Exhibit10.10
Modification of Separation Agreement andRelease
ThisModification Separation Agreement and Release(the “Agreement”), dated June26,2013,is betweenCMGHoldingsGroup,Inc.,aNevadaCorporation(the“Company”)at333HudsonStreet,Suite303,NewYork,NewYork,andAlanMorell, anindividual.(the“Morell”).
WITNESSETH:
WHEREAS, Morell has signed a Separation Agreement on September27,2012with theCompanythe“Separation Agreement”);and
WHEREAS,thepartiesacknowledgethattherearecertainpaymentsdueMorellpursuanttotheSeparationAgreement, a portion ofwhichremainoutstandingorunpaid;and
WHEREAS,thepartiesmutuallywishtoamendtheSeparationAgreementandcancelanyongoingorfutureobligationseach tothe otheras mayhavebeen created pursuant totheterms oftheSeparationAgreement:
NOWTHEREFORE, in consideration ofthepremises and mutual covenants,conditionsand agreementscontained hereinandforsuchothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,theparties hereto, eachintendingto belegallyboundhereby, agree as follows:
1. Compensation. Item2oftheSeparationAgreementtitledCompensationisherebyremovedandisreplacedwiththefollowing:The salarydueMorell inthe totalamount of $525,000.00 asevidencedby a convertible promissorynoteintheprincipleamountof$525,000.00andtheSmithBarneyCreditLineintheamountof$112,000asevidencedbyaconvertiblepromissorynoteintheprincipleamount of $112,000.00is herebyconvertedandsettledfor 2,800,000newlyissuedunrestricted sharestobe paidimmediately. Morellherebyholdsthe Companyharmlessfrom anyandallfuture obligationsor demandsof any kind.
2. Release of Shares. The Company herebygrantsMorelltherightsubjecttoa5%leakoutpermonthofhistotalshares, toremovetherestrictivelegendonthefollowingsharesintheCompanyconsistingofSharenumber3836-4for8,455,944sharesinthenameofAlanMorell,SharenumberCS1-2311for3,500,000sharesinthenameofAlanMorell,Sharenumber3545-1for600,000 shares inthe name of Alan and Janet Morell and shares inthe name of CommercialRights international Corp. for 6,607,000 shares.
3. MutualReleases.
(a) The Parties heretoacknowledgea full resolution and satisfaction of, and hereby IRREVOCABLY AND UNCONDITIONALLYRELEASE,REMISEANDFOREVERDISCHARGEeachotherfromanyandallliabilities,actions,causesofaction,contracts,agreements,promises,claimsanddemandsofanykindwhatsoever,inlaworequity,whether known orunknown, suspectedor unsuspected,fixedorcontingent, apparent orconcealed,whichthey,their heirs,executors, administrators, successors or assigns everhad,nowhaveor hereafter can, shall or mayhavefor,upon, or by reason of any matter, cause orthing whatsoever,fromthebeginningofEmployee’s employmentwiththe Companytothe dayofthedate ofthis Agreement, arisingoutof or relating to Employee’s employment, compensation and benefitswith theCompanyand/or the termination thereofincluding,withoutlimitation, contractclaims, benefitclaims, tortclaims, harassment, defamation andother personalinjuryclaims, fraudclaims,whistleblower claims,unjust, wrongfulor constructive dismissalclaims andanyclaimsunder any municipal, state or federalwage payment, discrimination or fair employmentpractices law, statute or regulation, and claims for costs, expenses and attorneys' feeswith respect thereto.
(b) BysigningthisAgreement,thePartiesherebyWAIVE,RELEASEANDCOVENANTNOTTOSUEeachotherwithrespecttoanymatterrelatingtoorarisingoutofEmployee’semployment,compensationandbenefitswiththeCompanyand/orthetermination thereof,and agreethatneither theynor any person,organization orentityacting ontheirbehalfwill (i)fileorparticipateorjoinin,encourage,assist,facilitateorpermitthebringingormaintenanceofanyclaimorcauseofaction againsttheother,whether inthe formof a federal, state or municipalcourtlawsuitor administrative agencyaction orotherwise,onthebasis ofanyclaimarisingout oforrelatingtoEmployee’s employment,compensation,andbenefitswiththe Companyand/orthe terminationthereof or (ii) seekreinstatement, reemploymentor anyother relief fromthe Company,however that relief might becalled, whether backpay,compensatory damages,punitivedamages,claims for pain and suffering,claims for attorneys'fees, reimbursement of expensesor otherwise, onthe basisof any such claim, except for claimsfor a breach ofthis Agreement and Release. Nothingcontainedherein shall be deemed toconstitutean admission orevidenceof anywrongdoing orliabilityonthe partofeither Partyhereto. Itis expresslyunderstoodandagreedthatthis AgreementandRelease shallactas a complete barto any claim, demand oraction ofanykind whatsoeverbrought byeitherParty againsttheotherrelating to Employees employment, compensationandbenefitswiththe Companyand/orthe terminationthereof, except for claims forbreach ofthisAgreement and Release.
4. Confidential Information. Morellacknowledgesthat,byreasonofhispositionwiththeCompany,hehasbeengiven accesstoconfidentialorproprietarymaterialsorinformationrespectingtheCompany'sbusinessaffairs. Morellrepresentsthathe has held all such information confidential andwillcontinue to do so, andthat, unless he first securesthe Company's written consent, heshallnotdirectlyor indirectlypublish, marketor otherwisedisclose, advise, counselor otherwiseprocureanyother person orentity,directly orindirectly,topublish,disclose,marketoruse,any such secret,confidentialorproprietary information or relationships oftheCompany ("TradeSecrets"), ofwhichMorell became aware or informed duringhis employmentwiththe Company, unlessthe Company shallhave firstgiven its express written consent to suchpublication, disclosure, marketing oruse, excepttotheextentthatsuch Trade Secretsa)were known to Morellatthe time oftheirreceipt, b) were in orhave become partofthe public domain (otherwise than through Employee),c) were known tothe recipientprior tothedisclosure, or d) arerequiredtobedisclosedbyacourtor governmentalagency. SuchTradeSecrets areandshallcontinueto bethe exclusive proprietary property ofthe Companywhetherornotthey were disclosed to ordeveloped in whole orin partby Morell.Such"TradeSecrets"include,without limitation,subscriber lists,marketingplansandprograms,studies,andstrategies oforaboutthe Company oritsbusiness,customersorsuppliers,which derivesindependent economicvalue,actual orpotential, fromnotbeing generally knownto, andnotbeing readily ascertainable by proper meansby,other personswho canobtain economicvaluefrom its disclosure.
2 |
5. Modifications. ThisAgreementmaynotbechangedorally,andnomodification,amendmentorwaiverofanyofthe provisionscontainedinthisAgreementnoranyfuturerepresentation,promiseorconditioninconnectionwiththesubjectmatter ofthisAgreement, shall be binding upon any party hereto unless made in writing and signed by such party.
6. Governing Law. ThisAgreementandReleaseshallbesubjectto,governedbyandinterpretedinaccordancewiththe lawsoftheStateofNewYork.ThePartiesagreethatvenueforanyproceedingtoenforceorinterprettheprovisionsofthisagreement shall betheDistrict Court fortheSouthern District of NewYork.
7. Confidentiality. This Agreement andtheterms hereof shall bekeptconfidentialotherthan as may berequired disclosuresunder applicablesecurities reportinglaws.
8. Entire Agreement. ThisAgreementcontainstheentireagreementbetweenthepartieswithrespecttothesubjectmatter hereofandsupersedesandterminatesanyandallpreviousagreementsofanykindwhatsoeverbetweentheparties,whetherwritten or oral, relating to Employee’s employment, compensation and benefitswith theCompanyand/or theterminationthereof. This is an integrated document.
9. Enforcement.ThepartiesagreethatthisAgreementmaybespecificallyenforcedincourtandmaybeusedasevidence inasubsequentproceedinginwhichanyofthepartiesallegeabreachofthisAgreement.Intheeventoflitigationinconnectionwithor concerningthe subject matter ofthis Agreement,the prevailingpartyshall recover allthe Party’s costs, expenses and attorneys' fees incurred in each and every suchaction, suit orother proceeding,including any and all appeals orpetitions therefrom.
10. Severability. The provisions ofthisAgreement shall be considered severable intheevent that any of suchprovisions areheldbyacourtofcompetentjurisdictiontobeinvalid,voidorotherwiseunenforceable.Suchinvalid,voidorotherwiseunenforceableprovisionsshallbeautomaticallyreplacedbyotherprovisionswhicharevalidandenforceableandwhichareassimilaraspossibleinterm andintent tothoseprovisionsdeemedtobeinvalid,void orotherwiseunenforceable.Notwithstanding theforegoing,theremaining provisions hereof shall remain enforceable tothefullestextentpermitted bylaw.
11. Assignability. ThisAgreementshallnotbeassignablebyMorell,butshallbebindinguponandshallinuretothe benefit ofhisheirs, executors, administrators and legal representatives. This Agreement shall be assignable bytheCompany toany affiliate, subsidiary ordivisionthereof and to any successor ininterest.
12. Waiverand Further Agreement. Any waiverof any breach of any terms orconditionsofthisAgreement shallnotoperateasawaiverofanyotherbreachofsuchtermsorconditionsoranyothertermor conditionhereof norshallanyfailuretoenforceanyprovisionhereofoperateasawaiverofsuchprovisionorofanyotherprovisionhereof.Eachofthepartiesheretoagreestoexecuteallsuchfurtherinstrumentsanddocumentsandtotakeallsuchfurtheraction astheotherpartymay reasonably require in order to effectuatetheterms and purposes ofthis Agreement.
13. Headings of No Effect. TheheadingscontainedinthisAgreementareforreferencepurposesonlyandshallnotinany way affectthemeaning or interpretation ofthisAgreement.
3 |
INWITNESS WHEREOF,theparties heretohaveexecutedthisAgreement as ofthedatefirstabovewritten.
CMG HOLDINGS GROUP, INC. | ||
By: | ||
Jeffrey Devlin, Director | ||
By: | ||
Alan Morell |
4