Document:

exhibit10_12.htm

 

 

 

Exhibit 10.12

 

MEDL MOBILE HOLDINGS, INC.

AUDIT COMMITTEE CHARTER

A. Purpose and Scope

 

The primary function of the Audit Committee (the "Committee") is to oversee the accounting and financial reporting processes of MEDL Mobile Holdings, Inc. and its subsidiaries (the "Corporation"), and the audits of the financial statements of the Corporation and to exercise the responsibilities and duties set forth below, including, but not limited to: (a) assist the Board of Directors in fulfilling its responsibilities by reviewing: (i) the financial reports provided by the Corporation to the Securities and Exchange Commission ("SEC"), the Corporation's stockholders or to the general public, and (ii) the Corporation's internal financial and accounting controls, (b) oversee the appointment, compensation, retention and oversight of the work performed by any independent public accountants engaged by the Corporation, (c) recommend, establish and monitor procedures designed to improve the quality and reliability of the disclosure of the Corporation's financial condition and results of operations, (d) recommend, establish and monitor procedures designed to facilitate (i) the receipt, retention and treatment of complaints relating to accounting, internal accounting controls or auditing matters and (ii) the receipt of confidential, anonymous submissions by employees of concerns regarding questionable accounting or auditing matters, (e) engage advisors as necessary, and (f) determine the funding from the Corporation that is necessary or appropriate to carry out the Committee's duties.

 

B. Composition

 

The Committee shall be comprised of such minimum number of directors as to satisfy the audit committee composition requirements promulgated by the SEC, the Financial Industry Regulatory Authority, any exchange upon which securities of the Corporation are traded, or any governmental or regulatory body exercising authority over the Corporation (each a "Regulatory Body" and collectively, the "Regulatory Bodies"), as in effect from time to time. The composition of the Committee shall satisfy the independence requirements of any applicable Regulatory Body, and each member of the Committee shall be free from any relationship that, in the opinion of the Board of Directors, would interfere with the exercise of his or her independent judgment as a member of the Committee.

 

 

Each member of the Committee shall be able to read and understand fundamental financial statements, including a balance sheet, income statement, and cash flow statement. At least one member of the Committee shall have had past employment experience in finance or accounting, requisite professional certification in accounting, or other comparable experience or background which results in the individual's financial sophistication, including being or having been a chief executive officer, chief financial officer or other senior officer with financial oversight responsibilities.

 

 

The members of the Committee shall be elected by the Board of Directors at the meeting of the Board of Directors following each annual meeting of stockholders and shall serve until their successors shall be duly elected and qualified or until their earlier resignation or removal. Unless a Chair is elected by the full Board of Directors, the members of the Committee may designate a Chair by majority vote of the full Committee membership.

 

 

The Committee shall meet with management, the internal auditors, if any, and the independent accounting firm in executive sessions at least quarterly to discuss matters for which the Committee has responsibility.

 

 

 

  

  

  

 

C. Responsibilities and Duties

 

To fulfill its responsibilities and duties, the Committee shall:

 

 

Document Review

 

 

1. Review and assess the adequacy of this Charter periodically as conditions dictate, but at least annually (and update this Charter if and when appropriate).

 

 

2. Review with representatives of management and representatives of the independent accounting firm the Corporation's audited annual financial statements prior to their filing as part of the Annual Report on Form 10-K. After such review and discussion, the Committee shall recommend to the Board of Directors whether such audited financial statements should be published in the Corporation's Annual Report on Form 10-K. The Committee shall also review the Corporation's quarterly financial statements prior to their inclusion in the Corporation's Quarterly Reports on Form 10-Q.

 

 

3. Instruct the independent accounting firm to review the Corporation's interim financial statements prior to their inclusion in the Corporation's Quarterly Reports on Form 10-Q.

 

 

Independent Accounting Firm

 

 

4. The Committee shall be directly responsible for the appointment, compensation, retention and oversight of the work of any independent accounting firm engaged by the Corporation for the purpose of preparing or issuing an audit report or performing other audit, review or attest services or any other related work.

 

 

The authority of the Committee shall include ultimate authority to approve all audit engagement fees and terms. The Committee shall have the ultimate authority and responsibility to appoint, evaluate and, when warranted, replace, such independent accounting firm (or to recommend such replacement for shareholder approval in any proxy statement).

 

 

5. Resolve any disagreements between management and the independent accounting firm as to financial reporting matters.

 

 

 

  

  

  

 

 

6. Instruct the independent accounting firm that it should report directly to the Committee on matters pertaining to the work performed during its engagement and on matters required by applicable Regulatory Body rules and regulations.

 

 

7. On an annual basis, receive from the independent accounting firm a formal written statement identifying all relationships between the independent accounting firm and the Corporation consistent with Independence Standards Board Standard 1, as it may be modified or supplemented. The Committee shall actively engage in a dialogue with the independent accounting firm as to any disclosed relationships or services that may impact the independent accounting firm's objectivity and independence. The Committee shall take appropriate action to oversee the independence of the independent accounting firm.

 

 

8. On an annual basis, discuss with representatives of the independent accounting firm the matters required to be discussed by Statement on Auditing Standards 61, as it may be modified or supplemented.

 

 

9. Meet with the independent accounting firm prior to the audit to review the planning and staffing of the audit and consider whether or not to approve the auditing services proposed to be provided.

 

 

10. Evaluate the performance of the independent accounting firm and consider the discharge of the independent accounting firm when circumstances warrant. The independent accounting firm shall be ultimately accountable to the Committee.

 

 

11. Oversee the rotation of the lead (or coordinating) audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit at least once every five years, and oversee the rotation of other audit partners, in accordance with applicable rules and regulations.

 

 

12. Consider in advance whether or not to approve any audit and non-audit services to be performed by the independent accounting firm required to be approved by the Committee pursuant to the rules and regulations of any applicable Regulatory Body and adopt and implement policies for such pre-approval.

 

 

13. The Committee shall have the authority to oversee and determine the compensation of any independent accounting firm engaged by the Corporation and shall notify the Corporation of anticipated funding needs of the Committee.

 

 

Internal Audit Function

 

 

14. Review the responsibilities, budget and staffing of any internal auditors.

 

 

15. Review the significant reports to management prepared by any internal auditors and management's responses.

 

 

 

  

  

  

 

 

Financial Reporting Processes

 

 

16. In consultation with the independent accounting firm and management, review annually the adequacy of the Corporation's internal control over financial reporting.

 

 

17. Review disclosures made to the Committee by the Corporation's chief executive officer and chief financial officer in connection with their certifications of the Corporation's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, including disclosures concerning (a) evaluations of the design and operation of the Corporation's internal control over financial reporting, (b) significant deficiencies and material weaknesses in the design and operation of the Corporation's internal control over financial reporting which are reasonably likely to adversely affect the Corporation's ability to record, process, summarize, and report financial information, and (c) any fraud, whether or not material, that involves management or other employees who have a significant role in the Corporation's internal controls. The Committee shall direct the actions to be taken and/or make recommendations to the Board of Directors of actions to be taken to the extent such disclosures indicate the finding of any significant deficiencies in internal controls or fraud.

 

 

18. Regularly review the Company's critical accounting policies and accounting estimates resulting from the application of these policies and inquire at least annually of both the Corporation's internal auditors, if any, and the independent accounting firm as to whether either has any concerns relative to the quality or aggressiveness of management's accounting policies.

 

 

19. Request and review periodic reports from management of the Corporation as to the Corporation's processes for reporting on internal controls of the Corporation as required by Section 404 of the Sarbanes-Oxley Act of 2002.

 

 

Compliance

 

 

20. To the extent deemed necessary by the Committee to carry out its duties, it shall have the authority to engage outside counsel, independent accounting consultants and/or other experts at the Corporation's expense.

 

 

21. Determine the funding necessary for (i) compensation of any independent accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Corporation, (ii) ordinary administrative expenses of the Committee that are necessary or appropriate in carrying out the Committee's duties, and (iii) compensation of any outside advisors to be engaged by the Committee and notify the Corporation of anticipated funding needs of the Committee.

 

 

22. Establish written procedures for (a) the receipt, retention, and treatment of complaints received by the Corporation regarding accounting, internal accounting controls, or auditing matters; and (b) the confidential, anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters.

 

 

23. Investigate any allegations that any officer or director of the Corporation, or any other person acting under the direction of any such person, took any action to fraudulently influence, coerce, manipulate, or mislead any independent public or certified accountant engaged in the performance of an audit of the financial statements of the Corporation for the purpose of rendering such financial statements materially misleading and, if such allegations prove to be correct, take or recommend to the Board of Directors appropriate disciplinary action.

 

 

 

  

  

  

 

 

Reporting

 

 

24. Prepare, in accordance with the rules of the SEC, as modified or supplemented from time to time, a written report of the Committee to be included in the Corporation's annual proxy statement for each annual meeting of stockholders.

 

 

25. To the extent required by any Regulatory Body, instruct the Corporation's management to disclose in its annual proxy statement for each annual meeting of stockholders, Annual Report on Form 10-K and Quarterly Report on Form 10-Q, the approval by the Committee of any non-audit services performed by the independent accounting firm, and review the substance of any such disclosure and the considerations relating to the compatibility of such services with maintaining the independence of the accounting firm.

 

 

While the Audit Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Audit Committee to plan or conduct audits or to determine that the Corporation's financial statements are complete and accurate and are in accordance with generally accepted accounting principles.exhibit_10.htm

Exhibit 10.1

 

settlement agreement

 

 

between

 

 

tennant nv

 

tennant company

 

 

and

 

 

mr. carolus hubertus huijser

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 2 to 9

 

 

 

Between:

 

(1)  TENNANT NV, a public limited company under the laws of the Netherlands with registered offices at Industrielaan 6, 5405 AB Uden (the Netherlands), and registered under number 16029212, duly represented by Mrs. Heidi M. Wilson, in her capacity as Director of Tennant Holding B.V., Director of Tennant NV;

 

hereinafter referred to as "the Company";

 

 

(2) TENNANT COMPANY, a company under the laws of Minnesota with registered offices at 701 North Lilac Drive, Minneapolis, Minnesota 55422, USA, and registered Minnesota Corporation number 217-AA, duly represented by Mrs. Heidi M. Wilson in her capacity as Vice President, General Counsel, Secretary;

 

hereinafter referred to as “the Tennant Company”;

 

And

 

(3) Mr Carolus Hubertus Huijser, currently residing at Bredabaan 504A, 2930 Brasschaat (Belgium), born on March 4, 1961;

 

hereinafter referred to as “Mr Huijser”;

 

hereinafter collectively referred to as the "Parties" and individually as a "Party.

 

 

WHEREAS

 

(A)           Mr Huijser has been continuously employed by the Company since 2006 as Vice President International for the Tennant group of companies (the “Tennant Group”) in virtue of a services agreement dated August 16, 2006 (the “Services Agreement”);

 

(B)           The Company assigned Mr Huijser to the Belgian company of the group to which the Company belongs;

 

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 3 to 9

 

(C)           During his assignment, Mr Huijser performed his tasks as expat within several other companies of the group to which the Company belongs;

 

(D)           The Company dismissed Mr Huijser on June 28, 2011, served by bailiff, observing a notice period equal to one hundred and twenty (120) calendar days;

 

(E)           Neither party admits any fault, breach or misconduct as the basis for the termination of the employment of Mr Huijser;

 

(F)           The Parties wish to avoid any future disagreements by means of this transnational agreement which constitutes a settlement (“dading”) (the “Settlement Agreement”).

 

 

IT IS AGREED AS FOLLOWS

	  	  

	
  

	
Article 1 – Termination of Employment and other relationships

 

	
1.1.  

	
Mr Huijser confirms the validity of the notification which was served to him by bailiff on June 28, 2011 on behalf of the company, previous to the Settlement Agreement (Appendix A). Mr Huijser confirms as well the validity of the notice period of one hundred and twenty (120) days, pursuant to Section 8 of the Services Agreement (the “Notice Period”).

 

1.2.           Parties mutually agree that Mr. Huijser is released and suspended from duties  and services since the date of signing the Settlement Agreement and that he is exempt from all tasks and services within the Tennant Group, until the end of his employment,  finally and definitely determined on October 31, 2011. Unless otherwise agreed, Mr. Huijser is not allowed to perform any tasks or functions. During the term of the Notice Period therefore no day will be considered as an effective working day.

 

1.3.           Mr Huijser agrees that as a result of the termination of the Services Agreement his employment as forth in clause 1.1 as well as any other relationship he might have with any other company of the Tennant Group, also comes to an end on October 31, 2011, without notice nor indemnity.

 

1.4.           On the date of signing the Settlement Agreement, Mr Huijser will resign from his position as Vice President of the Company’s International business and from all other positions he holds or might have held in the Tennant group.  Due to this Settlement Agreement, all written employment or services agreements, whatever their qualification may be, concluded between Mr Huijser and the Company and/or any other company of the Tennant group will irrevocably come to an end at October 31, 2011 under the terms as set forth in the Settlement Agreement.

 

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 4 to 9

 

1.5.           On the date of signing the Settlement Agreement, Mr. Huijser will resign from his position as Supervisor Director of Tennant Holding BV, as a Director of Tennant Netherland Holding BV and as a Director of Tennant UK Cleaning Solutions Ltd., pursuant to the resignation letter attached to the Settlement Agreement (Appendix B). Mr. Huijser expressly declares that he has no right or claim against the aforementioned companies and that these companies do not have any debt or obligation of any kind against him. Tennant Company and the Company support themselves to hold extraordinary general meetings of shareholders convened with the agenda accepting the resignation of Mr. Huijser, within a period of thirty (30) calendar days after the signing the Settlement Agreement. At the general meeting where the annual accounts for the year 2011 will be approved, discharge to Mr. Huijser will be voted. The Company supports that this discharge will be ratified.

 

1.6.           During the Notice Period Mr Huijser will act in good faith and will continue to comply with all Company policies, including policies regarding the use of Company assets and other policies in the Company’s business ethic guide. Mr Huijser is aware of the fact that the Company is obliged to comply with the U.S. securities law and must disclose the change in his status on a  Form 8-K.

 

1.7.           During the Notice Period Mr Huijser is entitled to receive his current monthly base salary of EUR 21.914,08 (gross amount), as well as his pension and medical care benefits as well as current cost allowance, till October 31, 2011.

 

1.8.           At the end of his employment, Mr Huijser is entitled to receive the end of service holiday payment and pro rata 13th month (10/12th), calculated on the aforementioned monthly base salary. Payment of these amounts will follow within thirty (30) calendar days after the experience of the Notice Period by transfer on the bank account of Mr Huijser.

 

1.9.           The Company shall provide Mr Huijser with all social documents required by law, within thirty (30) calendar days after the end of his employment.

 

 

Article 2 – Lump sum severance

 

2.1           The Company agrees to pay to Mr Huijser, who explicitly accepts, at the latest on August 31, 2011 a gross severance payment equal to EUR 318.109,16, as accepted by Mr Huijser as full and final settlement of all possible disputes according to any severance payment.

 

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 5 to 9

 

 

2.2.           Mr. Huijser agrees with the amount of the severance payment and with the method this compensation was calculated. This compensation replaces any other severance payment to which Mr. Huijser would be entitled by agreement or law pursuant to the cancellation or termination of the cooperation with any entity belonging to the group Tennant and can not be increased as a result of cumulating jurisdictions in which Mr. Huijser has worked.

 

2.3.           Mr Huijser understands and agrees that that the Company will withhold from the gross amount applicable tax and other appropriate deductions and in accordance with the pay roll policies and procedures of the Company.

 

 

Article 3 – Bonus

 

Mr Huijser is entitled to receive a bonus in lieu of 2011 STIP Bonus or any other additional bonus, for a total gross amount of EUR 436.306,50.

 

All payments to Mr Huijser hereunder are subject to withholding of taxes and all other amount required by law. Any taxes due outside the Netherlands and Belgium, if any, will be for account and risk of Mr Huijser, including related costs such as penalties and interest.

 

The net equivalent of the gross amount will be paid to Mr Huijser by transfer to his bank account at the latest on July 31, 2011.

 

 

Article 4 – Pension and health insurance

 

4.1           The Company confirms that all acquired rights under the pension plan(s) to which Mr Huijser is affiliated are fully funded and definitively acquired.

 

4.2           Moreover the Company commits to pay the current pension and medical entitlements into the applicable pension scheme(s) covering the period between July 1, 2011 and October 31, 2011.

 

 

Article 5 – Stock options, restricted stock and restricted stock units

 

At the moment of the termination of his employment all unvested stock options, restricted options and restricted stock units will be forfeited and as a consequence Mr Huijser will no longer be entitled to execute any unvested stock options, restricted stock or restricted stock units in line with the Tennant Long Term Incentive Plans (LTIP’s).

 

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 6 to 9

 

 

Article 6 – Tax assistance

 

The Company will provide to Mr Huijser tax assistance for preparation of his tax declaration for income 2010 and 2011 for a maximum value of EUR 7.030,00 (VAT excluded), such services to be provided by Ernst&Young. The Company undertakes to pay the invoice for a maximum of EUR 7.030,00 (excluding VAT) directly to Ernst & Young within thirty (30) calendar days. Mr Huijser commits to promptly submit all information and documents necessary to enable a timely and correct preparation of his tax declaration under his current fiscal status.

 

Moreover the Company commits to pay the cost of previous tax assistance to Mr Huijser for a maximum amount of EUR 7.830,50. Reimbursement of these costs will be made  within thirty (30) calendar days after presentation of the invoices by payment on the bank account of Mr Huijser.

 

 

 

Article 7 – Return of Company property

 

7.1.           Mr Huijser commits himself to returning to the Company at the latest on July 15, 2011 and during normal business hours all originals and all copies of non public and confidential documents that he has obtained in the course of his employment and that are still in his possession.

 

7.2.           During the Notice Period Mr Huijser is entitled to use company car, fuel card, mobile and laptop in line with the policies of the Company. Mr Huisjer commits himself to returning these properties at the latest on October 31, 2011 at the office of Tennant Europe NV, after an appointment to have made with Mrs I. Marcelis.

 

7.3.           Mr Huijser is entitled to use his current mobile phone number after the end of his employment. Parties agree to fulfill all necessary formalities to ensure a timely transfer of this number.

 

7.4.           The Company commits itself to request the leasing company for a proper quote for the purchase of the company car by mr Huijser by November 1, 2011. If Mr Huijser accepts the offer of the leasing company and the leasing company confirms the possibility of purchase to the Company, Mr Huijser will be exempted from the obligation to return the company car to the Company on October 31, 2011.

 

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 7 to 9

 

 

Article 8 – Outplacement and retraining

 

Mr Huijser is entitled to an outplacement and retraining budget for a maximum of EUR 20.000,00 (VAT excluded) to be allocated during a period of three (3) years following 1 November 2011. The Company will pay these outplacement and retraining costs to a maximum of EUR 20.000,00 (VAT excluded) directly within thirty (30) calendar days after receiving the invoice provided and accepted by Mr. Huijser.

 

Article 9 - Tuition

 

The Company will pay the school tuition for Mr Huijser’s son for about EUR 24,000.00 (VAT excluded) with a minimum of EUR 21,000.00 and a maximum of EUR 25.000,00 (VAT excluded) within thirty (30) calendar days following the presentation of the invoice of the International school (year 2011-2012).

 

 

Article 10 - Waiving

 

10.1.           In entering into this Settlement Agreement, the Parties explicitly declare that this agreement is a full and final settlement of all matters, whether or not presently disputed, that have arisen or could further arise between the Parties and/or between Mr Huijser and any other entity within the Tennant Group related to the cooperation with Mr Huijser and/or the said termination.

 

10.2.           The Parties acknowledge that upon the realization of this Settlement Agreement mutual concessions have been made and that this agreement therefore constitutes a settlement in the sense of article 2044 and following of the Belgian Civil Code (dading/transaction). It is understood and agreed that this is an agreement aiming at the settlement of disputed claims to avoid any possible lawsuit. By entering into this Settlement Agreement, the Company nor any other entity of the Tennant group admit liability or responsibility at any time for any purpose.

 

10.3.           The Parties irrevocably and reciprocally waive the right to initiate or to continue legal proceedings of whatever nature and for whatever reasons as well as related to claims from or to any company of the Tennant-group and waive all rights that they might have based on the existence, the execution and/or the termination of the employment relationship with Mr Huijser and/or any other relationship that might have existed, the case of fraud or deceit excluded and with the exception of the commitments as described in the Settlement Agreement. Mr Huijser waives these rights also towards each company or entity within the Tennant Group. The Parties agree that this Settlement Agreement contains a full settlement and resolution of all disputes and issues between the Parties relating in any manner to the employment of Mr Huijser and/or the termination of the cooperation.  It is also understood and agreed that this Settlement Agreement is a full and final

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 8 to 9

 

 

release applying to all unknown and unanticipated damages or losses to Mr Huijser resulting from or in any way related to the execution and/or the termination of his employment.

 

10.4.           If one of the Parties shall infringe on his obligations as defined in this Settlement Agreement and one of the other Parties files a claim or lawsuit based on legal claims that have been released, the defaulting Party will pay for all legal costs incurred by the other Parties, including reasonable attorneys’ fees.

 

10.5.            The parties understand and agree that this Settlement Agreement shall not be a precedent or model for the resolution or settlement of any future claim resulting from similar or different circumstances.

 

10.6.           Mr Huijser has been represented in negotiations for and the preparation of this Settlement Agreement by his counsel Mr. Kris De Schutter and declares that he understands of the content of this Settlement Agreement and is fully aware of its its legal effects, accepted for final discharge.

 

 

Article 11 - Cooperation and confidentiality

 

As a further consideration for the benefits Mr Huijser receives under this Settlement Agreement, Mr Huijser agrees to cooperate fully with the Company in any matters to which he is knowledgeable as a result of his employment with the Company, including, without limitation, matters that have given or may give rise to a legal claim against the Company or any other entity of the Tennant Group.

 

Article 12 – Communication

 

Mr Huijser agrees that he will not publish, use or distribute any information according to Tennant that is not publicly known.

 

Parties further agree that they will not disparage or provide any negative information about each other or any other company of the Tennant group or harm each other’s another’s reputation in the press, media or towards any other third party.

 

 

  

  

  

Laon Lawyers - settlement agreement 28.6.2011 - page 9 to 9

 

 

Article 13 – Applicable law and competent jurisdiction

 

All matters relating to the interpretation, construction, application, validity and enforcement of this Settlement Agreement is subject to Belgian law.  Only Belgian courts are exclusively competent to deal with any disputes related to this Settlement Agreement.

 

 

 

This Settlement Agreement was signed in Antwerp on June 28, 2011 on 16:25 PM in three (3) originals, of which each Party acknowledges having received one original.

 

 

By Tennant NV ______________________________

 

 

By Tennant Company ______________________________

 

 

By Mr Karel Huijser ______________________________

 

Annexes:

 

	
A)  

	
Notice dated June 28, 2011

	
B)  

	
Resignation letter as Director

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