Document:

Exhibit
10.1

 

DIRECTOR
SERVICES AGREEMENT

 

DIRECTOR
SERVICES AGREEMENT (this “Agreement”) is dated as of January 11, 2022, by and between ORBSAT CORP,
a Nevada corporation (the “Company”) and Rodney Barreto (referred to herein as “you” or
“your”).

 

WHEREAS,
the Company desires to attract and retain a director who will consent to serve as a member of the Board of Directors of the Company (the
“Board”); and

 

WHEREAS,
the Company believes that you possess valuable qualifications and abilities to serve on the Company’s Board and its committees
and desires to nominate you to serve as a director.

 

NOW,
THEREFORE, the parties agree as follows:

 

1.
Term. You consent to serve as a director of the Company beginning on January 20, 2022 (the “Effective Date”),
for an initial term of two years if elected or appointed and, upon re-appointment or election to the Board of the Company, to serve as
a member of the Board of the Company.

 

2.
Services. You shall render services as a member of the Board and such committees of the Board as the Board may designate, subject
to your agreement to serve on such committees (hereinafter, your “Duties”). You acknowledge that this is not
an employment agreement and shall not be construed or interpreted to create any right for you to be employed by the Company. During the
term of this Agreement, you shall attend and participate in such number of meetings of the Board and of the committees of which you may
become a member (if any) as regularly or specially called. You may attend and participate at each such meeting, via teleconference or
in person. You shall consult with the other members of the Board and committee (if any) regularly and as necessary via telephone, electronic
mail or other forms of correspondence. To the extent that you serve on the Audit Committee, you represent that you possess the necessary
skills and experience for purposes of such position, and agree to provide the Board with information necessary to determine if you qualify
as an Audit Committee financial expert.

 

3.
Services for Others. You shall be free to represent or perform services for other persons during the term of this Agreement. However,
you agree that you do not presently perform and do not intend to perform, during the term of this Agreement, similar duties, consulting
or other services for companies whose businesses are or would be, in any way, competitive with the Company (except for companies previously
disclosed by you to the Company in writing). Should you propose to perform similar duties, consulting or other services for any such
company, you agree to notify the Company in writing in advance (specifying the name of the organization for whom you propose to perform
such services) and to provide information to the Company sufficient to allow it to determine if the performance of such services would
conflict with areas of interest to the Company.

 

    	1

     

    

 

4.
Compensation.

 

	 	(a)	Commencing
    on the Effective Date, and upon each anniversary thereof that you remain a director, you shall receive cash compensation of $48,000,
    inclusive of stipends for committee leadership and/or assignments (the “Annual Director Fee”) for each
    calendar year of service under this Agreement on a pro-rated basis which shall be paid on a quarterly basis in arrears. Notwithstanding
    the foregoing to the contrary, all compensation is subject to approval and/or change as deemed appropriate by the Board.
	 	 	 
	 	(b)	In
    addition to the Annual Director Fee set forth in Section 4(a), you shall be entitled to receive bonus(es) as determined by the Board
    and its Compensation Committee and to participate in any other compensation plans adopted by the Board for which you are eligible.
	 	 	 
	 	(c)	Equity
    Awards. You shall be eligible for such grants of awards under stock option or other equity incentive programs of the Company’s
    including, but not limited to, plans adopted by the Board and approved by the Company’s stockholders (or any successor or replacement
    plan adopted by the Board and approved by the Company’s stockholders) (the “Plan”) as the Compensation
    Committee of the Company may from time to time determine (the “Share Awards”). Share Awards shall be subject
    to the applicable Plan terms and conditions, provided, however, that Share Awards shall be subject to any additional terms and conditions
    as are provided herein or in any award certificate(s), which shall supersede any conflicting provisions governing Share Awards provided
    under the Plan.
	 	 	 
	 	(d)	The
    Company shall pay or reimburse you for all reasonable, pre-approved out-of-pocket expenses actually incurred or paid by you in the
    course of your service, including travel expenses for in-person meetings) consistent with the Company’s policy for reimbursement
    of expenses which may be modified from time to time without notice.

 

5.
No Assignment. Because of the personal nature of the services to be rendered by you, this Agreement may not be assigned by you
without the prior written consent of the Company.

 

6.
Confidential Information; Non-Disclosure. In consideration of your access to certain Confidential Information (as defined below)
of the Company, in connection with your business relationship with the Company, you hereby represent and agree as follows:

 

	 	(a)	Definition.
    For purposes of this Agreement the term “Confidential Information” means: (i) any information which the
    Company possesses that has been created, discovered or developed by or for the Company, and which has or could have commercial value
    or utility in the business in which the Company is engaged; and (ii) any information which is related to the business of the Company
    and is generally not known by non-Company personnel. Confidential Information includes, without limitation, trade secrets and any
    information concerning products, processes, formulas, designs, inventions (whether or not patentable or registrable under copyright
    or similar laws, and whether or not reduced to practice), discoveries, concepts, ideas, improvements, techniques, methods, research,
    development and test results, specifications, data, know-how, software, formats, marketing plans, and analyses, business plans and
    analyses, strategies, forecasts, customer and supplier identities, characteristics and agreements.

 

    	2

     

    

 

	 	(b)	Exclusions.
    Notwithstanding the foregoing, the term Confidential Information shall not include: (i) any information which becomes generally available
    to the public other than as a result of a breach of the confidentiality portions of this Agreement, or any other agreement requiring
    confidentiality between the Company and you; (ii) information received from a third party in rightful possession of such information
    who is not restricted from disclosing such information; (iii) information known by you prior to receipt of such information from
    the Company, which prior knowledge can be documented; and (iv) information you are required to disclose pursuant to any applicable
    law, regulation, judicial or administrative order or decree, or request by other regulatory organization having authority pursuant
    to the law; provided, however, that you shall first have given prior written notice to the Company and made a reasonable effort to
    obtain a protective order requiring that the Confidential Information not be disclosed.
	 	 	 
	 	(c)	Documents.
    You agree that, without the express written consent of the Company, you will not remove from the Company’s premises or retain
    following the termination of this Agreement or your service to the Company any notes, formulas, programs, data, records, machines
    or any other documents or items which in any manner contain or constitute Confidential Information, nor will you make reproductions
    or copies of same. You shall promptly return any such documents or items, along with any reproductions or copies to the Company upon
    the Company’s demand, upon termination of this Agreement, or upon your termination or Resignation (as defined in Section 7
    herein).
	 	 	 
	 	(d)	Confidentiality.
    You agree that you will at all times hold in trust and confidence all Confidential Information and will not disclose to others, directly
    or indirectly, any Confidential Information or anything relating to such information without the prior written consent of the Company,
    except as may be necessary to perform your duties to the Company as a member of the Board. You further agree that you will not use
    any Confidential Information without the prior written consent of the Company, except as may be necessary to perform your duties
    to the Company as a member of the Board. Notwithstanding the foregoing, you may disclose Confidential Information to your legal counsel
    and accounting advisors who have a need to know such information for accounting or tax purposes and who agree to be bound by the
    provisions of this paragraph (d).

 

    	3

     

    

 

	 	(e)	Ownership.
    You agree that the Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask
    work rights, trademark rights, and all other intellectual and industrial property rights of any sort throughout the world) relating
    to any and all inventions (whether or not patentable), works of authorship, mask works, designations, designs, know-how, ideas and
    information made or conceived or reduced to practice, in whole or in part, by you during the term of this Agreement and that arise
    out of your Duties in your capacity as a director (collectively, “Inventions”) and you will promptly disclose
    and provide all Inventions to the Company. You agree to assist the Company, at its expense, to further evidence, record and perfect
    such assignments, and to perfect, obtain, maintain, enforce, and defend any rights assigned.
	 	 	 
	 	(f)	Survival.
    You agree that the provisions of this Section 6 shall survive and remain in full force and effect upon and following any termination
    or purported termination of this Agreement or from and after the time you cease performing services to the Company.

 

7.
Resignation. You may voluntarily terminate your membership on the Board for any or no reason by delivering your written notice
of resignation to the Company (“Resignation”), and such Resignation shall be effective upon the time specified
therein or, if no time is specified, upon receipt of the notice of resignation by the Company. Upon the effective date of the voluntary
Resignation, your right to compensation hereunder will terminate subject to the Company’s obligations to pay you any compensation
that you have already earned and to reimburse you for approved expenses already incurred in connection with your performance of your
Duties as of the effective date of such termination or Resignation.

 

8.
Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida
without reference to principles of conflicts of laws and each of the parties hereto irrevocably consents to the jurisdiction and venue
of the federal and state courts located in the State of Florida.

 

9.
Entire Agreement; Amendment; Waiver; Counterparts. This Agreement expresses the entire understanding with respect to the subject
matter hereof and supersedes and terminates any prior oral or written agreements with respect to the subject matter hereof. Any term
of this Agreement may be amended and observance of any term of this Agreement may be waived only with the written consent of the parties
hereto. Waiver of any term or condition of this Agreement by any party shall not be construed as a waiver of any subsequent breach or
failure of the same term or condition or waiver of any other term or condition of this Agreement. The failure of any party at any time
to require performance by any other party of any provision of this Agreement shall not affect the right of any such party to require
future performance of such provision or any other provision of this Agreement. This Agreement may be executed in separate counterparts
each of which will be an original and all of which taken together will constitute one and the same agreement, and may be executed using
facsimiles of signatures, and a facsimile of a signature shall be deemed to be the same, and equally enforceable, as an original of such
signature. Delivery of such counterparts by facsimile or email/.pdf transmission shall constitute validity delivery thereof.

 

    	4

     

    

 

10.
Indemnification. The Company shall, to the maximum extent provided under applicable law, indemnify and hold you harmless from
and against any expenses, including reasonable attorney’s fees, judgments, fines, settlements and other legally permissible amounts
(“Losses”), incurred in connection with any proceeding arising out of, or related to, your performance of your
Duties, other than any such Losses incurred as a result of your gross negligence, fraud or willful misconduct. The Company shall advance
to you any expenses, including reasonable attorneys’ fees and costs of settlement, incurred in defending any such proceeding to
the maximum extent permitted by applicable law. Such costs and expenses incurred by you in defense of any such proceeding shall be paid
by the Company in advance of the final disposition of such proceeding promptly upon receipt by the Company of (a) written request for
payment; (b) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being
sought; and (c) an undertaking adequate under applicable law made by or on your behalf to repay the amounts so advanced if it shall ultimately
be determined pursuant to any non-appealable judgement or settlement that you are not entitled to be indemnified by the Company.

 

11.
Insurance. The Company maintains a policy of directors’ and officers’ insurance coverage with a liability limit of
at least $2,000,000 (“D&O Insurance”). In the event any notice of termination or significant change in
coverage or terms of D&O Insurance are received by the Company, prompt written notice shall be provided to you for so long as you
serve as a director of the Company and during any subsequent period during which you may be entitled to the benefit of such D&O insurance.

 

[Signature
Page Follows]

 

    	5

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and signed as of the day and year first above written.

 

	 	ORBSAT
    CORP:
	 	 
	 	By:	/s/
    Charles M. Fernandez
	 	Name:	Charles
    M. Fernandez
	 	Title:	Executive
    Chairman and Chief Executive Officer
	 	 	 
	 	Nominee
	 	 
	 	 	/s/
    Rodney Barreto
	 	Name:	Rodney
    Barreto

 

    	6ex_322520.htm

Exhibit 10.1

 

 

Yunhong CTI Ltd.

 

December 29, 2021

 

Mr. Frank Cesario

 

Re: Offer Letter

 

Dear Frank:

 

Yunhong CTI Ltd. (the “Company”) is pleased to offer you the position of Chief Executive Officer on the following terms and conditions. Certain capitalized terms below that are not otherwise defined when first used are defined on Exhibit B:

 

	
			1.

				
			Title: Chief Executive Officer, reporting to the Board of Directors (the “Board”). While serving as CEO, you will continue to serve in your position on the Board. Your initial date of employment will be mutually determined by you and the Company (the “Commencement Date”).

			

 

	
			2.

				
			Base Salary: $250,000 per year. Your base salary will be pro-rated for any partial years of employment.

			

 

	
			3.

				
			Sign-On Equity Grant: Pursuant to the terms of the Company’s 2018 Stock Incentive Plan (the “Plan”) and conditioned on your employment with the Company, your execution of the Restrictive Covenant Agreement (as defined below), and the satisfaction of any applicable legal requirements, the Company will grant you 25,000 shares of Unrestricted Stock (as defined in the Plan) within thirty (30) days of your Commencement Date. The equity grants described in Sections 3 and 4 are provided to you as an additional inducement for you to accept employment with the Company.

			

 

	
			4.

				
			Long-Term Incentive Equity Grant: Within thirty (30) days of your Commencement Date and provided any applicable legal requirements have been satisfied, the Company will grant you an additional 225,000 share of Restricted Stock (as defined in the Plan) (the “LTI Restricted Stock”). The restrictions on the LTI Restricted Stock will lapse upon your continued employment and your satisfaction of the performance goals and objectives set forth on Exhibit A (the “Performance Vesting Requirements”). Your LTI Restricted Stock will be subject to the terms and conditions of the applicable award agreement and of the Plan. In the event of a Change in Control (as defined on Exhibit B) during the period of your employment, the restrictions on the LTI Restricted Stock will lapse regardless of your satisfaction of the Performance Vesting Requirements.

			

 

	
			5.

				
			Cash Performance Bonus: As an additional incentive for you to increase value for the shareholders, the Company will pay you a cash bonus of $300,000 in the event that, during your employment, the Company’s common shares trade at or above $10/share for ten or more consecutive trading days (the “Cash Performance Bonus”). The Cash Performance Bonus will be paid to you on a regular payroll date of the Company within thirty (30) days of the date the trading condition described above has been satisfied.

			

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 2

 

	
			6.

				
			Benefits: You will be eligible to participate in the Company’s group employee benefit plans, as in effect from time to time, subject to any applicable waiting period, pre-existing condition or eligibility limitations and to the other terms and conditions of such plans.

			

 

	
			7.

				
			Vacation: You will be entitled to four weeks of vacation per year, to be scheduled at the mutual convenience of the Company and you, and subject to the terms of the Company’s vacation policy, as in effect from time to time.

			

 

	
			8.

				
			Severance Benefits: If the Company terminates your employment for a reason other than Cause (as defined on Exhibit B) or your death or Disability (as defined on Exhibit B), then you will be eligible to receive the following severance benefits (the “Severance Benefits”):

			

 

	 	
			a.

				
			Salary continuation equal to fifty-two (52) weeks of your then current base salary. The salary continuation, less applicable withholdings, will be paid in substantially equivalent installments on the Company’s regular payroll dates, provided that you comply with the conditions set forth in subsection (d) below.

			

 

	 	
			b.

				
			If you elect to receive continued health care coverage under COBRA, the Company will pay the premiums necessary to continue such coverage during the period of salary continuation set forth above or, if earlier, the date you become eligible for health care coverage from another employer, again subject to your compliance with the conditions set forth in subsection (d).

			

 

	 	
			c.

				
			Except as otherwise set forth above, the Company will not be obligated to provide you with any compensation or benefits beyond the date your employment terminates, other than as required by applicable law. You will not be eligible for severance under any other Company or affiliate plan, policy or practice.

			

 

	 	
			d.

				
			To receive the Severance Benefits, within seventy (70) days following your termination of employment, you must execute a separation agreement (the “Separation Agreement”) containing a general release and waiver of claims with respect to your employment and other customary terms, in form and substance reasonably acceptable to the Company, and such Separation Agreement must become effective and enforceable (the date the Separation Agreement becomes effective and enforceable, the “Separation Agreement Effective Date”). Any obligation of the Company to make the Severance Benefits available will cease upon (A) any reasonable determination by the Company that you have breached any of your obligations pursuant to the Restrictive Covenant Agreements (as defined in Section 10 below); or (B) any reasonable determination by the Company in good faith that you committed acts constituting Cause during your employment. Notwithstanding anything to the contrary, any payments that would otherwise be payable to you prior to the Separation Agreement Effective Date shall not be paid until after such date. Upon the Separation Agreement Effective Date, any payments to you that were delayed pursuant to the preceding sentence shall be promptly paid in a lump sum and any subsequent payments shall be paid to you pursuant to the schedule otherwise required by subsection (a) above. Further, to the extent that the period for your review and non-revocation of such Separation Agreement could include two calendar years, then any Separation Benefits payable to you shall in any event be withheld and paid no earlier than the second calendar year.

			

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 3

 

	
			9.

				
			At-Will Employment: Your employment will be “at-will”, will not have a fixed term and may be terminated by the Company or you at any time, for any reason, with or without notice.

			

 

	
			10.

				
			Restrictive Covenants: Your employment and equity grant are subject to your execution of a form of employee confidentiality and restrictive covenant agreement in a form provided to you by the Company (“Restrictive Covenant Agreement”). Your Restrictive Covenant Agreement will include covenants restricting your competition against the Company, solicitation of clients, and solicitation of employees during your employment and for twenty-four (24) months after termination of your employment for any reason as well as covenants protecting trade secrets and other confidential information. Your Restrictive Covenant Agreement will be finalized on or before your start date.

			

 

	
			11.

				
			Employee Handbook; Policies and Procedures: During your employment with the Company, you agree to observe and comply with the terms and conditions of the Company’s employee handbook and all other policies, procedures and rules of the Company, as in effect from time to time

			

 

	
			12.

				
			Other Conditions: Once this offer has been accepted, your start date will be determined by the Company after discussion with you. This offer of employment also is subject to normal course background checks and your providing documentation of your eligibility to work in the United States.

			

 

	
			13.

				
			Withholding; Tax Provisions: All payments described in this letter will be subject to applicable payroll and income tax withholding and other applicable deductions. You and the Company also agree to the additional tax provisions set forth in Exhibit C.

			

 

	
			14.

				
			Ability to Accept Offer: By accepting this offer, you confirm that you are able to accept this position and perform the duties it would involve without breaching any legal restrictions on your activities, such as restrictions imposed by a current or former employer. To the extent any such restrictions exist, you will provide the Company with as much information about them as possible, including copies of any agreements between you and your current or former employer describing such restrictions. You further confirm that you will not remove or take any documents or proprietary information of any kind with you from your current or former employer to the Company without written authorization from your current or former employer.

			

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 4

 

Frank, we are very pleased to present you with this offer (which supersedes any other discussions about your employment with the Company) and are excited about our joint opportunities. If you are in agreement with the terms of this letter, please sign where indicated below, acknowledging your acceptance, and return signed copies of this letter via e-mail to Jeff Leader by the close of business on December 31, 2021.

 

Very truly yours,

Yunhong CTI Ltd.

 

 

	
			By:

				
			/s/ Yubao Li                                    

			

 

	
			Its:

				
			Chairman

			

 

 

 

AGREED TO AND ACCEPTED THIS

 

31st day of December, 2021

 

  /s/ Frank Cesario                  

Frank Cesario

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 5

 

Exhibit A

 

The restrictions on the LTI Restricted Stock will lapse based on your continued employment and your satisfaction of the following performance goals and objectives:

 

	 	
			●

				
			The restrictions on 56,250 shares of the LTI Award will lapse when the Company’s trailing-twelve-month Adjusted EBITDA equals or exceeds $1 million at any time on or after January 1, 2022.

			

 

	 	
			●

				
			The restrictions on 56,250 shares of the LTI Award will lapse in the event the Company’s common shares trade at or above $5/share for ten or more consecutive trading days.

			

 

	 	
			●

				
			The restrictions on 56,250 shares of the LTI Award will lapse when the Company’s operating cash flow, calculated cumulatively from the date of your initial employment, equals or exceeds $1.5 million.

			

 

	 	
			●

				
			The restrictions on 56,250 shares of the LTI Award will lapse in the event the Company is able to refinance its current lender with a traditional lender on terms and conditions customary for such financing.

			

 

The Committee (as defined in the Plan) shall be responsible for determining when the conditions above have been satisfied.

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 6

 

Exhibit B

 

Capitalized terms used in the Company’s offer letter shall have the meanings ascribed to them when first introduced or as set forth below:

 

“Cause” shall mean any of the following as determined in the sole discretion of the Board in good faith: (a) your indictment for, or conviction or entry of a plea of guilty or nolo contendere to, or your engaging in conduct which would constitute (i) any felony or (ii) any crime (whether or not a felony) involving moral turpitude, fraud, theft, breach of trust or other similar acts, (b) your being or having been engaged in conduct constituting breach of fiduciary duty, willful misconduct or gross negligence relating to the Company or any of its affiliates or the performance of your duties, (c) your willful failure to (i) follow a reasonable and lawful directive of the Company or (ii) comply with any written rules, regulations, policies or procedures of the Company, (d) your violation of any agreement between you and the Company, or (e) your deliberate and continued failure to perform your material duties to the Company.

 

“Change in Control” shall mean the occurrence of any of the following events after the Commencement Date as determined by the Board:

 

(a) Ownership. Any Third Party becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities (excluding for this purpose any such voting securities held by the Company, or any affiliate, parent or subsidiary of the Company, or by any employee benefit plan of the Company) pursuant to a transaction or a series of related transactions;

 

(b) Merger/Sale of Assets. (i) A merger or consolidation of the Company other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation, as the case may be, outstanding immediately after such merger or consolidation (a “Post-Merger Controlling Interest”) or (B) a merger or consolidation where one or more Li Entities represent the Post-Merger Controlling Interest; or (ii) the sale or disposition by Company of all or substantially all of the Company’s assets to a Third Party; or

 

(c) Change in Board Composition. A change in the composition of the Board during any twelve (12) month period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date of this Agreement, or (B) are elected to the Board with the affirmative votes of the Li Entities holding voting securities of the Company at the time of such vote.

 

“Code Section 409A” shall mean Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Department guidance and regulations issued thereunder.

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 7

 

“Disability” shall mean your inability to perform the essential functions of your position as a result of a physical or mental impairment, with or without any accommodations required by law and after exhausting all leave permitted by the policies of the Company or required by law.

 

“Li Entity” shall mean Yubao Li and any Person (as defined below) that is controlled, directly or indirectly, by Mr. Li.

 

“Person” shall have the meaning set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended.

 

“Third Party” shall mean any Person other than a Li Entity.

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 8

 

Exhibit C

 

You and the Company agree to the following additional terms in connection with your offer of employment:

 

(a)    In the event that the payments or benefits set forth in your offer letter constitute “non-qualified deferred compensation” subject to Code Section 409A, then the following conditions apply to such payments or benefits.

 

(i)    Any termination of your employment triggering payment of benefits under your offer letter must constitute a “separation from service” under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) before distribution of such benefits can commence. To the extent that the termination of your employment does not constitute a separation of service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) (as the result of further services that are reasonably anticipated to be provided by you to the Company at the time your employment terminates), any such payments under your offer letter that constitute deferred compensation under Code Section 409A shall be delayed until after the date of a subsequent event constituting a separation from service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes of clarification, this provision shall not cause any forfeiture of benefits by you, but shall only act as a delay until such time as a “separation from service” occurs.

 

(ii)    Notwithstanding any other provision with respect to the timing of payments under this offer letter if, at the time of your termination, you are deemed to be a “specified employee” of the Company (within the meaning of Section 409A(a)(2)(B)(i) of the Code), then limited only to the extent necessary to comply with the requirements of Code Section 409A, any payments to which you may become entitled under this offer letter which are subject to Code Section 409A (and not otherwise exempt from its application) shall be withheld until (A) the first (1st) business day of the seventh (7th) month following the termination of your employment (B) the date of your death, or (C) such earlier date as is permitted under Code Section 409A, at which time you shall be paid an aggregate amount equal to the accumulated, but unpaid, payments otherwise due to you under the terms of this offer letter.

 

(iii)    It is intended that each installment of the payments and benefits provided under this offer letter shall be treated as a separate “payment” for purposes of Code Section 409A. Neither Company nor you shall have the right to accelerate or defer the delivery of any such payments or benefits except to the extent specifically permitted or required by Code Section 409A.

 

 

 

 

Mr. Frank Cesario

December 29, 2021

Page 9

 

(b)    In no event may you, directly or indirectly, designate the calendar year of any payment to be made pursuant to this offer letter or otherwise which constitutes a “deferral of compensation” within the meaning of Code Section 409A. All reimbursements and in-kind benefits provided pursuant to this offer letter will be made or provided in accordance with the requirements of Code Section 409A. To the extent that any reimbursements pursuant to this offer letter or otherwise are taxable to you, any reimbursement payment due to you will be paid to you on or before the last day of your taxable year following the taxable year in which the related expense was incurred; provided, that, you have provided the Company written documentation of such expenses in a timely fashion and such expenses otherwise satisfy the Company’s expense reimbursement policies. Reimbursements pursuant to this offer letter or otherwise are not subject to liquidation or exchange for another benefit and the amount of such reimbursements that you receive in any other taxable year.

 

(c)    Notwithstanding any other provision of this offer letter to the contrary, this offer letter shall be interpreted and at all times administered in a manner that avoids the inclusion of compensation in income under Code Section 409A, or the payment of increased taxes, excise taxes or other penalties under Code Section 409A. The parties intend this offer letter to be in compliance with Code Section 409A.

 

(d)    The Company and its affiliates and their respective officers, directors, partners, general partners, employees or agents make no guarantee that the terms of this offer letter comply with, or are exempt from, the provisions of Code Section 409A, and none of the foregoing will have any liability for the failure of the terms of this offer letter to comply with, or be exempt from, the provisions of Code Section 409A.

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