Document:

10-1

 

Exhibit 10.1

 

Amendment No. 1 to the Executive

Employment Agreement

Between Track Group, Inc. and Peter K. Poli

Dated December 12, 2016

 

 

THIS AMENDMENT NO. 1 to that certain Executive
Employment Agreement by and between Track Group, Inc. (the
"Company") and Peter K. Poli (the "Employee") is entered into as of
December 13, 2017.

 

WHEREAS, the Company and the Employee
entered into that certain Executive Employment Agreement dated
December 12, 2016 (the "Employment Agreement"); and

 

WHEREAS, the Board of Directors of the
Company has agreed to increase Employee’s base salary, to
provide Employee with Shares of Company common stock, and have
agreed to the other terms contained herein.

 

NOW, THEREFORE, the parties agree to
amend the Employment Agreement effective January 1, 2018, as
follows:

 

1.
     Paragraph 3A. shall be modified to change
the base salary to $250,000.00 per calendar year effective January
1, 2018.

 

2. Paragraph 3 shall
be amended by adding the following provision:

“Employee
will be issued 150,000 unregistered restricted shares of Company
common stock (the “Shares”). The Shares shall bear an
applicable restrictive legend. The Shares shall vest as follows:
(i) 50,000 Shares shall vest on January 1, 2018, (ii) 50,000 Shares
shall vest on January 1, 2019 (iii) 50,000 Shares shall vest on
January 1, 2020. In the event of Employee's death or permanent
disability, all of the Shares shall immediately vest. Prior to the
transfer of any of the Shares during any period during which the
Shares are not registered by the Company under an effective
registration statement filed, pursuant to the Securities Act of
1933, as amended, Employee shall comply with all laws and
regulations for the transfer of restricted shares, as well as the
Company's trading policies and procedures as set forth in the
Corporate Governance Manual. The Company covenants that in the
event it proposes to file a registration statement to register
shares with the U.S. Securities and Exchange Commission ("SEC") and
the Shares would be eligible for registration on such registration
statement, the Company, with Employee's written consent, shall
include the Shares in such registration statement.

 

Subject to
paragraph 5, in the event Employee's employment with the Company is
terminated before all of the Shares are vested, Employee shall
forfeit any unvested Shares.

 

D.
Change of Control. In the
event that, at any time during the Executive’s employment
under this Agreement, the Company experiences a Change of Control
(as hereinafter defined), the Executive shall be entitled to
receive a cash payment equal to twelve (12) months of
Executive’s Base Annual Salary (at the Executive’s
highest Base Annual Salary), plus all Restricted Stock, Warrant and
Options shall become one hundred percent (100%) vested and fully
exercisable and the Company shall have no repurchase
right.

 

 

 

 

For
purposes of this Agreement, a “Change of Control” shall
mean, and be deemed to have occurred upon: (i) a sale or transfer
of substantially all of the Common Stock of the Company in any
transaction or series of related transactions (other than sales in
the ordinary course of business); (ii) any merger, consolidation or
reorganization to which the Company is a party, except for a
merger, consolidation or reorganization in which the Company is the
surviving corporation and, after giving effect to such merger,
consolidation or reorganization, the holders of the Company’s
outstanding Common Stock (on a fully-diluted basis) immediately
prior to the merger, consolidation or reorganization, hold a
majority of the voting power of the Company after such merger,
consolidation or reorganization.”

 

3. Paragraph 5A.
shall be deleted in its entirety and replaced with the
following:

 

“A.
Employment Term of Agreement. The “Employment Term” of
this Agreement shall commence on January 1, 2018 and shall continue
in effect for a period of thirty-six (36) months or until
terminated by one of the parties pursuant to the terms of this
Section 5. Following such thirty-six (36) month period (and each
twelve (12) month period thereafter), the Employment Term shall
automatically renew for successive twelve (12) month periods unless
either party hereto notifies the other party at least six (6)
months in advance of the applicable period of its intent to not
renew the Agreement.”

 

6. Paragraph 5B. (II)
(ii) shall be modified to provide that for purposes of the
Severance Payment the Target Bonus shall be deemed to be vested and
earned.

 

 

IN WITNESS WHEREOF, each of the parties has executed this
Amendment No. 1 to the Executive Employment Agreement between Track
Group, Inc. and Peter K. Poli dated December 12, 2016, in the case
of the Company by its duly authorized Board Member, as of the day
and year first above written.

 

 

	
TRACK
GROUP, INC.

 

By: /s/ Guy
Dubois       

       Guy
Dubois     

       Chairman of the
Board

	
EMPLOYEE

 

/s/ Peter K. Poli

Peter
K. Poli10-2

 

Exhibit 10.2

 

Amendment No. 2 to the Executive

Employment Agreement

Between Track Group, Inc. and Derek Cassell

Dated December 1, 2016

 

 

THIS AMENDMENT NO. 2 to that certain Executive
Employment Agreement by and between Track Group, Inc. (the
"Company") and Derek Cassell (the "Executive") is entered into as
of December 13, 2017.

 

WHEREAS, the Company and the Executive
entered into that certain Executive Employment Agreement dated
December 1, 2016 (the "Employment Agreement"); and

 

WHEREAS, the Company and the Executive
entered into an Amendment to the Employment Agreement dated
February 13, 2017 (“Amendment 1”); and

 

WHEREAS, the Board of Directors of the
Company has agreed to promote Executive, and Executive has agreed
to accept a promotion, from the position of President to Chief
Executive Officer effective January 1, 2018, and the parties have
agreed to increase Executive’s base salary, to increase his
Target Bonus from 50% to 100% effective for bonus plan year 2018
and thereafter, to provide Executive with additional Shares of
Company common stock, and have agreed to the other terms contained
herein.

 

NOW, THEREFORE, the parties agree to
amend the Employment Agreement effective January 1, 2018, as
follows:

 

1.      
The Employment Agreement and Exhibit B thereto shall be modified to
replace the word "President" with the words "Chief Executive
Officer" wherever the word "President" appears.

 

2.       
Paragraph 2 shall be modified to read in full as
follows:

 

"During his
Employment Term as defined in Paragraph 5, Executive will perform
his duties faithfully and to the best of his ability and will
devote his full business efforts and time during normal working
hours to the Company. Executive will report to the Board of
Directors of the Company. Executive shall be responsible for duties
typical of the office, including but not limited to the
responsibilities set forth in the Track Group, Inc. Corporate
Governance Manual Position Description For Chief Executive Officer.
Furthermore, Executive shall perform such other duties and projects
as may be assigned by the Board of Directors of the Company that
are consistent with his position."

 

3. 
      Paragraph 3A. shall be modified to
change the base salary to $275,000.00 per calendar year effective
January 1, 2018.

 

 

 

 

 

4.        
Paragraph 3 shall be modified to include the
following:

 

“ B. (i)
Subject to approval by the Board of Directors, Executive will be
issued 300,000 unregistered restricted shares of Company common
stock (the “Shares”). The Shares shall bear an
applicable restrictive legend. The Shares shall vest as follows:
(i) 100,000 Shares shall vest on January 1, 2018, (ii) 100,000
Shares shall vest on January 1, 2019 and (iii) 100,000 Shares shall
vest on January 1, 2020.”

 

“D.
Change of Control. In the
event that, at any time during the Executive’s employment
under this Agreement, the Company experiences a Change of Control
(as hereinafter defined), the Executive shall be entitled to
receive a cash payment equal to twelve (12) months of
Executive’s Base Annual Salary (at the Executive’s
highest Base Annual Salary), plus all Restricted Stock, Warrant and
Options shall become one hundred percent (100%) vested and fully
exercisable and the Company shall have no repurchase
right.

 

For
purposes of this Agreement, a “Change of Control” shall
mean, and be deemed to have occurred upon: (i) a sale or transfer
of substantially all of the Common Stock of the Company in any
transaction or series of related transactions (other than sales in
the ordinary course of business); (ii) any merger, consolidation or
reorganization to which the Company is a party, except for a
merger, consolidation or reorganization in which the Company is the
surviving corporation and, after giving effect to such merger,
consolidation or reorganization, the holders of the Company’s
outstanding Common Stock (on a fully-diluted basis) immediately
prior to the merger, consolidation or reorganization, hold a
majority of the voting power of the Company after such merger,
consolidation or reorganization.

 

5.        
The last sentence of Paragraph 3B. as set forth in Amendment 1
shall be modified to add at the beginning the words: “Subject
to paragraph 5,”

 

6.        
Paragraph 5A. shall be deleted in its entirety and replaced with
the following:

 

“A.
Employment Term of Agreement. The Employment Term of this Agreement
shall commence on October 1, 2016 and shall continue in effect
until December 31, 2020 unless earlier terminated by either party
in accordance with the provisions of this Section 5, or extended by
mutual agreement of the parties.”

 

7.        
Paragraph 5B.(II)(ii) shall be modified to provide that for
purposes of the Severance Payment the Target Bonus shall be deemed
to be vested and earned.

 

8.        
The last sentence of Paragraph 6 shall be modified to read in full
as follows: “If Executive voluntarily terminates his
employment with the Company he shall provide written notice to the
Chairman of the Board of Directors at least one hundred twenty
(180) days prior to terminating such
employment.”

 

9.        
Paragraph 12 shall be modified to change notice to the Company from
"Attn: Chief Executive Officer" to "Attn: Chairman, Board of
Directors."

 

 

 

 

 

 

10.        
Exhibit "B" of the Employment Agreement titled "Executive Bonus
Formula" shall be modified to change the Target Bonus percentage
from 50% to 100% effective for bonus plan year 2018 and for each
bonus plan year thereafter.

 

 

IN WITNESS WHEREOF, each of the parties has executed this
Amendment No. 2 to the Executive Employment Agreement between Track
Group, Inc. and Derek Cassell dated December 1, 2016, in the case
of the Company by its duly authorized Board Member, as of the day
and year first above written.

 

 

	
TRACK
GROUP, INC. 

 

By: 
/s/ Guy
Dubois  

      Guy
Dubois

      Chairman of the
Board

	
EXECUTIVE

 

/s/
Derek Cassell

Derek
Cassell

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