MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT (the
“Agreement”) is
effective as of the 2nd day of
April, 2009 and is
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BETWEEN:
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SOLAR ENERTECH CORP., a
company incorporated under the laws of the State of Delaware and having a
business address at 0000 Xxxxx Xxxxx, Xxxxx
Xxxx, XX, 00000 (the “Company”)
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AND:
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XXXXX XXX XX, an accountant (the
“CFO”).
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A.
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The
Company is a company incorporated under the laws of the State of
Delaware;
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B.
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The
Company is in the business of manufacturing, distributing and selling
solar energyrelated products;
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C.
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The
Company requires a person to act as its Chief Financial Officer and, in
addition to this, provide other management
services;
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D.
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The
Company wishes to retain the services of the CFO on the terms and
conditions of this Agreement;
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THIS AGREEMENT
WITNESSES that in consideration
of the mutual covenants and agreements hereinafter contained, the parties agree
as follows:
ARTICLE
1
APPOINTMENT
AND AUTHORITY OF CHIEF FINANCIAL OFFICER
1.01 APPOINTMENT
OF CHIEF FINANCIAL OFFICER
The
Company hereby appoints Xxxxx Xxx Xx as its Chief Financial Officer to perform
certain services for the benefit of the Company as herein set forth, and the
Company hereby accepts such appointment and authority on the terms and
conditions herein set forth. The CFO further confirms his appointment
to the position of Chief Financial Officer effective April 2, 2009 and will hold
said appointment on an interim basis until such time as he may resign or his
appointment is terminated in accordance with the terms herein.
1.02 AUTHORITY
OF CFO
The CFO
shall have no right or authority, express or implied, to commit or otherwise
obligate the Company in any material manner whatsoever except to the extent
specifically provided herein or specifically authorized in writing by the
President of the Company or the Board of Directors of the Company (the “Board”).
1.03 CFO’S
WARRANTIES
The CFO
represents and warrants that he will provide competent management; that he has
the qualifications, experience and capabilities necessary to carry out the
Services (as defined in Section 2.02 below) to be performed hereunder; and that
the Services will be performed in a competent and efficient manner.
ARTICLE
2
CFO’S
AGREEMENTS
2.01 ROLE
OF CFO
The CFO
will undertake all activities which will further and enhance the business and
affairs of the Company as he is directed by the Board. For purposes
of this Agreement, “Company” means the Company and all of its subsidiaries and
affiliates. The CFO acknowledges that the Company initially has
limited personnel and resources, and that the CFO will be requested to undertake
activities which will be outside the general nature of work ordinarily performed
by a Chief Financial Officer of a corporation.
The CFO,
at the expense of and on behalf of the Company, shall:
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(a)
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make
and implement or cause to be implemented all lawful decisions of the
President of the Company and the Board in accordance with and as limited
by this Agreement; and
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(b)
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at
all times be subject to the direction of the President of the Company and
the Board and keep the Board informed as to all material matters
concerning the CFO’s activities.
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2.02 MANAGEMENT
ACTIVITIES
In
carrying out its obligations under this Agreement, the CFO shall undertake all
activities necessary to develop the business of the Company including those
activities described in Section 2.01 hereof and including the following:
overseeing, coordinating and supervising the preparation and audit of the
Company's financial statements, overseeing and supervising the preparation of
the Company's financial statement filings in accordance with applicable rules
under the Securities Exchange Act of 1934 and acting as the liaison and contact
person for outside counsel and audit staff on all matters concerning the
preparation, filing and audit of the Company's financial statements
(collectively, the “Services”).
The CFO
acknowledges that the Company is a reporting issuer under the laws of the United
States of America and that any funds received as subscriptions or sales revenues
of the Company’s products must be fully accounted for in a manner in accordance
with US GAAP. The CFO agrees that he will make all reasonably
necessary efforts to ensure that the management of the Company, and the
accounting for it, is in accordance with US GAAP principles.
The
Services will be delivered and performed primarily in Shanghai, PRC and at the
Company's offices in Shanghai, PRC.
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2.03 AUTHORITY
OF CFO
The
Company hereby authorizes the CFO, subject to the other provisions of this
Agreement, to do all acts and things as the CFO may in its discretion deem
necessary or desirable to enable the CFO to carry out its duties hereunder, and
hereby grants the CFO the inherent authority to undertake all such activities as
a CFO acting as CFO normally has.
2.04 LIMITATION
OF CFO’S OBLIGATIONS
Notwithstanding
anything in this Agreement, the CFO shall not be required to expend his own
money or to incur any liabilities, obligations, costs, dues or debts and all
money required by the Manger to carry out his duties under this Agreement shall
be provided by the Company to the CFO forthwith upon the CFO’s
request.
The
engagement of the CFO by the Company will be exclusive and the CFO will devote
his full-time energies to acting as CFO of the Company.
2.05 RELATIONSHIP
The
parties confirm the CFO will be a full-time employee of the Company and will be
subject to the control and direction of the President of the Company and its
board of directors; and that income tax deductions and other deductions will be
made by the Company where necessary.
ARTICLE
3
COMPANY’S
AGREEMENTS
3.01 COMPENSATION
OF CFO
As
compensation for the services rendered by the CFO pursuant to this Agreement,
the Company agrees to pay the CFO an annual salary of RMB￥450,000 which
amount will be increased to RMB￥600,000 per annum
subsequent to the filing of the first quarterly financial statements which
states the Company is profitable (the “Salary”). The
Salary shall be payable on or before the first day of each month, or if a
Saturday, Sunday or holiday, the preceding business day.
The CFO
will also be granted an option to purchase up to 500,000 shares of the Company’s
common stock. The grant shall vest over four (4) years, with 25% of
the shares vesting each year. The exercise price shall be equal to
the market price of the Company’s common stock on the date of the grant and
shall be exercisable until the earlier of (a) the fourth (4th) anniversary of
the date of vesting and (b) sixty (60) days from the date at which the CFO
ceases to be employed by the Company.
The CFO
shall be entitled to two weeks paid vacation for every twelve months worked
under this Agreement.
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3.02 REIMBURSEMENT
OF EXPENSES
The
Company shall only be obligated to pay or reimburse the CFO for the normal and
usual expenses of managing the Company as provided herein, including, without
any limitation, any other expenses as set out herein. In the event of
a dispute between the CFO and the Company regarding the amount set out in the
statement of expenses the Company will nevertheless be obligated to pay the
amount set out herein to the CFO, and the Company may then refer the matter to
arbitration as provided for herein.
3.03 ACCESS
TO COMPANY INFORMATION
The
Company shall make available to the CFO such financial information and data and
shall permit the CFO, to have access to such documents or premises as are
reasonably necessary to enable his to perform the services provided for under
this Agreement.
3.04 INDEMNITY
BY COMPANY
The
Company agrees to indemnify, defend and hold harmless the CFO, from and against
any and all claims, demands, losses, actions, lawsuits and other proceedings,
judgements and awards, and costs and expenses (including reasonable legal fees),
arising directly, in whole or in part, out of any matter related to any action
taken by the CFO within the scope of his duties or authority hereunder,
excluding only such of the foregoing as arise from the fraudulent, negligent, or
wilful act or omission of the CFO and the provisions hereof shall survive
termination of this Agreement. Nothing in the paragraph may be
construed to commit the Company to indemnify the CFO or provide insurance where
such an act is prohibited by statutory, legal or regulatory
requirements.
ARTICLE
4
DURATION,
TERMINATION AND DEFAULT
4.01 EFFECTIVE
DATE
This
Agreement shall become effective as of the day and year first written above and
shall remain in force, subject to the earlier termination as provided herein,
for a period of two years. Thereafter this Agreement will continue on a monthly
basis, on agreement of the parties hereto, until terminated in accordance with
Section 4.02 below. This Agreement replaces and supersedes any oral
agreement regarding the CFO’s compensation .
4.02 TERMINATION
This
Agreement may be terminated by either party at any time without cause by giving
the other party written notice of such termination at least thirty (30) days
prior to the termination date set forth in such written notice.
The CFO
understands that his employment is at-will and that there is no obligation for
the Company to continue to employ the CFO for any specific period of time, or in
any specific role or geographic location.
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4.03 DUTIES
UPON TERMINATION
Upon
termination of this Agreement for any reason, the CFO shall promptly deliver the
following in accordance with the directions of the Company:
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(a)
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a
final accounting, reflecting the balance of expenses incurred on behalf of
the Company as of the date of
termination;
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(b)
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all
documents pertaining to the Company or this Agreement, including but
not limited
to all books of account, financial records, audit working papers,
correspondence
and contracts, invoices, sales records, inventory records and financial
data in electronic form provided;
and
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(c)
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all
property of the Company, including product inventory, which is in
his possession
or the possession of his family, associates and
affiliates.
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Upon
termination, the Company will pay to the CFO any outstanding amounts owed to him
under this Agreement. The CFO agrees that upon his termination, the
CFO will not be entitled to any additional payments beyond amounts already
accrued under the terms of this Agreement.
Upon
termination, the Company shall have a security interest and ownership in any
unsold product, inventory or asset of the Company which is in the possession of
the CFO at the time of the termination and the CFO shall be personally liable
for the return of such unsold product, inventory or asset to the care and
control of the Company or for its return to the Company.
ARTICLE
5
CONFIDENTIALITY
5.01 OWNERSHIP
OF WORK PRODUCT
Subject
to Section 5.02, all financial data, financial records (be they in electronic or
hard form), reports, documents, concepts, products and processes together with
any marketing schemes, business or sales contracts, or any business
opportunities prepared, produced, developed, or acquired, by or at the
discretion of the CFO alone or in conjunction with other employees of the
Company, directly or indirectly, in connection with or otherwise developed or
first reduced to practice by the CFO performing the services (collectively, the
“Work Product”) shall
belong exclusively to the Company which shall be entitled to all right,
interest, profits or benefits in respect thereof and shall further be entitled
to exclusive possession thereof.
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5.02 CONFIDENTIALITY
During
and for a period of two (2) years after the termination of this Agreement, the
CFO shall not disclose any information, documents, or Work Product concerning
the existing company interests to which the CFO may have access by virtue of its
performance of the services to any person not expressly authorized by the
Company for that purpose.
5.03 RESTRICTIVE
COVENANTS
The CFO
shall, during the term of this Agreement, devote all reasonable time, attention,
and abilities to the business of the Company and, where directed by the
President or the Board, to the business of companies associated with the Company
as is reasonably necessary for the proper exercise of his duties.
ARTICLE
6
MISCELLANEOUS
6.01 WAIVER;
CONSENTS
No
consent, approval or waiver, express or implied, by either party to or of any
breach or default by the other party in the performance by the other party of
its obligations hereunder shall be deemed or construed to be a consent or waiver
to or of any other breach or default in the performance by such other party of
the same or any other obligations of such other party or to declare the other
party in default, irrespective of how long such failure continues, shall not
constitute a general waiver by such party of its rights under this Agreement,
and the granting of any consent or approval in any one instance by or on behalf
of the Company shall not be construed to waiver or limit the need for such
consent in any other or subsequent instance.
6.02 GOVERNING
LAW
This
Agreement shall be governed by the laws of the State of California and, subject
to Section 6.08, any dispute under the terms of this Agreement shall enure to
the courts thereof.
6.03 NO
ASSIGNMENT PERMITTED
All of
the rights, benefits, duties, liabilities and obligations of the parties hereto
shall ensure to the benefit of and be binding upon the respective successors of
the parties provided that in no circumstances is this Agreement assignable by
either party save and except that, where approved in writing by both parties,
the CFO may be assigned to complete tasks and provide services to a subsidiary
of the Company or an associated company thereof.
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6.04 MODIFICATION
OF AGREEMENT
Save and
except any non-disclosure agreement and non-competition agreement which may be
executed between the CFO and the Company, the Agreement constitutes the entire
agreement between the CFO and the Company and to be effective any modification
of this Agreement must be in writing and signed by the party to be charged
thereby.
6.05 NOTICES
All
notices, requests and communications required or permitted hereunder shall be in
writing and shall be sufficiently given and deemed to have been received upon
personal delivery or, if mailed, upon the first to occur of actual receipt of
forty-eight (48) hours after being placed in the mail in the United States of
America, postage prepaid, registered or certified mail, return receipt
requested, respectively addressed to the Company or the CFO as first noted
above, or to such other address as may be specified in writing to the other
party, but notice of a change of address shall be effective only upon the actual
receipt; and provided that in the event of an interruption in the ordinary
postal service, all notices, requests and communications shall be delivered and
not mailed.
6.06 FURTHER
ASSURANCES
The
parties will execute and deliver all such further documents and instruments and
do all such further acts and things as may be required to carry out the full
intent and meaning of this Agreement and to effect the transactions contemplated
hereby.
6.07 COUNTERPARTS
This
Agreement may be executed in several counterparts, each of which will be deemed
to be an original and all of which will together constitute one and the same
instrument. A faxed signature shall be accepted as an
original.
6.08 ARBITRATION
In the
event that the parties hereto dispute any matter concerning the terms and
conditions of the Agreement, the matter will be determined by a single
arbitrator appointed by the parties hereto or, in the event that the parties are
not able to agree on the appointment of a single arbitrator, either party may
request the courts to appoint a single arbitrator in accordance with
commercially normal arbitration practices in the State of
California. The arbitrator shall fix a time and place in Santa Xxxxx
County, California or, should the parties agree, in Hong Kong, for the purpose
of hearing the evidence and representations of the parties. After
hearing any evidence and representations that the parties may submit, the
arbitrator shall make an award and reduce the same to writing and deliver one
copy thereof to each of the parties. The award shall be kept
confidential by the parties hereto except as disclosure is required by
applicable securities laws and regulatory bodies. The decision of the
arbitrator shall be made within 45 days after his or his appointment subject to
any reasonable delay due to unforeseen circumstances. The parties
agree that the award of the single arbitrator shall be final and binding upon
each of them and shall not be subject to appeal.
6.09 INDEPENDENT
LEGAL ADVICE
The
CFO hereby acknowledges that he has acted for himself in the preparation and
negotiation of this Agreement and acknowledges that he has been advised to seek
independent legal counsel and review of this Agreement, and in particular tax
counsel, prior to its execution.
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IN WITNESS WHEREOF the parties
have executed the Agreement effective April 2, 2009.
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XXXXX
XXX XX
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by
its authorized signatory:
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/s/
XXX XXX YOUNG
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/s/
XXXXX XXX XX
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Signature
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Signature
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CEO
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Title
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