Document:

Unassociated Document

    

     

     

    
      
Exhibit
        10.4

      

        

        

        VEMICS,
          INC.

         

        2007
          EQUITY COMPENSATION PLAN

         

        NONQUALIFIED
          STOCK OPTION GRANT

         

        This
          STOCK OPTION GRANT, dated as of ____________ (the “Date of Grant”), is delivered
          by VEMICS, INC. (the “Company”) to ________________ (the “Grantee”).

         

        RECITALS

         

        A. The
          VEMICS, INC. 2007 Equity Compensation Plan (the “Plan”) provides for the grant
          of options to purchase shares of common stock of the Company. The Board
          of
          Directors of the Company (the “Board”) has decided to make a stock option grant
          as an inducement for the Grantee to promote the best interests of the Company
          and its shareholders. A copy of the Plan is attached.

         

        B. The
          Board
          is authorized to appoint a committee to administer the Plan. If a committee
          is
          appointed, all references in this Agreement to the “Board” shall be deemed to
          refer to the committee.

         

        NOW,
          THEREFORE, the parties to this Agreement, intending to be legally bound
          hereby,
          agree as follows:

         

        1.  Grant
          of Option.
          Subject
          to the terms and conditions set forth in this Agreement and in the Plan,
          the
          Company hereby grants to the Grantee a nonqualified stock option (the “Option”)
          to purchase __________ (_____) shares of common stock of the Company (“Shares”)
          at an exercise price of ___________ ($___) per Share. The Option shall
          become
          exercisable according to Paragraph 2 below. 

         

        2.  Exercisability
          of Option.
          The
          Option shall become exercisable on the following dates, if the Grantee
          is
          employed by, or providing service to, the Employer (as defined in the Plan)
          on
          the applicable date:

         

        Date    Shares
          for Which the Option is Exercisable

         

        ____________,
          2008    

        ____________,
          2009    

        ____________,
          2010    

        

        

        The
          exercisability of the Option is cumulative, but shall not exceed 100% of
          the
          Shares subject to the Option. If the foregoing schedule would produce fractional
          Shares, the number of Shares for which the Option becomes exercisable shall
          be
          rounded down to the nearest whole Share.

         

        

         

        3.  Term
          of Option.

         

        (a)  The
          Option shall have a term of ten years from the Date of Grant and shall
          terminate
          at the expiration of that period, unless it is terminated at an earlier
          date
          pursuant to the provisions of this Agreement or the Plan.

         

        (b)  The
          Option shall automatically terminate upon the happening of the first of
          the
          following events:

         

        (i)  The
          expiration of the 90-day period after the Grantee ceases to be employed
          by, or
          provide service to, the Employer, if the termination is for any reason
          other
          than Disability (as defined in the Plan), death or Cause (as defined in
          the
          Plan).

         

        (ii)  The
          expiration of the one-year period after the Grantee ceases to be employed
          by, or
          provide service to, the Employer on account of the Grantee’s
          Disability.

         

        (iii)  The
          expiration of the one-year period after the Grantee ceases to be employed
          by, or
          provide service to, the Employer, if the Grantee dies while employed by,
          or
          providing service to, the Employer or within 90 days after the Grantee
          ceases to
          be so employed or provide such services on account of a termination described
          in
          subparagraph (i) above.

         

        (iv)  The
          date
          on which the Grantee ceases to be employed by, or provide service to, the
          Employer for Cause. In addition, notwithstanding the prior provisions of
          this
          Paragraph 3, if the Grantee engages in conduct that constitutes Cause after
          the
          Grantee’s employment or service terminates, the Option shall immediately
          terminate.

         

        Notwithstanding
          the foregoing, in no event may the Option be exercised after the date that
          is
          immediately before the tenth anniversary of the Date of Grant. Any portion
          of
          the Option that is not exercisable at the time the Grantee ceases to be
          employed
          by, or provide service to, the Employer shall immediately
          terminate.

        

        4.  Exercise
          Procedures.
          

         

        (a)  Subject
          to the provisions of Paragraphs 2 and 3 above, the Grantee may exercise
          part or
          all of the exercisable Option by giving the Company written notice of intent
          to
          exercise in the manner provided in this Agreement, specifying the number
          of
          Shares as to which the Option is to be exercised and the method of payment.
          Payment of the exercise price shall be made in accordance with procedures
          established by the Board from time to time based on type of payment being
          made
          but, in any event, prior to issuance of the Shares. The Grantee shall pay
          the
          exercise price (i) in cash, (ii) with the approval of the Board, by delivering
          Shares of the Company, which shall be valued at their fair market value
          on the
          date of delivery, or by attestation (on a form prescribed by the Board)
          to
          ownership of Shares having a fair market value on the date of exercise
          equal to
          the exercise price, (iii) after a public offering of the Company’s stock, by
          payment through a broker in accordance with procedures permitted by Regulation
          T
          of the Federal Reserve Board or (iv) by such other method as the Board
          may
          approve. The Board may impose from time to time such limitations as it
          deems
          appropriate on the use of Shares of the Company to exercise the Option.
          

         

        (b)  The
          obligation of the Company to deliver Shares upon exercise of the Option
          shall be
          subject to all applicable laws, rules, and regulations and such approvals
          by
          governmental agencies as may be deemed appropriate by the Board, including
          such
          actions as Company counsel shall deem necessary or appropriate to comply
          with
          relevant securities laws and regulations. The Company may require that
          the
          Grantee (or other person exercising the Option after the Grantee’s death)
          represent that the Grantee is purchasing Shares for the Grantee’s own account
          and not with a view to or for sale in connection with any distribution
          of the
          Shares, or such other representation as the Board deems appropriate.

         

        (c)  All
          obligations of the Company under this Agreement shall be subject to the
          rights
          of the Company as set forth in the Plan to withhold amounts required to
          be
          withheld for any taxes, if applicable. Subject to Board approval, the Grantee
          may elect to satisfy any tax withholding obligation of the Employer with
          respect
          to the Option by having Shares withheld up to an amount that does not exceed
          the
          minimum applicable withholding tax rate for federal (including FICA), state
          and
          local tax liabilities.

         

        5.  Change
          of Control.
          The
          provisions of the Plan applicable to a Change of Control shall apply to
          the
          Option and, in the event of a Change of Control, the Board may take such
          actions
          as it deems appropriate pursuant to the Plan.

         

        6.  Right
          of First Refusal; Repurchase Right; Shareholder’s Agreement.
          As a
          condition of receiving this Option, the Grantee hereby agrees that all
          Shares
          issued under the Plan shall be subject to a right of first refusal and
          repurchase right as described in the Plan, and the Board may require that
          the
          Grantee (or other person exercising the Option) execute a shareholder’s
          agreement, in such form as the Board determines, with respect to all Shares
          issued upon the exercise of the Option before a public offering of the
          Company’s
          stock. 

         

        7.  Restrictions
          on Exercise.
          Except
          as the Board may otherwise permit pursuant to the Plan, only the Grantee
          may
          exercise the Option during the Grantee’s lifetime and, after the Grantee’s
          death, the Option shall be exercisable (subject to the limitations specified
          in
          the Plan) solely by the legal representatives of the Grantee, or by the
          person
          who acquires the right to exercise the Option by will or by the laws of
          descent
          and distribution, to the extent that the Option is exercisable pursuant
          to this
          Agreement.

         

        8.  Grant
          Subject to Plan Provisions.
          This
          grant is made pursuant to the Plan, the terms of which are incorporated
          herein
          by reference, and in all respects shall be interpreted in accordance with
          the
          Plan. The grant and exercise of the Option are subject to interpretations,
          regulations and determinations concerning the Plan established from time
          to time
          by the Board in accordance with the provisions of the Plan, including,
          but not
          limited to, provisions pertaining to (i) rights and obligations with respect
          to
          withholding taxes, (ii) the registration, qualification or listing of the
          Shares, (iii) changes in capitalization of the Company and (iv) other
          requirements of applicable law. The Board shall have the authority to interpret
          and construe the Option pursuant to the terms of the Plan, and its decisions
          shall be conclusive as to any questions arising hereunder.

         

        9.  No
          Employment or Other Rights.
          The
          grant of the Option shall not confer upon the Grantee any right to be retained
          by or in the employ or service of the Employer and shall not interfere
          in any
          way with the right of the Employer to terminate the Grantee’s employment or
          service at any time. The right of the Employer to terminate at will the
          Grantee’s employment or service at any time for any reason is specifically
          reserved.

         

        10.  No
          Shareholder Rights.
          Neither
          the Grantee, nor any person entitled to exercise the Grantee’s rights in the
          event of the Grantee’s death, shall have any of the rights and privileges of a
          shareholder with respect to the Shares subject to the Option, until certificates
          for Shares have been issued upon the exercise of the Option.

         

        11.  Assignment
          and Transfers.
          Except
          as the Board may otherwise permit pursuant to the Plan, the rights and
          interests
          of the Grantee under this Agreement may not be sold, assigned, encumbered
          or
          otherwise transferred except, in the event of the death of the Grantee,
          by will
          or by the laws of descent and distribution. In the event of any attempt
          by the
          Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose
          of the
          Option or any right hereunder, except as provided for in this Agreement,
          or in
          the event of the levy or any attachment, execution or similar process upon
          the
          rights or interests hereby conferred, the Company may terminate the Option
          by
          notice to the Grantee, and the Option and all rights hereunder shall thereupon
          become null and void. The rights and protections of the Company hereunder
          shall
          extend to any successors or assigns of the Company and to the Company’s parents,
          subsidiaries, and affiliates. This Agreement may be assigned by the Company
          without the Grantee’s consent.

         

        12.  Applicable
          Law.
          The
          validity, construction, interpretation and effect of this instrument shall
          be
          governed by and construed in accordance with the laws of the State of Nevada,
          without giving effect to the conflicts of laws provisions thereof.

         

        13.  Notice.
          Any
          notice to the Company provided for in this instrument shall be addressed
          to the
          Company in care of the President at Vemics, Inc., at the Company’s headquarters
          and any notice to the Grantee shall be addressed to such Grantee at the
          current
          address shown on the payroll of the Employer, or to such other address
          as the
          Grantee may designate to the Employer in writing. Any notice shall be delivered
          by hand, sent by telecopy or enclosed in a properly sealed envelope addressed
          as
          stated above, registered and deposited, postage prepaid, in a post office
          regularly maintained by the United States Postal Service.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the Company has caused its duly authorized officers to
          execute
          and attest this Agreement, and the Grantee has executed this Agreement,
          effective as of the Date of Grant.

        

        VEMICS,
          INC.

        Attest:

        

        

        By:      

         

        

        

        I
          hereby
          accept the Option described in this Agreement, and I agree to be bound
          by the
          terms of the Plan and this Agreement. I hereby further agree that all the
          decisions and determinations of the Board shall be final and
          binding.

        

        Grantee:
                

        Name:
          

        

        Date:Unassociated Document

     

    
Exhibit
      10.5

     

     

    

      EMPLOYMENT
        AGREEMENT

      

      

      This
        Employment Agreement (this "Agreement"), is entered into on October 1, 2004,
        between VEMICS, Inc. ("VEMICS") and Fred Zolla ("Employee").

      

      In
        consideration of the mutual covenants contained herein, and for other good
        and
        valuable consideration, the receipt and sufficiency of which are hereby
        acknowledged, the parties hereto agree as follows:

      

      1.  Employment;
        Duties.

      

      VEMICS
        hereby employs Employee as the Chief Executive Officer and Chairman of the
        Board
        of Directors of VEMICS. The employee shall function with full authority to
        establish policy, set corporate direction and manage VEMICS's strategic
        direction, investor relations, vendor relations, strategic alliances, operations
        and strategic planning. Employee agrees to perform and discharge such duties
        and
        responsibilities as are prescribed from time-to-time by the VEMICS Board
        of
        Directors and as are appropriate for video conference/distance learning
        executives of corporations with the financial, personnel and other resources
        that are similar to that of VEMICS. The Employee shall devote all of his
        business time, attention, and energy to the Company and shall not, during
        the
        term of his employment, be actively engaged in any managerial or employment
        capacity in any other business activity for gain, profit, or other pecuniary
        advantage; provided that the foregoing does not prohibit the Employee from
        making investments that do not unreasonably interfere with the performance
        of
        his duties with the Company.

      

      2.  Compensation
        and Withholding.

      

      For
        his
        services pursuant to this Agreement, VEMICS will pay Employee an interim
        salary
        at the annual rate of $86,400. VEMICS will pay the Salary semimonthly (as
        calculated by dividing the gross salary by 26 equal payments) and may withhold
        from the Salary, the Benefits and any other compensation provided to Employee
        hereunder, all Federal, state and local income, employment and other taxes,
        as
        and in such amounts as may be required to be withheld under applicable
        law.

      

      Employee's
        salary will immediately be increased to $155,000 ("Salary") for the first
        year
        either upon improved financial condition or full funding or of the VEMICS
        business plan (minimum of $3,000,000 in equity or debt financing or sales).
        Partial funding will result in proportionate salary increases to be determined
        by the compensation committee or through approval of the "Use of Proceeds"
        report submitted to investors.

      

      In
        the
        second year of this contract, following either improved financial condition
        or
        full funding of the business plan, Employee's salary shall be increased to
        $190,000 annually. The Salary may be increased and cash or stock bonuses
        may be
        awarded from time-to-time to Employee as the Board determines at its sole
        discretion. .

      

      3.  Employment
        Term.

      

      The
        term
        of this Agreement will commence on the date of this agreement or Employee's
        first date of employment, whichever is later, and, unless sooner terminated
        as
        provided in Section 5, will end on December 31, 2007.

      

      4.  Benefits
        and Incentive Payments.

      

      4.1 VEMICS
        will approve the grant to Employee of an option to purchase shares of

      the
        Company's common stock, in accordance with the terms of the Company's stock
        option plan, as the same
        may
        be amended from time to time, and a nonqualified stock option agreement to
        be
        entered into
        by the
        Employee and the Company. This option expires when Employee's employment
        terminates for cause or without cause or when Employee resigns, or upon
        Employee's death.

      

      4.2
         Employee
        will be entitled to a noncumulative paid vacation of three (3) weeks,

      plus
        the
        week between Christmas and New
        Year's
        Day for each full year of the term hereof, each of which weeks may be taken
        separately or together, and sick days in accordance with VEMICS's policy,
        during
        which Employee will be entitled to the full compensation and Benefits (as
        defined in Section 4.3) otherwise payable hereunder; provided, however, any
        allotted vacation time which has not been used in any particular year of
        the
        term hereof shall not be carried over to the next ensuing year without the
        express written consent of the Employer.

      

      4.3
         Employee
        may participate, on the same basis and subject to the same 

      qualifications
        as other personnel of VEMICS, or as offered to key executives of the company,
        in
        any pension, profit sharing, life insurance, health insurance, hospitalization,
        dental, drug prescription, short and long term disability,
        accidental death or dismemberment and other benefit plans and policies VEMICS
        provides with
        respect
        to its personnel generally (collectively, the "Benefits"). In addition, VEMICS
        shall provide a workman's compensation and disability coverage equal to full
        salary in the event that the employee becomes permanently disabled while
        employed at VEMICS while engaged in performing his duties, or not,
        during work time or on personal time. In the event that the company shall
        fail
        to provide this coverage
        and
        employee becomes disabled VEMICS shall fulfill its obligation from corporate
        funds for the rest of employees life or for an equal duration that would
        be
        covered by an executive level similar insurance policy intended to provide
        an
        income for the employee and/or his family if employee becomes disabled and
        can
        not perform his regular duties.

      

      4.4  VEMICS
        will pay or promptly reimburse Employee, in accordance with 

      VEMICS's
        normal policies and procedures for its personnel, for all allowances and
        expenses provided for hereunder and for all reasonable out-of-pocket business,
        entertainment and travel expenses incurred by Employee in the performance
        of his
        duties hereunder. Upon full funding or sufficiently improved financial
        condition, VEMICS will provide employee with a monthly auto allowance of
        $800
        which will cover all direct auto expense of auto payments (if any) gas, oil,
        and
        insurance.

      

      	4.5  	
              A
                guaranteed minimum year end bonus of $25,000 will also be paid to
                

            

      employee
        on or before December 15' of each year following the first full year of funding,
        providing the cash flow of the company warrants such payments. In the event
        that
        a cash payment can not be executed due to the cash flow situation at the
        time,
        as determined by the compensation committee, bonus money can accrue or be
        taken
        in stock options at the current best rate available.

      

      5. Termination
        of Employment and Severance Benefits.

      

      5.1
         Termination
        by VEMICS of Employee with cause.
        VEMICS
        Board of 

      Directors
        may terminate Employee's employment with VEMICS, with Cause. Termination
        with
        Cause shall be effective immediately. For purposes of this section "Cause"
        shall
        be
        defined as: (i)
        gross
        misfeasance, gross malfeasance or gross nonfeasance by the Employee with
        respect
        to his
        duties
        hereunder; (ii) conviction
        of the
        Employee of a criminal
        offense,
        other than a traffic
        offense;
        or (iii)
        performance by the Employee of any act of moral turpitude,
        fraud or
        gross dishonesty, with respect
        to the performance
        by the
        Employee
        of
        his
        duties hereunder.
        Employee terminated by VEMICS for cause, as defined herein, shall only be
        entitled to receive, except as otherwise required by law, salary, benefits
        and
        reimbursements (provided for in Section 4.3), that accrued
        prior to the effective date of the termination. In addition, VEMICS shall
        pay
        salary and benefits
        of
        employee for an additional one hundred eighty (180) days from the effective
        date
        of termination herein. Nothing in this Section shall create any implication
        that
        VEMICS is waiving any remedy VEMICS
        may have for breach by the Employee of this Agreement. The amount of salary
        and
        benefits shall
        be
        the same as existed at the time of termination by Company. The Company shall
        be
        required to
        give
        employee thirty (30) days written notice prior to termination with cause
        as
        defined herein.

      

      	5.2  	
              Termination
                be VEMICS of Employee without cause;
                If
                VEMICS's Board 

            

      or
        its
        designee terminates Employee's employment hereunder for any reason other
        than
        Cause as defined under section 5.1, or Employee's death or Permanent Disability
        (as defined in Section 5.5), then (a) the Employee
        shall be entitled to receive (i) the salary and benefits accrued prior to
        the
        Termination Date, and
        (ii)
        payment or reimbursement of any expenses, provided for under Section 4.3,
        that
        were incurred
        by
        Employee prior to the Termination Date, and (b) after the Termination Date.
        VEMICS will also continue to pay the full salary and benefits (salary to
        be paid
        in equal semimonthly payments) to Employee
        for a period of time of eighteen (18) months from the date employment is
        terminated by the Board
        of
        Directors without cause. The amount of salary and benefits shall be the same
        as
        existed at the time
        of
        termination by Company. The Company shall be required to give employee ninety
        (90) days
        written
        notice prior to termination without cause.

      

      5.3  Employee's
        Resignation from VEMICS without Cause. If
        Employee 

      voluntarily
        resigns his
        employment with VEMICS, without Cause, then employee shall be entitled to
        salary, benefits and reimbursements
        (provided for in Section 4.3), that accrued prior to the effective date of
        the
        termination.  In
        addition, VEMICS shall pay employee
        salary and benefits for an additional thirty (30) days from the
        effective date of termination. The amount of salary and benefits shall be
        the
        same as existed at the time of termination by Employee. The Employee shall
        be
        required to give VEMICS sixty (60) days written notice prior to termination
        without cause.

      

      	5.3  	
              Employees
                Resignation from VEMICS with Cause. If
                Employee resigns 

            

      from
        VEMICS with
        Cause,
        as defined herein, then (a) Employee shall be entitled to receive (i) the
        salary
        and benefits accrued
        prior to the termination Date and (ii) payment or reimbursement of any expenses,
        provided for
        under
        Section 4.3, that were incurred by Employee prior to the termination date
        and
        (b) after the termination date. The amount of salary and benefits shall be
        the
        same as existed at the time of termination
        by Employee. VEMICS will also continue to pay the full salary and benefits
        of
        Employee
        (salary
        to paid in equal semimonthly payments) to Employee for a period of time of
        eighteen (18) months from the date Employee resigns from VEMICS with Cause.
        For
        purposes of this section "Cause"
        shall be defined as (i) a breach by VEMICS of any of its material agreements
        contained herein
        and the
        continuation of such breach for ten business days after written notice thereof
        is given to VEMICS
        (ii) The creation of a hostile work environment such that employee is unable
        to
        perform his responsibilities
        and duties as set forth under this agreement as well as the continuation
        of a
        hostile work
        environment for ten business days after written notice thereof is given to
        VEMICS. The Employee
        shall be
        required to give VEMICS thirty (30) days written notice prior to termination
        with cause as defined herein.

      

      5.5
         Compensation
        Upon Death or Permanent Disability.
        If
        Employee dies or 

      suffers
        a
        Permanent Disability, then VEMICS will () pay Employee or his estate,
six
        months
        Salary and bonus as described in section 5.2, according to the regular payroll
        and (ii) continue for Employee's spouse and dependent children (if Employee
        has
        died) and for Employee and his spouse and dependent children
        (if Employee suffers a Permanent Disability), all of the Benefits that Employee
        was receiving at
        the time
        of his death or Permanent Disability, for 18 months after Employee's death
        or
        permanent disability. This clause is in addition to the disability key man
        insurance policy clause in section 4.2. "Permanent Disability' means the
        inability of Employee to perform his duties hereunder as a result of
any
        physical or mental incapacity for 60 consecutive days or 90 days during any
        twelve month period,
        as
        determined by the Board. The amount of Salary and Benefits shall be the same
        as
        existed at the time of termination by Company.

      

      6.
         Covenant
        Regarding Confidentiality.

      

      6.1.
         Employee
        acknowledges that he will have access to, and knowledge of, 

      VEMICS
        Confidential Information, and that improper use or disclosure of VEMICS
        Confidential Information by Employee,
        whether during or after the termination of his employment by VEMICS, could
        cause
        serious
        injury
        to the business of VEMICS. Accordingly, Employee agrees that he will forever
        keep secret and inviolate
        all VEMICS Confidential Information which has or shall come into his possession,
        and that he will
        not
        use the same for his own private benefit or directly or indirectly for the
        benefit of others, and that
        he will
        not discuss VEMICS Confidential Information with any other person or
        organization, all for so long as VEMICS Confidential Information is not
        generally known by, or accessible to, the public.

      

      	6.2  	
              Definition
                of Confidential Information:
                'VEMICS Confidential Information" 

            

      as
        used
        in this Agreement shall mean any and all technical and non-technical information
        including patent, copyright, trade secret, and proprietary information,
        techniques, sketches, drawings, models, inventions, know-how, processes,
        apparatus, equipment, algorithms, software programs, software source documents,
        and formulae related to the current, future, and proposed products and services
        of VEMICS, and includes,
        without limitation, VEMICS information concerning research, experimental
        work,
        development, design
        details and specifications, engineering, financial information, procurement
        requirements, purchasing,
        manufacturing, customer lists, business forecasts, sales and merchandising,
        and
        marketing
        plans
        and information. "Confidential Information" shall also include proprietary
        or
        confidential information of any third party that may disclose such information
        to employee in the course of their employment to VEMICS.

      

      	6.3  	
              The
                Employee further agrees that he will, immediately after termination
                of his
                

            

      employment
        with the Company, and in no event later than 24 hours after termination,
        return
        to the Company all books, records, customer and pricing lists, correspondences,
        contracts or orders, advertising or promotion
        material, and other written, typed or printed materials, whether furnished
        by
        the Company or prepared
        by the Employee, which contain any information relating to the Company's
        business, and the
        Employee
        agrees that he will neither make nor retain any copies of such
        materials.

      

      6.4
         Nondisclosure
        and Nonuse obligation:
        Employee
        hereby agrees that he will not 

      make
        use
        of, disseminate, or in any way disclose any Confidential Information of the
        VEMICS to any other party to
        any
        person, firm, or business, except to the extent necessary for the performance
        of
        his duties as an
        employee
        of VEMICS and any other purpose that VEMICS may hereafter authorize in writing.
        Employee hereby agrees that it shall treat all Confidential Information of
        the
        VEMICS with due care to protect its Confidentiality.

      

      	6.4  	
              Exclusions
                from Nondisclosure and Nonuse obligations:
                VEMICS and 

            

      Employee's
        obligations under this section with respect to any portion of the VEMICS
        Confidential Information shall terminate under this section when Employee
        can
        document that:

      

      i.  It
        was in
        the public domain at or subsequent to the time it was 

      communicated
        to Employee by VEMICS through no fault of Employee;

      ii.  It
        was
        rightfully in Employee's possession free of any obligation of 

      confidence
        at or subsequent to the time it was communicated to Employee by VEMICS;
        or

      

      A
        disclosure of Confidential Information:

      

      a)  
        in
        response to a valid order by a court or other governmental body;

      

      b)  
        otherwise required by law, or necessary to establish the rights of either
        

      party
        under this Agreement, shall not be considered to be a breach of this Agreement
        or a waiver of confidentiality for other purposes; provided, however, that
        Recipient shall provide prompt written notice thereof to enable Discloser
        to
        seek a protective order or otherwise prevent such disclosure.

      

      	6.5  	
              Enforceability
                of this Confidentiality Provision:
                A
                breath of any of the 

            

      promises
        contained in this section will result in irreparable and continuing damage
        to
        VEMICS for which there will be no adequate remedy at law, Employee agrees
        that
        VEMICS shall be entitled to injunctive relief and/or a decree for specific
        performance, and such other relief as
        may
        Court
        may deem proper and just. (including monetary damages if
        appropriate).

      

      7.  Arbitration.

      

      Any
        dispute or controversy arising under or in connection with this Agreement
        or in
        any manner associated with Employee's employment shall be settled exclusively
        by
        arbitration in New York, in accordance with the Rules of the American
        Arbitration Association then in effect, except for the terms under Section
        6.6.
        The parties agree to execute and be bound by the mutual agreement to arbitrate
        claims relating to Employee's employment, attached hereto as Attachment
        A.

      

      8.  General.

      

      8.1
         This
        Agreement will be construed, interpreted and governed by the laws of the
        

      State
        of
        New York, without regard to the conflicts of law rules thereof.

      

      	8.2  	
              The
                provisions set forth in Sections 6 ,7 and 8 of this employment agreement
                

            

      shall
        remain in full force and effect even in the event this agreement is terminated,
        for whatever reason, by Employee or VEMICS. All reference to VEMICS in Sections
        6 ,7 and 8 include VEMICS's subsidiaries and other affiliates, if
        any.

      

      8.3
         This
        Agreement will extend to and be binding upon Employee, his legal 

      representatives,
        heirs
        and
        distributees, and upon VEMICS, its successors and assigns regardless of any
        change in the business
        structure of VEMICS, be it through spin-offs merger, sale of stock, sale
        of
        assets or any other transaction.
        However, this Agreement is a personal services contract and, as such, Employee
        may not
        assign
        any of his duties or obligations hereunder.

      

      8.4
         In
        the
        event that VEMICS shall be sold or the current organizational structure

      is
        altered or changed by a change in ownership then the stock vesting shall
        be
        accelerated to the end of the current employment year plus twelve months
        and be
        transferred to the employee's estate.

      

      8.5
         In
        the
        event of a future disposition of the properties and businesses of the

      Company
        by merger,
        acquisition, consolidation, sale of assets or otherwise, then the Company
        may
        elect to assign
        this
        Agreement and all of its rights and obligations hereunder to the acquiring
        or
        surviving person or entity;
        provided that such corporation, person
        or
        entity shall assume in-writing all of the obligations of
        the
        Company hereunder; or in addition to the Company's other rights of termination,
        to terminate this Agreement upon at least five days' written notice by paying
        Employee the compensation owed him in accordance with Section 5.3 (Termination
        Without Cause) of this Agreement.

      

         8.6
         This
        Agreement constitutes the entire agreement of the parties with respect to
        the
subject
        matter hereof. No waiver, modification or change of any of the provisions
        of
        this Agreement will be
        valid
        unless in writing and signed by both parties. Any and all prior agreements
        between the parties
        written
        or oral relating to Employee's employment by VEMICS are of no further force
        or
        effect.

      

      8.7
         The
        waiver of any breach of any duty, term or condition of this Agreement

      shall
        not
        be deemed to constitute a waiver of any preceding or succeeding breach of
        the
        same or any other duty, term
        or
        condition of this Agreement. No waiver of any provision of this Agreement
        shall
        be valid unless in
        writing and signed by both the Employee and an authorized officer of the
        Company. If any provision
        of this
        Agreement is unenforceable in any jurisdiction in accordance with its terms,
        the
        provision shall be
        enforceable to the fullest extent permitted in that jurisdiction and shall
        continue to be enforceable in
        accordance with its terms in any other jurisdiction.

      

      8.8
         All
        notices pursuant to this Agreement shall be in writing and delivered

      personally
        receipt acknowledged
        (which shall include Federal Express, Express Mail or similar service) or
        sent
        by certified mail,
        return receipt requested, addressed to the parties hereto and shall be deemed
        given upon receipt, if
        delivered personally, and three days after mailing, if mailed, unless received
        earlier. Notices shall be addressed
        and sent to VEMICS at its principal executive office and to executive at
        this
        home address
        as it
        appears in VEMICS's personnel records.

      

      8.9
         The
        parties agree that, in the event of any breach or violation of this

      Agreement,
        such breach of violation will result in immediate and irreparable injury
        and
        harm to,
        the
        innocent party, who shall be entitled to the remedies of injunction and specific
        performance or either of such remedies, if available, as well as all other
        legal
        or equitable remedies, if available, plus reasonable attorneys fees and costs
        incurred in obtaining any such relief.

      

      8.9A
         The
        Section headings contained in this Agreement are for convenience of

      reference
        only and shall not be used in construing this Agreement.

      

      8.9B
         This
        Agreement may be executed in counterparts, each of which will be 

      deemed
        an
        original but all of which will together constitute one and the same agreement.
        

      

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

      

      VEMICS,
        Inc.

      

      

      

      By:___________________________

      Fred
        Zolla

      

      Title: Chairman/CEO

      

      

      

      

      

      

      

      

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