Document:

ex10-18.htm

Exhibit 10.18

 

FIRST AMENDMENT TO

EXECUTIVE EMPLOYMENT AGREEMENT

This First Amendment to Executive Employment Agreement (this “Agreement”) dated December 21, 2011 to be effective November 17, 2011 (the “Effective Date”), is by and between Coil Tubing Technology, Inc., a Nevada corporation (“Coil Tubing”) and Jason Swinford, an
individual (“Swinford”), each referred to herein as a “Party” and collectively the “Parties”.

 

	
  

	
W I T N E S S E T H:

WHEREAS, the Parties previously entered into a Executive Employment Agreement (the “Employment Agreement”) on or around November 30, 2010, a copy of which is attached hereto as Exhibit A;

WHEREAS, the Parties previously entered into a First Amendment to the Employment Agreement on or around December 14, 2011, which terms and conditions were agreed to on such date, but which was never finalized and did not become effective and which is amended, superseded and replaced in all respects by this Agreement;

WHEREAS, capitalized terms used herein shall have the meaning ascribed to such terms in the Employment Agreement, unless otherwise stated herein or the context requires otherwise; and

WHEREAS, the Parties desire to enter into this Agreement to modify and amend the Employment Agreement as provided below.

NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and other consideration, which consideration the Parties hereby acknowledge and confirm the sufficiency thereof, the Parties hereto agree as follows:

1. Amendments to Employment Agreement. 

(a)           The term “Chief Operating Officer” as set forth in Section 1 of the Employment Agreement is hereby amended and revised to read “Chief Executive Officer”.

  

  

  

(b)           Effective as of the Effective Date, the annual base salary compensation due to Swinford as provided in Section 4 of the Employment Agreement shall be amended and revised to read “$200,000” and each reference to “$132,000” shall be replaced by a reference to
“$200,000”.

(c)           New Sections 6(c) and 6(d) shall be added to the Employment Agreement, which shall provide as follows:

“(c)         The Company shall reimburse Officer for all reasonable, out-of-pocket business expenses incurred in the performance of his duties hereunder and/or on behalf of the Company, consistent with the Company’s policies and procedures, in effect from time to time including, but not limited to reimbursement for Company related items charged to the Officer’s personal credit card and personal loans made to the Company by the Officer.

(d)           Any expense reimbursements, outstanding loans or other amounts owed to the Officer by the Company shall be paid to the Officer immediately upon the termination of this Agreement for any reason.”

(d)            Section 4(c) of the Employment Agreement shall be amended by the following Section 4(c), which shall replace and supersede Section 4(c) of the Employment Agreement for all purposes, and further provided that all share amounts and exercise prices described below have already been retroactively adjusted for the Company’s 1:300 reverse stock split:

“(c)           Officer shall receive an option (the “Option”) with the following terms and conditions:

i.  The Officer shall be granted an option to purchase 301,667 shares of the Company’s common stock upon the Parties’ entry into this Agreement (the “Initial Option”), which Initial Option shall have such terms and conditions as described below, provided that options to purchase 1,667 shares of common stock shall vest to the Officer upon the Execution Date (the “Execution Option”), with options to purchase the
remaining amount of the Initial Option vesting to the Officer at the rate of 100,000 options per year, over the three years following the Execution Date, with 100,000 options vesting on December 14, 2011 (the “2011 Option”), 100,000 options vesting on December 31, 2012 (the “2012 Option”) and the final 100,000 options vesting on December 31, 2013 (the “2013 Option”), provided that the Officer is still employed by the Company on such date(s).

ii.  The Execution Option shall have an exercise price of $7.50 per share, the 2011 Option shall have an exercise price of $1.00 per share, and the 2012 Option and 2013 Option shall have an exercise price equal to the mean between the highest and lowest quoted selling prices of the Company’s common stock on the pinksheets trading market or Over-The-Counter Bulletin Board (which ever is applicable) on the last day that the Company’s common stock trades prior to the vesting date of such option as provided above, subject in each case to adjustment for stock splits and recapitalizations as provided in the
Option.

iii.  Each portion of the Option which vests to Officer as provided above shall be exercisable by Officer at any time until the fifth anniversary of the vesting date of such portion of the Option, provided that termination of the Option shall be subject to the termination provisions of the Company’s 2010 Stock Incentive Plan (the “Plan”), and all Options shall provide for a cashless exercise provision.

iv.  The Option shall be evidenced by Option Agreements in such form as approved by the Company’s Board of Directors, and with terms and conditions consistent with the Plan.”

 

  

  

  

2.           Reconfirmation of Employment Agreement. The Parties hereby reaffirm all terms, conditions, covenants, representations and warranties made in the Employment Agreement, to the extent the same are not amended hereby.

 

3.           Effect of Agreement. Upon the effectiveness of this Agreement, each reference in the Employment Agreement to “Agreement,” “hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to such Executive Employment Agreement as modified or waived hereby.

 

4.           Employment Agreement to Continue in Full Force and Effect.  Except as specifically modified herein, the Employment Agreement and the terms and conditions thereof shall remain in full force and effect.

 

5.           Effect of Facsimile and Photocopied Signatures. This Agreement may be executed in several counterparts, each of which is an original.  It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.  A copy of this Agreement signed by one Party and faxed to another
Party shall be deemed to have been executed and delivered by the signing Party as though an original.  A photocopy of this Agreement shall be effective as an original for all purposes.

[Remainder of page left intentionally blank.  Signature page follows.]

 

  

  

  

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement to be effective as of the Effective Date.

“COIL TUBING”

	
COIL TUBING TECHNOLOGY, INC.

	
/s/ Jerry Swinford

	
Jerry Swinford

Executive Vice President

Date: 12/21/11

“SWINFORD”

	
/s/ Jason Swinford

Jason Swinford

Date: 12/21/11

Acknowledged and Agreed to by:

/s/ Herbert C. Pohlmann

Herbert C. Pohlmann

Date: 12/26/11ex10-19.htm

Exhibit 10.19

 

INTELLECTUAL PROPERTY ASSIGNMENT

This Intellectual Property Assignment (the “Assignment” or “Agreement”) is entered on January 18, 2012 to be effective as of November 30, 2010, by and between Jerry L. Swinford, an individual residing in the State of Texas (“Assignor”) and Coil Tubing Technology, Inc., a Nevada corporation (“Assignee”).  Assignor and Assignee may be referred to herein individually as a “Party” and jointly as the “Parties.”

WHEREAS, Assignor is the named inventor and owner of all rights, title, and interest in and to the intellectual property listed in Exhibit A, attached hereto and incorporated herein as if fully reproduced (the “Transferred Assets”); and

WHEREAS, Assignor desires to assign and transfer to Assignee, and Assignee desired to obtain from Assignor an assignment and transfer of, the Transferred Assets pursuant to this Assignment.

NOW THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiently of which is hereby acknowledged as received, and in consideration of the foregoing and the covenants and promises contained herein, the Parties agree as follows:

1. Assignment of Transferred Assets.  Assignor hereby unconditionally and irrevocably sells, assigns, transfers, conveys, and delivers to Assignee, its successors and assigns, all his right, title, and interest in, to, and under the Transferred Assets, said Transferred Assets set forth herein in Exhibit A, and any reissues, reexaminations, renewals, continuations, continuations-in-part, divisions, substitute applications thereof, and the like, and
any extensions thereof, and all patents worldwide that may be granted thereon, together with the right to file such applications and the right to claim for the same the priority rights derived from such patent application under the laws of the United States and its territorial possessions, the International Convention for the Protection of Industrial Property, or any other international agreement or the domestic laws of the country in which any such application is filed, as may be applicable, to be held and enjoyed by Assignee for its own use and enjoyment, and for the use and enjoyment of its successors and assigns, to the end of the term or terms for which such patents may be granted or reissued, as fully and entirely as the same would have been held and enjoyed by Assignor if this assignment and sale had not been made.

2. Cooperation with Assignee.  Assignor agrees to cooperate with Assignee to provide the necessary executed assignments and other documents as required to perfect the assignment set forth in this Section 1.  Assignor further covenants that Assignee will, upon its request, be provided promptly with all pertinent facts and documents relating to said inventions and said Letters Patent and legal equivalents as may be known and accessible to
Assignor and will testify as to the same in any interference, litigation, or proceeding related thereto and will promptly execute and deliver to Assignee or its legal representatives any and all papers, instruments or affidavits required to apply for, obtain, maintain, issue and enforce said application, said inventions and said Letters Patent and said equivalents thereof which may be necessary or desirable to carry out the purposes thereof.

  

  

  

3. Issuance of Future Patents.  Assignor hereby authorizes and requests the Commissioner of Patents and Trademarks of the United States, and any officer of any country or countries foreign to the United States, whose duty it is to issue patents or other evidence or forms of intellectual property protection to issue respective Letters of Patent to Assignee, and the entire right, title, and interest in and to the same, for its sole use and benefit;
and for the use and benefit of its successors and assigns, to the full end of the term(s) for which said Patent(s) may be granted, as fully and entirely as the same would have been held by me had this assignment not been made.

4. No Prior Encumbrance.  Assignor hereby covenants that no assignment, sale, agreement, or encumbrance has been or will be made or entered into which would conflict with the terms of this Assignment.

5. Right to Sue for Past Infringement.  Assignor hereby expressly grants to Assignee all of Assignor’s rights to bring any necessary action, including, but not limited to lawsuits, against any past, present, or future third party infringers, potential or actual, of any Transferred Asset as if the Assignor himself were bringing such action.  Assignee shall have the right to any and all recoveries from any such actions and Assignor
hereby waives any recovery obtained by Assignee.

6. Indemnification.  ASSIGNEE HEREBY AGREES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS THE ASSIGNOR FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO, ATTORNEYS’ FEES AND COURT COSTS), AND CAUSES OF ACTION OF EVERY KIND AND CHARACTER, WITHOUT LIMITS AND WITHOUT REGARD TO THE CAUSE OR CAUSES THEREOF OR NEGLIGENCE OF ANY PARTY, INCLUDING, BUT NOT LIMITED TO, THE SOLE, ACTIVE, PASSIVE, JOINT, OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY (OF WHATEVER
CHARACTER) OF ASSIGNOR, ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THIS ASSIGNMENT AND THE TRANSFERRED ASSETS.  ASSIGNEE’S INDEMNITY UNDER THIS PARAGRAPH SHALL BE WITHOUT REGARD TO AND WITHOUT ANY RIGHT TO CONTRIBUTION FROM ANY INSURANCE MAINTAINED BY ASSIGNOR.

7. Prior Agreements; Waiver.  No modification of this Assignment shall be of any force or effect unless in writing and signed by an authorized signatory of both Parties.  This Assignment constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes those provisions of all
prior and contemporaneous agreements, representations and understandings of the parties pertaining to the same subject matter. No waiver of any of the provisions of this Assignment shall be deemed to, or shall constitute a waiver of, any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

  

  

  

8. Captions and Headings.  Captions and headings used herein are inserted only for convenience of reference only and shall not operate to modify, interpret, alter, limit or define any provision hereof.

IN WITNESS WHEREOF, Assignor hereby assigns the Transferred Assets to the Assignee and the Assignee hereby accepts said assignment and has hereunto set hand and seal on the following dates.

	
ASSIGNOR:

	
ASSIGNEE:

	  	
COIL TUBING TECHNOLOGY, INC.

	  	  
	
/s/ Jerry L. Swinford

	
By:  /s/ Jason L. Swinford

	
Jerry L. Swinford, Inventor

	
Jason L. Swinford, CEO

	  	  
	
Date: 1-18-12

	
Date: 1-18-12

NOTARIZATIONS

 

	
STATE OF TEXAS

	
§

	
COUNTY OF HARRIS

	
§

 

Before me this 18th day of January, 2012, personally appeared Jerry L. Swinford, to me known to be the person who is described in and who executed the foregoing assignment instrument and acknowledge to me that he executed the same of his own free will for the purpose therein expressed.

	  	
/s/ Patricia Staten

	  	
Notary Public in and for the State of Texas

 

	
STATE OF TEXAS

	
§

	
COUNTY OF HARRIS

	
§

 

This instrument was acknowledged before me on the 18th day of January, 2012, by Jason L. Swinford, Chief Executive Officer of Coil Tubing Technology, Inc., a Texas Corporation, who acknowledged to me that he has the authority to sign this document on behalf of said corporation.

	  	
/s/ Patricia Staten

	  	
Notary Public in and for the State of Texas

  

  

  

EXHIBIT A

TRANSFERRED ASSETS

	
Country

	
Patent Number or

Application Number

	
Title

 

	
Canada

	
2,646,326

	
Jet Motor and Method for Providing Rotation in a

Downhole Tool

	
Canada

	
2,723,420

	
Drilling Jar

 

	
Canada

	
2,734,285

	
Rotation Tool

	
Indonesia

	
W00201001371

	
Rotation Tool

	
Indonesia

	
W00201004067

	
Drilling Jar

	
Patent Cooperation

Treaty

	
PCT/US2011/028241

	
Method and Apparatus for Washing Downhole

Tubing and Equipment

	
Singapore

	
146369

	
Jet Motor and Method for Providing Rotation in a

Downhole Tool

	
United States

	
5,584,342

	
Subterranean Rotation-Inducing Device and

Method

	
United States

	
7,686,102

	
Jet Motor for Providing Rotation in a Downhole

Tool

	
United States

	
7,946,348

	
Rotation Tool

	
United States

	
12/480,680

	
Jet Hammer

	
United States

	
12/437,525

	
Drilling Jar

	
United States

	
13/046,662

	
Method and Apparatus for Washing Downhole

Tubulars and Equipment

	
United States

	
61/468,637

	
Downhole Oscillator

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