Document:

exhibit101.htm - Generated by SEC Publisher for SEC Filing

 

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (the “Agreement”) made as of the 1st day of March, 2007 (“Effective Date”) by and between ColorStars Group (the “Company”), and Wei-Rur Chen (“Employee”).  

W I T N E S S E T H :

WHEREAS, Employee is the Chairman, President, and CEO of the Company;

WHEREAS, the Company wishes to retain Employee on the terms and conditions hereinafter set forth; and 

WHEREAS, Employee desires to work for the Company on the terms and conditions hereinafter set forth; 

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

1.         Employment; Term.  Effective the date first written above, the Company hereby employs Employee, and Employee hereby accepts employment with the Company, in accordance with and subject to the terms and conditions set forth herein.  The term of this Agreement shall commence on the day first written above and, unless earlier terminated in accordance with Paragraph 5 hereof, shall terminate on the day ending Five (5) years from the Effective Date (the “Term”).  Thereafter, unless sooner terminated as provided in this Agreement.

2.         Duties

(a)        During the Term, Employee shall serve as Chairman, President and CEO.

(b)        Employee shall have such authority and responsibility as may reasonably be assigned to him by the Board of Directors of the Company in its discretion.

(c)        During the Term, Employee shall devote the majority of his business time and best efforts to the business and affairs of the Company, except as otherwise specifically permitted by the Company. 

(d)       Employee agrees to perform services on behalf of the Company at least five (5) days a week in the Company’s headquarters office.   

3.         Salary, Bonuses and Benefits.  As compensation and consideration for the performance by Employee of his obligations to the Company under this Agreement, Employee shall be entitled to the compensation and benefits described in Exhibit A attached hereto and made a part hereof (subject, in each case, to the provisions of Section 5 hereof).

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4.         Expenses.  The Company agrees to reimburse Employee for all reasonable and necessary travel, business entertainment, office materials, and other business expenses.  Such reimbursements shall be made by the Company within a reasonable time in accordance with the Company’s standard procedures.  Employee agrees to provide vouchers for all of said expenses in accordance with applicable Internal Revenue Service rules and regulations.

5.         Termination.  Employee’s employment hereunder may be terminated prior to the end of the Term under the following circumstances:

(a)        Death.  Employee’s employment hereunder shall terminate upon Employee’s death.

(b)        Total Disability.  The Company may terminate Employee’s employment hereunder at any time after Employee becomes “Totally Disabled.”  For purposes of this Agreement, Employee shall be “Totally Disabled” upon Employee’s inability to perform his duties and responsibilities contemplated under this Agreement for a period of more than 120 consecutive days due to physical or mental incapacity or impairment.  Such termination shall become effective Thirty (30) days after the Company gives notice of such termination to Employee, or to Employee’s spouse or legal representative, in accordance with Paragraph 8 hereof.

(c)        Termination by the Company for Cause.  The Company may terminate Employee’s employment hereunder for Cause at any time after providing written notice to Employee.  For purposes of this Agreement, the term “Cause” shall mean any of the following:  (i) perpetration by Employee of an intentional and knowing fraud against or affecting the Company or any of its affiliates, or any customer, client, agent or employee of the Company, or any of its affiliates; (ii) any willful or intentional act by Employee that is reasonably expected, in the Company’s good faith judgment, to materially injure the reputation, business or business relationships of the Company or any of its affiliates; (iii) conviction (including conviction on a nolo contendere plea) of a felony involving fraud, dishonesty or moral turpitude as determined by a non-appealable decision of a court of competent jurisdiction; (iv) the neglect or failure or refusal of Employee to perform Employee’s duties hereunder (other than as a result of total or partial incapacity due to physical or mental illness); (v) the breach of a covenant set forth in Paragraph 7 hereof; or (vi) any other material breach of this Agreement; provided, however, that in the circumstances described in clauses (iv) or (vi) of this Paragraph 5(c) Employee has failed to cure such neglect, failure, refusal or breach within ten (10) days after the receipt of written notice thereof describing in reasonable detail such neglect, failure, refusal or breach.

(d)       Termination by the Company Without Cause.  The Company may terminate Employee’s employment at any time and for any reason or no reason upon written notice.  

Employment Agreement (00156422) (2)                                  2/12
 

 

 

6.         Compensation Following and Effects of Termination Prior to the End of the Term.  In the event that Employee’s employment hereunder is terminated prior to the end of the Term, Employee shall be entitled only to the following compensation and benefits upon such termination and such other following effects of termination shall apply:

(a)        Termination by Reason of Death or Total Disability or by the Company for Cause.  In the event that Employee’s employment is terminated prior to the expiration of the Term by reason of Employee’s death or Total Disability or for Cause pursuant to Paragraph 5(a), 5(b) or 5(c) hereof, respectively, the Company shall pay the following amounts to Employee (or Employee’s spouse or estate, as the case may be):

                        i.          any accrued but unpaid Base Salary (as defined in, and determined pursuant to, Exhibit A attached hereto) for services rendered to the date of termination less any amounts received by Employee under the Company’s long-term disability plan;

                        ii.         any accrued but unpaid Incentive Commission (as defined in, and determined pursuant to, Exhibit A attached hereto) due Employee as of the date of termination;

                        iii.        any accrued but unpaid expenses required to be reimbursed pursuant to Section 4 hereof; and

                        iiii.       any accrued but unpaid vacation pay.

The benefits to which Employee and/or Employee’s family may be entitled upon such termination pursuant to the plans, programs and arrangements referred to in Exhibit A attached hereto shall be determined and paid in accordance with the terms of such plans, programs and arrangements.

 

(b)        Termination by the Company Without Cause.  

(i)         In the event that Employee’s employment is terminated by the Company without Cause, the Company shall pay the following amounts to Employee:

                                    1.         any accrued but unpaid Base Salary (as defined in, and determined pursuant to, Exhibit A attached hereto) for services rendered to the date of termination; 

                                    2.         any accrued but unpaid Incentive Commission (as defined in, and determined pursuant to, Exhibit A attached hereto) due Employee as of the date of termination;

                                    3.         any accrued but unpaid expenses required to be reimbursed pursuant to Section 4 hereof;

                                    4.         any accrued but unpaid vacation pay; and

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                                    5.         If the employee is terminated without cause the employee shall be entitled to receive, continued payment of Twelve (12) months of the Base Salary and bonus payments (as defined in, and determined pursuant to, Exhibit A attached hereto), that he otherwise would have been entitled to receive pursuant to Exhibit A . 

(ii) The benefits to which Employee and/or Employee’s family may be entitled upon termination of Employee’s employment by the Company without Cause pursuant to the plans, programs and arrangements referred to in Exhibit A attached hereto and shall be determined and paid in accordance with the terms of such plans, programs and arrangements.

 

(c)        No Other Benefits or Compensation.  Except as may be specifically provided under this Agreement or under the terms of any incentive compensation, employee benefit or fringe benefit plan applicable to Employee at the time of the termination of Employee’s employment prior to the end of the Term, Employee shall have no right to receive any other compensation or payment, or to participate in any other plan, arrangement or benefit, with respect to any future period after such termination.

7.         Noncompetition and Nonsolicitation; Nondisclosure of Proprietary Information; Surrender of Records.  

(a)        Noncompetition; Nonsolicitation.

(i)         Employee acknowledges and recognizes the highly competitive nature of the Company’s business and that Employee’s knowledge, experience and expertise, his position with the Company and access to and use of the Company’s confidential records and proprietary information renders Employee special and unique.  In consideration of the amounts that may hereafter be paid to Employee pursuant to this Agreement (including pursuant to Paragraph 3 hereof), Employee agrees that during the Term and the Covered Term (as defined below), Employee shall not, directly or indirectly (as defined below), (x) engage on his own behalf in a business that produces catalyst based emission control or remediation devices or processes(as defined below), or (y) own any interest in or engage in or perform any service for any person, firm, corporation or other entity, either as a partner, owner, employee, consultant, agent, officer, director or shareholder that (A) derives substantial revenues from the production of catalyst  based emission control or remediation devices or processes or (B) is a meaningful competitor of the Company in the production of catalyst based emissions control or remediation devices or processes; Notwithstanding the foregoing, in the event the Employee is terminated without cause, then in that event, Employee may engage in a related business so long as Employee is not engaged directly or indirectly  in the design or production of Catalyst Based Emission Control or Remediation Devices or Processes (as defined herein). To the extent applicable, Employee will be governed by the non solicitation provisions of this Agreement even if Employee is permitted to engage in a related business.

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(ii)        In further consideration of the payment by the Company to Employee of amounts that may hereafter be paid to Employee pursuant to this Agreement (including pursuant to Paragraph 3 hereof), Employee agrees that during the Term and during the Covered Time, Employee shall not (a) directly or indirectly solicit or attempt to solicit or participate in the solicitation of or otherwise advise or encourage any employee, agent, consultant or representative of, or vendor or supplier to, the Company or any of its affiliates to terminate his, her or its relationship with the Company or any of its affiliates or to reduce the amount of business it does with the Company or any of their affiliates; or (b) directly or indirectly solicit or attempt to solicit or participate in the solicitation of or otherwise advise or encourage any employee, agent, consultant or representative of the Company or any of its affiliates to become an employee, agent, representative or consultant of or to any other individual or entity.

(iii)       During the Term and during the Covered Time, Employee agrees that upon the earlier of Employee’s (x) negotiating with any Competitor (as defined below) concerning the possible employment of Employee by the Competitor, (y) receiving an offer of employment from a Competitor, or (z) becoming employed by a Competitor, Employee will immediately provide notice to the Company of such circumstances and provide copies of this Paragraph 7 to the Competitor.  Employee further agrees that the Company may provide notice to a Competitor of Employee’s obligations under this Agreement, including, without limitation, Employee’s obligations pursuant to this Paragraph 7.  For purposes of this Agreement, “Competitor” shall mean during the Term and the Covered Term, any entity that then engages, directly or indirectly, in the production of emissions control or remediation devices or processes.

(iv)       Employee understands that the provisions of this Paragraph 7(a) may limit Employee’s ability to earn a livelihood in a business similar to the business of the Company but nevertheless agrees and hereby acknowledges that the consideration provided under this Agreement (including pursuant to Paragraph 3 hereof) is sufficient to justify the restrictions contained in such provisions.  In consideration thereof and in light of Employee’s education, skills and abilities, Employee agrees that Employee will not assert in any forum that such provisions prevent Employee from earning a living or otherwise are void or unenforceable or should be held void or unenforceable; provided, however, that no provision of Paragraph 7(a)(i) hereof shall prohibit Employee from merely owning (i.e., having no participation or involvement in the management) no more than 10% of the outstanding equity securities of any actively traded public entity.

(v)        For purposes of any provision of Paragraph 7 hereof, (x) “Covered Time” shall mean the Twenty-Four (24) months immediately following the termination or expiration of this Agreement, (y) “directly or indirectly” means in Employee’s individual capacity for his own benefit or as a shareholder, partner, member or other principal, officer, director, employee, agent or consultant of or to any individual, corporation, partnership, joint 

venture, limited liability company, business trust, association or any other business entity whatsoever. 

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(b)        Proprietary Information.  Employee acknowledges that during the course of Employee’s employment with the Company, Employee will necessarily have access to and make use of proprietary information and confidential records (as those terms are defined below) of the Company and its affiliates.  Employee covenants that Employee shall not during the Term or at any time thereafter, directly or indirectly, use for Employee’s own purpose or for the benefit of any individual or entity other than the Company and its affiliates, nor otherwise disclose to any individual or entity, any proprietary information of which Employee has knowledge, unless such disclosure has been specifically authorized in writing by the Company or such affiliates or is required by law.  Employee acknowledges and understands that the term “proprietary information” includes, but is not limited to:  (i) all ideas, inventions, know-how, technology, formulas, designs, software, programs, algorithms, products, systems, applications, processes, procedures, methods and improvements and enhancements, and all related documentation, whether or not patentable, copyrightable or entitled to other forms of protection, utilized by the Company or its affiliates or which are, directly or indirectly, related to the business, products or services, or proposed business, products or services, of the Company or its affiliates; (ii) the name and/or address of any customer or vendor of the Company or its affiliates or any information concerning the transactions or relations of any customer or vendor of the Company or its affiliates with the Company or any of its stockholders, principals, directors, officers, employees or agents; (iii) any financial information relating to the Company or its affiliates and their respective businesses, including, without limitation, information relating to pricing or marketing methods, sales margins, cost or source of materials, supplies or goods, capital structure, operating results or borrowing arrangements; (iv) any information which is generally regarded as confidential or proprietary in any line of business engaged in by the Company or its affiliates; (v) any business plans, budgets, advertising or marketing plans; (vi) any information contained in any of the written or oral policies and procedures or manuals of the Company or its affiliates; (vii) any information belonging to customers, vendors or affiliates of the Company or its affiliates or any other individual or entity which the Company or its affiliates has agreed to hold in confidence; and (viii) all written, graphic and other material (in any medium whether in writing, on magnetic tape or in electronic or other form) relating to any of the foregoing.  Employee acknowledges and understands that information that is not novel or is not copyrighted, trademarked or patented, or eligible for such or any other protection, may nonetheless be proprietary information.  The term “proprietary information” shall not include information generally available to and known by the public or information that is or becomes available to Employee on a non-confidential basis from a source other than the Company (or any of its affiliates) or the Company’s stockholders, directors, officers, employees or agents (other than as a result of a breach of any obligation of confidentiality).

(c)        Confidentiality and Surrender of Records.  Employee shall not during the Term or at any time thereafter (irrespective of the circumstances under which Employee’s employment by the Company terminates), except as required by law or as is necessary for the performance of Employee’s duties under this Agreement, and only upon prior written notice thereof to the Company, directly or indirectly, publish, 

make known or in any manner disclose any confidential records to, or permit any inspection or copying of confidential records by, any individual or entity.  Employee shall not retain, and will deliver promptly to the Company, all copies of any of the same following termination of Employee’s employment hereunder for any reason or upon request by the Company.  For purposes of this Paragraph 7, “confidential records” means, without limitation, all correspondence, memoranda, files, manuals, books, lists, financial, operating or marketing records and customer and vendor records relating to or containing any proprietary information (in any medium whether in writing, on magnetic tape or in electronic or other form) or equipment of any kind which may be in Employee’s possession or under Employee’s control or accessible to Employee.  All confidential records shall be and remain the sole and exclusive property of the Company during the Term and thereafter.

Employment Agreement (00156422) (2)                                    6/12
 

 

 

(d)       Cooperation.  Employee shall, during the Term and thereafter, fully cooperate with the Company and its affiliates in connection with the prosecution or defense of any claim, action, arbitration, suit or proceeding against or by a third party relating to the Company or any of its subsidiaries or Employee or the performance of his services as an employee or officer of the Company or any of its affiliates, including, without limitation, providing access to Employee’s files and records that are relevant to such claim, action, arbitration, suit or proceeding and appearing as a witness in any such claim, action, arbitration, suit or proceeding.  During the Term and thereafter, Employee agrees to give Company notice of any such claim, action, arbitration, suit or proceeding by a third party promptly after receipt of any notice given in connection therewith to Employee by a party other than Company. 

(e)        No Other Obligations.  Employee represents that Employee is not precluded or limited in Employee’s ability to undertake or perform the duties described herein by any contract, agreement or restrictive covenant.  Employee covenants that Employee shall not employ the trade secrets or proprietary information of any other individual or entity in connection with Employee’s employment by the Company.

(f)        Developments the Property of the Company.  All discoveries, inventions, ideas, technology, formulas, designs, software, programs, algorithms, products, systems, applications, processes, procedures, methods and improvements and enhancements conceived, developed or otherwise made or created or otherwise produced by Employee at any time, alone or with others, and in any way relating to the present or proposed business, products or services of the Company or its affiliates, whether or not subject to patent, copyright or other protection and whether or not reduced to tangible form, during the period of Employee’s employment with the Company (“Developments”), shall be the sole and exclusive property of the Company.  Employee agrees to, and hereby does, assign to the Company, without any further consideration, all Employee’s right, title and interest throughout the world in and to all Developments.  Employee agrees that all such Developments that are copyrightable may constitute works made for hire under the copyright laws of the United States and, as such, acknowledges that the Company is the author of such Developments and owns all of the rights comprised in the copyright of such Developments and Employee hereby assigns to the Company without any further consideration all of the rights comprised in the copyright and other proprietary rights Employee may have in any such Development to the extent that it might not be 

considered a work made for hire.  There shall be excluded from this Paragraph 7(f) any Development produced by Employee (i) which is developed by Employee without the use of the Company’s property or facilities, (ii) which does not make use of any proprietary information or confidential records of the Company or any of its affiliates, and (iii) which does not relate to the present or proposed business, products or services of the Company or its affiliates or to the ongoing or planned product development efforts of the Company or its affiliates.  Employee shall make and maintain adequate and current written records of all Developments and shall disclose all Developments promptly, fully and in writing to the Company promptly after development of the same, and at any time upon request; provided, however, that Developments excluded under the preceding sentence shall be received by the Company in confidence.

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(g)        Unconditional Assignment of Intellectual Property.  Employee acknowledges that all intellectual property or proprietary information, enhancements to intellectual property or processes developed during the scope of Employee’s association and or employment with the Company prior to the effective date of this Agreement and all intellectual property, enhancements to existing intellectual property or processes developed by Employee during the term of this Agreement are the exclusive property of the Company.  

(h)        Enforcement.  Employee acknowledges and agrees that, by virtue of Employee’s position with the Company, the services to be rendered by Employee to the Company under this Agreement and Employee’s access to and use of confidential records and proprietary information, any violation by Employee of any of the undertakings contained in this Paragraph 7 would cause the Company or its affiliates immediate, substantial and irreparable injury for which it has no adequate remedy at law.  Accordingly, Employee agrees that in the event of a breach or threatened breach by Employee of any said undertakings, the Company will be entitled to temporary and permanent injunctive relief in any court of competent jurisdiction (without the need to post bond and without proving that damages would be inadequate).  The rights and remedies provided for in this Paragraph 7 are cumulative and shall be in addition to rights and remedies otherwise available to the parties hereunder or under any other agreement or applicable law.

8.         Notices.  Any notice, consent, request or other communication made or given in accordance with this Agreement shall be in writing and shall be deemed to have been duly given when actually received or, if mailed, three (3) days after mailing by registered or certified mail, return receipt requested, to those person’s listed below at their respective addresses listed below or at such other address or person’s attention as each party may specify by notice to the other in accordance with the provisions of this Paragraph 8:

 

 

 

 

 

Employment Agreement (00156422) (2)                                    8/12
 

 

 

If to the Company:

ColorStars Group

300 Center Ave. Ste. 202

Bay City, MI 48708

FAX: (989) 509-5924

 

If to Employee:

Chen, Wei-Rur

10F, No. 568, Jungjeng Road,

Sindian City, Taipei County, Taiwan

FAX: +886-2-8667-1400

 

9.         Assignability; Binding Effect. This Agreement is a personal contract calling for the provision of unique services by Employee, and Employee’s rights and obligations hereunder may not be sold, transferred, assigned, pledged or hypothecated.  In the event of any attempted assignment or transfer of rights hereunder by Employee contrary to the provisions hereof (other than as may be required by law), the Company will have no further liability for payments hereunder.  The rights and obligations of the Company hereunder will be binding upon and run in favor of the successors and assigns of the Company.  This Agreement does not create, and shall not be interpreted or construed to create, any rights enforceable by any person not a party to this Agreement, except as specifically provided in Paragraph 6 hereof.

10.       Complete Understanding; Amendment; Waiver.  This Agreement constitutes the complete understanding between the parties with respect to the employment of Employee and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof, and no statement, representation, warranty or covenant has been made by either party with respect thereto except as expressly set forth herein.  This Agreement shall not be altered, modified, amended or terminated except by a written instrument signed by each of the parties hereto.  Any waiver of any term or provision hereof, or of the application of any such term or provision to any circumstances, shall be in writing signed by the party charged with giving such waiver.  Waiver by either party hereto of any breach hereunder by the other party shall not operate as a waiver of any other breach, whether similar to or different from the breach waived.  No delay on the part of the Company or Employee in the exercise of any of their respective rights or remedies shall operate as a waiver thereof, and no single or partial exercise by the Company or Employee of any such right or remedy shall preclude other or further exercise thereof.

11.       Severability.    If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Agreement, or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be enforced to the fullest extent permitted by law.  To the extent that a court of competent jurisdiction determines that Employee breached any undertaking in Paragraph 7 hereof, the Company’s obligations to make payments hereunder shall immediately cease, provided that the Company shall be liable for such payments in the event 

that the determination of such court is overturned or reversed by any higher court.  If the final judgment of a court of competent jurisdiction declares that any provision of this Agreement, including, without limitation, any provision of Paragraph 7 hereof, is invalid or unenforceable, the parties hereto agree that the court making the determination of invalidity or unenforceability shall have the power, and is hereby directed, to reduce the scope, duration or area of the provision, to delete specific words or phrases and to replace any invalid or unenforceable provision with a provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable provision, and this Agreement shall be enforceable as so modified.

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12.       Survivability.  The provisions of this Agreement which by their terms call for performance subsequent to termination of Employee’s employment hereunder, or of this Agreement, shall so survive such termination.

13.       Governing Law; Consent to Jurisdiction.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Michigan applicable to agreements made and to be wholly performed within the State without regard to its conflict of laws provisions.  Any action to enforce this Agreement must be brought in a United States Federal court situated in the Bay County. Each party hereby waives the right to claim that any such court is an inconvenient forum, or that there is a more convenient forum, for the resolution of any such action.

14.       Representation.  Employee represents that he has either been provided or has consulted with independent counsel and financial advisors prior to executing this Agreement and that this Agreement has been presented to Employee based upon the recommendation of the Company’s compensation committee and unanimous consent of the Company’s independent board.          

15.       Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

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16.       Titles and Captions.  All paragraph titles or captions in this Agreement are for convenience only and in no way define, limit, extend or describe the scope or intent of any provision hereof.

 

IN WITNESS WHEREOF, each of the parties hereto has duly executed this Employment Agreement as of the date first above written.

COLORSTARS GROUP

                                    By:________________________________

                                         Name: Wei-Rur Chen

                                          Title:  Chairman

EMPLOYEE

                                    ___________________________________

                                    Wei-Rur Chen

Employment Agreement (00156422) (2)                                  11/12
 

 

 

EXHIBIT A TO EMPLOYMENT AGREEMENT

 

            Employee shall receive the following compensation and benefits for the performance of all his services under the Employment Agreement, dated as of March 1st, 2007, to which this Exhibit A is attached.  Capitalized terms used, but not defined, in this Exhibit A shall have the same meanings as those in such Employment Agreement.

 

(a)        Salary.  The Company shall pay Employee a base salary (the “Base Salary”) of  One Hundred and Twenty Thousand dollars (US $120,000.00) per annum, payable in accordance with the Company’s payroll practices and subject to all legally required or customary withholdings. 

(a1)     Bonus.  The Company shall pay Employee a bonus salary (the “Bonus Salary”) of Twenty Thousand dollars (US $20,000.00) per annum starting January 1st, 2008, payable in accordance with the Company’s payroll practices and subject to all legally required or customary withholdings. This bonus salary will be rolled up on a quarterly basis and payable at the end of each quarter starting March 31st, 2008.

(b)        Vehicle Allowance. In addition to the base salary, the employee shall also be entitled to a vehicle allowance of US $6,000.00 per annum.

(c)        If before the end of the contract on February 29th, 2012 there is an Acquisition of the corporation, the Executive shall be paid an additional bonus of One Hundred Thousand Dollars (US $100,000.00) and 50% below market valued stock options and shall be entitled to such additional bonus upon completion of the transaction. The Stock Options shall have an exercise period of two (2) years from the date of award.  For purposes of this Section (c), “Change of Control” shall mean a buy out or take over of the Company whereby more than thirty-four percent (34%) of the Company’s common stock is acquired directly by a person or entity.

(d)       The Compensation Committee ratified by the Board of Directors Board of Directors shall grant the Executive stock options after the Board approves the Corporation’s annual financial statements, which amount shall be at the discretion of the Compensation Committee and ratified by the Board of Directors.

(e)        Benefits.  Employee shall be entitled to participate in any and all deferred compensation, 401(k) or other retirement plans, medical insurance, dental insurance, group health, disability insurance, pension and other benefit plans that are made generally available by Company to its executives who have similar responsibilities and perform similar functions as Employee.  Company in its sole discretion, may at any time amend or terminate its benefit plans or programs without any obligation or liability to Employee that has not accrued as of the date of such amendment or termination. 

(f)        Vacation.  Employee shall be entitled to receive Two (2) weeks of annual vacation in accordance with the Company’s vacation policy.  Employee shall be entitled to all paid holidays the Company makes available to its employees.

Initials: Company _____                   Employee  _____

Employment Agreement (00156422) (2)                                   12/12Unassociated Document

Exhibit 10.1

 

CONSULTANT SERVICE AGREEMENT

 

THIS CONSULTANT SERVICE AGREEMENT (the “Agreement”) is deemed made, entered into and effective this 2ndday of June, 2010 (the “Effective Date”).

Between:  KURRANT MOBILE CATERING, INC., Inc., a Colorado Corporation, with its principle business address at 194 Hermosa Circle, Durango, Colorado, 81301;

 

(the “Company").

And:  Lois Arkwright, a Canadian businesswoman having its principal place of business 60 rue Lapointe St-François, Laval, Qc, Canada, H7B 1A6

(the "Consultant").

WHEREAS:

	
A. 

	
The Company is a reporting company incorporated under the laws of the State of Colorado, U.S.A., and has its common shares listed for trading on the NASDAQ Over-The-Counter Bulletin Board;

	
B. 

	
The Company is involved in the principal business of editing and book publishing (collectively, the “Business”);

	
C. 

	
The Consultant is a professional within the field of event planning and promotional marketing and desires to provide professional consulting services to the Company;

	
D. 

	
The Company desires to retain the services of the Consultant and the Consultant desires to accept such mandate, in order to provide such related services to the Company (collectively, the “General Services”);

	
E. 

	
It is the intention of the Company and the Consultant (at times referred to herein as “Parties”) hereby to memoralize all such agreements and understandings between them relating to the terms and conditions of the General Services and, correspondingly, it is their further intention that the terms and conditions of this agreement (the “Agreement”) will replace, in their entirety, all such prior discussions, negotiations, understandings and agreements with respect to the General Services;

	
F. 

	
The Parties hereto have agreed to enter into this Agreement which replaces, in its entirety, all such prior discussions, negotiations, understandings and agreements, and, furthermore, which necessarily clarifies their respective duties and obligations with respect to the General Services to be provided hereunder, all in accordance with the terms and conditions of this Agreement;

	
G. 

	
The Parties do not wish this Agreement to be an employment agreement and intend to maintain an independent contractor relationship whereby the Consultant will continue to provide the General Services hereunder.  The Consultant shall allocate, in his discretion, the amount of time appropriate to providing General Services to the Company and the manner of the provision of any part of the General Services.  The Consultant may choose the location from which the Consultant’s General Services are rendered, select the times during which such General Services are rendered, and the optimal form of communication through which to deliver or provide such General Services.  Provided however, all decisions of the Consultant in rendering the General Services must be made in good faith, in the best mutual interests of the Consultant and the Company, and carried out in a manner that is generally consistent with accepted industry standards for the provision of such General Services.

 

  

1

  

	
H. 

	
This Agreement when duly signed and accepted by the Consultant; will define the duties, responsibilities and obligations of the Consultant; set forth and provide the consideration, expense allowances and any other consideration offered or provided to the Consultant hereunder; and as offered by the Company to other independent contractors providing professional services and consulting services to the Company.

NOW THEREFORE, in consideration of the recited ongoing relationship of the Parties and the promises, covenants, assurances, agreements and financial compensation provided by and between the Parties all of which is mutually acknowledged as good and sufficient consideration, by and between the Parties hereto, and the Company and the Consultant hereby promise, covenant and agree as follows:

	
1. 

	
Remuneration

	
1.1

	
The Company shall pay to the Consultant Four million five hundred thousand common shares to be issued in accordance with rule 144 of the Law, such shares being valued at .001 as per the Company’s board resolution attached herewith;.

	
1.2

	
N/A;

 

	
1.3

	
The compensation provided for herein will be inclusive of any remuneration otherwise payable to the Consultant may be for serving the Company or any subsidiary of the Company at the request of the Company during the currency of this Agreement.

	
2. 

	
Expenses

	
2.1

	
The Company shall reimburse the Consultant the full amount for all expenses reasonably incurred by the Consultant in the proper performance of the General Services, where such expenses are pre-approved under this Agreement, pre-approved by the Company’s Board of Directors (the “Board”) or the controller of the Company at any specified rate or amount, or upon the Consultant providing such receipts or other evidence as the Company may reasonably require.

	
3. 

	
Notice of Termination and Termination of the Agreement

	
3.1

	
Any Party can terminate this Agreement upon thirty (30) days written notice (herein called “Notice of Termination”) to the other Parties. If the Company terminates the Agreement prior to the Termination Date for any reason other than the Consultant’s gross negligence, all shares issued.

	
3.2

	
N/A

	
3.3

	
N/A

	
3.4

	
All expenses and other reimbursable cost payable to the Consultant hereunder are payable to the date of effective Notice of Termination as provided hereunder.

	
4. 

	
Term of Agreement

	
4.1

	
Unless otherwise agreed to in writing by the Parties, this Agreement will commence on the Effective Date and continue on for a Three months period at which date it shall terminate (herein called the “Termination Date”).  The Agreement may be renewed thereafter upon the mutual consent of the Parties.

 

  

2

  

 

	
5. 

	
General Services

	
5.1

	
During the continuance of this Agreement the Consultant also agrees to provide the services as more fully described in Schedule A attached herewith and such related services, as the Board may, from time to time, reasonably assign to the Consultant and as may be necessary for the ongoing maintenance and development of the Company’s various Business interests during the continuance of this Agreement (herein collectively described as the “General Services”). Any extraordinary mandate shall be the object of an agreement between the parties for additional compensation.

 

	
5.3

	
N/A;

	
5.4

	
The Consultant will perform the said General Services faithfully, diligently, to the best of the Consultant’s capabilities with the resources at its disposal and in the best interests of the Company.

	
5.5

	
N/A;

	
5.6

	
In any event the Consultant will not engage in any activity which is in a conflict of interests with its engagement under this Agreement or contrary to the best interests of the Company.  In that regard, the Consultant and the Company shall regularly consult and make necessary and appropriate records available to one another to assure them, and each of them, that no potential or actual conflict of interest arises in the performance of the responsibilities hereunder by the Consultant.

	
6. 

	
Confidentiality, Non-Disclosure, Non-Competition and Non-Circumvention

	
6.1

	
Subject to the provisions of Section 5.6 hereof to prevent conflicts of interest, the Consultant hereby covenants, promises and agrees that he will be provided with confidential, proprietary and valuable information by the Company about its clients, properties, prospects and financial circumstances from time to time during the currency of this Agreement, in order to permit the Consultant to properly, effectively and efficiently carry out its tasks, duties and activities hereunder. However, by providing such disclosure of Confidential Information to the Consultant, the Company relies on the Consultant to hold such information as confidential and only disclose the same to those parties, whether directors, officers, employees, agents, representatives or clients and contacts of the Consultant “who need to know”, in order that the Consultant can carry out the objects of this Agreement as provided for herein and as communicated as between the Company and the Consultant during the currency of this Agreement.  Due to the nature of the relationship of the Consultant to the Company no more precise limitations can be placed on the Consultant’s use and disclosure of Confidential Information received from the Company pursuant hereto than as described herein.

	
6.2

	
The general nature of the Agreement between the Parties is that the Consultant (also called the “Independent Contractor”) acting as an independent contractor and consultant to the Company, whereby the Independent Contractor will act on the Company’s behalf in the promotion of the Company’s interests and by way of introductions, consulting to and advising of the Company on matters related to the Business.  The result of these terms and conditions of disclosure of Confidential Information to the Independent Contractor by the Company is that the Independent Contractor will:

	
(a)

	
Only disclose such Confidential Information on a “need to know” basis, but it will be up to the Independent Contractor’s reasonable discretion in acting on behalf of and in the best interests of the Company to determine what group or groups “need to know” about such information pursuant to the nature and scope of this Agreement;

	
(b)

	
The disclosure of Confidential Information from the Company to the Independent Contractor further to the intents and purposes of this Agreement will prohibit the Independent Contractor from directly or indirectly using the Confidential Information in a manner that is in conflict with or contrary to the best interests of the Company, except with the Company’s written consent;

 

  

3

  

 

	
(c)

	
The Independent Contractor will not use Confidential Information in a manner that in the view of the Company would constitute a direct or indirect use for a purpose which is in competition with the best interests of the Company or would be a circumvention of the Company’s right or interest in a particular Business opportunity.

	
(d)

	
The meaning of Confidential Information (herein called “Confidential Information”) will include any information disclosed by the Company that is declared by the Company either verbally or in writing, depending on the means of communication of such Confidential Information by the Company to the Independent Contractor.

	
(e)

	
The restrictions on disclosure of Confidential Material do not apply to any of the following circumstances:

	
  

	
(i)

	
Information forming part of the public domain, which became such through no disclosure or breach of this Agreement on the Independent Contractor’s behalf;

	
  

	
(ii)

	
Information which the Independent Contractor can independently prove was received from a Third Party, which was legally entitled to disclose such information;

	
  

	
(iii)

	
Information which the Independent Contractor is legally obligated to disclose in compliance with any applicable law, statute, regulation, order, ruling or directive of an official, tribunal or agency which is binding on the Consultant, provided that the Independent Contractor must also provide the Company with notice of such disclosure at or before releasing or disclosing the Confidential Information to such official, tribunal or agency so that the Company is afforded an opportunity to file a written objection to such disclosure with such official, tribunal or agency.

	
6.3

	
The Independent Contractor understands, acknowledges and agrees that the covenants to keep the Confidential Information confidential and not disclose it to Third Parties, except in conformity with this Agreement, is necessary to protect the proprietary interests of Company in such Confidential Information and a breach of these covenants would cause significant loss to the Company in regard to its competitive advantage, market opportunities and financial investment associated with protection of its Confidential Information.

	
6.4

	
The Independent Contractor further understands, acknowledges and agrees that a breach of these covenants of confidentiality, non-disclosure, non-competition and non-circumvention under this Section 6 (in combination the “Covenants of Confidentiality, Non-Circumvention and Non Disclosure”), will likely cause such irreparable harm to the Company that damages alone would be an inadequate remedy and the Independent Contractor consent and agree such equitable remedies including injunctive relief against any further breach which are reasonably justified in addition to any claim for damages based on a breach of these Covenants of Confidentiality, Non-Circumvention and Non Disclosure.

	
6.5

	
The Parties mutually acknowledge, confirm and agree that the Covenants of Confidentiality, Non-Circumvention and Non-Disclosure will survive Termination of this Agreement and will continue to bind the Independent Contractor to protect the Company’s interest in such Confidential Information disclosed pursuant hereto.

 

  

4

  

 

	
7.

	
Change of Control.

	
7.1

	
N/A;

General Clauses

	
8. 

	
Governing Law, Jurisdiction and Currency

	
8.1

	
This Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada, without giving effect to the principles of conflicts of law thereof.

	
8.2

	
Unless otherwise mutually agreed to in writing by the Parties, any action, proceeding or arbitration in regard to a dispute or direction relating to the subject matter of this Agreement will be solely within the jurisdiction of the appropriate court, tribunal or arbitrator of competent jurisdiction within the State of Nevada.

	
8.3

	
Unless otherwise expressly provided for herein or agreed upon in writing by the Parties, all references to money or money consideration are deemed to be in United States Currency (“US$”)

 

	
9. 

	
Notice

	
9.1

	
All notices to be given with respect to this Agreement, unless otherwise provided for, shall be given to Cleary, the Company and the Consultant at the respective addresses, fax numbers and email addresses shown below or otherwise communicated by the Parties to each other for such notice and service matters during the currency of this Agreement.

  

5

  

	
9.2

	
All notices, requests, demands or other communications made by a Party will be deemed to have been duly delivered: (i) on the date of personal delivery utilizing a process server, courier or other means of physical delivery to the intended recipient (“Personal Service”); or (ii) on the date of facsimile transmission (the “Fax”) on proof of receipt of the Fax; or (iii) on the date of electronic mail (the “email”) with verifiable proof of receipt of such email; or (iv) on the seventh (7th) day after mailing by registered mail with postage prepaid (“Registered Mail”), to the Party’s address, Fax number, email address set out in this Agreement or such other addresses Fax numbers or email address as the Parties or their Representatives may have from time to time during the currency of this Agreement or thereafter and communicated to the other Parties for the purposes of this Agreement.

To:   Kurrant Mobile Catering, Inc.

194 Hermosa Circle

Durango, Colorado

81301

Or

C/o   Diane D. Dalmy, Attorney At Law

8965 W. Cornell Place

Lakewood, Colorado 80227

Tel: (303) 985-9324

Fax: (303) 988-6954

Emaile:ddalmy@earthlink.net

To: Lois Arkwright

60 rue Lapointe St-François, Laval, Qc, Canada, H7B 1A6

514-265-5285

loisarkwright@hotmail.com

	
10. 

	
Entire Agreement

	
10.1

	
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and replaces, restates in full and supersedes all other prior agreements and understandings, both written and oral.

	
10

	
Assignments

	
10.1

	
The Parties agree that neither will assign this Agreement without prior written consent of the other Party.

	
11.

	
Inurement

	
11.1

	
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and authorized assigns. Any attempt by either party to assign any rights, duties or obligations that may arise under this Agreement without the prior written consent of the other party shall be void.

  

6

  

 

	
12. 

	
Entire Agreement and Severance

	
12.1

	
This document contains the entire agreement between the Parties with respect to the subject matter hereof, and neither Party is relying on any agreement, representation, warranty, or other understanding not expressly stated herein. In the event that any provision of this Agreement will be held to be invalid, illegal or unenforceable in any circumstances, the remaining provisions will nevertheless remain in full force and effect and will be construed as if the unenforceable portion or portions were deleted.

	
13.

	
Time if of the Essence

	
13.1

	
Time is of the essence in this Contract.  A waiver of the strict performance requirements hereunder in on instance will not constitute a waiver for any other instance where time for performance is specified herein..

	
14 

	
Counterparts and Execution Electronically

	
14.1

	
Where the Parties hereto or their authorized signatories have signed, sealed and duly executed this Agreement effective the date above shown whether as a whole document in original form or in several counterparts; each such counterpart shall be considered as an original and in combination comprises the formal execution hereof.  The Parties acknowledge and consent to the execution of this Agreement and all related documents and notices pursuant hereto by electronically scanned signatures or facsimile transmission, either of which will constitute good and sufficient execution, service and notice for all intents and purposes hereunder and will be deemed to be as effective as if an originally “signed-in-hand” physical document was used instead.

 

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

 

  

7

  

 

IN WITNESS WHEREOF this Agreement is hereby signed, sealed and duly executed by the Parties or their duly authorized signatories on the Effective Date first above written.

 

 

KURRANT MOBILE CATERING INC.                                                            )

)

)                                (C/S)

_______________________________________________________)

 

Authorized Signatory                                                                                         )

 

Lois Arkwright                                                                                                     )

)

)

_______________________________________________________)

 

Signature of Witness                                                                                          )           

)                 ____________________________________

)

 

Address of Witness                                                                                            )

)

_______________________________________________________)

 

Name and Occupation of Witness                                                                    )

 

  

8

  

SCHEDULE A

 

 

Analysis of the event marketing strategies related to the launch of the different products.

Production of original events for each product.

 

 

 

 

 

  

9

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