EXECUTIVE EMPLOYMENT AGREEMENT
Exhibit
10.8
This
Executive Employment Agreement
("Agreement") is made this 29 day of June, 2006 by and
between Sun Energy Solar, Inc., a
Delaware corporation with offices located at 0000 Xxxxxxxxxx Xx., Xxxxx 000,
Xxxxxxxx, Xxxxxxx, 00000 (the "Company") and Xxxx L-Xxxxx, residing at 000
XxxXxxx Xxxxx, Xxxxxx, Xxxxxxx 00000 (“Executive).
WHEREAS,
the Company has created certain
intellectual property ('"Intellectual Property"), is pursuing patents for some
of such Intellectual Property and is developing products ("Products") based
on
the Intellectual Property (the "Business Venture");
WHEREAS,
the Company desires to engage
Executive as its Chief Executive Officer;
NOW
THEREFORE, in consideration of the
mutual covenants hereinafter contained, the parties hereto agree as
follows:
AGREEMENT:
1.
Employment;
Duties.
The Company shall employ
Executive as Chief Executive Officer and Executive accepts such employment
under
the terms and conditions set forth in this Agreement. Executive's duties shall
be consistent with those of a Chief Executive as defined from time to time
by the
Cmpany's Board of Directors (the
"Board").
2.
Full-Time
Best
Efforts.
(a)
Time
and Effort.
Executive shall devote
Executive full professional time and attention to 'the performance of
Executive's obligations under this Agreement, and shall at all times faithfully,
industriously and to the best of Executive's ability, experience and talent
perform all of Executive's obligations hereunder. So long as this Agreement
is
in effect, Executive shall not be employed or engaged by any other person or
firm other than the Company unless otherwise authorized in writing by the
Board.
(b)
Performance
Standards; Underperformance. Within 30 days after
the Effective Date,
the Company, through its Board of Directors, shall establish performance
expectations and standards, which shall (i) be reasonably acceptable to
Executive, (ii) may change from time to time as the needs of the Company change)
and (iii) shall serve as a basis to evaluate Executive’s performance from time
to time. Within six months following the Effective Date, and at least annually
thereafter, the Chief Executive, President and Board of Directors shall meet
in
order for the Chief Executive to provide a formal evaluation of Executive’s
performance. “Underperformance” shall mean Executive's failure to meet some or
all of the then-current performance expectations and standards, and can be
the
basis for a change in job description, salary and benefits, or termination
of
Executive's employment under this Agreement.
3.
Term.
The term of this Agreement
shall begin on the Effective Date and shall end on the first anniversary of
the
Effective Date (the '"Initial Term") unless terminated prior to that date as
provided herein. Unless 60 days’ advance written notice is given by one party to
the other regarding termination of Executive’s employment hereunder, at the
expiration of the Initial Term, and any renewal
term, the term of this Agreement
shall automatically extend for an additional one year.
4.
Compensation
and
Benefits.
The Company shall pay
compensation to Executive consisting of an annual base salary, bonuses and
other, benefits as described in this Agreement. In addition to the financial
compensation and benefits set forth below, Executive shall be reimbursed for
any
approved business-related expenses and shall receive vacation, sick leave,
and
other time off as is customary and usual for executives of Executive's status
ill the Company.
(a)
Base
Salary.
Executive's annual base
salary as of the Effective Date is 2,000,000 shares of restricted common stock.
Executive's base salary shall be reviewed annually in conjunction with
Executive's annual performance review and may be adjusted as appropriate in
light of Executive's performance. Executive's annual base salary shall be paid
in a manner so as not to violate Section 16(b) short swing profit rules
resulting in payment back to the Company, and payment shall not be made until
year of service has been completed.
(b)
Incentive
Compensation. The Company
shall pay Executive the following as Incentive Compensation, in addition to
Base
Salary:
For
each year of service during the Term
of this Agreement, beginning on June 29th,
2007,including extensions,
Executive shall be entitled to receive two million (2,000,000) shares of
restricted common stock of the Company.
(c)
Benefits.
Executive shall be entitled
to participate in such insurance, disability, medical, dental, pension, profit
sharing and retirement plans and other programs as may be made generally
available from time to time by the Company for the benefit of executives of
Executive's level or its employees generally (the
"Benefits").
5.
Documents and
Materials. Executive shall
not (except in the performance of Executive’s duties in the ordinary course of
business for which Executive is employed by the Company) at any time
or in any manner make or cause to
be made any copies, or other reproductions or recordings or any abstracts or
summaries of any reports, studies, memoranda, correspondence, manuals, records,
plans or other written, printed, computerized or otherwise recorded materials
of
any kind or nature whatsoever belonging to or in the possession of the Company
or any of its Affiliates. Immediately upon the termination of Executive's
employment with the Company or at any time upon the request of the Company,
Executive shall surrender all such material to the Company and execute a
document acknowledging that Executive has complied with the provisions of this
Agreement.
6.
Proprietary Information.
Executive shall not at any time, whether during or after the term of
this
Agreement, use for Executive's own benefit or purposes or for the benefit or
purposes of any other person or entity, or disclose (except in the performance
of Executive's duties in the ordinary course of business for which Executive
is
employed by the Company) in any manner to any person or any entity, any
Proprietary Information. As used in this agreement, Proprietary Information
shall mean trade secrets, information) data, know how or knowledge (including,
but not limited to, that relating to service techniques, purchasing and sales
organization and methods, inventories) client lists, market development and
expansion plans, personnel training and development programs and client and
supplier relationships)) technology, developments, designs, techniques,
inventions (whether or not patentable or reduced to practice),
devices, or procedures, whether or not conceived of, created or developed,
and/or first reduced to practice solely by Executive or jointly by Executive
and/or Company its employees, subcontractors or agents or any other Discoveries
(as defined in Section 8) belonging to or relating to the affairs of the Company
or any of its Affiliates or to the clients of the Company or any of its
Affiliates; provided, however, that this Section 6 shall not apply to any trade
secret, information, data, know how Discoveries or knowledge that is
or
becomes generally available to the public through no fault or action of
Executive.
7.
Customers
and
Vendors. In furtherance of
and not in limitation of Section 6, Executive acknowledges that the lists of
the
Company's and its Affiliates' customers and vendors as they may exist from
time
to time constitute a valuable and unique asset of the Company, and Executive
shall not, during or after the term of Executive's employment, disclose such
lists or any part there of to any person or entity for any reason whatsoever,
nor shall Executive use such customer or vendor lists for Executive's own
benefit or purposes or for the benefit or purposes of any business with whom
Executive may become associated.
8.
Discoveries.
Any and all inventions)
discoveries, improvements, designs, methods, systems, developments, know how,
ideas, suggestions, devices, trade secrets and processes (collectively,
"Discoveries"), whether patentable or not, which are discovered, disclosed
to or
otherwise obtained by Executive during Executive’s employment with the Company,
are confidential, proprietary information and are the sole and absolute property
of the Company. Executive shall immediately disclose and hereby assigns to
the
Company all such Discoveries and shall assist the Company in making any
application in the United States and in foreign jurisdictions for patents of
any kind
with respect thereto. Whenever
requested to do so by the Company, Executive shall execute any and all
applications, assignments, or other instruments that the Company may deem
necessary to protect the Company's interest therein. Notwithstanding the fact
that the Company may request additional assignment and assistance in
applications, the assignments made in this Section 8 are adequate to cause
an
assignment of Executive's interesting Discoveries.
9.
Works for Hire.
All works and writings
of a
professional nature that are produced by Executive during Executive's employment
with the Company constitute works made for hire and are the sole and absolute
property of the Company. Executive grants the Company the exclusive right to
copyright all such works and writings in the United States and in foreign
jurisdictions. To the extent any such works or writings are deemed to not be
works for hire, Executive hereby assigns all of interests therein to the Company
or its nominee. Whenever requested to do so by the Company, Executive shall
execute any and
all applications, assignments, or
other instruments that the Company may deem necessary to protect the Company's
interest therein. Notwithstanding the fact that the Company may request
additional assignments and assistances in applications, the assignments made
in
this Section 9 are deemed to be adequate to cause an assignment of Executive's
interest in works or writings.
10.
Non-Disclosure
Agreement. The parties
acknowledge entering into a separate nondisclosure agreement relating to
the Company’s proprietary information, attached as Exhibit A (Non-Disclosure
Agreement). The terms of the Non-Disclosure Agreement are incorporated herein
by
this reference. In the event of a conflict between the Non-Disclosure Agreement
and this Agreement, the terms providing greater protection to the Company and
its proprietary information shall be determinative.
11.
Non-Competition.
(a)
Corporate
Relationship. Executive
acknowledges (i) that Executive's employment as a member of the Company's
executive management team creates a relationship of confidence and trust between
Executive and the Company with respect to confidential and proprietary
information applicable to the business of the Company, its Affiliates and its
clients, and (ii) the highly competitive nature of the business of the Company.
Accordingly, the Company and Executive agree that the restrictions contained
in
this Section 11 are reasonable and necessary for the protection of the immediate
interests of the Company and that any violation of these restrictions would
cause substantial injury to the Company.
(b)
Competitive
Business
Defined. For purposes of
this Agreement, the term "Competitive Business" means business which is similar
to or competitive with the business of the Company with respect to which
Executive has had direct responsibility.
(c)
Existing
Client
Defined. For purposes of
this Agreement, the term "Existing Client” means a client for whom the Company
or any of its Affiliates is performing services or marketing products as of
the date of the termination of Executive's employment with the Company or for
whom the Company or any of its Affiliates performed services or marketed
products within the two year period immediately preceding the termination
of Executive's employment with the Company.
(d)
Noncompetition.
During Executive’s
employment with the Company and for a period of one (1) year
following the termination of
Executive's employment with the Company for any reason (other than termination
by Executive for Good Reason during the first twelve (12) months of Executive's
employment), Executive shall not:
i.
own, manage, operate, control, have
any financial interest in, or lend Executive’s name to any person or entity
engaged in, a Competitive Business or cause others to Or assist others in
engaging in any Competitive Business in the foregoing
manner;
ii.
employ or otherwise engage, or
attempt to employ or otherwise engage, in or on behalf of Executive or any
Competitive Business, any person who is employed or engaged as an employee,
consultant, agent or representative of the Company or any of its Affiliates
as
of the date of Executive's termination or at time during the one-year period
following such termination; or
iii.
solicit
directly or indirectly on behalf
of Executive or any Competitive Business, the customer business or account
of
any Existing Client.
(e)
Specific
Enforcement. The foregoing
covenants shall be specifically enforceable; provided, however, that the
covenants shall not be construed to prohibit ownership of not more than 5%
of
the equity of any publicly held entity engaged in direct competition with the
Company, so long as the Executive is not otherwise engaged with such entity
in
any of the other activities specified in the foregoing
clauses.
(f)
Severability.
If any court shall
determine that any provision of this Section 11 is unreasonable arbitrary or
against public policy, such covenant will be considered to be divisible with
respect to scope, time, and geographic area, and such lesser scope, time, or
geographic area) or all of them, as a court of competent jurisdiction may
determine to be reasonable, not arbitrary, and not against public policy, will
be effective, binding, and enforceable against Executive.
(g)
Employability.
Executive acknowledges
(i)
that Executive has sufficient abilities and talents to be able to obtain, upon
the termination of Executive's employment, comparable employment from another
business while fully honoring and complying with the above covenants concerning
confidential information and contacts with the Company’s or any of its
Affiliates' customers or employees, and (ii) the importance to the Company
and
its Affiliates of the above covenants. Accordingly, for a period of one (1)
year
following the termination of Executive's employment with the Company and upon
the Company's reasonable request of Executive, Executive shall advise the
Company of the identity of Executive's new employer and shall provide a general
description in reasonable detail, of Executive’s new duties and responsibilities
sufficient to inform the Company of its need to request a court order to enforce
the above covenants.
(h)
Remedies.
The parties acknowledge
that the damages sustained by the Company or its Affiliates as a result of
a
breach of the agreements contained herein will subject the Company or its
Affiliates to immediate, irreparable harm and damage) the amount of which,
although substantial, cannot be reasonably ascertained, and that recovery of
damages at law will not be an adequate remedy. Executive therefore agrees that
the Company and its Affiliates, in addition to any other remedy they may have
under this Agreement or at law, shall be entitled to injunctive and other
equitable relief to prevent or curtail any breach of any provision of this
Agreement. If an action is instituted to enforce this Agreement or any of the
terms and conditions hereof, including, but not limited to, suit for preliminary
injunction, the prevailing party shall be entitled to costs and reasonable
attorneys' fees. Executive waives any right to the posting of a bond in the
event of an issuance of a temporary restraining order) preliminary injunction
or
permanent injunction upon the issuance of said order by a court of competent
jurisdiction.
12.
Disability. The Company
may terminate this Agreement upon written notice to Executive if Executive
is
physically or mentally incapacitated and unable to perform Executive’s duties
under this Agreement for a period of (i) any 180 days out of any 360 days,
if
the Common Stock of the Company is not then publicly traded, or (ii) 90 out
of
any 180 days if the Common Stock of the Company is then publicly traded. If
at
any time a question arises as to the incapacity of Executive, then the Company
shall promptly employ one physician who is a member of the American Medical
Association and who is reasonably acceptable to Executive to examine Executive
and determine if Executive's physical or mental condition is such as to render
Executive unable to perform Executive's duties under this Agreement. The
decision of the physician shall be certified in writing to the Company, shall
be
sent by the Company to Executive or Executive's representative and shall be
conclusive for purposes of this Agreement. Any compensation payments payable
to
Executive hereunder shall be reduced by the amount of any disability payments
Executive receives as a result of disability policies on which the Company
has
paid the premiums.
13.
Death During Employment.
This Agreement shall terminate upon Executive’s death, and the Company
shall pay a death benefit equal to Executive’s base monthly salary for the
balance of the month of Executive's death and for three months following
Executive's death. Such amounts shall be paid to the beneficiary named in
writing by Executive, or if none, to Executive’s surviving spouse, or if none,
to the executors and administrators of Executive's estate and shall be paid
within 60 days after Executive's death.
14.
Termination for Other Than for
Disability or Death.
(a)
By
the Corporation.
The Company may terminate
Executive's employment under this Agreement prior to the expiration of the
Initial Term or any renewal term as follows:
(i).
immediately
upon the showing of Cause.
For purposes of this Agreement “Cause” shall mean (a) Executive's breach of this
Agreement, if the Executive has been given a reasonable opportunity to cure
his
breach (which reasonable opportunity must be granted during the fourteen
(14)-day period preceding termination of this Agreement); (b) Executive's
failure to adhere to any written Company policy if the Executive has been given
a reasonable opportunity to comply with such policy or cure his failure to
comply (which reasonable opportunity must be granted during the fourteen
(14)-day period preceding termination of this Agreement); (c) misrepresentation
or concealment of a material fact for the purpose of securing or maintaining
employment with the Company; (d) the appropriation (or attempted appropriation)
of a material business opportunity of the Company, including attempting to
secure or securing any personal profit in connection with any
transaction entered into on behalf
of the Company; (e) the misappropriation (or attempted misappropriation) of
any of
the Company's funds or property; (f)
the conviction of, the indictment for (or its procedural equivalent), or the
entering of a guilty plea or plea of no contest with respect to, violation
of a
securities law or a felony, the equivalent thereof, or any other crime
with respect
to which imprisonment is a
possible punishment; (g) violation of the policies of the Company with respect
to non-discrimination, sexual harassment, or similar policies affecting workers
and the workplace; or (h) a breach of Sections 6 through
11 of this
Agreement.
(b)
By
Executive. Executive may
terminate employment under this Agreement upon 30 days’ written notice to the
Company. An Executive's termination shall be deemed for "Good Reason” if such
termination is due to: (i) a change materially adverse to Executive in the
nature of scope of Executive’s position, status, responsibilities or duties with
the Company as they existed as of the Effective Date (other than for
Underperformance), (ii) a material reduction by the Company in Executive's
base
salary as in effect on the Effective Date or as the same may be increased from
time to time, other than pursuant to an across the board reduction of an equal
or greater percentage affecting all of the Company's executive officers or
due
to Underperformance; Or (iii) a change, exceeding a fifty-mile radius, in
Executive's principal work location established on the Effective Date, except
for required travel on the Company's business to an extent substantially
consistent with business travel obligations of the other officers of the
Company.
(c)
Termination
Obligations. Upon
termination of Executive's employment with the Company, the Company shall have
no further obligation to Executive except as specifically provided under this
Agreement; provided, however, that termination of Executive’s employment shall
not affect right to receive any compensation Or bonuses which have accrued
but
have not been paid through the date of termination. Executive shall return
to
the Company any and all equipment including, without limitation, electronic
equipment, keys, credit cards, and the like, owned by the Company and used
by
Executive.
(d)
Severance.
Upon the termination
of
Executive's employment with the Company under this Section 14 prior to the
expiration of the Initial Term (A) by the Company for reasons other than Cause
or Underperformance, or (B) by Executive for Good Reason, the Company shall
pay
Executive a severance benefit equal to 50% of
the annual base salary Executive
would have received if Executive had remained in the employ of the Company
through the end of the Initial Term, but no other Benefit. Any such payment
due
to Executive shall be paid in cash or by check on the same dates on which
Executive would otherwise have received payment of Executive’s annual base
salary hereunder if employment had continued.
(e)
Withholding
Tax. The Company
shall be entitled to withhold from any compensatory payments that it makes
to
Executive under this Agreement or otherwise an amount sufficient to satisfy
all
state and local income and employment tax withholding requirements with respect
to any and all compensation paid to Executive by the Company.
15.
No
Conflicting Agreements.
Executive represents and warrants that he is not a party to any
agreement, contract or understanding, whether employment or otherwise which
would in any way restrict or prohibit him from undertaking or performing
employment in accordance with the terms and conditions of this
Agreement.
16.
Arbitration. Except for
(i) any claim for unemployment compensation or workers' compensation, and (ii)
any relief sought for breach by Executive of Sections 6-11 and/or under Section
20 of this Agreement, in which case a claim may be brought before any court
in
the State of Florida having jurisdiction over the matter, any controversy or
claim arising out of or related to this Agreement shall be settled by
arbitration in Florida under the National Rules for the Resolution of Employment
Disputes of the American Arbitration Association in effect at the same time
such
controversy or claim arises (the “rules”) by one arbitrator appointed by the
American Arbitration Association in accordance with the Rules, the arbitrator
also apportioning the costs of arbitration. The award of the arbitrator shall
be
in writing, shall be final and binding upon the parties, shall not be appealed
from or contested in any court and may, in appropriate circumstances, include
injunctive relief. Should a party fail to appear or be represented at the
arbitration proceedings after due notice in accordance with the Rules, then
the
arbitrator may nevertheless render a decision in the absence of such party,
and
such decision shall have the same force and effect as if the absent party had
been present, whether or not it shall be adverse to the interests of such party.
Any award rendered hereunder may be entered for enforcement, if necessary,
in
any court of competent jurisdiction, and the party against whom enforcement
is
sought shall bear the expenses, including attorneys fees, of
enforcement.
17.
Survival.
The covenants contained
in
this Agreement shall survive any termination of Executive's employment with
the
Company and any termination of this Agreement. The existence of any claim or
cause of action of Executive against the Company, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by
the
Company of any of the covenants contained in this Agreement.
18.
Severability. If the
scope of any restriction contained in this Agreement is too broad to permit
enforcement of such restriction to its fullest extent, then such restriction
shall be enforced to the maximum extent permitted by law, and Executive and
the
Company hereby consent and agree that the scope of such restriction may be
judicially modified in any proceeding brought to enforce such restriction.
To
the extent any provision of this Agreement shall be invalid or unenforceable,
it
shall be considered deleted from this Agreement and the remainder of this
Agreement shall remain in full force and effect.
19.
Notice. Any notices
required or permitted to be given under this Agreement shall be sufficient
if in
writing and delivered by personal delivery, air courier, or if mailed by
registered or certified first-class mail, return receipt requested, to the
residence of Executive as it appears in the corporate records for notice to
Executive, or to the principal office of the Company for notice to the Company.
All notices delivered in accordance with this Section shall be deemed to have
been received and shall be deemed effective if delivered in person or by air
courier, upon actual receipt by the intended recipient, or if mailed, upon
the
date of delivery or refusal to accept delivery as shown by the return receipt
therefore.
20.
Affiliate. An “Affiliate”
means any person or entity that directly indirectly controls, is controlled
by,
or is under common control with another. Control shall mean beneficial ownership
of 50.01% or more of the outstanding voting securities or other ownership
interests.
21.
No
Waiver. No term or
condition of this Agreement shall be deemed to have been waived nor there any
estoppel to enforce any provision of this agreement, except by a statement
in
writing signed by the party against whom enforcement of the waiver or estoppel
is sought. Any written waiver shall not be deemed a continuing waiver unless
specifically stated, and shall operate only as to the specific term or condition
waived and shall not constitute a waiver of such term or condition for the
future or as to any act other than that specifically waived.
22.
Amendments. No amendment
or modification of this Agreement shall be deemed effective unless made in
writing and signed by the parties hereto.
23.
Assignment. The rights
and obligations of the Company under this Agreement shall, without the prior
written consent of Executive, inure to the benefit of and be binding upon the
successors and assigns of the Company. This is a personal service contract
and
may not be assigned by Executive.
24.
Governing Law. This
Agreement is made under and shall be governed by and construed in accordance
with the internal laws of the State of Florida. By execution of this Agreement,
each party submits to in
personam jurisdiction of the courts of the State of Florida.
25.
Headings. The headings of
sections in this Agreement are solely for convenience of reference and shall
not
control the meaning or interpretation of any provision of this
Agreement.
26.
Counterparts and Facsimile
This Agreement may be executed in any number of counterparts, each of
which shall be deemed original and all of which, taken together, shall
constitute one agreement. Any counterpart may be delivered by any party by
transmission of signature pages to the other parties at the addresses set forth
herein, and delivery shall be effective and complete upon completion of such
transmission; manually signed copies of signature pages shall be nonetheless
be
delivered promptly after any such facsimile delivery.
27.
Entire Agreement. This
Agreement, and the Non-Disclosure Agreement contain the entire agreement of
the
parties relating to the subject matter hereof and supersede all prior and
simultaneous agreements, communications, and understandings with respect to
such
subject matter, whether oral or written.
This
Agreement is executed and delivered on the day and year first above
written.
Company: