Document:

pmbs_ex101.htm

EXHIBIT 10.1

 

Richard Berman

Consulting Agreement

THIS CONSULTING AGREEMENT (the “Agreement”) is made and entered into effective the date set forth below on the signature page by and between Richard Berman (the “Consultant”); whose principal place of business is 420 Lexington Avenue, Suite 350, New York, New York 10170 and PuraMed BioScience (the “Client”).

WHEREAS, the Consultant is in the business of providing Financial Consulting Services and to use its  Expertise and Contacts in the areas of raising capital to try and raise four to six million dollars in the first year starting from the date of this agreement and more thereafter, depending on the performance of the Client.

In addition, the Client also expects to use the Expertise and Contacts of the Consultant in the areas of Investor Relations, Public Relations, and the development of a sound fiscal strategy.  It is expected by the Client that the aforementioned expertise of the Consultant will lead to an increase in working capital, an increase in the Clients active shareholder base, accelerate market awareness and stock ownership through retail investors, increase liquidity and an increased volume in the Clients stock performance.

WHEREAS, the Client deems it to be in its best interest to retain the Consultant to render to the Client such services such as may be needed; and

WHEREAS, the Consultant is ready, willing and able to render such consultant and advisory services to the Client.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows.

	
1.  

	
Consulting Services.  The Client hereby retains the Consultant as an independent consultant to the Client and the Consultant hereby accepts and agrees to such retention.

 

It is acknowledged and agreed by the Client that the Consultant carries no professional licenses, and is not rendering legal advice or performing accounting services, nor acting as an investment advisor or broker/dealer within the meaning of the applicable state and federal securities laws.  The services of the Consultant shall not be Exclusive nor shall the Consultant be required to render any specific number of hours or assign specific personnel to the Client or its projects.

 

	
2.  

	
Independent Contractor.  The Consultant agrees to perform its consulting duties hereto as an independent contractor.  Nothing contained herein shall be considered to as creating an employer-employee relationship between the parties to this Agreement.  The Client shall not make social security, worker’s compensation or unemployment insurance payments on behalf of consultant.  The Parties hereto acknowledge and agree that the consultant cannot guarantee the results or effectiveness of any of the services rendered or to be rendered by the Consultant.  Rather, Consultant shall conduct its operations and provide its services in a professional manner and in accordance with good industry practice.  The Consultant will use its best efforts.

 

 

  

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3.  

	
Time, Place and Manner of Performance.  The Consultant shall be available for advice and counsel to the officers and directors of the Client as such reasonable and convenient times and places as may be mutually agreed upon.  Except as aforesaid, the time, place and manner of performance of the services hereunder, including the amount of time to be allocated by the Consultant to any specific service, shall be determined by the parties hereto.

	
4.  

	
Compensation. $50,000 down and 2,400,000 Shares of Restricted Common Stock.  The Consultant agrees to accept 1,200,000 shares as payment for the first 12 months of the contract.  If the Client chooses for any reason to terminate the contract during the first 12 months, the Consultant will return the remaining 1,200,000 shares.  If the client chooses to continue the contract for the remaining 24 months, the Consultant will retain the remaining 1,200,000 shares as payment for the 24 months. The Consultant agrees not to ask the Company for any further compensation until the three year period is expired or $4 million is raised, whichever comes first.

	
5.  

	
Term.   Three (3) years.

	
6.  

	
Termination.  The Consultant’s relationship with the Client hereunder may be terminated for any reason whatsoever, at any time, by either party, upon ninety (90) days written prior notice.  The Client may terminate the relationship for any reason whatsoever upon thirty (30) days written notiece with the first 12 months of the agreement.

	
(a)  

	
This agreement shall automatically terminate upon the dissolution, bankruptcy or insolvency of the Client or the Consultant.

	
(b)  

	
This Agreement may be terminated by either party upon giving written notice to the other party if the other party is in default hereunder and such default is not cured within thirty (30) days of receipt of written notice of such default.

	
(c)  

	
The Consultant and the Client shall have the right and discretion to terminate this Agreement should the other party in performing their duties hereunder, violate any law, ordinance, permit or regulation of any governmental entity, except for violations which either singularly or in the aggregate do not have or will not have a material adverse effect on the operations of the Client.

	
(d)  

	
In the event of any termination hereunder all shares paid to the consultant through the date of termination shall be fully earned and non-refundable and the parties shall have no further duties or responsibilities to each other except that the Client shall be responsible to make any and all payments if any, due to the Consultant through the date of the termination and the Consultant shall be responsible to comply with the provisions of section 8 hereof.

	
7.  

	
Work Product.  It is agreed that all information and materials produced for the Client shall be the property of the Client, free and clear of all claims thereto by the Consultant, and the Consultant shall retain no claim of authorship therein.  Also, the Consultant cannot disseminate any written information regarding Client without the written consent of Client.

	
8.  

	
Confidentially.  The Consultant recognizes and acknowledges that it has and will have access to certain confidential information of the Client and its affiliates that are valuable, special and unique assets and property of the Client and such affiliates.  The Consultant will not, during the term of this Agreement, disclose, without the prior written consent or authorization of the Client, any of such information to any person, for any reason or purpose whatsoever.  In this regard, the Client, agrees that such authorization or consent to disclose may be conditioned upon the disclosure being made pursuant to a secrecy agreement, protective order, provision of statue, rule, regulation or procedure under which the confidentially of the information is maintained in the hands of the person to whom the information is to be disclosed or in compliance with the terms of a judicial order or administrative process.

	
9.  

	
Conflict of Interest.  The Consultant shall be free to perform services for other persons. The Consultant will notify the Client of its performance of consultant services.  Upon receiving such notice, the Client may terminate this Agreement or consent to the Consultant’s outside consulting activities; failure to terminate this Agreement, within seven (7) business days of receipt of written notice of conflict, shall constitute the Client’s ongoing consent to the Consultant’s outside consulting services.

	
10.  

	
Disclaimer of Responsibility for Act of the Client.  In no event shall the Consultant be authorized or required by this agreement to represent or make management decisions for the Client.  The Consultant shall under no circumstances be made liable for any expense incurred or loss suffered by the Client as a consequence of such decisions made by the Client or any affiliates or subsidiaries of the Client.

  

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11.  

	
Indemnification.

	
(a)  

	
Indemnity by the Client.  The Client shall protect, defend, indemnify and hold Consultant and its assigns and attorneys, accountants, employees, officers and directors harmless from and against all losses, liabilities, damages, judgments, claims, counterclaims, demands, actions, proceedings, costs, and expenses (including reasonable attorneys’ fees) of every kind and character resulting from, relating to or arising out of (a) the inaccuracy, non-fulfillment or breach of any representation, warranty, covenant or agreement made by the Client herein; or (b) negligent or willful misconduct by the client, occurring during the term thereof with respect to any of the decisions made by the Client.  (c) A violation of state or federal securities law which causes consultant damage.

	
(b)  

	
Indemnity by the Consultant.  The Consultant will protect, defend, indemnify and hold Client and its assigns and attorneys, accountants, employees, officers and directors harmless from and against all losses, liabilities, damages, judgments, claims, counterclaims, demands, actions, proceedings, costs, and expenses (including reasonable attorneys’ fees) of every kind and character resulting from, relating to or arising out of (a) the inaccuracy, non-fulfillment or breach of any representation, warranty, covenant or agreement made by the Consultant herein; or (b) negligent or willful misconduct by the Consultant, occurring during the term thereof with respect to any of the decisions made by the Consultant. (c) As a result of the Consultant, agents, or employees of the Consultant being found guilty of a violation of a state or federal Securities law that caused the Client damage.

	
12.  

	
Notices.  Any notices required or permitted to be given under this Agreement shall be sufficient if in writing and delivered or sent by registered or certified mail, or by Federal Express or other recognized overnight courier to the principal office of each party.

	
13.  

	
Waiver of Breach.  Any waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by any party.

	
14.  

	
Assignment.  This Agreement and the right and obligations of the Consultant hereunder shall not be assignable without the written consent of the Client.

	
15.  

	
Applicable Law.  It is the intention of the parties hereto that this Agreement and the performance hereunder and all suits and special proceedings hereunder be construed in accordance with and under and pursuant to the laws of the State of Wisconsin and that in any action, special proceeding or other proceeding that may be brought arising out of, in connection with or by reason of this Agreement, the law of the State of Wisconsin shall be applicable and shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction on which any action or special proceeding may be instituted.

	
16.  

	
Severability.  All agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid by any competent court, the Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein.

	
17.  

	
Entire Agreement.  This Agreement constitutes and embodies the entire understanding and agreement of the parties and supersedes and replaces all prior understandings, agreements and negotiations between the parties.

	
18.  

	
Waiver and Modification.  Any waiver, alteration, or modification of any of the provisions of this Agreement shall be valid only if made in writing and signed by the parties hereto.  Each party hereto, may waive any of its rights hereunder without affecting a waiver with respect to any subsequent occurrences or transactions hereof.

 

	
19.  

	
Binding Arbitration.  Any controversy between the parties hereto arising out of our relating to this agreement or breach thereof, including but not limited to the performance of the whole or any part of this agreement or involving the construction or application of any of the terms, covenants, or conditions of this agreement shall on the written request of one party served upon the other, be submitted to arbitration, and such arbitration shall comply with and be governed by the provisions of the Federal Arbitration Act (“FAA”) as it may be amended; Provided, that Arbitration shall be conducted in Marathon County, Wisconsin and be conducted by the American Arbitration Association (“AAA”).  The FAA rules shall apply, and the AAA rules shall apply if not in conflict with the FAA rules.  All evidence shall be subject to the Federal Rules of Civil Evidence.

	
20.  

	
Counterparts and Facsimile Signature.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same instrument.  Execution and delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature of a party hereto shall constitute a valid and binding execution and delivery of this Agreement by such party.  Such facsimile copies shall constitute enforceable original documents.

  

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EXHIBIT 10.10

AE BIOFUELS, INC.

 

TODD WALTZ EMPLOYMENT AGREEMENT

This Agreement is made by and between AE Biofuels, Inc. (the "Company") and Todd Waltz

 

("Employee") to be effective as of March 15, 2010 (the "Effective Date").

 

1.           Duties and Scope of Employment.

a.   Position; Employment Commencement Date; Duties.  Employee's employment with the Company pursuant to this Agreement is effective as of March 15, 2010 (the "Employment Commencement Date").  On and after the Employment Commencement Date, the Company shall employ the Employee as Executive Vice President and Chief Financial Officer reporting to the Chief Executive Officer of the Company.  During the Employment Term (as defined in section 2 herein), Employee shall render such business and professional services in the performance of his duties as are consistent with Employee's position within the Company, and as shall reasonably be assigned to him by the Chief Executive Officer.

b.   Obligations.  Except as otherwise agreed between the Chief Executive Officer and the employee, during the Employment Term, Employee shall devote his full business efforts and time to the Company.  Employee agrees during the Employment Term, not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Chief Executive Officer; provided, however, that Employee may serve in any capacity with any civic, educational or charitable organization.

2.           Employment Term. It is intended that the employment arrangement contemplated by this Agreement shall continue until the third anniversary of the Effective Date, with automatic one­ year extensions thereafter unless terminated by either party on sixty days notice prior to the end of each respective extension year (such three-year period and any extensions being referred to herein as the "Employment Term").  Notwithstanding the foregoing, the parties agree that neither this Agreement nor any provision herein is intended to guarantee the continuation of Employee's employment for the duration of the Employment Term.  In the event that Employee's  employment with the Company terminates prior to the expiration of the Employment Term for any reason, the parties agree that Employee shall be entitled to receive only those benefits that are expressly provided by this Agreement in such circumstances.

 

3.           Employee Benefits.  During the Employment Term, Employee shall be eligible to participate in the employee and fringe benefit plans maintained by the Company that are applicable to other employees of the Company to the full extent provided for under those plans for the position held by the Employee.

 

4.           Vacation.  During the Employment Term, Employee shall have three weeks of paid vacation per year.  In the event of termination, any unused vacation weeks shall be paid as salary continuation.

 

5.           Expenses.  While Employee is employed during the Employment Term, the Company will reimburse Employee for reasonable travel, entertainment or other expenses incurred by Employee in the furtherance of or in connection with the performance of Employee's duties hereunder, in accordance with the Company's expense reimbursement policy as in effect from time to time.

 

  

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6.           Compensation.

a.   Base Salary.  While employed by the Company, the Company shall pay the Employee as compensation for his services a base salary at the annualized rate of One Hundred Eighty Thousand ($180,000) per year (the "Base Salary").  Such salary shall be paid periodically in accordance with normal Company payroll practices and subject to required withholding. Employee's Base Salary shall be reviewed annually by the Company for possible adjustments in light of Employee's performance and competitive data.

b.   Bonus.  Employee shall be entitled to receive, within 90 days after the end of each year, an annual bonus (the "Bonus") of up to $50,000 based upon Employee's  performance and other criteria to be established by the Company.  Except as permitted under Section 7, Employee must be employed by the Company during the entire applicable bonus period for the payment of the Bonus.  With respect to any subjective milestones, the determination of whether Employee has attained the mutually agreed upon milestones for the Bonus shall be reasonably determined by the Employee's supervisor.

 

c.   Severance.

i.   Involuntary Termination Other Than for Cause; Constructive Termination.  If Employee's employment with the Company is Constructively Terminated or involuntarily terminated by the Company other than for Cause (as defined below), Employee's death, or Employee's Total Disability, then, subject to Employee executing and not revoking a standard form of mutual release of claims with the Company, Employee shall be entitled to receive continuing payments of severance pay (less applicable withholding taxes) at the rate equal to Employee's Base Salary, as then in effect, for a period of three (3) months from the date of such termination in accordance with the Company's  normal payroll practices.  In addition to the foregoing severance benefits, Employee shall receive at the Company's  expense 100% of Company-paid health, dental and vision insurance benefits at the same level of coverage as was provided to Employee immediately prior to the termination of Employee's employment with the Company ("Company­ Paid Coverage").  If such coverage included Employee's dependents immediately prior to Employee's termination, such dependents shall also be covered at the Company's  expense. Company-Paid Coverage shall continue until the earlier of (i) three (3) months following the date of the termination of Employee's  employment (the "Benefits Termination Date"), or (ii) the date upon which Employee or Employee's dependents become covered under another employer's  group health, dental and vision insurance benefit plans.

ii.   Involuntary Termination Other Than for Cause; Constructive Termination On or Following Change of Control.  If, on or following a Change of Control, Employee's employment with the Company is Constructively Terminated or involuntarily terminated by the Company other than for Cause, Employee's death, or Employee's Total Disability, then, subject to Employee executing and not revoking a standard form of mutual release of claims with the Company, in addition to the severance benefits set forth in Section 6d(i) above, all of Employee's stock options and restricted stock shall immediately accelerate vesting as to 100% ofthe then unvested shares.

 

  

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iii.   Cause Definition.  For the purposes of this Agreement, "Cause" means (1) Employee's  material, willful and continuing breach of his obligations to the Company after thirty (30) days written notice from the Company specifying the nature of Employee's breach and demanding that such breach be remedied (unless such breach by its nature cannot be cured, in which case notice and an opportunity to cure shall not be required); (2) Employee's  conviction of a felony that is injurious to the Company or its business; or (3) act or acts of dishonesty by Employee that are injurious to the Company or its business.

iv.   Constructive Termination Definition.  For the purposes of this Agreement, "Constructive Termination" means, without Employee's  written consent, (i) a material reduction in Employee's salary or benefits; provided, however, that a reduction in Employee's salary or benefits will not constitute a Constructive Termination if it is part of and proportional to a reduction in salary or benefits of the Company's  executive staff as a whole, (ii) a material diminution of Employee's officer title, duties, authority or responsibilities as in effect immediately prior to such diminution.

v.   Change of Control Definition.  For the purposes of this Agreement, "Change of Control" means, in one or a series of transactions: (1) a reorganization or merger of the Company with or into any other Company which will result in the Company's shareholders immediately prior to such transaction not holding, as a result of such transaction, at least 50% of the voting power of the surviving or continuing entity or the entity controlling the surviving or continuing entity; (2) a sale of all or substantially all of the assets of the Company which will result in the Company's shareholders immediately prior to such sale not holding, as a result of such sale, at least 50% of the voting power of the purchasing entity; (3) a change in the majority of the Board not approved by at least two-thirds of the Company's  directors in office prior to such change; or (4) the adoption of any plan of liquidation providing for the distribution of all or substantially all of the Company's  assets.  It is the intent of the Company to move into the public arena and such transaction, which may include the merger or acquisition of the Company, shall not constitute a Change of Control for purposes of this agreement.

 

vi.   Total Disability Definition.  For the purposes of this Agreement, "Total Disability" shall mean Employee's mental or physical impairment which has or is likely to prevent Employee from performing the responsibilities and duties of his position for three (3) months or more in the aggregate during any six (6) month period.  Any question as to the existence or extent of Employee's disability upon which the Employee and the Company cannot agree shall be resolved by a qualified independent physician who is an acknowledged expert in the area of the mental or physical impairment, selected in good faith by the Board and Employee (or his personal administrator).

vii.   No Mitigation.  Except as specifically provided herein, the Employee shall not be required to mitigate the value of any severance benefits contemplated by this Agreement, nor shall any such benefits be reduced by any earnings or benefits that the Employee may receive from any other source.

 

viii.   Voluntary Termination other than pursuant to a Constructive Termination; Involuntary Termination for Cause.  If, during the Employment Term, the Employee's employment is terminated by the Company for Cause, or by Employee for any reason, other than death, Total Disability or pursuant to a Constructive Termination, then all further vesting of any option, restricted stock award or other Company equity compensation held by Employee will cease immediately (however, Employee shall be permitted to exercise vested options for the time period specified in his option agreements and he shall retain all vested restricted shares) and all payments of compensation by the Company to Employee hereunder will terminate immediately (except as to amounts already earned).

 

  

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ix.   Involuntary Termination on Death.  If, during the Employment Term, the Employee's employment is terminated by the Company as a result of Employee's death, then 50% of unvested equity awards from the Company then held by Employee shall immediately vest, or if Employee is then holding unvested shares, the Company's right to repurchase the then-unvested shares under each such equity award shall lapse, with respect to 50% of the shares under each such award.

7.           Assignment.  This Agreement shall be binding upon and inure to the benefit of (a) the heirs, beneficiaries, executors and legal representatives of Employee upon Employee's death and (b) any successor of the Company.  Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes.  As used herein, "successor" shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

8.           Notices.  All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given if (i) delivered personally or by facsimile, (ii) one (1) day after being sent by Federal Express or a similar commercial overnight service, or (iii) three (3) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors in interest at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid:

 

a.   If to the Company: 

 

AE Biofuels, Inc.

20400 Stevens Creek Blvd., Suite 700

Cupertino, CA  95014

Fax:  (408) 213-0925 

 

b.  If to Employee:

 

Todd Waltz

P.O. Box 1445

Cupertino, CA  95015

 

or at the last residential address known by the Company.

 

  

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9.           Proprietary Information Agreement.  Employee agrees to enter into the Company's standard Employment, Confidential Information and Invention Assignment Agreement (the "Proprietary Information Agreement") upon commencing employment hereunder.

 

10.         Entire Agreement.  This Agreement, and the employee benefit plans referred to in Section 3 and the Proprietary Information Agreement represent the entire agreement and understanding between the Company and Employee concerning Employee's employment relationship with the Company, and supersede and replace any and all prior agreements and understandings concerning Employee's employment relationship with the Company.

 

11.         No Oral Modification, Cancellation or Discharge.  This Agreement may only be amended, canceled or discharged in writing signed by Employee and the Company's  Executive Chairman.

 

12.         Withholding.  The Company shall be entitled to withhold, or cause to be withheld, from payment any amount of withholding taxes required by law with respect to payments made to Employee in connection with his employment hereunder.

 

13.         Governing Law.  This Agreement shall be governed by the laws of the State of California without reference to rules relating to conflict of law. 

  

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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of March 15, 2010:

 

	
Date:  March 17, 2010

	
By: 

	/s/ Eric McAfee	 
	 	 	Eric McAfee	 

 

	 	EMPLOYEE	 
	 	 	 	 
	Date:  March 17, 2010	By:	

/s/ Todd Waltz

	 
	 	 	Todd Waltz	 

 

 

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