Document:

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of November 8, 2012 (the “Effective Date”), by and between HALCÓN RESOURCES CORPORATION, a Delaware corporation (the “Company”) and CHARLES E. CUSACK III (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the parties desire to enter into this Agreement pertaining to the employment of the Executive by the Company.

 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises herein contained, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

 

1.                                      Term of Employment.  Unless earlier terminated as provided in paragraph 10, the Company shall employ the Executive in the capacity set forth herein, commencing on the Effective Date and ending on December 31, 2013 (the “Initial Term”), provided, however, that the term shall be automatically extended for successive one-year periods (each such period an “Extension Term” and, collectively with the Initial Term, the “Term”) unless either party provides written notice to the other party of non-extension of the Term not less than 30 calendar days before the end of the Initial Term or, as applicable, the then-current Extension Term.  A timely notice of non-extension of the Term by the Company shall be considered a termination by the Company without Cause for purposes of paragraph 10.  A timely notice of non-extension of the Term by the Executive shall be considered a termination by the Executive without Good Reason for purposes of paragraph 10.

 

2.                                      Duties of the Executive.  During the Term, the Executive shall serve as Executive Vice President, Exploration of the Company and shall devote his full time, attention, and effort to performing the customary duties and responsibilities of such office, including those duties and responsibilities assigned to him by the Chief Executive Officer of the Company from time to time.  The Executive agrees to use his best efforts to perform all duties and responsibilities that are required to fully and faithfully execute the offices and positions held by him.  The Executive shall be entitled to devote a reasonable amount of time to civic and community affairs and the management of his personal investments so long as these other activities do not, in the judgment of the Board of Directors of the Company (the “Board”) or the Chief Executive Officer of the Company, inhibit or prohibit the performance of the Executive’s duties hereunder or violate any provisions of this Agreement or policies of the Company, including, but not limited to those provisions relating to non-competition and non-disclosure. Unless otherwise agreed to by the Company and the Executive, the Executive shall be based at the Company’s principal executive offices located in the metropolitan area of Houston, Texas.

 

3.                                      Compensation.  As compensation for the services to be rendered by the Executive for and on behalf of the Company hereunder, the Executive shall be entitled to the following (collectively referred to hereinafter as the “Total Compensation”):

 

(a)                                 Base Salary. A base salary at an annual rate of Three Hundred Twenty-Five Thousand Dollars ($325,000.00) (as adjusted in accordance with the provisions of this Agreement, the “Base Salary”) will be paid to the Executive at such intervals as may be established by the Company for payment of its employees under its normal payroll practices.  Base Salary payments shall be subject to all applicable federal and state withholding, payroll and other taxes, and all applicable deductions for benefits as may be required by law or the Executive’s authorization. The Base Salary shall be reviewed periodically by the Compensation

 

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Committee of the Board (the “Compensation Committee”) and may be increased from time to time as the Compensation Committee may deem appropriate.

 

(b)                                 Bonus.  In addition to the Base Salary, the Executive shall be eligible to receive one or more cash bonuses to be determined by the Compensation Committee in its sole discretion based on performance criteria to be adopted by the Compensation Committee.  Any such bonus shall be paid to the Executive no later than the 15th day of the third calendar month following the fiscal year (or other performance period) with respect to which the bonus relates.

 

4.                                      Other Benefits.  In addition to the Total Compensation to be paid to the Executive as provided for herein, the Executive shall also be entitled to the following benefits:

 

(a)                                 Equity Compensation.  The Executive may, as determined by the Compensation Committee in its discretion, periodically receive grants of stock options, restricted stock or other equity-related awards from the Company’s various equity compensation plans, subject to the terms and conditions thereof.

 

(b)                                 Business Expenses.  The Company shall reimburse the Executive for all reasonable business expenses incurred by the Executive in the performance of his duties, provided that the Executive provides adequate documentation required by law and by the policies and procedures of the Company, as adopted and amended from time to time, provided that in no event shall the Executive submit any required documentation later than 60 days after the end of the calendar year in which such expense was incurred.  Any such reimbursement shall be made as soon as reasonably practicable but in no event later than the 15th day of the third month following the calendar year in which the applicable expense was incurred.  The Executive acknowledges and agrees that all such expenses will be subject to the oversight of the Audit Committee of the Board.

 

(c)                                  Other Benefits.  Except as otherwise specifically provided to the contrary in this Agreement, the Executive shall be provided with retirement, welfare and other benefits to the same extent and on the same terms as those benefits are provided by the Company from time to time to the Company’s other senior executive officers, including, but not limited to, vacation, participation in various health, retirement, life insurance, disability insurance or other employee benefit plans or programs, subject to regular eligibility requirements with respect to each such benefit plans or programs, as well as other benefits or perquisites as may be approved by the Board; provided, however, that the Company shall not be required to provide a benefit under this subparagraph (c) if such benefit would duplicate (or otherwise be of the same type as) a benefit specifically required to be provided under another provision of this Agreement.  In addition, the Executive shall be provided with the benefits set forth on Exhibit A, if any.

 

5.                                      Confidential Information.  The Executive acknowledges that, during the course of his employment, he will have access to and will receive information which constitutes trade secrets, is of a confidential nature, is of great value to the Company and/or is a foundation on which the business of the Company is predicated.  With respect to all such Confidential Information (as defined hereafter), the Executive agrees, during the Term and thereafter, not to disclose such Confidential Information to any person other than an employee, counsel or advisor of the Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of his duties hereunder nor to use such Confidential Information for any purpose other than the performance of his duties hereunder.  For purposes of this Agreement, “Confidential Information” shall include all data or material (regardless of form) with respect to the Company or any of its assets, prospects, business activities, officers, directors, employees, borrowers, or clients which is: (a) a trade secret, as defined by

 

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the Uniform Trade Secrets Act; (b) provided, disclosed, or delivered to the Executive by the Company, any officer, director, employee, agent, attorney, accountant, consultant, or other person or entity employed by the Company in any capacity, any client, borrower, advisor, or business associate of the Company, or any public authority having jurisdiction over the Company or any business activity conducted by the Company; or (c) produced, developed, obtained or prepared by or on behalf of the Executive or the Company (whether or not such information was developed in the performance of this Agreement). Notwithstanding the foregoing, the term “Confidential Information” shall not include any information, data or material which, at the time of disclosure or use, was generally available to the public other than by a breach of this Agreement, was available to the party to whom disclosed on a non-confidential basis by disclosure or access provided by the Company or a third party without breaching any obligations of the Company or such third party, or was otherwise developed or obtained legally and independently by the person to whom disclosed without a breach of this Agreement.  This paragraph shall not preclude the Executive from disclosing Confidential Information if compelled to do so by law or valid legal process, provided that if the Executive believes the Executive is so compelled by law or valid legal process, the Executive will notify the Company in writing sufficiently in advance of any such disclosure to allow the Company the opportunity to defend, limit, or otherwise protect its interests against such disclosure unless such notice is prohibited by law.  The rights and obligations of the parties under this paragraph shall survive the expiration or termination of this Agreement for any reason.

 

6.                                      Proprietary Matters.  The Executive expressly agrees that any and all improvements, inventions, discoveries, processes, or know-how that are generated or conceived by the Executive during the Term, whether conceived during the Executive’s regular working hours or otherwise, will be the sole and exclusive property of the Company.  Whenever requested by the Company (either during the Term or thereafter), the Executive will assign or execute any and all applications, assignments and/or other documents, and do all things which the Company reasonably deems necessary or appropriate, in order to permit the Company to: (a) assign and convey, or otherwise make available to the Company, the sole and exclusive right, title, and interest in and to said improvements, inventions, discoveries, processes or know-how; or (b) apply for, obtain, maintain, enforce and defend patents, copyrights, trade names, or trademarks of the United States or of foreign countries for said improvements, inventions, discoveries, processes, or know-how.  However, the improvements, inventions, discoveries, processes, or know-how generated or conceived by the Executive and referred to in this paragraph (except those which may be included in the patents, copyrights, or registered trade names or trademarks of the Company) will not be exclusive property of the Company at any time after having been disclosed or revealed or have otherwise become available to the public or to a third party on a non-confidential basis other than by a breach of this Agreement, or after they have been independently developed or discussed without a breach of this Agreement by a third party who has no obligation to the Company.  The rights and obligations of the parties under this paragraph shall survive the expiration or termination of this Agreement for any reason.

 

7.                                      Non-Competition.  As part of the consideration for the compensation and benefits to be paid to the Executive hereunder, and in order to protect the Confidential Information, business goodwill and business opportunities of the Company, the Executive agrees that, during the Term, he will not, directly or indirectly, engage in or become interested financially in, as a principal, employee, partner, contractor, shareholder, agent, manager, owner, advisor, lender, guarantor, officer, or director, any business (other than the Company) that is engaged in leasing, acquiring, exploring, producing, gathering, or marketing hydrocarbons and/or related products; provided, however, that the Executive shall be entitled to continue to invest in those entities as set forth on Exhibit B, if any, and to invest in stocks, bonds, or other securities in any such business (without participating in such business) if: (a) such stocks, bonds, or other securities are listed on any United States securities exchange or are publicly traded in an over the counter market; and such investment does not exceed, in the case of any capital stock of any one issuer, five percent of the issued and outstanding capital stock, or in the case of bonds or other securities, five percent of the aggregate principal amount thereof issued and outstanding; or (b) such investment is

 

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completely passive and no control or influence over the management or policies of such business is exercised.

 

8.                                      Non-Solicitation.  The Executive agrees that he will not, at any time during the Term, or at any time within six months after the termination of his employment, for his own account or benefit or for the account or benefit of any other person, firm or entity, directly or indirectly, solicit for employment any employee of the Company (or any person who was an employee of the Company in the 90-day period before such solicitation) or induce any employee of the Company (or any person who was an employee of the Company in the 90-day period before such inducement) to terminate his employment with the Company.  Notwithstanding the above, the restrictions relating to persons employed in the 90-day period referenced in the parentheticals in the immediately preceding sentence shall not apply to a person who was a party to an employment agreement with the Company and who terminates his employment for Good Reason or is terminated by the Company without Cause.  The rights and obligations of the parties under this paragraph shall survive the expiration or termination of this Agreement for any reason.

 

9.                                      Injunctive Relief.  The Executive acknowledges and agrees that any violation of paragraphs 5-8 of this Agreement would result in irreparable harm to the Company and, therefore, agrees that, in the event of an actual, suspected, or threatened breach of paragraphs 5-8 of this Agreement, the Company shall be entitled to an injunction restraining the Executive from committing or continuing such actual, suspected or threatened breach. The parties acknowledge and agree that the right to such injunctive relief shall be cumulative and shall not be in lieu of, or be construed of a waiver of the Company’s right to pursue, any other remedies to which it may be entitled in law or in equity.  The parties agree that for purposes of paragraph 5-8 of this Agreement, the term “Company” shall include the Company and its Affiliates.

 

10.                               Termination of Employment.  The Executive’s employment by the Company and this Agreement may be terminated before the expiration of the Term, without breach of this Agreement, in accordance with the provisions set forth below:

 

(a)                                 Death.  If the Executive dies during the Term and while in the employ of the Company, his employment and this Agreement shall automatically terminate and the Company shall be relieved of all of its obligations to the Executive or his estate under this Agreement, except that the Company shall pay to the Executive’s estate any unpaid portion of the Executive’s Base Salary and benefits accrued through the date of death, and at the discretion of the Compensation Committee, a bonus, if any.  These amounts, if any, shall be paid at the time and in the manner required by applicable law but in no event later than 30 days after the date of the Executive’s death or, with respect to benefits accrued, the date provided for under the terms of the employee benefit plan under which such benefits were accrued.  In addition, all stock options and other incentive awards held by the Executive will become fully vested and immediately exercisable and all restrictions on any restricted stock held by the Executive will be removed.

 

(b)                                 Inability to Perform.  The Company may terminate the Executive’s employment and this Agreement in the event of the Executive’s Inability to Perform.  For this purpose, “Inability to Perform” means and shall be deemed to have occurred if the Executive has been determined under the Company’s or an Affiliates’ long-term disability plan to be eligible for long-term disability benefits or, in the event the Company or an Affiliate does not maintain such a plan or in the absence of the Executive’s participation in or application for benefits under such a plan, such term shall mean the inability of the Executive, despite any reasonable accommodation required by law, due to bodily injury or disease or any other physical or mental incapacity, to perform the services required hereunder for a period of 120 consecutive days.  In the event of a termination pursuant to this paragraph 10(b), the Company shall be relieved of all of its

 

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obligations under this Agreement, except that the Company shall pay to the Executive, or his estate in the event of his subsequent death, any unpaid portion of the Executive’s Base Salary and benefits accrued through the date of such termination and, at the discretion of the Compensation Committee, a bonus, if any.  These amounts, if any, shall be paid at the time and in the manner required by applicable law but in no event later than 30 days after the date of termination or, with respect to benefits accrued, the date provided for under the terms of the employee benefit plan under which such benefits were accrued.  In addition, upon any such termination, all stock options and other incentive awards held by the Executive will become fully vested and immediately exercisable and all restrictions on any restricted stock held by the Executive will be removed.

 

(c)                                  Termination by the Company for Cause.  The Company may terminate the Executive’s employment and this Agreement for Cause (defined hereafter), but only after: (i) giving the Executive written notice of the failure or conduct which the Company believes to constitute Cause; and (ii) with respect to elements (1) through (5) below, providing the Executive a reasonable opportunity, and in no event more than 30 days, to cure such failure or conduct, unless the Board determines in its good faith judgment that such failure or conduct is not reasonably capable of being cured.  In the event the Executive does not cure the alleged failure or conduct within the time frame provided for such cure by the Company, the Company shall send him written notice specifying the effective date of termination.  The failure by the Company to set forth in the notice referenced in this paragraph 10(c) any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Company to assert, or preclude the Company from asserting, such fact or circumstance in enforcing its rights hereunder.  For purposes of this Agreement, “Cause” shall mean:

 

(1)                                 The willful failure by the Executive to perform his duties in any material respect as required hereunder (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness or disability) or the commission by the Executive of an act of willful misconduct in any material respect with respect to the Company; or

 

(2)                                 The engaging by the Executive in conduct which is demonstrably and materially injurious to the Company and/or its Affiliates; or

 

(3)                                 The willful engaging, or failure to engage, by the Executive in conduct which is in material violation of any term of this Agreement or the terms of any of the Company’s written policies and procedures; or

 

(4)                                 The Executive’ breach of duty (other than inadvertent acts or omissions) involving fraud, dishonesty, disloyalty, or a conflict of interest; or

 

(5)                                 The Executive’s failure to cooperate with any investigation or inquiry authorized by the Company or an Affiliate or conducted by a governmental authority related to the Company’s or an Affiliate’s business or the Executive’s conduct; or

 

(6)                                 The Executive’s conviction of, or entry of a plea agreement or consent decree or similar arrangement with respect to, any felony, any crime involving deceit, fraud, perjury or embezzlement, or any violation of federal or state securities laws.

 

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For purposes of this paragraph 10(c), no act, or failure to act, shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company.

 

In the event of a termination pursuant to this paragraph 10(c), the Executive shall be entitled to no severance or other termination benefits and the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay to the Executive any unpaid portion of the Executive’s Base Salary and benefits accrued through the date of such termination.  These amounts, if any, shall be paid at the time and in the manner required by applicable law but in no event later than 30 days after the date of termination or, with respect to benefits accrued, the date provided for under the terms of the employee benefit plan under which such benefits were accrued.

 

The Company may suspend the Executive with pay pending an investigation authorized by the Company or an affiliate or a governmental authority or a determination whether the Executive has engaged in acts or omissions constituting Cause, and such paid suspension shall not constitute Good Reason or a termination of the Executive’s employment.

 

(d)                                 Termination by the Company Without Cause.  The Company may also terminate the Executive’s employment and this Agreement without Cause by providing at least 30 days’ written notice of such termination to the Executive.  A termination of the Executive’s employment and this Agreement by the Company without Cause shall entitle the Executive to payments and other benefits as specified in paragraph 10(g) or 10(h), as applicable.

 

(e)                                  Termination by the Executive for Good Reason.  The Executive shall be entitled to terminate his employment and this Agreement at any time for Good Reason (defined hereafter).  A termination of employment and this Agreement by the Executive for Good Reason shall entitle the Executive to payments and other benefits as specified in paragraph 10(g) or 10(h), as applicable.  For purposes of this Agreement, “Good Reason” shall mean, subject to the notice and cure provisions below, any of the following actions if taken without the Executive’s prior consent: (i) a material reduction in the Executive’s Base Salary; (ii) a material reduction in the Executive’s authority, responsibilities or duties; (iii) a material reduction in the authority, responsibilities or duties of the supervisor to whom the Executive is required to report; (iv) a material reduction in the budget over which the Executive retains authority; (v) a permanent relocation of the Executive’s principal place of employment to any location outside of a fifty mile radius of the location from which the Executive served the Company immediately prior to the relocation, provided such relocation is a material change in the geographic location at which the Executive must provide services for purposes of Code Section 409A and the regulations thereunder; or (vi) any other action or inaction that constitutes a material breach by the Company of this Agreement.  To exercise the option to terminate employment for Good Reason, the Executive must provide written notice to the Company of the Executive’s belief that Good Reason exists within 60 days of the initial existence of the Good Reason condition, and that notice shall describe in reasonable detail the condition(s) believed to constitute Good Reason.  The Company then shall have 30 days to remedy the Good Reason condition(s).  If not remedied within that 30-day period or if the Company notifies the Executive that it does not intend to cure such condition(s) before the end of that 30-day period, the Executive may submit a notice of termination to the Company; provided, however, that the notice of termination invoking the Executive’s option to terminate employment for Good Reason must be given no later than 100 days after the date the Good Reason condition first arose; otherwise, the Executive is deemed to have accepted the condition(s), or the Company’s correction of such condition(s), that may have given rise to the existence of Good Reason.

 

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(f)                                   Termination by the Executive Without Good Reason.  The Executive may also terminate his employment and this Agreement without Good Reason by providing at least 30 days’ written notice of such termination to the Company.  In the event of a termination pursuant to this paragraph 10(f), the Executive shall be entitled to no severance or other termination benefits and the Company shall be relieved of all of its obligations under this Agreement, except that the Company shall pay to the Executive any unpaid portion of the Executive’s Base Salary and benefits accrued through the date of such termination.  These amounts, if any, shall be paid at the time and in the manner required by applicable law but in no event later than 30 days after the date of termination or, with respect to benefits accrued, the date provided for under the terms of the employee benefit plan under which such benefits were accrued.  At the Company’s option, the Company may accelerate the date of the Executive’s termination of employment by paying to the Executive the Base Salary and value of the benefits that the Executive would have received during the period by which the date of termination is so accelerated and such acceleration shall not change the characterization of the termination from one by the Executive without Good Reason.

 

(g)                                  Termination by the Executive for Good Reason or by the Company without Cause During Change in Control Period.  In the event that (i) the Executive terminates his employment and this Agreement for Good Reason during a “Change in Control Period,” which is defined as the period beginning on the date of the occurrence of a Change in Control and ending on the second anniversary of such date or (ii) the Company terminates the Executive’s employment and this Agreement without Cause during a Change in Control Period, then, subject to paragraph 22, the following shall occur:

 

(1)                                 The Company shall pay the Executive any unpaid portion of the Executive’s Base Salary and benefits accrued through the date of termination.  These amounts, if any, shall be paid at the time and in the manner required by applicable law but in no event later than 30 days after the date of termination or, with respect to benefits accrued, the date provided for under the terms of the employee benefit plan under which such benefits were accrued.

 

(2)                                 The Company shall pay the Executive an amount equal to the greater of (i) a pro rata amount of the Executive’s target bonus for the year in which the date of termination occurs or (ii) a bonus for such year as may be determined by the Compensation Committee in its sole discretion.  This amount shall be paid in the form of a lump sum as soon as practicable after the date of termination, but no later than March 15 of the year immediately following the year in which the date of termination occurs.

 

(3)                                 The Company shall pay the Executive a lump sum severance payment equal to the sum of the following: (i) an amount equal to 2.5 multiplied by the greater of (A) the Executive’s Base Salary in effect as of the date of termination (or, if greater, before any reduction during the Change in Control Period) or (B) the Executive’s Base Salary in effect immediately before the Change in Control, plus (ii) an amount equal to 2.5 multiplied by the greater of (A) the bonus payable to the Executive for the year in which the date of termination occurs (provided that if the Executive’s bonus for such year has not been determined as of the date of termination, then the amount of the bonus shall be determined as if the Executive earned 100% of the target bonus for such year, to the extent a target bonus exists), (B) the bonus paid to the Executive for the year immediately preceding the year in which the date of termination occurs, or (C) the bonus paid to the Executive for the year immediately preceding the year in which the Change in Control

 

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occurs.  This amount shall be paid within five business days after the Release (defined in paragraph 22) becomes effective and enforceable but in no event later than 60 days after the date of termination.

 

(4)                                 Should the Executive timely elect to continue coverage under a group health insurance plan sponsored by the Company or one of its Affiliates and timely make the premium payments, reimburse the Executive on a monthly basis for the cost of continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 or other applicable law (“COBRA”) for the Executive and any eligible dependents until the earlier of (A) the date the Executive is no longer entitled to continuation coverage under COBRA or (B) for 18 months after the date of termination.  The first reimbursement shall not be paid before five business days after the Release (defined in paragraph 22) becomes effective and enforceable.

 

(5)                                 All stock options and other incentive awards held by the Executive will become fully vested and immediately exercisable and all restrictions on any restricted stock held by the Executive will be removed.

 

In addition to the items referenced in clauses (1)-(5) above, if a bonus for the Executive for the year immediately preceding the year in which the date of termination occurs has been determined but not paid as of the date of termination, then the Executive shall be paid the bonus for such year in the amount so determined.  This amount shall be paid in the form of a lump sum as soon as practicable after the date of termination, but no later than March 15 of the year immediately following the year in which the date of termination occurs.  If a bonus for the Executive for the year immediately preceding the year in which the date of termination occurs has not been determined as of the date of termination, then the Executive shall be paid a bonus for such year in an amount equal to the greater of (i) 100% of the Executive’s target bonus for such year, (ii) 100% of the Executive’s target bonus for the year in which the date of termination occurs, (iii) the bonus paid to the Executive for the year in which the Change in Control occurs, or (iv) the bonus paid to the Executive for the year immediately preceding the year in which the Change in Control occurs.  This amount shall be paid in the form of a lump sum as soon as practicable after the date of termination, but no later than March 15 of the year immediately following the year in which the date of termination occurs.

 

(h)                                 Termination by the Executive for Good Reason or by the Company without Cause Outside a Change in Control Period.  In the event that (i) the Executive terminates his employment and this Agreement for Good Reason or (ii) the Company terminates the Executive’s employment and this Agreement without Cause, and in either instance, such termination does not occur during a Change in Control Period, then, subject to paragraph 22, the following shall occur:

 

(1)                                 The Company shall pay the Executive any unpaid portion of the Executive’s Base Salary and benefits accrued through the date of termination, and at the discretion of the Compensation Committee, a bonus, if any.  These amounts, if any, shall be paid at the time and in the manner required by applicable law but in no event later than 30 days after the date of termination or, with respect to benefits accrued, the date provided for under the terms of the employee benefit plan under which such benefits were accrued.

 

(2)                                 The Company shall pay the Executive an amount equal to the greater of (i) a pro rata amount of the Executive’s target bonus for the year in which the date of termination occurs or (ii) such bonus for such year as may be determined by the

 

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Compensation Committee in its sole discretion. This amount shall be paid in the form of a lump sum as soon as practicable after the date of termination, but no later than March 15 of the year immediately following the year in which the date of termination occurs.

 

(3)                                 The Company shall pay the Executive a lump sum severance payment equal to the sum of the following: (i) an amount equal to the Executive’s Base Salary in effect as of the date of termination (or, if greater, before any reduction in the year immediately preceding the date of termination) plus (ii) an amount equal to the greater of (A) the bonus payable to the Executive for the year in which the date of termination occurs (provided that if the Executive’s bonus for such year has not been determined as of the date of termination, then the amount of the bonus shall be determined as if the Executive earned 100% of the target bonus for such year, to the extent a target bonus exists) or (B) the bonus paid to the Executive for the year immediately preceding the year in which the date of termination occurs.  This amount shall be paid within five business days after the Release (defined in paragraph 22) becomes effective and enforceable but in no event later than 60 days after the date of termination.

 

(4)                                 Should the Executive timely elect to continue coverage under a group health insurance plan sponsored by the Company or one of its Affiliates and timely make the premium payments, reimburse the Executive on a monthly basis for the cost of continued coverage under for the Executive and any eligible dependents until the earlier of (A) the date the Executive is no longer entitled to continuation coverage under COBRA or (B) for 12 months after the date of termination.  The first reimbursement shall not be paid before five business days after the Release (defined in paragraph 22) becomes effective and enforceable.

 

(5)                                 All stock options and other incentive awards held by the Executive will become fully vested and immediately exercisable and all restrictions on any restricted stock held by the Executive will be removed.

 

(i)                                     Return of Confidential Information and Company Property.  Upon termination of the Executive’s employment for any reason, the Executive shall immediately return all Confidential Information and other Company property to the Company.

 

(j)                                    Change in Control.  For purposes of this Agreement, “Change in Control” shall mean the first to occur of any of the following events:

 

(1)                                 Any “person” or “group (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 35% of the total voting power of the outstanding voting stock of the Company; for purposes of this subparagraph (1) the following acquisitions will not constitute a Change in Control: any acquisition by the Company or any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company;

 

(2)                                 The Company is merged with or into or consolidated with another Person and, immediately after giving effect to the merger or consolidation, one or both of the following occurs: (a) less than 50% of the total voting power of the outstanding voting stock of the surviving or resulting Person is then “beneficially owned” (within the meaning of Rule 13d-3 under the Exchange Act) in the aggregate by the stockholders of

 

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the Company immediately prior to such merger or consolidation, and (b) the individuals who were members of the Board immediately prior to the execution of the agreement providing for the merger or consolidation do not constitute at least a majority of the members of the board of directors of the surviving or resulting Person;

 

(3)                                 The Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of the Company assets (either in one transaction or a series of related transactions) (other than transfers to an entity or entities controlled by the Company);

 

(4)                                 Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose (1) election, (2) appointment or (3) nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for purposes of this definition, any such individual whose initial assumption of office occurs as a result of an actual or publicly threatened election contest with respect to the election or removal of directors or other actual or publicly threatened solicitation of proxies or consents by or on behalf of a person or group other than the Board; or

 

(5)                                 a complete liquidation or dissolution of the Company.

 

11.                               Code Section 409A.  The severance pay and severance benefits provided under this Agreement are intended to be exempt from Internal Revenue Code Section 409A (“Code Section 409A”) and any ambiguous provision will be construed in a manner that is compliant with or exempt from the application of Code Section 409A.  In particular, the severance pay and benefits are intended to constitute a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b)(4), a payment or benefit described in paragraphs (b)(9)(iv) and (v) of Treasury Regulation Section 1.409A-1, and/or severance pay due to involuntary separation from service under Treasury Regulation Section 1.409A-1(b)(9)(iii). If a provision of this Agreement would result in the imposition of an applicable tax under Code Section 409A, the parties agree that such provision shall be reformed to the extent permissible under Code Section 409A to avoid imposition of the applicable tax, with such reformation effected in a manner that has the most favorable tax result to the Executive. Notwithstanding any provision in this Agreement to the contrary, if (a) the Executive is a “specified employee,” as such term is defined in Code Section 409A and the regulations thereunder and (b) any payment due under this Agreement is subject to Code Section 409A and is required to be delayed under Code Section 409A because the Executive is a specified employee, that payment shall be payable on the earlier of (i) the first business day that is six months after the Executive’s Separation from Service, (ii) the date of the Executive’s death, or (iii) the date that otherwise complies with the requirements of Code Section 409A. This paragraph shall be applied by accumulating all payments that otherwise would have been paid within six months of the Executive’s Separation from Service and paying such accumulated amounts on the earliest business day which complies with the requirements of Code Section 409A. For purposes of determining the identity of specified employees, the Company may establish procedures as it deems appropriate in accordance with Code Section 409A. For purposes of Code Section 409A, each payment amount or benefit due under this Agreement will be considered a separate payment and the Executive’s entitlement to a series of payments or benefits under this Agreement is to be treated as an entitlement to a series of separate payments.  With respect to any reimbursements that are nonqualified deferred compensation subject to Code Section 409A, (i) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (ii) the reimbursement must be made on or before

 

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the last day of the calendar year following the calendar year in which the expense was incurred and (iii) the right to reimbursement shall not be subject to liquidation or exchange for any other benefit. For purposes of this Agreement, “Separation from Service” means separation from service (within the meaning of Code Section 409A and the regulations and other guidance promulgated thereunder) with the group of employers that includes the Company and each of its “409A Affiliates.” For this purpose, “409A Affiliate” means any incorporated or unincorporated trade or business or other entity or person, other than the Company, that along with the Company is considered a single employer under Internal Revenue Code Section 414(b) or Internal Revenue Code Section 414(c), but (i) in applying Internal Revenue Code Section 1563(a)(1), (2), and (3) for the purposes of determining a controlled group of corporations under Internal Revenue Code Section 414(b), the phrase “at least 50 percent” shall be used instead of the phrase “at least 80 percent” in each place the phrase “at least 80 percent” appears in Internal Revenue Code Section 1563(a)(1), (2), and (3), and (ii) in applying Treasury Regulation Section 1.414(c)-2 for the purposes of determining trades or businesses (whether or not incorporated) that are under common control for the purposes of Internal Revenue Code Section 414(c), the phrase “at least 50 percent” shall be used instead of the phrase “at least 80 percent” in each place the phrase “at least 80 percent” appears in Treasury Regulation Section 1.414(c)-2.

 

12.                               Assistance with Claims.  The Executive agrees that, for the period beginning on the Effective Date, and continuing for a reasonable period after the termination or expiration of this Agreement for any reason, the Executive will assist the Company in the defense of any claims that may be made against the Company and will assist the Company in the prosecution of any claims that may be made by the Company, to the extent such claims may relate to services performed by the Executive for the Company. The Executive agrees to promptly inform the Company if the Executive becomes aware of any lawsuits or potential claims that may be filed against the Company.  For all assistance occurring after termination of the Executive’s employment by the Company, the Company agrees to provide reasonable compensation to the Executive for such assistance.  The Executive also agrees to promptly inform the Company if asked to assist in any investigation of the Company (or its actions) that may relate to services performed by the Executive for the Company, regardless of whether a lawsuit has been filed against the Company with respect to such investigation.

 

13.                               Successors and Assigns.  The Company will require any successor (whether direct or indirect) to all or substantially all of the business and assets of the Company (“Successor”) or any corporation which becomes the ultimate parent corporation of the Company or any such Successor to expressly assume and agree in writing satisfactory to the Executive to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place; provided, however, that express assumption shall not be required where this Agreement is assumed by operation of law. After the death or disability of the Executive, all his rights hereunder shall inure to the benefit of, and be enforceable by, his personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees.  Except as otherwise provided herein, the Executive’s rights and obligations may not be assigned without the prior written consent of the Company.

 

14.                               Governing Law; Venue; Jury-Trial Waiver.  The Company (including for this purpose each of the Company’s Affiliates) and the Executive (i) agree that this Agreement is governed by and shall be construed and enforced in accordance with Texas law, excluding its choice-of-law principles, except where federal law may preempt the application of state law; (ii) submit and consent to the exclusive jurisdiction, including removal jurisdiction, of the state and federal courts located in Harris County, Texas (or the county where the Company’s principal executive offices are located if different) for any action or proceeding relating to this Agreement or the Executive’s employment; (iii) waive any objection to such venue; (iv) agree that any judgment in any such action or proceeding may be enforced in other jurisdictions; and (v) irrevocably waive the right to trial by jury and agree not to ask for a jury in any such proceeding.

 

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15.                               Notice.  All notices required or permitted under this Agreement shall be in writing and shall be deemed effective: (i) upon delivery, if delivered in person; (ii) upon delivery to Federal Express or other similar courier service, marked for next day delivery, addressed as set forth below; (iii) upon deposit in United States Mail if sent by registered or certified mail, return receipt requested, addressed as set forth below; or (iv) upon being sent by facsimile transmission, provided an original is mailed the same day by registered or certified mail, return receipt requested:

 

	
If   to the Company:
    	
 
    	
Halcón   Resources Corporation
    
	
 
    	
 
    	
1000   Louisiana, Suite 6700
    
	
 
    	
 
    	
Houston,   Texas 77002
    
	
 
    	
 
    	
Attn:   Vice President, Human Resources
    
	
 
    	
 
    	
Fax   No. (832) 538-0220
    
	
 
    	
 
    	
 
    
	
If   to the Executive:
    	
 
    	
Charles   E. Cusack III
    
	
 
    	
 
    	
2342   Underwood Street
    
	
 
    	
 
    	
Houston,   TX 77030
    
	
 
    	
 
    	
 
    

16.                               Severability.  The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any one or more of the provisions of this Agreement shall not affect the validity and enforceability of the other provisions.

 

17.                               Dodd-Frank Act and Other Applicable Law Requirements.  The Executive agrees (i) to abide by any compensation recovery, recoupment, anti-hedging or other policy applicable to executives of the Company and its Affiliates, as may be in effect from time to time, as approved by the Board or a duly authorized committee thereof or as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) or other applicable law, and (ii) that the terms and conditions of this Agreement shall be deemed automatically amended as may be necessary from time to time to ensure compliance by the Executive and this Agreement with such policies, the Dodd-Frank Act, or other applicable law.

 

18.                               Entire Agreement.  This Agreement contains the entire agreement and understanding by and between the Company and the Executive with respect to the employment of the Executive, and no representations, promises, agreements, or understandings, written or oral, not contained herein shall be of any force or effect.  No waiver of any provision of this Agreement shall be valid unless it is in writing and signed by the party against whom the waiver is sought to be enforced.  No valid waiver of any provision of this Agreement at any time shall be deemed a waiver of any other provision of this Agreement at such time or any other time.

 

19.                               Modification.  No amendment, alteration or modification to any of the provisions of this Agreement shall be valid unless made in writing and signed by both parties.  Notwithstanding the previous sentence, the Company may amend or modify this Agreement in its sole discretion at any time without the further consent of the Executive in any manner necessary to comply with applicable law and regulations, including without limitation the Dodd-Frank Act and the regulations thereunder, or the listing or other requirements of any stock exchange upon which the Company or an Affiliate is listed.

 

20.                               Paragraph Headings.  The paragraph headings have been inserted for convenience only and are not to be considered when construing the provisions of this Agreement.

 

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21.                               Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

 

22.                               Release of Claims.  The Executive shall not be entitled to receive the severance pay and benefits under paragraph 10(g)(3) and (4) or 10(h)(3) and (4), as applicable, unless (a) the Executive executes and returns to the Company a Release (as defined below) on or before the 50th day following the date of termination or such shorter time as may be prescribed in the Release, (b) such Release shall not have been timely revoked by the Executive and (c) the date of termination constitutes a Separation from Service, and provided further, however, that if the Executive violates his continuing obligations under paragraph 5, 6, 7 or 8, the Executive shall not be entitled to receive such severance pay or benefits and the Executive shall immediately repay to the Company upon written demand any severance pay or benefits that already have been paid to the Executive.  For purposes of this Agreement, “Release” means a waiver and release of claims by the Executive in the form prescribed by the Company, which form may include an agreement by the Executive not to disparage the Company, its Affiliates, and other related persons or entities, but which form shall not include a release and waiver of claims for (i) indemnification or for coverage under officer and director liability policies, if applicable, (ii) claims with respect to the reimbursement of business expenses or with respect to benefits which are in each case to continue in effect after termination or expiration of this Agreement in accordance with the terms of this Agreement, (iii) claims he may have as a holder of options to acquire equity securities of the Company (which shall be governed by the documents by which the Executive was granted such options) and (iv) claims he may have as a stockholder of the Company.

 

23.                               Definition of “Affiliate”.  For purposes of this Agreement, “Affiliate” means the Company and any other entity that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company.

 

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IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement on the day and year first above written.

 

	
“COMPANY”
    	
 
    	
“EXECUTIVE”
    
	
HALCÓN RESOURCES CORPORATION
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Stephen P. Smiley
    	
 
    	
/s/   Charles E. Cusack III
    
	
 
    	
Stephen   P. Smiley
    	
 
    	
Charles   E. Cusack III
    
	
 
    	
Chairman   of the Compensation Committee
    	
 
    	
 
    

 

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EXHIBIT A

 

N/AExhibit 10.1

 

SERVICES AGREEMENT

 

This Services Agreement (“Agreement”) sets forth the terms and conditions under which Norton Creative LLC, a Texas limited liability company (“Norton”), agrees to perform certain marketing-related services for Ignite Restaurant Group, Inc., a Delaware corporation (“Client”), in the United States with respect to the products and/or services of Client mutually agreed to by the parties (collectively, the “Products”) and set forth on the scope of work on Exhibit A (“Scope of Work”), effective as of April 1, 2014 (the “Effective Date”).

 

1.              SERVICES.

 

(a)                       Norton shall furnish certain marketing services to the Client as set forth in the Scope of Work (the “Services”).  Client may request additional Services from Norton from time to time, subject to Norton’s agreement to handle same and to the terms and conditions of this Agreement and a written supplemental scope of work subject to same.  Compensation and other material terms and conditions for any additional Services not covered by the Scope of Work will be agreed upon in advance and will be the subject of mutual written agreement between Norton and Client.

 

(b)                       Nothing in this Agreement shall be deemed to require that Norton undertake to do any act or perform any services which in its judgment would be misleading, false, libelous, unlawful or otherwise prejudicial to the interests of Client or Norton.

 

2.              AGENCY STATUS.  Norton is authorized to act on Client’s behalf as Client’s agent in order to perform the services outlined in Section 1 above and to secure materials required to execute Client’s advertising.  Client shall provide Norton an executed copy of the Agency Appointment and Liability Letter set forth on Exhibit B prior to the Effective Date.  In contracting with respect to production of materials and acquisition of rights relating thereto, Client hereby authorizes and agrees that Norton may contract with third parties on Client’s behalf on the basis of sequential liability, whereby Client will be solely liable to such third parties with respect to payments due such third parties including, without limitation, any invoices paid by Norton to third parties on Client’s behalf. Norton shall be liable to pay third parties only to the extent that amounts have cleared from Client to Norton.

 

3.              CLIENT APPROVALS.   Norton will secure Client’s approval before making any expenditures or commitments on Client’s behalf, it being agreed that approval of final produced materials shall constitute approval to release such materials.  Written approval of cost estimates by Client will constitute approval of the costs and charges included therein.  If the costs and charges are more than ten percent (10%) higher than the estimate, Client’s further written approval is required.  All commitments made on Client’s behalf with Client’s approval become Client’s responsibility to pay.  Any written approval required under this Section 3 may be orally given, but must be subsequently confirmed in writing (including by e-mail or other written communication) from Client to Norton.

 

4.              REQUEST FOR MODIFICATIONS.   Client reserves the right to modify, revise, or cancel any plans, schedules and, in the event Client so notifies Norton, Norton will take commercially

 

 

reasonable steps as soon as reasonably practicable  to give effect to Client’s instructions.  In connection with any such action, Client agrees to pay Norton according to the terms of this Agreement for any work done, including but not limited to (a) reimbursing Norton for all expenses incurred relating thereto prior to the effective date of termination; (b) assuming Norton’s liability for all contracts and commitments Norton is unable to cancel, Norton having  first taken all commercially reasonable steps as soon as reasonably practicable to so cancel; (c) reimbursing Norton for any cancellation penalties incurred and fees and expenses incurred in carrying out Client’s instructions; and (d) indemnifying Norton for all claims and actions by third parties for damages and expenses that result from carrying out Client’s instructions.

 

5.              SERVICES PROVIDED TO FRANCHISEES.  Norton and Client acknowledge that Franchisees of Client are responsible for making their own arrangements for services similar to the Services covered under this agreement, provided that Client expects that Norton will agree to provide the same or similar services to Franchisees of Client.  In all cases, Norton will offer such services to Franchisees of Client at rates and terms substantially similar and comparable to those under this Agreement.

 

6.              COMPENSATION.  The monthly, retained fee to be paid by Client to Norton for the Services is set forth in Exhibit A.  In addition to the retained fee, Services shall be provided to the Client by Norton in exchange for payments in the amounts set forth on the rate card attached on Exhibit C (the “Rate Card”), which will be billed to the Client on a monthly basis.

 

7.              EXPENSES.    In addition to the compensation, Client shall pay to Norton, as applicable, the following:

 

(a)                       Costs Generally.  Unless provided otherwise herein, Norton shall be reimbursed by Client for reasonable expenses incurred with third parties at Norton’s actual cost, with all such expenses having first been approved in advance by the brand President or Vice President.

 

(b)                       Third Party Costs.  Charges relating to printing or photography for artwork; mechanical and interactive production items (such as comprehensive layouts, finished art, presentation materials, scans, engravings, image composition, photography, photostats, photocopies, engraving, mechanicals, retouching, and proofs, etc.); printing; publication film material; and any other art and mechanical items related to the creation and production of advertisements, (including but not limited to scanning, color correction, digital assembly, and black & white/color proofing) in each case purchased by Norton from third parties in the development and production of Client’s advertising materials, will be billed at the rates charged by such parties.

 

(c)                        Out-of-Pocket Expenses.  All necessary incidental expenses incurred for Client’s account in connection with Norton’s rendition of Services and performance of duties hereunder will be charged to Client, including but not limited to: reasonable travel and lodging; business meals; DVDs; CDs; slides and slide film; shipping and postage;

 

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other out-of-pocket administrative costs; messenger delivery charges; sales taxes, online ad and serving fees; import duties and other custom-house charges; other reasonable expenses incurred by Norton at Client’s special request.

 

8.              BILLING.

 

(a)                       The parties agree that Norton shall bill Client for all Services, fees and expenses.  Norton shall invoice its Monthly Fee (as defined in Exhibit A) on the first day of each month and Client shall pay such invoice within thirty (30) days from the invoice date.

 

(b)                       Production Billing.  Original production billing will be based on 100% of the approved job estimate.  Invoices for all production (including applicable state and local sales tax) shall be paid by Client within thirty (30) days of invoice date. Norton will include all 3rd party invoices as backup. The billing structure for such production is as follows:

 

(i)             Fifty percent (50%) of the total estimate will be billed upon Client approval.

(ii)          Fifty percent (50%) or balance of the job will be billed upon completion.

 

(c)                        Out-of-Pocket Expenses.  Invoices for all other reasonable expenses shall be paid by Client within thirty (30) days of invoice date and shall itemize direct, out-of-pocket expenses incurred during the relevant period by Norton, including expenses for travel, messengers, postage and/or entertainment.

 

(d)                       Adjustments to Estimates.  Norton shall advise Client at the earliest time practicable of a likelihood that costs may exceed the applicable estimate for such work.  Norton shall seek Client’s approval if incurred expenses are anticipated to exceed 10% of an approved estimate.

 

(e)                        Discounts.  Cash discounts will be passed on to Client provided Norton actually receives these discounts from a vendor and Client has paid Norton in advance of the discount due date, and further provided there is no overdue indebtedness then owing by Client to Norton. Norton will provide Client with reasonable notice of applicable discount due dates, but not less than five (5) business days’ notice of applicable discount due dates.

 

(f)                         Disputed Amounts.  In the event that there is a dispute regarding any Norton invoice, Client has sixty (60) days to settle the dispute before exchanging payment. After sixty (60) days, Client agrees to pay the undisputed amount pending resolution of the dispute.  Written notice of any disputed amount must include a description of the dispute in reasonable detail, as well as any written supporting documentation, and must be provided to Norton within sixty (60) days following receipt of a disputed invoice, or the invoiced amounts shall be deemed undisputed and final.

 

(g)                        Timeliness of Payments.  Norton reserves the right to charge Client a late payment charge of one and one-half percent (1.5%) per month on overdue accounts, which shall include the undisputed portion of any disputed.  However, in no event will the rate charged to Client be higher than the maximum rate allowable under applicable law.  Each month Norton will bill and Client will pay such a late payment penalty on any overdue and unpaid balance from the previous month.  Should Client be in default with

 

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respect to payment of any undisputed amounts under this Agreement, Norton reserves the right to suspend some or all Services hereunder until arrangements reasonably satisfactory to the Norton are made.

 

(h)                       Taxes.  Following receipt of invoice or appropriate notice from Norton, Client shall be solely responsible to pay all taxes related to or arising from the Services, however designated and of whatever nature, that are levied or imposed by reason of the transactions contemplated by this Agreement, including, without limitation, all sales, use, transfer, privilege, excise and other taxes, duties or surcharges, whether international, national, state or local, excluding, however, taxes based on Norton’s net income.  Following receipt of invoice or appropriate notice from Norton, Client shall hold harmless and indemnify Norton against and Norton shall not be liable for, liability for all such taxes, duties and/or surcharges.

 

(i)                           Substantial Commitments.  Client understands and agrees that the billing and payment terms herein shall be subject at all times to change at the Norton’s sole discretion in accordance with its normal client credit review evaluation.  Client must be notified in writing of any modification to the billing and/or payment terms at least ninety (90) days before such terms would become effective.  In the event that Norton provides Client with ninety (90) days’ written notice of modification to the billing and/or payment terms, Client shall have the right to accept any such modification or terminate this Agreement by written notice to Norton within thirty (30) days of receipt of Norton’s notice.  Since Norton may in some circumstances be required to make substantial commitments on behalf of Client, it is understood that Norton reserves the right in any such circumstances to require full or partial payment prior to commitment, or such other arrangements assuring payment as are in the commercially reasonable judgment of Norton appropriate or advisable under the circumstances.

 

(j)                          Offset.  Should Norton receive notice from an affiliated entity, i.e. any entity which is now or hereafter controlled by, controlling or under common control with Norton (“Affiliate”) that Client is delinquent in its payment to Affiliate, Norton may without liability to Client, pay over to Affiliate such amounts Affiliate identifies as delinquent.

 

(k)                       Foreign Exchange.  Client will be responsible for the local currency value of all Norton costs regardless of the currency Client uses to settle Norton invoices.  Norton shall use best efforts to estimate the foreign currency value of all costs using published exchange rates in the currency requested by Client.  Norton shall submit a credit or debit invoice for the difference between the estimated foreign exchange rate and the actual rate applied at the time funds are received from Client along with copies of documentation showing the actual exchange rate(s) incurred by Norton for third party purchases. Client shall make payment, or receive credit, as provided in Section 7(g) above.

 

9.              AUDIT.  During the Term (as defined in Exhibit A) and not more than once per contract year, Client, at its expense and through its authorized employees, its independent certified public accountants or designated agents , who shall sign a confidentiality agreement provided by Norton (“Representatives”), shall have the right upon reasonable notice of no less than ten (10) business

 

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days, during normal business days and hours to examine Norton’s records of expenditure pertaining to Client’s account for the purpose of verifying any bills of outside suppliers which Norton has rebilled to Client for the period of up to  two (2) years immediately preceding receipt of written notice of intent to audit.  Except as required by law, Norton shall not be required to retain such records for more than two (2) years.  In no event shall documents revealing individual salaries of employees, profitability, overheads, non-billable expenses, time sheets or other proprietary information of Norton be made available to Client.  Without limiting the foregoing, Confidential Information (as defined in this Agreement) of Norton will not be stored by Client, its Representatives or any third party on their behalf, in any database, nor grouped or aggregated with other data (even if Norton is not identified as the source of the data).  Upon conclusion of the audit, Client and its Representatives shall promptly deliver to Norton any documents or information reflecting Confidential Information and any copies made thereof which the Representatives may have made, may have access to, or may receive or possess during or in connection with the audit.

 

10.       NO WARRANTIES.   NORTON MAKES NO WARRANTIES HEREIN AND HEREBY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE.

 

11.       INDEMNIFICATION.

 

(a)                       It will be Norton’s responsibility to submit to Client for approval, and obtain Client’s written approval of, all advertising or other materials prepared under this Agreement, prior to the publication, broadcast or dissemination thereof.

 

(b)                       Norton will defend, indemnify and hold Client harmless against any and all damages, fees, penalties, deficiencies, losses and expenses (including court costs, and reasonable attorneys’ fees) (“Losses”) suffered, incurred or sustained by Client or to which Client becomes subject, in any claim, suit or proceeding instituted by a third party for the unauthorized use of name or likeness of any person; libel; slander; defamation; disparagement; piracy; plagiarism; idea misappropriation; infringement of copyright, title, slogan or other property rights (excluding trademarks and service marks as provided in the Section entitled TRADEMARK OBLIGATIONS, below), in connection with the advertising or other material prepared pursuant to this Agreement.  The foregoing indemnity shall not apply where: (i) such Losses arise from the use of materials provided by Client; (ii) such Losses arise from the use by Client of Norton- supplied materials in a manner inconsistent with agreements with third parties provided such agreements have first been made known to Client by Norton; (iii) Client has directed the Norton to take or to refrain from taking certain actions; or (iv) Client has elected to assume the risk of a claim in the nature of the foregoing.

 

(c)                        It will be Client’s responsibility to:

 

(i)             Provide to Norton, at its own expense, all content or materials for incorporation or use in connection with the deliverables and/or Services,

 

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including Client’s name, logo and related trademarks (“Client Content”);

 

(ii)          Procure at its own expense all necessary rights, licenses, permissions, waivers, releases and other documentation to permit use of all Client Content;

 

(iii)       Take sole responsibility for payments to third parties for the use of the Client Content;

 

(iv)      Provide information and/or data relevant to claims or representations made with respect to its own and competitive products or services.

 

(v)         Review all advertising or other materials prepared under this Agreement in order to ascertain that all claims or representations made therein, whether direct or implied, are true accurate and supportable by objective and reliable data in its possession and are not deceptive or misleading, and to confirm the accuracy and legality of the descriptions and depictions of its Products and /or any competitive products or services.

 

(d)                       Client grants Norton a non-exclusive, royalty-free right and license to use and modify the Client Content in the provision of Services. Client shall remain the exclusive owner of the Client Content.  Client hereby represents and warrants that:  (a) it is the owner or valid licensee of the Client Content and it has secured all necessary licenses, consents, permissions and releases for Norton’s use of the Client Content; (b) there are no conflicting claims with respect to Client’s rights; (c) use of the Client Content pursuant to this Agreement shall not infringe the rights of any third party; and (d) the Client Content (including all claims, calculations and formulae therein) is and will remain accurate, complete and correct in all material respects.

 

(e)                        Client will defend, indemnify and hold Norton harmless against any and all damages, fees, penalties, deficiencies, losses and expenses (including court costs, and reasonable attorneys’ fees) suffered, incurred or sustained by Norton or to which Norton becomes subject, resulting from, arising out of or relating to, any claim, suit or proceeding instituted by a third party relating to: (i) false, deceptive, or misleading description, depiction or comparison of the product(s) or service(s) of Client and/or any competitive product(s) or service(s) or otherwise relating to the effectiveness, nature, quality or content of the Products; (ii) the use by Norton of material, information or data furnished by or at the direction of Client (including, without limitation, the Client Content); (iii) any issues of product liability or otherwise concerning the nature, use or performance of the products and services being offered by Client; (iv) idea misappropriation for ideas presented by third parties to Client; (v) the Client having directed the Norton to take or to refrain from taking certain actions; (vi)  use by Client of materials supplied by Norton in a manner inconsistent with agreements with third parties; and/or (vii) any matters for which Client elected to assume the risk of a claim.

 

(f)                         The indemnities in this Agreement are contingent upon: (i) the indemnified party promptly notifying the indemnifying party in writing of any claim which may give rise to a claim for indemnification hereunder; (ii) the indemnifying party being allowed to

 

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control the defense and settlement of such claim; and (iii) the indemnified party cooperating with all reasonable requests of the indemnifying party (at the indemnifying party’s expense) in defending or settling such claim.  The indemnified party shall have the right, at its option and expense, to participate in the defense of any action, suit or proceeding relating to such a claim through a counsel of its own choosing, provided that the indemnified party will not settle any claim without the consent of the indemnifying party.

 

12.       TRADEMARK OBLIGATIONS.

 

(a)                       At Client’s request and upon agreement by Norton, Norton may create, develop or otherwise provide trademarks to Client in the form of taglines, slogans, key copy phrases, logos, designs or product/brand  names (collectively “Marks”) for Client’s use in connection with advertising created by Norton.  The direct cost of any third party vendor charges shall be paid by Client.

 

(b)                       Client shall own all right, title and interest in and to any Marks developed by Norton and paid for by Client.

 

(c)                        At Norton’s request and following preliminary search by Norton, Client shall perform full trademark searches for Norton-created Marks for Client’s use in advertising or in other materials.  Client shall be responsible for the ultimate review of all search reports and for the clearance of any Marks.  If Client approves the use of Marks in the advertising or other material prepared pursuant to this Agreement, Norton shall have no indemnification obligation with respect to their use, and Client shall indemnify Norton with respect to any claims related thereto.

 

13.       OWNERSHIP, CUSTODY AND USE OF MATERIALS.

 

(a)                       All plans for advertising, unique campaign ideas, slogans, copy themes, preliminary sketches, layouts, copy, finished artwork, television and radio commercials, and other similar material prepared for Client or purchased for Client’s account by Norton and paid for by Client in accordance with the terms of this Agreement (“Developed Property”), shall be the exclusive property of Client, except to the extent that such Developed Property contains (i) materials in which rights therein shall have been reserved by third parties, including but not limited to, actors, photographers, and persons engaged or employed by Norton to compose the words and/or music of musical compositions used on behalf of Client, and/or (ii) commercially available software required for the development, maintenance or implementation of a deliverable.

 

(b)                       Where Client, its affiliates, representatives, licensees or assigns, derives revenue from the use of Developed Property either directly or from the licensing of Developed Property to third parties:

 

(i)             in merchandising, including but not limited to, in connection with toys,

 

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clothing, books, games, phones, and premiums;

 

(ii)          in television programming or motion pictures or other audiovisual or audio works (including but not limited to videos/DVDs/CDs/online); and/or

 

(iii)       for other non-advertising uses;

 

Client agrees to first negotiate in good faith with Norton with respect to Norton’s compensation for  such usage.

 

(c)                        Notwithstanding the foregoing, Norton retains all of its rights, title and interest in and to (including, without limitation, the unlimited right to use) (i) all proprietary information; (ii) all materials owned by or licensed to Norton from the date hereof, or independent from, the performance of services under this Agreement, and all modifications thereof; and (iii) all generic information, and all ideas, products, devices, methodologies, software, computer programs, techniques, know-how, algorithms, specifications, source code, data procedures, applications, processes or procedures and modifications thereto, whether or not patentable or copyrightable, whether tangible or intangible, and all right title and interest in and to the intellectual property derived from such works, used, created or developed by Norton in the general conduct of its business including those developed during the provision of services to Client ((ii) and (iii), collectively, “Norton Tools”).  Client is granted a perpetual non-exclusive royalty-free license to use and modify the Norton Tools solely in connection with the deliverables provided pursuant to this Agreement, subject to any third party rights therein.

 

(d)                       Norton will take reasonable precautions to safeguard any and all of Client’s property entrusted to the custody or control of Norton’s employees, agents or assigns; provided, however, in the absence of negligence on Norton’s part, Norton shall not be held responsible for any loss, damage or destruction by others of any of such property, unless as otherwise agreed to by the parties in writing.

 

(e)                        Norton may use any advertising materials produced by Norton hereunder and owned by Client on Norton’s creative reel or portfolio and for criticism and commentary purposes whether in digital form or any other form now known or hereafter devised after first having obtained written consent from Client.

 

(f)                         Norton shall retain final advertising materials for a period of the lesser of three (3) years following its development or one (1) year following termination of this Agreement unless Client requests delivery or destruction of such materials at an earlier time.

 

14.       NOTICE.  All notices which either party is required or may desire to give the other party hereunder shall be sufficiently given if delivered in person, by registered or certified mail, postage prepaid, by prepaid overnight courier, or by email addressed as follows:

 

8

 

	
To Client at:
    	
Ignite   Restaurant Group, Inc.
    
	
 
    	
9900 Westpark Drive, Suite 300
    
	
 
    	
Houston, TX 77063
    
	
 
    	
Attention: Michael J. Dixon,
    
	
 
    	
President and CFO
    
	
 
    	
Email: mdixon@igniterestaurants.com
    
	
 
    	
 
    
	
With a copy which shall not constitute notice to:
    
	
 
    
	
 
    	
Ignite Restaurant Group
    
	
 
    	
9900 Westpark Drive, Suite 300
    
	
 
    	
Houston, TX 77063
    
	
 
    	
Attention: Edward W. Engel,
    
	
 
    	
SVP and General Counsel
    
	
 
    	
Email: eengel@igniterestaurants.com
    
	
 
    	
 
    
	
To Norton at:
    	
Norton   Creative LLC
    
	
 
    	
9434 Katy Freeway, Suite 400
    
	
 
    	
Houston, TX 77055
    
	
 
    	
Attention: Robin L. Ahearn
    
	
 
    	
Email: Robin@norton-creative.com
    
	
 
    	
 
    
	
With a copy which shall not constitute notice to:
    
	
 
    
	
 
    	
McIntyre LLC
    
	
 
    	
1415 N. Loop West, Suite 616
    
	
 
    	
Houston, TX 77008
    
	
 
    	
Attention: Lee R. McIntyre
    
	
 
    	
Email: lrm@mcintyrecsb.com
    

 

or to such other address as shall be furnished in writing and in the manner set forth above by either party.  Such notice shall be deemed to have been given as of the date delivered in person, or as of the date of mailing or being sent by prepaid overnight courier, or as of the date the sending equipment confirms an email has been sent.

 

15.       TERM AND TERMINATION.

 

(a)                       This Agreement is effective as of the Effective Date first stated above, and will continue in full force and effect from that date until the end of the Term (as defined in the Scope of Work).

 

(b)                       During the either the Notice Period or the Cure Period, the Agreement will remain in full force and effect, and Norton’s and Client’s rights, duties and responsibilities shall continue in full force and effect during the Notice Period or the Cure Period, including the payment by Client of any fees or other compensation (e.g. the then-current Monthly Fees and incentive compensation) due Norton hereunder.

 

(c)                        Upon final payment by Client of all outstanding Norton and third party fees and expenses, Norton will, at Client’s request, transfer, assign and make available to Client or Client’s designated representative, at Client’s cost, all property and materials in

 

9

 

Norton’s possession or control belonging to and paid for by Client, including, but not necessarily limited to, all files, reports and other written documents which have come into Norton’s possession from Client or which relate to Client’s business, and materials and work in progress prepared by Norton for Client and, where Norton has been providing website development or maintenance services pursuant to any Scope of Work, via CD ROM or other format acceptable to Client, a full copy of any Client web sites, sections of websites, or other interactive functionalities covered by any Scope of Work, along with all programming code necessary to operate and modify the web site(s) and interactive functionalities (which shall be Client’s sole responsibility except to the extent that it may be otherwise agreed upon in writing between the parties).  Client agrees to accept such transfer and assignment and to reasonably cooperate with Norton in effecting the same.

 

(d)                       Norton shall give all reasonable cooperation toward transferring with approval of third parties in interest all reservations, contracts and arrangements with advertising media, or others, for advertising space and time, or materials yet to be used, and all rights and claims thereto and therein, upon being duly released from the obligations thereof.  Any contracts or commitments that cannot be transferred or assigned to Client shall be carried to completion by Norton and paid for by Client in accordance with the terms of this Agreement, unless some other mutually acceptable approach is agreed to by Norton and Client in writing.  Client agrees to indemnify Norton with respect to all uncompleted contracts and reservations so transferred to Client and all non-cancelable commitments entered into by Norton on Client’s behalf.

 

(e)                        Any material breach of the terms of this Agreement shall constitute grounds for termination by either Norton or Client, provided that the party in breach shall be provided written notice of the breach.  Upon receipt of such notice, the party in breach shall have thirty (30) days to cure such breach (the “Cure Period”).

 

16.       FAILURE OF SUPPLIERS.  Norton shall endeavor to guard against any loss to Client as the result of the failure of suppliers to properly execute their commitments, but Norton will not be responsible for their failure to the extent that such failure was beyond the control of Norton or unless such loss is caused as a result of negligence by Norton.

 

17.       CONFIDENTIALITY.   Each party (the “Receiving Party”) will treat as confidential and properly safeguard any and all information, documents, papers, programs and ideas relating to the other party (the “Disclosing Party”), its operations, finances, fees and products, disclosed to the Receiving Party and designated by the Disclosing Party as confidential or which should be reasonably understood to be confidential (“Confidential Information”), except that information that (a) is or falls into the public domain, (b) is disclosed to the Receiving Party by a third party which is not under an obligation of confidentiality to the Disclosing Party, (c) was already known to the Receiving Party and/or (d) is independently developed by the Receiving Party without reference to the Confidential Information shall not be deemed Confidential Information.  The Receiving Party shall inform the Disclosing Party of all requests for or inquiries into the Disclosing Party’s Confidential Information by third parties.  It shall not be deemed a breach of this Paragraph 16 if a Receiving Party discloses Confidential Information after being advised by

 

10

 

counsel that such party is legally compelled to do so, after providing written notice to the Disclosing Party and giving the Disclosing Party sufficient time to seek a protective order.  In the course of performing the services required of Norton hereunder, Norton may disclose only such Confidential Information as Client shall have approved for disclosure in writing.  This provision shall survive the termination of this Agreement and shall remain in full force and effect for a period of three (3) years following the termination of this Agreement.

 

18.       MISCELLANEOUS.

 

(a)                       Non-Solicitation of Employees.  Norton and Client agree that neither party will, during the term of this Agreement or for one year after expiration or termination, directly or indirectly, solicit, employ, contract or otherwise use in any way any person who was an employee of either party while this Agreement was in effect.

 

(b)                       Assignment.  Neither party shall assign this Agreement without the other party’s prior written consent. Any purported assignment in violation of this clause shall be deemed null and void provided however that a change in control of Client shall not be deemed an assignment for purposes herein.

 

(c)                        Waiver. No waiver of any provision or of any breach of this Agreement shall constitute a waiver of any other provisions or any other or further breach, and no such waiver shall be effective unless made in writing and signed by an authorized representative of the party to be charged with such a waiver.

 

(d)                       Headings.  The headings contained in this Agreement have been inserted for convenience of reference only and shall in no way define, limit or affect the scope and intent of this Agreement.

 

(e)                        Email Correspondence.   Email correspondence shall constitute written approval pursuant to this Agreement.

 

(f)                         Severability.  In the event that any provision of this Agreement shall be illegal or otherwise unenforceable, such provision shall be severed, and the balance of the Agreement shall continue in full force and effect.

 

(g)                        Governing Law/Venue. This Agreement shall be governed by the laws of the State of Texas, without giving effect to its conflicts of laws principles.  Each party consents to the exclusive jurisdiction of the federal and/or state courts of such state in regard to any dispute arising out of this Agreement.

 

(h)                       Force Ma jeure.  Norton shall not be liable for any delay or failure to carry out or make continuously available the services if such delay or failure is due to any cause beyond the control of Norton including, without limitation, restrictions of law or regulations, terrorism, threat of terrorism, labor disputes, acts of God, telecommunications, network or power failures or interruptions, or mechanical or electronic breakdowns.

 

(i)                           Damages.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT OR OTHERWISE, FOR ANY LOST PROFITS, BUSINESS INTERRUPTION, OR 

 

11

 

FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR LIABILITY.

 

(j)                          Survival.  The following provisions of this Agreement shall survive expiration or termination of this Agreement:   AGENCY STATUS; EXPENSES; BILLING; LIMITED WARRANTY; INDEMNIFICATION; TRADEMARK OBLIGATIONS; OWNERSHIP, CUSTODY AND USE OF MATERIALS; NOTICE; TERM AND TERMINATION; FAILURE OF SUPPLIERS; CONFIDENTIALITY; and M ISCELLANEOUS.

 

(k)                       Entire Agreement.  This Agreement constitutes the parties’ entire understanding of the matters set forth herein and supersedes any prior understanding or agreement.  This Agreement may only be modified in a writing signed by the parties hereto.  In the event of a conflict between the terms of this Agreement and the terms of any Scope of Work, the terms of this Agreement shall govern.

 

(Signature page follows)

 

12

 

IN WITNESS WHEREOF, the parties have signed this Agreement as of the date and year written above.

 

	
NORTON   CREATIVE LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Robin L. Ahearn
    	
 
    	
 
    
	
 
    	
Robin   L. Ahearn
    	
 
    
	
 
    	
President &   CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
IGNITE   RESTAURANT GROUP, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Michael J. Dixon
    	
 
    	
 
    
	
 
    	
Michael   J. Dixon
    	
 
    
	
 
    	
President   and CFO, Ignite Restaurant Group, Inc.
    	
 
    

 

SIGNATURE PAGE TO SERVICES AGREEMENT

 

13

 

EXHIBIT A

 

SCOPE OF WORK

 

DESIGN SERVICES

 

APRIL 1, 2014 THROUGH SEPTEMBER 30, 2015

 

THIS SCOPE OF WORK (“SOW”) is entered as of the commencement date set forth below by and between Ignite Restaurant Group, Inc. (“Client”) and Norton Creative L.L.C (“Agency”) pursuant to the provisions of the Services Agreement dated April 1, 2014, between Client and Agency. All terms beginning with a capitalized letter in this SOW and not defined herein have the meaning set forth in the Agreement.

 

1.              TERM: The term of this SOW shall commence on April 1, 2014 and run through September 30, 2015, subject to renewal for additional Contract Years.

 

2.              SCOPE OF WORK:

 

Print Design Services

 

·                  Campaign Point of Purchase including Menu Insert, Tabletop, Beverage, Promotional Materials, Copywriting

·                  Menu Design Management

 

Interactive Design- Front-end support

 

·                  Campaign e-mail Design and Distribution

·                  Website Design and Management

·                  Social Media Design and Distribution

·                  Digital Advertising Design

·                  Digital Asset Management

·                  Copywriting

 

Production Services

 

·                  Local Store Marketing: Flyers, Banners, POP Materials

·                  Copywriting

 

Art Direction/Food Photography

 

·                  Manage photographer and shoot process

·                  Art direct at shoot

·                  Attend food showings to understand product

 

Traffic and Production Management

 

·                  Project Workflow

·                  Weekly Status Updates

·                  Manage printer and make recommendations

·                  Press Check/Quality Management

 

 

Strategic Insight/Conceptual Services

 

·                  Provide on-going insights for refining the marketing and design strategy

·                  Marketing, campaign and promotional ideation

·                  Retail and Uniform Design; Merchandising Planograms and Décor recommendations

·                  Product and Campaign Naming, Descriptions

 

Note:  The Services in this SOW do not include:

 

·                  TV Creative Direction & Production Leadership

·                  Social Media Daily Content

·                  Franchise Design & Production

·                  Back-end Digital Programming & Flash

·                  Training and HR Materials

 

3.              COMPENSATION

 

a.              The fee to be paid by Client to Agency for the Services set forth in Section 1 of the Agreement as detailed in this Exhibit A will be a fixed, non-reconcilable fee of one million six hundred fifty thousand Dollars ($1,650,000) to be billed in eighteen (18) equal monthly installments with the first payment being due within 30 days of the execution hereof and split between Joe’s Crab Shack, Brick House Tavern + Tap and Romano’s Macaroni Grill.

 

i.                  Joe’s Crab Shack: $37,500 per month for 18 months

ii.               Romano’s Macaroni Grill:  $37,500 per month for 18 months

iii.            Brick House Tavern +Tap:  $16,666 per month for 18 months

 

1.              The above figures are provided for brand budgeting purposes and billing only and do not represent the dollar amount of services to be dedicated to each brand per billing period.  Notwithstanding the foregoing budgeting and billing amounts, the services for which the aggregate monthly payment is made may be allocated in the sole discretion of Client.

 

b.              Agency and Client shall mutually agree on a revised Services Monthly Fee and Rate Card at least ninety (90) days prior to September 30, 2015, thereby extending the Term for an additional twelve (12) months, and shall endeavor to repeat this process each subsequent twelve (12) month period thereafter (each such 12 month period, a “Contract Year”). In the event that a revised Services Monthly Fee and Rate Card for the new Contract Year is not agreed upon by the end of the then-current Contract Year, the Term shall expire and this SOW and the related Agreement shall be terminated.

 

(Signature page follows)

 

 

IN WITNESS WHEREOF, the parties have signed this Scope of Work as of the date and year written above.

 

	
NORTON CREATIVE LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Robin L. Ahearn
    	
 
    	
 
    
	
 
    	
Robin L. Ahearn
    	
 
    
	
 
    	
President & CEO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
IGNITE RESTAURANT GROUP, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Michael J. Dixon
    	
 
    	
 
    
	
 
    	
Michael J. Dixon
    	
 
    
	
 
    	
President and CFO
    	
 
    

 

SIGNATURE PAGE TO SCOPE OF WORK

 

 

Exhibit B

 

 

AGENCY APPOINTMENT AND LIABILITY LETTER

 

Effective Date:    April 1, 2014

 

To Whom It May Concern:

 

Ignite Restaurant Group, Inc. (“Ignite”) agrees that all orders placed by Norton Creative, LLC (“Norton”) on its behalf with printers, photographers and other 3rd party vendors are deemed booked directly with Ignite, in care of Norton. Ignite assumes the full liability for the orders until funds specifically intended to pay for such orders have cleared to Norton.

 

 

	
 
    	
Sincerely,
    
	
 
    	
IGNITE   RESTAURANT GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Michael J. Dixon
    
	
 
    	
By:   Michael J. Dixon
    
	
 
    	
Title:   President and CFO
    

 

 

 

 

EXHIBIT C

 

RATE CARD

 

(see attached)

 

 

 

April 1, 2014

 

	
Rate Card (rates per hour)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print
    	
 
    	
 
    
	
Graphic Design
    	
 
    	
$200
    
	
 
    	
 
    	
 
    
	
Production Art
    	
 
    	
$80
    
	
 
    	
 
    	
 
    
	
Digital
    	
 
    	
 
    
	
Interactive Design
    	
 
    	
$220
    
	
 
    	
 
    	
 
    
	
Programming Front End
    	
 
    	
$120
    
	
 
    	
 
    	
 
    
	
Programming Back End 
    	
 
    	
$220
    
	
 
    	
 
    	
 
    
	
Flash
    	
 
    	
$200
    
	
 
    	
 
    	
 
    
	
Production
    	
 
    	
$90
    
	
 
    	
 
    	
 
    
	
Full Website Design
    	
 
    	
Per project
    
	
 
    	
 
    	
 
    
	
Interiors
    	
 
    	
 
    
	
Interior Design
    	
 
    	
$250
    
	
 
    	
 
    	
 
    
	
CAD Services
    	
 
    	
$50
    
	
 
    	
 
    	
 
    
	
New Product/Concept 
    	
 
    	
Per Project 
    
	
 
    	
 
    	
 
    
	
Brand Assets
    	
 
    	
$100
    
	
 
    	
 
    	
 
    
	
Photography
    	
 
    	
 
    
	
Product photography 
    	
 
    	
$1800/per day studio use fee
    
	
 
    	
 
    	
 
    
	
Head shots
    	
 
    	
$250/session fee, includes 3 digital files
    
	
 
    	
 
    	
 
    
	
Product/Food styling
    	
 
    	
$1850/per studio day
    

 

9434 OLD KATY ROAD. SUITE 400 | HOUSTON, TX 77055 | NORTON-CREATIVE.COM

 

 

	
Rate Card, cont’d.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Consulting
    	
 
    	
 
    
	
Marketing Strategy
    	
 
    	
$250
    
	
 
    	
 
    	
 
    
	
Menu Strategy
    	
 
    	
$180
    
	
 
    	
 
    	
 
    
	
Media Strategy
    	
 
    	
$150
    
	
 
    	
 
    	
 
    
	
Art Direction
    	
 
    	
$180
    
	
 
    	
 
    	
 
    
	
Menu
    	
 
    	
 
    
	
Price/Item Versioning
    	
 
    	
$70
    
	
 
    	
 
    	
 
    
	
Re-design
    	
 
    	
Per Project

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