Document:

EXHIBIT 10.20

    

    

    THE OHIO VALLEY BANK COMPANY

    DIRECTOR DEFERRED FEE AGREEMENT

    

    

    THIS AGREEMENT is made this first day of December, 1996 by and between The Ohio Valley Bank Company (the "Company"), and Jeffrey E. Smith (the "Director").

    

    

    INTRODUCTION

    

    

    To encourage the Director to remain a member of the Company's Board of Directors, the Company is
        willing to provide to the Director a deferred fee opportunity. The

       Company will pay the benefits from its general assets. 

    

    

    AGREEMENT

    

    

    The Director and the Company agree as follows:

    

    

    Article 1

    Definitions

    

    

    1.1 Definitions. Whenever used in this Agreement, the following words and phrases shall have the meanings specified:

    

    

    1.1.1 "Code" means the Internal Revenue Code of 1986, as amended.  References to a Code section shall be deemed to be to that section as it now exists and to any successor
        provision.

    

    

    1.1.2 "Disability" means the Director's inability to perform substantially all normal duties of a director, as determined by the Company's Board of Directors in its sole discretion.
        As a condition to any benefits, the Company may require the Director to submit to such physical or mental evaluations and tests as the Board of Directors deems appropriate.

    

    

    1.1.3 "Distribution Date" means December 31, 2020.

    

    

    

    

    1.1.4 "Election Form" means the Form attached as Exhibit 1.

    

    

    

    

    1.1.5 "Fees" means the total directors fees payable to the Director.

    

    

    

    

    1.1.6 "Normal Termination Date" means the Director attaining age 71.

    

    

    

    

    1.1.7            "Termination of Service" means the Director's ceasing to be a member of the Company's Board of Directors for any
        reason whatsoever.

    

    

    

    

    Article 2

    Deferral Election

    

    

    2.1  Initial Election. The Director shall make an initial deferral election under this Agreement by filing with the Company a signed Election Form within 30 days after the date of
        this Agreement. The Election Form shall set forth the amount of fees to be deferred and the form of benefit payment. The Election Form shall be effective to defer only Fees earned after the date the Election Form is received by the Company.

    

    

    2.2 Election Changes

    

    

    2.2.1   Generally. The Director may modify the amount of Fees to be deferred by filing a subsequent signed Election Form with the Company. The modified deferral shall not be effective until the calendar year following the year in which
        the subsequent Election Form is received by the Company. The Director may not change the form of benefit payment initially elected under Section 2.1.

    

    

    2.2.2   Hardship. If
        an unforeseeable financial emergency arising from the death of a family member, divorce, sickness, injury, catastrophe or similar event outside the control of the Director occurs, the Director, by written instructions to the Company may reduce
        future deferrals under this Agreement or, may cease deferrals under this Agreement.

    

    

    Article 3

    Deferral Account

    

    

    3.1 Establishing and Crediting. The  Company shall establish a Deferral Account on its
        books for the Director, and shall credit to the Deferral Account the following amounts:

    

    

    3.1.1 Deferrals. The Fees deferred by the Director as of the time the Fees would have otherwise been paid to the Director.

    

    

    3.1.2 Interest. On each anniversary of the date of this Agreement and immediately prior to the payment of any benefits, interest on the account balance since the preceding credit
        under this Section 3.1.2, if any, at an annual rate compounded annually, equal to the rate determined by the Company's Board of Directors, in its sole discretion.

    

    

    3.2 Statement of Accounts. The Company shall provide to the Director, within one hundred twenty (120) days after each anniversary of this
        Agreement, a statement setting forth the Deferral Account balance.

    

    

    3.3 Accounting Device Only. The Deferral Account is solely a device for measuring amounts to be paid under this Agreement. The Deferral Account
        is not a trust fund of any kind. The Director is a general unsecured creditor of the Company for the payment of benefits. The benefits represent the mere Company promise to pay such benefits. The Director's rights are not subject in any manner to
        anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Director's creditors.

    

    

    

    

    Article 4

    Lifetime Benefits

    

    

    4.1 Normal Termination Benefit. Upon the Director's Termination of Service, the Company shall pay to the Director the benefit described in this Section
        4.1.

    

    

    4.1.1 Amount of Benefit. The benefit under this Section 4.1 is the Deferral Account balance at the Director's Termination of Service.

    

    

    4.1.2 Payment of Benefit,  _The Company shall pay the benefit to the Director in the

    form elected by the Director on the Election Form.

    

    

    4.2 Early Termination Benefit. If the Director terminates service as a director before the Normal Termination Date, and for reasons other than death,
        the Company shall pay to the Director the benefit described in this Section 4.2.

    

    

    4.2.1 Amount of Benefit. The benefit under this Section 4.2 is the Deferral Account balance at the Director's Termination of Service.

    

    

    4.2.2 Payment of Benefit. The Company shall pay the benefit to the Director in the form elected by the Director on the Election Form.

    

    

    4.3 Disability Benefit. If the Director terminates service as a director for Disability prior to the Normal Retirement Date, the Company shall pay to
        the Director the benefit described in this Section 4.3.

    

    

    4.3.l Amount of Benefit. The benefit under this Section 4.3 is the Deferral Account balance at the Director's Termination of Service.

    

    

    4.3.2 Payment of Benefit. The Company shall pay the benefit to the Director in the form elected by the Director on the Election Form.

    

    

    4.4 Hardship Distribution. Upon the Company's determination (following petition by the Director) that the Director has suffered an unforeseeable
        financial emergency as described in Section 2.2.2 , the Company shall distribute to the Director all or a portion of the Deferral Account balance as determined by the, Company, but in no event shall the distribution be greater than is necessary to
        relieve the financial hardship.

    

    

    Article 5

    Death Benefits

    

    

    

    

    5.1 Death During Active Service. If the Director dies while in the active service of the Company, the Company shall pay to the Director's beneficiary
        the benefit described in this Section 5.1

    

    

    5.1.1 Amount of Benefit. The benefit under Section 5.1 is $745,000.00.

    

    

    

    

    5.1.2 Payment of Benefit. The Company shall pay the benefit to the beneficiary within 30 days following the Director's death in the form elected by the Director on the Election Form.

     

      

    5.2 Death During Benefit Period. If the Director dies after benefit payments have commenced under this Agreement but before receiving all such payments, the Company shall pay the remaining
        benefits to the Director's beneficiary at the same time and in the same

    amounts they would have been paid to the Director had the Director survived.

    

    

    Article 6

    Beneficiaries

    

    

    6.1 Beneficiary Designations. The Director shall designate a beneficiary by filing a written designation with the Company. The Director may revoke or modify the designation at any time by
        filing a new designation. However, designations will only be effective if signed by the Director and accepted by the Company during the Director's lifetime. The Director's beneficiary designation shall be deemed automatically revoked if the
        beneficiary predeceases the Director, or if the Director names a spouse as beneficiary and the marriage is subsequently dissolved. If the Director dies without a valid beneficiary designation, all payments shall be made to the Director's surviving
        spouse, if any, and if none, to the Director's surviving children and the descendants of any deceased child by right of representation, and if no children or descendants survive, to the Director's estate.

    

    

    6.2 Facility of Payment; If a benefit is payable to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of his or her property, the Company may
        pay such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Company may require proof of incompetency, minority or guardianship as it may deem appropriate
        prior to distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit.

    

    

    Article 7

    General Limitations

    

    

    Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement that is
        attributable to the Company's matching contributions or the interest earned on such contributions:

    

    

    7.1 Excess Parachute Payment. To the extent the benefit would be an excess parachute payment under Section 280G of the Code.

    

    

    7.2 Termination for Cause. If the Company terminates the Director's service as a director for:

    

    

    7.2.1           Gross negligence or gross neglect of
        duties;

    

    

    7.2.2           Commission of a felony or of a gross
        misdemeanor involving moral turpitude;

    

    

    or:

    

    

    7.2.3            Fraud,
        disloyalty, dishonesty or willful violation of any law or significant Company policy committed in connection with the Director's service and resulting in an adverse financial effect on the Company.

    

    

    

    

    7.3 Suicide.  If the Director commits suicide within two years after the date of this Agreement, or if the Director has made any material misstatement of fact on any  application
        for life insurance purchased by the Company.

    

    

    Article 8

    Claims and Review Procedures

    

    

    8.1 Claims Procedure. The Company shall notify the Director's beneficiary in writing, within ninety (90) days of his or her written application for benefits, of his or her
        eligibility or noneligibility for benefits under the Agreement. If the Company determines that the beneficiary is not eligible for benefits or full benefits, the notice shall set forth (1) the specific reasons for such denial, (2) a specific
        reference to the provisions of the Agreement on which the denial is based, (3) a description of any additional information or material necessary for the claimant to perfect his or her claim, and a description of why it is needed, and (4) an
        explanation of the Agreement's claims review procedure and other appropriate information as to the steps to be taken if the beneficiary wishes to have the claim reviewed. If the Company determines that there are special circumstances requiring
        additional time to make a decision, the Company shall notify the beneficiary of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional ninety-day period.

    

    

    8.2 Review Procedure. If the beneficiary is determined by the Company not to be eligible for benefits, or if the beneficiary believes that he or she is entitled to greater or
        different benefits, the beneficiary shall have the opportunity to have such claim reviewed by the Company by filing a petition for review with the Company within sixty (60) days after receipt of the notice issued by the Company. Said petition shall
        state the specific reasons which the beneficiary believes entitle him or her to benefits or to greater or different benefits. Within sixty (60) days after receipt by the Company of the petition, the Company shall afford the beneficiary (and
        counsel, if any) an opportunity to present his or her position to the Company orally or in writing, and the beneficiary (or counsel) shall have the right to review the pertinent documents. The Company shall notify the beneficiary of its decision in
        writing within the sixty-day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the beneficiary and the specific provisions of the Agreement on which the decision is based. If, because of the
        need for a hearing, the sixty-day period is not sufficient, the decision may be deferred for up to another sixty-day period at the election of
        the Company, but notice of this deferral shall be given to the beneficiary.

    

    

    Article 9

    Amendments and Termination

    

    

    The Company may amend or terminate this Agreement at any time prior to the Director's Termination of Service by written
        notice to the Director. In no event shall this Agreement be terminated without payment to the Director of the Deferral Account balance attributable to the Director's deferrals and interest credited on such amounts.

    

    

    Article 10

    Miscellaneous

    

    

    10.1 Binding Effect. This Agreement shall bind the Director and the Company, and their beneficiaries, survivors, executors, administrators and transferees.

    

    

    10.2 No Guaranty of Employment. This Agreement is not a contract for services. It does not give the Director the right to remain a director of the Company, nor does it interfere
        with the shareholders' rights to replace the Director. It also does not require the Director to remain a director nor interfere with the Director's right to terminate services at any time.

    

    

    10.3 Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

    

    

    10.4 Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement.

    

    

    10.5 Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of Ohio, except to the extent preempted by the laws of the United States of America.

    

    

    10.6 Unfunded Arrangement. The Director and beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the
        mere promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the
        Director's life is a general asset of the Company to which the Director and beneficiary have no preferred or secured claim.

    

    

    IN WITNESS WHEREOF, the Director and a duly authorized Company officer have signed this Agreement.

    

    

    

    

    	 DIRECTOR: 

            	 	 	COMPANY:
	 	 	 	The Ohio Valley Bank Company
	 	 	 	 
	
            Jeffrey E. Smith

          	 By:	 

          	
            James L. Dailey

          
	 	 Title:	 

          	
            Chairman and CEO

          

    

    

    

    

    

    
      
        

    

    

    

    

    THE OHIO VALLEY BANK COMPANY

    EXHIBIT I

    TO

    DEFERRED FEE AGREEMENT

    

    

    Deferral Election

    Jeffrey E. Smith

    

    

    I elect to defer compensation under my Deferred Fee Agreement with the Company, as follows:

    

    

    	
            Amount of Deferral

          	
            Frequency of Deferral

          	
            Duration

          
	
            ____

          	
            I elect to defer __ of Annual Fees

          	
            ____

          	
            Monthly

          	
            ____

          	
            For _

          	
            Months

          
	
            __X__

          	
            I elect to defer $10,000.00

          	
            __X__

          	
            Yearly

          	
            ____

          	
               For _ _

          	
            Years

          

    I understand that I may change the amount, frequency and duration of my deferrals by filing a new election form with the Company; provided, however,
        that any subsequent election will not be effective until the calendar year following the year in which the new election is received by the Company.

    

    

    Form of Benefit

    

    

    I elect to receive benefits under the Agreement in the following form:

    

    

    [Initial One]

    

    

    Lump sum

    

    

    Equal monthly installments for 240 months

    

    

    

    

    

    

    	
            I understand that I may not change the form of benefit elected, even if I later change the amount of my deferrals under the Agreement.

             

          

    

    

    

    

    

    
      
        

    

    

    THE OHIO VALLEY BANK COMPANY

    FIRST AMENDMENT TO THE

    DIRECTOR DEFERRED FEE AGREEMENT

    

    

    THIS  AMENDMENT  executed  on this 20th day of May, 2003, by and between THE OHIO VALLEY BANK COMPANY, located in Gallipolis, Ohio
        (the "Company"), and JEFFREY E. SMITH (the "Director").

    

    

    On December 1, 1996, the Company and the Director executed THE OHIO VALLEY BANK COMPANY DEFERRED FEE AGREEMENT (the
        "Agreement").

    

    

    The undersigned hereby amends, in part, said Agreement for the purpose of revising the Death Benefits provision. Therefore,

    

    

    Section 5.1.1 of the Agreement shall he deleted in its entirety and replaced by the new Section 5.1.1 as follows:

    

    

    5.1.1 Amount of Benefit. The benefit under this Section 5.1 is the Deferral Account balance at the Executive's death.

    

    

    IN WITNESS OF THE ABOVE, the Director and the Company have agreed to this First Amendment.

    

    

    

    

    

    

    

    	DIRECTOR: 

          	 	 	 	COMPANY:
	  

          	 	 	 	The Ohio Valley Bank Company
	 	 	 	 	 
	
            Jeffrey E. Smith

          	 	
            By:

          	 	
            James L. Dailey

          
	 	 	
            Title:

          	 	
            Chairman of the Board

          

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        

    

    

    THE OHIO VALLEY BANK COMPANY

    SECOND AMENDMENT TO THE

    DIRECTOR DEFERRED FEE AGREEMENT

    THIS SECOND AMENDMENT (the “Amendment”) is adopted this 29th day of March, 2018, by The Ohio Valley Bank
        Company (the “Company”) and Jeffrey E. Smith (the “Director”).

    The Company and the Director executed a certain Director Deferred Fee Agreement December 1, 1996 (as
        amended, the “Agreement”).  The Company and the Director now wish to amend the Agreement to comply with recent Department of Labor requirements regarding Claims and Review Procedures.

    Now, therefore, the Company and the Director amend the Agreement as follows.

    Article 8 of the Agreement shall be deleted and replaced by the following:

    ARTICLE 8

    CLAIMS AND REVIEW PROCEDURES

    8.1 Claims Procedure.  A person who believes that he or
        she is being denied a benefit to which he or she is entitled hereunder (a “Claimant”) shall make a claim for such benefits as follows.

    (a) Initiation – Written Claim.  The Claimant initiates a claim by submitting to the
        Company (referred to as the “Plan Administrator” in this Article 8) a written claim for the benefits.  If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was
        received by the Claimant.  All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred.  The claim must state with particularity the determination desired by the
        Claimant.

    (b) Timing of Plan Administrator Response.  The Plan Administrator shall respond to such Claimant within forty-five (45) days after receiving the claim.  If the Plan Administrator determines that
        special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional thirty (30) days by notifying the Claimant in writing, prior to the end of the initial forty-five (45)
        day period, that an additional period is required.  The extension notice shall specifically explain the standards on which entitlement to a disability benefit is based, the unresolved issues that prevent a decision on the claim and the additional
        information needed from the Claimant to resolve those issues, and the Claimant shall be afforded at least forty-five (45) days within which to provide the specified information.

    (c) Notice of Decision.  If the Plan Administrator denies all
        or a part of the claim, the Plan Administrator shall notify the Claimant in writing of such denial in a culturally and linguistically appropriate manner.  The Plan Administrator shall write the notification in a manner calculated to be understood
        by the Claimant.  The notification shall set forth:  (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a notice that the Claimant has a right to request a
        review of the claim denial and an explanation of the Plan’s review procedures and the time limits applicable to such procedures; (iv) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse
        benefit determination on review, and a description of any time limit for bringing such an action; (v) for any Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (A) the views
        presented by the Claimant of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant; (B) the views of medical or vocational experts whose advice was obtained on behalf of the Company in connection
        with a Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or (C) a disability determination regarding the Claimant presented by the Claimant made by the Social
        Security Administration (vi) for any Disability claim, the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse determination or, alternatively, a statement that such rules,
        guidelines, protocols, standards or other similar criteria do not exist; and (viii) for any Disability claim, a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents,
        records, and other information relevant to the Claimant’s claim for benefits. Whether a document, record, or other information is relevant to a claim for benefits shall be determined by Department of Labor Regulation Section 2560.503-1(m)(8).

    8.2 Review Procedure.  If the Plan Administrator denies
        all or a part of the claim, the Claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial as follows.

    (a) Additional Evidence.  Prior to the review of the denied
        claim, the Claimant shall be given, free of charge, any new or additional evidence considered, relied upon, or generated by the Plan Administrator, or any new or additional rationale, as soon as possible and sufficiently in advance of the date on
        which the notice of adverse benefit determination on review is required to be provided, to give the Claimant a reasonable opportunity to respond prior to that date.

    (b) Initiation – Written Request.  To initiate the review,
        the Claimant, within sixty (60) days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review.

    (c) Additional Submissions – Information Access.  After such
        request the Claimant may submit written comments, documents, records and other information relating to the claim.  The Plan Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all
        documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits.

    (d) Considerations on Review.  In considering the review, the
        Plan Administrator shall consider all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. Additional considerations shall
        be required in the case of a claim for Disability benefits. The claim shall be reviewed by an individual or committee who did not make the initial determination that is subject of the appeal and who is not a subordinate of the individual who made
        the determination.  Additionally, the review shall be made without deference to the initial adverse benefit determination. If the initial adverse benefit determination was based in whole or in part on a medical judgment, the Plan Administrator will
        consult with a health care professional with appropriate training and experience in the field of medicine involving the medical judgment. The health care professional who is consulted on appeal will not be the same individual who was consulted
        during the initial determination and will not be the subordinate of such individual. If the Plan Administrator obtained the advice of medical or vocational experts in making the initial adverse benefits determination (regardless of whether the
        advice was relied upon), the Plan Administrator will identify such experts.

    (d) Timing of Plan Administrator Response.  The Plan
        Administrator shall respond in writing to such Claimant within forty-five (45) days after receiving the request for review.  If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan
        Administrator can extend the response period by an additional forty-five (45) days by notifying the Claimant in writing, prior to the end of the initial forty-five (45) day period, that an additional period is required.  The notice of extension
        must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

    (e) Notice of Decision.  The Plan Administrator shall notify
        the Claimant in writing of its decision on review.  The Plan Administrator shall write the notification in a culturally and linguistically appropriate manner calculated to be understood by the Claimant.  The notification shall set forth:  (i) the
        specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and
        copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; (iv) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a); (v) for
        any Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (A) the views presented by the Claimant of health care professionals treating the Claimant and vocational professionals
        who evaluated the Claimant; (B) the views of medical or vocational experts whose advice was obtained on behalf of the Company in connection with a Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in
        making the benefit determination; or (C) a disability determination regarding the Claimant presented by the Claimant made by the Social Security Administration; and (vi) for any Disability claim, the specific internal rules, guidelines, protocols,
        standards or other similar criteria relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria do not exist;.

    8.3 Exhaustion of Remedies.  The Claimant must follow these claims
        review procedures and exhaust all administrative remedies before taking any further action with respect to a claim for benefits.

    8.4 Failure of Plan to Follow Procedures. In the case of a claim for
        Disability benefits, if the Plan Administrator fails to strictly adhere to all the requirements of this claims procedure with respect to a Disability claim, the Claimant is deemed to have exhausted the administrative remedies available under the
        Plan, and shall be entitled to pursue any available remedies under ERISA Section 502(a) on the basis that the Plan Administrator has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim, except
        where the violation was: (a) de minimis; (b) non-prejudicial; (c) attributable to good cause or matters beyond the Plan Administrator’s control; (d)
        in the context of an ongoing good-faith exchange of information; and (e) not reflective of a pattern or practice of noncompliance.  The Claimant may request a
        written explanation of the violation from the Plan Administrator, and the Plan Administrator must provide such explanation within ten (10) days, including a specific description of its basis, if any, for asserting that the violation should not
        cause the administrative remedies to be deemed exhausted. If a court rejects the Claimant’s request for immediate review on the basis that the Plan Administrator met the standards for the exception, the claim shall be considered as re-filed on
        appeal upon the Plan Administrator’s receipt of the decision of the court. Within a reasonable time after the receipt of the decision, the Plan Administrator shall provide the claimant with notice of the resubmission.

    Both the Company
          and the Director agree that this amendment shall not be considered a “material modification” of the Agreement for purposes of Internal Revenue Code
          Section 409A.  Consequently, the Agreement shall continue to be “grandfathered” such that Code Section 409A does not apply to this Agreement.

    IN WITNESS WHEREOF, the Director and a duly authorized representative of the Company have executed this
        Amendment as indicated below:

    

    

    

    

    

    
      	
               Director 

                

            	 	
               Company:

            
	
               

            	 	
               

            
	
               Jeffrey Smith 

                

            	 By:	
               

            
	 	 Its:Exhibit

        
Exhibit 10.8

Execution Copy

EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated as of May 8, 2018 (this “Agreement”), by and between MDC PARTNERS INC., a corporation existing under the laws of Canada (the “Company”), and VINCENZO DIMAGGIO (the “Executive”).

W I T N E S S E T H:

WHEREAS, the Company wish to employ the Executive on the terms and conditions hereinafter set forth; 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:

1.    Employment

The Company agrees to employ the Executive during the Term specified in paragraph 2, and the Executive agrees to accept such employment, upon the terms and conditions hereinafter set forth.

2.    Term

Subject to the provisions contained in Sections 6 and 7, the Executive's employment by the Company shall be for a term (the “Term”) commencing on or about May 29, 2018 or June 4, 2018 and continuing for an indefinite period thereafter unless and until (i) either the Executive shall give to the Company sixty (60) days advance written notice of resignation (a “Notice of Termination”) or (ii) the Company terminates the Executive’s employment with or without “Cause” (as defined herein).  Any Notice of Termination given by the Executive under this Section 2 shall specify the date of termination and the fact that the notice is being delivered pursuant to Section 2 of this Agreement.  The Company shall have the right at any time during such 60-day notice period to relieve the Executive of all or any portion of his offices, duties and responsibilities and to place him on a paid leave-of-absence status.  The date on which the Executive ceases to be employed by the Company, regardless of the reason therefore is referred to in this Agreement as the "Termination Date".

3.    Duties and Responsibilities

(a)    Title.  During the Term, the Executive shall have the position of Senior Vice President, Chief Accounting Officer of the Company.  

(b)    Duties.  The Executive shall report directly to the Company’s Chief Financial Officer (the "MDC Executive"), at such times and in such detail as the MDC Executive shall reasonably require. The Executive shall perform such duties consistent with his position as Senior Vice President, Chief Accounting Officer, or as may be reasonably directed by the Chief Executive Officer of the Company.

1

(c)    Scope of Employment.  The Executive's employment by the Company as described herein shall be full-time and exclusive, and during the Term, the Executive agrees that he will (i) devote all of his business time and attention, his reasonable best efforts, and all his skill and ability to promote the interests of the Company; and (ii) carry out his duties in a competent manner and serve the Company faithfully and diligently under the direction of the MDC Executive.  Notwithstanding the foregoing, the Executive shall be permitted to engage in charitable and civic activities and manage his personal passive investments, provided that such passive investments are not in a company which transacts business with the Company or its affiliates or engages in business competitive with that conducted by the Company (or, if such company does transact business with the Company, or does engage in a competitive business, it is a publicly held corporation and the Executive's participation is limited to owning less than 1% of its outstanding shares), and further provided that such activities (individually or collectively) do not materially interfere with the performance of his duties or responsibilities under this Agreement.

(d)    Office Location.  During the Term, the Executive's services hereunder shall be performed at the offices of the Company in New York, NY, subject to necessary travel requirements to the Company’s partner agency locations in order to carry out his duties in connection with his position hereunder.  

4.    Compensation

(a)Base Salary.  As compensation for his services hereunder, during the Term, the Company shall pay the Executive in accordance with its normal payroll practices, an annualized base salary of $450,000 (“Base Salary”), subject to periodic review by the Human Resources & Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) to determine appropriate increases, if any, in accordance with the Company’s practices and policies for other senior executives.  

(b)Annual Discretionary Bonus.  During the Term, in respect of all calendar years beginning 2018, the Executive shall be eligible to receive an annual discretionary bonus in an amount equal to up to 50% of the then current Base Salary, based upon criteria determined by the MDC Executive and the Compensation Committee, which criteria shall include the Executive’s performance, the overall financial performance of the Company and such other factors as the MDC Executive and the Compensation Committee shall deem reasonable and appropriate (the “Annual Discretionary Bonus”).  The Annual Discretionary Bonus will be paid in accordance with the Company’s normal bonus payment procedures, and may be paid in the form of equity incentive awards and/or subject to retention agreements. The Annual Discretionary Bonus in respect of 2018 may be pro-rated for the Term of your employment.

(c)Restricted Stock Grant.  As soon as practicable following commencement of Executive’s employment with the Company, the Executive shall receive an award of 25,000 restricted shares of the Company’s Class A subordinate voting shares in accordance with and subject to the terms and conditions of a separate restricted stock agreement to be executed and delivered by the Executive and MDC Partners Inc. (the “Initial Stock Grant”).  The shares of stock issued 

2

in connection with the Initial Stock Grant shall be subject to a 3-year cliff vesting condition, subject to accelerated vesting upon termination without Cause.

(d)Signing/Retention Bonus. The Company shall pay Executive a signing bonus in an amount equal to $200,000 (the “Signing Bonus”) within thirty (30) days after commencement of the Term of employment, subject to applicable withholding for federal, state and local taxes.  Notwithstanding the foregoing, in the event that Executive resigns or is terminated by the Company for “Cause” prior to December 31, 2019, then Executive shall immediately pay back to the Company an amount equal to the Signing Bonus. If prior to December 31, 2019, your employment is terminated by the Company without Cause or by Executive for Good Reason, then Executive will not have to repay the Signing Bonus. 

(e)Participation in Equity Incentive Programs.  The Executive shall also be eligible to ongoing participation in all current and future equity and/or cash incentive plans of the Company, including but not limited to potential awards of stock options, stock appreciation rights and/or awards of restricted shares of the Company.

5.    Expenses; Fringe Benefits 

(a)    Expenses.  The Company agrees to pay or to reimburse the Executive for all reasonable, ordinary, necessary and documented business or entertainment expenses incurred during the Term in the performance of his services hereunder in accordance with the policy of the Company as from time to time in effect.  The Executive, as a condition precedent to obtaining such payment or reimbursement, shall provide to the Company any and all statements, bills or receipts evidencing the travel or out-of-pocket expenses for which the Executive seeks payment or reimbursement, and any other information or materials, as the Company may from time to time reasonably require.

(b)Benefit Plans.  During the Term, the Executive and, to the extent eligible, his dependents, shall be eligible to participate in and receive all benefits under any group health plans, welfare benefit plans and programs provided by the Company to its senior executives and, without duplication, its employees generally, subject, however, to the generally applicable eligibility and other provisions of the various plans and programs in effect from time to time.  

(c)    Retirement Plans.  During the Term, the Executive shall be eligible to participate in all retirement plans and programs (including without limitation any profit sharing plan) provided by the Company to its senior executives generally and, without duplication, its employees generally, subject, however, to the generally applicable eligibility and other provisions of the various plans and programs in effect from time to time. 

(d)    Vacation.  The Executive shall be entitled to four weeks of vacation in accordance with the Company's policies, with no right of carry over, to be taken at such times as shall not materially interfere with the Executive's fulfillment of his duties hereunder, and shall be entitled to as many holidays, sick days and personal days as are in accordance with the Company's policy then in effect generally for its employees.

3

6.    Termination

(a)    Termination for Cause.  The Company, by direction of the Compensation Committee, the Board of Directors or the MDC Executive, shall be entitled to terminate the Term and to discharge the Executive for “Cause” effective upon the giving of written notice to the Executive.  For purposes of this Agreement, the term “Cause” shall mean:

(i)    the Executive's failure or refusal to materially perform his duties and responsibilities as set forth in paragraph 3 hereof, or abide by the reasonable directives of the MDC Executive, or the failure of the Executive to devote all of his business time and attention exclusively to the business and affairs of the Company in accordance with the terms hereof, in each case if such failure or refusal is not cured (if curable) within 10 days after written notice thereof to the Executive by the Company;

(ii)    the willful and unauthorized misappropriation of the funds or property of the Company;

(iii)    the use of alcohol or illegal drugs, interfering with the performance of the Executive's obligations under this Agreement, continuing after written warning;

(iv)    the conviction in a court of law of, or entering a plea of guilty or no contest to, any felony or any crime involving moral turpitude, dishonesty or theft;

(v)    the material nonconformance with the Company's policies against racial or sexual discrimination or harassment, which nonconformance is not cured (if curable) within 10 days after written notice to the Executive by the Company;

(vi)    the commission in bad faith by the Executive of any act which materially injures or could reasonably be expected to materially injure the reputation, business or business relationships of the Company;

(vii)    the resignation by the Executive on his own initiative other than for Good Reason; and

(viii)    any breach (not covered by any of the clauses (i) through (vii) above) of paragraphs 8, 9 or 11, if such breach is not cured (if curable) within 20 days after written notice thereof to the Executive by the Company.

Any notice required to be given by the Company pursuant to clause (i), (v) or (viii) above shall specify the nature of the claimed breach and the manner in which the Company requires such breach to be cured (if curable).  In the event that the Executive is purportedly terminated for Cause and it 

4

is finally determined that Cause as defined herein was not present, then such purported termination for Cause shall be deemed a termination without Cause pursuant to paragraph 6(c) and the Executive's rights and remedies will be governed by paragraph 7(b), in full satisfaction and in lieu of any and all other or further remedies the Executive may have under this Agreement.

(b)    Termination without Cause.  The Company, by direction of the Board or the MDC Executive, shall have the right at any time during the Term to terminate the employment of the Executive without Cause by giving written notice to the Executive setting forth a Date of Termination.

(c)    Termination for Death or Disability.  In the event of the Executive's death, the Date of Termination shall be the date of the Executive's death.  In the event the Executive shall be unable to perform his duties hereunder by virtue of illness or physical or mental incapacity or disability (from any cause or causes whatsoever) in substantially the manner and to the extent required hereunder prior to the commencement of such disability and the Executive shall fail to perform such duties for periods aggregating 120 days, whether or not continuous, in any continuous period of 360 days (such causes being herein referred to as “Disability”), the Company shall have the right to terminate the Executive's employment hereunder as at the end of any calendar month during the continuance of such Disability upon at least 30 days' prior written notice to him.

7.    Effect of Termination of Employment.

(a)    Termination by the Company for Cause; by Death or Disability; or pursuant to a Notice of Termination delivered by the Executive pursuant to paragraph 2 above.  In the event of the termination of the employment of the Executive (1) by the Company for Cause; (2) by reason of death or Disability pursuant to paragraph 6(d); or (3) pursuant to a Notice of Termination delivered by the Executive pursuant to paragraph 2 above, the Executive shall be entitled to the following:

(i)    unpaid Base Salary through, and any unpaid reimbursable expenses outstanding as of, the Date of Termination; and

(ii)all benefits, if any, that had accrued to the Executive through the Date of Termination under the plans and programs described in paragraphs 5(b) and (c) above, or any other applicable plans and programs in which he participated as an employee of the Company, in the manner and in accordance with the terms of such plans and programs.

In the event of termination of the employment of Executive in the circumstances described in this paragraph 7(a), except as expressly provided in this paragraph, the Company shall have no further liability to the Executive or the Executive's heirs, beneficiaries or estate for damages, compensation, benefits, severance or other amounts of whatever nature, directly or indirectly, arising out of or otherwise related to this Agreement and the Executive's employment or cessation of employment with the Company.

5

(b)    Termination by the Company without Cause or Resignation for Good Reason.  In the event of termination by the Company without Cause, the Executive shall be entitled to the following payments and benefits:

		
	(i)
	an amount equal to Executive’s Base Salary for a period of six (6) months (the “Severance Amount”). In the event of termination by the Company without Cause commencing on or after January 1, 2021, the Severance Amount shall increase to seven (7) months’ Base Salary, and shall increase by an additional one (1) month for each full calendar year that the Executive is employed thereafter, up to a maximum of nine (9) months Base Salary. The Severance Amount described in this Section 7(b)(i), less applicable withholding of any tax amounts, shall be paid by the Company to the Executive over the applicable severance period;

		
	(ii)
	unpaid Base Salary through, and any unpaid reimbursable expenses outstanding as of, the Date of Termination; 

		
	(iii)
	the Company shall reimburse the Executive for the cost of participation in COBRA health benefits for a period commencing as of the Date of Termination through to the earlier of (A) the six (6) month anniversary of the Date of Termination and (B) the date on which the Executive is eligible to receive coverage and benefits under the same type of plan of a subsequent employer; and

		
	(iv)
	all benefits, if any, that had accrued to the Executive through the Date of Termination under the plans and programs described in paragraphs 5(b) and (c) above, or any other applicable benefit plans and programs in which the Executive participated as an employee of the Company, in the manner and in accordance with the terms of such plans and programs.

In the event of termination of this Agreement in the circumstances described in this paragraph 7(b), except as expressly provided in this paragraph, the Company shall have no further liability to the Executive or the Executive’s heirs, beneficiaries or estate for damages, compensation, benefits, severance or other amounts of whatever nature, directly or indirectly, arising out of or otherwise related to this Agreement and the Executive’s employment or cessation of employment with the Company.

Notwithstanding the foregoing, in the event that Executive obtains any other employment or consulting arrangement following the Date of Termination, he shall promptly notify the Company, and any compensation and benefits paid to Executive therefrom shall reduce the Severance Amount otherwise payable under this paragraph 7(b).  The making of any severance payments and providing the other benefits as provided in this paragraph 7(b) is conditioned upon the Executive signing and not revoking a separation agreement in a form reasonably satisfactory to the Company and Executive (the "Separation Agreement").  In the event the Executive breaches any provisions of the Separation Agreement or the provisions of paragraph 8 of this Agreement, in addition to any other remedies 

6

at law or in equity available to it, the Company may cease making any further payments and providing the other benefits provided for in this paragraph 7(b), without affecting its rights under this Agreement or the Separation Agreement.

(c)    Termination by the Company without Cause following a Change of Control.  If within one (1) year after the closing date of any Change of Control transaction, the Executive’s employment is terminated by the Company without Cause or he resigns for Good Reason, the Severance Amount shall be increased to an amount equal to Executive’s Base Salary for a period of nine (9) months.

For the purposes of this Agreement, a “Change of Control” shall be limited to the closing of a transaction which results in (i) any person(s) or company(ies) acting jointly or in concert owning, directly or indirectly, equity of the Company representing greater than 50% of the voting power of the Company's outstanding securities, or (ii) the Company selling all or substantially all of its assets (in each instance other than any transfer by the Company or any of its affiliates of their respective interest in the Company to another wholly-owned subsidiary of another MDC Group company).

Provided that a Cause event has not occurred and has not been cured (if curable), the Executive shall be entitled to terminate this Agreement and the Term hereunder for Good Reason (as defined below) at any time during the Term by written notice to the Company not more than 10 days after the occurrence of the event constituting such Good Reason.  For purposes of this Agreement, “Good Reason” shall be limited to (i) a breach by the Company of a material provision of this Agreement, which breach remains uncured (if curable) for a period of 10 days after written notice of such breach from the Executive to the Company (such notice to specify the nature of the claimed breach and the manner in which the Executive requires such breach to be cured)); (ii) a material diminution of the Executive’s duties and responsibilities as set forth in paragraph 3, without his prior written consent, which breach remains uncured (if curable) for a period of 10 days after written notice of such breach from the Executive to the Company (such notice to specify the nature of the claimed breach and the manner in which the Executive requires such breach to be cured); (iii) relocation of the Executive’s principal office to a location more than 50 miles outside New York, N.Y.; or (iv) the Company’s failure to pay any compensation as set forth in this Agreement, which action is not reversed within 10 days after written notice of the breach from the Executive to the Company.  In the event that the Executive purportedly terminates his employment for Good Reason and it is determined that Good Reason as defined herein was not present, then such purported termination for Good Reason shall be deemed a termination for Cause pursuant to paragraph 6(a)(vii) and the Executive’s rights and remedies will be governed by paragraph 7(a), in full satisfaction and in lieu of any and all other or further remedies the Executive may have under this Agreement.

8.    Non-Solicitation/Non-Servicing Agreement and Protection of Confidential Information
        
(a)    Non-Solicitation/Non-Servicing.  The parties hereto agree that the covenants given in this paragraph 8 are being given incident to the agreements and transactions described herein, and that such covenants are being given for the benefit of the Company.  Accordingly, the Executive acknowledges (i) that the business and the industry in which the Company competes is 

7

highly competitive; (ii) that as a key executive of the Company he has participated in and will continue to participate in the servicing of current clients and/or the solicitation of prospective clients, through which, among other things, the Executive has obtained and will continue to obtain knowledge of the "know-how" and business practices of the Company, in which matters the Company has a substantial proprietary interest; (iii) that his employment hereunder requires the performance of services which are special, unique, extraordinary and intellectual in character, and his position with the Company places and placed his in a position of confidence and trust with the clients and employees of the Company; and (iv) that his rendering of services to the clients of the Company necessarily required and will continue to require the disclosure to the Executive of confidential information (as defined in paragraph 8(b) hereof) of the Company.  In the course of the Executive's employment with the Company, the Executive has and will continue to develop a personal relationship with the clients of the Company and a knowledge of those clients' affairs and requirements, and the relationship of the Company with its established clientele will therefore be placed in the Executive's hands in confidence and trust.  The Executive consequently agrees that it is a legitimate interest of the Company, and reasonable and necessary for the protection of the confidential information, goodwill and business of the Company, which is valuable to the Company, that the Executive make the covenants contained herein and that the Company would not have entered into this Agreement unless the covenants set forth in this paragraph 8 were contained in this Agreement.  Accordingly, the Executive agrees that during the period that he is employed by the Company and for a period of eighteen (18) months thereafter (such period being referred to as the "Restricted Period"), he shall not, as an individual, employee, consultant, independent contractor, partner, shareholder, or in association with any other person, business or enterprise, except on behalf of the Company, directly or indirectly, and regardless of the reason for his ceasing to be employed by the Company:

(i)    attempt in any manner to solicit or accept from any client business of the type performed by the Company or to persuade any client to cease to do business or to reduce the amount of business which any such client has customarily done or is reasonably expected to do with the Company, whether or not the relationship between the Company and such client was originally established in whole or in part through the Executive’s efforts; or

(ii)    employ as an employee or retain as a consultant any person, firm or entity who is then or at any time during the preceding twelve months was an employee of or exclusive consultant to the Company, or persuade or attempt to persuade any employee of or exclusive consultant to the Company to leave the employ of the Company or to become employed as an employee or retained as a consultant by any person, firm or entity other than the Company; or  

(iii)    render to or for any client any services of the type which are rendered by the Company.

As used in this paragraph 8, the term "Company" shall include any subsidiaries of the Company and the term "client" shall mean (1) anyone who is a client of the Company on the Date of Termination, or if the Executive's employment shall not have terminated, at the time of the alleged 

8

prohibited conduct (any such applicable date being called the "Determination Date"); (2) anyone who was a client of the Company at any time during the one year period immediately preceding the Determination Date; (3) any prospective client to whom the Company had made a new business presentation (or similar offering of services) at any time during the one year period immediately preceding the Date of Termination; and (4) any prospective client to whom the Company made a new business presentation (or similar offering of services) at any time within six months after the Date of Termination (but only if initial discussions between the Company and such prospective client relating to the rendering of services occurred prior to the Date of Termination, and only if the Executive participated in or supervised such discussions).  For purposes of this clause, it is agreed that a general mailing or an incidental contact shall not be deemed a "new business presentation or similar offering of services" or a "discussion". In addition, "client" shall also include any clients of other companies operating within the MDC group of companies to whom the Executive rendered services (including supervisory services) at any time during the six-month period prior to the Determination Date.  In addition, if the client is part of a group of companies which conducts business through more than one entity, division or operating unit, whether or not separately incorporated (a "Client Group"), the term "client" as used herein shall also include each entity, division and operating unit of the Client Group where the same management group of the Client Group has the decision making authority or significant influence with respect to contracting for services of the type rendered by the Company. 

(b)    Confidential Information.  In the course of the Executive's employment with the Company (and its predecessor), he has acquired and will continue to acquire and have access to confidential or proprietary information about the Company and/or its clients, including but not limited to, trade secrets, methods, models, passwords, access to computer files, financial information and records, computer software programs, agreements and/or contracts between the Company and its clients, client contacts, client preferences, creative policies and ideas, advertising campaigns, creative and media materials, graphic design materials, sales promotions and campaigns, sales presentation materials, budgets, practices, concepts, strategies, methods of operation, financial or business projections of the Company and information about or received from clients and other companies with which the Company does business.  The foregoing shall be collectively referred to as "confidential information".  The Executive is aware that the confidential information is not readily available to the public and accordingly, the Executive also agrees that he will not at any time (whether during the Term or after termination of this Agreement), disclose to anyone (other than his counsel in the course of a dispute arising from the alleged disclosure of confidential information or as required by law) any confidential information, or utilize such confidential information for his own benefit, or for the benefit of third parties.  The Executive agrees that the foregoing restrictions shall apply whether or not any such information is marked "confidential" and regardless of the form of the information.  The term "confidential information" does not include information which (i) is or becomes generally available to the public other than by breach of this provision or (ii) the Executive learns from a third party who is not under an obligation of confidence to the Company or a client of the Company.  In the event that the Executive becomes legally required to disclose any confidential information, he will provide the Company with prompt notice thereof so that the Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this paragraph 8(b) to permit a particular disclosure.  In the event that such protective order or other remedy is not obtained, or that the Company waives compliance 

9

with the provisions of this paragraph 8(b) to permit a particular disclosure, the Executive will furnish only that portion of the confidential information which he is legally required to disclose and, at the Company's expense, will cooperate with the efforts of the Company to obtain a protective order or other reliable assurance that confidential treatment will be accorded the confidential information.  The Executive further agrees that all memoranda, disks, files, notes, records or other documents, whether in electronic form or hard copy (collectively, the "material") compiled by him or made available to him during his employment with the Company (whether or not the material constitutes or contains confidential information), and in connection with the performance of his duties hereunder, shall be the property of the Company and shall be delivered to the Company on the termination of the Executive's employment with the Company or at any other time upon request.  Except in connection with the Executive's employment with the Company, the Executive agrees that he will not make or retain copies or excerpts of the material; provided that the Executive shall be entitled to retain his personal files.

(c)    Remedies.  If the Executive commits or threatens to commit a breach of any of the provisions of paragraphs 8(a) or (b), the Company shall have the right to have the provisions of this Agreement specifically enforced by the arbitrator appointed under paragraph 18 or by any court having jurisdiction without being required to post bond or other security and without having to prove the inadequacy of the available remedies at law, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.  In addition, the Company may take all such other actions and remedies available to it under law or in equity and shall be entitled to such damages as it can show it has sustained by reason of such breach.

(d)    Acknowledgements.  The parties acknowledge that (i) the type and periods of restriction imposed in the provisions of paragraphs 8(a) and (b) are fair and reasonable and are reasonably required in order to protect and maintain the proprietary interests of the Company described above, other legitimate business interests and the goodwill associated with the business of the Company; (ii) the time, scope and other provisions of this paragraph 8 have been specifically negotiated by sophisticated commercial parties, represented by legal counsel, and are given as an integral part of the transactions contemplated by this Agreement; and (iii) because of the nature of the business engaged in by the Company and the fact that clients can be and are serviced by the Company wherever they are located, it is impractical and unreasonable to place a geographic limitation on the agreements made by the Executive herein. The Executive specifically acknowledges that his being restricted from soliciting and servicing clients and prospective clients as contemplated by this Agreement will not prevent him from being employed or earning a livelihood in the type of business conducted by the Company.  If any of the covenants contained in paragraphs 8(a) or (b), or any part thereof, is held to be unenforceable by reason of it extending for too great a period of time or over too great a geographic area or by reason of it being too extensive in any other respect, the parties agree (x) such covenant shall be interpreted to extend only over the maximum period of time for which it may be enforceable and/or over the maximum geographic areas as to which it may be enforceable and/or over the maximum extent in all other respects as to which it may be enforceable, all as determined by the court or arbitration panel making such determination and (y) in its reduced form, such covenant shall then be enforceable, but such reduced form of covenant shall only apply with respect to the operation of such covenant in the particular 

10

jurisdiction in or for which such adjudication is made.  Each of the covenants and agreements contained in this paragraph 8 (collectively, the "Protective Covenants") is separate, distinct and severable.  All rights, remedies and benefits expressly provided for in this Agreement are cumulative and are not exclusive of any rights, remedies or benefits provided for by law or in this Agreement, and the exercise of any remedy by a party hereto shall not be deemed an election to the exclusion of any other remedy (any such claim by the other party being hereby waived).  The existence of any claim, demand, action or cause of action of the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of each Protective Covenant.  The unenforceability of any Protective Covenant shall not affect the validity or enforceability of any other Protective Covenant or any other provision or provisions of this Agreement.   

(e)    Notification of Restrictive Covenants.  Prior to accepting employment with any person, firm or entity during the Restricted Period, the Executive shall notify the prospective employer in writing of his obligations pursuant to this paragraph 8 and shall simultaneously provide a copy of such notice to the Company (it being agreed by the Company that such notification required under this paragraph 8(e) shall not be deemed a breach of the confidentiality provisions of this Agreement).

(f)    Tolling.  The temporal duration of the non-solicitation/non-servicing covenants set forth in this Agreement shall not expire, and shall be tolled, during any period in which the Executive is in violation of any of the non-solicitation/non-servicing covenants set forth herein, and all restrictions shall automatically be extended by the period of the Executive's violation of any such restrictions.

9.    Intellectual Property

During the Term, the Executive will disclose to the Company all ideas, inventions and business plans developed by him during such period which relate directly or indirectly to the business of the Company, including without limitation, any design, logo, slogan, advertising campaign or any process, operation, product or improvement which may be patentable or copyrightable. The Executive agrees that all patents, licenses, copyrights, tradenames, trademarks, service marks, planning, marketing and/or creative policies and ideas, advertising campaigns, promotional campaigns, media campaigns, budgets, practices, concepts, strategies, methods of operation, financial or business projections, designs, logos, slogans and business plans developed or created by the Executive in the course of his employment hereunder, either individually or in collaboration with others, will be deemed works for hire and the sole and absolute property of the Company.  The Executive agrees, that at the Company's request and expense, he will take all steps necessary to secure the rights thereto to the Company by patent, copyright or otherwise. 

10.    Enforceability

The failure of any party at any time to require performance by another party of any provision hereunder shall in no way affect the right of that party thereafter to enforce the same, nor 

11

shall it affect any other party's right to enforce the same, or to enforce any of the other provisions in this Agreement; nor shall the waiver by any party of the breach of any provision hereof be taken or held to be a waiver of any subsequent breach of such provision or as a waiver of the provision itself.

11.    Assignment

The Company and the Executive agree that the Company shall have the right to assign this Agreement in connection with any asset assignment of all or substantially all of the Company’s assets, stock sale, merger, consolidation or other corporate reorganization involving the Company and, accordingly, this Agreement shall inure to the benefit of, be binding upon and may be enforced by, any and all successors and such assigns of the Company.  The Company and Executive agree that Executive's rights and obligations under this Agreement are personal to the Executive, and the Executive shall not have the right to assign or otherwise transfer his rights or obligations under this Agreement, and any purported assignment or transfer shall be void and ineffective, provided that the rights of the Executive to receive certain benefits upon death as expressly set forth under paragraph 7 of this Agreement shall inure to the Executive’s estate and heirs. The rights and obligations of the Company hereunder shall be binding upon and run in favor of the successors and assigns of the Company. 

12.    Modification

This Agreement may not be orally canceled, changed, modified or amended, and no cancellation, change, modification or amendment shall be effective or binding, unless in writing and signed by the parties to this Agreement.

13.    Severability; Survival

In the event any provision or portion of this Agreement is determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall nevertheless be binding upon the parties with the same effect as though the invalid or unenforceable part had been severed and deleted or reformed to be enforceable.  The respective rights and obligations of the parties hereunder shall survive the termination of the Executive's employment to the extent necessary to the intended preservation of such rights and obligations.
    
14.    Notice

Any notice, request, instruction or other document to be given hereunder by any party hereto to another party shall be in writing and shall be deemed effective (a) upon personal delivery, if delivered by hand, or (b) three days after the date of deposit in the mails, postage prepaid if mailed by certified or registered mail, or (c) on the next business day, if sent by prepaid overnight courier service or facsimile transmission (if electronically confirmed), and in each case, addressed as follows:

If to the Executive:

12

Vincenzo DiMaggio
[add address]
        
If to the Company:
            
c/o MDC Partners Inc.
745 Fifth Avenue, 19th Floor
New York, NY  10151
Attention:  General Counsel    
Fax: (212) 937-4365

Any party may change the address to which notices are to be sent by giving notice of such change of address to the other party in the manner herein provided for giving notice.

15.    Applicable Law

This Agreement shall be governed by, enforced under, and construed in accordance with the laws of the State of New York, without regard to the conflict of law rules thereof.  

16.    No Conflict

Except as previously disclosed in writing to the Company, the Executive represents and warrants that he is not subject to any agreement, instrument, order, judgment or decree of any kind, or any other restrictive agreement of any character, which would prevent him from entering into this Agreement or which would be breached by the Executive upon his performance of his duties pursuant to this Agreement.

17.    Entire Agreement; Counterparts

This Agreement and the documents referenced herein represent the entire agreement between the Company and the Executive with respect to the employment of the Executive by the Company, and all prior term sheets, agreements, plans and arrangements relating to the employment of the Executive by the Company are nullified and superseded hereby. This Agreement may be executed in two counterparts or by pdf.
    
18.    Withholdings

The Company may withhold from any amounts payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

13

19.    No Strict Construction

The language used in this Agreement will be deemed to be the language chosen by the Company and the Executive to express their mutual intent, and no rule of law or contract interpretation that provides that in the case of ambiguity or uncertainty a provision should be construed against the draftsman will be applied against any party hereto.

*        *        *        *        *

IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the day and year first above written.

                        
MDC PARTNERS INC.

                    
By: _________________________________
      Mitchell Gendel,
General Counsel

_____________________________________
Vincenzo DiMaggio
 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}]]