Document:

istar_ex1005.htm

 

Exhibit 10.5

 

 

INTERNATIONAL STAR, INC.

SUBSCRIPTION AND INDEMNIFICATION AGREEMENT

International Star, Inc.

P.O. Box 7202

Shreveport, Louisiana  71137

RE:           Subscription for Common Stock of International Star, Inc.

Ladies and Gentlemen:

1.  Subscription.  This Subscription and Indemnification Agreement (“Subscription Agreement”) is executed by the undersigned subscriber (the “Subscriber”) who desires to purchase shares of common stock, par value $0.001 (“Common Stock”), of International Star, Inc., a Nevada corporation (the “Company”), pursuant to the terms and conditions as stated herein (the “Offer”).

The Subscriber hereby subscribes to purchase 12,500,000 shares of the Company’s Common Stock (the “Shares”) at a price of $0.008 per Share, for a total subscription price of One Hundred Thousand Dollars ($100,000.00) (the “Total Subscription Price”).

By executing this Subscription Agreement, Subscriber agrees to pay the full amount of the Total Subscription Price and receive the Shares subscribed for, subject to the following terms:

Payment for the Total Subscription Price shall be made in cash upon the delivery of this Subscription Agreement to the Company by the Subscriber delivering a check for the Total Subscription Price, payable to the order of International Star, Inc., or by wire transfer to the account of the Company for the Total Subscription Price.

2.  Acceptance of Subscription.  This subscription is made subject to acceptance by the Company on the following terms and conditions, and the Subscriber represents and warrants to the Company that the Subscriber understands and agrees to such terms and conditions:

(a)           The Offer is being made for the purpose of raising funds to pay current operating expenses and for general working capital of the Company, as more fully described in Section 3(g) hereof.

(b)           The Shares offered by the Company will be subject to the Company’s right to reject the subscription in whole or part (whether or not the Subscriber’s check or wired payment is deposited into the Company’s account), withdrawal or cancellation of the Offer and the Company’s receipt and acceptance of a validly completed and executed Subscription Agreement.

(c)(1)           When the Company receives the Subscriber’s check for the Total Subscription Price and executed Subscription Agreement, the Subscriber’s check will be deposited into the Company’s account.  Only when the check is paid or the funds transfer is completed and the subscription is accepted by the Company will the Company instruct its transfer agent to issue to the Subscriber a certificate representing the number of Shares of Common Stock subscribed.

  

 

  

(2)           If management of the Company decides to terminate the Offer prior to the termination date provided herein, which the Company may do upon notice to the Subscriber, or if the subscription is rejected, the Subscriber will be refunded all funds forwarded by the Subscriber together with any interest thereon.  Unless earlier terminated or extended by the Company, the Offer will terminate at 5:00 p.m. Central Time on Friday, April 29, 2011.

(d)           This Offer is being made pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder, and pursuant to an exemption or exception from registration under the securities laws of the state where the Subscriber is principally located.

(e)           This Offer is being made to the Subscriber based solely on the Subscriber’s status as an accredited investor, as that term is defined in Rule 501(a) of Regulation D.

(f)           The certificate(s) issued to the Subscriber representing the Shares shall bear the following legend restricting transfer thereof and containing substantially the following language.

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be sold or otherwise transferred unless compliance with the registration provisions of such act has been made or unless the availability of an exemption from such registration provisions has been established, or unless sold pursuant to Rule 144 under the Securities Act of 1933.”

and;

(g)           The Company will place a notation in its stock records and instruct the Company’s transfer agent to restrict the resale, pledge, hypothecation or other transfer thereof in accordance with the provisions of the legend set forth in Section 2(f) hereof.

3.  Representations, Warranties, and Acknowledgments by the Subscriber.  The Subscriber further represents, warrants, and acknowledges to the Company that the Subscriber:

(a)           has been informed of and understands the terms of the Offer; and

(b)           understands that the Subscriber is being offered the Shares solely because of the Subscriber’s status as an accredited investor; and

(c)           is aware that all Company information has been filed with the Securities and Exchange Commission on Forms 10-K and 10-Q and such current and other reports as required by the Securities Exchange Act of 1934, as amended, and represents that the Subscriber has carefully reviewed the Company’s financial statements contained in the Company’s most recent Form 10-K, as available on the SEC’s EDGAR filing system, and has relied on the information contained in such filings in connection with his or her investment decision with respect to the Shares; and

(d)           has had access to information concerning the Company, including, without limitation, the opportunity to ask questions of and receive answers from the Company concerning any and all aspects of the Offer and any other information about the Company that the Subscriber requested to review; and

  

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(e)           acknowledges that the Subscriber is knowledgeable about the Company, its business, its financial condition and its competitors and has had the opportunity to obtain such additional information about the Company as the Subscriber deems necessary in order to make an informed investment decision, including but not limited to: (i) documents, agreements, financial statements, and information regarding the Company, its results of operation and plans and prospects for the future, (ii) the corporate structure of the Company and its capitalization including information about its board of directors and officers, the rights which a shareholder of the Company has under its Articles of Incorporation and Bylaws; (iii) the dividend policy of the Company; (iv) the uses of the proceeds from the Offer; and (v) any other information about the Company that the Subscriber requested to review; and

(f)           is not purchasing the Shares in reliance on any verbal representation or warranty of the Company or its directors, officers, employees, agents, independent contractors or any other person, and acknowledges that all documents, records and books pertaining to this subscription which the Subscriber has requested have been made available to such Subscriber, and/or the Subscriber’s attorney, accountant or other representative; and

(g)           understands that the proceeds of the Offer will be used to pay currently outstanding operating expenses for the first and second quarters of 2011, including unpaid management compensation, professional fees and other administrative costs, and for general working capital of the Company to fund our general operating costs for 2011 and planned exploration activities on the Company’s mineral properties in Arizona; and

(h)           understands that the sale of the Shares is not being registered under federal and state securities laws, and that the Shares are being offered and sold under the exemptions from registration provided in Section 4(2) of the Securities Act, and Rule 506 of Regulation D promulgated thereunder, and pursuant to an exemption from registration under the securities laws of the state in which the Subscriber is principally located, and that THIS TRANSACTION HAS NOT BEEN REVIEWED OR PASSED UPON BY ANY FEDERAL OR STATE AGENCY; and

(i)           has the required degree of knowledge and experience in financial and business matters, including making investment decisions of this type, that enables the Subscriber to utilize the information made available to the Subscriber in connection with the offer of the Shares, to evaluate the risks of the prospective investment and to make an informed investment decision; and

(j)           meets one of the criteria for an accredited investor in subparagraph (1) or (2) below (indicated by the initials of the Subscriber in the appropriate blank(s)):

(1)           if the Subscriber is a natural person:

	
_________

	
(i)

	
such Subscriber has net worth as an individual or joint net worth with the Subscriber’s spouse, as of the date hereof, which exceeds $1,000,000; or

	  	  	  
	
_________

	
(ii)

	
such Subscriber had individual income in excess of $200,000 in each of the two most recent years or joint income with the Subscriber’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or

  

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_________

	
(iii)

	
such Subscriber is a director or executive officer of the Company; or

(2)           if the Subscriber is not a natural person:

	
_________

	
(i)

	
such Subscriber is a bank, insurance company, investment company (as defined in the Investment Company Act of 1940), business development company or small business investment company; or

	  	  	  
	
_________

	
(ii)

	
such Subscriber is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 administered by a bank, savings and loan association, insurance company or registered investment advisor; or

	  	  	  
	
_________

	
(iii)

	
such Subscriber is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 with total assets in excess of $5,000,000 with investment decisions made solely by persons who are accredited investors; or

	  	  	  
	
_________

	
(iv)

	
such Subscriber is a self-directed retirement plan with investment decisions made solely by persons who are accredited investors; or

	  	  	  
	
_________

	
(v)

	
such Subscriber is a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act;

	  	  	  
	
_________

	
(vi)

	
such Subscriber is a broker or dealer registered pursuant to the Securities Exchange Act of 1934;

	  	  	  
	
_________

	
(vii)

	
such Subscriber is a plan with assets in excess of $5,000,000 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;

	  	  	  
	
_________

	
(viii)

	
such Subscriber is a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; or

	  	  	  
	
_________

	
(ix)

	
such Subscriber is a non-profit organization described in Internal Revenue Code Section 501(c)(3) with total assets in excess of $5,000,000; or

	  	  	  
	
_X__JbB__

	
(x)

	
such Subscriber is a corporation, partnership or similar business trust, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000; or

  

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_________

	
(xi)

	
such Subscriber is a trust with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securities offered whose purchase is directed by a sophisticated person as described in Securities and Exchange Commission Rule 506(b)(2)(ii); or

	  	  	  
	
_________

	
(xii)

	
such Subscriber is an entity in which all of the equity owners are accredited investors as otherwise defined in subparagraphs (1) and (2) of this paragraph (j);

and

(k)           as an accredited investor, is aware that no offering memorandum or other disclosure document is being provided to the Subscriber based upon the Subscriber’s representations set forth herein; and

(l)           understands that dividends are paid if and when authorized by the board of directors of the Company and are payable only if and to the extent earnings are available, and further understands that the Company historically has not paid dividends and there can be no assurance that the board of directors of the Company will authorize the issuance of dividends in the future, and that the Company has no current plans to pay dividends in the future; and

(m)           has no reason to anticipate any change in personal circumstances, financial or otherwise, which may cause or require any sale or distribution of the Shares; and

(n)           is familiar with the nature of and risks attending an investment of this type, including the risk of losing the entire investment, and thus has determined that the purchase of the Shares is consistent with the Subscriber’s investment objectives and income prospects; and

(o)           is acquiring the Shares for purposes of long-term investment, for the account of the Subscriber, and with no present intention of reselling, distributing or otherwise transferring the Shares, or any portion of the Shares, and the Subscriber has no contract, undertaking or oral or written arrangement with any person or entity to sell or transfer all or any portion of the Shares to that person or entity, or to have that person or entity sell for him all or any portion of the Shares, or to afford or allow any participation in the Shares by any other person or entity; and

(p)           understands that the Subscriber’s ability to transfer the Shares will be restricted and that transfers of the Shares may not be made unless the transfer is not in violation of the Securities Act and applicable state securities laws (including investment suitability standards), and that the Company reserves its right to withhold consent to a transfer if, among other things, the transferee does not meet and does not represent that he or she meets the financial suitability standards required of an initial subscriber; and

(q)           understands that, because transfer of the Shares is restricted, the Subscriber may not readily liquidate this investment; and further understands that the Shares should not be purchased unless the Subscriber has liquid assets sufficient to assure that such purchase will cause no undue financial difficulties and the Subscriber can otherwise provide for current needs and possible contingencies; and further affirms that the Subscriber has sufficient liquid assets so that the purchase of the Shares will not interfere with the Subscriber’s needs or contingencies; and

  

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(r)           has subscribed for the number of Shares as set forth in Section 1 of this Subscription Agreement and has tendered the Total Subscription Price; and acknowledges that such tender is irrevocable and binding until either accepted or rejected by the Company; that the Company may reject the subscription, in whole or in part, for any reason, without liability to it; and, further, that the Company will reject the subscription if not accompanied by a fully executed and completed Subscription Agreement; and

(s)           represents that no person other than the Subscriber will have a direct or indirect interest in the Shares subscribed for hereby; and

(t)           represents that the address set forth on the signature page of this Subscription Agreement is the Subscriber’s true and correct principal address, and the Subscriber has no present intention of becoming principally located in any other state or jurisdiction; and

(u)           agrees that the Company may present this document to whatever persons it deems appropriate if the Company is called upon to establish the availability of an exemption to the registration requirements of the Securities Act and applicable state securities laws for this Offer and sale of the Shares; and

(v)           affirms that the representations made herein by the Subscriber are true, correct and complete as of the date hereof, and, if there should be any material change in these representations prior to the issuance of the Shares, the Subscriber will immediately inform the Company and furnish such revised or corrected information to the Company.

4.  Indemnification.  The Subscriber does hereby agree to indemnify and hold harmless the Company and its directors, officers, employees, agents, attorneys and independent contractors from and against any and all liabilities, damages, losses, costs, claims and expenses (including attorneys’ fees) arising under or resulting from the Subscriber’s breach of any representation or warranty made herein or from any other misrepresentation made by the Subscriber in connection with the Offer or the Subscriber’s subscription for the Shares.

5.  Miscellaneous.

(a)           This Subscription Agreement, or any interest herein, shall not be transferable or assignable by the Subscriber.

(b)           The Company reserves the right in its sole discretion to determine the validity of all subscriptions for Shares and to reject subscriptions that it deems invalid.

(c)           All notices or other communications hereunder shall be in writing and shall be hand delivered or mailed, postage prepaid, to the undersigned at the address set forth below and to the Company at the address set forth above.

(e)           This Subscription Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Nevada.

(f)           Any individual executing this Subscription Agreement for himself or herself represents and warrants to the Company that he or she is at least eighteen (18) years of age.  Any corporate Subscriber or Subscriber acting in a fiduciary capacity hereof represents and warrants to the Company that its actions in executing, delivering and carrying out the transactions contemplated by this Agreement have been duly and validly authorized.

  

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(g)           This Subscription Agreement shall inure to the benefit of and be binding upon the parties hereto and their heirs, successors, personal representatives, trustees and assigns.  If the Subscriber is more than one person or entity, the obligations of the undersigned shall be joint and several, and the representation and the indemnification obligations herein contained shall be deemed to be made by and binding upon each such person and his or her heirs, successors, personal representatives, trustees and assigns.

IN WITNESS WHEREOF, this Subscription Agreement has been executed by the Subscriber as of the date indicated next to such authorized signature.

(Signature on page following.)

  

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INTERNATIONAL STAR, INC.

Subscription Agreement Signature Page

	
  /s/ J. b. Beaird                                     

	
  4/25/11                                      

	
Authorized Signature of Subscriber

	
Date

PLEASE PRINT:

	
Exact Legal Name of Subscriber:

	
Beaird Operating Companies, LLC

	
Title (if signing as an officer or in a representative capacity)

	
Manager

	
Physical Street Address of Residence (if an Individual)

	
Suite 1112, Beaird Tower

	
or

Principal Place of Business (if an Entity)

	
Line 1 of Street Address (not a P. O. Box)

 

330 Marshall Street

	  	
Line 2 of Address

 

Shreveport                                   LA                       71101

	  	
City                                              State                         Zip

 

	
Mailing Address for Notice

(if different from above)

	  
	  	
Line 1 of Street Address or P. O. Box

 

 

	  	
Line 2 of Address

 

 

	  	
City                                              State                         Zip

 

	
Social Security Number

or Tax Identification Number

	  

ACCEPTED by the Company this 25th day of April, 2011.

INTERNATIONAL STAR, INC.

By:   /s/ Jacqulyn B. Wine                           

Name: Jacqulyn B. Wine

Title: Secretary/Treasurer

 

8westbridge_8k-ex1001.htm

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is entered into as of May 1, 2011, by and between Westbridge Research Group, a California corporation (the “Company”), and Lawrence Parker, Ph.D., an individual (“Executive”), with reference to the following facts:

 

A.   Executive currently serves as Vice President and Director of Research and Development of the Company.

 

B.    Company and Executive desire to continue the employment of Executive as Vice President and Director of Research and Development of the Company for a term of years and on certain other terms as stated herein.

 

NOW, THEREFORE, in consideration of the foregoing facts and the mutual agreements set forth below, the parties agree as follows:

 

1.   EMPLOYMENT; TERM.  Company hereby employs Executive, and Executive hereby accepts employment as Vice President and Director of Research and Development of the Company, for a period commencing May 1, 2011 and ending November 30, 2014 (the “Term of Employment”).  Executive also will serve in the same capacity for Westbridge Agricultural Products at no additional consideration.

 

2.   DUTIES.

2.1           Executive’s duties shall include the responsibilities of the Vice President and Director of Research and Development of the Company.  Executive shall report to the President of the Company. Executive shall also have the general powers and duties of management usually vested in the office of the Vice President and Director of Research and Development of a corporation and shall have such other similar powers and duties as from time to time may be prescribed by the President, the Board of Directors or the Bylaws.

2.2           Executive shall devote substantially all of his productive time and his best efforts, knowledge, and skill to the operation, promotion, and advancement of Company’s business, and to the proper and efficient discharge of his duties as described herein.  Executive further covenants and agrees that he will not, directly or indirectly, engage or participate in any activities at any time during the term of his employment in conflict with the best interest of Company.

2.3           During the term of this Agreement, Executive will not directly compete with the Company’s business, whether alone, as a partner, or as an officer, director, executive, or shareholder of any other corporation, or as a trustee, a fiduciary, or other representative of any other entity which is in direct competition with the Company.

 

  

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3.   COMPENSATION.

3.1           Salary and Benefits.  Company shall pay Executive a salary of $100,000 per annum (“Base Salary”), which shall be payable in the intervals consistent with the Company’s normal payroll schedules.  The Base Salary will be reviewed annually by the President, but in no event may the Base Salary be reduced by more than ten percent (10%) in any year without the written agreement of Executive.

3.2           Bonus.  See Exhibit “A”.

3.3           Options.  See Exhibit “B”.

3.4           Commission.  See Exhibit “C”.

3.5           Taxes. All compensation will be subject to the customary withholding tax and other employment taxes as required with respect to compensation paid by an employer to an Executive.

4.   BENEFITS.

4.1           Executive shall be entitled to normal executive medical, dental, long-term disability, and life insurance as the Company may have in place from time to time.  The Company will pay for the medical and dental insurance coverage of Executive’s dependents if such payment is in accordance with Company’s policy.

4.2           Executive shall be entitled to such vacation and personal leave time as permitted by the Company pursuant to its policies.  The timing and duration of any vacation shall be subject to the prior written notice to the Company’s President.

4.3           Executive shall be eligible to participate in and be covered by any pension, insurance, reimbursement, supplemental disability, and other plans maintained by the Company from time to time.

4.4           The Company shall pay on Executive’s behalf or reimburse Executive for reasonable expenses incurred in connection with his employment including any business travel, dues, cost of attending industry conventions, meetings, and entertainment expenses for entertainment aiding the development of the Company.  Executive agrees to submit receipts and other documentation to support the above expenses as a condition of reimbursement therefore.

4.5           If this Agreement is terminated other than by the death of Executive, Executive shall have the right to assume the key-person insurance policy that the Company has in place, if any.

4.6           During the term of this Agreement, the Company shall reimburse Executive an amount of up to $2,500 for legal expenses and other expenses incurred by Executive in his estate planning.

 

  

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5.   TERMINATION.

 

5.1           Executive may voluntarily terminate his employment upon giving to Company not less than one hundred twenty (120) days written notice of Executive’s intention to do so.

5.2           This Agreement shall terminate upon the earlier of date of death, the date when Executive becomes “completely disabled” as that term is defined in Section 6 below, the expiration of the Term of Employment, or as otherwise permitted by law.  In the event of death or disability, the Company shall continue Executive’s salary for six (6) months from the date of death or complete disability.  In the event of complete disability, the amount of salary continuation shall be reduced by the amount of any disability payments made to Executive under the Company’s insurance policy.  In addition, any stock options granted to Executive prior to death or complete disability which would normally vest during the twelve (12) months following such death or disability shall vest and may be exercised in accordance with the term of the options.

5.3           The Company may terminate this Agreement for cause during the Term of Employment by written notice given to Executive, effective immediately or any later date specified by Company, in any of the following events:

(a) conviction in a court of competent jurisdiction regarding any violation of law or regulation by Executive which affects adversely the ability of Executive to perform his duties, obligations and responsibilities herein or the good name, goodwill or reputation of Company,

(b) the failure of Executive to carry out the reasonable directions of Company’s President or Board of Directors, or

(c) for any reason specified in California Labor Code Section 2924, a copy of which is attached hereto as Exhibit “D”.

There shall be no severance pay in the event of termination for cause.

5.4           The Company may terminate the Agreement at any time without cause, with or without notice.  In such an event the Company will pay to the Executive an amount as if it were a termination for a Change in Control occurring within the first twenty four months of the Change in Control (defined hereafter) under Section 8 of this Agreement.  This amount may be paid over time in accordance with the Company’s regular payroll schedule as if Executive were still employed.  Also Executive will be entitled to receive the insurance benefits as set forth in Section 8(d).

 

 

 

 

  

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6.   DEATH OF DISABILITY DURING TERM OF EMPLOYMENT.  The term “completely disabled” as used herein shall mean the inability of the Executive to perform his duties hereunder for the reason that he has become permanently disabled within the meaning of any policy of disability income insurance covering Executives of the Company then in force.  In the event the Company has no policy of disability income insurance covering the executives of the Company in force when Executive becomes disabled, the term “completely disabled” shall mean the inability of Executive to perform his duties hereunder by reason of any incapacity, physical or mental, which the Board of Directors of the Company, based upon medical advice or opinion provided by a licensed physician acceptable to said Board of Directors of the Company, determines to have incapacitated Executive from satisfactorily performing all of his usual services for the Company during the foreseeable future, taking into account the essential functions of Executive’s position and the existence of reasonable accommodation, if any, to permit Executive to perform these duties.  The action of said Board of Directors shall be final and binding and the date such action is taken shall be the date of such complete disability for purposes of termination of this Agreement.

7.   EXECUTIVE’S DUTIES ON TERMINATION.  Upon termination of this Agreement, Executive shall deliver promptly to the Company all equipment, notebooks, property, documents, memoranda, reports, files, books, correspondence, lists, or other written or graphic records and the like, relating to the Company’s business, which are or have been in Executive’s possession or under his control.

8.   CHANGE IN CONTROL.

(a)           For purposes of the Agreement, a “Change in Control” of the Company shall mean an event or series of events of a nature that at such time (i) any “person” (as the term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as determined under Rule 13d of such Act), directly or indirectly, of voting securities of the Company representing fifty percent (50%) or more of the Company’s outstanding voting securities or right to acquire such securities, or (ii) a plan of reorganization, merger, consolidation, sale of all or substantially all of the assets of the Company or similar transaction occurs in which the Company is not the resulting entity.

(b)           If a Change in Control has occurred, Executive shall be entitled to the benefits provided in Subsections (c) and (d) below, upon Executive’s subsequent termination of regular employment within twenty-four (24) months following the Change in Control due to (i) termination of Executive’s employment (other than termination for cause as set forth in Section 5.3 of the Agreement) or (ii) Executive’s resignation following any material adverse change in or loss of title, office or significant authority or responsibility, material reduction in Base Salary or benefits (excluding bonus) or relocation of the Executive’s principal place of employment by more than twenty (20) miles from its location at the time of the Change in Control.

(c)           Upon Executive’s entitlement to benefits under Subsection (b), (i) the Company shall pay Executive, or in the event of Executive’s subsequent death or disability, Executive’s beneficiaries, estate or other representative, a sum equal to two (2) full years Base Salary, less all required and applicable withholding regardless of the remaining term under the Agreement; and (ii) any unvested stock options and related rights shall immediately vest and shall be exercisable for a period of three (3) years from the date of termination.  The amount referenced in (i) above, shall be paid in a lump sum due within ten (10) days of the date of termination or resignation.

 

 

 

 

  

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(d)           Upon the occurrence of a Change in Control followed by Executive’s termination of employment or resignation (other than termination for cause), the Company and its successors or assigns shall cause to be continued life, medical and disability coverage substantially identical to the coverage maintained by the Company for the Executive prior to Executive’s termination or resignation.  Such coverage and payment shall cease upon the expiration of twelve (12) full calendar months from the date of termination or resignation.  Nothing in this provision is intended to restrict or limit Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act, commonly known as COBRA.

(e)           In the event that any amount due hereunder constitutes an “excess parachute payment” as defined in Section 280G of the Internal Revenue Code of 1986, the Company and Executive shall meet in good faith to minimize the adverse tax consequences to Executive.

9.   CONFIDENTIALITY AGREEMENT AND FUTURE INVENTIONS.  Executive shall sign a Proprietary Information and Inventions Agreement in the form set forth in Exhibit “E”.

10.          ASSIGNMENT AND BINDING EFFECT.  This Agreement shall be binding upon and inure to the benefit of Executive and Executive’s heirs, executors, administrators and legal representatives.  Neither this Agreement nor the rights or obligations hereunder shall be assignable by Executive.  The rights and obligations hereunder shall inure to the benefit of and be binding upon the successors, assigns, and legal representatives of the Company.

11.          NOTICES.  All notices or demands of any kind required or permitted to be given by the Company or Executive hereunder shall be given in writing and shall be delivered personally (and receipted for) or mailed by certified mail, return receipt requested, postage prepaid, as follows:

	 	
If intended for the Company:

 

 

 

 

 

If intended for the Executive:  

	
Westbridge Research Group

1260 Avenida Chelsea

Vista, CA 92081-8315

Attn: President

 

 

Lawrence Parker, Ph.D.

__________________________

__________________________

 

 

Any such written notice shall be deemed received when personally delivered (and receipted for) or on the fourth (4th) day following its deposit in the United States Mail, as specified herein.  Any Party may change the address to which notice is intended for it; such change of address shall be sent by a notice to the other party given in the manner specified in this section.

 

 

 

  

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12.   CHOICE OF LAW.  This Agreement shall be construed and interpreted in accordance with the laws of the State of California.

13.   EXISTING AGREEMENT; INTEGRATION.  The existing Employment Agreement between the parties dated October 1, 2008 is hereby terminated and replaced by this Agreement. This Agreement contains the entire agreement of the parties and cannot be amended or modified except by written agreement between Executive and the Company.

14.   WAIVER.  No term or condition of this Agreement or the breach thereof shall be deemed waived, except by written consent of the Party against whom the waiver is claimed and any waiver or any condition or breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant, term or condition.

15.   SEVERABILITY.  The unenforceability, invalidity, or illegality of any provision in this Agreement shall not render any other provision in this Agreement unenforceable, invalid, or illegal.

16.   INTERPRETATION; CONSTRUCTION.  The captions of the sections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question of interpretation or construction of this Agreement.  This Agreement shall not be interpreted for or against any party on the basis that a Party drafted the Agreement or caused it to be drafted.

17.   REPRESENTATIONS AND WARRANTIES.  Executive represents and warrants that he is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that his execution and performance of this Agreement is not a violation or breach of any other agreement between Executive and any other person or entity.

18.   ARBITRATION.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof, the employment of Executive by the Company, or relating to the termination of that employment, including all claims in tort or contract, pursuant to statute or otherwise, and including any claim as to the arbitrability of any claim or controversy and any claim for rescission, shall be settled by binding arbitration before a single, neutral arbitrator in San Diego County, California by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes.  The arbitrator shall have power to interpret this Agreement, but shall have no power to alter or amend this Agreement.  The arbitrator may award his/her fees, the costs or arbitration, and attorney’s fees.  Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof; provided, however, that the Company may pursue equitable remedies, including injunctive relief, against the breach of any such term or in aid of the exercise of any power granted in this Agreement, or any combination thereof, in any court having jurisdiction thereof, without resort to arbitration.

19.   LEGAL COUNSEL.  Executive acknowledges that he has the right and opportunity to seek the advice of independent counsel of Executive’s own choosing with respect to Executive’s legal rights and obligations and the legal effect of this Agreement.  Executive further acknowledges that she has either sought or declined to seek the advice of legal counsel and that Executive has read the Agreement and is fully aware of the contents thereof and its meaning and legal effect.

 

 

  

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

 

 

	

The Company:                                                                            

 

Westbridge Research Group,

a California corporation     

                                                                      

By: /s/ Christine Koenemann                                    

     Christine Koenemann, President

	

Executive:

 

 

 

/s/ Lawrence Parker                                   

Lawrence Parker, Ph.D.

 

 

 

  

7

  

EXHIBIT “A”

 

BONUS

Executive’s portion of any Board approved employee bonus pool, if any, is to be determined by the Company’s President at the President’s sole discretion.

 

  

  

  

 

EXHIBIT “B”

 

OPTIONS

 

None

  

  

  

EXHIBIT “C”

 

COMMISSIONS

Executive’s commissions rates and terms to be reviewed and approved annually by the Company’s President.

 

 

 

 

  

  

  

EXHIBIT “D”

 

California Labor Code Section 2924 - Employment for Specified Term; Grounds for Termination by Employer

An employment for a specified term may be terminated at any time by the employer in case of any willful breach of duty by the Executive in the course of his employment, or in case of his habitual neglect of his duty or continued incapacity to perform it.

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