Document:

ex10-1.htm

    Exhibit
10.1

     

     

    
 

    SEVERANCE
AGREEMENT AND GENERAL RELEASE

     

    THIS SEVERANCE AGREEMENT AND GENERAL
RELEASE (this “Agreement”), dated as
of May 16, 2008, is made and entered into by and between Kronos Advanced
Technologies, Inc., a Nevada corporation (the “Company”), and Daniel
R. Dwight, an individual resident of the State of Massachusetts (“Dwight”).

     

    WHEREAS, Dwight is a
stockholder, officer, director and employee of the Company;

     

    WHEREAS, Dwight is a party to
the following agreements with the Company:  Employment Agreement,
dated November 15, 2001 (“Employment
Agreement”); a Promissory Note, dated March 31, 2004 made by the Company
in favor of Dwight (“Note”); Stock Option
Agreement, dated June 19, 2007 (“Stock Option
Agreement”); and Indemnification Agreement, dated August 11, 2000 (“Indemnification
Agreement”);

     

    WHEREAS, in connection with
the foregoing, Dwight and the Company desire to evidence in writing the terms
and conditions of such termination.

     

    NOW, THEREFORE, in
consideration of the foregoing and the respective representations, warranties,
covenants, agreements, and conditions set forth herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

     

    1.           EMPLOYMENT
TERMINATION.  Dwight will take his five (5) weeks of accrued
vacation beginning on May 19, 2008 and continuing until June 20,
2008.  Dwight’s Company employment will end on June 20, 2008 (“Termination Date”)
and by executing this Agreement, Dwight resigns as an officer and director of
the Company effective as of the date hereof.  During his employment,
Dwight participated in certain Company-provided benefits, and he also purchased
his own health, life and disability insurance benefits through third-party
insurance companies, for which he was reimbursed by the Company (“Third-Party Benefit
Plans”).  As of the Termination Date, any entitlement Dwight
had or might have had under a Company-provided benefit plan shall cease, except
as required by law.  The Termination Date shall be the qualifying
event under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”).  Dwight understands
that his rights and continued participation in those Company-sponsored plans
will be governed by the terms of such plans, and that Dwight generally will
become ineligible for those plans on the Termination
Date.  Thereafter, Dwight will be able to purchase continued coverage
under certain of such Company-provided plans and to continue his current health
and other benefits with his existing Third-Party Benefit

     

    
      	 	
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    Plans;
provided, however, that to the extent Dwight purchases continuation coverage
under certain of Company-provided and/or continues his benefits under his
Third-Party Benefit Plans, the Company shall reimburse Dwight for such coverage
on a monthly basis during the 12-month period after the Termination Date within
thirty (30) days of Dwight’s written reimbursement request for such
benefits.  By executing this Agreement both parties acknowledge and
agree that the Employment Agreement is hereby terminated and of no further force
and effect; provided, however, that
the parties acknowledge and agree that Sections 4 (Confidentiality/Covenant
Against Unfair Competition), 5 (Company Property) and 8 (Indemnification)
thereof shall survive such termination and remain in full force and effect in
accordance with the terms thereof.  Dwight agrees that all provisions
of that certain Voting Agreement dated as of June 20, 2007, by and among Dwight,
the Company and the other parties thereto (“Voting Agreement”)
shall continue to be in full force and effect after the Termination
Date.

     

    2.           PAYMENTS
AND BENEFITS.

     

    (a)           Severance
Payment.  The Company shall pay to Dwight twenty-four equal
severance payments each in
the amount of Nine Thousand Three Hundred Seventy-Five Dollars ($9,375.00),
minus applicable federal, state, and local tax withholdings, the first payment
of which shall be paid on the first regularly scheduled payroll period following
the Termination Date, and each subsequent payment shall be paid immediately
thereafter in accordance with the Company’s regular payroll procedures until the
entire severance payment is paid in full.  At the appropriate time, as
required by law, the Company shall issue an IRS Form W-2 reflecting such
payments.  Such payments will not be taken into account in determining
Dwight’s rights or benefits under any other program.

     

    (b)           Loan
Repayment.  Within ten (10) days of the execution of this
Agreement by all parties, the Company shall repay to Dwight the aggregate amount
of the outstanding principal and all accrued interest on the Note as of the date
hereof, which is Fifty Nine Thousand Nine Hundred Eighty-Six and 29/100 Dollars
($59,986.29).  Upon receipt of payment of the Note in full, Dwight
shall return to the Company for cancellation all documentation, including,
without limitation, the Note and any other document, evidencing indebtedness
owed by the Company to Dwight.

     

    3.           RELEASE.

     

    (a)           Dwight
releases (i.e., gives
up) all known and unknown claims that Dwight presently has (i.e., has as of the date hereof) against the
Company, all current and former parents, subsidiaries, related companies,
partnerships, joint ventures, or other affiliates, and, with respect to each of
them, their predecessors and successors; and, with respect to each such entity,
all of its past, present, and future employees, officers, directors,
stockholders, owners, representatives, assigns, attorneys, agents, insurers,
employee benefit programs (and the trustees, administrators, fiduciaries, and
insurers of

     

    
      	 	
              
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    such
programs), and any other persons acting by, through, under or in concert with
any of the persons or entities listed in this section, and their successors
(“Released
Parties”), except claims that the law does not permit Dwight to waive by
signing this Agreement.  For example, Dwight is releasing all common
law contract, tort, or other claims he might have, as well as all claims he
might have under the WARN Act, the Age Discrimination in Employment Act (“ADEA”), Title VII of
the Civil Rights Act of 1964, Sections 1981 and 1983 of the Civil Rights Act of
1866, the Americans With Disabilities Act (ADA), the Employee Retirement Income
Security Act of 1974 (“ERISA”), and similar
state or local laws.  Notwithstanding the forgoing, Dwight is
not releasing any rights or claims related to indemnification, which
rights are set forth in Section 8 of the Employment Agreement and the
Indemnification Agreement.

     

    (b)           The
Company hereby acknowledges and agrees that as of the Termination Date it has no
knowledge of any claims it may have against Dwight.

     

    4.           COOPERATION
REQUIRED.  If requested by the Company after May 16, 2008 and
until the date that is six (6) months after the date hereof, Dwight shall
cooperate with the Company or any affiliate for up to twenty (20) hours per
month in effecting a smooth transition of his responsibilities to others (“Transition
Services”).  The first eight (8) hours in each month that
Dwight works performing Transition Services shall be at no cost to the Company,
but to the extent Dwight works more than eight (8) hours in any month performing
any such Transition Services and/or provides other consulting services as may be
requested by the Company (i.e.,
consulting services that are not Transition Services), he will be paid an
hourly rate of Three Hundred Dollars ($300) for each such hour that he
works.  The parties have evidenced such intent and terms in that
certain Consulting Agreement executed by the parties simultaneously
herewith.

     

    5.           MUTUAL
NON-DISPARAGEMENT.  Dwight agrees not to criticize, denigrate,
or otherwise disparage the Company, any other Released Party, or any of the
Company’s products, processes, experiments, policies, practices, standards of
business conduct, or areas or techniques of research.  Similarly, the
Company, including its employees, agrees not to criticize, denigrate, or
otherwise disparage Dwight.  In the event that a prospective employer
or third-party contacts the Company for a reference about Dwight, the Company
agrees that it will only provide such prospective employer or third-party with
the dates of Dwight’s employment with the Company and the positions he held with
the Company.  Dwight shall direct any such prospective employer to
contact Richard Tusing or Barry Salzman.

     

    6.           OTHER REPRESENTATIONS AND
PROMISES.  Dwight and the Company acknowledge and agree as
follows:

     

    (a)           The
Company agrees to pay all of Employee’s attorneys’ fees (up to a maximum amount
of Three Thousand Dollars ($3,000)) incurred in connection with the

     

    
      	 	
              
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    review
and negotiation of this Agreement and all other agreements and/or documents
executed herewith.

     

    (b)           This
Agreement is the entire agreement relating to Dwight’s service with the Company
and any claims or future rights that Dwight might have with respect to the
Company and the Released Parties, except for the equity interest agreements
(e.g., Stock Option Agreement and Voting Agreement) described in the attached
Exhibit 6(k),
the Note, the surviving provisions of the Employment Agreement as set forth
herein, the Indemnification Agreement and a Consulting Agreement executed
simultaneously herewith, each of which shall remain in full force and effect in
accordance with their terms.

     

    (c)           Neither
party relied on any representations that were not in this Agreement when
executing this Agreement.

     

    (d)           Dwight
has not suffered any job-related wrongs or injuries, such as any type of
discrimination, for which Dwight might still be entitled to compensation or
relief in the future.  Upon the Company’s full payment of the Note and
Dwight’s outstanding business expense reimbursement request(s), which total One
Thousand One Hundred Thirty-Eight and 50/100 Dollars ($1,138.50), Dwight will
have been paid all wages, compensation, benefits, expenses and other amounts
that the Company or any Released Party should have paid Dwight through the date
hereof.

     

    (e)           This
Agreement is not an admission of wrongdoing by the Company or any other Released
Party.

     

    (f)           Dwight
is intentionally releasing claims that he does not know that he might have and
that, with hindsight, he might regret having released.  Dwight has not
assigned, transferred or otherwise given away any of the claims he is
releasing.

     

    (g)           If
the Company or Dwight successfully asserts that any provision in this Agreement
is void, the rest of the Agreement shall remain valid and enforceable unless the
other party to this Agreement elects to cancel it.

     

    (h)           If
Dwight initially did not think any representation he is making in this Agreement
was true or if Dwight initially was uncomfortable making it, Dwight resolved all
his doubts and concerns before signing this Agreement.  Dwight has
carefully read this Agreement, fully understands what it means, is entering into
it knowingly and voluntarily, and confirms that all Dwight’s representations in
this Agreement are true.  The consideration period described in the
box above Dwight’s signature started when Dwight first was given this Agreement,
and Dwight waives any right to have it restarted or extended by any subsequent
changes to this Agreement.  The Company would not

     

    
      	 	
              
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    have
given Dwight the payments or benefits he is getting in exchange for this
Agreement but for his representations and promises he is making by signing
it.

     

    (i)           Dwight
shall return to the Company all files, memoranda, documents, records, copies of
the foregoing, Company-provided credit cards, keys, building passes, security
passes, access or identification cards, and any other property of the Company or
any Released Party in Dwight’s possession or control; provided, however, that
the Company has requested that Dwight continue to maintain and store certain of
the Company’s business documents, including, but not limited to, the Company’s
key filings, financial documents, and Company contracts (maintained in 25 filing
cabinets at Dwight’s home office) as well as certain of the Company’s prototype
and test equipment until it can arrange for the transfer of these
documents.  The Company agrees that it shall not hold Dwight
personally liable for the maintenance and safekeeping of these documents and the
Company will incur all of the expenses associated with the transfer of these
documents.  Dwight shall keep these documents available to the Company
at all times that these documents are maintained and stored by Dwight (subject
to Dwight’s travel schedule, which will require that he not be physically
present at the home office on a regular basis and, as a result, may require a
reasonable period of time for Dwight to respond to any request(s) by the Company
for documents).  If the Company requests that Dwight store these
documents beyond June 30, 2008, the Company shall pay to Dwight a monthly
storage fee of $1,500 which shall be paid to Dwight on a monthly basis and which
fee shall be prorated for any period of storage of less than twenty-eight (28)
days. Dwight shall clear all expense accounts, repay everything he owes to the
Company or any Released Party, pay all amounts he owes on Company-provided
credit cards or accounts (such as cell phone accounts), and cancel or personally
assume any such credit cards or accounts.  As of the date of the
execution of this Agreement, the parties acknowledge and agree that Dwight does
not owe any such amounts to the Company.  Dwight shall not incur any
expenses, obligations, or liabilities on behalf of the Company.

     

    (j)           By
executing this Agreement, Dwight, to the maximum extent permitted by law,
irrevocably assigns to the Company all of his rights to all Subject
Inventions.  “Subject Invention”
means any Invention that was conceived or first practiced by Dwight, alone or in
a joint effort with others, at any time prior to the execution hereof, which (1)
may be reasonably expected to be used in a product of the Company, or a product
similar to a Company product, (2) results from work that Dwight performed as
part of his duties as an employee for the Company, (3) is in an area of
technology which is the same as or substantially related to the areas of
technology with which Dwight was employed during his time as an employee of the
Company, (4) is useful, or which Dwight reasonably expects may be useful, in any
manufacturing or design process of the Company, or (5) utilizes any Confidential
Information or Trade Secrets.  “Invention” means any
discovery, whether or not patentable, including, without limitation, any
process, method, formula, technique, machine, manufacture, composition of
matter,

     

    
      	 	
              
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    algorithm
or computer program, trade secrets, works of authorship, mask work, circuit,
layout, idea, design, know-how and data, as well as improvements
thereto.

     

    (k)           Dwight
hereby represents and warrants to the Company that Exhibit 6(k) attached
hereto sets forth a true, correct and complete list of all of the type and
amount of equity interests in the Company owned, directly or indirectly, by
Dwight, including, without limitation, all interests convertible into equity in
the Company, and in the case of the options to acquire shares of the Company’s
capital stock owned, directly or indirectly, by Dwight, the grant date, exercise
price, vesting date, and expiration date of such options, each of which shall
remain in full force and effect in accordance with their respective
terms.

     

    (l)           The
Company acknowledges and agrees that it shall immediately take all necessary
steps to change the Company’s general phone number on any public documents,
including any and all SEC filings, which currently lists Dwight’s home office
number.

     

    (m)           The
parties agree that they will take all necessary steps to transfer the access to
the Kronos Advanced Bank account from Dwight to Richard Tusing as soon as
practicable, but no later than the Termination Date.

     

    7.           MISCELLANEOUS.

     

    (a)           No
Waiver.  The failure of any party to this Agreement to enforce
at any time, or for any period of time, any one or more of the terms of this
Agreement shall not be a waiver of such terms or conditions or of such party’s
right thereafter to enforce each and every term and condition of this
Agreement.

     

    (b)           Choice of
Law.  This Agreement shall be interpreted and enforced in
accordance with the laws of Massachusetts.

     

    (c)           Legal Fees and
Expenses.  In the event that either party brings a lawsuit to
enforce their respective contractual rights under this Agreement, the Promissory
Note, the Indemnification Agreement or the Consulting Agreement, the prevailing
party shall be entitled to recover all legal fees and expenses associated with
prosecuting such claim(s).

     

    (d)           No Presumption Against
Drafter.  This Agreement has been drafted through a cooperative
effort by both parties, and neither party shall be considered the drafter of
this Agreement so as to give rise to any presumption or convention regarding
construction of this document.

     

    
      	 	
              
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              DWIGHT
      MAY NOT MAKE ANY CHANGES TO THE TERMS OF THIS AGREEMENT.  BEFORE
      SIGNING THIS AGREEMENT, DWIGHT SHOULD READ IT CAREFULLY AND, IF
      HE
      CHOOSES, DISCUSS IT WITH HIS ATTORNEY. DWIGHT
      SHOULD TAKE AS MUCH TIME AS HE NEEDS TO CONSIDER THIS AGREEMENT BEFORE
      DECIDING WHETHER TO SIGN IT, UP TO TWENTY-ONE (21) DAYS.  BY
      SIGNING IT DWIGHT
      WILL BE WAIVING HIS KNOWN AND UNKNOWN CLAIMS.

               

              MAY
      23, 2008, IS THE DEADLINE FOR DWIGHT
      TO DELIVER A SIGNED COPY OF THIS AGREEMENT TO RICHARD F. TUSING AT 6867
      ELM STREET SUITE 101, MCLEAN, VA, TELEPHONE 1.703.821.1905. IF
      DWIGHT
      FAILS TO DO SO, HE WILL NOT RECEIVE THE PAYMENTS OR BENEFITS DESCRIBED IN
      IT.

               

              DWIGHT
      MAY REVOKE THIS SETTLEMENT AGREEMENT IF HE REGRETS HAVING SIGNED
      IT.  TO DO SO HE MUST DELIVER A WRITTEN NOTICE OF REVOCATION TO
      RICHARD F. TUSING AT 6867 ELM STREET SUITE 101, MCLEAN, VA, TELEPHONE
      1.703.821.1905, BEFORE SEVEN (7) TWENTY-FOUR (24) HOUR PERIODS EXPIRE FROM
      THE TIME HE SIGNED IT.  IF DWIGHT REVOKES THIS SETTLEMENT
      AGREEMENT, IT WILL NOT GO INTO
EFFECT.

            

    

    

     

    
      
        	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	Date:  May 16,
      2008   	/s/
      Daniel R. Dwight  	 
      
	 
      	Daniel
      R. Dwight  	 
      
	 
      	 
      	 
      

      

    

     

    
      
        	 
      	KRONOS
      ADVANCED TECHNOLOGIES, INC. 	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	Date:  May 16,
      2008  	
                By:    
      

              	/s/
      Richard F. Tusing  	 
      
	 
      	 
      	
                Name:    
      

              	Richard
      F. Tusing  	 
      
	 
      	 
      	
                Title:

              	Chief
      Operating Officer  	 
      

      

    

     

     

     

     

     

     

     

    
      	 	
              

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      EXHIBIT
6(k)

      EQUITY
INTERESTS

    Kronos
Advanced Technologies, Inc. (“Kronos”) Common Stock – 1,201,926
Shares

    

    

    Kronos
Stock Options – 26,000,000 options to purchase 26,000,000 shares of Kronos
Common Stock granted under the Kronos Stock Incentive Plan Stock Option
Agreement dated June 19, 2007.  Stock Options are fully vested and
exercisable at an Exercise Price per Share of $0.016 until the Expiration Date
of June 19, 2017.ex10-2.htm

     

    Exhibit
10.2

     

    
 

    ADVISORY
AGREEMENT

    

    This
Advisory Agreement (the “Agreement”) is made
and entered into as of the effective date June 20, 2008 (the “Effective Date”),
between Kronos Advanced Technologies, Inc. (“Kronos”), a Nevada
corporation and Daniel R. Dwight, an individual, hereinafter collectively
referred to as “Advisor”.

    

    Recitals

    

    WHEREAS,
Kronos is interested in Advisor providing Specialized Consulting Services as
detailed in Attachment A.  For such service, Kronos is willing to
compensate Advisor, subject to the covenants, conditions and limitations set
forth in this Agreement.

    

    WHEREAS,
Advisor has special knowledge and other background experience relevant to the
field and is willing to provide the services contemplated by and in accordance
with the covenants, conditions and limitations of this Agreement.

    

    Agreement

    

    In
consideration of the foregoing recitals, the mutual covenants hereinafter
provided, and for other good and valuable considerations, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound and equitably bound, hereby agree as follows:

    

    I.           Scope and Limitations of
Engagement.

     

    1.           Kronos appoints
Advisor.  Kronos hereby appoints Advisor and Advisor hereby
accepts such appointment, on a non-exclusive basis, to provide the Services as
described in Attachment A
Statement of Work.  The Statement of Work may be modified or amended
by mutual written consent of Kronos and Advisor.

     

    2.           Independent Status of
Advisor.  Advisor shall, at all times, be an independent
contractor hereunder, rather than a co-venturer, agent, employee, or
representative of Kronos.  Advisor shall be responsible for Advisor’s
taxes, shall not be required to work on a continuing daily basis or
any specific work schedule, and shall not be provided with office space or
administrative support by Kronos. Advisor is permitted to engage in other
businesses and ventures.  Advisor shall be solely responsible for
complying with all laws, rules, and regulations applicable to its services
hereunder.  Kronos shall not be liable for any injury (including
death) to Advisor or others, workmen’s compensation, employer’s liability,
social security, withholding tax, or other taxes of similar nature for or on
behalf of Advisor or any other person, persons, firms or corporations consulted
by Advisor in carrying out this Agreement.  It is understood, however,
that should Kronos be held liable for any social security, withholding or other
taxes of a similar nature on behalf of Advisor, then Kronos shall have the right
to recover an equivalent

     

    
      
         

      

      
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    amount
from Advisor or deduct such amount from any compensation due to Advisor pursuant
to this Agreement.

     

    3.           Confidentiality.  The
Advisor acknowledges that during the Term of this Agreement, the Advisor may be
given access to or may become acquainted with Confidential Information (as
hereinafter defined) and/or trade secrets of Kronos.  Subject to the
exceptions set forth below and permitted uses of Confidential Information in
connection with the provision of services pursuant to this Agreement, the
Advisor acknowledges that the Confidential Information and/or trade secrets of
Kronos as such may exist from time to time, are valuable, confidential, special
and unique assets of Kronos, expensive to produce and maintain and essential for
the operation of its business. The Advisor hereby agrees that he shall not,
during the Term of this Agreement and for a period of five (5) years thereafter,
directly or indirectly, communicate, disclose or divulge to any Person, as
defined below, or use for its benefit or the benefit of any Person, in any
manner any Confidential Information or trade secrets of Kronos acquired before
or during the Term of this Agreement, or any other Confidential Information
concerning the conduct and details of the businesses of Kronos, except as may be
required for the Advisor to perform the services hereunder and otherwise to
comply with the terms and conditions and intent of this Agreement and by law, or
to enforce the Advisor’s rights hereunder.  As used in this Section,
"Confidential
Information” of Kronos means any and all information (verbal and written)
relating to Kronos or any of its subsidiaries or any of its affiliates, or any
of their respective activities, including, but not limited to, information
relating to trade secrets, personnel lists, financial information, research
projects, services used, pricing, software, software code, technical memoranda,
designs and specifications, new products and services, comparative analyses of
competitive products, technology, know-how, customers, customer lists and
prospects, product sourcing, marketing and selling and
servicing.  Confidential Information shall not include information
that, at the time of disclosure, (a) is known or available to the general public
by publication (including, without limitation, the public disclosure of
information pursuant to Kronos’ reporting obligations under applicable federal
and state securities laws) or otherwise through no act or failure to act on the
part of the Advisor in violation of this Section I(3), (b) became known or
was derived by the Advisor by some demonstrable means other than as a result of
the Advisor’s access thereto, (c) was rightfully received from a third party
without similar restrictions and without breach of this Agreement or any other
agreement, or (d) was independently developed by the Advisor without any
utilization of the Confidential Information.  The Advisor shall not be
liable for any disclosure of Confidential Information made pursuant to a valid
and enforceable judicial or governmental order (a “Mandated Disclosure”)
not sought by the Advisor for the purpose of circumventing his obligations
hereunder; provided, however, that the Advisor’s obligations under this Section
I (3) shall be deemed satisfied if, promptly upon the Advisor’s receipt of
a subpoena or other written notice seeking disclosure of Confidential
Information, the Advisor shall provide written notice to Kronos of any attempt
to obtain the Mandated Disclosure and in any event prior to any disclosure of
Confidential Information pursuant thereto, and reasonably cooperates with Kronos
in the event that Kronos elects to legally contest and avoid the Mandated
Disclosure.

     

    
      
         

      

      
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    II.           Intellectual
Property.

     

    1.           Advisor
covenants and agrees that any works of authorship, work product, materials,
copyrights, discoveries, improvements, inventions and/or patent rights and
anything else that Advisor may make or acquire, either solely or jointly with
others, which result from Advisor’s contact with Kronos personnel and operation
or from Advisor’s work for Kronos, during the Term of this Agreement or while
engaged upon the advisory work under this Agreement, and for six (6) months
thereafter, shall be the exclusive property of Kronos and agrees to assign, and
by these presents does hereby assign and transfer all his entire right, title
and interest in and to such inventions, improvements and patent rights to
Kronos, its successors and assigns, and Advisor agrees upon the request of
Kronos to execute and deliver all documents and perform such acts necessary or
advisable to secure to Kronos, its successors and assigns or its nominee without
payment of additional consideration therefore other than the payment for said
advisory services as herein provided, the entire right, title and interest in
and to said discoveries, improvements and inventions, including applications for
and/or letters patent of the United States and countries foreign thereto
provided the cost of preparing such papers, assignments and applications for
letters patent and the prosecution and maintenance of said applications for
and/or letters patent and all proceedings and litigation is borne by Kronos or
its nominee.  Both parties agree that any obligation Advisor may now
have to assign inventions to Kronos is not waived or changed by terms of this
Agreement.

     

    2.           Advisor
agrees that any and all information including know-how and trade secrets that
may be imparted to him by Kronos as well as Advisor’s advice, recommendations
and opinions resulting from such advisory service shall be maintained
confidential and secret and Advisor shall not use or disclose said information
to others except officials and duly authorized employees and representatives of
Kronos, without prior written consent and approval of Kronos.

     

    3.           Advisor
shall at all times during and after the Term of this Agreement, upon the request
and the expense of Kronos, execute and deliver any and all papers, and do any
and all lawful acts that may be necessary or desirable in the opinion of Kronos
including but not limited to:

     

    a.           To
obtain letters patent, both domestic and foreign on said
inventions;

     

    b.           To
secure, establish and maintain title in Kronos, its successors and assigns, to
said inventions, applications and letters patent, including making such title of
lawful and public record;

     

    c.           To
cooperate fully with Kronos, both during and after the Term of this Agreement,
with respect to the procurement, perfection of title, maintenance and
enforcement of copyrights, patents and other intellectual property rights (both
in the United States and foreign countries) relating to developments or
inventions; to sign all papers, including, without limitation, copyright
applications, patent applications, declarations, oaths, formal assignments,
assignments of priority rights, and powers of attorney, which Kronos may
deem

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    necessary
or desirable in order to protect its rights and interests in any development or
invention.  If Kronos is unable, after reasonable effort, to secure
Advisor’s signature on any such papers, any executive officer of Kronos shall be
entitled to execute any such papers as his agent and attorney-in-fact, and
Advisor hereby irrevocably designates and appoints each executive officer of
Kronos as his agent and attorney-in-fact to execute any such papers on Advisor’s
behalf, and to take any and all actions as Kronos may deem necessary or
desirable in order to protect its rights and interests in any development or
invention, under the conditions described in this sentence.

     

    d.           To
defend, establish or otherwise preserve the validity of said letter patent
against any and all infringers.

     

    4.           Advisor
shall promptly disclose to Kronos or its designees, in writing, all inventions
(regardless of whether such inventions are related to the business, products or
services of Kronos or any of its affiliated companies) made or conceived, either
solely or jointly with others, during the term of this Agreement and for six (6)
months thereafter.

     

    5.           Advisor
shall within two (2) days after written request by Kronos turn over to Kronos
all plans, notes, blueprints, designs, models, laboratory notebooks, etc.,
relating to inventions conveyed or covered by this Agreement, and Advisor hereby
assigns, sells, transfers and sets over unto Kronos all right, title and
interest in and to said plans, notes, blueprints, designs, models, laboratory
notebooks, etc.

     

    III.           Compensation;
Indemnification.

     

    1.           Advisor’s
Fee.  Kronos shall pay to Advisor and Advisor shall receive
from Kronos the Advisor’s Fee as described in Attachment A Statement of
Work.  Any compensation payable to any person other than the Advisor
in connection with the provision of the Advisor’s services hereunder shall be
paid out of the compensation described in this Section III.  The
compensation to be paid in accordance with Attachment A is the sole compensation
to be paid by Kronos in connection therewith.

     

    2.           Expense
Reimbursement.  Kronos shall reimburse pre-approved travel or
other pre-approved expenses incurred by Advisor in connection with services to
be rendered by Advisor pursuant to this Agreement, as expressly agreed in
advance and writing by Kronos.  Pre-approved travel and pre-approved
other expenses will be reimbursed within thirty (30) business days from receipt
of expense documentation.

     

    3.           Indemnification.  The
Company agrees that (a) if Advisor is made a party, or is threatened to be made
a party, to any “Proceeding” (defined
as any threatened or actual action, suit or proceeding whether civil, criminal,
administrative, investigative, appellate or other) by reason of the fact that he
is or was a contractor, agent or consultant of the Company, or (b) if any “Claim” (defined as
any claim, demand, request, investigation, dispute, controversy, threat,
discovery request or request for testimony or information) is made, or
threatened to be made, that arises out of or relates to the Advisor’s service in
any of the foregoing capacity or to the Company, then Advisor shall promptly be
indemnified and held harmless by the Company

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    against
any and all costs, expenses, liabilities and losses (including, without
limitation, attorney’s fees, judgments, damages, interest, expenses of
investigation, penalties, fines, taxes or penalties and amounts paid or to be
paid in settlement) incurred or suffered by Advisor in connection therewith;
provided that such Claims are not based upon or arise out of (i) any negligent
act or omission of Advisor, (ii) any act or omission of Advisor in breach of
this Agreement, subject to the notice and cure period set forth herein, or (iii)
criminal and/or fraudulent acts or omissions of Advisor.  Such
indemnification shall continue as to Advisor even if he has ceased to be a
contractor, agent or consultant of the Company and shall inure to the benefit of
Advisor’s successors, assigns, heirs, executors and
administrators.  The Company shall reimburse Advisor reasonable and
necessary costs and expenses incurred by him in connection with any such Proceeding or
Claim within thirty (30) days of written submission of a request for
reimbursement and provision of all documentation or information to support the
request.

     

    IV.           Advisors Warranties,
Representations and Additional Covenants.

     

    1.           Full
Authority.  Advisor warrants and represents to Kronos
that:  (i) Advisor has the full unrestricted right to enter into this
Agreement; (ii) by entering into this Agreement, Advisor is not violating or
otherwise contravening any agreement to which Advisor is bound or any applicable
law; and (iii) no person must consent to the execution and performance of this
Agreement by Advisor.

     

    2.           Fraud and Bad
Acts.  Advisor represents and warrants to Kronos that Advisor
is not now, and covenants that Advisor shall not in the future be, a person (i)
subject to an order of any regulator under applicable law, or (ii) convicted
within the previous ten (10) years of a felony.

     

    3.           Compliance with all
laws.  Advisor covenants with Kronos that Advisor shall comply
with all applicable laws in connection with the execution and performance of
this Agreement.

     

    4.           Full Disclosure to
Kronos.  Without limiting any other provision of this
Agreement, Advisor agrees to fully disclose all activities in which Advisor is
engaged other than pursuant to this Agreement.

     

    V.           Term and
Termination.

     

    1.           The
term of this Agreement is six (6) months from the Effective Date (the “Term”).

     

    2.           This
Agreement may be terminated immediately by either party, without notice, in the
event that either party commits a material breach of this Agreement, which
breach remains uncured for 10 business days after written notice
thereof.

     

    3.           In
the absence of a material breach by Advisor, Kronos may terminate this Agreement
upon ten (10) days prior written notice to Advisor.  In the event of
termination

     

    
      
         

      

      
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    pursuant
to this section V(3), Advisor shall be entitled to all compensation which has
been earned pursuant to this Agreement prior to and including such date of
termination.

     

    VI.           Miscellaneous.

     

    1.           Binding Effect and Survival
of Rights.  This Agreement will benefit and bind the parties
and their respective personal representatives, executors, administrators, heirs,
legatees, devisees, successors and assigns.

     

    2.           Notices.  All
notices, demands, requests and other communications required or permitted to be
given by any provision of this Agreement will be in writing addressed as
follows:

     

    
      	
              If to
      Kronos:

            	
              Kronos
      Advanced Technologies, Inc.

              464
      Common Street, Suite 301

              Belmont,
      MA 02478 

            
	 	
              Telephone:    
       
Attention:

            	703-821-1905
Richard
      F. Tusing

              Chief
      Operating Officer  

            
	 	 	 
	
              If to
      Advisor:

            	
              Daniel
      R. Dwight

            

    

     

     

    Any such notice, demand, request or
communication will be deemed to have been given and received for all purposes
under this Agreement: (a) on the date of delivery when delivered in person; (b)
on the date of transmission when delivered by facsimile transmission (provided
such transmission is confirmed by transmission receipt and such notice is
promptly confirmed by some other means described herein); and/or (c) on the next
business day after the same is deposited with a nationally recognized overnight
delivery service that guarantees overnight delivery; provided, however, if the
day such notice, demand, request or communication will be deemed to have been
given and received as aforesaid is not a business day, such notice, demand,
request or communication will be deemed to have been given and received on the
next business day.

    

    Any party to this Agreement may change
such parties address for the purpose of notice, demands, requests and
communications required or permitted under this Agreement by providing written
notice of such change of address to all of the parties by written notice as
provided herein.

    

    3.           Interpretation.  The
parties acknowledge to each other that each party has reviewed and participated
in the negotiation of this Agreement.  Accordingly, the normal rule
of

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    construction
to the effect that any ambiguities are resolved against the drafting party will
not be employed in the interpretation of this Agreement.

     

    4.           Incorporation.  The
Recitals, all exhibits and schedules attached hereto, or to be attached hereto,
and all other agreements and instruments referred to herein are hereby
incorporated by reference into this Agreement as fully as if copied herein
verbatim.

     

    5.           Further
Assurances.  The parties further agree that, upon request, they
will do such further acts and deeds and will execute, acknowledge, deliver and
record such other documents and instruments as may be reasonably necessary from
time to time to evidence, confirm or carry out the intent and purpose of this
Agreement.

     

    6.           Lawful
Authority.  Each party executing this Agreement hereby
represents and warrants to all other parties that they have been fully
authorized to execute and deliver this Agreement.

     

    7.           Attorneys
Fees.  If any legal action or other proceeding (including
arbitration pursuant to this Agreement) is brought for the enforcement of this
Agreement, or because of any alleged dispute, breach, default or
misrepresentation in connection with any provisions of this Agreement, the
prevailing party will be entitled to recover reasonable attorneys fees, court
costs and all reasonable expenses, even if not taxable or assessable as court
costs (including, without limitation, all such fees, costs and expenses incident
to appeal) incurred in that action or proceeding in addition to any other relief
to which such party may be entitled.

     

    8.           Waivers and
Consents.

     

    (i)           Each
and every waiver of any provision of this Agreement must be in writing and
signed by each party whose interests are adversely affected by such
waiver.

     

    (ii)          Unless
otherwise expressly provided in a waiver, no such waiver granted in any one
instance will be construed as a continuing waiver applicable in any other
instance.

     

    (iii)          No
waiver by any party to this Agreement to or of any breach or default by any
other party to this Agreement in the performance by such other party of its
obligations hereunder will be deemed or construed to be a waiver of any breach
or default of any other party of the same or any subsequent obligations
hereunder.

     

    (iv)          Subject
to applicable statutes of limitation, the failure on the part of any party to
this Agreement to complain of any act or failure to act of any other party to
this Agreement or to declare such other party in default, irrespective of how
long such failure continues, shall not constitute a waiver by the non-defaulting
party of its rights hereunder.

     

    (v)           Each
and every consent by any party to this Agreement must be in writing signed by
the party to be bound thereby.  No consent will be deemed or construed
to be a consent to any action except as described in such writing.

     

    
      
         

      

      
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    9.           
Section
Headings.  The Section headings contained in this Agreement are
for reference purposes only and will not affect the interpretation of this
Agreement.

     

    10.           Governing
Law.  This Agreement will be governed in all respects,
including validity, interpretation and effect by, and will be enforceable in
accordance with, the internal laws of the State of Massachusetts without regard
to conflicts of laws principles.

     

    11.           Severability.  If
any provision of this Agreement is held to be unlawful, invalid or unenforceable
under present or future laws effective during the term hereof, such provision
will be fully severable, and this Agreement will be construed and enforced
without giving effect to such unlawful, invalid or unenforceable
provision.  Furthermore, if any provision of this Agreement is capable
of two (2) constructions, one of which would render the provision void, and the
other which would render the provision valid, then the provision will have the
meaning which renders it valid.

     

    12.           Counterpart
Execution.  This Agreement may be executed in multiple
counterparts, each one of which will be deemed an original, but all of which
will be considered together as one and the same instrument.  Further,
in making proof of this Agreement, it will not be necessary to produce or
account for more than one (1) such counterpart.  Provided all parties
have signed at least one counterpart, the execution by a party of a signature
page hereto will constitute due execution and will create a valid, binding
obligation of the party so signing, and it will not be necessary or required
that the signatures of all parties appear on a single signature page
hereto.

     

    13.           Amendments.  Each
and every modification and amendment of this Agreement must be in writing and
except as otherwise provided herein, signed by all the parties
hereto.

     

    14.           Entire
Agreement.  This Agreement and that certain Severance Agreement
dated as of May 16, 2008 by and between the parties (the “Severance Agreement”)
(including all agreements referenced in the “Entire Agreement” section of the
Severance Agreement) contain the entire agreement between the parties regarding
the subject matter hereof.  Any prior agreements, discussions or
representations not expressly contained in this Agreement will be deemed to be
replaced by the provisions hereof, and no party has relied on any such prior
agreements, discussions or representations as an inducement to the execution
hereof.  To the extent there is any conflict between this Agreement
and the Severance Agreement regarding Advisor’s provision of consulting services
to the Company, this Agreement shall control.

     

    15.           Rules of
Construction.  (a) All terms in this Agreement in the singular
and plural will have comparable meanings when used in the plural and vice-versa
unless otherwise specified;  (b) the words hereof, herein, hereunder
and words of similar import when used in this Agreement, will refer to this
Agreement as a whole and not any particular provision of this Agreement and all
references to articles, sections and subdivisions thereof are to this Agreement
unless otherwise specified;  (c) the words include, includes and
including will be deemed to be followed by the phrase without
limitation;  (d) all pronouns and any variations thereof will
be

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    deemed to
refer to masculine, feminine or neuter, singular or plural, as the identity of
the individual, individuals, entity or entities may require;  (e) all
references to documents, contracts, agreements or instruments will include any
and all supplements and amendments thereto;  and (f) all accounting
terms not specifically defined herein will be construed in accordance with
generally accepted accounting principles or generally accepted auditing
standards then applied in the United States.

     

    16.           Forum
Selection.  ADVISOR AND KRONOS DO HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMIT TO THE SOLE AND EXCLUSIVE JURISDICTION OF THE COURTS OF
THE STATE OF MASSACHUSETTS AND DO FURTHER IRREVOCABLY AND UNCONDITIONALLY
STIPULATE AND AGREE THAT THE FEDERAL COURTS IN THE STATE OF MASSACHUSETTS OR THE
STATE COURTS OF MASSACHUSETTS WILL HAVE JURISDICTION TO HEAR AND FINALLY
DETERMINE ANY DISPUTE, CLAIM, CONTROVERSY OR ACTION ARISING OUT OF OR CONNECTED
(DIRECTLY OR INDIRECTLY) WITH THIS AGREEMENT THAT IS NOT SUBJECT TO ARBITRATION,
OR TO ENTER A JUDGMENT CONSISTENT WITH ANY ARBITRATION AWARD. ADVISOR AND KRONOS
FURTHER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY AND ALL OBJECTIONS OR
DEFENSES TO SAID JURISDICTION.  EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT SERVICE UPON ANY PARTY HERETO SHALL
BE MADE BY DELIVERY VIA PRIORITY OVERNIGHT DELIVERY (E.G., FEDEX) AND BY
FACSIMILE OF A COPY OF SUCH PROCESS TO THE ADDRESS OF SUCH PARTY FOR NOTICES TO
SUCH PARTY AS SET FORTH IN THIS AGREEMENT LETTER (OR SUCH DIFFERENT ADDRESS AT
SUCH PARTY WILL HEREAFTER SPECIFY IN ACCORDANCE WITH THE TERMS OF THIS
AGREEMENT).  THE FOREGOING CONSENT, IN ADVANCE, TO THE JURISDICTION OF
THE AFOREMENTIONED COURTS AND THE AFOREMENTIONED METHOD OF SERVICE ARE MATERIAL
INDUCEMENTS FOR THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT.

     

    17.           Personal Nature of
Undertaking.  Advisor acknowledges that the engagement of
Advisor’s services hereunder by Kronos is personal to Advisor, and such services
shall not be delegated or assigned to any other Person or Advisor without
Kronos’ express prior written consent, which may be withheld in Kronos’ sole and
absolute discretion.

     

    [signatures
appear on next page]

     

     

     

    
 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

    
 

    IN WITNESS WHEREOF, the
parties have executed this Advisors Agreement effective as of the date signed by
the parties, as shown below.

     

    
      
        	 
      	Kronos Advanced
      Technologies: 	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:    
      

              	/s/
      Richard F Tusing  	 
      
	 
      	 
      	Richard
      F Tusing  	 
      
	 
      	 
      	Title:  Chief
      Operating Officer  	 
      

      

    

    
 

    
      
        	 
      	Advisor: 
	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:    
      

              	/s/
      Daniel R. Dwight  	 
      
	 
      	 
      	Daniel
      R. Dwight  	 
      
	 
      	 
      	 
      	 
      

      

    

     

     

     

     

    
 

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    ATTACHMENT
A

    

    

    Statement of Work
#1

    

    

    I.
 Dwight to respond to verbal and written inquiries from R. Tusing and B.
Salzman concerning Transition Services as defined in the Severance Agreement and
General Release.

    

    II.
 Dwight to create Kronos work product or commentary to Kronos work product
or other consulting services as requested in writing by R. Tusing and B.
Salzman.

    

    Advisor’s
Fee shall be $300 per hour.  Monthly invoice with hours per approved
Statement of Work # to be sent to R. Tusing at the Kronos Corporate address and
copy via email.

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