Document:

Unassociated Document

Exhibit 10.18

 

PERFORMANCE AGREEMENT

 

This Performance Agreement (the “Agreement”) is made as of this 11TH day of December, 2012, by and among DS Healhcare Group Inc., a Florida corporation (“DSKX”) and Fernando Tamez Gutierrez (“Fernando Tamez”, Fernando Tamez and DSKX are jointly referred to as the “Parties”).

 

RECITALS

 

A.           DSKX and Fernando Tamez entered into a Share Exchange Agreement on October 31, 2012.

 

B.           Divine Skin Laboratories, S.A. de C.V., a 99% owned subsidiary of DSKX (DMEXICO) and Fernando Tamez entered into an Employment Agreement on November 15, 2012.

 

C.           The parties wish to enter into this Performance Agreement.

 

Now, therefore, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties herby make, adopt and approve this Agreement and prescribe the terms and conditions as follows:

 

Article I.

Issuance of DSKX Shares

 

Section 1.1        Issuance of DSKX Shares. For a period of five calendar years commencing on October 31, 2012, provided Fernando Tamez shall remain employed by DMEXICO and/or remain a board member of DMEXICO, on each anniversary date he shall receive for each such year such number of DSKX shares that shall have a cumulative value of USD$50,000.00 (fifty thousand dollars, legal currency of the United States of America).

 

Section 1.2        Determination of Share Value. For purposes of Section 1.1, the value of the DSKX shares shall be the bid price on the last trading day of the month of October in the corresponding calendar year.

 

Section 1.3        Delivery of DSKX shares. DSKX shall deliver the DSKX shares equivalent to USD$50,000.00 (fifty thousand dollars, legal currency of the United States of America) on the immediate business day after October 31 on each of the five calendar years set forth in Section 1.1 above. If a Change of Control (as defined below) occurs before the fifth year anniversary then Fernando Tamez shall be entitled to receive the number of DSKX shares equivalent to USD$50,000.00 (fifty thousand dollars, legal currency of the United States of America) per each remaining year until the fifth year anniversary. Said shares shall be delivered on the same date as the Change of Control occurs.

 

  

  

  

 

Article II.

Profit Participation

 

Section 2.1        Profit Participation. For so long as Fernando Tamez shall remain employed by DMEXICO and/or remain a board member of DMEXICO, he shall be entitled, on a calendar year basis, to 30% of the net profits of DMexico (“Profit Participation”).

 

Section 2.2        Definition of Net Profits. For purposes of Section 2.1, net profits shall be defined as total revenue minus expenses, costs and taxes; and shall be computed by the DSKX independent auditors and duly confirmed by DMEXICO ́s statutory examiner. In case of discrepancy between the number provided by the DSKX independent auditors and DMEXICO ́s statutory examiner, the parties shall appoint a third party accountant who will resolve the controversy and whose final calculation shall be binding to both parties.

 

Section 2.3        Buy Out. Commencing on the third calendar anniversary of the execution of this Agreement, DSKX shall have the option of “buying back” the Profit Participation for and amount of  USD$500,000 (five hundred thousand dollars, legal currency of the United States of America). (“Buy Back Option”).

 

Section 2.4        Notice and Payment. To exercise the Buy Back Option, DSKX shall give written notice to Fernando Tamez and shall pay USD$500,000 (five hundred thousand dollars, legal currency of the United States of America) to Fernando Tamez within 30 days of such written notice.

 

The payment shall occur via wire transfer to the bank account designated by Fernando Tamez upon receipt of the notice to exercise the Buy Back Option. Said transfer shall be made with immediately available funds, and any and all charges deriving from the transfer shall be fully paid by DSKX.

 

Article III.

Change of Control

 

Section 3.1        Change of Control. In the event that a “Change of Control”, as hereinafter defined, shall occur at any time during the term of Fernando Tamez’ employment with DMEXICO or extensions thereof and/or during the term in which Fernando Tamez holds a seat in the board of directors of DMEXICO, Fernando Tamez shall have the right to receive the consideration set forth in Section 3.2

 

For purposes of this Agreement, a “Change of Control” of DSKX shall be deemed to have occurred at such time as:

 

(a)       any person becomes the beneficial owner, directly or indirectly, of securities of the Company representing eighty percent (80%) or more of the combined voting power of DSKX ́s outstanding securities then having the right to vote at elections of directors; or

 

  

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(b)       any person becomes the beneficial owner, directly or indirectly of, either: (i) 50% of DMexico ́s outstanding shares or (ii) 30% of DMexico ́s shares, within a period of one year; or

 

(c)       the board of directors of DMexico is changed in its majority; or

 

(d)      forty percent (40%) of the gross value of DMexico ́s assets is transferred to an unrelated party.

 

Section 3.2        Consideration. The consideration to be paid to Fernando Tamez upon a Change of Control shall be USD$500,000 (five hundred thousand dollars, legal currency of the United States of America). The payment shall occur on the same date in which the Change of Control occurs and its shall be made via wire transfer of immediately available funds to the bank account designated by Fernando Tamez. Any expenses derived from said transfer shall be borne by DSKX.

 

Article IV.

MISCELLANEOUS

 

Section 4.1        Notices.  All notices, requests, and other communications shall be deemed to be duly given if sent by confirmed facsimile transmission, email or receipted overnight courier addressed to the other party at the address as set forth below:

 

If to DSKX:                                           DS Healtcare Group, Inc.

1680 Meridian, Suite 301,

Miami Beach, Florida 33139

Attn:  Daniel Khesin

Email: daniel@dslaboratories.com

If to Fernando Tamez                          c/o Divine Skin Laboratories, S.A. de C.V.

Cafetales 1747 Haciendas de Coyoacan 04970

Mexico City. Mexico

Attn:  Fernando Tamez

Email:  Fernando@dslaboratories.com

Section 4.2        Binding Effect.  Except as may be otherwise provided herein, this Agreement will be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any of the rights or obligations hereunder shall be assigned by any of the Parties hereto without the prior written consent of the other Parties.  Except as otherwise specifically provided in this Agreement, nothing in this Agreement is intended or will be construed to confer on any person other than the Parties hereto any rights or benefits hereunder.

 

Section 4.3        Headings.  The headings in this Agreement are intended solely for convenience of reference and will be given no effect in the construction or interpretation of this Agreement.

 

Section 4.4        Counterparts.  This Agreement may be executed in multiple counterparts, each of which will be deemed an original, and all of which together will constitute one and the same document. Any signature page delivered by a fax machine, telecopy machine or electronic mail shall be binding to the same extent as an original signature page, with regard to any agreement subject to the terms hereof or any amendment thereto. Any party who delivers such a signature page agrees to later deliver an original signed counterpart to any party which requests it.

 

  

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Section 4.5        Governing Law.  This Agreement will be governed by the laws of Florida without regard to conflict of laws principles thereof. Each of the parties hereto irrevocably consents to the exclusive jurisdiction of any court located within Miami Dade County, Florida in connection with any matter based upon or arising out of this Agreement or the matters contemplated herein, agrees that process may be served upon them in any manner authorized by the laws of the State of Florida for such persons and waives and covenants not to assert or plead any objection which they might otherwise have to such jurisdiction and such process.

 

Section 4.6        Prevailing Party.  If any action at law or in equity is necessary to enforce or interpret the terms of the Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

 

Section 4.7        Waivers.  Compliance with the provisions of this Agreement may be waived only by a written instrument specifically referring to this Agreement and signed by the party waiving compliance. No course of dealing, nor any failure or delay in exercising any right, will be construed as a waiver, and no single or partial exercise of a right will preclude any other or further exercise of that or any other right.

 

Section 4.8        Pronouns.  The use of a particular pronoun herein will not be restrictive as to gender or number but will be interpreted in all cases as the context may require.

 

Section 4.9        Joint Drafting.  This Agreement shall be deemed to have been drafted jointly by the Parties hereto, and no inference or interpretation against any Party shall be made solely by virtue of such Party allegedly having been the draftsperson of this Agreement.

 

Section 4.10      Time Periods.  Any action required hereunder to be taken within a certain number of days will be taken within that number of calendar days unless otherwise provided; provided, however, that if the last day for taking such action falls on a weekend or a holiday, the period during which such action may be taken will be automatically extended to the next business day.

 

Section 4.11      Modification.  No supplement, modification or amendment of this Agreement will be binding unless made in a written instrument that is signed by all of the Parties hereto and that specifically refers to this Agreement.

 

Section 4.12      Dollars.  Under the provisions of this Agreement “Dollars”, “dollars” and “$” shall mean dollars in lawful currency of the United States of America.

 

Section 4.13      Severability.  If any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected thereby.  To the extent permitted by applicable law, each party waives any provision of law, which renders any provision of this Agreement invalid, illegal or unenforceable in any respect.

 

  

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Section 4.14      Entire Agreement.  This Agreement and the agreements and documents referred to in this Agreement or delivered hereunder are the exclusive statement of the agreement among the Parties concerning the subject matter hereof.  All negotiations among the Parties are merged into this Agreement, and there are no representations, warranties, covenants, understandings, or agreements, oral or otherwise, in relation thereto among the Parties other than those incorporated herein and to be delivered hereunder.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective duly authorized officers as of the date first written.

 

	 	DS Healthcare Group, Inc. 

a Florida corporation

	 
	 	 	 	 
	 	
By: 

	/s/ Daniel Khesin	 
	 	
Daniel Khesin

	 
	 	
Chief Executive Officer

	 
	 	 	 
	 	 	 
	 	/s/ Fernando Tamez Gutierrez	 
	 	Fernando Tamez Gutierrez	 

 

 

 

 

 

6BRCD-8K - 2013-01-14 EX 10.1

Exhibit 10.1

PRIVATE & CONFIDENTIAL

December 20, 2012        

Mr. Lloyd Carney
[Address]

Dear Lloyd,

It gives me great pleasure to present to you this formal offer of employment as the Chief Executive Officer (CEO) at Brocade Communications Systems, Inc. (“Brocade” or the “company”). In this capacity you would be the senior member of the Brocade Management Team and would report to the Board of Directors.

Effective your first date of employment, the company will appoint you to the Board of Directors.  Upon your termination of employment for any reason, unless otherwise requested by the Board of Directors, you will be deemed to have resigned from the Board of Directors (and all other positions held at Brocade or any affiliate) without any further required action by you and, at the request of the Board of Directors, you agree to execute any documents necessary to reflect this resignation.  During the term of your employment, you shall devote your full business efforts and time to Brocade.  

This offer will remain in effect until December 21, 2012. You will be expected to begin work on January 14, 2013.

Your starting base salary will be $800,000 annually. Your base salary shall be subject to annual review by the Board of Directors.  

In addition to your base salary, you will be eligible for incentive compensation in the form of a target bonus of $1,200,000 every 12 months under Brocade's Senior Leadership Plan, or the applicable successor incentive plan thereto.  You and the Board of Directors will determine your individual bonus program, including goals and metrics, within 60 days of your start.  For Brocade's 2013 fiscal year, your bonus amount will be pro-rated based on the number of days between your start date and the end of fiscal 2013, but in no event will your bonus for fiscal 2013 be less than $600,000 if you are employed with Brocade through the end of the fiscal year. Your target bonus shall be subject to annual review by the Board of Directors.

Brocade Communications Systems, Inc., 130 Holger Way, San Jose, CA 95134, USA
Tel: +1 408-333-8000 Fax: +1 408-333-8101

	
		
	Mr. Lloyd Carney
	December 20, 2012

	 
	Page 2

In addition to the compensation noted above, subject to approval of the Board of Directors, Brocade will grant to you a nonstatutory stock option to purchase 2,400,000 common shares of Brocade (the “Option”). The Option will be subject to a one-year cliff vesting event, 25% of your options will vest on your first anniversary of your start date, and 1/48 of the shares subject to the Option will vest each month thereafter on the same day of the month as your start date (and if there is no corresponding day, on the last day of the month), subject to your continuing to provide services to Brocade through each such vesting date and subject to any accelerated vesting provisions and other applicable terms set forth in your Change of Control Agreement (as defined below).

In addition to the compensation mentioned above, subject to approval by the Board of Directors, Brocade will grant to you Restricted Stock Units (RSUs) in the amount of 230,000 common shares of Brocade stock. These shares will vest over three years with one third vesting one year after they are granted, one third vesting two years after they are granted and the final one third vesting three years after they are granted, subject to your continuing to provide services to Brocade through each such vesting date and subject to any accelerated vesting provisions and other applicable terms set forth in your Change of Control Agreement.  

If you are no longer employed by or serving the company, the Option and RSUs will cease to vest, subject to any accelerated vesting provisions and other applicable terms set forth in your Change of Control Agreement.  Following your termination of employment, under the Option you will be entitled to purchase only those shares that have vested as of your last day of service (including any shares that vest in connection with your employment termination or that, in the Change of Control context, are eligible to vest following your last day of service). You will generally have 3 months (or 12 months in the case of death, disability, or as otherwise set forth in your Change of Control Agreement) from the date that you no longer are in service with the company to exercise the Option.  The exercise price per share of the Option will be the fair market value of common stock of Brocade as of the date of grant as determined by the Board of Directors. Brocade intends to grant the Option and the RSUs two business days after your announcement as CEO.  The grants otherwise will be subject to Brocade's standard terms and conditions as reflected in the applicable form of award agreement.
 
As a Brocade employee, you will be eligible for a benefits package that Brocade offers to all of its full-time employees beginning on your start date, including paid vacation.  As CEO you are eligible for three weeks of vacation with the company annually.

In connection with your acceptance of this letter, you will be eligible for severance and change of control benefits under Brocade's standard form of Change of Control Retention Agreement (the “Change of Control Agreement”) for members of the Brocade Management Team.  Your benefits under the Change of Control Agreement will be at the CEO level.

Brocade Communications Systems, Inc., 130 Holger Way, San Jose, CA 95134, USA
Tel: +1 408-333-8000 Fax: +1 408-333-8101

	
		
	Mr. Lloyd Carney
	December 20, 2012

	 
	Page 3

If you accept this offer, your employment with Brocade shall be “at-will.”  This means that it is not for any specified period of time and can be terminated by you or by Brocade at any time, with or without advance notice, for any or no particular reason or cause, and with or without cause.  This “at-will” nature of your employment shall remain unchanged during your tenure as an employee, and may only be changed by an express writing authorized by the Board of Directors. 
As a condition of employment, you will be required to execute and comply with Brocade's Employment, Confidential Information, Invention Assignment and Arbitration Agreement (the “Confidentiality Agreement”).  As a Brocade employee, you will be expected to follow Brocade's policies and procedures.
We also ask that, if you have not already done so, you disclose to Brocade any and all agreements relating to your prior employment that may affect your eligibility to be employed by Brocade or limit the manner in which you may be employed. It is Brocade's understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case.  Moreover, you agree that, during the term of your employment with the company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which Brocade is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the company. 
This offer is made to you based solely on your education, skills, and qualifications, and not to obtain improper access to trade secrets or proprietary information belonging to any current or former employer.  In connection with your employment by Brocade, you are to abide by all contractual obligations owed to former employers, including obligations respecting trade secrets and proprietary information.  You have assured me, and it is our mutual understanding, that your acceptance of the offer set forth in this letter, and subsequent employment by Brocade, will not breach any duty or obligation that you may have to any person or entity. 
This offer letter is intended to be exempt from, or comply with, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended and the final Treasury Regulations and official IRS guidance thereunder (collectively, “Section 409A”) so that none of the payments and benefits to be provided hereunder will be subject to the additional tax imposed by Section 409A, and any ambiguities or ambiguous terms will be interpreted to so be exempt or comply.  You and Brocade agree to work together in good faith to consider amendments to this offer letter and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A.
For purposes of federal immigration law, you will be required to provide to the company documentary evidence of your identity and eligibility for employment in the United States.  Such documentation must be provided to us within three (3) business days of your start date, or our employment relationship with you may be terminated.

Brocade Communications Systems, Inc., 130 Holger Way, San Jose, CA 95134, USA
Tel: +1 408-333-8000 Fax: +1 408-333-8101

	
		
	Mr. Lloyd Carney
	December 20, 2012

	 
	Page 4

The terms and conditions set forth in this offer letter, the Confidentiality Agreement and the Change of Control Agreement as accepted by you will be the entire agreement between Brocade and you with regard to your employment and supersede any other agreements, understandings or representations, whether written or oral with regard to the subject of your employment.  The legal name of the employer is Brocade Communications Systems Inc.  This agreement and any additions or amendments thereto shall be governed in accordance with the laws of the State of California.

This offer is contingent on the results of a background check currently being run by Brocade and our recruiter.  The Compensation Committee of the Board of Directors will inform you no later than December 27, 2012, if there are any issues from the background check that require further discussion.

If you wish to discuss any of the details of these conditions or any aspect of your employment, please contact me at (408) 497-4499.  I am enclosing a copy of this letter for your personal records and would appreciate your returning the original to me with your signature of acceptance.

Sincerely,

/s/ David L. House        
Mr. David L. House
Chairman
Brocade Communications Systems, Inc.

ACKNOWLEDGED, ACCEPTED AND AGREED:

/s/ Lloyd Carney            
Mr. Lloyd Carney
            
Date: December 21, 2012

Brocade Communications Systems, Inc., 130 Holger Way, San Jose, CA 95134, USA
Tel: +1 408-333-8000 Fax: +1 408-333-8101

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