Document:

ulh-ex1013_54.htm

Exhibit 10.13

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

PLEASE READ THIS DOCUMENT CAREFULLY.  IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

This SEPARATION AGREEMENT AND GENERAL RELEASE (“Agreement”), dated as of January 10, 2020, is by and between Jeffrey Rogers (“Employee”), and Universal Management Services, Inc. (the “Company”). 

Recitals:

A.In connection with Employee’s separation from service as an employee of the Company, and in order to promote a smooth and amicable transition of duties, the Company has decided to offer the separation compensation set forth in this Agreement, the receipt and retention of which is conditioned upon Employee’s compliance with the terms and conditions of this Agreement.

B.Accordingly, Employee and the Company agree as follows:

Agreement:

1.Separation. Employee’s separation from service with the Company, and from any other positions or appointments that he may hold by or through the Company and its affiliates, including as an officer or director of any subsidiary of the Company, is effective as of the date of this Agreement (the “Separation Date”). Employee agrees to execute, promptly upon request by the Company or any of its affiliates, any additional documents necessary to effectuate the resignations. After the Separation Date, Employee will no longer be authorized or permitted to incur any expenses, obligations or liabilities on behalf of the Company or its affiliates.

2.Consideration. In consideration of Employee’s release of any and all claims in accordance with Section 4 of this Agreement, and other promises of Employee contained in this Agreement, the Company shall pay to Employee the following consideration, contingent upon Employee’s execution of this Agreement and Employee’s continued full compliance with the terms of this Agreement: 

a.Sixteen (16) weeks of severance pay, at the rate of $12,500.00 per week, less applicable federal, state, and local taxes and other deductions as may be required by law to be made from wage payments to employees, provided that such payments shall commence within 10 days after the expiration of the revocation period set forth in Section 7 of this Agreement; and  

b.the sum of $125,000.00, at the rate of $12,500.00 per week, for ten (10) weeks in exchange for the non-disparagement covenant set forth in Section 8 of this Agreement, for which Employee will be issued a Form 1099, provided that such payments shall commence immediately after the payments set forth in Subsection 2(a) of this Agreement have been completed, and provided further that nothing in this subparagraph is intended to place a limit on the potential damages to which the Company might be entitled in the event of a violation of Section 8.

c.The Board of Directors have granted an additional $100,000 less applicable federal, state, and local taxes and other deductions as may be required by law to be made from wage payments to employees, in addition to the severance obligations under EMPLOYEE’S employment agreement. This is for EMPLOYEE’S discretionary use; extend EMPLOYEE’S separation pay, extend Cobra payments or take a lump sum payment.

3.Consultation. During the period of time that Employee is receiving payments from the Company under Section 2, Employee agrees to be reasonably available for consultation by the Company with no additional remuneration.

    

 

 

4.Waiver and Release. As a material inducement to the Company to enter into this Agreement, Employee, on his or her own behalf and that of his or her heirs, attorneys, agents, administrators, representatives, successors and assigns (collectively, the “Releasing Parties”), voluntarily and knowingly waives, releases, and discharges the Company and its predecessors, successors, subsidiaries, affiliates, shareholders, employees, officers, directors, members, assignees, agents, and attorneys (collectively, the “Releasees”), both when acting in their respective capacities on behalf of the Company and in their individual capacities, from any and all claims, liabilities, demands, and causes of action, known or unknown, fixed or contingent (collectively, “Claims”), that the Releasing Parties may have or claim to have against any of the Releasees, arising out of or related to any matter, event, fact, act, omission, cause or thing which existed, arose, or occurred prior to Employee signing this Agreement. This waiver and release includes, but is not limited, to:

a.Claims arising under any federal, state, or local laws including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, and the Family and Medical Leave Act; 

b.Claims for breach of contract, express or implied, including any Claims for breach of any implied covenant of good faith and fair dealing;

c.any tort Claims, including, without limitation, any Claims for personal injury, harm or damages, whether the result of intentional, unintentional, negligent, reckless, or grossly negligent acts or omissions;

d.any Claims for wrongful discharge or other claims arising out of any legal restrictions on the right to terminate employees; 

e.any Claims for unpaid wages, including, but not limited to, commissions, bonuses, and paid time off; and

	
 
	
f.
	
any Claims for attorneys’ fees or costs.

This waiver and release does not include Claims for alleged breach of this Agreement or for workers compensation benefits. Employee also agrees not to file a lawsuit against any of the Released Parties in connection with the released Claims. Employee agrees that if anyone makes a Claim or undertakes an investigation involving him in any way, Employee waives any and all rights and claims to financial recovery resulting from such Claim or investigation. Employee further represents that Employee has not assigned to any other person any of such Claims, and that Employee has the full right to grant this release. It is agreed that this is a general release and it is to be broadly construed as a release of all Claims, except those that cannot be released by law. By signing this Agreement, Employee acknowledges that Employee is doing so knowingly and voluntarily, that Employee understands that he or she may be releasing Claims he or she may not know about, and that he or she is waiving all rights Employee may have had under any law that is intended to protect Employee from waiving unknown Claims.

5.No Obligation to Rehire. Employee’s separation from employment with the Company is effective as of January 10, 2020, and Employee agrees that the Company is under no obligation to rehire Employee.

6.Independent Determination. Employee understands that Employee has been given a period of 21 days from the date Employee first received this Agreement in which to review and consider it, and that Employee may use as much or as little of this 21-day period as Employee desires. Employee further understands that Employee has the right to discuss all aspects of this Agreement with an attorney of Employee’s choosing and that, although whether or not to consult with an attorney is Employee’s decision, the Company encourages Employee to do so.  By signing this Agreement, Employee acknowledges and agrees that he or she is entering into this Agreement knowingly and voluntarily, that he or she has used as much, if any, of the 21-day period as desired, and that he or she has exercised the right to consult with an attorney to the full extent desired.

  

 

 

7.Revocation. Employee has the right to revoke this Agreement within seven days after signing it.  Revocation can be made only by delivering a written notice of revocation to Peter J. Dwyer, Jr., President HR-1 Corp, 12225 Stephens Road, Suite 100, Warren, Michigan 48089.  For such revocation to be effective, it must be received no later than the close of business on the seventh day after Employee signs this Agreement. This Agreement will not be effective or enforceable until the revocation period has expired without Employee having exercised Employee’s right of revocation.

8.Non-Disclosure and Non-Disparagement. Employee agrees not to disclose confidential, sensitive, or proprietary information concerning the Company obtained by Employee during his employment with the Company. For purposes of this Agreement, “confidential, sensitive, or proprietary” information would include, without limitation, all materials and information (whether written or not) about the services, processes, research, customers, personnel, finances, purchasing, sales, marketing, accounting, costs, pricing, improvements, discoveries, business methods, inventions and other business aspects of the Company and its affiliates which are not generally known and accessible to the public at large or which provide the Company with a competitive advantage. Employee agrees that Employee will not: (a) make any statements to representatives of any press or media, Company employee, government entity, customer or vendor, which is disparaging of the Company, its reputation, or the character, competence or reputation of any officer, director, executive, employee, shareholder or agent of the Company or any of its affiliated entities; (b) directly or indirectly provide information, issue statements, or take any action that would be reasonably likely to damage the Company’s reputation, cause the Company embarrassment or humiliation, or otherwise cause or contribute to the Company being held in disrepute; (c) directly or indirectly seek to cause any person or organization to discontinue or limit their current employment or business relationship with the Company; or (d) encourage or assist others to issue such statements or take such actions prohibited in this Section. In response to inquiries from third parties, Employee and the Company shall confirm only that Employee has separated from the Company on mutually acceptable terms. Employee agrees that the Company also may confirm to third parties Employee’s dates of employment, titles and positions. Notwithstanding anything in this Agreement to the contrary, any confidentiality, non-disclosure, non-disparagement or similar provision in this Agreement does not prohibit or restrict any party under this Agreement from initiating communications directly with, or responding to any inquiry from, or providing testimony before, the SEC, any other self-regulatory organization or any other state or federal regulatory authority, regarding this Agreement or its underlying facts or circumstances.

9.Company Trade Secrets. Employee acknowledges that, to the extent the Company derives independent economic value from any of its confidential, proprietary or sensitive information and takes reasonable measures to maintain its secrecy, such information will be considered a trade secret under applicable law. Employee further acknowledges that under the Defend Trade Secrets Act of 2016, an individual may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. Employee further acknowledges that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer’s trade secrets to the attorney and use the trade secret information in the court proceeding if the individual: (a) files any document containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant to court order.  

10.Return of Consideration. In the event that Employee breaches this Agreement, the Company shall cease making payments to Employee pursuant to Sections 2 and 3 of this Agreement, and Employee shall be required to return to Company any consideration already received by Employee pursuant to Sections 2 and 3 of this Agreement.

11.Priority over Employment Agreement. The consideration set forth in Section 2 of this Agreement supersedes, modifies and replaces any and all payments, rights, and benefits contemplated by Section 8(d) of the Employment Agreement dated as of June 3, 2014 between Employee and the Company (the “Employment Agreement”). This Agreement shall have no effect on Employee’s entitlement to reimbursement for COBRA premiums for medical and dental coverage for a period of six months from the Separation Date. Except as modified by this Agreement, the terms and conditions of the Employment Agreement that were intended to survive termination of employment, including but not limited to Section 5 (Covenant Not to Compete) and Section 6 (No Interference with Employment Relationships) thereof, shall continue in full force and effect and are incorporated by reference into this Agreement.

  

 

 

12.Restricted Stock Agreements. Under the Restricted Stock Bonus Award Agreement dated as of February 22, 2017 between Employee and the Company (the “2017 Award Agreement”), the remaining tranche of 2,500 shares of restricted stock scheduled to vest on March 5, 2020 shall fully vest on the Termination Date, and the shares shall remain subject to the terms of the 2017 Award Agreement. The shares of restricted stock granted to Employee under the Restricted Stock Bonus Award Agreement dated as of February 20, 2019 between Employee and the Company (the “2019 Award Agreement”) are forfeited as of the Separation Date in accordance with the terms of the 2019 Award Agreement.    

13.Miscellaneous. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement. The parties acknowledge and agree that this Agreement does not constitute, is not intended to be, and shall not be construed, interpreted, or treated in any respect as an admission of liability or wrongdoing for any purposes whatsoever. This Agreement contains all of the understandings and agreements between Employee and the Company regarding the subject matter hereof, and supersedes all earlier negotiations and understandings, written or oral. This Agreement may not be modified except by written instrument signed by both Employee and Company. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Michigan. 

14.Representation. Employee represents and agrees that Employee has thoroughly read this Agreement in its entirety; that Employee has had a reasonable time to consider its terms; that Employee fully understands all of its terms; that Employee has not relied upon any representations, promises, or statements, oral or written, that are not set forth in this Agreement; and that Employee has entered into this Agreement voluntarily and upon Employee’s own free will.

Employee agrees to keep the terms, amount, and facts, of this Agreement completely confidential and, unless required to do so by law or court order, Employee will not disclose any information concerning this Agreement to anyone (other than Employee’s immediate family, attorneys and tax advisors, if any, all of whom shall be informed of and bound by this confidentiality provision).  Employee understands that this confidentiality provision is a material part of this Agreement and agrees that, should Employee violate this provision, Employee shall be required to return to Company the consideration received by Employee as set forth in Paragraph 2 of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year indicated above.

 

			
	
EMPLOYEE:
	
 
	
COMPANY:

	
JEFFREY ROGERS
	
 
	
UNIVERSAL MANAGEMENT SERVICES, INC.

	
 
	
 
	
By: HR-1 Corp.

	
 
	
 
	
Its: Authorized Agent

	
 
	
 
	
 

	
/s/ Jeff Rogers 
	
 
	
By: /s/ Pete J. Dwyer, Jr. 

	
 
	
 
	
Name: Peter J. Dwyer, Jr.

	
 
	
 
	
Title: President

	
 
	
 
	
 

	
Date: January 27, 2020           
	
 
	
Date: January 27, 2020Exhibit 4.1

 

Description of Common Stock Registered
Pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended.

 

The following is a description of the capital
stock of CASI Pharmaceuticals, Inc. (the “Company”). This description is based on the Company’s Restated Certificate
of Incorporation (“Certificate of Incorporation”), the Company’s Amended and Restated By-laws (“By-laws”),
and certain provisions of the Delaware General Corporation Law (“DGCL”).  This description is a summary and
is qualified in its entirety by reference to the Certificate of Incorporation and the By-laws.

 

Authorized Shares of Capital Stock

 

The Company is authorized to issue 255,000,000
shares of capital stock consisting of:

 

		·	250,000,000 shares of common stock, $.01 par value per share (the “Common Stock”), and

		·	5,000,000 shares of preferred stock, $1.00 par value per share (“Preferred Stock”).

 

As of December 31, 2019, the Company had one class of securities,
Common Stock, registered under Section 12 of the Securities Exchange Act of 1934, as amended.

 

Common Stock 

 

Common
Stock Outstanding. The outstanding shares of the Common Stock are duly authorized, validly issued, fully paid and
nonassessable.

 

Voting
Rights. Each holder of shares of Common Stock is entitled to one vote for each share held of record on the applicable
record date on all matters submitted to a vote of stockholders.

 

Dividend
Rights. Subject to any preferential dividend rights granted to the holders of any shares of the Preferred Stock
that may at the time be outstanding, holders of the Common Stock are entitled to receive dividends when, as and if declared from
time to time by the Company’s board of directors out of funds legally available therefor.

 

Rights
upon Liquidation. Subject to any preferential liquidation rights granted to the holders of any shares of the Preferred
Stock that may at the time be outstanding, holders of the Common Stock are entitled to share pro rata, upon any liquidation or
dissolution of the Company, in all remaining assets available for distribution to stockholders after payment of or provision for
the Company’s liabilities.

 

Other
Rights. Holders of Common Stock have no preemptive, subscription, redemption or conversion rights. The rights,
preferences and privileges of holders of the 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 the Company may designate and issue in the future.

 

Listing.
The Company’s Common Stock is listed on the Nasdaq Capital Market under the symbol “CASI.”

 

     

     

    

 

Transfer
Agent. The Company’s transfer agent is American Stock Transfer and Trust Company.

 

Anti-Takeover Effects of Certain Provisions of the Certificate
of Incorporation and By-laws

 

The Certificate
of Incorporation and By-laws contain certain provisions that could have the effect of delaying, deterring or preventing another
party from acquiring control of the Company. These provisions and certain provisions of Delaware law, which are summarized below,
are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed, in part,
to encourage persons seeking to acquire control of the Company to negotiate first with our board of directors. The Company believes
that the benefits of increased protection of our potential ability to negotiate more favorable terms with an unfriendly or unsolicited
acquirer outweigh the disadvantages of discouraging a proposal to acquire the Company.

 

Additional
Authorized Shares of Capital Stock.  The additional shares of authorized Common Stock available for issuance under
our Certificate of Incorporation could be issued at such times, under such circumstances and with such terms and conditions as
to impede a change in control.

 

Undesignated
Preferred Stock. Under the Certificate of Incorporation, without further stockholder action, the Company’s board
of directors is authorized, subject to any limitations prescribed by the law of the State of Delaware, to determine the designation
and to fix the number of shares of any series of the undesignated Preferred Stock, and to determine or alter the rights, preferences,
privileges and restrictions granted to or imposed upon any wholly unissued series of undesignated Preferred Stock, including provisions
with respect to dividends, liquidation, conversion, full, limited, or no voting powers, redemption and other rights and is further
authorized to increase or decrease (but not below the number of shares of that series then outstanding) the number of shares of
that series subsequent to the issue of shares of that series.

 

Depending
upon the terms of the Preferred Stock established by the board of directors, any or all series of Preferred Stock could have preference
over the Common Stock with respect to dividends and other distributions and upon liquidation of our Company or could have voting
or conversion rights that could adversely affect the holders of the outstanding Common Stock. In addition, the Preferred Stock
could delay, defer or prevent a change of control of the Company. 

 

Classified
Board of Directors. The Company’s board of directors is divided into three
classes, one class of which is elected each year by our stockholders, and the directors in each class will serve for a three-year
term. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of the Company as it
is more difficult and time-consuming for stockholders to replace a majority of the directors on a classified board.

 

Requirements
for Advance Notification of Stockholder Nominations and Proposals. The Company’s By-laws establish advance notice
procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations
made by or at the direction of our board of directors or a committee of our board of directors. These provisions may have the effect
of precluding the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may also
discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors
or otherwise attempting to obtain control of the Company.

 

    	 	2	 

     

    

 

Special
Meetings of Stockholders. Special meetings of stockholders may be called only by the chairman of the board of directors
within 10 days after the receipt of a written request of a majority of the board of directors.

 

Delaware
General Corporation Law Section 203. As a corporation organized under the laws of the State of Delaware, the Company
is subject to Section 203 of the DGCL which restricts certain “business combinations” between the Company and
an “interested stockholder” or that stockholder’s affiliates or associates for a period of three years following
the date on which the stockholder becomes an “interested stockholder.” The restrictions do not apply if:

 

		·	prior to an interested stockholder becoming such, the board of directors of the Company approves either the business combination
or the transaction in which the stockholder becomes an interested stockholder;

 

		·	upon consummation of the transaction in which the stockholder becomes an interested stockholder, the interested stockholder
owns at least 85% of the outstanding voting stock of the Company at the time the transaction commenced, subject to certain exceptions;
or

 

		·	on or after the date an interested stockholder becomes such, the business combination is both approved by the board of directors
of the Company and authorized at an annual or special meeting of the Company’s stockholders (and not by written consent)
by the affirmative vote of at least 66 2/3% of the outstanding voting stock not owned by the interested stockholder.

 

For purposes of
Section 203 of the DGCL, a “business combination” includes mergers, asset sales or other transactions resulting
in a financial benefit to the stockholder. An “interested stockholder” is a person who, together with affiliates and
associates, owns (or within three years did own) 15% or more of a corporation’s voting stock. The statute could have the
effect of delaying, deferring or preventing a change in control of the Company’s or reducing the price that some investors
might be willing to pay in the future for the Common Stock.

 

    	 	3

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