Document:

tris_EX_10_5_Form Retention 2018

		
			Exhibit 10.5
		

		
			RETENTION AGREEMENT FOR __________
		

		
			 
		

		
			This Retention Agreement (hereinafter “Agreement”) is made effective as of the 27th Day of June, 2018 (the “Effective Date”), by and between Tri-State Generation and Transmission Association, Inc. (the “Employer”) and ________ (“Executive”). Both the Employer and Executive are hereinafter jointly referred to as “Parties” in this Agreement.  
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			WHEREAS, Executive is the Senior Vice President, ______________ of the Employer and an integral part of the Employer’s management; and
		

		
			
		

		
			WHEREAS, the Employer desires to provide Executive with certain benefits if Executive continues [his][her] employment with the Employer as its Senior Vice President,__________ (or in such other positions to which [he][she] may be appointed) for a certain period of time; and 
		

		
			 
		

		
			WHEREAS, the Employer and Executive have determined it is in their mutual best interests to enter into this Agreement;
		

		
			 
		

		
			NOW, THEREFORE, the parties hereby agree as follows:
		

		
			 
		

		
			AGREEMENT
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			RETENTION PERIOD.

		
			 
		

		
			Unless earlier terminated as hereinafter provided this Agreement shall commence on the Effective Date hereof and shall end on June 1, 2020 (the “Retention Period”). This Agreement shall not be considered an employment agreement and in no way guarantees Executive the right to continue employment of the Employer or its affiliates. Executive’s employment is considered employment at will, subject to Executive’s right to receive payments upon certain terminations of employment as provided below. 
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			DEFINITIONS.  For purposes of this Agreement, the following terms shall have the meaning specified below:

		
			 
		

		
			2.1“Beneficiary” or “Beneficiaries” – The person or persons entitled to receive any amounts owing to Executive under this Agreement upon Executive’s death. Executive may designate a person or persons as Executive’s Beneficiary under this Agreement. A Beneficiary designation shall be made on such form or forms as the Employer may provide, and the designation shall be effective only when filed with the Employer during Executive’s lifetime. A Beneficiary designation can be changed at any time by Executive by filing a new Beneficiary designation with the Employer. The revocation of a previous Beneficiary designation does not require the consent of any designated Beneficiary. If Executive has designated Executive’s spouse as Beneficiary, and 

		 

		

			1

		

		

			 

		

 

subsequent to this designation, Executive is legally divorced, the Beneficiary designation naming the former spouse shall be automatically revoked. The foregoing sentence shall not preclude the former spouse from being Executive’s designated Beneficiary pursuant to a Beneficiary designation made under this Agreement subsequent to the judgment of divorce. If no Beneficiary designation has been made or the designee has predeceased Executive, Executive is deemed to have designated the following as Beneficiaries, in the order named:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Executive’s spouse, and if [he][she] does not have a spouse,

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Executive’s estate.

		
			 
		

			
	
			
				 2.2
			

			
	
			
			“Board” or “Board of Directors” - The Board of Directors of Tri-State Generation and Transmission Association, Inc. or its successor.

		
			 
		

			
	
			
				 2.3
			

			
	
			
			“Cause” – The involuntary termination of Executive by the Employer for the following reasons shall constitute a termination for Cause:

		
			 
		

			
	
			
				 (a)
			If termination shall have been the result of an act or acts by the Executive which have been found in an applicable court of law to constitute a felony (other than traffic-related offenses);

		
			 
		

			
	
			
				 (b)
			If termination shall have been the result of an act or acts by the Executive which are in the good faith judgment of the Employer to be in violation of law or of the policies of the Employer and which result in material injury to the Employer; 

		
			 
		

			
	
			
				 (c)
			If termination shall have been the result of an act or acts of dishonesty by the Executive resulting or intended to result directly or indirectly in gain or personal enrichment to the Executive at the expense of the Employer; or

		
			 
		

			
	
			
				 (d)
			Upon the continued failure by the Executive for a period of not less than sixty (60) days substantially to perform the duties reasonably assigned to Executive given Executive’s training and experience (other than any such failure resulting from incapacity due to mental or physical illness not constituting a Disability, as defined herein), after a demand in writing for substantial performance of such duties is delivered by the Employer, which demand specifically identifies the manner in which the Employer believes that Executive has not substantially performed [his][her] duties, and such failure results in material injury to the Employer. 

		
			 
		

		
			2.4 “Code” – The Internal Revenue Code of 1986, as amended, or the corresponding
		

		
			provisions of any future federal tax law. 
		

		
			 
		

		
			

		 

		

			2

		

		

			 

		

 

		

		
			2.5 “Date of Termination” – The date specified in the Notice of Termination (which may be immediate) as the date upon which the Executive’s employment with the Employer is to terminate. 
		

		
			 
		

		
			2.6 “Disability” – Disability shall have the meaning ascribed to such term in the Employer’s long-term disability plan covering the Executive, or in the absence of such plan, a meaning consistent with Section 22(e)(3) of the Code.
		

		
			 
		

		
			2.7 “Employer” – Tri-State Generation and Transmission Association, Inc., a not-for-profit corporation, or any successor to its business and/or assets. 
		

		
			 
		

		
			2.8 “Notice of Termination” – A written notice from one party to the other party under Section 4.4 specifying the Date of Termination and which, if required by this Agreement, sets forth in reasonable detail the facts and circumstances relating to the basis for termination of Executive’s employment. 
		

		
			 
		

			
	
			
				 3.
			

			
	
			
			RETENTION PAYMENT

		
			 
		

		
			3.1 In General. In consideration of Executive’s agreement to continue employment with the Employer during the Retention Period, Executive is eligible to receive a retention payment of $________ (“Retention Payment”), if [he][she] remains actively employed by Employer until the last day of the Retention Period. The Retention Payment shall be paid in full in cash (less applicable withholding taxes) within thirty (30) days after the end of the Retention Period if [he][she] remains actively employed by Employer until the last day of the Retention Period. 
		

		
			 
		

			
	
			
				 3.2
			

			
	
			
			Termination By Employer For Cause Or By The Executive. If prior to June 1, 2020, Executive’s employment is terminated (i) by the employer as a result of a termination for Cause or (ii) by the Executive for any reason, the entire Retention Payment shall be forfeited, and no amount shall be payable to the Executive under this Agreement. 

		
			 
		

			
	
			
				 3.3
			

			
	
			
			Retention Payment Upon Involuntary Termination Without Cause. If Executive’s employment is involuntary terminated prior to June 1, 2020, by the Employer without Cause, such termination shall result in an immediate vesting of the full Retention Payment and the Retention Payment shall be paid within thirty (30) days of Executive’s Date of Termination (less applicable withholding taxes).  

		
			 
		

			
	
			
				 3.4
			

			
	
			
			Retention Payment Upon Termination As A Result Of Death Or Disability. If Executive’s employment is terminated as a result of Executive’s death or Disability prior to June 1, 2020, Executive shall be entitled to receive a portion of the Retention Payment determined by multiplying the Retention Payment by a fraction, the numerator of which is the number of full months that have elapsed since June 1, 2018, as of [his][her] Date of Termination as a result of death or Disability and the denominator of which is 24. The portion of the Retention Payment payable under this Section 3.4 shall be paid within thirty (30) days of Executive’s Date of Termination (less applicable withholding taxes). 

		
			

		 

		

			3

		

		

			 

		

 

		

		
			 
		

			
	
			
				 3.5
			

			
	
			
			Release of Claims. To be entitled to any of the Retention Payments described above in this Section 3, Executive (or [his][her] heirs), as the case may be, shall execute a release of claims in form satisfactory to the Employer. No payments shall be made under this Section 3 until such release has been properly executed and delivered to the Employer and until the expiration of the revocation period, if any, provided under the release. If the release is not properly executed by Executive and delivered to the Employer, the Employer’s obligations under this Section 3 will terminate. 

		
			 
		

			
	
			
				 3.6
			

			
	
			
			Section 409A. The Retention Payment paid pursuant to this Section 3 is intended to constitute a payment pursuant to the “short-term deferral” exception under Code Section 409A as set forth in Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent applicable, this Agreement shall at all times be operated in accordance with the requirements of 409A of the Code, including any applicable exceptions. The Employer shall have authority to take action, or refrain from taking any action, with respect to the payments and benefits under this Agreement that is reasonably necessary to comply with Section 409A. To the extent applicable, the Employer shall have the authority to delay the commencement of all or a part of the payments to Executive under this Section 3 if Executive is a “key employee” of the Employer (as determined by the Employer in accordance with procedures established by the Employer that are consistent with Section 409A) to a date which is six months after the date of Executive’s termination of employment (and on such date the payments that would otherwise have been made during six-month period shall be made) to the extent (but only to the extent) such delay is required under the provisions of Section 409A to avoid imposition of additional income and other taxes.

		
			 
		

			
	
			
				 4.
			

			
	
			
			MISCELLANEOUS

		
			 
		

		
			4.1 Confidentiality of Agreement. Executive agrees that [he][she] is required to keep the terms, amount, and fact of this Agreement strictly confidential, and that, except as required by law or authorized in writing by the Employer, [he][she] will not disclose any information concerning this Agreement to anyone except [his][her] spouse or tax advisor. Executive understands that any such disclosure of this Agreement will constitute a breach of the Agreement resulting in the forfeiture of [his][her] rights to any Retention Payment.
		

		
			 
		

			
	
			
				 4.2
			

			
	
			
			Contract Non-Assignable.  The parties acknowledge that this Agreement has been entered into due to, among other things, the special skills and knowledge of Executive, and agree that this Agreement may not be assigned or transferred by Executive. 

		
			 
		

			
	
			
				 4.3
			

			
	
			
			Successors; Binding Agreement. In addition to any obligations imposed by law upon any successor to the Employer, the Employer will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Employer, to expressly assume 

		 

		

			4

		

		

			 

		

 

	and agree to perform this Agreement, in the same manner and to the same extent that the Employer would be required to perform it if no such succession had taken place. 

		
			 
		

			
	
			
				 4.4
			

			
	
			
			Notices. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered, or seven days after mailing if mailed first class, certified mail, postage prepaid, addressed as follows:

		
			 
		

		
			If to the Employer:    Tri-State Generation and Transmission Association, Inc.
		

		
			     Attention: President and Chairman of the Board of Directors
		

		
			 
		

		
			If to Executive:     To [his][her] last known address on file with the Employer:
		

		
			 
		

		
			Any party may change the address to which notices, requests, demands and other communications shall be delivered or mailed by giving notice thereof to the other party in the same manner provided herein. 
		

		
			 
		

			
	
			
				 4.5
			

			
	
			
			Provisions Severable. If any provision or covenant, or any part thereof, of this Agreement should be held by any court to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, of this Agreement, all of which shall remain in full force and effect. 

		
			 
		

			
	
			
				 4.6
			

			
	
			
			Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement or the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by the party making the waiver. 

		
			 
		

			
	
			
				 4.7
			

			
	
			
			Amendments and Modifications. This Agreement may be amended or modified only by a writing signed by both parties hereto, which makes specific reference to this Agreement.

		
			 
		

			
	
			
				 4.8
			

			
	
			
			Governing Law. The validity and effect of this Agreement shall be governed by and be construed and enforced in accordance with the laws of the State of Colorado. 

		
			 
		

			
	
			
				 4.9
			

			
	
			
			Benefits Payable From General Assets. The benefits payable under this Agreement shall be paid by the Employer out of its general assets. To the extent Executive acquired the right to receive a payment under this Agreement, such right shall be no greater than that of an unsecured general creditor of the Employer. 

		
			 
		

		
			

		 

		

			5

		

		

			 

		

 

		

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

		
			 
		

		
			EXECUTIVE
		

		
			 
		

		
			___________________________________ 
		

		
			
		

		
			 
		

		
			 
		

		
			TRI-STATE GENERATION AND 
		

		
			TRANSMISSION ASSOCIATION, INC.
		

		
			 
		

		
			 
		

		
			 
		

		
			By: _____________________________ 
		

		
			       Micheal McInnes
		

		
			       Chief Executive Officer
		

		
			 
		

		 

		

			6Exhibit 10.1

 

RESTRICTED STOCK AGREEMENT

This Restricted Stock Agreement (this “Agreement”) entered into as of June 27, 2018, sets forth the terms and conditions of an award (this “Award”) of restricted stock granted by VerifyMe, Inc., a Nevada corporation (the “Company”), to ________________ (the “Recipient”).

WHEREAS, the Company is of the opinion that its interests will be advanced by granting the Recipient a proprietary interest in it, thus providing the Recipient with a more direct stake in its welfare and creating a closer relationship between the Recipient’s interests and those of the Company.

NOW, THEREFORE, in consideration of services rendered to the Company by the Recipient and other good and valuable consideration, receipt of which is acknowledged, the Company hereby grants this award to the Recipient on the terms expressed herein.

 

               1.           Award.  As of the date of this Agreement, the Recipient has been granted __________ shares of restricted common stock (“Restricted Stock”) for being a ___________________; on the terms and conditions herein set forth.  All certificates issued shall contain an appropriate restrictive legend.

 

2.           Vesting.  The Restricted Stock shall vest quarterly over a one-year period from the date of this Agreement, subject to continued services as a _________________ of the Company on each applicable vesting date.  In lieu of fractional vesting, the shares shall be rounded up each time until fractional shares are eliminated.  The Restricted Stock shall be unregistered unless the Company voluntarily files a registration statement covering such shares with the Securities and Exchange Commission

3.          Forfeiture.  Notwithstanding any other provision of this Agreement, at the option of the Board of Directors or the Compensation Committee, all shares of Restricted Stock subject to this Agreement shall be immediately forfeited in the event of the Recipient:

(a)          Purchasing or selling securities of the Company without written authorization in accordance with the Company’s inside information guidelines then in effect;

(b)          Breaching any duty of confidentiality including that required by the Company’s inside information guidelines then in effect;

(c)          Competing with the Company;

(d)          Recruiting Company personnel after ceasing to be a director;

                              (e ).      The Recipient acts in a disloyal manner to the Company; or

                              (f).        The Recipient has acted against the interests of the Company.

 

 

Notwithstanding any other provision of this Agreement, if the Recipient ceases to act in the capacity as described in Section 2 prior to the date that all of the shares of Restricted Stock are vested, the Recipient shall automatically forfeit to the Company all unvested shares.  Shares that are not vested are referred to herein as Unvested Shares.

4.          Profits on the Sale of Certain Shares; Cancellation.  If any of the events specified in Section 3 of this Agreement occur within one year from the last day as service as a director (the “Termination Date”), all profits earned from the Recipient’s sale of the Company’s Restricted Stock during the two-year period commencing one year prior to the Termination Date shall be forfeited and forthwith paid by the Recipient to the Company.  Further, in such event, the Company may at its option cancel the shares of Restricted Stock granted under this Agreement.  The Company’s rights under this Section 5 do not lapse one year from the Termination Date but are a contract right subject to any appropriate statutory limitation period.

5.          Stop-Transfer Notices. The Recipient agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate stop transfer instructions to its stock transfer agent.

 

6.          Refusal to Transfer.  The Company shall not be required to transfer on its books any of the Restricted Stock that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or to treat as owner of such Restricted Stock or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Restricted Stock shall have been so transferred.

 

7.          Tax Withholding.  The Recipient acknowledges and agrees that the Company may require the Recipient to pay, or may withhold from sums owed by the Company to the Recipient, any amount that the Company, in its sole discretion, deems necessary to comply with any federal, state or local withholding requirements for income tax purposes.  The failure to pay the required taxes to the Company within 10 day after written request shall permit the Company to decline to remove the restrictive legend on the stock certificate.

 

8.          Section 83(b) Election.  The Recipient hereby acknowledges that he or she may file a Section 83(b) election with the Internal Revenue Service within 30 days of the date hereof, electing thereby to be taxed on the fair market value of the Restricted Stock as of the date hereof. Absent such an election, ordinary income will be measured and recognized by the Recipient as the shares vest (that is, each year on the anniversary of the date hereof).  If the Recipient makes a Section 83(b) election and later forfeits any unvested Restricted Stock upon termination of service to the Company, the Recipient could suffer adverse tax consequences.  The Recipient is strongly encouraged to seek the advice of his or her own tax consultants in connection with the grant of the Restricted Stock and the advisability of filing of an election under Section 83(b) of the Internal Revenue Code.

 

2

 

The Recipient acknowledges that it is his or her sole responsibility and not the Company’s responsibility to file the election under Section 83(b), even if  the Recipient requests the Company or its representative to make this filing on the recipient’s behalf.

 

9.          No Guarantee of Continued Service.  The Recipient acknowledges and agrees that the Restricted Stock shall vest only through continued service to the Company as a director or, through a Change of Control of the Company as defined in Section 9. The Recipient further acknowledges and agrees that neither this Agreement nor the vesting schedule set forth herein constitute an express or implied promise of continued service as a director of the Company and shall not interfere with the Company’s shareholders’ or the Recipient’s right to terminate the Recipient’s relationship with the Company at any time, with or without cause. In the event of a Change of Control, as defined in Section 9, all Unvested Shares will immediately vest as of one minute prior to the Change of Control.

Change of Control means and includes each of the following:

                                                (1) A sale, transfer, or other disposition by the Company through a single transaction or a series of transactions of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities to any Person who is not an Affiliate and a replacement of the majority of the members of the Board under Clause 4 below. For purposes of this definition, the term “Person” shall mean and include any individual, partnership, joint venture, association, trust, corporation, or other entity (including a “group” as referred to in Section 13(d)(3) of the Securities Exchange Act of 1934). For purposes of this definition, the term “Affiliate” shall mean any Person who is an executive officer, director or  more than 10% shareholder of the Company or who, directly or indirectly, individually or through any person or entity, has the power to control the Company;

                               

                                                (2) A sale, transfer, or other disposition through a single transaction or a series of related transactions of all or substantially all of the assets of the Company;

                               

                                                 (3) Any consolidation or merger of the Company, unless immediately after the consolidation or merger the holders of the common stock of the Company immediately prior to the consolidation or merger are the beneficial owners of securities of the surviving corporation representing at least 50% of the combined voting power of the surviving corporation’s then outstanding securities; or

                               

                                                 (4) Within a 12 month period, individuals who, as of the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the beginning of such period whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director.

 

3

10.          Notices and Addresses.  All notices, offers, acceptance and any other acts under this  Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar overnight next business day delivery, or by email delivery followed by overnight next day delivery, as follows:

		The Recipient:          		To the Recipient at the address on the signature 

 page of this Agreement
	  	 	  	 
	  	The Company:	  	VerifyMe, Inc.

Clinton Square

75 S. Clinton Ave., Suite 510

Rochester, NY 14604

Attention: Patrick White

Email: patrick@verify.com

	  	 	  	 
	  	with a copy to:	  	Michael D. Harris, Esq.

Nason, Yeager, Gerson, White & Lioce, P.A.

3001 PGA Boulevard, Suite 305

Palm Beach Gardens, FL  33410

Email: mharris@nasonyeager.com

 

or to such other address as either of them, by notice to the other may designate from time to time.    Time shall be counted to, or from, as the case may be, the delivery in person or by mailing.

11.          Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual or facsimile signature.

12.          Attorney’s Fees.  In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding that is commenced to enforce the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and expenses (including such fees and costs on appeal).

13.          Severability.  If any term or condition of this Agreement shall be invalid or unenforceable to any extent or in any application, then the remainder of this Agreement, and such term or condition except to such extent or in such application, shall not be affected hereby and each and every term and condition of this Agreement shall be valid and enforced to the fullest extent and in the broadest application permitted by law.

14.          Entire Agreement.  This Agreement represents the entire agreement and understanding between the parties and supersedes all prior negotiations, understandings, representations (if any), and agreements made by and between the parties.  Each party specifically acknowledges, represents and warrants that they have not been induced to sign this Agreement.

 

4

 

                15.           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

 

                16.           Headings.  The headings in this Agreement are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof.

 

 

[Signature Page To Follow]

 

5

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed and delivered as of the date aforesaid.

 

 

	
 

	VERIFYME, INC.
	
 

	
 

	
 

	
 

	
 

	
 

	 	
By:

	 
	
 

	
 

	
Patrick White

	
 

	
 

	Chief Executive Officer
	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RECIPIENT

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	 
	 	 	 
	
 

	
Address of the Recipient:

	
 

	
 

	
 

	
 

	
 

	
 

	 
	
 

	
 

	
 

	 
	
 

	
 

	
 

 

	
 

	
Email address:

	
 

	
 

 

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]