Document:

Unassociated Document

    
      

      THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR
SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR
AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

      

      CONVERSION
AGREEMENT

      

      THIS
CONVERSION AGREEMENT, dated as of August 17, 2010 is made by and between
Wellstar International, Inc., a Nevada corporation (“Company”), and Ken
McCoppen, a Vice President and Director of the Company
(“Employee”).

      

      WHEREAS,
the Company owes Employee wages in arrears for a total of $407,000 (the
“Wages”); and

      

      WHEREAS,
the Company and the Employee wish to convert One Hundred Fifty Thousand Dollars
($150,000) of the Wages (the “Conversion Wages”) into Series C Preferred Stock,
par value $0.001 per share (“Preferred Stock”),
of the Company;

      

      NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which the parties hereby acknowledge the parties agree as follows:

      

      1.            Conversion Wages. The
Company and Employee hereby agree that Conversion Wages shall convert into
150,000 shares of Preferred Stock (“Conversion Shares”) to
Employee.

      

      2.            Closing. At the
Closing, the Company shall deliver the Conversion Shares to
Employee.

      

      3.            Further Assurances.
In connection with the Conversion Wages, the Employee, by entering into this
Conversion Agreement, agrees to execute all agreements and other documents as
reasonably requested by the Company.

      

      4.            Investor Representations and
Warranties and Covenants. The Employee represents, warrants and covenants
to the Company as follows:

      

      a.  No Registration. Such
Employee understands that the Conversion Shares have not been, and will not be,
registered under the Securities Act of 1933, as amended (the “Securities Act”) by
reason of a specific exemption from the registration provisions of the
Securities Act, the availability of which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of such Employee’s
representations as expressed herein or otherwise made pursuant
hereto.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      b.  Investment Intent.
Such Employee is acquiring the Conversion Shares for investment for his own
account, not as a nominee or agent, and not with the view to, or for resale in
connection with, any distribution thereof, and such Employee has no present
intention of selling, granting any participation in, or otherwise distributing
the same. Such Employee further represents that it will not violate the
Securities Act and does not have any contract, undertaking, agreement or
arrangement with any person or entity to sell, transfer or grant participation
to such person or entity or to any third person or entity with respect to the
Conversion Shares.

      

      c.  Investment
Experience. Such Employee has substantial experience in evaluating and
investing in private placement transactions of securities in companies similar
to the Company and acknowledges that such Employee can protect its own
interests. Such Employee has such knowledge and experience in financial and
business matters so that such Employee is capable of evaluating the merits and
risks of its investment in the Company.

      

      d.  Speculative Nature of
Investment. Such Employee understands and acknowledges that the Company
has a limited financial and operating history and that an investment in the
Company is highly speculative and involves substantial risks. Such Employee can
bear the economic risk of such Employee’s investment and is able, without
impairing such Employee’s financial condition, to hold the Conversion Shares for
an indefinite period of time and to suffer a complete loss of such Employee’s
investment.

      

      e.  Accredited Investor.
The Employee is an “accredited investor’ within the meaning of Regulation D,
Rule 50 1(a), promulgated by the Securities and Exchange Commission under the
Securities Act and shall submit to the Company such further assurances of such
status as may be reasonably requested by the Company.

      

      f.  Rule 144. Such
Employee acknowledges that the Conversion Shares must be held indefinitely
unless subsequently registered under the Securities Act or an exemption from
such registration is available. Such Employee is aware of the provisions of Rule
144 promulgated under the Securities Act which permit limited resale of shares
subject to the satisfaction of certain conditions, including among other things,
the existence of a public market for the shares, the availability of certain
current public information about the Company, the resale occurring not less than
one year after a party has purchased and paid for the security to be sold, the
sale being effected through a “broker’s transaction” or in transactions directly
with a “market maker” and the number of shares being sold during any three-month
period not exceeding specified limitations. Such Employee acknowledges that, in
the event all of the requirements of Rule 144 are not met, registration under
the Securities Act or an exemption from registration will be required for any
disposition of the Conversion Shares such Employee understands that, although
Rule 144 is not exclusive, the Securities and Exchange Commission has expressed
its opinion that persons proposing to sell restricted securities received in a
private offering other than in a registered offering or pursuant to Rule 144
will have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales and that such persons and the
brokers who participate in the transactions do so at their own
risk.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      g.  Authorization.

      

      i.
Employee has all requisite power and authority to execute and deliver this
Conversion Agreement, and to carry out and perform its obligations under the
terms hereof. All action on the part of the Employee necessary for the
authorization, execution, delivery and performance of this Conversion Agreement,
and the performance of all of the Employee’s obligations herein, has been
taken.

      

      ii. This Conversion Agreement, when
executed and delivered by the Employee, will constitute valid and legally
binding obligations of the Employee, enforceable in accordance with its terms
except: (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable
remedies or by general principles of equity.

      

      iii.  No
consent, approval, authorization, order, filing, registration or qualification
of or with any court, governmental authority or third person is required to be
obtained by the Employee in connection with the execution and delivery of this
Conversion Agreement by the Employee or the performance of the Employee’s
obligations hereunder.

      

      j.  Brokers or Finders.
Such Employee has not engaged any brokers, finders or agents, and the Company
has not, and will not, incur, directly or indirectly, as a result of any action
taken by the Employee, any liability for brokerage or finders’ fees or agents’
commissions or any similar charges in connection with this Conversion Agreement
and the transactions related hereto.

      

      k.  Tax Advisors. Such
Employee has reviewed with its own tax advisors the U.S. federal, state, local
and foreign tax consequences of this investment and the transactions
contemplated by this Conversion Agreement. With respect to such matters, such
Employee relies solely on such advisors and not on any statements or
representations of the Company or any of its agents, written or oral. The
Employee understands that it (and not the Company) shall be responsible for its
own tax liability that may arise as a result of this investment or the
transactions contemplated by this Conversion Agreement.

      

      l.  Legends. Such
Employee understands and agrees that the certificates evidencing the Conversion
Shares and Interest Shares shall bear a legend in substantially the form as
follows (in addition to any legend required by any other applicable agreement or
under applicable state securities laws):

      

      “THE
SHARES REPRESENTED BY THIS CERTIFICATE

      HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES

      ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS

      OF ANY
STATE, AND MAY NOT BE SOLD, TRANSFERRED,

      ASSIGNED,
PLEDGED OR HYPOTHECATED UNLESS AND

      UNTIL
REGISTERED UNDER SUCH ACT AND/OR

      APPLICABLE
STATE SECURITIES LAWS, OR UNLESS THE

      COMPANY
HAS RECEIVED AN OPINION OF COUNSEL OR

      OTHER
EVIDENCE, REASONABLY SATISFACTORY TO

      THE
COMPANY AND ITS COUNSEL, THAT SUCH

      REGISTRATION
IS NOT REQUIRED.”

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF, the
parties have caused this Agreement to be duly executed by their respective
officers thereonto duly authorized as of the day and year first above
written.

       

      
        
          	 	 	 
	 	WELLSTAR
      INTERNATIONAL, INC.	 
	 	 	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ John Antonio	 
	 	 	John
      Antonio	 
	 	 	Chief
      Executive Officer	 
	 	 	 
	 	 	 
	 	EMPLOYEE:	 
	 	 	 
	 	 	 
	 	/s/
      Ken McCoppen	 
	 	Ken
      McCoppen	 
	 	Address:a6399080_ex10-1.htm

Exhibit 10.1

 

2010 AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS 2010 AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into to be effective as of the 28th day of June, 2010 (“Effective Date”), by and between ANTs software inc., a Delaware corporation (the “Company”), and Joseph Kozak (“Executive”).

 

WHEREAS, Company desires to retain Executive to serve as Chief Executive Officer upon the terms and conditions hereinafter set forth; and

 

WHEREAS, Executive is willing to continue to serve as Chief Executive Officer of Company; and

 

WHEREAS, Executive’s current Employment Agreement effective as of April 15, 2007 (the “Prior Agreement”) is for an indefinite term, continuing until such time as the Agreement is terminated by either Company or Executive pursuant to the terms of the Prior Agreement; and

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.             Employment, Compensation and Benefits.  During the Term of this Agreement, Company agrees to employ Executive and to pay the compensation and to provide the benefits described below:

 

(a)           Title and Duties.

 

	
  

	
 

	

(i)   Title. During the Term (as defined in Section 2 herein), Executive shall be employed as Chief Executive Officer, and President of Company, Subject to election by the Company’s shareholders,  Executive shall also be a member of the Board of Directors of Company (the “Board”) and Executive Committee, if any, of Company.

 

(ii)           Duties.  The Executive shall faithfully perform for the Company the duties incident to the offices of, Chief Executive Officer, and President and shall report directly to the board

 

(iii)          Executive shall be permitted to perform duties located at the office of the Company in Atlanta, Georgia.

 

(b)           Compensation.

 

	
  

	
 

	

(i)   Base Salary.  Executive’s base salary shall be at the rate of $500,000.00 per annum, payable in accordance with the Company’s normal payroll practices.

 

(ii)           Bonus.  Executive’s target bonus for 2010 shall be 50% of Executive’s Base Salary (i.e., $250,000) dependent only upon the Company achieving annual targets as mutually agreed to between Executive and the Compensation Committee.

 

 

  

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(iii)           Equity Awards.  The Company shall make the following awards as of the Effective Date of this Agreement (the “Grant Date”):

(1)           A grant of performance restricted stock units for Three Million Five Hundred Thousand (3,500,000) shares of the Company’s common stock (the “Stock”) (the “2010 Equity Stock Grant”) shall be made upon the signing of this Agreement with vesting of such Stock to occur in three (3) equal installments beginning on the first anniversary of the Vesting Measurement Date and each anniversary date thereafter until the third anniversary, at which time the Stock granted hereby shall become fully vested.  In addition, the Equity Stock Grant shall automatically vest upon the happening of the following events (i) Change of Control of the Company as defined herein; (ii) termination of the Executive’s employment other than for Cause as defined herein, and (iii) termination of the Executive’s employment for Good Reason as defined herein.  The unvested Equity Stock Grant shall automatically terminate upon the happening of the following:  (i) termination of the Executive’s employment for Cause as defined herein; and (ii) the Executive’s voluntary termination of his employment.

(c)           Stock Options.  The Executive shall be granted options (“Options”) to purchase an aggregate of three million five hundred thousand (3,500,000) shares of common stock at an exercise price equal to the closing market price of the stock as of the Grant Date and shall be exercisable for a period of ten (10) years from the Grant Date.  The Grant Date shall be the Effective Date of this Agreement.  The Options shall vest in three (3) equal installments beginning on the first anniversary of the Vesting Measurement Date and each anniversary date thereafter until the third anniversary, at which time the Stock purchased shall become fully vested.  In addition, the Options shall automatically vest upon the happening of the following events (i) Change of Control of the Company as defined herein; (ii) termination of the Executive’s employment other than for Cause as defined herein; and (iii) termination of the Executive’s employment for Good Reason as defined herein.  The unvested Options shall automatically terminate upon the happening of the following:  (i) termination of the Executive’s employment for Cause as defined herein.

(d)           Benefits.

(i)           ANTs Software Inc. Benefit Plans Generally.  Company shall provide benefits as outlined in the ANTs corporate benefits plan.

 

 (f)           Indemnification.   Company shall provide Executive with directors and officers errors and omissions insurance in amounts reasonably acceptable to Executive.  Company agrees to indemnify, defend and hold harmless Executive, to the fullest extent permitted by law and by the Company’s Articles of Incorporation and Bylaws (or the applicable equivalent governing documents) with respect to any and all claims which arise from or relate to Executive’s duties as an officer, member of the Board, as well as any other position held by Executive, or as a fiduciary of any employee Benefit Plan or similar capacity.

 

 

  

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(g)           Equity Participation.  All stock Options previously granted to Executive by the Prior Agreement shall continue in force in accordance with their terms.

 

(h)           Vacation.  Executive shall be entitled to vacation time and holidays as are provided in general to executive employees of Company but shall in any event be entitled to no less than four (4) weeks of vacation per year.  Any unused vacation shall roll over to the subsequent year.

 

2.             Term and Termination.

 

(a)           Term.   Executive’s employment under this Agreement shall commence on the Effective Date and shall continue through and until the 30th day of June, 2013 (the “Initial Term”).  Company and Executive agree to review an extension/non extension of the Agreement and to provide a written notice of the decision no later than six (6) months prior to the expiration of the then applicable period.

 

(b)           Termination by the Company.  The Company has the right to terminate Executive’s employment under this Agreement by written notice to Executive at any time (i) for “Cause”; (ii) without Cause for any or no reason; (iii) due to the disability of Executive; and (iv) death of Executive.  Any such termination shall be effective thirty (30) days following the date of Executive’s receipt of written notice but subject to any curative rights of Executive.

 

3.             Effect of Certain Terminations.

 

(a)   Termination by Company For Cause.  The Company shall have the right to terminate Executive’s employment at any time for Cause, as “Cause” is hereinafter defined.  Executive shall continue to receive Base Salary for the period ending thirty (30) days after the date of such termination plus any accrued Bonus through such thirty day period.  Any rights and benefits the Executive may have in respect of any other compensation or benefit shall be determined in accordance with the terms of this Agreement or such other compensation arrangements or such other plans or programs as applicable to Executive.

 

“Cause” shall mean (a) Executive’s conviction of or pleading nolo contendere to a criminal charge involving moral turpitude; (b) Executive’s willful and continuous misconduct with regard to his material duties and responsibilities which causes demonstrable harm of a material nature to the Company; (c) Executive’s serious and persistent breach of Executive’s material obligations under this Agreement (including any repeated failure to abide by the legal, written directives presented to him by the Board; or (d) Executive’s gross negligence (other than as a result of physical or mental impairment) with regard to his duties; provided that in the case of (b), (c) and (d) above, such misconduct, breach or negligence was not resolved or cured by Executive within fifteen (15) days following Executive’s receipt of Company’s written notice to Executive of Company’s intention to terminate Executive’s employment for Cause as the result of such circumstances.  Such notice shall describe such circumstances with sufficient particularity to give Executive a reasonable opportunity to resolve or cure any such misconduct, breach or negligence.  For purposes of this Agreement, an act (or omission) shall not be deemed “willful” if, in the good-faith belief of Executive, such act (or omission) was in the best interest of Company and such belief was reasonable.

 

 

  

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 (b)           Termination by Company Other Than For Cause or by Executive for Good Reason.  The foregoing notwithstanding, the Company may terminate the Executive’s employment for whatever reason it deems appropriate, provided, however, that in the event such termination is not based upon demonstrable Cause as provided for hereinabove, the Company may terminate this Agreement without Cause upon giving three (3) months prior written notice.  During such three (3) month period, Executive shall continue to perform the Executive’s Duties pursuant to this Agreement and the Company shall continue to compensate the Executive in accordance with this Agreement.  Subsequent to such three (3) month period, Executive shall be paid all compensation and benefits as set forth in Section 3(b)(i) and (ii) of this Agreement.

 

(i)           If Executive’s employment under the Agreement is terminated by the Company without Cause or the Executive terminates his employment for Good Reason in each case prior to any Change of Control (as defined in Section 3(e)(iv) below) and not in Anticipation of a Change in Control, as defined in Section 3(e)(iii) below, during the Term, the Executive shall be entitled to receive as severance pay (in addition to the payment of Base Salary through the date of termination) an amount equal to three (3) years of his current Base Salary, payable over the three year period immediately following his termination in equal monthly installments in accordance with the Company’s ordinary payroll pay practices.  In addition, the vesting of all unvested Equity Grants and all other Equity Awards (“Stock”) held by Executive shall accelerate and vest in full as of the date of termination.  Executive shall have no obligation to mitigate these post-employment payments by seeking other employment.

 

(ii)           If the Executive’s employment is terminated by the Company without Cause or death, or the Executive terminates his employment for Good Reason, Executive shall be entitled to receive (a) all compensation accrued and unpaid prior to the date of termination; (b) an amount equal to three (3) times his annual Base Salary payable; (c) an amount equal to two (2) times the average of the Executive’s Bonus calculated based on the year 2010 and each successive calendar year prior to the date of termination payable in a lump sum amount within thirty (30) days of Executive’s termination plus; (d) the vesting of all Stock Options, Equity Grants and Equity Awards owned by Executive as of the date of termination.

 

 

  

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(e)           Definitions:

 

(i)            “Accrued Amounts” shall mean (x) all accrued but unpaid Base Salary and vacation pay to be paid within thirty (30) days after termination; (y) any bonus due as a result of actual performance but unpaid for any completed Fiscal Year, to be paid in the calendar year of such termination when bonus payments are customarily made to senior level executives; and (z) in respect of the Fiscal Year in which the termination occurs, payment of an amount (the “Prorated Bonus”) equal to a prorated portion of the actual annual bonus earned based on performance during the Fiscal Year in which the termination occurs based on actual results, which bonus shall be paid to Executive on or before ninety (90) days following the date of termination; provided, however, that upon a termination of Executive’s employment for Cause, or Resignation by Executive without Good Reason (other than as a result of death, Disability, Mutual Retirement or upon or following the expiration of the Term).  Accrued Amounts shall not include a Prorated Bonus.

 

(ii)            “Accrued Rights” shall mean any amounts or benefits due to Executive under any benefit or equity plan or program (other than a Severance Plan) and Executive’s rights under the provisions of this Agreement and payable in accordance with the terms of such plan or program.

 

	
  

	
 

	

(iii)           “Anticipation of a Change of Control” shall mean a knowing act by the Board to terminate Executive’s employment hereunder without Cause or to cause a circumstance constituting Good Reason to occur when the Board has approved or is considering approval of a transaction or series of transactions that the Board believes will result in a Change of Control during the Term or the signing of a definitive agreement during the Term for a transaction or series of transactions that would constitute a Change of Control.

 

	
  

	
 

	

(iv)           “Change of Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record by any Person or group (within the meaning of the Securities Exchange Act of 1934 (“Act”) or any comparable successor provisions of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) of equity interest representing more than 50% of the aggregate voting power represented by the issued and outstanding equity interest of Company; (b) occupation of a majority of the seats on the Board by Persons who were neither (i) nominated by the Board of Directors of Company nor (ii) appointed by the Directors so nominated; provided a Person shall not be deemed so nominated or appointed if such nomination or appointment is the result of a proxy contest or a threatened proxy contest; (c) a merger, consolidation or other corporate transaction of Company (a “Transaction”) such that the shareholders of Company immediately prior to such transaction do not own more than 50% of the aggregate ordinary voting power of the surviving entity immediately after such transaction in approximately the same proportion to each other as immediately prior to the transaction; (d) the sale of all or substantially all of the assets of Company; or (e) approval by the shareholders of Company of a plan of liquidation or dissolution of Company; provided that, to the extent necessary to comply with Section 409A of the Internal Revenue Code and the Rules and Regulations promulgated thereunder, with regard to the making of a distribution, “Change of Control” shall be limited to the occurrence of a change in ownership, change in effective control or change in the ownership of a substantial portion of the assets of Company, as such terms are described in Treasury Regulation Section 1.409A-3(i)(5).

 

 

  

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(v)            “Good Reason” shall mean Executive terminates his employment as a result of (a) any diminution of his titles, position or status without Executive’s written consent thereof; (b) any material diminution of his duties, responsibilities or authority, or the assignment to him of any duties materially inconsistent with his positions, without Executive’s written consent thereof; (c) any relocation of his principal office from Atlanta, Georgia without Executive’s written consent thereof; (d) any material breach of this Agreement by Company; or (e) the Board repeatedly overrides, supersedes or disregards reasonable decisions by Executive or recommendations made by Executive to the Board such that the Board materially interferes with Executive’s ability to effectively function as the President and Chief Executive Officer, or the Board otherwise takes actions that constructively represent a lack of confidence in Executive’s ability to perform his duties and responsibilities; provided that in all cases Executive must provide written notice within ninety (90) days following the occurrence of such action or breach constituting Good Reason; provided further that in all cases the Company shall have fifteen (15) days following receipt of such notice to resolve or cure such action or breach constituting Good Reason.

 

(vi)           “Mutual Retirement” shall mean a retirement with the mutual agreement of the Executive and the Board with a successor chief executive officer of Company approved by both in writing.

 

(vii)           “Person” shall mean any natural person, sole proprietorship, general partnership, limited partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, governmental authority or any other organization irrespective of whether it is a legal entity and includes any successor or transferee of such entity.

 

(viii)           “Retirement” shall mean Executive’s voluntary termination of employment with the Company without Good Reason.   To the extent that any Equity Grant or Benefit Plan provides for additional benefits or rights upon a retirement, Executive shall deem to qualify upon any termination (other than for Cause) and to the extent such benefits or rights are greater as a “Retiree” than otherwise provided based on the other classifications of such termination, Executive shall receive such greater benefits or rights.

 

 

  

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(f)           Disability Termination.          Company may terminate Executive’s employment as a result of a “Disability” if Executive, as a result of mental or physical incapacity, has been unable to perform his material duties for six (6) consecutive months (or 180 days in any 360 day period).  Such termination shall be only permitted while Executive is still so disabled and shall be effective on thirty (30) days written notice to Executive, provided that such termination shall not be effective if Executive returns to full-time performance of his material duties within such thirty (30) day period and continues in such full-time capacity (which full-time status shall be deemed to continue even in the event that vacation or intermittent and diminimus sick leave is taken) for six (6) consecutive months thereafter.  For the avoidance of doubt, in the event that Executive does return to full-time performance but does not continue in such full-time capacity for six (6) consecutive months thereafter, the termination shall be deemed effective on thirty (30) days written notice following the most recent date that Executive fails to continue in such full-time capacity.  Notwithstanding the foregoing, in the event that as a result of absence because of mental or physical incapacity, Executive incurs a “Separation from Service” within the meaning of such term under Section 409A, Executive shall on such date automatically be terminated from employment due to disability.

 

(g)           Executive Benefits.          If Executive’s employment is terminated by Company without Cause or by Executive for Good Reason, then Company shall, at its expense and provided that Executive and/or his spouse and dependents timely elect to participate in the Company’s group health and dental benefit plans under COBRA, the Company shall provide reimbursements for or direct payment to the carrier for the premium costs under COBRA for the Executive, his spouse and dependents for twelve (12) months following Executive’s date of termination.  Company’s obligation hereunder regarding group health insurance shall cease upon Executive becoming covered by the health plan of a subsequent employer.

 

4.           Company Sale.  In the event of a Change of Control and the Company, its successor or transferee terminates the Executive’s employment other than for Cause or the Executive terminates his employment for Good Reason, then, in lieu of any payments to or on behalf of the Executive under Section 1(b)(i) and (ii) hereof, the Company shall pay the Executive a lump sum payment equal to three (3) times the Executive’s Base Salary as of the date of termination.

5.           Confidential Information; Non-Competition and Non-Solicitation.  In consideration of Company’s entering into this Agreement with Executive, Executive hereby:

 

(a)           Confidential Information.         Acknowledges that the continued success of Company depends upon the use and protection of proprietary information.  Executive further acknowledges that the proprietary information obtained by him during the course of his employment with Company concerning the business or affairs of Company is the property of Company (“Confidential Information”).  Therefore, Executive agrees that during the Term and for one (1) year thereafter, Executive will not disclose to any unauthorized person or use for his own account, any Confidential Information, whether or not such information is developed by him, without the Board’s written consent, unless and to the extent that the information (i) is disclosed by Executive in the good faith performance of his duties hereunder; (ii) becomes generally known to the public other than as a result of Executive’s acts or omissions to act in violation of this Section 5(a); or (iii) is required to be disclosed pursuant to applicable law or court order.  Executive shall deliver to Company upon the expiration or termination of employment, all memoranda, notes, plans, records, reports, computer tapes,, printouts and software and other documents and data (and all copies thereof) embodying or relating to the Confidential Information of Company.

 

 

  

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(b)           Non-Competition.        Agrees not to, during his employment and for a period of twelve (12) months thereafter, voluntarily or involuntarily, directly or indirectly, individually or on behalf of any entity or person, as a partner, stockholder, director, officer, principal, agent, employee or in any other capacity or relationship, engage in, aid or assist in any competition with the Company within the United States of America or any foreign country where the Company conducts business.  The Company and the Executive acknowledge the reasonableness of this covenant not to compete and the reasonableness of the geographic area and duration of time which is part of this covenant.  The provisions of this section shall survive the termination of this Agreement by either party.

 

(c)           Non-Solicitation.         Agrees that while Executive is employed by Company and for a period of one (1) year following termination of Executive’s employment with Company that Executive will not directly or indirectly, other than in performing his duties for Company (i) solicit any employee of Company to work for Executive or for any third party, including any competitor (whether an individual or a competing company) of Company; or (ii) induce any such employee of Company to leave the employ of Company.

 

(d)           Remedies.         Acknowledges and agrees that the Company’s remedy at law for a breach or threatened breach of any of the covenants contained in Sections 5(a), (b), or (c) may be inadequate and a breach thereof will cause irreparable harm to the Company. Company may, in the event of a breach or threatened breach and without posting any bond, shall be entitled to obtain a temporary restraining order or other equitable relief which may be available to the Company to prevent and/or deter such action or threatened action.

 

6.          Miscellaneous.

 

(a)           Governing Law and Remedies.         The substantive laws of the State of Georgia shall govern this Agreement, without giving effect to its conflicts of laws principles.  Any disputes or issues arising out or relating to any equity in Company that Executive has received or may become entitled to receive shall also be governed by the laws of the State of Georgia or, with respect to any equity awards granted on Company’s stock (except to the extent it involves interpretation under this Agreement), the laws of the State of Georgia shall prevail without regard to conflicts of laws principles.

(b)           Legal Fees.          Company shall promptly pay Executive’s reasonable legal and financial advisory fees incurred in connection with the entering into of this Agreement.

(d)           Arbitration.          Any dispute hereunder or with regard to any document or agreement referred to herein, other than injunctive relief under Section 5(d) hereof, shall be resolved by arbitration before the American Arbitration Association in Atlanta, Georgia. Company shall pay Executive’s legal fees and disbursements promptly upon presentation of invoices thereof, subject to an obligation of Executive to repay such amounts if an arbitrator finds Executive’s positions in such arbitration or dispute to have been frivolous or made in bad faith.

(e)           Jurisdiction.          The Company hereby consents to the jurisdiction of the federal and state courts in the State of Georgia.

 

 

  

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IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Agreement to be duly executed in their respective names and in the case of the corporation, by its authorized representative, on the day and year first above mentioned.

 

	 	  	
ANTS SOFTWARE INC.,

a Delaware Corporation

	 	  	  
	 	
 By:   

Name and Title:   

 Address:   

	
/s/ Robert Kite

Robert Kite–Chairman Compensation C.

71 Stevenson Street Suite 400

San Francisco CA 94105

	 	  	  
	 	  	
EXECUTIVE

	 	  	  
	 	
By:   

Name:   

Address:   

	
/s/ Joseph Kozak

Joseph Kozak

 

	 	  	  
	 	
Position:   

	
Chairman and Chief Executive Officer

	 	  	  
	 	  	  
	 	  	  
	 	  	  
	 	  	  
	 	  	  
	 	  	  

 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]