Document:

Document

EMPLOYEE CONFIDENTIALITY AND NON-COMPETE AGREEMENT
This Agreement is effective as of May 25, 2022, between WESTWOOD HOLDINGS GROUP, INC., including any and all subsidiaries and affiliates (collectively the “Company”), and Fabian Gomez (the “Employee”).
The parties agree as follows:
1.ACCESS TO CONFIDENTIAL INFORMATION AND GOODWILL.  
(a)    Company agrees to provide Employee with proprietary and confidential information developed and/or owned by Company, and of which Employee does not have previous knowledge, including for example, and without limitation, unique investment approaches, sales and marketing programs and materials, marketing and business strategies, client lists and profile data, investment advisory contracts and fee schedules, trademarks, technical information, computer software programs and electronic information, financial and other information concerning its operations (collectively, “Confidential Information”).  Employee recognizes that (i) his or her business role with Company requires access to Confidential Information; (ii) such Confidential Information is of special value to the Company; and (iii) if such information became known to any person competing with the Company, irreparable damage could result to the Company. 
(b)    Employee acknowledges that Company has and owns certain goodwill that provides Company with a competitive advantage, including Company’s strong brand and reputation (the “Goodwill”). Employee further acknowledges that (i) the Goodwill, and successful execution of Company’s day-to-day functions, depend on formation of relationships of trust and confidence between individual employees and Company clients; (ii) Company’s continued growth and viability depend on nurturing the relationships between its own employees and its clients and on maintaining its own relationship with employees whom it has placed in a position to form client relationships and necessarily supported while those relationships formed and grew; and (iii) the Goodwill, and Company’s positive reputation or position in the eyes of its clients or potential clients, often manifests itself through repeat business with existing clients and through referrals to potential clients.  Company agrees to provide Employee with the institutional training, support and synergy that will enable Employee to provide services of the quality that clients of Company value highly and that form, at least in part, the basis for the Goodwill owned by Company.  Employee recognizes that he or she will or may have close association with Company’s clients, which will or may cause those clients to associate Employee with the products or services of the Company, without paying due regard to the role of the Company as a whole, including its entire team of professionals, in the creation and delivery of those products and services.  
(c)    Employee agrees that the Company must protect its business, including the Confidential Information and Goodwill.  In exchange for the Company’s promise to provide the Confidential Information and the institutional training, support and synergy referenced above, as well as the other consideration provided herein and elsewhere, Employee agrees to all of the covenants set forth below.   Employee further agrees that the covenants set forth below are reasonable, consistent with Employee’s and Company’s best interests, to protect the Company and its affiliates.
2.CONFIDENTIALITY COVENANT.  

(a)Employee covenants, unless required as part of his or her employment or with the Company’s prior written consent, not to disclose or communicate to third parties any Confidential Information, however acquired, including Confidential Information of companies with whom the Company has a business relationship. All Confidential Information received by Employee during his or her employment remains the Company’s exclusive property and shall be returned immediately upon termination of employment or at any time as requested by the Company.  Employee further agrees, upon termination of employment, to deliver to the Company or destroy any Confidential Information in his or her possession.
(b)Pursuant to the Defend Trade Secrets Act of 2016 (18 U.S.C. 1833(b)), an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in confidence either directly or indirectly to a Federal, State, or local government official, or to an attorney, solely for the purpose of reporting or investigating, a violation of law.  An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret made in a complaint, or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An employee who files a lawsuit alleging retaliation by the company for reporting a suspected violation of the law may disclose the trade secret to his or her attorney and use the trade secret in the court proceeding, if the employee files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.  This paragraph will govern to the extent it may conflict with any other provision of this Agreement.
(c)Employee warrants that he or she is not bound by any other agreement that would be breached by execution of this Agreement or which would prevent him from performing his or her duties at the Company.  Employee warrants that he or she has not retained proprietary information of any prior employer and will not use such information in carrying out his or her duties for the Company.
(d)In the event of a breach or threatened breach by Employee of the provisions of this Section 2, Company shall be entitled to an injunction restraining Employee from disclosing and/or using the Company’s Confidential Information (provided Company establishes the elements required for injunctive relief) and may pursue other remedies for such breach or threatened breach, including recovery of damages from Employee.
3.INVESTMENT PERFORMANCE RESULTS; COPYRIGHTABLE WORKS.  
(a)Employee agrees that the investment performance of accounts managed by Company is attributable to its entire team of professionals and not to any single individual, that performance results of all present and future Company products are Company’s exclusive property, and that he or she will not attempt to present as his or her own such performance or composite performance at any subsequent employer.  Nothing in the foregoing paragraph is intended to prevent Employee from discussing Employee’s own job responsibilities and past performance in connection with any application or interview process with a prospective employer.
    
- 2 -

(b)Employee agrees that Company owns copyrightable works developed by Employee on Company time using Company resources during the course and scope of his or her employment.  Employee agrees, if requested by Company and without cost, to execute written acknowledgments or assignments of copyright ownership of such works in order to preserve Company’s rights.  Employee agrees not to assert any rights to attribution and integrity (“moral rights”) he or she may have in any such copyrightable works.
4.NON-COMPETITION/NON-SOLICITATION COVENANT.
(a)Employee agrees that, for twelve (12) months following termination of his or her employment at Company, whether by him or her or by Company and whether with or without cause (“Non-Competition Term”), Employee will not in any capacity provide investment advisory services or investment management services to any person or entity in the United States that is or was a client of Company with whom Employee did business and/or had personal contact during the course and scope of Employee’s employment with Company.
(b)Employee also agrees that, during his or her employment with Company, and for twenty-four (24) months following termination of his or her employment, whether by Employee or by Company and whether with or without cause (“Non-Solicitation Term”), Employee will not:
(i)    solicit any person or entity with whom Employee does or did business and/or has or had personal contact during the course and scope of Employee’s employment with Company, including without limitation consultants used by Company’s clients, to withdraw, or to cause the withdrawal of, any funds as to which Company provides investment management services, or attempt to cause such person or entity not to engage Company for investment management services; and/or
(ii)    solicit any current employee of Company as of the date of the solicitation to terminate his or her employment with Company and/or to enter into competition with Company.
If Employee violates any of the restrictions contained in this Section 4, the Non-Competition Term and/or Non-Solicitation Term shall be suspended and will not run in favor of Employee from the time of the commencement of any such violation until the time when the Employee cures the violation to the Company’s satisfaction.
(c)Company and Employee acknowledge that the covenants contained in this Section 4 are reasonable in light of the consideration provided by Company to Employee, including without limitation access to Confidential Information and Goodwill owned by Company, and in light of the relationships that Employee will have with Company’s clients.  However, Company and Employee agree that if a court should decline to enforce the provisions of Section 4 as written, that such provisions shall be reformed to restrict Employee’s competition with Company or its affiliates, and his or her solicitation of clients and employees, to the maximum extent as to time, geography and business scope which the court shall find enforceable; provided that the provisions of Paragraph 4 shall not be modified to be more restrictive to Employee than those contained herein.
    
- 3 -

5.ADDITIONAL NON-COMPETITION COVENANT.
Employee agrees that, at Company’s election, for any consecutive part or all of the initial six (6) months following termination of his or her employment at Company, whether by him or her or by Company and whether with or without cause (such part or all of such six-month period as the Company may elect being referred to as the “Post-Employment Term”), he or she will not (a) in any capacity provide the same or similar services as Employee provided to Company immediately preceding his or her termination to any person or entity in competition with the Company’s investment services; or (b) establish, join, participate in, acquire or maintain ownership in, or provide such same or similar services to, any United States based entity that offers services and/or products that compete with the Company’s investment services and/or products; provided, however, that this restriction shall not be construed to prevent Employee from owning or acquiring for investment purposes less than five (5) percent of the stock of any publicly traded company.  In the event Company elects to invoke the restrictions set forth in this paragraph as to Employee, Company shall continue Employee’s regular compensation during the Post-Employment Term at the same level being paid at termination and provide Employee a cash bonus equivalent to the most recent cash bonus paid to Employee prorated for the number of months in the six (6) month period Company elects to restrict Employee (but excluding all other bonuses, vesting of restricted stock, and/or other incentives) .  If Employee violates any term of this Agreement, all such pay continuation shall cease, and all prior payments made during the Post-Employment Term shall be immediately repaid by Employee to Company. 
6.AT-WILL EMPLOYMENT; REPORTING STRUCTURE; EFFECT OF TERMINATION.  
Employee’s employment is at will and may be terminated at any time by him or her or by Company, with or without cause.  Employee agrees that such termination shall not end his or her obligations under this Agreement. Subject to Section 7(c), any other contracts or agreements entered into between Employee and Company shall be separate from this Agreement.
7.MISCELLANEOUS.  
(a)THIS AGREEMENT SHALL BE SUBJECT TO AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS EXCEPT FOR CONFLICT OF LAWS PRINCIPLES, WITHOUT REGARD TO THE PLACE OF EXECUTION OR THE PLACE OF PERFORMANCE THEREOF.
(b)Failure to insist upon strict compliance with any provision in this Agreement shall not be deemed a waiver of such provision or any other provision in this Agreement.
(c)This Agreement may not be modified except by an agreement in writing executed by the parties to this Agreement.
(d)The invalidity or unenforceability of any provision hereof shall not affect the validity of enforceability of any other provision.  If, moreover, any one or more of the provisions contained in this Agreement shall, for any reason, be held to be excessively broad as to time, duration, geographical scope, activity, or subject, it shall be construed by limiting and reducing it so as to be enforceable to the extent compatible with the applicable law.
    
- 4 -

(e)This Agreement is not a contract of employment or promise of future employment. Employee’s employment is at will, as described in Section 6 above.

    
- 5 -

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.
WESTWOOD HOLDINGS GROUP, INC. 

By:      
Printed Name:  Brian O. Casey
Title:  Chief Executive Officer

By:  /s/ Fabian Gomez       
Printed Name:  Fabian Gomez
Title:  President

Employee’s Address:

    
    

BY EXECUTION OF THIS AGREEMENT, EMPLOYEE ACKNOWLEDGES RECEIPT OF A COPY OF THE AGREEMENT.
    
- 6 -Document

May 25, 2022
 
Fabian Gomez
 
						
	 	 

Dear Fabian:
 
We are pleased to inform you that the Westwood Holdings Group, Inc. (“Company”) Board of Directors (“Board”) has approved a special severance benefit program for you (“Executive”) in connection with your new role as President of Westwood Holdings Group, Inc. The purpose of this letter agreement is to set forth the terms and conditions of Executive’s severance benefits. 
 
The severance benefits outlined herein will become payable should Executive’s employment terminate under certain circumstances or following a substantial change in ownership or control of the Company.
 
1.Definitions
For purposes of this letter agreement (“Agreement”), the following definitions will be in effect: 
a."Accrued Obligations" shall mean, as of the Date of Termination, (i) Executive's full base salary through the Date of Termination, at the rate in effect at the time Notice of Termination is given (disregarding any reduction constituting Good Reason), to the extent not yet paid, (ii) the amount of any bonus, cash or incentive compensation earned (and so certified by the Compensation Committee, if applicable) and not forfeited hereunder by Executive as of the Date of Termination to the extent not yet paid, and (iii) any vacation pay, expense reimbursements and other cash entitlements accrued by Executive as of the Date of Termination but not yet paid. For purposes of determining an Accrued Obligation under this Agreement, no discretionary compensation shall be deemed earned or accrued until it is specifically approved by the Board or the Compensation Committee in accordance with the applicable plan, program or policy.
b.“Cause” has the meaning given to it in Section 2.1(g) of the Company’s Stock Incentive Plan as of the date hereof.
c.“Change in Control” has the meaning given to it in Section 17.1(b) of the Company’s Stock Incentive Plan as of the date hereof. 
d."Date of Termination" means the date Notice of Termination is given or any later date specified therein.
e.“Company’s Stock Incentive Plan” or the “Plan” shall mean Westwood Holdings Group, Inc.’s Eighth Amended and Restated Stock Incentive Plan, as amended from time to time.
f.“Good Reason” has the meaning given to it in Section 2.1(r) of the Company’s Stock Incentive Plan as of the date hereof.
200 Crescent Court, Suite 1200, Dallas, TX 75201   |   214.756.6900   |   westwoodgroup.com

g.“NCNS” means that certain Employee Confidentiality and Non-Compete Agreement entered into by Company and Executive on May25, 2022.
h."Notice of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon; (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated; and (iii) specifies the Date of Termination; provided such Notice of Termination may be conditional if coupled with a notice of the Board's consideration of "Cause" or Executive's intention to resign for "Good Reason," as the case may be, as provided in this Agreement.
2.Termination
a.Termination for Cause. The Company may terminate Executive's employment at any time for Cause. Cause shall be determined by the affirmative vote of at least seventy-five percent (75%) of the members of the Board (excluding Executive, if a Board member, and excluding any member of the Board involved in events leading to the Board's consideration of terminating Executive for Cause). Executive shall be given thirty (30) days' written notice of the Board meeting at which Cause shall be decided (which notice shall be deemed to be notice of the existence of Cause if Cause is then found to exist by the Board) and shall be given an opportunity, prior to the vote on Cause, to appear before the Board, with or without counsel at Executive's election, to present arguments on his behalf. The notice to Executive of the Board meeting shall include a description of the specific reasons for such consideration of Cause. During the notice period described herein, the Company shall not be prevented or delayed in its ability to enforce the restrictive covenants contained in the NCNS. For purposes of this Section 2(a), no act or failure to act on the part of Executive shall be considered willful if it is done, or omitted to be done, by him in good faith and with a reasonable belief that his action or omission was in the best interests of the Company.
b.Termination by Executive with Good Reason. Executive may terminate his employment at any time for Good Reason, if (i) an event or condition occurs which constitutes Good Reason; and (ii) Executive provides the Company with written notice that he intends to resign for Good Reason and (A) such written notice includes a specific description of the events or conditions Executive is relying upon which constitute Good Reason; (B) as of the thirtieth (30th) day following the date notice is given by Executive to the Company, such events or conditions have not been corrected in all material respects; and (C) Executive's resignation is effective within ninety (90) days of the date Executive first has actual knowledge of the occurrence of the first event or condition upon which Executive relies which constitutes Good Reason.
c.Termination by Executive without Good Reason. Executive may terminate his employment at any time without Good Reason, with at least six (6) months’ prior written notice to the Company.
d.Termination by the Company without Cause. The Company may terminate Executive's employment at any time without Cause, with at least thirty (30) days' prior written notice.
200 Crescent Court, Suite 1200, Dallas, TX 75201   |   214.756.6900   |   westwoodgroup.com

e.Termination due to Executive's Death.  Executive's employment will automatically terminate on the date of his death.
f.Notice of Termination. Any termination of Executive's employment, except due to Executive's death, shall be communicated by a Notice of Termination to the other party hereto.
3.Obligations of the Company Upon Termination or Change in Control. Executive's entitlements upon termination of employment or Change in Control are set forth below. Except to the extent otherwise provided in this Agreement, all benefits, including stock option grants, restricted shares and awards under the Company’s Stock Incentive Plan, shall be subject to the terms and conditions of the plan or arrangement under which such benefits accrue, are granted or are awarded. The payments and benefits contemplated by this Agreement are in addition to, and not in lieu of, any payments or benefits payable to Executive upon his termination of employment pursuant to any Company severance plan, policy or arrangement, except to the extent such payments or benefits duplicate any payments or benefits payable to Executive under this Agreement.
a.Death. If Executive's employment terminates by reason of his death, the following shall occur: (i) Executive's Accrued Obligations not yet paid within thirty (30) days following the Date of Termination shall become payable; and (ii) all unvested stock options, restricted shares and other equity compensation awards pursuant to the Company’s Stock Incentive Plan (assuming, in the case of any performance-based award, that the applicable performance goals were achieved at 100% of “target” performance) shall become vested.
b.By the Company for Cause or by Executive without Good Reason. If Executive's employment is terminated for Cause by the Company or if Executive terminates Executive's employment without Good Reason, then the Company shall pay Executive only the Accrued Obligations not yet paid within thirty (30) days following the Date of Termination. Any vested stock options shall be exercisable in accordance with the provisions of the applicable agreement or award, and all unvested stock options and all unvested restricted shares shall be forfeited.  
c.By the Company without Cause or by Executive for Good Reason. If Executive's employment is terminated by the Company without Cause or by Executive for Good Reason, then the Company shall pay Executive the Accrued Obligations not yet paid within thirty (30) days following the Date of Termination.  If, in addition, Executive (i) complies fully with all obligations under this Agreement and the NCNS, and (ii) executes and does not revoke a general release of claims (in a form reasonably acceptable to both Executive and Company) releasing and waiving any and all claims that Executive has or may have against Company and/or any of its current and former directors, officers, employees, agents, successors and assigns arising out of or related to his employment with Company (other than Company obligations set forth herein that specifically survive Executive’s termination of employment), then:
i.All unvested time-based restricted stock awards that are outstanding immediately prior to the Date of Termination will not be forfeited upon termination but will remain outstanding and continue to vest in accordance with the vesting schedules set forth in the relevant award agreements.
200 Crescent Court, Suite 1200, Dallas, TX 75201   |   214.756.6900   |   westwoodgroup.com

ii.All unvested performance-based restricted stock awards that are outstanding immediately prior to the Date of Termination will not be forfeited upon termination but will remain outstanding and will, as applicable, (A) continue to vest in accordance with the vesting schedules set forth in the relevant award agreements and (B) vest or be forfeited in accordance with the terms of the applicable award agreement based on actual performance for the applicable performance period.
To the extent necessary to give effect to the foregoing, this Agreement will serve as an amendment to the outstanding restricted stock awards previously granted to Executive.
d.Change in Control. Upon a Change in Control, each outstanding option or restricted stock award shall become 100% vested and exercisable as of the date ten (10) days prior to the date of the Change in Control pursuant to Section 17 of the Company’s Stock Incentive Plan, provided that the Executive’s employment has not terminated prior to such date.  
4.Amendment or Waiver. This Agreement may be amended, modified or changed only by a written instrument executed by Executive and the Company. No provision of this Agreement may be waived except by a writing executed and delivered by the party sought to be charged. Any such written waiver will be effective only with respect to the event or circumstance described therein and not with respect to any other event or circumstance unless such waiver expressly provides to the contrary.  
5.Representations.  Executive has reviewed with his own tax advisors the federal, state, local and foreign tax consequences of the payments and benefits contemplated by this Agreement.  Executive is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  Executive understands that he (and not the Company) is responsible for his own tax liability that may arise as a result of the payments and benefits payable under this Agreement.
6.Section 409A Matters.  
a.Notwithstanding any provision of this Agreement to the contrary, all provisions of this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the applicable Treasury regulations and administrative guidance issued thereunder (collectively, "Section 409A") or an exemption therefrom and shall be construed and administered in accordance with such intent. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of Executive's employment shall only be made if such termination of employment constitutes a "separation from service" under Section 409A.   
b.Notwithstanding any provision in this Agreement to the contrary, if any payment or benefit provided for herein would be subject to additional taxes and interest under Section 409A if Executive's receipt of such payment or benefit is not delayed until 
200 Crescent Court, Suite 1200, Dallas, TX 75201   |   214.756.6900   |   westwoodgroup.com

the earlier of (i) the date of Executive's death or (ii) the date that is six months after the Date of Termination (such date, the "Section 409A Payment Date"), then such payment or benefit shall not be provided to Executive (or Executive's estate, if applicable) until the Section 409A Payment Date.  Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement are exempt from, or compliant with, Section 409A and in no event shall any the Company or any of its affiliates be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.
In addition, the terms and conditions of your employment, as stated in this letter or as made known to you at any time during your employment, are subject to change at any time, with or without notice.  
 
Please indicate your acceptance of this Agreement below and return the original to me no later than May 31, 2022. Please keep a copy of this letter for your personal records.

Sincerely,
    

Brian O. Casey
Chief Executive Officer 

I accept the letter agreement (“Agreement”) as stated above.  I understand and acknowledge that this Agreement does not guarantee me employment for any period of time and that the employment relationship between the Company and me will be "at will," which means that either the Company or I may terminate the relationship at any time.  I also understand and acknowledge that, subject to the terms stated above, the Company may change the terms and conditions of my employment at any time.

Signature: 

/s/ Fabian Gomez_______________________     May 25, 2022                  _____________________________
Fabian Gomez        Date

Enclosures
cc: J. Gerron
200 Crescent Court, Suite 1200, Dallas, TX 75201   |   214.756.6900   |   westwoodgroup.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00345-of-00352.parquet"}]]