Document:

EXPORTER SERVICES AGREEMENT

	     This Exporter Services Agreement (this "Agreement") is effective as of the date of the last signature hereto (the "Effective Date") and is by and between AmericaTowne, Inc., a Delaware corporation doing business at 353 E. Six Forks Road, Suite 270 in Raleigh, North Carolina 27609 ("AmericaTowne"), and World Empowerment Import and Export, LLC a North Carolina LLC doing business at 405 Glenview Lane Durham, NC 27703 USA ("Exporter").  AmericaTowne and Exporter are collectively referred to as the "Parties" or each individually as a "Party".

	     WHEREAS, AmericaTowne is a publicly-reporting company with the United States Securities and Exchange Commission (the "SEC"). Through those agreements disclosed in AmericaTowne's filings, it represents herein that it has the exclusive right, title and interest in certain intellectual property rights and other assets used in the introduction, maintenance and facilitation of the exportation of consumer goods into, amongst other countries, China, through the use of an international import trade platform ("AmericaTowne's Exporting Business").

	     WHEREAS, AmericaTowne's Exporting Business consists or will consist of exhibition, showroom and display facilities, support office(s) and staff located in the United States and China, and the platform consists or will consist of a buyer's network, and online websites either directly owned by AmericaTowne or in a partnership with third-parties in order to support the exhibition center, showroom and network to market imported goods and services to consumers in China (collectively referred to as the "AmericaTowne Platform").

	     WHEREAS, the AmericaTowne Platform is designed to save Exporter time, money, and other resources in testing the market to determine if a demand exists for their product or service in China. AmericaTowne will use its buyer's network, and staff in China and elsewhere to make its commercially reasonable best efforts to promote, distribute and market throughout the Exporter's goods and services and identify potential buyers and other business relationships for the Exporter's goods or services.

	     WHEREAS, AmericaTowne's Exporting Business compliments, in certain circumstances, specific businesses under separate agreement with AmericaTowne through Management Services and Lease Agreements ("Management Agreement").  The Parties agree that unless otherwise agreed, the Exporter is not subject to the rights, duties or obligations under the Management Agreement; rather, the rights, duties and obligations set forth herein are distinct from those under the Management Agreement.  The Parties agree that to the extent they are or shall become parties to a Management Agreement, this Agreement and the Management Agreement shall be merged forming a fully integrated agreement under Delaware law, and shall be read consistent with each other.

	     WHEREAS, the Parties agree that these recitals are not mere statements but statements in which they have each relied on in entering into this Agreement.

	     NOW, THEREFORE, for the consideration stated herein, the Parties agree as follows:

	     1. Term and Termination. This Agreement shall be effective on the Effective Date. This Agreement shall expire fifteen (15) years after the Effective Date, unless otherwise extended herein pursuant to Section 7, or terminated early as provided below for breach of a representation, warranty or term or condition of performance.  The Parties agree that termination of this Agreement does not terminate AmericaTowne's right to a Transaction Fee

	
Page 1

	

	under Section 6(c).

	     2. Good and Services Offered Through The AmericaTowne Platform. The goods and services covered by the AmericaTowne Platform, and the types of goods directed to wholesalers, agents, resellers or consumers, through online websites in China or physical locations, includes, but is not limited to, the following:

	          (a)	Imported food, agricultural, fishery and forestry products, personal care and daily necessities products, home decoration, accessories, and handicraft;

	          (b) 	Imported aviation industry, aircraft and helicopter and general aviation sales, training, maintenance, and parts, operations, club and financing, yachts; jewelry, and other luxury items;

	          (c)	Imported hospital equipment and supplies, and medical equipment and supplies; general machinery, computers, electronics, equipment and supplies;

	          (d)	Leisure community development, and senior care facilities, senior care products, and senior care services;

	          (e)	Imported high-end technology, other imported items and investment and financial services; and/or

	          (f)	Other goods or services deemed appropriate by AmericaTowne based on its expertise and experience in the target markets.

	     3. The AmericaTowne Platform Membership.  For the consideration set forth herein, and pursuant to the terms and conditions of this Agreement, AmericaTowne hereby grants a membership license to Exporter to test, market and sample the Exporter's goods and services in China and any other proper location. The Exporter membership solely pertains to exporting in the Air-purification machines, water purification machines, food, medical equipment and advices and healthcare industry, and other areas as AmericaTowne Inc. designates.

	     4. Sample and Test Market Program. For the consideration set forth herein, AmericaTowne shall provide Exporter with access to and participation in a sample and test market program assessing market acceptance and demand of their products or services through its "Sample and Test Market Program," which incorporates the following terms and conditions (where expanded or contracted where deemed necessary):
 

	          (a)	Exporter may send samples or examples of products or services, respectively, to the AmericaTowne Platform, and if deemed strategically beneficial by AmericaTowne, Exporter may send specific videos, brochures and other promotional material to explain, show, and demonstrate the products or services features to the Chinese consumer and or wholesale customers;

	          (b)	AmericaTowne agrees that Exporter, other than the consideration set forth herein, shall not be charged any extra amounts for participation in the Sample and Test Market Program;

	
Page 2

	

	          (c)	Exporter agrees to be responsible for those costs associated with packaging, shipping and other reasonable and commercially acceptable costs to send the samples to the AmericaTowne Trading Platform, including where applicable, Value Added Tax (VAT) or custom costs;

	          (d)	Upon receipt of samples, brochures, and other promotional and marketing materials, AmericaTowne will be responsible for displaying Exporter's goods and services in its online portal, and/or exhibition and showroom facilities in China, as well as marketing Exporter's products through marketing channels. AmericaTowne, in conjunction with any representative of Exporter, will exercise commercially reasonable discretion in determining how Exporter's products and services are exhibited in the AmericaTowne Trading Platform;

	          (e)	AmericaTowne will use its best efforts to match Exporter with an end buyer of its products or services. Exporter agrees that there is no assurance that a demand for its product will exist or an end buyer will be found. The Sample and Test Market Program allows Exporter an opportunity to (i) test the demand and market for its products and service by exhibiting it products or service in the AmericaTowne Platform, and (ii) receive follow-on orders for its products or services, if a demand and buyers exist, without expending normal costs for exporting; and

	          (f)	Exporter has one-year from the Effective Date to participate in the Sample and Test Market Program. Afterwards, provided no transaction has occurred in the AmericaTowne Trading Platform, Exporter agrees to pay a fee equal to 25% of the original Service fee within thirty (30) days (the "Extension Fee").  To the extent the Extension Fee is not paid, Exporter's participation and membership in the Sample and Test Program terminates.  In the event of termination, the Parties agree that the balance of this Agreement remains in full force and effect.

	     5.  Accepted Market Program. Provided that AmericaTowne concludes that the Sample and Test Market Program has resulted in market demand and target consumers for Exporter's goods and services, AmericaTowne will notify Exporter within a commercially reasonable time of its opinions, conclusions and recommendations, and in turn, provide the following services (the "Accepted Market Program"):

	          (a)	Advise Exporter in the negotiation of price, and terms and conditions of sale of Exporter's goods and/or services;

	          (b)	Assist Exporter in all phases of the exporting process, including but not limited to, labeling and preparation for exporting, customs inspection and clearance, shipping, warehousing, and payment; and

	          (c)	Propose form and substance of purchase orders to be presented to the target buyer setting forth, amongst other things, terms and conditions of sale, costs, and payment to the Exporter (or its assignee or designee) with AmericaTowne being responsible for currency exchange into United States dollars;

	          (d)	AmericaTowne will advise Exporter of the various components of the selling price including, but not limited to, normal product costs, shipping costs, other related expenses, and customs and VAT.  Exporter will make the final determination of its sale price offered

	
Page 3

	

	to the buyer;

	          (e)	AmericaTowne will advise Exporter on available incentives and accommodations as a result of AmericaTowne operating out of a Bonded Port Zone in China, such as, but not limited to, making the determination that the buyer assumes VAT and customs costs by including such costs in the price of the product or service, and reduced warehousing and logistics product costs in China;

	          (f)	From time to time state and federal agencies will have marketing and promotional programs to assist small businesses in exporting their products and services.  AmericaTowne will work with Exporter, where warranted, to take advantage of the various funding, grants and promotional opportunities available;

	          (g)	In certain cases, special certification will be required from the appropriate authorities in China, prior to export of Exporter's goods and/or services in conjunction with an end buyer's purchase order.  In such a case, AmericaTowne will assist Exporter in securing the proper certification. Exporter agrees to be responsible for all costs of such certification. Prior to any such certification action, AmericaTowne will advise Exporter, and Exporter will have the sole discretion to determine if a certification is to be obtained, and understand if such certification is obtained, Exporter (or its assignee or designee) is responsible for the costs of certification.

	     6.  Consideration. Exporter agrees to pay the following consideration for the services set forth herein:
	

	          (a)	Service Fee. Subject to Section 6(c), Exporter agrees to pay AmericaTowne a nonrefundable service fee of $30,000.00 USD on the Effective Date (the "Service Fee"), which is to be applied against the services provided by AmericaTowne in the AmericaTowne Platform, Sample and Test Market Program, and if applicable, Accepted Market Program. The Service fee is to be paid as follows: $10,000 upon signing this agreement; and monthly payments of $1,000 a month for twenty months after signing this agreement. The first monthly payment will start on 28 December 2014, and run for 19 consecutive months. At the discretion of AmericaTowne Inc. the Exporter may be required to sign a note for outstanding service fees. In addition AmericaTowne Inc. at its sole discretion may exchange other assets or items of value for payments due.

	          (b)	Transaction Fee. Exporter agrees to pay a transaction fee for each transaction between Exporter and the end buyer arranged through or facilitated by AmericaTowne in the amount of 5% (the "Transaction Fee"). The Transaction Fee shall be first deducted by AmericaTowne from the amount the end buyer owes Exporter, plus other fees, if any, agreed to by Exporter with the balance remitted to Exporter within two (2) days of receipt from the end buyer, unless commercial circumstances dictate additional time.

	          (c)	Refund of Service Fee. From time to time there may be products or services that are on the restricted import list in China.  If Exporter's product or service is on this list, AmericaTowne will advise Exporter of such restriction and Exporter will be entitled to a refund of the Service Fee minus any setoffs due under this Agreement, i.e. outstanding Transaction Fee.  This Section 6(c) shall be null and void upon termination of this Agreement, as provided for in Section 1, above.

	
Page 4

	

	     7. Extension of Term.  Provided Exporter's goods and services are in demand and Exporter is processing sales generating Transaction Fees, as set forth in Section 6, within fifteen (15) years from the Effective Date, Exporter shall have an option to (a) continue with its membership under Section 2 at no additional fee, or (b) option of developing single point of sales, distribution, networking, and logistics facilities separate and distinct from AmericaTowne for a mutually agreeable reduced rate, which shall be agreed upon in writing prior to thirty (30) days from the termination of fifteen (15) years from the Effective Date. The Exporter has the option of choosing option (b) above at its discretion.

	     8. Right to Use Promotional Material and Ownership of Samples. Exporter grants AmericaTowne exclusive rights to use the marketing and promotional material provided by Exporter and Exporter certifies that it has complied with any and all intellectual property rights pertaining to the material provided. Any and all Exporter samples sent to the AmericaTowne Platform shall become the property of AmericaTowne once received and will be solely used to promote and market Exporter's products or service within AmericaTowne Platform.

	     9. Country of Origin Taxes and Fees. Exporter agrees that it is solely responsible for paying any and all taxes, if required, to the country of origin of the goods and services. For purchase and sales orders received after the Sample and Test Market Program, Exporter agrees that any customs and VAT payable in China will be paid by either including any such taxes in the end buyer's purchase price in the purchase order, and paying such taxes upon payment by buyer or paying such taxes directly to customs prior to the goods being accepted by the buyer.

	     10. Liability and Claims. AmericaTowne shall in no circumstance be liable to Exporter or authorized users of the AmericaTowne Platform for any error, mistake, misuse, delay, loss or omission whatsoever and howsoever occurring in communications between them or the level of safety with which they are conducted. Exporter unconditionally and irrevocably undertakes that it will not make any claim either legal or equitable against the Company, its affiliates and/or agents for any losses, damages, costs or expenses that it may suffer or incur as a result of or otherwise in connection with such error, mistake, misuse, delay, loss or omission.

	     11. Indemnity. Exporter agrees to fully and unconditionally indemnify and hold AmericaTowne, and its agents, representatives, contractors, attorneys and employees harmless against any claims, damages, penalties, losses or any expenses howsoever incurred as a result of or in connection with (i) any breach or alleged breach of representation, warranty or undertaking given by the exporter herein; (ii) any infringement or alleged infringement of intellectual property rights, including but not limited to patents, registered designs, copyrights or trade mark infringement arising as a result of the insertion of any material by Exporter or any agent of Exporter in AmericaTowne's website and/or AmericaTowne Platform; (iii) any claim that the material involves false or deceptive advertising or sale practices; (iv) any claim arising or in connection with proof of quality and/or (v) any third party claims whatsoever arising in or derived from or as a result of the insertion or providing any material by Exporter.

	     12. Proof of Quality. All statements, claims or representations ("Claims") in material submitted by Exporter for its products or services regarding the quality of its products or services must be (a) accompanied by a clear and written reference in the material to the independent survey, research or other source upon which the Claims are based; and (b) supported by the relevant independent survey, research or other source, a copy of which must be provided to AmericaTowne.

	
Page 5

	

	     13. Representations and Warranties of Exporter. Exporter hereby represents and warrants to AmericaTowne as follows:

	          (a)	This Agreement has been duly and validly executed and delivered by an authorized person and constitutes Exporter's legal, valid and binding obligation, enforceable against it in accordance with its terms; and that the execution, delivery and performance of this Agreement is within the signator's legal capacity and power; has been duly authorized by all requisite action on the signator's part; requires the approval or consent of no other persons; and neither violates nor constitutes a default under the (a) provision of any law, rule, regulation, order, judgment or decree to which Exporter is subject or which is binding upon Exporter, or (ii) the terms of any other agreement, document or instrument applicable to Exporter or binding upon it.

	          (b)	That, in the event of any breach by Exporter of any of its warranties, undertakings and/or other provisions of this Agreement, AmericaTowne shall have the right at its sole and absolute discretion to remove from the AmericaTowne Platform any material or samples placed by Exporter and/or to terminate this Agreement immediately without notice, in which case AmericaTowne shall not be liable to refund the Service Fee or any earned, but yet paid, Transaction Fee for such material so removed and Exporter hereby undertakes that it will not make any claims both legal or equitable against AmericaTowne, its employees, contractors, attorneys and/or agents for any losses, damages, costs or expenses that it may suffer or incur as a result of or otherwise in connection with such removal.

	          (c)	Exporter represents and warrants that it shall act in good faith in all respects and undertakes that (i) no third party intellectual property rights or any other rights will be infringed as a result of the publication of any listing on the AmericaTowne Platform or any website utilized by AmericaTowne in featuring Exporter's products or services and/or in any material supplied by Exporter to AmericaTowne in relation to or otherwise in connection with Exporter's products or services; (ii) all of Exporter's products or services comply with and will comply with all applicable laws and regulations, including without limitation, those relating to advertising; (iii) Exporter has obtained all necessary consents and licenses for using the products or services; and (iv) Exporter, if exporting US origin automobiles, will only export used automobiles, at no time will the Exporter attempt to export new automobiles from the US to China through the AmericaTowne Platform.

	          (d)	Exporter agrees that AmericaTowne reserves the sole and absolute discretion to decline to publish any material if it reasonably suspects that Exporter may involve the infringement of intellectual property rights or other rights of any third party, unless Exporter can, within three (3) business days of being requested to do so, provide evidence to the satisfaction of the AmericaTowne that it has the right to place use the material in question and/or the material does not infringe any intellectual property rights of any third party. Exporter agrees that AmericaTowne shall remove the material immediately if it reasonably suspects that the material may involve the infringement of intellectual property rights or other rights of any third party, unless it subsequently determines, using its own discretion, that the material does not infringe any intellectual property rights of any third party.

	          (e)	EXPORTER ACKNOWLEDGES AND AGREES THAT IT HAS READ THIS AGREEMENT AND AGREE TO ALL ITS TERMS AND CONDITIONS. EXPORTER

	
Page 6

	

	HAS INDEPENDENTLY EVALUATED THE DESIRABILITY OF PARTICIPATING IN THE AMERICATOWNE PLATFORM, SAMPLE AND TEST MARKET PROGRAM, AND IF APPLICABLE, ACCEPTED MARKET PROGRAM AND IS NOT RELYING ON ANY REPRESENTATION, GUARANTEE, OR STATEMENT OTHER THAN AS SET FORTH IN THIS AGREEMENT.

	     14. Representations and Warranties of AmericaTowne. AmericaTowne hereby represents and warrants to Exporter as follows:

	          (a)	It shall provide Exporter to a full-time staff in China to provide support and assistance, and to identify a network of potential buyers in China for Exporter's products and services;

	          (b)	It shall provide and coordinate any and all actions and procedures for customs and inspection clearance procedures and methods for Exporter that will allow them to clear customs and inspection in China in a prompt manner;

	          (c)	It shall provide methods and procedures for Exporter's products and services to be sampled and displayed in the AmericaTowne Platform;

	          (d)	It shall exercise commercially reasonable efforts to ensure that Exporter shall pay the least amount of VAT and other taxes required by the laws of China in full compliance with the laws of China;

	          (e)	It shall exercise commercially reasonable efforts in providing various financial programs to assist and support buyers in purchasing products from Exporter; and

	          (f)	It shall exercise commercially reasonable efforts to ensure high-level government officials from the Africa, USA and China in commerce, trade, investments and policy are invited to review and participate in the AmericaTowne Platform.

	     15. Relationship of Parties. The Parties agree that AmericaTowne is an independent contractor, and nothing in this Agreement will create any partnership, joint venture, agency, franchise, or employment relationship between them.

	     16.  Limitation of Liability. Exporter agrees that AmericaTowne will not be liable for any indirect, incidental, special, or consequential punitive or multiple damages, including without limitation any damages resulting from loss of use, loss of business, loss of revenue, loss of profits, or loss of data, arising in connection with this Agreement, AmericaTowne's performance of services or of any other obligations relating to this Agreement, even if AmericaTowne has been advised of the possibility of such damages. The foregoing limitation of liability shall apply regardless of the cause of action under which such damages are sought.

	     17.  Disclaimers of Warranty. AmericaTowne makes no express or implied warranties or representations with respect to the AmericaTowne Platform, Sample and Test Market Program, or Accepted Market Program (including, without limitation, warranties of fitness for a particular purpose, merchantability, non-infringement, or any implied warranties arising out of a course of performance, dealing, or trade usage).  In addition, AmericaTowne makes no representation that the operation of the AmericaTowne Platform (including exhibition showrooms, websites and other network properties) will be uninterrupted or error-free, and AmericaTowne will not be liable for
	
Page 7

	

	the consequences of any interruptions or errors.

	     18.  Settlement of Disputes. The Parties agree to use their best efforts to settle any dispute arising from the interpretation or performance in connection with this Agreement through negotiations.  In case no settlement can be reached, subject to Section 25 or Section 26, below, either Party may submit such matter to the American Arbitration Association ("AAA").The proceedings shall be conducted in English and be conducted in Mecklenburg County, North Carolina, the United States of America. The arbitration award shall be final and binding upon the Parties. This Section shall not be influenced by the termination or elimination of this Agreement. Each Party shall continue to perform its obligations in good faith according to the provisions of this Agreement except for the matters in dispute.

	     19. Force Majeure. Force Majeure, which includes but is not limited to, acts of governments, acts of nature, fire, explosion, typhoon, flood, earthquake, tide, lightning, war, means any event that is beyond the Party's reasonable control and cannot be prevented with reasonable care. However, any shortage of credit, capital or finance shall not be regarded as an event of Force Majeure. The affected Party who is claiming to be not liable to its failure of fulfilling this Agreement by Force Majeure shall inform the other Party, without delay.

	     20. Notices. Notices or other communications required to be given by any Party pursuant to this Agreement shall be written in English and shall be deemed to be duly given when it is delivered by email to the address stated below, or as subsequently supplemented, or by regular United States mail to the addresses identified in the introductory paragraph of this Agreement.

	     21.  Severability. Any provision of this Agreement that is invalid or unenforceable because of any inconsistency with relevant law shall be ineffective or unenforceable within such jurisdiction where the relevant law governs, without affecting in any way the remaining provisions hereof.

	     22.  Amendments and Supplement. Any amendment and supplement of this Agreement shall come into force only after Parties sign a written document.

	     23.  Governing Law; Consent to Jurisdiction. This Agreement will be governed, construed and enforced in accordance with and governed by the laws of the United States and the State of Delaware applicable to agreements made and to be performed in such jurisdiction without reference to conflicts of law principles.

	     24. Attorney's Fees.  If a Party shall commit a material breach of a term hereof, such party shall pay to the successful party all of the successful party's costs and expenses, including, without limitation, attorneys' and expert witness fees, incurred by such party in enforcing the terms of this Agreement.

	     25. Confidentiality. The Parties agree that, by virtue of this Agreement, they may receive or become aware of information belonging or relating to the other, its business, business plans, affairs or activities, which information is confidential and proprietary to the other party and/or its suppliers and/or customers and in respect of which they are bound by a strict duty of confidence ("Confidential Information").

	     In consideration of such Confidential Information being disclosed or otherwise made available to either Party for the purposes of the performance of this Agreement, the Parties agree

	
Page 8

	

	that they will not at any time, either before or after the termination of this Agreement, and either directly or indirectly, disclose, divulge or make unauthorized use of any Confidential Information, except to the extent to which such Confidential Information, is publicly known at the time of its disclosure or being made available to them; (b) after such disclosure or being made available to them, becomes publicly known otherwise than through a breach of this provision; and/or (c) disclosure is required by law, regulation or order of a competent authority (including any regulatory or governmental body or securities exchange) by a Party, provided that, where practicable, the other Party is given reasonable advance notice of the intended disclosure. The Parties agree that upon the earlier of a request from the other party or the termination of this Agreement, each Party shall return to the other or destroy all documents or records in any medium or format containing any Confidential Information that are in its possession or control and will not retain any copies of them, and the provisions of this Section 24 will continue without limit of time, notwithstanding the termination of this Agreement for any reason.

	     This Section 25 does not apply to AmericaTowne's reporting obligations as a publicly-reporting company under the rules promulgated by the SEC.

	     The Parties irrevocably consent that any legal action or proceeding against them under, arising out of or in any manner relating to this Section 24, may be brought only in a court with jurisdiction located in, or the federal district court the district of which includes, Mecklenburg County, North Carolina and the Parties each irrevocably consent to that venue and to the personal jurisdiction thereof. The Parties hereby expressly and irrevocably waive any claim or defense in any action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis.

	     26.  Noncompetition and Noncircumvention. The Parties agree that each will refrain, directly or indirectly from utilizing information gained from the other in a way other than as contemplated hereunder. Further, neither Party will circumvent the other by attempting to take advantage of research and development performed by the other. The Parties agree that this Section 26 is an essential and material part of this Agreement.  As of the Effective Date, Exporter agrees that it will take no action to compete with or adversely affect AmericaTowne's efforts to secure funding, where necessary, primarily through Exim Bank and elsewhere under the guidance and the direction of AmericaTowne.  As such, no Party to this Agreement shall attempt to compete or circumvent in any way at any time the purpose of this Agreement or those including the entities and people that have been charged to carry out this Agreement.

	     The Parties irrevocably consent that any legal action or proceeding against them under, arising out of or in any manner relating to this Section 26, may be brought only in a court with jurisdiction located in, or the federal district court the district of which includes, Mecklenburg County, North Carolina and the Parties each irrevocably consent to that venue and to the personal jurisdiction thereof. The Parties hereby expressly and irrevocably waive any claim or defense in any action or proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis.

	     27.  Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and assigns. Nothing in this Agreement shall be construed to create any rights in third parties as third-party beneficiaries or otherwise. This Agreement shall not be assigned to any party.

	     28.  Counterpart Signatures. This Agreement may be executed in numerous counterparts,

	
Page 9

	

	all of which shall be considered one and the same agreement. For purposes of this Agreement, facsimile or electronic signatures shall be considered original signatures.

	     29. Assignment and Subcontracting. This Agreement is personal to the Parties and, except to the extent necessary for the collection of outstanding bills through a factoring agent, Exporter shall not without the prior written approval of the Company: (a) assign, mortgage, charge or otherwise transfer or deal in, or create any trust over, any of its rights; or (b) subcontract or otherwise delegate the whole or any part of its rights or obligations under this contract to another person.

	     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative.
 

AMERICATOWNE

By:   /s/Alton Perkins		

Name: Alton Perkins, CEO

Date: Nov 6, 2014

EXPORTER

By:  /s/Lillian Kathungu		

Name: Lillian Kathungu, President 

Date: Nov 6, 2014	

 Page 10Exhibit 10.1

 

 

October 15, 2014

 

Mr. John Worthington

 

Dear John:

 

It is with a great deal of pleasure that we write this letter to formalize our invitation for you to join us as a senior executive at New York & Company in the position of President, COO.  We are also inviting you to serve as a member of our Executive Committee.  We are pleased and excited at the prospect of having you as our partner.

 

The following points will outline the terms of our offer:

 

	
Position:
    	
 
    	
President,   COO
    
	
 
    	
 
    	
Start   date is to be determined.
    
	
 
    	
 
    	
 
    
	
Base   Salary:
    	
 
    	
$750,000
    
	
 
    	
 
    	
 
    
	
Incentive Compensation:
    	
 
    	
You will be eligible to participate in the   Incentive Compensation (cash bonus program) at a target level of 75% of your   annual base salary.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All Incentive Compensation (IC) payouts are   based on New York & Company profit results and can vary from zero   (0) to a maximum of double your target level.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
IC is paid three times a year at the end of   each bonus period (August for the Spring season and March for both   the Fall season and the fiscal year). The payouts are weighted 25%/Spring,   25%/Fall and 50%/ Fiscal Year of target earned each bonus period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Your participation in the IC program will   begin with the Fall 2014 season. Your bonus eligibility for 2014 will be   prorated based upon your date of hire and the season in which you begin IC   participation. For
    

    

	
John Worthington
    	
October   15, 2014
    

 

2

 

	
 
    	
 
    	
example, if your start date is in   November 2014, you will be eligible for a 1⁄2 bonus for Fall 2014 and a 1⁄4   bonus for Fiscal 2014. Of course, an IC payout is predicated on the Company   making its profit targets.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For the 2015 plan year, your IC payout is guaranteed at par for Spring   2015 ($140,625) and at par for Fall 2015 ($140,625). Your Fiscal 2015 payout will be predicated   upon the Company making its profit targets.
    
	
 
    	
 
    	
 
    
	
Relocation:
    	
 
    	
A relocation package is to be discussed.   However, you will receive an allowance of up to $7,500 per month (gross) for   a period of twelve months, to aid in your living expenses.
    
	
 
    	
 
    	
 
    
	
Reimbursement:
    	
 
    	
If you voluntarily resign prior to the second   year anniversary following your date of hire, you agree to reimburse New   York & Company for any relocation expenses and your living expense   allowance as follows: If you voluntarily resign in less than twelve months   following your start date, you agree to repay 100% of these expenses. If you   voluntarily resign after twelve months, but prior to twenty-four months from   your start date, you agree to repay 50% of these expenses.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Initial and Date:   
    	
/s/ JW; October 24, 2014
    
	
 
    	
 
    	
 
    
	
Stock Appreciation Rights:
    	
 
    	
You will receive 750,000 SARs in New   York & Company common stock, with a grant price equal to the closing   price on your start date. This grant will vest over a period of four years at   25%, 25%, 25%, and 25% respectively.
    
	
 
    	
 
    	
 
    
	
Restricted Stock:
    	
 
    	
You will receive 250,000 shares of Restricted   Stock in New York & Company common stock, with a grant price equal   to the closing price on your start date. This grant will vest 100% on the   third anniversary of the grant.
    
	
 
    	
 
    	
 
    
	
Paid Time Off:
    	
 
    	
You will be eligible for 22 PTO days beginning   in 2015.
    
	
 
    	
 
    	
 
    
	
Benefits:
    	
 
    	
The full extent of coverage is explained in   the enclosed Benefit Summary. Some additional highlights as an Executive   Committee member are also enclosed.
    
	
 
    	
 
    	
 
    
	
Management Stock Purchase
    	
 
    	
In addition to the benefits outlined in the   enclosed
    

 

3

 

	
Plan (MSPP):
    	
 
    	
Benefit summaries, as an Executive Committee member,   you will have an opportunity to defer up to 25% of your Incentive   Compensation payments into New York & Company Deferred Stock Units   (DUs), which will be held in a non-qualified plan. Deferrals will be matched   by the Company dollar-for-dollar in DUs and the Company Match will be subject   to three (3) year cliff vesting.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Deferrals are to be elected in the year prior   to the year in which the IC is earned and the minimum deferral period is   three (3) years. However, as a new member of the Executive Committee, you   will be given the opportunity to participate in this program in 2014 and   prior to the 30th day from your start date you   may make a deferral for your Fall and Fiscal 2014 Incentive Compensation.
    

 

This offer is based on your representation that you are under no legal impediment to accepting our offer and performing the anticipated services.

 

As a member of the Executive Committee, upon acceptance of our offer, you are requested to sign the enclosed Employment Agreement, which includes, but is not limited to, the following:

 

·  Six months of severance pay if terminated without cause by the Company prior to the two year anniversary of your start date or twelve months of severance pay if terminated without cause by the Company thereafter, subject to performance of all post employment obligations set forth in the agreement.

 

·   A standard non-solicitation agreement to cover a period of 12 months following separation from the Company.

 

·   A non-compete agreement to cover a period of six months if terminated without cause by the Company prior to the two year anniversary of your start date or twelve months if terminated without cause by the Company thereafter.

 

John, we are excited at the prospect of your joining us at New York & Company to work with us to build a great future.

 

Please call me at                   with any questions you may have.  We ask that you sign and return one of the attached copies of this letter and one of the attached copies of the Employment Agreement.

 

4

 

	
Sincerely,
    	
 
    	
I accept the foregoing offer as of the date   above.
    
	
 
    	
 
    	
 
    
	
/s/ Faeth Bradley
    	
 
    	
 
    
	
Faeth Bradley
    	
 
    	
/s/ John Worthington
    
	
EVP, Human Resources
    	
 
    	
John Worthington
    

 

 

 

John Worthington

 

Re:  Letter Agreement of Employment

 

Dear John:

 

This letter agreement (this “Agreement”) sets forth the terms and conditions of your employment, and your employment relationship, with Lerner New York, Inc. (the “Company”).  Your execution of this Agreement will represent your acceptance of all of the terms set forth below.

 

1.                                                                                      Nature of Agreement and Relationship.  This Agreement does not represent an employment contract for any specified term.  Your employment relationship thus will remain “at will,” meaning that, subject to the terms hereof, either party to this Agreement may terminate the employment relationship at any time for any lawful reason.

 

2.                                                                                      Job Title and Duties.  Your job title will be President, COO.  You will be expected to devote all of your full time efforts to the performance of the duties and responsibilities normally associated with this position, including those from time to time that may be assigned to you by your Supervisor, the President, the Chief Executive Officer or the Board of Directors of the Company (or the designee of any of the foregoing).

 

3.                                                                                      Salary.  For the 12 month period ending on the last Saturday of each January (the last day of the fiscal year), you will receive a base salary at the rate of Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000) per annum (“Base Salary”), subject to the remaining provisions of this Section.  For the remainder of the current fiscal year starting on the date of this Agreement, your Base Salary will be pro rated based on the number of days remaining in such fiscal year divided by 365.  At the Company’s sole discretion, your Base Salary may be increased or decreased based on your performance and the performance of the business.  You will be paid in accordance with the Company’s normal payroll policies and practices, with all applicable deductions being withheld from your paychecks.

 

4.                                                                                      Bonus.  You will be eligible to participate in the Company’s then current bonus plan, in accordance with its terms and conditions, and to receive performance based bonuses pursuant to any formula that may be established.  For the Company’s current fiscal year, your bonus target for the spring bonus (relating to the Company’s results for the first and second fiscal quarters of each fiscal year) will be 18.75% of your Base Salary; for the fall bonus (relating to the Company’s results for the third and fourth fiscal quarters of each fiscal year) will be 18.75% of your Base Salary; and for the annual bonus (relating to the Company’s results for the fiscal year) will be 37.5% of your Base Salary.  Any amount payable in respect of the spring bonus will be

 

 

paid in the calendar month immediately following the end of the applicable performance period to which that bonus relates.  Any amount payable in respect of the fall or the annual bonus will be paid within two and one half months following the end of the applicable performance period to which that bonus relates.  All bonuses are determined at the Company’s sole discretion, and the Company has the sole discretion to modify or terminate any bonus plan and that plan will govern your right, if any, to a bonus payment upon termination of your employment.

 

5.                                                                                      SARs, and Other Long Term Incentives.  You will be eligible to receive awards under SARs, restricted stock or other equity based long term incentive plans established by the Company (or an Affiliate) that cover executive officers of the Company.  The term “Affiliate” means any corporation, partnership, limited liability company or other entity (other than the Company) that controls or is controlled by the Company, whether directly or indirectly, such as a parent company or subsidiary.  All equity awards described in this paragraph are determined at the Company’s sole discretion, and the Company has the sole discretion to modify or terminate any SARs, restricted stock or other equity based long term incentive plan and that plan will govern your rights, if any, relating to any equity award(s) you have received, or may be entitled to receive, upon termination of your employment.

 

6.                                                                                      Employee Benefits.  You will be entitled to participate in all employee benefits plans, practices and programs maintained by the Company and made available to senior executives generally and as may be in effect from time to time (the “Benefits Plans”).  Your participation in the Benefits Plans will be on the same basis and terms as are applicable to senior executives of the Company generally.  Benefits Plans include, but are not limited to, savings and retirement plans, deferred compensation, health and prescription drug benefits, disability benefits, other insurance programs, vacation and other leave, merchandise discounts and business expense procedures.  Plan documents setting forth terms of certain of the Benefits Plans are available upon request, which plan documents control all questions of interpretation concerning applicable Benefits Plans, including your rights, if any, upon termination of your employment.  The Benefits Plans are subject to modification or termination by the Company at any time, at its sole discretion, in accordance with their terms.

 

7.                                                                                      Severance Pay.  Upon your termination of employment by the Company and all Affiliates without Cause (as defined below), but subject to your performance of all post employment obligations set forth in this Agreement, you will be entitled to receive severance pay for six (6) months if employment is terminated prior to the two year anniversary of the start date of employment under this letter and twelve (12) months if terminated thereafter (“Severance Period”) at your final Base Salary (“Severance Pay”), beginning the first pay period following your separation date and ending upon the earlier of:  (i)  your receipt of the number of weekly payments coinciding with the length of the Severance Period (such number of payments to be adjusted if any change is made to the frequency of regularly scheduled payroll dates) or (ii) your first day of employment with another employer, whichever is earlier.  The Severance Pay shall be conditioned upon your execution and delivery to the Company of a general release of claims in favor of the Company in a form reasonably satisfactory to the Company.  Such release shall be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following your termination of employment.  If you fail to execute such release as provided above, you shall forfeit all of your rights to receive the Severance Pay.  If you obtain employment at an annual salary that is lower than your final Base Salary, you will continue to receive the differential between the two rates of pay for the balance of the Severance Period.  If you obtain employment at an annual salary that is the same or higher than your final Base Salary, no further payments will be owed.  This Severance Pay, which will be subject to applicable deductions required by law, will be paid on the Company’s regular payroll dates as in effect on the date of each such payment for the balance of the “Severance Period” following your termination date, as outlined above.  For purposes of this Agreement, “Cause” means the occurrence of any of the following:  (i) your failure to perform your duties to the Company (other than as a result of death or a physical or mental incapacity); (ii) your commission of, indictment for, conviction of, or plea of guilty or nolo contendere to, a felony (regardless of the nature of the felony) or any other crime involving 

 

 

dishonesty, fraud or moral turpitude; (iii) your gross negligence or misconduct (including, but not limited to, acts of fraud, criminal activity, professional misconduct, dishonesty, or breach of trust or other fiduciary duty) in connection with the performance of your duties and responsibilities to the Company or with regard to the Company or its assets; (iv) your failure to comply with the rules and policies of the Company governing employee conduct or with the lawful directives of the Board of Directors of the Company or a more senior executive of the Company; or (v) your breach of this Agreement or any obligation under any non disclosure, non solicitation, non competition or other restrictive covenant, employment or any other agreement with the Company.  Any determination of Cause will be made in the good faith discretion of the Company.

 

8.                                                                                      Code Section 409A Compliance.

 

8.1.                            It is the Company’s intent that compensation and benefits to which you are entitled under this Agreement not be treated as “nonqualified deferred compensation” under Section 409A of the Internal Revenue Code of 1986, as amended, and the treasury regulations and other official guidance promulgated thereunder (“Code Section 409A”), and that any ambiguities in the construction of this Agreement be interpreted in order to effectuate such intent.  In the event that the Company determines, in its sole discretion, that any compensation or benefits to which you are entitled under this Agreement could be treated as “nonqualified deferred compensation” under Code Section 409A unless this Agreement is amended or modified, the Company may, in its sole discretion, amend or modify this Agreement without obtaining any additional consent from you, so long as such amendment or modification does not materially affect the net present value of the compensation or benefits to which you otherwise would be entitled under this Agreement.

 

8.2.                            A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If you are deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered “nonqualified deferred compensation” under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall be made or provided at the date which is the earlier of (a) the expiration of the six (6) month period measured from the date of your “separation from service,” and (b) the date of your death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

8.3.                            If a general release of claims, as contemplated under Section 7 hereof, is executed and delivered (and no longer subject to revocation) in the manner provided in said Section 7, then the following shall apply:

 

(a)                                 To the extent that the Severance Pay is not “nonqualified deferred compensation” for purposes of Code Section 409A, then the Severance Pay shall commence upon the first scheduled payment date immediately following the date that the release is executed, delivered and no longer subject to revocation (the “Release Effective Date”).  The first such cash payment shall 

 

 

include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Agreement applied as though such payments commenced immediately upon your termination of employment, and any payments made thereafter shall continue as provided herein.

 

(b)                                 To the extent that the Severance Pay is “nonqualified deferred compensation” for purposes of Code Section 409A, then such payments or benefits shall be made or commence upon the sixtieth (60th) day following your termination of employment.  The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately upon your termination of employment, and any payments made thereafter shall continue as provided herein.

 

8.4.                            For purposes of compliance with Code Section 409A, (a) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by you, (b) any right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit, and (c) no such reimbursement, expenses eligible for reimbursement, or in kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other taxable year.

 

8.5.                            For purposes of Code Section 409A, your right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.

 

8.6.                            In no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

 

8.7.                            In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on you by Code Section 409A or damages for failing to comply with Code Section 409A.

 

9.                                                                                      Confidential Information, Intellectual Property.

 

9.1.                            Confidentiality.  You agree not to disclose, distribute, publish, communicate or in any way cause to be disclosed, distributed, published, or communicated in any way or at any time, Confidential Information (as defined herein), or any part of Confidential Information, to any person, firm, corporation, association, or any other operation or entity except on behalf of the Company in performance of your duties and responsibilities for the Company, and then only in a fashion consistent with protecting the Confidential Information from unauthorized use or disclosure, except as otherwise approved by the Company.  You further agree not to use or permit the reproduction of any Confidential Information except on behalf of the Company in your capacity as an employee of the Company.  You agree to take all reasonable care to avoid the unauthorized disclosure or use of any Confidential Information.  You assume responsibility for and agree to indemnify and hold harmless the Company from and against any disclosure or use of the Confidential Information in violation of this Agreement.

 

9.2.                            Confidential Information.  For the purpose of this Agreement, “Confidential Information” shall mean any written or unwritten information which relates to or is used in the Company’s business (including, without limitation, information related 

 

 

to the names, addresses, buying habits and other special information regarding past, present and potential customers, employees and suppliers of the Company; customer and supplier contracts and transactions or price lists of the Company and suppliers; all agreements, files, books, logs, charts, records, studies, reports, processes, schedules and statistical information relating to the Company; all products, services, programs and processes sold, and all computer software licensed or developed by the Company; data, plans and specifications related to present or future development projects of the Company; financial or marketing data respecting the conduct of the present or future phases of business of the Company; computer programs, computer or web based training programs, systems or software; ideas, inventions, trademarks, business information, know how, processes, techniques, improvements, designs, redesigns, creations, discoveries and developments of the Company; and finances and financial information of the Company) which the Company deems confidential and proprietary, which is generally not known to others outside the Company, or which gives or tends to give the Company a competitive advantage over persons who do not possess such information or the secrecy of which is otherwise of value to the Company in the conduct of its business regardless of when and by whom such information was developed or acquired, and regardless of whether any of these are described in writing, copyrightable or considered copyrightable, patentable or considered patentable.  “Confidential Information” shall not include general industry information or information which is publicly available or otherwise known to those persons outside the Company working in the area of the business of the Company or is otherwise in the public domain without breach of this Agreement or information which you have lawfully acquired without an obligation to maintain the information in confidence from a source other than the Company.  “Confidential Information” specifically includes information received by the Company from others, including the Company’s clients, that the Company has an obligation to treat as confidential and also includes any confidential information acquired or obtained by you while in the employment of any Affiliate.

 

9.3.                            Invention Ownership.  With respect to information, inventions and discoveries developed, made or conceived by you, either alone or with others, at any time during your employment by the Company and whether or not within normal working hours, arising out of such employment or pertinent to any field of business or research in which, during such employment, the Company is engaged or (if such is known to or ascertainable by you) is considering engaging, you agree:

 

(a)                                 that all such information, inventions and discoveries, whether or not patented or patentable, shall be and remain the sole property of the Company;

 

(b)                                 to disclose promptly to an authorized representative of the Company all such information, inventions and discoveries and all information in your possession as to possible applications and uses thereof;

 

(c)                                  not to file any patent applications relating to any such invention or discovery except with the prior consent of an authorized representative of the Company; and

 

(d)                                 at the request of the Company, and without expense or additional compensation to you, to execute such documents and perform such other acts as the Company deems necessary, to obtain patents on such inventions in a jurisdiction or jurisdictions designated by the Company, and to 

 

 

assign to the Company or its designee such inventions and all patent applications and patents relating thereto.

 

Both the Company and you intend that all original works of authorship within the purview of the copyright laws of the United States authored or created by you in the course of your employment with the Company will be works for hire within the meaning of such copyright laws.

 

9.4.                            Confidentiality of Inventions; Return of Materials and Confidential Information.  With respect to the information, inventions and discoveries referred to in Section 9.3, and also with respect to all other information, whatever its nature and form and whether obtained orally, by observation, from graphic materials, or otherwise (except such as is generally available through publication) obtained by you during or as a result of your employment by the Company and relating to any product, service, process, or apparatus or to any use of any of them, or to materials, tolerances, specifications, costs (including manufacturing costs), prices, or to any plans of the Company, you agree:

 

(a)                                 to hold all such information, inventions and discoveries in strict confidence and not to publish or otherwise disclose any portion thereof except with the prior consent of an authorized representative of the Company;

 

(b)                                 to take all reasonable precautions to ensure that all such information, inventions, and discoveries are properly protected from access by unauthorized persons;

 

(c)                                  to make no use of any such information, invention, or discovery except as required or permitted in the performance of your duties and responsibilities for the Company; and

 

(d)                                 upon termination of your employment by the Company, or at any time upon request of the Company, to deliver to the Company all graphic materials and all substances, models, prototypes and the like containing or relating to Confidential Information or any such information, invention, or discovery, all of which graphic materials and other things shall be and remain the sole property of the Company.  The term “graphic materials” includes letters, memoranda, reports, notes, notebooks, books of account, drawings, prints, specifications, formulae, data printouts, microfilms, magnetic tapes and disks and other documents and recordings, together with all copies thereof.

 

10.                                                                               Non Solicitation.  Regardless of whether you are eligible to receive Severance Pay, you agree that, if your employment with the Company ends for any reason, you will not, for a period of twelve (12) months following such termination of employment, (i) directly or indirectly, either for yourself or for any other person, business, company or entity, hire from the Company or any Affiliate, or attempt to hire, divert or take away from the Company or any Affiliate, any of the then current officers or employees of the Company or any Affiliate, (ii) interfere with or harm, or attempt to interfere with or harm, the relationship of the Company or any Affiliate with any person who at any time was an employee, customer or supplier of the Company or any Affiliate or otherwise had a business relationship with the Company or any Affiliate, or (iii) unless compelled by law to do so, directly or indirectly, knowingly make any statement or other communication that impugns or attacks the reputation or character of the Company or any Affiliate, or damages the goodwill of the Company or any Affiliate, or knowingly take any action, directly or indirectly, that would interfere with any contractual or customer or supplier relationships of the Company or any Affiliate.

 

 

11.                                                                               Non Competition.                                             For a period of six (6) months if you resign or your employment is terminated by the Company with Cause prior to the two (2) year anniversary of your start date of employment under this letter and twelve (12) months if you resign or your employment is terminated by the Company with Cause thereafter, you may not and will not, within the United States of America, directly or indirectly, without the prior written consent of the Company’s Chief Executive Officer or its Board of Directors (which may be given or withheld in its sole discretion), own, manage, operate, join, control, be employed by, consult with or participate in the ownership, management, operation or control of, or be connected with (as a stockholder, partner or otherwise) any business, partnership, firm, company, corporation or other entity engaged in the retail business of moderate women’s fashion apparel, accessories and related products or any other product sold or intended to be sold by the Company or an Affiliate during your employment with the Company.  Notwithstanding the foregoing, your beneficial ownership after your termination of employment with the Company, either individually or as a member of a group, of not more than two percent (2%) of the voting stock of any publicly held corporation shall not be a violation of this provision.

 

12.                                                                               Remedies.  You acknowledge that money will not adequately compensate the Company for the substantial damages that will arise upon the breach of any provision of Sections 9, 10 and 11 of this Agreement and that the Company would have no adequate remedy at law.  For this reason, any claim the Company may make that you have breached or are threatening to breach Sections 9, 10 or 11 is not subject to mandatory arbitration under Section 15.  Instead, if you breach or threaten to breach any provision of Sections 9, 10 or 11, the Company will be entitled, in addition to other rights and remedies, to specific performance, injunctive relief and other equitable relief to prevent or restrain any breach or threatened breach of Sections 9, 10 or 11.  The Company may obtain such relief from (i) any court of competent jurisdiction, (ii) an arbitrator acting pursuant to Section 15 hereof, or (iii) a combination of the two (e.g., by simultaneously seeking arbitration under Section 15 and a temporary injunction from a court pending the outcome of the arbitration).  It shall be the Company’s sole and exclusive right to elect which approach to use to vindicate its rights.  You also agree that in the event of a breach (or any threat of breach) the Company shall be entitled to obtain an immediate injunction and restraining order to prevent such breach or threatened breach or continued breach, without having to prove damages, and to obtain all costs and expenses, including reasonable attorneys’ fees and costs.  In addition, the existence of any claim or cause of action by you against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the restrictive covenants of this Agreement.

 

13.                                                                               Acknowledgment of Reasonableness.  You and the Company specifically agree that the provisions of the restrictive covenants contained in this Agreement, including the post employment covenants regarding non solicitation and non competition, are reasonable and that the Company would not have entered into this Agreement but for the inclusion of such covenants.  You understand that the Company’s business is nationwide, and, therefore, a nationwide restrictive covenant is reasonable.  If a court or arbitrator determines that any provision of any such restrictive covenant is unreasonable, whether in period of time, geographical area, or otherwise, you and the Company agree that the covenant shall be interpreted and enforced to the maximum extent which a court or arbitrator deems reasonable.  In addition, you and the Company authorize any such court or arbitrator to reform these restrictions to the minimum extent necessary.

 

14.                                                                               Company Property.  Upon your termination of employment for any reason, you will promptly return to the Company all Company related documents and Company property within your possession or control.

 

15.                                                                               Arbitration of Disputes.  Except as set forth in Section 12, any dispute, claim or difference arising out of or in relation to your employment will be settled exclusively by binding arbitration administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes before a single arbitrator.  You expressly understand and 

 

 

agree that claims subject to arbitration under this section include asserted violations of the Employee Retirement and Income Security Act of 1974; the Age Discrimination in Employment Act; the Older Worker’s Benefit Protection Act; the Americans with Disabilities Act; Title VII of the Civil Rights Act of 1964 (as amended); the Family and Medical Leave Act; and any law prohibiting discrimination, harassment or retaliation in employment, whether based on federal, state or local law; any claim of breach of contract, tort, promissory estoppel or detrimental reliance, defamation, intentional infliction of emotional distress; or the public policy of any state, or any other federal, state or local law.  The arbitration will be held in New York, New York unless you and the Company (each a “Party,” and jointly, the “Parties”) mutually agree otherwise.  To the extent permitted by law, each Party will bear its own costs and fees of the arbitration, and other fees and expenses of the arbitrator will be borne equally by the Parties; provided, however, that the arbitrator will be empowered to require any one or more of the Parties to bear all or any portion of fees and expenses of the Parties or the fees and expenses of the arbitrator in the event that the arbitrator determines such Party has acted in bad faith.  The arbitrator will have the authority to award any remedy or relief that a court of the State of New York could order or grant.  The decision and award of the arbitrator will be binding on all Parties.  Either Party to the arbitration may seek to have the ruling of the arbitrator entered in any court having jurisdiction thereof.  Each Party agrees that it will not file suit, motion, petition or otherwise commence any legal action or proceeding for any matter which is required to be submitted to arbitration as contemplated herein, except in connection with the enforcement of an award rendered by an arbitrator and except to seek the issuance of an injunction or temporary restraining order pending a final determination by the arbitrator.

 

16.                                                                               Post Termination Cooperation.  As is required of you during employment, you agree that during and after employment with the Company you will, without expense or additional compensation to you, cooperate with the Company or any Affiliate in the following areas:

 

16.1.                     Cooperation With the Company.  You agree (a) to be reasonably available to answer questions for the Company’s (or any Affiliate’s) officers regarding any matter, project, initiative or effort for which you were responsible while employed by the Company and (b) to cooperate with the Company (and with any Affiliate) during the course of all third party proceedings arising out of the Company’s (or any Affiliate’s) business about which you have knowledge or information.  For purposes of this Agreement, (c) “proceedings” includes internal investigations, administrative investigations or proceedings and lawsuits (including pre trial discovery and trial testimony) and (d) “cooperation” includes (i) your being reasonably available for interviews, meetings, depositions, hearings or trials without the need for subpoena or assurances by the Company (or any Affiliate), (ii) providing any and all documents in your possession that relate to the proceeding, and (iii) providing assistance in locating any and all relevant notes and documents.

 

16.2.                     Cooperation With Media.  You agree not to communicate with, or give statements to, any member of the media (including print, television or radio media) relating to any matter (including pending or threatened lawsuits or administrative investigations) about which you have knowledge or information (other than knowledge or information that is not Confidential Information as defined in Section 9.3) as a result of employment with the Company.  You also agree to notify the Chief Executive Officer or his designee immediately after being contacted by any member of the media with respect to any matter affected by this section.

 

17.                                                                               Entire Agreement.  This Agreement constitutes your entire agreement with the Company relating to the subject mater hereof, and supersedes in its entirety any and all prior agreements, understandings or arrangements with the Company.

 

 

18.                                                                               Governing Law.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the choice of law principles thereof that would result in the application of the laws of any other jurisdiction.

 

19.                                                                               Survival of Provisions.  Sections 8 through 18 will survive the termination of your employment for any reason and shall not be affected by any transfer(s) between the Company and its Affiliate(s).

 

20.                                                                               Understandings and Representations.  You should not sign this Agreement until you understand its terms and conditions.  Your execution of this Agreement represents your acknowledgement that you have take all steps you believe necessary, including consultation with financial and legal advisors of your choice, to understand this Agreement.

 

 

Sincerely,

 

	
By:
    	
/s/   Faeth Bradley
    	
 
    	
Dated:
    	
October 24,   2014
    
	
 
    	
Faeth   Bradley
    	
 
    	
 
    	
 
    
	
 
    	
Executive   Vice President
    	
 
    	
 
    	
 
    
	
 
    	
Human   Resources
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   John Worthington
    	
 
    	
Dated:
    	
October 24,   2014
    
	
 
    	
John   Worthington
    	
 
    	
 
    	
 
    
	
 
    	
President, COO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]