Document:

EX-10.14 FORM OF CONSULTING AGREEMENT

EXHIBIT 10.14

	 
	2451 Cumberland Pkwy

	Suite 3618

	Atlanta, GA 30339

	Telephone (770) 367-8300

	Email byron@bank-resources.com

	Website www.bank-resources.com

	 	 	 
	BANK
RESOURCES, INC.

	 	 
	Linking Tall Together	 	 

February 5, 2008

Organizers

Home Federal Holdings, Inc. (a proposed bank holding company)

Hall County National Bank (a proposed national bank)

Gainesville, GA

Ladies and Gentlemen:

This engagement letter supersedes earlier engagement letters, understandings and agreements. You
understand and agree that all previous professional fees paid to Bank Resources, Inc. are
considered earned.

Bank Resources, Inc. (Bank Resources, Inc. may be known as “Bank Resources”, “we” or “our”) is
pleased to provide the Organizers of Hall County National Bank (may be known as “Bank Group”, “you”
or “your) with this Engagement Letter. The purpose of this letter is to: re-confirm the nature of
the project you are contemplating based on our previous conversations and delineate the services to
be provided by Bank Resources, and; establish and agree on the fees and compensation for Bank
Resources for these services.

Summary of Identified Goals. It is our understanding that you wish to charter a new, “de
novo”, bank chartered by the Office of the Comptroller of the Currency (the “OCC”). You wish,
initially, to establish at least one physical location in Hall County, GA. It is also our
understanding that you may establish a bank holding company.

TERMS OF ENGAGEMENT

1. Scope of Services. Based on the Summary of Identified Goals, above, Bank Resources has
determined that we will provide you the following services:

	 	A.	 	Economic Feasibility Study. We will revise the economic feasibility
study that was prepared for the predecessor new bank effort to reflect an OCC chartered
bank;
	 
	 	B.	 	Strategic Business Plan. Prepare a strategic business plan that is
consistent with guidelines of the federal regulators. The strategic business plan will
be a written summary of how proposed Directors will organize the new Bank’s resources
to meet its goals and how the institution will measure progress. The strategic
business plan will describe the new Bank’s business; include a marketing plan; make
reference to the economic feasibility study, described above; and use peer group data
to justify income and cost structure;
	 
	 	C.	 	Pro-forma Financial Projections. Using a proprietary computer program,
we will prepare Pro-forma financial projections (the “Pro-forma”) based upon certain
inputs provided by your proposed management. The Pro-forma will provide financial
information for opening day pro

 

 

			
	• Page 2 of 4	 	Hall County National Bank (a proposed new financial institution) February 5, 2008

	 	 	 	forma and quarterly projections for at least five years of operations. The line
items in the Pro-forma will be consistent with the Consolidated Reports of Condition
required by the FDIC. We will detail all of the assumptions used to prepare the
Pro-forma’s, including the assumed interest rate scenario for each interest earning
asset and interest costing liability over the term of the business plan. We will
present a thorough justification to support proposed capital, including any branch
expansion and off-balance-sheet activities. We will provide the basis for the
assumptions used for noninterest income and noninterest expense. We will also
provide “stress tests” of the Pro-forma. The stress test will adjust for adverse
changes in the interest rate environment, higher than expected operating expenses,
marketing costs, and reduced growth rates;
	 
	 	D.	 	Interagency Charter and Federal Deposit Insurance Application (may be
known as the “Charter Application”). Completion of the Charter Application, documents
and all materials required by the federal regulators. The Charter Application will be
prepared consistent with federal regulatory guidelines. It will describe any issues
about the permissibility of the proposal with regard to applicable state or federal
laws or regulations;
	 
	 	E.	 	Interagency Biographical and Financial Report (may be know as the
“IBF”). We will assist in updating previously prepared Organizers’ confidential
Interagency Biographical and Financial Reports (the “IBFR”), which must be filed with
the Charter Application, to ensure that such information complies as to form and
completeness with customary regulators, FDIC and Fed review standards. (There will be
additional charges for each new IBM that has not been previously reviewed by our
staff). The completion of IBF’s by organizers will be accessed through electronic
means. Of course, it will be incumbent upon each Organizer to actively participate in
the preparation of their statement;
	 
	 	F.	 	Liaison with Regulatory Bodies. We will talk directly, as appropriate,
with the various regulators who oversee the Charter Application and the BHC
Application. We will help you respond to any questions from the regulators, including
but not limited to the FDIC, about the Charter Application; and, work expeditiously to
provide additional information, clarifications, and modifications, as necessary, to the
Charter Application so that the Charter Application will be deemed “technically
complete” and “accepted” for processing;
	 
	 	G.	 	Field Examination. Education and preparation of all Organizers for
the “Field Examination” by the federal regulators. This will include preparing all
Organizers for the Field Examination group and individual meetings, which are conducted
by the regulators as part of their due diligence;
	 
	 	H.	 	Application to the Board of Governors of the Federal Reserve System
(may be known as the “BHC Application “). If you desire, we will prepare an
application pursuant to section 3(a)(1) of the BHC ACT that seeks to form a bank
holding company. The BHC Application will be prepared consistent with federal
regulatory guidelines;
	 
	 	I.	 	Miscellaneous Duties. We will be available throughout the organization
process and we will attend all Organizer/Director meetings that you deem appropriate.
Approximately 30 days prior to your Pre-opening examination, Bank Resources will meet
with you to make certain you have all documents called for by the regulator’s approval
letters; and,

	2.	 	Bank Resources Fees. Bank Resources’ fees, in consideration of the noted scope of services
(1A – 1J), are as follows:
	 
	 	 	A. Professional Fees: The professional fees for the services provided by Bank
Resources are $39,000 and shall be considered due and payable according to the following
Professional Fee Payment Schedule:

	 
	7,800 001-Mar-08

	7,800 001-Apr-08

	7,800 001-May-08

	7,800.001-Jun-08

	7.800.001-Jul-08

	 

	$39,000.00

	 

 

 

			
	• Page 3 of 4	 	Hall County National Bank (a proposed new financial institution) February 5, 2008

	 	 	B. IBFR Fees: You agree to pay $650.00 immediately for each Organizer, Director or
Executive Officer added before or after Charter Application has been filed
	 
	 	 	C. Options: Once the Bank receives final charter approval, you shall grant to us
stock options (“Options”) to purchase 6,000 shares of the shares of the common stock of the
new Bank. The Options shall expire ten (10) years from the date of award, or the opening of
the Bank, whichever is later. The price of each share of stock purchased shall be Ten
Dollars ($10.00), also known as the “exercise” or “strike” price”.1
Notwithstanding anything to the contrary as described above, the Options shall be awarded
under substantially the same terms and conditions as any stock wan ants or stock options
which may be awarded to the Organizers, officers or Board of Directors. Further, the
Options contemplated herein shall be transferable; subject to corporate reorganizations,
which may result in a proportionate increase or decrease in the number of Options and/or the
exercise price and/or, result in the Options being exercisable in whole or in part. If the
bank regulators; the Securities and Exchange Commission; or, any other government agency in
any way prohibit the award of the Options described above, then the proposed bank or its
bank holding company shall immediately pay Bank Resources an amount equal to $12,000.
Nothing contained herein shall be construed as contingency fees.

	3.	 	Expenses and Other Charges. Bank Resources’ fees for our services under this engagement
shall also include our out-of-pocket expenses which will include for example, but not be
limited to, travel, copies and the production costs of the various applications. Bank
Resources will send monthly invoices via e-mail, which will include the monthly fees for our
services and our out-of-pocket expenses in performing those services. Invoices are payable
upon presentation. All invoices shall be due and payable upon receipt. Also, you recognize
that Bank Resources has incurred certain expenses during a pre-organizational period. You
agree to reimburse Bank Resources for the out-of pocket expenses.
	 
	4.	 	Ownership of work products. Rights of ownership and reproduction of materials supplied by
Bank Resources remain solely with Bank Resources. This includes proprietary methods, business
planning materials and finished products, pro-forma financial projections, handouts and
evaluation tools used during the implementation of this Agreement.
	 
	5.	 	Advertisements and Internet. Upon receiving regulatory approvals of the Application, Bank
Resources shall have the right to include the Bank in its list of references and subject to
your specific approval to publish a tombstone advertisement. This reference list is included
on our website and collateral materials.
	 
	6.	 	Confidentiality and Non Disclosure. Each Organizer and party to this engagement letter may
provide to the other technical and/or business information which the disclosing party
considers to be confidential and proprietary. Each party is willing to assure the other that
it will receive and hold such information in confidence and trust, and use and disclose such
information only in support of the purposes for which it is provided. You understand and
agree that certain materials developed by Bank Resources shall be subject to copyright laws.
As such, you agree to protect these materials and shall not provide copies to anyone unless
required by banking regulation or law.
	 
	7.	 	Severability. Every provision of this Agreement is severable. If any provision hereof is
held to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall
not affect the validity of the remainder of this Agreement, and a court of competent
jurisdiction shall reform such illegal or invalid provision
	 
	8.	 	Applicable Law. The laws of the State of Georgia shall govern the interpretation of this
Agreement.

**********

 

			
	1	 	the number of options and exercise price is based on an
initial offering price per share of $10.00. Should the initial offering price
be different than $10.00 per share, then the exercise price and the number of
options shall be increased or decreased proportionately, as the case may be.

 

 

			
	• Page 4 of 4	 	Hall County National Bank (a proposed new financial institution) February 5, 2008

Again, on a personal basis and on behalf of Bank Resources, let me express our enthusiasm about
working with you on this project. If the foregoing correctly sets forth your understanding of the
terms of our engagement, please so indicate by dating, signing and returning this letter.

	 	 	 	 	 
	 	Sincerely yours

 	 
	 	/s/ Byron Richardson
 	 
	 	Byron Richardson, President 	 
	 	Bank Resources, Inc 	 
	 

I have read the foregoing Engagement Letter and, by signing below, indicate that I fully understand
its terms and have had the opportunity to ask questions. This Engagement Letter correctly sets
forth the terms between the Organizers of the Home Federal Holdings, Inc. and Hall County National
Bank and Bank Resources, Inc. and that, by signing below I am fully authorized to bind the
Organizing group of the Hall County National Bank.

Home Federal Holdings, Inc.

and

Hall County National Bank

	 
	/s/ Alfred J. Couch

	Signature

	 	 	 
	By:

	 	Alfred J. Couch
	 

	 	 
	 
	 	 
	Its:

	 	Organizer
	 

	 	 
	Date:

	 	January 29, 2008exv10w1

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”), including the attached Exhibit “A,” is entered into
between the Inn of the Mountain Gods Resort and Casino, a Mescalero Apache Tribal enterprise,
having offices at 287 Carrizo Canyon Road, Mescalero, New Mexico 88340 (“Employer”), and Daniel
A McCue , an individual currently residing at 2150 Del Rio Road, Roseburg, OR 97470 (“Employee”), to
be effective as of 1st day of  September, 2008 (the “Effective Date”).

WITNESSETH

     WHEREAS, Employer desires to employ Employee in the position set forth on Exhibit “A” and
under the terms and conditions set forth in this Employment Agreement.

     WHEREAS, Employee is willing to accept employment with Employer under the terms and conditions
set forth in this Employment Agreement; and

     NOW, THEREFORE, for and in consideration of the mutual promises, covenants, and obligations
contained herein, Employer and Employee agree as follows:

ARTICLE 1: EMPLOYMENT AND DUTIES:

     1.1 Employer agrees to employ Employee, and Employee agrees to be employed by Employer,
beginning as of the Effective Date and continuing until the date set forth on Exhibit “A” (the
“Term”), subject to the terms and conditions of this Agreement.

     1.2 Employee initially shall be employed in the position set forth on Exhibit “A.” Employer
may subsequently assign Employee to a different position or modify Employee’s duties and
responsibilities; provided however, in the event Employer substantially reduces the duties or
responsibilities of Employee, Employee may elect to terminate this Agreement pursuant to Article 3
below. Employee agrees to serve in the assigned position and to perform diligently and to the best
of Employee’s abilities the duties and services appertaining to such position as determined by
Employer, as well as such additional or different duties and services appropriate to such position
which Employee from time to time may be reasonably directed to perform by Employer. Employee shall
at all times comply with and be subject to such policies and procedures as Employer may establish
from time to time.

     1.3 Employee shall, during the period of Employee’s employment by Employer, devote Employee’s
full business time, energy, and best efforts to the business and affairs of Employer and its
Enterprises or other entities. Employee may not engage, directly or indirectly, in any other
business, investment, or activity that interferes with Employee’s performance of Employee’s duties
hereunder, is contrary to the interests of Employer, or requires any significant portion of
Employee’s business time.

 

 

     1.4 In connection with Employee’s employment by Employer, Employer shall endeavor to provide
Employee access to such information pertaining to the business and services of Employer as is
appropriate for Employee’s employment responsibilities. Employer also shall endeavor to provide to
Employee the opportunity to develop business relationships with those of Employer’s clients and
potential clients that are appropriate for Employee’s employment responsibilities.

     1.5 Employee acknowledges and agrees that at all times during the employment relationship
Employee owes fiduciary duties to Employer, including but not limited to the fiduciary duties of
the highest loyalty, fidelity and allegiance to act at all times in the best interests of the
Employer, to make full disclosure to Employer of all information that pertains to Employer’s
business and interests, to do no act which would injure Employer’s business, its interests, or its
reputation, and to refrain from using for Employee’s own benefit or for the benefit of others any
information or opportunities pertaining to Employer’s business or interests that are entrusted to
Employee or that Employee learned while employed by Employer. Employee acknowledges and agrees that
upon termination of the employment relationship, Employee shall continue to refrain from using for
Employee’s own benefit or the benefit of others any information or opportunities pertaining to
Employer’s business or interests that were entrusted to Employee during the employment relationship
or that Employee learned while employed by Employer. Employee agrees that while employed by
Employer and thereafter Employee shall not knowingly take any action that interferes with the
internal relationships between Employer and its employees or representatives or interferes with the
external relationships between Employer and third parties.

     1.6 It is agreed that any direct or indirect interest in, connection with, or benefit from any
outside activities, particularly commercial activities, which interest might in any way adversely
affect Employer or any of its Enterprises or other entities, involves a possible conflict of
interest. In keeping with Employee’s fiduciary duties to Employer, Employee agrees that during the
employment relationship Employee shall not knowingly become involved in a conflict of interest with
Employer or its affiliates, or upon discovery thereof, allow such a conflict to continue. Moreover,
Employee agrees that Employee shall disclose to Employer’s Chairperson or the Chief Operating
Officer should such duty be so delegated, same herein referred to as “Chairperson” any facts that
might involve such a conflict of interest that has not been approved by Employer’s Chairperson.
Employer and Employee recognize that it is impossible to provide an exhaustive list of actions or
interests that constitute a “conflict of interest.” Moreover, Employer and Employee recognize there
are many borderline situations. In some instances, full disclosure of facts by the Employee to
Employer’s Chairperson or the Chief Operating Officer should such duty be so delegated, may be all
that is necessary to enable Employer or its affiliates to protect its interests. In others, if no
improper motivation appears to exist and the interests of Employer or its affiliates have not
suffered, prompt elimination of the outside interest will suffice. In still others, it may be
necessary for Employer to terminate the employment relationship. Employer and Employee agree that
Employer’s determination as to whether a conflict of interest exists shall be conclusive. Employer
reserves the right to take such action as, in its judgment, will end the conflict.

 

 

     1.7 Employee understands and acknowledges that the terms and conditions of this Agreement
constitute confidential information. Employee shall keep confidential the terms of this Agreement
and shall not disclose this confidential information to anyone other than as required by law.
Employee acknowledges and understands that disclosure of the terms of this Agreement constitutes a
material breach of this Agreement and could subject Employee to disciplinary action, including
without limitation, termination of employment.

ARTICLE 2: COMPENSATION AND BENEFITS:

     2.1 Employee’s monthly base salary during the Term shall be not less than the amount set forth
under the heading “Monthly Base Salary” on Exhibit “A,” subject to increase at the sole discretion
of the Employer, provided however, that Employee shall receive an annual cost of living increase
based on the percentage specified by Employer for all of Employer’s employees or a mutually
agreeable federal governmental index, which shall be paid in accordance with Employer’s standard
payroll practice. Any calculation to be made under this Agreement with respect to Employee’s
Monthly Base Salary shall be made using the then current Monthly Base Salary in effect at the time
of the event for which such calculation is made.

     2.2 While employed by Employer, Employee shall be allowed to participate, on the same basis
generally as other employees of Employer, in all general employee benefit plans and programs,
including improvements or modifications of the same, which on the effective date or thereafter are
made available by Employer to all or substantially all of Employer’s employees. Such benefits,
plans, and programs may include, without limitation, paid vacation, paid sick leave, paid holidays,
and medical, health, and dental care, life insurance, disability protection, and pension plans.
Nothing in this Agreement is to be construed or interpreted to provide greater rights,
participation, coverage, or benefits under such benefit plans or programs than provided to
similarly situated employees pursuant to the terms and conditions of such benefit plans and
programs.

     2.3 While employed by Employer, Employee shall be entitled to reimbursement for all reasonable
expenses, including travel and entertainment, incurred by Employee in the performance of Employee’s
duties. Where time allows, any such request for expenditure shall be approved in advance by the
Chief Operating Officer. Employee will maintain records and written receipts as required by the
Employer’s policy and reasonably requested by the Employer to substantiate such expenses.

     2.4 Employer shall not by reason of this Article 2 be obligated to institute, maintain, or
refrain from changing, amending, or discontinuing, any such incentive compensation or employee
benefit program or plan, so long as such actions are similarly applicable to covered employees
generally. Moreover, unless specifically provided for in a written plan document adopted by the
Management Board of the Inn of the Mountain Gods Resort and Casino, none of the benefits or
arrangements described in this Article 2 shall be secured or funded in any way, and each shall
instead constitute an unfunded and

 

 

unsecured promise to pay money in the future exclusively from the general assets of Employer.

     2.5 Employer may withhold from any compensation, benefits, or amounts payable under this
Agreement all federal, state, or other taxes as may be required pursuant to any law or governmental
regulation or ruling.

ARTICLE 3: TERMINATION PRIOR TO EXPIRATION OF TERM AND EFFECTS OF SUCH TERMINATION:

     3.1 Notwithstanding any other provisions of this Agreement, Employer shall have the right to
terminate Employee’s employment under this Agreement at any time prior to the expiration of the
Term for any of the following reasons:

     (i) For “cause” upon the determination by the Employer’s Chairperson that “cause”
exists for the termination of the employment relationship. As used in this Section 3.1
(i), the term “cause” shall mean [a] Employee’s gross negligence or willful misconduct
in the performance of the duties and services required of Employee pursuant to this
Agreement; [b] Employee has been convicted of a felony; [c] Employee has willfully
refused without proper legal reason to perform the duties and responsibilities required
of Employee under this Agreement which remains uncorrected for thirty (30) days
following written notice to Employee by Employer of such breach; [d] Employee’s
involvement in a conflict of interest as referenced in Section 1.6 for which Employer
makes a determination to terminate the employment of Employee which remains uncorrected
for thirty (30) days following written notice to Employee by Employer of such breach;
[e] Employee has willfully engaged in conduct that Employee knows or should know is
materially injurious to Employer or any of its respective Enterprises or other
entities; [f] Employee’s material breach of any material provision of this Agreement or
Tribal policy which remains uncorrected for thirty (30) days following written notice
to Employee by Employer of such breach; [g] Employee violates the Indian Gaming
Regulatory Act or other applicable United States law as proscribed by Section 5.1; or
[h] Employee no longer has a valid Mescalero Apache Tribal Gaming Commission Gaming
License. It is expressly acknowledged and agreed that the decision as to whether
“cause” exists for termination of the employment relationship by Employer is delegated
to the Employer’s Chairperson for determination. If Employee disagrees with the
decision reached by Employer’s Chairperson, the dispute will be limited to whether
Employer’s Chairperson reached the decision in good faith;

     (ii) for any other reason whatsoever, with or without cause, in the sole
discretion of the Chairperson of Employer;

     (iii) upon Employee’s death; or

 

 

     (iv) upon Employee’s becoming disabled so the Employee is permanently and totally
unable to perform Employee’s duties for Employer as a result of any medically
determinable physical or mental impairment as supported by a written medical opinion to
the foregoing effect by a physician selected by Employer.

The termination of Employee’s employment prior to the expiration of the Term shall constitute a
severance and shall be subject to the terms of Section 3.3 below.

     3.2 Notwithstanding any other provisions of this Agreement except Section 8.6, Employee shall
have the right to terminate the employment relationship under this Agreement at any time prior to
the expiration of the Term of employment of the following reasons:

	 	(i)	 	a material breach by Employer of any material provision of
this Agreement which remains uncorrected for thirty (30) days following
written notice by Employee of such breach to Employer. Any such termination
shall be subject to the provisions of Section 3.3 below.
	 
	 	(ii)	 	for any other reason whatsoever, in the sole discretion of
Employee.

     3.3 Upon termination of the employment relationship by either Employer or Employee prior to
the expiration of the Term, in consideration of the Employees continued obligations hereunder,
after such termination (including without limitation Employee’s under Article 6, 7 and Section 8.2
) to receive the then current monthly base salary, benefits, allowance continuation as set forth in
Exhibit A as follows:

	 	(i)	 	After employee has been employed for the term of six (6)
months, Employee shall have a severance package of six (6) months wages in the
event of termination of the employment of Employee. The initial six (6) month
period shall not be calculated in determining severance payable under this
subparagraph.
	 
	 	(ii)	 	Same should be paid at the time of normal preparation and
issuance of payroll checks, and same shall be reduced by standard deductions
taken from such severance payments.
	 
	 	(iii)	 	Such severance under the provisions of this section shall be
limited to a total of six (6) months of severance.
	 
	 	(iv)	 	Such severance payment shall terminate should employee
violate the provisions of Article 7 (post employment non-competition
obligations) or Section 8.2 (under miscellaneous). Such termination of
severance for any such violation shall be upon giving notice to Employee that
such severance is being stopped

 

 

	 	 	 	and no further payment will be made pursuant to the provisions of this
Section.

     3.4 Upon termination of the employment relationship as a result of Employee’s death,
Employee’s heirs, administrators, or legatees shall be entitled to Employee’s pro rata salary
through the date of such termination.

     3.5 In all cases, the compensation and benefits payable to Employee under this Agreement upon
termination of the employment relationship shall be offset against any amounts to which Employee
may otherwise be entitled under any and all severance plans, and policies of Employer.

     3.6 Termination of the employment relationship does not terminate those obligations imposed by
this Agreement that are continuing obligations, including, without limitation, Employee’s
obligations under Articles 6 ,7 and Section 8.2.

     3.7 This Agreement governs the rights and obligations of Employer and Employee with respect to
Employee’s salary and other perquisites of employment.

ARTICLE 4: CONTINUATION OF EMPLOYMENT BEYOND TERM; TERMINATION AND EFFECTS OF TERMINATION:

     4.1 Should Employee remain employed by Employer beyond the expiration of the Term specified on
Exhibit “A,” such employment shall convert to an at will employment for a month to month period
with same terminable at anytime by either Employee or Employer for any reason whatsoever, with or
without cause. During such month to month employment, severance benefits payable under Section 3.3
above, shall continue to accrue. Other than the severance provisions under Section 3.3. above such
termination of the employment relationship by either Employer or Employee for any reason
whatsoever, shall terminate all benefits and rights to Employee except those provided by the
severance package as referred to above.

ARTICLE 5: MESCALERO APACHE TRIBE LAWS, MESCALERO APACHE TRIBAL GAMING COMMISSION REGULATIONS AND
UNITED STATES INDIAN GAMING REGULATORY ACT AND OTHER LAWS:

     5.1. Employee shall at all times comply with applicable Mescalero Apache Tribal laws,
Mescalero Apache Tribal Gaming Commission regulations and United States laws applicable to
Employee’s actions on behalf of Employer, including specifically, without limitation, the Tribal
Gaming Ordinance and the United States Indian Gaming Regulatory Act, generally codified in 25 USC
2701 (“IGRA”), as the IGRA may hereafter be amended, and/or its successor statutes. If Employee
pleads guilty to or nolo contendere or admits civil or criminal liability under the IGRA or other
applicable United States law, or if a court finds that Employee has personal civil or criminal
liability under the IGRA or other applicable United States law, or if a court finds that Employee
committed an action resulting in any Mescalero Apache Tribal Resort Enterprise or other Tribal
Enterprise or entity having civil or criminal liability or responsibility under the IGRA or other

 

 

applicable United States law with knowledge of the activities giving rise to such liability or
knowledge of facts from which Employee should have reasonably inferred the activities giving rise
to liability had occurred or were likely to occur, such action or finding shall constitute “cause”
for termination under this Agreement unless Employer’s highest applicable level of Employer’s
management determines that the actions found to be in violation of the IGRA or other applicable
United States law were taken in good faith and in compliance with all applicable policies of
Employer.

ARTICLE 6: OWNERSHIP AND PROTECTION OF INFORMATION; COPYRIGHTS:

     6.1 All information, ideas, concepts, improvements, discoveries, and inventions, whether
patentable or not, which are conceived, made, developed or acquired by Employee, individually or in
conjunction with others, during Employee’s employment by Employer (whether during business hours or
otherwise and whether on Employer’s premises or otherwise) which relate to Employer’s business,
products or services (including, without limitation, all such information relating to corporate
opportunities, research, financial and sales data, pricing and trading terms, evaluations,
opinions, interpretations, acquisition prospects, the identity of customers or their requirements,
the identity of key contacts within the customer’s organizations or within the organization of
acquisition prospects, or marketing and merchandising techniques, prospective names, and marks)
shall be disclosed to Employer and are and shall be the sole and exclusive property of Employer.
Moreover, all drawings, memoranda, notes, records, files, correspondence, drawings, manuals,
models, specifications, computer programs, maps and all other writings or materials of any type
embodying any of such information, ideas, concepts, improvements, discoveries, and inventions are
and shall be the sole and exclusive property of Employer.

     6.2 Employee acknowledges that the business of Employer, its Enterprises and other entities is
highly competitive and that their strategies, methods, books, records, and documents, their
technical information concerning their products, equipment, services, and processes, procurement
procedures and pricing techniques, the names of and other information (such as credit and financial
data) concerning their customers and business affiliates, all comprise confidential business
information and trade secrets which are valuable, special, and unique assets which Employer, its
Enterprises and other entities use in their business to obtain a competitive advantage over their
competitors. Employee further acknowledges that protection of such confidential business
information and trade secrets against unauthorized disclosure and use is of critical importance to
Employer, its Enterprises and other entities in maintaining their competitive position. Employee
hereby agrees that Employee will not, at any time during or after his employment by Employer, make
any unauthorized disclosure of any confidential business information or trade secrets of Employer,
its subsidiaries and other entities, or make any use thereof, except in the carrying out of his or
her employment responsibilities hereunder. Employer its Enterprises and other entities shall be
third party beneficiaries of Employee’s obligations under this Section. As a result of Employee’s
employment by Employer, Employee may also from time to time have access to, or knowledge of,
confidential business information or trade secrets of third parties, such as customers, suppliers,
partners, joint ventures, and

 

 

the like, of Employer, its subsidiaries and other entities. Employee also agrees to preserve
and protect the confidentiality of such third party confidential information and trade secrets to
the same extent, and on the same basis, as Employer’s confidential business information and trade
secrets. Employee acknowledges that money damages would not be sufficient remedy for any breach of
this Article 6 by Employee, and Employer shall be entitled to enforce the provisions of this
Article 6 by terminating any payments then owing to Employee under this Agreement and/or to
specific performance and injunctive relief as remedies for such breach or any threatened breach.
Such remedies shall not be deemed the exclusive remedies for a breach of this Article 6, but shall
be in addition to all remedies available at law or in equity to Employer, including the recovery of
damages from Employee and his or her agents involved in such breach.

     6.3 All written materials, records, and other documents made by, or coming into the possession
of, Employee during the period of Employee’s employment by Employer which contain or disclose
confidential business information or trade secrets of Employer, its Enterprises and other entities
shall be and remain the property of Employer, its Enterprises and other entities, as the case may
be. Upon termination of Employee’s employment by Employer, for any reason, Employee promptly shall
deliver the same, and all copies thereof, to Employer.

     6.4 If, during Employee’s employment by Employer, Employee creates any original work of
authorship fixed in any tangible medium of expression which is the subject matter of copyright
(such as videotapes, written presentations on acquisitions, computer programs, drawings, maps,
architectural renditions, models, manuals, brochures, or the like) relating to Employer’s business,
products, or services, whether such work is created solely by Employee or jointly with others
(whether during business hours or otherwise and whether on Employer’s premises or otherwise),
Employee shall disclose such work to Employer. Employer shall be deemed the author of such work if
the work is prepared by Employee in the scope of his employment; or, if the work is not prepared by
Employee within the scope of his employment but is specially ordered by Employer as a contribution
to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as
a supplementary work, as a compilation, or as an instructional text, then the work shall be
considered to be work made for hire and Employer shall be the author of the work. If such work is
neither prepared by the Employee within the scope of his employment nor a work specially ordered
and is deemed to be a work made for hire, then Employee hereby agrees to assign, and by these
presents does assign, to Employer all of Employee’s worldwide right, title, and interest in and to
such work and all rights of copyright therein.

     6.5 During the period of Employee’s employment by Employer and thereafter, Employee shall
assist Employer and its nominee, at any time, in the protection of Employer’s worldwide right,
title, and interest in and to information, ideas, concepts, improvements, discoveries, and
inventions, and its copyrighted works, including without limitation, the execution of all formal
assignment documents requested by Employer or its nominee and the execution of all lawful oaths and
applications for applications for patents and registration of copyright in the United States and
foreign countries.

 

 

ARTICLE 7: POST-EMPLOYMENT NON-COMPETITION OBLIGATIONS:

     7.1 As part of the consideration for the compensation and benefits to be paid to Employee
hereunder, in keeping with Employee’s duties as a fiduciary and in order to protect Employer’s
interests in the confidential information of Employer and the business relationships developed by
Employee with the clients and potential clients of Employer, and as an additional incentive for
Employer to enter into this Agreement, Employer and Employee agree to the non-competition
provisions of this Article 7. Employee agrees that during the period of Employee’s non-competition
obligations hereunder, Employee will not, directly or indirectly work for Employee or for others,
in Otero County, Lincoln County, Chaves County and Dona Ana County, New Mexico:

     (i) engage in any business competitive with the business conducted by Employer;

     (ii) render advice or services to, or otherwise assist, any other person,
association, or entity who is engaged, directly or indirectly, in any business
competitive with the business conducted by Employer;

     (iii) induce any employee of Employer, its Enterprises and other entities to
terminate his or her employment with Employer, its Enterprises and other entities, or
hire or assist in the hiring of any such employee by person, association, or entity not
affiliated with Employer.

These non-competition obligations shall extend during the term of this agreement and for twelve
(12) months after termination or expiration whichever should occur last.

     7.2 Employee understands that the foregoing restrictions may limit his ability to engage in
certain businesses during the period provided for above, but acknowledges that Employee will
receive sufficiently high remuneration and other benefits (e.g., the right to receive compensation
under Section 3.3 upon termination) under this Agreement to justify such restriction. Employee
acknowledges that money damages would not be sufficient remedy for any breach of this Article 7 by
Employee, and Employer shall be entitled to enforce the provisions of this Article 7 by terminating
any payments then owing to Employee under this Agreement and/or to specific performance and
injunctive relief as remedies for such breach or any threatened breach. Such remedies shall not be
deemed the exclusive remedies for a breach of this Article 7, but shall be in addition to all
remedies available at law or in equity to Employer, including, without limitation, the recovery of
damages from Employee and his or her agents involved in such breach.

     7.3 It is expressly understood and agreed that Employer and Employee consider the restrictions
contained in this Article 7 to be reasonable and necessary to protect the proprietary information
of Employer. Nevertheless, if any of the aforesaid restrictions are found by a court having
jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise
unenforceable, the parties intend for the restrictions therein set

 

 

forth to be modified by such courts so as to be reasonable and enforceable and, as so modified
by the court, to be fully enforced.

ARTICLE 8: MISCELLANEOUS:

     8.1 For purposes of this Agreement the term “Employer” shall include the Inn of the Mountain
Gods Resort and Casino, Ski Apache, Casino Apache Travel Center and any other Enterprise or entity
of the Inn of the Mountain Gods Resort and Casino.

     8.2 Employee shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Employer, its
Enterprises and other entities, or any of such entities’ officers, employees, agents or
representatives that are slanderous, libelous, or defamatory; or that disclose private or
confidential information about Employer, its Enterprises and other entities, or any of such
entities’ business affairs, officers, employees, agents, or representatives; or that constitute an
intrusion into the seclusion or private lives of Employer, its Enterprises and other entities, or
such entities’ officers, employees, agents, or representatives; or that give rise to unreasonable
publicity about the private lives of Employer, its Enterprises and other entities, or any of such
entities’ officers, employees, agents, or representatives; or that place Employer, its Enterprises
and other entities, or any of such entities’ or its officers, employees, agents, or representatives
in a false light before the public; or that constitute a misappropriation of the name or likeness
of Employer, its Enterprises and other entities, or any of such entities’ or its officers,
employees, agents, or representatives. A violation or threatened violation of this prohibition may
be enjoined by the courts. The rights afforded the Employer under this provision are in addition to
any and all rights and remedies otherwise afforded by law.

     8.3 For purposes of this Agreement, notices and all other communications provided for herein
shall be in writing and shall be deemed to have been duly given when personally delivered or when
mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

If to Employer:

	 	 	 
	Chief Operating Officer

	 	F. Randolph Burroughs, Esq.
	Inn of the Mountain Gods Resort and Casino

	 and 	Burroughs and Rhodes 
	287 Carrizo Canyon Road

	 	906 Virginia Ave. 
	Mescalero, New Mexico 88340
	 	Alamogordo, New Mexico 88310

If to Employee, to the address shown on the first page hereof.

Either Employer or Employee may furnish a change of address to the other in writing in accordance
herewith, except that notices of changes of address shall be effective only upon receipt.

 

 

     8.4 This Agreement shall be governed in all respects by the laws of the Mescalero Apache
Tribe, excluding any conflict-of-law rule or principle that might refer the construction of the
Agreement to the federal courts of the United States.

     8.5 No failure by either party hereto at any time to give notice of any breach by the other
party of, or to require compliance with, any condition or provision of this Agreement shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

     8.6 If a dispute arises out of or related to this Agreement, other than a dispute regarding
Employee’s obligations under Article 6, or Article 7, and if the dispute cannot be settled through
direct discussions, then Employer and Employee agree to first endeavor to settle the dispute in an
amicable manner by mediation, before having recourse to any other proceeding or forum.

     8.7 Each of Employer and Employee is a citizen of the United States of America. Employer’s
principal place of business is in Mescalero, Otero County, New Mexico. This Agreement was
negotiated and signed in Mescalero, New Mexico. This Agreement shall be performed in Mescalero, New
Mexico. Any litigation that may be brought by either Employer or Employee involving the enforcement
of this Agreement or the rights, duties, or obligations of this Agreement, shall be brought
exclusively in the Tribal court sitting in Mescalero, Otero County, New Mexico, or federal courts
having jurisdiction over the Mescalero Apache Tribe.

     8.8 It is a desire and intent of the parties that the terms, provisions, covenants, and
remedies contained in this Agreement shall be enforceable to the fullest extent permitted by law.
If any such term, provision, covenant, or remedy of this Agreement or the application thereof to
any person, association, or entity or circumstances shall, to any extent, be construed to be
invalid or unenforceable in whole or in part, then such term, provision, covenant, or remedy shall
be construed in a manner so as to permit its enforceability under the applicable law to the fullest
extent permitted by law. In any case, the remaining provisions of this Agreement or the application
thereof to any person, association, or entity or circumstances other than those to which they have
been held invalid or unenforceable, shall remain in full force and effect.

     8.9 This Agreement shall be binding upon and inure to the benefit of Employer and any other
person, association, or entity which may hereafter acquire or succeed to all or substantially all
of the business or assets of Employer by any means whether direct or indirect, by purchase, merger,
consolidation, or otherwise. Employee’s rights and obligations under Agreement hereof are personal
and such rights, benefits, and obligations of Employee shall not be voluntarily or involuntarily
assigned, alienated, or transferred, whether by operation of law or otherwise, without the prior
written consent of Employer.

     8.10 There may exist other agreements between Employer and Employee relating to the employment
relationship between them, e.g., the agreement with respect to company policies contained in
Employer’s Policy booklet and agreements with respect to

 

 

benefit plans and health insurance. This Agreement replaces and merges previous agreements and
discussions pertaining to the following subject matters covered herein: the nature of Employee’s
employment relationship with Employer and the term and termination of such relationship. This
Agreement constitutes the entire agreement of the parties with regard to such subject matters, and
contains all of the covenants, promises, representations, warranties, and agreements between the
parties with respect such subject matters. Each party to this Agreement acknowledges that no
representation, inducement, promise, or agreement, oral or written, has been made by either party
with respect to such subject matters, which is not embodied herein, and that no agreement,
statement, or promise relating to the employment of Employee by Employer that is not contained in
this Agreement shall be valid or binding. Any modification of this Agreement will be effective only
if it is in writing and signed by each party whose rights hereunder are affected thereby, provided
that any such modification must be authorized or approved by Employer’s Chief Operating Officer.

     8.11 Employer and Employee agree that a facsimile or emailed copy of this agreement shall be
valid for all purposes herein.

     IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple
originals to be effective on the date first stated above.

INN OF THE MOUNTAIN GODS

RESORT AND CASINO

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas A. Lentz
 

Douglas A. Lentz, Chief Operating Officer
	 	 	 	By:
	 	/s/ Daniel A. McCue
 

Daniel A. McCue, Employee
	 	 

This 2nd day of September, 2008.

 

 

EXHIBIT “A” TO

EXECUTIVE EMPLOYMENT AGREEMENT

BETWEEN THE

INN OF THE MOUNTAIN GODS RESORT AND CASINO

AND

	 	 	 
	Employee Name:

	 	Daniel A. McCue
	 
	 	 
	Term:

	 	Effective the 1st day of September, 2008 thru the
31st day of August, 2011.
	 
	 	 
	Position:

	 	Chief Financial Officer
	 
	 	 
	Location:

	 	Mescalero, New Mexico
	 
	 	 
	Reporting Relationship:

	 	To Chief Operating Officer or any person so
designated by the Chief Operating Officer.
	 
	 	 
	Monthly Base Salary:

	 	Sixteen Thousand Six Hundred Sixty Six and 66/100
($16,666.66)
	 
	 	 
	Moving Expenses:

	 	All reasonable actual moving expenses shall be
reimbursed to Employee.
	 
	 	 
	Housing:

	 	The Employer recognizes that the Employee must
relocate from his current primary residence. The
Employer agrees to mitigate the cost of such
relocation in the following manner. The Employer
shall provide accommodations at The “Hotel Tower”
adjacent to Inn of the Mountain Gods, at no cost
to the employee or at the employee’s option the
employer will reimburse the employee for the cost
of off site accommodations with a temporary
housing allowance. The Employee and Employee’s
family are eligible to utilize this housing for
residential purposes for a period up to ninety
(90) days from the date of arrival in New Mexico
(on or before September 1, 2008).

 

 

	 	 	 
	Employee Benefits:

	 	Employee, spouse and eligible dependents will be
eligible for immediate coverage for medical, dental,
vision to the extent permitted by the Plan Document. At
the employee option he may choose to be covered under
COBRA at his current employer until a point where he
becomes covered under the Plan Document. If the
employee chooses this option she will be reimburse for
any cost associated with those COBRA payments from the
time of separation from his current employer until
being covered by the employer’s benefit plan.
	 
	 	 
	C.P.A. License

	 	For as long as the Employee is employed by Employer,
the Employer shall pay for :
	 

	 	1. Application fees and annual dues for Employee’s membership in
the New Mexico Society of Certified Public Accountants and the
American Institute of Certified Public Accountants.
	 

	 	2. Employee’s licensing as a CPA by the New Mexico Public
Accountancy Board.
	 

	 	3 .The minimum continuing professional education credits required
for the Employee to maintain his CPA license: however specific
selections of certified professional education courses and/or
seminars must be pre-approved by Employer.
	 
	 	 
	Severance:

	 	As set forth in Article 3.

	 	 	 
	/s/ Douglas A. Lentz
 

Douglas A. Lentz, Chief Operating Officer

	 	 
	 
	 	 
	This 2nd day of September, 2008.
	 	 
	 
	 	 
	/s/ Daniel McCue
 

Daniel McCue, Employee

	 	 

This 20th day of August, 2008.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]