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  Exhibit 10.3

 

SEPARATION AGREEMENT

 

THIS AGREEMENT (this “Agreement”),
is made and entered into as of November 8, 2018 (the
“Effective
Date”), by and between Fusion LLC (formerly known as Network
Billing Systems, LLC (the “Company”)
and Gordon Hutchins, Jr. (“Executive”).

 

WHEREAS, the Company and Executive
desire to enter into a separation agreement, which shall define and
modify the rights and obligations of Executive as a result of the
termination of his services to the Company and each other
subsidiary of Fusion Connect, Inc. (collectively hereinafter
referred to as “Fusion
Group”).

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants herein contained, and for other
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and Executive hereby agree as
follows:

 

SECTION
1. Acknowledgement of the
Parties. The parties acknowledge that Executive’s
employment with the Company will end on November 8, 2018 and that,
as of such date, he will no longer hold any positions with the
Fusion Group, including that of President (the “Separation
Date”). Executive shall be paid his base compensation
through the Separation Date. Consistent with the Company policies
and practices now in effect, should any claim arise in the future
relating to or arising from Executive’s service in any
director or officer position, Executive will be defended,
indemnified and held harmless under the terms of the
Indemnification Agreement between Executive and the Company, dated
March 6, 2006; provided that such indemnification rights shall be
no less than on the same terms and conditions as any other director
or officer, including all rights and protections under the
applicable director and officer insurance policies.

 

SECTION
2. Compensation and
Benefits; Stock Options; Company Equipment; Unemployment
Benefits.

 

(a)           
Separation
Payments. Subject to Executive (i) not revoking this
Agreement during the period specified in Section 4(a)(iv)(D), and (ii)
assuming that Executive is not in breach of his obligations in
Section 3 hereof,
the Company and Executive agree that, from the Separation Date
through and including June 8, 2019 (the “Severance Benefit
Period”), separation payments totaling $160,416.66
(exclusive of applicable tax withholdings) will be paid to
Executive ratably over the Severance Benefit Period.

 

(b)           Benefits.
Except as otherwise provided herein and except for medical, dental
and vision coverage that end on October 31, 2018, Executive's
participation in all retirement and welfare benefit plans and
programs maintained by the Fusion Group will cease on November 8,
2018; except, however, that (i) Executive is eligible
to continue medical, dental and vision coverage for himself and his
spouse and any eligible dependents under the Company’s
benefit plans in accordance with the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”) and (ii) Executive, his
spouse and any eligible dependents may continue to participate in
such benefit plans as a terminated but vested employee (or eligible
dependent thereof) in accordance with the terms of such benefit
plans. If Executive elects to enroll in COBRA, the Company will pay
the cost of the COBRA coverage to continue medical, dental and
vision coverage in effect on the Separation Date for himself and
his spouse and any eligible dependents under the Company’s
benefit plans for a period of eighteen (18) months, ceasing on May
31, 2020, after which Executive will be responsible for the cost of
continued coverage. Except as specifically provided in this
Agreement, Executive acknowledges and agrees that he is not
entitled to receive any other payments or benefits of any
kind.

 

 

 

 

(c)           Stock
Options. Executive is a participant in the Fusion
Telecommunications International, Inc. 2009 Stock Option Plan, as
amended, and the Fusion Connect, Inc. 2016 Equity Incentive Plan,
as amended, and has certain vested and unvested options to
purchase, in the aggregate, 114,899 shares of common stock of
Fusion Connect, Inc. (collectively, the “Options”).
All unvested Options held by Executive shall automatically vest and
become exercisable on the Separation Date and Executive shall be
entitled to exercise all of his Options (at their specified
exercise price) for the shorter of (i) a period of three
hundred sixty-five (365) days following the Separation Date and
(ii) the remainder of the applicable Option’s full term.
Executive acknowledges that any Options previously designated as
incentive stock options will not qualify for such treatment as a
result of the preceding sentence.

 

(d)           Accrued
and Unused Vacation. The Company shall pay Executive for all
accrued and unused vacation time that Executive has earned through
and including the Separation Date according
to the records of the Company. Such amount is subject to all
applicable federal and state tax withholding
obligations.

 

(e)          
Business Expenses.
Executive shall be entitled to receive reimbursement, in accordance
with the Company’s standard expense reimbursement policy and
practice, for all reasonable expenses incurred by Executive in the
performance of his duties through the Separation Date upon
submission of reasonable documentation or receipt.

 

(f)           
On-going
Cooperation. To ensure a smooth transition of his duties and
responsibilities, during the Severance
Benefit Period Executive agrees to be available, at mutually
agreeable times, by phone, to answer questions from Russell Markman and/or James P.
Prenetta, Jr. on matters with which Executive was familiar
during his employment. This obligation
shall not exceed five (5) hours in any given month during the
Severance Benefit Period. Executive shall have no other
ongoing obligations for the Company other than to answer such
questions.

 

(g)          
Company
Equipment. On or prior to the
Separation Date, Executive shall return all property belonging to
the Fusion Group in his possession, custody or control, including,
without limitation, Company issued phones (cell phone and Polycom
phones), keys, security cards, electronically stored information
and all Fusion Group documents and materials.

 

(h)           Unemployment
Benefits. The Company will not
contest Executive’s receipt of unemployment compensation
provided he is otherwise eligible for such
benefits. 

 

SECTION
3. Restrictive
Covenants.

 

(a)           Confidential
Information. Executive agrees
that he shall hold in a confidential manner for the benefit of the
Fusion Group, all trade secrets and confidential or proprietary
information relating to the Fusion Group and its businesses and
investments, which he obtained during his employment
(“Confidential
Information”).
Confidential Information shall not include information which is
generally available public knowledge (other than by his acts in
violation of this Agreement) or is not maintained by the Company as
confidential. Except as may be required by law or any legal
process, or as is necessary in connection with any adversarial
proceeding against the Fusion Group (in which case Executive shall
use his reasonable best efforts in cooperating with Fusion Group in
Fusion Group’s actions to obtain a protective order against
disclosure by a court of competent jurisdiction). Consistent with
the prior sentence, Executive shall not, without the prior written
consent of the Company, communicate or divulge any Confidential
Information to anyone other than the Fusion Group and those
designated by the Fusion Group. Notwithstanding the nondisclosure
obligations set forth herein, pursuant to 18 USC § 1833(b),
Executive may not be held criminally or civilly liable under any
federal or state trade secret law for disclosure of a trade secret
or Confidential Information that is made (i) in confidence to a
government official, either directly or indirectly, 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.

 

 

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(b)           
Non-Solicitation of
Customers/Employees. Executive agrees that for a period of
one (1) year following the Separation Date, he will not, on behalf
of himself or on behalf of any other person, directly or
indirectly, (i) solicit any person that is a customer, client or
has or had, within the prior twenty four (24) months, a contractual
relationship with the Fusion Group to discontinue, terminate,
cancel or refrain from doing business with the Fusion Group, or in
any way interfere with the business relationship between such
person and the Fusion Group, or (ii) solicit any person that, as of
the Separation Date is an employee or officer of the Fusion Group,
to terminate his or her employment with the Fusion
Group.

 

(c)           
Covenant Not to
Compete. Executive will not, at any time, during the
Severance Benefit Period, either directly or indirectly, engage in,
with or for any enterprise, institution, whether or not for profit,
business, or company, competitive with the Business (as defined
herein) of the Fusion Companies as such Business is conducted on
the date thereof, as a creditor, guarantor, or financial backer,
stockholder, director, officer, consultant, advisor, employee,
member, or otherwise of or through any corporation, partnership,
association, sole proprietorship or other entity; provided, that an
investment by Executive, his spouse or his children is permitted if
such investment is not more than four percent (4%) of the total
debt or equity capital of any such competitive enterprise or
business. As used in this Agreement, the “Business” of
the Companies shall be deemed to include the provision of any form
of traditional communications services, Internet based video
conferencing services, Unified communications as a service
(“UCaaS”),
clouding computing, cloud connectivity, cloud storage, cloud
security and software as a service (“SaaS”),
provided that such services shall have been offered by the Company
as of the Separation Date. The foregoing prohibition shall not
prevent Executive’s employment or engagement after the
Severance Benefit Period (a) by any entity as long as the
activities of such employment or engagement do not involve work on
matters related to the Business or (b) by an investment fund that
invests in entities engaged in the Business so long as Executive is
not employed or engaged as an executive officer or director of such
entity engaged in the Business.

 

(d)           
Non-Disparagement.
The parties acknowledge and agree that they will not defame or make
any false representations or disparaging remarks about or in any
other way attempt to damage or impair the reputation of the other
party (in the case of any Fusion Group member, meaning any of its
executives, officers, members, employees, directors or
investors).

 

(e)           
Miscellaneous.
Executive acknowledges and agrees that the remedy at law available
to the Company for breach of any of Executive’s obligations
under this Section
3 may be inadequate, and that damages flowing from such a
breach may not readily be susceptible to being measured in monetary
terms. The Company acknowledges and agrees that the remedy at law
available to Executive for a breach of the obligations under
Section 3 by it may
be inadequate, and that damages flowing from such a breach may not
readily be susceptible to being measured in monetary terms.
Accordingly, Executive and the Company acknowledge, consent and
agree that, in addition to any other rights or remedies which they
may have at law, in equity or under this Agreement, upon the
other’s violation of the applicable provisions of this
Section 3, the
non-breaching party shall be entitled to seek immediate injunctive
relief and may seek a temporary order restraining any threatened or
further breach, without the necessity of proof of actual
damage.

 

 

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If it
is established in a judicial forum that Executive has violated this
Section 3, the
applicable restrictive period set forth herein shall not run in
Executive’s favor from the time of the commencement of any
such violation until such time as Executive cures such violation to
the satisfaction of the Company.

 

SECTION
4. Release.
Executive acknowledges and agrees that his right to receive
payments and Benefits under this Agreement is subject to his
execution of this Agreement (provided that he does not subsequently
revoke the release in this Section 4(a)).

 

(a)           
Release of Claims by
Executive.

 

(i)           
In exchange for and in consideration of the Severance Payments
and/or benefits that Executive shall receive under Sections 2(a)
through 2(c) of this Agreement (the “Benefits”),
Executive, on behalf of himself and his agents, representatives,
administrators, receivers, trustees, estates, heirs, devisees,
assignees, legal representatives, and attorneys, past or present
(as the case may be), hereby irrevocably and unconditionally
releases, discharges, and acquits all the Released Parties (as
defined below) from any and all claims, promises, demands,
liabilities, contracts, debts, losses, damages, attorneys’
fees and causes of action of every kind and nature, known and
unknown, arising out of Executive’s employment with the
Company, up to the Effective Date, including but not limited to
causes of action, claims or rights arising out of, or which might
be considered to arise out of or to be connected in any way with
(i) Executive’s employment with the Company or the
termination thereof; (ii) any treatment of Executive by any of the
Released Parties, which shall include, without limitation, any
treatment or decisions with respect to hiring, placement,
promotion, discipline, work hours, demotion, transfer, termination,
compensation, performance review, or training; (iii) any statements
or alleged statements by the Company or any of the Released Parties
regarding Executive, whether oral or in writing; (iv) any damages
or injury that Executive may have suffered, including without
limitation, emotional or physical injury, compensatory damages, or
lost wages; (v) employment discrimination, which shall include,
without limitation, any individual or class claims of
discrimination on the basis of age, disability, sex, race,
religion, national origin, citizenship status, marital status,
sexual preference, or any other basis whatsoever; or (vi) all such
other claims that Executive could assert against any, some, or all
of the Released Parties in any forum, whether such claims are known
or unknown, accrued or unaccrued, suspected or unsuspected,
liquidated or contingent, direct or indirect; provided,
however, that any claims arising after the Effective Date from the
then present effect of acts or conduct occurring before the
Effective Date shall be deemed released under this Agreement. This
release includes but is not limited to rights and claims arising
under Title VII of the Civil Rights Act, the Age Discrimination in
Employment Act, the Older Workers Benefit Protection Act of 1990,
the Americans with Disabilities Act, the Genetic Information
Nondiscrimination Act, the Family and Medical Leave Act, the
Virginia Civil Rights Act, the Virginia Whistleblower Statute, and
any state leave or workers’ compensation retaliation law.
Notwithstanding the foregoing, the provisions of this Section 4(a)(i) do not apply
to, and Executive does not release the Company or any other
Released Party in respect of (i) any claims arising under this
Agreement, (ii) any rights, benefits or claims Executive has or may
have as the holder of any equity securities issued by the Company
and/or the Fusion Group; (iii) any rights and/or claims under the
Company’s employee benefit plans pursuant to COBRA; (iv) any
claims that the law does not permit Executive to release; (v) any
claim arising after the Effective Date; and (vi) any claim or right
to indemnification of Executive in his capacity as an officer of
the Fusion Group and any other related rights Executive may have
under New Jersey or Virginia State law, the certificate of
formation or operating agreement of the Company or any insurance
policy maintained by the Company (collectively, the
“Excluded
Claims”).

 

 

 

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(ii)           
Subject to the foregoing Section 4(a)(i), the foregoing release shall be
construed as broadly as possible and shall also extend to release
the Released Parties, without limitation, from any and all claims
that Executive has alleged or could have alleged, whether known or
unknown, accrued or unaccrued, suspected or unsuspected against the
Company or any Released Party which Executive may have to recover
money, or damages of any kind, or to reinstatement as a result of
any actions, claims, complaints or charges brought by him or on his
behalf under any federal, state or common law.

 

The
term “Released
Parties” or “Released
Party” as used herein shall mean and include: the
Company, and its parent, subsidiaries, affiliates, and all of their
predecessors and successors (collectively, the “Released
Entities”), and with respect to each such Released
Entity, all of its former, current, and future officers, directors,
agents, managers, representatives, employees, owners, shareholders,
members, partners, joint venturers, attorneys, insurers,
administrators and fiduciaries, and any other persons acting by,
through, under, or in concert with any of the persons or entities
listed herein.

 

(iii)           Nothing
in this Agreement shall preclude Executive from filing or
prosecuting a charge or complaint, participating in an
investigation or proceeding or otherwise communicating with any
federal, state or local government or regulatory agency, including
those charged with the enforcement of employment discrimination
laws such as the Equal Employment Opportunity Commission or similar
state agency. It is further agreed that no term or provision of
this Agreement shall be construed to limit Executive’s right
to accept an incentive award, if eligible, from the Securities and
Exchange Commission pursuant to Rule 21F-17 of the Securities
Exchange Act of 1934, as amended.

 

(iv)           Pursuant
to the Older Workers Benefit Protection Act, Executive understands
and acknowledges that by executing this Agreement and releasing all
claims against any of the Released Parties, he has waived any and
all rights or claims that he has or could have against any Released
Party under the Age Discrimination in Employment Act or similar
laws, which includes any claim that any Released Party
discriminated against Executive on account of his age. Executive
also acknowledges the following:

 

(A) 

The Company, by
this written Agreement, has advised Executive to consult with an
attorney prior to executing this Agreement;

 

(B) 

This Agreement does
not include claims arising after the Separation Date, provided, however, that any claims
arising after the Separation Date from the then-present effect of
acts or conduct occurring before the Separation Date shall be
deemed released under this Agreement;

 

(C) 

The Company has
provided Executive the opportunity to review and consider this
Agreement for a period of at least twenty-one (21) days from the
date he receives this Agreement. At Executive’s option and
sole discretion, he may waive the twenty-one (21) day review period
and execute this Agreement before the expiration of twenty-one (21)
days. If Executive elects to waive the twenty-one (21) day review
period, Executive acknowledges and admits that he was given a
reasonable period of time within which to consider this Agreement
and his waiver is made freely and voluntarily, without duress or
any coercion by any other person; and

 

 

-5-

 

 

(D) 

Executive may
revoke the provisions of this Section 4(a)(iv) within a
period of seven (7) days after execution of this Agreement.
Executive agrees that any such revocation is not effective unless
it is made in writing and delivered to the Company, to the
attention of the Vice President, Human Resources and
Administration, by the end of the seventh (7th) calendar day. Under
any such valid revocation, Executive shall not be entitled to the
benefits granted under Sections 2(a) through 2(c) as consideration
for Executive’s Release in Section 4. The provisions of this
Section 4(a)(iv)
will become effective on the eighth (8th) calendar day after this
Agreement is executed by both parties.

 

(v)           
Executive confirms that no claim, charge, or complaint against any
of the Released Parties, brought by him, exists before any federal,
state, or local court or administrative agency. Executive hereby
waives his right to accept any relief or recovery, including costs
and attorney’s fees, from any charge or complaint before any
federal, state, or local court or administrative agency against any
of the Released Parties, except in respect to Excluded Claims or as
such waiver is prohibited by law.

 

(vi)          
With respect to any claim released under this Section 4(a),
Executive agrees that he will not, unless otherwise prohibited by
law, at any time hereafter, participate in as a party, or permit to
be filed by any other person on his behalf or as a member of any
alleged class of persons, any action or proceeding of any kind,
against the Released Parties or any past, present or future
Executive benefit and/or pension plans or funds of the Released
Entities with respect to any act, omission, transaction or
occurrence up to and including the Separation Date, except in
respect of Excluded Claims. Executive further agrees that he will
not seek or accept any award or settlement from any source or
proceeding with respect to any claim or right covered by this
paragraph of this Agreement and that this Agreement shall act as a
bar to recovery in any such proceedings.

 

(vii)         
Executive agrees that neither this Agreement nor the furnishing of
the consideration for the general release set forth in this
Agreement shall be deemed or construed at any time for any purpose
as an admission by any Released Parties of any liability or
unlawful conduct of any kind. Executive further acknowledges and
agrees that the consideration provided for herein is adequate
consideration for Executive’s obligations under this
Agreement.

 

(viii)        
If Executive executes this Agreement prior to the Separation Date,
Executive agrees that he will sign the release attached hereto as
Annex
A on the Separation Date. If Executive does not sign
Annex
A at such time, the Company and Executive will be relieved
of all of their respective obligations hereunder and this Agreement
shall be null and void.

 

 

-6-

 

 

(b)           
Release of Claims by
Company. Subject to the provisions of this Agreement and
subject to Executive not exercising his revocation rights
hereunder, the Company, on behalf of itself and other members of
the Fusion Group, and the Released Parties hereby release Executive
and his family members, heirs, executors, personal representatives,
successors and assigns from any and all claims, promises, demands,
contracts, losses, debts, obligations, rights, suits, damages,
actions, causes of action of every kind and nature,
attorneys’ fees, remedies, and liabilities whatsoever,
whether known or unknown, foreseen or unforeseen, suspected or
unsuspected existing as of the Separation Date, in law, at equity,
or otherwise (except for willful misconduct, gross negligence, or
breach of fiduciary duty that results in a personal monetary profit
to Executive at the expense of the Company) that the Company, any
Released Party or any other member of the Fusion Group would have
been legally entitled to assert in its own right or that any other
person or entity would have been able to assert on behalf of the
Company, any Released Party or any other member of the Fusion
Group, based in whole or in part upon any act or omission,
transaction, agreement, event, or other occurrence related to the
Company, any Released Party or any other member of the Fusion
Group, taking place before and on the Separation Date, provided,
however, any claims arising after the Effective Date from the then
present effect of acts or conduct occurring before the Effective
Date shall be deemed released under this Agreement.

 

SECTION
5. Miscellaneous.

 

(a)           
Applicable Law.
This Agreement is entered into under, and shall be governed for all
purposes by, the laws of the Commonwealth of Virginia without
giving effect to any choice of law principles which could cause the
application of the laws of another jurisdiction.

 

(b)           
No Waiver. No
failure by either party at any time to give notice of any breach by
the other party of, or to require compliance with, any condition or
provision of this Agreement shall (a) be deemed a waiver of similar
or dissimilar provisions or conditions at the same or at any prior
or subsequent time, or (b) preclude insistence upon strict
compliance in the future.

 

(c)           
Severability. If a
court of competent jurisdiction determines that any provision of
this Agreement is invalid or unenforceable, then the invalidity or
unenforceability of that provision shall not affect the validity or
enforceability of any other provision of this Agreement, and all
other provisions shall remain in full force and effect and such
invalid or unenforceable provision shall be reformulated by such
court to preserve the intent of the parties. If any portion of the
release set forth in Section 4(a) of this Agreement
is declared to be unenforceable by a court of competent
jurisdiction in any action in which Executive participates or
joins, Executive agrees that all consideration paid to him under
this Agreement shall be offset against any monies that he may
receive in connection with any such action.

 

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

 

(e)           
Headings. The
paragraph headings have been inserted for purposes of convenience
and shall not be used for interpretive purposes.

 

 

 

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(f)           
Plurals. Wherever
the context so requires, the singular number includes the plural
and conversely.

 

(g)           
Assignment. This
Agreement is binding on Executive and the Company and their
successors and assigns; provided, however, that the rights and
obligations of the Company under this Agreement may be assigned to
a successor entity. In the event of the merger, consolidation,
transfer or sale of all or substantially all of the assets of the
Company or any similar event, this Agreement shall, subject to the
provisions hereof, be binding upon and inure to the benefit of such
successor, and such successor shall discharge and perform all of
the promises, covenants, duties and obligations of the Company
hereunder. No rights or
obligations of Executive hereunder may be assigned by Executive to
any other person or entity, except by will or the laws of descent
and distribution. In the event of Executive’s death prior to
receipt by Executive of all amounts payable by the Company
hereunder, such amounts shall be payable to Executive’s
designated beneficiaries on the same schedule as provided for in
this Agreement.

 

(h)           
Entire Agreement.
Except as otherwise specifically provided herein, this Agreement
constitutes the entire agreement of the parties with regard to the
subject matter hereof, contains all of the covenants, promises,
representations, warranties and agreements between the parties and
supersedes all prior agreements between Executive and the Company
or any of its predecessors or affiliates, including but not limited
to any change in control or severance benefit plan or arrangement
and any bonus plan or arrangement. Except as otherwise provided
herein, each party acknowledges that no representation, inducement,
promise or agreement, oral or written, has been made by either
party, or by anyone acting on behalf of either party, which is not
embodied herein, and that no agreement, statement, or promise
created hereby, that is not contained in this Agreement, shall be
valid or binding. Any modification of this Agreement will be
effective only if it is in writing and signed by both
parties.

 

(i)           
Choice of Forum.
Any and all disputes relating to or arising from this Agreement
shall be brought exclusively in the federal or state courts with
jurisdiction over Fairfax County, Virginia, and the parties hereby
expressly represent and agree that they are subject to personal
jurisdiction of said courts, and each of the parties hereby
irrevocably consents to the jurisdiction of such courts in any
legal or equitable proceedings related to such dispute and waives,
to the fullest extent permitted by law, any objection which it may
now or hereafter have that the laying of venue of any legal
proceedings related to such dispute which is brought in any such
court is improper or that such proceedings should have been brought
in an inconvenient forum.

 

(j)           
Construction. This
Agreement shall be interpreted without regard to the identity of
the drafter and shall not be construed for or against either
party.

 

(k)           No
Jury Trial. By signing below, Executive waives his right to
a jury trial.

 

(l)           
Taxes/Tax
Withholding. The Company does not make any representation or
warranty with respect to the tax consequences of any consideration
or other actions under this Agreement or otherwise. Executive shall
be solely responsible for all income taxes, capital gains, use,
sales or similar taxes and payments due to governmental authorities
with respect to all consideration provided for hereunder that have
not been deducted by the Company. The Company may withhold from
amounts payable to Executive hereunder any federal, state, city or
other taxes the Company is required to withhold pursuant to any law
or government regulation or ruling.

 

 

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(m)           
Notices. For
purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have
been duly given when personally delivered or when mailed by United
States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows: to Executive – 1446
Harvest Crossing Drive, McLean, VA 22101 and to the Company –
13921 Park Center Rd., Suite 200, Herndon, VA 20171.

 

(n)           
Confidentiality.
The parties agree that the terms and conditions of this Agreement
are confidential and that each will not, without the express prior
written consent of the other party, in any manner publish,
publicize, disclose or otherwise make known or permit or cause to
permit or cause to be known such terms and conditions as anyone
(other than such party’s financial advisors and legal
advisors who agree not to disclose such terms), except as required
by law or in any proceeding to enforce the terms of this Agreement.
Executive shall be permitted to disclose such terms and conditions
to his family members and personal advisors.

 

(o)           Section
409A. This Agreement is intended to comply with Section 409A
(“Section
409A”) of Internal Revenue Code of 1986, as amended
(the “Code”)
or an exemption thereunder and shall be construed and administered
in accordance with Section 409A. Notwithstanding any other
provision of this Agreement, payments provided under this Agreement
may only be made upon an event and in a manner that complies with
Section 409A or an applicable exemption. Any payments under this
Agreement that may be excluded from Section 409A either as
separation pay due to an involuntary separation from service or as
a short-term deferral shall be excluded from Section 409A to the
maximum extent possible. For purposes of Section 409A, each
installment payment provided under this Agreement shall be treated
as a separate payment. Any payments to be made under this Agreement
upon a termination of employment shall only be made upon a
“separation from service” under Section 409A.
Notwithstanding any other provision of this Agreement, if any
payment or benefit provided to the Executive in connection with his
termination of employment is determined to constitute
“nonqualified deferred compensation” within the meaning
of Section 409A and the Executive is determined to be a
“specified employee” as defined in Section
409A(a)(2)(b)(i) of the Code, then such payment or benefit shall
not be paid until the first payroll date to occur following the
six-month anniversary of the Executive’s separation from
service or, if earlier, on the Executive’s death (the
“Specified Employee
Payment Date”). The aggregate of any payments that
would otherwise have been paid before the Specified Employee
Payment Date shall be paid to the Executive in a lump sum on the
Specified Employee Payment Date and thereafter, any remaining
payments shall be paid without delay in accordance with their
original schedule.

 

SECTION
6. Executive
Acknowledgements.

 

Executive
acknowledges that:

 

(a)           
He has read and understands the terms of this Agreement and has
voluntarily agreed to these terms without coercion or undue
persuasion by the Company or any officer, director or other agent
thereof;

 

(b)           
He has been encouraged by the Company to seek competent legal
counsel in his review and consideration of this Agreement and its
terms; and

 

(c)           
This Agreement does not purport to waive, and does not waive, any
rights Executive may have which arise after the Separation
Date.

 

 

[remainder
of page intentionally left blank]

 

 

-9-

 

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement on the day and year first above
written.

 

FUSION
LLC

 

 

By:
/s/ Kelly
Beckner

Name:
Kelly Beckner

Title:
VP, Human Resources and Administration

 

 

EXECUTIVE

 

 

/s/ Gordon Hutchins, Jr.

Gordon
Hutchins, Jr.

 

 

WITH
RESPECT TO SECTION 2(c) ONLY:

 

 

FUSION CONNECT,
INC.

 

 

By:
/s/ Kelly
Beckner

                                                                 

Name: Kelly
Beckner

Title:
VP, Human Resources and Administration

 

 

 

 

Annex A – Release

 

Release of Claims by Gordon Hutchins, Jr.

 

(a)       
Release.
 Subject to the satisfaction by Fusion Connect, Inc. (the
“Company”) of
every obligation under the Separation Agreement, dated November 8,
2018 (the “Agreement”),
between the Company and Gordon
Hutchins, Jr. (the “Executive”), including, but not
limited to, the full satisfaction of the payment obligations under
Section 2 thereof,
Executive hereby releases and absolutely and forever discharges the
Company, and its parent, subsidiaries, affiliates, and all of their
predecessors and successors and with respect to each of such
parties all of its former, current and future officers, directors,
managers, representatives, employees, servants, owners,
shareholders, members, partners, joint venturers, attorneys,
insurers, administrators, and fiduciaries, and any other persons
acting by, through, under, or in concert with any of the persons or
entities listed herein (collectively referred to as the
“Released
Parties”), from any and all suits, demands, damages,
causes of action, contracts, and any and all claims in law or in
equity, whether now known or unknown, arising out of
Executive’s employment with the Company, which he, his heirs,
executors, administrators or assigns, have or may have against the
Released Parties, including, but expressly not limited to, any
claims which he may have to recover, or share in the recovery of,
money or damages of any kind, or to reinstatement as a result of
any actions, claims, complaints or charges brought by him or on his
behalf under any federal, state or common law.

 

           
Executive understands and acknowledges that by executing this
release and releasing all claims against any of the Released
Parties arising prior to the date of this release, he has waived
any and all rights or claims that he has or could have against any
Released Party under Title VII of the Civil Rights Act, the Age
Discrimination in Employment Act, the Older Workers Benefit
Protection Act of 1990, the Americans with Disabilities Act, the
Genetic Information Nondiscrimination Act, the Family and Medical
Leave Act, the Virginia Civil Rights Act, the Virginia
Whistleblower Statute, and any state leave or workers’
compensation retaliation law.

 

           
Executive also acknowledges the following:

 

(i)        
The Company has advised Executive to consult with an attorney prior
to executing the Agreement and this release.

 

(ii)       
This release does not include claims arising after the date of its
execution Date, provided, however, that any claims
arising after the date hereof from the then-present effect of acts
or conduct occurring before the date hereof shall be deemed
released hereunder;

 

(iii)      
The Company has given Executive the opportunity to review and
consider the Agreement for a period of at least twenty-one (21)
days from the date he received the Agreement.  At
Executive’s option and sole discretion, he was permitted to
waive the twenty-one (21) day review period and execute the
Agreement before the expiration of twenty-one (21) days.  If
Executive elected to waive the twenty-one (21) day review period,
Executive acknowledges and admits that he was given a reasonable
period of time within which to consider the Agreement and his
waiver is made freely and voluntarily, without duress or any
coercion by any other person.

 

 

A-1

 

 

(iv)    Executive
may revoke this release within a period of seven (7) days after its
execution by Executive.  Executive agrees that any such
revocation is not effective unless it is made in writing and
delivered to the Company, to the attention of Kelly Beckner, Vice
President, Human Resources and Administration, 13921 Park Center
Rd., Suite 200, Herndon, VA 20171 or her
successor, by the end of the seventh (7th) calendar day. 
If Executive revokes this release, the Company will be relieved of
all of its obligations under the Agreement and Executive shall be
obligated to pay back to the Company any amounts previously paid
under Section 2 thereof.

 

 

(v)       
Executive confirms that he has brought no claims, charges, or
complaints against any of the Released Parties before any federal,
state, or local court or administrative agency.  However,
nothing in the Agreement or this release shall be construed as
prohibiting Executive from filing a charge with, or participating
in any investigation or proceeding conducted by, the Equal
Employment Opportunity Commission or a comparable state or local
agency.  Executive hereby waives his right to accept any
relief or recovery, including costs and attorney’s fees, from
any charge or complaint before any federal, state, or local court
or administrative agency against any of the Released Parties,
except to the extent that such waiver is prohibited by
law.   

 

(vi)      
Except as otherwise provided in subparagraph (v) above, Executive
agrees he will not voluntarily participate in any judicial
proceeding of any nature or description against any Released
Parties that in any way involves any allegations and facts arising
out of Executive’s employment with the Company that he could
have raised against any Released Parties as of the date
hereof.

 

(vii)     
Executive agrees that neither the Agreement, this release nor the
furnishing of the consideration for the general release set forth
in the Agreement or this release shall be deemed or construed at
any time for any purpose as an admission by any Released Parties of
any liability or unlawful conduct of any kind.  Executive
further acknowledges and agrees that the consideration provided for
in the Agreement is adequate consideration for Executive’s
obligations under the Agreement and this release.

 

           
(b)      Excluded Claims. 
Executive does not release any Released Party in respect of (i) any
claims arising under the Agreement, (ii) any rights, benefits or
claims Executive has or may have as the holder of any equity
securities issued by the Company and/or the Fusion Group, (iii) any
rights and/or claims under COBRA, (iv) any claims that the law does
not permit Executive to release, (v) any claim or right to
indemnification of Executive in his capacity as an officer of the
Company or any other Fusion Company and any other related rights
Executive may have under New Jersey or Virginia State law, the
Charter or bylaws of the Company, or any insurance policy
maintained by the Company, or (vi) any rights, benefits or claims
Executive, his spouse or his eligible dependents may have as a
terminated but vested employee (or eligible dependent thereof) in
accordance with the terms of the Company’s benefit
plans.

 

EXECUTIVE

 

________________________________________                     
Date:                                    
, 2018

Gordon
Hutchins, Jr.

 

 

A-2Blueprint

 

CHANGE IN CONTROL AGREEMENT

 

This
Change in Control Agreement (this “Agreement”) is made and
entered into as of November [ ● ], 2018, by and between [
● ] (“Employee”) and Fusion
Connect, Inc., a Delaware corporation (“Parent”). As used in this
Agreement, any reference to the “Company” means Parent
and all existing and future Subsidiaries of the Company and any
division of any of them, as well as any of their respective
successors and permitted assigns.

 

Section
1. Recitals.

 

A. It
is expected that the Company will, from time to time, consider the
possibility of being acquired by another entity, or that a Change
in Control (as defined) may otherwise occur with the approval of
Parent’s Board of Directors (the “Board”). Parent
recognizes that such consideration can be a distraction to Employee
and can cause Employee to consider alternative employment
opportunities. Parent has determined that it is in the best
interests of the Company to assure that the Company will have the
continued dedication and objectivity of Employee, notwithstanding
the possibility, threat or occurrence of a Change in Control of the
Company.

 

B. Parent
believes that it is in the best interests of the Company to provide
Employee with an incentive to continue his or her employment with
the Company and to motivate Employee to maximize the value of the
Company upon a Change in Control.

 

C. Parent
believes that it is imperative to provide Employee with certain
benefits under certain circumstances in connection with a Change in
Control, which benefits are intended to provide Employee with
financial security and sufficient encouragement to remain with the
Company notwithstanding the possibility of a Change in
Control.

 

Section
2. Agreement. In consideration of the
mutual covenants contained in this Agreement, and in consideration
of the continuing employment of Employee by the Company, the
parties agree as follows:

 

A. Term
of Agreement. This Agreement shall be effective as of the
date specified above and shall terminate upon the earlier of:
(a) the termination of Employee’s employment for any
reason or no reason prior to, and not in connection with, a Change
in Control; or (b) the date that all obligations of the
parties with respect to this Agreement have been satisfied.
Notwithstanding the foregoing, in the event a Change in Control
occurs during the term of this Agreement, this Agreement will
remain in effect for the longer of: (i) seven (7) months beyond the
month in which such Change in Control occurred; and (ii) until all
obligations of the Company hereunder have been fulfilled, and until
all benefits required hereunder have been paid to
Employee.

 

B.  At-Will
Employment. The Company and Employee acknowledge that
Employee’s employment is and shall continue to be at-will, as
defined under applicable law. If Employee’s employment
terminates for any reason or no reason, including, without
limitation, any termination prior to, and not in connection with, a
Change in Control, Employee shall not be entitled to any payments
or benefits, other than as provided by this Agreement, or as may
otherwise be available in accordance with applicable law and the
terms of the Company’s established employee plans and written
policies at the time of termination.

 

 

 

 

C. Separation
Benefits Upon Certain Events Following Change in Control. If
Employee’s employment is terminated (an “Involuntary Termination”)
without Cause (as defined below) within sixty (60) days prior to a
Change in Control or during the six (6) month period following a
Change in Control (the “Protected Period”),
Employee shall be entitled to the following separation
benefits:

 

1. Stock
Options and Restricted Stock. The terms of Parent’s
2016 Equity Incentive Plan and 2008 Stock Incentive Plan, and the
terms of any agreement with respect to stock options, restricted
stock or other equity compensation held by Employee shall govern
such equity compensation and are incorporated herein by
reference.

 

2. Severance
Payments.

 

(A) Employee
shall be entitled to receive an amount (the “Release Amount”) equal to
ten percent (10%) of the Aggregate Separation Payment (as defined
in Section 3(A) below). Subject to Section 2(E), the Release
Amount will be paid on the next business day following the Release
Deadline (as defined in Section 2(E) below) in a lump
sum.

 

(B) Employee
shall be entitled to receive 
an amount (the “Severance Amount”) equal
to ninety percent (90%) of the Aggregate Separation Payment, such
amount to be paid in six (6) equal monthly installments. Subject to
Section 2(D), the first installment will be paid on the next
business day following the Release Deadline and the remaining
payments will begin on the first business day of the month
following the month in which the Release Deadline
occurs.

 

(C) All
payments shall be subject to applicable taxes, and shall be capped
at an amount such that the aggregate present value of all
“parachute payments” (computed as of the date of the
Change in Control) does not exceed 2.99 times
Employee's ”base amount” determined for purposes
of Internal Revenue Service Code Section 280G.

 

(D) Notwithstanding
anything to the contrary contained herein, the Company's
obligations to make any payments to Employee pursuant to Section
2(C)(2)(B) above shall immediately cease without any required
notice or further action on the Company's part if at any time
Employee engages in a Conflicting Activity (as defined in Section
3(F) below) following his or her termination of employment with the
Company.

 

3. COBRA
Continuation Coverage. Employee’s existing coverage
under the Company’s group health plan (and, if applicable,
the existing group health coverage for his or her eligible
dependents) will end on the last day of the month in which his or
her employment terminates. Employee and his or her eligible
dependents may then be eligible to elect temporary continuation
coverage under the Company’s group health plan in accordance
with the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”). Employee and his
or her eligible dependents will be provided with a COBRA election
form and notice which describe his or her rights to continuation
coverage under COBRA. If Employee is eligible for severance
benefits under this Agreement at the time of the termination of
employment, then the Company will cover the cost of
Employee’s COBRA coverage for a period of six (6) months.
After the end of such six (6) month period, Employee (and, if
applicable, his or her eligible dependents) may continue COBRA
coverage at his or her, or their, own expense in accordance with
COBRA [Include for
California employees only -- (or CalCOBRA)]. No provision of
this Agreement will affect the continuation coverage rules under
COBRA. Therefore, the period during which Employee must elect to
continue the Company's group health plan coverage under COBRA, the
length of time during which COBRA coverage will be made available
to him or her, and all his or her other rights and obligations
under COBRA will be applied in the same manner that such rules
would apply in the absence of this Agreement. Any such election is
Employee’s responsibility, not the
Company’s.

 

 

-2-

 

 

D. Other
Terminations. Employee shall not be entitled to receive any
benefits under this Agreement in the event Employee’s
employment terminates: (1) for any reason other than those
described in Section 2(C); (2) more than sixty (60) days prior to,
and not in connection with, the occurrence of a Change in Control;
(3) for Cause; or (4) after the Protected Period.

 

E. Execution
of Release of Claims. As a condition precedent to any
Company obligation to Employee pursuant to this Agreement,
including but not limited to Section 2(C), Employee shall, prior to
the sixtieth (60th) day following his or her last day of employment
with the Company (the “Release Deadline”),
provide the Company with a valid, executed general release
agreement in the form attached hereto as Exhibit A, and such release
agreement shall have not been revoked by Employee pursuant to any
revocation rights afforded by applicable law. The Company shall
have no obligation to make any payment to Employee unless the
general release agreement contemplated by this section becomes
irrevocable in accordance with all applicable laws, rules and
regulations prior to the Release Deadline.

 

F. Section
409A. This section is intended to help ensure that
compensation paid or delivered to Employee pursuant to this
Agreement is exempt from Section 409A of the Code
(“Section 409A”). It
includes provisions intended to exempt some amounts which may be
paid or provided under this Agreement. However, the Company does
not warrant to Employee that all compensation paid or delivered to
Employee for services will be exempt from, or paid in compliance
with, Section 409A. Employee understands and agrees that he or she
bears the entire risk of any adverse federal, state or local tax
consequences and penalty taxes which may result from payment of
compensation for services on a basis contrary to the provisions of
Section 409A or comparable provisions of applicable state or local
income tax laws. Notwithstanding any other provision of this
Agreement, any payment hereunder that is subject to Section
409A(a)(2)(B)(i) of the Code shall not be made before the date
that is six (6) months after the date of Employee's separation from
service. To the extent that this Agreement or any plan, program or
award of the Company in which Employee participates or which has
been or is granted by the Company to Employee, as applicable, is
subject to Section 409A, the Company and Employee agree that
the terms and conditions of this Agreement and such other plan,
program or award shall be construed and interpreted to the maximum
extent reasonably possible, without altering the fundamental intent
of the agreement, to avoid the imputation of any tax, penalty or
interest under Section 409A. In applying Section 409A to
compensation paid pursuant to this Agreement, any right to a series
of installment payments under this Agreement shall be treated as a
right to a series of separate payments.

 

Section
3. Definitions. The following capitalized
terms used in this Agreement shall have the following
meanings:

 

A.  “Aggregate
Separation Payment”: means an amount equal to fifty
percent (50%) of Employee’s annualized rate of Base
Salary.

 

B.  “Base
Salary”: means
the highest base salary paid to Employee by the Company as annual
salary within twenty four (24) months prior to the Effective Date
of the Change in Control.

 

 

-3-

 

 

C.  “Cause”:
means any of the following: (i) the conviction of Employee of, or
the entering of a plea of nolo contendere by Employee with respect
to, a felony or a crime involving fraud, dishonesty or moral
turpitude which is materially injurious to the Company, monetarily
or otherwise; (ii) any serious misconduct in the course of
employment or material violation of the Company’s Code of
Conduct or Employee Manual; (iii) habitual neglect of
Employee’s duties (other than on account of
“disability” as defined below) which materially
adversely affects the performance of Employee’s duties and
continues for thirty (30) days following Employee’s receipt
of written notice from the Company, which specifically identifies
the nature of the habitual neglect and the duties that are
materially adversely affected and states that, if not cured, such
habitual neglect constitutes grounds for the termination of
employment; except that Cause shall not mean: (1) bad judgment or
negligence unless it materially adversely affects the performance
of Employee’s duties and continues for thirty (30) days
following Employee’s receipt of the notice described in
Section 3(D)(iii); (2) any act or omission believed by Employee in
good faith to have been in or not opposed to the interest of the
Company (without intent to gain, directly or indirectly, a profit
to which Employee was not legally entitled); (3) any act or
omission with respect to which a determination could properly have
been made by the Company that Employee met the applicable standard
of conduct for indemnification or reimbursement under such
employer’s by-laws, any applicable indemnification agreement,
or applicable law, in each case in effect at the time of such act
or omission; or (4) any act or omission with respect to which
notice of termination is given more than twelve (12) months after
the earliest date on which any officer of the Company, not a party
to the act or omission, knew of such act or omission.
“Cause” for purposes of this Agreement shall also mean
Employee’s death or “disability,” which is
defined as any medically determinable physical or mental impairment
that has lasted for a period of either (x) one hundred eighty (180)
consecutive days, or (y) two hundred seventy (270) days (whether or
not consecutive) during any period of eighteen (18) consecutive
months, and that renders Employee unable to perform the essential
functions of his or her job even with reasonable accommodation (in
the Board’s commercially reasonable
determination).

 

D. “Change
in Control”:
means the occurrence of any of the following events:

 

1.  the
closing of a sale or conveyance of all or substantially all of the
assets or business of the Company, directly or indirectly, whether
through the sale of stock of, or other equity interests in,
Subsidiaries, sale of assets, merger, consolidation, other business
combination, or any combination thereof; or

 

2. the
closing of a sale or conveyance of assets of the Company (directly
or indirectly, whether through the sale of stock of, or other
equity interests in, Subsidiaries, sale of assets, merger,
consolidation, other business combination or any combination
thereof) representing fifty percent (50%) of more of (x) the total
book value of the consolidated total assets of the Company,
exclusive of cash and marketable securities as of the last
month-end prior to the execution of the written contract providing
for the Change in Control (the "Contract"), or (y) to which
fifty percent (50%) or more of the consolidated total revenues of
the Company from operations during the twelve (12)-month period
ending on the last month-end prior to the execution of the Contract
are attributable; or

 

 

-4-

 

 

3. any
merger, liquidation, business combination or consolidation
transaction in which shares of the Company's common stock are
converted into the right to receive cash and/or securities of an
acquiring person or any other entity or issuer; or

 

4. the
effective time of any merger, share exchange, consolidation or
other reorganization or business combination of the Company if
immediately after such transaction persons who hold a majority of
the outstanding Voting Securities entitled to vote generally in the
election of directors of the surviving entity are not persons who
held voting capital stock of the Company immediately prior to such
transaction; or

 

5. any
other transaction or series of related transactions having an
economic effect substantially equivalent to any of the foregoing;
provided, however, that any transaction entered into solely among
the Company and other Affiliates of Holcombe Green, Jr. shall not
be deemed a Change in Control hereunder. For purposes of this
definition, the term "Affiliate" shall mean any person or entity,
directly or indirectly, controlling, controlled by, or under common
control with, Holcombe Green, Jr.; provided, however, that, for
purposes of this Agreement, any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company shall not be considered a
Change in Control.

 

Notwithstanding
the foregoing, the term Change in Control will not include a sale
of assets, merger or other transaction effected exclusively for the
purpose of changing the domicile of any Company. To the extent
required for compliance with Section 409A, in no event will a
Change in Control be deemed to have occurred if such transaction is
not also a “change in the ownership or effective control
of” the Company or “a change in the ownership of a
substantial portion of the assets of” the Company as
determined under Treasury Regulations Section 1.409A-3(i)(5)
(without regard to any alternative definition
thereunder).

 

E. “Code”:
means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.

 

F. “Conflicting
Activity”:
means the following: serving as an officer, director, employee,
consultant, advisor, agent or representative of, or investing in,
any person or entity engaged in any primary line of business
engaged in by the Company during the one-year period prior to
Employee’s termination of employment; provided, that the foregoing
shall not include a passive investment in not more than two percent
(2%) of the publicly traded equity of any exchange-listed
company.

 

G.  “Effective
Date”: means
the first date on which a Change in Control occurs during the term
of this Agreement. Despite anything in this Agreement to the
contrary, if the Company terminates Employee’s employment
within sixty (60) days prior to the date of a Change in Control,
and if Employee reasonably demonstrates that such termination of
employment (a) was at the request of a third party who had
taken steps reasonably calculated to effect the Change in Control,
or (b) otherwise arose in anticipation of the Change in
Control, then “Effective Date” shall mean the date
immediately before the date of such termination of
employment.

 

 

-5-

 

 

H. “Subsidiary”
or “Subsidiaries”:
means any corporation as defined in Section 424(f) of the Code
with the Parent being treated as the employer corporation for
purposes of this definition, and any partnership or limited
liability company in which Parent or any Subsidiary has a direct or
indirect interest (whether in the form of voting power or
participation in profits or capital contribution) of fifty percent
(50%) or more. The determination of Subsidiary status shall be
made, in the case of a Change in Control, at the time of the
occurrence of the event constituting a Change in Control; and in
the case of an event relating to employment status or benefits, at
the time such event occurs.

 

I. “Voting
Securities”:
means securities of a corporation that are entitled to vote
generally in the election of directors of such
corporation.

 

Section
4. Notice
and Arbitration

 

A. Notice.
Notices and all other communications contemplated by this Agreement
shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.
Notices mailed to Employee shall be addressed to Employee at the
home address that Employee most recently communicated to the
Company in writing. In the case of the Company, mailed notices
shall be addressed to its corporate headquarters, and all notices
shall be directed to the attention of the General
Counsel.

 

B. Arbitration
and Dispute Resolution.

 

1. In
the event disputes arise between them (other than claims that
Employee may have for workers’ compensation or unemployment
insurance benefits, or claims based on any state or federal law
that have been determined by the controlling judicial authority of
appropriate jurisdiction not to be arbitrable pursuant to
pre-dispute arbitration agreements such as this arbitration
provision), both parties will be bound by this arbitration clause
which provides for final and binding arbitration for disputes
arising out of or relating to Employee’s employment with the
Company, the termination of Employee’s employment, and/or any
agreements previously or hereafter entered into between Employee
and the Company. The parties shall arbitrate such disputes under
the most recently issued National Rules for the Resolution of
Employment Disputes of the American Arbitration Association. All
disputes shall be resolved by a single arbitrator agreed to by the
Company and Employee.

 

2. Once
the arbitration has commenced, both the Company and Employee shall
have the right to conduct normal civil discovery, the extent and
quantity of such shall be subject to the discretion of the selected
arbitrator. The arbitrator shall have the exclusive authority to
resolve any issues relating to the arbitrability of the dispute or
the validity or interpretation of this arbitration provision, to
rule on motions to dismiss and/or motions for summary judgment, and
shall be empowered to award either party any remedy at law or in
equity that the prevailing party would otherwise have been entitled
to had the matter been litigated in court. The arbitrator shall
issue a decision or award in writing, stating the essential
findings of fact and conclusions of law. Judgment on the award
rendered by the arbitrator may be entered in any court having
jurisdiction. Costs shall be allocated such that Employee will not
incur any costs other than that which would be incurred to file a
civil action in any court with proper jurisdiction over the
dispute.

 

 

-6-

 

 

3. BOTH
THE COMPANY AND EMPLOYEE EXPRESSLY WAIVE ANY RIGHT THAT THEY HAVE
OR MAY HAVE TO A CIVIL JURY TRIAL. ONLY AN ARBITRATOR, NOT A JUDGE
OR JURY, WILL DECIDE ANY SUCH DISPUTE. BOTH PARTIES AGREE THAT NO
ACTION MAY BE BROUGHT IN COURT EXCEPT ACTIONS TO COMPEL
ARBITRATION, TO OBTAIN THE DISMISSAL OF ACTIONS FILED IN COURT IN
CONTRAVENTION OF THIS ARBITRATION CLAUSE, OR TO SEEK PROVISIONAL
RELIEF AS MAY BE ALLOWED BY STATE OR FEDERAL LAW.

 

4. Although
all claims arising between the parties are subject to arbitration,
unless otherwise prohibited by applicable law, each party retains
the right to file, in a court of competent jurisdiction, an
application for provisional injunctive and/or equitable relief in
connection with a claim relating to this Agreement, including any
claims relevant to the application for provisional relief, and
shall not be obligated to post a bond or other security in seeking
such relief unless specifically required by law. Although a court
may grant provisional injunctive and/or equitable relief, the
arbitrator shall at all times retain the power to grant permanent
injunctive relief, or any other final remedy.

 

Section
5. Miscellaneous Provisions.

 

A. Successors.
Any successor to the Company (whether direct or indirect and
whether by purchase, lease, merger, consolidation, liquidation or
otherwise) to all or substantially all of Company’s business
and/or assets shall assume the obligations under this Agreement and
agree expressly to perform the obligations under this Agreement in
the same manner and to the same extent as the Company would be
required to perform such obligations in the absence of a
succession. The terms of this Agreement and all of Employee’s
rights hereunder shall inure to the benefit of, and be enforceable
by, Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and
legatees.

 

B. No
Duty to Mitigate. Employee shall not be required to mitigate
the amount of any payment contemplated by this Agreement (whether
by seeking new employment or in any other manner), nor, except as
otherwise provided in this Agreement, shall any such payment be
reduced by any earnings that Employee may receive from any other
source.

 

C. Waiver.
No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed
to in writing and signed by Employee and by the Chief Executive
Officer or the Vice President of Human Resources and Administration
of Parent. No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by
the other party shall be considered a waiver of any other condition
or provision or of the same condition or provision at another
time.

 

D. Whole
Agreement. No agreements, representations or understandings
(whether oral or written and whether express or implied) which are
not expressly set forth in this Agreement have been made or entered
into by either party with respect to the subject matter hereof.
This Agreement supersedes any agreement of the same title and/or
concerning similar subject matter dated prior to the date of this
Agreement, and by execution of this Agreement both parties agree
that any such predecessor agreement shall be deemed null and
void.

 

 

-7-

 

 

E. Choice
of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the
State of Delaware without reference to conflict of law
provisions.

 

F. Severability.
If any term or provision of this Agreement or the application
thereof to any circumstance shall, in any jurisdiction and to any
extent, be invalid or unenforceable, such term or provision shall
be ineffective as to such jurisdiction to the extent of such
invalidity or unenforceability without invalidating or rendering
unenforceable the remaining terms and provisions of this Agreement
or the application of such terms and provisions to circumstances
other than those as to which it is held invalid or unenforceable,
and a suitable and equitable term or provision shall be substituted
therefore to carry out, insofar as may be valid and enforceable,
the intent and purpose of the invalid or unenforceable term or
provision; provided,
that the Company and Employee acknowledge and agree that the
provisions of Section 2(C)(2)(D) were a material inducement to the
Company to offer the payments and benefits under this Agreement,
will continue to be fundamental to the Company's willingness to
perform its obligations under this Agreement, and if the provisions
of Section 2(C)(2)(D) are at any time determined to be invalid or
unenforceable in any arbitration pursuant to the terms of this
Agreement (or by a court of competent jurisdiction), the Company
and Employee agree that this entire Agreement, including all terms
and provisions of this Agreement (other than this proviso) shall be
invalid and unenforceable, and this Agreement shall be rendered
void and of no further force and effect.

 

G. Legal
Fees and Expenses. The parties shall each bear their own
expenses, legal fees and other fees incurred in connection with
this Agreement.

 

H. No
Assignment of Benefits. The rights of any person to payments
or benefits under this Agreement shall not be made subject to
option or assignment, either by voluntary or involuntary assignment
or by operation of law, including (without limitation) bankruptcy,
garnishment, attachment or other creditor’s process, and any
action in violation of this Section 5(H) shall be
void.

 

I. Employment
Taxes. Unless otherwise expressly noted, all payments made
pursuant to this Agreement will be subject to withholding of
applicable income and employment taxes.

 

J. Assignment
by the Company. Parent may assign its rights under this
Agreement to an affiliate (including a Subsidiary) without
Employee’s consent.

 

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

 

IN WITNESS WHEREOF, each of the parties
has executed this Agreement as of the day and year first above
written.

 

	
FUSION
CONNECT, INC.

	

              (Employee
Name)            
 

	
 

 

By:                                                                

Name:

Title:

 

	
 

                                                               

 

 

 

 

 

 

-8-

 

Exhibit
A

 

GENERAL RELEASE OF ALL CLAIMS

 

I,
[insert name of employee], hereby make on behalf of myself, my
heirs, executors, administrators, successors, and assigns, the
following agreements and acknowledgements pursuant to this General
Release of All Claims (“General Release”) in consideration
of: (1) the Severance Amount as defined in the Change in Control
Agreement dated ____________________, 20[ ], by and between [insert
name of employee] and Fusion Connect, Inc., a Delaware corporation
(the “Change in Control Agreement”), and (2) the
healthcare benefits as set forth in COBRA Continuation Coverage section of
the Change in Control Agreement.

 

I.

Release
and Waiver of All Claims

 

A. I
hereby agree that I fully and forever discharge, waive and release
any and all claims and causes of action of any kind that I may have
had or now have against: Fusion Connect, Inc. and each of its
Subsidiaries (“Entities”) any and all affiliates,
predecessors, successors and assigns of the Entities
(“Covered
Entities”); and any and all owners, shareholders,
members, officers, directors, agents, attorneys, employees,
representatives and employee benefit plans of the Entities and
Covered Entities (“Covered
Persons”) (the Entities, Covered Entities and Covered
Persons being hereinafter collectively referred to as the
“Company”)
arising out of or relating in any way to my employment with the
Company and the termination thereof, including but not limited to:
(1) claims of wrongful discharge, constructive discharge, breach of
contract, breach of the covenant of good faith and fair dealing,
violation of public policy, defamation, personal injury, infliction
of emotional distress, negligence, fraud and invasion of privacy;
(2) claims of harassment, retaliation and discrimination; (3)
claims under Title VII of the 1964 Civil Rights Act, as amended,
the Equal Pay Act of 1963, 42 U.S.C. § 1981, the Americans
with Disabilities Act, the Civil Rights Act of 1866, the Employee
Retirement Income Security Act of 1974, as amended, Workers
Adjustment and Retraining Notification Act 9 [include only for
employees over the age of 40 – the federal Age Discrimination
in Employment Act, as amended (the “ADEA”)] and any other federal laws
and regulations relating to employment; (4) if I am or was employed
by the Company in California, any laws and regulations of
California and its local governments relating to employment
including but not limited to the California Fair Employment and
Housing Act, the California Labor Code including Section 1197.5
thereof, and the California Family Rights Act; and (5) if I am or
was employed by the Company in a state other than California, any
analogous laws and regulations of that state and the local
governments of each such state; and excluding any claims that
cannot be waived or released as a matter of law, including those
relating to unemployment or workers’
compensation insurance benefits. Nothing in this General Release
waives or releases any claims that cannot be released by private
agreement between the parties.

 

B. If
I am a California employee, I hereby agree that I fully and forever
waive any and all rights and benefits conferred upon me by: (i) the
provisions of Section 1542 of the Civil Code of the State of
California, which states as follows: “[a] general release
does not extend to claims which the creditor [i.e., employee] 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 [i.e.,
the Company]”. If I am not a California employee, I hereby
waive any analogous law of any state other than California that may
apply to the General Release, including the state in which I am or
was employed by the Company.

 

 

A-1

 

 

I agree
and understand that if, hereafter, I discover facts different from
or in addition to those which I now know or believe to be true,
that the waivers of this General Release shall be and remain
effective in all respects notwithstanding such different or
additional facts or the discovery thereof.

 

II.

Confidential
Information & Company Employees

 

I
hereby agree and understand that:

 

A. I am required to
return to the Company immediately upon my termination of employment
all Company Information, including but not limited to notebooks,
customer lists, notes, manuals, memoranda, records, diagrams,
blueprints, bulletins, formulas, reports, computer programs, or
other data or memorialization’s of any kind, as well as any
Company property or equipment, that I have in my possession or
under my control. I further agree and understand that I am not
entitled or authorized to keep any portions, summaries or copies of
Company Information, and that I am under a continuing obligation to
keep all Company Information confidential and not to disclose it to
any third party in the future. I understand that the term
“Company
Information” includes, but is not limited to, the
following:

 

● 

Trade secret,
information, matter or thing of a confidential, private or secret
nature, connected with the actual or anticipated products,
research, development or business of the Company, its partners or
its customers, including information received from third parties
under confidential conditions; and

 

● 

Other technical,
scientific, marketing, business, product development or financial
information, the use or disclosure of which might reasonably be
determined to be contrary to the interests of the
Company.

 

B. I am prohibited for
a period of one (1) year after the termination of my employment,
from soliciting for employment, whether as an employee, independent
contractor, or agent, any Company employee, either on behalf of
myself or a third party; and for that same time period I am
prohibited from encouraging or otherwise enticing any Company
employee to terminate his or her employment with the Company,
unless such restrictions are prohibited under applicable law.
Nothing in this General Release shall be construed: (i) to restrain
me from seeking to engage in any profession, trade or business;
(ii) to restrain any business which I may be employed by or
otherwise affiliate with from hiring or seeking to hire a Company
employee without my solicitation, encouragement or enticement; or
(iii) to diminish or waive any rights that Company may have in
protecting its confidential information, ensuring employee loyalty
and an undisrupted workplace and otherwise preventing unfair
competition.

 

C. The promises and
agreements of this Section II. are a material inducement to the
Company to provide me with the payments and benefits under the
General Release and that, for the breach thereof, the Company will
be entitled to pursue its legal and equitable remedies against me,
including, without limitation, the right to immediately cease
payments made pursuant to the General Release and/or seek
injunctive relief; provided,
however, this General Release will remain in full force and
effect.

 

 

A-2

 

 

III. No
Admission

 

I agree
and understand that neither the fact nor any aspect of this General
Release is intended, should be deemed, or should be construed at
any time to be any admission of liability or wrongdoing by either
myself or the Company.

 

IV. Severability

 

I agree
and understand that if any provision, or portion of a provision, of
this General Release is, for any reason, held to be unenforceable,
that such unenforceability will not affect any other provision, or
portion of a provision, of this General Release and this General
Release shall be construed as if such unenforceable provision or
portion had never been contained herein.

 

V. Time
to Consider and Sign General Release

 

[For employees under 40 -- I
understand that I may have five (5) days after receipt of this
General Release within which I may review and consider, discuss
with an attorney of my own choosing and at my own expense, and
decide whether or not to sign this General Release. I understand
that, if I do not sign the General Release within this five-day
period, this General Release will not become effective and no
payments and benefits under the General Release will be provided to
me. I understand that this General Release becomes effective
immediately upon signing it.

 

[For employees 40 and over -- I
acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under the ADEA, and that the
consideration given under the Change in Control Agreement for the
waiver and release of any ADEA claims is in addition to anything of
value to which I was already entitled. I further acknowledge that I
have been advised, as required by the ADEA, that: (a) my
waiver and release does not apply to any rights or claims that may
arise after the date I sign this General Release; (b) I should
consult with an attorney prior to signing this General Release
(although I may choose voluntarily not do so); (c) I have
twenty one (21) days to consider this General Release (although I
may choose voluntarily to sign this General Release earlier);
(d) I have seven (7) days following the date I sign this
General Release to revoke it by providing written notice to the
Vice President of Human Resources and Administration of the
Company; and (e) this General Release will not be effective
until the date upon which the revocation period has expired, which
will be the eighth day after I sign this Release.]

 

VI.

Miscellaneous
Acknowledgements and Agreements

 

A. I
hereby acknowledge that I understand that, but for my signing of
this General Release, I would not be entitled to nor would I be
provided with any of the payments and benefits under the General
Release. I understand that no payments and benefits will be
provided to me until this General Release becomes effective. I
understand further that, even if I did not sign this General
Release, I would still be entitled to:

 

 

A-3

 

 

1. all
wages, including final pay, commissions (if applicable) and any
paid time off or vacation, less applicable deductions, earned by me
through my termination date; and

 

2. the
opportunity, if I am eligible, to elect, at my sole expense, to
continue to participate in (and, if applicable, my dependents are
eligible to elect to continue their participation in) the group
health insurance plans provided by the Company pursuant to the
terms and conditions of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”).

 

A. I
hereby acknowledge that any agreement that I signed in connection
with my employment with the Company regarding employee inventions,
authorship, proprietary and confidential information, and
non-solicitation shall remain in full force and effect following
the termination of my employment.

 

B. I
hereby acknowledge that I have no known workplace injuries or
occupational diseases, that I have been provided and/or have not
been denied any leave requested under the Family and Medical Leave,
California Family Rights Act (if I am a California employee only)
or any similar law of any state other than California and that I
have not been retaliated against for exercising any rights that I
may have under those laws.

 

C. I
hereby acknowledge that I have received all wages earned by me and
owed to me by the Company through my last day of employment with
the Company, including, but not limited to all earned bonuses,
commissions, overtime, expenses or other earnings or payments owed,
less appropriate withholdings.

 

D. I
hereby acknowledge that I performed no work for and provided no
services to the Company after the completion of my work day on the
last day of employment with the Company.

 

E. I
agree to keep the fact of all the terms of this General Release
strictly confidential, except that I may disclose its contents to
my spouse, attorney, accountant, or as compelled by force of law. I
understand that this confidentiality provision does not prevent me
from telling anyone that my employment with the Company was
terminated.

 

 

A-4

 

 

EMPLOYEE'S ACCEPTANCE OF GENERAL RELEASE

 

BEFORE
SIGNING MY NAME TO THIS GENERAL RELEASE, I STATE THAT: I HAVE READ
IT; I UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS;
I AM AWARE OF MY RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING
IT; AND I HAVE SIGNED IT KNOWINGLY AND VOLUNTARILY.

 

The period of time to consider and sign this General Release starts
on Date.

 

Date
signed: _____________________________

 

 

 

 

___________________________________

Employee’s
Signature

 

 

 

___________________________________

Employee’s
Name (Printed)

 

 

 

 

 

 

 

 

 

 

 

 

 

A-5

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