Document:

Galenfeha, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

AGREEMENT AND PLAN OF ACQUISITION 
by and between

GALENFEHA, INC. 
and 
DAYLIGHT PUMPS, LLC 
Dated as
of March 21st, 2015 

TABLE OF CONTENTS 

	  	  	Page 
	ARTICLE
      I – THE OFFER 	1
      
	1.1
      	The
      Offer 	1
      
	1.2
      	Seller
      Actions 	2
      
	  	  	  
	ARTICLE
      II – THE ACQUISITION 	2
      
	2.1
      	The
      Acquisition 	2
      
	2.2
      	Closing;
      Effective Time 	2
      
	2.3
      	Effects
      of the Acquisition 	2
      
	2.4
      	Certificate
      of Incorporation and Bylaws 	2
      
	2.5
      	Directors
      and Officers 	3
      
	  	  	  
	ARTICLE
      III – REPRESENTATIONS AND WARRANTIES OF PARENT 	3
      
	3.1
      	Corporate
      Organization 	3
      
	3.2
      	Authority
      	3
      
	3.3
      	Consents
      and Approvals 	3
      
	3.4
      	Broker’s
      Fees 	3
      
	3.5
      	Legal
      Proceedings 	3
      
	3.6
      	Available
      Funds 	3
      
	3.7
      	No
      Other Representations or Warranties 	4
      
	  	  	  
	ARTICLE
      IV – REPRESENTATIONS AND WARRANTIES OF SELLER 	4
      
	4.1
      	Corporate
      Organization 	4
      
	4.2
      	Capitalization
      	4
      
	4.3
      	Assets
      	4
      
	4.4
      	Authority
      	4
      
	4.5
      	No
      Violation; Required Filings and Consents 	4
      
	4.6
      	Financial
      Statements 	5
      
	4.7
      	Broker’s
      Fees 	5
      
	4.8
      	Absence
      of Certain Changes or Events 	5
      
	4.9
      	Legal
      Proceedings 	5
      
	4.10
      	Absence
      of Undisclosed Liabilities 	5
      
	4.11
      	Permits;
      Compliance with Applicable Laws and Reporting Requirements 	5
      
	4.12
      	Taxes
      and Tax Returns 	5
      
	4.13
      	Employee
      Benefit Programs 	5
      
	4.14
      	Labor
      and Employment Matters 	6
      
	4.15
      	Material
      Contracts 	6
      
	4.16
      	Properties
      	6
      
	4.17
      	Environmental
      Liability 	7
      
	4.18
      	State
      Takeover Laws 	7
      
	4.19
      	Insurance
      	7
      
	4.20
      	Customers
      	7
      
	4.21
      	Opinion
      of Financial Advisor 	7
      
	4.22
      	No
      Other Representations or Warranties 	7
      
	4.23
      	Definition
      of Seller’s Knowledge 	8
      
	  	  	  
	ARTICLE
      V – COVENANTS RELATING TO CONDUCT OF BUSINESS 	8
      
	5.1
      	Conduct
      of Business Pending the Effective Time 	8
      
	5.2
      	Certain
      Tax Matters 	8
      

i 

	ARTICLE
      VI – ADDITIONAL AGREEMENTS 	8
      
	6.1
      	Access
      to Information 	8
      
	6.2
      	Additional
      Agreements 	9
      
	6.3
      	Advice
      of Changes 	9
      
	6.4
      	Publicity
      	9
      
	  	  	  
	ARTICLE
      VII – CONDITIONS PRECEDENT TO THE CONSUMMATION OF THE ACQUISITION
    	9
      
	7.1
      	Conditions
      	9
      
	  	  	  
	ARTICLE
      VIII – TERMINATION, AMENDMENT AND WAIVER 	9
      
	8.1
      	Termination
      	9
      
	8.2
      	Effect
      of Termination 	9
      
	  	  	  
	ARTICLE
      IX - MISCELLANEOUS 	10
      
	9.1
      	Expenses
      	10
      
	9.2
      	Notices
      	10
      
	9.3
      	Interpretation
      	10
      
	9.4
      	Counterparts
      	10
      
	9.5
      	Entire
      Agreement 	10
      
	9.6
      	Governing
      Law; Jurisdiction and Venue; WAIVER OF JURY TRIAL 	10
      
	9.7
      	Severability
      	11
      
	9.8
      	Assignment;
      Reliance of Other Parties 	11
      
	9.9
      	Specific
      Performance 	11
      
	9.10
      	Definitions
      	11
      
	  	  	  
	SIGNATURE
      PAGE 	14
      

ii 

AGREEMENT AND PLAN OF AQUISITION 

     AGREEMENT AND PLAN OF ACQUISITION (the “Agreement”),
dated as of March 21st, 2015, by and among Galenfeha, Inc., a Nevada
corporation (“Parent”) and Daylight Pumps, LLC a corporation organized under the
laws of the State of Arkansas (“Seller”) 

     WHEREAS, the board of directors of Parent and directors
and officers of Seller have approved the acquisition of Seller by Parent on the
terms and conditions set forth in this Agreement; 

     WHEREAS, pursuant to this Agreement, and subject to the
terms and conditions set forth herein, Galenfeha, Inc. has agreed to commence a
cash offer (the “Offer”) to purchase all of Seller business entity and
fixed assets (“Seller Assets”), for a total cash offer price of $135,000
(“Offer Price”); 

     WHEREAS, the Offer Price constitutes the option of
accepting stock in replacement of cash for the officers of Seller set forth in
the following descriptions: 

Warren T. Robertson – Partner/Daylight Pumps, LLC 

	 	•	
      $5,300 total cash paid on or before April 1, 2015 based
      upon agreement of cash valuation for percentage balance of inventory
      assets, and $53,000 total cash paid for percentage of Business Enterprise
      valuation in four installments in the amount of $13,250 by the end of each
      quarter beginning April 1, 2015. 

	 	•	
      132,500 total shares of Galenfeha, Inc. stock, issued
      quarterly in the amount of 33,125 shares beginning April 1, 2015 for
      remaining percentage valuation of Business Enterprise

Wayne Hightower – Partner/ Daylight Pumps, LLC 

	 	•	
      47,000 shares of Galenfeha stock issued on or before
      April 1, 2015 for percentage balance of inventory. 

	 	•	
      587,500 shares of Galenfeha, Inc. stock, issued quarterly
      in the amount of 146,875 shares beginning April 1, 2015 for remaining
      percentage valuation of Business Enterprise. 

These combined agreements institute a total share issuance of
767,000 shares at $.10 per share for a total valuation of $76,700 with the
addition of a cash payout for the Acquisition of $58,300 for a total of
$135,000. 

WHEREAS, following consummation of the Offer, upon the
terms and conditions set forth herein, Daylight Pumps, LLC will be acquired by
the Parent, (“Acquisition” and, with the Offer, the
“Transaction”), whereby Parent will have the right to receive free and
clear title ownership to Seller Assets, whereby placing title into Parent; 

     WHEREAS, the Seller’s Officers shall continue to conduct
ordinary course of business from the date of this Agreement and after the
completion of this Agreement and subsequent Transactions with reasonable efforts
from Parent to provide management, operating and technical assistance to the
operator of Seller; 

     WHEREAS, the Seller directors and officers have
unanimously (i) determined and declared that this Agreement, the Offer and the
Acquisition are advisable and in the best interests of Seller, (ii) approved the
Offer and the Acquisition in accordance with the General Corporation Law of the
State of Arkansas, (“ARGCL”) and (iii) adopted this Agreement, and (iv)
recommended that the Seller accept the Offer, extend full ownership of all
Seller Assets into the Offer for the purpose of Repayment and free and clear
title of ownership by Parent, and if required by applicable Law, adopt and
approve this Agreement; 

     WHEREAS, as an inducement and condition to Parent
entering into this Agreement, certain directors and executive officers of Seller
are entering into support agreements (collectively, the “Support
Agreements”) with Parent and with the execution of this Agreement, whereby,
among other things, such directors and officers have agreed, upon the terms and
subject to the conditions set forth therein, to extend full ownership of Seller
Assets whether held directly by Seller or its directors and officers on behalf
of Seller in the Offer and to support the actions necessary to consummate the
Acquisition; and 

     WHEREAS, the parties desire to make certain
representations, warranties and agreements in connection with the Transaction
and to prescribe certain conditions to the Transaction. 

     NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants, representations, warranties and agreements contained
herein, and intending to be legally bound hereby, the parties agree as follows:

ARTICLE I – THE OFFER 

1.1     The Offer.

     (a) Provided that this Agreement shall
not have been terminated by a mutual agreement by the Parent board and the
Seller directors and officers, as promptly as is reasonably practicable (but in
no event later than March 31, 2015) after the date of this Agreement, Parent
shall commence an offer to purchase all Seller Assets at the Offer Price and
shall use its reasonable best efforts to consummate the Offer, subject to the
terms and conditions hereof and thereof. Subject to the terms and conditions of
this Agreement, Parent shall purchase from Seller, (after giving effect to any
required withholding Tax), all Seller Assets validly presented pursuant to the
Offer and not withdrawn (the time and date of acceptance for payment, the
“Acceptance Date”). 

     (b) Parent reserves the right to
modify, in whole or in part, the terms of the Offer, with written consent of the
Seller. The Offer shall remain open until 12:00 midnight, Ft. Worth, Texas time,
on the date that is twenty (20) Business Days after the commencement of the
Offer (the “Expiration Date”), unless Parent shall have extended the
period of time for which the Offer is open pursuant to, and in accordance with,
the succeeding sentence or as may be required by applicable Laws, in which event
the term “Expiration Date” shall mean the latest time and date as the
Offer, as so extended, may expire; provided, however, that Parent
may provide a subsequent offering period for an additional 30 calendar days (and
one or more extensions thereof) after the Expiration Date, in accordance with
applicable Laws. Nothing contained in this paragraph shall affect any
termination rights of the parties in Article VIII. 

     (c) On the date of commencement of the
Offer, Parent shall make all other filings or recordings required by the
Securities and Exchange Commission (“SEC”) with respect to the Offer
which shall contain the offer to purchase and related letter of transmittal and
summary advertisement and other ancillary documents and instruments required
thereby pursuant to which the Offer will be made and cause the Offer Documents
to be disseminated to Seller directors and officers giving reasonable
opportunity to review and comment on the Offer Documents prior to their filing
with the SEC, and Parent agree to provide Seller with any comments or other
communications, whether written or oral, that may be received from the SEC or
its staff with respect to the Offer Documents promptly after receipt thereof and
prior to responding thereto, and a reasonable opportunity to provide comments on
that response (to which reasonable and good faith consideration shall be given).
If at any time prior to the Effective Time, any information relating to the
Offer, the Acquisition, Seller, Parent, or any of their respective Affiliates,
should be discovered by Seller or Parent which should be set forth in an
amendment or supplement to the Offer Documents, so that the Offer Documents
shall not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made, not
misleading, the party which discovers such information shall promptly notify the
other party, and an appropriate amendment or supplement describing such
information shall be filed with the SEC and disseminated to the Seller directors
and officers, as and to the extent required by applicable Law. 

     (d) Parent shall provide or cause to
be provided to Seller on a timely basis the funds necessary to pay for Seller
Assets that Parent becomes obligated to purchase pursuant to the Offer and shall
cause Parent to fulfill its obligations under this Agreement. 

1.2     Seller
Actions. 

     (a) Seller directors and officers
hereby represent, that the Seller directors and officers, at a meeting duly
called and held at which a quorum was present throughout, has unanimously (i)
determined that the Transaction, and each of the Offer and the Acquisition, is
advisable and in the best interests of Seller, (ii) approved the Offer, the
Acquisition and this Agreement in accordance with the ARGCL, (iii) recommended
acceptance of the Offer extend full ownership of all Seller Assets into the
Offer for the purpose of Repayment and free and clear title of ownership of
tangible assets by Parent, and if required by applicable Law, adopt and approve
this Agreement; 

     (b) In connection with the Offer,
Seller will promptly furnish Parent with managerial meeting minutes as of March
1, 2015, financial and Tax reports, active contracts or agreements for normal
course of business and a computer list containing the names and addresses and
contractual details for the companies, Persons or Person with a revenue
generating contractual relationship with Seller as of the most recent
practicable date, and shall furnish Parent with such additional available
information and such other assistance as Parent or its agents may reasonably
request. Subject to the requirements of applicable Laws, and except for such
steps as are necessary to disseminate the Offer Documents and any other
documents necessary to consummate the Acquisition, Parent, and their
Representatives, shall keep such information confidential and use the
information contained in any such listings and files only in connection with the
Offer and the Acquisition and, should the Offer terminate or if this Agreement
shall be terminated, will promptly deliver to Seller all copies of such
information then in their possession. 

ARTICLE II – THE AQQUISITION 

2.1     The
Acquisition. Upon the terms and subject to the satisfaction or
waiver of the conditions set forth in this Agreement, and in accordance with the
ARGCL, at the Effective Time, Seller shall be acquired by Parent upon
acquisition of Seller Assets. 

2.2    
Closing; Effective Time. Subject to the terms and
conditions of this Agreement, the closing of the Acquisition (the
“Closing”) will take place at the offices of Galenfeha, Inc., 420
Throckmorton Street, Suite 200, Ft. Worth Texas, unless another place is agreed
to in writing by the parties hereto, at 10:00 a.m., local time, on a date (the
“Closing Date”) specified by the parties, which shall be no later than
two (2) Business Days after the satisfaction or waiver (subject to applicable
Law) of the latest to occur of the conditions set forth here within, unless this
Agreement has been theretofore terminated pursuant to its terms or unless
extended by mutual agreement of the parties. As soon as practicable after the
satisfaction or waiver of the conditions set forth, the Acquisition shall become
effective upon the filing with the Secretary of State of the State of Arkansas a
certificate of Acquisition or other appropriate document (the “Certificate of
Acquisition”), and the parties shall make all other filings or recordings
required by the ARGCL and the SEC. The term (“Effective Time”) shall be
the date and time when the Acquisition becomes effective. 

2.3     Effects
of the Acquisition. 

     (a) At and after the Effective Time,
the Acquisition shall have the effects set forth in this Agreement and in the
appropriate provisions of the ARGCL. Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time, the Acquisition of the
Seller by the Parent shall use maintain the name Daylight Pumps as the Parent
sees appropriate, and as such continue ordinary course of business; manage all
licenses, leases, legally enforceable rights to use, all material service names,
domain names, and logos used in the respective business, continue to provide SOP
to certain officers of Seller, maintain contractual agreements with independent
contractors, and uphold positions and duties of officers and all other Seller
Personnel necessary to carry on business as is currently being conducted. 

     (b) Seller will conduct business
within its ordinary course; however Seller will not enter into any capital
commitment relating to the business or incur or assume any liability in
connection with the business, other than in the normal and usual course of
business, without prior written consent of the Parent, such consent not to be
unreasonably withheld or delayed. Seller will not vary any of their vendor
contracts or agreements and will continue to observe and perform all of its
obligations and duties under these contracts or agreements unless written
notification is provided to Parent regarding such variances. 

     (c) Parent shall use reasonable
efforts to provide management, operating and technical assistance to the
Seller’s operator during the interim period of this Agreement. 

2.4    
Certificate of Incorporation and Bylaws. At the
Effective Time, the Certificate of Incorporation, as amended, of Seller, as in
effect immediately prior to the Effective Time, shall be amended in order to
reflect the provisions outlined in this agreement in accordance with the
applicable laws of the State of Arkansas.

2.5    
Directors and Officers. Subject to compliance with
applicable Laws, from and after the Effective Time, the directors and officers
of Seller shall continue to hold office until their successors shall have been
duly elected, appointed or qualified or until their earlier death, resignation
or removal in accordance with the Seller Corporate Charter and the Seller
Bylaws. 

ARTICLE III – REPRESENTATIONS AND WARRANTIES OF PARENT

Parent hereby represent and warrant to Seller as follows: 

3.1    
Corporate Organization. 

     (a) Parent is a Nevada corporation
duly organized, validly existing and in corporate good standing under the laws
of Nevada. 

     (b) Parent has all requisite corporate
power and authority and all necessary governmental approvals to own, lease and
operate all of its properties and assets and to carry on its business as it is
now being conducted. Parent is duly licensed or qualified to do business and is
in corporate good standing in each jurisdiction in which the nature of the
business conducted by it or the character or location of the properties and
assets owned, leased or operated by it makes such licensing or qualification
necessary, except where the failure to be so licensed or qualified and in
corporate good standing would not, either individually or in the aggregate,
reasonably be expected to have a Parent Material Adverse Effect. The certificate
of incorporation and bylaws of Parent, copies of which have previously been made
available to Seller, are true, correct and complete copies of such documents as
currently in effect. 

3.2    
Authority. Parent has all requisite corporate power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby and perform its obligations hereunder. The
adoption, execution, delivery and performance of this Agreement and the approval
of the consummation of the transactions contemplated hereby have been
recommended by, and are duly and validly authorized by all necessary action of
Parent. No other corporate proceedings on the part of Parent are necessary to
authorize the adoption, execution, delivery and performance of this Agreement or
to consummate each of the Offer, the Acquisition and the other Transactions
contemplated hereby. This Agreement has been duly and validly executed and
delivered by Parent, and (assuming due authorization, execution and delivery by
Seller), constitutes the valid and binding obligations of Parent, enforceable
against Parent in accordance with its terms. 

3.3    
Consents and Approvals. None of the execution, delivery
or performance of this Agreement by Parent, the consummation by Parent of the
transactions contemplated hereby, including the Offer and the Acquisition, or
compliance by Parent with any of the provisions hereof will (i) conflict with or
result in any breach of any provision of the organizational documents of Parent,
(ii) require Parent to make any filing with, give any notice to, or obtain any
permit, authorization, consent, or approval of, any Governmental Authority,
(iii) result in a violation or breach of, or constitute (with or without due
notice or lapse of time or both) a default (or give rise to any right of
termination, cancellation or acceleration) under, any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, lease, license, contract,
agreement or other instrument or obligation to which Parent, as the case may be,
is a party or by which it or any of their respective properties or assets may be
bound, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Parent or any of their respective properties or assets,
excluding from the foregoing clauses (ii), (iii) and (iv) such filings, notices,
permits, authorizations, consents, approvals, violations, breaches or defaults
that would not, individually or in the aggregate, (A) prevent or materially
delay consummation of the Offer or the Acquisition, (B) otherwise prevent or
materially delay performance by Parent of the respective material obligations
under this Agreement, or (C) have a Parent Material Adverse Effect. 

3.4    
Broker’s Fees. Parent nor any of the respective
officers, directors, employees or agents has employed any broker, finder or
financial advisor or incurred any liability for any fees or commissions in
connection with any of the transactions contemplated by this Agreement except
for fees and commissions incurred in connection with the engagement of legal,
accounting or other professional services payable in connection with the
Acquisition, all of which will be paid by Parent. 

3.5     Legal
Proceedings. There is no claim, suit, action, proceeding or
investigation of any nature pending or, to the knowledge of Parent, threatened,
against Parent, challenging the validity or propriety of the transactions
contemplated by this Agreement, which, if adversely determined, would, either
individually or in the aggregate, reasonably be expected to have a Parent
Material Adverse Effect. 

3.6    
Available Funds. Parent has, and at each of the
Acceptance Date and the date of the Effective Time will have, sufficient cash,
available lines of credit or other sources of immediately available funds to
enable it to pay the aggregate Offer Price and the aggregate Acquisition
Consideration in full as well as to make all other required payments payable in
connection with the transactions contemplated hereby. 

3.7     No
Other Representations or Warranties. Except for the representations
and warranties contained herewithin, none of Parent, or any other Person on
behalf of Parent makes any express or implied representation or warranty with
respect to Parent or with respect to any other information provided to Seller in
connection with the transactions contemplated hereby. None of Parent or any
other Person on behalf of Parent shall be held liable for damage, liability or
loss resulting from the distribution to Seller, or Seller’s use of, any such
information, including any information, documents, projections, forecasts or
other material made available to Seller in expectation of the transactions
contemplated by this Agreement, unless any such information is expressly
included in a representation or warranty contained herewithin. 

ARTICLE IV – REPRESENTATIONS AND WARRANTIES OF SELLER

Seller hereby represents and warrants to Parent as follows:

4.1     Corporate
Organization. 

     (a) Seller is a corporation duly
organized, validly existing and in corporate good standing under the laws of the
State of Arkansas. 

     (b) Seller has all requisite corporate
power and authority to own, lease or operate all of its properties and assets
and to carry on its business as it is now being conducted. Seller is duly
licensed or qualified to do business and is in corporate good standing in each
jurisdiction in which the nature of the business conducted by it or the
character or location of the properties and assets owned, leased or operated by
it makes such licensing or qualification necessary, except where the failure to
be so licensed or qualified and in corporate good standing has not and would not
reasonably be expected to have, a Seller Material Adverse Effect. The
Certificate of Incorporation and the Bylaws or equivalent organizational
documents of Seller, copies of which have previously been made available to
Parent, are true, correct, and complete copies of such documents as currently in
effect. 

4.2    
Capitalization. Since its origination, Seller
hereby represents that it does not have a share structure established nor has it
ever authorized, issued, or registered any shares. 

4.3    
Assets. Seller has fixed assets in the form of
materials used in the manufacture of chemical injection pumps valued at
approximately $10,000 and a Business Enterprise valued at approximately
$125,000. All Seller Assets are wholly owned by Seller and/or its directors and
officers and having been duly authorized, validly obtained, fully paid or
financed, and are assessed at approximate values.

4.4    
Authority. Seller has all requisite corporate power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby and perform its obligations hereunder,
including the Offer and the Acquisition, subject to obtaining the approval of
the Seller directors and officers to adopt and approve this Agreement. The
adoption, execution, delivery and performance of this Agreement and the approval
of the consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of Seller and no other
corporate proceedings on the part of Seller are necessary to authorize the
adoption, execution, delivery and performance of this Agreement or to consummate
each of the Offer and the Acquisition and the other transactions contemplated
hereby, except for the adoption and approval of this Agreement by the Seller
directors and officers and the filing of the Certificate of Acquisition with the
State of Arkansas. The Seller directors and officers have unanimously (i)
determined and declared that this Agreement, the Offer and the Acquisition are
advisable and in the best interests of Seller, (ii) approved the Offer and the
Acquisition in accordance with the ARGCL, and (iii) adopted this Agreement, and
(iv) recommended that the Seller accept the Offer, extend full ownership of all
Seller Assets into the Offer for the purpose of Repayment and free and clear
title of ownership by Parent, and if required by applicable Law, adopt and
approve this Agreement. This Agreement has been duly and validly executed and
delivered by Seller and (assuming due authorization, execution and delivery by
Parent) constitutes the valid and binding obligations of Seller, enforceable
against Seller in accordance with its terms. 

4.5     No
Violation; Required Filings and Consents. Assuming the adoption and
approval of this Agreement by the Seller directors and officers and except for
filings, permits, authorizations, consents and approvals, and for the
termination or expiration, as applicable, none of the execution, delivery or
performance of this Agreement by Seller, the consummation by Seller of the
transactions contemplated hereby, including the Offer and the Acquisition, or
compliance by Seller with any of the provisions hereof will (i) conflict with or
result in any breach of any provision of the organizational documents of Seller,
(ii) require Seller to make any filing with, give any notice to, or obtain any
permit, authorization, consent or approval of, any Governmental Authority, (iii)
(A) require Seller to give any notice to, or obtain any consent from, any Person
under, or (B) result in a violation or breach of, or constitute (with or without
due notice or lapse of time or both) a default (or give rise to any right of
termination, modification, cancellation or acceleration) under, any of the
terms, conditions or provisions of any material note, bond, mortgage, indenture,
lease, license, contract, agreement or other instrument or obligation to which
Seller is a party or by which it or any of its properties or assets may be
bound, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Seller or any of its properties or assets, excluding
from the foregoing clauses (ii), (iii) and (iv) such filings, notices, permits,
authorizations, consents, approvals, violations, breaches, defaults or rights of
termination, cancellation or acceleration that, would not, individually or in
the aggregate, (A) prevent or materially delay consummation of the Offer and the
Acquisition, (B) otherwise prevent or materially delay performance by Seller of
its material obligations under this Agreement, or (C) reasonably be expected to
have a Seller Material Adverse Effect. 

4.6    
Financial Statements. Seller financial statements
(including, in each case, any notes thereto) (the “Seller Financial
Statements”) made available by the Seller to the Parent, (i) has been
prepared from and in accordance with and accurately reflects the books and
records of Seller in all material respects, (ii) has been prepared in accordance
with United States generally accepted accounting principles (“GAAP”)
applied (except as may be indicated in the notes thereto) on a consistent basis
throughout the periods indicated (except as may be indicated in the notes
thereto), and (iii) each presents fairly in all material respects the financial
position, results of operations and cash flows of Seller. 

4.7     Broker’s Fees.
Neither Seller nor any of its officers, directors, employees, or agents has
employed any broker, finder or financial advisor or incurred any liability for
any fees or commissions in connection with any of the transactions contemplated
by this Agreement (including the Offer and the Acquisition), except for fees and
commissions incurred in connection with the engagement of legal, accounting or
other professional services payable in connection with the transactions
contemplated hereby, all of which will be paid by Seller. 

4.8     Absence of Certain
Changes or Events. Since March 1, 2015, (a) Seller has conducted its
respective business in all material respects in the ordinary course consistent
with their past practice, (b) other than as a result of the transactions
contemplated by this Agreement, there has not been: (i) any adverse change in
the financial condition, backlog, operations or business of Seller that would
reasonably be expected to have a Seller Material Adverse Effect; (ii) any
damage, destruction, or loss to the business or properties of Seller (whether or
not covered by insurance) that would reasonably be expected to have a Seller
Material Adverse Effect; (iii) any labor dispute (other than routine
grievances); (iv) any increase in compensation, bonus, deferred compensation, or
other consideration of any employee or director other than in the ordinary
course of business consistent with past practice, (v) transfer, sell, lease,
sublease or license or otherwise dispose of any material assets or properties of
Seller other than in the ordinary course of business consistent with past
practice, (vi) write down or write up the value of any receivable or revalue any
assets of Seller other than in the ordinary course of business consist with past
practice, or (vii) settle, pay or discharge any litigation, investigation, or
arbitration, other than the settlement, payment, discharge or satisfaction in
the ordinary course of business consistent with past practice, and (c) there has
not been any change, circumstance or event which has had, or would reasonably be
expected to have, individually or in the aggregate, a Seller Material Adverse
Effect. 

4.9     Legal
Proceedings. There is (a) no suit, claim, action, arbitration,
investigation of a Governmental Authority, alternative dispute resolution action
or any other judicial, administrative or arbitral proceeding pending or, to the
knowledge of Seller, threatened against Seller or, to the knowledge of Seller,
any executive officer or director of Seller (in their capacity as such), and (b)
to the knowledge of Seller, any executive officer or director of Seller (in
their capacity as such), is subject to any outstanding order, writ, judgment,
injunction or decree of any Governmental Authority, which, in the case of (a) or
(b), (i) would, individually or in the aggregate, (A) prevent or materially
delay the consummation of the Offer or the Acquisition, or (B) otherwise prevent
or materially delay performance by Seller of any of its material obligations
under this Agreement, or (ii) has or would reasonably be expected to,
individually or in the aggregate, result in the imposition of any material
liability upon Seller or the imposition of any material restriction on the
operation of the business of Seller. 

4.10     Absence of
Undisclosed Liabilities. Since March 1, 2015, except for those
liabilities that are fully reflected or reserved against on the Seller Financial
Statements and for liabilities incurred in the ordinary course of business
consistent with past practice, Seller has not incurred any obligation or
liability (contingent or otherwise) that, either alone or when combined with all
similar liabilities, either has had, or would reasonably be expected to have,
individually or in the aggregate, a Seller Material Adverse Effect. 

4.11     Permits; Compliance
with Applicable Laws and Reporting Requirements. Seller hold all
permits, licenses, variances, authorizations, exemptions, orders, registrations
and approvals of all Governmental Authorities which are required for the
operation of their respective businesses (the “Seller Permits”), each of
the Seller Permits is in full force and effect, and Seller is in material
compliance with the terms of the Seller Permits. Seller is not and at all times
since March 1, 2015, has not been, in violation of any applicable Laws which
would result in the imposition of any material liability upon Seller or the
imposition of any material restriction on the operation of the business of
Seller. 

4.12     Taxes and Tax
Returns. 

     (a) Seller has (a) timely filed (or
has caused to be timely filed on its behalf) (after taking into account any
extension of time within which to file) all material Tax Returns required to be
filed by it; and (b) timely paid (or has caused to be timely paid on its behalf)
all material Taxes required to have been paid by it, except for Taxes that are
being contested in good faith by appropriate proceedings and for which adequate
reserves have been established in accordance with GAAP. To the knowledge of
Seller, an adequate reserve (excluding any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) for all
Taxes payable by Seller for all taxable periods and portions thereof in
accordance with GAAP, whether or not shown as being due on any Tax Returns. No
deficiencies for any material amount of Taxes have been proposed, asserted or
assessed against Seller as of the date hereof, and no requests for waivers of
the time to assess any such material Taxes are pending or have been granted.

     (b) No examination or audit of any
material Tax Return of Seller or any administrative or judicial proceeding in
respect of any material amount of Tax is currently in progress or, to Seller’s
knowledge, threatened. 

     (c) Seller (i) is not nor has ever
been a member of a group of corporations with which it has filed (or been
required to file) consolidated, affiliated, combined or unitary Tax Returns,
other than a group the common parent of which was Seller, or (ii) is a party to
or bound by any Tax indemnity, Tax sharing or Tax allocation agreement. 

     (d) Seller has timely withheld and
paid all material Taxes required to have been withheld and paid in connection
with any amounts paid or owing to any Seller Personnel, creditor, depositor, or
other third party, and has complied in all material respects with any applicable
information reporting, filing or similar requirements with respect to any such
payments. 

     (e) Seller has not participated
in any “listed transaction” within the meaning of Treasury Regulations Section
1.6011 -4(b)(2) or Section 301.6111 -2(b)(2).

     (f) During the five-year period
ending on the date hereof, Seller was not a “distributing corporation” or a
“controlled corporation” in a transaction intended to be governed by Section 355
of the Code. 

4.13     Employee Benefit
Programs. The parties acknowledge that certain payments have been
made or are to be made by Seller into Seller’s Simplified Employee Pension Plan
– IRA (“SEP”), on behalf of certain officers of Seller none of which
funds are matched by Seller. Seller hereby represents and warrants that all such
amounts payable into SEP (i) are being paid or granted as compensation for past
services performed, future services to be performed, or future services to be
refrained from performing, (and matters incidental thereto) and (ii) are not
matched by Seller. 

4.14     Labor and Employment
Matters. 

     (a) Seller is in material compliance
with all federal, state, and foreign Laws respecting employment and employment
practices, terms and conditions of employment, and wages and hours, including,
but not limited to, Title VII of the Civil Rights Act of 1964, as amended, the
Equal Pay Act of 1967, as amended, the Age Discrimination in Employment Act of
1967, as amended, the Americans with Disabilities Act, as amended, and the
related rules and regulations adopted by those federal agencies responsible for
the administration of such Laws, and other than normal accruals of wages during
regular payroll cycles, there are no arrearages in the payment of wages except
for possible violations or arrearages, which, individually or in the aggregate,
are not and would not be, individually or in the aggregate, material in
magnitude. To Seller’s knowledge, as of the date hereof, (i) there are no
material audits or investigations pending or scheduled by any Governmental
Authority pertaining to the employment practices of Seller and (ii) no
complaints relating to employment practices of Seller have been made to any
Governmental Authority or submitted in writing to Seller. 

     (b) Seller is not a party to, or
otherwise bound by, any collective bargaining agreement, contract or other
agreement or understanding with a labor union or labor organization except
outside of the United States in the ordinary course of business. To the
knowledge of Seller, Seller is not subject to any charge, demand, petition or
representation proceeding seeking to compel, require or demand it to bargain
with any labor union or labor organization nor is there pending or threatened,
any labor strike or lockout involving Seller. 

4.15     Material
Contracts. Seller is not a party to or is bound by any contract,
arrangement, commitment or understanding (i) that is a “material contract” (as
such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act),
(ii) which limits the ability of to compete or engage in any line of business or
to solicit business in any geographic area, (iii) which provides for exclusivity
by Seller with respect to any material products or services sold or purchased by
Seller, (iv) that by its terms would prohibit or materially delay the
consummation of the Offer, the Acquisition or any of the other transactions
contemplated by this Agreement, or (v) with any customer of Seller which is
expected to relate to more than $1,000,000 in annual revenue for the fiscal year
ending December 31, 2015. Each contract, arrangement, commitment or
understanding of the type described above in this Section is referred to herein
as a “Seller Contract.” All of the Seller Contracts are valid and binding
on Seller and, to Seller’s knowledge, each other party thereto, as applicable,
and in full force and effect, subject to applicable bankruptcy, insolvency,
moratorium or other similar Laws relating to creditors’ rights and general
principles of equity. Seller has not, and to the knowledge of Seller, none of
the other parties thereto have, violated in any material respect any provision
of, or committed or failed to perform any act, and no event or condition exists,
which with or without notice, lapse of time or both would constitute a material
default under the provisions of any Seller Contract, except in each case for
those violations and defaults which, individually or in the aggregate, would not
reasonably be expected to result in a Seller Material Adverse Effect and Seller
has not received written notice of any of the foregoing. 

4.16 Properties. 

     (a) The parties acknowledge that no
Real Property is owned by Seller and the Seller leases its current office space,
of approximately 4,000 square feet, through a month to month renewable lease
through GWB Properties, LLC. Seller herby represents the office space is located
at 1437 West Newberry Road, Building B, Alma, Arkansas 72921. 

     (b) Except as would not
reasonably be expected to, individually or in the aggregate, have a Seller
Material Adverse Effect, (i) the material improvements on leased office space
have legal and valid access to public streets and such sewer, water, gas,
electric, telephone and other utilities as are necessary to allow the
business as currently operated thereon to be operated in all material respects
in the ordinary course of business, and (ii) the major structural elements of
the improvements made to the office space, including mechanical, electrical,
heating, ventilation, air conditioning or plumbing systems, telecommunications,
sanitary and storm sewage lines and systems, elevators or parking elements, are
in sufficiently good condition (except for ordinary wear and tear) to allow the
business as currently conducted to be operated in all material respects in the
ordinary course of business. 

     (c) With respect to each lease and
sublease for the properties: 

     (i) the lease or sublease is a
valid, binding and enforceable obligation of Seller, as the case may be, subject
to applicable bankruptcy, insolvency, moratorium or other similar Laws relating
to creditors’ rights and general principles of equity; 

     (ii) Seller, nor to the knowledge
of Seller, any other party, is in material breach or material violation of, or
material default under, any such lease, and no event has occurred, is pending
or, to the knowledge of Seller, is threatened, which, after the giving of notice
or the lapse of time or both, would constitute a material breach or material
violation of, or material default by Seller, or to the knowledge of Seller, any
other party under such lease or sublease; 

     (iii) Seller has not assigned,
transferred, conveyed, mortgaged, deeded in trust or encumbered any interest in
the leasehold; and 

     (iv) Seller enjoys peaceful and
undisturbed possession under such lease. 

     (v) Except for Permitted
Encumbrances (“Permitted Encumbrances”), Seller, as lessee, has the right
under a valid and subsisting lease to use, possess and control all personal
property leased by Seller as now used, possessed and controlled by Seller, as
applicable. 

4.17     Environmental
Liability. There are, and have been, no legal, administrative, arbitral
or other proceedings, claims, actions, causes of action, private environmental
investigations or remediation activities or governmental investigations pending
or, to Seller’s knowledge, threatened, of any nature seeking to impose, or that
are reasonably likely to result in the imposition, on Seller of any liability or
obligation arising under common law, under any lease or sublease, or under any
foreign, local, state or federal environmental statute, regulation, ordinance or
Law including the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, which liability or obligation has had or
would reasonably be expected to have, either individually or in the aggregate, a
Seller Material Adverse Effect. To the knowledge of Seller, there is no
reasonable basis for any such proceeding, claim, action or governmental
investigation that would impose any liability or obligation that would be
reasonably likely to have, individually or in the aggregate, a Seller Material
Adverse Effect. Seller is not, or has not been, subject to any agreement, order,
judgment, decree, letter or memorandum by or with any Governmental Authority or
third party imposing any liability or obligation with respect to the foregoing
that would reasonably be expected to have, either individually or in the
aggregate, a Seller Material Adverse Effect. 

4.18     State Takeover
Laws. The Seller directors and officers have approved this Agreement and
the Support Agreements and have taken all other requisite action such that the
provisions of any anti-takeover laws and regulations of any Governmental
Authority, and any provisions of Seller’s Certificate of Incorporation relating
to special voting requirements for certain business combinations, will not apply
to this Agreement, the Support Agreements or any of the transactions
contemplated hereby or thereby. 

4.19     Insurance.
Seller maintains insurance with financially responsible insurers in such amounts
and covering such risks as are in accordance with normal industry practice for
companies engaged in businesses similar to those of Seller. All such insurance
policies are in full force and effect, all premiums due and payable thereunder
have been paid, are not in material default thereunder, Seller has not taken any
action or failed to take any action which, with notice or the lapse of time,
would constitute such a breach or default of thereunder or permit termination or
material modification thereof. Seller has not received any written notice of
cancellation or termination with respect to any such insurance policy of Seller.

4.20     Customers.
Seller has provided to Parent a complete and accurate list of all customers of
Seller which generated revenue during Seller’s 2007 fiscal year. None of Sellers
such customers have notified Seller in writing that it has terminated or
materially and adversely modified, or intends to terminate or materially and
adversely modify, its contracts or arrangements with Seller. 

4.21 Opinion of Financial Advisor. The
Seller directors and officers have received the opinion of Seller’s Financial
Advisor, to the effect that, subject to the assumptions, qualifications and
other matters set forth therein, as of the date hereof, the Offer Price and the
Acquisition Consideration is fair for the Seller from a financial point of view,
and such opinion has not been modified or withdrawn. 

4.22     No Other
Representations or Warranties. Except for the representations and
warranties contained in this Article IV, neither Seller nor any other Person on
behalf of Seller makes any express or implied representation or warranty with
respect to Seller or with respect to any other information provided to Parent in
connection with the transactions contemplated hereby. Neither Seller nor any
other Person acting on behalf of Seller shall be held liable for any actual or
alleged damage, liability or loss resulting from the distribution to Parent, or
Parent’s use of, any such information, including any information, documents,
projections, forecasts or other material made available to Parent in certain
“data rooms” or management presentations in expectation of the transactions
contemplated by this Agreement, unless any such information is expressly
included in a representation or warranty contained in this Article IV. 

4.23     Definition of
Seller’s Knowledge. As used in this Agreement, the phrase “to the
knowledge of Seller” or any similar phrase means the actual knowledge (and not
the constructive or imputed) of the Key Employees. 

ARTICLE V – COVENANTS RELATING TO CONDUCT OF BUSINESS

5.1     Conduct of Business
Pending the Effective Time. At all times from the execution of this
Agreement until the Effective Time, or as expressly permitted elsewhere in this
Agreement, Seller shall conduct its business in the ordinary course consistent
with past practice and in compliance in all material respects with all
applicable Laws, and use commercially reasonable efforts to, preserve
substantially intact its business organizations and goodwill, keep available the
services of its officers and employees and preserve the relationships with those
Persons having business dealings with Seller. Furthermore, Seller agrees not to
take any of the following actions without the prior written consent of Parent
(which will not be unreasonably withheld): 

     (a) amend its articles of
organization, certificate of incorporation or bylaws, joint venture documents,
partnership agreements or equivalent organizational documents or, except as set
forth in this Agreement. 

     (b) (A) transfer, sell, lease,
sublease or license or otherwise dispose of any material assets or properties of
Seller or (B) mortgage or pledge any of the property or assets of Seller, or
subject any such property or assets to any other Encumbrance (except Permitted
Encumbrances), other than, in the case of both (A) and (B), in the ordinary
course of business consistent with past practice; 

     (c) except in the ordinary course
of business consistent with past practice, enter into, or amend or terminate any
Seller Contract or any lease or sublease; 

     (d) make any excess capital
expenditures without consent of Parent; 

     (e) merge, enter into a consolidation
with or otherwise acquire a material position without consent of Parent; 

     (f) write down or write up or
fail to write down or write up the value of any receivables or revalue any
assets of Seller other than in the ordinary course of business and in accordance
with GAAP; 

     (g) create, incur or assume any
indebtedness for borrowed money 

     (h) change any of its methods,
principles or practices of financial accounting currently in effect other than
as required by GAAP as concurred by its independent accountant; 

     (i) (i) modify or amend in a
manner that is adverse in a material respect to Seller, or accelerate, terminate
or cancel, any Seller Contract, (ii) enter into, amend or modify any agreement
or arrangement with Persons that are Affiliates, or (iii) enter into, extend or
renew any contract which, if executed prior to the date of this Agreement, would
have been required to be disclosed, other than, in each case, in the ordinary
course of business consistent with past practice; 

     (j) transfer or license on an
exclusive basis to any Person any rights to Seller Intellectual Property Assets
or Seller Technology; 

     (k) authorize, recommend, propose
or announce an intention to adopt a plan of complete or partial liquidation or
dissolution of Seller; 

     (l) form any Subsidiary; 

     (m) settle, pay or discharge any
litigation, investigation, or arbitration, other than the settlement, payment,
discharge or satisfaction in the ordinary course of business consistent with
past practice; 

     (n) knowingly take or fail to
take any action in breach of this Agreement for the purpose of (or which would
be reasonably expected to) materially delaying or preventing the consummation of
the transactions contemplated hereby (other than as required by Law); and 

     (o) authorize any of, or commit,
resolve, offer or agree to take any of, the foregoing actions or any other
action inconsistent with the foregoing. 

5.2     Certain Tax
Matters. During the period from the date of this Agreement to the
Effective Time: 

     (a) Seller will promptly notify
Parent of any suit, claim, action, investigation, proceeding or audit pending
against or with respect to Seller in respect of any Tax and will not settle or
compromise any such suit, claim, action, investigation, proceeding or audit or
enter into any material closing agreement that would adversely affect Parent’s
Tax liability without Parent’s prior written consent. 

     (b) Except as required by
applicable Tax Law or with Parent’s prior written consent (such consent not to
be unreasonably withheld), Seller will not (i) make or change any material Tax
election, (ii) file any material amended Tax Return, (iii) agree to any material
adjustment of any Tax attribute, (iv) change (or make a request to any taxing
authority to change) any of its methods of reporting income or deductions for
federal income Tax purposes, (v) file any claim for a material refund of Taxes,
or (vi) consent to any extension or waiver of the limitation period applicable
to any material Tax claim or assessment that would adversely affect Parent’s Tax
liability. 

     (c) Seller will retain all books,
documents and records necessary for the preparation of Tax Returns and reports
(including previously filed Tax Returns and reports). 

     ARTICLE VI – ADDITIONAL
AGREEMENTS 

6.1     Access to
Information. 

     (a) Upon reasonable prior notice
and subject to applicable Laws relating to the exchange of information, Seller
shall, afford to the officers, employees, accountants, counsel and other
Representatives of Parent, reasonable access without undue interruption, during
normal business hours during the period from the date of this Agreement until
the Effective Time, or the date, if any, on which this Agreement is
terminated pursuant to Section 8.1, to all of its properties, books, contracts,
commitments and records (other than confidential information contained in
personnel files to the extent the disclosure of such information is prohibited
by privacy Laws), and their accountants and accountants’ work papers. Seller
also shall provide Parent with such access to the appropriate individuals
(including management personnel, attorneys, accountants and other professionals)
for discussion of Seller’s Business, properties, prospects and personnel as
Parent may reasonably request. Seller shall not be required to provide access to
or to disclose information where such access or disclosure would contravene any
law, rule, regulation, order, judgment, decree, or binding agreement entered
into prior to the date of this Agreement or would reasonably be expected to
violate or result in a loss or impairment of any attorney-client or work product
privilege. The parties hereto will use commercially reasonable efforts to make
appropriate substitute disclosure arrangements under circumstances in which the
restrictions of the preceding sentence apply. 

     (b) With respect to all
information furnished by one party to the other party or its Representatives
under this Agreement, the parties shall comply with, and shall cause their
respective Representatives to comply with, all of their respective obligations
under the Confidentiality Agreement. 

6.2     Additional
Agreements. In case at any time after the Acceptance Date (including
after the Effective Time) any further action is necessary or desirable to carry
out the purposes of this Agreement, reasonable actions as such as necessary, and
may be reasonably requested by the Seller and the Parent, maybe entered into
upon consent of Seller and Parent. 

6.3     Advice of
Changes. Parent and Seller shall each promptly notify the other party of
any change or event having a Parent Material Adverse Effect or Seller Material
Adverse Effect, as the case may be, or which it believes would otherwise be
reasonably likely to cause or constitute a material breach of any of its
representations, warranties or covenants contained herein; provided,
however, that the delivery of any notice shall not limit or otherwise
affect the remedies available hereunder to the party receiving such notice. 

6.4     Publicity So
long as this Agreement is in effect, neither Parent nor Seller shall issue or
cause the publication of any press release or other public announcement with
respect to, or otherwise make any public statement concerning, the transactions
contemplated by this Agreement without the consent of the other party, which
consent shall not be unreasonably withheld or delayed, except as may be required
by applicable Law in which event such party shall endeavor, on a basis
reasonable under the circumstances, to provide a meaningful opportunity to the
other parties to review and comment upon such press release or other
announcement and shall give due consideration to all reasonable additions,
deletions or changes suggested thereto; provided, however, that
the party seeking to issue or cause the publication of any press release or
other announcement with respect to the Transaction or this Agreement shall not
be required to provide any such review or comment to the other party in
connection with any disclosure of Parent in response thereto or in connection
therewith. 

ARTICLE VII – CONDITIONS PRECEDENT 
TO THE
CONSUMMATION OF THE ACQUISITION 

7.1     Conditions.
The respective obligations of Parent and Seller to consummate the Acquisition
are subject to the satisfaction, at or before the Effective Time, of each of the
following conditions: 

     (a) Seller Directors and Officers
Approval. The Seller Directors and Officers Approval shall have been
obtained, if and to the extent required by applicable Laws. 

     (b) Other Approvals. All
regulatory approvals required to consummate the transactions contemplated
hereby, shall have been obtained and shall remain in full force and effect and
all statutory waiting periods applicable to the Acquisition shall have expired
or been terminated. 

     (c) No Injunctions or
Restraints; Illegality. No order, injunction, judgment, ruling or decree
issued by any court or agency of competent jurisdiction or any Governmental
Authority or other legal restraint or prohibition preventing the consummation of
the Acquisition shall be in effect. No statute, rule, regulation, order,
injunction or decree shall have been enacted, entered, promulgated, deemed
applicable to the Acquisition or enforced by any Governmental Authority which
prohibits, or makes illegal, consummation of the Acquisition. 

ARTICLE VIII – TERMINATION, AMENDMENT AND WAIVER 

8.1     
Termination. This Agreement may be terminated and the
Transaction may be abandoned at any time prior to the Effective Time, whether
before or after the Seller director’s and officer’s Approval: 

     (a) by mutual written consent of
Seller and Parent; 

8.2     Effect of
Termination. In the event of a termination and abandonment of this
Agreement by either Parent or Seller, this Agreement shall immediately become
void and have no effect, and none of Parent or Seller or any of the officers or
directors of Parent or Seller shall have any liability or obligation of any
nature whatsoever hereunder, or in connection with the transactions contemplated
hereby, and all other obligations of the parties specifically intended to be
performed after the termination of this Agreement shall survive any termination
of this Agreement. Notwithstanding the foregoing, neither Parent nor Seller
shall be relieved or released from any liabilities or damages (which the parties
acknowledge and agree shall not be limited to reimbursement of expenses or
out-of-pocket costs, and may include to the extent proven the benefit of the
bargain lost by such party (taking into consideration relevant matters,
including other combination opportunities and the time value of money), which
shall be deemed to be damages of such party) arising out of its willful breach
of any provision of this Agreement or any other agreement delivered in
connection herewith or any fraud; provided that the failure of Parent to
pay for the Seller Assets validly presented and not withdrawn pursuant to the
Offer promptly following the Expiration Date, shall be deemed a willful breach
by Parent of this Agreement, and Parent shall be liable to Seller for such
breach notwithstanding any termination of this Agreement. 

ARTICLE IX — MISCELLANEOUS 

9.1     Expenses.
Except as may otherwise be agreed to hereunder or in other writing by the
parties, all legal and other costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the party
incurring such costs and expenses. 

9.2     Notices. All
notices or other communications hereunder shall be in writing and shall be
deemed given if delivered personally, sent by nationally recognized overnight
courier (providing proof of delivery) or mailed by prepaid registered or
certified mail (return receipt requested) or by telecopy (providing confirmation
of transmission) or by email (providing a printed copy of transmission is
available upon request) addressed as follows: 

     (a) If to Parent, to: 

Galenfeha, Inc. 
420 Throckmorton Street, Suite 200 
Ft.
Worth, Texas 76102 
FAX: 817-887-1455 
Email:
jwketner@galenfeha.com 

     (b) If to Seller, to: 

Daylight Pumps, LLC 
P.O. Box 424 
Alma, Arkansas 72921

Phone: 479-459-8012 
Attention: Warren Robertson 

or such other address as shall be furnished in writing by any
party, and any such notice or communication shall be deemed to have been given
as of the date received by the addressee as provided above; provided that
any notice received by facsimile transmission or otherwise at the addressee’s
location on any Business Day after 5:00 p.m. (addressee’s local time) shall be
deemed to have been received at 9:00 a.m. (addressee’s local time) on the next
Business Day. 

9.3    
Interpretation. When a reference is made in this Agreement to
Sections, Exhibits, or Schedules, such reference shall be to a Section of or
Exhibit to this Agreement unless otherwise indicated. The table of contents and
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement. Whenever
the words “include”, “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation.” The words
“hereof”, “hereto”, “hereby”, “herein” or “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. The term “or” is not
exclusive. Any capitalized terms used in any Exhibit, but not otherwise defined
therein, shall have the meaning as defined in this Agreement. All references to
this Agreement shall be deemed to include references to the “plan of
Acquisition” contained herein (as such term is used in the ARGCL). A reference
to dollars, US$ and $ is to United States currency. 

9.4     Counterparts.
This Agreement may be executed in counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have
been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart. 

9.5     Entire
Agreement. This Agreement, together with the exhibits and schedules
hereto, and any documents delivered by the parties in connection herewith and
the Confidentiality Agreement constitute the entire agreement and supersede all
prior agreements and understandings, both written and oral, among the parties
hereto, or any of them, with respect to the subject matter hereof. 

9.6     Governing Law;
Jurisdiction and Venue; WAIVER OF JURY TRIAL. This Agreement shall be
governed by and construed in accordance with the laws of the State of Nevada
without regard to its rules of conflict of laws. Each of Parent and Seller
hereby irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the courts of Nevada Court of Chancery, or if no such state
court has proper jurisdiction, then the Federal court of the United States of
America located in the State of Nevada, and appellate courts therefrom,
(collectively, the “Nevada Courts”) for any litigation arising out of or
relating to this Agreement and the transactions contemplated hereby (and agrees
not to commence any litigation relating thereto except in such courts), waives
any objection to the laying of venue of any such litigation in the Nevada Courts
and agrees not to plead or claim in any Nevada Court that such litigation
brought therein has been brought in any inconvenient forum. Each of the parties
hereto agrees, (a) to the extent such party is not otherwise subject to service
of process in the State of Nevada, to appoint and maintain an agent in the State
of Nevada as such party’s agent for acceptance of legal process, and (b) that
service of process may also be made on such party by prepaid certified mail with
a proof of mailing receipt validated by United States Postal Service
constituting evidence of valid service. Service made pursuant to (a) or (b)
above shall have the same legal force and effect as if served upon such party
personally with the State of Nevada. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT. 

9.7     Severability.
In the event that any one or more provisions of this Agreement shall for any
reason be held invalid, illegal or unenforceable in any respect, by any court of
competent jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provisions of this Agreement and the parties shall use
their reasonable best efforts to substitute a valid, legal and enforceable
provision which, insofar as practicable, implements the original purposes and
intents of this Agreement. 

9.8     Assignment; Reliance
of Other Parties. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto in whole or in part (whether by operation of Law or otherwise) without
the prior written consent of the other parties and any attempt to make any such
assignment without such consent shall be null and void. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of and be
enforceable by the parties and their respective successors and assigns. Except
(i) as provided in Section 7.5 (Directors’ and Officers’ Indemnification and
Insurance) hereof and (ii) the provisions of Articles I and III concerning
payment of the aggregate Offer Price and Acquisition Consideration, which shall
inure to the benefit of the Seller but, prior to the Effective Time, may only be
enforced by Seller acting on their behalf, this Agreement (including the
documents and instruments referred to herein) is not intended to confer upon any
Person other than the parties hereto any rights or remedies under or by reason
of this Agreement. 

9.9     Specific
Performance. The parties hereto agree that irreparable damage would
occur in the event that the provisions contained in this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the parties shall be entitled to seek an injunction
or injunctions, without the posting of any bond, to prevent breaches of this
Agreement and to enforce specifically the terms and provisions thereof in the
Nevada Courts, this being in addition to any other remedy to which they are
entitled at law or in equity. Except as otherwise provided herein, any and all
remedies herein expressly conferred upon a party will be deemed cumulative and
not exclusive of any other remedy conferred hereby, or by law or equity upon
such party, and the exercise by a party of any one remedy will not preclude the
exercise of any other remedy. 

9.10     Definitions.
Except as otherwise provided herein or as otherwise clearly required by the
context, the following terms shall have the respective meanings indicated when
used in this Agreement: 

     “Acceptance
Date” shall have the meaning ascribed thereto in Section 1.1(a)
hereof. 

     “Affiliate”
shall mean, with respect to any Person, any other Person controlling, controlled
by or under common control with such Person. As used in this definition,
“control” (including, with its correlative meanings, “controlled by” and “under
common control with”) means the possession, directly or indirectly, of power to
direct or cause the direction of the management and policies of a Person whether
through the ownership of voting securities, by contract or otherwise. 

    
“Agreement” shall have the meaning ascribed thereto in
the recitals hereto. 

    
“Arrangements” shall have the meaning ascribed thereto
in Section 4.13(k) hereof. 

     “Automobiles”
shall mean three (3) non-commercial automobiles used by directors and
officers of Seller. 

     “Business
Day” shall have the meaning ascribed thereto in Rule 14d-1(c)(6)
under the Exchange Act. 

     “Certificate of
Acquisition” shall have the meaning ascribed thereto in Section
2.2 hereof. 

     “Closing”
shall have the meaning ascribed thereto in Section 2.2 hereof. 

     “Closing
Date” shall have the meaning ascribed thereto in Section 2.2
hereof. 

     “Code”
shall mean the Internal Revenue Code of 1986, as amended. 

     “Confidentiality
Agreement” shall mean that certain Confidentiality Agreement by
and between Seller and Parent dated as of March 1, 2015. 

     “ARGCL”
shall have the meaning ascribed thereto in the recitals hereto. 

     “Effective
Time” shall have the meaning ascribed thereto in Section 2.2
hereof. 

     “Encumbrances”
shall mean all transfer and voting restrictions, liens, security interests,
mortgages, pledges, hypothecations, easements, covenants, declarations,
conditions and restriction, defects in or clouds on title and other encumbrances
of every kind and nature (including options, preemptive right, rights of first
negotiation and rights of first refusal), whether arising by agreement,
operation of law or otherwise. 

     “Equipment”
shall mean SLA Machines 1-11 and all other equipment used in the production of
jewelry manufacturing and all other equipment considered as assets of Seller.

     “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Expiration
Date” shall have the meaning ascribed thereto in Section 1.1(b)
hereof. 

     “GAAP”
shall have the meaning ascribed thereto in Section 4.6. 

     “Governmental
Authority” shall mean any (i) United States, foreign, federal,
state, local or other government, (ii) governmental commission, board, body,
bureau, agency, or other judicial, regulatory or administrative authority of any
nature, including courts and other judicial bodies, (iii) any self-regulatory
body or authority, and (iv) any instrumentality or entity designed to act for or
on behalf of the foregoing. 

     “IRS”
shall mean the Internal Revenue Service. 

     “Key
Employee” shall mean each of the individual directors, officers,
or affiliates of Seller. 

     “Law” shall
mean any federal, state, local or foreign law, statute, ordinance or principle
of common law, or any rule, regulation, standard, judgment, order, writ,
injunction, decree, arbitration award, agency requirement, license or permit of
any Governmental Authority. 

    
“Acquisition” shall have the meaning ascribed thereto
in the recitals hereto. 

     “Acquisition
Consideration” shall have the meaning ascribed thereto in Section
3.6 hereof. 

     “Nevada
Courts” shall have the meaning ascribed thereto in Section 10.7
hereof. 

     “Offer”
shall have the meaning ascribed thereto in the recitals hereto. 

     “Offer
Documents” shall have the meaning ascribed thereto in Section 1.1(c)
hereof. 

     “Offer
Price” shall have the meaning ascribed thereto in the recitals
hereto. 

     “Parent”
shall have the meaning ascribed thereto in the recitals hereto. 

     “Parent Material Adverse
Effect” means, with respect to Parent, an effect, event or change
which would reasonably be expected to prevent or materially delay the
consummation of the Transaction and the other transactions contemplated by this
Agreement or prevent or materially impair or delay the ability of Parent to
perform its obligations under this Agreement. 

     “Permitted
Encumbrances” shall mean interest by the investor or landlord of
leased premises. 

     “Person” or
“Persons” shall mean any individual, corporation,
partnership, joint venture, association, trust, unincorporated organization or
other legal entity, or any Governmental Authority or political subdivision
thereof. 

     “Real
Property” shall mean any land, land improvements such as
buildings, and machinery sited on land. 

    
“Representatives” shall mean the directors, officers, employees,
Affiliates, agents, investment bankers, financial advisors, attorneys,
accountants, brokers, finders, consultants or representatives of Seller, Parent,
as the case may be. 

     “SEC”
shall have the meaning ascribed thereto in Section 1.1(c) hereof. 

    
“Repayment” shall have the meaning ascribed thereto in
the recitals hereto. 

     “Seller”
shall have the meaning ascribed thereto in the recitals hereto. 

     “Seller
Assets” or individually stated as “Seller
Assets”, shall have the meaning ascribed thereto in the recitals
hereto and further described in Section 4.3 hereof. 

     “Seller
Contracts” shall have the meaning ascribed thereto in Section
4.15 hereof. 

     “Seller Financial
Statements” shall have the meaning ascribed thereto in Section 4.6
hereof. 

     “Seller Material Adverse
Effect” shall mean, with respect to Seller, a change, event,
development, circumstance, condition or effect (an “Effect”) that,
individually or when taken together with all other Effects that exist at the
date of determination, has a material adverse effect on the business,
operations, assets, liabilities, results of operations, or financial condition
of Seller, other than (a) any Effect resulting from (i) general changes in the
economy or financial markets of the United States or any other region outside of
the United States, (ii) changes in general legal, regulatory, political,
economic or business conditions (including the commencement, contribution or
escalation of a war or material armed hostilities, acts of terrorism, or the
occurrence of natural disasters) that generally affect the rapid prototyping
industry, (iii) changes in GAAP, (iv) the announcement of this Agreement or
pendency of the Offer or the Acquisition, (v) the identity of Parent or any of
its Affiliates as the acquirer of Seller, and (vi) compliance with the terms of,
or the taking of any action required by, this Agreement or consented to by
Parent; provided that any change of a type described in clauses (i) or
(ii) shall be taken into account in determining whether there was a Seller
Material Adverse Effect if such change affects Seller in a materially
disproportionate manner to other businesses participating in the rapid
prototyping industry; or (b) any failure to meet internal or published
projections, forecasts or revenue or earning predictions for any period;
provided that the underlying causes of such decline, change or failure
shall be considered in determining whether there was a Seller Material Adverse
Effect. 

     “Seller
Permits” shall have the meaning ascribed thereto in Section 4.11
hereof. 

     “Seller
Personnel” shall mean any current or former director, officer,
employee, independent contractor or consultant of Seller. 

     “Seller’s
Business” shall have the meaning ascribed thereto in Section 6.1
hereof. 

     “Seller’s Financial
Advisor” shall have the meaning ascribed thereto in Section 4.21
hereof. 

     “SEP”
shall have the meaning ascribed thereto in Section 4.13 hereof. 

     “Small Business
Incubator” shall mean a facility that offers adaptable space and
support services at a discounted rate. 

     “Subsidiary”
shall mean, when used with reference to a party, any corporation or other
organization, whether incorporated or unincorporated, of which such party is a
general partner (excluding partnerships the general partnership interests of
which held by such party of such party do not have a majority of the voting
interests in such partnership) or serves in a similar capacity, or, with respect
to such corporation or other organization, at least a majority of the securities
or other interests having by their terms ordinary voting power to elect a
majority of the board of directors or others performing similar functions is
directly or indirectly owned or controlled by such party. 

     “Support
Agreements” shall have the meaning ascribed thereto in the
recitals hereto. 

     “Tax” shall
mean any and all taxes, customs, duties, tariffs, imposts, charges,
deficiencies, assessments, levies or other like governmental charges, including,
without limitation, income, gross receipts, excise, real or personal property,
ad valorem, value added, estimated, alternative minimum, stamp, sales,
withholding, social security, occupation, use, service, service use, license,
net worth, payroll, franchise, transfer and recording taxes and charges, imposed
by the IRS or any other taxing authority (whether domestic or foreign including,
without limitation, any state, county, local or foreign government or any
subdivision or taxing agency thereof (including a United States possession)),
whether computed on a separate, consolidated, unitary, combined or any other
basis; and such term shall include any interest, fines, penalties or additional
amounts attributable to, or imposed upon, or with respect to, any such amounts.

     “Tax Return”
shall mean any report, return, document, declaration, election or other
information or filing required to be supplied to any taxing authority or
jurisdiction (foreign or domestic) with respect to Taxes, including, without
limitation, information returns and any documents with respect to or
accompanying payments of estimated Taxes or requests for the extension of time
in which to file any such report, return, document, declaration or other
information. 

    
“Transaction” shall have the meaning ascribed thereto
in the recitals hereto. 

IN WITNESS WHEREOF, Parent and Seller have caused this
Agreement to be executed as a sealed instrument by their duly authorized
officers as of the day and year first above written. 

	GALENFEHA, INC. 
	 	  
	 	  
	By:  	
    /s/ James Ketner 
	 	James Ketner 
	 	President/CEO 

	DAYLIGHT PUMPS, LLC 
	 	  
	 	  
	By:  	
    /s/ Warren Robertson 
	 	Warren Robertson 
	 	Majority PartnerExhibit 10.38

EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement") is made effective as of November 10, 2014 (the “Effective Date”  between DESTINATION XL GROUP, INC., a Delaware corporation with an office at 555 Turnpike Street, Canton, Massachusetts, 02021 (the "Company" which term includes any affiliates and subsidiaries), and Brian S. Reaves (the “Executive”) having an address at 875 Saints Drive, Marietta, Georgia 3000. 

WITNESSETH:

WHEREAS, the Company desires that Executive work for the Company and Executive desires to be employed by the Company.

WHEREAS, Executive and the Company desire to set forth in writing the terms and conditions of the Executive's employment with the Company from the date hereof.

NOW, THEREFORE, in consideration of the promises and the mutual promises, representations and covenants herein contained, the parties hereto agree as follows:

1. EMPLOYMENT

The Company hereby employs Executive and Executive hereby accepts such employment, subject to the terms and conditions herein set forth.  Executive held the title Senior Vice President Store Sales and Operations as of May 24, 2010 and was promoted to Senior Vice President and Chief Sales Officer as of the Effective Date. 

2. TERM

The term of employment under this Agreement (the “Term of Employment”) shall begin on the Effective Date and shall continue until terminated by either party as hereinafter set forth.

3. COMPENSATION

(a) During the Term of Employment, as compensation for the employment services to be rendered by Executive hereunder, the Company agrees to pay to Executive, and Executive agrees to accept, payable in equal bi-weekly installments in accordance with Company practice, an annual base salary of Three Hundred  Thousand Dollars and 00/100 Cents ($300,000.00) (the “Base Salary”) as of the Effective Date.  The Base Salary shall be reviewed at least annually to ascertain whether, in the judgment of the Company, such Base Salary should be adjusted.  If so, the adjusted Base Salary shall be adjusted for all purposes of this Agreement.

(b) In addition to the Base Salary, during the Term of Employment, Executive is eligible to participate in the Company’s Annual Incentive Plan. Such incentive shall be determined and payable in accordance with the Company's incentive program in effect at the time, subject to change from year to year in the Company’s sole discretion. Executive will participate in the Company’s incentive program and Executive’s target bonus under such plan (if all individual and Company performance conditions are met) shall be 40% of Executive’s actual annual base earnings (which shall be the total Base Salary as may be paid during the fiscal year (“Base Earnings”)). The actual award under the incentive program, if any, may be more or less than the target and will be based on Executive’s performance and the performance of the Company and payment will be made in accordance with and subject to the terms and conditions of the incentive program then in effect.

(c) In addition, during the Term of Employment, Executive is eligible to participate in the Company’s Long Term Incentive Plan (“LTIP”). Such incentive shall be determined and distributable in accordance with and subject to the terms and conditions as described in the LTIP documents in effect at the time of the award, subject to change from year to year in the Compensation Committee’s sole discretion. Executive will participate in the Company’s LTIP at a target incentive rate of 70%, of Executive’s combined actual annual Base Earnings, for the incentive period, based upon the Company’s targeted performance as defined in the LTIP documents in effect at the time of the award.

 

 

 

 

 

4. EXPENSES

The Company shall pay or reimburse Executive, in accordance with the Company's policies and procedures and upon presentment of suitable vouchers, for all reasonable business and travel expenses, which may be incurred or paid by Executive during the Term of Employment in connection with his employment hereunder.  Executive shall comply with such restrictions and shall keep such records as the Company may reasonably deem necessary to meet the requirements of the Internal Revenue Code of 1986, as amended from time to time, and regulations promulgated thereunder.

5. OTHER BENEFITS

(a) During the Term of Employment, Executive shall be entitled to such vacations and to participate in and receive any other benefits customarily provided by the Company to its management (including any profit sharing, pension, 401(k), short and long-term disability insurance, medical and dental insurance and group life insurance plans in accordance with and subject to the terms of such plans, including, without limitation, any eligibility requirements contained therein), all as determined from time to time by the Compensation Committee of the Board of Directors in its discretion.

(b) The Company will, during the Term of Employment, provide Executive with an automobile allowance in the total amount of Eight Thousand Four Hundred Dollars and 00/100 ($8,400.00) annually, in equal bi-weekly payments in accordance with the Company’s normal payroll practices. Executive shall pay and be responsible for all insurance, repairs and maintenance costs associated with operating the automobile.  Executive is responsible for his gasoline, unless the gasoline expense is reimbursable under the Company's policies and procedures.

(b) Executive will be eligible to participate in the Company’s annual performance appraisal process.  

6. DUTIES

(a) Executive shall perform such duties and functions consistent with the position of Senior Vice President and Chief Sales Officer and/or as the Company shall from time to time determine and Executive shall comply in the performance of his duties with the policies of, and be subject to the direction of the Company.

(b) During the Term of Employment, Executive shall devote substantially all of his time and attention, vacation time and absences for sickness excepted, to the business of the Company, as necessary to fulfill his duties.  Executive shall perform the duties assigned to him with fidelity and to the best of his ability.  Notwithstanding anything herein to the contrary, and subject to the foregoing, Executive shall not be prevented from accepting positions in outside organizations so long as such activities do not interfere with Executive's performance of his duties hereunder and do not violate paragraph 10 hereof.

(c) The principal location at which the Executive shall perform his duties hereunder shall be at the Company's offices in Canton, Massachusetts or at such other location as may be temporarily designated from time to time by the Company.  Notwithstanding the foregoing, Executive shall perform such services at such other locations as may be required for the proper performance of his duties hereunder, and Executive recognizes that such duties may involve travel.

7. TERMINATION OF EMPLOYMENT; EFFECT OF TERMINATION

(a) The Term of Employment may be terminated by the Company at any time:

(i) upon the determination by the Company that Executive's performance of his duties has not been fully satisfactory for any reason which would not constitute justifiable cause (as hereinafter defined) or for other business reasons necessitating termination which do not constitute justifiable cause, in either case upon thirty (30) days' prior written notice to Executive; or

(ii) upon the determination of the Company that there is justifiable cause (as hereinafter defined) for such termination.

(b) The Term of Employment shall terminate upon:

(i) the death of Executive; 

(ii) the date on which the Company elects to terminate the Term of Employment  by reason of the "disability" of Executive (as hereinafter defined in subsection (c) herein) pursuant to subsection (g) hereof; or

(iii) Executive’s resignation of employment.

(c) For the purposes of this Agreement, the term "disability" shall mean Executive is physically or mentally incapacitated so as to render Executive incapable of performing the essentials of Executive's job, even with reasonable accommodation, as reasonably determined by the Company, which determination shall be final and binding. 

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(d) For the purposes hereof, the term "justifiable cause" shall mean: any failure or refusal to perform any of the duties pursuant to this Agreement or any breach of this Agreement by the Executive; Executive’s breach of any material written policies, rules or regulations which have been adopted by the Company; Executive’s repeated failure to perform his duties in a satisfactory manner; Executive's performance of any act or his failure to act, as to which if Executive were prosecuted and convicted, a crime or offense involving money or property of the Company or its subsidiaries or affiliates, or a crime or offense constituting a felony in the jurisdiction involved, would have occurred; any unauthorized disclosure by Executive to any person, firm or corporation of any confidential information or trade secret of the Company or any of its subsidiaries or affiliates; any attempt by Executive to secure any personal profit in connection with the business of the Company or any of its subsidiaries and affiliates; or the engaging by Executive in any business other than the business of the Company and its subsidiaries and affiliates which interferes with the performance of his duties hereunder.  Upon termination of Executive's employment for justifiable cause, Executive shall not be entitled to any amounts or benefits hereunder other than such portion of Executive's Base Salary and reimbursement of expenses pursuant to paragraph 5 hereof as have been accrued through the date of his termination of employment.

(e) If the Company terminates this Agreement without "justifiable cause" as provided in subsection 7(a)(i), the Company shall pay Executive his then current base salary for five months after the effectiveness of such termination, payable in equal payments in accordance with the Company’s customary payroll practices commencing with the first payroll period that begins at least 30 days after the termination of the Executive’s Term of Employment conditioned upon the Executive having provided the Company with an executed general release in the form attached hereto as Exhibit A (the “General Release”) and the time for Executive’s revocation of the General Release having expired.  Such payments shall be made in accordance with the Company’s customary payroll practices until paid in full.     Any payment pursuant to this paragraph 7(e) is contingent upon Executive’s execution of the General Release within 21 days after termination of the Term of Employment (and the Executive’s not revoking that General Release) and will be in lieu of payments to which Executive might have been entitled under any other severance plan of the Company.

(f) If Executive shall die during the term of his employment hereunder, this Agreement shall terminate immediately.  In such event, the estate of Executive shall thereupon be entitled to receive such portion of Executive's base annual salary and reimbursement of expenses pursuant to paragraph 4 as have been accrued through the date of his death.

(g) Upon Executive's "disability", the Company shall have the right to terminate Executive's employment.  Any termination pursuant to this subsection (g) shall be effective on the earlier of (i) the date 30 days after which Executive shall have received written notice of the Company's election to terminate or (ii) the date he begins to receive long-term disability insurance benefits under the policy provided by the Company pursuant to paragraph 5 hereof.

(h) Upon the resignation of Executive in any capacity, that resignation will be deemed to be a resignation from all offices and positions that Executive holds with respect to the Company and any of its subsidiaries and affiliates. In the event of Executive’s resignation, he shall be entitled only to receive such portion of his annual Base Salary and reimbursement of expenses pursuant to paragraph 4 as have been accrued through the date of his resignation.

(i) Change of Control.  In the event the Term of Employment is terminated by the Company without justifiable cause (as defined herein) or Executive resigns with Good Reason (as defined herein) within one (1) year following a Change of Control of the Company has occurred, then, in such event, the Company shall pay Executive an amount equal to twelve (12) months of Base Salary in effect at the time of the termination.  For the purposes of the foregoing, Change of Control shall have the meaning set forth in the Company’s 2006 Incentive Compensation Plan (without regard to any subsequent amendments thereto). For purposes of the foregoing, “Good Reason” means the occurrence of any of the following: (i) a material diminution in the Executive’s base compensation; (ii) a material diminution in the Executive’s authority, duties, or responsibilities; (iii) a material change in the geographic location at which the Employee must perform the services under this Agreement; or (iv) any other action or inaction that constitutes a material breach by the Company of this Agreement.  For purposes of this provision, Good Reason shall not be deemed to exist unless the Employee’s termination of employment for Good Reason occurs within 2 years following the initial existence of one of the conditions specified in clauses (i) through (iv) above, the Employee provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.  The Company shall pay the amount required under this paragraph 7(i) in a single payment thirty (30) days after termination of the Term of Employment, subject to and conditioned upon the Executive’s execution of the General Release required pursuant to paragraph 7(k) hereof and such release becoming irrevocable.  Any payments made pursuant to this paragraph 7(j) will be in lieu of payments to which Executive might have been entitled under paragraph 7(e) of this Agreement or under any other severance plan of the Company.  The payments under this Agreement shall be reduced if and to the extent necessary to avoid any payments or benefits to Executive being treated as “excess parachute payments” within the meaning of Internal Revenue Code Section 280G(b)(i).

(j) Clawback of Certain Compensation and Benefits

.  If, after the termination of the Term of Employment for any reason other than by the Company for “justifiable cause”:

(i) it is determined in good faith by the Company within twelve (12) months after the termination of the Term of Employment (the “Termination Date”) that the Executive’s employment could have been terminated by the Company for justifiable cause under paragraph 7(d) hereof (unless the Company knew or should have known that as of the Termination Date, the Executive’s employment could have been terminated for justifiable cause in accordance with paragraph 7(d) hereof); or 

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(ii) the Executive breaches any of the provisions of paragraph 10, then, in addition to any other remedy that may be available to the Company in law or equity and/or pursuant to any other provisions of this Agreement, the Executive’s employment shall be deemed to have been terminated for justifiable cause retroactively to the Termination Date and the Executive also shall be subject to the following provisions:

(A) the Executive shall be required to pay to the Company, immediately upon written demand by the Company, all amounts paid to Executive by the Company, whether or not pursuant to this Agreement (other than such portion of Executive’s Base Salary and reimbursement of expenses pursuant to paragraph 4 hereof as have been accrued through the date of the termination of the Term of Employment), on or after the Termination Date (including the pre-tax cost to the Company of any benefits  that are in excess of the total amount that the Company would have been required to pay to the Executive if the Executive’s employment with the Company had been terminated by the Company for justifiable cause in accordance with paragraph 7(d) above); 

(B) all vested and unvested Awards (as that term is defined in the 2006 Incentive Compensation Plan) then held by the Executive shall immediately expire; and

(C) the Executive shall be required to pay to the Company, immediately upon written demand by the Company, an amount equal to any Gains resulting from the exercise or payment of any Awards (as that term is defined in the 2006 Incentive Compensation Plan) at any time on or after, or during the one year period prior to, the Termination Date.  For these purposes, the term “Gain” shall mean (i) in the case of each stock option or stock appreciation right (“SAR”), the difference between the fair market value per share of the Company’s common stock underlying such option or SAR as of the date on which the Executive exercised the option or SAR, less the exercise price or grant price of the option or SAR; and (ii) in the case of any Award other than a stock option or SAR that is satisfied by the issuance of Common Stock of the Company, the value of such stock on the Termination Date, and (iii) in the case of any Award other than a stock option or SAR, that is satisfied in cash or any property other than Common Stock of the Company, the amount of cash and the value of the property on the payment date paid to satisfy the Award.

(k) Any payment pursuant to paragraph 7(e) or 7(j) shall be contingent upon Executive’s execution of the General Release within 21 days after termination of the Term of Employment, and the Executive’s not revoking that release.

8. COMPLIANCE WITH SECTION 409A

(a) General.  It is the intention of both the Company and the Executive that the benefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Code and the Treasury Regulations and other guidance promulgated or issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention.  If the Executive or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not so comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the timing of such benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on the Executive).  

(b) Distributions on Account of Separation from Service.  If and to the extent required to comply with Section 409A, no payment or benefit required to be paid under this Agreement on account of termination of the Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning of Section 409A.

(c) 6 Month Delay for “Specified Employees”. 

(i) If the Executive is a “specified employee”, then no payment or benefit that is payable on account of the Executive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is six months after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation) under Section 409A and such deferral is required to comply with the requirements of Section 409A.  Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule.  There shall be added to any payments that are delayed pursuant to this provision interest at the prime rate as reported in the Wall Street Journal for the date of the Executive’s separation from service.  Such interest shall be calculated from the date on which the payment otherwise would have been made until the date on which the payment is made.

(ii) For purposes of this provision, the Executive shall be considered to be a “specified employee” if, at the time of his or her separation from service, the Executive is a “key employee”, within the meaning of Section 416(i) of the Code, of the Company (or any person or entity with whom the Company would be considered a single employer under Section 414(b) or Section 414(c) of the Code) any stock in which is publicly traded on an established securities market or otherwise.

(d) No Acceleration of Payments.  Neither the Company nor the Executive, individually or in combination, may accelerate any payment or benefit that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no amount that is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section 409A.

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(e) Treatment of Each Installment as a Separate Payment. For purposes of applying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled under this Agreement shall be treated as a separate payment.  In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

(f) Taxable Reimbursements. 

(i) Any reimbursements by the Company to the Executive of any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no later than the earlier of the date on which they would be paid under the Company’s normal policies and the last day of the taxable year of the Executive following the year in which the expense was incurred.  

(ii) The amount of any Taxable Reimbursements to be provided to the Executive during any taxable year of the Executive shall not affect the expenses eligible for reimbursement to be provided in any other taxable year of the Executive.  

(iii) The right to Taxable Reimbursements shall not be subject to liquidation or exchange for another benefit.

9. REPRESENTATION AND AGREEMENTS OF EXECUTIVE

(a) Executive represents and warrants that he is free to enter into this Agreement and to perform the duties required hereunder, and that there are no employment contracts or understandings, restrictive covenants or other restrictions, whether written or oral, preventing the performance of his duties hereunder.

(b) Executive agrees to submit to a medical examination and to cooperate and supply such other information and documents as may be required by any insurance company in connection with the Company's obtaining life insurance on the life of Executive, and any other type of insurance or fringe benefit as the Company shall determine from time to time to obtain.

(c) Executive represents and warrants that he has never been convicted of a felony and he has not been convicted or incarcerated for a misdemeanor within the past five years, other than a first conviction for drunkenness, simple assault, speeding, minor traffic violations, affray, or disturbance of the peace.

(d) Executive represents and warrants that he has never been a party to any judicial or administrative proceeding that resulted in a judgment, decree, or final order (i) enjoining him from future violations of, or prohibiting any violations of any federal or state securities law, or (ii) finding any violations of any federal or state securities law.

(e) Executive represents and warrants that he has never been accused of any impropriety in connection with any employment;

Any breach of any of the above representations and warranties is "justifiable cause" for termination under paragraph 7(d) of this Agreement.

10. NON-COMPETITION

(a) Executive agrees that during the Term of Employment and during the one (1) year period immediately following the Termination Date (the "Non-Competitive Period"), Executive shall not, directly or indirectly, as owner, partner, joint venturer, stockholder, employee, broker, agent, principal, trustee, corporate officer, director, licensor, or in any capacity whatsoever, engage in, become financially interested in, be employed by, render any consultation or business advice with respect to, accept any competitive business on behalf of, or have any connection with any business which is competitive with products or services of the Company or any subsidiaries and affiliates, in any geographic area in which the Company or any of its subsidiaries or affiliates are then conducting or proposing to conduct business, including, without limitation, the United States of America and its possessions, Canada and Europe; provided, however, that Executive may own any securities of any corporation which is engaged in such business and is publicly owned and traded but in an amount not to exceed at any one time one percent (1%) of any class of stock or securities of such corporation.  In addition, Executive shall not, during the Non-Competitive Period, directly or indirectly, request or cause any suppliers or customers with whom the Company or any of its subsidiaries or affiliates has a business relationship to cancel or terminate any such business relationship with the Company or any of its subsidiaries or affiliates or otherwise compromise the Company’s good will or solicit, hire, interfere with or entice from the Company or any of its subsidiaries or affiliates any employee (or former employee who has been separated from service for less than 12 months) of the Company or any of its subsidiaries or affiliates.

(b) If any portion of the restrictions set forth in this paragraph 10 should, for any reason whatsoever, be declared invalid by a court of competent jurisdiction, the validity or enforceability of the remainder of such restrictions shall not thereby be adversely affected.  For the purposes of this paragraph 10, a business competitive with the products and services of the Company (or such subsidiaries and affiliates) is limited to a specialty retailer which primarily distributes, sells or markets so-called "big and tall" apparel of any kind for men or which utilizes the "big and tall" retail or wholesale marketing concept as part of its business.

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(c) Executive acknowledges that the Company conducts business throughout the world, that Executive’s duties and responsibilities on behalf of the Company are of a worldwide nature, that its sales and marketing prospects are for continued expansion throughout the world and therefore, the territorial and time limitations set forth in this paragraph 10 are reasonable and properly required for the adequate protection of the business of the Company and its subsidiaries and affiliates.  In the event any such territorial or time limitation is deemed to be unreasonable by a court of competent jurisdiction, Executive agrees to the reduction of the territorial or time limitation to the area or period which such court shall deem reasonable.

(d) The existence of any claim or cause of action (a  claim or cause of action is defined as a claim or cause of action which results from a breach of the terms and provisions of this Agreement by the Company, regardless of whether the breach is material) by Executive against the Company or any subsidiary or affiliate shall not constitute a defense to the enforcement by the Company or any subsidiary or affiliate of the foregoing restrictive covenants, but such claim or cause of action shall be litigated separately.

11. INVENTIONS AND DISCOVERIES

(a) Upon execution of this Agreement and thereafter, Executive shall promptly and fully disclose to the Company, and with all necessary detail for a complete understanding of the same, all existing and future developments, know-how, discoveries, inventions, improvements, concepts, ideas, writings, formulae, processes and methods (whether copyrightable, patentable or otherwise) made, received, conceived, acquired or written during working hours, or otherwise, by Executive (whether or not at the request or upon the suggestion of the Company) during the period of his employment with, or rendering of advisory or consulting services to, the Company or any of its subsidiaries and affiliates, solely or jointly with others, in or relating to any activities of the Company or its subsidiaries and affiliates known to him as a consequence of his employment or the rendering of advisory and consulting services hereunder (collectively the "Subject Matter").

 (b) Executive hereby assigns and transfers, and agrees to assign and transfer, to the Company, all his rights, title and interest in and to the Subject Matter, and Executive further agrees to deliver to the Company any and all drawings, notes, specifications and data relating to the Subject Matter, and to execute, acknowledge and deliver all such further papers, including applications for copyrights or patents, as may be necessary to obtain copyrights and patents for any thereof in any and all countries and to vest title thereto to the Company.  Executive shall assist the Company in obtaining such copyrights or patents during the term of this Agreement, and at any time thereafter on reasonable notice and at mutually convenient times, and Executive agrees to testify in any prosecution or litigation involving any of the Subject Matter; provided, however, after the Term of Employment that Executive shall be compensated in a timely manner at the rate of $250 per day (or portion thereof), plus out-of-pocket expenses incurred in rendering such assistance or giving or preparing to give such testimony if it is required after the termination of this Agreement.

12. NON-DISCLOSURE OF CONFIDENTIAL INFORMATION

(a) Executive acknowledges that the Company possesses certain confidential and propriety information that has been or may be revealed to him or learned by Executive during the course of Executive’s employment with the Company and that it would be unfair to use that information or knowledge to compete with or to otherwise disadvantage the Company. Executive shall not, during the Term of Employment or at any time following the Term of Employment, directly or indirectly, disclose or permit to be known (other than as is required in the regular course of his duties (including without limitation disclosures to the Company's advisors and consultants), as required by law (in which case Executive shall give the Company prior written notice of such required disclosure) or with the prior written consent of the Board of Directors, to any person, firm, corporation, or other entity, any confidential information acquired by him during the course of, or as an incident to, his employment or the rendering of his advisory or consulting services hereunder, relating to the Company or any of its subsidiaries or affiliates, the directors of the Company or its subsidiaries or affiliates, any supplier or customer of the Company or any of their subsidiaries or affiliates, or any corporation, partnership or other entity owned or controlled, directly or indirectly, by any of the foregoing, or in which any of the foregoing has a beneficial interest, including, but not limited to, the business affairs of each of the foregoing.  Such confidential information shall include, but shall not be limited to, proprietary technology, trade secrets, patented processes, research and development data, know-how, market studies and forecasts, financial data, competitive analyses, pricing policies, employee lists, personnel policies, the substance of agreements with customers, suppliers and others, marketing or dealership arrangements, servicing and training programs and arrangements, supplier lists, customer lists and any other documents embodying such confidential information.  This confidentiality obligation shall not apply to any confidential information, which is or becomes publicly available other than pursuant to a breach of this paragraph 12(a) by Executive.

(b) All information and documents relating to the Company and its subsidiaries or affiliates as herein above described (or other business affairs) shall be the exclusive property of the Company, and Executive shall use commercially reasonable best efforts to prevent any publication or disclosure thereof.  Upon termination of Executive's employment with the Company, all documents, records, reports, writings and other similar documents containing confidential information, including copies thereof then in Executive's possession or control shall be returned and left with the Company.

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13. SPECIFIC PERFORMANCE

Executive agrees that if he breaches, or threatens to commit a breach of, any enforceable provision of paragraphs 10, 11 or 12 (the "Restrictive Covenants"), the Company shall have, in addition to, and not in lieu of, any other rights and remedies available to the Company under law and in equity, the right to have the Restrictive Covenants specifically enforced by a court of competent jurisdiction, it being agreed that any such breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company.  Notwithstanding the foregoing, nothing herein shall constitute a waiver by Executive of his right to contest whether such a breach or threatened breach of any Restrictive Covenant has occurred. In the event of litigation between the parties to this Agreement regarding their respective rights and obligations under paragraphs 10, 11, or 12 hereof, the prevailing party shall be entitled to recover from the other all attorneys’ fees and expenses reasonably incurred in obtaining a ruling in the prevailing party’s favor.    Any such damages, attorneys’ fees and costs shall be in addition to and not in lieu of any injunctive relief that may be available to the Company.

14. AMENDMENT OR ALTERATION

No amendment or alteration of the terms of this Agreement shall be valid unless made in writing and signed by both of the parties hereto.

15. GOVERNING LAW

This Agreement shall be governed by, and construed and enforced in accordance with the substantive laws of the Commonwealth of Massachusetts, without regard to its principles of conflicts of laws.

16. SEVERABILITY

The holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect any other provision of this Agreement, which shall remain in full force and effect.

17. NOTICES

Any notices required or permitted to be given hereunder shall be sufficient if in writing, and if delivered by hand or courier, or sent by certified mail, return receipt requested, to the addresses set forth above or such other address as either party may from time to time designate in writing to the other, and shall be deemed given as of the date of the delivery or of the placement of the notice in the mail.

18. WAIVER OR BREACH

It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate, or be construed as a waiver of any subsequent breach by that same party.

19. ENTIRE AGREEMENT AND BINDING EFFECT

This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, heirs, distributors, successors and assigns and supersedes any and all prior agreements between the parties whether oral or written.  This Agreement may not be modified except upon further written agreement executed by both parties. Executive agrees that the Company may in its sole discretion, during the term of Executive’s employment with the Company and thereafter, provide copies of this Agreement (or excerpts of the Agreement) to others, including businesses or entities that may employ, do business with, or consider employing Executive in the future.  Executive further agrees that any subsequent change or changes in his duties, compensation or areas of responsibility shall in no way affect the validity of this Agreement or otherwise render inapplicable any of the provisions of paragraphs 10 through 13 of this Agreement, which shall remain in full force and effect except as may be modified by a subsequent written agreement. 

20. SURVIVAL

Except as otherwise expressly provided herein, the termination of Executive's employment hereunder or the expiration of this Agreement shall not affect the enforceability of paragraphs 7 through 26 hereof, which shall survive the termination or expiration.

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21. RESOLUTION OF DISPUTES

Any and all disputes arising under or in connection with this Agreement shall be resolved in accordance with this paragraph 21 and paragraph 15.

The parties shall attempt to resolve any dispute, controversy or difference that may arise between them through good faith negotiations.  In the event the parties fail to reach resolution of any such dispute within thirty (30) days after entering into negotiations, either party may proceed to institute action in any state or federal court located within the Commonwealth of Massachusetts, which courts shall have exclusive jurisdiction, and each party consents to the personal jurisdiction of any such state or federal court.  Both parties waive their right to a trial by jury.

22. NON-DISPARAGEMENT

Executive agrees not to make disparaging, critical or otherwise detrimental comments to any person or entity concerning the Company, its officers, directors, trustees, and employees or the services or programs provided or to be provided by the Company and the Company agrees not to make any disparaging, critical or otherwise detrimental comments to any person or entity concerning Executive.

23. FURTHER ASSURANCES

The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

24. SUBSIDIARIES AND AFFILIATES

For purposes of this Agreement:

(a) “affiliate” means any entity that controls, is controlled by, or is under common control with, the Company, and “control” means the power to exercise a controlling influence over the management or policies of an entity, unless such power is solely the result of an official position with such entity; and 

(b) “subsidiary” means any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities or interests of such corporation or other entity entitled to vote generally in the election of directors (or similar governing body of a non-corporate entity) or in which the Company has the right to receive 50% or more of the distribution of profits or 50% or more of the assets on liquidation or dissolution.

25. HEADINGS

The paragraph headings appearing in this Agreement are for the purposes of easy reference and shall not be considered a part of this Agreement or in any way modify, amend or affect its provisions.

26. COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement, under seal, as of the date and year first above written.

DESTINATION XL GROUP, INC.

 

	
By:
	
/s/ David A. Levin
	
 
	
Date: 12/5/14

	
 
	
Name: David A. Levin
	
 
	
 

	
 
	
Its: President, Chief Executive Officer

 
	
 
	
 

	
By:
	
/s/ Peter H. Stratton, Jr.
	
 
	
Date: 12/5/14

	
 
	
Name: Peter H. Stratton, Jr.
	
 
	
 

	
 
	
Its: Senior VP, CFO and Treasurer

 
	
 
	
 

	
 
	
/s/ Brian S. Reaves
	
 
	
Date: 12/8//14

	
 
	
Name: Brian S. Reaves
	
 
	
 

	
 
	
 
	
 
	
 

 

 

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EXHIBIT A

FORM OF RELEASE

GENERAL RELEASE OF CLAIMS

1. Brian S. Reaves (“Executive”), for himself and his family, heirs, executors, administrators, legal representatives and their respective successors and assigns, in exchange for good and valuable consideration to be paid after the date of his termination as set forth in the Employment Agreement to which this release is attached as Exhibit A (the “Employment Agreement”), does hereby release and forever discharge Destination XL Group, Inc. (the “Company”), its subsidiaries, affiliated companies, successors and assigns, and their respective current or former directors, officers, employees, shareholders or agents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions, causes of action, suits, controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknown including, but not limited to, all claims under any applicable laws arising under or in connection with Executive’s employment or termination thereof, whether for tort, breach of express or implied employment contract, wrongful discharge, intentional infliction of emotional distress, or defamation or injuries incurred on the job or incurred as a result of loss of employment.  Executive acknowledges that the Company encouraged him to consult with an attorney of his choosing, and through this General Release of Claims encourages him to consult with his attorney with respect to possible claims under the Age Discrimination in Employment Act (“ADEA”) and that he understands that the ADEA is a Federal statute that, among other things, prohibits discrimination on the basis of age in employment and employee benefits and benefit plans.  Without limiting the generality of the release provided above, Executive expressly waives any and all claims under ADEA that he may have as of the date hereof.  Executive further understands that by signing this General Release of Claims he is in fact waiving, releasing and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed on or prior to the date hereof.  Notwithstanding anything in this paragraph 1 to the contrary, this General Release of Claims shall not apply to (i) any rights to receive any payments pursuant to paragraph 7 of the Employment Agreement, or any accrued but unpaid benefits under any employee benefit plan maintained by the Company (ii) any rights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii) any indemnification rights Executive may have as a former officer or director of the Company or its subsidiaries or affiliated companies, (iv) any claims for benefits under any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the terms of such policy,  (v) any rights as a holder of equity securities of the Company, and (vi) any rights or claims that, by law, may not be waived, including claims for unemployment compensation and workers' compensation.  Nothing contained in this Agreement prevents you from filing a charge, cooperating with or participating in any investigation or proceeding before any federal or state Fair Employment Practices Agency, including, without limitation, the Equal Employment Opportunity Commission, except that you acknowledge that you will not be able to recover any monetary benefits in connection with any such claim, charge or proceeding.

2. Executive represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arising out of his employment, or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agrees that he will never individually or with any person file, or commence the filing of, any charges, lawsuits, complaints or proceedings with any governmental agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1 hereof (a “Proceeding”); provided, however, Executive shall not have relinquished his right to commence a Proceeding to challenge whether Executive knowingly and voluntarily waived his rights under ADEA.

3. Executive hereby acknowledges that the Company has informed him that he has up to twenty-one (21) days to sign this General Release of Claims and he may knowingly and voluntarily waive that twenty-one (21) day period by signing this General Release of Claims earlier.  Executive also understands that he shall have seven (7) days following the date on which he signs this General Release of Claims within which to revoke it by providing a written notice of his revocation to the Company.

4. Executive acknowledges that this General Release of Claims will be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Massachusetts applicable to contracts made and to be performed entirely within such State.

5. Executive acknowledges that he has read this General Release of Claims, that he has been advised that he should consult with an attorney before he executes this general release of claims, and that he understands all of its terms and executes it voluntarily and with full knowledge of its significance and the consequences thereof. 

6. This General Release of Claims shall take effect on the eighth day following Executive’s execution of this General Release of Claims unless Executive’s written revocation is delivered to the Company within seven (7) days after such execution.

 

	
	
 

	
Brian S. Reaves

 

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