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China Valves Technology, Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the "Agreement") is made effective
as of June 27, 2013, between CHINA VALVES TECHNOLOGY, INC., a Nevada corporation
(the "Company") and Mr. Kaixiang Du (the "Executive"). 

1. EMPLOYMENT 

The Company hereby agrees to employ the Executive, and the
Executive hereby agrees to be employed by the Company, on the terms and
conditions set forth herein.

2. TERM 

The term ("Term") of this Agreement shall start on June 27,
2013 and will terminate on June 27, 2016 unless sooner terminated as hereinafter
provided.

3. POSITION AND DUTIES 

3.1 Position. The Executive hereby agrees to serve as Chief
Executive Officer of the Company. At the Company's request, the Executive may,
at the Executive's discretion, serve the Company and/or its respective
subsidiaries and affiliates in other offices and capacities in addition to the
foregoing, but shall not be required to do so. In the event that the Executive,
during the term of this Agreement, serves in any one or more of the
aforementioned capacities, the Executive's compensation shall not be increased
beyond that specified in Section 4 of this Agreement. In addition, in the event
the Company and the Executive mutually agree that the Executive shall terminate
the Executive's service in any one or more of the aforementioned capacities, or
the Executive's service in one or more of the aforementioned capacities is
terminated, the Executive's compensation, as specified in Section 4 of this
Agreement, shall not be diminished or reduced in any manner. 

3.2 Duties. The Company agrees that the duties that may be
assigned to the Executive shall be the usual and customary duties of the Chief
Executive Officer. 

3.3 Devotion of Time and Effort. Executive shall use
Executive's good faith best efforts and judgment in performing Executive's
duties as required hereunder and to act in the best interests of the Employers.
Executive shall devote such time, attention and energies to the business of the
Employers as are reasonably necessary to satisfy Executive's required
responsibilities and duties hereunder.

3.4 Other Activities. The Executive may engage in other
activities for the Executive's own account while employed hereunder, including
without limitation charitable, community and other business activities, provided
that such other activities do not materially interfere with the performance of
the Executive's duties hereunder. 

4. COMPENSATION AND RELATED MATTERS

4.1 Salary. During the Term, the Company shall pay the
Executive a salary of RMB 61,667 (approximately US$10,000) per month. The
Executive's performance and salary shall be subject to review at any time, and
an increase in salary, if one is so determined by the Board, shall be made, on a
basis consistent with the standard practices of the Company. 

4.2 Business Expenses. The Company shall promptly, in
accordance with Company policy, reimburse the Executive for all reasonable
business expenses incurred in accordance with and subject to the limits set forth in the Company's written policies with respect to
business expenses, upon presentation to the Company of written receipts for such
expenses.

1 

5. TERMINATION

5.1 Cause. The Company may terminate the Executive for Cause at
any time, upon written notice to Executive. For purposes of this Agreement,
"Cause" shall mean: 

(a) The Executive's conviction for commission of a felony or a
crime involving moral turpitude;

(b) The Executive's willful commission of any act of theft,
embezzlement or misappropriation against the Company; or 

(c) The Executive's material failure to perform his duties
hereunder. 

5.2 Termination Without Cause. The Company may terminate this
Agreement without Cause at any time, provided that the Company first delivers to
the Executive the Company's written election to terminate this Agreement at
least thirty (30) days prior to the effective date of termination. 

6. COMPENSATION UPON TERMINATION 

6.1 Termination for Cause. In the event the Executive's
employment shall be terminated for Cause pursuant to Section 5.1 hereof, the
Company shall pay the Executive his salary through the date of termination and
all and all stock options to purchase the Company's stock granted to the
Executive as of the date of termination and which have not vested prior to the
date of termination shall cease vesting. 

6.2 Termination without Cause, Termination by Mutual Agreement,
Disability or Death. In the event of a Termination without Cause pursuant to
Section 5.2, by mutual agreement of the parties hereto, or due to disability or
death of Executive, the Company shall pay the Executive through the date of
termination, and all stock options to purchase the Company's stock granted to
the Executive as of the Date of Termination and which have not vested prior to
the Date of Termination shall automatically become immediately exercisable by
the Executive on the Date of Termination and shall remain exercisable for a
period of five years from the date of termination.

7. CONFIDENTIALITY AND NON-SOLICITATION
COVENANTS 

7.1 Non-Competition. The Executive agrees that during the Term
of this Agreement prior to any termination of his employment hereunder and for a
period of two (2) years following the date on which the Executive's employment
hereunder is terminated, he will not directly or indirectly, without the prior
written consent of the Company, manage, operate, join, control, participate in,
or be connected as a stockholder (other than as a holder of shares publicly
traded on a stock exchange or the NASDAQ National Market System), partner, or
other equity holder with, or as an officer, director or employee of, any other
company whose business strategy is competitive with that of the Company, as
determined by a majority of the Company's independent directors ("Competing
Business").

7.2 Confidentiality. The Executive hereby agrees that the
Executive will not, during the Term or at any time thereafter directly or
indirectly disclose or make available to any person, firm, corporation,
association or other entity for any reason or purpose whatsoever, any
Confidential Information (as defined below). The Executive agrees that, upon
termination of his employment with the Company, all Confidential Information in
his possession that is in written or other tangible form (together with all
copies or duplicates thereof, including computer files) shall be returned to the
Company and shall not be retained by the Executive or furnished to any third
party, in any form except as provided herein; provided, however, that the
Executive shall not be obligated to treat as confidential, or return to the Company copies of any
Confidential Information that (i) was publicly known at the time of disclosure
to the Executive, (ii) becomes publicly known or available thereafter other than
by any means in violation of this Agreement or any other duty owed to the
Company by the Executive, or (iii) is lawfully disclosed to the Executive by a
third party. As used in this Agreement the term "Confidential Information" means
information disclosed to the Executive or known by the Executive as a
consequence of or through his relationship with the Company, about the owners,
employees, business methods, public relations methods, organization, procedures,
property acquisition and development, or finances, including, without
limitation, information of or relating to the Company and its affiliates. 

2 

7.3 Non-Solicitation. For a period of two (2) years following
the date on which the Executive's employment hereunder is terminated, the
Executive shall not solicit or induce any of the Company's employees, agents or
independent contractors to end their relationship with the Company, or recruit,
hire or otherwise induce any such person to perform services for the Executive,
or any other person, firm or company.

7.4 Return of Property. The Executive hereby acknowledges and
agrees that all Personal Property and equipment furnished to or prepared by the
Executive in the course of or incident to his employment, belongs to the Company
and shall be promptly returned to the Company upon termination of the Employment
Period. "Personal Property" includes, without limitation, all electronic devices
of the Company used by the Executive, including, without limitation, personal
computers, facsimile machines, cellular telephones, pagers and tape recorders
and all books, manuals, records, reports, notes, contracts, lists, blueprints,
maps and other documents, or materials, or copies thereof (including computer
files), and all other proprietary information relating to the business of the
Company. Following termination, the Executive will not retain any written or
other tangible material containing any proprietary information of the Company.

7.5 Reasonableness of Restrictions. Each of sections 7.1, 7.2,
and 7.3 set out above is acknowledged by Executive to be reasonable in duration,
extent and application and is the minimum protection necessary for the Company
in respect of its goodwill, Confidential Information, trade connections and
business. Each of the covenants and obligations on Executive’s part set out in
sections 7.1, 7.2, and 7.3 is deemed to be separate and severable and
enforceable by the Company accordingly. If any of the restrictions set out above
are held to be void but would be valid if part of the wording was deleted such
restriction shall apply with such deletion as may be necessary to make it valid
and effective. 

7.6 The restrictions set forth in Sections 7.1, 7.2, and 7.3
hereof shall not apply if the Executive's employment is terminated pursuant to
Section 5.4, 5.5 or 5.7 hereof or in the event that any form of compensation due
Executive pursuant to the provisions of Section 6 is not provided as required
when due. 

7.7 In the event of a breach by Executive of this Section 7,
any obligations for payment by the Company otherwise due pursuant to Section 5
hereof shall be void. 

8. GENERAL PROVISIONS 

8.1 Injunctive Relief and Enforcement. The Executive
acknowledges that the remedies at law for any breach by him of the provisions of
Section 7 hereof may be inadequate and that, therefore, in the event of breach
by the Executive of the terms of Section 7 hereof, the Company shall be entitled
to institute legal proceedings to enforce the specific performance of this
Agreement by the Executive and to enjoin the Executive from any further
violation of Section 7 hereof and to exercise such remedies cumulatively or in
conjunction with all other rights and remedies provided by law and not otherwise
limited by this Agreement.

8.2 Notice. For the purposes of this Agreement, notices,
demands and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given when addressed as follows
and (i) when personally delivered, (ii) when transmitted by telecopy, electronic
or digital transmission with receipt confirmed, (iii) one day after delivery to
an overnight air courier guaranteeing next day delivery, or (iv) upon receipt if
sent by certified or registered mail. In each case notice shall be sent to: 

3 

	 	If to Executive: 	Mr. Kaixiang Du 	 
	 	  	21F Kineer Plaza 	 
	 	  	226 Jinshui Road 	 
	 	  	Zhengzhou, Henan Province 	 
	 	  	People’s Republic of China 450008 	 
	 	  	  	 
	 	  	  	 
	 	If to the Company: 	China Valves Technology, Inc. 	 
	 	  	21F Kineer Plaza 	 
	 	  	226 Jinshui Road 	 
	 	  	Zhengzhou, Henan Province 	 
	 	  	People’s Republic of China 450008 	 
	 	  	Attn: Mr. Siping Fang, Chairman 	 

or to such other address as any party may have furnished to the
other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt. 

8.3 Severability. The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect. In addition, in the event any provision in this Agreement
shall be determined by any court of competent jurisdiction to be unenforceable
by reason of extending for too great a period of time or over too great a
geographical area or by reason of being too extensive in any other respect, each
such agreement shall be interpreted to extend over the maximum period of time
for which it may be enforceable and to the maximum extent in all other respects
as to which it may be enforceable, and enforced as so interpreted, all as
determined by such court in such action. 

8.4 Assignment. This Agreement may not be assigned by the
Executive, but may be assigned by the Company to any successor to its business
and will inure to the benefit and be binding upon any such successor.

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

8.6 Headings. The headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement. 

8.7 Choice of Law; Venue. This Agreement shall be construed,
interpreted and enforced in accordance with the laws of the State of Nevada
without giving effect to the principles of conflict of laws thereof. By
execution and delivery of this Agreement, the parties agree and accept that any
legal action or proceeding brought with respect to this Agreement shall be
brought in the court of appropriate jurisdiction in and for the County of Clark,
State of Nevada, and the parties expressly waive any objection to personal
jurisdiction, venue or forum non conveniens.

8.8 Entire Agreement. This Agreement contains the entire
agreement and understanding between the Company and the Executive with respect
to the employment of the Executive by the Company as contemplated hereby, and no
representations, promises, agreements or understandings, written or oral, not
herein contained shall be of any force or effect. This Agreement shall not be
changed unless in writing and signed by both the Executive and the Board. 

8.9 Amendments; Waivers. This Agreement may be amended or
modified, and any of the terms and covenants may be waived, only by a written
instrument executed by the parties hereto, or, in the case of a waiver, by the party waiving compliance. Any waiver by any
party in any one or more instances of any term or covenant contained in this
Agreement shall neither be deemed to be nor construed as a further or continuing
waiver of any such term or covenant of this Agreement. 

4 

IN WITNESS WHEREOF, the parties have executed this Employment
Agreement as of the date and year first above written. 

	 	“Company” 
	 	    
	 	CHINA VALVES TECHNOLOGY, INC., a Nevada
      corporation 
	 	  
	 	By: /s/ Siping
      Fang                  
       
	 	     Mr. Siping Fang, Chairman
    
	 	  
	 	“Executive” 
	 	  
	 	/s/ Kaixiang
      Du                         
       
	 	Mr. Kaixiang Du,CEO 

5Amended and Restated Employment Agreement - Bolduc  (M0524291.DOC;6)

 

 

 Exhibit 10.1
 

 AMENDED AND RESTATED EMPLOYMENT AGREEMENT
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), is made as of this 25th day of June, 2013 between Glenn D. Bolduc (“Executive”) and Implant Sciences Corporation (the “Company”), a Massachusetts corporation.
 
 1.
 Term of Employment. The Company hereby agrees to employ Executive, and Executive hereby accepts employment with the Company, upon the terms set forth in this Agreement, for the period commencing as of the date of this Agreement and ending on June 30, 2016, unless sooner terminated in accordance with the provisions of Section 5 or extended as hereinafter provided (such period, as it may be extended or terminated, is the “Agreement Term”). Beginning on July 1, 2016, this Agreement shall continue until either party provides the other with written notice of termination, such notice (except as otherwise provided in this Agreement) to take effect no less than ninety days after such notice.
 
 2.
 Title; Capacity. The Company will employ Executive, and Executive agrees to work for the Company, as its President and Chief Executive Officer to perform the duties and responsibilities inherent in such position and such other duties and responsibilities as the Company shall from time to time assign to Executive. Executive shall report to the Company’s Board of Directors (the “Board”) and shall be subject to the supervision of, and shall have such authority as is delegated by the Board, which authority shall be sufficient to perform Executive’s duties hereunder. Executive shall devote Executive’s full business time and reasonable best efforts in the performance of the foregoing services; provided, however, that Executive may accept other board memberships or service with other charitable organizations that are not in conflict with Executive’s primary responsibilities and obligations to the Company. 
 
 3.
 Compensation and Benefits.
 
 3.1
 Salary. The Company shall pay Executive a base salary of $15,384.62 every two weeks (i.e., at an annualized rate of $400,000 per year), payable in accordance with the Company’s customary payroll practices (the “Base Salary”). The Base Salary thereafter shall be subject to annual review and adjustment, as determined by the Board in its sole discretion, effective as of the first day of each fiscal year of the Company during the Agreement Term, provided, however, that the Base Salary may not be decreased without the Executive’s consent unless the compensation payable to all executives of the Company is similarly reduced. 
 
 3.2
 Annual Incentives. 
 
 (a)
 For the fiscal year ending June 30, 2013, Executive will be eligible to receive a cash bonus in an amount up to $200,000, such bonus to be determined by the Board in its sole discretion; provided, however, that no bonus shall be due or payable unless the 
 

 
 Company achieves the revenue and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets set forth in the Company’s fiscal 2013 operating budget as approved by the Board on June 19, 2012. 
 
 (b)
 For the fiscal year ending June 30, 2014 and subsequent fiscal years, Executive will be eligible to receive an annual cash bonus in an amount up to 50% of his annualized Base Salary in effect as of the last day of such fiscal year, each such bonus to be determined by the Board in its sole discretion based on the Company and the Executive each achieving certain objectives to be established by the Board in its sole discretion for the respective fiscal year; provided, however, that no bonus shall be due or payable with respect to any such fiscal year unless the Company achieves such revenue and adjusted EBITDA targets as may be established by the Board in its sole discretion for such fiscal year. The Board will use its reasonable efforts to establish such personal objectives and revenue and adjusted EBITDA targets for any fiscal year no later than 60 days following the beginning of such fiscal year. The bonus for any fiscal year, if payable, shall be calculated and paid within 30 days after the completion of the audit of the Company’s financial statements for such fiscal year.
 
 3.3
 Long-Term Incentives. The Executive will be eligible to receive such other long-term and/or incentive compensation as the Board may, in its sole discretion, award from time to time.
 
 3.4
 Fringe Benefits. Executive shall be entitled to participate in all bonus and benefit programs that the Company establishes and makes available to its executive employees, if any, to the extent that Executive’s position, tenure, salary, age, health and other qualifications make Executive eligible to participate, including, but not limited to, health care plans, short and long term disabilities plans, life insurance plans, retirement plans, and all other benefit plans from time to time in effect. Executive shall be entitled to take four weeks of fully paid vacation in accordance with Company policy. Executive shall be entitled to a monthly car allowance equal to $1,500.00 per month. The Company will reimburse Executive for the reasonable costs of one annual medical physical examination conducted at the Lahey Clinic, if and to the extent that such costs are not paid or reimbursed under the Company’s health care plans. 
 
 3.5
 Reimbursement of Certain Expenses. Executive shall be reimbursed for such reasonable and necessary business expenses incurred by Executive, in accordance with the Company’s reimbursement policy as it may be amended from time to time, while Executive is employed by the Company, which are directly related to the furtherance of the Company's business. The Executive must submit any request for reimbursement no later than 90 days following the date that such business expense is incurred and business expenses must be substantiated by appropriate receipts and documentation. The Company may request additional documentation or a further explanation to substantiate any business expense submitted for reimbursement, and retains the discretion to approve or deny a request for reimbursement. If a business expense reimbursement is not exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury regulations and other applicable guidance issued by the Treasury Department and/or the Internal Revenue Service thereunder (collectively, the “Code”), any reimbursement in one calendar year shall not affect the amount that may be reimbursed in any other calendar year and a reimbursement (or right thereto) may not be exchanged or liquidated for another benefit or payment. Any business expense reimbursements subject to 
 

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 Section 409A of the Code shall be made no later than the end of the calendar year following the calendar year in which such business expense is incurred by the Executive.
 
 3.6
 Indemnification. The Company shall indemnify Executive to the fullest extent permitted under applicable law, the Company’s Articles of Organization and the Company’s By-laws, each as they may be amended from time to time; provided, however, that the Company's Articles of Organization and By-laws shall not be amended after the date of this Agreement to adversely affect Executive’s indemnification rights in effect as of the date of this Agreement. Executive shall be insured under the Company’s Directors’ & Officers’ liability policy in the same manner as other senior executives of the Company for as long as Executive is an officer or director of the Company and as long as the Company maintains such policy in force. Such indemnity and insurance shall survive the termination of Executive’s employment by the Company. 
 
 3.7
 Certain Legal Fees. The Company shall be responsible for reasonable legal fees in connection with the negotiation, preparation or amendment of this Agreement.
 
 4.
 Termination of Employment Period. The Employment Period shall terminate upon the occurrence of any of the following:
 
 4.1
 Termination of the Agreement Term. At the expiration of the Agreement Term, but only if appropriate notice is given pursuant to Section 1.
 
 4.2
 Termination for Cause. At the election of the Company, for “Cause,” upon written notice by the Company to Executive. For the purposes of this Agreement, “Cause” for termination shall be deemed to exist upon the occurrence of any of the following:
 
 (a)
 Executive’s conviction or entry of nolo contendere to any felony or a crime involving moral turpitude, fraud or embezzlement of Company property; or
 
 (b)
 Executive’s dishonesty, gross negligence or gross misconduct that is materially injurious to the Company or material breach of his duties under this Agreement, which has not been cured by Executive within 10 days (or longer period as is reasonably required to cure such breach, negligence or misconduct) after he shall have received written notice from the Company stating with reasonable specificity the nature of such breach; or
 
 (c)
 Executive’s illegal use or abuse of drugs, alcohol, or other related substances that is materially injurious to the Company.
 

 4.3
 Voluntary Termination by the Company. At the election of the Company, without Cause, upon 30 days prior written notice by the Company to the Executive; provided, however, that, in lieu of such notice, the Company at its option may elect to relieve the Executive of his duties immediately and continue to pay the Executive his regular compensation and benefits during such 30-day period.
  
 4.4
 Death or Disability. As used in this Agreement, the determination of “disability” shall occur when Executive, due to a physical or mental disability, for a period of 90 
 

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 days in the aggregate whether or not consecutive, during any 360-day period, is unable to perform the services contemplated under this Agreement. A determination of disability shall be made by a physician satisfactory to both Executive and the Company; provided, however, that if Executive and the Company do not agree on a physician, Executive and the Company shall each select a physician and these two together shall select a third physician, whose determination as to disability shall be binding on all parties. Notwithstanding the foregoing, (i) Executive shall be deemed to have a “disability” if Executive receives any benefits under any long-term disability insurance policy, whether such policy is carried by the Company or by Executive; and (ii) if and only to the extent that Executive’s disability is a trigger for the payment of deferred compensation, as defined in Section 409A of the Code, “disability” shall have the meaning set forth in Section 409A(a)(2)(C) of the Code.
 
 4.5
 Termination for Good Reason. Subject to the notice and cure periods set forth in Section 5.5, at the election of Executive for “Good Reason” upon written notice by the Executive to the Company. For the purposes of this Agreement, “Good Reason” for termination shall be deemed to exist upon the occurrence of any of the following, without Executive’s written consent:
 
 (a) 
 a “material diminution” (as such term is used in Section 409A of the Code) of the duties assigned to Executive; 
 
 (b) 
 a material reduction in Base Salary or other benefits (other than a reduction or change in benefits generally applicable to all executive employees of the Company); or 
 
 (c) 
 relocation of Executive to an office more than 50 miles outside the Company’s current location in the greater Boston area. 
 Notwithstanding the occurrence of any of the events enumerated in this Section 4.5, no event or condition shall be deemed to constitute Good Reason unless (i) Executive reports the event or condition which the Executive believes to be Good Reason to the Board, in writing, within 45 days of such event or condition occurring and (ii) within 30 days after the Executive provides such written notice of Good Reason, the Company has failed to fully correct such Good Reason and to make the Executive whole for any such losses.
 
 4.6
 Voluntary Termination by Executive. At the election of Executive, without Good Reason, upon not less than 30 days prior written notice by him to the Company.
 
 5.
 Effect of Termination.
 
 5.1
 Termination for Cause, at the Election of Executive, at Death or Disability, or Upon Expiration of the Agreement Term. In the event that Executive’s employment is terminated for Cause, the Company shall have no further obligations under this Agreement other than to pay to Executive Base Salary and accrued vacation through the last day of Executive’s actual employment by the Company. In the event that Executive’s employment is terminated upon Executive’s death or disability, at the election of Executive, or upon the expiration of the Agreement Term, the Company shall have no further obligations under this Agreement other than (i) to pay to Executive Base Salary and accrued vacation through the last 
 

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 day of Executive’s actual employment by the Company and (ii) to pay to Executive, in a single lump sum, a pro rata portion of any bonus (to the extent earned prior to such termination) for the year in which termination occurs; provided, however, that the Company shall determine, in its sole discretion, when such payment will be made during such period. 
 
 5.2
 Voluntary Termination by the Company, or for Good Reason. In the event that Executive’s employment is terminated by the Company without Cause, or by Executive’s resignation for Good Reason, then, in addition to the benefits provided by Section 5.4, but subject to the conditions set forth in Section 5.5, beginning immediately after the date of such termination, the Company shall continue to pay to Executive the annual Base Salary then in effect for 18 months on a regular payroll basis, and each such payment shall constitute a separate payment for the purposes of Section 409A of the Code. In addition if Executive’s resignation is for Good Reason, then all stock options and shares of restricted stock then held by Executive shall be accelerated and become fully vested and exercisable as of the date of such resignation. 
 
 5.3
 Voluntary Termination by the Company Following a Change of Control. In the event that (x) a “Change of Control” (as such term is defined in the Company’s Change of Control Plan, as adopted by the Board on September 7, 2012 and as the same may be amended from time to time) occurs and (y) within 12 months thereafter, Executive’s employment is terminated by the Company without Cause, or by Executive’s resignation for Good Reason, (i) then, in addition to the benefits provided by Section 5.4, but subject to the conditions set forth in Section 5.5, beginning immediately after the date of such termination, the Company shall continue to pay to Executive the annual Base Salary then in effect for 36 months on a regular payroll basis, and each such payment shall constitute a separate payment for the purposes of Section 409A of the Code and (ii) all stock options and shares of restricted stock then held by Executive shall be accelerated and become fully vested and exercisable as of the date of Executive’s termination. 
 
 5.4
 Additional Benefits. In addition to the amounts payable to Executive following a termination of employment pursuant to Section 5.2 or 5.3, as the case may be, but subject to the conditions set forth in Section 5.5, the Company shall also pay Executive in a single lump sum, a pro rata portion of any bonus (to the extent earned prior to such termination) for the year in which termination occurs; provided, however, that the Company shall determine, in its sole discretion, when such payment will be made during such period. In addition, the Company shall continue Executive’s coverage under and its contributions towards Executive’s health care, dental, life insurance benefits on the same basis as immediately prior to the date of termination, except as provided below, for 12 months from the last day of Executive’s employment. Notwithstanding the foregoing, subject to any overriding laws, the Company shall not be required to provide any health care, dental, disability or life insurance benefit otherwise receivable by Executive if Executive is actually covered or becomes covered by an equivalent benefit (at the same cost to Executive, if any) from another source. Any such benefit made available to Executive shall be reported to the Company. 
 
 5.5
 Conditions to Salary Continuation and Other Benefits. Notwithstanding anything to the contrary in Sections 5.2, 5.3 or 5.4, no salary continuation benefits shall be payable under Section 5.2 or 5.3, and the Company shall not be obligated to make any contributions towards Executive’s health care, dental, disability or life insurance benefits under 
 

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 this 5.4, unless and until (x) Executive executes a release in favor of the Company substantially in the form annexed hereto as Exhibit A and (y) the period in which Executive is entitled to revoke such election has expired without any such revocation; and (ii) and no portion of any bonus shall be due or payable under Section 5.4 unless (x) Executive shall have executed such release on or before the end of the 60-day period following termination of Executive’s employment and (y) the period in which Executive is entitled to revoke such election has expired without any such revocation. Notwithstanding any other provision with respect to the timing of payments under Section 5.2, 5.3 or 5.4, if, at the time of the Executive’s termination, the Executive is deemed to be a “specified employee” of the Company within the meaning of Section 409A(a)(2)(B)(i) of the Code, then only to the extent necessary to comply with the requirements of Section 409A of the Code, any payments to which the Executive may become entitled under Section 5.2, 5.3 or 5.4 which are subject to Section 409A of the Code (and not otherwise exempt from its application) will be withheld until the first business day of the seventh month following the date of termination, at which time the Executive shall be paid an aggregate amount equal to six months of payments otherwise due to the Executive under the terms of Section 5.2, 5.3 or 5.4, as applicable. After the first business day of the seventh month following the date of termination and continuing each month thereafter, the Executive shall be paid the regular payments otherwise due to the Executive in accordance with the terms of Section 5.2, 5.3 or 5.4, as thereafter applicable. 
 
 5.6
 Key-Man Insurance. In the event that Executive’s employment is terminated by the Company, for any reason (including Cause) or for no reason, or by Executive’s voluntary resignation, the Company shall, subject to the approval of the insurer,  promptly take all steps reasonably necessary to transfer to Executive ownership of any key-man life insurance policy then owned by the Company insuring Executive’s life (other than any interest Executive may have in any group life policy); provided, however, that the Company shall have no obligation to pay any premium or other amount which may become due with respect to any such policy after the date of such termination. 
 
 5.7
 Compliance with Section 409A. The provisions of this Section 5 and the payments provided hereunder are intended to be exempt from or to comply with the requirements of Section 409A of the Code, and shall be interpreted and administered consistent with such intent. To the extent required for compliance with Section 409A, references in this Agreement to a “termination of employment” shall mean a “separation of service” as defined by Section 409A. 
 
 6.
 Nondisclosure and Noncompetition.
 
 6.1
 Proprietary Information.
 
 (a)
 Executive agrees that all information and know-how, whether or not in writing, of a private, secret or confidential nature concerning the Company’s business or financial affairs (collectively, “Proprietary Information”) is and shall be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include inventions, products, processes, methods, techniques, formulas, designs, drawings, slogans, tests, logos, ideas, practices, projects, developments, plans, research data, financial data, personnel data, computer programs and codes, and customer and supplier lists. Executive will not disclose any Proprietary Information to others outside the Company except in the performance of his 
 

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 duties or use the same for any unauthorized purposes without written approval by an officer of the Company, either during or after his employment, unless and until such Proprietary Information has become public knowledge or generally known within the industry without fault by Executive, or unless otherwise required by law.
 
 (b)
 Executive agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings, or other written, photographic, electronic or other material containing Proprietary Information, whether created by Executive or others, which shall come into his custody or possession, shall be and are the exclusive property of the Company to be used by Executive only in the performance of his duties for the Company.
 
 (c)
 Executive agrees that his obligation not to disclose or use information, know-how and records of the types set forth in paragraphs (a) and (b) above, also extends to such types of information, know-how, records and tangible property of subsidiaries and joint ventures of the Company, customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to Executive in the course of the Company’s business.
 
 6.2
 Inventions
 
 
 (a)
 Disclosure. Executive shall disclose promptly to an officer or to attorneys of the Company in writing any idea, invention, work of authorship, whether patentable or unpatentable, copyrightable or uncopyrightable, including, but not limited to, any computer program, software, command structure, code, documentation, compound, genetic or biological material, formula, manual, device, improvement, method, process, discovery, concept, algorithm, development, secret process, machine or contribution (any of the foregoing items hereinafter referred to as an “Invention”) Executive may conceive, make, develop or work on, in whole or in part, solely or jointly with others. The disclosure required by this Section applies (a) to any invention related to the general line of business engaged in by the Company or to which the Company planned to enter during the period of Executive’s employment with the Company and for one year thereafter; (b) with respect to all Inventions whether or not they are conceived, made, developed or worked on by Executive during Executive’s regular hours of employment with the Company; (c) whether or not the Invention was made at the suggestion of the Company; and (d) whether or not the Invention was reduced to drawings, written description, documentation, models or other tangible form. 
 
 (b)
 Assignment of Inventions to Company; Exemption of Certain Inventions. Executive hereby assigns to the Company without royalty or any other further consideration Executive’s entire right, title and interest in and to all Inventions which Executive conceives, makes, develops or works on during employment and for one year thereafter, except as limited by 6.2(a) above and those Inventions that Executive develops entirely on Executive’s own time after the date of this Agreement without using the Company’s equipment, supplies, facilities or trade secret information unless those Inventions either (a) relate at the time of conception or reduction to practice of the Invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company; or (b) result from any work performed by Executive for the Company. 
 

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 (c)
 Records. Executive will make and maintain adequate and current written records of all Inventions. These records shall be and remain the property of the Company.
 
 (d)
 Patents. Executive will assist the Company in obtaining, maintaining and enforcing patents and other proprietary rights in connection with any Invention covered by Section 6.2. Executive further agrees that his obligations under this Section shall continue beyond the termination of his employment with the Company, but if he is called upon to render such assistance after the termination of such employment, he shall be entitled to a fair and reasonable rate of compensation for such assistance. Executive shall, in addition, be entitled to reimbursement of any expenses incurred at the request of the Company relating to such assistance.
 
 6.3
 Prior Contracts and Inventions; Information Belonging to Third Parties. Executive represents that there are no contracts to assign Inventions between any other person or entity and Executive. Executive further represents that (a) Executive is not obligated under any consulting, employment or other agreement which would affect the Company’s rights or my duties under this Agreement, (b) there is no action, investigation, or proceeding pending or threatened, or any basis therefor known to me involving Executive’s prior employment or any consultancy or the use of any information or techniques alleged to be proprietary to any former employer, and (c) the performance of Executive’s duties as an employee of the Company will not breach, or constitute a default under any agreement to which Executive is bound, including, without limitation, any agreement limiting the use or disclosure of proprietary information acquired in confidence prior to engagement by the Company. Executive will not, in connection with Executive’s employment by the Company, use or disclose to the Company any confidential, trade secret or other proprietary information of any previous employer or other person to which Executive is not lawfully entitled. 
 
 6.4
 Noncompetition and Nonsolicitation.
 
 (a)
 During the Employment Period and for a period of 12 months after the termination of Executive’s employment with the Company for any reason or for no reason, Executive will not directly or indirectly, absent the Company’s prior written approval, render services of a business, professional or commercial nature to any other person or entity in the area of trace explosives detection, surface modification services to the medical device and semiconductor industries or such other services or products provided by the Company at the time employment terminates in any geographical area where the Company does business at the time this covenant is in effect, whether such services are for compensation or otherwise, whether alone or in conjunction with others, as an employee, as a partner, or as a shareholder (other than as the holder of not more than 1% of the combined voting power of the outstanding stock of a public company), officer or director of any corporation or other business entity, or as a trustee, fiduciary or in any other similar representative capacity.
 
 (b)
 During the Employment Period and for a period of 12 months after the termination of Executive’s employment for any reason or for no reason, Executive will not, directly or indirectly, recruit, solicit or induce, or attempt to recruit, solicit or induce any 
 

  
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 employee or employees of the Company to terminate their employment with, or otherwise cease their relationship with, the Company.
 
 (c)
 During the Employment Period and for a period of twelve (12) months after termination of Executive’s employment for any reason or for no reason, Executive will not, directly or indirectly, contact, solicit, divert or take away, or attempt to solicit, contact, divert or take away, the business or patronage of any of the clients, customers or accounts, or prospective clients, customers or accounts, of the Company.
 
 6.5
 If any restriction set forth in this Section is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.
 
 6.6
 The restrictions contained in this Section are necessary for the protection of the business and goodwill of the Company and are considered by Executive to be reasonable for such purpose. Executive agrees that any breach of this Section will cause the Company substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Company shall have the right to seek specific performance and injunctive relief. The prevailing party shall be entitled to recover its reasonable attorneys’ fees in such an action. In addition, the Company’s obligation to pay Executive the amounts set fourth in Sections 5.2, 5.3 and/or 5.4 shall terminate in the event Executive materially breaches any terms and conditions in Section 6. If the Company breaches its obligation to pay Executive the amounts due hereunder, Executive’s obligations in this Section 6 shall terminate.
 
 7.
 Entire Agreement. This Agreement amends and restates, it its entirety, the Employment Agreement dated as of February 6, 2009 between the Company and the Executive. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral relating to the subject matter of this Agreement, including without limitation the employment agreement dated as of July 31, 2008 between the Company and the Executive.
 
 8.
 Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and Executive.
 
 9.
 Governing Law; Waiver of Jury Trial. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the Commonwealth of Massachusetts without regard to principles of conflicts of laws thereunder. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
 
 10.
 Notices. Any notice or other communication required or permitted by this Agreement to be given to a party shall be in writing and shall be deemed given if delivered personally or by commercial messenger or courier service, or mailed by U.S. registered or 
 

  
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 certified mail (return receipt requested), or sent via facsimile (with receipt of confirmation of complete transmission) to the party at the party’s last known address or facsimile number or at such other address or facsimile number as the party may have previously specified by like notice. If by mail, delivery shall be deemed effective three business days after mailing in accordance with this Section.
 
 11.
 Successors and Assigns.
 
 11.1
 Assumption by Successors. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to assume in writing prior to such succession and to agree to perform its obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Successions by virtue of the sale of stock shall be governed by operation of law.
 
 11.2
  Successor Benefits. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any corporation into which the Company may be merged or which may succeed to its assets or business, provided, however, that the obligations of Executive are personal and shall not be assigned by him.
 
 12.
 Miscellaneous.
 
 12.1
 No Waiver. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.
 
 12.2
 Severability. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.
 
 12.3
 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
 12.4 Withholding. All payments made by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company pursuant to applicable law. 
 

 [SIGNATURE PAGE TO FOLLOW]
 

 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above.
 

 By: /s/ Glenn D. Bolduc 
 Glenn D. Bolduc
 

 Date executed: June 25, 2013
 

 

 IMPLANT SCIENCES CORPORATION
 

 

 By: /s/ Michael C. Turmelle
 Michael C. Turmelle
Chairman, Compensation Committee
 of the Board of Directors
 

 Date executed: June 25, 2013
 

  
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 Exhibit A
 

 1.
 Your Release of Claims. By signing this Agreement, you hereby agree and acknowledge that, for good and valuable consideration, you are waiving your right to assert any and all forms of legal claims against the Company1/ of any kind whatsoever, whether known or unknown, arising from the beginning of time through the date you execute this Agreement (the “Execution Date”). Except as set forth below, your waiver and release herein is intended to bar any form of legal claim, complaint or any other form of action (jointly referred to as “Claims”) against the Company seeking any form of relief including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages, or any other form of monetary recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys fees and any other costs) against the Company, for any alleged action, inaction or circumstance existing or arising through the Execution Date.
 

 Without limiting the foregoing general waiver and release, you specifically waive and release the Company from any Claim arising from or related to your prior employment relationship with the Company or the termination thereof, including, without limitation:
 

 **
 Claims under any state or federal discrimination, fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through the Execution Date) prohibiting discrimination or harassment based upon any protected status including, without limitation, race, national origin, age, gender, marital status, disability, veteran status or sexual orientation. Without limitation, specifically included in this paragraph are any Claims arising under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Americans With Disabilities Act and any similar Federal and state statute.
 

 **
 Claims under any other state or federal employment related statute, regulation or executive order (as they may have been amended through the Execution Date) relating to wages, hours or any other terms and conditions of employment. 
 

 **
 Claims under any state or federal common law theory including, without limitation, wrongful discharge, breach of express or implied contract, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation, deceit, fraud or negligence.
 

 **
 Any other Claim arising under state or federal law.
 1/
  For purposes of this Agreement, the Company includes the Company and any of its divisions, affiliates (which means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company), subsidiaries and all other related entities, and its and their directors, officers, employees, trustees, agents, successors and assigns.
 

  
 12
 

 

 
 

 You acknowledge and agree that, but for providing this waiver and release, you would not be receiving the economic benefits being provided to you under the terms of this Agreement. You further acknowledge that this release does not waive any claims you cannot by law waive and does not release any claims that arise after its execution.
 

 It is the Company’s desire and intent to make certain that you fully understand the provisions and effects of this Agreement. To that end, you have been advised and given the opportunity to consult with legal counsel for the purpose of reviewing the terms of this Agreement. Also, because you are over the age of 40, the Age Discrimination in Employment Act (“ADEA”), which prohibits discrimination on the basis of age, allows you at least 21 days to consider the terms of this Agreement. ADEA also allows you to rescind your assent to this Agreement if, within seven days after you sign this Agreement, you deliver by hand or send by mail (certified, return receipt and postmarked within such seven-day period) a notice of rescission to the Company. The eighth day following your signing of this Agreement is the Effective Date.
 

 Also, consistent with the provisions of Federal law, nothing in this release shall be deemed to prohibit you from challenging the validity of this release under the discrimination laws (the “Federal Discrimination Laws”) or from filing a charge or complaint of employment-related discrimination with the Equal Employment Opportunity Commission (“EEOC”) or any state fair employment practices agency, or from participating in any investigation or proceeding conducted by the EEOC or any state fair employment practices agency. Further, nothing in this release or Agreement shall be deemed to limit the Company’s right to seek immediate dismissal of such charge or complaint on the basis that your signing of this Agreement constitutes a full release of any individual rights under the Federal Discrimination Laws, or to seek restitution to the extent permitted by law of the economic benefits provided to you under this Agreement in the event that you successfully challenge the validity of this release and prevail in any claim under the Federal Discrimination Laws.
 

 

 By:__________________________

 Employee

 Date signed: _____________
 

 Endnotes
 

 

 

  
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