Document:

ex10-3.htm

Exhibit 10.3

CATALYST VENTURES, INC.

CHANGE OF CONTROL AGREEMENT

 

THIS CHANGE OF CONTROL AGREEMENT (The "Agreement") is effective as of this 9st day of  November, 2009 by and between KENNETH STEPHEN GREEN ("Employee" or “Executive”) and CATALYST GROUP HOLDINGS INCORPORATED. a Delaware corporation (the "Corporation").

 

Recitals

 

The board of directors of the Corporation (the “Board”) believes it is in the best interests of the Corporation to provide Executive with compensation arrangements and equity benefits upon a Change of Control (defined below), that are intended to provide Executive with enhanced financial security, are competitive with those of other corporations, and provide sufficient incentive to Executive to remain at the Corporation as an employee through a Change of Control.

 

In consideration of the mutual covenants and promises herein contained, the parties agree as follows:

 

1.            Change of Control: Severance Benefits. Subject to the terms of this Agreement, if Executive's employment with Corporation terminates at any time, then the following shall apply:

 

(a)           Voluntary Resignation: Termination For Cause. If Employee's

employment terminates in a voluntary resignation (and not an Involuntary Termination), or if the Employee is terminated for Cause, or if Employee voluntarily accepts a position below the level of vice president, then Employee shall not be entitled to receive severance or other benefits except for those (if any) as may be available under the Corporation's severance and benefits plans and policies then existing at the time of such termination. For the avoidance of doubt, nothing in this Agreement shall affect Executive’s right to retire pursuant to his employment agreement and/or Executive’s right to receive retirement benefits.

 

(b)            Involuntary Termination. If the Employee suffers an Involuntary

Termination (as defined below), then the Employee shall be entitled to receive:

 

(i) for the thirty six (36) months following Employee’s termination, Employee’s Base Compensation (defined below) in effect at the date of such termination, which shall not be less than the Base Compensation to which Employee was entitled on the date that is sixty (60) days prior to Employee’s termination; and

 

(ii) reimbursements from the Corporation for the same level of health coverage and benefits as in effect at the date of Employee’s termination; provided, however, that (A) Employee is a Qualified Beneficiary as defined in Section 4980B(g)(1) of the Internal Revenue Code of 1986, as amended (the “Code”)); and (B) Employee elects Continuation Coverage pursuant to and as defined in the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant to COBRA. The Corporation shall continue to reimburse Employee for Continuation Coverage for the duration of Executive’s life.

 

 

 

 

 

(iii)  all of Executive’s retirement rights and benefits that Employee shall be entitled to receive pursuant to Executive’s employment agreement with the Company (as if Executive had retired).

 

(iv) the immediate vesting of all unvested shares that Executive has been issued, if not already vested.

 

(c)            Disability; Death. If Employee’s employment with the Corporation terminates due to the Employee’s Disability (defined below) or death, such termination shall be treated as if it were a voluntary termination and severance and other benefits shall not be provided in accordance with paragraph (b) above.

 

2.           Current Stock Ownership.  Nothing in this Agreement shall effect Executive rights and holding to the 30 million shares or any other shares of Company stock that Executive may have at the time of termination. Executive shall continue to hold said shares.

 

3.            Definition of Terms. The following terms referred to in this Agreement shall have the following meanings:

 

(a) Base Compensation. "Base Compensation" shall mean the base salary the

Corporation pays Employee for his services immediately prior to Employee’s termination.

 

(b) Change of Control. "Change of Control shall mean the occurrence of any of

the following events:

 

(i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than Kenneth Stephen Green is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of securities of the Corporation representing fifty One Percent (51%) or more of the total voting power represented by the Corporation’ s then outstanding voting securities;

 

(ii) the removal of Executive from his position as Chairman of the Board or Chief Strategist and/or the addition of other members to the board which results in Executive and/or the directors appointed by Executive pursuant to his employment agreement being able to cast less than 75% of the votes on the board.

 

 

 

 

 

(iii)  the consummation of the acquisition of fifty-one percent (51%) or

more of the outstanding capital stock of the Corporation pursuant to a tender offer validly made under any federal or state law (other than a tender offer by the Corporation);

 

(iv) the consummation of a merger, consolidation or other reorganization of the Corporation (other than a reincorporation), if after giving effect to such merger, consolidation or other reorganization of the Corporation, the stockholders of the Corporation who existed immediately prior to such merger, consolidation or other reorganization, own, directly or indirectly, less than fifty percent (50%) of the voting power of the surviving or resulting entity;

 

(v) the sale of all or substantially all the assets of the Corporation to a third party who is not an affiliate of the corporation; or

 

(vi)  the dissolution of the corporation pursuant to action validly taken by the stockholders of the corporation in accordance with applicable state law.

 

(vii)  Involuntary Termination.

 

(c)           Involuntary Termination. Involuntary Termination shall be deemed to occur if Employee is terminated by the Corporation for any reason other than for Cause or Disability (as those terms are defined herein), or if Employee resigns from the Corporation within three (3) months of any of the following events:  (i) (A) a reduction of Employee’s duties and/or responsibilities with­out Employee’s express written consent or (B) the removal of Employee from certain positions in the Corporation with­out Employee’s express written consent, either of which results in a material diminution in Employee’s position or responsibilities with the Corporation that are in effect immediately prior to such assignment, reduction or removal; (ii) a material reduction (five percent (5%) or greater) by the Corporation in the Base Compensation of  Employee as in effect immediately prior to such reduction (with­out Employee’s express written consent) that is not pro rata with reductions in the compensation of all other executives in the Corporation; or (iii) the relocation of Employee, with­out Employee’s express written consent, to a facility or a location more than forty-five (45) miles from Employee’s then present residence and the Corporation’s facility at which Employee was working immediately prior to such relocation.

 

(d)           Cause.   “Cause” shall mean (i) gross negligence or willful misconduct in the perfor­mance of Employee’s duties to the Corporation, including Employee’s refusal to comply in any material respect with the legal directives of the Board, or any higher-ranking member, if any, of the Corporation’s management (provided that such directives do not amount to an Involuntary Termination), and such refusal to comply is not remedied within thirty (30) working days after written notice from the Corporation, which written notice shall state that failure to remedy such conduct may result in termination for Cause; (ii) material and willful violation of any federal or state law by Employee that has resulted or is likely to result in substan­tial and material damage to the Corporation; (iii) commission of any act of fraud by Employee with respect to the Corporation; (iv) Employee’s conviction of a felony or a crime involving moral turpitude causing material harm to the standing and reputation of the Corporation; or (v) a material, non-curable breach by Employee of the provisions of Employee’s agreements with the Corporation, in each case as determined in good faith by the board of directors of the Corporation.

 

 

 

 

 

(e)            Disability.  “Disability” shall mean the termination of Employee by the Corporation if, as a result of physical or mental illness or incapacity as reasonably determined by the Board, Employee is unable to or fails to perform his full-time duties with the Corporation (i) for a period of three (3) consecutive months, (ii) for an aggregated period of six (6) months in any twelve (12) month period, or (iii) at such time as Employee submits professional medical evidence that he has a physical or mental illness or incapacity that will likely prevent him from returning to the performance of his work duties for six (6) months or longer.  Termination by the Corporation of Employee’s employment for “Disability” shall mean termination pursuant to this Section 3(e).

 

(f)           Disinterested Board. " Disinterested Board” shall mean the Board exclusive of those members of the Board, if any, who are parties to agreements or arrangements identical to or substantially similar to this Agreement.

 

4.           At-Will Employment. Both the Corporation and Executive may terminate the employment relationship at any time with or without cause provided that ninety (90) days prior written notice has been given by the party seeking to exercise termintation, subject to the provisions of Executive’s Change of Control Agreement and Deferred Compensation Agreement.  On termination of Employee’s employment with the Corporation, Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, Employee’s other agreements with the Corporation or as may otherwise be available in accordance with the Corporation’ s established employee plans and policies at the time of termination

 

5.           Term, Amendment and Termination.

 

(a)           Term. Subject to subsection (b) below, the terms of this Agreement shall terminate upon the earlier of (i) the date that all obligations of the parties hereunder have been satisfied.  A termination of the terms of this Agreement pursuant to the preceding sentence shall be effective for all purposes, except that such termination shall not affect the payment or provision of compensation or benefits on account of a termination of employment occurring prior to the termination of the terms of this Agreement.

 

(b)           Amendment and Termination. This Agreement may be amended in any respect or terminated by both Employee and the Corporation, following a unanimous resolution of the Board accepting the proposed amendment and an agreement by the Employee.

 

 

 

 

 

6.           Notice.

 

(a)           General. Notices and all other communications contemplated by this

Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U .S. registered or certified mail, return receipt requested and postage prepaid or when mailed overnight delivery via Federal Express.  In the case of the Employee, mailed notices shall be addressed to him at the home address which he most recently communicated to the Corporation in writing. In the case of the Corporation, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.

 

(b)           Notice of Termination. Any termination by the Corporation for Cause or by the Employee as a result of an Involuntary Termination shall be communicated by a notice of termination of the other party hereto given in accordance with Section 7(a) above. Such notice shall indicate the specific termination provision in this Agreement relied upon, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and specify the termination date (which shall be not more than fifteen (15) days after the giving of such notice). The failure by Employee to include in the notice any fact or circumstance that contributes to a showing of Involuntary Termination shall not waive any right of Employee hereunder or preclude Employee from asserting such fact or circumstance in enforcing his rights hereunder .

 

7.           Miscellaneous Provisions.

 

(a)           No Duty to Mitigate. Employee shall not be required to mitigate the

amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that the Employee may receive from any other source.

 

(b)           Waiver. No provision of this Agreement shall be modified, waived or

discharged unless the modification, waiver or discharge is agreed to in writing and signed by Employee and by an authorized officer of the Corporation (other than Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 

 

 

 

 

(c)           Whole Agreement. No agreements, representations or understandings

(whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof.

 

(d)           Choice of Law.  The validity, interpretation, construction and performance of this agreement shall be governed by the laws of the State of California without giving effect to its conflict of laws provisions. Each party hereby submits to the jurisdiction of the appropriate state or federal courts in Clark County, Nevada and all disputes arising out of this Agreement shall be subject to the exclusive jurisdiction and venue of Clark County, Nevada, and the parties consent to the personal and exclusive jurisdiction and venue of such County.

 

(e)           Severability .The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.

 

(f)           Withholding Taxes. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

 

(g)           Successors and Assigns

.  Except as otherwise provided herein, the terms and conditions [inure to the benefit of and be binding upon the respective successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns the rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(h)           Headings. The headings of sections herein are included solely for

convenience of reference and shall not control the meaning or interpretation of any provisions of this Agreement.

 

(i)           Counterparts. This Agreement may be executed in counterparts, each of

which shall be deemed an original, but all of which together will constitute one and the same instrument.

 

 

 

 

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Corporation by its duly authorized officer, as of the day and year first above written.

 

	
CORPORATION:

	  	
EMPLOYEE:

	  	  	
Kenneth Stephen Green

	  	  	  
	  	  	  
	/s/ Kenneth Green	  	/s/ Kenneth Green
	
Signature

	  	
Signature

	  	  	  
	
Name: Kenneth Stephen Green

	  	
Name: Kenneth Stephen Green

	
Title:   Chairman and Chief of Corporate Development

	  	
           As an individual

	
Date: 11/6/09

	  	
Date: 11/6/09ex10-4.htm

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of November 6, 2009, by and between Catalyst Group Holdings Incorporated (the "Company") and Kenneth S. Green ("Executive").

 

 

	
1.  

	
Employment.  The Company shall employ Executive, and Executive hereby accepts employment with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on the date hereof and continuing for a period of five years unless sooner terminated as provided in Section 4 hereof (the "Employment Period").

 

	
2.  

	
Position and Duties.

 

	
2.1.  

	
During the Employment Period, Executive shall serve as Chief of Corporate Development. During the Employment Period, Executive shall render such additional executive and managerial services to the Company which are consistent with Executive's position, as the board of directors (the "Board") may from time to time direct.

 

	
2.2.  

	
During the Employment Period, Executive shall report to the Board and the President of the Company and shall devote his best efforts and attention to the business and affairs of the Company.  Executive shall be required to devote all of his employment time to performing her duties hereunder. Executive shall perform her duties, responsibilities and functions to the Company to the best of her abilities in a diligent, trustworthy, professional and efficient manner and shall comply with the policies and procedures of the Company in all material respects.  So long as Executive is employed by the Company, Executive shall not, without the prior written consent of the Board, accept other employment or perform other services for compensation. In addition, Executive may serve as an officer or director of or otherwise participate in purely educational, welfare, social, religious and civic organizations so long as such activities do not interfere with Executive's employment.

 

	
3.  

	
Compensation and Benefits.

 

	
3.1.  

	
During the Employment Period, Chief Executive Officer & President salary shall be Four Hundred Thousand Dollars ($600,000) per annum or such higher rate as the Board may determine from time to time (as adjusted from time to time, the "Salary"), which compensation shall be payable by the Company in equal quarterly installments.  The salary shall be paid directly to The Catalyst Holding Group, LLLP.

 

	
3.2.  

	
During the Employment Period, the Company shall reimburse Executive for all reasonable business expenses incurred by her in the course of performing his duties and responsibilities under this Agreement which are consistent with the Company's policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company's requirements with respect to reporting and documentation of such expenses.

 

	
3.3.  

	
During the Employment Period, the Executive shall be entitled to normal Company benefits as then currently being provided.

 

 

 

 

 

	
4.  

	
Termination.

 

	
4.1.  

	
The Employment Period shall continue for the stated term or until Executive's earlier resignation, death or mental or physical disability or incapacity (as determined by the Board in its good faith judgment) or termination of employment by the Company for Cause.  Except as otherwise provided herein, any early termination of the Employment Period by the Company shall be effective as specified in a written notice from the Company to Executive.

 

	
4.2.  

	
If the Employment Period is terminated by the Company for Cause or upon Executive's resignation, death or mental or physical disability or incapacity (as determined by the Board in its good faith judgment), Executive shall only be entitled to receive her Base Salary through the date of termination.

 

	
4.3.  

	
Except as otherwise expressly provided herein, all of Executive's rights to compensation hereunder which would have accrued or become payable after the termination of the Employment Period shall cease upon such termination, other than those expressly required under applicable law.  The Company may offset any amounts Executive owes it against any amounts it owes Executive hereunder’

 

	
4.4.  

	
For purposes of this Agreement, "Cause" shall mean with respect to Executive one or more of the following:  (i) the past or present commission of a felony or the commission of any other act or omission involving dishonesty, disloyalty or fraud with respect to the Company or any of its affiliates or any of their customers or suppliers, (ii) reporting to work under the influence of alcohol or illegal drugs, the use of illegal drugs (whether or not at the workplace) or other repeated conduct causing the Company or any of its affiliates public disgrace or disrepute or material economic harm, (iii) repeated failure to perform the duties set forth herein, as reasonably directed by the Board, (iv) any act or omission aiding or abetting a competitor, supplier or customer of the Company or any of its affiliates to the material disadvantage or detriment of the Company or any of its affiliates, (v) breach of fiduciary duty, negligence or willful misconduct with respect to the Company, (vi) inability (due to illness or disability) to perform the duties required hereunder for more than twenty  (20) days in any given month, (vii) death, or (viii) any material breach of this Agreement.

 

	
4.5.  

	
Upon a Sale of the Company (as hereinafter defined), if Executive’s employment shall not be continued pursuant to a written agreement for a term at least as long as the remainder of the term hereof, then Executive shall be entitled to immediate payment of her Base Salary for the remainder of the specified term hereof. For purposes of this Agreement, "Sale of the Company" shall mean a sale or sales which results in a transfer of all or substantially all of the outstanding equity interests of the Company or all or substantially all of the assets of the Company (other than a transfer of an interest therein to secure borrowings or other obligations of the Company and except for a transfer to an affiliate of any of the current owners of the Company) or (ii) a reorganization or merger of the Company with an unrelated party.

 

 

 

 

 

	
5.  

	
Confidential Information.  Executive acknowledges that the information, observations and data (including trade secrets) obtained by him while employed by the Company concerning the business or affairs of the Company, or any other affiliate ("Confidential Information") are the property of the Company or such affiliate.  Therefore, Executive agrees that she shall not disclose to any third party or use for her own purposes any Confidential Information or any confidential or proprietary information of other persons or entities in the possession of the Company, or any other affiliate ("Third Party Information"), without the prior written consent of the Board, unless and to the extent that the Confidential Information or Third Party Information becomes generally known to and available for use by the public other than as a result of Executive's acts or omissions.

 

	
6.  

	
Survival.  Sections 5 through 24, inclusive, shall survive and continue in full force in accordance with their terms notwithstanding the termination of the Employment Period.

 

	
7.  

	
Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight courier service or mailed by first class mail, return receipt requested, to the recipient at the address below indicated

 

Notices to Executive:

 

Kenneth S. Green

 

____________________

 

____________________

 

Notices to the Company:

 

      Kenneth Green

      Catalyst Group Holdings Incorporated

      1739 Creekstone Circle

San Jose, CA    95133

 

or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement shall be deemed to have been given when so delivered, sent or mailed.

 

 

 

 

 

	
8.  

	
Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

	
9.  

	
Complete Agreement.  This Agreement, those documents expressly referred to herein and other documents of even date herewith embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

	
10.  

	
Third Party Beneficiaries.  No provision of this Agreement is intended to, or shall, confer any third party beneficiary or other rights or remedies upon any person other than the parties hereto.

 

	
11.  

	
No Strict Construction.  The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

	
12.  

	
Counterparts.  This Agreement may be executed in separate counterparts (including by means of telecopied signature pages), each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

	
13.  

	
Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive, the Company and their respective heirs, successors and assigns, except that Executive may not assign her rights or delegate her duties or obligations hereunder without the prior written consent of the Company.

 

	
14.  

	
Choice of Law.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Nevada, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Nevada or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Nevada.

 

	
15.  

	
Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company's right to terminate the Employment Period with or without Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

 

 

 

 

 

	
16.  

	
Indemnification and Reimbursement of Tax Payments on Behalf of Executive.  The Executive will  be compensated as a 1099 Contract Employee, and therefore will be responsible for all federal, state, local or foreign withholding taxes, excise tax, or employment taxes ("Taxes") imposed with respect to Executive's compensation.

 

 

	
17.  

	
Waiver of Jury Trial.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date first written above.

 

	
Company:

 

Catalyst Group Holdings Incorporated

 

 

/s/ Kenneth Green

Kenneth Green-Founder, Chairman

	  	
Executive:

 

 

 

 

/s/ Kenneth Green

Kenneth S. Green-Secretary-Treasurer & Director

	
& Chief of Corporate Development

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