Document:

cnxr-ex101_7.htm

 

 

 

 
 
Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made and entered into as of January 1, 2017 (the “Effective Date”), by and between Connecture, Inc., a Delaware corporation (the “Company”), and Vincent Estrada, an individual (the “Executive”). Together the Company and the Executive are referred to herein as the “Parties.”

 

 1.EMPLOYMENT TERMS AND DUTIES

1.1 Employment. The Company hereby agrees to employ Executive, and Executive hereby agrees to accept employment by the Company, upon the terms and conditions set forth in this Agreement.

1.2 Duties. Executive shall serve as Chief Financial Officer and Corporate Secretary and shall report directly to the Company’s Chief Executive Officer. Executive shall have the authority, and perform faithfully and diligently the duties customarily associated with his title and office together with such additional duties as may from time to time be assigned by the Board. Subject to the provisions of Section 1.8 below, during the term of Executive’s employment hereunder, Executive shall devote his full working time and his best efforts to the performance of his duties and the furtherance of the interests of the Company and shall not be otherwise employed.

1.3 Term. Subject to the provisions of Section 1.5 below, the term of employment of Executive under this Agreement shall commence on the Effective Date and shall continue until terminated by either party (the “Employment Term”). Upon termination of this Agreement, this Agreement shall expire and have no further effect, except as otherwise provided in Section 4.3 below.

1.4 Compensation and Benefits.

1.4.1 Base Salary. In consideration of the services rendered to the Company hereunder by Executive and Executive’s covenants hereunder and in the Company’s Employment Covenants Agreement, during the Employment Term, the Company shall pay Executive an annualized salary of $300,000 (the “Base Salary”), less statutory and other authorized deductions and withholdings, payable in accordance with the Company’s regular payroll practices.

1.4.2 Bonus Plan. Executive may be entitled to participate in the Company’s employee bonus plans as may be authorized by the Company’s Board of Directors (“Board”) from time to time (any bonus paid pursuant to such plans, the “Bonus”).  For fiscal year 2017 and subsequent fiscal years, Executive’s annual aggregate target Bonus shall be equal to at least 50% of Executive’s then current Base Salary based on the targets and goals established by the compensation committee of the Board (the “Compensation Committee”) or the Board on an annual basis.  The Bonus shall be less statutory and other authorized deductions and withholdings and payable at the time when other management bonuses are paid, but generally no later than April15th of the year following the year in which the Bonus is earned.  Executive shall not be entitled to a Bonus for fiscal 2016. Except as otherwise provided herein, Executive must be an employee at the time that a Bonus is paid to be eligible to receive a Bonus.

1.4.3 Benefits Package; Business Expenses; Accommodations. As an employee of the Company, Executive will be eligible to enroll in the Company’s benefit programs as they are established from time to time. Upon receipt from Executive of supporting receipts to the extent required by applicable income tax regulations and the Company’s reimbursement policies, the Company shall reimburse Executive for out-of-pocket business expenses reasonably incurred by Executive in connection with his employment hereunder.  

 

1.4.4 Equity. Subject to the approval of the Compensation Committee or the Board, upon commencement of Executive’s employment, Executive will be granted stock options to purchase 125,000 shares of the Company’s Common Stock (the “Options”) and restricted stock units representing 125,000 shares of the Company’s Common Stock (the “RSUs”). The Options shall be nonqualified stock options and shall have an exercise price equal to the closing market price of a share of the Company’s Common Stock on the Nasdaq Global Market on the grant date, or the last business day prior to the grant date if such grant date is not a trading day on the Nasdaq Global Market.  The Options shall vest: over a three (3) year period as follows: (a) the first one-third (1/3) of such shares shall vest on the one (1) year anniversary of the Effective Date, and (b) the second one-third (1/3) of such shares shall vest on the two (2) year anniversary of the Effective Date; and (c) the residual shall vest on the three (3) year anniversary of the Effective Date.   The RSUs shall vest over a three (3) year period as follows: (a) the first one-third (1/3) of such shares shall vest on the one (1) year anniversary of the Effective Date, and (b) the second one-third (1/3) of such shares shall vest on the two (2) year 

 

 

 

 

 
 
anniversary of the Effective Date, and (c) the residual of such shares shall vest on the three (3) year anniversary of the Effective Date.  The Options and RSUs are expected to constitute the sole equity incentive granted to Executive during his first three years of employment.  The grant of the Options and the RSUs will each be made in accordance with the Company’s 2014 Equity Incentive Plan (the “Plan”) and standard related documents.  Vesting of the Options and the RSUs will be subject in each case to Executive’s continuous employment with the Company on such dates, except as otherwise set forth herein.  Upon a Change in Control (as defined in the Plan), all unvested shares subject to any outstanding equity grants issued to Executive for which the vesting is time based shall accelerate and vest in full. 

1.5 Termination. Executive’s employment and this Agreement (except as otherwise provided hereunder) shall terminate upon the occurrence of any of the following, at the time set forth therefor (the time of any such termination being the “Termination Date”):

1.5.1 Death or Disability. Immediately upon the death of Executive or a determination by the Company that Executive has ceased to be able to perform the essential functions of his duties, with or without reasonable accommodation, for a period of not less than one hundred eighty (180) days, due to a mental or physical illness or incapacity, unless otherwise required by law (“Disability”) (termination pursuant to this Section 1.5.1 being referred to herein as termination for “Death or Disability”); or

1.5.2 Voluntary Termination. Thirty (30) days following Executive’s written notice to the Company of termination of employment without Good Reason (as defined in Section 1.5.5); provided, however, that the Company may waive all or a portion of the thirty (30) days’ notice and accelerate the effective date of such termination (and the Termination Date) (termination pursuant to this Section 1.5.2 being referred to herein as “Voluntary” termination); or

1.5.3 Termination for Cause. Immediately following notice of termination for Cause given by the Company.  For purposes of this Agreement, “Cause” shall mean (i) Executive’s theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Company documents or records; (ii) Executive’s material failure to abide by the Company’s code of conduct or other policies (including, without limitation, policies relating to confidentiality and reasonable workplace conduct), which failure, to the extent such failure can be cured, is not cured within a reasonable period of time after written notice to Executive; (iii) Executive’s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company (including, without limitation, Executive’s improper use or disclosure of the Company’s confidential or proprietary information); (iv) any intentional act by Executive which has a material detrimental effect on the Company’s reputation or business; (v) Executive’s repeated failure to perform any reasonable assigned duties after written notice from a Participating Company of, and a reasonable opportunity to cure, such failure; (vi) any material breach by Executive of any employment, service, non-disclosure, non-competition, non-solicitation or other similar agreement between Executive and the Company, which breach is not cured pursuant to the terms of such agreement; or (vii) Executive’s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs Executive’s ability to perform his duties with the Company.

1.5.4 Termination Without Cause. Notwithstanding any other provisions contained herein, including, but not limited to Section 1.3 above, fifteen (15) days following notice of termination without Cause given by the Company (termination pursuant to this Section 1.5.4 being referred to herein as termination “Without Cause”).

1.5.5 Resignation for Good Reason. Immediately upon Executive’s resignation for Good Reason as defined and in accordance with the procedures set forth in this Section 1.5.5.  For purposes of this Agreement, “Good Reason” shall occur if (i) the Company, without Executive’s written consent, (a) materially reduces Executive’s then current authority, duties or responsibilities or adversely changes Executive’s job title, (b) materially reduces Executive’s then current base salary, unless substantially all other executive management employees’ base salary is similarly or proportionately reduced, provided that if all other executive management employees’ base salary is similarly or proportionately reduced, a reduction of Executive’s base salary by more than 20% shall be deemed Good Reason, (c) materially changes the geographic location at which Executive must perform services for the Company, (d) materially breaches this Agreement or any other agreement between Executive and the Company and (e) fails to make the Option and  RSU grants provided for herein; and (ii)(1) Executive provides written notice to the Company of any such action within sixty (60) days of the date on which such action first occurs and provides the Company with thirty (30) days to remedy such action (the “Cure Period”); (2) the Company fails to remedy such action within the Cure Period, and (3) Executive resigns within ten (10) days of the expiration of the Cure Period.

1.5.6 Other Remedies. Termination pursuant to this Section 1.5 shall be in addition to and without prejudice to any other right or remedy to which the Parties may be entitled at law, in equity, or under this Agreement.

 

 

 

 

 
 
1.6 Severance and Termination.

1.6.1 Voluntary Termination, Termination for Cause, Termination for Death or Disability. In the case of a termination of Executive’s employment hereunder for Death or Disability in accordance with Section 1.5.1 above, or Executive’s Voluntary termination of employment hereunder in accordance with Section 1.5.2 above, or a termination of Executive’s employment hereunder for Cause in accordance with Section 1.5.3 above, (i) Executive shall not be entitled to receive payment of, and the Company shall have no obligation to pay, any severance or similar compensation attributable to such termination, other than Base Salary earned but unpaid, vested benefits under any employee benefit plan, and any unreimbursed expenses pursuant to Section 1.4.3 hereof incurred by Executive as of the Termination Date, and (ii) the Company’s other obligations under this Agreement shall immediately cease.

1.6.2 Termination Without Cause or Resignation for Good Reason. Subject to the provisions set forth in this Agreement, in the case of a termination of Executive’s employment hereunder Without Cause in accordance with Section 1.5.4 above or a resignation for Good Reason in accordance with Section 1.5.5 above, the Company shall pay Executive the following severance package (“Severance Package”): (i) an amount equivalent to twelve (12) months of Executive’s then Base Salary, subject to the tax withholding specified in Section 1.4.1 above, payable as set forth herein (the “Severance Payment”); (ii) to the extent Executive participates in any medical, prescription drug, dental, vision and any other “group health plan” of the Company immediately prior to Executive’s Termination Date, and provided that Executive timely elects COBRA continuation coverage, the Company shall pay the full cost of  Executive’s COBRA continuation coverage for Executive (and for Executive’s spouse and dependents to the extent participating in such plans immediately prior to the Termination Date) pursuant to Section 4980B of the Internal Revenue Code of 1986, as amended, and Part 6 of Title 1 of the Employee Retirement Income Security Act of 1986, as amended, for a period of up to twelve (12) months from the Termination Date, or when Executive becomes eligible for comparable coverage through a subsequent employer, provided that Executive agrees to notify the Company as soon as he accepts subsequent employment (the “COBRA Continuation”); and (iii) Base Salary earned but unpaid, vested benefits under any employee benefit plan, and any unreimbursed expenses pursuant to Section 1.4.3 hereof incurred by Executive as of the Termination Date subject to the tax withholding specified in Section 1.4.2 above (collectively, the “Accrued Benefits”).  The Company’s obligation to provide Executive with the Severance Payment and COBRA Continuation, is contingent upon Executive’s execution of a general release of claims satisfactory to the Company, with such release becoming effective on or before thirty (30) days following Executive’s Termination Date (“Severance Condition”). Payment of the Severance Payment and COBRA Continuation, if any, will commence on the first payday following the thirtieth (30th) day after Executive’s Termination Date and continue over a twelve-month period in equal installments, with payments made on the Company’s regular paydays. Such release will not affect Executive’s continuing obligations to the Company under the Employment Covenants Agreement (as defined below). The Company’s obligation to pay and Executive’s right to receive the Severance Package set forth herein (other than Accrued Benefits) shall cease in the event of Executive’s material breach of any of his obligations under this Agreement or the Employment Covenants Agreement after the Termination Date.  Payment of the Accrued Benefits shall be made in full on the first payroll date after Executive’s Termination Date in any event.  

 

1.6.3 Continuation of Equity Rights Upon Termination. Notwithstanding any termination of this Agreement, nothing herein shall diminish Executive’s rights and benefits with respect to previously granted equity or equity-related rights in accordance with the terms of the Plan and any related grant agreements.

1.7 Application of Section 409A.

1.7.1 All references in this Agreement, however phrased, to the termination of Executive shall mean, and be deemed to occur where there has been, a “separation from service” within the meaning of the Section 409A Regulations under the Internal Revenue Code with respect to payment of amounts that are deemed deferred compensation subject to the Section 409A Regulations. Furthermore, to the extent that Executive is a “specified employee” within the meaning of the Section 409A Regulations as of the date of Executive’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of Executive’s death following such separation from service, and all such amounts that would, but for this sentence, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.

1.7.2 The Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Internal Revenue Code. The provisions of this Agreement shall be interpreted 

 

 

 

 

 
 
and construed in favor of satisfying any applicable requirements of Section 409A of the Code. However, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement. In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.

1.7.3 Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (1) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (2) the reimbursement of eligible expenses or in-kind benefits shall be made the earliest of (i) the date called for under the Company’s applicable policies, (ii) the time provided by this Agreement, and (iii) the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

1.7.4 For purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

1.8 No Conflict of Interest. In addition to the restrictions set forth in the Employment Covenants Agreement, during Executive’s employment with the Company, Executive shall not engage in any work, paid or unpaid, that creates an actual conflict of interest with Company.  Such work shall include, but is not limited to, directly or indirectly competing with the Company in any way, or acting as an officer, director, executive, consultant, greater than 10% stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in which the Company is now engaged or in which the Company becomes engaged during Executive’s employment with the Company, as may be determined by the Board in its sole discretion.  If the Board believes such a conflict exists during the term of this Agreement, the Board may ask Executive to choose to discontinue the other work or resign employment with the Company, which resignation shall not constitute Good Reason.  In addition, Executive agrees not to refer any client or potential client of the Company to competitors of the Company, without obtaining the Company’s prior written consent, during Executive’s employment.  Notwithstanding the foregoing, Executive may: (i) engage in community, charitable, and educational activities; (ii) manage his personal investments (except to the extent that such investments would create a conflict of interest with the Company); and (iii) with the prior consent of the Board, serve on the board of directors of one (1) additional company, provided that such activities do not conflict or interfere with the performance of Executive’s obligations under this Agreement or conflict with the interests of the Company  In the event of Executive’s actual or threatened breach of this Section 1.8 or the Employment Covenants Agreement, the Company, in addition to all other rights, shall be entitled to an injunction restraining Executive from breaching this Agreement or the Employment Covenants Agreement.  Furthermore, the period of time during which Executive is subject to these restrictions shall be extended for that amount of time he is in breach of this Section 1.8 or the Employment Covenants Agreement.

 

 2.EMPLOYMENT COVENANTS AGREEMENT

As of the Effective Date, Executive shall become a party to the Employment Covenants Agreement, a copy of which is attached hereto as Exhibit A and incorporated herein by this reference (the “Employment Covenants Agreement”). The Employment Covenants Agreement survives the execution and termination of this Agreement and/or the termination of Executive’s employment with the Company.

 

 3.REPRESENTATIONS AND WARRANTIES BY EXECUTIVE

Executive represents and warrants to the Company that (i) this Agreement is valid and binding upon and enforceable against him in accordance with its terms, (ii) Executive is not bound by or subject to any contractual or other obligation that would be violated by his execution or performance of this Agreement, including, but not limited to, any non-competition agreement presently in effect, and (iii) Executive is not subject to any pending or, to Executive’s knowledge, threatened claim, action, judgment, order, or investigation that could adversely affect his ability to perform his obligations under this Agreement or the business reputation of the Company. Executive has not entered into, and agrees that he will not enter into, any agreement either written or oral in conflict herewith.

 

 4.MISCELLANEOUS

 

 

 

 

 
 
4.1 Notices. All notices, requests, and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written receipt or mailed (postage prepaid by certified or registered mail, return receipt requested) or by overnight courier to the parties at the following addresses:

 

If to Executive, to the last known home address that Executive has on file with the Company.

If to the Company, to:

Connecture, Inc.

18500 West Corporate Drive, Suite 250

Brookfield, WI 53045

Attn: Chief Executive Officer

With a copy to:  General Counsel

All such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section 4.1, be deemed given upon delivery, and (ii) if delivered by mail or overnight courier in the manner described above to the address as provided in this Section 4.1, be deemed given upon receipt. Any party from time to time may change its address or other information for the purpose of notices to that party by giving written notice specifying such change to the other parties hereto.

4.2 Entire Agreement. This Agreement, and the attached exhibits, supersede all prior discussions and agreements among the parties with respect to the subject matter hereof, and contain the sole and entire agreement between the parties hereto with respect thereto. 

4.3 Survival. The respective rights and obligations of the parties that require performance following expiration or termination of this Agreement, including but not limited to Sections 1.6.2, 1.7, 2, and 4, shall survive the expiration or termination of this Agreement, the Employment Term and/or Executive’s employment with the Company.

4.4 Waiver. Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such term or condition. No waiver by any party hereto of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by law or otherwise afforded, will be cumulative and not alternative.

4.5 Amendment. This Agreement may be amended, supplemented, or modified only by a written instrument duly executed by or on behalf of each party hereto.

4.6 No Third Party Beneficiary. The terms and provisions of this Agreement are intended solely for the benefit of each party hereto and the Company’s successors and assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon any other person; provided, however, that in the event of Executive’s death or incapacity, all rights and benefits to which Executive would otherwise be entitled shall be paid or provided to his heirs and/or executor or representative as applicable and in accordance with law.

4.7 No Assignment; Binding Effect. This Agreement shall inure to the benefit of any successors or assigns of the Company. Executive shall not be entitled to assign his obligations under this Agreement.

 

4.8 Headings. The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.

4.9 Severability. The Company and Executive intend all provisions of this Agreement to be enforced to the fullest extent permitted by law. Accordingly, if a court of competent jurisdiction determines that the scope and/or operation of any provision of this Agreement is too broad to be enforced as written, the Company and Executive intend that the court should reform such provision to such narrower scope and/or operation as it determines to be enforceable. If, however, any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future law, and not subject to reformation, then (i) such provision shall be fully severable, (ii) this Agreement shall be construed and enforced as if such provision was never a part of this Agreement, and (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by illegal, invalid, or unenforceable provisions or by their severance.

 

 

 

 

 
 
4.10 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WISCONSIN APPLICABLE TO CONTRACTS EXECUTED AND PERFORMED IN SUCH STATE WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.

4.11 Arbitration. In the event of any dispute or claim relating to or arising out of Executive’s employment relationship with the Company, this Agreement, or the termination of Executive’s employment with the Company for any reason, Executive and the Company agree that all disputes shall be fully resolved by confidential, binding arbitration conducted by a single neutral arbitrator in Brookfield, Wisconsin through the American Arbitration Association (“AAA”) pursuant to the AAA’s Employment Arbitration Rules then in effect, which are available online at the AAA’s website at www.adr.org or by requesting a copy from the Human Resources Department. The arbitrator shall permit adequate discovery and is empowered to award all remedies otherwise available in a court of competent jurisdiction and any judgment rendered by the arbitrator may be entered by any court of competent jurisdiction. The arbitrator shall issue an award in writing and state the essential findings and conclusions on which the award is based. To the fullest extent permitted by applicable law, by signing this Agreement, Executive and the Company both waive the right to have any disputes or claims tried before a judge or jury (other than a claim for injunctive relief); provided, however, that the Company shall have the right to seek injunctive relief from the courts if Executive breaches the Employment Covenants Agreement or Section 1.8 of this Agreement. The mutual promise by the Company and Executive to arbitrate any and all disputes between them (other than the Company’s right to seek injunctive relief), rather than litigate them before the courts or other bodies, provides the consideration for this agreement to arbitrate.

4.12 Indemnification. Executive will be covered under the Company’s insurance policies (including reasonable and customary directors and officers (“D&O”) insurance) and, subject to applicable law, will be provided indemnification to the maximum extent permitted by the Company’s bylaws, certificate of incorporation and standard form of indemnification agreement for officers and directors (which the Parties shall sign on the Effective Date), with such insurance coverage and indemnification to be in accordance with the Company’s standard practices for senior executive officers and directors but on terms no less favorable than provided to any other Company senior executive officer or director.  Notwithstanding anything to the contrary herein or in the indemnification agreement between the Parties, if the company has D&O or other insurance that covers the Executive for a matter and any such insurance has a panel counsel requirement for such matter, then Executive will use such panel counsel or other counsel approved by the insurer, unless there is an actual or potential conflict of interest posed by representation by such counsel, or unless and to the extent the Company waives such requirement in writing and which, if requested by Executive, shall not be unreasonably withheld by the Company.

4.14 Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT FOLLOWS]

 

 

 

 

 
 
IN WITNESS WHEREOF, the parties hereto have caused this Employment Agreement to be executed as of the date first written above.

 

	
 
	
 
	
“COMPANY”

	
 
	
 
	
 

	
 
	
 
	
CONNECTURE, INC.

	
 
	
 
	
 

	
 
	
By:  
	
/s/ Jeffery Surges

	
 
	
Name:
	
Jeffery Surges

	
 
	
Title:
	
Chief Executive Officer and President

	
 
	
 
	
 

	
 
	
 
	
“EXECUTIVE”

	
 
	
 
	
 

	
 
	
 
	
VINCENT ESTRADA

	
 
	
 
	
 

	
 
	
 
	
/s/ Vincent Estrada

 

 

 

EXHIBIT A

 

EMPLOYMENT COVENANTS AGREEMENT

 

This EMPLOYMENT COVENANTS AGREEMENT (the “Agreement”) is made this 1st day of January, 2017 (the “Effective Date”), between Connecture, Inc. (the “Company”) and Vincent Estrada (“You” or “Your”) (collectively, the “Parties”).1 

For and in consideration of the Company’s agreement to employ or continue to employ You, You agree to the following terms:

	
1.
	
Acknowledgments.  You acknowledge and agree that:

	
 
	
(a)
	
Your position is a position of trust and responsibility with access to Confidential Information, Trade Secrets, and information concerning Employees and Customers of the Company;

	
 
	
(b)
	
the Trade Secrets and Confidential Information, and the relationship between the Company and each of its Employees and Customers, are valuable assets of the Company which may not be used for any purpose other than the Company’s Business;

	
 
	
(c)
	
the names of Customers are considered Confidential Information of the Business which constitutes valuable, special, and unique property of the Company;

	
 
	
(d)
	
Customer lists and Customer information which have been compiled by the Company represents a material investment of the Company’s time and money;

	
 
	
(e)
	
the Company will invest its time and money in the development of Your skills in the Business; and

	
 
	
(f)
	
the restrictions contained in this Agreement, including, but not limited to, the restrictive covenants set forth in Sections 2 – 6 below, are reasonable and necessary to protect the legitimate business interests of the Company, and they will not impair or infringe upon Your right to work or earn a living when Your employment with the Company ends.

	
2.
	
Trade Secrets and Confidential Information. 

	
 
	
(a)
	
You represent and warrant that: 

	
 
	
(i)
	
You are not subject to any legal or contractual duty or agreement that would prevent or prohibit You from performing Your duties for the Company or complying with this Agreement, and

	
 
	
(ii)
	
You are not in breach of any legal or contractual duty or agreement, including any agreement concerning trade secrets or confidential information, owned by any other person or entity.

	
 
	
(b)
	
You will not:

	
 
	
(i)
	
use, disclose, or reverse engineer the Trade Secrets or the Confidential Information for any purpose other than the Company’s Business, except as authorized in writing by the Company;

	
 
	
(ii)
	
during Your employment with the Company, use, disclose, or reverse engineer (a) any confidential information or trade secrets of any former employer or third party, or (b) any works of authorship developed in whole or in part by You during any former employment or for any other party, unless authorized in writing by the former employer or third party; or

	
 
	
(iii)
	
upon the termination of Your employment for any reason, (a) retain Trade Secrets or Confidential Information, including any copies existing in any form (including electronic form) which are in Your possession or control, or (b) destroy, delete, or alter the Trade Secrets or Confidential Information without the Company’s prior written consent.

	
 
	
(c)
	
The obligations under this Agreement shall:

	
	 

	
11
	
 Unless otherwise indicated, all capitalized terms used in this Agreement are defined in the “Definitions” Section of Attachment A.  Attachment A is incorporated by reference and is included in the definition of “Agreement.” 

 

 

	
 
	
(i)
	
with regard to the Trade Secrets, remain in effect as long as the information constitutes a trade secret under applicable law; and 

 

	
 
	
(ii)
	
with regard to the Confidential Information, remain in effect during the Restricted Period.

 

	
 
	
(d)
	
The confidentiality, property, and proprietary rights protections available in this Agreement are in addition to, and not exclusive of, any and all other rights to which the Company is entitled under federal and state law, including, but not limited to, rights provided under copyright laws, trade secret and confidential information laws, and laws concerning fiduciary duties.

 

	
 
	
(e)
	
Nothing in this Agreement shall be construed to prohibit You from reporting conduct to, providing truthful information to or participating in any investigation or proceeding conducted by any federal or state government agency or self-regulatory organization. You shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

3.Non-Disclosure of Customer Information.  During the Restricted Period, You will not divulge or make accessible to any person or entity (i) the names of Customers, or (ii) any information contained in Customer’s accounts.

4.Non-Solicitation of Customers.  During the Restricted Period, You will not, directly or indirectly, solicit any Customer of the Company for the purpose of selling or providing any products or services competitive with the Business.  The restrictions set forth in this Section 4 apply only to Customers with whom You had Contact.  Nothing in this Section 4 shall be construed to prohibit You from soliciting any Customer of the Company for the purpose of selling or providing any products or services competitive with the Business: (i) to a Customer that explicitly severed its business relationship with the Company unless You, directly or indirectly, caused or encouraged the Customer to serve the relationship; or (ii) which product line or service line the Company no longer offers.

5.Non-Recruit of Employees.  During the Restricted Period, You will not, directly or indirectly, solicit, recruit, or induce any Employee to (i) terminate his or her employment 

relationship with the Company, or (ii) work for any other person or entity engaged in the Business. 

6.Work Product.  Your employment duties may include inventing in areas directly or indirectly related to the Business of the Company or to a line of business that the Company may reasonably be interested in pursuing.  All Work Product shall constitute work made for hire.  If (i) any of the Work Product may not be considered work made for hire, or (ii) ownership of all right, title, and interest in and to the Work Product will not vest exclusively in the Company, then, without further consideration, You hereby assign all presently-existing Work Product to the Company, and do hereby further assign, and automatically assign, all future Work Product to the Company.

The Company will have the right to obtain and hold in its own name copyrights, patents, design registrations and continuations thereof, proprietary database rights, trademarks, rights of publicity, and any other protection available in the Work Product.  At the Company’s request, You agree to perform, during or after Your employment with the Company, any acts to transfer, perfect and defend the Company’s ownership of the Work Product, including, but not limited to: (i) executing all documents (including a formal assignment to the Company) for filing an application or registration for protection of the Work Product (an “Application”), (ii) explaining the nature of the Work Product to persons designated by the Company, (iii) reviewing Applications and other related papers, or (iv) providing any other assistance reasonably required for the orderly prosecution of Applications.

You agree to provide the Company with a written description of any Work Product in which You are involved (solely or jointly with others) and the circumstances surrounding the creation of such Work Product.

7.License. During Your employment and after Your employment with the Company ends, You grant to the Company an irrevocable, nonexclusive, worldwide, royalty-free license to:  (i) make, use, sell, copy, perform, display, distribute, or otherwise utilize copies of the Licensed Materials, (ii) prepare, use and distribute derivative works based upon the Licensed Materials, and (iii) authorize others to do the same.  You shall notify the Company in writing of any Licensed Materials You deliver to the Company.

8.Release.  During Your employment and after Your employment with the Company ends, You consent to the Company’s use of Your image, likeness, voice, or other characteristics in the Company’s products or services. You release the Company from any cause of action which You have or may have arising out of the use, distribution, adaptation, reproduction, broadcast, or exhibition of such characteristics.  You represent that You have obtained, for 

8996829.2 

 

the benefit of the Company, the same release in writing from all third parties whose characteristics are included in the services, materials, computer programs and other deliverables that You provide to the Company.

9.Post-Employment Disclosure. During the Restricted Period, You shall provide a copy of this Agreement to persons and/or entities for whom You work or consult as an owner, partner, joint venturer, employee or independent contractor.  

10.Injunctive Relief. If You breach any portion of this Agreement, You agree that: 

	
 
	
(a)
	
the Company would suffer irreparable harm; 

	
 
	
(b)
	
it would be difficult to determine damages, and money damages alone would be an inadequate remedy for the injuries suffered by the Company;  and

	
 
	
(c)
	
if the Company seeks injunctive relief to enforce this Agreement, You will waive and will not (i) assert any defense that the Company has an adequate remedy at law with respect to the breach, (ii) require that the Company submit proof of the economic value of any Trade Secret or Confidential Information, or (iii) require the Company to post a bond or any other security.  

Nothing contained in this Agreement shall limit the Company’s right to any other remedies at law or in equity.

11.Independent Enforcement.  The covenants set forth in Sections 2 – 6 of this Agreement shall be construed as agreements independent of (i) any other agreements, or (ii) any other provision in this Agreement, and the existence of any claim or cause of action by You against the Company, whether predicated on this Agreement or otherwise, regardless of who was at fault and regardless of any claims that either You or the Company may have against the other, shall not constitute a defense to the enforcement by the Company of the covenants set forth in Sections 2 – 6 of this Agreement.  The Company shall not be barred from enforcing the restrictive covenants set forth in Sections 2 – 6 of this Agreement by reason of any breach of (i) any other part of this Agreement, or (ii) any other agreement with You.

12.At-will Employment.  This Agreement does not create a contract of employment or a contract for benefits.  Your employment relationship with the Company is at-will.  This means that at either Your option or the Company’s option, Your employment may be terminated at any time, with or without cause or notice.

13.Attorneys’ Fees.  In the event of litigation relating to this Agreement, the Company shall, if it is the prevailing party, be awarded all its attorneys’ fees and costs of litigation in addition to all other remedies available at law or in equity.

14.Waiver.  The Company’s failure to enforce any provision of this Agreement shall not act as a waiver of that or any other provision.  The Company’s waiver of any breach of this Agreement shall not act as a waiver of any other breach.

15.Severability; Survival.  The provisions of this Agreement are severable. If any provision is determined to be invalid, illegal, or unenforceable, in whole or in part, the remaining provisions and any partially enforceable provisions shall remain in full force and effect.  This Agreement and the obligations and restrictions set forth herein shall survive the termination of Your employment with the Company.

16.Governing Law.  The laws of the State of Wisconsin shall govern this Agreement.  If Wisconsin’s conflict of law rules would apply another state’s laws, the Parties agree that Wisconsin law shall still govern.

17.No Strict Construction.  If there is a dispute about the language of this Agreement, the fact that one Party drafted the Agreement shall not be used in its interpretation.

18.Entire Agreement.  This Agreement, including Attachment A which is incorporated by reference, constitutes the entire agreement between the Parties concerning the subject matter of this Agreement.  This Agreement supersedes any prior communications, agreements or understandings, whether oral or written, between the Parties relating to the subject matter of this Agreement. 

19.Amendments.  This Agreement may not be amended or modified except in writing signed by both Parties.

20.Successors and Assigns.  This Agreement shall be assignable to, and shall inure to the benefit of, the Company’s successors and assigns, including, without limitation, successors through merger, name change, consolidation, or sale of a majority of the Company’s stock or assets, and shall be binding upon You.  You shall not have the right to assign Your rights or obligations under this Agreement.  The covenants contained in this Agreement shall survive cessation of Your employment with the Company, regardless of who causes the cessation or the reason for the cessation.

-2-

 

21.Consent to Jurisdiction and Venue.  You agree that any claim arising out of or relating to this Agreement shall be brought in a state or federal court of competent jurisdiction in Wisconsin.  You consent to the personal jurisdiction of the state and/or federal courts located in Wisconsin.  You waive (a) any objection to jurisdiction or venue, or (b) any defense claiming lack of jurisdiction or improper venue, in any action brought in such courts.

22.Return of Company Property/Materials.  Upon the termination of Your employment for any reason or upon the Company’s request at any time, You shall immediately return to the Company all of the Company’s property, including, but not limited to, keys, passcards, credit cards, confidential or proprietary lists (including, but not limited to, customer, supplier, licensor, and client lists), rolodexes, tapes, laptop computer, software, computer files, marketing and sales materials, and any other property, record, document, or piece of equipment belonging to the Company.  You will not (i) retain any copies of the Company’s property, including any copies existing in electronic form, which are in 

Your possession or control, or (ii) destroy, delete, or alter any Company property, including, but not limited to, any files stored on a laptop computer, without the Company’s prior written consent.  The obligations contained in this Section shall also apply to any property which belongs to a third party, including, but not limited to, (i) any entity which is affiliated or related to the Company, or (ii) the Company’s customers, licensors, or suppliers.

23.Execution.  This Agreement may be executed in one or more counterparts, including, but not limited to, facsimiles.  Each counterpart shall for all purposes be deemed to be an original, and each counterpart shall constitute this Agreement.

24.Affirmation.  You acknowledge that You have carefully read this Agreement, You know and understand its terms and conditions, and You have had the opportunity to ask the Company any questions You may have had prior to signing this Agreement.

 

 

 

IN WITNESS WHEREOF, the Parties have signed this Agreement as of the Effective Date.

 

 

				
	
Connecture, Inc.
	
 
	
/s/ Vincent Estrada

	
 
	
 
	
Employee Signature

	
By:
	
/s/ Jeffery Surges
	
 
	
 

	
Name:
	
Jeffery Surges
	
 
	
Vincent Estrada

	
Title:
	
Chief Executive Officer and President
	
 
	
Print Name of Employee

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Employee’s Address:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

 

8996829.2 -3-1276192

 

 

 

 
 
ATTACHMENT A

DEFINITIONS

	
 
	
A.
	
“Business” shall mean the business of: (i) developing, marketing, selling, and implementing computer software which enables insurers, third party administrators, and other insurance industry enterprises to automate insurance processes and exchange information through internet-based applications (the “Software”); and (ii) providing (a) maintenance, (b) hosting, and (c) customer and support services, related to the Software.

	
 
	
B.
	
“Confidential Information” means (a) information of the Company, to the extent not considered a Trade Secret under applicable law, that (i) relates to the Business of the Company, (ii) possesses an element of value to the Company, (iii) is not generally known to the Company’s competitors, and (iv) would damage the Company if disclosed, and (b) information of any third party provided to the Company which the Company is obligated to treat as confidential (the “Third Party”), including, but not limited to, information provided to the Company by its licensors, suppliers, or Customers.  Confidential Information includes, but is not limited to, (i) future business plans, (ii) the composition, description, schematic or design of products, future products or equipment of the Company or any Third Party, (iii) communication systems, audio systems, system designs and related documentation, (iv) advertising or marketing plans, (v) information regarding independent contractors, Employees, clients, licensors, suppliers, Customers, or any Third Party, including, but not limited to, Customer lists compiled by the Company, and Customer information compiled by the Company, and (vi) information concerning the Company’s or the Third Parties’ financial structure and methods and procedures of operation.  Confidential Information shall not include any information that (i) is or becomes generally available to the public other than as a result of an unauthorized disclosure, (ii) has been independently developed and disclosed by others without violating this Agreement or the legal rights of any party, or (iii) otherwise enters the public domain through lawful means.  

	
 
	
C.
	
“Contact” means any interaction between You and a Customer which (i) takes place in an effort to establish, maintain, and/or further a business relationship on behalf of the Company, and (ii) occurs during the last eighteen (18) months of Your employment with the Company (or during Your employment if employed less than eighteen (18) months).

	
 
	
D.
	
“Customer” means any person or entity to whom the Company has (i) sold its products or services, or (ii) solicited to sell its products or services.  

	
 
	
E.
	
“Employee” means any person (i) who is employed by the Company at the time Your employment with the Company ends, and (ii) whom you had interaction with during your employment with the Company relating, directly or indirectly, to the performance of Your duties or the person’s duties for the Company.

	
 
	
F.
	
“Licensed Materials” means any materials that You utilize for the benefit of the Company, or deliver to the Company or the Company’s customers, which (i) do not constitute Work Product, (ii) are created by You or of which You are otherwise in lawful possession, and (iii) You may lawfully utilize for the benefit of, or distribute to, the Company or the Company’s customers.

	
 
	
G.
	
“Restricted Period” means the time period during Your employment with the Company, and for twelve (12) months after Your employment with the Company ends.  

	
 
	
H.
	
“Trade Secrets” means information of the Company, and its licensors, suppliers, clients, and Customers, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, a list of actual Customers, clients, licensors, or suppliers, or a list of potential customers, clients, licensors, or suppliers which is not commonly known by or available to the public and which information (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.  

	
 
	
I.
	
“Work Product” means (a) any data, databases, materials, documentation, computer programs, inventions (whether or not patentable), designs, and/or works of authorship, including but not limited to, discoveries, ideas, concepts, properties, formulas, compositions, methods, programs, procedures, systems, techniques, products, improvements, innovations, writings, pictures, audio, video, images of You, and artistic works, and (b) any subject matter protected under patent, copyright, proprietary database, trademark, trade secret, rights of publicity, confidential information, or other property rights, including all worldwide rights therein, that is or was conceived, created or developed in whole or in part by You while employed by the Company and that either (i) is created 

 

 

 

 

 
 

	
 
		
within the scope of Your employment, (ii) is based on, results from, or is suggested by any work performed within the scope of Your employment and is directly or indirectly related to the Business of the Company or a line of business that the Company may reasonably be interested in pursuing, (iii) has been or will be paid for by the Company, or (iv) was created or improved in whole or in part by using the Company’s time, resources, data, facilities, or equipment.Exhibit 10.1

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") by and between SUMMER ENERGY HOLDINGS, INC., a Nevada corporation ("Employer"), and Jaleea P. George ("Employee" and, together with Employer, the "Parties") is entered into and made effective as of January 1, 2017 (the "Effective Date").

A. Employer is the parent company of Summer Energy, LLC, a Texas limited liability company ("Summer LLC" and, collectively with its successors, designees and past, present and future operating companies, divisions, subsidiaries and affiliates, the "Summer Companies").  The Summer Companies through Summer LLC or through its subsidiaries or affiliates, including Employer (each, an "Affiliated Entity") operate in the highly-competitive and rapidly evolving retail electric provider business (the "Business") in Texas (the "Industry") and provide such Services (the "Services") to residential and commercial power customers in Texas.

B. Employee has heretofore been employed by Employer, up to and through the Effective Date.  Effective with this Agreement, Employer desires to employ Employee and Employee desires to be employed by Employer, in such modified capacity, and under the terms and restrictions as set forth herein.

C. Employee understands and acknowledges that, because the Summer Companies may operate the Business and provide Services to customers through and in conjunction with one or more Affiliated Entities, including Employer, Employee (i) may work with employees, customers and suppliers who are not direct employees, customers or suppliers of Employer but who are employees, customers and suppliers of another Affiliated Entity, and (ii) may be exposed to and expected to use confidential information and trade secrets of an Affiliated Entity other than that of Employer in the performance of Employee's duties for Employer.

D. As a result of such employment, Employee will have access to Confidential Information and Trade Secrets (as defined herein).  Employee will gain the ability to influence the goodwill of Employer and other Affiliated Entities with Partners (as defined herein) necessary to the success of the Business.  Employee recognizes that the Confidential Information and Trade Secrets and Partner relationships and goodwill are assets deserving of protection as provided for in the restrictive covenants contained in this Agreement.

NOW, THEREFORE, for and in consideration of Employee's employment with Employer on the terms and conditions set forth herein, and the promises, mutual covenants, and agreements hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employer and Employee, intending to be legally bound, hereby agree and covenant as follows:

1. Employment; Duties.

(a) Term.  Subject to the terms and conditions of this Agreement, Employer agrees to employ Employee, and Employee agrees to be employed by Employer as of the Effective Date pursuant to the terms herein for a period of two (2) years.

(b) Release of Claims.  This Agreement supersedes in its entirety any employment agreement, oral or in writing, or comparable arrangements between Employer, Summer LLC or any Affiliated Entity and Employee in effect prior to the Effective Date.  Employee hereby relinquishes and unconditionally forfeits any claim or entitlement to any severance pay or other post-termination benefits from Employer pursuant to any agreement in effect prior to the Effective Date, and hereby discharges and releases any claims against Employer relating to anything done or omitted to be done with respect to Employee's employment up to the date of this Agreement.

   

(c) Position; Duties.  During the period of Employee's employment hereunder, Employee agrees to serve Employer, and Employer shall employ Employee, in the position listed on Exhibit A, or in such other capacity or capacities as may be determined from time to time by Employer.  If appointed or elected, Employee also may serve as an officer, manager, consultant or agent of one or more Affiliated Entity other than Employer in such capacity or capacities as may be determined from time to time by Employer and Summer LLC.  During the period of Employee's employment with Employer, Employee shall in good faith devote Employee's time, attention, skills and efforts to the business and affairs of Employer.  Employee's duties shall be performed under the direction and supervision of Employer's Board of Directors (the "Board") and may change in order to meet the Company's existing needs at the direction of the Board.  The foregoing shall not be construed as prohibiting Employee from serving on corporate, civic or charitable boards or committees or making personal investments, so long as such activities do not materially interfere with the performance of Employee's obligations to Employer as set forth in this Agreement or as may be determined by Employer from time to time.

(d) Compensation; Benefits.  For all services rendered by Employee under this Agreement, Employee shall be compensated as set forth in Exhibit A.  Employer may withhold from any amounts payable under this Agreement such federal, state and local taxes required to be withheld pursuant to any applicable law or regulation.

(e) Survival of Employee's Obligations After Termination.  Upon the effective date of the termination of Employee's employment with Employer under this Agreement, regardless the date, cause or manner of such termination (the "Termination Date"), Employee's obligations set forth in Sections 3, 4 and 5, below, shall survive and remain in full force and effect to the extent provided in those Sections.

2. Termination of Employment.

(a) Termination by Employer for Cause.  Employer may terminate Employee's employment under this Agreement for "Cause" (as hereinafter defined) or otherwise at will at any time immediately upon written notice, or where applicable, upon Employee's failure to cure the breach as provided below, whereupon Employer shall have no further obligation hereunder to Employee, except for payment of amounts of Base Salary accrued through the Termination Date.  For purposes of this agreement, "Cause" shall mean: (i) the continued willful failure by Employee to substantially perform her duties with Employer, (ii) the willful engaging by Employee in gross misconduct materially and demonstrably injurious to Employer or (iii) Employee's material breach of Section 1, 3, 4 or 5 of this Agreement; provided, that with respect to any breach that is curable by Employee, as determined by Employer in good faith, Employer has provided Employee written notice of the material breach and Employee has not cured such breach, as determined by Employer in good faith, within fifteen (15) days following the date Employer provides such notice.

(b) Termination as a Result of Employee's Death or Disability.  Employee's employment hereunder shall terminate automatically upon Employee's death and may be terminated by Employer upon Employee's Disability (as hereinafter defined).  If Employee's employment hereunder is terminated by reason of Employee's Disability or death, Employee's (or Employee's estate's) right to benefits under this Agreement will terminate as of the date of such termination and all of Employer's obligations hereunder shall immediately cease and terminate, except that Employee or Employee's estate, as the case may be, will be entitled to receive accrued Base Salary and benefits through the Termination Date.  As used herein, "Disability" shall have the meaning set forth in any long-term disability plan in which Employee participates, and in the absence thereof shall mean the determination in good faith by Employer's Board (or comparable governing body) that, due to physical or mental illness, Employee shall have failed to perform her duties on a full-time basis hereunder for one hundred eighty (180) consecutive days and shall not have returned to the performance of her duties hereunder on a full-time basis before the end of such period, and if Disability has occurred termination shall occur within thirty (30) days after written notice of termination is given (which notice may be given before the end of the one hundred eighty (180) day period described above so as to cause termination of employment to occur as early as the last day of such period).

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(c) Termination by Employee for Good Reason or by Employer other than as a Result of Employee's Death or Disability or other than for Cause; Change of Control.

(i) Employee may terminate Employee's employment hereunder for "Good Reason" (as hereinafter defined), if Good Reason exists, upon at least thirty (30) days' prior written notice to Employer, and Employer may terminate Employee's employment hereunder for any reason or for no reason, other than as a result of Employee's death or Disability or for Cause, upon at least thirty (30) days' prior written notice to Employee, in each case with the consequences set forth in this Section 2(c).

(ii) If Employee's employment is terminated by Employee for Good Reason or by Employer for any reason other than Employee's death or Disability or other than for Cause, or if Employee's employment is terminated without Cause following a "Change of Control" (as hereinafter defined), subject to Employee entering into and not revoking a release of claims in favor of Employer and its affiliates pursuant to Section 2(e) below and Employee fully complying with the covenants set forth in Sections 3, 4 and 5, Employee shall be entitled to the following benefits:

(A) Cash severance payments equal in the aggregate to six (6) months of Employee's annual Base Salary at the time of termination, payable in accordance with Employer's customary payroll practices as in effect from time to time.

(B) Continuation of Employee's medical and health insurance benefits for a period equal to the lesser of (i) six (6) months or (ii) the period ending on the date Employee first becomes entitled to medical and health insurance benefits under any plan maintained by any person for whom Employee provides services as an employee or otherwise.

(C) In addition, solely if Employee is terminated without Cause following a "Change of Control," any unvested stock options granted to Employee pursuant to this Agreement shall accelerate and immediately vest.

(iii) For purposes of this Agreement, "Good Reason" shall mean: (A) a material reduction (without Employee's express written consent) in Employee's Base Salary, unless the reduction is made as part of, and is generally consistent with, a general reduction of executive salaries; or (B) Employer's material breach (without Employee's express written consent) of Section 1 of this Agreement; provided, that Employee has provided Employer written notice of the material breach and Employer has not cured such breach within thirty (30) days following the date Employee provides such notice.  If Employer thereafter intentionally repeats the breach it previously cured, such breach shall no longer be deemed curable.

(iv) For purposes of this Agreement, "Change of Control" shall mean (A) the sale, conveyance or other disposition of all or substantially all of Employer's assets as an entirety or substantially as an entirety to any "person" (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), entity or "group" of persons (as defined in Section 13(d) of the Exchange Act) acting in concert; (ii) any "person" becoming the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Employer representing 50% or more of the total voting power represented by Employer's then-outstanding voting securities; or (iii) a merger or consolidation of Employer with any other corporation or other entity, other than a merger or consolidation of Employer with any other corporation or other entity, other than a merger or consolidation that would result in the voting securities of Employer outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its controlling entity) at least 50% of the total voting power represented by the voting securities of Employer, or such surviving entity (or its controlling entity), outstanding immediately after such merger or consolidation, as applicable.

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(d) Termination by Employee other than for Good Reason.  Employee may terminate her employment with Employer other than for Good Reason upon fifteen (15) days' written notice to Employer, after which Employer shall have no further obligation hereunder to Employee, except for payment of amounts of Base Salary and other benefits accrued through the Termination Date.  If Employee so notifies Employer of such termination, Employer shall have the right to accelerate the effective date of such termination to any date after Employer's receipt of such notice, but such acceleration will not be deemed to constitute a termination of Employee's employment by Employer without Cause, and the consequences of such termination will continue to be governed by this subsection (d).

(e) Waiver and Release.  In consideration for and as a condition to the payments and benefits provided and to be provided under this Agreement, Employee agrees that Employee will, within thirty (30) days after the Termination Date, deliver to Employer a fully executed release agreement substantially in a form then used by and agreeable to Employer and which shall fully and irrevocably release and discharge Employer, Summer LLC and the Affiliated Entities and their respective directors, officers, managers, members, shareholders and employees from any and all claims, charges, complaints, liabilities of any kind, known or unknown, owed to Employee, other than any rights Employee may have under the terms of this Agreement that survive such termination of employment and other than any vested rights of Employee under any of Employer's employee benefit plans or programs that, by their terms, survive or are unaffected by such termination of employment.

3. Protection of Confidential Information.

(a) Employee expressly recognizes and acknowledges that in connection with Employee's employment with Employer, Employee will be given access to certain highly-sensitive confidential and proprietary information belonging either to Employer or to the Summer Companies or other parties who may have furnished such information under obligations of confidentiality, relating to and used in the Business or the provision of Services (collectively, "Confidential Information").  Employee expressly recognizes and acknowledges that, unless otherwise generally available to the public, Confidential Information shall include, but not be limited to, the following categories of information and material, regardless of how such information or material may exist from time to time and whether in electronic, print, or other form, including all copies, notes, or other reproductions or replicas thereof, which constitute valuable, special, and unique assets of Employer or its affiliates that have been developed or acquired through substantial investments of time, money, and resources:

(i) any and all information relating to the operation of the Business or the provision of Services, methods of operation, technology, or marketing, including, but not limited to, business plans, processes, strategic plans, forecasts, financial information or data, marketing information or data, research and development, business account lists, customer lists (including customer names and contact information), customer information (including customer preferences, pricing, buying habits and needs and the methods of fulfilling those needs), employee lists (including skills, ability and compensation of employees other than Employee), vendor or supplier lists, licensor or licensee lists, contractor lists, records relating to any intellectual property owned by, controlled, or maintained by any Affiliated Entity related to the operation of the Business or provision of Services, and any and all other records pertaining to the operation of the Business or provision of Services which Employer may, from time to time, designate as confidential or proprietary or that Employee reasonably knows should be treated or has been treated by Employer or its affiliates as confidential or proprietary and is related to the operation of the Business or provision of Services;

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(ii) the specific terms of any agreement or arrangement, whether oral or written, between an Affiliated Entity and any other Affiliated Entity, including Employer, or any licensor, licensee, customer, utility, supplier, vendor, employee, contractor, sub-contractor, government agency, or municipality with which such Affiliated Entity may be associated or affiliated from time to time which relate to the operation of the Business or provision of Services, including, but not limited to, anything of value (including, but not limited, to monetary payments) provided or received by such Affiliated Entity, or the expiration date of any such agreement or arrangement;

(iii) any and all information of a technical or proprietary nature developed by or acquired by any Affiliated Entity or made available to any Affiliated Entity and its employees by any other Affiliated Entity or any licensor, licensee, customer, utility, supplier, vendor, employee, contractor, sub-contractor, government agency, or municipality of any Affiliated Entity, on a confidential basis or protected basis and related to the Businesses or provision of Services, including but not limited to any scientific or technical analyses, ideas, concepts, designs, specifications, requirements, prototypes, techniques, technical data or know-how, formulae, methods, discoveries, improvements, equipment, research and development, and inventions related to the Businesses or provision of Services; and

(iv) excludes information (A) which is in the public domain through no unauthorized act or omission of Employee or (B) which becomes available to Employee on a non-confidential basis from a source other than Employer or its affiliates without breach of such source's confidentiality or non-disclosure obligations to Employer or any of its affiliates.

(b) Employee agrees that Employee shall not disclose any Confidential Information to any third-party not employed by or otherwise expressly associated or affiliated with Employer for any reason or purpose whatsoever and will not use such Confidential Information except on behalf of Employer at any time during Employee's employment with Employer or any other Affiliated Entity, or at any time within two years after the Termination Date.  Employee further agrees to promptly surrender to Employer or any other Affiliated Entity upon request during Employee's employment with Employer and immediately upon the Termination Date, all Confidential Information and any other property of any kind, existing in any tangible, print or electronic form of any Summer Company in Employee's possession or under Employee's control, including all passwords used by Employee to access facilities, networks, or phone systems of any Summer Company.  Employee also expressly agrees that immediately upon the Termination Date, Employee shall cease using any secure website or web portals, e-mail system, or phone system or voicemail service of the Summer Companies.

(c) In addition, during Employee's employment with Employer and at all times after the Termination Date, Employee shall not directly or indirectly disclose any Trade Secret (defined below) to any third-party, and shall not use any Trade Secret, directly or indirectly, for Employee or for others, without the prior written consent of Employer.  For purposes of this Agreement, the term "Trade Secret" means any item of Confidential Information that constitutes a trade secret of Employer or any of the Affiliated Entities under the common law or statutory law of the state of Texas.  The Parties acknowledge and agree that this Agreement is not intended to, and does not, alter either Employer's rights or Employee's obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices.

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(d) It is acknowledged and agreed that any breach or threatened breach of the provisions of this Section 3 would cause irreparable injury to Employer and that money damages would not provide an adequate remedy to Employer.  In the event of a breach or threatened breach by Employee of this Section 3, Employer shall be entitled to an injunction restraining Employee from disclosing any Confidential Information or Trade Secrets, and, further, from accepting any employment with or rendering any services to any such third-party to whom any Confidential Information or Trade Secret has been disclosed or is threatened to be disclosed by Employee.

(e) Nothing contained in this Section 3 shall be construed as prohibiting Employer from pursuing any other equitable or legal remedies for any such breach or threatened breach, including recovery from Employee of any monetary damages that Employer may suffer by reason of any such breach or threatened breach.

4. Restrictive Covenants.  Employee and Employer understand and agree that the purpose of this Section 4 is solely to protect Employer's legitimate business interests, including, but not limited to Confidential Information and Trade Secrets, Partner relationships and goodwill, and the Summer Companies' competitive advantage within the Industry in the operation of the Businesses or provision of Services.  This Section 4 is not intended to impair, nor will it impair, Employee's ability or right to work or earn a living.  Employee and Employer further understand and agree that this Section 4 represents an important element of this Agreement, and is a material inducement to Employer entering into this Agreement, without which Employer would not have entered into this Agreement.

(a) Covenant Not to Compete.  Employee acknowledges that Employee's duties as an executive with Employer will entail involvement with the entire range of Employer's operations across the Industry, and that Employee's extensive familiarity with the Summer Companies' provision of Services, Confidential Information and Trade Secrets justifies a restriction applicable across the entire geographic footprint in which Employer provides Services including, if applicable at a later date, in locations other than the retail electric provider market of Texas.  To the fullest extent permitted by any applicable state law, Employee agrees that during Employee's continuous employment with Employer, and for the period of six (6) months immediately following the Termination Date, Employee shall not, without the prior written consent of Employer, directly or indirectly, obtain or hold a Competitive Position with a Competitor in the Restricted Territory, as these terms are defined herein.

(i) For purposes of this Agreement, a "Competitive Position" means any employment with or service to be performed (whether as owner, member, manager, lender, partner, shareholder, consultant, agent, employee, co-venturer, or otherwise) for a Competitor in which Employee (A) will use or disclose or could reasonably be expected to use or disclose any Confidential Information or Trade Secrets for the purpose of providing, or attempting to provide, such Competitor with a competitive advantage in the Industry or (B) will hold a position, will have duties, or will perform or be expected to perform services for such Competitor, that is or are the same as or substantially similar to the position held by Employee with Employer or those duties or services actually performed by Employee for Employer in connection with the provision of Services by the Summer Companies, or (C) will otherwise engage in the Businesses, or market, sell or provide Services in competition with Employer. 

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(ii) For purposes of this Agreement, "Competitor" means any third-party (A) whose business is the same as or substantially similar to the Business or major segment thereof, or (B) who owns or operates, intends to own or operate, or is preparing to own or operate a subsidiary, affiliate, or business line or business segment whose business is or is expected to be the same as or substantially similar to the Business or major segment thereof.

(iii) For purposes of this Agreement, "Restricted Territory" means: (A) the Texas retail electric provider market (referred to in this Agreement as the "Industry"); and (B) additionally, to the fullest extent permitted by any applicable state law, any additional markets in which Employer provides Services between the Effective Date and the Termination Date.

Employee shall be deemed to be in a Competitive Position with a Competitor in the Restricted Territory if Employee obtains or holds a Competitive Position with a Competitor that conducts its business within the Restricted Territory (and Employee's responsibilities relate to that Competitor's business in the Restricted Territory), even if Employee's residence or principal place of work (other than California) is not within the Restricted Territory.

Notwithstanding the foregoing, Employee may, as a passive investor, own capital stock of a publicly held corporation, which is actively traded in the over-the-counter market or is listed and traded on a national securities exchange, which constitutes or is affiliated with a Competitor, so long as Employee's ownership is not in excess of five percent (5%) of the total outstanding capital stock of the Competitor.

(b) Non-Solicitation / No Interference Provisions.

(i) Business Partners.  Employee understands and agrees that the relationship between the Summer Companies and each of its licensors, licensees, suppliers, vendors, contractors, subcontractors, consultants, customers, and prospective customers related to the Business or the provision of Services (the "Partners") constitutes a valuable asset of the Summer Companies, and may not be misappropriated for Employee's own use or benefit or for the use or benefit of any other third-party.  Accordingly, Employee hereby agrees that during Employee's employment by Employer and for the period of twenty-four (24) months immediately after the Termination Date, Employee shall not, without the prior written consent of Employer, directly or indirectly, on Employee's own behalf or on behalf of any other third-party:

(A) call-on, solicit, divert, take away or attempt to call-on, solicit, divert, or take away any of the Partners (1) with whom or with which Employee had communications on Employer's behalf about the Partner's existing or potential business relationship with any of the Summer Companies with respect to the Businesses or provision of Services; (2) whose business dealings with the Summer Companies are or were managed or supervised by Employee as part of her duties for Employer; or (3) about whom or about which Employee obtained Confidential Information or Trade Secrets solely as a result of Employee's employment with Employer or interaction or association with any other Affiliated Entity; or

(B) interfere or engage in any conduct that would otherwise have the effect of interfering, in any manner with the business relationship between the Summer Companies and any of the Partners, including, but not limited to, urging or inducing, or attempting to urge or induce, any Partner to terminate its relationship with the Summer Companies or to cancel, withdraw, reduce, limit, or modify in any manner such Partner's business or relationship with the Summer Companies.

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(ii) Employees.  Employee understands and agrees that the relationship between the Summer Companies and each of its employees constitutes a valuable asset of the Summer Companies and such assets may not be converted to Employee's own use or benefit or for the use or benefit of any other third-party.  Accordingly, Employee hereby agrees that during Employee's employment with Employer or any other Affiliated Entity and for the period of twenty-four (24) months immediately after the Termination Date, Employee shall not, without Employer's prior written consent, directly or indirectly, solicit or recruit for employment; attempt to solicit or recruit for employment; or attempt to hire or accept as an employee, consultant, contractor, or otherwise, any employee of any Affiliated Entity engaged in the Business or provision of Services; or unlawfully urge, encourage, induce, or attempt to urge, encourage, or induce any employee of any Affiliated Entity engaged in the Business or provision of Services to terminate his or her employment with such Affiliated Entity.

(c) Post-Termination Covenants by Employee.

(i) Upon the termination of Employee's employment hereunder, regardless of (A) the date, cause, or manner of the termination of Employee's employment with Employer, (B) whether such termination occurs with or without Cause or is a result of Employee's resignation, or (C) whether Employer provides severance benefits to Employee under this Agreement, Employee shall resign and does resign from all positions as an officer of the Summer Companies and from any other positions with the Summer Companies, with such resignations to be effective upon the Termination Date.

(ii) From and after the Termination Date, Employee agrees not to make any statements to the Summer Companies' employees, customers, vendors, or suppliers or to any public or media source, whether written or oral, regarding Employee's employment hereunder or termination from Employer's employment, except as may be approved in writing by an executive officer of Employer in advance.  Employee further agrees not to make any statement (including to any media source, or to the Summer Companies' suppliers, customers or employees) or take any action that would disrupt, impair, embarrass, harm or affect adversely the Summer Companies or any of the employees, officers, directors, or customers of the Summer Companies or place the Summer Companies or such individuals in any negative light.

(iii) From and after the Termination Date, Employee agrees to cooperate with and provide assistance to the Summer Companies and its legal counsel in connection with any litigation (including arbitration or administrative hearings) or investigation affecting the Summer Companies, in which, in the reasonable judgment of the Summer Companies' counsel, Employee's assistance or cooperation is needed.  Employee shall, when requested by the Summer Companies, provide truthful testimony or other assistance and shall travel at the Summer Companies' request in order to fulfill this obligation.  In connection with such litigation or investigation, the Summer Companies shall attempt to accommodate Employee's schedule, shall reimburse Employee (unless prohibited by law) for any actual loss of wages in connection therewith, shall provide Employee with reasonable notice in advance of the times in which Employee's cooperation or assistance is needed, and shall reimburse Employee for any reasonable expenses incurred in connection with such matters.

(d) Enforcement of Restrictive Covenants.  Notwithstanding any other provision of this Agreement, in the event of Employee's actual or threatened breach of any provision of this Section 4, Employer shall be entitled to an injunction restraining Employee from such breach or threatened breach, without the requirement of posting any bond or the necessity of proof of actual damage, it being agreed that any breach or threatened breach of these restrictive covenants would cause immediate and irreparable injury to Employer and that money damages would not provide an adequate remedy to Employer.  Nothing herein shall be construed as prohibiting Employer from pursuing any other equitable or legal remedies for such breach or threatened breach, including the recovery of monetary damages from Employee.  The period of any restriction set forth in this Section 4 shall be extended by any period of time that Employee is or has been found to be in breach of any provision in this Section 4.

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(e) Employee Acknowledgement. Employee acknowledges and agrees that:

(i) the restrictive covenants contained in this Agreement constitute material inducement to Employer entering into this Agreement and agreeing to employ Employee on the terms and conditions stated herein;

(ii) the restrictive covenants contained in this Agreement are reasonable in time, territory, and scope, and in all other respects;

(iii) should any part or provision of any covenant be held invalid, void, or unenforceable in any court of competent jurisdiction, such invalidity, voidness, or unenforceability shall not render invalid, void, or unenforceable any other part or provision of this Agreement; and

(iv) if any portion of the foregoing provisions is found to be invalid or unenforceable by a court of competent jurisdiction because its duration, territory, definition of activities, or definition of information covered is considered to be invalid or unreasonable in scope, the invalid or unreasonable terms shall be redefined to carry out Employer's and Employee's intent in agreeing to these restrictive covenants.

These restrictive covenants shall be construed as agreements independent of any other provision in this Agreement and the existence of any claim or cause of action of Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of these restrictive covenants.

5. Employer's Rights to Inventions and Other Intellectual Property.

(a) Employee hereby assigns to Employer all of Employee's rights, title, and interest (including, but not limited to all patent, trademarks, copyright, and trade secret rights) in and to all Work Product (as defined below) prepared or developed by Employee, made or conceived in whole or in part by Employee within the scope of Employee's employment by Employer, or that involve the use of Confidential Information or Trade Secrets within six (6) months thereafter.  Employee further acknowledges and agrees that all copyrightable Work Product prepared by Employee within the scope of Employee's employment by Employer are "works made for hire" and, consequently, that Employer owns all copyrights thereto.

(b) Employee represents and warrants to Employer that all work that Employee performs for or has performed for Employer or any other Affiliated Entity, and all Work Product that Employee produces, which includes, but is not limited to, software, copyrights, trademarks, domain names, domain name registrations, documentation, memoranda, ideas, designs, inventions, processes, new developments or improvements, and algorithms ("Work Product"), will not knowingly infringe upon or violate any patent, copyright, trade secret, or other property right of Employee's former employers or of any other third party.  Employee will not disclose to Employer or to the Summer Companies, or use in any of Employee's Work Product, any confidential or proprietary information belonging to others, unless both the owner thereof and Employer have consented.

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(c) Notwithstanding the other provisions of this Section 5, Employee shall not be required to assign, transfer, or convey to Employer any of the rights, title, and interest Employee may have in any Work Product that Employee invents, discovers, originates, makes, or conceives during Employee's employment by Employer if and only if (i) no equipment, supplies, facilities, Confidential Information, or Trade Secrets are used in the creation of the Work Product, (ii) the Work Product was developed entirely on Employee's own time, (iii) the Work Product does not relate directly to the Business or to the Summer Companies' actual or demonstrably anticipated research or development, and (iv) the Work Product does not result in any way from any work performed by Employee for Employer.

6. Dispute Resolution.  All disputes and controversies arising out of or in connection with this Agreement, Employee's employment with the Employer or any Summer Company, or the transactions contemplated hereby shall be resolved exclusively by the state and federal courts located in the County of Harris, in the State of Texas, and each party hereto agrees to submit to the jurisdiction of said courts and agrees that venue shall lie exclusively with such courts.  Each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which such party may raise now, or hereafter have, to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum.  Each party agrees that, to the fullest extent permitted by applicable law, a final judgment in any such suit, action, or proceeding brought in such a court shall be conclusive and binding upon such party, and may be enforced in any court of the jurisdiction in which such party is or may be subject by a suit upon such judgment.

7. No Conflict.  Employee represents and warrants that Employee 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 Employee from entering into this Agreement or would conflict with the performance of Employee's duties pursuant to this Agreement.  Employee represents and warrants that Employee will not engage in any activity, which would conflict with the performance of Employee's duties pursuant to this Agreement.

8. Notices.  Any notice, requests, demands and other communications to be given to a party in connection with this Agreement shall be in writing addressed to such party in person or at such party's "Notice Address," which shall initially be as set forth below:

If to Employer:

SUMMER ENERGY HOLDINGS, INC.

800 Bering Drive, Suite 260

Houston, Texas 77057

Attn:  Board of Directors

with a copy to (which shall not constitute notice):

Kirton McConkie, PC

50 E. South Temple

Salt Lake City, Utah 84111

 Attn: Alexander N. Pearson, Esq.

		If to Employee:	[___________]

[address on file with Employer]

A party's Notice Address may be changed or supplemented from time to time by such party by notice thereof to the other party as herein provided.  Any such notice shall be deemed effectively given to and received by a party on the first to occur of (a) the date on which such notice is actually delivered (whether by mail, courier, hand delivery, electronic or facsimile transmission or otherwise) to such party's Notice Address and addressed to such party, if such delivery occurs on a business day, or if such delivery occurs on a day which is not a business day, then on the next business day after the date of such delivery, (b) upon personal delivery to the party to be notified, or (c) the date on which such notice is actually received by such party (or, in the case of a party that is not an individual, actually received by the individual designated in the Notice Address of such party).  For purposes of the preceding sentence, a "business day" is any day other than a Saturday, Sunday or U.S. federal public legal holiday.

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9. Miscellaneous.

(a) Waiver of Breach.  The waiver by either Party of a breach or violation of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any subsequent breach of the same or other provision hereof.  The failure of either Party to insist, in any one or more instances, upon performance of any of the terms, conditions, or restrictive covenants contained in this Agreement shall not be construed as a waiver or a relinquishment of any right granted hereunder or of the future performance of any such term or condition, but the obligations of each Party with respect thereto shall continue in full force and effect.

(b) Severability.  Any provision of this Agreement that is determined to be invalid or unenforceable by any court of competent jurisdiction will not affect the validity or enforceability of (i) any other provision hereof or (ii) the invalid or unenforceable provision in any other situation or in any other jurisdiction. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

(c) Assignability.  Except as otherwise provided herein, this Agreement shall inure to the benefit of and shall be binding upon Employee, his or her executor, administrators, heirs, and personal representatives and upon Employer and its successors and assigns.  The rights, obligations, and duties of Employee hereunder may be assigned by Employer to any successor or assign of Employer, and such successor or assign is expressly authorized to enforce all the terms and provisions of this Agreement, including without limitation the terms and provisions of Sections 3, 4 and 5 hereof.  Employee's obligations under this Agreement shall not be assignable by Employee.

(d) Choice of Law.  This Agreement shall be governed by the laws of the State of Texas without regard to its choice of law rules.  

(e) Amendments; Entire Agreement.  This Agreement (i) constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement and (ii) supersedes all prior and contemporaneous agreements (whether written or oral and whether express or implied) between the Parties to the extent related to the subject matter of this Agreement.  No amendment of any provision of this Agreement will be valid unless the amendment is in writing and signed by Employer and Employee.  Without limiting the generality of the foregoing, the obligations under this Agreement with respect to any termination of employment of Employee, for whatever reason, supersede any severance or related obligations of Employer in any policy, plan or practice of Employer or any agreement between Employee and Employer.

(f) Headings.  Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

(g) Counterparts.  This Agreement may be executed by the Parties in multiple counterparts and shall be effective as of the Effective Date when each party shall have executed and delivered a counterpart hereof, whether or not the same counterpart is executed and delivered by each Party, and subject to the occurrence of the Closing.  When so executed and delivered, each such counterpart shall be deemed an original and all such counterparts shall be deemed one and the same document.  Transmission of images of signed signature pages by facsimile, e-mail or other electronic means shall have the same effect as the delivery in person of manually signed documents.

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(h) Compliance with Section 409A.  This Agreement is intended to comply with Section 409A of Internal Revenue Code of 1986, as amended ("Section 409A"), to the extent applicable.  Notwithstanding any provision herein to the contrary, this Agreement shall be interpreted, operated and administered consistent with this intent.  Each separate installment under this Agreement shall be treated as a separate payment for purposes of determining whether such payment is subject to or exempt from compliance with the requirements of Section 409A.  In addition, in the event that Employee is a "specified employee" within the meaning of Section 409A (as determined in accordance with the methodology established by Employer as in effect on the date of termination of Employee's employment hereunder), any payment or benefits hereunder that are nonqualified deferred compensation subject to the requirements of Section 409A shall be provided to Employee no earlier than six (6) months after the date of Employee's "separation from service" within the meaning of Section 409A.

[signatures follow on next page]

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IN WITNESS WHEREOF, Employer has caused this Employment Agreement to be executed by its duly authorized officer, and Employee has hereunto signed this Agreement, as of the Effective Date.

"Employer":

SUMMER ENERGY HOLDINGS, INC.

By: /s/ Neil M. Leibman

Name: /s/ Neil M. Leibman

Title: CEO

"Employee":

/s/ Jaleea P. George

 Jaleea P. George

 

EXHIBIT A

Employee: Jaleea P. George

Effective Date of Employment:  January 1, 2017

Position: Chief Financial Officer, Secretary and Treasurer 

Compensation and Benefits:

	1.	Base Salary.  Employer will pay to Employee a base salary at an annual rate of $175,000 for the calendar year 2017, which will be increased to $185,000 for the calendar year 2018 (as adjusted, the "Base Salary"), payable in accordance with Employer's customary payroll practices as in effect from time to time.  The Base Salary shall be reviewed in a manner consistent with Employer's compensation program.

	2.	Bonuses; Additional Compensation.  Employee may be eligible to receive bonuses and to participate in incentive compensation plans of Employer in accordance with any plan or decision that the Board, or any committee or other person authorized by the Board, may in its sole discretion determine from time to time.

	3.	Reimbursement of Expenses.  Employee shall be paid or reimbursed by Employer, in accordance with and subject to Employer's general expense reimbursement policies and practices and Employer's receipt of evidence of such expenses reasonably satisfactory to Employer, for all reasonable travel and other business expenses incurred by Employee in performing her obligations under this Agreement.  Further, the Employer will pay for a mobile phone and mobile telephone usage charges on behalf of Employee and will pay Employee's expenses related to her professional dues and continuing education expenses.

	4.	Benefits.  Employee shall have four (4) weeks of paid vacation annually throughout the term of this Agreement.  In addition, Employee shall be eligible to participate in Employer's medical, vision and dental insurance programs, 401(k), and other employee benefit or welfare plan, program, or arrangement that Employer has or may from time to time establish or sponsor for the benefit of Employer's employees, upon Employee meeting any qualifications for participation in such plan(s), program(s), or arrangement(s).  Employer will pay on behalf of Employee 100% of the health insurance premiums for Employee.

	5.	Incentive Compensation.

		o	Employee shall be granted two options to purchase shares of Employer's common stock, as follows:

		§	Employee shall be granted an option to purchase 85,000 shares of Employer's common stock, with a strike price of $2.50 per share on or about January 1, 2017, which vests five (5) years from the date of grant, provided Employee remains employed by Employer.  Such option will be granted pursuant to the terms and conditions of a Stock Option Grant Agreement and the Employer's 2015 Stock Option and Stock Award Plan.

		§	Employee shall be granted an option to purchase 85,000 shares of Employer's common stock on or about January 1, 2018, with a strike price which is the greater of (i) the fair market value of a share of stock on the date of grant or (ii) $2.50 per share, which vests five (5) years from the date of grant, provided Employee remains employed by Employer.  Such option will be granted pursuant to the terms and conditions of a Stock Option Grant Agreement and the Employer's 2015 Stock Option and Stock Award Plan.

		o	Beginning on and measured from the Effective Date, for calendar year 2017, Employee will be granted a fully-vested option to purchase 9,000 shares of Employer's common stock each calendar quarter, provided Summer LLC's average quarterly sales volume exceeds 15,000,000 KWh for such quarter and new sales volume, pursuant to Employer's internal energy schedule, exceeds $0.002 for such quarter (specifically, EBITDA after Interest Expense divided by Total Kwh Delivered after losses.  Provided such metrics were met for a particular quarter, Employer will grant said options as promptly as possible following the end of such fiscal quarter with a strike price equal to the greater of (i) fair market value of a share of stock on the date of grant or (ii) $2.50 per share.  Such option will be granted pursuant to the terms and conditions of a Stock Option Grant Agreement and the Employer's 2015 Stock Option and Stock Award Plan.

 

 

		o	Additional options may be granted by Employer for calendar year 2018 based on metrics determined by the Board on or before January 1, 2018.

Restricted Territory:

Pursuant to Section 4(a)(iii)(A), Employee is restricted from competing with Employer in the following markets, in which Employer is providing Services or is presently qualified to do business, as of the Effective Date:

Texas Retail Electric Provider market

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