Document:

EX-10.40

 Exhibit 10.40 
 WILLIAM J. SANTIAGO / AMENDED OFFER OF EMPLOYMENT 
 AMENDED OFFER OF EMPLOYMENT OF
WILLIAM J. SANTIAGO 
 This Amended Offer of Employment of William J. Santiago is made September 16, 2011 at the City of Columbus, County
of Franklin, State of Ohio, by Intellinetics, Inc., 2190 Dividend Drive, Columbus, Ohio 43228 to William J. Santiago, 4260 Hobbs Landing Drive W, Dublin, Ohio, 43017. 
 We are pleased to offer you employment as President and Chief Executive Officer, effective September 16, 2011. We know that your experience, competence, values and enthusiasm will be a positive
factor in the future growth and success of IntellineticsTM. 
  

	1.	Position Overview and Primary Responsibilities: 

 As President and Chief Executive Officer your responsibilities will include the following: 
  

	 	1.1	Develop a strategic plan to advance the company’s mission and objectives and to promote revenue, profitability, and growth as an organization.

  

	 	1.2	Oversee company operations to insure production efficiency, quality, service, and cost-effective management of resources. 

 

	 	1.3	Plan, develop, and implement strategies for generating resources and/or revenues for the company. 

 

	 	1.4	Identify acquisition and merger opportunities and direct implementation activities. 

 

	 	1.5	Approve company operational procedures, policies, and standards 

  

	 	1.6	Review activity reports and financial statements to determine progress and status in attaining objectives and revise objectives and plans in accordance with current
conditions. 

  

	 	1.7	Evaluate performance of executives for compliance with established policies and objectives of the company and contributions in attaining objectives.

  

	 	1.8	Promote the company through written articles and personal appearances at conferences and on radio and TV. 

 

	 	1.9	Represent the company at legislative sessions, committee meetings, and at formal functions. 

 

	 	1.10	Promote the company to local, regional, national, and international constituencies. 

 

	 	1.11	Build a fundraising network using personal contacts, direct mail, special events, and foundation support. 

 

	 	1.12	Present company report at Annual Stockholder and Board of Director meetings. 

 

	 	1.13	Direct company planning and policy-making committees. 

  

	 	1.14	Oversee foreign operations to include evaluating operating and financial performance. 

 

	 	1.15	And other duties as assigned. 

  

	2.	Remuneration will consist of: Salary and Benefits. Additional Remuneration may include Profit Sharing, Commissions and Bonuses at the sole discretion of Intellinetics.

  

	 	2.1	Salary: The position will start at the rate of Two Hundred and Four Thousand Dollars ($204,000.00) per year, payable biweekly during each month that this agreement
shall be in force. 

  

	 	2.3	Benefits: 

  

	 	2.3.1	Opportunity to participate in a 401 (k) profit sharing plan subject to plan eligibility requirements. 

  
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 WILLIAM J. SANTIAGO / AMENDED OFFER OF EMPLOYMENT 

 

	 	2.3.2	Discretionary Employer contribution to selected Company health care plan. Amount of Employer contribution reviewed and announced annually by Employer.

  

	 	2.3.3	Twenty (20) business days paid vacation per annum. Vacation days to be scheduled at mutually agreed upon times. Vacation is earned and accrued on a monthly basis
with a maximum annual carryover of five (5) unused vacation days. 

  

	 	2.3.4	Cell phone to be paid for by Employer. 

  

	 	2.3.5	Company Installed Intellinetics phone-line at residence if deemed necessary. 

 

	 	2.3.6	Reimbursement of all reasonable, and documented business expenses. Mileage for business travel will be reimbursed at the published rate. 

 

	 	2.3.7	Five (5) personal days per annum. Personal days accrue monthly calculated on an annual proportional basis; accrued unused personal days shall not be carried over
into the succeeding year. 

  

	 	2.3.8	Your use of on-premise Exercise Facility upon execution of Liability and Waiver Form. 

 

	 	2.3.9	Paid Company Holidays; schedule announced by Employer annually. 

  

	 	2.3.10 	Discretionary Employer contribution for Employee professional development and/or continuing education. 

 

	3.	Profit sharing and bonuses may become a component of your compensation at the sole discretion of Employer. 

You or Intellinetics may terminate this employment relationship at any time for cause or without cause by giving written notice. The
parties stipulate and agree that Employee is an “At Will” employee under Ohio law. The parties further agree that the Employee’s status shall not change except as set forth in writing signed by both parties to this Offer. 

This Amended Offer of Employment and the Amended Employment Agreement dated September 16, 2011 constitute all of our agreements and understandings
regarding your employment. There are no other oral or written agreements regarding your employment and no one else is authorized to make any other agreements. Ohio law shall govern this agreement and any employment relationship that may be formed
between the undersigned parties at any time. 
  

									
	Intellinetics, Inc.:	 		 	Employee: William J. Santiago
					
		 	 /s/    Matthew L. Chretien
	 		 		 	 /s/    William J. Santiago

		 	Matthew L. Chretien, EVP	 		 		 	William J. Santiago, President & CEO
					
		 	 Date:         
9/16/11                                        
                    
	 		 		 	Date:         
9/16/11                                        
                    

  

			
		
		 	/s/    A. Michael Chretien
		 	 A. Michael Chretien, Chairman of the Board

		
		 	
Date:          9/16/11            
                                         
       

  
 Page 2 of 2Form of Deferred Stock Agreement

 Exhibit 10.1 
 PHILIP MORRIS INTERNATIONAL INC. 
 2008 PERFORMANCE INCENTIVE PLAN

 (as amended and restated effective February 11, 2010) 

DEFERRED STOCK AGREEMENT 
 FOR PHILIP MORRIS INTERNATIONAL INC. COMMON STOCK 
 (February 9, 2012)

 PHILIP MORRIS INTERNATIONAL INC. (the “Company”), a Virginia corporation, hereby grants to the employee
identified in the Award Statement (the “Employee”) under the Philip Morris International Inc. 2008 Performance Incentive Plan (as amended and restated effective February 11, 2010) (the “Plan”), a Deferred Stock Award (the
“Award”) dated February 9, 2012 (the “Award Date”) with respect to the number of shares set forth in the Award Statement (the “Deferred Shares”) of the Common Stock of the Company (the “Common Stock”),
all in accordance with and subject to the following terms and conditions: 
 1. Restrictions. Subject to Section 2
below, the restrictions on the Deferred Shares shall lapse and the Deferred Shares shall vest on the Vesting Date set forth in the Award Statement (the “Vesting Date”), provided that the Employee remains an employee of the PMI Group during
the entire period commencing on the Award Date and ending on the Vesting Date, and provided further that the Employee has complied with all applicable provisions of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended
(“HSR”). 
 2. Termination of Employment Before Vesting Date. In the event of the termination of the
Employee’s employment with the PMI Group prior to the Vesting Date due to death, Disability or Normal Retirement, the restrictions on the Deferred Shares shall lapse and the Deferred Shares shall become fully vested on the date of death,
Disability, or Normal Retirement. 
 Subject to the provisions of section 6(a) of the Plan, if the Employee’s employment
with the PMI Group is terminated for any reason other than death, Disability, or Normal Retirement prior to the Vesting Date, the Employee shall forfeit all rights to the Deferred Shares. Notwithstanding the foregoing and except as provided in
section 6(a) of the Plan, upon the termination of an Employee’s employment with the PMI Group, the Compensation Committee of the Board of Directors of the Company may, in its sole discretion, waive the restrictions on, and the vesting
requirements for, the Deferred Shares. 
 3. Voting and Dividend Rights. The Employee does not have the right to vote the
Deferred Shares or receive dividends prior to the date, if any, such Deferred Shares are paid to the Employee in the form of Common Stock pursuant to the terms hereof. However, unless otherwise determined by the Committee, the Employee shall receive
cash payments (less applicable withholding taxes) in lieu of dividends otherwise payable with respect to shares of Common Stock equal in number to the Deferred Shares that have not been forfeited, as such dividends are paid. 

4. Transfer Restrictions. This Award and the Deferred Shares are non-transferable and may not be assigned, hypothecated or
otherwise pledged and shall not be subject to execution, attachment or similar process. Upon any attempt to effect any such disposition, or upon the levy of any such process, the Award shall immediately become null and void and the Deferred Shares
shall be forfeited. These restrictions shall not apply, however, to any payments received pursuant to Section 7 below. 

5. Withholding Taxes. The Company is authorized to satisfy the actual minimum statutory withholding taxes arising from the
granting, vesting, or payment of this Award, as the case may be, by deducting the number of Deferred Shares having an aggregate value equal to the amount 

 
of withholding taxes due from the total number of Deferred Shares awarded, vested, paid, or otherwise becoming subject to current taxation. The Company is also authorized to satisfy the actual
withholding taxes arising from the granting or vesting of this Award, or hypothetical withholding tax amounts if the Employee is covered under a Company tax equalization policy, as the case may be, by the remittance of the required amounts from any
proceeds realized upon the open-market sale of the Common Stock received in payment of vested Deferred Shares by the Employee. Deferred Shares deducted from this Award in satisfaction of actual minimum withholding tax requirements shall be valued at
the Fair Market Value of the Common Stock received in payment of vested Deferred Shares on the date as of which the amount giving rise to the withholding requirement first became includible in the gross income of the Employee under applicable tax
laws. If the Employee is covered by a Company tax equalization policy, the Employee also agrees to pay to the Company any additional hypothetical tax obligation calculated and paid under the terms and conditions of such tax equalization policy.

 6. Death of Employee. If any of the Deferred Shares shall vest upon the death of the Employee, any Common Stock
received in payment of the vested Deferred Shares shall be registered in the name of the estate of the Employee except that, to the extent permitted by the Compensation Committee, if the Company shall have received in writing a beneficiary
designation, the Common Stock shall be registered in the name of the designated beneficiary. 
 7. Payment of Deferred
Shares. Each Deferred Share granted pursuant to this Award represents an unfunded and unsecured promise of the Company to issue to the Employee, on or as soon as practicable after the date the Deferred Share becomes fully vested pursuant to
Section 1 or 2 and otherwise subject to the terms of this Agreement, the value of one share of the Common Stock. Except as otherwise expressly provided in the Statement and subject to the terms of this Agreement, such issuance shall be made to
the Employee (or, in the event of his or her death to the Employee’s estate or beneficiary as provided above) in the form of Common Stock as soon as practicable following the full vesting of the Deferred Share pursuant to Section 1 or 2,
provided, however, that if the Company determines that settlement in the form of Common Stock is impractical or impermissible under the laws of the Employee’s country of residence, the Deferred Shares will be settled in the form of cash, and
provided further that any applicable waiting period under HSR has expired or been terminated. 
 8. Special Payment
Provisions. Notwithstanding anything in this Agreement to the contrary, if the Employee is subject to US Federal income tax on any part of the payment of the Deferred Shares, and will become eligible for Normal Retirement (A) for Deferred
Shares with a Vesting Date between January 1 and March 15, before the calendar year preceding the Vesting Date and (B) for Deferred Shares with a Vesting Date after March 15, before the calendar year in which such Vesting Date
occurs, then the Deferred Shares shall be subject to the following provisions of this Section 8. If the Employee is a “specified employee” within the meaning of section 409A of the Internal Revenue Code and the regulations thereunder
(“Code section 409A”), any payment of Deferred Shares under Section 7 that is on account of his separation from service and is scheduled to be paid within six months after such separation from service shall accrue without interest and
shall be paid on the first day of the seventh month beginning after the date of the Participant’s separation from service or, if earlier, within fifteen days after the appointment of the personal representative or executor of the
Participant’s estate following the Participant’s death. In the event of a “Change in Control” under section 6(c) of the Plan that is not also a “change in control event” with the meaning of Treas. Reg.
§1.409A-3(i)(5)(i), the Deferred Shares shall vest as set forth in section 6(a) of the Plan, but shall not be paid upon such Change in Control as provided by section 6(a) of the Plan, and shall instead be paid at the time the Deferred Shares
would otherwise be paid pursuant to this Agreement. References to termination of employment and separation from service shall be interpreted to mean a separation from service, within the meaning of Code section 409A, with the

  
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Company and all of its affiliates treated as a single employer under Code section 409A. This Agreement shall be construed in a manner consistent with Code section 409A. 

9. Board Authorization in the Event of Restatement. Notwithstanding anything in this Agreement to the contrary, if the
Board of Directors of the Company or an appropriate Committee of the Board determines that, as a result of fraud, misconduct, a restatement of the Company’s financial statements, or a significant write-off not in the ordinary course affecting
the Company’s financial statements, an Employee has received more compensation in connection with this Award than would have been paid absent the fraud, misconduct, write-off or incorrect financial statement, the Board or Committee, in its
discretion, shall take such action with respect to this Award as it deems necessary or appropriate to address the events that gave rise to the fraud, misconduct, write-off or restatement and to prevent its recurrence. Such action may include, to the
extent permitted by applicable law, causing the partial or full cancellation of this Award and, with respect to Deferred Shares that have vested, requiring the Employee to repay to the Company the partial or full Fair Market Value of the Award
determined at the time of vesting. The Employee agrees by accepting this Award that the Board or Committee may make such a cancellation, impose such a repayment obligation, or take other necessary or appropriate action in such circumstances.

 10. Other Terms and Definitions. The terms and provisions of the Plan (a copy of which will be furnished to the
Employee upon written request to the Office of the Secretary, Philip Morris International Inc., 120 Park Avenue, New York, New York 10017) are incorporated herein by reference. To the extent any provision of this Award is inconsistent or in conflict
with any term or provision of the Plan, the Plan shall govern. Capitalized terms not otherwise defined herein have the meaning set forth in the Plan. Subject to the provisions of section 6(a) of the Plan, in the event of any merger, share exchange,
reorganization, consolidation, recapitalization, reclassification, distribution, stock dividend, stock split, reverse stock split, split-up, spin-off, issuance of rights or warrants or other similar transaction or event affecting the Common Stock
after the date of this Award, the Board of Directors of the Company is authorized, to the extent it deems appropriate, to make adjustments to the number and kind of shares of stock subject to this Award, including the substitution of equity
interests in other entities involved in such transactions, to provide for cash payments in lieu of Deferred Shares, and to determine whether continued employment with any entity resulting from such a transaction will or will not be treated as
continued employment with the PMI Group, in each case subject to any Board or Committee action specifically addressing any such adjustments, cash payments, or continued employment treatment. 

For purposes of this Agreement, (a) the term “Disability” means permanent and total disability as determined under
procedures established by the Company for purposes of the Plan, and (b) the term “Normal Retirement” means retirement from active employment under a pension plan of any member of the PMI Group or under an employment contract with any
member of the PMI Group on or after the date specified as the normal retirement age in the pension plan or employment contract, if any, under which the Employee is at that time accruing pension benefits for his or her current service (or, in the
absence of a specified normal retirement age, the age at which pension benefits under such plan or contract become payable without reduction for early commencement and without any requirement of a particular period of prior service). In any case in
which (i) the meaning of “Normal Retirement” is uncertain under the definition contained in the prior sentence or (ii) a termination of employment at or after age 65 would not otherwise constitute “Normal Retirement,”
an Employee’s termination of employment shall be treated as a “Normal Retirement” under such circumstances as the Committee, in its sole discretion, deems equivalent to retirement. “PMI Group” means the Company and each of
its subsidiaries and affiliates. Generally, for purposes of this Agreement, (x) a “subsidiary” includes only any company in which the Company, directly or indirectly, has a beneficial ownership interest of greater than 50 percent and
(y) an “affiliate” includes only any company that (A) has a beneficial ownership interest, directly or indirectly, in the Company of greater than 50 percent or (B) is under common control with the Company through a parent
company 

  
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that, directly or indirectly, has a beneficial ownership interest of greater than 50 percent in both the Company and the affiliate. 

IN WITNESS WHEREOF, this Deferred Stock Agreement has been duly executed as of February 9, 2012. 

 

	
	PHILIP MORRIS INTERNATIONAL INC.
	  
 /s/ JERRY
WHITSON

	Jerry Whitson
	Deputy General Counsel and Corporate Secretary
	Philip Morris International Inc.

  
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