Document:

Employment Agreement and Amendment to Employment dated 01/15/2002

EXHIBIT 10.3 
 
CONSULTING AND NONCOMPETITION AGREEMENT 
 
THIS AGREEMENT (“Agreement”) is made and entered into as of the 19th day of December, 2001,
to be effective as of January 6, 2002 (the “Effective Date”) by and between RAE & COMPANY a Georgia corporation (“Consultant”) and NEXT, INC. a Delaware corporation (together with its parent corporation and
present and future subsidiary or affiliated entities, the “Company”). 
 
W I T N E S S E T H: 
 
WHEREAS, Company desires to retain the services of Consultant, and Consultant desires to provide certain services for the Company, on the terms and conditions hereinafter set forth.

 
NOW, THEREFORE, in consideration of the premises
and the mutual promises and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows: 
 
1.    Consulting Services.    Subject to the terms hereof, Company will retain the
services of Consultant, and Consultant hereby agrees to provide Company with financial, accounting, cash management and other advice relating to the fiscal condition and operations of the Company. Consultant shall report to, and take directions
from, the Company’s Chairman of the Board. Consultant agrees to devote such time and efforts to the performance of the duties that Company may assign Consultant from time to time as may be necessary to complete such assignments on a timely
basis. 
 
2.    Term.    The term of this Agreement (the “Term”) shall be from the Effective Date until the earlier of (a) January 5, 2004 or (b) the occurrence of any of the following
events: 
 
(a)    The death or total disability of the principal owner of Consultant (total disability meaning the failure to fully perform normal required Services hereunder for a period of six (6) consecutive months during
any consecutive twelve (12) month period during the term hereof, as determined by an independent medical doctor jointly chosen by the Consultant and the Company by reason of mental or physical disability); or 
 
(b)    The termination by
Company of Consultant’s Services hereunder, upon seven (7) days prior written notice to Consultant, for “Company Cause”, as determined by the Company’s board of directors (“Board of Directors”). For purposes of this
Agreement, “Company Cause” for termination of Consultant’ s Services shall exist if (i) Consultant has engaged in conduct that is materially injurious to Company or an Affiliate (as hereinafter defined) of Company; (ii) if Consultant
has committed a fraud on, or misappropriation of the assets of, Company or an Affiliate of Company; (iii) if Consultant has been convicted of, pleads guilty or confesses to, or entered a plea of nolo contendere to, a crime that constitutes a felony;

(iv) or upon Consultant’s gross negligence or willful misconduct with respect to
Company or an Affiliate of Company; or 
 
(c)    The termination by Consultant of Consultant’s Services hereunder, upon seven (7) days prior written notice to the Company, for “Consultant Cause.” For purposes of this Agreement,
“Consultant Cause” for termination of Consultant’s Services shall exist (A) if Company has defaulted under the terms of this Agreement and has failed to cure such default within thirty (30) days of receipt from Consultant of written
notice of such default; (B) if Consultant’ s principal owner is required to relocate outside the state in which he is located as of the date of this Agreement; or (C) if there is a material decrease in the value of Consultant’s
compensation and benefits without Consultant’s prior written consent. 
 
As used in this Agreement, the term “Affiliate” with respect to any person shall mean any other person controlling, controlled by or under common control with such person and the term
“Control” shall mean the possession, directly or indirectly, of the power to direct the management and policies of a person whether through the ownership of voting securities, contract or otherwise. 
 
3.    Consulting Fee; Effect of
Termination; Independent Contractor Provisions. 
 
3.1    Consulting Fee, Expenses; Benefits.    Company will provide Consultant with the following salary, expense reimbursement and additional benefits during the Term of this
Agreement: 
 
(a)    During the Term, Consultant will be paid a consulting fee (the “Consulting Fee”) of One Hundred Ten Thousand and 00/100 Dollars ($110,000.00) per annum, plus an amount equal to an employee’ s
share of applicable withholding taxes were the Consulting Fee considered to be wages subject to withholding. The Consulting Fee shall be paid to Consultant on a monthly basis. Consultant shall be eligible for incentive compensation pursuant to an
incentive compensation arrangement approved by the Board of Directors in an amount not to exceed forty percent (40%) of the Consulting Fee. 
 
(b)    Company shall reimburse Consultant for all reasonable and necessary expenses incurred by
Consultant at the request of and on behalf of Company. In addition, Consultant shall be entitled to an automobile allowance of $1,000 per month. 
 
(c)    At Company’s option, Company will (i) arrange family health and hospitalization insurance
coverage for Consultant’s principal owner under its medical plan or (ii) reimburse Consultant the expense of such coverage. 
 
3.2    Effect of Termination.    If this Agreement is terminated prior to
the second anniversary date hereof pursuant to Sections 2(a) or (c) hereof, the Consultant shall be entitled to all compensation and benefits provided under Section 3.1 for six (6) months following the effective date of such termination (the
“Termination Date”). If the termination is pursuant to 
 

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Section 2(b) hereof, the Consultant shall be entitled only to compensation and benefits
earned or accrued under Section 3.1 through the Termination Date but from and after the Termination Date, no additional compensation or benefits shall be due to Consultant hereunder. 
 
3.3    Relationship.     The parties
acknowledge and agree that in the performance of Services hereunder, neither Consultant nor its principal owner are, and shall not be deemed to be, an agent or employee of the Company, but each is and shall for all purposes be deemed to be an
independent contractor. As an independent contractor, Consultant acknowledges and agrees that it has no power whatsoever to bind the Company in any manner. Consultant acknowledges and agrees that, as an independent contractor, the Consulting Fees as
provided in this Agreement are not subject to income tax withholding or social security withholding, all of which shall be the responsibility of Consultant. 
 
4.      Partial Restraint on Post-termination Competition. 
 
4.1    Definitions.    For the purposes of this Section 4, the following definitions shall apply: 
 
(a)    “Company Activities” means the business conducted by the
Company during the term of this Agreement, or by Company’s predecessor in interest prior to the date hereof, including the business of developing and selling roadway lighting systems, traffic signalization systems, communication systems,
surveillance and detection systems and intelligent transport systems. 
 
(b)    “Competitor” means any business, individual, partnership, joint venture, association, firm, corporation or other entity, other than the Company or subsidiaries,
engaged, wholly or partly, in Company Activities. 
 
(c)    “Competitive Position” means (i) the direct or indirect ownership or control of all or any portion of a Competitor; or (ii) any employment or independent contractor arrangement with any
Competitor whereby Consultant will serve such Competitor in any managerial capacity. 
 
(d)    “Confidential Information” means any confidential, proprietary business information
or data belonging to or pertaining to Company or any affiliate of Company and that is not generally known by or available through legal means to the public, including, but not limited to, information regarding Company’s Customers or acquisition
targets, suppliers, manufacturers and distributors. 
 
(e)    “Customer” means actual customers or prospective customers of Company. 
 
(f)    “Noncompete Period” or “Nonsolicitation Period” means the period beginning
the date hereof and ending on the second anniversary of the termination of Consultant’s employment with Company. 
 

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(g)    “Territory” means the area within a one hundred (100) mile radius of any corporate office or job site of Company or any of their subsidiaries, Affiliates or divisions in existence at any time
during the Noncompete Period. 
 
(h)    “Work Product” means any and all work product, property, data documentation or information of any kind, prepared, conceived, discovered, developed or created by Consultant for Company or any of
its Affiliates, or any of Company’s or its Affiliates’ clients or customers for utilization in Company Activities, not generally known by or not readily ascertainable by proper means by other persons who can obtain economic value from
their disclosure or use. 
 
4.2    Confidential Information. 
 
(a)    Consultant hereby agrees that with regard to any Confidential Information, during the Term and the Noncompete Period: 
 
(i)    Consultant shall
not, directly or by assisting others, own, manage, operate, join, control or participate in the ownership, management, operation or control of, or be connected in any manner with, any business conducted under any corporate or trade name of Company
or name similar thereto, without the prior written consent of Company; 
 
(ii)    Consultant shall hold in confidence all Confidential Information and will not, either directly or indirectly, use, sell, lend, lease, distribute, license, give, transfer,
assign, show, disclose, disseminate, produce, reproduce, copy, appropriate or otherwise communicate any Confidential Information, without the prior written consent of Company; and 
 
(iii)    Consultant shall immediately notify Company of any unauthorized
disclosure or use of any Confidential Information of which Consultant becomes aware. Consultant shall assist Company, to the extent necessary, in the procurement or any protection of Company’s rights to or in any of the Confidential
Information. 
 
(b)    Upon the request of Company and, in any event, upon the termination of Consultant’s employment with Company, Consultant shall deliver to Company all memoranda, notes, records, manuals and other
documents, including all copies of such materials and all documentation prepared or produced in connection therewith, pertaining to the performance of Consultant’s services hereunder or Company’s business or containing Confidential
Information, whether made or compiled by Consultant or furnished to Consultant. 
 
(c)    To the greatest extent possible, all Work Product shall be deemed to be “work made for hire” (as defined in the Copyright Act, 17 U.S.C.A. §§ 101 et
seq., as amended) and owned exclusively by Company. Consultant hereby unconditionally and 
 

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irrevocably transfers and assigns to Company all rights, title and interest Consultant may
have in or to any and all Work Product, including, without limitation, all patents, copyrights, trademarks, service marks and other intellectual property rights. Consultant agrees to execute and deliver to Company any transfers, assignments,
documents or other instruments which Company may deem necessary or appropriate to vest complete title and ownership of any and all Work Product, and all rights therein, exclusively in Company. 
 
4.3    Noncompetition. 
 
(a)    The parties hereto acknowledge that Consultant is conducting Company Activities throughout the Territory. Consultant acknowledges that to protect adequately the interest of
Company in the business of Company it is essential that any noncompete covenant with respect thereto cover all Company Activities and the entire Territory. 
 
(b)    Consultant hereby agrees that, during the Term and, thereafter, during the Noncompete Period,
Consultant will not, in the Territory, either directly or indirectly, alone or in conjunction with any other party, accept, enter into or take any action in conjunction with or in furtherance of a Competitive Position. Consultant shall notify
Company promptly in writing if Consultant receives an offer of a Competitive Position during the Noncompete Term, and such notice shall describe all material terms of such offer. 
 
Nothing contained in this Section 4 shall prohibit Consultant from acquiring not more than ten percent (10%)
of any company whose common stock is publicly traded on a national securities exchange or in the over-the-counter market. 
 
4.4    Nonsolicitation.    Consultant hereby agrees that Consultant will
not, during the Noncompete Period, either directly or indirectly, alone or in conjunction with any other party: 
 
(a)    solicit, divert or appropriate or attempt to solicit, divert or appropriate, any Customer for
the purpose of providing the Customer with services or products competitive with those offered by Company; or 
 
(b)    solicit or attempt to solicit any Consultant, consultant, contractor or other personnel of
Company or any of its Affiliates or subsidiaries to terminate, alter or lessen that party’s affiliation with Company or such Affiliate or subsidiary or to violate the terms of any agreement or understanding between such Consultant, consultant,
contractor or other person and Company. 
 
4.5    Binding Arbitration.    Any dispute whether or not the Consultant has violated the provisions of this Section 4 shall be resolved by binding arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association in Bexar County, Texas. Each of the Consultant and the Company shall select one arbitrator and pay the costs of the arbitrator selected by him or it and the two arbitrators so
selected shall select a third arbitrator. The cost of the third arbitrator and all other costs of the arbitration shall be 

 

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split equally between the Consultant and the Company, except for attorneys fees, which shall be paid by the party employing such attorney.

 
5.    Stock Options,
Purchases 
 
5.1    Options.    As additional consideration for the consulting services to be rendered hereunder, Company shall grant Consultant options to acquire Company common stock as follows:

 
(a)    Shares—200,000 
Option Price—$0.025 per share

Vesting—Two year vest in full 
Term—Five Years 
 
(b)    Shares—100,000 
Option Price—$1.00 per share 
Vesting—Ratably over five years 
Term—Ten years 
 
The foregoing options shall be granted pursuant to the Company’s Stock Plan and shall be governed by an Award Agreement to be entered
into by Company and Consultant. 
 
5.2    Purchase.    Contingent upon consummation of the Exchange Agreement dated December 21, 2001 (the “Exchange Agreement”) by and among Sporting Magic, Inc.
(“SMI”), Buddy Young, the Company, Danny F. Cooke, William B. Hensley III and the William B., III and Cindy S. Hensley Living Trust, Consultant shall purchase 750,000 shares of SMI common stock for $350,000, payable to Company as follows:
(a) $125,000 not later than seventy-two (72) hours prior to the scheduled consummation date of the transactions (the “Share Exchange”) contemplated under the Exchange Agreement and (b) $225,000 not later than ninety (90) days following the
consummation of the Share Exchange. 
 
6.    Miscellaneous 
 
6.1    Entire Agreement.    This Agreement (including the schedules) constitutes the sole understanding of the parties with respect to the subject matter
hereof. No amendment, modification or alteration of the terms or provisions of this Agreement shall be binding unless the same shall be in writing and duly executed by the parties hereto. 
 
6.2    Parties Bound by Agreement; Successors and
Assigns.    The terms, conditions and obligations of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors, heirs, assigns and personal representatives. Without
the prior written consent of the other parties hereto, neither party may not assign its rights, duties or obligations hereunder or any part thereof to any other person or entity. 
 

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6.3    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the
same instrument. 
 
6.4    Parties Bound by Agreement; Successors and Assigns.    The terms, conditions and obligations of this Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective successors, heirs, assigns and personal representatives. Without the prior written consent of the other parties hereto, neither party may not assign its rights, duties or obligations hereunder or any part thereof to any other
person or entity. 
 
6.5    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the
same instrument. 
 

	 	•	 	The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction hereof. 

 
6.7    Modification and Waiver.    Any of the terms or conditions of this Agreement may be waived in writing at any time by the party which is entitled to the benefits thereof. No waiver
of any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof (whether or not similar). 
 
6.8    Notices.    Any notice, request, instruction or other document to be
given hereunder by any party hereto to any other party hereto shall be in writing and delivered personally or by telecopy transmission or sent by registered or certified mail or by any express mail or overnight courier service, postage or fees
prepaid, 
 
If to the Company:

 
Next, Inc. 
6430 Cobble Lane 
Harrison, Tennessee 37341 
 
and if to Consultant to: 
 
RAE & Company 
2614 Hemingway Drive 
Nashville, Tennessee 37215 
 
or at such other address or number for a party as shall be specified by like notice. 
 
 

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Any notice which is delivered personally or by telecopy transmission in the manner provided herein shall be deemed to have been duly given to the party to whom it is directed upon actual receipt by such party or its agent. Any notice
which is addressed and mailed or sent by courier in the manner herein provided shall be conclusively presumed to have been duly given to the party to which it is addressed at the close of business, local time of the recipient, on the fourth business
day after the day it is so placed in the mail or, if earlier, the time of actual receipt. 
 

	 	•	 	This Agreement shall be construed in accordance with and governed by the laws of the State of Tennessee without giving effect to the principles of conflicts of law
thereof. No provision of this agreement or any related document shall be construed against or interpreted to the disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such party’ s having or
being deemed to have structured or drafted such provision. 

 

	 	•	 	Whenever reference is made in this Agreement to any section, schedule or exhibit, such reference shall be deemed to apply to the specified section of this Agreement
or the specified schedule or exhibit to this Agreement. 

 
6.11    Severability.    In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect, such provision
shall be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and permissible under, applicable law. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement which shall remain in full force and effect. 
 
[Signature Page to Follow] 
 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
 
Company: 
 

	 NEXT, INC.

	
	 By:
	 	 /s/    DANNY F.
COOKE        

	 	 	 Name: Danny F. Cooke
 Title: Chairman of the Board

 
Consultant: 
 

	 RAE & COMPANY

	
	 By:
	 	 /s/    CHARLES L.
THOMPSON        

	 	 	 Name: Charles L. Thompson
 Title: President

 
 

9Employment Agreement Dated December 19,2001

 
EXHIBIT 10.4

 
EMPLOYMENT AGREEMENT

 
THIS AGREEMENT has been made and entered
into as of the 19th day of December, 2001 by and between Next, Inc., a Delaware corporation (together with its
parent, and present and future subsidiaries and other affiliated entities, the “Company”) and David C. Gleason (the “Executive”). 
 
On the terms and conditions hereinafter set forth, the Company desires to employ the Executive, and the Executive desires to be employed
by the Company in connection with the operation of the business of the Company (the “Business”). 
 
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for other good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, the Company and the Executive agree as follows: 
 
1.    Stated Term.    This Agreement, unless terminated or cancelled as otherwise
provided herein, shall remain in full force and effect for a term of five (5) years from the date hereof, and, unless written notice is provided within ninety (90) days prior to an anniversary date hereof by the Company to Executive with the intent
to terminate this Agreement at the end of its then existing term, shall renew automatically on an annual basis on each anniversary date hereof for subsequent five (5)-year periods. 
 
2.    Duties.    During the term of employment set
forth in this Agreement, the Company shall employ the Executive, and the Executive shall serve, as executive vice president, operations. The Executive shall perform faithfully the duties assigned to the Executive by the Chairman of the Board of
Directors of the Company pursuant to this Agreement to the best of the Executive’s ability and shall devote substantially all of the Executive’s business time and attention to the Business. 
 
3.    Salary.    The Company shall pay to the Executive a salary at the rate of $115 per annum payable in accordance with the Company’s procedures for compensating
executives. The salary of the Executive shall be subject to annual review by the Board of Directors of the Company. 
 
4.    Incentive Compensation.    The Executive shall be entitled, to the extent the
Executive is otherwise eligible, to participate in executive incentive compensation plans established by the Company’s Board of Directors. 
 
5.    Benefits.    During the term of employment hereunder, Executive shall be
entitled, to the extent the Executive is otherwise eligible, to participate fully in all benefits provided by the Company for its employees. 
 
6.    Entertainment and travel expenses. 
 
(a)    Entertainment
Allowance.    Executive’s services shall include providing such entertainment as Executive deems to be in the business interests of the Company. In order to defray the expenses of such entertainment and of
maintaining necessary facilities, Company shall 

periodically provide Executive with an annual expense account mutually agreeable to the Company and Executive. 
 
(b)    Travel
Expenses.    When Executive travels, he shall submit bills for all necessary costs of transportation, communications, hotel accommodations, and the like. The Company shall promptly pay or reimburse these bills as corporate
expenses. 
 
7.    Automobile Expense.    The Company shall pay to the Executive on a monthly basis an automobile allowance in the amount of $750. The Executive shall insure his automobile and
provide proof thereof if requested. 
 
8.    Vacation.    The Executive shall be entitled to a paid vacation of fifteen working days each year. The timing of the Executive’s vacation shall be scheduled in a
reasonable manner by the Executive. 
 
9.    Benefits Under Existing or Subsequent Employment with the Company or Its Subsidiaries.    This Agreement shall not supersede or be deemed to be in lieu of any rights,
benefits and privileges to which Executive may be entitled as under any retirement, pension, profit-sharing, insurance, hospital or other plans or agreement which may now be in effect or which may hereafter be adopted by the Company. 
 
10.    Termination Before Expiration
of Stated Term.    This Agreement shall terminate prior to the expiration of its stated term upon the first to occur of the following: 
 
(a)    The voluntary resignation of the Executive for “Good Reason” which shall
mean any material breach by the Company of its obligations under this Agreement which is not corrected within 30 days of written notice to the Company by the Executive of the breach. 
 
(b)    The voluntary resignation of the Executive without Good Reason. 
 
(c)    The Executive’s death.

 
(d)    The Executive’s
permanent disability. The term “permanent disability” shall mean any mental or physical condition that renders Executive unable to perform the essential functions of his position, with or without reasonable accommodation, as is consistent
with the Americans with Disabilities Act and the Family and Medical Leave Act, for a period in excess of 90 consecutive days or more than 120 days during any period of 365 calendar days. 
 
(e)    The Executive’s employment being terminated by the Company for cause.
Termination “for cause” shall include, but shall not be limited to termination because of the Executive’s embezzlement, dishonesty, fraud, conviction of a felony or other charge involving moral turpitude, drug addiction or other
similar problem, improper communication of material confidential information, mismanagement, neglect of material duties and responsibilities, failure or refusal to perform specific directives of the Board of Directors, or the breach of a material
covenant in this Agreement by the Executive, which breach shall not have been corrected by the Executive within 10 days of the Executive’s receipt of written notice thereof. Termination for cause shall occur upon delivery to the Executive of a
written notice of such action by the Company, which written notice shall specify the ground for such termination. 
 

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(f)    The Executive’s employment being terminated by the Company without cause. Termination “without cause” shall mean termination of employment on any basis other than by expiration of the stated
term, voluntary resignation (with or without Good Reason), death, permanent disability, or termination for cause. 
 
11.    Duties of Executive on Termination.    Upon the termination of this
Agreement, the Executive shall immediately return any and all property of Company in the possession of the Executive, including, without limitation, all documents, contracts, financial information, customer information, proprietary product
information, records, equipment, computers, vehicles, etc. 
 
12.    Compensation Payable to Executive on Termination.    The rights of the Executive to compensation upon termination of employment are as follows: 
 
(a)    In the case of the expiration of
the stated term or the voluntary resignation of the Executive without Good Reason, the Company shall pay to the Executive any salary accrued on the date employment terminates. 
 
(b)    In the case of the death of the Executive, the Company shall pay to the
Executive’s beneficiary or beneficiaries designated in writing to the Company, or to the Executive’s estate in the absence or lapse of such designation: (i) the salary, as in effect at the date of the Executive’s death, through the
last day of the month in which death occurred; (ii) the pro rata portion of the incentive compensation payment, if any, described in Paragraph 4 of this Agreement accruing through the last day of the month in which the death occurred
(computed and payable within ninety (90) days after the end of the Company’s fiscal year; and (iii) per diem compensation (at the Executive’s then current salary level) for any accrued and unused vacation. 
 
(c)    In the case of the permanent
disability of the Executive, the Company shall pay to the Executive: (i) the salary, as in effect at the date of the Executive’s permanent disability, through the last day of the month in which such permanent disability is determined; (ii) the
pro rata portion of the incentive compensation payment, if any, described in Paragraph 4 of this Agreement accruing through the last day of the month in which the permanent disability is determined (computed and payable within ninety (90)
days after the end of the Company’s fiscal year; and (iii) per diem compensation (at the Executive’s then current salary level) for any accrued and unused vacation. 
 
(d)    If the Executive’s employment is terminated for cause, the Company shall pay
to the Executive any salary accrued on the date employment terminates. 
 
(e)    If the Executive’s employment is terminated by the Company without cause, or if the Executive voluntarily resigns for Good Reason, the Executive shall be entitled to receive: (i) the salary,
as in effect at the date of such termination, for six additional months after the date of termination (payable in a lump-sum cash payment due thirty (30) days following the termination of employment); (ii) the incentive compensation payment, if any,
described in Paragraph 4 of this Agreement accruing through a date six months after the date of termination, and (iii) per diem compensation (at the Executive’s then current salary level) for any accrued but unused vacation.
Additionally, the Company shall continue for a period of six months any and 

 

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all benefits, as described in Paragraph 5 of this Agreement, which the Executive or his family received as of the date of termination.
The Executive may, at his sole discretion elect to take a lump-sum payment from the Company equal to the present value of the benefits he would have received for this twelve-month period, payable within ten (10) days after demand. 
 
(f)    Unless otherwise specified above,
any payment due under Paragraph 12 shall be made in a lump sum, in cash within thirty (30) days after the termination of employment. 
 
13.    Covenant Not to Compete.    The Executive covenants and agrees that the
Executive will not, at any time during the term of this Agreement and, if the Executive voluntarily resigns from the Company without Good Reason or his employment is terminated by the Company for cause, for the specified periods following such
termination of employment, do any of the following (directly or indirectly) for the benefit of the Executive or for any other person, corporation, partnership or other entity: 
 
(a)    Manufacture or distribute products which are competitive with the products of the
Company. This restriction shall apply for 24 months following the voluntary resignation of the Executive without Good Reason or the termination of his employment for cause, and shall apply for six months following the termination of his employment
without cause. 
 
(b)    Sell,
solicit, or accept business or orders from customers or prospective customers of the Company with respect to products which are competitive with the products of the Company. It is agreed that “customer” shall mean any purchaser of products
from the Company at any time during the 24 months ending with the conclusion of the Executive’s services under this Agreement. This restriction shall apply for 24 months following the voluntary resignation of the Executive without Good Reason
or the termination of his employment for cause. 
 
(c)    Interfere with, disrupt or attempt to disrupt relationships, contractual or otherwise, between Company and its employees and contractors. This restriction shall apply for 24 months following the voluntary
resignation of the Executive without Good Reason or the termination of his employment for cause. 
 
Any breach of the provisions of Paragraph 12 of this Agreement shall automatically toll and suspend the period of restraint for the amount of time that the breach continues. 
 
14.    Intellectual
Property. 
 
(a)    Disclosure and Assignment.    Executive will promptly disclose in writing to the Company complete information concerning each and every invention, discovery, improvement, device,
design, apparatus, practice, process, method or product, whether patentable or not, made, developed, perfected, devised, conceived or first reduced to practice by Executive, either solely or in collaboration with others, during the Term, or within
six (6) months thereafter, whether or not during regular working hours, relating either directly or indirectly to the business, products, practices or techniques of the Company or any of its Affiliates (“Developments”). Executive, to the
extent that he has the legal right to do so, hereby acknowledges that any and all of the Developments are the property of the Company and hereby assigns and agrees to assign to 

 

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the Company any and all of Executive’s right, title and interest in and to any and all Developments. At the request of the Company,
Executive will confer with the Company and its representatives for the purpose of disclosing all Developments to the Company as the Company shall reasonably request during the period ending one year after termination of Executive’s employment
with the Company. 
 
(b)    Future Developments.    As to any future Developments made by Executive that relate to the business, products or practices of the Company, or any of its Affiliates, and that are
first conceived or reduced to practice during the Term, or within six (6) months thereafter, but which are claimed for any reason to belong to an entity or person other than the Company or any of its Affiliates, Executive will promptly disclose the
same in writing to the Company and shall not disclose the same to others if the Company, within twenty (20) days thereafter, shall claim ownership of such Developments under the terms of this Agreement. If the Company makes no such claim, Executive
hereby acknowledges that the Company has made no promise to receive and hold in confidence any such information disclosed by Executive. 
 
(c)    Limitation on Sections 14(a) and 14(b).    The provisions of Sections 14(a) and
14(b) shall not apply to any Development meeting the following conditions: 
 
(i)    such Development was developed entirely on Executive’s own time; 
 
(ii)    such Development was made without the use of any equipment, supplies, facility or trade
secret information of the Company or any of its Affiliates; 
 
(iii)    such Development does not relate (A) directly to the business of the Company or any of its Affiliates or (B) to the Company’s, or any of its Affiliate’s, actual
or demonstrably anticipated research or development; and 
 
(iv)    such Development does not result from any work performed by Executive for the Company or any of its Affiliates. 
 
(d)    Assistance of Executive.    Upon request and without
further compensation therefor, but at no expense to Executive, and whether during the Term or thereafter, Executive will do all lawful acts, including but not limited to, the execution of papers and lawful oaths and the giving of testimony, that, in
the opinion of the Company, may be necessary or desirable in obtaining, sustaining, reissuing, extending and enforcing United States and foreign patents, including but not limited to, design patents, on the Developments, and for perfecting,
affirming and recording the Company’s, or any of its Affiliate’s, complete ownership and title thereto, and to cooperate otherwise in all proceedings and matters relating thereto. 
 
(e)    Records.    Executive will keep complete, accurate and authentic accounts, notes, data and records of the Developments in the manner and form requested by the Company. Such
accounts, notes, data and records shall be the property of the Company, and, upon its request, Executive will promptly surrender the same to it or, if not previously surrendered upon its request or otherwise, Executive will surrender the same, and
all copies thereof, to the Company upon the conclusion of his employment. 
 

5 

 
(f)    Obligations, Restrictions and Limitations.    Executive understands that the Company, or its Affiliates, may enter into agreements or arrangements with agencies of the United
States Government, and that the Company, or its Affiliates, as applicable, may be subject to laws and regulations which impose obligations, restrictions and limitations on it with respect to inventions and patents which may be acquired by it or
which may be conceived or developed by Executives, consultants or other agents rendering services to it. Executive shall be bound by all such obligations, restrictions and limitations applicable to any such invention conceived or developed by him
during the Term and shall take any and all further action which may be required to discharge such obligations and to comply with such restrictions and limitations. 
 
(g)    Copyrightable Material.    All right, title and
interest in all copyrightable material that Executive shall conceive or originate, either individually or jointly with others, and which arise out of the performance of this Agreement, will be the property of the Company and are by this Agreement
assigned to the Company along with ownership of any and all copyrights in the copyrightable material. Upon request and without further compensation therefor, but at no expense to Executive, and whether during the Term or thereafter, Executive shall
execute all papers and perform all other acts necessary to assist the Company to obtain and register copyrights on such materials in any and all countries. Where applicable, works of authorship created by Executive for the Company in performing his
responsibilities under this Agreement shall be considered “works made for hire,” as defined in the U.S. Copyright Act. 
 
(h)    Know-How and Trade Secrets.    All know-how and trade secret information conceived
or originated by Executive that arises out of the performance of his obligations or responsibilities under this Agreement or any related material or information shall be the property of the Company, and all rights therein are by this Agreement
assigned to the Company. 
 
15.    Trade Secrets.    Except with the express written consent of the Company, the Executive will not, either during the term of this Agreement or anytime thereafter, directly
or indirectly, use or disclose for the benefit of the Executive or any other person, firm or entity, any of the trade secrets of the Company, whether or not said information was acquired, learned, obtained or developed by the Company alone or in
conjunction with others. For purposes of this Agreement, trade secrets shall mean that which is known only to the Company and those employees or other agents to whom it has been confided, and is by law the property of the Company, and shall include
all information relating to design and manufacturing procedures, techniques, programs, processes, methods, and marketing studies. It is the intent hereof that the Executive shall not divulge or use any such information which is unpublished or not
otherwise readily available to the public or which is not general information in the business of the Company. 
 
16.    Business Information.    Except with the Company’s express written
consent, the Executive agrees that he will not, either during the term of this Agreement or for a period of five years thereafter, directly or indirectly, use or disclose for the benefit of the Executive or the benefit of any other person, firm or
entity, any of the Company’s confidential or proprietary business information, whether or not said information was acquired, learned, obtained or developed by the Company alone or in conjunction with others. For purposes of this Agreement,
confidential or proprietary business information shall include, without limitation, any and all 

 

6 

information relative to the Company’s customers, suppliers, strategies, personnel practices, sales, costs and prices. It is the intent
hereof that the Executive shall not divulge or use any such information which is unpublished or not readily available to the general public. The Executive also makes the same pledge with regard to any confidential or proprietary business information
of the Company’s past or present customers, contractors or suppliers. 
 
17.    Discussion, Non-Binding Mediation and Arbitration. 
 
(a)    Discussion and Non-binding Mediation. Except for termination for Cause, the Company and Executive will each use
its good faith efforts to resolve any dispute between them promptly and amicably and without resort to any legal process, if feasible within forty-five (45) days of receipt of a written notice by one party to the other party of the existence of such
dispute. Within thirty (30) days of the receipt of such notice, one (1) officer of the Company and Executive will promptly meet in good faith to discuss such dispute. If such officer of the Company and Executive are unable to resolve such dispute
through negotiation within forty-five (45) days after the receipt of the initial notice of dispute, then, unless the parties otherwise mutually agree, the dispute will be submitted to non-binding mediation in Fayetteville, Arkansas in accordance
with the Commercial Mediation Rules of the American Arbitration Association, as modified herein. The parties will jointly appoint a mutually acceptable independent mediator, seeking assistance in such regard from the American Arbitration Association
or another mutually agreed-upon organization if they have been unable to agree upon such appointment within 20 days from the conclusion of the negotiation period. The parties agree to participate in good faith in the mediation and negotiations
related thereto for a period of 30 days following the appointment of a mediator. If the parties are not successful in resolving the dispute through the mediation by the end of such 30-day period, then the dispute will be resolved through binding
arbitration. 
 
(b)    Arbitration. Except for termination for Cause, any dispute or claim arising out of or relating to this Agreement or the validity, interpretation, enforceability or breach of this Agreement, which is not
settled, will be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect, as amended by the following: 
 
(i)    The Arbitral Tribunal will be composed of three arbitrators. Each
party will appoint one arbitrator and the two arbitrators so appointed will appoint the Chairman of the Arbitral Tribunal who must be a retired judge. Failing the appointment of the arbitrator, or the Chairman within 30 days, the Board of
Arbitration of the American Arbitration Association will appoint such arbitrator. 
 
(ii)    All arbitration proceedings will be located in (Anywhere USA). 
 
(iii)    Unless the
Arbitral Tribunal finds that exceptional circumstances require otherwise, the Arbitral Tribunal will include in the award the prevailing parties cost of arbitration and reasonable attorneys fees. 
 
(iv)    The award
rendered in the arbitration will be final and binding and may be enforced in any court of competent jurisdiction. 
 

7 

 
(v)    Each party will be entitled to discovery by request for admission, by request for production of documents and by depositions of not more than five individuals but by no other means. 
 
18.    Damages and Specific
Performance.    The Executive expressly recognizes that any breach of the provisions of this Agreement is likely to result in irreparable injury to the Company and that money damages may not adequately compensate the
Company for such breach. Therefore, the Executive agrees that the Company shall be entitled, if it so elects, to institute and prosecute proceedings in any court of competent jurisdiction not only to obtain damages for any breach of this Agreement,
but also to enforce the specific performance of this Agreement by the Executive and to enjoin Executive from activities in violation of this Agreement. 
 
19.    Attorney Fees and Other Costs.    If any legal action or other proceeding is
brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provision of this Agreement, the prevailing party shall be entitled to recover reasonable attorney fees as
well as court costs and all expenses not taxable as court costs. This remedy shall include, without limitation, all such fees, costs and expenses incident to appeals. 
 
20.    No Waiver of Breach.    The failure of a party
to require the performance of a provision of this Agreement shall not constitute a waiver of a subsequent breach or nullify the effect of such provision. 
 
21.    Governing Law.    This Agreement shall be construed in accordance with the
laws of the State of Indiana. 
 
22.    Notices.    Any notice required or permitted herein shall be in writing and shall be mailed, postage prepaid, or sent by overnight courier, properly addressed to the other
party at the address set forth below, subject to change by written notice of either party to the other: 
 
Company: 
 
Next, Inc. 
6430 Cobble Lane 
Harrison, TN 37341 
 
Executive: 
 
David C. Gleason 
 

	 	

 

	 	

 

	 	

 
Any notice shall be considered given when deposited in the U.S. Mail or delivered to an overnight courier. 
 

8 

 
23.    Survival of Obligations.    All covenants, agreements, representations and warranties made herein or otherwise made in writing by either party to this Agreement shall
survive the execution and delivery of this Agreement and the performance of the services contemplated hereby. 
 
24.    Severability.    If any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to time, duration, geographical scope, activity or subject, it shall be construed, by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable
law as it shall then appear. If, moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not
affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained therein. 
 
25.    Entire and Binding Agreement.    This Agreement
constitutes the full and complete understanding and agreement of the parties with respect to the employment of the Executive by the Company and supersedes all prior understandings and agreements regarding the Executive’s employment. This
Agreement may be modified only by a written instrument executed by both parties. This Agreement shall continue to be binding upon the Company in the event of the sale of either (i) a controlling equity interest in the Company or (ii) all or
substantially all of the assets and business of the Company. 
 
26.    Payments to the Executive.    Any payments to the Executive, his estate or designated beneficiary pursuant to the terms of this Agreement shall be reduced by such amounts
as are required to be withheld under all present and future federal, state, and local tax and other laws and regulations. 
 
27.    Captions.    The section headings contained herein are for reference and
convenience only, and shall not affect the construction of any provision of this Agreement. 
 
28.    Counterparts.    This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original hereof, but together such counterparts shall constitute but one and the same instrument. 
 
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
 
 

	 	 	 	 	 The Company:

	
	 	 	 	 	 Next, Inc

	
	 	 	 	 	 By:
	 	 /s/    WILLIAM B. HENSLEY
III

	 	 	 	 	 	 	 Title:
	 	 William B. Hensley III, CEO

	
	 	 	 	 	 	 	 Executive:

	
	 	 	 	 	 	 	 /s/    DAVID C. GLEASON

	 	 	 	 	 	 	 	 	 David C. Gleason

 
 

9

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