Tatum CFO Partners, LLP Interim Executive Services Agreement
EXHIBIT 10.3
Xxxxx CFO Partners, LLP
Interim Executive Services Agreement
December 16, 2004
Xx. Xxxxxx X. Xxxxxxxxxxxx
Chairman of the Board & Chief Executive Officer Mayor’s Jewelers, Inc
00000 XX 00xx Xxxxxx
Xxxxxxx, XX 00000
Dear Andruskevich:
Xxxxx CFO Partners, LLP (“Xxxxx”) understands that Mayor’s Jewelers, Inc. (“the Company”) desires to engage a partner of Xxxxx to serve as interim chief financial officer. This Interim Executive Services Agreement sets forth the conditions under which such services will be provided.
Services; Fees
Xxxxx will make available to the Company Xxxxx Xxxxxxxx (the “Xxxxx Partner”), who will serve as the Interim Chief Financial Officer of the Company. The Xxxxx Partner will become an employee and an appointed officer of the Company and subject to the supervision and direction of the CEO of the Company, the board of directors of the Company, or both. Xxxxx will have no control or supervision over the Xxxxx Partner.
The Company will pay the Xxxxx Partner directly a salary of $24,000 a month.
In addition, the Company will pay directly to Xxxxx a fee of $6,000 monthly as partial compensation for resources provided.
The Company will have no obligation to provide the Xxxxx Partner any benefits or compensation other than the $24,000 a month as stated above.
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Payments; Deposit
Payments to Xxxxx should be made by direct deposit through the Company’s payroll, or by an automated clearing-house (“ACH”) payment at the same time as payments are made to the Employee. If such payment method is not available and payments are made by check, Xxxxx will issue invoices to the Company, and the Company agrees to pay such invoices no later than ten (10) days after receipt of invoices.
The Company will reimburse the Xxxxx Partner directly for out-of-pocket expenses incurred by the Xxxxx Partner in providing services hereunder to the same extent that the Company is responsible for such expenses of senior managers of the Company, in accordance with Company policy.
Xxxxx will be entitled to receive all reasonable costs and expenses incidental to the collection of overdue amounts under this agreement, including but not limited to attorneys’ fees actually incurred.
Company agrees to pay Xxxxx and to maintain a security deposit of $20,000.00 for the Company’s future payment obligations to both Xxxxx and the Xxxxx Partner under this agreement (the “Deposit”). If the Company breaches this agreement and fails to cure such breach as provided in this agreement, Xxxxx will be entitled to apply the Deposit to its damages resulting from such breach. Upon termination or expiration of this agreement, Xxxxx will return to the Company the balance of the Deposit remaining after application of any amounts to unfulfilled payment obligations of the Company to Xxxxx or the Xxxxx Partner as provided for in this agreement.
Converting Interim to Permanent
The Company will have the opportunity to make the Xxxxx Partner a permanent member of Company management at any time during the term of this agreement by entering into another form of Xxxxx agreement, the terms of which will be negotiated at such time.
Hiring Xxxxx Partner Outside of Agreement
During the twelve (12)-month period following termination or expiration of this agreement, other than in connection with another Xxxxx agreement, the Company will not employ the Xxxxx Partner, or engage the Xxxxx Partner as an independent contractor, to render services of substantially the same nature as those to be performed by the Xxxxx Partner as contemplated by this agreement. The parties recognize and agree that a breach by the Company of this provision would result in the loss to Xxxxx of the Xxxxx Partner’s valuable expertise and revenue potential and that such injury will be impossible or very difficult to ascertain. Therefore, in the event this provision is breached, Xxxxx will be entitled to receive as liquidated damages an amount equal to twenty-five percent (25%) of the Xxxxx Partner’s Annualized Compensation (as defined below), which amount the parties agree is reasonably proportionate to the probable loss to Xxxxx and is not intended as a penalty. If, however, a court or arbitrator, as applicable, determines that liquidated damages are not appropriate for such breach, Xxxxx will have the right to seek actual damages. The amount will be due and payable to Xxxxx upon written demand to the Company. For this purpose, “Annualized Compensation” will mean monthly Salary equivalent to what the Xxxxx Partner would receive on a full-time basis multiplied by twelve (12), plus the maximum amount of any bonus for which the Xxxxx Partner was eligible with respect to the then current bonus year.
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Term & Termination
This agreement shall have a term of ninety (90) days following the date hereof, after which it shall expire unless extended by the parties in writing at least fifteen (15) days prior to the scheduled expiration date for such extension period as they may agree. In the event the parties agree to extend this agreement on an at-will basis, then, during the at-will period, a minimum of fifteen (15) days’ advance written notice must be given by the party desiring to terminate this agreement, during which Xxxxx shall continue to be paid and, if requested by the Company, to perform services hereunder.
Xxxxx retains the right to terminate this agreement immediately if (1) the Company is engaged in or asks the Xxxxx Partner to engage in or to ignore any illegal or unethical activity, (2) the Xxxxx Partner dies or becomes disabled, or (3) the Xxxxx Partner ceases to be a partner of Xxxxx for any other reason. For purposes of this agreement, disability will be as defined by the applicable policy of disability insurance or, in the absence of such insurance, by Xxxxx’x management acting in good faith. The Company retains the right to terminate this agreement immediately if (1) Xxxxx Partner engages in any illegal or unethical activity or (2) the Xxxxx Partner dies or becomes disabled.
In the event that either party commits a breach of this agreement and fails to cure the same within seven (7) days following delivery by the non-breaching party of written notice specifying the nature of the breach, the non-breaching party will have the right to terminate this agreement immediately effective upon written notice of such termination.
Insurance
The Company will provide Xxxxx or the Xxxxx Partner with written evidence that the Company maintains directors’ and officers’ insurance in an amount reasonably acceptable to the Xxxxx Partner at no additional cost to the Xxxxx Partner, and the Company will maintain such insurance at all times while this agreement remains in effect. In addition, if at such time it is necessary to put a “tail” in place, the Xxxxx Partner would be covered no less favorably than the other Mayor’s officers.
Disclaimers, Limitations of Liability & Indemnity
Xxxxx assumes no responsibility or liability under this agreement other than to render the services called for hereunder and will not be responsible for any action taken by the Company in following or declining to follow any of Xxxxx’x advice or recommendations. Xxxxx represents to the Company that Xxxxx has conducted its standard screening and investigation procedures with respect to the Xxxxx Partner becoming a partner in Xxxxx, and the results of the same were satisfactory to Xxxxx. Xxxxx disclaims all other warranties, either express or implied. Without limiting the foregoing, Xxxxx makes no representation or warranty as to the accuracy or reliability of reports, projections, forecasts, or any other information derived from use of Xxxxx’x resources, and Xxxxx will not be liable for any claims of reliance on such reports, projections, forecasts, or information. Xxxxx will not be liable for any non-compliance of reports, projections, forecasts, or information or services with federal, state, or local laws or regulations. Such reports, projections, forecasts, or information or services are for the sole benefit of the Company and not any unnamed third parties.
In the event that any partner of Xxxxx (including without limitation the Xxxxx Partner to the extent not otherwise entitled in his or her capacity as an officer of the Company) is subpoenaed or otherwise required to appear as a witness or Xxxxx or such partner is required to provide
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evidence, in either case in connection with any action, suit, or other proceeding initiated by a third party or by the Company against a third party, then the Company shall reimburse Xxxxx for the costs and expenses (including reasonable attorneys’ fees) actually incurred by Xxxxx or such partner and provide Xxxxx with compensation at Xxxxx’x customary rate for the time incurred.
The Company agrees that, with respect to any claims the Company may assert against Xxxxx in connection with this agreement or the relationship arising hereunder, Xxxxx’x total liability will not exceed two (2) months of Fees.
As a condition for recovery of any liability, the Company must assert any claim against Xxxxx within three (3) months after discovery or sixty, (60) days after the termination or expiration of this agreement, whichever is earlier.
Xxxxx will not be liable in any event for incidental, consequential, punitive, or special damages, including without limitation, any interruption of business or loss of business, profit, or goodwill.
Arbitration
If the parties are unable to resolve any dispute arising out of or in connection with this agreement, either party may refer the dispute to arbitration by a single arbitrator selected by the parties according to the rules of the American Arbitration Association (“AAA”), and the decision of the arbitrator will be final and binding on both parties. Such arbitration will be conducted by the Atlanta, Georgia office of the AAA. In the event that the parties fail to agree on the selection of the arbitrator within thirty (30) days after either party’s request for arbitration under this paragraph, the arbitrator will be chosen by AAA. The arbitrator may in his discretion order documentary discovery but shall not allow depositions without a showing of compelling need. The arbitrator will render his decision within ninety (90) days after the call for arbitration. The arbitrator will have no authority to award punitive damages. Judgment on the award of the arbitrator may be entered in and enforced by any court of competent jurisdiction. The arbitrator will have no authority to award damages in excess or in contravention of this agreement and may not amend or disregard any provision of this agreement, including this paragraph. Notwithstanding the foregoing, either party may seek appropriate injunctive relief from a court of competent jurisdiction, and either party may seek injunctive relief in any court of competent jurisdiction.
Miscellaneous
Xxxxx will be entitled to receive all reasonable costs and expenses incidental to the collection of overdue amounts under this Resources Agreement, including but not limited to attorneys’ fees actually incurred.
Neither the Company nor Xxxxx will be deemed to have waived any rights or remedies accruing under this agreement unless such waiver is in writing and signed by the party electing to waive the right or remedy. This agreement binds and benefits the respective successors of Xxxxx and the Company.
Neither party will be liable for any delay or failure to perform under this agreement (other than with respect to payment obligations) to the extent such delay or failure is a result of an act of God, war, earthquake, civil disobedience, court order, labor dispute, or other cause beyond such party’s reasonable control.
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The provisions concerning payment of compensation and reimbursement of costs and expenses, limitation of liability, directors’ and officers’ insurance, and arbitration will survive the expiration or any termination of this agreement.
This agreement will be governed by and construed in all respects in accordance with the laws of the State of Georgia, without giving effect to conflicts-of-laws principles.
The terms of this agreement are severable and may not be amended except in writing signed by the party to be bound. If any portion of this agreement is found to be unenforceable, the rest of the agreement will be enforceable except to the extent that the severed provision deprives either party of a substantial benefit of its bargain.
Nothing in this agreement shall confer any rights upon any person or entity other than the parties hereto and their respective successors and permitted assigns and the Xxxxx Partner.
Each person signing below is authorized to sign on behalf of the party indicated, and in each case such signature is the only one necessary.
Bank Lockbox Mailing Address for Deposit and Fees:
Xxxxx CFO Partners, LLP
X.X. Xxx 000000
Xxxxxxx, XX 00000-0000
Electronic Payment Instructions for Deposit and Fees:
Bank Name:
Branch:
Routing Number:
Account Name: Xxxxx CFO Partners, LLP
Account Number:
Please reference: Mayor’s Jewelers, Inc., in the body of the wire.
Please sign below and return a signed copy of this letter to indicate the Company’s agreement with its terms and conditions.
We look forward to serving you.
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Sincerely yours,
| XXXXX CFO PARTNERS, LLP
|
Acknowledged and agreed by:
Mayor’s Jewelers, Inc. | |||
| /S/ XXXX XXXXXXXX | /S/ XXXXXX X. XXXXXXXXXXXX | |||
| Signature | Signature | |||
| Xxxx Xxxxxxxx | Xxxxxx X. Xxxxxxxxxxxx | |||
| (Print name) | ||||
| Area Managing Partner for XXXXX CFO PARTNERS, LLP | President & CEO | |||
| (Title) | ||||
| December 16, 2004 | ||||
| (Date) | ||||
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