Exhibit 10.1
EMPLOYMENT
AGREEMENT
This EMPLOYMENT AGREEMENT, dated as of February
9, 2007 (this “ Agreement ”), is entered into by
and between Reliant Partners LLC, a California limited liability
company (the “ Company ”), and Jason W. Kincaid
(the “ Executive ”).
WHEREAS, the Company and the Executive desire to
enter into an agreement to provide for the terms and conditions of
the Executive’s employment with the Company; and
WHEREAS, the success of the business of the
Company is dependent on the goodwill established by the Executive
with the Company’s customers and the public
generally.
NOW, THEREFORE, in consideration of the premises
and mutual covenants contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby mutually acknowledged, the Company and the Executive hereby
agree as follows:
Section 1 Duties; Term of
Employment.
(a) The Company hereby employs the Executive, and
the Executive hereby accepts employment with the Company, upon the
terms and conditions set forth in this Agreement.
(b) During the Employment Term (as defined below),
the Executive shall render such administrative, financial and other
executive and managerial services to the Company and Zone Mining
Limited, a Nevada corporation and the parent of the Company (the
“ Parent ”), as may be directed from time to
time by the Chief Executive Officer of the Parent. The Executive
shall have no authority to bind the Company or the Parent without
the prior approval of the Chief Executive Officer of the
Parent.
(c) During the Employment Term, the Executive shall
report to the Chief Executive Officer of the Parent and shall
devote his full business time, attention, skill and best efforts to
the performance of his duties under this Agreement (except for
permitted vacation periods and reasonable periods of illness or
other incapacity) and shall not engage in any other business or
occupation while employed by the Company. The Executive shall
perform his duties, responsibilities and functions to the Company
to the best of his abilities in a diligent, trustworthy,
professional and efficient manner and shall comply with the
policies and procedures of the Company in all material respects.
Notwithstanding the foregoing, nothing herein shall preclude the
Executive from: (i) serving, with the prior written consent of the
Parent’s board of directors (the “ Parent Board
”), as a member of the board of directors or advisory boards
(or their equivalents in the case of a non-corporate entity) of
non-competing businesses and charitable organizations; (ii)
engaging in charitable activities and community affairs; and (iii)
managing his personal investments and affairs, including
maintaining the Executive’s passive investment and ownership
of minority interests in Mingle, LLC and West East, LLC, provided
the Executive may not increase the ownership interests in such
entities or actively participate in the management of such
entities, or any other entities constituting a competing business
without the prior written consent of the Parent’s board of
directors, in any capacity; provided , however , that
the activities set out in clauses (i), (ii) and (iii) shall be
limited by the Executive so as not to materially interfere,
individually or in the aggregate, with the performance of his
duties and responsibilities hereunder.
(d) During the Employment Term, and at all times
during the Executive’s employment with the Company, the
Executive will be employed by the Company on an at-will basis,
which means that either the Executive or the Company can terminate
the employment relationship at any time, with or without notice,
and for any reason, with or without good cause, or for no
reason.
(e) Unless sooner terminated as provided in
Section 3 hereof, the Executive’s employment under
this Agreement shall commence as of the Effective Date (as defined
below) and will end twelve (12) months from the Effective Date (the
“ Employment Term ”). The Employment Term shall
be renewable for additional twelve (12) month terms upon the mutual
written consent of the Company and the Executive.
Section 2 Compensation and
Benefits.
(a)
Base Salary
. During the Employment Term, the
Company shall pay to the Executive a base salary of $200,000 per
annum (the “ Base Salary ”), subject to
applicable withholding, which shall be payable by the Company in
regular installments in accordance with the Company’s normal
payroll practices in effect from time to time.
(b)
Benefits . During the Employment Term, the Executive
shall be entitled to (i) participate in all benefits and benefit
plans which are available from time to time to employees of the
Company, subject in each case to the generally applicable terms and
conditions of the applicable plan or program and
(ii) four (4) weeks of paid vacation each calendar year in
accordance with the Company’s policies in effect from time to
time. Vacation must be taken at times that will not be disruptive
to the business of the Company and in accordance with the
Company’s vacation policy in effect from time to
time.
(c)
Reimbursement of
Expenses . During the
Employment Term, the Company shall reimburse the Executive for all
reasonable business expenses incurred by him in the course of
performing his duties under this Agreement which are consistent
with the Company’s policies in effect from time to time with
respect to travel, entertainment and other business expenses,
subject to the Company’s requirements with respect to
reporting and documenting of such expenses.
Section 3 Payments Upon
Termination.
(a) This Section 3 provides for certain
payments to the Executive in the event of termination. The
provisions of this Section 3 do not in any way affect the
Executive’s at-will status as provided in Section 1(e)
. The Executive is entitled to no other payments or benefits upon
termination except as expressly stated in this Section 3 .
The Executive acknowledges and agrees that he will have no claim
for any payments, compensation, benefits or damages, with respect
to any additional amounts other than as provided in this Section
3 .
(b)
Termination by the Company for
Cause .
(1) If the Company terminates the
Executive’s employment for “ Cause ” as
defined below, the Executive is entitled to, and the Company will
pay to Executive, the following only: (a) the Executive’s
Base Salary earned and accrued through the date of termination; (b)
all accrued and unused vacation time through the date of
termination, and any other form of unused and accrued benefits
through the date of termination which under Company policy and/or
applicable law must be paid to the Executive upon termination, if
any; and (c) upon submission of proper proof, any reimbursement for
expenses incurred, but not yet paid to the Executive, if any. The
foregoing items listed in this Section 3(b)(1)(a)-(c) shall
be referred to herein as the “ Accrued Benefits
.”
(2) The term “ Cause ” shall
mean, as determined by the Parent Board: (i) the commission by the
Executive of an act of theft, fraud, embezzlement, falsification of
the Company or customer documents, misappropriation of funds or
other assets of the Company, or other acts of dishonesty or
misconduct involving the property or affairs of the Company or the
carrying out of the Executive’s duties; (ii) the conviction
of the Executive (by trial, upon a plea or otherwise) or the
admission of guilt by the Executive, of any felony or criminal act
of moral turpitude; (iii) the failure by the Executive to
substantially perform his duties or responsibilities under this
Agreement or follow a reasonable instruction of the Parent or the
Parent Board, provided that if such failure is capable of cure, the
Executive is given written notice of any such failure and fails to
remedy the same within ten (10) days of receipt of such notice;
(iv) if the Executive commits a material breach or material
non-observance of any of the terms or conditions of this Agreement
or any Exhibit hereto, provided that if such breach or
non-observance is capable of cure, the Executive is given written
notice of any such breach or non-observance and fails to remedy the
same within ten (10) days of receipt of such notice; (v) if the
Executive breaches any fiduciary duty to the Company or violates
any other contractual, statutory, common law or other legal duty to
the Company, in a manner that has a material adverse effect on the
Company and/or its subsidiaries or their respective properties or
assets; or (vi) gross negligence or willful misconduct by the
Executive in the performance of his duties.
(3) In the event of termination by the Company for
Cause, which may occur with or without notice, the Company will
inform the Executive in writing that the termination is or was for
Cause.
(c)
Termination by the Company
Without Cause . If the
Company terminates the Executive’s employment without Cause,
as defined above, the Executive is entitled to, and the Company
will pay to Executive, the following only:
(1) The Accrued Benefits.
(2) Payments equal to the Executive’s Base
Salary for the remainder of the Employment Term, paid in accordance
with the Company’s normal payroll practices over the
remainder of the Employment Term.
(3) Through the remainder of the Employment Term or
until the date upon which the Executive accepts new employment with
health care coverage, whichever is earlier, monthly reimbursements
for any payments actually made by the Executive for health
insurance, which reimbursements are not to exceed the amount that
the Executive would be required to pay under Consolidated Omnibus
Budget Reconciliation Act (“ COBRA ”) if he were
to elect to obtain health insurance under COBRA (with the
understanding that, during such period, the Executive is free to
purchase health insurance under COBRA, to the extent available, or
otherwise, or not at all, but that he is entitled only to
reimbursement for amounts actually paid by him for health
insurance, within the limits stated above) (referred to herein as
the “ Health Severance ”).
(4) To the extent permissible under the
Company’s then current benefit plans, as in effect on the
date of such termination, the Company shall provide or arrange to
provide the Executive continuation of the Executive’s
benefits under those benefit plans for the remainder of the
Employment Term.
(5) The Executive shall only be entitled to receive
the severance payments and benefits listed in Section 3(c)(2)-
( 4) if the Executive executes, delivers and
does not revoke a general release of claims against the Company in
the form and substance acceptable to the Company, and continues to
adhere to and not breach the provisions of Sections 4 and
5 of this Agreement.
(d)
Termination by the Company upon
Death or Disability .
(1) If the Executive’s employment
terminates due to his death, or the Company terminates the
Executive’s employment due to “Disability” as
defined below, the Executive (or his Estate or personal
representative, as applicable) is entitled to receive only the
Accrued Benefits.
(2) The term “ Disability ” shall
mean the Executive, due to physical or mental disability, is unable
to perform the essential functions of his position with the
Company, with or without reasonable accommodation for either (a)
the immediately preceding ninety (90) days or (b) one hundred and
fifty days in any one year period, in accordance with the Americans
with Disabilities Act, the California Fair Employment and Housing
Act, and any other disability laws.
(3) In the event of termination by the Company due
to Disability, which may occur with or without notice, the Company
will inform the Executive in writing that the termination was due
to Disability as defined in this Agreement.
(e)
Voluntary Termination by the
Executive or Expiration .
If the Executive terminates his employment for any reason, or if
the Agreement terminates pursuant to Section 1(e) , the
Executive is entitled to receive only the Accrued
Benefits.
Section 4 Confidentiality;
Exclusive Property.
(a)
Confidentiality
. The Executive recognizes that the
services to be performed by him hereunder are special, unique and
extraordinary in that, by reason of his employment hereunder and
his past employment with the Company, he may acquire or has
acquired Confidential Information (as defined below) concerning the
operations of the Company, the Parent, their respective
subsidiaries or affiliates, the use or disclosure of which could
cause the Company, the Parent, their respective subsidiaries or
affiliates substantial loss and damages which could not be readily
calculated and for which no remedy at law would be adequate.
Accordingly, the Executive covenants and agrees with the Company
that he will not at any time, except in performance of his
obligations to the Company hereunder or with the prior written
consent of the Parent Board, directly or indirectly, disclose any
secret or Confidential Information, or any Trade Secret (as defined
below), that he may learn or has learned by reason of his
association with the Company, the Parent or any of their respective
subsidiaries or any predecessors to the Business (as defined
below), or use any such information to the detriment of the Company
or any of its subsidiaries or any of its affiliates. The term
“ Confidential Information ” includes, without
limitation, information not previously disclosed to the public or
to the trade by the management of the Company or the Parent with
respect to the Company, the Parent or their respective
subsidiaries’ or affiliates’ business plans, prospects
and opportunities, the identity of customers, vendors, suppliers,
distributors or other trade related business relations of the
Company, the Parent or any of their respective subsidiaries or
affiliates (whether past, present or prospective), information
regarding operational strengths and weaknesses, trade secrets,
know-how and other intellectual property, systems, procedures,
manuals, confidential reports, product price lists, marketing plans
or strategies, and financial information. The Executive understands
and agrees that the rights and obligations set forth in this
Section 4(a) are perpetual and, in any case, shall extend
beyond the Executive’s employment hereunder.