Document:

Document

Exhibit 10.3
October 7, 2022

Eric Chang
Ecchang621@gmail.com

Re: Offer of Employment with Edgio, Inc.

Dear Eric: 

Congratulations and welcome to our First Team! We believe that Edgio will offer you interesting challenges as well as the opportunity for growth and professional development.  Please review the following summary of our offer that explains what you can expect from us and what we expect from you.  

●Your position will be Chief Accounting Officer reporting to Stephen Cumming, Chief Financial Officer and your work location designation will be Remote.   You will be required to devote your full business efforts and time to the Company and will use good faith efforts to discharge your obligations.  

●As Chief Accounting Officer, you will serve as the Principal Accounting Officer and shall be a Section 16 Officer subject to reporting and other obligations under Section 16 of the Securities Exchange Act of 1934.  

●You will receive an annual salary of $320,000 paid over twenty-four pay periods on the 15th and last day of each month. 

●Your anticipated start date is October 31, 2022 pending your timely submission and completion of pre-employment requirements.

●Your annual target bonus opportunity is 40% of your annual salary and will be prorated based on your date of hire. Bonuses are discretionary and contingent upon the company meeting its financial metrics. If funded, bonus will be based on Company and individual performance.  Receipt of any such discretionary bonus is contingent upon your continued employment with the Company through the date such bonus is paid and subject to board approval.

●Your New Hire equity grant is:
o$165,000 Restricted Stock Units (RSUs)
o$165,000 Stock Options 

Equity will be granted under and subject to the terms, definitions, and provisions of Edgio’s Amended and Restated 2007 Equity Incentive Plan (the Plan). Grant recommendations will be presented to the Compensation Committee or its delegate for consent the month following your start date. We will send you a written notice of the grant within thirty (30) days of its approval (the Notice). The grant will be subject to the terms and conditions of the Plan and the Notice, which include the vesting schedule and conditions. No right to any stock is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting or employment.

●Equity Awards:  You may from time to time be issued stock options, RSUs or other equity awards under the Plan or a successor plan.  You will be eligible to participate in the 2022 equity incentive grants, with a grant value of $165,000, subject to Compensation Committee approval of the type of equity award, terms and conditions of the 2022 grants.

●Benefits: You are eligible to enroll in Edgio’s Group Health Plans on the first day of the month following your date of hire.

●401(k): You may elect to participate in Edgio’s 401(k) Retirement Savings Plan on the first day of the month following 30 days of employment. We match 100% of the first 3% and 50% of the next 2%. Both employee and employer contributions are immediately vested.

●Employee Stock Purchase Plan (ESPP): You may participate in Edgio’s ESPP, which allows you to purchase the Company’s stock at a discounted rate through payroll deductions.  We offer two open enrollment periods (winter and summer).

●Paid Time Off (PTO): We believe that it is important for you to take the time you need when you need it. Edgio has a flexible PTO policy for exempt employees that can be used for a variety of reasons. This allows employees to coordinate PTO without hard and fast limits; therefore, PTO is not accrued for exempt employees and all time off is up to your coach’s discretion. 

●Employment “at-will”:  You and the Company agree that your employment with the Company constitutes “at-will” employment and acknowledge that your employment may be terminated at any time, with or without good cause or for any or no cause, at the option of either you or the Company.  

●Severance:  If your employment is terminated by the Company: (i) without Cause (as defined below) or for a resignation for Good Reason (as defined below) and such termination is not in connection with a Change of Control (as defined below), subject to signing and not revoking a separation and release agreement in a form acceptable to the Company and irrevocable no later than sixty (60) days following the effective date of termination, you shall receive continued payment of your base salary (subject to applicable tax withholdings) for six (6) months from the effective date of the termination, such amounts to be paid in accordance with the Company’s normal payroll policies; or (ii) without Cause or for a resignation for Good Reason and such termination is in connection with a Change of Control, subject to signing and not revoking a separation and release agreement in a form acceptable to the Company and irrevocable no later than sixty (60) days following the effective date of termination, you shall receive (x) continued payment of your base salary (subject to applicable tax withholdings) for six (6) months from the effective date of the termination, such amounts to be paid in accordance with the Company’s normal payroll policies, (y) fifty percent (50%) of your target annual incentive for the year in which the effective date of the termination occurs, and (z) one hundred percent (100%) of your then outstanding unvested equity awards will vest on the effective date of the termination. 

“Cause” means:

(i)    Acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of you with respect to your obligations under this offer letter or otherwise relating to the business of the Company, repeated instances of neglect of your duties after notice of such neglect, or failure or refusal to carry out lawful directions from the CFO with respect to your obligations under this offer letter or otherwise relating to the business of the Company;

(ii)    Any act of personal dishonesty taken by you in connection with your responsibilities as an employee of the Company, if taken with the intention or reasonable expectation that such action may result in the substantial personal enrichment of you; 

(iii)    Your conviction of, or plea of nolo contendere to, a felony that the Board reasonably believes has had or will have a material detrimental effect on the Company’s reputation or business;

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(iv)    A breach of any fiduciary duty owed to the Company by you that has a material detrimental effect on the Company’s reputation or business;

(v)    You being found liable in any Securities and Exchange Commission or other civil or criminal securities law action or entering any cease and desist order with respect to such action (regardless of whether or not you admit or deny liability);

(vi)    You (a) obstruct or impede; (b) endeavor to obstruct, impede or improperly influence, or (c) fail to materially cooperate with, any investigation authorized by the Board or any governmental or self-regulatory entity (an “Investigation”).  However, your failure to waive attorney-client privilege relating to communications with your own attorney in connection with an Investigation will not constitute “Cause”; or

(vii)    Your disqualification or bar by any governmental or self-regulatory authority from serving in the capacity contemplated by this Agreement or your loss of any governmental or self-regulatory license that is reasonably necessary for you to perform your responsibilities to the Company under this offer letter, if (A) the disqualification, bar or loss continues for more than thirty (30) days, and (B) during that period the Company uses its good faith efforts to cause the disqualification or bar to be lifted or the license replaced.  While any disqualification, bar or loss continues during your employment, you will serve in the capacity contemplated by this Agreement to whatever extent legally permissible and, if your employment is not permissible, you will be placed on leave (which will be paid to the extent legally permissible).

“Change of Control” will mean the occurrence of any of the following events:

(i)The consummation by the Company of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation;
(ii)     The approval by the stockholders of the Company, or if stockholder approval is not required, approval by the Board, of a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; or
(iii)     Any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities.

“Good Reason” means your voluntary resignation of employment because of the existence of any of the following reasons and which reason(s) continue following written notice and the expiration of any cure period (as discussed below), without your written consent:

(i)A significant, material reduction of your duties, position, or responsibilities, relative to your duties, position, or responsibilities in effect immediately prior to the reduction of such duties, position or responsibilities that you assert constitutes the basis for resignation for Good Reason. A change of title alone is not Good Reason;

(ii)A material reduction in your cash compensation (either annual salary, or annual salary and annual incentive target combined) as in effect immediately prior to such reduction.  Notwithstanding the foregoing, a one-time reduction that also is applied to other similarly situated executive officers of the Company and which one time reduction reduces the cash compensation by a percentage reduction of ten percent (10%) or less in the aggregate will not be deemed material and will not constitute “Good Reason”;

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(iii)A failure by the Company to require any successor entity to the Company specifically to assume all of the Company's obligations to you under this Agreement; 

(iv)A material change in the geographic location from which you must perform services (that is, a requirement that you re-locate your permanent residence from your then-current location), it being recognized that you will be required to travel and be present in the Company’s offices, as reasonably required, in performance of your business duties; or

(v)A material breach by the Company (or its successor) of any material contractual obligation owed you pursuant to this offer letter (including, without limitation, the failure of the Company to obtain the assumption of this Agreement by a successor). 

You will not resign for Good Reason without first providing the Company with written notice within thirty (30) days of the event that you believe constitutes “Good Reason” specifically identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days.

We reserve the right to conduct background investigations and/or reference checks on all our potential employees, where permitted by law. Your job offer is contingent upon a clearance of such a background investigation and/or reference check. 

For purposes of federal immigration law, you will be required to provide to us documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated.

We also ask that, if you have not already done so, you disclose to us any and all agreements relating to your prior employment that may affect your eligibility to be employed by us or limit the manner in which you may be employed. It is our understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Moreover, you agree that, during the term of your employment with us, you will not engage in any other employment, occupation, consulting, or other business activity directly related to the business in which we are now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to us. Similarly, you agree not to bring any third-party confidential information to Edgio, including that of your former employer, and that in performing your duties for us, you will not in any way utilize any such information.

As an Edgio employee, you will be expected to abide by our Code of Ethics and Business Conduct. Specifically, you will be required to sign an acknowledgement that you have read and understand our general rules of conduct which are included in the First Team Guide. As a condition of your employment, you are also required to sign and comply with an At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement (the CIIA) which requires, among other provisions, the assignment of patent rights to any invention made during your employment with us, and non-disclosure of our confidential and/or proprietary information. Please note that we must receive your signed CIIA before your first day of employment.

This offer letter is not to be construed as an employment agreement, rather it is an employment at-will offer and is contingent upon the successful completion of the pre-employment process. Please indicate your acceptance of our employment offer by signing this original offer letter and return it to us by Monday, October 10, 2022.  Understand that by signing this letter, you are acknowledging your understanding of the terms.

 We look forward to the opportunity to welcome you to Edgio!

Sincerely, 
The People Experience Team

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Eric Chang
Signature:     /s/ Eric Chang            Date signed: October 7, 2022

5exhibit105

             Exhibit 10.5  PERFORMANCE AWARDS AGREEMENT  BRT APARTMENTS CORP.      Name of Participant:     Number of AFFO Units:    Number of Initial TSR Units:    Grant Date:     June 24, 2022       THIS PERFORMANCE AWARDS AGREEMENT (the “Agreement”, is made as of June  24, 2022 between BRT Apartments Corp., a Maryland corporation (the “Company”), and _____,  (“Participant”).     WHEREAS, the Compensation Committee of the Board of Directors (“Committee”) has  determined to grant, pursuant to BRT Apartments Corp. 2022 Incentive Plan (the “Plan”), to the  Participant (i) Performance Awards in the form of performance based restricted stock units  (“RSUs”) payable upon the attainment by the Company over the Performance Cycle of the  Performance Criteria established by the Committee as set forth herein and (ii) cash settled  dividend equivalent rights, which are granted in tandem with the RSUs.     WHEREAS, these awards are subject to forfeiture and vesting as set forth herein.      NOW THEREFORE, the parties hereby agree as follows:    1. Incorporation of the Plan; Definitions.  The Participant acknowledges receipt of the  Plan, the Prospectus dated June 14, 2022 and the Prospectus Supplement dated June 24,  2022.  All provisions of this Agreement and the rights of a Participant hereunder are subject in  all respects to the provisions of the Plan and the powers of the Committee provided therein and  herein.  Capitalized terms used without being defined herein shall have the meanings given to  such terms in the Plan or Exhibit A annexed hereto.      2. Administration.  The Performance Awards shall be administered by the Committee  with the powers and authority set forth in the Plan.    3. Terms of the Awards.  (a) Unless otherwise forfeited in accordance with this  Agreement, including pursuant to Section 7 hereof, the number of Shares underlying RSUs that  vest will be based on (i) compounded annual growth rate in AFFO and (ii) compounded annual  growth rate in TSR, in each case as measured over the Performance Cycle.  The number of  RSUs that vest based on satisfaction of the compound annual growth rate in TSR is subject to  adjustment based on a comparison of the Company’s compound annual growth rate in TSR to  the compound annual growth rate of the Peer Group.    (b) As soon as practicable after the Units become vested and non-forfeitable, but in  no event later than March 15 following the calendar year of vesting, the Participant shall receive  one share (the “Share” or “Shares”) of Company common stock for each vested Unit.  In the  event that a fraction of a Share would be issued, the number of Shares to be issued shall be  

 

2    rounded to the nearest whole share, and all calculations hereunder shall be rounded to the  nearest hundredth.  Any delivery of Shares under this Agreement may be made by means of a  credit of Shares in book entry form.    4. TSR Units Vesting on the Basis of Compound Annual Growth Rate in TSR.  (a)  The number of Initial TSR Units that vest based on compound annual growth rate in TSR over  the Performance Cycle will be determined in accordance with the following table:                                              Compound Annual Growth Rate in TSR               Null      Threshold      Target     Maximum               <5%   5%               8% 11% and above  Percentage of Initial TSR Units that Vest            0    25            50        100    (b) In the event that compound annual growth rate in TSR falls between two levels in  the above table, straight-line linear interpolation will be used to determine the number of Initial  TSR Units that vest.    (c) The base or initial price that shall be used in calculating compound annual  growth in TSR is the closing price as reported by the New York Stock Exchange Consolidated  Tape on June 30, 2022, subject to appropriate adjustment for stock splits, reverse splits, and  similar events.    (d) In the event that the compound annual growth rate in TSR is in the: (i) top  quartile of the corresponding growth rate of its Peer Group over the corresponding period, the  number of Additional TSR Units that vest shall equal 25% of the Initial TSR Units that vest (the  “Peer Group Addition”); and (ii) bottom quartile of the corresponding growth rate of its Peer  Group over the corresponding period, the number of Initial TSR Units that vest pursuant to  Section 4(a) shall be reduced by 25% (the “Peer Group Diminution”; and together with the Peer  Group Addition, the “Peer Group Adjustment”).    5. AFFO Units Earned on the Basis of the Compound Annual Growth Rate in AFFO.   The number of AFFO Units that vest based on compound annual growth rate in AFFO over the  Performance Cycle will be determined in accordance with the following table:                                                                Compound Annual Growth Rate in AFFO            Null  Threshold   Target    Maximum            <4%                  4%       6% 8% and above  Percentage of AFFO Units that Vest                0          25  50        100    The base AFFO which shall be used in measuring whether the applicable compound  annual growth rate is achieved shall be the AFFO for the 12 months ended June 30, 2022 and  the concluding AFFO shall be the AFFO for the 12 months ending June 30, 2025.  In the event  that such growth rate in AFFO falls between two levels in the above table, straight-line linear  interpolation shall be used to determine the number of AFFO Units that vest.    6. Vesting Determinations.    (a)  Promptly following June 30, 2025 (or within 60 days of a DDR Event and  contemporaneously with a Change in Control), the Committee shall perform or cause to be  performed, the necessary calculations to determine the number of RSUs earned by the  Participant pursuant to Sections 4 and 5, as applicable.  

 

3      (b)  The Participant shall have no rights to RSUs that vest pursuant to Sections 4 and 5,  as applicable, above until the number of such RSUs are determined by the Committee.    7. Forfeiture.  Upon a termination, prior to June 30, 2025, of the Participant’s status  as a Participant for any reason other than a DDR Event or Change in Control, all Units that have  not vested shall immediately terminate and be forfeited without consideration.  Any RSUs that  do not vest will, without payment of any consideration by the Company, automatically and  without notice terminate, be forfeited and be and become null and void as of 5:00 pm, New York  City Time on June 30, 2025, and neither the Participant nor any of his or her successors, heirs,  assigns, or personal representatives will thereafter have any further rights or interests in such  unvested Units or the underlying Shares.    8. Vesting Upon the Occurrence of a DDR Event or Change in Control.    (a)  Notwithstanding the forfeiture provisions of this Agreement, including Section 7  hereof, upon the occurrence of a:      (i) DDR Event, a pro rata portion (as defined) of Initial TSR Units and AFFO  Units, as applicable, shall vest, but only with respect to Units that would otherwise have vested  at the end of the Performance Cycle; and     (ii) Change in Control, (A) if the effective date is after December 31, 2023,  the Initial TSR Units and AFFO Units shall vest upon such effective date, and (B) occurs prior to  or on December 31, 2023, a pro rata portion of Initial TSR Units and AFFO Units shall vest upon  such Change in Control, unless the Committee in its discretion, determines to vest all such  Units, without proration.     (b) The number of Initial TSR Units that vest pursuant to Section 8(a) hereof will be  subject to the Peer Group Adjustment which will be measured, with respect to a:    (i) DDR Event, as of the end of the Performance Cycle; and    (ii) Change in Control, on the effective date thereof.    (c) For the purposes of this Section 8, the pro rata portion of Initial TSR Units and  AFFO Units that vest shall equal the product obtained by multiplying the Initial TSR Units and  AFFO Units, as applicable, by a fraction, the numerator of which is the number of days during  the period beginning July 1, 2022 and ending on the DDR Event or the effective date of the  Change in Control, as applicable, and the denominator of which is 1,096.    9. Restrictions on Transfer.  None of the RSUs granted hereunder shall be sold,  assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of or  encumbered, whether voluntarily or by operation of law (each such action a “Transfer”) until  after the date that such RSUs vest. Any attempted Transfer of RSUs not in accordance with the  terms and conditions of this Agreement shall be null and void, and the Company shall not reflect  on its records any change in record ownership of any RSUs as a result of any such Transfer,  and shall not in any way give effect to any such Transfer of any RSUs.  This Agreement is  personal to the Participant, is non-assignable and is not transferable in any manner, by  operation of law or otherwise, other than by will or the laws of descent and distribution.     

 

4    10. Rights as a Stockholder; Dividend Equivalents.    (a)  The Participant shall not have any rights of a stockholder with respect to the Shares  underlying the RSUs unless and until the Units vest and are settled in Shares.    (b)  The Participant shall not be entitled to receive any dividend equivalent payments  with respect to the Shares underlying the RSUs unless and until such RSUs vest.  Within 60  days following the date on which the RSUs vest, the Company will pay the Participant in respect  of each RSUs that has vested, an amount in cash equal to the aggregate amount of cash  dividends that would have been paid in respect of the Shares underlying such vested RSUs had  such Shares been outstanding (as of the applicable record date with respect to the payment of  the related dividend) during the period from the beginning of the Performance Cycle through the  vesting date of such RSUs and the settlement of the underlying shares.      11. Taxes.  The Participant shall be liable for any and all taxes, including withholding  taxes, arising out of this grant, the vesting of RSUs and the issuance of Shares hereunder.    12. Claw-back.  The Participant acknowledges and agrees that the grant of this  Award, the issuance of Shares and the payment of amounts pursuant to dividend equivalent  rights, is subject to the applicable provisions of any claw-back policy implemented by the  Company, whether implemented prior to or after the grant of such awards.    13. Miscellaneous    (a) Neither this Agreement nor the granting or vesting of RSUs shall confer upon the  Participant any right to continue as an officer, director, employee of or consultant to, the  Company or an affiliate, nor shall it interfere in any way with the right of the Company or an  affiliate to terminate Participant’s relationship with the Company at any time and for any reason  whatsoever.    (b) The parties agree to execute such further documents and instruments and to  take such action as may reasonably be necessary to carry out the intent of this Agreement.    (c) This Award shall be governed by the laws of the State of Maryland (without  regard to its choice of law principles) and applicable Federal law.    (d) Except as otherwise provided herein, in any event of any conflict between the  provisions of the Plan and the provisions of this Award, the provisions of the Plan shall govern.      (e) Subject to the terms of the Plan, the Committee has the right to amend this  Agreement, prospectively or retroactively; provided that no such amendment or alteration shall  adversely affect Participant's material rights under this Agreement without Participant's consent  and pursuant to a writing executed by the parties hereto which specifically states that it is  amending this Agreement.     (f) This Agreement and the Plan constitute the entire contract between the parties  hereto with regard to the subject matter hereof and supersede any other agreements,  representations or understandings (whether oral or written and whether express or implied) that  relate to the subject matter hereof.      

 

5     This Agreement has been executed and delivered by the parties as of the date hereof.      BRT APARTMENTS CORP.      By: _________________________        David W. Kalish        Senior Vice President-Finance      ____________________________    Signature of Participant    ____________________________  Name of Participant                                  (22/FINAL BRT performance awards agreement master)    

 

             Exhibit 10.5          EXHIBIT A  Definitions  Capitalized terms used without being defined herein shall have the means ascribed to  such terms by the Plan.    “Additional TSR Units” means the units so denominated at the beginning of this  Agreement.    “AFFO” means adjusted funds from operations as presented in the Company’s filings  with the Securities and Exchange Commission.    “AFFO Units” means the units so denominated at the beginning of this Agreement.  “DDR Event” means the death, Disability or Retirement of the Participant.  “Initial TSR Units” means the units so denominated at the beginning of this Agreement.    “Peer Group” means the FTSE NAREIT Equity Apartment Index, excluding companies  whose primary focus is the provision of housing for college and/or graduate students.    “Performance Criteria” means the criteria described in Section 4 and/or Section 5 of this  Agreement, as applicable.    “Performance Cycle” means the period from July 1, 2022 through June 30, 2025.  “TSR” means total stockholder return as calculated by a third-party selected by the  Committee, which calculation, except as otherwise contemplated herein, shall be made as  customarily calculated for REITS.     “RSUs” means the AFFO Units and the TSR Units.

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