Document:

exv10w2

 

Exhibit 10.2

SEPARATION AGREEMENT AND RELEASE OF CLAIMS

(initially provided to Mr. Daniel on January 22, 2007)

(provided to Mr. Daniel as amended on January 30, 2007)

(provided to Mr. Daniel as further amended on February 1, 2007)

     This Separation Agreement and Release of Claims (this “Separation Agreement”) is made by
and between ADVENTRX Pharmaceuticals, Inc. (the “Company”), a Delaware corporation, and Robert A.
Daniel (“Mr. Daniel”) (collectively, the “Parties”).

RECITALS

     WHEREAS, the Parties have agreed to transition Mr. Daniel’s responsibilities and duties to the
Company in a considered and professional manner;

     WHEREAS, Mr. Daniel will conclude his employment with the Company, as described herein;

     WHEREAS, after the conclusion of Mr. Daniel’s employment with the Company, Mr. Daniel wishes
to serve as a consultant to the Company, and the Company wishes to retain Mr. Daniel as a
consultant;

     WHEREAS, the Parties desire an amicable separation of employment and to resolve any and all
claims, disputes, issues, or matters that were asserted or could be asserted;

     NOW THEREFORE, in consideration of the promises, covenants and agreements set forth herein,
and subject to the terms and conditions set forth below, the Parties desire to, and hereby do,
agree as follows:

     1. Mr. Daniel’s employment with the Company will terminate effective February 15, 2007 (the
“Termination Date”);

     2. The Company will retain Mr. Daniel, and Mr. Daniel agrees to provide, services as an
independent contractor on the terms provided in the independent contractor agreement attached
hereto as Exhibit A (including the Company’s Confidential Information and Invention Assignment
Agreement referenced therein) (the “Consulting Agreement”). The Parties agree that, concurrent with
the signing of this Separation Agreement, they will sign the Consulting Agreement and that the
effectiveness of the Consulting Agreement will be concurrent with the effectiveness of the
termination of Mr. Daniel’s employment with the Company. For clarification, the Parties agree that
Mr. Daniel will remain in Continuous Service (as defined in the Company’s 2005 Equity Incentive
Plan) to the Company for so long as the Consulting Agreement remains in effect but in no event
beyond March 30, 2007.

 

 

     3. On the Termination Date, the Company will make available to Mr. Daniel his final paycheck
for wages and all earned and unused vacation. This payment is not dependent upon Mr. Daniel
signing this Separation Agreement. In addition, in exchange for Mr. Daniel agreeing to be bound by
the terms of this Separation Agreement and the Consulting Agreement and performing his obligations
hereunder and thereunder (including, without limitation, granting the release set forth in Section
4), the Company will provide Mr. Daniel with the following benefits to which he otherwise would not
be entitled:

     3.1 Six (6) months of pay, payable in a lump sum on March 30, 2007, based on Mr. Daniel’s
current base salary, less all the required withholdings and taxes; provided however, that both (a)
Mr. Daniel has not terminated the Consulting Agreement prior to March 30, 2007 and (b) the Company
has not terminated the Consulting Agreement prior to March 30, 2007 as a result of Mr. Daniel’s
material breach of the Consulting Agreement (including the Company’s Confidential Information and
Invention Agreement referenced therein).

     3.2 If Mr. Daniel chooses to elect continuation of coverage under the federal law known
as COBRA, the Company will continue to pay Mr. Daniel’s medical, dental and vision premium through
September 30, 2007, unless he becomes eligible for coverage under another group insurance plan
before that date.

     3.3 Mr. Daniel acknowledges and agrees that, (a) upon his receipt of the final paycheck
described in Section 3, the Company has paid all salary, wages, bonuses, commissions, vacation pay,
floating holiday pay and other benefits or compensation due Mr. Daniel from the Company and (b) but
for this Separation Agreement, Mr. Daniel is not entitled to the benefits set forth in Sections 3.1
or 3.2 and that, in the event Mr. Daniel fails to fully perform under this Separation Agreement or
the Consulting Agreement, the Company has no obligation to provide, or continue to provide, such
benefits.

     4. Releases.

     4.1 Mr. Daniel, for himself and his heirs, agents, assigns, executors, administrators,
representatives, successors and each of them, unconditionally, irrevocably and absolutely releases
and discharges the Company, and each of its current, former and future parents, subsidiaries,
divisions, partnerships, employee benefit plans and other related and affiliated entities of the
Company and their respective employees, officers, directors, agents, predecessors, successors,
fiduciaries, consultants, attorneys and assigns (collectively “Released Parties”), from all claims
related in any way to the transactions or occurrences between them to date, to the fullest extent
permitted by law, including, but not limited to, Mr. Daniel’s employment with the Company, the
termination of his employment, and all other losses, liabilities, claims, demands and causes of
action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in
any way connected with Mr. Daniel’s employment with the Company and the termination

2

 

of that
employment. This release is intended to have the broadest possible application
permitted by law and includes, but is not limited to, any tort, contract, common law,
constitutional or statutory claims and all claims for attorneys’ fees, costs and expenses.
Notwithstanding the foregoing, this release shall not serve as a waiver of Mr. Daniel’s rights to:
(i) vested benefits due to his employment with the Company, (ii) workers compensation or
unemployment benefits, (iii) statutorily-required indemnification under California Labor Code
Section 2802 or any comparable provisions of other states’ laws, or (iv) any other benefits or
claims that cannot be released as a matter of law.

     4.2 The Company, and each of its current, former and future parents, subsidiaries, divisions,
partnerships, employee benefit plans and other related and affiliated entities of the Company and
their respective employees, officers, directors, agents, predecessors, successors, fiduciaries,
consultants, attorneys and assigns and each of them, unconditionally, irrevocably and absolutely
releases and discharges Mr. Daniel and his heirs, agents, assigns, executors, administrators,
representatives, successors (collectively, “Releasees”) from all claims related in any way to the
transactions or occurrences between them to date, to the fullest extent permitted by law, including
but not limited to, Mr. Daniel’s employment with the Company, the termination of his employment,
and all other losses, liabilities, claims, demands and causes of action, known or unknown,
suspected or unsuspected, arising directly or indirectly out of or in any way connected with Mr.
Daniel’s employment with the Company and the termination of that employment. This release is
intended to have the broadest possible application permitted by law and includes, but is not
limited to, any tort, contract, common law, constitutional or statutory claims and all claims for
attorneys’ fees, costs and expenses.

     4.3 Each of the Parties declares and represents that it intends this Separation Agreement to
be complete and not subject to any claim of mistake, and that the release herein expresses a full
and complete release and, regardless of the adequacy or inadequacy of the consideration, the
Parties intend the releases to be final and complete. The Parties execute this Separation
Agreement with the full knowledge that the releases contained in it covers all possible claims
against the Released Parties and the Releasees, as applicable, to the fullest extent permitted by
law.

     5. Acknowledgement of Understanding. Each of the Parties acknowledges that it may
discover facts or law different from, or in addition to, the facts or law that it knows or believes
to be true with respect to the claims released in this Separation Agreement and agrees,
nonetheless, that this Separation Agreement and the releases contained in it shall be and remain
effective in all respects notwithstanding such different or additional facts or the discovery of
them. Each of the Parties expressly acknowledges and agrees that its rights under Section 1542 of
the California Civil Code and any comparable provisions of other states’ and federal law are
expressly waived. That section provides:

3

 

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.

     Each of the Parties expressly acknowledges, agrees and understands that the general release
give in Section 4 applies to all unknown, unsuspected and unanticipated claims, liabilities and
causes of action that it may have against any of the Released Parties or the Releasees, as
applicable.

     6. Pursuit of Released Claims. Each of the Parties represents that, as of the date of
this Separation Agreement, it has not filed any lawsuits, charges, complaints, petitions, claims or
other accusatory pleadings against any of the Released Parties or Releasees, as applicable, in any
court or with any governmental agency. Each of the Parties further agrees that, to the fullest
extent permitted by law, it will not prosecute, nor allow to be prosecuted on his behalf, in any
court, whether state or federal, any claim or demand of any type related to the matters released
herein, it being the intention of each of the Parties that with the execution of this Separation
Agreement, the Released Parties and the Releasees will each be absolutely, unconditionally and
forever discharged of and from all obligations to or on behalf of the Releasees and the Released
Parties, respectively, related in any way to the matters discharged herein. Each of the Parties
further represents that it has not assigned any claim it may have against any of the Released
Parties or Releasees, as applicable, to any other person or entity. Nothing in this Separation
Agreement limits either of the Parties’ right to file a charge or complaint with any state or
federal agency or to participate or cooperate in such a matter, but each of the Parties
acknowledges that it is not entitled to any other monies other than those payments described in
this Separation Agreement.

     7. Continuing Obligations. Mr. Daniel represents that, on or before the Termination
Date, he will return to the Company all Company documents, information and property, including
(without limitation) files, records, computer access codes and instruction manuals, as well as any
of the Company’s assets or equipment that Mr. Daniel has in his possession or are under his
control, unless and to the extent the Company determines such property is necessary for Mr. Daniel
to perform under the Consulting Agreement (in which case the use and return of such property will
be governed by the Consulting Agreement). Subject to the foregoing, Mr. Daniel further agrees not
to keep any copies of any Company documents or information. In addition to the terms and
conditions of the Consulting Agreement, Mr. Daniel acknowledges and agrees that he will continue to
be bound by (a) the Confidential Information, Non-Solicitation and Invention Assignment Agreement
for Employees entered into between the Company and Mr. Daniel (the “Company Agreement”), (b) the
Code of Business Conduct and Ethics for Employees, Executive Officers and Directors executed by
Employee (the “Code of Ethics”) and (c) the Policies and Procedure Manual executed by Employee (the
“Manual), copies of all of which have been provided to Employee.

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     8. Expense Reimbursement. By signing this Separation Agreement, Mr. Daniel agrees to
submit all outstanding reimbursements he incurred as an employee of the Company to the Company on
or before the Termination Date.

     9. Nondisparagement. Mr. Daniel will not make any voluntary statements, written or
verbal, or cause or encourage others to make any such statements that defame, disparage or in any
way criticize the Company’s business reputation, practices or conduct. The Company will not make
any voluntary statements, written or verbal, or cause or encourage others to make any such
statements that defame, disparage or in any way criticize Mr. Daniel, or his business reputation,
practices or conduct. The foregoing notwithstanding, the Parties may respond accurately and fully
to any questions, inquiry or request for information when required to do so by legal process.

     10. Arbitration of Disputes and Enforcement of Agreement.

     10.1 Mr. Daniel and the Company agree to resolve any claims they may have against each other
or that Mr. Daniel has with any of the other Released Parties through final and binding
arbitration. This agreement to arbitrate applies to any and all disputes about the validity,
interpretation, or effect of this Separation Agreement or alleged violations of it and whether a
particular claim is covered by this Separation Agreement. Except as provided in Section 10.2 and
Section 10.3, arbitration shall be the exclusive remedy for any such claim or dispute, and the
Parties expressly waive their rights to a jury trial on any such claim or dispute. However, either
party may bring an action in court to compel arbitration under this Separation Agreement or to
enforce an arbitration award. The Parties agree that a neutral arbitrator from the American
Arbitration Association will administer any such arbitration(s) pursuant to its National Rules for
the Resolution of Employment Disputes. The arbitrator shall issue a written decision with the
essential findings and conclusions on which the decision is based.

     10.2 The requirement to arbitrate disputes shall not preclude either of the Parties from
filing a charge or claim with a state or federal government agency. However, Mr. Daniel
acknowledges that he is not entitled to any other monies other than those payments described in
this Separation Agreement.

     10.3 Nothing in this Section 10 shall preclude either Party from seeking interim or
provisional relief in the form of a temporary restraining order, preliminary injunction, or other
interim relief concerning a dispute prior to or during an arbitration pursuant to this Section 10
necessary to protect the interests of such Party.

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     11. Older Workers’ Benefit Protection Act. This Separation Agreement is intended to
satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f). The
following general provisions, along with the other provisions of this Separation Agreement, are
agreed to for this purpose:

     11.1 Mr. Daniel acknowledges and agrees that he has read and understands the terms of this
Separation Agreement.

     11.2 Mr. Daniel acknowledges that this Separation Agreement advises him in writing that he may
consult with an attorney before executing this Separation Agreement, and that he has obtained and
considered such legal counsel as he deems necessary, such that he is entering into this Separation
Agreement freely, knowingly and voluntarily.

     11.3 Mr. Daniel acknowledges that he has been given at least twenty-one (21) days in which to
consider whether or not to enter into this Separation Agreement. Mr. Daniel understands that, at
his option, he may elect not to use the full twenty-one (21) day period.

     11.4 Mr. Daniel shall have seven (7) full calendar days after signing this Separation
Agreement to revoke this Separation Agreement. This Separation Agreement will not become effective
until the expiration of the revocation period. Mr. Daniel’s revocation of this Separation
Agreement must be in writing and received by Patrick Keran, General Counsel, no later than Noon on
the eighth day in order to be effective. If Mr. Daniel does not revoke acceptance within the seven
(7) day period, this Separation Agreement will become fully effective and enforceable on the eighth
day after the Separation Agreement is signed (the “Effective Date”).

     11.5 Mr. Daniel does not waive or release any rights or claims that he may have under the Age
Discrimination in Employment Act that arise after the execution of this Separation Agreement. Mr.
Daniel is not waiving his right to file a complaint or charge with the EEOC (including a challenge
to the validity of this Separation Agreement) or participate in any investigation or proceeding
conducted by the EEOC.

6

 

     12. Confidentiality. Mr. Daniel agrees to keep this Separation Agreement confidential
and not to reveal its contents or terms to anyone except Mr. Daniel’s lawyer, spouse and/or
financial consultant.

     13. Miscellaneous. This Separation Agreement is intended to be the entire agreement
between the Parties and supersedes and cancels any and all other prior agreements, written or oral,
between the Parties regarding this subject matter, except the Consulting Agreement, the Company
Agreement, the Code of Ethics and the Manual, each of which will remain in full force and effect
until it terminates, expires or no longer applies pursuant to its terms or as set forth herein.
Mr. Daniel represents that, in executing this Separation Agreement, he is not relying and has not
relied on any representation or statement made by any of the Released Parties or any of their
respective agents, attorneys or representatives with regard to the subject matter, basis or effect
of this Separation Agreement, or otherwise, other than those specifically set forth in this
Separation Agreement. This Separation Agreement may not be modified except by a writing signed by
both Mr. Daniel and an authorized officer of the Company and will be binding upon Mr. Daniel and
his heirs, agents, assigns, executors, administrators, representatives, successors. In the event
any provision of this Separation Agreement is found to be unenforceable by an arbitrator or a court
of competent jurisdiction, the provision will be deemed modified to the extent necessary to allow
enforceability of the provision as so limited, it being intended that the Company will receive the
benefits contemplated herein to the fullest extent permitted by law and all other provisions will
remain fully enforceable. This Agreement shall be governed by the laws of the State of California.

     14. Counterparts. This Separation Agreement may be executed by facsimile or facsimile
signature, and in separate counterparts, each of which shall be deemed an original but all of
which, when taken together, shall constitute one and the same instrument.

     IN WITNESS WHEREOF, I have executed this Agreement and have acknowledged that I executed the
same as my own free act and deed.

	 	 	 	 	 
	Date

	 	February 2, 2007
	 	/s/ Robert A. Daniel
	 

	 	 
	 	 
	 

	 	 	 	Robert A. Daniel
	 
	 	 	 	 
	Date

	 	Feb 2, 2007
	 	/s/ Gregory P. Hanson
	 

	 	 
	 	 
	 

	 	 	 	ADVENTRX Pharmaceuticals, Inc.

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EXHIBIT A

CONSULTING AGREEMENT

8exv10w3

 

Exhibit 10.3

ADVENTRX PHARMACEUTICALS, INC.

CONSULTING AGREEMENT

     This Consulting Agreement (this “Agreement”) is dated February 2, 2007 but will become
effective (the “Effective Date”) as of and concurrent with the termination of the
employment relationship of Robert A. Daniel , an individual resident of the State of California
(“Consultant”), with ADVENTRX Pharmaceuticals, Inc., a Delaware corporation (the
“Company”).

     1. Consulting Relationship. During the term of this Agreement, Consultant will
provide consulting services (the “Services”) to the Company as described on Exhibit
A attached to this Agreement. Consultant represents that Consultant is duly licensed (as
applicable) and has the qualifications, the experience and the ability to properly perform the
Services. Consultant shall use Consultant’s best efforts to perform the Services such that the
results are satisfactory to the Company and in conformance with the Code of Professional Ethics of
the AICPAA. Consultant shall provide Services only as requested by the Company.

     2. Fees. As consideration for the Services to be provided by Consultant and other
obligations, the Company shall pay to Consultant the amounts specified in Exhibit B
attached to this Agreement at the times specified therein.

     3. Expenses. Consultant shall not be authorized to incur on behalf of the Company any
expenses.

     4. Term and Termination. Consultant shall serve as a consultant to the Company for a
period commencing on the Effective Date and terminating upon written notice of termination from the
Company to Consultant or from Consultant to the Company; provided, however, that the
Company may not terminate this Agreement prior to March 30, 2007 unless Consultant is in material
breach of this Agreement, the Confidentiality Agreement (as defined below) or that certain
Separation Agreement and Release of Claims by and between the Company and Consultant and initially
provided to Consultant on January 22, 2007 (and provided to Consultant as amended on January 30,
2007 and as further amended on February 1, 2007).

     5. Independent Contractor. Consultant’s relationship with the Company will be that of
an independent contractor and not that of an employee.

          (a) Method of Provision of Services. Consultant shall be solely responsible for
determining the method, details and means of performing the Services. Consultant may not employ or
engage the service of any third parties to perform the Services required by this Agreement.

          (b) No Authority to Bind Company. Neither Consultant, nor any partner, agent or
employee of Consultant, has authority to enter into contracts that bind the Company or create
obligations on the part of the Company without the prior written authorization of the Company.

 

 

          (c) No Benefits. Consultant acknowledges and agrees that Consultant (or Consultant’s
employees, if Consultant is an entity) will not be eligible for any Company employee benefits and,
to the extent Consultant (or Consultant’s employees, if Consultant is an entity) otherwise would be
eligible for any Company employee benefits but for the express terms of this Agreement, Consultant
(on behalf of itself and its employees) hereby expressly declines to participate in such Company
employee benefits.

          (d) Withholding; Indemnification. Consultant shall have full responsibility for
applicable withholding taxes for all compensation paid to Consultant, its partners, agents or its
employees under this Agreement, and for compliance with all applicable labor and employment
requirements with respect to Consultant’s self-employment, sole proprietorship or other form of
business organization, and Consultant’s partners, agents and employees, including state worker’s
compensation insurance coverage requirements and any US immigration visa requirements. Consultant
agrees to indemnify, defend and hold the Company harmless from any liability for, or assessment of,
any claims or penalties with respect to such withholding taxes, labor or employment requirements,
including any liability for, or assessment of, withholding taxes imposed on the Company by the
relevant taxing authorities with respect to any compensation paid to Consultant or Consultant’s
partners, agents or its employees.

     6. Supervision of Consultant’s Services. All of the services to be performed by
Consultant, including but not limited to the Services, will be as agreed between Consultant and the
Company’s chief financial officer. Consultant will be required to report to the Company’s chief
financial officer concerning the Services performed under this Agreement. The nature and frequency
of these reports will be left to the discretion of the Company’s chief financial officer.

     7. Confidentiality Agreement. Consultant shall sign, or has signed, the Company’s
current Confidential Information and Invention Assignment Agreement (the “Confidentiality
Agreement”) on or before the Effective Date.

     8. Conflicts with this Agreement. Consultant represents and warrants that neither
Consultant nor any of Consultant’s partners, employees or agents is under any pre-existing
obligation in conflict or in any way inconsistent with the provisions of this Agreement. Consultant
represents and warrants that Consultant’s performance of all the terms of this Agreement will not
breach any agreement to keep in confidence proprietary information acquired by Consultant in
confidence or in trust prior to commencement of this Agreement. Consultant warrants that Consultant
has the right to disclose and/or or use all ideas, processes, techniques and other information, if
any, which Consultant has gained from third parties, and which Consultant discloses to the Company
or uses in the course of performance of this Agreement, without liability to such third parties.
Notwithstanding the foregoing, Consultant agrees that Consultant shall not bundle with or
incorporate into any deliveries provided to the Company herewith any third party products, ideas,
processes, or other techniques, without the express, written prior approval of the Company.
Consultant represents and warrants that Consultant has not granted and will not grant any rights or
licenses to any intellectual property or technology that would conflict with Consultant’s
obligations under this Agreement. Consultant will not knowingly infringe upon any copyright,
patent, trade secret or other property right of

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any former client, employer or third party in the
performance of the Services required by this Agreement.

     9. Miscellaneous.

          (a) Amendments and Waivers. Any term of this Agreement may be amended or waived only
with the written consent of the parties.

          (b) Sole Agreement. This Agreement, including the Exhibits hereto, constitutes the
sole agreement of the parties and supersedes all oral negotiations and prior writings with respect
to the subject matter hereof. The foregoing notwithstanding, the Company and Consultant
acknowledge that this Agreement is entered into in connection with that certain Severance Agreement
and Release of All Claims, dated of even date herewith (the “Severance Agreement”), and that this
Agreement has no effect on the Severance Agreement or any of the documents or other agreements
referenced therein or executed in connection therewith.

          (c) Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight
delivery service or confirmed facsimile, 48 hours after being deposited in the regular mail as
certified or registered mail (airmail if sent internationally) with postage prepaid, if such notice
is addressed to the party to be notified at such party’s address or facsimile number as set forth
below, or as subsequently modified by written notice.

          (d) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California as applied to agreements among
California residents entered into and to be performed entirely within California.

          (e) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good faith.
In the event that the parties cannot reach a mutually agreeable and enforceable replacement for
such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of
the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of
the Agreement shall be enforceable in accordance with its terms.

          (f) Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together will constitute one and the same instrument.

          (g) Arbitration. Any dispute or claim arising out of or in connection with any
provision of this Agreement will be finally settled by binding arbitration in San Diego County,
California, in accordance with the rules of the American Arbitration Association by one arbitrator
appointed in accordance with said rules. The arbitrator shall apply California law, as applied to
agreements among California residents entered into and to be performed entirely within California,
to the resolution of any dispute. Judgment on the award rendered by the arbitrator may be entered
in any court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to
any court of competent jurisdiction for preliminary or interim

-3-

 

equitable relief, or to compel
arbitration in accordance with this paragraph, without breach of this arbitration provision. This
Section 10(g) shall not apply to the Confidentiality Agreement.

          (h) Advice of Counsel. EACH PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT,
SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND HAS READ
AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE
CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

[Signature Page Follows]

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     The parties have executed this Agreement on the respective dates set forth below.

	 	 	 	 	 
	 	 	ADVENTRX PHARMACEUTICALS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gregory P. Hanson
	 

	 	 	 	 
 
	 

	 	Title:
	 	SVP & CFO
	 

	 	 	 	 
 
	 

	 	Address:
	 	6725 Mesa Ridge Road, Suite 100
	 

	 	 	 	San Diego, CA 92121
	 
	 	 	 	 
	 	 	ROBERT A. DANIEL
	 
	 	 	 	 
	 	 	/s/ Robert A. Daniel
	 	 	 
	 

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	5639 Amaga Dr., #309
	 

	 	 	 	La Mesa, CA 91942

 

 

EXHIBIT A

DESCRIPTION OF CONSULTING SERVICES

	 	 	 
	Description
of Services	 	Schedule/Deadline
	 
	 	 
	Consultant will:

	 	Not applicable

	 	•	 	Make himself available during normal
business hours at the Company’s offices to
perform consulting services as requested by
the Company.	 
	 	 	 	 	 
	 	•	 	Respond to inquiries of the
Company’s personnel regarding financial and
accounting matters, and such other matters
related to the Company regarding which
Consultant has knowledge.	 
	 	 	 	 	 
	 	•	 	Make himself available and use his
best efforts in the transition of his former
duties to designated representatives or
employees of the Company. Such efforts
include, but are not limited to, providing
corporate records, files and other
materials.	 
	 	 	 	 	 
	 	•	 	Provide advice and assistance
regarding special projects, conference
appearances or any other matter consistent
with Consultant’s background, skills and
experience.	 

 

 

EXHIBIT B

COMPENSATION

From the Effective Date through March 30, 2007, provided this Agreement has not been
terminated, the Company will compensate Consultant as follows (pro-rated for any portion of a
calendar month during which this Agreement is effective based on a 30-day month):

          On February 28, 2007, an amount equal to $6,751.57

          On March 15, 2007, an amount equal to $6,751.57

          On March 30, 2007, an amount equal to $6,751.57

Payment will be due within 5 days of each date set forth above or, if this Agreement is
terminated prior to March 30, 2007, within 5 days of the date of termination.

Following March 30, 2007 and in the event this Agreement is not terminated, the Company and
Consultant will mutually agree in writing upon the compensation to be paid by the Company to
Consultant for on-going services, if any, to be provided by Consultant to the Company. For
clarification, following March 30, 2007 (a) the Company will have no obligation whatsoever to
compensate Consultant until such time as such compensation is agreed upon in writing, if at all
and (b) Consultant will have no obligation whatsoever to provide services to the Company until
such time as such compensation is agreed upon in writing, if at all.

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