Document:

domi_ex1012.htm

Exhibit 10.12

 

FORM OF INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”) is made as of __________ by and between Digi Outdoor Media, Inc., a Nevada corporation (the “Company”) and _________________ (“Indemnitee”).

 

RECITALS

 

A.           Indemnitee is an officer or director of the Company and in such capacity is performing valuable services for the Company.

 

B.           The Company and Indemnitee recognize the difficulty in obtaining directors’ and officers’ liability insurance, the significant cost of such insurance and the general reduction in the coverage of such insurance.

 

C.           The Company and Indemnitee further recognize the substantial increase in litigation subjecting officers and directors to expensive litigation risks at the same time that such liability insurance has been severely limited.

 

D.           As of the date hereof, the Company has provisions for indemnification of its directors and officers in its Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) and Bylaws (the “Bylaws”) which provide for indemnification of the Company’s directors and officers to the fullest extent permitted by the Nevada Business Corporation Act (the “Statute”).

 

E.           The Articles of Incorporation and the Statute specifically provide that they are not exclusive, and thereby contemplate that contracts may be entered into between the Company and the members of its Board of Directors and its officers with respect to indemnification of such directors and officers.

 

F.           In order to induce Indemnitee to continue to serve as an officer and/or director, as the case may be, of the Company, the Company has agreed to enter into this Agreement with Indemnitee.

 

AGREEMENT

 

In consideration of the recitals above, the mutual covenants and agreements herein contained, and Indemnitee’s continued service as an officer and/or director, as the case may be, of the Company after the date hereof, the parties to this Agreement agree as follows:

 

1. Indemnity of Indemnitee

 

(a) Scope.  The Company agrees to hold harmless and indemnify Indemnitee to the full extent permitted by law, notwithstanding that such indemnification is not specifically authorized by this Agreement, the Company’s Articles of Incorporation, the Bylaws, the Statute or otherwise.  In the event of any change, after the date of this Agreement, in any applicable law, statute or rule regarding the right of a Washington corporation to indemnify a member of its board of directors or an officer, such changes, to the extent that they would expand Indemnitee’s rights hereunder, shall be within the purview of Indemnitee’s rights and the Company’s obligations hereunder, and, to the extent that they would narrow Indemnitee’s rights hereunder, shall be excluded from this Agreement; provided, however, that any change that is required by applicable laws, statutes or rules to be applied to this Agreement shall be so applied regardless of whether the effect of such change is to narrow Indemnitee’s rights hereunder.

 

  

  

  

 

(b) Nonexclusivity.  The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Articles of Incorporation, the Bylaws, any agreement, any vote of shareholders or disinterested directors, the Statute, or otherwise, whether as to action in Indemnitee’s official capacity or otherwise.

 

(c) Additional Indemnity.  If Indemnitee was or is made a party, or is threatened to be made a party, to or is otherwise involved (including, without limitation, as a witness) in any Proceeding (as defined below), the Company shall hold harmless and indemnify Indemnitee from and against any and all losses, claims, damages, liabilities, expenses (including attorneys’ fees), judgments, fines, ERISA excise taxes or penalties, amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful (collectively, “Damages”). The termination of any action, arbitration action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

(d) Definition of Proceeding.  For purposes of this Agreement, “Proceeding” shall mean any actual, pending or threatened action, suit, claim or proceeding, whether civil, criminal, administrative or investigative and whether formal or informal, in which Indemnitee is, was or becomes involved by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company or that, being or having been such a director, officer, employee or agent, Indemnitee is or was serving at the request of the Company as a director, officer, employee, trustee or agent of another corporation or of a partnership, joint venture, trust or other enterprise (collectively a “Related Company”), including service with respect to an employee benefit plan, whether the basis of such proceeding is alleged action (or inaction) by Indemnitee in an official capacity as a director, officer, employee, trustee or agent or in any other capacity while serving as a director, officer, employee, trustee or agent; provided, however, that, except with respect to an action to enforce the provisions of this Agreement, Proceeding shall not include any action, suit, claim or proceeding instituted by or at the direction of Indemnitee unless such action, suit, claim or proceeding is or was authorized by the Company’s Board of Directors.

 

(e) Determination of Entitlement.  In the event that a determination of Indemnitee’s entitlement to indemnification is required pursuant to Section 23B.08.550 of the Statute or any successor thereto or pursuant to other applicable law, the appropriate decision-maker shall make such determination; provided, however, that Indemnitee shall initially be presumed in all cases to be entitled to indemnification, that Indemnitee may establish a conclusive presumption of any fact necessary to such a determination by delivering to the Company a declaration made under penalty of perjury that such fact is true and that, unless the Company shall deliver to Indemnitee written notice of a determination that Indemnitee is not entitled to indemnification within twenty (20) days of the Company’s receipt of Indemnitee’s initial written request for indemnification, such determination shall conclusively be deemed to have been made in favor of the Company’s provision of indemnification and Company hereby agrees not to assert otherwise.

 

  

-2-

  

 

(f) Survival.  The indemnification provided under this Agreement shall apply to any and all Proceedings, notwithstanding that Indemnitee has ceased to be a director, officer, employee, trustee or agent of the Company or a Related Company.

 

2. Expense Advances

 

(a) Generally.  The right to indemnification of Damages conferred by Section 1 shall include the right to have the Company pay Indemnitee’s expenses in any Proceeding as such expenses are incurred and in advance of such Proceeding’s final disposition (such right is referred to hereinafter as an “Expense Advance”).  Any Expense Advance to be made under this Agreement shall be paid by the Company to Indemnitee within twenty (20) days following delivery of a written request therefor by Indemnitee to the Company.

 

(b) Conditions to Expense Advance.  The Company’s obligation to provide an Expense Advance is subject to the following conditions:

 

(i) Undertaking.  If the Proceeding arose in connection with Indemnitee’s service as a director or officer of the Company (and not in any other capacity in which Indemnitee rendered service, including service to any Related Company), then Indemnitee or his or her representative shall have executed and delivered to the Company an undertaking, which need not be secured and shall be accepted without reference to Indemnitee’s financial ability to make repayment, by or on behalf of Indemnitee to repay all Expense Advances if and to the extent that it shall ultimately be determined by a final, unappealable decision rendered by a court having jurisdiction over the parties and the question that Indemnitee is not entitled to be indemnified for such Expense Advance under this Agreement or otherwise.

 

(ii) Cooperation.  Indemnitee shall give the Company such information and cooperation as it may reasonably request and as shall be within Indemnitee’s power.

 

(iii) Affirmation.  Indemnitee shall furnish, upon request by the Company and if required under applicable law, a written affirmation of Indemnitee’s good faith belief that any applicable standards of conduct have been met by Indemnitee.

 

3. Procedures for Enforcement

 

(a) Enforcement.  In the event that a claim for indemnity, an Expense Advance or otherwise is made hereunder and is not paid in full within sixty (60) days (twenty (20) days for an Expense Advance) after written notice of such claim is delivered to the Company, Indemnitee may, but need not, at any time thereafter bring suit against the Company to recover the unpaid amount of the claim (an “Enforcement Action”).

 

(b) Presumptions in Enforcement Action.  In any Enforcement Action the following presumptions (and limitation on presumptions) shall apply:

 

(i) The Company shall conclusively be presumed to have entered into this Agreement and assumed the obligations imposed on it hereunder in order to induce Indemnitee to continue as an officer and/or director, as the case may be, of the Company;

 

(ii) Neither (A) the failure of the Company (including the Company’s Board of Directors, independent or special legal counsel or the Company’s shareholders) to have made a determination prior to the commencement of the Enforcement Action that indemnification of Indemnitee is proper in the circumstances nor (B) an actual determination by the Company, its Board of Directors, independent or special legal counsel or shareholders that Indemnitee is not entitled to indemnification shall be a defense to the Enforcement Action or create a presumption that Indemnitee is not entitled to indemnification hereunder; and

 

  

-3-

  

 

(iii) If Indemnitee is or was serving as a director, officer, employee, trustee or agent of a corporation of which a majority of the shares entitled to vote in the election of its directors is held by the Company or in an executive or management capacity in a partnership, joint venture, trust or other enterprise of which the Company or a wholly owned subsidiary of the Company is a general partner or has a majority ownership, then such corporation, partnership, joint venture, trust or enterprise shall conclusively be deemed a Related Company and Indemnitee shall conclusively be deemed to be serving such Related Company at the request of the Company.

 

(c) Attorneys’ Fees and Expenses for Enforcement Action.  In the event Indemnitee is required to bring an Enforcement Action, the Company shall indemnify and hold harmless Indemnitee against all of Indemnitee’s fees and expenses in bringing and pursuing the Enforcement Action (including attorneys’ fees at any stage, including on appeal); provided, however, that the Company shall not be required to provide such indemnity for such attorneys’ fees or expenses if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such Enforcement Action was not made in good faith or was frivolous.

 

4. Limitations on Indemnity; Mutual Acknowledgment

 

(a) Limitation on Indemnity.  No indemnity pursuant to this Agreement shall be provided by the Company:

 

(i) To indemnify or advance expenses to any Indemnitee with respect to Proceedings initiated or brought voluntarily by such Indemnitee and not by way of defense, except (i) with respect to Proceedings to establish or enforce a right to indemnification under this Agreement or any other agreement or insurance policy or under the Company’s Articles of Incorporation or Bylaws now or hereafter in effect relating to any event which may be properly indemnified under this Agreement, (ii) in specific cases if the Board of Directors has approved the initiation or bringing of such Proceeding, or (iii) as otherwise required under Washington statute or law, regardless of whether such Indemnitee ultimately is determined to be entitled to such indemnification, advance expense payment or insurance recovery, as the case may be; or

 

(ii) To indemnify any Indemnitee for expenses and the payment of profits arising from the purchase and sale by such Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute; or

 

(iii) To indemnify an Indemnitee if a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful; or

 

(iv) To indemnify an Indemnitee if a court having jurisdiction in the matter shall determine in a final judicial determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that the Indemnitee has committed fraud or intentional malfeasance with respect to the Company in relation to the facts and circumstances underlying the Proceeding; or

 

(v) Lack of Good Faith. To indemnify any Indemnitee for any expenses incurred by such Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction in the matter determines in a final determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that each one of the material assertions made by the Indemnitee in such proceeding was made in bad faith or was frivolous.

 

  

-4-

  

 

(b) Mutual Acknowledgment.  The Company and Indemnitee acknowledge that, in certain instances, federal law or public policy may override applicable state law and prohibit the Company from indemnifying Indemnitee under this Agreement or otherwise.  For example, the Company and Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the position that indemnification is not permissible for liabilities arising under certain federal securities laws, and federal legislation prohibits indemnification for certain ERISA violations.  Furthermore, Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.

 

(c) Contribution in the Event of Joint Liability.  (i) To the fullest extent permissible under applicable law, if the indemnification and hold harmless rights provided for in this Agreement are unavailable to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for expenses, in connection with any action, arbitration action, suit or proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.  (ii) The Company shall not enter into any settlement of any action, arbitration action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, arbitration action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee. (iii) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee.

 

5. Notification and Defense of Claim

 

(a) Notification.  Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission so to notify the Company will not relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and only to the extent that such omission can be shown to have prejudiced the Company’s ability to defend the Proceeding.

 

(b) Defense of Claim.  With respect to any such Proceeding as to which Indemnitee notifies the Company of the commencement thereof:

 

(i) The Company may participate therein at its own expense;

 

(ii) The Company, jointly with any other indemnifying party similarly notified, may assume the defense thereof, with counsel satisfactory to Indemnitee.  After notice from the Company to Indemnitee of its election so to assume the defense thereof, the Company shall not be liable to Indemnitee under this Agreement for any legal or other expenses (other than reasonable costs of investigation) subsequently incurred by Indemnitee in connection with the defense thereof unless (A) the employment of counsel by Indemnitee has been authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such action, or (C) the Company shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel shall be at the expense of the Company.  The Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Company or as to which Indemnitee shall have made the conclusion provided for in (B) above;

 

  

-5-

  

 

(iii) The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without its written consent;

 

(iv) The Company shall not settle any action or claim in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent; and

 

(v) Neither the Company nor Indemnitee will unreasonably withhold its, his or her consent to any proposed settlement.

 

(c) Notice to Insurers.  If, at the time of the receipt of a notice of a claim pursuant to Section 5(a) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

6. Severability.  Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law.  The Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.  The provisions of this Agreement shall be severable, as provided in this Section 6.  If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

 

7. No Employment Rights.  Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment.

 

8. Officer and Director Liability Insurance.  Unless otherwise provided in any agreement to which the Company may enter into with it shareholders from time to time, the Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement.  Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage.  In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee.  Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a parent or subsidiary of the Company.

 

  

-6-

  

 

9. Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred in the investigation, defense, appeal or settlement of any civil or criminal action, suit or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled.

 

10. Miscellaneous

 

(a) Governing Law.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Washington, without giving effect to principles of conflict of law.

 

(b) Entire Agreement, Enforcement of Rights.  This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement.  The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

 

(c) Construction.  This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

 

(d) Notices.  Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by telegram or forty-eight (48) hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice.

 

(e) Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

 

(f) Successors and Assigns.  This Agreement shall be binding upon Indemnitee and upon the Company, its successors and assigns, and shall inure to the benefit of Indemnitee, Indemnitee’s heirs, personal representatives and assigns and to the benefit of the Company, its successors and assigns.

 

(g) Subrogation.  In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company to effectively bring suit to enforce such rights.

 

 

[Signature page follows]

 

  

-7-

  

 

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

 

Digi Outdoor Media, Inc.

 

 

By: ________________________________________________

                                                                                      35332 S.E. Center Street

                                                                                      Snoqualmie, WA 98065

 

 

AGREED TO AND ACCEPTED:

 

 

_____________________________________

(Signature)

Address:domi_ex1015.htm

Exhibit 10.13

 

 

EMPLOYMENT AGREEMENT

 

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of January 31, 2015, by and between Digi Outdoor Media, Inc., a Nevada corporation (the “Company”), whose business address is located at 35332 S.E. Center Street, Snoqualmie, WA 98065, and Don MacCord, an individual (“Employee”), whose address is _________________________________________.

WHEREAS, the Company desires to retain the services of Employee, and Employee desires to be employed by the Company, on the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the premises, mutual covenants and agreements set forth herein, the Company and Employee, intending to be legally bound, hereby agree as follows:

 

1.           Employment.  As of the Effective Date (as defined in Section 2 below), the Company agrees to employ Employee as the Company’s President and Chief Executive Officer (the “Position”), and Employee accepts such employment and agrees to perform services for the Company, subject always to the direction of the Board of Directors of the Company (the “Board”) or such officer of the Company (e.g., Chief Executive Officer or President) that the Board may assign from time to time, for the period and upon the other terms and conditions set forth in this Agreement.

 

2.           Term.  The term of Employee’s employment hereunder shall commence effective on January 1, 2015 (the “Effective Date”), and shall continue for a period of one (1) year thereafter (the “Initial Term”).  The term of this Agreement may be extended or renewed for successive one-year periods (each a “Renewal Term”) following the Initial Term upon the mutual agreement of the Company and Employee.  Notwithstanding the foregoing provision, this Agreement may be terminated by either party prior to the expiration of the Initial Term or any Renewal Term in accordance with the provisions of Section 5 below.  Section 5 shall govern the amount of any compensation to be paid to Employee upon termination of this Agreement and Employee’s employment.

3.           Position and Duties.

 

3.1.           Service with the Company.  During the Initial and any Renewal Term of this Agreement, Employee agrees to perform such duties as the Company’s Board shall reasonably assign to him from time to time consistent with and in accordance with his Position.  Employee shall devote his full-time efforts to his duties for the Company.

 

3.2. Management Policies.                                             Employee hereby agrees that he shall abide by all rules, regulations, directives and policies which, at any time and from time to time, are established in respect of the conduct of the employees of the Company generally and which have been communicated to Employee.

 

  

  

  

 

4.           Compensation and Benefits.

 

4.1.           Base Salary.  As compensation for all services to be rendered by Employee under this Agreement, the Company shall pay to Employee beginning on the Effective Date, an annual salary (“Base Salary”) of One Hundred Eighty Thousand Dollars (USD $180,000), less all required deductions and withholdings.  The Company shall pay the Base Salary to the Employee in regular installments on the Company’s regularly scheduled paydays in accordance with the Company’s normal payroll procedures and policies, but in no event shall such salary be paid less frequently than monthly.

 

4.2.           Health Insurance Benefits.  Employee shall be entitled to receive health insurance and dental benefits to the extent eligible under such insurance plans as are maintained by the Company for the benefit of all its employees, and coverage under such plans shall be the same as that provided to all other employees of the Company.  Employee’s participation in any such plan or program shall be subject to the provisions, rules, and regulations applicable thereto.

 

4.3.           Business Expenses.  The Company will reimburse Employee for all reasonable and necessary out-of-pocket expenses incurred by him in connection with the performance of his duties under this Agreement in accordance with the Company’s expense reimbursement policy, subject to Employee’s submission of all required or appropriate documentation evidencing such expenses.

 

4.4           Vacation Entitlement.  Employee shall earn usual and customary paid vacation each year commensurate with similarly situated employees of the Company.  Such vacation will accrue on a monthly basis and any accrued vacation shall only be used after the first six (6) months of employment.  Employee hereby agrees that:

 

(a)           Such vacation shall be reasonably scheduled in advance by mutual agreement of the Company and Employee, and shall be taken at such time or times so as to minimize the disruption, if any, to the operation of the business, affairs and operations of the Company; and

 

(b)           Any unused vacation time may be carried forward and used in any subsequent year up to a maximum of ten (10) vacation days.

 

5.           Termination.

 

5.1.           Disability.  Employee’s employment and this Agreement shall terminate upon Employee becoming totally or permanently disabled for a period of ninety (90) days or more during any twelve-month period.  For purposes of this Agreement, the term “totally or permanently disabled” or “total or permanent disability” means Employee’s inability on account of illness, accident or other incapacity, whether or not job-related, to fully and effectively perform his assigned duties under this Agreement.  If disability is disputed, such dispute will be conclusively resolved by a majority of three medical experts, one selected by the Company, one selected by Employee, the third to be selected by the first two.

 

  

- 2 -

  

 

5.2.           Death of Employee.  Employee’s employment and this Agreement shall terminate immediately upon the death of Employee.

 

5.3.           Termination for Cause.  The Company may terminate Employee’s employment and this Agreement at any time for “Cause” (as hereinafter defined) immediately upon written notice to Employee.  As used herein, the term “Cause” shall mean that Employee shall have: (i) been convicted of or pleads nolo contendre to a felony or gross misdemeanor, controlled substances, securities law violations, antitrust laws, tax or financial reporting, fraud, embezzlement or theft; or (ii) breached any covenant or obligation under this Agreement, unless cured by Employee within ten (10) days following written notice thereof to Employee.  “Cause” shall not mean any legal act or omission believed by the Employee in good faith to have been in, or not opposed to, the best interest of the Company (without intent to personally gain, directly or indirectly, a profit or advantage to which the Employee was not legally entitled).

 

5.4.           Resignation.  Employee may end his employment and terminate this Agreement at any time, subject to giving not less than thirty (30) days advance written notice of said resignation or termination to the Board of Directors of the Company.

 

6.           Compensation upon Termination of Employee’s Employment.

 

6.1.           In the event that Employee’s employment is terminated pursuant to Section 5.1 (Disability), Employee shall be entitled to receive his salary through the 90th day following Employee’s last day of active employment, but no other compensation of any kind or amount shall be due to Employee.

 

6.2           In the event that Employee’s employment is terminated pursuant to Section 5.2 (Death) or Section 5.3 (for Cause), or in the event that Employee resigns pursuant to Section 5.4, then Employee shall be entitled to receive his salary through the date his employment is terminated, and he shall not be entitled to any other benefits or compensation of any kind or amount.

 

7.           Confidentiality.  During the period of Employee’s employment with the Company and at all times after the termination of his employment, Employee shall keep secret and retain in strictest confidence, and shall not use for the benefit of himself or others (except in connection with the business and affairs of the Company or its Affiliates), all confidential information relating to the Company or to the business of any of the Company’s Affiliates, including, but not limited to, “know-how,” trade secrets, customer lists, supplier and vendor lists, lease agreements, lessors to and/or lessees of the Company, financial or business information, pricing policies, operational methods, marketing plans or strategies, product development techniques or plans, budgets, business acquisition plans, processes, designs and design projects, inventions and research projects, and other business affairs relating to the Company or to any Affiliate of the Company learned by Employee in connection with his employment with the Company, and shall not disclose them to anyone outside of the Company and its Affiliates, either during or after employment by the Company or any of its Affiliates, except: (i) as required in the course of performing his duties under this Agreement; or (ii) with the Company’s written consent.  Notwithstanding the foregoing, the obligations of Employee in this Section 7 shall not apply to confidential information: (a) which at the date hereof or thereafter becomes a matter of public knowledge without breach by Employee of this Agreement; or (b) which is obtained by Employee from a person (other than the Company or an Affiliate of the Company) under circumstances permitting its disclosure to others; or (c) which was already known by Employee prior to its disclosure to him by the Company as evidenced by contemporaneous written documentation.

 

  

- 3 -

  

 

Any information of the Company or any of its Affiliates which is not readily available to the public shall be considered to be a trade secret of the Company unless the Company advises Employee otherwise in writing.  Employee acknowledges that all of the Confidential Information is proprietary to the Company, and is a special, valuable and unique asset of the business of the Company, and that Employee's past, present and future employment by the Company has created, creates, and will continue to create, a relationship of confidence and trust between Employee and the Company with respect to the Confidential Information.  Furthermore, Employee shall immediately notify the Company of any information which comes to his attention which might indicate that there has been a loss of confidentiality with respect to any of the Confidential Information.  In such event, Employee shall take all reasonable steps within his power to limit the scope of such loss.

 

8.           Assignment.  This Agreement shall not be assignable, in whole or in part, by either party without the written consent of the other party, except that the Company may assign its rights and obligations under this Agreement to any corporation, firm, or other business entity (i) with or into which the Company may merge or consolidate; or (ii) to which the Company may sell or transfer all or substantially all of its assets, or of which 50% or more of the equity investment and of the voting control is owned, directly or indirectly, by, or is under common ownership with, the Company; provided, however, that as a condition to any such assignment by the Company, the Company shall obtain the assignee’s written agreement to assume and perform, from and after the date of such assignment, the terms, conditions, and provisions imposed by this Agreement upon the Company.  After any such assignment by the Company and such written agreement by the assignee, the Company shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the Company for the purposes of all provisions of this Agreement, including this Section 8.

 

9.           Non-Solicitation and Non-Competition.

 

9.1           Employee will not, during the Initial Term and any Renewal Term of this Agreement and for a period of one (1) years after expiration or termination of this Agreement for any reason, directly or indirectly (whether as an owner, partner, shareholder, member, manager, agent, officer, director, employee, independent contractor, consultant, or otherwise) with or through any individual or entity: (i) employ, engage, solicit for employment, or attempt to solicit, persuade, influence, or induce, any individual who is, or was at any time after the Effective Date of this Agreement for any reason, an employee, agent, or consultant of the Company, to leave the employ of the Company or to cease providing services to the Company, or to accept any other employment or position with another entity, or (ii) solicit or encourage any individual or entity that is, or was after the Effective Date and immediately prior to the termination of this Agreement for any reason, a customer, supplier, vendor, lessor, or lessee of the Company, to terminate or otherwise alter his, her or its relationship with the Company or any of its Affiliates.

 

  

- 4 -

  

 

9.2           Employee will not, during the Initial Term and any Renewal Term of this Agreement and for a period of one (1) year after expiration or termination of this Agreement for any reason, directly or indirectly (whether as an owner, partner, shareholder, member, manager, agent, officer, director, employee, independent contractor, consultant or otherwise), own, manage, operate, finance, control, or participate in the ownership, management, operation, financing or control of, or be employed by or associated with or in any manner connected with, any individual, corporation, partnership, limited liability company, association, joint venture, or other entity or organization, that is engaged in leasing and/or operation of indoor or outdoor digital advertising signs, or any other business whose products, services or activities compete, in whole or in part, with the business of the Company or any of its Affiliates, in cities and/or metropolitan areas where the Company conducts its business or operations; provided, however that Employee may, as a passive investor, purchase or otherwise acquire an amount not to exceed one percent (1%) of any class of securities of any business if such securities are listed on any national securities exchange; and provided further, that Employee may own securities of the Company that are granted or issued to him as compensation for his services under this Agreement or otherwise.

9.3           Employee hereby acknowledges and agrees that the covenants set forth in this Section 9 are reasonable with respect to duration, geographic area, and scope, and that Employee has received, and will receive under the terms of this Agreement, good and sufficient consideration for such covenants.

 

10.           Return of Company Materials.  Employee agrees to promptly deliver to the Company on expiration or termination of this Agreement for whatever reason, or at any time the Company may so request, all documents, records, designs, vendor and supplier lists, customer lists, lessor and/or lessee lists, data, spreadsheets, financial statements, budgets, drawings, flowcharts, listings, models, sketches, apparatus, notebooks, disks, notes, copies and similar repositories of Confidential Information and any other documents of a confidential nature belonging to the Company, including all copies, summaries, records, descriptions, modifications, drawings or adaptations of such materials which Employee may then possess or have under his control (collectively, “Proprietary Materials”).  Concurrently with the return of such Proprietary Materials to the Company, Employee agrees to deliver to the Company such further agreements and assurances to ensure the confidentiality of such Proprietary Materials.

 

11.           Other Provisions.

 

11.1           Governing Law.  This Agreement is made under and shall be governed by and construed in accordance with the laws of the State of Washington without giving effect to its conflict of law principles for the purpose of applying the laws of another jurisdiction.

 

11.2           Prior Agreements.  This Agreement contains the entire agreement of the parties relating to the subject matter hereof and supersedes all prior agreements and understandings with respect to such subject matter, and the parties hereto have made no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth herein and therein.

 

  

- 5 -

  

 

11.3           Withholding Taxes.  The Company may withhold from all payments and benefits under this Agreement all federal, state, city, or other taxes as shall be required pursuant to any law or governmental regulation or ruling.

 

11.4           Legal Advice.  Employee acknowledges that it was recommended to him by the Company that he obtain independent legal advice before executing this Agreement, and that by executing this Agreement Employee represents that he has had the opportunity to do so.

 

11.5           Amendments.  No amendment or modification of this Agreement shall be deemed effective unless made in writing signed by the parties hereto.

 

11.6           No Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provision of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought.  Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived, and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

 

11.7           Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and will be deemed to have been given when (a) delivered in person, or (ii) delivered by a recognized overnight courier (e.g. FedEx), or (iii) mailed by first class mail with postage prepaid and concurrently emailed, to Employee at his address as set forth below, or to any other address as Employee shall have designated in writing, or if to the Company, to the attention of the CEO at the address set forth below, or to another address as the Company shall have designated in writing:

 

If to Employee:                      _____________________________________

             _____________________________________

             _____________________________________          

 

 Fax No. ______________________________                                                     

 E-Mail:   _____________________________                                                   

If to the Company:                Digi Outdoor Media, Inc.

35332 S.E. Center Street

Snoqualmie, WA 98065

Attention:  Donald E. MacCord, Jr.

Fax No. ______________________________                                                     

E-Mail:  dmaccord@digioutdoor.com

 

 

11.8           Severability.  To the extent any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted from this Agreement and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect.

 

11.9           Survivability.  The provisions of Section 7 (Confidentiality), Section 9 (Non-Solicitation and Non-Competition), Section 10 (Return of Company Materials) and Section 11 (Other Provisions) of this Agreement shall survive the termination of this Agreement and the termination of Employee’s employment with the Company.

 

  

- 6 -

  

 

11.10           Nonalienation.  Except as otherwise required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, bankruptcy or hypothecation or to exclusion, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect.

 

11.11           Venue and Governing Law.  All disputes and matters whatsoever arising under, in connection with or incident to this Agreement, shall be litigated, if at all, in and before the Western District Court of Washington at Seattle, or as to those lawsuits as to which the Federal Courts of the United States lack subject matter jurisdiction, in the Courts of King County, State of Washington, to the exclusion of all other courts.  The construction, operation, and enforcement of this Agreement shall be governed by the laws of the State of Washington, without regard for that jurisdiction’s choice of law rules.

 

11.12           Execution in Counterparts.  This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original, but all such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart.  Transmission by facsimile of an executed counterpart signature page hereof by a party shall constitute due execution and delivery of this Agreement by such party.

 

 

[Signatures on following page]

 

  

- 7 -

  

 

 

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

 

Company:

 

Digi Outdoor Media, Inc.

 

 

By:  /s/ Shannon Doyle

Its: Chief Financial Officer

 

Employee:

 

/s/ Don MacCord

(Signature)

 

Print Name: Don McCord

 

  

- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]