Document:

EX 10.7

    EXHIBIT
      10.7

    

    [DATE]

    

    [NAME]

    [ADDRESS]

     

    Re: Employment
      Terms

     

    Dear
      [NAME]:

     

    Sputnik,
      Inc. (“Sputnik”) is pleased to offer you the position of [POSITION] on the
      following terms.

     

    You
      will
      be responsible for: [RESPONSIBILITIES]. You will report to [MANAGER
      NAME].

     

    Your
      compensation will be [COMPENSATION] per month, less payroll deductions and
      all
      required withholdings. You will be paid semi-monthly in accordance with
      Sputnik’s standard payroll procedures, and you may be eligible for standard
      Sputnik benefits as they become available. 

     

    Sputnik
      may modify your position, duties, work location, schedule, compensation and
      benefits from time to time in its discretion.

     

    As
      a
      Sputnik employee, you will be expected to abide by Sputnik’s rules and policies,
      and sign and comply with the attached Confidentiality
      Agreement and Employee Inventions and Proprietary Rights Assignment
      Agreement.
      

     

    In
      your
      work for Sputnik, you will be expected not to use or disclose any confidential
      information, including trade secrets, of any former employer or other person
      to
      whom you have an obligation of confidentiality. Rather, you will be expected
      to
      use only that information which is generally known and used by persons with
      training and experience comparable to your own, which is common knowledge in
      the
      industry or otherwise legally in the public domain, or which is otherwise
      provided or developed by Sputnik. During our discussions about your proposed
      job
      duties, you assured us that you would be able to perform those duties within
      the
      guidelines just described.

     

    You
      agree
      that you will not bring onto Sputnik premises any unpublished documents or
      property belonging to any former employer or other person to whom you have
      an
      obligation of confidentiality.

     

    You
      have
      represented to Sputnik that you have the full right and power to enter into
      employment with Sputnik without the consent of any third party, and that you
      have no contract or obligation that is inconsistent or incompatible with your
      obligations to Sputnik as an employee.

     

    You
      may
      terminate your employment with Sputnik at any time and for any reason whatsoever
      simply by notifying Sputnik. Likewise, your employment
      with the Sputnik is “at will”; it is for no specified term, and may be
      terminated by you or the Sputnik at any time, with or without cause or advance
      notice.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    This
      letter, together with your Confidentiality Agreement and Employee Inventions
      and
      Proprietary Rights Assignment Agreement, forms the complete and exclusive
      statement of your employment agreement with Sputnik. It supersedes any other
      agreements or promises made to you by anyone, whether oral or written. Changes
      in your employment terms, other than those changes expressly reserved to
      Sputnik’s discretion in this letter, require a written modification signed by
      Sputnik’s President. As required by law, this offer is subject to satisfactory
      proof of your right to work in the United States.

     

    Please
      sign and date this letter, and return it to me by [RETURN DATE] if you wish
      to
      accept employment at Sputnik under the terms described above. If you accept
      our
      offer, we would like you to start on [START DATE].

     

    We
      look
      forward to your favorable reply and to a productive and enjoyable work
      relationship.

     

    Sincerely,

    

     

     

      
        

      

    

    David
      LaDuke, CEO, Sputnik, Inc.

    

    Accepted
      and Agreed:

    

    

     

      
        

      

    

    [NAME]

    

    

     

      
        

      

    

    Date

    

    

    Attachment:
      Confidentiality Agreement and Employee Inventions and Proprietary Rights
      Assignment Agreement

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    CONFIDENTIALITY
      AGREEMENT

    (DISCLOSURES
      BY
      SPUTNIK,
      INC.)

     

    This
      Agreement is made and entered into, as of _________________, 200_ (“Effective
      Date”), by and between SPUTNIK, INC. (“Company”), having a principal place of
      business at 650 Townsend Street, Suite 320, San Francisco, CA 94103 and
      __________________________________a(n)  o individual,  o
      partnership, o limited liability
      partnership, o corporation, o limited
      liability company (check the
      appropriate box) of the state of ____________, having a principal place of
      business at ___________________________________ (“Recipient”).

     

    Definition
      of Confidential Information.
      “Confidential Information” as used in this Agreement shall mean any and all
      technical and non-technical information including patent, copyright, trade
      secret, and proprietary information, techniques, sketches, drawings, models,
      inventions, know-how, processes, apparatus, equipment, algorithms, software
      programs, software source documents, and formulae related to the current, future
      and proposed products and services of Company. “Confidential Information”
includes, without limitation, Company’s respective information concerning
      research, experimental work, development, design details and specifications,
      engineering, financial information, procurement requirements, purchasing
      manufacturing, customer lists, business forecasts, sales and merchandising
      and
      marketing plans and information. “Confidential Information” also includes
      proprietary or confidential information of any third party who may disclose
      such
      information to Company or Recipient in the course of Company’s
      business.

     

    Nondisclosure
      and Nonuse Obligations.
      Recipient agrees that Recipient will not use, disseminate, or in any way
      disclose any Confidential Information to any person, firm or business, except
      to
      the extent necessary for internal evaluations in connection with negotiations,
      discussions, and consultations with personnel or authorized representatives
      of
      Company and for any other purpose Company may hereafter authorize in writing.
      Furthermore, the existence of any business negotiations, discussions,
      consultations or agreements in progress between the parties shall not be
      released to any form of public media without the prior written approval of
      Company. Recipient agrees that Recipient shall treat all Confidential
      Information of Company with the same degree of care as Recipient accords to
      Recipient’s own Confidential Information, but in no case less than reasonable
      care. If Recipient is not an individual, Recipient agrees that Recipient shall
      disclose Confidential Information of Company only to those of Recipient’s
      employees who need to know such information and certifies that such employees
      have previously agreed, either as a condition of employment or in order to
      obtain the Confidential Information, to be bound by terms and conditions
      substantially similar to those terms and conditions applicable to Recipient
      under this Agreement. Recipient will immediately give notice to Company of
      any
      unauthorized use or disclosure of the Confidential Information. Recipient agrees
      to assist Company in remedying any such unauthorized use or disclosure of the
      Confidential Information.

     

    Exclusions
      from Nondisclosure and Nonuse Obligations.
      Recipient’s obligations under Paragraph 2 (“Nondisclosure and Nonuse
      Obligations”), with respect to any portion of Confidential Information, shall
      not apply to any such portion that Recipient can document either (a) was in
      the public domain at or subsequent to the time such portion was communicated
      to
      Recipient by Company through no fault of Recipient; (b) was rightfully in
      Recipient’s possession free of any obligation of confidence at or subsequent to
      the time such portion was communicated to Recipient by Company; or (c) was
      developed by employees or agents of Recipient independently of and without
      reference to any information communicated to Recipient by Company. A disclosure
      of any portion of Confidential Information, either (a) in response to a
      valid order by a court or other governmental body, or (b) otherwise
      required by law, shall not be considered to be a breach of this Agreement or
      a
      waiver of confidentiality for other purposes; provided, however, that Recipient
      shall provide prompt prior written notice thereof to Company to enable Company
      to seek a protective order or otherwise prevent such disclosure.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    Ownership
      and Return of Confidential Information and Other Materials.
      All
      Confidential Information, and any Derivatives thereof whether created by Company
      or Recipient, remain the property of Company and no license or other rights
      to
      Confidential Information or Derivatives is granted or implied hereby. For
      purposes of this Agreement, “Derivatives” shall mean: (a) for copyrightable
      or copyrighted material, any translation, abridgment, revision or other form
      in
      which an existing work may be recast, transformed or adapted; (b) for
      patentable or patented material, any improvement thereon; and (c) for
      material which is protected by trade secret, any new material derived from
      such
      existing trade secret material, including new material which may be protected
      under copyright, patent and/or trade secret laws. Recipient hereby does and
      will
      assign to Company all of Recipient’s rights, title in interest and interest in
      and to the Derivatives. All materials (including, without limitation, documents,
      drawings, models, apparatus, sketches, designs, lists, and all other tangible
      media of expression) furnished to Recipient by Company shall remain the property
      of Company. At Company’s request and no later than five (5) days after such
      request, Recipient shall destroy or deliver to Company, at Company’s option,
      (a) all materials furnished to Recipient by Company, (b) all tangible
      media of expression in Recipient’s possession or control which incorporate or in
      which are fixed any Confidential Information, and (c) written certification
      of Recipient’s compliance with Recipient’s obligations under this
      sentence.

     

    No
      Warranty.
      All
      Confidential Information is provided “AS IS” and without any warranty, express,
      implied or otherwise, regarding such Confidential Information’s accuracy or
      performance.

     

    No
      Export.
      Recipient will not export, directly or indirectly, any technical data acquired
      from Company pursuant to this Agreement or any product utilizing any such data
      to any country for which the U.S. Government or any agency thereof at the time
      of export requires an export license or other governmental approval without
      first obtaining such license or approval.

     

    Term.
      This
      Agreement shall govern all communications from Company to Recipient that are
      made during the period from the Effective Date to the date on which either
      party
      receives from the other party written notice that subsequent communications
      shall not be so governed, provided, however, that Recipient’s obligations under
      Paragraph 2 (“Nondisclosure and Nonuse Obligations”) with respect to
      Confidential Information of Company which Recipient has previously received
      shall continue in perpetuity unless terminated pursuant to Paragraph 3
      (“Exclusions from Nondisclosure and Nonuse Obligations”).

     

    No
      Assignment.
      Recipient shall not assign or transfer any rights or obligations under this
      Agreement without the prior written consent of Company.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    Notices.
      Any
      notice required or permitted by this Agreement shall be in writing and shall
      be
      delivered as follows, with notice deemed given as indicated: (a) by
      personal delivery, when delivered personally; (b) by overnight courier,
      upon written verification of receipt; (c) by telecopy or facsimile
      transmission, upon acknowledgment of receipt of electronic transmission; or
      (d) by certified or registered mail, return receipt requested, upon
      verification of receipt. Notice shall be sent to the addresses set forth above
      or to such other address as either party may specify in writing.

     

    Governing
      Law and Forum; Legal Fees.
      This
      Agreement shall be governed in all respects by the laws of the United States
      of
      America and by the laws of the State of California, as such laws are applied
      to
      agreements entered into and to be performed entirely within California between
      California residents. Each of the parties irrevocably consents to the exclusive
      personal jurisdiction of the federal and state courts located in California,
      as
      applicable, for any matter arising out of or relating to this Agreement, except
      that in actions seeking to enforce any order or any judgment of such federal
      or
      state courts located in California, such personal jurisdiction shall be
      nonexclusive. If any dispute arises between the parties with respect to the
      matters covered by this Agreement which leads to a proceeding to resolve such
      dispute, the prevailing party in such proceeding shall be entitled to receive
      such prevailing party’s reasonable attorneys’ fees, expert witness fees and
      out-of-pocket costs incurred in connection with such proceeding, in addition
      to
      any other relief to which such prevailing party may be entitled.

     

    Severability.
      If any
      provision of this Agreement is held by a court of law to be illegal, invalid
      or
      unenforceable, (i) that provision shall be deemed amended to achieve as
      nearly as possible the same economic effect as the original provision, and
      (ii) the legality, validity and enforceability of the remaining provisions
      of this Agreement shall not be affected or impaired thereby.

     

    Waiver;
      Amendment; Modification.
      No term
      or provision hereof will be considered waived by Company, and no breach excused
      by Company, unless such waiver or consent is in writing signed by Company.
      The
      waiver by Company of, or consent by Company to, a breach, of any provision
      of
      this Agreement by Recipient shall not operate or be construed as a waiver of,
      consent to, or excuse of any other or subsequent breach by Recipient. This
      Agreement may be amended or modified only by mutual agreement of authorized
      representatives of the parties in writing.

     

    Injunctive
      Relief.
      A
      breach of any of the promises or agreements contained herein will result in
      irreparable and continuing damage to Company for which there will be no adequate
      remedy at law, and Company shall be entitled to injunctive relief and/or a
      decree for specific performance, and such other relief as may be proper
      (including monetary damages if appropriate).

     

    Entire
      Agreement.
      This
      Agreement constitutes the entire agreement with respect to the Confidential
      Information disclosed hereunder and supersedes all prior or contemporaneous
      oral
      or written agreements concerning such Confidential Information.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

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

     

    
      	
              “Company”

               

              SPUTNIK,
                INC.

               

               

              By:__________________________________________

               

              Name:________________________________________

               

              Title:_________________________________________

            	
              “Recipient”

               

              [RECIPIENT
                NAME]

               

               

              By:_________________________________________

               

              Name:________________________________________

               

              Title:_________________________________________

            

    

     

    
 

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    EMPLOYEE
      INNOVATIONS AND PROPRIETARY RIGHTS

    ASSIGNMENT
      AGREEMENT

    

    

    This
      Agreement is intended to formalize in writing certain understandings and
      procedures which have been in effect since the time I was initially employed
      by
      SPUTNIK, INC. (“Company”). In return for my new or continued employment by
      Company and other good and valuable consideration, the receipt and sufficiency
      of which I hereby acknowledge, I acknowledge and agree that:

     

    Duties;
      At-Will Employment; No Conflict.
      I will
      perform for Company such duties as may be designated by Company from time to
      time. I agree that my employment with Company is for no specified term, and
      may
      be terminated by Company at any time, with or without cause, and with or without
      notice. Similarly, I may terminate my employment with Company at any time,
      with
      or without cause, and with or without notice. During my period of employment
      by
      Company, I will devote my best efforts to the interests of Company and will
      not
      engage in other employment or in any activities determined by Company to be
      detrimental to the best interests of Company without the prior written consent
      of Company.

     

    Prior
      Work.
      All
      previous work done by me for Company relating in any way to the conception,
      reduction to practice, creation, derivation, design, development, manufacture,
      sale or support of products or services for Company is the property of Company,
      and I hereby assign to Company all of my right, title and interest in and to
      such previous work.

     

    Proprietary
      Information.
      My
      employment creates a relationship of confidence and trust between Company and
      me
      with respect to any information:

     

    Applicable
      to the business of Company; or

     

    Applicable
      to the business of any client or customer of Company, which may be made known
      to
      me by Company or by any client or customer of Company, or learned by me in
      such
      context during the period of my employment.

     

    All
      such
      information has commercial value in the business in which Company is engaged
      and
      is hereinafter called “Proprietary Information.” By way of illustration, but not
      limitation, Proprietary Information includes any and all technical and
      non-technical information including patent, copyright, trade secret, and
      proprietary information, techniques, sketches, drawings, models, inventions,
      know-how, processes, apparatus, equipment, algorithms, software programs,
      software source documents, and formulae related to the current, future and
      proposed products and services of Company, and includes, without limitation,
      respective information concerning research, experimental work, development,
      design details and specifications, engineering, financial information,
      procurement requirements, purchasing manufacturing, customer lists, business
      forecasts, sales and merchandising and marketing plans and information.
“Proprietary Information” also includes proprietary or confidential information
      of any third party who may disclose such information to Company or to me in
      the
      course of Company’s business.

     

    Ownership
      and Nondisclosure of Proprietary Information.
      All
      Proprietary Information is the sole property of Company, Company’s assigns, and
      Company’s customers, and Company, Company’s assigns and Company’s customers
      shall be the sole and exclusive owner of all patents, copyrights, mask works,
      trade secrets and other rights in the Proprietary Information. I hereby do
      and
      will assign to Company all rights, title and interest I may have or acquire
      in
      the Proprietary Information. At all times, both during my employment by Company
      and after termination of such employment, I will keep in confidence and trust
      all Proprietary Information, and I will not use or disclose any Proprietary
      Information or anything directly relating to Proprietary Information without
      the
      written consent of Company, except as may be necessary in the ordinary course
      of
      performing my duties as an employee of Company.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    Ownership
      and Return of Materials.
      All
      materials (including, without limitation, documents, drawings, models,
      apparatus, sketches, designs, lists, and all other tangible media of expression)
      furnished to me by Company shall remain the property of Company. Upon
      termination of my employment, or at any time on the request of Company before
      termination, I will promptly (but no later than five (5) days after the
      earlier of my employment’s termination or Company’s request) destroy or deliver
      to Company, at Company’s option, (a) all materials furnished to me by
      Company, (b) all tangible media of expression which are in my possession
      and which incorporate any Proprietary Information or otherwise relate to
      Company’s business, and (c) written certification of my compliance with my
      obligations under this sentence.

     

    Innovations.
      As used
      in this Agreement, the term “Innovations” means all processes, machines,
      manufactures, compositions of matter, improvements, inventions (whether or
      not
      protectable under patent laws), works of authorship, information fixed in any
      tangible medium of expression (whether or not protectable under copyright laws),
      moral rights, mask works, trademarks, trade names, trade dress, trade secrets,
      know-how, ideas (whether or not protectable under trade secret laws), and all
      other subject matter protectable under patent, copyright, moral right, mask
      work, trademark, trade secret or other laws, and includes without limitation
      all
      new or useful art, combinations, discoveries, formulae, manufacturing
      techniques, technical developments, discoveries, artwork, software, and designs.
      “Innovations” includes “Inventions,” which is defined to mean any inventions
      protected under patent laws.

     

    Disclosure
      of Prior Innovations.
      I have
      identified on Exhibit A (“Prior Innovations”) attached hereto all
      Innovations, applicable to the business of Company or relating in any way to
      Company’s business or demonstrably anticipated research and development or
      business, which were conceived, reduced to practice, created, derived,
      developed, or made by me prior to my employment with Company (collectively,
      the
“Prior Innovations”), and I represent that such list is complete. I represent
      that I have no rights in any such Innovations other than those Prior Innovations
      specified in Exhibit A (“Prior Innovations”). If there is no such list on
      Exhibit A (“Prior Innovations”), I represent that I have neither conceived,
      reduced to practice, created, derived, developed nor made any such Prior
      Innovations at the time of signing this Agreement.

     

    Assignment
      of Innovations; License of Prior Innovations.
      I
      hereby agree promptly to disclose and describe to Company, and I hereby do
      and
      will assign to Company or Company’s designee my entire right, title, and
      interest in and to, (a) each of the Innovations (including Inventions), and
      any associated intellectual property rights, which I may solely or jointly
      conceive, reduce to practice, create, derive, develop or make during the period
      of my employment with Company, which either (i) relate, at the time of
      conception, reduction to practice, creation, derivation, development, or making
      of such Innovation, to Company’s business or actual or demonstrably anticipated
      research or development, or (ii) were developed on any amount of Company’s
      time or with the use of any of Company’s equipment, supplies, facilities or
      trade secret information, or (iii) resulted from any work I performed for
      Company, and (b) each of the Innovations which is not an Invention (as
      demonstrated by me by evidence meeting the clear and convincing standard of
      proof), and any associated intellectual property rights, which I may solely
      or
      jointly conceive, develop, reduce to practice, create, derive, develop, or
      make
      during the period of my employment with Company, which are applicable to the
      business of Company (collectively, the Innovations identified in clauses
      (a) and (b) are hereinafter the “Company Innovations”). To the extent any
      of the rights, title and interest in and to Company Innovations cannot be
      assigned by me to Company, I hereby grant to Company an exclusive, royalty-free,
      transferable, irrevocable, worldwide license (with rights to sublicense through
      multiple tiers of sublicensees) to practice such non-assignable rights, title
      and interest. To the extent any of the rights, title and interest in and to
      Company Innovations can be neither assigned nor licensed by me to Company,
      I
      hereby irrevocably waive and agree never to assert such non-assignable and
      non-licensable rights, title and interest against Company or any of Company’s
      successors in interest to such non-assignable and non-licensable rights. I
      hereby grant to Company or Company’s designees a royalty free, irrevocable,
      worldwide license (with rights to sublicense through multiple tiers of
      sublicensees) to practice all applicable patent, copyright, moral right, mask
      work, trade secret and other intellectual property rights relating to any Prior
      Innovations which I incorporate, or permit to be incorporated, in any Company
      Innovations. Notwithstanding the foregoing, I agree that I will not incorporate,
      or permit to be incorporated, any Prior Innovations in any Company Innovations
      without Company’s prior written consent.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    Future
      Innovations.
      I
      recognize that Innovations or Proprietary Information relating to my activities
      while working for Company and conceived, reduced to practice, created, derived,
      developed, or made by me, alone or with others, within three (3) months after
      termination of my employment may have been conceived, reduced to practice,
      created, derived, developed, or made, as applicable, in significant part while
      employed by Company. Accordingly, I agree that such Innovations and Proprietary
      Information shall be presumed to have been conceived, reduced to practice,
      created, derived, developed, or made, as applicable, during my employment with
      Company and are to be promptly assigned to Company unless and until I have
      established the contrary by written evidence satisfying the clear and convincing
      standard of proof.

     

    Cooperation
      in Perfecting Rights to Proprietary Information and Innovations.

     

    I
      agree
      to perform, during and after my employment, all acts deemed necessary or
      desirable by Company to permit and assist Company, at Company’s expense, in
      obtaining and enforcing the full benefits, enjoyment, rights and title
      throughout the world in the Proprietary Information and Innovations assigned
      or
      licensed to, or whose rights are irrevocably waived and shall not be asserted
      against, Company under this Agreement. Such acts may include, but are not
      limited to, execution of documents and assistance or cooperation (i) in the
      filing, prosecution, registration, and memorialization of assignment of any
      applicable patents, copyrights, mask work, or other applications, (ii) in
      the enforcement of any applicable patents, copyrights, mask work, moral rights,
      trade secrets, or other proprietary rights, and (iii) in other legal
      proceedings related to the Proprietary Information or Innovations.

     

    In
      the
      event that Company is unable for any reason to secure my signature to any
      document required to file, prosecute, register, or memorialize the assignment
      of
      any patent, copyright, mask work or other applications or to enforce any patent,
      copyright, mask work, moral right, trade secret or other proprietary right
      under
      any Proprietary Information (including improvements thereof) or any Innovations
      (including derivative works, improvements, renewals, extensions, continuations,
      divisionals, continuations in part, continuing patent applications, reissues,
      and reexaminations thereof), I hereby irrevocably designate and appoint Company
      and Company’s duly authorized officers and agents as my agents and
      attorneys-in-fact to act for and on my behalf and instead of me, (i) to
      execute, file, prosecute, register and memorialize the assignment of any such
      application, (ii) to execute and file any documentation required for such
      enforcement, and (iii) to do all other lawfully permitted acts to further
      the filing, prosecution, registration, memorialization of assignment, issuance,
      and enforcement of patents, copyrights, mask works, moral rights, trade secrets
      or other rights under the Proprietary Information, or Innovations, all with
      the
      same legal force and effect as if executed by me.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    No
      Violation of Rights of Third Parties.
      My
      performance of all the terms of this Agreement and as an employee of Company
      does not and will not breach any agreement to keep in confidence proprietary
      information, knowledge or data acquired by me prior to my employment with
      Company, and I will not disclose to Company, or induce Company to use, any
      confidential or proprietary information or material belonging to any previous
      employer or others. I am not a party to any other agreement which will interfere
      with my full compliance with this Agreement. I agree not to enter into any
      agreement, whether written or oral, in conflict with the provisions of this
      Agreement.

     

    Survival.
      This
      Agreement (a) shall survive my employment by Company; (b) does not in
      any way restrict my right or the right of Company to terminate my employment
      at
      any time, for any reason or for no reason; (c) inures to the benefit of
      successors and assigns of Company; and (d) is binding upon my heirs and
      legal representatives.

     

    Nonassignable
      Inventions.
      This
      Agreement does not apply to an Invention which qualifies fully as a
      nonassignable invention under the provisions of Section 2870 of the
      California Labor Code. I acknowledge that a condition for an Invention to
      qualify fully as a non-assignable invention under the provisions of Section
      2870
      of the California Labor Code is that the invention must be protected under
      patent laws. I have reviewed the notification in Exhibit B (“Limited
      Exclusion Notification”) and agree that my signature acknowledges receipt of the
      notification. However, I agree to disclose promptly in writing to Company all
      Innovations (including Inventions) conceived, reduced to practice, created,
      derived, developed, or made by me during the term of my employment and for
      three
      (3) months thereafter, whether or not I believe such Innovations are subject
      to
      this Agreement, to permit a determination by Company as to whether or not the
      Innovations should be the property of Company. Any such information will be
      received in confidence by Company.

     

    No
      Solicitation.
      During
      the term of my employment with Company and for a period of two (2) years
      thereafter, I will not solicit, encourage, or cause others to solicit or
      encourage any employees of Company to terminate their employment with
      Company.

     

    Injunctive
      Relief.
      A
      breach of any of the promises or agreements contained herein will result in
      irreparable and continuing damage to Company for which there will be no adequate
      remedy at law, and Company shall be entitled to injunctive relief and/or a
      decree for specific performance, and such other relief as may be proper
      (including monetary damages if appropriate).

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    Notices.
      Any
      notice required or permitted by this Agreement shall be in writing and shall
      be
      delivered as follows, with notice deemed given as indicated: (a) by
      personal delivery, when delivered personally; (b) by overnight courier,
      upon written verification of receipt; (c) by telecopy or facsimile
      transmission, upon acknowledgment of receipt of electronic transmission; or
      (d) by certified or registered mail, return receipt requested, upon
      verification of receipt. Notices to me shall be sent to any address in Company’s
      records or such other address as I may specify in writing. Notices to Company
      shall be sent to Company’s Human Resources Department or to such other address
      as Company may specify in writing.

     

    Governing
      Law.
      This
      Agreement shall be governed in all respects by the laws of the United States
      of
      America and by the laws of the State of California, as such laws are applied
      to
      agreements entered into and to be performed entirely within California between
      California residents. Each of the parties irrevocably consents to the exclusive
      personal jurisdiction of the federal and state courts located in California,
      as
      applicable, for any matter arising out of or relating to this Agreement, except
      that in actions seeking to enforce any order or any judgment of such federal
      or
      state courts located in California, such personal jurisdiction shall be
      nonexclusive.

     

    Severability.
      If any
      provision of this Agreement is held by a court of law to be illegal, invalid
      or
      unenforceable, (i) that provision shall be deemed amended to achieve as
      nearly as possible the same economic effect as the original provision, and
      (ii) the legality, validity and enforceability of the remaining provisions
      of this Agreement shall not be affected or impaired thereby.

     

    Waiver;
      Amendment; Modification.
      The
      waiver by Company of a term or provision of this Agreement, or of a breach
      of
      any provision of this Agreement by me, shall not be effective unless such waiver
      is in writing signed by Company. No waiver by Company of, or consent by Company
      to, a breach by me, will constitute a waiver of, consent to or excuse of any
      other or subsequent breach by me. This Agreement may be amended or modified
      only
      with the written consent of both me and Company. No oral waiver, amendment
      or
      modification shall be effective under any circumstances whatsoever.

     

    Entire
      Agreement.
      This
      Agreement represents my entire understanding with Company with respect to the
      subject matter of this Agreement and supersedes all previous understandings,
      written or oral.

     

    I
      certify
      and acknowledge that I have carefully read all of the provisions of this
      Agreement and that I understand and will fully and faithfully comply with such
      provisions.

     

    
      	
              “COMPANY”

               

              SPUTNIK,
                INC.

               

               

              By:__________________________________________

               

              Title:_________________________________________

               

              Dated:________________________________________

            	
              EMPLOYEE:

               

               

               

               

              By:_________________________________________

               

              Printed
                Name:__________________________________

               

              Dated:________________________________________

            

    

     

    
 

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    Exhibit A

    

    PRIOR
      INNOVATIONS

     

    Exhibit B

    

    LIMITED
      EXCLUSION NOTIFICATION

    

    

    THIS
      IS
      TO NOTIFY you in accordance with Section 2872 of the California Labor Code
      that the foregoing Agreement between you and Company does not require you to
      assign or offer to assign to Company any invention that you developed entirely
      on your own time without using Company’s equipment, supplies, facilities or
      trade secret information except for those inventions that either:

     

    (1) Relate
      at
      the time of conception or reduction to practice of the invention to Company’s
      business, or actual or demonstrably anticipated research or development of
      Company; or

     

    (2) Result
      from any work performed by you for Company.

     

    To
      the
      extent a provision in the foregoing Agreement purports to require you to assign
      an invention otherwise excluded from the preceding paragraph, the provision
      is
      against the public policy of this state and is unenforceable.

     

    This
      limited exclusion does not apply to any patent or invention covered by a
      contract between Company and the United States or any of its agencies requiring
      full title to such patent or invention to be in the United States.

     

    I
      ACKNOWLEDGE RECEIPT of a copy of this notification.

     

    

    
      	 	
              By:________________________________________

               

              ___________________________________________

              (Printed
                Name of Employee)

               

              Date:________________________________________Advance Agreement

      Party A: China Star Investment Management Co. Ltd.
      Party B: Kiwa Bio-Tech Products (Shandong) Co. Ltd.

      The Advance Agreement is signed on December 31, 2005 by both parties, to
clarify the following advance transactions:

      1. During October to December 2005, Party A advanced an aggregate sum of
      RMB109,740.60 to Party B through its bank accounts in China. The details
      of date and amounts are as followed:

                Date                                RMB
             ------------------------------------------------------------
                          25-Oct-05                             9,770.30
                          25-Nov-05                            33,970.30
                          15-Dec-05                            66,000.00
                                    -------------------------------------
               Total                                          109,740.60
                                    -------------------------------------

      2. Both parties agreed the abovementioned advances (RMB749,800 (i.e.
      $13,598.25) in total) bear interest at 12% per annum starting from date of
      draw down. Party B agreed to settle the advances within 180 days since the
      date of draw down. It is agreed that Party B has the option to repay or
      settle the advances on or before the expiry.

      3. Both parties agreed that Party B will issue to Party A warrants that
      entitle Party A to purchase up to 67,991 shares of common stock based on
      the conversion price specified in Clause 4. Party A shall have the right
      to exercise the warrants within next 24 months.

      4. Conversion: At the option and instruction of Party A, Party A shall at
      any time make an application to exercise any warrants for the issuance of
      shares of Party B's holding company, Kiwa Bio-Tech Products Group
      Corporation ("KWBT"). Party A shall have the right to exercise the
      warrants based on a conversion price equal to the closing quote of the
      shares of KWBT, listed on the Over-the-counter Bulletin Board (the
      "Shares") on the date of drawing down the fund. A list of the closing
      quotes of KWBT during the dates of the draw down is attached in the
      Appendix A. The mechanics of the conversion are as follows:

<PAGE>

      (1)   Shares issued upon Exercise will be registered within six months or
            as soon as practicable on behalf of such Person or Persons as Party
            A shall direct at Party B or KWBT's expense. Party A shall have
            unlimited piggyback right.

      (2)   Party B or KWBT shall procure that all taxes and capital, stamp,
            issue and registration duties (if any) arising in connection with
            the Exercise.

      (3)   Party B or KWBT shall procure that on or as soon as possible after
            conversion evidence satisfactory to Party A shall be delivered to
            Party A in respect of its legal title to the Shares and that
            definitive certificates are delivered to Party A in respect of the
            Shares as soon as practicable.

      (4)   Fractions of shares will not be made available and any cash
            adjustment to be made shall be paid to Party A.

      (5)   Party B or KWBT shall promptly notify Party A in written form of any
            potential changes in majority holding or events that would have a
            substantial impact on KWBT's asset structure or business control
            (which are collectively called "changes in majority holding"). This
            notification and other proper assistance shall be promptly delivered
            to Party A so as to allow it to make decisions as to whether to
            exercise its right of converting the loan according to clause 4. In
            case of failure to promptly deliver the notification to Party A,
            Party A reserves the right to request a proper adjustment on the
            conversion price so as to keep consistent with the result of
            conversion prior to the changes in majority holding.

Party A:          China Star Investment Management Co. Ltd.

Signature:                 Zulong Liang
                   ---------------------------
                             Director

Party B:          Kiwa Bio-Tech Products (Shandong) Co. Ltd.

Signature:                 Lianjun Luo
                   ---------------------------
                           Director

Date:    December 31, 2005

<PAGE>

Appendix A

List of closing quotes

List of the closing quotes of Kiwa Bio-Tech Products Group Corporation during
the dates of the draw down are as followed:

----------------------------------------------------------------------------
     Date          RMB       Closing quote on date of     No. of warrants
                                     drawdown                 granted
----------------------------------------------------------------------------
     25-Oct-05     9,770.30            0.011                   6053
     25-Nov-05    33,970.30            0.011                   21047
     15-Dec-05    66,000.00            0.014                   40891
----------------------------------------------------------------------------
    Total        109,740.60                                   67,991
----------------------------------------------------------------------------

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