Document:

Umami-EX 10.4 Employment Agreement

EMPLOYMENT AGREEMENT
 
EMPLOYMENT AGREEMENT (this “Agreement”), effective as of July 1, 2010 (“Effective Date”), between Lions Gate Lighting Corp., a Nevada corporation (the “Company”), and Dan Zang (the “Employee”).
 
WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its shareholders to employ the Employee in the position set forth below, and the Employee desires to serve in that capacity.
 
NOW, THEREFORE, in consideration of the foregoing premises, the Company and Employee hereby agree as follows:
 
1.       Employment Period. The Company shall employ the Employee, and the Employee shall serve the Company, on the terms and conditions set forth in this Agreement, for the period commencing on the date of the Shell Merger and ending three years after such date (the “Initial Term” and, together with any subsequent term of Employment, the “Employment Period”). The term of employment hereunder will automatically be renewed for successive one-year terms (each such term a “Renewal Term”) unless either party shall, at least 90 days before the last day of the Employment Period, provide written notice to the other party that the Employment Period will not be extended.
 
2.     Position, Duties and Location.
 
(a)  The Employee shall serve as Chief Financial Officer of the Company, reporting to the Board, with such duties and responsibilities as are customarily assigned to such position and such other duties and responsibilities not inconsistent therewith as may be assigned to him from time to time by the Board.
 
(b)  During the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee shall devote his full-time efforts to the business and affairs of the Company and use his best efforts to carry out such responsibilities faithfully and efficiently. It shall not be considered a violation of the foregoing for the Employee to (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures or fulfill speaking engagements, (iii) manage personal investments, or (iv) engage in other business activities, so long as such activities do not materially interfere with the performance of his responsibilities as an employee of the Company in accordance with this Agreement.

(c)  Employee will initially be based at the Company’s U.S. headquarters in or around New York, New York (the “Initial Headquarters”); provided that the Company anticipates that its headquarters may be relocated to San Diego, California at which time Employee will be expected to move to that location.
 
3.     Compensation.
 
(a)    Base Salary. During the first contract year of the Initial Term, the Employee shall receive an annual base salary (the “Annual Base Salary”) of US$179,000, which will be subject to review and change by the Board at the six month anniversary of the Effective Date.  Thereafter, Employee will receive an annual salary review by the Board, or an authorized committee thereof, on or before each anniversary of the Effective Date.  The Annual Base Salary shall be payable in accordance with the Company’s payroll practices as in effect from time to time. As part of the referenced annual salary review, the Board or an authorized committee thereof may increase the Annual Base Salary above the foregoing amounts at its discretion.  It is understood that the Annual Base Salary includes an amount of $9,000 to cover the cost of health insurance for Employee until the Company offers its employees a Company sponsored health plan at which time the Annual Base Salary will be reduced by said amount.  On the date hereof, the Employee will be granted five-year options to purchase 300,000 shares of common stock of the Company at $1.00 per share.  Of these, options to purchase 50,000 shares will vest immediately.  Options to purchase an additional 50,000 shares will vest on the first anniversary of the Effective Date.  The balance will vest in two equal installments on the second and third anniversary of the Effective Date.

 
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(b)    Bonus and Other Compensation. In addition to the Annual Base Salary, the Board (or its designated compensation committee) may award Employee an annual bonus at its discretion.  Employee will also be eligible to participate in the Company’s equity compensation plan, if and when adopted.  Awards thereunder will be made to Employee from time to time at the discretion of the Board (or relevant committee thereof).
 
(c)    Benefits. During the Employment Period, the Employee and the Employee’s direct family shall be entitled to participate in all benefit programs of the Company (if and when available), including, but not limited to, health insurance coverage, as well as all welfare benefit plans, practices, policies and programs provided by the Company, including, but not limited to any comprehensive dental plan, retirement plans and profit sharing programs the Company may provide to other employees from time to time.
 
(d)    Expenses. During the Employment Period, the Employee shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Employee in carrying out the Employee’s duties under this Agreement, provided that the Employee complies with the policies, practices and procedures of the Company for submission of expense reports, receipts and similar documentation of such expenses.

(e) Housing and Relocation Expenses.   The Company will reimburse Employee for reasonable rent paid for suitable accommodations during Employee’s work at the Initial Headquarters for a period of up to twelve (12) months.  The Company will also reimburse Employee for reasonable expenses incurred in relocating to the Initial Headquarters and any subsequent relocations at the request of the Company.  All reimbursable expenses set forth in this paragraph will be subject to the Company’s prior approval.
 
(f) Vacation. During the Employment Period, the Employee shall be entitled to a paid annual vacation of four weeks and other fringe benefits on such terms and conditions as may be determined by the Board or authorized committee thereof from time to time.
 
4.     Termination of Employment.
 
(a)           Death or Disability. The Employee’s employment shall terminate automatically upon the Employee’s death during the Employment Period. The Company shall be entitled to terminate the Employee’s employment because of the Employee’s Disability during the Employment Period. “Disability” means that (i) the Employee has been unable, for a period of two (2) consecutive months in any given twelve (12) month period, to perform the Employee’s duties under this Agreement, as a result of physical or mental illness or injury, and (ii) a physician selected by the Company or its insurers, and acceptable to the Employee or the Employee’s guardian or legal representative, has determined that the Employee’s incapacity is total and permanent. A termination of the Employee’s employment by the Company for Disability shall be communicated to the Employee by written notice, and shall be effective on the 60th day after receipt of such notice by the Employee (the “Disability Effective Date”), unless the Employee is able to, and does, return to full-time performance of the Employee’s duties before the Disability Effective Date.
 
(b)         By the Company.
 
(A)             The Company may terminate the Employee’s employment during the Employment Period for Cause or without Cause. “Cause” means:
 
(i)  Employee having, in the reasonable judgment of the Company, committed an act which if prosecuted and resulting in a conviction would constitute a fraud, embezzlement, or any felonious offense (specifically excepting simple misdemeanors not involving acts of dishonesty and all traffic violations);
 
(ii)     the Employee’s theft, embezzlement, misappropriation of or intentional and malicious infliction of damage to the Company’s property or business opportunity;
 
(iii)     the Employee’s repeated abuse of alcohol, drugs or other substances as determined by an independent medical physician; or

 
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(iv)    the Employee’s engagement in dereliction of duties, refusal to perform assigned duties consistent with his position, his knowing and willful breach of any material provision of this Agreement continuing after written notice from the Company or repeated violation of the Company’s written policies after written notice.
 
(B)      A termination of the Employee’s employment by the Company for Cause shall be effectuated by giving the Employee written notice (“Notice of Termination for Cause”) of the termination, setting forth the conduct of the Employee that constitutes Cause. Termination of employment by the Company for Cause shall be effective on the date when the Notice of Termination for Cause is given, unless the notice sets forth a later date (which date shall in no event be later than 60 days after the notice is given). Employee will be immediately advised of any allegations of conduct covered by clause (A) above and will be provided a period of fifteen (15) days from the date of the written notice to defend himself against such allegations and to take any appropriate remedial action. If Employee shows that the allegations are untrue or takes appropriate remedial action to address the allegations, the Company will not terminate the Employee’s employment for Cause.
 
(C)      A termination of the Employee’s employment by the Company without Cause shall be effected by giving the Employee written notice of the termination at least 3 months (90 days) prior to the termination date.
 
(c)         By the Employee.
 
(A)             The Employee may terminate employment with or without Good Reason. “Good Reason” means:
 
(i)  the assignment to the Employee of any duties inconsistent in any respect with paragraph (a) of Section 2 of this Agreement, other than actions that are not taken in bad faith and are remedied by the Company within thirty (30) days after receipt of notice thereof from the Employee;
 
(ii)  any failure by the Company to comply with any provision of Section 3 of this Agreement, other than failures that are not taken in bad faith and are remedied by the Company within thirty (30) days after receipt of notice thereof from the Employee;

(iii)  the occurrence of a Non-Negotiated Change in Control of the Company (as defined below); or

(iii)   the Company’s material breach of this Agreement.
 
For purposes of this Agreement, “Non-Negotiated Change in Control” means any one or more of the following occurrences:
 
(x)  Any individual, corporation (other than the Company, any trustees or other beneficiary holding securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company), partnership, trust, association, pool, syndicate, or any other entity or any group of persons acting in concert becomes the beneficial owner (within the meaning of Rule 1 3d-3 under the Securities Exchange Act of 1934) of securities of the Company possessing more than fifty percent (50%) of the voting power for the election of directors of the Company;
 
(y)  There shall be consummated any consolidation, merger, or other business combination involving the Company or the securities of the Company in which holders of voting securities of the Company immediately prior to such consummation own, as a group, immediately after such consummation, voting securities of the Company (or, if the Company does not survive such transaction, voting securities of the entity surviving such transaction) having less than fifty percent (50%) of the total voting power in an election of directors of the Company (or such other surviving corporation); or 

 
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(z) There shall be consummated any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company (on a consolidated basis) to a party which is not controlled by or under common control with the Company.

(d)          A termination of employment by the Employee for Good Reason shall be effectuated by giving the Company written notice (“Notice of Termination for Good Reason”) of the termination, setting forth the event that constitutes Good Reason. A termination of employment by the Employee for Good Reason shall be effective on the fifth business day following the date when the Notice of Termination for Good Reason is given, unless the notice sets forth a later date (which date shall in no event be later than 30 days after the notice is given).
 
(e)          A termination of the Employee’s employment by the Employee without Good Reason shall be effected by giving the Company written notice of the termination at least thirty (30) days prior to the termination date.
 
(f)          Notwithstanding anything in this Agreement to the contrary, in no event will any amount which otherwise would be payable under or pursuant to this Agreement be payable to Employee to the extent such amount, together with all other amounts payable and benefits provided to Employee under or pursuant to this Agreement and/or under any other plan(s), agreements and/or arrangement(s) arising out of Employee’s employment relationship with Company and/or any direct or indirect subsidiary of Company (including without limitation any such amounts payable by any affiliate of Company or any acquirer of any of the stock or assets of Company or any affiliate of such acquirer), if paid to Employee, would result in Employee receiving an “excess parachute payment” for purposes of Section 280G of the Internal Revenue Code of 1986, as amended. The determination of whether a payment under or pursuant to this Agreement would result in Employee receiving an excess parachute payment (but for the provisions of this Section 4) shall be made by counsel for the Company.
 
(g)           No Waiver. The failure to set forth any fact or circumstance in a Notice of Termination for Cause or a Notice of Termination for Good Reason shall not constitute a waiver of the right to assert, and shall not preclude the party giving notice from asserting, such fact or circumstance in an attempt to enforce any right under or provision of this Agreement.
 
(h)           Date of Termination. The “Date of Termination” means the date of the Employee’s death, the Disability Effective Date, the date on which the termination of the Employee’s employment by the Company for Cause or by the Employee for Good Reason is effective, or the date described in Section 4(b)(C) above in the event the Company gives the Employee notice of a termination of employment without Cause or the date described in Section 4(e) above in the event the Employee gives the Company notice of a termination of employment without Good Reason, as the case may be.
 
5.     Obligations of the Company upon Termination.
 
(a)           Termination for Reasons Other Than for Cause, Death or Disability, or Good Reason. If, during the Employment Period, the Company terminates the Employee’s employment, for any reason other than for Cause, Death or Disability, or the Employee terminates his employment for Good Reason, the Company shall (i) pay Employee’s accrued but unpaid portion of the Annual Base Salary (the “Accrued Obligations”) to the Employee in a lump sum in cash within twenty (20) days after the Date of Termination, (ii) continue to pay (in periodic intervals consistent with Company’s regular payroll practices) pay the Annual Base Salary for the remainder of the Employment Period, and (iii) if the termination takes place for Good Reason as a result of a Non-Negotiated Change in Control, the Company will pay the Employee two (2) times the Annual Base Salary in a lump sum in cash within thirty (30) days after the Date of Termination and permit all unvested options granted hereunder to be vested immediately.

 
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(b)           Termination as a Result of Employee’s Death or Disability. If the Employee’s employment is terminated by reason of the Employee’s death or Disability during the Employment Period, (i) the Company shall pay the Accrued Obligations to the Employee or the Employee’s estate or legal representative, as applicable, in a lump sum in cash within thirty (30) days after the Date of Termination, and (ii) the Company shall pay when originally due any Bonus due to the Employee, pro rated for the period until the Date of Termination, to the Employee or the Employee’s estate or legal representative.
 
(c)           Termination for Cause or Other than for Good Reason. If the Employee’s employment is terminated by the Company for Cause during the Employment Period, or if the Employee terminates his employment during the Employment Period other than for Good Reason, the Company shall pay Employee the Accrued Obligations.
 
6.     Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Employee’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies for which the Employee may qualify, nor, subject to paragraph (f) of Section 4, shall anything in this Agreement limit or otherwise affect such rights as the Employee may have under any contract or agreement with the Company or any of its affiliated companies. Vested benefits and other amounts that the Employee is otherwise entitled to receive under any plan, policy, practice or program of, or any contract or agreement with, the Company or any of its affiliated companies on or after the Date of Termination shall be payable in accordance with such plan, policy, practice, program, contract or agreement, as the case may be, except as explicitly modified by Section 4(f) of this Agreement, if applicable.
 
7.     Confidentiality; Return of Property
 
(a)       The Employee acknowledges that during the Employment Period he will receive confidential information from the Company and affiliates of the Company (each a “Relevant Entity”). Accordingly, the Employee agrees that during the Employment Period and thereafter, the Employee and his affiliates shall not, except in the performance of his obligations to the Company hereunder or as may otherwise be approved in advance by the Company, directly or indirectly, disclose or use (except for the direct benefit of the Company) any confidential information that he may learn or has learned by reason of his association with any Relevant Entity. Upon termination of this Agreement, the Employee shall promptly return to the Company any and all properties, records or papers of any Relevant Entity that may have been in his possession at the time of termination, whether prepared by the Employee or others, including, but not limited to, confidential information and keys.  For purposes of this Agreement, “confidential information” includes all data, analyses, reports, interpretations, forecasts, documents and information concerning a Relevant Entity and its affairs, including, without limitation with respect to clients, products, policies, procedures, methodologies, trade secrets and other intellectual property, systems, personnel, confidential reports, technical information, financial information, business transactions, business plans, prospects or opportunities, (i) that the Company reasonably believes are confidential or (ii) the disclosure of which could be injurious to a Relevant Entity or beneficial to competitors of a Relevant Entity, but shall exclude any information that (x) the Employee is required to disclose under any applicable laws, regulations or directives of any government agency, tribunal or authority having jurisdiction in the matter or under subpoena or other process of law, (y) is or becomes publicly available prior to the Employee’s disclosure or use of the information in a manner violative of the second sentence of this Section 7(a), or (z) is rightfully received by Employee without restriction or disclosure from a third party legally entitled to possess and to disclose such information without restriction (other than information that he may learn or has learned by reason of his association with any Relevant Entity). For purposes of this Agreement, “affiliate” means any person or entity that, directly or indirectly, is controlled by, or under common control with another person.  For purposes of this definition, the terms “controlled” and “under common control with” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting stock, by contract or otherwise.
 
(b)       Injunction. Notwithstanding any other provisions of this Agreement, Employee acknowledges and agrees that in the event of a violation or threatened violation of any of the provisions of this Section 7, Employer shall have no adequate remedy at law and shall therefore be entitled to enforce each such provision by temporary or permanent injunctive or mandatory relief obtained in any court of competent jurisdiction without the necessity of proving damage or posting any bond or other security, and without prejudice to any other remedies that may be available at law or in equity.

 
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8.     Successors.
 
(a)   This Agreement is personal to the Employee and, without the prior written consent of the Company, shall not be assignable by the Employee otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee’s legal representatives.
 
(b)   This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.
 
   9.     Miscellaneous.
 
(a)       This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives.
 
(b)   All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
 
If to the Employee:
 
________________

______________ __
 
If to the Company:
 
Lions Gate Lighting Corp.
405 Lexington Avenue
26 th Floor, Suite 2640
New York, NY 10174
Fax: 917-368-8005

or to such other address as either party furnishes to the other in writing in accordance with this paragraph (b) of Section 9. Notices and communications shall be effective when actually received by the addressee.
 
(c)   The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. If any provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law.
 
(d)   Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable under this Agreement all federal, state, local and foreign taxes that are required to be withheld by applicable laws or regulations.
 
(e)   The failure of the Employee or the Company to insist upon strict compliance with any provision of, or to assert any right under, this Agreement shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement.
 
(f)        The Employee and the Company acknowledge that this Agreement supersedes any other agreement between them concerning the subject matter hereof.
 
(g)   This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and which together shall constitute one instrument.

[signature page follows]

 
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IN WITNESS WHEREOF, the Employee has hereunto set the Employee's hand and, pursuant to the authorization of its Board, the Company has caused this Agreement to be executed in its name on its behalf, all as of the day and year first above written.

	
			
	 
	 
	LIONS GATE LIGHTING CORP.

	 
	 
	 

	 
	By:
	/s/ Oli Valur Steindorsson

	 
	 
	Name:  Oli Valur Steindorsson

	 
	 
	Title: President and Chief Executive Officer

	 
	 
	 

	 
	 
	EMPLOYEE:

	 
	 
	 

	 
	 
	/s/ Daniel G. Zang

 
 
7Umami-EX 10.33 Labor Contract Agreement

 This is a LENDING OF SERVICES CONTRACT (to be referred to henceforth simply as “The Contract”) which is being entered into by, as the first party, SERVICIOS ADMINISTRATIVOS BAF, S. DE R. L. DE C. V. (to be referred to henceforth as “The Lender of Services”), represented in this action by Mrs. María del Socorro Carreras Castro and, as the other party, BAJA AQUA FARMS, S.A. de C.V. (henceforth to be referred to as “The Client”), represented in this action by Mr. Benito Javier Sarmiento Pérez. This contract is being formalized according to the following:

D E C L A R A T I O N S

I.   The Lender of Services declares, through its representative:

(a)  That it is a corporation which has been properly established in keeping with the laws of Mexico.

(b) That the legal representative who is attending the signing of this contract has the necessary and sufficient qualifications to participate in the same – which authority have not been revoked, modified or limited in any way as of the date of signing of this Contract.

(c)  That its corporate purpose is, among other things, the hiring of human personnel, either directly or by means of third parties, at any level or position, so that the same mighty provide services to the companies with which it has a contractual relationship.

(d)  That it has the experience and the technical, economic, and human resources necessary for providing thess Services to its Clients.

(e)   That it wishes to enter into the present Contract in order to establish the bases, terms and conditions under which it will render Services to the Client.

(f)   That it is registered with the Mexican Taxpayers’ Registry with the following registration number: SAB-010327-PG9.

II.  The Client hereby declares, by means of its legal representative:

(a)   That it is a Mexican corporation, duly chartered and established in accordance with the laws of Mexico.

(b)   That the Legal Representative who is attending the signing of this contract of this Contract has the required authority for the formalization of the same – authority which have not been revoked, modified or limited in any way as of this date.

(c)    That it requires the personnel of the Lender of Services, and the carrying-out of activities which the Lender of Services can provide through the lending of its Services.

(d)   That it wishes to enter into the present Contract in order to establish the bases, terms and conditions under which it will receive the services to be provided by the Lender of Services.

(e)   it is registered with the Mexican Taxpayers’ Registry (The “Registro Federal de Contribuyentes”) with the following registration number: BAF-991209-B16.

BASED ON EVERYTHING HERETOFORE STATED, the parties formalize the present Contract to the tenor of the following:

C L A U S E S

1.DEFINITIONS AND APPENDICES

1.1.      The terms specified below, and which are written beginning with Capital Letters throughout this Contract, shall have the meanings which are stipulated below, whether the same are used in the singular or plural, unless another meaning is specifically assigned to them in a specific section of this Contract.

“Working Day” refers to any day of the year, with the exception of Saturdays, Sundays, and other obligatory holidays, according to the Federal Labor Laws currently in effect in Mexico.
 
“Confidential Information” shall refer to any commercial secrets, technical and financial information, lists of clients and providers which might be provided in regard to this Contract, and the terms and conditions of this Contract, as well as all information identified or marked as confidential.

“Services” refers to the term defined in the Second Clause of this Contract (Clause 2).

1.2.    Certain terms and expressions are defined in particular sections of this Contract.

2. OBJECT

2.1.    Through the intervention of the present Contract, the Lender of Services shall provide, with its own means and its own human personnel, each and every one of the administrative, operational, technical and human services required by the Client (which jointly, and for the purposes of this Contract, shall henceforth be referred to as the “Services”), which are mentioned in a partial but not exhaustive way. Said services are to be lent so that the Client might efficiently achieve and work within its corporate purposes.

2.2.      The place where the Services are to be provided shall be: the central offices, branch offices, plants, ships and/or platforms which belong to the Client, or at any other place required by the latter, whether within Mexico or abroad.

3.PAYMENT

3.1.    The total amount which the Lender of Services shall receive in payment for the lending of Services shall be the amount equivalent to 5% of the total monthly value of expenses made by the Lender of Services in lending Services. Said expenses shall be reimbursed by the Client, and the Lender of Services shall meet the requirements specified in the present Clause.

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3.2.     At the request of the Client, and only in the event that the alter should require it, the Lender of Services shall be bound to provide, within the first ten Working Days of each calendar month, a report in which each and every one of the Services provided in the month  immediately preceding are listed, as well as a description of the activities which the personnel of the Lender of Services has provided to the Client, in a detailed manner, which must include:

3.2.1.    The name of the individual who actually performed the work.
3.2.2.    The date of the activity performed.
3.2.3.    The hours dedicated to said activity.
3.2.4.    A brief description of the activities.

3.3.    The report shall include a list of expenses incurred by the Lender of Services which shall include, among others, administrative expenses, salaries, social security contributions, operating expenses, and other related expenses, which by their nature are analogous to those listed here.

3.4.     The report shall be delivered to the Client within the following ten Working Days, and shall include the signature of the Lender’s legal representative.

3.5.    Payments shall be made upon a request made by the Lender of Services to the Client.

4.EXTRAORDINARY EXPENSES

4.1.    The parties agree in that, in order to achieve greater efficiency in the providing of Services, the Client shall pay – or reimburse to the Lender of Services – certain expenses which cannot be, or might not be, included in the amount used as a basis for determining payments to be made between the parties.

4.2.    Said expenses shall be considered “extraordinary” and must be previously approved by the Client.

4.3.    Any extraordinary expenses, due to that very nature, shall be limited to activities and/or special services required by the Client, such as those mentioned below, and/or any agreed to at any time by the Parties.

4.3.1.    Expenses of the Lender of Services’ personnel, which shall include transportation, food and lodging.
4.3.2.    Uniforms 
4.3.3.    Tools and equipment necessary for use by the personnel of the Lender of 
            Services, which shall at all times be the property of the Client.
4.3.4.    Union dues.

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5.TAXES AND FEES

5.1.      Any taxes or fees which might be caused in regard to the formalization and period of effect of this Contract shall be at the expense of the party legally bound to pay them by the current applicable fiscal laws.

6.REGARDING THE LENDER OF SERVICES’ PERSONNEL

6.1.    Lender of Services shall provide Services to the Client with its workers, and from its own available means, since it has the necessary, qualified personnel to carry out the Services which are the object of this Contract.

6.2.    Since the Lender of Services is a Company established in keeping with Article 31 of the Federal Labor Law, each and every obligation and/or responsibility which might exist or arise for any reason, with the workers and employees of the Lender of Services, shall be the sole and exclusive responsibility of the Lender of Services.

6.3.     The personnel used by the Lender of Services to provide the Services must be fully qualified to carry out an excellent and efficient service. The Client may request of the Lender of Services that it remove any member of its personnel in the event that the same should not meet the quality requirements of the Client. In said event, the Lender of Services shall remove said employee immediately, without any other procedure required than the written request of the Client; the Lender of Services shall take all necessary actions possible to it in order to maintain continuity in the lending of Services.

6.4.     The Lender of Services shall have personnel which is sufficiently trained, specialized and capable of providing Services. The administrative and labor aspect of employment of the personnel used by the Lender of Services, including payment of salaries and benefits, shall be the exclusive responsibility of the latter, for which reason the same holds the Client harmless from all responsibility in that regard. Responsibility for any type of accident, robbery, loss, injury or death which occurs or might occur to any person assigned by the Lender of Services, is the exclusive responsibility of the Lender of Services; the same is obligated to repay the Client, its employees, representatives and/or agents, from any claim, in the event that the same should suffer damages or losses caused directly or indirectly by events or occurrences such as those described in this Clause.

6.5.    The personnel of the Lender of Services shall be properly registered with the Mexican Tax Bureau (The “Secretaría de Hacienda y Crédito Público”), the Mexican Social Security Administration, the Mexican Institute for Workers’ Housing (“Instituto Mexicano para la Vivienda de los Trabajadores”) and the Retirement Savings System (“Sistema de Ahorro para el Retiro”).

6.6.     If, in order to comply with what is stipulated in this Contract, the Lender of Services should require the participation of other persons, it is expressly agreed that the Lender is, and shall be at all times, the only employer of said personnel; therefore, it is responsible for any obligations incurred in the labor relationship with its personnel, in the understanding that, under no circumstances may the Client be considered as a substitute Employer of said personnel. The Lender of Services promises to indemnify and pay said personnel, and hold the Client harmless from any claim, controversy or lawsuit which might arise between the Client and the personnel used by the Lender of Services to provide the Services agreed to in the present Contract.

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7.SUBCONTRACTORS

7.1.    The Lender may use the services of subcontractors to carry out any of the obligations hereunder, upon authorization from the Client.  In this case, the Lender shall be responsible to the Client for the services provided by any subcontractor (its employees and personnel) used by the Lender under this contract. 

7.2.    The Lender shall be responsible to the Client for any actions or failures to act of any subcontractor used by the Lender under this contract. The lender shall indemnify and hold the Client safe and harmless against all damages and losses, and costs and expenses the Client may incur as a consequence of any action, omission or breach by any subcontractor (or its employees) used by the Lender under this contract. 

7.3.    Nothing set forth hereunder shall be deemed as a labor or contractual relationship between the Client and any subcontractor used by the Lender hereunder, and the Lender is bound to indemnify and hold the Client safe and harmless from any demand, complaint, legal action or proceeding against the Client in this regard. 

8.TERM AND TERMINATION

8.1.    This contract will be valid starting on the date of signing of the same and throughout the 2011 calendar year or until cancellation by any of the parties in accordance with what is established by this Clause. 

8.2.    The Client or the Lender may, not withstanding any other right or remedy they may be entitled to hereunder or under the law, terminate this contract in advance without the need of a court ruling, with a written notice to the other party within a minimum period of 15 working days in advance of the intended date of termination, or due to the occurrence of any of the following:  

8.2.1.    If Lender or Client is dissolved or liquidated, files a petition for bankruptcy, makes a Bankruptcy declaration or suspends payments.  

8.2.2.    If Lender or Client incurs on a breach or default of any obligation hereunder and if said breach is not remedied within a period of 15 working days following a notice of default made by the party considering there is a default by the other party. 

9.SURVIVAL

9.1.    The provisions related to confidentiality, termination, notices, venue, applicable law, as any other provisions which for their nature shall survive the termination or completion of this contract shall remain valid after the termination or completion of the same.

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10.CONFIDENTIALITY

10.1.    All the information provided by the Client to the Lender for the rendering of Lender’s services and any other  information produced by the Lender in the course of the rendering of services shall be considered as Confidential Information. 

10.2.      The Parties’ confidential Information shall not include information which: (a) is or will become part of the public domain without the other party’s involvement or omission; (b) was in the other Party’s legal possession prior to being disclosed by, and was not obtained, either directly or indirectly, from the Disclosing Party, (c) was legally disclosed to the other party by a third party without restrictions; or (d) has been developed separately from the other party. 

10.3.    The Parties agree to keep the Confidential Information of each of the parties as confidential during the term of this contract and for a period of four (4) years following the completion of this contract. The parties agree that, unless it is required by the law or any authority, the parties shall not make the Confidential Information of the other party available to any third party in any way whatsoever or use said Confidential Information for any other purpose but the execution of this contract. Each party agrees to take the necessary steps to ensure that Confidential Information is not disclosed or distributed by its employees, agents or subsidiaries in violation of the terms hereunder, or by its financial and legal advisors either. 

11.INDEMNITIES

11.1.    The Lender shall be personally responsible for any labor, fiscal or social security obligation of each and every one of Lender’s employees. Lender agrees to indemnify and hold Client free of any harm regarding any claim, action, damage, loss, expense (including legal counsel expenses) as a consequence of the Lender’s failure to comply with the obligations set forth by this contract - which obligations do not end with this contract’s termination or completion, but will last until the expiration of the Lender’s obligations pursuant to applicable laws. 

12.APPLICABLE LAWS

12.1.    This contract shall be governed by, and construed under, the laws of the Mexican United States (Mexico). 

13.VENUE

13.1.    For anything related to the interpretation and compliance to this contract, including anything related to the enforcement of the same, the parties expressly agree to submit to the venue and jurisdiction of the competent courts of the city of Ensenada, Baja California, waiving any other venue they may be entitled to due to their current or future addresses, or for any other reason.

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14.NOTIFICATIONS

14.1.    All notifications, requirements and requests, and other communications between the parties – including notifications of changes of address, must be made in writing, and will be considered to have been properly communicated when these have been delivered personally or by means of certified mail, with proof of receipt, to the address(es) specified in this clause, or to an address established in and by any notification of a change of address.

TO THE LENDER:

SERVICIOS ADMINISTRATIVOS BAF, S. DE R.L. DE C.V.
      Blvd. Sanchez Taboada 10488 Piso 8
      Zona Urbana Rio Tijuana
      Tijuana, Baja California 22010

TO THE CLIENT:

BAJA AQUA FARMS, S.A. DE C.V.
Calle 12 No. 211 Parque Industrial Fondeport
Col. El Sauzal
Ensenada, Baja California 22760

15.WAIVERS

15.1.     Any omission by either of the Parties in the exercise of the rights stipulated in this Contract shall under no circumstances amount to a waiver of the same; neither shall the singular or partial exercise by either of the Parties of any right derived from this Contract exclude the simultaneous or subsequent exercise of any other right, faculty or privilege.

16. ASSIGNMENT AND/OR WITHDRAWAL

16.1.     Save under the conditions specified in this Contract, neither of the parties may withdraw from, or in any way transfer to another, this Contract, nor the rights and obligations contained in the same, without the written consent of the other party.

17.MODIFICATIONS/AMENDMENTS

17.1.      No modification or disposition of this contract whatsoever, and no consent given by either of the parties to the other, which diverges from the terms and conditions of this Contract will take effect unless it is done in writing and is signed by both parties and, even under those circumstances, any withdrawal or consent will only be effective for the specific case and specific purpose for which it is granted.

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18.SEVERABILITY

18.1.      If a competent court should declare null, invalid or unexecutable any stipulation contained in this Contract, the remaining stipulations contained herein shall remain in full force and effect, and the Parties shall then modify the Contract in such a way that the eliminated Clause shall be as applicable and valid as possible.
19.ENTIRETY OF THIS AGREEMENT 

19.1.      This contract contains the complete Agreement in regard to the matter taken up herein, and replaces any previous or current agreements or communications in regard to its content. No communication, declaration, negotiation or agreement between the parties which is made prior to the formalization of this Contract shall have any effect on the interpretation of the terms and conditions of the same.

20.HEADINGS

20.1.      The parties agree that the heading used for the clauses of this contract are only for reference purposes and do not limit in any way the content and scope of the same; it is the content of said clauses which is binding.

FOR PURPOSES OF FORMALIZATION AND THE CONFERRAL OF LEGAL EFFECT, the Parties, having read this contract and understood their obligations in regard to it, formally declare that there is in the same no error, deceit or intent to injure which might invalidate it; therefore they do sign it, in three original copies, in the City of Ensenada, Baja California, on this 2nd day of January, 2011, in the presence of two witnesses.

 
	
	
	“THE LENDER”
SERVICIOS ADMINISTRATIVOS BAF, S. DE R. L. DE C. V. 

Signed by:   /s/ Maria S. Carreras     
            María del Socorro Carreras Castro

	“THE CLIENT”
BAJA AQUA FARMS, S.A. DE C.V.

Signed by:   /s/ Benito Sarmiento       
                 Benito Javier Sarmiento Pérez

	 

	 

	
		
	WITNESS

By: /s/ Jairsinho Garcia Ochoa   
Name: Jairsinho García Ochoa
	WITNESS

By: /s/ Ana Carballo Garcia   
Name: Ana Alicia Carballo García

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