Document:

ex10_01.htm

EXHIBIT 10.01

 

Final 12/28/2010

CONSULTING AND CONFIDENTIALITY AGREEMENT

THIS CONSULTING AND CONFIDENTIALITY AGREEMENT  (the “Agreement”), dated as of December 28, 2010 and effective December 1, 2010,  is made and entered into by and between Integral Technologies, Inc., a Nevada corporation, (the “Company” or “Integral”) and James Eagan, individually, (the “Consultant”).

WHEREAS, the Company desires to engage Consultant to provide certain consulting services as the Company may direct; and

WHEREAS, the Consultant is willing to be engaged by the Company as a consultant and to provide such services in assisting in the commercialization of Integral’s ElectriPlastTM and other technologies.

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

1.             Consulting.  The Company hereby retains Consultant, and Consultant hereby agrees to be available as a consultant to the Company, upon the terms and subject to the conditions contained herein.  During the Consultant Term (as hereinafter defined), Consultant shall provide certain consulting services to the Company as requested by management.

2.              Term.  Subject to the provisions for termination hereinafter provided, the term of this Agreement shall commence on the date set forth above (the “Effective Date”) and shall continue until November 30, 2013 (the “Consultant Term”).

3.              Compensation.  In consideration of the Services (as hereafter defined) to be rendered by Consultant hereunder, during the Consultant Term the Company shall pay and grant to Consultant, and Consultant agrees to accept the following:

(a)            As a consulting fee, $14,000 per month (the “Consulting Fee”) payable at the beginning of each month.  The decision on whether the Consulting Fee will be increased will be at the sole discretion of the Company.  The Company shall pay the Consulting Fee to the Consultant without offset, deduction or withholding of any kind or for any purpose. The Consultant shall pay any and all taxes, including, federal, state and local taxes, incurred by him with respect to the Consulting Fee.

(b)            On the execution of this Agreement, the amount of 150,000 common shares of the Company and, on the six-month anniversary of the execution of this Agreement, an additional 100,000 common shares of the Company, all duly issued.

  

  

  

(c)            On the execution of this Agreement, the Company shall grant to Consultant 600,000 options for the right to purchase common stock of the Company. The Grant of Option forms part of this Agreement and is attached as Exhibit A. These options shall be priced and vested pursuant to the Grant of Option and as indicated below.

	
Number of Options

	  	
Vesting Date

	  	
Expiry Date

	  	
Option Price

	
100,000

	  	
June 1, 2011

	  	
June 1, 2014

	  	
$0.85

	
100,000

	  	
December 1, 2011

	  	
December 1, 2014

	  	
$0.85

	
100,000

	  	
June 1, 2012

	  	
June 1, 2015

	  	
$0.85

	
100,000

	  	
December 1, 2012

	  	
December 1, 2015

	  	
$0.85

	
100,000

	  	
June 1, 2013

	  	
June 1, 2016

	  	
$0.85

	
100,000

	  	
December 1, 2013

	  	
December 1, 2016

	  	
$0.85

            (d)            On the first year anniversary of the execution of this Agreement the Company shall grant to Consultant 1,250,000 options for the right to purchase common stock of the Company. The Grant of Option forms part of this Agreement and is attached as Exhibit A. These options shall be priced and vested pursuant to the Grant of Option and as indicated below.

	
Number of Options

	  	
Vesting Date

	  	
Expiry Date

	  	
Option Price

	
250,000

	  	
December 1, 2011

	  	
December 1, 2014

	  	
$0.001

	
250,000

	  	
June 1, 2012

	  	
June 1, 2015

	  	
$0.001

	
250,000

	  	
December 1, 2012

	  	
December 1, 2015

	  	
$0.001

	
250,000

	  	
June 1, 2013

	  	
June 1, 2016

	  	
$0.001

	
250,000

	  	
December 1, 2013

	  	
December 1, 2016

	  	
$0.001

(e)            The consideration to be given by Consultant for the Consulting Fee, the issue of common stock and the Grant of Options shall include the following services (the “Services”) over the Consultant Term:  Consultant’s Services shall consist of those duties and responsibilities as may be established and directed by the management of the Company. The Company and the Consultant intend that the Services shall be rendered primarily from the Consultant's home office in Virginia and may be provided in person at meetings or via telephone or e-mail or other written communications.

4.              Termination.

(a)            The Consultant Term will end on November 30, 2013 (the “Expiration Date”), unless sooner terminated (i) by the death of James Eagan or upon Notice of Termination (as defined below) delivered to Consultant as a result of his Disability (as defined in Section 4(f) below), (ii) by the Company at any time prior to the Expiration Date for Cause (as defined in Section 4(d) below), or (iii) by the Consultant for material breach of this Agreement by the Company, which is not cured after 30 days’ written notice of such breach by Consultant to Company.   Any termination of the Consultant Term by the Company or by Consultant (other than termination upon James Eagan’s death or for breach by the Company) must be communicated by written “Notice of Termination” to the other party hereto.  “Termination Date” means (i) if the Consultant Term has not already been terminated by such date, the Expiration Date, (ii) if the Consultant Term is terminated by James Eagan’s death, the date of James Eagan’s death, (iii) if the Consultant Term is terminated upon James Eagan’s Disability, by the Company, the date specified in the Notice of Termination, (iv) if the Consultant Term is terminated by the Company for Cause, upon receipt of Notice of Termination by James Eagan;   (v) if the Consultant Term is terminated by James Eagan, upon the expiration of 30 days following receipt by the Company of written  notice of a breach that has not been cured by the Company within such period.

  

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(b)            If the Consultant Term is terminated by the Company for Cause, the Company will pay Consultant only those amounts due as identified in paragraph 3(a), prorated, to the Termination Date and any unpaid expenses as of the Termination Date.  Upon delivery of the payment described in this Section 4(b), the Company will have no further obligation to Consultant under this Agreement. Consultant shall retain all vested stock options granted him as of the Date of Termination.

(c)            If Consultant Term is terminated by the Consultant under paragraph 4(a) for material breach of this Agreement by the Company, the Company will pay Consultant the full amount of the remaining compensation for the entire Consultant Term as identified in Section 3(a) as compensation payments become due monthly, plus all unpaid expenses as of the Termination Date.  Consultant shall retain all vested stock options granted him as of the Date of Termination.

(d)            “Cause” means any one of the following: (i) a material breach by Consultant of this Agreement, (ii) Consultant’s conviction of, guilty plea to, or confession of guilt of, a felony, but expressly excluding misdemeanor traffic violations, (iii) fraudulent, dishonest or illegal conduct, gross negligence or willful misconduct by Consultant in the performance of Services for or on behalf of the Company or any of its subsidiaries or any other conduct detrimental to the business, operations or reputation of the Company or any of its subsidiaries as determined by the Company’s board of directors (the “Board”)  in good faith, regardless of whether such conduct is within the scope of Consultant’s duties, (iv) Consultant’s misappropriation of funds, (v) Consultant engaging in conduct involving an act of moral turpitude, (vi) failure to comply with the directions of the Board, provided that such directions are reasonable, lawful, and consistent with Consultant’s duties and responsibilities hereunder, (vii) Consultant’s failure to perform in any material respect all of Consultant’s obligations and duties pursuant to this Agreement, (viii) Consultant’s failure to achieve performance and other goals established by the Board in good faith from time to time (except where such failure results from extraordinary circumstances outside of Consultant’s control (i.e. force majeure).

(e)            “Disability” means any accident, sickness, incapacity or other physical or mental disability which prevents James Eagan from performing substantially all of the duties Consultant has been assigned by the management of the Company or any of its subsidiaries for either (i) 30 consecutive days or (ii) 30 days during any period of 365 consecutive days, in each case as determined in good faith by the Board.

5.              Reimbursement.  The Company will reimburse Consultant for all reasonable out-of-pocket expenses incurred in connection with this Agreement..

  

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6.              Confidential Information.   Forming part of this Agreement as Exhibit B, and to be executed by the Company and James Eagan, is the Company’s standard Non-Disclosure Agreement.

7.              Independent Contractor.  It is understood and agreed that this Agreement does not create any relationship of association, partnership or joint venture between the parties, nor constitute either party as the agent or legal representative of the other for any purpose whatsoever; and the relationship of Consultant to the Company for all purposes shall be one of independent contractor.  Neither party shall have any right or authority to create any obligation or responsibility, express or implied, on behalf or in the name of the other, or to bind the other in any manner whatsoever.

8.          Ownership. Consultant agrees that all patentable material, notes, records, drawing, designs, improvements, developments, discoveries and trade secrets (collectively, “Material”) conceived, made or discovered by Consultant, solely or in collaboration with others, while providing services to  the Company and  the period of this Agreement which relate in any manner to the business of the Company that Consultant may be directed to undertake or which Consultant may become associated with the Company in performing the Services hereunder, are the sole property of the Company.  Consultant further agrees to assign (or cause to be assigned) and does hereby assign fully to the Company all Material and any patents or other intellectual property rights relating thereto.

9.          Further Assurances.  Consultant agrees to assist the Company, or its designee, at the Company’s expense, in every reasonable and proper way to secure the Company’s rights in ElectriPlastTM and applications related thereto, and any patents or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights in order to assign and convey to the Company, its successors, assigns and nominees the sole and exclusive right, title and interest in and to such Material, and any patents or other intellectual property rights relating thereto,  Consultant further agrees that Consultant’s obligation to execute or cause to be executed, when it is in Consultant’s power to do so, any instrument or papers pursuant to this Agreement shall continue after the termination of the Agreement.

10.            Work Made for Hire.  The Company is engaging the services of Consultant to provide Services as described herein for or on behalf of the Company and/or for a customer or customers of the Company. Consultant recognizes and agrees that all work and products that Consultant creates or develops within the scope of this engagement will be Work Made for Hire that belongs to the Company and will remain the property of the Company.  The Company will exclusively own, solely and completely, any work, process, product, idea or concept – whether such may be protected by patent or not – that Consultant creates, conceives or develops, in whole or in part, within the scope of Consultant’s engagement by the Company. To the extent that Consultant’s work for the Company may not be deemed a Work Made For Hire, Consultant hereby assigns all of his right, ownership, interest and patents in such works completely and exclusively to the Company.

  

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11.            Representations and Warranties

(a)            Representations and Warranties of the Company. The Company represents and warrants to and covenants with the Consultant that:

(i) Incorporation, Good Standing, and Due Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada; has the corporate power and authority to own its assets and to transact the business in which it is now engaged and in which it proposes to be engaged; and in good standing under the laws of the State of Washington and of each other jurisdiction in which qualification is required.

(ii) Corporate Power and Authority. The execution, delivery and performance by the Company of this Agreement have been duly authorized by all necessary action of the Company and do not and will not (A) require any consent or approval of the Company's interest holders or any other body, entity or person; (B) contravene the Company's articles of incorporation, by-laws, shareholders’ agreement or similar organizational documents of the Company; (C) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree determination or award presently in effect having applicability to the Company; (D) result in a breach of or constitute a default under any agreement or other instrument to which the Company is a party.

(iii) Legally Enforceable Agreement. This Agreement is the legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors' rights generally.

(b)            Representations and Warranties of the Consultant. The Consultant represents and warrants to and covenants with the Company that:

(i) Power and Authority. The execution, delivery and performance by the Consultant of this Agreement, does not and will not (A) violate any provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to the Consultant; (ii) result in a breach of or constitute a default under any agreement or other instrument to which the Consultant is a party.

(ii) No Third Party Approval, etc. The execution, delivery and performance by the Consultant of this Agreement do not and will not require any consent or approval of any third party individual or entity.

(iii) Legally Enforceable Agreement. This Agreement is the  legal, valid and binding obligation of the Consultant, enforceable against him in accordance with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors' rights generally.

12.            Indemnity by the Company.  The Company shall protect, defend, indemnify and hold Consultant and his assigns and attorneys, accountants, agents, consultants and employees harmless from and against all losses, liabilities, damages, judgments, claims, counterclaims, demands, actions, proceedings, cost and expenses (including reasonable attorneys fees) of every kind and character resulting from, relating to or arising out of (i) the inaccuracy, non-fulfillment or breach of any representation warranty, covenant or agreement made by the Company; (ii) any legal action, including any counterclaim, representation, warranty, covenant or agreement made by the Company; or (iii) negligent or willful misconduct, occurring during the term hereof, or thereafter, with respect to any decisions made by the Company; or (iv) any action by third parties.

  

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13.            Indemnity by the Consultant.   Consultant shall protect, defend, indemnify and hold the Company and its assigns and attorneys, accountants, agents, consultants, officers, directors, affiliates, and employees harmless from and against all losses, liabilities, damages, judgments, claims, counterclaims, demands, actions, proceedings, cost and expenses (including reasonable attorneys fees) of every kind and character resulting from, relating to or arising out of (i) the inaccuracy, non-fulfillment or breach of any representation warranty, covenant or agreement made by the Consultant; (ii) any legal action, including any counterclaim, representation, warranty, covenant or agreement made by the Consultant or any third party; (iii) negligent or willful misconduct, occurring during the Term hereof, or thereafter, with respect to any decisions made by the Consultant; or (iv) any action by third parties.

14.            Conflict of Interest.  Consultant and the Company hereby agree that there is no conflict of interest in connection with the retention by the Company of the Consultant pursuant to this Agreement or the acceptance of this Agreement by the Consultant.

15.            Waiver of Breach.  The waiver by any party hereto of a breach of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach.

16.            Notices.  All notices and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given (i) when delivered in person, (ii) one (1) business day after being mailed with a nationally recognized overnight courier service, or (iii) three (3) business days after being mailed by registered or certified first class mail, postage prepaid, return receipt requested, to the parties hereto at:

	
  

	
If to the Company, to:

	
Integral Technologies, Inc.

805 W. Orchard Drive, Suite 7

Bellingham, WA 98225

Fax: 360-752-1983

Attn: William S. Robinson, Chief Executive Officer

	
  

	
If to the Consultant, to:

	
Mr. James Eagan

46347 Pryor Square

Potomac Falls,

20165

17.            Entire Agreement; Amendments.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all other communications, whether written or oral. This Agreement may be modified or amended only by a writing signed by the party against whom enforcement is sought.

  

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18.            Severability.  The invalidity of all or any part of any provision of this Agreement shall not render invalid the remainder of this Agreement or the remainder of such provision.  If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

19.            Governing Law; Consent to Jurisdiction.  This Agreement shall be governed by and construed in accordance with the law of the State of Washington without giving effect to the principles of conflicts of law thereof.  The parties each hereby submit themselves for the sole purpose of this Agreement and any controversy arising hereunder to the exclusive jurisdiction of the state and/or federal courts in the State of Washington.

20.            Headings/Gender.  The headings herein are inserted only as a matter of convenience and reference, and in no way define, limit or describe the scope of this Agreement or the intent of the provisions thereof.  Whenever the context shall so require, all words herein in the male gender shall include the female or neutral gender, and vice versa, and all singular words shall include the plural, and vice versa.

21.            Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.  Signatures evidenced by facsimile transmission will be accepted as original signatures.

22.            Other Instruments.  The parties shall execute such other and further instruments as are or may become necessary or convenient to effectuate and carry out this Agreement.

23.            Assignment. This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by Consultant without the prior written consent of the Company. Any assignment or delegation of rights, duties or obligations hereunder made without the prior written consent of the Company shall be void and of no effect.

24.        Successors, Assigns et al.  This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and their respective successors, assigns, heirs, executors, administrators or personal representatives, as appropriate.

25.            Dispute Resolution and Governing Law. Company and Consultant agree to initiate and maintain any legal action in jurisdictions designated in Section 21 and below, and irrevocably consent to exclusive personal jurisdiction and venue therein. Should Consultant bring legal action against the Company, the Consultant shall irrevocably agree that it will be brought and maintained on an individual basis (and not consolidated with similar cases, such as class actions, aggregated actions, or mass actions).  Any action brought by Company or Consultant shall be filed within one (1) year after the claim arises or be barred. Furthermore, except for injunctive relief, all disputes arising out of or relating to this Agreement or the subject matter thereof involving less than one million dollars ($1,000,000.00) shall be submitted to arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules and heard before a single arbiter.   The parties agree that if an issue arises as to whether any matter related to this Agreement is subject to arbitration, the arbiter shall decide said issue.  The arbiter shall be selected according to the procedures set by AAA.  If a party to the arbitration fails or refuses to pay the fees of AAA, then any other party to the arbitration may pay said fees and proceed with the arbitration.  The location of the arbitration shall be in Seattle, Washington. The arbiter’s award may be entered as a judgment in any court of competent jurisdiction.  The Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings in the arbitration.  Disputes involving amounts exceeding the above dollar limit are not subject to arbitration and may be taken directly to court by either party. The parties agree that U.S. District Courts can hear cases involving copyright issues between them.

  

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26.            Injunctive Relief. The parties acknowledge that a violation or attempted violation of this Agreement may cause damage to the Company or Consultant as will be irreparable, the exact amount of which would be difficult to ascertain and for which there may be no adequate remedy at law. Accordingly, the parties agree that the Company or Consultant, as appropriate, shall be entitled to an injunction issued by any court of competent jurisdiction, restraining such violation or attempted violation of this Agreement by the party complained of or its affiliates, partners, or agents. The parties agree that no bond or other security shall be required in connection with such injunction.

27.            Survival of Representations, Warranties and Covenants.  Unless otherwise specifically indicated otherwise, all representations, warranties and covenants contained herein or made pursuant to this Agreement, including those in Section 12 hereof, shall survive and shall continue in full force and effect to the extent necessary to effectuate the purposes of this Agreement.

  

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first above written.

	  	
INTEGRAL TECHNOLOGIES, INC.

	  	  
	  	
By: /s/

	  	

       William S. Robinson Chairman and CEO

	  	  
	  	
JAMES EAGAN

	  	  
	  	
By: /s/

 

 

9ex10_8.htm

Exhibit 10.8

 

CONSULTING AND SERVICES AGREEMENT

 

THIS CONSULTING AND SERVICES AGREEMENT (this “Agreement”) dated as of June ___, 2010 (“Effective Date”) is entered into by and between GreenHouse Holdings, Inc., a publicly-owned Nevada corporation (the “Company”), GreenHouse Soluciones [Sociedad Anonima], a corporation formed under the laws of Mexico and wholly-owned subsidiary of the Company (“GreenHouse-Mexico”) and Viego Solutions, S. de R.L. de C.V., a corporation formed under the laws of Mexico (the “Contractor”). The Company, GreenHouse-Mexico and the Contractor may be referred to herein individually as a “Party” or collectively as the “Parties”.

W I T N E S S E T H:

WHEREAS, the Company is a global, energy solutions and ethanol fuel provider whose common stock, par value $0.001 per share (the “Common Stock”), trades on the Over the Counter Bulletin Board under the symbol “GRHU.OB”;

WHEREAS, the Company has formed Greenhouse-Mexico in order to exploit green solutions in the United Mexican States with respect to composting, ethanol production and other sustainable and alternative energy solutions (the “Business Plan”); and

 

WHEREAS, the Company desires to retain the Contractor to assist the Company in executing its Business pursuant to the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree as follows:

 

1.      CONTRACTOR SERVICES.  The Company hereby engages Contractor to provide the following services (the “Services”): To develop one or more plans, and for assistance in executing the agreed-upon plans in United Mexican States (the “Territory”), for:

 

(a)    establishing, operating and maintaining a composting operation in the Territory;

(b)    establishing, operating and maintaining an ethanol production operation in the Territory; and

  

 

  

(c)    marketing, selling and distributing the Company’s vapor compression, rotary collider, aquaponic and other sustainable and alternative energy solutions to the Territory’s market.

 

2.      TERM.  This Agreement shall commence on the Effective Date and continue for a period of three (3) years (the “Term”).  Contractor acknowledges and agrees that this Agreement is an exclusive engagement of Contractor’s services as defined in Section 1 herein.  Following the expiration of the Term, unless terminated as set forth in Section 17 hereof, GreenHouse-Mexico will grant the Contractor a thirty (30) day right of first refusal to for any agreement to provide the Services set forth in Section 1 hereof.  If the Contractor does not respond within three (3) working days to a written offer for the Services, then GreenHouse-Mexico has the right to enter into an agreement for the Services with any other party.

3.      INTELLECTUAL PROPERTY.  Contractor shall obtain the Company’s prior, written approval before disseminating or distribution any written materials bearing the Company’s name or any of its marks.  The Company shall retain exclusive ownership of all right, title and interest to all intellectual property rights and all of its material.

4.      NON-EXCLUSIVITY. The Company and GreenHouse-Mexico reserve the right to market, distribute and sell their services and products, directly or indirectly, within and outside of the Territory, and nothing in this Agreement shall limit in any manner their marketing or distribution activities, or their right to sell directly or appoint other dealers, distributors, licensees or agents within or outside the Territory to sell services and products related to the Business or any other business.

5.      INDEPENDENT CONTRACTOR STATUS.

(a)   During the term hereof, Contractor shall be engaged as an independent contractor by Company during the term hereof for the Services as defined below, and to be determined from time to time by the Company.

  

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(b)   Nothing in this Agreement shall be construed as creating an employee, agent, servant, partner, joint venturer, or have any other capacity or relationship with or to Company, as a guarantee of future employment, or limit either party’s right to terminate this Agreement in accordance with its terms. Contractor shall not receive, nor have any claim of any kind to or against Company, for wages, health or other insurance benefits, vacation benefits and/or pension or retirement benefits, each of which Contractor hereby expressly and knowingly waives.  Further, Contractor acknowledges and agrees, as an independent contractor, she shall not be covered by worker’s compensation insurance and she further waives and relinquishes any and all rights to claim and receive benefits on account of injuries which may occur during the term of this Agreement.  Contractor assumes full responsibility for the actions of its personnel while they are performing work pursuant to this Agreement and shall be solely responsible for their supervision, daily direction and control, payment of salary (including withholding of income taxes and social security), workers compensation, disability benefits and the like.

6.      SERVICES.  Contractor will be entitled to use the following designations for its designated personnel in performing the Services:

	
  

	
·

	
Ing. Sergio A. Gonzalez Rivera; Director General América Latina;

	
  

	
·

	
Carlos M. Gonzalez Rivera, Director Comercial América Latina; and

	
  

	
·

	
Alejandro (Alex) Viecco, Director de Marketing y Relaciones  Publica América Latina

7.      COMPENSATION.  As compensation for the Services to be rendered by Contractor, during the term of this Agreement, the Company shall pay the Contractor:

 

(a)    a monthly fee of $4,000 per month;

(b)    a monthly fee of $2,200 per month to retain the services of Dr. Iñiguez to assist the Contractor in developing composting operations,  providing technical expertise and introductions to potential client and customers to the Business of the Company; and

(c)    a monthly sales commission (the “Commission”), payable one month in arrears, in accordance with the following formula:

  

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“Gross Cash Receipts” (cash receipts actually collected from sales made by the Contractor) less the “Direct Operating Costs Quotient” (a number equal the greater of actual Direct Operating Costs or 25% of Gross Cash Receipts) less the “Overhead Costs Quotient” (a number equal to the greater of actual overhead costs or 15% of Gross Cash Receipts) equals the “Commission Base”

Commissions shall be calculated in accordance with the following ratios:

(i)             15% of Commission Base on annual Gross Cash Receipts up to $3,000,000; or

(ii)             7.5% of Commission Base on annual Gross Cash Receipts over $3,000,000;

(d)    an annual grant ("Option Award") to the Contractor of options to acquire 10,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), for every $1,000,000 of Contractor’s budgeted annual revenue (“Budgeted Revenue”). If contractor exceeds the Budgeted Revenue, then additional options to acquire 10,000 shares of the Company’s Common Stock for every $1,000,000 in annual revenue in excess of the Budgeted Revenue will be granted to Contractor on the same terms and conditions ("Make Up Award"). However, notwithstanding anything to the contrary contained herein, the annual cumulative total of the Option Award and Make Up Award shall not exceed one percent (1%) of the number of shares of Common Stock issued and outstanding on the date of vesting. In such a case the number of shares of Common Stock underlying the Option Award or Make Up Award shall be reduced until such amount is equal to 1% of the number of shares of Common Stock issued and outstanding. Each Option Award or Make Up Award will vest on the last day of the Quarter in which each $1,000,000 in budgeted annual revenue is achieved (the “Vesting Date”). The exercise price of the Common Stock will be the average trading price of the Common Stock for the ten (10) trading days immediately before the communication of each year's Budgeted Revenue to the Contractor. The options will expire within three (3) years from the date of vesting.

  

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(e)    if  Company sells any part of the operations defined in Section 1 above, then Contractor shall be entitled to the compensation it would have earned under sections (c) and (d) above based on that that portion of the sales price that is based on a multiple of Gross Cash Receipts. For example, if $100 Million of the sales price is based on Gross Cash Receipts of $20 Million, the multiple shall equal 5 ($100M / $20M = 5), then contractor shall be entitled to compensation in the example below:

 

 

[Missing Graphic Reference]

 

 

The cash component of any compensation due under section (c) will be paid to Contractor under the same terms and conditions that the Company receives cash from the purchaser of the Company’s operations, and the options issued under section (d) will have an exercise price of the average trading price of the Common Stock for the ten (10) trading days immediately preceding the sale.

8.      CONFIDENTIAL INFORMATION.  Contractor acknowledges that it shall have access to confidential and proprietary information of Company and its affiliates including, without limitation, certain proprietary concepts, designs, items, ideas, business matters, personal information and any other matters and information learned by or disclosed to Contractor during the course of his/her engagement by company, all of which is hereby collectively termed “Confidential Information,” including without limitation ideas, concepts, images, documents, sketches, samples, mock-ups, techniques, formulas, designs, prototypes, business models, business structures, business plans, information pertaining to the financing, capitalization, operation, production, development of the Company’s business, ideas, concepts, formulas, methods, and other such matters and information, agreements, dealings, ventures, business endeavors, and business opportunities, the identity of investors in Company, its owners and affiliates, the holdings, intangible assets, and intellectual property portfolio of Company and its affiliates (including trademarks and trade names, processes, concepts, formulae, inventions, data, forecasts, and other forms of material non-public information of such companies), the past, present and future confidential business relationships, client lists, customer lists, sponsor lists, investment opportunities and investment plans of Company and its affiliates, and the historical financial information, financial projections, strategic plans, and marketing research or other customer information. Contractor hereby acknowledges and agrees that the Confidential Information constitutes trade secrets and/or proprietary information of Company.  All such Confidential Information shall constitute the sole and exclusive property of Company and its assigns, without exception, and Company and its assigns shall be the sole owner of all patents, registrations and other rights in connection therewith, in perpetuity, throughout the Universe.

  

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9.      NON-DISCLOSURE.  Contractor shall, at all times during the term hereof and thereafter, hold in strict confidence and not disclose to any person or entity without the express prior authorization of Company, any and all Confidential Information of Company.  Contractor agrees that, other than as required in the course of its work with Company, it shall not at any time (including after termination of his employment here­under) make use of any of the above, or use such Confidential Information for his/her own benefit or to the detriment of Company.  Upon termination of this Agreement, Contractor shall deliver to Company any and all documents and tangibles including without limitation all records, notebooks, work papers, data, computer disks or CDs, and all similar repositories containing any information concerning Company, whether prepared by Contractor, Company, or anyone else.

10.    NON-SOLICITATION OF COMPANY CLIENTS.  Contractor further agrees that during the term hereof and for a period of no less than three (3) years after termination or cessation of this Agreement, for any reason, Contractor shall not, directly or indirectly, for itself, or as an agent, or on behalf of or in conjunction with any other person, firm, partnership, corporation or other entity, induce or entice any clients, employees, independent contractors, or its affiliates of Company to leave the same, or cause or assist anyone else in doing so.

  

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11.    DERIVATIVE WORKS.  If the Work being performed by Contractor at Company's request result in new derivative works based on, arising from, or embodying any portion or part of the Confidential Information, then those derivative works shall be deemed to have been done as a work made for hire within the meaning of the copyright laws of the United States, and any foreign jurisdiction recognizing such right of authorship, for the Company, Contractor hereby assigns to the Company all right, title and interest to the exclusive rights to the works free from any claims of Contractor or any third party.  At any time and upon Company’s request, Contractor shall execute an assignment of copyright in a form reasonably acceptable to the Company as evidence of the foregoing transfer.  Contractor hereby authorizes and appoints the Company as Contractor's attorney-in-fact.

12.   CONTRACTOR’S REPRESENTATIONS/WARRANTIES.

 

(a)   Contractor hereby represents and warranties that she has the authority and power to enter into this Agreement, has the applicable license to perform the Work, and said license is current and active; and

(b)   Contractor represents and warrants that the performance of the Services pursuant to this Agreement does not violate any agreement or obligation between the Contractor and a third party.

13.    INDEMNIFICATION.  Contractor hereby indemnifies, defend and holds harmless the Company, its shareholders, employees, agents, and representatives, contractors free and harmless from any and all claims, actions, losses, damages, liabilities, penalties, judgments, obligations, awards or costs (including legal fees and expenses) of any kind or natures whatsoever, based upon or arising out of ( directly or indirectly) the performance or nonperformance of the Contractor’s obligations in connection with this Agreement or breach of any term herein.  This indemnification and hold harmless is in addition to whatever rights of indemnity the Company may otherwise.

  

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14.    ASSIGNMENT.  Contractor may not assign, sub-contract or transfer any of its rights or obligations hereunder without the prior written consent of Company.  All provisions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns.

15.    JURISDICTION AND VENUE.  This Agreement shall be governed by and construed according to the laws of the state of California.  Any dispute or controversy arising from this Agreement or its interpretation shall be arbitrated by a sole arbitrator per the Rules of Commercial Arbitration of the American Arbitration Association and shall be arbitrated in the State of California, County of Los Angeles.  The prevailing party shall be awarded its costs of suit, including reasonable attorney’s fees, any and all arbitration and filing fees, travel expenses, costs of discover, expert witnesses, and any other such fees and expenses incurred.  Such judgment, including any award of costs and/or fees, shall be binding upon the parties and may be entered by any court having competent jurisdiction thereof.

16.    INJUNCTIVE RELIEF.  Contractor acknowledges and agrees that Company’s remedy at law for any breach of his obligations hereunder would be inadequate, and agrees and consents that temporary and permanent injunctive relief may be granted in any arbitration which may be brought to enforce any provisions of this Agreement without the necessity of proof of actual damage.  Note, however Company’s right to seek injunctive relief shall not preclude, limit, waive, or prevent it from seeking further and alternative relief or damages.

17.    TERMINATION OF AGREEMENT.

 

(a)    Default and Termination.  The failure of either Party to comply with the terms of this Agreement shall constitute a default.  Upon default by one Party, the other Party shall send written notice of termination to the defaulting Party.  Such notice shall clearly specify the nature of default.

  

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(b)   Default for Non-Payment. If the default is due to the Company’s non-payment of payment obligations under this Agreement, the Contractor shall provide five (5) business days to cure the default.  If the default for non-payment is not cured within thirty (30) business days, this Agreement shall terminate at midnight of the thirtieth (30th) day following receipt of the notice of termination.

 

(c)   Other Defaults. If the default is for any reason other than non-payment, the non-defaulting Party shall provide the defaulting Party thirty (30) days to cure the default.  If such default is reasonably capable of being cured within thirty (30) days but is not cured within thirty (30) days, the Agreement shall terminate at midnight of the thirtieth (30th) day following receipt of the notice of termination.  In the case of any such default that cannot reasonably be cured within thirty (30) days, this Agreement shall not terminate so long as the defaulting Party has given written notice of the extension to the other Party and the defaulting Party has commenced and is diligently pursuing a cure.  Evidence of such cure and its diligent pursuit shall be provided from the Party determined to be default to the reasonable satisfaction of the other Party.

 

(d)   Convenience. The Parties may agree to terminate this Agreement for its convenience upon written agreement executed by both Parties.

 

(e)   Rights upon Termination. In the event this Agreement is terminated for either material breach or convenience, the Company shall pay Contractor for all compensation incurred up to the date of termination.

(f)    Survival.  Termination or expiration of this Agreement shall not release either Party from any liabilities or obligations set forth in this Agreement which (i) the Parties have expressly agreed shall survive any such termination or expiration or (ii) remain to be performed or by their nature would be intended to be applicable following such termination or expiration, including but not limited to the provisions set forth in Sections 3, 8, 9, 10, 11 and 14.

  

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18.    NOTICES.   Any written notice required or permitted to be given shall be deemed delivered either when personally delivered or when mailed by first class mail, postage prepaid, or overnight carrier (UPS, FedEx, DHL) to the addresses set forth below:

	
IF TO CONTACTOR:

	  	
IF TO COMPANY:

	  	  	  
	  	  	
GreenHouse Holdings, Inc.

	  	  	
5171 Santa Fe Street, Suite I

	  	  	
San Diego, CA 92109

	  	  	
Attention: Justin Farry

19.    SEVERABILITY.  If any provision of this Agreement is determined to be invalid, illegal or unenforceable by any governmental entity, the remaining provisions of this Agreement to the extent permitted by law shall remain in full force and effect.

20.    HEADINGS.  The headings contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of this Agreement or any provision hereof.

21.    ENTIRE AGREEMENT.  This Agreement, constitutes a single, integrated written contract expressing the entire agreement of the Parties concerning the subject matter hereof.  No covenants, agreements, representations or warranties of any kind whatsoever have been made by any party to this Agreement except as specifically set forth in this Agreement.  All prior agreements, discussions and negotiations have been and are merged and integrated into, and are entirely superseded by this Agreement.  No amendment or modification made hereto shall be valid without a writing signed by the Parties hereto.

 

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

	
GREENHOUSE HOLDINGS, INC.:

	  	
CONTRACTOR:

	  	  	  	  	  
	
By:

	  	  	
By:

	  
	  	
Name: Russ Earnshaw

	  	  	
Name: Alex Viecco

	  	
Title: President

	  	  	
Title:

	  	  	  	  	  
	
GREENHOUSE SOLUCIONES [__________]

	  	  	  	  	  
	
By:

	  	  	  	  
	  	
Name:

	  	  	  
	  	
Title:

	  	  	  

 

 

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