Document:

EXHIBIT 10.30

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement ("Agreement") dated as of June l, 2014 (the "Effective Date"), is by and between Civergy, Inc. (the "Company") and Mark Gray ("Employee").

 

WHEREAS, the Company desires to employ the Employee, and the Employee desires to be employed with the Company; and

 

WHEREAS, the Company and the Employee wish to set forth the term and conditions of the Employee’s employment with the Company.

 

NOW, THEREFORE, in consideration of the mutual promises, warranties and covenants set fo1th below, the patties hereto, intending to be legally bound, hereby agree as follows:

 

1. Employment. Effective as of the Effective Date, the Company employs the Employee and the Employee accepts employment by the Company upon the terms and conditions hereafter set forth.

 

2. Term of Employment. The employment of the Employee under this Agreement shall commence as of the Effective Date, and shall terminate on the third (3rd) anniversary of the Effective Date, unless sooner terminated pursuant to Section 7 or 8 below. The term of this Agreement is hereinafter referred to as the "Employment Period."

 

3.  Scope of Duties. During the Employment Period, the Employee shall be employed as Chairman as well as such other duties and responsibilities which may be assigned to him/her by a Company official or are otherwise consistent with the office of Chairman. The Employee shall perform such service in good faith and comply with all rules, regulations and policies established or issued by the Company. The Employee shall report to the Board of Directors of Civergy, Inc.

 

4. Compensation.

 

(a) Salary. In consideration of the services rendered by the Employee hereunder, the Company shall pay the Employee an aggregate base salary of $200,000 per annum (the "Base Salary"), payable twice monthly or otherwise in accordance with the Company's customary salary payment practices. Salary may be increased at the discretion of the Compensation Committee of the Company or if one has not been constituted, the Board of Di rectors of the Company.

 

(b) Incentive Bonus. In addition to the Base Salary, the Employee shall also be entitled to receive bonuses as determined by the Compensation Committee of the Company or if one has not been constituted, the Board of Directors of the Company.

 

(c) Benefits. The Employee shall also be entitled to:

 

(i) the use of an automobile provided by the Company;

 

(ii)  medical, life insurance, disability and other such insurance benefits which the Company may from time to time make available generally to its employees i n accordance with the terms of such benefit and welfare plans and consistent with Company standard practices;

 

(iii) 40lk, Employee Stock Ownership Plan, or other retirement benefits as are consistent with Company standard practices; and

 

(iv) vacation, paid holiday and other benefits which the Company may from time to time make available generally to its executive employees in accordance with the Company's standard past practices.

 

	 
	
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5. Business Expenses. During the Employment Period, the Company shall reimburse the Employee for all reasonable and necessary travel expenses and other disbursements incurred by him for or on behalf of the Company in the performance of his duties hereunder (hereinafter referred to as "Business Expenses") upon presentation by the Employee to the Company of appropriate expense reports.

 

6.  Illness or Death. In the event Employee is unable to work due to illness or injury during the term of his employment, and absences from work exceed Employee's available paid leave, Employee may provide notice to Company that he will take unpaid leave(s) of absence until such time as Employee is cleared to resume his employment. During such unpaid leave(s) of absence Employee will remain employed by Company and shall retain all his benefits and be eligible for all Incentive Bonuses, but will not be entitled to compensation. If the Employee dies during the Employment Period, his employment hereunder shall be deemed to terminate as of the last day of the month during which his death occurs. Upon the death of the Employee, neither the Employee nor his beneficiaries or estate shall have any further rights or claims against the Company pursuant to this Agreement, except the right to receive:

 

(a) The unpaid portion of the Base Salary, computed on a pro rata basis to the date of term i nation;

 

(b) Any earned, but unpaid commissions or other sales incentives;

 

(c) Unused personal and vacation days to which the Employee is entitled in accordance with Company Policy;

 

(d) Reimbursement for any unpaid business expenses; and

 

(e) Life insurance and other post-termination benefits in accordance with the Company welfare and benefit plans, to the extent applicable; and

 

7.  Termination; Resignation.

 

Upon furnishing of notice to the Employee, the Company may terminate the employment of the Employee for Cause at any time during the Employment period. "Cause" shall be defined in this Agreement as follows: (a) Employee's fraud, misappropriation, embezzlement or acts of similar dishonesty; (b) Employee's indictment on any felony charges, or conviction of or a plea of guilty or no contest to a felony or other crime of moral turpitude (other than a minor traffic offense); (c) Employee's illegal use of drugs at any time, or excessive use of alcohol in the workplace or while representing Company; (d) Employee's intentional and willful misconduct that may subject Company to criminal or civil liability or public disrepute; (e) Employee's breach of the duty of loyalty to Company or diversion or usurpation of corporate opportunities properly belonging to Company; (f) Employee's conduct that may cause Company or its Affiliates to be debarred from government contract work; (g) Employee's violation or willful disregard of material policies and procedures of Company; (h) Employee's breach of a material term of this Agreement or any other written agreement between Company and Employee; provided that the Company will not have "Cause" to terminate Employee's employment until the Company has provided Employee with detailed written notice of the conduct constituting "cause" and has provided Employee with a period of 30 days in which to cure such conduct, if curable as determined by the Company in good faith.

 

Employee's employment may be terminated without Cause by the Company, but only upon ninety (90) days prior written notice to Employee. If the Employee's employment is terminated by the Company without Cause, the Company shall make a lump sum payment to Employee equal to one year's Base Salary.

 

	 
	
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In addition, Employee may resign and terminate this Agreement at any time, without Cause, upon ninety (90) days prior written notice to the Company.

 

If the Employee's employment is terminated by the Company for Cause or without Cause, or in the event of Employee's resignation, his Base Salary and his eligibility for all other benefits provided by the Company shall cease as of his effective termination date, after which time the Company shall have no other further liability or obligation of any kind to the Employee under this Agreement, except the Employee shall have the right to receive:

 

(a) Any unpaid po1tion of the Base Salary, computed on a pro rata basis to the date of termination;

 

(b) Reimbursement for any unpaid business expenses; and

 

(c) Any earned but unpaid commission or incentive bonuses; and

 

(d) One year's Base Salary (in the event of a termination without Cause by the Company); and

 

(e) Any sums required to be paid by law or pursuant to the Equity Purchase Agreement and its related transaction documents.

 

8.  Employee Acknowledgments. Employee recognizes and acknowledges that in the course of Employee's employment it will be necessary for Employee to acquire information which could include, in whole or in part, information concerning the Company's sales, sales volume, sales methods, sales proposals, customers and prospective customers, suppliers and prospective suppliers, identity, practices and procedures of key purchasing and other personnel in the employ of customers and prospective customers and suppliers and prospective suppliers, amount or kind of customer's purchases from the Company, research reports, the Company's computer program, system documentation, special hardware, related software development, the Company's manuals, methods, ideas, improvements, trade secrets, intellectual property or other confidential or proprietary information belonging to the Company or relating to the Company's affairs (collectively referred to herein as "Confidential Information") and that such information is the property of the Company.

 

Employee further agrees that the use, misappropriation or disclosure of the Confidential Information would constitute a breach of trust and could cause irreparable injury to the Company and it is essential to the protection of the Company's good will and to the maintenance of the Company's competitive position that the Confidential Information be kept secret and the Employee agrees not to disclose the Confidential Information to others or use the Confidential Information to Employee's own advantage or the advantage of others. Employee further recognizes and acknowledges that it is essential for the proper protection of the business of the Company that Employee be restrained from soliciting or inducing any employee of the Company to leave the employ of the Company, or hiring or attempting to hire any employee of the Company.

 

9. Non-Disclosure of Confidential Information. Employee shall hold and safeguard the Confidential Information in trust for the Company, its successors and assigns and shall not, without the prior written consent of the Company, misappropriate or disclose or make available to anyone for use outside the Company organization at any time, either during his employment with the Company or subsequent to the termination of his employment with the Company for any reason, including, without limitation, termination by the Company for Cause, any of the Confidential Information, whether or not developed by Employee, except as required in the performance of Employee's duties to the Company.

 

	 
	
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10. Return of Materials. Except as needed by Employee for his duties on behalf of Company affiliates, upon the termination of Employee's employment with the Company for any reason, including without limitation termination by the Company for cause or without cause, Employee shall promptly deliver to the Company all correspondence, manuals, orders, letters, notes, notebooks, reports, programs, proposals and any documents and copies concerning the Company's customers or concerning products or processes used by the Company and, without limiting the foregoing, will promptly deliver to the Company any and all other documents or material containing or constituting Confidential Information.

 

11. Non-Solicitation of Customers and Suppliers. Employee shall not during his time of employment with the Company, directly or indirectly, solicit the trade of, or do business with, any customer or prospective customer, or supplier or prospective supplier of the Company for any business purpose other than for the benefit of the Company. Employee further acknowledges that, in consideration of the promises contained in the Agreement and to induce the Company to enter into this Agreement, he shall not for one (1) year following the termination of his employment with the Company, including, without limitation, termination by the Company for cause, directly or indirectly, solicit the trade of, or do business with, any person or entity whatsoever who or which is or was a customer or supplier of the Company in any of the territory or territories assigned to the Employee during the Employment Period, with respect to products of the same or similar kind as those presently or in the future distributed by the Company.

 

12. Non-Solicitation of Employees. The Employee shall not during his employment with the Company and for one (1) year following termination of Employee's employment with the Company, including, without limitation, termination by the Company for cause, directly or indirectly, solicit or induce, or attempt to solicit or induce, any employee, current or future, of the Company to leave the Company for any reason whatsoever, or hire any current or future employee of the Company.

 

13. Non-Competition. The Employee acknowledges that the Company's relationships with its customers, clients, vendors, employees and other entities are valuable business assets, and that there is a substantial likelihood that if the Employee directly or indirectly competes with the Company, it would result in the unauthorized use or disclosure of Confidential Information or interfere with the Company's relationship with its customers, clients, vendors, employees and other entities, which use or disclosure of Confidential Information would be extremely difficult to detect or prove. Therefore, and in consideration for the Employee's employment with the Company, the Employee agrees that during the period beginning on the initial date of the Employee's employment with the Company or any of its predecessors and ending on the date that is one (1) year after the termination of the Employee's employment with the Company for any reason, the Employee shall not, directly or indirectly, whether as owner, sole proprietor, pm1ner, shareholder, director, member, consultant, employee, agent, founder, co-venture pm1ner or otherwise, engage, invest or participate in or provide consultation to any person or entity in the business of providing infrastructure suppm1 services and solutions in the private sector or state or federal government marketplace that are similar to those which the Company has provided, created, has under development or are the subject of active planning from time to time during the term of the Employee's employment or reasonably may be expected to pursue in view of such services and solutions which the Company has provided, created, has under development or are the subject of active planning from time to time during the term of the Employee's employment; provided, however, the Employee may (i) own, as a passive investor, publicly-traded securities of any corporation which competes with the business of the Company so long as such securities do not, in the aggregate, constitute more than 2% of any class of outstanding securities of such corporations, and (ii) own, either directly or indirectly, any interest in Tessada & Associates, Inc.

 

14. Advice of Counsel/Restrictive Covenants. The Employee has had the opportunity to consult with independent counsel and understands the nature of and the burdens imposed by the restrictive covenants contained in this Agreement. The Employee represents and acknowledges that such covenants are reasonable, enforceable, and proper in duration, scope and effect. Moreover, Employee represents and warrants that his experience and capabilities are such that the restrictive covenants set forth herein will not prevent him from earning his livelihood and that Employee will be fully able to earn an adequate livelihood for himself aud his dependents if any of such provisions should be specifically enforced against Employee.

 

	 
	
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15. Non-Disparagement. Neither party shall, during the Employment Period, or anytime thereafter, disparage or otherwise cause any person to disparage, for any reason, in writing, verbally or otherwise, the other party or any of its related parties, subsidiaries or affiliates or any of its or their officers, directors, stockholders, employees, agents or representatives. Notwithstanding the foregoing, nothing herein shall prohibit the Company's ability to explain in a non-disparaging manner the nature of Employee's departure customers, vendors and/or employees or to respond to appropriate courts of law, even if such explanations end up being interpreted as disparaging.

 

16. Injunctive Relief. Employee acknowledges that a breach of the Confidentiality and Noncompetition provision in the Equity Purchase Agreement as applicable in this Agreement would cause irreparable damage to the Company, and in the event of Employee's breach of those provisions, the Company shall be entitled to a temporary restraining order and an injunction restraining Employee from breaching such covenants without the necessity of posting bond or proving irreparable harm, such being conclusively admitted by Employee. Nothing shall be construed as prohibiting the Company from pursuing any other available remedies for such breach, including the recovery of damages from Employee. Employee acknowledges that those restrictions are reasonable in scope and duration and are necessary to protect the Company's legitimate business interests, given the nature of the business of the Company. Employee agrees that this provision and/or the issuance of an injunction restraining Employee from breaching such covenants in accordance with their terms will not pose an unreasonable restriction on Employee's ability to earn a living, pursue his occupation or obtain employment or other work following the effective date of any termination.

 

The Employee agrees that if any court of competent jurisdiction shall hold such restrictions unreasonable as to time, geographic area, activities, or otherwise, such restrictions shall be deemed to be reduced to the extent necessary in the opinion of such court to make them reasonable.

 

17. No Prior Agreements. Employee represents and warrants that except as elsewhere agreed i n writing between Employee and Company or any affiliate of Company, he is not a party to or otherwise subject to or bound by the terms of any contract, agreement or understanding which in any manner would limit or otherwise affect his ability to perform his obligations hereunder, including, without limitation, any contract, agreement or understanding requiring nondisclosure of confidential information. Employee futher represents and warrants that his employment with the Company will not require the disclosure or use of any Confidential Information.

 

18. Covenants of the Essence. The covenants of the Employee set forth herein are of the essence of this Agreement; they shall be construed as independent of any other provision in this Agreement and the existence of any claim or cause of action of the Employee against the Company, whether predicated on this Agreement or not, shall not constitute a defense to the enforcement by the Company of these covenants.

 

19. Arbitration. The patties expressly agree that all disputes or controversies arising out of this Agreement, its performance, or the alleged breach thereof, if not disposed of by agreement, shall be resolved by arbitration in accordance with this section. Either patty must demand such arbitration only within nine (9) months after the controversy arises by sending a notice of demand to arbitrate to the American Arbitration Association (the "Association"), with a copy thereof to the other party. The dispute shall then be arbitrated by a three-arbitrator panel pursuant to the Rules of the American Arbitration Association in Denver, Colorado. In the disposition of the dispute, the arbitrators shall be governed by the express terms of this Agreement and otherwise by the laws of the State of Colorado which shall govern the interpretation of the Agreement. The decision of the arbitrators shall be final and conclusive on the parties and shall be a bar to any suit, action or proceeding instituted in any federal, state or local court or before any administrative tribunal. Notwithstanding the foregoing, judgment on any award by the arbitrators may be entered in any court of competent jurisdiction. This arbitration provision shall survive any expiration or termination of the Agreement. Notwithstanding the foregoing, upon written notice from one party to the other contemporaneously with the submission of the matter to arbitration, the arbitration may be conducted consistent with "baseball" arbitration, where each party presents its position to only one arbitrator who must choose one or the other of the two positions as the prevailing position. The parties shall bear equally the arbitration expenses, provided, however, that each party shall pay for and bear the cost of its own experts, evidence, and counsel's fees.

 

	 
	
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20. Notices. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, personally delivered, mailed or faxed if to the Employee, to the Employee's residence as contained in Company records, and if to the Company, to its principal place of business.

 

21. Assignment. This Agreement is personal in its nature and the Employee shall not without the prior written consent of the Company, assign or transfer this Agreement or any rights, duties or obligations hereunder, except as other written agreements are made with affiliates of Company.

 

22. Entire Agreement. This Agreement constitutes the full and complete understanding and agreement of the pai1ies hereto with respect to any employment of the Employee by the Company and supersedes all prior agreements and understanding with respect to the subject matter hereof, whether written or oral. This Agreement may not be changed orally, but only by an agreement in writing signed by the pa11y against whom enforcement of any waiver, change, modification or discharge is sought.

 

23. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

 

24. Remedies. All remedies hereunder are cumulative, are i n addition to any other remedies provided by law and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the exercise of any other remedy. No failure or delay in exercising any right or remedy shall operate as a waiver thereof or modify the terms of this Agreement.

 

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

 

 

	("Company") Civergy, Inc.		("Employee")	
		 	 	 	 	 
	By:	/s/ Mark Gray	 	By:	/s/ Mark Gray	 
	 	(Mark Gray, Chairman)	 	 	Mark Gray	 

  

  

6EXHIBIT 10.31

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT is entered into between Civergy, Inc., and its services company, Primetrix, LLC (“the Company”) and Dan Hollenbach (the “Employee”) and is effective on the date it is signed by the last signatory. The Company and the Employee are referred to in this Agreement together as the “Parties,” “we,” “our” or “us,” or individually as a “Party.”

 

1. EMPLOYMENT. In consideration of our respective rights and obligations set out below, the Company employs the Employee for the position and to provide the services described below, subject to the terms, covenants and conditions of this Agreement.

 

2. CONTRACT CONSIDERATION. In return for the Employee’s agreements stated in this Agreement, the Company will continue the Employee’s employment.

 

3. TERMS OF EMPLOYMENT. The Employee’s employment will terminate automatically and without notice on November 1, 2017, unless (i) we agree before that date to extend the Employee’s employment, or (ii) the Employee’s employment is terminated sooner under the other provisions of this Agreement.

 

The Employee further understands and agrees each of the following is an express condition of this Agreement and that the Company may terminate the Employee’s employment immediately without prior notice if the Employee fails to satisfy any of these conditions:

 

a. Employee Provided True Information. Understanding the Company relied on the Employee to be truthful, each fact the Employee provided or authorized anyone else to provide as part of the Employee’s application was true, and the Employee provided the Company with complete information it needed to consider the Employee’s application.

 

b. Evaluation Period. For the first three months after the date Employee’s employment begins, the Employee will be an evaluation employee who will not be eligible for the Company’s voluntary benefits, except under the terms of any individual voluntary benefit the Company then offers, and who may resign or whom the Company may terminate, immediately with or without cause, and with or without prior notice.

 

c. Employee’s Qualifications. When the Employee’s employment under this Agreement begins, and during all times Employee is employed with the Company, the Employee will have the following active qualifications/licenses: Certified Public Accountant and Bachelors Degree Of Business Administration in Accounting

 

d. Drug Screening/Medical Examination. To help ensure a safe, healthy workplace, the Company has or may implement policies for employee drug screening testing and medical examinations. Subject to such policies and applicable law, failing or refusing to take a drug screening test or medical examination may result in termination.

 

4. EMPLOYEE’S DUTIES. The Employee will provide the following services under this Agreement:

 

The Employee shall serve as Chief Financial Officer of the Company, and, if elected to such positions in accordance with law and hold such other positions and executives offices of the Company, its parent company Civergy, Inc. (“Civergy”), or Civergy’s subsidiaries or affiliates as may from time to time be authorized by the board of directors of Civergy, its parents or affiliates.

 

	 
	
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The Employee shall not be entitled to any compensation other than the compensation provided for in the Agreement for serving during the term of employment as Chief Financial Officer of the Company, or in any other office or position of the Company or any of the Company’s subsidiaries or affiliates, Civergy, or Civergy’s subsidiaries or affiliates, unless the board of directors of the Company shall have specifically approved such additional compensation.

 

The Employee will provide such services at: 10333 E Dry Creek Rd #200, Englewood, CO 80112. The Employee’s services performed for the Company and its supervisors, employees, customers and others, and the Employee’s representation of the Company regarding customers and the public, will in all events be consistent with the Company’s best interests and with the Company’s policies and standards.

 

5. Intentionally Omitted﻿.

 

6. COMPENSATION. For all services the Employee provides under this Agreement, the Company will compensate the Employee with the following package:

 

a. An annual salary of $185,000 per year. The Company’s paydays are described in its Company Employee Handbook, as amended from time to time.

 

b. Participation in a management bonus opportunity (“MBO”) plan that contains reasonable provisions designed to incentivize employees to create profit for the company and follow Company policies and procedures, while acting in an ethical and professional manner. The MBO will contain incentives of at least 20% of the Employee’s annual salary.

 

c. Participation in the Executive Vehicle Benefit Program, as amended from time to time by the Company in its sole discretion, substantially in the form attached to this Agreement as Exhibit A.

 

All compensation the Company pays the Employee may be subject to pertinent employer withholdings, e.g., for FICA, Medicare/Medicaid, any applicable occupational privilege tax, and any court ordered deductions such as garnishments; the Company has an obligation to withhold under the standards set forth by all applicable laws. Compensation may also be reduced by deductions the Employee authorizes for insurance, 401(k) contributions and other similar purposes. There will be no compensation advances, unless otherwise agreed in writing by the Company.

 

7. PROFESSIONAL EXPENSES. The Company will pay the Employee for any reimbursable expense on the next regular payday that is five weekdays or more after the date the Employee submits receipts or other sufficient evidence of payment to the Company. We will each make all reports, withholdings and payments related to any taxes reportable or due as a result of expense reimbursements.

 

8. VACATIONS, HOLIDAYS AND LEAVES. The Employee will have the vacation, holiday and leave benefits stated from time to time in the Company’s personnel policies. The Employee may take vacation or leave only with the Company’s prior approval, and the Employee agrees that any vacation or leave will be scheduled at such time as will least interfere with the Company’s business as determined in the Company’s sole discretion. The Employee’s vacation time will accrue under the schedule described in the Company’s Employee Handbook now in effect, or as the Company may modify later. The Employee’s current rate of accrual is 3 weeks per year.

 

	 
	
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9. VOLUNTARY BENEFITS. The Employee will be eligible to participate in the Company’s standard benefit plans as they pertain to any insurance, cafeteria plan, profit sharing or other voluntary employee benefit the Company chooses, from time to time, to offer its other comparable employees, subject to the participation standards and other terms of any such voluntary benefit. The Company’s current voluntary benefits are stated in the Company’s Employee Handbook, and detailed information is housed within the Human Resources Department. The Company has no obligation to adopt or to continue any voluntary benefit.

 

10. OTHER AGREEMENTS BETWEEN THE PARTIES.

 

a. Preservation of the Company or Its Affiliates’ Confidential Information. The Company or Its Affiliates own certain confidential information crucial to its business, including trade secrets and all other information not clearly known to the public about the Company or Its Affiliates’ operations, business or financial affairs, know-how, processes, marketing plans, bids, techniques, products, services, contracts, forms, research and development, plans or projections, patents, and intellectual property (including documents, templates, forms, presentations, analysis, forecasts, processes, etc.) (“Confidential Information”). The Company or Its Affiliates also owns confidential information about its Existing Customers and Prospective Customers, including their identities, contact people, needs, records, about the Company or Its Affiliates’ sources for referrals and new business, market data and patented or unpatented technology (“Customer Records”). The Company or Its Affiliates’ Confidential Information and Customer Records and all other confidential information and data relating to the Company or Its Affiliates’ business and Existing and Prospective Customers are the Company or Its Affiliates’ exclusive property, and the Employee therefore agrees that:

 

	
i.

	
All notes, data, reference materials, sketches, drawings, memoranda, disks, documentation and records in any way incorporating or reflecting any of the Confidential Information and all proprietary rights in the Confidential Information, including copyrights, trademarks, trade secrets and patents will belong exclusively to the Company or Its Affiliates;

	
 

	 
	
ii.

	
At all times during the Employee's employment with the Company or Its Affiliates, the Employee will keep secret and will not disclose to any third party, take or misuse any of the Company or Its Affiliates’ Confidential Information, Customer Records or any other confidential information the Employee acquires or has access to because of that employment, including any of the names, addresses, contact people or other identifying information for any of the Company or Its Affiliates’ Existing or Prospective Customers;

	
 

	 
	
iii.

	
At any time during or after the Employee's employment with the Company or Its Affiliates, the Employee will not use or seek to use any of the Company or Its Affiliates’ Confidential Information or Customer Records for the Employee's own benefit or for the benefit of any other person or business or in any way adverse to the Company or Its Affiliates’ interests;

	
 

	 
	
iv.

	
On the Company's request or on termination of employment, the Employee will promptly return to the Company or Its Affiliates all its property, specifically including all documents, disks or other computer media or other materials in the Employee's possession or control that contain any of the Company or Its Affiliates’ Confidential Information or Customer Records;

	
 

	 
	
v.

	
After termination of employment, the Employee will preserve the secrecy of and will not disclose directly or indirectly to any other person or business any of the Company or Its Affiliates’ Confidential Information and Customer Records; and

	
 

	 
	
vi.

	
The Employee will promptly advise the Company of any unauthorized disclosure or use of the Company or Its Affiliates’ Confidential Information or Customer Records by any person or entity.

 

The Parties agree this provision is intended to express the Company or Its Affiliates’ rights and the Employees' duties to the Company, including under the Colorado Uniform Trade Secrets Act, West's C.R.S.A. §§ 7-74-101 to 7-74-110.

 

	 
	
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 b. No Competition with the Company or Its Affiliates.

 

	
i.

	
Prohibited Actions. During the applicable time period specified in Paragraph 10(b)(iii) below, the Employee will not compete with the Company or Its Affiliates, which means the Employee will not: (i) convert for personal benefit any business opportunity the Employee knows or has reason to know the Company or Its Affiliates is pursuing or would be interested in pursuing; (ii) become associated (directly or indirectly) with any of the Company or Its Affiliates’ Competitors; or (iii) for the Employee's own benefit, or for the benefit of any of the Company's Competitors or any other person or business, solicit or accept any business from any of the Company or Its Affiliates’ Existing or Prospective Customers.

	
 

	 
	
ii.

	
Definitions. The Company or Its Affiliates’ “Competitors” include any business whose services or products compete with or are substantially similar to the Company or Its Affiliates’ services or products and that operates an office that is within the non-compete area specified in Paragraph 10(b)(iv) below anytime during the two years immediately preceding the termination of the Employee's employment with the Company or Its Affiliates. “Becoming associated with” includes, without limitation, performing any service for, receiving any compensation from or holding any ownership interest in any of the Company or Its Affiliates’ Competitors, or having any such obligation or right. The Company or Its Affiliates’ “Existing Customers” are all people and businesses with which the Company or Its Affiliates does any business or provides any products or services while the Employee is employed with the Company. The Company or Its Affiliates’ “Prospective Customers” are all people and businesses the Company has identified for itself and that are known or reasonably should be known to the Employee as being sufficiently likely to use the Company or Its Affiliates' services or products to warrant marketing efforts by the Company or Its Affiliates within six months before or after the termination of the Employee's employment with the Company.

	
 

	 
	
iii.

	
Period During which the Employee Will Not Compete. The term of the Employee's agreement not to compete will begin on the effective date of this Agreement, will be in force during the Employee's employment with the Company and will end two years after the termination of the Employee's employment with the Company. If the Employee violates this agreement not to compete, however, the term will automatically extend during all such competition and will not run again until after the Employee stops competing with the Company or Its Affiliates, so the Company or Its Affiliates is free from competition from the Employee for the full two year period stated above.

	
 

	 
	
iv.

	
Non-compete Area. The area(s) within which the Employee will not become associated with any of the Company or Its Affiliates’ Competitors as stated above is any location that is within seventy five (75) miles of the Employee's Office with the Company or Its Affiliates. The Employee's “Office” means each facility or location for which, during any period of time of at least three months during the two years immediately preceding the termination of the Employee's employment with the Company, the Employee spent the majority of the Employee's work time for the Company & Affiliates, from which the Employee principally received assignments, or to which the Employee principally reported.

	
 

	 
	
v.

	
Acknowledgments. The Employee acknowledges that the term of this Agreement Not to Compete is a minimum period of time, that the prohibited actions are reasonably limited, and that the area of restriction is reasonable and necessary to protect the Company or Its Affiliates, consistent with the provisions of West's C.R.S.A. § 8-2-113, and Colorado's Uniform Trade Secrets Act, West's C.R.S.A. §§ 7-74-101 to 7-74-110.

 

	 
	
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c. Agreement to Avoid Conflicts of Interest. Employee agrees the requirements and rewards of the Employee's position with the Company mean the Employee must devote the Employee's full work time to the Employee's employment with the Company. The Employee agrees not to hold any jobs outside the Company or Its Affiliates and not to enter into any agreement with or to accept any pay, salary, retainer, commission or consulting fee from any of the Company or Its Affiliates’ Competitors or any other company or individual without first making full disclosure to and obtaining the prior written approval of the Company. Subject to the noncompetition agreement stated in Paragraph 10(b), the confidential information agreement stated in Paragraph 10(a) and the other terms of this Agreement, the Company will permit the Employee to hold jobs outside of the Employee's employment with the Company which do not create a conflict of interest or compete with the Company or Its Affiliates, are unrelated to the Company or Its Affiliates’ business or Existing or Prospective Customers, and that do not unreasonably interfere with the Employee's performance for the Company. No outside work may be done during the Employee's work hours for the Company, and none of the Company or Its Affiliates’ facilities, equipment, labor or supplies may be used for any outside activity. If the Employee does any outside work, the Employee must advise the Employee's other employer or customer or client in writing that the work is in no way by or for the Company or Its Affiliates or in the Company or Its Affiliates’ name, and, on request, the Employee must provide the Company with a copy of each such notice.

 

Neither the Employee, the Employee's spouse or any member of the Employee's immediate family may directly or indirectly receive any gift or remuneration from, or borrow from, lend to, invest in or engage in any substantial financial transaction with an actual or potential competitor, customer, client or supplier of the Company or Its Affiliates without full disclosure to and prior written approval from the Chief Executive Officer. Permitted exceptions to the no loan and no financial transaction provision of this Agreement are for loans obtained through normal application and approval processes through accounts opened or maintained with a bank, savings and loan or other financial institution which is a customer, client, Existing or Potential Customer or supplier. Permitted exceptions to the no investment provision of this Agreement are the purchases of stock in companies traded on national stock exchanges.

 

d. Work Made for Hire. WORK MADE FOR HIRE BELONGS TO THE COMPANY. The Company will own solely, completely and exclusively any work, invention, process, product, idea or concept (whether or not it may be patented or protected by copyright) the Employee creates, conceives or develops, in whole or in part, within the scope of the Employee's employment, including during work hours for the Company or Its Affiliates or at any time using the Company's premises or any of its equipment or supplies. All such works that may be protected by copyright will be considered to be “work made for hire,” as that term is defined in 17 U.S.C.A. § 101, and the Company will own the copyright solely, completely and exclusively. Recognizing that any such work may be determined not to be a “work made for hire” and to protect the Company's sole ownership of all such work, the Employee by this Agreement assigns all of the Employee's ownership, right, title, interest and copyrights in such works completely and exclusively to the Company. Employee further agrees that:

 

	
i.

	
All notes, data, reference materials, sketches, drawings, memoranda, disks, documentation and records in any way incorporating or reflecting any of the Company's work made for hire and all proprietary rights in the work made for hire, including copyrights, trade secrets, trademarks and patents will belong exclusively to the Company;

 

	 
	
5

	

 

	
ii.

	
At all times during the Employee's employment with the Company, the Employee will keep secret and will not disclose to any third party, take or misuse any of the Company's work made for hire or any other confidential information or customer records the Employee acquires or has access to because of that employment;

	
 

	 
	
iii.

	
At any time during or after the Employee's employment with the Company, the Employee will not use or seek to use any of the Company's work made for hire for the Employee's own benefit or for the benefit of any other person or business or in any way adverse to the Company's interests;

	
 

	 
	
iv.

	
On the Company's request or on termination of employment, the Employee will promptly return to the Company all its property, specifically including all documents, disks or other computer media or other materials in the Employee's possession or control that contain any of the Company's work made for hire, confidential information or customer records;

	
 

	 
	
v.

	
After termination of employment, the Employee will preserve the secrecy of and will not disclose directly or indirectly to any other person or business any of the Company's work made for hire, confidential information or customer records;

	
 

	 
	
vi.

	
The Employee will promptly advise the Company of any unauthorized disclosure or use of the Company's work made for hire, confidential information or customer records; and

	
 

	 
	
vii.

	
The Employee will execute any instrument or document and will do all other things the Company reasonably requests (both during and after the Employee's employment with the Company) to confirm the Company's ownership and to vest in the Company complete ownership rights in any such work made for hire, ideas, concepts, products, processes and applications.

 

The Parties agree this provision is intended to express the Company's rights and the Employees' duties to the Company under copyright law, 17 U.S.C.A. § 101, and the Colorado Uniform Trade Secrets Act, West's C.R.S.A. §§ 7-74-101 to 7-74-110.

 

e. Relief the Company May Seek. The Employee further agrees that, if the Employee violates the agreements in this Paragraph 10, it would be difficult to determine the damages and lost profits which the Company or Its Affiliates would suffer as a result of such breach including, but not limited to, losses attributable to lost confidential information and increased competition. Accordingly, the Employee agrees that, if the Employee violates this Agreement, the Company will be entitled to an Order for injunctive relief and/or for specific performance, or their equivalent, from an arbitrator or a court, including requirements that the Employee take action or refrain from action to avoid competing with the Company or Its Affiliates, to preserve the secrecy of the Company or Its Affiliates’ Confidential Information and Customer Records, to avoid conflicts of interest, to preserve the Company’s rights in work made for hire and to protect the Company or Its Affiliates from additional damages, and the Employee agrees the Company does not need to post a bond to obtain an injunction and waives the Employee’s right to require such a bond.

 

f. “Company or Its Affiliates” under Paragraph 10 shall mean NWBSS, LLC, Civergy, Inc., Bion, Inc., New West Technologies, LLC, and any subsidiary or affiliate of Civergy, Inc.

 

	 
	
6

	

 

11. SUPPLIES, EQUIPMENT AND FACILITIES. The Company will provide the Employee with such supplies, equipment, facilities and services as are reasonably necessary to perform the Employee’s duties. The Company’s provision of any supplies, equipment or facilities to the Employee will not give the Employee any ownership interest in any such supplies, equipment or facilities and will not obligate the Company to continue providing supplies, equipment and facilities. The Employee’s use of the Company’s property and equipment will be consistent with the Company’s personnel policies, including any regarding Company Equipment, Safety and Security now in effect or as the Company may have later.

 

12. AUTHORITY TO OBLIGATE THE COMPANY OR TO INCUR CREDIT. The Employee is an officer of the Company, and the Employee does have the authority as provided in the Signature Policy, as approved by the Civergy Board of Directors, to accept orders, payments and supporting information from Existing and Prospective Customers and clients on behalf of the Company and to transmit them to the Company or to its suppliers. The Employee may incur credit for the Company and has authority to obligate the Company to anything, as outlined in the Signature Policy. The Signature Policy is updated by the Board of Directors and is modified from time to time, and is incorporated herein.

  

13. Intentionally Omitted

 

14. TERMINATION. The Employee’s employment under this Agreement may be terminated under Paragraphs 3 or under this Paragraph.

 

a. Termination With Notice by Either Party. After the three (3) month evaluation period specified in Paragraph 3, Either of us, with or without cause and in the sole discretion of the Party giving notice, may terminate the Employee’s employment under this Agreement at any time by giving the other Party at least ninety (90) days’ prior notice.

 

If the Company shall elect to terminate Employee's full-time employment under this Paragraph 14(a) during the term of employment set forth in Paragraph 3, Employee shall receive from the Company additional compensation after the Employee’s notice of termination, for services as a consultant, the sum of the Employee’s equivalent of one month’s salary, paid through regular payroll as salary continuation, per month, for three months following Company’s termination of Employee’s employment. In no case shall the Employee’s severance exceed three months’ salary. 

 

If the Employee terminates the Employee’s employment without giving the Company 90 days’ notice of the Employee’s termination of employment, the Company may demand that the Employee pay to Company the sum of twenty-five thousand dollars ($25,000) to compensate the Company for injury by reason of such breach of the 90-day notice requirement, it being impossible to ascertain or estimate the entire or exact cost, damage, or injury which Company may sustain by reason of the breach, and such sum is agreed on as compensation for the injury suffered by Company, and not as a penalty.

 

b. Immediate Termination by the Company. In addition to termination under Paragraphs 3 or 14(a), the Company may terminate the Employee’s employment under this Agreement immediately without prior notice on the occurrence of any one of the following:

 

	
i.

	
If the Employee neglects any of the Employee’s duties;

	
 

	 
	
ii.

	
If the Employee breaches any provision of this Agreement or of our other agreement(s);

	
 

	 
	
iii.

	
If the Employee violates any of the Company’s policies, standards or practices;

 

	 
	
7

	

 

	
iv.

	
If the Employee commits an act of fraud, dishonesty or any other act of negligent, reckless or willful misconduct in making products or providing services to the Company or for the Company;

	
 

	 
	
v.

	
If the Company decides to sell or otherwise to dispose of substantially all of the Company’s assets, or to distribute its assets to stockholders in liquidation, or otherwise to discontinue the Company’s business;

	
 

	 
	
vi.

	
If the majority of any contracts the Company has with third parties for which the Employee is the principal employee providing services or products is terminated; or

	
 

	 
	
vii.

	
If any circumstance beyond the Company’s control prevents it from operating its business or otherwise hinders, delays or prevents the Company from receiving income or increases its overhead to an extent the Company reasonably decides to reduce, modify, suspend or cease its business.

  

c. Termination due to a Change in Control. For protection of against possible termination after a change of control (defined below) of the Company and to induce to continue to serve in Employee’s present capacity with the Company or in such other capacity to which Employee may be elected or appointed, the Company will provide severance benefits in the event the employment is terminated after a change of control within one year after such change of control.

 

"Change of control" shall have occurred if:

 

a. Any person (as defined by Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) becomes the beneficial owner (as defined in Rule 13(d)-3 of the SEA) of a total of twenty percent (20%) or more of the outstanding shares of the company's common stock;

 

b. The Board of Directors of the Company is composed of a majority of directors who were not directors of the Company immediately prior to the transaction; or

 

c. The change is of the type that is required to be reported under Item 5(f) of Schedule 14 of Regulation 14A promulgated under the SEA.

 

If a change of control has occurred, Employee shall be entitled to severance benefits if Employee’s employment is terminated due to:

 

a. The assignment to Employee of any duties not consistent with Employee’s present position, or a change in titles or offices, or any failure to re-elect Employee to any positions held on the date of the change of control;

 

b. A reduction in salary or discontinuance of any bonus plans in effect on the date of the change of control; or

 

c. A change in geographic location from where Employee’s position is presently based to a base in excess of fifty (50) miles or required travel of more than fifty (50) miles in excess of Employee’s present business travel schedule.

 

	 
	
8

	

 

Employee shall be entitled to severance benefits if Employee’s employment is terminated by the company after a change of control. Such termination must not be due to insubordination, failure to perform duties, any termination under 14(b), or any other reason that would be considered just cause for termination.

 

Employee's severance benefits after a change of control has occurred shall be:

 

i. A lump-sum payment of one times the amount of Employee’s annual base salary; and

 

ii. A lump-sum payment equal to twelve months of the Employee’s health and welfare benefit costs, grossed up, to cover twelve months of COBRA payments.

 

Employee shall not be required to mitigate the amount of any payment provided under these severance benefits by seeking other employment and none of these payments may be reduced by any future salary Employee may earn.

 

d. Final Salary Payment. The Employee’s final paycheck will be reduced by the amount of any lawful charge or indebtedness the Employee owes the Company, for any reason, including fees, transactional monies, employee contributions, etc.

 

15. CONFIDENTIALITY OF AGREEMENT. The Employee will not disclose any terms of this Agreement other than the Employee’s compensation to any person with the exception of accountants or attorneys whom the Employee may consult during the negotiation or performance of this Agreement, or as may be required by law. The Employee acknowledges that this is a material covenant of this Agreement, a breach of which will be cause for immediate termination without notice.

 

16. ASSIGNMENT OF RIGHTS OR OBLIGATIONS. The Company may assign its rights or obligations under this Agreement at any time after the effective date without advance notice to the Employee; the Employee may assign the Employee's rights or obligations under this Agreement only with the Company's prior written agreement.

 

17. INDEMNIFICATION. The Employee will indemnify the Company and its directors, officers, agents, employees, successors and permitted assigns against any lawsuit, claim, liability or expense (including attorneys' fees, court or arbitration costs and any judgment) which results from the acts or failures to act by the Employee, including any alleged or proven misconduct or neglect by the Employee.

 

18. ENTIRE AGREEMENT; AMENDMENT; ENFORCEABILITY; INTERPRETATION. This Agreement expresses our entire understanding about its subject matter and is the only agreement, promise or understanding on which we are relying in performing the duties this Agreement describes. The only way this Agreement may be amended, changed or waived will be through a written document we both sign. This Agreement is enforceable by and against each Party and anyone else who has or who obtains rights under this Agreement from either Party. All provisions in this Agreement that state obligations and rights that will continue or arise after the termination of the Employee's employment with the Company will survive the termination of that employment and will remain fully enforceable by the Party entitled to demand performance from the other Party. This Agreement will be interpreted and enforced under Colorado law. No part of this Agreement should be construed against either Party on the basis of authorship. Any unenforceable provision of this Agreement will be modified to the extent necessary to make it enforceable or, if that is not possible, will be severed from this Agreement, and the remainder of this Agreement will be enforced to the fullest extent possible.

 

	 
	
9

	

 

19. ARBITRATION. To the maximum extent permitted by law, the Company has the option to arbitrate any dispute between us that we cannot resolve ourselves, which includes any dispute about whether our dispute should be arbitrated or any aspect of this Agreement, through binding arbitration by Littleton Alternative Dispute Resolution (LADR). The Company may waive its arbitration option by filing a lawsuit against or naming the Employee. In any lawsuit or claim the Employee brings against or naming the Company, the Company will have until the date its answer or other response is due in that lawsuit to notify the Employee that the Company will exercise its arbitration option. The arbitrator's procedures or rules then in effect for employment disputes will govern any arbitration between us and the arbitration will take place in Douglas County, Colorado.

 

THE EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT TO ARBITRATE ALL ARBITRABLE DISPUTES MEANS THE EMPLOYEE IS AGREEING TO WAIVE TO THE MAXIMUM EXTENT PERMITTED BY LAW ANY RIGHT THE EMPLOYEE MAY HAVE TO ASK FOR A JURY OR COURT TRIAL IN ANY DISPUTE WITH THE COMPANY.

 

Any litigation between us will be in the County or District Court for County, Colorado, as appropriate based on the claims in any such litigation. All claims in any litigation between us will be tried to and decided by the court, rather than a jury.

 

THE EMPLOYEE UNDERSTANDS THAT THIS AGREEMENT TO TRY ALL CLAIMS TO THE COURT IN ANY LITIGATION WITH THE COMPANY MEANS THE EMPLOYEE IS AGREEING TO WAIVE TO THE MAXIMUM EXTENT PERMITTED BY LAW ANY RIGHT THE EMPLOYEE MAY HAVE TO ASK FOR A JURY TRIAL IN ANY DISPUTE WITH THE COMPANY.

 

20. ATTORNEYS’ FEES; EXPERTS’ FEES; COSTS. In any litigation of any dispute between us, in addition to any relief, order or award that enters, if the Company is the prevailing Party, it will be awarded reasonable attorneys' fees, expert witness fees and costs. We will equally share the arbitrator's fees and expenses in any arbitration between us.

 

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10

	

 

Each Party has read and considered this Agreement carefully, believes that Party understands each provision, and has conferred, or has had the opportunity to confer, with the Party’s own attorney before executing this Agreement.

 

IN WITNESS OF OUR AGREEMENTS, the Company and the Employee have executed this Agreement on the date(s) indicated below.

 

 

	
Civergy, Inc. and

Primetrix, LLC

		
THE EMPLOYEE:

	
		 	 	 	 	 
	By:		 	
Signature

		 
			 	 		 
	
Title:

		 	Date:		 
	
 

					
	
Date:

					

 

 

11

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