Document:

aebf_ex102.htm

EXHIBIT 10.2

 

AE BIOFUELS, INC.

ERIC A. MCAFEE

EMPLOYMENT AGREEMENT

 

This Agreement is made by and between AE Biofuels, Inc. (the “Company”) and Eric A. McAfee (“Employee”) to be effective as of September 1, 2011 (the “Effective Date”).

 

1. Duties and Scope of Employment.

 

a. Position; Employment Commencement Date; Duties.  Employee’s employment with the Company pursuant to this Agreement is effective as of September 1, 2011 (the “Employment Commencement Date”).  On and after the Employment Commencement Date, the Company shall employ the Employee as Chief Executive Officer of the Company reporting to the Board of Directors of the Company.  During the Employment Term (as defined in section 2 herein), Employee shall render such business and professional services in the performance of his duties as are consistent with Employee’s position within the Company, and as shall reasonably be expected from him by the Board of Directors.

 

b. Obligations.  Except as otherwise agreed between the Company and the Employee, during the Employment Term the Employee shall devote reasonable business efforts and time to the Company.  Employee agrees during the Employment Term not to actively engage in any directly competitive employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Company; provided, however, that Employee may serve in any capacity with any civic, educational or charitable organization.

 

2. Employment Term.  It is intended that the employment arrangement contemplated by this Agreement shall continue until the third anniversary of the Effective Date, with automatic one-year extensions thereafter unless terminated by either party on sixty days notice prior to the end of each respective extension year (such three-year period and any extensions being referred to herein as the “Employment Term”).  Notwithstanding the foregoing, the parties agree that neither this Agreement nor any provision herein is intended to guarantee the continuation of Employee’s employment for the duration of the Employment Term.  In the event that Employee’s employment with the Company terminates prior to the expiration of the Employment Term for any reason, the parties agree that Employee shall be entitled to receive only those benefits that are expressly provided by this Agreement in such circumstances.

 

3. Employee Benefits.  During the Employment Term, Employee shall be eligible to participate in the employee and fringe benefit plans maintained by the Company that are applicable to other employees of the Company to the full extent provided for under those plans for the position held by the Employee.

 

4. Vacation.  During the Employment Term, Employee shall have three weeks of paid vacation per year.  In the event of termination, any unused vacation weeks shall be paid as salary continuation.

 

  

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5. Expenses.  While Employee is employed during the Employment Term, the Company will reimburse Employee for reasonable travel, entertainment or other expenses incurred by Employee in the furtherance of or in connection with the performance of Employee's duties hereunder, in accordance with the Company's expense reimbursement policy as in effect from time to time.

 

6. Compensation.

 

a. Base Salary.  While employed by the Company, the Company shall pay the Employee as compensation for his services a base salary at the annualized rate of One Hundred Eighty Thousand Dollars ($180,000) per year (the “Base Salary”).  Such salary shall be paid periodically in accordance with normal Company payroll practices and subject to required withholding.  Employee’s Base Salary shall be reviewed annually by the Company for possible adjustments in light of Employee’s performance and competitive data.

 

b. Bonus.  Employee shall be entitled to receive, within 90 days after the end of each year, an annual bonus and stock option plan participation based upon Employee’s performance and other criteria to be established by the Company.  Except as permitted under Section 7, Employee must be employed by the Company during the entire applicable bonus period for the payment of the Bonus.  With respect to any subjective milestones, the determination of whether Employee has attained the mutually agreed upon milestones for the Bonus shall be reasonably determined by the Employee’s supervisor.

 

c. Severance.

 

i. Involuntary Termination Other Than for Cause; Constructive Termination.  If Employee’s employment with the Company is Constructively Terminated or involuntarily terminated by the Company other than for Cause (as defined below), Employee’s death, or Employee’s Total Disability, then, subject to Employee executing and not revoking a standard form of mutual release of claims with the Company, Employee shall be entitled to receive continuing payments of severance pay (less applicable withholding taxes) at the rate equal to Employee’s Base Salary, as then in effect, for a period of six (6) months from the date of such termination in accordance with the Company’s  normal payroll practices.  In addition to the foregoing severance benefits, Employee shall receive at the Company’s expense 100% of Company-paid health, dental and vision insurance benefits at the same level of coverage as was provided to Employee immediately prior to the termination of Employee’s employment with the Company (“Company-Paid Coverage”).  If such coverage included Employee’s dependents immediately prior to Employee’s termination, such dependents shall also be covered at the Company’s expense.  Company-Paid Coverage shall continue until the earlier of (i) six (6) months following the date of the termination of Employee’s employment ( the “Benefits Termination Date”), or (ii) the date upon which Employee or Employee’s dependents become covered under another employer’s group health, dental and vision insurance benefit plans.

 

  

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ii. Involuntary Termination Other Than for Cause; Constructive Termination On or Following Change of Control.  If, on or following a Change of Control, Employee’s employment with the Company is Constructively Terminated or involuntarily terminated by the Company other than for Cause, Employee’s death, or Employee’s Total Disability, then, subject to Employee executing and not revoking a standard form of mutual release of claims with the Company, in addition to the severance benefits set forth in Section 6d(i) above, all of Employee’s stock options and restricted stock shall immediately accelerate vesting as to 100% of the then unvested shares.

 

iii. Cause Definition.  For the purposes of this Agreement, “Cause” means (1)  Employee’s material, willful and continuing breach of his obligations to the Company after thirty (30) days written notice from the Company specifying the nature of Employee’s breach and demanding that such breach be remedied (unless such breach by its nature cannot be cured, in which case notice and an opportunity to cure shall not be required); (2) Employee’s conviction of a felony that is injurious to the Company or its business; or (3) act or acts of dishonesty by Employee that are materially injurious to the Company or its business.

 

iv. Constructive Termination Definition.  For the purposes of this Agreement, “Constructive Termination” means, without Employee’s written consent, (i) a material reduction in Employee’s salary or benefits; provided, however, that a reduction in Employee’s salary or benefits will not constitute a Constructive Termination if it is part of and proportional to a reduction in salary or benefits of the Company’s executive staff as a whole, (ii) a material diminution of Employee’s officer title, duties, authority or responsibilities as in effect immediately prior to such diminution.

 

v. Change of Control Definition.  For the purposes of this Agreement, “Change of Control” means, in one or a series of transactions:  (1) a reorganization or merger of the Company with or into any other Company which will result in the Company’s shareholders immediately prior to such transaction not holding, as a result of such transaction, at least 50% of the voting power of the surviving or continuing entity or the entity controlling the surviving or continuing entity; (2) a sale of all or substantially all of the assets of the Company which will result in the Company’s shareholders immediately prior to such sale not holding, as a result of such sale, at least 50% of the voting power of the purchasing entity; (3) a change in the majority of the Board not approved by at least two-thirds of the Company’s directors in office prior to such change; or (4) the adoption of any plan of liquidation providing for the distribution of all or substantially all of the Company’s assets. It is the intent of the Company to become publicly traded and such transaction, which may include the merger or acquisition of the Company, shall not constitute a Change of Control for purposes of this agreement.

 

vi. Total Disability Definition.  For the purposes of this Agreement, “Total Disability” shall mean Employee’s mental or physical impairment which has or is likely to prevent Employee from performing the responsibilities and duties of his position for three (3) months or more in the aggregate during any six (6) month period.  Any question as to the existence or extent of Employee’s disability upon which the Employee and the Company cannot agree shall be resolved by a qualified independent physician who is an acknowledged expert in the area of the mental or physical impairment, selected in good faith by the Board and Employee (or his personal administrator).

 

vii. No Mitigation.  Except as specifically provided herein, the Employee shall not be required to mitigate the value of any severance benefits contemplated by this Agreement, nor shall any such benefits be reduced by any earnings or benefits that the Employee may receive from any other source.

 

  

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viii. Voluntary Termination other than pursuant to a Constructive Termination; Involuntary Termination for Cause.  If, during the Employment Term, the Employee's employment is terminated by the Company for Cause, or by Employee for any reason, other than death, Total Disability or pursuant to a Constructive Termination, then all further vesting of any option, restricted stock award or other Company equity compensation held by Employee will cease immediately (however, Employee shall be permitted to exercise vested options for the time period specified in his option agreements and he shall retain all vested restricted shares) and all payments of compensation by the Company to Employee hereunder will terminate immediately (except as to amounts already earned).

 

ix. Involuntary Termination on Death.  If, during the Employment Term, the Employee's employment is terminated by the Company as a result of Employee’s death, then 50% of unvested equity awards from the Company then held by Employee shall immediately vest, or if Employee is then holding unvested shares, the Company’s right to repurchase the then-unvested shares under each such equity award shall lapse, with respect to 50% of the shares under each such award.

 

7. Assignment.  This Agreement shall be binding upon and inure to the benefit of (a) the heirs, beneficiaries, executors and legal representatives of Employee upon Employee’s death and (b) any successor of the Company.  Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes.  As used herein, “successor” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

 

8. Notices.  All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given if (i) delivered personally or by facsimile, (ii) one (1) day after being sent by Federal Express or a similar commercial overnight service, or (iii) three (3) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors in interest at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid:

 

	
a.  

	
If to the Company:

AE Biofuels, Inc.

20400 Stevens Creek Blvd., Suite 700

Cupertino, CA  95014

Fax:  (408) 213-0925

 

	
b.  

	
If to Employee:

 

Eric A. McAfee

20400 Stevens Creek Blvd., Suite 700

Cupertino, CA  95014

Email:  eamcafee@ix.netcom.com

Phone:  (408) 390-3275     Fax:      (408) 904-7536

or at the last residential address known by the Company.

 

  

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9. Proprietary Information Agreement.  Employee agrees to enter into the Company’s standard Employment, Confidential Information and Invention Assignment Agreement (the “Proprietary Information Agreement”) upon commencing employment hereunder.

 

10. Entire Agreement.  This Agreement and the employee benefit plans referred to in Section 3 and the Proprietary Information Agreement represent the entire agreement and understanding between the Company and Employee concerning Employee’s employment relationship with the Company, and supersede and replace any and all prior agreements and understandings concerning Employee’s employment relationship with the Company.

 

11. No Oral Modification, Cancellation or Discharge.  This Agreement may only be amended, canceled or discharged in writing signed by Employee and the Company’s Chief Financial Officer.

 

12. Withholding.  The Company shall be entitled to withhold, or cause to be withheld, from payment any amount of withholding taxes required by law with respect to payments made to Employee in connection with his employment hereunder.

 

13. Governing Law.  This Agreement shall be governed by the laws of the State of California without reference to rules relating to conflict of law.

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of September 1, 2011:

 

 

	AE BIOFUELS, INC.	 
	 	 
	 	 
	 /s/ Todd Waltz   	 
	Todd Waltz	 
	Chief Financial Officer	 
	 	 
	Date:  September 1, 2011	 
	 	 
	 	 
	EMPLOYEE	 
	 	 
	 /s/ Eric A McAfee     	 
	Eric A. McAfee	 
	 	 
	Date:  September 1, 2011	 

 

 

5mine_ex101.htm

 

Exhibit 10.1

 

 

EXHIBIT  1

THE SECURITIES EVIDENCED BY THIS CONVERTIBLE NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OR OTHERWISE TRANSFERRED, IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY SUCH APPLICABLE STATE LAWS.

 Minerco Resources, Inc.

Convertible Note

Date: October 12, 2010

FOR VALUE RECEIVED,  Minerco Resources, Inc., a Nevada corporation  (“Maker”),

hereby promises to pay to FTB Enterprises, Inc., where its principal address is 19 Corner West at Cemetery Road, Belize City, Belize, Central America (“Lender” or “Holder”), the principal amount advanced by Lender, together with interest on the unpaid principal amounts as set forth in this Convertible Note (this “Note”) (the Loans and interest thereon

referred to collectively as the “Indebtedness”) by a date one year after Maker is first “piggy back qualified” quoted on the OTC, (“Maturity Date”).

The principal amount advanced by Lender is, in U.S. dollars: US$ 100,000.00

1. Interest on the Loan. From the date of each such Loan and thereafter until maturity or earlier repayment in full of such Loan, interest on the principal amount of each Advance Loan outstanding shall be calculated on the basis of a 360-day year and shall be computed for each payment period on the basis of the actual number of days elapsed for each such Advance Loan (including the first day but excluding the last day), and accrue at 0 percent compounded annually. Interest shall be payable on the Maturity Date.

2. Payments.

(a) Interest Rate for Overdue Amounts. Beginning fifteen days after the Maturity Date, interest shall accrue on all unpaid Indebtedness at the annual rate set forth in Section 1 above.

(b) Other Payment Provisions. All payments of principal and interest hereunder shall be payable to Lender in lawful money of the United States of America in immediately available funds. All delivery of payments shall be made at the offices of Lender, or at such other place as Lender may designate in writing, not later than 2 p.m. on the date when due, without offset. Any payment coming due on a day which is not a Business Day, shall be made on the next succeeding Business Day, and any such extension of the time of payment shall be included in the computation of interest payments.

(c) Prepayments. Maker may prepay the unpaid balance of any of the Loans in whole at any time or in part from time to time without penalty; provided that any such prepayment is accompanied by interest accrued and unpaid on the amount so prepaid to the date of such prepayment.

3. Maturity. The entire outstanding Indebtedness hereunder, including any and all accrued and unpaid interest and any other amounts due hereunder, shall become due and payable in full on Maturity Date. Or alternatively, the maturity date can be extended to one year after company is quoted on the OTC at Maker’s Option.

 

  

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4. Assignment. Maker may not assign, transfer, novate or dispose of this Note, or any of its interests, rights or obligations hereunder, without the prior written consent of Lender.

5. Default and Acceleration:

(a) The occurrence of any of the following shall constitute an “Event of Default” under this Secured Convertible Note.

 

 

	 (i)  	The failure of Maker to pay any part of this indebtedness when due
	 (ii)  	The institution of legal proceedings against the Maker under any state insolvency laws, federal bankruptcy law, or similar debtor relief laws then in effect.

 

(b) In the event of (a)(i) or (a)(ii) above, then a default may be declared at the option of Lender without presentment, demand, protest or further notice of any kind (all of which are hereby expressly waived by Maker). In such event Lender shall be entitled to be paid in full the balance of any unpaid principal amount hereunder plus all accrued and unpaid interest hereunder and any costs to enforce the terms hereof, including, without limitation, reasonable attorneys’ fees. Lender may waive any Event of Default before or after it occurs and may restore this Secured Convertible Note in full effect without impairing the right to declare it due for a subsequent default.

(c) No course of dealing between Lender and Maker or any failure or delay on the part of Lender in exercising any rights or remedies hereunder shall operate as a waiver of any rights or remedies of Lender under this or any other applicable instrument. No single or partial exercise of any rights or remedies hereunder shall operate as a waiver or preclude the exercise of any other rights or remedies hereunder.

(d) Lender is empowered to set off and apply any moneys at any time held or any other indebtedness at any time due and payable by Lender to or for the credit of Maker against the Indebtedness of Maker evidenced by this Note. Lender shall promptly notify Maker after any such set-off, provided that the failure to provide notice shall not affect the validity of the set-off.

(e) None of the rights, remedies, privileges or powers of Lender expressly provided for herein shall be exclusive, but each of them shall be cumulative with and in addition to every other right, remedy, privilege and power now or hereafter existing in favor of Lender, whether at law or in equity, by statute or otherwise.

(f) Maker shall pay all reasonable expenses of any nature, whether incurred in or out of court, and whether incurred before or after this Note shall become due at its maturity date or otherwise (including but not limited to reasonable attorneys' fees and costs) which Lender may deem necessary or proper in connection with the satisfaction of Indebtedness. Lender is authorized to pay at any time and from time to time any or all of such expenses, add the amount of such payment to the amount of principal outstanding and charge interest thereon at the rate specified herein.

 

 

  

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6. Conversion. Each Convertible Note plus accrued interest can be converted into shares at any time before the Maturity Date by the Note Holder at a Conversion Price of $0.0004 per share at the time of conversion. And in the event of a default each Convertible Note plus accrued interest can be converted into shares at any time after the default date by the Note Holder at a Conversion Price of par value, or half of the average bid price over the last five trading days, whichever is lower, but in no case for an amount less than a 51% interest in the company.

7. Severability. In the event any one or more of the provisions contained in this Note or any other loan document shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Note or such other loan documents, but this Note and such other loan document shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein or therein.

8. Representation and Warranty. Maker hereby declares, represents and warrants to Lender that it is a business or commercial organization and that the Indebtedness evidenced hereby is made for the purpose of acquiring or carrying on a business or commercial enterprise within the meaning of the laws of the State of Nevada.

9. Waiver of Trial by Jury: Maker agrees that any suit, action or proceeding, whether claim or counterclaim, brought or instituted by Lender on or with respect to this Note shall be tried only by a court and not by a jury. MAKER HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING. Maker acknowledges and agrees that Lender would not extend credit hereunder if this waiver of a jury trial were not part of this Note.

10. Governing Law: This Note shall be construed in accordance with and governed

by the laws of the State of Nevada, without regard to its principles of conflicts of law.

11. Assignable. This note and Lender’s Interest in it, may not be assigned without prior written consent of Maker.

12. Maker agrees to register shares under Securities Act of 1933 until shares become available for resale under Rule 144(k).

  

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IN WITNESS WHEREOF, the undersigned has caused this Note to be executed on the day and year first above written.

Minerco Resources, Inc.

22503 Katy Highway, #18

Katy, Texas  77450

 

	By:		 
	 	  [signature]	 
	 	V. Scott Vanis, Chief Executive Officer	 

 

and

FTB Enterprises, Inc.

19 Corner West at Cemetery Road,

Belize City, Belize, Central America

 

	By:		 
	 	
Marcia del Carmen Melendez, General Manager

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