Document:

ex_102096.htm

Exhibit 10.48

 

 

 

NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

Effective January 1, 2018

 

 1.      Purpose. The purpose of NovaBay Pharmaceuticals, Inc. (hereinafter referred to as “NovaBay” or the “Company) Non-Employee Director Compensation Plan (the “Plan”) is to advance the interests of NovaBay and its shareholders by closely aligning the interests of the Non-Employee Directors with the Company and its shareholders. This Plan requires the payment of the annually established compensation payable to Non-Employee Directors for their service to be in cash and stock options to purchase the Company’s Common Stock (“Options”). Options issuable under this Plan shall be from the shareholder approved 2017 Omnibus Incentive Plan.

 

 2.      Administration. The Compensation Committee of the Board (the “Committee”) shall administer the Plan. The Committee shall, subject to the provisions of the Plan, have the power to construe the Plan, to determine all questions arising thereunder, and to adopt and amend such rules and regulations for the administration of the Plan, as it may deem desirable. Any decisions of the Committee in the administration of the Plan, as described herein, shall be final and conclusive. The Committee may authorize any one or more of its members or any officer of the Company to execute and deliver documents on behalf of the Committee. No member of the Committee shall be liable for anything done or omitted to be done by him or her or by any other member of the Board in connection with the Plan, except for his or her own willful misconduct or as expressly provided by statute. 

   

3.      Participation; Amount of Non-Employee Director Compensation. The Committee shall annually approve the amount of compensation payable for services to be performed by Non-Employee Directors. Effective January 1, 2018 such fees shall be payable only in cash as follows: 

 

	 	
			a.

				
			Cash Compensation

			

 

	
			Status

				
			Compensation

				
			Comment

			
	 	 	 
	
			Non-Employee Director

				
			$30,000 per year

				
			Paid Quarterly

			
	 	 	 
	
			Chairman of the Comp Committee

				
			$10,000 per year

				
			Paid Quarterly

			
	 	 	 
	
			Chairman of the Audit Committee

				
			$12,000 per year

				
			Paid Quarterly

			
	 	 	 
	
			Chairman of the N&CG Committee

				
			$8,000 per year

				
			Paid Quarterly

			
	 	 	 
	
			Member of the Audit Committee

				
			$6,000 per year

				
			Paid Quarterly

			
	 	 	 
	
			Member of the Comp or N&CG

				
			$5,000 per year

				
			Paid Quarterly

			
	 	 	 
	
			Lead Independent Director

				
			$20,000 per year

				
			Paid Quarterly

			

 

 

 

 

	
			4. 

				
			Payment of Non-Employee Director Compensation. 

			

 

Each Non-Employee Director shall be paid the cash compensation payable to such Non-Employee Director as determined pursuant to Section 3 above on the first business day of the calendar quarter for such quarter.

 

In addition to the above cash compensation, each Non-Employee Director shall receive an annual stock option grant of 20,000 shares, granted at the Company’s Annual Meeting of Stockholders. To be eligible to receive the annual stock option grant, the director must be a current member of the Board. Newly elected, or re-elected members, are eligible for the annual grant. If a Board member is retiring or is not re-elected at the Annual Meeting, he/she is not eligible for the annual grant. Vesting of the stock option awards shall be monthly over the following 12 months.

 

	
			5. 

				
			Miscellaneous Provisions. 

			

 

(a) Neither the Plan nor any action taken hereunder shall be construed as giving any Non-Employee Director any right to be elected or re-elected as a director of the Company. 

 

(b) A participant’s rights and interest under the Plan may not be assigned or transferred, hypothecated, or encumbered in whole or in part either directly or by operation of law or otherwise (except in the event of a participant’s death, by will, or the laws of descent and distribution), including, but not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy, or in any other manner, and no such right or interest of any participant in the Plan shall be subject to any obligation or liability of such participant. 

 

(c) The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of the Non-Employee Director’s compensation.

 

(d) The provisions of this Plan shall be governed by and construed in accordance with the laws of the State of California. 

 

(e) Headings are given to the sections of this Plan solely as a convenience to facilitate reference. Such headings, numbering, and paragraphing shall not in any case be deemed in any way material or relevant to the construction of this Plan or any provisions thereof. The use of the singular shall also include within its meaning the plural, where appropriate, and vice versa. 

 

	
			6. 

				
			Termination. This Plan shall terminate upon the earlier of the following dates or events to occur: 

			

 

(a) upon the adoption of a resolution of the Committee and approved by the Board terminating the Plan; or

 

(b) December 31, 2018.

 

2Exhibit

Exhibit 10.1

December 18, 2017

Bernice Bell
c/o AGNC Mortgage Management, LLC

VIA ELECTRONIC MAIL

Dear Bernie:

I am pleased to notify you regarding some changes to the terms and conditions of your employment. This letter amends the terms of your employment agreement dated December 1, 2015 and revised July 1, 2016 (collectively, the “Original Letter”) and will expire if not accepted in writing prior to the close of business on December 27, 2017. Effective March 31, 2018, your title will be Senior Vice President and Chief Financial Officer of AGNC Investment Corp. and you will continue reporting to Peter Federico. Your title at AGNC Mortgage Management, LLC (the “Company”) will continue to be Senior Vice President and Chief Financial Officer.

If you accept, then effective January 1, 2018, your total rewards package from the Company will include the following:

		
	1.
	Semi-monthly salary of $18,750, which is equivalent to an annual salary of $450,000.

		
	2.
	Continued participation in the Company’s cash bonus program, which will allow you to earn an annual bonus of two-thirds of your annual base salary (the “Target Bonus”) for the period commencing January 1, 2018.  Any portion of the Target Bonus to which you become entitled for a calendar year would typically be paid by March 15 of the following year. Bonuses will continue to be based on a combination of (i) the overall performance of the Company and its affiliates and (ii) your individual performance on a variety of measures, and remain subject to the complete discretion of Company management and the Board of Managers. 

		
	3.
	Your continued eligibility to participate in an equity-based awards programs of the Company and/or AGNC Investment Corp. (“AGNC”) will be targeted at two-thirds of your annual base salary in the aggregate, commencing with grants made in 2019.  

Please note that all equity awards will be subject to the terms and conditions of the applicable plan documents and award agreements thereunder, and in the event of any conflict between this letter and such plan documents and award agreements, the terms of the plan documents and award agreements will control.  Without limiting the foregoing, all equity awards are subject to approval by the Board of Managers of the Company or the Board of Directors of AGNC, as applicable.

		
	4.
	In the event that you are involuntarily separated from service by the Company without cause (as defined below), you will be entitled to a severance payment equal to your base salary and Target Bonus at the time of separation payable in a lump sum (the “Severance Payment”) as soon as practicable (and in no event more than sixty (60) days) following your separation date. Your receipt of the Severance Payment is contingent on your signing a general release of claims no more than (60) days following your separation date in a form reasonable satisfactory to the Company. The form will be provided to you on or as soon as possible (and in all events within 15 days) after the date of your separation from service.

For purposes of this letter, “cause” shall be deemed to exist if you: (a) commit or engage in an act of fraud, embezzlement, sexual harassment, dishonesty or theft in connection with your duties for the Company; (b) are convicted of, or plead nolo contendere with respect to, an act of criminal misconduct, 

December 18, 2017
Page 2

involving any financial crime or an act of moral turpitude; (c) engage in an act of gross negligence or willful failure to perform your duties or responsibilities; and/or (d) materially breach or violate any Company employment policy, including its Code of Ethics.

		
	5.
	Continued participation in the Company’s Benefits program: AGNC currently pays 100% of the cost of medical, dental, and vision benefits for full-time employees and their dependents.

		
	6.
	The same entitlement to vacation and sick leave as described in your Original Letter. 

I hope this general description helps you understand some of the important terms and conditions of your employment at the Company. This letter is not to be construed as an agreement of future employment, and your employment will be at will such that either party may terminate employment for any or no reason, with or without cause. Please note further that all amounts payable to you as an employee are subject to applicable withholding.

You will also continue to be subject to certain reporting requirements with regard to your personal investing activities and the Company’s Code of Ethics and Conduct.

In addition, by signing below, you agree that during your employment by the Company and the one (1) year period beginning on your separation from service with the Company, you will not, whether for your own benefit or for the benefit of any other person, directly or indirectly, communicate with any employee of the Company, AGNC of any of their affiliates in an effort to solicit, induce or attempt to solicit or induce such employee to terminate employment with the company or accept employment elsewhere.

Except for the terms provided in this letter, your Original Letter remains in full force and effect.

We appreciate your contributions to the Company during your time as an employee, and believe you will continue to be an important member our team. If you have any questions please feel free to call us at any time. 

Best regards,

/s/ Peter Federico

Peter Federico                        
Executive Vice President and Treasurer
AGNC Mortgage Management, LLC    

Agreed and accepted this 14th day of December, 2017.
	
		
	/s/ Bernice E. Bell

	Bernice Bell

July 1, 2016
Page 2

July 1, 2016
PERSONAL AND CONFIDENTIAL
Bernice Bell 
American Capital Mortgage Management, LLC
Two Bethesda Metro Center, 14th Floor
Bethesda, MD 20814

Dear Bernie:
In connection with the transactions contemplated by the Purchase and Sale Agreement, dated as of May 23, 2016, by and among American Capital Asset Management, LLC, American Capital Mortgage Management, LLC (the “Company”), American Capital, Ltd. (“ACAS”) and American Capital Agency Corp. (“AGNC”), you and the Company hereby agree to the following changes to the Employment Letter, dated as of December 1, 2015, by and between the Company and you (the “Employment Letter”).

1.Notwithstanding anything contained in your Employment Letter to the contrary, as of the date hereof, your titles shall be Senior Vice President and Chief Accounting Officer of AGNC and Senior Vice President and Chief Financial Officer of American Capital AGNC Management, LLC, and you shall report to the Executive Vice President and Chief Financial Officer of AGNC.

2.Each reference to the “Board of Managers” in your Employment Letter shall be deemed to be a reference to the “Board of Directors of American Capital Agency Corp. or its designee”.

3.Each reference to “American Capital, Ltd.” in your Employment Letter shall be deemed to be a reference to “American Capital Agency Corp.”

4.With respect to any award that the Company is obligated to provide to you (whether by your Employment Letter or otherwise) pursuant to the American Capital Mortgage Management, LLC Performance Incentive Plan – AGNC, the American Capital Mortgage Management, LLC Performance Incentive Plan – MTGE or any other similar plan (whether payable in shares of stock of ACAS, AGNC, American Capital Mortgage Investment Corp. or otherwise), the Company may (in the discretion of the Board of Directors of AGNC or its designee), in lieu thereof, provide (a) a substitute cash award, which shall be granted solely pursuant to the terms and conditions of a comparable cash incentive plan, or (b) a substitute equity award, which shall be granted solely pursuant to the terms and conditions of an equity incentive plan (but only if such a plan has received all required corporate approvals, including, if required, approval by the stockholders of AGNC).  Any such substitute cash award or substitute equity award shall (i) have the same cash value as the corresponding replaced award, (ii) have the same or shorter vesting schedule as the corresponding replaced award, and (iii) provide for the accrual and payment of dividends (or a cash award of like value) in a manner comparable to the accrual and payment of dividends under the corresponding replaced award.

    

July 1, 2016
Page 2

Very truly yours,
AMERICAN CAPITAL MORTGAGE MANAGEMENT, LLC

By: ___/s/ Gary Kain_______________ 
      Name: Gary Kain
      Title:   Chief Executive Officer and
                  President

Accepted and Agreed:

By: /s/ Bernice Bell    
       Bernice Bell

    

December 1, 2015
                        
Via E-mail

Bernie Bell 
[ADDRESS REDACTED]

Dear Bernie:

I am pleased to notify you regarding some changes to the terms and conditions of your employment.  Effective January 1, 2016, your titles will be Senior Vice President and Chief Financial Officer of American Capital Mortgage Management, LLC (the “Company” or “ACMM”), where you will continue reporting to John Erickson. 

If you accept, then effective January 1, 2016, your total rewards package from the Company will initially include the following:

		
	1.
	Semi-monthly salary of $16,666.67, which is equivalent to an annual salary of $400,000. 

		
	2.
	Continued participation in the Company’s cash bonus program, which will allow you to earn an annual bonus of 50% of your annual base salary (the “Target Bonus”). Under our bonus program, participants may be eligible to receive quarterly payments representing 12.5% (1/8) of their Target Bonus paid in the first three quarters. Such quarterly payments are at the discretion of Company management and its Board of Managers. Any unpaid portion of the Target Bonus may be paid by March 15 of the following year. Bonuses will be based on both the overall performance of the Company and your individual performance on a variety of measures, and remain subject to the complete discretion of Company management and the Board of Managers.  Notwithstanding the foregoing, assuming you are still employed by the Company at the time year-end bonuses for 2015 would normally be paid, you will be entitled to a cumulative annual bonus for 2015 (including prior quarterly payments) of no less than $151,725.  

		
	3.
	Continued participation in either or both of the American Capital Agency Management, LLC Performance Incentive Plan – MTGE (the “MTGE PIP”) or the American Capital Agency Management, LLC Performance Incentive Plan – AGNC (the “AGNC PIP,” and with the MTGE PIP, the “PIPs”)).  

Please note that all equity compensation awards are subject to the terms and conditions of the applicable plan document(s) and award agreements thereunder.  Without limiting the foregoing, all awards are subject to approval by the Board of Managers of the Company.
 
		
	4.
	In the event that you are involuntarily separated from service by the Company without cause (as defined below), you will be entitled to a severance payment equal to $600,000, payable in a lump sum (the “Severance Payment”) as soon as practicable (and in no event more than 

December 1, 2015 
Page 2

sixty (60) days) following your separation date.  Your receipt of the Severance Payment is contingent on your signing a general release of claims no more than sixty (60) days following your separation date in a form reasonably satisfactory to the Company.  The form will be provided to you on or as soon as possible (and in all events within 15 days) after the date of your separation from service.  

For purposes of this letter, “cause” shall be deemed to exist if you: (a) commit or engage in an act of fraud, embezzlement, sexual harassment, dishonesty or theft in connection with your duties for the Company; (b) are convicted of, or plead nolo contendere with respect to, an act of criminal misconduct, involving any financial crime or an act of moral turpitude; (c) engage in an act of gross negligence or willful failure to perform your duties or responsibilities; and/or (d) materially breach or violate any Company employment policy, including its Code of Ethics.

		
	5.
	Participation in the Company’s Benefits program, under which ACMM currently pays 100% of the cost of medical, dental, and vision benefits for full-time employees and their dependents. 

		
	6.
	Five (5) weeks of vacation, subject to the Company’s Vacation Policy.

I hope this general description helps you understand some of the important terms and conditions of your continued employment at the Company. This letter is not to be construed as an agreement of future employment, and your employment will continue to be at will. Please note further that all amounts payable to you as an employee are subject to applicable withholding.

Note further that you will be subject to certain reporting requirements with regard to your personal investing activities and the Company’s Code of Ethics and Conduct.

In addition, by signing below, you agree that during your employment by the Company and the one (1) year period beginning on your separation from service with the Company, you will not, whether for your own benefit or for the benefit of any other person, directly or indirectly, communicate with any employee of the Company or any of its affiliates, including American Capital, Ltd., in an effort to solicit, induce, or attempt to solicit or induce such employee to terminate employment with the Company or accept employment elsewhere.

We appreciate your contributions to the Company during your time as an employee, and look forward to continuing to work with you.  If you have any questions please feel free to call us at any time. 

Best regards,

/s/ Gary Kain

Gary Kain
President and Chief Investment Officer
American Capital Mortgage Management, LLC    

Agreed and accepted this 1st day of December, 2015.
____/s/ Bernie Bell____________________
Bernie Bell

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