Document:

Unassociated Document

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT is made and entered into as of the 30th day of April, 2014 (the “Agreement”), by and between CMG HOLDINGS GROUP, INC., a Nevada corporation (“CMG”), having its principal place of business at 875 North Michigan Avenue, Chicago, IL 60611, and Glenn Laken (“Employee”) of CMG (Employee and CMG are collectively referred to as the “Parties”).

 

WITNESSETH:

 

WHEREAS, CMG is engaged in the business of experiential advertising and marketing through its subsidiary, XA, The Experiential Agency, Inc. (“XA”) and on-line gaming, through its subsidiary, Good Gaming, Inc. (“GGI”)(the “Businesses”); and

 

WHEREAS, Employee has represented that he has the experience, background and expertise necessary to enable him to be CMG’s Chief Executive Officer and to manage the businesses of XA and GGI; and

 

WHEREAS, based on such representation, on April 7, 2014, the Board (as defined below) approved to appoint and employ Employee as CMG’s Chief Executive Officer and grant Employee a warrant to purchase a total of forty million (40,000,000) shares of Common Stock at an exercise price of $0.0155 with a term of five years (the “Warrants”);

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements herein contained, and other good and valuable consideration, the Parties agree as follows:

 

	
1.

	
DEFINITIONS.  As used herein, the following terms shall have the following meanings:

 

1.1 “Affiliate” means any Person controlling, controlled by or under common control with CMG, including XA and GGI.

 

1.2  “Board” means the Board of Directors of CMG Holdings Group, Inc.

 

1.3  “Cause” means:

 

	
  

	
1.3.1

	
Employee’s persistent failure to perform his duties and responsibilities as set forth in a written job description as designated by the Board after delivery of written notice to Employee detailing the basis for such failure, with a reasonable opportunity for Employee to cure such failure (not to exceed 30 days); provided, however, if Employee shall be diligently pursuing a cure, CMG may, in its discretion, extend such period for a reasonable period of time;

 

	
  

	
1.3.2

	
Employee’s knowing participation in any activity that is competitive with or financially injurious to CMG;

 

  

  

  

 

 

	
  

	
1.3.3

	
Employee’s commission of any fraud against CMG, or unauthorized use or appropriation of any funds or properties of CMG for Employee’s personal gain;

 

	
  

	
1.3.4

	
Employee’s conviction of a felony offense involving moral turpitude;

 

	
  

	
1.3.5

	
Employee’s knowing misappropriation of trade secrets or proprietary information of CMG, CMG customers, suppliers or other third parties, who have provided confidential or proprietary information to CMG pursuant to an effective confidentiality agreement with CMG;

 

1.4 “Common Stock” means CMG’s $.001 par value per share common stock.

 

1.5 “Date of Termination” means (a) in the case of a termination for which a Notice of Termination (as hereinafter defined in Section 5.4.3) is required, the date of actual receipt of such Notice of Termination or, if later, the date specified therein, as the case may be, and (b) in all other cases, the actual date on which the Employee’s employment terminates during the Term of Employment (as hereinafter defined in Section 3) (it being understood that nothing contained in this definition of “Date of Termination” shall affect any of the cure rights provided to the Employee or CMG in this Agreement).

 

1.6 “Disability” means Employee’s inability to render, for a period of nine (9) consecutive months, services hereunder due to his physical or mental incapacity.

 

1.7 “Effective Date” means April 7, 2014.

 

1.8 “Person(s)” means any individual or entity of any kind or nature, including any other person as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, and as used in Sections 13(d) and 14(d) thereof.

 

1.9 “Prospective Customer” shall mean any Person which has either (a) entered into a nondisclosure agreement with CMG, XA or GGI or any other CMG subsidiary or (b) has within the preceding 12 months received a currently pending and not rejected written proposal in reasonable detail from CMG, XA, GGI or another CMG subsidiary.

 

1.10 “Severance Payments” shall mean any payments made under section 5.3.5.

 

	
2.

	
EMPLOYMENT.

 

2.1 Agreement to Employ. Effective as of the Effective Date, CMG hereby agrees to employ Employee, and Employee hereby agrees to serve, subject to the provisions of this Agreement, as an officer and employee of CMG.

 

2.2 Duties and Schedule. Employee shall serve as CMG’s Chief Executive Officer and shall have such responsibilities as designated by the Board that are not inconsistent with applicable laws, regulations and rules. Employee shall report directly to the Board as circumstances may require.

 

  

2

  

 

3.             TERM OF AGREEMENT. Unless Employee’s employment shall sooner terminate pursuant to Section 5, CMG shall employ Employee for a term commencing on the Effective Date and ending on the fifth anniversary thereof, which shall be renewed for additional three-year terms unless notice of non-renewal is received by Employee from CMG within ninety (90) days of the end of the initial five year term or a subsequent three year renewal term.  The period during which Employee is employed pursuant to this Agreement shall be referred to as the “Term” or the “Term of Employment”.

 

	
4.

	
COMPENSATION.

 

4.1 Salary. Employee’s salary during the Term shall be $180,000 per year (the “Salary”) payable in accordance with CMG’s normal payroll practices. All applicable withholding taxes shall be deducted from such payments. The Board, or the Compensation Committee of the Board, if any, will review Employee’s Salary at least once per year and may, in its discretion, increase (but not decrease) the Salary in accordance with CMG’s compensation policies.  In the event that the Company lacks sufficient cash to pay the Salary, the Company may, at Employee’s discretion either (i) accrue the Salary until such time as it can be paid in cash; provided, however that the Salary may not be accrued for more than four (4) months or (ii) pay the Salary in Company common stock at a price equal to the 30-day trailing volume weighted average price as reported by Bloomberg, L.P. prior to the date the Salary is due.

 

4.2 Cash Bonus. Employee shall be entitled to cash bonuses as may be granted in the discretion of the Board.

 

4.3 Equity Compensation. Employee hereby acknowledges receipt of the Warrants as compensation hereunder.

 

4.4 Health Insurance; Other Employee Benefits. During the Term, Employee shall receive such health coverage as is available to employees of CMG and/or any CMG subsidiary.    In addition, during the Term, Employee shall be eligible to participate in any other employee benefit plan, program or practice, in each case, sponsored by CMG for its executives or employees on terms and conditions set forth in such programs and plans (as amended from time to time).

 

4.5 Vacation. Employee shall be entitled to four (4) weeks of paid vacation per calendar year taken at such times so as to not materially impede his duties hereunder. Vacation days that are not taken may not be carried over into future years.  Illness days shall be consistent with CMG’s standard policies.

 

4.6 Monthly Allowances. Employee shall receive allowances of $1,000 per month for purposes such as automobile, cellular phone and other expenses reasonably related to the Businesses.

 

4.7 Business Expenses. Employee shall be reimbursed by CMG for all ordinary and necessary expenses incurred by Employee in the performance of his duties hereunder on behalf of CMG, XA, GGI or any other subsidiary.

 

  

3

  

 

	
5.

	
TERMINATION.

 

5.1 Termination Due to Death or Disability.

 

	
  

	
5.1.1

	
Death. This Agreement shall terminate immediately upon the death of Employee.  Upon Employee’s death, Employee’s estate or Employee’s legal representative, as the case may be, shall be entitled to Employee’s accrued and unpaid Salary and vacation as of the date of Employee’s death, plus all other compensation and benefits that were vested through the date of Employee’s death, including, but not limited to, any vested and unpaid or granted and unpaid annual bonus and equity award(s) for the calendar year prior to Employee’s death.

 

	
  

	
5.1.2

	
Disability. In the event of Employee’s Disability, this Agreement shall terminate and Employee shall be entitled to receive the following: (i) continuation of Employee’s Salary for Employee’s Disability period (it being understood that such period will be nine months from the first date that Employee is unable to work), and (ii) any unvested equity compensation will continue to vest for a period of three (3) years after the Employee’s Disability occurs. In addition, Employee shall also be entitled to (a) accrued and unpaid vacation as of the Date of Termination; and (b) all other compensation and benefits that were vested through the Date of Termination, including, but not limited to, any vested and unpaid or granted and unpaid annual bonus and equity award(s) through the first day of Employee’s Disability.

 

5.2 Termination by CMG for Cause.  CMG may terminate Employee’s employment hereunder for Cause by delivery of written notice to Employee specifying the cause or causes relied upon for such termination. If CMG terminates Employee’s employment hereunder for Cause, Employee shall be entitled only to (a) Employee’s accrued and unpaid Salary and vacation through the Date of Termination; and (b) all other compensation and benefits that were vested through the Date of Termination, including, but not limited to, any vested and unpaid or granted and unpaid annual bonus and equity award(s) through the Date of Termination.

 

5.3 Termination Without Cause. CMG may terminate the Employee’s employment hereunder without Cause. If CMG terminates the Employee’s employment hereunder without Cause, other than due to death or Disability, the Employee shall be entitled to only the following:

 

	
  

	
5.3.1

	
Employee’s accrued and unpaid Salary and vacation through the Date of Termination;

 

	
  

	
5.3.2

	
all other compensation and benefits that were granted through the Date of Termination, including but not limited to, any granted and unpaid annual bonus and equity award(s) through the Date of Termination. All such granted equity awards(s) that have not vested shall immediately vest upon the Date of Termination;

 

  

4

  

 

	
  

	
5.3.3

	
All equity compensation shall immediately vest; and

 

	
  

	
5.3.4

	
CMG shall continue or cause to be continued at the expense of CMG the Employee’s life and medical insurance benefits in effect immediately prior to the Date of Termination until the earlier of: (a) two (2) years from the Date of Termination, (b) the date Employee reaches normal retirement age, (c) the date on which Employee becomes eligible for coverage under another employer’s plan, or (d) Employee’s cancellation of such coverage in writing; and

 

	
  

	
5.3.5

	
Employee shall be entitled to Severance Payments as set forth below:

 

	
  

	
5.3.5.1

	
In the event that during the Term, CMG terminates Employee’s employment hereunder without Cause or Employee terminates the employment for Good Reason, as defined below in Section 5.4, Employee shall be entitled to the severance payments in the amount equal to the Salary that he would have received for a period of one (1) year immediately after the Date of Termination;

 

	
  

	
5.3.5.2

	
All Severance Payments set forth in this Section 5.3.5 are subject to the following conditions: (a) Employee shall perform such reasonable duties as may be requested by CMG during the period the Severance Payments set forth in this Section 5.3.5 are made; (b) Employee shall refrain from disparaging CMG, CMG and any of their directors, officers, employees or affiliates and CMG shall refrain from denigrating Employee; and (c) Employee cooperates with CMG in all reasonable requests to transition Employee’s replacement.  Subject to Employee’s compliance with the foregoing, all Severance Payments set forth in this Section 5.3.5 shall be paid to Employee in installments over the Term, with the first installment payment, which shall cover the period from Employee’s Date of Termination to the first regularly scheduled CMG payroll date that occurs after the fifty-fifth (55th) day following Employee’s Date of Termination, shall be paid to Employee on such regularly scheduled payroll date after such fifty-fifth (55th) day and the remaining amounts shall be paid to Employee in installments over the remainder of the Term in accordance with CMG’s regularly scheduled payroll dates, commencing with CMG’s first regularly scheduled payroll date that occurs after such first payment.

 

  

5

  

 

5.4 Termination by Employee. Any termination of this Agreement by Employee by formal notice shall have the same effect as a termination by CMG for Cause, unless Employee terminates employment for “Good Reason” as defined below.  A termination for Good Reason shall have the same effect as a termination by CMG without Cause.

 

	
  

	
5.4.1

	
For purposes of this Agreement “Good Reason” shall mean 1) a material diminution in Employee’s duties and responsibilities, or material change in reporting structure; 2) CMG shall default in the performance of any of its material obligations under this Agreement (provided that, in any such case, Employee shall have provided the Board with written notice of such default and not less than thirty (30) days to cure such default); 3) the occurrence of a Change of Control (as defined below); or 4) CMG requests that Employee engage in any illegal conduct, or retaliates against Employee for objecting to any illegal conduct by CMG.

 

	
  

	
5.4.2

	
For purposes of this Agreement, “Change in Control” shall mean:  (i) any acquisition by any person or any persons acting together which would constitute a “group” for purposes of Section 13(d) of the Securities Exchange Act of 1934 (a “Group”) of fifty percent (50%) or more of the total voting power of all classes of capital stock of CMG entitled to vote generally in the election of the Board; (ii) any other acquisition by any person or group of the power to elect, appoint or cause the election or appointment of at least a majority of the members of the Board through beneficial ownership of the capital stock or otherwise; (iii) the merger or consolidation of CMG as a result of which persons who were stockholders of CMG immediately prior to such merger or consolidation, do not, immediately thereafter, own, directly or indirectly, 50% or more of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated company; (iv) the sale, transfer or other disposition of all or substantially all of the assets of CMG through one transaction or a series of related transactions to one or more persons or entities who are not, immediately prior to such sale, transfer or other disposition, stockholders of CMG immediately prior to such sale(s), transfer(s) or other disposition(s). Notwithstanding the foregoing, or anything to the contrary contained herein, it shall not be a Change in Control if any of the foregoing transactions are approved in writing by persons who, as of the date of this Agreement, in the aggregate, own more than 50% of the voting stock of CMG.

 

	
  

	
5.4.3

	
Notice of Termination.  Any termination of the Employee by CMG shall be communicated by a notice of termination to the Employee given in accordance with Section 8.4 of this Agreement (the “Notice of Termination”).  Such notice shall (a) indicate the specific termination provision in this Agreement relied upon and (b) if the termination date is other than the date of receipt of such notice, specify the dates on which the Employee’s employment is to be terminated (which date shall not be earlier than the date on which such notice is given).

 

5.5 Payment. Except as otherwise provided in this Agreement, more specifically excluding Severance Payments, any payments to which the Employee shall be entitled under this Section 5, including, without limitation, any economic equivalent of any benefit, shall be made as promptly as possible following the Date of Termination, but in no event more than 30 days after the Date of Termination.  If the amount of any payment due to the Employee cannot be finally determined within 30 days after the Date of Termination, such amount shall be reasonably estimated on a good faith basis by CMG and the estimated amount shall be paid no later than thirty (30) days after such Date of Termination.  As soon as practicable thereafter, the final determination of the amount due shall be made and any adjustment requiring a payment to Employee shall be made as promptly as practicable.  The payment of any amounts under this Section 5 shall not affect Employee’s rights to receive any workers’ compensation benefits.

 

  

6

  

 

5.6 No Exclusivity of Rights. Nothing in this Agreement shall prevent or limit Employee’s continuing or future participation in any plan, program, policy or practice provided by CMG or its subsidiaries, if any, and for which the Employee may qualify, nor shall anything herein limit or otherwise affect such rights as Employee may have under any other contract or agreement with the CMG or its subsidiaries, at or subsequent to the Date of Termination (“Other Benefits”), which such Other Benefits shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as explicitly modified by this Agreement. Notwithstanding the foregoing, if Employee receives payments and benefits pursuant to Section 5.3 of this Agreement, Employee shall not be entitled to any severance pay or benefits under any severance plan, program or policy of CMG, unless otherwise specifically provided therein in a specific reference in or to this Agreement.

 

	
6.

	
EMPLOYEE’S REPRESENTATIONS. The Employee represents and warrants to CMG that: (a) he is subject to no contractual, fiduciary or other obligation which may affect the performance of his duties under this Agreement; (b) he has terminated, in accordance with their terms, any contractual obligation which may affect his performance under this Agreement; (c) his employment with CMG will not require him to use or disclose proprietary or confidential information of any other person or entity; and (d) any other agreements he previously had with CMG with respect to a consulting arrangement are hereby terminated and of no further force or effect.

 

	
7.

	
NON-COMPETITION: NON-DISCLOSURE; INVENTIONS.

 

7.1 Trade Secrets. Employee acknowledges that his employment position with CMG is one of trust and confidence. Employee further understands and acknowledges that, during the course of Employee's employment with CMG, Employee will be entrusted with access to certain confidential information, specialized knowledge and trade secrets which belong to CMG including but not limited to, their methods of operation and developing customer base, its manner of cultivating customer relations, its practices and preferences, current and future market strategies, formulas, patterns, patents, devices, secret inventions, processes, compilations of information, records, and customer lists, all of which are regularly used in the operation of their business and which Employee acknowledges have been acquired, learned and developed by them only through the expenditure of substantial sums of money, time and effort, which are not readily ascertainable, and which are discoverable only with substantial effort, and which thus are the confidential and the exclusive Property of CMG (hereinafter “Trade Secrets”). Employee covenants and agrees to use his best efforts and utmost diligence to protect those Trade Secrets from disclosure to third parties.  Employee further acknowledges that, absent the protections afforded CMG in Section 7, Employee would not be entrusted with any of such Trade Secrets. Accordingly, Employee agrees and covenants (which agreement and covenant shall survive the termination of this Agreement regardless of the reason) as follows:

 

	
  

	
7.1.1

	
Employee will at no time take any action or make any statement that will disparage or discredit CMG, any of its subsidiaries or their products or services;

 

  

7

  

 

	
  

	
7.1.2

	
During the period of Employee's employment with CMG and for twenty-four (24) months immediately following the termination of such employment, Employee will not disclose or reveal to any person, firm or corporation other than in connection with the business of CMG or as may be required by law, any Trade Secret used or useable by CMG or any of its subsidiaries, divisions or Affiliates (collectively the “Companies”) in connection with their respective businesses, known to Employee as a result of his employment by CMG, or other relationship with the Companies, and which is not otherwise publicly available. Employee further agrees that during the term of this Agreement and at all times thereafter, he will keep confidential and not disclose or reveal to any person, firm or corporation other than in connection with the business of the Companies or as may be required by applicable law, any information received by him during the course of his employment with regard to the financial, business, or other affairs of the Companies, their respective officers, directors, customers or suppliers which is not publicly available;

 

	
  

	
7.1.3

	
Upon the termination of Employee's employment with CMG, Employee will return to CMG all documents, customer lists, customer information, product samples, presentation materials, drawing specifications, equipment and other materials relating to the business of any of the Companies, which Employee hereby acknowledges are the sole and exclusive property of the Companies or any one of them.  Nothing in this Agreement shall prohibit Employee from retaining, at all times any document relating to his personal entitlements and obligations, his rolodex, his personal correspondence files; and any additional personal property;

 

	
  

	
7.1.4

	
During the term of the Agreement and, for a period of twenty-four (24) months immediately following the termination of the Employee's employment with CMG, Employee shall not: compete, or participate as a shareholder, director, officer, partner (limited or general), trustee, holder of a beneficial interest, employee, agent of or representative in any business competing directly with the Companies without the prior written consent of CMG, which may be withheld in CMG’s sole discretion; provided, however, that nothing contained herein shall be construed to limit or prevent the purchase or beneficial ownership by Employee of less than five percent of any security registered under Section 12 or 15 of the Securities Exchange Act of 1934;

 

  

8

  

 

	
  

	
7.1.5

	
During the term of the Agreement and, for a period of twenty-four (24) months immediately following the termination of the Employee's employment with CMG, Employee will not:

 

	
  

	
7.1.5.1

	
solicit or accept competing business from any customer of any of the Companies or any person or entity known by Employee to be or have been, during the preceding 18 months, a customer or Prospective Customer of any of the Companies without the prior written consent of CMG;

 

	
  

	
7.1.5.2

	
encourage, request or advise any such customer or Prospective Customer of any of the Companies to withdraw or cancel any of their business from or with any of the Companies; or

 

	
  

	
7.1.6

	
Employee will not during the period of his employment with CMG and, subject to the provisions hereof for a period of twenty-four (24) months immediately following the termination of Employee's employment with CMG,

 

	
  

	
7.1.6.1

	
conspire with any person employed by any of the Companies with respect to any of the matters covered by this Section 7;

 

	
  

	
7.1.6.2

	
encourage, induce or solicit any person employed by any of the Companies to facilitate Employee's violation of the covenants contained in this Section 7;

 

	
  

	
7.1.6.3

	
assist any entity to solicit the employment of any employee of any of the Companies; or

 

	
  

	
7.1.6.4

	
employ or hire any employee of any of the Companies, or solicit or induce any such person to join the Employee as a partner, investor, coventurer, or otherwise encourage or induce them to terminate their employment with any of the Companies. Employee shall not be deemed to hire any such person so long as Employee did not directly or indirectly engage in or encourage such hiring.

 

7.2 Employee expressly acknowledges that all of the provisions of this Section 7 of this Agreement have been bargained for and Employee's agreement hereto is an integral part of the consideration to be rendered by the Employee which justifies the rate and extent of the compensation provided for hereunder.

 

7.3 Employee acknowledges and agrees that a violation of any one of the covenants contained in this Section 7 shall cause irreparable injury to CMG, that the remedy at law for such a violation would be inadequate and that CMG shall thus be entitled to temporary injunctive relief to enforce that covenant until such time that a court of competent jurisdiction either (i) grants or denies permanent injunctive relief or (ii) awards other equitable remedy(s) as it sees fit.

 

  

9

  

 

7.4 Successors.

 

	
  

	
7.4.1

	
Employee. This Agreement is personal to Employee and, without the prior express written consent of CMG, shall not be assignable by Employee, except that Employee’s rights to receive any compensation or benefits under this Agreement may be transferred or disposed of pursuant to testamentary disposition, intestate succession or a qualified domestic relations order or in connection with a Disability. This Agreement shall inure to the benefit of and be enforceable by Employee’s estate, heirs, beneficiaries, and/or legal representatives.

 

	
  

	
7.4.2

	
CMG. This Agreement shall inure to the benefit of and be binding upon CMG and its successors and assigns.

 

7.5 Inventions and Patents. CMG shall be entitled to the sole benefit and exclusive ownership of any inventions or improvements in drugs, products, processes, or other things that may be made or discovered by Employee while he is in the service of CMG, and all patents for the same. During the Term, Employee shall do all acts necessary or required by CMG to give effect to this section and, following the Term, Employee shall do all acts reasonably necessary or required by CMG to give effect to this section.  In all cases, CMG shall pay all costs and fees associated with such acts by Employee.

 

	
8.

	
MISCELLANEOUS.

 

8.1 Indemnification.  CMG and each of its subsidiaries shall, to the maximum extent provided under applicable law, indemnify and hold Employee harmless from and against any expenses, including reasonable attorney’s fees, judgments, fines, settlements and other legally permissible amounts (“Losses”), incurred in connection with any proceeding arising out of, or related to, Employee’s employment by CMG, other than any such Losses incurred as a result of Employee’s negligence or willful misconduct.  CMG shall, or shall cause a subsidiary thereof to, advance to Employee any expenses, including attorney’s fees and costs of settlement, incurred in defending any such proceeding to the maximum extent permitted by applicable law.  Such costs and expenses incurred by Employee in defense of any such proceeding shall be paid by CMG or applicable subsidiary in advance of the final disposition of such proceeding promptly upon receipt by CMG of (a) written request for payment; (b) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment is being sought; and (c) an undertaking adequate under applicable law made by or on behalf of Employee to repay the amounts so advanced if it shall ultimately be determined pursuant to any non-appealable judgment or settlement that Employee is not entitled to be indemnified by CMG or any subsidiary thereof. CMG will provide Employee with coverage under all director’s and officer’s liability insurance policies which is has in effect during the Term, with no deductible to Employee.

 

8.2 Applicable Law. Except as may be otherwise provided herein, this Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, applied without reference to principles of conflict of laws.

 

  

10

  

 

8.3 Amendments. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors or legal representatives.

 

8.4 Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand-delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Employee:

Glenn Laken

2130 North Lincoln Park West

Apartment 8N

Chicago, IL  60614

 

If to CMG:

CMG Holdings Group, Inc.

875 North Michigan Avenue

Chicago, IL 60611

Phone: 646-688-6381

E-mail: captjedge@aol.com

 

With a copy to (which shall not constitute notice):

 

Ofsink, LLC

230 Park Avenue, Suite 851

New York, New York 10169

Attn: Darren Ofsink

Facsimile: 646-224-9844

 

Or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notices and communications shall be effective when actually received by the addressee.

 

8.5 Withholding. CMG may withhold from any amounts payable under the Agreement, such federal, state and local income, unemployment, social security and similar employment related taxes and similar employment related withholdings as shall be required to be withheld pursuant to any applicable law or regulation.

 

8.6 Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and any such provision which is not valid or enforceable in whole shall be enforced to the maximum extent permitted by law.

 

  

11

  

 

8.7 Captions. The captions of this Agreement are not part of the provisions and shall have no force or effect.

 

8.8 Entire Agreement. This Agreement contains the entire agreement among the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto.

 

8.9 Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement or the Employee’s employment hereunder to the extent necessary to the intended preservation of such rights and obligations.

 

8.10 Waiver. Either Party's failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

 

8.11 Joint Efforts/Counterparts. Preparation of this Agreement shall be deemed to be the joint effort of the parties hereto and shall not be construed more severely against any party.  This Agreement may be signed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

 

8.12 Representation by Counsel.   Each Party hereby represents that it has had the opportunity to be represented by legal counsel of its choice in connection with the negotiation and execution of this Agreement.

 

8.13 No Mitigation. Employee shall have no duty to seek other employment and the amounts, benefits and entitlements payable to Employee hereunder or otherwise shall not be subject to reduction, offset or repayment for any compensation received by Employee from services provided by Employee following the termination of Employee’s employment with CMG.

 

8.14 Section 409A.

 

	
  

	
8.14.1

	
The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  In no event whatsoever shall CMG be liable for any additional tax, interest or penalty that may be imposed on the Employee by Code Section 409A or damages for failing to comply with Code Section 409A.

 

	
  

	
8.14.2

	
A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  Notwithstanding anything to the contrary in this Agreement, if the Employee is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of the Employee, and (B) the date of the Employee’s death, to the extent required under Code Section 409A.  Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 8.14 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Employee in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

  

12

  

 

	
  

	
8.14.3

	
To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Employee, (B) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

	
  

	
8.14.4

	
For purposes of Code Section 409A, the Employee’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of CMG.

 

	
  

	
8.14.5

	
Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

 

  

13

  

 

8.15 Adjustment. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that as a result of any payment or distribution by CMG to or for Employee’s benefit whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Payments”), Employee would be subject to the excise tax imposed by Sections 409A, 280G or Section 4999 of the Internal Revenue Code or any interest or penalties are incurred by Employee with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that, after payment by the Employee of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes and Excise Tax imposed upon the Gross-Up Payment, Employee is in the same after-tax position as if no Excise Tax had been imposed upon Employee with respect to the Payments, provided further that such Gross-Up Payment shall be made prior to April 15th of the calendar year following the year in which Employee receive any payment or distribution from CMG which gives rise to a Gross-Up Payment.

 

-- Signature page follows --

 

  

14

  

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

	
EMPLOYEE:

 

/s/ Glenn Laken                                              

Glenn Laken

	  	
CMG HOLDINGS GROUP, INC.

 

By:       /s/ Jeffrey Devlin                                              

Name:  Jeffrey Devlin

Title:    Director and Chief Financial Officer

 

15f8k051514ex10i_excelcorp.htm

 

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) with an effective date of May 13, 2014 (the “Effective Date”) and dated May 12, 2014 (the “Execution Date”), is by and between Excel Corporation., a Delaware corporation (together with its subsidiaries, the “Company”), and Thomas A. Hyde, Jr., an individual residing in Fort Worth, Texas (the “Employee”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Employee desire for Employee to serve the Company as its President and Chief Executive Officer; and

 

WHEREAS, the parties desire to provide that the Employee be employed by the Company under the terms of this Agreement.

 

NOW THEREFORE in consideration of the mutual benefits to be derived from this Agreement, the Company and the Employee hereby agree as follows:

 

	
1.

	
Term of Employment; Office and Duties.

 

(a)           Commencing on the Effective Date of this Agreement and for an initial three (3) year term, the Company shall employ the Employee as a senior executive of the Company with the title of President and Chief Executive Officer, with the duties and responsibilities prescribed for such offices in the Bylaws of the Company and such additional duties and responsibilities consistent with such positions as may from time to time be assigned to the Employee by the Board of Directors.  Employee agrees to perform such duties and discharge such responsibilities in accordance with the terms of this Agreement. This Agreement shall automatically renew for  successive additional one (1) year terms, unless either the Company or the Employee (collectively the “Parties” or individually the “Party”) gives the other Party written advance notice of an intent not to renew the Agreement at least ninety  (90) days prior to its expiration.

 

(b)           The Employee shall devote substantially all of his working time to the business and affairs of the Company other than during vacations of four weeks per year and periods of illness or incapacity; provided, however, that nothing in this Agreement shall preclude the Employee from devoting time required:  (i) for serving as a director or officer of any organization or entity that does not compete with the Company or any other businesses in which the Company is directly involved or becomes involved as a function of Employee’s duties; (ii) delivering lectures or fulfilling speaking engagements; or (iii) engaging in charitable and community activities, including sitting on any Boards of Directors and/or committees of such organizations related to such activities; provided, however, that such activities do not interfere with the performance of his duties hereunder.

 

	
2.

	
Compensation and Benefits.

 

For all services rendered by the Employee in any capacity during the period of Employee’s employment by the Company, including without limitation, services as an executive officer or member of any committee of the Board of Directors or any subsidiary, affiliate or division thereof, from and after the Effective Date the Employee shall be compensated as follows:

 

  

Page 1 of 11

  

 

(a)           Base Salary.  The Company shall pay the Employee a fixed salary (“Base Salary”) at a rate of Three Hundred Fifty Thousand Dollars ($350,000.00) per year. The Board of Directors shall review the Employee’s Base Salary annually with a view to increasing such Base Salary if, in the judgment of the Board of Directors, the earnings of the Company or the services of the Employee merit such an increase.  Base Salary will be payable in accordance with the customary payroll practices of the Company.

 

(b)           Annual Bonus.  During each year that this Agreement is in effect, other than fiscal year 2014, Employee will be entitled to receive an annual bonus (the “Annual Bonus”) equal to a minimum of 100% of the Employee’s Base Salary, provided that the performance criteria established and mutually agreed upon by the Company’s Board of Directors (or the compensation committee thereof) and the Employee has been achieved. The Annual Bonus shall be payable each year in a cash lump sum payment no later than sixty (60) days after the end of the Company’s most recently completed fiscal year. For the 2014 fiscal year, the Annual Bonus shall be $200,000, subject to adjustment based upon the reasonable discretion of the board of directors of the Company or the compensation committee thereof.

 

(c)           Stock Grants, Fringe Benefits and Miscellaneous Employment Matters.

 

(i)           Except as otherwise provided herein, the Employee shall be entitled to a grant of common stock (the “Stock Grant”) on the Effective Date equal to 2,732,804 or three percent (3%) of the Company’s outstanding fully diluted Common Stock, par value $.0001 per share (the “Common Stock”), subject to adjustment during the first ninety (90) days after the Effective Date for any further issuances of common stock, options and/or warrants that were granted and/or approved prior to the Effective Date. One third (910,934shares) shall vest immediately and an additional one-third (910,935 shares) shall vest on the first and second anniversary of the Effective Date. In the event that Employee’s employment is terminated (i) by the Company without Cause or (ii) by the Employee for Good Reason, all unvested portions of the Employment Options shall vest immediately upon termination.

 

(ii)           The Employee shall be entitled to participate in such employee benefit plans or programs, including, without limitation, a Section 401(k) retirement plan, of the Company established and amended from time to time by the Board of Directors, if any, to the extent that his position, tenure, salary, age, health and other qualifications make him eligible to participate, subject to the terms and provisions of such plans.  Such additional benefits shall include, but not be limited to: paid sick leave, individual and family health insurance and paid personal days, all in accordance with the policies of the Company.

 

(iii)           Reserved.

 

(d)           Withholding and Employment Tax.  The Company will be entitled to deduct or withhold from any amounts owing to Employee any federal, state, local or foreign withholding taxes, excise tax, or employment taxes imposed with respect to Employee’s compensation or other payments from the Company or Employee’s ownership interest in the Company (including, without limitation, wages, bonuses, dividends, the receipt or exercise of equity options and/or the receipt or vesting of restricted equity).

 

(e)           Reserved.

 

  

Page 2 of 11

  

 

(f)           Death.  In the event of Employee’s death, the Employee’s family shall continue to be covered by all of the Company’s medical, health and dental plans as in effect at such time, at the Company’s expense for at least six (6) months following the Employee’s death in accordance with the terms of such plans.  In the event such coverage would violate applicable law, Company shall take such actions as it deems appropriate in good faith to provide the benefits described in the preceding sentence.

 

(g)           Vacation.  Employee shall receive four (4) weeks of paid vacation annually, administered in accordance with the Company’s existing vacation policy.  Any existing accrued, unused vacation shall be paid to Employee at the time of employment termination, no matter the reason for such termination.

 

	
3.

	
Business Expenses.

 

The Company shall pay or reimburse all reasonable travel and entertainment expenses incurred by the Employee in connection with the performance of his duties under this Agreement, including reimbursement for attending out-of-town meetings of the Board of Directors in accordance with such procedures as the Company may from time to time establish for senior officers and as required to preserve any deductions for federal income taxation purposes to which the Company may be entitled and subject to the Company’s normal requirements with respect to reporting and documentation of such expenses. Notwithstanding the foregoing, all expenses must be promptly submitted for reimbursement by the Employee.  In no event shall any reimbursement be paid by the Company after the end of the year following the year in which the expense is incurred by the Employee.

 

	
4.

	
Termination of Employment.

 

Notwithstanding any other provision of this Agreement, Employee’s employment with the Company may be terminated upon written notice to the other Party as follows:

 

(a)           By the Company, in the event of the Employee’s death or Disability (as hereinafter defined) or for Cause (as hereinafter defined).  For purposes of this Agreement, “Cause” shall mean either: (i) the conviction of Employee of a crime involving an act or acts of dishonesty, fraud or theft by the Employee, which act or acts constitute a felony; (ii) Employee having committed acts or omissions constituting gross negligence or willful misconduct with respect to the Company; (iii) Employee having committed acts or omissions constituting a material breach of Employee’s duty of loyalty or fiduciary duty to the Company or any material act of dishonesty or fraud with respect to the Company; or (iv) Employee having committed acts or omissions constituting a material breach of this Agreement which are not cured in a reasonable time, which time shall be thirty (30) days from receipt of written notice from the Company specifying such material breach.  A determination that Cause exists as defined in clauses (ii), (iii) or (iv)(as to this Agreement) of the preceding sentence shall be made by at least a majority of the members of the Board of Directors.  For purposes of this Agreement, “Disability” shall mean Employee is, by reason of any medically determinable physical or mental impairment that is expected to result in death or can be expected to last for a continuous period of not less than three (3) months, receiving income replacement benefits for a period of not less than three (3) continuous months under an accident and health plan covering employees of the Company, or is determined to be totally disabled by the U.S. Social Security Administration.  The Company shall by written notice to the Employee specify the event relied upon for termination pursuant to this Section 4(a), and Employee’s employment hereunder shall be deemed terminated as of the date of such notice.  In the event of any termination under Section 4(a), 4(b), 4(c) or 4(d), the Company shall immediately pay all amounts then due to the Employee under Sections 2(a), 2(b) and 2(g) of this Agreement for any portion of the payroll period worked and/or any amounts earned but for which payment had not yet been made up to the date of termination, any unreimbursed business expenses and any amounts to which Employee is entitled under the Company’s benefit plans in accordance with their terms, and, if such termination was for Cause, the Company shall have no further obligations to Employee under this Agreement.  In the event of a termination due to Employee’s Disability or death, the Company shall also comply with its obligations under Section 2(e) and 2(f), as applicable.  The Company and Employee expressly agree that, to the extent Employee’s employment terminates because of death, Employee’s heirs and estate are third party beneficiaries of this Section 4(a).

 

  

Page 3 of 11

  

 

(b)           By the Company, in the absence of Cause, for any reason and in its sole and absolute discretion, provided that in such event the Company shall, as liquidated damages or severance pay, or both, shall pay Employee a lump sum payment in an amount equal to the Base Salary at the rate equal to the rate in effect immediately prior to such termination (the “Termination Payment”).

 

(c)           By the Employee for “Good Reason,” which shall be deemed to exist: (i) if the Company’s Board of Directors fails to elect or reelect the Employee to, or removes the Employee from, any of the office(s) referred to in Section 1(a) absent “Cause” as defined elsewhere in this Agreement; (ii) if the scope of Employee’s duties, responsibilities, authority or position is significantly reduced (but not excluding changes resulting from a sale of the Company, whether by merger, tender offer or otherwise), provided that Employee shall act via written notice of his belief that such event has occurred within thirty (30) days of any such diminution in the scope of his duties, responsibilities, authority or position;  (iii) if the Company shall have continued to fail to comply with any material provision of this Agreement after a 30-day period to cure (if such failure is curable) following written notice to the Company of such non-compliance; (iv) the failure of the Company to continue any compensation and/or benefit plan in which the Employee participates as of the Effective Date that is material to the Employee’s total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan to which the Employee has agreed in writing; (v) without Employee’s written consent, relocation of Employee’s office to an area outside of a the Dallas/Fort Worth Metroplex; or  (vi) upon the voluntary or involuntary bankruptcy of the Company and provided that (A) the Employee provides written notice to the Company of the facts giving rise to “Good Reason” within sixty (60) days of the initial existence of the event or events, and (B) the Company is provided not less than thirty (30) days to cure, if curable, and fails so to cure, and (C) the Employee actually terminates employment within 90 days from the initial existence of the cause of Good Reason.

 

Notwithstanding the foregoing, it shall not be deemed "Good Reason" if Employee terminates this Agreement during the first year of the term if the Company fails to pay Employee's Base Salary because of lack of sufficient funds unless such failure shall continue for six (6) consecutive pay periods. In the event of any termination under Section 4(c), the Company shall, as liquidated damages or severance pay, or both, pay the Termination Payment to Employee. Such Termination Payment shall be made on the same basis and at the same times as described in Section 4(a) and 4(b).

 

  

Page 4 of 11

  

 

(d)           By the Employee, for any reason, during a period of six (6) months following a “Change in Control”, which shall mean the occurrence of any of the following circumstances after the date hereof: (i) any “person” (as such term is used in Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (“Exchange Act”)), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation or other entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, shall have become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding voting securities; (ii) the Company is a party to a merger, consolidation, share exchange, sale of assets or other reorganization, or a proxy contest, as a consequence of which members of the Company’s Board of Directors (“Board”) in office immediately prior to such transaction or event constitute less than a majority of the Board thereafter.

 

(e)           Reserved.

 

(f)           Reserved.

 

	
5.

	
Non-Competition.

 

During the period of Employee’s employment hereunder and for the one (1) year thereafter (“Non-Competition Period”), the Employee shall not, within any county in which the Company or any subsidiary of the Company provides services, directly or indirectly own any interest in, manage, control, participate in, consult with, render services for, or in any manner engage in any business substantially similar to the Company’s current businesses.  Investments in less than five percent (5%) of the outstanding securities of any class of a corporation subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended, shall not be prohibited by this Section 5.

 

	
6.

	
Inventions and Confidential Information.

 

The parties hereto recognize that a major need of the Company is to preserve its specialized knowledge, trade secrets, and confidential information.  The strength and good will of the Company is derived from the specialized knowledge, trade secrets, and confidential information generated from experience with the activities undertaken by the Company and its subsidiaries.  The disclosure of this information and knowledge to competitors would be beneficial to them and detrimental to the Company, as would the disclosure of information about the marketing practices, pricing practices, costs, profit margins, design specifications, analytical techniques, and similar items of the Company and its subsidiaries.  The Employee acknowledges that the proprietary information, observations and data obtained by him while employed by the Company concerning the business or affairs of the Company are the property of the Company.  By reason of his being a senior executive of the Company, the Employee has or will have access to, and has obtained or will obtain, specialized knowledge, trade secrets and confidential information about the Company’s operations and the operations of its subsidiaries, which operations extend throughout the United States.  Therefore, subject to the provisions of Section 14 hereof, the Employee hereby agrees as follows, recognizing that the Company is relying on these agreements in entering into this Agreement:

 

  

Page 5 of 11

  

 

(i)           During the period of Employee’s employment with the Company and for an indefinite period thereafter, the Employee will not use, disclose to others, or publish or otherwise make available to any other party any inventions or any confidential business information about the affairs of the Company, including but not limited to confidential information concerning the Company’s products, methods, engineering designs and standards, analytical techniques, technical information, customer information, employee information, and other confidential information acquired by him in the course of his past or future services for the Company.  Employee agrees to hold and keep as confidential the Company’s books, papers, letters, formulas, memoranda, notes, plans, records, reports, computer tapes, printouts, software and other documents, and all copies thereof and therefrom, in any way relating to the Company’s business and affairs, whether made by him or otherwise coming into his possession, and on termination of his employment, or on demand of the Company, at any time, to deliver the same to the Company within twenty four (24) hours of such termination or demand.  However, nothing in this Agreement prohibits the Employee from using such confidential information or disclosing such information to those with a need to know such information to perform his job duties for the Company; from disclosing such confidential information as required by law or subpoena; or from testifying truthfully in any proceeding.  Additionally, confidential information shall not include information (a) that is or shall become generally available to the public other than as a result of the Employee’s unauthorized disclosure, (b) that was or becomes available to Employee on a non-confidential basis from a source other than the Company or any subsidiaries of the Company, or (c) that was developed by or for Employee independently of, and without the use of, any confidential information.

 

(ii)           During the period of Employee’s employment with the Company and for the one (1) year thereafter (“Non-Solicitation Period”) (a) the Employee will not directly or indirectly through another entity induce or otherwise attempt to influence any employee of the Company to leave the Company’s employ and (b) the Employee will not directly or indirectly hire or cause to be hired or induce a third party to hire, any such employee (unless the Board of Directors shall have authorized such employment and the Company shall have consented thereto in writing) or in any way interfere with the relationship between the Company and any employee thereof and (c) induce or attempt to induce any customer, supplier, licensee, licensor or other business relation of the Company to cease doing business, or reduce the amount of business done, with the Company or in any way interfere with the relationship between any such customer, supplier, licensee or business relation of the Company.

 

	
7.

	
Consolidation; Merger; Sale of Assets; Change of Control.

 

Nothing in this Agreement shall preclude the Company from combining, consolidating or merging with or into, transferring all or substantially all of its assets to, or entering into a partnership or joint venture with, another corporation or other entity, or effecting any other kind of corporate combination provided that the corporation resulting from or surviving such combination, consolidation or merger, or to which such assets are transferred, or such partnership or joint venture, assumes this Agreement and all obligations and undertakings of the Company hereunder. Upon such a consolidation, merger, transfer of assets or formation of such partnership or joint venture, this Agreement shall inure to the benefit of, be assumed by, and be binding upon such resulting or surviving transferee corporation or such partnership or joint venture, and the term “Company,” as used in this Agreement, shall mean such corporation, partnership or joint venture or other entity, and this Agreement shall continue in full force and effect in accordance with its terms and shall entitle the Employee and his heirs, beneficiaries and representatives to exactly the same compensation, benefits, payments and other rights as would have been their entitlement had such combination, consolidation, merger, transfer of assets or formation of such partnership or joint venture not occurred.

 

  

Page 6 of 11

  

 

	
8.

	
Survival of Obligations.

 

Sections 2(c)(i), 2(f), 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15 and 17 shall survive the termination for any reason of this Agreement (whether such termination is by the Company, by the Employee, upon the expiration of this Agreement or otherwise).

 

	
9.

	
Employee’s Representations.

 

The Employee hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by the Employee do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Employee is a party or by which he is bound, (ii) the Employee is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of the Employee, enforceable in accordance with its terms.  The Employee hereby acknowledges and represents that he has consulted with legal counsel regarding his rights and obligations under this Agreement and that he fully understands the terms and conditions contained herein.

 

	
10.

	
Company’s Representations.

 

The Company hereby represents and warrants to the Employee that (i) the execution, delivery and performance of this Agreement by the Company do not and shall not materially conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Company is a party or by which it is bound and (ii) upon the execution and delivery of this Agreement by the Employee, this Agreement shall be the valid and binding obligation of the Company, enforceable in accordance with its terms.

 

	
11.

	
Enforcement.

 

Because the Employee’s services are unique and because the Employee has access to confidential information concerning the Company, the parties hereto agree that money damages would not be an adequate remedy for any breach of this Agreement.  Therefore, in the event of a breach or threatened breach of this Agreement, the Company may, in addition to other rights and remedies existing in its favor, apply to any court of competent jurisdiction in Kings County, New York for injunctive relief in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security).

 

  

Page 7 of 11

  

 

	
12.

	
Severability.

 

In case any one or more of the provisions or part of a provision contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect in any jurisdiction, such invalidity, illegality or unenforceability shall be deemed not to affect any other jurisdiction or any other provision or part of a provision of this Agreement, nor shall such invalidity, illegality or unenforceability affect the validity, legality or enforceability of this Agreement or any provision or provisions hereof in any other jurisdiction; and this Agreement shall be reformed and construed in such jurisdiction as if such provision or part of a provision held to be invalid or illegal or unenforceable had never been contained herein and such provision or part reformed so that it would be valid, legal and enforceable in such jurisdiction to the maximum extent possible.  In furtherance and not in limitation of the foregoing, the Company and the Employee each intend that the covenants contained in Sections 5 and 6 shall be deemed to be a series of separate covenants, one for each county of the State of Texas and one for each and every other applicable county.  If, in any judicial proceeding, a court shall refuse to enforce any of such separate covenants, then such unenforceable covenants shall be deemed eliminated from the provisions hereof for the purpose of such proceedings to the extent necessary to permit the remaining separate covenants to be enforced in such proceedings.  If, in any judicial proceeding, a court shall refuse to enforce any one or more of such separate covenants because the total time, scope or area thereof is deemed to be excessive or unreasonable, then it is the intent of the parties hereto that such covenants, which would otherwise be unenforceable due to such excessive or unreasonable period of time, scope or area, be enforced for such lesser period of time, scope or area as shall be deemed reasonable and not excessive by such court.

 

	
13.

	
Entire Agreement; Amendment.

 

Except as otherwise set forth in this Agreement, this Agreement contains the entire agreement between the Company and the Employee with respect to the subject matter hereof and thereof.  This Agreement may not be amended, waived, changed, modified or discharged except by an instrument in writing executed by or on behalf of the party against whom enforcement of any amendment, waiver, change, modification or discharge is sought.  No course of conduct or dealing shall be construed to modify, amend or otherwise affect any of the provisions hereof.

 

	
14.

	
Notices.

 

All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if physically delivered, delivered by express mail or other expedited service or upon receipt if mailed, postage prepaid, via registered mail, return receipt requested, addressed as follows:

                                                    

	(a)           To the Company:  	(b)           To the Employee:
	 	 
	
Excel Corporation

595 Madison Avenue

Suite 1101

New York, NY 10022

Attn: Ruby Azrak

	
Thomas A. “Kip” Hyde, Jr.

4455 Camp Bowie Avenue

Suite 11418

Fort Worth, TX 76107

	 	 
	 	 
	              and to: 	and to:

 

 

and/or to such other persons and addresses as any party shall have specified in writing to the other.

 

	
15.

	
Assignability.

 

This Agreement shall be assignable by the Company but not the Employee, and shall be binding upon, and shall inure to the benefit of, the heirs, executors, administrators, legal representatives, successors and assigns of the parties.  In the event that all or substantially all of the business of the Company is sold or transferred, then this Agreement shall be binding on the transferee of the business of the Company whether or not this Agreement is expressly assigned to the transferee.  This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

  

Page 8 of 11

  

 

	
16.

	
Governing Law.

 

This agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to any conflict of laws principles to the contrary and any dispute shall be submitted to binding arbitration, before a sole arbitrator, with such arbitration to be conducted in the State of New York, County of Kings and shall be conducted under the rules (but not the auspices) of the Commercial Section of the Arbitration Association of America.  The parties shall select the arbitrator from a list of ten arbitrators who work or live within twenty (20) miles of the Kings County courthouse, by alternatively striking one name from the list until only one remains.  The parties shall each advance one half of the estimated fees to the arbitrator in advance of the commencement of the arbitration, and the prevailing party in any arbitration shall recover the costs of the arbitration (including the reasonable attorneys’ fees).  Each party irrevocably consents to the exclusive venue and jurisdiction of the Courts of the State of New York, County of Kings, for any action to confirm an arbitration award, or to seek injunctive relief to prevent any then-ongoing violations of the Confidentiality, Noncompetition or Non-solicitation obligations of the parties hereunder (which are the only issues that may be brought directly to Court, as any other claims are fully compensable by an award of monetary damages).  The commencement of an action seeking an injunction shall not be deemed or construed to operate as a waiver of related or unrelated claims for monetary damages between the parties or as a bar to the commencement of an arbitration (and subsequent action to confirm, vacate or modify the arbitration award) relating to monetary damages arising from any related or unrelated claims, including those claims for monetary damages arising from those same violations against which injunctive relief was sought. 

 

	
17.

	
Waiver and Further Agreement.

 

Any waiver of any breach of any terms or conditions of this Agreement shall not operate as a waiver of any other breach of such terms or conditions or any other term or condition, nor shall any failure to enforce any provision hereof operate as a waiver of such provision or of any other provision hereof.  Each of the parties hereto agrees to execute all such further instruments and documents and to take all such further action as the other party may reasonably require in order to effectuate the terms and purposes of this Agreement.

 

	
18.

	
Headings of No Effect.

 

The paragraph headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

  

Page 9 of 11

  

 

	
19.

	
Reserved.

 

	
20.

	
280G

 

Notwithstanding anything contained in this Agreement to the contrary to the extent that any of the payments and benefits provided for under this Agreement together with any payments or benefits under any other agreement or arrangement between the Company or any of their Subsidiaries and Employee (collectively, the “Payments”) would constitute a “parachute payment” within the meaning of Section 280G of the Code, Employee shall receive total payments equal to the greater, after the application of the excise tax imposed pursuant to Section 4999 of the Code, of the Payments provided under this Agreement or: the amount of such Payments reduced to the greatest amount that would result in no portion of the Payments being subject to such excise tax.

 

  

Page 10 of 11

  

 

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

 

 

	
 

	
COMPANY:

 

	
 

	
EXCEL CORPORATION

 

	
  

	
By:

	
__________/s/_______________________

 

	
  

	
Ruben Azrak

	
  

	
Chief Executive Officer

 

 

	
 

	
EMPLOYEE:

 

	
  

	
By:  ___________/s/______________________

	
  

	
Thomas A. Hyde, Jr.

 

 

 

Page 11 of 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]