Document:

Exhibit 10.3

CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE
OFFICER & PRESIDENT AGREEMENT

 

 

This CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER
AND PRESIDENT AGREEMENT is made effective as March 1, 2022, (the “Effective Date”) by and between
B2Digital, Incorporated, a Delaware corporation (the “Company”), and Greg P. Bell (the “COBCEO”).

 

RECITALS

 

A.                
Company desires to retain the services of COBCEO to serve on the Company’s Board (the “Board”), as the Chairman
of The Board, Chief Executive Officer and President (the, CEO) of the Company. COBCEO desires to serve as the Chainman of the Board and
the CEO of the Company, upon the following terms and conditions.

 

B.                 
Company has spent significant time, effort, and money to develop certain Proprietary Information (as defined below), which
Company considers vital to its business.

 

C.                
The Proprietary Information may necessarily be communicated to or received by COBCEO in the course of serving on the Board
and as CEO and Company desires to retain the services of COBCEO, only if, in doing so, it can protect its Proprietary Information and
goodwill.

 

 

AGREEMENT

 

NOW, THEREFORE, the parties hereto hereby agree as
follows:

 

1.                  
Term. The term of this Agreement (the “Term”) shall be the period commencing on the Effective Date
and the COBCCEO can not be removed from his COBCEO position without 90% of the votes of all Stockholders of B2 Digital approving the termination,
unless by reason of legal incapacity as determined by a court of competent jurisdiction in Nevada, and in such event, such removal shall
only be until capacity has been regained, or except by reason of the death. The director can terminate this agreement upon three (3) months’
prior written notice to the Company, whereupon this Agreement shall terminate except that the provisions set forth in Sections 2.b, 4
and 6 of this Agreement shall survive such termination

 

2.                  
Position, Duties, Responsibilities.

 

a.                  
Duties. COBCEO shall perform those service (the “Services”) as may be reasonably requested by the Company
from time to time, including but not limited to the Services described on Exhibit A attached hereto. COBCEO shall devote his commercially
reasonable efforts and attention to the performance of the Services for the Company on a timely basis. COBCEO shall also make himself
available to answer questions, provide advice and provide Services to the Company upon reasonable request and notice from the Company.
COBCEO will perform the Services faithfully, diligently and to the best of his skill and ability.

 

b.                  
COBCEO Representations and Agreements. 

 

		(i)	COBCEO hereby agrees that he shall be solely
responsible for the impact of any and all taxes arising out of the COBCEO’s receipt of any compensation payable under this Agreement.

 

		(ii)	COBCEO hereby represents, warrants and covenants
that COBCEO has the right, power and authority to enter into this Agreement and that neither the execution nor delivery of this Agreement,
nor the performance of the Services by COBCEO, will conflict with or result in a breach of the terms, conditions or provisions of, or
constitute a default under, any contract, covenant or instrument under which COBCEO is now, or hereafter becomes, obligated. 

 

 

 

 

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3.                  
Compensation, Benefits, Expenses.

 

a.                  
Compensation. As full and complete consideration for the Services to be rendered hereunder, the Company shall pay COBCEO
the Compensation described on Exhibit A attached hereto.

 

b.                  
Reimbursement of Expenses. Company shall promptly reimburse COBCEO for any reasonable costs and expenses incurred by
COBCEO in connection with any Services specifically requested by Company and actually performed by COBCEO pursuant to the terms of this
Agreement. Each such expenditure or cost shall be reimbursed only if: (i) with respect to costs and expenses in excess of $100, individually,
and (ii) with respect to costs and expenses of less than $100, individually, COBCEO furnishes to Company adequate records and other documents
reasonably acceptable to Company evidencing such expense or cost.

 

4.                  
Proprietary Information; Work Product; Non-Disclosure.

 

a.                  
Defined. Company has conceived, developed and owns, and continues to conceive and develop, certain property rights and
information, including but not limited to its business plans and objectives, client and customer information, financial projections, marketing
plans, marketing materials, logos, and designs, and technical data, inventions, processes, know-how, algorithms, formulae, franchises,
database’s, computer programs, computer software, user interfaces, source codes, object codes, architectures and structures, display
screens, layouts, development tools and instructions, templates, and other trade secrets, intangible assets and industrial or proprietary
property rights which may or may not be related directly or indirectly to Company’s software business and all documentation, media
or other tangible embodiment of or relating to any of the foregoing and all proprietary rights therein of Company (all of which are hereinafter
referred to as the “Proprietary Information”). Although certain information may be generally known in the relevant industry,
the fact that Company uses it may not be so known. In such instance, the knowledge that Company uses the information would comprise Proprietary
Information. Furthermore, the fact that various fragments of information or data may be generally known in the relevant industry does
not mean that the manner in which Company combines them, and the results obtained thereby, are known. In such instance, that would also
comprise Proprietary Information.

 

b.                  
General Restrictions on Use. COBCEO agrees to hold all Proprietary Information in confidence and not to, directly or
indirectly, disclose, use, copy, publish, summarize, or remove from Company’s premises any Proprietary Information (or remove from
the premises any other property of Company), except to the extent authorized and necessary to carry out COBCEO’s responsibilities
under this Agreement. Notwithstanding the foregoing, such restrictions shall not apply to: (x) information which COBCEO can show was rightfully
in COBCEO’s possession at the time of disclosure by Company; (y) information which COBCEO can show was received from a third party
who lawfully developed the information independently of Company or obtained such information from Company under conditions which did not
require that it be held in confidence; or (z) information which, at the time of disclosure, is generally available to the public.

 

c.                  
Ownership of Work Product. All Work Product (as defined below) shall belong exclusively to Company and its designees.
If by operation of law, any of the Work Product, including all related intellectual property rights, is not owned in its entirety by Company
automatically upon creation thereof, then COBCEO agrees to assign, and hereby assigns, to Company and its designees the ownership of such
Work Product, including all related intellectual property rights. “Work Product” shall mean any writings (including excel,
power point, emails, etc.), programming, documentation, data compilations, reports, and any other media, materials, or other objects produced
as a result of COBCEO’s work or delivered by COBCEO in the course of performing that work.

 

 

 

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d.                  
Further Assurances. COBCEO agrees to take sure further actions and execute and deliver such further agreements
and other instruments as Company may reasonably request to give effect to this Section 4.

 

e.                  
Return of Proprietary Information. Upon termination of this Agreement, COBCEO shall upon request by the Company promptly
deliver to Company at Company’s sole cost and expense, all Proprietary Information, and all other materials in its possession or
under its control relating to the Proprietary Information and/or Services, as well as all other property belonging to Company which is
then in COBCEO’s possession or under its control. Notwithstanding the foregoing, COBCEO shall retain ownership of all works owned
by COBCEO prior to commencing Services for Company hereunder, subject to Company’s nonexclusive, perpetual, paid-up right and license
to use such works in connection with its use of the Services and any Work Product.

 

f.                   
Remedies/Additional Confidentiality Agreements. Nothing in this Section 4 is intended to limit any remedy of Company
under applicable state or federal law. At the request of Company, COBCEO shall also execute Company’s standard “Confidentiality
Agreement” or similarly named agreement as such agreement is currently applied to and entered into by Company’s most recent
employees.

 

5.                  
Non-Compete. During the Term, COBCEO shall not compete directly with the Company. During the period that is six (6)
months after the termination of this Agreement, COBCEO shall provide the Company with written notice any time that COBCEO provides any
services, as an employee, consultant or otherwise, to any person, company or entity that competes directly with the Company. Notwithstanding
anything to the contrary contained herein.

 

6.                  
Miscellaneous.

 

a.                  
Notices. All notices required under this Agreement shall be deemed to have been given or made for all purposes upon
receipt of such written notice or communication. Notices to each party shall be sent to the address set forth below the party’s
signature on the signature page of this Agreement. Either party hereto may change the address to which such communications are to be directed
by giving written notice to the other party hereto of such change.

 

b.                  
Entire Agreement. This Agreement and any documents attached hereto as exhibits constitute the entire agreement and understanding
between the parties with respect to the subject matter herein and therein, and supersede and replace any and all prior agreements and
understandings, whether oral or written with respect to such matters. The provisions of this Agreement may be waived, altered, amended
or replaced in whole or in part only upon the written consent of both parties to this Agreement.

 

c.                  
Severability, Enforcement. If, for any reason, any provision of this Agreement shall be determined to be invalid or
inoperative, the validity and effect of the other provisions herein shall not be affected thereby, provided that no such severability
shall be effective if it causes a material detriment to any party.

 

d.                  
Governing Law. The validity, interpretation, enforceability, and performance of this Agreement shall be governed by
and construed in accordance with the laws of the State of Florida, without regard to its conflict of law rules that would require the
application of the laws of any other jurisdiction. Venue for any and all disputes arising out of this Agreement shall be the state and
Federal courts sitting in the City of Tampa, Florida.

 

e.                  
Injunctive Relief. The parties agree that in the event of any breach or threatened breach of any of the covenants in
Section 4, the damage or imminent damage to the value and the goodwill of Company’s business will be irreparable and extremely difficult
to estimate, making any remedy at law or in damages inadequate. Accordingly, the parties agree that Company shall be entitled to injunctive
relief against COBCEO in the event of any breach or threatened breach of any such provisions by COBCEO, in addition to any other relief
(including damages) available to Company under this Agreement or under applicable state or Federal law.

 

 

 

 

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f.                   
Publicity. The Company shall have the right to use the name, biography and picture of COBCEO on the Company’s
website, marketing and advertising materials.

 

g.                  
Counterparts. This Agreement may be executed in two or more counterparts each of which shall be deemed
an original, but all of which shall together constitute one and the same instrument. In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

h.                  
Severability. The holding of any provision of this Agreement to be invalid or unenforceable by a court of competent
jurisdiction shall not affect any other provision of this Agreement, which shall remain in full force and effect. If any provision of
this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or
in part, such provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable
law and the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable
to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other covenant or provision
unless so expressed herein.

 

[Signature page follows.]

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, each party hereto has duly executed
this Agreement as of the Effective

Date.

 

 

	B2DIGITAL, INCORPORATED

	COBCEO
	 	 
	 	 
	Signature: /s/ Paul LaBarre                	Signature:
/s/ Greg P. Bell        
	Name: Paul LaBarre	Name: Greg P. Bell
	Title: Director	Address: 4522 West Village Dr.
	Date: February 24, 2022	Tampa, Florida 33624
	 	 
	 	 
	Signature: /s/ Andrew Georgens         	 
	Name: Andrew Georgens	 
	Title: Director	 
	Date: February 24, 2022	 
	 	 
	 	 
	Signature: /s/ Darryl Metz                   	 
	Name: Darryl Metz	 
	Title: Director	 
	Date: February 24, 2022	 

 

 

 

 

 

 

 

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Exhibit A

 

Services.

 

As the COBCEO, you shall:

 

		v	Call and Manage Board Meetings As needed by the Company 
		v	Participate in Board Meetings and calls as requested by “Company”
		v	Perform the duties of CEO of the Company as per industry standards 
		v	Operate all matters of the Company

 

Compensation.

 

		A.	Management Time

The Company shall pay to Greg
P. Bell or his designee a salary of $15,000 per month.

		B.	The Company shall file all paperwork with the State of Delaware to make the Companies
Class B Stock to make the Conversion Multiplier of the 40,000,000 Class B shares to convert to Common Shares equal to 8 and make the Voting
Rights multiplier 1to 20.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6HTML Editor

Exhibit 10.1

 

 

HOME FEDERAL BANK

 

Loan Officer Incentive Plan (LOIP)

 

 

Participant: ____________________________

 

 

 

 

 

 

 

 

Approved and adopted on September 26, 2022.

 

 

 

 

 

 

 

HOME FEDERAL BANK

 

Loan Officer Incentive Plan (LOIP) Description

 

 

I. Plan Purpose -- The LOIP is an annual, cash-based variable incentive compensation plan. It is specifically designed to encourage selected Commercial Loan Officers (CLO) to produce results that enable the Bank to reach targeted levels of financial performance for the fiscal year. The LOIP provides participants with an opportunity to earn variable rewards that are contingent on (i) the net interest income (interest income less interest expense) produced from the CLO’s identified loan portfolios; and (ii) the net income (interest income plus 1st year fee income, less interest expense) from the CLO’s new loans originated during the performance period (loan growth).

 

The President and CEO will use the LOIP as a part of his overall management strategy to provide direction and encouragement to participants. The LOIP will help control the escalation in fixed compensation costs and provide participants with an opportunity to enhance their overall level of compensation. This should better enable the Bank to attract, motivate and retain the kinds of Loan Officers needed to ensure financial success. It should also create incremental shareholder value through the generation of enhanced earnings.

 

The LOIP is administered by the Compensation Committee of the Board of Directors. Under normal circumstances the plan remains in effect for the current performance period, the fiscal year. However, the Compensation Committee may discontinue or modify the plan, in its sole discretion, at any time during the performance period, provided that the amount of any award for such partial fiscal year shall be calculated based upon the performance and other factors described herein through the end of the month immediately preceding the date of such discontinuation or modification, with such pro-rated award to be paid if the participating CLO or Commercial Sales Manager (CSM) is still employed and in good standing at the time of such discontinuation or modification.

 

II. Performance Period – This is a 12-month plan that is linked with portfolio performance and production targets established for the fiscal year. However, management may pay estimated awards, as deemed appropriate by the Compensation Committee, at intervals more frequent than annually. Each year the LOIP is reviewed and modified to ensure it is consistent with the financial measures in the annual business plan. Any financial measures that are related to lending performance in the LOIP are reviewed each year and adjusted to coincide with changes in participants, their compensation, and the LOIP formula.

 

 

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III. Plan Participants – The LOIP is intended for certain eligible Commercial Loan Officers. The President and CEO will review the CLO’s at the beginning of each fiscal year and select those eligible to participate in the LOIP. Recommended participants and their participation levels are presented to the Compensation Committee for approval. The list of participating CLO’s will be maintained in the records of the Compensation Committee. Participants who join the Bank during the targeted year may have special arrangements during the time they are developing their portfolios.

 

IV. Participation Levels – The LOIP will have three participation levels, two based on size of each CLO’s book of business (BOB) and one for the CSM. BOB is defined as loans plus deposits assigned to a CLO. A minimum BOB equal to $10 million is needed for eligibility to participate in LOIP. Level I participants are those CLO’s with BOB equal to or greater than $10 million but less than $50 million. Level II participants are those CLO’s with BOB equal to or greater than $50 million. The CSM, having responsibility for the overall Commercial division, will participate based on the combined portfolios of the CLO’s participating in the LOIP.

 

Level I Participants will receive 2.00% of the net interest income (interest income less interest expense) from loans identified as having been originated by the particular CLO prior to the beginning of the fiscal year. Participants also receive 15.00% of the net income (interest income plus 1st year fee income and YTD commercial deposit fee income, less interest expense) from the CLO’s loans originated during the performance period (loan growth).

 

Level II Participants will receive 3.00% of the net interest income (interest income less interest expense) from loans identified as having been originated by the particular CLO prior to the beginning of the fiscal year. Participants also receive 10.00% of the net income (interest income plus 1st year fee income and YTD commercial deposit fee income, less interest expense) from the CLO’s loans originated during the performance period (loan growth).

 

The CSM will receive 1.00% of the net interest income (interest income less interest expense) from loans identified as having been originated by all CLO’s including the CSM participating in the LOIP prior to the beginning of the fiscal year, which shall not exceed 50% of the CSM’s base salary at the time of award. The CSM will also receive 5.00% of the net income (interest income plus 1st year fee income and YTD commercial deposit fee income, less interest expense) from loans originated by all CLO’s including the CSM participating in the LOIP during the performance period (loan growth).

 

Support staff participation will be determined by the CSM with each team member eligible for up to a 10% bonus based on most recent performance appraisal and division performance. Support staff bonuses will be deducted from the CLO & CSM incentive payments on a pro-rata basis of the total amounts earned for the period. A pay matrix is attached in Appendix C.

 

 

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The President and CEO will review the participation levels and percentages at the beginning of each fiscal year and recommend any needed modifications to the Compensation Committee for all plan participants.

 

V. Plan Formula – Fiscal year performance is calculated for each participating CLO to ensure an accurate determination of portfolio performance. A portfolio rating is calculated based on the BOB performance as shown on attached Appendix A. Sample calculations for a Level I and II participant with a portfolio rating of 100% are provided on attached Appendix B.

 

Cumulative interest income from loans existing at the beginning of the performance period is calculated. Interest expense, equal to loan volume times the most recently available average cost of funds for the Bank, is deducted from interest income to determine loan officer contribution. Loan officer contribution is multiplied by the portfolio rating to calculate the income base. The income base is multiplied by the appropriate factor based on participation level to determine the incentive award from existing loans.

 

Cumulative interest income from growth in loans during the performance period is calculated. Interest expense, equal to the growth in loans times the most recently available average cost of funds for the Bank, is deducted from interest income to determine net interest income. 1 st year fee income from loan originations plus YTD commercial deposit fee income is also added to determine loan officer contribution. Loan officer contribution is multiplied by the portfolio rating to calculate the income base. The income base is multiplied by the appropriate factor based on participation level to determine the incentive award from growth in Loans. A decline in a participant’s loan portfolio will result in a negative impact to cumulative interest income for the performance period. This will, in effect, lower the incentive payment allocated for existing loans.

 

The incentive awards from existing loans and loan growth are added to determine the total award payment for the performance period.

 

VI. Book of Business Performance – BOB performance is used to calculate the portfolio rating to help ensure that asset quality, BOB growth, and other performance targets are met. BOB quality guidelines are established by the President and CEO with input from the Senior Credit Officer. There will be five performance measures: 1) Classified Loans - loans that are downgraded to “Special Mention” or lower during the performance period, regardless if loan is subsequently upgraded prior to the end of performance period. 2) Past Due Loans – loans that are past due 30 or more days at quarter end during performance period regardless if loan subsequently becomes current. 3) Net Losses – losses sustained due to charged off loans, deposit accounts, & fraud measured as a percentage of total loans assigned to CLO. 4) Deposit Growth – growth in deposit account balances as of the end of performance period measured as a percentage of target $ growth. 5) Loan Growth – growth in loan portfolio as of the end of the performance period measured as a percentage of target $ growth. Target $ growth will be assigned to each CLO based on growth expectations for the Bank. A sample calculation is provided on attached Appendix A.

 

 

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For the CSM to attain BOB rating of 110%, all CLO direct reports must attain a minimum BOB rating of 100%.

 

VII. Plan Communications -- Following approval of the LOIP by the Compensation Committee, the President and CEO will ensure that all participants are notified of their participation, target awards, the plan formula, how incentive awards are calculated and what they may do to positively influence the size of their awards. During the performance period the President and CEO will ensure that all participants are provided with periodic updates on the status of the LOIP. This enables participants to project the formula awards for which they are potentially eligible.

 

VIII. Award Determination – Awards are calculated and deemed “earned” on a fiscal year annual basis. However, management may pay estimated awards, as deemed appropriate by the Compensation Committee, at intervals more frequent than annually. These estimated awards are considered prepayments of the annual award and subject to claw-back if the amount of the prepayment exceeds the amount of the award actually earned for the fiscal year or if the participant is no longer in good standing during the fiscal year.

 

IX. Award Payments -- As soon as practicable following the end of each fiscal year, the Compensation Committee shall determine the amount of the award earned by each participant in the LOIP during such fiscal year, with the amount of the earned award (minus any prepayments under Section VIII above) to be paid in the Bank’s first regular payroll cycle that commences after the approval of the awards by the Compensation Committee. In order to receive an award for the fiscal year, the participant must be in good standing throughout the fiscal year (written or verbal warning during the performance period will result in the participant forfeiting any right to an award under the LOIP). The payments can be made by separate check or included in regular pay, but will be specifically designated as incentive awards and taxed accordingly. 

 

X. Effect of Termination of Employment or Leave of Absence -- If a participant’s employment is voluntarily or involuntarily terminated during the fiscal year at a time when the participant is in good standing (written or verbal warning during the performance period will result in the participant forfeiting any right to an award under the LOIP), then the participant’s award for such partial fiscal year shall be calculated based upon the performance and other factors described herein through the end of the month immediately preceding the date of such termination of employment (except that the first three performance measures under Section VI shall be based on the entire fiscal year), with such pro-rated award (minus any prepayments under Section VIII above) to be paid when the actual earned awards are paid following completion of the fiscal year as described in Section IX above.

 

If a participant is on medical leave or other leave of absence during the fiscal year, then the participant’s award for the fiscal year shall be calculated based upon the performance and other factors described herein for only the full months of the fiscal 5 year that the participant is not on a leave of absence (except that the first three performance measures under Section VI shall be based on the entire fiscal year), with such pro-rated award (minus any prepayments under Section VIII above) to be paid when the actual earned awards are paid following completion of the fiscal year as described in Section IX above.

 

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XI. LOIP Review -- As soon as practicable following the end of each fiscal year, the President and CEO, with input from the CFO, will review the LOIP and determine whether modifications should be proposed for the new plan year commencing on July 1. Any modifications are subject to review and approval by the Compensation Committee. The President and CEO will ensure that all participants are informed about any changes in the plan as soon as practical following approval and adoption of the new plan.

 

XI, President and CEO and Compensation Committee Discretion – The guidelines for the LOIP build structure into the incentive compensation determination process. Along with the guidelines, a certain amount of common sense and discretion are frequently needed. The President and CEO has the discretion to recommend certain awards to the Compensation Committee, should they be warranted. Similarly, members of the Compensation Committee may recommend certain discretionary awards. This is in keeping with good compensation management practices. 

 

XII. Understanding and Acceptance – By signing the Loan Officer Incentive Plan, participant hereby understands and agrees to all terms and conditions contained in the LOIP. 

 

 

	 	
			Target Loan Growth: 

				 	 	
			Target Deposit Growth:

				 
	 	 	 	 	 	 
	 	
			Acknowledgement:

			

 

 

 

	 	
			Manager: 

				 	 	
			Participant:

				 
	 	 	 	 	 	 
	 	
			Date: __________________________

			

 

 

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Appendix A

 

 

 

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Appendix B

 

 

 

 

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Appendix B Cont.

 

 

 

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Appendix C

 

 

 

 

 

 

 

 

 

 

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