Document:

ex101.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (hereinafter "Agreement") made and entered into as of the  24th day of September 2009, by and between KESSELRING HOLDING CORPORATION, a Delaware Corporation (hereinafter referred to as the "Company")
and JOSEPH SILVA, a New Hampshire resident (hereinafter referred to as “Executive"), effective September 11, 2009 (the “Effective Date”).

 

W I T N E S S E T H:

 

WHEREAS, the Company is a public holding company traded on the Over the Counter Bulletin Board and its symbol is KSSH and its subsidiaries are engaged in cabinet manufacturing and door and hardware distribution.

 

NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

 

1. RECITALS

 

The foregoing recitals are true and correct in every respect and are incorporated by reference herein.

 

2. DEFINITIONS

 

	
a.  
	
"Board" shall refer to the Board of Directors of Company.

 

	
b.  
	
“Stock” shall mean common shares of KSSH.

 

3. DUTIES AND DEVOTION OF EFFORTS

 

	
a.  
	
Duties.  Company hereby employs EXECUTIVE to exercise all authority as the Chief Executive Officer and Chief Financial Officer.  Company is aware that EXECUTIVE has other business interests that will require some of his time.

 

	
b.  
	
Devotion of Effort.  EXECUTIVE hereby agrees to devote his best profes­sional efforts to the interests of Company as described herein.  EXECUTIVE agrees to faithfully observe and abide by all rules, regulations and Bylaws of Company which are in force and which are
brought to his attention.  During the term of the Agreement, EXECUTIVE shall conduct himself in a manner befitting his position as a professional corporate Chief Executive Officer.

 

4. TERM OF AGREEMENT

 

	
a.  
	
Term.  The Term of this Agreement shall begin on the Effective Date, and end on December 11, 2009 ("Initial Term").  Upon expiration of the Initial Term, unless terminated pursuant to Section 7 of this Agreement, the Agreement shall be extended on a monthly basis (“Additional
Terms”).

 

 

 

1

 

 

 

5. COMPENSATION

 

During each Term hereof, Company shall provide the following to EXECUTIVE:

 

	
a.  
	
Base Compensation.  Executive’s Monthly Base Compensation shall be $3,000. The Base Compensation shall be paid in accordance with Company’s uniform payroll procedures.

 

	
b.  
	
Non-Cash Compensation.  Company shall provide EXECUTIVE with non-cash compensation equal to a common stock purchase warrant to acquire 1,000,000 shares of Stock exercisable at a price of $0.01 per share for a period of five years, half of which shall be exercisable immediately and
half which shall be exercisable on December 11, 2010.

 

	
c.  
	
Benefits.  EXECUTIVE shall not be provided with benefits, which will be reviewed upon the extension of this Agreement.

 

	
d.  
	
Miscellaneous Expenses.  Company shall reimburse EXECUTIVE for EXECUTIVE’s reasonable travel costs, promotional and business entertainment expenses, and all other related business expenses that are pre-approved in writing by Virgil Sandifer.

 

	
e.  
	
King Bros.-related Bonus.  In the event that the Company or its shareholders consummate a merger, acquisition, sale, or similar transaction involving the King Bros. subsidiary during the Initial Term or an Additional Term or within one hundred and eighty (180) days after the termination
of the Agreement, the Company shall pay a cash bonus equal to Twenty-Five Thousand Dollars ($25,000) to Executive at the time of the closing of such transaction.

 

	
f.  
	
Other Business Combination or Financing Bonus.  In the event that the Company, its affiliates or shareholders consummates any other type of business combination (e.g., a merger, acquisition, sale, joint venture, combination, consolidation, debt or equity investment or financing,
etc. involving the Company and/or any of its affiliates and any other entity) during the Term of the Agreement or within one hundred and eighty (180) days after the termination of the Agreement, the Company and Executive shall mutually agree, prior to the consummation of any such business combination, on additional related bonus compensation to be paid to EXECUTIVE.

 

6. EXECUTIVE EXPENSES

 

EXECUTIVE shall not be responsible for the payment of any approved expenses incurred in connection with his services provided to Company if such expenses are not paid by Company.

 

7. TERMINATION OF AGREEMENT

 

Either the EXECUTIVE or the Company may terminate the Agreement upon providing written notice to the other party at minimum five (5) business days prior to the end of the Initial Term or an Additional Term.

 

 

 

2

 

 

 

8. NOTICE

 

Any and all notices, requests, demands, directions or other communications required or permitted hereunder shall be in writing and shall be deemed to have been given or made when personally delivered or mailed by registered or certified mail, postage prepaid, return receipt requested, addressed as follows or to such other address as the
party to whom the same is intended shall have specified in conformity with the foregoing:

 

	
As to Company: 
	
Kesselring Holding Corporation
602 West Valley Mall Blvd.
Union Gap, WA 98901                                     

 

	
As to EXECUTIVE:   
	
Joseph Silva

P.O. Box 170

689 1st N.H. Tpke.

Northwood, N.H. 03261                                   

 

9. INDEMNITY

 

	
a.  
	
EXECUTIVE shall indemnify and hold Company harmless from and against any and all claims or actions brought by any person or from liabilities, losses, damages, costs, penalties and expenses, including but not limited to attorneys’ fees, costs and interest incurred by counsel of Company's choice, which may be sustained or incurred at any time by reason
of:

 

	
(i)  
	
EXECUTIVE’s gross negligence or willful misconduct in performing or failing to perform any service within the scope of EXECUTIVE's services under this Agreement; or

 

	
(ii)  
	
Violations of the prohibitions of criminal statutes under federal or state law; or

 

	
(iii)  
	
Violations of the prohibitions of civil statutes or regulations under federal or state law (other than those involving simple or ordinary negligence).

 

	
b.  
	
Company shall indemnify and hold EXECUTIVE harmless from and against any and all claims or actions brought by any person or from liabilities, losses, damages, costs, penalties and expenses, including but not limited to attorneys’ fees, costs and interest incurred by counsel of Company's choice, which may be sustained or incurred at any time by reason
of EXECUTIVE’s Performance of the services, responsibilities and duties set out in this Agreement, except as otherwise set forth in Article 9(a) hereof.

 

10. CONFIDENTIALITY   EXECUTIVE shall keep confidential and not use or disclose to others, except as expressly consented
to in writing by Company or as required by applicable federal, state and local laws and regulations, any secrets or confidential technology, proprietary information, customer lists, or trade secrets of Company, or any matter, formula, technique or thing ascertained by EXECUTIVE through association with Company, the use or disclosure of which matter or thing might reasonably be construed to be contrary to the best interests of Company.

 

 

 

3

 

 

11. NON COMPETITION

 

	
a.  
	
EXECUTIVE agrees that during the term of this Agreement and for a period of one (1) year following termination or expiration hereof, for any reason, EXECUTIVE will not directly or indirectly:

 

	
(i)  
	
Solicit or contact any clients, potential clients or candidates, except on behalf of Company, or to persuade clients, potential clients or candidates to cease to do business with Company;

 

	
(ii)  
	
Employ or retain, or attempt to employ or retain any person who is then, or at any time during the preceding year, an employee, contractor or consultant of Company;

 

	
(iii)  
	
Compete with the business of Company;

 

	
(iv)  
	
Disclose to anyone, any confidential information, trade secrets or client lists, or utilize such confidential information, trade secrets or client lists for EXECUTIVE’s own benefit, or for the benefit of any third parties.

 

	
(v)  
	
Undertake any illegal activities or any acts that are not in the best interests of Company.

 

	
b.  
	
For the purposes of this Agreement, the term “confidential information” shall mean all of the following materials and information (whether or not reduced to writing and whether or not patentable or subject to protection by a copyright) to which EXECUTIVE receives access or which EXECUTIVE develops, in whole or in part, as a direct or indirect
result of EXECUTIVE’s services to Company or in the course of EXECUTIVE’s service with Company.

 

	
c.  
	
EXECUTIVE agrees that the “confidential information” is and shall at all times remain the sole and exclusive property of Company and that any of the “confidential information” produced by EXECUTIVE shall be considered work for hire and the exclusive property of Company.

 

	
d.  
	
Failure of any party at any time to insist upon strict performance of a condition, promise, agreement, or understanding set forth herein, shall not be construed as a waiver or relinquishment of the right to insist upon strict performance of such condition, promise, agreement or understanding at a future time.

 

	
e.  
	
The parties agree that Company may assign this Agreement, and any successor-in-interest shall have the right to full enforcement of this Agreement.

 

 

 

4

 

 

 

12. MISCELLANEOUS PROVISIONS

 

	
a.  
	
Washington Law and Venue.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Washington.  If any action, suit or proceeding is instituted as a result of any
matter or thing affecting this Agreement, the parties hereby designate Union Gap, WA, as the proper jurisdiction and the venue in which same is to be instituted.

 

	
b.  
	
No Presumption.  The fact that the first (or later) draft of this Agreement was prepared by counsel for either party shall create no presumptions and specifically shall not cause any ambiguities to be construed against the other party.

 

	
c.  
	
Headings.  The Paragraph headings contained herein are for reference purposes only and shall not in any way affect the meaning and interpretation of this Agreement.

 

	
d.  
	
Binding Effect.  This Agreement shall be legally binding upon and shall operate for the benefit of the parties hereto, their respective heirs, personal and legal representatives, transferees, successors, assigns and beneficiaries.

 

	
e.  
	
Entire Agreement.  This Agreement contains the entire agreement of the parties hereto with respect to the subject matter addressed herein, and all prior understandings and agreements, whether written or oral, between and among the parties hereto relating to the subject matter of
this Agreement are merged in this Agreement.  Each party specifically acknowledges, represents and warrants that they have not been induced to sign this Agreement by any belief that the other will waive or modify the provisions of this Agreement in the future.

 

	
f.  
	
Severability.  The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted.

 

	
g.  
	
Counterparts.  This Agreement may be signed and executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one agreement.

 

	
h.  
	
Non Assignable.  This Agreement, or any provision thereof, being in the nature of personal services, may not be assigned nor duties delegated to any other person or entity and any such purported assignment or delegation is void ab
initio.

 

	
i.  
	
Modification.  This Agreement may only be modified in writing and signed by each of the parties hereto.

 

	
j.  
	
Plural and Gender.  Whenever used herein, the singular number shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders.

 

	
k.  
	
Survival.  All representations, warranties and provisions hereof without limitation shall survive the termination of this Agreement, the liquidation or dissolution of the Corporation, if any, and shall thereby continue in full force and effect at all times hereafter.

 

	
l.  
	
No Waiver of Breach.  The waiver or inaction by either party hereto of a breach of any condition of this Agreement by the other party shall not be construed as a waiver of any subsequent breach by such party, nor shall it constitute a waiver of that party's rights, actual or inherent.  The
failure of any party hereto in any instance to insist upon a strict performance of the terms of this Agreement or to exercise any option herein shall not be construed as a waiver or a relinquishment in the future of such term or option, but that the same shall continue in full force and effect.

 

	
m.  
	
Merger.  All prior agreements, discussions or matters heretofore pending between the parties, unless specifically referred to herein, have been merged into this Agreement and no claim or assertion based upon agreements, purported or otherwise, not herein contained shall be binding
or enforceable by either party.

 

	
n.  
	
Non-Disclosure.  EXECUTIVE shall execute such non-disclosure agreement with respect to confidential information of Company as is required of all Executive staff of Company.  EXECUTIVE shall see that such non-disclosure agreements are executed by all Executive staff as
a condition of continued service.

 

	
o.  
	
Attorneys' Fees and Costs.  If it should become necessary for any party to institute legal action to enforce the terms and conditions of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs incurred in connection therewith.

 

	
p.  
	
Waiver of Jury Trial.  To the extent permitted by law, in the event of a dispute between the parties, EXECUTIVE and Company hereby elect to have a judge rather than a jury resolve any future disputes and hereby waive a trial by jury of any and all issues arising in any action or
proceeding relating to this Agreement or to their relationship.  However, for additional clarity, the following is a list of some of the types of claims included in this Waiver of Jury Trial: all claims in tort (for negligent or intentional acts), in contract (whether verbal or written), by statute, for constitutional violation, for wrongful discharge, discrimination, harassment, retaliation, or claims of personal injury, for compensatory, punitive,
or other damages, expenses, reimbursements, or costs of any kind, including but not limited to, any and all claims, demands, rights, and/or causes of action arising out of their relationship from the beginning of time until the end of time.  The Parties understand that the right to a trial by jury is a constitutional right and that this election to have a judge determine any claim, rather than a jury, is a voluntary choice.

 

 

 

 

5

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

 

	 	
COMPANY:

KESSELRING HOLDINCORPORATION
	 
	 	 	 	 
	
 
	
By: 
	/s/ Virgil Sandifer	 
	 	 	Name: Virgil Sandifer	 
	 	 	Title: Chairman	 
	 	 	 	 

	 	EXECUTIVE:	 
	 	 	 	 
	
 
	
By: 
	/s/ Joseph Silva	 
	 	 	Name: Joseph Silvaex102.htm

Exhibit 10.2

 

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement (the “Agreement”) is made and entered into as of the 15th day of September 2009, by and between Searchlight Partners, LLC, a Florida limited liability company (“Consultant”)
and Kesselring Holding Corporation, a Delaware corporation and its successors-in-interest (“Client”).

	
I.  
	
ENGAGEMENT

Client hereby engages and retains Consultant as a Business Consultant for and on behalf of Client, its subsidiaries and its affiliated companies (collectively, “Affiliates”) to perform the Services (as that term is hereinafter defined) and Consultant hereby accepts such appointment on the terms and subject to the conditions
hereinafter set forth and agrees to use its best efforts in providing such Services.

	
II.  
	
INDEPENDENT CONTRACTOR

	
A.  
	
Consultant shall be, and in all respects be deemed to be, an independent contractor in the performance of its duties hereunder, any law of any jurisdiction to the contrary notwithstanding.

	
B.  
	
Consultant shall not, by reason of this Agreement or the performance of the Services, be or be deemed to be, an employee, agent, partner, co-venturer or controlling person of Client, and Consultant shall have no power to enter into any agreement on behalf of or otherwise bind Client.

	
C.  
	
Consultant shall not have or be deemed to have, fiduciary obligations or duties to Client or its Affiliates and shall be free to pursue, conduct and carry on for its own account (or for the account of others) such activities, employments, ventures, businesses and other pursuits as Consultant in its sole, absolute and unfettered discretion, may elect.

	
III.  
	
SERVICES

	
A.  
	
As Client’s Business Consultant, Consultant agrees to provide the following consulting services (collectively the “Services”):

	
1.  
	
Assisting Client in its negotiations with various creditors and other third parties related to a proposed restructuring of Client’s debt and obligations.

	
2.  
	
Advising Client and its management with respect to various corporate and operational restructuring issues related to Client’s and/or its Affiliates’ businesses.

	
3.  
	
Advising Client in their negotiations with one or more individuals, firms or entities (the “Candidate(s)”) who may have an interest in pursuing a form of Business Combination with Client and/or its Affiliates or providing investment capital in the form of debt and/or equity financing.  As used in this letter, the term “Business
Combination” shall be deemed to mean any form of merger, acquisition, joint venture, licensing agreement, product sales and/or marketing, distribution, combination and/or consolidation, etc. involving Client and/or any of its Affiliates and any other person or entity.

	
4.  
	
Assisting Client in meeting its public company-related filings with the SEC.

	
5.  
	
Assisting Client in efforts to seek additional business and business relationships that will be of benefit to Client and its Affiliates.

	
6.  
	
Evaluating, structuring and advising Client and its Affiliates in connection with potential merger and acquisition transactions and other activities related to maximizing shareholder value.

	
7.  
	
Assisting Client and its Affiliates in locating and engaging certain professionals, including various officer positions and additional members of their respective Board of Directors, as well as negotiating employment-related contracts.

	
8.  
	
Advising Client regarding company operations, staffing, strategy, and other issues related to building shareholder value.

 

 

 

1

 

 

 

	
B.  
	
Best Efforts. Consultant shall devote such time and best effort to the affairs of Client as is reasonable and adequate to render the Services contemplated by this Agreement.  Consultant is not responsible
for the performance of any services that may be rendered hereunder without Client providing the necessary information in writing prior thereto, nor shall Consultant include any services that constitute the rendering of any legal opinions or performance of work that is in the ordinary purview of the Certified Public Accountant.  Consultant cannot guarantee results on behalf of Client, but shall pursue all reasonable avenues available through its network of contacts.  At such time as an interest
is expressed by a third party in Client’s needs, Consultant shall notify Client and advise it as to the source of such interest and any terms and conditions of such interest.  The acceptance and consumption of any transaction is subject to acceptance of the terms and conditions by Client.  It is understood that a portion of the compensation paid hereunder is being paid by Client to have Consultant remain available to advise it on transactions on an as-needed basis.

	
IV.  
	
EXPENSES

It is expressly agreed and understood that Consultant’s compensation as provided in this Agreement does not include normal and reasonable out-of-pocket expenses.  The expenses described in this paragraph shall be reimbursed by Client independent of any fees described in the section below titled, “COMPENSATION.”

	
A.  
	
“Normal and reasonable out-of-pocket expenses” shall include but are not limited to: accounting, express mail, travel (including: airfare, hotel lodging and meals, transportation, etc.), and other costs involved in the execution of Consultant’s Services under this Agreement.

	
B.  
	
Client also agrees to pay its own and Consultant’s legal expenses in connection with:

	
1.  
	
Consultant’s services under this Agreement, and

	
2.  
	
Any registration of the Engagement Stock as provided in Section V below.

	
C.  
	
Consultant shall not incur any expense in excess of one thousand dollars ($1,000) without Client’s prior written consent, which consent shall not unreasonably be withheld.

	
D.  
	
Client hereby agrees to compensate Consultant promptly upon receipt of an expense invoice from Consultant.  Whenever feasible, Consultant will request advance payment of approved expenses.  The reimbursement for expenses shall not be subject to any maximum allocation, and shall be fully reimbursed.

	
V.  
	
COMPENSATION

In consideration for the Services, Client agrees that Consultant and/or its assigns shall be entitled to compensation as follows:

	
A.  
	
Monthly Advisory Fees.  Client shall pay to Consultant, in advance, a monthly fee of Three Thousand Dollars ($3,000.00 USD) (the “Monthly Advisory Fees”) with the first payment being due and payable on the date of this Agreement.  Thereafter, the Monthly Advisory
Fees are due and payable on the 30th day of each month.  The Monthly Advisory Fees are exclusive of the other compensation and reimbursable pre-approved expenses elsewhere provided in this Agreement.  Said Monthly Advisory Fees shall continue for the Initial Term, or shall end upon proper termination of this Agreement according to the section below titled, “TERM AND TERMINATION”.  In addition
to the foregoing Monthly Advisory Fees, should Client request that any principal of the Consultant travel to perform any task contemplated by this Agreement, Consultant will receive an additional fee of $250 per day per principal payable at the time and as part of the next Monthly Advisory Fee that is due.

	
B.  
	
Engagement Warrants.  In addition, Consultant or its assigns will be granted Warrants to purchase One Million (1,000,000) shares of Common Stock of the Company for an aggregate price equal to one cent ($0.01) per share (the “Engagement Warrants”).  The Engagement
Warrants shall vest according to the following schedule: Fifty percent (50%) upon the execution of this Agreement and Fifty percent (50%) on the ninety-first (91st) day after the execution of this Agreement.  The specific terms and conditions of the Engagement Warrants will be set forth on the attached Exhibit “A”. Concurrent with the execution
of this Agreement, Client shall immediately execute the Engagement Warrants and deliver such Engagement Warrants to Consultant.

	
C.  
	
King Bros.-related Bonus.  In the event that the Company or its shareholders consummates a merger, acquisition, sale, or similar transaction involving the King Bros. subsidiary during the Term of the Agreement or within one hundred and eighty (180) days after the termination of
the Agreement, Client shall pay such additional compensation to Consultant, at the time of the closing of such transaction, a cash bonus equal to Seventy-Five Thousand Dollars ($75,000).

	
D.  
	
Other Business Combination or Financing Bonus.  In the event that Client, its Affiliates or shareholders consummates any other type of Business Combination (e.g., a merger, acquisition, sale, joint venture, combination, consolidation, debt or equity investment or financing, etc.
involving Client and/or any of its Affiliates and any other entity) during the Term of the Agreement or within one hundred and eighty (180) days after the termination of the Agreement, Client and Consultant shall mutually agree, prior to the consummation of any such Business Combination, on additional related bonus compensation to be paid to Consultant.

	
E.  
	
Office Maintenance.  In order to facilitate the Services being rendered for Client, Client agrees to provide Consultant the use of the office space located at 1956 Main Street, Sarasota, Florida, for the period of time that this Agreement remains in effect, at no charge to Consultant.

 

 

 

 

2

 

 

	
VI.  
	
REPRESENTATIONS, WARRANTIES AND COVENANTS

	
A.  
	
Execution.  The execution, delivery and performance of this Agreement, in the time and manner herein specified, will not conflict with, result in a breach of, or constitute a default under any existing agreement, indenture, or other instrument to which either Client or Consultant is a party
or by which either entity may be bound or affected.

	
B.  
	
Non-Circumvention.  Client hereby irrevocably agrees not to circumvent, avoid, bypass, or obviate, directly or indirectly, the intent of this Agreement, including avoiding payment of fees or other compensation to Consultant or its affiliates in connection with any transaction involving any
corporation, partnership, individual, or other entity introduced by Consultant to Client and/or its Affiliates.

	
C.  
	
Timely Apprisals.  Client shall keep Consultant up to date and apprised of all business market and legal developments related to Client and its operations and management.

	
D.  
	
Corporate Authority.  Both Client and Consultant have full legal authority to enter into this Agreement and to perform the same in the time and manner contemplated.

	
E.  
	
Authorized Signatures.  The individuals whose signatures appear below are authorized to sign this Agreement on behalf of their respective corporations.

	
F.  
	
Cooperation.  Client will cooperate with Consultant, and will promptly provide Consultant with all pertinent materials and requested information in order for Consultant to perform its Services pursuant to this Agreement.

	
G.  
	
Legal/Accounting Advice.  Client acknowledges and understands that Consultant is not providing any legal or accounting advice to Client and should consult with its own independent legal counsel and accounting/tax professionals regarding all such matters.

	
VII.  
	
TERM AND TERMINATION

	
A.  
	
This Agreement shall be effective upon its execution and shall remain in effect for a period of ninety (90) days from the date of execution (the “Initial Term”).  Thereafter the Agreement shall renew on a month-to-month basis unless otherwise terminated as provided in this Section VII.

	
B.  
	
Client shall have the right to terminate Consultant’s engagement hereunder by furnishing Consultant with written notice of such termination; provided, however, that any such termination prior to the expiration of the Initial Term shall entitle Consultant to receive upon such termination a lump sum payment of all remaining Monthly Advisory Fees that
would have been earned through the Initial Term.  If any notice of termination is given after the Initial Term, this Agreement will then terminate on the last day of the next full calendar month following the receipt of notice.  Notice of termination must be received before the end of the last day of the calendar month in order to terminate the Agreement on the last day of the next full calendar month following the receipt of notice.

	
C.  
	
Notwithstanding the foregoing, no termination of this Agreement by Client shall in any way affect Consultant’s right to receive:

	
1.  
	
Consultant’s Monthly Advisory Fees through the Initial Term or a latter termination of the Agreement;

	
2.  
	
Reimbursement for billed, accrued and/or unbilled disbursements and expenses which right the parties hereby agree and consent is absolute;

	
3.  
	
The Engagement Warrants; and

	
4.  
	
Any Business Combination Bonus earned as provided in Section V.C. above.

 

 

 

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VIII.  
	
CONFIDENTIAL DATA

	
A.  
	
Except for its employees, agents and independent contractors, Consultant shall not divulge to others, any trade secret or confidential information, knowledge, or data concerning or pertaining to the business and affairs of Client, obtained by Consultant as a result of its engagement hereunder, unless authorized, in writing by Client.

	
B.  
	
Except for its employees, agents and independent contractors, Client shall not divulge to others, any trade secret or confidential information, knowledge, or data concerning or pertaining to the business and affairs of Consultant, obtained by Client as a result of its engagement hereunder, unless authorized, in writing, by Consultant.

	
C.  
	
Consultant shall not be required in the performance of its duties to divulge to Client or any officer, director, agent or employee of Client, any secret or confidential information, knowledge, or data concerning any other person, firm or entity (including, but not limited to, any such persons, firm or entity which may be a competitor or potential competitor
of Client) which Consultant may have or be able to obtain otherwise than as a result of the relationship established by this Agreement.

	
IX.  
	
[OMITTED]

	
X.  
	
OTHER MATERIAL TERMS AND CONDITIONS:

	
A.  
	
Indemnity.  Because Consultant will be acting on Client’s behalf, it is Consultant’s practice to receive indemnification.  A copy of Consultant’s standard indemnification provisions (the “Indemnification Provisions”) is attached to this Agreement as Exhibit
A and is incorporated herein and made a part hereof.  Client hereby indemnifies Consultant according with the provisions attached as Exhibit A.

	
B.  
	
Consequential Damages.  Except as expressly provided herein, Consultant and its affiliates shall not, by reason of the termination of this Agreement or otherwise, be liable to Client or its Affiliates for any special, incidental, consequential or punitive damages such as, but not limited
to, expenditures, investments or commitments made in connection with the efforts by Client to acquire another entity or sell all or a portion of its equity to another entity.

	
C.  
	
Provisions.  Neither termination nor completion of this Agreement shall affect the provisions of this Agreement, and the Indemnification Provisions that are incorporated herein, both of which shall remain operative and in full force and effect.

	
D.  
	
Additional Instruments.  Each of the parties shall from time to time, at the request of others, execute, acknowledge and deliver to the other party any and all further instruments that may be reasonably required to give full effect and force to the provisions of this Agreement.

	
E.  
	
Entire Agreement.  Each of the parties hereby covenants that this Agreement is intended to and does contain and embody herein all of the understandings and Agreements, both written or oral, of the parties hereby with respect to the subject matter of this Agreement, and that there exists
no oral agreement or understanding expressed or implied liability, whereby the absolute, final and unconditional character and nature of this Agreement shall be in any way invalidated, empowered or affected.  There are no representations, warranties or covenants other than those set forth herein.

	
F.  
	
Laws of the State of Florida.  This Agreement shall be deemed to be made in, governed by and interpreted under and construed in all respects in accordance with the laws of the State of Florida, irrespective of the country or place of domicile or residence of either party.  In the
event of controversy arising out of the interpretation, construction, performance or breach of this Agreement, the parties hereby agree and consent to the jurisdiction and venue of the District or County Court of Sarasota County, Florida; or the United States District Court for the District of Florida, and further agree and consent that personal service or process in any such action or proceeding outside of the State of Florida and Sarasota County shall be tantamount to service in person within Sarasota County,
Florida and shall confer personal jurisdiction and venue upon either of said Courts.

 

 

 

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G.  
	
Assignments.  The benefits of the Agreement shall inure to the respective successors and assigns of the parties hereto and of the indemnified parties hereunder and their successors and assigns and representatives, and the obligations and liabilities assumed in this Agreement by the parties
hereto shall be binding upon their respective successors and assigns.

	
H.  
	
Originals.  This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original and constitute one and the same Agreement.  Facsimile copies with signatures shall be given the same legal effect as an original.

	
I.  
	
Addresses of Parties.  Each party shall at all times keep the other informed of its principal place of business if different from that stated herein, and shall promptly notify the other of any change, giving the address of the new place of business or residence.

	
J.  
	
Notices.  All notices that are required to be or may be sent pursuant to the provision of this Agreement shall be sent by certified mail, return receipt requested, or by overnight package delivery service to each of the parties at the address appearing herein, and shall count from the date
of mailing or the validated air bill.

	
K.  
	
Modification and Waiver.  A modification or waiver of any of the provisions of this Agreement shall be effective only if made in writing and executed with the same formality as this Agreement.  The failure of any party to insist upon strict performance of any of the provisions
of this Agreement shall not be construed as a waiver of any subsequent default of the same or similar nature or of any other nature.

	
L.  
	
Injunctive Relief.  Solely by virtue of their respective execution of this Agreement and in consideration for the mutual covenants of each other, Client and Consultant hereby agree, consent and acknowledge that, in the event of the failure by Client to pay the consideration to Consultant
or in the event of a breach of any other material term, Consultant will be without adequate remedy-at-law and shall therefore, be entitled to immediately redress of any material breach of this Agreement by temporary or permanent injunctive or mandatory relief obtained in an action or proceeding instituted in the District or County Court of Sarasota County, State of Florida or the United States District Court for the District of Florida without the necessity of proving damages and without prejudice to any other
remedies which Consultant may have at law or in equity.  For the purposes of this Agreement, Client hereby agrees and consents that upon a material breach of this Agreement as aforesaid, in addition to any other legal and/or equitable remedies Consultant may present a conformed copy of this Agreement to the aforesaid courts and shall thereby be able to obtain a permanent injunction enforcing this Agreement or barring enjoining or otherwise prohibiting Client from circumventing the express written intent
of the parties as enumerated in this Agreement.

	
M.  
	
Attorney’s Fees.  If any arbitration, litigation, action, suit, or other proceeding is instituted to remedy, prevent or obtain relief from a breach of this Agreement, in relation to a breach of this Agreement or pertaining to a declaration of rights under this Agreement, the prevailing
party will recover all such party’s attorneys’ fees incurred in each and every such action, suit or other proceeding, including any and all appeals or petitions therefrom.  As used in this Agreement, attorneys’ fees will be deemed to be the full and actual cost of any legal services actually performed in connection with the matters involved, including those related to any appeal or the enforcement of any judgment calculated on the basis of the usual fee charged by attorneys performing
such services.

APPROVED AND AGREED:

 

	 	KESSELRING HOLDING CORPORATION	 
	 	 	 	 
	
 
	
By: 
	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

	 	
SEARCHLIGHT PARTNERS, LLC
	 
	 	 	 	 
	
Date
	
By: 
	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

Attachments:                                           Exhibit
“A”                      Indemnification Agreement

 

 

 

5

 

 

 

EXHIBIT A

INDEMNIFICATION PROVISIONS

Kesselring Holding Corporation (the “Company” or “Client”) agrees to indemnify and hold harmless Searchlight Partners, LLC (“Consultant”), its officers, employees and authorized agents against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses
and disbursements (incurred in any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise), including without limitation, the costs, expenses and disbursements, as and when incurred, of investigating, preparing or defending any such action, suit, proceeding or investigation (whether or not in connection with any action in which Consultant is a
party), directly or indirectly, caused by, relating to, based upon, arising out of, or in connection with Consultant’s acting for Client (other than those caused by, relating to, based upon, arising out of, or in connection with Consultant’s gross negligence or willful misconduct), under the Agreement dated September 15, 2009, between Client and Consultant to which these indemnification provisions are attached and form a part (the “Agreement”).  Such indemnification does not
apply to acts performed by Consultant, which are in criminal in nature or a violation of law.  Client also agrees that Consultant shall not have any liability (whether direct or indirect, in contract or tort, or otherwise) to Client, for, or in connection with, the engagement of Consultant under the Agreement, except to the extent that any such liability resulted primarily and directly from Consultant’s gross negligence or willful misconduct.

These indemnification provisions shall be in addition to any liability which Client may otherwise have to Consultant or the persons indemnified below in this sentence and shall extend to the following: Consultant, its affiliated entities, partners, employees, legal counsel, agents and controlling persons (within the meaning of the federal
securities laws), and the officers, directors, employees, legal counsel, agents, and controlling persons of any of them (collectively, the “Consultant Parties”).  All references to Consultant in these indemnification provisions shall be understood to include any and all of the foregoing.

If any action, suit, proceeding or investigation is commenced, as to which any of the Consultant Parties propose indemnification under the Agreement, they shall notify Client with reasonable promptness; provided however, that any failure by the party seeking indemnification to notify Client shall not relieve Client from its obligations
hereunder.  The Consultant Parties shall have the right to retain counsel of their own choice (which shall be reasonably acceptable to Client) to represent them, and Client shall pay fees, expenses and disbursements of such counsel; and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with Client and any counsel designated by Client.  Client shall be liable for any settlement of any claim against the Consultant Parties made with Client’s
written consent, which consent shall not be unreasonably withheld.  Client shall not, without the prior written consent of the party seeking indemnification, which shall not be unreasonably withheld, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise or consent includes, as an unconditional term thereof, the giving by the claimant to the party seeking indemnification of an unconditional release from all liability
in respect of such claim.

In order to provide for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express provisions
hereof provide for indemnification in such case, then Client, on the one hand, and Consultant, on the other hand, shall contribute to the losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements to which the indemnified persons may be subject in accordance with the relative benefits received by Client, on the one hand, and Consultant, on the other hand, and also the relative fault of Client, on the one hand, and Consultant, in the other hand, in connection
with the statements, acts or omissions which resulted in such losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses or disbursements and the relevant equitable considerations shall also be considered.  No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for such fraudulent misrepresentation.

Neither termination nor completion of the engagement of Consultant referred to above shall effect these indemnification provisions which shall then remain operative and in full force and effect.

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