EXECUTIVE EMPLOYMENT AGREEMENT
THIS EXECUTIVE EMPLOYMENT AGREEMENT (Agreement) is entered into as of the 24th day of January, 2020 (the Execution Date), by and between AAC Holdings, Inc., a Nevada corporation (the Company), and Andrew W. McWilliams, a resident of Williamson County, Tennessee (Employee).
(a) WHEREAS, Company is a provider of inpatient and outpatient substance use treatment services for individuals with drug and alcohol addiction and co-occurring mental/behavior health issues (the Business);
(b) WHEREAS, this Agreement is not intended to provide for the deferral of compensation within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, but rather is intended to satisfy the short-term deferral exemption under Treas. Reg. §1.409-1(b)(4) and/or the separation pay exemption under Treas. Reg. §1.409A-1(b)(9);
(c) WHEREAS, Employee acknowledges that it is in Employees best interest to enter into an employment relationship with the Company;
(d) WHEREAS, the Company desires to hire Employee as its Chief Executive Officer, who shall perform such services as the Companys Board of Directors (the Board) may direct;
(e) WHEREAS, in the course of performing his duties for the Company, Employee is likely to gain certain confidential and proprietary information belonging to the Company, develop relationships that are vital to the Companys goodwill, and acquire other important benefits to which the Company has a protectable interest; and
(f) WHEREAS, the Company has agreed to employ Employee as its Chief Executive Officer and Employee has agreed to accept such employment by the Company upon the terms, conditions, and restrictions contained in this Agreement.
NOW, THEREFORE, for and in consideration of the premises, and the agreements, covenants, representations and warranties hereinafter set forth, and other good and valuable consideration, the receipt and adequacy all of which are forever acknowledged and confessed, the parties hereto hereby agree as follows:
Section 1. Employment. In reliance on the representations and warranties made herein, the Company hereby agrees to retain Employee to be its Chief Executive Officer and to perform such duties and services as may from time to time be assigned to Employee by the Board. Employee shall report to the Board. Employee shall also serve as a member of the Board.
Section 2. Performance. Employee shall use Employees reasonable efforts and skills to faithfully enhance and promote the welfare and best interests of the Company. The Employee shall (i) dedicate substantially all of his business time and attention to the Company, (ii) obey all rules and regulations of the Company, (iii) follow all laws and regulations of appropriate government authorities, and (iv) be governed by any and all decisions and instructions of the Board.