Document:

ex10-8.htm

     Exhibit
10.8 

     EMPLOYMENT
AGREEMENT 

    

    

     THIS
OFFICER'S EMPLOYMENT AGREEMENT ("Agreement") made this 10th day of March 2008,
by and between Vemics, Inc. ("Vemics"), a Delaware corporation having an address
523 Avalon Gardens, Nanuet, NY 10954, and Craig Stout ("Employee"), an adult
individual residing at 9 Lynne Drive, Chestnut Ridge, NY 10977. 

    

     Background 

    

     WHEREAS,
Vemics desires to enter into an employment agreement ("Agreement") with the
Employee pursuant to which Vemics shall employ the Employee as Vemics's Chief
Operating Officer; and 

    

     WHEREAS,
the Employee is willing and agrees to accept this employment on the terms and
conditions set forth in this Agreement. 

    

     NOW,
THEREFORE, in consideration of the premises and of the mutual covenants set
forth in this Agreement, Vemics and Employee, each intending to be legally
bound, agree as follows: 

    

     Section
1. Employment. Vemics employs the Employee, and the Employee accepts this
employment, on the terms and conditions set forth in this
Agreement. 

    

     Section
2. Duties of Employee. 

    

     (a)
The Employee will be employed as the Vemics’ Chief Operating Officer and shall
perform and discharge well and faithfully these duties as are usual and
customary for a Chief Operating Officer and will report to, and be subject to
the supervision of the Vemics’ Chief Executive Officer. In furtherance of the
foregoing, the Employee, as Chief Operating Officer, shall be responsible for
Managing the day to day operation of Vemics to include, but not be limited to
sales, operations, human resources, strategic alliances, channel development and
product development, enhancing and improving Vemics Proprietary business
relationships and Services . A detailed list of the Employee’s duties is listed
as Exhibit A to this agreement. The Employee will be located in Chestnut Ridge,
NY, or such other location as agreed to in writing by Employee (in Employee’s
sole discretion). The Employee will be furnished with facilities and services
commensurate with the Employee's position as Chief Operating Officer and
adequate for the performance of the duties under this
Agreement. 

    

     (b)
Except as set forth in Section 2(c) of this Agreement, the Employee shall devote
his full working time attention and energies to Vemics’ business and shall not,
during the Employment Period (as defined in this Agreement's Section 3), be
employed or involved in any other business activity, whether or not this
activity is pursued for gain, profit, or other pecuniary advantage, without
Vemics’ prior written consent. 

    

     (c)
Nothing set forth in this Section 2 shall be construed to prevent the Employee
from: 

    

     (i)
Investing the Employee's personal assets in businesses (“Employee Investment
Businesses”): 

    

     (1)
Which do not directly compete with the Vemics 

    

     (2)
Where the form or manner of these investments will not require meaningful
services on the part of the Employee in the operation of the affairs of the
business in which these investments are made1; 

    

     (ii)
Owning less than five percent (5%) of the aggregate securities of any class of
securities of any entity, regardless of the business activities conducted by
such entity; 

    

     (iii)
Acting as an officer, director, or member of management (as appropriate) of
Vemics, or as a member of the board of directors or board of trustees of any
other corporation, organization, or entity which is not a direct competitor of
the Company as of the date of Employee’s accession to such office, directorship,
trusteeship or management position (i.e., Employee shall not be in breach
hereof, or required to resign such position, if after Employee accepts it Vemics
undertakes an activity would cause such corporation, organization, or entity to
compete with Vemics); 

    

     Section
3. Term of Agreement. 

    

     (a)
Unless sooner terminated in accordance with Section 3(b), this Agreement shall
be for an initial term (the "Initial Term") of three (3) years, commencing on
April 1, 2008 and ending on March 31, 2011; provided, however, that if neither
Vemics nor the Employee notifies the other, in writing, of their intention not
to renew this Agreement at least sixty (60) calendar days prior to the
expiration of the Initial Term or any extension of the Initial Term, this
Agreement shall be automatically extended, and shall continue upon the same
terms and conditions as are contained in this Agreement and which are in force
and effect immediately prior to the end of the then current term of this
Agreement, for a period of one (1) year and so on from year to year thereafter
unless and until terminated by either the Vemics or the Employee by giving the
other party at least sixty (60) calendar days' written notice of termination
prior to the expiration of the then current term of this Agreement. The Initial
Term shall, together with any extensions of the Initial Term, be collectively
referred to in this Agreement as the "Employment Period." 

    

    
      
         

      

      
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     (b)
Notwithstanding the foregoing, this Agreement and the Employee's employment
shall terminate: 

    

     (i) At
any time for “Cause” as defined in this Agreement's Section 3(c) immediately
upon written notice to the Employee from the Board or the Board's designated
representative; In addition, and without limiting any of Employee's other rights
or remedies, Employee's obligations under Section 2 (1), (2) and Section 3 shall
automatically terminate. 

    

     (ii)
At any time, immediately upon giving the Employee notice of a determination by
the Board or the Board's designated representative that the Employee has been
incapacitated by accident, sickness, or otherwise so as to render the Employee
mentally or physically incapable of performing the services required of the
Employee under this Agreement for a period of ninety (90) consecutive calendar
days during any period of twelve (12) months, upon the expiration of this period
or at any time thereafter; or 

    

     (iii)
Immediately upon the Employee's death. 

    

     (c)
For purposes of this Agreement "Cause" shall mean any of the
following: 

    

     (i)
The Employee's conviction of or plea of guilty or nolo contendere to a felony,
a crime of falsehood, or a crime involving moral turpitude, or the actual
incarceration of the Employee for a period of ten (10) consecutive calendar days
or longer; 

    

     (ii)
The Employee's commission of an act or course of conduct constituting fraud or
willful malfeasance as to Vemics or the Employee's employment under this
Agreement; 

    

     (iii)
The Employee's failure to follow the reasonable, good faith instructions of the
Board or the CEO with respect to Vemics or its operations; or (iv) The
Employee's failure to substantially perform the Employee's duties to Vemics,
other than a failure resulting from the Employee's incapacity because of
physical or mental illness. 

    

     For
purposes of Sections 3(c)(iii) and 3(c)(iv) above, the Employee shall be
entitled, no more than three (3) times during the Employment Period, to written
notice that Cause exists under Section 3(c)(iii) or 3(c)(iv) of this Agreement.
The Employee shall, during the fourteen (14) calendar day period after this
notice, be entitled to cure. If the Employee does in fact cure, then Cause shall
not exist under Section 3(c)(iii) or 3(c)(iv) of this Agreement with respect to
the matters set forth in the above-described notice. 

    

     (d)
Employee shall have the right to terminate this Agreement for “Good Cause” if at
any time Vemics: (i) changes Employee’s reporting structure (including by
purporting to hire an employee higher in rank that the Employee other than the
CEO or President position) as stated in Section 2(a) (above), (ii) materially
reduces the scope of Employee’s responsibilities commensurate with an employee
of the same exact position in a company of comparable size, function and
capitalization as stated in Section 2(a) (above), (iii) changes Employee’s title
(without employees consent) as stated in Section 2(a) (above), or (iv) otherwise
breaches this Agreement. For purposes of Sections 3(d)(i), 3(d)(ii) and
3(d)(iv), Vemics shall be entitled, no more than two (2) times during the
Employment Period, to written notice that Good Cause exists under those sections
of this Agreement. Vemics shall, during the fourteen (14) calendar day period
after this notice, be entitled to cure. If Vemics does in fact cure, then Good
Cause shall not exist under Section 3(d)(i), 3(d)(ii) or 3(d)(iv) (as
applicable) with respect to the matters set forth in the above-described
notice. 

    

     Section
4. Employment Period Compensation. 

    

     (a)
Base Salary. For the services rendered by the Employee under this Agreement,
Vemics shall pay the Employee a base salary during the Employment Period at the
rate of $120,000 per year, payable in the same manner as salaries are paid to
other senior employees of the Vemics (e.g., the CEO ).Employee’s salary will
increase to $156,000 upon successful completion of funding of at least
$5,000,000 in a single closing or multiple closings within a 60 day period. The
Board may, from time to time, review the Employee's base salary for possible
merit or cost-of-living increases based on then existing policies of Vemics,
which shall be applied to the Employee no less favorably than they are applied
to other Vemics employees of equivalent or lesser stature to Employee. Any and
all of these increases in base salary shall be deemed to constitute amendments
to this Section 4(a) to reflect the increased amount effective as of the dates
established by the Board for these increases in the resolutions authorizing
these increases. 

    

     (b)
Bonuses. Commencing with the Vemics fiscal year or ending in the month of
December 2008, and for each subsequent December during the Employment Period,
Vemics shall pay to the Employee an annual bonus, the computation of which bonus
shall be determined by the Board prior to the beginning of each fiscal year of
Vemics and shall be based upon Vemics achievements with respect to certain
specific performance objectives set forth in the Vemics annual business plan
("Business Plan") as formulated, prepared, and adopted by the Board at or prior
to the beginning of each fiscal year, after consultation with the Employee and
other senior Employee officers or management of Vemics. 

    

     (c)
Other Benefits. During the Employment Period, the Employee shall be entitled
to: 

    

     (i)
Participate in any medical or health insurance plan, medical or health expense
reimbursement plan, pension or profit sharing plan or similar plans or
arrangements which may be in effect from time to time for the benefit of the
Vemics senior officers (i.e., CEO), or that is generally available to all
employees of the Vemics, in accordance with the terms of these
plans; 

    

     (ii)
Paid vacation of three weeks per year, plus the week between Christmas and New
Years; 

    

     (iii)
Any other stock options, warrants, equity grants, insurance, expense
reimbursements, car allowances and/or other fringe benefits of any kind
whatsoever, in material specifics and in the aggregate not less favorable than
those received by any other employees of the Vemics, including (without
limitation) the senior officers of Vemics (i.e., CEO). 

    

    
      
         

      

      
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     Section
5. Amounts Due Upon Termination. In the event that this Agreement and the
Employee's employment are terminated prior to the expiration of the Employment
Period, the Employee shall retain all benefits to which he is entitled upon
termination under any benefit plans of the Vemics in which the Employee is a
participant as of the termination date. In addition: 

    

     (a)
Upon this Agreement's termination pursuant to Section 3(b)(i), the Employee
shall be entitled to any unpaid base salary accrued through the date of
termination, but shall be entitled to no bonus or any other payments or
benefits. 

    

     (b)
Upon termination pursuant to Section 3(b)(ii), the Employee shall be entitled
to: (i) Any unpaid base salary accrued through the date of termination; (ii) Any
bonus that the Employee would have otherwise been entitled to receive for the
year of termination, prorated through the termination date; and (iii) All
benefits shall terminate effective the date of termination subject to any rights
employee may have under applicable State of Federal Law as pertains to Medical
Insurance Benefits such as under COBRA. 

    

     (c)
Upon termination of this Agreement pursuant to Section 3(b)(iii), the Employee's
estate shall be entitled to: 

    

     (i)
Any unpaid base salary accrued to the date of termination and (ii) Any bonus
that the Employee would have otherwise been entitled to receive for the year of
termination, prorated through the date of termination. 

    

     (d)
Upon either expiration of the Employment Period as the result of Vemics
notifying the Employee of its intention not to renew this Agreement under
Section 3(a), or 3(a)(ii) the termination of the Employee's employment by Vemics
after the expiration of the Employment Period for any reason other than Cause,
the Employee shall, in either case: (i) Be paid his or her then existing base
salary for a period of thirty days after the date of the termination of his or
her employment and (ii) Be provided the medical benefits in effect with respect
to the Employee as of the date of termination of employment for a period of
three (3) months following the date of the termination of his or her employment;
provided, however, that: (A) If Vemics cannot provide these medical insurance
benefits because the Employee is no longer an employee of Vemics, Vemics shall
pay to the Employee a dollar amount equal to the cost to the Employee to obtain
these benefits and (B) Vemics shall only be required to pay the Employee's costs
with respect to these medical insurance benefits if, and only to the extent
that, ordinary risk coverage is available with respect to the Employee at
standard individual rates. 

    

     This
base salary payment shall be payable in the same manner as salaries are paid to
other Employee employees of Vemics at that time. Any amounts payable and
benefits provided under this Section 5(d) shall be in lieu of, and not in
addition to, any amounts which the Employee might be entitled to receive under
any severance policy of Vemics. 

    

     (e)
Upon either of the following: Termination of this Agreement prior to its
expiration for anything other than Cause as defined in Section 3(c) of this
Agreement; OR termination by Employee for Good Cause, Employee shall be entitled
to all base salary, benefits, and bonuses that would have come due during the 12
month Period following Termination, payable in a lump sum (and without reduction
to NPV) within five business days after the termination by Employee takes
effect. In such circumstances, Employee shall have no obligation to mitigate and
Vemics shall have no right of offset with respect to the amounts due to the
Employee hereunder. 

    

     Section
6. Trade Secrets, Inventions, and Patents. 

    

     (a)
Definition. "Trade Secrets" shall mean any information, including but not
limited to any patent, design, formula, pattern, compilation of information,
program, device, method, technique, computer program, computer software,
process, customer list, pricing policy, marketing plan or strategy, file record,
computer printout, document, object, drawing, specification, etc., which is used
by Vemics, NuScribe, or a Vemics client that: (i) Gives an opportunity to gain
an advantage over competitors who do not know or use this Trade Secret; (ii)
Derives independent economic value, actual or potential, from not being
generally known to the public or to other persons who can obtain economic value
from this Trade Secret's disclosure or use; and (iii) Is the subject of efforts
that are reasonable under the circumstances to maintain the Trade Secret's
secrecy. 

    

     (b)
Nondisclosure. 

    

     (i)
The Employee may be provided from time to time with Vemics or a Vemics client's
Trade Secrets. The Employee shall not at any time or in any manner, directly or
indirectly, voluntarily or involuntarily, for compensation or no compensation,
use for his or her own benefit or for the benefit of any other person or entity,
or otherwise divulge, disclose, or communicate to any person or entity any
information concerning any of Vemics or a Vemics clients' Trade Secrets,
including copies thereof, except as may be permitted by the scope of the
Employee's employment by the Vemics. (ii) The Employee shall not make any
unauthorized use or disclosure, directly or indirectly, during or subsequent to
employment with the Vemics, of any Trade Secrets, knowledge, or information of a
confidential or proprietary nature, whether published or unpublished, of Vemics,
Vemics clients, or its licensors or its subsidiaries and affiliates, which the
Employee will or may have access to or become acquainted with or which will and
may be generated or acquired, during the course of employment with the Vemics or
the Vemics clients. (iii) This covenant of nondisclosure and the Employee's
liability for this covenant's breach shall survive for a period of two years2
after this Agreement's expiration or termination. 

    

     (c)
Liability for Trade Secret Disclosure. (i) Each of the restrictions contained in
this Agreement relating to Trade Secret nondisclosure is reasonable and
necessary to protect Vemics and the Vemics clients' legitimate business
interests, such that any violation would cause irreparable injury to Vemics,
Vemics clients, or both. (ii) In the event of any violation, Vemics shall be
authorized and entitled to seek, from any court of competent jurisdiction,
preliminary and permanent injunctive relief as well as an equitable accounting
of all profits or benefits (if any) arising out of this violation and any
damages for this Agreement's breach. (iii) These rights and remedies shall be
independent, severable, and cumulative and shall be in addition to any other
rights or remedies to which Vemics may be entitled. (iv) Notwithstanding
anything to the contrary herein, it will at all times be the burden of the party
seeking to enforce protection for an alleged trade secret to establish that the
matter in question is, in fact a trade secret. 

    

    
      
         

      

      
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     (d)
Additional Employee Rights and Obligations: The Employee
hereby agrees to be bound by the terms and conditions of the Proprietary
Information and Inventions Agreement attached hereto and made a part hereof. In
the event of a conflict between this agreement and Proprietary Information and
Inventions Agreement, the terms and conditions of the Proprietary Information
and Inventions Agreement shall prevail. Section 7. Notices. Any notice required
or permitted under this Agreement shall be sufficient if it is in writing and
shall be deemed given (a) at the time of personal delivery to the addressee, or
(b) at the time sent certified mail, with return receipt requested, addressed as
follows: 

    

     If to
the Employee: 

     Craig
Stout 

     9
Lynne Drive 

     Chestnut
Ridge, NY 10977 

    

     If to
the Vemics: 

     Fred
Zolla, CEO 

     Vemics,
Inc. 

     523
Avalon Gardens Drive 

     Nanuet,
NY 10954 

    

      Section
8. No Waiver. Failure by either Vemics or the Employee at any time or times
hereafter to require strict performance of any of the provisions, terms, or
conditions contained in this Agreement shall not waive, affect, or diminish any
right of either Vemics or the Employee at any time or times thereafter to demand
strict performance therewith, and with respect to any other provisions, terms,
or conditions contained in this Agreement. Any waiver of a provision, term, or
condition shall not waive or affect any other failure to perform a provision,
term, or condition of this Agreement, whether prior or subsequent thereto, and
whether of the same or a different type. None of the provisions, terms, or
conditions of this Agreement shall be deemed to have been waived by any act or
knowledge of either Vemics or the Employee except by an instrument in writing
signed by either the Vemics or the Employee and directed to either Vemics or the
Employee specifying this waiver. 

    

     Section
9. Severability. The invalidity or unenforceability of any provision of this
Agreement shall in no event affect the validity or enforceability of any other
provision. 

    

     Section
10. Prior Agreements. The Employee hereby represents and warrants to Vemics that
the Employee has all necessary power and authority to enter into this Agreement
and to perform the Employee's duties and obligations under this Agreement in
accordance with this Agreement's terms and that the execution and delivery of
this Agreement by the Employee does not conflict with, or otherwise violate, the
provisions of any other agreement to which the Employee is a party or by which
the Employee is bound, including, but not limited to, any employment agreement
or similar arrangement with NuScribe Inc. Any such prior employment arrangement
or agreement with NuScribe Inc. shall immediately, irrevocably, and
automatically terminate without liability to Vemics or the Employee upon the
execution and delivery of this Agreement by Vemics and the
Employee. 

    

     Section
11. Binding Effect and Benefit. The provisions of this Agreement shall be
binding upon, and shall inure to the benefit of, the successors and assigns of
Vemics, and to the heirs, representatives, executors, devisees, and legatees of
the Employee. 

    

     Section
12. Entire Agreement. This Agreement embodies the entire agreement between
Vemics and the Employee with respect to this subject matter, and supersedes all
prior agreements, contracts, or understandings with respect to these matters.
Except as expressly provided in Section 4(a), this Agreement may be amended only
by an instrument in writing executed by Vemics and the
Employee. 

    

     Section
13. No Assignment. This Agreement shall not be assignable by either Vemics or
the Employee. 

    

     Section
14. Captions. The captions of the several Sections and Paragraphs of this
Agreement are inserted for convenience of reference only. They constitute no
part of this Agreement and are not to be considered in its application,
interpretation, or construction. 

    

     Section
15. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed one and the same instrument which may be
sufficiently evidenced by any one counterpart. 

    

     Section
16. Applicable Law. Except to the extent preempted by federal law, the
provisions of this Agreement are to be construed, administered, and enforced in
accordance with the domestic, internal law of the State of New York, without
regard to its conflicts of law principles. 

    

    
      
         

      

      
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     IN WITNESS WHEREOF, the Vemics and the Employee
have executed this Agreement as of the date first above
written. 

    

     VEMICS,
Inc. 

    

    /s/
Fred
Zolla                  

     By:
Fred Zolla, CEO 

    

    

     EMPLOYEE 

    

    /s/
Craig
Stout                 

     By:
Craig Stout 

     

     

     

    
      
         

      

      
         5ex10-9.htm

     Exhibit
10.9 

     CONSULTING
AGREEMENT 

    

     THIS
AGREEMENT is made this 4 day of October, 2006 (“Effective Date” ) by and between
Brian Groh, an adult individual residing at 11201 Native Texan Trail, Austin,
Texas, USA 78735 (the “Consultant” ) and Vemics, Inc, a Delaware Corporation
whose address is 523 Avalon Gardens Drive, Nanuet, New York 10954 (“Vemics”). 

    

     WITNESSETH: 

    

     WHEREAS,
Vemics LiveAccess is a fully managed online conferencing and collaboration
service, that is made available for access by users on a subscription basis (the
“Service”); and 

    

     WHEREAS,
the Consultant has experience and expertise in the marketing of various products
through the internet, direct sales and other methods; 

    

     WHEREAS,
the parties have agreed to enter into a consulting relationship under which the
Consultant will promote Vemics’s business relationships. 

    

     NOW,
THEREFORE, for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as
follows: 

    

     1.
APPOINTMENT AS CONSULTANT 

    

     Vemics
hereby hires Consultant, on a non-exclusive basis, to advise and work with
Vemics’s officers and board of directors in connection with Vemics’s growth
strategy, including without limitation, and as applicable, helping to develop or
create a business plan and/or product roadmap, going to marketing and strategy
meetings, helping to develop sales strategies, helping to develop a finance
and/or funding plan, cost control, quality control, operations support, advising
with respect to hiring of key individuals, helping with introducing legal and
accounting firms and banks, assisting in negotiations of major deals and key
contracts, making introductions to manufacturers, suppliers and customers,
developing rapports with banks and/or investors, assisting in the development of
a board of directors, providing guidance in future developments, business
development, and advising with respect to fundings, an initial public offering,
and mergers and acquisitions (such services shall collectively be referred to as
the “Services”). In connection with the Services, Vemics hereby authorizes
Consultant consistent with and in compliance with any and all applicable laws
and regulations, to obtain investors, underwriters, lenders and/or guarantors
(collectively, “Investors”) to provide financing for Vemics on terms acceptable
to Vemics and the Investors. 

    

     2.
COMPENSATION FOR SERVICES 

    

     (a)
Compensation for Services. 

    

     As
compensation for providing the Services, Vemics will pay to Consultant $5,000.00
per month, on or before the first day of each month, for the term hereof.
Additionally, there will be various projects assigned the Consultant during the
course of the term. Bonuses will be paid to the Consultant by the Company for
the successful completion of each project. Terms for project completion bonus
structure will be on a case by case basis and will be mutually agreed on by
the 

     Company
and Consultant prior to the assignment of the project. Bonus combination may be
in the form of shares or cash, or a combination thereof 

    

     (b)
Expense Reimbursement. 

    

     Consultant
shall be separately reimbursed for all out-of-pocket expenses incurred in
performance of the Services, such as travel, entertainment and telephone
expenses, printing, and road shows for Investors (“Expenses”). Company shall
reimburse Expenses within ten (10) business days of receiving itemized vouchers
with receipts. 

    

     3.
TERM 

    

     (a)
Initial Term and Extensions.
The term of this Agreement shall begin on the date of this Agreement and
shall continue for a period of twelve (12) months from such date, unless
terminated earlier as provided in Section 3(b) hereof. Upon the expiration of
the initial term, the term of this Agreement shall be renewed and extended
automatically for additional, consecutive periods of twelve (12) months each,
unless Consultant shall have given written notice to Vemics or Vemics shall have
given written notice to Consultant at least sixty (60) days prior to the last
day of the initial term or any renewal period, as the case may be, of Vemics’s
or Consultant’s intention to terminate this Agreement, in which case such
termination shall be effective, and the tenn of this Agreement shall end, on the
last day of such term, unless otherwise terminated as provided in Section 3(b)
hereof. 

    

     (b)
Termination. In
addition to its termination by the expiration of the term of this Agreement as
provided in Section 3(a), this Agreement may be terminated as
follows: 

    

     (i) In
the event that Consultant and Vemics mutually agree in writing to terminate this
Agreement, this Agreement shall be terminated on the terms and date stipulated
in such written agreement. 

    

     (ii)
In the event either party fails to discharge any of its material obligations
hereunder, or commits a material breach of this Agreement, and such default or
breach continues for a period of 30 days after the other party has notified the
former party of such default or breach in writing, this Agreement may then be
terminated at the option of the non-breaching party by written notice thereof to
the breaching party. 

    

    
      
         

      

      
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     4.
ACTING AS CONSULTANT ONLY 

    

     It is
understood that Consultant in connection with the Services may act as a finder
only, is not a licensed securities or real estate broker or dealer, and shall
have no authority to enter into any commitments on Vemics’s behalf or to hold
any funds or securities in connection with a financing or an acquisition, or to
perform any act which would require Consultant to become licensed as a
securities or real estate broker or dealer. 

    

     5. NATURE OF RELATIONSHIP
BETWEEN THE PARTIES 

    

     Consultant
shall render the Services hereunder as an independent contractor. Vemics is
merely purchasing the Services hereunder, and the decision to take, modif, or
reject the advice of Consultant shall be that of Vemics. Consultant shall not be
responsible for, and shall incur no 

     liability
to any party for, any results or consequences arising directly or indirectly out
of the actions of Vemics subsequent to the delivery of any advice or
recommendation of Consultant. It is not the intention of the parties to this
Agreement to create, by virtue of this Agreement, any trust, partnership or
joint venture between Consultant, on the one hand, and Vemics or any of its
affiliates, on the other hand, or, to make them legal representatives or agents
of each other or to create any fiduciary relationship among
them. 

    

     6.
STANDARD OF CARE 

    

     Consultant
shall provide his Services under this Agreement in a professional manner, giving
advice and making recommendations that are in accordance with all applicable
laws and regulations using the same degree of care, skill and prudence that
would be customarily exercised for his own account, in a manner he reasonably
believes to be in the best interest of Vemics as an independent company hiring
consulting services to assist it to achieve its objectives. Notwithstanding the
foregoing, however, the parties expressly agree that the attainment of any
specific results in operations or financial condition of Vemics, or any company
or business acquired by Vemics, is the sole responsibility of
Vemics. 

    

     7.
INTELLECTUAL PROPERTY 

    

     Vemics
shall exclusively own its respective trademarks and service marks, copyrights,
trade secrets, and patents (collectively, the “Intellectual Property”) and the
Consultant will not have any claim or right to the Intellectual Property of
Vemics by virtue of this Agreement or the performance of services hereunder. The
Consultant will not take any action or make any claim to any Intellectual
Property belonging to Vemics, whether during the Term of this Agreement or
thereafter. 

    

     8.
REPRESENTATIONS AND WARRANTIES 

    

     A.
Each party represents and warrants that it has the right, title, interest and
authority to enter into this Agreement and to fully perform its obligations
hereunder, and that the rights granted hereunder shall not violate the rights of
any third party. Each party represents and warrants that its conduct hereunder
shall conform to all applicable federal, state and local law and
regulation. 

    

     B.
Neither party will have liability to the other for any damages other than direct
damages. 

     VEMICS
DOES NOT MAKE ANY WARRANTY REGARDING THE QUALITY OF ITS GOODS AND SERVICES.. IN
NO EVENT WILL VEMICS BE LIABLE FOR ANY UNAUTHORIZED REPRESENTATION OR WARRANTY
MADE TO ANY END USER OR THIRD PARTY BY THE CONSULTANT, OR ANY AGENT OF THE
CONSULTANT.  THESE UMITATJONS SHALL SURVIVE AND APPLY NOTWITHSTANDING
THE VALIDITY OF THE LIMITED REMEDIES PROVIDED FOR IN THIS
AGREEMENT. 

    

     9.
INDEMNITY 

    

     Notwithstanding
anything to the contrary herein, Consultant shall indemnify, defend and hold
harmless Vemics, its officers, directors, shareholders, employees, parent and
affiliate entities, agents and representatives, against all damages, claims,
liabilities, losses and other expenses, including without limitation reasonable
attorney fees and costs, whether or not a lawsuit or other proceedings is filed,
that in any way arise out of or are related to: (a) any claim against Vemics
arising out of any breach of any unauthorized covenants, warranties,
representations and agreements made by Consultant to any third party and/or (b)
Consultant’s material breach of any provision of this Agreement, and/or (c) the
grossly negligent or willful acts or omissions of Consultant. In the event that
Consultant fails to promptly indemnify and defend such claims and/or pay
expenses as provided above, Vemics shall have the right to defend itself and
Consultant shall reimburse Vemics for all of its reasonable attorneys’ fees,
costs and damages incurred in settling or defending such claims within sixty
(60) days of Vemics’s request for same. 

    

     Notwithstanding
anything to the contrary herein, Vemics shall indemnify, defend and hold
harmless Consultant, against all damages, claims, liabilities, losses and other
expenses, including without limitation reasonable attorney fees and costs,
whether or not a lawsuit or other proceedings is filed, that in any way arise
out of or are related to any act in the authorized, normal and ordinary course
of Consultant’s business on behalf of Vemics. In the event that Vemics fails to
promptly indemnify and defend such claims and/or pay expenses as provided above,
Consultant shall have the right to defend itself and Vemics shall reimburse
Consultant for all of its reasonable attorneys’ fees, costs and damages incurred
in settling or defending such claims within sixty (60) days of Consultant’s
request for same. 

    

    
      
         

      

      
         2 

        
          

        

      

      
         

      

    

     10. NO
JOINT VENTURE 

    

     Nothing
in the Agreement shall be deemed to constitute, create, give effect to or
otherwise recognize a partnership, joint venture or formal business entity -of
any kind; and the rights and obligations of the Parties shall be limited to
those expressly set forth herein. No party is granted any right or authority to
assume or create any obligation or responsibility, express or implied, on behalf
of; or in the name of, another party or to bind another in any matter or thing
whatsoever. 

    

     11.
CONFIDENTIALITY AND NONSOLICITATION 

    

     A.
“Confidential Information” as used in this Agreement shall mean any and all
technical and non-technical information including but not limited to 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 its
affiliates, and includes, without limitation, Vemics and their affiliates
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” also includes proprietary and/or confidential information of any
third party that may disclose such information to Consultant in the course of
Vemics’s business. 

    

     B. All
Confidential Information disclosed both orally and in writing by Vemics will be
considered Confidential Information by Consultant and subject to terms of this
Agreement, even if such information is not conspicuously designated as
“Confidential” or even when provided orally and not identified as confidential
at the time of disclosure. 

    

     C.
Consultant acknowledges that Vemics and its employees and shareholders have over
many years devoted substantial time, effort and resources to developing Vemics’s
trade secrets and its other confidential and proprietary information, as well as
Vemics’s relationships with customers, suppliers, employees and others doing
business with Vemics; that such relationships, trade secrets and other
information are vital to the successful conduct of Vernics’s business in the
future; that Vemics, in the furtherance of its business, is providing Consultant
with the opportunity and support necessary to them to establish personal and
professional relationships with customers, suppliers, employees and others
having business relationships with Vemics and is affording Consultant access to
Vemics’s trade secrets and other confidential and proprietary information; that
because of the opportunities and support so provided to Consultant and because
of Consultant’s access to Vemics’s confidential information and trade secrets,
Consultant would be in a unique position to divert business from Vemics and to
commit irreparable damage to Vemics were Consultant to be allowed to compete
with Vemics or to commit any of the other acts prohibited by this Section 9 of
the Agreement; that the enforcement of the restrictive covenants against
Consultant would not
impose any undue burden upon Consultant; that none of the restrictive
covenants is unreasonable as to period or geographic area; and that the ability
to enforce the restrictive covenants against Consultant is a material inducement
to the decision of Vemics to consummate this Agreement . 

    

     D.
Consultant hereby agrees that it will not make use of, disseminate, or in any
way disclose any 

     Confidential
Information of Vemics to any person, firm, or business, except to the extent
necessary for negotiations, discussions, and consultations, any purpose of
Vemics authorized by this agreement and any purpose Vemics may hereafter
authorize in writing. Consultant hereby also agrees that it will use the
Confidential Information disclosed by Company for informational purposes only.
Consultant hereby further agrees that it shall not use the Confidential
Information of Company in the production and/or the providing of any products
and/or services now or in anytime in the future. 

    

     E.
Consultant agrees that it shall treat all Confidential Information of Company
with the same degree of care as it accords to its own Confidential Information,
and Consultant represents that it exercises reasonable care to protect its own
Confidential Information. 

    

     F.
Consultant hereby agrees that it shall disclose Confidential Information of
Vemics only to those of its officer(s), manager(s), and/or employee(s) who need
to know such information and certifies that such officer(s), manager(s), and/or
employee(s) have previously agreed, either as a condition of employment or in
order to obtain the Confidential Information, to be bound by terms and
conditions substantially similar to those of this Agreement. 

    

     G.
Consultant will immediately give notice to Company of any unauthorized use or
disclosure of the Confidential Information. Consultant agrees to assist Company
in remedying any such unauthorized use or disclosure of the Confidential
Information. 

    

     H.
Upon the request of Vemics and/or termination of this Agreement, the Consultant
will promptly return all confidential information furnished hereunder and all
copies thereof. 

    

     I.
Solicitation of Business. During the Restricted Period, Consultant will not
solicit or assist any other person to solicit any business (other than for
Vemics) from any present or past customer of Vemics; or request or advise any
present or future customer of Vemics to withdraw, curtail or cancel its business
dealings with Vemics; or commit any other act or assist others to commit any
other act which might injure the business of Vemics. During the Restricted
Period, Vemics will not solicit or assist any other person to solicit any
business (other than for Consultant) from any present or past customer of
Consultant; or request or advise any present or future customer of Consultant to
withdraw, curtail or cancel its business dealings with Consultant; or commit any
other act or assist others to commit any other act which might injure the
business of Consultant. 

    

     K.
Employees. During the Restricted Period, The Parties will not directly or
indirectly: (a) solicit or encourage any employee of the other Party to leave
the employ of Vemics or the Consultant; or (b) hire any employee who has left
the employ of Vemics or the Consultant if the hiring is proposed to occur within
six months after the termination of the employee’s employment with Vemics or the
Consultant. 

    

    
      
         

      

      
         3 

        
          

        

      

      
         

      

    

     L.
Consultants. During the Restricted Period, Consultant will not directly or
indirectly solicit or encourage any consultant then under contract with Vemics
to cease work for Vemics. 

    

     M.
Remedies. In the event of a breach or a threatened breach of any of the
Provisions and/or Covenants set forth in this Section 11 of the Agreement above
(the “Covenants”), Vemics will, in addition to the remedies provided by law,
have: 

    

     (a)
the right and remedy to have the Covenants specifically enforced by any court
having equity jurisdiction, it being acknowledged and agreed that any material
breach of any of the Covenants will cause irreparable injury to Vemics and that
money damages will not provide an adequate remedy to Vemics;
and 

     (b)
the right and remedy to require a person to account for and pay over to Vemics
all compensation, profits, moneys, accruals, increments or other benefits
(collectively the “Benefits”) derived or received by Consultant as a result of
any transactions constituting a breach of any of the Covenants, and Consultant
hereby agrees to account for and pay over the Benefits to
Vemics. 

    

     N. The
obligations of Vemics and Consultant set forth in this paragraph 11 of this
agreement shall survive the termination of this agreement. 

    

     12.
PUBLICITY 

    

     The
Parties agree that all publicity and public announcements concerning the
formation and existence of this Agreement shall be jointly planned and
coordinated by and among the Parties. Neither party shall disclose any of the
specific terms of this Agreement to any third party without the prior written
consent of the other party, which consent shall not be withheld unreasonably.
Notwithstanding the foregoing, any party may disclose information concerning
this Agreement as required by the rules, orders, regulations, subpoenas or
directives of a court, government or governmental agency, after giving prior
notice to the other party. 

    

     13.
EFFECT OF TERMINATION 

    

     Upon
termination or expiration of this Agreement, all rights granted to the
Consultant shall forthwith revert to Vemics. 

    

     14.
FORCE MAJEURE 

    

     Neither
party will be liable for, or will be considered to be in breach of or default
under this Agreement on account of, any delay or failure to perform as required
by this Agreement as a result of any causes or conditions that are beyond such
Party’s reasonable control and that such Party is unable to overcome through the
exercise of commercially reasonable diligence. If any force majeure event
occurs, the affected Party will give prompt written notice to the other Party
and will use commercially reasonable efforts to minimize the impact of the
event. 

    

     15. NOTICES 

    

     A. Any
notice required to be given pursuant to this Agreement shall be in writing and
mailed by certified or registered mail, return receipt requested or delivered by
a national overnight express service. 

    

     For
Vemics: 

     Fred
Zolla, CEO 

     Vemics,
Inc 

     523
Avalon Gardens Drive 

     Nanuet,
NY 10954 

    

     For
the Consultant 

     Brian
Groh 

     11201
Native Texan Trail, 

     Austin,
Texas, USA 78735 

    

     B.
Either party may change the address to which notice or payment is to be sent by
written notice to the other party pursuant to the provisions of this
paragraph. 

    

    
      
         

      

      
         4 

        
          

        

      

      
         

      

    

     16.
JURISDICTION DISPUTES 

    

     A.
This Agreement shall be governed by the laws of New York. 

     B. All
disputes hereunder shall be resolved in the applicable state or federal courts
in County of Rockland in the State of New York. The parties consent to the
jurisdiction of such courts, agree to accept service of process by mail, and
waive any jurisdictional or venue defenses otherwise available. 

    

     17.
AGREEMENT BINDING ON SUCCESSORS 

    

     This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto, their heirs, administrators, successors and assigns. 

    

     18.
WAIVER 

    

     No
waiver by either party of any default shall be deemed as a waiver of any prior
or subsequent default of the same or other provisions of this
Agreement. 

    

     19.
SEVERABILITY 

    

     If any
provision hereof is held invalid or unenforceable by a court of competent
jurisdiction, such invalidity shall not affect the validity or operation of any
other provision and such invalid provision shall be deemed to be severed from
the Agreement. 

    

     20.
ASSIGNABILITY 

    

     The
license granted hereunder is specific to the Consultant and may not be assigned
by any act of the Consultant or by operation of law unless with the written
consent of Vemics. 

    

     21.
INTEGRATION 

    

     This
Agreement constitutes the entire understanding of the parties, and revokes and
supersedes all prior agreements between the parties and is intended as a final
expression of their Agreement. It shall not be modified or amended except in a
writing signed by the parties hereto and specifically referring to this
Agreement. This Agreement shall take precedence over any other documents which
may be in conflict therewith. 

    

    
      
         

      

      
         5 

        
          

        

      

      
         

      

    

     IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have
each executed this agreement on the day indicated. 

    

     Consultant                                                                                     Vemics
Inc. 

    

    

     By:
/s/Brian
Groh                                                                          By:
/s/Fred
Zolla          
 

     Brian
Groh                                                                                    
Fred Zolla, CEO 

    

     Dated:October 15,
2006                                                              
Dated: October 15,
2006 

    

    

    
      
         

      

      
         6

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