Document:

Blueprint

 

 

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT
(this “Agreement”) is made
effective as of the 6th day of February,
2017 (the “Effective
Date”), by and between BIRCH COMMUNICATIONS, INC., a
Georgia corporation (“Company”), and
Kevin M. Dotts, a resident
of the State of Georgia (referred to herein as “You”, “Your”, or
“Yours”).

 

RECITALS

 

WHEREAS, the Company and its Affiliates
(defined below) provide communications, network, cloud, and IT
solutions to small, mid-sized, enterprise, and wholesale businesses
in the United States and Canada, offering enterprise-class cloud
hosted phone systems; data center environments with virtual and
physical solutions; and file storage solutions for confidential
data; and providing voice services, including basic phone line,
VoIP, hosted PBX, and mobile services; network Internet services,
such as broadband, Internet, and multi-protocol label switching
(MPLS) services; and information technology services, including
remote monitoring, software management, helpdesk, voice migration,
and cloud migration services; and also providing facilities-based
wholesale telecommunications services to competitive local exchange
carriers, Internet service providers, VoIP providers, and resellers
(the “Business”);

 

WHEREAS, the Company has determined
that, in view of Your professional knowledge, expertise and
experience, Your services as an executive of the Company will be of
great value to the Company and its Affiliates and, accordingly, the
Company desires to enter into this Agreement with You as set forth
herein in order to secure such services as determined by the
Company; and

 

WHEREAS, You desire to serve as an
executive of the Company on the terms and conditions set forth
herein.

 

NOW, THEREFORE, for and in consideration
of Your employment by the Company, the above premises and the
mutual agreements hereinafter set forth, You and the Company agree
as follows:

 

1. Definitions.

 

(a) ”Affiliate” means any
corporation, limited liability company, partnership, association,
joint venture or similar business entity of which (i) if a
corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers, or
trustees thereof is at the time owned or controlled, directly or
indirectly, by the Company or one or more of the other Subsidiaries
of the Company or a combination thereof, or (ii) if a limited
liability company, partnership, association, or other business
entity (other than a corporation), a majority of partnership or
other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by the Company or one or more
Subsidiaries of the Company or a combination thereof or such the
Company is the general partner or managing member of such a
partnership or limited liability company, respectively. Unless the
context suggests otherwise, all references to
“Affiliate” in this Agreement will refer to a direct or
indirect subsidiary of the Company.

 

 

1

 

 

(b) “Cause” means (i) Your
commission of any act of fraud or dishonesty with respect to the
Company, or any of its Affiliates, or any of their customers or
suppliers that is materially harmful to the Company, including to
its reputation; (ii) Your conviction of any felony; (iii) Your
reporting to work under the influence of alcohol or illegal drugs,
the use of illegal drugs (whether or not at the workplace) or other
repeated conduct which causes the Company or any of its Affiliates
substantial public disgrace or disrepute or substantial economic
harm; (iv) Your commission of one or more acts of gross negligence
or willful misconduct, after written notice to You specifying such
acts and a reasonable opportunity during a period of no fewer than
thirty (30) days to cure such acts; or (v) Your material breach of
Sections 5,
6, 7, 8 or 9 of this Agreement, after
written notice to You specifying such acts and a reasonable
opportunity during a period of no fewer than thirty (30) days to
cure such acts.

 

(c) “Change in Circumstance”
means (i) a substantial adverse alteration in the nature or status
of Your responsibilities without Your written consent, (ii) without
Your written consent, a reduction in Base Salary other than a
reduction of up to five percent (5%) generally applicable to all
similarly situated executives of the Company, (iii) without Your
written consent, relocation of the Company’s principal place
of business outside a fifty (50) mile radius of Atlanta, Georgia or
(iv) a material breach by the Company or Holdings of a material
provision of this Agreement; in the case of each of clauses (i)
through (iv), after written notice by You to the Company specifying
such acts within sixty (60) days following the occurrence thereof
and a reasonable opportunity during a period of no fewer than
thirty (30) days to cure such acts.

 

(d) “Change in Control” means
(i) the transfer of all or substantially all of the Company’s
total assets on a consolidated basis to an unaffiliated third
party; or (ii) any sale, transfer, or issuance or series of sales,
transfers and/or issuances of voting securities of the Company or
its sole shareholder, Birch Communications Holdings, Inc.
(“Holdings”) which results
in any Person or group of Persons (as the term “group”
is used under the Securities Exchange Act of 1934), other than
Holcombe T. Green, Jr., and R. Kirby Godsey, and their respective
spouses and children (and trusts therefor), and affiliates
controlled by any of them, owning, directly or indirectly, more
than 50% of such voting securities outstanding at the time of such
sale, transfer or issuance or series of sales, transfers and/or
issuances. Notwithstanding the foregoing, as to any compensation
that is subject to Code Section 409A (defined below), in no event
shall a Change in Control be deemed to occur, for purposes of this
Agreement, if it does not constitute a qualifying Change in Control
event under Code Section 409A.

 

(e) “Code” means the Internal
Revenue Code of 1986, as amended, or any successor
thereto.

 

(f) “Person” means an
individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity
or any department, agency or political subdivision
thereof.

 

(g) “Total Disability” means
Your inability, through physical or mental illness or accident, to
perform the essential functions of Your usual duties and
responsibilities hereunder (as such duties are constituted on the
date of the commencement of such disability) for a period of at
least ninety (90) consecutive days following reasonable
accommodation, all as determined by an independent medical doctor
licensed to practice medicine in the State of Georgia retained by
the Board to make such determination. Total Disability shall be
deemed to have occurred on the first day following the expiration
of such period.

 

 

 

2

 

 

2. Employment;
Duties.

 

(a) During the
Employment Period, You shall serve as the Chief Financial Officer
of the Company and shall have the normal duties, responsibilities,
functions and authority of a Chief Financial Officer, subject to
the power and authority of the Chief Executive Officer and the
Board of Directors (the “Board”) of the Company
and Holdings. During the Employment Period, You shall render such
administrative, financial and other executive and managerial
services to the Company and its Affiliates which are consistent
with Your position as a Chief Financial Officer.

 

(b) During the
Employment Period, You shall report to the Chief Executive Officer
and Board of Directors, and shall devote Your best efforts and Your
full business time and attention (except for permitted vacation
periods and reasonable periods of illness or other incapacity) to
the business and affairs of the Company and its Affiliates; You
shall perform Your duties, responsibilities and functions to the
Company and its Affiliates hereunder to the best of Your abilities
in a diligent, trustworthy, professional and efficient manner and
shall comply with the Company’s and its Affiliates’
policies and procedures in all material respects. In performing
Your duties and exercising Your authority under this Agreement, You
shall support and implement the business and strategic plans
approved from time to time by the Board. So long as You are
employed by the Company or any of its Affiliates, You shall not,
without the prior written consent of the Board, accept other
employment or perform other services for compensation other than
for the Board and its Affiliates.

 

3. Compensation.

 

(a) (1) You shall
be paid a base salary of $375,000 per year. The Board shall review
Your base salary annually during the Employment Period and, in its
sole discretion, may alter such base salary from time to time in
accordance with the terms of this Agreement after notice to You.
The annual base salary payable to You under this Section 3(a), as the same may
be adjusted from time to time, shall hereinafter be referred to as
the “Base
Salary”. The Base Salary shall accrue and be due and
payable in equal, or as nearly equal as practicable, bi-weekly
installments and the Company may deduct from each such installment
all amounts required to be deducted and withheld in accordance with
applicable federal and state income, FICA and other withholding tax
requirements.

 

(2) If the Employment
Period shall begin on other than the first business day of a pay
period and/or if the Employment Period shall terminate on other
than the last day of a pay period, Your compensation for such pay
period shall be prorated according to the number of days during
such pay period within the Employment Period.

 

(3) As of the end of
each calendar year during the Employment Period, You shall be
eligible to receive a cash bonus as determined by the Board in its
sole discretion of up to an amount equal to, at target levels of
performance, 75% of Base Salary paid during such calendar year (the
“Bonus
Payments”, and the Bonus Payment at target levels of
performance, the “Target Bonus”). The Bonus
Payment shall be based on EBITDA, cash flow, revenue and/or other
financial goals mutually agreed by the Board and the CEO. All
payments under this Section 3(a)(3) shall be
subject to all withholdings in accordance with applicable federal
and state income, FICA and other withholding tax requirements and
shall be paid in accordance with the Company’s practice for
the timing of making bonus payments to its employees, but in any
event on or prior to March 15 of the year following the year in
which the Bonus Payment relates.

 

 

 

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(4) The Company shall
reimburse You up to $5,000 for Your attorney’s fees incurred
in reaching this Agreement.

 

(5) You will also be
eligible to receive the Equity Appreciation Bonus set forth
on Exhibit C
attached hereto, in accordance with
its terms and conditions, which Holdings agrees to pay. The Company
has no obligation in respect of the Equity Appreciation
Bonus.

 

(a) While
You are performing the services described herein, the Company
shall, upon Your request, reimburse You for all reasonable and
necessary expenses incurred by You in connection with the
performance of Your duties of employment hereunder. All
reimbursements to You for expenses shall be reasonably documented
and timely submitted for reimbursement to the Company in accordance
with the Company’s normal reimbursement policies. Such
reimbursements shall be made as soon as administratively practical
following an appropriate request, provided You submit Your request
within thirty (30) days after You incur such expenses.
Notwithstanding anything to the contrary herein, in the event of a
termination of this Agreement for any reason, including for Cause,
You shall be entitled to any reimbursements accrued through Your
termination date in accordance with this paragraph.

 

(b) During the
Employment Period, You shall be eligible to participate in all
health, medical, disability and group term life insurance, and
other employee welfare benefit plans and fringe benefits of the
Company (and, to the extent applicable, Your eligible family
members and dependents) in accordance with any group plan or
program established by the Company and the terms and conditions
thereof. You shall also be eligible to participate in any qualified
and non-qualified retirement savings, defined benefit, and deferred
compensation plans that the Company sponsors for similarly situated
executives.

 

(c) You shall receive
four (4) weeks paid time off during each full twelve (12) month
period of the Employment Period.

 

4. Term;
Termination.

 

(a) The term of Your
employment under this Agreement shall commence on the Effective
Date and shall end on February 6, 2020; provided that unless
terminated pursuant to the terms and conditions of this Agreement,
this Agreement and Your employment hereunder shall be automatically
renewed on the terms and conditions set forth herein for additional
twelve (12) month periods (the “Employment Period”).
Notwithstanding the foregoing, (i) the Employment Period shall
terminate immediately upon Your resignation (with or without a
Change in Circumstance), death or Total Disability, and (ii) the
Employment Period may be terminated by the Company at any time for
Cause or without Cause. Except as otherwise provided herein, any
termination of the Employment Period shall be effective as
specified in a written notice from the Company to You. Solely for
purposes of determining Your right to compensation under
Section 4(b) below
(to the extent such compensation is subject to Code Section 409A),
You will not be considered to have terminated Your employment, and
the Employment Period will not be deemed to have terminated, unless
You have a “separation from service” within the meaning
of Code Section 409A (as defined below).

 

 

 

4

 

 

(b) If (x) the
Employment Period is terminated by the Company without Cause
(excluding, for clarity, a termination by reason of Your death or
Total Disability) or by You as a result of a Change in Circumstance
or (y) prior to the end of the Employment Period, the Company does
not offer in writing to continue Your employment following the end
of the Employment Period upon substantially the same terms as
provided in this Agreement (or as otherwise mutually agreed between
You and the Company), and You elect to resign from the Company
effective as of the end of the Employment Period, You shall be
entitled to receive Your Base Salary earned through the date of
termination or resignation, plus any accrued but unpaid Bonus
Payments and payment for any unused vacation time, and You shall be
entitled to any other salary, compensation or benefits from the
Company or its Affiliates as otherwise specifically earned and/or
vested as provided for under the Company’s employee benefit
plans, and the Company shall pay You for any reimbursable expenses
owed to You through the effective date of the termination or Your
employment. In addition:

 

(1) You shall be paid
severance pay equal to the sum of twelve (12) months of Base
Salary, such severance pay to be paid via payroll continuation over
the period of twelve (12) months following the effective date of
the termination of Your employment (the “Severance Period”), with
the payments being made on a bi-weekly basis and commencing as
provided in Section
4(b)(3), and you shall be entitled to payment or reimbursement of
all premiums for medical benefits elected by You pursuant to the
continuation of medical coverage under Section 4980B of the Code
during the Severance Period (collectively, the "Severance
Payments"); and

 

(2) You shall be
entitled to the foregoing Severance Payments if and only if (i) You
have executed and delivered to the Company a General Release
similar in form and substance as set forth in Exhibit A attached hereto and
(ii) the General Release has become effective, in each case within
60 days of Your termination of employment, and only for so long as
You have not revoked or breached the provisions of the General
Release or materially breached the provisions of Sections 5, 6, 7, 8 or 9 hereof. You shall not be
entitled any other salary, compensation or benefits after
termination of the Employment Period, except as otherwise
specifically provided for in the Company’s employee benefit
plans and in this Agreement.

 

(3) To the extent that
Severance Payments or benefits pursuant to this Agreement are
conditioned upon the execution and delivery by You of a release of
claims, You shall forfeit all rights to such payments and benefits
unless such release is signed and delivered (and no longer subject
to revocation, if applicable) within sixty (60) days following the
date of Your termination of employment. If the foregoing release is
executed and delivered and no longer subject to revocation as
provided in the preceding sentence, then the following shall
apply:

 

(i) To the extent any
such cash payment or continuing benefit to be provided is not
“deferred compensation” for purposes of Code Section
409A, then such payment or benefit shall commence upon the first
scheduled payment date immediately after the date the General
Release is executed and no longer subject to revocation (the
“Release Effective
Date”). The first such cash payment shall include
payment of all amounts that otherwise would have been due prior to
the Release Effective Date under the terms of this Agreement
applied as though such payments commenced immediately upon Your
termination of employment, and any payments made thereafter shall
continue as provided herein. The delayed benefits shall in any
event expire at the time such benefits would have expired had such
benefits commenced immediately following Your termination of
employment.

 

 

 

5

 

 

(ii) To
the extent any such cash payment or continuing benefit to be
provided is “deferred compensation” for purposes of
Code Section 409A, then such payments or benefits shall be made or
commence upon the sixtieth (60) day following Your termination of
employment. The first such cash payment shall include payment of
all amounts that otherwise would have been due prior thereto under
the terms of this Agreement had such payments commenced immediately
upon Your termination of employment, and any payments made
thereafter shall continue as provided herein. The delayed benefits
shall in any event expire at the time such benefits would have
expired had such benefits commenced immediately following Your
termination of employment.

 

(b) In the event that
(i) Your employment is terminated by the Company for Cause, (ii)
You resign without a Change in Circumstance or (iii) Your
employment is terminated by reason of Your death or Total
Disability, You shall only be entitled to receive Your Base Salary
earned through the date of termination or resignation and any
accrued but unpaid Bonus Payments as of the date of termination and
payment for any unused vacation time, and You shall not be entitled
to any other salary, compensation or benefits from the Company or
its Affiliates thereafter, except as otherwise specifically earned
and/or vested as provided for under the Company’s employee
benefit plans, and the Company shall pay You for any reimbursable
expenses owed to You through the effective date of the termination
or Your employment.

 

(c) The effective date
of the termination of Your employment with the Company is referred
to hereinbelow as the “Employment Termination
Date”.

 

5. Confidential
Information.

 

(a) Obligation to Maintain
Confidentiality. You acknowledge that the continued success
of the Company and its Affiliates depends upon the use and
protection of a large body of confidential and proprietary
information. All of such confidential and proprietary information
now existing or to be developed in the future will be referred to
in this Agreement as “Confidential Information.”
Confidential Information shall be deemed to consist of all
information of any sort (whether obtained prior to or after the
date hereof) that is (i) related to the Company’s or its
Affiliates’ (or their respective predecessors as it relates
to the Business) current or potential business and (ii) is not
generally or publicly known. Confidential Information includes,
without specific limitation, the information, observations and data
obtained by You during the course of Your employment with the
Company concerning the business and affairs of the Company and its
Affiliates (and during the course of Your employment with the
Company’s and its Affiliates’ predecessors concerning
the Business), information concerning acquisition opportunities in
or reasonably related to the Company’s or its
Affiliates’ business or industry of which You become aware
during the Employment Period, the persons or entities that are
current, former or prospective suppliers or customers of any one or
more of them during Your employment with the Company, as well as
development, transition and transformation plans, methodologies and
methods of doing business, strategic, marketing and expansion
plans, including plans regarding planned and potential customers,
financial and business plans, employee lists and telephone numbers,
new and existing programs and services, prices and terms, customer
service, integration processes, requirements and costs of providing
service, support and equipment. Therefore, You agree that You shall
not disclose to any unauthorized person or use for Your own account
any of such Confidential Information without the Board’s
prior written consent, unless and to the extent that any
Confidential Information (i) is or subsequently becomes generally
known to and available for use by the public other than as a result
of Your acts; (ii) is rightfully received by You from a third party
who, to Your knowledge, is not under a duty of confidentiality; or
(iii) is required to be disclosed pursuant to any applicable law or
court order. You agree to deliver to the Company at the end of the
Employment Period, or at any other time the Company may request in
writing, all memoranda, notes, plans, records, reports and other
documents (and copies thereof) relating to the business of the
Company or its Affiliates (including, without limitation, all
Confidential Information) that You may then possess or have under
Your control.

 

 

6

 

 

(b) Third Party Information. You
understand that the Company and its Affiliates will receive from
third parties confidential or proprietary information
(“Third Party
Information”) subject to a duty on the Company’s
and its Affiliates’ part to maintain the confidentiality of
such information and to use it only for certain limited purposes.
During the Employment Period and thereafter, and without in any way
limiting the provisions of Section 5(a) above, You will
hold Third Party Information in the strictest confidence and will
not disclose to anyone (other than personnel of the Company or its
Affiliates who need to know such information in connection with
their work for the Company or such Affiliates) or use, except in
connection with Your work for the Company or its Affiliates, Third
Party Information unless expressly authorized by a member of the
Board in writing.

 

6. Intellectual
Property, Inventions and Patents.

 

(a) You acknowledge
that all discoveries, concepts, ideas, inventions, innovations,
improvements, developments, methods, methods of doing business,
processes, programs, designs, analyses, drawings, reports, data,
software, trade secrets, firmware, logos, software, patent
applications, copyrightable work and mask work (whether or not
including any confidential information) and all registrations or
applications related thereto, all other proprietary information and
all similar or related information (whether or not patentable)
which relate to the Company’s or any of its Affiliates’
actual or anticipated business, research and development or
existing or future products or services and which are conceived,
developed, acquired, contributed to, made, or reduced to practice
by You (whether alone or jointly with others) while employed by the
Company or its predecessor and their Affiliates, whether before or
after the date of this Agreement (collectively, “Work Product”), belong to
the Company or such Affiliate. The provisions of this Section 6 will apply to Work
Product which is first reduced to practice and developed during the
Employment Period, whether or not further development or reduction
to practice may take place after termination of this
Agreement.

 

(b) You shall promptly
disclose Work Product to the Board and, at the Company’s
expense, perform all actions reasonably requested by the Board
(whether during or after the Employment Period) to establish and
confirm such ownership (including, without limitation, providing
testimony and executing assignments, consents, powers of attorney
and other instruments).

 

(c) Any copyrightable
work falling within the definition of Work Product shall be deemed
a “work made for hire” under the copyright laws of the
United States, and ownership of all rights therein shall vest in
the Company or its Affiliate. To the extent that any Work Product
is not deemed to be a “work made for hire,” You hereby
assign and agree to assign to the Company or such Affiliate all
right, title and interest, including without limitation, the
intellectual property rights that You may have in and to such Work
Product. You agree to execute any documents and take any actions
(at the Company’s expense) that may be legally required to
effect and confirm such transfer and assignment and
waiver.

 

(d) You understand,
however, that there is no obligation being imposed on You to assign
to the Company or any Affiliate, any invention falling within the
definition of Work Product for which no equipment, supplies,
facility, or trade secret information of the Company or any of its
Affiliates (or any of their predecessors) was used and that was
developed entirely on Your own time, unless: (i) such Work Product
relates to the Company’s, or its Affiliates’ businesses
or their actual or demonstrably anticipated research or
development, or (ii) the Work Product results from any work
performed by You for the Company, or its Affiliates under this
Agreement.

 

 

 

7

 

 

(e) You have identified
and listed on Exhibit
B all Work Product that is or was owned by You or was
written, discovered, made, conceived or first reduced to practice
by You alone or jointly with another person prior to Your
employment under this Agreement and with the Company’s and
its Affiliates’ predecessors. If no such Work Product is
listed, You represent to the Company that You do not now nor have
You ever owned, nor have You made, any such Work
Product.

 

7. Non-Competition.
In further consideration of the compensation to be paid to You
hereunder, You acknowledge that during the course of Your
employment with the Company and its Affiliates You will become
familiar with the Company’s and its Affiliates’ trade
secrets and with other Confidential Information concerning the
Company and its Affiliates and that Your services shall be of
special, unique and extraordinary value to the Company and its
Affiliates, and therefore, in further consideration of the
compensation to be paid to You hereunder, You agree that during
Your employment with the Company or any of its Affiliates and for a
period of twelve (12) months after termination of Your employment
with the Company and its Affiliates for any reason, You shall not,
directly or indirectly, within the Territory (as defined below),
provide Services (as defined below) to or for the benefit of any
Person (including You) which is at the time engaged in the
Business. As used herein, the “Territory” shall mean
the United States and “Services” shall mean services
provided by You to the Company or any of its Affiliates during the
one year period immediately preceding the termination of Your
employment with the Company.

 

8. Customer
Non-Solicitation. You agree that during Your employment with
the Company and for a period of twelve (12) months after
termination of Your employment with the Company for any reason, You
will not directly or indirectly on Your own behalf or on behalf of
any other Person, except on behalf of the Company, (i) solicit or
call upon any customer or client or Prospective Customer (as
defined below) of the Company or any of its Affiliates with a view
to providing to such customer or Prospective Customer the services
provided by the Company and its Affiliates in connection with the
Business; provided,
however, that the
restrictions set forth in this clause (i) shall apply only to
customers or Prospective Customers of the Company and its
Affiliates with whom You had Material Contact (as defined below)
during the twelve (12)-month period immediately preceding the
termination of Your employment with the Company and its Affiliates,
or (ii) induce or attempt to induce any customer or licensee of the
Company or any of its Affiliates to cease doing business with the
Company or such Affiliate (including, without limitation, by making
any negative or disparaging statements or communications regarding
the Company or its Affiliates). As used herein, “Prospective
Customer” shall mean any Person to whom the Company or any of
its Affiliates has sent or delivered a written servicing proposal
or contract in connection with the Business of the Company and its
Affiliates, and “Material Contact” shall mean contact
between You and each customer or Prospective Customer (A) with whom
You dealt; (B) whose dealings with the Company were coordinated or
supervised by You; or (C) about whom You obtained Confidential
Information in the ordinary course of business as a result of Your
association with the Company.

 

9. Employee
Non-Solicitation. You agree that during Your employment with
the Company and for a period of twelve (12) months after
termination of Your employment with the Company for any reason, You
will not directly or indirectly through another person or entity,
except on behalf of the Company, recruit, hire or attempt to
recruit or hire, directly or by assisting others, any other person
who was an employee of the Company or any of its Affiliates within
the two-year period prior to Your termination of employment or is
an employee of the Company or any of its Affiliates following Your
termination of employment, or otherwise induce or attempt to induce
any employee of the Company or any Affiliate to leave the employ of
the Company or such Affiliate or in any way interfere with the
relationship between the Company or any Affiliate and any employee
thereof.

 

 

 

8

 

 

10. Termination
of Restrictive Covenants. In the event of a winding-up,
dissolution or general cessation of business by the Company, or the
Company’s failure to make the severance payments provided
under Section 4(b)
hereunder which continues uncured for more than 90 days, the
covenants set forth in Sections 7, 8 and 9 shall automatically
terminate.

 

11. Enforcement.
If, at the time of enforcement of Sections 5, 6, 7, 8 or 9 of this Agreement, a court
holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the
maximum period, scope or geographical area reasonable under such
circumstances shall be substituted for the stated period, scope or
area and that the court shall be allowed to revise the restrictions
contained herein to cover the maximum period, scope and area
permitted by law. You agree that the covenants contained in
Sections 5,
6, 7, 8 and 9 are of the essence of this
Agreement; that each of the covenants is reasonable and necessary
to protect the business, interest and properties of the Company;
and that irreparable loss and damage will be suffered by the
Company should You breach any of the covenants. Therefore, You
agree that in addition to all other remedies provided by law or in
equity, the Company and its Affiliates or their successors and
assigns shall be entitled to a temporary restraining order and
temporary and permanent injunction to prevent a breach or
contemplated breach of any of the covenants (without posting a bond
or other security). In addition, in the event of a breach or
violation by You of Section 7, the time period set
forth therein shall be automatically extended by the amount of time
between the initial occurrence of the breach or violation and when
such breach or violation has been duly cured. You acknowledge that
the restrictions contained in Section 7 are reasonable and
that You have reviewed the provisions of this Agreement with Your
legal counsel.

 

12. Additional
Acknowledgments. You acknowledge that the provisions of
Sections 5,
6, 7, 8 or 9 are in consideration of: (i)
employment with the Company, and (ii) additional good and valuable
consideration as set forth in this Agreement. In addition, You
agree and acknowledge that the restrictions contained in
Sections 5,
6, 7, 8 or 9 do not preclude You from
earning a livelihood, nor do they unreasonably impose limitations
on Your ability to earn a living. In addition, You acknowledge (i)
that the business of the Company and its Affiliates may be national
in scope, (ii) notwithstanding the state of incorporation or
principal office of the Company or residence of any of its
respective employees (including You), it is expected that the
Company and its Affiliates will have business activities and have
valuable business relationships within its industry throughout the
United States. You agree and acknowledge that the potential harm to
the Company and its Affiliates of the non-enforcement of
Sections 5,
6, 7, 8 or 9 outweighs any potential harm
to You of its enforcement by injunction or otherwise. You
acknowledge that You have carefully read this Agreement and have
given careful consideration to the restraints imposed upon You by
this Agreement, and are in full accord as to their necessity for
the reasonable and proper protection of confidential and
proprietary information and relationships of the Company and its
Affiliates now existing or to be developed in the future. You
expressly acknowledge and agree that each and every restraint
imposed by this Agreement is reasonable with respect to subject
matter, time period and geographical area.

 

 

 

9

 

 

13. Representations.
You hereby represent and warrant to the Company that (i) the
execution, delivery and performance of this Agreement by You does
not and shall not conflict with, breach, violate or cause a default
under any contract, agreement, instrument, order, judgment or
decree to which You are a party or by which You are bound, (ii) You
are not a party to or bound by any employment agreement with any
other person or entity or any noncompete agreement or
confidentiality agreement that are violated by the execution of and
performance under this agreement and (iii) upon the execution and
delivery of this Agreement by the Company, this Agreement shall be
Your valid and binding obligation, enforceable against You in
accordance with its terms. You hereby acknowledge and represent
that You have consulted with independent legal counsel regarding
Your rights and obligations under this Agreement and that You fully
understand the terms and conditions contained herein.

 

14. Corporate
Opportunity. During the Employment Period, You shall submit
to the Board all business, commercial and investment opportunities
or offers presented to You or of which You become aware which
relate to the Business at any time during the Employment Period
(“Corporate
Opportunities”). Unless approved by the Board, You
shall not accept or pursue, directly or indirectly, any Corporate
Opportunities on Your own behalf.

 

15. Cooperation.
During the Employment Period and thereafter during the Severance
Period, You agree to cooperate with the Company and its Affiliates
in any internal investigation, any administrative, regulatory or
judicial investigation or proceeding or any dispute with a third
party as reasonably requested by the Company (including, without
limitation, being available to the Company upon reasonable notice
for interviews and factual investigations, appearing at the
Company’s request to give testimony without requiring service
of a subpoena or other legal process, volunteering to the Company
all pertinent information and turning over to the Company all
relevant documents which are or may come into Your possession, all
at times and on schedules that are not disruptive of Your other
permitted activities and commitments, which may include full-time
employment to a future employer). In the event the Company requires
Your cooperation in accordance with this Section 15, the Company shall
reimburse You solely for reasonable expenses (including lodging and
meals) upon submission of receipts, and, to the extent such
cooperation requires a commitment of greater than five (5) hours
per week, You shall be paid a per diem rate equal to one day of
Base Salary for each day on which cooperation is
requested.

 

16. Survival.
Sections 1,
4 through
13 and 15 through 24, inclusive, shall survive
and continue in full force in accordance with their terms
notwithstanding the expiration or termination of the Employment
Period.

 

17. Severability.
In case any one or more of the provisions of this Agreement shall
for any reason be held to be invalid, illegal or unenforceable in
any respect by a court of competent jurisdiction, the validity of
the remaining covenants set forth herein shall not be affected
thereby.

 

18. Assignment.
This Agreement is intended to bind and inure to the benefit of and
be enforceable by the parties hereto and their respective heirs,
successors and assigns, except that You may not assign Your rights
or delegate Your duties or obligations hereunder without the prior
written consent of Holdings.

 

 

 

10

 

 

19. Notices.
Except as otherwise specifically provided herein, any notice
required or permitted to be given to You pursuant to this Agreement
shall be given in writing, and personally delivered or mailed to
You by certified mail, return receipt requested, at the address set
forth below Your signature on this Agreement or at such other
address as You shall designate by written notice to the Company
given in accordance with this Section 19, and any notice
required or permitted to be given to the Company shall be given in
writing, and personally delivered or mailed to the Company by
certified mail, return receipt requested, addressed to the Company
at the address set forth under the signature of the Company or at
such other address as the Company shall designate by written notice
to You given in accordance with this Section 19. Any notice
complying with this Section 19 shall be deemed
received when personally delivered or mailed to the
addressee.

 

20. Waiver.
The waiver by either party hereto of any breach of this Agreement
by the other party hereto shall not be effective unless in writing,
and no such waiver shall operate or be construed as the waiver of
the same or another breach on a subsequent occasion.

 

21. Governing
Law. This Agreement and the rights of the parties hereunder
shall be governed by and construed in accordance with the internal
laws of the State of Georgia without regard to its principles of
conflicts of laws. You and the Company agree that any action or
proceeding in connection with this Agreement shall be brought
exclusively in a state or federal court sitting in or for Fulton
County, Georgia. In any action or proceeding brought with respect
to or in connection with this Agreement, You and the Company hereby
irrevocably agree to submit to the jurisdiction and venue of the
federal and state courts sitting in or for Fulton, County,
Georgia.

 

22. Beneficiary.
The covenants, terms, and provisions set forth in this Agreement
shall inure to the benefit of and be enforceable by You, Your
heirs, and legal representatives and by the Company and its
permitted successors, assigns, and successors-in-interest,
including, without limitation, any corporation, partnership, or
other entity with which the Company may be merged. The Company
shall require any such successor to expressly acknowledge and agree
in writing to assume the Company’s obligations hereunder.
Except as expressly set forth herein, nothing expressed or implied
in this Agreement is intended to confer, nor anything herein shall
confer, upon any person other than the parties hereto any rights,
remedies, obligations or liabilities whatsoever. Any payment that
You are owed under this Agreement at the time of Your death shall
be paid in accordance with the terms of this Agreement to Your
estate.

 

23. Entire
Agreement. This Agreement embodies the entire agreement of
the parties hereto relating to Your employment by the Company in
the capacity herein stated and, except as specifically provided
herein, no provisions of any employee manual, personnel policies,
Company directives or other agreement or document shall be deemed
to modify the terms of this Agreement. No amendment or modification
of this Agreement shall be valid or binding upon You or the Company
unless made in writing and signed by the parties hereto. All prior
understandings and agreements relating to Your employment by the
Company, in whatever capacity, are hereby expressly terminated. The
parties have participated jointly in the negotiation and drafting
of this Agreement. If an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if
drafted jointly by the parties and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of
the authorship of any of the provisions of this
Agreement.

 

 

 

11

 

 

24. Time
of the Essence. Time is of the essence of this Agreement and
each of the provisions hereof.

 

25. Indemnification.
With respect to Your services as a director and officer of the
Company and any of its Affiliates, the Company shall
indemnify You and hold You harmless to the fullest extent permitted
under the Company’s articles of organization and Delaware law
from and against any expenses,
including legal fees, and all judgments, fines and amounts paid in
settlement and reasonably incurred in connection with legal,
administrative or investigative proceedings to which You are made,
or threatened to be made, a party by reason of the fact You are or
were a director or officer of the Company. In addition, if
the Company or any of its Affiliates maintains director or officer
indemnity insurance, You will be covered and insured under such
policy to the same extent as similarly situated officers and
directors.

 

26. Section
409A Compliance.

 

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

 

(b) For purposes of
compliance with Code Section 409A, (i) all expenses or other
reimbursements under this Agreement shall be made on or prior to
the last day of the taxable year following the taxable year in
which such expenses were incurred by You, (ii) any right to
reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit, and (iii) no such reimbursement,
expenses eligible for reimbursement, or in-kind benefits provided
in any taxable year shall in any way affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other
taxable year.

 

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

 

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

 

[Signature Page Follows]

 

 

12

 

 

IN WITNESS WHEREOF, You and the Company
have executed and delivered this Agreement effective as of the date
first shown above.

 

THE COMPANY:     YOU, THE EXECUTIVE:

 

	

Birch Communications, Inc.

 

By:
/s/ Anthony A.
Tomae  

Name:
Anthony A. Tomae   

Title:
President and CEO

	

 

By: 
/s/ Kevin M.
Dotts 

            
Kevin M. Dotts

 

For purposes of its agreement under Section 3(a)(4)
only,

 

Holdings executes this Agreement below:

 

HOLDINGS:

 

Birch Communications Holdings, Inc.

 

By:
/s/ R. Kirby
Godsey

      Name:
R. Kirby Godsey

 

 

 

13

 

 

Exhibit A

 

GENERAL RELEASE

 

 

 

I,
______________, in consideration of and subject to the performance
by Birch Communications, Inc., a Georgia corporation (together with
its affiliates, the “Company”), of its
obligations under the Executive Employment Agreement, dated as of
(the “Agreement”), do hereby
release and forever discharge as of the date hereof the Company and
its affiliates and all present and former directors, officers,
agents, representatives, employees, successors and assigns of the
Company and its affiliates and the Company’s direct or
indirect owners (collectively, the “Released Parties”) to the
extent provided below.

 

1.

I understand that
any payments or benefits paid or granted to me under Section 4(b)
of the Agreement represent, in part, consideration for signing this
General Release and are not salary, wages or benefits to which I
was already entitled. I understand and agree that I will not
receive the payments and benefits specified in Section 4(b) of the
Agreement unless I execute this General Release and do not revoke
this General Release within the time period permitted hereafter or
breach this General Release. I also acknowledge and represent that
I have received all payments and benefits that I am entitled to
receive (as of the date hereof) by virtue of any employment by the
Company.

 

2.

Except as provided
in paragraph 4 below and except for the provisions of the Agreement
which expressly survive the termination of my employment with the
Company, I knowingly and voluntarily (for myself, my heirs,
executors, administrators and assigns) release and forever
discharge the Company and the other Released Parties from any and
all claims, suits, controversies, actions, causes of action,
cross-claims, counter-claims, demands, debts, compensatory damages,
liquidated damages, punitive or exemplary damages, other damages,
claims for costs and attorneys’ fees, or liabilities of any
nature whatsoever in law and in equity, both past and present
(through the date this General Release becomes effective and
enforceable) against the Company or any of the Released Parties
which I, my spouse, or any of my heirs, executors, administrators
or assigns, may have, to the extent that I have knowledge or could
reasonably be expected to have knowledge of such matter or the
facts giving rise to such matter, and which arise out of or are
connected with my employment with, or my separation or termination
from, the Company (including, but not limited to, any allegation,
claim or violation, arising under: Title VII of the Civil Rights
Act of 1964, as amended; the Civil Rights Act of 1991; the Age
Discrimination in Employment Act of 1967, as amended (including the
Older Workers Benefit Protection Act); the Equal Pay Act of 1963,
as amended; the Americans with Disabilities Act of 1990; the Family
and Medical Leave Act of 1993; the Worker Adjustment Retraining and
Notification Act; any applicable Executive Order Programs; the Fair
Labor Standards Act; or their state or local counterparts; or under
any other federal, state or local civil or human rights law, or
under any other local, state, or federal law, regulation or
ordinance; or under any public policy, contract or tort, or under
common law; or arising under any policies, practices or procedures
of the Company; or any claim for wrongful discharge, breach of
contract, infliction of emotional distress, defamation; or any
claim for costs, fees, or other expenses, including
attorneys’ fees incurred in these matters) (all of the
foregoing collectively referred to herein as the
“Claims”).

 

 

 

14

 

 

 

 

3.

I represent that I
have made no assignment or transfer of any right, claim, demand,
cause of action, or other matter covered by paragraph 2
above.

 

4.

I agree that this
General Release does not waive or release any rights or claims that
I may have under the Age Discrimination in Employment Act of 1967
which arise after the date I execute this General Release. I
acknowledge and agree that my separation from employment with the
Company in compliance with the terms of the Agreement shall not
serve as the basis for any claim or action (including, without
limitation, any claim under the Age Discrimination in Employment
Act of 1967).

 

5.

In signing this
General Release, I acknowledge and intend that it shall be
effective as a bar to each and every one of the Claims hereinabove
mentioned or implied. I expressly consent that this General Release
shall be given full force and effect according to each and all of
its express terms and provisions. I acknowledge and agree that this
waiver is an essential and material term of this General Release
and that without such waiver the Company would not have agreed to
the terms of the Agreement. I further agree that in the event I
should bring a Claim seeking damages against the Company, or in the
event I should seek to recover against the Company in any Claim
brought by a governmental agency on my behalf, this General Release
shall serve as a complete defense to such Claims. I further agree
that I am not aware of any pending claim of the type described in
paragraph 2 as of the execution of this General
Release.

 

6.

I agree that
neither this General Release, nor the furnishing of the
consideration for this General Release, shall be deemed or
construed at any time to be an admission by the Company, any
Released Party or myself of any improper or unlawful
conduct.

 

7.

I agree that I will
forfeit all amounts payable by the Company pursuant to the
Agreement if I challenge the validity of this General Release. I
also agree that if I violate this General Release by suing the
Company or the other Released Parties.

 

8.

I agree that this
General Release and the Agreement are confidential and agree not to
disclose any information regarding the terms of this General
Release or the Agreement, except to my immediate family and any
tax, legal or other counsel I have consulted regarding the meaning
or effect hereof or as required by law, and I will instruct each of
the foregoing not to disclose the same to anyone.

 

9.

I agree to
reasonably cooperate with the Company in any internal
investigation, any administrative, regulatory, or judicial
proceeding or any dispute with a third party. I understand and
agree that my cooperation may include, but not be limited to,
making myself available to the Company upon reasonable notice for
interviews and factual investigations; appearing at the
Company’s request to give testimony without requiring service
of a subpoena or other legal process; volunteering to the Company
pertinent information; and turning over to the Company all relevant
documents which are or may come into my possession all at times and
on schedules that are reasonably consistent with my other permitted
activities and commitments. I understand that in the event the
Company asks for my cooperation in accordance with this provision,
the Company will reimburse me solely for reasonable travel
expenses, (including lodging and meals), upon my submission of
receipts.

 

 

 

15

 

 

10.

I agree that as of
the date hereof, I have returned to the Company any and all
property, tangible or intangible, relating to its business, which I
possessed or had control over at any time (including, but not
limited to, company-provided credit cards, building or office
access cards, keys, computer equipment, manuals, files, documents,
records, software, customer data base and other data) and that I
shall not retain any copies, compilations, extracts, excerpts,
summaries or other notes of any such manuals, files, documents,
records, software, customer data base or other data.

 

11.

Notwithstanding
anything in this General Release to the contrary, this General
Release shall not relinquish, diminish, or in any way affect any
rights or claims arising out of any breach by the Company or by any
Released Party of the Agreement after the date hereof.

 

12.

Whenever possible,
each provision of this General Release shall be interpreted in,
such manner as to be effective and valid under applicable law, but
if any provision of this General Release is held to be invalid,
illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other
jurisdiction, but this General Release shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained
herein.

 

BY
SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE
THAT:

 

1.

I HAVE READ IT
CAREFULLY;

 

2.

I UNDERSTAND ALL OF
ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING
BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN
EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS
ACT OF 1964, AS AMENDED; AND THE EQUAL PAY ACT OF 1963, THE
AMERICANS WITH DISABILITIES ACT OF 1990;;

 

3.

I VOLUNTARILY
CONSENT TO EVERYTHING IN IT;

 

4.

I HAVE BEEN ADVISED
TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO
OR, AFTER CAREFUL READING AND CONSIDERATION I HAVE CHOSEN NOT TO DO
SO OF MY OWN VOLITION;

 

5.

I HAVE HAD AT LEAST
21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE SUBSTANTIALLY
IN ITS FINAL FORM ON _____________, _____TO CONSIDER IT AND THE
CHANGES MADE SINCE THE __________,_____ VERSION OF THIS RELEASE ARE
NOT MATERIAL AND WILL NOT RESTART THE REQUIRED 21-DAY
PERIOD;

 

6.

THE CHANGES TO THE
AGREEMENT SINCE ______________ ___, _____ EITHER ARE NOT MATERIAL
OR WERE MADE AT MY REQUEST.

 

 

 

16

 

 

7.

I UNDERSTAND THAT I
HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT
AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE
UNTIL THE REVOCATION PERIOD HAS EXPIRED;

 

8.

I HAVE SIGNED THIS
GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF
ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT;
AND

 

9.

I AGREE THAT THE
PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED,
CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN
AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

 

 

DATE:          

 

Exhibit B

WORK PRODUCT

 

 

None

 

 

 

 

 

17

 

 

Exhibit C

 

EQUITY APPRECIATION BONUS

 

(a) Subject to the
terms and conditions of this Exhibit C, a cash bonus,
in the amount computed as set forth below, shall become payable to
Executive by Holdings in reference to the value of the equity of
Holdings subject to the further terms set forth below
(“Equity
Appreciation Bonus”) on the sooner occur of (x) a
Change in Control, or (y) February 6, 2021
(“Scheduled Bonus
Date”).

 

(b)  As used
herein, “Vesting
Percentage” means as follows :

 

(i) 0% if the
Employment Termination Date is prior to February 6,
2019;

 

(ii) 25%
if the Employment Termination Date is on or after February 6, 2019,
but prior to February 6, 2020;

 

(iii) 50%
if the Employment Termination Date is on or after February 6, 2020,
but prior to February 6, 2021;

 

(iv) 100%
if the Employment Termination Date is not prior to February 6,
2021;

 

 

provided, however, the Vesting
Percentage shall be increased (as applicable):

 

 

(x) to
100% if the Equity Appreciation Bonus is being paid in reference to
a Change in Control which occurs prior to or on the Employment
Termination Date; or

 

 

(y) in
the event that Your employment terminates prior to February 6, 2021
(x) by the Company without Cause, (y) by You as a result of a
Change in Circumstances or (z) by reason of Your death or Total
Disability, to the Vesting Percentage that would have been attained
if Your employment had continued until the first anniversary of the
Employment Termination Date.

 

(c) The value of the
equity of Holdings upon which the Equity Appreciation Bonus shall
be computed hereunder (the “Holdings Equity Value”),
subject to the proviso below, shall equal, in the case of the
Equity Appreciation Bonus paid by reason of a Change in Control
which occurs prior to or on the Employment Termination Date, the
value of the equity of Holdings implied by the Change in Control
transaction. Otherwise, the Holdings Equity Value shall be computed
by Deloitte Transactions and Business Analytics LLP (or another
independent agent mutually agreed) (the “Valuation Firm”), subject
to verification by Executive, employing the same methodology as
used by Deloitte Transactions and Business Analytics LLP in its
valuation of the equity of Holdings computed as of December 31,
2015 in its report dated March 17, 2016 to compute the value of
Holdings’ equity (before the application of any discounts) of
$273,210,000 (the “2015 Report”), although
using financial data in reference to the Company, and otherwise, as
of the end of the calendar month immediately preceding the Bonus
Date. Provided however, the
Holdings Equity Value shall be decreased on a dollar-for-dollar
basis to account for any capital contribution of cash or any asset,
or the acquisition of any asset, including any business, to the
extent (only) that additional equity of Holdings is issued
therefor, with non-cash contributions in each case valued at the
time of any such contribution or acquisition. For clarity and
avoidance of doubt, You and Holdings agree as follows with respect
to such valuation: (1) that You shall be permitted to discuss the
components of the valuation with the Valuation Firm and to review
and comment on the valuation before it is finalized; (2) that the
weighting of the data in the valuation shall be the same as
reflected in the 2015 Report (including, without limitation, 50% to
the Discounted Cash Flow method, 30% to the Guideline Public
Company method and 20% to the Guideline Transaction method); (3)
that the Valuation Firm shall have discretion to change the
guideline companies and the EBITDA multiple(s) used in the report
(it being understood that, in all cases, the determination of the
Valuation Firm shall, absent manifest error, be final, binding and
conclusive); and (4) that, in the event that there shall be created
a New Holding Company, the calculations set forth herein shall be
of the value of the equity of New Holding Company, not Holdings,
and will include the assets and liabilities of such New Holding
Company and its Affiliates, including without limitation the assets
and liabilities of Holdings and of the Company and its direct and
indirect subsidiaries.

 

 

 

18

 

 

 

(d) The Equity
Appreciation Bonus shall equal the Vesting Percentage multiplied
times the bonus dollar sum applicable below:

 

Holdings Equity
Value

equal
or exceeding but less than

succeeding
sum

(dollars in
millions)

 

	

Equity
Base Value (EBV)

	

Percent
earned

	

Cumulative
Earned Equity Bonus

	

EBV +
$40

	

1%

	

$400,000

	

EBV +
$80

	

1%

	

$800.000

	

EBV +
$120

	

1%

	

$1.2
million

	

EBV +
$160

	

1%

	

$1.6
million

	

EBV +
$200

	

1%

	

$2.0
million

	

EBV +
$240

	

1.5%

	

$2.6
million

	

EBV +
$280

	

1.5%

	

$3.2
million

	

EBV +
$320

	

1.5%

	

$3.8
million

	

Each
succeeding level - equals prior level succeeding level plus
$40

	

1.5%

	

plus
$600,000

 

Provided, should the Holdings Equity
Value exceed the EBV but fall in between any of the value levels
specified above, then the amount of the Equity Appreciation Bonus
will equal the amount indicated for the level achieved plus a pro
rated amount of the additional bonus amount ($1 million or $1.5
million, as the case may be) obtainable at the next highest value
level. For example, if the Holdings Equity Value is EBV + $20
million, the Equity Appreciation Bonus will be $1.5 million, and if
EBV + $130 million, it will be $4.25 million.

 

As used
herein, EBV means the value of the equity of Holdings which was
computed by Deloitte Transactions and Business Analytics LLP as of
December 31, 2015, which was dated March 17,2016.

 

 

19

 

 

 

(e) The Equity
Appreciation Bonus shall be payable, in the case of a Change in
Control, coincident with the closing of such transaction, except as
provided in the following section. If a portion of the
consideration in respect of a Change in Control is contingent or
escrowed, to the extent permitted by Treas. Reg.
§ 1.409A-3(i)(5)(iv), the payment of the Equity
Appreciation Bonus shall be on the same schedule and under the same
terms and conditions as apply to shareholders generally, provided
that such payment of the Equity Appreciation Bonus will be made no
later than five (5) years after the Change in Control.

 

(f) If the Equity
Appreciation Bonus is payable in reference to the Scheduled Bonus
Date, and not in respect of the occurrence of a Change in Control,
it shall be paid in six (6) equal quarterly installments, payable
on the last day of each calendar quarter, during the eighteen (18)
months beginning with the first calendar quarter succeeding the
Scheduled Bonus Date. In addition, all unpaid installments and
other sums due in respect of the Equity Appreciation Bonus payable
in reference to the Scheduled Bonus Date shall be paid upon the
subsequent occurrence of a Change in Control. In the event of Your
death following the Change in Control but prior to conclusion of
Equity Bonus quarterly payments, remaining payments shall be made
to Your designated beneficiary or to Your estate.

 

(g) The provisions of
this Exhibit C
shall survive any termination of employment of Executive (including
bv reason of death) or termination of this Agreement, subject to
the particular terms and conditions of this Exhibit C.

 

 

 

20Exhibit 10.3

 

2018 Compensation Information for Registrant’s Executive Officers

 

The table below provides information regarding (i) the base salary of each executive officer of GTx, Inc. (the “Company”), effective as of January 1, 2018 and (ii) the target cash bonus award for Fiscal 2018 for each of the Company’s executive officers under the Company’s Executive Bonus Compensation Plan, expressed as a percentage of applicable base salary:

 

	
Executive Officer
    	
 
    	
Title
    	
 
    	
2018 Annual
   Base Salary
   ($)
    	
 
    	
2018 Target
   Bonus
   (%)
    	
 
    
	
Marc S. Hanover
    	
 
    	
Chief Executive Officer
    	
 
    	
445,628
    	
 
    	
65
    	
%
    
	
Robert J. Wills
    	
 
    	
Executive Chairman of the Board
    	
 
    	
226,600
    	
 
    	
65
    	
%
    
	
Henry P.   Doggrell
    	
 
    	
Vice President, Chief Legal Officer and Secretary
    	
 
    	
389,463
    	
 
    	
35
    	
%
    
	
Diane C. Young
    	
 
    	
Vice President, Chief Medical Officer
    	
 
    	
183,855
    	
 
    	
35
    	
%
    
	
Jason T.   Shackelford
    	
 
    	
Vice President, Finance and Accounting and principal   financing and accounting officer
    	
 
    	
237,930
    	
 
    	
35
    	
%

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