Document:

Document

Exhibit 10.4

CANCELLATION AGREEMENT AND 
MUTUAL GENERAL RELEASE

THIS CANCELLATION AGREEMENT AND MUTUAL GENERAL RELEASE (this “Agreement”), dated as of August 18, 2022 (the “Effective Date”), is made by and between (i) 3i, LP (“Holder”), and (ii) CV Sciences, Inc. (the “Company”), with reference to the following facts:

A.        The Company and Holder are parties to (i) that certain Securities Purchase Agreement, dated as of November 14, 2021 (the “Securities Purchase Agreement”), by and between the Company and Holder, and all other “Transaction Documents” as defined in the Securities Purchase Agreement, in each case, as amended, supplemented or otherwise modified to date;

B.        Pursuant to the Securities Purchase Agreement, the Company has issued to Holder, and Holder is the sole registered holder of that certain Senior Convertible Note dated March 25, 2022 in the original principal amount of $1,060,000 (the “Note”), which is the sole Note outstanding under the Securities Purchase Agreement as of the Effective Date; 

C.        The Company desires to enter into a debt financing transaction pursuant to which the Company would issue a Secured Promissory Note to a to a third-party lender (“Lender”) in the principal amount of $2,000,000 (the “Financing”); 

D.        Holder and the Company desire to enter into this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1.Settlement Amount.  At the closing of the Financing, the consideration paid by the Lender will be $1,590,000 (the “Financing Amount”).  In consideration for the cancellation of the Note, all Transaction Documents and the releases set forth herein, the Company shall pay to Holder the sum of $675,000 (the “Settlement Amount”) by wire transfer of immediately available funds to an account designated by Holder within three (3) business days of the Company’s receipt of funds in the Financing.  The Company shall immediately notify Holder of the closing of the Financing and the Company’s receipt of funds from Lender in the Financing.  

2.     Representations and Warranties of Holder.  Holder represents and warrants that Holder (a) is the sole actual and beneficial holder of the Note and all rights and privileges of “Holder” thereunder, and all rights and privileges of “Buyer” under the Securities Purchase Agreement and under all Transaction Documents, and (b) has not assigned or transferred any of its rights under any Transaction Document to any third party, affiliate of Holder, or any other entity owned, controlled or affiliated with Holder.

3.     Termination of Notes, Warrants and other Agreements.  Each of Holder and the Company acknowledges and agrees that, as of the date hereof, (a) the Securities Purchase Agreement and each of the Transaction Documents (as defined in the Securities Purchase Agreement), (b) all contracts, agreements, obligations, promises, understandings, arrangements, commitments and undertakings of any and every kind (whether written or oral and whether express or implied) (collectively, “Contracts”) between the Company and Holder, whether contained in the Transaction Documents or pursuant to applicable law, and (c) all other rights and obligations now or previously owed to the Company by Holder or owed to Holder by the Company (the foregoing clauses (a), (b) and (c), collectively, the “Terminated Agreements”), are 

hereby terminated and canceled and shall be of no further force or effect; provided, however, that in the event the Company fails to timely deliver the Settlement Amount in accordance with Section 1 hereof, the terminations set forth in this Section 3 and releases set forth in Section 4 shall be null and void and of no further effect.  

4.    Mutual General Release

(a)    Each of (1) Holder, on behalf of itself and its affiliates, subsidiaries, predecessors, successors and assigns, and each of their respective present and former directors, officers, employees, shareholders, warrant holders, option holders, lenders, managers, representatives, agents, attorneys, heirs, beneficiaries, executors and administrators and all persons acting by, through or in concert with them (collectively, the “Holder Releasors”), and (2) the Company, on behalf of itself and its affiliates, subsidiaries, predecessors, successors and assigns, and each of their respective present and former directors, officers, employees, shareholders, warrant holders, option holders, lenders, managers, representatives, agents, attorneys, heirs, beneficiaries, executors and administrators and all persons acting by, through or in concert with them (collectively, the “Company Releasors” and, together with the Holder Releasors, the “Releasors”), does hereby fully and without limitation release, acquit and forever discharge the Company (with respect to the Holder Releasors) and Holder (with respect to the Company Releasors) and each of their respective present and former affiliates, subsidiaries, predecessors, successors and assigns, and each of their respective present and former directors, officers, employees, shareholders, warrant holders, option holders, lenders, managers, representatives, agents, attorneys, heirs, beneficiaries, executors and administrators, and all persons acting by, through or in concert with them, or any of them (each, individually, a “Releasee”), of and from any and all manner of action or actions, cause or causes of action, claims, charges, complaints, suits, liens, rights, demands, debts, contracts, agreements, promises, commitments, damages, liabilities, losses, costs, expenses and accountings of whatever nature, known or unknown, suspected or unsuspected, disclosed or undisclosed, fixed or contingent, in law or in equity, whether class, derivative or individual in nature, for indemnity or otherwise, which such Releasor now has or may have against any one or more of the Releasees based on, related to, arising from or in any way connected with any act, event, occurrence, omission or state of facts taken or existing from the beginning of time to the date hereof (collectively, “Claims”), including, without limitation, (i) any and all Claims related to any shares of capital stock of the Company or any other equity security of the Company, including any options, warrants, restricted stock, and other securities that are convertible into or exercisable for shares of capital stock or other equity securities of the Company (collectively, “Equity Securities”); (ii) any and all Claims related to any other ownership or other interest in the Company, (iii) any and all Claims related to any indebtedness or other obligations owed to or by the Company, including any redemption right in the Transaction Documents, (iv) any and all Claims related to or arising from any of the Terminated Agreements, including but not limited to all Principal, accrued Interest, Late Charges and other amounts at any time owed on the Note or under any of the Transaction Documents; and (v) any and all Claims to all or any portion of the proceeds payable by the Investor in connection with the Financing other than the Settlement Amount.  Notwithstanding anything to the contrary in this Section 3(a), no release is given hereunder in respect of (and the following rights or claims shall not be considered “Claims” for purposes of this Section 4(a)) (a) any claim which cannot be waived by law, (b) claims arising out of, resulting from or relating, directly or indirectly, to any act, omission or event occurring after the date hereof, including the payment of the Settlement Amount.

(b)    Each Releasor acknowledges that it may discover facts different from or in addition to those which such Releasor now knows or believes to be true and that the release contained in this Section 4 shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery thereof.  IN ADDITION, EACH RELEASOR EXPRESSLY WAIVES ALL RIGHTS UNDER SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH READS AS FOLLOWS:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

WITH FULL AWARENESS AND UNDERSTANDING OF THE ABOVE PROVISIONS, EACH RELEASOR HEREBY WAIVES ANY RIGHTS SUCH RELEASOR MAY HAVE UNDER SECTION 1542 OF THE CALIFORNIA CIVIL CODE, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.  EACH RELEASOR INTENDS TO, AND HEREBY DOES, RELEASE THE RELEASEES FROM CLAIMS WHICH SUCH RELEASOR DOES NOT PRESENTLY KNOW OR SUSPECT TO EXIST AT THIS TIME.

(c)    Each Releasor represents and warrants to the Releasees that there has been no assignment or other transfer of any interest in any Claim which such Releasor may have against the Releasees, or any of them, and such Releasor agrees to indemnify and hold the Releasees harmless from any liability, claims, demands, damages, costs, expenses and attorneys’ fees incurred as a result of any person asserting any such assignment or transfer of any rights or Claims under any such assignment or transfer from such Releasor.

(d)    Each Releasor agrees that if such Releasor hereafter commences, joins in, or in any manner seeks relief through any suit arising out of, based upon, or relating to any of the Claims released hereunder, or in any manner asserts against the Releasees any of the Claims released hereunder, then such Releasor will pay to the Releasees against whom such suit or Claim is asserted, in addition to any other damages caused thereby, all attorneys’ fees incurred by such Releasees in defending or otherwise responding to said suit or Claim.

(e)    Each Releasor further understands and agrees that the execution of this Agreement shall not constitute or be construed as an admission of any liability whatsoever by any Releasee.

5.    Termination of Liens

(a)    Holder hereby acknowledges and agrees that all security interests, liens, mortgages, pledges, hypothecations and other encumbrances (collectively, “Liens”) in, or otherwise affecting any property or assets of the Company (collectively, “Collateral”) that were granted to Holder to secure any and all obligations of the Company owed to Holder are hereby automatically terminated and released without any further action on the part of any party.  Upon request by the Company, Holder agrees to promptly deliver to the Company all Uniform Commercial Code financing statement terminations, lien releases, intellectual property releases, mortgage releases, discharges and instruments which are necessary or appropriate to terminate all instruments of record related to any Liens on Collateral (if any) or any other property previously granted by the Company in favor of Holder.

(b)    Holder hereby acknowledges and agrees that the Company (or any party designated by the Company as its designee for this purpose) is hereby authorized to file and record all appropriate Uniform Commercial Code financing statement terminations and other documents and agreements which are necessary or appropriate to terminate all instruments of record related to any Liens on Collateral or any other property previously granted by the Company in favor of Holder.

6.    Miscellaneous

(a)    Successors and Assigns.  No party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party.  Any attempt by a party to 

assign any of its rights or obligations under this Agreement in violation of this Section 6(a) shall be void.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

(b)    Entire Agreement.  This Agreement supersedes all prior discussions, agreements and understandings (whether written or oral) between the parties hereto with respect to the subject matter hereof and contains the sole and entire agreement of the parties hereto with respect to the subject matter hereof.

(c)    Attorneys’ Fees.  If any Releasee commences any legal action, arbitration or other proceeding against a Releasor to enforce any part of this Agreement, such Releasee, if it prevails in such proceeding, will be entitled to recover, as an element of the costs of suit and not as damages, reasonable attorneys’ fees to be fixed by the court or arbitrator (including without limitation costs, expenses and fees on any appeal).

(d)    Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York applicable to a contract executed and performed in such state, without giving effect to the conflicts of laws principles thereof.

(e)    Severability.  In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction), and the balance of this Agreement shall be interpreted as if such provisions were so excluded and shall be enforceable in accordance with its terms.

(f)    Counterparts.  This Agreement may be executed in two or more counterparts and by facsimile, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

(g)    Headings.  The titles of the articles, sections, subsections, paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, each of the parties hereto has executed and delivered this Agreement as of the date first above written.

“Holder”

3i, LP

By:                                                                    

Name:                                                               

Title:                                                               

“Company”

CV SCIENCES, INC.

By:                                                                   
Name:  Joseph Dowling 
Title:    Chief Executive OfficerDocument

Exhibit 10.1

EMPLOYMENT AGREEMENT

    This Employment Agreement (the “Agreement”), is executed as of August 25, 2022 to be effective as of September 1, 2022, by and between RCI HOSPITALITY HOLDINGS, INC., a Texas corporation (the “Company”), and ERIC LANGAN (the “Executive”).

W I T N E S S E T H:

    WHEREAS, the Company desires to employ Executive as provided herein, and Executive desires to accept such employment; and 

    WHEREAS, the Company and Executive entered into an Employment Agreement effective July 1, 2021 (the “Old Employment Agreement”) and desire that this Agreement replace and supersede the Old Employment Agreement in its entirety, whereby the Old Employment Agreement will be of no force and effect as of the effective date of this Agreement.

    NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

    1.    Employment.  Company hereby employs Executive and Executive hereby accepts employment with Company upon the terms and conditions hereinafter set forth.

    2.    Duties.  Subject to the power of the Board of Directors of Company to elect and remove officers, Executive will serve the Company as its President and Chief Executive Officer and will faithfully and diligently perform the services and functions relating to such office or otherwise reasonably incident to such office, provided that all such services and functions will be reasonable and within Executive’s area of expertise.  Executive will, during the term of this Agreement (or any extension thereof), devote his full business time, attention and skills and best efforts to the promotion of the business of Company.  The foregoing will not be construed as preventing Executive from making investments in other businesses or enterprises provided that (a) Executive agrees not to become engaged in any other business activity that interferes with his ability to discharge his duties and responsibilities to the Company and (b) Executive does not violate any other provision of this Agreement.

    3.    Term.  Subject to the terms and conditions hereof, the term of employment of Executive will commence on September 1, 2022 (the “Commencement Date”) and will end on August 31, 2024, unless earlier terminated by either party pursuant to the terms hereof.  The term of this Agreement is referred to herein as the “Term.”

    4.    Compensation and Benefits During the Employment Term.

(a)Salary.  Commencing upon the Commencement Date, Executive will be paid an annual base salary of $1,700,000 for the entire Term, payable bi-weekly (the “Salary”).  At any time and from time to time the Salary may be increased for the remaining portion of the Term if so determined by the Board of Directors of Company after a review of Executive’s performance of his duties hereunder.

(b)Bonus.  As further compensation, Executive will be eligible for bonuses as determined from time to time by the Board of Directors.

Employment Agreement - Page 1 

(c)Expenses. Upon submission of a detailed statement and reasonable documentation, Company will reimburse Executive in the same manner as other executive officers for all reasonable and necessary or appropriate out-of-pocket travel and other expenses incurred by Executive in rendering services required under this Agreement.

(d)Benefits; Insurance.

(i)    Medical, Dental and Vision Benefits.  During the Term, Executive and his dependents will be entitled to receive such group medical, dental and vision benefits as Company may provide to its other executives, provided such coverage is reasonably available, or be reimbursed if Executive is carrying his own similar insurance.

(ii)    Benefit Plans.  The Executive will be entitled to participate in any benefit plan or program of the Company which may currently be in place or implemented in the future.

(iii)    Use of Automobile.  Executive will be provided a Company-owned automobile that Executive may use for both business and personal travel.

(iv)    Use of Aircraft.  Executive may be provided access to Company-owned aircraft which Executive may use for both business and personal travel, subject to and conditioned on the terms and conditions of the Company’s Corporate Aircraft Policy, which policy may be changed by the Board of Directors at its sole discretion.

(v)    Other Benefits.  During the Term, Executive will be entitled to receive, in addition to and not in lieu of base salary, bonus or other compensation, such other benefits and normal perquisites as Company currently provides or such additional benefits as Company may provide for its executive officers in the future.

(e)    Vacation.  Executive will be entitled to two weeks paid vacation each year of this Agreement.

    5.    Confidentiality and Non-Competition.  

    (a)    Confidentiality.  In the course of the performance of Executive’s duties hereunder, Executive recognizes and acknowledges that Executive may have access to certain confidential and proprietary information of Company or any of its affiliates.  Without the prior written consent of Company, Executive shall not disclose any such confidential or proprietary information to any person or firm, corporation, association, or other entity for any reason or purpose whatsoever, and shall not use such information, directly or indirectly, for Executive’s own behalf or on behalf of any other party.  Executive agrees and affirms that all such information is the sole property of Company and that at the termination and/or expiration of this Agreement, at Company’s written request, Executive shall promptly return to Company any and all such information so requested by Company.

        The provisions of this Section 5 shall not, however, prohibit Executive from disclosing to others or using in any manner information that: 

Employment Agreement - Page 2 

(i)    has been published or has become part of the public domain other than by acts, omissions or fault of Executive;

    (ii)    has been furnished or made known to Executive by third parties (other than those acting directly or indirectly for or on behalf of Executive) as a matter of legal right without restriction on its use or disclosure; 

    (iii)    was in the possession of Executive prior to obtaining such information from Company in connection with the performance of this Agreement; or

    (iv)    is required to be disclosed by law.

    (b)    Non-Competition.  Executive agrees that he will not, for himself, on behalf of, or in conjunction with any person, firm, corporation or entity, either as principal, employee, shareholder, member, director, partner, consultant, owner or part-owner of any corporation, partnership or any other type of business entity, directly or indirectly, own, manage, operate, control, be employed by, participate in, or be connected in any manner with the ownership, management, operation, or control of any establishment which either: 

(i)has live female nude or semi-nude entertainment or is in any business similar to or competitive with the female entertainment business presently conducted by the Company, or any of its affiliates; and/or 

(ii)sells alcohol for consumption on site;

anywhere in the United States within 50 miles of any business of the Company or its affiliate, or any business of the Company or its affiliate under construction, under contract, in development or leased by or to the Company or its affiliate, for a period of two years (the “Non-Compete Period”) from the termination of this Agreement.  However, in the event of the termination of Executive’s employment pursuant to Section 7(d) or 7(f), the Non-Compete Period shall be six months.  

    Executive agrees not to hire, solicit or attempt to solicit for employment by Executive or any company to which he may be involved, either directly or indirectly, any party who is an employee or independent contractor of the Company or any entity which is affiliated with the Company, or any person who was an employee or independent contractor of the Company or any entity which is affiliated with the Company within the two-year period immediately following the termination of this Agreement.

Executive acknowledges that he has carefully read and considered all provisions of this Agreement and agrees that:

(i)    Due to the nature of the Company’s business, the foregoing covenants place no greater restraint upon Executive than is reasonably necessary to protect the business and goodwill of the Company;  

(ii)    These covenants protect the legitimate interests of the Company and do not serve solely to limit the Company’s future competition;

(iii)    This Agreement is not an invalid or unreasonable restraint of trade;

Employment Agreement - Page 3 

(iv)    A breach of these covenants by Executive would cause irreparable damage to the Company;

(v)    These covenants are reasonable in scope and are reasonably necessary to protect the Company’s business and goodwill which the Company has established through its own expense and effort; and

(vi)The signing of this Agreement is necessary as part of the consummation of the transactions described in the preamble. 

(c)    Work Product.  All work product of Executive is the sole property of the Company.  Work product of Executive includes but is not limited to any and all discoveries, inventions, ideas, concepts, research, information, processes, software development, products, techniques, methods and improvements or parts thereof conceived, developed, or otherwise made by Executive alone or jointly with others during the period of his employment with the Company, and in any way relating to the present or proposed products, services and/or operations of the Company, whether or not patentable or subject to copyright or trademark protection, whether or not made during Executive’s regular working hours, and whether or not made on the Company premise.

    6.    Indemnification.  The Company shall to the full extent permitted by law or as set forth in the Articles of Incorporation and the Bylaws of the Company, indemnify, defend and hold harmless Executive from and against any and all claims, demands, liabilities, damages, loses and expenses (including reasonable attorney’s fees, court costs and disbursements) arising out of the performance by him of his duties hereunder except in the case of his willful misconduct.

    7.    Termination.  This Agreement and the employment relationship created hereby will terminate (i) upon the death or disability of Executive under section 7(a) or 7(b), respectively; (ii) with cause under Section 7(c); (iii) for good reason under Section 7(d); (iv) upon the voluntary termination of employment by Executive under Section7(e); or without cause under Section 7(f).
 
(a)    Disability.  The Company shall have the right to terminate the employment of the Executive under this Agreement for disability in the event Executive suffers an injury, illness, or incapacity of such character as to substantially disable him from performing his duties without reasonable accommodation by the Company hereunder for a period of more than one hundred eighty (180) consecutive days upon the Company giving at least thirty (30) days written notice of termination.

    (b)    Death.  This Agreement will terminate on the Death of the Executive.

    (c)    With Cause.  The Company may terminate this Agreement at any time because of (i) Executive’s material breach of any term of the Agreement, (ii) the determination by the Board of Directors in the exercise of its reasonable judgment that Executive has committed an act or acts constituting a felony or other crime involving moral turpitude, dishonesty or theft or fraud; or (iii) Executive’s gross negligence in the performance of his duties hereunder, provided, in each case, however, that the Company shall not terminate this Agreement pursuant to this Section 7(c) unless the Company shall first have delivered  to  the Executive, a notice which specifically identifies such breach or misconduct and the executive shall not have cured the same within fifteen (15) days after receipt of such notice.
Employment Agreement - Page 4 

    (d)    Good Reason.  The Executive may terminate his employment for “Good Reason” if:

(i)    he is assigned, without his express written consent, any duties materially inconsistent with his positions, duties, responsibilities, or status with the Company as of the date hereof, or a change in his reporting responsibilities or titles as in effect as of the date hereof; provided, however, that Executive must provide the Company with written notice of his dispute of such re-assignment of duties or change in his reporting responsibilities under this Section 7(d)(i) and give the Company opportunity to cure such inconsistency.  If such dispute is not resolved within thirty (30) days, the Company shall submit such dispute to arbitration under Section 14. 

(ii)    his compensation is reduced;

(iii)    the Company does not pay any material amount of compensation due hereunder and then fails either to pay such amount within the ten (10) day notice period required for termination hereunder or to contest in good faith such notice.  Further, if such contest is not resolved within thirty (30) days, the Company shall submit such dispute to arbitration under Section 14.

    (e)    Voluntary Termination.  The Executive may terminate his employment voluntarily.

    (f)    Without Cause.  The Company may terminate this Agreement without cause.

    8.    Obligations of Company Upon Termination.

(a)In the event of the termination of Executive’s employment pursuant to Section 7 (a), (b), (c) or (e), Executive will be entitled only to the compensation earned by him hereunder as of the date of such termination (plus life insurance or disability benefits if applicable and provided for pursuant to Section 4(d)).

(b)In the event of the termination of Executive’s employment pursuant to Section 7 (d), Executive will be entitled to receive, if successful in arbitration under Section 14, in one lump sum payment the full remaining amount under the Term of this Agreement to which he would have been entitled had this Agreement not been terminated.

(c)In the event of the termination of Executive’s employment pursuant to Section 7 (f), Executive will be entitled to receive in one lump sum payment the full remaining amount under the Term of this Agreement to which he would have been entitled had this Agreement not been terminated.

    9.    Waiver of Breach.  The waiver by any party hereto of a breach of any provision of this Agreement will not operate or be construed as a waiver of any subsequent breach by any party.

    10.    Costs.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party will be entitled to reasonable attorney’s fees, 
Employment Agreement - Page 5 

costs and necessary disbursements in addition to any other relief to which he or it may be entitled.

    11.    Notices.  Any notices, consents, demands, requests, approvals and other communications to be given under this Agreement by either party to the other will be deemed to have been duly given if given in writing and personally delivered or within two days if sent by mail, registered or certified, postage prepaid with return receipt requested, as follows:

            If to Company:    RCI Hospitality Holdings, Inc.
                        10737 Cutten Road
                        Houston, Texas 77066
                        Attention: Travis Reese, Executive Vice President

            If to Executive:    Eric Langan
                        5404 Pine Street
                            Bellaire, Texas 770401

    Notices delivered personally will be deemed communicated as of actual receipt.

    12.    Entire Agreement.  This Agreement and the agreements contemplated hereby constitute the entire agreement of the parties regarding the subject matter hereof, and supersede all prior agreements and understanding, both written and oral, among the parties, or any of them, with respect to the subject matter hereof.

    13.    Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during this Agreement, such provision will be fully severable and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof; and the remaining provisions hereof will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there will be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

    14.    Arbitration.  If a dispute should arise regarding this Agreement the parties agree that all claims, disputes, controversies, differences or other matters in question arising out of this relationship shall be settled finally, completely and conclusively by arbitration in Houston, Texas in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “Rules”).  The governing law of this Agreement shall be the substantive law of the State of Texas, without giving effect to conflict of laws.  A decision of the arbitrator shall be final, conclusive and binding on the Company and Executive.  Any arbitration held in accordance with this paragraph shall be private and confidential and no person shall be entitled to attend the hearings except the arbitrator, Executive, Executive’s attorneys, a representative of the Company, the Company’s attorneys, and advisors to or witnesses for any party. The matters submitted to arbitration, the hearings and proceedings and the arbitration award shall be kept and maintained in the strictest confidence by Executive and the Company and shall not be discussed, disclosed or communicated to any persons except as may be required for the preparation of expert testimony.  On request of any party, the record of the proceeding shall be sealed and may not be disclosed except insofar, and only insofar, as may be necessary to enforce the award of the arbitrator and any judgement enforcing an award.  The prevailing party shall be entitled to recover reasonable and necessary attorneys’ fees and costs from the non-prevailing party and the determination of such fees and costs and the award thereof shall be included in the claims to be resolved by the arbitrator hereunder.

Employment Agreement - Page 6 

    15.    Captions.  The captions in this Agreement are for convenience of reference only and will not limit or otherwise affect any of the terms or provisions hereof.

    16.    Gender and Number.  When the context requires, the gender of all words used herein will include the masculine, feminine and neuter and the number of all words will include the singular and plural.

    17.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed an original and all of which will constitute one and the same instrument, but only one of which need be produced. 

    18.    Company Authorization.  The Company represents that the Board of Directors has approved this Agreement.

    19.    Termination of Old Employment Agreement.  The Company and Executive agree that this Agreement replaces and supersedes the Old Employment Agreement in its entirety, whereby the Old Employment Agreement will be of no force and effect as of the effective date of this Agreement.

    

[Signature page follows]
Employment Agreement - Page 7 

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

COMPANY:

                    RCI HOSPITALITY HOLDINGS, INC.

By:     /s/ Travis Reese _______________________
    Travis Reese, Executive Vice President

EXECUTIVE:

/s/ Eric Langan_____________________________
Eric Langan
Employment Agreement - Page 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}]]