Document:

Exhibit 10.5

AGREEMENT

This
Agreement dated as of June 16, 2006 by and between Surfect Technologies Inc a
Delaware corporation (the “Company”), and Mark Groussman, Barry Honig, and RB
& AJ Associated Holdings, Inc., a California Corporation, Robert B. Prag,
CEO (“Consultants”).

WITNESSETH

WHEREAS,
Consultants have developed relations with various financial institutions and
organizations and has certain expertise in consulting with companies interested
in obtaining financing through public capital markets and private investments
in public company (“PIPE”) transactions; and

WHEREAS,
the Company is seeking advice in structuring a transaction in order to (i)
attract investment capital in an amount of at least $2,500,000 and (ii) achieve
an OTC bulletin board listing pursuant to a reverse merger (the “Merger”) with
a public company whose capital stock trades on the OTC Bulletin Board (an “OTC
Company”) (the transactions described in (i) and (ii) hereof shall be
collectively referred to as the “Transaction”).

NOW THEREFORE,
for and in consideration of the mutual covenants contained herein, the parties
agree as follows:

1.             Term of Agreement. The term
of this Agreement shall be sixty (60) days from execution of this Agreement,
unless extended by mutual agreement of the parties as provided herein (the “Term”),
or earlier terminated upon closing and satisfaction of all obligations of
Company to Consultants hereunder.

2.             Duties of Consultants; Structure
of Transaction.

(a)  Consultants agree to consult with the Company
during the Term regarding a possible Transaction. Consultants shall be
authorized to introduce parties and OTC Companies which are prospective merger
candidates to the Company but the Company shall be responsible to negotiate
term sheets, definitive agreements, and perform customary due diligence.
Company agrees that during the Term it shall not engage any consultant or
advisor with respect to a Transaction. Consultants engagement shall be
exclusive, however Company acknowledges Consultants’ shall be entitled to
provide similar services to other parties.

(b)  Consultants agree to consult with the Company
to structure a transaction which results in a post-transaction capital
structure substantially as set forth on Exhibit A. The
closing (the “Closing”) shall be held upon the occurrence of (i) delivery into
escrow of at least $2,500,000 (the “Escrow Deposit”) from qualified subscribers
acceptable to the Company in connection with a PIPE transaction with terms
described on Exhibit A and (ii) consummation

 

of a Merger between the Company and an OTC Company in which the OTC
Company shall be the surviving entity (the “Surviving OTC Company”). Following
the Closing, the Company’s existing stockholders shall become stockholders of
the Surviving OTC Company. The OTC Company shall be acquired without additional
cost to the Company other than as set forth herein.

(c)  Upon the Closing, the Consultants’ shall be
issued 1,250,000 shares of the Common Stock (the “Consultant’s Common Stock”)
of the OTC Company, based upon the capitalization set forth on Exhibit A. The Consultants shall be entitled to designate
assignees or purchasers for the Consultant’s Common Stock issued in accordance
with this paragraph (c).

3.             Terms
and Conditions of Transaction; Covenants of the Company.

(a)  The terms and conditions of any Transaction
must be acceptable to the Company.

(b)  There is no relationship of partnership,
agency, employment, or joint venture between the parties. No party has the
authority to bind the other or incur any obligation on its behalf. Consultants,
in all respects, shall be independent contractors of the Company. The Company
grants Consultants no authority to enter into any agreement, understanding or
commitment on behalf of the Company or to negotiate any contracts or terms
relating to investment in the Company as to which the Company would be bound.

(c)  The Company shall retain the services of an
independent PCAOB certified accounting firm that shall be responsible for
auditing the Company’s financial records. Such accounting firm shall be
reasonably acceptable to the Consultants. Company’s audited financial
statements shall be available for a Transaction within 45 days following the
date hereof.

4.             No
Shop Provisions.

(a)  In consideration of the time and resources
that will be required for Consultants to find contacts and otherwise perform
its duties, the Company agrees that, during the Term (the “Exclusivity
Period”), neither the Company nor any of its affiliates, employees,
directors or Consultants (collectively, “Representatives”) will,
directly or indirectly, solicit, encourage, or enter into discussions,
agreements, or transactions with, or provide any information to, any
individual, corporation, partnership, or other entity or group (other than
contacts approved by Consultants) concerning any private placement, investment,
merger, spin-off, sale of assets or any similar transaction or alternative to a
private placement transaction involving the Company (other than financing
substantially in accordance with past practices which constitutes working
capital). The Company shall promptly notify Consultants in the event that any
proposal, offer, contract or inquiry with respect to another potential
transaction is made by a third

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party. Notwithstanding the above, the Company may engage in discussions
regarding post-Closing financing.

(b)  Additionally, the Company acknowledges and
agrees that, during the Term, and for a period of twelve (12) months
thereafter, neither the Company nor any of its representatives shall contact,
engage or do any business with any of the contacts that Consultants introduce
to Company, other than as provided herein.

(c)  The Company acknowledges that any remedy at
law for breach of any of the covenants contained in this Agreement would be
inadequate and any person entitled to payment shall be entitled to injunctive
relief in the event of any such breach. In addition, The Company shall
reimburse Consultants for any legal fees incurred in seeking such remedy.

5.             Expenses.

(a)  Consultants shall be responsible for all
expenses that Consultants incurs in performing its duties pursuant to this
Agreement unless otherwise approved in advance by the Company.

(b)  Consultants or their designees shall be
responsible for the costs and expenses (the “Acquisition Costs”) incurred in
connection with the acquisition of the Consultant’s Common Stock acquired
pursuant to Paragraph 2(c) upon the closing of the Transaction. If the Company
does not close a Transaction (which closing will be at Company’s sole
discretion) after (i) the Escrow Deposit shall have been made and (ii) the
Consultant’s shall have made a deposit with the Company covering the
Acquisition Cost, the Company shall reimburse Consultants for the Acquisition
Costs or settlement cost for unwinding the acquisition transaction, whichever
is greater.

6.             Miscellaneous.

(a)  The Company shall be under no obligation to
pay any fee, monies or other consideration whatsoever to Consultants under the
terms of this Agreement except as provided herein.

(b)  The Company, in the event that any placement
agent or underwriter is employed in connection with any aspect of the
Transaction, understands that a separate placement agent fee may be required to
be paid that would be separately negotiated with such party and, if required,
is estimated to require payment of a 6% commission on sales of securities by
such party.

(c)  The illegality or enforceability of any
provision of this Agreement does not affect the legality or enforceability of
any other provision or portion. If any provision or portion of this Agreement
is deemed illegal or unenforceable for any reason, there shall be deemed to be
made such minimum

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change in such provision or portion as is necessary to
make it valid and enforceable as so modified.

(d)  This Agreement may not be assigned by the
Company without the prior written consent of Consultants. The terms of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties hereto.

(e)  No modification of this Agreement shall be
effective unless in writing by both parties.

(f)  All parties hereto have been represented by
counsel, and no inference shall be drawn in favor of or against any party by
virtue of the fact that such party’s counsel was or was not the principal
draftsman of this Agreement.

(h)  This Agreement shall be governed by and
construed under the laws of the State of New Mexico without regard for
conflicts of laws principles

7.             Disclaimer. It is understood that Consultants are
not acting in capacity of licensed securities or real estate broker or dealer,
and shall have no authority to enter into any commitments on the Company’s
behalf, or to negotiate the terms of financing which responsibility shall be of
the Company, or to hold any funds or securities in connection with financing or
to perform any act which would require Consultants to become licensed as a
securities or real estate broker or dealer or perform in accordance with such licensure.
It is further acknowledged that Consultants are not acting as part of any “group”
as such term is defined under the Securities Exchange Act of 1934, as amended,
and neither Consultants nor any third-party who may acquire Common Stock shall
be claimed by the Company to be acting in concert with respect to such Common
Stock, nor shall Consultants (or such persons) be claimed by the Company to be
an “affiliate” of the Company.

8.             Entire Agreement. This Agreement contains the
entire agreement between Consultants and the Company concerning the subject
matter hereof and supercedes all prior agreements, representations and promises
by either party or between the parties, and correctly sets forth the rights and
duties of each of the parties to each other concerning that matter as of this
date. Any agreement or representation concerning the subject matter of this
Agreement or the duties of Consultants to the Company in relation thereto, not
set forth in this Agreement, shall be null and void. The terms and provisions
of Section 2, 4, 5, 6, 7 and 8 shall survive the termination of this Agreement
on the terms set forth herein.

IN WITNESS WHEREOF, the
parties intending to be legally bound have caused this Agreement to he executed
by their duly authorized representatives as of the date first above written.

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  Consultants:

  
	
   

  
	
  Mark Groussman

  
	
   

  
	
   

  	
   

  	
  Barry Honig

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RB & AJ Associated Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Mark Groussman

  	
  6/16/06

  	
   

  
	
   

  	
   

  	
  Name: Mark Groussman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Steve Anderson

  	
  6-16-06

  	
   

  	
   

  	
  By:

  	
  /s/ Barry Honig

  	
  June 16, 06

  	
   

  
	
  Name: Steve Anderson

  	
   

  	
  Name: Barry Honig

  
	
  Title: Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert B. Prag 

  	
  6-16-06

  	
   

  
	
   

  	
   

  	
  Name: Robert B. Prag, CEO

  
	
   

  	
   

  	
  RB & AJ
  Associated Holdings, Inc.

  
									

 

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EXHIBIT A

Closing Capitalization

	
  Current
  Shareholders (including option pool):

  	
   

  	
  5,750,000

  
	
   

  	
   

  	
   

  
	
  PIPE Investors

  	
   

  	
  1,250,000 ($2.00/Share)

  
	
   

  	
   

  	
   

  
	
  PubCo
  (Consultants)

  	
   

  	
  1,250,000 Shares

  
	
   

  	
   

  	
   

  
	
  Total Shares
  Outstanding

  	
   

  	
  8,250,000 Shares

  
	
   

  	
   

  	
   

  
	
  PIPE Warrants

  	
   

  	
  625,000 ($3.00/Shares)

  

 

 6Exhibit
10.6

SEPARATION
AGREEMENT AND RELEASE

This
SEPARATION AGREEMENT AND RELEASE (“Agreement”) is entered into this 18th day of August, 2005 (the “Effective Date”),
between Surfect Technologies, Inc., together with each of its parents,
subsidiaries, affiliates, directors, officers, and agents (collectively the “Employer”)
on the one hand, and Thomas Griego (“Employee”) on the other hand. The
Employer and Employee are jointly referred to as the “Parties.”

WHEREAS,
the Employee has been employed by the Employer and held the position of CEO and
President previously and Chief Technology Officer since May 13, 2005; and

WHEREAS,
the Parties have mutually agreed to terminate their employment relationship
(the “Separation”); and

WHEREAS,
the Parties desire to enter into this Agreement in order to set forth their
respective rights and obligations in connection with the Separation.

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

1.             Separation. Employee’s
voluntarily resignation is effective on the close of business on June 6, 2005
(the “Separation Date”). Employer agrees that, following the Separation Date
and consistent with Employer’s policies and practices, Employee will be paid
any accrued and unused paid vacation, sick or other leave time.

2.             No Additional Compensation.
Except as set forth herein, Employee agrees that Employee is not entitled to any
other salary, bonus, severance, stock options, reimbursement, benefit,
interests or opportunities from the Employer. Employee further agrees that the
benefits and monetary payments described herein are not required by the
Employer’s policies and procedures and that such benefits and payments are in
addition to anything of value to which Employee may have been eligible to
receive by virtue of his employment and the termination of his employment with
the Employer.

3.             Consideration.

3.1           Consulting Agreement. In
partial consideration for Employee’s execution and delivery of this Agreement,
Employer agrees to enter into a consulting agreement with Employee for a fixed
period of time. The duration of the consulting agreement is for two (2)
consecutive months and the corresponding compensation will be paid in advance.

3.2            Stock Options. Pursuant to an
Incentive Stock Option Agreement between Employer and Employee (the “Option
Agreement”) entered into pursuant to the Surfect Technologies, Inc. Incentive
Stock Option Plan (the “Option Plan”), Employee has accrued a vested option to
purchase 950,000 shares (700,000 under option agreement issued December 2001
and 250,000 under option agreement issued July 2004) of Employer’s common stock
at an exercise price of $.022/share as of June 1, 2005. In consideration for
Employee’s execution and delivery of this Agreement, Employer agrees to allow
Employee to continue to vest per the terms of the original option agreements.
The parties hereto agree that there shall be no amendment of

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the Surfect Technologies,
Inc Incentive Stock Option Agreement dated December 17, 2001 by and between
Employer and Employee without Employee’s written consent.

3.3           Benefits. The Employer
additionally agrees to pay Employee’s COBRA Coverage for the month of June 2005
plus eighteen (18) additional months through December 31, 2006.

3.4           Severance Pay. Employer shall
pay to Employee one months’ severance pay in the amount of $14,583.00.

3.5           Debt Forgiveness.  Employer shall forgive those amounts owed to Employer
by Employee as set forth on Exhibit “A” hereto in partial consideration for
Employee’s execution and delivery of this Agreement.

3.6           GET Systems Premises. As
partial consideration for the execution of this Agreement, Employer shall
provide to Employee or Employee’s assign Griego Electrochemical Technologies,
Inc., a New Mexico corporation (“GET”), lab and work space at Employer’s
location (the “Surfect Space”) without rent or other charge through December
31, 2005. Usage of the Surfect Space shall be restricted to normal business
hours between Monday and Friday, and Employee must seek pre-approval from Steve
Anderson prior to entering the Surfect Space. Beginning January 1, 2006,
Employee’s privileges under this Section 3.6 shall automatically cease, and
continue only upon mutual agreement of the Parties.

3.7           E-mail As partial
consideration for the execution hereof and the agreements contained herein,
Employer will provide to Employee a secure e-mail address so long as Employee
serves as a director of Employer.

4.             COBRA.  As required by the continuation coverage
provisions of Section 4980B of the U.S. Internal Revenue Code of 1986, as
amended (the “Code”), Employee shall be offered the opportunity to elect
continuation coverage under the group medical and dental benefit plans of the
Employer for Employee and Employee’s covered dependants (“COBRA Coverage”).
Notwithstanding Section 3.3 of this Agreement, any additional COBRA Coverage
obtained by the Employee shall be at Employee’s sole expense. Employee
understands and agrees that the Employer’s group medical and dental benefit
plans may change after the Separation Date, and that the existence and duration
of Employee’s rights and/or the COBRA rights of Employee’s eligible dependents
may also be limited by Section 4980 of the Code.

5.             Release and Waiver.
Employee, for and on behalf of Employee and each of Employee’s heirs,
executors, administrators, personal representatives, successors and assigns,
hereby acknowledges full and complete satisfaction of and fully releases and
forever discharges the Employer, its subsidiaries and their predecessors,
successors, assignees, parent companies, members and their affiliates,
officers, directors, partners, employees, agents and attorneys, past and
present (collectively, the “Released Entities”), from any and all
liability on or for any and all charges, claims, controversies, actions, causes
of action, cross-claims, counterclaims, demands, debts, duties, sanctions,
fines, compensatory, liquidated damages, punitive or exemplary damages,
consequential or other damages, claims for costs, attorneys’ fees, sums of
money, suits, contracts, covenants, controversies, agreements, promises,
responsibilities, obligations and accounts of any nature whatsoever in law or
in equity, direct or indirect, both past and present and whether or not now or
heretofore known, suspected or unsuspected, or claimed against the

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Released Entities
(collectively, “Claims”), through and including the date of this
Agreement, including, but not limited to, Claims arising out of or in any way
related to or based upon:

a.                                       Employee’s
employment, involvement, interest in or Separation from the Employer;

b.                                      Any
and all claims in equity, tort or contract, and any and all claims alleging breach
of an express or implied, oral or written, contract, policy manual or employee
handbook;

c.                                       Any
and all claims for reinstatement, back pay, front pay, attorneys’ fees and any
form of injunctive or other equitable relief;

d.                                      Any
alleged misrepresentation, defamation, interference with contract, intentional
or negligent infliction of emotional distress, sexual harassment, negligence or
wrongful discharge;

e.                                       Any
federal, state or locate statute, code, ordinance or regulation, including, but
not limited to, the Age Discrimination in Employment Act of 1987, as amended;
and

f.                                      All
rights afforded by any statute or other law which limit the effect of a release
with respect to unknown claims.

The
Parties represent that they have not commenced and will not at any time after
execution of this Agreement commence any action, lawsuit, or other legal
proceeding or file any charge or complaint with any federal, state or local
agency against each other relating in any way to Employee’s employment or the
termination of his employment with Employer.

Employee
understands the significance of this release of unknown claims and Employee’s
waiver of protection against a release of unknown claims, and acknowledges and
agrees that this waiver is an essential and material term of this Agreement.

The
Parties intend that the release set forth in this paragraph shall be construed
as broadly and generally as the law permits and that no reference therein to a
specific form of claim, statute or type of relief is intended to limit the
scope of this release and waiver. Employee acknowledges that if Employee brings
or attempts to bring a Claim against a Released Entity or seeks to recover
against a Released Entity in any Claim brought by a governmental agency on
Employee’s behalf, this release shall serve as a complete defense to any such
Claim.

6.             Confidentiality.

6.1           Confidentiality. Employee
acknowledges that all proprietary knowledge and information that he acquired in
the course of his employment relating to the Employer’s financial status,
personnel policies and procedures, business development activities, services,
products, advertising, prices, suppliers, supplier lists, customers, customer
lists, customer needs and requirements, marketing sources, projects, product
designs, ideas, discoveries, creations, developments, improvements, computer
software, manufacturing and processes are the valuable property of the
Employer. From and after the Effective Date, Employee shall maintain strictly
confidential and shall not to use, directly or indirectly, for the benefit of
Employee or any third party other than the Employer, any Confidential
Information (as defined below), unless he is required to disclose Confidential
Information pursuant to the terms of a valid and effective order issued by a
court of competent jurisdiction or a governmental authority. All physical
items, including electronic media, containing Confidential Information,
including, without limitation,

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any business plan,
know-how, collection methods and procedures, advertising techniques, marketing plans
and methods, sales techniques, documentation, contracts, reports, letters,
notes, any computer media, customer lists, project files or information,
employee and prospective employee files, and all other information and
materials of the Employer’s business and operations, shall remain the exclusive
and confidential property of the Employer and shall be returned, along with any
copies or notes Employee made thereof or therefrom, to the Employer promptly
upon execution of this Agreement. Employee further agrees not to use any of the
Confidential Information in any manner adverse to the Employer or any of its
employees, officers, directors, shareholders, agents or affiliates, without the
express prior written consent of the Employer, or otherwise take any action
which is prejudicial in any manner to the interests of the Employer in
preserving the Confidential Information. Employee acknowledges that nothing in
this Agreement alters his obligations contained in the prior written agreement
with the Employer relating to non-disclosure of Confidential Information,
executed by Employee on December 1, 2004. Employee hereby specifically
reaffirms all such obligations.

6.2           Confidential Information.  “Confidential Information” means all
information not available to the general public and not generally known in the
industry, without regard to form, related to the Employer’s business, that was
developed or acquired in the course of Employee’s employment. Such information
shall include, but is not limited to: (a) any financial, business, planning,
operations, services, potential services, products, potential products,
technical information, intellectual property, trade secrets and/or know-how, as
well as project, production, purchasing, marketing, sales, personnel, customer,
supplier, or other information of the Employer or its customers; (b) any
papers, data, records, processes, methods, techniques, systems, models,
samples, devices, equipment, compilations, invoices, customer lists, project
information, employee and prospective employee files, or documents of the
Employer; (c) any confidential information or trade secrets of any third party
provided to the Employer in confidence or subject to other use or disclosure,
restrictions, or limitations; (d) any information regarding the Released
Parties; and (e) any other information, written, oral or electronic, which
pertains to the Employer’s affairs or interests or with whom or how the
Employer does business, whether existing now or at some time in the future,
whether pertaining to current or future projects or developments, and whether
accessed during, prior to, or after Employee’s tenure or association with the
Employer. The Employer acknowledges and agrees that Confidential Information
shall not include information in the public domain.

6.3           Confidentiality of this Agreement.
Subject to Section 6.2, each Party agrees that he/it will strictly maintain the
confidentiality of the existence and terms of this Agreement, except that he/it
may disclose the existence and the terms of this Agreement (a) if required by
order of a court of competent jurisdiction, (b) if agreed to in writing by the
other Party hereto, (c) to his legal, tax and accounting advisors, and may
provide a copy of this Agreement to such advisors; provided, however, that each
Party instructs such Party’s advisors that the matters contained herein are
confidential and that any disclosure by them to a third person would be
improper and could constitute a breach of this Agreement.

7.             Survival of Agreements.
Employee understands and agrees that certain provisions of the Employee
Confidential Information and Inventions Agreement, executed by Employee on
September 24, 2001 (collectively, “Noncompetition and Termination Provisions”),
by their terms survive and continue in full force and effect beyond the
Separation Date. Employee reaffirms all obligations, duties, and agreements
made in each of the Termination Provisions.

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8.             Non-Compete; Non-Solicitation;
Non-Disparagement.

8.1           Non-Compete. From and after
the Effective Date and through and including the first anniversary thereof,
Employee shall not compete, directly or indirectly, with the Employer in the
specific market area of semiconductor assembly and packaging with
electrochemical technology (the “Employer’s Business”) (including, but not
limited to, accepting employment with, consulting for or otherwise providing
assistance in any manner to any company, entity or person that engages in the
Employer’s Business. The geographic scope of Employee’s non-compete obligation
is worldwide.

8.2           Non-Solicitation. From and
after the Effective Date and through and including the first anniversary
thereof, Employee shall not (a) solicit, encourage, or take any other action
which is intended to induce any other employee, customer or vendor of the
Employer to terminate his/her employment, contract or arrangement with the
Employer, (b) interfere, in any manner, with the contractual, employment or
other relationship between the Employer and any employee, customer or vendor of
the Employer, or (c) either directly or indirectly, make known to any person,
firm, corporation or other legal entity the names or addresses of any of the
customers, clients or vendors of the Employer or any other information
pertaining to them, and shall not solicit, divert, take away, or attempt to
solicit, divert, or take away any of the current customers, clients or vendors
of the Employer or any person or legal entity that was a customer, client or
vendor of the Employer at any point dining Employee’s employment with the
Employer, either for Employee or for any other person, firm, corporation, or
other legal entity. Employee hereby specifically reaffirms all such
obligations.

8.3           Non-Disparagement. The Parties
agree they shall not disparage, criticize, or make any statements, written or
verbal, that are or that could be construed to be negative regarding each other

9.             No Re-Employment. Excluding
only Employee’s continued service as Chairman of the Employer’s Board of
Directors and the Consulting Agreement executed concurrently herewith, the
Employee forever waives and relinquishes any and all claim, right, or interest
in reinstatement or future employment that he presently has or might in the
future have with the Employer, its parents, successors, purchasers, subsidiaries,
affiliates, shareholders or assigns. The Employee agrees and understands that
in the event he does apply for employment with the Employer in the future, his
employment application need not be considered by the Employer.

10.           Return of Corporate Property.
On or before the Effective Date, Employee shall return to Employer, in good
working order to the extent applicable:

10.1         all originals and copies of any
including business records, files, customer lists, project documents or other
documents of any kind, including but not limited to, spreadsheets,
correspondence, engineering, cad files, calculations and business plans,
belonging to, or related to, the Employer which are or were subject to his
access, custody or control, regardless of the sources from which such records
were obtained;

10.2         all keys, security passes, Employer
identification and other means of access to the Employer’s offices, and other
facilities, except as necessary for Employee to enter and use the portion of
Employer’s facility allocated to GET;

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10.3         any and all cell phones, computer
hardware, equipment, software, tools, product, credit cards, belonging to the
Employer, including any and all program and/or data disks, manuals and all hard
copies of Employer information and data, and shall disclose to the Employer any
and all passwords utilized by Employee with regard to the Employer’s
computer(s), hardware and software so that the Employer has immediate, full and
complete access to all of the Employer’s data and information stored, used and
maintained by Employee or to which Employee had access;

10.4         all
Confidential Information (as defined in Section 6.2); and

10.5         specifically excluded from the
provisions of this Section 10 are certain assets belonging to Employee and/or
GET that are located on Employer’s premises and described on Exhibit B hereto.

11.           Attorneys’ Fees. In the event
it shall become necessary for the Employer or Employee to take action of any
type whatsoever to enforce the terms of this Agreement, the prevailing party in
any such action shall be entitled to recover all attorneys’ fees, costs, and
expenses, including all out-of-pocket expenses that are not taxable as costs,
incurred in connection with any such action, including any negotiations,
mediations, arbitrations, litigation and appeal.

12.           Knowing Agreement. The Parties
represent that he or it has read this Agreement, has been given an opportunity
to discuss the terms with their respective attorneys or tax advisors, and
understands each of its terms. Employee further represents that he is entering
into this Agreement and executing this Agreement knowingly, voluntarily, and
willingly.

13.           Construction. The Parties
agree that they have each reviewed this Agreement and that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply to the interpretation of this Agreement.

14.           Severability. If any provision
of this Agreement shall be held invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions of this
Agreement shall not be impaired thereby.

15.           Complete Agreement;
Inconsistencies. Notwithstanding the Noncompetition and Termination
Provisions referenced in paragraph 7, this Agreement constitutes the complete
agreement between the Parties, and supersedes any and all prior contracts,
understandings, commitments, arrangements, and agreements, whether written or
oral, express or implied. The provisions of this Agreement may be amended and
waived only with the prior written consent of each of the Parties.

16.           Effect of Headings. The
subject headings of the paragraphs of this Agreement are included for purposes
of convenience only, and shall not affect the construction or interpretation of
any of its provisions.

17.           Counterparts. This Agreement
may be executed in separate counterparts, each of which is deemed to be an
original and all of which taken together constitute one and the same Agreement.

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18.           Successors and Assigns Except
as otherwise provided herein, this Agreement shall bind and inure to the
benefit of and be enforceable by the Employee, the Employer, each of the Party’s
respective successors and assigns, the Released Entities and the Released
Persons.

19.           Authority of Parties. The
Parties represent they have the requisite authority to enter into this
Agreement.

20.           Governing Law and Forum. All
questions concerning the construction, validity and interpretation of this
Agreement shall be governed by and construed in accordance with the laws of the
State of New Mexico. Any action arising out of or relating to this Agreement,
or any of its terms, shall be filed only within the courts of the State of New
Mexico.

21.           Indemnification and Release.
Employer hereby releases Employee and agrees to defend, indemnify and hold
Employee harmless from any and all liability on or for any and all charges,
claims, controversies, actions, causes of action, cross-claims, counterclaims,
demands, debts, duties, sanctions, fines, compensatory or liquidated damages,
punitive or exemplary damages, consequential or other damages, claims for
costs, attorney’s fees, sums of money, suits, contracts, covenants, agreements,
promises, responsibilities, obligations, litigation expenses, court costs,
judgments, fines or amounts paid in settlements and accounts of any nature
whatsoever in law or in equity, direct or indirect, both past and present, and
whether or not now or heretofore known, suspected or unsuspected, or claimed
against the Employee (“Claims”) by Employer, any investor or any third party,
arising prior to the date of this Agreement out of or in any way related to or
based upon Employee’s actions as a director and officer of Employer to the
fullest extent permitted by applicable law. The indemnification provided for
herein shall be the broadest corporate indemnification allowed pursuant to 1978
NMSA Section 53-11-4.1 (1987) or any successor statute or law or by common law
or equity. Notwithstanding the foregoing, to the extent, if at all, that this
Agreement is deemed to be within the meaning of Section 56-7-1 NMSA 2003 as
amended from time to time, it shall not be construed to indemnify the
indemnitee from his own negligence, acts or omissions, but shall be limited to
liability, damages, losses or costs caused by, or arising out of, the acts or omissions
of the indemnitor and its officers, employees, or agents.

22.           Acknowledgment under
the ADEA. This is an important legal document. Employee its advised to
consult with an attorney before signing this Agreement. Employee is advised
that Employee has 21 days after receiving this Agreement to consider it. If
Employee chooses to agree to the terms of this Agreement, Employee must sign
and return this Agreement to the Employer within twenty one (21) days of
Employee’s receipt of this Agreement. If Employee signs this Agreement,
Employee will then have the right to revoke this Agreement by delivering
written notice of revocation to counsel for the Employer, but such notice must
be received within seven (7) days after the date Employee signed this Agreement.
The signed Agreement and/or any notice of revocation must be delivered to:

Perry E. Bendickson,
Esq.

Brownstein
Hyatt & Farber, PC

201 Third
Street, N.W., Suite 1500

Albuquerque,
NM 87102

 7
 

 

If this Agreement is not signed and delivered to
counsel for the Employer within the twenty-one (21) day period, or if it is
revoked within the seven (7) day period, neither Employee nor the Employer will
have any rights or obligations under this Agreement. This Agreement is binding
upon and shall inure to the benefit of Employee, the Employer and the Employer’s
successors and assigns. By signing this Agreement, the Parties represent that
they have read and understand it, that they have discussed it or had an
opportunity to discuss it with their respective attorneys, and that they enter
into it knowingly and voluntarily.

WHEREFORE, the
Parties voluntarily enter into this Agreement by affixing their signatures
hereunto on the date set forth below.

 

	
  8/25/2005

  	
   

  	
   

  	
  /s/ Thomas Griego

  	
   

  
	
  Date

  	
   

  	
  Employee Name: Thomas Griego

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Surfect Technologies, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  8/25/2005

  	
   

  	
   

  	
  By:

  	
  /s/ Steven Anderson 

  	
   

  
	
  Date

  	
   

  	
  Name: Steven Anderson

  
	
   

  	
   

  	
  Title: President and CEO

  
						

 

 8
 

 

EXHIBIT “A”

	
  

  	
   

  	
   

  	
   

  	
  Amount

  	
   

  
	
  8/25/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  105.00

  	
   

  
	
  10/27/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  251.31

  	
   

  
	
  11/24/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  1,619.54

  	
   

  
	
  11/24/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  66.30

  	
   

  
	
  12/20/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  376.47

  	
   

  
	
  12/20/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  732.69

  	
   

  
	
  12/31/2004

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  1,653.59

  	
   

  
	
  1/11/2005

  	
   

  	
  Loan to officer

  	
   

  	
  8,000.00

  	
   

  
	
  1/31/2005

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  1,049.96

  	
   

  
	
  2/24/2005

  	
   

  	
  Loan to officer

  	
   

  	
  2,500.00

  	
   

  
	
  2/25/2005

  	
   

  	
  Loan to officer

  	
   

  	
  2,500.00

  	
   

  
	
  2/25/2005

  	
   

  	
  Personal use of
  Company CC

  	
   

  	
  1,298.47

  	
   

  
	
  2/28/2005

  	
   

  	
  Offset Loan fr
  Officer Amount

  	
   

  	
  (5,093.89

  	
  )

  
	
  5/31/2005

  	
   

  	
  Repayment thru
  payroll deduction

  	
   

  	
  (500.00

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
  14,599.44

  	
   

  

 

 9
 

 

 

EXHIBIT “B”

 

·                                          Gift
Dell Workstation located at GET Systems

·                                          Return
one of two SolidWorks License to GET Systems – Surfect has prepaid maintain on
license thru December 31, 2005. After that time it will be up to GET to
continue maintenance.

·                                          Exchange
two (2) Sony Vaio notebooks and Dell laser copier for second SolidWorks seat
original purchased by GET Systems that will be retained by Surfect.

 

 10

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