Item 5.02 Departure of Directors
or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b)
Ben
Lu and Archer have reached an agreement regarding Mr. Lu’s resignation from his position as the Company’s Chief Financial
Officer effective on January 21, 2022 (the “Resignation Date”). Mr. Lu will provide transitional consulting services
to the Company through April 15, 2022 (the “Consulting Agreement”). Mr. Lu’s resignation was not because of
any disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including accounting
principles and practices.
In
connection with Mr. Lu’s resignation from his position as the Company’s Chief Financial Officer, the Company and Mr. Lu
have entered into a separation agreement (the “Separation Agreement”) that provides for a general release and waiver of claims
in favor of the Company, in exchange for (i) an amendment to the Global RSU Award Agreement, dated December 8, 2021 (the “RSU
Agreement”), to accelerate 100,000 of Mr. Lu’s unvested RSUs, which represents 1/6th of the shares underlying
such RSU Agreement, (ii) a lump sum payment to Mr. Lu in the amount of $250,000, which equals six months of Mr. Lu’s
base salary, (iii) a lump sum payment to Mr. Lu in the amount of $105,769, which equals Mr. Lu’s unearned prorated
2021 discretionary performance-based bonus payment, and (iv) payments with respect to six months’ COBRA benefits.
The
foregoing descriptions of the Consulting Agreement and Separation Agreement are qualified in their entirety by reference to the full text
of the Consulting Agreement and Separation Agreement, respectively, which will be filed as exhibits to the Company’s Quarterly Report
on Form 10-Q for the fiscal quarter ending March 31, 2022.
(c)
On January 21,
2022, the Company’s board of directors appointed Mark Mesler, age 53, to become the Company’s Chief Financial Officer
(“CFO”) effective February 7, 2022.
Prior to joining the Company,
Mr. Mesler served as the Chief Financial Officer of Volansi Inc., an aerial logistics and drone company, from November 2020
to January 2022, as Vice President of Finance for Bloom Energy, Inc., a company producing solid oxide fuel cells, from August 2009
to November 2020, and in various other finance roles from January 1991 through August 2009. Mr. Mesler has a B.S.
in Finance from Penn State University and an M.B.A. from Carnegie Mellon University’s Tepper School of Business.
There are no family relationships,
as defined in Item 401 or Regulation S-K, between Mr. Mesler and any of the Company’s executive officers or directors or persons
nominated or chosen to become directors or officers. There is no arrangement or understanding between Mr. Mesler and any other persons
pursuant to which Mr. Mesler was selected as an officer. Mr. Mesler is not a party to any transaction required to be disclosed
pursuant to Item 404(a) of Regulation S-K.
In connection with his appointment
as CFO, Mr. Mesler and the Company entered into an Offer Letter dated January 15, 2022
(the “Offer Letter”). Pursuant to the Offer Letter, Mr. Mesler will receive an initial annual base salary of $500,000.
In addition, Mr. Mesler will be eligible to participate in the Company’s bonus plan and will have a target annual bonus of
$250,000. Mr. Mesler will also be granted a restricted stock unit (“RSU”) award under the Company’s 2021 Equity
Incentive Plan to acquire such number of shares of the Company’s Class A Common Stock equal to $4,000,000 divided by the average
daily closing price of the Company’s Class A Common Stock during the month in which his employment starts (the “RSU Grant”).
The RSU Grant will vest with respect to 25% of the total number of RSUs on the applicable quarterly vesting date following the one-year
anniversary of Mr. Mesler’s start date and an additional 1/16th of the total number of RSUs subject to the RSU Grant quarterly
over the following twelve quarters for so long as Mr. Mesler remains employed as CFO of the Company.
The
foregoing descriptions of the Offer Letter are qualified in their entirety by reference to the full text of the Offer Letter, which will
be filed as exhibits to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2022.
Mr.
Mesler has also entered into the Company’s standard form of indemnity agreement, which is attached as Exhibit 10.26 to the Company’s Form 8-K filed with the Securities and Exchange Commission on September 16, 2021 (File No. 001-39668).
(e)
The
information set forth above under 5.02(c) is hereby incorporated by reference into this Item 5.02(e).