Document:

Exhibit

EXHIBIT 10.5

Matthew Lanigan
Amendment to Employment Agreement and Change in Control Agreement
April 6, 2020

This Amendment is entered into between Matthew Lanigan (“Executive”) and Newpark Resources, Inc. (“Company”) and amends that certain Employment Agreement dated effective April 22, 2016, between the Company and the Executive (the “Employment Agreement”) as well as that certain Change in Control Agreement dated effective April 22, 2016 between the Company and the Executive (the “Change in Control Agreement”).    

Due to the current economic situation, Executive and the Company mutually agree that Executive’s current annualized Base Salary of Four Hundred Twenty-Three Thousand Five Hundred Dollars and No Cents ($423,500.00) established pursuant to Section 1.2(a) of Executive’s Employment Agreement will be temporarily reduced by 15% to Three Hundred Fifty-Nine Thousand Nine Hundred Seventy-Five Dollars and No Cents ($359,975.00).  This temporary 15% reduction to Executive’s annualized Base Salary will take effect on April 1, 2020 and will continue in effect until a date to be mutually agreed in writing by and between the Executive and the Company (the “End Date”, and the period from the Effective Date until the End Date, the “Reduction Period”).     

Executive’s Base Salary for purposes of calculating incentive compensation payments contemplated by Section 1.2(b) of the Employment Agreement will likewise be adjusted effective as of April 1, 2020 to reflect this temporary 15% reduction in Executive’s annualized Base Salary.

Executive and the Company agree that this temporary 15% reduction in Executive’s annualized Base Salary and the corresponding adjustment to Executive’s incentive compensation are being made with the full knowledge and consent of Executive.  Executive and the Company further agree that this temporary 15% reduction in Executive’s annualized Base Salary and the corresponding adjustment to Executive’s incentive compensation do not constitute “Good Reason” for any purpose under the Employment Agreement including, without limitation, Section 2.1 and Section 2.3 of the Employment Agreement, or a termination by the Company.

Executive and the Company agree that if Executive’s employment is terminated at any time during the Reduction Period pursuant to Section 2.3 of Executive’s Employment Agreement, Executive’s “lump sum payment” provided for in Section 2.3(i)(A) or 2.3(i)(B) will be calculated based upon Executive’s annualized Base Salary immediately prior to the Reduction Period and not on Executive’s Base Salary at the time of termination.

Executive and the Company agree that if Executive’s employment is terminated at any time during the Reduction Period, pursuant to Section 2.2 of the Change in Control Agreement, as a result of a Change in Control (as defined in the Change in Control Agreement) or a Potential Change in Control (as defined in the Change in Control Agreement), Executive’s Termination Benefit provided for in Section 3.3 and Annex A of the Change in Control Agreement will be calculated based upon Executive’s Base Salary immediately prior to the Reduction Period and not on Executive’s base salary at the time of termination.  

All other terms and provisions in the Employment Agreement and the Change in Control Agreement remain unchanged and in full force and effect.  

Amendment to Employment Agreement and Change of Control Agreement between 
Matthew Lanigan and Newpark Resources, Inc.

AGREED and ACCEPTED on this 6th day of April, 2020.

	
		
	/s/ Matthew Lanigan
	 

	Matthew Lanigan (Executive)
	 

	 
	 

	/s/ Paul L. Howes
	 

	Paul L. Howes
	 

	President & CEO
	 

	Newpark Resources, Inc.
	 

	 
	 

	 
	 

	 
	 

2Exhibit
4.4

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

PowerFleet,
Inc. (“PowerFleet” or the “Company”) has authority to issue 75,150,000 shares of capital stock, consisting
of 75,000,000 shares of common stock, $0.01 par value per share (the “Common Stock”), and 150,000 shares of preferred
stock, $0.01 par value per share, of which 100,000 shares of preferred stock are currently designated as Series A Convertible
Preferred Stock (“Series A Preferred Stock”). The following is a summary of the material terms of the Common Stock
and the Series A Preferred Stock. This summary is qualified in its entirety by reference to PowerFleet’s Amended and Restated
Certificate of Incorporation (the “Charter”) and PowerFleet’s Amended and Restated Bylaws (the “Bylaws”),
which are incorporated herein by reference as Exhibit 3.1 and 3.2, respectively, to PowerFleet’s Annual Report on Form 10-K
of which this exhibit is a part. Please read the Charter, the Bylaws and applicable provisions of the Delaware General Corporation
Law (the “DGCL”) for additional information.

 

Common
Stock

 

Voting.
The holders of Common Stock are entitled to one vote for each share held of record on all matters on which the holders of Common
Stock are entitled to vote. Holders of Common Stock do not have cumulative voting rights in the election of directors.

 

Dividends.
Subject to the rights of holders of all classes of stock (including the Series A Preferred Stock) at the time outstanding that
have prior rights as to dividends, the holders of Common Stock are entitled to receive, when, as and if declared by our board
of directors (“Board”), out of assets of the Company legally available therefor, such dividends as may be declared
from time to time by our Board.

 

Liquidation
Rights. Upon any voluntary or involuntary liquidation, dissolution or winding-up, or Deemed Liquidation Event (as defined
in our Charter), the holders of Common Stock will be entitled to receive all assets of the Company available for distribution
to its stockholders, subject to any preferential or pari passu rights of any then outstanding preferred stock (including the Series
A Preferred Stock).

 

Other
Rights. Holders of Common Stock have no preemptive, conversion, subscription or other rights, and there are no redemption
or sinking fund provisions applicable to the Common Stock. The rights, preferences, and privileges of the holders of Common Stock
are subject to and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we
may designate in the future (including the Series A Preferred Stock).

  

Anti-Takeover
Provisions

 

Our
Charter contains provisions that could have an anti-takeover effect and may delay, defer or discourage potential acquisition proposals
or tender offers or delaying or preventing attempts to influence or replace our incumbent directors and officers. These provisions
are summarized below.

 

Board
of Directors

 

Our
Charter provides that our Board will consist of seven directors. So long as shares of Series A Preferred Stock remain outstanding
and represent 15% or more, on an as-converted basis, of the voting power of the Common Stock (irrespective of whether or not a
Series A Voting Activation Notice has been delivered to us), the holders of at least a majority of the outstanding shares of Series
A Preferred Stock, voting as a separate class, will be entitled to elect two directors to our Board as the Series A Directors
and any committee thereof (subject to applicable Securities and Exchange Commission (“SEC”) and Nasdaq Stock Market
(“Nasdaq”) independence requirements). So long as any shares of Series A Preferred Stock remain outstanding and represent
less than 15% but not less than 5%, on an as-converted basis, of the voting power of the Common Stock (irrespective of whether
or not a Series A Voting Activation Notice has been delivered to us), the holders of at least a majority of the outstanding shares
of Series A Preferred Stock, voting as a separate class, will be entitled to elect one Series A Director to our Board and any
committee thereof (subject to applicable SEC and Nasdaq independence requirements). For so long as any shares of Series A Preferred
Stock remain outstanding and there are no Series A Directors on our Board, the holders of at least a majority of the outstanding
shares of Series A Preferred Stock, voting as a separate class, will be entitled to designate one non-voting observer to attend
all meetings of our Board and committees thereof, although the observer may be excluded from executive sessions of any committee
at the discretion of such committee. A Series A Director may be removed without cause only by the affirmative vote of the holders
of a majority of the outstanding shares of Series A Preferred Stock acting as a separate class and any vacancy in office of a
Series A Director may be filled only by the holders of a majority of the outstanding shares of Series A Preferred Stock acting
as a separate class.

 

    	 	 	 

    	 

    

 

No
Cumulative Voting

 

Our
Charter does not provide for cumulative voting in the election of directors. Under cumulative voting, a minority stockholder holding
a sufficient number of shares may be able to ensure the election of one or more directors. The absence of cumulative voting may
have the effect of limiting the ability of minority stockholders to effect changes in our Board.

 

Undesignated
Preferred Stock

 

Our
Charter provides our Board with the authority, without further action by the holders of Common Stock, to provide for the issuance
of up to 50,000 shares of currently undesignated and unissued preferred stock in one or more series and to establish from time
to time the number of shares to be included in each series, and to fix the designations, powers, preferences and rights of the
shares of each such series and any qualifications, limitations or restrictions thereof. Our Charter has designated 100,000 shares
as Series A Preferred Stock. The existence of authorized but unissued shares of preferred stock would enable our Board to render
more difficult or to discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest
or other means.

 

Consent
Rights of Series A Preferred Stock

 

Our
Charter provides that for so long as shares of Series A Preferred Stock are outstanding and convertible into shares of Common
Stock that represent at least 10% of the voting power of the Common Stock, or the Investors and their affiliates continue to hold
at least 33% of the aggregate amount of Series A Preferred Stock issued to the Investors on the Original Issuance Date, the consent
of the holders of at least a majority of the outstanding shares of Series A Preferred Stock will be necessary for us to, among
other things, (i) liquidate the Company or any operating subsidiary or effect any Deemed Liquidation Event, except for a Deemed
Liquidation Event in which the holders of Series A Preferred Stock receive an amount in cash not less than the Redemption Price,
(ii) amend our organizational documents in a manner that adversely affects the Series A Preferred Stock, (iii) issue any securities
that are senior to, or equal in priority with, the Series A Preferred Stock or issue additional shares of Series A Preferred Stock
to any person other than the Investors or their affiliates, (iv) incur indebtedness above the agreed-upon threshold, (v) change
the size of our Board to a number other than seven, or (vi) enter into certain affiliated arrangements or transactions.

 

Section
203 of the Delaware General Corporation Law (the “DGCL”)

 

We
are subject to Section 203 of the DGCL. Section 203 of the DGCL generally prohibits “business combinations”, including
mergers, sales and leases of assets, issuances of securities and similar transactions, by a corporation or a subsidiary with an
interested stockholder who beneficially owns 15% or more of a corporation’s voting stock, within three years after the person
or entity becomes an interested stockholder, unless: (i) the board of directors approved the acquisition of stock pursuant to
which the person became an interested stockholder or the transaction that resulted in the person becoming an interested stockholder
prior to the time that the person became an interested stockholder, (ii) upon consummation of the transaction that resulted in
the person becoming an interested stockholder, such person owned at least 85% of the corporation’s outstanding voting stock
(excluding shares owned by directors who are officers and shares owned by employee stock plans in which participants do not have
the right to determine confidentially whether shares will be tendered in a tender or exchange offer) or (iii) after the person
or entity becomes an interested stockholder, the transaction is approved by the board of directors and by the affirmative vote
of at least 66 2/3% of the outstanding voting stock not owned by the interested stockholder. These provisions may have the effect
of delaying, deferring or preventing changes in control of the Company.

 

    	 	 	 

    	 

    

 

Requirements
for Advance Notification of Stockholder Nominations and Proposals

 

Our
Bylaws provide advance notice procedures for stockholders to nominate candidates for election as directors at our annual and special
meetings of stockholders and for stockholders seeking to bring business before its annual meeting of stockholders. Generally,
such notice must be provided no later than the 90th day, nor earlier than 120th day, prior to the first anniversary of the previous
year’s annual meeting of stockholders. Our Bylaws also specify certain requirements regarding the form and content of a
stockholder’s notice as to each person the stockholder proposes to nominate for election as a director.

 

Special
Meetings of Stockholders

 

Our
Charter provides that special meetings of the stockholders may be called only by (i) our Board pursuant to a resolution adopted
by a majority of the entire Board, either upon motion of a director or upon written request by holders of at least fifty percent
(50%) of the voting power of all the shares of our capital stock then entitled to vote generally in the election of directors,
voting together as a single class or (ii) the chairman of the Board or our chief executive officer.

 

Stockholder
Action by Written Consent

 

Our
Charter provides that any action required or permitted to be taken by our stockholders must be effected at an annual or special
meeting, and may not be taken by written consent, except for (a) any action required or permitted to be taken by the holders of
outstanding Series A Preferred Stock may be effected by the written consent of the holders of at least a majority in voting power
of the outstanding shares of Series A Preferred Stock (provided that the holders of the Series A Preferred Stock then have the
right to vote pursuant to our Charter) and (b) any action required or permitted to be taken by the holders of the outstanding
shares of Common Stock, may be effected by the written consent of (i) the holders of outstanding shares of Series A Preferred
Stock (provided that the holders of the Series A Preferred Stock then have the right to vote pursuant to our Charter) and/or (ii)
the holders of outstanding shares of Common Stock that are current or former holders of Series A Preferred Stock, holding at least
a majority of the total voting power of the outstanding shares of Common Stock and/or Series A Preferred Stock entitled to vote
thereon. Other than as set forth above, the holders of Common Stock are not permitted to act by written consent.

 

Preemptive
Rights

 

For
so long as at least 25% of the aggregate amount of shares of Series A Preferred Stock issued on the Original Issuance Date are
outstanding, each holder thereof will have the right to purchase up to its pro rata share of the securities being issued and sold
in any of our future offerings of equity or debt securities, subject to customary exceptions.

 

Amendments
of Certain Provisions of Our Charter

 

Our
Charter requires the affirmative vote of at least 75% of the voting power of the outstanding shares of our capital stock entitled
to vote in the election of directors, voting together as a single class, to amend, alter, change, or repeal Articles FOURTEENTH
and FIFTEENTH, which relate to the ability of stockholders to call a special meeting or act by written consent, and the threshold
for amending such provisions. In all other matters (other than those relating to the rights of the holders of the Series A Preferred
Stock), amendment of our Charter requires a majority of the voting power of the outstanding shares of our capital stock.

 

Authority
to Amend Bylaws

 

Our
Charter provides that the Board has the power to alter, amend or repeal any provision of the Bylaws or to make new Bylaws, without
the consent or vote of our stockholders.

 

Listing

 

Our
Common Stock is currently quoted on the Nasdaq Global Market and the Tel Aviv Stock Exchange under the symbol “PWFL”.

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for the Common Stock is American Stock Transfer & Trust Company, LLC.

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