Interim Services Agreement
Exhibit
10.29
September
1, 2009
Xxxxxx
Xxxxx. CEO
Envision
Solar International, Inc.
'1225 Xxxxxxxxx Xxxxxx Xxxxx 0000.
Xx Xxxxx,
XX 00000
Dear
Xxx:
Xxxxx,
LLC ("Xxxxx," "we," "us" or "our") is pleased that Envision Solar International.
Inc. ("Company," "you" or "your")
has selected us to provide you with outsourced interim services. The
services (the "Services")
and tees will be more particularly described on the Schedule attached hereto and
will be provided by the individual resource (the "Xxxxx Resource") identified on
such Schedule. Schedules for additional
Xxxxx Resources may he added from time to time upon
the mutual
written agreement of the parties. In addition, upon the request of
the Company and the execution of an additional Schedule to this agreement, Xxxxx
will provide search Services to the Company.
Engagement The Xxxxx Resource will be one of
Xxxxx'x employees or members, and we will be solely responsible
for determining
the conditions, terms
and
payment of compensation
and benefits
for the Xxxxx Resource.
You will be solely responsible for providing the Xxxxx Resource day-to-day guidance.
supervision. direction, assistance and other information
necessary for the successful and timely
completion of the
Services. Xxxxx will have no oversight, control, or authority over the Xxxxx
Resource with respect to
the Services. The
Company acknowledges that
it is solely responsible for the sufficiency of the Services for its purposes. The
Company will designate a management-level individual to be responsible for overseeing the
Services, and the Xxxxx Resource will report directly to such individual
with respect to the
provision of the Services. Unless the Xxxxx Resource is acting as an executive
officer of the Company and
is authorized by the
Company to make such
decision, the Company will not permit or require the Xxxxx Resource to be the
ultimate decision making authority for any material decision relating to your business, including,
without limitation, any proposed merger, acquisition, recapitalization,
financial strategy or
restructuring.
Fees
and Expenses. You will pay
us the tees set forth on
the applicable Schedule.
In addition to our standard professional service
fees. we will charge an administrative fee equal
to 5% of our professional Service
fees, which covers
ancillary administrative costs such as technology, communication,
and supplies. In addition, you will
reimburse Xxxxx directly for all pre-approved travel and out-of-pocket
expenses incurred in
connection with this agreement (including any Schedules).
Payment
Terms. Payments to Xxxxx
should be made within 30 days of receipt of invoice by electronic transfer in
accordance with the instructions set forth below or such alternative
instructions as provided by us from time to time. Any amounts not
paid when due may be subject to a periodic service charge equal to the lesser of 1.5% per month and the
maximum amount allowed under applicable law, until such amounts
arc paid in full. including assessed service charges. In lieu of terminating
this agreement, we may
suspend the provision of
any Services if amounts owed are not paid in accordance with the terms of
this
agreement.
Bank Name
and Address: Silicon Valley Bank, 0000 Xxxxxx Xxxxx, Xxxxx Xxxxx, XX
00000
Beneficiary:
Xxxxx. LLC
Beneficiary
Account Number: 3300599791
ABA Transit/Routing Number: 000000000
Please reference
Company name in the body
of the payment.
Effective
Date and Termination_ This
agreement will he effective as of the earlier of (0 the date Xxxxx begins providing Services to the Company, and (ii) the date of the last
signature to this agreement as indicated on the signature page.
In
the event that a party
commits a breach of this agreement (including any Schedule) and fails to cure the
same within 10
days following delivery by
the non-breaching party of written notice specifying the nature of
the breach. the non-breaching party may terminate this agreement or the applicable Schedule effective
upon written notice of such termination. The termination rights set forth in this Section are in addition
to and not in lieu of the termination rights set
forth in each of the Schedules.
Hiring
the Xxxxx Resource Outside of a Xxxxx
Agreement. The parties
recognize and agree that Xxxxx is responsible for introducing
the Xxxxx Resources to the Company. Therefore, if at any time during the time
frame in which a Xxxxx
Resource is providing
Services to the Company and for a period of 12-months thereafter, other than in
connection with this
agreement or another
Xxxxx agreement, the
Company or any of its subsidiaries or affiliates employs such Xxxxx
Resource, or engages such Xxxxx Resource as an independent contractor,
the Company will pay Xxxxx
a placement fee in an
amount equal to 50% of
Xxxxx'x Annualized Fees (as defined below) The amount will be
due and payable to Xxxxx upon written demand to the Company.
"Annualized Fees" means the equivalent of what Xxxxx would receive under this agreement for such
Xxxxx Resource on a full-time annual basis plus the maximum amount of any bonus for which
Xxxxx was eligible with
respect to the then -current bonus year for the Xxxxx Resource. You will have the
opportunity to make the Xxxxx Resource a permanent_ full -time member
of the Company at any
time during the term of this Schedule by entering into
another form of Xxxxx
agreement, the terms of which will be negotiated at such
time.
Warranties
and Disclaimers. We
disclaim all
representations and warranties, whether express. implied or statutory, including, but not
limited to any warranties of quality, performance, merchantability, or
fitness of use or purpose.
Without limiting the foregoing, we make no representation or warranty with
respect to the Xxxxx
Resource or the Services provided hereunder, and we will not be responsible for
any action taken by you in
following or declining to follow any of the Xxxxx Resource's advice or recommendations. The Services provided
by Xxxxx
and the Xxxxx Resource hereunder are
for the sole benefit of the Company and not any
unnamed third parties. The Services will not constitute an audit, review. opinion, or
compilation, or
any other type of financial statement reporting
or attestation
engagement that
is subject to the rules of the AICPA or other similar
state or national professional bodies or laws and will not result in an
opinion or any form of assurance on internal controls.
Limitation of Liability;
Indemnity.
(a) Xxxxx'x
liability in any and all categories and for any and all causes arising under
this agreement, whether based in contract, tort, negligence, strict liability or
otherwise, will. in the aggregate, not exceed the actual fees paid by you to us
over the previous two months' of the agreement with respect to the Xxxxx Resource from whom the liability
arises. In no event will we be
liable for incidental, consequential, punitive, indirect or special
damages, including, without limitation, interruption or loss of business, profit
or goodwill. As a condition for
recovery of any liability, you must assert any claim against us within
three months after discovery or 60 days after the termination or expiration of
the applicable Schedule under which the liability arises, whichever is
earlier
(b) You agree
to indemnify us and the Xxxxx Resource to the full extent
permitted by law for any losses, costs, damages, and expenses (including
reasonable attorneys' fees), as they are incurred, in connection
with any cause of action, suit, or other proceeding arising in connection with
the Xxxxx Resource's services to you.
Insurance. To the extent the Company has
directors' and officers' liability insurance in effect, the Company will provide such insurance
coverage for any Xxxxx Resource serving as an officer or executive of the Company under this agreement at
no additional cost to the Xxxxx Resource, along with written evidence to Xxxxx or the Xxxxx Resource
that the Xxxxx Resource is covered by such insurance. Furthermore, the Company will maintain
such insurance coverage with
respect to occurrences arising during the term of this agreement for
at least three years following the termination or expiration of the applicable Schedule or will purchase a
directors' and officers' extended reporting period or "tail" policy to cover the Xxxxx Resource for such
three year period.
Governing and
Witness Fees.
(a) This
agreement will be governed by and construed in accordance with the laws of the
State of California. without regard to conflicts of laws
provisions.
(b) If the
parties are unable to resolve any dispute arising out of or in connection with
this agreement, the parties agree and stipulate that any such disputes will be
settled by binding arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association ("AAA"). The arbitration will be conducted in the San Diego,
California office of the AAA
by a single arbitrator selected by the parties according to the rules
of the AAA, and the decision of the
arbitrator will be final and
binding on both parties. In the event that the parties fail to agree on the
selection of the arbitrator within 30 days after either party's request for arbitration
under this Section. the
arbitrator will be chosen by the AAA. The arbitrator may in his or her
discretion order documentary discovery but will not allow depositions without a
showing of compelling need. The arbitrator will render his or her decision
within 90 days after the call for
arbitration. Judgment on the award of the arbitrator may be entered in and enforced by
any court of competent jurisdiction. The arbitrator will have no authority to award damages
in excess
nr in contravention
of this agreement and may
not amend or disregard any provision of this agreement,
including this section. Notwithstanding the foregoing, either party may seek
appropriate injunctive relief from any court of competent jurisdiction, and Xxxxx may pursue payment of
any unpaid amounts due
under this agreement through any court of competent
jurisdiction.
(c) In the event any member or employee of
Xxxxx (including, without limitation. any Xxxxx Resource) is requested or authorized by you or is
required by government regulation, subpoena or other legal process to produce documents or
appear as witnesses in connection with any action, suit or other proceeding initiated by a
third party against you or by you against a third party. you will, so
long as Xxxxx is not a party to
the proceeding in which the information is sought, reimburse Xxxxx for its
member's or employee's
professional time (based on customary rates) and expenses, as well as the fees
and expenses of its counsel, incurred in responding to such
requests. This provision is in addition to and not in lieu of any indemnification
obligations the Company may have under this agreement.
Miscellaneous.
(a) This agreement together with all Schedules
constitutes the entire agreement between the parties with regard to the subject
matter hereof and supersedes any and all agreements, whether oral or
written. between the
parties with respect to its subject matter. No amendment or modification to this
agreement
will be valid unless
in writing and signed by both parties.
(b) If any portion of this agreement is found to
be invalid or unenforceable, such provision will be deemed severable from
the remainder of this agreement
and will not cause the invalidity or unenforceability of the remainder of
this agreement, except to the extent that the severed provision deprives either party of a substantial portion of
its
bargain.
(c)Neither
party will be deemed to have waived any rights or remedies accruing under this
agreement
unless such waiver is in writing and signed by the party electing to waive the
right or remedy. The waiver by any party of a breach or violation of any
provision of this agreement will not operate or be construed as a waiver of any
subsequent breach of such
provision or any other provision of this agreement.
(d) Neither
party will be liable for any delay or failure to perform under this
agreement
(other than with respect
to payment obligations) to the extent such delay or failure is a result
of an act of God, war, earthquake, civil
disobedience. court order, labor dispute, or other cause beyond such party's
reasonable
control.
(e) You may
not assign your rights or obligations under this agreement without the
express
written
consent of Xxxxx. Nothing in this agreement will confer any rights upon any
person or entity other than the parties hereto and their respective successors
and permitted assigns and the Xxxxx Resources.
(f) The
expiration or termination of this agreement or any Schedule will not destroy
or
diminish
the binding force and effect of any of the provisions of this agreement or any
Schedule that expressly, or by reasonable implication, come into or continue in
effect on
or after such expiration or termination, including, without limitation,
provisions relating to
payment of fees
and expenses (including witness fees and expenses and liquidated damage
fees), governing law, arbitration, limitation of liability and
indemnity.
(g) You agree
to reimburse Xxxxx for all costs and expenses incurred by Xxxxx in
enforcing
collection
of any monies due under this agreement. including, without limitation,
reasonable attorneys' fees. court costs and arbitration fees.
(h) You agree
to allow us to use the Company's logo and name on Xxxxx'x
website and other
marketing
materials for the sole purpose of identifying the Company as a client of Xxxxx.
Xxxxx will not use the Company's logo or name in any press release or general
circulation advertisement without the Company's prior written
consent.
We
appreciate the opportunity
to serve you and believe this agreement accurately reflects
our mutual understanding
of the terms upon which the Services will be provided. We would be
pleased to discuss this agreement with you at your convenience. If the foregoing
is in accordance with your understanding, please
sign a
copy of this
agreement and
return it to my attention.
Sincerely,
Xxxxx, LLC
/s/ Xxxx Xxxxxxx
Xxxx Xxxxxxx
Managing Partner - San Diego
Accepted and Agreed:
Envision Solar International, Inc.
By: Xxxxxx Xxxxx
Name: Xxxxxx Xxxxx
Title: CEO
Date: 9/1/09
Schedule
to Interim Services Agreement
This Schedule is entered into in
connection with that certain Interim Services
Agreement. dated
September
1, 2009 (the "Agreement"), by and between Xxxxx, LLC ("Xxxxx," "we," "us" or
"our") and Envision Solar International. Inc. ("Company." "you" or "your") and
will be governed by the terms and conditions of the Agreement.
Xxxxx
Resource Name: Xxxxxx Xxxxx
Position:
Part-time: Chief Financial
Officer & Executive
Vice President
Company
Supervisor: Xxxxxx
Xxxxx, CEO
Start
Date: September 2, 2009
End Date:
Estimated to be December 31, 2009 but may be modified as mutually
agreed.
Replacement:
If you
are dissatisfied with the
Services provided by the Xxxxx Resource(s). we will immediately remove the Xxxxx Resource(s) and
endeavor to furnish a replacement as soon as reasonably practical. We do not guarantee that we
will be able to find a suitable replacement.
Termination:
Either party may terminate
this Schedule at any time for any reason upon notice to the other
party; provided,
however. the parties will endeavor to provide as much
notice as possible prior to
termination. preferably
two weeks.
Fees: You will pay Xxxxx
520,000 per month for the Xxxxx
Resource. prorated for billing periods less than one month. Xxxxx Resource will work from the Company's
offices for at least three days per week and be accessible remotely for the
balance of each week by phone and email.
Payroll
taxes and employee benefits: You will
not be responsible for
payroll
taxes or employee benefits since
the Xxxxx Resource will
not be an
employee of the
Company.
Expenses: You will directly reimburse Xxxxx
Resource
for reasonable and
customary business expenses,
including
parking related expenses, as submitted
and pi e-approved
by you.
Xxxxxxxx:
Xxxxx will xxxx monthly for Services in arrears of the provision of such
Services as follows payable
within 30 days of invoice date:
· 25% of
fees billed will be payable in cash;
· 75% of
fees billed will be payable in qualified employee stock
options;
°
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a Share calculation: Amount
of fees
deferred divided by Fair Market Value per share, at
the
time of services
equals the
number of shares.
Option calculation: Number of shares calculated above
times two
equals
the
number of stock
options to be issued with a Fair Market Value
above strike price.
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· Within 15 days of execution of
agreement:
$2,500 (applied of cash
portion
of fees)
Permanent Engagement: You will
have the opportunity to make the Xxxxx Resource a permanent,
full-time member of the Company at any time during the term of
this Schedule by entering into another form of Xxxxx agreement, the terms of
which will be negotiated at such time.
In the
event of a conflict between the terms and conditions of this Schedule and the
Agreement, the terms and conditions of the Agreement will control.
Xxxxx,
LLC
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Envision
Solar International, Inc.
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By: /s/ Xxxx
X. Xxxxxxx
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/s/ Xxxxxx
Xxxxx
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Name: Xxxx
X. Xxxxxxx
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Name: Xxxxxx
Xxxxx
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Title: managing
Partner-San Diego
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CEO
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Date:
9-1-09
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Date:
9-1-09
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