Document:

f8k082213ex10i_intelligent.htm

 

Exhibit 10.1

DISTRIBUTION AGREEMENT

THIS DISTRIBUTION AGREEMENT (this “Agreement”) is made effective the 22 day of August, 2013 (the “Effective Date”) by and between SCS Lighting Solutions Inc. with offices at 25801Obrero Drive, Mission Viejo, CA, 92691 (the “Company”)  and  ___

 

Devon Jones, CEO

Intelligent Highway Solutions, Inc.

8 Light Sky Ct. Sacramento, CA 95828

 

Phone: 916-995-3050 

Fax:    916-379-0338

www.intelligenthighwaysolutions.com

 (hereinafter  “the DISTRIBUTER”). (Company and Distributer are hereinafter referred to collectively as the “Parties”).

WITNESS:

WHEREAS, the Company desires to supplement its sales and marketing of certain products (as defined below) by obtaining the assistance of the Distributer; and

WHEREAS, the Distributer desires to provide such services to the Company.

NOW THEREFORE, the Parties agree as follows:

1.   APPOINTMENT.  Company hereby appoints Intelligent Highway Solutions as an exclusive Distributer to solicit the sale of SCS Lighting Solutions Products  (the “Products”) for markets in Sacramento, CA or in additional market locations as jointly agreed to by the Company and Distributer.  The Distributer shall devote its best efforts to promote the company’s interests, and shall perform its duties and responsibilities faithfully, diligently and to the best of its ability, consistent with sound business practices, it being understood that in no event shall Distributer make any representation, guarantee or warranty concerning the Products except as expressly authorized by Company. The Distributer shall devote a portion but not all of his working time to the business and affairs of the Company. If the Distributer does not make sales in the first year with revenues to SCS Lighting Solutions in the amount of $3 million USD, the distribution agreement will become non-exclusive.

 

Distributer warrants to Company that it does not currently represent or promote any lines of products that compete with the Products.  During the term of this Agreement, Distributer shall not represent, promote or otherwise try to sell within the Territory any lines of products that, in Company’s judgment, compete with the Products covered by this Agreement.

 

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1.1  The Distributer will be required to sign a SCS Light Solutions non-disclosure agreement (NDA) upon execution of this agreement.

 

	
  

	
1.2  The Company will maintain any existing customers in Sacramento, CA and will directly handle any customers which contact the Company directly or which the Company becomes aware of without any influence from the Distributer. The Company may, at its discretion designate a Company customer to the Distributer, upon distributers approval.

2.           ACCEPTANCE.  The Distributer accepts said appointment, and agrees, at its own expense, to solicit offers for the purchase of Products and refer such offers to Company for acceptance.

3.           TERM.  The initial term of this Agreement shall be for a period of One Year  from the Effective Date.  This Agreement shall automatically renew for additional one (1) year term increments, unless either party elects to terminate this Agreement at the end of the then current term by giving the other party notice, not less than sixty (60) days prior to the end of the then current term.

 

4.           INDEPENDENT CONTRACTOR; AUTHORITY; REPORTING. The Distributer acknowledges and agrees that it is not an agent or employee of the Company and is not authorized to accept any orders on behalf of the Company.  The Distributer shall keep the Company fully informed of its activities on behalf of the Company and the status of the exclusive accounts, including frequent conference calls with Company leadership.

Distributer is an independent contractor, and nothing contained in this Agreement shall be construed to (i) give wither party the power to direct and control the day-to-day activities of the other, (ii) constitute the parties as partners, joint ventures, co-owners or otherwise, (iii) allow Distributer to create or assume any obligation on behalf of Company for any purpose whatsoever.  Distributer is not an employee of Company and is not entitled to any employee benefits.  Distributer shall be responsible for paying all income taxes and other taxes charged to Distributer on amounts earned hereunder.  All financial and other obligations associated with Distributer’s business are the sole responsibility of Distributer. Distributer shall provide itself with, and be solely responsible for (i) such facilities, employees, and business organization, and (ii) such permits, licenses, and other forms of clearance from governmental or regulatory agencies, if any, as are necessary for the conduct of Distributer’s business operations in accordance with this Agreement.

 

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5.           ACCEPTANCE OF OFFERS.  The Distributer shall forward all offers received for the Products to the Company at the Company’s office as specified above. The Company shall have the absolute right in its sole discretion to accept, reject, cancel, or modify any quotation or order, in whole or in part.  Further, Company shall have the sole right of credit approval or credit refusal for customers in all cases.

 

6.   ISTRIBUTER PRICE LIST.

   6.1 The Distributer shall purchase SCS Lighting Products from its Distributers price list, which is subject to modification or change without notice.

7.           TERMINATION OR BREACH.  In the event that either party shall breach any of its obligations hereunder, the other may, in addition to any other remedy it may have, terminate this Agreement immediately by electronic (e-mail) or paper written notice to the Distributer. This Agreement may be terminated by either party, immediately by either electronic (e-mail) or paper written notice, if the other party shall be adjudicated bankrupt or any receiver or trustee is appointed for it or for a substantial portion of its assets or it shall make an assignment of substantially all of its assets for the benefit of creditors or shall become insolvent in either law or equity or go out of business or cease operations.

8.           COVENANTS OF THE DISTRIBUTER.  In order to induce the Company to enter into this Agreement, the Distributer hereby covenants and agrees as follows:

 

  8.1  Prior Restrictions.  By accepting this engagement with Company, the Distributer agrees that the Distributer is not currently bound by any agreement that could prohibit or restrict it from being in relationship with the Company or from performing any duties under this Agreement.

             8.2  Records.   All papers, books and records of every kind and description relating to the business and affairs of the Company, or any of its affiliates, (excluding those prepared by the Distributer in the conduct of its business and personal notes prepared by the Distributer) but including those prepared by or at the direction of the Company, shall be the sole and exclusive property of the Company, and the Distributer shall surrender them to the Company immediately upon expiration of the Term and at any time upon request by the Company.  Moreover, Distributer shall maintain and make available to Company accurate books, records, and accounts relating to the business of Distributer with respect to the Products.

 8.3  Indemnification. Distributer shall indemnify and hold Company harmless from any and all claims, damages or lawsuits (including reasonable attorneys’ fees) arising out of negligence, malfeasant acts or infringement of any intellectual property including, but not limited to, copyright, trademark, patent and trade secret, by Representative, its employees or its agents.

 

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  8.4  Changes. Distributer shall promptly advise Company of (i) any changes in Distributer’s status, organization, and similar matters, (ii) any changes to Distributer’s key personnel and status of any major customers of Company in the Territory that Distributer has knowledge of; and (iii) any political, financial, legislative, industrial or other events in the Territory that could affect the mutual business interests of Distributor and Company, whether harmful or beneficial and of which Distributer has knowledge.

9.           COVENANTS of the COMPANY

       9.1  Company shall hold the Distributer harmless for any actions, legal or otherwise, taken by Company, its agents or sub-agents relating to the sale of Company products that is inconsistent with this Agreement, or otherwise outside their scope of authority. Company will hold the Distributer harmless for any claims made, legal or otherwise, including attorney fees and related expenses, relating to product liability claims, environmental claims, or warranties claims, general, specific, or limited, whether made by consumers or governmental authority, regardless of the source or jurisdiction.

      9.2  Changes:  Company shall promptly advise Distributer of (i) any changes in Company’s status, organization, and similar matters, (ii) any changes to Company’s key personnel and status of any major customers of Company in the Territory that Company has knowledge of; and (iii) any political, financial, legislative, industrial or other events in the Territory that could affect the mutual business interests of Representative and Company, whether harmful or beneficial and of which Company has knowledge.

10.        CONFIDENTIALITY/TRADEMARKS and TRADE NAMES.    Distributer acknowledges that by reason of its relationship to Company hereunder it will have access to certain information and materials concerning Company’s business plans, customers and products that is confidential and of substantial value to the Company, which value would be impaired if such information were disclosed to third parties.  Distributer agrees that it shall not use in any way for its own account or the account of any third party, nor disclose to any third party, any such confidential information revealed to it by Company.  Company shall advise Distributer whether or not it considers any particular information or materials to be confidential.  In the event of termination of the Agreement, for any reason, there shall be no use by Distributer of any confidential information of Company, and Distributer shall not manufacture or have manufactured any products utilizing Company’s patents, inventions, copyrights, know-how or trade secrets.

 

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During the terms of this Agreement, Distributer shall have the right to indicate to prospective customers that it is an authorized representative of Company’s Products and to advertise (within the Territory), at its own expense, such Products under the trademarks, marks, and trade names that Company may adopt from time to time (herein “company’s Trademarks”).  Nothing herein, however, shall grant Distributer any right, title, or interest in Company’s Trademarks.  At no time during or after the term of this Agreement shall Distributer challenge or assist others to challenge Company’s Trademarks or the registration thereof or attempt to register any trademarks, marks or trade names confusingly similar to those of Company.

11.        MISCELLANEOUS

 11.1  This Agreement adds to the understanding of the parties relating to its subject matter; shall be governed by and interpreted in accordance with the laws of the State of Delaware, U.S.A., and shall not be assignable or otherwise transferable by either party and any attempted assignment in conflict herewith shall be void.

 11.2  All strategic meetings will take place within the continental USA.

 11.3  Distributer shall participate in planning meetings in the continental USA, provided Company provides reasonable notice (72 hours) of the time, place and location to Distributer.

 11.4  Notices hereunder shall be mailed by certified or registered mail, overnight courier of national reputation, or e-mailed and confirmed by electronic receipt notification to the address below or such other address as may be designated by written notice.  Notices by electronic means shall be effective as of the date confirmed.

 

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       If to the Distributer:

 

 Devon Jones, CEO

 IntelligentHighwaySolutions,Inc.

 8 Light Sky Ct. Sacramento, CA 95828

 

If to the Company:

 SCS Lighting Solutions

 25801 Obrero Drive, Suite 1

 Mission Viejo, CA

 92691

11.5  The failure of either party to enforce at any time or for any period of time the provisions hereof shall not be construed to be a waiver of such provisions, or of the right of such party thereafter to enforce each and every such provision.  Waiver of any breach shall not be deemed a waiver of any other breach, even of a similar nature

11.6  Neither party shall be liable for delays in performance or nonperformance arising out of strikes, acts of nature, freight embargo, war, acts of terror, civil disturbance or any cause beyond either party’s reasonable control.  Notwithstanding the foregoing, in the event any such delay should exist for a period exceeding sixty (60) days, the party not so delayed shall have the right to terminate this Agreement pursuant to paragraph 7 above.

12.         This Agreement sets forth the entire understanding of the parties relating to the subject matter herein and supersedes any prior discussions or agreements between them.  No modification or amendment to this Agreement shall be effective unless in writing signed by the party to be charged.

 

	Distributer: Devon Jones  	 	 	Thomas C. Dearmin	 
	Intelligent Highway Solutions Inc. 	 	 	SCS Lighting Solutions Inc.	 
	 	 	 	 	 
	Devon Jones	 	 	Thomas C. Dearmin	 
	 	 	 	 	 
	Title: CEO	 	 	Title: President & CEO  	 
	 	 	 	 	 
	
Date: August 22, 2013

	 	 	
Date: August 22, 2013

	 

 

	Page 6	8/24/2013Form of Restricted Stock Unit Award Agreement

Exhibit 10.1

Form of RSU Agreement

[Grant Date]

[Participant Name]

Dear [Participant Name]:

I am very pleased to announce that, effective [Grant Date] (“Grant Date”), the Board of Directors of Universal Technical Institute, Inc. (“Company”) has granted you restricted stock units for [Number of Shares Granted] shares of the Company's common stock under Article 10.2 of the Universal Technical Institute, Inc. 2003 Incentive Compensation Plan, as amended (“Plan”).  This letter serves as the Restricted Stock Unit Agreement (“Agreement”) between the Company and you (“Grantee”).

RECITALS
A.    The Company has adopted the Plan to provide incentives to attract and retain those individuals whose services are considered valuable by providing them an opportunity to own stock in the Company.
B.    The Company believes that entering into this Agreement with you is consistent with those purposes.  Any capitalized term not defined in this Agreement is defined in the Plan.
NOW, THEREFORE, the Company and you agree as follows:
AGREEMENT
1.GRANT OF RESTRICTED STOCK UNITS.  Subject to the terms of this Agreement and the Plan, the Company grants to you [Number of Shares Granted] restricted stock units (“Restricted Stock Units”).  Each Restricted Stock Unit represents the right to receive one share of the Company's common stock (“Stock”), subject to any adjustments pursuant to Section 5.A or 6 of this Agreement or Article 14 of the Plan and subject to the restrictions and conditions of this Agreement and the Plan.    

2.YOUR RIGHTS AS A GRANT RECIPIENT.  The Restricted Stock Units granted pursuant to this award do not and shall not entitle Grantee to any rights of a holder of Stock of the Company.  Grantee shall have no voting rights, dividend rights or other stockholder rights until such time as the Restricted Stock Units are paid out in Stock pursuant to Section 5 hereof, and no dividend equivalents will accrue on the Restricted Stock Units. The rights of Grantee with respect to the Restricted Stock Units shall remain forfeitable at all times prior to the date on which such rights become vested in accordance with Section 4 hereof.  The Restricted Stock Units and your rights and obligations relating to them shall at all times be subject to the provisions of the Plan as in effect from time to time.  The Plan is a part of this Agreement. 

3.TRANSFER RESTRICTIONS.  No Restricted Stock Units granted under this award may be sold, transferred, pledged, assigned, encumbered or otherwise alienated, hypothecated or disposed of, other than by will or by the laws of descent and distribution. Any attempted sale, transfer, pledge, assignment, exchange, alienation hypothecation or disposition of any Restricted Stock Units in violation of this Agreement will be invalid. In the event of Grantee's death, any Stock distributable in settlement of vested Restricted Stock Units will be delivered, at 

the time specified in Section 5 of this Agreement, to Grantee's beneficiary in accordance with, and subject to, the terms and conditions hereof and of the Plan.    

4.CONTINUOUS EMPLOYMENT REQUIREMENT AND VESTING.

A.Continuous Employment Requirement.  Except as provided in Section 4.B of this Agreement or as determined by the Committee pursuant to the Plan, the Grantee must remain in the continuous employ of or service to the Company (or a Subsidiary) throughout the entire period from the Grant Date through each Vesting Date (as defined below), or Grantee will forfeit any unvested Restricted Stock Units and any Stock underlying such Restricted Stock Units.  The Grantee's continuous employment of or service to the Company (or a Subsidiary) will not be deemed to have been interrupted by reason of a transfer of Grantee's employment between the Company and a Subsidiary or an approved leave of absence.

B.Vesting Schedule.  Subject to the terms and conditions of this Agreement, including the requirements of Section 4.A, [____%] of the Restricted Stock Units shall vest on each anniversary of the Grant Date, beginning with the one-year anniversary of the Grant Date (each anniversary, a “Vesting Date”). 

Notwithstanding the foregoing, all Restricted Stock Units shall vest upon (i) your death, (ii) your Disability, or (iii) if, within one year following a Change of Control, your employment with, or service to, the Company is terminated without Cause or you terminate your employment or service for Good Reason.  If your employment with, or service to, the Company is terminated for any other reason, all Restricted Stock Units that are at that time unvested shall be forfeited as provided in Section 10.2(c) of the Plan.  “Cause” shall have the definition set forth in the Plan and shall additionally include your willful and/or gross misconduct that results in significant harm to the Company or its operations, properties, reputation, goodwill or business relationships as determined by the Company in its sole reasonable discretion.
5.PAYOUT OF VESTED RESTRICTED STOCK UNITS.  

A.Form of Payment.  Vested Restricted Stock Units will be paid only in the form of Stock.  Fractional shares of Stock shall not be issuable hereunder.  Unless otherwise determined by the Committee, if the number of shares that would vest pursuant to Section 4.B would result in a fractional share for a Vesting Date, then the number of shares vested at that Vesting Date shall be rounded up to the nearest whole share; provided, however, that the number of shares to vest as of the last Vesting Date shall be rounded down to such number that will result in the total number of shares vesting equaling the total number of Restricted Stock Units set forth in Section 1.  Fractional shares that result from tax withholding pursuant to Section 6 shall be governed by that Section.

B.Timing of Payment.  Unvested Restricted Stock Units shall be reflected in a bookkeeping entry form maintained by the Company.  No shares of Stock shall be issued to Grantee prior to the date(s) on which the Restricted Stock Units vest in accordance with Section 4.  Promptly after any Restricted Stock Units vest pursuant to Section 4, and in no event later than 2 1⁄2 months after the end of the calendar year in which such Restricted Stock Units vest, the Company shall cause to be issued and distributed, in book-entry form, shares of Stock in payment of such Restricted Stock Units to Grantee (or, if the Grantee is deceased, to Grantee's beneficiary designated as permitted by the Plan); provided, however, that if the Restricted Stock Units are characterized as deferred compensation for purposes of Section 409A of the Code, payment of the Restricted Stock Units will be made in a manner that complies with Section 409A. 

6.FEDERAL AND STATE TAXES.  You may incur certain liabilities for federal, state or local taxes in connection with the grant, vesting or payment of the Restricted Stock Units hereunder, and the Company may be required by law to withhold such taxes.  You hereby agree that the Company will withhold all applicable taxes at the time of vesting or payment of the Restricted Stock Units by reducing the number of shares issued to you by that number of shares having an aggregate Fair Market Value which is necessary to satisfy the tax obligation arising from the vesting or payment of the shares; provided, however, that you will be liable for any deficiency.  If the number of shares issuable to you following satisfaction of the tax obligation (as described in the foregoing 

sentence) includes any fractional shares, you agree that the Company may issue to you a cash payment in lieu of such fractional share. The Company or a Subsidiary may, in the discretion of the Committee, provide for or require alternative arrangements to satisfy applicable tax withholding requirements.

7.ADJUSTMENT OF SHARES.  In the event of a change in the Company's capital structure, Article 14 of the Plan shall govern any adjustment to the number of Restricted Stock Units awarded to you pursuant to this Agreement.

8.SECTION 409A.  Notwithstanding Section 5 hereof, in the event that Grantee is entitled to receive shares of Stock as a result of the application of clause (iii) of Section 4.B hereof due to a termination of employment following a Change of Control, and is a “specified employee” (within the meaning of Section 409A of the Code) at the time of such termination of employment, Grantee will not be entitled to receive any such shares of Stock before the date which is 6 months after his separation from service (as such term is defined for purposes of Section 409A of the Code), unless the receipt of such shares prior to such date is permitted under Section 409A, including pursuant to the application of section 1.409A-1(b)(9)(iii) of the Treasury Regulations.

9.COMPLIANCE WITH LAWS; RESTRICTIONS ON AWARD AND STOCK.  Notwithstanding any other provision in the Plan or this Agreement to the contrary, the Company shall not be obligated to issue or deliver any Stock hereunder, unless and until the Board has determined, with the advice of counsel, that the issuance and delivery of such Stock is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed or traded.  All Stock delivered hereunder is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with Federal, state, or foreign jurisdiction, securities or other laws, rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded.  The Committee may place legends on any Stock to reference restrictions applicable to the Stock.  In addition to the terms and conditions provided herein and in the Plan, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.  

10.AMENDMENT OF PLAN AND THIS AGREEMENT.  The Plan may be terminated, amended or modified from time to time as provided therein.  Except as otherwise provided in the Plan, including without limitation, the provisions of Article 14, no termination, amendment or modification of the Plan after the Grant Date will adversely affect in any material way the Restricted Stock Units awarded under this Agreement without the Grantee's written consent.  

11.GOVERNING LAW.  This Agreement shall be governed in all respects, whether as to validity, construction, capacity, performance or otherwise, by the laws of the State of Arizona, without regard to conflicts-of-laws principles that would require the application of any other law.  

12.SEVERABILITY.  If any provision of this Agreement, or the application of any such provision to any person or circumstance, is held to be unenforceable or invalid by any court of competent jurisdiction or under any applicable law, the parties hereto shall negotiate an equitable adjustment to the provisions of this Agreement with the view to effecting, to the greatest extent possible, the original purpose and intent of this Agreement, and in any event, the validity and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

13.ELECTRONIC DELIVERY.  The Company may, in its sole discretion, decide to deliver any documents related to grants awarded under the Plan or future grants that may be awarded under the Plan by electronic means or request Awardees consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

14.ENTIRE AGREEMENT.  This Agreement constitutes the entire, final, and complete agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, promises, understandings, negotiations, representations, and commitments, both written and oral, between the parties hereto with respect to the subject matter hereof.  Neither party hereto shall be bound by or liable for any statement, representation, promise, inducement, commitment or understanding of any kind whatsoever not expressly set forth in this Agreement.

[Signatures Follow]

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and you have signed this Agreement, in each case as of the day and year first written above.  By your acknowledgement below, you accept and agree to abide by the terms of this Agreement and you further agree to be bound by and to comply with all terms and conditions of the Plan.  By your signature below, you acknowledge that you have received a copy of the Plan, and understand that you may receive a copy of the Plan as amended and in effect at any time by requesting a copy from the Company's Secretary.  Please acknowledge that you received this agreement by accepting through electronic submission.  

UNIVERSAL TECHNICAL INSTITUTE, INC.

By:         /s/ Kim McWaters                                
                          Kim McWaters, CEO

I, [Participant Name], hereby acknowledge receipt of the foregoing award as of [Grant Date].

Signature: _________________________________________

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