Document:

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This
EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”)
is made and entered into as of this 10th day of
September, 2010, by and between Solera National Bank, a national banking
association (“Bank”), Solera National Bancorp, Inc., the Bank Holding
Company, (“Company or Bank”) and Robert J. Fenton, an individual resident of
the State of Colorado (“Executive”).

 

WHEREAS, the Executive has considerable experience,
expertise and training in management related to banking and services offered by
the Bank;

 

WHEREAS, the Bank desires for the Executive to be employed
as the Chief Financial Officer and Chief Operating Officer of the Bank, and the
Chief Financial Officer of Solera National Bancorp, Inc. and Executive
desires to accept employment, subject to and on the terms and conditions set
forth in this Agreement; and

 

WHEREAS, both the Bank and the Executive have read and
understood the terms and provisions set forth in this Agreement and have been
afforded a reasonable opportunity to review this Agreement with their
respective legal counsel.

 

NOW, THEREFORE, in consideration of the mutual promises and
covenants set forth in this Agreement, the Executive and the Bank agree as
follows:

 

A.  DURATION

 

1.             This
Agreement shall become effective as of September 10, 2010 (the “Effective
Date”), and subject to Paragraph 2 below, will expire and terminate by its own
terms one year after the Effective Date, unless earlier terminated as provided
herein.

 

2.             Both
the Bank and the Executive acknowledge and agree that the parties may agree to
continue the employment relationship on the same terms and conditions as set
forth herein.  Following the initial one (1) year
term, unless either party gives written notice ninety (90) days prior to the end
of such initial one (1) year term, this Agreement shall automatically
renew annually for an additional one (1) year term unless otherwise
terminated as set forth herein.

 

B.  COMPENSATION

 

3.             All
payments of salary and other compensation to the Executive shall be payable in
accordance with the Bank’s ordinary payroll and other policies and procedures.

 

a.             The Bank agrees to pay the Executive a base salary of
$175,000 annually, from September 10, 2010 through September 30,
2010.  Effective October 1, 2010 and
during the term of this Agreement, the Bank agrees to pay the Executive a base
salary of $165,000 annually, appropriately prorated for partial months at the
commencement and end of the term of this Agreement.  Additionally, the Bank may pay the Executive
a bonus based upon asset growth, profitability or other performance
measurements deemed appropriate by the President and Chief Executive Officer or
a delegated committee thereof of the Company or the Bank.

 

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b.             The Bank shall have the right to deduct from any payment
of compensation to the Executive hereunder any federal, state or local taxes
required by law to be withheld with respect to such payments and any other
amounts specifically authorized to be withheld or deducted by the Executive.

 

4.             The
Bank shall reimburse the Executive for all reasonable expenses, including, but
not limited to, travel expenses, lodging expenses, and meals and entertainment
expenses, that the Executive may incur in the performance of his duties and
obligations under this Agreement; provided, however, that the Executive shall
be required to submit receipts or
other acceptable documentation to a person designated by the President and
Chief Executive Officer to verify such expenses prior to any reimbursements in
accordance with the Bank’s expense policy.

 

5.             If,
during the term of this Agreement, the Bank adopts a plan providing life
insurance benefits to other Bank employees, the Executive shall be entitled to
participate in the Bank’s life insurance benefit plan to the full extent that
it is available to other Bank employees.

 

6.             The
President and Chief Executive Officer, in consultation with the Board of
Directors or a designated committee thereof of the Company or the Bank, shall
review the amount of the Executive’s compensation, including his base salary,
not less than annually and shall consider increases to such base salary as a
result of such review.  Increases, if
any, would be designed to provide reasonable base salary adjustments, all in
the discretion of the President and Chief Executive Officer, in consultation
with the Board of Directors or a designated committee thereof of the Company or
the Bank, consistent with safe and sound banking practices; provided however that
the Executive’s base salary and bonuses shall not be less than the amounts set
forth in Paragraph 3 at any time during the term of this Agreement;
provided, however, in the event that the Bank’s performance (i.e. as
demonstrated by asset growth, profitability or other measure of performance as
set forth above) does not support the continued payments of the amounts set
forth in Paragraph 3 then the President and Chief Executive Officer, in
consultation with the Board of Directors or a designated committee thereof of
the Company or the Bank, shall have the discretion to reduce those amounts in
order to strengthen such performance.

 

7.             Executive
shall be entitled to receive employee and dependent health insurance, dental
insurance, paid sick leave and four (4) weeks of paid vacation per year,
and any additional benefits provided to all Bank employees.  The Bank also shall provide the Executive
with term life insurance coverage at the Bank’s expense in an initial amount of
2.00 times the Executive’s annual base salary, and having a term not less than
one year, which life insurance benefit will be provided only for so long as the
Executive is employed by the Bank.  If,
during the term of this Agreement, the Bank adopts a plan providing life
insurance benefits to other Bank employees and the maximum coverage under such
plan exceeds the maximum permissible coverage provided by this Paragraph, then
notwithstanding the provisions of this Paragraph, the Executive shall be
entitled to participate in the Bank’s life insurance benefit plan to the full
extent that it is available to other Bank employees.  All employee benefits provided to the
Executive by the Bank incident to the Executive’s employment shall be governed
by the applicable plan documents, summary plan descriptions or employment
policies, and may be modified, suspended or revoked at any time, in accordance
with the terms and provisions of the applicable documents.

 

8.             The
parties hereto acknowledge that the compensation set forth herein and the other
covenants and agreements of the Bank contained herein are fair and adequate
compensation for the Executive’s services and for the covenants of the
Executive as set forth herein.

 

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B.  RESPONSIBILITIES

 

9.             The
Executive shall be employed as the Chief Financial Officer and Chief Operating
Officer of the Bank and the Chief Financial Officer of the Company and shall
faithfully devote best efforts and primary focus to the position(s) with
the Bank and the Company.

 

10.           The
Executive acknowledges and agrees that the duties and responsibilities of the
Executive required by the position are wholly within the discretion of the
President and Chief Executive Officer, and may be modified, or new duties and
responsibilities imposed by the President and Chief Executive Officer, at any
time, without the approval or consent of the Executive.  However, these new duties and
responsibilities may not constitute immoral or unlawful acts.  In addition, the new duties and
responsibilities must be consistent with the Executive’s position in a
financial institution.

 

11.           The
Executive acknowledges and agrees that, during the term of this Agreement, he
has a fiduciary duty of loyalty to each of the Bank and the Company, and that
he will not engage in any activity during the term of this Agreement, which
will or could, in any significant way, harm the business, business interests,
or reputation of the Bank, its Board of Directors or the President and Chief
Executive Officer.

 

C.  NONINTERFERENCE, CONFIDENTIALITY AND
NON-COMPETITION

 

12.           The
Executive acknowledges that, as part of his employment with the Bank, he will
become familiar with the salary, pay scale, capabilities, experience and, skill
of the Bank’s employees.  The Executive
agrees to maintain the confidentiality of such information.  The Executive further covenants and agrees
that, for a period of one year subsequent to the termination of this Agreement,
whether such termination occurs at the insistence of the Bank or the Executive,
the Executive shall not recruit, hire, or attempt to recruit or hire, directly
or by assisting others, any employees of the Bank, nor shall the Executive
contact or communicate with any employees of the Bank for the purpose of
inducing such employees of the Bank to terminate their employment with the
Bank.  For purposes of this covenant, “employees
of the Bank” shall refer to employees who are still actively employed by or
were employed by the Bank within the prior year at the time of the attempted
recruiting or hiring.

 

13.           In
his position of employment, the Executive will be exposed to confidential
information and trade secrets (hereafter “Proprietary Information”) pertaining
to, or arising from, the business of the Bank and its affiliates (if any).  The Executive hereby agrees and acknowledges
that such Proprietary Information is unique and valuable to the Bank’s business
and that the Bank would suffer irreparable injury if this information were
publicly disclosed.  Therefore, the
Executive agrees to keep in strict secrecy and confidence, both during and
after the period of his employment, any and all Proprietary Information which
the Executive acquires, or to which the Executive has access, during employment
by the Bank, that has not been publicly disclosed by the Bank, until such time
as such Proprietary Information becomes generally known to the public other
than pursuant to a breach of this Paragraph 16 by the Executive.  The Proprietary Information covered by this
Agreement shall include, but shall not be limited to: (i) the identities
of the Bank’s existing and prospective customers or clients, including names,
addresses, credit status, and pricing levels; (ii) the buying and selling
habits and customs of the Bank’s existing and prospective customers or clients;
(iii) financial information about the Bank; (iv) product and systems
specifications, concepts for new or improved products and other product or
systems data; (v) the identities of, and special skills possessed by, the
Bank’s employees; (vi) the identities of and pricing information about the
Bank’s suppliers and vendors; (vii) training programs developed by the
Bank; (viii) pricing studies, information and analyses; (ix) current
and prospective products and inventories; (x) financial models, business
projections and market studies; (xi) the Bank’s financial results and
business conditions; (xii) business plans and strategies;
(xiii) special processes, procedures, and services 

 

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of
the Bank and its suppliers and vendors; and (xiv) computer programs and
software developed by the Bank or its consultants.  The provisions and agreements entered into
herein shall survive the term of the Executive’s employment to the extent
reasonably necessary to accomplish their purpose in protecting the interests of
the Bank in any Proprietary Information disclosed to, or learned by, the
Executive while employed.

 

14.           The
Executive shall not directly or indirectly engage in competition with the Bank
at any time during the existence of the employment relationship between the
Bank and the Executive, and the Executive will not on his own behalf, or as
another’s agent or employee, engage in any of the same or similar duties and/or
Bank-related responsibilities required by the Executive’s position with the
Bank, other than as an employee of the Bank pursuant to this Agreement or as
specifically approved by the President and Chief Executive Officer.  In addition, without the prior written
consent of the President and Chief Executive Officer, Executive shall not usurp
for himself any corporate opportunity available to the Bank.

 

15.           The
Executive expressly represents that he has no agreements with, or obligations
to, any party which conflict, or may conflict, with the interests of the Bank
or with the Executive’s duties as an employee of the Bank.

 

16.           The
Executive acknowledges that the special relationship of trust and confidence
between him, the Bank, and its clients and customers creates a high risk and
opportunity for the Executive to misappropriate the relationship and goodwill
existing between the Bank and its clients and customers.  The Executive further acknowledges and agrees
that it is fair and reasonable for the Bank to take steps to protect itself
from the risk of such misappropriation. 
The Executive further acknowledges that, at the outset of his employment
with the Bank and throughout his employment with the Bank, the Executive will
be provided with access to and informed of Proprietary Information, which will
enable him to benefit from the Bank’s goodwill and know-how.

 

17.           The
Executive acknowledges that it would be inevitable in the performance of his
duties as a director, officer, employee, investor, agent or consultant of any
person, association, entity, or company which competes with the Bank, or which
intends to or may compete with the Bank, to disclose and/or use Proprietary
Information, as well as to misappropriate the Bank’s goodwill and know-how, to
or for the benefit of such other person, association, entity, or company.  The Executive also acknowledges that, in
exchange for the Covenants set forth in this Agreement, he has received
substantial, valuable consideration, including: 
(i) confidential trade secret and proprietary information relating
to the identity and special needs of the Bank’s current and prospective
customers, the Bank’s current and prospective services, the Bank’s business
projections and market studies, the Bank’s business plans and strategies, the
Bank’s studies and information concerning special services unique to the Bank;
(ii) employment; and (iii) compensation and benefits as described in
this Agreement.  The Executive further
acknowledges and agrees that this consideration constitutes fair and adequate
consideration for the execution of the non-solicitation restriction set forth
herein.

 

18.           Executive
understands and agrees that during the continuation of this Agreement and for a
period of 120 days following the termination of this Agreement by either party,
for any reason (other than for termination of the Executive for circumstances
described in Paragraph 22(c) or (d), below), the Executive will not be or
become engaged in any way (directly or indirectly), as an individual
proprietor, beneficiary, trustee, owner, partner, stockholder, officer,
director, executive, investor, lender, sales representative, or in any other
capacity, whatsoever, in any activity or endeavor which competes or conflicts
with the business of the Bank or any of its subsidiaries, as such business has
been conducted during the Executive’s employment with the Bank, within 100
miles of any geographic area in which 

 

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Employer
conducts business upon the termination of Executive’s employment with the
Bank.  It is the parties’ desire that
these restrictions be enforced to the fullest extent allowed by law.

 

19.           The
Executive agrees that the restrictions set forth in Paragraph 18 above are
ancillary to an otherwise enforceable agreement, are supported by independent
valuable consideration, and that the limitations as to time, geographical area,
and scope of activity to be restrained by Paragraph 18 are reasonable and
acceptable, and do not impose any greater restraint than is reasonably
necessary to protect the goodwill and other business interests of the
Bank.  The Executive further agrees that
such restrictions do not create undue hardship for him or for the public.  The provisions in this Section C are not
intended to be construed as a general restraint from engaging in a lawful profession
or a general covenant against competition. 
Nothing herein will prohibit the Executive’s (i) beneficial
ownership of less than 5% of the publicly traded capital stock of a corporation
listed on a national securities exchange so long as this is not a controlling
interest, or (ii) ownership of mutual fund investments.  The Executive may not avoid the purpose and
intent of this paragraph by engaging in conduct within the geographically
limited area from a remote location through means such as telecommunications,
written correspondence, computer generated or assisted communications, or other
similar methods.  The Executive agrees
that if, at some later date, a court of competent jurisdiction determines that
the non-solicitation agreement set forth in this Section C does not meet
the criteria set forth by applicable law, then such agreement may be reformed
by the court and enforced to the maximum extent permitted under applicable
law.  The Executive understands that his
obligations under this Section C shall not be assignable by him.

 

20.           The
Executive acknowledges that the covenants set forth in this Section C are
a material inducement for the Bank to execute and deliver this Agreement and to
provide Executive the compensation and benefits and other consideration
provided hereunder.  The parties agree
that the existence of any claim or cause of action of Executive against the
Bank, whether predicated on this Agreement or otherwise, will not constitute a
defense to the enforcement by the Bank of such covenants. The covenants
contained in this Section C will not be affected by any breach of any
other provision hereof by any party hereto. 
In addition, Executive’s obligations under these provisions shall
survive the termination of this Agreement and Executive’s employment with the
Bank.  Executive’s obligations in this Section C
are in addition to, and not in limitation or preemption of, all other
obligations of confidentiality which he may have to Bank under general legal or
equitable principles, or other the Bank policies.

 

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D.  REMEDIES

 

21.           In
the event that the Executive violates any of the provisions set forth in this
Agreement relating to Section C, Executive acknowledges that the Bank
would suffer immediate and irreparable harm and would not have an adequate
remedy at law for money damages. 
Accordingly, Executive agrees that, without the necessity of proving
actual damages or posting bond or other security, the Bank shall be entitled to
temporary or permanent injunction or injunctions to prevent breaches of such
performance and to specific enforcement of such covenants in addition to any
other remedy to which the Bank may be entitled, at law or in equity.  In such a situation, the parties agree that
the Bank may pursue any remedy available, including declaratory relief,
concurrently or consecutively in any order as to any breach, violation, or
threatened breach or violation of any of the provisions set forth in this
Agreement relating to Section C, and the pursuit of any particular remedy
or remedies shall not be deemed an election of remedies or waiver of the right
to pursue any other remedy.  To the
extent that the provisions of this Paragraph 21 could be read to increase the
geographic, temporal or other scope of the restrictions set forth in this
Agreement relating to Section C, such reading is not intended by the
parties.

 

E.  TERMINATION

 

22.           This
Agreement shall be terminated by the Bank or the Executive as follows:

 

a.             Termination for Cause.  The Bank may terminate this Agreement at any
time for cause.  “Cause” as used in this
Agreement shall be defined as the occurrence of one of the following events:

 

(i)            The determination by the President and Chief Executive
Officer, in consultation with the Board of Directors or a designated committee
thereof of the Company or the Bank, in his reasonable discretion, that
Executive has violated any provision of this Agreement or is grossly negligent
in the performance of his duties hereunder, and has failed to cure such
violation or the effects of such gross negligence within thirty (30) business
days after written notice to the Executive by the Bank specifying in reasonable
detail the alleged violation;

 

(ii)           The determination by the President
and Chief Executive Officer, in consultation with the Board of Directors or a
designated committee thereof of the Company or the Bank, in his reasonable
discretion, that (a) Executive has failed to follow the policies adopted
by the Board of Directors, and has failed to cure such failure within thirty
(30) days after written notice to the Executive by the Bank specifying in
reasonable detail the alleged failure; or (b) Executive has engaged in
such actions or omissions that would constitute unsafe or unsound banking
practices;

 

(iii)          The Executive is convicted of a
misdemeanor involving moral turpitude or any felony;

 

(iv)          The determination by the President and
Chief Executive Officer, in consultation with the Board of Directors or a
designated committee thereof of the Company or the Bank, in his reasonable
discretion, that the Executive has engaged in gross misconduct in the course
and scope of his employment with the Bank including indecency, immorality,
insubordination, dishonesty, unlawful harassment, use of illegal drugs, or
fighting;

 

(v)           The determination by the President and Chief Executive
Officer, in consultation with the Board of Directors or a designated committee
thereof of the Company or the Bank, in his reasonable discretion, that the
Executive’s job performance is substantially

 

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unsatisfactory and that
Executive has failed to cure such performance within thirty (30) business days
after written notice to the Executive by the Bank specifying in reasonable
detail the nature of the unsatisfactory performance; or

 

(vi)          The Executive is prohibited from
engaging in the business of banking or from being an officer or director of a
public company by any governmental regulatory agency having jurisdiction over
the Bank.

 

In
the event of termination of this Agreement for Cause, the Bank shall have no
liability to the Executive for any additional payments of salary or any
benefits beyond the termination date, as except as otherwise required by law.  Any and all unvested stock or options to
acquire stock shall be terminated and cancelled as of the termination
date.  All vested options must be
exercised by the Executive within ninety (90) days of the termination date and
shall expire and be cancelled thereafter.

 

b.             Termination in the Best Interest of
the Bank.  The Bank may terminate this
Agreement at any time if, in the reasonable discretion of the President and
Chief Executive Officer, in consultation with the Board of Directors or a
designated committee thereof of the Company or the Bank, it is determined that
this Agreement or the Employment of the Executive may prevent or otherwise
encumber the Bank’s ability to enter into any agreement or transaction that is
in the best interest of the Bank.  In the
event of termination of this Agreement in the best interest of the Bank,
subject to Executive first executing the Separation Agreement that is attached
hereto as Exhibit A and that Separation Agreement becoming fully effective
pursuant to its terms, then Executive shall be entitled to receive a severance
payment in an amount equal to one hundred twenty (120) days of the Executive’s
then current base salary.

 

c.             Termination for No Reason.  The Bank may terminate this Agreement at any
time for any or no reason.  In the event
that this Agreement is terminated for “no reason” at any time, subject to
Executive first executing the Separation Agreement that is attached hereto as Exhibit A
and that Separation Agreement becoming fully effective pursuant to its terms,
then Executive shall be entitled to receive a severance payment in an amount
equal to the payment of the Executive’s then current base salary for the lesser
of the remaining term of this Agreement or six (6) months.  All options which have not vested as of the
termination date shall expire and the Executive shall have ninety (90) days to
exercise all vested options as of the termination date and all unexercised
vested options shall expire and be cancelled thereafter.

 

d.             Termination for Change of Control.
The Bank or the Executive may terminate this Agreement at any time for a Change
of Control. If, during the term of this Agreement, there is a “Change of
Control” (as herein after defined) and this Agreement is terminated by the Bank
within one (1) year thereafter, subject to Executive first executing the
Separation Agreement that is attached hereto as Exhibit A and that
Separation Agreement becoming fully effective pursuant to its terms, then
Executive shall be entitled to receive a severance payment in an amount equal
to 1.50 times the Executive’s then current annual base salary. All options
which have not vested as of the termination date shall automatically vest as of
the termination date. If, during the term of this Agreement, there is a “Change
of Control” (as herein after defined) and this agreement is terminated by the
Executive within one (1) year thereafter and the Executive can demonstrate
“Good Reason”, subject to Executive first executing the Separation Agreement
that is attached hereto as Exhibit A and that Separation Agreement
becoming fully effective pursuant to its terms, then Executive shall be
entitled to receive a severance payment in an amount equal to the payment of
1.50 times the Executive’s then current base salary. All options which have not
vested as of the termination date shall automatically vest as of the
termination date.   Executive shall have
ninety (90) days to exercise all vested options as of the termination date and
all unexercised vested options shall expire and be cancelled thereafter. A “Change
of Control” shall mean (i) a sale of substantially all of the assets of
the Bank to a third party, or (ii) a sale, or acquisition, by 

 

7

 

merger
or otherwise, of a controlling interest of the equity securities of the Bank or
the Company. “Good Reason” shall mean (i) the post Change of Control
management reduces the then current salary and benefits of the Executive and
other management personnel do not incur a similar reduction, (ii) the
duties of the Executive are substantially changed as set forth herein, or (iii) a
new employee is retained by management to perform substantially the same duties
as performed by the Executive.   In the
event that the Executive terminates this Agreement after a Change of Control
and does not show Good Reason, no severance will be paid and all options which
have not vested as of the termination date shall be cancelled.   Executive shall have ninety (90) days to
exercise all vested options as of the termination date and all unexercised vested
options shall expire and be cancelled thereafter.

 

e.
In the event the Company elects not to renew this Employment Agreement pursuant
to Section A.2 above, subject to Executive first executing the Separation
Agreement that is attached hereto as Exhibit A and that Separation
Agreement becoming fully effective pursuant to its terms, then Executive shall
be entitled to receive a severance payment in an amount equal to one hundred
twenty (120) days of the Executive’s then current base salary.

 

23.           If
Executive dies during the term of this Agreement and while in the employ of the
Bank, this Agreement will terminate automatically, without notice, on the date
of the Executive’s death and the Bank shall not have any further obligation to
Executive or his estate under this Agreement (other than death benefits payable
under any benefit plans to which Executive is a party), except that the Bank
shall pay Executive’s estate that portion of Executive’s base salary accrued
through the date on which Executive’s death occurred.  To the maximum extent, and for the term,
permitted by the health benefit provisions of the Consolidated Omnibus Budget
Reconciliation Act (COBRA) of 1986, if Executive dies during the term of this
Agreement and while in the employ of the Bank, the Bank shall provide, or
maintain, and pay for any required health insurance benefits, for Executive’s
spouse for six months.

 

24.           This
Agreement will terminate immediately, without notice, in the event the
Executive is prevented from performing his duties hereunder by reason of
becoming physically or mentally disabled. 
For purposes of this Agreement, the term “disabled” shall have the
meaning set forth in the Bank’s long-term disability plan or, if the Bank has
no long-term disability plan in effect at the time of the Executive’s
disability, then “disabled” shall mean that Executive has become physically or
mentally incapable (excluding infrequent and temporary absences due to ordinary
illness) of performing the essential functions of his duties under this
Agreement for a continuous period of three (3) months, as determined by
the President and Chief Executive Officer, in consultation with the Board of
Directors or a designated committee thereof of the Company or the Bank, upon
the advice of a qualified physician. During any period prior to termination
during which the Executive fails to perform his duties as a result of
incapacity due to physical or mental illness, the Executive shall continue to
receive his full salary at the rate then in effect for such period until his
employment terminates pursuant to this Paragraph 24, provided that payments so
made to the Executive during such period shall be reduced by the sum of the
amounts, if any, payable to the Executive under any disability benefit plans of
the Bank that were not previously applied to reduce such payment.

 

Executive
acknowledges that all memoranda, notes, records, reports, manuals, books,
papers, letters, client and customer lists, contracts, software programs,
information and records, drafts of instructions, guides and manuals, and other
documentation (whether in draft or final form), and other sales or financial
information and aids relating to the Bank’s business, and any and all other
documents containing Propriety Information furnished to the Executive by any
representative of the Bank or otherwise acquired or developed by the Executive
in connection with his duties under this Agreement (collectively, the “Recipient
Materials”) shall at all times be the property of the Bank.  Within three calendar days of the termination
of this Agreement, the Executive shall return to the Bank, all Recipient
Materials (including all Proprietary Information) that is in his possession,
custody or control.

 

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25.           The provisions of Paragraphs 12-24, 27, 34 and
36 shall survive the termination of this Agreement.

 

F.  SEVERABILITY

 

26.           If any term or other provision of this
Agreement is held to be illegal, invalid or unenforceable by any rule of
law or public policy:  (A) such term
or provision shall be fully severable and this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision were not a part
hereof; (B) the remaining provisions of this Agreement shall remain in
full force and effect and shall not be affected by such illegal, invalid or
unenforceable provision or by its severance from this Agreement; and (C) there
shall be added automatically as a part of this Agreement a provision as similar
in terms to such illegal, invalid or unenforceable provision as may be possible
and still be legal, valid and enforceable. 
If any provision of this Agreement is so broad as to be unenforceable,
the provision shall be interpreted to be only as broad as is enforceable.

 

G.  WAIVER

 

27.           The parties acknowledge and agree that the
failure of either party to enforce any provision of this Agreement shall not
constitute a waiver of that particular provision, or of any other provisions of
this Agreement.

 

H.  SUCCESSORS AND ASSIGNS

 

28.           The Executive acknowledges and agrees that
this Agreement may be assigned by the Bank to any successor-in-interest and
shall inure to the benefit of, and be fully enforceable by, any successor
and/or assignee; and this Agreement will be fully binding upon, and may be
enforced by the Executive against, any successor and/or assignee of the Bank.

 

29.           The Executive acknowledges and agrees that his
obligations, duties and responsibilities under this Agreement are personal and
shall not be assignable, and that this Agreement shall be enforceable by the
Executive only.  In the event of the
Executive’s death, this Agreement shall be enforceable by the Executive’s
estate, executors and/or legal representatives, only to the extent provided
herein.

 

I.  CHOICE OF LAW

 

30.           THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, AND ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, INTERPRETATION
AND PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY, THE LAWS OF THE STATE
OF COLORADO, WITHOUT GIVING EFFECT TO PROVISION THEREOF REGARDING CONFLICT OF
LAWS.  IT IS STIPULATED THAT COLORADO HAS
A COMPELLING STATE INTEREST IN THE SUBJECT MATTER OF THIS AGREEMENT, AND THAT
THE EXECUTIVE HAS OR WILL HAVE REGULAR CONTACT WITH THE STATE OF COLORADO IN
THE PERFORMANCE OF THIS AGREEMENT.

 

J.  MODIFICATION

 

31.           The parties acknowledge and agree that this
Agreement and the other agreements and plans referenced herein constitute the
complete and entire agreement between the parties; that each executed this
Agreement based upon the express terms and provisions set forth herein; that,
in accepting employment with the Bank, the Executive has not relied on any
representations, oral or written, which are 

 

9

 

not
set forth in this Agreement; that no previous agreement, either oral or
written, shall have any effect on the terms or provisions of this Agreement;
and that all previous agreements, either oral or written, are expressly
superseded and revoked by this Agreement. 
No waiver shall be deemed a continuing waiver or a waiver of any
subsequent breach or default, either of a similar or different nature, unless
expressly so stated in writing.

 

32.           Except as otherwise expressly provided in this
Agreement, no conditions, usage of trade, course of dealing or performance,
understanding or agreement purporting to modify, vary, explain or supplement
the terms or conditions of this Agreement unless hereafter made (i) in
writing, (ii) referencing an express provision in this Agreement, (iii) signed
by the party to be bound, and (iv) in the case of the Bank, approved by
the President and Chief Executive Officer.

 

K.  INDEMNIFICATION

 

33.           During the term of this Agreement, so long as
the Executive has demonstrated good judgment and diligence in performing his
duties, the Bank shall indemnify the Executive against all judgments,
penalties, fines, amounts paid in settlement and reasonable expenses
(including, but not limited to, attorneys’ fees) relating to his employment by
the Bank to the fullest extent permissible under the law, including, without
limitation, federal and/or state banking laws and regulations, the Colorado
Banking Code, as amended, the Colorado Corporations and Associations Act, as
amended, and the Bank’s Articles of Incorporation.  To the extent permitted by law, the Bank
shall purchase such indemnification insurance as the President and Chief
Executive Officer or Board of Directors may from time to time determine.

 

L.  ARBITRATION

 

34.           Any dispute, controversy, or claim arising out
of or relating to this Agreement or breach thereof, or arising out of or
relating in any way to the employment of the Executive or the termination
thereof, shall be submitted to arbitration before a private arbitrator in
Denver, Colorado, pursuant to the Colorado Uniform Arbitration Act, C.R.S.
§13-22-101, et seq.  Judgment upon the award rendered by the
arbitrator may be entered in any court of competent jurisdiction.  In reaching his or her decision, the
arbitrator shall have no authority to ignore, change, modify, add to or delete
from any provision of this Agreement, but instead is limited to interpreting
this Agreement.  Notwithstanding the
arbitration provisions set forth in this Agreement, the Executive and the Bank
acknowledge and agree that nothing in this Agreement shall be construed to
require the arbitration of any claim or controversy arising under the
NONINTERFERENCE, CONFIDENTIALITY AND NON-COMPETITION provisions of this
Agreement.  These provisions shall be
enforceable by any court of competent jurisdiction and shall not be subject to
this Paragraph of the Agreement.  The
Executive and the Bank further acknowledge and agree that nothing in this
Agreement shall be construed to prohibit Bank from applying to a Court of
competent jurisdiction for injunctive or equitable relief to protect
Proprietary Information, to preserve the status quo or to enforce the
NONINTERFERENCE, CONFIDENTIALITY AND NON-COMPETITION provisions of this
Agreement pending conclusion of the arbitration.  The Executive and the Bank further
acknowledge and agree that nothing in this Agreement shall be construed to
require arbitration of any claim for workers’ compensation or unemployment
compensation.

 

M.  LEGAL CONSULTATION

 

35.           Each party acknowledges that it has carefully read
this Agreement, that he, she or it has had an opportunity to consult with his,
her or its attorney concerning the meaning, import and legal significance of
this Agreement, that it understands the terms of the Agreement, that all
understandings and agreements between Executive and the Bank relating to the
subjects covered in this Agreement are 

 

10

 

contained
in it, and that it has entered into the Agreement voluntarily and not in
reliance on any promises or representations by the other than those contained
in this Agreement.

 

N.  MISCELLANEOUS

 

36.           The Executive shall be available, upon the
request of the Bank, to testify or otherwise assist in litigation, arbitration,
or other disputes involving the Bank, or any of the directors, officers,
employees, subsidiaries, or parent corporations of the Bank, during the term of
this Agreement and at any time following the termination of this Agreement,
with any fees and expenses related to the foregoing to be promptly paid by the
Bank.

 

37.           In the event either party institutes
arbitration or litigation to enforce or protect its rights under this
Agreement, the substantially prevailing party in such arbitration or litigation
shall be entitled, in addition to all other relief, to reasonable attorneys
fees, out-of-pocket costs, disbursements, and arbitrator’s fees relating to
such arbitration or litigation.

 

38.           This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original, but all
of which shall together constitute one and the same Agreement.

 

39.           The Bank shall have no obligation to set
aside, earmark or entrust any fund or money with which to pay its obligations
under this Agreement.  The Executive or
any successor-in-interest to the Executive shall be and remain simply a general
creditor of the Bank in the same manner as any other creditor having a general
unsecured claim.  For purposes of the
Code, the Bank intends this Agreement to be an unfunded, unsecured promise to
pay on the part of the Bank.  For
purposes of Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
the Bank intends that this Agreement not be subject to ERISA.  If it is deemed subject to ERISA, it is
intended to be an unfunded arrangement for the benefit of a select member of
management, who is a highly compensated employee of the Bank for the purpose of
qualifying this Agreement for the “top hat” plan exception under sections
201(2), 301(a)(3) and 401(a)(1) of ERISA.  At no time shall the Executive have or be
deemed to have any lien nor right, title or interest in or to any specific
investment or to any assets of the Bank. 
If the Bank elects to invest in a life insurance, disability or annuity
policy upon the life of the Executive, then the Executive shall assist the Bank
by freely submitting to a physical examination and supplying such additional
information necessary to obtain such insurance or annuities.

 

40.           When a reference is made in this Agreement to
a Paragraph or a Section, such references shall be to a Paragraph or a Section of
this Agreement unless otherwise indicated. 
The headings contained in this Agreement are for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.  Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation.” 
The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision in this Agreement. 
Each use herein of the masculine, neuter or feminine gender shall be
deemed to include the other genders. 
Each use herein of the plural shall include the singular and vice versa,
in each case as the context requires or as is otherwise appropriate.  The word “or” is used in the inclusive
sense.  Any agreement or instrument
defined or referred to herein or in any agreement or instrument that is
referred to herein means such agreement or instrument as from time to time
amended, modified or supplemented, including by waiver or consent.  References to a person are also to its
permitted successors or assigns.

 

41.           Executive represents that his or her service as
an employee of the Bank will not violate any agreement that:  (i) prohibits Executive from disclosing
any information acquired prior to becoming employed by the Bank; or (ii) prohibits
Executive from accepting employment with the Bank or that will 

 

11

 

interfere
with compliance with the terms of this Agreement.  Executive further represents that Executive
has not previously, and will not in the future, disclose to Bank any
proprietary information or trade secrets belonging to any previous
employer.  Executive acknowledges that
the Bank has instructed Executive not to disclose to it any proprietary
information or trade secrets belonging to any previous employer.

 

O.  NOTICES

 

42.           All notices and other communications required
or permitted to be given or delivered hereunder or by reason of the provisions
of this Agreement shall be in writing and shall be deemed to have been given
properly if (a) delivered personally, (b) delivered by a recognized
overnight courier service, (c) sent by United States mail, postage
prepaid, or (d) sent by facsimile transmission followed by a confirmation
copy delivered by recognized overnight courier service the next day.  Such notices, requests, consents and other
communications shall be sent to the respective parties as follows (or at such
other address for a party as shall be specified by like notice to the other
party):

 

If
to the Bank:

 

Solera
National Bank

319
S. Sheridan Blvd

Lakewood,
CO 80226

 

Attention:
President & CEO

 

If
to Executive:

 

Robert
J. Fenton

876
Wolverine Ct.

Castle
Rock, CO 80108

 

43.           Any notice or other communication given
pursuant to this Agreement shall be effective (i) in the case of personal
delivery, telex or facsimile transmission, when received; (ii) in the case
of mail, upon the earlier of actual receipt or five (5) business days
after deposit with the United States Postal Service, first class certified or
registered mail, postage prepaid, return receipt requested; and (iii) in
the case of a recognized overnight courier service, one (1) business day
after delivery to the courier service together with all appropriate fees or
charges and instructions for overnight delivery.

 

[signature page follows]

 

12

 

[signature page to Employment Agreement]

 

EXECUTED
AS OF THE DATE FIRST WRITTEN ABOVE IN DENVER, COLORADO.

 

	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Ruby Ebell

  	
   

  	
  /s/
  Robert J. Fenton

  
	
  WITNESS

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  Name:  Robert J. Fenton

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solera National Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Ruby Ebell

  	
   

  	
  By:
  

  	
  /s/
  Douglas Crichfield

  
	
  WITNESS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  Douglas
  Crichfield

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
  President &
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solera
  National Bancorp, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/
  Douglas Crichfield

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  Douglas
  Crichfield

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:
  

  	
  President &
  CEO

  

 

13

 

EXHIBIT A

(SEPARATION AGREEMENT)

 

14

 

SEPARATION
AGREEMENT

[form to be
completed at time of separation]

 

THIS
SEPARATION AGREEMENT is entered into by and between Solera
National Bancorp, Inc. and Solera National Bank (collectively,
the “Employer”) and                                             (“Employee”)
for good and valuable consideration, the sufficiency of which is hereby
acknowledged.

 

1.             Employee and Employer agree
that Employee’s termination of employment with Employer is effective as of [insert date] (the “Separation Date”).  Employer agrees to consult with Employee
regarding the wording of appropriate press releases and/or inter-company
announcements to be issued by Employer.

 

2.             Regardless of whether he
signs this Separation Agreement, Employee will be paid all compensation he has
earned through the Separation Date, Employer will reimburse Employee for
reasonable business expenses incurred through the Separation Date upon
submission by Employee of expense reports in accordance with company policy,
and Employee will have the right to elect to continue his health insurance
coverage pursuant to the federal law regarding continuation of insurance coverage,
known as COBRA.

 

3.             In exchange for Employee’s
agreement to this Separation Agreement, Employer agrees to provide Employee
with the following additional severance benefits:

 

(A)          severance pay in the
aggregate gross amount of $ [insert appropriate
amount per Employment Agreement], less applicable withholding taxes,
payable as follows: [insert appropriate
payment schedule]; and

 

(B)           provided Employee elects
continuation coverage of health insurance in accordance with COBRA, Employer
will pay the premiums for such coverage for six months from when Employee’s
coverage would otherwise end, or until such earlier date as Employee’s
eligibility for such coverage ends.

 

Employee
acknowledges that he would not be entitled to receive the severance benefits
described above if he did not agree to all of the terms of this Separation
Agreement.  Payment of the severance
benefits described above shall commence as soon as practicable after the
Effective Date of this Agreement, as described in paragraph 10 hereof.  Employee agrees to return to Employer on or
before the Effective Date any and all property and documents of Employer.  Employee agrees to cooperate with the Company
to resolve all other issues relating to Employee’s separation from employment.
Employee agrees that he is not entitled to any other compensation or benefits
except as expressly provided herein.

 

4.             Employee hereby releases
Employer and its parent, subsidiary, and sister companies, and their respective
officers, directors, agents, shareholders, employees, and benefit plans
(collectively “Released Persons”) of and from any and all past, present, or
future actions, causes of actions, claims, demands, damages, expenses, charges,
complaints, obligations and liability of any nature or kind whatsoever on
account of, or in any way growing out of, his employment with or separation
from employment with Employer, whether such liability or damages are accrued or
unaccrued, known or unknown at this time. 
This release includes, without limitation, any and all rights or claims
under any common law theory such as defamation, intentional infliction of
emotional distress, outrageous conduct, breach of contract, invasion of
privacy, wrongful discharge, breach of implied covenant, and any claim of
discrimination on the basis of sex, race, creed, religion, age, disability,
sexual orientation, or national origin under any municipal ordinance or under
any statute of the United States or Colorado, including

 

15

 

without
limitation, any claim under Title VII of the 1964 Civil Rights Act, The Civil
Rights Acts of 1866 and 1871, the Americans with Disabilities Act,  the Colorado Civil Rights Act (C.R.S.
Sections 24-34-301 et seq. and
24-34-401 et seq.), and the Age Discrimination in
Employment Act of 1967 as amended, which is codified beginning at 29 U.S.C. Section 621.

 

5.             The release in paragraph 4
does not include a release or waiver of the
following:

 

(A)          any rights of Employee which
are already vested as of the Separation Date to benefits under Employer’s 401(k) Plan;

 

(B)           any rights: (i) to
elect continuation coverage under Employer’s group health plan in accordance
with the terms of COBRA, or (ii) to otherwise maintain coverage under
Employer’s group health plan if the plan so provides at the time of Employee’s
separation from employment; and

 

(C)           any claims which Employee
may have under Colorado statutes for workers compensation benefits and/or
unemployment compensation benefits; and

 

(D)          any rights or claims arising
under the Age Discrimination in Employment Act after the date that Employee
signs this Separation Agreement.

 

6.             Employee agrees that he will
not file, cause to be filed, or prosecute any civil suit in any court for any
claims which are released in Paragraph 4. 
In the event that Employee breaches this paragraph, all Released Persons
shall be entitled to recover from Employee all reasonable attorney fees and
costs incurred as a result of such breach, provided, however, that Employee’s
obligation to pay attorney fees and costs shall apply to claims asserted under
the Age Discrimination in Employment Act or the Older Workers Benefit
Protection Act only as specifically authorized by federal law.

 

7.             Employee agrees and
covenants that at no time will he use, disclose, communicate, or transmit to
other persons any Confidential Information of Employer.  For purposes of this Agreement, “Confidential
Information” shall mean any information or material of a confidential nature or
proprietary to Employer which is not generally available to the public, to
which Employee obtained knowledge or access as a result of Employee’s
employment with Employer.  Confidential
Information includes all information designated as such by Employer, but the
absence of such a designation shall not prevent information from being
Confidential Information if it is not generally available to the public.
Employee agrees that the terms, amount, and fact of this Agreement are also
confidential information.  Employee
represents that he has not disclosed such confidential information to any other
person or entity, except to his attorneys, tax advisors, and spouse.  Employee agrees that hereafter he will not
disclose any such confidential information to any other person or entity,
except to his attorneys, tax advisors, spouse, or as required by law or court
order.   Any disclosure of such
confidential information by Employee’s attorneys, tax advisors, or spouse will
be deemed to be a disclosure by Employee.

 

8.             During any time period that
Employee is receiving severance payments from Employer as described in
paragraph 3 above: (i) he shall provide transitional assistance or
information as may be requested from time to time by Employer, provided that
Employee shall not be required to spend more than 20 hours per month providing
such assistance; and (ii) he shall not perform any services in any
capacity, directly or indirectly, as an officer, director, employee,
consultant, or otherwise on behalf of any person or entity engaged in
competition with Employer within 100 miles of any geographic area in which
Employer conducts business.

 

9.             This Separation Agreement
constitutes the entire agreement between Employee and Employer concerning his
employment with Employer and his separation from employment with

 

16

 

Employer
and supersedes all prior agreements relating thereto, and there are no other
promises, understandings, or agreements relating thereto except as may be
provided herein.   Both parties agree and
acknowledge that they have not relied upon any representation, whether written
or oral, of the other party in connection with entering into this Separation
Agreement.  Nothing in this Agreement
shall be construed as an admission of liability or wrongdoing by either
party.  The purpose of this Agreement is
solely to amicably resolve all issues relating to Employee’s employment and
separation from employment with Employer and to provide transitional assistance
to Employee.  No rules of
construction based upon which party drafted any portion of this Agreement shall
be applicable in the event of any dispute over its meaning or
interpretation.  This Agreement shall be
construed and enforced in accordance with the law of the State of Colorado.  If any provision of this Agreement is found
to be invalid or unenforceable by a court of competent jurisdiction, the
remaining terms of this Agreement will remain in full force and effect, and any
Court having jurisdiction shall modify any such invalid or unenforceable
provision to the extent necessary for it to be valid and enforceable.

 

10.          Employee
understands that this is an important legal document.  Employee is advised to consult with an
attorney before signing this Separation Agreement.  Employee has 21 days after receiving this
Separation Agreement to consider it, and if Employee chooses to agree to the
terms of this Separation Agreement, Employee understands that he must sign and
return this Separation Agreement to Employer within that 21-day period.  If Employee signs this Separation Agreement,
he will then have the right to revoke this Separation Agreement by delivering
written notice of revocation, but such notice must be received by Employer
within seven days after the date that Employee signed this Separation
Agreement.  If this Separation Agreement
is not signed and delivered within 21 days, or if it is revoked within the
seven day period, neither Employee nor Employer will have any rights or
obligations under this Separation Agreement. 
The Effective Date of this Separation Agreement is the eighth day after
Employee signs it, unless Employee revokes it as described above.

 

17

 

11.           It is expressly understood
that Employee has read and reviewed this Separation Agreement and every word of
it, that Employee has had an opportunity to discuss this Separation Agreement
with an attorney if he chose to do so, and that Employee understands this
Separation Agreement.  By signing below,
Employee represents that this Separation Agreement has been entered into
voluntarily and knowingly and is binding upon him, his heirs, and personal
representatives, and shall inure to the benefit of Employer, its successors and
assigns.

 

[signatures on following page]

 

18

 

Signature page to Separation Agreement

 

The
duly authorized parties have caused this Separation Agreement to be executed as
of the date first set forth above.

 

	
   

  	
   

  	
  Solera National Bancorp, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  [executive]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solera National Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE
  OF COLORADO

  	
   

  	
  )

  
	
   

  	
   

  	
  ) ss.

  
	
  COUNTY
  OF DENVER

  	
   

  	
  )

  

 

 

The
foregoing Separation Agreement was acknowledged before me this
           day of
                  ,
20    , by
                           .

 

WITNESS
my hand and official seal.

My
commission expires:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary
  Public

  
	
   

  	
   

  
	
  STATE
  OF COLORADO

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY
  OF DENVER

  	
  )

  

 

 

The
foregoing Separation Agreement was acknowledged before me this
           day of
                          ,
20    , by
                            
as                                   
of Solera National Bancorp, Inc., on behalf of said corporation.

 

WITNESS
my hand and official seal.

My
commission expires:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary
  Public

  
	
  STATE
  OF COLORADO

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY
  OF DENVER

  	
  )

  

 

The
foregoing Separation Agreement was acknowledged before me this
           day of
                          ,
20    , by
                            
as                                   
of Solera National Bank, on behalf of said corporation.

 

WITNESS
my hand and official seal.

My
commission expires:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary
  Public

  

 

19Exhibit 10.1

 

FACILITIES
MANAGEMENT AGREEMENT

 

BETWEEN

 

GLOBAL
MONTELLO GROUP CORP.

(OWNER)

 

AND

 

ALLIANCE
ENERGY LLC

(MANAGER)

 

* * *

 

 

Effective as of September 8, 2010

 

 

FACILITIES
MANAGEMENT AGREEMENT

 

THIS FACILITIES MANAGEMENT AGREEMENT (this “Agreement”)
is made and entered into this 13th day of
September, 2010, with an effective date as of the 8th day of September, 2010
(the “Effective Date”), by and between Global Montello Group Corp., a Delaware
corporation (“Owner”), and ALLIANCE ENERGY LLC, a Massachusetts limited
liability company (“Manager”).

 

WITNESSETH:

 

WHEREAS, Owner owns or expects to own (in fee or by
lease) and operate those certain fuel and convenience store facilities,
together with the ancillary services in connection therewith, described on Exhibit “A-1”
attached hereto (as the same may be amended from time to time, the “CORS
Facilities”);

 

WHEREAS, Owner owns and has leased to third-party
operators certain equipment located at those certain fuel and convenience store
facilities (together with the ancillary services in connection therewith)
described on Exhibit “A-2” attached hereto (as the same may be amended
from time to time, the “CODO Facilities”; together with the CORS Facilities,
are hereinafter defined collectively as the “Facilities” and each individually
as a “Facility”); and

 

WHEREAS, Owner desires to employ Manager in the
management and operation of the Facilities by delegating to Manager duties with
respect to the day-to-day operation, direction, management and supervision of
the Facilities, and Manager desires to assume such duties upon the terms and
conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual promises and covenants herein
contained, Owner and Manager agree as  follows:

 

ARTICLE I

 

DEFINITIONS

 

The following terms shall have the following
meanings when used in this Agreement:

 

1.1                               Affiliate. An Affiliate of a Person shall mean (i) any
other Person that is directly or indirectly (through one or more
intermediaries) controlled by, under common control with, or controlling such
Person, or (ii) any other Person in which such Person has a direct or
indirect equity interest constituting at least a majority interest of the total
equity of such other Person. For purposes of this definition, “control” shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of any Person or the power to veto
major policy decisions of any Person, whether through the ownership of voting
securities, by contract or otherwise. 
For purposes of this Agreement, Owner and Manager shall not be deemed
Affiliates of one another, as such term is used and applied herein.

 

1.2                               Budget. A composite of an operating budget and a capital
budget as mutually agreed upon by Owner and Manager from time to time, but not
less frequently than once every Fiscal Year.

 

1.3                               Depository. One or more national or state banks approved by
Owner.

 

1.4                               Environmental Laws. Any and all federal, state, or local laws,
statutes, ordinances, rules, decrees, orders, or regulations relating to the
environment, hazardous substances, materials, or waste, toxic substances,
pollutants, or words of similar import, or environmental conditions at, on,
under, or originating or migrating from any Facility, or soil, water and
groundwater conditions, including, but not limited to, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, 42
U.S.C. § 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §
6901, et seq., the Toxic Substances Control Act, as amended, 15 U.S.C. § 2601,
et seq., the Clean Air Act, as amended, 42 U.S.C. § 1857, et seq., the Federal
Water Pollution Control Act, as amended, 42 U.S.C. § 1251, et seq., the Federal
Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq., any
amendments to the foregoing, and 

 

1

 

any similar federal, state
or local laws, statutes, ordinances, rules, decrees, orders or regulations.

 

1.5                               Facilities Employees. Those persons employed by
Manager in order to directly manage, lease, maintain and operate the Facilities
as contemplated by the Budget; provided that Facilities Employees shall not
include any employees above the grade of territory manager and shall not
include general administrative employees of Manager or its Affiliates engaged
in oversight, administration or accounting for the Facilities.

 

1.6                               Fiscal Year. The year beginning January 1 and ending December 31,
or as otherwise established by Owner.

 

1.7                               GAAP. Generally accepted accounting principles,
consistently applied.

 

1.8                               Governmental Authority. Governmental Authority
shall mean any federal, state, county, municipal or other government or any
governmental or quasi-governmental agency, department, commission, board,
bureau, office or instrumentality, foreign or domestic, or any of them.

 

1.9                               Initial Term. Subject to earlier termination, the initial term of
this Agreement shall commence on the Effective Date hereof and shall continue
until September 30, 2013.

 

1.10                        Person. Person shall mean an individual, a partnership, a
limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, or a Governmental
Authority.

 

1.11                        Related Management Agreement. That certain Facilities
Management Agreement between Global Companies LLC and Manager dated on or about
the date hereof.

 

1.11                        Standards.  The standard
of care and skill required to effectively operate fuel and convenience store
facilities (and those ancillary services related thereto) consistent with
industry practices for facilities which are otherwise comparable to the
Facilities.  To the extent, and for the
duration that, any individual Facility is governed by the terms and conditions
of any agreement by and between ExxonMobil Oil Corporation and/or Exxon Mobil
Corporation (singly or collectively, “XMO”) and Owner, as the same may be
amended, extended or replaced from time to time, the term “Standards” shall
also mean and include the standard of care and skill required by XMO pursuant
to those certain procedures and standards established by XMO from time to time.

 

1.12                        Subsequent Term.  As
defined in Section 7.5 of this Agreement.

 

1.12                        Term. Subject to earlier termination or extension,
collectively the Initial Term and any and all Subsequent Terms.

 

ARTICLE II

 

DUTIES AND RIGHTS OF MANAGER

 

2.1                               Appointment of Manager.

 

(a)                             During the Term
of this Agreement, Owner hereby approves and designates Manager as its agent
and grants to Manager the right to supervise and direct the day-to-day
management and operation of the Facilities upon the terms and conditions
provided herein.  Manager hereby agrees
to the foregoing in consideration of the compensation hereinafter provided and
pursuant to the terms and conditions provided herein.

 

(b)                            Manager, as an
independent contractor and as agent of the Owner, has the authority to control
and direct the day-to-day management and operation of the Facilities. Except as
otherwise set forth herein, and provided the same are included in the Budget,
all obligations or expenses incurred hereunder, including the pro rata portion
used  in connection with or for
the benefit of the Facilities of all purchases of, or 

 

2

 

contracts for, sales or services in bulk or in
volume which Manager may obtain for discount or convenience in connection with
its operation of other fuel and convenience stores, shall be for the account
of, on behalf of, and at the expense of, Owner, except as otherwise
specifically set forth in this Agreement.

 

(c)                             In performing
its duties, responsibilities, and obligations hereunder, Manager accepts the
relationship of trust and confidence established between Owner and Manager by
this Agreement, and agrees: (i) to act in a fiduciary capacity with
respect to the matters subject to Manager’s control under this Agreement; (ii) to
deal at arm’s length with all persons and parties providing services with
respect to the Facilities; (iii) to furnish its skill and judgment in the
operation of the Facilities in accordance with the Standards; (iv) to
cooperate with Owner and to furnish efficient business administration and
oversight in a manner consistent with the Budget; (v) to coordinate with
Owner and obtain direction, approvals, and consents from Owner to the extent
required under this Agreement; and (vi) to devote a sufficient amount of
time, attention, skilled personnel, and other resources to its duties and
responsibilities under this Agreement.

 

2.2                               General Operation.

 

(a)                             Manager shall
operate the Facilities in accordance with the Standards, including, without
limitation, ensuring compliance with all branding and proprietary requirements.

 

(b)                            In addition to
the other obligations of Manager set forth herein, Manager shall render the
following services consistent with the Budget and perform the following duties
for Owner in a faithful, diligent efficient manner:

 

(1)                                       Provide all
management services as described on Exhibit “B” attached hereto and
incorporated herein;

 

(2)                                       Provide quality
merchandise and maintain adequate inventory of motor fuel and convenience store
inventory normally offered for sale from a first class, full service,
automotive service station and convenience store of similar size and type to
the Facilities;

 

(3)                                       Perform all
services in a good workmanlike manner;

 

(4)                                       Ensure orderly
and well-kept business establishments and keep the Facilities (interior and
exterior), sidewalks, pump islands, approaches, landscaping and driveways
properly lighted, clean, safe, sanitary and free of trash, rubbish and other
debris;

 

(5)                                       Maintain
sufficiently trained and qualified employees required to consistently operate
the Facilities in an efficient, courteous and organized manner; and

 

(6)                                       Comply with the
requirements of any conditional use permit(s), license(s), approval(s) and
all other applicable laws covering the operation of the Facilities.

 

2.3                               Manager and Other Personnel.

 

(a)                             Manager shall
have in its employ at all times sufficient number of capable Facilities
Employees to properly, safely, and economically manage, operate and maintain
the Facilities, as set forth in the Budget. All matters pertaining to the
employment, supervision, compensation, promotion, and discharge of such
employees are the responsibility of Manager; provided however, that salaries,
wages, and costs of each Facilities Employee shall be detailed in the Budget
and such amounts shall be paid from the Facilities accounts.

 

(b)                            Manager shall
comply with all applicable laws and regulations having to do with worker’s
compensation, social security, unemployment insurance, hours of labor, wages,
working conditions and other employer-employee related subjects under Manager’s
control. Manager represents that it is and will continue to 

 

3

 

be an Equal Opportunity
Employer.

 

(c)                             Manager shall
comply with all federal immigration laws relating to its employees and shall
not employ any person who is not authorized to work or remain a resident of the
United States pursuant to federal law.

 

(d)                            Manager shall
work with Owner to comply with all municipal, state and federal laws relating
to the storage, distribution and sale of tobacco products and alcoholic
beverages, including maintaining the proper permits for the Facilities and
Manager’s employees working at the Facilities for the sale thereof.

 

(e)                             All persons
employed in connection with the management and operation of the Facilities
shall be employees of the Manager or of such consultants, independent
contractor or contractors as may be retained by Manager.

 

2.4                               Contracts and Supplies. Manager shall, in the name
of, and on behalf of, Owner, and at Owner’s expense, and in accordance with the
Budget, (x) consummate arrangements with concessionaires, licensees,
suppliers, vendors and other providers of goods and services to the Facilities,
as applicable, (y) enter into contracts for the furnishing to the
Facilities of electricity, gas, water, telephone, cleaning, vermin extermination,
heating, ventilation and air-conditioning maintenance, security protection,
pest control, and any other utilities, goods, services and concessions to be
provided in connection with the maintenance and operation of the Facilities in
accordance with the Standards, as applicable, and (z) place purchase
orders for such equipment, tools, appliances, materials and supplies as are
necessary to properly maintain, and are used exclusively for, the Facilities,
as applicable. Any contracts or agreements (i) with a cancellation or
termination fee in excess of $100,000, or (ii) the scope of which are
outside of the ordinary course of business and are not otherwise contemplated
under the Budget, shall be executed by Owner, but other contracts and
agreements may be executed by Manager as Owner’s agent. Each such contract or
agreement shall: (a) be in the name of the Facility or Facilities it will
serve, (b) be assignable, at Owner’s option, to Owner or Owner’s nominee, (c) include
a provision of cancellation thereof by Owner or Manager upon not more than one
hundred twenty (120) days written notice and/or contain a cancellation or
termination fee not in excess of $100,000, unless otherwise agreed in writing
by Owner and Manager, and (d) shall require that all contractors provide
evidence of sufficient insurance and named insureds on terms satisfactory to
Owner. If this Agreement is terminated pursuant to Article VII, Manager
shall, at Owner’s option, assign to Owner or Owner’s nominee all contracts and
agreements pertaining to any of the Facilities. Manager shall notify Owner if
any such contracting entity is either a subsidiary, affiliate, or has any other
relationship whatsoever to Manager. Manager shall be authorized to use third
party services so long as the prices for services/sales by such parties are
competitive with other market-rate suppliers. Manager shall pass on to Owner,
as additional operating revenue or reduced operating expenses, as the case may
be, all rebates and discounts received by Manager or its Affiliates in
connection with its management of the Facilities.

 

2.5                               Alterations, Repairs and Maintenance.

 

(a)                                  Manager shall
make or install, or cause to be made and installed, or do or cause to be done
at Owner’s expense and in the name of Owner, all reasonably necessary or
desirable repairs, interior and exterior cleaning, painting and decorating,
plumbing, alterations, replacements, improvements and other normal maintenance
and repair work on and to the Facilities consistent with the Standards and in accordance
with the Budget; provided, however, that no unbudgeted expenditure in excess of
$50,000 per item may be made for such purposes without the prior written
approval of Owner, unless emergency repairs involving manifest danger to life
or property are immediately necessary for the preservation of the safety of the
Facilities, or for the safety of the customers, are required to avoid the
suspension of any necessary service to the Facilities, or are in response to
spills, in which event such expenditures may be made by the Manager without
prior approval and irrespective of the cost limitations imposed by this Section 2.5(a).
Manager shall, however, before the end of the next business day, notify Owner
in detail of such expenditures.

 

4

 

(b)                                 In accordance
with the terms of the Budget or upon written approval (except in the case of
emergency) of Owner, Manager shall, at Owner’s expense, from time to time
during the Term hereof, make all required capital replacements or repairs to
the Facilities.

 

2.6                               Licenses and Permits. Manager and Owner shall
work together to apply for, obtain and maintain, in the name and at the expense
of Owner, all licenses and permits required of Owner or Manager in connection
with the management and operation of the Facilities. Notwithstanding the
foregoing, Owner, with Manager’s assistance, shall maintain all UST
certification in its name. Owner agrees to execute and deliver any and all
applications and other documents and to otherwise reasonably cooperate with
Manager in applying for, obtaining and maintaining such licenses and permits.

 

2.7                               Compliance. Manager, at Owner’s expense, shall cause all such
acts and things to be done in and about the Facilities as Manager shall
reasonably deem necessary to comply with (a) all laws, regulations and
requirements of any federal, state or municipal government, having jurisdiction
respecting the use or manner of use of the Facilities or the maintenance or
operation thereof, and (b) the Standards.

 

2.8                               Legal Proceedings. If Manager shall receive any notice or
become aware of any claim, demand, suit or other legal proceeding made or
instituted against Owner and/or Manager on account of any matter connected with
any Facility, Manager shall give Owner and all applicable insurance companies
all information in its possession in respect thereof, and shall assist and
cooperate with Owner in all respects in the defense of any such suit or other
legal proceeding. Manager shall obtain the written authorization of Owner
before entering into any compromise, settlement, or release of any such legal
action; provided, however, the written authorization of Owner shall not be
required for any compromise, settlement, or release of legal action if (a) the
cost to Owner of the same is less than $5,000, or (b) such action is
within the ordinary course of business. Any moneys for such settlements paid
out by Manager shall be an operating expense of the Facilities. Except in
connection with the defense of any suit or other legal proceeding as to which
Owner or Manager is obligated to indemnify the other party under Sections 6.2
or 6.3, respectively, reasonable attorney’s fees, filing fees, court costs and
other necessary expenditures incurred in the connection with such action shall
be paid out of the Facilities operating account or shall be reimbursed directly
to Manager by Owner. Manager, with Owner’s approval, may select the attorney or
attorneys to handle any and all such litigation.

 

2.9                               Notice to Owner. Manager shall promptly notify Owner in
writing of the occurrence of any of following: (i) any material breach of
this Agreement by Owner or Manager, (ii) following detection of, any
fraud, misrepresentation or embezzlement by Manager or any of the Facilities
Employees (other than cash shortages, inventory shrinkage or petty theft, which
are otherwise not unusual in the operation of fuel and convenience store
facilities), and (iii) any other significant event whether occurring at a
Facility or off-site which could have an adverse material effect on the
operation of the Facilities individually or collectively.

 

2.10                        Environmental Compliance.

 

(a)                                  Manager agrees
to comply and cooperate with and abide by all Environmental Laws.  Manager shall adopt and use, or cause to be
adopted or used, all engineering and related technical assistance available and
standard to the industry and any required by the Governmental Authority to
protect the health and safety of persons, which may include, depending upon
development activities occurring at the Facilities from time to time, the use
of engineering controls to prevent the migration of vapors and/or liquids
containing contamination into any buildings, underground utilities or storm
water retention/detention ponds.

 

(b)                                 Manager shall
forward to Owner immediately upon receipt, by facsimile or overnight service,
copies of all notices from Governmental Authorities that may apply to or affect
Owner’ interest or rights in the Facilities, or that result from actual or
alleged violations of law or standards at any Facility. Owner shall have the
right to promptly investigate and undertake the appropriate remedy. Manager
agrees to cooperate at all times with Owner, and/or the prior owners of the
Facilities, during any investigation or remedial activity.

 

5

 

(c)                                  Manager agrees
that representatives of Owner shall be permitted to enter upon the Facilities
from time to time to perform physical measurements and reconciliation(s) of
product stored in the UST system and to inspect and/or test any equipment and
review any records used for complying with any local, state or Federal
environmental protection or environmental compliance requirement including, but
not limited to, Manager’s inventory reconciliation(s) and inspection
records. However, Owner is not obligated to make any such inspections or tests.

 

ARTICLE III

 

MANAGEMENT
FEES

 

3.1                               Management Fee. Management fees shall be paid to Manager in
such amounts and at such times as set forth on Exhibit “C” attached hereto
and incorporated herein and as otherwise set forth herein.

 

ARTICLE IV

 

DEPOSITS
AND DISBURSEMENTS

 

4.1                               Bank Deposits. All amounts received at or with respect to the
Facilities by Manager for, or on behalf of, Owner shall be deposited by Manager
with the Depository in such accounts and in such a manner as mutually agreed to
by the chief financial officers of Owner and Manager.  All monies of Owner held by Manager pursuant
to the terms hereof shall be held by Manager in trust for the benefit of Owner to
be held and disbursed in accordance with this Agreement.

 

4.2                               Disbursement of Deposits. Manager shall disburse and
pay all funds on deposit in the operating accounts maintained hereunder on
behalf of, and in the name of, Owner in such amounts and at such times as the
same are required in connection with the ownership, maintenance and operation
of the Facilities, as applicable, in accordance with the Budget, subject to the
limitations set forth in this Agreement, including Section 4.1 above.

 

4.3                               Working Capital. Owner shall furnish and maintain in the
operating accounts maintained by Manager hereunder such funds as may be
necessary to discharge financial commitments required to efficiently operate
the Facilities, meet all payrolls and satisfy, before delinquency, all accounts
payable, and reimburse Manager for authorized costs and expenses paid or
incurred by Manager hereunder; it being understood and agreed that Manager
shall have no responsibility or obligation with respect to furnishing any such
funds.

 

4.4                               Authorized Signatories. Any persons from
time-to-time designated by Manager and approved by Owner shall be authorized
signatories on all bank accounts established by Manager hereunder and shall
have authority to make disbursements from such accounts, subject to the
limitations set forth herein.

 

ARTICLE V

 

ACCOUNTING

 

5.1                               Books and Records. Manager shall keep books and records in
accordance with GAAP or by such other manner as reasonably requested by Owner
from time to time.  Manager shall
preserve all books and records for a period of seven (7) years.  Books and records shall be kept at the
Facilities or at the locations where any central accounting and bookkeeping
services are performed by Manager, but at all times shall be the property of
Owner.

 

5.2                               Periodic Statements and Audits.  Manager shall deliver, or cause to be
delivered, to Owner such reports as are required to be prepared and/or
delivered by Manager or as otherwise reasonably requested by Owner from time to
time.

 

6

 

5.3                               Internal Control over Financial Reporting.  As it pertains herein, Owner shall, with the
assistance of Manager, be responsible for establishing and maintaining
effective internal control over financial reporting (the process for which is
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with GAAP) and assessing the effectiveness of internal control over
financial reporting.  As it pertains
herein, Owner shall, with the assistance of Manager, perform an evaluation and
make an assessment of the effectiveness of internal control over financial
reporting as of each Fiscal Year ending December 31, based on criteria established
in Internal Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (“COSO”).  Based on such assessment, Owner, with the
assistance of Manager, shall conclude whether effective internal control over
financial reporting was maintained for each Fiscal Year ending December 31,
based on the control criteria established by COSO.  Additionally, Manager shall advise Owner
whether there has been any change in the internal control over financial
reporting that occurred during each fiscal quarter ending March 31, June 30,
September 30 and December 31 that has materially affected, or is
reasonably likely to materially affect, the internal control over financial
reporting.

 

ARTICLE VI

 

GENERAL
COVENANTS OF OWNER AND MANAGER

 

6.1                               Owner’s  Right of
Inspection and Review.  For
the purpose of examining or inspecting the Facilities and examining or auditing
or making extracts of books and records, Owner and Owner’s partners,
accountants, attorneys and agents shall have the right, upon reasonable notice,
to enter upon any part of the Facilities, or at the locations where central
accounting and bookkeeping services are performed by Manager, at all reasonable
times during the Term of this Agreement; provided that any inspection shall be
done with as little disruption to the business of the Facilities or Manager as
possible. Manager shall be entitled to require that representatives of Owner
conducting any such inspection be accompanied by representatives of Manager.

 

6.2                               Owner’s Indemnity. Manager shall be indemnified and held
harmless by Owner from and against any and all claims, demands, liabilities,
costs (including reasonable attorney’s fees), damages, and causes of action of
any nature whatsoever arising out of or incidental to Manager’s performance of
its responsibilities under this Agreement except as provided to the contrary in
this Agreement or where Manager has committed (i) fraud, (ii) gross
negligent acts or omissions, (iii) willful misconduct, (iv) a
material breach of any provision of this Agreement, or (v) the alleged or
actual violation by Manager of labor, employment, or discrimination laws (in
any or all such cases in (i)-(v), an “Improper Action”). Notwithstanding the
foregoing, Owner shall defend, indemnify and hold Manager and its Affiliates
harmless from any claims, damages or liabilities related to environmental
contamination and/or remediation arising out of a release of gasoline, diesel
or any hazardous substance at the Facilities (an “Environmental Action”),
except to the extent such Environmental Action arose out of the gross
negligence or intentional acts of, or material breach of Section 2.10 of
this Agreement by, Manager or its Affiliates, employees, agents or
representatives.

 

6.3                               Manager’s Indemnity. Manager shall indemnify and
hold Owner harmless from and against any and all claims, demands, liabilities,
costs (including reasonable attorney’s fees), damages, and causes of action of
any nature whatsoever arising out of activities by Manager constituting an
Improper Action or due to the gross negligence or intentional acts of, or
material breach of Section 2.10 of this Agreement by, Manager or its
Affiliates, employees, agents or representatives resulting in an Environmental
Action; provided, however, Manager’s aggregate liability hereunder and under
the Related Management Agreement shall in no event exceed Five Million Dollars
($5,000,000), over and above the utilization of any and all insurance proceeds.

 

6.4                               Waiver of Claims. Notwithstanding anything in this Agreement
to the contrary, Owner and Manager hereby waive and release each other from any
and all right of recovery, claim, liability, loss or damage that 

 

7

 

may occur to the Facilities
or any personal property within the Facilities by reason of fire, elements,
casualty, or other matters which are insurable under an all-risk property
insurance policy, regardless of whether the negligence or fault of the other
party or other party’s agents, officers, or employees causes or is alleged to
have caused such claim, liability, loss or damage; provided, however, that if
either party’s acts or omissions under this Agreement or in connection
therewith result, for any reason, in nonpayment or underpayment of insurance
proceeds covering such claim, loss, liability or damage, or in payment by such
other party of a deductible, the offending party shall indemnify, pay, bear and
hold the non-offending party harmless for the actual losses and expenses
resulting from or associated with such liability, claim, loss or damage. Owner
and Manager shall obtain a waiver of subrogation from their respective
insurance companies, which have issued policies covering all risk of direct
physical loss and shall have the insurance policies endorsed, if necessary, to
prevent the invalidation of the insurance coverages by reason of the mutual
waivers contained herein.

 

6.5                               Scope of Indemnity. Any party’s duty to indemnify any other
party, as provided for in Section VI hereof, shall include the obligation
to defend the indemnified party in any such action. All costs and expenses of
such defense shall be borne by the indemnifier. In the event the indemnitee
deems it necessary or expedient to procure legal representation in such proceeding
in order to protect the indemnitee’s rights therein, all costs and expenses of
such defense (including, but not limited to, reasonable attorney’s fees) shall
be borne by the indernnitor. The indemnitor waives for itself and for its
insurance carriers any rights of subrogation which the indemnitor’s insurance
carriers may have against the indemnitees. THE
INDEMNITIES SET FORTH IN THIS ARTICLE VI SHALL APPLY EVEN IF THE SUBJECT
LOSSES, CLAIMS, LIABILITIES OR DAMAGES ARE DUE IN PART TO AN INDEMNITEE’S
GROSS NEGLIGENCE OR OTHER FAULT BUT SHALL NOT EXTEND TO THE PERCENTAGE OF
DAMAGES CAUSED BY SUCH INDEMNITEE’S GROSS NEGLIGENCE OR OTHER FAULT.

 

6.6                               Term of Indemnification. The indemnification made by
any party to this Agreement, for and on behalf of any other party to this
Agreement, for and on behalf of any other party to this Agreement, shall
survive the termination of this Agreement.

 

ARTICLE VII

 

DEFAULTS
AND TERMINATION RIGHTS

 

7.1                               Termination Upon Event of Default.

 

(a)                                  The following
shall constitute events of default (“Events of Default”):

 

(i)             the filing of a
voluntary petition in bankruptcy or insolvency or a petition for reorganization
under any bankruptcy law by either Owner or Manager;

 

(ii)          the consent to
an involuntary petition in bankruptcy or the failure by either Owner or Manager
to vacate within sixty (60) days from the date of entry thereof of any order
approving an involuntary petition;

 

(iii)       the entering of
an order, judgment or decree by any court of competent jurisdiction, on the
application of a creditor, adjudicating either Owner or Manager a bankrupt or
insolvent or approving a petition seeking reorganization or appointing a
receiver, trustee or liquidator of all or a substantial part of such party’s
assets, and such order, judgment or decree shall continue unstayed and in
effect for a period of sixty (60) days;

 

(iv)      the gross negligence, fraud
or willful misconduct of Owner or Manager, as the case may be, in the
performance or observance of its obligations, duties or services, 

 

8

 

as applicable, provided for
under the terms of this Agreement, to the extent the same materially and
adversely effects the non-defaulting party;

 

(v)         the failure of
either Owner or Manager to perform, keep or fulfill any of the covenants,
undertakings, obligations or conditions set forth in this Agreement to the
extent the same materially and adversely effects the non-defaulting party, and
the continuance of any such default for a period of ninety (90) days after
written notice of said failure or, if such default (a) is not a default in
the payment of a monetary sum provided to be paid under this Agreement, and (b) cannot
be reasonably cured within such ninety (90) day period but is susceptible of
cure with reasonable diligence, and Owner or Manager (whichever is the
defaulting party) commences such cure promptly following receipt of written
notice of said failure, then for such additional period as such cure shall
continue to be pursued with reasonable diligence, but in any event not longer
than one hundred twenty (120) days after written notice of said failure, unless
and except further extensions of the cure period are afforded to the defaulting
party upon written consent from the non-defaulting party, which consent shall
not be unreasonably withheld, conditioned or delayed; and

 

(vi)      the occurrence of an Event
of Default under the Related Management Agreement.

 

(b)                                 Upon the
occurrence of an Event of Default, the non-defaulting party may, without
prejudice to any other recourse at law or in equity which it may have, give to
the defaulting party notice (a “Final Notice”) of the termination of this
Agreement and upon the delivery of such Final Notice to the defaulting party,
this Agreement shall terminate.

 

7.2                               Remedies of Owner. Upon the occurrence of an Event of Default
by Manager, Owner shall, in addition to the right of termination set forth
above, have the right to take such action as shall be necessary to cure such
default on behalf of Manager, and Manager shall pay to Owner, within ten (10) business
days following written demand by Owner, such sums as Owner has incurred or is
obligated to pay in order to cure such default, together with interest thereon
from the date of advancement by Owner at a default rate equal to 5%  per annum if such sum is not timely paid by
Manager. Owner shall have no further obligation to pay any management fee or
other amounts due hereunder which would otherwise accrue after the date of such
termination and Manager shall remain liable for any losses suffered as a result
of Manager’s default and the resulting termination of this Agreement.

 

7.3                               Remedies of Manager. Upon the occurrence of an
Event of Default by Owner as specified in Section 7.1 hereof, Manager
shall be entitled to terminate this Agreement, and upon any such termination by
Manager pursuant to this Section 7.3, Owner shall continue to be obligated
to pay and perform all of its obligations which have accrued as of the date of
termination, including accrued management fees and other amounts due hereunder.

 

7.4                               Casualty. In the event that any of the Facilities is
substantially or totally damaged or destroyed by fire, tornado, windstorm,
flood or other casualty during the Term of this Agreement, such Facility shall
be excluded from this Agreement for the period of rebuilding or restoration;
provided that Owner shall have no obligation to restore such Facility. Owner
shall be entitled to retain all insurance and condemnation proceeds
attributable to such occurrence.

 

7.5                               Extension of the Term. The Initial Term of this
Agreement shall automatically be extended for consecutive additional one (1) year
periods (each, a “Subsequent Term”) upon written notice by either party
electing to extend such Term (an “Extension Notice”) not less than twenty four
(24) months prior to the expiration date of the then current Term (the “Notice
Date”).  Upon receipt of an Extension
Notice, the parties shall have up to 

 

9

 

one hundred (120) days to
reach a mutual agreement as to the amount of the management fee for such
Subsequent Term.  If no party delivers an
Extension Notice by the Notice Date or the parties are unable to agree upon a
management fee for the next Subsequent Term within one twenty (120 ) days of
receipt of an Extension Notice, then this Agreement shall automatically expire
at the end of the then current Term.

 

7.6                               Actions Upon Termination or Expiration of the Term; Delivery of Books and
Records. Upon the expiration or termination of this Agreement,
each party hereto shall promptly pay to the other, as soon as the same is
reasonably determinable after the effective date of such expiration or
termination, any and all amounts (if any) required to be paid to the other
party hereto in accordance with the terms of this Agreement, and upon such
payments neither party hereto shall have any further claim or right against the
other except as may be otherwise expressly provided herein. Further, upon the
effective date of such expiration or termination of this Agreement, Manager
shall immediately deliver to Owner (or to any other party at Owner’s direction)
the originals of all books, permits, plans, records, leases, licenses,
contracts, correspondence and other documents pertaining to the Facilities and
their operation, as well as all equipment, supplies, keys, locks,
safety-combinations, and advertising and promotional materials developed,
maintained, kept or possessed by Manager with respect to the Facilities.

 

ARTICLE VIII

 

INSURANCE

 

8.1                               Insurance Coverage. Manager will maintain and keep in force a
comprehensive program of insurance insuring both Owner and Manager against
risks commonly insured against by the owners and operators of comparable
facilities, including without limitation (i) commercial general liability
insurance insuring against loss, damage or injury to property or persons which
might arise out of the occupancy, management, operation, or maintenance of the
Facilities with bodily injury coverage of not less than One Million Dollars
($1,000,000) per incident and not less than Two Million Dollars ($2,000,000) in
the aggregate, (ii) worker’s compensation insurance in full compliance
with all applicable state and federal laws and regulations covering all
employees of Manager performing work with respect to the Facilities operations,
and (iii) automobile liability insurance with bodily injury limits of not
less that One Million Dollars ($1,000,000) in the aggregate. Manager and Owner
shall agree annually upon the precise scope of such program of insurance,
including the types of coverage to be obtained, the policy limits of such
policies, the self-insured retention and deductible to be maintained under any
such policy and the identity of the insurance company(ies) providing such
coverage. Owner and Manager will both be named insureds as to property
insurance, commercial general liability insurance, automobile liability
insurance and UST insurance, but only Manager (as the employer) shall be the
named insured on the workers’ compensation insurance. Owner and Manager agree
that in the event any Facility sustains a loss by reason of fire or other
casualty which is covered by property insurance and such fire or casualty is
caused in whole or in part by the acts or omissions of Manager, its agents,
servants, or employees, then Owner agrees to look solely to its insurance
proceeds and Owner shall have no right of recovery against Manager or its
agents, servants or employees, and no third party shall have any right of
recovery against Manager, its agents, servants, or employees by way of
subrogation. Such subrogation provision between Manager and Owner shall be
disclosed to Owner’s insurer. This provision shall apply with respect to any
policies presently maintained or that may hereafter be acquired by Owner.  Manager shall provide a certificate to Owner
showing all requirements set forth in this section. Owner shall, maintain UST
insurance for all of the underground storage tanks maintained at the
Facilities.

 

8.2                               Subrogation and Indemnity Provisions.

 

(a)                                  Any insurance
which is procured and maintained which in any way is related to the Facilities
or the authorized activities connected therewith, is for the sole benefit of
the party securing such insurance and others named as insureds, and Manager and
Owner hereby release the other from all rights of recovery under or through
subrogation or otherwise for any loss or damage to the extent recovery is made
from insurance.

 

10

 

(b)                                 Without
limiting subsection (a) of this Section 8.2, Owner and Manager hereby
waive against the other any and all claims and demands of whatsoever nature for
damages, loss or injury to the other’s property in, upon or about the
Facilities, except for claims and demands arising out of gross negligence or
willful misconduct of Owner, Manager, or either of their respective agents,
employees, officers or contractors.

 

(c)                                  Owner shall
indemnify, defend and hold Manager and Manager’s agents, officers and employees
harmless from all claims, losses, costs, damages or expenses resulting or
arising from the failure by Owner to effect and maintain any insurance coverage
required herein to be maintained by Owner.

 

(d)                                 Manager shall
indemnify, defend and hold Owner and Owner’s agents, officers and employees
harmless from all claims, losses, costs, damages or expenses resulting or
arising from the failure by Manager to effect and maintain any insurance
coverage required herein to be maintained by Manager.

 

ARTICLE IX

 

MISCELLANEOUS
PROVISIONS

 

9.1                               Governing Law. This Agreement shall be governed by and
construed and interpreted in accordance with the laws of the Commonwealth of
Massachusetts.

 

9.2                               Notices. Any notice or communication hereunder must be in
writing, and may be given by registered or certified mail, or by personal
delivery, regular mail, courier service, facsimile transmission, electronic
transmission or other commercially reasonable means. If given by registered or
certified mail, notice shall be deemed to have been given and received on the
earlier of actual receipt or refusal of delivery or the third business day
following the date on which a registered or certified letter containing such
notice, properly addressed, with postage prepaid, is deposited in a postal
receptacle regularly serviced by the United States Postal Service. If given
otherwise than by registered or certified mail, such notice shall be deemed to
have been given when delivered to and received by the party to whom it is
addressed. Such notices or communications shall be given to the parties hereto
at the addresses set forth beneath the names of the respective parties on the
signature page hereof. Any party hereto may, at any time and from time to
time, by giving not less than ten (10) days’ prior written notice to the
other party hereto, designate any other address in substitution of the
foregoing address to which such notice or communication shall be given.

 

9.3                               Severability. If any term, covenant or condition of this
Agreement or the application thereof to any person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder of this Agreement, or
the application of such term, covenant or condition to persons or circumstances
other than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each term, covenant or condition of this Agreement shall
be valid and shall be enforced to the fullest extent permitted by law.

 

9.4                               No Joint Venture or Partnership. The relationship between
Owner and Manager under the terms of this Agreement shall be that of
independent parties, and notwithstanding anything to the contrary set forth
herein, Manager shall perform its duties and provide the services contemplated
by this Agreement as an independent contractor. Except as expressly provided to
the contrary in this Agreement, it is agreed that Owner is concerned only with
the result of the performance of such duties and provision of such services and
is not directing Manager as to particular means and methods of performing such
duties and providing such services. Nothing contained in this Agreement shall
be deemed to constitute a partnership, joint venture or any other similar
relationship. No personal liability shall accrue hereunder against any
individual, officer, director, shareholder, representative or employee of Owner
or Manager.

 

9.5                               Dispute Resolution. Owner and Manager hereby mutually agree that
any dispute or claim in law or equity arising out of this Agreement or any
resulting transaction, including disputes or claims involving the parties to
this Agreement, their officers, agents, or employees, shall be submitted to
neutral, binding 

 

11

 

mediation. The parties agree
to act in good faith to participate in mediation, and to identify a mutually
acceptable mediator. If a mediator cannot be agreed upon by the parties, each
party shall designate a mediator and those mediators shall select a third
mediator who shall act as the neutral mediator, assisting the parties in
attempting to reach a resolution.  Such
mediator will render a final and binding decision on those unresolved items
which shall be binding upon the parties and shall be enforceable in any court
of competent jurisdiction. Both parties shall share the cost of the dispute
resolution process equally although attorneys and witnesses or specialists are
the direct responsibility of each party and their fees and expenses shall be
the responsibility of the individual parties.

 

9.6                               Consequential Damages. Notwithstanding anything to
the contrary in this Agreement, each of Owner and Manager waive, to the fullest
extent permitted by law, the right to recover business disruption, lost
profits, incidental, punitive, special, indirect or consequential damages
arising from or related to this Agreement.

 

9.7                               Confidentiality. 
Manager and Owner each acknowledges and agrees that any information
constituting a trade secret or otherwise of a proprietary, secret or
confidential nature of or relating to each other’s business (collectively, “Confidential
Information”) acquired by either Manager or Owner during the course of the Term
of this Agreement is the exclusive property of, and of great value to, Owner or
Manager, as the case may be.  Each party
agrees that without the prior written permission of the other party, neither
party shall divulge to any person or entity (other than to officers, directors
and employees of Owner and Manager, or in connection with the proper business
and affairs of Owner or Manager), either during the Term or at any time
thereafter, any Confidential Information, unless and to the extent that said
information becomes publicly known (a) other than as a result of Manager’s
or Owner’s gross negligence or willful misconduct; or (b) as may be
required by applicable law or in connection with any investigation, suit or
other proceeding before any court, tribunal, arbitration proceeding or agency
having competent jurisdiction thereover, provided, however, that Manager and
Owner each agrees to use its best efforts to provide the affected party with
adequate and timely written notice so as to enable such party to seek a
protective order or other appropriate relief.

 

9.8                               Modification. Any amendment, modification, termination or release
of this Agreement may be effected only by a written instrument executed by
Manager and Owner.

 

9.9                               Total Agreement. This Agreement is a total and complete
integration of any and all undertakings existing between Manager and Owner with
respect to the management of the Facilities and supersedes any prior oral or
written agreements, promises or representations between them concerning such
subject matter.

 

9.10                        Approvals and Consents. If any provision hereof
requires the approval or consent of Owner or Manager to any act or omission,
such approval or consent shall not be unreasonably withheld, conditioned or
delayed.

 

9.11                        Successors and Assigns. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
permitted successors and assigns. Neither party may assign this Agreement
without obtaining the other party’s prior written consent; provided, however,
that either party may, without the other party’s consent, assign this Agreement
to any Affiliate.

 

[SIGNATURES APPEAR ON
FOLLOWING PAGE]

 

12

 

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

 

	
   

  	
  OWNER:

  
	
   

  	
   

  
	
   

  	
  GLOBAL MONTELLO GROUP CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J. Hollister

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Thomas J. Hollister

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Operating Officer and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  800 South Street, Suite 200

  
	
   

  	
  Waltham, MA 02454

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
  Telephone: (781) 398-4202

  
	
   

  	
  Facsimile: (781) 398-9202

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  800 South Street, Suite 200

  
	
   

  	
  Waltham, Massachusetts 02454

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
  Telephone: (781) 398-4211

  
	
   

  	
  Facsimile: (781) 398-9211

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANAGER:

  
	
   

  	
   

  
	
   

  	
  ALLIANCE ENERGY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew Slifka

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Andrew Slifka

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  404 Wyman Street, Suite 425

  
	
   

  	
  Waltham, MA 02451

  
	
   

  	
  Attention: Chief Financial Officer

  
	
   

  	
  Telephone: (781) 674-7787

  
	
   

  	
  Facsimile: (781) 674-7799

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  404 Wyman Street, Suite 425

  
	
   

  	
  Waltham, MA 02451

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
  Telephone: (781) 402-8897

  
	
   

  	
  Facsimile: (781) 674-7799

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