Document:

separation agreement

    
      

    

    
      Exhibit 10.11
        Separation Agreement between Skye and Mike Stebbins

       

    

    SEPARATION
      AGREEMENT

    

    

    This
      Separation Agreement (“Agreement”) is entered into this 20th 
      day of
      May 2005, by and between Tankless Systems Worldwide, Inc., a Nevada corporation
      (the “Company”), and Michael D. Stebbins (“Employee”).

    

    WHEREAS,
      the
      Employee has provided (i) valuable business and operational services to the
      Company and its affiliated entities for a substantial period of time and (ii)
      advice to the Company and its affiliated entities in connection with its
      business, namely water heating appliances for homes (the “Business”);
      and

    

    WHEREAS,
      Employee’s advice and assistance has been instrumental and valuable in designing
      and developing a new line of products for the Company; and

    

    WHEREAS,
      the
      efforts, services and contributions of Employee have enhanced the Company’s
      ability to sell product, provide warranty services to its customers, increase
      the value of its stock and to generally improve the conduct its business;
      and

    

    WHEREAS,
      Employee has acted diligently, efficiently and in good faith in the performance
      of the services to the Company and has observed a duty of loyalty to the Company
      and its affiliates in relation to communications with employees, customers,
      clients and other business contacts and business relations of the Company and
      all services, work and work product have been professional in quality and
      responsive to the mandate of the needs of the Company; and

    

    WHEREAS,
      the
      Company, as an inducement to Employee to assist the Company in its Business,
      agreed to further compensate Employee at such time as the Company had applied
      for patents with respect to new technologies and had commenced plans to produce
      new products based on such proprietary technologies, which conditions precedent
      have now been satisfied; and

    

    WHEREAS,
      the
      parties desire to terminate their relationship such that Employee will no longer
      be performing any services for the Company; and

    

    WHEREAS,
      the
      parties desire to resolve any and all claims or disputes that may exist between
      one another and release one another from any future claims;

    

    NOW,
      THEREFORE,
      for
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and the covenants contained herein, the parties hereto agree
      as
      follows:

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1. Issuance
      of Stock for Services.
      In
      consideration of services heretofore rendered by Employee to the Company which
      have not otherwise been compensated in any manner, the Company hereby agrees
      to
      issue to Employee Two Hundred Fifty Thousand (250,000) shares of the Company’s
      Common Stock, $0.001 par value, which shares shall be restricted pursuant to
      the
      provisions of Rule 144 of the Securities Act of 1933 (“Shares”). The Shares
      shall be issued upon the execution of this Agreement and, when issued, shall
      be
      deemed validly issued, fully paid and non-assessable. The Shares shall be in
      full and complete payment of all services rendered to the Company and all
      expenses incurred by Employee in any manner relating to the Company, or any
      of
      its affiliates, prior to the date of this Agreement. Such compensation shall
      be
      deemed fully earned when paid and no portion shall be subject to refund or
      return to the Company. 

    

    2. Agreed
      Value of Shares.
      All
      Shares issued in satisfaction of this Agreement shall be deemed to have a stated
      fair market value of $0.05 per share (which price was not arbitrarily
      determined, and takes into consideration the current price of the Company’s free
      trading shares and the restrictions placed on the Shares issued, the financial
      condition of the Company and its operations at the time of execution of this
      Agreement, and the fact that the public market for such stock has been
      substantially illiquid for some time and subject to dramatic changes based
      on
      volume). 

    

    3. Release
      and Indemnity.
      Except
      for the performance of obligations contained in this Agreement, Employee, for
      himself and on behalf of any other party claiming by, through or under him,
      hereby releases, remises, discharges, waives and forgives the Company and each
      of its affiliated entities, and their respective past, present and future
      officers, directors, shareholders, owners, employees, agents, representatives,
      attorneys, accountants, Employees, contractors, affiliates, predecessors,
      successors and assigns (collectively, the “Released Parties”), from and against
      all rights and claims Employee may have against any of the Released Parties
      arising out of, or by reason of, any cause, matter, or thing whatsoever existing
      as of the date of this Agreement, whether known to the parties at the time
      of
      the execution of this Agreement or not. Employee hereby agrees to indemnify
      and
      save harmless the Released Parties from any actions, causes of action, claims,
      demands, damages, costs and expenses, including reasonable attorneys’ fees,
      incurred by or demanded from the Released Parties directly or indirectly arising
      out of or resulting from any act or omission made by Employee or Employee’s
      employees, agents or subcontractors. 

    

    4. Disclosure
      of Inventions, etc.
      Employee shall promptly disclose to the Company, in writing and form
      satisfactory to the Board of Directors thereof, all discoveries, developments,
      improvements and innovations, whether or not patentable, (hereinafter referred
      to as “Inventions”) conceived, developed, created, made or reduced to practice
      by the Employee prior to or following the date hereof so long as Employee shall
      be affiliated with the Company or any of its affiliates, which are in any way
      related to the business of the Company and whether conceived or made during
      regular working hours or any other time. The Employee shall likewise disclose
      to
      the Company any such Inventions conceived or made by others which may be of
      benefit to the Company, the knowledge of which the Employee obtained during
      the
      term hereof.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5. Assignment
      of Inventions, etc.
      Employee hereby assigns, transfers and conveys all of his rights, title and
      interest to or in any and all such Inventions to the Company. Employee further
      agrees to execute such documents and to perform such other actions and
      activities, at the expense of the Company, as may be necessary or desirable
      as
      determined by the Company’s Board of Directors thereof: (i) for the filing of
      patent applications and issuance of patents (both domestic and foreign) for
      such
      Inventions; and (ii) to complete exclusive ownership by the Company of such
      Inventions and patent applications and patents. It is mutually understood and
      agreed that the term “Inventions” as used herein shall be construed to include
      all forms of intellectual property and the term “patent” as used herein shall be
      interpreted to include all forms of intellectual property protection, including,
      without limitation, patents, copyrights, international copyrights and literary
      property.

    

    6. Confidentiality
      and Non-Disclosure.
      Employee understands and acknowledges that the Company and its affiliates have
      developed and rely on contacts, confidential information and trade secrets
      relating to the business and affairs of the Company and its affiliates and
      that
      such information is the sole and exclusive property of the Company
      (“Confidential Information”). The Confidential Information includes matters
      known to the Company and its Affiliates prior to the date of this Agreement
      as
      well as matters newly acquired by the Company and its affiliates during the
      term
      of this Agreement. Employee agrees to hold all Inventions and Confidential
      Information as trade secrets and proprietary information of the Company and
      further warrants never to use any such Inventions or Confidential Information
      to
      compete with or against the Company either during the term of this Agreement
      or
      at any time thereafter. Employee shall hold in confidence, not use, except
      for
      the benefit of the Company, and not disclose to anyone without prior written
      authorization by the Company, any and all Confidential Information, written,
      oral or otherwise, relating to the Inventions or the business or operations
      of
      the Company, or its clients or customers, including, without limitation,
      scientific or technical information, market or marketing information, personal
      contacts, designs, processes, procedures, formulas or improvements which
      Employee may obtain prior to, during or subsequent to the term of this
      Agreement. Employee further agrees to hold and use articles representing or
      disclosing said Inventions and Confidential Information only in such manner
      as
      would benefit and protect the Company including holding such information in
      confidence until the release thereof is authorized by the Company’s Board of
      Directors. Employee shall deliver or return to the Company, upon its request,
      all information in tangible form which Employee received from the Company
      including all copies thereof. Employee further warrants that during the term
      hereof he will maintain full fidelity to the stockholders of the Company and
      guard and protect the interests thereof with the same prudence and diligence
      as
      he would his own. Title in any information or data received from the Company,
      including all copies thereof, shall be in and remain with the Company at all
      times. Except as otherwise expressly provided herein, the provisions of this
      paragraph shall be effective and remain in full force and effect for a period
      of
      five (5) years from the date hereof.

     

    
      7. Non-Competition
        Restriction.
        Employee
        recognizes and understands that his position with the Company and his access
        to
        protected information will enable Employee to compete with the Company on
        an
        unfair basis, thereby damaging the Company and the Company’s goodwill. Because
        the Company’s goodwill is a valuable and unique asset and because of the highly
        technical and proprietary nature of the Company’s business, it is necessary to
        afford the Company fair protection for that asset and its business. Accordingly,
        and as a material inducement for the Company to hire Employee and pay Employee
        the salary and other benefits associated with Employee’s employment, Employee
        covenants and agrees that commencing on the date of this Agreement and
        continuing for a period of one (1) year from the date hereof, Employee will
        not
        directly, or indirectly, either as a consultant, owner, independent contractor,
        officer, director, principal, agent, trustee or through the agency of any
        individual or entity, engage in the water heater or water heating systems
        business within the United States or within any territory where the Company
        has
        water heater contracts. Although the Company anticipates an international
        clientele and possesses a legitimate interest in protecting goodwill in that
        geographic territory, the geographic scope of this non-competition covenant
        will
        be limited to locations in which the Company sells its products and services
        as
        well as the entire United States of America. 

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    8. Disclosure
      to Media.
      Employee agrees not to advertise or make any public announcements to the media
      or to others regarding the existence of this Agreement or the performance
      hereunder without the prior written approval of the Company. 

    

    9. Non-Disparagement.
      Employee agrees that neither he, nor any person or entity in active concert
      or
      participation with him or who is acting under his direction, will make any
      statement or otherwise communicate with anyone (including, but not limited
      to,
      any vendors, suppliers, business affiliates and associates, partners, employees,
      shareholders, Employees, advisors, distributors, sales representatives,
      customers, underwriters, attorneys and agents) in a manner that is disparaging
      to the Company or any of the Released Parties.

    

    10. Injunctive
      Relief.
      Employee agrees that the breach by him of any of the foregoing covenants
      contained in paragraphs 5 through 9 hereof is likely to result in irreparable
      harm, directly or indirectly, to the Company and therefore Employee consents
      and
      agrees that if he violates any of such obligations, the Company shall be
      entitled, among and in addition to any other rights or remedies available
      hereunder or otherwise, to temporary and permanent injunctive relief to prevent
      Employee from committing or continuing a breach of such
      obligations.

    

    11. Severability,
      Reformation.
      It is
      the desire, intent and agreement of the parties hereto that the restrictions
      placed upon Employee by paragraphs 5 through 10 hereof shall be enforced to
      the
      fullest extent permissible under the law and public policy applied by any
      jurisdiction in which enforcement is sought. Accordingly, if, and to the extent
      that, any portion of the covenants contained in these paragraphs shall be
      adjudicated to be unenforceable, such portion shall be deemed amended to delete
      therefrom or to reform the portion thus adjudicated to be invalid or
      unenforceable, such deletion or reformation to apply only with respect to the
      operation of such portion in the particular jurisdiction in which such
      adjudication is sought.

     

    
      12. Attorneys’
        Fees, etc.
        If it
        shall be necessary for either party to place this Agreement in the hands
        of an
        attorney at law for enforcement of any of the provisions hereof, the
        non-prevailing party in such matter shall be liable to the prevailing party
        for
        all costs, expenses and reasonable attorney’s fees incurred in connection
        therewith, irrespective of whether suit shall be commenced. The costs, expenses
        and attorney’s fees shall include, but not be limited to, costs, expenses and
        attorney’s fees incurred on appeal or in administrative
        proceedings.

      

      13. No
        Withholding of Taxes.
        Employee acknowledges that the issuance of the Shares shall constitute taxable
        compensation to him and that any tax liability related thereto shall be the
        sole
        responsibility of Employee. By reason of the independent status of Employee,
        the
        Company is not required to and will not withhold federal, state or local
        income
        or any other tax from any payment to Employee under this Agreement and may
        file
        information returns with the United States Internal Revenue Service or similar
        state or local agencies regarding such payments under conditions imposed
        by
        applicable law or regulations.

      

      14. Notices.
        Any
        notices or communications hereunder must be in writing, delivered in person
        or
        transmitted by Registered or Certified United States Mail, postage prepaid,
        return receipt requested, addressed as follows, unless such address is changed
        by written notice:

      

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

    

    

     

     

    
      	 	 If to Company:	Tankless Systems Worldwide,Inc.
              7650
                E. Evans Rd., Suite C

              Scottsdale,
                Az 85260

            	 
	 	 	 	 
	 	  If
              to the Employee: 	Michael D. Stebbins	 

    

     

    15. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Arizona. 

    

    16. Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective successors and assigns. The Company may, from time to
      time,
      in its sole discretion, assign all or part of its rights, duties and obligations
      herein to any of its affiliates or subsidiaries, without Employee’s prior
      consent.

    

    17. Third-Party
      Beneficiaries.
      To the
      extent appropriate, the Released Parties, and each of them, shall be deemed
      third-party beneficiaries to this Agreement.

    

    

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    18. Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties hereto and
      supersedes any prior understandings, commitments, or agreements, written or
      oral, with respect to the subject hereof. This Agreement shall not be modified,
      varied or amended except by written instrument of subsequent date duly executed
      by an authorized representative of each party. If any court of competent
      jurisdiction finds any provision of this Agreement invalid, unenforceable,
      or
      illegal, any such finding shall not affect the validity of the remaining
      provisions which shall remain in full force and effect. 

    

    19. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same
      instrument.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
      counterparts effective as of the date first written above.

    

     

    
      	 “COMPANY”	 	 	 “EMPLOYEE”
	 	 	 	 
	
              TANKLESS
                SYSTEMS WORLDWIDE, INC.,  

              a
                Nevada corporation     

            	 	 	 
	 	 	 	 
	/s/ Thomas
              Kreitzer	 	 	/s/ Michael
              D. Stebbins
	
              
Thomas
              Kreitzer, CEO	 	 	
              
Michael
              D. StebbinsExhibit 10.125

AMENDMENT NO. 2 TO AGREEMENT AND PLAN OF MERGER

          This Amendment No. 2 to Merger Agreement dated as of July 5, 2006 (this “Amendment”), among Halo Technology Holdings, Inc., a Nevada corporation (“Parent”), UCA Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”) and Unify Corporation, a Delaware corporation (the “Company”).

WITNESSETH:

          WHEREAS, Parent,
Merger Sub and the Company are parties to that certain Agreement and Plan of
Merger, dated as of March 14, 2006 (as amended, the “Merger
Agreement”), and desire to amend the Merger Agreement as set forth
herein.

          NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and agreements herein
contained, and intending to be legally bound hereby, the parties hereto do
hereby agree as follows (capitalized terms used but not defined herein have the
meanings ascribed to such terms in the Merger Agreement):

	
  

1.  Amendment to Section 2.1(b).  Section 2.1(b) is hereby
amended and replaced by the following:
 
	
  
 
  
	
  
 
  	
  

(b) Conversion of Company Common Stock. Subject to Sections 2.1(e)
and 2.2(e), each issued and outstanding share of Company Common Stock (other
than shares to be cancelled in accordance with Section 2.1(a) and shares
exercising appraisal rights in accordance with Section 2.1(f)) at the Effective
Time shall be converted into the right to receive 0.595 of one share of Parent
Common Stock (the “ Exchange Ratio “). The shares of Parent Common
Stock issued in exchange for Company Common Stock, together with the Substitute
Options and the Substitute Warrants, constitutes the “ Merger Consideration
..” As of the Effective Time and without any action on the part of the
holders thereof, all such shares of Company Common Stock shall no longer be
outstanding and shall automatically be cancelled and retired and shall cease to
exist, and each holder of a certificate or certificates that immediately prior
to the Effective Time represented outstanding shares of Company Common Stock
(the “ Certificates “) shall cease to have any rights with respect
thereto, except the right to receive (i) the Merger Consideration and
(ii) certain dividends and other distributions in accordance with
Section 2.2(c).
 
	
   
  	
  
 
  
	
  
2.    Amendment to Section 2.1(e).  Section 2.1(e) is hereby amended and   replaced by the following:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(e)  Adjustments to Exchange Ratio.  The Exchange Ratio shall be adjusted to   reflect appropriately the effect of any stock split, reverse stock split,   stock dividend (including any dividend or distribution of securities   convertible into or exercisable or exchangeable for Parent Common Stock or   Company Common Stock), extraordinary dividend, reorganization,   recapitalization, reclassification, combination, exchange of shares or other   like change with respect to Parent Common Stock or Company Common Stock   occurring 
  

	
  
 
  	
  

or having a record date on or after the date hereof and prior to the Effective
Time.  Further, in the event that at the Effective Time the Company has
cash on hand which is less than Two Million One Hundred Thousand Dollars
($2,100,000), the Exchange Ratio shall be reduced to the ratio determined by
dividing (a) 17,478,840 minus the quotient of (x) (A) Two Million One Hundred
Thousand Dollars ($2,100,000) minus (B) the amount of cash the Company has on
hand at the Effective Time, divided by (y) $1.20, by (b) 29,376,201.

	  

	
  3.    Amendment to Section 7.2.  Section 7.2 is hereby amended by adding   the following Section 7.2(g) to the end thereof:
  
	
  
 
  
	
  
 
  	
  

(g)  Adjustments to Exchange Ratio.  At the Effective Time,
the Company shall have cash on hand in an amount equal to or in excess of Two
Million One Hundred Thousand Dollars ($2,100,000).
 
	
  
 
  	
  
 
  
	
  
4.    Amendment to Section 7.3(e).  Section   7.3(e) is hereby amended and replaced by the following:
  
	
  
 
  
	
  
 
  	
  

(e)  Additional Investment.  Parent shall have received at
least Three Million Dollars ($3,000,000) in new money equity investment (in
addition to any investment made by Special Situations Funds) between the date
hereof and the Effective Time.”
 
	
  
 
  	
  
 
  
	
  
5.    Amendment to Section 7.3(f).  Section   7.3(f) is hereby amended and replaced by the following:
  
	
  
 
  
	
   
  	
  
(f)    Capitalization.  On or prior to the Effective Time (i) the holders of   outstanding shares of the Parent’s Preferred Stock (other than the Parent’s   Series D Preferred Stock) shall have converted such shares of preferred stock   into common stock of Parent, (ii) the holders of convertible promissory notes   of Parent listed on Schedule 7.3(f)(i) shall have converted such promissory   notes into shares of Common Stock of Parent, and (iii) the holders of the   promissory notes of Parent listed on Schedule 7.3(f)(ii) shall have   restructured the payment terms to be no less favorable to Parent than those   described on Schedule 7.3(f)(ii).
  
	
  
 
  	
  
 
  
	
  

6.  Amendment to Schedule 7.3(f).  Schedule 7.3(f) is hereby
amended and replaced by the schedule attached hereto as Exhibit A.

	
  
 
  
	
  

7.  Amendment to Substitute Warrant. The first paragraph of the
Substitute Warrant is hereby amended by replacing the number “$1.8363”
with the number “$1.356.”
 
	
  
 
  
	
  
8. Miscellaneous.
  
	
  
 
  
	
  

          (a)  The
validity, construction and performance of this Amendment, and any action arising
out of or relating to this Amendment shall be governed by the laws of the State
of Delaware, without regard to the laws of the State of Delaware as to choice or
conflict of laws.
 

-2-

          (b)  Except as
modified herein, all other terms and provisions of the Merger Agreement are
unchanged and remain in full force and effect.

          (c)  The
captions contained in this Amendment are for convenience of reference only,
shall not be given meaning and do not form part of this Amendment.

          (d)  This
Amendment may be executed in counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same
instrument.  This Amendment shall become effective when each party to this
Amendment shall have received a counterpart hereof signed by the other parties
to this Amendment.

          (e)  This
Amendment shall be binding upon any permitted assignee, transferee, successor or
assign to any of the parties hereto.

          IN WITNESS WHEREOF,
each of the parties has executed this Amendment as of the date first set forth
above.

	
  
 
  	
  
PARENT:
  
	
  
 
  	
  
 
  
	
   
  	
  
HALO TECHNOLOGY   HOLDINGS, INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:  
  	
  
Ernest C.   Mysogland
  
	
  
 
  	
  
Title:  
  	
  
Executive   Vice President
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
MERGER SUB:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
UCA MERGER   SUB, INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:  
  	
  
Ernest C.   Mysogland
  
	
  
 
  	
  
Title:  
  	
  
President   and Sole Director
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
COMPANY:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
UNIFY   CORPORATION
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:  
  	
  
Todd Wille
  
	
  
 
  	
  
Title:  
  	
  
President
  

-3-

Exhibit A

SCHEDULE 7.3(f)

(i) Convertible Promissory Notes of Parent to be converted into Parent Common Stock:

	
  
 
  	
  
1.
  	
  
Convertible   notes issued January 27 and 30, 2006 in the aggregate principal amount of   $1,375,000.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
2.
  	
  
Convertible   notes issued January 4, 2006 in the aggregate principal amount of $700,000;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
3.
  	
  
Convertible   note issued January 4, 2006 in the principal amount of $67,500;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
4.
  	
  
Convertible   notes issued September and October, 2005 in the aggregate principal amount of   $1,150,000.
  

(ii) The following promissory notes and obligations of Parent to be restructured to provide that no amounts will be paid on these obligations prior to December 1, 2007 unless Parent has raised equity in excess of the new equity contemplated by this Agreement, and that payment on these obligations will only be made if after such payment Parent will have cash and receivables in excess of its current liabilities (other than deferred revenue):

	
  
 
  	
  
1.
  	
  
The   obligations of Parent to ISIS Capital Management, LLC to pay a fee in the   original amount of $1,250,000 pursuant to that certain Purchase Agreement   Assignment between ISIS and Parent dated October 14, 2004.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  2.
  	
  Subordinated   Secured Promissory Note, dated January 31, 2005 made by Parent in favor of   Crestview Capital Master, LLC in the outstanding principal amount of   $2,000,000.
  
	
   
  	
   
  	
   
  
	
   
  	
  3.
  	
  Subordinated   Secured Promissory Note, dated January 31, 2005 made by Parent in favor of   CAMOFI Master LDC in the outstanding principal amount of $500,000.
  

-4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]