CONSULTING AGREEMENT
CONSULTING AGREEMENT (this "Agreement") dated as of December 1st,
2008,
between Turbodyne Technologies, Inc., and (the Company"), a Nevada
corporation,
and John Adams ("Consultant").
WHEREAS, the Company desires to engage Consultant to act as
Chief
Executive Officer and a director on the Company's board of
directors and assist
it with various functions as requested by the Company and agreed to
by
Consultant from time to time, as set forth hereinafter and ;
WHEREAS, Consultant has experience in the business, is qualified to
and
desires to render such consulting and advisory services to the
Company. (the
"Services");
NOW, THEREFORE, in consideration of the premises, the mutual
agreements
herein set forth and other good and valuable consideration, the
receipt and
adequacy of which are hereby acknowledged, the parties agree as
follows:
1. Effectiveness; Retention of Consultant; Services to be
Performed
(a) Effective as of the date of this Agreement the Company
engages Consultant to provide the Services during the Term (as
defined in
paragraph 3) and Consultant hereby accepts such engagement and
agrees to perform
the Services for the Company upon the terms and conditions set
forth herein.
During the Term, Consultant shall devote such attention as needed
to perform the
services required by this Agreement. This is not expected to be
"full time"
(c) Consultant shall perform the Services hereunder at such
locations as are agreed to be appropriate for Consultant to perform
his duties
under this Agreement. Under no circumstances shall Company expect
Consultant to
relocate his residence. Travel requirements are expected to be
minimal.
2 Independent Contractor. In rendering services hereunder,
Consultant
shall be acting as an independent contractor, workspace and
managing his own
hours of work as determined by Consultant to fulfill the
engagement, and not as
an employee of the Company. In Consultant's role as CEO, Consultant
will be
acting on behalf of the Company and will commit the Company to
actions. This
will be done appropriately to increase the value of the Company and
in
accordance with the directions of the Board of Directors. Nothing
contained in
this Agreement shall be construed or applied to create a
partnership. Consultant
shall be responsible for the payment of all federal, state or local
taxes
payable with respect to all amounts paid to Consultant under this
Agreement;
provided, however, that if the Company is determined to be liable
for collection
and/or remittance of any such taxes, Consultant shall reimburse the
Company for
all such payments made by the Company, within a reasonable period
of time and
provision of appropriate documentation.
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3 Term. Unless terminated at an earlier date in accordance with
Paragraph 7, this Agreement shall terminate three years from the
date of this
Agreement (the "Term").
4 Compensation.
(a) As compensation for Consultant's services hereunder, the
Company
will pay Consultant consideration in the form of 12,000,000 shares
of the
Company's common stock (the "Shares"). The Shares will be
restricted from
transfer and will vest in accordance to vesting repurchase
agreement defined in
i, ii, and iii below ("Vesting Agreement") The Shares shall be
subject to
repurchase by the Company and such repurchase agreement will
terminate in
accordance with the following schedule:
i 4,000,000 Shares shall be "service based" and the repurchase
agreement will terminate at the end of each month on 111,111.11
Shares
for each month of service.
ii. 4,000,000 Shares shall be "revenue based" and the
repurchase agreement shall terminate upon filing of a report with
the
Securities & Exchange Commission containing reviewed or
audited
statements reflecting the recognition of revenue for the first sale
of
a production model of a Company product after the date hereof
provided
payment is made therefore and the product is not returned and
provided
such sale occurs during the period that the Consultant has
provided
services hereunder or pursuant to the Employment Agreement.
iii. 4,000,000 Shares shall be "EBITDA based" and the
repurchase agreement will terminate upon filing of reports with
the
Securities & Exchange Commission containing reviewed or
audited
statements reflecting total EBITA or earnings before taxes,
interest or
amortization , of $1,000,000 and provided that such sales occur
during
the period that the Consultant has provided services hereunder
or
pursuant to the Employment Agreement.
It is understood that a separate repurchase agreement will be
entered
into between the Company and Consultant that will govern the terms
and
address tax implications in connection with the compensation in
this
section 4(i), 4(ii) and 4(iii).
5 Expenses. Consultant shall be reimbursed, in accordance with
the
policies and procedures that the Company establishes from time to
time, for all
reasonable and necessary out-of-pocket expenses that Consultant
incurs in
performing the services hereunder, including, without limitation,
reasonable
travel expenses incurred by Consultant.
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<PAGE>
6 Protection of Trade Secrets, Know-How and/or Other
Confidential
Information of the Company.
The position of CEO is of importance to the Company. It is
naturally expected
that the CEO will work to enhance the value and growth of the
Company and will
not disclose or misappropriate anything that would harm the
Company. Even so, it
is important to protect the core value of the Company which lies in
it
intellectual property and confidential information.
(a) Consultant shall not divulge, furnish or make accessible to
anyone
or use in any way (other than in accordance with the provisions
herein or the
written policies of the Company) any confidential or secret
knowledge or
information of the Company that Consultant has acquired or become
acquainted
with during engagement by the Company or any affiliated companies
prior to the
Term or will that he may acquire or become acquainted with during
the Term,
whether developed by Consultant or by others, concerning any trade
secrets or
confidential information. Trade Secrets and Confidential
Information shall refer
to any and all trade secrets and confidential information ,
including but not
limited to all confidential or secret designs, processes, formulae,
products or
future products, plans, devices or material (whether or not
patented or
patentable) directly or indirectly related in any aspect of the
business of the
Company, any customer or supplier lists of the Company, any
confidential or
secret development or research work of the Company, or any other
confidential
information or secret aspects of the business of the Company
("Company
Confidential Information")
(b) . It is agreed that all materials produced for the Company
by
Consultant, including any data collected or information produced
for Company by
Consultant as well as Software, tools and other instrumentation or
intellectual
property, or other inventions ( individually and collectively"
Company
Intellectual Property"), created by Consultant during and/or as a
result of the
engagement hereunder, shall be the property of the Company, free
and clear of
all claims. Consultant shall retain no claim or assert any claim of
authorship
therein. All rights therein of Consultant, if any, are hereby
assigned to the
Company irrespective of whether such works constitute "works for
hire". At the
request of the Company Consultant shall execute such documents as
the Company
may desire to evidence or effect its ownership in the Company
Intellectual
Property. All Company Intellectual Property , shall also be deemed
Company
Confidential Information and subject as such to the provisions of
this Agreement
relating to such information.
(c) Upon termination of this Agreement, Consultant shall deliver to
the
Company all property that is in his possession and that is the
Company's
property or relates to the Company's business, including, but not
limited to
corporate records, notes, data, memoranda, software, electronic
information,
models, equipment, and any copies of the same. Consultant shall
permanently
delete all of his electronic data containing such property after
delivering such
data to the Company.
(d) The parties acknowledges that the Company Confidential
Information
constitutes a unique and valuable asset of the Company , acquired
and developed
at great time and expense by the Company and predecessors, and that
any
disclosure or other use of such knowledge or information other than
for the sole
benefit of the Company would be wrongful and would cause
irreparable harm to the
Company. Both during and after the Term Company and Consultant will
refrain from
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<PAGE>
any acts or omissions that would reduce the value of such Company
Confidential
Information or Consultant Confidential Information to the
respective