Document:

f8k082713ex10ii_ioworldmedia.htm

EXHIBIT 10.2

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”), is entered into as of this 28th day of August, 2013 (the “Effective Date”), by and between ioWorldMedia, Incorporated, a Florida corporation (the “Company”), and Julia Miller (the “Executive”).  The Company and the Executive are sometimes collectively referred to herein as the “Parties” and individually as a “Party”.

 

RECITALS

 

WHEREAS, the Company wishes to employ the Executive on the terms and conditions set forth herein; and

 

WHEREAS, the Executive wishes to be employed by the Company on the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the foregoing recitals and other respective covenants, representations and agreements of the Parties contained in this Agreement, and for such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Executive hereby agree, intending to be legally bound, as follows:

 

ARTICLE I

EMPLOYMENT

 

Section 1.01  At-Will Employment.

 

The Executive’s employment with the Company shall at all times be “at-will” and is to continue until the death of the Executive or either the Company or the Executive has notified the other Party in writing of the termination of the Executive’s employment with the Company, which termination may be for any lawful reason or for no reason at all.  This Agreement is not intended to create nor is it to be construed as an express or implied contract of continued employment for any period of time.

 

Section 1.02  Employment Duties and Offices.

 

(a)           Duties.  The Executive shall serve as the Chief Operating Officer and Secretary of the Company in accordance with this Agreement and the Company’s Bylaws.  The Executive shall have such authority and be responsible for such reasonable duties and responsibilities as are set forth in the Company’s Bylaws or assigned to her by the Company’s Board of Directors (the “Board”); provided, that such duties and responsibilities are consistent with and ordinarily expected of individuals in similar positions with publicly traded companies in the markets in which the Company operates. Certain employees of the Company and its subsidiaries will report to the Executive, and the Executive may be responsible for reviewing the performance of such employees of the Company and its subsidiaries.

 

  

  

  

 

The Executive shall faithfully perform and discharge her duties and responsibilities to the Company and its subsidiaries and shall devote the necessary time, energy, skills and attention to the business and affairs of the Company and its subsidiaries in order to fully and adequately perform such duties and responsibilities.  The Executive shall perform her duties and responsibilities to the best of her abilities in a diligent, trustworthy, businesslike and efficient manner.  The Executive understands that, in her capacity as an executive of the Company, she may be considered a Company insider and thereby subject to any insider trading policy in effect for the Company.

 

(b)           Offices.  The Executive agrees to serve without additional compensation, if elected or appointed thereto, as a member of the Board or the board of directors of any direct or indirect parent company (if applicable) or any of its subsidiaries, or in one or more executive offices of any of the Company, any direct or indirect parent company (if applicable) or any of its subsidiaries.

 

Section 1.03  Place of Performance.

 

The Executive’s principal places of business shall be at  475 Park Avenue New York, New York  10016 or 765 Market Street, San Francisco, California  94103, or such other locations as may be mutually agreed to by the Company and the Executive.  The Executive shall be required from time to time to reasonably travel as part of her duties hereunder.

 

ARTICLE II

COMPENSATION AND BENEFITS

 

Section 2.01  Compensation and Benefits.

 

(a)           Award of Shares of Common Stock.  The Company will issue 30,000,000 shares (the “Shares”) of its common stock, par value $.001 per share (“Common Stock”), to the Executive upon the effectiveness of an amendment to the Company’s Articles of Incorporation that increases the authorized shares of Common Stock to a level sufficient to allow for such issuance; provided, however, that the number of shares to be issued hereunder will be adjusted to give effect to any reverse stock split the Company may place into effect after the Effective Date of this Agreement but before the date the Shares are issued.  The Company will take all actions necessary to effect the aforementioned amendment, including the submission of the amendment to the Company’s shareholders for approval.

 

  

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The Shares to be issued hereunder will not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under any state securities laws, and, therefore, may not be sold, transferred, or otherwise disposed of except pursuant to an effective registration statement or an exemption from registration under the Securities Act.  Accordingly, each certificate evidencing the Shares shall bear the following restrictive legend or a similar legend until such time as the transfer of such securities are not restricted or such securities are not restricted under the federal securities laws:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (II) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (III) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

 

(b)           Cash Compensation.  Initially, the Company will not pay the Executive any cash compensation.  In the event the Board, in its sole discretion, determines that the Company has sufficient revenue and/or investment capital to pay cash compensation, the Board and the Executive will discuss and establish base salary payments for the Executive.  In addition, the Board, in its sole discretion, may award bonus compensation to the Executive which shall be based on such performance criteria as developed by the Board and the Executive.  Any base salary and bonus will be paid in accordance with the Company’s ordinary payroll practices and policies.

 

(c)           Vacation.  The Executive shall be entitled to twenty (20) days of vacation each calendar year, subject to adjustment based on time of service to the Company as may be provided for in the Company’s vacation policy for full-time employees.  Subject to applicable law, any vacation days will be unpaid until such time as the Company has sufficient revenue and/or investment capital to pay the Executive for her vacation days.  All other terms and conditions related to vacation shall be as may be set forth in the Company’s vacation policy for full-time employees.

 

(d)           Additional Compensation.  The Board will consider awarding additional compensation to the Executive based on the Company’s performance for the remainder of 2013 and the operating plan developed for 2014.

 

Section 2.02  Other Executive Benefits.

 

The Executive (and her dependents and beneficiaries, if applicable) shall be eligible to participate in all employee benefit plans which the Company makes generally available to full-time employees and participation in any such employee benefit plan shall be in accordance with the Company’s policies with respect to, and the terms and conditions of, such employee benefit plan.  Such employee benefit plans and programs may be amended from time to time or terminated in the sole discretion of the Company.

 

  

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Section 2.03  Business Expenses.

 

The Executive shall be entitled to prompt reimbursement for all reasonable, ordinary and necessary business expenses, including travel expenses, incurred by the Executive during her employment with the Company (in accordance with the policies and procedures established for employees of the Company) in the performance of her duties and responsibilities for the Company under this Agreement; provided, however, that Executive shall properly account for such expenses in accordance with the Company’s policies and procedures.

 

Section 2.04  Withholding Taxes

 

Payments made to the Executive pursuant to this Agreement shall be subject to withholding and social security taxes and other ordinary and customary payroll deductions.

 

ARTICLE III

NON-COMPETITION, NON-DISCLOSURE AND NON-SOLICITATION

 

Section 3.01  Covenant Not to Compete.

 

(a)           The Executive hereby agrees that during the Executive’s employment with the Company and thereafter for a period of six (6) months (hereinafter referred to as the “Covenant Period”), the Executive will not directly or indirectly engage in, become affiliated with, or become interested in any business in the Restricted Territory (as defined below), which is engaged in a Competing Business (as defined below), alone or with any individual, group, partnership, limited partnership, corporation, limited liability company, firm, association or any other person or entity in any capacity.  For these purposes, “to engage in,” “become affiliated with” or “become interested in” shall mean: (i) becoming an officer, director, agent, representative, consultant, independent contractor or employee of any entity, enterprise or person which is engaged in a Competing Business; (ii) becoming an owner, partner, limited partner, member, joint venturer, creditor, or shareholder or stockholder in a Competing Business (except as a shareholder or stockholder owning not greater than a five percent (5%) interest in a corporation, entity or other person whose shares are actively traded on a national securities exchange or in the over-the-counter market); and (iii) communicating to any person, which is engaged in a Competing Business, the names or addresses or any other information concerning any past, present, or prospective client, customer, joint venture partner, supplier or acquisition or investment target of the Company.  For purposes of this Section 3.01, a “Competing Business” means any business which performs the same or substantially similar services as the Company, including, without limitation, any internet radio service provider and business offering customized background music, and the “Restricted Territory” shall mean the United States of America.

 

(b)           If the covenant not to compete provided for herein is found by any court having jurisdiction to be too broad or too restrictive, then the covenant not to compete shall nevertheless remain effective, but shall be considered amended to a point considered by said court as reasonable and, as so amended, shall be fully enforceable.

 

  

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Section 3.02  Non-Solicitation and Non-Interference.

 

The Executive hereby agrees that during the Executive’s employment with the Company and thereafter for a period of twelve (12) months (the “Non-Solicitation Period”), the Executive will not in any way, directly or indirectly, for herself or on behalf of or in conjunction with any other individual, person, partnership, limited partnership, limited liability company, firm, association, corporation or entity:

 

(a)           Solicit or divert away or attempt to solicit or divert any client or customer served or solicited by the Company while the Executive was employed by the Company or any potential customer of the Company if such potential customer’s business had been actively solicited by the Company while the Executive was employed by the Company;

 

(b)           Interfere with or attempt to interfere with negotiations between the Company and any acquisition or investment target of the Company;

 

(c)           Solicit or attempt to solicit any acquisition or investment target which the Company has been in negotiations with during the six (6) month period prior to the Executive’s termination of employment with the Company;

 

(d)           Cause, induce, or encourage any employee of the Company to leave the employ of the Company, or any independent contractor to terminate any independent contractor relationship with the Company;

 

(e)           Cause, induce, or encourage any former employee of the Company to become employed by a business which is engaged in a Competing Business; or

 

(f)            Employ or seek to employ any person who is at that time employed with the Company.

 

Section 3.03  Remedies.

 

The Executive acknowledges that any breach or violation of this Article III by the Executive will cause irreparable harm to the Company and that damages are not an adequate remedy.  The Executive therefore agrees that the Company shall be entitled to specific performance and injunctive relief in addition to any other remedy that may be available at law or in equity.

 

Section 3.04  Independent.

 

The covenants set forth in the foregoing Sections of this Article III are and shall be deemed and construed as separate and independent covenants.  Should any part or provision of such covenants be held invalid, void or unenforceable in any court of competent jurisdiction, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision thereof.  Specifically, and without limiting the generality of the foregoing, if any portion of Sections 3.01, 3.02 or 3.03 is found to be invalid by a court of competent jurisdiction because its duration, the territory and/or the restricted business are invalid or unreasonable in scope, such duration, territory and/or restricted business, as the case may be, shall be redefined by consideration of the reasonable concerns and needs of the Company such that the intent of the Company and the Executive, in agreeing to Sections 3.01, 3.02, 3.03 and 3.04, will not be impaired and shall be enforceable to the fullest extent of the applicable laws.

 

  

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ARTICLE IV

MISCELLANEOUS

 

Section 4.01  Notices.

 

All notices required or permitted hereunder shall be in writing and shall be delivered by hand delivery, overnight courier or certified or registered mail, return receipt requested, postage prepaid, as follows:

 

	
If to the Company:

	
ioWorldMedia, Incorporated

	  	
475 Park Avenue

	  	
New York, New York  10016

	  	
Attention:  President and Chief Executive Officer

	  	  
	  	
with a copy to:

	  	  
	  	
Paul T. Colella, Esq.

	  	
Giordano, Halleran & Ciesla, P.C.

	  	
125 Half Mile Road, Suite 300

	  	
Red Bank, New Jersey 07701

	  	  
	
If to the Executive:

	
Julia Miller

	  	
85 UN Plaza 14g

	  	
New York, New York 10017

 

Notices may be sent to such other address as either Party may designate in a written notice served upon the other Party in the manner provided herein.  All notices required or permitted hereunder shall be deemed duly given and received on the day delivered, if delivery is by hand delivery, the next business day, if delivery is by overnight courier, or the second day next succeeding the date of mailing, if delivery is by registered mail.

 

Section 4.02  Governing Law and Consent to Jurisdiction.

 

This Agreement will be governed by and construed in accordance with the laws of the State of New York, without giving effect to its conflicts of laws principles.  All disputes, claims or controversies arising out of or in connection with this Agreement shall be subject to the jurisdiction of the federal and state courts in New York City, New York.

 

Notwithstanding the previous paragraph and provided both Parties consent, the Parties may, at any time after the inception of a dispute, claim or controversy arising out of or in connection with this Agreement, submit such dispute, claim or controversy to binding arbitration under the rules of the American Arbitration Association in effect at the inception of such dispute, claim or controversy.  The Parties shall cooperate fully with each other so that any such dispute, claim or controversy submitted to binding arbitration pursuant to this Section 4.02 may be resolved as expeditiously as possible.

 

  

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Section 4.03  Waiver of Jury Trial.

 

Each of the Company and the Executive hereby waives the right to trial by jury in all proceedings commenced with respect to any disputes, claims or controversies arising out of or in connection with this Agreement.

 

THE EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION 4.03 WHICH DISCUSSES THE WAIVER OF THE EXECUTIVE’S RIGHT TO A JURY TRIAL.  THE EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, THE EXECUTIVE IS WAIVING HER RIGHT TO A JURY TRIAL IN ALL DISPUTES, CLAIMS OR CONTROVERSIES RELATING TO ANY ASPECT OF THE EMPLOYER/EMPLOYEE RELATIONSHIP GOVERNED BY THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING CLAIMS:

 

(a)           ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION;

 

(b)           ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL, STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, THE CONSCIENTIOUS EMPLOYEE PROTECTION ACT, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, AND THE FAIR LABOR STANDARDS ACT; AND

 

(c)           ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

 

Section 4.04  Entire Agreement; Amendments.

 

This Agreement contains the entire agreement between the Parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, oral or written, with respect to the subject matter hereof, but excluding the Confidential Information and Intellectual Property Assignment Agreement attached hereto as Exhibit A.  This Agreement may not be changed, amended or modified orally, but may be changed only by an agreement in writing signed by the Party against whom any waiver, change, amendment, modification or discharge may be sought.

 

  

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Section 4.05  Agreement Relating to Intellectual Property and Confidential Information.

 

The Parties hereby acknowledge that contemporaneously herewith, the Executive executed and delivered to the Company the Confidential Information and Intellectual Property Assignment Agreement, a copy of which is attached hereto as Exhibit A, and said agreement shall remain in full force and effect pursuant to its terms from and after the Effective Date.

 

Section 4.06  Successors and Assigns.

 

This Agreement shall be enforceable by, inure to the benefit of and be binding upon (a) the Executive and the Executive’s heirs, beneficiaries, executors, administrators and legal representatives, and (b) the Company and its successors and assigns.  The Company may assign this Agreement, including, without limitation, in connection with any merger or consolidation of the Company with any other person or entity or a sale of all or substantially all of the assets of the Company to any other person or entity.  The assignment of this Agreement by the Company shall not be deemed a termination of the Executive’s employment.  The obligations of the Executive under this Agreement are personal to the Executive and may not be assigned, delegated or transferred to any other person by the Executive.

 

Section 4.07 Severability.

 

If any one or more of the provisions of this Agreement shall be determined to be invalid, illegal, or unenforceable in any respect and for any reason, the validity, legality, and enforceability of any such provision in every other respect and the remaining provisions of this Agreement shall not in any way be impaired.

 

Section 4.08  Headings.

 

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

 

Section 4.09  Counterparts.

 

This Agreement may be executed in one or more counterparts, none of which need contain the signature of more than one Party hereto, each of which shall be deemed to be an original, and all of which together shall constitute a single agreement.

 

Section 4.10  Acknowledgement.

 

The Executive represents that she has read and fully understands the terms of this Agreement and that she has signed it voluntarily.  The Executive has been given an adequate opportunity to review this Agreement and the Confidential Information and Intellectual Property Assignment Agreement attached hereto as Exhibit A with her attorney and other advisors.

 

  

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IN WITNESS WHEREOF, the Parties have executed this Executive Employment Agreement on the day and year first set forth above.

 

	  	
IOWORLDMEDIA, INCORPORATED

	  	  	  
	  	
By:

	
/s/ Zachary McAdoo

	  	
Name:

	
Zachary McAdoo

	  	
Title:

	
President and Chief Executive Officer

	  	  	  
	 	EXECUTIVE
	 	 	 
	 	/s/ Julia Miller
	 	Julia Miller

  

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EXHIBIT A

CONFIDENTIAL INFORMATION AND INTELLECTUAL PROPERTY  ASSIGNMENT AGREEMENT

IOWORLDMEDIA, INCORPORATED

 

Confidential Information and Intellectual Property Assignment Agreement

(this “Agreement”)

 

As a condition of my employment relationship with ioWorldMedia, Incorporated, its subsidiaries, affiliates, successors or assigns (together the "Company"), and in consideration of my employment relationship with the Company and my receipt of the compensation now and hereafter paid to me by Company, I agree to the following:

 

1.      Confidential Information.

(a)           Company Information.  I agree at all times during the term of my employment relationship with the Company (my "Relationship with the Company") and thereafter to hold in strictest confidence, and not to use except for the benefit of the Company or to disclose to any person, firm or corporation without written authorization of the Board of Directors of the Company, any Confidential Information (as hereinafter defined) of the Company.  I understand that "Confidential Information" means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and customers (including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during the term of my Relationship with the Company), markets, works of original authorship, photographs, negatives, digital images, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or equipment.  I further understand that Confidential Information does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved.

(b)           Other Employer Information.  I agree that I will not, during my Relationship with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that I will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

  

  

  

 

(c)           Third Party Information.  I recognize that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes.  I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company's agreement with such third party.

 

2.      Intellectual Property.

(a)           Assignment of Intellectual Property.  I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title, and interest in and to any original works of authorship, inventions, concepts, improvements or trade secrets, whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time I am employed by the Company (collectively referred to as "Intellectual Property") and which (i) are developed using the equipment, supplies, facilities or Confidential Information of the Company, (ii) result from or are suggested by work performed by me for the Company, or (iii) relate to the business, or to the actual or demonstrably anticipated research or development, of the Company. The Intellectual Property will be the sole and exclusive property of the Company.  I further acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of and during the period of my Relationship with the Company and which are protectable by copyright are "works made for hire," as that term is defined in the United States Copyright Act.  To the extent that any Intellectual Property is not deemed to be work for hire, then I will and hereby do assign all my right, title and interest in such Intellectual Property to the Company, except as provided in Section 2(e).

(b)           Patent and Copyright Registrations.  I agree to assist the Company, or its designee, at the Company's expense, in every proper way to secure the Company's rights in the Intellectual Property and any copyrights, patents or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Intellectual Property, and any copyrights, patents or other intellectual property rights relating thereto.  I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement.  If the Company is unable because of my mental or physical incapacity or for any other reason to secure my assistance in perfecting the rights transferred in this Agreement, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me.  The designation and appointment of the Company and its duly authorized officers and agents as my agent and attorney in fact shall be deemed to be coupled with an interest and therefore irrevocable.

 

  

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(c)           Maintenance of Records.  I agree to keep and maintain adequate and current written records of all Intellectual Property made by me (solely or jointly with others) during the term of my Relationship with the Company.  The records will be in the form of notes, sketches, drawings, and works of original authorship, photographs, negatives, digital images or any other format that may be specified by the Company.  The records will be available to and remain the sole property of the Company at all times.

(d)           Intellectual Property Retained and Licensed.  I provide below a list of all original works of authorship, inventions, developments, improvements, and trade secrets which were made by me prior to my Relationship with the Company (collectively referred to as "Prior Intellectual Property"), which belong to me, which relate to the Company's current or anticipated business, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there is no such Prior Intellectual Property.  If in the course of my Relationship with the Company, I incorporate into Company property any Prior Intellectual Property owned by me or in which I have an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Intellectual Property as part of or in connection with such Company property.

Prior Intellectual Property:

	

Title

	 	

Date

	 	

Identifying Number

or Brief Description

	
Xbox Live Subscription Service

	 	
2000-2004

	 	
gaming service and matchmaking

	 	 	 	 	 
	
Apple Max Service

	 	
2004-2006

	 	
photo sharing, cloud storage, music sharing across devices

	 	 	 	 	 
	
iBloks

	 	
2006-2008

	 	
video ad creation and serving

	 	 	 	 	 
	
YouCast

	 	
2008-2011

	 	
social media tracking across platform

	 	 	 	 	 
	
DigiPowers

	 	
2009-2013

	 	
Expert services subscription business, all digital lifestyle content experiences

 

Note: Each of  the Prior Intellectual Property described above integrated the use of music and soundtracks over the internet or through a VPN.

  

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(e)           Exception to Assignments.  I understand that the provisions of this Agreement requiring assignment of Intellectual Property to the Company do not apply to any intellectual property that (i) I develop entirely on my own time; and (ii) I develop without using Company equipment, supplies, facilities, or Confidential Information; and (iii) do not result from any work performed by me for the Company; and (iv) do not relate at the time of conception or reduction to practice to the Company's current or anticipated business, or to its actual or demonstrably anticipated research or development.  Any such intellectual property will be owned entirely by me, even if developed by me during the time period in which I am in the service of the Company.  I will advise the Company promptly in writing of any intellectual property that I believe meet the criteria for exclusion set forth herein and are not otherwise disclosed pursuant to Section 2(d) above.

(f)           Return of Company Documents.  I agree that, at the time of leaving the service of the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all works of original authorship, photographs, negatives, digital images, devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings blueprints, sketches, materials, equipment, other documents or property, any Confidential Information or reproductions of any aforementioned items developed by me pursuant to my employment with the Company or otherwise belonging to the Company, its successors or assigns.  In the event of the termination of my Relationship with the Company, I agree to sign and deliver the "Termination Certificate" attached hereto as Appendix A.

 

3.      Notification of New Employer.  In the event that I leave the service of the Company, I hereby grant consent to notification by the Company to my new employer or consulting client about my rights and obligations under this Agreement.

 

4.      Representations.  I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my Relationship with the Company.  I have not entered into, and I agree I will not enter into, any oral or written agreement in conflict herewith.  I agree to execute any proper oath or verify any proper document required to carry out the terms of this Agreement.

 

5.      Equitable Relief.  I acknowledge that any breach or violation of this Agreement by me will cause irreparable harm to the Company and that damages are not an adequate remedy.  I therefore agree that the Company shall be entitled to specific performance and injunctive relief in addition to any other remedy that may be available at law or in equity.

 

6.      General Provisions.

(a)           Governing Law; Consent to Personal Jurisdiction.  This Agreement will be governed by and construed in accordance with the laws of the State of New York, without giving effect to its conflicts of law principles.  I hereby expressly consent to the nonexclusive personal jurisdiction and venue of the state and federal courts located in New York City, New York for any lawsuit filed there by either party arising from or relating to this Agreement.

 

  

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(b)           Waiver of Jury Trial.  I hereby waive the right to trial by jury in all proceedings commenced with respect to any disputes, claims or controversies arising out of or in connection with this Agreement.

I HAVE READ AND UNDERSTAND THIS SECTION 6(b) WHICH DISCUSSES THE WAIVER OF MY RIGHTS TO A JURY TRIAL.  I UNDERSTAND THAT BY SIGNING THIS AGREEMENT, I AM WAIVING MY RIGHT TO A JURY TRIAL IN ALL DISPUTES, CLAIMS OR CONTROVERSIES RELATING TO ANY ASPECT OF THIS AGREEMENT.

(c)           Entire Agreement.  This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the party to be charged.  Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

(d)           Severability.  If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will continue in full force and effect.

(e)           Successors and Assigns.  This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns.

(f)           Counterparts. This Agreement may be executed in one or more counterparts, none of which need contain the signature of more than one party hereto, each of which shall be deemed to be an original, and all of which together shall constitute a single agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

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IN WITNESS WHEREOF, the undersigned has executed this Confidential Information and Intellectual Property Assignment Agreement as of August 28, 2013.

	  	 	
EXECUTIVE

	  	 	  
	  	 	  
	  	 	
(Signature)

	  	 	  
	  	 	
Julia Miller

	  	 	
(Print Name)

	  	 	  
	  	 	
845 UN Plaza 14g

	  	 	
New York, New York  10017

	  	 	
(Print Address)

	  	 	  
	  	 	  
	  	 	
Agreed to and Accepted by 

IOWORLDMEDIA, INCORPORATED

	  	 	  
	  	
By:

	
 

	  	
Name:

	Zachary McAdoo
	  	
Title:

	President and Chief Executive Officer

  

  

  

 

APPENDIX A

 

IOWORLDMEDIA, INC. 

 

Termination Certificate

 

This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, any Confidential Information (as such term is defined in the Intellectual Property Agreement defined below) or reproductions of any aforementioned items belonging to ioWorldMedia, Incorporated its subsidiaries, affiliates, successors or assigns (together, the "Company").

I further certify that I have complied with all the terms of the Company's Confidential Information and Intellectual Property Assignment Agreement signed by me (the "Intellectual Property Agreement"), including the reporting of any Intellectual Property (as defined therein), conceived or made by me (solely or jointly with others) covered by the Intellectual Property Agreement.

I further agree that, in compliance with the Intellectual Property Agreement, I will preserve as confidential all Confidential Information, including all trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees.

	  	  	  
	

(Date)

	  	
(Signature)EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is made by and between KEVIN MORIARTY (“Executive”),
and AVNET, INC., a New York corporation, with its principal executive offices at 2211 South
47th Street, Phoenix, AZ 85034 (the “Company”), effective as of this 1st day
of September, 2013 (the “Effective Date”).

WHEREAS, Executive is now and has been employed by the Company as Chief Financial Officer
pursuant to that certain Letter Agreement dated November 19, 2012, and effective as of January 2,
2013 (the “Letter Agreement”); and

WHEREAS, the Company wishes to provide for the continued employment of Executive; and

WHEREAS, Executive wishes to accept such continued responsibilities and employment and to
render services to the Company in accordance with the provisions of this Agreement.

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

	1.	 	Employment, Duties and Responsibilities

a. Employment. The Company hereby employs Executive, and Executive hereby accepts
employment upon the terms and conditions set forth in this Agreement. This Agreement supersedes
and replaces the Letter Agreement, except that Executive’s obligation under the Letter Agreement to
repay a pro-rata share of his signing bonus if he terminates employment within 12 months after his
start date shall remain in effect.

b. Position. On and after the Effective Date, for the term of this Agreement,
Executive shall serve as Senior Vice President and Chief Financial Officer of the Company. In
addition, if requested by the Company’s Chief Executive Officer, Executive shall serve, without
additional compensation, as an officer or director of subsidiaries, divisions, or affiliates of the
Company.

c. Performance of Duties. Executive agrees to devote his full-time attention and best
efforts to the business and affairs of the Company. Executive shall perform all duties and
responsibilities commensurate with his position(s) and shall follow the reasonable directions of
the Company’s Chief Executive Officer. Executive may serve on civic, charitable or corporate
boards or committees, fulfill speaking engagements, and manage his personal affairs, so long as the
Company reasonably determines that such activities do not interfere, compete with, or otherwise
pose a conflict of interest with respect to, the performance of Executive’s duties and
responsibilities. Executive shall comply with Company policies and procedures as adopted from time
to time, including the Company’s Code of Conduct.

	2.	 	Term of Agreement

This Agreement shall be effective beginning on the Effective Date, and contine until
terminated pursuant to Section 5, below.

	3.	 	Compensation

For all services to be rendered by Executive and for all covenants undertaken by him, the
Company shall pay and Executive shall accept the following compensation:

a. Base Salary. Executive shall receive a base salary in an amount as shall be agreed
upon from time to time between the Company and Executive. If Executive is elected or reelected as
an officer or a director of the Company or any subsidiary, division or affiliate thereof, he shall
serve as such without additional compensation.

b. Incentive Programs and Bonuses.

(i) Incentive Programs. For each fiscal year of the Company during the term of the
Agreement, Executive shall be eligible to receive incentive payments for services
rendered during the fiscal year pursuant to the Company’s Executive Incentive Plan
(the “Incentive Plan”). The actual amount, if any, of Executive’s incentive payment
for each fiscal year shall be determined by the Compensation Committee (the
“Compensation Committee”) of the Board of Directors of the Company (the “Board of
Directors”) based on (and subject to) the Company’s performance against goals
established in accordance with the Incentive Plan, and may range from zero to any
maximum established pursuant to the Incentive Plan. If Executive is employed for
only part of a fiscal year, Executive’s incentive payment (if any) for such fiscal
year shall be pro-rated for the number of days during the fiscal year during which
he was employed, and shall be paid at the end of the performance period based upon
(and subject to) actual achievement of performance goals. In the event of a “change
of ownership or control,” within the meaning of Treas. Reg. § 1.162-27(e)(2)(v) (an
“Ownership Change”), in which the Company has not been the acquiring and/or
surviving entity, the Board or Compensation Committee of the surviving entity shall
modify the performance objectives for the fiscal year in which the Ownership Change
occurs to the extent necessary (if at all) to ensure that Executive’s incentive
opportunity for such fiscal year is at least comparable to the incentive opportunity
that was expected when the performance objectives for such fiscal year were first
established. In the event of a dispute regarding the extent of the modification,
such dispute shall be resolved by an independent compensation consultant who is
acceptable to both Executive and the Company. Such compensation consultant shall be
engaged and paid by the Company. If the compensation consultant determines that
(A) the existing performance objectives are no longer consistent with the intended
incentive opportunity and (B) it is not practicable to revise the applicable
performance objectives, Executive’s incentive payment for the applicable fiscal year
shall be no less than the target amount for such fiscal year. For purposes of this
paragraph, the fiscal year of the Company shall be determined without regard to any
Ownership Change.

(ii) Bonus Payments. In addition to any incentive payments under the Incentive
Plan, Executive shall be eligible to receive such additional bonuses as may be
awarded by the Committee or the Board.

(iii) Recoupment Policy. Any incentive or bonus payment made to Executive shall be
subject to the terms and conditions of the Company’s recoupment or clawback policy,
as in effect and amended from time to time, including disgorgement or repayment to
the extent required by such policy.

c. Participation in Equity Plans. Executive shall participate in the Company’s
various stock option and other equity incentive plans as in effect from time to time, subject to
the terms of such plans and, to the extent applicable, Executive’s executing and not revoking the
restrictive covenant agreement described in Section 3.d(ii), below.

d. Employee Benefits. Executive shall be entitled to participate, on terms no less
favorable than the terms offered to other senior executives of the Company, in any group and/or
executive life, hospitalization or disability insurance plan, health program, profit sharing,
deferred compensation plan, employee stock purchase plan, 401(k) plan, pension plan, and similar
benefit plans (qualified, non-qualified, and supplemental) and other fringe benefits of the Company
in effect from time to time; provided, however, that—

(i) Executive shall not be entitled to participate in or receive benefits under any
severance or similar plan or program maintained by the Company (other than this
Agreement and Executive’s COC (as described in Section 5.h, below)); and

(ii) Executive’s rights to post-termination vesting and benefits under any stock
option or other equity incentive plan maintained by the Company shall be contingent
on Executive executing and not revoking a mutually acceptable restrictive covenant
agreement. It is anticipated that such agreement will include restrictions
comparable to the restrictions set forth in Section 4, below (Restrictive
Covenants), and will apply for the period during which Executive is receiving equity
incentive benefits, and/or continuing to vest in equity incentive or stock option
benefits.

e. Vacation and Other Absences. Executive shall be entitled to paid vacations each
year in accordance with the Company’s then-current vacation policy for senior executives.
Executive shall be subject to the policies and procedures relating to other absences from regular
duties for holidays, sick or disability leave, leave of absence without pay, or leave for other
reasons, as those customarily provided to the Company’s senior executives.

f. Expenses. The Company shall reimburse Executive’s travel, entertainment, and other
business expenses that are reasonably and necessarily incurred by him in the course of performing
his duties and properly documented, all in accordance with the Company’s policies as in effect from
time to time.

	4.	 	Restrictive Covenants

Executive acknowledges and recognizes (i) his possession of Confidential Information (as
defined in Section 4.b, below), (ii) the highly competitive nature of the business of the Company
and its affiliates and subsidiaries, which is worldwide in scope, and (iii) that reasonable
restrictions on Executive’s future business endeavors and Executive’s ability to disclose
Confidential Information are necessary to protect valuable client and customer relationships of the
Company. Accordingly, in consideration of the premises contained herein, Executive agrees to the
restrictions set forth in this Section 4.

a. Non-Competition. Executive agrees that during the term of this Agreement Executive
shall not, either individually or as an officer, director, stockholder, member, partner, agent,
employee, consultant, principal, or committee-member of another business firm or sole
proprietorship, (i) engage in, or be connected in any manner with, any business operating anywhere
in the world that is in direct or indirect competition with any active business of the Company or
any of its affiliates or subsidiaries, or any planned business of the Company or any of its
affiliates or subsidiaries of which Executive is aware (each a “Competitive Business”); (ii) be
employed by an entity or person that controls a Competitive Business; or (iii) directly or
indirectly solicit any customer or client of the Company or any of its affiliates or subsidiaries;
provided, however, that the restrictions set forth in this Section 4.a shall not prohibit Executive
from being a passive shareholder of a public company if Executive owns less than one percent (1%)
of such company.

b. Confidential Information. Executive agrees that he shall not, at any time during
the term of this Agreement or thereafter, disclose to another, or use for any purpose other than
performing his duties and responsibilities under this Agreement, any Confidential Information. For
purposes of this Agreement, Confidential Information includes all trade secrets and confidential
information of the Company and its affiliates and subsidiaries including, but not limited to, the
Company’s unique business methods, processes, operating techniques and “know-how” (all of which
have been developed by the Company or its affiliates and subsidiaries through substantial effort
and investment), profit and loss results, market and supplier strategies, customer identity and
needs, information pertaining to employee effectiveness and compensation, inventory strategy,
product costs, gross margins, and other information relating to the affairs of the Company and its
affiliates and subsidiaries that Executive shall have acquired during his employment with the
Company.

c. Non-Solicitation of Employees. Executive agrees that he shall not, at any time
during the term of this Agreement, including all renewals, and for five (5) years thereafter,
directly or indirectly solicit or induce any of the employees of the Company or any of its
affiliates or subsidiaries to terminate employment with their employer.

	5.	 	Termination Rights and Responsibilities

The Company may terminate Executive’s employment with or without cause, and Executive may
voluntarily terminate his employment, at any time during the term of this Agreement, subject to the
provisions of this Section 5.

a. Executive Voluntary Termination. Except to the extent otherwise provided in
subsection b, below (Executive Termination Upon Change in Office and Duties), if Executive wishes
to terminate his employment under this Agreement, he must provide written notice of such intent at
least ninety (90) days before his intended termination date. For the period from when he provides
such notice through his termination date, Executive shall continue to perform all duties required
of him under this Agreement and, in consideration for such continued service, shall continue to be
paid his base salary and other compensation required by Section 3, above. Any annual incentive
payment for such period shall be paid at the end of the performance period, at the time prescribed
by the Incentive Plan, based on (and subject to) actual achievement of the applicable performance
goals, and pro-rated if Executive’s employment terminates before the end of the performance period.
If Executive fails to provide ninety (90) days’ advance written notice, and there is not mutual
agreement, he shall not be eligible for any bonus or annual incentive payments for any partial
fiscal year worked and may also be liable for damages and/or subject to injunctive relief pursuant
to Section 6, below; provided, however, that if such failure is due to the Company’s request that
Executive stop providing services (for a reason other than Cause, as defined in subsection g,
below), Executive shall be entitled to the payments and benefits prescribed by subsection f, below
(“Company Termination Without Cause,” taking into account the Six-Month Delay Rule described in
Section 7.c, below, and the Company’s right to pay cash in lieu of continued benefits, in
accordance with Section 7.f, below), through the ninetieth (90th) day after Executive provided
written notice of his intent to terminate employment (but not for any period thereafter).

b. Executive Termination Upon Change in Office and Duties. If during the term hereof
the Executive suffers an Adverse Action, as such term is defined in the Change of Control Agreement
separately entered into between the Company and Executive (the “COC”), Executive may terminate his
employment under this Agreement, subject to the following procedures

(i) Within ninety (90) days after the Adverse Action, Executive shall notify the
Company in writing of his desire to terminate employment on account of such Adverse
Action;

(ii) Following its receipt of such notice, the Company shall have thirty (30) days
to remedy the Adverse Action; and

(iii) If the Company fails to remedy the Adverse Action by the end of such thirty
(30) day period and Executive’s termination of employment occurs no later than two
(2) years after the Adverse Action, the Adverse Action shall be treated as ninety
(90) days written notice of the Company’s intent to terminate Executive’s employment
without Cause and Executive’s termination of employment shall be treated as a
“Company Termination Without Cause” under subsection f, below. For the avoidance of
doubt, the notice period and any right to continued compensation shall run from the
date of the Adverse Action, and not from any later date.

c. Retirement. Executive’s termination of his employment under this Agreement by
reason of retirement shall be treated as a voluntary termination by Executive pursuant to, and
subject to the requirements of, subsection a, above.

d. Death of Executive. This Agreement shall terminate immediately in the event of the
death of Executive. Upon such termination, the Company shall pay to Executive’s legal
representative as soon as practicable all accrued and unpaid base salary and a pro-rated portion of
any other compensation otherwise due under Section 3, above. Such amounts shall be paid within
ninety (90) days after Executive’s death, on a date determined by the Company; provided, however,
that any pro-rated incentive payment shall be paid at the end of the performance period, at the
time prescribed by the Incentive Plan, based on (and subject to) actual achievement of the
applicable performance goals. The Company shall also pay any benefits that are payable pursuant to
the terms of the plans and programs described in Section 3.d, above.

e. Disability of Executive. If Executive becomes Disabled (as defined below) during
the term of this Agreement, Executive shall be entitled to any disability benefits payable under
Company-sponsored disability benefit plans made available to Company employees generally, and his
employment hereunder shall terminate. Executive shall be entitled to a pro-rated incentive payment
for the fiscal year in which his employment terminates; such incentive payment shall be paid at the
end of the performance period, at the time prescribed by the Incentive Plan, based on (and subject
to) actual achievement of the applicable performance goals. “Disabled” and “Disability” shall mean
that Executive has been totally disabled by injury or illness, mental or physical, as a result of
which he is prevented from further performance of the duties required by this Agreement, and that
such disability is likely to be permanent and continuous during the remainder of Executive’s life.

In the event of a dispute over whether Executive has become Disabled, such dispute shall be
resolved through arbitration under American Arbitration Association rules, in Phoenix, Arizona.

f. Company Termination Without Cause. If the Company wishes to terminate Executive’s
employment under this Agreement for a reason other than “Cause” (as defined in subsection g,
below), or death or Disability (as defined in subsection e, above), the Company shall provide to
Executive written notice of such intent at least ninety (90) days before the intended termination
date. During the period from such written notice through the first anniversary of the date on
which such written notice was provided, Executive shall continue to be paid his base salary and
other compensation required by Section 3, above, each at a rate no less than the rate in effect
immediately before the notice date; provided, however, that (i)  Executive’s right to continued
salary and other compensation shall be subject to the Six-Month Delay Rule described in Section
7.c, below, and the provisions of Section 7.g (Cash in Lieu of Benefits), below, and (ii) if
Executive’s employment terminates before the first anniversary of his start date with the Company,
the Company shall make the payments required by this subsection f within ten days after his
termination date. Executive shall continue to be eligible for annual incentive payments after the
Company has provided notice of its intent to terminate Executive’s employment hereunder. Any
annual incentive payments due shall be paid at the end of the performance period, at the time
prescribed by the Incentive Plan, based on (and subject to) actual achievement of the applicable
performance goals and pro-rated if Executive’s employment terminates before the end of the
performance period.

g. Company Termination With Cause. If the Company terminates Executive’s employment
hereunder for “Cause” (as defined in this subsection g), the Company shall not be required to
provide any advance notice. In the event of a termination for Cause, the Company shall pay to
Executive any salary due pursuant to Section 3.a, above, for service through the date of
termination, within thirty (30) days thereafter, and Executive shall forfeit any right to receive
incentive compensation or a bonus pursuant to Section 3.b, above. For purposes of this Agreement,
“Cause” means, but is not limited to, Executive’s gross misconduct, breach of any material term of
this Agreement, willful breach, habitual neglect or wanton disregard of his duties, or conviction
of any criminal act.

h. Executive Termination Upon Change of Control. Upon a Change of Control as defined
in the COC, the provisions of the COC shall apply. If Executive becomes eligible to receive any
payment or payments under the COC, such payments shall be in lieu of any right to payments or
benefits under this Section 5 and he shall not be entitled to receive any payments or benefits
under this Section 5.

	6.	 	Specific Performance

Executive acknowledges that (a) the services to be rendered under this Agreement and the
obligations of Executive assumed herein are of a special, unique and extraordinary character; (b)
it would be difficult or impossible to replace such services and obligations; (c) the Company, its
subsidiaries and affiliates will be irreparably damaged if the provisions hereof are not
specifically enforced; and (d) the award of monetary damages will not adequately protect the
Company, its subsidiaries and affiliates in the event of a breach hereof by Executive. As a
result, Executive agrees and consents that if he violates any of the provisions of this Agreement,
the Company shall, without any bond or other security being required and without the necessity of
proving monetary damages, be entitled to a temporary and/or permanent injunction to be issued by a
court of competent jurisdiction restraining Executive from committing or continuing any violation
of this Agreement, or any other appropriate decree of specific performance. Such remedies shall
not be exclusive and shall be in addition to any other remedy (including monetary damages) that the
Company may have.

	7.	 	Section 409A and Cash in Lieu of Benefits

a. Intent to Comply With Section 409A. This Agreement shall be interpreted consistent
with the intent to comply with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), such that there are no adverse tax consequences, interest, or
penalties as a result of any amount paid or payable under this Agreement. Any ambiguity or
inconsistency in the provisions of this Agreement shall be resolved consistent with such intent.
In addition, to the extent permitted by law, the parties agree to make a good faith effort to
modify this Agreement to the extent that either party determines is necessary to comply with
Section 409A.

b. Separation From Service. Except as otherwise expressly provided, references in
this Agreement to Executive’s termination of employment, termination date, and similar terms
related to Executive’s termination of employment or separation from service shall refer to the date
of Executive’s “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the
Code, as determined by the Company.

c. Six-Month Delay Rule. If, as of his termination date, Executive is a “specified
employee” (as determined by the Company in accordance with its guidelines established pursuant to
Treas. Reg. § 1.409A-1(i)), any amount payable to Executive upon or by reason of his termination of
employment (including expense reimbursements and in-kind benefits that are includible in income)
shall be subject to the six (6) month delay required by Section 409A(a)(2)(B)(i) of the Code;
provided, however, that such six (6) month delay shall not be required with respect to any payment
that the Company determines is not subject to Section 409A by reason of the “short-term deferral”
rule described in Treas. Reg. § 1.409A-1(b)(4), the “two-year, two-time” rule described in Treas.
Reg. § 1.409A-1(b)(9)(iii), or any other exemption. If payment of any amount is delayed by reason
of this six (6) month delay, such amount shall be paid with interest on the Company’s first pay
date for the seventh (7th) month that starts after Executive’s termination date (or, if earlier,
within 90 days after Executive’s death). Except as otherwise provided in a governing document for
an applicable benefit plan, program, or other arrangement, interest shall be calculated using the
prime rate of interest in effect at Bank of America, N.A. (or another bank designated by the
Company that is one of its principal banks) on Executive’s termination date.

d. Installments Treated as Separate Payments. For purposes of Section 409A of the
Code, except as otherwise expressly provided, each installment of payments and benefits due under
this Agreement shall be treated as a separate payment.

e. Payment Date. To the extent that any payment under this Agreement may be made
during a payment window, the date of payment shall be determined by the Company, in its sole
discretion, and not by Executive or any other individual entitled to receive the payment.

f. Expense Reimbursements and In-Kind Benefits. To the extent that any expense
reimbursement or in-kind benefit is subject to Section 409A (e.g., the expense reimbursement is
includible in income and is not required to be paid by the end of the “applicable 21/2-month period”
described in Treas. Reg. § 1.409A-1(b)(4)(i)(A)), such reimbursement or benefit shall be subject to
the conditions set forth in Treas. Reg. § 1.409A-3(i)(1)(iv). Accordingly:

(i) The amount of such expenses eligible for reimbursement, or in-kind benefits
provided, during a taxable year of Executive shall not affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other taxable year;

(ii) The reimbursement of each such expense shall be paid no later than the last day
of Executive’s taxable year next following the taxable year in which the expense was
incurred; and

(iii) The right to reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit.

g. Cash in Lieu of Benefits. Executive’s right to receive (I) tax-qualified
retirement and savings and (II) health benefits under this Agreement is subject to the terms of the
applicable plans and satisfying all applicable tax-qualification, nondiscrimination, and similar
requirements. In lieu of any benefit that the Company determines may not be provided by reason of
the immediately preceding sentence, the Company shall pay to Executive cash as follows:

(i) In lieu of tax-qualified retirement and savings benefits that the Company
determines may not be provided, the Company shall pay to Executive an amount equal
to the Company-provided contributions or benefit accruals that would have otherwise
accumulated under the applicable retirement or savings plan if not for the Company’s
determination. Such amount shall not include any payment with respect to any lost
opportunity to make pre-tax or after-tax deferrals or contributions. However, the
amount of any matching contribution that Executive would otherwise have been
entitled to receive shall be calculated based on the assumption that Executive would
have deferred or contributed the amount required to be eligible for the maximum
matching contribution payable for the applicable period. Subject to the Six-Month
Delay Rule described in subsection c, above, such amount shall be paid within thirty
(30) days after the end of the period for which such retirement or savings benefits
would otherwise have been provided.

(ii) In lieu of health benefits that the Company determines may not be provided, the
Company shall pay to Executive the amount described in this Section 7.g(ii) for each
applicable month for which Executive would otherwise be entitled to health benefits.
The amount for each month shall be equal to 167 percent of the excess of (A) the
COBRA premium for the applicable coverage under the Company’s plan for such month
(without regard to whether Executive is eligible for COBRA coverage) over (B) the
premium that an active senior executive of the Company would be required to pay for
such coverage under the Company’s plan for such month. Subject to the Six-Month
Delay Rule described in subsection c, above, such amount shall be paid monthly in
arrears.

h. Limited Indemnity for Company Error. If (and only if) Executive becomes subject to
adverse tax consequences under Section 409A of the Code as a result of (i) the Company’s failure to
administer this Agreement in accordance with its terms; (ii) the Company’s failure to administer
any “nonqualified deferred compensation plan” (within the meaning of Section 409A of the Code)
other than this Agreement in accordance with its terms or the requirements of Section 409A; or
(iii) the Company’s failure to satisfy the Section 409A document requirements for any nonqualified
deferred compensation plan other than this Agreement, the Company shall pay to Executive an amount
such that after all required income and employment tax withholding, the net amount paid to
Executive is equal to the tax imposed under Section 409A of the Code as a result of the applicable
error. Such amount shall be calculated by a certified public accounting firm selected and paid by
the Company (the “Accounting Firm”), and shall be paid no later than the last day of Executive’s
taxable year next following the taxable year in which Executive remits the applicable taxes to the
U.S. Treasury. Any determination by the Accounting Firm shall be binding upon the Company and
Executive.

	8.	 	Governing Law

This Agreement shall be construed, interpreted and governed by the law of the State of
Arizona, without giving effect to Arizona principles regarding conflict of laws. Reference to any
provision of the Code or other law shall include all regulations and other guidance of general
applicability issued thereunder, and shall be deemed to include any successor provision.

	9.	 	Miscellaneous Provisions

a. Tax Withholding. All amounts payable under this Agreement are subject to
withholding for all federal, state, and local taxes, and all other amounts relating to tax or other
payroll deductions, as the Company may reasonably determine should be withheld. Regardless of the
amount withheld, Executive shall be solely responsible for paying all required taxes (other than
the employer’s share of employment taxes) on all payments and other compensation (including imputed
compensation) and benefits provided under this Agreement.

b. Succession. This Agreement shall extend to and be binding upon Executive, his
legal representatives, heirs, and distributees, and upon the Company, its successors and assigns.

c. Entire Agreement. Other than the COC Agreement, this Agreement is the entire
agreement of the parties with respect to its subject matter and no waiver, modification, or
amendment of any of its provisions shall be valid unless in writing and signed by both parties.

d. Waiver of Breach. The waiver of breach of any term or condition of this Agreement
shall not be deemed to constitute a waiver of any other term or condition of this Agreement.

e. Severability. Each substantive provision of this Agreement is a separate
agreement, independently supported by good and adequate consideration, and is severable from the
other provisions of the Agreement. If any provision of this Agreement is held to be invalid,
illegal, or unenforceable, such provision shall be reformed to resolve the applicable issue while
still achieving the intent of the provision to the maximum extent possible, and no other provision
of the agreement shall be affected or impaired in any way. With respect to any restrictive
covenant, it is understood and agreed that if a court of competent jurisdiction or a duly
constituted arbitration panel refuses to enforce any part of such restrictive covenant because it
is unreasonable (whether as to geographic scope, duration, activity, subject, or otherwise), the
unenforceable provision shall not be void but rather shall be deemed reduced or limited to the
minimum extent necessary to permit enforcement of the covenant. For this purpose, the geographic
scope, duration, activity, and subject are divisible.

f. Forfeiture of Certain Parachute Payments.

(i) Notwithstanding any other provision of this Agreement, if paragraph (ii), below,
applies, Executive shall forfeit amounts payable to Executive under this Agreement
to the extent that a certified public accounting firm selected and paid by the
Company (the “Accounting Firm”) determines is necessary to ensure that Executive is
not reasonably likely to receive a “parachute payment” within the meaning of Section
280G(b)(2) of the Code. The Accounting Firm’s determination shall be conclusive and
binding upon the Company and Executive.

(ii) This paragraph (ii) shall apply if (and only if) (A) any payment to be made
under this Agreement is reasonably likely to result in Executive receiving a
“parachute payment” (as defined in Section 280G(b)(2) of the Code), and
(B) Executive’s forfeiture of payments due under this Agreement would result in the
aggregate after-tax amount that Executive would receive being greater than the
aggregate after-tax amount that Executive would receive if there were no such
forfeiture.

(iii) Neither the Company nor Executive shall have any discretion to determine which
payments are forfeited. The forfeiture shall apply in reverse chronological
order—e.g., the last payment in any series of payments shall be forfeited before any
part of an earlier payment is forfeited.

g. Survival. The provisions of Sections 4 (Restrictive Covenants), 5 (Termination
Rights and Responsibilities), 6 (Specific Performance), 7 (Section 409A and Cash in Lieu of
Benefits), 8 (Governing Law), and 9 (Miscellaneous Provisions) of this Agreement shall survive the
termination of Executive’s employment hereunder.

h. Headings. The headings of the sections and subsections are inserted for
convenience only and shall not be deemed to constitute a part hereof or to affect the meaning
thereof.

(Remainder of page intentionally left blank)

1

IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the
Effective Date.

	 	 	 
	AVNET, INC.	 	EXECUTIVE
	By:

Erin Lewin

Title: Sr. Vice President and

General Counsel

	 	Kevin Moriarty

2

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