THIRD AMENDMENT TO MCEWEN EMPLOYMENT AGREEMENT
Exhibit 10.1
THIRD AMENDMENT TO
XXXXXX EMPLOYMENT AGREEMENT
THIS THIRD AMENDMENT TO THE XXXXXX EMPLOYMENT AGREEMENT (the “Agreement”) is made, effective as of April 12, 2022, by and between Xxxxx Xxxx XxXxxx, an individual (“Employee”), and KonaTel, Inc, a Delaware corporation (a successor to Dala Petroleum Corp.) (“Employer”), with reference to the following facts and objectives:
RECITALS
WHEREAS, on or about December 1, 2017, Employee and Employer entered into the XxXxxx Employment Agreement (the “XxXxxx Employment Agreement”); and
WHEREAS, on December 19, 2019, the Board of Directors voted to amend the XxXxxx Employment Agreement to provide Employee with an annual salary of $200,000, commencing January 1, 2020, and with all other terms and conditions thereof to remain the same (the “XxXxxx First Amended Employment Agreement”); and
WHEREAS, effective January 1, 2022, Employer and Employee amended the XxXxxx Employment Agreement to increase Employee’s annual compensation to $275,000 (the “Base Salary”) and to provide for a two (2) year severance compensation package equal to Employee’s Base Salary or an aggregate of $550,000, together with any accrued and untaken vacation, in the event of Employee’s departure from Employer, if any termination of employment is not “for cause” as defined in the XxXxxx Employment Agreement (respectively, the “XxXxxx Second Amended Employment Agreement” and the “Severance Compensation”); and
WHEREAS, Employee also resigned as the President of Employer, effective on January 1, 2022, and continues to serve as the Chairman of the Board of Directors and the Chief Executive Officer (the “CEO”) of Employer as provided in the XxXxxx Employment Agreement; and
WHEREAS, effective April 12, 2022, Employer and Employee desire to amend the XxXxxx Employment Agreement to retroactively delete the “Combined EBITDA” provisions of subparagraph (i) of Section 2.0 of the XxXxxx Employment Agreement (the “XxXxxx Third Amended Employment Agreement”).
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree to the following amendment to the XxXxxx Employment Agreement:
Deletion of Combined EBITDA Provisions of the XxXxxx Employment Agreement. All provisions of the XxXxxx Employment Agreement that pertain to the payment to Employee of any amount based upon the Combined EBITDA provisions thereof contained in subparagraph (i) of Section 2.0 are hereby deleted from the XxXxxx Employment Agreement.
All remaining terms and conditions of the XxXxxx Employment Agreement and the XxXxxx First Amended Employment Agreement and the XxXxxx Second Amended Employment Agreement shall continue in full force and effect.
IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement effective as of the 12th day of April, 2022.
EMPLOYEE: | EMPLOYER: | ||
KONATEL, INC., a Delaware corporation | |||
/s/ D. Xxxx XxXxxx | By: | /s/ Xxxxx Xxxxxxx | |
D. Xxxx XxXxxx | Xxxxx Xxxxxxx, President/COO |
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