Attached files
file | filename |
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8-K - CURRENT REPORT ON FORM 8-K - GABRIEL TECHNOLOGIES CORP | gabriel_8k-082109.htm |
EX-10.3 - FORM OF PROMISSORY NOTE PURCHASE AGREEMENT - GABRIEL TECHNOLOGIES CORP | gabriel_8k-ex1003.htm |
EX-99.1 - SHAREHOLDER LETTER - GABRIEL TECHNOLOGIES CORP | gabriel_8k-ex9901.htm |
EX-10.2 - AMENDMENT TO EMPLOYMENT AGREEMENT - GABRIEL TECHNOLOGIES CORP | gabriel_8k-ex1002.htm |
Exhibit
10.1
EMPLOYMENT
AGREEMENT
THIS
EMPLOYMENT AGREEMENT (“Agreement”) is hereby made and entered into as of the
21st of August, 2009 by and between Gabriel Technologies Corporation
(“Company”), a Delaware Corporation, on the one hand, and George lingo
(“Employee”), an individual, on the other hand. The Company and the
Employee acknowledge that the Employee has operated as the Company’s President
and CEO effective as of June 2, 2009. Accordingly, for purposes of
this Agreement June 2, 2009 shall be the “Effective Date” of this
Agreement. The Company and Employee shall at times be referred to
jointly as the “Parties.”
RECITALS
WHEREAS,
Company desires to employ Employee as its CEO and President, as well as
President of Trace, LLC, a wholly owned subsidiary, and Gabriel Technologies,
LLC, (“GTLLC”) a wholly owned subsidiary; and, Employee desires to be employed
by the Company upon the terms and conditions hereinafter set forth;
NOW
THEREFORE, for and in consideration of the mutual covenants and promises
contained herein, and for other good and valuable consideration received, the
Parties agree as follows:
I.
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DEFINITIONS
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For
purposes of this Agreement, the following terms shall have the meanings set
forth herein:
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A.
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The
term “Confidential Information” shall mean, with respect to the Company,
any information relating to its current litigation with Qualcomm
Technology as well as any other pending litigation matters and with
respect to any wholly owned Company subsidiaries, any information or data
regarding past, current and prospective operations, sales, purchases,
marketing, distribution, customers, customer lists and requirements,
suppliers, supplier lists, sales methods and strategies, technical
information, finances, banking, loans, real estate, investments,
acquisitions, negotiations, plans, documents, records, computer data,
contracts, oral agreements and any other aspect of the Company’s business
or personal life or personal life-style which has not been advertised or
communicated to the general public.
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B.
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The
term “Conflict of Interest” shall mean any activity, association,
relationship or contact by the Employee with one or more of the Company’s
competitors, suppliers, dealers or customers (collectively “Company
Suppliers”) which might adversely affect the performance of the Employee’s
duties to the Company. Notwithstanding the foregoing, the
Company acknowledges that the Employee is currently the CEO of an online
travel business, and will likely become involved as an employee and/or
consultant in other business during the term if this Agreement, and that
in such capacity the Employee may have relationships with such Company
Suppliers and that such relationships are deemed to not be a Conflict of
Interest and that Employee may develop additional relationships with
Company Suppliers which will not be deemed to be a Conflict of Interest
provided such relationships involve businesses which are not competitive
with the Company; provided, however, that Employee shall disclose such
employment and/or consultation relationships and compensation derived
therefrom to the Board of Directors of the Company within a reasonable
timeframe.
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C.
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The
term “Trade Secret” shall mean with respect to the Company, any litigation
strategy relating to its current litigation with Qualcomm Technology as
well as any other litigation strategies with respect to pending litigation
matters and with respect to any wholly owned Company subsidiaries shall
mean any information concerning any designs, formulae, procedures,
operations, investments, techniques, data, software, storage media or
other compilations of information, records, financing, costs, employees,
purchasing, accounting, marketing, merchandising, printing, sales,
salaries, pricing, profits, plans for future development, and the
identity, requirements, preferences, practices and methods of doing
business of specific parties with whom the Company transacts business, and
all other information which is related to any product or business, and all
other information which is related to arty product or business of the
industry in which the Company transacts business or acquired from public
sources, including any formula, pattern, compilation, program, device,
method, technique or process that 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 its disclosure or use and
is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.
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II.
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TERMS OF
EMPLOYMENT
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A.
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Position. Company
shall hire Employee in the position of President, Chief Executive Officer,
and Chairman of the Company. Employee shall be hired as an “at
will” employee whose employment may be terminated by either of the Parties
at their individual choice at any time, without advance notice, and
subject to the terms and conditions contained in this
Agreement. In his capacity as President and Chief Executive
Officer of the Company, Employee shall also serve as President of Trace,
LLC, and as President of GTLLC.
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B.
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Relationship of the
parties. Employee shall not be deemed a joint venturer
or partner of Company.
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C.
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Maximum
Term. The Company currently desires to employ Employee
for two (2) years from the Effective Date (“Initial Term”) of this
Agreement. Should Employee remain employed with the Company at
the conclusion of the Initial Term, the Company shall have the unilateral
option of renewing Employee’s employment for one (1) additional one year
at the terms contained herein (“Option Term”). Should Company
fail to advise the Employee that it is exercising its right to the Option
Term within sixty (60) days prior to the conclusion of the Initial Term,
Employee’s employment with Company shall automatically be renewed on the
same terms and conditions as stated in this Agreement. The
Employee shall again be entitled to receive the financial benefits set
forth in Section II(E) and all other benefits stated in this
Agreement. Nothing contained in this section shall affect the
Employee’s “at-will’ status or prevent the Company from terminating the
Employee prior to the expiration of either the Initial Term or the Option
Term, subject to the payment conditions contained in this
Agreement.
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2
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D.
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Salary. In
consideration of the employment services to be rendered hereunder, the
Company shall initially pay Employee a monthly salary as
follows:
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1)
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Twelve
thousand five hundred dollars ($12,500) per month for the first six (6)
months of employment; and
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2)
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Ten
thousand dollars ($10,000) per month thereafter (“Salary”), payable at the
time and pursuant to the procedures regularly established and as may be
amended by the Company during the course of this Agreement, which unless
changed by the Company shall be bi-weekly. Such compensation is
subject to the usual and required employee payroll deductions, withholding
and reductions. Following the Effective Date of the Agreement,
Employee’s Salary shall be reviewed by the Company on the first
anniversary of the Effective Date (“Interval”). Nothing
contained herein shall obligate the Company to revise Employee’s
salary. Should the Company fail to review and/or revise
Employee’s Salary within thirty (30) days following the conclusion of any
Interval, Employee’s Salary from that concluded Interval shall carry over
and apply to the immediately succeeding
Interval.
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E.
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Benefits.
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1. Accrued
Payment Upon IP Events
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a.
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The
term “Proceeds” shall mean the actual receipt by the Company or any of its
subsidiaries of any consideration (whether in cash or the fair market
value of non-cash consideration) from an IP Event, regardless of whether
Employee is employed by Company at the time of actual
receipt. For purposes of this Agreement, Proceeds shall be the
receipt by the Company or any of its subsidiaries of any gross recovery,
but, only after deduction of all out-of-pocket costs (service fees, expert
fees, deposition costs, etc.) (in cash or the fair market value of
non-cash consideration).
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b.
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The
term “IP Event” shall mean (i) any licensing, sale, transfer, settlement
or other transaction with one or more third parties relating to
intellectual property of the Company or its subsidiaries, or (ii) a
merger, consolidation, share exchange or sale of all or substantially all
of the stock or assets of the Company or any of its subsidiaries (but not
a transaction to take the Company private) only while Employee is employed
with the Company.
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3
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c.
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Employee
shall accrue upon the consummation of any IP Event an amount equal to 1%
of the Proceeds. Employee’s right to receive the Proceeds shall
vest as follows:
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(i)
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At
the end of each thirty (30)-day period after the Effective Date that
Employee remains employed by Company, Employee shall vest in 1/24 of 1% of
Proceeds;
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(ii)
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Employee
will vest in this manner until the maximum right to receive 1% of the
Proceeds (“Maximum Interest”);
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(iii)
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Should
the Company terminate Employee’s employment “For Cause” (as such term is
defined herein below) before the Employee has vested in the Maximum
Interest, Employee shall be entitled to Employee’s vested interest as of
the date of Employee’s termination;
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(iv)
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Should
the Employee voluntarily terminate his own employment before the Employee
has vested in the Maximum Interest, Employee shall be entitled to
Employee’s vested interest as of the date of Employee’s
termination. Notwithstanding the foregoing, if Employee
terminates employment with the Company due to (i) a reduction in the
Employee’s salary greater than 25% or (ii) a relocation of the principal
place of business of the Company where the Employee is actually required
to work at such different location, is more than 25 miles from the
Employee’s now or then current residence, such termination shall not
constitute a voluntary termination;
and
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(v)
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Should
the Employee’s employment terminate for any reason other than “For Cause”,
the death or disability of Employee, or voluntary termination by the
Employee, the Employee shall accelerate vesting and be entitled to the
full Maximum Interest.
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3.
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Employee
shall be entitled to receive his accrued and vested amounts from Sections
E.1 and E.2 of this Agreement by March 15 of the calendar year following
the calendar year of the earlier of the occurrence of Employee’s
termination from employment. If Proceeds or IP Transaction
Proceeds are not received by this deadline, the Company shall make the
Employee’s vested and accrued interest in Proceeds and IP Transaction
Proceeds within one month of actual receipt of such
funds.
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4
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4.
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The
Company shall provide Employee with health insurance benefits through the
Company’s health insurance plan during Employee’s employment with the
Company, unless such insurance is provided through any other employment of
the Employee. If no such plan is in effect at any given time
during that employment, Company shall reimburse Employee for the
reasonable cost of any private health insurance plan located by and
participated in by Employee during such
time.
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5.
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The
Company shall reimburse the Employee for all phone and communications
related expenses, upon presentation of adequate documentation
thereof.
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6.
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The
Company shall reimburse Employee for all ordinary, necessary, and
reasonable expenses incurred by Employee and directly related to
Employee’s performance of Employee’s job responsibilities, upon
presentation of adequate documentation thereof. However, any
single expense in excess of two thousand five hundred dollars ($2,500)
must be approved in advance by the Company’s Board of Directors in order
to qualify for such reimbursement.
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7.
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Employee
shall be entitled to two (2) weeks vacation per year; provided, however,
that in no event shall accrued vacation exceed more than two (2)
weeks.
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8.
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The
Company agrees to indemnify, keep indemnified and hold harmless Employee
(which shall include any legal representatives of such person) to the
fullest extent authorized by the Delaware Law, including, without
limitation, Section 145(f) thereof, and other applicable law as in effect
from time to time, from and against any expenses (including expenses of
investigation and preparation and reasonable fees and disbursements of
counsel, accountants and other experts), judgments, fines, liability,
losses and amounts paid in settlement, actually and reasonably incurred by
Employee in connection with any threatened, pending or completed action,
suit, claim or proceeding (hereinafter, a “proceeding”), whether civil,
criminal, administrative or investigative, by reason of the fact that
Employee is or was a director or officer of the Company, or is or was
serving at the request of the Company as a director, officer, employee,
fiduciary or agent of another Company, partnership, joint venture, trust
or other enterprise, and whether or not the cause of such proceeding
occurred before or after the date of this
Agreement.
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9.
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In
the event the Company terminates Employee Without Cause – Company shall
pay Employee three (3) months of employees then current Monthly Salary
upon termination.
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5
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F.
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Conflict of
Interest. During his employment with Company, Employee
agrees that he: (i) will not engage, directly or indirectly, in any other
business activity (whether or not pursued for pecuniary advantage) which
will be a Conflict of Interest and (ii) will protect and maintain the
Company’s Trade Secrets and Confidential Information. Employee
shall specifically be entitled to maintain employment, accrue consulting
fees, or otherwise be hired by individuals or entities other than the
Company provided such work, consulting or employment is not in direct
competition with the Company. In addition, Employee may own or
operate, in any capacity, any other business, provided such work is not in
direct competition with the Company. No such activities set
forth hereinabove shall interfere to an unreasonable extent with
Employee’s performance of his duties
hereunder.
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III.
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WORK FOR
HIRE
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Employee
agrees that the Company will own and control all worldwide rights in and to the
results, products and proceeds of Employee’s services called for hereunder,
including but not limited to any and all business plans, copyrights, trademarks,
service marks, all intellectual property, ideas, concepts, designs, creations,
formats, drawings, images, digital information, visual creations, audiovisual
creations, or any other materials of any kind, whether finished or not, created,
developed and/or produced by Employee during Employee’s employment with the
Company and in connection with the services performed for Company (herein, the
“Work”) — provided such work is undertaken exclusively for the Company and is in
the scope of the Company’s activities given its current operating
status. The Employee agrees such Work will be constituted as
“Works-Made-for-Hire” for Company within the meaning of U.S. Copyright Law and
other applicable laws.
Accordingly,
Employee agrees that the Company shall be considered the author and the sole and
exclusive owner of the Work and all right, title and interest therein – provided
such work is undertaken exclusively for the Company and is in the scope of the
Company’s activities given its current operating status. If under any
applicable law the fact that the Work is a Work-Made-for-Hire is not effective
to place authorship and ownership of the Work and all rights therein in Company,
then to the fullest extent allowable and for the full term of protection
otherwise accorded to Employee under applicable law, Employee hereby irrevocably
assigns and transfers to Company all worldwide right, title and interest therein
(including the entire copyright and all rental and neighboring rights) and the
exclusive right, throughout the universe and in perpetuity, in all media now
known or hereafter devised, to use and exploit the Work and to assign or license
to others the right to use and exploit the Work – provided such work is
undertaken exclusively for the Company and is in the scope of the Company’s
activities given its current operating status. Employee agrees to
reserve no rights in the Work – provided such work is undertaken exclusively for
the Company and is in the scope of the Company’s activities given its current
operating status. Employee agrees he will sign and provide any
further documents requested by Company to reflect Company’s ownership in the
Work and, in the event of Employee’s failure to deliver the same, Employee
hereby irrevocable appoints the Company as their attorney-in-fact to sign such
worldwide documents on Employee’s behalf in perpetuity – provided such work is
undertaken exclusively for the Company and is in the scope of the Company’s
activities given its current operating status. The appointment of the
Power of Attorney shall be a power coupled with an interest.
6
IV.
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TERMINATION OF
EMPLOYMENT
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A.
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“At
Will.” As set forth herein, Employee is an “at-will”
Employee whose employment with the Company may be unilaterally terminated
by either Party to this Agreement without notice, without cause, and for
any reason.
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B.
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By
Death. Employee’s employment shall terminate
automatically upon Employee’s death. The Company will pay to
Employee’s beneficiaries or estate, as appropriate, the compensation to
which Employee are entitled pursuant to this Agreement through the date of
death.
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C.
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Disability. If
Employee is unable to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous
period of twelve (12) months or more, then, to the extent permitted by
law, Employee’s employment shall terminate and the compensation to which
Employee is entitled pursuant to this Agreement shall be paid up through
the 90th day of incapacity under the Company’s usual payroll practices,
and thereafter the Company’s obligations hereunder shall
terminate. Nothing in this Paragraph shall affect Employee’s
rights under any disability plan in which Employee is a
participant.
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D.
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“For
Cause.” Notwithstanding Employee’s “at-will” status,
Employee may also be terminated by the Company “For Cause.” For purposes
of this Agreement “Cause” means (i) the commission of an act of fraud,
embezzlement or material dishonesty by the Employee that is materially
injurious to the Company and intended to benefit the Employee, as
determined by an expedited arbitration proceeding in accordance with ADR
regulations; (ii) the conviction of, or plea of nolo contendere to a
felony by Employee.
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V.
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REPRESENTATIONS AND
WARRANTIES; ASSIGNMENT
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A.
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Employee
represents and warrants that he has the right, power, legal capacity and
authority to enter into and perform each of the obligations required under
this Agreement, and that no further approval or consent of any person,
board of directors or entities is necessary for him to enter into and
perform each of the obligations under this
Agreement.
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B.
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Employee
represents and warrants that by executing this Agreement Employee will not
cause the violation or breach of any other agreement to which the Employee
may be a party.
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C.
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Employee
represents and warrants that at the time of execution of this Agreement,
he has no existing Conflicts of
Interest.
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D.
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All
representations, warranties, covenants and agreements contained in this
Agreement, or in any instrument, or writing provided for in it, shall
survive the execution of this
Agreement.
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7
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E.
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This
Agreement is personal to the parties and may not be assigned by Employee,
in whole or in part, without the prior written consent of Company, which
consent Company may withhold at its sole and absolute
discretion.
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VI.
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NOTICES
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All
written Notices required pursuant to this Agreement, shall be deemed to have
been given if either hand delivered, or sent by registered or certified mail,
return receipt requested, and addressed to the other party at the address listed
on the signature block of this Agreement. Any Notice sent by
registered or certified mail will be deemed to have been given three (3) days
from the date of mailing or when the other party actually receives such Notice,
which ever occurs first.
VII.
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TRADE SECRETS AND
CONFIDENTIAL INFORMATION
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A.
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Employee
certifies and agrees that at all times, both during and after his
employment by the Company, he has not and will not disclose or reveal to
any person not employed by the Company any Trade Secret(s) or Confidential
Information of or concerning the Company. Employee further
certifies and agrees that he has not and will not use for his own
purposes, other than in the performance of his duties to the Company, any
Trade Secret(s), Confidential Information or Tangible Items (as defined in
this Agreement) of the Company.
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B.
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All
files, records, documents, plans, specifications, manuals, books,
magazines, forms, receipts, outlines, reports, memoranda, notes, studies,
data, calculations, recordings, catalogues, software storage media or
other compilations of information, correspondence and all copies,
abstracts and summaries of the foregoing and all physical items related to
the business of the Company other than a merely personal item, whether of
a public nature or not, and whether prepared by Employee or not
(collectively defined as “Tangible Items”), are and shall remain the
exclusive property of the Company and shall not be removed from the
premises of the Company, except as required in the course of employment by
the Company, without the prior written consent of the Company, and the
same shall be promptly returned to the Company by Employee on the
expiration or termination of his employment by the Company or at any time
prior thereto upon the request of the
Company.
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C.
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Upon
termination of his employment with the Company, Employee agrees to
promptly deliver to the Company all records, documents, contracts,
correspondence, notes, notebooks, papers, files and the contents thereof,
financial statements, bank checks, credit cards, reports, tables, data,
computer software, computer printouts, customer lists, supplier lists,
product lists, purchase orders, receipts, invoices, blank forms, business
cards, stationery, manuals, books, specifications, compilations,
calculations, formulae, all copies of the foregoing and any other
materials which contain any trade secret(s) or confidential information of
the Company.
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8
VIII.
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SOLICITATION OF
CUSTOMERS
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During
the period commencing on the date hereof and ending three (3) years from the
date on which employment under this Agreement is terminated (such period not to
include any period of violation hereof by Employee or period which is required
for litigation to enforce this Section 10 and during which Employee is in
violation hereof), the Employee shall not, directly or indirectly, either for
his own benefit or purposes or for the benefit or purposes of any other person,
solicit, call on, interfere with, accept any business from, attempt to divert or
entice away any person or firm who is a customer of the Company or who was a
customer of the Company within the twelve months preceding the date of
termination or expiration, as may be the case, if such business in any way
involves products or services at that time being offered, developed or
considered by the Company on the date of termination.
IX.
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SOLICITATION OF
EMPLOYEES
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During
the period commencing on the date hereof and ending three (3) year from the date
on which employment under this Agreement is terminated (such period not to
include any period of violation hereof by Employee or period which is required
for litigation to enforce this Section II and during which Employee is in
violation hereof), Employee shall not, directly or indirectly, employ or offer
to employ, call on, solicit, interfere with, attempt to divert or entice away
any employee or independent contractor of the Company (or any person whose
employment or status as an independent contractor has terminated within the
twelve months preceding the date of termination) in any capacity if that person
possesses or has knowledge of any Trade Secrets or Confidential Information of
the Company.
X.
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INJUNCTIVE
RELIEF
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Employee
acknowledges and agrees that it would be difficult to fully compensate the
Company for damages resulting from the breach or threatened breach of the
foregoing provisions and, accordingly, that the Company shall be entitled to
petition a court for temporary and injunctive relief, including temporary
restraining orders, preliminary injunctions and permanent injunctions, to
enforce such provisions upon proving that it has suffered or that there is a
substantial probability that it will suffer irreparable harm and without the
necessity of posting any bond or other undertaking in connection
therewith. This provision with respect to injunctive relief shall
not, however, diminish the Company’s right to claim and recover
damages.
XI.
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ARBITRATION.
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Employee
and the Company jointly agree that any and all disputes arising under or
relating to the performance of the services contracted for under this Agreement,
including but not limited to claims arising from or related to Employee’s
employment or the termination of Employee’s employment, shall be submitted to
confidential binding arbitration before Judicial ADR Services,
Inc. (“ADR”) in Los Angeles, or any successor thereto then
prevailing. The law of the State of California will
apply. Such arbitration shall be final and binding upon the parties
and shall be the sole and exclusive remedy of the parties with respect to any
dispute arising out of, relating to or resulting from the interpretation of the
terms of this Agreement or breach or termination thereof. The costs
of such arbitration will be apportioned equally between the parties; provided,
however, that the arbitrator shall have the right to allocate costs in his or
her sole discretion. Either party, pursuant to the order of the
arbitrator, may perform discovery.
9
If
Employee refuses to submit to Arbitration after agreeing to this provision,
Employee may be compelled to Arbitrate under the authority of the California
Code of Civil Procedure. Nothing in this provision is intended to
waive Employee’s right to discovery or damages available under applicable
federal and state laws, but only in the arbitration
tribunal. Employee and Company further understand that arbitration
represents an alternative to a jury trial and that this constitutes a waiver of
the parties’ right to a jury trial with respect to any matters or controversies
which may arise between them concerning this Agreement or Employee’s employment
at the Company.
XII.
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MISCELLANEOUS.
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A.
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Headings,
sections and subsection headings are not to be considered part of this
Agreement and are included solely for convenience and are not intended to
modify or explain or to be a full or accurate description of the contents
thereof.
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B.
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The
parties hereto may amend or modify this Agreement in such manner as may be
agreed upon only by a written instrument executed by Employee and a person
duly authorized to execute such agreement by the Company’s Board of
Directors.
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C.
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This
Agreement may be executed simultaneously in one or more counterparts each
of which shall be deemed an original, but all of which together shall
constitute one and the same
instrument.
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D.
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All
of the terms and provisions of this Agreement shall be binding upon each
of the parties hereto and shall inure to the benefit of the parties
hereto, their heirs, executors, administrators, personal representatives,
successors and assigns.
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E.
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The
parties agree that this Agreement has been executed and delivered in the
State of California and shall be construed, enforced and governed by the
laws thereof.
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F.
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In
the event it shall become necessary for any of the parties hereto to
institute legal proceedings to enforce any of the terms and conditions of
this Agreement, the prevailing party or parties shall pay to the
non-prevailing party or parties, all of their court costs and reasonable
attorney’s fees.
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G.
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This
Agreement completely supersedes all prior dealings with the parties with
respect to its provisions, whether oral or written. This
Agreement will not be effective until signed by the Employee and a person
duly authorized to execute such Agreement by the Company’s Board of
Directors. The Parties agree and acknowledge that each has
reviewed this Agreement and the normal rule of construction that
agreements are to be construed against the drafting party shall not apply
to this Agreement since the Parties have mutually negotiated and drafted
this Agreement.
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10
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H.
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Each
of the parties hereto shall execute any and all other documents or
instruments necessary or mutually desirable in order to carry out the
provisions of this Agreement.
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I.
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No
provision of this Agreement is to be interpreted for or against any party
hereto because any such party or any such party’s legal representative
drafted such provision.
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J.
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Nothing
contained in this Agreement shall be interpreted or construed to create a
partnership or a joint venture relationship between the
parties. The only relationship between the parties is one of a
Company with an Employee.
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K.
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If
any provision of this Agreement is held to be illegal, invalid or
unenforceable under present or future laws effective during the term of
this Agreement, such provision(s) shall be fully severable, and the
remainder of this Agreement shall be deemed valid and
enforceable. In lieu thereof, there shall be added a provision
as similar in terms to such illegal, invalid or unenforceable provision as
may be possible and be legal, valid and
enforceable.
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XIII.
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INDEPENDENT
COUNSEL.
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Each
Party warrants and represents that it has received and has been represented by
independent legal counsel in connection with this Agreement and further warrants
and represents that it has entered into this Agreement based upon its
discussions and consultations with such counsel. All Parties other
than the Company further warrant and represent that they have sought and
obtained the advice of independent legal counsel of their own choice concerning
the Agreement and have entered into this Agreement solely upon their reliance on
such consultation with their respective independent legal counsel, including
examining any and all issues dealing with the execution of this
Agreement.
XIV.
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409A SAVINGS
CLAUSE.
|
The
Parties intend that payments or benefits payable under this Agreement not be
subject to the additional tax imposed pursuant to Section 409A of the Internal
Revenue Code (the “Code”), and the provisions of this Agreement shall be
construed and administered in accordance with such intent. To the
extent such potential payments or benefits could become subject to Code section
409A, the Parties shall cooperate to amend this Agreement with the goal of
giving Employee the economic benefits described herein in a manner that does not
result in such tax being imposed. In the event that any payment to
the Employee under this Agreement is not made within the time prescribed in this
Agreement and is subject to any excise tax under Section 409(a) of the Code or
any similar excise tax (an “Excise Tax”), the Company shall make any additional
payments (“Gross Up Payments”) necessary to provide the Employee with the
equivalent after tax payment he would have received had the original payment not
been subject to an Excise Tax. Any Gross Up Payments will be made in
the same taxable year in which the Excise Tax is due.
11
XV.
|
Admission to
California State Bar
|
Employee
is a Member of the California State Bar. Company hereby acknowledges
and agrees that Employee’s work for the Company shall be limited exclusively to
business judgments and business decisions, and that regardless of the nature of
the work completed by Employee, Employee will not be acting for the company in
the capacity as a legal advisor. Any and all advice given the
Company, it officers, directors and or related third parties, shall not be
considered legal advice. The company waives all rights and
prospective causes of action against employee to proceed against Employee for
any and all claims for malpractice and or any and all causes of action related
to legal malpractice and/or giving legal advice. Except that,
Employee, at his discretion, and, after written notice to the Company, may serve
as co-counsel on any litigation matter to which the Company is a
party.
12
IN
WITNESS WHEREOF, the parties hereto have caused this Employment Agreement to be
executed as of the date and year first set forth above, at San Francisco,
California.
Address
For Notice Purposes:
|
“COMPANY”
|
4538
S. 140th
Street
Omaha,
Nebraska 68137
with
a copy to:
Novian
& Novian LLP
1801
Century Park East, Suite 1201
Los
Angeles, California 90067
Attention: Farhad
Novian, Esq.
|
GABRIEL
TECHNOLOGIES, INC., a Delaware corporation
/s/ Jack
Manning
By: Jack
Manning
Its: Authorized
Signatory
|
/s/ John
Hall
By: John
Hall
Its: Authorized
Signatory
|
|
Address
For Notice Purposes:
273
Green street no. 6
San
Francisco, California 94133
|
“EMPLOYEE”
/s/ GEORGE
TINGO
GEORGE
TINGO, an individual
|
13