Document:

Unassociated Document

Exhibit 10.1

SEPARATION AGREEMENT

This Separation Agreement (this “Agreement”) is made by and between Standard Gold, Inc. (the “Company”) and Stephen E. Flechner (“Employee”), collectively referred to as the “Parties.”

 

BACKGROUND

 

A.           Employee’s employment with the Company ended effective May 19, 2011 (the “Termination Date”).

 

B.           To amicably resolve any and all disputes between them as of the Termination Date, the Parties desire to enter into this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, based on the facts stated above, and the terms and conditions below, Employee and the Company hereby agree as follows.

 

1.           The Company’s Promises.  In exchange for “Employee’s Promises” (defined in Paragraph 2 below), the Company has promised to do the following (“the Company’s Promises”), but only if Employee does not exercise Employee’s right to revoke or rescind this Agreement as explained below in Paragraph 5:

 

(a)           Cash Payments.  The Company acknowledges and agrees that it will pay to Employee cash in the following amounts and pursuant to the following terms:

 

(i)           For amounts previously advanced to the Company by Employee, the Company will pay to Employee $25,000 plus 5% interest accrued from September 7, 2010 through the date of payment, which amount will be payable upon the first to occur of (a) the Company’s consummation of a financing transaction that generates gross  proceeds of $1,000,000; or (b) such other earlier time as the Company, in its sole discretion, determines that its cash position would allow the payment of such amounts.

 

(ii)           For certain expenses incurred by Employee in connection with his services to the Company, the Company will pay to Employee $4,940, to be paid promptly, but in no event later than the close of business on June 13, 2011.

 

(b)           Issuance of Common Stock.  As soon as is practicable within ten business days after the date of this Agreement, the Company will issue to Employee 50,000 shares of the Company’s common stock (the “Common Stock”).  Employee understands and acknowledges that the Common Stock will not be registered pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities laws (together with the Securities Act, the “Securities Laws”), and therefore cannot be sold or otherwise disposed of without registration under the Securities Laws or an exemption therefrom.  In this regard, Employee is familiar with Rule 144 promulgated under the Securities Act, as currently in effect, and understands the resale limitations imposed thereby. To the extent permissible under the Securities Laws, Company will exert reasonable best efforts to facilitate the removal of any restrictive legend on certificates of Common Stock so that such shares become free trading at the end of any applicable holding period required under the Securities Laws.

 

  

  

  

 

(c)           Amendment of Stock Option Terms.  The Company and Employee each acknowledge and agree that each of the Stock Option Agreements by and between the Company and Employee dated April 1, 2010 and January 21, 2011, respectively (as each was amended on March 15, 2011to accelerate vesting of all 800,000 and 750,000 options to that date) (together, the “Option Agreements”) are hereby further amended such that, notwithstanding Employee’s termination of employment with the Company, Employee may exercise options to purchase Common Stock pursuant to the terms of each of the Option Agreements for a period of three (3) years commencing on the Termination Date. Company will exert commercially reasonable efforts to facilitate prompt issuance of option shares upon exercise by Employee.

 

(d)           Amendment of Lock-Up Agreement.  The Company and Employee each acknowledge and agree that the Lock-Up Letter Agreement by and between the Company and Employee, dated February 18, 2011 (the “Lock-Up Agreement”) is hereby amended so that, notwithstanding anything contained to the contrary in the Lock-Up Agreement, Employee may sell up to 5,000 shares of Common Stock on any given trading day, until such time as Employee has received cumulative aggregate proceeds from such sales equal to $200,000 (the “Sales Threshold”).  Employee agrees and acknowledges that the Company’s Chief Financial Officer will have the right to determine, on a reasonable basis, when Employee has sold sufficient shares of Common Stock to meet the Sales Threshold.  Immediately upon reaching the Sales Threshold, Employee agrees and acknowledges that the terms and conditions of the Lock-Up Agreement in place prior to the amendment thereof pursuant to this Agreement, will resume in full force and effect.

 

(e)           Securities Laws Sale Facilitation.  The Company agrees that it will use reasonable best efforts to maintain the effectiveness of the current registration statement on Form S-8 under the Securities Act, and to facilitate Employee obtaining the necessary opinions of Company counsel, to the extent necessary for the sale of shares of Common Stock underlying the Option Agreements in compliance with applicable Securities Laws.

 

(f)           No Conflict.  The Company acknowledges and agrees that it will not be a conflict of interest, nor give rise to a claim of misappropriation of corporate opportunity, violation of confidentiality undertakings, or similar claims, if Employee elects to pursue independent business interests in relation to (i) the Company’s former gold mine project located in La Paz County, Arizona, known as the Rex Old Mine project; (ii) a high-grade underground gold mining target located in south-central Colorado know as the Dawson project; and (iii) a gold mine extracting gold from gravel and aggregates deposits on approximately 25 square miles of gold concession rights in the Konawaruk River area of Guyana, South America.  Furthermore, the Company acknowledges and agrees that Employee has formed a consulting arrangement with Messrs. Clyde Smith and Dave Smith, each of whom has served, or currently serves, as a director, employee or consultant of the Company, and that Employee may be consulting on projects with them.

 

  

  

  

 

(g)           Release of Claims.  The Company hereby releases Employee (understood herein to include his heirs, executors and legal representatives) of and from all obligations, actions, suits, demands, debts, accounts, covenants, contracts, damages, and all other claims whatsoever which it ever had, now has or may in the future have against Employee for or by reason of any cause, matter or thing arising in connection with services provided by Employee as a consultant and as an officer of the Company.

 

2.           Employee’s Promises.  In exchange for the “Company’s Promises” (defined in Paragraph 1 above), Employee has promised to do the following:

 

(a)           Definition of Employee’s Claims.  The claims that Employee is releasing in Paragraph 2 below (all and each are “Employee’s Claims”) include all of Employee’s rights to any relief of any kind from the Company through the date on which Employee signs this Agreement, including, but not limited to:

 

(i)           All claims Employee has now (except for Company’s Promises herein and in the Option Agreements), whether or not Employee now knows about the claims;

 

(ii)           All claims for attorneys’ fees;

 

(iii)           To the fullest extent permitted by law, all claims for alleged discrimination under any federal, state, or local law, including, for example, discrimination claims under the federal Americans with Disabilities Act (“ADA”) and discrimination claims under Title VII of the Civil Rights Act of 1964, the federal Age Discrimination in Employment Act (“ADEA”), the Older Workers Benefits Protection Act (“OWBPA”), and the Colorado Anti-Discrimination Act, Colo.Rev.Stat. § 24-34-401, et. al. (“CADA”);

 

(iv)           To the fullest extent permitted by law, all claims arising out of Employee’s employment and separation from employment with the Company including: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Worker Adjustment and Retraining Notification Act, as amended; the Occupational Safety and Health Act, as amended; the Sarbanes-Oxley Act of 2002; the Family and Medical Leave Act, as amended; Colorado leave laws, the Equal Pay Act; the Fair Labor Standards Act, as amended; the federal Fair Credit Reporting Act and any similar applicable state law; the National Labor Relations Act; Colorado wage-hour and wage-payment laws; retaliation under Colorado laws; and any claim for failure to pay wages, salary, bonuses, vacation pay, commissions, profit-sharing, stock options or employment benefits, including any claim for liquidated or double or triple damages;

 

(v)           To the fullest extent permitted by law, any claim for negligent misrepresentation, intentional misrepresentation or fraud; any claim for intentional injury, intentional infliction of emotional distress, negligence, negligent infliction of emotional distress, negligent hiring, supervision or retention, or defamation; any claim for violation of state leave law; any claim for disparate impact on any basis; any claim for discrimination, harassment, failure to accommodate or retaliation; any claim under any public policy, contract, tort, or common law, including but not limited to claim(s) for wrongful termination in violation of public policy, wrongful termination for any reason, or constructive discharge; any claim for breach of any term or condition of an employee handbook or policy manual, including any claim for breach of any promise of specific treatment in specific circumstances; any claim for breach of contract or for violation of or interference with contract rights, including but not limited to an employment contract; and

 

  

  

  

 

(vi)           To the fullest extent permitted by law, any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance.

 

(b)           Employee’s Waiver.  Employee, for Employee and on behalf of any person or entity who has or claims to have legal claims against the Company through Employee, hereby fully and finally releases, gives up, and otherwise relinquishes all of Employee’s Claims (defined in Paragraph 2 above) against the Company, including, for example, claims under the CADA, ADA, OWBPA, ADEA, and Title VII.  Employee will not bring any legal claims against the Company except if necessary to enforce the provisions of this Agreement.  The payments and other benefits that Employee will receive as set forth in this Agreement are full and fair payment for the release of all Employee’s Claims.  The Company does not owe Employee anything in addition to what Employee will receive under this Agreement.  This Agreement does not prohibit Employee from filing an administrative charge of discrimination with, or cooperating or participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission or other federal or state regulatory or law enforcement agency.  If Employee has filed or files a charge, complaint or action, the payment described in this Agreement is in complete satisfaction of any and all Claims in connection with such charge, complaint or action, and Employee will not be entitled to any other monetary relief of any kind with respect to the claims released in this Agreement.  Notwithstanding anything to the contrary contained herein, this Agreement does not prohibit Employee from making any claim against the Company relating to or arising out of the Company’s failure to pay any amounts due to Employee in connection with the Company’s obligation to indemnify Employee for his acts as an officer of the Company pursuant to the Company’s Articles of Incorporation, By-Laws or the laws of the State of Colorado.

 

(c)           Equipment and Materials.  On or before the Termination Date, Employee will return to the Company or destroy all records, correspondence, documents, financial data, plans, computers and laptops, mobile and/or smart telephones, zip drives, PDAs or other electronic device, computer disks, computer tapes, sales reports, customer lists, and other tangible property (including information stored on any computer in Employee’s possession or control belonging to the Company)  if such are specifically identified and so requested in writing by the Company.  .  Employee will cooperate with the Company and use Employee’s reasonable efforts to be available, on a reasonable basis, to answer questions that may arise to achieve a smooth transition after the Termination Date.

 

  

  

  

 

(d)           Special Definition of the Company.  For purposes of Paragraph 1(g) and the preceding provisions of this Paragraph 2, the word “Company” includes the Company; all and each of its parent entities, subsidiaries, and Affiliates; and all and each of the past and present officers, directors, shareholders, employees, agents, insurers, successors, and assigns of all and each of those entities (except that Employee does not release his claim for Stephen King’s personal guaranty and pledge in the event of non-payment to Employee of the Company’s Promissory Note of September 7, 2010).

 

3.           Additional Agreements and Understandings.

 

(a)           Except as provided herein, Employee continues to be bound by the Confidentiality and Non-Solicitation provisions contained in the Employment Agreement by and between the Company and Employee, dated April 1, 2010.  Employee acknowledges and agrees the Confidentiality and Non-Solicitation provisions are supported by sufficient consideration and survive the termination of Employee’s employment.

 

(b)           Assuming payment/performance of the consideration to Employee specified herein, the Company will be deemed to have paid Employee all wages and commissions due including earned but unused vacation time through the Termination Date less applicable taxes and deductions.  Employee is not entitled to any additional wages or commissions.

 

(c)           Employee acknowledges that the position of the Company is that, even though it has paid Employee to release Employee’s Claims, the Company does not admit that it is responsible or legally obligated to Employee, and in fact, the Company denies that it is responsible or legally obligated to Employee.  Employee acknowledges that the payments and other consideration described in this Agreement are sufficient consideration to support enforcement of this Agreement.

 

(d)           Each party agrees that the discussions leading up to this Agreement, and also the terms of this Agreement, are to be forever treated as confidential; and that each party will not disclose, directly or indirectly, either the discussions leading up to this Agreement or the terms of this Agreement to any person or organization.  However, Employee may disclose the terms of this Agreement to Employee’s spouse, attorneys, accountant, tax advisor, stock brokerage advancing option funds, government agencies and taxing authorities.  Each party will not otherwise disclose either the discussions leading up to this Agreement, or the terms of this Agreement, unless ordered to do so by a court of competent jurisdiction, or required under any applicable Securities Laws, or as otherwise agreed to in writing by the parties. Employee agrees that should Employee materially breach this Agreement, in addition to any other remedies to which it may be entitled, the Company will be entitled to cease payment of the monies specified in 1(a)(i) and (ii) of this Agreement.  Each party agrees not to disparage or defame in any way the other party or, in the case of the Company, any employees or officers of the Company, or make any negative comments about the other party, including, in the case of the Company, its employees and officers, or Employee’s employment relationship with the Company.  For purposes of this Paragraph 3(d), the Company includes the Company; all and each of its parent entities, subsidiaries, and Affiliates; and all and each of the past and present officers, directors, shareholders, employees, agents, insurers, successors, and assigns of all and each of those entities.

 

  

  

  

 

4.           Acknowledgement of Waiver of Claims under ADEA.  Employee acknowledges that Employee is waiving and releasing any rights that Employee may have under the Age Discrimination in Employment Act of 1967 ("ADEA"); and that Employee has entered into this Agreement knowingly and voluntarily.  Employee agrees that this Agreement does not apply to any rights or claims that may arise under the ADEA after the effective date of this Agreement.  Employee acknowledges that the consideration given for this Agreement is in addition to anything of value to which Employee was already entitled.  Employee further acknowledges that Employee has been advised by this paragraph that:

 

(a)           Employee should consult with an attorney before executing this Agreement;

 

(b)           Employee has up to twenty-one (21) days in which to consider whether Employee wants to sign this Agreement;

 

(c)           Employee has seven (7) days after Employee signs the Agreement to revoke the Agreement;

 

(d)           This Agreement shall not be effective until the revocation period has expired; and

 

(e)           Nothing in this Agreement prevents or precludes Employee from challenging or seeking a decision in good faith about the validity of this waiver under the ADEA, nor does it impose any advance conditions, penalties, costs or attorneys’ fees for doing so, unless specifically authorized by federal law.

 

5.           Right to Rescind.  Employee understands that Employee may rescind this Agreement within seven (7) calendar days to reinstate federal claims under the Age Discrimination in Employment Act; or within fifteen (15) calendar days to reinstate claims under the Minnesota Human Rights Act.  The 7-day and 15-day rescission periods will run at the same time.  Employee may revoke this Agreement during the 7-day or 15-day period after Employee signs it, by hand-delivering written notice to the Company via its Chief Financial Officer, Mark D. Dacko, or sending written notice as follows:

 

Mark D. Dacko

Chief Financial Officer

Standard Gold, Inc.

900 IDS Center

80 South Eighth Street

Minneapolis, MN 55402

 

Sent by certified mail, return receipt requested.

 

  

  

  

 

Employee understands that, if Employee revokes or rescinds Employee’s waiver as provided above, this Agreement will be null and void.  Employee’s employment will still end on the Termination Date and Employee will not receive the benefit of the Company’s Promises described in Paragraph 1 hereof.

 

6.           Governing Law and Venue.  The Parties agree that this Agreement shall be interpreted, construed, governed and enforced under and pursuant to the laws of the State of Minnesota.  Employee irrevocably consents to the exclusive jurisdiction of courts in Colorado for the purposes of any action arising out of or related to Employee’s employment, or any actions for temporary, preliminary, and permanent equitable relief.

 

7.           Severability.   In the event that any provision of this Agreement is unenforceable under applicable law (except the Employee’s Waiver), the validity or enforceability of the remaining provisions shall not be affected.  To the extent any provision of this Agreement is judicially determined to be unenforceable, a court of competent jurisdiction may reform any such provision to make it enforceable.  The provisions of this Agreement shall, where possible, be interpreted so as to sustain their legality and enforceability. If any portion of Employee’s Waiver is deemed to be invalid, this Agreement is null and void and the Company, in addition to any other remedies to which it may be entitled, will be entitled to: (i) cease payment of the severance pay specified within this Agreement; (ii) obtain repayment from Employee of an amount equal to the severance specified within this Agreement (to the extent they have been paid to Employee); and (iii) recover from Employee the Company’s reasonable expenses including attorneys’ fees and costs incurred by the Company in recovering the foregoing monies.

 

8.           Agreement Freely Entered Into.   Employee represents that this Agreement, and the release contained in this Agreement, have been given voluntarily and are free from duress or undue influence by any person or entity released by this Agreement, or by any third-party.  Employee has read this Agreement carefully and understands all of its terms.  Employee has had the opportunity to discuss this Agreement with Employee’s own attorney before signing it, and to be sure that Employee (a) understands the meaning of the terms and conditions contained in this Agreement and (b) fully understands the effect of this Agreement.  In agreeing to sign this Agreement, Employee has not relied on any statements or explanations made by the Company, its agents or its attorneys, except as set forth in this Agreement.  Employee agrees to fully abide by the terms of this Agreement.

 

  

  

  

 

9.           Entire Agreement.  Employee and the Company agree that this Agreement is the final and complete agreement between the parties, and that no promises or understandings are in place outside of this Agreement.  Any modification of, or addition to, this Agreement must be in writing, and signed by Employee and the Company. All agreements of the Company herein have been duly approved by or on behalf of the Board of Directors of  the Company, and the execution and delivery hereof are duly authorized and binding upon the Parties.

 

	
STANDARD GOLD, INC.

 

 

By /s/ Mark D. Dacko

 

Its: CFO

 

Date:  June 1, 2011

 

	
STEPHEN E. FLECHNER

 

 

/s/ Stephen E. Flechner

(SIGNATURE)

 

 

Date: June 1, 2011Unassociated Document

EMPLOYMENT AGREEMENT

AGREEMENT made as of June 6, 2011 between Revolutions Medical Corporation, a Nevada corporation with offices at 670 Marina Drive, 3rd floor, Charleston, SC 29492 (hereinafter called the “Company”), and Burt Hodges, residing at 206 Ferry St, Mt. Pleasant, SC 29464 (hereinafter referred to as the “Executive”).

WITNESSETH:

WHEREAS, the Company is engaged in the medical devices industry including the design, manufacturing and marketing of its RevVac Safety Syringe, Rev Color , Rev 3D and Rev Display products; and

WHEREAS, the Company’s Board of Directors (the “Board” or the “Board of Directors”) believes that the Executive possesses the skills and abilities necessary for the Company to meet its current and future objectives; and 

 

WHEREAS, the Executive desires to provide such services to the Company in such capacities, on and subject to the terms and conditions hereof;

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

	
1. 

	
EMPLOYMENT

 Subject to all of the terms and conditions hereof, the Company does hereby employ the Executive and the Executive does hereby accept such employment.

	
2. 

	
TERM

The term of this Agreement shall commence on the date hereof and shall continue until June 1, 2014 (the “Term”), unless sooner terminated as herein provided including termination under any of the subsections described in Section 7.

 

	
3. 

	
COMPENSATION

(a) Base Salary.  The Company agrees to pay the Executive during the Term hereof a salary at the annual rate of: (1) One Hundred Sixty Five Thousand Dollars ($165,000).  The Company shall make all salary payments in equal bi-weekly installments in arrears.  Unless otherwise determined by the Board, Executive’s Base Salary at the commencement of the second and each subsequent year shall be adjusted to provide for all cost of living increases based upon the percentage increase (if any) in the Consumer Price Index for All Urban Consumers (1967=100; All Cities), prepared by the United States Bureau of Labor Statistics, or any successor thereto, over said Index in effect at the commencement of the preceding calendar year.  All salary, bonus, or other compensation payable to the Executive shall be subject to the customary withholding, FICA, medical and other tax and other employment taxes and deductions as required by federal, state and local law with respect to compensation paid by an employer to an employee.

 

 

	Page 1	

Executive: _____

Company: _____

 

  

  

  

(b)   Options.  The Company hereby confirms the grant as of June 1, 2011  to the Executive of options to purchase five hundred thousand (500,000) shares of its common stock under and pursuant to the Company’s 2007 Stock Option Plan (the “2007 Plan”) previously registered on Form S-8 under the Securities Act of 1933, as amended (the “Securities Act”).   The exercise price of the options shall be Fifty Cents ($.50) per share of Common Stock for a period of three years. The Executive acknowledges that the Company has delivered a copy of the 2007 Plan to him.

(c)      Bonus. Bonuses to all of the Company’s employees are determined by the Board of Directors at the end of every fiscal year, and will depend upon the progress and profitably of the Company.  The Company does not guarantee Executive the payment of any bonuses.

	
4. 

	
DUTIES

The Executive is hereby employed as Chief Financial Officer of the Company and shall perform the following services in connection with the general business of the Company:

(a)           Duties as Chief Financial Officer.  In his capacity as Chief Financial Officer the Executive shall be responsible to lead and manage all of the operations of the Company that are related to finance and capital markets, including, but not limited to, providing expertise in making financial plan and strategy, and working with the Company’s U.S. legal counsel and auditors to implement, monitor and oversee the Company’s compliance with the requirements of the Sarbanes-Oxley Act, Securities Act of the 1933, Exchange Act of the 1934, and the listing rules of the OTC Markets and to advise the Board of the Directors with respect to the Company’s internal controls and procedures, including disclosure controls and procedures.

(b)           Compliance.   The Executive hereby agrees to observe and comply with such reasonable rules and regulations of the Company as may be duly adopted from time to time by the Board of Directors and otherwise to carry out and perform those orders, directions and policies stated to him from time to time by the Board of Directors, either as specified in the minutes of the proceedings of the Board of Directors of the Company or otherwise in writing that are reasonably necessary and appropriate to carry out his duties hereunder. Such orders, directions and policies shall be legal and shall be consistent with the Executive's position as Chief Financial Officer.

	
5. 

	
EXTENT OF SERVICES

The Executive agrees to serve the Company faithfully and to the best of his ability and shall devote his full time, attention and energies to the business of the Company during customary business hours. The Executive agrees to carry out his duties in a competent and professional manner and to at all times promote the best interests of the Company. The Executive shall not, during the term of his employment hereunder, engage in any other business, whether or not pursued for profit.  Nothing contained herein shall be construed as preventing the Executive from investing in any other business or entity which is not in competition with the business of the Company.  Nothing contained herein shall be construed as preventing the Executive from engaging in (1) personal business affairs and other personal matters, (2) serving on civic or charitable boards or committees, or (3) serving on the board of directors of companies that do not compete directly or indirectly with the Company, provided however, that none of such activities materially interferes with the performance of his duties under this Agreement.

 

 

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Executive: _____

Company: _____

 

  

  

  

	
6. 

	
BENEFITS AND EXPENSES 

During the term of this agreement Executive shall be entitled to, and the Company shall provide, the following benefits in addition to those specified in Section 3:

(a)           Vacation.  The Executive shall be entitled to three (3) weeks vacation in each twelve (12) month period during the Term. Vacation may be taken at such time(s) as Executive may determine provided that such vacation does not interfere with the Company's business operations. The Executive must use his vacation in any event by May 31 of the year next following the year in which the vacation accrues or such vacation time shall expire.  The Executive shall not be entitled to compensation for unused vacation except that, upon termination of his employment, the Company shall pay to the Executive for all of his accrued, unexpired vacation time.

(b)   Expense Reimbursement.  The Company shall reimburse the Executive upon submission of vouchers for his out-of-pocket expenses for travel, entertainment, meals and the like reasonably incurred by him pursuant to his employment hereunder in accordance with the general policy of the Company as adopted by its Board of Directors from time to time.

(c)           Health Insurance.  The Company shall provide the Executive with health insurance in the coverage consistent with those provided to other key executives of the Company as determined by the Board of Directors from time to time.

(d)      Disability.  If the Company maintains disability insurance, then the Company shall provide a disability policy for the Executive comparable to the policies in force for other similar executives in the Company. If the Company does not maintain a disability policy, then the Executive may obtain such a policy in amounts equal to his salary and be reimbursed by the Company for all premium payments thereunder.

(e)     Other Benefits. The Company shall provide to the Executive other benefits as reasonably determined by the Board from time to time.

 

 

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Executive: _____

Company: _____

 

  

  

  

	
7.

	
TERMINATION; DISABILITY; RESIGNATION; TERMINATION WITHOUT CAUSE

(a)           Termination for Cause.  The Company shall have the right to terminate the Executive's employment hereunder:

(1)           For cause upon ten (10) business days' prior written notice to Executive.  Upon such termination, Executive shall have no further duties or obligations under this Agreement (except as provided in Section 8) and the obligations of the Company to Executive shall be as set forth below.  For purposes of this Agreement, “cause” shall mean:

(A)   Executive’s conviction of a felony under federal or state law;

(B)   Executive’s failure to perform (other than as a result of Executive's being Disabled), in any material respect, any of his duties or obligations under or in accordance with this Agreement and either (i) the Executive fails to cure such failure within ten (10) business days following receipt of notice from the Company, or (ii) if such failure by its nature cannot be cured within  such ten business day period, the Executive fails to commence to cure such failure within such ten business day period and proceed to cure such failure within thirty (30) days thereafter.

(C)   Executive commits any dishonest, malicious or grossly negligent act which is materially detrimental to the business or reputation of the Company, or the Company’s business relationships, provided, however, that in such event the Company shall give the Executive written notice specifying in reasonable detail the reason for the termination.

 Notwithstanding the foregoing, the Executive may, within ten (10) business days following delivery of the notice of termination referred to in the preceding paragraph, by written notice to the Board of Directors, cause the matter of the termination of his employment by the Company to be discussed at the next regularly scheduled meeting of the Board of Directors or at a special meeting of the Board of Directors requested by a majority of the members of the Board of Directors who are not employees of the Company or any of its subsidiaries.  The Executive shall be entitled to be present and to be represented by counsel at such meeting which shall be conducted according to a procedure deemed equitable by a majority of the directors present.  If, at such meeting, it shall be determined that the employment of the Executive had been terminated without proper cause, the provisions of this Agreement shall be reinstated with the same force and effect as if the notice of termination had not been given; and the Executive shall be entitled to receive the compensation and other benefits provided herein for the period from the date of the delivery of the notice of termination through the date of such reinstatement.

In the event, the Company terminates the Executive's employment for cause, then the Executive shall be entitled to receive through the date of termination:  (1)  his base salary as defined in Section 3(a) hereof; (2) the benefits provided in Section 6 hereof including all accrued but unpaid vacation; and (3) the right to exercise options to purchase shares of the common stock of the Company that have vested under this Agreement and in accordance with the 2007 Plan through the date of termination.

 

 

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Executive: _____

Company: _____

 

  

  

  

 In the event that Executive’s employment is terminated by the Company without cause including but not limited to an involuntary change in position or termination of the Executive as a result of a material breach of this Agreement by the Company (any of the foregoing, an “Involuntary Termination”), Executive shall receive from the Company, through the effective date of the Involuntary Termination:  (1)  his base salary as defined in Section 3(a) hereof; (2) the benefits provided in Section 6 hereof including all accrued but unpaid vacation; (3) the right to exercise options to purchase shares of the common stock of the Company that have vested under this Agreement and in accordance with the 2007 Plan through the date of the Involuntary Termination; and (4) an additional two weeks’ pay of the Executive’s then current Base Salary.

(c)           Disability.  The Company shall have the right to terminate the Executive's employment hereunder:

(1)           By reason of the Executive's becoming Disabled for an aggregate period of ninety (90) days in any consecutive three hundred sixty (360) day period (the “Disability Period”).

(A)   “Disabled” as used in this Agreement means that, by reason of physical or mental incapacity, Executive shall fail or be unable to substantially perform the customary duties of his employment.

(B)   If the existence of a disability is in dispute, it shall be resolved by two physicians, one appointed by Executive and one appointed by the Board of Directors of the Company.  If the two physicians so selected cannot agree as to whether or not Executive is Disabled as defined in subsection (A) above, the two physicians so selected shall designate a third physician and a majority of the three physicians so selected shall determine whether or not Executive is Disabled.

(C)   In the event Executive is Disabled, during the period of such disability he shall continue to receive his base compensation in the amount set forth in Section 3(a) hereof, which base compensation shall be reduced by the amount of all disability benefits he actually receives under any disability insurance program in place with the Company until the first to occur of (1) the cessation of the Disability or (2) the termination of this Agreement by the Company at any time after the Disability Period.  During the period of Disability and prior to termination, the Executive shall continue to receive the benefits provided in Section 6 hereof and shall have the right to exercise options to purchase shares of the Company’s common stock in accordance with the 2007 Plan.

(D)   For the purposes of this Section 7(b), any amounts to be paid to Executive by the Company pursuant to subsection (C) above, shall not be reduced by any disability income insurance proceeds received by him under any disability insurance policies owned or paid for by the Executive.

 

 

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Executive: _____

Company: _____

 

  

  

  

(E)    If the Executive is terminated at the end of the Disability Period, then the Executive shall receive through the date of termination: (1) his base salary as defined in Section 3(a) hereof; (2) the benefits provided in Section 6 hereof including all accrued but unpaid vacation; (3) the right to exercise options to purchase shares of common stock of the Company that have vested under this Agreement in accordance with the 2007 Plan through the date of termination; and (4) an additional two weeks’ pay of the Executive’s then current Base Salary.

(d)           Death.  The Company's employment of the Executive shall terminate upon his death and all payments and benefits shall cease upon such date provided, however, that under this Agreement the estate of such Executive shall be entitled to receive through the date of termination (1) his base salary as defined in Section 3(a) hereof, (2) the benefits provided in Section 6 hereof including all accrued but unpaid vacation; (3) the right to exercise options to purchase shares of  common stock of the Company that have vested under this Agreement and in accordance with the 2007 Plan; and (4) an additional two weeks’ pay of the Executive’s then current Base Salary.

(e)           Termination by the Executive.

The Executive may elect, by written notice to the Company, such notice to be effective immediately upon receipt by the Company, to terminate his employment hereunder if:

(1)   The Company sells all or substantially all of its assets;

(2)   The Company merges or consolidates with another business entity in a transaction immediately following which the holders of all of the outstanding shares of the voting capital stock of the Company own less than a majority of the outstanding shares of the voting capital stock of the resulting entity (whether or not the resulting entity is the Company); provided, however, that the Executive shall not be permitted to terminate his employment under this subsection unless he notifies the Company in writing that he does not approve of the directors selected to serve on the Board after the merger or similar transaction described herein;

(3)   More than fifty (50%) percent of the outstanding shares of the voting capital stock of the Company are acquired by a person or group (as such terms are used in Section 13(d) of the Securities Exchange Act of 1934, as amended), which person or group includes neither the Executive nor the holders of the majority of the outstanding shares of the voting capital stock of the Company on the date hereof; provided, however, that the Executive shall not be permitted to terminate his employment under this subsection unless he notifies the Company in writing that he does not approve of the directors selected to serve on the Board after the merger or similar transaction described herein;

 

 

	Page 6	

Executive: _____

Company: _____

 

  

  

  

(4)   The Company assigns to the Executive duties which would require him, as a practical matter, to relocate outside the greater Charleston metropolitan area or assigns him duties that are not commensurate with his position as the Chief Financial Officer of the Company;

(5)     The Company defaults in making any of the payments required under this Agreement and said default continues for a thirty (30) day period after the Executive has given the Company written notice of the payment default.

 If the Executive elects to terminate his employment hereunder pursuant to this Section 7(e), then (1) the Company shall continue to pay to the Executive his salary as provided in Section 3(a) hereof through the end of the Term; (2) the Company shall continue to provide to the Executive the benefits provided in Section 6 hereof through the end of the Term; (3) all of the options granted to the Executive hereunder to purchase shares of the common stock of the Company shall vest immediately and the term of the option shall continue for the period specified in the option had the employment of the Executive not been so terminated; and (4) the Company shall provide Executive an additional two weeks’ pay of the Executive’s then current Base Salary.

(f)           Resignation.  If the Executive voluntarily resigns during the term of this Agreement other than pursuant to Section 7(e) hereof, then all payments and benefits shall cease on the effective date of resignation, provided that under this Agreement the Executive shall be entitled to receive through the date of such resignation: (1) his base salary as defined in Section 3(a) hereof, (2) the benefits provided in Section 6 hereof including all accrued but unpaid vacation; (3) the right to exercise options to purchase shares of common stock of the Company that have vested under this Agreement and in accordance with the 2007 Plan through the date of resignation; and (4) an additional two weeks’ pay of the Executive’s then current Base Salary.

(g)           Mitigation. In the event of the termination of this Agreement by the Executive as a result of a material breach by the Company of any of its obligations hereunder, or in the event of the termination of the Executive’s employment by the Company in breach of this Agreement, the Executive shall not be required to seek other employment in order to mitigate his damages hereunder.

	 	
8. 

	
CONFIDENTIALITY; RESTRICTIVE COVENANTS; NON COMPETITION

(a)           Non-Disclosure of Information.  (1) The Executive recognizes and acknowledges that by virtue of his position as a key executive, he will have access to the lists of the Company's referral sources, suppliers, advertisers and customers, financial records and business procedures, sales force and personnel, programs, software, selling practices, plans, special methods and processes for electronic data processing, special techniques for testing commercial and sales materials and products, custom research services in product development, marketing strategy, product manufacturing techniques and formulas, and other unique business information and records (collectively “Proprietary Information”), as same may exist from time to time, and that they are valuable, special and unique assets of the Company's business. The Executive also may develop on behalf of the Company a personal acquaintance with the present and potential future clients and customers of the Company, and the Executive’s acquaintance may constitute the Company’s sole contact with such clients and customers.

 

 

	Page 7	

Executive: _____

Company: _____

 

  

  

  

(a)(2) The Executive will not during the Term of his employment, and at any time following the end of the Term of or earlier termination of this Agreement regardless of the reason therefor, disclose trade secrets or other confidential information about the Company, including but not limited to Proprietary Information, to any person, firm, corporation, association or other entity for any reason or any purpose whatsoever or utilize such Proprietary Information for his own benefit or the benefit of any third party; provided, however, that nothing contained herein shall prohibit the Executive from using his personal acquaintance with any clients or customers of the Company at any time in a manner that is not inconsistent with their remaining as clients or customers of the Company.

(a)(3) All equipment, records, files, memoranda, computer print-outs and data, reports, correspondence and the like, relating to the business of the Company which Executive shall use or prepare or come into contact with shall remain the sole property of the Company.  The Executive shall immediately turn over to the Company all such material in Executive's possession, custody or control at such time as this Agreement is terminated.

(a)(4) “Proprietary Information” shall not include information that was a matter of public knowledge on the date of this Agreement or subsequently becomes public knowledge other than as a result of having been revealed, disclosed or disseminated by Executive, directly or indirectly, in violation of this Agreement.

(b)           Non-Solicitation.  The  Executive covenants and agrees that during the term of his employment, and for a two (2) year period immediately following the end of the Term of or earlier termination of this Agreement, regardless of the reason therefor, the Executive shall not solicit, induce, aid or suggest to: (1) any employee to leave such employ, (2) any contractor, consultant or other service provider to terminate such relationship, or (3) any customer, agency, vendor, or supplier of the Company to cease doing business with the Company.

(c)           Non-Competition.  For purposes of this Section 8 (c) the parties agree that the “business of the Company” shall be defined to include the development, manufacture, packaging, advertising, marketing, distribution and sale of safety syringes and MRI software.

The  Executive covenants and agrees that during the Term Executive shall not engage in any activity or render service in any capacity, directly or indirectly, (whether as principal, director, officer, investor, employee, consultant or otherwise) for or on behalf of any person or persons or entity in the United States or anywhere else in the world if such activity or service (1) directly or indirectly involves or relates to any business which is in competition with the business of the Company or (2) other business acquired or begun by the Company during the period of the Executive’s employment hereunder but in the latter event only if the Executive was directly involved in the operation of such other business. It is understood and agreed that nothing herein contained shall prevent the Executive from engaging in discussions concerning business arrangements to become effective upon the expiration of the term of this covenant not to compete.

 

 

	Page 8	

Executive: _____

Company: _____

 

  

  

  

(d)           Enforcement.  In view of the foregoing, the Executive acknowledges and agrees that it is reasonable and necessary for the protection of the good will, business, trade secrets, confidential information and Proprietary Information of the Company that he makes the covenants in this Section 8 and that the Company will suffer irreparable injury if the Executive engages in the conduct prohibited by Section 8 (a), (b) or (c) of this Agreement. The Executive agrees that upon a breach, threatened breach or violation by him of any of the foregoing provisions of this Section 8, the Company, in addition to all other remedies it may have including an action at law for damages, shall be entitled as a matter of right to injunctive relief, specific performance or any other form of equitable relief in any court of competent jurisdiction without being required to post bond or other security and without having to prove the inadequacy of the available remedies at law, to enjoin and restrain the Executive and each and every other person, partnership, association, corporation or organization acting in concert with the Executive, from the continuance of any action constituting such breach. The Company shall also be entitled to recover from the Executive all of its reasonable costs incurred in the enforcement of this Section 8 including its reasonable legal fees. The Executive acknowledges that the terms of Section 8(a), (b) and (c) are reasonable and enforceable and that, should there be a violation or attempted or threatened violation by the Executive of any of the provisions contained in these subsections, the Company shall be entitled to relief by way of injunction, specific performance or other form of equitable relief.  In the event that any of the foregoing covenants in Sections 8 (a), (b) or (c) shall be deemed by any court of competent jurisdiction, in any proceedings in which the Company shall be a party, to be unenforceable because of its duration, scope, or area, it shall be deemed to be and shall be amended to conform to the scope, period of time and geographical area which would permit it to be enforced.

(e)           Independent Covenants.   The Company and the Executive agree that the covenants contained in this Section 8 shall each be construed as a separate agreement independent of any of the other terms and conditions of this Agreement, and the existence of any claim by the Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense by the Executive to the Company’s enforcement of any of the covenants of this Section 8.

(f) Exclusion from Arbitration.  The terms and conditions of this Section 8 including the enforcement thereof by the Company are specifically excluded from the arbitration of all other matters under this Agreement as provided in Section 13 hereof.

	 	
9.

	
DISCLOSURE AND ASSIGNMENT OF RIGHTS.

(a) Disclosure.  The Executive agrees that he will promptly assign to the Company or its nominee(s) all right, title and interest of the Executive in and to any and all ideas, inventions, discoveries, secret processes, and methods and improvements, together with any and all patents or other forms of intellectual property protection that may be obtainable in connection therewith or that may be issued thereon, such as trademarks, service marks and copyrights, in the United States and in all foreign countries, which the Executive may invent, develop, or improve or cause to be invented developed or improved, on behalf of the Company while engaged in Company related decisions, during the Term or within six (6) months after the Term or earlier termination of this Agreement, which are or were related to the scope of the Company’s business or any work carried on by the Company or to any problems and projects specifically assigned to the Executive. All works and writings which relate to the Company’s business are works for hire under the Copyright Act, and any and all copyrights therefor shall be placed in the name of and inure to the benefit of the Company.

 

 

	Page 9	

Executive: _____

Company: _____

 

  

  

  

(b) Assignment of Interest.  The Executive agrees to disclose immediately to duly authorized representatives of the Company any ideas, inventions, discoveries, processes, methods and improvements covered by the terms of this Section 9 and to execute, at the Company’s expense, all documents reasonably required in connection with the Company’s application for appropriate protection and registration under the federal and foreign patent, trademark, and copyright law and the assignment thereof to the Company’s nominee (s). The Executive hereby appoints the Company’s Chairman as true and lawful attorney in fact with full powers of substitution and delegation to execute acknowledge and deliver any such instruments and assignments, which the Executive shall fail or refuse to execute or deliver.

	
10. 

	
INDEMNIFICATION.

The Company shall indemnify the Executive to the maximum extent permitted under the Nevada Revised Statutes, or any successor thereto, and shall promptly advance any expenses incurred by the Executive prior to the final disposition of the proceeding to which such indemnity relates upon receipt from the Executive of a written undertaking to repay the amount so advanced if it shall be determined ultimately that the Executive is not entitled to indemnity under the standards set forth in the Nevada Revised Statutes or its successor.  The Employer shall use commercially reasonable efforts to obtain and maintain throughout the Term of the employment of the Executive hereunder directors’ and officers’ liability insurance for the benefit of the Executive.  The indemnification obligations of the Company under this Section 10 shall survive the termination of the Term or of this Agreement for any reason whatsoever unless the Agreement is terminated for cause.

	
11. 

	
NOTICES.

(a)           Any and all notices or other communications given under this Agreement shall be in writing and shall be deemed to have been duly given on (1) the date of delivery, if delivered in person to the addressee, (2) the next business day if sent by overnight courier, or (3) three (3) days after mailing, if mailed within the continental United States, postage prepaid, by certified or registered mail, return receipt requested, to the party entitled to receive same, at his or its address set forth below:

 

 

	Page 10	

Executive: _____

Company: _____

 

  

  

  

If to the Company:

Revolutions Medical Corporation

670 Marina Drive, 3rd floor

Charleston, SC 29492

Attention: Rondald L. Wheet

Fax No.: (843) 971-6917

With a copy to (which shall not constitute notice):

Lucosky Brookman LLP

33 Wood Avenue South, 6th floor

Iselin, NJ 08830

Attn: Joseph M. Lucosky, Esq.

Fax No.: (732) 395-4401

If to the Executive:

Burt Hodges

206 Ferry St

Mt. Pleasant, SC 29464

(b)           The parties may designate by notice to each other any new address for the purposes of this Agreement as provided in this Section 11.

	
12. 

	
MISCELLANEOUS PROVISIONS

(a)       Applicable Law.  This document shall, in all respects, be governed by the laws of the State of South Carolina excluding any conflicts of law provisions.  The parties acknowledge that substantially all of the negotiations relating to this Agreement were conducted in, and that this Agreement has been executed by both parties in State of South Carolina.  .

 

(b) Survival.  The parties agree that the covenants contained in Section 3 hereof shall survive any termination of employment by the Executive and any termination of this Agreement.  In addition, the parties agree that any compensation or right which shall have accrued to the Executive as of the date of any termination of employment or termination hereof shall survive any such termination and shall be paid when due to the extent accrued on the date of such termination.

 

(c) Assignability.  All of the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the parties and their respective heirs, personal representatives, successors and assigns.  The obligations of the Executive may not be delegated, except as set forth herein, however, and the Executive may not, without the Company’s written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest therein.  Any such attempted delegation or disposition shall be null and void and without effect.  The Company and the Executive agree that this Agreement and all of the Company’s rights and obligations hereunder may be assigned or transferred by the Company to and may be assumed by and become binding upon and may inure to the benefit of any affiliate of or successor to the Company.  The term “successor” shall mean, with respect to the Company or any of its subsidiaries, and any other corporation or other business entity which, by merger, consolidation, purchase of the assets, or otherwise, acquires all or a material part of the assets of the Company.  Any assignment by the Company of its rights and obligations hereunder to any affiliate of or successor shall not be considered a termination of employment for purposes of this Agreement.

 

 

	Page 11	

Executive: _____

Company: _____

 

  

  

  

 

(d) Modifications or Amendments.  No amendment, change or modification of this document shall be valid unless in writing and signed by each of the parties herein.

 

(e) Waiver.  No reliance upon or waiver of one or more provisions of this Agreement shall constitute a waiver of any other provisions hereof.

 

(f) Severability.  If any provision of this Agreement as applied to either party or to any circumstances shall be adjudged by a court of competent jurisdiction to be void or unenforceable, the same shall in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement.  If any court construes any of the provisions to be unreasonable because of the duration of such provision or the geographic or other scope thereof, such court may reduce the duration or restrict the geographic or other scope of such provision and enforce such provision as so reduced or restricted.

 

(g) Separate Counterparts.  This document may be executed in one or more separate counterparts, each of which, when so executed, shall be deemed to be an original.  Such counterparts shall, together, constitute and shall be one and the same instrument.

 

(h) Headings.  The captions appearing at the commencement of the sections hereof are descriptive only and are for convenience of reference.  Should there be any conflict between any such caption and the section at the head of which it appears the substantive provisions of such section and not such caption shall control and govern in the construction of this document.

 

(i) Specific Performance.  It is agreed that the rights granted to the parties hereunder are of a special and unique kind and character and that, if there is a breach by either party of any material provision of this document, the other party would not have any adequate remedy at law.  It is expressly agreed, therefore, that the rights of the parties may be enforced by an action for specific performance and other equitable relief.

 

(j) Further Assurances.  Each of the parties shall execute and deliver any and all additional papers, documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out their intentions as set forth herein.

 

(k) Entire Agreement.  This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter of this Agreement, and any and all prior agreements, understandings or representations are hereby terminated and canceled in their entirety.

 

 

	Page 12	

Executive: _____

Company: _____

 

  

  

  

 

(l) Neutral Construction.  Neither party may rely on any drafts of this Agreement in any interpretation of the Agreement.  Each party to this Agreement has reviewed this Agreement and has participated in its drafting and, accordingly, neither party shall attempt to invoke the normal rule of construction to the effect that ambiguities are to be resolved against the drafting party in any interpretation of this Agreement.

 

(m) Attorneys’ Fees.  In the event that either party hereto commences litigation against the other to enforce such party’s rights hereunder, the prevailing party shall be entitled to recover all costs, expenses and fees, including reasonable attorneys’ fees (including in-house counsel), paralegals’ fees, and legal assistants’ fees through all appeals.

	
13. 

	
SUBMISSION TO ARBITRATION.

Except as hereinafter expressly provided, every difference or dispute, of whatever nature, between the Company and the Executive involving (1)  any breach of this Agreement or (2) any other difference or dispute arising out of, related to, under or having any connection with this Agreement, shall be settled and finally determined by arbitration in Charleston, South Carolina  in accordance with the then current commercial arbitration rules of the American Arbitration Association, and judgment upon any award rendered may be entered in any court having jurisdiction, including but not limited to the courts of the State of South Carolina, and the determination of such arbitration proceeding shall be binding and conclusive upon the parties.  Any claim by the Company against the Executive arising out of, under, or related to, Section 8 of this Agreement, whether for equitable relief or monetary damages or any combination, is specifically excluded from arbitration under this Section 13.

 

 

	Page 13	

Executive: _____

Company: _____

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement on the date first above written.

 

	 	REVOLUTIONS MEDICAL CORPORATION	 
	 	 	 	 
	
 

	
By: 

	/s/ Rondald L. Wheet	 
	 	 	Name: Rondald L. Wheet	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	EXECUTIVE	 
	 	 	 	 
	 	 	/s/ Burt Hodges	 
	 	 	Burt Hodges	 

 

 

	Page 14	

Executive: _____

Company: _____

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