Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

    Date of Report (Date of earliest event reported): June 13, 2024

   

American Well Corporation

(Exact name of Registrant as Specified in Its Charter)


Delaware	001-39515	20-5009396
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

75 State Street 26th Floor
Boston, Massachusetts		02109
(Address of Principal Executive Offices)		(Zip Code)

    Registrant’s Telephone Number, Including Area Code: 617 204-3500

   

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 Par Value	AMWL	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

The information set forth under Item 5.02 below is incorporated in its entirety herein by reference. The Company's Press Release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Resignation of President & Co-Chief Executive Officer

Dr. Roy Schoenberg resigned as the President & Co-Chief Executive Officer of American Well Corporation (the “Company”), effective June 13, 2024. Dr. Schoenberg’s decision to resign was related to his appointment as our Executive Vice Chairman as described below and did not involve any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

Appointment of Executive Vice Chairman

On June 13, 2024, the Company entered into both a Transition Agreement (the “Transition Agreement”) and an Amended and Restated Employment Agreement (the “Employment Agreement”) with Dr. Schoenberg to become the Company’s Executive Vice Chairman, effective immediately. Pursuant to the Transition Agreement, Dr. Schoenberg (i) will receive an annual base salary of $325,000 (which may increase so that this salary is maintained at a level equal to 50% of the Company’s Chief Executive Officer), (ii) will be eligible for an annual target bonus of 150% of his annual base salary; and (iii) will receive transition benefits equal to $1,950,000 that fully satisfy any potential severance obligations and the full acceleration of all of his outstanding equity awards (except for those awards subject to the Performance Stock Unit Agreement, dated May 11, 2022 (“PSUs”)).

The Employment Agreement provides that if Dr. Schoenberg’s employment as Executive Vice Chairman is involuntarily terminated (terminated without Cause (as defined in the Employment Agreement) or with Good Reason (as defined in the Employment Agreement)), conditioned on Dr. Schoenberg’s execution and non-revocation of a release of claims, Dr. Schoenberg will be entitled to receive the following: Accrued Compensation (as defined in the Employment Agreement) through the date of termination of his employment as Executive Vice Chairman; any earned but unpaid annual bonus amounts, including a pro rata annual bonus for the year in which Dr. Schoenberg’s employment terminates (with such pro rata annual bonus to be based on actual performance); full acceleration of all equity awards (unless otherwise provided in the applicable award agreements) but for the PSUs; and COBRA benefits for a 36 month period following the date of termination. Dr. Schoenberg will not be entitled to any severance payments in the event of a termination of employment for any reason. To the extent applicable, such payments are subject to reduction so that they will not be subject to the excise tax imposed under Section 4999 of the Internal Revenue Code.

The Agreements also include customary confidentiality and assignment of intellectual property obligations, as well as non-competition and non-solicitation restrictions that continue for 24 months following termination of employment.

The foregoing summary description of the Agreements is not complete and is subject to, and qualified in its entirety by reference to, the full text of the Agreements, which are filed as Exhibits 10.1 and 10.2 to this Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is being filed herewith:


10.1		Transition Agreement between American Well Corporation and Dr. Roy Schoenberg, dated June 13, 2024

10.2		Amended and Restated Employment Agreement between American Well Corporation and Dr. Roy Schoenberg, dated June 13, 2024

99.1		Press Release, dated June 13, 2024, issued by American Well Corporation.

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			AMERICAN WELL CORPORATION

Date:	June 13, 2024	By:	/s/ Bradford Gay
			Bradford Gay Senior Vice President, General Counsel

Exhibit 10.1

EXECUTION

AMERICAN WELL CORPORATION

Transition Agreement

This TRANSITION AGREEMENT (this “Agreement”), dated as of June 13, 2024 is entered into by and between American Well Corporation, a Delaware corporation (the “Company”), and Roy Schoenberg (the “Executive”). Capitalized terms not defined herein shall have the meanings ascribed to them in the Employment Agreement, dated as of June 18, 2020, by and between the Company and the Executive (the “Employment Agreement”).

WHEREAS, the Executive currently serves as President and co-Chief Executive Officer of the Company pursuant to the Employment Agreement;

WHEREAS, the parties have determined that the Executive’s employment with the Company as President and co-Chief Executive Officer will transition to Executive Vice Chairman as of June 13, 2024 (the “Transition Date”) pursuant to the terms and conditions set forth in this Agreement;

WHEREAS, the Company and the Executive have mutually agreed that the Executive will continue employment with the Company in an officer capacity from and after the Transition Date as Executive Vice Chairman pursuant to the terms of the Amended and Restated Employment Agreement, dated as of even date herewith, by and between the Company and the Executive (the “Revised Employment Agreement”); and

WHEREAS, the Company and the Executive now desire to enter into a mutually satisfactory arrangement concerning, among other things, the transition of Executive’s service as President and Co-Chief Executive Officer to Executive Vice Chairman on the Transition Date and other matters related thereto.

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive hereby agree as follows:

Transition in Service. The Company and the Executive hereby acknowledge and agree that the Executive’s employment with the Company as President and co-Chief Executive Officer shall terminate on the Transition Date, and by virtue of executing this Agreement, and without any further action by the Executive, the Executive hereby resigns the Executive’s positions as President and co-Chief Executive Officer of the Company as of the Transition Date. As of the Transition Date, the Executive shall continue to be employed by the Company in an officer capacity as Executive Vice Chairman pursuant to the terms of the Revised Employment Agreement until Executive’s employment with the Company has terminated pursuant to the terms thereof. For purposes of the Revised Employment Agreement, the Company and the Executive mutually agree that the Transition Date shall be treated as a “separation from service” under Section 409A, and the Executive’s time commitment to the Company as Executive Vice Chairman pursuant to the terms of the Revised Employment Agreement shall be consistent with such treatment. The

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Company and the Executive acknowledge and agree that the Transition Date shall not constitute a “Termination of Service” pursuant to the that certain Performance Share Unit Agreement by and between the Company and the Executive, dated May 11, 2022 (the “2022 PSU Award”), and that, as of the Transition Date, the 2022 PSU Award shall remain outstanding and eligible to vest pursuant to the terms thereof (including with respect to the term of the existing Performance Period) for so long as the Executive remains in Service (within the meaning of the 2022 PSU Award), whether pursuant to the Revised Employment Agreement or otherwise.

Transition Payments and Benefits. In connection with the Executive’s “separation from service” under Section 409A from the Company, on the Transition Date, the Company shall pay or provide to the Executive the payments and benefits set forth in this Section 2.

(a)

Accrued Benefits. As soon as practicable after the Transition Date (and, in any event, within 30 days following the Transition Date or as otherwise required by applicable law), the Company shall pay or provide the Executive with (i) any previous compensation which the Executive has previously deferred (including any interest earned or credited thereon), in accordance with the terms and conditions of the applicable deferred compensation plans or arrangements then in effect, and (ii) any amount or benefit as provided under any benefit plan or program with the Company.

(b)

Transition Pay and Benefits. As of the Transition Date, subject to the Executive’s (or his estate’s) execution and delivery of a release of claims in favor of the Company in the form attached hereto as Annex A (the “Release”) within 50 days following the Transition Date and non-revocation within the time period set forth therein, the Company shall provide the Executive with the following (subject, in each case, to any delay in payment required by Section 9 (Section 409A) of the Revised Employment Agreement):

(i)

an amount in cash equal to $1,950,000, payable in equal installments on the Company’s regular payroll dates during the thirty-six (36)-month period following the Transition Date; and

(ii)

each outstanding equity award granted by the Company, as set forth on Exhibit A attached hereto, other than the 2022 PSU Award, shall vest in full as of the Transition Date and all outstanding stock options shall remain exercisable for their full term.

(c)

Company Acknowledgment. The Company, on behalf of its and its subsidiaries and affiliates, represents that as of the Transition Date, there are no known claims, demands, causes of action and liabilities of any kind whatsoever, which it or they had, now have or may have against the Executive as of the date of the Transition Date, by reason of any actual or alleged act, omission, transaction, practice, conduct, statement, occurrence, or any other matter related to the Executive’s employment with the Company or otherwise.

Restrictive Covenants; Return of Company Property; Remedies.

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(a)

The Company and the Executive acknowledge and agree that the covenants set forth in Sections 11, 12 and 14 of the Revised Employment Agreement, and the Company’s right to the remedies set forth in Section 13 of the Revised Employment Agreement, in each case, shall remain in full force and effect following the Transition Date in accordance with their respective terms.

(b)

Notwithstanding the foregoing Section 3(a) or anything to the contrary in the Revised Employment Agreement, the Company acknowledges and agrees that the Executive shall not be restricted under Section 12(b) of the Revised Employment Agreement (Covenant Not to Compete) from becoming involved in any capacity (whether as an employee, director, officer, consultant, partner, member, manager or otherwise) in any entity unless the Company can demonstrate that such entity is (i) actually competing or has demonstrable and material plans to intend to compete, or has in the prior 24 months actually competed (and has not abandoned such competitive activities), with the Company for any contract or for the same business in any request-for-proposal (RFP) or (ii) listed as a competitor of the Company in the Gartner or KLAS industry publications (in the case of either (i) or (ii), a “Direct Competitor”). The Executive will notify the Board of his potential involvement in any entity engaged in the digital healthcare or telehealth business, and the Board will promptly review to confirm such entity is not a Direct Competitor. If the Board confirms such entity is not a Direct Competitor, then it will promptly notify the Executive in writing, and the Executive may share such writing with the other entity. If the Board believes such entity to be a Direct Competitor, then it will promptly provide evidence that it actually competes with the Company to the Executive for his review and provide the Executive with an opportunity to be heard, with counsel, before the Board to discuss such determination.

Certain Tax Matters. Sections 9 (Section 409A) and 15(f) (Parachute Payments) of the Revised Employment Agreement are incorporated by reference, mutatis mutandis, as though fully set forth herein.

Miscellaneous.

(a)

Successors and Assigns.

(i)

This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and permitted assigns. The Company may not assign or delegate any rights or obligations hereunder except to a successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, as applicable. The term “the Company” as used herein shall mean a corporation or other entity acquiring all or substantially all the assets and business of the Company, as the case may be, (including this Agreement) whether by operation of law or otherwise.

(ii)

Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Executive, the Executive’s beneficiaries or legal representatives, except by will or by the laws of descent and distribution.

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(iii)

This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal personal representatives, and by the Executive’s beneficiaries in the event of his death.

(b)

Notice. For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or sent by certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to each other party; provided that all notices to the Company shall be directed to the attention of the General Counsel of the Company. All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.

(c)

Indemnity Agreement. The Company acknowledges and agrees that it shall indemnify and hold the Executive harmless to the fullest extent permitted by applicable law for actions taken as a director or officer of the Company, pursuant to the terms of the Indemnification Agreement previously entered into between the Company and the Executive.

(d)

Modification. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by any party which are not expressly set forth in this Agreement.

(e)

Arbitration. Section 15(h) of the Revised Employment Agreement is incorporated by reference, mutatis mutandis, as though fully set forth herein.

(f)

Governing Law; Effect of Other Law. Sections 15(i) and 15(j) of the Revised Employment Agreement are incorporated by reference, mutatis mutandis, as though fully set forth herein.

(g)

Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements, term sheets, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof, including without limitation any term sheets or other similar presentations (in each case of the foregoing, other than with respect to any intellectual property related matters addressed in any such prior agreements, term sheets, understandings or arrangements).

(h)

Section Headings. The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement.

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(i)

Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement. Signatures transmitted via facsimile or PDF will be deemed the equivalent of originals.

[Signature Page Follows]

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

    AMERICAN WELL CORPORATION

   

    By:  /s/ Bradford Gay

   

    Name: Bradford Gay

   

    Title:  SVP & General Counsel

   

    EXECUTIVE

   

    /s/ Roy Schoenberg

   

    Roy Schoenberg

   

[Signature Page to R. Schoenberg Transition Agreement]

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ANNEX A

GENERAL RELEASE

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Executive does hereby knowingly and voluntarily release and forever discharge the “Releasees” hereunder, consisting of the Company, and its partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents and, in their capacities as such, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”) in any way arising out of, based upon, or related to the employment or termination of employment of the Executive by the Releasees, or any of them, which the Executive now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof. The Claims released herein shall include, Claims in any way arising out of, based upon, or related to the employment or termination of employment of the Executive by the Releasees, or any of them, relating to any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to terminate the employment of the Executive; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and Claims under Mass. Gen. Laws c. 149 Section 148, et. seq. (the Massachusetts Wage Act), which include Claims for failure to pay earned wages, failure to pay overtime, failure to pay earned commissions, failure to timely pay wages, failure to pay accrued vacation or holiday pay, failure to furnish appropriate pay stubs, improper wage deductions, and failure to provide proper check-cashing facilities. Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or claims of the Executive (i) to payments or benefits under Section 2 of this Agreement, (ii) to payments or benefits under any equity award agreement between the Executive and the Company, (iii) to accrued or vested benefits the Executive may have, if any, as of the date hereof under any applicable plan, policy, practice, program, contract or agreement with the Company, (iv) to any Claims, including claims for indemnification and/or advancement of expenses arising under any indemnification agreement between the Executive and the Company, under the bylaws, certificate of incorporation or other similar governing document of the Company or under any directors’ and officers’ liability insurance policies of the Company, (v) to any Claims which cannot be waived by an employee under applicable law or (vi) with respect to the Executive’s right to communicate directly with, cooperate with, or provide information to, any federal, state or local government authority or regulator.

IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

(A) THE EXECUTIVE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

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(B) THE EXECUTIVE HAS FIFTY (50) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

(C) THE EXECUTIVE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.

The Executive represents and warrants that there has been no assignment or other transfer of any interest in any Claim which the Executive may have against Releasees, or any of them, and the Executive agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer. It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the Executive under this indemnity.

Notwithstanding anything herein, the Executive acknowledges and agrees that, pursuant to 18 USC Section 1833(b), the Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. The Executive further acknowledges that he is not waiving the right to file an administrative charge or participate in an administrative investigation or proceeding with the Equal Employment Opportunity Commission or any other local, state, or federal administrative body or government agency, local city commission on human rights, or law enforcement prohibiting waiver of such right; provided, however, that the Executive hereby disclaims and waives any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding, excepting only any monetary award to which he may become entitled pursuant to Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act or other relief in connection with protected whistleblower activity. Nothing herein prohibits the Executive from communicating with any governmental agency or entity or regulatory or any law enforcement authority or making other disclosures under the whistleblower provisions of any applicable law, rule or regulation.

The Executive further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the Executive.

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IN WITNESS WHEREOF, the Executive has executed this Release this 13th day of June, 2024.

    EXECUTIVE

   

    /s/ Roy Schoenberg

   

    Roy Schoenberg

   

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Exhibit A

Company Equity Awards

•

81,245 unvested time vesting Restricted Stock Units granted April 15, 2021 (vesting)

•

7,000,000 unvested PSUs granted May 16, 2022 (the 2022 PSUs) (not vesting)

•

72,019 vested Incentive Stock Options granted October 25, 2018

•

1,692,864 vested Nonqualified Stock Options granted October 25, 2018

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Exhibit 10.2

EXECUTION

AMERICAN WELL CORPORATION
AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is hereby entered into as of June 13, 2024 (the “Effective Date”) by and between American Well Corporation, a Delaware corporation (the “Company”), and Roy Schoenberg, an individual (the “Executive”) (hereinafter collectively referred to as “the parties”). Where the context requires, references to the Company shall include the Company’s subsidiaries and affiliates.

RECITALS

WHEREAS, the Company and Executive entered into that certain Employment Agreement, dated as of June 18, 2020 (the “Prior Agreement”);

WHEREAS, on even date herewith, the Company and Executive entered into the Transition Agreement;

WHEREAS, the Company and Executive desire to amend and restate the Prior Agreement; and

WHEREAS, the Company desires to continue to employ Executive for the period provided in this Agreement, 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 contained herein, it is agreed as follows:

Term; Effect on Other Agreements. The employment term (the “Employment Term”) of Executive’s employment under this Agreement shall be for the period commencing on the Effective Date and shall continue until terminated in accordance with Section 6.

Employment. During the Employment Term:

(a)

Executive shall be employed as a principal officer of the Company in the position of Executive Vice Chairman, beginning on June 13, 2024 (the “Transition Date”). Executive shall perform the duties and undertake the responsibilities as are customary for such position(s) and as reasonably requested by the board of directors of the Company (the “Board”) from time to time, and the Executive shall have the authority customary of such position(s) and as necessary to perform such duties and responsibilities, but shall have no special authority with respect to the Board or the executive officers of the Company. Executive shall report to the Board. Executive shall continue to serve on the Board during the Employment Term and thereafter for the duration of his current Board term as otherwise provided in the Company’s governing documents, and the Company intends to nominate and recommend Executive for re-election to the Board following his current term.

(b)

Executive shall devote such professional time and attention as reasonably necessary to discharge the duties and responsibilities of Executive hereunder; provided, that the Company and Executive agree that it is intended that Executive shall provide services to the Company that, as of the Transition Date, shall result in Executive being treated as if he has had a “separation from service” from the Company under Section 409A of the Internal Revenue Code of 1986, as amended and any regulations relating thereto (“Section 409A”). Executive may manage personal and family investments, engage in educational activities, participate in industry organizations and charitable endeavors and, with the consent of the Board (which shall not be unreasonably withheld), serve on up to two (2) for-profit boards of directors, so long as such activities do not interfere with the performance of Executive’s responsibilities hereunder. It is understood that, during Executive’s employment by the Company, Executive shall not engage in any activities that constitute a conflict of interest with the interests of the Company or its direct and indirect subsidiaries.

(c)

Executive shall be subject to and shall abide by each of the personnel policies applicable to senior executives, including but not limited to any policy restricting pledging and hedging investments in Company equity by Company executives, any policy the Company adopts regarding the recovery of incentive compensation applicable if a financial metric used to determine the amount of incentive

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compensation has been miscalculated, the Company is required to restate its financial statements or Executive engages in significant illegal conduct (but in the case of illegal conduct the clawback shall be limited to the extent such illegal conduct resulted in inappropriate payment of incentive compensation) (sometimes referred to as “clawback”) and any additional clawback provisions as required by law and applicable listing rules, including, without limitation, the Company’s Policy Regarding Recovery of Erroneously Awarded Compensation. This Section 2(c) shall survive the termination of the Employment Term.

(d)

Subject to Sections 6, 7 and 8 hereof, Executive’s employment with the Company is “at will,” such that each of Executive or the Company has the option to terminate Executive’s employment at any time, with or without advance notice, and with or without Cause or with or without Good Reason; provided, that, a termination of Executive’s employment for any reason other than for Cause shall not result in a termination of Executive from the Board. This Agreement does not constitute an express or implied agreement of continuing or long- term employment.

Annual Compensation.

(a)

Base Salary. During the Employment Term, Executive shall be paid an annual base salary of US $325,000, or if greater, 50% of the annual base salary of the Company’s chief executive officer (“Base Salary”). The Base Salary shall be payable in accordance with the Company’s regular payroll practices as then in effect.

(b)

Annual Bonus. Subject to the terms of the Company’s annual cash bonus program as in effect from time to time and the provisions hereof, for each fiscal year of the Company ending during the Employment Term (commencing with the 2024 fiscal year), Executive shall be eligible to receive a target annual cash bonus of up to 150% of Base Salary, or if greater, 50% of the target annual cash bonus of the Company’s chief executive officer (such target bonus, as may hereafter be increased, the “Target Bonus”), with the opportunity for increased payment upon performance overachievement as determined by the Board in its discretion. Annual bonuses, if any, will be payable after the close of the applicable fiscal year, but in any event prior to March 15 of the following calendar year. The criteria for, and attainment of, Executive’s annual bonus will be at the sole discretion of the Board following consultation with Executive and may be based on the achievement of both corporate and personal performance objectives; provided, that, the Company agrees and acknowledges that performance for Executive’s annual bonus will be determined in a manner consistent with how performance is determined for the Company’s chief executive officer; provided, further, that for the 2024 fiscal year, Executive’s bonus opportunity will be a blended amount equal to the following amounts, in each case, prorated for the portion of the 2024 fiscal year that elapsed prior to and following the Effective Date, respectively: (i) Executive’s full bonus opportunity as in effect prior to the Effective Date and (ii) the bonus opportunity set forth in this Section 3(b).

(c)

Annual Review. On an annual basis during the Employment Term, the Board shall review and analyze the then-current Base Salary and Target Bonus of Executive and determine, in its discretion, whether increases are necessary or advisable based on merit, to meet industry benchmarks or otherwise, taking into account market practice and the performance of both the Company and Executive. The Base Salary and Target Bonus, as may be increased from time to time, shall not thereafter be decreased.

(d)

Ongoing Grants. Executive shall be eligible for consideration for equity grants during the Employment Term in the sole discretion of the Board (the “Ongoing Grants”). Any Ongoing Grants shall be subject to the availability of shares of the Company’s common stock at the time of grant and such vesting terms and conditions as may be determined by the Board in its discretion, and both the amount and type of such grants shall be based on merit, to meet industry benchmarks or otherwise, taking into account market practice and the performance of both the Company and Executive, but not less than 50% of the amount of such grants to the Company’s chief executive officer

(e)

Corporate Transaction. All of Executive’s outstanding equity awards shall vest and be paid or become exercisable, as applicable, in full immediately prior to a Corporate Transaction (as defined in Exhibit B).

(f)

No Board Compensation. Executive acknowledges and agrees that during the Employment Term, this Section 3 set forth all of the compensation that Executive shall receive from the Company and that Executive is not entitled to any additional compensation with respect to his service on the Board during the Employment Term, including, without limitation, pursuant to the Company’s Non-Employee Director Compensation Policy.

Share Ownership Commitment. Executive agrees to comply with any share ownership requirements adopted by the Company applicable to Executive, which shall be on the same terms as similarly situated executives of the Company.

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Other Benefits. During the Employment Term:

(a)

Employee Benefits. Unless prohibited by applicable law, Executive shall be eligible to participate in the various benefits offered by the Company on terms and conditions that are no less favorable than other senior executives of the Company, including the Company’s group medical and dental plans, life and disability insurance and 401(k) plan, which shall be no less favorable in the aggregate than those benefits provided by the Company as of the date hereof. Benefits may be modified or changed from time to time at the sole discretion of the Company (but not in a manner discriminatory against Executive), and the provision of such benefits to Executive in no way changes or impacts Executive’s status as an at-will employee. The Company’s present benefit structure and other important information about the benefits for which Executive may be eligible are described in the Company’s benefits summary booklet and in the Company’s employee handbook. Where a benefit is subject to a formal plan (for example, medical insurance or life insurance), eligibility to participate in and receive any particular benefit is governed solely by the applicable plan document.

(b)

Business Expenses. Upon submission of proper invoices in accordance with, and subject to, the Company’s normal policies and procedures, Executive shall be entitled to receive prompt reimbursement of all reasonable out-of-pocket business, entertainment and travel expenses incurred by Executive in connection with the performance of Executive’s duties hereunder. The Company shall provide for travel reimbursements materially consistent with those in effect as of the date hereof.

(c)

Paid Time Off. Executive shall be entitled to participate in the Company’s unlimited Personal Paid Time Off Policy.

Termination. Executive’s employment with the Company hereunder may be terminated under the circumstances set forth below.

(a)

Death. Executive’s employment shall be terminated as of the date of Executive’s death and Executive’s beneficiaries shall be entitled to the benefits provided in Section 8(b) hereof.

(b)

Disability. The Board may terminate Executive’s employment, on written notice to Executive after having established Executive’s Disability and while Executive remains Disabled, and Executive shall be entitled to the benefits provided in Section 8(b) hereof. For purposes of this Agreement, “Disability” shall have the meaning assigned to such term in the Company’s 2020 Equity Incentive Plan.

(c)

Cause. The Board, following the adoption of an affirmative resolution of at least 75% of the Board (excluding Executive and any relative of Executive), may terminate Executive’s employment for Cause (as defined in Exhibit B) effective as of the date of the Notice of Termination (as defined in Section 7 hereof) and Executive shall be entitled to the benefits provided in Section 8(a) hereof.

(d)

Without Cause. The Board may terminate Executive’s employment without Cause and Executive shall be entitled to the benefits provided in Section 8(b) hereof.

(e)

Good Reason. Executive may terminate Executive’s employment with Good Reason (as defined in Exhibit B), subject to this Section 6(e) and Executive shall be entitled to the benefits provided in Section 8(b) hereof.

(f)

Without Good Reason. Executive may voluntarily terminate Executive’s employment without Good Reason by delivering to the Company a Notice of Termination not less than thirty (30) days prior to the termination of Executive’s employment and the Company shall have the option of terminating Executive’s duties and responsibilities prior to the expiration of such thirty (30) day notice period (in which case Executive shall not receive any payment of Executive’s salary or other compensation for the balance of such thirty (30) day period), and Executive shall be entitled to the benefits provided in Section 8(a) hereof through the last day of such notice period.

(g)

Retirement. Executive may terminate Executive’s employment upon Executive’s retirement in accordance with the terms of a retirement plan or policy of the Company approved by the Board and applicable to Executive (a “Company Retirement Plan”), and Executive shall be entitled to the benefits provided in Section 8(c) hereof.

(h)

Cessation of Board Service. Unless otherwise agreed with the Company, Executive’s employment shall terminate upon Executive ceasing to be on the Board, and Executive shall be entitled to the benefits provided in Section 8(c) hereof.

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Notice of Termination. Any purported termination by Executive shall be communicated by written Notice of Termination to the Company. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which indicates a termination date, the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated. For purposes of this Agreement, no such purported termination of Executive’s employment hereunder shall be effective without such Notice of Termination (unless waived by the party entitled to receive such notice); provided that the Company may not challenge a Good Reason termination based upon a lack of “reasonable detail” regarding the basis for termination of Executive’s employment as long as Executive otherwise meets the notice requirements set forth in Section 6(e) hereof.

Compensation Upon Termination. Upon termination of Executive’s employment during the Employment Term, Executive shall be entitled to the following benefits; provided, however, that any such benefits to which Executive is hereunder entitled shall be offset by those benefits that Executive receives, if any, under applicable law or otherwise:

(a)

Termination by the Company for Cause or by Executive Without Good Reason. If Executive’s employment is terminated by the Company for Cause or by Executive without Good Reason, the Company shall pay Executive all amounts earned or accrued hereunder through the termination date, including:

(1)

reimbursement for reasonable and necessary expenses incurred by Executive on behalf of the Company for the period ending on the termination date, pursuant to the procedures of the Company’s applicable policies;

(2)

any previous compensation which Executive has previously deferred (including any interest earned or credited thereon), in accordance with the terms and conditions of the applicable deferred compensation plans or arrangements then in effect;

(3)

equity and incentive awards, to the extent previously vested, shall be paid or delivered to Executive in accordance with the terms of such awards; and

(4)

any amount or benefit as provided under any benefit plan or program, and any accrued, but unpaid vacation (the foregoing items in clauses (1) through (4) being collectively referred to as the “Accrued Compensation”).

(b)

Termination by the Company Without Cause, by Executive for Good Reason or by the Company for Disability or Death. If Executive’s employment with the Company is terminated by the Company without Cause, by Executive for Good Reason or by the Company for Disability or by reason of Executive’s death, then, subject to Section 15(e) hereof, Executive shall be entitled to the benefits provided in this Section 8(b).

(1)

The Company shall pay to Executive (or Executive’s beneficiaries, as applicable) any Accrued Compensation;

(2)

The Company shall pay to Executive (or Executive’s beneficiaries, as applicable) any bonus earned but unpaid in respect of any fiscal year preceding the termination date, and such payment shall be made within sixty (60) days following the termination date;

(3)

The Company shall pay to Executive (or Executive’s beneficiaries, as applicable) a pro rata bonus for the year in which Executive’s employment terminates, in an amount equal to the product of (x) the quotient of the number of days Executive was employed in the applicable year, divided by 365 and (y) the bonus Executive would have earned for such year had he remained employed through year-end (and, for the avoidance of doubt, calculated in accordance with Section 3(b) with respect to fiscal year 2024), within the time period set forth in Section 3(b);

(4)

Except with respect to Executive’s 2022 PSU Awards (the “2022 PSUs”), each unvested equity award held by Executive at the time of termination shall vest in full (with any performance goals applicable to such unvested equity award treated as achieved at target), except to the extent the applicable award agreement evidencing such unvested equity award explicitly provides otherwise, in which case such terms will control; provided, that Executive will receive no less than prorated vesting through Executive’s termination date, and all outstanding stock options shall remain exercisable for their full term;

(5)

The 2022 PSUs shall be treated in accordance with the terms of such 2022 PSUs (including, without limitation, taking into account the end of the Performance Period (as defined in the award agreement evidencing the grant of the 2022 PSUs)); and

(6)

If Executive is participating in the Company’s group health insurance plans on the effective date of termination, and Executive timely elects and remains eligible for continued coverage under the

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Consolidated Omnibus Budget Reconciliation Act, or, if applicable, state or local insurance laws (collectively, “COBRA”), the Company shall pay that portion of Executive’s premiums that the Company was paying prior to the effective date of termination for the 36-month period following Executive’s termination date and, if necessary due to COBRA restrictions, provide alternative coverage for any period beyond the COBRA continuation period if Executive is not receiving comparable coverage from a subsequent employer.

(c)

Termination by Executive due to Executive’s Retirement. If Executive terminates Executive’s employment upon Executive’s retirement pursuant to a Company Retirement Plan, then, subject to Section 15(e) hereof, Executive shall be entitled to the benefits provided in this Section 8(c).

(1)

The Company shall pay to Executive any Accrued Compensation;

(2)

The Company shall pay to Executive any bonus earned but unpaid in respect of any fiscal year preceding the termination date within sixty (60) days following the termination date;

(3)

(4)

Except with respect to the 2022 PSUs, each unvested equity award held by Executive at the time of termination shall vest in full (with any performance goals applicable to such unvested equity award treated as achieved at target), except to the extent the applicable award agreement evidencing such unvested equity award explicitly provides otherwise, in which case such terms will control; provided, that Executive will receive no less than prorated vesting through Executive’s termination date; (provided, further, that any such unvested equity award that is not exempt from Section 409A must vest and be paid out on the scheduled payment dates provided under the applicable award agreement) and all outstanding stock options shall remain exercisable for their full term;

(5)

The 2022 PSUs shall be treated in accordance with the terms of such 2022 PSUs (including, without limitation, taking into account the end of the Performance Period); and

(6)

If Executive is participating in the Company’s group health insurance plans on the effective date of termination, and Executive timely elects and remains eligible for continued coverage under COBRA, the Company shall pay that portion of Executive’s premiums that the Company was paying prior to the effective date of termination for the 36-month period following Executive’s termination date and, if necessary due to COBRA restrictions, provide alternative coverage for any period beyond the COBRA continuation period if Executive is not receiving comparable coverage from a subsequent employer.

(d)

Cessation of Board Services. If Executive’s employment terminates in connection with Executive ceasing to be on the Board, then, subject to Section 15(e) hereof, Executive shall be entitled to the benefits provided in Section 8(b).

(e)

Executive shall not be required to mitigate the amount of any payment provided for under this Section 8 by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment.

Section 409A. This Agreement is intended to comply with, or otherwise be exempt from, Section 409A. The Company shall undertake to administer, interpret and construe this Agreement, to the extent reasonably practicable, in a manner that does not result in the imposition on Executive of any additional tax, penalty or interest under Section 409A. If the Company determines in good faith that any provision of this Agreement would cause Executive to incur an additional tax, penalty or interest under Section 409A, the Company and Executive shall use reasonable efforts to reform such provision, if possible, in a mutually agreeable fashion to maintain to the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A. If a payment obligation under this Agreement arises on account of Executive’s separation from service while Executive is a “specified employee” (as defined under Section 409A), then any payment that constitutes “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall accrue without interest and shall be paid within fifteen (15) days after the end of the six (6) month period beginning on the date of such separation from service or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of Executive’s estate following Executive’s death. Notwithstanding the

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foregoing, nothing in this Agreement or otherwise is intended to, nor does it, guarantee that the payments and benefits under this Agreement will not be subject to any additional tax or other adverse tax consequences under Section 409A or any similar state or local tax law. For purposes of Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

10.

Employee Protection. Nothing in this Agreement or otherwise limits Executive’s ability to communicate directly with and provide information, including documents, not otherwise protected from disclosure by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”), any other federal, state or local governmental agency or commission (“Government Agency”) or self-regulatory organization regarding possible legal violations, without disclosure to the Company. The Company may not retaliate against Executive for any of these activities, and nothing in this Agreement or otherwise requires Executive to waive any monetary award or other payment that Executive might become entitled to from the SEC or any other Government Agency or self-regulatory organization.

11.

Records and Confidential Data.

(a)

Executive acknowledges that in connection with the performance of Executive’s duties during the Employment Term, the Company will make available to Executive, or Executive will have access to, certain Confidential Information (as defined below) of the Company and its subsidiaries. Executive acknowledges and agrees that any and all Confidential Information disclosed to, or learned or obtained by, Executive during the course of Executive’s employment by the Company or otherwise, whether developed by Executive alone or in conjunction with others or otherwise, shall be and is the sole and exclusive property of the Company and its subsidiaries and Executive hereby assigns to the Company any and all right, title and interest Executive may have or acquire in and to such Confidential Information.

(b)

Except as provided in Section 10 hereof, the Confidential Information will be kept confidential by Executive, will not be used in any manner which is detrimental to the Company, will not be used other than in connection with Executive’s discharge of Executive’s duties hereunder, and will be safeguarded by Executive from unauthorized disclosure. Executive acknowledges and agrees that the confidentiality restrictions set forth herein shall apply to any and all Confidential Information disclosed to, or learned or obtained by, Executive, whether before, on or after the date hereof. For the avoidance of doubt, nothing in this Section 11(b) shall prevent Executive from (i) complying with a valid legal requirement (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil or criminal investigative demand or similar process) to disclose any Confidential Information, (ii) using Confidential Information as reasonably necessary in connection with arbitration or litigation between Executive and the Company or any of its affiliates or (iii) exercising any legally protected whistleblower rights (including under Rule 21F under the Securities Exchange Act of 1934, as amended) as set forth in Section 10.

(c)

Following the termination of Executive’s employment hereunder, as soon as possible after the Company’s written request, Executive will return to the Company all written Confidential Information which has been provided to Executive and Executive will return or destroy (or cooperate with any reasonable Company requested process to return or destroy) all copies of any analyses, compilations, studies or other documents (including any email or other electronic correspondence) prepared by Executive or for Executive’s use containing or reflecting any Confidential Information, except as provided in Section 10. Within five (5) business days of the receipt of such request by Executive, Executive shall, upon written request of the Company, deliver to the Company a document certifying that such written Confidential Information has been returned or destroyed in accordance with this Section 11(c).

(d)

For the purposes of this Agreement, “Confidential Information” shall mean all confidential and proprietary information of the Company and its subsidiaries, including, without limitation, information derived from reports, investigations, experiments, research, work in progress, drawings, designs, plans, proposals, codes, marketing and sales programs, client lists, client mailing lists, supplier lists, financial projections, cost summaries, pricing formula, marketing studies relating to prospective business opportunities and all other know-how, trade secrets, inventions, concepts, ideas, materials, or information developed, prepared or performed for or by the Company or its subsidiaries (in each case, including any email or other electronic correspondence). For purposes of this Agreement, the Confidential Information shall not include, and Executive’s obligations shall not extend to, information that Executive can demonstrate with competent evidence is (i) generally available to the public without any action or involvement by Executive or (ii) independently obtained by Executive from a third party on a non-confidential and authorized basis. Notwithstanding anything in this Section 11 to the contrary, Executive may disclose Confidential Information: (1) as set forth in Section 10; and (2) to the extent it is required to be disclosed by law or pursuant to judicial process or administrative subpoena. To the extent that Confidential Information is required to be disclosed by law, governmental investigation or pursuant to judicial process or administrative

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subpoena, Executive shall, to the extent legally permitted, first give written notice to the Company and reasonably cooperate with the Company (at the Company’s expense) to obtain a protective order or other measures preserving the confidential treatment of such Confidential Information and requiring that the information or documents so disclosed be used only for the purposes required by law, governmental investigation or pursuant to judicial process or administrative subpoena, except as provided in Section 10 and subject to Section 11(e).

(e)

Notwithstanding anything in this Agreement to the contrary, pursuant to the Defend Trade Secrets Act of 2016, the parties hereto acknowledge and agree that Executive shall not have criminal or civil liability under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition and without limiting the preceding sentence, if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and may use the trade secret information in the court proceeding, if Executive (X) files any document containing the trade secret under seal and (Y) does not disclose the trade secret, except pursuant to court order.

(f)

In connection with Executive’s employment with the Company, Executive will not use any confidential or proprietary information Executive may have obtained in connection with employment with any prior employer.

(g)

Executive’s obligations under this Section 11 shall survive the termination of the Employment Term.

12.

Covenant Not to Solicit and Not to Compete; Non-Disparagement.

(a)

Covenants Not to Solicit or to Interfere. To protect the Confidential Information and other trade secrets of the Company and its subsidiaries, Executive agrees, during the Employment Term and for a period of twenty-four (24) months after Executive’s cessation of employment with the Company, not to solicit, hire or participate in or assist in any way in the solicitation or hire of any employees of the Company or any of its subsidiaries (or any person who was an employee of the Company or any of its subsidiaries during the six-month period preceding such action) in any country. For purposes of this covenant, “solicit” or “solicitation” means directly or indirectly influencing or attempting to influence employees of the Company or any of its subsidiaries to become employed with any other person, partnership, firm, corporation or other entity. Executive shall not violate this Section 12(a) by providing a personal reference or by a general advertisement for employees not directly or indirectly targeted at employees of the Company or its subsidiaries.

In addition, to protect the Confidential Information and other trade secrets of the Company and its subsidiaries, Executive agrees, during the Employment Term and for a period of twenty-four (24) months after Executive’s cessation of employment with the Company, not to (x) solicit any client or customer to receive services or to purchase any good or services in competition (through a Prohibited Activity) with those provided by the Company or any of its subsidiaries or (y) interfere or attempt to interfere in any material respect with the relationship between the Company or any of its subsidiaries on one hand and any client, customer, supplier, investor, financing source or capital market intermediary on the other hand, in any country. For purposes of this covenant, “solicit” or “solicitation” means directly or indirectly influencing or attempting to influence clients or customers of the Company or any of its subsidiaries to accept the services or goods of any other person, partnership, firm, corporation or other entity in competition (through a Prohibited Activity) with those provided by the Company or any of its subsidiaries.

Executive agrees that the covenants contained in this Section 12(a) are reasonable and desirable to protect the Confidential Information of the Company and its subsidiaries; provided that solicitation through general advertising or the provision of references shall not constitute a breach of such obligations.

(b)

Covenant Not to Compete.

(1)

To protect the Confidential Information and other trade secrets of the Company and its subsidiaries, and in specific consideration for a cash payment of $1,000, Executive agrees, to the maximum extent permitted by applicable law, not to become involved with any entity that directly or indirectly engages in Prohibited Activities (as defined below) in any country in which the Company or any of its subsidiaries conducts such business, or plans to conduct such business during the Employment Term, during the period commencing with the Employment Term and ending twenty-four (24)

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months after Executive’s cessation of employment with the Company. For the purposes of this Agreement, the term “Prohibited Activities” means directly or indirectly owning any interest in, managing, participating in (whether as an employee, director, officer, consultant, partner, member, manager, representative or agent), consulting with or rendering services to any entity (including, without limitation, Doctor On Demand, MDLive, Teladoc, Epic Systems, Cerner or Zoom)) in (A) the telehealth industry or (B) digital healthcare, that, in the case of clause (B), performs or plans to perform any of the services or manufactures or sells or plans to manufacture or sell any of the products planned, provided or offered by the Company or any of its subsidiaries or any products or services designed to perform the same function or achieve the same results as the products or services planned, provided or offered by the Company or any of its subsidiaries or performs or plans to perform any other services and/or engages or plans to engage in the development, production, manufacture, distribution or sale of any product similar to any planned or actual services performed or products developed, produced, manufactured, distributed or sold by the Company or any of its subsidiaries during the term of Executive’s employment with the Company and its subsidiaries, including, without limitation, any business activity that directly or indirectly provides the research, development, manufacture, marketing, selling or servicing of systems facilitating consumer communications with professional service providers in the digital healthcare field; provided that (i) Prohibited Activities shall not mean Executive’s investment in securities of a publicly traded company (or a non-publicly traded entity through a passive investment) equal to less than five percent (5%) of such company’s outstanding voting securities, (ii) Prohibited Activities following cessation of Executive’s employment shall not include businesses of the Company or its subsidiaries which are reasonably projected, as of the termination date, to represent less than 5% of the consolidated revenues of the Company and its subsidiaries taken as a whole following the termination date, and (iii) Executive shall be permitted to provide services to an entity that has a unit, division, subsidiary or affiliate engaging in a Prohibited Activity so long as Executive does not provide services, directly or indirectly, to such unit, division, subsidiary or affiliate engaging in the Prohibited Activity. Executive agrees that the covenants contained in this Section 12(b) are reasonable and desirable to protect the Confidential Information of the Company and its subsidiaries. Any reference to plans or planned activity in this paragraph shall be limited to plans or planned activities that are based upon material demonstrable actions. Following Executive’s cessation of employment, the prohibitions in this paragraph shall be limited to activities and planned activities (including locations) as of the date of Executive’s termination of employment.

(2)

Notwithstanding the foregoing Section 12(b)(1) or anything to the contrary in this Agreement, the Company acknowledges and agrees that, consistent with the terms and conditions set forth in the Transition Agreement, Executive shall not be restricted under Section 12(b)(1) from becoming involved in any capacity (whether as an employee, director, officer, consultant, partner, member, manager or otherwise) in any entity unless the Company can demonstrate that such entity is (i) actually competing or has demonstrable and material plans to intend to compete, or has in the prior 24 months actually competed (and has not abandoned such competitive activities), with the Company for any contract or for the same business in any request-for-proposal (RFP) or (ii) listed as a competitor of the Company in the Gartner or KLAS industry publications (in the case of either (i) or (ii), a “Direct Competitor”). Executive will notify the Board of his potential involvement in any entity engaged in the digital healthcare or telehealth business, and the Board will promptly review to confirm such entity is not a Direct Competitor. If the Board confirms such entity is not a Direct Competitor, then it will promptly notify Executive in writing, and Executive may share such writing with the other entity. If the Board believes such entity to be a Direct Competitor, then it will promptly provide evidence that it actually competes with the Company to Executive for his review and provide the Executive with an opportunity to be heard, with counsel, before the Board to discuss such determination.

(c)

Non-Disparagement. Executive agrees not to make written or oral statements about the Company, its subsidiaries or affiliates, or its directors, executive officers or non-executive officer employees that are negative or disparaging, except as provided in Section 10 hereof or in the ordinary course of normal employment communications or personnel performance reviews when making such statements is reasonable and appropriate. The Company, as represented by its directors and executive officers, shall not make written or oral statements about Executive that are negative or disparaging other than in the ordinary course of normal employment communications or personnel performance reviews when making such statements is reasonable and appropriate. Notwithstanding the foregoing, nothing in this Agreement or otherwise shall preclude Executive, the Company, its subsidiaries and affiliates, and the Company’s directors and executive

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officers from communicating or testifying truthfully to the extent required by law to any federal, state, provincial or local governmental agency or in response to a subpoena to testify issued by a court of competent jurisdiction or in connection with any litigation or arbitration between Executive and the Company or any of its affiliates or any of its directors, executive officers or non-executive officer employees. Either party may make truthful statements to the extent reasonably necessary to correct any inaccurate public statements made by the other party (including executives or directors of the Company) or in the normal course of permitted competitive actions.

(d)

It is the intent and desire of Executive and the Company that the restrictive provisions of this Section 12 be enforced to the fullest extent permissible under the laws and public policies as applied in each jurisdiction in which enforcement is sought. If any particular provision of this Section 12 shall be determined to be invalid or unenforceable, such covenant shall be amended, without any action on the part of either party hereto, to delete therefrom the portion so determined to be invalid or unenforceable, such deletion to apply only with respect to the operation of such covenant in the particular jurisdiction in which such adjudication is made.

(e)

Executive’s obligations under this Section 12 shall be in full satisfaction of Executive’s services for the Company and its affiliates from the date of his commencement of employment with the Company and shall survive the termination of the Employment Term.

13.

Remedies for Breach of Obligations under Sections 11 or 12 hereof. Executive acknowledges that the Company will suffer irreparable injury, not readily susceptible of valuation in monetary damages, if Executive breaches Executive’s obligations under Sections 11 or 12 hereof. Accordingly, Executive agrees that the Company will be entitled, in addition to any other available remedies, to seek injunctive relief against any breach or prospective breach by Executive of Executive’s obligations under Sections 11 or 12 hereof. Executive agrees that process in any or all of those actions or proceedings may be served by registered mail, addressed to the last address provided by Executive to the Company, or in any other manner authorized by law. This Section 13 shall survive the termination of the Employment Term.

14.

Cooperation.

(a)

Following Executive’s termination of employment for any reason for a period of thirty-six (36) months following such termination, except as provided in Section 10 hereof, Executive agrees to make Executive reasonably available at the request of the Company to cooperate with the Company and its affiliates in matters that materially concern: (i) requests for information about the services Executive provided to the Company and its affiliates during Executive’s employment with the Company and its affiliates, (ii) the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company and its affiliates which relate to events or occurrences that transpired while Executive was employed the Company and its affiliates and as to which Executive has, or would reasonably be expected to have, personal experience, knowledge or information or (iii) any investigation or review by any federal, state or local regulatory, quasi-regulatory or self-governing authority (including, without limitation, the US Department of Justice, the US Federal Trade Commission or the SEC) as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company and its affiliates. Executive’s cooperation shall include: (A) making Executive reasonably available to meet and speak with officers or employees of the Company, the Company’s counsel or any third-parties at the reasonable request of the Company at times and locations to be determined by the Company reasonably and in good faith, taking into account the Company’s business and Executive’s business and personal needs (the “Company Cooperation”) and (B) giving accurate and truthful information at any interviews and accurate and truthful testimony in any legal proceedings or actions (the “Witness Cooperation”). Nothing in this Section 14(a) shall be construed to limit in any way any rights Executive may have at applicable law not to provide testimony with regard to specific matters. Unless required by law or legal process, Executive will not knowingly or intentionally furnish information to or cooperate with any non-governmental entity (other than the Company) in connection with any potential or pending proceeding or legal action involving matters arising during Executive’s employment with the Company and its affiliates, except as provided in Section 10. In addition, at the request of the Company, Executive shall be required to complete a directors’ and officers’ questionnaire to facilitate the Company’s preparation of any filings and reports with the SEC.

(b)

Executive shall not be entitled to any payments in addition to those otherwise set forth in this Agreement in respect of any Company Cooperation or Witness Cooperation, regardless of when provided. The Company will reimburse Executive for any reasonable, out-of-pocket travel, hotel and meal expenses incurred in connection with Executive’s performance of obligations pursuant to this Section 14 for which Executive has obtained prior approval (which shall not be unreasonably withheld) from the Company, and which shall be at levels consistent with Executive’s travel while employed as Executive Vice Chairman. The Company shall also reimburse Executive for reasonable legal fees incurred in connection with Executive’s

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cooperation if Executive reasonably believes that separate independent counsel is appropriate. Executive shall not be required to cooperate against his own legal interests.

(c)

Nothing in this Agreement or any other agreement by and between the parties is intended to or shall preclude or in any way limit or restrict Executive from providing accurate and truthful testimony or information to any governmental agency.

(d)

This Section 14 shall survive the termination of the Employment Term.

15.

Miscellaneous.

(a)

Successors and Assigns.

(1)

(2)

Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by Executive, Executive’s beneficiaries or legal representatives, except by will or by the laws of descent and distribution.

(3)

This Agreement shall inure to the benefit of and be enforceable by Executive’s legal personal representatives, and by Executive’s beneficiaries in the event of his death.

(b)

Notice. For the purposes of this Agreement, notices and all other communications provided for in the Agreement (including the Notice of Termination) shall be in writing and shall be deemed to have been duly given when personally delivered or sent by Certified mail, return receipt requested, postage prepaid, addressed to the respective addresses last given by each party to each other party; provided that all notices to the Company shall be directed to the attention of the General Counsel of the Company. All notices and communications shall be deemed to have been received on the date of delivery thereof or on the third business day after the mailing thereof, except that notice of change of address shall be effective only upon receipt.

(c)

Indemnity Agreement. The Company agrees to indemnify and hold Executive harmless to the fullest extent permitted by applicable law for actions taken as a director or officer of the Company, pursuant to the terms of the Indemnification Agreement previously entered into between the Company and Executive. In connection therewith, Executive shall be entitled to the protection of any insurance policies which the Company elects to maintain generally for the benefit of the Company’s directors and officers, against all costs, charges and expenses whatsoever incurred or sustained by Executive in connection with any action, suit or proceeding to which Executive may be made a party by reason of Executive’s being or having been a director, officer or employee of the Company. This provision shall survive any termination of the Employment Term.

(d)

Withholding. The Company shall be entitled to withhold the amount, if any, of all taxes of any applicable jurisdiction required to be withheld by an employer with respect to any amount paid to Executive hereunder. The Company, in its sole and absolute discretion, shall make all determinations as to whether it is obligated to withhold any taxes hereunder and the amount hereof.

(e)

Release of Claims. The termination benefits (other than the Accrued Compensation) described in Sections 8(b), 8(c), and 8(d) hereof (the “Total Payments”) shall be conditioned on Executive delivering to the Company, and failing to revoke, a signed release of claims reasonably acceptable to the Executive and the Company within fifty (50) days following Executive’s termination date, which release shall be a general release of claims against the Company and associated individuals and entities, including customary exceptions, and will not impose any new or extended non-competition, non-solicitation or similar covenants that have not previously agreed to by Executive in writing. Notwithstanding any provision of this Agreement to the contrary, in no event shall the timing of Executive’s execution of the release, directly or indirectly, result in Executive designating the calendar year of payment, and, to the extent required by Section 409A, if a payment that is subject to execution of the release could be made in more than one taxable year, payment shall be made in the later taxable year. Where applicable, references to Executive in this Section 15(e) shall refer to Executive’s representative or estate.

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(f)

Parachute Payments. To the extent consistent with applicable law, the payment of any amounts or the provision of any benefits under this Agreement or any other agreement including, without limitation, the Total Payments, will be reduced or adjusted to avoid triggering the excise tax (the “Excise Tax”) imposed by Section 4999 of the Code (the “Required Reduction”), if such adjustment would result in the provision of a greater total benefit, on a net after-tax basis (after taking into account any applicable federal, state and local income and employment taxes and the Excise Tax), to Executive. In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order: (i) by reducing any cash payments to be made to Executive (excluding any cash payment with respect to the acceleration of equity-based compensation); (ii) by canceling the acceleration of vesting of any outstanding equity-based compensation awards; and (iii) by reducing any other non-cash benefits provided to Executive. In the case of the reductions to be made pursuant to each of the above-mentioned clauses, the payment and/or benefit amounts to be reduced, and the acceleration of vesting to be cancelled, shall be reduced or cancelled in the inverse order of their originally scheduled dates of payment or vesting, as applicable, and shall be so reduced: (x) only to the extent that the payment and/or benefit otherwise to be paid, or the vesting of the award that otherwise would be accelerated, would be treated as a “parachute payment” within the meaning of Code Section 280G(b)(2)(A); and (y) only to the extent necessary to achieve the Required Reduction. All determinations made under this Section 15(f) (as well as with respect to any payments provided to any other “disqualified individual” of the Company within the meaning of Section 280G(c) of the Code) shall be made by a nationally recognized accounting firm as mutually agreed between the Company and Executive (the “Accounting Firm”) which shall provide detailed supporting calculations to Executive and the Company. All fees and expenses of the Accounting Firm shall be borne by the Company. All determinations by the Accounting Firm shall be binding on Executive and the Company absent manifest error. Notwithstanding the foregoing, if prior to a change in ownership or effective control of the Company (as described in Section 280G of the Code and the regulations and guidance promulgated thereunder, no stock of the Company is readily tradable on an established securities market and the Accounting Firm determines that the Excise Tax would be imposed upon the Total Payments (and any other payments) then, subject to Executive’s execution of a written agreement providing that Executive will waive any portion of the Total Payments (and any other payments) that would otherwise cause such payments to be subject to the Excise Tax, the Company agrees to use commercially reasonable efforts to submit to the Company’s shareholders for approval, in a manner that satisfies Section 280G(b)(5)(B) of the Code, Executive’s conditional right to receive the portion of the Total Payments (and other payments) otherwise subject to the waiver agreement.

(g)

Modification. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by any party which are not expressly set forth in this Agreement.

(h)

Arbitration. 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. Said arbitration will be conducted in accordance with the rules applicable to employment disputes of the Judicial Arbitration and Mediation Services (“JAMS”) and the law applicable to the claim. The parties shall have thirty (30) calendar days after notice of such arbitration has been given to attempt to agree on the selection of an arbitrator from JAMS. In the event the parties are unable to agree in such time, JAMS will provide a list of five (5) available arbitrators and an arbitrator will be selected from such five-member panel provided by JAMS by the parties alternately striking out one name of a potential arbitrator until only one name remains. The party entitled to strike an arbitrator first shall be selected by a toss of a coin. 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 in this Section 15(h) 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 11, 12 or 14 hereof. The parties agree that the seat of the arbitration shall be Boston, Massachusetts. The Company shall pay the cost of any arbitration brought pursuant to this

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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 10 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.

(i)

Effect of Other Law. Anything herein to the contrary notwithstanding, the terms of this Agreement shall be modified to the extent required to meet the provisions of the Sarbanes-Oxley Act of 2002, Section 409A, the Dodd-Frank Wall Street Reform and Consumer Protection Act or other law applicable to the employment arrangements between Executive and the Company. Any delay in providing benefits or payments or any failure to provide a benefit or payment shall not in and of itself constitute a breach of this Agreement as a result of applicable law; provided, however, that the Company shall provide economically equivalent payments or benefits to Executive to the extent permitted by law as soon as practicable after such benefits or payments are due. Any request or requirement that Executive repay compensation that is required under the first sentence of this Section 15(i), or pursuant to a Company policy that is applicable to other executive officers of the Company and that is designed to advance the legitimate corporate governance objectives of the Company, shall not in and of itself constitute a breach of this Agreement.

(j)

Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts applicable to contracts executed in and to be performed entirely within such State, without giving effect to the conflict of law principles thereof.

(k)

No Conflicts. As a condition to the effectiveness of this Agreement, Executive represents and warrants to the Company that Executive is not a party to or otherwise bound by any agreement or arrangement (including, without limitation, any license, covenant, or commitment of any nature), or subject to any judgment, decree, or order of any court or administrative agency, that would conflict with or will be in conflict with or in any way preclude, limit or inhibit Executive’s ability to execute this Agreement or to carry out Executive’s duties and responsibilities hereunder. In the event that the Company reasonably determines that Executive’s duties hereunder may conflict with an agreement or arrangement to which Executive is bound, the Company and Executive shall engage in good faith discussions regarding such conflict and, if such conflict exists, Executive shall be required to cease engaging in any such activities, duties or responsibilities (including providing supervisory services over certain subsets of the Company’s business operations) and the Company will take steps to restrict Executive’s access to, and participation in, any such activities, until the Company determines that such conflict ceases to exist. Any actions taken by the Company under this Section 15(k) to restrict or limit Executive’s access to information or provision of services shall not constitute Good Reason for purposes of Section 6(e) hereof.

(l)

Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

16.

17.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written, to be effective as of the Effective Date.

    AMERICAN WELL CORPORATION

   

    By: /s/ Bradford F. Gay

   

    Name: Bradford F. Gay

   

    Title:  Senior Vice President and General Counsel

   

    EXECUTIVE

   

    By: /s/ Roy Schoenberg

   

    Name: Roy Schoenberg

   

Signature Page to Roy Schoenberg Amended & Restated Employment Agreement

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Exhibit 99.1

Amwell Co-Founder Roy Schoenberg becomes Executive Vice Chairman of the Board

BOSTON — June 13, 2024 — Amwell® (NYSE: AMWL), a leader in digital care, today announced that co- founder and visionary healthcare technology leader Roy Schoenberg, M.D., M.P.H., is transitioning from his role as president and co-CEO to become Executive Vice Chairman of Amwell’s Board of Directors. Ido Schoenberg, M.D., will assume the role of sole Chief Executive Officer of Amwell.

Since co-founding Amwell in 2006, Roy Schoenberg has been a driving force behind the nation’s embrace of digital healthcare. His vision of democratizing the availability and distribution of healthcare, using modern technology, laid the foundation for how patients and clinicians experience digital care.

His relentless pursuit to advance our view of the possible helped the industry welcome new efficiencies, embrace care automation, healthcare AI and related technologies, and further elevate how and where patients can be cared for. When the COVID-19 pandemic disrupted in-person care, he worked tirelessly with payers, providers and regulators to ensure the industry could keep its obligation to its patients, using technology. While doing so, Roy Schoenberg helped grow the Amwell platform to reach over 100,000 active clinicians and many millions of patients annually across the globe. As the world recovered from the pandemic, he began to architect a next-generation platform – the Amwell Converge™ platform – to support a fast-evolving world of expectations where care is rendered as a balance of in-person and digital experiences. Bringing healthcare to patients has been Roy Schoenberg’s mission and continues to be Amwell’s.

“The time is now to take the next step in our mission. Our unique opportunity to realize the immense value in new Amwell technology – while achieving critical operational and clinical goals – is both timely and exciting. I am confident in our talented leadership team and will continue to support them in our journey to digitally reimagine healthcare,” said Roy Schoenberg, newly appointed Amwell Executive Vice Chairman.

“This transition represents a natural evolution for our company as we shift from a period of intense R&D investment to an operational focus aimed at achieving greater efficiencies, optimizing cash flow and delivering profitable growth while maintaining our dedication to enabling our clients’ aspirations,” said Ido Schoenberg. “Roy’s vision, leadership and unwavering dedication has resulted in the creation of a powerful, innovative enterprise technology that has helped establish Amwell as a global provider of world-class software that enables hybrid care delivery.”

About Amwell

Amwell is a leading hybrid care, delivery enablement platform in the United States and globally, connecting and enabling providers, payers, patients, and innovators to deliver greater access to more affordable, higher quality care. Amwell believes that hybrid care delivery will transform healthcare. We offer a single, comprehensive platform to support all digital health needs from urgent to acute and post-acute care, as well as chronic care management and healthy living. With nearly two decades of experience, Amwell powers the digital care of more than 50 health plans, which collectively represent more than 100 million

covered lives, and many of the nation’s largest health systems. For more information, please visit https://business.amwell.com/.

Media:

Angela Vogen

Press@amwell.com

Investor:

Sue Dooley

Sue.Dooley@amwell.com

Notice of Ownership

All materials contained herein are the property of American Well Corporation and are copyrighted under United States law and applicable international copyright laws and treaty provisions. The materials contained herein are not work product or "work for hire" on behalf of any third party. The materials contained herein constitute the confidential information of American Well Corporation, except for specific data elements provided by third parties, which are the confidential information of such third parties. The content contained herein results from the application of American Well proprietary processes, analytical frameworks, algorithms, business methods, solution construction aids and templates, all of which are and remain the property of American Well Corporation.

Trademark Notice

All of the trademarks, service marks and logos displayed on these materials (the "Trademark(s)") are registered and unregistered trademarks of American Well Corporation or third parties who have licensed their Trademarks to American Well Corporation. Except as expressly stated in these terms and conditions, you may not reproduce, display or otherwise use any Trademark without first obtaining American Well Corporation's written permission.

Document And Entity Information	Jun. 13, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jun. 13, 2024
Entity Registrant Name	American Well Corporation
Entity Central Index Key	0001393584
Entity Emerging Growth Company	false
Entity File Number	001-39515
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5009396
Entity Address, Address Line One	75 State Street
Entity Address, Address Line Two	26th Floor
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02109
City Area Code	617
Local Phone Number	204-3500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A Common Stock, $0.01 Par Value
Trading Symbol	AMWL
Security Exchange Name	NYSE

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