Document:

metcalfrevised.htm

Employment Agreement

This Employment Agreement (the “Agreement”) dated May 1, 2011 (the “Effective Date”) is between Voice Assist Inc., a Nevada public company having its principal place of business at Suite 100, 2 South Point Dr. Lake Forest, CA 92630 (the “Company”), and Michael Metcalf, an individual currently residing in the City of MissionViejo, CA (the “Employee”).

Background

The Company and Employee desire that The Company employ Employee as its Chief Executive Officer (CEO).  Accordingly, the parties agree as follows.

Agreement

1.  EMPLOYMENT.  The Company hereby agrees to employ Employee and Employee hereby accepts such employment, upon the terms and conditions hereinafter set forth.

2.  TERM.  For purposes of this Agreement, “Term” shall commence on the Effective Date and continue until terminated by either party in accordance with Section 5 this Agreement.

2.  COMPENSATION.  Effective April 15, 2011:

a.  Salary.   The Company shall pay Employee a base annual salary of Eleven Thousand, Seven Hundred Fifty Dollars ($11,750) per month gross less taxes as required by law, payable in accordance with the Company’s normal policies but in no event less often than semi-monthly (the “Salary”).  Effective January 01 for each successive year this Agreement is in effect, compensation shall be adjusted, if at all, as determined by the Board of Directors of the Company.  In addition, the Company shall increase Employee’s Salary as follows:

i.  If the Company achieves annual revenues of greater than $3,000,000, then Employee’s Salary shall increase to Fifteen Thousand Dollars ($15,000) per month;

ii.  If the Company achieves annual revenues of $5,000,000, then Employee’s Salary shall increase to Sixteen Thousand, Six Hundred and Sixty-Seven  Dollars ($16,667) per month; and

iii.  If the Company achieves annual revenues of greater than $8,000,000, then Employee’s Salary shall increase to Twenty Thousand Dollars ($20,000) per month.

b.  Incentive Compensation. The Company shall also pay to Employee incentive compensation in accordance with Addendum A, Employee Incentive Compensation Plan, attached hereto and made a part hereof by this reference.

c.  Incentive Stock Options. The Company and Employee hereby amend certain provisions of the Stock Option Grant issued to Employee on January 26, 2011 with vesting beginning on October 1, 2010, as set forth in that Stock Option Grant Amendment between the Company and the Employer executed as of the Effective Date.

  

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3.  EMPLOYEE BENEFITS.  The Company and Employee agree as follows:

a.  General Benefits.  Employee shall be entitled to participate in the Company’s health insurance plan and such other health or welfare benefit plans as the Company may adopt in the same manner as other members of the Company’s senior management team.  Employee acknowledges that the level of awards or other participation in certain of such plans is subject to the discretion of the Company.

b.  Business Expenses. In performing Employee’s duties and obligations under this Agreement,  the Company shall reimburse Employee for such expenses on a monthly basis, upon submission by Employee of appropriate receipts, vouchers or other documents, all in accordance with the Company’s expense reimbursement policy. Company shall provide a car allowance of $750 per month.

c.  Vacation.  Employee shall be entitled during each calendar year during the Term of this Agreement to a vacation of four (4) weeks (pro-rated for any partial year) during which time Employee’s compensation will be paid in full, on such dates as the Employee and CEO of the Company shall mutually agree.  No more than two (2) weeks of unused vacation time can be carried over to a subsequent calendar year.

4.  DUTIES/SERVICE

a.  Position.   Employee is employed as CEO and shall perform such services and duties as are defined in Addendum B, Job Description, attached hereto, and as are normally associated with such position, subject to the direction and supervision of the Board of Directors of the Company.

b.  Place of Employment. The place of Employee’s employment and the performance of Employee’s duties will be at the Company’s corporate headquarters or at such location as mutually agreed upon by the Company and Employee.

c.  Extent of Services.  Employee shall at all times and to the best of his ability perform his duties and obligations under this Agreement in a reasonable manner consistent with the interests of the Company.

Except as otherwise agreed by the Company and Employee in writing per Schedule C and addendums to Schedule C, it is expressly understood and agreed that Employee’s employment is fulltime.  Employee may not be employed by other entities or otherwise perform duties and undertakings on behalf of others or for his own interest that have an impact on his performance of  obligations under this Agreement, unless pre-approved by the Board of Directors.  Additionally, the Company recognizes that Employee has, or may have in the future, non-passive equity positions in other companies that do not detract from Employee’s time from meeting his obligations under this Agreement.

5.  TERMINATION.  The Term of this Agreement shall end upon written notice by either party in accordance with the terms of Section 5 of this Agreement.

a.  By the Company.  The Company may terminate this Agreement as follows:

  

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i.  Without Cause.  The Company may terminate this Agreement with 14 days prior written notice at any time without Cause.

ii.  With Cause.  The Company may terminate this Agreement at any time with Cause.

iii.  As used in this Agreement, the term Cause shall mean. (A) a material breach of by Employee of his Non-Disclosure and Intellectual Property Assignment Agreement (B) a material breach of any written agreement between Employee and the Company that might be established by mutual agreement that remains uncured after written notice of breach from the Company, (C) Employee’s  continued failure to comply with the Company’s written policies or rules following written notice of non-compliance by the Company, (D) Employee’s conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof, or (E) Employee’s gross negligence or willful misconduct.

b.       By Employee.

i.  Without Good Reason.  Employee may terminate this Agreement at any time upon 14 days’ prior written notice to the Company.

ii.  With Good Reason.  Employee may terminate this Agreement at any time for Good Reason.

iii.  As used in this Agreement, the term Good Reason shall mean a reduction by the Company in your base salary, amount of bonus eligibility or participation in benefit plans that is not part of a compensation reduction applicable to the entire executive team.  In the situation described above, Employee may terminate this Agreement for Good Reason only after notifying the Company of the specific action taken that Employee believes constitutes Good Reason, and the failure of the Company to promptly correct such action.

c.  Liquidity Event.  If a Liquidity Event occurs for the Company, and if Employee is terminated without Cause or terminates for Good Reason as defined above, within 90 days before such Liquidity Event, then (a) notwithstanding any other provision of Employee’s Stock Option Agreement(s) to the contrary, all unvested options held by Employee shall become immediately vested and exercisable.  In addition, if Employee is terminated without Cause or terminates for Good Reason as defined above,  either (x) within 90 days before such Liquidity Event or (y) at any time following such Liquidity Event, then Employee shall receive severance compensation consisting of  (3) years of Salary (in the amount of $240,000) paid in accordance with the Company’s then current payroll practices, and continuation of all health and welfare benefits for Three (3) years.  The term “Liquidity Event” shall mean the acquisition of the Company, whether by stock purchase, asset purchase, merger or otherwise, the result of which causes the shareholders to receive either cash or publicly-traded equity securities of a company with a market capitalization that would qualify the company for listing on either the New York Stock Exchange or the NASDAQ Stock Market. 

6.  NON-DISCLOSURE AND INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT.   Employee’s employment is subject to the requirement that Employee sign, observe and agree to be bound, both during and after Employee’s employment, by the provisions of the Company’s Non-

  

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Disclosure and Invention and Copyright Assignment Agreement, exceptions to which are in Addendum D, which is being executed by the parties as of the Effective Date.

7.  RETURN OF THE COMPANY PROPERTY.  Employee agrees that upon any termination of his employment, Employee shall return to the Company within a reasonable time not to exceed two (2) weeks, any of the Company’s property in his possession or under his control, including but not limited to, computer/office automation equipment, records and names, addresses, and other information with regard to customers or potential customers of the Company with whom Employee has had contact or done business.

8.  NOTICES.  All notices, required and demands and other communications hereunder must be in writing and shall be deemed to have been duly given when personally delivered or when placed in the United States Mail and forwarded by Registered or Certified Mail, Return Receipt Requested, postage prepaid, when forwarded via reputable overnight carrier, addressed to the party to whom such notices is being given at the following address, or by facsimile or electronic mail, with acknowledgement of receipt by the receiving party by the same means of transmission, to the addresses set forth in the preamble, subject to changes made by either party in accordance with this Paragraph 9.

9.  MISCELLANEOUS.

a. Entire Agreement.  This Agreement the Addendums hereto and the separate Option Grant Agreement and Employee Invention Assignment and Confidentiality Agreement contain the entire agreement of the Parties and supersedes and terminates that prior Employment Agreement dated December 1, 2010 between the Company and Employee.  This Agreement may not be altered, amended or modified except in writing duly executed by both of the Parties

b.           Assignment.  Neither party, without the written consent of the other party, can assign this Agreement.  Notwithstanding the foregoing, the Company may assign this Agreement to an entity that acquires the business of the Company, whether by asset purchase, stock purchase, merger or otherwise, subject to the assumption of this Agreement by the acquiring entity.

c.           Binding.  This Agreement shall be binding upon and inure to the benefit of the Parties, their personal representative, successors and assigns and in the event of any subsequent merger, consolidation, or similar transaction by the Company, all rights of Employee shall continue and remain enforceable, at Employee’s election against any said successor or assign.

d.           No Waiver.  The waiver of the breach of any covenant or condition herein shall in no way operate as a continuing or permanent waiver of the same or similar covenant or condition.

e.           Severability.  If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue in full force without being impaired or invalidated in any way.  The Parties hereto agree to replace any invalid provision with a valid provision which most closely approximates the intent of the invalid provision.

f.           Interpretation.  This Agreement shall not be construed more strongly against any party hereto regardless of which party may have been more responsible for the preparation of Agreement.

  

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g.           Governing Law. This Agreement shall be governed by and construed under the laws of the State of California, without reference to the choice of law principles thereof.

h.           Arbitration.  Any dispute or claim arising to or in any way related to this Agreement shall be settled by binding arbitration in Lake Forest, California, but any dispute or controversy arising out of or interpreting this Agreement shall be settled in accordance with the laws of the State of California as if this Agreement were executed and all actions were performed hereunder within the State of California.  All arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association ("AAA").  AAA shall designate an arbitrator from an approved list of arbitrators following both Parties' review and deletion of those arbitrators on the approved list having a conflict of interest with either party.  Each party shall pay its own expenses associated with such arbitration and except for the Company’s obligations under the Securities Exchange Act of 1934, the Parties agree to keep all such matters confidential.  A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter has arisen and in no event shall such demand be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statutes of limitations.  The decision of the arbitrators shall be rendered within 60 days of submission of any claim or dispute, shall be in writing and mailed to all the Parties included in the arbitration.  The decision of the arbitrator shall be binding upon the Parties and judgment in accordance with that decision may be entered in any court having jurisdiction thereof.

The only claims or disputes excluded from binding arbitration under this Agreement are the following. any claim by Employee for workers’ compensation benefits or for benefits under an the Company plan that provides its own arbitration procedure; and any claim by either party for equitable relief, including but not limited to, a temporary restraining order, preliminary injunction or permanent injunction against the other party.

i.  Titles.  Titles to the sections of this Agreement are solely for the convenience of the Parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement.

j.  Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but together which shall constitute one and the same instrument.

[signature page follows]

  

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Authorized representatives of the Parties have executed this Agreement as of the day and year first written above.

The Company.                           VOICE ASSIST INC.,

a Nevada corporation

By. _/s/ Scott Fox_________________________

(signature)

Scott Fox

Independent Member of the Board of Directors

Employee.

__/s/ Michael Metcalf________________________

Michael D. Metcalf

  

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ADDENDUM A

EMPLOYEE INCENTIVE COMPENSATION PLAN

1.  Employee Incentive Bonus.  Employee shall be entitled to a quarterly bonus in accordance with the Company’s incentive compensation plan, up to a maximum value of $45,000 per quarter.  The Company’s incentive compensation plan shall require approval by the Board of Directors.

2.  To be eligible for the bonus payment, the Employee must be employed on the last day of the quarter.  If the Employee is terminated or resigns for any reason after the end of such quarter, and before payment of the bonus, the Employee shall still be entitled to the bonus payment when paid to other participants in the Company’s incentive compensation plan.

3.  Until the Company achieves annual revenues of $8MM in a fiscal year, the Company shall pay all incentive bonuses in restricted grants of the Company’s common stock, whose price shall be the same price as the fair market value determined by the Board for the issuance of options to purchase the Company’s stock for such calendar quarter.

  

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ADDENDUM B

JOB DESCRIPTION [ To be completed b]

Job Title.                      CEO

Department.                      Executive

Reports To.                      Board of Directors

 

 

SUMMARY

The Chief Executive Officer (“CEO”) has primary responsibility for planning, organizing, staffing, and operating Voice Assist, Inc. and its subsidiaries and affiliates (“Voice Assist”) toward its primary objectives, based on profit and return on capital, and is accountable to the Board of Directors for the results of performance of all employees.

The CEO is accountable for all corporate legal and fiduciary activities.

 

 

The CEO establishes and communicates the management style, corporate culture, business philosophy and ethical values by which Voice Assist will operate.

The CEO manages and directs Voice Assist by performing the following duties personally or through subordinate managers.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned

.

Plans the overall business strategy and goals of Voice Assist that will assure a defined rate of return on stockholder investment and establishes objectives for each function to meet those goals, with the cooperation of the Board of Directors.

Plans, coordinates, and controls the daily operation of Voice Assist through Voice Assist’s managers.  Prepares and presents an annual business plan and budget, for Voice Assist’s operations, to the Board of Directors.

Establishes current and long range goals, objectives, plans and policies, subject to approval by the Board of Directors.

Determines the appropriate organization structure and staffing responsibilities required to meet Voice Assist’s objectives.  Dispenses advice, guidance, direction, and authorization to carry out major plans, standards and procedures, consistent with established policies and Board approval.

Meets with Voice Assist’s executives to ensure that operations are being executed in accordance with Voice Assist ’s policies.

Oversees the adequacy and soundness of Voice Assist’s financial structure.

Reviews operating results of Voice Assist, compares them to established objectives, and takes steps to ensure that appropriate measures are taken to correct unsatisfactory results.

  

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Plans and directs all investigations and negotiations pertaining to mergers, joint ventures, the acquisition of businesses, or the sale of major assets with approval of the Board of Directors.

Establishes and maintains an effective system of communications throughout Voice Assist.

Fulfills responsibility to the Board of Directors to inform or seek approval for significant matters such as financing, capital expenditures, and appointment of officers.

Ensures that Voice Assist business transactions are conducted in accordance with prevailing legal and regulatory requirements.

Reviews and determines approval of all recommendations for compensation of officers, managers and employees.

Presides over stockholders meetings.

Represents Voice Assist with major customers, shareholders, the financial community, Security and Exchange Commission and the public.

Plans and develops industrial, labor, and public relations policies designed to improve company's image and relations with customers, employees, stockholders, and public.

Evaluates performance of executives for compliance with established policies and objectives of firm and contributions in attaining objectives.

Any other job, duty or task reasonably assigned from time to time by the Board of Directors of Voice Assist, acting reasonably

  

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ADDENDUM C

Approved Non-Voice Assist, Inc.

Business Activity Exemptions

Description of Business Activity:

Any and all work related Sound Management Services LLC

Any any all work related to Coastland Christian Bible College, Safe Harbor International or other 501C3 endeavors.

 

  

  

10paulsonagreement.htm

May 26, 2011

Michael Metcalf

Voice Assist, Inc.

CEO & Chairman

2 South Pointe, Ste. 100

Lake Forest, CA  92630

Re: Proposed Private Placement of Securities

Dear Mr. Metcalf:

This is to confirm the understanding and agreement between Paulson Investment Company, Inc. (referred to herein as “we”, “us” or “our” and the like) and Voice Assist, Inc. (referred to herein as “you”, “your” and the like), as follows:

1.           Engagement.  We will serve as your  placement agent to place, on a best-efforts basis, in connection with a private placement of a minimum of $1,000,000 and up to a maximum of $2,000,000 of aggregate number of  the units (the “Units”) as more fully described and on the terms and conditions set forth in the Term Sheet attached hereto and made a part hereof (the “Placement”) in a transaction intended to qualify from the safe harbor exemption to the registration requirements of the Securities Act of 1933, as amended, pursuant to Regulation D promulgated thereunder (the “Placement”).  As such, the Units will be offered exclusively to persons who qualify as “accredited investors”, as such term is defined in Rule 501(a) promulgated under the Act.

2.           Services.  As Placement Agent, we will provide the following services to you in connection with the Placement: (i) advise you as to valuation, pricing, structure and strategy; (ii) represent you in any negotiations with investors; (iii) identify persons who are accredited investors who may have an interest in the Placement; and (iv) all other services directly related to the Placement as reasonably requested by you.

In order for us to advise you effectively it is necessary that you make available to us all pertinent information that we reasonably request in connection with the performance of our services hereunder, including information concerning your business, assets, operations and financial condition. You agree that we may rely upon the accuracy and completeness of information that you provide to us without independent verification and further, that we are authorized to make appropriate use of such information.

3.           Right to Retain Subagents.  We shall have the right in our sole discretion to retain one or more FINRA-registered investment banking firms to serve as subagents in connection with the Placement. Any compensation payable to subagents, if any, shall be our responsibility.

  

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4.           Term. The term of our engagement hereunder will extend from the date hereof and shall be terminated on the close of business (Pacific Time) on July 31, 2011, unless extended for up to

two months by mutual agreement. Any obligation for our fees or expense reimbursement earned prior to termination under this agreement will survive any such termination.

5.           Fees and Expenses.  You agree to pay us a cash placement agent fee equal to 10% of the aggregate funds raised in the Placement and five-year placement agent warrants for 10% of the aggregate funds raised in the Placement.  Such compensation shall be payable at each closing in proportion to the aggregate funds raised at such closing.  In addition, up front, upon signing this letter, you agree to pay us an expense allowance in an amount equal to $5,000 to cover our legal and other expenses.  We will also receive an additional $10,000 upon the first closing of our escrow account for the remainder of our expense allowance. If the Placement is not consummated for any reason, we will be entitled, upon a presentation of a written accounting therefore in reasonable detail (but without the need to include the underlying statements or evidence of payment), to prompt reimbursement of our actual, reasonable, out-of-pocket expenses related to the Placement, including but not limited to fees and expenses of our legal counsel up to a maximum amount of $15,000 (less the amount of the expense allowance which you have advanced hereunder).

6.           Indemnification.  You agree to indemnify and hold us and our subagents (collectively, for purposes of this Section 6, the “Placement Agents”, which term includes our and their respective  directors, controlling persons (as such term is defined under the Securities Act of 1933), officers, employees and agents) harmless against and from all losses, claims, damages or liabilities, and all actions, claims, proceedings and investigations in respect thereof, arising out of or in connection with this engagement or the Placement Agents’ services rendered in connection with this engagement, and to reimburse the Placement Agents for all reasonable legal and other out-of-pocket expenses as incurred by the Placement Agents in connection with investigating, preparing or defending any such action, claim, proceeding or investigation; provided, however, you shall not be so liable to the extent that any such loss, claim, damage or liability is finally judicially determined to have resulted primarily and directly from the Placement Agents’ gross negligence or willful misconduct.

If for any reason the foregoing indemnification or reimbursement is unavailable to the Placement Agents or insufficient to hold it harmless (except by reason of the Placement Agents’ gross negligence or willful misconduct), then you shall contribute to the amount paid or payable by the Placement Agents as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative benefits received by them on the one hand and the Placement Agents, on the other hand, the relative fault of the parties and any relevant equitable considerations; provided that, in no event, will the aggregate contribution of the Placement Agents hereunder exceed the amount of cash fees that were actually received by us pursuant to this agreement.

  

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           Your reimbursement, indemnity and contribution obligations under this Agreement shall be in addition to any liability that you may otherwise have, shall survive any termination of this

Agreement and shall be binding upon and extend to the benefit of any your successors, assigns, heirs and personal representatives.

We agree to indemnify you and hold you and your officers, directors, employees and controlling persons (as such term is defined under the Securities Act of 1933), harmless against and from all losses, claims, damages or liabilities, and all actions, claims, proceedings and investigations  in respect thereof, arising out of or in connection with any action or omission by any Placement Agent in connection with this engagement, and to reimburse you for all reasonable legal and other out-of-pocket expenses as incurred by you in connection with investigating, preparing or defending any such action, claim, proceeding or investigation; provided, however, we shall not be so liable unless such loss, claim, damage or liability is finally

judicially determined to have resulted primarily and directly from such Placement Agent’s gross negligence or willful misconduct.

Our reimbursement, indemnity and contribution Obligations hereunder shall be in addition to any liability that we may otherwise have, shall survive any termination

of this agreement and shall be binding upon and extend to the benefit of any of our successors, assigns, heirs and personal representatives.

7.           Right of First Refusal. The Company will give us the right of first refusal for any future financings (public or private) commencing on the first escrow closing for this private placement.  We will have 30 days to respond as to whether we accept or waive this right.  This right of first refusal will expire five years after the first escrow closing of this private placement.

8.           Our Duty. You acknowledge and agree that we are being engaged hereunder solely to provide the services described above to you, and that we are not acting as a fiduciary of, and shall have no duties or liabilities to, your equity holders or any other third party in connection with our engagement hereunder, all of which are hereby expressly waived.

 

 

9.           Miscellaneous. This Agreement may not be modified except in writing.  This agreement represents the entire understanding between you and us as to the subject matter hereof, and all prior discussions and negotiations are merged into them.  This agreement shall be governed by and construed in accordance with the laws of the State of Oregon.  In the event that any dispute among the parties to this agreement should result in arbitration or litigation, the prevailing party shall be entitled to recover from the non-prevailing party all of its related fees, costs and expenses, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

  

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If this letter correctly sets forth the understanding between us, please so indicate by signing on the designated space below and returning a signed copy to us, whereupon this letter shall constitute the agreement between us.

 

Sincerely,

 

 

PAULSON INVESTMENT COMPANY, INC.

By:           /S/ Lorraine Maxfield                                                                                                        

Title:           Senior VP, Corporate Finance                                                                                     

Agreed and accepted this 26th day of May, 2011

VOICE ASSIST, INC.

By:           /S/ Michael Metcalf                                                                                              

Title:           CEO                                                                                    

  

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