Document:

ex10-2.htm

Exhibit 10.1

 

UTEC, Inc.

 

STOCK OPTION AGREEMENT DATE:

 

May 1, 2009

	  	  
	
Optionee:

	  
	  	  
	
Option to Purchase Aggregate Number of Shares:

	  
	
Price Per Share:

	
$.01

	
Date of Grant:

	
May 1, 2009

 

	  	
1.

	
Utec, Inc. (the “Company”), for services already completed and hereby deemed and acknowledged as completed and to give you an increasing interest in the Company as stockholder, hereby gives and grants you the right and option to purchase up to the aggregate number of shares set forth above of the Company’s common stock, par value $.001 per share (the “Common Stock”), at the price per share also set forth above (the “Options”). The per share purchase price is not less than the fair market value per share of Common Stock on the date the grant of the Options was approved by the Board of Directors (the “Date of Grant”).

	  	  	  
	  	
2.

	
The Options are exercisable immediately. The Options shall expire on the date ten (10) years after they become exercisable, the date which has been specified by the Board of Directors, and shall not be exercisable after their expiration date.

	  	  	  
	  	
3.

	
The Options (or any part of installment thereof) must be exercised by giving written notice to the Company’s Chief Executive Officer at its principal office address, or to such transfer agent as the Company’s Chief Executive Officer shall designate. The notice, the form of which is attached hereto as Exhibit A, must specify the date of the notice, the number of shares as to which the Options are being exercised and the expected date of such purchase (which, unless the Company otherwise consents, shall be at least five (5) days and not more than fifteen (15) days after the date you mail the notice). The notice must be accompanied by the tender of payment of the purchase price for the number of shares specified in the notice. Payment must be made (a) in cash, or (b) by certified check, or (c) with previously acquired Common Stock of the Company having a fair market value equal to the purchase price of the shares being purchased, or (d) any combination thereof, or (e) any other method approved by the Board of Directors in its discretion. If the Board of Directors exercise its discretion to permit payment by means other than the methods set forth in clauses (a), (b), (c) or (d), such discretion must be exercised in writing prior to the time you exercise the Options.

	  	  	  
	  	
4.

	
Upon payment of the purchase price of the shares specified in the notice, the Company shall deliver to you certificates for the shares purchased The holder of the Options shall not have the rights of a shareholder with respect to the shares covered by the Options until the date of the stock certificates issued to the holder for such shares.

	  	  	  
	  	
5.

	
You may be required to make an appropriate representation at the time of any exercise of the Options that it is your intention to acquire the shares being purchased for investment and not for resale or distribution. In addition, you may be required to agree in writing not to sell any shares acquired pursuant to the Options or any other shares of the Company that you may now or hereafter acquire except either (a) in compliance with the Securities Act of 1933, as amended, provided that the Company shall be under no obligation to register either the Plan or any securities obtained pursuant to your exercise of your rights, hereunder, with the Securities and Exchange Commission, or (b) with prior written approval of the Company. An appropriate legend restricting the sale of the shares may be placed upon the certificates representing the shares and any resale must be in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder.

  

  

  

	  	
6.

	
This agreement shall be binding upon and shall inure to the benefit of any successors or assigns of the Company, and, to the extent herein provided, shall be binding upon and inure to the benefit of your legal representatives.

	  	  	  
	  	
7.

	
The Option is not, and should not be deemed to be, an employment agreement between you and the Company, and nothing contained herein shall be deemed to confer upon you any right to remain in the employ of the Company or any subsidiary thereof, or in any way to limit the right of the Company or any such subsidiary to terminate your employment.

	  	  	  
	  	
8.

	
If the foregoing is in accordance with your understanding and approved by you, please so confirm by signing and returning the duplicate of this letter enclosed for that purpose.

	  	
Very truly yours,

	  
	  	  	  
	  	
UTEC, Inc

	  
	  	
Fortunato Villamagna, Managing Director

	  

	
Date:

	  	  

 

          I hereby confirm that the foregoing is in accordance with my understanding and is hereby agreed and accepted in its entirety as of the date of the above letter.

	  	  	  
	
By:

	  	  
	  	
Optionee

	  

  

  

  

 

Exhibit A

	  	  	  	  
	
Form of Exercise Notice

	  	  	  
	  	  	  	  
	
UTEC, Inc.

	
Date:

	  	  
	
7230 Indian Creek Lane

	  	  	  
	
Las Vegas, NV 89149

	  	  	  

 

Attention: Chief Executive Officer

 

The undersigned hereby: (1) irrevocably subscribes for and offers to purchase __________________ of common stock of UTEC, Inc pursuant to, and in exercise of, the options granted to the undersigned on _________________; and (2) encloses payment of _______________________ ($_________) for these shares at a purchase price of $_________ per share.

 

The shares should be issued be issued in the name of ___________________________ and should delivered to such holder at:

	  
	  
	  
	  
	
[insert address]

 

	
Signature: 

	  

 

	
Print Name:  

	  

	
Social Security Number:ex10-2.htm

    
      
        

      

    

    Exhibit
10.2

     

    EMPLOYMENT
AGREEMENT

     

    This EMPLOYMENT AGREEMENT (the
“Agreement”) dated as of June 1, 2009 between Dr. Fortunato Villamagna (“CEO”),
and UTEC Inc., a Nevada Corporation (“the Company”) and its wholly and/or
partially-owned subsidiaries and affiliates, now owned or to be acquired in the
future by The Company (The Company, subsidiaries and affiliates being
hereinafter collectively referred to as the “Companies”), (Dr Fortunato
Villamagna and UTEC Corporation being the “Parties” to this
Agreement).

     

    WHEREAS, CEO has previously
been providing management services to manage the business and affairs of UTEC,
Inc., and its subsidiary, UTEC Corporation pursuant to the terms of an agreement
originally signed on July 1, 2008, and prior to that pursuant to the terms of a
management agreement (the “Red Stone Agreement”) dated December 8, 2006 and
further amended on January 11, 2007, with Red Stone Management Services LLC.
(“Red Stone”), a corporation owned by CEO,

     

    AND WHEREAS, as of June 1,
2009 CEO wishes to enter into an agreement with UTEC Inc., and the Company
wishes to enter into an agreement with F. Villamagna as Managing Director and
Chief Executive Officer (“CEO”),

     

    AND WHEREAS the parties agree
that this AGREEMENT dated June 1, 2009 will supersede all previous
agreements,

     

    AND WHEREAS, the Board of
Directors of the Company (the “Board”) have unanimously agreed, and hereby
confirm, the appointment of Dr. Fortunato Villamagna to serve as the Chief
Executive Officer and Managing Director of the Company, with authority to
perform the day-to-day management of the Company and its subsidiaries and
affiliates, now owned or to be acquired in the future.

     

    NOW, THEREFORE, in
consideration of the foregoing, and of the mutual covenants and agreements
herein contained, the Parties agree as follows:

     

    1.         CEO
Duties.

     

              a.          With
support from the Secretary & Chairman or Co-Chairman, CEO shall operate and
manage the Companies according to guidelines provided by the Board from time to
time, and in so doing shall:

     

                           (i)          Interact
with the Companies to establish operating goals, which will focus on
profitability, customer satisfaction, asset management and other related
benefits;

     

                           (ii)         Monitor
operations and progress towards achieving the operating goals;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                           (iii)       Recruit
and supervise the senior management team for the Companies, which appointments
shall be routinely approved by the Board.

     

                           (iv)       Create,
develop and implement marketing plans for achievement of the operating goals at
the Companies;

     

                           (v)        Provide
assistance in the recruitment, supervision and training of the employees of the
Companies.

     

                           (vi)       Supervise
the accounting, human resources, management information services and
administrative services required of the Companies for the management of the
finances of the Companies, including, but not limited to, the establishment of
such lines of credit and other credit facilities as may be appropriate from time
to time for the Companies and the maintenance of books and records for the
Companies in accordance with generally accepted accounting principles and the
Companies’ requirements;

     

                           (vii)    
Perform all such other duties and responsibilities as may be required from time
to time to operate the Companies in a businesslike manner pursuant to good
practices and in compliance with all applicable laws.

     

                            (viii)   Provide
an annual forecast prior to year-end and obtain the approval of the Board for
the forecast, including anticipated capital outlays.

     

                            (ix) 
    Keep the Board advised of progress and
problems.

     

              b.           
CEO shall make, or cause to be made, annual, or more frequent, reports to the
Board concerning activities connected with the operation of Companies whenever
requested by the Companies or the Board. Such reports shall include, without
limitation, financial, market penetration, creditor relations, and customer
satisfaction reports.

     

    2.        Expenses. CEO shall reimbursed
for real, reasonable and customary costs and expenses incurred related to the
operation of the company and conducting business activities as well as all
travel expenses incurred while conducting the business of the Companies. All
requests for reimbursement of expenses shall be submitted in accordance with the
Companies’ expense reporting and reimbursement policies.

     

    3.        Benefits. In addition to a
salary, the Company will offer CEO participation in usual and normal employee
benefits, including social security benefits, health, accident and life
insurance (subject to CEO’s ability to qualify for such plans), annual paid
vacation, workers compensation, and such other benefits as may be established
from time to time by the Company appropriate to its executive employees. These
will be provided on a shared funding arrangement, which will be reviewed
annually. CEO’s entitlement to annual vacation beginning with each new calendar
year will be four weeks per year.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.        Remuneration. CEO shall be entitled
to an annual salary and bonus to a maximum of $300,000.00 per annum. The salary
and bonus shall be calculated as follows:

     

    
      	 	a. 	An annual salary
      payment of $200,000, payable in monthly installments in arrears
      and, 
	 	 	 
	 	b. 	A bonus of 50% of
      the annual pre-tax earnings before depreciation and amortization as set
      forth in the Company’s annual audited financial statements, subject to a
      maximum payment of $100,000 in any one year. 
	 	 	 
	 	c. 	A grant of stock
      options under the Employee & Director Stock Ownership Plan as approved
      from time to time by the Board, equal to at least twice the stock options
      granted to the next most senior employee of the company, generally
      expected to be the President of UTEC Corporation, and, 
	 	 	 
	 	d. 	A grant of stock
      options under the Employee & Director Stock Ownership Plan for CEO’s
      service as a Director of the Company, on the same basis as stock options
      are granted to each other Director. 

    

     

              All
benefits issued under sections 3b through 3d are irrevocable,

     

              One-half
of the payments under section 3(b) may, under mutual agreement between the Board
and the CEO, be made in options for, or in shares of, the Company, subject to an
additional share allowance equal to 10% of the amount which would otherwise be
payable in cash.

     

              The
Chairman or Co-Chairman will review CEO’s compensation annually in conjunction
with CEO’s annual performance review, and any recommendations for changes will
be made to the Board’s Compensation Committee for final approval.

     

    5.       Term. This Agreement shall
commence as of the date hereof, and shall continue for a period of three years
(“Initial Term”). Thereafter, the Agreement shall be automatically renewed for
successive three-year periods.

     

    6.       Termination. CEO’s employment may be
terminated by the Company in the event of;

     

    
      	 	a. 	CEO’s death,
      or,
	 	 	 
	 	b. 	CEO’s disability,
      such that CEO is unable to perform your duties on a full time basis for a
      period of six consecutive months as a result of incapacity or disability
      due to physical or mental illness, and you have failed to return to full
      time work within 30 days following written notice to do so,
      or, 
	 	 	 
	 	c. 	Cause, which for
      purposes of this Agreement shall
mean: 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	(i)	gross negligence,
      recklessness or willful misconduct in the performance of your duties
      hereunder; 
	 	(ii) 	a charge of fraud or
      embezzlement, or conviction for any crime involving violence or moral
      turpitude; 
	 	(iii) 	misuse, for personal
      gain or otherwise, of the assets of the company; 
	 	(iv)	failure to devote
      the majority of CEO’s time and attention to the affairs of the company,
      pursuant to the terms of this
Agreement 

    

     

    7.          Payment on
Termination. If this Agreement is
terminated by the Company “for Cause” prior to the end of the Initial Term, CEO
shall be entitled to the salary and bonus to which he would otherwise have
earned for the fiscal year in which the termination occurred, plus an amount
equal to the salary specified in section 3(a), pro­rated for the remaining
term of the Agreement. If this Agreement is not terminated for “Cause”, or if it
is terminated Upon Corporate Capital transactions, “CEO” shall be entitled to
receive compensation equal to the greater of (i) the period as enforced in
section ten (10) of this agreement or (ii) two (2) years, of remuneration
(salary plus bonus plus options) that would be payable hereunder in this
Agreement. A “Corporate Capital Change” shall be defined as the event that the
Company, its stockholders, or both, enter into a written agreement to dispose of
all or substantially all of the assets or stock of the Company by means of a
sale, merger, consolidation, reorganization, liquidation or similar transaction
(other than a reorganization, merger or consolidation effected solely to change
the Company’s name or state of incorporation), unless “CEO” accepts the position
of “CEO” for the new entity. In the event the Company, its stockholders, or both
terminate the “Corporate Capital Transaction” prior to successful completion,
the “CEO’s” rights hereunder, including the Executive’s rights to compensation,
shall be determined as if the Company and its stockholders had not entered into
the agreement to undertake the transaction.

     

    8.          Exculpation. CEO shall not be liable
to the Companies or any officer, director, employee, or shareholder of Companies
for honest mistakes of judgment, or for action or inaction, taken reasonably and
in good faith for a purpose that was reasonably believed to be in, or not
opposed to, the best interests of Companies, or for losses due to such mistakes,
action, or inaction. CEO may consult with counsel and accountants in respect of
any contemplated action or inaction, and be fully protected and justified in any
action or inaction that is taken in accordance with the advice or opinion of
such counsel or accountants.

     

    9.          Proprietary and
Confidential Information. As an executive manager
for the Company, CEO will be privy to proprietary information about the Company,
its Shareholders, and all aspects of its operations, plans and strategies. All
proprietary information shall be confidential and CEO agrees not to disclose it
to others, nor use it in any way for CEO’s own benefit.

     

    10.          Agreement Not to
Compete. The CEO does not have a
non-compete agreement. The company recognizes the CEO’s long record of novel
technology developments and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    commercialization,
and recognizes that the CEO may from time to time develop systems outside the
technology area currently being developed by the Company in conjunction with
other groups either owned by CEO or in a consulting capacity. All such
developments will be the property of CEO.

     

    11.          General

    
      	 
      	 
      	 
      
	 
      	
               a.

            	
              Indemnification.
      The Company and it’s respective affiliates, representatives, shareholders,
      parent(s) or subsidiary companies and respective directors, officers,
      employees, agents, successors and assigns shall indemnify CEO from and
      against any and all claims, orders, judgments, penalties, fines, remedies,
      losses, liabilities, costs and expenses (including, but not limited to,
      those arising directly or indirectly out of or related in any manner to
      the death or injury of any person, injury/damage to property, court costs,
      litigation expenses or attorneys fees) sustained, asserted or claimed by
      any party as a result of, arising directly or indirectly from or related
      in any manner to the management of the Companies or the performance of
      CEO’s obligations under this Agreement.

            
	 
      	 
      	 
      
	 
      	
               b.

            	
              Governing
      Law. THIS AGREEMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO, AND
      THE ENTIRE RELATIONSHIP BETWEEN THE PARTIES RELATING HERETO, SHALL BE
      GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE
      LAWS (BUT NOT THE RULES GOVERNING CONFLICTS OF LAWS) OF THE STATE OF
      NEVADA. THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE FULLY PERFORMABLE
      IN CLARK COUNTY, NEVADA.

            

    

     

    This
Agreement is entered into and is effective as of the date first writen
above.

    
      	 
      	 
      	 
      	 
      
	 
      	
              UTEC
      Inc.

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Ken Liebscher

            	 
      
	 
      	 
      	
              Name:
      Ken Liebscher

            	 
      
	 
      	 
      	
              Title:  
      Secretary & Co-Chairman

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	 
      	 
      
	 
      	 
      	
              Name:
      Fortunato Villamagna

            	 
      
	 
      	 
      	
              Title:  
      CEO

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