Document:

Exhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is entered into and effective as of June 16, 2013, by and between Twin Cities Power
Holdings, L.L.C., a Minnesota Limited Liability Company, with its principal place of business at 16233 Kenyon Avenue, Suite 210,
Lakeville, Minnesota, 55044 (the “COMPANY”) and Wiley H. Sharp, III, an individual with his principal residence at
4979 Devonshire Circle, Shorewood, Minnesota 55331 (the “EMPLOYEE”). The COMPANY and EMPLOYEE are jointly referred
to as PARTIES (“PARTIES”).

 

		A.	The PARTIES wish to provide for the employment of the EMPLOYEE by the COMPANY;

 

		B.	The EMPLOYEE wishes to receive
                                                                     compensation from the COMPANY for the EMPLOYEE’s services,
                                                                     and the COMPANY wants reasonable protection for its confidential
                                                                     business and technical information that has been acquired
                                                                     and is being developed by the COMPANY at substantial expense.

 

	1.		Employment. Subject to all of the terms and conditions of this Agreement, the
COMPANY agrees to employ the EMPLOYEE as Vice President of Finance and Chief Financial Officer in the business of the COMPANY
and the EMPLOYEE accepts such employment.

 

	2.		Duties.

 

(a)The EMPLOYEE will devote
substantially all of his business hours to, and, during such time, make the best use of his energy, knowledge and training in
advancing the COMPANY’s interests. The EMPLOYEE will diligently and conscientiously perform the duties of the EMPLOYEE’s
position within the general guidelines to be determined by the COMPANY’s President. While the EMPLOYEE is employed by the
COMPANY, the EMPLOYEE will keep the COMPANY informed of any other business activities or outside employment and will promptly
stop any activity or employment that might conflict with the COMPANY’s interests or adversely affect the performance of
the EMPLOYEE’s duties for the COMPANY.

 

(b)Notwithstanding the above,
the EMPLOYEE shall be permitted, to the extent such activities do not substantially interfere with his performance of his duties
and responsibilities to (i) manage his personal, financial and legal affairs, (ii) serve on civic or charitable boards or committees,
(iii) serve on boards of other companies of organization that do not compete with the COMPANY or its subsidiaries in any shape
or form, and the EMPLOYEE shall be entitled to receive and retain all remuneration received by him from the items listed in clauses
(i) through (iii) of this paragraph.

 

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	3.		Term. The term of this Agreement shall commence on the date first written above
and continue unless terminated in accordance with Section 5 below.

 

	4.		Compensation.

 

(a) Salary. The COMPANY
agrees to pay the EMPLOYEE a monthly salary of $14,000.00 (the “Monthly Salary”), in equal semi-monthly installments,
and in arrears, in accordance with the standard payroll practices of the COMPANY. Within 30 days of the anniversary date of this
Agreement and within 30 days of every anniversary thereafter, during the term of this Agreement, the Base Salary will be reviewed
by the COMPANY considering both the EMPLOYEE’s performance and the performance of the COMPANY during the preceding calendar
year. If the EMPLOYEE’s Base Salary is adjusted by the COMPANY, such adjusted Base Salary shall then constitute the Base
Salary for all purposes under this Agreement.

 

(b)Benefits and Vacation.
The EMPLOYEE will be entitled to participate in all benefit plans adopted by the COMPANY to the extent that the terms of such
benefit plans permit the EMPLOYEE to participate. The EMPLOYEE will be entitled to twenty (20) days per year of personal time
off (“PTO”) and all legal holidays observed by the COMPANY, in each case, in accordance with the COMPANY’s policies
as in effect from time-to-time. In the event EMPLOYEE does not use all PTO for a given fiscal year, up to five days of unused
PTO may be carried over to the next fiscal year.

 

(c)Bonus. The EMPLOYEE
shall be entitled to a discretionary bonus as long as the COMPANY has sufficient profits to support management bonuses as determined
and approved by the Board of Governors.

 

(d)Expenses. The
EMPLOYEE shall be reimbursed monthly by the COMPANY for reasonable expenses which are incurred, documented and accounted for in
accordance with the COMPANY’s policies for the same.

 

(e)Severance. In
the event the EMPLOYEE is terminated by the COMPANY without cause, or as a result of death or disability, the EMPLOYEE shall be
entitled to payment of three (3) month’s salary and benefits as in effect on the date of such termination payable in accordance
with the normal payroll practice of the Company.

 

	5.		Termination. Subject to the respective continuing obligations of the COMPANY
and the EMPLOYEE under Sections 6 and 7 below:

 

(a)Employment At-Will.
Nothing in this Agreement is intended to establish any minimum period of the EMPLOYEE’s continuing employment, and such
employment continues to be on an “at-will” basis. The EMPLOYEE acknowledges that his employment with COMPANY is terminable
at-will at any time by either party.

 

(b)Termination for Cause.
The COMPANY may terminate this Agreement upon written notice to the EMPLOYEE for cause, which will include (i) dishonesty,
fraud, material and deliberate injury or attempted injury, in each case related to the COMPANY or its business, (ii) any unlawful
or criminal activity of a serious nature, (iii) any willful breach of duty or habitual neglect of duty or (iv) any breach of Sections
6 or 7 of this Agreement.

 

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(c)Termination for Death
or Disability. This Agreement will terminate upon the EMPLOYEE’s death or “permanent disability.” For purposes
of this Agreement the term “permanent disability” means the occurrence of an event which constitutes permanent and
total disability within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986.

 

	6.		Confidential Information.

 

(a)Prohibition on Use
of Confidential Information. The EMPLOYEE agrees not to directly or indirectly disclose or use at any time, either during
or subsequent to his employment by the COMPANY and any of its subsidiaries or affiliates (which obligation will survive indefinitely),
any code, software, technology, trade secrets, know-how, or other information, knowledge, or data possessed, used or licensed
by the COMPANY or to which the EMPLOYEE gains access in connection with his employment and which the COMPANY deems confidential,
proprietary or protected under grant of license or which the EMPLOYEE has reason to believe is confidential, proprietary or protected
under grant of license, except as such disclosure or use may be required in connection with his work for the COMPANY or unless
the EMPLOYEE first secures the written consent of the COMPANY. Upon termination of his employment, the EMPLOYEE will promptly
return to the COMPANY all originals and all copies of all property and assets of the COMPANY created or obtained by the EMPLOYEE
as a result of or in the course of or in connection with his employment with the COMPANY which are in the EMPLOYEE’s possession
or control, whether confidential or not, including, but not limited to, computer files, software programs, computer equipment,
correspondence, notes, memoranda, notebooks, drawings, customer lists, or other documents delivered to the EMPLOYEE concerning
any idea, product, apparatus, invention or process manufactured, used, developed, investigated, or marketed by the COMPANY during
the period of his employment.

 

(b)Third-Party Information.
The EMPLOYEE understands and acknowledges that the COMPANY has a policy prohibiting the receipt by the COMPANY of any confidential
information in breach of the EMPLOYEE’s obligations to third parties and does not desire to receive any confidential information
under such circumstances. Accordingly, the EMPLOYEE will not disclose to the COMPANY or use in the performance of any duties for
the COMPANY any confidential information in breach of an obligation to any third party. The EMPLOYEE represents that he has provided
the COMPANY with a copy of any agreement by which the EMPLOYEE is bound that restrict the EMPLOYEE’s use of any third party’s
confidential information and all such agreements are set forth on Exhibit “A” which is incorporated
herein.

 

(c)Survival. The
obligations of this Section 6 shall survive the termination of this Agreement.

 

 

 

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	7.		Twin Cities Companies Code of Conduct and Compliance Program.

 

(a)Code of Conduct.
The EMPLOYEE agrees to be bound by and comply with the Twin Cities Companies’ Code of Conduct and Compliance Program, as
it may be amended from time to time. The EMPLOYEE acknowledges and agrees that it is his responsibility to know the terms of the
program as in force from time to time and where the EMPLOYEE has any doubts to check with the Companies’ Compliance Officer
and to conduct his duties in conformity with the Officer’s directives.

 

(b)Survival. The obligations
of this Section 7 shall survive the termination of this Agreement.

 

	8.		Miscellaneous.

 

(a)Conflicts
of Interest. The EMPLOYEE agrees that he will not, directly or indirectly, transact business with the COMPANY personally,
or as an agent, owner, partner or shareholder of any other entity; provided, however, that any such transaction maybe entered
into if approved by the Board of the COMPANY.

 

(b) No Adequate Remedy.
The EMPLOYEE understands that if the EMPLOYEE fails to fulfill the EMPLOYEE’s obligations under this Agreement the damages
to the COMPANY would be very difficult to determine. Therefore, in addition to any other rights or remedies available to the COMPANY
at law, in equity, or by statute, the EMPLOYEE hereby consents to the specific enforcement of this Agreement by the COMPANY through
an injunction or restraining order issued by an appropriate court.

 

(c)Successors and Assigns.
This Agreement is binding on and inures to the benefit of the COMPANY’s successors and assigns, (all of which are included
in the term the “COMPANY” as it is used in this Agreement); provided, however, that the COMPANY may assign this Agreement
only in connection with a merger, consolidation, assignment, sale or other disposition of substantially all of its assets or business.

 

(d)Modification.
This Agreement may be modified or amended only by a written statement signed by both the COMPANY and the EMPLOYEE.

 

(e)Governing Law. The
laws of the State of Minnesota will govern the validity, construction and performance of this Agreement. Any legal proceeding
related to this Agreement will be brought in an appropriate Minnesota court, and both the COMPANY and the EMPLOYEE hereby consent
to the exclusive jurisdiction of that court for this purpose.

 

(f)Construction.
Wherever possible, each provision of this Agreement will be interpreted so that it is valid under the applicable law. If any provision
of this Agreement is to any extent invalid under the applicable law that provision will still be effective to the extent it remains
valid. The remainder of this Agreement also will continue to be valid, and the entire Agreement will continue to be valid in other
jurisdictions.

 

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(g)Waivers. No failure
or delay by either the COMPANY or the EMPLOYEE in exercising any right or remedy under this Agreement will waive any provision
of the Agreement. Nor will any single or partial exercise by either the COMPANY or the EMPLOYEE of any right or remedy under this
Agreement preclude either of them from otherwise or further exercising these rights or remedies, or any other rights or remedies
granted by any law or any related document.

 

(h)Captions. The
headings in this Agreement are for convenience only and do not affect this Agreement’s interpretation.

 

(i)Entire Agreement.
This Agreement supersedes all previous and contemporaneous oral negotiations, commitments, writings and understandings between
the PARTIES concerning the matters in this Agreement, including without limitation any policy or personnel manuals of the COMPANY.

 

(j)Notices. All notices
and other communications required or permitted under this Agreement will be in writing and will be hand delivered or sent by registered
or certified first class mail, postage prepaid, and will be effective upon delivery if hand delivered, or three (3) days after
mailing if mailed to the address stated at the beginning of this Agreement. These addresses may be changed at any time by like
notice.

 

(k)Counterparts and Copies.
This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which, taken together,
shall constitute one instrument. Physical or electronic copies of this Agreement will be as valid for all purposes as original
versions.

 

 

 

The COMPANY and the
EMPLOYEE have duly executed this Agreement as of the date first written above.

 

 

TWIN CITIES POWER HOLDINGS, L.L.C.

 

/s/ Timothy S. Krieger

By: Timothy S. Krieger

Its: President/CEO

 

EMPLOYEE

 

/s/ Wiley H. Sharp, III

By: Wiley H. Sharp, III

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EXHIBIT “A”

TO

EMPLOYMENT AGREEMENT

 

None

 

	 	EMPLOYEE:
	 	 
	 	/s/ Wiley H. Sharp, III
	 	 
	 	Wiley H. Sharp, IIIex10-1.htm

EXHIBIT 10.1

 

AMENDMENT #2 TO EMPLOYMENT AGREEMENT

ePlus inc. (the “Company”), a Delaware corporation, and Phillip G. Norton (the “Executive”) (collectively, “the Parties”) have previously entered into an Employment Agreement (the “Agreement”), effective October 1, 2011, and subsequent Amendment #1, effective August 1, 2012.  The Parties hereby agree to this Amendment #2 (“Amendment #2”), to be effective July 1, 2013.

1.           Paragraphs 5(a) and (b) of the Agreement shall be replaced in their entirety with the following:

	  	
(a)

	
Effective July 1, 2013, Executive shall receive a base annual salary of six hundred fifty thousand ($650,000 Dollars).  The salary will be reviewed by the Company’s Compensation Committee on an annual basis, beginning no later than July 31, 2012, and may be increased from time to time.

	  	  	  
	  	
(b)

	
Based on his MBOs and overall company performance the Executive shall be eligible to be considered for an annual bonus as set forth in the terms and conditions as outlined in the Executive Incentive Plan and any applicable award agreement thereunder.  The Company shall pay any bonus earned under this Section 5(b) no earlier than the end of the fiscal year for which earned and no later than the next September 30th following the Fiscal year in which the bonus was earned, provided that financial filings are timely provided to the Compensation Committee. In no event will any bonus earned under this Section 5(b) be paid later than the next December 31st following the fiscal year for which the bonus was earned, unless calculation of the bonus is not administratively practicable by that date, and further delay would not violate Code Section 409A.

2.           Paragraph 7(c)(2) of the Agreement shall be replaced in its entirety with the following:

	  	
2)

	
If, during the Employment Term, either the Company terminates Executive’s employment without Good Cause as described in Section 6(a) or Executive terminates his employment for Good Reason, as described in Section 6(b)(ii), then (a) the Company shall also pay Executive an amount equal to 2.2 times the Executive’s base salary; and (b) provided that the Executive remains eligible for and timely elects to continue his and any eligible dependants health benefits under COBRA, the Company shall also pay to the insurer the amount necessary for the Executive to continue medical and dental insurance for himself and his dependants through COBRA for a period of eighteen months after the Termination Date.  Should the Executive or any of his dependants become covered under another employer’s health benefit plan before the end of the eighteen month period, the Company will have no obligation to continue making such additional payments to the insurer.  The Executive shall not be obligated in any way to mitigate the Company’s obligations to him under this Section and any amounts earned by the Executive subsequent to his termination shall not serve as an offset to the payments due him by the Company under this Section. Any payment due to the Executive under this section 7(c)(2) shall be made in a lump sum within thirty (30) days following the termination of employment.

3.           Paragraph 20 of the Agreement shall be replaced in its entirety with the following:

 

	  	
20.

	
CODE SECTION 409A.  It is the intent of this Agreement to either meet an exception from or to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and any rulings and regulations promulgated thereunder (collectively, the “Code”), and any ambiguities herein will be so interpreted and this agreement will be so administered.  References to a termination of employment in Section 7 of this Agreement shall mean the date of a "separation from service" within the meaning of Code Section 409A(a)(2)(A)(i).  If the Executive is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) at the time of the Executive’s termination of employment, any nonqualified deferred compensation subject to Code Section 409A that would otherwise have been payable under this Agreement as a result of, and within the first six (6) months following, the Executive’s "separation from service" and not by reason of another event under Section 409A(a)(2)(A), will become payable six (6) months and one (1) day following the date of the Executive’s separation from service or, if earlier, the date of Executive’s death.  Any such “nonqualified deferred compensation” shall not be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment by creditors, or borrowing, to the extent necessary to avoid tax, penalties and/or interest under Section 409A of the Code.   The Company agrees that it will pay, indemnify and hold the Executive harmless for any additional tax or interest penalty payable amount by the Executive on account of a violation of Section 409A.  Any payment by the Company of such amount shall include a “gross-up” payment, which shall be the amount required to cause the net amount retained by the Executive after payment of all taxes, including taxes on the “gross-up” payment, to equal the amount of additional tax and interest penalty payable by the Executive on account of the violation of Section 409A.  Such payment shall be made by the Company within thirty (30) days of the date that Executive submits proof of payment of such taxes to the taxing authority and no later than the end of Executive’s taxable year next following the taxable year in which the Executive submits the respective taxes to the taxing authority.  The Executive agrees that the Company may amend this Agreement, with the consent of the Executive, as the Company determines is necessary or advisable so that payments made pursuant to this Agreement will not result in additional taxation of the Executive pursuant to the provisions of Section 409A of the Code.  The Executive agrees that he will not withhold his consent under this Section 20 if the proposed amendment does not materially adversely affect the Executive’s rights under this Agreement.

No other provision of the Agreement, or Amendment #1, is affected by this Amendment #2.

	
/s/ Phillip G. Norton

	  	
/s/ John E. Callies

	
Phillip G. Norton

	  	
John E. Callies

	
Chief Executive Officer and President

	
Compensation Committee, Chairman

	  	  
	
Date:  June 20, 2013

	  	
Date:  June 20, 2013

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