Document:

EMPLOYMENT AGREEMENT

 

EXHIBIT 10.48

EMPLOYMENT AGREEMENT

This Agreement (“Agreement”) is entered into as of October 17, 2016 (the “Effective Date”), by and between Social Reality, Inc., a Delaware corporation (the “Company”) and J.P. Hannan, an individual (“Employee”). The parties hereby agree as follows:

In consideration of their mutual promises and covenants set forth herein, and intending to be legally bound hereby, Company and Employee agree as follows:

1.

Employment. The Company shall employ Employee to provide the services as are customary for a public company Chief Financial Officer (“CFO”), or other title that may change from time to time. Employee hereby accepts employment, upon the terms and conditions hereinafter set forth.

2.

Term. The Company shall employ Employee from October 17, 2016 until such time as either party chooses to terminate the employment (the “Term”).  The employment relations hip shall be employment at-will, terminable by either party with or without cause.

3.

Duties of Employee. During the Term, the Executive shall be a full-time employee of the Company, shall dedicate substantially all of his working time to the Company, and shall have no employment or other business ventures that are undisclosed to the Company or that conflict with Employee's duties under this Agreement. Notwithstanding the foregoing, nothing herein shall prohibit the Employee from (i) participating in trade associations or industry organizations that are related to the business of the Company, (ii) engaging in charitable, civic or political activities, (iii) engaging in personal investment activities for the Employee and his family that do not give rise to any conflicts of interest with the Company or its affiliates, or (iv) with the prior approval of the Chief Executive Officer, accepting directorships unrelated to the Company that do not give rise to any conflicts of interest with the Company or its affiliates, in each case so long as such interests do not materially interfere, individually or in the aggregate, with the performance of the Employee’s duties hereunder. The Company acknowledges and approves the current activities of the Employee as set forth on Schedule l hereto. Employee shall render such duties and services for the Company or its affiliated entities as the Company or its affiliated entities may from time to time request. Employee agrees to serve the Company faithfully and perform such duties and services using his best effort and abilities. Employee agrees to act at all times in the best interests of the Company. Employee agrees to conduct himself at all times in a business-like and professional manner as appropriate for a person in Employee’s position and to represent the Company in all respects in a manner that comports with sound business judgment in the highest ethical standards. Employee will be subject to abide by the Employee Handbook and all policies and procedures of the Company and its affiliated entities, as adopted and revised by the Company and its affiliated entities, from time to time. Employee shall be subject to the direction of the Company, which shall retain full control over the means and methods by which Employee performs his duties and the above services.

4.

Compensation. As remuneration to Employee for his services, the Company shall compensate Employee as follows:

 

a.

Salary. Effective as of the date of this Agreement, the Employee shall be paid an annual base salary (“Base Salary”) of Two Hundred Thousand Dollars ($200,000.00) made payable in accordance with the Company’s normal payroll practices and subject to all required withholdings, as they may be modified from time to time. The Base Salary shall be paid to Employee on a twice a month basis. The Employee’s Base Salary shall be reevaluated on an annual basis.

b.

Annual Bonus. In addition to Employee’s Base Salary, Employee shall be paid an additional $100,000.00 annual bonus (“Annual Bonus”), to be distributed in equal quarterly installments based on the Company’s Fiscal Year, with the first distribution on April 1, second distribution on May 16, third distribution on August 16, and fourth distribution on November 16. All distributions are contingent on the timely filing per SEC Guidelines of the 10Q Quarterly Report and the 10K Annual Report, and subject to the continued employment of the Employee. The Annual Bonus is payable in conformity with the Company’s normal payroll practices and subject to all required withholdings, as they may be modified from time to time.

c.

Restricted Stock Grant Annual Bonus. The Company shall grant to the Employee $100,000 worth of the Company’s Restricted Stock Units on an annual basis pursuant to the Company’s Equity Compensation Plan (“Plan”), contingent on the timely filing per SEC Guidelines of the 10Q Quarterly Report and the 10K Annual Report, and subject to the continued employment of the Employee. Distribution of the Restricted Stock Grant shall be made on an annual basis on the anniversary of the Effective Date of this Agreement. The terms and conditions of the Restricted Stock Grant shall be memorialized in a separate writing, a copy of which is attached hereto as Exhibit A and incorporated herein by such reference, and shall be governed by the terms of the Plan. The Restricted Stock Grant is subject to the limitations of sale outlined in Exhibit A.

d.

One Time Restricted Stock Grant of Shares. The Company shall grant to Employee an additional 100,000 shares of Restricted Stock Units, with 50,000 units vesting each year on the Effective Date of this Agreement for a two year period, subject to the continued employment of the Employee. The terms and conditions of the Restricted Stock Grant shall be memorialized in a separate writing, a copy of which is attached hereto as Exhibit A and incorporated herein by such reference, and shall be governed by the terms of the Plan. The Restricted Stock Grant is subject to the limitations of sale outlined in Exhibit A.

e.

Employee Benefits. The Employee shall be entitled to participate in all benefit programs of the Company existing as of the Effective Date of the Agreement or hereafter made available to other Company executives, including, but not limited to, pension and other retirement plans, group life insurance, hospitalization, surgical and major medical coverage, sick leave, disability and salary continuation, vacation and holidays, long-term disability, and other fringe benefits in accordance with Company’s policies that may be modified, changed, reduced or eliminated from time to time.

f.

Expenses. Employee shall be entitled to receive reimbursement from the Company for all reasonable business expenses actually incurred by or paid by him in connection with his services hereunder, which constitute tax deductible expenses in accordance with Company’s reimbursement policies that may be modified from time to time, upon presentation of expense statements or such other supporting information as the Company may customarily require of its employees.

 

g.

Paid Time Off. Employee is entitled to accrue thirty (30) days of Paid Time Off (“PTO”) on an annual basis. Employee becomes eligible for PTO upon hire (“annual anniversary date”). PTO does not accrue during the Employee’s unpaid leave of absence.

PTO accrues in full on the Employee’s annual anniversary date. Unused PTO will carry over to the following year, and the employee’s PTO will be subject to a maximum accrual of 30 days.

Whenever possible, PTO must be scheduled in advance for time off for vacations, personal leave, appointments, or other appropriate reasons. PTO requests of three (3) or more consecutive dates must be submitted in writing.

PTO requests for purposes of an illness or injury, domestic violence, sexual assault and stalking may be made upon the oral or written request of an employee for the diagnosis, care or treatment of an existing health condition of, or preventative care for, an employee or an employee's family member. PTO may also be used by an employee who is the victim of domestic violence, sexual assault or stalking in order to obtain relief, such as to obtain a restraining order. It is up to each employee to determine how much PTO he or she needs to use for an illness or injury, domestic violence, sexual assault or stalking. If the need for PTO due to illness or injury, domestic violence, sexual assault or stalking is unforeseeable, the employee shall provide notice of the need for the leave as soon as practicable.

Company will not deny an employee the right to use PTO for purposes of illness or injury, domestic violence, sexual assault or stalking, nor discharge, threaten to discharge, demote, suspend, or in any manner discriminate against an employee for using such PTO or attempting to exercise the right to use such PTO. It is in Employee’s best interest not to be at work when she/he is disabled due to illness or injury.

PTO is paid at the employee’s regular rate of pay. PTO is not applied to holidays recognized by Company.

PTO may be used in two-hour increments, at a minimum. The Company can charge partial PTO days to exempt employees who have accrued unused PTO, and who work less than four (4) hours on any particular workday.

5.

Termination of Employment; Death or Disability.

a.

Each party shall have the right to terminate the employment of Employee by the Company at any time, with or without cause.

b.

Upon termination of this Agreement for any reason, Employee will, if requested in writing by the Company, cooperate with the Company to help assure a smooth transition of his duties to his successor. The Company will compensate Employee for any time spent providing such transition assistance at an hourly rate based upon Employee’s salary at the time of termination.

 

c.

Death or Disability. In the event of the death of the Employee during the Term, this Agreement shall terminate effective as of the date of the Employee’s death, and the Company shall not have any further obligations or liability hereunder.

In the event of the Employee’s Disability during the Term, the Employee shall be entitled to compensation in accordance with the Company’s disability compensation practice for employees, if any, but in all events the Employee shall continue to receive the Base Salary through the date on which the Disability has been deemed to occur as hereinafter provided. “Disability”, for the purposes of this Agreement, shall be deemed to have occurred in the event (A) the Employee is unable by reason of sickness or accident, to perform the Employee’s duties under this Agreement for an aggregate of sixty (60) days in any consecutive six (6) month period, or (B) the Employee has a guardian of the person or estate appointed by a court of competent jurisdiction. “Termination due to Disability” shall be deemed to have occurred upon the first day of the month following the determination of Disability as defined in the preceding sentence. Notwithstanding anything contained herein to the contrary, the Company is not obligated to adopt or continue any disability compensation practices for its employees, including the Employee.

d.

Resignation for Good Reason. In the event that the Employee resigns, then the Employee shall be entitled to no compensation or other benefits of any kind whatsoever, other than the Employee’s vested stock options and/or restricted shares as of the termination date.

6.

Confidential Information, Proprietary Information, and Non-Disclosure

The Employee agrees that she will be a recipient of confidential and propriety information treated, designed, gathered, ordered by, and conceived by the Company or prepared by a third party such as a client, attorney, employee, owner, shareholder, member, manager, lender, or representative for the Company’s business purposes.

The Employee agrees that the dissemination of such information to any other party could cause significant harm to the Company.

The Company is willing to disclose information to the Employee subject to the conditions and terms hereinafter set forth.

a.

Confidential Information.

For purposes of this Agreement, Confidential Information shall mean all Company information both written and oral, involving the Company’s business, including but not limited to: business plans, strategic and development plans, contracts, financial arrangements, budgets, financial statements, products and services, financial condition, pricing data, gross profit margin, co-developer identities, data, business records, actual and potential customer lists, project records, correspondence, market reports, sales and marketing information, advertising sources, employee lists and employee information, employee personnel files, suppliers and vendor lists, recipes, formulas, business manuals, policies and procedures, methods of production (including quality control and packaging), ideas, concepts, systems, practices, methods, techniques, processes, studies, technologies, technical designs, schematics, tool designs, inventions, discoveries or theories and any other information which may be disclosed by the Company or to which the Employee may be provided access by the Company or others in accordance with this Agreement,

 

or which is generated as a result of or in connection with the Company’s business purposes which is generally not made available to the public.

b.

Proprietary Information.

For purposes of this Agreement, Proprietary Information shall mean all Company intellectual property, customer relationships, personnel, or sales, marketing, and financial operations and methods, trade secrets, formulas, devices, secret inventions, processes, and other compilations of information, records, and specifications, confidential or trade secret information (including but not limited to “trade secrets” as defined in Section 3426.1 of the California Civil Code) (collectively “Proprietary Information”). The Company and any of its affiliates shall have the exclusive, worldwide rights and ownership to Employee’s contribution to all Proprietary Information, as well as the exclusive worldwide rights to reproduce, adapt, publish, market, distribute, sell, license and display Employee’s contribution to any and all Proprietary Information. These rights may be exercised by the Company through the Company or any of its affiliates. Nothing contained in this Agreement shall be construed as an assignment or grant to Employee of any right, title, or interest in or to any Proprietary Information, it being understood that all rights relating thereto owned by the Company are reserved by the Company. Employee is deemed to have simultaneously assigned, transferred, and conveyed to the Company any trade rights, trademark, service mark, or copyright, equities, good will, titles, or other rights in and to Employee’s contribution to Proprietary Information, including which may have been obtained or created by Employee’s contribution to any and all Proprietary Information during the employment relationship. Any such assignment, transfer or conveyance shall be made without other considerations.

c.

 Employee’s Obligations. 

Employee promises and agrees to hold the Confidential Information and Proprietary Information including any such information developed by Employee for the Company in confidence.

Employee further promises and agrees:

i.

to protect and safeguard the Confidential Information and Proprietary Information against unauthorized use, publication, or disclosure and not disclose same to any person or entity other than employees or agents of Employee who need to know the Confidential Information and Proprietary Information and in those instances only to the extent justifiable by that need,

ii.

not to use any of the Confidential Information and Proprietary Information except for the business purposes of the Company,

iii.

not to, directly or indirectly reveal, report, publish, disclose, transfer or otherwise use any of the Confidential Information and Proprietary Information for any purpose whatsoever except as specifically authorized by the Company in accordance with this Agreement,

iv.

to keep record of the Confidential Information and Proprietary Information furnished by the Company and its location and to retain upon request of the Company, all Confidential Information and Proprietary Information received in written or tangible form, including copies or reproductions within ten (10) days of such request,

 

v.

that in the event the Employee becomes legally compelled by deposition, interrogation, subpoena, civil investigative demand or similar process to disclose any of the Confidential Information and Proprietary Information, the Employee so compelled shall provide the Company with prompt prior written notice of such requirement so the Company may seek a protective order or other appropriate remedy and/or waive compliance with the terms of this Agreement. In the event that the Company does not obtain Protective Order, the Employee agrees to furnish only the portion of the Confidential Information and Proprietary Information, which it is advised by written opinion of counsel is legally required,

vi.

that Employee shall have no right to assign its rights under this Agreement, whether expressly or by operation or law, without the written consent of the Company. The Agreement and Employee’s obligations hereunder shall be binding on Representatives, permitted assigns, and successors or Employee and shall inure to the benefit of the representatives, assigns and successors of the Company.

d.

Exceptions.

The confidentiality obligations hereunder shall not apply to:

i.

information which is, or later becomes lawfully obtainable from other non-confidential sources,

ii.

information that was known to Employee prior to the disclosure thereof by Company to Employee, as evidenced by written records,

iii.

information that the company waives the Employee’s duty as to the confidentiality in writing.

e.

No Right To Confidential Information Or Proprietary Information.

Employee hereby agrees and acknowledges that no license, either express or implied, is hereby granted to Employee by the Company to use any of the Confidential Information and Proprietary Information and that all Confidential Information and Proprietary Information, even if created by Employee shall be the exclusive property of the Company and the Employee has no right or title thereto. Company makes no representation or warranty as to the accuracy of completeness of the Confidential Information and Proprietary Information and Employee agrees that Company and its employees and agents shall have no liability to Employee resulting from any use of the Confidential Information and Proprietary Information.

f.

Indemnification.

Employee agrees to indemnify and hold harmless the Company and its owners, officers, directors, shareholders, employees, members, managers, lenders, and agents from and against any and all losses, damages, claims, liabilities, expenses, joint or several incurred or suffered by the Company as a result of Employee’s breach of this Confidential Information, Proprietary Information, and Non-Disclosure provision.

g.

Re turn Of Confidential Information And Proprietary Information.

In further consideration of the disclosure to be made by the Company, Employee agrees to promptly redeliver to the Company upon request, and without relieving Employee of any obligation

 

of confidentiality, all written material containing or reflecting any Confidential Information and Proprietary Information (including all copies, extracts or other reproductions) and further agrees that the Company shall have no liability to Employee resulting from the use of the Confidential Information and Proprietary Information. Upon request, Employee shall certify to Company that it has returned all of the Confidential Information and Proprietary Information.

h.

Remedies.

Employee agrees that he shall be liable for all damages caused to the Company for any willful disclosure of the Confidential Information and Proprietary Information, either directly or indirectly, including, but not limited to, loss of revenue, loss of business, loss of customers, loss of customer goodwill, and loss of trade secrets. The Company may prosecute Employee for any violation of this provision, at Employee’s expense, and the Company’s remedies shall include, but not be limited to, damages, punitive damages, and special damages.

Employee hereby further agrees that the Confidential Information and Proprietary Information referenced herein are of a unique character and that the breach of this Agreement would cause the Company irreparable harm which cannot be reasonably or adequately compensated for in damages in an action at law. Therefore, the Company shall also be entitled to injunctive relief for such breach with the requirement that a bond be posted in addition to any other rights or remedies Company may have at law or in equity.

7.

Noninterference.

While employed by the Company and for a period of three years after termination of the Agreement, Employee agrees not to interfere with the business of the Company or any of its affiliated entities by directly or indirectly soliciting, attempting to solicit, inducing, or otherwise causing any employee of the Company or any of its affiliated entities to terminate his or her employment in order to become an employee, consultant or independent contractor to or for any other employer.

Employee further agrees that during the Term and for a period of three years after termination of his employment for any reason, not to, directly or indirectly, either on his own behalf or on behalf of any other person or entity, utilize any Confidential Information and Proprietary Information, as defined above, to (i) attempt to persuade or solicit any customer of the Company or any of its affiliates to cease to do business or to reduce the amount of business which the customer has customarily done or contemplates doing with the Company or any of its affiliates or to expand its business with a competitor of the Company or any of its affiliates; (ii) attempt to persuade or solicit any employee of independent contractor of the Company or any of its affiliates to terminate his/her employment or relationship with the Company or any of its affiliates.

8.

Binding Effect/Successors.

a.

As to Employee, this is a personal service contract and Employee may not assign this Agreement or any part hereof.

b.

The Agreement is fully assignable by the Company.

 

9.

Notices. Any notice, consent or other communication under this Agreement shall be in writing and shall be delivered personally, telexed, sent by facsimile transmission or overnight courier (regularly providing proof of delivery) or sent by registered, certified, or express mail and shall be deemed given when so delivered personally, sent by facsimile transmission or overnight courier, or if mailed, two (2) days after the date of deposit in the United States mail. Notice to parties shall be delivered or mailed to the Employee’s last known place of residence based on the records of the Company, or in the case of the Company to its principal place of business located at 456 Seaton Street, Los Angeles, CA 90013, or at such other place as the Company may specify by written notice.

10.

Prior Agreements; Modification. Employee and Company understand and agree that this Agreement constitutes the entire Agreement between Employee and the Company concerning the scope of Employee’s employment with the Company, and that this Agreement supersedes any and all prior oral or written agreements and understandings between Employee and Company on such issues. No warranty, representation, condition, understanding or agreement of any kind with respect to the subject hereof shall be relied upon by the Employee of the Company unless incorporated herein. Notwithstanding any other provision contained herein, this Agreement may be pled as a thorough and complete defense to, and may be used as the basis for an injunction against, any action, suit or other proceeding that may be instituted, prosecuted or attempted in breach of the provisions contained herein.

11.

Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument, even though the parties do not sign the same counterpart.

12.

Choice of Law. The laws of the State of California shall govern the validity, interpretation, construction and performance of this Agreement.

13.

Arbitration. Employee and the Company agree that in the event a dispute arises concerning or relating to this Agreement, or the Employee’s employment with the Company, or any termination thereof, all such disputes shall be submitted to binding arbitration before an arbitrator experienced in employment law. The arbitration will be conducted in accordance with the rule s applicable to employment disputes of Judicial Arbitration and Mediation Services (“JAMS”). The Company will be responsible for paying any filing fees and costs of the arbitration proceeding itself (for example, arbitrator’s fees, conference room, transcripts), but each party shall be responsible for its own attorneys’ fees. The Company and Employee agree that this promise to arbitrate covers any disputes that the Company may have against Employee, or that Employee may have against the Company and all of its affiliated entities and their directors, officers, and employees, arising out of or relating to this Agreement, the employment relationship or termination of employment, including any claims concerning the validity, interpretation, effect or violation of this Agreement; violation of any federal, state, or local law; any tort; and any other aspect of Employee’s compensation or employment. The Company and Employee further agree that arbitration as provided in Section 15 shall be the exclusive and binding remedy for any such dispute and will be used instead of any court action which is hereby expressly waived, except for any request by either party hereto for temporary or preliminary injunctive relief pending arbitration in accordance with applicable law, or an administrative claim with an administrative agency. The Federal Arbitration Act shall govern the interpretation and enforcement of such arbitration proceeding. The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the State of California, or federal law, if

 

California law is preempted. The arbitration shall be conducted in Los Angeles, California, unless otherwise mutually agreed.

14.

Legal Advice. Each party has had an opportunity to review this Agreement with attorneys and other professional advisors of its choice. Employee acknowledges that she has not received or relied upon any advice concerning this agreement from any attorneys or other advisors of the Company.

15.

Headings. The headings of the sections are for convenience only and shall not control or affect the meaning or construction or limit the scope or intent of any of the provisions of this Agreement.

16.

Survival. Sections 6, 7, and 12 through 14 inclusive, hereof will survive any termination of this Agreement.

17.

Severability. If any provision of this Agreement shall be found invalid by any court of competent jurisdiction, such finding shall not affect the validity of any other provision hereof and the invalid provision shall be deemed to have been severed here from.

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

 

Schedule 1

Other Preapproved Activities

1.

Employee currently serves as Executive Chairman of the Board of Directors of Barefoot Luxury, Inc., an investment holding company of international boutique hotels that is majority controlled by members of Employee’s immediate family.

2.

Employee currently serves as Chairman of the Board of Directors of Chrysalis Fund, a not for profit charitable foundation benefiting children with autism co-founded with his spouse.

3.

Employee currently serves as Vice President of the North Atlanta High School Baseball Association, a volunteer not-for profit organization benefiting a public high school sports program in Atlanta, Georgia.ADVISORY AGREEMENT

 

EXHIBIT 10.49

ADVISORY AGREEMENT

THIS ADVISORY AGREEMENT (the “Agreement”) is made this 14th day of November, 2016 (the “Effective Date”) by and between SOCIAL REALITY, INC., a Delaware corporation (the “Company”), with its principal place of business located at 456 Seaton Street, Los Angeles, CA  90013 and kathy ireland Worldwide LLC (the “Advisor”), with its principal offices located care of PO Box 1410, Rancho Mirage, CA 92270.

R E C I T A L S

WHEREAS, the Company desires to retain the Advisor to provide certain advisory services as hereinafter set forth.

WHEREAS, the Advisor desires to provide certain advisory and consulting services to the Company in accordance with the terms and conditions contained hereinafter.

NOW, THEREFORE, in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.

Advisory Services.  During the Term of this Agreement, the Advisor is hereby retained by the Company on a non-exclusive basis to provide strategic advisory services (the “Services”) to the Company to be mutually agreed to from time to time which are anticipated to include: (i) if the Company forms an Advisory Committee of independent, third party brand, marketing and/or consumer product C-level executives, to serve on such committee on terms no less favorable than the highest compensated person on such committee, (ii)  as an advisor, hold the non-executive designation of Chief Branding Advisor, and (iii) provide reasonable input to the Company on various aspects of corporate branding, and (iv) use good faith efforts to introduce the Company to potential business customers.  The services provided by Advisor and her availability will, in all respects, be subject to the “Standard Terms and Conditions” set forth on Exhibit “A” attached hereto and incorporated herein by this reference and, in the event of any conflict between this Agreement and Exhibit “A”, Exhibit “A” shall control.  For the avoidance of doubt, any reference to Advisor or its affiliates by the Company or its affiliates, or any use of Advisor’s or its affiliates’ brand, name, use or likeness shall be subject to the prior written approval of Advisor (which may be withheld in its sole discretion) and further subject to the terms and conditions of Exhibit “A”.  If Company requests the Advisor to travel in connection with the rendering of any Services, Advisor shall be entitled to approve each such request (which approval may be withheld in the Advisor’s sole discretion), and any arrangements for such travel will be pursuant to the terms and conditions of Exhibit “A”.  

2.

Term; Termination.  The Term of this Agreement shall commence on the Effective Date as set forth above and end on December 31, 2018, (the “Expiration Date”).  Either party may terminate this Agreement in the event that the other party breaches or fails to perform any of its material obligations under this Agreement, or otherwise defaults in any of its material obligations under this Agreement, and such failure or default continues uncured for a period of thirty (30) days following written notice from the non-defaulting party (or if such 

 

breach, failure or default is not reasonably capable of cure without cost or liability to the non breaching party, then termination shall be effective immediately upon delivery of notice).  The parties acknowledge and agree that each term and provision on Exhibit “A” is a material obligation of the Company under this Agreement.

3.

Compensation; Investment Intent.

(a)

As full and complete compensation for the Services, on January 2, 2017, unless  Advisor has been convicted or pleaded no contest to a felony and, as a direct and proximate cause thereof, the rendering of services by Advisor on such date is impossible (the “Share Condition”), the Company shall issue the Advisor one hundred thousand (100,000) shares of the Company’s Class A common stock (the “Compensation Shares”), which such Compensation Shares shall be fully paid and non-assessable upon issuance thereof.  Notwithstanding any early termination of this Agreement pursuant to Section 2 hereof, the Compensation Shares shall be deemed earned upon the (i) execution of this Agreement by all parties and (ii) satisfaction of the Share Condition.  If Advisor and the Company are required to report the issuance of the Compensation Shares to any third party governmental or regulatory authority, the parties shall consult and mutually agree upon a consistent reporting position.

(b)

The Compensation Shares are “restricted securities” as that term is defined in the Securities Act of 1933, as amended (the “Securities Act”).  The Advisor has such knowledge and experience in financial, investment and business matters that it is capable of evaluating the merits and risks of the investment in the Compensation Shares and represents that it (i) has adequate means of providing for its current financial needs and possible personal contingencies, and has no need for liquidity of investment in the Company; (ii) can afford (a) to hold unregistered securities for an indefinite period of time and (b) sustain a complete loss of the entire amount of such securities; and (iii) has not made an overall commitment to investments which are not readily marketable which is disproportionate so as to cause such overall commitment to become excessive.  The Compensation Shares are being acquired by the Advisor solely for its account for personal investment and not with a view to, or for resale in connection with, any distribution.  The Advisor does not intend to dispose of all or any part of the Compensation Shares except in compliance with the provisions of the Securities Act and applicable state securities laws and understands that the Compensation Shares are being issued pursuant to a specific exemption under the provisions of the Securities Act, which exemption depends, among other things, upon the compliance with the provisions of the Securities Act.

(c)

The Company may insert the following or similar legend on the face of the certificate representing the Compensation Shares, if required in compliance with the Securities Act or state securities laws:

“These securities have not been registered under the Securities Act of 1933, as amended (“Securities Act”), or any state securities laws and may not be sold or otherwise transferred or disposed of except pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or an opinion of counsel satisfactory to counsel to the Social Reality, Inc. that an exemption from registration under the act and any applicable state securities laws is available.”

 

(d)

Advisor shall be permitted to transfer the Compensation Shares to the individuals and entities identified on Exhibit “B” attached hereto in the percentages set forth therein.  At the request of Consultant, Company shall issue and deliver new certificates respecting the ownership of the Compensation Shares as set forth on Exhibit “B”.

4.

Social Media Management.  During the Term and any extension(s) thereof, Company shall dedicate not less than two (2) of its employees on a full-time basis to manage and implement the various social media and marketing efforts and initiatives contemplated in connection with the Advisor’s performance of Services hereunder (each a “Company Contact”).  All activities of the Company Contacts shall be subject to the advanced review and approval of Advisor.  Advisor shall also have right of prior approval over each individual Company intends to allocate to the roles provided in this Section 3, and Company shall remove and replace any Company Contact upon the request of the Advisor (provided further that any such replacement also to be subject to the Advisor’s approval).  The services rendered by Company Contacts will be in mutual cooperation with the Advisor to achieve the objectives of this Agreement. The Advisor acknowledges that the Company Contacts will coordinate with specific departments inside Company to carry out the business under this Agreement.

5.

Expenses.  The Advisor shall be reimbursed for all out of pocket costs and expenses incurred by it in the performance of the Services hereunder subject to preapproval by the Company.  Should the Advisor be requested to travel on the Company's behalf, the Company shall pay all expenses in accordance with Exhibit “A”.  In addition to the foregoing, the Company shall pay all reasonable fees and expenses incurred by Advisor’s legal, tax and accounting advisors in connection with the negotiation and execution of this Agreement up to an aggregate amount of $10,000.

6.

Return of Documents.  On termination of this Agreement or at any time upon the request of Company in writing, Advisor shall return to Company all documents, including all copies thereof, and all other property relating to the business of Company and/or its subsidiaries, including without limitation, the Confidential Information (as hereinafter defined), in its possession or control.

7.

Amendment or Assignment.  No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is evidenced by a written instrument, executed by the party against which such modification, waiver, amendment, discharge or change is sought.  This Agreement is not assignable by the Advisor without the prior written consent of the Company, which such consent may not be forthcoming; provided, that for the avoidance of doubt, assignment by Advisor of one or more advisory services to its employees or affiliates shall not constitute a violation of this Agreement.

8.

Confidentiality.

(a)

In connection with the performance of the Services contemplated by this Agreement, the Advisor and its affiliates may gain access to Confidential Information (as hereinafter defined) of the Company.  Confidential Information includes information communicated orally, in writing, by electronic or magnetic media, by visual observation, or by other means, and may be marked confidential or proprietary, or bear a marking of like import, or 

 

which the Company states to be confidential or proprietary, or which would logically be considered confidential or proprietary under circumstances of its disclosure known to Advisor. No rights or licenses to trademarks, inventions, copyrights, patents or any other intellectual property rights are implied or granted under this Agreement or by the conveying of Confidential Information to Advisor.

(b)

The Advisor acknowledges and understands that: (i) Confidential Information provides the Company with a competitive advantage (or that could be used to the disadvantage of the Company by a competitor); (ii) the Company has a continuing interest in maintaining the confidentiality of Confidential Information; and (iii) the Company has a compelling business interest in preventing unfair competition stemming from the use or disclosure of Confidential Information.

(c)

For purposes hereof, “Confidential Information” includes, but is not limited to, information pertaining to business plans, joint venture agreements, licensing agreements, financial information, contracts, customers, products, trade secrets, specifications, designs, plans, drawings, software, data, prototypes, processes, methods, research, development or other information relating to the business activities and operations of the Company.

(d)

The Advisor agrees, and shall use reasonable efforts, to cause its controlled affiliates to agree, to keep Confidential Information confidential and, except as authorized by the Company, Advisor shall not, directly or indirectly, use Confidential Information for any reason except in a manner Advisor believes reasonable or appropriate to perform the Services under this Agreement.  The Advisor acknowledges that such Confidential Information could be deemed to be material non-public information that is not generally available to the public.  The Advisor further acknowledges its understanding that federal securities laws strictly prohibit any individual or entity who obtains inside information, and has a duty not to disclose it such as the Advisor, from using the information in connection with the purchase or sale of securities, and Company shall advise Advisor whether information disclosed to it constitutes material, nonpublic information.

(e)

The restrictions in subsection (d) of this Section shall not apply to any Confidential Information that: (i) is or becomes available to the public through no breach of this Agreement by Advisor; (ii) was previously known by Advisor or its affiliates; (iii) is received from a third party free to disclose such information without restriction; (iv) is independently developed by Advisor or its affiliates  without the use of the Confidential Information; (v) is approved for release by written authorization of the Company or its affiliates; (vi) is required by law or regulation to be disclosed, but only to the extent and for the purposes of such required disclosure; or (vii) is disclosed in response to an order or request of a governmental agency, provided that Advisor notifies the Company of the order or request ten (10) days prior to disclosure and permits the Company to seek an appropriate protective order.

9.

Indemnity; Insurance.

(a)

Indemnity:  The Company shall indemnify, defend, and hold Advisor and its affiliates harmless, at Company’s own expense, from and against any and all losses, liability, obligations, damages, third-party claims, demands, causes of action, costs and expenses of 

 

whatever form or nature (each a “Claim” and collectively, “Claims”), including reasonable outside attorney’s fees and other costs of legal defense, arising out of or related to: (i) the Advisor’s rendering of Services under this Agreement; (ii) an actual or alleged breach of any of the representations, warranties or covenants of this Agreement by the Company; (iii) Company’s negligence, willful misconduct, or willful misrepresentation; or (iv) any other act or omission by or attributable to Company in connection with this Agreement except to extent such indemnity is prohibited by law.  Company shall give prompt written notice to the Advisor of any proposed settlement of any Claim. Company may not, without the Advisor’s prior written consent, which the Advisor shall not unreasonably withhold, condition or delay, settle or compromise any claim or consent to the entry of any judgment regarding which indemnification is being sought hereunder unless such settlement, compromise or consent: (X) includes an unconditional release of the Advisor from all liability arising out of such claim; (Y) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Advisor; and (Z) does not contain any equitable order, judgment or term (other than the fact of payment or the amount of such payment) that in any manner affects, restrains or interferes with the business of the Advisor. Provided, however, that the indemnity agreement contained in this Section 9(a) shall not apply to any such losses, claims, related expenses, damages or liabilities arising out of gross negligence, willful misconduct or fraud of the Advisor, or a material breach of the Advisor’s representations and warranties hereunder.

(b)

Exculpation:  Notwithstanding anything to the contrary herein, the Advisor shall, to the greatest extent permitted by law at the time this clause is construed, be exculpated from any liability whatsoever for any alleged abuse of discretion, tort, breach of fiduciary duty and/or breach of trust caused by any act or omission in connection with this Agreement.  As a consequence, the Advisor shall under no circumstances ever be held personally liable to any other person, firm or corporation for any damages directly or indirectly arising out of any act or omission committed in connection with this Agreement.  This exculpation shall not, however, protect the Advisor from any liability for a breach of trust committed intentionally or in bad faith.  Even if this Section 9(b) shall not protect the Advisor due to the foregoing sentence, in no event shall the Advisor ever be liable for any punitive or exemplary damages for any act or omission committed in connection with this Agreement hereunder regardless of whether such act or omission constituted an act committed intentionally or in bad faith.

(c)

Insurance: The Company has procured, and shall continue to maintain, policies of director and officer insurance that provides to the same coverage to Advisor and its affiliates as is provided to any officer and director of the Company which policies shall provide, at a minimum, the coverage set forth on Exhibit “C” attached hereto and incorporated herein by this reference.

10.

Waiver. Unless agreed in writing, the failure of either party, at any time, to require performance by the other of any provisions hereunder shall not affect its right thereafter to enforce the same, nor shall a waiver by either party of any breach of any provision hereof be taken or held to be a waiver of any other preceding or succeeding breach of any term or provision of this Agreement. No extension of time for the performance of any obligation or act shall be deemed to be an extension of time for the performance of any other obligation or act hereunder.

 

11.

Notices. All notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly given on the day when delivered in person or transmitted by confirmed facsimile transmission or on the third (3rd) calendar day after being mailed by United States registered or certified mail, return receipt requested, postage prepaid, to the addresses hereinabove first mentioned or to such other address as any party hereto shall designate to the other for such purpose in the manner herein set forth.

12.

Entire Agreement.  This Agreement contains all of the understandings and agreements of the parties with respect to the subject matter discussed herein.  All prior agreements, whether written or oral, are merged herein and shall be of no force or effect.

13.

Survival. Any termination of this Agreement shall not, however, affect the ongoing provisions of this Agreement which shall survive such termination in accordance with their terms.

14.

Severability.  The invalidity, illegality or unenforceability of any provision or provisions of this Agreement will not affect any other provision of this Agreement, which will remain in full force and effect, nor will the invalidity, illegality or unenforceability of a portion of any provision of this Agreement affect the balance of such provision.  In the event that any one or more of the provisions contained in this Agreement or any portion thereof shall for any reason be held to be invalid, illegal or unenforceable in any respect, this Agreement shall be reformed, construed and enforced as if such invalid, illegal or unenforceable provision had never been contained herein.

15.

Governing Law. This Agreement shall become valid when executed and accepted by Company. This Agreement shall be construed in accordance with the laws of the State of California, without an application of the principles of conflicts of laws.  Anything in this Agreement to the contrary notwithstanding, the Advisor shall conduct the Advisor's business in a lawful manner and faithfully comply with applicable laws or regulations of the state, city or other political subdivision in which the Advisor is located.

16.

Enforcement.  Any suit, action or proceeding with respect to this Agreement shall be brought in the state or federal courts located in Los Angeles County in the State of California.  The parties hereto hereby accept the exclusive jurisdiction and venue of those courts for the purpose of any such suit, action or proceeding.  The parties hereto hereby irrevocably waive, to the fullest extent permitted by law, any objection that any of them may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any judgment entered by any court in respect thereof brought in Los Angeles County, California, and hereby further irrevocably waive any claim that any suit, action or proceeding brought in Los Angeles County, California has been brought in an inconvenient form.

17.

Binding Nature, No Third Party Beneficiary.  The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties, and their respective successors and assigns.  

 

18.

Counterparts.  This Agreement may be executed in any number of counterparts, including facsimile signatures which shall be deemed as original signatures.  All executed counterparts shall constitute one agreement, notwithstanding that all signatories are not signatories to the original or the same counterpart.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

			
	 
	THE COMPANY

	 
	 

	 
	SOCIAL REALITY, INC.

	 
	 
	 

	 
	By: 

	/s/ Christopher Miglino

	 
	 
	Christopher Miglino, Chief Executive Officer

	 
	 
	 

	 
	kathy ireland Worldwide LLC

	 
	 
	 

	 
	By: 

	/s/ Kathy Ireland

	 
	 
	Kathy Ireland, Chief Executive Officer

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