Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
(e)
Employment Arrangements for Barrett Mooney, Chief Executive Officer
As previously disclosed in the Current Report on Form 8-K filed on January 21,
2022 (the "Original 8-K"), Mr. Barrett Mooney was re-appointed to serve as the
Chief Executive Officer of AgEagle Aerial Systems Inc. (the "Company"). At such
time, the Compensation Committee of the board of directors (the "Compensation
Committee") had not yet made recommendations with respect to Mr. Mooney's new
employment agreement and compensation. The Original 8-K disclosed that the
Company would file a subsequent Current Report on Form 8-K to disclose such new
arrangements. This Form 8-K is being filed in part to disclose Mr. Mooney's
approved compensation arrangements.
Pursuant to an employment offer letter between the Company and Mr. Mooney, dated
March 15, 2022, Mr. Mooney, in his role as Chief Executive Officer, will receive
an annual base salary of $380,000 per year, subject to annual performance
reviews and revisions by and at the sole discretion of the Compensation
Committee. In accordance with the 2022 Executive Compensation Plan and as
approved by the Compensation Committee, Mr. Mooney will be eligible to receive
an annual cash bonus of up to 35% of his then-current base salary and restricted
stock units ("RSUs") with a fair value of up to $350,000, based upon achievement
of the performance milestones established in the 2022 Executive Compensation
Plan. In addition, Mr. Mooney is entitled to receive a quarterly grant of 25,000
stock options at the fair market value of the Company's Common Stock on the
grant date, vesting over two years, and exercisable for a period of five years.
Mr. Mooney is provided with severance benefits in the event of termination
without cause or for good reason, as defined in her amended employment offer
letter. Upon execution of a severance agreement entered into between Mr. Mooney
and the Company, Mr. Mooney will be entitled to the following benefits: (i) six
months of base salary, paid in the form of salary continuation, in accordance
with the terms of a Separation Agreement to be entered into at the time of
termination; (ii) reimbursement of COBRA health insurance premiums at the same
rate as if the executive officer were an active employee of the Company
(conditioned on the executive officer having elected COBRA continuation
coverage) for a period of 6 months or, if earlier, until the executive officer
is eligible for group health insurance benefits from another employer; and (iii)
a grant of fully-vested RSUs with a fair market value of $190,000 on the date of
termination of employment, pursuant to the terms of the separation agreement.
The severance benefits are conditioned upon (i) continued compliance in all
material respects with Mr. Mooney's continuing obligations to the Company,
including, without limitation, the terms of the amended employment offer letter
and of the confidentiality agreement that survive termination of employment with
the Company, and (ii) signing (without revoking if such right is provided under
applicable law) a separation agreement and general release in a form provided to
the executive officer by the Company on or about the date of termination of
employment.
In the event the Board of Directors (the "Board") determines in its discretion
that Mr. Mooney must relocate his principal place of performance of her duties,
the Company shall pay and/or reimburse his expenses in connection with such
relocation.
Employment Arrangements for Nicole Fernandez-McGovern, Chief Financial Officer
On February 7, 2022, the Company's Board, upon recommendation of the
Compensation Committee, approved the 2021 Executive Bonus Award comprising of
$10,000 in cash bonus and the issuance of 62,500 RSUs for Ms. Nicole
Fernandez-McGovern, the Company's Chief Financial Officer.
Approval of 2022 Executive Compensation Plan and Awards to Mr. Mooney and Ms.
Fernandez-McGovern
On February 7, 2022, the Company's Board, upon recommendation of the
Compensation Committee, also approved the adoption of its 2022 Executive
Compensation Plan pursuant to which, if all performance milestones related to
the Company's operational, financial and strategic targets are met, Mr. Mooney
and Ms. Fernandez-McGovern will be eligible to receive the following:
(i) Mr. Mooney is eligible to receive an annual cash bonus of up to 35% of his
then-current base salary and RSUs with a fair value of up to $350,000, based
upon achievement of the performance milestones established in the 2022 Executive
Compensation Plan. In addition, Mr. Mooney is entitled to receive a quarterly
grant of 25,000 stock options at the fair market value of the Company's Common
Stock on the grant date, vesting over two years, and exercisable for a period of
five years; and
(ii) Ms. Fernandez-McGovern is eligible to receive an annual cash bonus of up to
35% of her then-current base salary and RSUs with a fair value of up to
$300,000, based upon achievement of the performance milestones established in
the 2022 Executive Compensation Plan. Furthermore, Ms. Fernandez-McGovern is
entitled to a service-based bonus, comprised of a cash bonus of $50,000 and RSUs
with a fair value of $50,000, which is payable in October 2022. In addition, Ms.
Fernandez-McGovern is entitled to receive a quarterly grant of 25,000 stock
options at the fair market value of the Company's Common Stock on the grant
date, vesting over two years, and exercisable for a period of five years.
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