SEC Contract Filing

Filing Date: 2019-12-20

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>tm1926600d1_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in"><B>Exhibit 10.2</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>SEPARATION AND CONSULTING
AGREEMENT</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Separation and Consulting
Agreement (the &ldquo;Agreement&rdquo;), between Otelco Inc. (the &ldquo;Company&rdquo;) and Robert J. Souza (&ldquo;Executive&rdquo;)
dated as of December 19, 2019, shall set forth the terms and conditions of Executive&rsquo;s voluntary retirement as (i) Chief
Executive Officer (&ldquo;CEO&rdquo;) of the Company, (ii) all other positions held in the Company or any of its subsidiaries,
and (iii) a member of the board of directors of the Company (collectively, the &ldquo;Positions&rdquo;), and his continued consulting
services to the Company following retirement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Retirement</U>. Upon Executive&rsquo;s retirement from the Positions effective December 31, 2019, all outstanding unvested
equity grants issued to Executive will become 100% vested. For purposes of this Agreement, &ldquo;retirement&rdquo; shall be a
&ldquo;Separation from Service&rdquo; under Internal Revenue Code Section 409A and the regulations thereunder. Executive shall
no longer be an employee of the Company for any purposes after December 31, 2019, and he shall be entitled to no further payments
or benefits except (i) as set forth herein and (ii) in connection with any bonus payments earned in 2019 and payable in 2020.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Consulting Agreement/Continuation of Obligations</U>. Effective January&nbsp;1, 2020, Executive will provide consulting
services to the Company in order to transition the responsibilities of CEO and maintain continuity of management. This engagement
will continue for a period of twelve (12) months, anticipated to conclude on December&nbsp;31, 2020. Executive responsibilities
will include being available as needed to senior management and the Board of Directors and attendance at Board meetings as requested.
Executive&rsquo;s time commitment under this Agreement will not exceed 20 percent of Executive&rsquo;s current time commitment
as CEO.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Executive&rsquo;s fee
for these services during the engagement will be $350,000.00, which will be paid in four equal quarterly installments, with the
first $87,500.00 installment to be paid beginning on or about the payroll date immediately preceding March 30, 2020, and continuing
through December 31, 2020, payable in accordance with the Company&rsquo;s regular accounts payable policies. Any travel and other
expenses related to attendance at Board meetings will be reimbursed in accordance with the Company&rsquo;s travel and expense policies.
In addition to the above, the Company will transfer to Executive ownership of his current company vehicle.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Executive remains bound
by his obligations in Sections 6, 7, 8, 9 and 10 of his existing &ldquo;Third Amended and Restated Employment Agreement,&rdquo;
dated December 10, 2014 and nothing herein affects those obligations in any manner.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; text-indent: 31.5pt">The compensation
paid hereunder shall constitute &ldquo;net earnings from self-employment,&rdquo; as that term is defined in &sect;&nbsp;1402 of
the Internal Revenue Code. Accordingly, the Company shall not pay or withhold from the compensation referenced in this Agreement
any federal or state income, FICA, FUTA or other taxes. Executive shall prepare and file such federal and state income and other
tax returns as may be required to be prepared and filed and shall pay such federal and state income, self-employment and other
taxes as may be required under applicable laws.</P>

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