Document:

Exhibit 10.16

 

Private &
Confidential

 

DATE

 

Dear                                      

 

Letter of appointment

 

I write on behalf of VELTI  PLC (incorporated in Jersey with registered
number 103899) (the Company)
to confirm the arrangements we have discussed with regards to the terms of your
appointment as an independent non-executive director.

 

This letter sets out the main terms of your appointment. We have also
agreed that your Letter of Appointment dated                            
with Velti plc (incorporated in England and Wales with registered number
5552480) (Old Velti) will terminate with effect
from 1 January 2010. It is agreed between us that this is a contract for
services and is not a contract of employment.

 

1.                                      APPOINTMENT

 

1.1                                 Subject to the remaining provisions of this letter,
your appointment shall continue unless terminated by either party giving to the
other at least three months’ prior written notice, provided that the
termination date shall be no earlier than 25 April 2010.

 

1.2                                 Your appointment is subject to the articles of
association of the Company, as amended from time to time (Articles). Nothing in this
letter shall be taken to exclude or vary the terms of the Articles as they
apply to you as a director of the Company. Continuation of your appointment is
subject to your continued satisfactory performance and re-election by the
shareholders at forthcoming annual general meetings (AGMs).
If you are not re-elected to your position as a director of the Company by the
shareholders, your appointment shall terminate automatically and with immediate
effect.

 

1.3                                 Notwithstanding paragraph 1.1 and paragraph 1.2, the
Company may terminate your appointment with immediate effect:

 

(a)                        in accordance with the Articles; or

 

(b)                       in compliance with the Companies (Jersey) Law 1991  (as amended); or

 

(c)                        in
the event that you commit any serious or repeated breach or non-observance of
your obligations to the Company (which include an obligation not to breach your
fiduciary duties); or

 

(d)                       in
the event that you are guilty of any fraud or dishonesty or acted in any manner
which, in the opinion of the Company, brings or is likely to bring you or the
Company into disrepute or is materially adverse to the interests of the
Company; or

 

1

 

(e)                        in
the event that you are in breach of any
share dealing code of the Company for the time being in force at any time when
the shares of the Company are listed or traded on the Alternative Investment
Market of the London Stock Exchange (AIM); or

 

(f)                          in
the event that you are convicted of any
criminal offence (other than an offence under the road traffic legislation in
the United Kingdom or elsewhere for which non-custodial penalties are imposed);
or

 

(g)                       in
the event that you are declared bankrupt or have made an arrangement with or
for the benefit of your creditors, or if you have a county court administration
order made against you under the UK County Court Act 1984; or

 

(h)                       in
the event that you are disqualified from acting as a director.

 

1.4                                 On termination of the appointment, you shall only be
entitled to accrued fees as at the date of termination together with
reimbursement of any expenses properly incurred prior to that date. The
termination of the appointment of itself will not give rise to any additional
right to compensation.

 

2.                                      TIME COMMITMENT

 

2.1                                 By accepting this appointment, you confirm that you
are able to allocate sufficient time to meet the expectations of your role.
This will include attendance at meetings of the board of directors of the
Company as from time to time constituted (Board) of
which, unless otherwise agreed by the Board, two must be attended in person,
the AGM, and attendance at any committees to which you are appointed. In
addition, you will be required to consider all relevant papers prior to each
meeting.

 

2.2                                 You should obtain the agreement of the chief executive
before accepting additional commitments that might affect the time you are able
to devote to your role as a non-executive director of the Company.

 

3.                                      ROLE AND DUTIES

 

3.1                                 As a non-executive director you shall have the same
general legal responsibilities to the Company as any other director and shall
be required to take decisions in the best interests of the Company. The Board
as a whole is collectively responsible for the success of the Company. The
Board’s role is to:

 

(a)                        provide
entrepreneurial leadership of the Company within a framework of prudent and
effective controls which enable risk to be assessed and managed;

 

(b)                       set
the Company’s strategic aims, ensure that the necessary financial and human
resources are in place for the Company to meet its objectives, and review
management performance; and

 

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(c)                        set
the Company’s values and standards and ensure that its obligations to its
shareholders and others are understood and met.

 

3.2                                 In your role as a non-executive director, you shall
also be required to:

 

(a)                        constructively
challenge and contribute to the development of strategy;

 

(b)                       scrutinise
the performance of management in meeting agreed goals and objectives and
monitor the reporting of performance;

 

(c)                        satisfy
yourself that financial information is accurate and that financial controls and
systems of risk management are robust and defensible;

 

(d)                       be
responsible for determining appropriate levels of remuneration of executive
directors and have a prime role in appointing and, where necessary, removing
senior management and in succession planning;

 

(e)                        chair
or serve on committees of the Board as agreed with the Board;

 

(f)                          at
all times comply with the Articles;

 

(g)                       abide
by your fiduciary duties as a director of the Company;

 

(h)                       diligently
perform your duties and use your best endeavours to promote, protect, develop
and extend the business of the Company;

 

(i)                           immediately
report your own wrongdoing or the wrongdoing or proposed wrongdoing of any
other employee or director of the Company of which you become aware to the
chief executive;

 

(j)                           comply
with the terms of the share dealing code adopted by the Company from time to
time;

 

(k)                        ensure
effective communication with shareholders; and

 

(l)                           accept
responsibility publicly and where necessary in writing when required to do so
under relevant legislation or regulation applicable to the Company.

 

3.3                                 You shall be entitled to request all relevant
information about the Company’s affairs as is reasonably necessary in order to
enable you to discharge your duties.

 

4.                                      FEES

 

You shall be paid
a fee of £                          a year which shall be
satisfied by cash and by the issue of the Company’s shares. The fee shall be
subject to an annual review by the Board. The Company shall reimburse you for
all reasonable and properly documented expenses that you incur in performing
the duties of your office.

 

5.                                      INDEPENDENT LEGAL ADVICE

 

In some circumstances you may consider that you need
professional advice in the furtherance of your duties as a director and it may
be appropriate for you to seek advice from independent advisors at the Company’s
expense. A copy of the Board’s agreed 

 

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procedure under which directors may obtain such
independent advice is available from the Company. The Company shall reimburse
the full cost of expenditure incurred in accordance with its policy.

 

6.                                      OUTSIDE INTERESTS

 

The relationship between you and the Company shall be
that of office-holder and not one of employment. During the period of your
Appointment, you shall be free to take up employment or hold office with any
other company, business entity or organisation provided that such employment or
office does not impede, or put you in breach of, your obligations under this
letter. It is
accepted and acknowledged that you have business interests other than those of
the Company and have declared any conflicts that are apparent at present. If
you become aware of any potential conflicts of interest, these should be
disclosed to the chief executive and company secretary as soon as you become
aware of them and, where appropriate, prior authorisation of the Board should
be obtained.

 

7.                                      CONFIDENTIALITY

 

7.1                                 You acknowledge that during your appointment you will
be exposed to information about the Company’s business and the business of
other companies within the Company’s group (Group Companies)
and that of the Company’s and the Group Companies’ suppliers and customers
which amounts to a trade secret, is confidential or is commercially sensitive
and which may not be readily available to others engaged in a similar business
to that of the Company or any of the Group Companies or to the general public (Confidential Information) and which if disclosed will be
liable to cause significant harm to the Company or such Group Companies.

 

7.2                                 You agree that you will not during the period of your
appointment or any time after the cessation thereof, directly or indirectly use
for your own purposes or for any purposes other than those of the Company or
any Group Company (for any reason and in any manner) or divulge or communicate
to any person, firm, company or organisation except to those officials of any
Group Company whose province it is to know the same any Confidential
Information.

 

7.3                                 Your attention is also drawn to the requirements under
both legislation and regulation as to the disclosure of inside information.
Consequently you should avoid making any statements that might risk a breach of
these requirements without prior clearance from the chief executive or company
secretary.

 

7.4                                 The restrictions contained in this Paragraph 7 do not
apply to:

 

(a)                                  any
disclosure authorised by the Board or required in the ordinary and proper
course of your appointment or as required by the order of a court of competent
jurisdiction or any appropriate regulatory authority or otherwise required by
law; or

 

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(b)                                 any
information which is in the public domain otherwise than as a result of a
breach by you of this Paragraph.

 

7.5                                 You agree and acknowledge that title and all
copyrights, design rights, database rights and other intellectual property
rights whatsoever in all works, including correspondence, reports and documents
you prepare as a result of the performance of your duties as a non-executive
director on behalf of the Company, will at all times be the absolute property
of the Company and you hereby assign these to the Company with the intention
that all such rights shall vest in the Company immediately on the creation,
devising or making of each of the works to which they relate and hereby
unconditionally and irrevocably waive all rights arising under Chapter IV of Part I
of the UK Copyright Designs and Patents Act 1988 (as amended from time to time)
and any other applicable legislation in respect of all copyright works so
created.

 

7.6                                 On termination of your appointment, for whatever
reason, you must promptly return to the Company or its authorised
representatives all property (including without limitation) all documents,
listings, keys, correspondence, security or charge cards or discs, tapes,
credit cards, mobile phone, computer, computer peripherals, communications
equipment, software, electronic documents, data files or other equipment, items
or information in your possession or under your control which are the property
of the Company or any Group Companies or which relate in any way to the
business or affairs or customers of the Company or any Group Companies and all
copies thereof regardless of the medium on which such copies are stored or
held. In respect of any such items or information held on any computer software
data files or other equipment belonging to you, you are required to delete any
such items and information and all copies immediately on termination of your
appointment.

 

8.                                      REVIEW PROCESS

 

The performance
of individual directors, the whole Board and its committees is evaluated
annually. If, in the interim, there are any matters which cause you concern
about your role you should discuss them with the chief executive as soon as you
can.

 

9.                                      INSURANCE

 

The Company has
directors ́ and officers ́ liability insurance and it intends to maintain such
cover for the full term of your appointment. A copy of the policy document is available
from the Company. Any cover is subject to the rules of the policy from
time to time in force.

 

10.                               DATA PROTECTION

 

10.1                           By signing this letter you consent to the Company
holding and processing information about you for legal, personnel,
administrative and management purposes and in 

 

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particular to the processing of any sensitive personal data (as defined in the Data Protection
(Jersey) Law 2005) including, as appropriate:

 

(a)                        information
about your physical or mental health or condition in order to monitor sick
leave and take decisions as to your fitness for work; or

 

(b)                       your
racial or ethnic origin or religious or similar beliefs in order to monitor
compliance with equal opportunities legislation; or

 

(c)                        information
relating to any criminal proceedings in which you have been involved for
insurance purposes and in order to comply with legal requirements and
obligations to third parties; or

 

(d)                       any
other sensitive data to be processed.

 

10.2                           You consent to the Company making such information
available to any of its Group Companies, those who provide products or services
to the Company (such as advisers and payroll administrators), regulatory
authorities, potential or future employers, governmental or quasi-governmental
organisations and potential purchasers of the Company or the business in which
you work.

 

10.3                           You also consent to the transfer of such information
to the Company’s business contacts outside the European Economic Area in order
to further its business interests.

 

11.                               THIRD PARTY RIGHTS

 

The UK Contracts (Rights of Third Parties) Act 1999
shall not apply to this letter. No person other than you and the Company shall
have any rights under this letter and the terms of this letter shall not be
enforceable by any person other than you and the Company.

 

12.                               GOVERNING LAW/JURISDICTION

 

This letter of appointment and the rights and
obligations under it shall be governed by the Law of England and Wales. You
(and the Company) agree that any dispute or claim arising in connection with
this letter shall be governed by the non-exclusive jurisdiction of the courts
of England and Wales.

 

 

Please indicate your acceptance of these terms by signing and returning
to the attached copy of this letter.

 

Yours sincerely

 

 

	
   

  	
   

  
	
  For and on behalf of VELTI  PLC

  	
   

  

 

 

I agree to the above terms of appointment as a non-executive director

 

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SIGNED
AND DELIVERED AS A DEED ON
                                                   

 

	
   

  	
   

  	
   

  	
   

  
	
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7Exhibit 10.17

 

 

August 19,
2009

 

PERSONAL
AND CONFIDENTIAL

 

Wilson
Cheung

 

Dear
Wilson:

 

We
are very pleased to offer you a full time position with Velti PLC (“Velti” or
the “Company”) as a Chief Financial Officer
(CFO), based in our San Francisco office reporting to the Chief
Executive Officer. This offer letter summarizes the initial terms of your
employment, which we expect to commence as of October 5,
2009.

 

1)         Position; Duties.
 As CFO,
you will undertake and assume the responsibilities, and have those
powers and authorities, which are customarily associated with the position of CFO.  As such, you will be assigned a
board observer seat and will also be part of the 4-person executive committee
making strategic management decisions for the Company. You agree that you will
devote your full working time and best efforts to the performance of your
duties on behalf of the Company and will comply with the written policies of
the Company. Furthermore, you agree that during the first six (6) months
of your at-will employment you will be expected to spend at least 3 weeks per
month in either our London or Athens offices. Upon the completion of the
initial 6 month period of your employment, the CEO will evaluate and determine
whether your base will remain in the US or will be transferred to London. In
the event that your transfer is deemed necessary by Velti, we will amend your
package to include the following:

 

a)              Reimbursement of moving expenses not to exceed
$20,000

b)             Annual total schooling allowance of $15,000

c)              Annual housing allowance of $50,000

d)             Business class tickets for you and your family to
visit your home in San Francisco twice a year

e)              Tax equalization per Velti’s tax equalization policy

 

These
additional benefits shall be subject to the terms, conditions and restrictions
of Velti’s applicable corporate policies, as in effect from time to time. Prior
to atransfer, we will furnish you with all applicable documentation effecting
the amendment to your package, including the details of Velti’s applicable
corporate policies and the associated payment/reimbursement terms.

 

2)         Base Salary.  Your initial base salary will be at the rate
of US $25,000 per month (or annualized
rate of $300,000), paid in
accordance with the customary payroll practices of the Company as are
established or modified from time to time.

 

3)         Equity.  In connection with your employment you will
participate in Velti’s annual equity incentive program, as governed by the
Velti Share Incentive Plan (the “Plan”). As outlined in the Plan, all awards
require the final approval of the remuneration committee, and contain both
performance-based and two year cliff vesting conditions. During your
employment, the target value of your annual deferred shares award will
be in the amount of $150,000 (payable
in shares based on our then-current closing share price on the date of grant),
subject to satisfaction of the

 

 

applicable
vesting conditions. Notwithstanding the foregoing, for 2009, your grant will be
pro-rated for the remainder of 2009 and therefore you will be eligible to
receive shares worth up to $37,500, subject to the regular performance metrics
established for all Velti 2009 deferred shares award recipients and your
continued employment with Velti until April, 30 2011.

 

4)           Sign on Bonus.  Within 30 days of your first day of employment
with the Company, you will receive a deferred shares award for 20,000 shares as
a sign on equity bonus, subject to the terms and conditions of the Plan, and
subject to the vesting condition of your continued employment until April 30,
2011.

 

5)           Annual Bonus.  During your employment with the Company, you
will be eligible for an annual incentive bonus, based on achievement of
performance metrics to be determined by the Company no later than ninety (90)
days after the start of each fiscal year in which it is to be earned; provided,
however, for the purposes of the 2009 fiscal year, you and your manager shall
establish the performance metrics for your annual incentive bonus within ninety
(90) days of your first day of employment. Each annual incentive bonus shall
have a target of up to $100,000 worth
of Velti stock (to be calculated at the then-current closing share price as of
the April 30th following the year in which the bonus is
earned, and your entitlement thereof shall be subject to satisfaction of the
applicable performance metrics for such bonus and your continued employment on
the date(s) of payment (April 30th of each fiscal
year). Notwithstanding the foregoing, for 2009, your bonus potential will be
pro-rated to the amount of $30,000, payable in Velti stock on April 30,
2010. You hereby acknowledge and agree that you will not be permitted to sell
or otherwise transfer the shares you will receive in April 2010 (if any)
until April 2011.

 

6)           MBO Bonus.  In the event that Velti successfully
consummates an initial public offering of its captial stock in excess of
$15,000,000 USD on either the NYSE or NASDAQ markets during the term of your
employment, then upon such offering and the listing of the Velti stock on either
the NYSE or NASDAQ exchange, you will immediately receive fully vested Velti
shares worth $250,000, with the exact number of shares to be calculated based
on the then-current closing share price on the date of the initial public
offering. You hereby acknowledge and agree that you will not be permitted to
sell or otherwise transfer the shares you receive pursuant to this Section 6
for one year following the date of grant.

 

7)           Benefits.  You will be eligible to participate in
benefits programs to the same extent as, and subject to the same terms,
conditions, and limitations applicable to, other Company employees. Your
participation in the Company’s benefit plans shall be subject to the terms and
conditions of the applicable plan documents and generally applicable Company
policies. The Company may alter, add to, modify, or terminate its employee
benefits plans at any time it determines in its sole judgment. All expense
reimbursements shall be subject to the Company’s expense reimbursement policies
and practices as established or modified from time to time. You will be
eligible for up to fifteen (15) days of vacation per each full calendar year of
employment, to be taken and accrued in accordance with the Company’s vacation
policies and practices.

 

8)           At-Will Employment.
 Your employment with the Company will be
on an “at-will” basis, which means that the Company may terminate your
employment relationship at any time, for any or no reason, with or without
Cause, and with or without prior notice, subject to the provisions set forth in
Section 9 of this Agreement. You may voluntarily terminate your employment
with the Company for any or no reason upon hundred and eighty (180) days
advance written notice to the Company’s Board of Directors, and you acknowledge
this 180-day notice period is a material term of this Agreement.

 

 

9)           Severance.  Notwithstanding the at-will relationship, if
your employment is terminated by the Company without Cause (and other than as a
result of your death or disability), and such termination is deemed to be a “separation
from service” (within the meaning of Section 409A of the Internal Revenue
Code of 1986, as amended, and any successor statute, regulation and guidance
thereto (“Section 409A”)), you will be eligible to receive the following
severance benefits for a period of 6 months (the “Severance Period”) following
your termination: (a) severance payments at your monthly base salary rate
in effect as of your date of termination, payable in equal installments during
the Severance Period in accordance with the Company’s payroll practices at the
time; and (b) subject to, and contingent upon, your timely election to
continue group health plan benefits pursuant to the terms, conditions and
requirements of COBRA (if and only to the extent applicable) and/or any
applicable state law governing continuation coverage of group health plan
benefits, and your continued eligibility for such benefits, payment by the
Company of the monthly insurance premiums necessary to continue such group
health coverage for you and/or your dependants (if and as applicable) during
the Severance Period. Your eligibility to receive the foregoing severance
benefits is conditioned upon (x) your entering into and not revoking a
general release of all claims, in a form acceptable to the Company in its sole
discretion, within the time period required by the Company, but in no event
later than 45 days following your termination date, and (y) your
compliance with the obligations under your Restrictive Covenant Agreement (as
defined in Section 10 below). In the event you breach the obligations
under your Restrictive Covenant Agreement, you will have no right to receive,
and the Company shall not pay you, any severance benefits following the date of
such breach. Such cessation of payments shall be in addition to, and not in
lieu of, any and all other remedies, whether at law or in equity, available to
the Company for such breach.

 

For
purposes of this Agreement, “Cause” means: (i) your conviction of, guilty
or no contest plea to, or public confession of guilt to, a felony; (ii) an
act or omission by you which constitutes fraud, gross negligence or willful
misconduct, or dishonesty which is materially injurious to the Company’s
business, prospects or reputation; (iii) a failure by you to substantially
perform your duties or failure to comply with any lawful directive of the Board
consistent with your position and duties; (iv) your material breach of
this Agreement or your Restrictive Covenant Agreement; or (v) the taking
by you of any action on behalf of the Company or any of its affiliates without
appropriate authority to take such action, which either singularly or combined
with any other action(s) is materially harmful to the Company or any of
its affiliates.

 

Notwithstanding
any other provision with respect to the timing of payments under this Section 9,
if, at the time of your termination, you are deemed to be a “specified employee”
(within the meaning of Section 409A) of the Company, then only to the
extent necessary to comply with the requirements of Section 409A, any
payments to which you may become entitled under this Section 9 which are
subject to Section 409A (and not otherwise exempt from its application)
will be withheld until the first business day of the seventh month following
the termination of your employment hereunder, at which time you shall be paid
an aggregate amount equal to withheld payments otherwise due to you under the
terms of this Section 9 during the initial 6-month period following your
termination.

 

10)         Employment
Conditions.  Your
employment with the Company is conditioned upon: (a) on or before your
start date, your execution of the Company’s Employee Nondisclosure and
Invention Assignment Agreement, in a form acceptable to the Company in its sole
discretion, which provides for standard confidentiality, non-solicitation and
assignment of inventions obligations in favor of the Company (your “Restrictive
Covenant Agreement”); and (b) for purposes of federal immigration law, on
or before your start date, your provision to the Company of documentary
evidence of your identity and eligibility for employment in the United States.
Your failure to timely

 

 

execute
such Restrictive Covenant Agreement under (a) above and/or provide
adequate documentation under (b) above will result in your immediate
termination for Cause.

 

11)       No Further Obligations.  Except as set forth in this Agreement, the
Company shall have no other obligations to you upon the cessation of your
employment other than for any accrued but unused vacation through the
termination date, and reimbursement for any outstanding business expenses
incurred by you and approved by the Company in accordance with its expense
reimbursement policies and practices as established or modified from time to
time, which payments shall be made to you on or before 60 days following your
termination.

 

12)       Taxes.  All payments and benefits described herein
will be subject to applicable federal, state, and local tax withholdings. You
hereby acknowledge and agree that the Company makes no representations or
warranties regarding the tax treatment or tax consequences of any compensation,
benefits or other payments under this Agreement or any other
agreement or arrangement with the Company, including, without limitation, by
operation of Section 409A.

 

13)       No Conflicting
Obligations.  You represent
and warrant that your employment with the Company does not and will not breach
any agreement entered into by you prior to employment with the Company (i.e.
you have not entered into any agreements with previous employers or third
parties that are in conflict with your obligations to the Company).

 

14)       Miscellaneous.  This Agreement and your Restrictive Covenant
Agreement set forth the complete and sole understanding regarding the terms of
your employment with the Company and supersede and render null and void any and
all other agreements, negotiations, discussions, proposals or understandings,
whether written or oral, previously entered into, discussed, or considered by
the parties.

 

 

Sincerely
yours,

 

 

	
  /s/
  Maria Maragoudaki

  	
   

  	
   

  

Maria
Maragoudaki

Director
of Human Resources

 

Your
signature below will evidence your agreement with the terms and conditions set
forth herein. This offer is open for you to accept until August 31, 2009 at which time it will
be deemed to be withdrawn.

 

	
  /s/
  Wilson Cheung

  	
   

  	
  8/20/09

  
	
  Wilson
  Cheung

  	
   

  	
  Date

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