Document:

Exhibit

MANAGEMENT SERVICES AGREEMENT

This Management Services Agreement (this “Agreement”) is entered into as of October 1, 2016 (the “Effective Date”), by and between Contango ORE, Inc., a Delaware corporation (“CORE”) and Juneau Exploration, L.P., a Texas limited partnership (“JEX”).  CORE and JEX may be referred to herein collectively as the “Parties” or individually as a “Party”.
RECITALS
A.    CORE is in the business of exploring in the State of Alaska for gold ore and associated minerals through Peak Gold, LLC, a Delaware limited liability company (the “Joint Venture Company”) jointly owned with a subsidiary of Royal Gold, Inc. (“Royal Gold”);
B.    JEX, through its executives has provided and will continue to provide CORE certain managerial, financing, accounting and administrative services in connection with CORE’s business affairs; 
C.      JEX has historically not been reimbursed by     CORE for the costs incurred in providing such services but the independent directors of CORE have determined that it is both appropriate and desirable for JEX to be reimbursed for certain of the costs.
C.    CORE and JEX desire to enter into this Agreement to set forth the terms and conditions for JEX to continue to provide services to CORE.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, CORE and JEX agree, as follows:
1.Services.
(a)    Subject to the terms and conditions set forth in this Agreement, JEX shall perform in good faith such services as may be reasonably requested from time to time by the Board of Directors of CORE (the “Board”), including, but not limited to, the services (the “Services”) set forth in the Scope of Work attached hereto and incorporated herein as Exhibit A (“Scope of Work”).  JEX agrees to perform the Services for CORE.
(b)    CORE may, from time to time, request changes in the Scope of Work.   Any changes to the Scope of Work must be mutually agreed upon between JEX and CORE before they are incorporated in written amendments to Exhibit A of this Agreement.
(c)    JEX shall commence the Services on the Effective Date and shall perform all Services as required during the Term of this Agreement.  
2.    Term of Agreement.  This Agreement shall commence on the Effective Date and shall remain in full force and effect for a term of one (1) year and each month thereafter unless terminated upon ninety (90) days’ prior written notice by either Party (the “Term”).
3.    Compensation.  During the Term of this Agreement and in consideration of the Services performed by JEX hereunder, JEX shall be entitled to receive the following:
(a)    A monthly payment in the amount of $32,000 beginning the Effective Date during the Term, which payment includes an allocation of $6,900 per month for costs for office space and equipment (“Service Fees”) but excludes any allocation of payment pursuant to this Agreement to Mr. John B. Juneau who serves as the Chairman, President and Chief Executive Officer of CORE.
(b)    Reimbursement for expenses, legal costs, filing fees, SOX fees, and other third party fees incurred by JEX as well as all other reasonable and necessary expenses incurred by JEX in providing the Services (collectively, “Reimbursable Expenses”).
4.    Payments.  CORE shall promptly pay to JEX all Service Fees monthly in advance and all Reimbursable Expenses upon submission of satisfactory evidence of payment by JEX.  CORE shall not withhold, nor shall CORE be obligated to withhold, taxes or deductions from payments made to JEX.  JEX shall pay, and shall be solely responsible for payment of any applicable taxes on payments made by CORE to JEX for Services rendered under this Agreement.
5.    Ownership of Work Product.  All reports, documents or other written material developed by JEX in the performance of this Agreement shall be and remain the property of CORE without restriction, claim, lien or limitation upon its use or dissemination by CORE.   
6.    Confidential Status; Disclosure of Information.  All agreements, data, reports, documents, materials or other information developed or received by JEX or provided to JEX by or on behalf of CORE shall be deemed confidential and shall not be disclosed by JEX without the prior written consent of CORE.  CORE shall grant such consent if disclosure is legally required by applicable law.  
7.    Independent Contractor.
(a)    JEX is an independent contractor and shall have no power to bind CORE or to incur any debt, obligation or liability on behalf of CORE.  CORE shall not have power to bind JEX or to incur any debt, obligation or liability on behalf of JEX.
(b)    JEX shall pay all required taxes on amounts paid to JEX under this Agreement.  
(c)    JEX shall fully comply with all applicable laws in rendering the Services.
(d)    CORE is not and shall not be obligated to provide any employee benefits to JEX.
8.    Indemnification.   To the fullest extent permitted by law, CORE shall, at its sole respective cost and expense, defend, protect, indemnify, and hold harmless JEX, its partners and its and their respective officers, attorneys, agents, employees, successors, and assigns (collectively, “JEX Indemnitees”) from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, expert witnesses, or other professionals and all costs associated therewith (collectively, “Claims”), resulting from any negligent act, error, omission or failure to act by CORE (“CORE Indemnitor”) or, as applicable, its officers, agents, servants, employees, subcontractors, material men, suppliers or their respective officers, agents, servants or employees in connection with, resulting from, or related to this Agreement.  Subject to paragraph 10 below, to the fullest extent permitted by law, JEX shall, at its sole cost and expense, defend, protect, indemnify, and hold harmless CORE and its officers, attorneys, agents, employees, successors, and assigns (collectively, “CORE Indemnitees” and together with the JEX Indemnitees, the “Indemnitees”) from and against any and all Claims resulting from any acts constituting bad faith, willful misconduct or gross negligence by JEX (“JEX Indemnitor” and together with CORE Indemnitor, “Indemnitor”) or, as applicable, its officers, agents, servants, employees, subcontractors, material men, suppliers or their respective officers, agents, servants or employees in connection with, resulting from, or related to this Agreement.  This indemnity provision is effective regardless of any prior, concurrent, or subsequent passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence.  This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law or at equity.  Payment is not required as a condition precedent to an Indemnitee’s right to recover under this indemnity provision, and an entry of judgment against Indemnitor shall be conclusive in favor of the Indemnitee’s right to recover under this indemnity provision.  Indemnitor shall pay Indemnitees for any attorneys’ fees and costs incurred in enforcing this indemnification provision.  This indemnity is effective without reference to the existence or applicability of any insurance coverages which may have been required under this Agreement or any additional insured endorsements which may extend to Indemnitees.  This indemnity provision shall survive the termination of this Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law. 
9.    Limitations on Liability.   Notwithstanding anything to the contrary, neither Party shall be liable to the other Party for any punitive, incidental, special, exemplary or consequential damages arising in connection with or with respect to this Agreement.
10.    Limits of JEX Responsibility.  JEX assumes no responsibility other than to render the Services described herein in good faith and shall not be responsible for any action of CORE in following or declining to follow any advice or recommendation of JEX.  JEX, its partners, officers, employees and affiliates (“JEX Persons”) will not be liable to CORE, its shareholders, or others, except by reason of acts constituting bad faith, willful misconduct or gross negligence of JEX Persons in the provision of Services.  CORE shall reimburse, indemnify and hold harmless JEX Persons for and from any and all Claims of any nature whatsoever in respect to or arising in connection with any acts or omissions of CORE and its affiliates and any acts or omissions of any JEX Person undertaken in good faith and in accordance with the standard set forth above.  The terms of this paragraph 10 shall survive the termination of this Agreement.
11.    Mutual Cooperation.
(a)    CORE shall provide JEX with all pertinent data, documents and other requested information as is reasonably available for the proper performance of the Services by JEX.  
(b)    In the event any claim or action is brought by a third party against CORE relating to JEX’s performance in connection with this Agreement, JEX shall render any assistance that CORE may reasonably request.
12.    Notices.
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on:  (a) the day of delivery if delivered by hand or overnight courier service during CORE’s and JEX’s regular business hours; or (b) on the third (3rd) business day following deposit in the United States mail, postage prepaid, to the addresses heretofore below, or to such other addresses as the Parties may, from time to time, designate in writing.  
If to CORE:   
 
Contango ORE, Inc.
3700 Buffalo Speedway, Suite 925 
Houston, Texas 77098 
Attention:  Leah Gaines 
Phone: (713) 960-1379

If to JEX: 
 
Juneau Exploration L.P. 
3700 Buffalo Speedway, Suite 925 
Houston, Texas 77098 
Attention:  John B. Juneau 
Phone: (713) 805-4086 

13.    Governing Law.  This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of Texas.
14.    Dispute Resolution;  Arbitration.  In the event that there is any controversy, claim or dispute between the Parties arising out of or related to this Agreement, the Parties shall for a period of thirty (30) days attempt in good faith to negotiate a resolution.   If the Parties are unable in such time period to resolve the controversy, claim or dispute, either Party may, by written notice to the other Party, request that the matter be submitted to arbitration under and pursuant to the applicable commercial arbitration rules and procedures of the American Arbitration Association.  The arbitration shall be held in Houston, Texas.  The arbitrator(s) shall have no affiliation or relationship with either Party or their counsel and, when feasible, shall have training or experience in the subject matter of the dispute.  Any award or decision rendered pursuant to such rules and procedures shall be final and binding on each of the Parties hereto and their respective successors and assigns.  Such decision or award shall be in writing signed by the arbitrator(s) and shall state the reasons upon which the decision or award is based.  The arbitrator(s), in deciding any dispute, controversy or claim arising under this Agreement as provided in this Section 14, shall look to the substantive laws of the State of Texas for the resolution of the dispute, controversy or claim.  Judgment on any decision or award pursuant hereto may be entered in any court having jurisdiction thereof.
15.    No Partnership or Joint Venture.  CORE and JEX are not partners or joint venturers with each other and neither the terms of this Advisory Agreement nor the fact that CORE and JEX have joint interests in any one or more investments shall be construed so as to make them partners or joint venturers or impose any liability as such partners or joint venturers or impose any liability as such on either of them.
16.    Fidelity Bond.  JEX shall not be required to obtain or maintain a fidelity bond in connection with the performance of its services hereunder.
17.    Board of Directors and Officers.  Mr. John B. Juneau is a member of the Board of Directors of CORE and is Chairman, President and Chief Executive Officer of CORE.  Mr. Juneau shall be compensated separately from the terms of this Agreement as determined in the sole discretion of the independent Directors of the Board of CORE.  Mr. Juneau, Ms. Leah Gains, Vice President and Chief Financial Officer of CORE, and any other employees of JEX who provide Services pursuant to this Agreement, may be granted restricted stock, stock options or other forms of compensation by the independent Directors of the Board of CORE as such Directors may determine in their sole discretion and while serving as Officers or Directors of CORE, shall be included in all insurance coverages that CORE may have for its Officers and Directors. 
18.    JEX Interests.  Nothing herein shall prevent JEX, Juneau nor any employee of Juneau from (i) continuing to own stock or stock options in CORE, and (ii) engaging in any other business or enterprise, including engaging in oil and gas exploration, development and production.
19.    Further Assurances. Each of the Parties hereto shall do such further acts, shall perform such further actions, and shall execute and deliver such additional agreements and instruments as the other Party may reasonably require to consummate, evidence or confirm the agreements and understandings contained herein in the manner contemplated hereby.
20.    No Assignment.  JEX shall not assign or transfer any interest in this Agreement nor the performance of any of JEX’s obligations hereunder, nor shall it subcontract any of the Services or the Scope of Work without the prior written consent of CORE.
21.    Time Is Of The Essence.  Time is hereby expressly declared to be of the essence of this Agreement and of each and every provision hereof; and each and every provision hereof is hereby declared to be and made a material, essential and necessary part of this Agreement.
22.    Exhibits; Precedence.  All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement.  In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. 
23.    Entire Agreement and Amendments.  This Agreement, and any other documents incorporated herein by specific reference, represent the entire and integrated agreement between JEX and CORE.  As of September 30, 2016, the office sublease between CORE and JEX is hereby terminated.  This Agreement supersedes all prior oral or written negotiations, representations or agreements.  This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the Parties which expressly refers to this Agreement. 
24.    Severability.  Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law.  If any provision of this Agreement, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect.  
25.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.   

[Remainder of Page Intentionally Left Blank]

WHEREFORE, the Parties hereto have executed this Agreement as of the date first above written.
CONTANGO ORE, INC.  
 
By:         /s/ Leah Gaines                      
Name:    Leah Gaines
Title:    Vice President and Chief Financial Officer

JUNEAU EXPLORATION, L.P. 
 
By: Juneau GP, LLC 
its General Partner 
 
By:         /s/ John B. Juneau         
Name:    John B. Juneau
Title:    President

        

Exhibit A 
 
Scope of Work

1.    Services.  Subject to the supervision of the Board and upon its direction, and consistent with the provisions of the CORE’s Certificate of Incorporation and Bylaws, JEX shall:
(a)    advise CORE and the Board with respect to the business and affairs of CORE and the Joint Venture Company;
(b)    establish bank accounts and invest and reinvest on a short-term basis any funds of CORE and manage CORE’s short-term investments including the acquisition and sale of money market instruments;
(c)    investigate, select and conduct relations and enter into appropriate contracts on behalf of the Company with individuals, corporations and entities in furtherance of the business activities of CORE;
(d)    monitor the performance of the Joint Venture Company and report to the Board regarding its status;
(e)    obtain for CORE such services as may be required for other activities relating to the business of CORE;
(f)    administer such day-to-day bookkeeping and accounting functions as are required for the proper management of the assets of CORE, prepare or cause to be prepared such reports as may be required by any governmental authority in connection with the ordinary conduct of CORE’s business, including without limitation, periodic reports, returns or statements required under the Securities Exchange Act of 1934, as amended, the Internal Revenue Code, the securities and tax statutes of any jurisdiction in which CORE is obligated to file such reports or the rules and regulations promulgated under any of the foregoing, and prepare or cause to be pre-pared reports and statements for distribution to shareholders of CORE;
(g)    Prepare budgets and similar reports for use of the Board;
(h)    provide office space and office equipment, the use of accounting or computing equipment when required, and provide personnel necessary for the performance of the foregoing services; and
(i)    from time to time, or at any time requested by the Board, provide reports to the  Board as may be reasonably requested.EdgarFiling

EXHIBIT 10.1
 

EXECUTION VERSION
 
EMPLOYMENT AGREEMENT
 
This Agreement is entered into as of November8, 2016 (the “Effective Date”) by The Joint Corp., a Delaware corporation (“The Joint”), and JohnMeloun (“Executive”).
 
Background
 
The Joint desires to retain Executive’sservices in as Chief Financial Officer of The Joint, and Executive desires to provide those services to The Joint, on the termsof this Agreement.
 
Now, therefore, in consideration of theirmutual promises and intending to be legally bound, the parties agree as follows:
 
		1.	Definitions

 
Certain capitalized terms used in this Agreementare defined in the attached Exhibit A.
 
		2.	Employment

 
The Joint shall employ Executive on a full-timebasis as its Chief Financial Officer with such management duties and responsibilities as set forth in The Joint’s bylawsand as directed by the Chief Executive Officer of The Joint plus those initial objectives and responsibilities contained in ExhibitB, which are incorporated herein by this reference. Executive shall report to The Joint’s President and Chief ExecutiveOfficer.
 
		3.	Term

 
The initial term of this Agreement shallbegin on the Effective Date and end on December 31, 2017, subject to earlier termination as provided in Paragraph 11. Executiveshall be employed on an at-will basis and may terminate his employment and may be terminated from his employment at any time bythe Board with or without cause, subject to the severance payment and other provisions set forth in Paragraph 11, below.Not less than 60 days before the expiration of the Term, the Joint and Executive will enter into good faith negotiations regardingthe extension or mutually agreed renewal of the term.
 
		4.	Base Salary and Bonus Opportunity

 
(a)               The Joint shall pay Executive a base salary for Executive’s services in accordance with The Joint’s normalsemi-monthly payroll practices. Salary payments to Executive shall be reduced for applicablewithholding taxes and other payroll deductions required by law or authorized by Executive. Executive’s base salary shallbe: $185,000.00 per year.
 
(b)              During the Term, the Executive shall be eligible to receive an annual cash bonus, with a target of up to 40% of Executive’sbase salary, depending upon discretionary criteria established by the Company’s board of directors. This bonus shall be proratedfor service during calendar 2016. Bonus payments shall be determined after the completion of The Joint’s annual audit onor about March 1 of each year. The Joint shall pay any bonus payable to Executive no later than March 15 of the year after theend of the year for which the bonus is earned. 
 
    
     
    		5.	Stock Options and Stock Incentives

 
(a)               Executive shall be eligible to participate in any stock option plan that The Joint may adopt, pursuant to which, in thediscretion of The Joint’s board of directors (or of the committee of the board administering the plan for executive officersand senior management), Executive may be granted (i) options to purchase shares of The Joint common stock or (ii) restricted stockunits to be settled in shares of The Joint common stock or cash, or a combination of the two. The parties anticipate that (i) theexercise price of any option granted to Executive would be the closing price of The Joint common stock on the date of the optiongrant (the “grant date”) and that (ii) the option would vest over four years, provided that Executive remainsemployed by The Joint, with 25% of the option shares vesting on each of the first four anniversaries of the grant date. The partiesanticipate that any award of restricted stock units to Executive would vest in a similar manner
 
(b)              Executive shall receive a grant of stock options under The Joint’s stock plan as soon as practicable following theEffective Date, in the amount of 35,000 shares, on the terms described in subparagraph (a), above, such stock options to be qualifiedas “incentive stock options” pursuant to Section 422 of the Internal Revenue Code.
 
		6.	Employee Benefits.

 
(a)Executive shallbe entitled to participate in all health care plans and other employee benefits, including but not limited to a 401(k) plan thatThe Joint may provide to its employees generally (or to its executive officers and senior management) from time to time, in accordancewith the terms of participation of the plans and policies under which those benefits are provided. Executive shall be entitledto four weeks of vacation annually. Upon the termination of Executive’s employment, he shall be entitled to receive the cashvalue of any unused vacation and sick leave.
 
(b)The Joint shallreimburse Executive in accordance with the Joint’s policies and procedures for reasonable travel and related expenses incurredin connection with Executive’s performance of his duties pursuant to this Agreement.
 
		7.	Confidentiality Covenant

 
		(a)	During Executive’s employment by The Joint and continuing indefinitely following thetermination of Executive’s employment, regardless of the reason for or circumstances of Executive’s termination, Executiveshall treat all Confidential Information as secret and confidential (Executive’s “Confidentiality Covenant”).

 
		(b)	Executive shall not under any circumstances directly or indirectly (i) disclose any ConfidentialInformation to a third party (except as required in the normal course of Executive’s duties or by a court order or as expresslyauthorized by The Joint’s board of directors or its president and chief operating officer) or (ii) use any Confidential Informationfor Executive’s own account or the account of any other person or entity.

 
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    		(c)	All correspondence, files, records, documents, memoranda, reports and other items in whateverform or medium containing or reflecting Confidential Information, whether prepared by Executive or otherwise coming into Executive’spossession, shall remain The Joint’s exclusive property. Upon the termination of Executive’s employment, or at anyother time that The Joint requests, Executive shall promptly turn over to The Joint all written or tangible Confidential Informationthat may be in Executive’s possession or control (including all copies and summaries and notes derived from ConfidentialInformation).

 
		8.	Nonsolicitation and Noncompetition Covenant

 
		(a)	Regardless of the reason for or circumstances of Executive’s termination, during Executive’s employment by TheJoint and for a period of 12 months beginning on the date of termination of Executive’s employment and ending on the firstanniversary of that date (the “Covenant Period”), Executive shall not directly or indirectly do any of the following(Executive’s “Nonsolicitation and Noncompetition Covenant”):

 
		(1)	solicit for a Competing Business any franchisee, customer or account of The Joint during the 12-month period ending on thedate of termination of Executive’s employment; or

 
		(2)	solicit for employment or hire away any employee of The Joint who was a full-time or part-time employee of The Joint at anytime during the 12-month period ending on the date of termination of Executive’s employment, regardless of whether the employeeis or was employed on an “at will” basis or pursuant to a written agreement; or

 
		(3)	directly or indirectly engage in, accept employment with, provide services for, or have a financial or other interest in, anyCompeting Business.

 
		(b)	The duration of the Covenant Period shall be extended by a length of time equal to (i) the period during which Executive isin violation of Executive’s Nonsolicitation and Noncompetition Covenant and (ii) without duplication, any period during whichlitigation that The Joint institutes to enforce Executive’s Nonsolicitation and Noncompetition Covenant is pending (to theextent that Executive is in violation of Executive’s Nonsolicitation and Noncompetition Covenant during this period). Inno event, however, shall any such extension of the Covenant Period exceed 12 months.

 
		(c)	Executive’s Nonsolicitation and Noncompetition Covenant shall apply to Executive regardless of the capacity in whichExecutive is acting, that is, whether as an employee, sole proprietor, partner, joint venturer, limited liability company manageror member, shareholder, director, consultant, adviser, principal, agent, lender, seller, buyer, supplier, vendor or in any othercapacity or role.

 
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    		(d)	Executive’s Nonsolicitation and Noncompetition Covenant shall not be violated, however, (i) by reason of Executive’sownership of less than 1% of the outstanding shares of any publicly-traded corporation or other entity or (ii) if (A) Executive’sservices are provided to a subsidiary, division or branch of a Competing Business but the subsidiary, division or branch is notitself a Competing Business, or if (B) the services that Executive provides as an employee of or consultant to a Competing Businessare not the same or substantially similar in nature to the services that Executive provided to The Joint during the 12-month periodending on the date of termination of Executive’s employment.

 
		9.	Enforcement

 
		(a)	Executive agrees that Executive’s violation of his Confidentiality Covenant or his Nonsolicitation and NoncompetitionCovenant (Executive’s “Covenants”) would cause irreparable harm to The Joint for which money damagesalone would be both difficult to determine and inadequate to compensate The Joint for its injury. Executive accordingly agreesthat if Executive violates either of his Covenants, The Joint shall be entitled to obtain a temporary restraining order and a preliminaryand permanent injunction to prevent Executive’s continued violation, without the necessity of proving actual damages or postingany bond or other security.

 
		(b)	This right to injunctive relief shall be in addition to any other remedies to which The Joint may be entitled. If The Jointprevails in its lawsuit against Executive, Executive shall pay The Joint’s attorneys’ fees and court costs in prosecutingits lawsuit.

 
		(c)	Executive agrees that if the court in which The Joint seeks injunctive relief, or otherwise seeks to enforce any provisionof this Agreement, determines that either of Executive’s Covenants is too broad in scope or geographical area or too longin duration to be valid and enforceable, the scope, area or duration may be reduced to limits that the court considers reasonableand, as so reduced, the Executive’s Covenant may be enforced against Executive.

 
		10.	Inventions

 
Executive acknowledges that all Inventionsconceived of by Executive (either alone or with others) during Executive’s employment by The Joint shall be The Joint’ssole and exclusive property, and Executive irrevocably assigns to The Joint all of Executive’s rights, if any, in respectof any such Invention. This assignment shall not apply in respect of any Invention for which no equipment, supplies, facilitiesor Confidential Information of The Joint was used and which was developed entirely on Executive’s own time, unless (i) theInvention relates to The Joint’s business or its actual or demonstrably anticipated research or development or (ii) the Inventionresults from any work performed for The Joint by Executive.
 
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    		11.	Termination

 
		(a)	This Agreement shall terminate prior to its expiration under Paragraph 2 upon the occurrence of any one of the followingevents:

 
		(1)	upon Executive’s resignation as an employee, by notice to The Joint effective as of the date of Executive’s noticeor any later date that the notice may specify;

 
		(2)	upon The Joint’s termination of Executive’s employment for Cause, by notice to Executive effective as of the dateof The Joint’s notice;

 
		(3)	upon The Joint’s termination of Executive’s employment without Cause, by notice to Executive effective as of thedate of The Joint’s notice or any later date that the notice may specify; or

 
		(4)	upon Executive’s death.

 
		(b)	Upon the termination of Executive’s employment for any reason, The Joint shall pay Executive (or his estate) Executive’saccrued salary through the date of termination.

 
		(c)	Upon The Joint’s termination of Executive’s employment for Cause, or upon Employee’s termination of employment,The Joint shall have no obligation to continue to pay Executive any base salary payments or bonus payments (except as providedin Paragraph 11(b)).

 
		(d)	Upon The Joint’s termination of Executive’s employment without Cause, The Joint shall continue to pay Executivehis non-deferred base salary payments through the six-month anniversary of his termination (but The Joint shall have no obligationto pay Executive any bonus payments, and The Joint shall have no obligation to pay Executive any deferred salary amounts accruingin periods following the date of Executive’s termination).

 
		12.	Notices

 
Any notice or demand under this Agreementshall be effective only if it is in writing and is delivered in person or sent by certified or registered mail or overnight courierservice. Any notice to The Joint shall be delivered or sent to it at its principal offices, and any notice to Executive shall besent to him at his home address as shown on The Joint’s payroll records. A party may change his or its address for purposesof this Agreement by giving notice of the change to the other party in accordance with this Paragraph.
 
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    		13.	Assignment

 
Neither party shall assign, transfer, pledgeor encumber any interest in this Agreement or any part thereof without the express written consent of the other party. For theavoidance of doubt, in the event of a Change of Control, (i) Executive’s failure to consent to the assignment of this Agreementupon The Joint’s (or its successor’s) request shall be considered a termination of this Agreement by Executive in accordancewith Paragraph 11(a)(1) hereof; and (ii) The Joint’s (or its successor’s) failure to consent to the assignment of thisAgreement upon Executive’s request shall be considered a termination of this Agreement by The Joint (or its successor) withoutcause in accordance with Paragraph 11(a)(3) hereof.
 
		14.	Amendment

 
No amendment of this Agreement shall beeffective unless it is in writing, makes specific reference to this Agreement and is signed by both parties.
 
		15.	Governing Law

 
This Agreement shall be governed by thelaws of the State of Arizona without reference to the choice of law provisions.
 
		16.	Binding Effect.

 
This Agreement shall be binding on, andshall inure to the benefit of, the parties and their respective heirs, legal representatives, successors and assigns.
 
	 	17.	Cooperation.

 
Upon termination of Executive’s employmentfor any reason, other than for death, disability or Cause, Executive shall fully cooperate with and assist The Joint in the transitionof all significant areas of Executive’s responsibility for the conduct of The Joint’s business to the officers andemployees of The Joint who have been assigned by The Joint to assume such duties. In this regard, and without limiting Executive’sobligation to assist with the transition, Executive shall within one (1) week of the effective date of his termination, delivera transition memorandum to The Joint setting forth in reasonable detail, all material open matters with respect to which Executivehas been devoting his attention including the status of such matters, the anticipated timeline for completion of such uncompletedmatters, key persons within and outside of The Joint who are involved in such matters and their respective roles, and any otherinformation reasonably necessary or appropriate in order to effect the transition of responsibility for such matters from Executiveto the persons to whom they have been reassigned including copies of pertinent background correspondence and documents in Executive’spossession. Following termination of employment, Executive shall have no further responsibility for the advancement or resolutionof any open matters, but shall make himself reasonably available by telephone or timely email correspondence for up to sixty (60)days following the termination of employment to respond to questions about the facts and circumstances surrounding and applicableto the open matters. Failure to fully comply with this Paragraph shall be grounds for withholding post-termination severance paymentsdue to Executive, but only if Executive is given written notice that The Joint believes that he is not fully cooperating, whichnotice states the reasons therefore, and after Executive is given fifteen (15) days to cure such non-cooperation. If such non-cooperationis ultimately cured, then any post-termination severance payments which may have been withheld shall be promptly resumed includingall back payments.
 
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IN WITNESS WHEREOF, the parties have enteredthis Employment Agreement as of the Effective Date.
 
 
 
	 	The Joint Corp.
	 	 
	 	/s/ Peter Holt
	 	Peter Holt, President and Chief Executive Officer
	 	 
	 	 
	 	 
	 	 
	 	/s/ John Meloun
	 	John Meloun

 
 
 
 
    
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    Exhibit A
 
Definitions
 
 
 
Business means a person, proprietorship,partnership, joint venture, limited liability company, corporation, enterprise or other entity, whether proprietary or not-for-profitin nature.
 
Change of Control means an eventor the last of a series of related events by which:
 
(1)any Person directly or indirectlyacquires or otherwise becomes entitled to vote stock having 51% or more of the voting power in elections for Directors; or
 
(2)the Joint merges or consolidateswith another corporation, and holders of outstanding shares of the Joint’s common stock immediately prior to the merger orconsolidation do not own stock in the survivor of the merger or consolidation having more than 51% of the voting power in electionsfor Directors; or
 
(3)the Joint sells all or a substantialportion of the consolidated assets of the Joint and its subsidiaries, and the Joint does not own stock in the purchaser havingmore than 51% of the voting power in elections for Directors.
 
As used in this definition, a “Person”means any “person” as that term is used in sections 13(d) and 14(d) of the Exchange Act, together with all of thatperson’s “affiliates” and “associates” as those terms are defined in Rule 12b-2 under the ExchangeAct.
 
Competing Business means a Business(other than The Joint) that engages in the business of providing chiropractic services, directly or through related entities (includingbut not limited to franchise holders), from or at any location in a Restricted Area.
 
Causemeans any one or more of the following: (i) the commission of any crime involving dishonesty, breach of trust or physical harmto any person, (ii) willfully engaging in conduct that is in bad faith or injurious to The Joint or its business (including, forexample, fraud or embezzlement), (iii) gross misconduct, (iv) failure to comply with the significantprovisions of The Joint’s policies as specified in the Employee Handbook, or as otherwise adopted by the board of directorsand provided to Executive, applicable to Executive and then in effect, or (v) willful and material failure to perform or observe,or gross negligence in the performance of, any of the terms or provisions of this Agreement, including the failure of Executiveto follow the reasonable written directions of The Joint’s board of directors or President and Chief Executive Officer, andany breach of his agreements and covenants with The Joint as described in Paragraphs 7 or 8 hereof.
 
Confidential Information means anyinformation relating to The Joint or its business (regardless of who prepared the information), including but not limited to: tradesecrets; financial information and financial projections; marketing plans; vendor, franchisee and customer information; sales andrevenue information; product information; and technology and know-how.
 
The term “Confidential Information”does not include information that: (i) is or becomes generally available to the public other than as a result of a disclosure byExecutive in violation of this Agreement; or (ii) becomes available to Executive on a non-confidential basis from a source otherthan The Joint (provided, in case (ii), that the source of the information was not known to be bound by a confidentiality agreementor other contractual, legal or fiduciary obligation of confidentiality in respect of the information).
 
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Invention means any invention, discovery,concept, idea, method, technique, process, formula or computer program, whether or not patentable and whether or not reduced topractice.
 
Restricted Area means anywhere withina radius of 100 miles of any location from or at which The Joint directly, or indirectly through one or more subsidiaries or franchises,engaged in the business of providing chiropractic services during the 12-month period ending on the date of termination of Executive’semployment.
 
 
 

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    Exhibit B
 
Initial Objectivesand Responsibilities
 
General
 
Executive shall be responsible for the financial,and risk management operations of the company, including the development of a financial strategy, metrics tied to that strategy,and the ongoing development and monitoring of control systems designed to preserve company assets and report accurate financialresults.
 
Responsibilities/Reporting
 
Planning. Executive shall:
 
		·	Assist in formulating The Joint’s future direction and supporting tactical initiatives

 
		·	Develop financial and tax strategies

 
		·	Manage the capital request and budgeting processes

 
Operations. Executive shall:
 
		·	Participate in key decisions as a member of the executive management team

 
		·	Manage the accounting, tax, and treasury functions

 
		·	Oversee the financial operations of subsidiary companies, if any

 
		·	Oversee the company's transaction processing systems

 
		·	Implement operational best practices

 
		·	Oversee employee benefit plans

 
		·	Supervise acquisition due diligence and negotiate acquisitions

 
Financial Information. Executive shall:
 
		·	Oversee the issuance of financial information

 
		·	Review and approve all Form 8-K, 10-K, and 10-Q filings and other filings with the Securities and Exchange Commission

 
		·	Report financial results to the board of directors

 
		·	Oversee the preparation and timely filing of all local, state and federal tax returns

 
Risk Management. Executive shall:
 
		·	Understand and mitigate key elements of the company's risk profile

 
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    		·	Construct and monitor reliable control systems

 
		·	Maintain appropriate insurance coverage

 
		·	Ensure that the company complies with all legal and regulatory requirements

 
		·	Ensure that record keeping meets the requirements of auditors and government agencies

 
		·	Report risk issues to the audit committee of the board of directors

 
		·	Maintain relations with external auditors and investigate their findings and recommendations

 
Funding. Executive shall:
 
		·	Monitor cash balances and cash forecasts

 
		·	Arrange for debt and equity financing

 
		·	Invest funds

 
Third Parties. Executive shall:
 
		·	Participate in conference calls with the investment community

 
		·	Maintain banking relationships

 
		·	Represent the company with investment bankers and investors

 
		·	Select and engage consultants

 
		·	Serve as a key point of contact for external auditors

 
		·	Manage preparation and support of all external audits

 
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