EMPLOYMENT AGREEMENT
EXHIBIT 10.4
THIS
EMPLOYMENT AGREEMENT (“Agreement”) made effective as of May 1,
2008 (the “Effective Date”), by and between American Nano Silicon Technologies,
Inc. ., a California corporation (referred to as the “Corporation”),
and ______________, an
individual (referred to as “Employee”).
WITNESSETH
WHEREAS,
the Corporation is engaged in the business of providing household chemical
products and other related services (the “Business”); and
WHEREAS,
the Corporation desires to employ Employee as an employee and as its __________;
and.
WHEREAS,
Employee is willing to accept such employment by Corporation, on the terms and
subject to the conditions set forth in this Agreement.
AGREEMENT
NOW, THEREFORE, for and in
consideration of the premises and mutual agreements herein set forth, and other
good and valuable consideration, the receipt of which is hereby acknowledged,
Employee and Corporation covenant and agree as follows:
1. DEFINITIONS
For the
purposes of this Agreement, the following terms have the meanings specified or
referred to in this Section 1:
“Agreement” this Employment Agreement,
as amended from time to time.
“Base
Salary” as
defined in Section 3.1.
“Board of
Directors” the
board of directors of the Corporation.
“Confidential
Information” any
and all
(a) trade secrets concerning the business
and affairs of the Corporation and its subsidiaries and affiliates
(collectively, the “Affiliates”), business models, data, know - how, formulae,
compositions, processes, designs, sketches, photographs, graphs, drawings,
samples, inventions and ideas;
(b) certain corporate books and
records;
(c) information regarding marketing and
selling plans, business models, business plans, budgets and unpublished
financial information, prices and costs, and clients, that reasonably relate to
Corporation’s and/or the Affiliates current or proposed services, products and
business plans;
(d) information regarding the skills and
compensation of other employees or consultants of Corporation and/or the
Affiliates; and
(e) client and prospective client
information.
“Effective
Date” the date stated in the first
paragraph of the Agreement.
“Person” any individual, corporation
(including any nonprofit corporation), general or limited partnership, limited
liability company, joint venture, estate, trust, association, organization, or
governmental body.
“Term” the term of the Employee's
employment under this Agreement.
2. EMPLOYMENT TERMS AND
DUTIES
2.1 Employment. The Corporation hereby employs the
Employee, and the Employee hereby accepts employment by the Corporation, upon
the terms and conditions set forth in this Agreement.
2.2 Term. The Employment Period will commence on
the Effective Date and will continue until termination as specified in Section 6
(the “Term”).
2.3 Duties. The Employee will serve as President
of the Corporation and the Corporation will cause Employee to be elected as a
director on the Board of Directors of the Corporation. Employee shall have such
duties, authority, and responsibilities provided for in the Corporation
agreement of the Corporation and as customarily recognized for such offices and
titles under Delaware law. The Employee will devote his time, attention, skill,
and energy to promote the success of the Corporation's business, and will
cooperate fully with the Board of Directors in the advancement of the best
interests of the Corporation. Nothing in this Section 2.3, however, will prevent
the Employee from engaging in additional activities in connection with personal
investments and community affairs that are not inconsistent with the Employee's
duties under this Agreement. The foregoing shall not be construed as preventing
Employee from making investments in other businesses or enterprises provided
such investments do not require the provisions of substantial services by
Employee to the operations or the affairs of such businesses or enterprises such
that the provisions thereof would interfere in any material respect with the
performance of Employee's duties hereunder. The Employee will not be assigned
additional duties, authority or offices without the Employee’s
consent.
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3. COMPENSATION
3.1 Basic
Compensation
(a) Base
Salary. The Employee will
be paid an annual salary of $________, from the Effective Date through the first
calendar year from the Effective Date. The Employee will be paid an annual
salary of $______, from the end of the first calendar year from the Effective
Date through the end of the second calendar year from the Effective Date. The
Employee will be paid an annual salary of $________, from the end of the second
year from the Effective Date through the end of the third year after the
Effective Date. The Base Salary will be subject to upward adjustment as provided
below which will be payable, subject to such withholdings as are required by
law, in equal periodic installments according to the Corporation's customary
payroll practices, but not less frequently than monthly. The Base Salary will be
reviewed by the Board of Directors not less frequently than annually, and may be
adjusted upward at any time in the sole discretion of the Board of
Directors.
4. EXPENSES
4.1 Business Expenses.
The Employee is encouraged
and is expected, from time to time, to incur reasonable expenses for promoting
the business of the Corporation, including expenses for meals, entertainment,
travel, business related charges to Employee’s cellular phone account, if any,
and similar items. The Corporation agrees that during the Term of Employment it
will reimburse the Employee for such out-of-pocket expenses reasonably incurred
by Employee in connection with the performance of Employee’s services hereunder
and the promotion of the business and goodwill of the Corporation. In addition,
Corporation shall provide Employee with parking within or adjacent to the
Employee’s office location.
5. VACATIONS AND
HOLIDAYS
During
the Employment Period, the Employee will be entitled to vacations with pay, of
not less than 30 days per year, and additional time, in accordance with the
established practices of the Corporation now or hereafter in effect for
executive personnel. Employee is vested in 30 days vacation with pay upon
execution of this Agreement. Any unused vacation time in any given calendar year
shall be carried forward to succeeding calendar years.
6. TERMINATION PRIOR TO
EXPIRATION OF EMPLOYMENT PERIOD
6.1 Events of
Termination
The
Employment Period will terminate (except as otherwise provided in this Section
6):
(a)
for disability (as defined in Section 6.2), upon not less than sixty days' prior
notice from the Corporation to the Employee, or at such later time as such
notice may specify; or
(b)
for Cause (as defined in Section 6.3) immediately upon notice from the
Corporation to the Employee, or at such later time as such notice may specify;
or
(c)
for Good Reason (as defined in Section 6.4) upon not less than thirty days'
prior notice from the Employee to the Corporation or at such later time as such
notice may specify; or
(d)
upon the death of the Employee; or
(e) upon
thirty (30) days written notice from Employee; or
(f) upon
thirty (30) days written notice from Employer.
6.2 Definition of
Disability. For purposes
of Section 6.1, the Employee will be deemed to have a “disability” if, for
physical or mental reasons, the Employee is unable to perform the essential
functions of the Employee's duties under this Agreement for ninety (90)
consecutive days, or ninety (90) days during any twelve (12) month period, as
determined in accordance with this Section 6.2. If the Employee is covered under
a disability insurance policy, then whether the Employee has a “disability”
shall be determined in accordance with the terms of such policy. Otherwise, the
disability of the Employee will be determined by a medical doctor selected by
written agreement of the Corporation and the Employee upon the request of either
party by notice to the other. If the Corporation and the Employee cannot agree
on the selection of a medical doctor, each of them will select a medical doctor
and the two medical doctors will select a third medical doctor who will
determine whether the Employee has a disability. The determination of the
medical doctor selected under this Section 6.2 will be binding on both parties.
The Employee must submit to a reasonable number of examinations by the medical
doctor making the determination of disability under this Section 6.2, and the
Employee hereby authorizes the disclosure and release to the Corporation of such
determination and all supporting medical records. If the Employee is not legally
competent, the Employee's legal guardian or duly authorized attorney - in - fact
will act in the Employee's stead, under this Section 6.2, for the purposes of
submitting the Employee to the examinations, and providing the authorization of
disclosure, required under this Section 6.2.
6.3 Definition of
“Cause.” “Cause”
means:
(a) the Employee's willful breach of this
Agreement;
(b) the appropriation of a material
business opportunity of the Corporation, including attempting to secure or
securing any personal profit in connection with any transaction entered into on
behalf of the Corporation without the consent of the
Corporation;
(c) the misappropriation of any of the
Corporation's funds or property;
(d) 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, a felony or a misdemeanor involving fraud, embezzlement
or theft.
The
Corporation shall not be entitled to give notice of termination of employment
for Cause pursuant to subsection (a) through (c) above until the Corporation
gives Employee at least fifteen (15) days written notice of any such cause,
stating with particularity the facts and circumstances forming the basis of such
cause and Employee is given an opportunity to cure such claims within such
fifteen (15) day period.
6.4 Definition of “Good
Reason.” The phrase “Good
Reason” means any of the following:
(a) the Corporation's material breach of
this Agreement;
(b) the assignment of the Employee without
his consent to a position, responsibilities, or duties of a materially lesser
status or degree of responsibility than his position, responsibilities, or
duties at the Effective Date;
(c) the requirement by the Corporation that
the Employee be based anywhere other than the Corporation's principal executive
offices, in either case without the Employee's consent;
(d) a material decrease in Employee’s Base
Salary in violation of Section 3.1
(e) a material change in the Corporation’s
operating policy, as compared to Corporation’s operations immediately prior to
such change that materially and adversely curtails or interferes with the
Employee’s ability to perform the services required of Employee’s
position;
(g) a Change of Control (as defined below);
or
(h) the occurrence of circumstances
establishing constructive discharge under the common law of the State of
Texas.
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6.5 Effect of
Termination Upon Disability. In the event of termination of
employment by reason of disability:
(a) The Corporation will pay Employee his
Base Salary in accordance with the Corporation’s payroll schedule until the end
of the month in which the first anniversary of Employee’s termination for
disability is effective; and
(b) The Corporation will pay Employee the
cash value of any accrued unused vacation time from previous calendar years;
and
(c) The Corporation will pay Employee all
earned or accrued and unpaid Benefits through the end of the month in which
Employee’s termination for disability occurs; and
(d) The Corporation will reimburse Employee
for all unreimbursed expenses, in accordance with Sections 4.1 and
4.2.
6.6 Effect of
Termination for Cause. In
the event the Corporation terminates Employee’s employment for
cause:
(a) The Corporation will pay Employee his
Base Salary through the end of the month in which termination is effective;
and
(b) The Corporation will pay Employee the
cash value of any accrued unused vacation time from previous calendar years;
and
(c) The Corporation will pay Employee all
earned or accrued and unpaid Benefits; and
(d) The Corporation’s obligation to make
any other payments shall immediately terminate.
6.7 Termination by the
Employee for Good Reason.
If the Employee terminates this Agreement for good reason:
(a) The Corporation will pay the Employee's
Base Salary for eighteen (18) months from the end of the month in which the
termination is effective; and
(b) The Corporation
will pay Employee the cash value of any accrued unused vacation time from
previous calendar years.
7. CHANGE IN
CONTROL
For
purposes of this Agreement, a "Change of Control" shall be deemed to have taken
place if: (i) a third person, entity or group of persons, including a "group" as
defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the
beneficial owner of fifty percent or more of either the outstanding shares of
common stock or the combined voting power of Corporation’s then outstanding
voting securities entitled to vote generally upon any corporate action proposed
to shareholders for approval or adoption; or (ii) as a result of, or in
connection with, any cash tender or securities exchange offer, merger, or other
business combination, sale of assets or contested election, or any combination
of the foregoing transactions (a "Transaction"), the persons who were directors
of the Corporation before the Transaction shall cease to constitute a majority
of the Board of the Corporation or any successor corporation.
8. NON - DISCLOSURE
COVENANT
8.1 Acknowledgments by
the Employee. The Employee
acknowledges that:
(a) during the Employment Period and as a
part of his employment, the Employee will be afforded access to Confidential
Information;
(b) public disclosure of such Confidential
Information could have an adverse effect on the Corporation and its business;
and
(c) the provisions of this Section 8 are
reasonable and necessary to prevent the improper use or disclosure of
Confidential Information.
8.2 Agreements of the
Employee. In consideration
of the compensation and benefits to be paid or provided by the Corporation under
this Agreement, the Employee covenants as follows:
(a) Confidentiality. During the Employment Period and for a
period of one (1) year after the date of termination of the Term of Employment,
regardless of the reason for termination and regardless of whether termination
be by Corporation or Employee, the Employee will hold in confidence the
Confidential Information and will not disclose it to any person except with the
specific prior written consent of the Corporation or except as otherwise
expressly permitted by the terms of this Agreement.
(b) Non-Competition
Covenant. So long as
Employee is employed by Corporation and for a period of one (1) year after the
date of termination of the Term of Employment, unless such termination is by
Employee for Good Reason as provided in Section 6.7 or by the Corporation
without Cause as provided in Section 6.10, in which event the provisions of this
Section 8.2(b) shall not apply, the Employee specifically agrees that he will
not in North America, for himself, on behalf of, or in conjunction with any
person, firm or corporation other than the Corporation (either as principal,
employee, shareholder, member, director, manager, partner, advisor, consultant,
owner or part - owner of any corporation, Corporation or any type of business
entity) do any of the following:
(i) engage or participate in the Business
of the Corporation;
(ii) enter the employ of or render any
services to any person actively engaged in or directly competitive with the
Business;
(iii) directly or indirectly participate in
the ownership, management, operation, financing or control of, or be employed by
or consult for or otherwise render services to, any person, corporation, firm or
other entity that actively and directly competes with Corporation in the
Business; or
(iv) directly solicit for employment any
employee of the Corporation or any person who was employed by the Corporation
within six (6) months prior to such solicitation.
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9. GENERAL
PROVISIONS
9.1 Injunctive Relief
and Additional Remedy.
(a) The Employee acknowledges that the
injury that would be suffered by the Corporation as a result of a breach of the
provisions of Section 8 of this Agreement would be irreparable and that an award
of monetary damages to the Corporation for such a breach would be an inadequate
remedy. Consequently, the Corporation will have the right, in addition to any
other rights and remedies, including the recovery of money damages, it may have,
to obtain injunctive relief to restrain any breach or threatened breach or
otherwise to specifically enforce any provision of this Agreement, and the
Corporation will not be obligated to post bond or other security in seeking such
relief. Without limiting the Corporation's rights under this Section 9, or any
other remedies of the Corporation, if the Employee breaches any of the
provisions of Section 8, the Corporation will have the right to cease making any
payments otherwise due to the Employee under this Agreement.
(b) The Employee's covenants in Section 8
are independent covenants and the existence of any claim by the Employee against
the Corporation under this Agreement or otherwise, or against the Buyer, will
not excuse the Employee's breach of any covenant in Section
8.
(c) If the Employee's employment hereunder
expires or is terminated, this Agreement will continue in full force and effect
as is necessary or appropriate to enforce the covenants and agreements of the
Employee in Section 8; provided that the Corporation has fulfilled all
obligations to Employee hereunder upon such termination.
9.2 Waiver. The rights and remedies of the parties
to this Agreement are cumulative and not alternative. Neither the failure nor
any delay by either party in exercising any right, power, or privilege under
this Agreement will operate as a waiver of such right, power, or privilege, and
no single or partial exercise of any such right, power, or privilege will
preclude any other or further exercise of such right, power, or privilege or the
exercise of any other right, power, or privilege. To the maximum extent
permitted by applicable law:
(a) no claim or right arising out of this
Agreement can be discharged by one party, in whole or in part, by a waiver or
renunciation of the claim or right unless in writing signed by the other
party;
(b) no waiver that may be given by a party
will be applicable except in the specific instance for which it is given;
and
(c) no notice to or demand on one party
will be deemed to be a waiver of any obligation of such party or of the right of
the party giving such notice or demand to take further action without notice or
demand as provided in this Agreement.
9.3 Binding Effect;
Delegation of Duties Prohibited. This Agreement shall inure to the
benefit of, and shall be binding upon, the parties hereto and their respective
successors, assigns, heirs, and legal representatives, including any entity with
which the Corporation may merge or consolidate or to which all or substantially
all of its assets may be transferred. The duties and covenants of the Employee
under this Agreement, being personal, may not be delegated.
9.4 Notices. All notices, consents, waivers, and
other communications under this Agreement must be in writing and will be deemed
to have been duly given when:
(a) delivered by hand (with written
confirmation of receipt),
(b) sent by facsimile (with written
confirmation of receipt), provided that a copy is mailed by registered mail,
return receipt requested, or
(c) when received by the addressee, if sent
by a nationally recognized overnight delivery service (receipt requested), in
each case to the appropriate addresses and facsimile numbers set forth below (or
to such other addresses and facsimile numbers as a party may designate by notice
to the other parties):
If to
Corporation:
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American
Nano Silicon Technologies
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If
to Employee:
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10.5 Entire Agreement;
Amendments. This Agreement
and the Option Agreement contain the entire agreement between the parties with
respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, between the parties hereto with respect to the
subject matter hereof. This Agreement may not be amended orally, but only by an
agreement in writing signed by the parties hereto.
10.6 Governing
Law. This Agreement will
be governed by the laws of the State of Texas without regard to conflicts of
laws principles.
10.7 Section Headings;
Construction. The headings
of Sections in this Agreement are provided for convenience only and will not
affect its construction or interpretation. All references to “Section” or
“Sections” refer to the corresponding Section or Sections of this Agreement
unless otherwise specified. All words used in this Agreement will be construed
to be of such gender or number as the circumstances require. Unless otherwise
expressly provided, the word “including” does not limit the preceding words or
terms.
10.8 Severability. If any provision of this Agreement is
held invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or
unenforceable.
10.9 Counterparts. This Agreement may be executed in one
or more counterparts, each of which will be deemed to be an original copy of
this Agreement and all of which, when taken together, will be deemed to
constitute one and the same agreement.
IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement as of
the date above first written above.
EMPLOYEE:
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/s/________________________________________
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CORPORATION:
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By: /s/ Pu
Fachun
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Name:
Pu Fachun
Title:
Chairman
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Schedule to
Exhibit 10.4
Name | Offices Employed As | Anuual Salary |
Pu Fachun | Director, President, CEO and CFO | $10,000 |
Xxxx Xxxx | Director | $7,500 |
Zhang Changlong | Director | $7,500 |
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