Document:

ex103.htm

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made effective as of the 7th day of November, 2012 (the “Effective Date”).

AMONG:

VANITY EVENTS HOLDING, INC., a corporation formed pursuant to the laws of the State of Delaware and having an office for business located at 1111 Kane Concourse, Suite 304, Bay Harbor Islands, FL 33154 (“Employer");

AND

Philip D. Ellett, an individual having an address at 106 Cheerful Court, Austin, TX  78734 (“Employee”).

WHEREAS, Employee has agreed to a position as an Employee of Employer, and Employer has agreed to hire Employee as such, pursuant to the terms and conditions of this Employment Agreement (the “Agreement”).

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises and the mutual covenants, agreements, representations and warranties contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee and Employer hereby agree as follows:

ARTICLE 1

EMPLOYMENT

Employer hereby agrees to the employment of Employee as Chief Executive Officer (CEO), Chief Financial Officer (CFO), Principal Executive Officer, Principal Financial Officer and Secretary, and Employee hereby affirms and accepts such employment by Employer for the “Term” (as defined in Article 3 below), upon the terms and conditions set forth herein.

ARTICLE 2

DUTIES

During the Term, Employee shall serve Employer faithfully, diligently and to the best of his ability, under the direction and supervision of the Board of Directors (the “Board”) of Employer and shall use his best efforts to promote the interests and goodwill of Employer and any affiliates, successors, assigns, subsidiaries, and/or future purchasers of Employer. Employee shall render such services during the Term at Employer’s principal place of business or at such other place of business as may be determined by the Board, as Employer may from time to time reasonably require of him, and shall devote all of his business time to the performance thereof. Employee shall have those duties and powers as generally pertain to each of the offices of which he holds, as the case may be, subject to the control of the Board.

ARTICLE 3

TERM

This Agreement shall begin effective as of the Effective Date and shall continue on a month-to-month basis until terminated by either party upon providing the other party with 30 days prior written notice (the "Term").

 

 

  

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ARTICLE 4

COMPENSATION

Salary

4.1

Employer shall pay to Employee monthly a gross salary of Seven Thousand Dollars ($7,000.00). All payments shall be made in monthly installments with the payroll practices of Employer for its senior executives. In addition, Employer shall issue to Employee Two Million (2,000,000) shares of Vanity Events Holding, Inc. common stock. The shares shall be issued with a substantial right of forfeiture as follows: The Employee cannot transfer the shares and must return all shares to the Employer if he terminates employment within two years from date of issuance.

Expense Reimbursement

4.2

Employer shall reimburse Employee for reasonable and necessary expenses incurred by him on behalf of Employer in the performance of his duties hereunder during the Term in accordance with Employer's then customary policies, provided that such expenses are adequately documented.

ARTICLE 5

OTHER EMPLOYMENT

During the Term of this Agreement, Employee shall devote a portion of his business and professional time and effort, attention, knowledge, and skill to the management, supervision and direction of Employer’s business and affairs as Employee’s highest professional priority. Except as provided below, Employer shall be entitled to all benefits, profits or other issues arising from or incidental to all work, services and advice performed or provided by Employee. Provided that the activities listed below do not materially interfere with the duties and responsibilities under this Agreement, nothing in this Agreement shall preclude Employee from devoting time for:

	  	
(a)

	
Serving as an officer, director, member, founder, employee or consultant for any other business or activity which does not conflict with the business of the Employer as such may then be conducted by Employer from time to time;

	  	
(b)

	
Serving as a member of any organization involving no conflict of interest with Employer, provided that Employee must obtain the written consent of the Board;

	  	
(c)

	
Serving as a consultant in his area of expertise to government, commercial and academic panels where it does not conflict with the interests of Employer; and

	  	
(d)

	
Managing his personal investments or engaging in any other non-competing business

ARTICLE 6

CONFIDENTIAL INFORMATION/INVENTIONS

Confidential Information

6.1

Employee shall not, in any manner, for any reasons, either directly or indirectly, divulge or communicate to any person, firm or corporation, any confidential information concerning any matters not generally known or otherwise made public by Employer which affects or relates to Employer’s business, finances, marketing and/or operations, research, development, inventions, products, designs, plans, procedures, or other data (collectively, “Confidential Information”) except in the ordinary course of business or as required by applicable law. Without regard to whether any item of Confidential Information is deemed or considered confidential, material, or important, the parties hereto stipulate that as between them, to the extent such item is not generally known, such item is important, material, and confidential and affects the successful conduct of Employer’s business and goodwill, and that any breach of the terms of this Section 6.1 shall be a material and incurable breach of this Agreement. Confidential Information shall not include information in the public domain at the time of the disclosure of such information by Employee or information that is disclosed by Employee with the prior consent of the Board.

Documents

6.2

Employee further agrees that all documents and materials furnished to Employee by Employer and relating to the Employer’s business or prospective business are and shall remain the exclusive property of Employer. Employee shall deliver all such documents and materials, not copied, to Employer upon demand therefore and in any event upon expiration or earlier termination of this Agreement. Any payment of sums due and owing to Employee by Employer upon such expiration or earlier termination shall be conditioned upon returning all such documents and materials, and Employee expressly authorizes Employer to withhold any payments due and owing pending return of such documents and materials.

 

 

  

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Inventions

6.3

All ideas, inventions, and other developments or improvements conceived or reduced to practice by Employee, alone or with others, during the Term of this Agreement, whether or not during working hours, that are within the scope of the business of Employer or that relate to or result from any of Employer’s work or projects or the services provided by Employee to Employer pursuant to this Agreement, shall be the exclusive property of Employer. Employee agrees to assist Employer, at Employer’s expense, to obtain patents and copyrights on any such ideas, inventions, writings, and other developments, and agrees to execute all documents necessary to obtain such patents and copyrights in the name of Employer.

Disclosure

6.4

During the Term, Employee will promptly disclose to the Board of Directors of Employer full information concerning any interest, direct or indirect, of Employee (as owner, shareholder, partner, lender or other investor, director, officer, employee, consultant or otherwise) or any member of his immediate family in any business that is reasonably known to Employee to purchase or otherwise obtain services or products from, or to sell or otherwise provide services or products to, Employer or to any of its suppliers or customers.

ARTICLE 7

SURVIVAL

Employee agrees that the provisions of Articles 7 and 8 shall survive expiration or earlier termination of this Agreement for any reasons, whether voluntary or involuntary, with or without cause, and shall remain in full force and effect thereafter. Notwithstanding the foregoing, if this Agreement is terminated upon the dissolution of Employer, the filing of a petition in bankruptcy by Employer or upon an assignment for the benefit of creditors of the assets of Employer, Articles 7 and 8 shall be of no further force or effect.

ARTICLE 8

INJUNCTIVE RELIEF

Employee acknowledges and agrees that the covenants and obligations of Employee set forth in Articles 6 and 7 with respect to non-competition, non-solicitation, confidentiality and Employer’s property relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will cause Employer irreparable injury for which adequate remedies are not available at law. Therefore, Employee agrees that Employer shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain Employee from committing any violation of the covenants and obligations referred to in this Article 8. These injunctive remedies are cumulative and in addition to any other rights and remedies Employer may have at law or in equity.

ARTICLE 9

BENEFICIARIES OF AGREEMENT

This Agreement shall inure to the benefit of Employer and any affiliates, successors, assigns, parent corporations, subsidiaries, and/or purchasers of Employer as they now or shall exist while this Agreement is in effect.

ARTICLE 10

GENERAL PROVISIONS

No Waiver

10.1

No failure by either party to declare a default based on any breach by the other party of any obligation under this Agreement, nor failure of such party to act quickly with regard thereto, shall be considered to be a waiver of any such obligation, or of any future breach.

 

 

  

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Modification

10.2

No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the parties to be charged therewith.

Choice of Law/Jurisdiction

10.3

This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to any conflict-of-laws principles. Employer and Employee hereby consent to personal jurisdiction before all courts in the State of New York, and hereby acknowledge and agree that New York is and shall be the most proper forum to bring a complaint before a court of law.

Entire Agreement

10.4

This Agreement embodies the whole agreement between the parties hereto regarding the subject matter hereof and there are no inducements, promises, terms, conditions, or obligations made or entered into by Employer or Employee other than contained herein.

Severability

10.5

All agreements and covenants contained herein are severable, and in the event any of them, with the exception of those contained in Articles 1 and 4 hereof, shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein.

Headings

10.6

The headings contained herein are for the convenience of reference and are not to be used in interpreting this Agreement.

Independent Legal Advice

10.7

Employer has obtained legal advice concerning this Agreement and has requested that Employee obtain independent legal advice with respect to same before executing this Agreement. Employee, in executing this Agreement, represents and warranties to Employer that he has been so advised to obtain independent legal advice, and that prior to the execution of this Agreement he has so obtained independent legal advice, or has, in his discretion, knowingly and willingly elected not to do so.

No Assignment

10.8

Employee may not assign, pledge or encumber his interest in this Agreement nor assign any of his rights or duties under this Agreement without the prior written consent of Employer.

[Signature page follows]

 

 

  

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IN WITNESS WHEREOF the parties have executed this Agreement effective as of the day and year first above written.

	  	
Employer:  VANITY EVENTS HOLDING, INC.

	  	  
	  	  	  	  	  
	
By:

	
/s/Scott Weiselberg

	  	  	  
	  	
Name:  Scott Weiselberg

	  	  	  
	  	
Title: Director

 

	  	  	  
	  	  	  	  	  
	  	
Employee:

 

	  	  	  
	  	  	  	  	  
	
By:

	
/s/Phil Ellett

	  	  	  
	  	Name: Philip D. Ellett	  	  	  
	  	  	  	  	  

 

 

 

 

 

 

5exhibit101.htm

Exhibit 10.1

CONSULTANT AGREEMENT

 

THIS CONSULTANT AGREEMENT is made between Charles & Colvard, Ltd. (“Company”) and the person or entity signing below as “Consultant” (“Consultant”).

1.           Services.  Consultant shall provide to Company during the Term certain consulting services to develop and oversee the process for the growth and management of all business, operating and staffing aspects of Charles & Colvard Direct, LLC d/b/a Lulu Avenue (“Services”), not to exceed estimated hours provided by Consultant without prior notification and approval by Company, all as further described on the attached Annex A, incorporated herein by reference.  In performing the Services, Consultant shall comply with all applicable laws, rules and regulations and written guidelines or policies provided by Company.

2.           Compensation.  Company will pay Consultant a flat rate of $1,500 per day two (2) days per week not to exceed the scope outlined in Annex A.

Additionally, Consultant will receive reimbursement of out-of-pocket expenses, in accordance with Company's Travel policy, incurred in the performance of Consultant’s service on behalf (and with the prior written authorization) of the Company, including but not limited to, actual costs incurred for travel (airfare, meals and parking per diem, lodging, car rental, etc.), express mail, document production, telephone, and similar business expenses provided Consultant delivers an itemized report of such expenses, together with receipts or other evidence of payment reasonably satisfactory to the Company.

3.          Consultant.  The parties agree that the legal relationship of Consultant to Company is strictly a Consultant relationship and nothing in this Agreement shall be deemed to create a joint venture, agency, partnership, or employer-employee relationship between the parties.  Neither party shall have any power to enter into any contract or commitment in the name of, or on behalf of, the other party or to bind the other party in any respect whatsoever.  Consultant shall not be entitled to any benefits, rights or privileges provided by Company to its employees.

4.           Employment Taxes and Benefits.  Consultant must comply with all tax laws applicable to a self-employed individual or  Consultant, including the filing of any necessary tax returns and the payments of all income and self-employment taxes.  All commissions paid to Consultant shall be reported as 1099 income, to the extent such commissions meet the minimum required for such reporting under applicable law.  Company shall not be required to withhold from commissions paid hereunder any state or federal income taxes or to make payments for Social Security (“FICA”) tax, unemployment insurance, or any other payroll taxes.  In the event Consultant fails to comply with tax laws applicable to a Consultant or a self-employed individual, Consultant will indemnify Company and hold Company harmless from and against all claims, damages, losses and expenses, including reasonable fees and expenses of attorneys and other professionals, relating to any obligation imposed by law on Company to pay any withholding taxes, social security, unemployment or disability insurance, or similar items in connection with compensation received by Consultant pursuant to this Agreement.  Consultant will not be entitled to participate in any plans, arrangements, or distributions by Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits for Company’s employees.

5.           Confidential Information.  Consultant understands that during the Term, Consultant and its employees and agents may be exposed to Confidential Information.  At all times during and after the Term, Consultant will retain and cause such Confidential Information to be retained in confidence and use it, and cause it to be used, only for purposes of this Agreement.  “Confidential Information” means all information of Company or its affiliates that is not generally available to the public, whether written, oral, or computer based, including without limitation all business, financial, technical and product information, data, methods, processes, formulas, patterns, techniques, plans, Intellectual Property and derivative works of all of the foregoing.  All documents and information, including computer based information, disclosed to Consultant by Company, together with all copyrights and other proprietary rights therein, shall be and remain the exclusive property of Company and shall constitute Confidential Information, and Consultant shall return the originals and all copies thereof promptly to Company in good order without request upon completion of the Services, termination of this Agreement, or at any other time upon Company’s request.  Consultant shall not copy or use or permit the use of the above-described documents or information except for the sole purpose of performing the Services.  Upon any termination or expiration of this Agreement, Consultant shall identify to Company all potential customers with whom Consultant had contact within the thirty (30) day period prior to such termination or expiration and deliver to Company any property Company loaned to Consultant for use in performing the Services (including, but not limited to, keys, credit cards, files, contracts, proposals, work in process, data, research materials, other items of business information concerning any of Company’s clients, or Company’s business or business methods, including all copies thereof) in the same condition in which Company originally provided such property to Consultant.  In addition, all inventions, copyrights, or other intellectual property (“Intellectual Property”) created or developed by Consultant or

 

  

  

  

Consultant’s employees, associates or Consultants during the course of providing the Services shall be assigned to Company.

 

6.           Non-Disparagement.  Consultant agrees not to make any disclosures, issue any statements or otherwise cause to be disclosed any information which is designed, intended or might reasonably be anticipated to disparage Company, its officers, directors, its business, services, Products or personnel.

 

7.           No Conflicting Obligations.  Consultant’s performance of all the terms of this Agreement does not and will not breach any agreement to keep in confidence information acquired in confidence prior to Consultant’s engagement hereunder.  Consultant represents that he has not entered into, and will not enter into, any agreement either written or oral in conflict herewith.

8.           Termination.  The term of this Agreement shall commence on the date hereof and shall continue thereafter for one (1) year  (the “Term”), with allotment of time not to exceed eight (8) days per month, unless notified by either party of the need to increase or decrease such daily allotments that may be required to achieve successful results of set goals.  This Agreement shall automatically renew unless notification by either party to terminate the Agreement is received in writing thirty (30) prior to the actual termination date.  Notwithstanding the foregoing, Company may terminate this Agreement at any time upon 15 days prior written notice.  Upon termination by Company, its sole obligation to Consultant shall be to pay to Consultant any compensation for Services due and owing pursuant to the terms of this Agreement through the date of termination.  Sections 4-6 and 9-12 shall survive any termination or expiration of this Agreement.

9.           Insurance.  Consultant agrees to maintain liability, workers’ compensation, errors and omission and/or other insurance in such amounts and with such carriers as Company may reasonably request, each of which policies shall, upon request of Company, name Company as an additional insured.

 

 

10.         Indemnification.  Consultant shall defend, indemnify, and hold harmless Company, its officers, directors, and employees from any claims, losses, attorneys’ fees, damages, liabilities, costs, expenses, or suits for injury to any person (including Consultant, its employees, agents and sub-contractors), damage to or loss of property (including Company’s information assets and systems), or any other claim arising out of or resulting from any act or omission of Consultant, or its employees, agents, or subcontractors; the performance of this Agreement or the Services; Company’s use of Intellectual Property provided by Consultant to Company; the presence of Consultant or its employees, agents or subcontractors on Company’s premises; or the driving of Company motor vehicles.  In no event, however, shall Consultant be responsible for the sole negligence or willful misconduct of Company.

11.         Limitation of Liability.  In no event shall Company be liable for special, indirect, incidental or consequential damages under or in connection with this Agreement or the Services, including without limitation lost profits, to the full extent such may be disclaimed by law, even if Company has been advised of the possibility of such damages.

12.         Other Terms and Conditions.  Consultant represents and warrants that each employee, agent, or subcontractor who performs work under this Agreement has been informed of the obligations contained herein and has agreed in writing to be bound by and will comply with them (Company shall be a third party beneficiary of such agreement and Consultant shall provide Company with copies of such writings).  Neither this Agreement nor any of the rights or obligations hereunder may be assigned, transferred or subcontracted by either party without the prior written consent of the other party.  This Agreement constitutes the full understanding of the parties and a complete statement of the terms of their Agreement with respect to the subject matter herein and supersedes and cancels all prior agreements, correspondence, undertakings and communications of the parties, oral or written, respecting such subject matter.  Neither this Agreement nor any provision hereof may be amended, changed, modified or waived except by a written instrument signed by the parties hereto.  The construction, validity, interpretation and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina, without regard to the conflicts of law principles thereof.  In case any provision of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof will not in any way be affected or impaired thereby.  Consultant agrees and acknowledges that Company would be damaged irreparably by Consultant's failure to perform its obligations to Company hereunder; accordingly, Company shall be entitled to enforce this Agreement by injunctive and other available relief, including, but not limited to, specific performance.

Signature page follows

 

  

  

  

Signature Page to Consultant Agreement

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date specified below.

Dated:       September 28, 2012

CHARLES & COLVARD, LTD.                                                                                  CONSULTANT:  ANNE BUTLER

By:          By:        /s/ Randy N. McCullough                      By:        /s/ Anne Butler

Name:    Randy N. McCullough                                                                         Name:     Anne Butler                                                                

Title:      President & CEO                                                                Title:       Consultant 

 

  

  

  

ANNEX A

Services: Develop and oversee the process for the growth and management of Charles & Colvard Direct, LLC d/b/a Lulu Avenue (“Services”) as outlined below:

 

	
Scope of Work includes:

	
Estimated Hours

	
1. Identify and acquire the necessary talent for Lulu Avenue

	  
	
2.  Analyze the business to maximize and keep focus on the goal of break even and beyond.

	  
	
3. Review strategy in the areas of:

- Sales

- Marketing

- Operations

- Finance

	  
	  	
2 days per week

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