Document:

October
10, 2016

 

This
agreement is made between:

 

XFit
Brands, Inc (hereinafter referred to as the “Corporation”) of the first part

 

-
and -

 

James
Bateman of the City of Madison in the State of Mississippi (hereafter referred to as the “Executive”) of the second
part

 

Whereas
the Corporation has determined to employ James Bateman as President - Sports and member of the Board of Directors of the
Corporation effective as of the Employment Commencement Date (as defined below), reporting to the Chief Executive Officer of the
Corporation; and

 

Whereas
the Corporation and the Executive have agreed to enter into this Employment Agreement (hereinafter referred to as the “Agreement”)
to formalize in writing the terms and conditions reached between them governing the Executive’s employment and agreement
with the Company;

 

Now,
therefore, in consideration of the covenants and agreements herein contained and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto, intending to be legally bound, agree
as follows:

 

COMMENCEMENT
AND TERM

 

The
term of the Executive’s employment under this Agreement commences immediately following the closing of the Asset Purchase
Agreement of even date herewith between the Corporation and Environmental Turf Services, LLC (the “Employment Commencement
Date”) and shall continue until June 30, 2019 unless terminated pursuant to this Agreement as herein provided. This Agreement
shall renew thereafter on an annual basis beginning July 1, 2019 and for every successive year thereafter unless the parties invoke
the provisions herein provided. Either Party shall provide written notice to the other Party if the former elects not to renew
this Agreement, however, the exercising Party shall provide said written notice on or before 60 (sixty) days prior to the commencement
of the renewal period.

 

EMPLOYMENT

 

Subject
to the terms and conditions hereof, the Executive shall be employed by the Corporation as President – Sports effective as
of the above date and shall perform such duties and exercise such powers and responsibilities as are typically associated with
such title.

 

The
Executive agrees to dedicate 100% of his available time and attention to the business and affairs of the Corporation and to discharge
the responsibilities assigned to the Executive. Anything herein to the contrary notwithstanding, nothing shall preclude the Executive
from (i) serving, as a director/officer/advisor of non-competing businesses, (ii) serving on the boards of directors/ advisors
of one or more non-competing business, trade associations and/or charitable organizations, (iii) engaging in charitable activities
and community affairs, and (iv) managing his personal investments and affairs.

 

    	 	 	 

    	 		 

    

 

 

REMUNERATION

 

Base
Salary. During the first calendar year of employment, the Corporation shall pay the Executive a base salary (the “Base
Salary”) payable monthly in arrears. The Base Salary shall be $72,000 per year and begin immediately upon the Employment
Commencement Date.

 

Bonus.
The Corporation shall pay the Executive a performance bonus (the “Bonus”) equivalent to $0.05 (five cents) per
square foot of surface placements (the “EnviroTurf Business”), immediately upon completion of any install. The Corporation
shall also pay to the Executive 2% of Net Sales (defined as Gross Sales less Discounts) directly generated by the Executive on
the sale of any other product in the XFit Brand Portfolio. The Corporation shall also pay to the Executive any equity bonus (the
“Equity Kicker”) equivalent to 100,000 shares of common stock or share-based equivalents (subject to adjustments for
share splits and recapitalizations) for each $5,000,000 in Net Sales of the EnviroTurf business achieved.

 

Equity
Incentive. The Executive will be provided an equity incentive of 1,000,000 shares of Common Stock of the Corporation following
the successful sales and collection of $5,000,000 in in Net Sales in the EnviroTurf Business. In an effort to support the Executive’s
ability to achieve this Equity Incentive, the Corporation agrees to fund the EnviroTurf Business with $500,000 within 75 days
of the Employment Commencement Date in accordance with the Use of Proceeds provided to the Executive concurrent with the execution
of this Agreement.

 

Benefits.
The Executive shall be entitled to participate in all of the Corporation’s benefit plans made generally available to
the employees and senior executives of the Corporation, in accordance with the terms of such plans including participation in
XFit Brands Medical, Dental and other Health programs. The Executive’s participation in the Corporation’s benefit
plan is subject to the terms, conditions and limitations contained in the applicable benefit plan documents. All forms of compensation
and benefits are subject to applicable reductions to reflect statutory withholdings for federal, state, and local payroll taxes.
Additional benefits are outlined in the Employee Handbook, a copy of which you will be given upon commencement of employment.

 

Vacation.
The Executive shall be entitled to (3) three weeks vacation with pay annually. Such vacation shall be taken at a time acceptable
to the Corporation with regard to its operations.

 

Expenses.
Consistent with its corporate policies as established from time to time, the Corporation agrees to reimburse the Executive
for all expenses reasonably incurred in connection with the performance of his duties upon being provided with proper vouchers
or receipts.

 

Taxes.
The Executive shall be responsible to pay for all federal, state, provincial and local taxes assessed on any income received
from the Executive under this Agreement, which are over and above the amounts that may be deducted and remitted on the Executive’s
behalf by the Company.

 

Performance
Equity Incentive. The Executive shall be 100% eligible to participate in any ESOP programs consistent with the C-level annual
equity compensation or incentives.

 

    	 	 	 

    	 		 

    

 

 

COVENANTS
OF THE PARTIES

 

The
Executive acknowledges that in the course of carrying out, performing and fulfilling his obligations to the Corporation hereunder,
the Executive will have access to and will be entrusted with information that would reasonably be considered confidential to the
Corporation, the disclosure of which to competitors of the Corporation or to the general public will be highly detrimental to
the best interests of the Corporation. Except as may be required in the course of carrying out his duties hereunder, the Executive
covenants and agrees that he will not disclose, for the duration of this Agreement any such information to any person, other than
to the directors, officers, employees or agents of the Corporation that have a need to know such information, nor shall the Executive
use or exploit, directly or indirectly, such information for any purpose other than for the purposes of the Corporation, nor will
he disclose nor use for any purpose, other than for those of the Corporation, any other information which he may during his employment
with respect to the business and affairs of the Corporation or otherwise.

 

The
Executive acknowledges and agrees that all right, title and interest in and to any information, trade secrets, advances, discoveries,
improvements, research materials and data bases made or conceived by the Executive during his employment relating to the business
or affairs of the Corporation, shall belong to the Corporation. Any business opportunities related to the business of the Corporation
which become known to the Executive during his employment hereunder must be fully disclosed and made available to the Corporation
by the Executive, and the Executive agrees not to take or attempt to take any action if the result would be to divert from the
Corporation any opportunity which is within the scope of its business.

 

The
Executive will not at any time, without the prior written consent of the Corporation, during the Term of this Agreement and after
the expiration or termination of the Executive’s employment so long as Executive is receiving bargained for consideration
which is defined as Base Salary plus any annual incentives, either individually or in partnership, jointly or in conjunction with
any person or persons, firm, association, syndicate, company or corporation, directly or indirectly engage in, carry on or otherwise
have any interest in, advise, or permit the Executive’s name to be used in connection with, any business which is directly
competitive to the Business, or which provides generally the same services as the Business; or solicit, interfere with, accept
any business from or render any services to anyone whom Executive knows or should have reason to know is a client or a prospective
client of the Corporation.

 

The
Executive will comply with all applicable securities laws and any policies of the Corporation in effect with respect to transactions
in securities of the Corporation.

 

The
Executive shall not disparage the Corporation or any of its affiliates, directors, officers, employees or other representatives
in any manner and shall in all respects avoid any negative criticism of the Corporation.

 

    	 	 	 

    	 		 

    

 

 

The
Executive acknowledges and agrees that in the event of a breach of the covenants, provisions and restrictions in this section,
the Corporation’s remedy in the form of monetary damages will be inadequate and that the Corporation shall be, and is hereby,
authorized and entitled, in addition to all other rights and remedies available to it, to apply for and obtain from a court of
competent jurisdiction interim and permanent injunctive relief and an accounting of all profits and benefits arising out of such
breach.

 

Each
and every provision of these Sections in “Covenants of the Parties” hereunder shall survive the termination or expiration
of this Agreement or the Executive’s employment hereunder.

 

TERMINATION
OF EMPLOYMENT 

 

The
Corporation may terminate this Agreement and the Executive’s employment hereunder without payment of any compensation, other
than as set forth in this Agreement, either by way of anticipated earnings or damages of any kind, at any time by delivery of
a Notice of Termination to the Executive for any of the following reasons

 

	 	(i)	the
    Executive, in carrying out his duties, engages in conduct that constitutes intentional or conscientious misconduct (including
    but not limited to intentional or reckless breach of fiduciary duties); or
	 	 	 
	 	(ii)	the
    Executive commits an intentional or reckless and material breach of this Agreement or commits an intentional or reckless act
    of misappropriation or fraud against the Corporation, its property, or otherwise; or
	 	 	 
	 	(iii)	the
    Executive is convicted of any felonious of act of dishonesty by a Court of competent jurisdiction.

 

DIRECTORS
AND OFFICERS

 

If
the Executive is a director or officer at the relevant time, the Executive agrees that upon termination or expiration of his employment
with the Corporation he will tender his resignation from any position he may hold as an officer or director of the Corporation
or any of its affiliated or related companies.

 

The
Corporation shall maintain such directors’ and officers’ liability insurance for the benefit of the Executive in accordance
with corporate policies and as generally provided to the Directors of the Corporation.

 

    	 	 	 

    	 		 

    

 

 

The
Corporation agrees that, if the Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was
a director, officer or employee of the Corporation or is or was serving at the request of the Corporation as a director, officer,
member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding is the Executive’s alleged action in an official
capacity while serving as a director, officer, member employee or agent, the Executive shall be defended, indemnified and held
harmless by the Corporation to the fullest extent legally permitted or authorized by the Corporation’s certificate of incorporation
or bylaws against all cost, expense, liability, and loss (including, without limitation, attorney’s fees, judgments, fines,
excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Executive in connection
therewith, and such defense, indemnification and held harmlessness shall continue as to the Executive even if he has ceased to
be a director, member, employee or agent of the Corporation or other entity and shall inure to the benefit of the Executive’s
heirs, executors and administrators. The Corporation shall advance to the Executive all reasonable costs and expenses incurred
by him, whether paid or unpaid, in connection with a Proceeding within 20 days after receipt by the Corporation of a written request
for such advance. Such request shall include an undertaking by the Executive to repay the amount of such advance if it shall ultimately
be determined that he is not entitled to be indemnified against such cost and expenses.

 

ARBITRATION

 

All
matters in difference between the parties in relation to this Agreement, shall be referred to the arbitration of a single arbitrator,
if the parties agree upon one, otherwise to three arbitrators, one to be appointed by the Corporation and one to be appointed
by the Executive and a third to be chosen by the first two arbitrators named before they enter upon the business of arbitration.
The award and determination of the arbitrator or arbitrators or any of two of three arbitrators shall be binding upon the parties
and their respective heirs, executors, administrators and assigns. Each party shall be responsible for its or his own expenses
with respect to the arbitration, which will be held in greater Seattle area.

 

MISCELLANEOUS
PROVISIONS

 

The
headings of the Articles and paragraphs herein are inserted for convenience of reference only and shall not affect the meaning
or construction hereof.

 

If
any provision contained herein is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect
or impair the validity of any other provision herein and each such provision is deemed to be separate and distinct.

 

This
Agreement contains the entire understanding and agreement between the parties concerning the subject matter hereof and supersedes
all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties
with respect thereto. This Agreement shall be governed by, and construed under, the laws of California.

 

    	 	 	 

    	 		 

    

 

 

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

 

	XFit Brands, Inc.	 	James
    Bateman, Individually
	 	 	 	 
	Date:	 	 	 
	By:
    	 	 	 
	Name:
    	David
    Vautrin	 	James
Bateman
	Title:	Chief
    Executive Officer	 	President
    - Sportshxl-ex101_157.htm

 

Exhibit 10.1

SEPARATION AND CONSULTING AGREEMENT

Hexcel Corporation (the “Company”) and Ira J. Krakower (the “Executive”) enter into this Separation and Consulting Agreement (this “Agreement”) on the 7th day of September, 2016 (the “Effective Date”).  

W I T N E S S E T H:

WHEREAS, Executive and the Company are currently parties to that Amended and Restated Executive Severance Agreement dated December 31, 2008 (the “Severance Agreement”);

WHEREAS, Executive and the Company are currently parties to that Amended and Restated Supplemental Executive Retirement Agreement dated December 31, 2008 (the “SERP”);

WHEREAS, the Company desires to terminate Executive’s employment with the Company effective March 31, 2017 (the “Separation Date”) and to retain access to Executive’s advice and counsel following the Separation Date for purposes of providing the transition services described below;

NOW, THEREFORE, in consideration of the covenants and mutual promises contained in this Agreement, the parties agree as follows:

1. Separation. The parties acknowledge that the termination of Executive’s employment on the Separation Date has been independently initiated by the Company pursuant to its executive succession planning, and not at the request of the Executive who is able and willing to continue his services thereafter, and is intended to constitute an “involuntary separation from service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  From the Effective Date until 11:59 pm on March 31, 2017 (the “Employment Term”), Executive shall continue to serve as an active regular employee of the Company and perform the duties set forth in Section 2 below. At the Separation Date, Executive’s employment with the Company will terminate. Accordingly, termination on the Separation Date (i) will constitute a termination by the Company without “Cause” for purposes of the Severance Agreement, the SERP, the Management Incentive Compensation Plan (“MICP”), any outstanding or future equity grants, and any other agreement between the Company and the Executive, (ii) the Executive shall be entitled to receive the termination-related compensation and benefits provided for under Section 4(d) of the Severance Agreement pursuant to the terms of the Severance Agreement, and (iii) the Executive shall be entitled to receive the “Involuntary Termination Benefit” provided for in Section 2.2.3 of the SERP pursuant to the terms of the SERP and the elections made by Executive thereunder. The parties acknowledge that any notice requirements pursuant to the terms of the Severance Agreement or the SERP with respect to termination of Executive’s employment on the Separation Date have been made and satisfied by virtue of this Agreement, with the Separation Date being the “Date of Termination” under the Severance Agreement, the date of “Termination of Employment” under the SERP, and the date of termination of employment (or similar term) under any other agreement.

 

 

 

2. Duties During the Employment Term. During the Employment Term, the Executive shall have such duties, responsibilities, and authority as he may have as of the date hereof. Executive shall retain his current title of Executive Vice President, General Counsel & Secretary until the earlier of (i) such time as a new Executive Vice President, General Counsel & Secretary has been appointed by the Board of Directors of the Company, at which time his title shall change to Special Counsel to the Chief Executive Officer, or (ii) the Separation Date. For avoidance of doubt, any change in title pursuant to subsection (i) of the preceding sentence shall not constitute a termination of Executive’s employment with the Company for “Good Reason” for purposes of the Severance Agreement, the SERP or any other agreement between Executive and the Company. Executive shall perform his duties at the Company’s principal executive offices in Stamford, Connecticut, except for required travel on Company business; and provided that starting as of January 1, 2017, Executive shall be permitted to engage in work from his home office in New Hampshire, subject to the reasonable needs of the Company for him to perform services at other locations. 

3. Continued Effectiveness of Severance Agreement and SERP. For avoidance of doubt, the terms of the Severance Agreement and SERP shall remain in full force and effect from the Effective Date and shall not be superseded or replaced hereby. In accordance with the preceding sentence, if a “Change in Control” should occur on or prior to the Separation Date, or if the Separation Date should occur during the period of a “Potential Change in Control" (as both terms are defined in the Severance Agreement), then the Company (or its successor) shall continue to employ Executive through the Separation Date in accordance with the terms hereof and, in lieu of the compensation and benefits described in Sections 1(ii) and (iii) above, Executive shall be entitled to all of the enhanced termination-related compensation, benefits and other protective  provisions provided for under the Severance Agreement relating to a Change in Control, as well as the “Change in Control Benefit” provided for in Section 2.2.2 of the SERP, with termination of employment deemed to occur on the Separation Date. 

4. SERP Benefit Payment. Termination of Executive’s employment on the Separation Date shall be treated as the Executive’s “Termination of Employment” for purposes of the SERP. Benefit payments under the SERP shall be made in accordance with the terms of the SERP and Executive’s timely elections thereunder, subject to any delay that may be required under Section 409A, due to Executive’s status as a “specified employee” for purposes of Section 409A as of the Separation Date.

5. Transition. Upon termination of Executive’s employment with the Company on the Separation Date, Executive agrees to provide consulting services to the Company for a period beginning immediately after the Separation Date and ending on December 31, 2017 (the “Consulting Term”). The consulting services shall consist of assistance with the transition of his duties to a successor, and general advice and counsel as may be reasonably requested by the Chief Executive Officer of the Company from time to time to support his transition needs. During the Consulting Term, Executive shall not be permitted to perform consulting services for the Company at a level that is equal to or greater than 20% of the average level of services performed by Executive during the thirty-six month period immediately preceding the Separation Date. The Executive and the Company agree that upon the Company’s fulfilling all of its obligations to Executive under the Severance Agreement and this Agreement, the Executive’s 

 

 

covenant not to compete, commencing on a termination of employment as provided for in the Severance Agreement, instead will commence upon the expiration of the Consulting Term.

6. Compensation. 

(i) During the Employment Term, and regardless of the appointment of a  successor or a change in his duties responsibilities or authority, Executive shall continue to remain an active employee and receive an annual base salary at a rate not less than the rate as in effect as of the date hereof, and continue to be eligible to participate in such employee benefit plans and programs as he currently participates in (e.g., 401k, medical, dental and life insurance) with such changes therein as the Company may make from time to time similarly affecting all other senior executives. 

(ii) As consideration for both his continued employment during the Employment Term as well as his agreement to provide consulting services during the Consulting Term as provided herein, Executive will be entitled to receive an equity award under the Hexcel Corporation 2013 Incentive Stock Plan during the Company’s normal grant cycle during early 2017. The total value of the award will equal 150% of Executive’s annual base salary and will be computed in accordance with the same methodology applied to determining grants to other senior executives, and will be made in the same form as are their grants. For avoidance of doubt, Executive shall not be entitled to receive any further equity awards after the Separation Date, and having attained the age of 65 his separation of employment is a Retirement under these and any other outstanding equity awards.

(iii) This Agreement shall not affect Executive’s participation under the MICP or 401k Profit Sharing Plan (“PSP”) for 2016. During the Employment Term, the Executive will continue to remain a participant in the MICP with a target annual bonus opportunity equal to 70% of Executive’s annual base salary and continue to participate in the PSP. Any award payable to Executive under the MICP and PSP in respect of 2017 shall be governed by the terms of those plans; provided, however, that an equivalent PSP award will be paid after the Separation Date directly to Executive at the same time such contributions are made to active PSP participants, but in no event later than March 15, 2018. Upon expiration of the Employment Term, Executive will be entitled to receive a payment in lieu of accrued vacation of up to six weeks, payable in accordance with his participation in the Company’s salaried vacation plan, but in no event paid later than 30 days after the Separation Date.

(iv) During the Consulting Term, and to enhance the cyber-security of the Company’s communications, Executive will be entitled to retain his Company-provided laptop and phone and will be entitled to reimbursement from the Company for his actual, reasonable, out-of-pocket expenses incurred in connection with his provision of consulting services under this Agreement, consistent with the business expense reimbursement policy applicable to senior executives of the Company. At the end of the consulting term, Executive shall return the laptop and phone to the Company.

7. Executive Not Eligible for Active Employee Benefits During Consulting Term. The Company and the Executive intend that, during the Consulting Term, Executive will provide consulting services as Special Counsel to the Chief Executive Officer on an ad hoc as needed 

 

 

basis and not as an employee of the Company. Accordingly, the Executive acknowledges and agrees that, during the Consulting Term, and except as otherwise provided in Section 6 above, he will not be eligible to participate (either himself or his dependents) in, and expressly waives, surrenders, releases and repudiates any rights he may have to participate in, any employee benefit plans or programs offered by the Company to its active employees from time to time, including without limitation  the Company’s 401(k) plan or health and welfare plans, other than in accordance with COBRA, or as mandated by other applicable law, or pursuant to the benefit continuation provisions of the Severance Agreement. 

8. Entire Agreement. This Agreement sets forth the entire understanding between the parties hereto regarding the subject matter hereof. Notwithstanding the foregoing, this Agreement shall not replace, modify or supersede any other existing agreement between the Company and the Executive, including the Severance Agreement or the SERP or equity grants.

9. Waiver. This Agreement may not be waived, modified or amended except by the mutual written agreement of the parties hereto. No waiver by either party hereto at any time of any breach by the other party hereto, or compliance with, any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  

10. Successors; Non-Assignability.  This Agreement will be binding upon and will inure to the benefit of the Company and its successors. The rights and benefits under this Agreement are personal to Executive and such rights and benefits shall not be subject to assignment, alienation or transfer, except to the extent such rights and benefits are lawfully available to the estate or beneficiaries of Executive upon death.

11. Notice. Any notice to be given hereunder shall be in writing and shall be deemed given when mailed by certified mail, return receipt requested, addressed as follows (or to another address as provided in a notice under this Section):

To Executive at:

Ira J. Krakower

31 Wilmot Center Road

Elkins, New Hampshire 03233

To the Company at:

Hexcel Corporation

281 Tresser Blvd.

Stamford, CT  06901-3238

Attention:  Executive Vice President, Human Resources

12. Governing Law and Forum.  This Agreement will be governed by and construed and enforced in accordance with the laws of the State of Connecticut, without giving effect to the conflict of laws principles thereof. The parties hereto further agree that any action brought to enforce any right or obligation under this Agreement shall be subject to the exclusive jurisdiction of the courts of the State of Connecticut. 

 

 

13. Definitions, Heading and Numbers.  A term defined in any part of this Agreement shall have the defined meaning wherever such term is used herein.  The headings contained in this Agreement are for reference purposes only and shall not affect in any manner the meaning or interpretation of this Agreement.  Where appropriate to the context of this Agreement, use of the singular shall be deemed also to refer to the plural, and use or the plural to the singular.

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

15. Tax Withholding. The Company shall be entitled to withhold from any payments pursuant to this Agreement any and all federal, state, local taxes required to be withheld. Notwithstanding anything to the contrary in Section 5 the parties acknowledge that any payments under the MICP or in respect of PSP or equity awards after the Separation Date will be reported on Form W-2 instead of Form 1099 and will be subject to federal and state income tax and FICA withholding as required based on the circumstances then-pertaining to the Executive with regard to his domicile.

16. Section 409A. This Agreement and the amounts payable hereunder are intended to qualify for an exemption from, or alternatively to comply with the requirements of, Section 409A, and shall be interpreted in accordance with such intent.  Notwithstanding the foregoing, to the extent any amount payable under this Agreement is subject to any taxes, penalties or interest under Section 409A, the Executive shall be solely liable for the payment of any such taxes, penalties or interest.

 

 

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

 

	
HEXCEL CORPORATION

	
 

	
By: /s/ Nick L. Stanage                        

	
Name: Nick L. Stanage

	
Its: Chief Executive Officer

 

	
EXECUTIVE

	
 

	
/s/ Ira J. Krakower                                

	
    Ira J. Krakower

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