Document:

Exhibit 10.1

 

 

 

June 1, 2022

 

Michael P. Linacre

1 Rolling Brook Drive

Saratoga Springs, NY 12866

 

Dear Mike:

 

On behalf of Innovative Solutions & Support, Inc. ("IS&S"
or "the Company"), I am very pleased to extend to you our offer of employment on the following terms:

 

Position:
You will serve as Chief Financial Officer of IS&S. Your expected starting date of employment is July 11, 2022. You
will report directly to IS&S's Chief Executive Officer (the "CEO") and will have such authority, duties and responsibilities
as are customarily associated with the positions of Chief Financial Officer. Your principal place of employment will be at our offices
in Exton, Pennsylvania, subject to such travel as may be required in the performance of your duties and responsibilities. During your
employment with IS&S, you agree to devote your full business time and best efforts to the performance of your duties and responsibilities.

 

Base Salary
and Bonus Opportunity: Your starting annual base salary ("Base Salary") will be $230,000, pro-rated from your start
date, and will be paid to you in accordance with IS&S's normal payroll practices. Your Base Salary shall be subject to review by IS&S's
CEO in conjunction with the Board of Directors (the "Board") on an annual basis and may be adjusted by them in their sole discretion
as approved by the Board. You will be eligible for a cash bonus for 2022 with a target amount equal to 30% of your Base Salary (pro-rated
based on your start date). The actual amount of bonus earned will be determined by the CEO and Board in their sole discretion based on
their assessment of your performance and contributions. Your target cash bonus opportunity for subsequent years shall be determined by
the CEO and Board in their sole discretion.

 

Equity
Awards: Upon commencement of your employment and subject to the terms and conditions of the IS&S 2019 Stock-Based Incentive
Compensation Plan (the "Plan") and the applicable award agreements, IS&S will grant you the number of time-based restricted
shares of IS&S common stock equal to $50,000 in value, determined by dividing $50,000 by IS&S's closing stock price on the first
day of your employment. Your restricted stock award shall vest 25% on the first anniversary of the grant date and in equal quarterly
installments thereafter, such that 100% of the award shall be vested as of the fourth anniversary of the grant date.

 

Benefit
Plans: You will be eligible to participate in IS&S's employee benefit plans and programs on the same terms and conditions
as apply to IS&S's executive officers generally, as in effect from time to time. Schedule A contains a list of the employee benefit
plans and programs currently maintained by IS&S. IS&S reserves the right to amend or terminate any such plan or program at any
time.

 

     

     

    

 

Relocation
Benefits: You will be eligible for our Relocation Assistance Program as set forth on Schedule B. If you voluntarily resign
from IS&S or are terminated for Cause prior to the completion of one year of employment service, you will reimburse the Company for
all relocation related costs paid by the Company through that date. If you voluntarily resign from IS&S or are terminated for Cause
(as defined below) after one year of employment but prior to the completion of two years of employment, you will reimburse the Company
for all relocation related costs paid by the Company, reduced pro rata from full reimbursement to no reimbursement during that second
year, based on the actual number of days of employment with the Company during the second year of employment. You agree that the Company
may deduct any such payment from any and all outstanding payments due you. Any amounts owed by you thereafter will be paid within thirty
(30) days after your final day of employment.

 

Termination
and Severance: Your employment with IS&S is at-will, meaning that either you or IS&S may terminate your employment
at any time and for any reason. Upon termination of your employment for any reason, you shall be entitled to payment of the following
items: (i) unpaid Base Salary earned prior to your termination date; (ii) unused vacation time accrued prior to your termination
date; and (iii) vested benefits earned under any employee benefit plan or program, in accordance with the terms and conditions thereof
In addition, if your employment is terminated by IS&S without Cause (other than due to your death or disability), then, subject to
your execution and non-revocation of a general release of claims in favor of IS&S and its affiliates within 60 days following your
termination date and your continued compliance with the Restrictive Covenant Agreement set forth on Schedule C and the Confidentiality, Intellectual
Property, and Insider Information Obligations agreement set forth on Schedule D, you shall be entitled to the following payments and benefits:
(i) continuation of your then-current Base Salary for a 6 month period, payable in accordance with IS&S's normal payroll practices
beginning with the first payroll period after the release becomes effective or such later date as may be required to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the "Code"); and (ii) a pro-rata bonus for the year of termination determined
based on the actual bonus, if any, you would have been paid for such year absent such termination, payable on the latest of (A) the
date on which IS&S pays bonuses for such year generally, (B) the date on which the release becomes effective and (C) such
later date as may be required to comply with Code Section 409A.

 

Background
Check and Drug Test: This offer is contingent on satisfactory completion of the Company's standard background checks and a
drug test.

 

Definitions:
For purposes of this letter, "Cause" means (i) indictment, conviction of, or the entry of a plea of guilty or
no contest to, (A) a felony or (B) any crime involving moral turpitude or dishonesty, (ii) any intentional action or an
act of fraud, dishonesty, or theft affecting the property, reputation, or business of IS&S or its affiliates, (iii) willful and
persistent neglect of your duties and responsibilities, (iv) failure or refusal to carry out the lawful directives of the Board,
(v) diverting any business opportunity of IS&S or its affiliates for your own personal gain, (vi) omission of or misrepresentation
of a significant fact on your employment application and/or resume, or (vii) misuse of alcohol or drugs affecting your work performance.

 

     

     

    

 

Section 409A:
This letter is intended to comply with Code Section 409A (to the extent applicable) and the parties hereto agree to interpret,
apply and administer this letter in the least restrictive manner necessary to comply therewith and without resulting in any increase in
the amounts owed hereunder by IS&S. Notwithstanding any other provision of this letter to the contrary, if you are a "specified
employee" within the meaning of Code Section 409A, and a payment or benefit provided for in this letter would be subject to
additional tax under Code Section 409A if such payment or benefit is paid within six months after your "separation from service"
(within the meaning of Code Section 409A), then such payment or benefit required under this letter shall not be paid (or commence)
during the six-month period immediately following your separation from service except as provided in the immediately following sentence.
In such an event, any payments or benefits that would otherwise have been made or provided during such six-month period and which would
have incurred such additional tax under Code Section 409A shall instead be paid to you in a lump-sum cash payment on the earlier
of (i) the first regular payroll date of the seventh month following your separation from service or (ii) the 10th business
day following your death. Notwithstanding anything herein to the contrary, neither IS&S nor any of its affiliates shall have any liability
to you or to any other person if the payments and benefits provided in this letter that are intended to be exempt from or compliant with
Code Section 409A are not so exempt or compliant. Your right to receive installment payments hereunder shall be treated as a right
to receive a series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct
payment for purposes of Code Section 409A.

 

Confidentiality
and Restrictive Covenants: In consideration for your employment by IS&S, you agree to become a party to the Restrictive
Covenant Agreement set forth on Schedule C and the Confidentiality, Intellectual Property and Insider Information Obligations agreement
(the "Confidentiality Agreement") set forth on Schedule D as of your start date. You represent and warrant that you are not
subject to any non-compete, non-disclosure, or similar agreement or restrictive covenant that would prevent you from accepting this position
or that would materially impair your ability to perform the duties of this position. You also acknowledge that (i) your work for
IS&S will give you access to confidential affairs and propriety information of IS&S and its affiliates; (ii) the restrictive
covenants contained in the Restrictive Covenant Agreement and the Confidentiality Agreement are essential to the business and goodwill
of IS&S and its affiliates; and (iii) IS&S would not have made you this offer of employment but for your agreement to become
party to the Restrictive Covenant Agreement and the Confidentiality Agreement.

 

Ethical
Standards: You will be expected to observe the highest standards of ethical, personal, and professional conduct and to comply
with IS&S's policies, including its Code of Business Conduct, a copy of which has been provided to you.

 

Additional
Terms: The terms of your employment may in the future be amended, but only by a writing which is signed by both you and,
on behalf of IS&S, a duly authorized officer. This letter constitutes the entire agreement between the parties, and supersedes
all prior agreements and understandings, relating to the subject matter of this letter. If any portion or provision of this letter
shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this letter, or
the application of such portion or provision in circumstances other than those as to which it is so declared illegal or
unenforceable, shall not be affected thereby, and each portion and provision of this letter shall be valid and enforceable to the
fullest extent permitted by law. This letter may be executed in one or more counterparts, any one of which need not contain the
signatures of more than one party, but all such counterparts taken together, when delivered, will constitute one and the same
instrument.

 

     

     

    

 

Governing
Law: This letter, including the schedules attached hereto, shall be governed in accordance with the laws of the Commonwealth
of Pennsylvania, without regard to the principles of conflicts of laws thereof. Any legal proceeding arising out of or relating to your
employment will be instituted in federal court in the Commonwealth of Pennsylvania (or, if such proceeding may not be brought in federal
court, in the state courts located in Chester County, Pennsylvania), and you and IS&S hereby consent to the personal and exclusive
jurisdiction of such court(s) and hereby waive any objection(s) you or it may have to personal jurisdiction, the laying of venue
of any such proceeding and any claim or defense of inconvenient forum. If these employment terms are satisfactory to you, please
indicate your acceptance by signing below and returning one copy of the signed offer letter to me. This offer will expire unless accepted
in writing on or before Thursday, June 2, 2022.

 

Mike, we look forward to your joining IS&S and are confident you
will be a strong leader of the Company.

 

Sincerely,

 

	/s/ Shahram Askarpour	 

Shahram Askarpour

Chief Executive Officer

 

Accepted:

 

	/s/ Michael P. Linacre	 

Michael P. LinacreExhibit 10.4

        

       

        

      AMENDING AGREEMENT TO AMENDED AND RESTATED ASSIGNMENT AND ASSUMPTION AGREEMENT

       

      THIS AGREEMENT is made as of July 12, 2022

       

      AMONG:

       

      TILRAY BRANDS, INC., a corporation existing under the laws of the State of Delaware;

       

      (“Tilray”)

       

      - and -

       

      HEXO CORP., a company existing under the laws of the Province of Ontario;

       

      (“HEXO”);

       

      - and -

       

      HT INVESTMENTS MA LLC, a limited liability corporation existing under the laws of the State of Delaware

       

      (“HTI” and collectively with Tilray and HEXO, the “Parties”).

       

      All capitalized terms used in this amending agreement (this “Agreement”) but not defined herein shall have
        the meaning attributed to such terms in the Transaction Agreement.

      

      

      RECITALS:

      

      

      	A.	
              On April 11, 2022, Tilray, HEXO and HTI (collectively, the “Parties”) entered into a transaction agreement (the “Transaction Agreement”),

                pursuant to which, among other things, HEXO and HTI agreed to amend the terms of certain senior secured convertible notes of HEXO due May 1, 2023 (as amended, the “Amended and Restated Note”);

            

      

      

      	B.	
              On April 11, 2022, the Parties entered into an assignment and assumption agreement (the “Assignment and Assumption Agreement”), pursuant to which Tilray agreed to
                assume from HTI, and HTI agreed to assign, transfer and sell to Tilray all of its rights, title and interest under, the Amended and Restated Note; and 

            

      

      

      	C.	
              On June 14, 2022, the Parties entered into an amending agreement to the Transaction Agreement (the “Transaction Agreement Amendment”) and an amended and restated
                Assignment and Assumption Agreement (the “Amended and Restated Assignment and Assumption Agreement”); and 

            

      

      

      	D.	
              The Parties wish to enter into this Agreement to amend certain provisions of the Amended and Restated Assignment and Assumption Agreement as contemplated herein.

            

      

      

      
        
          

      

      
      Now therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby confirm,
        acknowledge and agree as follows:

      

      

      	1.	
              Section 3(f) of the Amended and Restated Assignment and Assumption Agreement is hereby deleted in its entirety and replaced with the following:

            

      

      

      “To the actual knowledge of the Seller, no filing with, or authorization, approval, consent, notice, license, order, registration, qualification,
        decree or other action of, any court, governmental authority or agency or any other Person is necessary to be filed, obtained, recorded, notified, or otherwise applied for by the Seller in connection with (i) the assignment, transfer and sale by
        the Seller of the Amended and Restated Note and the Security Documents, (ii) the authorization, execution, delivery and performance by the Seller of this Agreement or (iii) the consummation by the Seller of the transactions contemplated hereby,
        except such as have been, or at the Closing Date will have been, obtained and are in full force and effect as of the Closing Date.” 

      

      

      	2.	
              Section 3(g) of the Amended and Restated assignment and Assumption Agreement is hereby deleted in its entirety and replaced with the following:

            

      

      

      “The Seller has good and marketable title to the Amended and Restated Note, free and clear of any Encumbrance, restriction on transferability,
        and the Seller has the full power and lawful authority and the right to assign, transfer and sell the Amended and Restated Note to the Purchaser and the consummation of the transactions contemplated by this Agreement shall not cause the Amended and
        Restated Note to be subject to any Encumbrance.  The transfer and assignment of the Security Documents to the Purchaser has been duly authorized by the Seller and the Seller has no actual knowledge of any restriction or prohibition on the
        transferability or assignability of the Security Documents to the Purchaser in accordance herewith and therewith.”

      

      

      	3.	
              The parties hereto acknowledge that HTI has advised each of Tilray and HEXO that no internal or external legal counsel of HTI has (i) conducted any lien searches in connection with the transfer of the Security Documents contemplated by
                the Amended and Restated Assignment and Assumption Agreement, or (ii) reviewed any of the documents prepared by representatives of Tilray or HEXO to effect the transfer of the Security Documents contemplated by the Amended and Restated
                Assignment and Assumption Agreement to the extent such review would relate to the effectiveness of such transfer of the Security Documents or whether such transfer is permitted under applicable law, rules or regulations related thereto.

            

      

      

      	4.	
              The Amended and Restated Assignment and Assumption Agreement, as amended pursuant to Sections 1 and 2 of this Agreement, shall replace the Amended and Restated Assignment and Assumption Agreement attached as Schedule B to the Transaction
                Agreement Amendment in its entirety.

            

      

      

      
        2

        
          

      

      	5.	
              Except for the amendments contemplated in this Agreement, no other amendments to the Assignment and Assumption Agreement or the Transaction Agreement will be made by the Parties pursuant to this Agreement, and the Assignment and
                Assumption Agreement and the Transaction Agreement shall otherwise remain outstanding on identical terms and conditions.

            

      

      

      	6.	
              This Agreement may be executed in any number of counterparts (including counterparts by facsimile) and all such counterparts taken together shall be deemed to constitute one and the same instrument. The Parties shall be entitled to rely
                upon delivery of an executed facsimile or similar executed electronic copy of this Agreement, and such facsimile or similar executed electronic copy shall be legally effective to create a valid and binding agreement between the Parties.

            

      

      

      	7.	
              This Agreement will be governed by and interpreted and enforced in accordance with the laws of the State of Delaware
                  and the federal laws of the United States of America applicable therein. Each Party irrevocably attorns and submits to the exclusive jurisdiction of the Delaware courts situated in Wilmington, Delaware and waives objection to the venue of
                  any proceeding in such court or that such court provides an inconvenient forum. 

            

      

      

      	8.	
              This Agreement becomes effective only when executed by each of the Parties. After that time, it will be binding upon and enure to the benefit of the Parties and their respective successors and permitted assigns.

            

      

      

      [Signature page follows]

      

      

      
        3

        
          

      

      IN WITNESS WHEREOF Tilray, HEXO and HTI have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

       

      
        	
                 

              	
                TILRAY BRANDS, INC.

              
	
                 

              	

              	

              
	
                 

              	By:	

              	/s/ Carl Merton
	
                 

              	

              	
                Authorized Signing Officer

              
	
                 

              	

              	

              
	 	 	 
	
                 

              	
                HEXO CORP.

              
	
                 

              	

              	

              
	
                 

              	
                By:

              	

              	 /s/ Joelle Maurais
	
                 

              	

              	
                Authorized Signing Officer

              
	
                 

              	

              	

              
	 	 	 
	
                 

              	HT INVESTMENTS MA LLC

              
	
                 

              	By:  High Trail Capital LP, its investment manager

              
	
                 

              	

              	

              
	
                 

              	By:	

              	/s/ Eric Helenek
	
                 

              	

              	
                Authorized Signing Officer

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