Document:

ex_332659.htm

 

Exhibit 10.3

 

Amendment No. 2 to the Executive Employment Agreement

Between Track Group, Inc. and Matt Swando Dated December 6, 2016

 

 

THIS AMENDMENT NO. 2 to that certain Executive Employment Agreement by and between Track Group, Inc. (the “Company”) and Matt Swando (the “Executive”) is entered into and effective as of January 23, 2022.

 

WHEREAS, the Company and the Executive entered into that certain Executive Employment Agreement dated December 6, 2016 (the “Employment Agreement”) and Amendment No. 1 to the Employment Agreement dated April 23, 2018 (the “Amendment No. 1”); and

 

WHEREAS, the Board of Directors of the Company has agreed to promote the Executive, and Executive has agreed to accept a promotion, from the position of Vice President of Global Sales to Chief Revenue Officer effective January 23, 2022 and agreed to the other terms contained herein.

 

NOW, THEREFORE, the Company and the Executive agree to amend the Employment Agreement and Amendment No. 1 as follows:

 

1.    Paragraph 3A shall be modified to change the base salary to $275,000 per calendar year effective January 23, 2022.

 

2.    Paragraph 3B shall be modified to make an additional one-time grant, before taxes, of one hundred and eighty-five thousand (185,000) shares of common stock of the Company under the terms of the Company’s proposed 2022 Omnibus Equity Incentive Plan (“the Plan”) (the “Shares”); provided, however, the grant of Shares shall be conditioned upon the approval of the Plan by the Board of Directors and Company’s shareholders. The Shares shall be valued at the closing price as shown on the OTC as of the date the Shares are issued by the Company’s stock registrar. The Shares will be subject to the terms and conditions of the Plan.

 

3.    Paragraph 3C shall be modified to indicate a bonus target level equivalent to fifty percent (50%) of the Executive’s new base salary subject to the both the Executive and the Company meeting criteria agreed to by the Board of Directors and adjusted annually.

 

4.    With respect to the term “Change of Control” added to Paragraph 5 of the Employment Agreement by way of Amendment No. 1, the first sentence of the “Change of Control” paragraph shall be stricken and replaced by the following: “In the event that, at any time during the Executive’s employment under this Agreement, the Company experiences a Change of Control (as hereafter defined), the Executive shall be entitled to receive a cash payment equal to twelve (12) months of Executive’s Base Annual Salary (at the Executive’s highest Base Annual Salary), plus all Restricted Stock, Warrant and Options shall become one hundred percent (100%) vested and fully exercisable and the Company shall have no repurchase right.

 

5.    Ratification. All terms and provisions of the initial Employment Agreement and Amendment No. 1 not amended hereby, either expressly or by necessary implication, shall remain in full force and effect.

 

-1-

 

 

 

IN WITNESS WEHEREOF, each of the parties has executed this Amendment No. 2 to the Executive Employment Agreement between Track Group, Inc. and Matt Swando dated January 23, 2022, in the case of the Company by its duly authorized Officer.

 

TRACK GROUP, INC.                                            EXECUTIVE

 

 

By:________________________                              By:________________________

Derek Cassell                                                             Matt Swando

Chief Executive Officer

-2-EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

(1968) VIA VAREJO S/A, a legal entity located at Rua
Joao Pessoa, No. 83 - part, Centro, São Caetano do Sul, SP, registered with the CNPJ/MF under No. 33.041.260/1613-38, herein referred
to as Employer, and FLAVIO XAVIER FERREIRA, domiciled at Rua Itajara, No. 143, in the City of São Paulo, SP, bearer of identity
card No. 44267 (series 113) and enrolled with the CPF under No. 079.587.417-07, herein referred to as Employee, enter into this Individual
Employment Agreement, which shall be governed by the clauses and conditions below.

 

1. Features of the Agreement

 

The Employee is hired to work on a telework basis,
as provided for in Articles 75-A to 75-E of the Brazilian Labor Code (“CLT”), to perform the occupation of CHIEF FINANCIAL
OFFICER, with all the assignments that are inherent thereto, as established in Clause 2 of this instrument.

 

The Employee will provide services to the Employer,
on a trial basis, for a period of 45 days, starting on 09/13/2021, which may be extended for another 45 days, pursuant to Article 443,
Paragraph 2, “c”, combined with Article 451 of the CLT, after which this agreement will be terminated by operation of law,
regardless of any notice or notification on its expiry date.

 

If the Employee remains at the service of the Employer
after the end of the probationary period referred to in the main section (caput) of this clause, this agreement will remain in
force for an indefinite period, and all other clauses and conditions provided for herein will remain valid.

 

2. Occupation

 

The activities to be conducted by the Employee are
the following:

 

RESPONSIBLE FOR ALL FINANCIAL ACTIVITIES OF THE COMPANY,
AS WELL AS FOR THE DEVELOPMENT OF POLICIES, PROCEDURES AND OBJECTIVES RELATED TO SUCH TRANSACTIONS. THEREFORE, HE SHALL ENSURE THE APPLICATION
OF SUCH GUIDELINES AND THEIR COMPLIANCE WITH INTERNAL RULES AND LEGAL STANDARDS. HE IS GIVEN PRIMARY RESPONSABILITY FOR INVESTOR RELATIONS,
FOR GATHERING FINANCIAL INFORMATION AND MAKING THEM AVAILABLE.

 

Assessment of the Employee's activities, performance
and compliance with Employer’s procedures will be conducted by the Employee's immediate superior.

 

Notwithstanding the occupations listed above, the
Employee may be appointed to any other occupations, pursuant to the company's needs, as long as they are compatible with his assignments.
The assignments are part of the company's policies and of the duties inherent to the Employee's position.

 

The Employee hereby agrees that his services may be
requested by other companies that make up the economic group of which the Employer is currently a part or of which it may be a part in
the future, as well as with his transfer to any of the aforementioned companies, without the transfer implying the termination of the
existing employment or the existence of dual or multiple employment.

 

3. Place of Work

 

The place of work will be outside the Employer's premises,
and the Employee will be responsible for choosing locations compatible with the information security and occupational safety rules provided
by the Employer. If there is a need for the Employee to attend the Employer's headquarters, or any place indicated by the Employer, for
any reason, the Employee must be previously notified.

 

    	 

    	 

    

 

Pursuant to Article 75-B of the CLT, the Employee's
showing at the company's premises to perform specific activities that require his presence at the establishment does not detract from
the requirements of telework.

 

The Employer may, at any time and without salary changes,
transfer the Employee, either temporarily or permanently, both within the scope of the unit for which he was hired and to others, anywhere
in the Brazilian territory, even if such transfer implies changing the legal residency of the Employee.

 

The Employee agrees to make trips, domestic or international,
to meet service requirement, which will be regulated by company rules.

 

The Employer may, at its discretion, change the work
arrangement from telework to on-site, the Employee being guaranteed a minimum transition period of 15 (fifteen) days, with corresponding
registration in a contractual amendment.

 

4. Position of Trust (Article 62, item II, of the
CLT)

 

The Employee, in the exercise of his duties, holds
a position of trust, as provided for in Article 62, item II, of the CLT.

 

For the position of trust to be characterized, regardless
of the number of management actions performed by the employee, he must exercise authority over a group of lower-ranking employees or,
even if he does not have subordinates, he must have powers to make decisions of an administrative, operational or business nature on behalf
of the employer.

 

5. Working Hours

 

The Employee is aware that he falls within the exception
provided for in Article 62, item II, of the CLT, and will not be subject to tracking of his working hours, being responsible for managing
his own working hours.

 

The Employee holding a position of trust has the freedom
to negotiate his entrance and exit times directly with the employer, as well as to schedule any time off, so that both the company's demands
and the employee's personal needs are accordingly met.

 

Without prejudice to his holding a position of trust,
as the Employee is teleworking, he also falls within the exception provided for in Article 62, item III, of the CLT.

 

The Employee acknowledges and agrees that work on
Sundays will be considered normal and that paid weekly rest will be taken according to the work shift, subject to the limits provided
by law and by collective labor agreements and conventions applicable to the case.

 

It is hereby agreed that if the Employee, from the
outset or at some point during his employment, has the weekly rest determined for Sundays, this condition will always be temporary, and
the Employer may, at any time, change it to another day of the week, according to any work shift that may be issued, subject to the limits
of current legislation.

 

6. Remuneration

 

The Employee will receive a fixed monthly salary of
R$43,000.00.

 

The Employee acknowledges and hereby authorizes that
any amounts related to compensation, advances, vacations and/or other credits payable and/or granted to him, including severance payments
to which he may be entitled, shall be paid preferably through deposit in his bank account, as informed by him, at Banco Bradesco S.A.,
branch No. 2403, account No. 44787. The Employee is responsible for informing to the Employer any changes in his bank details and presenting
the corresponding evidence.

 

    	 

    	 

    

 

7. Deductions

 

In addition to the deductions provided for by law,
pursuant to the main section (caput) and Paragraph 1 of Article 462 of the CLT, the Employer reserves the right to deduct from
the Employee's remuneration any amounts corresponding to losses and/or damages to which he gives rise intentionally (dolo) or with
fault (culpa) (negligence, recklessness, or unskillfulness), without prejudice to the appropriate disciplinary action, as well
as to deduct from the Employee's remuneration, under the terms of Precedent (Enunciado) No. 342, issued by the Superior Labor Court
(Tribunal Superior do Trabalho), any expenses, monthly fees or costs and/or participation fees derived from the membership or association
with cooperative, cultural or recreational entities, insurance, food, pension, healthcare, hospital or dental assistance programs, among
other agreements, provided that for the benefit of the Employee and/or his dependents.

 

8. Infrastructure and devices

 

Pursuant to the sole paragraph of Article 75-D, it
is hereby agreed between the parties that, during the period of telework, the Employee will be solely responsible for the expenses and
infrastructure necessary for the provision of services, and any expenses with electricity, internet, telephone, furniture or connection
devices will not be refundable by the Employer.

 

The Employee acknowledges and agrees that any expense
not listed in this instrument, necessary for the performance of telework or remote work, must be previously authorized by the Employer.
If agreed, the Employer will proceed with the reimbursement within 30 days, upon presentation of proof of payment by the Employee.

 

The Employer will provide the Employee with a corporate
laptop computer with access to the company's systems via VPN, pursuant to the so-called Norma Concessão de Equipamento de Microinformática
[Standard on the Right to Use Computer Device] (VV-STI-ITI-NR-001). If the Employee chooses to use his personal device to perform
the services, he must request so by signing the appropriate Request Form [Termo de Requisição].

 

The Employee acknowledges that the use of any personal
device must comply with the provisions of the BYOD policy (VV-GCO-RCI-PL-036 - Uso de Dispositivos Pessoais [Use of Personal Devices]
- BYOD), as well as provide access to company’s documents available at Service Now - Conhecimento > Documentos Institucionais
(Base de Conhecimento) > 16 - Suporte de TI (STI) - 16.04 - Gestão de Infraestrutura de Tecnologia da Informação
(ITI) - 16.04.09 - Normas.

 

The devices provided by the Employer will be under
the responsibility of the Employee, who shall ensure its safekeeping and conservation, with the Employer reserving the right to deduct
from the Employee's remuneration any amounts corresponding to the damages he gives rise intentionally (dolo) or with fault (culpa)
(negligence, recklessness or unskillfulness), without prejudice to the appropriate disciplinary action.

 

9. Access and monitoring

 

The Employee acknowledges and agrees that the Employer
has access to and monitors all devices and systems used to perform the contracted activities, without this representing a violation of
secrecy of correspondence, invasion of privacy or intimacy or moral harassment.

 

The Employee acknowledges that the misuse of information
from the Employer or the linking of the company’s image to any content unrelated to its activities are considered a wrongful act,
and the Employee is subject to the application of appropriate disciplinary actions and even dismissal with cause.

 

10. Internal Regulations, Procedures and Rules

 

The Employee undertakes to faithfully comply with
the Employer's internal rules and regulations, of which he was informed, and which are an integral part of this agreement, including that
which is the subject of internal letters, notices and communications.

 

    	 

    	 

    

 

The Employee undertakes to comply with the guidelines
on good practices for remote work, according to the communication made available by the Information Security Compliance area at Intranet
Conecta.

 

The Employee undertakes to read in its entirety the
so-called Código de Ética e Conduta [Code of Ethics and Conduct] of Via Varejo – available at http://www.viavarejo.com.br/codigo-de-conduta/,
as well as to take the mandatory training based on the company's internal policies, namely: (i) Game de Ética [Ethics Game];
(ii) Assédio Moral/Relação de Trabalho [Moral Harassment/Employment Relationship]; and (iii) Jornada de
Trabalho [Working Hours]. All trainings, which present the main guidelines of the company related to the conduct of its business and
the behavior expected from all, are available on the intranet.

 

The Employee is aware of the Código de Conduta
e Ética [Code of Ethics and Conduct], the Internal Policies [Políticas Internas] and the Normas de Segurança
[Safety Standards] applicable to the activities of Via Varejo and undertakes to use the safety equipment provided by the company, under
penalty of being punished for serious misconduct (falta grave), under the terms of current legislation and other provisions inherent
to occupational health and safety.

 

The Employee acknowledges that Via Varejo repudiates
any form of prejudice, discrimination, moral and sexual harassment, slave labor, child exploitation and inhuman and degrading working
conditions, that any act of hostility, harassment or ridicule against our employees and service providers is not accepted. All people,
without distinction, must be treated with respect and dignity, in order to ensure a healthy work environment

 

The Employee is aware of the working hours policy
and procedures, as well as that all laws and collective agreements must be respected, especially those related to work shifts, paid weekly
rest, within-workday breaks and daily rest.

 

Failure to comply with the company’s guidelines
will characterize a serious misconduct (falta grave), subject to disciplinary actions and eventual dismissal with cause, in accordance
with the law.

 

Ethics Channel: https://canaldeetica.com.br/viavarejo/
or by phone 08004504504. Via Varejo ensures the anonymity of those who wish to make their report anonymously.

 

11. Occupational safety/health standards and use
of personal protective equipment

 

The Employee undertakes to comply with the occupational
safety and health standards in his work environment, as provided for in current legislation and described in the so-called Guia Officeless
[Officeless Guide], available at Universidade Via Varejo: https://universidadeviavarejo.sa. crossknowledge.com – and acknowledges
that he may be liable for any risk arising in the event of non-compliance with the respective guidelines.

 

In addition to occupational health and safety standards,
the Employee undertakes to use the personal protective equipment provided free of charge by the Employer, when necessary, given that any
unjustified refusal to use such equipment shall characterize an act of serious misconduct, and subject the employee to the sanctions provided
for by law.

 

If necessary, the Employee expressly authorizes the
inspection of the place where he usually performs his activities, if requested by the Employer.

 

12. Confidentiality

 

The employee undertakes to keep confidential all information,
technical data, processes, procedures, training, calculations of a technical and administrative nature of which he becomes aware, directly
or indirectly, as a result of his work, including those relating to salaries, costs and service proposals, and undertakes not to disclose
them in any way, form or context, and agrees to endeavor his best efforts to prevent others from accomplishing so. It is expressly agreed
that any breach of the procedure established by the company regarding any confidential information will be treated, for all legal purposes,
as a serious misconduct (falta grave).

 

    	 

    	 

    

 

13. Image authorization

 

The Employee authorizes the Employer to use, free
of charge, during the term of the employment agreement, his picture or any other form of representation of his image, as well as his name
and statements, in any and all promotional material of the Employer, or other affiliates, related or contracted companies, through any
format or means of information transmission.

 

The authorization herein does not allow the use of
the Employee's picture, the representation of his image or his name or statements for illicit or immoral purposes, or which objectively
imply negative results to his honor, respectability or reputation.

 

The disclosure hereby authorized may be made both
in the Brazilian territory and abroad and will not imply any obligation to pay any remuneration

 

14. Data Processing

 

The Employee authorizes the Employer to, including
through any international data transfer, proceed with the processing of his personal data in accordance with the law, including for purposes
of compliance with legal obligations of any nature, as well as consents to the sharing of his personal data by the Employer, at its sole
discretion, with other persons responsible for such processing.

 

15. Dispute Resolution

 

The parties elect the courts of the judicial district
where the services are effectively rendered to settle any disputes or doubts arising from this agreement, with the exclusion of any other
venue however privileged it may be.

 

In witness whereof, the parties execute this agreement
in two (2) counterparts of equal content.

 

São Caetano do Sul, September 08, 2021.

 

 

 

___________________

DocuSigned by:

[FLAVIO XAVIER FERREIRA]

Employee

 

 

___________________

Authorized Representative (if under 18 years of age)

 

 

DocuSigned by:

[VIA VAREJO S/A]

___________________

By the Employer

 

 

DocuSigned by:

[VIA VAREJO S/A]

___________________

By the Employer

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