Document:

Exhibit 10.1

 

CONSULTING, CONFIDENTIALITY AND PROPRIETARY
RIGHTS AGREEMENT

 

This Consulting, Confidentiality and
Proprietary Rights Agreement ("Agreement") is entered into as of the 1st day of December, 2012 (the “Effective
Date”) by and between W270, Inc. (the “Company”), and Eric Stoppenhagen(“Consultant”).

 

WHEREAS, the Company
desires to engage Consultant to provide certain services as set forth on Schedule attached hereto and as specified from time to
time by the Company.

 

NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows:

 

1. Engagement.
The Company hereby engages Consultant to perform, those duties set forth in the Schedule attached hereto and such other duties
as may be requested from time to time by the Board of Directors of the Company. Consultant hereby accepts such engagement upon
the terms and subject to conditions set forth in this Agreement.

 

2. Compensation.
For the services rendered by Consultant under this Agreement, the Company shall pay to Consultant the compensation specified in
the Schedule which shall include travel time, subject to the terms and conditions set forth in this Agreement.

 

3. Term and Survivability.
The term of this Agreement shall be for a period from the Effective Date to December 31, 2011. In addition, this Agreement may
be terminated if either party materially fails to perform or comply with this Agreement or any material provision hereof. Termination
shall be effective five (5) days after notice of such material failure to perform or comply with this Agreement or any material
provision hereof to the defaulting party if the defaults have not been cured within such five (5) day period. In the event, Consultant
is compelled to spend time as relates to his duties under this Agreement after the termination of this Agreement, the Consultant
shall be paid at a rate of $350 per hour. Upon termination of this Agreement the following sections of this Agreement shall survive
such termination: Sections 3, 5, 6, 7, 8, 10, 12 13 and 20.

 

4. Costs and
Expenses of Consultant’s Performance. Except as set forth on the Schedule, all costs and expenses of Consultant’s
performance hereunder shall be borne by the Consultant.

 

5. Taxes.
As an independent contractor, Consultant acknowledges and agrees that it is solely responsible for the payment of any taxes and/or
assessments imposed on account of the payment of compensation to, or the performance of services by Consultant pursuant to this
Agreement, including, without limitation, any unemployment insurance tax, federal and state income taxes, federal Social Security
(FICA) payments, and state disability insurance taxes. The Company shall not make any withholdings or payments of said taxes or
assessments with respect to amounts paid to Consultant hereunder; provided, however, that if required by law or any governmental
agency, the Company shall withhold such taxes or assessments from amounts due Consultant, and any such withholding shall be for
Consultant's account and shall not be reimbursed by the Company to Consultant. Consultant expressly agrees to make all payments
of such taxes, as and when the same may become due and payable with respect to the compensation earned under this Agreement.

 

6. Confidentiality.
Consultant agrees that Consultant will not, except when required by applicable law or order of a court, during the term of this
Agreement or thereafter, disclose directly or indirectly to any person or entity, or copy, reproduce or use, any Trade Secrets
(as defined below) or Confidential Information (as defined below) or other information treated as confidential by the Company known,
learned or acquired by the Consultant during the period of the Consultant's engagement by the Company. For purposes of this Agreement,
"Confidential Information" shall mean any and all Trade Secrets, knowledge, data or know-how of the Company, any of its
affiliates or of third parties in the possession of the Company or any of its affiliates, and any nonpublic technical, training,
financial and/or business information treated as confidential by the Company or any of its affiliates, whether or not such information,
knowledge, Trade Secret or data was conceived, originated, discovered or developed by Consultant hereunder. For purposes of this
Agreement, "Trade Secrets" shall include, without limitation, any formula, concept, pattern, processes, designs, device,
software, systems, list of customers, training manuals, marketing or sales or service plans, business plans, marketing plans, financial
information, or compilation of information which is used in the Company's business or in the business of any of its affiliates.
Any information of the Company or any of its affiliates which is not readily available to the public shall be considered to be
a Trade Secret unless the Company advises Consultant in writing otherwise. Consultant acknowledges that all of the Confidential
Information is proprietary to the Company and is a special, valuable and unique asset of the business of the Company, and that
Consultant's past, present and future engagement by the Company has created, creates and will continue to create a relationship
of confidence and trust between the Consultant and the Company with respect to the Confidential Information. Furthermore, Consultant
shall immediately notify the Company of any information which comes to its attention which might indicate that there has been a
loss of confidentiality with respect to the Confidential Information. In such event, Consultant shall take all reasonable steps
within its power to limit the scope of such loss.

 

7. Return of
the Company’s Proprietary Materials. Consultant agrees to deliver promptly to the Company on termination of this Agreement
for whatever reason, or at any time the Company may so request, all documents, records, artwork, designs, data, drawings, flowcharts,
listings, models, sketches, apparatus, notebooks, disks, notes, copies and similar repositories of Confidential Information and
any other documents of a confidential nature belonging to the Company, including all copies, summaries, records, descriptions,
modifications, drawings or adaptations of such materials which Consultant may then possess or have under its control. Concurrently
with the return of such proprietary materials to the Company, Consultant agrees to deliver to the Company such further agreements
and assurances to ensure the confidentiality of proprietary materials. Consultant further agrees that upon termination of this
Agreement, Consultant's, employees, consultants, agents or independent contractors shall not retain any document, data or other
material of any description containing any Confidential Information or proprietary materials of the Company.

 

8. Assignment
of Proprietary Rights. Other than the Proprietary Rights listed on the Schedule attached hereto, if any, Consultant hereby
assigns and transfers to the Company all right, title and interest that Consultant may have, if any, in and to all Proprietary
Rights (whether or not patentable or copyrightable) made, conceived, developed, written or first reduced to practice by Consultant,
whether solely or jointly with others, during the period of Consultant's engagement by the Company which relate in any manner to
the actual or anticipated business or research and development of the Company, or result from or are suggested by any task assigned
to Consultant or by any of the work Consultant has performed or may perform for the Company.

 

Consultant acknowledges
and agrees that the Company shall have all right, title and interest in, among other items, all research information and all documentation
or manuals related thereto that Consultant develops or prepares for the Company during the period of Consultant's engagement by
the Company and that such work by Consultant shall be work made for hire and that the Company shall be the sole author thereof
for all purposes under applicable copyright and other intellectual property laws. Other than the Proprietary Rights listed on the
Schedule attached hereto, Consultant represents and covenants to the Company that there are no Proprietary Rights relating to the
Company's business which were made by Consultant prior to Consultant's engagement by the Company. Consultant agrees promptly to
disclose in writing to the Company all Proprietary Rights in order to permit the Company to claim rights to which it may be entitled
under this Agreement. With respect to all Proprietary Rights which are assigned to the Company pursuant to this Section 8, Consultant
will assist the Company in any reasonable manner to obtain for the Company's benefit patents and copyrights thereon in any and
all jurisdictions as may be designated by the Company, and Consultant will execute, when requested, patent and copyright applications
and assignments thereof to the Company, or other persons designated by the Company, and any other lawful documents deemed necessary
by the Company to carry out the purposes of this Agreement. Consultant will further assist the Company in every way to enforce
any patents, copyrights and other Proprietary Rights of the Company.

 

9. Trade Secrets
of Others. Consultant represents to the Company that its performance of all the terms of this Agreement does not and will not
breach any agreement to keep in confidence proprietary information or trade secrets acquired by Consultant in confidence or in
trust prior to its engagement by the Company, and Consultant will not disclose to the Company, or induce the Company to use, any
confidential or proprietary information or material belonging to others. Consultant agrees not to enter into any agreement, either
written or oral, in conflict with this Agreement.

 

10. Other Obligations.
Consultant acknowledges that the Company, from time to time, may have agreements with other persons which impose obligations or
restrictions on the Company regarding proprietary rights made or developed during the course of work hereunder or regarding the
confidential nature of such work. Consultant agrees to be bound by all such obligations and restrictions and to take all action
necessary to discharge the obligations of the Company hereunder.

 

11. Independent
Contractor. Consultant shall not be deemed to be an employee or agent of the Company for any purpose whatsoever. Consultant
shall have the sole and exclusive control over its employees, consultants or independent contractors who provide services to the
Company, and over the labor and employee relations policies and policies relating to wages, hours, working conditions or other
conditions of its employees, consultants or independent contractors.

 

12. Non-Solicit.
Consultant and the Company will not, during the term this Agreement and for one year thereafter, directly or indirectly (whether
as an owner, partner, shareholder, agent, officer, director, employee, independent contractor, consultant, or otherwise) with or
through any individual or entity: (i) employ, engage or solicit for employment any individual who is, or was at any time during
the twelve-month period immediately prior to the termination of this Agreement for any reason, an employee of the other party,
or otherwise seek to adversely influence or alter such individual's relationship with the other party; or (ii) solicit or encourage
any individual or entity that is, or was during the twelve-month period immediately prior to the termination of this Agreement
for any reason, a customer or vendor of the other party to terminate or otherwise alter his, her or its relationship with the other
party or any of its affiliates. Section 12 does not apply to individuals or entities known to the Consultant previous to the Effective
Date.

 

13. Equitable
Remedies. In the event of a breach or threatened breach of the terms of this Agreement by Consultant, the parties hereto acknowledge
and agree that it would be difficult to measure the damage to the Company from such breach, that injury to the Company from such
breach would be impossible to calculate and that monetary damages would therefore be an inadequate remedy for any breach. Accordingly,
the Company, in addition to any and all other rights which may be available, shall have the right of specific performance, injunctive
relief and other appropriate equitable remedies to restrain any such breach or threatened breach without showing or proving any
actual damage to the Company.

 

14. Governing
Law. This Agreement shall be governed, construed and interpreted in accordance with the internal laws of the State of California.
In the event a judicial proceeding is necessary, the sole forum for resolving disputes arising under or relating to this Agreement
are the Municipal and Superior Courts for the County of Orange, California or the Federal District Court for the Central District
of California and all related appellate courts, and the parties hereby consent to the jurisdiction of such courts, and that venue
shall be in Orange County, California.

 

15. Entire Agreement:
Modifications and Amendments. The terms of this Agreement are intended by the parties as a final expression of their agreement
with respect-to such terms as are included in this Agreement and may not be contradicted by evidence of any prior or contemporaneous
agreement. The Schedule referred to in this Agreement is incorporated into this Agreement by this reference. This Agreement may
not be modified, changed or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted,
except by written instrument signed by the parties or by their agents duly authorized in writing or as otherwise expressly permitted
herein.

 

16. Attorneys
Fees. Should any party institute any action or proceeding to enforce this Agreement or any provision hereof, or for damages
by reason of any alleged breach of this Agreement or of any provision hereof, or for a declaration of rights hereunder, the prevailing
party in any such action or proceeding shall be entitled to receive from the other party all costs and expenses, including reasonable
attorneys' fees, incurred by the prevailing party in connection with such action or proceeding.

 

17. Prohibition
of Assignment. This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by Consultant
without the prior written consent of the Company. Any assignment of rights or delegation of duties or obligations hereunder made
without such prior written consent shall be void and of no effect.

 

18. Binding Effect:
Successors and Assignment. This Agreement and the provisions hereof shall be binding upon each of the parties, their successors
and permitted assigns.

 

19. Validity.
This Agreement is intended to be valid and enforceable in accordance with its terms to the fullest extent permitted by law. If
any provision of this Agreement is found to be invalid or unenforceable by any court of competent Jurisdiction, the invalidity
or unenforceability of such provision shall not affect the validity or enforceability of all the remaining provisions hereof.

 

20. Indemnification.
The Company shall indemnify, defend and hold harmless Consultant from and against any and all liability, loss, damage, expense,
claims or suits arising out of: (i) Company’s breach of this Agreement, including any representations warranty contained
herein; or (ii) the Services provided by Consultant, provided such claim does not in any manner arise from Consultant’s grossly
negligent or willful act or omission. Additionally, Consultant will be covered under the Director’s and Officer’s policy
of the Company. The Company will provide evidence of coverage to the Consultant which shall be a minimum of one million dollar
coverage paid in full for the year.

 

21. Notices.
All notices and other communications hereunder shall be in writing and, unless otherwise provided herein, shall be deemed duly
given if delivered personally or by telecopy or mailed by registered or certified mail (return receipt requested) or by Federal
Express or other similar courier service to the parties at the following addresses or (at such other address for the party as shall
be specified by like notice)

 

(i) If to the Company:

 

 

 

 

Office:

 

Fax:

 

(ii) If to the Consultant:

 

 

Any such notice, demand or other communication
shall be deemed to have been given on the date personally delivered or as of the date mailed, as the case may be.

 

 

IN WITNESS WHEREOF,
the parties hereto have executed this Consulting, Confidentiality, and Proprietary Rights Agreement as of the Effective Date written
above.

 

Eric Stoppenhagen

Consultant

 

 

By: ___/s/ Eric Stoppenhagen___________

	 	 	Eric Stoppenhagen

 

 

W270, Inc.

The Company

 

 

By: ___/s/ Eric Stoppenhagen ___________

	 	 	Name:	Eric Stoppenhagen
	 	Title: Chairman of the Board

 

     

     

    

 

Schedule

1. DUTIES

A. Financial Duties
required to maintain a public company

 

		§	Maintain accurate books and records of the Company including accounting.

		§	Oversee reviews and audits.

		§	Timely make appropriate and necessary filings.

		§	Handle all AP and AR related matters. 

		§	Oversee tax matters.

		§	Oversee legal matters as related to the operation of the shell.

 

		B.	Interim President and Secretary Duties

 

		§	Serve as interim President, CFO and Secretary.

		§	Perform the duties as set forth under the Company’s By-Laws.

 

2.SCHEDULE AND COMITTMENT
OF TIME:

If at any time
during the performance of this contract any phases of the required tasks appear to be impossible of execution or if any phase cannot
be completed on schedule, it is agreed that Consultant will notify Company within one (1) day of such determination. At the time
of such notification Consultant shall explain to Company why a particular task is impossible to complete and propose alternative
procedures for achieving the desired result.

 

3.REPORTING SCHEDULE:

Consultant shall
report regularly, and not less frequent than once every month, to the Company his progress on the tasks enumerated above.

 

4.COMPENSATION AND
PAYMENT TERMS:

 

The Consultant
shall be paid at a rate of $5,000 per quarter payable on the first business day of the month. In the event the Consultant is requested
to perform services outside the Duties required to maintain a public shell, the Consultant shall be paid on a transactional basis.
Hourly Services shall be pre-approved in advanced by email from any member of the Board of Directors.

 

5EXPENSES:

Company agrees to reimburse
Consultant for reasonably necessary travel, phone and office expenses other then rent. However, should such expenses exceed $500
in any given calendar month; such expenses shall be pre-approved in advance by Company in order to qualify to reimbursement. An
email authorization by the Chairman of Company shall be deemed a valid approval.ex10-30.htm

Exhibit 10.30

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of the 1st day of April, 2013, (the “Effective Date”) by and between TOWER FINANCIAL CORPORATION, an Indiana corporation, and MICHAEL D. CAHILL (the “Executive”).

Recitals

	
  

	
1.

	
The Company is engaged in the business of operating a bank.

	
  

	
2.

	
The Executive has demonstrated his ability to serve as President and Chief Executive Officer.

	
  

	
3.

	
The parties desire to set forth in writing the terms and conditions upon which the Executive’s employment with the Company will continue.

Agreement

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions set forth herein, the Company and the Executive agree as follows:

ARTICLE I

Employment Term

Section 1.01.  Term.   The term of this Agreement (the “Employment Term”) shall be for a period of two (2) year(s), commencing on the Effective Date and terminating on April 1, 2015.  Notwithstanding the foregoing, the Employment Term is subject to termination prior to the expiration thereof under the terms and conditions set forth in Article VIII.

Section 1.02.  Renewal.  The term of this Agreement shall automatically be renewed for successive terms of equal duration to the initial Employment Term (which period shall also be referred to as the “Employment Term”), unless either party provides the other written notice of its intent not to renew for a successive term at least sixty (60) days prior to the last day of the then current term.

ARTICLE II

Employment

During the Employment Term, the Executive shall be employed by the Company as its President and Chief Executive Officer or in such other capacity as shall be approved by the Board of Directors of the Company.  In such capacity, the Executive shall have the duties, authority and powers granted to the Executive by the Company’s Board of Directors from time to time.

ARTICLE III

Devotion to Duties

During the Employment Term, the Executive shall devote his full time, attention, skill and effort to the operations of the Company and shall not engage in any other business activity requiring any substantial amount of his time (whether or not such business activity is pursued for gain, profit, or pecuniary advantage).  With prior written approval from the Chairman of the Board of Directors of the Company, the Executive may engage in other business interests which materially prevent the Executive from performing his contemplated services hereunder on behalf of Company.

 

  

  

  

ARTICLE IV

Regular Compensation

The Company shall pay to the Executive as compensation for his services and for his covenants and other obligations hereunder an annual base salary (the “Salary”) in the amount of Two Hundred Fifty Eight Thousand Five Hundred Dollars ($258,500.00), payable in accordance with the regular and customary payroll practices of the Company.  The Salary may be increased from time to time by action of the Compensation Committee of the Board of Directors of the Company.

ARTICLE V

Bonus Compensation

The Compensation Committee of the Board of Directors of the Company may authorize the payment to the Executive of additional compensation by way of salary, bonus, or otherwise, as it deems appropriate, during the term of this Agreement or any extension hereof.  All compensation shall be subject to customary withholding and other employment taxes required with respect to compensation paid by a corporation to an employee.

ARTICLE VI

Stock Based Compensation

The Executive shall be eligible to participate in such stock based compensation programs or related incentive plans as may be adopted by the Company from time to time; provided, however, the Company reserves the right to determine the number of stock grants, if any, and the terms and type of such grant.

ARTICLE VII

Expenses and Fringe Benefits

The Company shall reimburse the Executive for all ordinary and necessary business expenses incurred by him while carrying out his employment responsibilities under this Agreement.  The Executive shall be entitled to participate in such vacation policies, medical, dental, life and disability insurance programs; 401(k), profit sharing and any other retirement plans, and other fringe benefit plans or programs as the Company from time to time shall establish for its senior management and/or other full time employees, provided he is otherwise qualified to participate in such plans or programs.  The Company retains the right to establish limits on the types or amounts of business expenses that the Executive may incur and to abolish or alter the terms of any fringe benefit plan or program that it may establish.

ARTICLE VIII

Termination

Section 8.01.  Reasons for Termination.  The Employment Term of the Executive shall be terminated upon the occurrence of any of the following events:

(a)           Immediately upon the death of the Executive.

 

  

  

  

(b)           At the Company’s option, upon the Executive’s (i) violation of a material company policy or failure to perform any of the material duties or obligations under this Agreement; or (ii) upon any dishonesty or any kind of willful misconduct of the Executive, including but not limited to, theft of or other unauthorized personal use of company funds (termination under (i) or (ii) shall mean “for Cause”).  The Executive may be terminated under paragraph 8.01(b)(i) only following thirty (30) days’ written notice to the Executive explaining the basis of the termination and his failure to cure such breach within thirty (30) days of the date of the Company’s notice.  The Executive may be terminated under paragraph 8.01(b)(ii) only following ten (10) days’ written notice to the executive of the basis for the termination and an opportunity to dispute the same.

(c)           At the Company’s option, if the Executive shall suffer a permanent disability.  For purposes of this Agreement, “permanent disability” shall be defined to mean if Executive becomes eligible to receive benefits under company’s long term disability plan.  If there is no such long term disability plan, Executive will be deemed to be disabled if the Executive is disabled for purposes of the federal Social Security Act.

(d)           At the Company’s option, without Cause, upon thirty (30) days’ prior written notice.

(e)           At the Executive’s option, without cause, at any time.

(f)           At the Executive’s option, upon the Company’s breach of any of its material obligations under this Agreement or for Good Reason; provided that Executive has given the Company at least ten (10) days’ prior written notice of the nature of such breach and the Company has failed to cure such breach within a thirty (30) day period.  For purposes herein, “Good Reason” means without the Executive’s express written consent, the assignment to the Executive of any duties or responsibilities inconsistent with the Executive’s position, or a material change in the Executive’s reporting responsibilities, titles, or offices as described under Article II, or any removal of the Executive from, or any failure to re-elect the Executive to, and such positions, except in connection with the termination of the Executive for Cause, or his disability, retirement, or death.

 

Section 8.02.  Compensation Upon Termination.

(a)           Should the employment of the Executive be terminated under subsection (a) or (c) of Section 8.01 of this Agreement, the Company shall pay to the Executive (or his personal representative), a sum equal to the aggregate amount of Salary that was paid to the Executive under this Agreement for the one-month period preceding such date of termination, excluding any payments under Article V.

(b)           Should the employment of the Executive be terminated under subsection (b) or (e) of Section 8.01 of this Agreement, the Executive shall be paid his Salary up to the date of termination and any bonus compensation accrued but unpaid for any prior Employment Year, which amount should be paid in a single sum payment.

(c)           Should the employment of the Executive be terminated under subsection (d) or (f) of Section 8.01 of this Agreement, the Company shall pay to the Executive, a sum equal to two (2) years’ Salary at the then-effective rate paid to Executive.

(d)           Should the employment of the Executive be terminated under subsection (a), (c), (d), or (f) of Section 8.01 of this Agreement, the Company shall pay to the Executive (or his personal representative) in addition to the Salary specified in subsection (a) or (c), as applicable, of this Section 8.02, any bonus compensation accrued but unpaid for any prior Employment Year.  Except for a termination as a result of Executive’s death, no pro-rated portion of any bonus compensation for the current Employment Year shall be payable.  In the event of death, Executive’s estate shall be eligible to receive a pro-rated bonus, subject to the terms of the bonus program.

(e)           If the Company provides notice under Section 1.02 of its intent not to renew without Cause, then the Executive shall receive one hundred percent (100%) of the amount determined under Section 8.02(c) provided, however, that the Executive must continue to work until the last day of the Employment Term, which amount should be paid in a single sum payment.

 

  

  

  

(f)           Payments to the Executive under this Section 8.02 shall be considered severance pay in consideration of the Executive’s past service and in consideration of his continued service from the date hereof.  The Company may, at its discretion, withhold from such payments any federal, state, city, county, or other taxes.  In the event of termination of the employment of the Executive for any reason described in Section 8.01 of this Agreement, the severance pay provided for by this Section 8.02 shall constitute the entire obligation of the Company to the Executive in full settlement of any claim under law or in equity that the Executive might otherwise assert against the Company or any of its employees, officers, or directors on account of such termination, except for any compensation or other payments to which the Executive may be entitled to under any termination benefits or similar agreement then in effect between the Company and the Executive.

(g)           In order to receive any benefit under this Section 8.02, Executive must execute a Release Agreement in the form attached as Exhibit A.  Such release must be executed within twenty one (21) days after Executive’s termination of employment and Executive shall have seven (7) days after such execution to revoke such release.

(h)           Notwithstanding any of the foregoing, upon termination, the Executive shall be entitled to any accrued but unused vacation days in accordance with Company policy.

(i)           Any payments due under this section 8.02 shall be payable in a single sum payment, and should be paid on the 30th day following the Executive’s termination of employment; provided, however, with respect to the payment of any bonus for a prior Employment Year such bonus shall be payable on the later of the thirtieth (30th) day following the Executive’s termination of employment or the sixtieth (60th) day after the end of the prior Employment Year; provided, further, with respect to the payment of a bonus for the current Employment Year in the event of an Employee’s death, such bonus shall be payable on the sixtieth (60th) day after the end of the current Employment Year.

(j)           For purposes of this Agreement, the term Employment Year shall mean the same as the Company’s fiscal year which commences each January 1st and ends each December 31st.

Section 8.03.  Reimbursement for Certain Litigation Expenses.  In the event of litigation to determine whether the Executive’s employment was properly terminated under subsection (b) or (f) of Section 8.01, the prevailing party shall be entitled to recover all reasonable costs and expenses, including reasonable attorneys’ fees, incurred in connection with such litigation.

Section 8.04.  Clawback.  Notwithstanding the foregoing:

(a)           In the event that, following the Executive’s termination (other than for Cause), within six (6) months following the date of termination, it is later discovered that Cause to terminate the Executive existed, the Executive shall forfeit any right to payments or benefits under this Agreement and, at the discretion of the Board, shall repay any payments made by the Company to the Executive pursuant to this agreement within 30 days following the determination by the Board that Cause existed, upon receipt of written notice of the same.

(b)           If the Company is required to prepare an accounting restatement due to material non-compliance of the Company, as a result of misconduct by the Executive, with any financial reporting requirement under any applicable laws, the Executive shall reimburse the Company for all amounts received under any incentive compensation plans, programs or arrangement from Company during the 12 month period preceding the date of such restatement.

(c)           The Executive agrees that the Company shall be entitled to recovery of its reasonable costs in enforcing any right described in this Section 8.04.

  

  

  

ARTICLE IX

Confidential Business Information

The Executive agrees and covenants that all confidential information regarding the practices and procedures of the Company and its affiliates, their methods of marketing, know-how, trade information, trade secrets, customer or client lists, licensing arrangements, accounts and requirements, and other information regarding the affairs of the Company and its affiliates (collectively, the “Confidential Business Information”) shall be received and held in the strictest confidence.  The Executive agrees not to divulge any such Confidential Business Information to any person or entity except as authorized in the normal execution of assigned duties on behalf of the Company, without the prior consent of the Company.  The Executive further agrees to surrender to the Company any and all documents and records in whatever form that may be in his possession or control containing Confidential Business Information upon the expiration or termination of the Employment Term.  The provisions of this Article IX shall survive any termination or expiration of this Agreement.

ARTICLE X

Non-Competition

Section 10.01.  Non-Competition.

(a)           During the Employment Term and for a period of two (2) year(s) immediately following any termination of the Employment Term pursuant to Section 8.01 of this Agreement (except subsection (a) or (c) of Section 8.01), the Executive shall not, directly or indirectly, anywhere within the following counties: Indiana counties (Allen, Adams, DeKalb, Huntington, Kosciusko, Noble, Wells, Whitley) or Ohio counties (Defiance, Paulding, Van Wert), have any material (defined for purposes of this Section to include any investment representing one percent (1%) or more of the equity interest of any entity described in this Section) investment in, or engage, directly or indirectly, whether as an individual or sole proprietor or as owner, partner, principal, shareholder, officer, director, manager, agent, consultant, formal or informal advisor, or by or though the lending of any form of assistance, in any business offering products or services the same as or competitive with the products or services that, during the Employment Term, are (or are planned to be) offered or supplied by the Company or its subsidiaries.

(b)           An Executive may request in writing that the Company allow Executive to accept a position with another employer if his duties or responsibilities with such employer are materially different than any of those duties performed for the Company during the Employment Term.  The Company shall respond to any written request within ten (10) business days of its receipt; provided such request is sent by U.S. certified mail.  The Company must use its reasonable discretion to determine whether such duties are materially different.  The Company may, from time to time, request that the Executive certify in writing that his duties for the new employer have not changed.  If the Company fails to respond, the request, as submitted, shall be deemed approved.

(c)           During the Employment Term for a period of two (2) years immediately following any termination of the Employment Term pursuant to Section 8.01 of this Agreement (except subsection (a) or (c) of Section 8.01), the Executive shall not, directly or indirectly, anywhere within the following counties: Indiana counties (Allen, Adams, DeKalb, Huntington, Kosciusko, Noble, Wells, Whitley) or Ohio counties (Defiance, Paulding, Van Wert), be employed in any capacity that is similar to or the same as any capacity Executive held with Company during Executive’s last five (5) years of employment with Company.

 

  

  

  

(d)           During the Employment Term and for a period of two (2) years immediately following any termination of the Employment Term pursuant to Section 8.01 of this Agreement (except subsection (a) or (c) of Section 8.01), the Executive shall not, directly or indirectly, anywhere within the following counties: Indiana counties (Allen, Adams, DeKalb, Huntington, Kosciusko, Noble, Wells, Whitley) or Ohio counties (Defiance, Paulding, Van Wert) as an employee, consultant, or in any other relationship engage in assisting any business or any entity offering products or services the same as or competitive with the products and services that, during the Employment Term, are, or plan to be, offered or supplied by the Company or its subsidiaries, in any capacity wherein Executive is capable of utilizing the trade secrets, confidential information, or other proprietary information of the Company in competition with the Company.

Section 10.02.  Non-Solicitation.  During the Employment Term and for a period of two (2) year(s) immediately following any termination of the Employment Term pursuant to Section 8.01 of this Agreement (except subsection (a) or (c) of Section 8.01), the Executive shall not, directly or indirectly, (i) solicit, take away, hire, employ, or endeavor to employ any person employed by the Company, or (ii) solicit, take away, or attempt to take away any of the existing or prospective customers or clients, vendors, or licensors of the Company or any of its affiliates as of the date of termination for the purpose of conducting any business which directly or indirectly provides financial services similar in nature to the financial services provided by Tower Bank & Trust Company.  As used herein, the term “prospective customers or clients” shall mean individuals or entities whom the Company or its affiliates have contacted within the twelve (12) months immediately preceding the termination of the Employment Term for the purpose of conducting business with the Company or such affiliate.

Section 10.03.  Specific Enforcement.  The Executive acknowledges that any violation of any provision of this Article X by him will cause irreparable damage to the Company, that such damage will be incapable of precise measurement, and that, as a result, the Company will not have an adequate remedy at law to redress the harm which such violation will cause.  Therefore, in the event of any violation of any provision of this Article by the Executive, he agrees that in addition to all other remedies that the Company may have at law or in equity, the Company shall be entitled to injunctive relief, including, without limitation, temporary restraining orders and temporary injunctions to restrain any violation of the Article.  If a court of competent jurisdiction finds that the Executive has violated any of the restrictions set forth in this Article, then the period of all restrictions set forth in this Article automatically shall be extended by the number of days that the court determines the Executive to have been in violation of such restriction.  In addition to other relief to which it shall be entitled, the Company shall be entitled to recover from the Executive the reasonable costs and reasonable attorneys’ fees incurred by the Company in seeking enforcement of this Article.  In addition, if the Executive should breach section 10.01 or 10.02, as determined by a court of competent jurisdiction, Executive shall repay any and all benefits paid under Section 8.02 or Section 12.01(b).

ARTICLE XI

General

Section 11.01.  Severability.  Should any clause, portion or section of this Agreement be unenforceable or invalid for any reason, such unenforceability or invalidity shall not affect the enforceability or validity of the remainder of this Agreement.  Should any particular covenant in this Agreement be held unreasonable or unenforceable for any reason, including, without limitation, the time period, geographical area, and scope of activity covered by such covenant, then such covenant shall be given effect and enforced to whatever extent would be reasonable and enforceable.

Section 11.02.  Assignment; Successors in Interest.  This Agreement, being personal to the Executive, may not be assigned by him.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, and the heirs, executors, and personal representatives of the Executive.

 

  

  

  

Section 11.03.  Successors of the Company.  The Company will require any successor (whether director or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from the Company in the same amount and on the same terms as the Executive would be entitled hereunder if the Executive terminated the Executive’s employment for Good Reason, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed as the Date of Termination.  As used in this Agreement, “Company” as hereinbefore and/or assets as aforesaid which executes and delivers the agreement provided for in this Article 11.03 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.

Section 11.04.  Governing Law.  This Agreement and the performance of the parties under this Agreement shall be construed in accordance with the laws of Indiana, and any action or proceeding that may be brought, arising out of, in connection with, or by reason of this Agreement shall be governed by the laws of Indiana, to the exclusion of the law of any other forum, and regardless of the jurisdiction in which the action or proceeding may be instituted.

Section 11.05.  Waiver.  Failure to insist upon strict compliance with any of the terms, covenants, or conditions of this Agreement shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power at any other time or times.

Section 11.06.  Modification and Entire Agreement.  No modification, amendments, extension or alleged waiver of this Agreement or any provision thereof will be binding upon the Executive or the Company unless in writing and signed by the Executive and a duly authorized officer of the Company.  From and after the Effective Date, this Agreement and any termination benefits agreement or similar agreement between the Company and the Executive shall constitute the entire employment arrangement between the Executive and the Company and shall supersede and replace any and all prior agreements and understandings, written or oral, relative to such employment.

Section 11.07.  Notices.  All notices and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been properly given if delivered by hand, sent by telecopy, or mailed, certified or registered mail with postage and fees prepaid:

 

	 	If to the Company, to:	Tower Bank & Trust Company	 
	 	 	
116 East Berry Street, Suite 100

Fort Wayne, Indiana, 46802

	 
	 	 	 	 
	 	If to the Executive, to:	Mr. Michael D. Cahill	 
	 	 	
5031 Sweetwater Place

Fort Wayne, Indiana, 46835

	 

 

or to such other person or address as the party to whom such notice or communication is to be given shall have notified the other party in accordance with Section 11.06.  Any mailed communication shall be deemed to have been given on the third “business day” (such term excluding, for purposes of this Agreement, Saturdays, Sundays, and legal holidays) after the mailing.  Any communication sent by telecopy shall be deemed to have been given on the date receipt of the telecopy transmission is confirmed.

  

  

  

 

ARTICLE XII

Change in Control

 

Section 12.01.  Termination after Change in Control Benefit.  If within four (4) months before or twenty four (24) months and one (1) day after a Change of Control of the Company as defined in Section 12.01(a), the Company shall terminate the Executive’s employment other than pursuant to Section 8.01(a), (b) or (c) hereof, or give notice under Section 1.02 of its intent not to renew without Cause, or if the Executive shall terminate his employment for Good Reason, then in any of such events, the Company shall pay to the Executive a benefit as defined in subsection 12.01(b).

(a)           Change of Control.  The term Change of Control shall have the following meaning:

(i)           A reorganization, merger, consolidation, or other form of corporate transaction or series of transactions, in each case, with respect to which persons who were the stockholders of the Company immediately prior to such reorganization, directly or indirectly, own less than fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged, or consolidated entity’s then outstanding voting securities;

(ii)           A liquidation or dissolution of the Company;

(iii)           The acquisition by any person, entity or “group” within the meaning of Section 13 (d) or 14(d)(2) of the Securities Exchange Act of 1934, (excluding any employee benefit plan of the Company or its subsidiaries which acquires beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of more than fifty percent (50%) of either the then outstanding shares of common stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally in the election of directors; or

 

(iv)           As the result of, or in connection with, any tender or exchange offer, merger, consolidation or other business combination, sale, or disposition of all or substantially all of the Company’s assets, or contested election, or any combination of the foregoing transactions (a “Transaction”), the persons who were the directors of the Company immediately before the Transaction shall cease to constitute a majority of the Board of Directors of the Company or any successor of the Company.

(b)           Amount.  Upon termination of the Executive’s employment under the circumstances described in this section 12.01, the Executive will receive the amount payable under Section 8.02(c), plus an amount equal to two (2) times his Average Bonus.  For purposes herein, “Average Bonus” shall be determined by adding the Executive’s bonuses awarded by the Company under its incentive plan for the three (3) complete calendar years prior to his termination (or such fewer complete years if he has been employed less than three (3) complete calendar years) and dividing by three (or such fewer complete years if he has been employed less than three (3) complete calendar years).

No other benefits or amounts shall be payable under Section 8.02.

(c)           Time of Payment.  Any amount owed under this article XII shall be paid in a single sum payment, which payment shall be made on the 30th day following the Executive’s termination of employment.

(d)           Limitation of Benefit.  Notwithstanding anything to the contrary in this Agreement, if there are payments to the Executive which constitute “parachute payments,” as defined in Section 280G of the Code, then the payments made to the Executive shall be limited to the greater of (x) One Dollar ($1.00) less than the amount which would cause the payments to the Executive (including payments to the Executive which are not included in this Agreement) to be subject to the excise tax imposed by Section 4999 of the Code, and (y) the payments to the Executive (including payments to the Executive which are not included in this Agreement) after taking into account the excise tax imposed by section 4999 of the Code.  The calculations shall be done by an outside party directed by the Company.

(e)           Release.  Such release must be executed within twenty one (21) days after Executive’s termination of employment and Executive shall have seven (7) days after such execution to revoke such release.

 

  

  

  

(f)           Attorney’s Fees.  To the extent that the Executive prevails in a court of competent jurisdiction regarding such dispute, the Company shall reimburse Executive his reasonable attorney’s fees and costs incurred in such action.  Any amounts to be reimbursed hereunder will be paid to the Executive within fifteen (15) days of a written consent for the same.

ARTICLE XIII

409A

Section 13.01.  Special Provision Regarding Section 409A of the Internal Revenue Code.  This Agreement is intended to comply with the applicable requirements of IRC Section 409A and shall be limited, construed, and interpreted in accordance with such intent (including final regulations or any other guidance).  Notwithstanding anything hereunder to the contrary, any provision to the Agreement that is inconsistent with said Section 409A shall be deemed to be amended to comply with IRC Section 409A and to the extent such provision cannot be amended to comply with IRC Section 409A, such provision shall be null and void.

Section 13.02.  Definition of Separation of Service.  The terms “termination of employment” or words to that affect mean the same as a complete “separation from service” within the meaning of IRC 409A.

Section 13.03.  Compliance with Section 409A.  Notwithstanding anything herein to the contrary, (i) if at the time of Employee’s Separation from Service, Employee is a “specified employee” as defined in §409A of the Code and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such Separation from Service is necessary in order to prevent any accelerated or additional tax under §409A of the Code, then Tower will defer the commencement of the payment of any such amounts or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Employee) until the date that is six (6) months and one (1) day after Employee’s Separation from Service (or the earliest date as is permitted under §409A of the Code) and (ii) if any other payments of money or other benefits due to Employee hereunder could cause the application of an accelerated or additional tax under §409A of the Code such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under §409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by Tower, that does not cause such an accelerated or additional tax. The Employee will be considered to have terminated employment hereunder for purposes of receiving payments subject to §409A of the Code only if such termination of employment constitutes a “Separation from Service” within the meaning of §409A of the Code.  “Specified Employee” means a key employee as defined in IRC §416(i) without regard to Paragraph 5 thereof. For purposes of determining whether an Employee is a Specified Employee hereunder, such determination shall be made as of the December 31st preceding the date an Employee is due a payment hereunder.

 

IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

 

	NAME	 	TOWER FINANCIAL CORPORATION	 
	 	 	 	 	 	 
	By:	
/s/ Michael D. Cahill 

	 	By:	
/s/ Keith Busse

	 
	 	
Michael D. Cahill 

	 	 	Keith Busse	 
	 	
 

 

(“Executive”)  

	 	 	

Chairman, Board of Directors

 

(“Company”)

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