Document:

Exhibit 4.6

 

THIS WARRANT HAS NOT BEEN REGISTERED
 UNDER THE SECURITIES ACT OF 1933
 AND IS NOT TRANSFERABLE
 EXCEPT AS PROVIDED HEREIN

NuVim, Inc.

PURCHASE WARRANT

Issued to:

PAULSON INVESTMENT COMPANY, INC.

Exercisable to Purchase

150,000 UNITS

of

NUVIM, INC.

 

Void after _____________, 2010

          This is to certify that, for value received and subject to the terms and conditions set forth below, the Warrantholder (hereinafter defined) is entitled to purchase, and the Company promises and agrees to sell and issue to the Warrantholder, at any time on or after ______________, 2005 and on or before ____________, 2010, up to 150,000 Units (hereinafter defined) at the Exercise Price (hereinafter defined).

          This Warrant Certificate is issued subject to the following terms and conditions:

          1.       DEFINITIONS OF CERTAIN TERMS.  Except as may be otherwise clearly required by the context, the following terms have the following meanings:

                    (a)     “Act” means the Securities Act of 1933, as amended.

                    (b)     “Cashless Exercise” means an exercise of Warrants in which, in lieu of payment of the Exercise Price, the Holder elects to receive a lesser number of Securities such that the value of the Securities that such Holder would otherwise have been entitled to receive but has agreed not to receive, as determined by the closing price of such Securities on the date of exercise or, if such date is not a trading day, on the next prior trading day, is equal to the Exercise Price with respect to such exercise.  A Holder may only elect a Cashless Exercise if Securities issuable by the Company on such exercise are publicly traded securities.

                    (c)     “Closing Date” means the date on which the Offering is closed.

                    (d)     “Commission” means the Securities and Exchange Commission.

                    (e)     “Common Stock” means the common stock, par value $0.00001, of the Company.

                    (f)     “Company” means NuVim, Inc., a Delaware corporation.

                    (g)     “Company’s Expenses” means any and all expenses payable by the Company or the Warrantholder in connection with an offering described in Section 6 hereof, except Warrantholder’s Expenses.

                    (h)     “Effective Date” means the date on which the Registration Statement is declared effective by the Commission.

                    (i)     “Exercise Price” means the price at which the Warrantholder may purchase one Unit upon exercise of Warrants as determined from time to time pursuant to the provisions hereof.  The initial Exercise Price is $________ per Unit.

                    (j)     “Offering” means the public offering of Units made pursuant to the Registration Statement.

                    (k)     “Participating Underwriter” means any underwriter participating in the sale of the Securities pursuant to a registration under Section 6 of this Warrant Certificate.

                    (l)     “Registration Statement” means the Company’s registration statement (File No. 333-____________) as amended on the Closing Date.

                    (m)     “Rules and Regulations” means the rules and regulations of the Commission adopted under the Act.

                    (n)     “Securities” means the securities obtained or obtainable upon exercise of the Warrant or securities obtained or obtainable upon exercise, exchange, or conversion of such securities.

                    (o)     “Unit” means one share of Common Stock, one redeemable Class A Warrant and one non-redeemable Class B Warrant.

                    (p)     “Unit Warrants” means the Class A Warrants and the Class B Warrants.

                    (q)     “Warrant Agreement” means that certain Warrant Agreement, dated as of ____________, 2005, by and between the Company and [__________] Stock Transfer & Trust Company relating to the issuance of Unit Warrants.

                    (r)     “Warrant Certificate” means a certificate evidencing the Warrant.

                    (s)     “Warrantholder” means a record holder of the Warrant or Securities.  The initial Warrantholder is Paulson Investment Company, Inc.

                    (t)     “Warrantholder’s Expenses” means the sum of (i) the aggregate amount of cash payments made to an underwriter, underwriting syndicate, or agent in connection with an offering described in Section 6 hereof multiplied by a fraction the numerator of which is the aggregate sales price of the Securities sold by such underwriter, underwriting syndicate, or agent in such offering and the denominator of which is the aggregate sales price of all of the securities sold by such underwriter, underwriting syndicate, or agent in such offering and (ii) all out-of-pocket expenses of the Warrantholder, except for the fees and disbursements of one firm retained as legal counsel for the Warrantholder that will be paid by the Company.

                    (u)     “Warrant” means the warrant evidenced by this certificate, any similar certificate issued in connection with the Offering, or any certificate obtained upon transfer or partial exercise of the Warrant evidenced by any such certificate.

          2.    
   EXERCISE OF WARRANT.  All or any part of the Warrant represented by this Warrant Certificate may be
exercised commencing one hundred eighty (180) days after the Effective Date and ending at 5:00 p.m. Pacific Time on the fifth
anniversary of the Effective Date by surrendering this Warrant Certificate, together with appropriate instructions, duly
executed by the Warrantholder or by its duly authorized attorney, at the office of the Company at NuVim, Inc., 12 Route 17 North,
Suite 210, Paramus, New Jersey 07652, Attention: President; or at such other office or agency as the Company may designate. 
The date on which such instructions are received by the Company shall be the date of exercise.  If the Holder has elected a
Cashless Exercise, such instructions shall so state. Upon receipt of notice of exercise, the Company shall immediately instruct its
     transfer agent to prepare certificates for the Securities to be received by
     the Warrantholder upon completion of the Warrant exercise.  When such
     certificates are

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prepared, the Company shall notify the Warrantholder and deliver such certificates to the Warrantholder or as per the Warrantholder’s instructions immediately upon payment in full by the Warrantholder, in lawful money of the United States, of the Exercise Price payable with respect to the Securities being purchased, if any.  If the Warrantholder shall represent and warrant that all applicable registration and prospectus delivery requirements for their sale have been complied with upon sale of the Securities received upon exercise of the Warrant, such certificates shall not bear a legend with respect to the Securities Act of 1933, as amended.

          If fewer than all the Securities purchasable under the Warrant are purchased, the Company will, upon such partial exercise, execute and deliver to the Warrantholder a new Warrant Certificate (dated the date hereof), in form and tenor similar to this Warrant Certificate, evidencing that portion of the Warrant not exercised.  The Securities to be obtained on exercise of the Warrant will be deemed to have been issued, and any person exercising the Warrants will be deemed to have become a holder of record of those Securities, as of the date of the payment of the Exercise Price.

          3.       ADJUSTMENTS IN CERTAIN EVENTS.  The number, class, and price of Securities for which this Warrant Certificate may be exercised are subject to adjustment from time to time upon the happening of certain events as follows:

                    (a)     If the outstanding shares of the Company’s Common Stock are divided into a greater number of shares or a dividend in stock is paid on the Common Stock, the number of shares of Common Stock for which the Warrant is then exercisable will be proportionately increased and the Exercise Price will be proportionately reduced; and, conversely, if the outstanding shares of Common Stock are combined into a smaller number of shares of Common Stock, the number of shares of Common Stock for which the Warrant is then exercisable will be proportionately reduced and the Exercise Price will be proportionately increased. The increases and reductions provided for in this Section 3(a) will be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of the Company obtainable
on exercise of the Warrants nor the price payable for such percentage upon such exercise will be affected by any event described in this Section 3(a).

                    (b)     In case of any change in the Common Stock through merger, consolidation, reclassification, reorganization, partial or complete liquidation, purchase of substantially all the assets of the Company, or other change in the capital structure of the Company, other than changes in par value, then, as a condition of such change, lawful and adequate provision will be made so that the holder of this Warrant Certificate will have the right thereafter to receive upon the exercise of the Warrant the kind and amount of shares of stock or other securities or property to which he would have been entitled if, immediately prior to such event, he had held the number of shares of Common Stock obtainable upon the exercise of the Warrant.  In any such case, appropriate adjustment will be made in the application of the provisions
set forth herein with respect to the rights and interest thereafter of the Warrantholder, to the end that the provisions set forth herein will thereafter be applicable, as nearly as reasonably may be, in relation to any shares of stock or other property thereafter deliverable upon the exercise of the Warrant.  The Company will not permit any change in its capital structure to occur unless the issuer of the shares of stock or other securities to be received by the holder of this Warrant Certificate, if not the Company, agrees to be bound by and comply with the provisions of this Warrant Certificate.

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                    (c)     When any adjustment is required to be made in the number of shares of Common Stock, other securities, or the property purchasable upon exercise of the Warrant, the Company will promptly determine the new number of such shares or other securities or property purchasable upon exercise of the Warrant and (i) prepare and retain on file a statement describing in reasonable detail the method used in arriving at the new number of such shares or other securities or property purchasable upon exercise of the Warrant and (ii) cause a copy of such statement to be mailed to the Warrantholder within thirty (30) days after the date of the event giving rise to the adjustment.

                    (d)     No fractional shares of Common Stock or other securities will be issued in connection with the exercise of the Warrant, but the Company will pay, in lieu of fractional shares, a cash payment therefor on the basis of the mean between the bid and asked prices of the Common Stock in the over-the-counter market or the last sale price of the Common Stock on the principal exchange or other trading facility on which the Common Stock is traded on the day immediately prior to exercise.

                    (e)     If securities of the Company or securities of any subsidiary of the Company are distributed pro rata to holders of Common Stock, such number of securities will be distributed to the Warrantholder or its assignee upon exercise of its rights hereunder as such Warrantholder or assignee would have been entitled to if this Warrant Certificate had been exercised prior to the record date for such distribution.  The provisions with respect to adjustment of the Common Stock provided in this Section 3 will also apply to the securities to which the Warrantholder or its assignee is entitled under this Section 3(e).

                    (f)     Notwithstanding anything herein to the contrary, there will be no adjustment made hereunder on account of the sale by the Company of the Common Stock or other Securities purchasable upon exercise of the Warrant.

                    (g)     If, immediately prior to any exercise of Warrants, there shall be outstanding no securities of a class or series that, but for the provisions of this Section 3, would be issuable upon such exercise (the “FORMERLY ISSUABLE SECURITIES”), then, upon such exercise, and in lieu of the Formerly Issuable Securities, the Company shall issue that number and kind of other securities or property for which the Formerly Issuable Securities were most recently exercisable or into which the Formerly Issuable Securities were most recently convertible, as the case may be.

          4.       RESERVATION OF SECURITIES.  The Company agrees that the number of shares of Common Stock or other Securities sufficient to provide for the exercise of the Warrant upon the basis set forth above will at all times during the term of the Warrant be reserved for exercise.

          5.       VALIDITY OF SECURITIES.  All Securities delivered upon the exercise of the Warrant will be duly and validly issued in accordance with their terms, and the Company will pay all documentary and transfer taxes, if any, in respect of the original issuance thereof upon exercise of the Warrant.

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6.       REGISTRATION OF SECURITIES ISSUABLE ON EXERCISE OF WARRANT CERTIFICATE.

              
      (a)     The Company will register the Securities on Form S-3 or any
successor form with the Commission pursuant to the Act so as to allow the unrestricted sale of the Securities to the public from
time to time commencing one hundred eighty (180) days after the Effective Date and ending at 5:00 p.m. Pacific Time on the fifth anniversary
of the Effective Date (the “REGISTRATION PERIOD”).  The Company will also file such applications and other documents
necessary to permit the sale of the Securities to the public during the Registration Period in those states in which the Warrantholders
reside or such other states as to which the Company and the Warrantholder agree.  In order to comply with the provisions of this
Section 6(a), the Company is not required to file more than one registration statement.  No
registration right of any kind, “piggyback” or otherwise, will last longer than five years from the Effective Date.

                    (b)     The Company will pay all of the Company’s Expenses and each Warrantholder will pay its pro rata share of the Warrantholder’s Expenses relating to the registration, offer, and sale of the Securities.

                    (c)     Except as specifically provided herein, the manner and conduct of the registration, including the contents of the registration statement, will be entirely in the control and at the discretion of the Company.  The Company will file such post-effective amendments and supplements as may be necessary to maintain the currency of the registration statement during the period of its use.  In addition, if the Warrantholder participating in the registration is advised by counsel that the registration statement, in their opinion, is deficient in any material respect, the Company will use its best efforts to cause the registration statement to be amended to eliminate the concerns raised.

                    (d)     The Company will furnish to the Warrantholder the number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as it may reasonably request in order to facilitate the disposition of Securities owned by it.

                    (e)     The Company will, at the request of Warrantholders holding at least 50 percent of the then outstanding Warrants: (i) furnish an opinion of the counsel representing the Company for the purposes of the registration pursuant to this Section 6, addressed to the Warrantholders and any Participating Underwriter; (ii) furnish an appropriate letter from the independent public accountants of the Company, addressed to the Warrantholders and any Participating Underwriter; and (iii) make such representations and warranties to the Warrantholders and any Participating Underwriter as are customarily given to underwriters of public offerings of equity securities in connection with such offerings.  A request pursuant to this subsection (e) may be made on three occasions.  The documents required to be delivered pursuant
to this subsection (e) will be dated within ten days of the request and will be, in form and substance, equivalent to similar documents furnished to the underwriters in connection with the Offering, with such changes as may be appropriate in light of changed circumstances.

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          7.       INDEMNIFICATION IN CONNECTION WITH REGISTRATION. 

                    (a)     If any of the Securities are registered, the Company will indemnify and hold harmless each selling Warrantholder, any person who controls any selling Warrantholder within the meaning of the Act, and any Participating Underwriter against any losses, claims, damages, or liabilities, joint or several, to which any Warrantholder, controlling person, or Participating Underwriter may be subject under the Act or otherwise; and it will reimburse each Warrantholder, each controlling person, and each Participating Underwriter for any legal or other expenses reasonably incurred by the Warrantholder, controlling person, or Participating Underwriter in connection with investigating or defending any such loss, claim, damage, liability, or action, insofar as such losses, claims, damages, or liabilities, joint or several (or
actions in respect thereof), arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained, on the effective date thereof, in any such registration statement or any preliminary prospectus or final prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Company will not be liable in any case to the extent that any loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any registration statement, preliminary prospectus, final prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with written information furnished by a Warrantholder for use in the preparation thereof.  The indemnity agreement contained in this
subparagraph (a) will not apply to amounts paid to any claimant in settlement of any suit or claim unless such payment is first approved by the Company, such approval not to be unreasonably withheld.

                    (b)     Each selling Warrantholder, as a condition of the Company’s registration obligation, will indemnify and hold harmless the Company, each of its directors, each of its officers who have signed any registration statement or other filing or any amendment or supplement thereto, and any person who controls the Company within the meaning of the Act, against any losses, claims, damages, or liabilities to which the Company or any such director, officer, or controlling person may become subject under the Act or otherwise, and will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, or controlling person in connection with investigating or defending any such loss, claim, damage, liability, or action, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue or alleged untrue statement of any material fact contained in said registration statement, any preliminary or final prospectus, or other filing, or any amendment or supplement thereto, or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in said registration statement, preliminary or final prospectus, or other filing, or amendment or supplement, in reliance upon and in conformity with written information furnished by such Warrantholder for use in the preparation thereof; provided, however, that the indemnity agreement contained in this subparagraph (b) will not apply to amounts paid to any claimant in settlement of any suit or claim unless such payment is first approved by the
Warrantholder, such approval not to be unreasonably withheld.

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                    (c)     Promptly after receipt by an indemnified party under subparagraphs (a) or (b) above of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party, notify the indemnifying party of the commencement thereof; but the omission to notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party otherwise than under subparagraphs (a) and (b), except to the extent it was prejudiced by such failure to notify.

                    (d)     If any such action is brought against any indemnified party and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party; and after notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party will not be liable to such indemnified party for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation.

          8.       RESTRICTIONS ON TRANSFER.  This Warrant Certificate and the Warrant may not be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the Warrant or the underlying securities by any person for a period of one hundred eighty (180) days following the Effective Date or commencement of sales of the public offering, except by operation of law or to an individual who is an officer or partner of the underwriters of the Offering and members of the selling group or commencement of sales of the public offering but only if all securities so transferred remain subject to the lock-up restriction for the remainder of the 180 day time period. The Warrant may be divided or combined, upon request to the Company by the Warrantholder,
into a certificate or certificates evidencing the same aggregate number of Warrants.

          9.       NO RIGHTS AS A SHAREHOLDER.  Except as otherwise provided herein, the Warrantholder will not, by virtue of ownership of the Warrant, be entitled to any rights of a shareholder of the Company but will, upon written request to the Company, be entitled to receive such quarterly or annual reports as the Company distributes to its shareholders.

          10.     NOTICE.  Any notices required or permitted to be given hereunder will be in writing and may be served personally or by mail; and if served will be addressed as follows:

          If to the Company:

                    NuVim, Inc.
                     12 Route 17 North, Suite 210
                     Paramus, New Jersey  07652
                     Attention:  President

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          If to the Warrantholder:

                    AT THE ADDRESS FURNISHED
                     BY THE WARRANTHOLDER TO THE 
                     COMPANY FOR THE PURPOSE OF NOTICE.

          Any notice so given by mail will be deemed effectively given 48 hours after mailing when deposited in the United States mail, registered or certified mail, return receipt requested, postage prepaid and addressed as specified above.  Any party may by written notice to the other specify a different address for notice purposes.

          11.     APPLICABLE LAW.  This Warrant Certificate will be governed by and construed in accordance with the laws of the State of Oregon, without reference to conflict of laws principles thereunder.  All disputes relating to this Warrant Certificate shall be tried before the courts of Oregon located in Multnomah County, Oregon to the exclusion of all other courts that might have jurisdiction.

          Dated as of ____________, 2005

	
  
 
  	
  
NUVIM, INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Name:
  
	
  
 
  	
  
 
  	
  
Title:
  
	
   
  	
  
 
  	
  
 
  
	
  
          Agreed   and Accepted as of ______________, 2005
  
	
  
 
  
	
  
 
  	
  
PAULSON INVESTMENT COMPANY,   INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Name:
  
	
   
  	
   
  	
  Title:
  

8EXHIBIT 10.1

EMPLOYMENT AGREEMENT

Employment Agreement, executed this 9th day of September, 2004 between NuVim Inc., a Delaware corporation (the “Company”), and Richard Kundrat (“Employee”).

Whereas, the Company desires to enter into an employment agreement with Employee as Chairman and Chief Executive Officer for term of three years commencing upon the consummation of an initial public offering of the stock of NuVim, Inc. (an “IPO”); and

Whereas, Employee is willing to accept such employment on the terms set forth herein.

Now, therefore, the Company and Employee hereby agree as follows:

1.          Employment.

1.1        General.  The Company hereby agrees to employ Employee in the capacity of Chairman and Chief Executive Officer and Employee hereby accepts such employment, upon the terms and subject to the conditions herein contained and as specified in the IPO.

1.2        Duties and Authority.  During the term of Employee’s employment hereunder, Employee shall direct business of the Company and have such responsibilities, duties and authority as may, from time to time, be assigned to Employee by the Company’s Board of Directors (the “Board”).  During the term of the Agreement, Employee shall serve the Company, faithfully and to the best of the Employee’s ability, and shall devote substantially all of the Employee’s business time and efforts to the business and affairs of the Company (including its subsidiaries and affiliates) and the promotion of its interests.  Employee shall be available to the Company at such times and places as the Company shall reasonably request during the term hereof.  If Employee wishes to serve as a Director of any company other than Company, Employee shall first obtain approval from the Company’s
Board of Director, which approval shall not be unreasonably withheld.

2.          Term of Employment.  The term of this Agreement shall commence on the consummation date of the IPO and shall continue for three years therefrom. Thereafter, the term of this Agreement shall be automatically extended for successive and additional one-year periods, unless Employee or the Company shall provide a written notice of termination at least one hundred eighty (180) days prior to the end of the initial term or any extended term.  The term of this Agreement is subject to early termination in accordance with the provisions set forth herein.  The election of the Company or Employee to terminate this Agreement as of the expiration of the initial term, or as of the end of any one-year renewal period, as provided in this Section 2 shall not be deemed to be termination by the Company hereof or by Employee without Cause (as defined below), and in such event Employee shall only be
entitled to the compensation set forth hereafter.

3.          Compensation and Benefits

3.1        Salary.  The Company shall pay to Employee a base salary at the annual rate of $225,000.00 or at such increased rate as the Board, in its sole discretion, may hereafter from time to time determine (“Base Salary”), payable in accordance with the regular payroll practices of the Company.

3.2        Expenses.  Employee shall be entitled to receive proper reimbursement from the Company for all reasonable out-of-pocket expenses incurred by Employee in performing services under this Agreement, according to the Company’s expense account and reimbursement policies and provided that Employee shall submit reasonable documentation with respect to such expenses.  Company will reimburse Employee for financial advisory services up to a maximum of $5,000.00 per year or such other number as is authorized in the IPO or the board of directors.  

3.3        Bonus and SOP.  During the term of this Agreement, Employee shall be entitled to participate in the Company’s Employee Stock Option Plans (to the extend the same is provided for after the issuance of the IPO), and Employee shall be entitled to receive a cash bonus payment (“Bonus”) not to exceed a maximum of 100% of Employee’s Base Salary unless otherwise approved by the board of directors.  The employee, in his/her sole discretion, may elect to receive stock options or warrants instead of cash, provided the value of said options or warrants does not exceed the value of the cash bonus. Such bonus and option grants shall be related to the achievement of the Company’s revenues and profits goals and shall be approved by the Board.  Any Bonus payable hereunder shall be paid within 60 days following the completion of the bonus period.  Bonus guidelines shall be established
by the company at or after the issuance of the IPO. 

3.4        No Other Benefits.  During the term of this Agreement or upon any termination hereof, the Company shall have no obligation to pay or provide, any compensation or benefits other than as set forth herein, provided, however, that Employee shall be entitled to all benefits generally available under the employee benefit plans, and the policies and practices, of the Company, determined in accordance with the applicable terms and provisions of such plans, policies and practices, in each case, as accrued to the date of termination of employment.

4.0        Termination of Employment.

4.1        Events of Termination.  Employee’s employment hereunder shall terminate prior to the expiration of the terms set forth in Section 2 hereof upon the occurrence of any one or more of the following events:

4.1.1     Death by employee or complete bankruptcy of the company. 

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4.1.2     Termination by the Company for Cause.  The Company may, as its option, terminate the Employee’s employment for Cause (as defined herein) upon giving notice of termination to Employee.  Employee’s employment shall terminate on the date on which such notice shall be given.  For purposes hereof, “Cause” shall mean Employee’s (i) conviction of, guilty plea to or confession of guilt of a felony, (ii) commission of fraudulent, illegal or dishonest acts, (iii) willful misconduct or gross negligence which reasonably could be expected to be materially injurious to the business, operations or reputation of the Company (monetarily or otherwise), (iv) failure to perform Employee’s duties as assigned to Employee from time to time or (v) other material breach of this agreement.

4.1.3     Termination By Employee.  Employee may terminate Employee’s employment for any reason whatsoever by giving one hundred eighty (180) days prior notice of termination to the Company.

4.1.4     Disability.  In the event of Employee’s Disability (as defined below), the Company will have the option to terminate Employee’s employment by giving a written notice of termination to Employee.  Such notice shall specify the date of termination, which date shall not be earlier than sixty (60) days after such notice is given.  For purposes of the Agreement, “Disability” means the inability of Employee to substantially perform Employee’s duties hereunder for 90 days out of 180 consecutive days as a result of a  physical or mental illness, all as determined in good faith by the Board. 

4.2        Company’s Obligation Upon Termination Without Cause.  In the event that Employee’s employment shall be terminated, the Company shall pay Employee (a) all Base Salary earned but unpaid through the date of termination, (b) any Bonus earned on or prior to the date of termination, but not yet paid, and (c) Base Salary for a period of one year from the date of termination in accordance with the Company’s regular payroll practices then in effect and Bonus equivalent to the Bonus received by Employee in the most recent year.  In addition, the Company shall reimburse Employee for any expenses incurred through the date of such termination in accordance with Section 3.2 hereof.

4.2.1     Termination by Employee by the Company for Cause.  In the event that Employee’s employment shall be terminated by Employee pursuant to Section 4.1.2 hereof (or if Employee voluntarily resigns otherwise than in accordance with such Section prior to the expiration  of the then current term of this Agreement), Employee shall be entitled to no further compensation or other benefits under this Agreement other than any Base Salary and any Bonus earned on or prior to the date of such termination, but not yet paid.  In addition, the Company shall reimburse Employee for any expenses incurred through the date of such termination in accordance with Section 3.2 hereof.

4.2.2     Termination upon Expiration of the Employee Term.   Upon expiration of the term of this Agreement, Employee shall be entitled to no further compensation or other benefits under this Agreement other than Base Salary earned, but unpaid, through the date of termination and Bonus earned on or prior to the end of such term, but not yet paid.  In addition, the Company shall reimburse Employee for any expenses incurred through the date of such termination in accordance with Section 3.2 hereof.

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4.2.3     Termination Due to Death or Disability.  In the event that Employee’s employment shall be terminated by the Company pursuant to Section 4.1.1 or 4.1.4 hereof, the Company shall pay Employee (a) all Base Salary earned but unpaid through the date of termination, and (b) any Bonus earned on or prior to the date of termination, but not yet paid.  In addition, the Company shall reimburse Employee for any expenses incurred through the date of termination in accordance with Section 3.2 hereof.

4.3        Nature of  Payments.  All amounts to be paid by the Company to Employee pursuant to this Section 4 (other than Base Salary or reimbursement of expenses or amounts paid) shall be considered by the parties to be severance payments.  In the event that such payments shall be treated as damages, it is expressly acknowledged by the parties that damages to Employee for termination of employment would be difficult to ascertain and the above amounts are reasonable estimates thereof and are not a penalty.

5.          Non-Solicitation; Noncompetition.  During the term of this Agreement, and for a period of six (6) months thereafter (following termination for any reason), Employee shall not:

(a) induce or attempt to induce, directly or indirectly, any then current customer or client of the Company to cease doing business, in whole or in part, with the Company or solicit or divert, directly or indirectly, the business of any such customer or client, or any identified potential customer or client, for Employee’s own account or for the account of any other person or entity;

(b) solicit or induce, directly or indirectly, any person or entity, including any third-party service  provider, distributor or supplier of the Company, to terminate its relationship with the Company or otherwise interfere with such relationship;

(c) for Employee’s own account or for the account of any other person or entity, solicit, interfere with or endeavor to cause, directly or indirectly, any employee or agent of the Company or induce or attempt to induce, directly or indirectly, any employee or agent of the  Company to leave employment or terminate its agency with the Company or induce attempt to its agency with the Company or induce or attempt to induce, directly or indirectly, any such employee or agent to breach an employment or agency agreement or arrangement with the Company; or

(d) either for Employee or on behalf of any person or entity, directly or indirectly own, control or participate in the ownership or control of, or be employed by or on behalf of, any business which is directly competitive with the business of the Company, within the United States of America or any country in which the Company then conducts or proposes to conduct business, without the express written consent of the Company.

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6.          Property Rights.  With respect to information, inventions and discoveries developed, made or conceived of by Employee, either along or with others, at any time during Employee’s employment by the Company and whether or not within working hours, arising out of such employment or pertinent to any field of business or research in which, during such employment, the Company is engaged or (if such is known to or ascertainable by Employee) is considered engaging, Employee agrees:

(a) that all such information, inventions and discoveries, whether or not patented or patentable, shall be and remain the exclusive property of the Company.

(b) to disclose promptly to an authorized representative of the Company all such information in  Employee’s possession as to possible application and uses thereof;

(c) not to file any patent application relating to any such invention or discovery except with the prior written consent or an authorized officer of the Company;

(d) that Employee hereby waives and releases any and all rights Employee may have in and to such information, inventions and discoveries’ and hereby assigns to the Company and/or its nominees all of Employee’s right, title and interest in them, and all Employee’s right, title and interest in any patent, patent application, copyright or other property right based thereon.  Employee hereby irrevocably designates and appoints the Company and each of its duly authorized officers and agents as Employee’s agent and attorney-in-fact to act for Employee and in Employee’s behalf and stead to execute and file Any document and to do all other lawfully permitted acts to further the prosecution, issuance and enforcement of any such patent, patent application, copyright or other property right with the same force and effect as if executed and delivered by Employee; and

(e) at the request of the Company and without expense to Employee, to execute such documents and perform such other acts as the Company deems necessary or appropriate for  the Company to obtain patents on such inventions in a jurisdiction or jurisdictions designated by the Company, and to assign to the Company or its designee such inventions and any patent applications and patents relating thereto.

7.          Confidentiality.  With respect to the information, inventions and discoveries referred to in Section 6 hereof, and also with respect to all other information, whatever its nature and form and whether obtained orally, by observation, from graphic materials or otherwise (except such as is generally available through publication), obtained by Employee during or as a result of Employee’s employment by the Company and relating to any invention, improvement, enhancement, product, know-how, formula, software, process, apparatus, design, concept or other creation, or to any use of any of them, or to materials, tolerances, specifications, costs, (including, without limitation, manufacturing costs), prices, or to any plans of the Company, or to any other trade secret or proprietary information of the company, Employee agrees:

(a) to hold all such information, inventions and discoveries in strict confidence and not to publish or otherwise disclose any thereof to any person or entity other than the Company, except with the prior written consent of an authorized officer of the Company;

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(b) to take all reasonable precautions to assurance that all such information, inventions and discoveries are properly protected from access by unauthorized persons;

(c) to make no use of nor exploit in any way any such information, invention or discovery except as required in the performance of Employee’s employment duties for the Company; and

(d) upon termination of Employee’s employment  by the Company, or at any time upon request of the Company, to deliver to it all graphic materials and all substances, models, software, prototypes and the like containing or relating to any such information, invention or discovery, all of which graphic materials and other things shall be and remain the exclusive property of the Company.

For purposes of this Agreement, the term “graphic materials” includes, without limitation, letters, memoranda, reports, notes, notebooks, books of account, prints, specifications, formulae software, data print-outs, microfilms, magnetic tapes and disks and other documents and recordings, together with all copies, excerpts and summaries thereof.

8.          Post-Termination Period.  Any discovery relating to the business of the Company made by Employee within one year after the termination of Employee’s employment with the Company for any reason shall be deemed to have been made or conceived during Employee’s employment by the Company.

9.          No Conflicts.  Employee agrees and acknowledges that Employee’s employment by the Company and compliance with this Agreement do not and will not breach any agreement made by Employee to keep in confidence information acquired by Employee prior to or outside of Employee’s employment with the Company.  Employee will comply with any and all valid obligations which Employee may now have to prior employers or to others relating to confidential information, inventions or discoveries which are the property of those prior employers or others, as the case may be.  Employee has supplied or shall promptly supply to the Company upon its request a copy of each written agreement setting forth any such obligation, Employee hereby agrees and acknowledges that Employee has not brought and will not bring with Employee for use in the performance of duties at the Company any materials,
documents or information of a former employer or any third party that are not generally available to the public, unless Employee has express written authorization from the owner thereof for possession and use or Employee otherwise has undisputed proprietary rights to such material documents or information.

10.        Specific Performance.  Without intending to limit the remedies available to the Company, Employee agrees that damages at law would be an inadequate remedy to the Company in the event that Employee shall breach or attempt to breach any of the provisions of Sections 5, 6, 7, 8, or 9 hereof and that the Company may apply for and, without the posting of any bond or other security, have injunctive relief in any court of

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competent jurisdiction to restrain the breach or threatened breach of, or otherwise to enforce specifically, any of the covenants contained in such Sections.  Such injunctive relief in such court shall be available to the Company in lieu of any arbitration proceeding pursuant to Section 12 hereof.

11.        Survival.  The provisions of Sections 4, 5, 6, 7, 8, 10, 12, 13.1 and 13.4 shall survive any termination of this Agreement.  In furtherance and not in limitation of the preceding sentence, Employee’s obligations under Sections 5, 6 and 7 hereof shall remain in effect throughout Employee’s employment by the Company and ever thereafter, unaffected by any transfer to a subsidiary or affiliate of the Company and without regard to the reason for termination of Employee’s employment.

12.        Arbitration.  Any controversy or claim based on, arising out of or relating to the interpretation and performance of this Agreement or any termination hereof shall be solely and finally settled by arbitration under the rules of the American Arbitration Association, and judgment on the award rendered in the arbitration may be entered in any court having jurisdiction thereof.  Any such arbitration shall be in New York, NY, and shall be submitted to a single arbitrator appointed by the mutual consent of the parties or, in the absence of such consent, by application of any party to the American Arbitration Association.  A decision of the arbitrator shall be final end binding upon the parties, and the arbitrator shall be authorized to apportion fees and expenses (including counsel fees and expenses) as the arbitrator shall doom appropriate.  In the absence of any such apportionment, the fees
and expenses of the arbitrator shall be borne equally by each party, and each party will bear the fee and expenses of its own attorney.  The parties agree that this clause has been included to rapidly and inexpensively resolve any disputes between them with respect to this Agreement and that this clause shall be grounds for dismissal of any court action commenced by either party with respect to this Agreement, other than (i) post-arbitration actions seeking to enforce an arbitration award and (ii) actions seeking appropriate equitable or injunctive relief pursuant to Section 10 hereof.

13.        Miscellaneous.

13.1      Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.

13.2      Entire Agreement; Amendment.  This Agreement and the Shareholder and Equity Agreement between the Company and employee contain the compete understanding and agreement between the parties hereto with respect to the subject matter hereof, and supersedes all  prior understandings and agreements, written or oral, between the parties hereto relating to the subject matter hereof.  This Agreement may not be amended or modified except in a writing signed by the parties hereto.

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13.3      Assignment.  This Agreement, and the rights and obligations hereunder, shall not be assigned or delegated by any party hereto without the prior written consent to the other party, except (a) with respect to an assignment by the Company, to any affiliate of the Company or (b) pursuant to a merger or consolidation involving the Company or pursuant to the sale of all or substantially all of the assets of the Company.

13.4      Severability.  In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, (i) the remaining provision of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law and (ii) any such invalidity or unenforceability shall be deemed replaced by a term or provision determined by the parties as coming closest to expressing the intention of the invalid or unenforceable term or provision.

13.5      Notice.  Any notice to be given hereunder shall be in writing and either delivered in person, by nationally recognized overnight courier, by facsimile or by registered or certified first class mail, postage prepaid with return receipt requested, addressed (a) if to the Company at 12 Route 17 North-Suite 210, Parumus, NJ 07652 with a further copy to Michael H. Maizes, Esq., Maizes & Maizes, LLP, 2027 Williamsbridge Road, Bronx, NY 10461-1630 and (b) if to Richard P. Kundrat, at Kundrat Associates, Inc., 39 Flaming Arrow Road, Mahwah, NJ 07430.  Notices delivered personally shall be deemed given as of actual receipt: notices sent via facsimile transmission shall be deemed given as one business day following sender’s receipt from sender’s facsimile machine or written confirmation of transmission thereof: notices sent by overnight courier shall be deemed given as of the one business day following sending;
and notices mailed shall be deemed given as of five business days after proper mailing.  Any party may change its address in a notice given to the other party in accordance with this Section 13.5

13.6      Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors (including without limitation, any successor by merger or sale of all or substantially all assets) and permitted assigns.

13.7      Further Assurance.  Employee shall execute and deliver all instruments and other documents which, in the opinion of the Company, may be necessary or appropriate to carry out the terms of this Agreement.

13.8      Headings.  The Section headings in this Agreement are for convenience of reference only and shall not affect its interpretation.

13.9      Interpretation.  For purposes of Sections 5, 6, 7, 8 and 9 the “Company” shall include any subsidiary or affiliate of the Company for which Employee renders services (even if Employee’s entire compensation shall have been paid by NuVim, Inc.). 

13.10    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same agreement.

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IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the date first above written.

NUVIM INCORPORATED

	
  
 
  	
  
 
  	
  
 
  
	
  By:
  	
  
/s/ RICHARD KUNDRAT
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
  
 
  	
  
Name Richard Kundrat
  	
  
 
  
	
  
 
  	
  
Title President
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
/s/ RICHARD KUNDRAT
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
   
  	
  Richard Kundrat
  	
   
  

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