Document:

ex10-19.htm

 

Exhibit 10.19

 

Agreement between NuState Energy Holding, Inc.,

Rentar Environmental Solutions, Inc., and Rentar Logic, Inc.

THIS binding Agreement is entered into between Rentar Environmental Solutions, Inc. (“Rentar”) with an address at 11586 Pierson Road, West Palm Beach, Florida 33414. Rentar Logic Inc. (“Rentar Logic”) with an address at 11586 Pierson Road, West Palm Beach, Florida 33414 and NuState Energy Holdings, Inc. (“NuState”), with an address at _______ (collectively the “Parties” and individually a “Party”) as of the 7th day of April 2010. The Parties agree as follows:

WHEREAS, Rentar Environmental Solutions, Inc. (“Rentar Environmental”) formed a Delaware company called Rentar Logic, Inc. (“Rentar Logic”) in April 2008, and;

WHEREAS Rentar Logic purchased certain NuState Energy Holdings intellectual property some of which is known as “My Driver’s Seat” (“Intellectual Property”) for one million nine hundred twenty one thousand eight hundred thirty dollars ($1,921,830) in debt and 49% of Rentar Logic common stock, and

WHEREAS, the Parties intend to settle the balance of the Rentar outstanding debt to NuState of one million nine hundred twenty one thousand eight hundred thirty dollars ($1,921,830) through a release of a pro-rata amount of the escrowed common shares of Rentar based upon an agreed value of five dollars ($5.00) per share which equals 384,366 shares as provided herein;

WHEREAS, NuState and Rentar mutually agree to terminate their present relationship in all respects (except for that certain Master Distribution Agreement – Exhibit 1) and mutual involvement in Rentar Logic as provided herein and ;

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements and understandings set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

	
  

	
1.

	
Recitals.

	
The Parties agree that the recitals are true and correct and incorporated herein as part of this Agreement.

 

	
  

	
2.

	
Rentar Debt to NuState and Certain Transfers.

 

a)           Termination of Rentar Debt to NuState.  The Rentar outstanding debt to NuState of one million nine hundred twenty one thousand eight hundred thirty dollars ($1,921,830) is terminated as provided in this Agreement.

 

b)           Release of Escrowed Rentar Shares to NuState and to Rentar. The Parties shall jointly instruct the Escrow Agent to release to NuState of a pro-rata amount of the escrowed common shares of Rentar based upon the agreed value of five dollars ($5.00) per share which equals 284,366 shares of Rentar and that Rentar and Rentar Logic shall have no claim, right, title or interest of any kind in such 384,366 shares of Rentar. The parties agree that the remaining 215,634 shares of Rentar are to be released to Rentar and that NuState shall have no claim, right, title or interest of any kind to such 215,634 shares of Rentar.

 

  

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Exhibit 10.19

 

c)           NuState Transfer to Rentar Logic Shares to Rentar.  NuState irrevocably agrees to transfer the 49% equity interest represented by shares in Rentar Logic to Rentar and agrees to execute all transfer documents to effectuate such transfer simultaneously with the Parties executing this Agreement. NuState appoints Rentar Logic as its attorney-in-fact to execute all documents necessary to transfer for the benefit of Rentar the shares in Rentar Logic held by NuState, to cancel the same and for Rentar Logic to issue a new share certificate in the name of Rentar for the same number of shares and Rentar Logic agrees to so act.

 

d)           Transfer of Non-exclusive copy of Rentar Logic to NuState.  Upon execution of this Agreement, Rentar shall deliver to NuState a complete non-exclusive copy of the Intellectual Property received by Rentar from John Urabnowics on April 6, 2010.

 

e)           Master Distribution Agreement.  See Exhibit Z.

 

f)           Certain C. H. Robinson Matters.  NuState shall hold harmless Rentar with respect to the litigation involving C. H. Robinson and _____ styled as ______. Upon execution of this Agreement, NuState shall provide Rentar with a notarized statement that Rentar is not involved in the Robinson Matters as provided in Exhibit 2.

 

3.      Mutual General Release.  Except as to the obligations of this Agreement, each Party, and their heirs, legal representatives, successors, agents, assigns, hereby fully release, acquit, remise, and forever discharge the other Parties, and their heirs, legal representatives, successors, agents, assigns, officers, directors, stockholders, attorneys, insurance carriers, employees, affiliates, and partners, whether current or former, from any and all claims, demands, suits, debts, dues, contracts, accounts, agreements, promises, damages, interest, attorney’s fees and causes of action of whatever kind or nature, including all unknown, unforeseen, unanticipated and unsuspected claims or causes of action and the consequences thereof, as well as those now disclosed and known to exist, whether asserted or not asserted.

 

	
  

	
4.

	
Escrow Agent Instructions and Release.

 

a)           Instructions to Escrow Agent.  The Parties jointly and irrevocably instruct the Escrow Agent to release from escrow the 600,000 shares of Rentar and to deliver 384,366 shares of Rentar to NuState and 215,634 shares of Rentar to Rentar. Upon such distribution, the Escrow shall be terminated. The joint letter of instruction is attached as Schedule A.

 

  

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Exhibit 10.19

 

b)           Release of Escrow Agent.  The Parties and their heirs, legal representatives, successors, agents, assigns, hereby fully release, acquit, remise, and forever discharge the Escrow Agent (Whisenand & Turner P.A. and its officers, directors, shareholders, agents and employees), and their heirs, legal representatives, successors, agents, assigns, officers, directors, stockholders, attorneys, insurance carriers, employees, affiliates, and partners, whether current or former, from any and all claims, demands, suits, debts, dues, contracts, accounts, agreements, promises, damages, interest, attorney’s fees and causes of action of whatever kind or nature, including all unknown, unforeseen, unanticipated and unsuspected claims or causes of action and the consequences thereof, as well as those now disclosed and known to exist, whether asserted or not asserted.

 

c)           Advice of Counsel.  Each of the Parties represents and warrants that each Party has had a reasonable time to seek advice of counsel and has sought such advice as the Party deems appropriate prior to the execution of this Agreement.

 

5.      Corporate Authority Representation and Warranty.  Each of the Parties executing this Agreement expressly warrant and represent to the other two parties, respectively, and each of the other two parties is expressly relying on the representation and warranty that: (a) the Party is a duly formed corporation in good standing in its respective place of domicile; (b) the execution of this Agreement is fully authorized by the Party on its own behalf and on behalf of all persons acting by, through or under any of them and that no other corporate authorization of any kind is necessary to make the execution of this Agreement binding on the Party; (c) the person executing this Agreement has the necessary and appropriate authority to do so from the corporate Party effective to bind the corporate Party; (d) and (e) there are no pending agreements, transactions or negotiations to which the Party is a party that would render this Agreement or any part thereof void, voidable, or unenforceable.

 

6.      General Provisions.

 

a)           Severability. If any provision of this Agreement or the application of any provision of this Agreement to any Party or circumstance is, to any extent, adjudged invalid or unenforceable, the application of the remainder of such provision to such Party or circumstance, the application of such provision to other Parties or circumstances, and the application of the remainder of this Agreement will not be affected thereby.

 

b)           Governing Law.  This Agreement will be governed by and construed and enforced in accord with the laws of the State of Florida, without regard to principles of conflicts of law that would make the laws of another jurisdiction applicable. Venue will be in the State Courts of Miami-Dade County.

 

c)           Successors and Assigns and Transferees.  Except as expressly provided herein, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto.

 

  

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Exhibit 10.19

 

d)           Entire Agreement; Amendment. This Agreement constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof. Neither this Agreement nor any term hereof may be amended, waived, discharged or terminated orally, except by a written instrument signed by all Parties. No waiver of any term, provision or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a further waiver of any such term, provision or condition or as a waiver of any other term, provision or condition.

 

e)           Counterparts.  This Agreement may be executed in multiple counterparts with the same effect as if all signing parties had signed the same document.  All counterparts when signed and assembled together will constitute a single, fully-executed instrument.  Facsimile and .pdf executed instruments shall have the same validity as originally executed instruments.

 

f)           Dispute Resolution.  Any disputes regarding or relating to any aspect of this Agreement’s formation, meaning, performance or breach, or arising out of or relating in any way to this Agreement, shall be determined exclusively by arbitration before a single arbitrator pursuant to the commercial arbitration procedures of the American Arbitration Association (“AAA”), and administered by AAA in accordance with its commercial arbitration rules.  The Parties shall endeavor in good faith first to attempt to resolve the controversy or claim through mediation administered by the AAA, before commencing any arbitration.  Any mediation or arbitration shall be confidential (except as may be required in any judicial proceeding brought to enforce these arbitration provisions or any award rendered hereunder) and shall be conducted in Miami-Dade County, Florida and the parties hereto irrevocably submit to the exclusive jurisdiction of the state courts of Florida for any proceedings incidental to arbitration or for the confirmation and enforcement of any award.  The prevailing Party in such arbitration shall be entitled to recover its reasonable costs and attorneys’ fees as shall be determined by the arbitrator.

 

g)           Attorneys’ Fees.  In any legal proceeding that arises out of or in connection with this Agreement, the prevailing Party or Parties in any such action shall be entitled to have their reasonable attorneys’ fees (including all related costs and expenses and the same related to or associated with any appeal) paid by the non-prevailing Party or Parties in such action. 

 

h)           Faxes Binding.  The Parties agree that any facsimile document with a signature is deemed to be an original signature and binding on all Parties.

 

i)           No Assignment of Claims.  The Parties hereby represent and warrant to each other that they have not assigned, sold or transferred any of the claims or rights that are being released under this Agreement.

 

j)           No Admission of Liability.  This Agreement and all negotiations, statements, and proceedings in connection herewith (i) shall not constitute or in any manner be or be deemed to be evidence of an admission or concession of any liability, fault, or wrongdoing which is hereby expressly denied and disclaimed by each Party and (ii) shall not be offered or received in evidence in any action or proceeding in any court or tribunal, or used in any way as an admission, concession, or evidence of any liability, fault, or wrongdoing of any nature on the part of either Party in any proceeding, except that this Agreement may be offered in evidence in a proceeding where enforcement of this Agreement is sought.

 

  

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Exhibit 10.19

 

k)           Covenant.  With the exception of the obligations provided for in this Agreement, the Parties covenant and agree that they will not commence any action or suit or claim or prosecute any pending action or suit or claim, in law or in equity, against any other Party to this Agreement on account of any action or cause of action which now exists or which may hereafter accrue in the Party’s favor which is released hereunder. In addition to any other liability which shall accrue upon the breach of this covenant, the Party adjudicated to be in breach of this covenant shall be liable to pay all reasonable attorney’s fees and costs incurred by the other Party in the defense of such action, suit, or claim.

 

l)           Notices.  Any notice to any Party under this Agreement shall be addressed to the address stated on page one and shall be effective upon transmittal by confirmed hand delivery, or confirmed delivery by recognized courier (such as FedEx, UPS, etc.).

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year written below.

 

 

	NuState Energy Holdings, Inc. 	 	NuState Energy Holdings, Inc.	 
	 	 	 	 
	By: /s/ Kevin Yates 	 	By: /s/ Tom Murphy 	 
	Kevin Yates – Chairman 	 	George Q. Stevens - CEO	 
	 	 	 	 
	Rentar Environmental Solutions, Inc. 	 	Rentar Logic, Inc	 
	 	 	 	 
	By: 	/s/ Joel Ratner 	 	By:	

/s/ Joel Ratner 

	 
	Joel Ratner – Chairman 	 	

Joel Ratner – Chairman

	 

                                                           

Exhibits

 

A.           Joint Letter of Instruction to Escrow Agent

 

B.           C.H. Robinson Letter

 

C.           Master Distribution Agreement dated January 5, 2007 – Terminated

 

Z.           Yellow Sheet Addendum

 

1.           Mutual Cancellation and Non-Compete

 

  

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Exhibit 10.19

 

EXHIBIT 1

 

MUTUAL CANCELLATION

 

AND

 

NON-COMPETE AGREEMENT

 

 

Rentar Environmental Solutions, Inc. and NuState Energy Holdings, Inc. upon execution of this document, agree to mutually cancel the existing Distributor Agreement dated January 5, 2007 in consideration of NuState entering into the Non-compete Agreement.

 

It is understood and agreed between Nustate Energy Holdings, Inc. (“NuState”) and Rentar Environmental Solutions, Inc. (“Rentar”) as to the following:

 

1.  Covenant Not To Compete.  NuState covenants and agrees that they, their associates, officers, directors, employees or related parties will not, during the term hereof and for a period of two (2) years (the “Restricted Period”), directly or indirectly engage in the business of the manufacture or sale of any precombustion technology. This agreement specifically prevents NuState from doing business with Rexecon International Corporation regarding any precombustion technology during the applicable term and Restricted period.

 

2. Injunctive Relief.  NuState directly or indirectly recognizes that a break of any of the provisions of this Article would cause irreparable damage to Rentar and that damage is difficult to measure. Therefore, in the event of a violation or a threatened violation by NuState, or related parties, NuState hereby acknowledges and agrees that Rentar will have the right, in addition to all other remedies available to it by law, in equity and under this Agreement, to affirmative or negative injunctive relief from a court of competent jurisdiction restraining NuState or related parties, from violating paragraph 1 above.

 

3.  If any part of this Agreement is determined to be unenforceable, the Agreement will adjust to what is determined to be enforceable. Venue will be Miami-Dade County, Florida under Florida law. Prevailing party will be entitled to all reasonable attorneys fees.

 

UNDERSTOOD AND AGEED THIS 7TH DAY OF APRIL, 2010.

 

	NuState Energy Holdings, Inc. 	 	Rentar Environmental Solutions, Inc.	 
	 	 	 	 
	By: 	/s/ Kevin Yates	 	By: 	/s/ Joel Ratner	 
	Kevin Yates – Chairman 	 	

Joel S. Ratner – Chairman

	 

 

  

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Exhibit 10.19

 

 

EXHIBIT 2

 

HOLD HARMLESS AFFIDAVIT

 

I, Kevin Yates, as Chairman of NuState Energy Holdings, Inc., hereby hold harmless and indemnify Rentar Environmental Solutions, Inc. from any and all claims regarding the litigation involving C.H. Robinson and further state that Rentar is not involved in the Robinson matters.

 

IN WITNESS WHEREOF, Kevin Yates has hereunto set his hand and seal on April 7, 2010.

 

Signed, sealed and delivered in our presence:

 

NuState Energy Holdings, Inc.

 

BY: _/s/ Kevin Yates___________

Kevin Yates – Chairman

 

 

__________________________

STATE OF FLORIDA

COUNTY OF MIAMI-DADE

 

The foregoing instrument was acknowledged before me this 7th day of April, 2010 by Kevin Yates, as Chairman of NuState Energy Holdings, Inc., who is personally known to me or who has produced South Carolina Driver’s License # _____________Expires ____________ as identification.

 

_/s/ Lorainne Mongeon____________

Print Name

NOTARY PUBLIC—STATE OF

FLORIDA

Commission No:

My Commission

Expires:

 

 

(Seal)

 

  

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Exhibit 10.19

 

EXHIBIT A

 

[DATE]

 

Whisenand & Turner P.A.

501 Brickell Key Drive

Suite 602

Miami, FL 33131

 

 

Re:          Escrow Agreement –Nustate Energy Holdings, Inc. (“NuState”) –Rentar

Environmental Solutions, Inc. (“Rentar”) –Rentar Logic, Inc. (“Rentar Logic”)

 

Ladies/Gentlemen:

 

This is an Irrevocable Joint Letter of Instruction to you from the duly authorized representatives of NuState, Rentar, and Rentar Logic upon which you, as Escrow Agent, are entitled to rely without liability. NuState, Rentar and Rentar Logic irrevocably instruct you to take the following action:

 

	
  

	
1.

	
Release and deliver to NuState the Rentar Shares held in Escrow in the amount of 384,366 shares of Rentar.

 

	
  

	
2.

	
Release and deliver to Rentar and Rentar Shares held in Escrow in the amount of 215,634 shares of Rentar.

 

Upon release and delivery of the referenced shares to NuState and Rentar, the escrow shall be terminated. The Escrow Agent is hereby further released and by NuState, Rentar and Rentar Logic and each of NuState, Rentar and Rentar Logic agree to hold harmless and indemnify the Escrow Agent in all matters arising out of acting as the Escrow Agent.

 

	 	 	 	

Sincerely,

	 
	 	 	 	 	 
	 	NuState Energy Holdings, Inc. 	 	NuState Energy Holdings, Inc.	 
	 	

By: _/s/ Kevin Yates_____________ 

	 	By: _/s/ Tom Murphy_________	 
	 	Kevin Yates-Chairman 	 	George Q. Stevens – CEO	 
	 	 	 	 	 
	 	Rentar Environmental Solutions, Inc. 	 	Rentar Logic, Inc.	 
	 	

By: _/s/ Joel Ratner_______________ 

	 	By: _/s/ Joel Ratner_________	 
	 	

Joel Ratner – Chairman

	 	Joel Ratner-Chairman	 

 

  

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Exhibit 10.19

 

EXHIBIT Z

 

YELLOW SHEET ADDENDUM

 

Insert (a) to replace 2.e.

 

The existing “Distributor Agreement” is hereby terminated. The parties agree to the mutual cancellation and non-compete agreement which is attached as “Exhibit 1.”

 

Rentar agrees to pay NuState a 28% commission on $79,000 within 72 hours. This commission will be paid in Rentar common stock at the previously agreed upon valuation of $5.00 per share.

 

The parties agree to assign Nustate’s 49% interest in Rentar Logic to Rentar Environmental Solutions, Inc. as a result of NuState’s loss of their stock certificate in Rentar Logic.

 

Insert (b) to replace language in 2.f.

Delete from sentence 1 “and ____ styled as _____”

Add “Exhibit 2”

 

  

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Exhibit 10.19

 

RECEIPT FOR THE INTELLECTUAL PROPERTY

 

NuState Energy Holdings, Inc. through its Chairman herewith acknowledges receipt of the Intellectual Property as supplied to both Rentar and NuState by John Urbanowicz as per the Dissolution Agreement executed this date.

 

NuState Energy Holdings, Inc.

 

By: _/s/ Kevin Yates__________

Kevin Yates, Chairman

 

  

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Exhibit 10.19

 

RECEIPT FOR RENTAR STOCK

 

NuState Energy Holdings, Inc. through its Chairman herewith acknowledges receipt of 384,366 shares of Rentar Environmental Solutions, Inc. common stock as per the Dissolution Agreement executed this date.

 

NuState Energy Holdings, Inc.

 

By: _/s/ Kevin Yates_____

Kevin Yates, Chairman

 

  

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Exhibit 10.19

 

LIMITED POWER OF ATTORNEY

 

KNOW ALL PERSONS BY THESE PRESENTS:

 

WHEREAS, geography and time factors may prevent my personal attendance at meetings to be held in Florida from April 5, 2010 through April 9, 2010 regarding the change of control of NuState Energy Holdings, Inc. including the appointment of Kevin Yates as Chairman, the appointment of myself, George Q. Stevens as CEO, the resignation of Richard Hersch as Chairman, the award of Non-Voting Preferred Shares to Richard Hersch and other meetings regarding an Agreement between NuState Energy Holdings, Inc. and Rentar Environmental, Inc. and a Global Settlement Agreement between NuState Energy Holdings, Inc. and Rentar Environmental, Inc. and;

 

WHEREAS, unforeseen circumstances may require my authorization or someone to sign on my behalf at one or more of the meetings:

 

NOW, THEREFORE, the undersigned hereby, VIA FACSIMILE, constitutes and appoints THOMAS P. MURPHY as my attorney-in-fact and agent, with full power of substitution and re-substitution, for such person and in my name, place and stead, in any and all capacities, to sign any and all contracts and documents, granting unto said attorney-in-fact full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully as to all intents and purposes I might of could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or substitute may lawfully do and cause to be done by virtue hereof specifically regarding the aforementioned April meetings in Florida.

 

IN WITNESS WHEREOF, the undersigned has hereunto set his hand on April 5, 2010.

 

	 	/s/ George Stevens
	 	

GEORGE Q. STEVENS

 

12ex10-20.htm

 

Exhibit 10.20

 

EXECUTIVE EMPLOYMENT AGREEMENT

         This Executive Employment Agreement is entered into by and between NuState Energy Holdings, Inc. ("Employer" or "NuState") and S. Kevin Yates ("Employee"), to be effective on May 6, 2010 (the "Effective Date").

                              W I T N E S S E T H:

         WHEREAS,  Employer is desirous of  employing  Employee  pursuant to the terms and conditions and for the consideration set forth in this Agreement,  and;

WHEREAS, Employee is desirous of entering the employ of Employer pursuant to such terms and conditions and for such consideration as are listed below;

         NOW,  THEREFORE,  for  and in  consideration  of the  mutual  promises, covenants,  and  obligations  contained  herein,  Employer and Employee agree as follows:

ARTICLE 1:  EMPLOYMENT AND DUTIES:

         1.1.  Employer  agrees to employ  Employee,  and Employee  agrees to be employed by Employer,  beginning as of the Effective Date and  continuing  until the date of termination of Employee's  employment  pursuant to the provisions of Article 3 (the "Term"), subject to the terms and conditions of this Agreement.

         1.2.  Beginning as of the Effective Date, Employee shall be employed as President  of  Employer.  Employee  agrees  to serve in the assigned position or in such other executive capacities as may be requested from time to time by Employer and to perform diligently and to the best of Employee's abilities  the duties and services  appertaining  to such position as reasonably determined  by Employer,  as well as such  additional  or  different  duties and services  appropriate to such positions  which Employee from time to time may be reasonably directed to perform by Employer.

         1.3.  Employee  shall at all times  comply  with and be subject to such policies  and  procedures  as  NuState  may  establish  from  time to  time, including,  without limitation, the NuState Company Code of Business Conduct (the "Code of Business Conduct").

         1.4.  Employee  shall,  during the period of  Employee's  employment by Employer,  devote Employee's necessary and sufficient business time, energy, and best efforts to the business  and  affairs  of  Employer.  Employee  may  not  engage,  directly  or indirectly, in any other business,  investment, or activity that interferes with Employee's  performance  of  Employee's  duties  hereunder,  is  contrary to the interest of  Employer  or any of its  affiliated  companies  (collectively,  the "NuState  Entities" or, individually,  a "NuState  Entity"), or requires any   significant   portion  of   Employee's   business   time.   The  foregoing notwithstanding,  the parties  recognize  and agree that  Employee may engage in active and passive personal investments and other business activities which do not conflict with the business  and affairs of the  NuState  Entities or  interfere  with Employee's  performance of his duties  hereunder.  Employee may serve on the board of directors of any entity other than a NuState Entity during the Term without  the  approval  thereof  in  accordance  with  Employer's  policies  and procedures  regarding  such service.  Employee shall be permitted to retain any compensation received for approved service on any unaffiliated corporation's board of directors.

  

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Exhibit 10.20

 

         1.5.  Employee  acknowledges  and agrees that Employee owes a fiduciary duty of  loyalty,  fidelity  and  allegiance  to act at all  times  in the  best interests of the Employer  and the other  NuState  Entities and to do no act which  would,  directly  or  indirectly,  injure  any  such  entity's  business, interests, or reputation.  It is agreed that any direct or indirect interest in, connection with, or benefit from any outside activities, particularly commercial activities, which interest might in any way adversely affect Employer, or any NuState Entity, involves a possible conflict of interest.  In keeping with Employee's fiduciary duties to Employer, Employee agrees that Employee shall not knowingly  become  involved  in a conflict  of  interest  with  Employer  or the NuState  Entities,  or upon  discovery  thereof,  allow such a  conflict  to continue. Moreover, Employee shall not engage in any activity that might involve a possible conflict of interest.

         1.6   Nothing contained  herein  shall be  construed  to  preclude  the transfer of Employee's  employment to another  NuState  Entity  ("Subsequent Employer") as of, or at any time after,  the Effective Date and no such transfer shall be deemed to be a  termination  of  employment  for  purposes of Article 3 hereof; provided, however, that, effective with such transfer, all of Employer's obligations  hereunder  shall be  assumed  by and be  binding  upon,  and all of Employer's  rights hereunder shall be assigned to, such Subsequent  Employer and the defined term "Employer" as used herein shall thereafter be deemed amended to mean such Subsequent  Employer.  Except as otherwise provided above, all of the terms and conditions of this Agreement, including without limitation, Employee's rights and obligations, shall remain in full force and effect following such transfer of employment.

ARTICLE 2:  COMPENSATION AND BENEFITS:

         2.1.  Employee's  base salary shall not be less than $240,000 per annum which shall be paid in accordance with the Employer's  standard payroll practice for its executives.  The parties further agree that Employee's election as Chairman of the Company shall be effective on May 6, 2010. Employee's base salary may thereafter be increased from time to time with the approval of the Compensation Committee of NuState's Board of Directors (the "Compensation Committee") or its delegate, as applicable.  Such increased base salary shall become the minimum base salary under this Agreement and may not be decreased thereafter without the written consent of Employee.

         2.2.  On June 6, 2010,  Employer  shall  grant to  Employee a  non-qualified  stock option to purchase up to 60,000,000 shares of  Employer's  common  stock at an  exercise  price of $0.0025.

 

  

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Exhibit 10.20

 

         2.3.  During the Term, Employer shall pay or reimburse Employee for all actual,  reasonable and customary expenses incurred by Employee in the course of his  employment;   including,   but  not  limited  to,  travel,   entertainment, subscriptions  and dues associated with Employee's  membership in  professional, business and civic  organizations;  provided that such expenses are incurred and accounted for in accordance with Employer's applicable policies and procedures.

         2.4. Employer may withhold from any compensation, benefits, or amounts payable under this Agreement all federal, state, city, or other taxes as may be required pursuant to any law or governmental regulation or ruling.

ARTICLE 3:  TERMINATION OF EMPLOYMENT AND EFFECTS OF SUCH TERMINATION:

         3.1.  Employee's  employment  with  Employer  shall  be  terminated (i) upon the death of Employee,  (ii) upon Employee's Retirement (as defined below), (iii) upon Employee's  Permanent  Disability (as defined below),  or (iv) at any time by Employer  upon written  notice to Employee,  or by Employee  upon thirty (30) days' written notice to Employer, for any or no reason.

         3.2.  If Employee's  employment is  terminated by reason  of any of the following circumstances,  Employee shall not be entitled to receive the benefits set forth in Section 3.3 hereof:

         (i)   Death.

         (ii)  Retirement.  "Retirement"  shall mean  either  (a)  Employee's retirement   at  or  after  normal   retirement   age  (either voluntarily or pursuant to NuState's retirement policy) or (b) the  voluntary  termination  of  Employee's  employment by Employee in accordance with Employer's early retirement policy for other than Good Reason (as defined below).

         (iii) Permanent   Disability.    "Permanent    Disability" shall mean Employee's  physical  or mental incapacity  to perform  his usual duties with such  condition  likely  to remain  continuously  and permanently   as  reasonably  determined   by   the  Compensation Committee in good faith.

         (iv) Voluntary Termination.  "Voluntary  Termination"  shall  mean  a  termination  of employment  in  the sole  discretion  and at  the election  of Employee for other than  Good Reason.  "Good Reason" shall mean (a) a  termination  of employment  by Employee because of a material  breach by Employer of any  material  provision  of this Agreement  which remains  uncorrected  for thirty  (30) days following  written notice of such breach by Employee to Employer, provided  such  termination  occurs  within sixty (60) days after the  expiration  of the notice  period;  or (b) a termination of employment  by Employee  within  six (6) months after  a material reduction in Employee's  rank or responsibility with Employer.

         (v)   Termination for Cause. Termination of Employee's employment by Employer for Cause.  "Cause" shall mean any of the following:

 

  

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Exhibit 10.20

 

               (a) Employee's gross negligence or willful misconduct in the performance  of the  duties and  services  required  of  Employee pursuant to  this Agreement; (b) Employee's  final conviction  of a  felony;  (c) a  material  violation  of  the Code of  Business Conduct  or  (d)  Employee's  material  breach  of  any  material provision  of  this   Agreement  which  remains  uncorrected  for thirty (30) days  following  written  notice  of  such  breach to notice  of such breach  to Employee  by  Employer.  Determination Employee's   employment   will   be  reasonably   made   by   the Compensation Committee in good faith.

         In the event Employee's employment is terminated under any of the foregoing circumstances,  all future compensation to which Employee is otherwise entitled and all future  benefits for which Employee is eligible shall cease and terminate as of the date of termination, except as specifically provided in this Section 3.2.  Employee,  or his estate in the case of Employee's death, shall be entitled to pro rata base salary through the date of such  termination and shall be  entitled  to  any  individual   bonuses  or  individual   annual   incentive compensation  not yet paid but payable under Employer's plans for the year prior to the year of Employee's  termination of employment,  but shall not be entitled to any  annual  bonus  or  incentive  compensation  for  the  year in  which  he terminates  employment  or any other  payments  or  benefits  by or on behalf of Employer  except  for  those  which  may be  payable  pursuant  to the  terms of Employer's or NuState's  employee benefit plans (as defined in Section 3.4), stock, stock option or incentive plans, or the applicable  agreements underlying such plans.

         3.3   If Employee's employment is terminated by Employee for Good reason or by Employer for any reason other than as set forth in Section 3.2 above Employee shall be entitled to each of the following:

(i) To the extent not otherwise specifically provided in any underlying restricted stock agreements, NuState, at its option and in its sole discretion, shall either (a) cause all shares of NuState common stock previously granted to Employee to be forfeited, in which case, Employer will pay Employee a lump sum cash payment equal to the value of the Restricted Shares (based on the closing price of NuState common stock on the date of termination of employment); or (b) cause the forfeiture restrictions with respect to the Restricted Shares to lapse and such shares shall be retained by Employee.

         (ii)  Subject to the provisions of Section 3.4, Employer shall pay to  Employee a  severance  benefit  consisting  of a  single lump sum  cash payment equal  to two  years' of Employee's base salary as   in   effect  at  the  date  of  Employee's   termination  of employment.  Such severance   benefit shall be paid no later than sixty (60) days following Employee's termination of employment.

         (iii) Employee shall be entitled to any individual bonuses or individual  incentive  compensation  not  yet  paid  but  payable under Employer's  or NuState's plans  for years  prior to the year  of Employee's termination of employment.  Such amounts, if any, shall  be paid  according  to the terms and  conditions set forth in the applicable plan document.

  

4

  

 

Exhibit 10.20

 

         (iv)  Employee shall be entitled to any   individual bonuses or individual incentive   compensation   under    Employer's   or NuState's   plans, or   any   successor   annual   incentive compensation  plan, for  the year  of  Employee's  termination of employment  determined as  if Employee had  remained employed  by the Employer  for the entire year.  Such amounts shall be paid to Employee at the time that such amounts are   paid to similarly situated employees.

3.4. The severance benefit paid to Employee pursuant to Section 3.3 shall be in consideration of Employee's continuing obligations hereunder after such termination, including, without limitation, Employee's obligations under Article 4. Further, as a condition to the receipt of such severance benefit, Employer, in its sole discretion, may require Employee to first execute a release, in the form established by Employer, releasing Employer and all other NuState Entities, and their officers, directors, employees, and agents, from any and all claims and from any and all causes of action of any kind or character, including, but not limited to, all claims and causes of action arising out of Employee's employment with Employer and any other NuState Entities or the termination of such employment. The performance of Employer's obligations under Section 3.3 and the receipt of the severance benefit provided thereunder by Employee shall constitute full settlement of all such claims and causes of action. Employee shall not be under any duty or obligation to seek or accept other employment following a termination of employment pursuant to which a severance benefit payment under Section 3.3 is owing and the amounts due Employee pursuant to Section 3.3 shall not be reduced or suspended if Employee accepts subsequent employment or earns any amounts as a self-employed individual. Employee's rights under Section 3.3 are Employee's sole and exclusive rights against the Employer or its affiliates and the Employer's sole and exclusive liability to Employee under this Agreement, in contract, tort or otherwise, for the termination of his employment relationship with Employer. Employee agrees that all disputes relating to Employee's termination of employment, including, without limitation, any dispute as to "Cause" or "Voluntary Termination" and any claims or demands against Employer based upon Employee's employment for any monies other than those specified in Section 3.3, shall be resolved through the Arbitration as provided in Section 5.6 hereof; provided, however, that decisions as to whether "Cause" exists for termination of the employment relationship with Employee and whether and as of what date Employee has become permanently disabled are delegated to the Compensation Committee for determination and any dispute of Employee with any such decision shall be limited to whether the Compensation Committee reached such decision in good faith. Nothing contained in this Article 3 shall be construed to be a waiver by Employee of any benefits accrued for or due Employee under any employee benefit plan (as such term is defined in the Employees' Retirement Income Security Act of 1974, as amended) maintained by Employer except that Employee shall not be entitled to any severance benefits pursuant to any severance plan or program of the Employer.

         3.5.  Termination of  the employment  relationship does  not  terminate those  obligations  imposed by this Agreement which are continuing  obligations, including, without limitation, Employee's obligations under Article 4.

  

5

  

Exhibit 10.20

 

ARTICLE 4:  OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION:

         4.1.  All information, ideas, concepts, improvements,  discoveries, and inventions,  whether patentable or not, which are conceived,  made, developed or acquired  by  Employee,  individually  or in  conjunction  with  others,  during Employee's  employment  by Employer  or any of its  affiliates  (whether  during business  hours or otherwise  and whether on  Employer's  premises or otherwise) which relate to the business, products or services of Employer or its affiliates (including,  without  limitation,  all such  information  relating to  corporate opportunities,  research,  financial and sales data,  pricing and trading terms, evaluations, opinions,  interpretations,  acquisition prospects, the identity of customers  or their  requirements,  the  identity  of key  contacts  within  the customer's organizations or within the organization of acquisition prospects, or marketing and merchandising  techniques,  prospective names, and marks), and all writings or materials of any type embodying any of such items, shall be the sole and exclusive property of Employer or its affiliates, as the case may be.

4.2. Employee acknowledges that the businesses of Employer and its affiliates are highly competitive and that their strategies, methods, books, records, and documents, their technical information concerning their products, equipment, services, and processes, procurement procedures and pricing techniques, the names of and other information (such as credit and financial data) concerning their customers and business affiliates, all comprise confidential business information and trade secrets which are valuable, special, and unique assets which Employer or its affiliates use in their business to obtain a competitive advantage over their competitors. Employee further acknowledges that protection of such confidential business information and trade secrets against unauthorized disclosure and use is of critical importance to Employer and its affiliates in maintaining their competitive position. Employee hereby agrees that Employee will not, at any time during or after his employment by Employer, make any unauthorized disclosure of any confidential business information or trade secrets of Employer or its affiliates, or make any use thereof, except in the carrying out of his employment responsibilities hereunder. Confidential business information shall not include information in the public domain (but only if the same becomes part of the public domain through a means other than a disclosure prohibited hereunder). The above notwithstanding, a disclosure shall not be unauthorized if (i) it is required by law or by a court of competent jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which Employee's legal rights and obligations as an employee or under this Agreement are at issue; provided, however, that Employee shall, to the extent practicable and lawful in any such events, give prior notice to Employer of his intent to disclose any such confidential business information in such context so as to allow Employer or its affiliates an opportunity (which Employee will not oppose) to obtain such protective orders or similar relief with respect thereto as may be deemed appropriate.

         4.3.  All written  materials, records,  and other documents made by, or coming  into the  possession  of,  Employee  during  the  period  of  Employee's employment  by  Employer  which  contain  or  disclose   confidential   business information or trade secrets of Employer or its  affiliates  shall be and remain the  property  of  Employer,  or  its  affiliates,  as the  case  may  be.  Upon termination of Employee's employment by Employer, for any reason, Employee promptly shall deliver the same, and all copies thereof, to Employer.

  

6

  

 

Exhibit 10.20

 

         4.4   For purposes of this Article 4, "affiliates" shall mean entities in which Employer has a 20% or more direct or indirect equity interest.

ARTICLE 5:  MISCELLANEOUS:

         5.1.  Except as otherwise  provided in Section 4.4 hereof, for purposes of this Agreement,  the terms  "affiliate" or  "affiliated"  means an entity who directly,  or  indirectly  through  one or  more  intermediaries,  controls,  is controlled  by,  or is  under  common  control  with  NuState  or  in  which NuState has a 50% or more equity interest.

         5.2.  For   purposes  of  this   Agreement,   notices  and   all  other communications  provided  for herein  shall be in writing and shall be deemed to have been duly given when  received by or tendered to Employee or  Employer,  as applicable,  by pre-paid  courier or by United  States  registered  or certified mail, return receipt requested, postage prepaid, addressed as follows:

         If to Employer, to NuState Company at 1201 Main St, Columbia, South Carolina, to the attention of the General Counsel, or to such other address as Employee shall receive notice thereof.

         If to Employee, to his last known personal residence.

         5.3.  This Agreement shall be  governed by and  construed and enforced, in all respects in accordance with the law of the State of South Carolina, without regard to  principles  of conflicts of law,  unless  preempted by federal law, in which case federal law shall govern;  provided,  however, that the NuState Dispute Resolution  Plan and the Federal  Arbitration  Act shall  govern in all respects with regard to the resolution of disputes hereunder.

         5.4. No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

         5.5.  It is a  desire  and  intent  of  the  parties  that  the  terms, provisions,  covenants,  and  remedies  contained  in this  Agreement  shall  be enforceable to the fullest extent permitted by law. If any such term, provision, covenant,  or remedy of this Agreement or the application thereof to any person, association, or entity or circumstances shall, to any extent, be construed to be invalid  or  unenforceable  in whole  or in part,  then  such  term,  provision, covenant,  or  remedy  shall  be  construed  in a  manner  so as to  permit  its enforceability  under the applicable law to the fullest extent permitted by law. In any case,  the  remaining  provisions  of this  Agreement or the  application thereof to any person,  association, or entity or circumstances other than those to which they have been held  invalid  or  unenforceable,  shall  remain in full force and effect.

 

  

7

  

 

Exhibit 10.20

 

         5.6.  It is the mutual  intention  of the  parties to have any  dispute concerning this Agreement resolved out of court. Accordingly, the parties agree that any such dispute shall, as the sole and exclusive  remedy, be submitted for resolution through the  Arbitration through the American Arbitration Association;  provided, however that the  Employer,  on its own behalf  and on behalf of any of the  NuState Entities,  shall be entitled to seek a  restraining  order or  injunction in any court of competent jurisdiction to prevent any breach or the continuation of any breach of the  provisions  of Article 4 and Employee  hereby  consents that such restraining  order or  injunction  may be granted  without the  necessity of the Employer  posting any bond.  The parties agree that the resolution of any such dispute through such Arbitration shall be final and binding.

         5.7. This  Agreement shall be binding upon and inure to the benefit of Employer, to the extent herein provided, NuState and any other person, association,  or  entity  which  may  hereafter  acquire  or  succeed  to all or substantially all of the  business or assets of  Employer by any means  whether direct or indirect, by purchase, merger, consolidation, or otherwise. Employee's rights and  obligations  under this  Agreement  are  personal  and such  rights, benefits,  and obligations of Employee shall not be voluntarily or involuntarily assigned,  alienated, or transferred,  whether by operation of law or otherwise, without the prior written  consent of Employer,  other than in the case of death or incompetence of Employee.

         5.8.  This  Agreement replaces and merges any previous  agreements  and discussions pertaining to the subject  matter  covered  herein.  This Agreement constitutes the entire  agreement  of the  parties  with regard to the terms of Employee's  employment,  termination of employment and severance  benefits,  and contains all of  the  covenants,  promises,  representations,  warranties,  and agreements between the parties with respect to such matters.  Each party to this Agreement   acknowledges  that  no  representation,   inducement,   promise,  or agreement,  oral or written,  has been made by either  party with respect to the foregoing  matters  which  is  not  embodied  herein,  and  that  no  agreement, statement, or promise relating to the employment of Employee by Employer that is not contained in this Agreement shall be valid or binding.  Any  modification of this  Agreement  will be  effective  only if it is in writing and signed by each party whose  rights  hereunder  are  affected  thereby,  provided  that any such modification must be authorized or approved by the Compensation Committee or its delegate, as appropriate.

[THIS BOTTOM PORTION OF PAGE 8 IS INTENTIONALLY LEFT BLANK]

  

8

  

Exhibit 10.20

         IN WITNESS  WHEREOF,  Employer and  Employee  have duly  executed  this Agreement in multiple originals to be effective on the Effective Date.

 

	 	 	

NUSTATE ENERGY HOLDINGS, INC.

	 	 
	 	 	 	 	 	 
	 	 	 	 By:	  /s/ Kevin Yates	 
	Dated:	5/28/2010 	 	 	

Name: S. Kevin Yates

	 
	 	 	 	 	

Title: Chairman of the Board,

	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	

WITNESS

	 	 
	 	 	 	 	 	 
	 	 	 	 By: 	/s/ Tom Murphy	 
	Dated:	5/28/2010 	 	 	 	 
	 	 	 	 	

Tom Murphy

	 

 

9

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