Document:

exhibit10-20.htm

Exhibit 10.20

 

RESTRICTED STOCK AWARD AGREEMENT

 

THIS RESTRICTED STOCK AWARD AGREEMENT (this "Agreement") is entered into this 22nd day of December, 2011 (the "Grant Date"), by and between DYNAMIC VENTURES CORP., a Delaware corporation (the "Company") and Laurence M. Luke, an individual  residing in the State of Arizona (the "Participant").

 

RECITALS

 

WHEREAS, the Company  is a Delaware corporation  with authorized capita] stock as follows:

 

200,000,000 shares of common stock with par value $0.0001 (the "Common Stock"); and

 

WHEREAS, the Participant has entered into that certain a fiduciary  relationship with the Company, whereby the Participant shall serve as an independent director   of the Company, and the chairman  of its Audit Committee; and

 

WHEREAS, in connection  with service of the Particpant, the Company  desires to grant 1,000,000 shares of restricted Common  Stock (the "Restricted Shares") to the Participant.

NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.           Grant of Restricted Shares.  The Company hereby grants to the Participant the Restricted

 

Shares, subject to the tenns and conditions  of this Agreement.

 

2.           Vesting.

 

a.           Subject to Section 2(b) and (c) hereinbelow, the Restricted  Shares will vest one-third on each anniversary of the Grant Date, becoming 100% vested on the third anniversary of the Grant Date, provided that the Participant continuously serves the Company from the Grant Date through the applicable vesting date.

b.          The Participant’s service with the Company shall terminate immediately for cause upon the Participant's conviction  of a felony, acts of embezzlement or misappropriation of funds; fraud; a willful and intentional dereliction of fiduciary obligation; or a willul unauthorized disclosure  of confidential  information  belonging to the Company;  which is not cured by the Employee within 15 days of receiving written notice of such violation by the Company.  In the event that the Participant's  service with the Company  terminates  due to either (i) the death of
the Participant, (ii) the termination  of the Participant's  service by Company  for any reason other than cause as listed above, t ,or (iii) the

termination of the Participant's service  arising from a change in the control of the Company as it exists on

 

the Grant Date, the Restricted  Shares shall immediately vest as of the date of the Participant's  death or the termination  of the Participant's service  with the Company.

 

3.           Issuance  of Certificates/Escrow.

 

  

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a.           The Company will issue in the Participant's name certificate(s) evidencing the Restricted Shares as soon as practicable following the Participant's execution of this Agreement. In addition to any other legends placed on the certificate(s), such certificate(s) will bear the following legends:

 

"The sale or other transfer of the shares of common stock represented by this certificate, whether voluntary or by operation of law, is subject to restrictions set forth in the Restricted Stock Award Agreement, dated as of December[}, 2011, by and between Dynamic Ventures Corp. and the registered owner hereof. A copy of such agreement may be obtained from the Secretary of Dynamic Ventures Corp."

 

	
  

	
NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL  IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
(II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

 

b.           Upon the vesting of the Restricted Shares, the Participant will be entitled to a new certificate for the shares that have vested, without the first of the foregoing legends, upon making a request for such certificate to the Secretary of the Company.

 

c.           The certificates representing the Restricted Shares will be held in escrow by the Company, as escrow agent.  The Company will give the Participant a receipt for the Restricted Shares held in escrow that will state that the Company holds such shares in escrow for the Participant's account, subject to the terms of this Agreement, and the Participant will give the Company a stock power for such Restricted Shares duly endorsed in blank which will be used in the event
such any of shares are forfeited in whole or in part. As soon as practicable after the vesting date, the Restricted Shares will cease to be held in escrow, and certificate(s) for such number of shares of Restricted Shares will be delivered to the Participant or, in the case of the Participant's death, to the Participant's estate.

 

4.           Status of Participant. This Agreement shall neither confer upon the Participant any right to continue in the service of the Company, nor to interfere in any way with the right of the Company to terminate the service of the Participant at any time. This agreement shaH in not way impair or diminish any other compensation to which the Participant is entitled for his service to the Company.

 

5.           Nontransferability.  The Participant may not sell, transfer, assign, pledge, alienate, or hypothecate any of the Participant's Restricted Shares until they are vested, ot.I-J.er tha11  as set forth herein and any such attempted sale, transfer, assignment, pledge, alienation, or hypothecation will be null and void.

 

6.           Voting and Dividends. The Participant may exercise full voting rights and will receive all dividends and other distributions paid with respect to the Restricted Shares, whether or not vested, in each case so long as the applicable record date occurs before any forfeiture of such shares. If, however, any such dividends or distributions are paid in shares of Company capital stock, such shares will be
subject to the same risk of forfeiture, restrictions on transferability and other terms of this Agreement as is the Restricted Shares with respect to which they were paid.

 

  

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7.           Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, including the Company's initial public offering, the Participant shall not directly or

 

indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer or agree to engage in any of the foregoing transactions with respect to, any Restricted Shares acquired under this Agreement without the prior written consent of the Company and the Company's underwriters. Such restriction shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such underwriters.
In no event, however, shall such period exceed one hundred eighty (180) days. In addition, Participant shall abide by and adhere to any trading policy that the Company has or institutes.

 

8.           Tax Matters.

 

a.           The Participant (and not the Company) shall be responsible for the Participant's federal, state, local or foreign tax liability and any of the Participant's other tax consequences that may arise as a result of the transactions contemplated by this Agreement. The Participant shall rely solely on the determinations of the Participant's tax advisors or the Participant's own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax

 

matters.  The acquisition of the Restricted Shares may result in adverse tax consequences that may be avoided or mitigated by filing an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code"). Such election may be filed only within thirty (30) days after the date of this Agreement.  The Participant should consult with a tax advisor to determine the tax consequences of acquiring the Restricted Shares and the advantages and disadvantages of filing the Code Section 83(b) election.  The Participant acknowledges that it is the Participant's sole responsibility, and not the Company's, to file a timely election under Section 83(b) of the Code, even if the
Participant requests the Company or its representatives make this filing on the Participant's behalf. Attached is a form 83(b) election as Exhibit A for convenience.

 

b.           To the extent that d1e receipt of the Restricted Shares or the vestii1g of the Restricted Shares results in income to the Participant for federal, state or local income tax purposes, the Participant shall deliver to the Company at the time the Company is obligated to withhold taxes in connection with such receipt or vesting, as the case may be, such amount as the Company requires to meet its withholding obligation under applicable tax laws or regulations. If the Participant does not make an election under Code Section 83(b) in connection with this Award, the Participant may satisfy the withholding requirement, in whole or in part, by electing to
have the Company withhold for its own account that number of Restricted Shares otherwise deliverable to the Participant from escrow hereunder on the date the tax is to be determined having an aggregate Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that the Company must withhold in connection with the vesting of such Restricted Shares. The Participant's election must be irrevocable, in writing, and submitted to the Secretary of the Company before the applicable vesting date. The Fair Market Value of any fractional Restricted Shares not used to satisfy the withholding obligation (as determined on the date the tax is determined) will be paid to the Participant in cash.

 

  

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9.           Miscellaneous.

 

a. At the option of the Participant, he may require that his Restricted Shares by titled in the name of his self-trusteed living trust, and the trustee, who is also the Participant wil1 execute a copy of this document and agrees that all the provisions hereof applicable to the Participant shallapply to the trust.

b.           Each party to this Agreement (a) consents to the personal jurisdiction of the state and federal courts having jurisdiction in Maricopa County, Arizona, (b) stipulates that the proper, exclusive, and convenient venue for any legal proceeding arising out of this Agreement is in the state or federal courts located in Maricopa County, Arizona, and (c) waives any defense, whether asserted by a motion or pleading, that any such court is an improper or inconvenient venue.

 

c.           No legal action or proceeding may be brought with respect to this Agreement more than one year after the later of (i) the last date on which the act or omission giving rise to the legal action or proceeding occurred, or (ii) the date on which the individual bringing such legal action or proceeding had knowledge or should have had knowledge of such act or omission.

 

d.           This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company's assets and business, and upon the Participant's estate or any individual who obtains a right hereunder by will or the laws of descent and distribution.

 

10.            Investment Representation Statement. The Participant must complete the Investment

Representation Statement attached hereto as Exhibit B hereto to receive the Award.

 

SIGNATURES ON THE FOLLOWING PAGE

 

COMPANY:                                                                PARTICIPANT: 

 

DYNAMIC VENTURES CORP>, 

a Delaware Corporation          

 

PrintPaui Kalkbrenner, CEO      

 

  

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EXHIBIT A

 

ELECTION TO INCLUDE VALUE OF RESTRICTED PROPERTY IN GROSS INCOME IN YEAR

OF TRAN"SFER lJNDER CODE §83(b)

 

The undersigned hereby elects pursuant to Section 83 (b) of the Internal Revenue Code with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder.

 

I.          The name, address, and taxpayer identification number of the undersigned are:

 

 

 

	 Name: 	 Laurence M. Luke
	 Spouse's Name: 	 Kathleen E. Luke
	 Address:	 7705 E. Doubietree Ranch Rd. #23
	 City, State, Zip: Soc. 	 Scottsdale, AZ 85258
	 Sec. Number: Spouse's 	 
	 Soc. Sec. Num:	 

 

 

 

  

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2.          The property with respect to which this election is being made consists of  One Million

 

(1,000,000) shares of Common Stock (the "Shares") of DYNAMIC VENTURES CORP, 

 

a Delaware corporation  (the "Company").

 

3.          The date on which the property was transferred was  December 22, 2011

 

 

	
  

	
4.

	
The Shares are subject to forfeiture, subject to the undersigned's continuing performance of service on behalf of the Company,  as set forth in a Restricted  Stock Award Agreement  entered into by the undersigned  in connection with the undersigned's acquisition of such Shares.

 

	
  

	
5.

	
The fair market value at the time of the transfer (determined  without regard to any restrictions, other than those which by their term will never lapse) of the Shares is
$ c?.of'Per Share.

 

6.          The Shares were acquired  by the undersigned in consideration for services.

 

7.          A copy of this statement has been furnished to the Company.

 

Dated:   December 22, 2011

 

 

	 Taxpayer:	 
	 	 Print
	 	
 Name:

	
 

Spouse:

	
 

 Print

	 	 Name:

 

 

  

A-1

 

EXIDBIT B 

DYNAMIC VENTURES CORP

INVESJMENT REPRESENTATION STATEMENT

 

 

 

TRANSFEREE:       Laurence M. Luke, a resident of Arizona  ("Transferee") 

 

ISSUER:          Dynamic Ventures Corp. a Delaware corporation

 

SECURITY:            1,000,000 shares of Common Stock (the "Shares")

DATE:         December 22, 2011 

 

 

  

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Transferee represents and warrants to the Issuer the following in connection with the Restricted Stock Award Agreement dated December   , 20II, between Transferee and Issuer, Issuer issued the Shares to Transferee, and, in connection t.':terewith:

 

1.          Transferee understands that an investment in the Shares is speculative. Transferee is aware of the Issuer's business affairs and financial condition and has acquired sufficient information about the Issuer to reach an informed and knowledgeable decision to acquire the Shares. Transferee is

acquiring the Shares not with a view to, or for resale in connection with, any "distribution," within the meaning of the Securities Act of 1933, as amended ("Securities Act").

 

2.           Transferee understands that the Shares have not been registered under the Securities Act and are being transferred to the Transferee by reason of a specific exemption therefrom, which exemption depends upon, among other things, the accuracy of Transferee's representations and warranties as set forth herein.

 

3.           Transferee understands that the Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is

available. Transferee further acknowledges and understands that the Issuer is under no obligation to register the Shares. Transferee understands that the instrument evidencing the Shares will be imprinted with a legend which prohibits the transfer of the Shares unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Issuer.

 

4.           Transferee is aware of the adoption of Rule I44 by the Securities and Exchange Commission, promulgated under the Securities Act, which permits limited public resale of shares acquired in a non-public offering subject to the satisfaction of certain conditions. Transferee understands that if the Issuer is not satisfYing the current public information requirement of Rule 144 at the time Transferee wishes to sell the Shares, Transferee would be precluded from selling the Shares under Rule I44 even if the minimum holding period has been satisfied.

 

 

B-1

5.           Transferee is capable of bearing the economic risk and burden of the investment and the possibility of complete loss of all of the investment, and the lack of a public market such that it may not be possible to readily liquidate the investment whenever desired.

 

 

 

	 	 Very truly yours,
	 By:	 
	 	 Transferee

 

 

 

 

 

 

  

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Exhibit 10.21

 

EMPLOYMENTAGREEMENT

 

This  EMPLOYMENT AGREEMENT (this "Agreement')  is made  as  of February 1, 2012, by and between Dynamic Ventures Corp., a Delaware corporation (the "Company"), and Paul D. Kalkbrenner, hereinafter referred to as the "Employee."

 

 

Preliminary Statements

 

A.        The Company desires to engage Employee to act as the Chief Executive Officer and President of the Company and Employee accepts such engagement and, in each case pursuant to the terms and conditions set forth in this Agreement.

 

 

Agreement

 

In consideration of the foregoing, the mutual promises set forth in this Agreement, and other good and valuable consideration, the Company and Employee hereby agree as follows:

 

 

      1.     Scope of Work. During the term of this Agreement, Employee shall perform the work and render the services set forth in Schedule "A" attached hereto and made a part hereof (the "Scope of Work").  Except as expressly provided in this
Agreement, the Scope of Work may not be subcontracted or otherwise performed by third parties on behalf of Consultant, other than the Employee, without the prior written permission of the Company which permission shall be in the sole and absolute discretion of the Company. The Employee shall perform such other services as the  Board of  Directors of  the Company may assign if the Employee agrees to accept the assignment.

 

 

      2.        Term and Termination. The term of this Agreement shall commence on the date of this Agreement (the
"Commencement Date") and shall continue in full force and effect thereafter on annual periods which shall automatically renew, until termination in accordance with the provisions of this Agreement. In the event of any material breach of this Agreement by either party, the other party may terminate this Agreement by giving thirty (30) days'  prior written notice thereof;
provided, however, that this Agreement shall not terminate at the end of said thirty (30) day notice period if the party in breach has cured the breach of which it has been notified prior to the expiration of such thirty (30) day period. Either party may extend this Agreement by written notice thirty (30) days prior to thee end of any term or extension. If the Employee is terminated for reasons other than a breach of the terms
hereof, or the Employee resigns, the Employee shall be entitled to  a  severance payment of $500,000, payable in  eight  (8)  equal quarterly installments.

 

 

     

  

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       3.        Compensation.     As  compensation for  the  satisfactory performance by Employee hereunder, the Company shall pay Employee a salary of One Hundred Forty Four Thousand Three Hundred Dollars ($144,300) per year to be paid in equal semi­ monthly payments during the  term of this  Agreement
(the  "Base Compensation"). Employee acknowledges and agrees that the sum of Twenty-five Thousand Dollars ($25,000) of the annual Base Compensation has been allocated as consideration for the Restrictive Covenants. Employee shall also invoice the Company monthly in arrears for expenses incurred as a result of performing services in accordance with this Agreement. Such expenses shall be limited to the use of a cellular telephone, a laptop computer and other reasonable out-of-pocket expenses (including, without limitation, airfare, car rental, hotel and meals), and an automobile allowance, all as necessarily and actually incurred by Employee
in the performance of the Scope of Work, provided that (i) the expenses have been detailed on a form acceptable to the Company; and (iii) Employee submits supporting documentation. The charges and/or expenses invoiced in accordance with this paragraph, except for  amounts disputed by the  Company, shall  be  payable by the Company within thirty (30) days of the Company's receipt of each invoice. Any disputed charges  and/or  expenses  shall  not  affect payment  of  non-disputed charges  and/or
expenses, in accordance with the terms of this Agreement.  In addition the Employee shall be entitled to use a Company credit card to cover his out-of-pocket expenses but still must comply with the reporting requirements of this paragraph.

 

4.     Other benefits.   The Employee shall be entitled to four (4) weeks of paid vacation per calendar year.   If the Employee is disabled from performing his services hereunder he will be entitled to receive all of his base compensation for ninety (90) days. Should the Employee be unable to return to his full duties at the end of one hundred and twenty (120)
days the Employee may be terminated at the sole discretion of the Board of Directors of the Company. In the event of the death of the Employee his widow, or in absence thereof his estate, shall be entitled to receive a salary continuation of two (2) months from his date of  death. The Employee shall be entitled to  health care, life insurance and disability coverages as are made available from time to time to its other senior executives and  their  dependents. In  addition to  the  base compensation, the Employee shall be entitled to receive any discretionary bonus as may be authorized from time to time by the Board of Directors of the Company.

 

5.     Work Made for Hire.  Employee hereby agrees that all work, including
developments, designs, inventions, improvements, trade  secrets, trademarks, copyrightable subject  matter or  proprietary information which Employee makes or conceives within the Scope of Work, either solely by Employee or jointly with others and relating to any actual or planned product, service or activity of which Employee has knowledge or suggested by or resulting from any work performed by the Company or otherwise related to this Agreement (a "Development") shall be considered to be "work
made for hire" under the U.S. Copyright Act, 17 U.S.C. § 101
et seq. and shall be O\\Tied exclusively by the Company.  Furthermore, Employee hereby assigns to the Company, and will in the future upon the Company's request confirm  such assignment to the Company, of  all  right,  title  and  interest in  such  Development or  portion thereof. Employee agrees that he has no proprietary interest in any Development, including any patent, copyright, trademark and trade secret rights.   Employee agrees that he shall provide necessary
assistance to protect, enforce or perfect the Company's rights and interests in such patents, copyrights and trademarks and that Employee shall not register, file or obtain any patent, copyright  or trademark relating to any Development in its own name.

 

  

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        6.     Representations and Warranties of Consultant.   Employee represents and warrants to the Company that (a) Employee is under no contractual or other restriction or obligation which is inconsistent with the execution of this Agreement, the performance of his duties hereunder, or the other rights of the Company hereunder; and (b) Employee is under no physical or mental disability that would hinder the performance  of his duties under  this Agreement, (c) that  the  Employee shall devote its full  time, attention  and energy  to the business of the  Company, and , during the term  of
this  Agreement  the Employee will not engage in any other activity pursued for profit.

 

 

       7.      Confidential Information:
Employee recognizes and acknowledges that in
the course of performing services hereunder, Employee shall have access to confidential
information concerning the Company,
including, without limitation, business affairs, finances,  properties,
 methods   of   operation,  product  plans,  identities   or
 landlords,
licensors, distributors, joint venturers and other data of the Company and its subsidiaries and affiliates.
All such information is hereinafter collectively referred to as "Confidential Information."

 

 

       8.    Non-Disclosure.  Employee agrees that Employee will keep in strictest confidence, both during the term of this Agreement and subsequent to the expiration or earlier termination of this Agreement, and will not during the term of this Agreement or thereafter  disclose  or  divulge  to  any
person,  firm  or  corporation,  or  use directly  or indirectly, for  his own benefit  or the benefit of others, any Confidential  Information. Except as directed by the Company, Employee will not permit any person other than the Company, its authorized agents or representative, to examine and/or make copies of any software, videos, programs, reports or any materials or documents prepared by Employee or that come into Consultant's  possession or under Consultant's  control by reason of Consultant's services hereunder, and that upon termination of this Agreement, Employee will turn over to the Company all documents, papers and other matter in his possession or under
his control that relate to the Company or its subsidiaries and affiliates.

 

 

       9.     Noncompetition.  The parties hereto acknowledge that if Employee were to compete with the Company upon the termination of this Agreement with the Company, Employee would necessarily use Confidential Information
in doing so.  During the term of  this Agreement and for  a period  of two (2) years thereafter,  or  if this Agreement terminates  prior  to  the  third  (3rd) anniversary date  of  this  Agreement,  then for  the remainder of the term of this Agreement after such termination and for a period of two (2) years thereafter (the
"Restricted Period"), Employee shall not have any ownership interest, direct or indirect, in, or have any interest as an employee, salesman, consultant, officer or director in, or otherwise  aid or assist in any manner,  any firm, corporation, partnership, proprietorship or other business that engages  in the business of the Company immediately  prior  to the  date  hereof;
provided, however,   that  Employee  may own, directly or indirectly, solely as an investment, securities of any entity which are traded on any  national securities  exchange if  Employee(a) is  not a controlling  person  of,  or  a member of a group which controls, such entity; or (b) does not, directly or indirectly, own five percent (5%) or more of any class of securities of any such
entity.

 

  

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       10.   Solicitation of Business.   Except as expressly provided in Paragraph 9 of this Agreement, Employee shall not, during the
Restricted Period, solicit or assist any other person to solicit any business (other than for the Company) from any present or past customer of the Company; or request or advise any present or future customer of the Company to  withdraw, curtail or  cancel its  business  dealings with  the  Company;  or commit any other act or assist others to commit any other act which might injure the business of the Company.

 

11.   Solicitation of Employees.     Employee  shall  not,  during  the  Restricted Period, directly or indirectly, hire, solicit or encourage to leave the employment of
the Company or any of its Affiliates, any employee of the Company or any of its Affiliates or hire any such employee who has left the employment  of the Company or any of its Affiliates within one (1) year of the termination of such employee's employment with the Company or any of its Affiliates.

 

 

       12.   Solicitation of Suppliers, Manufacturers and Consultants.   Employee shall not, during the Restricted Period, directly or indirectly, hire, solicit or encourage to cease work  with  the  Company  or  any  of  its  Affiliates  any  supplier,  manufacturer  and/or Employee then under contract with the Company or any of its Affiliates within one (1)
year  of  termination  of  such  consultant's  engagement  by the  Company  or  any of its Affiliates.

 

 

       13.   Rights and Remedies Upon Breach.   If Employee breaches or threatens to commit a breach of any of the provisions of Paragraphs 6, 8, 9, 10, 11 and/or 12 ofthis Agreement (the "Restrictive Covenants"), the Company shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and
all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity:

 

(a)          Specific Performance. The right and remedy to have the Restrictive  Covenants specifically enforced  by  any court  having equity jurisdiction, all without the need to post a bond or any other security or to prove any amount of actual damage or that money damages would not provide an adequate remedy, it
being acknowledged  and agreed that any such  breach  or  threatened  breach cause  irreparable  injury  to  the Company and that money damages will not provide adequate remedy to the Company; and

 

(b)       Accounting and Indemnification.  The right and remedy to require Employee(i) to account for and pay over to the Company all
compensation,  profits,  monies,  accruals,  increments  or  other  benefits derived or received by Employee or any associated  party  deriving such benefits as a result of any such breach of the Restrictive Covenants; and

 

(ii) to indemnify the Company against any other losses, damages (including special and consequential damages), costs and expenses, including actual attorneys' fees and court costs, which may be incurred by the Company and which result from or arise out of any such breach or threatened breach of the Restrictive Covenants.

 

 

  

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14. Right  of  Employee to
 Terminate. The  Employee  may  terminate  this Agreement   without notice on the occurrence of any of the following events, unless consented to by the Employee in writing in advance:

 

(a) The sale of substantially all of the Company's assets to a single purchaser or group of associated purchasers; or

 

(b) A change of control of the Company by the sale, exchange, or other disposition, in one transaction of the sufficient shares of the common or preferred stock of the Company whereby parties deemed inimical to the Employee may gain voting control of the Board of Directors of the Company, (excluding a merger with a publicly held corporation where the Company is not the surviving entity); or

 

(c) The Company's decision to terminate its business and liquidate its assets; or

 

(d) A judicial determination of Bankruptcy or a chapter 11 reorganization petition filing.

 

15.   Severability of  Covenants.   If  any  court  determines  that  any  of  the Restrictive Covenants, or any part thereof is invalid or unenforceable, the
remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portions. If any court determines that any of the Restrictive Covenants, or any part thereof are unenforceable because of the duration of such provision or the area covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced. Employee hereby waives any and all right to attack the validity of the Restrictive Covenants on the grounds of the breadth of their geographic scope or the length of their term.

 

16.   Enforceability.  The  provisions of  this  Agreement shall  be enforceable notwithstanding the existence of any claim or cause of action of Employee against the Company whether predicated on this Agreement or otherwise.

 

17.   Work Rules. Unless otherwise agreed to by the parties hereto, Employees hall observe the working rules, security regulations, holiday schedules and policies of the Company.

 

 

    18.   Assignment.   This Agreement shall be binding upon the parties' respective successors and permitted assigns.  Employee agrees that any assignment hereunder shall not relieve Employee of its obligations hereunder.

 

 

  

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19.   Notices.  Notice given by a party under this Agreement shall be in writing and shall be deemed duly given (i) when delivered by hand, (ii) when five (5) days have elapsed after its transmittal by registered or certified mail, postage prepaid, return receipt requested, or two days have elapsed after its transmittal by nationally recognized air courier service; or (iii) when delivered by telephonic facsimile transmission (with a copy thereof so delivered by band, mail or air courier if recipient does not acknowledge receipt of the transmission). Notices shall be sent to the
addresses set forth below, or another as to which that party has given notice, in each case with a copy provided in the same manner and at the same time to the persons shown below:

 

If to the Company:       Dynamic Ventures Corp.

                8776 E. Shea Blvd, Ste. B3A 615

                Scottsdale, AZ 85260

 

If to the Employee:       Paul D. Kalkbrenner

                8776 E. Shea Blvd, Ste B3A 615

                    Scottsdale, AZ 85260

 

 

 

 20.    Governing  Law.   This Agreement shall be governed  by and construed  in accordance with the laws of the State of Delaware (without giving effect to conflicts of law).   The sole jurisdiction  and venue for any litigation arising out of this Agreement shall be an appropriate federal or state court located in the State of Arizona.

 

21.   Modifications.   No modification, amendment,  supplement to or waiver of this Agreement or any Schedule hereunder, or any of their provisions shall be binding upon the parties hereto unless made in writing and duly signed by both parties.

 

22.    Waiver.  A failure of either party to exercise any right provided for herein, shall not be deemed to be a waiver of any right hereunder.

 

23.    Complete Agreement.   This Agreement and each Schedule attached hereto set forth the entire understanding of the parties as to the subject matter therein may not be modified except in a writing executed by both parties.

 

24.   Severability.     In  the  event  a..11yone  or  more  of  the  provisions of  this Agreement or of any schedule is invalid or otherwise unenforceable, the enforceability of the remaining provisions shall be unimpaired.

 

25.   Publicity.   The Company and Employee agree that they will not, without prior  written  consent  of  the  other  in  each  instance,  refer  to  the  existence  of  this

  

Page - 6

  

 

 

Agreement or any Schedule, in  press release, advertising or  materials distributed to prospective customers.

 

26.   Remedies. The rights and remedies of the Company as set forth in this Agreement are not exclusive and  are in  addition to any other rights and remedies available to it in law or in equity.

 

27.  Headings. The headings contained in this Agreement are for purposes of convenience only and shall not affect the meaning or interpretation of this Agreement.

 

28.        Survival. All representations, warranties and covenants contained in this

 

Agreement shall survive the termination of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date hereo£

COMPANY:                                                                  EMPLOYEE:

 

Dynamic Ventures Corp.

 

a  Delaware  Corporation

 

By:                                              

David C. Brown, Executive Vice President                                                       Paul D. Kalkbrenner

  

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