<SEC-DOCUMENT>0001387131-19-008576.txt : 20191113
<SEC-HEADER>0001387131-19-008576.hdr.sgml : 20191113
<ACCEPTANCE-DATETIME>20191113090141
ACCESSION NUMBER:		0001387131-19-008576
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20191112
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191113
DATE AS OF CHANGE:		20191113

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CPI AEROSTRUCTURES INC
		CENTRAL INDEX KEY:			0000889348
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT PART & AUXILIARY EQUIPMENT, NEC [3728]
		IRS NUMBER:				112520310
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11398
		FILM NUMBER:		191211842

	BUSINESS ADDRESS:	
		STREET 1:		200A EXECUTIVE DR
		CITY:			EDGEWOOD
		STATE:			NY
		ZIP:			11717
		BUSINESS PHONE:		5165865200

	MAIL ADDRESS:	
		STREET 1:		91 HEARTLAND BLVD
		CITY:			EDGEWOOD
		STATE:			NY
		ZIP:			11717
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>cvu-8k_111219.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><font style="font-size: 14pt;"><b>UNITED STATES </b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b><font style="font-size: 14pt;">SECURITIES AND EXCHANGE COMMISSION</font> <br><font style="font-size: 12pt;">WASHINGTON, D.C. 20549</font></b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><font style="font-size: 18pt;"><b>FORM 8-K</b></font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><font style="font-size: 12pt;"><b>CURRENT REPORT <br>PURSUANT TO SECTION 13 OR 15(d) OF THE <br>SECURITIES EXCHANGE ACT OF 1934</b></font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;">Date of Report (Date of earliest event reported): November 12, 2019</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><font style="font-size: 24pt;"><b>CPI AEROSTRUCTURES, INC.</b></font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b>001-11398</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;">(State or Other Jurisdiction<br>of Incorporation)</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;">(IRS Employer<br>Identification No.)</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b>91 Heartland Boulevard, Edgewood, New York</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b>11717</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;">(Address of Principal Executive Offices)</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;">Registrant&#x2019;s telephone number, including area code: (631) 586-5200</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">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 (<u>see</u> General Instruction A.2. below):</p>
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<p style="font: 10pt Times New Roman, Times, serif; margin: 0pt; text-indent: 0pt; padding: 0pt;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>
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<p style="font: 10pt Times New Roman, Times, serif; margin: 0pt; text-indent: 0pt; padding: 0pt;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>
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<p style="font: 10pt Times New Roman, Times, serif; margin: 0pt; text-indent: 0pt; padding: 0pt;">Pr<font style="display: none;"> &#8594; </font>e-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</p>
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<p style="font: 10pt Times New Roman, Times, serif; margin: 0pt; text-indent: 0pt; padding: 0pt;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 36.0pt; margin: 0pt;">Emerging growth company&nbsp;&#9744;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt;">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.&nbsp;&#9744;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: -.75pt; margin: 0pt;">Securities registered pursuant to Section 12(b) of the Act:</p>
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<td style="padding: 2pt 5.4pt; width: 37%; vertical-align: bottom; border-bottom: Black 1pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt;"><b>Title of each class</b></p>
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<td style="padding: 2pt 5.4pt; width: 38%; vertical-align: bottom; border-bottom: Black 1pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-indent: -1.5pt; margin: 0pt;"><b>Name of each exchange on which registered</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt;">Common stock, $0.001 par value per share</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">CVU</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 35.85pt; margin: 0pt;">NYSE American</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-indent: -72.0pt; margin: 0pt 0pt 0pt 72.0pt;"><b>Item 5.02 </b></p>
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<p style="font: 10pt Times New Roman, Times, serif; text-indent: 0pt; margin: 0pt;"><b><font face="Times New Roman, Times, serif">Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. </font></b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">On November 12, 2019, Dan Azmon was appointed as Chief Financial Officer and Secretary of CPI Aerostructures, Inc. (the &#8220;Company&#8221;), effective November 18, 2019. Mr. Azmon will be paid an annual base salary of $300,000 and a one-time signing bonus in the amount of $30,000. Additionally, Mr. Azmon will receive a one-time equity award of 10,000 restricted shares of the Company&#x2019;s common stock (&#8220;Shares&#8221;), which Shares will vest on November 18, 2022 subject to Mr. Azmon&#x2019;s continuing employment with the Company. The Shares will be issued pursuant to the Company&#x2019;s 2016 Long Term Incentive Plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">In addition to serving as Chief Financial Officer and Secretary of the Company, Mr. Azmon will serve as Chief Financial Officer and Secretary of the Company&#x2019;s wholly-owned subsidiaries, Welding Metallurgy, Inc. and Compac Development Corporation. Mr. Azmon replaces Vincent Palazzolo, who left the Company and all offices previously held by him on November 12, 2019. Mr. Palazzolo will receive separation benefits as set forth in the Severance and Change in Control Agreement entered into on July 7, 2016, which is attached as Exhibit 10.2 to the Company&#x2019;s Current Report on Form 8-K filed on July 7, 2016.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">In connection with his appointment as Chief Financial Officer, Mr. Azmon will enter into a Severance and Change in Control Agreement with the Company. The Severance and Change in Control Agreement provides for varying types and amounts of payments and additional benefits upon termination of employment, depending on the circumstances of the termination:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;"><i>Termination without cause</i>.&nbsp;&nbsp;If Mr. Azmon&#x2019;s employment is terminated by the Company other than for cause (as defined in the Severance and Change of Control Agreement), then he will be entitled to (i) continued salary for 12 months, (ii) any earned cash bonus not yet paid for the preceding fiscal year, and (iii) a pro-rated cash bonus calculated using the prior year&#x2019;s cash bonus amount. A non-competition provision will apply for 12 months as long as severance payments are being paid. Any unvested restricted stock will be forfeited and any unexercised options will expire.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;"><i>Voluntary Termination or Termination for Cause,.&nbsp;</i>If Mr. Azmon voluntarily terminates his employment, or if the Company terminates his employment for cause, he will not be entitled to any severance payments and will not be bound by a non-compete provision, however he will still be bound by confidentially and non-disparagement obligations. Any unvested restricted stock will be forfeited and any unexercised options will expire.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;"><i>Termination for disability.&nbsp;</i>If Mr. Azmon&#x2019;s employment is terminated because of a disability (as defined in the Severance and Change in Control Agreement), then he will receive severance as if employment had been terminated by the Company without cause.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;"><i>Termination following a change in control.&nbsp;</i>If the employment of Mr. Azmon is terminated within 18 months following a change in control (as defined in the Severance and Change in Control Agreement) either (a) by the Company other than for cause or disability or (b) by Mr. Azmon for good reason (as defined in the Severance and Change in Control Agreement), he will be entitled to (i) his base salary earned through the date of termination, (ii) any earned cash bonus not yet paid for the preceding fiscal year, and (iii) a pro-rated portion of the his annual cash bonus for the portion of the year he worked, assuming all applicable targets had been met. In addition, he will be entitled to a change in control payment in an amount equal to one and one-half times his base salary for the prior full fiscal year. Upon any change in control, all outstanding stock options and restricted stock will vest immediately. Health insurance and other fringe benefits will continue for a period of six months after termination. A non-competition provision will apply for six months.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">The foregoing description of the Severance and Change in Control Agreement is qualified in its entirety by reference to the full text of the agreement, a form of which is attached hereto as Exhibit 10.1.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">Before joining the Company, Mr. Azmon served in a variety of financial roles at L3 Technologies, Inc. (&#8220;L3&#8221;) beginning in 2000. From 2008 until the merger between L3 and Harris Corporation in July 2019, Mr. Azmon served as vice president, controller, and principal accounting officer of L3. Prior to joining L-3, Mr. Azmon held a number of financial management and financial reporting positions at ASARCO Incorporated and Salomon Brothers, Inc., and was a manager in the audit practice at Coopers &amp; Lybrand LLP. He holds a Master of Business Administration degree from St. John&#x2019;s University in accounting and a Bachelor of Business Administration degree in finance from Hofstra University. Mr. Azmon is a certified public accountant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">On November 13, 2019 the Company issued a press release announcing Mr. Azmon&#x2019;s appointment as Chief Financial Officer, which is included as Exhibit 99.1 hereto.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><b>Item 9.01</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><b>Financial Statements and Exhibits.</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><b>&nbsp;</b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-decoration: none; margin: 0pt;"><font style="text-decoration: none;">&nbsp;</font></p>
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<td style="padding: 0pt;" valign="top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><b><u>Exhibit</u></b></p>
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<td style="padding: 0pt;" valign="top"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><b><u>Description</u></b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><a href="ex10-1.htm">10.1</a></p>
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<td style="padding: 0pt;" valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><a href="ex10-1.htm">Form of Severance and Change in Control Agreement between the Company and Dan Azmon.</a></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><a href="ex99-1.htm">99.1</a></p>
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<td style="padding: 0pt;" valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font face="Times New Roman, Times, serif"><a href="ex99-1.htm">Press Release dated November 13, 2019.</a></font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b>SIGNATURE</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;">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.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">&nbsp;</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">Dated:&nbsp;&nbsp;November 13, 2019</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">CPI AEROSTRUCTURES, INC.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">&nbsp;</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">&nbsp;</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">By:</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">/s/ Douglas McCrosson</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">&nbsp;</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">Douglas McCrosson</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">Chief Executive Officer</font></p>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10-1.htm
<DESCRIPTION>FORM OF SEVERANCE AND CHANGE IN CONTROL AGREEMENT
<TEXT>
<html><head><title></title></head><body>
<div style="margin-top: 0pt; margin-bottom: 0pt;" align="left"><div style="width: 100%; font-size: 1pt; border-top: 2px solid #000000;">&nbsp;</div>
</div>
<p style="margin: 0pt 0pt 6pt; text-align: left; font: 9pt Arial, Helvetica, sans-serif"><font style="font-family: Times New Roman, Times, serif; font-size: 10pt"><a href="cvu-8k_111219.htm">CPI AEROSTRUCTURES, INC. 8-K</a></font></p>

<p style="margin: 0pt 0pt 6pt; text-align: right; font: 9pt Arial, Helvetica, sans-serif"><font style="font: 10pt Times New Roman, Times, serif"><b></b></font></p>

<p style="margin: 0pt 0pt 6pt; text-align: right; font: 9pt Arial, Helvetica, sans-serif"><font style="font: 10pt Times New Roman, Times, serif"><b>Exhibit 10.1</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b>CPI AEROSTRUCTURES, INC.</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b>Severance and Change in Control Agreement</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;">This Severance and Change in Control Agreement (&#8220;Agreement&#8221;) made and entered into as of November 18, 2019 (the &#8220;Effective Date&#8221;), by and between CPI Aerostructures, Inc., a New York corporation (&#8220;Company&#8221;), and Dan Azmon (&#8220;Employee&#8221;).&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin: 0pt;"><b><u><b>W</b></u> <u>I T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;">WHEREAS, the Company currently employs Employee as an employee at-will in the capacity of Chief Financial Officer; and&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;">WHEREAS, the Company seeks to attract and retain talent and to assure the present and future continuity, objectivity and dedication of management in the foreseeable future and in the event of any Change in Control.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 36.0pt; margin: 0pt;">NOW, THEREFORE, in consideration of the mutual agreements herein set forth and other good and valuable consideration, the parties hereto agree as follows:&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Employment</b></u></b>.&nbsp; Employee will continue to be employed<b> </b>with the Company as an at-will employee subject to the terms and conditions hereinafter set forth.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">2.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Duties</b></u></b>.&nbsp; During Employee&#x2019;s employment with the Company, Employee shall:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">serve the Company and do and perform assigned duties and responsibilities in the ordinary course of Employee&#x2019;s employment and the business of the Company (within such limits as the Company may from time to time prescribe), professionally, faithfully and diligently.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">devote Employee&#x2019;s full business time, energy and skill to the business of the Company and Employee&#x2019;s assigned duties and responsibilities, and to the promotion of the best interests of the Company; provided that Employee shall not (to the extent not inconsistent with <u>Section&nbsp;6</u> below) be prevented from (i)&nbsp;engaging in charitable, religious, civic or other non-profit community activities, or (ii)&nbsp;investing his personal assets in such form or manner as will not require any substantial services on Employee&#x2019;s part in the operation or affairs of the business in which such investments are made, in each case, only to the extent&nbsp; that such activity does not detract from or interfere or cause a conflict of interest with performance of Employee&#x2019;s duties.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(c)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">observe all policies and procedures of the Company in effect from time to time applicable to employees of the Company including, without limitation, policies with respect to employee confidentiality, loyalty and prohibited conflicts of interest.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Benefits</b></u></b>.&nbsp; Employee shall be entitled to participate, according to the eligibility provisions of each, in such welfare plans (including but not limited to medical, dental, life, accident and disability insurance programs), vacation, retirement plans and other fringe benefits as may be in effect from time to time and available to other employees of the Company during Employee&#x2019;s employment with the Company. Employee shall also be entitled to participate in such additional fringe benefits as may be authorized from time to time by the Chief Executive Officer and/or the Board of Directors of the Company.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Confidential Information, Assignment of Inventions</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee acknowledges that the trade secrets, confidential information, secret processes and know-how developed and acquired by the Company are among its most valuable assets and that the value of such information may be destroyed by unauthorized disclosure.&nbsp;All such trade secrets, confidential information, secret processes and know-how imparted to or learned by Employee in the course of his employment with respect to the business of the Company (whether acquired before or after the date hereof) will be deemed to be confidential and will not be used or disclosed by Employee, except to the extent necessary to perform Employee&#x2019;s duties and, in no event, disclosed to anyone outside the employ of the Company and its authorized consultants and advisors.&nbsp; If Employee ceases to be employed by the Company for any reason, Employee shall not take any electronically stored data, documents or other papers containing or reflecting trade secrets, confidential information, secret processes, know-how, or computer software programs from the Company.&nbsp; Employee acknowledges that Employee&#x2019;s employment with the Company places Employee in a position of utmost confidence and that Employee will have access to confidential information concerning the operation of the business of the Company, including, but not limited to, manufacturing methods, developments, secret processes, know-how, computer software programs, costs, prices and pricing methods, sources of supply and customer names and relations.&nbsp;All such information is in the nature of a trade secret and is the sole and exclusive property of the Company and shall be deemed confidential information for the purposes of this <u>Section 4</u>.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee hereby assigns to the Company all rights that Employee may have as author, designer, inventor or otherwise as creator of any written or graphic material, design, invention, improvement, or any other idea or thing whatsoever that Employee may write, draw, design, conceive, perfect, or reduce to practice during his employment with the Company, whether done during or outside of normal work hours, and whether done alone or in conjunction with others (&#8220;Intellectual Property&#8221;), provided, however, that Employee reserves all rights in anything done or developed entirely by Employee on Employee&#x2019;s own personal time and without the use of any Company equipment, supplies, facilities or information, or the participation of any other Company employee, unless it relates to the Company&#x2019;s business or reasonably anticipated business, or grows out of any work performed by Employee for the Company. Employee will promptly disclose all such Intellectual Property developed by Employee to the Company, and fully cooperate at the Company&#x2019;s request and expense in any efforts by the Company or its assignees to secure protection for such Intellectual Property by way of domestic or foreign patent, copyright, trademark or service mark registration or otherwise, including executing specific assignments or such other documents or taking such further action as may be considered necessary to vest title in the Company or its assignees and obtain patents or copyrights in any and all countries.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">5.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Non-disparagement</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee agrees and covenants that he shall not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses, or any of its employees or officers, and existing and prospective customers, suppliers, investors and other associated third parties, now or in the future. The Company agrees and covenants that its directors and/or officers shall not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning Employee, now or in the future.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt 0pt 0pt 72.0pt;"><font style="color: black;">This Section does not, in any way, restrict or impede Employee from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order. Employee shall promptly provide written notice of any such order to the Chairman of the Company&#x2019;s Board of Directors.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Non-Compete</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee agrees that during Employee&#x2019;s employment with the Company and for (x) 12 months thereafter if Employee&#x2019;s employment with the Company is terminated prior to a Change in Control (as defined in Section 10(a) below) or after the Change in Control Period (as defined in Section 9(a) below) or (y) six months thereafter if Employee&#x2019;s employment with the Company is terminated during the Change in Control Period (so long as the Company makes severance payments to Employee pursuant to <u>Section 7(a)</u>&nbsp;below or makes the payments to Employee pursuant to <u>Section 9(a)</u> below, as appropriate), without the prior written consent of the Company, Employee shall not, within the United States: (i) be employed by, or render any services to, (A) any person, firm or corporation engaged in the contract production or repair of aircraft parts or any other business (&#8220;Competitive Business&#8221;), which is directly in competition with any &#8220;material&#8221; business conducted by the Company or any of its subsidiaries at the time of the termination of Employee&#x2019;s employment with the Company (as used herein &#8220;material&#8221; means a business which generated at least 10% of the Company&#x2019;s consolidated revenues for the last full fiscal year for which the Company&#x2019;s audited financial statements are available) or (B) any of the Company&#x2019;s customers or other persons with whom the Company has a contractual relationship; (ii) engage in any Competitive Business for his or its own account; (iii) be associated with or interested in any Competitive Business as an individual, partner, shareholder, creditor, director, officer, principal, agent, employee, trustee, consultant, advisor or in any other relationship or capacity; (iv) employ or retain, or have or cause any other person or entity to employ or retain, any person who was employed or retained by the Company while Employee was employed by the Company; or (v) solicit, interfere with, or endeavor to entice away from the Company, for the benefit of a Competitive Business, any of its customers or other persons with whom the Company has a contractual relationship.&nbsp; Notwithstanding the foregoing, nothing in this Agreement shall preclude Employee from investing his personal assets in any manner he chooses, provided, however, that Employee may not, during the period referred to in this <u>Section 6(a)</u>, own more than 4.9% of the equity securities of any Competitive Business.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee acknowledges and agrees that the Company would be irreparably harmed by violations of <u>Section&nbsp;4</u> or <u>Section&nbsp;6(a)</u> above, and in recognition thereof, the Company shall be entitled to an injunction or other decree of specific performance with respect to any violation thereof (without any bond or other security being required) in addition to other available legal and equitable remedies.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">7.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Severance</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">The Company will pay Employee, upon termination of Employee&#x2019;s employment by the Company prior to a Change in Control (as defined in <u>Section 10(a)</u> below) and following the Change in Control Period (as defined in <u>Section 9(a)</u> below) for any reason other than Cause (as defined in <u>Section 10(d)</u> below), or at any time due to Disability (as defined in <u>Section 10(c)</u> below), (i) all base salary earned through the date of termination; (ii) any annual cash bonus earned by Employee for the fiscal year most recently ended prior to the date of termination to the extent unpaid on the date of termination; (iii) continuation of Employee&#x2019;s base salary for 12 months (the &#8220;Severance Period&#8221;), paid pursuant to the Company&#x2019;s normal payroll practices and subject to applicable withholding; and, further, Employee will be paid at the time annual cash bonuses are paid to other officers of similar title or at such time as the Severance Period is complete, whichever is later,&nbsp;a prorated annual bonus equal to the product of (x) the annual bonus, if any, that Employee earned for the entire fiscal year prior to the fiscal year in which Employee&#x2019;s employment with the Company terminates; and (y) a fraction, the numerator of which is the number of days Employee was employed by the Company during the fiscal year in which Employee&#x2019;s employment with the Company terminates and the denominator of which is the number of days in such year, paid at the time such bonus is paid to the Company&#x2019;s other employees of similar title to Employee; provided, however, that all such payment obligations shall terminate or lapse immediately upon any breach by Employee of <u>Section</u>&nbsp;<u>4</u>, <u>5</u> or <u>6(a)</u> of this Agreement or if Employee shall commence any action or proceeding in any court or before any regulatory agency arising out of or in connection with termination of Employee&#x2019;s employment.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">If Employee receives severance pursuant to <u>Section 7(a)</u> and he timely and properly elects continuation health care coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (&#8220;COBRA&#8221;) under the Company&#x2019;s current group health plan, Employee and his/her dependents shall be eligible to continue his coverage, pursuant to COBRA, and shall be responsible for the entire COBRA premium for the remainder of the applicable COBRA continuation period.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(c)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">If Employee dies during the Severance Period, any severance payments payable pursuant to <u>Section 7(a)</u> will be paid to the appointed administrator, executor or personal representative of Employee&#x2019;s estate.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(d)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">If Employee&#x2019;s employment with the Company is terminated for Disability, then the Company&#x2019;s obligation to pay severance pursuant to <u>Section 7(a)</u> shall be reduced by payments Employee receives under the Company&#x2019;s short-term and/or long-term disability plans, if any.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:36pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">8.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Termination of Employment</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Upon and after termination of Employee&#x2019;s employment with the Company howsoever arising, Employee shall, upon request by the Company:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(i)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">immediately return to the Company all correspondence, documents, business calendars/diaries, or other property belonging to the Company which is in Employee&#x2019;s possession;&nbsp;</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">immediately resign from any office Employee holds with the Company; and&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iii)</font></p>
</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">cooperate fully and in good faith with the Company in the resolution of all matters Employee worked on or was involved in during Employee&#x2019;s employment with the Company.&nbsp; Employee&#x2019;s cooperation will include reasonable consultation by telephone.&nbsp; Further, in connection therewith, Employee will, at the Company&#x2019;s request upon reasonable advance notice and subject to Employee&#x2019;s availability, make himself available to the Company in person at the Company&#x2019;s premises, for testimony in court, or elsewhere; provided, however, that in such event, the Company shall reimburse all of Employee&#x2019;s reasonable expenses incurred by Employee in connection therewith following submission to the Company of receipts or other evidence of such expense, provided that expenses in excess of $250, in the aggregate, must be approved in writing (which may be by e-mail) by the Company.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">9.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Change in Control</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">In the event that both&nbsp;a Change in Control of the Company occurs and at any time during the 18-month period following the date of the Change in Control (the &#8220;Change in Control Period&#8221;) the Company terminates Employee&#x2019;s employment with the Company for any reason other than for Cause or Disability, or Employee terminates Employee&#x2019;s employment with the Company for Good Reason, in either case, by written notice to the other party (including the particulars thereof), and having given the other party the opportunity to be heard with respect thereto, then:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(i)</font></p>
</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">The Company shall, within 30 days following such termination of employment, pay to Employee, in a lump sum, a cash payment in an amount equal to the sum of (A)&nbsp;all base salary earned by Employee through the date of termination, (B)&nbsp;any annual cash bonus earned by Employee for the fiscal year of the Company most recently ended prior to the date of termination to the extent unpaid on the date of termination, (C)&nbsp;a pro rata portion of the annual cash bonus together with the fair market value of any stock grant in lieu of annual cash bonus, if any, equal to the product of (x) the annual cash bonus, together with the value of any restricted stock grant in lieu of annual cash bonus,<b> </b>if any, that Employee would have earned for the entire fiscal year in which Employee&#x2019;s employment with the Company terminates as if all performance targets have been fully met; and (y) a fraction, the numerator of which is the number of days Employee was employed by the Company during the fiscal year in which Employee&#x2019;s employment with the Company terminates and the denominator of which is the number of days in such year, and (D)&nbsp;any and all other benefits and amounts earned by Employee prior to the date of termination to the extent unpaid, all subject to applicable withholdings.</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ii)</font></p>
</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">The Company shall pay to Employee, a cash payment in an amount equal to one and one-half times Employee&#x2019;s total base salary for the fiscal year of the Company&#x2019;s most recently ended prior to the date of termination (the &#8220;Change in Control Payment&#8221;).&nbsp; The Change in Control Payment will be paid in two installments as follows: (A) the first installment will be paid on the date Employee&#x2019;s employment with the Company is terminated, in an amount equal to the lesser of: (x) the sum of Employee&#x2019;s total compensation (including salary and bonus) for the calendar year preceding the year in which Employee&#x2019;s employment with the Company is terminated (adjusted for any increase in base salary during that year that was expected to continue indefinitely if Employee had not terminated employment), or (y) the maximum amount that may be taken into account under a qualified plan under Internal Revenue Code section 401(a)(17) for the year in which Employee&#x2019;s employment with the Company is terminated; and (B) the second installment will be paid on the first business day following the day that is six months after the date Employee&#x2019;s employment with the Company is terminated, in an amount equal to the balance of the Change in Control Payment.</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iii)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee and Employee&#x2019;s dependents shall continue to be covered by, and receive employee welfare and fringe benefits (including but not limited to medical, dental, life, accident and disability insurance available to officers of the Company and additional retirement and other fringe benefits approved by the President and CEO, and/or the Board of Directors of the Company) in accordance with the terms of the Company&#x2019;s benefit plans, for 6 months following the date Employee&#x2019;s employment with the Company is terminated, and the premiums/payments of such welfare and fringe benefits will be paid at no less than the levels Employee and Employee&#x2019;s dependents were receiving immediately prior to the Change in Control.&nbsp; Employee&#x2019;s dependents shall be entitled to continued benefit coverage pursuant to the preceding sentence for the 6 months following the date Employee&#x2019;s employment with the Company is terminated in the event of Employee&#x2019;s death.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:36pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">In the event that a Change in Control occurs, all options, or other derivative securities granted to Employee by the Company will immediately vest or become immediately exercisable and remain exercisable until the award&#x2019;s original expiration date, if any, whether or not Employee&#x2019;s employment continues, and all restrictions on restricted stock or restricted stock units granted to Employee, if any, will immediately lapse.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">10.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Definitions</b></u></b><i>. </i>For purposes of this Agreement:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">&#8220;Change in Control&#8221; shall occur if or upon the occurrence of:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(i)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">any person (as such term is used in Section&nbsp;13(d)&nbsp;of the Securities Exchange Act of 1934, as amended (&#8220;Exchange Act&#8221;), has acquired (other than directly from the Company) beneficial ownership (as that term is defined in Rule&nbsp;13d-3 under the Exchange Act), of more than 50% of the outstanding capital stock of the Company entitled to vote for the election of directors; or&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">effective time of (A)&nbsp;a merger or consolidation or other business combination of the Company with one or more other corporations as a result of which the holders of the outstanding voting stock of the Company immediately prior to such business combination hold less than 50% of the voting stock of the surviving or resulting corporation, or (B)&nbsp;a transfer of substantially all of the assets of the Company other than to an entity of which the Company owns at least 80% of the voting stock; or&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">the individuals who, as of the Effective Date of this Agreement, are members of the Board (the &#8220;Incumbent Board&#8221;), cease for any reason to constitute at least two-thirds of the Incumbent Board; provided, however, that if either the election of any new director or the nomination for election of any new director was approved by a vote of more than two-thirds of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened &#8220;Election Contest&#8221; (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a &#8220;Proxy Contest&#8221;), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">&#8220;Good Reason&#8221; means:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(i)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">A material adverse change in the nature of Employee&#x2019;s title, duties or responsibilities with the Company that represents a demotion from his title, duties or responsibilities as in effect immediately prior to such Change in Control, or a material reduction in Employee&#x2019;s compensation (including benefits), occurring at any time during the Change of Control Period; <i>provided, however</i>, that in the event of a Change in Control, no demotion shall be deemed to have occurred as long as Employee shall remain as the Company&#x2019;s principal business development executive, notwithstanding title;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">A failure by the Company to make any payment to Employee when due, unless the payment is not material and is being contested by the Company, in good faith;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">A liquidation, bankruptcy or receivership of the Company; or&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iv)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">A relocation of Employee&#x2019;s primary place of employment of at least 50 miles without Employee&#x2019;s consent.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:36pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(c)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">&#8220;Disability&#8221; means a physical or mental condition which has prevented Employee from substantially performing Employee&#x2019;s assigned duties for a period of 180 consecutive days and which is expected to continue to render Employee unable to substantially perform Employee&#x2019;s duties on a full-time basis.&nbsp; The Company will make reasonable accommodation for any handicap of Employee as may be required by applicable law.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(d)</font></p>
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<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">&#8220;Cause&#8221; means:&nbsp; If the Company, in its sole and absolute discretion, determines that any of the following events occur:</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(i)</font></p>
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<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s refusal or willful failure to substantially perform his duties for the Company;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s dishonesty, willful misconduct, misappropriation, breach of fiduciary duty or fraud with regard to the Company or its affiliates;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iii)</font></p>
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<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s conviction of, or plea of nolo contendere with respect to, a felony (other than a traffic violation) or any crime involving, in the sole discretion of the Company, moral turpitude;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iv)</font></p>
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<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s improper disclosure of proprietary information or trade secrets of the Company or its business;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(v)</font></p>
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<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s falsification of any records or documents of the Company;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(vi)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s intentional or gross misconduct that injures the business or reputation of the Company;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(vii)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s failure to comply with established policies of the company, including those set forth in the Company&#x2019;s employee handbook;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(viii)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s illegal possession or use of a drug or narcotic on Company property; or&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ix)</font></p>
</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s failure to improve his work performance to an acceptable level after Employee was previously warned in writing by the Company about poor performance.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:36pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:36pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(e)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Without limiting the generality of <u>Section 10(d)</u>, the following shall not constitute Cause for the termination of employment of Employee or the modification or diminution of any of Employee&#x2019;s authority hereunder:&nbsp;&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<tr>
<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(i)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">any personal or policy disagreement between Employee and the Company or any member of the Company&#x2019;s Board of Directors; or&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<tr>
<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(ii)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">any action taken by Employee in connection with Employee&#x2019;s duties hereunder, or any failure to act, if Employee acted or failed to act in good faith and in a manner Employee reasonably believed to be in and not opposed to the best interest of the Company and Employee had no reasonable cause to believe Employee&#x2019;s conduct was unlawful; or</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<tr>
<td valign="top" style="width:72pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
</td>
<td valign="top" style="width:22pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(iii)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">termination of Employee&#x2019;s employment for overall unsatisfactory performance (including, but not limited to, failure to meet financial goals).</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(f)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Termination for Cause shall be limited to a good faith finding by resolution of the Compensation Committee of the Board, setting forth the particulars thereof.&nbsp; Any such action shall be taken at a regular or specially called meeting of the Compensation Committee of the Board, after a minimum 10 days&#x2019; notice thereof to Employee, with termination of Employee&#x2019;s employment with the Company for Cause listed as an agenda item.&nbsp; Employee will be given a reasonable opportunity to be heard at such meeting with counsel present if Employee desires.&nbsp; Any such resolution shall be final and binding.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt 0pt 0pt 72.0pt;">Upon termination of employment by the Company for Cause, no further compensation or benefits shall accrue or be payable to Employee by the Company, except for any compensation, bonus or other benefits which have accrued to Employee prior to the date of any such termination.&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt 0pt 0pt 72.0pt;">Nothing herein shall be construed to prevent the Company from terminating Employee&#x2019;s employment at any time for any reason or for no reason.&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">11.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Changes in Business</b></u></b>.&nbsp; The Company, acting through its Board of Directors, will at all times have complete control over the Company&#x2019;s business and retirement and other employee health and welfare benefit plans (&#8220;Plans&#8221;).&nbsp; Without limiting the generality of the foregoing, the Company may at any time or times change or discontinue any or all of its present or future operations or Plans (subject to their terms), may close or move any one or more of its divisions or offices, may undertake any new servicing or sales operations, may sell any one or more of its divisions or offices to any company not controlled, directly or indirectly, by the Company or may take any and all other steps which its Board of Directors, in its exclusive judgment, shall deem desirable, and Employee shall have no claim or recourse against the Company, its officers, directors or employees by reason of such action except for enforcement of the provisions of <u>Sections</u> <u>5</u> and <u>7</u> of this Agreement.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">12.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Severance Payment as Sole Obligation</b></u></b>.&nbsp; Except as expressly provided in <u>Sections</u> <u>7</u> and <u>9</u> above, no further compensation, payments, liabilities or benefits shall accrue or be payable to Employee upon or as a result of termination of Employee&#x2019;s employment for any reason whatsoever except for any compensation, bonus or other benefits which accrued to Employee prior to the date of employment termination.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 36.0pt;">The amounts paid to Employee under <u>Sections</u>&nbsp;<u>7</u> and <u>9</u> of this Agreement shall be considered severance pay in consideration of Employee agreeing to the obligations of confidentiality, non-disparagement and non-competition set forth in <u>Sections</u> <u>4</u>, <u>5</u> and <u>6</u>, respectively, and Employee timely returning a signed, dated and notarized original agreement and general release in a form acceptable to the Company, in its sole and absolute discretion (the &#8220;Release&#8221;), releasing and discharging the Company and its subsidiaries and affiliates from all claims and liabilities relating to his employment with the Company and the termination of his employment, including without limitation, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act, the Equal Pay Act, ERISA, the Age Discrimination in Employment Act, the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Sarbanes-Oxley Act of 2002, the Worker Adjustment and Retraining Notification Act of 1988 and the Older Workers Benefit Protection Act of 1990.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">13.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Notices</b></u></b>.&nbsp; Any notice or other instrument or thing required or permitted to be given, served or delivered to any of the parties hereto shall be delivered personally or deposited in the United&nbsp;States mail, with proper postage prepaid, telegram, teletype, cable or facsimile transmission to the addresses listed below:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">If to the Company, to:&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">CPI Aerostructures, Inc.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">91 Heartland Blvd.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">Edgewood, NY 11717</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">Attention:&nbsp; Chairman</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 72.0pt;">With a copy to:&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">Graubard Miller</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">405 Lexington Avenue</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">New York, NY 10174</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">Attention:&nbsp; Paul Lucido&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">If to Employee, to:</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 108.0pt;">the most recent address for Employee in the Company&#x2019;s records</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 36.0pt;">or to such other address as either party may from time to time designate by notice to the other.&nbsp; Each notice shall be effective when such notice and any required copy are delivered to the applicable address.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">14.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Non-Assignment.&nbsp;</b></u></b></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of Employee, and any attempted unpermitted assignment shall be null and void and without further effect; provided, however, that, upon the sale or transfer of all or substantially all of the assets of the Company, or upon the merger by the Company into or the combination with another corporation or other business entity, or upon the liquidation or dissolution of the Company, this Agreement will inure to the benefit of and be binding upon the person, firm or corporation purchasing such assets, or the corporation surviving such merger or consolidation, or the shareholder effecting such liquidation or dissolution, as the case may be.&nbsp; After any such transaction, the term Company in this Agreement shall refer to the entity which conducts the business now conducted by the Company.&nbsp; The provisions of this Agreement shall be binding upon and inure to the benefit of the estate and beneficiaries of Employee and upon and to the benefit of the permitted successors and assigns of the parties hereto.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee agrees on behalf of Employee, Employee&#x2019;s heirs, executors and administrators, and any other person or person claiming any benefit under Employee by virtue of this Agreement, that this Agreement and all rights, interests and benefits hereunder shall not be assigned, transferred, pledged or hypothecated in any way by Employee or by any beneficiary, heir, executor, administrator or other person claiming under Employee by virtue of this Agreement and shall not be subject to execution, attachment or similar process.&nbsp; Any attempted assigned, transfer, pledge or hypothecation or any other disposition of this Agreement or of such rights, interests and benefits contrary to the foregoing provisions or the levy or any execution, attachment or similar process thereon shall be null and void and without further effect.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">15.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Severability</b></u></b>.&nbsp; If any term, clause or provision contained herein is declared or held invalid by any court of competent jurisdiction, such declaration or holding shall not affect the validity of any other term, clause or provision herein contained.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">16.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Construction</b></u></b>.&nbsp; Careful scrutiny has been given to this Agreement by the Company, Employee, and their respective legal counsel.&nbsp; Accordingly, the rule&nbsp;of construction that the ambiguities of the contract shall be resolved against the party which caused the contract to be drafted shall have no application in the construction or interpretation of this Agreement or any clause or provision hereof.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">17.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Entire Agreement</b></u></b>.&nbsp; This Agreement as amended and restated herein and the other agreements referred to herein set forth the entire understanding of the parties and supersede all prior agreements, arrangements and communications, whether oral or written, pertaining to the subject matter hereof.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">18.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Waiver</b></u></b>.&nbsp; No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing signed by Employee and an authorized officer of the Company.&nbsp; 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 such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">19.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Governing Law</b></u></b>. The validity, interpretation, construction and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to its conflicts of law principles.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">20.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><font style="color: black;"><b>Clawback</b></font></u></b><font style="color: black;">. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to Employee pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">21.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Execution</b></u></b>.&nbsp; This Agreement may be executed in counterparts, each of which shall be deemed an original and which shall constitute but one and the same Agreement.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">22.</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>Provisions Regarding Code Section&nbsp;409A</b></u></b>.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(a)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">If at the time of Employee&#x2019;s termination of employment for reasons other than death he is a &#8220;Key Employee&#8221; as determined in accordance with the procedures set forth in Treas. Reg. &#167;1.409A-1(i), any amounts payable to Employee pursuant to this Agreement that are subject to Section&nbsp;409A of the Internal Revenue Code shall not be paid or commence to be paid until six months following Employee&#x2019;s termination of employment, or if earlier, Employee&#x2019;s subsequent death.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(b)</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Reimbursements or in-kind benefits provided under this Agreement that are subject to Section&nbsp;409A of the Internal Revenue Code are subject to the following restrictions:&nbsp; (1)&nbsp;the amount of expenses eligible for reimbursements, or in-kind benefits provided, to Employee during a calendar year shall not affect the expenses eligible for reimbursement or the in-kind benefits provided in any other calendar year, and (2)&nbsp;reimbursement of an eligible expense shall be made as soon as practicable, but in no event later than the last day of the calendar year following the calendar year in which the expense was incurred.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<td valign="top" style="width:36pt;">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;"><font style="color: black;">(c)</font></p>
</td>
<td valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt;">Employee&#x2019;s right to receive installment payments pursuant to this Agreement shall be treated as the right to receive a series of separate and distinct payments.</p>
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</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in"><font style="color: black;">WITNESS the due execution of this Agreement by the parties hereto as of the day and year first above written.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt;"><font style="color: black;">CPI AEROSTRUCTURES, INC.</font></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</p>
<table style="border-collapse: collapse; width: 100%;" border="0" width="100%" cellspacing="0" cellpadding="0">

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<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">&nbsp;</font></p>
</td>
<td style="padding: 0pt 0pt 0pt 0pt;width:50%;" valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">&nbsp;</font></p>
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</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">Name:&nbsp; Douglas J. McCrosson</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">Title:&nbsp;&nbsp;&nbsp; Chief Executive Officer</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">&nbsp;</font></p>
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<td style="padding: 0pt 0pt 0pt 0pt;width:50%;" valign="top">
<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">&nbsp;</font></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;"><font style="color: black;">Name:&nbsp; Dan Azmon</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt; margin-top: 0pt; margin: 0pt 0pt 0pt 0pt;">&nbsp;</p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>ex99-1.htm
<DESCRIPTION>PRESS RELEASE DATED NOVEMBER 13, 2019
<TEXT>
<html><head><title></title></head><body>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt;"></p>
<div style="margin-top: 0pt; margin-bottom: 0pt;" align="left">
<div style="width: 100%; font-size: 1pt; border-top: 2px solid #000000;">&nbsp;</div>
</div>
<p style="font: 10pt Times New Roman, Times, serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><a href="cvu-8k_111219.htm">CPI AEROSTRUCTURES, INC. 8-K</a></p>

<p style="font: 10pt Times New Roman, Times, serif; text-align: right; margin-top: 0pt; margin-bottom: 0pt"><b>&nbsp;</b></p>

<p style="font: 10pt Times New Roman, Times, serif; text-align: right; margin-top: 0pt; margin-bottom: 0pt"><b>Exhibit 99.1</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center;">&nbsp;<img src="cvu001.jpg" alt="image"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; font-weight: bold; margin-top: 0pt; margin-bottom: 0pt;"><b><u>CPI AEROSTRUCTURES APPOINTS DAN AZMON CHIEF FINANCIAL OFFICER </u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt;"><i>- Former L3 Technologies&#x2019; Principal Accounting Officer To Start November 18, 2019 - </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;">Edgewood, N.Y., November 13, 2019 - <font style="background: white;">CPI Aerostructures, Inc. (&#8220;CPI Aero<sup>&#174;</sup>&#8221;) (the &#8220;Company&#8221;) (NYSE American: CVU) today announced the appointment of Dan Azmon as Chief Financial Officer effective November 18,&nbsp;2019, replacing Vincent Palazzolo, who has left the Company. Most recently, Mr. Azmon served as vice president, controller, and principal accounting officer of L3 Technologies, Inc. (&#8220;L3&#8221;) until the merger between L3 and Harris Corporation, now L3Harris Technologies, Inc.&nbsp; Mr. Azmon will lead CPI Aero&#x2019;s corporate accounting, financial planning &amp; analysis, treasury, tax, risk management, and investor relations activities, as well as oversee the Company&#x2019;s IT and human resources departments.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;"><font style="background: white;">&#8220;We are excited to welcome Dan to CPI Aero where he will apply his extensive experience at one of the premier Aerospace and Defense companies in the world to accelerate our efforts to improve cash flow and expand margins as we execute on the long-term programs that comprise our more than $500 million backlog,&#8221; said Douglas McCrosson, chief executive officer of CPI Aero.&nbsp; &#8220;His track record of success at L3 in building and developing talented teams, implementing innovative business processes and establishing strong financial controls that drive improved performance throughout the organization is just what we need now as we embark on a prolonged period of projected revenue growth.&nbsp; I want to thank Vince for his many contributions to CPI Aero over the past 15 years. He has played an integral role in CPI Aero&#x2019;s success to date. I wish him well in all his future endeavors.&#8221;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;"><font style="background: white;">Mr. Azmon added, &#8220;Over the past several years, CPI Aero has positioned itself for tremendous growth.&nbsp; I look forward to working with Doug, the Board of Directors, and the management team to improve overall financial performance, position the company for continued success and deliver long-term value creation for our shareholders.&#8221;</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;"><font style="background: white;">Mr. Azmon brings extensive controllership, U.S. GAAP and SEC financial reporting, mergers and acquisitions, capital markets, corporate governance and compliance, change management and investor relations experience gained in both industry and public accounting. Before joining L-3, a wholly owned subsidiary of L3Harris and previously a publicly-traded Fortune 500 defense electronics and aerospace company, in 2000, Mr. Azmon held a number of financial management and financial reporting positions at ASARCO Incorporated and Salomon Brothers, Inc., and was a manager in the audit practice at Coopers &amp; Lybrand LLP. He holds a Master of Business Administration degree from St. John&#x2019;s University in accounting and a Bachelor of Business Administration degree in finance from Hofstra University. Mr. Azmon is also a certified public accountant. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;"><b><u><b>About CPI Aero </b></u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;"><font style="background: white;">CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. CPI Aero is included in the Russell Microcap<sup>&#174;</sup> Index.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;"><font style="background: white;">The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero&#x2019;s SEC reports, including CPI Aero&#x2019;s Form 10-K for the year ended December 31, 2018, and Form 10-Q for the three-month periods ended March 31, 2019, June 30, 2019, and September 30, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;"><font style="background: white;">CPI Aero<sup>&#174;</sup> is a registered trademark of CPI Aerostructures, Inc. For more information, visit </font><font style="color: black;">www.cpiaero.com, and follow us on Twitter @CPIAERO.&nbsp; </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><b><font style="background: white;">Contact:</font></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><font>Investor Relations Counsel:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><font>LHA Investor Relations</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><font>Jody Burfening/Sanjay M. Hurry </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><font>(212) 838-3777</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><font>cpiaero@lhai.com</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
<p style="font: 10pt Times New Roman, Times, Serif; background: white; margin-top: 0pt; margin-bottom: 0pt;"><u><font style="background: white;">www.lhai.com</font></u></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
