Document:

exhibit-10_1creditagreement.htm

AMENDMENT NO. 1 TO CREDIT AGREEMENT

 

This Amendment No. 1 to Credit Agreement (this "Amendment"), dated as of April 19, 2011 (the "Effective Date"), is entered into among CORE LABORATORIES N.V., a Netherlands limited liability company, (the "Parent"), and CORE LABORATORIES LP, a Delaware limited partnership (the "US Borrower" and, together with the Parent, the "Borrowers" and, each a "Borrower"), the lenders party to the Credit Agreement described below, and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the "Administrative Agent"), Swing Line Lender and L/C Issuer.

 

INTRODUCTION

 

Reference is made to the Fifth Amended and Restated Credit Agreement dated as of December 17, 2010 (as modified from time to time, the "Credit Agreement"), among the Borrowers, the lenders from time to time party thereto (collectively, the "Lenders" and individually, a "Lender"), and the Administrative Agent.

 

WHEREAS, the Borrowers wish to increase the Aggregate Commitments from $125,000,000 to $300,000,000;

 

WHEREAS, certain Lenders have agreed to increase their Commitments;

 

WHEREAS, the Borrowers have requested, and the Lenders and the Administrative Agent have agreed, on the terms and conditions set forth herein, to make certain other amendments to the Credit Agreement.

 

NOW THEREFORE, in connection with the foregoing and for other good and valuable consideration, the Borrowers, the Lenders, and the Administrative Agent hereby agree as follows:

 

Section 1. Definitions; References.  Unless otherwise defined in this Amendment, each term used in this Amendment that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.

 

Section 2. Amendment of Credit Agreement.

 

(a) Section 1.01 of the Credit Agreement is hereby amended by deleting the definition of "Consolidated Net Worth" in its entirety and inserting the following definition in appropriate alphabetical order:

 

"Consolidated Total Assets" means, with respect to any Person as of any date, the amount which, in accordance with Agreement Accounting Principles, would be set forth under the caption "Total Assets" (or any like caption) on a consolidated balance sheet of such Person and its consolidated Subsidiaries.

 

(b) Section 2.14(a) of the Credit Agreement is hereby amended by replacing such Section in its entirety with the following:

 

 

  

  

  

 

(a)           Request for Increase.  Provided there exists no Default, upon notice to the Administrative Agent (which shall promptly notify the Lenders), the Parent may from time to time, request an increase in the Aggregate Commitments to an amount not exceeding $350,000,000 (the "Facility Increase"), cumulative of all outstanding Credit Extensions.  At the time of sending such notice, the Parent (in consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Lenders).

 

(c) Section 7.03(m) of the Credit Agreement is hereby amended by replacing such Section in its entirety with the following:

 

(m)           other Indebtedness of any Subsidiary or Subsidiaries (in addition to any Indebtedness otherwise permitted pursuant to this Section 7.03); provided such Indebtedness in the aggregate at any one time outstanding does not exceed five percent (5%) of the Consolidated Total Assets of the Borrowers and their Subsidiaries as of the end of the fiscal quarter most recently ended for which financial statements have been provided;

 

(d) Section 7.03(n) of the Credit Agreement is hereby amended by replacing such Section in its entirety with the following:

 

(n)           Indebtedness (i) of the US Borrower in connection with the Convertible Notes in a principal amount outstanding not to exceed $300,000,000, (ii) of the Parent in connection with the guaranty of the US Borrower's obligations with respect to the Convertible Notes in a principal amount outstanding not to exceed $300,000,000, or (iii) any refinancing or replacement by the US Borrower or the Borrowers of such original Indebtedness and Indebtedness of the Parent or any Guarantors in connection with the guaranty thereof; provided that in the case of any refinancing or replacement of such Indebtedness described in clause (iii) above, (1) the stated principal amount of such refinanced or replaced Indebtedness is not greater than $300,000,000 (even if the principal amount outstanding on the Convertible Notes at the time of such refinancing or replacement is less than $300,000,000), (2) the principal maturity date for such Indebtedness is no earlier than three months after the Maturity Date, (3) such Indebtedness does not require any scheduled repayment, defeasance, or redemption of any principal amount thereof prior to maturity, and (4) such Indebtedness is subject to financial covenants which are no more restrictive than the financial covenants set forth in this Agreement;

 

(e) Section 7.04(b) of the Credit Agreement is hereby amended by replacing such Section in its entirety with the following:

 

  

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(b)           Neither Borrower will, nor will it permit any of its Subsidiaries to (i) sell, transfer, assign or otherwise dispose of the capital stock of any Loan Party or (ii) other than pursuant to Permitted Intercompany Transactions, sell, transfer, assign or otherwise dispose of any Property (except for sales or other dispositions of inventory and surplus or obsolete equipment in the ordinary course of business) in excess, in the aggregate for all such sales, transfers, assignments, and dispositions prior to the Maturity Date, of an amount equal to seven and one-half percent (7.5%) of the Consolidated Total Assets of the Borrowers and their Subsidiaries as of the end of the fiscal quarter most recently ended for which financial statements have been provided.

 

(f) Section 7.05(f) of the Credit Agreement is hereby amended by replacing such Section in its entirety with the following:

 

(f)           (i) Restricted Disbursements constituting settlement of the Warrants upon redemption or maturity thereof or (ii) the cash repurchase by the Parent of the Warrants, at or prior to maturity, if Consolidated Liquidity  (as measured on a pro forma basis after giving effect to such repurchase) exceeds $40,000,000;

 

(g) Section 7.05(k) of the Credit Agreement is hereby amended by replacing such Section in its entirety with the following:

 

(f)           any other Restricted Disbursement, in addition to those specifically permitted in this Section 7.05, if after giving effect to such Restricted Disbursements the aggregate amount of all such Restricted Disbursements does not exceed $35,000,000;

 

(h) Section 7.11 of the Credit Agreement is hereby amended by inserting the following clause at the end of such section:

 

, other than, in the case of Indebtedness permitted pursuant to Section 7.03(n), provisions in the documents or instruments governing the terms thereof that require that (A) such Indebtedness be equally and ratably secured upon the granting of a Lien to secure the Obligations (except with respect to Cash Collateral required for outstanding Letters of Credit) or (B) any Subsidiary that hereafter guaranties the Obligations also guaranty such Indebtedness.

 

(i) Schedule 2.01 of the Credit Agreement is hereby amended by deleting it and replacing it in its entirety with Schedule 2.01 attached hereto.

 

Section 3. Commitment Increases.  By their respective signatures below, the Commitment of each Lender is increased, as of the Effective Date, to the amount set forth opposite such Lender's name on Schedule 2.01 attached hereto.  Each such Lender (a) acknowledges that it has, independently and without reliance upon the Administrative Agent, any other agent or any other Lender or L/C Issuer and based on such documents and information as it

 

  

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has deemed appropriate, made its own credit analysis and decision to increase its Commitment; and (b) agrees that it will, independently and without reliance upon the Administrative Agent, any other agent or any other Lender or L/C Issuer, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents.

 

Section 4. Representations and Warranties.  Each Borrower represents and warrants that (a) the execution, delivery, and performance of this Amendment by each Loan Party are within the corporate or equivalent power and authority of such Loan Party and have been duly authorized by all necessary corporate or other organizational action; (b) this Amendment, and the Credit Agreement as amended hereby, constitute legal, valid, and binding obligations of each Loan Party, enforceable against each Loan Party in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws of general applicability affecting the enforcement of creditors' rights and the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or law); (c) the representations and warranties of the Borrowers and each other Loan Party contained in each Loan Document are true and correct in all material respects as of the date of this Amendment, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; and (d) no Default or Event of Default exists under the Loan Documents.

 

Section 5. Effect on Credit Documents.  Except as amended herein, the Credit Agreement and all other Loan Documents remain in full force and effect as originally executed.  Nothing herein shall act as a waiver of any of the Administrative Agent's or any Lender's rights under the Loan Documents as amended, including the waiver of any default or event of default, however denominated.  Each Borrower acknowledges and agrees that this Amendment shall in no manner impair or affect the validity or enforceability of the Credit Agreement.  This Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of representations, warranties, and covenants under this Amendment may be a default or event of default under the other Loan Documents.

 

Section 6. Effectiveness.  This Amendment shall become effective, the Commitments shall be increased, and the Credit Agreement shall be amended as provided for herein, upon the satisfaction on or prior to the Effective Date of the following conditions:

 

(a) the Administrative Agent (or its counsel) shall have received (i) counterparts hereof duly executed and delivered by a duly authorized officer of each Borrower, each Guarantor, and by the Lenders whose consent is required to effect the amendments contemplated hereby;

 

(b) the Administrative Agent (or its counsel) shall have received each of the items listed on the Closing Documents List attached hereto as Annex I, each in form and substance reasonably acceptable to the Administrative Agent and, where applicable, duly executed and delivered by a duly authorized officer of each applicable Loan Party;

 

  

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(c) The Administrative Agent shall have received, for the account of each Lender increasing its Commitment, a fee of 62.5 basis points on the amount by which the amount of such Lender's Commitment is increased under this Amendment;

 

(d) The Parent shall have paid all fees, charges, and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) incurred in connection with the negotiation, preparation, execution and delivery of this Amendment and related documents to the extent then invoiced; and

 

Section 7. Reaffirmation of Guaranty.  By its signature hereto, each Guarantor represents and warrants that such Guarantor has no defense to the enforcement of the Guaranty to which it is a party, and that according to its terms such Guaranty will continue in full force and effect to guaranty the Borrowers' obligations under the Credit Agreement and the other amounts described in such Guaranty following the execution of this Amendment.

 

Section 8. Reaffirmation of Intercompany Subordination Agreement.  By its signature hereto, each Borrower and each Guarantor represents and warrants that it has no defense to the enforcement of the Subordination Agreement made by the Borrowers and the Guarantors for the benefit of the Administrative Agent, and that according to its terms the Subordination Agreement will continue in full force and effect to subordinate all intercompany indebtedness among the Loan Parties to the Obligations following execution of this Amendment.

 

Section 9. Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF TEXAS.

 

Section 10. Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns; provided, however, that (a) neither Borrower may assign or transfer its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender; and (b) the rights of sale, assignment and transfer of the Lenders are subject to Section 10.06 of the Credit Agreement.

 

Section 11. Miscellaneous.  The miscellaneous provisions set forth in Article X of the Credit Agreement apply to this Amendment.  This Amendment may be signed in any number of counterparts, each of which shall be an original, and may be executed and delivered electronically and by telecopier.

 

Section 12. ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

[signature page follows]

 

#2750056

  

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EXECUTED as of the first date above written.

 

	  	
CORE LABORATORIES N.V.

 

	
By:

	
Core Laboratories International B.V., its sole Managing Director

	  	  
	
By:

	
/s/ Jan Willem Sodderland

	
Name:

	
Jan Willem Sodderland

	
Title:

	
Managing Director

 

	  	
CORE LABORATORIES LP

 

	
By:

	
Core Laboratories LLC, its General Partner

	  	  
	
By:

	
/s/ Richard L. Bergmark

	
Name:

	
Richard L. Bergmark

	
Title:

	
Treasurer

 

	  	
CORE LABORATORIES SALES N.V., a Curaçao limited liability company

	  	  
	
By:

	
/s/ Paul W. Ritchie

	
Name:

	
Paul W. Ritchie

	
Title:

	
Managing Director

 

	  	
CORE LABORATORIES CANADA LTD., an Alberta, Canada corporation

 

	  	  
	
By:

	
/s/ Ken Chong

	
Name:

	
Ken Chong

	
Title:

	
Director

 

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	
CORE LABORATORIES (U.K.) LIMITED, a company organized under the laws of England and Wales

 

	  	  
	
By:

	
/s/ George Bruce

	
Name:

	
George Bruce

	
Title:

	
Director

 

 

	  	
SAYBOLT LP, a Delaware limited partnership

 

	
By:

	
Core Laboratories LLC, its General Partner

	  	  
	
By:

	
/s/ Richard L. Bergmark

	
Name:

	
Richard L. Bergmark

	
Title:

	
Treasurer

 

 

	  	
OWEN OIL TOOLS LP, a Delaware limited partnership

 

	
By:

	
Core Laboratories LLC, its General Partner

	  	  
	
By:

	
/s/ Richard L. Bergmark

	
Name:

	
Richard L. Bergmark

	
Title:

	
Treasurer

 

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	
BANK OF AMERICA, N.A., as Administrative Agent

	  	  
	
By:

	
/s/ Anthony W. Kell

	
Name:

	
Anthony W. Kell

	
Title:

	
Assistant Vice President

 

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	
BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

	  	  
	
By:

	
/s/ Gary L. Mingle

	
Name:

	
Gary L. Mingle

	
Title:

	
Senior Vice President

 

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	
COMERICA BANK, as a Lender

	  	  
	
By:

	
/s/ Cyd Dillahunty

	
Name:

	
Cyd Dillahunty

	
Title:

	
Vice President – Texas Division

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	
WELLS FARGO BANK, N.A., as a Lender

	  	  
	
By:

	
/s/ Brad Ellis

	
Name:

	
Brad Ellis

	
Title:

	
Vice President

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

	  	
JPMORGAN CHASE BANK, N.A., as a Lender

	  	  
	
By:

	
/s/ Marshall Trenckmann

	
Name:

	
Marshall Trenckmann

	
Title:

	
Vice President

 

Signature Page to Amendment No. 1 to Credit Agreement

  

  

  

 

SCHEDULE 2.01

COMMITMENTS

 

AND APPLICABLE PERCENTAGES

 

	
Lender

	
Commitment

	
Applicable Percentage

	
Bank of America, N.A.

	
 $120,000,000

	
40.0000000000%

	
Comerica Bank

	
   $60,000,000

	
20.0000000000%

	
Wells Fargo Bank, N.A.

	
   $60,000,000

	
20.0000000000%

	
JPMorgan Chase Bank, N.A.

	
   $60,000,000

	
20.0000000000%

	
Total

	
 $300,000,000

	
100.000000000%

 

Schedule 2.01 to Credit Agreement

 

  

  

  

 

NOTE

 

$[Commitment Amount] April 19, 2011

 

Each of Core Laboratories N.V., a Netherlands limited liability company and Core Laboratories LP, a Delaware limited partnership (each herein called a "Borrower" and collectively called the "Borrowers"), hereby jointly and severally promises to pay to the order of [NAME OF LENDER] (the "Lender") the principal sum of [COMMITMENT AMOUNT] DOLLARS ($[commitment amount]) or, if less, the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the Agreement (as hereinafter defined), to the Administrative Agent for the account of the Lender in the currency in which such Committed Loan was denominated and in Same Day Funds at the Administrative Agent's Office for such currency, together with interest on the unpaid principal amount hereof at the rates and on the dates set forth in the Agreement.  The Borrowers shall pay the principal of and accrued and unpaid interest on the Loans in full on the Facility Termination Date.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement.

 

The Lender shall, and is hereby authorized to, record on the schedule attached hereto, or to otherwise record in accordance with its usual practice, the date and amount of each Loan and the date and amount of each principal payment hereunder.

 

This Note is one of the Notes issued pursuant to, and is entitled to the benefits of, that certain Fifth Amended and Restated Credit Agreement dated as of December 17, 2010 (which, as it may be amended or modified and in effect from time to time, is herein called the "Agreement"), among the Borrowers, the lenders party thereto, including the Lender, and Bank of America, N.A, as Administrative Agent, to which Agreement reference is hereby made for a statement of the terms and conditions governing this Note, including the terms and conditions under which this Note may be prepaid or its maturity date accelerated.  This Note is guaranteed pursuant to the Guaranties, all as more specifically described in the Agreement, and reference is made thereto for a statement of the terms and provisions thereof.  Capitalized terms used herein and not otherwise defined herein are used with the meanings attributed to them in the Agreement.

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

 

 

 

  

  

CORE LABORATORIES N.V., a Netherlands limited liability company

By:  Core Laboratories International B.V., its sole Managing Director

By:                                                                      

Jan Willem Sodderland

Managing Director of Core Laboratories International B.V.

CORE LABORATORIES LP, a Delaware limited partnership,

By:  Core Laboratories LLC, its General Partner

By:                                                                      

      Richard L. Bergmark

      Treasurer

Signature Page to Note

  

  

  

SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL

 

TO

 

NOTE OF

 

CORE LABORATORIES N.V. AND CORE LABORATORIES LP,

 

DATED APRIL 19, 2011

 

	

Date

	

Type of Loan Made

	

Currency and Amount of Loan Made

	

End of Interest Period

	

Amount of Principal or Interest Paid This Date

	

Outstanding Principal Balance This Date

	

Notation Made Byprimeglobal_8k-ex1001.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”) is made effective as of April 21,2011 (the “Effective Date”, by and between Prime Global Capital Group Incorporated, a Nevada corporation (the “Company”), and Weng Kung Wong (the “Executive”).

 

RECITALS

 

WHEREAS, the Company desires to employ Executive, and Executive has agreed to be employed bythe Company, in accordance with the terms and conditions of this Agreement.

 

NOW THEREFORE, in consideration of the mutual promises and conditions contained in this Agreement, the Company and Executive agree as follows:

 

AGREEMENT

 

1.  Employment.

 

A. Term.  The term shall commence on the Effective Date and shall expire on April 20, 2013, unless earlier terminated pursuant to the provisions set forth herein (the “InitialTerm”).The term of this Agreement shall automatically extend for subsequent one (1) year periods from and after the Initial Term (each, a “Renewal Term”, and together with the Initial Term, the “Term”), unless this Agreement is otherwise earlier terminated pursuant to the provisions set forth herein.

 

B.  Title and Duties.  Executive shall serve as the Chief Executive Officer (“CEO”) of the Company. The Executive will report to theBoard of Directors of the Company (the “Board”) and such other officer of the Company as the Board may determine from time to time.  As the CEO, Executive shall have the authority and duty to manage and oversee the operationsof the Company and shall have such other duties and responsibilities as the Board shall determine, assign, or delegate from time to time during the Term.  Subject to the foregoing, Executive shall be subject to the overall supervision and policies of the Board.Executive agrees to devote hisprofessional skills on a full time basis to the business of the Company.  Executive shall perform hisduties faithfully and diligently.

 

2.  Compensation and Expenses.  Subject to Section 4, during the Term:

 

A.  Salary and Bonuses.  The Company shall pay to Executive in hisrole as the CEOof the Company an annual base salary of One Hundred EightyThousand Dollars (US $180,000).  The base salary shall be payable in shares of the Company’s common stock at a per share price equal to the volume weighted average closing price (or if no closing price is available, the average of the bid and asked prices per share reported on a consolidated basis on the principal stock exchange or market on which the security is then traded)of the Company’s common stock during the tentrading days immediately preceding the end of each fiscal quarter.  Such shares shall be delivered as soon as practicable after the end of each such fiscal quarter.  Executive shall also be eligible for bonus payments as the Board may determine in its sole discretion from time to time.  The Company shall withhold and deduct from all compensation payments made to Executive all payroll taxes and all other amounts required by federal, state or local laws, and any other deductions, which may be authorized by Executive.

 

  

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B.  Health and other benefits.  The Company shall provide Executive with health, dental and or disability insurance coverages and such other benefits (including sick and personal days) afforded to other similarly situated senior executive employees of the Company as the Company may establish or determine from time to time.

 

C.  Vacation and Personal/Sick Days.  During the Term, Executive shall earn vacation time of ten (10) business days per year, in accordance with the Company's vacation policies.  Such vacation shall be taken at such time or times during the applicable year as may be mutually agreed upon by Executive and the President, subject to Executive's submission of an advance notice of such vacation.  Executive shall also be entitled to fourteen (14) sick days and ten (10) personal days on an annual basis, which shall accrue in accordance with the Company’s policies.

 

D.  Business expenses.The Company agrees to reimburse Executive for all reasonable and documented business-related expenses actually incurred in connection with the performance of his duties hereunder and submitted to the Company in compliance with such policies and procedures as the Company may establish from time to time.

 

3.  Termination of Employment.  The Term shall terminate upon the earlier to occur of the following:

 

A.  After the Initial Term, upon the delivery of sixty(60) days prior written noticeby either party to the other.

 

B.  Immediately and automatically (without the requirement of further action by the parties) upon the death of Executive.

 

C.  Immediately upon written notice from the Company to Executive that his employment is being terminated as a result of the permanent disability of Executive.  Executive shall be considered permanently disabled if, for a period offorty-five(45) consecutive days, or ninety (90) days during any one (1) year period, Executive, as a result of a physical or mental disability, is incapable, after reasonable accommodation, of performing his duties under this Agreement on a permanent, full-time basis.  In the event of a dispute as to whether Executive is permanently disabled, the Company may at its expense refer the matter to a mutually acceptable licensed practicing physician, and Executive agrees to submit to such tests and examinations as such physician shall deem appropriate;

 

D.  Immediately upon written notice from the Company to Executive that hisemployment is being terminated for “Cause.”  As used herein, for “Cause” means a termination of Executive’s employment by the Company due to:

 

(1) Executive’s continued gross negligence and or willful misconduct in the performance of his duties (including but not limited tofraud or deceit, continued failure to comply with the reasonable and lawful directives of the Board or the Chief Executive Officer, continued material violation of the Company’s policies or law or regulation applicable to the business of the Company or of its affiliates, or excessive absenteeism);

 

  

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(2) the indictment or conviction (by trial, upon a plea or otherwise) of Executive, or the admission of guilt by Executive, of a felony or a crime involving moral turpitude or any other act of dishonesty, fraud or deceit that is punishable by imprisonment of thirty (30) days or more, provided, however, that nothing in this Agreement shall obligate the Company to pay any compensation or benefits during any period that Executive is unable to perform his duties hereunder due to any incarceration, and also provided, however, that nothing shall prevent Executive’s termination under another section of this Agreement if it provides independent grounds for termination;

 

(3) a breach of fiduciary duty to the Company;

 

(4) a material breach of this Agreement (including without limitation, a breach of Section5); or

 

(5)  any breach of this Agreement which has not been cured within thirty (30) days of receipt of written notice thereof, or with respect to breaches that reasonably cannot be cured within a thirty (30) day period, the failure to commence good faith efforts to cure such breach within such thirty (30) day period.

 

4.  Effect of Termination.

 

A.  Whether termination is initiated by Company, Executive, or both, Executive shall return all property of Company, includingall Company equipment in Executive's possession, all Company keys and credit cards, all originals and copies of Company books, manuals, records, reports, notes, contracts, customer lists and Confidential Information, including items saved on computer hard drives, disks, flash drives, CD ROMS, tapes, back-up tapes, DVDs and all other types of recordings.In addition, Executive shall not retain any copies, abstracts or other physical embodiment of any Confidential Information.

 

B.  Upon a termination of this Agreementfor any reason, the Company shall pay Executive the following:

 

(i)  Executive's pro-rated salary, benefits and bonus payments through the date of termination;

 

(ii)  any unused, accrued vacation and sick and personal days through the date of termination; and

 

(iii)  reimbursement of any business expensesincurred in accordance with Paragraph 2.D above and which have not been previously reimbursed.

 

C.  The Company shall have no obligation to pay any further compensation or benefits to Executive, his estate, beneficiaries, heirs, assigns or representatives. Upon termination of Executive's employment for any reason, Executive shall be deemed to have automatically (without any further action on the part of any party hereto) resigned from any and all offices and directorships then held with Company, its affiliates or subsidiaries.

 

  

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5.  Covenants of Executive.

 

A.  Non-competition.  Executive covenants and agrees, that during the Termand for a period of one (1) year thereafter (the “Restrictive Period”), he shall not, either directly or indirectly engage in any Competitive Activity in any jurisdiction in which the Company operates or intends to operate.  For purposes of this covenant not to compete, “Competitive Activity” means:  (a) providing services to any business that primarily or substantially engages in any aspect of the Company’s business as then currently operated or contemplated or any discrete or identifiable portion or division of any business where such portion or division engages primarily or substantially in any aspect of the Company’s business as then currently operated or contemplated (collectively, the “Business”), in any capacity, including, but not limited to, as a principal, or on hisown account, or solely or jointly with others as a director, officer, member, manager, agent, employee, security holder, independent contractor, consultant, partner, trustee or beneficiary of a trust, or stockholder or limited partner; (b) investing in, lending credit or money to, managing, operating or controlling, in any way, any person that engages in any aspect of the Business; (c) knowingly engaging or participating in any effort or act to compete with the Company in any aspect of the Business; or (d) otherwise knowingly lending or allowing hisskill, knowledge or experience to be used for any of the foregoing activities.  Notwithstanding the foregoing, it shall not constitute “Competitive Activity” for the Executive to become the registered or beneficial owner of up to one percent (1%) of any class of the capital stock of a competing publicly traded company, provided that Executive does not actively participate in the business of such company until such time as this covenant not to compete has expired.

 

B.  Confidentiality.  Executive covenants as follows:

 

(i) “Confidential Information” includes, but is not limited to, matters of a business nature such as trade secrets, information about procurement, finances, costs and profits, business plans, marketing and advertising plans and strategies, plans of the Company to expand its business, personnel information, records, and/or other confidential or proprietary information belonging to the Company or relating to the Business of the Company.

 

(ii) Executive agrees to hold and safeguard all Confidential Information in trust for the Company, and agrees that it will not, without the prior written consent of the Company, use, misappropriate or disclose or make available to anyone for use outside of the Company or not for the benefit of the Company, at any time, any Confidential Information.  Notwithstanding the foregoing, Executive may disclose Confidential Information if such information becomes publicly known without fault of the Executive, or where the Executive is obligated to disclose such information by operation of law; provided, however, that if the Executive receives a subpoena or other legal process, or otherwise receives a legally-binding request (whether voluntary or involuntary) from a third party, the response to which reasonably could result in the disclosure of Confidential Information, he shall provide notice thereof to the Company within two (2) business days of such subpoena, legal process or request.  The Executive’s obligations under this Section 5.B(ii) with respect to the Confidential Information, including, but not limited to, their notice obligations hereunder, will survive expiration or termination of this Agreement.

 

(iii) All records, files, lists, drawings, documents, manuals, policies, models, brochures, written methodologies, operating procedures, equipment, software or intellectual property relating to the business of the Company shall be promptly returned to the Company upon the Company’s request.

 

  

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C.  Non-Solicitation.  Executive shall not, during the Restrictive Period, induce or attempt to induce any contractors, employees or representatives of  the Company (or any of their respective affiliates engaged in the Business) to (a) stop or otherwise limit working for, contracting with or representing the Company or any of their respective affiliates with respect to the Business or (b) work for, contract with or represent any business that is directly or indirectly competitive with the Company or any of their operations.  Executive shall not, during the Restrictive Period, induce or attempt to induce any customer the Company (or those of any of its affiliates engaged in the Business) to (x) stop or otherwise limit contracting or conducting business with the Company or any of their respective affiliates with respect to the Business or (y) contract or conduct business with any business that is directly or indirectly competitive with the Company or any of their operations.

 

D.  Ownership of Intellectual Property.

 

Each Employee Invention will belong exclusively to the Company. Executive acknowledges that Employee Inventions are works made for hire and are the property of the Company, including any copyrights, patents or other intellectual property rights pertaining thereto.  If it is determined that any such works are not works made for hire, Executive hereby assigns to the Company all of Executive’s right, title and interest, including all rights of copyright, patent and other intellectual property rights, to or in such Employee Inventions.  Executive covenants that he will promptly:

 

(i)  disclose to the Company in writing any Employee Invention;

 

(ii)  assign to the Company, at the Company’s cost and request and without additional compensation, all of Executive’s rights to Employee Inventions for the United States of America and all foreign jurisdictions;

 

(iii)  execute and deliver to the Company, at the Company’s cost, such applications, assignments and other documents as the Company may reasonably request in order to apply for and obtain copyrights, patents or other registrations with respect to any Employee Invention in the United States of America and any foreign jurisdictions;

 

(iv)  sign all other papers necessary to carry out the above obligations; and

 

(v)  give testimony and render at no expense to Executive any other assistance in support of the Company’s rights to any Employee Invention.

 

“Employee Invention” means any idea, discovery, concept, invention, technique, modification, process or improvement (whether or not patentable) and any work of authorship (whether or not copyright protection may be obtained therefor) created, conceived or developed by Executive, either solely or in conjunction with others, during the Term or during any period in which Executive was employed or otherwise engaged by the Company, that relates in any way to, or is useful in any manner in, the Business (as then being conducted or proposed to be conducted by the Company), and any such item created by Executive, either solely or in conjunction with others, following termination of Executive’s employment with the Company, that is based upon or uses Confidential Information.

 

 

  

5

  

 

E.  Notification.  Within ten (10) days after accepting any other employment, Executive will give notice to the Company of the identity of Executive’s new employer for the sole purpose of enabling the Company to notify such new employer that Executive is bound by this Agreement.

 

F.  Equitable Relief.  Executive hereby acknowledges that the provisions of Section 5 are reasonable and necessary to protect the legitimate interests of the Company and that any violation of such provisions would result in irreparable injury to the Company.  In the event of a violation of any of the provisions of Section 5, Executive further agrees that the Company shall, in addition to all other remedies available to it, be entitled to equitable relief by way of injunction and any other legal or equitable remedies.

 

6.  General Provisions.

 

A.  Arbitration.  Any controversy or claim arising out of or in relation to this Agreement or the validity, construction or performance of this Agreement, or the breach thereof, shall be resolved by arbitration in accordance with the rules and procedures of the American Arbitration Association, applicable to employment disputes, as said rules may be amended from time to time with rights of discovery if requested by the arbitrator.  Such rules and procedures are incorporated and made a part of this Agreement by reference.  The parties shall have the right to engage in pre-hearing discovery in connection with such arbitration proceedings.  The parties agree hereto that they will abide by and perform any award rendered in any arbitration conducted pursuant hereto, that any court having jurisdiction thereof may issue a judgment based upon such award that that the prevailing party in such arbitration and or confirmation proceeding shall be entitled to recover its or hisreasonable attorneys' fees, expenses and other costs incurred in such proceeding in addition to any other relief to which such party may be entitled.  The arbitration will be held in Kuala Lumpur, Malaysia.  Any arbitration award shall be final, binding and non-appealable.

 

B.  No Prior Employment Restrictions.  Executive warrants that the Executive is not restricted by any restrictive covenant or confidentiality agreement of any type or nature from any prior employment from performing any of the duties required by this Agreement.  Executive agrees that he will not improperly use or disclose confidential information or trade secrets of any prior employer or third person or bring onto the Company’s premises any confidential information or trade secrets belonging to any prior employer or third person unless Executive has received the prior written consent of such prior employer or third party.

 

C.  Assignment.  This Agreement is personal to Executive and shall not be assigned by Executive.  Any such attempted assignment shall be null and void.

 

D.  Successors.  This Agreement shall inure to the benefit and be binding upon Company and its subsidiaries, successors, and assigns and any person acquiring, whether by merger, consolidation, purchase of assets, or otherwise, all or substantially all of Company's assets.

 

E.  Waiver.  No delay or omission by the Company or Executive in exercising any right under this Agreement shall operate as a waiver of that or any other right.  No waiver of any provision of this Agreement, or consent to any departure by either party from any provision of this Agreement, shall be effective unless it is in writing, designated a waiver, and signed by the party waiving the right.  Such a waiver shall be effective only in the specific instance and for the specific purpose for which it is given.

 

  

6

  

 

F.  Severability.  The provisions of this Agreement are divisible.  If any provision shall be deemed invalid or unenforceable, the provision shall be deemed limited to the extent necessary to render it valid and enforceable and the remaining provisions of this Agreement shall continue in full force and effect without being impaired or invalidated in any way.

 

G.  Amendment.  This Agreement may not be altered or amended except in a writing signed by both Executive and the Company, following approval of the Board.

 

H.  Construction.  The captions used in connection with this Agreement are for reference purposes only and shall not be construed as part of this Agreement.  This Agreement shall be deemed to have been jointly drafted by the parties, and shall not be construed against any party.  The captions of the sections of this Agreement are for reference only and are not to be construed in any way as a part of this Agreement.

 

I.  Governing law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to conflict of law rules or principles.

 

J.  Entire Agreement.  This Agreement supersedes all prior agreements, understandings, and communications between Executive and the Company, whether written or oral, express or implied, relating to the subject matter of this Agreement, and is intended as a complete and final expression of the terms of the Agreement between Executive and the Company.  The parties agree that neither they nor anyone acting on their behalf made any agreements, promises, or representations other than those set forth in this Agreement.

 

K.  Survival.  The provisions of Sections 4 through and including 6 of this Agreement shall survive the expiration or earlier termination of this Agreement.

 

L.  Counterparts; Facsimile.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which, taken together, shall be deemed to be one and the same instrument.The parties hereto agree to accept a facsimile transmission copy of their respective actual signatures as evidence of their actual signatures to this Agreement and any modification or amendment of this Agreement.

 

M.  Notice.  Any notice provided for in this Agreement must be in writing and must be either (i) personally delivered, (ii) mailed by registered or certified first class mail, prepaid with return receipt requested, (iii) sent by a recognized overnight courier service or (iv) sent by facsimile with a machine generated confirmation, to the recipient at the address indicated below:

 

  

7

  

 

	
If to Executive:

Weng Kung Wong

_________________________

_________________________

Facsimile:  ________________

	
If to the Company:

 

Prime Global Capital Group Incorporated

11-2, Jalan 26/70A, Desa Sri Hartamas

50480 Kuala Lumpur, Malaysia

Attn:  Chief Financial Officer

Facsimile: 603-6201-3226

	  	  

 

or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement will be deemed to have been given on the earlier to occur of (a) the date such notice is received, (b) three (3) days after the date of mailing if sent by certified or registered mail, (c) one (1) day after the date such notice is delivered to the overnight courier service if sent by overnight courier, or (d) the next business day following transmission by facsimile.

 

N.  Acknowledgment by Executive.  Executive acknowledges and represents that he is knowledgeable and sophisticated as to business matters, including the subject matter of this Agreement, that he has read this Agreement, and that he understands its terms.  Executive acknowledges that prior to assenting to the terms of this Agreement he has been given a reasonable time to review it, to consult with counsel of his own choice, to negotiate at arm's length with Company as to its terms and contents and is executing this Agreement voluntarily, free from any influence, coercion or duress of any kind.

 

 

 

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8

  

 

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the date first set forth above.

 

 

Weng Kung Wong                           

Weng Kung Wong

 

	
  

	
PRIME GLOBAL CAPITAL GROUP INCORPORATED,a Nevada corporation

	
  

	
By:

	

/s/ Liong Tat Teh                              

	
  

	
Liong Tat Teh

	
  

	
Chief Financial Officer

 

 

 

 

SIGNATURE PAGE TO EMPLOYMENT AGREEMENT

WENG KUNG WONG

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