Document:

exhibit1012-consultingagreem.htm - Generated by SEC Publisher for SEC Filing

 

CONSULTING AGREEMENT

This Consulting Agreement (the "Agreement") is
entered into as of this 28th day of January, 2011 (the
"Effective Date"), by and between Parallax Diagnostics, Inc. a Nevada corporation with offices at 1327 Ocean
Avenue suite M, Santa Monica, California 90401 (or the "Company")
and Ricky Richardson at P.O. Box 939 Mahwah, New Jersey 07430
("Consultant") (together the "Parties").

WHEREAS, Consultant possesses certain skills and
expertise; 

WHEREAS, Company wishes to retain the services of
Consultant on the terms and conditions set forth below, and 

WHEREAS, Consultant is willing to provide services
to the Company, on the terms and conditions set forth below, 

NOW, THEREFORE, the parties agree as follows:

1.                 
Services.  Consultant will perform the services set forth on
Exhibit A, or as amended by mutual written agreement.  It is agreed and
understood that the nature and manner of services provided hereunder shall be
within Consultant’s area of professional expertise and/or historical
experience.

(a)               
Direction.  Consultant shall be directed by and shall report to Michael
Redmond or his successor.

(b)              
Start Date.  Consultant's consulting obligations to Company shall
begin on January 28, 2011

(c)               
Term.  This Agreement shall commence on the Start Date and,
unless earlier terminated in accordance with Section 15, shall continue up to
and including July 28, 2012 (the "Term").  The Term can be
automatically extended in three month increments upon mutual agreement by the
Parties. Any extension shall be in writing.

2.                 
Method of Performance.  The Consultant shall determine the
method, details, and means of performing and fulfilling his or her duties
hereunder.

3.                 
Other Employment.  The Company acknowledges and agrees that
Consultant may assume other commitments, and has ongoing or intends to obtain
engagements outside of Consultant's work for Company during the Term
("Other Engagements"); provided that Consultant fully complies with
the confidentiality obligations contained in Section 9.  Consultant shall reasonably
notify Company of any Other Engagements, which may pose a conflict of interest,
it being understood that such notice shall allow Company sufficient basis to
proceed in accordance with Section 15(b)(2), below.  

4.                 
Status as Independent Contractor; Nature of Relationship.  It
is agreed and understood that the Consultant is an independent contractor and
will not act as an agent nor shall he or she be deemed an employee of
Consultant for the purposes of any employee benefit
programs, income tax withholding, FICA taxes, unemployment benefits, and
worker’s compensation insurance, or otherwise.  Consultant shall not enter into
any agreement or incur any obligations on Company’s behalf, or commit Company
in any manner without Company’s prior written consent.

{00188304. }                                                             

 

 

 

5.                 
Resources.  Consultant shall provide such tools and
facilities as Consultant may deem necessary in the performance of Consultant's
duties hereunder.  Upon Consultant's reasonable request, the Company shall
provide such incidental resources to Consultant as the Company in its
discretion believes may be warranted.  

6.                 
Compensation.  It is agreed and understood, that subject to
the Term and performance and under Section 1, the Consultant shall be paid as
set forth in Exhibit A. Consultant shall be solely responsible for and agrees
that he or she will in a timely fashion pay all federal, state and other taxes
on the amounts set forth in this Section. Company will pay Consultant a fee of _________
to be paid to Consultant on a monthly basis.  The Consultant will receive, as
part of his compensation, one hundred and fifty thousand (150,000) options with
a twenty-five ($.25) cent strike price vesting quarterly over 18 months.  

7.                 
Expenses.   Consultant will be reimbursed for the reasonable
expenses Consultant incurs directly in connection with services provided under
this Agreement, following the submission of documentation evidencing and
confirming such expenses. 

8.                 
Compliance with all Laws.  Consultant agrees that in the
course of providing his services to the Company, he or she will not engage in
any practice or commit any acts in violation of any federal, state or local law
or ordinance.

9.                 
Non-Disclosure Obligations.

(a)               
Definition of "Information."  “Information” shall mean
materials, data, or information in any form, whether written, oral, digital, or
otherwise, provided by or obtained from Company, Company's agents, or Company's
contractors in connection with the Consultant's engagement by Company. 
Technical or business information of a third person furnished or disclosed to
the Consultant under this Agreement shall constitute Information of Company
unless otherwise specifically indicated in writing.

(b)              
Confidential Information.  For purposes of this Agreement, the term "Confidential
Information" shall mean Information regarding Company's business
including, but not limited to, Information regarding diagnostic and medical
device products,  processing and manufacturing capabilities, copyrighted or
patentable subject matter, research, development, innovations, inventions,
designs, technology, improvements, trade secrets, business affairs and
finances, customers, employees, operations, facilities, consumer markets,
products, capacities, systems, procedures, security practices, data formats,
and business methodologies.  

(c)               
Consultant's Obligations.  All
Confidential Information relating to or obtained from Company by the Consultant
shall be maintained in confidence by the Consultant, and the Consultant shall
use best efforts to protect and safeguard the Confidential
Information. 

 

 

(d)              
Use of Confidential Information.  Without Company's prior written
approval, the Consultant: (a) shall not use Confidential Information directly
or indirectly for any purpose except in connection with the services the
Consultant performs on behalf of Company; and (b) shall not disclose, sell,
assign, transfer, share or lease Confidential Information of Company, or make
such Confidential Information available to, or make it available for the use or
benefit of, any third party.

(e)               
Exceptions to Confidentiality Obligations. 
The obligations of this Agreement shall not apply to Confidential
Information which the Consultant shall demonstrate, by clear and convincing
evidence: 

1.                 
is or becomes publicly available (other than through unauthorized
disclosure under this Agreement); 

2.                 
is already known by the Consultant without an obligation of
confidentiality prior to the disclosure thereof by Company, as evidenced by the
Consultant's written records, maintained in the ordinary course, existing before
the first date of Consultant's engagement with Company; or 

3.                 
is rightfully received by the Consultant from a third party free of any
obligation of confidentiality.

10.             
Former Engagement Information.  The Consultant shall not,
during the Consultant's engagement with the Company, improperly use or disclose
any proprietary information or trade secrets of any former employer, hiring
party, or other person or entity with which the Consultant has an agreement or
duty to keep in confidence, if any, and shall not bring onto the premises of
the Company any unpublished document or proprietary information belonging to
any such employer, person or entity unless consented to in writing by such
employer, person, hiring party, or entity.

11.             
Court or Agency Order.  In the event the Consultant receives a subpoena or
order of a court or administrative body requesting disclosure of Company’s
Confidential Information, the Consultant agrees (a) that, as promptly as
possible after learning of such disclosure obligation and before making such
disclosure, the Consultant shall notify Company of such obligation to make such
disclosure, to allow Company an opportunity to object to such disclosure or to
obtain a protective order or other appropriate relief; (b) that the Consultant
shall provide such cooperation and assistance, at Company's expense, as Company
may reasonably request in any effort by Company to obtain such relief; and (c)
that the Consultant shall take all appropriate steps to limit the amount and
scope of Confidential Information so disclosed and to protect its
confidentiality.

12.             
Non-Solicitation.  The Consultant agrees not to solicit or
encourage employees of Consultant to work for a Competitor during the Term, and
for a period of one year after expiration of the Term. "Competitor"
means any person or organization, including the Consultant him or herself,
engaged in, or about to become engaged in, research on or the acquisition,
development, production, distribution, marketing or providing of a Competing Product.  "Competing Product" means
any product, process, or service of any person or organization other than the
Company, in existence or under development, which both (A) is identical to,
substantially the same as, or an adequate substitute for any product, process,
or service of the Company, in existence or under development, on which the
Consultant works during the Term or about which the Consultant acquires
Confidential Information, and (B) is (or could reasonably be anticipated to be)
marketed or distributed in such a manner and in such a geographic area as to
actually compete with such product, process or service of the Company.

 

 

13.             
Inventions.  For purposes of this Agreement, the term
"Inventions" shall mean any and all inventions, original works of
authorship, developments, concepts, improvements, or trade secrets (whether or
not patentable or registrable under copyright or similar laws) which relate to
the business of the Company and which the Consultant either (i) solely or
jointly conceives, develops, or reduces to practice during Company time, at the
Company's direction, or using Company equipment or resources; or (ii) solely or
jointly conceives, develops, or reduces to practice based on Company
Confidential Information.  The Consultant will promptly make full written
disclosure of Inventions to the Company and will hold such Inventions in trust
for the sole right and benefit of the Company.  The Consultant hereby assigns
to the Company all the Consultant's right, title and interest in and to
Inventions.  Without limiting the foregoing, the Consultant further
acknowledges that all Inventions (x) which are original works of authorship;
(y) which are made by the Consultant (solely or jointly with others) within the
scope of the Consultant's engagement hereunder; and (z) which are protectable
by copyright, shall be deemed, to the extent applicable, “works made for hire,”
as that term is defined in the United States Copyright Act.  It is agreed and
understood that Consultant inventions, original works of authorship, developments,
concepts, improvements, or trade secrets (whether or not patentable or
registrable under copyright or similar laws) which do not qualify as
"Inventions" hereunder shall not be subject to this Section 13.  

14.             
Patent and Copyright Registration.  The Consultant agrees to
assist the Company, or its designee, at the Company’s expense, in every
reasonable way to secure the Company’s rights in the Inventions and any
copyrights, patents, mask work rights or other intellectual property rights
relating thereto in any and all countries, including the disclosure to the
Company of all pertinent information and data with respect thereto and the
execution of all applications, specifications, oaths, assignments and all other
instruments which the Company shall deem necessary in order to apply for and
obtain such rights and in order to assign and convey to the Company, its
successors, assigns and nominees the sole and exclusive rights, title and
interest in and to such Inventions, and any copyrights, patents, mask work rights
or other intellectual property rights relating thereto.

15.             
Termination.  This Agreement may be terminated without
liability as follows:

(a)               
For Cause.  If either Party is in material breach, the
non-breaching party may terminate this Agreement upon providing the breaching
party (a) with written notice, specifying the breach, and (b) with a ten (10)
day opportunity to cure, commencing upon the effective date of such notice.

 

 

 

16.             
Survival.  The following provisions shall survive the
expiration or termination of this Agreement:  Sections the applicable part of 6
(success fee) 9, 11, 12, 14, and 17. 

17.             
Return of Property.  Consultant expressly agrees that upon
completion of his or her consulting services under this Agreement, or at any
time prior to that time upon request of the Company, Consultant will return to
the Company all property of the Company obtained or received by Consultant
during the Term of this Agreement including, but not limited to, any and all
files, computers, computer equipment, software, diskettes or other storage
media, documents, papers, records, notes, agenda, memoranda, plans, calendars
and other books and records of any kind and nature whatsoever containing
information concerning the Company or its customers or operations.  

18.             
No Oral Modification.  This Agreement may not be changed
orally, and no modification, amendment, or waiver of any provision contained in
this Agreement, or any future representation, promise, or condition in
connection with the subject matter of this Agreement shall be binding upon any
party hereto, unless made in writing and signed by such party.

19.             
Entire Agreement.  This Agreement contains the entire
agreement between the Parties and supersedes any and all previous agreements of
any kind whatsoever between them, whether written or oral, and all prior and
contemporaneous discussions and negotiations have been and are merged and
integrated into, and are superseded by, this Agreement.  This is an integrated
document.

20.             
Severability.  In the event that any provision of this
Agreement or the application thereof should be held to be void, voidable,
unlawful or, for any reason, unenforceable, the remaining portion and
application shall remain in full force and effect, and to that end the
provisions of this Agreement are declared to be severable.

21.             
Governing Law.  This Agreement is made and entered into, and
shall be subject to, governed by, and interpreted in accordance with the laws
of the Commonwealth of Massachusetts and shall be fully enforceable in the
courts of that state, without regard to principles of conflict of laws.  The
Parties (i) agree that any suit, action or other legal proceeding arising
out of this Agreement may be brought in the United States District Court for
the District of Massachusetts, or if such court does not have jurisdiction or
will not accept jurisdiction, in any court of general jurisdiction in Suffolk
County, Massachusetts; (ii) consent to the jurisdiction of any such court;
and (iii) waive any objection which they may have to the laying of venue in
any such court.  The Parties also consent to the service of process, pleadings,
notices or other papers by regular mail, addressed to the party to be served,
postage prepaid, and registered or certified with return receipt requested.

22.             
Notices.  All notices, requests, consents, approvals and
other communications required or permitted under this Agreement
("Notices") shall be in writing and shall be delivered to the
addresses listed above, by mail, by hand, or by facsimile transmission, unless
otherwise provided in this Agreement.  Such Notices shall be effective (i) if
sent by mail, three business days after mailing; (ii) if sent by hand, on the
date of delivery; and (iii) if sent by facsimile, on
the date indicated on the facsimile confirmation.  Any party may change its
address or facsimile number for notification purposes by giving all of the
individuals and entities noted above notice, in accordance with the notice
provisions set forth in this Section, of the new address or facsimile number
and the date upon which it will become effective.

 

 

23.             
No Assignment.  Neither this Agreement nor any portion hereof
is assignable.  

24.             
Counterparts.  This Agreement may be executed in
counterparts, and each counterpart, when executed, shall have the effect of a
signed original.

IN WITNESS WHEREOF, the Parties hereto have caused
this Agreement to be executed by the undersigned duly authorized persons as of
the day and year above stated.

Parallax Diagnostics, Inc.

 

 

By: /s/ Michael Redmond

Name: Michael Redmond

Title:   CEO

 

 

 

CONSULTANT

 

 

/s/ Ricky Richardson

Ricky Richardson

 

 

EXHIBIT “A”

 

CONSULTANT SERVICES 

AND 

PAYMENT SCHEDULE

 

 

 

 

 

 

 

PAYMENT SHEDULE

 

1.         Monthly
Cash Compensation.      The Consultant shall receive $______per month for (X)
days of services per month.  Payment shall be made on the fifth (5th)
of each month for a period of eighteen (18) months.

 

2.         Stock
Compensation.         The Consultant shall receive Options to purchase common
shares of the Company as part of the Company’s Employee Stock Option Plan.  The
Consultant shall receive a total of one hundred and fifty thousand (150,000)
options with a strike price of twenty-five ($.25) cents per share.  The options
will vest quarterly over a period of eighteen (18) months.exhibit1013-stockoptionagree.htm - Generated by SEC Publisher for SEC Filing

 

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”)
is made and entered into by and between Parallax Diagnostics, Inc., (the
“Company”), and Ricky Richardson (the “Participant”), as of the effective date
of this Agreement specified on Schedule I hereof (the “Date of Grant”),
pursuant to the Parallax Diagnostics, Inc. 2010 Stock Option Plan adopted
effective October 2010 (as the same may have been or hereafter be amended from
time to time, the “Plan”).  Terms used herein with their initial letters
capitalized that are defined in the Plan shall have the meaning given them in
the Plan unless otherwise defined herein or the context hereof otherwise
requires.

RECITALS:

A.               
The Company has adopted the Plan to strengthen the ability of the
Company to encourage ownership of the Company by certain employees of the
Company and its Subsidiaries, to provide additional incentive for them to
remain in the employ of the Company and its Subsidiaries, and to promote the
growth and success of the Company and its Subsidiaries.

B.                
The Committee that administers the Plan believes that the granting of
the stock option herein described to Participant is consistent with the stated
purposes for which the Plan was adopted.

NOW, THEREFORE, in consideration of the mutual
covenants and conditions hereinafter set forth and for other good and valuable
consideration, the Company and Participant agree as follows:

AGREEMENTS:

1.                 
Plan Controls.  The terms of this Agreement are governed by the
terms of the Plan.  Participant hereby acknowledges receipt of a copy of the
Plan, as amended through the date hereof.  The Company hereby agrees to furnish
to Participant a copy of the Plan, as amended through the date of request
therefore, without charge, on request to the Company at the address to which
notices are to be sent to the Company.  In the case of any inconsistency
between the terms of this Agreement and the terms of the Plan, the terms of the
Plan shall govern.

2.                 
Grant of Option.  The Company hereby grants to Participant the
right and option (the “Option”) to purchase an aggregate number of shares set
forth on Schedule I hereof beside the caption “Number of Optioned Shares” (such
number being subject to adjustment as provided in Section 9.6 of the Plan) of
the Common Stock of the Company (the “Optioned Shares”) on the terms and
conditions herein set forth.  If designated on Schedule I hereof as an
Incentive Stock Option, this Option is intended to qualify as an Incentive
Stock Option as defined in Section 422 of the Code, and this Agreement shall be
interpreted accordingly.  By execution of this Agreement, the Participant
accepts the grant of the Option.

3.                 
Exercise Price.  The price at which Participant shall be entitled
to purchase the Optioned Shares shall be the dollar amount per share set forth
on Schedule I hereof beside the caption “Exercise Price” (such exercise price
being subject to adjustment as provided in Section 9.6 of the Plan).  The
exercise price shall be paid with (a) cash (including check, bank draft, or money order); (b) if the use of shares of Common Stock is
permitted according to Schedule I hereof or otherwise permitted by the
Committee in writing, shares of Common Stock owned by Participant; or (c) any
combination of the foregoing.

{00188305. }                                  B-1

 

 

4.                 
Option Period.  The Option hereby granted shall be and remain in
force and effect during the “Option Period.” The Option Period begins on the
Date of Grant and terminates on the date that is ten years after the Date of
Grant (or, if a different date is shown on Schedule I hereof beside the caption
“Termination Date”, such date); subject, however to earlier termination as
provided by the provisions of Article VII of the Plan and this Agreement (it
being understood that this Agreement contains no express provision that would
provide any of the greater or lesser rights that Article VII of the Plan permits to be provided in an Option Agreement except to the extent any variation
therefrom is specifically set forth in the language beside the caption “Greater
or Lesser Article VII Rights” on Schedule I hereof) (the date of any such
termination being called herein the “Expiration Date”).

5.                 
Vesting Schedule.  The Option may be exercised, in whole or in
part, from and after the following dates and prior to the Expiration Date. 
Except only as specifically provided elsewhere herein or in the Plan, this
Option shall be exercisable in the following cumulative installments:

Up to 25,000 of the Optioned Shares at any time
after the first ninety (90) days of the Date of Grant;

Up to an additional 25,000 of the Optioned
Shares on or after the second ninety (90) days of the Date of Grant;

Up to an additional 25,000 of the Optioned
Shares on or after the third ninety (90) days of the Date of Grant; and

Up to an additional 25,000 of the Optioned
Shares on or after the fourth ninety (90) days of the Date of Grant; and

Up to an additional 25,000 of the Optioned
Shares on or after the fifth ninety (90) days of the Date of Grant; and

Up to an additional 25,000 of the Optioned
Shares on or after the sixth ninety (90) days of the Date of Grant.

6.                 
Nontransferability of Options.  Transfers of the Option are
restricted as set forth in the Plan except to the extent, if any, transfers are
expressly permitted in the language appearing beside the caption “Expanded
Rights to Transfer Option” on Schedule I hereof.  The Participant agrees to
comply with such restrictions.

7.                 
Nontransferability of, and Right to Acquire, Shares.  Except to
the extent, if any, the language appearing beside the caption “Modifications to
Transfer/Repurchase Provisions” on Schedule I hereof modifies the provisions
thereof, the Stock Transfer/Repurchase Provisions, which are attached to the
Plan as Exhibit A, govern transfers of the Shares acquired upon exercise of the
Option and grant certain Persons the right to buy such Shares under certain circumstances.  The Participant agrees to comply with the
Stock Transfer/Repurchase Provisions (if and as modified).

{00188305. }                                  B-2

 

 

8.                 
Information Confidential.  As partial consideration for the
granting of the Option, the Participant agrees with the Company to keep
confidential all information and knowledge that the Participant has relating to
the manner and amount of the Participant’s participation in the Plan; provided,
however, that such information may be disclosed as required by law and may be
given in confidence to the Participant’s spouse, the Participant’s tax and
financial advisors, or financial institutions to the extent that such
information is necessary to secure a loan.

9.                 
Administration.  This Agreement is subject to the terms and
conditions of the Plan.  The Plan will be administered by the Committee in
accordance with its terms.  The Committee has sole and complete discretion with
respect to all matters reserved to it by the Plan and decisions of the
Committee with respect to the Plan and to this Agreement shall be final and
binding upon Participant and the Company.  In the event of any conflict between
the terms and conditions of this Agreement and the Plan, the provisions of the
Plan shall control.

10.             
Continuation of Employment.  This Agreement shall not be
construed to confer upon Participant any right to continue in the employ of the
Company or any of its Subsidiaries and shall not limit the right of the Company
or any of its Subsidiaries, in its sole discretion, to terminate the employment
of Participant at any time.

11.             
Notice.  All notices, requests, demands, and other communications
hereunder shall be in writing and shall be personally delivered, delivered by
facsimile or courier service, or mailed, certified with first class postage
prepaid to the address specified by the person who is to receive the same.

Each such notice, request, demand, or other
communication hereunder shall be deemed to have been given (whether actually
received or not) on the date of actual delivery thereof, if personally
delivered or delivered by facsimile transmission (if receipt is confirmed at
the time of such transmission by telephone or facsimile-machine-generated
confirmation), or on the third day following the date of mailing, if mailed in
accordance with this Paragraph, or on the day specified for delivery to the
courier service (if such day is one on which the courier service will give
normal assurances that such specified delivery will be made).  Any notice,
request, demand, or other communication given otherwise than in accordance with
this Paragraph shall be deemed to have been given on the date actually
received.  Either party to this Agreement may change its address for purposes
of this Paragraph by giving written notice of such change to the other party in
the manner herein above provided.  Any person entitled to any notice, request,
demand, or other communication hereunder may waive the notice, request, demand,
or other communication.  Until changed in accordance herewith, the Company and
Participant specify their respective addresses as those set forth below their
signatures at the end of this Agreement.

12.             
Paragraph Headings.  The Paragraph headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

{00188305. }                                  B-3

 

 

13.             
Governing Law and Venue.  THIS AGREEMENT SHALL AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA WITHOUT GIVING EFFECT TO ANY
CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEVADA OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE  OF NEVADA. EACH PARTY HEREBY IRREVOCABLY SUBMITS
TO THE PERSONAL JURISDICTION OF THE COURTS LOCATED IN THE STATE OF NEVADA AND AGREES THAT ANY LITIGATION BETWEEN THE PARTIES WILL BE FILED IN COURTS LOCATED
IN RENO, NEVADA.

14.             
Arbitration.  By execution hereof, the parties hereto expressly
agree that upon the request of any party, whether made before or after the
institution of any legal proceeding, any action, dispute, claim or controversy
of any kind, whether in contract or in tort, statutory or common law, legal or
equitable, arising between the parties in any way arising out of any of the
provisions contained in this Agreement shall be resolved by binding arbitration
administered by the American Arbitration Association (the “AAA”) and in Reno,
Nevada.  Such arbitration shall be conducted in accordance with the Commercial
Arbitration Rules of the AAA and, to the maximum extent applicable, the Federal
Arbitration Act (Title 9 of the United States Code) except as otherwise
specified herein.  Judgment upon the award rendered by the arbitrator may be
entered in any court having competent jurisdiction.  The arbitrator shall
resolve all disputes in accordance with the applicable substantive law.  A
single arbitrator shall be chosen and shall decide the dispute, unless the
amount sought in the dispute exceeds $100,000, in which case a panel of three
arbitrators shall decide the dispute.  In all arbitration proceedings in which
the amount of any award exceeds $100,000, in the aggregate, the arbitrator(s)
shall make specific, written findings of fact and conclusions of law.  In all
arbitration proceedings in which the amount of any award exceeds $100,000, in
the aggregate, the parties shall have, in addition to the limited statutory
right to seek a vacation or modification of an award pursuant to applicable
law, the right to vacation or modification of any award that is based, in whole
or in part, on an incorrect or erroneous ruling of law by appeal to an
appropriate court having jurisdiction; provided, however, that any such
application for a vacation or modification of such an award based on an
incorrect ruling of law must be filed in a court having jurisdiction over the
dispute within 15 days from the date the award is rendered.  The findings of
fact of the arbitrator(s) shall be binding on all parties and shall not be
subject to further review except as otherwise allowed by applicable law.  No
provision of this Agreement nor the exercise of any rights hereunder shall
limit the right of any party, and any party shall have the right during any
dispute, to seek, use, and employ ancillary or preliminary remedies, such as
injunctive relief (including, without limitation, specific performance), from a
court having jurisdiction before, during, or after the pendency of any
arbitration.  The institution and maintenance of any action for judicial relief
or pursuit of provisional or ancillary remedies shall not constitute a waiver
of the right of any party to submit any dispute to arbitration nor render
inapplicable the compulsory arbitration provisions hereof.

15.             
Attorney’s Fees.  If any action is brought to enforce or
interpret the terms of this Agreement (including through arbitration), the
prevailing party shall be entitled to reasonable attorneys’ fees, costs, and
necessary disbursements in addition to any other relief to which such party may
be entitled.

{00188305. }                                  B-4

 

 

16.             
Counterparts.  This Agreement may be executed in any number of
counterparts and shall be effective when each party hereto has executed at
least one counterpart, with the same effect as if all signing parties had signed
the same document.  All counterparts will be construed together and evidence
only one agreement, which, notwithstanding the actual date of execution of any
counterpart, shall be deemed to be dated the day and year first written above. 
In making proof of this Agreement, it shall not be necessary to account for a
counterpart executed by any party other than the party against whom enforcement
is sought or to account for more than one counterpart executed by the party
against whom enforcement is sought.

17.             
Execution by Facsimile.  The manual signature of any party hereto
that is transmitted to any other party by facsimile shall be deemed for all
purposes to be an original signature.

[THIS SPACE LEFT
BLANK INTENTIONALLY]

{00188305. }                                  B-5

 

 

Executed on the date or
dates indicated below, to be effective as of January 28, 2011.

 

                                                                        

 

By:                                                                  

Name:                                                              

Title:                                                                

 

Date: January 28, 2011

 

Address:                                                          

                                                                        

 

Participant:

                                                                        

Name:  Ricky Richardson

 

Date: January 28, 2011

 

Address:  P.
O. Box 939

                Mahwah,
New Jersey  07430

 

     

{00188305. }                                  B-6

 

 

SCHEDULE I

 

 

	
  DATE OF
  GRANT:

  	
  January 28,
  2011

  
	
  TYPE OF
  OPTION:

  	
  Incentive
  Stock Option           X

  
	
   

  	
  Nonqualified
  Stock Option                

  
	
  NUMBER OF
  OPTIONED SHARES:

  	
  150,000

  
	
  EXERCISE
  PRICE:

  	
  $ .25 

  
	
  TERMINATION
  DATE:

  	
  Fifth
  Anniversary of Date of Grant (Maximum term of 10 years; 5 years in the case
  of 10% shareholders)

  
	
  PERMISSION
  TO PAY WITH SHARES:

  	
               Granted          Denied
             

  
	
  EXPANDED
  RIGHTS TO TRANSFER OPTION:

  	
               Granted          Denied
             

  
	
  GREATER OR
  LESSER ARTICLE VII RIGHTS:

  	
  None

  

 

 

{00188305. }                                   I-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]