Document:

Exhibit 10.6

 

SETTLEMENT AGREEMENT & RELEASE

 

This Settlement Agreement (“Agreement”) is made effective as of April 29, 2014 by and between John Moynahan, and RestorGenex Corporation (formerly Stratus Media Group, Inc.), ProElite, Inc. and Pro Sports & Entertainment, Inc. (collectively referred herein as “Company”).  John Moynahan and Company may be referred to herein individually as a “party” and collectively as “the parties.”

 

RECITALS

 

A.                                    John Moynahan has worked for the Company either as an employee or consultant since 2006. The Parties dispute, among other things, the amount of compensation and other monies owed to John Moynahan from the inception of his work through December 31, 2013. Said dispute includes, but is not limited to, stock grants or options, fringe benefits, bonuses, raises, vacation pay, expense reimbursement, salary and consulting fees. This agreement does not relate to any unpaid salary for work performed in 2014 or for approximately $12,000 in payroll taxes overwithheld in 2013 that are payable to John Moynahan in 2014 (“Overwitholdings”).

 

B.                                    John Moynahan and Company are desirous of adjusting and finally settling any and all existing or potential claims related to all monies and other compensation allegedly owed to John Moynahan (other than salary owed for 2014), contentions and disputes between each other related to said sums, such that a full, final and complete resolution of any claims between the parties may be effected.

 

C.                                    Company desires to be released from any present and potential liability or obligation and desires to compromise all disputes and claims arising between them based on or arising out of the monies and other compensation allegedly owed John Moynahan from the inception of his work for the Company through December 31, 2013, in consideration of the benefit to be received from avoidance of any further expenses and potential costs of litigation or arbitration and agree to enter into this Agreement.

 

D.                                    Although Company disputes any claims John Moynahan may allege for relief, damage, fees, costs, or expenses in connection with monies allegedly owed, the parties desire to avoid the risks and expenses attendant to litigation and to reach a compromise and settlement of all matters, claims, and causes of action on the terms described herein.  As set forth below, John Moynahan wish to forever release, waive, and discharge all claims whatsoever against Company resulting from, or in connection with monies and other compensation allegedly owed him through December 31, 2013, in exchange for the consideration set forth below as currently constituted as of the date of execution of this Agreement, and with no modifications now or in the future.

 

TERMS OF AGREEMENT

 

NOW, THEREFORE, for and in consideration of the foregoing Recitals, and of other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties to this Agreement agree as follows:

 

SETTLEMENT AGREEMENT

 

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1.                                      Payment.                                           (1) Company will deliver to John Moynahan a total of 59,250 shares of the Company’s restricted common stock (56,250 shares as settlement herein and 3,000 shares owed to John Moynahan under the terms of his employment agreement); and,

 

(2) $37,500 in cash within 20 days of the Company’s closing of at least $7,500,000 in equity financing.

 

2.                                      Release.  Except as to the rights and obligations created above in the Payment section, John Moynahan releases, acquits and forever discharges Company and its affiliated and subsidiary corporations, their predecessors, successors and assigns, and their officers, directors, agents, attorneys, employees, insurers and heirs from all claims, losses, causes of action, costs, expenses, attorneys’ fees, liability (whether statutory, equitable or legal), indemnities, subrogations, duties and any and all obligations of every nature, character and description whatsoever, at law or in equity, known or unknown, whether they ever had, now have, or may in the future have or acquire, arising out of, concerning, pertaining to, or connected with, any and every matter or things whatsoever, which occurred, were done, omitted or suffered to be done prior to the date hereof as they relate to any alleged monies or other compensation owed to John Moynahan from the inception of his work on behalf of the company through December 31, 2013, including, but not limited to, breach of contract, breach of the implied covenant of good faith and fair dealing, infliction of emotional harm, wrongful discharge, violation of public policy, defamation and impairment of economic opportunity; violation of the California Fair Employment and Housing Act, the California Labor Code, the California Constitution; and any claims for violation of the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, the Retirement Income Security Act of 1974, the Age Discrimination in Employment Act of 1967, the Older Workers’ Benefit Protection Act of 1990, the Americans With Disabilities Act of 1990, the Equal Pay Act of 1963, and any other Federal or State Law.

 

John Moynahan agrees to refrain and forebear from commencing, instituting, amending or prosecuting any lawsuit, action or other proceeding, judicial or administrative, of any kind whatsoever, except as expressly provided herein, against the other party, based upon suits, claims, disputes, demands, debts, judgments, liens, liabilities, obligations, losses, costs, expenses, attorneys’ fees, actions, or causes of action released by the terms of this Agreement, as they relate to the issues being released herein.

 

3.                                      Waiver of Civil Code § 1542.  Each and every party to this Agreement voluntarily and unconditionally waives each and every right which they, or any of them, may have under § 1542 of the Civil Code of the State of California, and any similar law of any state or territory of the United States.  Section 1542 provides:

 

C.C. § 1542.  CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE.  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

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4.                                      Further Documents/Acts.  Each and every party to this Agreement agrees to execute any further documents and accomplish such acts as may be necessary in order to give effect to any of the intentions expressed in this Agreement.

 

5.                                      Reliance on Advice of Counsel.  Each party to this Agreement further acknowledges by executing this Agreement that he, she or it has been advised to speak independently with counsel prior to executing this Agreement, and has had an adequate opportunity to consult with legal counsel prior to executing this Agreement, and that they have executed this Agreement with full knowledge of its meaning and effect.

 

6.                                      No Duress.  Each party hereto acknowledges that such party understands this Agreement and has entered into it of such party’s own free will and not under duress of any kind.

 

7.                                      Authorized Signatory.  Each of the undersigned represents and warrants, by executing this Agreement, that he is authorized to enter into this Agreement and agrees to be bound by all the terms and conditions of this Agreement.

 

8.                                      Modified Only by a Writing.  This Agreement may only be modified or changed by a writing signed by each and every party hereto.

 

9.                                      Construed Under California Law.  This Agreement shall be construed and interpreted according to the laws of the State of California

 

10.                               Venue.  The parties to this Agreement hereby agree that the proper venue for any lawsuit or other proceeding arising out of the terms of this Agreement or any party’s rights under this Agreement shall be Los Angeles County, California.

 

11.                               Effect of Separate Provisions. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall remain in full force and effect, and shall, in no way, be affected, impaired or invalidated.

 

12.                               Multiple Copies.  This Agreement may be executed in multiple copies, each of which shall be deemed to be an original.

 

13.                               Enforceability.  Pursuant to California Evidence Code section 1123, the Parties intend and agree that this Agreement shall be binding and enforceable at law and shall be admissible and subject to disclosure for such purposes.

 

14.                               Complete and Final Agreement. This Agreement contains the complete and final agreement between John Moynahan and Company regarding the issues set forth herein, and shall be binding upon and shall inure to the benefit of each party’s heirs, successors, legal representatives, parent, subsidiary and affiliated corporations, and their predecessors, successors and assigns.  The terms, conditions and agreements contained in this Agreement constitute the entire agreement between the parties hereto, and except as expressly stated herein, there are no other agreements, whether oral or written, between John Moynahan and Company.  No oral representations or agreements shall be considered as part of this Agreement, and this Agreement supersedes all prior and contemporaneous oral and written agreements and discussions.  This Agreement may be signed

 

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in counterparts with each counterpart being an original.  A facsimile signature shall be deemed an original signature.

 

ALL PARTIES HAVE READ THIS AGREEMENT COMPLETELY AND HAVE HAD THEIR ATTORNEYS EXPLAIN IT TO THEM.  JOHN MOYNAHAN FULLY UNDERSTAND THE CONSEQUENCES AND EFFECT OF THIS AGREEMENT AND THE SIGNIFICANCE ON THE RELEASE OF CLAIMS HEREIN.

 

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the year and date shown opposite his/her/its name.

 

	
DATED:   April 29, 2014
    	
John   Moynahan
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   John Moynahan
    
	
 
    	
 
    
	
 
    	
 
    
	
DATED:   April 29, 2014
    	
RESTORGENEX   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Tim Boris
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
Tim   Boris 
    	
 
    	
Print   name
    

 

4Exhibit 10.7

 

INDEPENDENT CONTRACTOR AGREEMENT

 

This Agreement is made and entered into as of May 28, 2014, by and between RestorGenex Corporation (hereinafter referred to as “Company”) and John Moynahan (hereinafter referred to as “Contractor”).

 

Company is in the pharmaceutical business, and in the conduct of said business desires to engage Contractor on an as-needed basis to perform certain finance and accounting services for Company.

 

Contractor desires and agrees to perform such services for Company under the terms set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, Company and Contractor agree as follows:

 

1.                                      Independent Contractor Status.  The parties agree and intend that this Agreement calls for Contractor to provide accounting services on a project basis for Company as an independent contractor.  Contractor is not an employee of Company and will not be considered an employee of Company for any purpose.  It is mutually understood and agreed that no work, act, commission or omission of any act by Contractor pursuant to the terms and conditions of this Agreement shall be construed to make or render the Contractor an employee of Company.  Furthermore, Contractor shall be entirely liable for his or her own debts and obligations and shall not, under any circumstances, hold himself out to be an employee of Company.

 

2.                                      Independent Contractor to Control Performance.  Company shall have no right or authority to direct or control Contractor with respect to the performance of Contractor’s duties under this Agreement, or with respect to any other matter, except as otherwise provided by this Agreement.  It is understood and agreed that Company is interested only in the results to be achieved by Contractor under this Agreement; the manner and method of performing all duties and services as Contractor under this Agreement and achieving the desired results shall be under the exclusive control of Contractor.  It is further understood that Contractor is free to contract with other companies to sell their products and/or services and/or provide consulting services.

 

3.                                      Duties of Contractor.  Upon receiving a written request, Contractor agrees to perform any and all accounting services requested or required of Contractor by Company and agrees to perform such services in a manner consistent with generally accepted methods, procedures and ethical standards applicable to his or her profession.  Company is free to assign or not to assign work to Contractor at its sole discretion, and nothing herein shall be deemed to require Company to utilize Contractor on any specific project or assignment.

 

4.                                           Term of Agreement.  This Agreement shall commence and become effective on May 28, 2014, and shall continue until terminated by either party who may terminate this Agreement with or without cause upon three (3) days’ written notice to the other party.  The parties expect that the initial term of this agreement will last approximately two (2) months.  Contractor understands and agrees that he will be available to work on the Project for the anticipated period of time.

 

5.                                           Compensation.

 

a.                                            Contractor shall be compensated by Company for services to be rendered under this Agreement at a rate of $175 per hour. Contractor shall be reimbursed for any expenses previously approved in writing by Company.  The Company agrees to make payments for services or reimbursement of expenses in a timely manner following receipt of statements of hours worked and expense reports.

 

 

b.                                      Contractor acknowledges that as an independent Contractor, he or she is not entitled to and will not receive any overtime compensation or benefits which Company may otherwise provide to its employees, including but not limited to medical insurance, life insurance, profit sharing or other retirement benefits, workers’ compensation and employment insurance.

 

c.                                       Contractor acknowledges that as an independent contractor, Contractor will be solely liable for any taxes or other payments which may be required by federal, state or local law to be deducted from any payments made to Contractor by Company under this Agreement.

 

d.                                      Contractor shall provide Company with written statements detailing the hours and work performed.

 

6.                                      Place of Performance of Services.  The services to be performed under this Agreement shall be performed at Contractor’s place of business.

 

7.                                      Materials and Equipment.  All materials and equipment required by Contractor to perform the services under this Agreement shall be furnished by Contractor at his or her expense, unless otherwise provided by Company.

 

8.                                      Trade Secrets and Confidential Information.  Contractor acknowledges and agrees that all books and records and other financial and business information (including, without limitation, all creations, data, information, intellectual property, personal or private information, know-how, show-how, processes, mock-ups, methods, practices, designs, specifications, yields, efficiencies, capacities, computer software, documentation, business and marketing plans, customer, price, and vendor lists as well as documentation of planned or existing projects) pertaining to Company’s business, whether prepared by Contractor or otherwise coming into Contractor’s possession, constitute confidential and/or trade secret information of Company and shall be the exclusive property of Company and shall be maintained in confidence (“Confidential Information”).  All Confidential Information shall be immediately returned to Company by Contractor upon termination of this Agreement.  If Contractor purchases any record book, ledger or similar item to be used for record keeping, Contractor shall notify Company and Company shall reimburse Contractor the reasonable cost thereof upon receipt of appropriate documentation.  Contractor shall not disclose or make any use and/or distribution whatsoever of Company’s Confidential Information, either directly or indirectly, either on his or her own account or for any other person, firm, association or corporation, except as may be required to carry out his or her duties herein.  Contractor covenants and agrees that if any such Confidential Information is disclosed to anyone despite Contractor’s diligent efforts to prevent such disclosure, Contractor shall promptly notify Company of any such disclosure and the person or persons to whom such disclosure has been made.

 

9.                                      Injunctive Relief.  In the event Contractor breaches any of the provisions, covenants or promises set forth in Paragraph 8, in addition to other relief to which Company may be entitled under Paragraph 8 of this Agreement, or other provisions of this Agreement, Company shall also be entitled to injunctive relief from a court of competent jurisdiction, enjoining the Contractor, his or her agents, attorneys, and all others acting on his behalf from any further actions in breach of this Agreement.

 

10.                               Indemnification of Company.  Contractor shall defend and indemnify Company against any and all liability or loss against all claims or actions based upon or arising out of injury to, or death of persons, or damage to or loss of property, caused by acts or neglect of Contractor in connection with the performance of services under this Agreement.

 

11.                               Prior Agreements Between Company and Contractor.  This Agreement represents the entire agreement between Company and Contractor.  It is the intention of the parties that this

 

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Agreement supersedes any and all prior verbal or written agreements or understandings between them regarding contracting or consulting services.

 

12.                               Governing Law.  This Agreement shall be governed by the laws of the State of California.

 

 

	
 
    	
/s/   John Moynahan
    
	
 
    	
John   Moynahan
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RestorGenex Corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tim Boris
    
	
 
    	
 
    	
Tim   Boris
    

 

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