Document:

Exhibit 10.1

 

480 Pleasant Street Lee,

Massachusetts 01238 (413)

243-1600

 

December 19, 2013

 

Mr. William M. Solms

6483 Cheshire Lane

Marshall, VA 20115

 

Dear Bill,

 

On behalf Wave Systems Corp, I am pleased to offer you a position as Chief Executive Officer which is an Exempt position and reports to Wave’s Board of Directors.  Additionally, you have also been named as a Director on Wave’s Board of Directors.  This letter, while not a contract of employment, is our attempt to summarize our understanding regarding the terms of your employment with Wave Systems Corp. (“Wave Systems Corp” or the “Company”).

 

Your position as CEO will be retroactive to October 6, 2013 which was the date upon which you were named Interim CEO.  All employment with Wave Systems Corp is on an “at will” status.  All employment with Wave Systems Corp is a voluntary one and is subject to termination by you, or the Company at will, with or without cause, and with or without notice, at any time. Nothing in this offer letter shall be interpreted to be in conflict with or to eliminate or modify in any way the employment-at-will status of Wave Systems Corp employees.

 

Your compensation will be at a rate of $8,333.33 semi-monthly.  This equates to an annual salary of $200,000; this figure is not a guarantee of earnings and is provided for informational purposes only.  For Fair Labor Standards Act (FLSA) wage and hour purposes, this position is classified as exempt, which means that you will not be eligible for overtime time pay for hours actually worked in excess of 40 in a given workweek.

 

·                 Stock options- The Compensation Committee of the Board of Directors bas granted 275,000 incentive stock options under the terms of our 1994 Employee Stock Option Plan. According to the plan these options would vest over three years on the 1st, 2nd, & 3rd anniversaries of the date of this letter, and expire ten years after the grant date.

 

·                 Benefits - You will continue to be eligible for benefits offered by the Company on your first day of hire. Your eligibility for participation in the 40 l(k) plan is on your first day of hire, or your 21st Birthday, whichever comes first. You will be eligible for 15 days of vacation, nine paid holidays, and other personal days as offered by our Personnel Policies.

 

·                 Remote Position –It is expected that you have a primary home office in Virginia that can be used for managing and communication in a professional manner within the scope of your duties as CEO.  Wave will reimburse reasonable office monthly telephone and internet expenses through Wave’s process of employee expense reimbursements.

 

·                 Bonus-Participation in a Bonus Program will entitle you to earn up to an additional $200,000 for the first 12 months in your position as CEO (starting on October 6, 2013), targeted at 100% performance results.  This compensation is not guaranteed compensation but rather will be based upon the 2013 & 2014 variable compensation plan as determined between you and Wave’s Board of Directors.  Your share of this Bonus Program will be calculated and determined when specified performance objectives are met

 

 

We greatly look forward to having you in your new position as CEO of Wave Systems Corp.  We believe that your unique talents will allow Wave Systems Corp to continue to grow and believe that your future here will be rewarding both professionally and financially.

 

 

Yours truly,

 

 

Robert Frankenberg

Director and Chairman of the Compensation Committee

 

CC: Human Resources

 

 

The provisions of this offer of employment have been read, are understood, and the offer is herewith accepted.

 

 

	
Date:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted &   Signed:Exhibit 10.2

 

 

March 31, 2014

 

Mr. Walter Shephard

26 Harbor View Drive

Essex, CT 06426

 

Dear Walter,

 

On behalf Wave Systems Corp, I am pleased to offer you a position as Chief Financial Officer, which is an Exempt position and reports to William Solms, CEO.  This letter, while not a contract of employment, is our attempt to summarize our understanding regarding the terms of your employment with Wave Systems Corp. (“Wave Systems Corp” or the “Company”) and is subject to the successful completion of a background check as well as verification of the information you have presented with your application.

 

Your employment will commence on April 1, 2014, or upon another date which is mutually agreeable.  All employment with Wave Systems Corp is on an “at will” status.  All employment with Wave Systems Corp is a voluntary one and is subject to termination by you, or the Company at will, with or without cause, and with or without notice, at any time. Nothing in this offer letter shall be interpreted to be in conflict with or to eliminate or modify in any way the employment-at-will status of Wave Systems Corp employees.

 

Please send appropriate documentation with the completion of your new hire forms, including proof that you are eligible for employment in the United States.  You will be required to complete an I-9 form as a condition of employment. You will also be required to execute a Non-Disclosure Agreement, an Employment Agreement, and a Securities Trades by Company Personnel Statement.

 

Your compensation will be at a rate of $7,916.67 semi-monthly.  This equates to an annual salary of $190,000; this figure is not a guarantee of earnings and is provided for informational purposes only.  For Fair Labor Standards Act (FLSA) wage and hour purposes, this position is classified as exempt, which means that you will not be eligible for overtime time pay for hours actually worked in excess of 40 in a given workweek.

 

·                  Stock options - We will recommend to the Compensation Committee of the Board of Directors that you be granted 250,000 incentive stock options under the terms of our 1994 Employee Stock Option Plan.  According to the plan these options would vest over three years on the 1st, 2nd, & 3rd anniversaries of your employment date, and expire ten years after the grant date.

 

·                  Benefits - You will be eligible for benefits offered by the Company on your first day of hire. Your eligibility for participation in the 401(k) plan is on your first day of hire, or your 21st Birthday, whichever comes first. You will be eligible for 20 days of vacation, ten paid holidays, and other personal days as offered by our Personnel Policies.  You shall be entitled to reimbursement by the Company for such customary, ordinary and necessary business expenses as incurred by you in the performance of your duties and activities associated with promoting and maintaining the business of the Company, including travel, lodging, communications, and necessary office equipment.

 

·                  Bonus — You will be eligible for an annual executive bonus pending business performance of $135,000to be evaluated and paid quarterly.

 

This offer of employment will expire five days from the date of this letter.  If you wish to accept the offer, please sign a copy in the place provided below and return it to me within the prescribed time period.

 

 

We greatly look forward to having you join Wave Systems Corp and becoming a member of our team.  We believe that your unique talents will allow Wave Systems Corp to continue to grow and believe that your future here will be rewarding both professionally and financially.

 

Yours truly,

 

 

William Solms

CEO

 

CC: Human Resources

 

 

The provisions of this offer of employment have been read, are understood, and the offer is herewith accepted. I understand that my employment is contingent upon completion of background check.

 

This offer shall remain open until April 4, 2014. Any acceptance postmarked after this date will be considered invalid.

 

 

	
Date:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted &   Signed:Exhibit 10.1

 

RESTRICTED STOCK AGREEMENT

NABORS INDUSTRIES, INC.

 

This Restricted Stock Grant (“Restricted Stock Grant”) between Nabors Industries, Inc. (“NII”), acting on behalf of Nabors Industries Ltd. (“NIL” or the “Company”), and William Restrepo (“Grantee”), an Eligible Recipient, contains the terms and conditions under which the Compensation Committee of the Board of Directors (the “Committee”) of NIL, has awarded to Grantee, as of March 3, 2014 (the “Date of Grant”) and pursuant to the Nabors Industries Ltd. 2013 Stock Plan (“2013 Plan”), certain restricted common shares of the Company to incentivize Grantee to contribute to the success of the Company.  The applicable terms of the 2013 Plan are incorporated in this Restricted Stock Grant by reference, including the definitions of terms contained in the 2013 Plan.

 

RESTRICTED STOCK GRANT

 

In accordance with the terms of the 2013 Plan, the Committee has made this award (the “Award”) of restricted stock (“Restricted Shares”) and concurrently has issued or transferred to the Grantee shares of Common Stock upon the following terms and conditions:

 

SECTION 1.  Number of Shares.  The Award consists of 80,346 Restricted Shares.

 

SECTION 2.  Rights of the Grantee as Shareholder.  The Grantee, as the owner of the shares of Common Stock issued or transferred pursuant to this Restricted Stock Grant, is entitled to all the rights of a shareholder of NIL, including the right to vote, the right to receive dividends payable either in stock or in cash, and the right to receive shares in any recapitalization of the Company, subject, however, to the restrictions stated in this Restricted Stock Grant.  If the Grantee receives any additional shares by reason of being the holder of the shares of Common Stock issued or transferred under this Restricted Stock Grant or of the additional shares previously distributed to the Grantee, all of the additional shares shall be subject to the provisions of this Restricted Stock Grant.  Initially, the shares of Common Stock will be held in an account maintained with the processor under the 2013 Plan (the “Account”).  At the discretion of NIL, NIL may provide the Grantee with a certificate for the shares, which would bear a legend as described in Section 5.

 

SECTION 3.  Restriction Period.  The period of restriction (“Restriction Period”) for the shares of Common Stock issued under this Restricted Stock Grant shall commence on the Date of Grant and shall lapse, if at all, as follows:

 

(a) The Committee, in its sole discretion, has established target performance goals based on the Company’s Total Shareholder Return (“TSR Targets”), which will be measured over a three-fiscal-year performance cycle commencing on January 1, 2014 and ending on December 31, 2016 (such period, the “Performance Cycle”). Total Shareholder Return (“TSR”) is the percentage increase in the value of shares over the Performance Cycle, based on the average closing share price for the thirty (30) consecutive business days prior to the start of the Performance Cycle and the average closing share price for the last thirty (30) consecutive business days in the Performance Cycle.  The increase is calculated as the sum of (i) the change in share price and (ii) the value of dividends declared during the Performance Cycle, assuming such dividends are reinvested in additional shares as of the date they are declared. The Company’s TSR will be compared to the TSR of a peer group (the “Peer Group”) comprised of Halliburton Co.; Baker Hughes, Inc.; ENSCO International Inc.; Weatherford International Ltd.; Diamond Offshore Drilling Inc.; Noble Corp.; Helmerich & Payne Inc.; Rowan Companies Inc.; Superior Energy Services, Inc.; Patterson-UTI, Inc.; Key Energy Services, Inc.; RPC, Inc.; National-Oilwell Varco, Inc.; Transocean Ltd.; and Unit

 

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Corporation to determine Relative TSR (“RTSR”). The Peer Group may be adjusted by the Committee from time to time during or at the conclusion of the Performance Cycle, in its sole discretion after consultation with Grantee, in the event any of the companies in the Peer Group cease to be publicly traded or in response to a merger, consolidation or divestiture activity amongst companies, available public reporting or other events actually or potentially affecting the composition of the Peer Group.  Any such adjustments shall be prescribed in a manner that strives to meet the requirements of Section 162(m) of the Code.

 

(b) Restrictions will lapse based upon TSR relative to the Peer Group, pursuant to the schedule on Exhibit A.  The Committee shall have sole discretion to determine which RTSR Target has been achieved (if any) and whether the restrictions shall lapse on any or all of the Restricted Shares. The Committee’s determinations pursuant to the exercise of discretion with respect to all matters described in this paragraph shall be final and binding on the Grantee. The Committee shall make this determination within sixty (60) days following the end of the Performance Cycle or as soon as administratively practicable thereafter, with any lapses to occur as of the date of determination (the “TSR Vesting Date”).

 

(c)  If, as of the TSR Vesting Date, the Compensation Committee determines that restrictions shall lapse for less than 100% of the Restricted Shares, (x) neither the Grantee nor any of his heirs, beneficiaries, executors, administrators or other personal representatives shall have any further rights whatsoever in or with respect to any of the remaining Restricted Shares and all such shares shall be forfeited to NIL without consideration.

 

(d) In the event of termination of the Grantee’s employment by reason of Disability (as defined in his employment agreement effective March 3, 2014) or death, fifty percent (50%) of the unvested Restricted Shares held by Grantee or his designated beneficiary (as applicable) shall become vested on the TSR Vesting Date.

 

(e) In the event of termination of the Grantee’s employment either by the Grantee for Constructive Termination Without Cause, or by the Company Without Cause (each as defined in his employment agreement effective March 3, 2014), fifty percent (50%) of the unvested Restricted Shares held by Grantee shall become vested on the TSR Vesting Date.

 

(f) Anything herein notwithstanding, in the event of the termination of the Grantee’s employment by the Company for Cause or by the written voluntary resignation of the Grantee (each as contemplated in Grantee’s employment agreement effective March 3, 2014), the Grantee shall forfeit any Restricted Shares to the extent the restrictions on those shares have not lapsed as of the date the Executive’s employment is terminated.

 

(g) Upon the release of the Restricted Shares from the restrictions, the Restricted Shares held by Grantee or his designated beneficiary (as applicable) shall be distributed to Grantee or his designated beneficiary (as applicable). No fractional shares of Common Stock will be issued. If the calculation of the number of shares of Common Stock to be issued results in fractional shares, then the number of shares of Common Stock will be rounded up to the nearest whole share of Common Stock.

 

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SECTION 4.  Terms and Conditions.  The Award is subject to the following terms and conditions:

 

(a)         Any Award made to Grantee shall be for the benefit of the Grantee, his heirs, devisees, legatees or assigns at any time.

 

(b)         Except as otherwise provided herein, this Restricted Stock Grant is subject to, and NII and the Grantee agree to be bound by, all the terms and conditions of the 2013 Plan, as the same may have been amended from time to time in accordance with its terms.  Pursuant to said 2013 Plan, the Board of Directors of NIL or its Committee established for such purposes is vested with conclusive authority to interpret and construe the 2013 Plan and this Restricted Stock Grant, and is authorized to adopt rules and regulations for carrying out the 2013 Plan.  Further, the parties reserve the right to clarify or amend this Restricted Stock Grant on mutually acceptable terms in any manner which would have been permitted under the 2013 Plan as of the Date of Grant.

 

SECTION 5.  Legend on Certificates.  Any certificate evidencing ownership of shares of Common Stock issued or transferred pursuant to this Restricted Stock Grant that is delivered during the Restriction Period shall bear the following legend on the back side of the certificate:

 

These shares have been issued or transferred subject to a Restricted Stock Grant and are subject to certain restrictions as more particularly set forth in a Restricted Stock Grant Agreement, a copy of which is on file with Nabors Corporate Services, Inc.

 

At the discretion of NIL, NIL may hold the shares of Common Stock issued or transferred pursuant to this Restricted Stock Grant in an Account as described in Section 2, otherwise hold them in escrow during the Restriction Period, or issue a certificate to the Grantee bearing the legend set forth above.

 

SECTION 6.  Section 83(b) Election.  If the Grantee makes an election pursuant to Section 83(b) of the Internal Revenue Code, the Grantee shall promptly (but in no event after thirty (30) days from grant) file a copy of such election with NIL, and cash payment for taxes shall be made at the time of such election.

 

SECTION 7.  Withholding Tax.  Before NIL removes restrictions on transfer from the Account or delivers a certificate for shares of Common Stock issued or transferred pursuant to this Restricted Stock Grant that bears no legend or otherwise delivering shares free from restriction, the Grantee shall be required to pay to NIL or to NII the amount of federal, state or local taxes, if any, required by law to be withheld (“Withholding Obligation”).  Subject to any subsequent Committee determination, NIL will withhold the number of shares required to satisfy any Withholding Obligation, and provide to Grantee a net balance of shares (“Net Shares”) unless NIL receives notice not less than five (5) days before any Withholding Obligation arises that Grantee intends to deliver funds necessary to satisfy the Withholding Obligation in such manner as NIL may establish or permit.  Notwithstanding any such notice, if Grantee has not delivered funds within fifteen (15) days after the Withholding Obligation arises, NIL may elect to deliver Net Shares.

 

SECTION 8.  Notices and Payments.  Any notice to be given by the Grantee under this Restricted Stock Grant shall be in writing and shall be deemed to have been given only upon receipt by the Stock Plan Administrator of Nabors Corporate Services, Inc. at the offices of Nabors Corporate Services, Inc. in Houston, Texas, or at such address as may be communicated in writing

 

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to the Grantee from time to time.  Any notice or communication by NIL or NII to the Grantee under this Restricted Stock Grant shall be in writing and shall be deemed to have been given if sent to the Grantee at the address listed in the records of NIL or at such address as specified in writing to NIL by the Grantee.

 

SECTION 9.  Waiver.  The waiver by NIL of any provision of this Restricted Stock Grant shall not operate as, or be construed to be, a waiver of the same or any other provision of this Restricted Stock Grant at any subsequent time for any other purpose.

 

SECTION 10.  Governing Law & Severability.  The Plan and all rights and obligations thereunder shall be construed in accordance with and governed by the laws of the State of Delaware.  If any provision of this Restricted Stock Grant should be held invalid, the remainder of this Restricted Stock Grant shall be enforced to the greatest extent permitted by applicable law, it being the intent of the parties that invalid or unenforceable provisions are severable.

 

SECTION 11.  Entire Agreement.  This Restricted Stock Grant, together with the Plan, contains the entire agreement between the parties with respect to the subject matter and supersedes any and all prior understandings, agreements or correspondence between the parties.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Restricted Stock Grant as of the day and year first written above.

 

	
 
    	
NABORS   INDUSTRIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GRANTEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WILLIAM   RESTREPO
    

 

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Exhibit A

 

	
RTSR RANK
    	
 
    	
PERCENTAGE OF
    SHARES
    EARNED
    	
 
    
	
1,   2 or 3
    	
 
    	
100
    	
%
    
	
4   or 5
    	
 
    	
75
    	
%
    
	
6   or 7
    	
 
    	
60
    	
%
    
	
8   or 9
    	
 
    	
50
    	
%
    
	
10   or 11
    	
 
    	
40
    	
%
    
	
12   or 13
    	
 
    	
25
    	
%
    
	
14,   15 or 16
    	
 
    	
0
    	
%
    

 

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