Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sonic Environmental Solutions Inc. - Exhibit 4.16

 

EXHIBIT 4.16 

 EXECUTIVE EMPLOYMENT AGREEMENT 

 THIS AGREEMENT made as of this the 1st day of January, 2005.

 BY AND BETWEEN: 

  
    
       Sonic Environmental Solutions Inc. a company incorporated under
        the laws of Canada, to be continued under the laws of British Columbia,
        with business offices at #2100 – 1066 West Hastings St., Vancouver,
        British Columbia V6E 3X2 

       (hereinafter referred to as “Sonic”)

    

  

 AND: 

  
    
       Dr. James M. Hill, a management executive and professional engineer
        with address at 1230 Seymour Boulevard, North Vancouver, British Columbia,
        V7J 2J8.

       (hereinafter referred to as the “Executive ”) 

    

  

 WHEREAS: 

	 (A)      	 Sonic is engaged in the business of developing and marketing Sonoprocesses
      and related technology and services; and 
	 
	 (B)      	 The Executive is experienced and qualified to provide technical and business
      development services, specifically relating to the environmental and process
      industries; 

 NOW THEREFORE, in consideration of the mutual promises and covenants
  as hereinafter set forth, the parties hereto agree as follows: 

 1. CONTRACT, TERMS AND DUTIES 

 1.1 Contract. Sonic hereby agrees to employ the Executive and
  the Executive hereby accepts and undertakes to be employed by Sonic upon and
  subject to the terms and conditions of this Agreement. 

 1.2 Term. The term for the provision of services by the Executive
  to Sonic will be for two years commencing on January 1st 2005 (the
  “Term”). 

 1.3 Title. The Executive will have the title of “Executive
  Vice President” and report to the CEO and President of Sonic. 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 1 of 8 	 	 Executive Employment Agreement 
      

  

 

1.4 Duties. The Executive will provide such executive management
  services as may be required by Sonic as part of the executive management team
  of Sonic in whatever capacity required. The Executive will specifically be responsible
  for developing new business and new applications for the Company in all markets.
  The Executive will also assist in directing the corporate operations of Sonic.

 1.5 General Diligence. During the Term of this Agreement, the
  Executive will 

	 	 (a)	 diligently provide and perform the services arising under this Agreement;
      and 
	 
	 	 (b)	 provide the services at the specific times and days as reasonably directed
      by Sonic, excepting holidays, absence due to sickness and other authorized
      absences as set out in this Agreement. 

 1.6 General Representation and Consent.  The Executive represents
  to Sonic that this Agreement does not conflict with any agreement to which the
  Executive is subject. The Executive is not under any obligation or restriction
  due to any former contractor, employer or other person with respect to his know-how,
  business and customer contacts and like matters. The Executive will accurately
  complete any necessary personal information form required by a stock exchange
  or other regulatory authority, and consents to Sonic completing any background
  or reference checks it deems necessary or desirable. The Executive represents
  the accuracy and completeness of all information supplied to Sonic in any resume
  or other document. 

 2. COMPENSATION and FACILITIES 

 2.1 Payment. Sonic will pay the Executive an annual salary of
  $120,000 to be paid semi-monthly in arrears.

 2.2 Bonus. The Executive will be entitled to participate in
  any general bonus plan established for the senior management of the Company
  on a basis reflecting the relative responsibilities and achievements of members
  of the management team.

 2.3 Annual Vacation. The Executive shall earn five weeks annual
  paid vacation for each year of employment to be taken at mutually agreeable
  times. Vacation may be taken in advance of earned entitlement and a maximum
  of one week unused vacation may be carried forward to be used in the following
  year. 

 2.4 Other Benefits. In addition to other compensation set out
  in this Agreement, the Executive will be able to participate in such extended
  health, medical, dental, disability insurance or other benefit plans or retirement
  rights to be established by Sonic, and amended from time to time and made available
  to employees of Sonic. 

 2.5 Car Lease. The Executive will be provided with a leased vehicle
  and will be reimbursed for operating expenses. 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 2 of 8 	 	 Executive Employment Agreement 
      

  

 

2.6 Stock Options. The Executive has been granted options to
  purchase Sonic common shares (the “Options”) prior to the date of
  this Agreement which are all vested. The Executive shall be entitled to receive
  further options based upon the progress of the Company in developing new applications
  and new markets. 

 2.7 Expenses. Sonic will provide reasonable expense advances
  upon request and will reimburse reasonable out-of-pocket business expenses incurred
  by the Executive on behalf of Sonic upon presentation of appropriate vouchers
  and receipts. 

 2.8 Office Facilities. Sonic will make available to the Executive an
  executive office equipped with telephone, cellular telephone, and internet computer
  access and assist with any facilities required to operate from remote locations.

 3. EXCLUSIVITY OF SERVICES 

 3.1 Exclusivity. The Executive will devote such time, attention,
  energies and best efforts to Sonic as may be reasonably required and will not,
  without the written consent of Sonic, during the Term, engage in other business
  activities (whether or not such business activity is pursued for gain, profit,
  or other pecuniary advantage) which unreasonably interferes with the provision
  of services to Sonic by the Executive hereunder. 

 4. TERMINATION 

 4.1 Termination for Cause. Sonic may, at any time, without advance
  notice to the Executive, or payment of any compensation in lieu of notice, forthwith
  terminate the services of the Executive for cause. The term “cause”
  means (i) a persistent breach of this Agreement by the Executive and failure
  by the Executive to cure the breach within thirty days following written notice
  by Sonic; or (ii) the existence of factors such as malfeasance or gross negligence
  entitling Sonic to terminate The Executive at common law. 

 4.2 Termination Other Than For Cause. Sonic may at any time,
  upon sixty (60) days advance notice to the Executive, forthwith terminate the
  services of The Executive other than for cause. In the case of termination other
  than for cause, all unvested options will immediately vest and Sonic will be
  liable to pay the Executive an amount equal to six (6) months salary and benefits
  otherwise due hereunder. This Agreement will terminate upon the death or disability
  (incapacity for not less than 120 days) of the Executive, which termination
  will be deemed to be “other than for cause”. 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 3 of 8 	 	 Executive Employment Agreement 
      

  

 

4.3 Change of Control. If at any time during the Term of this
  Agreement there is a change of control of Sonic, then the Executive shall have
  two months from the date of such change of control to elect whether or not to
  continue this Agreement. If the Executive elects to terminate this Agreement,
  then he shall give to Sonic written notice of such election and this Agreement
  shall terminate 30 days from the date such notice is delivered to Sonic. Upon
  such effective date of termination all unvested Options of The Executive will
  immediately vest and the Executive shall be entitled to receive from Sonic payment
  of an amount equal to six months salary otherwise due hereunder. In this Section,
  “change of control” means the acquisition by a person, alone or
  with its affiliates, associates or persons with whom such person is acting jointly
  or in concert (all within the meaning of the British Columbia Securities
  Act), following the date of this Agreement, of beneficial ownership of more
  than 50% of the total voting rights attaching to all classes of shares then
  outstanding of Sonic. 

 4.4 Other Payments. The Executive acknowledges and agrees that
  the payment and vesting of options in §4.3 is inclusive of any compensation,
  benefits or payments to which the Executive may be entitled. 

 4.5 Termination by Executive. The Executive may terminate the
  provision of services under this Agreement on not less than 60 days’ notice
  to Sonic, in which case the obligations of Sonic will be the same as though
  the services were terminated for cause. 

 4.6 Other Claims. The Executive acknowledges and agrees that
  the notice and provisions for compensation on termination provided in this Section
  are fair and reasonable and agrees that upon any termination of the Executive’s
  services by Sonic, or upon any termination of this Agreement by the Executive,
  the Executive will have no action, cause of action, claim or demand against
  Sonic or any other person as a consequence of such termination. 

 4.7 Resignation. On termination hereof, the Executive shall
  resign from any office or directorship of Sonic and any affiliate forthwith.

 5. CONFIDENTIAL INFORMATION AND WORK PRODUCT 

 5.1 Confidentiality. The Executive will not, during the Term
  or at any time after the termination of Executive ’s services by Sonic,
  use for themselves or others, divulge or convey to others, or aid or abet others
  to divulge or convey to others, any information, knowledge, data or property
  relating to the business of Sonic, or any of their affiliates, including information
  relating to employees, customers or suppliers, and intellectual property in
  any way obtained by him during his association with Sonic or in any way obtained
  by other employees of Sonic, unless (i) such information, knowledge, data or
  property is properly in the public domain other than through a breach of this
  Agreement; (ii) the Executive has received prior authorization by Sonic or such
  use divulgence or conveyance is reasonably necessary in the course of Executive
  ’s duties; or (iii) required by law. All intellectual property and work
  product conceived or developed by the Executive during the term hereof enures
  to Sonic absolutely. 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 4 of 8 	 	 Executive Employment Agreement 
      

  

 

5.2 Work Product. Notwithstanding anything else in this Agreement,
  it is expressly acknowledged and understood that all of the work product of
  the Executive which relates to any use of sonic energy and any environmental
  process (hereinafter referred to as the Sonic Field) while under contract to
  Sonic (both before and after the date of this Agreement) shall belong to Sonic
  absolutely and notwithstanding the generality of the foregoing, all patents,
  inventions, improvements, notes, documents, correspondence produced by the Executive
  during the term of this Agreement in the Sonic Field hereunder shall be the
  exclusive property of Sonic. The Executive further agrees to execute without
  delay or request for further consideration any necessary patent assignments,
  conveyance or other documents and assurances as may be necessary to transfer
  all rights to same to Sonic. In the event of the termination of the Executive
  for any reason hereunder, the Executive shall promptly turn over to Sonic all
  of the foregoing intellectual property which is evidenced by any physical documentation
  (whether written, digital, magnetic, electronic or otherwise) or any other of
  Sonic’s assets or property in his possession or under his control. 

 6. SURVIVAL OF COVENANTS 

 6.1 Except as otherwise specifically provided herein and notwithstanding
  the termination of the services of the Executive or termination of this Agreement,
  the covenants, representations and warranties contained in §5 and §7
  hereof will survive such termination and will continue in force and effect for
  the benefit of Sonic for a time period unlimited in duration. 

 7. NON-COMPETITION COVENANTS 

 7.1 Definitions. In this Section: 

 “Business” means the business carried on or intended to carry
  on by Sonic and its affiliates relating to sonoprocessing and its application
  to environmental remediation activities; 

 “Competitive Business” means any business which is involved in
  the development or exploitation of technologies using sonoprocessing or engaged
  in PCB destruction; 

 “Customer” means any person who has been a customer of Sonic or
  its affiliates at any time within a period of one year prior to the date of
  termination or expiration of this Agreement; 

 “Restricted Area” means North America; Japan, Germany, UK or any
  area that Sonic its affiliates or predecessor companies have had correspondence
  with regarding sonoprocessing and its application to environmental remediation.

 “Restricted Period” means two years from the date of termination
  of this Agreement whether by expiry or voluntary or involuntary termination.

 7.2 Non-Competition. The Executive will not, during the Restricted
  Period and within the Restricted Area, 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 5 of 8 	 	 Executive Employment Agreement 
      

  

 

	 	 (a)      	 directly or indirectly carry on, engage in or participate in, any Competitive
      Business either alone or in partnership or jointly or in conjunction with
      any other person; 
	 
	 	 (b)      	 directly or indirectly assist (as principal, beneficiary, director, shareholder,
      partner, nominee, executor, trustee, agent, servant, employee, independent
      contractor, supplier, consultant, lender, guarantor, financier or in any
      other capacity whatever) any person to carry on, engage in or participate
      in, a Competitive Business; and 
	 
	 	 (c)      	 have any direct or indirect interest or concern (as principal, beneficiary,
      director, shareholder, partner, nominee, executor, trustee, agent, servant,
      employee, consultant, independent contractor, supplier, creditor or in any
      other capacity whatever) in or with any person, if any part of the activities
      of such person consists of carrying on, engaging in or participating in
      a Competitive Business except holding securities of a public company constituting
      less than 10% of its outstanding share capital; 

 7.3 Non-Solicitation. During the Restricted Period and within
  the Restricted Area, the Executive will not: 

	 	 (a)	 directly or indirectly solicit any Customer; 
	 
	 	 (b)	 directly or indirectly assist (whether as principal, beneficiary, servant,
      director, shareholder, partner, nominee, executor, trustee, agent, employee,
      independent contractor, supplier, consultant, lender, financier or in any
      other capacity whatever) any person directly or indirectly to solicit any
      Customer; or 
	 
	 	 (c)	 have any direct or indirect interest or concern (be it as principal,
      beneficiary, director, shareholder, partner, nominee, executor, trustee,
      agent, servant, employee, consultant, independent contractor, supplier,
      creditor or in any other capacity whatever) in or with any person if any
      of the activities of which person consists of soliciting any Customer except
      holding securities of a public company constituting less than 10% of its
      outstanding share capital; 

 if such solicitation would, directly or indirectly, be intended to result
  in a sale of any product or service to such Customer and is directly or indirectly
  competitive or potentially competitive with any product or service then produced
  by the Business. 

 7.4 Employees, etc. The Executive will not during the Restricted
  Period, directly or indirectly, induce any individual who to his knowledge is
  then employed by Sonic, or any of its subsidiaries, to leave the employ of Sonic
  or any of its subsidiaries without the prior written consent of Sonic. 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 6 of 8 	 	 Executive Employment Agreement 
      

  

 

7.5 Covenants Reasonable. The Executive agrees that: 

	 	 (a)      	 the covenants in this Agreement are reasonable in the circumstances and
      are necessary to protect Sonic; and 
	 
	 	 (b)      	 the breach by him of any of the provisions of this Agreement would cause
      serious and irreparable harm to Sonic and its shareholders which could not
      adequately be compensated for in damages in the event of a breach by him
      of such provisions or an order of injunction being issued against him restraining
      him from any further breach of such provisions and agrees that such injunction
      may be issued against him without the necessity of an undertaking as to
      damages by Sonic or its shareholders; the provisions of this section shall
      not be construed so as to be in derogation of any other remedy which Sonic
      or any of its shareholders may have in the event of such a breach. 

 7.6 Covenants Independent. The existence of any claim or cause
  of action of the Executive against Sonic or any of its shareholders will not
  constitute a defence to the enforcement by Sonic or any of its shareholders
  of the provisions of this Agreement. 

 7.7 Invalidity. In the event that any term or provision of this
  Agreement shall, to any extent, be invalid or unenforceable, the remaining terms
  and provisions of this Agreement shall not be affected thereby and shall be
  valid and enforceable to the fullest extent permitted by law;. 

 7.8 Rights in Addition. The rights and remedies of Sonic or
  any of its shareholders hereunder are in addition to and not in substitution
  for any other rights of remedies which they may have at any time against the
  Executive, at law or in equity. 

 8. SUCCESSORS AND ASSIGNS 

 8.1 This Agreement will ensure to the benefit of, and be binding upon,
  the parties hereto and their legal representatives, successors and permitted
  assigns except that no claims may be asserted by the legal representatives,
  successors and assignees of the Executive in respect of compensation or other
  benefits for periods following the death or total incapacity of the Executive
  other than those provided for in this Agreement. 

 9. NOTICES 

 9.1 Any notice required or permitted to be given under this Agreement
  will be deemed to have been duly given only if such notice is in writing and
  is delivered. 

 10. GOVERNING LAW 

 10.1 This Agreement is and will be deemed to be made in British Columbia
  and for all purposes will be governed exclusively by and construed and enforced
  in accordance with the laws prevailing in British Columbia, and the rights and
  remedies of the parties will be determined in accordance with those laws. 

	 	Sonic	Executive
	 	“Adam Sumel” 	“James
      Hill”

	

        Page 7of 8 	 	 Executive Employment Agreement 
      

  

 

11. SEVERABILITY 

 11.1 If any provision of this Agreement is at any time unenforceable
  or invalid for any reason it will be severable from the remainder of this Agreement
  and, in its application at that time, this Agreement will be construed as though
  such provision was not contained herein and the remainder will continue in full
  force and effect and be construed as if this Agreement had been executed without
  the invalid or unenforceable provision. 

 12. INDEPENDENT LEGAL ADVICE 

 12.1 The parties hereto acknowledge that they each received, or waived
  their right to receive, independent legal advice in relation to the terms and
  conditions of this Agreement. 

 13. ENTIRE AGREEMENT 

 13.1 This Agreement represents the entire agreement between
  the parties and supercedes any and all previous agreements, discussions and
  negotiations, both verbal and written. 

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

 For Sonic

	 Per:  	 /s/ Adam Sumel  
	 	  	 
	  	 Mr. Adam Sumel, President & CEO  	 
	  	 Sonic Environmental Solutions Inc.  
	 
	 For the Executive  
	 	 
	 Per:  	 /s/ Dr. James Hill  
	 	  	 
	  	 Dr. James HillFiled by Automated Filing Services Inc. (604) 609-0244 - Sonic Environmental Solutions Inc. - Exhibit 4.17

 

EXHIBIT 4.17 

 EXECUTIVE EMPLOYMENT AGREEMENT 

THIS AGREEMENT made as of this the 8’th day of February, 2005. 

BY AND BETWEEN: 

  
     Sonic Environmental Solutions Inc. a company incorporated under
      the laws of Canada, to be continued under the laws of British Columbia,
      with business offices at 1778 West 2nd Avenue, Vancouver, British
      Columbia V6J 1H6 

     (hereinafter referred to as “Sonic”)

  

AND: 

  
     Mr. Paul Austin, a marketing the Executive and management professional
      located at 965 Essex Road, North Vancouver, British Columbia, V7J 2J8. 

     (hereinafter referred to as the “Executive ”) 

  

WHEREAS: 

	 (A)      	 Sonic is engaged in the business of developing and marketing sonoprocessing
      technology and services; and 
	 
	 (B)      	 The Executive is engaged in providing marketing and the Executive management
      services, specifically relating to the commercialization of technologies;
      and 
	 
	 (C)      	 Sonic and the Executive have mutually agreed the Executive shall be employed
      under the terms of this Agreement which is to supersede all prior agreements,
      discussions and negotiations between the parties; 

NOW THEREFORE, in consideration of the mutual promises and covenants as hereinafter set forth, the parties hereto agree as follows: 

 1. CONTRACT, TERMS AND DUTIES

 1.1 Contract. Sonic .hereby agrees to employ the Executive and
  the Executive hereby accepts and undertakes to be employed by Sonic upon and
  subject to the terms and conditions of this Agreement. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 1 of 10 
		
February 8th , 2005 
	

 

1.2 Term. The term for the provision of services
  by the Executive to Sonic will be for two year period commencing on October
  12th 2004 (the “Term”) and upon expiry of the Term this
  Agreement shall continue until the Agreement is superceded by a new agreement.

 1.3 Title. The Executive will have the title
  of Vice President and report to the Executive Vice President of Sonic. 

 1.4 Duties and Milestones. The Executive will
  provide such executive management services as may be required by Sonic as part
  of the executive management team of Sonic in whatever capacity required. The
  Executive will specifically assist in directing the marketing and commercialization
  of Sonic’s PCB Soil Remediation Sonoprocess and other applications of
  Sonic’s Platform Technology of strategic importance to Sonic. The Executive
  will also assist in directing the corporate operations of Sonic. The responsibilities
  of the Executive shall include the accomplishment of the following: 

	 	 (a)      	 Development and implementation of a formal marketing
        plan based with specific activities and measurable results, specifically
        prioritizing the target territories and recommending sales infrastructure
        accordingly. 

	 
	 	 (b)      	 Determine the most effective means to sell and deliver
        Sonic technologies and services within each targeted territory. This includes
        developing the partnering and sourcing strategy for a particular territory
        or geography and securing the partnering and sourcing relationships. 

	 
	 	 (c)      	 Plan and schedule marketing activities in each sales
        territory that support the sales efforts and communicate, educate and
        demonstrate the benefits of Sonics technologies, processes, services and
        know-how to potential customers. This may include seminars, speaking engagements,
        visits to potential customers, association outreach, engagement of industry
        research analysts and trade journals, and government liaison. 

	 
	 	 (d)      	 Work with sales, business development and company
        executives in pilot (first in a new market or territory) sales in each
        territory to determine sales development opportunities, including general
        customer profiles and identified prospects, and ensure that a dynamic
        sales funnel exists at all times based on prioritized opportunities. This
        may include the preparation and submission of major company sales proposals
        as required. 

	 
	 	 (e)      	 Assist in the development of promotions to ensure
        that they are part of a fully integrated marketing communication plan
        and aligned with the company’s branding, education and market awareness
        goals both corporately and for investor relations. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 2 of 10 
		
February 8th , 2005 
	

 

	 	 (f)      	 Create and/or edit external marketing materials
        including solution brochures, advertising (print and on-line), whitepapers,
        web content, press releases and sales presentations. Work with Investor
        Relations and company executives to ensure company positioning and message
        is consistent with corporate and investor expectations. 

	 
	 	 (g)      	 Ensure all marketing collateral (e.g. company website,
        sales presentations, print and on-line advertising campaigns, sales proposals,
        customer newsletters, and other customer/market touch points) have a common
        look and feel and ensure maximum conversion of inquiries to qualified
        leads and eventual sales. 

	 
	 	 (h)      	 Oversee and ensure active management of any agency
        or other creative vendor relationships including completion of creative
        briefs and budget management. 

	 
	 	 (i)      	 Conduct ongoing competitive analysis and respond
        with tactical changes to the marketing mix as required. 

	 
	 	 (j)      	 Participate with other members of the senior management
        team and company executives in the long-term strategic planning of Sonic.
      

	 
	 	 (k)      	 Provide market analysis, market sizing and customer/industry
        penetration strategies and associated on-going programs for new targeted
        accounts and new vertical industries where the sonic generator Platform
        Technology could be applied. 

	 
	 	 (l)      	 Assist in preparation for submissions to Canadian
        Federal Government’s SDTC program for new sonic generator Platform
        Technology applications. 

	 
	 	 (m)      	 Assist in updating the Sonic business plan. 

1.5 General Diligence. During the Term of this Agreement, the Executive will 

	 	 (a)      	 diligently provide and perform the services arising
        under this Agreement; and 

	 
	 	 (b)      	 provide the services at the specific times and days
        as reasonably directed by Sonic, excepting holidays, absence due to sickness
        and other authorized absences as set out in this Agreement. 

 1.6 General Representation and Consent.  The
  Executive represents to Sonic that this Agreement does not conflict with any
  agreement to which the Executive is subject. The Executive is not under any
  obligation or restriction due to any former contractor, employer or other person
  with respect to his know-how, business and customer contacts and like matters.
  The Executive will accurately complete any necessary personal information form
  required by a stock exchange or other regulatory authority, and consents to
  Sonic completing any background or reference checks it deems necessary or desirable.
  The Executive represents the accuracy and completeness of all information supplied
  to Sonic in any resume or other document. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 3 of 10 
		
February 8th , 2005 
	

 

2. COMPENSATION and FACILITIES 

 2.1 Payment. Sonic will pay the Executive an
  annual salary of $120,000 paid semi-monthly in arrears and to be reviewed
  after 12 months. In addition the Executive will be eligible to receive a performance
  bonus based on the revenues of the Company and the performance bonus will be
  set for each fiscal year. For the fiscal year commencing January 1st
  2005 the performance bonus will be as follows, subject to approval and modification
  by the Board: 

  	 For each international (outside Canada) contract booked by the Company
      as a result of a significant contribution by the Executive, the Executive
      will receive $10,000 (the “Booking Bonus”) upon signing
      of a contract, to be refunded to the Company in the event that the Contract
      is cancelled by the client; and

        
	 For international revenues (outside Canada) received by the Company as
      a result of contracts resulting in a Booking Bonus being paid to the Executive,
      the Executive will receive a bonus of one percent (1%) of revenues (the
      “Revenue Bonus) payable in the fiscal quarter following receipt of
      payment of the revenues by the Company.

        
	 Payment of Revenue Bonuses shall be deferred to the extent that payment
      of all bonuses by the Company would represent more than fifty percent (50%)
      of the net profits of the Company and the amount deferred shall be prorated
      portion of the total deferment on all eligible bonuses payable by the Company
      sufficient to meet this condition.

        
	 Where the Company accepts an international contract booking with prices
      resulting in less than normal projected gross margins (estimated at fifty
      percent (50%)) then revenue bonuses shall be reduced proportionate to the
      reduced margin. For example if the gross margin is 30% this is a 40% reduction
      and the Revenue Bonus would be similarly reduced by 40%. However, where
      actual gross margins earned by the Company fail to meet the projected gross
      margins the Revenue Bonus shall be payable in full.

  2.2 Annual Vacation. The Executive shall earn
    3 weeks annual paid vacation for each year of employment to be taken at mutually
    agreeable times, and vacation may be taken in advance of earned entitlement
    and may be accumulated for up to 12 months. 

 2.3 Other Benefits. In addition to other compensation
  set out in this Agreement, the Executive will be able to participate in such
  extended health, medical, dental, disability insurance or other benefit plans
  or retirement rights to be established by Sonic, and amended from time to time
  and made available to employees of Sonic. 

 2.4 Stock Options. The Executive will be granted
  90,000 options to purchase Sonic common shares (the “Options”) within
  one month of commencing employment at the market closing share price on the
  day granted and vesting on the following conditions and schedule: 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 4 of 10 
		
February 8th , 2005 
	

 

	 	 (a)      	 30,000 six months after the commencement of the Term of this Agreement
      subject to the completion of a marketing strategy, marketing plan and the
      achievement of a sales funnel backlog; and 
	 
	 	 (b)      	 30,000 twelve months after the commencement of the Term of this Agreement
      subject to the successful penetration of the USA market as evidenced by
      early sales and a healthy sales funnel; and 
	 
	 	 (c)      	 30,000 eighteen months after the commencement of the Term of this Agreement
      subject to substantial progress towards two major international partnerships
      for the Sonic PCB Sonoprocess. 

 2.5 Expenses. Sonic will provide reasonable
  expense advances upon request and will reimburse reasonable out-of-pocket business
  expenses incurred by the Executive on behalf of Sonic upon presentation of appropriate
  vouchers and receipts. 

 2.6 Office Facilities. Sonic will make available to
  the Executive an executive office equipped with telephone, cellular telephone,
  internet computer access, lap top computer and remote access the Executive’s
  home offices. 

 3. EXCLUSIVITY OF SERVICES 

 3.1 Exclusivity. The Executive will devote such
  time, attention, energies and best efforts to Sonic as may be reasonably required
  and will not, without the written consent of Sonic, during the Term, engage
  in other business activities (whether or not such business activity is pursued
  for gain, profit, or other pecuniary advantage) which unreasonably interferes
  with the provision of services to Sonic by the Executive hereunder. 

 4. TERMINATION 

 4.1 Termination for Cause. Sonic may, at any
  time, without advance notice to the 

 Executive , or payment of any compensation in lieu of notice,
  forthwith terminate the services of the Executive for cause. The term “cause”
  means (i) a persistent breach of this Agreement by the Executive and failure
  by the Executive to cure the breach within thirty days following written notice
  by Sonic; or (ii) the existence of factors such as malfeasance or gross negligence
  entitling Sonic to terminate The Executive at common law. 

 4.2 Termination Without Cause During Seven Month Probationary
  Period. Sonic may terminate this Agreement at any time during the first
  seven (7) months of the Term if, in its reasonable opinion, the Executive has
  not performed satisfactorily and Sonic will be liable to pay the Executive an
  amount equal to two months salary otherwise due hereunder. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
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4.3 Termination Without Cause after Seven Month Probationary
  Period. Sonic may at any time, upon 60 days advance notice to the Executive
  , forthwith terminate the services of the Executive other than for cause. In
  the case of termination other than for cause after the Probationary Period,
  all unvested options will immediately vest and Sonic will be liable to pay the
  Executive an amount equal to six months salary and benefits otherwise due hereunder.
  This Agreement will terminate upon the death or disability (incapacity for not
  less than 120 days) of Executive , which termination will be deemed to be “other
  than for cause”. 

 4.4 Change of Control. If at any time during
  the Term of this Agreement there is a change of control of Sonic, then the Executive
  shall have two months from the date of such change of control to elect whether
  or not to continue this Agreement. If the Executive elects to terminate this
  Agreement, then he shall give to Sonic written notice of such election and this
  Agreement shall terminate 30 days from the date such notice is delivered to
  Sonic. Upon such effective date of termination all unvested Options of The Executive
  will immediately vest and the Executive shall be entitled to receive from Sonic
  payment of an amount equal to six months salary otherwise due hereunder. In
  this Section, “change of control” means the acquisition by a person,
  alone or with its affiliates, associates or persons with whom such person is
  acting jointly or in concert (all within the meaning of the British Columbia
  Securities Act), following the date of this Agreement, of beneficial
  ownership of more than 50% of the total voting rights attaching to all classes
  of shares then outstanding of Sonic. 

 4.5 Other Payments. The Executive acknowledges
  and agrees that the payment and vesting of options in §4.3 is inclusive
  of any compensation, benefits or payments to which the Executive may be entitled.

 4.6 Termination by Executive . The Executive
  may terminate the provision of services under this Agreement on not less than
  60 days’ notice to Sonic, in which case the obligations of Sonic will
  be the same as though the services were terminated for cause. 

 4.6 Other Claims. The Executive acknowledges
  and agrees that the notice and provisions for compensation on termination provided
  in this Section are fair and reasonable and agrees that upon any termination
  of the Executive ’s services by Sonic, or upon any termination of this
  Agreement by the Executive , the Executive will have no action, cause of action,
  claim or demand against Sonic or any other person as a consequence of such termination.

 4.7 Resignation. On termination hereof, the
  Executive shall resign from any office or directorship of Sonic and any affiliate
  forthwith. 

 5. CONFIDENTIAL INFORMATION AND WORK PRODUCT 

 5.1 Confidentiality. The Executive will not,
  during the Term or at any time after the termination of Executive ’s services
  by Sonic, use for themselves or others, divulge or convey to others, or aid
  or abet others to divulge or convey to others, any information, knowledge, data
  or property relating to the business of Sonic, or any of their affiliates, including
  information relating to employees, customers or suppliers, and intellectual
  property in any way obtained by him 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
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during his association with Sonic or in any way obtained by
  other employees of Sonic, unless (i) such information, knowledge, data or property
  is properly in the public domain other than through a breach of this Agreement;
  (ii) the Executive has received prior authorization by Sonic or such use divulgence
  or conveyance is reasonably necessary in the course of Executive ’s duties;
  or (iii) required by law. All intellectual property and work product conceived
  or developed by the Executive during the term hereof enures to Sonic absolutely.

 5.2 Work Product. Notwithstanding anything else
  in this Agreement, it is expressly acknowledged and understood that all of the
  work product of the Executive which relates to any use of sonic energy and any
  environmental process (hereinafter referred to as the Sonic Field) while under
  contract to Sonic (both before and after the date of this Agreement) shall belong
  to Sonic absolutely and notwithstanding the generality of the foregoing, all
  patents, inventions, improvements, notes, documents, correspondence produced
  by the Executive during the term of this Agreement in the Sonic Field hereunder
  shall be the exclusive property of Sonic. The Executive further agrees to execute
  without delay or request for further consideration any necessary patent assignments,
  conveyance or other documents and assurances as may be necessary to transfer
  all rights to same to Sonic. In the event of the termination of the Executive
  for any reason hereunder, the Executive shall promptly turn over to Sonic all
  of the foregoing intellectual property which is evidenced by any physical documentation
  (whether written, digital, magnetic, electronic or otherwise) or any other of
  Sonic’s assets or property in his possession or under his control. 

 6. SURVIVAL OF COVENANTS 

 6.1 Except as otherwise specifically provided herein
  and notwithstanding the termination of the services of the Executive or termination
  of this Agreement, the covenants, representations and warranties contained in
  §5 and §7 hereof will survive such termination and will continue in
  force and effect for the benefit of Sonic for a time period unlimited in duration.

 7. NON-COMPETITION COVENANTS 

 7.1 Definitions. In this Section: 

 “Business” means the business carried on or intended
  to carry on by Sonic and its affiliates relating to sonoprocessing and its application
  to environmental remediation activities; 

 “Competitive Business” means any business which
  is involved in the development or exploitation of technologies using sonoprocessing
  and its application to environmental remediation; 

 “Customer” means any person who has been a customer
  of Sonic or its affiliates at any time within a period of one year prior to
  the date of termination or expiration of this Agreement; 

 “Restricted Area” means North America; Japan,
  Germany, UK or any area that Sonic its affiliates or predecessor companies have
  had correspondence with regarding sonoprocessing and its application to environmental
  remediation. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
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“Restricted Period” means two years from the date
  of termination of this Agreement whether by expiry or voluntary or involuntary
  termination. 

 7.2 Non-Competition. The Executive will not,
  during the Restricted Period and within the Restricted Area, 

	 	 (a)      	 directly or indirectly carry on, engage in or participate
        in, any Competitive Business either alone or in partnership or jointly
        or in conjunction with any other person; 

	 
	 	 (b)      	 directly or indirectly assist (as principal, beneficiary,
        director, shareholder, partner, nominee, executor, trustee, agent, servant,
        employee, independent contractor, supplier, consultant, lender, guarantor,
        financier or in any other capacity whatever) any person to carry on, engage
        in or participate in, a Competitive Business; and 

	 
	 	 (c)      	 have any direct or indirect interest or concern
        (as principal, beneficiary, director, shareholder, partner, nominee, executor,
        trustee, agent, servant, employee, consultant, independent contractor,
        supplier, creditor or in any other capacity whatever) in or with any person,
        if any part of the activities of such person consists of carrying on,
        engaging in or participating in a Competitive Business except holding
        securities of a public company constituting less than 10% of its outstanding
        share capital; 

7.3 Non-Solicitation. During the Restricted Period and within the Restricted Area, the Executive will not: 

	 	 (a)      	 directly or indirectly solicit any Customer; 

	 
	 	 (b)      	 directly or indirectly assist (whether as principal,
        beneficiary, servant, director, shareholder, partner, nominee, executor,
        trustee, agent, employee, independent contractor, supplier, consultant,
        lender, financier or in any other capacity whatever) any person directly
        or indirectly to solicit any Customer; or 

	 
	 	 (c)      	 have any direct or indirect interest or concern
        (be it as principal, beneficiary, director, shareholder, partner, nominee,
        executor, trustee, agent, servant, employee, consultant, independent contractor,
        supplier, creditor or in any other capacity whatever) in or with any person
        if any of the activities of which person consists of soliciting any Customer
        except holding securities of a public company constituting less than 10%
        of its outstanding share capital; 

 if such solicitation would, directly or indirectly, be intended
  to result in a sale of any product or service to such Customer and is directly
  or indirectly competitive or potentially competitive with any product or service
  then produced by the Business. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 8 of 10 
		
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7.4 Employees, etc. The Executive will not during
  the Restricted Period, directly or indirectly, induce any individual who to
  his knowledge is then employed by Sonic, or any of its subsidiaries, to leave
  the employ of Sonic or any of its subsidiaries without the prior written consent
  of Sonic. 

7.5 Covenants Reasonable. The Executive agrees that: 

	 	 (a)      	 the covenants in this Agreement are reasonable in
        the circumstances and are necessary to protect Sonic; and 

	 
	 	 (b)      	 the breach by him of any of the provisions of this
        Agreement would cause serious and irreparable harm to Sonic and its shareholders
        which could not adequately be compensated for in damages in the event
        of a breach by him of such provisions or an order of injunction being
        issued against him restraining him from any further breach of such provisions
        and agrees that such injunction may be issued against him without the
        necessity of an undertaking as to damages by Sonic or its shareholders;
        the provisions of this section shall not be construed so as to be in derogation
        of any other remedy which Sonic or any of its shareholders may have in
        the event of such a breach. 

 7.6 Covenants Independent. The existence of
  any claim or cause of action of the Executive against Sonic or any of its shareholders
  will not constitute a defence to the enforcement by Sonic or any of its shareholders
  of the provisions of this Agreement. 

 7.7 Invalidity. In the event that any term or
  provision of this Agreement shall, to any extent, be invalid or unenforceable,
  the remaining terms and provisions of this Agreement shall not be affected thereby
  and shall be valid and enforceable to the fullest extent permitted by law;.

 7.8 Rights in Addition. The rights and remedies
  of Sonic or any of its shareholders hereunder are in addition to and not in
  substitution for any other rights of remedies which they may have at any time
  against Executive , at law or in equity. 

 8. SUCCESSORS AND ASSIGNS 

 8.1 This Agreement will ensure to the benefit of, and
  be binding upon, the parties hereto and their legal representatives, successors
  and permitted assigns except that no claims may be asserted by the legal representatives,
  successors and assignees of the Executive in respect of compensation or other
  benefits for periods following the death or total incapacity of the Executive
  other than those provided for in this Agreement. 

 9. NOTICES 

 9.1 Any notice required or permitted to be given under
  this Agreement will be deemed to have been duly given only if such notice is
  in writing and is delivered. 

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 9 of 10 
		
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10. GOVERNING LAW 

 10.1 This Agreement is and will be deemed to be made
  in British Columbia and for all purposes will be governed exclusively by and
  construed and enforced in accordance with the laws prevailing in British Columbia,
  and the rights and remedies of the parties will be determined in accordance
  with those laws. 

 11. SEVERABILITY 

 11.1 If any provision of this Agreement is at any time
  unenforceable or invalid for any reason it will be severable from the remainder
  of this Agreement and, in its application at that time, this Agreement will
  be construed as though such provision was not contained herein and the remainder
  will continue in full force and effect and be construed as if this Agreement
  had been executed without the invalid or unenforceable provision. 

 12. INDEPENDENT LEGAL ADVICE 

 12.1 The parties hereto acknowledge that they each
  received, or waived their right to receive, independent legal advice in relation
  to the terms and conditions of this Agreement. 

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

For Sonic 

	 Per:  	 /s/ James Hill           
    
	  	 Dr. James Hill, Executive Vice President  
	  	Sonic Environmental Solutions Inc.

For the Executive 

	
Per: 
		 /s/ Paul Austin          
       
	 

		
Mr. Paul Austin 
	

	 	Sonic	Executive
	 	“James
      Hill” 	“Paul
      Austin”

	
Page 10 of 10 
		 February 8th , 2005

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