Document:

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  Exhibit 10.1

 

RESIGNATION LETTER

 

October
7, 2019

 

 

 

Dear
Mr. Rosen:

 

Fusion
Connect, Inc. (“Fusion”) hereby
acknowledges and accepts your resignation from your position as
Chief Executive Officer of Fusion and from any and all officer and
director positions at any of Fusion’s subsidiaries
(collectively with Fusion, the “Company”), effective as
of October 7, 2019 at 11:59 p.m. (the “Effective Date”), in
accordance with Section 3.4 of your employment agreement with
Fusion dated as of November 7, 2018 and effective as of November 6,
2018 (the “Employment
Agreement”).

 

Notwithstanding
the foregoing, following the Effective Date, you shall continue to
be employed by the Company and shall continue to serve as a
director and serve as Chairman of the Board of Directors of Fusion
(the “Board”), pursuant to the
Amended and Restated Certificate of Incorporation of Fusion and
Amended and Restated Bylaws of Fusion, until the date that Fusion
and its U.S. subsidiaries emerge from protection under chapter 11
of title 11 of the U.S. Bankruptcy Code pursuant to the Second
Amended Joint Chapter 11 Plan Of Fusion Connect, Inc., And Its
Subsidiary Debtors (as may be further amended and together with the
agreements and documents referenced therein, the
“Plan”),
which date shall be the effective date of the Plan (such date, the
“Emergence
Date”).

 

During
your service as Chairman of the Board and as an employee of the
Company, until the Emergence Date, you will continue to receive
your current base salary at the annual rate of $1,000,000, remain
eligible to participate in the Company’s retirement and
health and welfare plans, receive reimbursement of your business
expenses incurred in accordance with the terms of the
Company’s expense reimbursement policy, and have use of your
existing office space and current secretary at the Company’s
office in New York, New York. You will be fully vested in, and be
under no obligation to repay any portion of, your key employee
retention bonus payment in the aggregate amount of $200,000. Upon
the Emergence Date, you will receive payment of all accrued
benefits under the Company’s benefit plans and
policies.

 

You
shall be entitled to use your existing Company email address for
two years following the Effective Date and your existing Company
phone number through the expiration of the term of the consulting
agreement entered into between you and Fusion on the Emergence
Date, subject in each case to your continued compliance with any
non-competition, non-solicitation, confidentiality,
non-disparagement, assignment of inventions, other intellectual
property or other restrictive covenant agreement which you are a
party to with the Company.

 

Subject
to court approval of the Plan, on the Emergence Date, reorganized
Fusion shall enter into the consulting agreement in the form
attached hereto as Exhibit
A (the “Consulting Agreement”).
On the Emergence Date, you agree that you will resign from your
position as a director of Fusion and Chairman of the Board and that
your employment with the Company shall cease. You acknowledge and
agree that you are not entitled to any other payment or benefits
arising out of your employment with the Company and the termination
thereof.

 

 

 

 

In
consideration of the Company’s obligations under this letter
agreement and for other valuable consideration, you, and each of
your heirs, executors, administrators, representatives, agents,
successors and assigns (collectively, the “Releasors”) hereby
irrevocably and unconditionally release and forever discharge the
Company and its subsidiaries and affiliates (collectively, the
“Releasees”) from any and
all claims, actions, causes of action, rights, judgments,
obligations, damages, demands, accountings or liabilities of
whatever kind or character (collectively, “Claims”) arising after
the Company commenced voluntary cases under chapter 11 of title 11
of the United States Code, 11 U.S.C. §§ 101 et seq., in
the United States Bankruptcy Court for the Southern District of New
York (the “Chapter
11 filing”), including, without limitation, any Claims
under Title VII of the Civil Rights Act, as amended, the Americans
with Disabilities Act, as amended, the Family and Medical Leave
Act, as amended, the Equal Pay Act, as amended, the Employee
Retirement Income Security Act, as amended, the Civil Rights Act of
1991, as amended, the Worker Adjustment and Retraining Notification
Act, as amended, and any other Claims under any federal, state,
local or foreign law, that the Releasors may have, or in the future
may possess, arising out of (i) your employment with the Company
and the termination of such employment or (ii) any event,
condition, circumstance or obligation that occurred, existed or
arose on or after the date of the Chapter 11 filing; provided,
however, that the release set forth herein will not apply to any
(i) Claims for annual base salary or employee benefits provided
pursuant to this letter agreement or (ii) any Claims arising before
the Chapter 11 filing, including but not limited to any claims you
asserted or could assert in any proof of claim filed in the
Company’s chapter 11 cases. In consideration of the
foregoing, Consultant further agrees to vote in favor of the Plan
and to the releases contained therein. To the extent you have
asserted any prepetition claims against the Company, the Company
shall not seek to reclassify such claims as post-petition claims
subject to the foregoing release.

 

Should
the court fail to confirm the Plan or the Company fail to emerge
from chapter 11, the obligations of the Company and you hereunder
shall be null and void ab
initio; provided, however, that your resignation as Chief
Executive Officer shall remain effective.

 

 

	

 Sincerely,

	
 

	
 

	

 

 

FUSION
CONNECT, INC.

 

	
 

	

 

 

AGREED
AND ACKNOWLEDGED:

	
 

	
 

	
 

	

/s/
James P. Prenetta, Jr.

	
 

	

/s/
Matthew D. Rosen

	

By:
James P. Prenetta, Jr.

	
 

	

Name:
Matthew D. Rosen

	

Title:
Executive Vice President and General Counsel

	
 

	
 

 

 

 

 

 

 

 

Exhibit A

 

Consulting Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT
(“Agreement”)
is made and entered into as of the ____ day of ______, 2019 (the
“Effective
Date”), between Fusion Connect, Inc.
(“Fusion”)
with an address at 210 Interstate North Parkway, Suite 300,
Atlanta, GA 30339 and Matthew D. Rosen, with an address at
[●] (“Consultant”).

 

W I T N E S S E T H:

 

WHEREAS, Fusion desires to retain Consultant to provide
the services specified in the Statement
of Work attached hereto
as Annex
A (collectively, the
“Services”);

 

WHEREAS, Consultant is willing to
provide Fusion and its subsidiaries (collectively, the
“Company”)
with the Services on the terms, and subject to the conditions, set
forth herein; and

 

NOW, THEREFORE, Fusion and Consultant,
each intending to be legally bound, hereby mutually covenant and
agree as follows:

 

 

ARTICLE I

 

Definitions

 

 

The
following terms used in this Agreement shall have the meanings set
forth below.

 

1.1
“Accrued Obligations”
shall mean, as of any date, the aggregate Consulting Fees payable
to Consultant hereunder for the Services provided by Consultant as
of such date to the extent accrued but not previously
paid.

 

1.2
“Agreement” has the
meaning set forth in the introductory paragraph.

 

1.3
“Company” has the meaning
specified in the preambles.

 

1.4
“Confidential
Material” shall have the meaning set forth in
Section
4.1.

 

1.5
“Consulting
Fee” shall mean the monthly fee set forth in
Section 3.1
hereto.

 

1.6
“Effective
Date” has the meaning set forth in the introductory
paragraph.

 

1.7
“Fusion” has the meaning
set forth in the introductory paragraph.

 

1.8
“Person” shall mean an
individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, other
entity or governmental or other agency or political subdivision
thereof.

 

1.9
“Services” shall have the
meaning set forth in the first preamble.

 

1.10
“Term”
has the meaning specified in Section 2.2.

 

 

 

ARTICLE II

 

Consultancy Engagement

 

2.1 Engagement. Fusion hereby
engages Consultant to provide the Services during the Term, and
Consultant hereby agrees to perform the Services in accordance with
the terms and conditions set forth in this Agreement. Fusion
acknowledges and agrees that Consultant shall have discretion
concerning the location at which the Services will be performed.
Consultant shall take instructions from Kevin Brand, interim Chief
Executive Officer and Chief Operating Officer of Fusion, or such
other person as may be specified by him from
time-to-time.

 

2.2 Term. The term of this
Agreement shall commence on the Effective Date and shall continue
for a fixed period of six (6) months (the “Term”).

 

2.3 Performance. During the Term,
Consultant agrees to take such actions as are reasonably necessary
to provide the Services consistent with this engagement. Consultant
agrees to carry out his obligations hereunder honestly, equitably,
in good faith and in the best interests of Fusion and its
subsidiaries. Consultant further warrants that all Services will be
performed in a workmanlike and professional manner.

 

2.4 Independent Contractor Status.
Consultant shall perform the Services as an independent contractor
and nothing in this Agreement shall be deemed to create a
partnership, joint venture or fiduciary relationship between Fusion
and Consultant. Consultant shall at all times be acting as an
independent contractor and shall not be entitled to any benefits
that are currently, or which may, in the future, be made available
to employees of the Company, including, without limitation, holiday
pay, vacation pay, sick pay, group health insurance, life
insurance, stock options, retirement benefits, bonuses, or
workers’ compensation benefits, except as set forth in
Section 3.2. Consultant shall not, and shall not have the authority
to, enter into any contracts in the name of the
Company.

 

 

ARTICLE III

 

Remuneration

 

3.1 Consulting Fee. As
consideration for Consultant’s performance of the Services,
Fusion agrees to pay Consultant a fixed monthly fee of $83,333.33
(which fee excludes any out of pocket expenses that may be incurred
by Consultant in performing the Services) (the “Consulting
Fee”). Consultant agrees to invoice Fusion for the
Services on the 1st day of each month during the Term and Fusion
agrees to pay the applicable monthly invoice within five (5)
business days of receipt of such invoice.

 

3.2 
Health Insurance
Coverage. Consultant shall receive a cash payment equal to
the full premium for actively employed executives of the Company
with the same level of coverage for Consultant and his dependents,
payable monthly in accordance with the Company’s standard
payroll practices during the Term.

 

 

 

 

3.3 Materials/Access to Systems.
Consultant shall be responsible for all materials, instruments or
equipment (e.g., computer, cell phone) required to perform the
Services. Fusion shall arrange for access to any systems required
for Consultant to perform his duties under this
Agreement.

 

3.4 Reimbursement of Expenses.
Fusion agrees to reimburse Consultant for any reasonable
out-of-pocket expenses incurred by Consultant that are reasonably
necessary for Consultant to perform the Services and incurred in
accordance with this provision. All out of pocket expenses must be
incurred in accordance with Fusion’s existing expense policy.
Individual expense items must be approved by Fusion prior to being
incurred. All expenses must be itemized and documented with
receipts. Fusion agrees to reimburse Consultant for appropriately
incurred expenses within twenty (20) calendar days of their
submission to Fusion for payment.

 

ARTICLE IV

 

Covenants of Consultant

 

4.1 Nondisclosure of Confidential
Material. During the Term and for eighteen (18) months
thereafter, Consultant shall not divulge, communicate, use to the
detriment of the Company or for the benefit of any other person or
persons, or misuse in any way, any Confidential Information
pertaining to the business of the Company. Any Confidential
Information or data now or hereafter acquired by Consultant with
respect to the business of the Company shall be deemed a valuable,
special and unique asset of the Company that is received by
Consultant in confidence and as a fiduciary, and Consultant shall
remain a fiduciary to the Company with respect to all of such
information. For purposes of this Agreement, “Confidential
Information” means all material information about the
business of the Company disclosed to the Consultant or known by the
Consultant as a consequence of or through his prior employment by
the Company or his provision of Services to the Company (including
information conceived, originated, discovered or developed by the
Consultant) during the Term, and not generally known or readily
available to the public. The above restrictions shall not apply to:
(a) information that at the time of disclosure is in the public
domain through no fault of the Consultant; (b) information received
from a third party outside of the Company that was disclosed, to
Consultant’s knowledge, without a breach of any
confidentiality obligation; (c) information approved for release by
a written authorization of the Company; or (d) information that may
be required by law or an order of any court, agency, or proceeding
to be disclosed. For the avoidance of doubt, nothing herein is
intended to or shall prohibit Consultant from utilizing any
knowledge, information, business techniques and/or methods that
Consultant knew prior to his affiliation with the Company, or that
are generally known and used by persons with training and
experience comparable to that of Consultant, or that are common
knowledge in the industry. Moreover, nothing in this Agreement is
intended to or shall limit any party’s ability to (x) report
possible violations of federal securities laws to the appropriate
government enforcing agency and make such other disclosures that
are expressly protected under federal or state
“whistleblower” laws or (y) respond to inquiries from,
or otherwise cooperate with, any governmental or regulatory
investigation. Additionally, Consultant shall not be held
criminally or civilly liable under any federal or state trade
secret law for the disclosure of a trade secret that is made (i) in
confidence to a federal, state, or local government official, or to
an attorney, solely for the purpose of reporting or investigating a
suspected violation of law, or (ii) in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is
made under seal. If Consultant files a lawsuit for retaliation by
the Company for reporting a suspected violation of law, Consultant
may disclose the trade secret to Consultant’s attorney and
use the trade secret information in the court proceeding, if
Consultant files any document containing the trade secret under
seal and do not disclose the trade secret, except pursuant to court
order.

 

  

 

 

4.2 Non-solicitation. During the
Term, Consultant shall not directly or directly cause, for himself
or for any other business or entity he controls, owns, runs or for
which he serves as a senior officer or director, attempt to employ
or enter into any contractual arrangement with any employee of the
Company. Notwithstanding the foregoing, the provisions of this
Section
4.2 shall not be violated by (a) general advertising or
solicitation not specifically targeted at employees of the Company
or (b) actions taken by any person or entity with which Consultant
is associated if Consultant is not directly or personally involved
in any manner in such solicitation or recruitment and has not
identified such employee for recruiting or
solicitation.

 

4.3
Non-disparagement.
Consultant and the Company each agree that he or it, as applicable,
will not, directly or indirectly, individually or in concert with
others, engage in any conduct or make any statement that is likely
to have the effect of undermining or disparaging the reputation of
the Company or of the Consultant, or its or his good will,
products, or business opportunities, or that is likely to have the
effect of undermining or disparaging the reputation of any current
operating executive of the Company, the Company or the Consultant,
as applicable. Notwithstanding the foregoing, Consultant and the
Company may make true and accurate statements regarding the Company
or the Consultant, as applicable, in connection with any
investigation or potential or actual litigation or other legal
proceeding against or relating to Consultant or the Company arising
out of or relating to Consultant’s relationship with the
Company; provided, further, that the foregoing shall not restrict
Consultant from making true and accurate statements regarding the
Company in connection with any confidential discussions regarding
Consultant’s future employment or future investment
opportunities.

 

4.4 Enforcement.

 

(a) 
Consultant acknowledges that violation of the covenants set forth
in this Article IV
would cause the Company irreparable damage for which the Company
cannot be reasonably compensated in damages in an action at law,
and therefore upon any breach by Consultant of this Article IV, Fusion shall be
entitled to make application to a court of competent jurisdiction
for equitable relief by way of injunction or otherwise (without
being required to post a bond). Notwithstanding the foregoing, in
the event that Consultant violates any of the covenants set forth
in this Article IV,
the Company shall have no obligation to pay Consultant any unpaid
portion of the Consulting Fee. This provision shall not, however,
be construed as a waiver of any of the rights which the Company may
have for damages under this Agreement or otherwise, and all of the
Company’s rights and remedies shall be unrestricted. This
Article IV shall
survive termination of this Agreement for any reason
whatsoever.

 

(b)  If any
provision of this Agreement, or application to any person, place or
circumstance, shall be held by a court of competent jurisdiction or
be found in an arbitration proceeding to be invalid, unenforceable
or void, the remainder of this Agreement and such provisions as
applied to any person, place and circumstance shall remain in full
force and effect. It is the intention of Fusion and Consultant that
the covenants contained in this Article IV shall be enforced to
the maximum extent (but no greater extent) in time, area and degree
of participation as is permitted by the law of the jurisdiction
whose law is found to be applicable to the acts allegedly in breach
of this Agreement, and Fusion and Consultant hereby agree that the
court making any such determination shall have the power to so
reform this Agreement.

 

  

 

 

(c)  The
covenants contained in this Article IV are given by
Consultant as part of the consideration for this Agreement and as
an inducement to Fusion to enter into this Agreement and accept the
obligations hereunder.

 

4.5 Conflict. To the extent the
restrictive covenants contained in any other agreement between
Consultant and the Company are more restrictive than the
restrictive covenants contained in this Agreement, Consultant shall
be bound by the restrictive covenants in such other
agreement.

 

ARTICLE V

 

Termination

 

5.1 Termination of Agreement. This
Agreement shall terminate as provided in Section 2.2 hereof. This
Agreement may also be terminated by Fusion prior to the end of the
Term but, upon any such early termination, Fusion shall be
obligated to pay to Consultant, in a lump sum, all amounts that
would otherwise have been paid to Consultant during the Term. Such
lump sum payment shall be made by Fusion to Consultant within seven
(7) business days following the effective date of any such
termination.

 

ARTICLE VI

 

Miscellaneous

 

 

6.1 Limitation of Liability.
NEITHER PARTY SHALL BE LIABLE TO
THE OTHER PARTY, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE)
OR OTHERWISE HOWSOEVER ARISING FOR LOSS OF REVENUE, PROFIT,
GOODWILL, ANTICIPATED SAVINGS, DATA OR OTHER PURE ECONOMIC LOSS OR
ANY SPECIAL, INCIDENTAL, INDIRECT, PUNATIVE OR CONSEQUENTIAL
LOSSES, COSTS, LIABILITIES OR DAMAGES, WHETHER FORESEEABLE OR NOT,
ARISING OUT OF, OR IN CONNECTION WITH, THE PERFORMANCE OR
NON-PERFORMANCE OF ANY OBLIAGTIONS UNDER OR OTHERWISE RELATING TO
THIS AGREEMENT.

 

 

6.2 Binding Effect. This Agreement
shall be binding upon, and inure to the benefit of, the successors
and permitted assigns of Fusion and Consultant.

 

 

6.3 Notices. All notices, requests,
demands and other communications hereunder shall be in writing and
shall be deemed to have been duly given if delivered by hand or
mailed within the continental United States by first class
certified mail, return receipt requested, postage prepaid,
addressed as follows:

 

(a) 

If to Fusion,
to:

 

210 Interstate
North Parkway, Suite 300

Atlanta, Georgia
30339

 

Attention: General
Counsel

 

 

 

 

 

            

(b)            

If to Consultant,
to:

 

 
[●]

 

Any
such address may be changed by written notice sent to the other
parties at the last recorded address of the parties.

 

6.4 
Ownership of Work
Product. All Services performed hereunder and work produced
by Consultant for the Company shall become the sole property of the
Company and all rights, title and interest therein shall
automatically vest in the Company, and shall be deemed to be
“work made for hire” and made in the course of the
Services rendered hereunder

 

 

6.5
No Assignment; No Third
Party Beneficiaries. Except as otherwise expressly provided
in Section 6.2 hereof, this Agreement is not assignable by either
party, except that Consultant may assign this Agreement to an
entity controlled by Consultant. No payment to be made hereunder
shall be subject to alienation, sale, transfer, assignment, pledge,
encumbrance or other charge. No provision of the Agreement shall be
enforceable by any third party.

 

6.6 Execution in Counterparts. This
Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but both of which shall constitute one
and the same instrument.

 

6.7
Jurisdiction and Governing
Law. This Agreement shall be
governed by, and construed and enforced in accordance with, the
laws of the state of New York. Fusion and Consultant agree to
submit any dispute to the exclusive jurisdiction of the courts of
New York, New York.

 

6.8 Entire Agreement; Amendment.
This Agreement embodies the entire understanding of the parties,
and supersedes all other oral or written agreements or
understandings among them, regarding the subject matter hereof. No
change, alteration or modification hereof may be made except in
writing, signed by the parties hereto.

 

6.9 Headings. The headings in this
Agreement are for convenience of reference only and shall not be
construed as part of this Agreement or to limit or otherwise affect
the meaning hereof.

 

6.10 Survival. Notwithstanding
anything to the contrary herein, Article IV, Section 5.1 and this
Article VI shall
survive termination of this Agreement for any reason
whatsoever.

 

 

[Remainder of page left intentionally blank]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto
have executed and delivered this Agreement as of the Effective
Date.

 

 

FUSION CONNECT, INC.

 

 

 

By:
_________________________________

 

Name:
James P. Prenetta, Jr.

 

Title:
Executive Vice President and General Counsel

 

 

 

 

 

 

_________________________________

 

Name:
Matthew D. Rosen

 

 

 

 

 

  

 

 

Annex A -- Statement of Work

 

Consultant
shall be available, during normal business hours, to respond to
questions from Kevin Brand and/or his designee, the Company’s
Chief Financial Officer and the Company’s General
Counsel.Blueprint

Exhibit 10.2

 

RESIGNATION LETTER

 

Effective as of October 7, 2019 at
11:59 p.m., I, Russell P. Markman, resign from my position as
President and Chief Operating Officer of Fusion Connect, Inc.
(“Fusion”) and each of its
subsidiaries (collectively, the “Company”). This
resignation letter will not affect my employment status with the
Company, which will continue until my employment is formally
terminated by the Company. On the date upon which my employment is
formally terminated by the Company, (i) I will enter into the
consulting agreement in the form attached hereto as Exhibit A with Fusion and (ii)
I will be fully vested in, and be under no obligation to repay any
portion of, my key employee retention bonus payment in the
aggregate amount of $250,000.

 

In consideration of the
Company’s obligations under this letter agreement and for
other valuable consideration, I, and each of my heirs, executors,
administrators, representatives, agents, successors and assigns
(collectively, the “Releasors”) hereby
irrevocably and unconditionally release and forever discharge the
Company and its subsidiaries and affiliates (collectively, the
“Releasees”) from any and
all claims, actions, causes of action, rights, judgments,
obligations, damages, demands, accountings or liabilities of
whatever kind or character (collectively, “Claims”) arising after
the Company commenced voluntary cases under chapter 11 of title 11
of the United States Code, 11 U.S.C. §§ 101 et seq., in
the United States Bankruptcy Court for the Southern District of New
York (the “Chapter
11 filing”), including, without limitation, any Claims
under Title VII of the Civil Rights Act, as amended, the Americans
with Disabilities Act, as amended, the Family and Medical Leave
Act, as amended, the Equal Pay Act, as amended, the Employee
Retirement Income Security Act, as amended, the Civil Rights Act of
1991, as amended, the Worker Adjustment and Retraining Notification
Act, as amended, and any other Claims under any federal, state,
local or foreign law, that the Releasors may have, or in the future
may possess, arising out of (i) my employment with the Company and
the termination of such employment or (ii) any event, condition,
circumstance or obligation that occurred, existed or arose on or
after the date of the Chapter 11 filing; provided, however, that
the release set forth herein will not apply to any (i) Claims for
annual base salary or employee benefits provided pursuant to this
letter agreement or (ii) any Claims arising before the Chapter 11
filing, including but not limited to any claims I asserted or could
assert in any proof of claim filed in the Company’s chapter
11 cases. In consideration of the foregoing, I further agree to
vote in favor of the Second Amended Joint Chapter 11 Plan Of Fusion
Connect, Inc., And Its Subsidiary Debtors (as may be further
amended and together with the agreements and documents referenced
therein, the “Plan”) and to the
releases contained therein. To the extent I have asserted any
prepetition claims against the Company, the Company shall not seek
to reclassify such claims as post-petition claims subject to the
foregoing release.

 

 

 

 

 

Should the court fail to confirm
the Plan or the Company fail to emerge from chapter 11, the
obligations of the Company and me hereunder shall be null and void
ab initio; provided, however, that my resignation as President and
Chief Operating Officer shall remain effective and I will remain
fully vested in, and be under no obligation to repay any portion
of, my key employee retention bonus payment.

 

 

/s/
Russell P. Markman

Russell P.
Markman

 

 

Dated: October 7,
2019

 

 

 

AGREED AND
ACKNOWLEDGED:

 

FUSION CONNECT,
INC.

 

/s/
James P. Prenetta, Jr.

By: James P. Prenetta,
Jr.

Title: Executive Vice President
and

General Counsel

 

 

 

 

Exhibit A

 

Consulting
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT
(“Agreement”)
is made and entered into as of the ____ day of ______, 2019 (the
“Effective
Date”), between Fusion Connect, Inc.
(“Fusion”)
with an address at 210 Interstate North Parkway, Suite 300,
Atlanta, GA 30339 and Russell P. Markman, with an address at 500
Old Dairy Drive, Wake Forest, North Carolina 27587
(“Consultant”).

 

W I T N E S S E T H:

 

WHEREAS, Fusion desires to retain
Consultant to provide the services specified in the Statement of
Work attached hereto as Annex A
(collectively, the “Services”);

 

WHEREAS, Consultant is willing to
provide Fusion and its subsidiaries (collectively, the
“Company”)
with the Services on the terms, and subject to the conditions, set
forth herein; and

 

NOW, THEREFORE, Fusion and Consultant,
each intending to be legally bound, hereby mutually covenant and
agree as follows:

 

ARTICLE
I

 

Definitions

 

 

The following terms used in this
Agreement shall have the meanings set forth
below.

 

 

1.1 “Accrued Obligations”
shall mean, as of any date, the aggregate Consulting Fees payable
to Consultant hereunder for the Services provided by Consultant as
of such date to the extent accrued but not previously
paid.

 

1.2 “Agreement” has the
meaning set forth in the introductory
paragraph.

 

1.3 “Company” has the meaning
specified in the preambles.

 

1.4 “Confidential Material”
shall have the meaning set forth in Section
4.1.

 

1.5 “Consulting Fee” shall
mean the monthly fee set forth in Section 3.1
hereto.

 

1.6 “Effective Date” has the
meaning set forth in the introductory
paragraph.

 

1.7 “Fusion” has the meaning
set forth in the introductory paragraph.

 

1.8 “Person” shall mean an
individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, other
entity or governmental or other agency or political subdivision
thereof.

 

1.9 “Services” shall have the
meaning set forth in the first preamble.

 

1.10 “Term” has the meaning
specified in Section
2.2.

 

 

 

 

ARTICLE
II

 

Consultancy
Engagement

 

 

2.1 Engagement. Fusion hereby
engages Consultant to provide the Services during the Term, and
Consultant hereby agrees to perform the Services in accordance with
the terms and conditions set forth in this Agreement. Fusion
acknowledges and agrees that Consultant shall have discretion
concerning the location at which the Services will be performed.
Consultant shall take instructions from Kevin Brand, interim Chief
Executive Officer and Chief Operating Officer of Fusion, or such
other person as may be specified by him from
time-to-time.

 

2.2 Term. The term of this
Agreement shall commence on the Effective Date and shall continue
for a fixed period of three (3) months (the “Term”).

 

2.3 Performance. During the Term,
Consultant agrees to take such actions as are reasonably necessary
to provide the Services consistent with this engagement. Consultant
agrees to carry out his obligations hereunder honestly, equitably,
in good faith and in the best interests of Fusion and its
subsidiaries. Consultant further warrants that all Services will be
performed in a workmanlike and professional
manner.

 

2.4 Independent Contractor Status.
Consultant shall perform the Services as an independent contractor
and nothing in this Agreement shall be deemed to create a
partnership, joint venture or fiduciary relationship between Fusion
and Consultant. Consultant shall at all times be acting as an
independent contractor and shall not be entitled to any benefits
that are currently, or which may, in the future, be made available
to employees of the Company, including, without limitation, holiday
pay, vacation pay, sick pay, group health insurance, life
insurance, stock options, retirement benefits, bonuses, or
workers’ compensation benefits. Consultant shall not, and
shall not have the authority to, enter into any contracts in the
name of the Company.

 

 

ARTICLE
III

 

Remuneration

 

3.1 Consulting Fee. As
consideration for Consultant’s performance of the Services,
Fusion agrees to pay Consultant a fixed monthly fee of $33,334.00
(which fee excludes any out of pocket expenses that may be incurred
by Consultant in performing the Services) (the “Consulting
Fee”). Consultant agrees to invoice Fusion for the
Services on the 1st day of each month during the Term and Fusion
agrees to pay the applicable monthly invoice within five (5)
business days of receipt of such invoice.

 

3.2 Materials/Access to Systems.
Consultant shall be responsible for all materials, instruments or
equipment (e.g., computer, cell phone) required to perform the
Services. Fusion shall arrange for access to any systems required
for Consultant to perform his duties under this
Agreement.

 

3.3 Reimbursement of Expenses.
Fusion agrees to reimburse Consultant for any reasonable
out-of-pocket expenses incurred by Consultant that are reasonably
necessary for Consultant to perform the Services and incurred in
accordance with this provision. All out of pocket expenses must be
incurred in accordance with Fusion’s existing expense policy.
Individual expense items must be approved by Fusion prior to being
incurred. All expenses must be itemized and documented with
receipts. Fusion agrees to reimburse Consultant for appropriately
incurred expenses within twenty (20) calendar days of their
submission to Fusion for payment.

 

 

 

 

ARTICLE
IV

 

Covenants
of Consultant

 

4.1 Nondisclosure of Confidential
Material. During the Term and for eighteen (18) months
thereafter, Consultant shall not divulge, communicate, use to the
detriment of the Company or for the benefit of any other person or
persons, or misuse in any way, any Confidential Information
pertaining to the business of the Company. Any Confidential
Information or data now or hereafter acquired by Consultant with
respect to the business of the Company shall be deemed a valuable,
special and unique asset of the Company that is received by
Consultant in confidence and as a fiduciary, and Consultant shall
remain a fiduciary to the Company with respect to all of such
information. For purposes of this Agreement, “Confidential
Information” means all material information about the
business of the Company disclosed to the Consultant or known by the
Consultant as a consequence of or through his prior employment by
the Company or his provision of Services to the Company (including
information conceived, originated, discovered or developed by the
Consultant) during the Term, and not generally known or readily
available to the public. The above restrictions shall not apply to:
(a) information that at the time of disclosure is in the public
domain through no fault of the Consultant; (b) information received
from a third party outside of the Company that was disclosed, to
Consultant’s knowledge, without a breach of any
confidentiality obligation; (c) information approved for release by
a written authorization of the Company; or (d) information that may
be required by law or an order of any court, agency, or proceeding
to be disclosed. For the avoidance of doubt, nothing herein is
intended to or shall prohibit Consultant from utilizing any
knowledge, information, business techniques and/or methods that
Consultant knew prior to his affiliation with the Company, or that
are generally known and used by persons with training and
experience comparable to that of Consultant, or that are common
knowledge in the industry. Moreover, nothing in this Agreement is
intended to or shall limit any party’s ability to (x) report
possible violations of federal securities laws to the appropriate
government enforcing agency and make such other disclosures that
are expressly protected under federal or state
“whistleblower” laws or (y) respond to inquiries from,
or otherwise cooperate with, any governmental or regulatory
investigation. Additionally, Consultant shall not be held
criminally or civilly liable under any federal or state trade
secret law for the disclosure of a trade secret that is made (i) in
confidence to a federal, state, or local government official, or to
an attorney, solely for the purpose of reporting or investigating a
suspected violation of law, or (ii) in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is
made under seal. If Consultant files a lawsuit for retaliation by
the Company for reporting a suspected violation of law, Consultant
may disclose the trade secret to Consultant’s attorney and
use the trade secret information in the court proceeding, if
Consultant files any document containing the trade secret under
seal and do not disclose the trade secret, except pursuant to court
order.

 

4.2 Non-solicitation. During the
Term, Consultant shall not directly or directly cause, for himself
or for any other business or entity he controls, owns, runs or for
which he serves as a senior officer or director, attempt to employ
or enter into any contractual arrangement with any employee of the
Company. Notwithstanding the foregoing, the provisions of this
Section
4.2 shall not be violated by (a) general advertising or
solicitation not specifically targeted at employees of the Company
or (b) actions taken by any person or entity with which Consultant
is associated if Consultant is not directly or
personally involved in any manner
in such solicitation or recruitment and has not identified such
employee for recruiting or solicitation.

 

 

 

4.3 Non-disparagement. Consultant
and the Company each agree that he or it, as applicable, will not,
directly or indirectly, individually or in concert with others,
engage in any conduct or make any statement that is likely to have
the effect of undermining or disparaging the reputation of the
Company or of the Consultant, or its or his good will, products, or
business opportunities, or that is likely to have the effect of
undermining or disparaging the reputation of any current operating
executive of the Company, the Company or the Consultant, as
applicable. Notwithstanding the foregoing, Consultant and the
Company may make true and accurate statements regarding the Company
or the Consultant, as applicable, in connection with any
investigation or potential or actual litigation or other legal
proceeding against or relating to Consultant or the Company arising
out of or relating to Consultant’s relationship with the
Company; provided, further, that the foregoing shall not restrict
Consultant from making true and accurate statements regarding the
Company in connection with any confidential discussions regarding
Consultant’s future employment or future investment
opportunities.

 

4.4 Enforcement.

 

(a) Consultant acknowledges that
violation of the covenants set forth in this Article IV would cause the
Company irreparable damage for which the Company cannot be
reasonably compensated in damages in an action at law, and
therefore upon any breach by Consultant of this Article IV, Fusion shall be
entitled to make application to a court of competent jurisdiction
for equitable relief by way of injunction or otherwise (without
being required to post a bond). Notwithstanding the foregoing, in
the event that Consultant violates any of the covenants set forth
in this Article IV,
the Company shall have no obligation to pay Consultant any unpaid
portion of the Consulting Fee. This provision shall not, however,
be construed as a waiver of any of the rights which the Company may
have for damages under this Agreement or otherwise, and all of the
Company’s rights and remedies shall be unrestricted. This
Article IV shall
survive termination of this Agreement for any reason
whatsoever.

 

(b) If any provision of this Agreement,
or application to any person, place or circumstance, shall be held
by a court of competent jurisdiction or be found in an arbitration
proceeding to be invalid, unenforceable or void, the remainder of
this Agreement and such provisions as applied to any person, place
and circumstance shall remain in full force and effect. It is the
intention of Fusion and Consultant that the covenants contained in
this Article IV
shall be enforced to the maximum extent (but no greater extent) in
time, area and degree of participation as is permitted by the law
of the jurisdiction whose law is found to be applicable to the acts
allegedly in breach of this Agreement, and Fusion and Consultant
hereby agree that the court making any such determination shall
have the power to so reform this Agreement.

 

(c) The covenants contained in this
Article IV are
given by Consultant as part of the consideration for this Agreement
and as an inducement to Fusion to enter into this Agreement and
accept the obligations hereunder.

 

4.5 Conflict. To the extent the
restrictive covenants contained in any other agreement between
Consultant and the Company are more restrictive than the
restrictive covenants contained in this Agreement, Consultant shall
be bound by the restrictive covenants in such other
agreement.

 

 

 

 

ARTICLE
V

 

Termination

 

5.1 Termination of Agreement. This
Agreement shall terminate as provided in Section 2.2 hereof. This
Agreement may also be terminated by Fusion prior to the end of the
Term but, upon any such early termination, Fusion shall be
obligated to pay to Consultant, in a lump sum, all amounts that
would otherwise have been paid to Consultant during the Term. Such
lump sum payment shall be made by Fusion to Consultant within seven
(7) business days following the effective date of any such
termination.

 

ARTICLE
VI

 

Miscellaneous

 

6.1 Limitation of Liability.
NEITHER PARTY SHALL BE LIABLE TO
THE OTHER PARTY, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE)
OR OTHERWISE HOWSOEVER ARISING FOR LOSS OF REVENUE, PROFIT,
GOODWILL, ANTICIPATED SAVINGS, DATA OR OTHER PURE ECONOMIC LOSS OR
ANY SPECIAL, INCIDENTAL, INDIRECT, PUNATIVE OR CONSEQUENTIAL
LOSSES, COSTS, LIABILITIES OR DAMAGES, WHETHER FORESEEABLE OR NOT,
ARISING OUT OF, OR IN CONNECTION WITH, THE PERFORMANCE OR
NON-PERFORMANCE OF ANY OBLIAGTIONS UNDER OR OTHERWISE RELATING TO
THIS AGREEMENT.

 

6.2 Binding Effect. This Agreement
shall be binding upon, and inure to the benefit of, the successors
and permitted assigns of Fusion and Consultant.

 

6.3 Notices. All notices, requests,
demands and other communications hereunder shall be in writing and
shall be deemed to have been duly given if delivered by hand or
mailed within the continental United States by first class
certified mail, return receipt requested, postage prepaid,
addressed as follows:

 

(a)  If to Fusion,
to:

 

210
Interstate North Parkway, Suite 300

Atlanta, Georgia
30339

Attention: General
Counsel

 

(b) If to Consultant,
to:

 

500 Old Dairy
Drive

Wake Forest, NC
27587

   

 

 

 

Any such address may be changed by
written notice sent to the other parties at the last recorded
address of the parties.

 

6.4 Ownership of Work Product. All
Services performed hereunder and work produced by Consultant for
the Company shall become the sole property of the Company and all
rights, title and interest therein shall automatically vest in the
Company, and shall be deemed to be “work made for hire”
and made in the course of the Services rendered
hereunder

 

6.5 No Assignment; No Third Party
Beneficiaries. Except as otherwise expressly provided in
Section 6.2 hereof, this Agreement is not assignable by either
party. No payment to be made hereunder shall be subject to
alienation, sale, transfer, assignment, pledge, encumbrance or
other charge. No provision of the Agreement shall be enforceable by
any third party.

 

6.6 Execution in Counterparts. This
Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but both of which shall constitute one
and the same instrument.

 

6.7 Jurisdiction and Governing Law.
This Agreement shall be governed by,
and construed and enforced in accordance with, the laws of the
state of New York. Fusion and Consultant agree to submit any
dispute to the exclusive jurisdiction of the courts of New York,
New York.

 

6.8 Entire Agreement; Amendment.
This Agreement embodies the entire understanding of the parties,
and supersedes all other oral or written agreements or
understandings among them, regarding the subject matter hereof. No
change, alteration or modification hereof may be made except in
writing, signed by the parties hereto.

 

6.9 Headings. The headings in this
Agreement are for convenience of reference only and shall not be
construed as part of this Agreement or to limit or otherwise affect
the meaning hereof.

 

6.10 Survival. Notwithstanding
anything to the contrary herein, Article IV, Section 5.1 and this
Article VI shall
survive termination of this Agreement for any reason
whatsoever.

 

[Remainder of
page left intentionally blank]

 

 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed and
delivered this Agreement as of the Effective
Date.

 

 

FUSION CONNECT,
INC.

 

 

 

By:
_________________________________

 

Name: James P. Prenetta,
Jr.

 

Title: Executive Vice President and
General Counsel

 

 

 

 

 

 

_________________________________

 

Name: Russell P.
Markman

 

 

 

 

 

Annex A -- Statement of Work

 

 

 

Consultant shall be available,
during normal business hours, to respond to questions from Kevin
Brand and/or his designee regarding strategic questions relating to
sale and marketing activities of the Company.

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