Document:

Exhibit
10.1

 

 

EMPLOYMENT
AGREEMENT

 

THIS AGREEMENT (the “Agreement”)
is made as of the last date executed below (the “Effective Date”) by and
between Thomas Group, Inc. (“Employer”) and Barbara Stinnett (“Employee”).  Employer and Employee are hereinafter
collectively called the “Parties.”

 

WITNESSETH:

 

WHEREAS, Employee desires to
be employed by Employer as Executive Vice President and Chief Customer Officer,
Worldwide Customer Operations of Employer, and Employer desires to employ
Employee in such capacity under the terms and conditions set forth herein;

 

NOW, THEREFORE, in
consideration of the mutual promises, covenants and agreements contained herein
and other good and valuable consideration, the parties agree as follows:

 

1.                                       Agreement of
Employment.  Employer
agrees to employ Employee at-will, and Employee accepts such at-will
employment, upon the terms and conditions hereinafter set forth.  Such employment shall become effective upon
the Effective Date hereof.

 

2.                                       Duties and
Authority.

 

a.                                       Position and
Duties.  Employee shall devote Employee’s best efforts to the performance of
Employee’s duties and any other work which may be assigned to Employee by
Employee’s supervisors and managers, all under and subject to Employer’s
instructions and control.  Employee will
have overall responsibility for all strategy, marketing, sales and consulting
services and report to the Executive Chairman, Chief Executive Officer and
President of Thomas Group.

 

b.                                      Duty of Loyalty
During Employment.  Employee
understands and acknowledges that employment with Employer requires Employee’s
full attention and effort.  Employee
agrees that, during the period of employment by Employer, Employee shall devote
all of Employee’s working time, attention, knowledge and skill to the business
and interest of Employer as Employer may from time to time reasonably
request.  Further, Employee will not,
without Employer’s express written consent, engage in any employment or
business activity other than for Employer, including but not limited to employment
or business activity which is competitive with, or would otherwise conflict
with, his or her employment by Employer.

 

c.                                       Commencement of
Duties.  Employee will begin work on July 26,
2010.

 

3.                                       Compensation.  In consideration of the services to be
rendered by Employee pursuant to this Agreement, including without limitation
any services that may be rendered by Employee as an officer, director, manager
or member of any committee of Employer or any of its parents, subsidiaries or
affiliates, Employer shall pay to Employee, and Employee shall accept, the
following compensation during the term of this Agreement:

 

a.                                       Base Salary.  Employer shall pay Employee a base salary of
$325,000 annually ($27,083) per month (“Base Salary”), pro-rated for 2010.  This base salary will increase in 2011
quarterly by $25,000 beginning on January 1, 2011, and continuing on the
first day of each subsequent consecutive

 

 

quarter for an additional
$25,000 for a maximum total of $100,000 in increases.  This will bring Employee’s base salary to
$425,000 by October 1, 2011.  The
base salary is   payable in accordance
with the standard payroll practices of Employer.

 

b.                                      Sign-on-bonus.  Employer will pay to the Employee a sign on
bonus of $25,000 payable after 60 days of consecutive employment.  The sign on bonus is fully repayable to
Employer should the Employee terminate her employment voluntarily prior to September 15,
2012.

 

c.                                       Paid Time Off
and Benefits.  During
Employee’s employment and consistent with Employer’s policy, Employee shall be
entitled to Paid Time Off. Employee will be eligible to participate in any
medical, dental, disability benefits, and/or 401(k) plans, subject to plan
requirements, that may be in effect at Thomas Group.  The benefits are effective on Employee’s date
of hire.

 

d.                                      Bonus program.  Employee will be eligible to participate in
Employers Incentive Compensation Plan at the rate of 65% of base and the Sales
Incentive Compensation Plan as approved annually by the Compensation Committee
of the Board of Directors. The minimum sales amount for the EVP of sales for
the Sales Incentive Compensation Plan is $3 million.  Both plans are attached for Employee review.

 

e.                                       Stock Options.  Upon approval of the Compensation and
Corporate Governance Committee of the Board of Directors at their next meeting
on July 28, 2010, Employee will be eligible for 100,000 shares of Thomas
Group stock options prior to any split or reverse split.  However, should a split or reverse split be
voted on at the July 28, 2010, Board of Directors meeting, Employee will
be eligible to receive the adjusted number of shares post split. All shares
will be governed by the standard terms and conditions of the Thomas Group stock
option plan.  The share awards may be
voted upon at the next shareholders meeting in June of 2011.  These options will become fully vested as of December 31,
2011, provided Employee is an Employee in good standing on that date.

 

f.                                         Reimbursement
of Business Expenses.  Employer
shall reimburse Employee for actual and reasonable miscellaneous expenses
incurred by Employee in performing Employee’s services hereunder.  Employee shall submit an itemization of such
expenses and supporting documentation in accordance with Employer’s generally
applicable policies and procedures.

 

4.                                       Termination.  Employee’s employment shall be “at-will”.  Employee’s employment may be terminated at
any time by either Employer or Employee for any reason, with or without
cause.  As used herein, “Cause” shall
mean: (1) Employee’s conviction or plea of guilty or nolo contendere to a
crime that involves dishonesty, disloyalty, moral turpitude, sexual harassment
or discrimination, provides for a term of imprisonment or constitutes a felony;
(2) the willful and intentional failure or willful and intentional refusal
to follow reasonable and lawful instructions of the Company’s Board of
Directors; (3) a material act of omission involving intentional
misconduct, malfeasance or gross negligence in performance of duties to the
Company or involving neglect of duties in a manner that is materially damaging
to the Company or an affiliate of the Company; (4) a material breach or
default in the performance of obligations under Employee’s employment agreement
with the Company; (5)  a material 
documented lack of performance  (6) a
serious violation of any of the Company’s policies to which officers of the
Company are subject; or (7) an act of misappropriation embezzlement, fraud
or similar conduct, whether or not involving the Company.   In the event of the termination of Employee’s
employment for reasons other than cause, Employee shall be entitled to her
salary for a period of three months should Employee be terminated in 2010, and
six months should Employee be terminated at any time thereafter.  Employee shall not be entitled to receive any
additional compensation unless termination

 

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is due to a change in
control.  In the event of Employee’s
death during the term of this Agreement, this Agreement shall terminate immediately
upon Employee’s death.

 

a.                                       Certain
Definitions:

 

i.                                          A “Change in Control” shall mean a change in the ownership or
control of the Company which occurs by reason of any of the following events:

 

a merger or consolidation in
which securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities are transferred to a
person or persons different from the persons holding those immediately prior to
such transaction;

 

the sale, transfer or other
disposition of all or substantially all of the Company’s assets in complete
liquidation or dissolution of Company; or

 

the acquisition, directly or
indirectly, by any person or related group of persons (other than the Company
or a person that directly or indirectly controls, is controlled by, or is under
common control with, the Company), of beneficial ownership of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Company’s outstanding securities pursuant to a tender or exchange offer
made directly to the Company’s stockholders which the Board recommends such
stockholders to accept.

 

5.                                       Obligations of
the Company upon Certain Terminations following a “Change in Control”:  If a Change in Control occurs and, the Company
unilaterally terminates the Employee’s employment other than for Cause or, the
Company shall pay the Employee the following payments:

 

a.                                       Provided the
Employee executes and delivers to the Company a General Release and such
release becomes effective in accordance with applicable law, the Company shall
pay to the Employee a severance payment in the amount of twelve months salary
equal to the Employee’s salary at the time of termination provided the change
in control results in a share price of $2 per share or twelve months salary
plus expected bonus if the change in control results in a share price in excess
of $3 per share.  These prices are based
upon the current number of shares as of June 22, 2010.  However, should the Company execute a split
or reverse split, the resulted price per share from a change in control will be
adjusted accordingly. Such benefit shall be paid in one lump sum within sixty
(60) days after the Employee’s date of termination from the Company, or via
salary continuation, either distribution to be determined equally by the
Employee and the Company, and such payment shall be subject to the Company’s
collection of all applicable withholding taxes.

 

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6.                                       Obligations of
the Employee upon Termination:

 

a.                                       General Release of Claims required under Change of Control:  In order to receive any
payments or benefits under Section  5, the Employee must first execute and
deliver to the Company, within forty-five (45) days after the date of termination
due to a Change in Control, a General
Release and Waiver of Claims (in the form provided by the Company)
(a “General Release”)   in favor
of the Company and its subsidiaries, officers, directors, employees and agents
which shall release all claims the Employee may have relating to the Employee’s
employment with the Company (or any subsidiary) other than claims relating to
any benefits under this Agreement, and such General Release must become
effective and enforceable in accordance with its terms following the expiration
of any applicable revocation period under federal or state law.  If such General Release is not executed and
delivered to the Corporation within the applicable forty-five (45)-day period
hereunder or does not otherwise become effective and enforceable in accordance
with its terms, then no severance benefits will provided the Executive under Section 5.

 

7.                                       Confidentiality.

 

a.                                       Confidential
Information.  Employee
agrees and acknowledges that during Employee’s employment with Employer, Employee
will have access to and acquire confidential and proprietary information
regarding the business of Employer that is not generally available to the
public.  In order to assist Employee with
Employee’s duties, Employer promises to provide Employee with Confidential
Information regarding the business of Employer that is not generally available
to the public and that, if disclosed, could put Employer at an unfair
competitive disadvantage.  For purposes
of this Agreement, “Confidential Information” means any information or material
(i) generated, collected, or used by Employer that relates to its actual
or anticipated business or research and development, or (ii) suggested by
or resulting from work assigned to and/or performed by Employee for or on
behalf of Employer, including without limitation information regarding the use
and application of Thomas Group methodologies and other information and
concepts developed by Employer to improve the business processes of
corporations and other organizations; software or other technology developed by
Employer and any research data or other documentation related to the
development of such software or technology; client lists and prospect lists
developed by Employer; information regarding Employer’s clients which Employee
acquires as a result of employment with Employer, including client contracts,
work performed for clients, client contacts, client requirements and needs,
data used by Employer to formulate client bids, client financial information,
and other information regarding the client’s business; information related to
Employer’s business, including but not limited to marketing strategies and
plans, sales procedures, operating policies and procedures, pricing and pricing
strategies, business plans, sales, profits, and other business and financial
information of Employer; training materials developed by and utilized by
Employer; employee files, skills, performance and qualifications of personnel
of Employer; trade secrets, inventions (whether patented or unpatented),
copyrights, service marks, know-how, algorithms, computer programs, computer
code and related documentation; and compilations of any of the foregoing
information relating to the actual or anticipated business of Employer.  Employee agrees and acknowledges that
substantial time, labor, skill and money have been and will be invested in
developing the Confidential Information and that the protection and maintenance
of this Confidential Information constitute legitimate interests to be
protected by Employer.

 

b.                                      Non-Disclosure.  As a material inducement to Employer to enter
into this Agreement, and to pay to Employee the compensation set forth herein,
Employee agrees that, both during Employee’s employment with Employer and at
any time thereafter, Employee shall preserve in strictest confidence, and shall
not disclose, copy or take away, either directly or indirectly, or use for
Employee’s

 

4

 

own benefit or the benefit
of any third party, any Confidential Information of Employer, or any
confidential or proprietary information or material received by Employer,
except as required in the ordinary course of Employee’s employment for the
benefit of Employer.  All documents,
records, files, computer programs, electronic data, and tangible items and
materials containing or embodying any Confidential Information, including all
copies thereof, whether prepared by Employee or by others, are the property of
Employer and shall immediately be returned to Employer upon termination of
Employee’s employment with Employer (voluntary or otherwise), or at any time
upon Employer’s request, and no copies thereof shall be kept by Employee.

 

c.                                       Non-Disclosure
of Confidential Information of Third Parties.  Employee shall not use or disclose, during
Employee’s employment with Employer, confidential information belonging to any
third parties unless written permission has been given by such third parties to
Employer, and been accepted by Employer, to allow Employer to use and/or
disclose such information.  Employee
shall defend and indemnify Employer for all losses, costs (including attorney’s
fees) or damages that result from any breach of the covenant contained in the
preceding sentence.

 

8.                                       Non-Competition
and Non-Solicitation.

 

a.                                       Definitions.

 

i.                                          “Competitive
Business” shall mean any person or entity that provides the same or
substantially similar products or services as Employer, including but not
limited to management or operational consulting services.

 

ii.                                       “Non-Competition
Period” shall mean the period beginning on the Effective Date of this Agreement
and continuing until the date that is twelve (12) months after the voluntary
date of termination of Employee’s employment with Employer, regardless of the
reason for such termination.

 

iii.                                    “Customer”
shall mean any person, firm, corporation, partnership, association or other
entity to which Employer provided services during the twelve (12) months prior
to the termination of this Agreement and with which Employee had contact in the
course of Employee’s employment with Employer, or with respect to which
Employee possesses information that is proprietary or confidential to Employer.

 

iv.                                   “Prospective
Customer” shall mean any person, firm, corporation, partnership, association or
other entity to which Employer identified as a target Customer, contacted,
solicited, or pitched its services to during the twelve (12) months prior to
the termination of this Agreement and with respect to which Employee had
knowledge of Employer’s interest in such Prospective Customer.

 

b.                                      Non-Competition.  Employee acknowledges that Employer competes
actively throughout the entire United States and has a legitimate business
interest in protecting itself throughout the entire United States.  Employee acknowledges that the services
Employee is to render are of a special and unusual character with a unique
value to Employer, the loss of which cannot adequately be compensated by
damages in action at law.  In view of the
unique value to Employer of the services of Employee, in consideration of
Employer’s agreement to provide Employee with Confidential Information and
other consideration specified herein, including but not limited to training on
specific products unique to Thomas Group and not available to the public at
large, and as a material inducement for Employer to enter into this Agreement,
Employee agrees that, during the Non-Competition Period, Employee shall not,
within the United States, directly or indirectly:

 

5

 

i.                                          provide
personal services, as an officer, director, executive, manager, employee,
consultant, advisor, independent contractor or otherwise, to a Competitive
Business;

 

ii.                                       develop,
acquire or maintain an ownership interest in a Competitive Business; provided,
however, that ownership interest of less than five percent (5%) of the
outstanding capital stock of a publicly traded Competitive Business shall not
be a violation of this Section 8(b)(ii); or

 

iii.                                    offer, develop,
or provide any products or services that would constitute a Competitive
Business.

 

c.                                       Non-Solicitation.  During the Non-Competition Period, Employee
shall not, directly or indirectly, on behalf of Employee or any Competitive
Business:

 

i.                                          take any action
to, or do anything reasonably intended to, divert business from Employer or any
of its subsidiaries, solicit any Customer or prospective Customer of Employer,
or influence or attempt to influence any existing or prospective Customers,
vendors, or suppliers of Employer to cease doing business with Employer; or

 

ii.                                       hire, employ,
solicit, divert or recruit for employment or attempt to hire, employ, solicit,
divert or recruit for employment any person who is, during such time frame, an
employee of Employer, or in any other manner attempt, directly or indirectly,
to influence, induce, or encourage any employee of Employer to leave the
employment of Employer.

 

d.                                      Judicial
Amendment.  Employer
and Employee acknowledge the reasonableness of the agreements set forth in
Sections 7 and 8, including the reasonableness of the geographic area, duration
of time and scope of activity restrained that are specified in Section 8.  Employee further acknowledges that Employee’s
skills are such that Employee can be gainfully employed in noncompetitive
employment and that the agreement not to compete will in no way prevent
Employee from earning a living. 
Notwithstanding the foregoing, if it is judicially determined that any
of the limitations contained in Sections 7 and 8 are unreasonable, illegal or
offensive under applicable law(s) (statute, common law or otherwise) and
may not be enforced as herein agreed, Employee and Employer agree that the
unreasonable, illegal, or offensive portions of Sections 7 and 8 shall be and
hereby are redrafted to conform with those applicable laws, while leaving the
remaining portions of Sections 7 and 8 intact. 
By agreeing to this contractual modification prospectively at this time,
Employee and Employer intend to make the agreements contained in Sections 7 and
8, including but not limited to the covenant not to compete contained in Section 8,
legal under the law(s) of all applicable states so that the entire
agreement not to compete and/or this entire Agreement as prospectively modified
shall remain in full force and effect and shall not be rendered void or
illegal.  Such modifications shall not
affect the payments made to Employee under this Agreement.

 

e.                                       Notice to Prospective or Subsequent Employers.  Employee shall notify any person or entity
employing Employee after termination of this Agreement or evidencing an
intention of employing Employee after termination of this Agreement of the
existence and provisions of Sections 7 and 8 of this Agreement.  In addition, Employee agrees that Employer
may notify any person or entity employing Employee or evidencing an intention
of employing Employee of the existence and provisions of this Agreement.

 

9.                                       Remedies.  Employee acknowledges that Employee’s
abilities and the services Employee will provide to Employer are unique and
that Employee’s failure to perform the obligations under

 

6

 

Sections 7 and 8 of this
Agreement would cause Employer irreparable harm and injury.  Employee further acknowledges that damages at
law will not be an adequate remedy for breach of the covenants contained in
Sections 7 and 8, and that the only adequate remedy is one that would prevent
Employee from breaching the terms of Sections 7 and 8.  As a result, Employee and Employer agree that
Employer’s remedies may include specific performance, a temporary restraining
order, preliminary and permanent injunctive relief, or other equitable relief
against any threatened or actual breach of Sections 7 and 8 by Employee.  Employee agrees to indemnify and hold
Employer harmless from any and all losses, claims, damages, or expenses,
including attorneys’ fees, arising or growing out of any breach or threatened
breach Sections 5 and 6 of this Agreement. The termination of Employee for any
reason shall not be deemed a waiver by Employer of any breach by Employee of
this Agreement or any other obligation owed to Employer, and notwithstanding
such a termination, Employee shall be liable for all damages attributable to
such a breach.  Nothing contained in this
Section 9 shall prohibit Employer from seeking and obtaining any other
remedy, including monetary damages, to which it may be entitled.

 

10.                                 Representations
of Employee.  Employee
represents that Employee’s execution of this Agreement, and performance of
Employee’s obligations hereunder, will not conflict with, or result in a
violation of or breach of, any other agreement to which Employee is a party or
any judgment, order or decree to which Employee is subject.  Employee certifies that Employee has no
outstanding agreement or obligation that is in conflict with any of the
provisions of this Agreement, or that would preclude Employee from complying
with the provisions hereof and further certifies that Employee will not enter
into any such conflicting agreement while employed by Employer.

 

11.                                 Non-Disparagement.  Employee agrees not to, directly or
indirectly; disparage Employer or any of its affiliates or any of their
respective equity holders, affiliates, directors, managers, officers,
employees, agents or representatives, or any of their financial records or
operations, or any of their products or practices, either orally or in
writing.  Employer agrees not to,
directly or indirectly, disparage Employee.

 

12.                                 Neutral
Reference.  Upon
Employee’s termination of employment, all reference inquiries should be
directed to the Human Resources Department, which will confirm to prospective
employers the position(s) held and dates of employment.

 

13.                                 Intellectual
Property.

 

a.                                       Assignment.  All Works (as defined below)
shall belong exclusively to Employer, whether or not fixed in a tangible medium
of expression.  To the maximum extent
permitted under applicable law, all Works shall be deemed to be “works made for
hire” under the United States Copyright Act, and Employer shall be deemed to be
the author thereof.  If and to the extent
any Works are determined not to constitute “works made for hire,” Employee
agrees to, and hereby irrevocably assigns and transfers to Employer to the
maximum extent permitted by law all right, title and interest in and to the
Works, including all copyrights, patents, trade secret rights and other
proprietary rights.  Without limiting the
foregoing, Employee agrees to, and hereby irrevocably assigns and transfers to
Employer all economic rights to the Works, including the rights to reproduce,
manufacture, use, adapt, modify, publish, distribute, sublicense, publicly
perform and communicate, translate, lease, import and otherwise exploit the
Works.  Employee shall have no right to
exercise any economic rights to the Works and will not reproduce, adapt,
modify, publish, distribute, sublicense, publicly perform or communicate,
translate, lease, import or otherwise exploit the Works, except as expressly
authorized by Employer.  Employee expressly
acknowledges and agrees that Employee wishes to remain anonymous and not to
have Employee’s name or any pseudonym used in connection with the Works.  Employee hereby approves any and all
modifications, uses, publications and other exploitation of the Works that
Employer or any successor or transferee thereof may elect to make, and Employee
expressly agrees that no such

 

7

 

modifications, uses,
publications or exploitations will or may cause harm to Employee’s honor or
reputation or be deemed to constitute a distortion or mutilation of the
Works.  Employer shall have the
unrestricted right to transfer and convey any or all of Employer’s rights in or
relating to the Works to any person or entity.

 

b.                                      Scope of Assignment.  Employee acknowledges and
understands that any assignment of inventions required by this Agreement does
not apply to an invention for which no equipment, supplies, facility or trade
secret information of Employer was used and which was developed entirely on
Employee’s own time, unless (a) the invention relates at the time of
conception or reduction to practice of the invention (i) directly to the
business of Employer or (ii) to Employer’s actual or demonstrably
anticipated research or development, or (b) the invention results from any
work performed by Employee for Employer.

 

c.                                       Records.  Employee will keep and
maintain adequate and current written records of all inventions, original works
of authorship, trade secrets or other Works in which rights vest in or are
assigned to Employer hereunder.  The
records will be in the form of notes, sketches, drawings, and any other format
that may be specified by Employer.  The
records will be available to and remain the sole property of Employer at all
times.

 

d.                                      Assistance.  Employee will provide any assistance
reasonably requested by Employer to: (i) obtain United States or foreign
letters patent, trademark and copyright registrations covering, and/or (ii) transfer
to Employer any rights that Employee may have (including short form assignments
intended for recording with the U.S. Copyright Office, the U.S. Patent and
Trademark Office, or any other entity) regarding, inventions, original works of
authorship and other Works belonging or assigned hereunder to Employer.  Employee understands that Employee’s
obligations under this Section shall survive any termination of this
Agreement or of Employee’s employment in perpetuity, provided that Employer
will compensate Employee at a reasonable rate for time actually spent
performing such obligations at Employer’s request after such termination.

 

e.                                       Works.  “Works” means: (i) any
inventions, trade secrets, ideas or original works of authorship that Employee
conceives, develops, discovers or makes in whole or in part during Employee’s
employment with Employer (which term includes, for purposes of this entire
definition, any affiliate of Employer), or that Employee conceived, developed,
discovered, or made in whole or in part during Employee’s employment or
relationship with Employer, and that relate to the business of Employer or its
actual or demonstrably anticipated research or development; (ii) any
inventions, trade secrets, ideas or original works of authorship that Employee
conceives, develops, discovers or makes in whole or in part during or for a
period of one year  after Employee’s
employment with Employer or any other Employer Entity, or which Employee conceived, developed, discovered, or made
in whole or in part during Employee’s employment or relationship with Employer,
and which are made through the use of any of Employer’s equipment, facilities,
supplies, trade secrets or time, or which result from any work that Employee
performs or performed for Employer; and (iii) any part or aspect of any of
the foregoing.

 

14.                                 Return of
Company Property; Reimbursement.  Subject to applicable law, upon termination
of employment for any reason either by Employee or Employer, Employee shall
return all property of Employer for which Employee is responsible, or that is
in Employee’s possession, custody, or control, and shall reimburse Employer for
the fair market value of any and all lost or destroyed property of Employer for
which Employee was responsible, including, but not limited to, cell phones or
PDAs, pagers, security access keys, air cards, and laptop computers.  In addition, subject to applicable law,
Employee shall reimburse Employer for any and all overpaid compensation at the
time of termination.  If Employee does
not reimburse Employer for all such property, then Employee authorizes Employer
to

 

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withhold (and Employer shall
withhold) the replacement cost of the property and/or overpaid funds from any
compensation due to Employee.

 

15.                                 General
Provisions.

 

a.                                       Assignment.  This Agreement is personal to Employee and
shall not be assignable by Employee without the express written consent of
Employer.  Employer shall have the right
to assign this Agreement to any affiliate or successor in interest of Employer,
whether by merger, consolidation, purchase of assets or otherwise.

 

b.                                      Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of Employer and any and all of its successors and assigns,
and it shall bind and inure to the benefit of Employee and Employee’s heirs and
legal representatives.

 

c.                                       Withholding.  Employer shall be entitled to withhold from
any amounts payable under this Agreement any federal, state, local or foreign
withholding or other taxes or charges which it is from time to time required to
withhold.  Employer shall be entitled to
rely on an opinion of counsel if any questions as to the amount or requirement
of such withholding shall arise.

 

d.                                      Severability.  The provisions of this Agreement are
severable.  The invalidity or
unenforceability of any one or more of the provisions hereof shall not affect
the validity or enforceability of any other part of this Agreement.

 

e.                                       Waiver.  A party’s failure to insist on compliance or
enforcement of any provision of this Agreement shall not affect the validity or
enforceability or constitute a waiver of future enforcement of that provision
or of any other provision of this Agreement by that party or any other party to
this Agreement.

 

f.                                         Survival.  The provisions of Sections 7, 8, 9, 10, 11,
13, 14 and 15 shall survive the termination of this Agreement and shall be
binding upon the successors and assigns of Employee.

 

g.                                      Notices.  Any notice or other communication required or
permitted herein shall be sufficiently given if delivered in person, sent via
facsimile transmission or sent by certified mail, return receipt requested,
postage prepaid, or sent by nationally-recognized overnight courier, and
addressed to:

 

Employer:                                         Thomas Group, Inc.

Attn:
R. Robin M. Stacey

5221
North O’Connor Boulevard, Suite 500

Irving,
Texas 75039-3714

Fax:  972.443.1789

 

Employee:                                       Barbara D.
Stinnett

At
such address to be determined

 

or such other address as
shall be furnished in writing by any such party.  Any such notice will be deemed given upon
delivery, if delivered in person, or upon the date of mailing, if sent by
certified mail, or the date delivery is confirmed by the courier if sent by
nationally-recognized overnight courier. 
Notices sent by any other method shall be deemed to have been received
when actually received by the addressee or its or his authorized agent.

 

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h.                                      Applicable Law.  Except to the extent preempted by federal
law, this Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Texas, without considering its laws
or rules related to choice of law. 
Venue for any dispute related to this Agreement shall be fixed in the
Civil District Courts of Dallas County, Texas or, if federal jurisdiction is
appropriate, in the United States District Court in the Northern District of
Texas.  Employee acknowledges that
Employee has significant contacts with Texas and that such courts have personal
jurisdiction over Employee and submits to the jurisdiction of such courts.

 

i.                                          Modification.  This Agreement may not be amended or modified
other than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

j.                                          Merger.  This Agreement shall constitute the entire
agreement between the parties, supersede any and all other agreements, either
oral or written, between the parties hereto with respect to the subject matters
thereof and contain all of the covenants and agreements between the parties
with respect thereto.  Any and all prior
agreements, understandings, or commitments between Employer, its predecessors,
parents, subsidiaries or affiliates, and Employee with respect to any such
matter are hereby suspended and revoked as of the Effective Date of this
Agreement.

 

k.                                       Counterparts.  This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which
shall constitute one and the same document.IN WITNESS WHEREOF, the parties have
executed this Agreement, to be effective on the Effective Date hereof.

 

 

	
   

  	
  Thomas Group, Inc.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Robin M. Stacey

  
	
   

  	
  Name: R. Robin M. Stacey

  
	
   

  	
  Its: Vice President, Human
  Resources

  
	
   

  	
   

  
	
   

  	
  5221 North O’Connor
  Boulevard, Suite 500,

  
	
   

  	
  Irving, Texas 75039-3714

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  July 7,
  2010

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barbara D. Stinnett

  
	
   

  	
  Name: Barbara Stinnett

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  July 2,
  2010

  

 

10ex10one.htm

 

 

 

 

JPAK GROUP, INC.

 

INDEPENDENT DIRECTOR AGREEMENT

 

This AMENDED AND RESTATED INDEPENDENT DIRECTOR AGREEMENT (the “Agreement”) is made and entered into as of this 10th day of July, 2010, effective as of July 10, 2010   (the “Effective Date”), by and between Jpak Group, Inc., a Nevada corporation (the “Company”), and Wenjie Li, a citizen of P.R. China, with a permanent residence at Room  602, Unit 3, Building 2,  129 Yan An San Road, Qingdao, Shandong, China  (the “Independent Director”).

 

 

WHEREAS, the Company desires to engage the Independent Director, and the Independent Director desires to serve, as a non-employee director of the Company, subject to the terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company and the Independent Director, intending to be legally bound, hereby agree as follows:

 

1.           DEFINITIONS.

 

(a)           “Corporate Status” describes the capacity of the Independent Director with respect to the Company and the services performed by the Independent Director in that capacity.

 

(b)           “Entity” shall mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other legal entity.

 

(c)           “Proceeding” shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation, administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal or informal, including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the Independent Director’s rights hereunder.

 

(d)           “Expenses” shall mean all reasonable fees, costs and expenses, approved by the Company in advance and reasonably incurred in connection with any Proceeding, including, without limitation, attorneys’ fees, disbursements and retainers, fees and disbursements of expert witnesses, private investigators, professional advisors (including, without limitation, accountants and investment bankers), court costs, transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial services, and other disbursements and expenses.

 

(e)           “Liabilities” shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

(f)           “Parent” shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending with the Company, if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain.

 

 

 

  

  

  

 

(g)           “Subsidiary” shall mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning with the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain.

 

2.           SERVICES OF INDEPENDENT DIRECTOR. While this Agreement is in effect, the Independent Director shall perform duties as an independent director and/or a member of the committees of the Board, be compensated for such and be reimbursed expenses in accordance with the Schedule A attached to this Agreement, subject to the following.

 

(a)           The Independent Director will perform services as is consistent with Independent Director’s position with the Company, as required and authorized by the By-Laws and Articles of Incorporation of the Company, and in accordance with high professional and ethical standards and all applicable laws and rules and regulations pertaining to the Independent Director’s performance hereunder, including without limitation, laws, rules and regulations relating to a public company.

 

(b)           The Independent Director is solely responsible for taxes arising out of any compensation paid by the Company to the Independent Director under this Agreement,.  The Independent Director acknowledges and agrees that because he is not an employee of the Company the Company will not withhold any amounts for taxes from any of his payments under the Agreement.

 

(c)           The Company may offset any and all monies payable to the Independent Director to the extent of any monies owing to the Company from the Independent Director.

 

(d)           The rules and regulations of the Company notified to the Independent Director, from time to time, apply to the Independent Director. Such rules and regulations are subject to change by the Company in its sole discretion. Notwithstanding the foregoing, in the event of any conflict or inconsistency between the terms and conditions of this Agreement and rules and regulations of the Company, the terms of this Agreement control.

 

3.           REQUIREMENTS OF INDEPENDENT DIRECTOR. During the term of the Independent Director’s services to the Company hereunder, Independent Director shall observe all applicable laws and regulations relating to independent directors of a public company as promulgated from to time, and shall not: (1) be an employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the Company other than as a director and/or a member of a committee of the Board; (3) be an affiliated person of the Company or any Parent or Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3

 

 

 

  

2

  

 

 

(e)(1), other than in his capacity as a director and/or a member of a committee of the Board; (4) possess an interest in any transaction with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a), other than in his capacity as a director and/or a member of a committee of the Board committees; (5) be engaged in a business relationship with the Company or any Parent or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(b), except that the required beneficial interest therein shall be modified to be 5% hereby.

 

4.           REPORT OBLIGATION. While this Agreement is in effect, the Independent Director shall immediately report to the Company in the event: (1) the Independent Director knows or has reason to know or should have known that any of the requirements specified in Section 3 hereof is not satisfied or is not going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee of any other public company.

 

5.           TERM AND TERMINATION. The term of this Agreement and the Independent Director’s services hereunder shall be for one (1) year from the Effective Date, unless terminated as provided for in this Section 5. This Agreement and the Independent Director’s services hereunder shall terminate upon the earlier of the following:

 

(a)           Removal of the Independent Director as a director of the Company, upon proper Board or stockholder action in accordance with the By-Laws and Articles of Incorporation of the Company and applicable law;

 

(b)           Resignation of the Independent Director as a director of the Company upon written notice to the Board of Directors of the Company; or

 

(c)           Termination of this Agreement by the Company, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined by the Company in its sole discretion.

 

6.           LIMITATION OF LIABILITY. In no event shall the Independent Director be individually liable to the Company or its shareholders for any damages for breach of fiduciary duty as an independent director of the Company, unless the Independent Director’s act or failure to act involves intentional misconduct, fraud or a knowing violation of law.

 

7.           AGREEMENT OF INDEMNITY. The Company agrees to indemnify the Independent Director as follows:

 

(a)           Subject to the exceptions contained in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a party to any Proceeding (other than an action by or in the right of the Company) by reason of the Independent Director’s Corporate Status, the Independent Director shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by the Independent Director in connection with such Proceeding (referred to herein as “INDEMNIFIABLE EXPENSES” and “INDEMNIFIABLE LIABILITIES,” respectively, and collectively as “INDEMNIFIABLE AMOUNTS”).

 

(b)           Subject to the exceptions contained in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a party to any Proceeding by or in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s Corporate Status, the Independent Director shall be indemnified by the Company against all Indemnifiable Expenses.

 

 

  

3

  

 

(c)           For purposes of this Agreement, the Independent Director shall be deemed to have acted in good faith in conducting the Company’s affairs as an independent director of the Company and/or a member of a committee of the Board of the Company, if the Independent Director: (i) exercised or used the same degree of diligence, care, and skill as an ordinarily prudent man would have exercised or used under the circumstances in the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon advise of counsels or other professional advisors for the Company, or upon statements made or information furnished by other directors, officers or employees of the Company, or upon a financial statement of the Company provided by a person in charge of its accounts or certified by a public accountant or a firm of public accountants, which the Independent Director had reasonable grounds to believe to be true.

 

8.           EXCEPTIONS TO INDEMNIFICATION. Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other than the following:

 

(a)           If indemnification is requested under Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent Director failed to act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the best interests of the Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s conduct was unlawful, or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation of law, then the Independent Director shall not be entitled to payment of Indemnifiable Amounts hereunder.

 

(b)           If indemnification is requested under Section 7(b) and

 

(i)           it has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, the Independent Director failed to act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the best interests of the Company, including without limitation, the breach of Section 4 hereof by the Independent Director, the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder; or

 

(ii)           it has been adjudicated finally by a court or arbitral body of competent jurisdiction that the Independent Director is liable to the Company with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including, without limitation, a claim that the Independent Director received an improper benefit or improperly took advantage of a corporate opportunity, the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder with respect to such claim, issue or matter.

 

 

 

  

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9.           WHOLLY OR PARTLY SUCCESSFUL. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that the Independent Director is, by reason of the Independent Director’s Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent Director is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify the Independent Director against those Expenses reasonably incurred by the Independent Director or on the Independent Director’s behalf in connection with each successfully resolved claim, issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

10.           ADVANCES AND INTERIM EXPENSES. The Company may pay to the Independent Director all Indemnifiable Expenses incurred by the Independent Director in connection with any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition of such Proceeding, if the Independent Director furnishes the Company with a written undertaking, to the satisfaction of the Company, to repay the amount of such Indemnifiable Expenses advanced to the Independent Director in the event it is finally determined by a court or arbitral body of competent jurisdiction that the Independent Director is not entitled under this Agreement to indemnification with respect to such Indemnifiable Expenses.

 

11.           PROCEDURE FOR PAYMENT OF INDEMNIFIABLE AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable Amounts, for which the Independent Director seeks payment under Section 7 hereof and the Proceeding of which has been previously notified to the Company and approved by the Company for indemnification hereunder. At the request of the Company, the Independent Director shall furnish such documentation and information as are reasonably available to the Independent Director and necessary to establish that the Independent Director is entitled to indemnification hereunder. The Company shall pay such Indeminfiable Amounts within thirty (30) days of receipt of all required documents.

 

12.           REMEDIES OF INDEPENDENT DIRECTOR.

 

(a)           RIGHT TO PETITION COURT. In the event that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections 7, 9-11 above, and the Company fails to make such payment or advancement in a timely manner pursuant to the terms of this Agreement, the Independent Director may petition the appropriate judicial authority to enforce the Company’s obligations under this Agreement.

 

(b)           BURDEN OF PROOF. In any judicial proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the Independent Director is not entitled to payment of Indemnifiable Amounts hereunder.

 

(c)           EXPENSES. The Company agrees to reimburse the Independent Director in full for any Expenses incurred by the Independent Director in connection with investigating, preparing for, litigating, defending or settling any action brought by the Independent Director under Section 12 (a) above, or in connection with any claim or counterclaim brought by the Company in connection therewith.

 

 

 

  

5

  

 

 

(d)           VALIDITY OF AGREEMENT. The Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section 12 (a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration for this Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

(e)           FAILURE TO ACT NOT A DEFENSE. The failure of the Company (including its Board of Directors or any committee thereof, independent legal counsel, or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable Expenses under this Agreement shall not be a defense in any action brought under Section 12 (a) above.

 

13.           PROCEEDINGS AGAINST COMPANY. Except as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the Company, any Entity which it controls, any director or officer thereof, or any third party, unless the Company has consented to the initiation of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent Director in an action brought against the Independent Director.

 

14.           INSURANCE. The Company may, at its discretion, obtain and maintain a policy or policies of director and officer liability insurance, in an amount not less than $5,000,000, of which the Independent Director will be named as an insured, providing the Independent Director with coverage for Indemnifiable Amounts and/or Indemnifiable Expenses in accordance with said insurance policy or policies (“D&O INSURANCE”); provided that:

 

(a)           The Independent Director agrees that, while the Company has valid and effective D&O Insurance, and except as provided in (c) of this section, Sections 7-13 of this Agreement shall not apply, and the Company’s indemnification obligation to the Independent Director under this Agreement shall be deemed fulfilled by virtue of purchasing and maintaining such insurance policy or policies, in accordance with the terms and conditions thereof and subject to exclusions stated thereon. The Independent Director agrees that the Company shall have no obligation to challenge the decisions made by the insurance carrier(s) (“INSURANCE CARRIER”) relating to any claims made under such insurance policy or policies;

 

(b)           The Independent Director agrees that the Company’s indemnification obligation to the Independent Director under (a) of this section shall be deemed discharged and terminated, in the event the Insurance Carrier refused payment for any Proceedings against the Independent Director due to the acts or omissions of the Independent Director;

 

 

 

 

  

6

  

 

 

(c)           While the D&O Insurance is valid and effective, the Company agrees that it shall indemnify the Independent Director for the Indemnifiable Amounts and Indemnifiable Expenses, to the extent that any Proceedings are coverable by D&O Insurance, but in excess of the policy amount, in accordance with Sections 7-13 of this Agreement; and

 

(d)           While the D&O Insurance is valid and effective, this Section 14 states the entire and exclusive remedy of the Independent Director with respect to the indemnification obligation of the Company to the Independent Director under this Agreement.

 

15.           SUBROGATION. In the event of any payment of Indemnifiable Amounts under this Agreement or the D&O Insurance, the Company or its Insurance Carrier, as the case may be, shall be subrogated to the extent of such payment to all of the rights of contribution or recovery of the Independent Director against other persons, and the Independent Director shall take, at the request of the Company, all reasonable action necessary to secure such rights, including the execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

16.           AUTHORITY. Each party has all necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution, delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by each party hereto:

 

17.           SUCCESSORS AND ASSIGNMENT. This Agreement shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company (including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger or consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit of the heirs, personal representatives, executors and administrators of the Independent Director. The Independent Director has no power to assign this Agreement or any rights and obligations hereunder.

 

18.           CHANGE IN LAW. To the extent that a change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower indemnification than is provided hereunder, the Independent Director shall be subject to such broader or narrower indemnification and this Agreement shall be deemed to be amended to such extent.

 

19.           SEVERABILITY. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and clauses of this Agreement shall remain fully enforceable and binding on the parties.

 

20.           MODIFICATIONS AND WAIVER. Except as provided in Section 18 hereof with respect to changes in applicable law which broaden or narrow the right of the Independent Director to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall be binding unless executed in writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any right under this Agreement shall operate as a current or future waiver by it as to its same or different rights under this Agreement or otherwise.

 

 

 

  

7

  

 

21.           NOTICES. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified or registered mail with postage prepaid, on the third business day after the date en which it is so mailed:

 

If to Independent Director, to: Mr. Wenjie Li, Room 602, Unit 3, Building 2,  129 Yan An San Road, Qingdao, Shandong, China

 

If to the Company, to:  Jpak Group, Inc, 15 Xinghua Road 

Qingdao, Shandong Province; Postal Code 266401    People’s Republic of China, or to

such other address as may have been furnished in the same manner by any party to the others.

 

22.           GOVERNING LAW. This Agreement shall be governed by and construed and enforced under the laws of the State of Nevada.

 

23.           CONSENT TO JURISDICTION. The parties hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in , Nevada for any proceeding arising out of or relating to this Agreement. The parties agree that in any such proceeding, each party shall waive, if applicable, inconvenience of forum and right to a jury.

 

24.           AGREEMENT GOVERNS. This Agreement is to be deemed consistent wherever possible with relevant provisions of the By-Laws and Articles of Incorporation of the Company; however, in the event of a conflict between this Agreement and such provisions, the provisions of this Agreement shall control.

 

25.           INDEPENDENT CONTRACTOR. The parties understand, acknowledge and agree that the Independent Director’s relationship with the Company is that of an independent contractor and nothing in this Agreement is intended to or should be construed to create a relationship other than that of independent contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement between the Independent Director and the Company or as a commitment on the part of the Company to retain the Independent Director in any capacity, for any period of time or under any specific terms or conditions, or to continue the Independent Director’s service to the Company beyond any period.

 

26.           ARBITRATION. This Agreement shall be governed by, and construed in accordance with, the laws of United States without regard to the choice of law principles thereof. Any dispute, controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be settled by arbitration, before one arbitrator in accordance with the rules of the American Arbitration Association then in effect and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The parties agree that any arbitration shall be held in Hong Kong, China. The arbitration and appointing authority will be the Hong Kong International Centre. 

 

 

  

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The arbitration will be conducted by a panel of three arbitrators, one chosen by each party to this Agreement and the third by agreement of the parties; failing agreement within 30 days of commencement of the arbitration proceeding, the Hong Kong International Centre will appoint the third arbitrator. The proceedings will be confidential and conducted in English. The arbitral tribunal will have the authority to grant any equitable and legal remedies that would be available in any judicial proceeding instituted to resolve a disputed matter, and its award will be final and binding on the parties. The arbitral tribunal will determine how the parties will bear the costs of the arbitration. Notwithstanding the foregoing, each party will have the right at any time to immediately seek injunctive relief, an award of specific performance or any other equitable relief against the other party in any court or other tribunal of competent jurisdiction. During the pendency of any arbitration or other proceeding relating to a dispute between the parties, the parties will continue to exercise their remaining respective rights and fulfill their remaining respective obligations under this Agreement, except with regard to the matters under dispute. Prior to initiation of arbitration, the aggrieved party will give the other party written notice, in accordance with this Agreement, describing the claim as to which it intends to initiate arbitration.

 

27.           ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the Company and the Independent Director with respect to the subject matter hereof, and supersedes all prior understandings and agreements with respect to such subject matter.

 

IN WITNESS WHEREOF, the parties hereto have executed this Independent Director Agreement as of the day and year first above written.

 

	  	  
	
AGREED

	
AGREED

	  	  
	
Jpak Group, Inc.

	
Independent Director

	  	  
	  	  
	  	  
	
/s/  Yijun Wang

	

/s/  Wenjie Li

	
Name:  Yijun Wang

	
Name: Wenjie Li

 

	
Title:   CEO

	  
	  	  

 

  

9

  

SCHEDULE A

 

I           POSITION:

 

INDEPENDENT DIRECTOR.

 

II.           COMPENSATION:

FEES. For all services rendered by the Independent Director pursuant to this Agreement, both during and outside of normal working hours, including but not limited to, attending all required meetings of the Board or applicable committees thereof, executive sessions of the independent directors, reviewing filing reports and other corporate documents as requested by the Company, providing comments and opinions as to business matters as requested by the Company, the Company agrees to pay to the Independent Director a fee in cash of $1,000 per month during the Term (the “Base Fee”).  The Base Fee shall be paid in cash to the Independent Director on a monthly basis in equal installments on the last day of each calendar month. I

 

EXPENSES. During the term of the Independent Director’s service as a director of the Company, the Company shall promptly reimburse the Independent Director for all expenses incurred by him/her in connection with attending (a) all meetings of the Board or applicable committees thereof, (b) executive sessions of the independent directors, and (c) stockholder meetings, as a director or a member of any committee of the Board , provided that any such expenses over $1,000 shall be approved by the Company in writing in advance.  In addition, the Independent Director shall rely on the Company to arrange all hotel accommodations in connection with any such meetings the Independent Director must attend. The amount of such expenses eligible for reimbursement by the Company during a calendar year shall not affect such expenses eligible for reimbursement by the Company in any other calendar year, and the reimbursement of any such eligible expenses shall be made on or before the last day of the calendar year next following the calendar year in which the expense was incurred.

 

NO OTHER BENEFITS OR COMPENSATION. The Independent Director acknowledges and agrees that he/she is not granted and is not entitled to any other benefits or compensation from the Company for the services provided under this Agreement except expressly provided for in this Schedule A.

	  	  
	
AGREED

	
AGREED

	  	  
	
Jpak Group, Inc.

	
Independent Director

	  	  
	  	  
	  	  
	
/s/  Yijun Wang

	
/s/  Wenjie Li

	
Name:  Yijun Wang

	
Name: Wenjie Li

	
Title:   CEO

	  

 

  

10

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