Document:

WWW.EXFILE.COM, INC. -- 13809 -- SCHNITZER STEEL INDUSTRIES, INC. -- EXHIBIT 10.1 TO FORM 8-K/A

EXHIBIT
10.1

August
31, 2005

Gregory
J. Witherspoon

1601 Blue
Jay Way

Los
Angeles, California 90069

Dear
Gregory:

It is
with great pleasure that we extend an offer to you to join Schnitzer Steel
Industries, Inc. (“SSI”) on a temporary basis as SSI’s interim Chief Financial
Officer. Your employment will commence on August 23, 2005 and end on or the day
immediately following the later to occur of (i) SSI’s filing of its Form 10-K
for the fiscal year ending August 31, 2005 and (ii) the commencement of
employment of a new Chief Financial Officer. It is expected that your tenure
with SSI will end on or about November 30, 2005, however, it is agreed
that your employment will continue until terminated as provided in the preceding
sentence. Your temporary employment will be subject to the following terms and
conditions:

1.  Salary
and Responsibilities. As
payment for full services rendered to SSI, you shall receive from SSI a salary
of $250,000 (“Salary”) payable in three (3) installments as follows: (i)
one-third of the Salary will be payable on or about September 22, 2005; (ii)
one-third of the Salary will be payable on or about October 22, 2005; and (iii)
one-third of the Salary will be payable on or about the later of November 30,
2005 or if sooner your last day of employment; provided, however, that if your
employment is terminated by SSI other than for “Cause,” you will receive any
portion of the $250,000 Salary which has not been paid to you as of the date of
your termination (less withholding for taxes and other proper deductions). You
will not receive any additional payments whatsoever unless your employment
extends beyond November 30, 2005 for which you will then be compensated at a
weekly rate of $20,000. If you resign or your temporary employment is terminated
by SSI for Cause at any time, you will only receive a prorated portion of the
Salary, if any, which has been earned prior to your resignation or termination
and you will not receive any additional payments whatsoever.

SSI will
provide you with notice of the date on which your temporary employment will end
at least two (2) weeks in advance of your last day of employment. Salary will be
subject to withholding for taxes and other proper deductions.

For
purposes hereof, “Cause” shall mean that SSI’s Board of Directors has
determined, in good faith, that: (i) you committed an act constituting a
misdemeanor involving moral turpitude, fraud or misrepresentation or a felony
under the laws of the United States or any state or political subdivision
thereof; (ii) you committed a material or reportable violation of laws, rules or
regulations applicable to SSI; (iii) you committed an act constituting a breach
of fiduciary duty, negligence, willful misconduct or willful insubordination;
(iv) you engaged in conduct that violated SSI’s internal policies or procedures
and which is detrimental to the business, reputation, character or standing of
SSI or any of its affiliates; (v) you committed an act 

 

 

of fraud,
dishonesty or misrepresentation that is detrimental to the business, reputation,
character or standing of SSI or any of its affiliates; (vi) you engaged in a
conflict of interest or self-dealing; or (vii) after notice by SSI and a
reasonable opportunity to cure, you materially breached your obligations as set
forth in this agreement or you failed to perform your duties as a temporary
employee of SSI (including as a result of your death or permanent disability
whereby you are unable to perform the essential functions of your job for thirty
(30) days).

During
your tenure as interim Chief Financial Officer, you shall devote such time as is
appropriate to perform the duties of a chief financial officer of a public
company, together with such duties as may be designated by SSI’s Chief Executive
Officer from time to time. Such duties to be performed by you shall include, but
not be limited to, the oversight of the preparation of, and the execution of,
SSI’s Form 10-K for the fiscal year ending August 31, 2005 and all amendments
thereto and other related filings and certifications required in connection
therewith or otherwise required pursuant to the United States securities laws.
You acknowledge and agree that the execution of these documents is an integral
part of your responsibilities and you agree to execute such documents assuming
that they are as usual prepared in the normal course of business and appropriate
form, regardless of whether SSI has hired a permanent Chief Financial Officer
prior to the filing of the Form 10-K (it being acknowledged that it is the
intention of SSI that such successor shall not be formally designated as the
Chief Financial Officer until subsequent to the filing of the Form 10-K). You
will not be required to execute a document or certification referred to in the
preceding sentence if you determine, in your reasonable professional judgment,
that the provisions thereof are inaccurate; provided that in such event you
shall immediately advise SSI’s Chief Executive Officer of the reason for your
determination. You further agree that if SSI is able to cure such defect, you
will execute the disputed document.

2.  Expense
Reimbursement. SSI
shall reimburse you for all reasonable and pre-approved business-related
expenses in accordance with SSI policy. Pre-approved expenses include roundtrip
airfare from Los Angeles to Portland, as well as meals while in
Portland.

3.  Temporary
Housing/Automobile. SSI
will provide you with reasonable temporary housing accommodations and the use of
an automobile for the duration of your temporary employment.

4.  No
Fringe Benefits. During
your temporary employment, you will not be eligible to participate in, or
entitled to, any of SSI’s employee benefit plans, group insurance, executive
medical coverage, Supplemental Executive Retirement Benefit Bonus Plan and/or
such other benefits as SSI from time to time may generally provide to its
employees or its most senior officers. Notwithstanding the foregoing, you will
otherwise be covered under Workers Compensation and Directors & Officers
liability coverage.

5.  Confidentiality. You
agree to keep in confidence and, except as specifically authorized in writing by
SSI, not disclose to or use for the benefit of any third party any confidential
or proprietary information about SSI (or its parents, subsidiaries, affiliates
or related entities) that you may acquire, develop or create by reason of your
temporary employment, 

 

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except
for information that is or becomes public other than through your breach of this
paragraph and as otherwise provided by law inclusive of court order or subpoena
(subject to the provisions of the following sentence). In the event that you
receive a request or are required to disclose any confidential information
pursuant to the terms of a valid and effective subpoena or order issued by a
court of competent jurisdiction or a federal, state or local governmental or
regulatory body or pursuant to a civil investigative demand or similar judicial
process, you agree to (i) immediately notify SSI of the existence, terms and
circumstances surrounding such a request or requirement, (ii) consult with SSI
on the advisability of taking legally available steps to resist or narrow such
request or requirement, and (iii) if disclosure of such information is required,
disclose any such information which you are advised by legal counsel is legally
required to be disclosed and will exercise your best efforts to obtain an order
or other reliable assurance that confidential treatment will be accorded to such
information. Upon termination of your employment for any reason, you also agree
to return promptly to SSI all of its property and records (and all copies
thereof) in your possession, custody or control, including all confidential and
proprietary information, in any form or media. Such property and records
include, but are not limited to, all SSI documents, manuals, records, software,
computers and other hardware, credit cards, building passes and keys and all
other documents relating or referring to SSI’s business, customers, employees or
suppliers (other than those consisting solely of your own payroll
information).

6.  Intellectual
Property. You
agree that all intellectual property rights associated with or embodied in whole
or in part in any software, ideas, trade secrets, concepts, techniques,
inventions, processes, methods of doing business or works of authorship,
developed, made or created by you during your temporary employment related,
whether directly or indirectly, to the business of SSI, and any and all patents,
applications therefore, copyright applications or registrations, trademark
applications or registrations associated therewith, will be exclusively owned by
SSI and, if copyrightable subject matter, will be considered work made for hire
within the meaning of the Copyright Act (17 U.S.C. Š 101 et seq.) (“Intellectual
Property”). All Intellectual Property will be and remain the exclusive property
of SSI. Regardless of whether the Intellectual Property is deemed “work made for
hire” under the Copyright Act, you hereby grant, transfer, assign, convey and
relinquish, and agree to grant, transfer, assign, convey and relinquish from
time to time, on an exclusive basis, all of your right, title and interest in
and to the Intellectual Property, including all copyright in and thereto, to SSI
in perpetuity or for the longest period otherwise permitted by law. Consistent
with your recognition of SSI’s absolute ownership of all Intellectual Property,
you agree that you will (i) keep such Intellectual Property confidential as
appropriate and not use any Intellectual Property for the benefit of any party
other than SSI, and (ii) perform such acts and execute such documents and
instruments as SSI may now or hereafter deem reasonably necessary or desirable
to evidence the transfer of absolute ownership of all Intellectual Property to
SSI; provided, however, if following 10 day’s written notice from SSI, you
refuse, or are unable, due to disability, incapacity or death, to execute such
documents relating to the Intellectual Property, you hereby appoint any of SSI’s
officers as your attorney-in-fact to execute such documents on your behalf. This
agency is coupled with an interest and is irrevocable without SSI’s prior
written consent.

 

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7.  Restrictive
Covenants. You
agree that beginning on the date that you sign this agreement and continuing
through 12 months after the last date of your temporary employment, you will not
(i) engage in any business (whether as an employee, consultant, director or
partner) that is in direct competition with any active or planned business of
SSI, or (ii) directly or indirectly solicit or induce, or cause others to
solicit or induce, any person who is employed by SSI (or its parents,
subsidiaries, affiliates or related entities) to terminate his or her employment
with SSI (or its parents, subsidiaries, affiliates or related entities) or to
accept employment with anyone or any entity other than SSI (or its parents,
subsidiaries, affiliates or related entities).

This will
also confirm that you will serve as the interim Chief Financial Officer of SSI
at the pleasure of the Board of Directors, and that your employment is at will
and may be terminated at any time, for any reason or no reason, upon notice by
either SSI or you.

Please
sign in the space below to indicate your agreement with the above
terms.

 

	 	 	 
	 	
      Very
      truly yours, 

	 	 
	 	SCHNITZER
      STEEL INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ John
      D. Carter
	 	
      

      John D. Carter
	 	President
      and Chief Executive Officer

 

ACCEPTED
AND AGREED TO:

/s/Gregory
Witherspoon 

Gregory
Witherspoon

 

 

-4-EXHIBIT 10.50 - STOCK PURCHASE AGREEMENT - BILL GLASER

Exhibit 10.50

HEALTH SCIENCES GROUP, INC.

FORM OF

STOCK PURCHASE AGREEMENT

This AGREEMENT is made effective as of the 15th day of July, 2005 (the "Sale Date"), by and between HEALTH SCIENCES GROUP, INC.., a corporation (the "Company"), and Bill Glaser (the "Stock Purchaser").

 RECITALS

WHEREAS, the Board of Directors of the Company has established the 2005 Stock Option Deferred Stock and Restricted Stock Plan (the "Plan" unless otherwise specified); and

WHEREAS, pursuant to the provisions of said Plan, the Board of Directors of the Company, by action duly taken on July 15, 2005, sold to the Stock Purchaser shares of the Common Stock of the Company (the "Common Stock"), subject to the Plan, on the terms and conditions set forth herein.

 AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants set forth herein and other good and valuable consideration, the parties hereto agree as follows:

1.  Price.  The Stock Purchaser hereby purchases an aggregate of 260,274 shares of Common Stock at the price of $0.73 per share (the "Price"), on the terms and conditions set forth herein.  Upon execution hereof, the Stock Purchaser shall pay to the Company the Price per share for the shares purchased hereby agreeing to perform services, as directed by the Board of Directors, for eh period July 1, 2005 to June 30, 2006, at an annual salary of $190,000, payable by the issuance of the 260,274 shares in lieu of cash for such services.

2.  Vesting.  The shares purchased hereby shall be vested as follows: if Stock Purchaser should no longer be performing services to the Company during the period July 1, 2005 to June 30, 2006, such person shall return for cancellation that number of the shares granted herein (or replacement shares, or the $0.73 cash value of such shares) as equals the percentage that the reciprocal of the percentage of days of services rendered by such person bears to 360.  To illustrate:  if the services rendered was 36 days, which is 10% of 360 days, the reciprocal percentage would be 90%, in which case, such person, as an example,  only worked for 36 days pursuant to the above grant of 260,247 shares, he would re required to refund for cancellation 234,247 shares, amounting to 90% of 260,274 shares.

3.  Governing Plan.  This Agreement hereby incorporates by reference the Plan and all of the terms and conditions of the Plan as heretofore amended and as the same may be amended from time to time hereafter in accordance with the terms thereof, but no such subsequent 

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amendment shall adversely affect the Stock Purchaser's rights under this Agreement and the Plan except as may be required by applicable law.  The Stock Purchaser expressly acknowledges and agrees that the pro­visions of this Agreement are subject to the Plan; the terms of this Agreement shall in no manner limit or modify the controlling provisions of the Plan, and in case of any conflict between the provisions of the Plan and this Agree­ment, the provisions of the Plan shall be con­trolling and binding upon the parties hereto unless the conflict can be resolved within the spirit of this Agreement.  The Stock Purchaser also hereby expressly acknowledges, represents and agrees as follows:

(a)  Acknowledges receipt of a copy of the Plan, a copy of which is attached hereto and by reference incorporated herein, and represents that he is familiar with the terms and provisions of said Plan, and hereby accepts this Agreement Subject to all the terms and provisions of said Plan.

(b)  Agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors (or the Committee, if so authorized) upon any questions arising under the Plan.

(c)  Acknowledges that he is familiar with all Sections of the Plan including the provisions regarding Termina­tion of Employment.

(d)  Acknowledges, understands and agrees that the existence of the Plan and the execution of this Agreement are not sufficient by themselves to cause any purchase of stock under Plan to qualify for favorable tax treatment.

4.  Representations and Warranties.  The Stock Pur­chaser hereby makes a representation and warranty that the shares are being acquired only for investment and without any present intention to sell or distribute such shares.  An appropriate legend restricting transferability of the shares, as may be required by the Securities Act of 1933, may be placed by the Company on the certificates representing the shares, unless the shares are registered under Form S-8.

5.  Shares/Transferable.  The shares are transferable, however as to that portion which has not vested, if Stock Purchaser is required pursuant to paragraph 2 to return the unvested shares for cancellation, Stock Purchaser shall refund the $0.73 per share or purchase such shares in the open market to satisfy the obligation to return the unvested shares for cancellation.

6.  No Enlargement of Employee Rights.  Nothing in this Agreement shall be construed to confer upon the Stock Purchaser (if an employee) any right to continued employment with the Company (or an Affiliated Company), or to restrict in any way the right of the Company (or an Affiliated Company if he is an employee thereof) to terminate his employment.  Stock Purchaser acknowledges that in the absence of an express written employment agreement to the contrary, Stock Purchaser's employment with the Company may be terminated by the Company at any time, with or without cause.

7.  Withholding of Taxes.  Stock Purchaser authorizes the Company to withhold, in accordance with any applicable law, from any compensation payable to him any taxes required to be withheld by federal, provincial or local law as a result of the issuance of stock pursuant to this Agreement.  The Stock Purchaser acknowledges that it his own responsibility to file an 83(b) election with the Internal Revenue Service (if he is a U.S. resident) concerning this 

2

transaction or such other forms as may be applicable in his home jurisdiction.  The Stock Purchaser shall contact his own personal accountant and provide the necessary information to the Stock Purchaser's accountant to permit the accountant to fill out and file on his behalf an 83(b) election form (if applicable or such other form as is required) which must be filed within 30 days from the date hereof.  Failure to file such form timely may result in adverse tax consequences to the Stock Purchaser.  Stock Purchaser acknowledges that it is not the Company's responsibility to provide him with tax advise or assistance, financial or otherwise in connection with the preparation, filling out and filing of the 83(b) election or any other election under his home jurisdiction.

8.  Laws Applicable to Construction.  This Agreement shall be construed and enforced in accordance with the laws of California.

9.  Agreement Binding on Successors.  The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors, transferees and assignees of the Stock Purchaser.

    10.  Necessary Acts.  The Stock Purchaser agrees to perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement, including but not limited to all acts and documents related to compliance with federal and/or state securities laws.

    11.  Counterparts.  For convenience this Agreement may be executed in any number of identical counterparts, each of which shall be deemed a complete original in itself and may be introduced in evidence or used for any other purpose without the production of any other counterparts.

    12.  Invalid Provisions.  In the event that any provision of this Agreement is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability shall not be construed as rendering any other provisions contained herein invalid or unenforceable, and all such other provisions shall be given full force and effect to the same extent as though the invalid and unenforce­able provision was not contained herein.

3

IN WITNESS WHEREOF, the Company and the Stock Purchaser have executed this Agreement effective as of the date first written hereinabove.

	HEALTH SCIENCES GROUP, INC.  

	STOCK PURCHASER:

	A Delaware corporation

	 
	By:

_____________________________

	__________________________________

Street Address

	Title: _______________________________

	__________________________________

City and State

	 	__________________________________

Social Security No.

	 	 

	Agreed to and Accepted:

	 
	_____________________

	 

By his or her signature below, the spouse of the Stock Purchaser acknowledges that he or she has read this Agreement and the Plan and is familiar with the terms and provisions thereof, and agrees to be bound by all the terms and conditions of said Agreement and said Plan document; the spouse by signing below agrees to be bound by this agreement and designates Stock Purchase as attorney in fact with respect to all matters pertaining thereto.

	 	________________________________

Spouse

	 	 
	 	Dated: __________________________

By his or her signature below the Stock Purchaser represents that he or she is not legally married as of the date of execution of this Agreement.

	 	___________________________________

Stock Purchaser

	 	 
	 	Date: ______________________________

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