EMPLOYMENT AGREEMENT (President, Chief Executive Officer and Chief Financial Officer)
EX
10.6
(President,
Chief Executive Officer and Chief Financial Officer)
This
EMPLOYMENT AGREEMENT is dated as of this 21st
day of October, 2008 (“Date of Commencement”).between Xxxxxxxx Weisdorn (the “Executive”) and
FORCE FUELS, INC., a Nevada corporation (the
“Company”) (collectively the “Parties”).
WHEREAS,
the Company wishes to employ the Executive and the Executive desires to accept
such employment, upon the terms and conditions stated herein;
NOW,
THEREFORE, in consideration of the promises exchanged by the Parties, it is
agreed:
1.
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Employment. The
Company hereby agrees to employ the Executive, and the Executive hereby
accepts such employment, upon the terms and conditions set forth
herein.
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2.
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Duties and
Responsibilities of the Executive. During the term of
his employment, the Executive shall execute his duties and
responsibilities as follows:
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a.
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Executive
shall be employed with the titles and positions of President, Chief
Executive Officer and Chief Financial Officer and shall be responsible for
the general oversight of the
Company.
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b.
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The
Executive shall devote his best efforts, services and attention to the
advancement of the Company’s business and interests. The
Executive shall devote his time, attention and energies to the affairs of
the Company.
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c.
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The
Executive shall report to, and be subject to the supervision of, the Board
of Directors of the Company. The Executive shall diligently and
faithfully carry out the policies, programs and directions of the Board of
Directors of the Company. The Executive shall execute and
discharge such duties and responsibilities as may be assigned to the
Executive from time to time by the Board of Directors of the
Company.
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d.
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The
Executive will have a position on the Board of Directors for the duration
of this agreement.
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e.
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The
Executive shall fully cooperate with other officers and executives of the
Company.
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f.
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Subject
to the provisions of Section 2.c, the Executive
shall:
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i.
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Be
responsible for the organization, implementation and operation of the
Company’s activities as determined from time to time by the Board of
Directors;
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ii.
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Be
responsible for employing and supervising other employees of the Company,
subject to the policies and procedures and direction of the Board of
Directors;
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iii.
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Be
responsible for recommending to the Board for approval all contracts
between the Company and other entities for the provision of goods and
services;
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iv.
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Generally
perform the usual duties and responsibilities of a Chairman and Chief
Operating Officer of the Company.
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3.
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Third Party
Agreements. The Executive will be engaged to perform
services for ICE Conversions, Inc. (“ICE”), and the Company. The
validity of any transaction, agreement or payment involving the Company
and the Executive shall not be affected by reason of the relationship
between them or the approval of said transaction, agreement or
payment. The Executive may have interests in businesses other
than the Company business. The Company shall not have the right to
the income or proceeds derived from such other business interests and,
even if they are competitive with the Company business, such business
interests shall not be deemed wrongful or
improper.
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4.
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Compensation. In
consideration of the services rendered by the Executive, the Company
agrees to compensate the Executive as
follows:
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a.
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Base
Compensation. The Executive’s monthly base compensation
initially shall be Twenty Thousand Dollars ($20,000) and shall be payable
in accordance with the salary policies of the Company in effect from time
to time but no less frequently than
monthly.
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b.
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Salary
Increases. The Company shall annually review the
Executive’s Performance and compensation. The Executives base
compensation will be increased annually by not less than five percent
(5%). Executive’s annual base compensation shall not be reduced below the
base compensation as from time to time adjusted, unless agreed upon in
writing.
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c.
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Incentive
Bonuses. The Board of Directors shall grant Executive
such annual bonuses as the Board of Directors, in its discretion, may
determine to be appropriate in light of the Company’s performance and the
Executive’s performance and contribution to the Company’s
success.
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d.
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Automobile
Allowance. The Executive shall receive an automobile
allowance not to exceed $750 monthly for the purpose of leasing and
maintaining insurance on an automobile of the Executive’s choice. If the
Executive uses his/her own vehicle instead of leasing, a flat rate of
$500.00 per month shall be paid to the Executive as an automobile
allowance.
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e.
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Term Life
Insurance. The Company shall purchase and provide with
term life insurance coverage after six months of employment, in the amount
of $1,000,000: the beneficiary, or beneficiaries, shall be named by the
Executive. The Executive agrees to permit the Company to purchase
“Key man” term life insurance coverage for the benefit of the Company at
its sole discretion.
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f.
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Vacation and Medical
Leave. The Executive shall have four (4) weeks of
vacation at times mutually convenient to Executive and the Company.
Accrued vacation may not be carried over, but must be used in the
annual period in which it accrues. Continuation of compensation
during periods of absence for medical reasons will be determined by
Company policy.
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g.
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Withholdings. The
Executive’s salary and all other payments and benefits shall be subject to
all deductions and withholdings mandated by federal, state and local laws
and regulations.
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h.
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Expenses. The
Executive shall be reimbursed for all necessary and reasonable expenses
incurred by him in the execution of his duties and responsibilities and in
accordance with policies approved by the Board or
Directors.
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i.
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Executive
shall submit to Company for review any proposed scientific and technical
articles and the text of any public speeches relating to work done for
Company before they are released or delivered. Company has the
right to disapprove and prohibit, or delete any parts of, such articles or
speeches that might disclose Company's Trade Secrets or Confidential
Information or otherwise be contrary to Company's business
interests.
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5.
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Term of Agreement.
Unless terminated as provided in Paragraph 6(c)
“Termination for Cause” hereof, the Term of this Employment Agreement
shall continue for Three (3) years from October 21, 2008 to October 20,
2011, and shall be renewable by the mutual consent of the Parties. If
written notice of non-renewal is not given by either Executive or Company
not less than three (3) months before the expiration of the term of this
Employment Agreement (or any renewal term) the Employment Agreement shall
be automatically renewed, from time to time, for subsequent three (3) year
terms.
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6.
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Termination of
Employment Agreement.
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a.
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Notice and Severance
Pay. Either party may terminate this Employment
Agreement at any time upon sixty (60) days written notice provided
that,
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(i)
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If
the Company should terminate such employment other than pursuant to
subparagraph 6(c) “Termination for Cause”, the Executive shall be entitled
to “Severance Pay” an amount equal
to:
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(a)
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The
full base Compensation that he was receiving immediately before his
termination for a Term of twelve (12) months according to the Employment
Agreement
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(b)
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Continuation
of Benefits afforded regular employees of the Company for the severance
pay period as defined in 6(a)
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A Bonus
each year of the severance pay period (pro rated
for partial years) equal to the bonus received by the
Executive for the year preceding the year in which termination
occurs.
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(ii)
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If
Executive is terminated following a “Change In Control” as set forth in
Paragraph 6(a), the Company shall pay Executive Severance
Pay equal to two (2) times the Base Compensation that he is
receiving immediately before his termination, and agrees to release all
stock agreed to in section “G” Equity, in
full.
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b.
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Change in
Control means the earlier
of:
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(i)
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The
date on which any person or entity, or persons or entities acting in
concert, shall acquire the beneficial ownership, as defined by the Board
of Directors in its sole discretion, of Shares or other securities having
more than sixty percent (60%) of the Voting Power then outstanding other
than a transfer by reason of death to a deceased Shareholder’s
representatives or beneficiaries.
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(ii)
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The
Shareholders of the Corporation approve the merger or consolidation of the
Corporation with or into any other corporation, other than a merger or
consolidation which would result in the voting securities of the
Corporation outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least 50% of the Voting Power of
the Corporation or such surviving entity outstanding immediately after
such merger or consolidation:
or
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(iii)
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The
Shareholders of the Corporation approve a plan of complete liquidation of
the Corporation or an agreement for the sale or disposition by the
Corporation of all or substantially all of the Corporation’s
assets.
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b.
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Termination for
Cause. Notwithstanding the preceding, the Company may
terminate the Executive’s employment for fraud, gross dishonesty, and non
performance, acts of criminal misconduct, unwilling to follow direct
requests from the Board of Directors or willful and material violation of
the Employment Agreement following reasonable written
warning.
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c.
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Death.
This Employment Agreement shall terminate automatically upon the death of
the Executive.
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d.
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Result of
Termination. Upon termination of Executive’s employment
pursuant to this Section, Employer shall pay to Executive’s estate, on the
Termination Date, a lump sum payment of an amount equal to (i) all accrued
and unused vacation and sick pay payable to Executive by Employer with
respect to serviced rendered by Executive to Employer through the
Termination Date; and, (ii) if the Termination Date occurs during the
Extended Term, an amount equal to twelve (12) months salary based upon the
then existing salary of Executive, payable in the same manner as salary
would have been paid to Executive had he continued to work for Employer
hereunder. In addition to the foregoing, and notwithstanding the
provisions of any other agreement to the contrary, Employer shall continue
to provide for the benefit of Executive’s family the medical benefits for
twelve (12) months following the Termination
Date
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e.
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Disability. This
Employment Agreement shall terminate upon the Disability of the Executive.
“Disability” refers to the Executive being unable to perform substantially
all the duties of his employment, as determined by two physicians who are
not affiliates of the Company or the Executive, one of whom is selected by
the Company and one of whom is selected by the
Executive.
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f.
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Termination for Good
Reason: If Executive terminates his employment for “Good
Reason”. The Executive shall be entitled to the “Severance Pay” provided
in subparagraph 6a (ii).
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Termination
of Employment for “Good Reason” shall include any of the following, unless the
Executive shall have expressly consented in writing to:
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(i)
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The
assignment of duties inconsistent with or a substantial alteration in the
nature of, the Executives
responsibilities;
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(ii)
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A
material reduction in compensation or
benefits;
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(iii)
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A
relocation of the Executive outside the metropolitan of his current
residence;
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(iv)
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Any
material breach by the Company of any provision of this
Agreement;
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(v)
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Any
failure by the Company to obtain the assumption and performance of this
Agreement by any successor (by merger or otherwise). Notwithstanding the
foregoing, the aggregate amount of Severance Compensation paid to the
Executive hereunder shall not include any amount that the Company is
prohibited from deducting for federal income tax purposes by virtue of
Section 280G of the Internal Revenue Code or any successor
plan.
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7.
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Ownership of
Developments and Indemnification. The Parties agree that
the Executive’s primary fiduciary duty is to act in the best interests of
the Joint Venture, which the Company agrees is anticipated to result in
mutual benefit to the Companies shareholders. Therefore, the
Company shall and does hereby indemnify and hold harmless the Executive
and his successors and assigns (hereinafter, the “Indemnified Party”) from
and against any and all losses, claims, demands, costs, damages,
liabilities, joint and several, expenses of any nature (including
reasonable attorneys' fees and disbursements), judgments, fines,
settlements and other amounts arising from any and all claims, demands,
actions, suits or proceedings, whether civil, criminal, administrative or
investigative, in which the Indemnified Party was involved or may be
involved, or threatened to be involved, as a party or otherwise, arising
out of or incidental to, Executive’s involvement with, shareholder status
in, or performance of duties for ICE, DSE or the Joint
Venture. Said indemnity shall not apply to any final
adjudication of willful misconduct or the criminal conviction of the
Indemnified Party. This Section shall survive the dissolution of the Joint
Venture and the termination of this
Agreement.
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a.
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Ownership of Work
Product. Company shall own all Work
Product. Executive acknowledges that all Work Product is and
shall be deemed work for hire by Executive as an employee or Consultant of
Company and owned by the Company. To further evidence Company’s ownership
rights and independent of this Agreement, Executive shall execute and
deliver to Company the Employee Intellectual Property Acknowledgement,
Assignment and Agreement attached hereto as Exhibit A. To the
extent any Work Product is not, by operation of law, deemed work made for
hire by Executive for Company (or if ownership of all right, title and
interest of the intellectual property rights therein shall not otherwise
vest exclusively in Company), Executive agrees to assign all such Work
Product to Company as set forth in the Employee Intellectual Property
Acknowledgement, Assignment and
Agreement.
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b.
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Clearance Procedure
for Developments Not Claimed by Company. In the event
Executive wishes to create or develop, on his own time and with his own
resources, anything that may be considered Work Product, but Executive
believes he should or desires to be entitled to the personal benefit of
such development or invention, Executive shall observe the following
clearance procedure set forth in the Employee Intellectual Property
Acknowledgement, Assignment and Agreement attached hereto as Exhibit
A.
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8.
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Confidentiality.
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a.
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Consequences of
Entrustment with Sensitive Information. Executive
recognizes that his position with Company requires considerable
responsibility and trust. Relying on Executive’s responsibilities
hereunder and undivided loyalty, Company expects to entrust Executive with
highly sensitive confidential, restricted, and proprietary information
involving Trade Secrets and other intellectual
property. Executive should recognize that it could prove very
difficult to isolate these Trade Secrets from business activities that
Executive might consider pursuing after termination of employment, and in
some instances, Executive may not be able to compete with Company in
certain ways because of the risk that Company's Trade Secrets might be
compromised. Executive is responsible for protecting and
preserving Company's proprietary rights for use only for Company's
benefit, and these responsibilities may impose unavoidable limitations on
Executive’s ability to pursue some kinds of business opportunities that
might interest Executive during or after his
employment.
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b.
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Restrictions on Use
and Disclosure of Trade Secrets. Executive agrees not to
use or disclose any Trade Secrets of Company during his employment and for
so long afterwards as the pertinent information or data remain Trade
Secrets, whether or not the Trade Secrets are in written or tangible form,
except as required to perform any duties for
Company.
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c.
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Screening of Public
Releases of Information. In addition, and without any
intention of limiting Executive’s other obligations under this Agreement
in any way, Executive shall not, during his employment, reveal any
nonpublic information concerning the technology pertaining to the
proprietary products and manufacturing processes of Company (particularly
technology under current development or improvement), unless Executive has
obtained approval from Company in advance. In that connection,
Executive shall submit to Company for review any proposed scientific and
technical articles and the text of any public speeches relating to work
done for Company before they are released or delivered. Company
has the right to disapprove and prohibit, or delete any parts of, such
articles or speeches that might disclose Company's Trade Secrets or
Confidential Information or otherwise be contrary to Company's business
interests.
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9.
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Return of
Materials. Upon the request of Company and, in any
event, upon the termination of employment hereunder, Executive must return
to Company and leave at its disposal all memoranda, notes, records,
drawings, manuals, computer programs, documentation, diskettes, computer
tapes, and other documents or media pertaining to the business of Company
or Executive’s specific duties for Company (including all copies of such
materials). Executive must also return to Company and leave at
its disposal all materials involving any Trade Secrets of
Company. This obligation applies to all materials made or
compiled by Executive, as well as to all materials furnished to Executive
by anyone else in connection with employment
hereunder.
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10.
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Benefit. This
Agreement shall inure to the benefit of and shall be binding upon the
Parties hereto and their respective successors and assigns but the
obligations of the Executive hereunder may not be assigned by the
Executive and are personal to her. The Executive agrees that
the Company may arrange for his employment through an employee-leasing
firm provided that his rights hereunder are not materially
reduced.
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11.
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Entire
Agreement. This instrument contains the entire agreement
of the Parties and hereby terminates the previous Consulting Agreement
entered into and effective May 12, 2008. This Agreement may not
be changed orally but only by an agreement in writing signed by the party
against whom enforcement of any waiver, change, modification, extension,
or discharge is sought.
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12.
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Governing
Law. This Agreement shall be governed by and interpreted
in accordance with the substantive laws of the State of
California.
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13.
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Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall
constitute an original.
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IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
written above.
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/s/ Xxxxxxxx Weisdorn | |
By:
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Xxxxxxxx Weisdorn, (the “Executive”) | ||
FORCE FUELS, INC. | |||
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/s/ Xxxxxx X. Xxxxxxxxx | |
By: | Xxxxxx X. Xxxxxxxxx, | ||
Chairman,
President, Chief Executive Officer and
Chief
Financial Officer
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