Document:

lncm_10k-ex1018.htm

Exhibit 10.18

 

 

February 27, 2012

Tom Banks

14 Stuyvesant Oval, Apt. 9D

New York, NY 10009

 

Re:  Separation Agreement; Waiver and Release

 

Dear Tom:

 

This letter (“Separation Agreement”) confirms the agreement between you and iLoop Mobile (“the Company”) concerning your separation from the Company and offers you a settlement payment in exchange for a waiver and release of claims.

 

1.                Separation from the Company:  Your last date of employment with the Company shall be February 29, 2012 (the “Separation Date”).

 

2.                Separation Pay:  In exchange for your agreement to the waiver of claims set forth in paragraph 6, below, and for your continued support of the Company as a consultant as set forth below, you and the Company agree as follows:

 

	
  

	
a.

	
Consulting Period (March 1, 2012 to June 30, 2012):

 

	
  

	
(i)

	
Support of Audit:  For the first two (2) months of the Consulting Period (March and April 2012, the “Audit Period”) you agree to support the Company’s CFO and auditor as reasonably requested to assist the Company’s pending audit. During the Audit Period, you will receive $15,000 per month, payable on the 15th of each calendar month (or at the same time as the Company’s regular mid-month payroll).

 

	
  

	
(ii)

	
Support for General Questions:  For the last two (2) months of the Consulting Period (May and June 2012), you agree to be available to answer occasional questions from the Company CFO as reasonably requested.  During this period, you will receive pay of $12,500 per month, payable on the same monthly schedule as set forth above.

 

	
  

	
(iii)

	
Benefits:  During the Consulting Period, the Company will also: (1) continue to provide and pay for your health and dental benefits commensurate with the Company’s then-current benefit plan through the Consulting Period or until you secure comparable benefits from a new employer; and (2) reimburse you for your cell phone bill, parking and other reasonable approved expenses incurred in performing your obligations under this Agreement.

 

  

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(iv)

	
Your work and travel schedule during the Consulting Period will be at your discretion, provided that you remain cooperative and responsive to reasonable requests from the CFO and/or the auditor, and with the understanding that you are entitled to a reasonable amount of personal time for vacation and job search activities.

 

	
  

	
(v)

	
In the event that you fail to cooperate and/or promptly respond to reasonable requests from the auditor during the Audit Period set forth above, and you do not cure within 5 business days of such breach, in addition to other remedies set forth herein, the Company may terminate this Agreement including all obligations to pay consulting and severance payments.

 

	
  

	
b.

	
Additional Severance Payments (July 1, 2012 – December 31, 2012):

 

	
  

	
(i)

	
Upon completion of the Consulting period, you will continue to receive monthly severance pay of $10,000 per month, on the same monthly schedule as set forth in Section 2.a. above, through the end of the calendar year 2012.

 

	
  

	
(ii)

	
By signing below, you agree that the separation pay set forth in Sections 2.a. and 2.b. of this Agreement are not compensation due per the terms of your employment with iLoop, but are consideration for waiving your right to claims referred to in this agreement.

 

	
  

	
c.

	
Late Payments:  If Company is five days or more in making a monthly payment set forth in this Section 2, then all remaining payment due dates accelerate by one month, such that two payments are due immediately and the remaining payments are due monthly thereafter with the schedule advanced by one month. If then the next payment date is missed, the payment due dates accelerate again by one month, and so on. Interest on overdue amounts accrues at 12% from the due date of a scheduled payment at the most accelerated point in which each payment is not made. Further, the Company agrees that no payments on any employee retention bonus agreements shall be made unless payments due under this agreement are all current and paid.

 

3.                Accrued Vacation and Floating Holidays.  The Company agrees to pay you for vacation that you have accrued but not used, if any, as of the Separation Date.

 

4.                Return of Company Property:  You hereby warrant to the Company that you will, by the Separation Date or the end of the Consulting Period, as reasonably determined by the Company, return to the Company all property or data of the Company of any type whatsoever that has been in your possession or control.

 

  

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5.                Waiver and Release of Claims:  The payments and promises set forth in this agreement are in full satisfaction of all accrued salary, vacation pay, bonus pay, profit-sharing, commissions, reimbursable expenses or other compensation to which you may be entitled by virtue of your employment with the Company or your separation from the Company.  You hereby release and waive any other claims you may have against the Company and its owners, agents, officers, shareholders, employees, directors, attorneys, subscribers, subsidiaries, affiliates, successors and assigns (collectively "Releasees"), whether known or not known, including, without limitation, claims under any employment laws, including, but not limited to, claims of unlawful discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation, physical injury, emotional distress, claims for additional compensation or benefits arising out of your employment or your separation of employment, claims under Title VII of the 1964 Civil Rights Act, as amended, the California Fair Employment and Housing Act and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims based on age or under the Age Discrimination in Employment Act or Older Workers Benefit Protection Act.  By signing below, you expressly waive any benefits of Section 1542 of the Civil Code of the State of California, which provides as follows:

 

"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."

 

Notwithstanding the foregoing, this waiver and release of claims does not extend to any rights which as a matter of law cannot be waived and released.

 

6.                Legal and Equitable Remedies:  You agree that Releasees have the right to enforce this agreement and any of its provisions by injunction, specific performance or other equitable relief without prejudice to any other rights or remedies Releasees may have at law or in equity for breach of this agreement.

 

7.                Attorneys' Fees:  If any action is brought to enforce the terms of this agreement, the prevailing party will be entitled to recover its reasonable attorneys' fees, costs and expenses from the other party, in addition to any other relief to which the prevailing party may be entitled.

 

  

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8.                Confidentiality:  You hereby acknowledge that you are bound by the confidentiality provisions of your employment agreement with the Company, and that as a result of your employment with the Company you have had access to the Company's confidential or proprietary information and trade secrets concerning the Company's operations, its future plans and its methods of doing business, including by way of example, but by no means limited to, information about the Company’s customers, product development, research, technology, financial, marketing, pricing, cost, compensation and other matters (collectively “Confidential Information”).  You understand and agree that unauthorized disclosure of any Confidential Information could be extremely damaging to the Company, and that you will not make use of such Confidential Information on your own behalf, or on behalf of any competitor or any other business or person.  Further, the contents, terms and conditions of this agreement shall be kept confidential by you and may not be disclosed except as necessary to carry out this agreement and to your accountant or attorney or pursuant to subpoena or court order.  You agree that if asked for information concerning this settlement, you will state only that you and the Company reached an amicable resolution of any disputes concerning your separation from the Company.  The undertakings set forth in this paragraph shall survive the termination of other arrangements contained in this agreement.

 

9.                Non-Solicitation / Non-Disparagement.  You and the Company agree not to engage in conduct or undertake speech disparaging, derogatory or otherwise detrimental each other.  You further agree that you will not solicit or participate in or assist in any way, the solicitation of any other employees or customers of the Company or of any of its parent or subsidiary companies.

 

10.                Required Reporting.  Following your separation from the Company, you will be formally removed as CFO and Secretary of Lenco Mobile Inc. and all affiliated entities. The Company will prepare and file an 8-K disclosure as required by applicable securities laws.  You will have an opportunity to review, but no authority to approve, that communication before it is released.

 

11.                No Admission of Liability:  This agreement is not and shall not be construed or contended by you to be an admission or evidence of any wrongdoing or liability on the part of Releasees, their representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates, divisions, successors or assigns.  This agreement shall be afforded the maximum protection allowable under California Evidence Code Section 1152 and/or any other state or Federal provisions of similar effect.

 

12.                Review and Revocation.  You acknowledge that:

 

a.           Pursuant to applicable law, you have been offered the opportunity to review a copy of this Separation Agreement for a period of twenty-one (21) days (the “Review Period”);

 

b.           The Company advised you at the beginning of the Review Period to consult with an attorney concerning the terms and conditions of this Separation Agreement, including without limitation the release set forth in this Separation Agreement; and

 

  

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c.           The terms and conditions of this Separation Agreement have not been amended, modified, or revoked during the Review Period.  You and the Company agree that you shall have seven (7) calendar days (the “Revocation Period”) following the date on which you sign this Separation Agreement to revoke your acceptance of the Separation Agreement and the release set forth in this Separation Agreement, and this Separation Agreement shall not become effective until the Revocation Period has expired.

 

13.                Entire Agreement:  This Separation Agreement constitutes the entire agreement between you and Releasees with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter other than the confidentiality agreement referred to in paragraph 8, above.  You acknowledge that neither Releasees nor their agents or attorneys have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this agreement for the purpose of inducing you to execute the agreement, and you acknowledge that you have executed this agreement in reliance only upon such promises, representations and warranties as are contained herein.

 

14.                Modification:  It is expressly agreed that this agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written agreement that specifically refers to this agreement, executed by authorized representatives of each of the parties to this agreement.

 

If you agree to abide by the terms outlined in this letter, please sign this letter and also sign the attached copy and return it to us by the end of the Review Period.  We wish you the best in your future endeavors.

 

Sincerely,

 

 

 

Matthew Harris

 

Chief Executive Officer

 

 

	
READ, UNDERSTOOD AND AGREED

	  
	  	  
	
_____________________

	
________________

	
Signature

	
Date

	
Thomas Banks

	  

Printed Name

 

 

 

Page 5lncm_10k-ex1021.htm

Exhibit 10.21

 

 

Lenco Mobile Inc.

 

100 South King Street

Seattle WA 98104

 

February 21, 2012

 

Chris Dukelow

 

16254 205th Place SE Renton WA 98059

 

Dear Chris,

 

On behalf of Lenco Mobile Inc., I am pleased to offer you employment as Chief Financial Officer, on the following terms:

 

	
Title:

	
Chief Financial Officer

	
Start Date:

	
Immediate

	
Reporting to:

	
Chief Executive Officer

	
Duties:

	
Those responsibilities normally attendant to the position of Chief Financial Officer.

	
Base Salary:

	
$200,000 annually

	
Target Bonus:

	
You will be eligible for an annual bonus under the terms of the company’s bonus plan as modified from time to time. Your target annualized bonus for 2012 will be $75,000 (as adjusted for time in service in 2012). I will review the Lenco bonus plan with you at a time convenient for you.

	
Benefits:

	
You will be eligible for employee benefits under the benefit plan offered to employees of Lenco.

	
Expenses:

	
You will be reimbursed for all reasonable employment-related expenses incurred by you in accordance with Lenco's expense reimbursement policies as modified from time to time.

	
Equity Compensation:

	
As an employee of Lenco, you will be eligible to receive stock option grants under the Lenco Equity Compensation Plan, in amounts determined by the Compensation Committee of the Board of Directors. Subject to approval by the Compensation Committee, your initial stock option grant will be 0.75% of the fully diluted shares outstanding of Lenco, measured as of the date of the grant.

 

Lenco is an at will employer. Your employment is voluntary and is for no specific time period. You may resign or Lenco may terminate your employment at any time, for any reason, with or without notice.

 

 

  

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Lenco is hiring you with the understanding that your entire business time, attention, energies, skills, learning and best efforts shall be devoted to Lenco's business, except as agreed in advance in writing by the Lenco Chief Executive Officer. During the term of your employment, you may not directly or indirectly carry on any business activities that compete with Lenco.

 

Lenco values its intellectual property rights and respects the rights of third parties. By signing this letter, you agree to abide be the terms of the Employee Proprietary Information and Inventions Agreement attached to this letter and incorporated herein by reference. You also represent that your employment with Lenco, and the performance of your anticipated duties with Lenco, will not violate any agreement with or duty to any previous employer or third party that (i) obligates you to keep in confidence proprietary information acquired by you prior to your employment by Lenco, (ii) obligates you to assign to or protect for the benefit of any third party any proprietary information or any improvement, invention, formulae, process, program, technique, know-how or data, or (iii) is designed in any way to limit your employment or activity in any business in which you may compete, directly or indirectly, with any other business, or which might by application have such an effect.

 

If the terms outlined above and in the attached Employee Proprietary Information and Inventions Agreement are acceptable to you, please sign below and return the original to me. This letter sets forth the terms or your employment with Lenco and supersedes any prior agreements, whether written or oral, regarding your employment. This letter may not be modified or amended except in writing, signed by Lenco and you.

 

I believe this an excellent opportunity for you, Chris, and that you will be a terrific addition to our business. And I believe quite strongly that, in the end, the quality of our team will be the single most important factor in determining our success. Hence, my strong interest in bringing you on board. I am confident that you’ll not only be an outstanding individual contributor but also an important factor in fostering a cohesive and highly productive team. For all those reasons – and more – I’m excited to welcome you to Lenco.

 

 

	 	Sincerely, 
 

 

/s/ Matthew Harris

Matthew Harris

Chief Executive Officer

 

With my signature below, I accept this offer of employment

 

 

	
Signature:

 

Printed name:  Chris Dukelow

	Date:

 

 

  

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EMPLOYEE PROPRIETARY INFORMATION AND

INVENTIONS AGREEMENT

 

In consideration of my employment by Lenco Mobile Inc. and the compensation I will receive from Lenco, I agree to certain restrictions placed on my use of information belonging to Lenco, as set for the below, and to the specified treatment of certain intellectual property rights, also set forth below.

 

Definitions

 

“Company Materials” means documents or other media or tangible items that contain or embody Proprietary Information or any other information concerning the business, operations or plans of Lenco, whether such documents, media or items have been prepared by me or by others. Company Materials include, but are not limited to, blueprints, drawings, photographs, charts, graphs, notebooks, customer lists, computer disks, tapes or printouts, sound recordings and other printed, typewritten or handwritten documents, sample products, prototypes and models.

 

“Inventions” mean any work of authorship, discovery, improvement, invention, design, graphic, source, HTML and other code, trade secret, technology, algorithms, computer program or software, audio, video or other files or content, idea, design, process, technique, formula or composition, know-how and data, whether or not patentable or copyrightable.

 

“Lenco” refers to Lenco Mobile Inc. and each of its parent corporations, subsidiaries or affiliated companies.

 

“Proprietary Information” is information that was or will be developed, created, or discovered by or on behalf of Lenco, or which became or will become known by, or was or is conveyed by a third party to Lenco, which has commercial value in Lenco’s business or the business of a third party disclosing such information. Proprietary Information includes, but is not limited to, the following (whether or not patentable, copyrightable, or registrable under any intellectual property laws or industrial property laws in the United States or elsewhere): information about software programs and subroutines, source and object code, databases, database criteria, user profiles, scripts, algorithms, processes, trade secrets, designs, methodologies, technology, know-how, processes, data, ideas, techniques, inventions, modules, features and modes of operation, internal documentation, works of authorship, technical, business, financial, client, marketing, and product development plans, forecasts, other employees’ positions, skill levels, duties, compensation and all other terms of their employment (unless disclosure is permitted by law), client and supplier lists, contacts at or knowledge of clients or prospective clients of Lenco, and other information concerning Lenco’s or its clients’ actual or anticipated products or services, business, research or development, or any information which is received in confidence by or for Lenco from any other person unless (i) the information is or becomes publicly known through lawful means; (ii) the information was rightfully in my possession or part of my general knowledge prior to my employment by Lenco as specifically identified and disclosed by me in Exhibit A; or (iii) the information is disclosed to me without confidential or proprietary restriction by a third party who rightfully possesses the information (without confidential or proprietary restriction). I understand that my employment creates a relationship of confidence and trust between me and Lenco with respect to Proprietary Information.

 

"Rights" means Proprietary Information and all title, patents, patent rights, copyrights, trade secret rights, trademarks, trademark rights, and other intellectual property and rights anywhere in the world.

 

 

  

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Obligations to Protect Proprietary Information

 

General. At all times, both during my employment by Lenco and after its termination, I will (a) keep in confidence and trust and will not disclose any Proprietary Information except to other Lenco employees, agents and representatives who need to know, or to third parties who are bound by written confidentiality agreements to the extent necessary to carry out my responsibilities as an employee of Lenco and in a manner consistent with any such third party confidentiality agreements, and (b) use Proprietary Information only for the benefit of Lenco.

 

Maintenance and Return of Company Materials. All Company Materials are and shall be the sole property of Lenco. I agree that during my employment by Lenco, I will not remove any Company Materials from the business premises of Lenco or deliver any Company Materials to any person or entity outside Lenco, except as I am required to do in connection with performing the duties of my employment. I further agree that, immediately upon the termination of my employment by me or by Lenco for any reason, or during my employment if so requested by Lenco, I will return all Company Materials, apparatus, equipment and other physical property, or any reproduction of such property, excepting only (i) my personal copies of records relating to my compensation; (ii) my personal copies of any materials previously distributed generally to stockholders of Lenco; and (iii) my copy of this Agreement.

 

Disclosure of inventions to Lenco. I agree to maintain adequate and current written records and promptly disclose in writing to my immediate supervisor or as otherwise designated by Lenco, all Inventions, made, discovered, conceived, reduced to practice or developed by me, either alone or jointly with others, during the term of my employment.

 

Ownership of Inventions

 

General. Lenco shall be the sole owner of all Rights, title and interest in the Proprietary Information, Company Materials and Inventions.

 

Existing Inventions. I have attached hereto a complete list of all existing Inventions to which I claim ownership as Exhibit A to this Agreement and that I desire to specifically clarify are not subject to this Agreement, and I acknowledge and agree that such list is complete. If no such list is attached to this Agreement, I represent that I have no such Inventions at the time of signing this Agreement.

 

Assignment of Rights. I hereby assign to Lenco any Rights I may have or acquire in Proprietary Information during the term of my employment. I agree that all Inventions which I make, discover, conceive, reduce to practice or develop (in whole or in part, either alone or jointly with others) during my employment shall be the sole property of Lenco to the maximum extent permitted law and I hereby assign such Inventions and all Rights therein to Lenco. Lenco shall be the sole owner of all Rights in connection therewith.

 

Works made for Hire. I further acknowledge and agree that such Inventions, including, without limitation, any computer programs, programming documentation, and other works of authorship, are “works made for hire” for purposes of Lenco rights under copyright laws. To the extent that any Inventions may not be considered a “work made for hire”, I hereby assign to Lenco such Inventions and all Rights therein.

 

Moral Rights. Any assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights” (collectively “Moral Rights”). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby waive such Moral Rights and consent to any action of Lenco that would violate such Moral Rights in the absence of such consent.

 

 

  

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Cooperation. I agree to perform, during and after my employment, all acts deemed necessary or desirable by Lenco to permit and assist it in further evidencing and perfecting the assignments made to Lenco under this Agreement and in obtaining, maintaining, defending and enforcing Rights in connection with such Inventions and improvements thereto in any and all countries. Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings. I hereby irrevocably designate and appoint Lenco and its duly authorized officers and agents, as my agents and attorney-in-fact to act for and on my behalf and instead of me, to execute and file any documents, applications or related findings and to do all other lawfully permitted acts to further the purposes set forth above, including, without limitation, the perfection of assignment and the prosecution and issuance of patents, patent applications, copyright applications and registrations, trademark applications and registrations or other rights in connection with such Inventions and improvements thereto with the same legal force and effect as if executed by me.

 

Remedies

 

I recognize that nothing in this Agreement is intended to limit any remedy of Lenco under the Uniform Trade Secrets Act. I recognize that my violation of this Agreement could cause Lenco irreparable harm, the amount of which may be extremely difficult to estimate, making any remedy at law or in damages inadequate. Lenco shall have the right to apply to any court of competent jurisdiction for an order restraining any breach or threatened breach of this Agreement and for any other relief Lenco deems appropriate. This right shall be in addition to any other remedy available to Lenco.

 

Severability

 

If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provisions shall be modified to the minimum extent necessary to comply with applicable law and the intent of the parties. If any provision of this Agreement, or application of it to any person, place, or circumstances, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement and such provisions as applied to other persons, places, and circumstances shall remain in full force and effect.

 

Governing Law

 

Although I may work for Lenco outside of Washington or the United States, I understand and agree that this Agreement shall be interpreted and enforced in accordance with the laws of the State of Washington without regard to the conflict of laws provisions thereof. I hereby submit to the exclusive jurisdiction and venue of the state and federal courts located in Washington.

 

Authorization to Notify New Employer

 

I hereby authorize Lenco to notify my new employer about my rights and obligations under this Agreement following the termination of my employment with Lenco.

 

 

  

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EXHIBIT A

 

LIST OF EMPLOYEE INVENTIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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