Document:

Unassociated Document

    AGREEMENT

     

    This
      Agreement (the “Agreement”) is made as of August 29, 2007 (the “Effective Date”)
      by and among Fortress International Group, Inc., a Delaware corporation (the
      “Company”), and Thomas P. Rosato (“Rosato”). 

     

    WITNESSETH:

     

    WHEREAS,
      the Company issued on January 19, 2007 a Convertible Promissory Note in the
      amount of $5,000,000 to the order of Rosato in connection with the acquisition
      of TSS/Vortech (the “Rosato Note”); and

    

    WHEREAS,
      the Rosato Note bears
      interest at six percent per year and has a term of five years; and

    

    WHEREAS,
      the interest
      on the Rosato Note is payable during the first two years of Rosato Note with
      principal payments commencing on the second anniversary of the note and
      continuing throughout the balance of the term of the note in equal quarterly
      installments of $416,667; and

    

    WHEREAS,
      the Company and Rosato desire to revise the repayment terms of the Rosato Note
      so as to retire $2,500,000 of the Rosato Note by paying Rosato $2,000,000 which
      is to be used by him to purchase securities of the Company pursuant to a trading
      10b5-1 Plan with a designated broker.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants, agreements and conditions
      set forth herein, the parties hereto hereby represent, warrant, covenant and
      agree as follows:

     

    1. Prepayment
      of Portion of Note.
      The
      Company hereby undertakes to pay down a portion of the Rosato Note in the amount
      of $2,000,000 as a prepayment of the Rosato Note and Rosato agrees that such
      prepayment shall retire $2,500,000 of the Rosato Note.

     

    2. Purchase
      of Company Securities.
      Rosato
      hereby agrees to use the $2,000,000 of funds received from the Company to
      purchase the Company’s publicly traded common stock and warrants pursuant to the
      10b5-1 Plan with a designated broker attached hereto as Exhibit
      A
      and in
      accordance with the conditions of Rule 10b-18 of the Securities Exchange Act
      of
      1934, as amended.

     

    3. Miscellaneous.
      

     

    (a) This
      Agreement shall be governed by the laws of the State of Maryland, without regard
      to principles of conflicts of laws.

     

    (b) Any
      notice, request, instruction or other document to be given hereunder by any
      party to the other shall be in writing and delivered personally or sent by
      certified mail, postage prepaid by telecopy, or by courier service.

     

    [Signature
      Pages Follow]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company and Rosato have executed this Agreement as of
      the
      date first written above.

     

    

    
      	 	
              FORTRESS
                INTERNATIONAL GROUP, INC.

            
	 	 
	 	 
	 	
              /s/
                Harvey L. Weiss

            
	 	
              By:
                Harvey L. Weiss

            
	 	
              Title:
                Chairman

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	
              THOMAS
                P. ROSATO

            
	 	 
	 	
              /s/
                Thomas P. Rosato

            

    

    

    

    
      
         

      

      
        
          2Unassociated Document

    EMPLOYMENT
      AGREEMENT

    

    This
      Agreement is made effective as of the 24th
      day of
      August, 2007 (the “Effective
      Date”),
      by and
      between DigitalFX
      International, Inc.
      a
      Florida corporation, with its principal place of business located at 3035 East
      Patrick Lane, Suite 9, Las Vegas, NV 89120 (the “Company”),
      and
Mickey
      Elfenbein
      an
      individual residing at 7038 Balsam Lane N, Maple Grove, MN 55369 (the
“Employee”).

    

    WHEREAS,
      Company
      has made an offer of employment to the Employee, and the Employee has accepted
      such offer of employment on the terms and conditions set forth herein;
      and

     

    WHEREAS,
      the
      parties desire to fix their respective rights and responsibilities as set forth
      in this Agreement.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants, terms and conditions
      hereinafter set forth, and for other good and valuable consideration receipt
      of
      which is specifically acknowledged, the parties hereto hereby agree as
      follows:

     

    Section
      1. EMPLOYMENT

     

    The
      Company hereby employs the Employee, and the Employee hereby accepts employment,
      as Chief Operating Officer of the Company. Employee shall commence service
      as
      the Chief Operating Officer of the Company on September 17, 2007.

     

    Section
      2. THE
      EMPLOYEE’S DUTIES

     

    The
      Employee’s duties shall include, without limitation, those customarily
      associated with the position of Chief Operating Officer. In performance of
      his
      duties, Employee shall report to the Chief Executive Officer. Such duties shall
      include but not be limited to include all responsibility and authority of the
      Company parent and subsidiary operations, marketing, personnel, business
      development, financial affairs, supervision of the business affairs of companies
      in which the Company has invested, and preparation of budgets to be approved
      by
      the Chief Executive Officer and the Board of Directors and the performance
      against those budgets.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Section
      3. COMPENSATION
      AND BENEFITS

     

    In
      consideration for all services rendered by the Employee to the Company, Company
      hereby agrees to pay compensation to the Employee as follows:

     

    a. During
      the term of this Agreement, the Company shall pay to the Employee, in accordance
      with the normal payroll practices of the Company, but no less frequently than
      twice each month, a base pay (“Base
      Salary”)
      of no
      less than Two Hundred Thousand Dollars ($200,000) per annum for a period
      commencing on the Effective Date and continuing until six months following
      the
      Effective Date (the “First Increase Date”); and no less than Two Hundred Fifty
      Thousand Dollars $250,000 per annum for the remainder of the Term of this
      Agreement. Increases of the Base Salary shall be reviewed annually and, if
      granted, shall be effective on the anniversary of the First Increase Date.
      In
      any event Employee shall be entitled to increases equal to double the CPI for
      the prior year. The Company shall make deductions and withholding from the
      amount payable to Employee as may be required by federal, state or local law.
      

     

    b. During
      the term of this Agreement, the Employee shall receive three (3) weeks (fifteen
      (15) business days) of paid vacation each year or such greater vacation, and
      such sick leave, life insurance, major medical and hospitalization insurance
      and
      such other benefits, if any, as may, from time to time, be provided by the
      Company to its Senior employees, in accordance with the Company’s plans,
      programs and policies. Executive shall take proper account of the Company’s
      needs when taking vacation. Upon expiration or termination of this Agreement,
      for any reason, the Company shall pay to the Employee in a lump sum the cash
      value of all accrued but unused vacation at the Employee’s then existing rate of
      Base Salary.

     

    c. In
      addition to the foregoing, contemporaneously with this Agreement, Employee
      will
      be granted an option to purchase 300,000 shares of the Company’s common stock,
      exercisable at a price of $3.80 per share in the form of the Stock Option
      Agreement attached as Exhibit
      A.
      Such
      option shall commence vesting on September 17, 2007 (the “Vesting Commencement
      Date”) and shall vest 33.4% upon the first anniversary of the Vesting
      Commencement Date, and 33.3% on each of the second and third anniversary of
      the
      Vesting Commencement Date. In the event of a Change in Control of the Company
      (as defined in the DigitalFX International, Inc. 2006 Stock Incentive Plan
      as in
      effect on the Effective Date of this Agreement (the “Plan”) any issued and
      unvested options shall immediately vest, notwithstanding anything to the
      contrary contained in Exhibit A or the Plan. In the event the Employee’s
      employment hereunder is terminated for any reason other than for Cause or upon
      the expiration of the Term of this Agreement, the Employee’s option shall vest
      with respect to an additional 50,000 shares of the Company’s common
      stock.

     

    d. Employee’s
      participation in the Company’s bonus pool with respect to each fiscal year shall
      be determined at the discretion of the Company’s Board of Directors. Employee
      shall present his recommendations with respect to the amount of the bonus pool
      to the Chief Executive Officer and the Board of Directors.

     

    e. Company’s
      insurance coverage shall include insurance as may be reasonably expected to
      be
      included but not be limited to:

    1.    Directors
      and Officers coverage as currently in effect.

    2.    Cyber
      Insurance as currently in effect, if any.

    3.    Employment
      Practices Liability Insurance, as currently in effect, if any.

    In
      the
      event any of the above coverages are not in effect, Employee shall have the
      authority to procure them.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Section
      4.  EXPENSES

     

    The
      Company shall reimburse the Employee for reasonable and necessary expenses
      incurred in the ordinary course of conducting Company’s business, upon
      submission of appropriate vouchers and receipts and approval thereof in
      accordance with Company policy. In addition, Company shall pay you a
      non-accountable amount to cover additional expenses, equal to $750.00 per
      month.

     

    Section
      5. DURATION
      AND TERMINATION

     

    a. Unless
      terminated earlier pursuant to Section 5(b) hereof, the Employee’s initial term
      of employment under this Agreement shall commence on the Effective Date and
      shall continue for a period of three years (the “Initial
      Term”).
      Employee’s employment under this Agreement shall thereafter automatically renew
      for successive one-year periods (a “Renewal Period”), unless either party shall
      give notice in writing to the other, no later than one hundred twenty days
      (120)
      days prior to the end of the Initial Term or the then current Renewal Period,
      if
      any, that such notifying party wishes to allow the Term of this Agreement to
      expire upon the end of the Initial Term or the then current Renewal Period,
      as
      applicable. The Initial Term plus any Renewal Periods shall be referred to
      herein, collectively, as the “Term”. 

     

    b. Notwithstanding
      the provisions of Section 5(a) above, the Employee’s employment hereunder shall
      terminate on the earliest of the following dates:

     

    (1) The
      date
      of death of the Employee; 

     

    (2) The
      date
      on which the Company shall have given the Employee written notice of the
      termination of his employment by reason of his physical or mental incapacity
      or
      disability on a permanent basis. For purposes of the Agreement the Employee
      shall be deemed to be physically or mentally incapacitated or disabled on a
      permanent basis if he is unable to materially and/or substantially perform
      his
      duties, with or without reasonable accommodations, hereunder for a period
      exceeding six (6) consecutive months or for a period of nine (9) months in
      any
      twelve (12) consecutive month period;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (3) Immediately
      upon the date the Company gives the Employee written notice of the termination
      of his employment for “Cause”.
      For
      purposes of the Agreement, “Cause” shall mean (i) the conviction of the Employee
      of a felony involving a sentence of incarceration for a period of time exceeding
      30 days; (ii) the conviction of an act by the Employee constituting fraud,
      embezzlement or other material financial dishonesty against the Company which
      constitutes a felony under the laws of the United States or the State of Nevada;
      (iii) willful failure by Employee to comply with a reasonable written direction,
      instruction or requirement of the Board of Directors or the CEO of the Company
      which failure, refusal or neglect, if curable, is not fully and completely
      cured
      to the reasonable satisfaction of the Company upon thirty
      (30)
      days’
prior written notice to Employee; or (iv) breach of the confidentiality and
      non-competition agreement attached hereto as Exhibit B.   

     

    (4) Thirty
      (30) days after the date on which the Company shall have given the Employee
      written notice of the termination of his employment, other than upon the
      expiration of this Agreement. 

     

    (5) Thirty
      (30) days after the date on which the Employee shall have given the Company
      written notice of the termination of his employment.

    

    Notwithstanding
      the foregoing, in the event the Employee does not commence providing services
      as
      the Chief Operating Officer of the Company on September 17, 2007, this Agreement
      and the option granted concurrently shall be null, void and of no further force
      and effect.

     

    Section
      6. PAYMENTS
      AND OTHER RIGHTS UPON TERMINATION

     

    a. Death
      or Disability.
      If the
      Employee’s employment is terminated due to death or disability pursuant to
      Sections 5(b)(1) or (2) hereof, the Employee (or in the event of death, his
      estate or beneficiaries) shall be entitled to the Base Salary earned through
      the
      date of the Employee’s death, or the date of the Employee’s termination for
      disability pursuant to Section 5(b)(2) hereof, as the case may be; and accrued
      vacation and other employment benefits through the date of termination of
      employment.

     

    b. Termination
      of Employment for Cause or by Employee (other than a Constructive
      Termination).
      If the
      Company terminates the Employee’s employment for Cause pursuant Section 5(b)(3)
      or if the Employee terminates his employment for any reason other than
      Constructive Termination (as defined in Section 6(d) below), the Employee shall
      be entitled only to the Base Salary through the date of the Employee’s
      termination for “Cause” pursuant to Section 5(b)(3) hereof and accrued vacation
      and other employment benefits through the date of termination of his employment
      and any other benefits legally required to be paid to the Employee.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    c. Termination
      of Employment by the Company for Reasons Other Than Death, Disability or
      Cause.
      If,
      during the term of this Agreement, the Company terminates the Employee’s
      employment pursuant to Section 5(b)(4) or if there occurs a Constructive
      Termination of Employee (as defined in Section
      6(d)
      below),
      Employee shall be entitled to receive, and Company shall pay with the notice
      of
      termination, the Base Salary earned through the date of the Employee’s
      termination and accrued vacation and other employment benefits through the
      date
      of termination of employment. In addition, the Company shall pay to the Employee
      an amount equal to Employee’s then current base salary for a period equal to
      twelve (12) months (the “Severance
      Pay Period”),
      payable in accordance with the Company’s customary payroll practices. In
      addition, Company shall continue for the Employee’s benefit, for the Severance
      Pay Period at the Company’s expense, all major medical, hospitalization and
      health benefits, covering the Employee and Employee’s family immediately prior
      to his employment termination, or if earlier, until the date that the Employee
      commences other employment pursuant to which the Employee receives comparable
      major medical, hospitalization and health benefits. 

     

    d. In
      the
      event that Employee terminates his employment hereunder as a result of the
      Company: (i) relocating and requiring Employee to work at another location
      twenty (20) miles or more from the current location of the Company, or (ii)
      the
      Company shall have reduced Employee’s Base Salary in effect at that time, (iii)
      the Company shall have materially reduced Employee’s responsibilities, the
      Company shall be deemed to have constructively terminated Employee’s employment
      (“Constructive
      Termination”).
      Employee shall provide the Company written notice of such action, and shall
      only
      be entitled terminate his employment for Constructive Termination if the Company
      fails to cure such action within 30 days of such notice.

    

    e. In
      the
      event that the Employee’s employment hereunder terminates upon the expiration of
      this Agreement at the end of the Initial Term or any Renewal Term (the
“Expiration”), the Employee shall be entitled only to the Base Salary and bonus,
      if any, through the date of the Expiration hereof, and accrued vacation and
      other employment benefits through the date of termination of his employment
      and
      any other benefits legally required to be paid to the Employee. 

     

    f.
       Notwithstanding
      anything to the contrary contained in this Agreement, the Stock Option
      Agreement, or the Company’s 2006 Stock Incentive Plan, as amended from time to
      time, the Employee or Employee’s Estate shall have a minimum of six (6) months
      from the date that Employee’s employment is terminated (for any reason by either
      party, other than termination for Cause by the Company, in which event the
      options may terminate earlier) to exercise any vested but unexercised stock
      options.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Section
      7. RELOCATION

    

    It
      is
      understood that Employee will relocate from his current residence to Las Vegas,
      NV. In connection with such relocation Company shall pay to Employee an amount
      of up to $55,000 (the “Moving Allowance”), to be applied to costs (“Moving
      Expenses”) related to such move including without limitation the
      following:

    a.    All
      costs
      relating to the sale of Employee’s current residence such as closing costs, and
      realtors fees.

    b.    All
      closing costs relating to the Purchase by Employee of a residence in Las
      Vegas.

    c.    The
      costs
      relating to packing, transporting, unpacking, and temporary storage of Employees
      household if required.

    d.    Temporary
      family lodging if required.

    e.    Up
      to
      three trips to Las Vegas for Employee’s spouse and daughter for the purpose of
      locating a residence.

    f.    The
      cost
      associated with transporting Employee’s family from Minnesota to Las
      Vegas.

    g.    Temporary
      living accommodations for Employee in Las Vegas as may be required.

    h.    A
      reasonable number of airline trips for Employee between Las Vegas and Minnesota
      until Employee’s family relocates to Las Vegas.

    The
      first
      $27,500 of the Moving Allowance shall be paid to Employee upon the Effective
      Date; and an amount up to the balance of the Moving Allowance shall be paid
      to
      Employee upon earlier of (i) submission of documentation with respect to a
      scheduled closing of the purchase of a house in the Las Vegas metropolitan
      area,
      which purchase would require funding of the down payment by Employee from the
      Moving Allowance, or (ii) submission of appropriate vouchers and receipts for
      other Moving Expenses and approval thereof by Company. Employee agrees that,
      in
      the event that Employee terminates his employment hereunder other than as a
      result of Constructive Termination, Death or Disability, then Employee shall
      reimburse Company for any amount paid to Employee as part of the Moving
      Allowance; provided that this reimbursement obligation shall be prorated over
      the first two years of the Initial Term, down to $0 on the second anniversary
      of
      the Effective Date.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      8. INDEMNIFICATION

     

    Company
      and its affiliates, parent, subsidiaries, successors, and assigns, shall
      indemnify and hold Employee harmless from and against all claims, lawsuits,
      damages, attorney’s fees, court costs, expenses, awards, and losses
      (collectively, “Damages”) arising out of or in connection with Employee’s
      performance of his duties under this Agreement, to the fullest extent
      permissible under Nevada law. This Section shall survive the termination or
      expiration of this Agreement for any reason. 

     

    Section
      9. GOVERNING
      LAW, DISPUTE RESOLUTION

     

    THE
      PROVISIONS OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
      IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, WITHOUT REGARD TO THE
      CONFLICTS OF LAWS PRINCIPLES THEREOF. Any controversy or dispute between any
      of
      the parties to the Agreement arising out of any of the terms, provisions, or
      conditions of the Agreement shall be submitted to arbitration in CLARK COUNTY,
      Nevada, or another location agreed to by the parties. The arbitration shall
      be
      heard before a retired Judge of the Clark County Superior Court, or from other
      judicial jurisdiction agreed to by the parties. The arbitration shall be held
      before a single arbitrator and shall be binding with no right of appeal. In
      the
      event that either party initiates arbitration pursuant to the
      section, each party shall pay one-half of the fees and costs of the
      arbitration. The prevailing party shall have the right, at the discretion of
      the
      arbitrator, to recover its share of the arbitration fees and costs. The
      arbitration shall be conducted pursuant to the Judicial Arbitration Rules of
      Court. The parties shall agree to the appointment of the arbitrator within
      ten
      business days after the request for arbitration is received. If the parties
      are
      unable to agree, either party may seek the appointment of an arbitrator from
      the
      Clark County Superior Court. The parties shall be entitled to reasonable
      discovery, including the production of documents and other items, provided,
      that
      the arbitrator may limit discovery in connection with a dispute as appropriate
      to achieve the prompt and efficient disposition of the dispute while giving
      full
      regard to the legitimate needs of the parties for discovery; provided, however,
      that in no event shall such discovery process exceed a period of 60 days, unless
      the arbitrator extends such period for good cause. The decision of the
      arbitrator may be entered for judgment in any appropriate court in Clark County,
      Nevada. 

     

    Section
      10. ENTIRE
      AGREEMENT

     

    The
      Agreement supersedes and cancels any and all prior agreements between the
      parties hereto, express or implied, relating to the subject matter hereof.
      The
      Agreement sets forth the entire agreement between the parties hereto. It may
      not
      be changed, altered, modified or amended except in a writing signed by both
      parties.

     

    Section
      11. NON-WAIVER

     

    The
      failure or refusal of either party to insist upon the strict performance of
      any
      provision of the Agreement or to exercise any right in any one or more instances
      or circumstances shall not be construed as a waiver or relinquishment of such
      provision or right.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    Section
      12. ASSIGNMENT/NON-ASSIGNMENT

     

    Any
      transfer or assignment of the Agreement and/or rights hereunder by Company
      shall
      be subject to Employee’s prior written consent; provided that the Company shall
      be permitted to assign this Agreement without Employee’s consent to any
      corporation that is the surviving corporation in a merger with Company, or
      any
      purchaser of all or substantially all of the assets or equity of the Company,
      .
      The Employee shall have no right to assign any of the rights, nor to delegate
      any of the duties, created by the Agreement, and any assignment or attempted
      assignment of the Employee’s rights, and any delegation or attempted delegation
      of the Employee’s duties, shall be null and void. In all other respects, the
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective heirs, beneficiaries, personal representatives,
      successors, officers and directors.

    Section
      13. SEVERABILITY

     

    If
      any
      paragraph, term or provision of the Agreement shall be held or determined to
      be
      unenforceable, the balance of the Agreement shall nevertheless continue in
      full
      force and effect unaffected by such holding or determination to the fullest
      extent permitted by law as though such paragraph, term or provision had been
      written in such a manner and to such an extent as to be enforceable under the
      circumstances.

     

    Section
      14. NOTICE

     

    All
      notices hereunder shall be in writing. Notices may be delivered personally,
      or
      by certified mail return receipt requested, postage prepaid, to the addresses
      set forth on the first page hereof. Either party may designate a new address
      for
      purposes of the Agreement by notice to the other party in accordance with the
      paragraph.

     

    IN
      WITNESS WHEREOF,
      the
      parties have set their signatures hereto as of the date first written
      above.

     

     

    
 

    
      	DIGITALFX INTERNATIONAL,
              INC. 	MICKEY
              ELFENBEIN
	 	 
	 	 
	By: /s/ Craig Ellins            	/s/ Mickey Elfenbein            
	
              Craig
                Ellins, 

              Chief
                Executive Officer

            	 

    

    
 

    
      
        
        

      

      
        8

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