Document:

digitalpost_ex1031.htm

Exhibit 10.31 

  EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the "Agreement") dated as of March 29, 2010 

(the "Date of this Agreement"), is made by and between DigitalPost Interactive, Inc., a

Nevada corporation (the "Employer"), and Michael Sawtell (the "Executive").

      WHEREAS, the Employer wishes to employ the Executive on the terms set

      forth below.

      WHEREAS, Executive wishes to accept such employment.

      Accordingly, the parties hereto agree as follows:

      1.    Term. The Employer hereby employs the Executive, and the Executive

hereby accepts such employment, for an initial term commencing as of the Date of

this Agreement and ending on the third anniversary of such date, unless sooner

terminated in accordance with the provisions below, and in Section 4 or Section 5; with

such employment to continue thereafter for successive one-year periods in

accordance with the terms of this Agreement on each anniversary of the Date of

this Agreement (subject to termination as aforesaid) unless either party

notifies the other party in writing not less than thirty (30) days before

expiration of the initial term and each annual renewal thereof (the period

during which the Executive is employed hereunder being hereinafter referred to

as the "Term") of an intent not to renew this Agreement.  To the extent Employer 

does not obtain a minimum of $1,500,000 in financing within 180 days of the Date of 

this Agreement (“Floor Amount”), this agreement shall terminate on such 180th day, 

except for Section 3.3 which shall remain valid pursuant to the terms of this Agreement.

  If financing of at least $1,500,000 is obtained by the Company within the 180 days of the 

Date of this Agreement, then this Agreement shall remain valid and in full force.

      2.    Duties. During the Term, the Executive shall be employed by the

Employer as its Chief Executive Officer (“CEO”), and as such, the Executive shall

faithfully perform for the Employer the duties and have the powers customary for

such position, including general financial oversight of the Employer's

operations and preservation of the Company's assets. During the Term, the

Executive shall be required to report to the Board of Directors of the Employer 

(the "BOD"). The Executive shall devote substantially all of his business time and effort to

the performance of his duties hereunder, and shall work primarily at the

Employer's main business offices.

      3.    Compensation.

            3.1   Salary. The Employer shall pay the Executive during the Term a

salary at the rate of Two Hundred Twenty Thousand Dollars ($220,000) per annum

(the "Annual Salary"), in accordance with the customary payroll practices of the

Employer applicable to senior executives, provided the payments are no less

frequent than monthly (or, if there is no such policy, payments shall be

  

  

  

semi-monthly). The Annual Salary shall be annually reviewed by the Employer for

possible increases. The Annual Salary shall be subject to possible further

increase from time to time in the discretion of the BOD or such committee of the

Board as they shall designate for such purpose from time to time. Any increased

Annual Salary shall thereupon be the "Annual Salary" for the purposes hereof.

The Executive's Annual Salary shall not be decreased without his prior written

consent at any time during the Term.

            3.2   Incentive Compensation. During the Term, the

Executive shall be eligible to receive, in addition to his Annual Salary, an

annual bonus (the "Bonus") of up to 35% of the Annual Salary. The amount of such 

Bonus and any performance standards or goals required to be attained in order to 

receive such Bonus shall be set by the BOD or such committee of the Board as they 

shall designate for such purpose from time to time based on, but not limited to, any of 

the following criteria: (i)amount of capital raised for the Employer; (ii) positioning of the 

Employer for a secondary public offering of the Employer's common stock or transfer of

 listing to a national exchange; (iii) valuation attained for the Employer, as measured by 

arm's length investment transactions or market capitalization; (iv) periodic revenues as 

measured by total transaction dollars; and (v) entering into key strategic relationships. 

The Bonus shall be declared on or before the thirtieth day following each quarterly period, 

and paid not later than the last business day of the quarter following the quarter for which the 

Bonus is being paid.  Paid bonus as defined in this section 3.2 only is subject to final approval of

 the board of directors.

           3.3   Stock Options. The Company grants to Executive, as incentive to enter this agreement, an 

option to purchase 3,500,000 shares (the "Options") at an exercise price of $.05 per share.  This grant is 

in addition to the all previous options granted to Executive.  The Options may be intended to qualify as 

"incentive stock options" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 

Such options shall have an exercise price per share as stated in the stock option agreement, which is equal to or 

exceeds the agreed fair market value of shares of Employer's stock as of the date of the stock option agreement. 

Such Options shall vest according to the stock option agreements. The vesting period shall be subject to possible 

acceleration in the discretion of the CEO or such committee of the Board as they shall designate for such purpose 

from time to time. Such options shall become fully vested immediately upon (i) a Change of Control, defined below, o

f the Employer, or (ii) a termination of the executive by Employer without Cause (defined in Section 5.1(a) below, or a 

termination due to resignation by Executive for Good Reason (defined in Section 5.2(a) below), if the same occurs within 

120 days prior to the execution and delivery of an acquisition, merger, consolidation or other agreement which results in a 

Change of Control. For purposes of this Agreement "Change of Control" shall be deemed to have occurred if, as a result of 

a tender offer, other acquisition, merger, consolidation or sale or transfer of assets, any person(s) (as used in Sections

 13(d) or 14(d) of the Securities Exchange Act of 1934 ("SEA")) becomes the beneficial owner (as defined in Rule 13(d)-3 

of the SEA) of a total of fifty percent (50%) or more of either the outstanding shares of Employer's stock or Employer's a

ssets; provided, however, that a change of control shall not be deemed to have occurred if a person who beneficially 

owned 50% or more of the Employer's stock as of the effective date of this Agreement continued to

  

  

  

do so during the term of this Agreement. The terms of this Section 3.3 shall be included in

 the applicable stock option agreement between Employer and Executive relating to the issuance 

of the Options.  The Options granted under this agreement, any previous options granted to 

Executive prior to this agreement and any other convertible securities or warrants previously 

issued to Executive shall be changed whereby the exercise price or conversion price shall 

become the same price per share equal to any lower priced subsequent financing made after the date of 

this agreement.  For example, if at a later date after this agreement the Company issues common 

stock for $.025 per share, then the exercise price of the Options shall be changed from $.05 per 

share to $.025 per share with all other terms of the Options remaining the same, except for the 

lowering of the exercise price.

            3.4   Benefits. Except otherwise provided herein, the Executive

shall be entitled to participate in any group life, medical or disability

insurance plans, health programs, retirement plans, fringe benefit programs and

similar benefits that may be available to other senior executives of the

Employer generally, on the same terms as such other executives, to the extent

that the Executive is eligible under the terms of such plans or programs as they

may be in effect from time to time. Employer will provide coverage for the

Executive under the Employer's health benefits plan and will pay 100% of the

cost of spouse or dependent coverage. Coverage under the health benefits plan 

will be in effect commencing with the first month following ninety (90) days of employment.

3.5   Expenses. The Employer shall pay or reimburse the Executive

for all ordinary and reasonable out-of-pocket expenses actually incurred (and,

in the case of reimbursement, paid) by the Executive during the Term in the

performance of the Executive's services under this Agreement, provided that the

Executive submits proof of such expenses, with the properly completed forms as

prescribed from time to time by the Employer, no later than 30 days after the

end of the monthly period in which such expenses have been so incurred. In

addition, the Employer will pay the Executive's reasonable basic relocation

expenses, if any, which shall consist of airfare, moving company expenses and

hotel stays during the transition period, such expenses to be approved in

advance, in writing, by the Company.

           3.6   Car Allowance. The Executive shall be paid nine hundred ($900) per month as an automobile 

allowance which serves as additional incentive to sign this Agreement and hold the office designated herein.  

Payment of the monthly $900 car allowance shall begin the same month this agreement is signed.

3.7 Paid Time Off.  Executive is eligible for paid vacations, personal holidays, and sick leave.  

The Employee handbook describes Employers current policies regarding these benefits.  As a member of 

Employers executive management team, Executive will be eligible to accrue up to five (5) weeks annual paid 

vacation in addition to those paid holidays recognized in Employers policies.

3.8 Unpaid Time Off.  As additional benefit to Executive, in addition to the paid time off in Section 

3.10, Employer shall allow Executive up to two (2) additional

  

  

  

weeks of unpaid vacation annually.  It is Executives sole discretion to take or not take unpaid time off.  

Scheduling of such unpaid time off shall be approved by the CEO.

      4.    Termination upon Death or Disability. If the Executive dies during

the Term, the Term shall terminate as of the date of death, and the obligations

of the Employer to or with respect to the Executive shall terminate in their

entirety upon such date except as otherwise provided under this Section 4. If

the Executive becomes disabled for purposes of the long-term disability plan of

the Employer for which the Executive is eligible, or, in the event that there is

no such plan, if the Executive by virtue of ill health or other disability is

unable to perform substantially and continuously the duties assigned to him for

more than 180 consecutive or non-consecutive days out of any consecutive

12-month period, then the Employer shall have the right, to the extent permitted

by law, to terminate the employment of the Executive upon notice in writing to

the Executive. Upon termination of employment due to death or disability, (i)

the Executive (or the Executive's estate or beneficiaries in the case of the

death of the Executive) shall be entitled to receive any Annual Salary and other

benefits earned and accrued under this Agreement prior to the date of

termination (and reimbursement under this Agreement for expenses incurred prior

to the date of termination), including, but not limited to a pro-rata Bonus for

the year of termination (which in no event shall be less than a similar pro-rata

portion of the Executive's bonus for the preceding year) to be paid at such time

as Bonuses are ordinarily paid; (ii) in the case of termination due to

disability, the Executive shall be entitled to receive his Annual Salary for one year following such 

termination, or the period until long term disability insurance benefits commence under 

disability coverage furnished by the Employer to the Executive; and (iii) the Executive (or, in the case of

his death, his estate and beneficiaries) shall have no further rights to any

other compensation or benefits hereunder on or after the termination of

employment, or any other rights hereunder, except as otherwise provided in the

plans and policies of the Employer.

      5.    Certain Terminations of Employment.

            5.1   Termination for Cause; Termination of Employment by the

Executive without Good Reason.

            (a)   For purposes of this Agreement, "Cause" shall mean the

                  Executive's:

                  (i)   conviction of (or pleading nolo contendere to) a felony

      involving the crime of theft or a related or similar act of unlawful

      taking, or a felony involving the federal or California securities or

      pension laws, or any felony , which results in material economic harm to

      the Employer;

                  (ii)  engagement in the performance of his duties hereunder or

      otherwise to the material and demonstrable detriment of the Employer, in

  

  

  

      willful misconduct, willful or gross neglect, fraud, misappropriation or

      embezzlement;

                  (iii) After notice from the BOD, and, if

      requested by Executive, the opportunity to be heard by the BOD, the failure

 to adhere to the lawful and reasonable directions

      of the Board that are consistent with the terms of this Agreement, or the

      failure to devote substantially all of the business time and effort to the

      Employer (except for any activities expressly authorized by the Employer);

                  (iv)  material breach of any of the provisions of Section 6,

      other than inadvertent breaches; or

                  (v)   breach in any material respect of the terms and

      provisions of this Agreement and failure to cure such breach within thirty

      (30) days following written notice from the Employer specifying such

      breach; provided however, if Executive delivers written notice to Employer

      during the 30 day cure period requesting to be heard at a meeting of the

      BOD, his termination under this Section 5.2(a)(v) shall not

      be effective until such BOD meeting at which Executive had

      an opportunity to be heard.

provided that Cause shall not exist except on written notice given to the

Executive at any time not more than 60 days following the occurrence of any of

the events described above (or, if later, the Employer's knowledge thereof),

which events in any case must have occurred after the effective date of this

Agreement.

            (b)   The Employer may terminate the Executive's employment

hereunder for Cause, and the Executive may terminate his employment for any or

no reason on at least 30 days' and not more than 60 days' written notice given

to the Employer. If the Employer terminates the Executive for Cause, or the

Executive terminates his employment and the termination by the Executive is not

covered by Section 4 or 5.2, (i) the Executive shall receive Annual Salary and

other benefits earned and accrued under this Agreement prior to the termination

of employment (and reimbursement under this Agreement for expenses incurred

prior to the termination of employment); and (ii) the Executive shall have no

further rights to any other compensation or benefits hereunder on or after the

termination of employment, or any other rights hereunder, except as otherwise

provided in the plans and policies of the Employer.

            5.2   Termination by the Employer without Cause; or by Resignation by the Executive

for Good Reason.

            (a)   For purposes of this Agreement, "Good Reason" shall mean,

unless otherwise consented to in writing by the Executive;

  

  

  

                  (i)   a reduction in Annual Salary or in benefits of the

      Executive, or the failure of the Employer timely to make any Annual Salary payment due to the Executive, 

provided that such deferral or failure to pay continues  unremedied for  more than thirty (30) days;

                  (ii)  any action by the Employer that results in a material diminution in the Executive's position, authority, 

duties or responsibilities; provided that the appointment to the office of Chief  Executive Officer of another person 

approved by the Executive shall be deemed not to be a material diminution in the Executive's position,  authority, 

duties or responsibilities;

                  (iii) a material breach of any provision of this Agreement by

      the Employer or;

                  (iv)  a failure of the Employer to have a successor entity

      specifically assume this Agreement.

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist

unless notice of termination on account thereof (specifying a termination date

no later than 30 days from the date of such notice) is given no later than 60

days after the time at which the event or condition purportedly giving rise to

Good Reason first occurs or arises (or when the Executive first becomes aware of

such circumstances); and (ii) if there exists (without regard to this clause

(ii)) an event or condition that constitutes Good Reason, the Employer shall

have 30 days from the date notice of such a termination is given to cure such

event or condition and, if the Employer does so fully cure such event or

condition, such event or condition shall not constitute Good Reason hereunder.

            (b)   The Employer may terminate the Executive's employment at any

time for any reason or no reason and the Executive may terminate the Executive's

employment with the Employer for Good Reason. A notice of non-renewal shall

constitute a termination of employment by the Employer without Cause.

            (c)   If the Employer terminates the Executive's employment and the

termination is not covered by Section 4 or 5.1, or the Executive terminates his

employment for Good Reason, the Executive shall receive:

                  (i)   Annual Salary and other benefits earned and accrued

      under this Agreement prior to the termination of employment (and

      reimbursement under this Agreement for expenses incurred prior to the

      termination of employment);

                  (ii)  the greater of (A) the Annual Salary for the unexpired

      Term of this Agreement, payable in payments with standard payroll periods,

       or (B) two (2) times the Annual Salary payable in payments with standard payroll periods;

                  (iii) not applicable;

  

  

  

                  (iv)  reimbursement for COBRA payments equal to employee's

      regular monthly contributions toward the Executive's health insurance

      benefits for the twenty four (24) month period following the termination date

      if the Executive elects COBRA benefits, and;

                  (v)   the right to exercise any or all vested stock options

      for a period of twenty four (24) months after the effective date of termination

      of Executive's employment; provided however, (A) in the event the

      termination occurs within 120 days of the execution of a Change of Control

      agreement as provided in Section 3.3 above, vesting of all options shall

      be accelerated as provided in Section 3.3 above, and (B) in the event the

      termination occurs at a time not within such 120 day period, for purposes

      of this provision, all unvested options that would have vested had this

      Agreement remained in force through the end of the initial Term, shall be

      fully vested immediately prior to the termination under this Section

      5.2(c); The provisions of this subparagraph (v) shall be included in any

      stock option agreement between the Employer and the Executive.

      In order to be eligible to receive the benefits specified under sections

5.2(c)(ii) - (iv), the Executive must execute a general release of claims in a

form acceptable to the Employer, which shall not apply to the Employer's

obligations described above in this Section 5.2(c).

      6.    Invention, Non-Disclosure and Non-Competition.

            6.1   Inventions and Patents.

            (a)   The Executive will promptly and fully disclose to the Employer

any and all inventions, discoveries, improvements, ideas, developments, designs,

products, formulas, software programs, processes, techniques, technology,

know-how, negative know-how, data, research, technical data and original works

of authorship (whether or not patentable or registrable under patent, copyright

or similar statutes and including all rights to obtain, register, perfect and

enforce those proprietary interests) that are related to or useful in the

Employer's present or future business or result from use of property owned,

leased, or contracted for by the Employer and which the Executive develops,

makes, conceives or reduces to practice during the Executive's employment by the

Employer, either solely or jointly with others (collectively, the

"Developments"). All such Developments shall be the sole property of the

Employer, and the Executive hereby assigns to the Employer, without further

compensation, all of the Executive's right, title and interest in and to such

Developments and any and all related patents, patent applications, copyrights,

copyright applications, trademarks, service marks and trade names in the United

States and elsewhere.

            (b)   The Executive shall disclose promptly to an officer or to

attorneys of the Employer in writing any inventions, discoveries, improvements,

  

  

  

ideas, developments, designs, products, formulas, software programs, processes,

techniques, technology, know-how, negative know-how, data, research, technical

data and original works of authorship, whether or not patentable or registrable

under patent, copyright or similar statutes, the Executive may conceive, make,

develop or work on, in whole or in part, solely or jointly with others during

the Executive's employment, for the purpose of permitting the Employer to determine

whether they constitute Developments. The Employer shall receive such

disclosures in confidence.

            (c)   The Executive will keep and maintain adequate and current

written records of all Developments (in the form of notes, sketches, drawings

and as may be specified by the Employer), which records shall be available to

and remain the sole property of the Employer at all times.

            (d)   The Executive will assist the Employer in obtaining and

enforcing patent, copyright, trademark, service marks and other forms of legal

protection for the Developments in any country. Upon request, the Executive will

sign all applications, assignments, instruments and papers and perform all acts

necessary or desired by the Employer to assign all such Developments fully and

completely to the Employer and to enable the Employer, its successors, assigns

and nominees, to secure and enjoy the full and exclusive benefits and advantages

thereof.

            (e)   The Executive understands that the Executive's obligations

under this section will continue after the termination of the Executive's

employment with the Employer and that during the Executive's employment the

Executive will perform such obligations without further compensation, except for

reimbursement of expenses incurred at the request of the Employer. The Executive

further understands that if the Executive is not employed by the Employer as an

employee at the time the Executive is requested to perform any obligations under

this section, the Executive shall receive for such performance a reasonable per

diem fee, as well as reimbursement of any expenses incurred at the request of

the Employer.

            (f)   Any provision in this Agreement requiring the Executive to

assign the Executive's rights in all Developments shall not apply to an

invention that qualifies fully under the provisions of California Labor Code

section 2870, the terms of which are set forth below:

                  (i)   Any provision in an employment agreement which provides

      that an employee shall assign, or offer to assign, any of his or her

      rights in an invention to his or her employer shall not apply to an

      invention that the employee developed entirely on his or her own time

      without using the employer's equipment, supplies, facilities, or trade

      secret information except for those inventions that either:

                        (1)   Relate at the time of conception or reduction to

      practice of the invention to the employer's business, or actual or

  

  

  

      demonstrably anticipated research or development of the employer; or

                        (2)   Result from any work performed by the employee for

      the employer.

            (ii)  To the extent a provision in an employment agreement purports

      to require an employee to assign an invention otherwise excluded from

      being required to be assigned under subdivision (i), the provision is

      against the public policy of this state and is unenforceable.

            6.2   Proprietary Information.

            (a)   The Executive recognizes that the Executive's relationship

with the Employer is one of high trust and confidence by reason of the

Executive's access to and contact with the trade secrets and confidential and

proprietary information of the Employer including, without limitation,

information not previously disclosed to the public regarding current and

projected revenues, expenses, costs, profit margins and any other financial and

budgeting information; marketing and distribution plans and practices; business

plans, opportunities, projects and any other business and corporate strategies;

product information; names, addresses, terms of contracts and other arrangements

with customers, suppliers, agents and employees of the Employer; confidential

and sensitive information regarding other employees, including information with

respect to their job descriptions, performance strengths and weaknesses, and

compensation; and other information not generally known regarding the business,

affairs and plans of the Employer (collectively, the "Proprietary Information").

The Executive acknowledges and agrees that Proprietary Information is the

exclusive property of the Employer and that the Executive shall not at any time,

either during the Executive's employment with the Employer or thereafter

disclose to others, or directly or indirectly use for the Executive's own

benefit or the benefit of others, any of the Proprietary Information.

            (b)   The Executive acknowledges that the unauthorized use or

disclosure of Proprietary Information would be detrimental to the Employer and

would reasonably be anticipated to materially impair the Employer's value.

            (c)   The Executive's undertakings and obligations under this

Section 6.2 will not apply, however, to any Proprietary Information which: (a)

is or becomes generally known to the public through no action on the Executive's

part, (b) is generally disclosed to third parties by the Employer without

restriction on such third parties, (c) is approved for release by written

authorization of the Board, (d) is known to the Executive other than as a result

of work performed for the Employer, or (e) is required to be disclosed by law or

governmental or court process or order.

            (d)   Upon termination of the Executive's employment with the

Employer or at any other time upon request, the Executive will promptly deliver

to the Employer all notes, memoranda, notebooks, drawings, records, reports,

  

  

  

written computer code, files and other documents (and all copies or

reproductions of such materials) in the Executive's possession or under the

Executive's control, whether prepared by the Executive or others, which contain

Proprietary Information. The Executive acknowledges that this material is the

sole property of the Employer.

            6.3   Covenant Not to Compete.

            (a)   During the time that this Agreement is in effect, the

Executive shall not directly or indirectly:

                  (i)   own, engage in, conduct, manage, operate, participate  in, be employed by, be connected 

in any manner whatsoever with, or render  services or advice to (whether for compensation or without 

compensation), any other person or  business entity which, in the sole judgment of the Employer, directly 

or  indirectly competes with the Business of the Employer (as hereinafter defined); or

                  (ii)  recruit or otherwise solicit or induce any employee of

      the Employer to terminate his or her employment with, or otherwise cease

      his or her relationship with, the Employer in order to join any person or

      entity which, in the sole judgment of the Employer, competes with the

      Business of the Employer.

            (b)   For a period of 12 months after the expiration or termination

of this Agreement, the Executive shall not directly or indirectly recruit or

otherwise solicit or induce any employee of the Employer to terminate his or her

employment with, or otherwise cease his or her relationship with, the Employer

in order to join any person or entity which, in the sole judgment of the

Employer, competes with the business of the employer as engaged in at the

expiration or termination of this Agreement.

            (c)   The obligations set forth in paragraphs 6.3(a) and (b) above

shall not restrict the Executive's right to invest in the securities (not to

exceed 1% of the outstanding securities of any class) of any publicly-held

corporation in the management of which the Executive does not participate.

            (d)   For purposes of Section 6.3(a), "Business of the Employer"

means the business of Employer as engaged in internet website provider from time to time 

during the term] of this Agreement.

            6.4   Absence of Restrictions Upon Disclosure and Competition.

            (a)   The Executive hereby represents that, except as the Executive

has disclosed in writing to the Employer on Exhibit A attached hereto, the

Executive is not bound by the terms of any agreement with any previous employer

or other party to refrain from using or disclosing any trade secret or

confidential or proprietary information in the course of the Executive's

employment with the Employer or to refrain from competing, directly or

  

  

  

indirectly, with the business of such previous employer or any other party.

            (b)   The Executive further represents that the Executive's

performance of all the terms of this Agreement and as an employee of the

Employer does not and will not breach any agreement to keep in confidence

proprietary information, knowledge or data acquired by the Executive in

confidence or in trust prior to his employment with the Employer, and the

Executive will not disclose to the Employer or induce the Employer to use any

confidential or proprietary information or material belonging to any previous

employer or others.

            6.5   Other Obligations. The Executive acknowledges that the

Employer from time to time may have agreements with other persons or with the

U.S. Government or agencies thereof, which impose obligations or restrictions on

the Employer regarding inventions made during the course of work under such

agreements or regarding the confidential nature of such work. The Executive

agrees to be bound by all such obligations and restrictions which are made

known to the Executive and to take all action necessary to discharge the

obligations of the Employer under such agreements.

            6.6   Rights and Remedies upon Breach. The Executive acknowledges

and agrees that any breach by him of any of the provisions of Section 6 (the

"Restrictive Covenants") would result in irreparable injury and damage for which

money damages may not provide an adequate remedy. Therefore, if the Executive

breaches any of the provisions of Section 6, the Employer shall have the

following rights and remedies, each of which rights and remedies shall be

independent of the other and severally enforceable, and all of which rights and

remedies shall be in addition to, and not in lieu of, any other rights and

remedies available to the Employer under law or in equity (including, without

limitation, the recovery of damages) the right and remedy to have the

Restrictive Covenants specifically enforced (without posting bond and without

the need to prove damages) by any court having equity jurisdiction, including,

without limitation, the right to an entry against the Executive of restraining

orders and injunctions (preliminary, mandatory, temporary and permanent) against

violations, threatened or actual, and whether or not then continuing, of such

covenants.

      7.    Other Provisions.

            7.1   Severability. The Executive acknowledges and agrees that (i)

he has had an opportunity to seek advice of counsel in connection with this

Agreement and (ii) the Restrictive Covenants are reasonable in geographical and

temporal scope and in all other respects. If it is determined that any of the

provisions of this Agreement, including, without limitation, any of the

Restrictive Covenants, or any part thereof, is invalid or unenforceable, the

remainder of the provisions of this Agreement shall not thereby be affected and

shall be given full effect, without regard to the invalid portions.

  

  

  

            7.2   Duration and Scope of Covenants. If any court or other

decision-maker of competent jurisdiction determines that any of the Executive's

covenants contained in this Agreement, including, without limitation, any of the

Restrictive Covenants, or any part thereof, is unenforceable because of the

duration or geographical scope of such provision, then, after such determination

has become final and unappealable, the duration or scope of such provision, as

the case may be, shall be reduced so that such provision becomes enforceable

and, in its reduced form, such provision shall then be enforceable and shall be

enforced.

            7.3   Resolution of Differences Over Breaches of Agreement. The

parties shall use good faith efforts to resolve any controversy or claim arising

out of, or relating to this Agreement or the breach thereof. If, despite their

good faith efforts, the parties are unable to resolve such controversy or claim

through the Employer's internal review procedures, then such controversy or

claim shall be resolved by binding arbitration before a single, mutually

acceptable arbitrator under the rules of the Judicial Arbitration and Mediation

Service in Orange County, California and judgment upon the award rendered by the

arbitrator(s) may be entered in any court having jurisdiction thereof. If any

contest or dispute shall arise between the Employer and the Executive regarding

any provision of this Agreement, the prevailing party, as determined by the Arbitrator, shall 

be entitled to an award of all legal fees, costs, and expenses reasonably incurred in connection 

with such contest or dispute.

            7.4   Notices. All notices or deliveries authorized or required

pursuant to this Agreement shall be deemed to have been given when in writing

and when (i) deposited in the U.S. mail, certified, return receipt requested,

postage prepaid, or (ii) otherwise delivered by hand or by overnight delivery,

against written receipt, by a common carrier or commercial courier or delivery

service addressed to the parties at the following addresses or to such other

addresses as either may designate in writing to the other party:

     to the Employer:

DigitalPost Interactive, Inc., Inc

                             4040 Barranca Parkway

Irvine, CA  92604

     to the Executive:

Mr. Michael Sawtell

                             4040 Barranca Parkway

Irvine, CA  92604

            7.5   Entire Agreement. This Agreement, together with the Option

Agreement described in Section 3.3, contains the entire agreement between the

parties with respect to the subject matter hereof and supersedes all prior

agreements, written or oral, with respect thereto.

  

  

  

            7.6   Waivers and Amendments. This Agreement may be amended,

superseded, canceled, renewed or extended, and the terms hereof may be waived,

only by a written instrument signed by the parties or, in the case of a waiver,

by the party waiving compliance. No delay on the part of any party in exercising

any right, power or privilege hereunder shall operate as a waiver thereof, nor

shall any waiver on the part of any party of any such right, power or privilege

nor any single or partial exercise of any such right, power or privilege,

preclude any other or further exercise thereof or the exercise of any other such

right, power or privilege.

            7.7   GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED

 IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO

 CONFLICTS OF LAWS PRINCIPLES.

            7.8   Assignment. This Agreement, and the Executive's rights and

obligations hereunder, may not be assigned by the Executive; any purported

assignment by the Executive in violation hereof shall be null and void. In the

event of any sale, transfer or other disposition of all or substantially all of

the Employer's assets or business, whether by merger, consolidation or

otherwise, the Employer may assign this Agreement and its rights hereunder;

provided that such assignment shall not limit the Employer's liability under

this Agreement to the Executive.

            7.9   Withholding. The Employer shall be entitled to withhold from

any payments or deemed payments any amount of tax withholding required by law.

            7.10  Binding Effect. This Agreement shall be binding upon and inure

to the benefit of the parties and their respective successors, permitted

assigns, heirs, executors and legal representatives.

            7.11  Counterparts. This Agreement may be executed by the parties

hereto in separate counterparts, each of which when so executed and delivered

shall be an original but all such counterparts together shall constitute one and

the same instrument. Each counterpart may consist of two copies hereof each

signed by one of the parties hereto.

            7.12  Survival. Anything contained in this Agreement to the contrary

notwithstanding, the provisions of Sections 6, 7. 3, 7. 9 and 7.14, and the

other provisions of this Section 7 (to the extent necessary to effectuate the

survival of Sections 6, 7.3, 7.9 and 7.14), shall survive termination of this

Agreement and any termination of the Executive's employment hereunder.

            7.13  Headings. The headings in this Agreement are for reference

only and shall not affect the interpretation of this Agreement.

            7.14  Indemnification; Directors and Officers Insurance. To the

fullest extent permitted by law, the Employer shall indemnify, defend and hold

  

  

  

harmless the Executive from and against all actual or threatened actions, suits

or proceedings, whether civil or criminal, administrative or investigative,

together with all attorneys' fees and costs, fines, judgments or settlements

imposed upon or incurred by the Executive in connection therewith, that arise

from the Executive's employment by, or serving as an officer of, the Employer,

so long as the Executive acted or refrained from acting legally and in good

faith or reasonably believed that his actions or refraining from acting were

legal and performed or omitted in good faith. Employer currently has directors

and officers liability insurance and will use reasonable efforts to maintain

such insurance coverage during the term of this Agreement.

      IN WITNESS WHEREOF, the parties hereto have signed their names as of the

day and year first above written to this Executive Agreement.

 EMPLOYER

 DigitalPost Interactive, Inc.,

a Nevada corporation

By:

 -------------------

Mike Sawtell, CEO, President and Director

 EXECUTIVE

----------------------

Michael Sawtelldigitalpost_ex1032.htm

Exhibit 10.32

                              EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the "Agreement") dated as of March 29, 2010

 (the "Date of this Agreement"), is made by and between DigitalPost Interactive, Inc., a

Nevada corporation (the "Employer"), and Steven Dong (the "Executive").

      WHEREAS, the Employer wishes to employ the Executive on the terms set

      forth below.

      WHEREAS, Executive wishes to accept such employment.

      Accordingly, the parties hereto agree as follows:

      1.    Term. The Employer hereby employs the Executive, and the Executive

hereby accepts such employment, for an initial term commencing as of the Date of

this Agreement and ending on the second anniversary of such date, unless sooner

terminated in accordance with the provisions of Section 4 or Section 5; with

such employment to continue thereafter for successive one-year periods in

accordance with the terms of this Agreement on each anniversary of the Date of

this Agreement (subject to termination as aforesaid) unless either party

notifies the other party in writing not less than thirty (30) days before

expiration of the initial term and each annual renewal thereof (the period

during which the Executive is employed hereunder being hereinafter referred to

as the "Term") of an intent not to renew this Agreement.  To the extent Employer 

does not obtain a minimum of $1,500,000 in financing within 180 days of the Date 

of this Agreement (“Floor Amount”), this agreement shall terminate on such 180th day, 

except for Section 3.3 which shall remain valid pursuant to the terms of this Agreement. 

 If financing of at least $1,500,000 is obtained by the Company within the 180 days of the 

Date of this Agreement, then this Agreement shall remain valid and in full force.

      2.    Duties. During the Term, the Executive shall be employed by the

Employer as its Chief Financial Officer (“CFO”), and as such, the Executive shall

faithfully perform for the Employer the duties and have the powers customary for

such position, including general financial oversight of the Employer's

operations and preservation of the Company's assets. During the Term, the

Executive shall be required to report to the CEO of the Employer. The Executive shall 

devote substantially all of his business time and effort to the performance of his duties 

hereunder, and shall work primarily at the Employer's main business offices.

      3.    Compensation.

            3.1   Salary. The Employer shall pay the Executive during the Term a

salary at the rate of One Hundred Ninety Five Thousand Dollars ($195,000) per annum 

(the "Annual Salary"), in accordance with the customary payroll practices of the Employer 

applicable to senior executives, provided the payments are no less frequent than monthly 

(or, if there is no such policy, payments shall be semi-monthly). The Annual Salary shall be 

annually reviewed by the Employer for possible increases. The Annual Salary shall be 

subject to possible further increase from time to time in the discretion of the CEO or such 

committee of the Board as they shall designate for such purpose from time to time. Any

 increased Annual Salary shall thereupon be the "Annual Salary" for the purposes hereof. 

The Executive's Annual Salary shall not be decreased without his prior written

consent at any time during the Term.

            3.2   Incentive Compensation. During the Employment Term, the Executive shall be eligible 

to receive, in addition to his Annual Salary, an annual bonus (the "Bonus") of up to 35% of the Annual Salary. 

The amount of such Bonus and any performance standards or goals required to be attained in order to receive 

such Bonus shall be set by the CEO or such committee of the Board as they shall designate for such purpose 

from time to time based on, but not limited to, any of the following criteria: (i)amount of capital raised for the 

Employer; (ii) positioning of the Employer for a secondary public offering of the Employer's common stock; 

(iii) valuation attained for the Employer, as measured by arm's length investment transactions or market 

capitalization; (iv) periodic revenues as measured by total transaction dollars; and (v) entering into key 

strategic relationships. The Bonus shall be declared on or before the thirtieth day following each quarterly 

period, and paid not later than the last business day of the quarter following the quarter for which the Bonus 

is being paid. Paid bonus as defined in this section 3.2 only is subject to final approval of the board of directors.

           3.3   Stock Options. The Company grants to Executive, as incentive to enter this agreement, an option to 

purchase three million (3,000,000) shares (the "Options") at an exercise price of $0.05 per share.  This grant is in 

addition to the all previous options granted to Executive.  The Options may be intended to qualify as "incentive 

stock options" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. Such options 

shall have an exercise price per share as stated in the stock option agreement, which is equal to or exceeds the agreed 

fair market value of shares of Employer's stock as of the date of the stock option agreement. Such Options shall vest 

according to the stock option agreements. The vesting period shall be subject to possible acceleration in the discretion 

of the CEO or such committee of the Board as they shall designate for such purpose from time to time. Such options shall 

become fully vested immediately upon (i) a Change of Control, defined below, of the Employer, or (ii) a termination of the

 executive by Employer without Cause (defined in Section 5.1(a) below, or a termination due to resignation by Executive

 for Good Reason (defined in Section 5.2(a) below), if the same occurs within 120 days prior to the execution and delivery 

of an acquisition, merger, consolidation or other agreement which results in a Change of Control. For purposes of this 

Agreement "Change of Control" shall be deemed to have occurred if, as a result of a tender offer, other acquisition, merger, 

consolidation or sale or transfer of assets, any person(s) (as used in Sections 13(d) or 14(d) of the Securities Exchange 

Act of 1934 ("SEA")) becomes the beneficial owner (as defined in Rule 13(d)-3 of the SEA) of a total of fifty percent (50%) 

or more of either the outstanding shares of Employer's stock or Employer's assets; provided, however, that a change of control 

shall not be deemed to have occurred if a person who beneficially owned 50% or more of the Employer's stock as of the effective 

date of this Agreement continued to do so during the term of this Agreement. The terms of this Section 3.3 shall be included in the 

applicable stock option agreement between Employer and Executive relating to the issuance of the Options.  The Options granted under t

his agreement, any previous options granted to Executive prior to this agreement

  

  

  

and any other convertible securities or warrants previously issued to Executive shall be changed whereby the exercise

 price or conversion price shall become the same price per share equal to any lower priced subsequent financing made after the date 

of this agreement.  For example, if at a later date after this agreement the Company issues common stock for $0.025 per 

share, then the exercise price of the Options shall be changed from $0.05 per share to $0.025 per share with all other terms

 of the Options remaining the same, except for the lowering of the exercise price.

            3.4   Benefits. Except otherwise provided herein, the Executive

shall be entitled to participate in any group life, medical or disability

insurance plans, health programs, retirement plans, fringe benefit programs and

similar benefits that may be available to other senior executives of the

Employer generally, on the same terms as such other executives, to the extent

that the Executive is eligible under the terms of such plans or programs as they

may be in effect from time to time. Employer will provide coverage for the

Executive under the Employer's health benefits plan and will pay 100% of the

cost of spouse or dependent coverage. Coverage under the health benefits plan will be in effect commencing with the

 first month following ninety (90) days of employment.

3.5   Expenses. The Employer shall pay or reimburse the Executive

for all ordinary and reasonable out-of-pocket expenses actually incurred (and,

in the case of reimbursement, paid) by the Executive during the Term in the

performance of the Executive's services under this Agreement, provided that the

Executive submits proof of such expenses, with the properly completed forms as

prescribed from time to time by the Employer, no later than 30 days after the

end of the monthly period in which such expenses have been so incurred. In

addition, the Employer will pay the Executive's reasonable basic relocation

expenses, if any, which shall consist of airfare, moving company expenses and

hotel stays during the transition period, such expenses to be approved in

advance, in writing, by the Company.

              3.6   Executive is a currently licensed Certified Public Accountant (CPA) in good standing with the California State 

Board of Accountancy and American Institute of CPAs.  Employer shall also indirectly benefit from Executive having such

 CPA designation, as such, Employer agrees to reimburse Executive for all costs of keeping current Executives CPA license. 

 Such reimbursed costs shall not exceed $2,500 and be used for licensing fees, professional memberships and continuing 

professional education (CPE) courses or seminars, which Employer shall allow Executive to attend such CPE courses or 

seminars from time to time during the term of this Agreement.

3.7 Paid Time Off.  Executive is eligible for paid vacations, personal holidays, and sick leave.  The Employee handbook 

describes Employers current policies regarding these benefits.  As a member of Employers  executive management team, Executive 

will be eligible to accrue up to five (5) weeks annual paid vacation in addition to those paid holidays recognized in Employers policies.

3.8 Unpaid Time Off.  As additional benefit to Executive, in addition to the paid time off in Section 3.10, Employer 

shall allow Executive up to two (2) additional weeks of

  

  

  

unpaid vacation annually.  It is Executives sole discretion to take or not take unpaid time off.  Scheduling of such 

unpaid time off shall be approved by the CEO.

3.9 Car Allowance. The Executive shall be paid eight hundred ($800) and one hundred ($150) per month 

as an automobile and cell phone allowance, respectively, which serves as additional incentive to sign this Agreement a

nd hold the office designated herein.  Payment of the monthly $800 and $150 car and cell phone allowance, respectively, 

shall begin the same month this agreement is signed.

      4.    Termination upon Death or Disability. If the Executive dies during

the Term, the Term shall terminate as of the date of death, and the obligations

of the Employer to or with respect to the Executive shall terminate in their

entirety upon such date except as otherwise provided under this Section 4. If

the Executive becomes disabled for purposes of the long-term disability plan of

the Employer for which the Executive is eligible, or, in the event that there is

no such plan, if the Executive by virtue of ill health or other disability is

unable to perform substantially and continuously the duties assigned to him for

more than 180 consecutive or non-consecutive days out of any consecutive

12-month period, then the Employer shall have the right, to the extent permitted

by law, to terminate the employment of the Executive upon notice in writing to

the Executive. Upon termination of employment due to death or disability, (i)

the Executive (or the Executive's estate or beneficiaries in the case of the

death of the Executive) shall be entitled to receive any Annual Salary and other

benefits earned and accrued under this Agreement prior to the date of

termination (and reimbursement under this Agreement for expenses incurred prior

to the date of termination), including, but not limited to a pro-rata Bonus for

the year of termination (which in no event shall be less than a similar pro-rata

portion of the Executive's bonus for the preceding year) to be paid at such time

as Bonuses are ordinarily paid; (ii) in the case of termination due to

disability, the Executive shall be entitled to receive his Annual Salary for the

lesser of six (6) months following such termination, or the period until long

term disability insurance benefits commence under disability coverage furnished

by the Employer to the Executive; and (iii) the Executive (or, in the case of

his death, his estate and beneficiaries) shall have no further rights to any

other compensation or benefits hereunder on or after the termination of

employment, or any other rights hereunder, except as otherwise provided in the

plans and policies of the Employer.

      5.    Certain Terminations of Employment.

            5.1   Termination for Cause; Termination of Employment by the

Executive without Good Reason.

            (a)   For purposes of this Agreement, "Cause" shall mean the

                  Executive's:

                  (i)   conviction of (or pleading nolo contendere to) a felony

      involving the crime of theft or a related or similar act of unlawful

  

  

  

      taking, or a felony involving the federal or California securities or

      pension laws, or any felony , which results in material economic harm to

      the Employer;

                  (ii)  engagement in the performance of his duties hereunder or

      otherwise to the material and demonstrable detriment of the Employer, in

      willful misconduct, willful or gross neglect, fraud, misappropriation or

      embezzlement;

                  (iii) After notice from the Board of Directors, and, if

      requested by Executive, the opportunity to be heard by the Board of

      Directors, the failure to adhere to the lawful and reasonable directions

      of the Board that are consistent with the terms of this Agreement, or the

      failure to devote substantially all of the business time and effort to the

      Employer (except for any activities expressly authorized by the Employer);

                  (iv)  material breach of any of the provisions of Section 6,

      other than inadvertent breaches; or

                  (v)   breach in any material respect of the terms and

      provisions of this Agreement and failure to cure such breach within thirty

      (30) days following written notice from the Employer specifying such

      breach; provided however, if Executive delivers written notice to Employer

      during the 30 day cure period requesting to be heard at a meeting of the

      Board of Directors, his termination under this Section 5.2(a)(v) shall not

      be effective until such Board of Directors meeting at which Executive had

      an opportunity to be heard.

provided that Cause shall not exist except on written notice given to the

Executive at any time not more than 60 days following the occurrence of any of

the events described above (or, if later, the Employer's knowledge thereof),

which events in any case must have occurred after the effective date of this

Agreement.

            (b)   The Employer may terminate the Executive's employment

hereunder for Cause, and the Executive may terminate his employment for any or

no reason on at least 30 days' and not more than 60 days' written notice given

to the Employer. If the Employer terminates the Executive for Cause, or the

Executive terminates his employment and the termination by the Executive is not

covered by Section 4 or 5.2, (i) the Executive shall receive Annual Salary and

other benefits earned and accrued under this Agreement prior to the termination

of employment (and reimbursement under this Agreement for expenses incurred

prior to the termination of employment); and (ii) the Executive shall have no

further rights to any other compensation or benefits hereunder on or after the

termination of employment, or any other rights hereunder, except as otherwise

provided in the plans and policies of the Employer.

            5.2   Termination by the Employer without Cause; or by the Executive

  

  

  

for Good Reason.

            (a)   For purposes of this Agreement, "Good Reason" shall mean,

unless otherwise consented to in writing by the Executive;

                  (i)   a reduction in Annual Salary or in benefits of the

      Executive, or the failure of the Employer timely to make any Annual Salary payment due to the Executive,

 provided that such deferral or failure to pay continues  unremedied for  more than thirty (30) days;

                  (ii)  any action by the Employer that results in a material  diminution in the Executive's position, 

authority, duties or responsibilities; provided that the appointment to the office of Chief  Financial Officer of 

another person approved by the Executive shall be deemed not to be a material diminution in the Executive's 

position,  authority, duties or responsibilities;

                  (iii) a material breach of any provision of this Agreement by

      the Employer or;

                  (iv)  a failure of the Employer to have a successor entity

      specifically assume this Agreement.

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist

unless notice of termination on account thereof (specifying a termination date

no later than 30 days from the date of such notice) is given no later than 60

days after the time at which the event or condition purportedly giving rise to

Good Reason first occurs or arises (or when the Executive first becomes aware of

such circumstances); and (ii) if there exists (without regard to this clause

(ii)) an event or condition that constitutes Good Reason, the Employer shall

have 30 days from the date notice of such a termination is given to cure such

event or condition and, if the Employer does so fully cure such event or

condition, such event or condition shall not constitute Good Reason hereunder.

            (b)   The Employer may terminate the Executive's employment at any

time for any reason or no reason and the Executive may terminate the Executive's

employment with the Employer for Good Reason. A notice of non-renewal shall

constitute a termination of employment by the Employer without Cause.

            (c)   If the Employer terminates the Executive's employment and the

termination is not covered by Section 4 or 5.1, or the Executive terminates his

employment for Good Reason, the Executive shall receive:

                  (i)   Annual Salary and other benefits earned and accrued

      under this Agreement prior to the termination of employment (and

      reimbursement under this Agreement for expenses incurred prior to the

      termination of employment);

                 (ii)  the greater of (A) the Annual Salary for the unexpired

  

  

  

      Term of this Agreement, payable in payments with standard payroll periods,

       or (B) one (1) times the Annual Salary payable in payments with standard payroll periods;

                  (iii) not applicabe;

                  (iv)  reimbursement for COBRA payments equal to employee's

      regular monthly contributions toward the Executive's health insurance

      benefits for the twelve (12) month period following the termination date

      if the Executive elects COBRA benefits, and;

                  (v)   the right to exercise any or all vested stock options

      for a period of twenty (24) months after the effective date of termination

      of Executive's employment; provided however, (A) in the event the

      termination occurs within 120 days of the execution of a Change of Control

      agreement as provided in Section 3.3 above, vesting of all options shall

      be accelerated as provided in Section 3.3 above, and (B) in the event the

      termination occurs at a time not within such 120 day period, for purposes

      of this provision, all unvested options that would have vested had this

      Agreement remained in force through the end of the initial Term, shall be

      fully vested immediately prior to the termination under this Section

      5.2(c); The provisions of this subparagraph (v) shall be included in any

      stock option agreement between the Employer and the Executive.

(vi)   all incentive pay amounts as above without any limitations or any conditions.

      In order to be eligible to receive the benefits specified under sections

5.2(c)(ii) - (iv), the Executive must execute a general release of claims in a

form acceptable to the Employer, which shall not apply to the Employer's

obligations described above in this Section 5.2(c).

      6.    Invention, Non-Disclosure and Non-Competition.

            6.1   Inventions and Patents.

            (a)   The Executive will promptly and fully disclose to the Employer

any and all inventions, discoveries, improvements, ideas, developments, designs,

products, formulas, software programs, processes, techniques, technology,

know-how, negative know-how, data, research, technical data and original works

of authorship (whether or not patentable or registrable under patent, copyright

or similar statutes and including all rights to obtain, register, perfect and

enforce those proprietary interests) that are related to or useful in the

Employer's present or future business or result from use of property owned,

leased, or contracted for by the Employer and which the Executive develops,

makes, conceives or reduces to practice during the Executive's employment by the

Employer, either solely or jointly with others (collectively, the

  

  

  

"Developments"). All such Developments shall be the sole property of the

Employer, and the Executive hereby assigns to the Employer, without further

compensation, all of the Executive's right, title and interest in and to such

Developments and any and all related patents, patent applications, copyrights,

copyright applications, trademarks, service marks and trade names in the United

States and elsewhere.

            (b)   The Executive shall disclose promptly to an officer or to

attorneys of the Employer in writing any inventions, discoveries, improvements,

ideas, developments, designs, products, formulas, software programs, processes,

techniques, technology, know-how, negative know-how, data, research, technical

data and original works of authorship, whether or not patentable or registrable

under patent, copyright or similar statutes, the Executive may conceive, make,

develop or work on, in whole or in part, solely or jointly with others during

the Executive's employment, for the purpose of permitting the Employer to determine

whether they constitute Developments. The Employer shall receive such

disclosures in confidence.

            (c)   The Executive will keep and maintain adequate and current

written records of all Developments (in the form of notes, sketches, drawings

and as may be specified by the Employer), which records shall be available to

and remain the sole property of the Employer at all times.

            (d)   The Executive will assist the Employer in obtaining and

enforcing patent, copyright, trademark, service marks and other forms of legal

protection for the Developments in any country. Upon request, the Executive will

sign all applications, assignments, instruments and papers and perform all acts

necessary or desired by the Employer to assign all such Developments fully and

completely to the Employer and to enable the Employer, its successors, assigns

and nominees, to secure and enjoy the full and exclusive benefits and advantages

thereof.

            (e)   The Executive understands that the Executive's obligations

under this section will continue after the termination of the Executive's

employment with the Employer and that during the Executive's employment the

Executive will perform such obligations without further compensation, except for

reimbursement of expenses incurred at the request of the Employer. The Executive

further understands that if the Executive is not employed by the Employer as an

employee at the time the Executive is requested to perform any obligations under

this section, the Executive shall receive for such performance a reasonable per

diem fee, as well as reimbursement of any expenses incurred at the request of

the Employer.

            (f)   Any provision in this Agreement requiring the Executive to

assign the Executive's rights in all Developments shall not apply to an

invention that qualifies fully under the provisions of California Labor Code

section 2870, the terms of which are set forth below:

  

  

  

                  (i)   Any provision in an employment agreement which provides

      that an employee shall assign, or offer to assign, any of his or her

      rights in an invention to his or her employer shall not apply to an

      invention that the employee developed entirely on his or her own time

      without using the employer's equipment, supplies, facilities, or trade

      secret information except for those inventions that either:

                        (1)   Relate at the time of conception or reduction to

      practice of the invention to the employer's business, or actual or

      demonstrably anticipated research or development of the employer; or

                        (2)   Result from any work performed by the employee for

      the employer.

            (ii)  To the extent a provision in an employment agreement purports

      to require an employee to assign an invention otherwise excluded from

      being required to be assigned under subdivision (i), the provision is

      against the public policy of this state and is unenforceable.

            6.2   Proprietary Information.

            (a)   The Executive recognizes that the Executive's relationship

with the Employer is one of high trust and confidence by reason of the

Executive's access to and contact with the trade secrets and confidential and

proprietary information of the Employer including, without limitation,

information not previously disclosed to the public regarding current and

projected revenues, expenses, costs, profit margins and any other financial and

budgeting information; marketing and distribution plans and practices; business

plans, opportunities, projects and any other business and corporate strategies;

product information; names, addresses, terms of contracts and other arrangements

with customers, suppliers, agents and employees of the Employer; confidential

and sensitive information regarding other employees, including information with

respect to their job descriptions, performance strengths and weaknesses, and

compensation; and other information not generally known regarding the business,

affairs and plans of the Employer (collectively, the "Proprietary Information").

The Executive acknowledges and agrees that Proprietary Information is the

exclusive property of the Employer and that the Executive shall not at any time,

either during the Executive's employment with the Employer or thereafter

disclose to others, or directly or indirectly use for the Executive's own

benefit or the benefit of others, any of the Proprietary Information.

            (b)   The Executive acknowledges that the unauthorized use or

disclosure of Proprietary Information would be detrimental to the Employer and

would reasonably be anticipated to materially impair the Employer's value.

            (c)   The Executive's undertakings and obligations under this

Section 6.2 will not apply, however, to any Proprietary Information which: (a)

is or becomes generally known to the public through no action on the Executive's

  

  

  

part, (b) is generally disclosed to third parties by the Employer without

restriction on such third parties, (c) is approved for release by written

authorization of the Board, (d) is known to the Executive other than as a result

of work performed for the Employer, or (e) is required to be disclosed by law or

governmental or court process or order.

            (d)   Upon termination of the Executive's employment with the

Employer or at any other time upon request, the Executive will promptly deliver

to the Employer all notes, memoranda, notebooks, drawings, records, reports,

written computer code, files and other documents (and all copies or

reproductions of such materials) in the Executive's possession or under the

Executive's control, whether prepared by the Executive or others, which contain

Proprietary Information. The Executive acknowledges that this material is the

sole property of the Employer.

            6.3   Covenant Not to Compete.

            (a)   During the time that this Agreement is in effect, the

Executive shall not directly or indirectly:

                  (i)   own, engage in, conduct, manage, operate, participate  in, be employed by, be connected in 

any manner whatsoever with, or render  services or advice to (whether for compensation or without compensation), 

any other person or  business entity which, in the sole judgment of the Employer, directly or  indirectly competes 

with the Business of the Employer (as hereinafter defined); or

                  (ii)  recruit or otherwise solicit or induce any employee of

      the Employer to terminate his or her employment with, or otherwise cease

      his or her relationship with, the Employer in order to join any person or

      entity which, in the sole judgment of the Employer, competes with the

      Business of the Employer.

            (b)   For a period of 12 months after the expiration or termination

of this Agreement, the Executive shall not directly or indirectly recruit or

otherwise solicit or induce any employee of the Employer to terminate his or her

employment with, or otherwise cease his or her relationship with, the Employer

in order to join any person or entity which, in the sole judgment of the

Employer, competes with the business of the employer as engaged in at the

expiration or termination of this Agreement.

            (c)   The obligations set forth in paragraphs 6.3(a) and (b) above

shall not restrict the Executive's right to invest in the securities (not to

exceed 1% of the outstanding securities of any class) of any publicly-held

corporation in the management of which the Executive does not participate.

            (d)   For purposes of Section 6.3(a), "Business of the Employer"

means the business of Employer as engaged in internet website provider from time to time during the term] 

of this Agreement.

  

  

  

            6.4   Absence of Restrictions Upon Disclosure and Competition.

            (a)   The Executive hereby represents that, except as the Executive

has disclosed in writing to the Employer on Exhibit A attached hereto, the

Executive is not bound by the terms of any agreement with any previous employer

or other party to refrain from using or disclosing any trade secret or

confidential or proprietary information in the course of the Executive's

employment with the Employer or to refrain from competing, directly or

indirectly, with the business of such previous employer or any other party.

            (b)   The Executive further represents that the Executive's

performance of all the terms of this Agreement and as an employee of the

Employer does not and will not breach any agreement to keep in confidence

proprietary information, knowledge or data acquired by the Executive in

confidence or in trust prior to his employment with the Employer, and the

Executive will not disclose to the Employer or induce the Employer to use any

confidential or proprietary information or material belonging to any previous

employer or others.

            6.5   Other Obligations. The Executive acknowledges that the

Employer from time to time may have agreements with other persons or with the

U.S. Government or agencies thereof, which impose obligations or restrictions on

the Employer regarding inventions made during the course of work under such

agreements or regarding the confidential nature of such work. The Executive

agrees to be bound by all such obligations and restrictions which are made

known to the Executive and to take all action necessary to discharge the

obligations of the Employer under such agreements.

            6.6   Rights and Remedies upon Breach. The Executive acknowledges

and agrees that any breach by him of any of the provisions of Section 6 (the

"Restrictive Covenants") would result in irreparable injury and damage for which

money damages may not provide an adequate remedy. Therefore, if the Executive

breaches any of the provisions of Section 6, the Employer shall have the

following rights and remedies, each of which rights and remedies shall be

independent of the other and severally enforceable, and all of which rights and

remedies shall be in addition to, and not in lieu of, any other rights and

remedies available to the Employer under law or in equity (including, without

limitation, the recovery of damages) the right and remedy to have the

Restrictive Covenants specifically enforced (without posting bond and without

the need to prove damages) by any court having equity jurisdiction, including,

without limitation, the right to an entry against the Executive of restraining

orders and injunctions (preliminary, mandatory, temporary and permanent) against

violations, threatened or actual, and whether or not then continuing, of such

covenants.

      7.    Other Provisions.

  

  

  

            7.1   Severability. The Executive acknowledges and agrees that (i)

he has had an opportunity to seek advice of counsel in connection with this

Agreement and (ii) the Restrictive Covenants are reasonable in geographical and

temporal scope and in all other respects. If it is determined that any of the

provisions of this Agreement, including, without limitation, any of the

Restrictive Covenants, or any part thereof, is invalid or unenforceable, the

remainder of the provisions of this Agreement shall not thereby be affected and

shall be given full effect, without regard to the invalid portions.

            7.2   Duration and Scope of Covenants. If any court or other

decision-maker of competent jurisdiction determines that any of the Executive's

covenants contained in this Agreement, including, without limitation, any of the

Restrictive Covenants, or any part thereof, is unenforceable because of the

duration or geographical scope of such provision, then, after such determination

has become final and unappealable, the duration or scope of such provision, as

the case may be, shall be reduced so that such provision becomes enforceable

and, in its reduced form, such provision shall then be enforceable and shall be

enforced.

            7.3   Resolution of Differences Over Breaches of Agreement. The

parties shall use good faith efforts to resolve any controversy or claim arising

out of, or relating to this Agreement or the breach thereof. If, despite their

good faith efforts, the parties are unable to resolve such controversy or claim

through the Employer's internal review procedures, then such controversy or

claim shall be resolved by binding arbitration before a single, mutually

acceptable arbitrator under the rules of the Judicial Arbitration and Mediation

Service in Orange County, California and judgment upon the award rendered by the

arbitrator(s) may be entered in any court having jurisdiction thereof. If any

contest or dispute shall arise between the Employer and the Executive regarding

any provision of this Agreement, the prevailing party, as determined by the Arbitrator, shall be entitled

 to an award of all legal fees, costs, and expenses reasonably incurred in connection with such contest or dispute.

            7.4   Notices. All notices or deliveries authorized or required

pursuant to this Agreement shall be deemed to have been given when in writing

and when (i) deposited in the U.S. mail, certified, return receipt requested,

postage prepaid, or (ii) otherwise delivered by hand or by overnight delivery,

against written receipt, by a common carrier or commercial courier or delivery

service addressed to the parties at the following addresses or to such other

addresses as either may designate in writing to the other party:

     to the Employer:

DigitalPost Interactive, Inc.

                              4040 Barranca Parkway

Irvine, CA  92604

     to the Executive:

Mr. Steven Dong

  

  

  

                              4790 Irvine Blvd., #105-243

Irvine, CA  92620

            7.5   Entire Agreement. This Agreement, together with the Option

Agreement described in Section 3.3, contains the entire agreement between the

parties with respect to the subject matter hereof and supersedes all prior

agreements, written or oral, with respect thereto.

            7.6   Waivers and Amendments. This Agreement may be amended,

superseded, canceled, renewed or extended, and the terms hereof may be waived,

only by a written instrument signed by the parties or, in the case of a waiver,

by the party waiving compliance. No delay on the part of any party in exercising

any right, power or privilege hereunder shall operate as a waiver thereof, nor

shall any waiver on the part of any party of any such right, power or privilege

nor any single or partial exercise of any such right, power or privilege,

preclude any other or further exercise thereof or the exercise of any other such

right, power or privilege.

            7.7   GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN 

ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

            7.8   Assignment. This Agreement, and the Executive's rights and

obligations hereunder, may not be assigned by the Executive; any purported

assignment by the Executive in violation hereof shall be null and void. In the

event of any sale, transfer or other disposition of all or substantially all of

the Employer's assets or business, whether by merger, consolidation or

otherwise, the Employer may assign this Agreement and its rights hereunder;

provided that such assignment shall not limit the Employer's liability under

this Agreement to the Executive.

            7.9   Withholding. The Employer shall be entitled to withhold from

any payments or deemed payments any amount of tax withholding required by law.

            7.10  Binding Effect. This Agreement shall be binding upon and inure

to the benefit of the parties and their respective successors, permitted

assigns, heirs, executors and legal representatives.

            7.11  Counterparts. This Agreement may be executed by the parties

hereto in separate counterparts, each of which when so executed and delivered

shall be an original but all such counterparts together shall constitute one and

the same instrument. Each counterpart may consist of two copies hereof each

signed by one of the parties hereto.

            7.12  Survival. Anything contained in this Agreement to the contrary

notwithstanding, the provisions of Sections 6, 7. 3, 7. 9 and 7.14, and the

other provisions of this Section 7 (to the extent necessary to effectuate the

survival of Sections 6, 7.3, 7.9 and 7.14), shall survive termination of this

  

  

  

Agreement and any termination of the Executive's employment hereunder.

            7.13  Headings. The headings in this Agreement are for reference

only and shall not affect the interpretation of this Agreement.

            7.14  Indemnification; Directors and Officers Insurance. To the

fullest extent permitted by law, the Employer shall indemnify, defend and hold

harmless the Executive from and against all actual or threatened actions, suits

or proceedings, whether civil or criminal, administrative or investigative,

together with all attorneys' fees and costs, fines, judgments or settlements

imposed upon or incurred by the Executive in connection therewith, that arise

from the Executive's employment by, or serving as an officer of, the Employer,

so long as the Executive acted or refrained from acting legally and in good

faith or reasonably believed that his actions or refraining from acting were

legal and performed or omitted in good faith. Employer currently has directors

and officers liability insurance and will use reasonable efforts to maintain

such insurance coverage during the term of this Agreement.

    IN WITNESS WHEREOF, the parties hereto have signed their names as of the

day and year first above written to this Executive Agreement.

EMPLOYER

DigitalPost Interactive, Inc.,

a Nevada corporation

By:

-------------------

Mike Sawtell, CEO, President and Director

EXECUTIVE

----------------------

Steven Dong

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