Document:

renw808s1ez104_1032012.htm

 

Exhibit 10.4

 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is effective as of August 1, 2010, by and between 808 Renewable Energy Corporation, a Nevada corporation (the “Company”), and Patrick S. Carter (“Executive”).

 

RECITALS

 

A. On the effective date of this Agreement, the Company deems Executive to be knowledgeable with respect to the business and affairs of the Company.

 

B. The Company has determined that it is in the best interests of the Company that, as of the effective date of this Agreement, the Company assures itself of the continued services of Executive and Executive’s knowledge and abilities with respect to the business and affairs of the Company under the terms and conditions hereinafter set forth.

 

C. Executive desires to continue in the employ of the Company and is willing to do so under the terms and conditions hereinafter set forth.

 

AGREEMENT

 

NOW, THEREFORE, in accordance with the recitals set forth above and AS CONSIDERATION for the representations, warranties, covenants and agreements set forth in this Agreement, as well as for other good and valuable consideration the receipt and sufficiency of which hereby are acknowledged, the Company and Executive hereby agree as follows:

 

1. Recitals an Integral Part of Agreement. The recitals set forth above are and for all purposes shall be interpreted as being an integral part of this Agreement, constituting acknowledgments and agreements by and between the parties hereto, and are incorporated in this Agreement by this reference.

 

2. Employment. Subject to the terms and conditions set forth in this Agreement, the Company hereby employs Executive, and Executive hereby accepts employment with the Company, as the Company’s President and Chief Executive Officer (“President and CEO”).

 

3. Term. The term of Executive’s employment under this Agreement shall commence effective as of August 1, 2010 and shall continue for a period of five (5) consecutive years (the “Term”), unless earlier terminated as herein provided or by operation of law. Thereafter, this Agreement and the Term shall be extended automatically for successive one (1) year periods unless terminated in accordance with the terms of this Agreement or unless either party hereto, not less than three (3) months before the commencement of any such one (1) year extension period, notifies the other party hereto that this Agreement will expire as of midnight, July 31 of the year immediately-preceding such one (1) year extension period. For all purposes of this Agreement, the defined term “Term” shall include and be deemed to include all extensions of this Agreement and the Term as set forth in this Section 3. This Agreement may be terminated earlier as hereinafter provided.

 

  

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4. Duties and Services. Executive shall perform such duties and functions as Executive is instructed to perform from time to time by the Board of Directors of the Company (the “Board of Directors”) that are reasonably within the scope of the job description of President and CEO. In the performance of Executive’s duties, Executive shall work full-time and shall comply with the policies of the Company and be subject to the direction of the Board of Directors.

 

At all times during the Term, Executive shall perform Executive’s duties and obligations under this Agreement faithfully and diligently, shall devote all of Executive’s business time, attention, abilities and efforts exclusively to the business of the Company and shall not accept other employment or engage in any other outside business activity that interferes with the performance of Executive’s duties and responsibilities under this Agreement or involves actual or potential competition with the business of the Company; provided, however, that Executive shall be permitted to continue Executive’s current activities with 808 Energy 2, LLC and 808 Investments, LLC so long as such activities do not materially detract from Executive’s ability to perform Executive’s duties and obligations under this Agreement. Executive shall perform industriously Executive’s duties under the supervision of and report to the Board of Directors and shall accept and comply with all directions from and all policies from time to time established by the Board of Directors.

 

Executive shall not directly or indirectly render any service of a business, commercial or professional nature to any other person, entity or organization, whether for compensation or otherwise, without the prior consent of the Board of Directors; provided, however, that the foregoing shall not preclude Executive from (a) serving on boards of trade associations or charitable organizations and (b) engaging in charitable activities and community affairs, provided that such directorships and activities do not interfere with the proper performance of Executive’s duties and responsibilities under this Agreement.

 

If, at any time during the Term, Executive is a director of the Company, or is elected or appointed as a director of the Company, Executive shall serve in such capacity without additional compensation, except that Executive may receive such directors’ fees or similar compensation as the Board of Directors may, in its sole and absolute discretion, establish from time to time. At the request of the Board of Directors or the board of directors of one or more subsidiaries of the Company (individually, a “Subsidiary,” and, collectively, “Subsidiaries”) or of any affiliate of the Company (individually, an “Affiliate,” and, collectively, “Affiliates”), Executive shall serve during the Term as a director of any such Subsidiary or Affiliate without additional compensation, except that Executive may receive such directors’ fees or similar compensation as the board of directors of the Subsidiaries or Affiliates may, in their sole and absolute discretion, establish from time to time; and, in the performance of such duties, Executive shall comply with the policies of the board of directors of each such Subsidiary and Affiliate. Unless the context otherwise requires, for purposes of this Agreement, the term “Company” shall be deemed to include the Company’s Subsidiaries, if any, and the Company’s Affiliates, if any. The Company is not required by this Agreement to cause Executive’s election or appointment as a director or officer.

 

  

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5. Base Salary. As compensation for the services rendered by Executive under this Agreement, including all services rendered by Executive as an officer or director of the Company (as applicable), the Company agrees to pay to Executive, and Executive agrees to accept, a base salary at the annual rates that from time to time during the Term are established by the Compensation Committee of the Board of Directors (the “Compensation Committee”) or, if no Compensation Committee exists, by the Board of Directors (the “Base Salary”), payable on the Company’s regular payroll dates for salaried executives, and subject to such withholdings and deductions as are required by law; provided, however, that, except as otherwise provided in this Section 5, in no event shall the Base Salary be less than Three Hundred Seventy-Five Thousand Dollars ($375,000) per year. Subject to the foregoing, any or all of the annual rates for the Base Salary may be increased or decreased at any time and from time to time by and in the discretion of the Compensation Committee or the Board of Directors.

 

6. Additional Compensation.

 

(a) Discretionary Cash Bonus. In addition to the Base Salary, at the end of each fiscal year (defined by the Company as January 1 through December 31) of the Term, Executive shall be eligible (but not necessarily entitled) to receive a cash bonus (the “Discretionary Cash Bonus”), due and payable in cash on the date on which the Compensation Committee or the Board of Directors determines and formally declares its amount (if any). The amount (if any) of the Discretionary Cash Bonus for any particular fiscal year of the Term shall be determined and formally declared (if at all) by the Compensation Committee or the Board of Directors by no later than December 31 of that fiscal year. To be eligible to receive the Discretionary Cash Bonus (if any), Executive must be an employee of the Company on December 31 of that fiscal year. In making such determination (if at all), the Compensation Committee or the Board of Directors may consider, among other factors, Executive’s overall performance, the extent to which the Company achieved its major objectives during the fiscal year and the extent to which Executive contributed toward the achievement of such objectives. In no event shall Executive be entitled or be deemed to be entitled to any Discretionary Cash Bonus, and in no event shall any amount of any Discretionary Cash Bonus have accrued or be deemed to have accrued, until the Compensation Committee or the Board of Directors has determined the amount of such Discretionary Cash Bonus and formally declared it. The decision to award a Discretionary Cash Bonus is to be made in the sole and absolute discretion of the Compensation Committee or the Board of Directors.

 

(b) Automobile Allowance. During the Term, in addition to the Base Salary, Executive shall be entitled to receive from the Company a monthly automobile expense allowance equal to Eight Hundred Dollars ($800); provided, however, that Executive shall be solely and exclusively responsible and liable for maintaining automobile insurance for any automobile acquired or otherwise used by Executive in relation to such allowance.

 

(c) Cellular Telephone, Laptop Computer and Desktop Computer. During the Term, the Company at its sole expense shall make available to Executive for Executive’s use a cellular telephone, a laptop computer and a desktop computer.

 

7. Other Compensation and Benefits. During the Term, Executive shall be eligible to participate in and receive other compensation and benefits provided by the Company to its senior management personnel or its employees generally. Such benefits may include compensation and benefits provided under any profit sharing plan, 401(k) plan, stock option plan, stock purchase plan, pension plan, short and long-term disability insurance plan, hospital insurance plan, major medical insurance plan, dental insurance plan, retirement plan and group life insurance plan in accordance with the terms of such plans, as such plans may be in effect from time to time. The Company reserves the right, in its sole and absolute discretion, to amend, modify or discontinue any of such benefits, in accordance with applicable law.

 

  

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8. Vacation. Unless for any given calendar year during the Term a longer period of vacation for Executive is approved by the Board of Directors, Executive shall accrue twenty (20) days of paid vacation each calendar year during the Term. In accordance with Company policy, unused accrued vacation days may be carried forward from one calendar year to the next. Additional vacation will not accrue once Executive has accrued the number of vacation days equivalent to twice the annual allotment. Accordingly, with an annual rate of twenty (20) vacation days, Executive shall not accrue additional vacation days once Executive has accrued forty (40) vacation days. If Executive’s earned but unused vacation reaches this maximum, then Executive will not accrue more additional vacation benefits. If Executive later uses enough vacation to fall below this maximum,  then Executive will resume earning vacation benefits from that day forward.

 

9. Indemnification Insurance; Indemnification. During the Term, for the period in which Executive is a director or officer of the Company, the Company shall provide Executive with director’s and officer’s liability insurance to the extent that such insurance is provided to other directors and officers of the Company and is available at commercially reasonable premiums. Such insurance shall be in such form, and shall provide for such coverage and deductibles, as shall be commercially reasonable and standard for companies in businesses and circumstances similar to those of the Company.

 

10. Reimbursement of Expenses. The Company shall, upon presentation of appropriate vouchers or receipts in accordance with the Company’s customary policies and practices, reimburse Executive for reasonable out-of-pocket expenses paid for by Executive in connection with the performance of Executive’s duties under this Agreement.

 

11. Termination.

 

(a) Termination by the Company. Executive’s employment under this Agreement shall be terminated upon the death of Executive and also may be terminated by the Company giving appropriate written notice of termination upon the occurrence of any of the following events:

 

(i) The Disability of Executive. For purposes of this Agreement, the term “Disability” shall mean the inability of Executive, due to illness, accident or any other physical or mental impairment, to perform the essential functions of Executive’s position under this Agreement with or without reasonable accommodation for a period of six (6) consecutive months or for an aggregate of nine (9) months, whether or not consecutive, during any twelve (12) consecutive months during the Term. The determination of whether Executive is unable to perform the essential functions of Executive’s position with or without reasonable accommodation shall be made by an independent physician mutually selected by the Company and Executive within five (5) days after the Company’s written request that Executive undergo an examination for such purpose. If the Company and Executive are unable to agree within that time on the identity of the physician who will perform such examination, then the Company and Executive each shall immediately appoint a physician experienced in evaluating the disability at issue, and the two (2) appointed physicians together shall within ten (10) days after such appointment mutually select and appoint a third physician, similarly qualified, to conduct such examination. If the physicians appointed by the Company and Executive are unable to agree upon such third physician within such ten (10) days, then the appointment of such third physician to examine Executive shall occur in accordance with the procedural rules of JAMS referred to in Section 17(a). The Company shall treat any and all medical information regarding Executive as confidential, in accordance with applicable law. The Company and Executive acknowledge and agree that, should Executive have a Disability as herein defined, continued employment of Executive would constitute an undue hardship for the Company.

 

  

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(ii) The Determination That Cause Exists For Such Termination. For purposes of this Agreement, the term “Cause” or “For Cause” shall mean any of the following:

 

(A) Executive’s material breach of any provision or covenant of this Agreement, provided that Executive first shall have received prior written notice from the Board of Directors expressly addressed to Executive stating with specificity the nature of such material breach and affording Executive a reasonable opportunity, as soon as reasonably practicable, but in no event more than thirty (30) days, to initiate appropriate action to cure the material breach complained of; or

 

(B) Executive’s material failure or refusal to perform Executive’s duties as determined by the Board of Directors, provided that Executive first shall have received prior written notice from the Board of Directors expressly addressed to Executive stating with specificity the nature of such material failure or refusal and affording Executive a reasonable opportunity, as soon as reasonably practicable, but in no event more than thirty (30) days, to initiate appropriate action to correct the acts or omissions complained of; or

 

(C) Executive’s material breach of any provision or covenant of the Proprietary Information and Invention Assignment Agreement referred to in Section 15 and attached hereto as Exhibit C; or

 

(D) Executive’s conviction of, admission of guilt to or plea of nolo contendre or similar plea (which, through lapse of time or otherwise, is not subject to appeal) with respect to any felony or any other crime involving moral turpitude; or

 

(E) Executive’s conviction of, admission of guilt to or plea of nolo contendre or similar plea (which, through lapse of time or otherwise, is not subject to appeal) with respect to any crime or offense of theft, embezzlement, fraud, misappropriation of funds or other act of dishonesty by Executive involving money or other property of the Company or any Subsidiary or Affiliate committed after the date of this Agreement; or

 

(F) Any act by Executive in violation of Section 13 or any disclosure by Executive in violation of Section 14; or

 

(G) Executive’s engagement in any transaction involving a material conflict of interest that was not disclosed to and approved by the Board of Directors; or

 

(H) An intentional misrepresentation by the Executive that is likely to have a material adverse impact on the business operations or financial or other condition of the Company; or

 

  

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(I) Unless otherwise approved by the Board of Directors, the securing by Executive of any personal profit in connection with the Company’s business except as contemplated by this Agreement; or

 

(J) Executive’s use of alcohol, which use interferes with the performance of Executive’s duties under this Agreement, or Executive’s use of illegal narcotics; or

 

(K) Executive’s violation of any Company policy, including any Company policy relating to discrimination or harassment; or

 

(L) Executive’s engagement in any violation of law in Executive’s capacity as President and CEO of the Company or any breach by Executive of Executive’s duty of loyalty to the Company.

 

(b) Voluntary Termination by Executive. Executive may terminate Executive’s employment under this Agreement, for Good Reason or without Good Reason, effective thirty (30) days after Executive’s delivery to the Company of written notice of such termination. For purposes of this Agreement, “Good Reason” means and shall exist if:

 

(i) The Company relocates its principal executive offices outside the area within a radius of twenty five (25) miles from Huntington Beach, California, without the express written consent of Executive, and Executive gives the Company written notice of Executive’s objection to such relocation within five (5) days of being informed of such contemplated relocation; or

 

(ii) Without Executive’s express written consent, the Company substantially reduces Executive’s duties and responsibilities such that it results in a material adverse reduction in Executive’s position, authority or responsibilities, and the Company fails to cure such reduction in duties and responsibilities within twenty (20) days after Executive gives to the Company written notice specifying the particular acts objected to and the specific cure requested.

 

(c) Merger, Consolidation, Reorganization or Sale of Assets. This Agreement shall not be terminated either (i) upon or by any merger, consolidation, reorganization or similar transaction in which the Company is not the surviving or resulting corporation or entity or (ii) upon or by any transfer of all or substantially all of the assets of the Company. Upon any such merger, consolidation, reorganization or similar transaction, or upon any such transfer of assets, the terms and provisions of this Agreement shall be binding on and shall inure to the benefit of the surviving or resulting corporation or other entity or the corporation or other entity to which such assets are so transferred.

 

(d) Resignation as Director and Officer. In the event of any termination under this Section 11 of Executive’s employment under this Agreement, Executive shall be deemed to have resigned voluntarily as a director and officer of the Company or any of its Subsidiaries or Affiliates if Executive was serving in such capacity at the time of termination.

 

  

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(e) Return of Company Documents. In the event of any termination of Executive’s employment under this Agreement, Executive shall before or on the date of such termination deliver to the Company (and shall not keep in Executive’s possession or deliver to anyone else) all devices, records, data, notes, reports, proposals, lists, customer lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property or reproductions of any of the aforementioned items belonging to the Company, its Subsidiaries, its Affiliates, its successors or its assigns; provided, however, that Executive shall have the right to retain in Executive’s possession examples of Executive’s documentary work product that contains no Confidential Information (as defined in Section 14(a)) as determined by the Board of Directors, such determination of the Board of Directors constituting a pre-condition to such right of retention. On the date of termination of Executive’s employment with the Company under this Agreement, Executive shall sign and deliver to the Company the “Termination Certification” attached hereto as Exhibit A.

 

(f) Survival. The termination of Executive’s employment under this Agreement shall not affect the enforceability of Sections 12, 13, 14 and 15.

 

12. Compensation Upon Termination.

 

(a) Upon Termination Upon Death. If Executive’s employment is terminated upon Executive’s death in accordance with Section 11(a), then, in exchange for execution of a general release and California Civil Code Section 1542 waiver (a copy of which is attached hereto as Exhibit B), the Company will pay Executive’s spouse, heirs, estate or personal representative, as the case may be, an amount (the “Death Severance Payment”) equal to twelve (12) months’ Base Salary in effect on the date of termination plus reimbursement, under Section 10, for business expenses incurred by Executive up to the date of termination. The Death Severance Payment will be paid within sixty (60) days after the Company’s receipt of the executed general release and California Civil Code Section 1542 waiver. The Death Severance Payment is in addition to payment of Base Salary earned and payment of any unused accrued vacation through and including the date of termination.

 

The Death Severance Payment shall constitute Executive’s sole right and exclusive remedy in the event of such termination of Executive’s employment, and upon payment by the Company of the Death Severance Payment, all other rights or remedies otherwise available shall cease immediately, and the Company shall have no further obligations to Executive under this Agreement, except that Executive shall have the right to exercise all benefits that have vested as of the date of termination to which Executive is entitled under any compensation or employee benefit plan of the Company in accordance with the terms and provisions of such compensation or employee benefit plan, all other documents and agreements that give rise to or otherwise govern such vested benefits and all applicable laws and regulations.

 

(b) Upon Termination Upon Disability. If Executive’s employment is terminated upon Executive’s Disability in accordance with Section 11(a)(i), then, in exchange for execution of a general release and California Civil Code Section 1542 waiver (a copy of which is attached hereto as Exhibit B), the Company will pay Executive an amount (the “Disability Severance Payment”) equal to twelve (12) months’ Base Salary in effect on the date of termination plus reimbursement, under Section 10, for business expenses incurred by Executive up to the date of termination; provided, however, that, the Disability Severance Payment shall be reduced by the sum of the amounts, if any, payable to Executive at or before the time of the Disability Severance Payment under any disability benefit plan or program of the Company. The Disability Severance Payment will be paid within sixty (60) days after the Company’s receipt of the executed general release and California Civil Code Section 1542 waiver. The Disability Severance Payment is in addition to payment of Base Salary earned and payment of any unused accrued vacation through and including the date of termination.

 

  

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Except for workers’ compensation benefits to which Executive may be entitled, the Disability Severance Payment shall constitute Executive’s sole right and exclusive remedy in the event of such termination of Executive’s employment, and upon payment by the Company of the Disability Severance Payment, all other rights or remedies otherwise available shall cease immediately, and the Company shall have no further obligations to Executive under this Agreement, except that Executive shall have the right to exercise all benefits that have vested as of the date of termination to which Executive is entitled under any compensation or employee benefit plan of the Company in accordance with the terms and provisions of such compensation or employee benefit plan, all other documents and agreements that give rise to or otherwise govern such vested benefits and all applicable laws and regulations.

 

(c) Upon Termination For Cause. If the Company terminates Executive’s employment For Cause in accordance with Section 11(a)(ii), then Executive will receive payment of Base Salary earned and payment of any unused accrued vacation through and including the date of termination (the “For Cause Payment”).

 

The For Cause Payment shall constitute Executive’s sole right and exclusive remedy in the event of such termination of Executive’s employment, and upon payment by the Company of the For Cause Payment, all other rights or remedies otherwise available shall cease immediately, and the Company shall have no further obligations to Executive under this Agreement, except that Executive shall have the right to exercise all benefits that have vested as of the date of termination to which Executive is entitled under any compensation or employee benefit plan of the Company in accordance with the terms and provisions of such compensation or employee benefit plan, all other documents and agreements that give rise to or otherwise govern such vested benefits and all applicable laws and regulations.

 

(d) Upon Voluntary Termination by Executive. If Executive voluntarily terminates Executive’s employment in accordance with Section 11(b) for Good Reason, then, in exchange for execution of a general release and California Civil Code Section 1542 waiver (a copy of which is attached hereto as Exhibit B), the Company will pay Executive an amount (the “Good Reason Voluntary Termination Severance Payment”) equal to Base Salary in effect on the date of termination, for all months otherwise remaining in the Term notwithstanding such termination but in no event less than twelve (12) months, plus reimbursement, under Section 10, for business expenses incurred by Executive up to the date of termination. The Good Reason Voluntary Termination Severance Payment will be paid within sixty (60) days after the Company’s receipt of the executed general release and California Civil Code Section 1542 waiver. The Good Reason Voluntary Termination Severance Payment is in addition to payment of base salary earned and payment of any unused accrued vacation through and including the date of termination. In addition, if Executive voluntarily terminates Executive’s employment in accordance with Section 11(b) for Good Reason, then, also in exchange for execution of a general release and California Civil Code Section 1542 waiver (a copy of which is attached hereto as Exhibit B), all stock options then held by Executive that are subject to vesting shall automatically upon such termination be fully vested and shall remain exercisable in accordance with their terms for a period of twelve (12) months following the date of such termination (notwithstanding any term or provision of any document (e.g., a stock option agreement) to the contrary).

 

  

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If Executive voluntarily terminates Executive’s employment in accordance with Section 11(b) without Good Reason, then Executive will receive payment of Base Salary earned and payment of any unused accrued vacation through and including the date of termination (the “Without Good Reason Voluntary Termination Severance Payment”).

 

In either event, the Good Reason Voluntary Termination Severance Payment or the Without Good Reason Voluntary Termination Severance Payment, as the case may be, shall constitute Executive’s sole right and exclusive remedy in the event of such termination of Executive’s employment, and upon payment by the Company of either the Good Reason Voluntary Termination Severance Payment or the Without Good Reason Voluntary Termination Severance Payment, as the case may be, all other rights or remedies otherwise available shall cease immediately, and the Company shall have no further obligations to Executive under this Agreement, except that Executive shall have the right to exercise all benefits that have vested as of the date of termination to which Executive is entitled under any compensation or employee benefit plan of the Company in accordance with the terms and provisions of such compensation or employee benefit plan, all other documents and agreements that give rise to or otherwise govern such vested benefits and all applicable laws and regulations.

 

(e) Upon Termination Other Than Upon Death or Disability or For Cause or Upon Voluntary Termination. If Executive’s employment is terminated other than pursuant to Sections 11(a), 11(a)(i), 11(a)(ii) or 11(b), then, in exchange for execution of a general release and California Civil Code Section 1542 waiver (a copy of which is attached hereto as Exhibit B), the Company will pay Executive an amount (the “Without Cause Severance Payment”) equal to Base Salary in effect on the date of termination, for all months otherwise remaining in the Term notwithstanding such termination but in no event less than twelve (12) months, plus reimbursement, under Section 10, for business expenses incurred by Executive up to the date of termination. The Without Cause Termination Severance Payment will be paid within sixty (60) days after the Company’s receipt of the executed general release and California Civil Code Section 1542 waiver. The Without Cause Termination Severance Payment is in addition to payment of Base Salary earned and payment of any unused accrued vacation through and including the date of termination. In addition, if Executive’s employment is terminated other than pursuant to Sections 11(a), 11(a)(i), 11(a)(ii) or 11(b), then, also in exchange for execution of a general release and California Civil Code Section 1542 waiver (a copy of which is attached hereto as Exhibit B), all stock options then held by Executive that are subject to vesting shall automatically upon such termination be fully vested and shall remain exercisable in accordance with their terms for a period of twelve (12) months following the date of such termination (notwithstanding any term or provision of any document (e.g., a stock option agreement) to the contrary).

 

The Without Cause Severance Payment shall constitute Executive’s sole right and exclusive remedy in the event of such termination of Executive’s employment, and upon payment by the Company of the Without Cause Severance Payment, all other rights or remedies otherwise available shall cease immediately, and the Company shall have no further obligations to Executive under this Agreement, except that Executive shall have the right to exercise all benefits that have vested as of the date of termination to which Executive is entitled under any compensation or employee benefit plan of the Company in accordance with the terms and provisions of such compensation or employee benefit plan, all other documents and agreements that give rise to or otherwise govern such vested benefits and all applicable laws and regulations.

 

  

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(f) Exclusivity of Payments. Upon termination of Executive’s employment under this Agreement, Executive shall not be entitled to any severance payment or severance benefit from the Company other than the payments and benefits provided in this Section 12.

 

(g) Withholding of Taxes; Tax Reporting. The Company may withhold from any amount payable under this Agreement all such federal, state, city and other taxes and may file with appropriate governmental authorities all such information, returns or other reports with respect to the tax consequences of any amount payable under this Agreement as may in the Company’s reasonable judgment be required.

 

(h) Section 280G. Anything in this Agreement to the contrary notwithstanding, Executive’s payments and benefits under this Agreement and all other arrangements or programs shall not, in the aggregate, exceed the maximum amount that may be paid to Executive without triggering golden parachute penalties under Section 280G and related provisions of the Internal Revenue Code of 1986, as amended, as determined in good faith by the Company’s independent auditors. If Executive’s benefits must be cut back to avoid triggering such penalties, then Executive’s benefits shall be cut back in the priority order that Executive designates or, if Executive fails to designate promptly such an order, in the priority order that the Company designates. Executive and the Company shall cooperate reasonably with each other in connection with any administrative or judicial proceeding about the existence or amount of golden parachute penalties on payments or benefits that Executive receives from the Company.

 

13. Covenants Not to Compete.

 

(a) Covenants. During the Term, Executive shall not, directly or indirectly, as an employee, agent, advisor, independent contractor, officer, director, manager, member, partner, owner, consultant or otherwise, (i) compete with the Company or with any of its Subsidiaries or Affiliates, (ii) solicit for employment or any other capacity any employee or executive of the Company or of any of its Subsidiaries or Affiliates, (iii) induce or attempt to induce any employee of the Company or of any of its Subsidiaries or Affiliates to leave the employ of the Company or of any of its Subsidiaries or Affiliates, (iv) solicit any actual or potential customer of the Company or of any of its Subsidiaries or Affiliates for any business that competes directly or indirectly with the Company or any of its Subsidiaries or Affiliates or (v) interfere with, disrupt or attempt to disrupt the relationship, contractual or otherwise, between any customer, licensor, licensee, supplier, consultant or employee of the Company or of any of its Subsidiaries or Affiliates. An activity competitive with an activity engaged in by the Company or by any of its Subsidiaries or Affiliates shall include becoming an employee, agent, advisor, independent contractor, officer, director, manager, member, partner, owner, consultant or other assistant or representative of, or being an investor to any extent or in any manner in, any entity or person engaged in any business that is competitive with the business of the Company. Notwithstanding any of the foregoing, for purposes of this Agreement, the beneficial ownership by Executive of less than a five percent (5.0%) interest in any publicly-traded entity shall not be deemed to be competition with the Company or with any of its Subsidiaries or Affiliates.

 

  

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(b)           Solicitation of Employees. Executive agrees that, for a period of one (1) year after the termination of Executive’s employment with the Company, Executive shall not employ or offer to employ or solicit the employment of any employee of the Company or of any of its Subsidiaries or Affiliates, either for Executive’s own purpose or for any other person or entity. Executive further agrees that Executive shall not divulge any of the Company’s Confidential Information (as that term is defined in Section 14) to solicit, directly or indirectly, employees, contractors, licensees or customers of the Company or of any of its Subsidiaries or Affiliates, either for Executive’s own purpose or for any other person or entity.

 

(c)           Enforceability. The covenants set forth in Sections 13(a) and 13(b) shall be construed as an agreement independent of any other provision of this Agreement, and the existence of any claim or cause of action of Executive against the Company or against any of its Subsidiaries or Affiliates, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of any of such covenants. Executive expressly waives any right to assert inadequacy of consideration as a defense to enforcement of any of the provisions of this Section 13. Executive and the Company hereby acknowledge that it is the desire and intent of Executive and the Company, and Executive and the Company hereby agree, that the terms and provisions of this Section 13 shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.

 

14. Covenants Regarding Confidentiality.

 

(a) Covenants. Executive acknowledges and agrees that Executive has been and will continue to be entrusted with trade secrets and proprietary information regarding Inventions (as defined in the Proprietary Information and Invention Assignment Agreement attached hereto as Exhibit C), the products, processes, know-how, designs, formulas, marketing techniques and future business plans, customer lists and information concerning the identity, needs and desires of actual and potential customers of the Company, its Subsidiaries or its Affiliates, competitive analyses, pricing policies, the substance of agreements with customers and others, marketing or concession arrangements, servicing and training programs and arrangements, developmental or experimental work, improvements, inventions, formulas, ideas, designs, computer programs, data bases, other original works of authorship, financial information or other subject matter pertaining to any business of the Company or any of its Subsidiaries, Affiliates, consultants or licensees and all documents embodying such confidential information (collectively, “Confidential Information”), all of which derives significant economic value from not being generally known by others outside the Company. In connection with the foregoing, Executive specifically acknowledges (a) that the customer lists of the Company are confidential and not readily known by the Company’s competitors, (b) that such customers are particularly important to the Company’s business, (c) that business relationships between such customers and the Company normally would continue unless interfered with and (d) that solicitation of such customers by Executive, following termination of Executive’s employment under this Agreement, would cause injury to the Company’s business.

 

  

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During the Term and thereafter, except for the sole benefit of the Company or with the express written consent of the Board of Directors, Executive shall not at any time, directly or indirectly, disclose to or permit to be known by any person, firm, corporation or other form of entity any Confidential Information acquired by Executive during the course of or as an incident to Executive’s employment under this Agreement, or as a result of Executive’s association with the Company or any of its Subsidiaries or Affiliates, whether or not relating to the Company or any of its Subsidiaries or Affiliates, the directors of the Company or its Subsidiaries or Affiliates, or any corporation, partnership or other entity owned or controlled, directly or indirectly, by any of the foregoing, or in which any of the foregoing has a beneficial interest, including the business affairs of each of the foregoing, except as required by law to be disclosed (in which case Executive first shall give the Company written notice of such requirement reasonably in advance of such anticipated required disclosure and shall assist the Company in obtaining a protective order or confidential treatment to the extent requested by the Company). Notwithstanding any of the foregoing, for purposes of this Agreement, the term “Confidential Information” shall not include any information that was in the public domain at the time of disclosure to Executive or that comes lawfully into the public domain without breach of this Agreement.

 

(b) Enforceability. The covenants set forth in Section 14(a) shall be construed as an agreement independent of any other provision of this Agreement, and the existence of any claim or cause of action of Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of any of such covenants. Executive expressly waives any right to assert inadequacy of consideration as a defense to enforcement of any of the provisions of this Section 14. Executive and the Company hereby acknowledge that it is the desire and intent of Executive and the Company, and Executive and the Company hereby agree, that the terms and provisions of this Section 14 shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.

 

15. Proprietary Information and Invention Assignment Agreement. As a material inducement to the Company to execute and deliver to Executive this Agreement, and as a condition to the enforceability of this Agreement against the Company, concurrently with Executive’s execution and delivery to the Company of this Agreement, Executive shall execute and deliver to the Company a Proprietary Information and Invention Assignment Agreement substantially in the form attached hereto as Exhibit C (the “Proprietary Information and Invention Assignment Agreement”).

 

16. Unique Nature of Services; Right to Injunction. Executive acknowledges and agrees that Executive’s services under this Agreement are unique and of extraordinary character and that it would be extremely difficult or impossible for the Company to replace such services or determine the damages that would result from the loss of such services. Executive therefore agrees that the Company’s remedies at law are inadequate in the event of any breach of this Agreement by Executive, and Executive consents to the issuance of a temporary restraining order, preliminary and permanent injunction and other appropriate relief to restrain any actual or threatened violation of this Agreement, without limiting any of the other remedies that the Company may have at law or in equity. If Executive violates or threatens to violate any of the provisions of this Agreement, then, in addition to all other rights and remedies that the Company may have under the terms of this Agreement and all applicable law, the Company shall have the right to seek and obtain equitable relief in the form of a temporary restraining order and permanent injunction against Executive and any corporation, business, firm, partnership, limited liability company, association, consortium, group, other form of entity or individual participating in such violation or threatened violation, without the proof of actual damages.

 

  

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17. Mediation, Arbitration and Consent to Jurisdiction.

 

(a) Mediation and Arbitration.

 

(i) If a dispute, claim or controversy arises between the Company and Executive with respect to any provision of this Agreement, or the interpretation or performance of this Agreement, and such dispute, claim or controversy is declared by written notice from one party hereto to the other, then the Company and Executive shall negotiate in good faith toward resolution of such dispute, claim or controversy. If such dispute, claim or controversy cannot be resolved within a period of sixty (60) days (or such shorter period as may be specified herein) after such notice is given, then the Company and Executive first shall endeavor to settle such dispute, claim or controversy in an amicable manner by mediation administered by Judicial Arbitration & Mediation Services, Inc. (“JAMS”) under JAMS’ employment dispute resolution mediation rules, before resorting to arbitration. Thereafter, any remaining unresolved dispute, claim or controversy arising out of or relating to this Agreement, or the breach thereof, shall be settled by binding arbitration in Orange County, California, under the laws of the State of California, in accordance with the binding arbitration rules of JAMS unless and except if in conflict with this Agreement. The arbitration tribunal shall consist of one (1) arbitrator. The determination of the arbitrator shall be conclusive and binding on the Company and Executive. The identity of the arbitrator shall be mutually acceptable to both the Company and Executive, and the arbitrator shall preside and decide the dispute, claim or controversy unless the Company and Executive agree in writing to the contrary. If the Company and Executive fail to agree on the identity of the arbitrator, then the Company and Executive shall accept an arbitrator appointed by JAMS.

 

(ii) The award of the arbitrator may be, alternatively or cumulatively, for monetary damages, an order requiring the performance of non-monetary obligations (including specific performance) or any other appropriate order or remedy. The arbitrator may issue interim awards and order provisions or measures that should be taken in order to preserve the respective rights of the Company and Executive.

 

(iii) Any award rendered by the arbitrator shall be in writing, setting forth the reasons for the award, and shall be the final disposition on the merits. Judgment upon the award may be rendered in any court having jurisdiction, or application may be made to any such court having jurisdiction, or application may be made to any such court for a judicial acceptance of the award and an order of enforcement, as the case may be. The Company and Executive waive any right that they may enjoy under any federal or state law to apply to any federal or state court for relief from the provisions of this paragraph or from any decision of the arbitrator made before the award. The Company and Executive acknowledge and agree that each of them is waiving the right to a jury trial.

 

(iv) The party that prevails in the arbitration shall be entitled to recover from the party that loses in the arbitration all expenses, including reasonable attorneys’ fees and expenses, incurred in ascertaining such party’s rights and in preparing to enforce or defend and in enforcing or defending such party’s rights under this Agreement.

 

  

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(v) The procedure set forth in this Section 17(a) shall be the exclusive remedy available to the Company and Executive to resolve any dispute, claim or controversy arising under this Agreement or out of Executive’s employment with the Company.

 

(b) Consent to Jurisdiction. Notwithstanding anything to the contrary contained in Section 17(a), each of the Company and Executive hereby irrevocably submits to the exclusive jurisdiction of the Superior Court of the State of California, Orange County, or to the exclusive jurisdiction of the United States District Court, Central District of California (Southern Division), only for the purposes of either (i) obtaining relief not within the jurisdiction or powers of the arbitrator, in connection with any suit, action or other proceeding brought by any party hereto or any of its respective heirs, successors or assigns, as applicable, arising out of or related to Sections 13, 14, 15 and 16 or (ii) the enforcement of the arbitrator’s determination as provided in Section 17(a); and each of the Company and Executive agrees not to assert by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim that such party hereto is not subject to the jurisdiction of the above-named courts, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement may not be enforced in or by such courts. All actions and proceedings permitted to be instituted under this Agreement by Executive or Executive’s successors or assigns in a forum other than arbitration arising out of or related to this Agreement or the transactions contemplated by this Agreement shall be commenced only in the courts having a situs in Orange County, California.

 

18. Representations, Warranties and Covenants of Executive. In order to induce the Company to enter into and perform this Agreement, Executive represents and warrants that Executive is not a party to any contract, agreement or understanding that prevents or prohibits Executive from entering into this Agreement or fully performing all of Executive’s obligations under this Agreement and that Executive’s performance of all of the terms of this Agreement and Executive’s employment by the Company does not and will not breach any agreement to keep in confidence proprietary information acquired by Executive in confidence or in trust before Executive’s employment by the Company.

 

19. Voluntary Execution and Delivery; Legal Counsel. Executive acknowledges that Executive has read carefully this Agreement and understands its terms and that Executive voluntarily is executing and delivering this Agreement. Executive acknowledges that the Company’s legal counsel is not legal counsel to Executive and has not advised Executive in any way in connection with or regarding this Agreement. Executive represents, warrants and acknowledges to the Company that Executive has been given and had the opportunity to be represented by independent legal counsel in connection with this Agreement and has consulted with such legal counsel or has waived Executive’s right to do so.

 

20. Miscellaneous.

 

(a) Governing Law. The validity, construction, interpretation and enforceability of this Agreement shall be determined and governed by the laws of the State of California. Notwithstanding the foregoing, if any law or set of laws of the State of California requires or otherwise dictates that the laws of another state or jurisdiction be applied in any proceeding involving this Agreement, then such law or laws of the State of California shall be superseded by this Section 20(a), and the remaining laws of the State of California nonetheless shall be applied in such proceeding.

 

  

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(b) Severability. If any court of competent jurisdiction determines that any provision of this Agreement is, but for the provisions of this Section 20(b), illegal or void as against public policy, for any reason, then such provision shall automatically be amended or modified to the extent (but only to the extent) necessary to make it sufficiently narrow in scope, time and geographic area that such court shall determine it not to be illegal or void as against public policy. If any such provision cannot be amended or modified to the extent provided in the immediately-preceding sentence hereof, then such provision shall be severed from this Agreement. In either event, all other remaining terms and provisions of this Agreement and of each other agreement entered into pursuant to this Agreement shall remain in full force and effect and shall remain binding on the Company and Executive as if such severed provision had not been contained herein. Any such amendment, modification or severance shall apply only with respect to the operation of this Agreement in the particular jurisdiction in which such determination of illegality or unenforceability is made.

 

(c) Notices. Any notice or communication required or permitted under this Agreement shall be in writing and shall be deemed to have been received by the party to whom such notice or communication is addressed (i) upon delivery, if delivered personally, or (ii) upon receipt by the transmitting party, if transmitting such notice or communication via telex or facsimile machine, of an acknowledgment of receipt of such notice or communication transmitted by the receiving party to the transmitting party via telex or facsimile machine, or (iii) twenty four (24) hours after deposited, prepaid, in a FedEx or similar depository for expedited overnight delivery or (iv) ten (10) business days after deposited in the United States mail, registered or certified, postage prepaid, return receipt requested, addressed as follows:

 

	 	 If to the Company:	 808 Renewable Energy Corporation
	 	 	
Attn:    Secretary

5011 Argosy Avenue, Suite 4

	 	 	Huntington Beach, CA  92649
	 	 	FAX: (714) 891-4121
	 	 	 
	 	 If to Executive: 	Executive’s address on file with the Company

 

or to such other persons or addresses as either of the Company or Executive from time to time may provide in writing to each other.

 

(d) Waiver. No failure on the part of either party hereto to exercise, and no delay in exercising, any right, power or remedy under this Agreement shall operate as a waiver thereof or as a waiver of any other right, power or remedy under this Agreement or the performance of any obligation under this Agreement of either party hereto; and no single or partial exercise by either party hereto of any right, power or remedy under this Agreement shall preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

 

  

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(e) Amendment and Modification. Subject to applicable law and upon the approval of the Board of Directors, this Agreement may be amended, modified and supplemented with respect to any of the terms of this Agreement by written agreement by and between the Company and Executive. The provisions of this Agreement shall not be extended, varied, changed, modified, amended or supplemented other than by an agreement in writing approved by the Board of Directors and executed by both a duly authorized officer of the Company and Executive.

 

(f) Assignability and Binding Effect. This Agreement shall inure to the benefit of and be binding on the heirs, executors, administrators, successors and legal representatives of Executive and shall inure to the benefit of and be binding on the Company and its successors and assigns, but the obligations of Executive under this Agreement may not be delegated by any purported assignment of this Agreement by Executive.

 

(g) Captions and Headings. The captions and headings used in this Agreement are for convenience of reference only and do not constitute a part of this Agreement and shall not be deemed to limit, characterize or in any way affect any term or provision of this Agreement, and all terms and provisions of this Agreement shall be enforced and construed as if no captions or headings appeared in this Agreement.

 

(h) Interpretation and Construction. If any provision of this Agreement requires interpretation by an arbitrator or court, then such interpretation or construction shall not apply a presumption that the terms hereof shall be more strictly construed against the Company by reason of the rule of construction that a document is to be construed more strictly against the person or agent of such person who prepared the same, it being hereby acknowledged and agreed by both the Company and Executive that both of them participated in the negotiation and preparation of this Agreement.

 

(i) General Usage. Except where the context clearly requires to the contrary, (i) each reference in this Agreement to a designated “Section” is to the corresponding Section of this Agreement; (ii) instances of gender or entity-specific usage (e.g., “his,” “her,” “its,” “person” or “individual”) shall not be interpreted to preclude the application of any provision of this Agreement to any individual or entity; (iii) the word “or” shall not be applied in its exclusive sense; (iv) the word “including” (or “include”) shall mean “including, without limitation,” (or “include, without limitation,”); (v) references to laws, regulations and other governmental rules, as well as to contracts, agreements and other instruments, shall mean such rules and instruments as in effect at the time of determination (taking into account all amendments thereto effective at such time without regard to whether such amendments were enacted or adopted after the effective date of this Agreement) and shall include all successor rules and instruments thereto; and (vi) references to “Dollars” or “$” shall mean the lawful currency of the United States.

 

(j) Further Assurances. Each of the Company and Executive shall execute and deliver all such further instruments and take such other and further actions as reasonably may be necessary or appropriate to carry out the provisions of this Agreement.

 

(k) Limitations on Actions. Executive agrees not to commence any action arising out of or in any way related to this Agreement or to Executive’s employment with the Company more than six (6) months after the termination of Executive’s employment. Executive agrees that six (6) months is a reasonable amount of time in which to commence any such action and expressly waives any statute of limitations to the contrary.

 

  

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(l) Entire Agreement and Binding Effect. This Agreement and the Proprietary Information and Invention Assignment Agreement (collectively, the “Agreements”) constitute the entire agreement of the parties hereto and supersedes all prior understandings, agreements or representations by or between the parties hereto, whether oral or in writing, that may have been related to the subject matter of the Agreements in any manner. No restrictions, promises, warranties, covenants or undertakings exist relating to the subject matter of the Agreements other than those expressly provided for in the Agreements.

 

(m) Counterpart Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement, but all of which together shall constitute one instrument.

 

[Signature Page Follows]

 

  

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

 

	
The “Company”:

	  	
“Executive”:

	 
	  	  	  	 
	
808 RENEWABLE ENERGY CORPORATION,

a Nevada corporation

	  	  	 
	  	  	  	 
	
By:

	
/s/Patrick S. Carter

	  	
/s/Patrick S. Carter

	 
	
Name:

Title:

	
Patrick S. Carter

CEO

	  	
Patrick S. Carter

	 

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

-18-renw808s1ez105_1032012.htm

 

Exhibit 10.5

 

 

STOCK PURCHASE AND MEMBERSHIP INTEREST

CONTRIBUTION AGREEMENT

 

THIS STOCK PURCHASE AND MEMBERSHIP INTEREST CONTRIBUTION AGREEMENT (this “Agreement”) is effective as of December 31, 2010 by and between 808 Renewable Energy Corporation, a Nevada corporation (the “Company”), and Patrick S. Carter (“Purchaser”).

 

The parties agree as follows:

 

1.           Sale of Stock. The Company hereby agrees to sell to Purchaser and Purchaser hereby agrees to purchase from the Company an aggregate of Two Million Six Hundred Forty Thousand Two Hundred Fifty-Nine (2,640,259) shares of the Company’s Common Stock, par value $.001 per share (the “Shares”), as consideration for Purchaser’s irrevocable contribution, conveyance, assignment, transfer and delivery to the Company (collectively, “Purchaser’s Contribution”) of all of Purchaser’s right, title and interest in, to and under Two Million Six Hundred Forty Thousand Two Hundred Fifty-Nine (2,640,259) Units of Membership Interest of 808 Energy 2, LLC, a Nevada limited liability company, currently constituting approximately ninety percent (90%) of the issued and outstanding Units of Membership Interest of 808 Energy 2, LLC (the “Contributed LLC Membership Interests”), free and clear of any lien, claim or encumbrance. In connection with Purchaser’s Contribution and to ensure its legal effectiveness and enforceability for all purposes, concurrently with Purchaser’s execution and delivery of this Agreement, Purchaser shall execute and deliver to the Company an assignment substantially in the form of Exhibit A hereto (the “Assignment”) and shall deliver to the Company all certificates (if any) (collectively, the “LLC Certificates”) representing the Contributed LLC Membership Interests, duly endorsed by Purchaser for transfer to the Company.

 

2.           Issuance of Shares. Upon execution of this Agreement by Purchaser and the Company, Purchaser’s execution and delivery to the Company of the Assignment and Purchaser’s delivery to the Company of the LLC Certificates (if any), duly endorsed by Purchaser for transfer to the Company, the Company shall issue a duly-executed certificate evidencing the Shares in the name of Purchaser.

 

3.           Purchaser’s Representations and Warranties. In connection with the purchase of the Shares, Purchaser represents and warrants to the Company the following:

 

(a)                      Purchaser is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Shares. Purchaser is purchasing the Shares for investment for Purchaser’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

 

  

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(b)                      Purchaser understands that the Shares have not been registered under the Securities Act by reason of a specific exemption therefrom, which exemption depends on, among other things, the bona fide nature of Purchaser’s investment intent as expressed herein. In this connection, Purchaser understands that, in the view of the Securities and Exchange Commission (the “SEC”), the statutory basis for such exemption may not be present if Purchaser’s representations meant that Purchaser’s present intention was to hold the Shares for a minimum capital gains period under applicable tax statutes, for a deferred sale, for a market rise, for a sale if the market does not rise or for a year or any other fixed period in the future.

 

(c)                      Purchaser further acknowledges and understands that the Shares must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available. Purchaser further acknowledges and understands that the Company is under no obligation to register the Shares.

 

(d)                      Purchaser is aware of the adoption of Rule 144 by the SEC, promulgated under the Securities Act, which permits limited public resales of securities acquired in a nonpublic offering, subject to the satisfaction of certain conditions, including, among other things, the availability of certain current public information about the issuer, the sale being through a broker in an unsolicited “broker’s transaction” and the amount of securities being sold during any three (3) month period not exceeding specified limitations. Purchaser is aware that Rule 144 of the SEC under the Securities Act currently is not available to exempt the sale of the Shares from the registration requirements of the Securities Act. Purchaser further represents that Purchaser understands that, at the time Purchaser desires to sell the Shares, there may be no public market in which to make such a sale and that, even if such a public market exists for the Company’s Common Stock, the Company may not be satisfying the current public information requirement of Rule 144 or other conditions under Rule 144 that are required of the Company. If so, Purchaser understands that Purchaser will be precluded from selling the Shares under Rule 144.

 

4.           Purchaser’s Additional Representations and Warranties. In addition to Purchaser’s representations and warranties set forth in Section 3, Purchaser represents and warrants to the Company the following:

 

(a)                      Purchaser has the full power, authority and legal right to execute and deliver this Agreement (and all agreements and documents executed and delivered by Purchaser in connection herewith) and to perform all of Purchaser’s obligations hereunder (and under all other agreements and documents executed and delivered by Purchaser in connection herewith) and to consummate the transactions contemplated by this Agreement (and by all agreements and documents executed and delivered by Purchaser in connection herewith). Purchaser has duly executed and delivered this Agreement (and all agreements and documents executed and delivered by Purchaser in connection herewith). This Agreement (and each agreement and document executed and delivered by Purchaser in connection herewith), assuming its (and their) due authorization, execution and delivery by the Company (as required), constitutes Purchaser’s legal, valid and binding obligation, enforceable against Purchaser in accordance with its (and their) terms.

 

(b)                      Purchaser has good and transferable title to the Contributed LLC Membership Interests, and as of the date of the closing of the transactions contemplated hereby, the Contributed LLC Membership Interests shall be free and clear of any lien, claim or encumbrance.

 

  

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(c)                      Neither the execution and delivery of this Agreement nor the fulfillment of or compliance with the terms and conditions of this Agreement by Purchaser will (i) conflict with or result in a breach of any of the terms, conditions or provisions of any agreement, contract, loan, understanding or instrument to which Purchaser is now a party or by which Purchaser (or any of Purchaser’s properties) is or may be bound, or constitute a default or result in an acceleration of indebtedness under any of the foregoing; (ii) conflict with or result in a breach of any law, rule or regulation; (iii) result in the violation of any order, judgment or decree to which Purchaser (or any of Purchaser’s properties) is subject; or (iv) result in the creation or imposition of any lien, charge or encumbrance on any of Purchaser’s properties pursuant to the terms of any mortgage, deed of trust, contract or other instrument.

 

(d)                      No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction or regulatory authority over Purchaser (or any of Purchaser’s properties) or any other person or entity is required for (i) Purchaser’s execution and delivery of this Agreement (and each agreement and document executed and delivered by Purchaser in connection herewith) or (ii) the consummation by Purchaser of the transactions contemplated by this Agreement (and each agreement and document executed and delivered by Purchaser in connection herewith). No consent, approval or authorization of, or declaration or filing with, any governmental authority is required to be obtained or made by Purchaser for the valid execution, delivery and performance of this Agreement and Purchaser’s investment in the Shares.

 

(e)                      There are no actions or suits pending or, to Purchaser’s knowledge, threatened against Purchaser, which, if decided adversely to Purchaser, would have a material adverse effect on Purchaser’s ability to perform Purchaser’s obligations under this Agreement or to consummate the transactions contemplated hereby.

 

5.           Stock Certificate Legends. The stock certificate evidencing the Shares issued hereunder shall be endorsed with the following (or substantially similar) legends:

 

(a)                      THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.

 

(b)                      THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

 

  

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6.           Market Stand-Off Agreement. Purchaser hereby agrees, to the extent requested by the managing underwriters in a public offering of the Company’s capital stock, that, without the prior written consent of such managing underwriters, Purchaser shall not offer, sell, contract to sell, grant any option to purchase, make any short sale or otherwise dispose of or make a distribution of any capital stock of the Company held by or on behalf of Purchaser or beneficially owned by Purchaser in accordance with the rules and regulations of the SEC for a period of up to one hundred eighty (180) days after the date of the final prospectus relating to the Company’s initial public offering.

 

7.           Adjustment for Stock Splits. All references to the number of Shares in this Agreement shall be appropriately adjusted to reflect any stock split, reverse stock split or stock dividend or other similar change in the Shares that may be made by the Company after the date of this Agreement.

 

8.           Transfer Taxes. All transfer, excise, documentary, sales, use, stamp, registration and other such taxes and fees (if any) (including penalties and interest) incurred by reason of the transfer to the Company of Purchaser’s right, title and interest in and to the Contributed LLC Membership Interests pursuant to this Agreement (“Transfer Taxes”) shall be paid by the Company when due, and the Company shall, at its own expense, file all necessary tax returns and other documentation with respect to all Transfer Taxes, and, if required by applicable law, Purchaser shall join in the execution of any of such tax returns and other documentation.

 

9.           Tax Consequences. Purchaser has reviewed with Purchaser’s own tax advisers the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Purchaser is relying solely on such advisers and not on any statement or representation of the Company or any of its agents. Purchaser understands that Purchaser (and not the Company) shall be responsible for Purchaser’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

10.           Tax Character of Transactions. Without limiting the application or effect of the terms and provisions of Section 9, the Company and Purchaser agree that Purchaser’s purchase of the Shares, Purchaser’s Contribution and the Company’s issuance of the Shares in accordance with the terms of this Agreement are intended to qualify under Section 351 and related provisions of the Internal Revenue Code of 1986, as amended, and similar state and local income tax provisions. The Company and Purchaser further agree that each of them shall report (as required) all such transactions in a manner consistent with such qualification.

 

11.           Cooperation on Tax Matters. The Company and Purchaser shall cooperate fully, as and to the extent reasonably requested by the other party hereto, in connection with any audit, litigation or other proceeding with respect to taxes. Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information that are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided pursuant to this Section.

 

12.           General Provisions.

 

(a)                      This Agreement shall be governed by the laws of the State of Nevada, as such laws are applied to contracts entered into and performed in such State. This Agreement represents the entire agreement between the parties with respect to the purchase of the Shares by Purchaser and Purchaser’s Contribution and may be modified or amended only in a writing signed by both parties.

 

  

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(b)                      Any notice, demand or request required or permitted to be given by either the Company or Purchaser pursuant to the terms of this Agreement shall be in writing and shall be deemed given when delivered personally or deposited in the U.S. mail, First Class with postage prepaid, and addressed to the parties at the addresses of the parties set forth at the end of this Agreement or such other address as a party may request by notifying the other in writing.

 

(c)                      The rights and benefits of the Company under this Agreement shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by the Company’s successors and assigns. The rights and obligations of Purchaser under this Agreement may be assigned only with the prior written consent of the Company, and any purported transfer otherwise shall be null and void.

 

(d)                      Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision and shall not prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted to both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to such party under the circumstances.

 

(e)                      Purchaser agrees upon request to execute all further documents or instruments necessary or desirable to carry out the purposes or intent of this Agreement.

 

(f)                      All representations, warranties and agreements of Purchaser contained in this Agreement shall survive the consummation of the transactions contemplated hereby.

 

(g)                      If any dispute arises between the parties hereto with respect to the matters covered by this Agreement that leads to a proceeding to resolve such dispute, then the prevailing party in such proceeding shall be entitled to receive from the other party such prevailing party’s reasonable attorneys’ fees, expert witness fees and out-of-pocket costs incurred in connection with such proceeding in addition to any other relief that may be awarded to such prevailing party.

 

(h)                      Neither this Agreement nor any uncertainty or ambiguity herein will be construed against any party hereto. The parties hereto hereby expressly waive the application of any law, regulation, holding or ruling of construction providing that ambiguities in an agreement or other document shall be construed against the party drafting such agreement or document. All references in this Agreement to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement unless otherwise expressly specified. Unless otherwise expressly provided in this Agreement, the word “including” wherever it appears in this Agreement does not and shall not limit the words or terms preceding such word.

 

  

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(i)                      If one or more provisions of this Agreement are held to be unenforceable under applicable law, then such provision shall be excluded from this Agreement, and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

(j)                      This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

(k)                      The provisions of this Agreement shall inure to the benefit of and be binding on the Company and its successors and assigns and Purchaser and Purchaser’s legal representatives, heirs, legatees, distributees, permitted assigns and transferees by operation of law, whether or not any such person has become a party to this Agreement and has agreed in writing to join herein and be bound by the terms and conditions hereof.

 

(l)                      Purchaser represents, warrants and acknowledges that Purchaser has read carefully this Agreement and understands all of its terms and that Purchaser voluntarily is executing and delivering this Agreement. Purchaser further represents, warrants and acknowledges that the Company’s legal counsel is not legal counsel to Purchaser and has not advised Purchaser in any way in connection with or regarding this Agreement. Purchaser further represents, warrants and acknowledges that Purchaser has been given and had the opportunity to be represented by independent legal counsel in connection with this Agreement and the transactions contemplated hereby and has consulted with such legal counsel or has waived Purchaser’s right to do so.

 

[Signature Page Follows]

 

  

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

 

 

	 	The “Company”:  	 “Purchaser”:
	 	 	 
	 	808 Renewable Energy Corporation,	 
	 	
a Nevada corporation

	 
	 	 	 
	 	By: /s/Pascal Lorthioir	/s/Patrick S. Carter
	 	Pascal Lorthioir,  	Patrick S. Carter
	 	CEO	 
	 	 	 
	 	Address: 	Address:
	 	5011 Argosy Avenue, Suite 4 	Purchaser’s address on file
	 	Huntington Beach, CA 92649	with the Company
	 	 	 

 

 

                                                                         

[SIGNATURE PAGE TO STOCK PURCHASE AND MEMBERSHIP INTEREST CONTRIBUTION AGREEMENT]

 

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]