Document:

Exhibit 10.2 Employment Agreement

Exhibit 10.2

EMPLOYMENT AGREEMENT

THIS AGREEMENT made as of the 1 day of March, 2001.

BETWEEN:

	
	
	
LOCATE TECHNOLOGIES INC., a company duly incorporated pursuant to the laws of the Province of Alberta (hereinafter called the "Company")

	

 

	

OF THE FIRST PART

	

 

	

- and -

	
 

	

	
	

KEN SMELQUIST, an individual resident in the Province of Alberta, (hereinafter called the "Executive")

	

 

	
OF THE SECOND PART

	THIS AGREEMENT WITNESSETH that in consideration of the premises and of the covenants and agreements hereinafter contained, it is agreed by and between the parties as follows:

	1.       The Company will employ the Executive as Vice-President and the Executive will serve the Company in that capacity upon and subject to the terms and conditions herein contained.

	2.       The term of this Agreement shall be one (1) year commencing 1 March 2001 and ending at 5:00 p.m. on 1 March 2002 (the "Term"). The Term shall automatically renew for an additional one (1) year period on the same terms and conditions outlined herein, to maximum of three (3) renewal terms, unless, within ninety (90) days of the end of the Term (or any renewal thereof) either party provides notice that it does not desire to renew the Term.

	3.       The Executive shall during the Term perform those duties listed in Schedule A hereto and such other duties and directions as the Company shall from time to time assign to him (the "Duties"). During the Term, the Executive shall devote as much of his time and attention as may be required to carry out his Duties, and in any event a minimum of two hundred forty (240) days per year, and shall do all in his power to promote, develop and extend the business of the Company and its subsidiaries and related companies. The Company does acknowledge that the Executive is not devoting his full time and attention towards the Duties and the Company, however the parties do hereby agree that any other duties shall not interfere with the Duties and the Executive shall comply with all of the terms of this Agreement and specifically including sections 5, 6 and 7 hereof.

 

	4.       The salary of the Executive shall be Cdn. $75,000 per annum payable in twelve (12) equal installments payable on the last day of each month during the Term. In addition, the Executive shall be granted an option to acquire 1,000,000 common shares of the Company at a price of $.00001 per share pursuant to the terms and conditions of a stock option agreement in the form attached hereto as Schedule "B".

	5.       The Executive shall not, either during his employment hereunder or thereafter, except in the proper course of his Duties, or otherwise required by law, divulge to any person whomsoever, and shall use the Executive's best endeavors to prevent the publication or disclosure of:

	

 
	

(a) 
	

any confidential information concerning the business or finances of the Company or any other corporation for which he is directed to perform services hereunder or of any of their dealings, transactions or affairs which may come to the Executive's knowledge during or in the course of the Executive's employment; or

	

 
	

(b) 
	

any trade secrets, knowhow, inventions, technology, designs, methods, formula, processes, copyrights, trademarks, trademark applications, patents, patent applications or any other proprietary information and/or data of the Company (hereinafter collectively called "Intellectual Property").

	6.       The Executive agrees with the Company that he will not at any time during his employment or while receiving salary from the Company and for a period of two (2) years following termination of employment for whatever cause or the cessation of payments made under or in connection with this Agreement to the Executive, whichever is the later event, compete with the Company, directly or indirectly, anywhere within the Province of Alberta and whether:

	

 
	

(a) 
	

as a principal, partner or employee;

	

 
	

(b) 
	

as an officer, director or similar official of any incorporated or unincorporated entity engaged in any such business (the "Other" or "Another Entity"); 

	

 
	

(c) 
	

as a consultant or advisor to any Other Entity;

	

 
	

(d) 
	

as a holder of shares of any Other Entity in such number which, together with all shares of such Other Entity which are subject to an agreement to or which in fact vote (or otherwise act) in concert with the Executive, exercise effective control of any such Other Entity;

	

 
	

(e) 
	

by canvassing or soliciting orders or business for any Other Entity; or

	(D in any relationship described in subsections (i) through (v) of this section with any incorporated or unincorporated entity which provides services for or necessarily incidental to the business of Another Entity; without the prior express written consent of the Company.

 

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	7.       The Executive acknowledges and agrees that the duration and area within which the aforesaid covenant shall apply have been considered by the Executive who has taken independent legal advice with respect thereto and the restraint and restriction of and on the future activities of the Executive are reasonable in the circumstances.

	8.       In the event that:

	

 
	

(a)
	

the Executive's employment is terminated for cause (as herein defined), the Company has the option to immediately terminate this Agreement, provided that notwithstanding such termination of this Agreement, the Executive shall not be relieved of his obligations under paragraphs 5 and 6 hereof, which obligations shall continue as provided in said paragraphs;

	

 
	

(b)
	

the Executive voluntarily resigns from the Company, he shall give, unless the Company decides that a shorter period of notice is more appropriate, two (2) months prior notice. After the expiry of such notice period, all obligations (except for the obligations of the Executive under paragraphs 5 and 6 hereof which shall continue as provided in said paragraphs) of the Company and the Executive under this Agreement shall cease;

	

 
	

(c)
	

the Executive dies or becomes physically or mentally disabled and therefore unable to perform his responsibilities, all obligations of the Company under this Agreement shall cease, in the case of death, immediately upon death and, in the case of physical or mental illness, sixty (60) days after such condition has first been determined;

	

 
	

(d)
	

the Executive is a director of the Company or of any subsidiary or related company of the Company, upon termination of this Agreement the Executive agrees to and shall and hereby resigns as a director and officer of the Company and of any subsidiary or related company of the Company;

	

 
	

(e)
	

the Executive resigns, retires or otherwise has his employment terminated, the Executive hereby authorizes the Company or any related company to set off against and deduct from all or any amounts owing to the Executive by the Company or any related company, any amounts owed by the Executive to the Company or any subsidiary or related company of the Company on any account whatsoever.

	9.       If the employment of the Executive is terminated for cause, the Executive agrees that the Company shall not be responsible for any salary in lieu of notice or damages after the date of termination.

	10.       The term "for cause" shall mean any one or more of the following:

	

 
	

(a)
	

a significant breach or failure or a continuing breach or failure to observe any of the provisions herein;

	

 
	

(b)
	

the bankruptcy of the Executive;

 

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(c)
	

any act of dishonesty detrimental to the well-being of the Company;

	

 
	

(d) 
	

any act of gross negligence relating to performance of assigned responsibility;

	

 
	

(e)
	

the commission of an indictable offense for which the Executive is convicted, which significantly impairs the Executive's ability to perform his Duties and responsibilities hereunder or which materially adversely affects the reputation enjoyed by the Company;

	

 
	

(f)
	

failure to comply with reasonable instructions, orders and directions of the board of directors of the Company.

	11.       If the Executive contributes to any invention (whether patentable, patented or not) any Intellectual Property, or any improvement or modification to any invention or Intellectual Property, then the Executive's contribution thereto and the invention, Intellectual Property, or improvement thereof shall, without more, be the exclusive property of the Company. The Executive shall execute and all agreements, assurances or assignments which the Company may require and the Executive shall fully cooperate with the Company in the filing and prosecution of any patent applications.

	12.       This Agreement supersedes all previous written, verbal or implied terms, conditions and representations relating to the Executive's employment.

	13.       The failure of either party at any time to require strict performance by the other party of any provision hereof shall in no way affect the full right to require such performance at any time thereafter. Neither shall the waiver by either party of a breach of any provision hereof be taken or held to be a waiver of any succeeding breach of such provision or as a waiver of the provision itself.

	14.       Each paragraph, clause, sub-clause and provision of this Agreement shall be severable from each other and if for any reason any paragraph, clause, sub-clause or provision is invalid or unenforceable, such invalidity or unenforceability shall not prejudice or in any way affect the validity or enforceability of any other paragraph, clause, sub-clause or provision. This Agreement and each paragraph, clause, sub-clause and provision hereof shall be read and construed so as to give thereto the full effect thereof subject only to any contrary provision of the law to the intent that where this Agreement or any paragraph, clause, subclause or provision hereof would but for the provisions of this paragraph have been read and construed as being void or ineffective, it shall nevertheless be a valid agreement, paragraph, clause, sub-clause or provision, as the case may be, to the full extent to which it is not contrary to any provision of the law.

	15.       This Agreement shall be construed and take effect in all respects in accordance with the laws for the time being in force in the Province of Alberta. The parties hereto submit to the non-exclusive jurisdiction of the Courts of Alberta in respect of any matter or thing arising out of this Agreement or pursuant thereto.

	16.       All notices to be given by either party hereto shall be personally delivered or delivered by fax to the following address or such other address as may be notified by either party.

 

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	17.       If to the Company to:

	
	

Locate Technologies Inc.

	

 
	

3124 Parsons Road

	

 
	

Edmonton, AB THAN 1 L6

	

 

	

 
	

Attention: Lorne Drever

	

 
	

Phone: (780) 408-2569 ext. 301

	

 
	

Fax: (780) 437-8173

	

 

	

with a copy to:

	

 

	

 
	

Bryan & Company

	

 
	

Barristers & Solicitors

	

 
	

2600, 10180 - 101 Street

	

 
	

Edmonton, Alberta T5J 3Y2

	

 

	

 
	

Attention: Kimberley D. Silverberg

	

 
	

Phone: (780) 421-4711

	

 
	

Fax: (780) 428-6324

	18.If to the Executive to:

	

 
	

Ken Smelquist

	

 
	

3124 Parsons Road

	

 
	

Edmonton, AB T6N 1 L6

	

 

	

 
	

Phone: (780) 408-2569 ext. 306

	

 
	

Fax: (780) 437-8173

 

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IN WITNESS WHEREOF the Company has caused this Agreement to be executed by its duly authorized officers and its corporate seal to be affixed  hereto and the Executive has affixed his hand and seal personally.

	

LOCATE TECHNOLOGIES INC.

	

 

	

Per: /s/ Lorne Drever

	

Per: ____________________

	

 

	

SIGNED, SEALED AND DELIVERED 
	

 
	

)
	

 

	

in the presence of:
	

 
	

 
	

 
	

 
	

)
	

 

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

)
	

 

	

Witness
	

 
	

 
	

 
	

 
	

 
	

)
	

/s/ Ken Smelquist

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

) 
	

KEN SMELQUIST

 

 

 

 

 

 

 

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SCHEDULE A - Duties and Responsibilities

	

 
	

1. 
	

Oversee the technological operations of the Company including product design and development as well as design manufacturing.

	

 

	

 
	

2. 
	

Assist employees as required.

	

 

	

 
	

3. 
	

Hire and supervise production staff, contract manufactures, and various vendors.

	

 

	

 
	

4. 
	

Create and nurture relationships with potential alliance partners and/or vendors.

	

 

	

 
	

5. 
	

Look for opportunities for potential business expansion relating to the new development of technology and/or the acquisition thereof from a third party.

	

 

	

 
	

6. 
	

Monitor and advise on the product demands from clients and review the available technology from competitors.

	

 

	

 
	

7. 
	

Other related duties as assigned by the President and/or the Board of Directors.

 

 

 

 

 

 - 7 -Exhibit 10.3

Exhibit 10.3

THIS AGREEMENT made this 1 st of June, 2001

BETWEEN:

	
OPTIMUM INSTRUMENTS INC.

	
a Corporation incorporated pursuant to the laws of

	
Alberta, having its registered office in the City of

	
Edmonton, in the Province of Alberta (hereinafter referred to as "Licensor")

	
 

	
OF THE FIRST PART

	
-and

	
 

	
LOCATE TECHNOLOGIES INC.

	
a Corporation incorporated pursuant to the laws of

	
Alberta, having its registered office in the City of

	

Edmonton, in the Province of Alberta (hereinafter referred to as "Licencee")

	

 

	

OF THE SECOND PART

	

 

	

- and -

	

 

	

KEN SMELQUIST

	

an individual residing in the City of

	

Edmonton, in the Province of Alberta

	

(hereinafter referred to as "Smelquist")

 

 

 

WHEREAS:

A.       Licensor is the legal and beneficial owner of Firmware known as "Aspire Interface" (as defined in paragraph 1.1 below and hereinafter referred to as "the Firmware") and possesses Technical Information (as defined in paragraph 1.2 below) sufficient to manufacture the Firmware.

B.       The Licensor and Licencee wish to enter into this Agreement to set out the terms and conditions upon which the Licensor agrees to grant a licence to the Licencee for the use of Firmware.

NOW THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the parties hereto agree: 

ARTICLE I - Definitions 

For the purpose of this Agreement:

1.1       The term "Firmware" is the technology and products more particularly described in Schedule "A" attached hereto;

1.2       The term "Technical Information" will mean technical information and know-how developed and acquired by the Licensor in the development of the Firmware;

ARTICLE 2 - Licensor's Representations and Warranties

Licensor hereby represents and warrants that:

2.1       Licensor has Technical Information sufficient to manufacture the Firmware;

2.2       Licensor is the sole legal and beneficial owner of the Firmware; and

2.3       Licensor has the full right and power to grant to Licensee an exclusive license to manufacture the Firmware as provided in this Agreement.

ARTICLE 3 - License

3.1       Subject to the terms and conditions in this Agreement, the Licensor hereby grants to Licensee, during the Term (as hereinafter defined), the exclusive worldwide right and license to manufacture, use, market and sell the Firmware together with any and all products and services derived therefrom.

3.2       The license hereby granted includes the right to sublicense others without those others having any right to grant further sublicense Any sublicense will be subject to all the terms and conditions of this Agreement. Licensee shall require any sublicensee to observe the terms and conditions of this Agreement in order to protect all the rights of Licensor hereunder, and Licensor's proprietary interest in the Firmware and the Technical Information. Any sublicense will terminate contemporaneously with any termination of this Agreement.

 

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ARTICLE 4 - Licensor's Obligations and Licencee's Confidentiality Obligation

4.1       Following the execution of this Agreement, Licensor will furnish to Licensee, in confidence, one complete, up-to-date set of reproducible drawings of the Firmware, its construction, specifications, and all presently known necessary Technical Information and engineering and technical know-how with respect to the design, manufacture, and operation of the Firmware including:

	

 
	

a) 
	

Licensor agrees that it will consent to, and accommodate the provision of consulting services to the Licensee by its employee Smelquist on a non exclusive basis in order to assist the Licensee in it development and manufacture its products; and

	

 
	

b) 
	

Licensee will (and will cause all of the sublicenses to) keep all Technical Information relating to the Firmware, whether furnished to it by Licensor or developed, or in any way acquired by it in connection with the manufacture of the Firmware strictly confidential. Licensee will only communicate the Technical Information in accordance with the terms of this Agreement to others, during the life of this Agreement. Licensee, on termination of this Agreement, by lapse of time or otherwise, will continue to keep confidential all Technical Information and will return to Licensor all Technical Information and all copies thereof under its control and under the control of its sublicensees. Licensee, upon any termination, will discontinue the use of all Technical Information and will cause its sublicensees to discontinue that use, except for its right to dispose of inventory.

ARTICLE 5 - Cross Licensing of Improvements, Modifications and Inventions

Licensor will inform Licensee, promptly and in writing, with respect to all changes, improvements, modifications, and inventions which it discovers. All of these changes, improvements, modifications and inventions will constitute Technical Information and will be governed by all the terms of this Agreement, including termination provisions, without the payment of any additional royalty or other royalty or other sums by Licensee.

ARTICLE 6 - Royalty Payments

6.1       In consideration of this Licence, the Licensee shall cause to be allotted to the Licensor TWO MILLION (2,000,000) Common Shares of the Licensor which shall be issued and transferred to the Licensor at the following times and in the following amounts:

	

 
	

 
	

Amount

	

 
	

Time

	
	

 
	

1,000,000
	

 
	

Upon the Execution of this Agreement

	

 
	

 
	

250,000
	

 
	

Three (3) Months from the date of Execution

	

 
	

 
	

250,000
	

 
	

Six (6) Months from the date of Execution

	

 
	

 
	

250,000
	

 
	

Nine (9) Months from the date of Execution

	

 
	

 
	

250,000
	

 
	

Twelve (12) Months from the date of Execution

 

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The Shares shall be free from any contractual trading restrictions. The Licencee does hereby represent and warrant that it is a company wholly owned by Smelquist, a close friend and business associate of Lorne Drever, a promoter of the Licencee.

ARTICLE 7 - Firmware Loading

The Licensee acknowledges and understands that this Licence does not include the specialized source electronic codes necessary to activate and continue the functions of the Firmware. The Licensor confirms and agrees that, provided that the Licensee is not in default of this Agreement that it will provide to the Licensee a "loading service" at the Licensors facility at Edmonton, Alberta at no additional cost to the Licensee.

ARTICLE 8 - Duration and Termination of Agreement

8.1       The term of this Agreement will commence on the date of execution of this Agreement and, except as otherwise provided in this Agreement, will continue until March 31 st, 2006 (the "Term").

8.2       Either party can terminate this Agreement by giving the other party at least Thirty (30) days written notice of termination, in the event that any breach or default is made by said other party in observance or performance of any one or more of the provisions made hereof, provided, however, that if the party charged with a breach, within that Thirty (30) day period, remedies the breach or default upon which that notice is based, then that notice will not become effective, but this Agreement will remain in full force and effect.

8.3       In the event that proceedings are commenced relating to the bankruptcy or winding up of Licensee's business, or Licensee makes a general assignment of the benefit of creditors, or it determined to be insolvent, or a receiver is appointed for its assets, then, and in any of those events, this Agreement will, ipso facto terminate.

ARTICLE 9 - Rights Accruing Prior to Expiration of Agreement

No rights or obligations accruing prior to the expiration of any termination of this Agreement will be affected by expiration and termination. Licensee will be required thereafter to pay royalties to Licensor as above provided on the sale of Aspire Products prior to expiration or termination.

ARTICLE 10 - Contingencies Beyond Control of Parties

This Agreement and the performance of both parties hereunder are subject to all contingencies beyond their respective control including, but not limited to, force majeure, strikes, labour disputes, flood, civil commotion, war, riot, acts of God, rules, laws, orders, acts, regulations, or restrictions of any government or any agency or subdivision thereof, casualties, fire accidents, or other casualty or contingency beyond the control of either party, or otherwise unavoidable.

 

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ARTICLE 11 -Waivers and Their Effect

The, waiver by either part of the breach of any term or condition of this Agreement by the other will not constitute a waiver of any subsequent breach thereof or nullify the effectiveness of that term or condition.

ARTICLE 12 - Notices

12.1       Any notice required or permitted to be given under this Agreement will be in writing and will be given by registered or certified air mail, directed by one party to the other at its address set forth below or other address as that party may hereafter designate in writing: 

	

 
	

a) 
	

If to the Licencor: 

	

 
	

 
	

 
	

Optimum Instruments Inc.

	

 
	

 
	

 
	

201, 3124 Parsons Road 

	

 
	

 
	

 
	

EDMONTON, AB T6N 1 L6

	

 
	

 
	

 
	

Attention : Ken Smequist

	

 
	

 
	

 
	

Phone: 780.450.0591 

	

 

	

 
	

b) 
	

If to the Licencee: 

	

 
	

 
	

 
	

Locate Technologies 

	

 
	

 
	

 
	

3124 Parsons Road 

	

 
	

 
	

 
	

EDMONTON, AB T6N I L6 

	

 
	

 
	

 
	

Attention: Lorne Drever 

	

 
	

 
	

 
	

Phone: 780.408.2569 x.301

	

 

	

 
	

 
	

 
	

with a copy to:

	

 
	

 
	

 
	

Bryan & Company

	

 
	

 
	

 
	

Barristers & Solicitors

	

 
	

 
	

 
	

2600,10180 -101 Street

	

 
	

 
	

 
	

Edmonton, Alberta T5J 3Y2

 

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Attention: Kimberley D. Silverberg

	
	
	
	

Phone: (780) 421-4711

	

 
	

 
	

 
	

Fax:
	

(780) 428-6324

	

 

	

 
	

c)
	

If to Smelquist:

	

 
	

 
	

 
	

Ken Smelquist Private & 

	

 
	

 
	

 
	

Confidential

	

 
	

 
	

 
	

C/O Optimum Instruments Inc.

	

 
	

 
	

 
	

As above.

ARTICLE 13 - Governing Law

This Agreement is entered into and will be constituted and enforced in accordance with the laws of the Province of Alberta.

ARTICLE 14 -Assignment

This Agreement and all rights accruing hereunder cannot be assigned by either party or by operation of law without the written consent of the other except that the Licensor shall be entitled to assign this Agreement to a corporation controlled by the Licensor without the consent of the Licensee. This Agreement will enure to the benefit of the parties hereto and their respective successors and permitted assigns.

ARTICLE 15 - Entire Agreement

This Agreement constitutes the entire agreement between the parties hereto relating to the subject matter hereof and supersedes all prior agreements, whether oral or written. It can be executed in several counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. It cannot be changed, amended or modified in any respect unless in writing signed by both parties hereto.

ARTICLE 16 - Paragraph Headings

Paragraph titles or captions contained in this Agreement are inserted only as a matter of convenience and for reference. They in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision thereof.

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

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

OPTIMUM INSTRUMENTS INC.

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

Per: /s/ Ken Smelquist

	

 

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

LOCATE TECHNOLOGIES INC.

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

Per: /s/ Lorne Drever

	

 

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

/s/ Ken Smelquist

	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

 
	

KEN SMELQUIST

 

 

 

 

 

 

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SCHEDULE "A"

1.       Firmware shall be described as but not limited to:

	

 
	

 
	

a. 
	

software that provides functionality to the Aspire series of products without consideration of meter manufacturer, Itron, or any other third party, and;

	

 

	

 
	

 
	

b.
	

product design that allows for a fully functional Aspire product that satisfies the needs of LTI's client(s).

 

 

 

 

 

 

 

 

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