Document:

hometouch_ex10-1.htm

Exhibit 10.1

HOME TOUCH HOLDING COMPANY

 

SUBSCRIPTION AGREEMENT

 

HOME TOUCH HOLDING COMPANY, a Nevada corporation (the “Company”), has authorized capital stock consisting of 100,000,000 shares of Common Stock, par value US$0.001 per share (“Common Stock”).  The Company now desires to issue and sell to the undersigned (the “Subscriber”), and the Subscriber desires to purchase from the Company, the number of shares of Common Stock set forth below next to the Subscriber’s name on the signature page hereto (such shares, the “Shares”) in connection with an offering of up to 80,000,000 shares of Common Stock at a purchase price of US$0.01 per share, up to an aggregate of US$800,000 (the “Offering”).

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

	
1.

	
Purchase.

 

	
  

	
(a)

	
Subject to the terms and conditions hereof, the Subscriber agrees to purchase from the Company, and the Company agrees to issue and sell to the Subscriber, the Shares at an aggregate purchase price equal to the aggregate amount set forth next to the Subscriber’s name on the signature page hereto (the “Funds”).  If the Funds are paid in Malaysian Ringgit (RM), the parties agree that the exchange rate to US Dollars shall be RM $3.1 to US $1, representing an aggregate of RM $2,480,000.00 (or US $800,000).

 

	
  

	
(b)

	
The Company has authorized the issuance and sale of the Shares subject to the terms and conditions hereof.

 

	
  

	
(c)

	
Contemporaneously with the Subscriber’s execution and delivery to the Company of an executed counterpart to this Agreement, the Subscriber shall tender the Funds to the Company by wire transfer of immediately available funds to an account or accounts specified in writing by the Company to the Subscriber.

 

	
2.

	
Delivery of Agreement.The Subscriber hereby delivers to the Company, and the Company hereby accepts, an executed counterpart of this Subscription Agreement.

 

	
3.

	
Representations and Warranties of the Subscriber.  The Subscriber hereby represents and warrants to the Company that:

 

	
  

	
(a)

	
Power; Authority; Authorization.  The Subscriber has all organizational power and authority to enter into this Agreement and to carry out its obligations hereunder.  Assuming due execution and delivery by the Company of this Agreement, this Agreement constitutes the legal, valid and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights and remedies generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

  

-1-

  

 

	
  

	
(b)

	
Brokerage Arrangements.  No broker has acted on behalf of the Subscriber in connection with this Agreement, and there are no brokerage commissions, finders’ fees or commissions payable in connection herewith based on any agreement, arrangement or understanding with the Subscriber or any action taken by the Subscriber.

 

	
4.

	
Representations and Warranties for Accredited Investors.The Subscriber hereby represents and warrants as follows:

 

	
  

	
(a)

	
The Subscriber is acquiring the Shares for investment purposes only, for its own account, and not with a view to, or for resale in connection with, any distribution thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”);

 

	
  

	
(b)

	
The Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment;

 

	
  

	
(c)

	
The Subscriber is aware that it may have to bear the economic risk of such investment for an indefinite period of time or to suffer a complete loss of its investment;

 

	
  

	
(d)

	
The Subscriber understands, acknowledges and agrees (i) that the Shares have not been registered under (and that the Company has no present intention to register the Shares under) the Securities Act or applicable state securities law and that the offering and sale of such Shares are being made in reliance on the exemption from the registration requirements provided by Section 4(2) of the Securities Act and the regulations promulgated thereby and analogous provisions of certain state securities laws or in accordance with Regulation S under the Securities Act (“Regulation S”), and (ii) that such Shares may not be sold or otherwise transferred by the Subscriber unless the Shares have been registered under the Securities Act and applicable state securities laws or are sold or transferred in a transaction exempt therefrom;

 

	
  

	
(e)

	
The Subscriber:  (i) if a natural person, represents that he or she has reached the age of 21 and has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and has adequate means for providing for his or her current financial needs and anticipated future needs and possible contingencies and emergencies and has no need for liquidity in the investment in the Shares; (ii) if a corporation, partnership, association, joint stock company, trust, unincorporated organization or other entity, represents that:  such entity was not formed for the specific purpose of acquiring the Shares; such entity is duly organized, validly existing and (if applicable in the applicable jurisdiction) in good standing (or similar status under local law) under the laws of the jurisdiction of its organization; the consummation of the transactions contemplated hereby will not result in a violation of its charter or other organizational documents; such entity has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Shares; the execution and delivery of this Agreement has been duly authorized by all necessary corporate or other action on its part; and this Agreement has been duly executed and delivered on behalf of such entity; (iii) if executing this Agreement in a representative or fiduciary capacity, represents that it has full power and authority to execute and deliver this Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation or other entity for whom the undersigned is executing this Agreement, and such individual, ward, partnership, trust, estate, corporation or other entity has full right and power to perform his, her or its obligations pursuant to this Agreement and make an investment in the Company, and that this Agreement constitutes a legal, valid and binding obligation of such subscribing individual, ward, partnership, trust, estate, corporation or other entity; and (iv) the execution and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Subscriber (or, if applicable, such subscribing individual, ward, partnership, trust, estate, corporation or other entity) is a party or by which he, she or it is bound;

 

  

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(f)

	
The Subscriber understands that no public market now exists for any of the securities issued by the Company and that it is unlikely that a public market will ever exist for the Shares;

 

	
  

	
(g)

	
The Subscriber has received and reviewed this Agreement and all Exhibits hereto; it, its attorney and its accountant have had access to, and an opportunity to review, all documents and other materials requested of the Company; it and they have been given an opportunity to ask any and all questions of, and receive answers from, the Company concerning the terms and conditions of the offering and to obtain all information that it or they believe necessary or appropriate to verify the accuracy of this Agreement, all Exhibits hereto and any other documents and materials requested of the Company and to evaluate the suitability of an investment in the Shares; and, in evaluating the suitability of an investment in the Shares, it and they have not relied upon any representations or other information (whether oral or written); and

 

	
  

	
(h)

	
The Subscriber is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act and has completed properly and delivered an executed copy of the questionnaire attached hereto as Exhibit A.

 

	
5.

	
Representations and Warranties For Non-U.S. Persons Only. The Subscriber hereby represents and warrants the following:

 

	
  

	
(a)

	
The Subscriber is not a U.S. Person, as such term is defined in Regulation S, was not formed under the laws of any United States jurisdiction and was not formed for the purpose of investing in securities not registered under the Securities Act.  The term “U.S. Person” as defined in Regulation S means: (s) any natural person resident in the United States; (t) any partnership or corporation organized or incorporated under the laws of the United States; (u) any estate of which any executor or administrator is a U.S. Person; (v) any trust of which any trustee is a U.S. Person; (w) any agency or branch of a foreign entity located in the United States; (x) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. Person; (y) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (z) any partnership or corporation if: (A) organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by a U.S. Person principally for the purpose of investing in securities not registered under the Securities Act unless it is organized or incorporated, and owned by, accredited investors (as defined in Rule 501(a) under the Securities Act) that are not natural persons, estates or trusts;

 

	
  

	
(b)

	
No offer or sale of the Shares was made to the Subscriber in the United States;

 

	
  

	
(c)

	
The Subscriber is not purchasing the Shares for the account or on behalf of any U.S. Person;

 

  

-3-

  

	
  

	
(d)

	
The Subscriber has not made any pre-arrangement to transfer the Shares to a U.S. Person or to return the Shares to the United States securities markets (which includes short sales and hedging transactions in the United States within the periods restricted under Regulation S (the “Restricted Periods”) to be covered by delivery of Shares) and is not purchasing the Shares as part of any plan or scheme to evade the registration requirements of the Securities Act;

 

	
  

	
(e)

	
The Subscriber acknowledges and understands that all offers and sales of the Shares by the Subscriber in the United States or to U.S. Persons or otherwise, whether prior to the expiration or after the expiration of the Restricted Periods, shall be made only pursuant to a registration of the Shares under the Securities Act or an exemption from registration requirements of the Securities Act.  The Subscriber also acknowledges and understands that the Company will, in order to approve removal of the restrictive legend from certificates evidencing the Shares, require from the Subscriber (i) certain written representations to indicate that the sale of the Shares was made in a transaction that complies with the provisions of Regulation S, pursuant to a registration of the Shares under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act and (ii) require a legal opinion in accordance with Section 8(a) hereof that removal of the legend is appropriate;

 

	
  

	
(f)

	
The Subscriber has not engaged in any “directed selling efforts” (as defined in Regulation S) in the United States regarding the Shares, nor has it engaged in any act intended to or that reasonably might have the effect of preconditioning the U.S. market for the resale of the Shares;

 

	
  

	
(g)

	
The Subscriber is not a “distributor” as defined in Regulation S.  The Subscriber acknowledges, understands and agrees that, if the Subscriber should be deemed to be a distributor prior to reselling the Shares to a non-U.S. Person during the Restricted Periods, the Subscriber will send a notice to each new subscriber of the Shares that such new subscriber is subject to the restrictions of Regulation S during the Restricted Periods;

 

	
  

	
(h)

	
The Subscriber is not an officer, director or “affiliate” (as that term is defined in Rule 405 under the Securities Act) of the Company or an “underwriter” or “dealer” (as such terms are defined in the federal securities laws of the United States), and the purchase of the Shares by the Subscriber is not a transaction (or part of a series of transactions) that is part of any plan or scheme to evade the registration provisions of the Securities Act.  The Subscriber understands and agrees that, if the Subscriber becomes an affiliate of the Company at any time after purchasing the Shares, every sale made by it thereafter must be made in compliance with the provisions of Rule 144 of the Securities Act (“Rule 144”) (except for the two-year holding period requirement), including the filing of Form 144 with the U.S. Securities and Exchange Commission at the time of the sale, as required under Rule 144.  The Subscriber understands and agrees that the provisions of Rule 144, if at any time applicable to it, are separate and apart from, and independent of, any restrictions imposed by Regulation S and will apply even after the expiration of the Restricted Periods;

 

  

-4-

  

	
  

	
(i)

	
The Subscriber does not have a short position in, or other hedged position with respect to, the Shares or the shares of Common Stock of the Company and will not have a short position in, or other hedged position with respect to, such securities at any time prior to the expiration of the Restricted Periods; and

 

	
  

	
(j)

	
If at any time after the expiration of the Restricted Periods the Subscriber wishes to transfer or attempts to transfer the Shares to a U.S. Person, the Subscriber agrees to notify the Company if at such time it is an “affiliate” of the Company or is then acting as an “underwriter,” “dealer” or “distributor” as to such Shares (as such terms are defined in the federal securities laws of the United States or the regulations promulgated thereunder, including, but not limited to, Regulation S), or if such transfer is being made as part of a plan or scheme to evade the registration provisions of the Securities Act.

 

	
6.

	
Representations and Warranties of the Company.  The Company hereby represents and warrants to the Subscriber that:

 

	
  

	
(a)

	
Organization.  The Company is duly organized and validly existing under the laws of the State of Nevada and has the corporate power and authority to own its properties and assets and to carry on its business as now conducted.  The Company is duly qualified or authorized to do business as a foreign corporation in each jurisdiction in which the conduct of its business or the ownership of its properties or assets requires such qualification or authorization, except where the failure to be so qualified would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the Company.

 

	
  

	
(b)

	
Authorization of Agreement; Enforceability.  The Company has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution, delivery and performance by the Company of this Agreement have been duly authorized by all necessary corporate action on the part of the Company.  This Agreement has been duly and validly executed and delivered by the Company and, assuming the due authorization, execution and delivery thereof by the Subscriber, this Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights and remedies generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

	
7.

	
Reliance. The Subscriber acknowledges and agrees that the Company and its agents are relying on the truth and accuracy of the foregoing representations and warranties in the offering of the Shares for sale to the Subscriber without having first registered the Shares under the Securities Act.  All representations, warranties and covenants contained in this Subscription Agreement shall survive the execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereunder.

 

	
8.

	
Restrictions on Transfer of the Shares

 

	
  

	
(a)

	
No Transfer; Opinion of Counsel.  The Subscriber acknowledges that there are restrictions on the transferability of the Shares.  Since the Shares are not registered under the Securities Act or applicable state securities laws, the Subscriber acknowledges and agrees that it shall have no right at any time to sell, assign, pledge, hypothecate, distribute (as a dividend or otherwise), transfer or otherwise dispose of or encumber the Shares (except by will or by the laws of descent and distribution), unless the Company shall first have been provided with an opinion of counsel acceptable to the Company that such sale is exempt from such registration under the Securities Act and any applicable state securities laws.

 

  

-5-

  

	
  

	
(b)

	
Restrictive Legends.  The Subscriber is acquiring the Shares for its own account and not with a view to their distribution within the meaning of Section 2(11) of the Securities Act.  The Subscriber consents to the placement of the following legend on the stock certificate(s) representing the Shares until such time as the Shares are eligible for sale under Rule 144(k) under the Securities Act and prior to the registration for resale thereof:

 

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE ‘SECURITIES ACT’), AND MAY NOT BE OFFERED OR SOLD (I) IN THE UNITED STATES OR TO U.S. PERSONS BY OR ON BEHALF OF ANY U.S. PERSON, UNLESS (A) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT IS IN EFFECT WITH RESPECT THERETO OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION AND A WRITTEN OPINION FROM COUNSEL FOR THE ISSUER OR COUNSEL FOR THE HOLDER REASONABLY ACCEPTABLE TO THE ISSUER HAS BEEN OBTAINED TO THE EFFECT THAT NO SUCH REGISTRATION IS REQUIRED AND (II) OUTSIDE THE UNITED STATES, UNLESS IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT AND THE PURCHASER IN SUCH TRANSACTION PROVIDES A CERTIFICATION TO THE ISSUER THAT IT IS A NON-U.S. PERSON.  EACH BENEFICIAL HOLDER, BY ACCEPTING AN INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE, AGREES THAT ANY HEDGING TRANSACTION INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.  TERMS IN THIS LEGEND HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.”

 

 “TRANSFER OF SECURITIES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED UNDER THE TERMS OF A SUBSCRIPTION AGREEMENT, DATED AS OF NOVEMBER ___, 2010 (THE ‘SUBSCRIPTION AGREEMENT’), TO WHICH THE CORPORATION IS PARTY.  A COPY OF THE SUBSCRIPTION AGREEMENT WILL BE FURNISHED TO ANY STOCKHOLDER UPON WRITTEN REQUEST, AND WITHOUT CHARGE, WITHIN FIVE (5) DAYS AFTER THE CORPORATION’S RECEIPT OF A WRITTEN REQUEST THEREFOR.”

 

	
9.

	
Notice to Subscriber. Correspondence and notices to the Subscriber shall be sent to the address listed below the signature of the Subscriber on the signature page of this Agreement until such time as the Subscriber shall notify the Company, in writing, of a different address to which such correspondence and notices are to be sent.

 

  

-6-

  

 

	
10.

	
Miscellaneous

 

	
  

	
(a)

	
The Subscriber agrees that this Agreement is not transferable or assignable.

 

	
  

	
(b)

	
The Subscriber agrees that, except as expressly permitted by any applicable state law, the Subscriber may not cancel, terminate or revoke this Agreement or any agreement of the Subscriber made hereunder, and this Agreement shall survive the death or legal disability of the Subscriber and shall be binding upon the Subscriber’s heirs, executors, administrators, successors and assigns.

 

	
  

	
(c)

	
This Agreement and the Exhibits hereto constitute the entire agreement among the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties.

 

	
  

	
(d)

	
Headings are for convenience only and are not deemed to be part of this Agreement.

 

	
  

	
(e)

	
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.  A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto, and an executed copy of this Agreement may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission device, pursuant to which the signature of, or on behalf of, such party can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes as of the date first written above.  At the request of any party hereto, all parties hereto agree to execute an original of this Agreement, as well as any facsimile, telecopy or other reproduction hereof.

 

	
  

	
(f)

	
This Agreement and the rights and obligations of the parties hereunder shall be enforced, governed and construed in all respects in accordance with the internal substantive laws of the State of Nevada (without reference to principles of conflicts or choice of law that would cause the application of the internal laws of any other jurisdiction).

 

	
  

	
(g)

	
The Subscriber acknowledges that, if it is a resident of any state whose “blue sky laws” or other local securities laws require a restriction on transferability of securities, it will comply with such restriction requirements.

 

	
  

	
(h)

	
If any part of any provision of this Agreement or any other agreement or document given pursuant to or in connection with this Agreement shall be invalid or unenforceable in any respect, such part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining provisions of this Agreement.

 

  

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11.

	
Confidentiality.Except as may be required by applicable law or as otherwise agreed among the parties hereto, neither the Company nor the Subscriber nor any of their respective Affiliates (as defined below) shall at any time divulge, disclose, disseminate, announce or release any information to any person (i) concerning this Agreement or the transactions contemplated hereby, without first obtaining the prior written consent of the other party hereto or (ii) any trade secrets or other confidential information of the other  party hereto (or its Affiliates), without first obtaining the prior written consent of such other party hereto; provided, however, that each party shall be entitled to disclose information with respect to the Subscriber’s investment in the Company on any reports such Subscriber furnishes to its investors or as otherwise required by any federal, state, local or foreign law (including common law), statute, code, ordinance, rule, regulation or other requirement or guideline.  An “Affiliate” of any specified person shall mean any other person that directly or indirectly controls, or is under common control with, or is controlled by, such specified person.  As used in this definition, “control” (including with its correlative meanings, “controlled by” and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise).

 

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

-8-

  

IN WITNESS WHEREOF, the Subscriber has executed this Subscription Agreement as of November __, 2010.

 

 

 

 

SUBSCRIBER:

 

	 	 	 	US$	 
	
 

	 	 	
 
Total Dollar Amount of Subscription

	 
	
 
Not applicable

	 	 	
 

	 
	
 

	 	 	
US$ 0.01

	 
	 
Tax Identification Number

	 	 	 
Price Per Share

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Total Number of Shares	 

 

 

Mailing Address and Phone Number of Subscriber:

________________________

________________________

________________________

Telephone:  ________________________

 

 

Accepted and agreed to as of November __, 2010:

 

HOME TOUCH HOLDING COMPANY

By:  ____________________________________

Name: David Gunawan Ng

Title:   President and Chief Executive Officer

            (Principal Executive Officer)

 

  

  

  

Exhibit A

 

HOME TOUCH HOLDING COMPANY

 

ACCREDITED INVESTOR QUESTIONNAIRE

In connection with that certain Subscription Agreement, dated as of November __, 2010, by and between ____________ (the “Subscriber”) and Home Touch Holding Company, (the “Company”), a Nevada corporation, pursuant to which the Subscriber has subscribed for, and (subject to acceptance by the Company) has agreed to purchase from the Company, ___________ shares (collectively, the “Shares”) of common stock, with a par value of US$0.001 per share (“Common Stock”), of the Company the undersigned represents and warrants to the Company as follows:

1. Status as “Accredited Investor”

The undersigned understands that the sale of the Shares is limited solely to “Accredited Investors”, as that term is defined under Regulation D of the Securities Act of 1933, as amended (the “Act”). Under Regulation D, individuals and entities meeting the qualifications set forth below are Accredited Investors.  By checking one of the boxes set forth below, the undersigned represents and warrants to the Company that the undersigned is an Accredited Investor by reason of the qualifications described opposite the checked box:

A. Individual Investors.

	
 ̈

	
Any natural person whose net worth, or joint net worth with that person’s spouse, at the time of the purchase exceeds US$1,000,000, excluding the value of the primary residence of such natural person or persons.

	
 ̈

	
Any natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person’s spouse in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

 ̈           Any executive officer or director of the Company.

B. Investor Entities.

 ̈           Any entity in which all of the equity owners are Accredited Investors.

  

  

  

	
 ̈

	
A corporation, partnership, business trust, limited liability company or Section 501(c)(3) organization with total assets in excess of US$5,000,000 that was not formed for the specific purpose of acquiring shares of Common Stock.

	
 ̈

	
Any trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring shares of Common Stock, whose purchase of shares of Common Stock is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of the prospective investment in shares of Common Stock. Note: If this qualification is selected, the representative of the trust must deliver to the Company a written summary of his or her knowledge and experience in financial and business matters on a separate form to be provided by the Company.

	
 ̈

	
Any private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

	
 ̈

	
Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring shares of Common Stock, with total assets in excess of US$5,000,000.

The undersigned is a _________________________________________ meeting the foregoing description.

(Insert Type of Entity)

	
 ̈

	
Any bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended; any insurance company as defined in Section 2(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are Accredited Investors.

  

  

  

The undersigned is a ________________________________________ meeting the foregoing description. 

(Insert Type of Entity)

2. Certification as to Location of Residence or Principal Place of Business. The undersigned represents and warrants to the Company that the undersigned is a resident of the location listed in the address of the undersigned set forth below, or, if the undersigned is an entity, that the principal place of business of the undersigned is such address.

 

 

	[Signature Block For Individuals] 	 	[Signature Block For Entities]
	 	 	 
	 	 	Not applicable
	(Signature) 	 	(Name of Entity)
	 	 	 	 
	 	 	By:	 
	(Printed Name) 	 	 Name:	 
	 	 	 Title:	 
	 	 	 	 
	 	 	 	 
	(Street Address of Residence) 	 	 	(Street Address of Principal Office)
	 	 	 	 
	 	 	 	 
	(City or Town)  (State)  (Zip Code)	 	 	(City or Town)  (State)  (Zip Code)
	 	 	 	 
	 	 	 	 
	(Country) 	 	 	(Country) 
	 	 	 	 
	 	 	 	 
	(Daytime Telephone Number) 	 	 	(Daytime Telephone Number) 

 

 

Date: November __, 2010livecurrent_10q-ex1001.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made as of the 23rd day of July, 2010,

 

B E T W E E N:

 

LIVE CURRENT MEDIA,  INC. a corporation incorporated under the laws of Nevada, and any and all of its subsidiaries

(the “Company”)

OF THE FIRST PART

 

- and -

 

PAUL W. MORRISON of the Town of Nutley, in the State of New Jersey, 

(the “Executive”)

OF THE SECOND PART

 

 

WHEREAS the Company and the Executive wish to enter into this agreement to set forth the rights and obligations of each of them as regards the Executive’s employment with the Company;

 

NOW THEREFORE this agreement witnesseth that in consideration of the premises and the terms and conditions herein contained, the parties hereto covenant and agree with each other as follows:

 

	
1.  

	
Definitions

In this Agreement the following terms shall have the following meanings respectively:

 

“Affiliates” has the meaning attributed to such term in the Business Corporations Act (British Columbia) as the same is now constituted;

 

“Agreement” means this agreement as it may be amended or supplemented from time to time, and the expressions “hereof, “herein”, “hereto”, ‘hereunder”, “hereby” and similar expressions refer to this Agreement and unless otherwise indicated, references to sections are to sections in this Agreement;

 

“Benefits” has the meaning attributed to such term in section 3.6;

 

  

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“Board” means the board of directors of the Company

 

“Business Day” means any day, other than Saturday, Sunday or any statutory holiday in the United States;

 

Change of Control of the Company” means a transaction or a series of transactions whereby directly or indirectly:

 

	

(i)

	
any Person or combination of Persons acting jointly and in concert (other than the Executive or a corporation controlled directly or indirectly by the Executive) acquires beneficially a sufficient number of securities of the Company to materially affect the control of the Company as provided below. Without limiting the generality of the foregoing, for the purposes of this Agreement, a Person or combination of Persons acting jointly and in concert, holding shares or other securities in excess of the number which, directly or following the conversion or exercise thereof, would entitle the holders thereof to cast 35% or more of the votes attached to all shares of the Company which may be cast to elect directors of the Company, shall be deemed to affect materially the control of the Company, in which case the Change of Control of the Company shall be deemed to occur on the date that is the later of the date that the security representing one more than that required to cast 35% of the votes attached to all shares of the Company which may be cast to elect directors of the Company is acquired or the date on which the Persons acting jointly and in concert agree to so act;

	 	 
	(ii)	
the Company shall consolidate or merge with or into, amalgamate with, or enter into a statutory arrangement or business combination with, any other Person (other than a corporation controlled directly or indirectly by the Executive) and in connection therewith, all or part of the outstanding shares of the Company which have voting rights attached thereto shall be changed in any way, reclassified or converted into, exchanged or otherwise acquired for shares or other securities of the Company or any other Person or for cash or any other property and control of the Company is thereby materially affected, as provided above in clause (i), in which case the Change of Control of the Company shall be deemed to occur on the date of closing of the consolidation, merger amalgamation, statutory arrangement or business combination, as the case may be; or

	 	 
	(iii)	
the Company shall sell or otherwise transfer, including by way of the grant of a leasehold interest (or one or more subsidiaries of the Company shall sell or otherwise transfer, including without limitation by way of the grant of a leasehold interest) property or assets aggregating more than 50% of the consolidated assets (measured by either book value or fair market value based on the most recent audited financial statements) of the Company and its subsidiaries as of the end of the most recently completed financial year to any other Person or Persons, in which case the Change of Control of the Company shall be deemed to occur on the date of transfer of the assets representing one dollar more than 50% of the consolidated assets;

 

 

  

-2-

  

 

other than a transaction or series of transactions which involves a sale of assets of the Company with which the Executive is involved as a purchaser in any manner, whether directly or indirectly, and whether by way of participation in a corporation or partnership that is a purchaser or by provision of debt, equity or purchase leaseback financing (but excluding where the Executive’s sole involvement with such a purchase is the ownership of an equity interest of less than 5% of the acquirer where the acquirer is a public company) and the Executive and Persons acting jointly and in concert with the Executive hold securities of the acquirer which, directly, or following the conversion or exercise thereof, would entitle the holders thereof to cast 5% or more of the votes attached to all shares or other interests of the acquirer which may be cast to elect directors or the management of the acquirer.

“Confidential Information” means all confidential or proprietary information, intellectual property (including trade secrets) and confidential facts relating to the business or affairs of the Company or any of its Affiliates;

 

“Disability” has the meaning attributed thereto in any disability insurance policy carried on the life of the Executive by the Company, provided that if the Company is not carrying such a disability policy, “Disability” means the mental or physical state of the Executive such that the Executive has been unable due to illness, disease or other mental or physical disability for which no reasonable accommodation exists to fulfil his obligations as an employee or officer of the Company either for any consecutive 120 day period or for any period of 180 days (whether or not consecutively) in any consecutive 12 month period, or a court of a competent jurisdiction has declared the Executive to be mentally incompetent or incapable of managing his affairs;

 

“Effective Date” has the meaning attributed to such term in section 2.1;

 

“Employment Period” has the meaning attributed to such term in section 2.4;

 

“Incentive Shares” means such Incentive Shares issued in the Company’s subsidiary, Perfume.com Inc., a Delaware Company that will own and operate the perfume.com domain name and business;

 

“Just Cause” means the wilful failure of the Executive to properly carry out his duties after notice by the Company of the failure to do so and an opportunity for the Executive to correct the same within 60 days from the date of receipt of such notice, or theft, fraud, dishonesty or material misconduct by the Executive involving the property, business or affairs of the Company or the carrying out of the Executive’s duties, or the conviction of the Executive for any criminal offence which the Board determines in good faith would adversely affect the Executive’s ability to perform his duties hereunder, including a conviction for an offence which adversely reflects on the integrity or reputation of the Executive or the Company;

 

“Person” includes individuals, partnerships, associates, trusts, unincorporated organizations or a regulatory body or agency, government or governmental agency or authority or entity however designated or constituted;

 

“Salary” has the meaning attributed to such term in section 3.1;

 

  

-3-

  

 “Termination Without Cause” or “Terminated Without Cause” have the meaning attributed to such terms in section 7.3

 

2.          Employment of the Executive

 

2.1.      To Be Chief Executive Officer (“CEO”) and President of Perfume.com Inc., and President and Chief Operating Officer (“COO”) of Live Current Media Inc., collectively known as “The Company”.  The Company shall employ the Executive, and the Executive shall serve the Company, in the position of CEO and President of Perfume.com Inc., and as President and COO of Live Current Media Inc., effective as of and from July 23, 2010 (the “Effective Date”), on the terms and conditions and for the remuneration hereinafter set out.  In such position, the Executive shall perform or fulfill such duties and responsibilities as the Company may designate from time to time and as are reasonably consistent with the position of a CEO, COO and President.  In his capacity as an officer and employee of the Company, the Executive shall report to the Chief Executive Officer of Live Current Media Inc..

 

2.2.                      Performance of Duties.  The Executive hereby agrees to be employed by the Company as herein provided, shall faithfully, honestly and diligently serve the Company and shall, subject to section 2.1 above, carry out such tasks as the Company may from time to time request.  The Executive shall (except in the case of illness or accident) devote the majority  of his working time and attention to his employment hereunder and shall use his best efforts to promote the interests of the Company.

 

2.3.                      Annual Review of this Agreement.  The terms and conditions contained in this Agreement shall be subject to annual review by the Chairman of the Board and the Board, representatives of whom shall consult with the Executive in the course of such review.  The Board and Executive will negotiate in good faith any changes to the terms and conditions of this Agreement as are appropriate to reflect the value of the services of the Executive to the Company and the success of the Company in establishing and achieving business goals for the Company, provided however, that if the Board recommends an amendment that would constitute a material change in the remuneration or responsibilities of the Executive, with which the Executive does not agree and the Board persists in insisting on such amendment, the Executive will be entitled to treat such event as Termination Without Cause and the provisions of section 7.3 shall thereby apply effective as of the date of such amendment.

 

2.4.                      Employment Period.  The Executive’s employment hereunder, subject to section 7 hereof, shall be for a one-year term and any extension thereof as agreed by the Executive and the Company, commencing from the Effective Date (the “Employment Period”).

 

3.                         Remuneration

 

3.1.                      Base Salary.  During the period of the Executive’s employment hereunder, the Company shall pay the Executive a gross base salary (the “Salary”) in the amount of $130,000 in respect of each year thereof, subject to section 3.2 below, payable in equal instalments on the closest Business Day to the middle and the end of each month during such year.

 

  

-4-

  

3.2.                      Cost of Living Increase  The Salary shall be increased in respect of each year during the Employment Period commencing August 1, 2011 (provided the Employment Period is extended in accordance with section 2.4 above) by a percentage equal to the percentage increase (if any) in the consumer price index, all items for New York-Northern New Jersey, USA, as published by the Bureau of Labor Statistics under the authority of the United States Department of Labor, for the immediately preceding year.

 

3.3.                      Bonus Remuneration.  The Executive may, in respect of each year of his employment hereunder commencing August 1, 2011 (provided the Employment Period is extended in accordance with section 2.4 above), be entitled to a cash bonus of up to 50% of his Salary for such year of employment as determined by the Board in its sole discretion in accordance with the Company’s ongoing programmes and objectives, which shall be paid within 30 days following the date as of when the audited financial statements for such year have been approved by the Board.

 

3.4.                      Signing and Special Bonus.  No Signing or Special Bonuses will be paid.

 

3.5.                      Stock Options.  The Executive will be granted an option, under the 2007 Stock Option Plan, to purchase during the Employment Period up to 1,000,000 common shares of the Company at the then market price on the Effective Date which will be exercisable with respect to 333,334 shares on the first anniversary of the Effective Date. Thereafter, and subject to the renewal of this contract at the end of the term, with respect in each case to 83,333 shares on the last day of each successive three-month period. If the Executive is Terminated without Cause, or is deemed to be Terminated without Cause as provided herein, or dies, or this contract is not renewed for at least one subsequent one year term, all unexercised options that would have vested in the twelve month period immediately following the Termination without Cause or non-renewal, will thereupon become exercisable. The options will have a term of five (5) years.

 

In addition, the Board in its sole discretion will consider each year during the Employment Period the grant of additional options to the Executive to purchase common shares of the Company.

 

3.6.                      Incentive Shares in Perfume.com Inc.   The Executive will be granted such number of Incentive Shares in Perfume.com Inc., such that on a fully diluted basis, that number is equal to 5% of the outstanding shares. Such shares to be issued under the terms and conditions of the Incentive Share Plan for Perfume.com Inc.

 

3.7.                      Benefits.  The Company shall provide to the Executive, in addition to the Salary and any bonus remuneration, all such benefits (the “Benefits”) comparable to the benefits it provides from time to time to the management and other employees of the Company in accordance with and subject to the terms and conditions of the applicable fund, plan or arrangement relating thereto.  The Company will pay the costs of continuing the Executive’s health insurance coverage at group rates under COBRA until the Company can provide the Executive with health insurance coverage.

 

3.8.                      Statutory Deductions.  The Company shall deduct from the Salary, any bonus remuneration and any other payments and allowances provided for herein, all such amounts as are required by law to be withheld and deducted at source and shall remit the same to the required governmental authority or agency.

  

-5-

  

4.                         Expenses

 

The Company shall pay or reimburse the Executive for all travel (including business class flights where applicable in accordance with the Company’s policy from time to time) and out-of-pocket expenses reasonably incurred or paid by the Executive in the performance of his duties and responsibilities upon presentation of expense statements or receipts or such other supporting documentation as the Company may reasonably require.

 

5.                         Vacation

 

The Executive shall be entitled during each year of his employment hereunder to vacation with pay of three weeks.  Such vacation shall be taken by the Executive at such time as may be acceptable to the Company having regard to its operations.  Notwithstanding the foregoing, in the event that the Executive’s employment is terminated pursuant to section 8, the Executive shall not be entitled to receive any payment in lieu of any vacation to which he was entitled and which had not already been taken by him except to the extent, if any, of the payments in respect of vacation pay required under applicable law.

 

6.                         Indemnification

 

The Parties agree that in the event Executive is made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (other than an action by the Company against Employee), by reason of the fact that Executive by reason of the fact that the Executive is or was serving at the request of the Company as a Director, Officer, employee, or agent is or was serving at the request of the Company of another corporation, partnership, joint venture, trust or other enterprise, the Company shall indemnify Employee against expenses (including (including attorneys’ fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by Employee in connection with such action, suit or proceeding if Executive acted in good faith and in a manner Executive reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal action or proceeding had no reasonable belief that his conduct was unlawful.  The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Executive did not act in good faith and in a manner Employee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal proceeding, had reasonable cause to believe Executive’s conduct was unlawful.

 

7.                         Disability Insurance

 

The Company will obtain and maintain disability insurance with respect to the Executive on such terms and in such amount as are normal and reasonable in relation to the Company and the industry in which it operates.

 

  

-6-

  

8.                         Termination

 

8.1.                      Termination for Just Cause.  The Company may terminate the employment of the Executive hereunder at any time for Just Cause without notice and without further obligations to the Executive, including without payment of any kind of compensation either by way of anticipated earnings or damages of any kind.

 

8.2.                      Termination by Death.  The Executive’s employment hereunder shall be terminated upon the death of the Executive, in which case the Company shall pay to the estate of the Executive all Salary, bonus and vacation pay earned to the date of death but unpaid, and such Salary and bonus,  and shall reimburse his expenses, as would have been paid or reimbursed to the Executive in the event of Termination without Cause.

 

8.3.                      Termination without Just Cause and without Notice.  The Company may terminate the employment of the Executive hereunder, in its sole discretion, without notice and without Just Cause (“Termination Without Cause” or “Terminated Without Cause”), effective immediately upon the date as of when the Executive is advised of such termination, and in such case the Company shall:

 

(a)           pay the Executive a severance allowance equivalent to the aggregate of :

 

	
  

	
(i)

	
the lesser of twelve months of the Executive’s then current Salary, or the salary payable until the end of the term of this Agreement; and

 

	
  

	
(ii)

	
an amount equivalent to the Executive’s annualized entitlement to bonus remuneration, if any such bonus has been declared by the Board pursuant to section 3.3 above,

 

in a lump sum within two weeks following the date of such termination;

 

	
  

	
(b)

	
pay to the Executive all outstanding vacation pay and any earned but unpaid Salary up to the date of such termination within two weeks of the date of such termination;

 

	
  

	
(c)

	
reimburse the Executive for any business expenses incurred by him up to and including the date of such termination following provision by the Executive of applicable receipts;  and

 

	
  

	
(d)

	
ensure that it has complied with all statutory obligations imposed by applicable law.

 

Unless otherwise agreed with the Company, all payments on account of Benefits shall cease and the Company shall be under no further obligation with respect thereto upon the termination of the Executive’s employment hereunder.

 

8.4.                      Termination following a Change of Control.  In the event of a Change of Control of the Company, the Executive may elect to resign his employment by giving written notice to the Company within 60 days following the date of occurrence of such Change of Control of the Company, in which event the Executive’s employment hereunder shall be deemed to have been Terminated Without Cause by the Company and the provisions of section 8.3 shall thereby apply effective as of the date of such notice.

 

  

-7-

  

8.5.                      Termination Without Cause upon Disability.  If the employment of the Executive is terminated by the Company because of a Disability, the Executive shall be deemed to have been Terminated Without Cause and the provisions of section 8.3 hereof shall thereby apply effective as of the date of such termination, provided that the amount payable to the Executive under subsection 8.3(a) hereof shall be reduced by an amount equal to the aggregate amount of any disability benefits payable to the Executive under any disability insurance carried by the Company in respect of the year immediately following the date of such termination.

 

8.6.                      Cessation of Duties and Obligations of the Company.  Unless otherwise agreed, the Executive shall upon receiving any notice of termination of his employment hereunder, whether or not purported to constitute prior notice, forthwith cease to perform his duties and responsibilities and cease to attend the Company’s premises.  The Company’s obligations pursuant to this section 8 with respect to the termination of the Executive’s employment hereunder shall commence as of the date of receipt of such notice of termination except where otherwise provided herein.

 

8.7.                      Resignation or Retirement of the Executive.  The Executive shall provide the Company with three months prior written notice of his resignation or retirement from the Company, except in the case of Change of Control of the Company in respect of which section 8.4 hereof is applicable.

 

8.8.                      Material Change in Duties and Responsibilities.  If there has been a material change in the Executive’s duties and responsibilities such as he is required to assume duties that are not consistent with, or to relinquish duties that are consistent with, those set out in section 2.1 or a material reduction in his annual remuneration, and such change is unacceptable to the Executive, the Company shall be considered for all purposes of this Agreement to have delivered a notice of Termination Without Cause on the date of such change terminating the Executive’s employment and section 8.3 hereof shall thereby apply effective as of such date.

 

8.9.                      Deductions and Withholdings.  All payments made to the Executive pursuant to this section 8 shall be subject to applicable deductions and withholdings.

 

8.10.                    Complete Satisfaction.  Compliance by the Company with its obligations pursuant to this section 8 hereof shall constitute full and final satisfaction of any entitlement which the Executive may have with respect to the termination of his employment hereunder, including without limitation, any entitlement to notice, pay in lieu of notice or severance, whether arising under contract, statute or otherwise, and the Executive shall have no action, cause of action, claim or demand, either under statutory or common law, against the Company or any other Person as a consequence of such termination.

 

8.11.                    Return of Property.  In the event of the termination of the Executive’s employment hereunder for any reason, including resignation or retirement, the Executive will immediately return to the Company all property of the Company in his possession or under his control.

 

  

-8-

  

 

9.                         Inventions, Etc.

 

The Executive agrees that any and all operational and scientific information, including but not limited to, marketing, business plans, formulae, processes, designs, computer software and programmes and inventions which the Executive may conceive or make or have conceived or made in the course or arising out of his employment with the Company (collectively, the “Works”) shall be and are the sole and exclusive property of the Company and shall be disclosed by the Executive to the Company.  The Executive shall, whenever requested to do so by the Company, and without any obligation on the part of the Company to pay any royalty or other compensation to the Executive, at the Company’s expense execute and sign any and all applications, assignments or other instruments and do all other things which the Company may deem necessary or appropriate:

 

	
  

	
(i)

	
in order to apply for, obtain, maintain, enforce or defend letters patent in Canada or in any foreign country for any Works; or

 

	
  

	
(ii)

	
in order to assign, transfer, convey or otherwise made available to the Company the sole and exclusive rights, title and interest in and to any Works.

 

The Executive also agrees to waive in whole any moral rights which it may have in any Works or any part or parts thereof.

 

10.                        Non-Competition

 

The Executive shall not during the Employment Period and the 12 months immediately thereafter (except in the event of a Change of Control of the Company), directly or indirectly, in any manner whatsoever including, without limitation, either individually, or in partnership, jointly or in conjunction with any other Person, or as an employee, principal, agent, director or shareholder:

 

(i)           be engaged in any undertaking;

 

	
  

	
(ii)

	
have any financial or other interest (including an interest by way of royalty or other compensation arrangements) in or in respect of the business of any Person; or

 

	
  

	
(iii)

	
advise, lend money to, guarantee the debts or obligations of any Person which carries on a business;

 

anywhere in the United States which is the same as or substantially similar to or competes with or would compete with the specific business carried on by Perfume.com, Inc., namely the sale of perfume over the internet, during the Employment Period.

 

Notwithstanding the foregoing, nothing herein shall prevent the Executive from being engaged in an e-commerce or e-media company or venture that does not derive more than 25% of its revenue from the sale of perfume over the internet, nor from owning up to 5% of the issued shares of a corporation or business that derives substantially all of its revenue from selling perfume over the internet, the shares of which are listed on a recognized stock exchange or publicly traded on an over-the-counter market.

 

  

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11.                        No Solicitation of Customers

 

The Executive shall not, during the Employment Period and for the 12 months immediately thereafter (except in the event of a Change of Control of the Company), directly or indirectly, contact or solicit any designated customers or suppliers of the Company or any of its Affiliates for the purpose of selling to the designated customers any services or products which are the same as or substantially similar to, or in any way competitive with, the services or products sold by the Company or any of its Affiliates during the Employment Period. For the purpose of this section, a designated customer means a Person who was a customer of the Company or of any of its Affiliates during some part of the Employment Period.

 

12.                        No Solicitation of Employees

 

The Executive shall not, during the Employment Period and for the 12 months immediately thereafter (except in the event of a Change of Control of the Company), directly or indirectly, employ or retain as an independent contractor any employee of the Company or any of its Affiliates or induce or solicit, or attempt to induce, any such Person to leave his or her employment.

 

	
13.

	
Confidentiality

The Executive shall not, either during the Employment Period hereunder or at any time thereafter, directly or indirectly, use or disclose to any Person any Confidential Information provided, however, that nothing in this section shall preclude the Executive from disclosing or using Confidential Information, if:

13.1.      the Confidential Information is available to the public or in the public domain at the time of such disclosure or use, without breach of this Agreement;

 

13.2.      disclosure of the Confidential Information is required to be made by any law, regulation, governmental authority or court; or

 

13.3.      the Confidential Information was received by the Executive after termination of the Employment Period from a third party who had a lawful right to disclose it to the Executive.

 

14.                        Remedies

 

The Executive acknowledges that a breach or threatened breach by the Executive of the provisions of sections 9 to 13, inclusive, may result in the Company and its shareholders suffering irreparable harm which is not capable of being calculated and which cannot be fully or adequately compensated by the recovery of damages alone. Accordingly, the Executive agrees that the Company shall be entitled to interim and permanent injunctive relief, specific performance and other equitable remedies, in addition to any other relief to which the Company may become entitled.

 

  

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15.                        Co-operation by Executive

 

The Executive shall co-operate in all respects with the Company if the question arises as to whether a Disability has occurred. Without limiting the generality of the foregoing, the Executive shall authorize the Executive’s medical doctor or other health care specialist to discuss the condition of the Executive with the Company and shall submit to examination by a medical doctor or other health care specialist selected by the Company, acting reasonably.

 

16.                        Representation of Executive

 

The Executive represents and warrants to the Company that he is not a party to, or bound by, any agreement or understanding with any other Person that precludes or restricts his ability and entitlement in any way to carry out his duties of employment with the Company as contemplated herein, free and clear of any claims or liabilities of whatsoever nature.

 

17.                        Disputes

 

(a)           Any dispute between the parties hereto in respect of the interpretation of this Agreement shall be subject to formal mediation before any judicial proceedings are commenced.

 

(b)           If any such a dispute is not resolved by such formal mediation within six months  following a written demand for mediation by any party and participation in such mediation by all the parties, then either party may commence an action in any court of competent jurisdiction.

 

(c)           All costs of the mediation, other than the costs of any counsel engaged by the Executive, will be paid for by the Company, provided, however, if the matter is settled through the mediation then the Company will pay any reasonable fees of counsel engaged by the Executive.

 

18.                        Notices

 

Any notice or other communication required or permitted to be given hereunder shall be in writing sent by any means providing proof of receipt, such as by Registered Mail Return Receipt Requested, Commercial Overnight Courier, Hand Delivery with Receipt Endorsed on a copy by the recipient, by facsimile, Commercial Hand Delivery Service with Affidavit of Notices and other communications shall be addressed as follows:

 

  

-11-

  

	
  

	
(a)

	
if to the Company:

 

Live Current Media Inc.

Suite 307

780 Beatty Street

Vancouver, British Columbia

V6B 2M1

 

(b)          if to the Executive:

 

Paul W Morrison

34 Milton Ave

Nutley, NJ, USA 07110

 

19.                        Headings

 

The inclusion of headings in this Agreement is for convenience of reference only and shall not affect the construction or interpretation hereof.

 

19.                        Invalidity of Provisions

 

Each of the provisions contained in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision thereof.

 

21.                        Entire Agreement

 

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement. This Agreement supersedes and replaces all prior agreements if any, written or oral, with respect to the Executive’s employment by the Company and any rights which the Executive may have by reason of any such prior agreement. There are no warranties, representations or agreements between the parties in connection with the subject matter of this Agreement except as specifically set forth or referred to in this Agreement. No reliance is placed on any representation, opinion, advice or assertion of fact made by the Company or its directors, officers and agents to the Executive, except to the extent that the same has been reduced to writing and included as a term of this Agreement. Accordingly, there shall be no liability, either in tort or in contract, assessed in relation to any such representation, opinion, advice or assertion of fact, except to the extent aforesaid.

 

22.                        Waiver, Amendment

 

Except as expressly provided in this Agreement, no amendment or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any provision of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided.

 

  

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23.                        Currency

 

All amounts in this Agreement are stated and shall be paid in US currency.

 

24.                        Governing Law

 

This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.

 

25.                        Counterparts

 

This Agreement may be signed in counterparts and each of such counterparts shall constitute an original document and such counterparts, taken together, shall constitute one and the same instrument.

 

26.                        Acknowledgment

 

The Executive acknowledges that:

 

	
  

	
 26.1.

	
the Executive has had sufficient time to review and consider this Agreement thoroughly;

 

	
  

	
 26.2.

	
the Executive has read and understands the terms of this Agreement and the Executive’s obligations hereunder; and

 

	
  

	
 26.3.

	
the Executive has been given an opportunity to obtain independent legal advice, or such other advice as the Executive may desire, concerning the interpretation and effect of this Agreement.

 

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

 

 

	 	LIVE CURRENT MEDIA, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ C. Geoffrey Hampson	 
	Witness	 	 	 
	)	 	 	 
	)	 	 	 
	)	 	/s/ Paul Morrison	 
	 	 	Paul W Morrison	 

 

 

 

 -13-

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