Document:

20-F

Exhibit 4.17  

PRIVATE &
CONFIDENTIAL 

BETWEEN 

 SHANGHAI AIXUN SOFTWARE CO., LTD.

 as Vendor 

AND 

ASIASOFT SYSTEM
(CHINA) LIMITED 
as Purchaser  

AGREEMENT
RELATING TO THE SALE AND PURCHASE OF 0.82% OF THE
 REGISTERED CAPITAL OF SHANGHAI ASIASOFT
LTD. 

CONTENTS 

			
	  1	INTERPRETATION	1 
	 
	  2	CONDITIONS	3 
	 
	  3	SALE AND PURCHASE OF SALE CAPITAL	3 
	 
	  4	CONSIDERATION	4 
	 
	  5	COMPLETION	4 
	 
	  6	WARRANTIES	5 
	 
	  7	UNDERTAKINGS	6 
	 
	  8	NO DEALING	6 
	 
	  9	CONFIDENTIALITY	6 
	 
	 10	MISCELLANEOUS	6 
	 
	SCHEDULE 1	9 

i

AGREEMENT 

THIS AGREEMENT is entered into this
[12th] day of [June] 2007 

BETWEEN: 

          	1. 	
               Shanghai Aixun Software Co., Ltd. (in
               Chinese ;
               Company Registration Number: 3101142019740), formerly known as Shanghai
               Mingzhong Computer Network Co., Ltd. (in
               Chinese     ),
               is a company incorporated in the People’s Republic of China and having its
               address at No. 7735, Fanghuang Road, Shanghai, (the ‘Vendor’);
               and 

               

	2.  	Asiasoft
System (China) Limited (Company Registration Number: 728971) is a                company
incorporated in Hong Kong and having its address at Room 2205, Universal
               Trade Centre, 3-5A Arbuthnot Road, Central, Hong Kong (the
               ‘Purchaser’); 

WHEREAS: 

          	(A) 	
                Shanghai Asiasoft Ltd. (Company Registration Number: QI ZUO HU ZONG FU ZI DI
               028477 HAO (XU HUI)) (the ‘Company’) is a Sino-foreign
               cooperative joint venture company incorporated in China and having its address
               at Room 1608, No. 11, Puhuitang Road, Shanghai and has at the date of this
               Agreement a registered capital of USD 1,220,000.00. Further particulars of the
               Company are contained in Schedule 1. 

               

	(B)  	At
the date of this Agreement, the Vendor is the registered owner of USD
               10,000.00 in the registered capital of the Company (equivalent to 0.82% of
the                registered capital of Company). 

	(C)  	The
Vendor has agreed to sell, and the Purchaser has agreed to purchase, the
               Sale Capital (as defined below) for the consideration, and on the terms
and                subject to the conditions, contained in this Agreement (the
               ‘Acquisition’). 

NOW IT IS AGREED AS FOLLOWS: 

	1  	INTERPRETATION  

	1.1  	Definitions  

	 	
In
this Agreement and the Schedules, unless the context otherwise requires:  

	 	
‘Amended
Business License’ means the business license of the Company to be issued by the
State Administration for Industry and Commerce of PRC or its designated local authorities
following the relevant approval of the Agreement;  

	 	
‘Business
Day’ means a day (other than a Saturday or Sunday) on which commercial banks are
open for business in People’s Republic of China;  

	 	
‘Completion’ means
the completion of the sale and purchase of the Sale Capital pursuant to Clause 5;  

1

	 	
‘Completion
Date’ means the date falling seven (7) days after the last condition precedent
has been fulfilled and in any case, no later than fourteen (14) days after completion of
the Stock Purchase Agreement, or such other date as the Parties may agree in writing;  

	 	
‘Confidential
Information’ means any information relating to the transactions contemplated
under this Agreement received by one Party from the other;  

	 	
‘Deal’ means
to sell, offer for sale, transfer, assign or grant or allow to exist any Encumbrance,
trust, option or other right in relation to the whole or any part of any Sale Capital;  

	 	
‘Encumbrance’ means
any form of legal, equitable, or security interests, including but not limited to any
mortgage, assignment of receivables, debenture, lien, charge, pledge, title retention,
right to acquire, security interest, hypothecation, option, right of first refusal, any
preference arrangement (including title transfers and retention arrangements or
otherwise) or any other encumbrance or condition whatsoever or any other arrangements
having similar effect;  

	 	
‘Group
Companies’ and ‘Group’ means the Company, and its subsidiaries
and associated companies, and ‘Group Company’ means any of them;  

	 	
‘Parties’means
the Vendor and the Purchaser, and ‘Party’ means any of them;  

	 	
‘PRC’ means
the People’s Republic of China, which, for the purposes of this Agreement, shall
exclude Hong Kong, Macao Special Administrative Region and Taiwan;  

	 	
‘Purchase
Consideration’ has the meaning ascribed to it in Clause 4.1;  

	 	
‘Purchaser
Warranties’ means the representations, warranties and undertakings on the part of
the Purchaser set out in Clause 7;  

	 	
‘Renminbi’
or ‘RMB’ means the lawful currency of the PRC;  

	 	
‘Sale
Capital’ means the portion of the registered capital of the Company referred to
in Recital (B)  which is to be sold by the Vendor to the Purchaser on the terms
and subject to the conditions contained in this Agreement;  

	 	
‘Stock
Purchase Agreement’ means the agreement dated [—] entered into between PC
Holdings Pte. Ltd. and Top Image Systems, Ltd. for the acquisition of all the shares held
by PC Holdings Pte. Ltd. in Asiasoft Global Pte. Ltd.  

	 	
‘Third
Party Confidential Information’ means Confidential Information belonging to a
person who is not party to this Agreement;  

	 	
‘Transaction’ includes
any transaction, act, event or omission of whatever nature;  

	 	
‘USD’ means
the lawful currency of the United States of America;  

	 	
‘Vendor
Warranties’ means the representations, warranties and undertakings on the part of the
Vendor set out in Clause 7; and  

	 	
‘Warranties’ means,
collectively, the Vendor Warranties and the Purchaser Warranties, and ‘Warranty’ shall
mean any one of such Warranties.  

2

	1.2  	Miscellaneous  

	 	
The
headings in this Agreement are inserted for convenience only and shall be ignored in
construing this Agreement. Unless the context otherwise requires, words (including words
defined in this Agreement) denoting the singular number only shall include the plural and
vice versa. The words ‘written’ and ‘in writing’ include
any means of visible reproduction. References to the ‘Appendices’, ‘Clauses’,
‘Recitals’ and ‘Schedules’ are to the relevant
appendices, clauses of, recitals of and the schedules to this Agreement.  

	2  	CONDITIONS  

	2.1  	Conditions  

	 	
The
sale and purchase of the Sale Capital is conditional upon:  

	 	(a) 	no
material adverse change (as reasonably determined by the Purchaser in its           sole
and absolute discretion prior to the Completion Date) in the prospects,
          operations or financial conditions of the Group, taken as a whole, occurring on
          or before the Completion Date; 

	 	(b) 	the
certificate of approval by the relevant authorities for the acquisition of           the
Sale Capital and the Amended Business License of the Company being obtained           and
not withdrawn, on or before Completion; 

	 	(c) 	the
completion of the Stock Purchase Agreement in according to the terms and
          subject to the conditions therein; 

	 	(d) 	all
representations, undertakings and warranties of the Vendor under this           Agreement
being complied with, are true, accurate and correct as at the           Completion Date
in all material respects; 

	 	(e) 	the
relevant evidencing documents, to the satisfactory of the Purchaser, having
          been provided by the Vendor to the Purchaser, evidencing that the Vendor was
          formerly named as Shanghai Mingzhong Computer Network Co., Ltd; and 

	 	(f) 	The
termination of the Cooperative Contract dated 5 March 2001. 

	2.2  	Effect
Of Non-Fulfillment Of Conditions  

	 	
If
any of the conditions in Clause 2.1 thatis capable of being waived by the
Purchaser is not waived by the Completion Date or otherwise fulfilled, the Purchaser
shall give a written notice to the Vendor, within ten (10) working days after the
Completion Date, indicating that the Agreement shall ipso facto terminate, and
none of the Parties shall have any claim against the other for costs, damages,
compensation or otherwise, save that the Parties’ obligation of confidentiality
under Clause 9 shall survive the termination of this Agreement. Or else, all the
conditions specified in Clause 2.1 shall deem to be fulfilled.  

	3  	SALE
AND PURCHASE OF SALE CAPITAL  

	3.1  	Sale
And Purchase  

	 	
Subject
to the terms and conditions of this Agreement, the Vendor shall sell the Sale Capital,
and the Purchaser, relying on inter alia the several representations, warranties
and undertakings contained in this Agreement, shall purchase the Sale Capital, free from
all Encumbrances and together with all rights attached thereto as at the Completion Date
and thereafter attaching thereto.  

3

	4  	CONSIDERATION  

	4.1  	Purchase
Consideration  

	 	
The
consideration for the purchase of the Sale Capital (the ‘Purchase Consideration’)
shall be RMB 4,000,000.00 in total. The Purchaser will pay 60% of the Purchase
Consideration to the bank account designated by the Vendor in writing within 20 working
days after all the conditions specified in Clause 2.1 being fulfilled or otherwise waived
by the Purchaser. The Purchaser shall pay the remaining 40% of the Purchase Consideration
to the bank account designated by the Vendor in written before 31 December 2007.  

	5  	COMPLETION  

	5.1  	Date
And Place  

	 	
Subject
as hereinafter provided, Completion shall take place at the offices of the Purchaser (or
at such other place as the Parties may agree in writing) on the Completion Date.  

	5.2  	Vendor’s
Obligations on Completion  

	 	
On
the Completion Date, the Vendor shall deliver to the Purchaser the certificate of
approval from the Commission of Commerce and Amended Business License of the Company.  

	5.3  	Right
To Terminate  

	 	(a) 	If
the documents required to be delivered by the Vendor on Completion are not
          forthcoming for any reason or if in any other respect the provisions of Clause
5.2 are not fully complied with by the Vendor, the Purchaser shall           be
entitled (in addition to and without prejudice to all other rights or           remedies
available to it, including the right to claim damages): 

	 	(i) 	to
elect to terminate this Agreement;  

	 	(ii) 	to
effect Completion so far as practicable having regard to the defaults which
               have occurred and without prejudice to its rights in respect thereof; or  

	 	(iii) 	defer
Completion to a date not more than 28 days after the Completion Date (in
               which case the provisions of this Clause 5.3 shall apply to
Completion as                so deferred).  

	 	(b) 	For
the avoidance of doubt, in the event that the Stock Purchase Agreement is           not
completed according to the terms contained therein, the Purchaser shall be
          entitled to terminate this Agreement and upon the termination, this Agreement
          shall ipso facto terminate and none of the Parties shall have any claim
          against the other for costs, damages, compensation or otherwise. 

4

	6  	WARRANTIES  

	6.1  	Vendor
Warranties  

	 	
The
Vendor represents and warrants to and undertake with the Purchaser and its successors in
title (with the intent that the provisions of this Clause 6.1 shall continue to
have full force and effect notwithstanding Completion) as follows:  

	 	(a) 	it
is and will on Completion be entitled to and is able to transfer the Sale
          Capital to the Purchaser and under this Agreement; 

	 	(b) 	the
Sale Capital is fully paid-up; 

	 	(c) 	the
Vendor is the registered owner of the Sale Capital; 

	 	(d) 	the
Sale Capital is and will on Completion be free from all and any Encumbrances
          whatsoever, and no other person has or shall have any rights of pre-emption
over           such Sale Capital; 

	 	(e) 	it
has full power and capacity to enter into and perform this Agreement and this
          Agreement when executed will constitute valid and binding obligations on and
          against the Vendor; and 

	 	(f) 	the
execution and delivery of, and the performance by the Vendor of its           obligations
under, this Agreement will not:- 

	 	(i)	         result
in a breach of any provision of any agreement to which the Vendor is a           party;
or  

	 	(ii) 	result
a breach of any order, judgment or decree of any court, governmental
               agency or regulatory body to which the Vendor is a party or by which the
Vendor                is bound.  

	6.3  	Warranties
To Be Separate And Independent  

	 	
The
Warranties shall be separate and independent and shall not be limited by anything in this
Agreement which is not expressly referenced to the Warranty concerned.  

	6.4  	Updating
To Completion  

	 	
The
Vendor represents and warrants to and undertakes with the Purchaser and their successors
in title that the Warranties given by it will be fulfilled down to, and will be true and
correct in all material respects and not misleading at, Completion as if they had been
entered into afresh at Completion and with reference to the circumstances then existing
at Completion.  

	6.5  	Effect
Of Completion  

	 	
The
Warranties and all other provisions of this Agreement insofar as the same shall not have
been performed at Completion shall not in any respect be extinguished or affected by
Completion, or by any other event or matter whatsoever, except by a specific and duly
authorised written waiver or release by the Purchaser.  

5

	7  	UNDERTAKINGS  

	 	
The
Vendor and the Company undertakes with the Purchaser that after this Agreement comes into
effect, it will do all such acts and things and execute and file all such documents as
may be required in connection with this Agreement and the sale and purchase of the Sale
Capital as expeditiously as practicable.  

	8  	NO
DEALING  

	 	
The
Vendor covenants not to Deal with the Sale Capital prior to Completion.  

	9  	CONFIDENTIALITY  

	9.1  	Confidential
Information To Be Kept Confidential  

	 	9.1.1 	Confidential
Information shall be used by each Party exclusively for the purpose of the transactions
contemplated by this Agreement only. Both Parties agree to hold in confidence all
information disclosed to it by the other Party unless it is required or desirous to be
disclosed by law, a court order or by any other competent authority or regulatory body,
and provided that the receiving Party shall notify the disclosing Party before disclosing
the Confidential Information so that the disclosing Party may be afforded the opportunity
to contest the order or otherwise seek modification to restrict disclosure. 

	 	9.1.2 	The
Parties agree that no announcement of any Confidential Information shall be made by
either Party without prior consultation with the other Party. 

	 	9.1.3 	The
restrictions above shall not apply to any Confidential Information: 

	 	(a) 	which
at the time of disclosure to the receiving Party is in the public domain;
               or  

	 	(b) 	which
after such disclosure, becomes generally available to the public other
               than by reason of breach of the restrictions above.  

	 	9.1.4 	Any
Confidential Information imparted hereunder shall remain in the property of the
originating Party. 

	9.2  	Obligations
In This Clause To Endure  

	 	
The
obligations contained in this clause shall inure, even after the termination of this
Agreement, without limit in point of time.  

	10  	MISCELLANEOUS  

	10.1  	Entire
Agreement  

	 	
This
Agreement (together with any documents referred to herein or executed contemporaneously
by the Parties in connection herewith) embodies all the terms and conditions agreed upon
between the Parties as to the subject matter of this Agreement and supersedes and cancels
in all respects all previous agreements and undertakings, if any, between the Parties
with respect to the subject matter hereof, whether such be written or oral.  

6

	10.2  	Release  

	 	
Any
liability to any Party under this Agreement may in whole or in part be released,
compounded or compromised, or time or indulgence given, by it in its absolute discretion
as regards the other Party under such liability without in any way prejudicing or
affecting its rights against such other Party.  

	10.3  	Indulgence,
Waiver, Etc.  

	 	
No
failure on the part of either Party to exercise and no delay on the part of such Party in
exercising any right hereunder will operate as a release or waiver thereof, nor will any
single or partial exercise of any right under this Agreement preclude any other or
further exercise of it or any other right or remedy.  

	10.4  	Continuing
Effect Of Agreement  

	 	
All
provisions of this Agreement shall not, so far as they have not been performed at
Completion, be in any respect extinguished or affected by Completion or by any other
event or matter whatsoever and shall continue in full force and effect so far as they are
capable of being performed or observed.  

	10.5  	Successors
And Assigns  

	 	
This
Agreement shall be binding on and shall enure for the benefit of each of the Parties’successors
and assigns. Any reference in this Agreement to any of the Parties shall be construed
accordingly.  

	10.6  	Time
Of Essence  

	 	
Any
time, date or period mentioned in any provision of this Agreement may be extended by
mutual agreement between the Parties in accordance with this Agreement or by agreement in
writing but as regards any time, date or period originally fixed or any time, date or
period so extended as aforesaid time shall be of the essence.  

	10.7  	Further
Assurance  

	 	
At
any time after the date of this Agreement, each Party shall, and shall use its best
endeavours to procure that any necessary third party shall, execute such documents and do
such acts and things as the other Parties may reasonably require for the purpose of
giving to such other Parties the full benefit of all the provisions of this Agreement.  

	10.8  	Remedies  

	 	
No
remedy conferred by any of the provisions of this Agreement is intended to be exclusive
of any other remedy which is otherwise available at law, in equity, by statute or
otherwise, and each and every other remedy shall be cumulative and shall be in addition
to every other remedy given hereunder or now or hereafter existing at law, in equity, by
statute or otherwise. The election of any one or more of such remedies by any Party shall
not constitute a waiver by such Party of the right to pursue any other available
remedies.  

7

	10.9  	Severability
Of Provisions  

	 	
If
any provision of this Agreement is held to be illegal, invalid or unenforceable in whole
or in part in any jurisdiction, this Agreement shall, as to such jurisdiction, continue
to be valid as to its other provisions and the remainder of the affected provision; and
the legality, validity and enforceability of such provision in any other jurisdiction
shall be unaffected.  

	10.10  	Communications  

	 	(a) 	Notices
To Be In Writing  

	 	
All
notices, demands or other communications required or permitted to be given or made
hereunder shall be in writing and delivered personally or sent by prepaid registered post
with recorded delivery, addressed to the intended recipient thereof at its address set
out at the front of this Agreement (or such other address as is notified by a Party from
time to time), and marked for the attention of such person (if any). 

	 	(b) 	Deemed
Delivery Date  

	 	
Any
such notice, demand or communication shall be deemed to have been duly served (if
delivered personally or given or made by facsimile) immediately or (if given or made by
letter) two Business Days after posting and in proving the same it shall be sufficient to
show that personal delivery was made or that the envelope containing such notice was
properly addressed, and duly stamped and posted or that the facsimile transmission was
properly addressed and despatched. 

	10.11  	Governing
Law And Jurisdiction  

	 	
This
Agreement shall be governed by, and construed in accordance with, the laws of [the People’s
Republic of China] and the Parties hereby irrevocably submit to the non-exclusive
jurisdiction of the courts of the People’s Republic of China and waive any objection
to proceedings in any such court on the grounds of venue or on the grounds that the
proceedings have been brought in. The submission by the Parties herein shall not affect
the right of any Party to take proceedings in any other jurisdiction nor shall the taking
of proceedings in any jurisdiction preclude any Party from taking proceedings in any
other jurisdiction.  

8

SCHEDULE 1 

PARTICULARS OF THE
COMPANY 

Registration Number: QI ZUO HU ZONG FU ZI DI 028477 HAO (XU HUI)

Registered Office: Room
1608, No. 11, Puhuitang Road, Shanghai 

Date and Place of
Incorporation: 12 April 2001, Shanghai 

Issued and Fully Paid-Up Capital: USD
1,220,000.00 

Legal Representative: He
Peiqi  

Directors: [—] 

Secretary: [—] 

Auditors: [—] 

Accounting Reference
Date: [—] 

9

IN WITNESS WHEREOF this Agreement has
been entered into on the date stated at the beginning. 

		
	The Vendor 	 
	 
	Signed by	)
	for and on behalf of	)
	[—]	)
	in the presence of:	)
	 
	 
	The Purchaser 
	 
	Signed by	)
	for and on behalf of	)
	[—]	)
	in the presence of:	)

10ex10-1.htm

    Exhibit
10.1

     

     

    EMPLOYMENT
AGREEMENT

    

    

    THIS EMPLOYMENT AGREEMENT (this
“Agreement”) is made effective as of this 1st day of
January, 2008 (the “Effective Date”), by and between IR BioSciences Holdings,
Inc., a Delaware corporation (the “Company”), and John Fermanis, an individual
(“Employee”), with reference to the following facts:

    

    

    RECITALS

    

    WHEREAS, the Company desires that
Employee be employed as Chief Financial Officer of the Company; and

    

    WHEREAS, Employee is willing to be
employed by the Company and provide services to the Company under the terms and
conditions herein stated.

    

    NOW, THEREFORE, in consideration of
the mutual covenants and agreements hereinafter contained, and for other good
and valuable consideration, it is hereby agreed by and between the parties
hereto as follows:

     

    AGREEMENT

    

    
      	
              1.  

            	
              Employment, Services,
      and Duties

            

    

    

    
      	
              1.1  

            	
              Employment.  The
      Company hereby employs Employee as Chief Financial Officer of the Company
      and Employee hereby accepts such employment as of the Effective Date upon
      the terms, covenants and conditions set forth herein.  Employee
      shall render his/her services to the Company by and subject to the
      instructions and directions of the Company’s President and Chief Executive
      Officer to whom Employee shall directly
report.

            

    

    

    
      	
              1.2  

            	
              Duties.  Employee
      shall perform all duties assigned to him/her by the Company’s President
      and Chief Executive Officer to the best of his/her ability and in a manner
      satisfactory to the Company.

            

    

    

    
      	
              1.3  

            	
              Time and
      Efforts.  Employee shall devote his/her full-time
      efforts, attention, and energies to the business of the
      Company.  Notwithstanding the foregoing, Employee may perform
      services for other persons, businesses and organizations, provided that
      the performance of such services does not interfere and is not
      inconsistent with the Employee’s performance of his/her duties and
      obligations under this Agreement, including without limitation, the
      Employee’s duties and obligations under Section 6 of this
      Agreement.

            

    

     

    
      	
              2.  

            	
              Term

            

    

    

    The term
of employment under this Agreement (“Term of Employment”) shall commence on the
Effective Date and, subject to the provisions of Section 4 below, shall continue
for two years.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.  

            	
              Compensation

            

    

    

    As the
total consideration for Employee’s services rendered hereunder, Employee shall
be entitled to the following:

    

    
      	
              3.1  

            	
              Base
      Salary.  A salary of $130,000 for the first 12 months of
      full-time employment (the “First Year Salary”).  A salary of
      $140,000 in the second year (the “Second Year Salary and collectively with
      the First Year Salary and the Second Year Salary, the “Base
      Salary”).  The Base Salary shall be payable in regular
      installments in accordance with the customary payroll practices of the
      Company.  Employee’s Base Salary shall be subject to such
      payroll deductions as required by law or as appropriate under the
      Company’s payroll deduction
procedures.

            

    

    

    
      	
              3.2  

            	
              Common
      Stock. None.

            

    

    

    
      	
              3.3  

            	
              Bonus.  Employee
      shall be entitled to a discretionary bonus pursuant to those terms set
      forth in Exhibit
      A hereto.

            

    

    

    
      	
              3.4  

            	
              Expenses.  During
      the Term of Employment, Employee is entitled to reimbursement for
      reasonable and necessary business expenses, per Company policy, incurred
      by Employee in connection with the performance of Employee’s duties
      hereunder provided that (a) such expenses are ordinary and necessary
      expenses incurred on behalf of the Company, and (b) Employee provides the
      Company with itemized accounts, receipts and other documentation for such
      expenses, to be reviewed by the Company’s C.E.O., as are reasonably
      required by the Company.

            

    

    

    
      	
              3.5  

            	
              Vacation.   Employee
      shall be entitled to three weeks vacation time each year during the first
      and second years of the Term of Employment without loss of compensation
      during the Term of Employment.  Employee’s vacation shall be
      governed by the Company’s usual policies applicable to all
      Employees.

            

    

    

    
      	
              3.6  

            	
              Fringe
      Benefits.  Employee shall be entitled to participate in
      or receive benefits under any employee benefit plan or other arrangement
      made available by the Company to its executive personnel, subject to and
      on a basis consistent with the terms, conditions and overall
      administration of such plans and
arrangements.

            

    

     

    
      	
              4.  

            	
              Termination

            

    

    

    Employee’s
employment shall terminate prior to the expiration of the Term of Employment set
forth in Section 2 above upon the happening of the following:

    

    
      	
              4.1  

            	
              Termination For
      Cause.  The Company may terminate this Agreement for
      Cause.  For purposes of this Agreement, “Cause” shall
      mean:

            

    

    

    
      	
              (a)  

            	
              a
      material act of dishonesty in connection with the Employee’s
      responsibilities as an employee of the
Company;

            

    

    
      	
              (b)  

            	
              Employee’s
      conviction of, or plea of nolo contendere to, a felony or a crime
      involving moral turpitude;

            

    

    
      	
              (c)  

            	
              Employee’s
      gross misconduct which has a material adverse effect on the Company;
      or

            

    

    
      	
              (d)  

            	
              Employee’s
      consistent and willful failure to perform his/her employment duties where
      such failure is not cured within 30 days after written notice to Employee
      by the Company.

            

    

    

    Any
termination for Cause shall be made by written notice to the Employee, which
shall set forth in reasonable detail all acts or omissions upon which the
Company is relying for the termination.

    

    
      	
              4.2  

            	
              Termination Without
      Cause.  The Company may terminate the employment of
      Employee and all of the Company’s obligations hereunder (except as
      hereinafter provided) at any time and for any reason or for no reason
      during the Term of Employment without Cause by giving Employee written
      notice of such termination, to be effective 15 days following the giving
      of such written notice.

            

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              4.3  

            	
              Termination Due to
      Disability or Death,  Employee’s employment
      hereunder:

            

    

    

    
      	
              (a)  

            	
              May
      be terminated by the Company upon 15 days’ notice to Employee in the event
      that the Company in good faith determines that Employee has been unable to
      satisfactorily perform his/her duties under this Agreement for an
      aggregate of 90 days within any 12-month period, or can reasonably be
      expected to be unable to do so for such period, as the result of
      Employee’s disability, and within 15 days of receipt of such notice,
      Employee shall not have returned to the full-time, continuing performance
      of his/her duties hereunder, and

            

    

    
      	
              (b)  

            	
              Will
      terminate immediately upon the death of
  Employee.

            

    

    

    For
purposes of this Section 4.3, the Employee shall be considered disabled or to be
suffering from a disability if the Employee is unable, after any reasonable
accommodations required by the Americans with Disabilities Act or any applicable
state law, to perform the essential functions of his position because of a
physical or mental impairment.  In the absence of agreement between
Company and the Employee, whether the Employee is disabled or suffering from a
disability (and the date as of which Employee became disabled) will be
determined by a licensed physician selected by Company.  If a licensed
physician selected by the Employee disagrees with the determination of the
physician selected by Company, the two (2) physicians shall select a third
physician.  The decision of the third physician concerning the
Employee’s disability then shall be binding and conclusive on all interested
parties.

    

    
      	
               
      

            	
              4.4
        

            	
              The
      Employee shall at all times have the right, by written notice not less
      than thirty (30) days prior to the termination date, to terminate the Term
      of Employment.

            

    

    

    
      	
              5.  

            	
              Effect of
      Termination

            

    

    

    
      	
              5.1  

            	
              Termination For
      Cause.   In the event that Employee’s employment is
      terminated pursuant to Sections 4.1 above, the Company shall pay to
      Employee, or his/her representatives, on the date of termination of
      employment (the “Termination Date”), in satisfaction in full for all of
      its obligations hereunder, the
following:

            

    

    

    
      	
              (a)  

            	
              Two
      months salary and payment for any accrued vacation provided for in Section
      3.5, in each case computed on a pro rata basis to the Termination Date;
      and

            

    

    
      	
              (b)  

            	
              Any
      expense reimbursements due and owing to Employee as of the Termination
      Date.

            

    

    

    
      	
              5.2  

            	
              Termination For Death
      or Disability.  In the event Employee’s employment is
      terminated pursuant to Section 4.3, the Company shall pay to Employee, or
      his/her representatives, on the Termination  Date in
      satisfaction in full for all of its obligations hereunder, the
      following:

            

    

    

    
      	
              (a)  

            	
              in
      the case of termination due to death, payment for any accrued vacation
      provided for in Section 3.5, in each case computed on a pro rata basis to
      the Termination Date; and

            

    

    
      	
              (b)  

            	
              in
      the case of termination due to disability, two months salary and payment
      for any accrued vacation provided for in Section 3.5, in each case
      computed on a pro rata basis to the Termination Date;
  and

            

    

    
      	
              (c)  

            	
              in
      the case of termination due to either death or disability, any unpaid Base
      Salary and Bonus and expense reimbursements due and owing to Employee as
      of the Termination Date.

            

    

    

    
      	
              5.3  

            	
              Termination Without
      Cause or a Constructive Termination.  In the event
      Employee’s employment is terminated pursuant to Section 4.2 or in the
      event a Constructive Termination occurs as Constructive Termination is
      defined in the Change-of-Control Agreement by and between the Company and
      Employee of even date herewith (the “Change-of-Control Agreement”), the
      Company shall pay to Employee, his/her representatives, on the Termination
      Date in satisfaction in full for all of its obligations hereunder, the
      following:

            

    

    

    
      	
              (a)  

            	
              the
      remainder of the salary for the year or six months salary, whichever is
      greater and payment for any accrued vacation provided for in Section 3.5,
      in each case computed on a pro rata basis to the Termination Date;
      and

            

    

    
      	
              (b)  

            	
              any
      unpaid Base Salary and Bonus and expense reimbursements due and owing to
      Employee as of the Termination
Date.

            

    

    

    
      	
               
      

            	
              5.4  
      

            	
              Termination by
      Employee.  In the event Employee’s employment is
      terminated pursuant to Section 4.4 and such termination of employment is
      not a Constructive Termination as defined in the Change-of-Control
      Agreement, the Company shall pay to Employee on the Termination Date in
      satisfaction in full of all of its obligations
  hereunder:

            

    

    

    
      	
               
      

            	
              (a) 
      

            	
              unpaid
      Base Salary and Bonus and expense reimbursements due and owing to Employee
      as of the Termination Date; and

            

    

    
      	
               
      

            	
              (b) 
      

            	
              any
      accrued vacation provided for in Section 3.5, computed on a pro rata basis
      to the Termination Date.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              6.  

            	
              Non-Competition;
      Confidentiality;
Non-Solicitation

            

    

    

    
      	
              6.1  

            	
              Covenant Not to
      Compete.  During the Term of Employment, neither Employee
      nor any affiliate of Employee, shall compete in any manner, directly or
      indirectly,  with the business of the Company and/or its
      affiliates (that is, the business of developing, manufacturing, marketing
      or selling products or services similar to those of the Company and/or its
      affiliates), or own, manage, operate, control, participate or have any
      interest in or be connected in any manner with the ownership or control of
      any business developing, manufacturing, marketing or selling products or
      services similar to those of the Company and/or its
      affiliates.  As used in this Agreement, an “affiliate” of
      Employee is any spouse, parent, child, or sibling of Employee, or any
      corporation, partnership, association or their business entity which
      directly or indirectly is controlled or can have its acts affected by
      Employee or in which Employee has an investment.  Nothing
      contained in this Agreement shall be deemed to preclude Employee from
      purchasing or owning, directly or beneficially, as a passive investment,
      less than five percent (5%) of any class of publicly traded securities of
      any corporation so long as Employee does not actively participate in or
      control, directly or indirectly, any investment or other decisions with
      respect to such corporation.

            

    

    

    
      	
              6.2  

            	
              Confidentiality and
      Return of Company Documents.  Employee recognizes and
      acknowledges that by virtue of his/her employment with the Company, he/she
      will have access to certain trade secret and confidential information of
      the Company and that such information constitutes valuable, special and
      unique property of the Company, and derives economic value because it is
      not generally known to the public or to others who could benefit from its
      disclosure or use (“Trade Secrets”).  Trade Secrets include, but
      are not limited to, the following:

            

    

    

    
      	
              (a)  

            	
              customer
      and contact information such as customer lists and other information
      concerning particular needs, problems, likes or dislikes of the Company’s
      customers and contacts;

            

    

    
      	
              (b)  

            	
              the
      identities of the Company’s customers and
  contacts;

            

    

    
      	
              (c)  

            	
              price
      information, such as price lists, the contents of bids, and other
      information concerning costs or
profits;

            

    

    
      	
              (d)  

            	
              technical
      information, such as formulae, know-how, computer programs, software,
      source and object codes, secret processes or machines, inventions and
      research projects, documentation, or other methods or
      processes;

            

    

    
      	
              (e)  

            	
              business
      information relating to costs, profits, sales, markets, suppliers, plans
      for further development, market studies or
      research  projects;

            

    

    
      	
              (f)  

            	
              personnel
      or a compilation of data concerning the Company’s employees and
      independent contractors; and

            

    

    
      	
              (g)  

            	
              any
      other information valuable because of it private or confidential
      nature.

            

    

    

    Employee
agrees that during the term of employment, and for three years thereafter,
he/she will not reproduce, copy or disclose the Company’s Trade Secrets and
confidential business information to any person, firm, corporation, association
or other entity for any reason or purposes whatsoever, nor will Employee advise,
discuss or in any way assist any other person or firm (including customers or
former customers of the Company) in obtaining or learning about the Company’s
Trade Secrets.  Employee covenants and acknowledges that upon
separation from employment with the Company, he/she shall immediately surrender
to the Company all of the Company’s Trade Secrets and any and all such
documents, materials or other tangible items pertaining to these Trade Secrets
that he/she may possess and that such Trade Secrets shall be and remain the sole
property of the Company.  Employee agrees that if he/she is in doubt
as to whether any information, material, or document is a Trade Secret or is
confidential, he/she will contact the board of directors of the Company before
disclosing or using such information for any purpose other than in furtherance
of Employee’s duties as an employee of the Company.  Employee agrees
that it will not work for a company competing directly with the Company during
the term of his/her employment with the Company under this
Agreement.

    

    
      	
              6.3  

            	
              Solicitation of the
      Company’s Employees or Customers.  Employee agrees that
      at any time during the term of his/her employment and for three (3) years
      after that term he/she shall not solicit, directly or indirectly, any
      employees of the Company to leave employment by the Company to work for or
      with Employee or any competitor of Company nor solicit any of the
      Company’s customers or potential customers who were solicited by the
      Company within a twelve (12) month period immediately prior to the
      termination of Employee’s
engagement.

            

    

    

    
      	
              6.4  

            	
              Survival of
      Confidentiality and Non-Solicitation.  The requirements
      and covenants of this Section 6.2 and 6.3 shall survive and continue after
      the Term of Employment.  Employee recognizes and agrees that
      violation or threatened violation of any provision contained in this
      Section 6 will cause irreparable damage or injury to the Company and that
      the Company’s remedies at law for any breach of this Section 6 may not be
      adequate, and the exact amount of the Company’s damages in the event of
      such breach may be impossible to ascertain.  Therefore, the
      Company shall be entitled, as a matter of right, without further notice
      and without the necessity of posting bond thereof, to injunctive and other
      equitable relief restraining any threatened or further violation of this
      Section.  The Company’s right to an injunction shall be in
      addition to, and not in limitation of, any and other rights and remedies
      it may have against Employee, including, but not limited to, the recovery
      of damages.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              7.  

            	
              Notification to New
      Employer.

            

    

    

    If
Employee leaves the employ of the Company, Employee consents to the Company’s
notification to any new employer of Employee’s and Company’s rights and
obligations under this Agreement.

    

    
      	
              8.  

            	
              Severability

            

    

    

    Should
any term, provision, covenant or condition or this Agreement be held to be void
or invalid, the same shall not affect any other term, provision, covenant or
condition of this Agreement, but such remainder shall continue in full force and
effect as though each such voided term, provision, covenant or condition is not
contained herein.

    

    
      	
              9.  

            	
              Governing Law and
      Submission to Jurisdiction

            

    

    

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of Arizona.  Each of the parties submits to the exclusive
jurisdiction of any state or federal court sitting in Phoenix, Arizona in any
action or proceeding arising out of or relating to this Agreement and further
agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court and agrees not to bring any action or proceeding
arising out of or relating to this Agreement in any other court.  Each
party agrees that a final judgment in any action or proceeding so brought shall
be conclusive and may be enforced by suit on the judgment or in any other manner
so provided by law.

    

    
      	
              10.  

            	
              Binding
      Agreement

            

    

    

    This
Agreement shall inure to the benefit of and shall be binding upon the Company,
its successors and assigns.

    

    
      	
              11.  

            	
              Captions

            

    

    

    The
Section captions herein are inserted only as a matter of convenience and
reference and in no way define, limit or describe the scope of this Agreement or
the intent of any provisions hereof.

    

    
      	
              12.  

            	
              Entire
      Agreement

            

    

    

    This
Agreement (along with the Change-of-Control Agreement) contains the entire
agreement of the parties relating to the subject matter hereof, and the parties
hereto have made no agreements, representations or warranties relating to the
subject matter of this Agreement that are not set forth otherwise
herein.  This Agreement supersedes any and all prior agreements,
written or oral, with the Company.  Any such prior agreements are
hereby terminated and of no further effect and Employee, by the execution
hereof, agrees that any compensation provided for under any such prior
agreement(s) is specifically superseded and replaced by the provision of this
Agreement.  No modification of this Agreement shall be valid unless
made by the unanimous written consent of the board of directors of the
Company.  The parties hereto agree that in no event shall an oral
modification of this Agreement be enforceable or valid.

    

    
      	
              13.  

            	
              Notice

            

    

    

    All
notices and other communications under this Agreement shall be in writing
(including, without limitation, telegraphic, telex, telecopy or cable
communication) and mailed, telegraphed, telexed, telecopied, cabled or delivered
by hand or by nationally recognized courier service guaranteeing overnight
delivery to a party at the following address (or to such other address as such
party may have specified by notice given to the other party pursuant to this
provision):

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If to the
Company:

    

    IR
BioSciences Holdings, Inc. BioSciences, Inc.

    8767 E.
Via de Ventura, Suite # 190

    Scottsdale,
AZ  85258

    Attention:  Michael
K. Wilhelm

    

    With a
copy to:

    

    Kirkpatrick
& Lockhart, Nicholson, Graham LLP

    10100
Santa Monica Blvd., 7th
Floor

    Los
Angeles, CA  90067

    Attention:  Thomas
J. Poletti, Esq.

    

    If to
Employee:

    

    John
Fermanis                                       

    
      ____________________________

    ____________________________

    

    
      	
              14.  

            	
              Attorney’s
      Fees

            

    

    

    In the
event that any party shall bring an action, reference, arbitration or proceeding
in connection with the performance, breach or interpretation hereof, then the
prevailing party in such action, reference, arbitration or proceeding as
determined by the court or other body having jurisdiction shall be entitled to
recover from the losing party all reasonable costs and expenses of such action,
reference, arbitration or proceeding, including reasonable attorneys’ fees,
court costs, costs of investigation, expert witness fees and other costs
reasonably related to such proceeding.

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF, this Agreement is executed as of the day and year first above
written.

    

    

    “COMPANY”

    

    IR
BIOSCIENCES HOLDINGS, INC.

    a Delaware corporation

    

    

    By:           /s/ Michelle R.
Laroche                 
                                                      

    Michelle R. Laroche,
Secretary

    

    

    

    

    By:           /s/ Michael K.
Wilhelm                  
                                                      

    Michael K. Wilhelm, CEO

    

    

    

    And

     

     

    

    “EMPLOYEE”

    
 

     

    /s/ John
Fermanis                           
                                                      

    John Fermanis

    

    

    

     

    

    

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
A

    Discretionary
Award

    

    

     In
addition to Base Salary, the Employee shall be eligible to receive a quarterly
discretionary award based upon the Employee’s and the Company’s performance for
the preceding quarter of the Company’s fiscal year.  Such
discretionary award shall be in the form of Stock Options under the Company’s
2003 Stock Option, Deferred Stock and Restricted Stock Plan (the “Stock
Option”).

    

    Additionally, the Employee shall be
eligible to receive a quarterly grant of a five-year  option to
purchase up to 10,000
(ten thousand) shares of the Company’s Common Stock with an exercise
price equal to 85% of the fair market value of the Company’s Common Stock on the
date such option is issued (the “Options”).  The amount of Stock
Options constituting such grant  shall be determined by the
Compensation Committee of the Board of Directors in its sole
discretion.  Such grant shall be made as of the last day of the
applicable quarter provided that Employee is actively employed by the Company on
such date.

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