Document:

amwl-ex1039_142.htm

 

Exhibit 10.39

 

ADDENDUM TO EMPLOYMENT AGREEMENT

 

THIS ADDENDUM TO EMPLOYMENT AGREEMENT (the “Addendum”) is made this 29th day of June, 2021 by and between American Well Corporation (Israeli Branch), company No. 560034696, located at Menachem Begin 11, Ramat Gan Israel, (the “Company”) on the one hand, and Ido Schoenberg, Passport No. 23851865, resident in 17 Nof Tavor, Kfar  Kisch  19330, Israel, (the “Executive”) on the other hand. 

	
WHEREAS 
	
the Executive has been employed by the Company in the US from June 18, 2020, pursuant to an employment agreement dated June 18, 2020 (the “Employment Agreement”); 

	
WHEREAS 
	
the Executive wishes to be employed in Israel in the position of Chairman and Co-Chief Executive Officer, as set forth hereunder and the Company wishes to employ the Executive, in Israel as of the Commencement Date; 

	
WHEREAS
	
due to the Executive’s relocation to Israel, certain amendments the Employment Agreement are required in order to comply with the Israeli law; 

WHEREAS the parties at this time desire to make certain other modifications to the Employment Agreement; and

	
WHEREAS 
	
the parties desire to state the entire terms and conditions of the Executive's employment by the Company in Israel (and otherwise going forward), as set forth below.

NOW, THEREFORE, in consideration of the mutual premises, covenants and other agreements contained herein, the parties hereby agree as follows:

	
 
	
1.
	
This Addendum shall be effective as of January 1, 2021 (the “Effective Date”).

	
 
	
2.
	
Except as specifically modified in this Addendum, the provisions, terms, conditions, and definitions in the Agreement shall remain in full force and effect.

	
 
	
3.
	
Notwithstanding anything to the contrary in the Agreement the parties hereby agree that as of the Effective Date the following shall apply:

	
 
	
3.1.
	
Commencement. The Executive's employment with the Company in Israel shall commence on the Effective Date. 

	
 
	
3.2.
	
Recording of Hours: Per the requirements under applicable law, the Executive shall cooperate with the Company in maintaining a record of the number of hours of work performed, in accordance with the Company's policy and instructions.

	
 
	
3.3.
	
Pension Insurance. 

	
 
	
3.3.1.
	
The Company and the Executive will obtain and maintain pension insurance according to the Executive’s choice (“Pension Insurance”) and according to the mandatory requirements in Israel. Notwithstanding the aforementioned, the Company’s contributions towards severance shall be 8.33% of the Average Salary (as defined below).

	
 
	
3.3.2.
	
For the removal of doubt, the Company's allocations towards Pension Insurance shall be set from the average salary in Israel, as provided by the Extension Order for Mandatory Pension (the “Average Salary”).

	
 
	
3.3.3.
	
The Company’s contributions towards the severance pay component of the Pension Insurance shall be instead of severance pay, pursuant to Section 14 of the Severance Payments Law, 5723-1963. The parties hereby agree to comply with the conditions of the “General Approval Regarding the Payment by Employers to Pension Funds and 

 

 

	
 
		
Insurance Funds, in Lieu of Severance Payments pursuant to the Severance Pay Law, 5723 – 1963”, the provisions of which are attached hereto, in the original Hebrew version, as Exhibit A (the “General Approval”), and the parties hereby adopt the provisions thereof. The Company waives any right that it may have for the repayment of any monies paid by it to the Pension Plan, unless the right of Executive to severance has been revoked by a judicial decision, under Section 16 or 17 of the Severance Pay Law, 1963 (to the extent of such revocation) or pursuant to an “Entitling Event”, as defined under the General Approval.

	
 
	
3.4.
	
Severance Pay – For the removal of any doubt and unless amended specifically by the parties, any amounts paid to the Executive, pursuant to the provisions of Section 9 of the Employment Agreement, shall be on account of the Executive’s statutory severance and shall be deducted from such statutory severance. Executive’s severance under Section 9 of the Employment Agreement shall continue to be based upon Executive’s Base Salary amount under Section 3 of the Employment Agreement and shall not be reduced by any deductions or payments under Section 3.3 above. In any case that the Employee will not be entitled to severance pursuant to Section 9 of the Employment Agreement, any statutory severance entitlement shall be off set with any bonus, grant or payment the employee will be entitled to under the Employment Agreement.

	
 
	
3.5.
	
Travel Expenses - Executive shall be entitled to reimbursement of travel expenses, which shall be included in the Executive’s Salary, in accordance with applicable law.

	
 
	
3.6.
	
Dmey Havra’ah (Convalescence Pay) - The Executive shall be entitled to “Dmey Havra’ah”, which shall be included in the Executive’s Salary, in accordance with any applicable law.

	
 
	
3.7.
	
Annual Vacation - Executive shall be entitled to paid vacation days during each year of Executive’s employment in the amount per applicable law (the “Annual Vacation Allowance”). Notwithstanding the above, the Company will allow the Executive to take vacation days exceeding the Annual Vacation Allowance (the “Additional Vacation Days”) and will allow Executive to enter into a negative accrual of vacation days which will be deleted at the end of each calendar year. The Employee shall not be allowed to carry over vacation days from one year to another, and, unless otherwise prescribed by law, any unused vacation days, including, without limitation, the Annual Vacation Allowance and the Additional Vacation Days, shall be forfeited and shall not be redeemed upon termination of employment.

	
 
	
3.8.
	
Sick Leave - The Executive shall be entitled to pay Sick Leave during each year of employment in accordance with any applicable law.

	
 
	
3.9.
	
Good Reason. The definition of “Good Reason” set forth in Exhibit B to the Employment Agreement shall be modified to delete clause (1) and replace it with “relocation of Executive’s employment location more than twenty-five (25) miles from the Company’s current offices in Ramat Gan, Israel”

	
 
	
4.
	
All amounts paid to the Executive under this Addendum are in addition to any payment under the Employment Agreement. Notwithstanding, the Company will be entitled to set off any amounts paid under this Addendum from any Bonus entitlement the Executive may have, under the Employment Agreement. 

	
 
	
5.
	
If the Company adopts a concierge medical program, Executive shall be covered under such  program notwithstanding Executive’s employment location.

	
 
	
6.
	
During the Executive’s employment in Israel: 

(x) the Employment Agreement, this Addendum and the Executive’s employment under this Addendum shall be governed by the laws of the State of Israel (and Section 16(j) (Governing Law) of the Employment Agreement  shall not apply) and 

(y) Section 16(h) of the Employment Agreement is amended in its entirety as follows:  

2

 

 

if any dispute arises under this Agreement or otherwise which cannot be resolved by mutual discussion between the parties, then the Company and Executive each agree to resolve that dispute by binding arbitration before an arbitrator experienced in employment law and subject to the provisions of the Arbitration Law, 5738-1968.  The parties agree that the arbitration shall be conducted in the "Center of Arbitration and Dispute Resolutions" located in Tel Aviv, Israel. The parties agree that this agreement to arbitrate includes any such disputes that the Company may have against Executive, or Executive may have against the Company and/or its related entities and/or employees, arising out of or relating to this Agreement, or Executive’s employment or Executive’s termination, including any claims of discrimination or harassment in violation of applicable law and any other aspect of Executive’s compensation, employment, or Executive’s termination.  The parties further agree that arbitration as provided for herein is the exclusive and binding remedy for any such dispute and will be used instead of any court action, which is hereby expressly waived, except for any request by any party for temporary, preliminary or permanent injunctive relief pending arbitration in accordance with applicable law or for breaches by Executive of Executive’s obligations under Sections ‎12, ‎13, ‎15 or ‎16 hereof. The Company shall pay the cost of any arbitration brought pursuant to this paragraph, excluding, however, the cost of representation of Executive, unless such cost is awarded in accordance with law or otherwise awarded by the arbitrators. Neither party nor an arbitrator may disclose the existence, content or results of any arbitration hereunder without the prior written consent of both parties, except (1) as provided by Section ‎11 and (2) as may be required by law.  The Company shall reimburse Executive for reasonable legal fees incurred in connection with any dispute under this Agreement if Executive prevails on at least one material issue in such dispute.

	
 
	
7.
	
Except as specifically modified in the above mentioned, all other terms and conditions of the Employment Agreement shall remain unchanged.

	
 
	
8.
	
This Addendum shall constitute an unseparated part of the Employment Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first appearing above.

				
	
 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

	
_________________________
	
 
	
 
	
 

	
American Well Corporation.
	
 
	
 
	
Ido Schoenberg

By: Brad Gay

Title: General Counsel

 

 

 

The Executive hereby declares that he read this Agreement, understood the content of this Agreement and he agrees to this Agreement.

 

Ido Schoenberg: ________

Date: ________

Signature: ________________ 

 

3amwl-ex1040_140.htm

 

Exhibit 10.40

AMENDMENT TO
Amended & RESTATED EMPLOYMENT AGREEMENT

This Amendment to Amended and Restated Employment Agreement (the “Amendment”), amends the Amended & Restated Employment Agreement (the “Agreement”), entered into as of March 24, 2021 by and between American Well Corporation, a Delaware corporation (the “Company”), and Keith Anderson, an individual (the “Executive”), (hereinafter collectively referred to as “the parties”).

RECITALS

WHEREAS, the Company desires to continue to employ Executive through December 31, 2021, and Executive desires to accept such continued employment with the Company subject to the terms and conditions set forth herein;

Now, Therefore, in consideration of the respective agreements of the parties and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive agree to the following, all effective as of September 21, 2021 (the “Effective Date”):

	
 
	
1.
	
Except as set forth herein, the terms of the Agreement are unchanged and remain in full force and effect.  

	
 
	
2.
	
Section 1 of the Agreement is amended such that the Employment Term continues through December 31, 2021, and does not renew.  Notice of non-renewal need not be given.  

	
 
	
3.
	
Section 2 (a) of the Agreement is amended such that Executive will step down as Chief Financial Officer (“CFO”) on October 16, 2021, and after which will be employed for the remainder of the Employment Term as CFO in Transition with only the duties set forth in Appendix A hereto.  

	
 
	
4.
	
Through December 31, 2021, Executive’s compensation and benefits will not be reduced in any manner, and he will continue to vest in all equity grants and incentive awards.  In addition, in consideration for Executive remaining employed through the full calendar year 2021 (ending December 31, 2021), Executive’s compensation will include the following:

	
 
	
a.
	
Regarding the annual cash bonus for fiscal year 2021, Executive will receive no less than the full Target Bonus ($485,000), which will be paid on December 31, 2021. 

	
 
	
b.
	
After Executive’s employment ends, should Executive elect continued health coverage for himself and his dependents pursuant to COBRA, the Company will continue to pay 100% of the health coverage premiums for so long as Executive and/or Executive’s dependents are eligible for continued health coverage under COBRA.  

	
 
	
c.
	
Regarding the Company’s April 15, 2021 grant to Executive of 189,572 restricted share units (“RSUs”), known by the parties as the “2021 LTIP”, the portion of the 2021 LTIP that would otherwise vest on April 15, 2022 had Executive remained employed through that date (25% would vest on April 15, 2022) will instead vest on December 31, 2021 (unless Executive is terminated for Cause prior to such date).  This Amendment constitutes the written agreement between Participant (Executive) and the Company authorizing such vesting pursuant to Section B of the Restricted Stock Unit Agreement incorporated by reference into the Notice of RSU Grant. For purposes of clarity, 47,393 2021 LTIP RSUs 

 

 

	
 
		
will vest on December 31, 2021 and the unvested remainder of the 2021 LTIP RSUs will be immediately forfeited, except as set forth below.  

	
 
	
d.
	
If on or before March 31, 2022, one or more offers is made to enter into a transaction that would constitute a Change in Control, as defined in the Company’s 2020 Equity Incentive Plan (the “Equity Plan”), and such Change in Control ultimately takes place with any such party (or an affiliate of such party) on or before March 31, 2023, then all of Executive’s RSUs that were unvested as of the expiration of the Employment Term will vest in full and be immediately settled in the Company’s common shares upon closing   For the avoidance of doubt, Executive will receive this benefit even if his employment is terminated by the Company prior to the expiration of the Employment Term, provided such termination was not by the Company for Cause.

	
 
	
5.
	
Regarding Exhibit A to the Agreement (Definitions), the definition of Cause is limited to item (1):  “Executive’s indictment or conviction for either a felony offense or any other crime involving, or participation in, any fraud, theft or embezzlement.”

	
 
	
6.
	
Executive will have the right to review in advance any press release related to the matters set forth herein and will have the right to approve any quotation by Executive utilized in such release. 

 

In Witness Whereof, the parties hereby execute this Amendment as of September 21, 2021.

AMERICAN WELL CORPORATION

		
	
By:    
	
 

	
Name:
	
 

	
Title:
	
 

  

EXECUTIVE

		
	
By:    
	
 

	
Name:
	
Keith Anderson

 

 

 

 

 

APPENDIX A

Duties of the CFO in Transition

 

	
 
	
•
	
Duties and Responsibilities of Executive under the aforementioned new role:

	
 
	
o
	
Lead efforts related to filing the AMWL 3RD QUARTER 10Q including 302 certifications

	
 
	
o
	
Participate with the CEO in the AMWL 3RD Quarter earnings calls

	
 
	
o
	
Lead the efforts to prepare Q3 AMWL Audit Committee materials 

	
 
	
o
	
Participate with the CEO in any Q3 AMWL earnings investor calls

	
 
	
▪
	
Lead the efforts to compile data historically required for CFO to conduct the earnings, research analyst and investor calls 

	
 
	
o
	
2021 Audit:

	
 
	
▪
	
Monitor 10K/2021 audit process

	
 
	
•
	
Note Executive will not be signing the 2021 10K in any capacity, including as the CFO

	
 
	
▪
	
Monitor the SOX compliance process

	
 
	
▪
	
Monitor the NYSE internal audit function

	
 
	
▪
	
Monitor the progress of remediating the remaining AMWL material weaknesses

	
 
	
o
	
2022 Financial Guidance to Investors:

	
 
	
▪
	
The Executive’s role in connection with the preparing of 2022 guidance to investors will be limited solely to providing assistance related to the assembly of a guidance update report to CEO and Audit Committee on a periodic basis.   For the avoidance of doubt, the 2022 guidance process will be the responsibility of the CEO or COO, and not the reasonability of the Executive. 

	
 
	
o
	
Sale of AMWL (M&A Sell-side): Executive will perform the role typical of CFO if AMWL is approached as an M&A target i.e. respond to diligence requests and cooperate with bankers/lawyers

	
 
	
•
	
Reassign the AMWL Legal function to report to CEO from currently reporting to the CFO 

	
 
	
•
	
Other items:

	
 
	
o
	
M&A buy-side: Executive will not lead any AMWL buy-side projects but will continue to provide guidance to the CEO and Corporate Development Team

	
 
	
o
	
Executive will not be responsible for the hiring process for a Head of Investor Relations 

	
 
	
o
	
Executive will not participate in the formation of any joint-ventures or other strategic or commercial contracts

	
 
	
o
	
Executive will not participate in any fund raising including issuance of any convertible bonds

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