Summary by Futu AI
On May 15, 2024, Cyngn Inc., a company listed on The Nasdaq Capital Market under the trading symbol CYN, disclosed the execution of a Severance and Change of Control Agreement with its Chief Financial Officer, Donald Alvarez. The agreement outlines the conditions under which Alvarez would receive severance benefits, including a lump sum payment, should his employment be terminated without cause or if he resigns for good reason, as well as provisions in the event of a change of control of the company. The definition of a change of control includes scenarios such as a single entity acquiring more than 50% of Cyngn's outstanding shares, a merger, or the sale of substantially all of the company's assets. The severance package includes six months of Alvarez's base salary, a pro-rated annual bonus or a lump sum equivalent for the year of termination, a portion of unvested equity awards, and six months of COBRA premium payments. The benefits are contingent upon Alvarez's execution of a release form acceptable to Cyngn Inc.