Document:

Unassociated Document

    CONSULTING
      AGREEMENT

     

    This
      CONSULTING AGREEMENT (the "Agreement"), is effective as January 1, 2008,
      between: Mr. Robert Schechter at Equity Communications (the “Consultant”), with
      an office at 551 Fifth Ave. #3025 New York, NY 10176 and KIWA Bio-Tech Products
      Group Corporation, ("Company"), with offices at 415 W. Foothill Blvd., #206
      Claremont CA 91711 

    

    WITNESSETH

     

    WHEREAS,
      the Company requires and will continue to require consulting services relating
      to management advisement, strategic planning and marketing in connection with
      its business, together with advisory and consulting related to shareholder
      management and public relations; 

     

    WHEREAS,
      Consultant is qualified to provide the Company with the aforementioned
      consulting services and is desirous to perform such services for the Company;
      

     

    WHEREAS,
      the Company wishes to induce Consultant to provide these consulting services
      to
      the Company and wishes to contract with the Consultant regarding the same
      believing it to be in its best interest, 

     

    NOW,
      THEREFORE, in consideration of the mutual covenants hereinafter stated, it
      is
      agreed as follows: 

     

    1. APPOINTMENT.
      

     

    The
      Company hereby engages Consultant and Consultant agrees to render services
      to
      the Company as a consultant upon the terms and conditions hereinafter set forth.
      

     

    2. TERM.
      

     

    The
      term
      of this Consulting Agreement began as of the date of this Agreement, and shall
      terminate on June 30, 2008, unless earlier terminated in accordance with
      paragraph 9 herein or extended as agreed to between the parties. 

     

    3. SERVICES.
      

     

    During
      the term of this Agreement, Consultant shall provide advice to undertake for
      and
      consult with the Company concerning management, marketing, consulting, strategic
      planning, corporate organization and structure, financial matters in connection
      with the operation of the businesses of the Company, expansion of services,
      acquisitions and business opportunities, and shall review and advise the Company
      regarding its overall progress, needs and condition. The services of Consultant
      shall not be exclusive nor shall Consultant be required to render any specific
      number of hours or assign specific personnel to the Company or its projects.
      The
      parties hereto acknowledge and agree that Consultant cannot guarantee the
      results or effectiveness of any of the services rendered or to be rendered
      by
      Consultant. Rather, Consultant shall conduct its operations and provide its
      services in a professional manner and in accordance with good industry practice.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Consultant
      agrees to provide on a timely basis the following enumerated services plus
      any
      additional services contemplated thereby: 

     

    (a)
      The
      implementation of short-range and long-term strategic planning to fully develop
      and enhance the Company's assets, general resources, products and services;
      and

     

    (b)
      Advise the Company relative to its operational needs, relating specifically
      to
      past and future corporate transactional and mergers and acquisitions matters.
      

     

    (c)
      Advise the Company in relation to shareholder management and public relations.
      

     

    Consultant
      shall be available for advice and counsel to the officers and directors of
      the
      Company at such reasonable and convenient times and places as may be mutually
      agreed upon. Except as foresaid, the time, place and manner of performance
      of
      the services hereunder, including the amount of time to be allocated by
      Consultant to any specific service, shall be determined at the sole discretion
      of Consultant. 

     

    4. DUTIES
      OF THE COMPANY. 

     

    The
      Company shall provide Consultant, on a regular and timely basis, with all
      approved data and information about it, its subsidiaries, its management, its
      products and services and its operations as shall be reasonably requested by
      Consultant, and shall advise Consultant of any facts which would affect the
      accuracy of any data and information previously supplied pursuant to this
      paragraph. The Company shall promptly supply Consultant with full and complete
      copies of all financial reports, all fillings with all federal and state
      securities agencies; with full and complete copies of all stockholder reports;
      with all data and information supplied by any financial analyst, and with all
      brochures or other sales materials relating to its products or services.

     

    5. COMPENSATION.
      

     

    Upon
      execution of this Agreement and in settlement for its services hereunder, the
      Consultant shall receive $1,000 per month and 140,000 Company’s common stocks.
      The Company further agrees to execute a written request to its transfer agent
      to
      prepare and deliver, per Consultant’s instructions, one stock certificate to Mr.
      Robert Schechter for the Company’s shares of common stock. 

     

    6. REPRESENTATION
      AND INDEMNIFICATION. 

     

    The
      Company shall be deemed to have been made a continuing representation of the
      accuracy of any and all facts, material information and data which it supplies
      to Consultant and acknowledges its awareness that Consultant will rely on such
      continuing representation in disseminating such information and otherwise
      performing its advisory functions. Consultant in the absence of notice in
      writing from the Company, will rely on the continuing accuracy of material,
      information and data supplied by the Company. The Company agrees to indemnify,
      hold harmless and defend Consultant, its agents or employees from any proceeding
      or suit which arises out of or is due to the inaccuracy or incompleteness of
      any
      material or information supplied by the Company to Consultant. Consultant
      represents that he has knowledge of and is experienced in providing the
      aforementioned services. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7. COMPLIANCE
      WITH SECURITIES LAWS. 

     

    The
      Company understands that any and all compensation outlined in Section 5 shall
      be
      paid solely and exclusively as consideration for the aforementioned consulting
      efforts made by Consultant on behalf of the Company as an independent
      contractor. Consultant is a natural person. Any monies transferred to Company
      by
      Consultant herein is not made with the intent to raise capital or to provide
      the
      Company with capital. Consultant has been engaged to provide the Company with
      traditional business, management, technical and operational consulting, and
      related business services. Consultant’s engagement does not involve the
      promotion or marketing of the Company’s securities (including it's common
      stock), nor does it involve raising money for the Company. 

     

    8. CONFIDENTIALITY
      

     

    Consultant
      will not disclose, without the consent of the Company, any financial or business
      information concerning the business, affairs and plans of the Company which
      Consultant may receive from the Company, provided such information is plainly
      marked in writing by the Company as being confidential (the Confidential
      Information). Consultant will not be bound by the foregoing limitation in the
      event (i) the Confidential Information is otherwise disseminated and becomes
      public information, or (ii) Consultant is required to disclose the Confidential
      Information pursuant to a subpoena or other judicial order. 

     

    9. MISCELLANEOUS.
      

     

    Termination:
      This
      Agreement may be terminated by either Party upon written notice to the other
      Party for any reason which shall be effective five (5) business days from the
      date of such notice. This Agreement shall be terminated immediately upon written
      notice for material breach of this Agreement. Upon termination, and fees or
      expenses due to Consultant shall become immediately payable. 

     

    Modification:
      This
      Consulting Agreement sets forth the entire understanding of the Parties with
      respect to the subject matter hereof. This Consulting Agreement may be amended
      only in writing signed by both Parties. 

     

    Notices:
      Any
      notice required or permitted to be given hereunder shall be in writing and
      shall
      be mailed or otherwise delivered in person or by facsimile transmission at
      the
      address of such Party set forth above or to such other address or facsimile
      telephone number as the Party shall have furnished in writing to the other
      Party. 

     

    Waiver:
      Any
      waiver by either Party of a breach of any provision of this Consulting Agreement
      shall not operate as or be construed to be a waiver of any other breach of
      that
      provision or of any breach of any other provision of this Consulting Agreement.
      The failure of a Party to insist upon strict adherence to any term of this
      Consulting Agreement on one or more occasions will not be considered a waiver
      or
      deprive that Party of the right thereafter to insist upon adherence to that
      term
      of any other term of this Consulting Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Assignment:
      The
      Agreement is not assignable by either party unless agreed in writing.

     

    Severability:
      If any
      provision of this Consulting Agreement is invalid, illegal, or unenforceable,
      the balance of this Consulting Agreement shall remain in effect, and if any
      provision is inapplicable to any person or circumstance, it shall nevertheless
      remain applicable to all other persons and circumstances. 

     

    Disagreements:
      Any
      dispute or other disagreement arising from or out of this Consulting Agreement
      shall be submitted to arbitration under the rules of the American Arbitration
      Association and the decision f the arbiter(s) shall be enforceable in any court
      having jurisdiction thereof. Arbitration shall occur only in San Diego County,
      CA. The interpretation and the enforcement of this Agreement shall be governed
      by California Law as applied to residents of the State of California relating
      to
      contracts executed in and to be performed solely within the State of California.
      In the event any dispute is arbitrated, the prevailing Party (as determined
      by
      the arbiter(s)) shall be entitled to recover that Party's reasonable attorney's
      fees incurred (as determined by the arbiter(s)). 

     

    IN
      WITNESS WHEREOF, this Consulting Agreement has been executed by the Parties
      as
      of the date first above written. 

     

    For
      and
      on behalf of: Kiwa Bio-Tech Products Group Corporation Equity
      Communications

     

    
      	
            	 	 	
            
	Wei Li 	 	 	Robert Schechter
	President/CEO	 	 	January 10,
              2008VICE
      PRESIDENT, CHIEF FINANCIAL OFFICER

    

    

    

    Effective:
      January 1, 2008

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    VICE
      PRESIDENT, CHIEF FINANCIAL OFFICER

    

    PURPOSE:
      To define the compensation plan for the Vice President, Chief Financial Officer.
      

    

    SCOPE:
      Perma-Fix Environmental Services, Inc. 

    

    POLICY:
      The Vice President, Chief Financial Officer Compensation Plan is designed to
      retain, motivate and reward the incumbent to support and achieve the business,
      operating and financial objectives of Perma-Fix Environmental Services, Inc.
      

    

    BASE
      SALARY: The Base Salary indicated below is paid in equal periodic installments
      per the regularly scheduled payroll. 

    

    PERFORMANCE
      INCENTIVE COMPENSATION: Performance Incentive Compensation is available based
      on
      the Company’s financial results noted in Schedule A. Performance incentive
      compensation prepayments are payable in the month following each calendar year
      quarter and annual performance incentive pay is payable in the month following
      the close of the company’s financial books.

    

    SEPARATION:
      Upon voluntary or involuntary separation from the Company the employee will
      be
      paid the base salary due to the last day of employment. If employment is
      separated prior to a regularly scheduled quarterly or annual incentive
      compensation payment period as noted above, no incentive compensation is due
      to
      the incumbent. 

    

    ACKNOWLEDGEMENT:
      No Base Salary or Performance Incentive Compensation of any type will be
      provided until the Human Resources Department has received a signed
      acknowledgement of receipt of the Compensation Plan. 

    

    INTERPRETATIONS:
      The Compensation Committee of the Board of Directors retains the right to
      modify, change or terminate the Compensation at any time and for any reason.
      It
      also reserves the right to determine the final interpretation of any provision
      contained in the Compensation Plan and it reserves the right to modify or change
      the Revenue and Net Income Targets as defined herein in the event of the sale
      or
      disposition of any of the assets of the Company. While the plan is intended
      to
      represent all situations and circumstances some issues may not easily be
      addressed. The Compensation Committee will endeavor to review all standard
      and
      non-standard issues related to the Compensation Plan and will provide quick
      interpretations that are in the best interest of the Company, its shareholders
      and the incumbent. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    VICE
      PRESIDENT, CHIEF FINANCIAL OFFICER

     

    Base
      Pay and Performance Incentive Compensation Targets

    

    The
      compensation for the below named individual as follows:

    

    

      
        	
                Annualized
                  Base Pay:

              	 	
                $

              	
                216,320

              	 
	
                Performance
                  Incentive Compensation Target (at 100% of Plan):

              	 	 	
                54,080

              	 
	
                Total
                  Annual Target Compensation (at 100% of Plan):

              	 	
                $

              	
                270,400

              	 

      

    The
      Performance Incentive Compensation Target is based on the schedule below.

    

    
      	
              Target Objectives

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
              Performance Target Thresholds

            	 
	 	 	
              Weights

            	 	
              85-100%

            	 	
              101-120%

            	 	
              121-130%

            	 	
              131-140%

            	 	
              141-150%

            	 	
              151-160%

            	 	
              161%+

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Revenue

            	 	 	
              15

            	
              %

            	 	
              8,112
                

            	 	 	
              9,734
                

            	 	 	
              10,547
                

            	 	 	
              11,390
                

            	 	 	
              12,168
                

            	 	 	
              12,979
                

            	 	 	
              14,196
                

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Net Income

            	 	 	
              55

            	
              %

            	 	
              29,744
                

            	 	 	
              35,693
                

            	 	 	
              38,669
                

            	 	 	
              41,643
                

            	 	 	
              44,616
                

            	 	 	
              47,590
                

            	 	 	
              52,052
                

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Health & Safety

            	 	 	
              15

            	
              %

            	 	
              8,112
                

            	 	 	
              9,734
                

            	 	 	
              10,547
                

            	 	 	
              11,390
                

            	 	 	
              12,168
                

            	 	 	
              12,979
                

            	 	 	
              14,196
                

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Permit & License Violations

            	 	 	
              15

            	
              %

            	 	
              8,112
                

            	 	 	
              9,734
                

            	 	 	
              10,547
                

            	 	 	
              11,390
                

            	 	 	
              12,168
                

            	 	 	
              12,979
                

            	 	 	
              14,196
                

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Unbilled Receivables

            	 	
              * If criteria (Item #5) for reducing uniblled AR are not met bonus will be reduced by 15%.

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              54,080
                

            	 	 	
              64,896
                

            	 	 	
              70,310
                

            	 	 	
              75,814
                

            	 	 	
              81,118
                

            	 	 	
              86,528
                

            	 	 	
              94,639
                

            	 

    

     

    
      	
              1)

            	
              Revenue
                is defined as the total consolidated third party top line revenue
                as
                publicly reported in the Company’s financial statements. The percentage
                achieved is determined by comparing the actual consolidated revenue
                to the
                Board approved budgeted revenue. The Board reserves the right to
                modify or
                change the Revenue Targets as defined herein in the event of the
                sale or
                disposition of any of the assets of the Company or in the event of
                an
                acquisition. 

            

    

     

    
      	
              2)

            	
              Net
                Income is defined as the total consolidated bottom line net income
                applicable to Common Stock as publicly reported in the Company’s financial
                statements. The net income will include all subsidiaries, corporate
                charges, dividends and discounted operations. The percentage achieved
                is
                determined by comparing the actual net income to the Board approved
                budgeted net income. The Board reserves the right to make adjustments
                to
                net income so as not to penalize the employee for actions in the
                current
                year which will contribute to net income in future years and it reserves
                the right to modify or change the Net Income Targets as defined herein
                in
                the event of the sale or disposition of any of the assets of the
                Company
                or in the event of an acquisition. The Board further reserves the
                right to
                adjust net income to reflect charges resulting from the vesting of
                incentive stock options.

            

    

     

    
      	
              3)

            	
              The
                Health and Safety Incentive target is based upon the actual number
                of
                Worker’s Compensation Lost Time Accidents, as provided by the Company’s
                Worker’s Compensation carrier. The Corporate Treasurer will submit a
                report on a quarterly basis documenting and confirming the number
                of
                Worker’s Compensation Lost Time Accidents, supported by the AIG Worker’s
                Compensation Loss Report. Such claims will be identified on the loss
                report as “indemnity claims.” The following number of Worker’s
                Compensation Lost Time Accidents and corresponding Performance Target
                Thresholds has been established for the annual Incentive Compensation
                Plan
                calculation for 2008.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

      
        	
                Work
                  Comp.

                Claim
                  Number

              	 	
                Performance

                Target

              	 
	
                7

              	 	 	
                85%
                  - 100

              	
                %

              
	
                6

              	 	 	
                101%
                  - 120

              	
                %

              
	
                5

              	 	 	
                121%
                  - 130

              	
                %

              
	
                4

              	 	 	
                131%
                  - 140

              	
                %

              
	
                3

              	 	 	
                141%
                  - 150

              	
                %

              
	
                2

              	 	 	
                151%
                  - 160

              	
                %

              
	
                1

              	 	 	
                161%
                  Plus

              	 

      

    

     

    
      	 	
              4)

            	
              Permits
                or License Violations incentive is earned/determined according to
                the
                scale set forth below:  An “official notice of non-compliance” is
                defined as an official communication from a local, state, or federal
                regulatory authority alleging one or more violations of an otherwise
                applicable Environmental, Health or Safety requirement or permit
                provision, which results in a facility’s implementation of corrective
                action(s). 

            

    

     

    
      
        	
                Permit
                  and 

                License
                  Violations

              	 	
                Performance

                Target

              	 
	
                7

              	 	 	
                85%
                  - 100

              	
                %

              
	
                6

              	 	 	
                101%
                  - 120

              	
                %

              
	
                5

              	 	 	
                121%
                  - 130

              	
                %

              
	
                4

              	 	 	
                131%
                  - 140

              	
                %

              
	
                3

              	 	 	
                141%
                  - 150

              	
                %

              
	
                2

              	 	 	
                151%
                  - 160

              	
                %

              
	
                1

              	 	 	
                161%
                  Plus

              	 

      

    

    

    
      	 	
              5)

            	
              Unbilled
                trade receivables is the amount of unbilled reported per 10Q or 10K
                combining both the long term and current portion of unbilled. Unbilled
                trade receivable balances older than 12/31/06 should be reduced by
                $3
                million from $7,543,708 as of 12/31/07 to $4,543,708 by
                12/31/08.

            

    

    

    
      	 	
              6)

            	
              No
                performance incentive compensation will be payable for achieving
                the
                health and safety and permit and license violation targets unless
                a
                minimum of 70% of the net income target is
                achieved.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Performance
      Incentive Compensation Prepayments

    

    Performance
      incentive compensation will be prepaid each calendar to be applied against
      the
      annual performance incentive compensation when payable. This prepayment will
      be
      calculated as follows:

    

    First
      Quarter – a prepayment of the performance incentive compensation will be
      earned and payable by a comparison of the Board approved budget for the first
      quarter to the actual result for the first quarter. With regard to the Health
      and Safety and the Permit and License Violations incentive, the number of claims
      or violations for the performance target shall be one quarter of the annual
      number. The prepayment will be 15% of the performance incentive compensation
      which will be earned for the full year if this percentage achievement of the
      targets is maintained for the full year. 

    

    Second
      Quarter – a prepayment of the performance incentive compensation will be earned
      and payable by a comparison of the Board approved budget for the first and
      second quarters to the actual result for the first and second quarters. With
      regard to the Health and Safety and the Permit and License Violations incentive,
      the number of claims or violations for the performance target shall be two
      quarters of the annual number. The prepayment will be 30% of the performance
      incentive compensation which will be earned for the full year if this percentage
      achievement of the targets is maintained for the full year less the amount
      of
      the prepayment paid for the first quarter. 

    

    Third
      Quarter – a prepayment of the performance incentive compensation will be earned
      and payable by a comparison of the Board approved budget for the first, second
      and third quarters to the actual result for the first, second and third
      quarters. With regard to the Health and Safety and the Permit and License
      Violations incentive, the number of claims or violations for the performance
      target shall be three quarters of the annual number. The prepayment will be
      45%
      of the performance incentive compensation which will be earned for the full
      year
      if this percentage achievement of the targets is maintained for the full year
      less the amount of the prepayment paid for the first and second
      quarters.

    

    If
      at the
      conclusion of any calendar quarter, the performance incentive compensation
      prepayment due to an employee is negative as a result of subtracting the
      prepayments paid in previous quarters and the amount exceeds $25,000, the
      company will recover this overpayment by deducting this amount from payroll
      paid
      in accordance with the company’s normal payroll practices.

    

    ACKNOWLEDGMENT:

    

    I
      acknowledge receipt of the aforementioned Vice President, Chief Financial
      Officer 2008 - Compensation Plan. I have read and understand and accept
      employment under the terms and conditions set forth therein.

     

    
      	
              /s/
                Steve Baughman

            	 	
              8/6/08

            	 
	
              /s/
                Steve Baughman

            	 	
              Date

            	 
	 	 	 	 
	
              /s/
                Jack Lahav

            	 	
              8/6/08

            	 
	
              /s/Board
                of Directors

            	 	
              Date

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