EXHIBIT 10.25
EMPLOYMENT
AGREEMENT
This Employment Agreement,
Dated as of the Effective Date of Merger (as Merger is defined in
Section 1.01 below), between Propell Corporation, a Delaware
Corporation (“Company”) with its principal place of
business located at 7703 Kingspointe Parkway, Suite 300, Orlando,
Florida 32819, and Steven Rhodes (“Employee”) with a
residence at [____________], in consideration of the mutual
promises made herein, recites and provides as follows:
WHEREAS, Company
desires to retain the services of Employee on the terms and
conditions set forth herein; and
WHEREAS , Employee
desires to be employed by the Company on the terms and conditions
set forth herein;
NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants
herein contained, Company and Employee agree as follows:
ARTICLE 1. TERM
OF EMPLOYMENT
Specified Period
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1.01
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Company employs Employee and Employee accepts
employment with Company for a period of three (3) years (36 months)
beginning on the Effective Date of the Merger of Company with
Crystal Magic, Inc., (currently expected to occur in April 2008),
and terminating on the same date in 2011. If the parties
do not execute a new written agreement upon expiration of this
Agreement, the employment of Employee shall continue on an at-will
basis.
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“Employment
Term” Defined
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1.02
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“Employment Term” refers to the
entire period of employment of Employee by Company, whether for the
periods provided above, or whether terminated earlier as
hereinafter provided or extended by mutual agreement
between Company and Employee.
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ARTICLE
2. DUTIES AND OBLIGATIONS OF EMPLOYEE
General Duties
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2.01
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Employee shall serve as the Chief Financial
Officer (CFO) of Propell Corporation as well as President of its
Crystal Magic subsidiary. In his capacity as CFO of
Propell Corporation, Employee shall do and perform all services,
acts, or things necessary or advisable as CFO of Propell
Corporation, and such other roles of similar responsibility as the
Company may see fit; provided however that the roles and
responsibilities assigned shall be executive in nature and
scope. Employee shall be based in Company’s
Orlando, Florida office. Any change or relocation of the
Orlando, Florida office, further than fifty (50) miles, shall be
considered “relocation” pursuant to Section 7.02 (c)
below.
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Board of Directors
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2.02
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Employee shall also serve on the Board of
Directors of Company. Any involuntary removal of
Employee from the Board of Directors shall allow Employee to
terminate this Agreement “For Good Reason” pursuant to
Section 7.02 below.
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Outside Employment
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2.03
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Employee shall not engage in outside
employment that interferes with any of his duties under this
Agreement.
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Competitive
Activities
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2.04
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During the term of this contract Employee
shall not, directly or indirectly, either as an employee, company
consultant, agent, principal, partner, stockholder, corporate
officer, director, or in any other individual or representative
capacity, engage or participate in any business that is in
competition with the business of Company and/or its
subsidiaries. Employee shall not be precluded from
engaging in investment activities of a personal nature. Employee
shall not be precluded from accepting Board of Directors positions
with other for profit business entities not in competition with the
Company, so long as Employee obtains the written permission from
the Board of Directors, which written permission shall not be
unreasonably withheld.
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2.05
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Employee, at all times during the performance
of this Agreement, shall strictly adhere to and obey all the rules
and regulations now in effect or as subsequently modified governing
the conduct of employees of Company and its subsidiaries, to the
extent that those rules and regulations are approved by the Board
of Directors and are not inconsistent with Employee’s rights
and obligations under this Agreement. In the event that any rule or
regulation conflicts with this Agreement, this Agreement shall
control.
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ARTICLE
3. COMPENSATION OF EMPLOYEE
Annual Salary
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3.01
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(a)
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As compensation for the services to be
performed hereunder, Employee shall receive a salary at the rate of
One Hundred and Sixty Thousand Dollars ($160,000.00) per annum,
payable in equal installments on a bi-weekly basis.
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(b)
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Employee shall receive such annual increases
in salary, if any, as may be determined by Company’s Board of
Directors, in its sole discretion.
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Discretionary Bonus
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3.02
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In addition to the Employee’s Annual
Salary, the Board of Directors of Company may, in its sole
discretion, award to Employee bonus(es) in an amount, if any, in
the Board’s sole discretion
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Stock
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3.03
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Company hereby grants to Employee an option
to purchase, One Hundred Thousand (100,000) shares of common stock
of the Company at the purchase/exercise price as set forth below
and pursuant to the terms of the Propell Corporation 2008 Stock
Option Plan (“SOP”), a copy of which shall be given to
Employee. It is the intent that both the SOP and
the grant to Employee of Options shall be approved at the first
Board of Directors meeting after the Merger.
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(a)
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This Option may be exercised only with
respect to the portion of stock that is vested in Employee. Except
as set forth in Section 3.03(b) below, Employee’s right to
exercise this option shall be vested in annual increments beginning
with the first anniversary date of Employee’s employment
according to the following vesting schedule:
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(i)
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On the first anniversary date of
Employee’s employment, 12/36 ths of the Option
shares shall vest; and
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(ii)
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On the second anniversary date of
Employee’s employment, an additional 12/36 ths of
Option shares shall vest; and
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(iii)
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On the third anniversary date of
Employee’s employment, the remaining 12/36 ths of
the Option shares shall vest.
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(b)
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Notwithstanding the above, after the first
anniversary date of Employee’s employment, in the event (i)
Employee is terminated without Cause, (ii) Employee terminates for
Good Reason or (iii) the Employment Term ends without renewal or
extension, Employee shall be entitled to additional vesting in the
amount of 1/36 th for each month of employment completed
after the most recent anniversary date of employment. In such
event, Employee shall have ninety (90) days after the date of
termination or non-renewal or extension in which to
purchase/exercise any such Option(s).
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(c)
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The purchase price shall be the fair market
value of the Company’s common stock as determined by the
first Five Hundred Thousand Dollars ($500,000) in capital invested
after the Merger is effective.
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(d)
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This Option is not assignable and may
only be exercised by Employee during the term of employment under
this Agreement except as set forth above in Section 3.03(b).
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Vacation
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3.04
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During the Employment Term, Employee shall be
entitled to fifteen (15) days paid vacation per year, which may be
used in accordance with the policies, programs and practices of
Company, which are in effect generally from time to time with
respect to other peer executives of Company.
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3.05
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During the Employment Term, Employee shall be
entitled to paid sick leave in accordance with the policies,
programs and practices of Company which are in effect with respect
to other peer executives of Company.
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Savings and Retirement
Plans
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3.06
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During the Employment Term, Employee shall be
entitled to participate in all savings and retirement plans to the
extent applicable generally to other peer executives of Company,
including any 401(k) plan maintained by Company, if any.
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Benefit Plans
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3.07
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During the Employment Term, the Employee
and/or the Employee’s family and dependents, as the case may
be, shall be eligible for participation in and shall receive all
benefits under all welfare benefit plans provided by Company
(including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, and
accidental death and travel accident insurance plans) to the extent
applicable generally to other peer executives of Company.
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ARTICLE
4. BUSINESS EXPENSES
Travel, Entertainment, and
Other Expenses
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4.01
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It is recognized and agreed by the Parties to
this Agreement that in connection with the services to be performed
for Company, Employee will be obliged to expend money for travel,
entertainment of customers, gifts, and similar business
expenses. Employee is authorized to incur reasonable
business expenses for promoting the business of Company, in
accordance with the policies, practices and procedures of
Company.
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Reimbursement of Business
Expenses
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4.02
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(a)
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Company shall promptly reimburse Employee for
all reasonable business expenses incurred by Employee in connection
with the business of Company.
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(b)
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Each such expenditure shall be reimbursable
only if it is of a nature qualifying it as a proper deduction on
the federal and state income tax return of Company.
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(c)
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Each such expenditure shall be reimbursable
only if Employee furnishes to Company adequate records and other
documentary evidence required by federal and state statutes and
regulations issued by the appropriate taxing authorities for the
substantiation of each such expenditure as an income tax
deduction.
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ARTICLE
5. PROPERTY RIGHTS OF THE PARTIES
TRADE SECRETS /
CONFIDENTIAL INFORMATION
Confidential
Information
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5.01
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As used in this Agreement “Confidential
Information” includes, without limitation, [design
information, manufacturing information, business, financial, and
technical information, sales and processing information, product
information, customers, customer lists, vendors, vendor lists,
pricing information, corporation and personal business contact and
relationships, corporation and personal business opportunities,
software, computer disks or files, or any other electronic
information of any kind, Rolodex cards or other lists of names,
addresses or telephone numbers, financial information, projects,
potential projects, current projects, projects in development and
future projects, forecasts, plans, contracts, releases, and other
documents, materials or writings that belong to Company, including
those which are prepared or created by Employee or come into the
possession of Employee by any means or manner and which relate
directly or indirectly to Company, and each of its owners,
predecessors, successors, subsidiaries, affiliates, and all of its
shareholders, directors and officers (all of the above collectively
referred to as “Confidential
Information”). Confidential Information includes
information developed by Employee in the course of Employee’s
services for Company for the benefit of Company, as well as other
Confidential Information to which Employee may have access in
connection with Employee’s services. Confidential
Information also includes the confidential information of other
individuals or entities with which Company has a business
relationship.
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Duty of
Confidentiality
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5.02
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Employee will maintain in confidence and will
not, directly or indirectly, disclose or use (or allow others
working with E
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