Document:

Exhibit 10.35

 

	
   

  	
   

  	
  Initials: Contractor 

  	
  /s/
  J.A.

  
	
   

  	
   

  	
  Accuray 

  	
  /s/
  C.D.M.

  

 

	
  

  
	
  ACCURAY

  

 

INDEPENDENT CONTRACTOR AGREEMENT

 

This Independent Contractor Agreement (“Agreement”)
is made effective as of April 1, 2008 by and between Accuray Incorporated,
a Delaware corporation (the “Company”), and John Adler, M.D. (“Contractor” and,
together with the Company, the “Parties”). The Company desires to retain
Contractor as an independent contractor to perform certain services for the
Company and Contractor is willing to perform such services, on terms set forth
more fully below. In consideration of the mutual promises contained herein, the
Parties agree as follows:

 

1.             Services.

 

During
the term of this agreement, Contractor will provide services (the “Services”)
to the Company as described on Exhibit A attached to this
Agreement. Contractor shall use his best efforts to perform the Services to the
satisfaction of the Company and by the completion dates specified by the
Company. Contractor shall not perform any Services for the Company other than
as specifically authorized in Exhibit A.

 

2.             Independent
Contractor Status.

 

It
is the Parties’ intent that Contractor at all times, and with respect to all
Services covered by this Agreement function as and remain an independent
contractor, and not an employee or officer of the Company, and neither Party
shall represent to third parties that Contractor is an employee or officer of
the Company.

 

(a)           Contractor
shall be responsible for the payment of all taxes on amounts received from the
Company for the Services. The Company will regularly report amounts paid to
Contractor by filing Form 1099-MISC with the Internal Revenue service, as
required by law. No part of Contractor’s fees will be subject to withholding by
the Company for payment of any social security, federal, state or other
employee payroll taxes. Contractor agrees to indemnify and hold the Company
harmless from any liability for, or assessment of, any such taxes imposed on
the Company by relevant taxing authorities.

 

(b)           Contractor
shall retain the right to perform services for others during the term of this
Agreement.

 

(c)           Contractor will
determine the method, details, and means of performing the Services. The
Company shall have no right to, and shall not control, the manner or determine
the method of accomplishment of the Services, though it may define the Services
to be performed. Such Services may be amended, from time-to-time, by the
Parties by written agreement, signed by the Contractor and the Company.

 

	
  INDEPENDENT
  CONTRACTOR AGREEMENT

  	
   

  	
  ACCURAY CONFIDENTIAL

  
	
  John
  Adler, M.D. — 2008, rev. 004, 03.13.08

  	
   

  	
   

  

 

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(d)             Contractor may,
at Contractor’s own expense, employ such assistants as the Contractor may deem
necessary to perform the Services. The Company shall not control, direct or
supervise the work of Contractor’s assistants or employees in the performance
of Services. The Contractor assumes full and sole responsibility for the
quality of Services provided by the Contractor’s assistants or employees, for
the payment of all compensation and expenses of these assistants and employees,
for state and federal income taxes and other applicable payroll taxes and
withholding that may be required with respect to such assistants or employees,
and for the provision of all benefits and insurance, including without
limitation, Worker’s Compensation Insurance, to such assistants or employees.
Contractor shall furnish the Company with proof of Worker’s Compensation
Insurance coverage for all persons who provide Services pursuant to this
Agreement.

 

(e)             Contractor
shall be responsible for all expenses incurred in the execution of Contractor’s
responsibilities pursuant to this Agreement, including, without limitation, all
travel (including airfare and lodging), entertainment and dining expenses. No fines,
taxes, bonds or fees imposed against Contractor, or costs of
Contractor doing business, shall be reimbursable by the Company.

 

(i)            Contractor shall not be
eligible to participate in any fringe benefit program or any benefit plan of the Company.

 

(g)           Contractor will
have no authority to enter into contracts that bind the Company or to create
obligations on the part of the Company without the prior written authorization
of the Company.

 

(h)           Contractor
shall receive no office or administrative support from Company.

 

(i)            Contractor
will, in the performance of his duties hereunder, comply with all policies and
procedures of the Company that are applicable to independent contractors and
consultants, including but not limited to the Company’s Code of Conduct and
Ethics and the Company’s Code of Conduct for Interaction with Healthcare
Professionals.

 

3.             Fees.

 

As
consideration for the Services to be provided by Contractor, the Company will
compensate Contractor as described in Exhibit B to this Agreement.
Company will pay Contractor Contractor’s annual compensation in quarterly
installments of $41,775, such quarterly installments to be paid in advance of
each quarter beginning on the date on which this Agreement is signed by both
Parties and thereafter on the first business day of each quarter. Compensation
for Contractor’s Services shall be conditioned on the actual performance by
Contractor of Services and the Company’s receipt and approval of accurate and
detailed quarterly invoices, including records of time spent and Services
performed, from Contractor in the form attached hereto as Exhibit D.

 

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Contractor
shall submit such quarterly invoices for all Services performed by Contractor
during the applicable quarter two (2) weeks
prior to the end of such quarter (for example, for the first quarterly period
of this Agreement, April 1, 2008 to June 30, 2008, Contractor’s first
quarterly invoice will be due to Company no later than June 15, 2008). If
for any quarter, Contractor has not provided the level of Services required to
earn the full quarterly installment for such quarter, then the quarterly
installment for Contractor for the following quarter will be reduced in an
amount equal to the amount that Contractor was overcompensated for the
preceding quarter. If at the end of the term of this Agreement, Contractor has
never performed certain services, and Contractor’s failure to perform such
services has not been offset against any subsequent quarter’s installment, then
Contractor will reimburse Company the corresponding amount for the services not
performed within thirty (30) calendar days. The Parties acknowledge that
payment for the Services provided hereunder is consistent with the fair market
value of such Services and is not conditioned in any way on the volume or value
of any business (i) between the Company and any other party, or (ii) resulting,
directly or indirectly, from any of Contractor’s activities hereunder.

 

4.             Confidentiality.

 

(a)             Confidential
Information. “Confidential Information”
means Company proprietary information, technical data, trade secrets or
know-how, including, but not limited to, research, product plans, product
specifications, services, customers, customer lists, pipeline documents,
marketing plans and strategies, software, developments, inventions, processes,
formulas, technology, designs, drawings, engineering, hardware configuration
information, circuit board designs, logic designs for filters and/or circuit
boards, Company financials or other business information disclosed by the
Company either directly or indirectly in writing, orally, or by drawings or
inspection of parts or equipment. Confidential Information also includes any
other information designated by the Company as such upon its disclosure to the
Contractor.

 

(b)             Disclosure. Contractor
will not, during or subsequent to the term of this Agreement, use the Company’s
Confidential Information for any purpose whatsoever other than the performance
of the Services on behalf of the Company. Contractor will not disclose the
Company’s Confidential Information to any third party, and understands that
said Confidential Information shall remain the sole property of the Company.
Contractor further agrees to take all reasonable precautions to prevent any
unauthorized disclosure of such Confidential Information including, but not
limited to, having each employee of Contractor, if any, with access to any Confidential
Information, execute a nondisclosure agreement containing provisions in the
Company’s favor substantially similar to Sections 4, 5 and 6 of this Agreement.
Confidential Information does not include information which, upon disclosure to
Contractor is part of the public domain; can be established by written evidence
to have been in the possession of Contractor at the time of disclosure;
is received by Contractor from a third party without restriction
and without breach of this Agreement; or has become publicly known and made
generally available through no wrongful act of Contractor. If Contractor is
required to disclose Confidential Information by lawfully issued subpoena or by
an authorized order of a government agency, Contractor will immediately so inform

 

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the
Company, and will use best efforts to minimize the disclosure of such
Confidential Information and will consult with and assist the Company in
seeking a protective order prior to such disclosure.

 

(c)           Indemnity. Contractor
agrees that Contractor will not, during the term of this Agreement, improperly
use or disclose to the Company or any of its employees any proprietary
information or trade secrets of any former or current employer or other person
or entity with which Contractor has an agreement, or to which Contractor has a
duty, to keep in confidence information acquired by Contractor, and that
Contractor will not bring onto the premises of the Company any unpublished
document, proprietary information, or trade secret belonging to such employer,
person or entity unless consented to in writing by such employer, person or
entity. Contractor will indemnify the Company and hold it harmless from and
against all claims, liabilities, damages and expenses, including reasonable
attorneys’ fees and costs of suit, arising out of or in connection with any
violation or claimed violation of a third party’s rights resulting in whole or
in part from the Services provided by Contractor under this Agreement.

 

(d)           Third
Parties. Contractor recognizes that
the Company has received and in the future will receive from third parties
their confidential or proprietary information or trade secrets subject to a
duty on the Company’s part to maintain the confidentiality of such information
and to use it only for certain limited purposes. Contractor agrees that
Contractor owes the Company and such third parties, during the term of this
Agreement and thereafter, a duty to hold all such confidential or proprietary information
or trade secrets in the strictest confidence and not to disclose it to any
person, firm or corporation or to use it except as necessary in carrying out
the Services for the Company consistent with the Company’s agreement with such
third party.

 

(e)           Return
of Confidential Information.  Upon the
termination of this Agreement, or upon the Company’s earlier request,
Contractor will deliver to the Company all of the Company’s property and all
Confidential Information in tangible form that Contractor may have in
Contractor’s possession or control.

 

5.             Ownership.

 

(a)           Inventions. Contractor
agrees that all copyrightable material, notes, records, drawings, designs,
inventions, improvements, developments, discoveries and trade secrets
(collectively, “Inventions”) conceived, made or discovered by Contractor,
solely or in collaboration with others, during the period of this Agreement
which relate in any manner to the business of the Company that Contractor may
be directed to undertake, investigate or experiment with, or which Contractor
may become associated with as a result of work, investigation or
experimentation in the line of business of Company in performing the Services
hereunder (which Company and Contractor agree are related to Sales and
Marketing), are the sole property of the Company. Contractor further agrees to
assign (or cause to be assigned) and does hereby assign fully to the Company
all such Inventions and any copyrights, patents, mask work rights or other
intellectual property rights relating thereto.

 

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(b)             Assistance. Contractor
agrees to assist Company, or its designee, at the Company’s expense, in every
proper way to secure the Company’s rights in the Inventions and any copyrights,
patents, mask work rights or other intellectual property rights relating
thereto in any and all countries, including the disclosure to the Company of
all pertinent information and data with respect thereto, the execution of all
applications, specifications, oaths, assignments and all other instruments
which the Company shall deem necessary in order to apply for and obtain such
rights and in order to assign and convey to the Company, its successors,
assigns and nominees the sole and exclusive rights, title and interest in and
to such Inventions, and any copyrights, patents, mask work rights or other
intellectual property rights relating thereto. Contractor further agrees that
Contractor’s obligation to execute or cause to be executed, when it is in
Contractor’s power to do so, any such instrument or papers shall continue after
the termination of this Agreement.

 

(c)             License. Contractor
agrees that if in the course of performing the Services (which Company and
Contractor acknowledge are related to Sales and Marketing), Contractor
incorporates into any Invention developed hereunder any invention, improvement,
development, concept, discovery or other proprietary information owned by
Contractor or in which Contractor has an interest, the Company is hereby granted
and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide
license to make, have made, modify, use and sell such item as
part of or in connection with such Invention.

 

(d)             Agent. Contractor
agrees that if the Company is unable because of Contractor’s unavailability for
any reason to secure Contractor’s signature to apply for or to pursue any
application for any United States or foreign patents or mask work or copyright
registrations covering the Inventions assigned to the Company above, then
Contractor hereby irrevocably designates and appoints the Company and its duly
authorized officers and agents as Contractor’s agent and attorney-in-fact, to
act for and in Contractor’s behalf and stead to execute and file any such
applications and to do all other lawfully permitted acts to further the
prosecution and issuance of patents, copyright and mask work registrations
thereon with the same legal force and effect as if executed by Contractor.

 

6.             Originality
and Noninfringement.

 

Contractor
represents and warrants that all materials and Services provided hereunder will
be original with Contractor and that the use thereof by the Company or its
customers, representatives, distributors or dealers will not infringe any
patent, copyright, trade secret or other intellectual property right of any
third party. Contractor agrees to indemnify and hold the Company harmless
against any liability, loss, cost, damage, claims, demands or expenses
(including reasonable attorneys’ fees) of the Company or its customers,
representatives, distributors or dealers arising out of any infringement or
claim of infringement with respect to any materials or Services provided by
Contractor.

 

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7.             Reports.

 

Contractor
agrees that Contractor will, from time-to-time during the term of this
Agreement, keep the Company informed as to Contractor’s progress in performing
the Services hereunder and that Contractor will, as requested by the Company,
prepare written reports with respect thereto. The Parties understand that the
time required in the preparation of such written reports shall be considered
time devoted to the performance of Contractor’s Services.

 

8.             Conflicting
Obligations.

 

(a)             Performance. Contractor
acknowledges that Contractor will be available to perform the Services in a
timely and responsible manner, except for the occasional circumstance in which
a pre-existing clinical responsibility on the part of Contractor may conflict
with a new commitment requested by the Company, subject to the requirements of
the schedule of Services arranged by Company and Contractor pursuant to Section 1
of Exhibit A hereto. Failure to perform in a timely and responsible manner
shall be a breach of this Agreement.

 

(b)             No
Conflicts. Contractor represents and
warrants that Contractor has no outstanding agreement or obligation that is in
conflict with any provision of this Agreement, or that would preclude
Contractor from complying with the provisions hereof, except as disclosed in Exhibit C
hereto. Contractor further represents and warrants that Contractor will not
enter into any such conflicting Agreement during the term of this Agreement.

 

9.             Term
and Termination.

 

(a)           Commencement. This Agreement
will commence on the date first above written and will continue for a period of
one year (the “Initial Term”). Unless 30 days’ written notice of termination is
given by either Party prior to the expiration of the Initial Term, or any
subsequent Term, this Agreement shall renew for successive one-year periods.

 

(b)           Termination. This Agreement
may be terminated as follows:

 

(i)      Either Party may terminate
this Agreement with 90 days’ prior written notice to the other. Any such notice
shall be addressed to such Party at the address shown below or such other
address as such Party shall provide to the other, and shall be deemed given
upon delivery if personally delivered, on the next business day if sent via
overnight courier, or three days after deposit in the United States mail,
postage prepaid, registered or certified mail, return receipt requested.

 

(ii)     The Parties shall attempt to
amend this Agreement upon receipt of any Governmental Action in order to comply
with such Governmental Action. If the Parties, acting in good faith, are unable
to make the amendments necessary to comply with such Governmental

 

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Action,
or, alternatively, if either Party determines in good faith that compliance
with the Governmental Action is impossible or infeasible, this Agreement shall
terminate 10 days after one Party notifies the other of such fact. For purposes
of this Section 9(b)(ii), the term “Governmental Action” shall mean any
legislation, regulation, rule or procedure passed, adopted or implemented
by any federal, state or local government or legislative body or any private
agency, or any notice of a decision, finding, interpretation or action by any
governmental or private agency, court or other third party which, in the
opinion of counsel to the Company, because of the arrangement between the
Parties pursuant to this Agreement, if or when implemented, would: (A) constitute
a violation of any federal, state or local law; or (B) subject either
Party, or any of their respective employees or agents, to civil or criminal
liability or prosecution on the basis of their participation in executing this
Agreement or performing their respective obligations under this Agreement.

 

(iii) If this Agreement is terminated for any
reason within one-year of the date first above written, the Parties shall not
enter into the same or substantially the same arrangement contemplated by this
Agreement during the period which is one (1) year following the date first
above written.

 

(c)           Survival. Upon such
termination, all rights and duties of the Parties toward each other shall cease
except:

 

(i)            that the
Company shall be obliged to pay, within 30 days of receipt of the Contractor’s
invoice, all amounts owing to Contractor for unpaid Services through the
termination date; and

 

(ii)           Sections 4, 5,
6, 9 and 11 shall survive termination of this Agreement.

 

10.          Assignment.

 

Neither
this Agreement nor any right hereunder or interest herein may be assigned or
transferred by the Company or the Contractor without the written consent of the
other.

 

11.          Arbitration
and Equitable Relief.

 

(a)           Arbitration. Except as
provided in Section 11(b) below, the Company and Contractor agree
that any dispute or controversy arising out of or relating to any
interpretation, construction, performance or breach of this Agreement shall be
settled by arbitration to be held in Santa Clara County, California before a
single, neutral arbitrator associated with the Judicial Arbitration and
Mediation Service (“JAMS”). The arbitrator shall be selected by the Parties or,
if the Parties are unable to agree, by JAMS, in accordance with its selection
practices. The arbitrator may grant injunctions or other relief in such dispute
or controversy. The decision of the arbitrator shall be final, conclusive, and
binding on the Parties to the arbitration. Judgment may be entered on the
arbitrator’s decision in any court of competent jurisdiction. Unless otherwise
required to

 

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preserve
the enforceability of this arbitration clause, the Company and Contractor shall
each pay one-half of the costs and expenses of such arbitration.

 

(b)           Equitable
Relief. Contractor agrees that it would be impossible or
inadequate to measure and calculate the Company’s damages from any breach of
the covenants set forth in Section 4 or 5 herein. Accordingly, Contractor
agrees that if Contractor breaches Sections 4 or 5, the Company will have
available, in addition to any other right or remedy available, the right to
obtain from any court of competent jurisdiction an injunction restraining such
breach or threatened breach and specific performance of any such provision.
Contractor further agrees that no bond or other security shall be required in
obtaining such equitable relief and Contractor hereby consents to the issuances
of such injunction and to the ordering of such specific performance.

 

12.              Miscellaneous.

 

(a)           Amendments
and Waivers. Any term of this Agreement may be amended or
waived only with the written consent of the Parties.

 

(b)           Entire
Agreement. This Agreement, including the Exhibits hereto,
constitutes the entire agreement of the Parties and supersedes and replaces all
oral negotiations and prior writings with respect to the subject matter hereof.

 

(c)           Notices. Any notice
required or permitted by this Agreement shall be in writing and shall be deemed
sufficient upon receipt, when delivered personally or by courier or overnight
delivery service, or three days after being deposited in the regular United
States mail as certified or registered mail (airmail if sent internationally)
with postage prepaid, if such notice is addressed to the party to be notified
at such party’s address or facsimile number as set forth below, or as
subsequently modified by written notice.

 

(d)           Governing
Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California, without
giving effect to its principles of conflict of laws.

 

(e)           Legal
Fees. If any dispute arises between the Parties with
respect to matters covered by this Agreement which leads to a proceeding,
pursuant to Section 11, to resolve such dispute, the prevailing party in
any such proceeding shall be entitled to receive its reasonable attorneys’
fees, expert witness fees and out-of-pocket costs incurred in connection with
such proceeding, in addition to any other relief to which it
may be entitled.

 

(f)            Severability. If one or
more provisions of this Agreement are held to be unenforceable under applicable
law, then such unenforceable provision shall be deemed modified so as to be
enforceable (or if not subject to modification then eliminated herefrom) for
the purpose of those procedures to the extent necessary to permit the remaining
provisions to be enforced.

 

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(g)             Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

 

(h)             Advice
of Counsel.  EACH
PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE
OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND HAS READ AND
UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT
SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR
PREPARATION HEREOF.

 

(i)              Compliance
with Laws.  The
Parties agree to abide by the Company’s compliance policies and all federal,
state or local laws, regulations, ordinances or other legal requirements in
connection with the performance of the Services hereunder. In addition, at all
times during this Agreement, Contractor shall have in effect all ILLEGIBLE permits and
authorizations for all local, state, federal and foreign governmental agencies
to the extent the same are necessary to the performance of the Services
hereunder and will verify all such licenses, permits and authorizations are in
place before performing any Services under this Agreement. Consultant shall not
perform any Services under this Agreement for which he does not hold all
necessary licenses, permits and authorizations and will hold the Company
harmless in all respects for any claims or actions resulting from Contractor’s
violation of this provision.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day
and year first written above.

 

	
  JOHN
  ADLER, M.D.

  	
   

  	
  ACCURAY,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature:  

  	
  /s/
  John Adler, M.D.

  	
   

  	
  Signature:

  	
  /s/
  Wade Hampton

  
	
   

  	
   

  	
   

  
	
  Name:
  

  	
  John
  Adler, M.D.

  	
   

  	
  Name:
  

  	
  Wade
  Hampton

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:
  

  	
  Contractor

  	
   

  	
  Title:  

  	
  SVP,
  Chief Sales Officer

  
	
   

  	
   

  	
   

  
	
  Address:
  

  	
  854
  Tolman Drive

  	
   

  	
  Address:
  

  	
  1310
  Chesapeake Terrace

  
	
   

  	
  Stanford,
  CA 94305

  	
   

  	
   

  	
  Sunnyvale, CA 94089

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:
  

  	
  (650)
  854-9626

  	
   

  	
  Telephone:
  

  	
  817-296-7096

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  

  	
  3/29/08

  	
   

  	
  Date:
  

  	
  4/1/08

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Signature:

  	
  /s/
  Christopher Mitchell

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  

  	
  Christopher
  Mitchell

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  

  	
  General
  Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:
  

  	
  1310
  Chesapeake Terrace

  
	
   

  	
   

  	
   

  	
   

  	
  Sunnyvale,
  CA 94089

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Telephone:
  

  	
  (408)
  789-4414

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:
  

  	
  4/1/08

  
																					

 

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EXHIBIT A

 

SERVICES

 

1.             Description of Services.

 

Contractor
will be present at and participate in VIP visits arranged by Company at
Stanford University Medical Center (“SUMC”). In addition, Contractor will
travel to and participate in both domestic and international sales visits as
requested by Company. Finally, Contractor will travel to and participate in
certain domestic tradeshows or symposiums which Company requests that
Contractor attend. As soon as practicable following the execution of this
Agreement, Contractor and the Company shall meet to schedule the specific
Services to be performed during the first calendar quarter that this Agreement
is in effect. Thereafter, Contractor and the Company shall meet at least thirty
(30) days in advance of the end of each calendar quarter to schedule the
Services to be performed during the subsequent calendar quarter.

 

2.             VIP Visits.

 

Contractor’s
duties and deliverables in connection with Contractor’s participation in
Company’s VIP visits at Accuray (up to two (2) visits per month with a
maximum of nine (9) visits
per year) will include:

 

2.1   Question
and Answer Sessions:   Contractor
will participate in a thirty (30) minute “Question and Answer” session during
the VIP visit at Accuray.

 

2.2   Lunches/Dinners:   Contractor will attend a
lunch or dinner meeting, as applicable, following the VIP visit.

 

3.             Sales Visits/Tradeshows/Symposiums.

 

Contractor’s
duties and deliverables in connection with Contractor’s travel to and
participation in sales visits and tradeshows will
include:

 

3.1   Domestic
Sales Visits/Tradeshows/Symposiums:   Contractor will travel to and attend domestic sales
visits, tradeshows, and symposiums as requested by Company, up to three (3) trips
per year, with one (1) trips lasting two (2) days and two (2) trips
lasting one (1) day.

 

3.2   Mexican
and Canadian Sales Visits:   One
(1) trip per year to Canada or Mexico lasting for
two (2) full days with customer.

 

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3.3   Europe and
Emerging Market Sales Visits:   Contractor
will travel to and attend sales visits in Europe and other international
emerging markets (for example, Canada, Mexico, Asia, and Latin America, or
other miscellaneous emerging markets) as requested by Company. At Company’s
option, these sales visits shall consist of:

 

	
  3.3.1

  	
  Two
  (2) trips per year to Europe.

  
	
   

  	
   

  
	
  3.3.2

  	
  One
  (1) trip lasting
  four (4) days (two (2) full days with customer, the remaining days
  as travel).

  
	
   

  	
   

  
	
  3.3.3

  	
  One
  (1) trip lasting
  five (5) days (three (3) full days with customer, the remaining
  days as travel).

  
	
   

  	
   

  
	
  3.3.4

  	
  Two
  (2) trips per year to Asia lasting five (5) days (three
  (3) full days with customer, the remaining days as travel).

  
	
   

  	
   

  
	
  3.3.5

  	
  One
  (1) trip per year
  to Latin America lasting five (5) days (three (3) full days with
  customer, the remaining days as travel).

  

 

 

4.             Notice.

 

To
the extent possible, Company shall use commercially reasonable efforts to
provide Contractor with at least three (3) weeks prior notice of any travel
required in connection with sales visits and attendance at trade shows and
symposiums.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

12

 

	
  

  
	
  ACCURAY

  

 

EXHIBIT B

 

COMPENSATION

 

1.             Compensation.

 

Contractor
shall be compensated for Services performed according to this Agreement as
follows:

 

1.1.          Compensation for VIP Visits and webcast
support:

 

	
  1.1.1.

  	
  Q &
  A Session:

  	
  $650
  per Q&A session

  
	
   

  	
   

  	
   

  
	
  1.1.2.

  	
  Lunch
  or Dinner:

  	
  $650
  per Lunch or Dinner

  
	
   

  	
   

  	
   

  
	
  1.1.3.

  	
  Webcast
  with Q&A

  	
  $650
  per session

  
	
   

  	
   

  	
   

  
	
  1.1.4.

  	
  Maximum
  Compensation:

  	
  $1,300

  
	
   

  	
   

  	
   

  
	
  1.1.5.

  	
  Maximum
  Annual Compensation:

  	
  $15,600
  per year

  
	
   

  	
   

  	
   

  
	
  1.1.6.

  	
  Maximum
  annual compensation for VIP Visits is based on nine (9) VIP visits and six
  (6) webcasts per year with participation in case observation, Q&A Session
  and Lunch or Dinner at each VIP Visit.

  

 

1.2.          Compensation for Attending Domestic
Sales/Tradeshow/Symposium Visits:

 

	
  1.2.1.

  	
  One
  day Domestic Sales Visit/Tradeshow:

  	
  $4,800
  per visit

  
	
   

  	
   

  	
   

  
	
  1.2.2.

  	
  Two
  day Domestic Sales Visit/Tradeshow:

  	
  $8,600
  per visit

  
	
   

  	
   

  	
   

  
	
  1.2.3.

  	
  Maximum
  Annual Compensation:

  	
  $18,200
  per year

  
	
   

  	
   

  	
   

  
	
  1.2.4.

  	
  Maximum
  annual compensation for domestic sales visits, tradeshows, and symposiums is
  based on the maximum of two (2) one-day visits and one (1) two-day visit per
  year, such visits to be selected by the Company.

  

 

1.3.          Compensation for Mexico and Canada Visits:

 

	
  1.3.1.

  	
  Two-day
  Sales Visit:

  	
  $9,600
  per visit

  
	
   

  	
   

  	
   

  
	
  1.3.2.

  	
  Maximum
  Annual Compensation:

  	
  $9,600
  per year

  

 

13

 

	
  

  
	
  ACCURAY

  

 

	
  1.3.3.

  	
  Maximum
  annual compensation for Mexican or Canadian visits is based on the maximum of
  one (1) two-day visit, such visit to be selected by the Company.

  
	
   

  	
   

  	
   

  
	
  1.3.4.

  	
  Notwithstanding
  the forgoing, in the event Company requests that Contractor travel to and
  attend a Mexican or Canadian sales visit, tradeshow, or symposium without at
  least thirty (30) days prior notice, then Company shall pay contractor an
  additional $1,000 in addition to the applicable compensation set forth in
  this Section.

  

 

1.4.          Compensation for Attending Europe and
Emerging Market Sales Visits:

 

	
  1.4.1.

  	
  Four-day Sales Visit:

  	
  $21,600 per visit

  
	
   

  	
   

  	
   

  
	
  1.4.2.

  	
  Five-day Sales Visit:

  	
  $25,000 per visit

  
	
   

  	
   

  	
   

  
	
  1.4.3.

  	
  Maximum
  Annual Compensation:

  	
  $123,700 per year

  
	
   

  	
   

  	
   

  
	
  1.4.4.

  	
  Maximum annual compensation for Europe and Emerging Markets Sales
  Visits is based on the maximum of one (1) trip lasting four (4) days to
  Europe, one (1) trip lasting five (5) days to Europe, two (2) trips lasting
  five (5) days to Asia, one (1) trip lasting five (5) days to Latin America,
  as set forth in §3.3 of Exhibit A.

  
	
   

  	
   

  	
   

  
	
  1.4.5.

  	
  Notwithstanding the forgoing, in the event Company requests that
  Contractor travel to and attend a European or Emerging Market sales visit,
  tradeshow, or symposium without at least 30 days prior notice, then Company
  shall pay contractor an additional $1,000 in addition to the applicable
  compensation set forth in this Section.

  
				

 

1.5.          Total
Compensation/Payment. As
indicated above, Contractor’s maximum possible annual compensation from Company
under this Agreement is $167,100 to be paid quarterly in advance, in four (4) equal
installments of $41,775 per quarter beginning on the day that this Agreement is
signed by both Parties and thereafter on the first business day of each
quarter. Should Contractor not perform certain of the above objectives, then
future quarterly payments to Contractor may be offset by the corresponding
amount of the Services not performed. If at the end of the term of this
Agreement, certain Services were not performed, and Contractor’s failure to
perform such services has not been offset against any subsequent quarter’s
installment, then Contractor shall reimburse Company for the corresponding
amount of the services not performed within thirty (30) calendar days.

 

14

 

	
  

  
	
  ACCURAY

  

 

EXHIBIT C

 

LIST OF POTENTIAL CONFLICTS

 

Cyberheart Inc.

 

15

 

	
  

  
	
  ACCURAY

  

 

EXHIBIT
D

CONTRACTOR TIME RECORD

 

Contractor:

 

	
  Date

  	
   

  	
  Description of Services Performed

  	
   

  	
  Locations of Services Performed

  	
   

  	
  Number

  of Days/Visits

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

This
record is a complete and accurate description of the Services I performed and
the time spent in connection therewith on behalf of Accuray Incorporated on the dates specified
above.

 

	
   

  	
   

  	
   

  
	
  Contractor

  	
   

  	
  Date

  

 

16esse8k9908ex10_1.htm

    
      

    

    EXHIBIT 10.1

    
 

    PURCHASE
AND SALE OF BUSINESS AGREEMENT

    

    THIS PURCHASE AND SALE OF BUSINESS
AGREEMENT (the "Agreement") made and entered into this 15th day of
August, 2008 (the "Execution Date"),

    

    BETWEEN:

    
      	
               

              Ken
      Danchuk of #312- 2532 Shoreline Dr., Winfield, BC, Canada,
      V4V1H8,

              Ron
      McQueen of PO Box 681-603, Park City, UT, 84068, and

              Larry
      Vance of PO Box, 763, Lakeside, MT, 59922,

               

              (individually
      and collectively the "Seller")

               

            
	
              OF
      THE FIRST PART

            
	
              -
      AND -

            
	
               

              Earth
      Search Sciences, Inc. of #6 - 306 Stoner Loop Rd, Lakeside, MT,
      59922 

              (the
      "Purchaser")

               

            
	
              OF
      THE SECOND PART

            

    

    

    BACKGROUND:

    

    
      	
              A.  

            	
              The
      Seller is the owner of all the issued and outstanding shares of General
      Synfuels International Inc., a private company (“GSI”), of #6 - 306 Stoner
      Loop Rd. Lakeside, MT, 59922 which carries on the business of Oil Shale
      Exploration & Production in the State of
  Montana.

            

    

    

    
      	
              B.  

            	
              The
      Seller desires to sell all the Shares to Earth Search Sciences, Inc., a
      public company (the “Purchaser”), and the Purchaser desires to buy the
      Shares.

            

    

    

    IN CONSIDERATION of the
provisions contained in this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which consideration is
acknowledged, the Parties agree as follows:

    

    Definitions

    

    
      	
              1.  

            	
              The
      following definitions apply in the
Agreement:

            

    

    

    
      	
              a.  

            	
              "Closing"
      means the completion of the purchase and sale of the Shares as described
      in this Agreement by the payment of the purchase price, and the transfer
      of title to the Shares.

            

    

    

    
      	
              b.  

            	
              “Closing
      Date” means the date that the transactions described in this Agreement are
      completed.

            

    

    

    
      	
              c.  

            	
              "Parties"
      means both the Seller and the Purchaser and "Party" means any one of
      them.

            

    

    

    
      	
              d.  

            	
              “Shares”
      means the shares of GSI owned by the
Seller

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              e.  

            	
              “Common
      Stock” means the shares of ESSI

            

    

    

    
      	
              f.  

            	
              “Dollars”
      or “$” means the lawful currency of the United States of
      America.

            

    

    

    
      	
              g.  

            	
              “Sharing
      Ratio” means

            

    

    

    Ken
Danchuk                                        25%

    Ron
McQueen                                      25%

    Larry
Vance                                          
50%

    

    Sale

    

    
      	
              2.  

            	
              Subject
      to the terms and conditions of this Agreement, and in reliance on the
      representations, warranties, and conditions set out in this Agreement, the
      Seller agrees to sell the Shares, to the Purchaser, and the Purchaser
      agrees to purchase the Shares from the
Seller.

            

    

    

    Purchase
Price

    

    
      	
              3.  

            	
              The
      price to be paid by the Purchaser to the Seller for the Shares will be
      $4,500,000 (four million, five hundred thousand dollars), (the "Aggregate
      Purchase Price"), payable to the Seller, pro rata according to their
      Sharing Ratio, as follows:

            

    

    

    
      	
              a.  

            	
              $2,000,000
      on the Closing Date, in the form of 33,333,333 shares of Common Stock
      issued pursuant to an exemption from registration under the Securities Act
      of 1933 and bearing a restrictive legend as set forth herein;
      and

            

    

    

    
      	
              b.  

            	
              $2,500,000
      in the form of a promissory note dated as of the Closing Date and payable
      in five equal payments of $500,000, commencing on the first business day
      of February 2009 and continuing on the first business day of each sixth
      calendar month thereafter until paid.  At the election of ESSI,
      each note payable can be converted to ESSI 144 stock calculated at a forty
      percent (40%) discount to the average trading price of ESSI Common Stock 5
      days prior to the emission of
payment.

            

    

    

    
      	
              4.  

            	
              The
      Parties acknowledge and agree that the market value of the Common Stock
      for the closing shall be $0.06 (six cents) per share of Common Stock and
      neither Party will make any filing with the Internal Revenue Service that
      is not consistent with such
valuation.

            

    

    

    
      	
              5.  

            	
              The
      Purchaser is responsible for paying all applicable taxes, including
      federal sales tax, state sales tax, duties, and any other taxes or charges
      payable to give effect to the transfer of the Shares from the Seller to
      the Purchaser provided, however, that the Purchaser shall have no
      obligation to pay income taxes or other taxes imposed upon the Seller that
      are measured by any gain on the sale of the
  Shares.

            

    

    

    
      	
              6.  

            	
              The
      Parties agree to co-operate in the filing of elections under Section
      338(g)  of the Internal Revenue Code
      and under any other applicable taxation legislation to allocate the
      Aggregate Purchase Price to the assets of GSI (including good will and
      other intangible assets), in order to give the required or desired effect
      to the allocation of the Aggregate Purchase Price.  The
      Purchaser agrees to reimburse the Seller for any additional taxes incurred
      by Seller as a result of such allocation and any taxes imposed on such
      reimbursement, all of which shall be considered an increase in the
      Aggregate Purchase Price.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Default

    

    
      	
              7.  

            	
              If
      any of the representations or warranties of Seller in this Agreement are
      false or untrue at the time made or if Seller fails to perform any
      obligation of Seller under this Agreement and such failure continues for
      more than 30 days after notice thereof from Purchaser (each a “Seller
      Default”), Purchaser shall have the option by written notice to Seller to
      declare this Agreement terminated and void ab
      inititio.  In the event of a Seller Default, all payments
      of the Aggregate Purchaser Price previously received by the Seller shall
      be returned to the Purchaser in the form in which they were received by
      the Seller and neither Party to this Agreement shall thereafter have any
      obligation hereunder to the other
Party.

            

    

    

    
      	
              8.  

            	
              If
      any of the representations or warranties of Purchaser in this Agreement
      are false or untrue at the time made or if Purchaser fails to perform any
      obligation of Purchaser under this Agreement and such failure continues
      for more than 30 days after notice thereof from Seller (each a “Purchaser
      Default”), Seller shall have the option by written notice to Purchaser to
      declare this Agreement terminated and void as of the date of such
      Purchaser Default.  In the
      event of a Purchaser Default, all payments of the Aggregate Purchaser
      Price previously received by the Seller shall be retained by the Seller as
      liquidated damages; provided however, that the remaining payments under
      the Promissory Note shall be
cancelled.

            

    

    

    Closing

    

    
      	
              9.  

            	
              The
      closing of the purchase and sale of the Shares (the "Closing") will take
      place on August 15th
      2008 (the "Closing Date") at the offices of the Purchaser or at such other
      time and place as the Parties mutually
agree.

            

    

    

    
      	
              10.  

            	
              At
      Closing:

            

    

    

    
      	
              a.  

            	
              The
      Purchaser shall deliver to each Seller (i) a certificate in the name of
      such Seller representing the number of shares of Common Stock equal to (A)
      33,333,333 times (B) such Seller’s Sharing Ratio and (ii) promissory note
      in the form attached hereto as Exhibit A
      in the amount of (A) $2,500,000 times (B) such Seller’s Sharing
      Ratio.

            

    

    

    
      	
              b.  

            	
              The
      Sellers’ will deliver to the Purchaser (i) all certificates of GSI held by
      or in the name of such Seller, duly endorsed for transfer or accompanied
      by a duly signed blank stock power and (ii) other transfer documents
      requested by the Purchaser to evidence the transfer of any bank accounts
      or other property of GSI.

            

    

    

    Seller's Representations and
Warranties

    

    
      	
              11.

            	
              The
      Seller, and each of them, severally and not jointly, represent and warrant
      to the Purchaser as follows with respect to such Seller and not with
      respect to any other Seller:

            

    

    

    
      	
              a.  

            	
              The
      Seller is the absolute beneficial owner of the Shares registered in such
      Seller’s name, free and clear of any liens, charges, encumbrances or
      rights of others, and is exclusively entitled to dispose of the Shares
      registered in such Seller’s name.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
              b.  

            	
              The
      execution and performance of this Agreement by Seller does not and will
      not (i) violate or conflict with any contract, judgment, writ, order or
      other obligation binding upon Seller or any of Seller’s assets or
      properties or (ii) require the Seller to obtain the consent of or notify
      any person.

            

    

    

    
      	
              c.  

            	
              The
      Seller, and each of them, are “accredited investors” as defined in Rule
      501(a) under the Securities Act of 1933 and are acquiring the Common Stock
      for their own account as an investment and not with a view to the sale,
      pledge, disposition or redistribution thereof.  The Seller
      understands and acknowledges that the Common Stock is being issued without
      registration under the Securities Act of 1933 and may be resold or
      transferred only pursuant to an effective registration statement under the
      Securities Act of 1933 or an exemption from registration thereunder, that
      the Purchaser is under no obligation to file any registration statement
      relating to the Common Stock, and that Seller may be required to hold the
      Common Stock for an indefinite period of time.  Each certificate
      representing shares of Common Stock will be imprinted with an appropriate
      restrictive legend.

            

    

    

    
      	
              12.

            	
              The
      Seller, and each of them, jointly and severally, represent and warrant to
      the purchaser as follows with respect to
GSI

            

    

    

    
      	
              a.  

            	
              GSI
      is a corporation duly incorporated or continued, validly existing, and in
      good standing under the laws of the State of Nevada and has all requisite
      authority to carry on business as currently
  conducted.

            

    

    

    
      	
              b.  

            	
              The
      execution and performance of this Agreement by Seller does not and will
      not (i) violate or conflict with any contract, judgment, writ, order or
      other obligation binding upon GSI or any of GSI’s assets or properties;
      (ii) require GSI to obtain the consent of or notify any person; (iii)
      result in the imposition of or give any person the right to acquire any
      lien or other interest in the assets or other properties of
      GSI.

            

    

    

    
      	
              c.  

            	
              GSI
      is the absolute beneficial owner of United States Patent #7,048,051 and
      United States Trademark
#77/282,1al61.

            

    

    

    
      	
              d.  

            	
              GSI
      does not have any outstanding contracts, agreements, or commitments of any
      kind, written or oral, with any third party regarding except for the
      material contracts described in, and attached to this Agreement
      as:

            

    

              -
License Agreement (Petro Probe, Inc.)

    - Plant
Construction Agreement (Petro Probe, Inc.)

    -
Facility Management Agreement (Petro Probe, Inc.)

    

    
      	
              e.  

            	
              GSI
      is not bound by any written or oral pension plan or collective bargaining
      agreement or obligated to make any contributions under any retirement
      income plan, deferred profit sharing plan or similar
  plan.

            

    

    

    
      	
              f.  

            	
              GSI
      is operating in accordance with all applicable laws, rules, and
      regulations of the jurisdictions in which it is carried on.  In
      compliance with such laws, GSI has duly licensed, registered, or qualified
      with the appropriate public
authorities.

            

    

    

    
      	
              g.  

            	
              The
      trademarks and trade names used by GSI in carrying on the business are
      owned exclusively and validly by GSI. The trade names are duly registered
      with the appropriate public authorities in order that the rights
      associated with the trade names are protected. To the best knowledge of
      the Sellers, there are no claims of infringement existing against the
      patents, trademarks, copyrights or any other trade names used by
      GSI.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              h.  

            	
              To
      the best knowledge of the Sellers, the conduct of the business of GSI does
      not infringe on the patents, trademarks, trade names or copyrights,
      domestic or foreign of any other person, firm or
    corporation.

            

    

    

    
      	
              i.  

            	
              GSI
      has filed all tax reports and returns and has paid all taxes owed to all
      taxing authorities, including foreign taxing authorities, except amounts
      that are being properly contested by GSI, the details of this contest
      having been provided to the
Purchaser.

            

    

    

    
      	
              13.

            	
              The
      Seller’s representations and warranties will survive the Closing of this
      Agreement for a period of three years, after which time, if no claim has
      been made by the Purchaser against the Seller regarding the breach or
      inaccuracy of a representation or warranty, the Seller will have no
      further liability with regard to any of the representations or warranties
      given in this Agreement.

            

    

    

    Purchaser’s Representations
and Warranties

    

    
      	
              14.

            	
              The
      Purchaser represents and warrants to each Seller as
    following:

            

    

    

    
      	
              a.  

            	
              The
      Purchaser is a corporation duly incorporated or continued, validly
      existing, and in good standing under the laws of the State of Nevada and
      has all requisite capacity and authority to carry on business as currently
      conducted.

            

    

    

    
      	
              b.  

            	
              The
      execution and delivery of this Agreement, and this transaction has been
      duly authorized by all necessary corporate action on the part of the
      Purchaser and this Agreement is binding upon the Purchaser in accordance
      with its terms, subject to applicable bankruptcy laws and principals of
      equity.

            

    

    

    
      	
              c.  

            	
              The
      execution and performance of this Agreement by Seller, the payment of the
      Aggregate Purchase Price, the issuance of the Common Stock and the
      execution and delivery of the promissory note as part of the Aggregate
      Purchase Price does not and will not (i) violate or conflict with any
      contract, judgment, writ, order or other obligation binding upon the
      Purchaser or any of the Purchaser’s assets or properties, (ii) require the
      Purchaser to obtain the consent of or notify any person (other than any
      notification that may be required under applicable securities laws of the
      United States), or (iii) result in the imposition of or give any person
      the right to acquire any lien or other interest in the assets or other
      properties of the Purchaser.

            

    

    

    
      	
              d.  

            	
              The
      Purchaser has not incurred any obligation, commitment, restriction, or
      liability of any kind, absolute or contingent, present or future, which
      would adversely affect its ability to perform its obligations under this
      Agreement.

            

    

    

    
      	
              e.  

            	
              The
      Purchaser is a resident of the United States for the purposes of the Internal Revenue
      Code.

            

    

    

    
      	
              f.  

            	
              The
      Common Stock, when issued in accordance with this Agreement will be duly
      issued, fully paid and non-assessable shares of the common stock of the
      Purchaser.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              g.  

            	
              Based
      in part upon the representations of the Seller, the Common Stock is not
      subject to registration under the Securities Act of
  1933.

            

    

    

    
      	
              15.

            	
              The
      Purchaser's representations and warranties will survive the Closing for a
      period of three years, after which time, if no claim has been made by the
      Seller against the Purchaser regarding the breach or inaccuracy of a
      representation or warranty, the Purchaser will have no further liability
      with regard to any of the representations or warranties given in this
      Agreement.

            

    

    

    Additional Agreements of the
Parties

    

    
      	
              16.  

            	
              The
      Purchaser will use all reasonable efforts to ensure the confidentiality of
      any private or unpublished information received from the Seller or GSI or
      observed at the premises of GSI.  If this Agreement is
      terminated for any reason, the Purchaser will promptly return all written
      information and documents relating to GSI to
  GSI.

            

    

    

    
      	
              17.  

            	
              For
      a period of three years after the Closing Date or until the termination of
      this Agreement, whichever first occurs, the Seller will not individually
      or in conjunction with any other person or business entity or in any other
      manner whatsoever have interest in, enter employment with, lend money to,
      or advise any business similar to or in competition with the
      GSI.

            

    

    

    
      	
              18.  

            	
              Each
      Party agrees to take such other actions and sign and deliver such other
      documents as are necessary to evidence the transfer of the Shares and the
      ownership and control of all assets of GSI to the
    Purchaser.

            

    

    

    
      	
              19.  

            	
              GSI
      will not hire, and Seller will take all action necessary to prevent GSI
      from hiring, any new employees, or substantially change the role or title
      of any existing employees, provide unscheduled or irregular increases in
      salary or benefits to employees, or instituting any significant changes to
      the terms of any employees’ employment, after signing this Agreement,
      unless the Purchaser provides written
consent.

            

    

    

    
      	
              20.  

            	
              The
      Purchaser will obtain or complete all forms, documents, consents,
      approvals, registrations, declarations, orders, or authorizations of any
      person or any governmental or public body, required of the Purchaser in
      connection with the execution of this Agreement or the performance of its
      obligations hereunder, including without limitation the filing of a Notice
      of Sale on Form D with the Securities and Exchange Commission within 15
      days after the Closing Date.

            

    

    

    
      	
              21.  

            	
              The
      Seller will provide the Purchaser with all information in Seller’s control
      concerning the operation of the business of
GSI.

            

    

    

    
      	
              22.  

            	
              The
      Purchaser will execute a Consulting Agreement with each Seller in the form
      attached hereto as Exhibit B with
      such changes therein as are necessary to reflect the expected role and
      expertise of each Seller and are acceptable to such
  Seller.

            

    

    

    Indemnity Respecting
Liabilities

    

    
      	
              23.  

            	
              The
      Seller will indemnify and save the Purchaser and GSI harmless from and
      against all claims, loss, damage, liability or expense which the Purchaser
      may suffer in regards to any liability or obligation arising out of any
      breach of a representation by Seller or default of any agreement by Seller
      under this Agreement; provided, however, that any claim for indemnity
      under this provision must be made within three years after the Closing
      Date.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              24.  

            	
              The
      Purchaser will indemnify and save the Seller and GSI harmless from and
      against all claims, loss, damage, liability or expense which the Seller or
      GSI may suffer in regards to any liability or obligation arising out of
      any breach of a representation by Purchaser or default of any agreement by
      Purchaser under this Agreement; provided, however, that any claim for
      indemnity under this provision must be made within three years after the
      Closing Date.

            

    

    

    Miscellaneous
Provisions

    

    
      	
              25.  

            	
              Notices.  Any
      notices or deliveries required in the performance of this Agreement will
      be deemed completed when hand-delivered, delivered by agent, or seven (7)
      days after being placed in the post, postage prepaid, to the Parties at
      the addresses contained in this Agreement or as the Parties may later
      designate in writing.

            

    

    

    
      	
              26.  

            	
              Expenses.  The
      Parties agree to pay all their own costs and expenses in connection with
      this Agreement.

            

    

    

    
      	
              27.  

            	
              Severability.  The
      Parties acknowledge that this Agreement is reasonable, valid, and
      enforceable; however, if any part of this Agreement is held by a court of
      competent jurisdiction to be invalid, it is the intent of the Parties that
      such provision be reduced in scope only to the extent deemed necessary to
      render the provision reasonable and enforceable and the remainder of the
      provisions of this Agreement will in no way be affected or invalidated as
      a result.

            

    

    

    
      	
              28.  

            	
              Governing
      Law.  This Agreement will be governed by and construed in
      accordance with the laws of the State of
  Montana.

            

    

    

    
      	
              29.  

            	
              Entire
      Agreement.  This Agreement contains the entire agreement
      between the Parties. Statements or representations which may have been
      made by any Party to this Agreement in the negotiation stages of this
      Agreement may in some way be inconsistent with this final written
      Agreement. All such statements are declared to be of no value to either
      Party. Only the written terms of this Agreement will bind the
      Parties.

            

    

    

    
      	
              30.  

            	
              Amendment.  This
      Agreement may only be amended or modified by a written instrument executed
      by all of the Parties.

            

    

    

    
      	
              31.  

            	
              Waivers.  A
      waiver by one Party of any right or benefit provided in this Agreement
      does not infer or permit a further waiver of that right or benefit, nor
      does it infer or permit a waiver of any other right or benefit provided in
      this Agreement.

            

    

    

    
      	
              32.  

            	
              Assignment.  This
      Agreement will not be assigned either in whole or in part by any Party
      without the written consent of the other
Party.

            

    

    

    
      	
              33.  

            	
              Inurnment.  This
      Agreement will pass to the benefit of and be binding upon the Parties'
      respective heirs, executors, administrators, successors, and permitted
      assigns.

            

    

    

    
      	
              34.  

            	
              Severability.  The
      clauses, paragraphs, and subparagraphs contained in this Agreement are
      intended to be read and construed independently of each other. If any part
      of this Agreement is held to be invalid, this invalidity will not affect
      the operation of any other part of this
  Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              35.  

            	
              Rights
      Cumulative.  All of the rights, remedies and benefits
      provided in this Agreement will be cumulative and will not be exclusive of
      any other such rights, remedies and benefits allowed by law or
      equity.

            

    

    

    
      	
              36.  

            	
              Time is of the
      Essence.  Time is of the essence in this
      Agreement.

            

    

    

    
      	
              37.  

            	
              Counterparts;
      Facsimile Signatures.  This Agreement may be executed in
      counterparts. All such counterparts shall be deemed to be a single
      agreement. Facsimile signatures are binding and are considered to be
      original signatures.

            

    

    

    
      	
              38.  

            	
              Interpretation.  Headings
      are inserted for the convenience of the Parties only and are not to be
      considered when interpreting this Agreement. Words in the singular mean
      and include the plural and vice versa. Words in the masculine gender
      include the feminine gender and vice versa. Words in the neuter gender
      include the masculine gender and the feminine gender and vice
      versa.

            

    

    

    IN WITNESS WHEREOF the Parties
have duly affixed their signatures under hand and seal on this 15th day of
August, 2008.

    

     

    
      	 
      	
              /S/
      KEN DANCHUK

            
	 
      	
              Ken
      Danchuk – shareholder – 500,000
shares

            

    
         

    
      	 
      	 
      
	 
      	
              /S/
      RON MCQUEEN

            
	 
      	
              Ron
      McQueen – shareholder – 500,000
shares

            

    
         

    
      	 
      	 
      
	 
      	
              /S/
      LARRY VANCE

            
	 
      	
              Larry
      Vance – shareholder – 1,000,000
shares

            

    

     

     

    
    

    Earth
Search Sciences, Inc.

       

      
        	 	  

                Per: /S/ LUIS F. LUGO
      (Seal)

                             Luis
      F. Lugo CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]