Document:

ex10-i.htm

Exhibit 10(i)

[THIS AGREEMENT IS SUBJECT TO ARBITRATION]

AMENDED AND RESTATED EMPLOYMENT, CONFIDENTIALITY, AND NON-COMPETITION AGREEMENT

THIS AGREEMENT dated and effective as of the 18th day of March, 2013 by and between Interphase Corporation, a Texas corporation (the “Company”), and Thomas N. Tipton, Jr., (“Executive.”).  The Company’s principal place of business is located at 2901 North Dallas Parkway, Suite 200, Plano, TX   75093.

WHEREAS, the Company and Executive are parties to that certain Employment, Confidentiality, and Non-Competition Agreement dated March 18, 2013, which sets forth the terms and conditions of the Executive’s employment with the Company; and

 

WHEREAS, the Company and Executive desire to amend and restate such agreement on the terms and conditions set forth herein in a manner intended to take into account the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”);

 

NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants and promises hereinafter contained, do hereby agree as follows:

 

Background Statement

 

The Company enables rapid platform design and integration for the global voice and data communications markets through custom and off-the-shelf communications equipment, embedded software development suites, and systems integration and consulting services for telecom and enterprise networks.  Executive desires to continue to be employed by the Company.  The Company desires to continue to employ Executive under the terms and conditions of this Agreement.

 

This Agreement sets forth the terms of Executive’s employment.  The parties agree that this Agreement is supported by valuable consideration, that mutual promises and obligations have been undertaken by the parties to it, and that the agreement is entered into voluntarily by the parties.

 

Statement of Agreement

 

	
1.

	
Duties.  Executive shall devote Executive’s best efforts to the business of the Company.  Executive shall perform such duties and responsibilities customary to the position of Chief Financial Officer and Vice President of Finance, including those described on Exhibit A to this Agreement.  Executive shall also perform those duties assigned by the Company from time to time.

 

  

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2.

	
Terms.  The “initial term” of employment under this Agreement, as amended and restated, shall terminate on June 19, 2013, the end of the current term of this Agreement.  The initial term of this amended and restated Agreement shall automatically renew for successive six (6) month periods, referred to as “successor terms,” unless either party gives thirty (30) days written notice of its intention not to renew prior to the expiration of the initial or any successor term or Executive is terminated for Cause (as described in Paragraph 3(c) of this Agreement).

 

	
3.

	
Terminable For Cause or on Account of Death or Disability.  This Agreement may be terminated by the Company prior to the expiration of the initial term or any successor term as follows:

 

	
  

	
(a)

	
Due to the death of Executive;

 

	
  

	
(b)

	
Due to a physical or mental disability which prevents Executive from performing the essential functions of his full duties for a period of ninety (90) consecutive days during the term of this Agreement, as determined in good faith by a physician reasonably acceptable to the Company; or,

 

	
  

	
(c)

	
For Cause, which is (i) fraud, misappropriation, embezzlement, dishonesty, or other act of material misconduct against the Company or any affiliate of the Company; (ii) failure to perform specific and lawful directives of Executive’s superiors; (iii) violation of any rules or regulations of any governmental or regulatory body, which is materially injurious to the financial condition of the Company; (iv) conviction of or plea of guilty or nolo contendere to a felony; (v) violation of the provisions of Paragraphs 8, 9, 10, 11, 13, or 16; or, (vi) substantial failure to perform the duties and responsibilities of Executive under this Agreement.

 

In the event of termination under this Paragraph 3, Executive shall be entitled only to Executive’s base salary earned through the date of termination paid in accordance with the Company’s normal payroll practices.  No accrued but unpaid bonuses or commissions shall be due to Executive.

 

  

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4.

	
Termination Without Cause or Nonrenewal.

 

	
  

	
(a)

	
In the event (i) the Company gives Executive thirty (30) days written notice of its intention not renew a term of this Agreement pursuant to the provisions of Paragraph 2 and at the time the term of this Agreement expires as a result of such notice, Executive is willing and able to execute a new agreement containing terms and conditions substantially similar to those in this Agreement and to continue to provide services to the Company substantially similar to the services provided at the time the term expires, or (ii) Executive is terminated during a term of this Agreement without Cause (the Company intends that the occurrence of either event described in clause (i) or clause (ii) of this sentence be considered an involuntary separation of Executive’s service), the Executive shall receive: (A) the balance of base salary due under this Agreement for the balance of its term on the regular pay dates of the Company (the “Remaining Term Payments”) and thereafter, (B) subject to the Executive’s execution of a general release of claims and covenant not to sue in a form acceptable to the company (the “Release”), severance pay based on Executive’s monthly base salary at the time of termination in an amount equal to twelve (12) months of such monthly base salary, payable in bi-weekly installments in accordance with the Company’s normal payroll practices (the “Severance Payments”).  In addition, if Executive is eligible for Severance Payments and has executed a Release, and in connection with Executive’s termination of employment Executive is eligible for and timely elects to continue Executive’s coverage under the Company’s group health plan pursuant to Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) and Section 601 et.esq. of the Employee Retirement Income Security Act of 1974, as amended (“COBRA Coverage”), the Company will pay to continue the coverage of Executive’s dependents who are eligible for COBRA Coverage as a result of Executive’s termination of employment (the “Qualified Beneficiaries”), the Corporation will pay the premium cost for COBRA Coverage for the Executive and for the Qualified Beneficiaries for the 18-month period following the Executive’s termination of employment or such shorter period during which the Executive (or with respect to any of the Qualified Beneficiaries, such Qualified Beneficiary) continues to be eligible for COBRA Coverage.  The costs of such COBRA Coverage will be imputed as income to the Executive and reported on Form W-2 or other applicable tax information return.

 

	
  

	
(b)

	
The Company shall begin payment of the Severance Payments on the first regularly scheduled payroll date of the Company occurring after completion of the Remaining Term payments, if any, provided Executive has executed and delivered the Release to the Company prior to such date (and not revoked the Release during the applicable revocation period).  Notwithstanding any provision in the preceding sentence to the contrary, if the Severance Payments would be considered “non-qualified deferred compensation” under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the payment of Severance Payments shall commence, subject to the provisions of Paragraph 20(b), on the first regularly scheduled payroll date of the Company following the later of (i) sixty (60) days following Executive’s date of termination or (ii) completion of the Remaining Term Payments; provided Executive has executed and delivered the Release to the Company prior to such date (and not revoked the Release during the applicable revocation period).  The form of the Release will be provided to the Executive not later than five (5) days following Executive’s date of termination.  All Remaining Term Payments and Severance Payments must in all cases be made no later than the last day of the second calendar year following the calendar year in which Executive terminates employment.

 

	
  

	
(c)

	
The Executive will also be entitled to a lump sum bonus payment equal to the greater of the previous year’s actual bonus payment or the bonus plan target for the current year (based upon the Executive Compensation Plan approved by the Compensation Committee of the Board of Directors) payable in a lump sum cash payment within thirty (30) days following Executive’s termination of employment under this Paragraph 4. No other severance payment or benefits shall be due Executive other than those provided for under this Agreement.

 

  

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5.

	
Compensation.  Employer shall pay and provide benefits to Executive according to the provisions of Executive’s compensation plan described in the attached Exhibit B.  Executive’s compensation plan shall be reviewed on a periodic basis.  The Company reserves the right, and Executive hereby authorizes Company, to make deductions from Executive’s pay or bonuses to satisfy any outstanding obligations of Executive to the Company.   The Company may offset against the final payment of wages or bonuses owed to Executive any amounts due the Company from Executive; provided, however, no such offset shall be made against any amount in excess of $5,000 that would be considered “non-qualified deferred compensation” under Section 409A of the Code.

 

	
6.

	
Changes in Position, Location, or Compensation.  If the Company transfers, promotes, or reassigns Executive to another position or geographic area, or both parties agree to a change in compensation or benefits during a term of this Agreement or upon the renewal of a term of this Agreement, an updated employment agreement may be substituted by agreement of the parties but is not required.  Mutually-agreeable changes in compensation or benefits shall be effected by amendment to and incorporation of a modified Exhibit B, initialed by the parties or their authorized representative.  All provisions, promises, terms or conditions not modified by an amendment of Exhibits A - C shall remain in effect and shall not be deemed revoked or modified beyond the changes set forth in one or more amended Exhibits.  Notwithstanding the preceding, any changes or amendments to this Agreement shall be consistent with the provisions of Sections 20 and 21 hereof.

 

	
7.

	
Executive Representation/Warranty.  Executive represents that Executive is not a party to any agreement with a third party, or limited by a court order, containing a non-competition provision or other restriction which would preclude Executive’s employment with Company or any of the services which Executive will provide on the Company’s behalf.

 

	
8.

	
Duty of Loyalty.  Executive acknowledges the common law duties of reasonable care, loyalty, and honesty which arise out of the principal/agent relationship of the parties.  While employed and thereafter for whatever term the law may impose, Executive shall not engage in any activity to the detriment of the Company.  By way of illustration and not as a limitation, Executive shall not discuss with any customer or potential customer of the Company any plans by Executive or any other Executives of the Company to leave the employment of the Company and compete with the Company.

 

	
9.

	
Company Documents.  Executive agrees and acknowledges that Executive holds as the Company’s property all memoranda, books, papers, letters, and other data, including duplicates, relating to the Company’s business and affairs (“Company Documents”).  This includes Company Documents created or used by Executive or otherwise coming into Executive’s possession in connection with the performance of Executive’s job duties.  All Company Documents in the possession, custody, or control of Executive shall be returned to the Company at the time of termination of employment.

 

  

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Confidential Information and Non-Competition

 

	
10.

	
In exchange for the mutual promises and obligations contained in this Agreement, and contemporaneous with its execution or soon thereafter, Employer promises to deliver to Executive or permit Executive to acquire, be exposed to, and/or have access to material, data, and information of the Company and/or its customers or clients that is confidential, proprietary and/or a trade secret (“Confidential Information”).  At all times, both during and after the termination of employment, the Executive shall keep and retain in confidence and shall not disclose, except as required in the course of the Executive’s employment with the Company, to any person, firm or corporation, or use for the Executive’s own purposes, any Confidential Information.  For the purposes of this Paragraph, such information shall include, but is not limited to:

 

	
  

	
(a)

	
The Company’s standard operating procedures, processes, formulae, know-how, scientific, technical, or product information, whether patentable or not, which is of value to the Company and not generally known by the Company’s competitors;  

 

	
  

	
(b)

	
All confidential information obtained from third parties and customers concerning their products, business, or equipment specifications;

 

	
  

	
(c)

	
Confidential business information of the Company, including, but not limited to,  marketing and business plans, strategies, projections, business opportunities, client identities or lists, sales and cost information, internal financial statements or reports, profit, loss, or margin information, customer price information; and,

 

	
  

	
(d)

	
Other information designated by the Company or deemed by law to be confidential information.

 

	
11.

	
Non-Competition.  In consideration of the mutual promises contained in this Agreement, the sufficiency of which is acknowledged by the parties, Executive agrees that during the term of his employment and for a period of twelve (12) calendar months after termination of employment from the Company (whether voluntary or involuntary), Executive shall not, directly or indirectly, either as principal, agent, manager, employee, partner, shareholder, director, officer, consultant or otherwise:

 

	
  

	
(a)

	
Become associated or affiliated with, employed by, or financially interested in any business operation which competes in the business currently engaged in by Company.  (The phrase “business currently engaged in by the Company” includes, but is not limited to, the type of activities in which the Company was engaged during Executive’s tenure, such as designs and delivers high performance connectivity adapters for computer and telecommunication networks.)

 

  

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(b)

	
Solicit or attempt to solicit the business or patronage of any person, firm, corporation, partnership, association, department of government or other entity with whom the Company has had any contact during a period of  twelve (12) calendar months preceding the date of this Agreement (“Customers”), or otherwise induce such Customers to reduce, terminate, restrict or otherwise alter business relationships with the Company in any fashion; or,

 

	
  

	
(c)

	
In any way solicit or attempt to solicit the business or patronage of any Customers.

 

	
  

	
(d)

	
The parties intend the above restrictions on competition to be completely severable and independent, and any invalidity or unenforceability of any one or more such restrictions shall not render invalid or unenforceable any one or more restrictions.

 

	
12.

	
Limitations on Scope.  In recognition of the broad geographic scope of the Company’s business and the ease of competing with the Company in any part of the United States, the restrictions on competition set forth herein are intended to cover the following geographic areas:

 

	
  

	
(a)

	
The geographic territory identified on the attached Exhibit C;

 

	
  

	
(b)

	
The cities containing a facility or operation owned or managed by the Company; and,

 

	
  

	
(c)

	
A fifty (50) mile radius outside the boundary limits of each such city.

 

The parties intend the above geographical areas to be completely severable and independent, and any invalidity or unenforceability of this Agreement with respect to any one area shall not render this Agreement unenforceable as applied to any one or more of the other areas.

 

	
13.

	
Non-Solicitation of Employees.  During employment and for a period of twelve (12) months after termination, Executive agrees not to hire, employ, solicit, divert, recruit, or attempt to induce, directly or indirectly, any existing or future employee of the Company to leave their position with the Company or to become associated with a competing business.

 

Remedies for Breach

 

	
14.

	
Company’s Right to Obtain an Injunction.  Executive acknowledges that the Company will have no adequate means of protecting its rights under Paragraphs 10, 11, 12, or 13 of this Agreement other than be securing an injunction (a court order prohibiting the Executive from violating the Agreement).  Accordingly, the Executive agrees that the Company is entitled to enforce this Agreement by obtaining a temporary, preliminary, and permanent injunction and any other appropriate equitable relief.  Executive acknowledges that the Company’s recovery of damages will not be an adequate means to redress a breach of this Agreement.  Nothing contained in this Paragraph, however, shall prohibit the Company from pursuing any remedies in addition to injunctive relief, including recovery of damages.  Executive expressly acknowledges that the Company has sole discretion regarding whether to seek a remedy for breaches of Paragraphs 10, 11, 12, or 13 in a court of competent jurisdiction or by arbitration procedures outlined in Paragraph 15.

 

  

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15.

	
Arbitration.  Executive and the Company agree that any unresolved dispute or controversy involving a claim for monetary damages and/or declaratory or injunctive relief arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a single arbitrator in Dallas, Texas, according to the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  The direct expense of any arbitration proceeding shall be borne by the Company.  Notwithstanding the foregoing, nothing in this Paragraph is intended to subject a claim by either party arising under Paragraphs 10, 11, 12, or 13 to mandatory arbitration.  Any claim arising under Paragraphs 10, 11, 12, or 13 shall be litigated in the courts of the relevant jurisdiction and venue.

 

Inventions and Discoveries

 

	
16.

	
Discoveries, Inventions, & Copyrights.  Executive shall disclose promptly to the Company any and all conceptions and ideas for inventions, improvements, and valuable discoveries, whether patentable or not, which are conceived or made by the Executive, solely or jointly, during Executive’s term of employment and which pertain to the business activities of the Company.  Executive hereby assigns and agrees to assign all his interest therein to the Company or to its nominee.  Whenever requested to do so by the Company, Executive shall execute any and all applications, assignments, or other instruments which the Company shall deem necessary to apply for and obtain Letters of Patent of the United States or any foreign country or to otherwise protect the Company’s interest therein.

 

General Provisions

 

	
17.

	
Condition to Seeking Subsequent Employment.  Executive agrees to show a copy of this Agreement to any Competitor with whom Executive interviews during the Executive’s employment with the Company or with whom the Executive interviews within twelve (12) months following the effective date of the termination of the Executive’s employment with the Company.

 

	
18.

	
Attorneys’ Fees.  If any party shall obtain a final judgment of a court of competent jurisdiction, subject to no further appeal, pursuant to which any other party shall be determined to have breached its obligations hereunder or made any misrepresentations, such prevailing party shall be entitled to recover, in addition to any award of damages, reasonable attorneys’ fees, costs, and expenses incurred by such party in obtaining such judgment.

 

  

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19.

	
Non-Disparagement and Confidentiality.  Except as may be required by law or as consented to in writing by an authorized officer or agent of the Company, Executive agrees not to make any statements whatsoever, directly or indirectly, written or oral, which could reasonably become public, which could be interpreted as embarrassing, disparaging, prejudicial, or in any way detrimental or inimical to the interests of the Company.  Furthermore, Executive agrees to hold confidential and not to disclose, make public, or to communicate orally or in writing to any person or entity (other than Executive’s significant other and immediate family), directly or indirectly, the terms of this Agreement or any matters set forth herein, except only: (a) as may be compelled by court orders; (b) as may be necessary to enforce the terms of this Agreement; (c) to legal, accounting, and financial advisors; (d) as may be necessary in connection with the application for or obtaining loans or credit; (e) as may be necessary to comply with applicable laws and government regulations; or, (f) as may be necessary or desirable in obtaining future employment.

 

	
20.

	
Additional Termination Provisions.

 

	
  

	
(a)

	
Separation from Service.  Notwithstanding anything to the contrary in this Agreement, with respect to the Severance Payments or any other amounts payable to Executive under this Agreement in connection with a termination of Executive’s employment that would be considered “non-qualified deferred compensation” under Section 409A of the Code, in no event shall a termination of employment be considered to have occurred under this Agreement unless such termination constitutes Executive’s “separation from service” with the Company as such term is defined in Treasury Regulation Section 1.409A-1(h) and any successor provision thereto (“Separation from Service”).

 

	
  

	
(b)

	
Section 409A Compliance.  Notwithstanding anything contained in this Agreement to the Contrary, to the maximum extent permitted by applicable law, the Remaining Term Payments and the Severance Payments payable to Executive pursuant to Paragraph 4 shall be made in reliance upon Treasury Regulation  Section 1.409A-1(b)(9)(iii) (relating to separation pay plans) or Treasury Regulation Section 1.409A-1(b)(4) (relating to short-term deferrals).  However, to the extent any such payments are treated as non-qualified deferred compensation subject to Section 409A of the Code, and if Executive is deemed at the time of his Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited payment under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s termination benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six-month period measured from the date of Executive’s Separation from Service or (ii) the date of Executive’s death.  Upon the earlier of such dates, all payments deferred pursuant to this Paragraph 20(b) shall be paid in a lump sum to Executive.  The determination of whether Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of his Separation from Service shall made by the Company in accordance with the terms of Section 409A of the Code and applicable guidance thereunder (including without limitation Treasury Regulation Section 1.409A-1(i) and any successor provision thereto).  Notwithstanding anything to the contrary in this Agreement or in any Company policy with respect to such payments, in-kind benefits and reimbursements provided under this Agreement during any tax year of Executive shall not affect in-kind benefits or reimbursements to be provided in any other tax year of Executive and are not subject to liquidation or exchange for another benefit.  Notwithstanding anything to the contrary in this Agreement, reimbursement requests must be timely submitted by Executive and, if timely submitted, reimbursement payments shall be made to Executive as soon as administratively practicable following such submission in accordance with the Company’s policies regarding reimbursements, but in no event later than the last day of Executive’s taxable year following the taxable year in which the expense was incurred.  The forgoing provisions shall apply to in-kind benefits and reimbursements that would result in taxable compensation income to Executive.

 

  

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21.

	
Section 409A; Separate Payments.  This Agreement is intended to be written, administered, interpreted and construed in a manner such that no payment or benefits provided under the Agreement become subject to (a) the gross income inclusion set forth within Section 409A(a)(1)(A) of the Code or (b) the interest and additional tax set forth within Section 409A(a)(1)(B) of the Code (collectively, “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have meanings that would not cause the imposition of Section 409A Penalties.  In no event shall the Company be required to provide a tax gross-up payment to Executive or otherwise reimburse Executive with respect to Section 409A Penalties.  For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), each payment that Executive may be eligible to receive under this Agreement shall be treated as a separate and distinct payment and shall not collectively be treated as a single payment.  Executive acknowledges and understands that neither the Company nor any employee or agent of the Company has provided Executive any tax advice regarding this Agreement or amounts payable under this Agreement and that the Company has urged Executive to seek advice from Executive’s own tax advisor regarding the tax consequences of this Agreement to Executive.

 

	
22.

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

 

	
23.

	
Nonwaiver.  Any waiver by the Company of a breach of any provision of this Agreement must be in writing and signed by the Company to be effective.  Any waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver by the Company of any different or subsequent breach of this Agreement by Executive.

 

	
24.

	
Applicable Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of Texas, without giving effect to the conflict of laws provisions thereof.

 

  

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25.

	
Forum Selection Clause.  Any and all causes of action for equitable relief relating to the enforcement of this Agreement and not otherwise subject to the mandatory arbitration provisions of Paragraph 15 may, in the Employer’s sole discretion, be brought in the United States District Court for the Northern District of Texas or the Dallas County District of the Texas State Courts.  The parties agree that the provisions of this Paragraph benefit both Employer and Executive.  Any and all causes of action by and between Employer and Executive can be quickly and efficiently resolved in the agreed-upon forum, which will not unduly burden either Employer or Executive, and which will substantially aid Employer and Executive in providing the opportunity for uniform treatment with respect to any issues relating to the covenants contained in this Agreement.

 

	
26.

	
Entire Agreement; Amendment.  This Agreement represents the entire agreement between the Company and the Executive with respect to the subject matter hereof, supersedes all prior agreements dealing with the same subject matter.  This Agreement may be amended at any time by the mutual consent of the parties hereto, with any such amendment to be invalid unless in writing, signed by the Company and Executive; provided that any such amendment shall be consistent with the provisions of Paragraphs 20 and 21 hereof.

 

	
27.

	
Severability.  The invalidity of any term or provision of this Agreement, including any term or provision of Paragraphs 10, 11, 12, or 13 shall not invalidate or otherwise affect any other term or provision of this Agreement.

 

 

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IN WITNESS WHEREOF, the Company and Executive have duly executed this Agreement to be effective as of the day and year first above written.

 

	 	

Interphase Corporation

	 
	 	 	 
	 	 	 
	 	 	 	 
	 	
By: 

	/s/ Gregory B. Kalush	 
	 	 	Gregory B. Kalush	 
	 	 	 	 
	 	Its: President and Chief Executive Officer	 
	 	 	 	 

 

	 	

Executive

	 
	 	 	 
	 	 	 
	 	 	 	 
	 	/s/ Thomas N. Tipton, Jr.	 
	 	Thomas N. Tipton, Jr.	 

 

 

  

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Exhibit A

Job Description

 

 

	Job Title: CFO & VP of Finance 	Department: Executive
	Reports To: CEO 	FLSA Status: Exempt
	Prepared By: G. Kalush 	Approved By: G. Kalush
	Prepared Date: December 12, 2005 	Approved Date: December 12, 2005

                                                                               

	 	SUMMARY 

Overall responsibility for all aspects of Finance, Treasury, Accounting, and IT for Interphase on a worldwide basis.  This position holds the responsibility for the creating, gaining approval of and implementing the financial strategy (and architecture) for the company, including the management of the company’s controls, establishing effective measurements and review processes, participating in the architecture of significant transactions (whether with key OEM customers, potential M&A activities, or key strategic partnerships). This position is a key member of the executive team and is an officer of the company, and as such will prepare for and be a key representative of management at all Board meetings.

	 

 

	 	ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned. Management reserves the right to change these duties at any time. 

The CFO and VP of Finance position is responsible for establishing the financial architecture for Interphase, a publicly traded company. This includes the establishment and implementation of all of the company’s financial controls, preparation and interpretation of financial reports in accordance with GAAP, all SEC reporting, safeguarding of the company’s assets, sound financial guidance in all significant transactions (whether with key OEM customers, potential M&A activities, or key strategic partnerships), treasury functions, and assisting the CEO with company strategy and support as necessary.  This position in a “right-hand” to the CEO, and as such must act in harmony with the direction that the CEO sets for the company.

Responsible for coordinating and ensuring the efficient and effective creation (working with other senior executives) of the company’s annual operating and strategic plans. This includes the development of the all financial and accounting plans and policies of the company. Prepares financial and economic analysis for operating plans of the organization, and helps coach peer executives to a balanced, financially sound plan.

Maintains healthy, positive and honest relationships with the banking community, public audit partners, Wall Street analysts and shareholders.

	 

 

  

  

  

 

 

	 	

Directs Finance and Accounting, Treasury, MIS, and Investor Relations, establishing benchmarked goals and creative plans to achieve those goals for each responsibility.

Coordinates and directs all financial operations including: budgeting, tax, audit, SEC compliance, legal counsel, cash management, care and custody of funds and other financial assets, and business risk management (and insurance) programs.

 

Participates in any merger and acquisition decisions, and maps all due diligence processes.  This includes potentially related activities such as business divestitures, partnerships, joint ventures, etc.  This role is a key advisor-ship role to the CEO on behalf of the company.

Responsible for reviewing and approving all company contractual obligations including OEM agreements, NDA agreements, etc.

Responsible for the creation and leadership of the company’s investor relations program, ensure that the company is properly and honestly promoted in the market, this will include the joint creation of the company’s “story” and the road shows and street relationships to deliver it.

Responsible for producing and publishing the company’s annual report.

In conjunction with CEO, creates the Delegation of Authority Matrix.

SUPERVISORY RESPONSIBILITIES

The CFO directs and leads subordinate managers including: the Corporate Controller, Financial Planning & Analysis Manager, European Finance & HR Manager, Contracts Manager, and the IT Manager. Responsible for the overall direction, coordination, and evaluation of these units.  Carries out supervisory responsibilities in accordance with the organization’s policies and applicable laws and governmental regulations. Responsibilities include interviewing, hiring, and training employees; planning, assigning, and directing work; appraising performance; rewarding and disciplining employees; addressing complaints and resolving problems, and motivating team.

QUALIFICATIONS To perform this job successfully, the individual must be able to perform each essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

EDUCATION and/or EXPERIENCE

Bachelor’s degree (B. A.) or equivalent; plus ten or more years related experience and/or training; or equivalent combination of education and experience. Must have strong leadership skills and the ability to inspire and motivate teams to perform well and meet company objectives. Must have a current CPA license in good standing.

	 

 

  

  

  

 

	 	

LANGUAGE SKILLS

Ability to read, analyze, and interpret financial statements and reports, complex contracts and legal documents. Ability to write speeches and articles for publication that conform to prescribed style and format.  Ability to effectively present information to customers, the Sr. Leadership Team, the Board of Directors, our employees, public groups, and/or the media.

OTHER SKILLS AND ABILITIES

Must have excellent communication skills (reading, writing, speaking, and presentation), understanding of business and finance-related concepts, analytical skills, creative thinking skills, skills in tactfully addressing various tasks, and the ability to occasionally work under pressure or in a deadline-oriented environment.  Able to communicate and partner effectively with employees at all levels, as well as with customers, analysts, investors, the Board of Directors and the business community.  Must be able to handle multiple tasks concurrently, prioritizing as necessary. Must be very computer literate.  Proficient with the Microsoft Suite of products to create PowerPoint presentations, Word documents, Excel spreadsheets, and do email.  Strong knowledge of database and accounting computer application systems which supply the most accurate financial information.  Excellent analytical, mathematical, and organizational skills.

REASONING ABILITY

Ability to define problems, collect data, establish facts, draw valid conclusions. Ability to interpret an extensive variety of technical instructions in mathematical or diagram form and deal with several abstract and concrete variables.

PHYSICAL DEMANDS

The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

While performing the duties of this job, the employee is regularly required to use hands to finger, handle, or feel and talk or hear.  The employee frequently is required to walk, sit, and reach with hands and arms.  The employee is occasionally required to stand.  The employee must occasionally lift and/or move up to 10 pounds.  Specific vision abilities required by this job include close vision and color vision.

WORK ENVIRONMENT

The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Normal Office Environment, though some travel may be required.  A valid passport will be necessary.

	 

	 	
  Initials  

	

GK

	 	 	TT

Exhibit A

 

  

  

  

 

Exhibit B

Compensation

Base Salary.  $8,846.15 per pay period ($230,000/year on an annual basis), of which there are 26 in each calendar year, less deductions as may be required by law or authorized by Executive.

Annual Bonus.  Executive shall be eligible for an annual bonus for FY2013 in an amount up to $63,000 under and subject to the terms and conditions of the Company’s Executive Bonus Plan.  During the term of this Agreement, Executive shall be eligible for an annual bonus under the Company’s Executive Bonus Plan, as determined by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) in its sole discretion (collectively, “Annual Bonus”).  The opportunity to earn an Annual Bonus and the actual amount of the Annual Bonus will be determined in accordance with criteria established by the Compensation Committee and based on Executive’s achievement of specific corporate objectives as determined by the Compensation Committee.  Executive must continue to be employed by the Company through the payment date of any such Annual Bonus as a condition to receiving the bonus.

Equity Awards.  Pursuant to the provisions of this Agreement prior to its amendment and restatement as set forth herein, the Company has, according to the Company’s Long-Term Stock Incentive Plan and with the approval of the CEO and Board of Directors, granted to Executive 25,000 stock options of the Company.  Executive’s right, title, and interest to any equity conferred under the Employment Agreement shall be controlled and governed by terms and conditions of the Company’s Long-Term Stock Incentive Plan.  Executive shall be eligible to participate in equity awards as determined by the Compensation Committee under the Company’s Long-Term Stock Incentive Plan or other equity award plan maintained by the Company during the term of this Agreement.

Executive Benefit Plans. Based on the plans maintained by the Company from time to time during the term of this Agreement for its similarly situated executives, and subject to change at any time, Executive will be provided with a comprehensive and competitive benefits package including medical, dental, life, AD&D, STD and the Company’s discretionary matching 401(k) plan . The Executive shall be eligible to participate in such benefit plans, according to the terms and conditions of those plans.  The Executive will pay the same amount as all other similarly situated executive and non-executive employees for health premiums.

Severance Pay. Executive shall be eligible for 12 months of base salary, subject to terms and conditions of this Agreement.  Please refer to Paragraph 4 of this Agreement, “Termination Without Cause or Nonrenewal.”

Executive Disability Plan.  The Executive is eligible to apply through Interphase for a voluntary, individual Executive Disability Plan.  If approved by the carrier for coverage, the premiums will be paid for by the Executive.

 

  

  

  

Vacation and Leave.  Executive shall be entitled to four (4) weeks of vacation per year, accrued monthly and in accordance with the Company’s vacation policy in effect from time to time, and six (6) sick days per year, and any other paid leave benefits provided for in the Company’s Policy Guide.

Cell Phone & Computer.  Executive will be furnished with a laptop and cell phone for business purposes.

Office Furnishings.  The Company agrees to provide office space and furnishings to Executive commensurate with the Company’s decor and culture.

 

 

 

 

 

	 	
  Initials  

	

GK

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Exhibit B

 

  

  

  

 

Exhibit C

Designated Cities — Per Paragraph 11a of Employment, Confidentiality, and Non-Compete Agreement.

The Continental United States

 

 

 

 

	 	
  Initials  

	

GK

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Exhibit Cex10-11.htm

Exhibit 10.1(1)

 

JOINT DEVELOPMENT AGREEMENT

 

Verdant Automotive Corporation, a Delaware corporation (including its permitted assigns, “Verdant”), and WindStrip, LLC, a Delaware limited liability company (“WindStrip”) enter this Joint Development Agreement (“JDA”) as of this 30th day of September 2011.   This JDA, together with its exhibits, includes the principal terms for the establishment of a business collaboration (the “Collaboration”) to develop and commercialize power storage and management systems (the “Storage Systems”) that are integrated into WindStrip’s modular wind and hybrid wind power systems (the “Generation Systems” and as integrated, the “Integrated Systems”).

 

1.            Development Storage Systems

 

1.1  WindStrip has developed the proprietary Generation Systems that enable intelligent utilization of energy from multiple sources, such as wind, grid, solar, battery, or diesel, for supplying power to the electronics associated with cell phone tower and other site energy needs.  Intelligent storage and management of energy storage and delivery are integral to the optimal delivery of energy to the site is.

 

1.2  Verdant has developed various proprietary Storage Systems that enable intelligent charging, storage and delivery of energy.

 

1.3  Verdant and WindStrip agree to collaborate in the joint development of Storage Systems tailored to the Generation Systems and other site-specific energy sources and needs of WindStrip target customers, initially focused on WindStrip’s Generation Systems designed for installation on towers at Base Transceiver Stations (BTS) utilized in the cellular telephone industry.

 

1.4  The initial generation of Storage Systems (the “Rev 1.0 System”) will be developed by Verdant, with the support and input from WindStrip, on a time table compatible with the initial target roll-out of WindStrip’s first commercial installations through the development working group meetings with WindStrip pursuant to Section 2.1 below.

 

1.5  Following the development of the Rev 1.0 System as provided in Section 1.4 above, during the term of the Collaboration, and for at least one year thereafter, Verdant will continue to provide technical support for the technology of the Rev 1.0 System pursuant to the development working group meetings with WindStrip pursuant to Section 2.2 below, and, during the term of the Collaboration, Verdant and WindStrip will work through the development working group meetings pursuant to Section 2.1 below to develop subsequent generations of Storage Systems optimized to present and future generations and implementations of the Generation Systems.

 

1.6  It is agreed and understood that the technology, capability and performance of the Storage Systems will be based on optimizing implementation of WindStrip’s Generation Systems.  Verdant will develop and maintain high-performance Storage System capability, suitable for delivering performance levels compatible with the Generation Systems and customer demands for Integrated Systems as they develop from time to time.

 

1.7  Each of Verdant and WindStrip will continue to own its own intellectual property and other property comprising the Storage Systems and the Generation Systems, respectively, it being understood that WindStrip currently has developed existing energy storage systems for use in existing WindStrip Integrated Systems.  The parties will, in furtherance of the Collaboration pursuant to Operating Agreements (as defined in Section 4.2 below) develop agreements for ownership and cross licenses of intellectual property developed in connection with newly designed Storage Systems.

 

  

 

  

 

2.            Development of Storage Systems

 

2.1  Through initial Development Group meetings (the “Development Group Meetings”), WindStrip will provide to Verdant the targeted energy storage, management and demands for implemented Integrated Systems and Verdant and WindStrip will exchange ideas on appropriate design and implementation of the Storage Systems and final Integrated Systems, with the understanding that WindStrip will have ultimate right and responsibility to determine (including through interaction with target customers) and decide upon the Integrated System’s final specifications, giving due consideration to the Integrated Systems’ target design and capabilities.  Verdant will then develop the Rev 1.0 System on a time table compatible with the initial target roll-out of WindStrip’s first commercial installations.  The scheduling of the Development Group Meetings shall be as established by the Management Leaders pursuant to Section 4.4.

 

2.2  Following the initial development and implementation of the Rev 1.0 System, through the Collaboration, Verdant and WindStrip shall conduct periodic Working Group meetings (the “Working Group Meetings”) to formulate the continued development and updating of Storage Systems and capabilities to be integrated with the Generation Systems as they are developed and implemented from time to time.   Through the Collaboration, Verdant and WindStrip will exchange ideas on appropriate implementation of the Integrated Systems, with the continued understanding that the WindStrip representatives on the Management Committee (as defined in Section 4.4 below) will have ultimate right and responsibility to determine (including through interaction with target customers) and decide upon the Integrated System’s final specifications, giving due consideration to the Integrated Systems’ target design and capabilities.  The scheduling of the Working Group Meetings shall be as established by the Management Committee established pursuant to Section 4.4 below pursuant to the Operating Agreements (as defined in Section 4.2 below).

 

2.3  WindStrip will be responsible for all third-party rights, including intellectual property rights and obligations, with respect to all third-party content included on the Generation Systems.  Verdant will be responsible for all third-party rights, including intellectual property rights and obligations, with respect to all third-party content included on the Storage Systems.

 

3.            Marketing of the Integrated Systems

 

3.1  WindStrip will be solely responsible for marketing and advertising the Integrated Systems, which will be marketed and advertised as WindStrip products including Verdant energy storage and management systems.

 

3.2  Through Working Group Meetings, the WindStrip and Verdant will develop other marketing and advertising ideas for the Integrated Systems, with the understanding that the WindStrip representatives on the Management Committee will have ultimate authority to approve or disapprove any such marketing or advertising content or means and provided further that the expenses of such marketing and advertising shall be as agreed by the Management Committee.

 

3.3  It is the expectation of the parties that the Integrated Systems will be marketed during the term of the Collaboration as an integrated package, with revenue shared between WindStrip and Verdant as agreed in the Operating Agreements.  The parties may develop other commercial agreements, including supply agreements, in the Operating Agreements to last during or after the term of the Collaboration.

 

3.4  WindStrip may, in its sole and absolute discretion, utilize any energy storage systems in the Integrated Systems.  Following the development of the Storage System through the Collaboration, it is the parties’ expectation that, so long as agreed performance standards are maintained, WindStrip will exclusively utilize the Verdant Storage Systems in the Integrated Systems.

 

  

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4.           Collaboration Management

 

4.1  To implement, own and manage the Collaboration, Verdant and WindStrip will each designate team members responsible for engineering, design, development, and manufacture of Storage Systems to be integrated into the Integrated Systems.

 

4.2  The Collaboration will be managed and governed by such agreements (the “Operating Agreements”) customary for transactions of this type and consistent with this JDA as the parties may determine.

 

4.3  Verdant and WindStrip teams will be responsible for the cooperation between the parties and the joint development work on the Storage Systems (and, as applicable from time to time, the Integrated Systems) both during the development phase (the “Development Group”) and the operational phase (the “Working Group” and together with the Development Group, the “JDA Working Groups”) of the Integrated Systems.

 

4.4  The team members initially assigned to the Development Group and the initial leaders of each party’s team (“Management Leaders”) are set forth on Schedule 4.4.  Either party may, by written notice to the other, update their list of team members or their Management Leaders of the Development Group with other representatives as may be reasonable.  The team members initially assigned to the Working Group and the initial members of the management committee of the Collaboration (the “Management Committee”) will be set forth in the Operating Agreements.  Either party may, by written notice to the other, update their list of team members of the Working Group or their Management Committee representatives with other representatives as may be reasonable pursuant to the terms and conditions of the Operating Agreements.

 

4.5  The JDA Working Groups will be responsible for the day-to-day development efforts and coordination in the development, implementation, operation and management of the Collaboration.  Each JDA Working Group will convene—in person, or by telephone or video conference—no less frequently than weekly (except when a JDA Working Group deems it appropriate, the weekly sessions may be reset to be a minimum of bi-weekly), with the objective that the teams communicate routinely and regularly on all relevant aspects of the Storage Systems’ joint development and the Collaboration’s goals, including effective commercialization of the Integrated Systems.

 

4.5.1    The JDA Working Groups will establish, and modify or update as they deem appropriate, procedures and practices for their meetings and coordination.

 

4.5.2    The JDA Working Groups will establish in writing agreed upon projects, specific working plans, including schedules, milestones and manpower/resource needs, for the Collaboration.  Any matters concerning the working plans, milestones, schedules or manpower/resource needs that cannot be resolved at the JDA Working Group level will be escalated to the Management Leaders or Management Committee, as applicable, who will be responsible to cooperate in good faith to find a mutually acceptable solution in a timely manner, and failing such a resolution at that level, the matter will be escalated to and resolved by the Executive Sponsors.

 

4.6  The leaders of the JDA Working Groups, the Management Leaders, the Executive Committee and Executive Sponsors, as applicable, will be responsible for the management and coordination of the development efforts in the Collaboration.  Verdant and WindStrip will convene—by telephone or video conference, or in person—regular status update meetings on a monthly basis with the objective that the JDA Working Groups, Management Leaders and Executive Committee members responsible for the Collaboration communicate routinely and regularly on all relevant aspects of the Collaboration’s work.

 

4.7  Verdant and WindStrip will convene regular management review meetings on a quarterly basis with the objective that the Executive Sponsors, Management Committee members, Management Leaders, and others responsible for the Collaboration meet regularly to review all relevant aspects of the Collaboration’s work and to enhance the cooperation and resolve any issues.  Verdant and WindStrip intend that these quarterly review meetings will alternate between WindStrip and Verdant locations.  The first such management review meeting will be held on or before September 30, 2011 at WindStrip’s location.

 

  

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4.8  During the term of the Collaboration, WindStrip will have a non-exclusive, royalty free license to utilize the Verdant’ technology embodied in the Storage Systems.  The details of such license will be as set forth in the Operating Agreements consistent with this JDA.

 

4.9  Verdant warrants and represents that it owns and controls and will continue to own and control, or has and will continue to have the license rights permitting the open sub-license as contemplated in the Collaboration, the rights, including copyrights, trademarks and applicable patents, if any, to the technology, know-how and other intellectual property embodied or utilized in the Storage Systems (the “Platform IP”), and that it has the right to make and enter into this Agreement and use, license, transfer and share said intellectual property with WindStrip.  Further, Verdant agrees to indemnify, defend and hold harmless WindStrip and its authorized representatives, officers, directors, agents and employees against any third-party claims for infringement or misappropriation relating to the Platform IP or breach of any of the warranties or representations made in this JDA.

 

5.            Joint Development of Ideas

 

5.1  Subject to their obligations of confidentiality to third parties, if, during the term of the Collaboration, either WindStrip or Verdant personnel become aware of information or developments that reasonably seem material to the purpose or operation of the Collaboration, they will promptly disclose such matter to the Collaboration, and, thereafter the parties will cooperate to evaluate the utility of the matter to the development or operation of the Collaboration.

 

5.1.1    Except as otherwise agreed in writing, none of the Collaboration, WindStrip nor Verdant will seek or be entitled to any property rights in any information or developments that may be disclosed to them by WindStrip or Verdant, as applicable, pursuant to this Section 5.1.

 

5.1.2    If any party believes they have information which may be material to the Collaboration but which is subject to restrictions or which in the event of disclosure to the Collaboration requires compensation to unaffiliated third parties, Verdant and WindStrip will cooperate in good faith to evaluate the situation and to find a mutually satisfactory resolution consistent with any obligations to such third parties.

 

5.1.3    WindStrip and Verdant will cooperate to ensure that the JDA Working Groups have knowledge of energy storage and management system development and operation to enable a reasonably skilled team to participate in the JDA Working Groups as intended and to implement WindStrip’s technology embodied in its Generation Systems in their preferred manner (collectively, such technology and know-how shall be referred to as “Necessary Background”).

 

5.2   Notwithstanding anything to the contrary in Section 5.1, nothing in this JDA requires any party to disclose information or ideas which that party, at the time in their own good faith judgment, deems so experimental, so preliminary or so unsubstantiated that they would not rely on such results in their own process development, and such matters will not be considered Necessary Background.

 

6.            Working Group and Executive Responsibilities

 

6.1  All development and technology issues will be resolved in the first instance at the JDA Working Group level.

 

  

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6.2  If, at any time, the team leaders feel that a matter has not been satisfactorily resolved, or, upon the written request of either party, the matter will be escalated to Verdant and WindStrip Management Leaders or the Management Committee, as applicable.  If the matter is not resolved at that level, then upon written request of either or both parties, it will be escalated to the Executive Sponsors who will be responsible to find a mutually acceptable solution in a timely manner.

 

7.            Expenses and Mutual Support

 

7.1  Except as otherwise agreed in writing, Verdant will be responsible for all costs of the development of the Storage Systems to be integrated into the Integrated Systems.

 

7.2  Except as otherwise agreed in writing, WindStrip will be responsible for all costs of the development of the Generation Systems to be integrated into the Integrated Systems.

 

7.3  Except as otherwise agreed in writing, each party will incur and pay its own other expenses incurred in connection with the Collaboration.

 

7.4  Following commencement of commercialization of Integrated Systems utilizing Verdant’s Storage Systems, it is the parties’ expectation that the expenses of maintaining the Collaboration shall be paid by revenue allocation from sales of Integrated Systems, as detailed in the Operating Agreements.

 

7.5  Notwithstanding Sections 7.1 to 7.4 and Section 9.1, there will be assignment/delegation of Delegates to the facilities, if any, of the Collaboration and to the operation of the Collaboration to assist in development, maintenance and operation of the Storage Systems and the Collaboration.  The Management Leaders and Management Committee will cooperate to agree upon, as part of their project definition and specific working plans, the tasks that need to be accomplished, and any associated cost allocation issues, it being the understanding of the parties that the expense of such delegates during the development period shall be borne by the respective providing party.

 

7.6  Without limiting the foregoing, and except as otherwise agreed in writing, each party will be responsible for all compensation, travel, benefits, and taxes with respect to its activities and personnel.

 

7.7  Verdant and WindStrip will each arrange (at the expense of the company at the host location) suitable office space for the personnel from the other assigned to work at the host location, including reasonable communication and data line connections.

 

7.8  All personnel of one company while visiting and/or working at facilities or locations of the other will abide by the standard and customary rules and practices of the host at the location involved.

 

7.9 Within ten (10) business days of execution of this Agreement by the parties, the parties (including the “key man” from Verdant and WindStrip, respectively), will meet and meaningfully collaborate on a business plan for the Collaboration (including the creation and development of a budget for the Collaboration).  If no mutually agreeable business plan is reached within one hundred twenty (120) days, this JDA will terminate with no further obligations to each other except for confidentiality, non-disclosure and (if applicable) non-compete clauses.

 

8.            Intellectual Property, Technology Rights and Restrictions

 

8.1  Subject to the rights and obligations of the parties under this JDA, as between WindStrip and Verdant:

 

8.1.1  All Party Inventions are and will be owned by the party who developed and/or contributed the specifics involved, and that party shall have the rights to any and all patentable subject matter involved;

 

  

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8.1.2  All Joint Inventions will be jointly owned by the jointly responsible parties. Without limiting the foregoing, the Management Leaders or the Management Committee, as applicable, will set up mutually agreeable mechanisms to allocate the responsibility to prepare and prosecute applications for patents pursuant to such procedures as will ensure orderly and efficient protection for intellectual property, with the guideline that the costs of prosecution and maintenance for specific joint patents will be shared equally by the jointly responsible parties involved.

 

8.2  Subject to the rights and obligations of the parties under this Collaboration:

 

8.2.1  Verdant grants WindStrip worldwide licenses to the technology embodied in Verdant’s Storage Systems and all Necessary Background, to the fullest extent of Verdant’ ability to do so without the obligation to pay unaffiliated third parties compensation for such grants, and

 

8.2.2  WindStrip grants Verdant worldwide licenses to all intellectual property (including trademarks, service marks, and patents) identified in Schedule 8.2.2 and all Necessary Background, to the fullest extent of WindStrip’s ability to do so without the obligation to pay unaffiliated third parties compensation for such grants for the limited purpose of facilitating Verdant’s development of the Storage Systems pursuant to the Collaboration, and

 

8.2.3  Either party may terminate the licenses granted to the other under Sections 8.2.1 and 8.2.2 in the event that the Operating Agreements are properly terminated for material breach by the other (and the non-breaching party may retain its rights and licenses under such Sections), subject however to the procedures agreed upon by the parties for dispute resolution.

 

8.3  Regardless of anything to the contrary above, Verdant shall not use the technology embodied in WindStrip’s Generation Systems and any related Necessary Background to operate any enterprise for any party other than WindStrip, Verdant shall not disclose proprietary information relating to the technology embodied in WindStrip’s Generation Systems to any third party other than as reasonably appropriate to the development and commercialization of the Integrated Systems, and WindStrip shall not disclose the proprietary information relating to the technology embodied in Verdant’s Storage Systems to any third party other than as reasonably appropriate to the development and commercialization of the Integrated Systems.  Notwithstanding the foregoing, either party may disclose technology if required by law; provided, however, that in the event either party, or its directors, officers, employees or agents, become legally compelled to disclose any of such proprietary information, that party will provide the other party prompt notice so that the party whose proprietary information is proposed to be disclosed may seek a protective order or other remedy, or waive compliance with the provisions of this JDA, and in the event that such protective order or remedy is not obtained, will furnish only that portion of the proprietary information which is legally required to be disclosed and will exercise its best efforts to obtain a protective order or other reliable assurance that confidential treatment will be afforded the proprietary information so disclosed.

 

8.4  Regardless of anything to the contrary, nothing in this JDA shall prohibit either party from disclosing or licensing to others any technology, know-how or other intellectual property which was created and/or obtained independently of the other, other than as reasonably appropriate to the development and commercialization of the Integrated Systems.

 

8.5  No mask work or patent licenses are granted expressly, or by implication, estoppel or otherwise, under this JDA.  The parties will cooperate on library, cell, IP, test structure and other design aspects as they may deem appropriate, and all rights concerning such matters as between them will be as stated in a written agreement.

 

8.6  Notwithstanding anything herein to the contrary, WindStrip may use any Joint Inventions for any purpose, including use in development, manufacture, promotion, sale and maintenance of its products and services, and WindStrip shall have a perpetual, royalty-free, worldwide license for such Joint Inventions.

 

  

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8.7  Except as expressly stated, this JDA will not serve to impair the right of either Verdant or WindStrip to develop, make, procure, market and/or maintain products, processes or services, now or in the future, which incorporate features that may be competitive with the Collaboration or the technology developed pursuant to the Collaboration, or require either Verdant or WindStrip to disclose any planning information to the other.  Nothing in this JDA prohibits or restricts either Verdant or WindStrip from developing or acquiring technology, rights, know-how, processes or information, independently of the other party, whether with or without the involvement of third parties.

 

8.8  Except as expressly agreed in writing, neither party will have any responsibilities or obligations under this JDA to transfer or install processes or know-how to or into premises or facilities of the other, nor will either party have any responsibilities or obligations under this JDA to provide technical support or service to the other for such transfer or installation, except to the extent that Verdant shall be obligated to provide the maintenance and support for the Storage Systems, as outlined in Section 1.

 

9.            Miscellaneous

 

9.1  The terms of the attached Miscellaneous Provisions & Definitions Attachment are incorporated by reference.

 

In Witness Whereof, the undersigned have caused this Joint Collaboration Agreement to be signed by their duly authorized officers as of the date first above written.

 

	 	Verdant Automotive Corporation	 
	 	 	 
	 	 	 	 
	 	
By: 

	/s/     David Edgar	 
	 	 	 	 
	 	 	 	 
	 	WindStrip, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Juha Rouvinen	 
	 	 	 	 

 

  

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MISCELLANEOUS PROVISIONS & DEFINITIONS ATTACHMENT

 

Definitions

 

“Applicable Law” means the law set forth in Section 6.3 below as the governing law of this JDA.

 

“Delegates” means those engineers and other personnel from Verdant and/or WindStrip assigned or delegated to the facilities of the other party (or to the facilities of Collaboration) to work in the Collaboration (if from Verdant, these personnel will be “Verdant Delegates” and if from WindStrip, these personnel will be “WindStrip Delegates”).

 

“Executive Sponsors” initially means David Edgar, on behalf of Verdant, and Juha Rouvinen, on behalf of WindStrip.

 

“Joint Inventions” means all inventions, conceptions, know-how and/or technology conceived jointly by the parties pursuant to their efforts in the Collaboration (including rights to trademarks, service marks, and patents with respect to such subject matter).

 

“Party” or “party” shall refer to Verdant, WindStrip, or any entity formed to implement the Collaboration, as applicable, and “Parties” or “parties” shall mean each Party (Verdant, WindStrip, and any Collaboration entity) which is signatory to the Party Agreement involved.

 

“Party Agreements” means and includes this Joint Development Agreement, the Operating Agreements, which shall include a services agreement to be entered into by and between Verdant and WindStrip relating to technical support of the Storage Systems.

 

“Party Inventions” means all inventions, conceptions, know-how and/or technology developed and/or contributed by one Party (or its employees or consultants) without joint contribution by the other.

 

Miscellaneous and General Provisions            

 

1.  No Solicitation:  During the term of the Collaboration, neither party will solicit for employment any person at the time employed by and/or working on behalf of the other.

 

2.  Force Majeure:  Neither party shall be liable for failure to perform, in whole or in part, its obligations under this Agreement if such failure is caused by any event or condition not reasonably within the control of the affected party, including by events of nature, fire, flood, typhoon, earthquake, explosion, strikes, labor troubles or other industrial disturbances, unavoidable accidents, war (declared or undeclared), acts of terrorism, sabotage, embargoes, blockage, acts of governmental, judicial, administrative, military or other authorities, riots, insurrections, or any other cause beyond the control of the parties; provided, that the affected party promptly notifies the other party of the occurrence of the event of force majeure and takes all reasonable steps necessary to minimize the disruption to the other party and to resume performance of its obligations so interfered with.

 

3.  Limitations:  AS A SEPARATE LIMITATION, IN NO EVENT WILL ANY PARTY BE LIABLE TO THE OTHER (i) FOR COSTS OF SUBSTITUTE GOODS, (ii) FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, OR (iii) FOR LOSS OF USE, OPPORTUNITY, MARKET POTENTIAL, GOODWILL AND/OR PROFIT ON ANY THEORY (CONTRACT, TORT, FROM THIRD PARTY CLAIMS OR OTHERWISE).  THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OR OF ANY FAILURE OR INADEQUACY OF ANY REMEDY. Each Party has consulted with counsel concerning their respective agreements, and enters into the Party Agreements with full advice and understanding and accepting the risks involved.

 

  

  

  

 

4.  Limitations on Representations and Warranties:  Except as expressly stated in the Party Agreements no Party makes any warranties or representations (express, implied or statutory).  THE PARTIES EXPRESSLY DISCLAIM ALL SUCH OTHER WARRANTIES, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE.  Without limiting the foregoing, except as expressly stated in the Party Agreements, there are no representations and/or warranties concerning the subject matter of such Party Agreements, and/or relating to the Collaboration of any sort or manner, and each Party expressly agrees that it is not relying upon any such other representations and/or warranties.  Each Party has consulted with counsel concerning such Agreements and Collaboration, and enters into the Party Agreements with full advice and understanding and accepting the risks involved.

 

4.1  Notwithstanding anything to the contrary (whether in the Party Agreements or elsewhere), nothing contained in the Party Agreements shall be or be construed as:

 

4.1.1  a warranty or representation as to the validity, utility, suitability or economic viability of this opportunity or of any intellectual property or technology;

 

4.1.2  a warranty or representation that any provision, sales, use or other disposition of services to be provided by the Collaboration will be free from infringement of patents, trademarks and/or intellectual property rights other than those under which licenses have been granted hereunder and/or except as expressly stated in Section 8;

 

4.1.3  a warranty or representation that the Collaboration will be successful, that the Collaboration will realize and/or fulfill any of its business plans, that the Collaboration will return profit, or that the Parties will recover their investments (for purposes of this Section 4.1.3, no express covenant or obligation in the Agreement shall be eliminated and/or excluded by reason of it also being part of the Operating Agreements, nor shall this Section 4.1.3 absolve the Collaboration from efforts required under the Operating Agreements to implement the Collaboration);

 

4.1.4  conferring any right to use in advertising, publicity, or otherwise, any trademark, trade name or names of any Party, or any contraction, abbreviation or simulation thereof; and/or

 

4.1.5  conferring by implication, estoppel or otherwise, any license or other right under any class or type of patent, utility model or design patent, provided however that each Party holding joint ownership rights to Joint Inventions according to the Agreement shall, subject to the express limitations of and solely as expressly allowed under the Agreement, have the right to grant licenses with respect to such jointly owned inventions without the consent of (and without any obligation to account to) any other Party.

 

5.  Exports of Technology:  Without in any way limiting the provisions of the Party Agreements, each of the Parties agrees that no products, items, commodities or technical data or information obtained from a Party nor any direct product of such technical data or information is intended to or shall be exported or re-exported, directly or indirectly, to any destination restricted or prohibited by Applicable Law without necessary authorization by the Governmental Authorities, including  the United States Bureau of Export Administration (the “BEA”) or other Governmental Authorities of the United States with jurisdiction with respect to export matters.  Without limiting the generality of the foregoing, each Party agrees that it will not, without authorization from the Office of Export Licensing of the BEA, knowingly export or re-export to a destination outside of the United States General License GTDR technical data or information of United States origin subject to this Agreement, or the direct product thereof, or the product of a plant or major component of a plant that is the direct product thereof, without first providing any applicable export assurances of the exporting party.  Notwithstanding anything to the contrary, Verdant will not disclose to WindStrip and/or any Collaboration entity any information concerning processing, fabrication and/or equipment which is subject to any applicable export restrictions without first notifying WindStrip of these restrictions, and securing written consent from an officer of WindStrip to the disclosure.

 

  

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6.  Disputes

 

 6.1  Negotiation; Mediation:

 

6.1.1  Each Party agrees that in the event of a dispute arising out of or in any way relating to any one or more of the Party Agreements, the parties shall attempt to resolve the dispute through negotiation and then through mediation prior to instituting arbitration, litigation or any other adversary proceeding.  The parties shall first attempt in good faith to resolve any dispute arising out of or relating to the Party Agreements promptly by negotiation between executives who have authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of the Agreement.  Any party may give the other party written notice of any dispute not resolved in the normal course of business.  Within 15 days after delivery of the notice, the receiving party shall submit to the other a written response.  The notice and response shall include with reasonable particularity (a) a statement of each party’s position and a summary of arguments supporting that position and (b) the name and title of the executive who will represent that party and of any other person who will accompany the executive.  Within 30 days after delivery of the notice, the executives of both parties shall meet at a mutually acceptable time and place.  Unless otherwise agreed in writing by the negotiating parties, the above-described negotiation shall end at the close of the first meeting of executives described above (“First Meeting”).  Such closure shall not preclude continuing or later negotiations, if desired.  At no time prior to the First Meeting shall either side initiate a mediation, arbitration or litigation related to the Party Agreements except to pursue a provisional remedy that is authorized by law or by JAMS Rules or by agreement of the parties.  However, this limitation is inapplicable to a party if the other party refuses to comply with the requirements of this Section 6.1.

 

6.1.2  Following the First Meeting, if the parties have not reach settlement, a Party shall initiate a mediation by serving written notice on the other party by facsimile and overnight mail.  The parties may select any mediator mutually agreeable to them.  If the parties cannot agree on a mediator within fifteen (15) days, they will, within five (5) days thereafter submit a joint request for mediation to the Los Angeles office of JAMS, setting forth the subject of the dispute and the relief requested, and request JAMS to select an appropriate mediator from its panel of neutrals with experience in resolving financial and commercial disputes, preferably with experience in the renewable energy industry.   Each party may object to one JAMS selected mediator.  The parties will cooperate with JAMS and with one another in selecting a mediator from the JAMS panel of neutrals and in scheduling the mediation proceedings.  Any mediator shall serve as a neutral, independent and impartial mediator.  The parties agree that they will participate in the mediation in good faith.

 

6.1.3  The mediation session shall occur within fifteen (15) days of the selection of the mediator unless the parties mutually agree to extend this time, and shall be scheduled for not less than one day.  Each party agrees to send a representative with full settlement authority to the mediation.  The mediation shall be in the English language and shall be conducted exclusively in Beverly Hills, California, United States of America.  The parties agree to hold the content of the mediation in confidence and further agree that the mediator is disqualified and shall be excluded from testifying as a witness in litigation between the parties (except in proceedings to recover damages for actionable torts committed in the mediation).  Each party shall bear its own expenses (including attorney fees) for mediation proceedings under the Party Agreements, and an equal share of the expenses of the mediator and, where applicable, JAMS.  The parties agree that any refusal to mediate under this Section 6.1 is a breach of contract for which damages may be recovered in litigation between the parties.  Except as provided in Section 6.5 below, if the party who ultimately prevails in any arbitration or litigation institutes a court action or other adversary proceeding without first attempting mediation as required hereby, SUCH PREVAILING PARTY SHALL NOT BE ENTITLED TO ATTORNEYS’ FEES OR COSTS THAT MIGHT OTHERWISE BE AVAILABLE TO IT UNDER THE PARTY AGREEMENTS, ANY APPLICABLE LAW OR COURT RULES.

 

  

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6.1.4  All offers, promises, conduct and statements, whether oral or written, made in the course of the negotiation or mediation by any of the parties, their agents, employees, experts and attorneys are confidential, privileged and inadmissible for any purpose, including impeachment, in arbitration or other proceeding involving the parties (except in a proceeding to recover damages for actionable torts committed in the mediation), provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the negotiation or mediation.  All applicable statutes of limitation and defenses based upon the passage of time shall be tolled while the procedures specified in Sections 6.1.2 through 6.1.3 above are pending and for 15 calendar days thereafter.  The parties will take such action, if any, required to effectuate such tolling.

 

6.2  Arbitration; Litigation:  

 

6.2.1  Either party may initiate arbitration with respect to the matters submitted to mediation by filing a written demand for arbitration at any time following the initial mediation session, the time the other party refuses to participate in such a mediation, or at any time following 45 days from the date of filing the written request for mediation, whichever occurs first (“Earliest Initiation Date”).  At no time prior to the Earliest Initiation Date shall either party initiate an arbitration or litigation related to any Party Agreement except to pursue a provisional remedy that is authorized by law or by JAMS Rules or by agreement of the parties.  However, this limitation is inapplicable to a party if the other party refuses to comply with the requirements of Section 6.1 above.  The mediation may continue after the commencement of arbitration if the parties so desire.

 

6.2.2  Subject to Section 6.1 above, any dispute, controversy or claim arising out of or relating to any Party Agreement, including the formation, interpretation, breach or termination thereof, including whether the claims asserted are arbitrable, will be referred to and finally determined by confidential arbitration in accordance with the JAMS International Arbitration Rules.  The tribunal will consist of one arbitrator from JAMS’s panel of neutrals, who shall be a retired judge, preferably with experience in the renewable energy industry.  Each party may object to one JAMS selected arbitrator.  Any arbitrator shall serve as a neutral, independent and impartial arbitrator.  The place of arbitration will be Beverly Hills, California, United States of America.  The language to be used in the arbitral proceedings will be English.  Judgment upon the award rendered by the arbitrator may be entered exclusively in the courts within the jurisdiction of the state courts of Los Angeles County, California or the United States District Courts for the Central District of California (collectively, the “LA Courts”).  In the event of such suit, action or other adversary proceeding and solely for purposes of such an action or proceeding, the Parties hereto (a) submit to the exclusive personal jurisdiction of the LA Courts, (b) expressly waive any right they may have to a jury trial and agree that any such proceeding shall be tried by a judge without a jury, and (c) expressly covenant not to bring any such suit or claim before any other judicial tribunal.  All defenses based on passage of time shall be tolled from the date of timely written notice of negotiation pursuant to Section 6.1 above and, shall not resume until thirty (30) days after the Earliest Initiation Date, unless otherwise prohibited by law.

 

6.2.3  Notwithstanding anything to the contrary, and subject to Section 6.1 above, the parties may, without breach of Section 6.1 or 6.2, seek to pursue a provisional remedy in the LA Courts that is authorized by law or by JAMS Rules or by agreement of the parties.

 

6.2.4  The parties shall maintain the confidential nature of the arbitration proceeding and the award therefrom, including the hearing, except as may be necessary to prepare for or conduct the arbitration hearing on the merits, or except as may be necessary in connection with a court application for a preliminary remedy, a judicial challenge to an award or its enforcement, or unless otherwise required by law or judicial decision. 

 

6.3  Applicable Law:  The Party Agreements shall be governed by, construed, enforced and interpreted in accordance with the internal substantive law of the State of California applicable to agreements to be made and to be performed solely within such State, without giving effect to any conflicts or choice of laws principles which otherwise might be applicable and excluding the United Nations Convention on Contracts for the Sale of Goods; provided, however, that any Collaboration entity formed shall be formed in Delaware and shall be governed by, construed, enforced and interpreted in accordance with the internal substantive law of the State of Delaware applicable to agreements to be made and to be performed solely within such jurisdiction, without giving effect to any conflicts or choice of laws principles which otherwise might be applicable and excluding the United Nations Convention on Contracts for the Sale of Goods.  The parties acknowledge that the Party Agreements evidence a transaction involving interstate commerce.  Notwithstanding the provision in the preceding sentence with respect to applicable substantive law, any arbitration conducted pursuant to the terms of the Party Agreements shall be governed by the Federal Arbitration Act (9 U.S.C. §§ 1-16).

 

  

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6.4  Interim Relief:  For avoidance of doubt, nothing in this Section 6 shall be construed to preclude any party from seeking injunctive or other provisional relief in order to prevent irreparable harm pending mediation or arbitration; provided, however, that such relief may only be sought within the appropriate judicial forum as provided in Section 6.2 above.  In the event a party seeks interim relief without first attempting mediation, such party shall not forfeit its entitlement to legal fees and costs that would otherwise be available to it only if such party initiates mediation within fifteen (15) days after initiating the action seeking interim relief.  A request to a court for interim relief shall not be deemed a waiver of the obligation to mediate or arbitrate.

 

6.5  Legal Fees and Costs:  Except as otherwise provided herein, the prevailing party (if any) in any proceeding brought by one party against the other shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for the expenses reasonably incurred by it in such proceeding, including but not limited to court costs, reasonable attorneys’ fees, reasonable costs, reasonable expenses of expert witnesses, reasonable costs of appeal, and any other reasonable out-of-pocket expenses. Notwithstanding anything to the contrary, neither party will be entitled to recover or claim from the other any expenses incurred in connection with and/or pursuant to any negotiation or mediation efforts under Section 6.1.

 

7.  Disclosure:  Except as required by Applicable Law or regulation (including applicable securities laws), both parties agree that the details connected with the Collaboration and the Operating Agreements will not be published or disclosed without the other party’s written permission or to such party’s advisors or investors (pursuant to appropriate non-disclosure agreements); provided, however, that this Section 7 shall not restrict a party from repeating disclosures made by the other.

 

8.  Notices:  All notices required or permitted to be given under the Party Agreements shall be in writing and delivered in person or sent by first class certified or registered airmail, postage prepaid, by recognized overnight courier, or by electronic mail or facsimile transmission, if confirmed or acknowledged, to the address specified below or to such other address as may be specified in writing by the addressed party to the other party in accordance with this Section 8.  If notice is sent by electronic mail or facsimile transmission, a copy shall concurrently be sent by a permitted means other than electronic mail or facsimile transmission; provided, however, that in such event the effectiveness of such notice shall be based on the electronic mail or facsimile transmission notice.

 

If to WindStrip:

 

WindStrip, LLC

22 Duck Pass Rd

North Oaks, MN 55127

Attention:  Juha Rouvinen

Tel: +1 (651) 314-4486

Fax:  +1 (651) 689-0131

E-Mail:  juha.rouvinen@windstrip.com

 

  

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If to Verdant:

 

Verdant Automotive Corporation

12223 Highland Avenue, Suite 106-542

Rancho Cucamonga, California 91739

Attention:  General Counsel

Tel: +1 (909) 786-1981

Fax:  +1 (909) 647-9665

E-Mail:  rkasprzak@verdantautomotive.com

 

Each such notice or other communication shall for all purposes be treated as effective or as having been given as follows:  (i) if delivered in person, when delivered; (ii) if sent by U.S. mail, at the earlier of its receipt or at 5 p.m., local time of the recipient, on the third business day after deposit in a regularly maintained receptacle for the deposition of U.S. mail, as the case may be; (iii) if delivered by electronic facsimile transmission or email, on the first business day at the recipient’s location following the date of successful transmission; and (iv) if sent by recognized overnight courier service, on the date shown in the written confirmation of delivery issued by such courier service.  Either party may change the address and/or addressee(s) to whom notice must be given by giving appropriate written notice at least seven (7) days prior to the date the change becomes effective.

 

9.  Entire Agreement:  The Party Agreements and their Exhibits, all of which are incorporated herein by reference, set forth the entire understanding between WindStrip and Verdant with respect to the subject matter hereof and merges all prior agreements, dealings, negotiations, promises, representations and communications.  The terms of the Party Agreements shall govern any and all exchanges of confidential information regardless of any other document signed and/or executed or agreement made prior to September 15, 2011.  No modification, alteration or amendment of the Party Agreements or their Exhibits (whether express, implied, by custom, course of dealing or otherwise) shall be effective unless in writing and signed by both parties.

 

10.  Assignment and Delegation:  Except as expressly permitted under their terms, none of the Party Agreements nor any of the rights and obligations created hereunder may be assigned, transferred, pledged, delegated or otherwise encumbered or disposed of, in whole or in part, whether voluntarily or by operation of law or otherwise, by any party without the prior written consent of the other party, which consent shall not unreasonably be withheld; provided, however, that the foregoing shall not restrict or limit the assignment by a Party of its rights and delegation of its duties under any Party Agreement to a company succeeding to the entire business of such Party, subject to the assumption by such assignee company of all of the obligations of the respective Party under the assigned Party Agreement.  In the event of any such assignment, the assignee company shall be deemed to be a “Party” for all purposes and intents under the assigned Party Agreement.

 

11.  Applicable Law:  The Party Agreements shall be governed by and under the Applicable Law.  If any term or provision of any Party Agreement shall be determined to be invalid or unenforceable under Applicable Law, such provision shall be deemed severed from such agreement, and a reasonable valid provision to be mutually agreed upon shall be substituted.  In the event that no reasonable valid provision can be so substituted, the remaining provisions of such Agreement shall remain in full force and effect, and shall be construed and interpreted in a manner that corresponds as far as possible with the intentions of the parties as expressed in such Agreement.

 

12.  Term and Termination:

 

 12.1  The term of the Party Agreements will be for period stated in the specific agreement involved.

 

  

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12.2  In the event any material breach of a Party Agreement by either party is not corrected within sixty (60) days after delivery of written notice describing such breach, the particular Party Agreement may be terminated immediately upon further written notice of termination from the non-breaching party, provided however that this Section 12.2 shall not waive or relieve any party from the requirements of Section 6.

 

12.3  Either party shall also have the right to terminate such Party Agreement forthwith by giving written notice of termination to the other party at any time, upon or after:

 

12.3.1  the filing by such other party of a petition in bankruptcy or insolvency; or

 

12.3.2  any adjudication that such other party is bankrupt or insolvent; or

 

12.3.3  the filing by such other party of any legal action or document seeking reorganization, readjustment or arrangement of its business under any law relating to bankruptcy or insolvency; or

 

12.3.4  the appointment of a receiver or bankruptcy trustee for all or substantially all of the property of such other party; or

 

12.3.5  the making by such other party of any general assignment for the benefit of creditors; or

 

12.3.6  the institution of any proceedings for the liquidation or winding up of such other party’s business or for the termination of its corporate charter.

 

13.  Miscellaneous:

 

13.1  The failure of any Party to enforce, or the delay by any Party in enforcing any of its rights under the Party Agreements shall not be deemed a waiver or a containing waiver of such rights or a modification of any Party Agreement, and such party may, within the time provided by Applicable Law, commence appropriate proceedings to enforce any and/or all such rights.

 

13.2  Each Party expressly represents and warrants that it is free to enter into the Party Agreements and that it has not made and will not make any creations or commitments in conflict with the provisions of the Party Agreements, or which reasonably might interfere with the full and complete performance of its obligations under the Party Agreements.  Each Party further represents and warrants that the Party Agreements, and the performance of its respective obligations under the Party Agreements, and the consummation of the transactions contemplated under the Party Agreements have been duly authorized and approved by all necessary action, and all necessary consents or permits have been obtained, and neither the execution of the Party Agreements nor the performance of the Party’s obligations under the Party Agreements will violate any term or provision of any valid contract or agreement to which such party is subject and/or by which such party is bound.  No further actions or consents are necessary to make the Party Agreements valid and binding contract, enforceable against the respective parties in accordance with their terms.

 

13.3  No Party shall be entitled to act on behalf of and/or to bind any one or more of the others.

 

13.4  Unless otherwise indicated in the Party Agreements, all accounting terms used in the Party Agreements shall be construed, and all accounting and financial computations hereunder or thereunder shall be computed, in accordance with United States generally accepted accounting principles, applied in a consistent manner.

 

  

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13.5  The captions and section headings appearing in the Party Agreements are included solely for convenience of reference and are not intended to affect the interpretation of any provision of the Party Agreements.

 

13.6  All terms defined in the Party Agreements in the singular form shall have comparable meanings when used in the plural form and vice versa.

 

13.7  All references in the Party Agreements to a time of day shall mean Pacific Time, unless otherwise indicated. Time is of the essence in the performance of each Party’s obligations under the Party Agreements.

 

13.8  Neither any Party Agreement nor any uncertainty or ambiguity in any Party Agreement shall be construed or resolved using any presumption against any Party.  On the contrary, each Party acknowledges that the Party Agreements have been and will be reviewed by its legal counsel and, in the case of any ambiguity or uncertainty, shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intention of the Parties.

 

13.9  All calculations of fees or other charges under the Party Agreements for any period (1) shall include the first day of such period and exclude the last day of such period and (2) shall be calculated on the basis of a year of 365 days for actual days elapsed.  Any numbers or ratios required pursuant to the Party Agreements shall be calculated by carrying the result to one place more than the number of places by which such number or ratio is expressed in the Party Agreements and rounding the result up or down to the nearest number (with a round-up if there is no nearest number) to the number of places by which such number or ratio is expressed in the Party Agreements.

 

13.10  References in the Party Agreements to “Recitals,” “Sections,” “Exhibits” and “Attachments” are to recitals, sections, exhibits and attachments therein and thereto unless otherwise indicated.  References in the Party Agreements to any document, instrument or agreement (1) shall include all exhibits, schedules and other attachments thereto, (2) shall include all documents, instruments or agreements issued or executed in replacement thereof if such replacement is permitted hereby or thereby, and (iii) shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time to time and in effect at any given time if such amendment, modification or supplement is permitted hereby or thereby.

 

13.11  References in the Party Agreements to any law, rule, regulation or other provision with the force of law (“Rule”) (1) shall include any successor Rule, (2) shall include all rules and regulations promulgated under such Rule (or any successor Rule), and (3) shall mean such Rule (or successor Rule) and such rules and regulations, as amended, modified, codified or re-enacted from time to time and in effect at any given time.  References in the Party Agreements to any Person in a particular capacity (1) shall include any successors to and permitted assigns of such Person in that capacity and (2) shall exclude such Person individually or in any other capacity.  References in the Party Agreements to “Persons” or “persons” shall include individuals and legal entities, of whatever form.

 

13.12  The words “hereof,” “herein” and “hereunder” and words of similar import when used in the Party Agreements shall refer to the respective Party Agreement as a whole and not to any particular provision of the Party Agreement.  Unless the context clearly requires otherwise (1) the plural and singular numbers shall each be deemed to include the other; (2) the masculine, feminine and neuter genders shall each be deemed to include the others; (3) “shall”, “will” or “agrees” are mandatory and “may” is permissive; (4) “or” is not exclusive, and (5) “includes” and “including” are not limiting and mean “without limitation.”

 

13.13  In the event of any inconsistency between the terms of the Agreement and the terms of any other Party Agreement, the terms of the subsequent agreement shall govern.

 

  

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13.14  Each Party shall promptly execute, acknowledge and deliver, or promptly procure the execution, acknowledgement and delivery, of any and all further certificates, agreements and instruments which may be necessary or expedient to effectuate the purposes of the Party Agreements.

 

13.14  No Party shall have any right, power or ability to assign its rights or benefits or delegate its duties or obligations under the Party Agreements without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed.  Notwithstanding the first sentence of this Section 13.14, either Party, upon thirty (30) days prior written notice to the other, may assign its rights or delegate its duties or any portion thereof as a matter of right without the consent of the other Party to (1) an affiliate of the assignor, or (2) a corporation succeeding to substantially all of the business of the Party effecting such assignment, provided in either case that the assignee specifically assumes all obligations of the assignor Party under the respective Party Agreement, and provided further that the assignor shall continue to remain primarily liable for all obligations (monetary and non-monetary) assumed by the assignee.  No Party shall have the power to make an assignment in contradiction of this Section 13.14.  Any purported assignment, grant or transfer in contradiction of this Section 13.14 shall be void ab initio.

 

13.15  Except as described in the Party Agreements, no third person is a beneficiary of the Party Agreements and no third person is a guarantor of the performance by any Party, nor shall any third person have any liability with respect to the performance by any Party.

 

13.16  If a court or an arbitrator of competent jurisdiction holds any provision of any Party Agreement to be illegal, unenforceable or invalid in whole or in part for any reason: (1) such provision shall be in good faith adjusted rather than voided, if possible, to achieve the intent of the Parties, (2) the respective Party Agreement shall be read as if the invalid, illegal or unenforceable words or provisions had to that extent been deleted, and (3) the validity of the remainder of the respective Party Agreement shall not be affected thereby unless an essential purpose of the respective Party Agreement would be defeated by the loss of the illegal, unenforceable, or invalid provisions.

 

13.17  The Agreement, including the agreements referenced herein, expresses the entire understanding of the Parties with respect to the subject matter hereof.  The Agreement supersedes any terms or conditions contained on printed forms submitted with purchase orders, sales acknowledgments or invoices or any other form.  The Agreement also supersedes all previous agreements, representations or other communications (whether written or oral) between the Parties relating to the subject matter hereof.  There are no representations, warranties or other agreements between the Parties (whether express or implied) in connection with the subject matter of the Agreement except as specifically set forth herein.  Each Party hereby forever discharges and releases each of the other Parties and its successors, predecessors, employees, agents, representatives, heirs, assigns, officers, directors, shareholders, attorneys, insurers, or re-insurers and any other person now, previously, or hereafter expressly and formally affiliated in any manner with it from any and all claims, demands, causes of action, obligations, damages and liabilities, whether or not known, suspected or claimed, that it may now have, or may in the future have, against, or claim to have by reason of or related to any prior agreement or any act, failure to act, cause, matter or event whatsoever, whether related to the existence of or the subject matters encompassed within such un-continued prior agreements.  Each Party represents and warrants that it has not assigned to any person any claim or cause of action released pursuant to the foregoing provision.

 

13.18  The Party Agreements may not be modified, amended or waived, except by a writing executed by the Executive Sponsors.  Under no circumstance or conditions shall any other conduct be relied upon by the Parties.

 

13.19  Each Party has had access to legal counsel prior to the execution of the Agreement.  Both Parties acknowledge that the law firm of SML LLP has represented and will represent and advise Verdant in the preparation and negotiation of the Agreement.  Ted Maloney, who is a special advisor to the board of directors of WindStrip and who is a partners of SML LLP, has a separate economic and advisory interest in WindStrip.  Both Verdant and WindStrip waive any objection based upon conflict of interest, or otherwise, as to the foregoing engagements, activities and financial interest.  Each of Verdant and WindStrip further understands that SML LLP does not represent WindStrip in connection with the negotiation of the Agreement.

 

13.20  The Party Agreements, and any one or more of them, may be executed in several counterparts and all counterparts so executed shall constitute one agreement that is binding on all Parties, notwithstanding that all Parties are not signatories to the original or the same counterpart.  Facsimile and PDF signatures shall be acceptable as if original signatures had been exchanged.

 

 

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