Document:

EXHIBIT 10.1

 

Exhibit 10.1

INTERIM CHIEF EXECUTIVE OFFICER

EMPLOYMENT AGREEMENT

This EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) made as of January 27, 2014 (the “Effective Date”), by and between Amerilithium Corp., a Nevada corporation, with offices at 871 Coronado Center Dr., Suite 200, Henderson, NV 89052 (hereinafter called the “Company”), and Ernest B. Remo, with an address at PO Box 2568, Del Mar, CA 92014 (hereinafter called the “Executive”).

W I T N E S S E T H: 

WHEREAS, Matthew Worrall is resigning as Chief Executive Officer, President, director and any and all other positions to which he may have been previously or at any time appointed, regardless of whether or not he served in such capacity, of the Company and in anticipation thereof, the Company wishes to employ the Executive as its Interim Chief Executive Officer and director until such time as the Company can find a permanent Chief Executive Officer to replace Mr. Worrall;

WHEREAS, the Company desires to employ the Executive to perform services for the Company as its Interim Chief Executive Officer, and the Executive desires to perform such services for the Company as its Interim Chief Executive Officer, on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.

EMPLOYMENT

The Company agrees to employ the Executive, and the Executive agrees to serve the Company in an executive capacity upon the terms and conditions hereinafter set forth.

 

2.

TERM 

The term of this Agreement shall be until the earlier of six months or until such time as the Company finds a permanent Chief Executive Officer, beginning on the Effective Date (the “Term”). 

 

 

3.

COMPENSATION

(a)  Base Salary. Subject to the Company completing a qualified financing (as defined below) during the Term hereof, the Company agrees to pay the Executive during the Term hereof a salary at the rate of five thousand dollars ($5,000) per month with a maximum aggregate salary of twenty thousand dollars ($20,000).  All salary, bonus, or other compensation payable to the Executive shall be subject to the customary withholding, FICA, medical and other tax and other employment taxes and deductions as required by federal, state and local law with respect to compensation paid by an employer to an employee. A Qualified Financing shall be deemed completed upon the funding of the Company of one hundred thousand dollars (US$100,000) through the issuance of either debt or equity securities of the Company.

4.

DUTIES

The Executive is hereby employed as Interim Chief Executive Officer of the Company and shall perform the following services in connection with the general business of the Company: 

(a)

Duties as Interim Chief Executive Officer. Executive shall have such duties, responsibilities and authority as are commensurate and consistent with the position of Interim Chief Executive Officer of a company and as may, from time to time, be assigned to him by the Board of Directors including but not limited to (i) exploring strategic business opportunities in different industries; (ii) improving the financial position of the Company; and (iii) evaluating and determining the direction of the current business . Executive shall report directly to the Board of Directors. The Executive will comply and be bound by the Company’s written operating policies, procedures and practices from time to time in effect during Executive’s employment.  Executive represents and warrants that he is free to enter into and fully perform this Agreement and the agreements referred to herein without breach of any agreement or contract to which he is a party or by which he is bound.  

(b)

Compliance.   The Executive hereby agrees to observe and comply with such reasonable rules and regulations of the Company as may be duly adopted from time to time by the Company's Board of Directors and otherwise to carry out and perform those orders, directions and policies stated to him from time to time by the Company's Board of Directors, either as specified in the minutes of the proceedings of the Board of Directors of the Company or otherwise in writing that are reasonably necessary and appropriate to carry out his duties hereunder. Such orders, directions and policies shall be legal and shall be consistent with the Executive's position as Interim Chief Executive Officer. 

5.

EXTENT OF SERVICES 

The Executive agrees to serve the Company faithfully and to the best of his ability and shall devote his full time, attention and energies to the business of the Company during customary business hours. The Executive agrees to carry out his duties in a competent and professional manner and to at all times promote the best interests of the Company. Nothing contained herein shall be construed as preventing the Executive from investing in any other 

 

business or entity which is not in competition with the business of the Company.  Nothing contained herein shall be construed as preventing the Executive from (1) engaging in personal business affairs and other personal matters, (2) serving on civic or charitable boards or committees, or (3) serving on the board of directors of companies that do not compete directly or indirectly with the Company, provided however, that none of such activities materially interferes with the performance of his duties under this Agreement and provided further that the Board of Directors approves of each such proposed appointment which approval shall not be unreasonably withheld.

6.

BENEFITS AND EXPENSES    

The parties agree and acknowledge that Mr. Remo will not participate in any of the Company’s employee benefit plans.  For example, Mr. Remo will not (a) be a participant in the Company’s Stock Incentive Plan, (b) will not be eligible for an incentive bonus, and (c) will not participate in the Company’s health benefit programs.

7.

TERMINATION; DISABILITY; RESIGNATION; TERMINATION WITHOUT CAUSE

(a)

Termination for Cause.  The Company shall have the right to terminate the Executive's employment hereunder:

(1)

For Cause upon such termination, Executive shall have no further duties or obligations under this Agreement (except as provided in Section 8) and the obligations of the Company to Executive shall be as set forth below.  For purposes of this Agreement, “Cause” shall mean:

(A)

Executive’s indictment or conviction of a felony or any crime involving moral turpitude under federal, state or local law;

(B)

Executive’s failure to perform (other than as a result of Executive's being Disabled), in any material respect, any of his duties or obligations under or in accordance with this Agreement for any reason whatsoever and the Executive fails to cure such failure within ten business days following receipt of notice from the Company;

(C)

Executive commits any dishonest, malicious or grossly negligent act which is materially detrimental to the business or reputation of the Company, or the Company’s business relationships, provided, however, that in such event the Company shall give the Executive written notice specifying in reasonable detail the reason for the termination;

(D)

Any intentional misapplication by Executive of the Company’s funds or other material assets, or any other act of dishonesty injurious to Employer committed by Executive; or

(E)

Executive’s use or possession of any controlled substance or 

 

chronic abuse of alcoholic beverages, which use or possession the Board of Directors reasonably determines renders Executive unfit to serve in his capacity as a senior executive of the Company.

In the event the Company terminates the Executive's employment for cause, then the Executive shall be entitled to receive, pro-rata through the date of such termination, his base salary as defined in Section 3(a) hereof.

(b)

Disability. The Company shall have the right to terminate the Executive's employment hereunder:

(1)

By reason of the Executive's becoming Disabled for an aggregate period of ninety (90) days in any consecutive three hundred sixty (360) day period (the “Disability Period”).

(A)

“Disabled” as used in this Agreement means that, by reason of physical or mental incapacity, Executive shall fail or be unable to substantially perform the essential duties of his employment with or without reasonable accommodation.

(B)

In the event Executive is Disabled, during the period of such disability he shall continue to receive his base compensation in the amount set forth in Section 3(a) hereof, which base compensation shall be reduced by the amount of all disability benefits he actually receives under any disability insurance program in place with the Company until the first to occur of (1) the cessation of the Disability or (2) the termination of this Agreement by the Company.  During the period of Disability and prior to termination, the Executive shall continue to receive the benefits provided in Section 6 hereof.

(C)

For the purposes of this Section 7(b), any amounts to be paid to Executive by the Company pursuant to subsection (B) above, shall not be reduced by any disability income insurance proceeds received by him under any disability insurance policies owned or paid for by the Executive.

(D)

If the Executive is terminated at the end of the Disability Period, then the Executive shall receive, through the date of termination, his base salary as defined in Section 3(a) hereof.

(c)

Death. The Company's employment of the Executive shall terminate upon his death and all payments and benefits shall cease upon such date provided, however, that under this Agreement the estate of such Executive shall be entitled to receive, through the date of termination, his base salary as defined in Section 3(a) hereof.  

(d)

Resignation. If the Executive voluntarily resigns during the Term of this Agreement, then all payments and benefits shall cease on the effective date of resignation, provided that under this Agreement the Executive shall be entitled to receive, through the date of such resignation, his base salary as defined in Section 3(a) hereof.

 

8.

CONFIDENTIALITY; RESTRICTIVE COVENANTS; NON COMPETITION

(a)

Non-Disclosure of Information.  

(1) 

The Executive recognizes and acknowledges that by virtue of his position as a key executive, he will have access to the lists of the Company's referral sources, suppliers, advertisers and customers, financial records and business procedures, sales force and personnel, programs, software, selling practices, plans, special methods and processes for electronic data processing, special techniques for testing commercial and sales materials and products, custom research services in product development, marketing strategy, product manufacturing techniques and formulas, and other unique business information and records (collectively “Proprietary Information”), as same may exist from time to time, and that they are valuable, special and unique assets of the Company's business. The Executive also may develop on behalf of the Company a personal acquaintance with the present and potential future clients and customers of the Company, and the Executive’s acquaintance may constitute the Company’s sole contact with such clients and customers. 

(2)

The Executive will not, without the prior written consent of the Company, during the Term of his employment or any time thereafter, except as may be required by competent legal authority or as required by the Company to be disclosed in the course of performing Executive’s duties under this Agreement, disclose trade secrets or other confidential information about the Company, including but not limited to Proprietary Information, to any person, firm, corporation, association or other entity for any reason or any purpose whatsoever or utilize such Proprietary Information for his own benefit or the benefit of any third party; .provided, however, that nothing contained herein shall prohibit the Executive from using his personal acquaintance with any clients or customers of the Company at any time in a manner that is not inconsistent with their remaining as clients or customers of the Company.

(3)

All equipment, records, files, memoranda, computer print-outs and data, reports, correspondence and the like, relating to the business of the Company which Executive shall use or prepare or come into contact with shall remain the sole property of the Company.  The Executive shall immediately turn over to the Company all such material in Executive's possession, custody or control at such time as this Agreement is terminated.  

(4)

“Proprietary Information” shall not include information that was a matter of public knowledge on the date of this Agreement or subsequently becomes public knowledge other than as a result of having been revealed, disclosed or disseminated by Executive, directly or indirectly, in violation of this Agreement.

(b)

Non-Solicitation.  The  Executive covenants and agrees that during the term of his employment, and for a two (2) year period immediately following the end of the Term of or earlier termination of this Agreement, regardless of the reason therefor, the Executive shall not solicit, induce, aid or suggest to: (1) any employee to leave such employ, (2) any contractor, consultant or other service provider to terminate such relationship, or (3) any customer, agency, 

 

vendor, or supplier of the Company to cease doing business with the Company.  

(c)

Non-Competition.  For purposes of this Section 8(c) the parties agree that the “business of the Company” shall be defined to include the development, manufacture, packaging, advertising, marketing, distribution and sale of turf or turf related products. 

The Executive covenants and agrees that during the Term, Executive shall not engage in any activity or render service in any capacity, directly or indirectly, (whether as principal, director, officer, investor, employee, consultant or otherwise) for or on behalf of any person or persons or entity in the United States or anywhere else in the world if such activity or service directly or indirectly involves or relates to any (1) business which is in competition with the business of the Company or (2) other business acquired or begun by the Company during the period of the Executive’s employment hereunder but in the latter event only if the Executive was directly involved in the operation of such other business. It is understood and agreed that nothing herein contained shall prevent the Executive from engaging in discussions concerning business arrangements to become effective upon the expiration of the term of this covenant not to compete.

(d)

Enforcement.  In view of the foregoing, the Executive acknowledges and agrees that it is reasonable and necessary for the protection of the good will, business, trade secrets, confidential information and Proprietary Information of the Company that he makes the covenants in this Section 8 and that the Company will suffer irreparable injury if the Executive engages in the conduct prohibited by Section 8 (a), (b) or (c) of this Agreement. The Executive agrees that upon a breach, threatened breach or violation by him of any of the foregoing provisions of this Section 8, the Company, in addition to all other remedies it may have including an action at law for damages, shall be entitled as a matter of right to injunctive relief, specific performance or any other form of equitable relief in any court of competent jurisdiction without being required to post bond or other security and without having to prove the inadequacy of the available remedies at law, to enjoin and restrain the Executive and each and every other person, partnership, association, corporation or organization acting in concert with the Executive, from the continuance of any action constituting such breach. The Company shall also be entitled to recover from the Executive all of its reasonable costs incurred in the enforcement of this Section 8 including its reasonable legal fees. The Executive acknowledges that the terms of Section 8(a), (b) and (c) are reasonable and enforceable and that, should there be a violation or attempted or threatened violation by the Executive of any of the provisions contained in these subsections, the Company shall be entitled to relief by way of injunction, specific performance or other form of equitable relief.  In the event that any of the foregoing covenants in Sections 8 (a), (b) or (c) shall be deemed by any court of competent jurisdiction, in any proceedings in which the Company shall be a party, to be unenforceable because of its duration, scope, or area, it shall be deemed to be and shall be amended to conform to the scope, period of time and geographical area which would permit it to be enforced.

(e) 

Independent Covenants.   The Company and the Executive agree that the covenants contained in this Section 8 shall each be construed as a separate agreement independent of any of the other terms and conditions of this Agreement, and the existence of any claim by the Executive against the Company, whether predicated on this Agreement or 

 

otherwise, shall not constitute a defense by the Executive to the Company’s enforcement of any of the covenants of this Section 8. 

9.

DISCLOSURE AND ASSIGNMENT OF RIGHTS.

(a) 

Disclosure.  The Executive agrees that he will promptly assign to the Company or its nominee(s) all right, title and interest of the Executive in and to any and all ideas, inventions, discoveries, secret processes, and methods and improvements, together with any and all patents or other forms of intellectual property protection that may be obtainable in connection therewith or that may be issued thereon, such as trademarks, service marks and copyrights, in the United States and in all foreign countries, which the Executive may invent, develop, or improve or cause to be invented developed or improved, on behalf of the Company while engaged in Company related decisions, during the Term or within six (6) months after the Term or earlier termination of this Agreement, which are or were related to the scope of the Company’s business or any work carried on by the Company or to any problems and projects specifically assigned to the Executive. All works and writings which relate to the Company’s business are works for hire under the Copyright Act, and any and all copyrights therefor shall be placed in the name of and inure to the benefit of the Company.

(b) 

Assignment of Interest.  The Executive agrees to disclose immediately to duly authorized representatives of the Company any ideas, inventions, discoveries, processes, methods and improvements covered by the terms of this Section 9 and to execute, at the Company’s expense, all documents reasonably required in connection with the Company’s application for appropriate protection and registration under the federal and foreign patent, trademark, and copyright law and the assignment thereof to the Company’s nominee (s). The Executive hereby appoints the Company’s Chairman as true and lawful attorney in fact with full powers of substitution and delegation to execute acknowledge and deliver any such instruments and assignments, which the Executive shall fail or refuse to execute or deliver.

10.

INDEMNIFICATION.

The Company shall indemnify the Executive to the maximum extent permitted under the Nevada Revised Statutes, or any successor thereto, and shall promptly advance any expenses incurred by the Executive prior to the final disposition of the proceeding to which such indemnity relates upon receipt from the Executive of a written undertaking to repay the amount so advanced if it shall be determined ultimately that the Executive is not entitled to indemnity under the standards set forth in the Nevada Revised Statutes or its successor.  The Employer shall use commercially reasonable efforts to obtain and maintain throughout the Term of the employment of the Executive hereunder directors’ and officers’ liability insurance for the benefit of the Executive.  The indemnification obligations of the Company under this Section 10 shall survive the termination of the Term or of this Agreement for any reason whatsoever unless the Agreement is terminated for cause.

11.

NOTICES.

(a)

Any and all notices or other communications given under this Agreement shall be 

 

in writing and shall be deemed to have been duly given on (1) the date of delivery, if delivered in person to the addressee, (2) the next business day if sent by overnight courier, or (3) three (3) days after mailing, if mailed within the continental United States, postage prepaid, by certified or registered mail, return receipt requested, to the party entitled to receive same, at his or its address set forth below.

The Company:

Amerilithium Corp.

871 Coronado Center Dr., Suite 200 Henderson, 

NV 89052 

If to the Executive:

Executive’s address specified above.

(b)

The parties may designate by notice to each other any new address for the purposes of this Agreement as provided in this Section 11.

12.

MISCELLANEOUS PROVISIONS

(a)

This agreement represents the entire Agreement between the parties and supersedes any prior agreement or understanding between them with respect to the subject matter hereof.  No provision hereof may be amended, modified, terminated, or revoked except by a writing signed by all parties hereto.

(b)

This Agreement shall be binding upon parties and their respective heirs, legal representatives, and successors.  The rights and interests of Company hereunder may be assigned to (1) a subsidiary or affiliate of the Company or (2) a successor business or successor business entity that is not a subsidiary or affiliate of the Company without the Executive's prior written consent; provided, however, that in either case the assignee continues the same business of the Company. The rights, interests and obligations of Executive are non-assignable.

(c)

No waiver of any breach or default hereunder shall be considered valid unless in writing and signed by the party against whom the waiver is asserted, and no such waiver shall be deemed the waiver of any subsequent breach or default of the same or similar nature.

(d)

If any provision of this Agreement shall be held invalid or unenforceable, such invalidity or unenforceability shall affect only such provision and shall not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement, and this Agreement shall be carried out as if any such invalid or unenforceable provision were not contained herein. 

(e)

The captions and headings contained in this Agreement are for convenience only and shall not be construed as a part of this Agreement.

(f)

Wherever it appears appropriate from the context, each term stated in this the 

 
 

singular or the plural shall include the singular and the plural.

(g)

The parties hereto agree that they will take such action and execute and deliver such documents as may be reasonably necessary to fulfill the terms of this Agreement.

(h)

The agreements and covenants set forth in Section 8 above shall survive termination or expiration of this Agreement.

(i)

The Executive represents and warrants that he is not subject to any prohibition or restriction, oral or written, preventing him from entering into this Agreement and undertaking his duties hereunder. 

(j)

The Executive acknowledges that he has consulted with counsel and been advised of his rights in connection with the negotiation, execution and delivery of this Agreement including in particular Section 8 of this Agreement.

13.

Governing Law.  The Agreement shall be construed in accordance with the laws of the State of New Jersey and any dispute under this Agreement will only be brought in the state and federal courts located in the State of New Jersey.

14.

Waiver of Jury Trail. THE EXECUTIVE HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON THIS AGREEMENT, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF OR BETWEEN ANY PARTY HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COMPANY ENTERING INTO THIS AGREEMENT. THE COMPANY’S REASONABLE RELIANCE UPON SUCH INDUCEMENT IS HEREBY ACKNOWLEDGED.

 

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

	
    	
    	
    	
    	
    	

	
         
	
         
	
         
	
        AMERILITHIUM CORP.

	
         
	
         
	
         
	
         
	
         
	
         

	
         
	
         
	
         
	
         
	
         
	
         

	
         
	
         
	
         
	
        By:
	
         /s/ Matthew Worrall
	
         

	
         
	
         
	
         
	
         
	
        Name: Matthew Worrall
	
         

	
         
	
         
	
         
	
         
	
        Title: Chief Executive Officer
	
         

	
    	
    	
    	
    	
    	

	
         
	
         
	
         
	
        EXECUTIVE

	
         
	
         
	
         
	
         
	
         
	
         

	
         
	
         
	
         
	
         
	
         
	
         

	
         
	
         
	
         
	
        /s/ Ernest B. Remo
	
         

	
         
	
         
	
         
	
        By: Ernest B. RemoEXHIBIT 10.2

 

Exhibit 10.2

CONSULTING AGREEMENT

This Consulting Agreement (the “Agreement”) is made as of this 27th day of January 2014 by and between Matthew Worrall, an individual with an address at Suite 231, Devonshire House, 49 Eldon Street, Sheffield, S1 4NR, United Kingdom (“Consultant”), and Amerilithium Corp., a Nevada corporation with an office at 871 Coronado Center Dr., Ste. 200, Henderson, NV 89052 (the “Company”).

WHEREAS, Consultant has substantial expertise that may be useful to the Company, which the Company desires to obtain; and

WHEREAS, the Company desires Consultant provide certain consulting services to the Company and Consultant is agreeable to performing such services for the Company.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter stated, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.

APPOINTMENT.

The Company hereby engages Consultant to provide, and Consultant hereby agrees to render, the Services (as defined herein) to the Company as a consultant upon the terms and conditions hereinafter set forth.

2.

TERM.

This Agreement will become effective on January 27, 2014 (the “Effective Date”) and will continue thereafter for a period of six (6) months.

3.

SERVICES.

During the Term of this Agreement, Consultant shall (i) assist the Company in exploring and identifying corporate acquisitions, divestitures and other strategies designed to accelerate growth; (ii) advise the Company to help structure the balance sheet; (iii) assist the Company in making all required periodic filings that are required by the Security and Exchange Commission including but not limited to Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K; and (iv) provide services as may be deemed appropriate by the Board of Directors from time to time.

4.

DUTIES OF THE COMPANY.

The Company shall provide Consultant, on a regular and timely basis, with all approved data and information about it, its subsidiaries, its management, its products and services and its operations as shall be reasonably requested by Consultant, and shall advise Consultant of any facts which would affect the accuracy of any data and information previously supplied pursuant to this Section.  The Company shall promptly supply Consultant with full and complete copies of all financial reports; all filings with all federal and state securities agencies; all data and 

 

information supplied by any financial analyst; and all brochures or other sales materials relating to the Company’s products or services.  

5.

COMPENSATION.

Upon the execution of this Agreement, the Company agrees to pay Consultant the following as consideration for the Services rendered:

 

(a)

Consultant shall be owed eight thousand five hundred dollars ($8,500) per month, beginning on the Effective Date and thereafter on the first day of each month for the duration of the Term, for an aggregate of fifty one thousand dollars $51,000 (the “Total Compensation”).  The Company will  pay  to the Consultant in cash or in stock, as determined by the Board in its sole discretion; however, the Total Compensation shall be accrued as of the Effective Date.

 

(b)

The Company shall register that certain amount of shares equivalent to the Total Compensation on an S-8 Registration Statement (the “S-8”), in accordance with applicable securities regulations.  For the duration of the Term, the Company shall maintain an effective S-8 and all stock-based compensation paid to Consultant shall be made under such S-8 (the “Compensation Shares”). All Compensation Shares paid during the Term shall be valued as of the date that payment is made at the amount of the cash in lieu of which such Compensation Shares are being issued (the “Share Value”). Furthermore, the Company agrees to pay any and all costs associated with Consultant’s deposit and sale of any stock based compensation received hereunder.

 

(c)  It is the intention of the Company and Consultant that by the earlier of the Termination Date (as defined below) or the end of the Term (the “Valuation Date”) the Consultant shall have generated net proceeds from the sale of the Compensation Shares equal to the aggregate Share Value.  The Consultant shall have the right to sell the Compensation Shares at any time in accordance with applicable securities laws.  At any time the Consultant may elect after the Valuation Date (or prior to such Valuation Date, if Consultant has sold all Compensation Shares prior to such Valuation Date), the Consultant may deliver to the Company a reconciliation statement showing the net proceeds actually received by the Consultant from the sale of the Compensation Shares (the “Sale Reconciliation”).  If, as of the date of the delivery by Consultant of the Sale Reconciliation, the Consultant has not realized net proceeds from the sale of such Compensation Shares equal to at least the Share Value, as shown on the Sale Reconciliation, then the Company shall immediately take all required action necessary or required in order to pay such additional cash or cause the issuance of such additional shares of common stock to the Consultant in an amount sufficient such that, when sold and the net proceeds thereof are added to the net proceeds from the sale of any of the previously issued and sold Compensation Shares, the Consultant shall have received total net funds equal to the Share Value.  If additional shares of common stock are issued pursuant to the immediately preceding sentence, and after the sale of such additional issued shares of common stock, the Consultant still has not received net proceeds equal to at least the Share Value, then the Company shall again be required to immediately take all required action necessary or required in order to cause the payment of such additional cash or the issuance of such additional shares of common stock to the Consultant as contemplated above, and such additional payment of cash or issuances of common stock shall continue until the Consultant has received net proceeds from the sale of such common stock equal to the Share Value.

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(d)  Termination of this Agreement may be effected by either party with thirty (30) day prior written notice to the other party (the “Termination Date”). Termination of this Agreement by the Company shall obligate the Company to pay any and all outstanding amounts of the Total Compensation on the Termination Date. 

6.

COSTS AND EXPENSES.

Consultant, in providing the Services, shall not be responsible for any reasonable out-of-pocket costs, including, without limitation, travel, lodging, telephone, postage and overnight delivery charges; provided that Consultant obtains approval of the Company for any amount exceeding $100, which approval shall not be unreasonably withheld, prior to incurring such expenses.  Consultant shall provide the Company with a detailed accounting of monthly expenses incurred pursuant to the terms of this Agreement.  Payment for these expenses shall be made to Consultant in accordance with the Company’s policy for reimbursements.

7.

INDEMNIFICATION.

(a)

The Company hereby agrees to indemnify, defend, and shall hold harmless Consultant, and defend any action brought against Consultant with respect to any claim, demand, cause of action, debt or liability, including reasonable attorneys' fees, to the extent that such action is based upon a claim that (i) is true and (ii) (A) would constitute a breach of any of the Company's representations, warranties, or agreements hereunder, (B) arises out of the negligence or willful misconduct of the Company, or (C) is based on any information provided by the Company’s content  that violates any rights of third parties, including, without limitation, rights of publicity, privacy, patents, copyrights, trademarks, trade secrets, and/or licenses. The Company agrees that it will not prosecute any action or proceeding against Consultant except where such claim is materially and substantially based on the gross negligence or willful misconduct of Consultant. 

(b)

Consultant hereby agrees to indemnify, defend, and shall hold harmless the Company, its affiliates and their respective directors, officers, employees, consultants, representatives and agents, and defend any action brought against same, with respect to any claim, demand, cause of action, or liability, including reasonable attorneys' fees, to the extent that such an action arises out of (i) the gross negligence or willful misconduct of Consultant or (ii) unlawful conduct.

(c)

In claiming indemnification hereunder, the indemnified party shall promptly provide the indemnifying party written notice of any claim that the indemnified party reasonably believes falls within the scope of the foregoing paragraphs.  The indemnified party may, at its expense, assist in the defense if it so chooses, provided that the indemnifying party shall control such defense, and all negotiations relative to the settlement of any such claim.  Any settlement intended to bind the indemnified party shall not be final without the indemnified party's written consent.

8.

INDEPENDENT CONTRACTOR STATUS AND OTHER BUSINESS OPPORTUNITIES.

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It is understood and agreed that Consultant will for all purposes hereof be deemed to be an independent contractor and will not, unless otherwise expressly authorized by the Company, have any authority to act for or represent the Company in any way, execute any transaction or document on behalf of the Company or otherwise be deemed an agent of the Company.  No federal, state or local withholding deductions will be withheld from any amounts owed by the Company to Consultant hereunder unless otherwise required by law.

Subject to Consultant’s obligations and duties, Consultant may, without limitation, (i) engage in the same or similar activities or lines of business as the Company or its subsidiaries or develop or market any products or services that compete, directly or indirectly, with those of the Company and its subsidiaries; provided that Consultant does not use in any manner any Confidential Information (as defined herein) of the Company in doing so, (ii) invest or own any interest publicly or privately in, or develop a business relationship with, any person engaged in the same or similar activities or lines of business as, or otherwise in competition with, the Company or its subsidiaries; provided that Consultant does not use in any manner any Confidential Information of the Company in doing so; or (iii) do business with any current or former client or customer of the Company or its subsidiaries; provided that such activity does not encourage or influence such client or customer to discontinue, reduce or decline any new business opportunity with the Company. Neither the Company nor any of its subsidiaries shall have any right by virtue of this Agreement in or to, or to be offered, any opportunity to participate or invest in, any venture engaged in by Consultant or any right by virtue of this Agreement in or to any income or profits derived therefrom.

9.

CONFIDENTIALITY.

Consultant acknowledges that in providing the Services hereunder, Consultant will be privy to Confidential Information of the Company and its subsidiaries.  As used in this Agreement, “Confidential Information” of the Company means all trade practices, business plans, price lists, supplier lists, customer lists, marketing plans, financial information, software and all other information or compilations thereof which relate to the business of the Company, or to any of its subsidiaries or affiliates, and which have not been disclosed by the Company to the public, or which are not otherwise generally available to the public.

Consultant acknowledges that the Confidential Information of the Company, as such may exist from time to time, are valuable, confidential, special and unique assets of the Company and its subsidiaries and affiliates, expensive to produce and maintain, and essential for the profitable operation of their respective businesses. Consultant agrees that, during the Term, or at any time thereafter, it shall not, and shall cause his employees, agents and representatives to not, directly or indirectly, communicate, disclose or divulge to any person or entity, or use for its benefit or the benefit of any person or entity, in any manner, any Confidential Information of the Company or its subsidiaries or affiliates acquired during the Term or any other confidential information concerning the conduct and details of the businesses of the Company and its subsidiaries and affiliates, except as required in the course of the performance of the Services hereunder or as otherwise may be required by law. 

The Company agrees that it will not disclose, and will not include in any public announcement, the name of Consultant, unless expressly agreed to by Consultant or unless and 

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until such disclosure is required by law or applicable regulation, and then only to the extent of such requirement.  

10.

MISCELLANEOUS.

(a)

Modification.  This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter hereof. This Agreement may be amended only in writing signed by both parties hereto.

(b)

Notices.  Any notice required or permitted to be given hereunder shall be in writing and shall be mailed or otherwise delivered in person at the address of such party set forth in the preamble thereof or to such other address or facsimile telephone number as the party shall have furnished in writing to the other party in accordance with the terms of this subparagraph (c).

 

(c)

Waiver.  Any waiver by either party hereto of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of that provision or of any breach of any other provision of this Agreement. The failure of a party hereto to insist upon strict adherence to any term of this Agreement on one or more occasions will not be considered a waiver or deprive that party of the right thereafter to insist upon adherence to such term of any other term of this Agreement.

(d)

Severability.  If any provision of this Agreement is invalid, illegal, or unenforceable, the balance of this Agreement shall remain in effect, and if any provision is inapplicable to any person, circumstance or jurisdiction, it shall nevertheless remain applicable to all other persons, circumstances and jurisdictions.

(e)

Disagreements.  Any dispute, disagreement, conflict of interpretation or claim arising out of or relating to this Agreement, or its enforcement, shall be governed by the laws of the State of New Jersey, without regard to its conflicts of law principles.  Consultant and the Company hereby irrevocably and unconditionally submit themselves and their property to the nonexclusive jurisdiction of the federal and state courts of the State of New Jersey and any appellate court thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may be heard and determined in New Jersey, or, to the extent permitted by law, in such federal court.  Each of the parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referenced.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.  Each party to this Agreement irrevocably consents to service of process in the manner provided for notices herein.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.  Each party hereto hereby waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby 

5

 

(whether based on contract, tort or any other theory).  If either party hereto shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses, including, but not limited to, court costs incurred with the investigation, preparation and prosecution of such action or proceeding. 

(f) 

Counterparts. Each party hereto may sign identical counterparts of this Agreement with the same effect as if both parties signed the same document.  A copy of this Agreement signed by one party hereto and delivered by facsimile or electronic transmission to the other party shall have the same effect as the delivery of an original of this Agreement containing the original signature of such party.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first above written.

AMERILITHIUM CORP.

CONSULTANT

/S/ Ernest Remo

/s/ Matthew Worrall

Name: Ernest Remo

Matthew Worrall

Title: Interim Chief Executive Officer

 

 

 

 

 

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