Document:

Document

Exhibit 10.4

May 6, 2022
Drew Wilkerson
680 Brandy Court
Waxhaw, North Carolina 28173
Dear Drew,
On behalf of the leadership team of XPO Logistics, Inc. (“XPO”), I’m happy to offer you a new position as Chief Executive Officer of the anticipated spin-off of XPO’s North American Transportation (“NAT”) segment (“SpinCo” or the “Company”), subject to and commencing upon the completion of the spin-off of NAT, which is expected to occur in the second half of 2022 (the “Spin-Off Effective Date”). If the spin-off does not occur, you will remain in your existing role of President, NAT, subject to the existing terms and conditions of your employment with XPO. I know I speak for the rest of our team when I say how pleased we are to make you this offer. This letter sets forth all of the terms and conditions of the offer.
Reporting and Work Location. In your role as Chief Executive Officer of SpinCo, you’ll report directly to SpinCo’s Board of Directors, and lead SpinCo. You’ll be based out of SpinCo’s Charlotte, North Carolina office.
Full-Time Employment. During your employment, you will be required to devote your full time and attention to your duties and responsibilities for the Company. You may not engage in any outside full or part-time employment without the prior written consent of the Company. For the avoidance of doubt, this does not preclude you from serving as an officer or director or otherwise participating in non-profit, educational, social welfare, religious or civic organizations, provided any such activities do not unreasonably interfere with the performance of your duties and responsibilities to the Company.
Your Compensation. We’d like to offer you the following compensation package:
•Base Salary: You’ll receive an annual base salary of $650,000, paid on a biweekly basis, less all applicable withholdings and deductions, and pro-rated for any partial period worked.
•Non-Pro-rated Annual Incentive: You will be eligible to participate in the Company’s annual incentive plan, subject to the terms and conditions of the plan, as may be amended. The incentive plan structure is based on a target percentage of your base salary. The target incentive for you is 135% of your base salary. You will have the opportunity to earn 0% to 200% of your target incentive based on the aggregate level of achievement of your performance goals and the Company’s achievement of its business goals. Your performance goals, the Company’s business goals, and the payout curve for the bonus plan will be determined annually by the Compensation  Committee of the Company’s Board of Directors (or its delegate) in its discretion. Your annual incentive will not be pro-rated for the year in which you begin employment as the CEO of SpinCo.

•Long-term Incentive: You will be eligible for a long-term incentive award, the amount, form and timing of which will be determined by SpinCo following the Spin-Off Effective Date. Any such award will be contingent upon the approval of the Compensation Committee of SpinCo’s Board of Directors or its delegate.
•Incentive Grant: On May 2, 2022 (the “Grant Date”), XPO awarded you an initial long-term stock incentive award (the “Incentive Grant”) with a Grant Date value of $7,500,000 to be awarded in the form of Company Performance-Based Stock Units (“PSUs”).  The PSUs will vest in increments over five years following the Grant Date, contingent upon (i) the occurrence of the spin-off by December 31, 2022 and (ii) your continuous employment with XPO through the date of the spin-off and then with SpinCo following the spin-off through each applicable vesting date. If either of these vesting conditions is not satisfied, then any unvested portion of the Incentive Grant shall be forfeited. In connection with the spin-off, it is expected that the Incentive Grant will be converted into an award relating to SpinCo common stock based on an adjustment methodology to be approved by the Compensation Committee of the Company’s Board of Directors.
•Annual and long-term incentive awards will be reflective of your individual performance and contributions, Company performance, and the scope and expectations  of your role in the Company. As an at-will employee, annual and long-term incentives are subject to change at the sole discretion of the Company’s Board of Directors.
Your Benefits.
We’re committed to hiring the best people, such as yourself. That’s why we offer a competitive benefits package-including healthcare coverage, personal time off, life/disability insurance, retirement planning and more. Additional details related to SpinCo’s benefits package will be provided to you following the Spin-Off Effective Date. Please note that the Company reserves the right to modify, amend and/or terminate the employee benefits at any time in its sole and absolute discretion, with or without prior notice to you, consistent with applicable law.
•Severance Benefits. You will also be eligible for severance payments and other benefits upon certain qualifying termination  events, subject to the terms and conditions  of the SpinCo Severance Plan (“Plan”).  A draft form of the Plan is attached, which will be finalized prior to the spin-off and become effective on the Spin-Off Effective Date.
•Company Policies. As a condition of your continued employment, you are required to abide by the Company’s rules and policies as may be published from time to time.
•SpinCo Confidential Information Protection Agreement. As a condition of your initial employment with SpinCo, you will be required to sign a Confidential Information Protection Agreement (“CIPA”) with SpinCo (the “SpinCo CIPA”). As the Spin-Off Effective Date and name of SpinCo are not yet public information, we have enclosed a draft of the form SpinCo CIPA to provide you with the general terms of the anticipated SpinCo CIPA, which, among other things, prohibits unauthorized use or disclosure of SpinCo’s confidential and proprietary information,  and includes  an  18-month non-competition provision and a two-year non-solicitation provision following the termination of your employment with SpinCo. You will be 

provided with the final execution copy of the SpinCo CIPA in advance of the Spin-Off Effective Date, which you will be required to sign by the Spin-Off Effective Date.
•XPO CIPA. Your existing CIPA with XPO (the “XPO CIPA”) will remain in effect in accordance with its terms, and XPO and its affiliates reserve all rights to enforce the provisions of the XPO CIPA as to XPO’s remaining business following the Spin-Off Effective Date. By signing this letter, you and XPO agree that the separation of your employment with XPO in connection with your transition to SpinCo is not considered a termination by XPO with or without Cause as defined under the XPO CIPA, and you are not entitled to any non-compete, severance, change in control, or other payments under the XPO CIPA upon separation of your employment with XPO in connection with the spin-off.
At-Will Employment. Your employment with the Company will be “at-will,” and shall continue only so long as continued employment is mutually agreeable to you and the Company. Either you or the Company may terminate the employment relationship at any time and for any reason, with or without cause or advance notice. We request that, in the event of resignation, you give the Company at least 30 days advance notice. Neither this offer letter nor any other written material issued by the Company constitutes a contract between you and the Company for employment, express or implied, for any specific duration.
Third Party Beneficiary. By signing this letter, you agree that SpinCo is an express third-party beneficiary of this letter, and this letter is for the benefit of SpinCo and XPO. You hereby expressly agree and consent to the assignment of this letter to SpinCo as of the Spin-Off Effective Date. All rights and obligations of XPO under this letter will transfer to SpinCo, and XPO will cease to have any obligations to you, as of the Spin-Off Effective Date.
Entire Offer. This letter, along with the SpinCo CIPA and SpinCo Severance Plan, contains the entire agreement and understanding between you and the Company regarding the employment relationship and supersedes any prior or contemporaneous agreements, understandings, communications, offers, representations, warranties, or commitments by or on behalf of the Company (oral or written). This offer letter is not to be construed as a contract for employment in any particular position for any particular salary or time period.
Taking the next step. As you know, XPO has generated tremendous momentum, thanks to the efforts of our people. With you on our team, we’re sure to continue along this trajectory and move forward to greater success.
Please make sure you’ve read the offer letter completely, plus all information included with it. Then sign and return the offer letter by e-mail to me at Josephine.Berisha@xpo.com. This offer of employment will terminate if it is not accepted, signed, and returned within ten (10) business days from the date above.

If you have any questions, please reach out to me at 203-484-8325 or Josephine.Berisha@xpo.com.
We look forward to working with you!
Sincerely,
/s/Josephine Berisha
Josephine Berisha,
Chief Human Resources Officer
Josephine.Berisha@xpo.com
Enclosures: Form SpinCo Confidential Information Protection Agreement; Draft Severance Plan
EMPLOYMENT ACCEPTANCE
I accept XPO’s offer of employment as stated above.
			
	/s/Drew Wilkerson
	Drew Wilkerson
	
	5/9/22
	Dateex_426990.htm

 

Exhibit 10.9

RESTATED AND AMENDED EXECUTIVE EMPLOYMENT AGREEMENT

 

 

This RE-STATED AND AMENDED EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement"), is effective July 1, 2022, by and between AMERX Health Care Corporation, a Florida corporation ("AMERX"), Procyon Corporation, a Colorado corporation ("Procyon") and Justice W. Anderson (the "Executive").

 

WHEREAS, AMERX has, prior to the date of this Agreement, employed the Executive as its President; and

 

WHEREAS, Executive is employed by Procyon as its Chief Executive Officer; and

 

WHEREAS, Procyon, the parent corporation of AMERX, has agreed to provide some of the benefits to Executive under this Agreement; and

 

WHEREAS, Procyon and AMERX desire to continue to employ the Executive on a full-time basis, and the Executive desires to be so employed by Procyon and AMERX, pursuant to the terms of this Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

 

ARTICLE I

EMPLOYMENT DUTIES AND BENEFITS

 

Section 1.1 Employment. Procyon Corporation and AMERX Health Care Corporation, the subsidiary of Procyon, hereby employs the Executive in the position described on Schedule 1 hereto as an executive officer of Procyon and AMERX, pursuant to the terms of this Agreement. The Executive accepts such employment and agrees to perform the duties and responsibilities assigned to him pursuant to this Agreement.

 

Section 1.2 Duties and Responsibilities. The Executive shall hold (the) positions with Procyon and AMERX which are specified on Schedule 1, which is attached hereto and incorporated herein by reference. The Executive is employed pursuant to the terms of this Agreement and agrees to devote full-time to the business of Procyon and AMERX. The Executive shall perform the duties set forth on Schedule 1 while employed as an executive officer, and such further duties as may be determined and assigned to him from time-to-time by the Board of Directors of Procyon Corporation, the parent corporation of AMERX ("Procyon").

 

Section 1.3 Working Facilities. The Executive shall be furnished with facilities and services suitable to the position and adequate for the performance of the Executive's duties under this Agreement. The Executive's duties shall be rendered at AMERX offices, or at such other place or places as the Executive may designate with AMERX approval, which shall not be unreasonably withheld.

 

1

 

 

Section 1.4 Vacations. The Executive shall be entitled each year to a reasonable vacation of not less than four weeks in accordance with the established practices of Procyon now or hereafter in effect for executive personnel, during which time the Executive's compensation shall be paid in full. Should AMERX from time-to-time require the Executive to perform job duties during vacation periods, the Executive shall be entitled to compensatory vacation time at a mutually agreeable time.

 

Section 1.5 Expenses. The Executive is authorized to incur reasonable expenses for promoting the domestic and international business of Procyon/ AMERX in all respects, including expenses for entertainment, travel and similar items. Procyon/ AMERX will reimburse the Executive for all such expenses that are reasonably related to Procyon and/or AMERX business and primarily for Procyon and/or AMERX benefit, upon the presentation by the Executive, from time-to-time, of an itemized account of such expenditures. Such expenses shall be reviewed and approved by Procyon's Chief Financial Officer.

 

Section 1.6 Benefit Plans. From the effective date of this Agreement, the Executive shall be entitled to participate in all existing benefit plans provided to Procyon's executive employees, including, to the extent now or hereafter in effect, medical, health, dental, vision, disability, life insurance and death benefit plans, in accordance with the terms of such plans.

 

ARTICLE II

COMPENSATION

 

Section 2.1 Base Salary. Procyon/ AMERX shall pay to the Executive a base salary of not less than the amount specified on Schedule 1, subject to annual review and raises in such base salary. The base salary may be changed by action of Procyon's Board of Directors, and such changes shall thereafter be included in the Executive's base salary as defined for purposes of this Agreement and Procyon's bonus plan.

 

Section 2.2 Bonus and Bonus Plan Participation. The Executive shall be entitled to receive certain incentive bonuses, as set forth, and pursuant to the conditions set forth, in Schedule 1. The Executive shall also be entitled to receive bonuses in accordance with the provisions of the Procyon-wide bonus plan as in effect from time to time.

 

ARTICLE III

TERM OF EMPLOYMENT AND TERMINATION

 

Section 3.1 Term and Nature of Employment. This Agreement shall be for a term of one year, commencing on its effective date, subject, however, to termination during such period as provided in this Article and approval of the Board of Directors of Procyon in its annual meeting. Nothing contained in this Agreement shall be construed to constitute a promise of employment to the Executive for a fixed term. Executive's employment under this Agreement is strictly "at will," and may be terminated by the Executive, AMERX or Procyon, upon thirty days written notice, for any reason or no reason, with or without cause.

 

2

 

 

Section 3.2 Renewal of Term. Subject to Procyon's Board of Directors' approval, Executive's employment shall be extended for one additional year at the end of each year of the term, or extended term, of this Agreement on the same terms and conditions as contained in this Agreement, unless either AMERX, Procyon or the Executive shall, prior to the expiration of the initial term or of any renewal term, give written notice of the intention not to renew this Agreement.

 

Section 3.3 Termination. In the event of termination of this Agreement by the Executive or Procyon or AMERX for any reason, including termination by death or disability of the Executive, AMERX shall be obligated to compensate the Executive for any accrued vacation time not taken and any earned but unpaid base salary and any earned but unpaid bonuses up to the date of termination.

 

Section 3.4 Options. Any options granted to the Executive to purchase stock of Procyon shall become fully vested on the date of the involuntary termination of this Agreement. This provision shall serve as a contractual modification of any option grants or agreements between the Executive and Procyon, whether such grants or agreements shall pre-date or postdate this Agreement, and is hereby Incorporated by reference into each such option grant or agreement.

 

 

ARTICLE IV

GENERAL MATTERS

 

Section 4.1 Governing Law. This Agreement shall be governed by the laws of the State of Florida and shall be construed in accordance therewith.

 

Section 4.2 No Waiver. No provision of this Agreement may be waived except by an agreement in writing signed by the waiving party. A waiver of any term or provision shall not be construed as a waiver of any other term or provision.

 

Section 4.3 Amendment. This Agreement may be amended, altered or revoked at any time, in whole or in part, by filing with this Agreement a written instrument setting forth such changes, signed by each of the parties.

 

Section 4.4 Benefit. This Agreement shall be binding upon the Executive, Procyon and AMERX, and shall not be assignable by Procyon or AMERX without the Executive's written consent.

 

Section 4.5 Construction. Throughout this Agreement the singular shall include the plural, and the plural shall include the singular, and the masculine and neuter shall include the feminine, wherever the context so requires.

 

Section 4.6 Text to Control. The headings of articles and sections are included solely for convenience of reference. If any conflict between any heading and the text of this Agreement exists, the text shall control.

 

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Section 4.7 Severability. If any provision of this Agreement is declared by any court of competent jurisdiction to be invalid for any reason, such invalidity shall not affect the remaining provisions. On the contrary, such remaining provisions shall be fully severable, and this Agreement shall be construed and enforced as if such invalid provisions had not been included in the Agreement.

 

Section 4.8 Authority. The officer executing this Agreement on behalf of Procyon and AMERX has been empowered and directed to do so by the Board of Directors of Procyon.

 

Section 4.9 Effective Date. The effective date of this Agreement shall be July 1, 2022.

 

	
			PROCYON CORPORATION

				 	
			EXECUTIVE

			
	 	 	 	 	 
	
			By:

				/s/ James B Anderson	 	
			By:

				/s/ Justice W. Anderson
	 	James B Anderson	 	 	Justice W. Anderson
	 	Chief Financial Officer and   	 	 	Chief Executive Officer/President and
	 	AMERX Health Care VP of Operations	 	 	AMERX Health Care CEO/President
	 	 	 	 	 
	
			By:

				
			/s/ Fred W. Suggs, Jr.

				 	 	 
	 	
			Fred W. Suggs, Jr.

				 	 	 
	 	
			Director, Member of the Procyon

				 	 	 
	 	
			Corporation Compensation Committee  

				 	 	 
	 	 	 	 	 
	
			By:

				
			/s/ Joseph R Treshler 

				 	 	 
	 	
			Joseph R. Treshler

				 	 	 
	 	
			Director, Member of the Procyon

				 	 	 
	 	
			Corporation Compensation Committee

				 	 	 

 

Effective: July 1, 2022

 

FY 2023

PROCYON CORPORATION

AMERX HEALTH CARE CORPORATION

RESTATED AND AMENDED EXECUTIVE EMPLOYMENT AGREEMENT

Schedule 1

Salary and Benefit Statement

Date: July 1, 2022

 

	
			Executive:

				
			Justice W. Anderson

			

	
			Position:

				
			Procyon Corporation: Chief Executive Officer and AMERX Health Care Corporation: President

			

	
			Base Salary:

				
			$269,850, annually

			

	
			Benefits:

				
			As outlined in this Executive Employment Agreement.

			

	
			Term:

				
			As described in Section 3.1 of the Executive Employment Agreement.

			

The terms of the AMERX Sales Incentive and Profit Bonuses described below shall be reviewed annually, and any amendment thereto to be made with the mutual agreement of Procyon, AMERX and the Executive.

 

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Duties and

Responsibilities:

 

Provide oversight of Procyon and AMERX (the wholly-owned subsidiary of Procyon) operations; provide oversight of all executive and operating officers of AMERX; devise and execute strategic planning for all aspects of business conducted by AMERX; create new business opportunities for AMERX to remain competitive in the marketplace; provide oversight of AMERX operations to insure sales growth, production efficiency, quality, service and cost-effective management of resources; financial reporting; preside over Procyon Board meetings as Chief Executive Officer and President; and such other matters as determined time to time by Procyon's Board of Directors.

 

AMERX Sales Incentive

Quarterly Payout on Growth:

 

Incentive pay will be based on AMERX fiscal 2023 quarterly product sales growth over previous fiscal years' quarterly net product sales.

 

	 	
			-

				
			6.00% Sales Incentive: If AMERX net sales for the fiscal 2023 quarter are over the prior fiscal years' net sales for the corresponding quarter, but the increase is less than 15%, incentive pay will consist of a cash payment equal to 6.00% of net sales growth for that quarter over the prior fiscal years' net sales for that quarter.

			

 

	 	
			-

				
			6.75% Sales Incentive: If AMERX net sales for fiscal 2023 quarter increase at least 15% but less than 25% over the prior fiscal years' net sales for the corresponding quarter, incentive pay will consist of a cash payment equal to 6.75% of net sales growth for that quarter over the prior fiscal years' net sales for that quarter.

			

 

	 	
			-

				
			7.50% Sales Incentive: If AMERX net sales for fiscal 2023 quarter increase 25% or more over the prior fiscal years' net sales for the corresponding quarter, incentive pay will consist of a cash payment equal to 7.50% of net sales growth for that quarter over the prior fiscal years' net sales for that quarter.

			

 

The Sales Incentive Bonus will be paid by AMERX to the Executive 30 days following the end of the fiscal quarter

 

Profit Incentive:

 

The profit incentive, which includes profit from product sales, as well as profit from other activities which may be designated from time to time by the Board of Directors, will be based on audited fiscal year 2023.

 

5

 

 

AMERX Profit Bonus:

 

	 	
			-

				
			3.25% Profit Incentive: If AMERX profit is less than $750,000, the Executive will receive a cash payment equal to 3.25% of the total profit.

			

	 	
			-

				
			3.75% Profit Incentive: If AMERX profit is $750,000 or more, but less than $1,000,000, the Executive will receive a cash payment equal to 3.75% of the total profit and 25,000 non-qualified options to purchase shares of Procyon common stock, pursuant to the 2020 Stock Option Plan.

			

	 	
			-

				
			4.25% Profit Incentive: If AMERX profit is $1,000,000 or more, the Executive will receive a cash payment equal to 4.25% of the total profit and 50,000 non-qualified options to purchase shares of Procyon common stock, pursuant to the 2020 Stock Option Plan.

			

 

 

The Profit Incentive Bonus for AMERX will be paid by AMERX to the Executive after the close of the fiscal year end.

 

APPROVED:

 

	
			PROCYON CORPORATION

				 	
			EXECUTIVE

			
	 	 	 	 	 
	
			By:

				/s/ James B Anderson	 	
			By:

				/s/ Justice W. Anderson
	 	James B Anderson	 	 	Justice W. Anderson
	 	Chief Financial Officer and   	 	 	Chief Executive Officer/President and
	 	AMERX Health Care VP of Operations	 	 	AMERX Health Care CEO/President
	 	 	 	 	 
	
			By:

				
			/s/ Fred W. Suggs, Jr.

				 	 	 
	 	
			Fred W. Suggs, Jr.

				 	 	 
	 	
			Director, Member of the Procyon

				 	 	 
	 	
			Corporation Compensation Committee  

				 	 	 
	 	 	 	 	 
	
			By:

				
			/s/ Joseph R Treshler 

				 	 	 
	 	
			Joseph R. Treshler

				 	 	 
	 	
			Director, Member of the Procyon

				 	 	 
	 	
			Corporation Compensation Committee

			

 

 

Effective Date: July 1, 2022

 

 

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