Exhibit 10.1
Exhibit
10.1 Employment Agreement between the Company and John
Argo
EMPLOYMENT AGREEMENT
This Employment
Agreement (“ Agreement ”) is entered into by and
between OCTuS, Inc., a Nevada corporation with
principal offices at 719 Second Street, Suite 9, Davis, CA 95616
(“ OCTuS ” or the “ Company
”) and John Argo, an individual with primary residence at
1717 4 th
Ave., Sacramento, CA 95818-3027
(“ Employee ”) effective as of the 1st day of
April, 2009 (the “ Effective Date ”), as
follows:
AGREEMENT
1.
Employment . OCTuS wishes to employ Employee and Employee
agrees to provide services for OCTuS on the terms and conditions
set forth below.
2.
Employment; Scope of Employment . Employee shall be employed
as the Director of Energy Projects & Finance of OCTuS, and
shall have the authority, and the duties and responsibilities as
are assigned or modified by OCTuS’ Board of Directors,
provided, that such authority, and duties and responsibilities
shall be commensurate and consistent with Employee’s
position.
2.1
Best Efforts; Working Time . Employee agrees to devote
sufficient working time and best efforts to perform
Employee’s duties hereunder. There are three distinct time
periods through which the Employee will be full time and eligible
for full benefits.
During the
Initial Period, herein defined as that period of time from the
initiation of this Agreement until the Company has Funding or
Revenue sufficient to pay $5,000 per month to Employee, Employee
shall devote a minimum of 20 hours per week exclusively to Octus
and will accrue $5,000 as short term debt to the
Company.
During the
Second Period, herein defined as that period of time until the
Company has Funding or Revenue sufficient to pay $5,000 per month
to Employee, Employee shall receive $5,000 per month and shall work
exclusively with Octus as a full time Employee.
During the
Third Period, herein defined as that period of time until the
Company has Funding or Revenue sufficient to pay a full salary of
$10,000 per month, Employee shall receive $10,000 per month and be
eligible for bonus, benefits and stock options as they become
available.
2.2
Supervision and Direction of Services . All of
Employee’s services hereunder shall be under the supervision
and direction of the Board of Directors of OCTuS.
2.3
Rules . Employee shall be bound by all the policies, rules
and regulations of OCTuS now in force and by all such other
policies, rules and regulations as may be hereafter implemented and
shall faithfully observe and abide by the same. In the event that
there is any conflict between the terms of this Agreement and any
of OCTuS’ policies, rules and regulations, the terms of this
Agreement shall govern.
2.4
Exclusive Services . During the Term of
this Agreement and any extension of this Agreement, Employee shall
not, directly or indirectly, whether as a partner, employee,
creditor, shareholder, independent contractor or otherwise,
promote, participate or engage in any activity or other business
which is competitive with OCTuS’ business operations, with
the exception of Employee’s relationship with Bloo Solar,
Inc.; provided, however, that this provision shall not preclude or
prohibit Employee from holding or obtaining an indirect and passive
beneficial ownership, through a mutual fund or similar arrangement,
of up to one percent of any publicly-held company which is
competitive with OCTuS as long as Employee does not otherwise
promote, participate or engage in the business operations of such
company. Employee agrees that Employee shall not enter into an
agreement to establish, form, contract with or become employed by a
competing business of OCTuS while Employee is employed by
OCTuS.
2.5
Non-Solicitation . To the fullest extent permissible under
applicable law, Employee agrees that both during the term of this
Agreement and for a period of two (2) yearsfollowing termination of
this Agreement, Employee shall not take any action to induce
employees or independent contractors of OCTuS to sever their
relationship with OCTuS and accept an employment or an independent
contractor relationship with any other business.
3.
Term and Termination; Payments upon Termination .
3.1
Term and Termination. Unless earlier terminated as
described below, OCTuS hereby employs the Employee for a period
commencing on the Effective Date and ending thirty-six (36) months
from the Effective Date (the “ Term ”). The Term
shall be extended automatically for successive one-year terms
unless either party notifies the other party in writing at least
ninety (90) days prior to the expiration of the then-effective Term
of such party’s intention not to renew this
Agreement.
3.1.1
Termination for Cause . “ Cause
” for termination of Employee’s employment shall mean
the occurrence of any of the following:
(a) Employee
has breached a material term hereof, which remains uncured for
thirty (30) days after a written notice of breach (which notice
shall describe the particulars of Employee’s breach in
sufficient detail to allow Employee the reasonable opportunity to
cure the breach, if susceptible of being cured within such thirty
(30) day period) and written demand for performance are delivered
to Employee by the Board of Directors;
(b) Employee
has been grossly negligent or engaged in material willful or gross
misconduct in the performance of Employee’s
duties;
(c) Employee
has committed, as determined by the Board of Directors of OCTuS, or
has been convicted by a court of law of, fraud, moral turpitude,
embezzlement, theft, or dishonesty, or other similar criminal
conduct, and such misconduct is committed in connection with
Employee’s employment with OCTuS;
(d) Employee
has been convicted by a court of law of a felony involving fraud,
moral turpitude, embezzlement, theft, or dishonesty or other
similar criminal conduct;
(e) Habitual
misuse of alcohol or drugs; or
(f) Employee’s
breach of the Nondisclosure and Noncompetition Agreement attached
hereto as Schedule 1, and described in Section 6 herein.
3.1.2
Termination for Good Reason .
(a) Employee
may terminate this Agreement for “Good Reason.” As used
herein, “Good Reason” means (i) any material breach by
OCTuS of this Agreement; (ii) the assignment of duties to Employee
by OCTuS that are not consistent or commensurate with and
Employee’s position as Director, Energy Projects &
Finance of OCTuS (other than any duties that are consistent and
commensurate with a higher position, and not including any
reduction in Employee’s duties during any investigation or
proceedings initiated by OCTuS in good faith pursuant to Section
3.1.1 with regard to a possible termination of Employee for Cause);
(iii) the relocation of Employee’s primary office location to
outside of the initial metropolitan area Employee is established in
without Employee’s prior consent; (iv) the reduction of
Employee’s Base Salary; (v)
OCTuS’ termination of Employee’s status as
Director, Energy Projects & Finance of OCTuS.
(b) In
order to terminate this Agreement for Good Reason, Employee shall
provide OCTuS with (i) written notice of the Good Reason (which
notice shall describe the particulars of OCTuS’ breach in
sufficient detail to allow OCTuS the reasonable opportunity to
remedy or eliminate the Good Reason(s) if susceptible of being
remedied or eliminated); and (ii) shall allow OCTuS thirty (30)
days within which to remedy or eliminate the Good Reason(s). In the
event that Employee provides such notice and OCTuS fails to remedy
or eliminate the Good Reason(s) within such thirty-day period,
Employee shall be entitled to provide OCTuS with written notice (of
not less that thirty (30) days) that Employee is terminating this
Agreement as a result of such Good Reason(s).
3.1.3
Termination Other Than for Cause or Good Reason
. OCTuS may terminate Employee’s employment at any
time, without Cause, upon written notice to Employee.
3.2
Payments upon Termination .
3.2.1
For Cause or Voluntary Termination . Following a
termination of this Agreement by OCTuS for Cause, or a
Voluntary Termination by Employee, or any other termination by
Employee other than for Good Reason or due to Employee’s
death, Employee shall be entitled to receive in cash payment (less
normal and customary deductions and withholdings) an amount equal
to all accrued but unpaid compensation (including accrued but
unused vacation leave) as of the date of such
termination.
3.2.2
Without Cause . Following any termination of this
Agreement by OCTuS other than for Cause, or a termination by
Employee for Good Reason or due to Employee’s death, Employee
(or Employee’s estate) shall be entitled to receive in cash
payment an amount equal to all previously accrued but unpaid
compensation (including accrued but unused vacation leave) as of
the date of such termination, and a lump sum payment (less normal
and customary deductions and withholdings) equal to the amount of
Base Salary that Employee would have earned if Employee had
remained employed with OCTuS for three months past the date of
termination during the initial period and period two as defined in
section 2.1 and for six months past the date of termination during
and subsequent to period three as defined in section
2.1.
3.2.3 Section
409A. It is intended that this Agreement will comply
with Section 409A of the Internal Revenue Code (and any regulations
and guidelines issued thereunder) to the extent the Agreement is
subject thereto, and the Agreement shall be interpreted on a basis
consistent with such intent. If an amendment to the
Agreement is necessary in order for it to comply with Section 409A,
the parties hereto will negotiate in good faith to amend the
Agreement in a manner that preserves the original intent of the
parties to the extent reasonably possible.
4.
Compensation; Benefits .
4.1
Salary. Upon the initiation of Period Three as
defined in Section 2.1, Employee shall be paid a Base Salary of One
Hundred Twenty thousand dollars ($120,000) per year, as adjusted
pursuant to this Section 4.1 (“Base Salary”). The Base
Salary shall be subject to normal payroll withholdings and
OCTuS’ standard payroll practices. On the first anniversary
of the Effective Date and each anniversary date thereafter,
Employee’s Base Salary shall be increased annually by a
minimum of a cost of living factor determined as follows: (i)
Employee’s Base Salary as of the last day of the prior
Contract Year shall be multiplied by a fraction equal to (A) the
published Consumer Price Index selected by OCTuS
(“CPI”) for the first day of the new Contract Year
(“New Year”), divided by (B) the CPI for the first day
of the Contract Year immediately preceding such New Year, and (ii)
the resulting product shall be added to Employee’s Base
Salary, and shall be the Base Salary for the New Year.
4.2
Bonus Amounts . Employee shall be eligible to
participate in any OCTuS bonus program that is applicable to
officers of OCTuS as may be adopted and in effect from time to time
(subject to the terms and conditions of any such
program). In addition, Employee shall be eligible for an
annual discretionary bonus of up to thirty percent (30%) of
Employee’s Base Salary, as then in effect pursuant to Section
4.1 (and pro-rated for any partial year), as determined by the
OCTuS Compensation Committee or Board of Directors.
4.3
Stock; Share Grant . OCTuS shall grant and issue
to Employee upon the execution of this Agreement Two Hundred Fifty
Thousand (250,000) Common Shares, such shares to be deemed granted
in, pursuant to the terms and conditions set forth in a separate
Restricted Stock Purchase Agreement entered into by Employee and
OCTuS.
4.4
Stock Options. Employee shall be eligible
to receive stock options and other awards in accordance with the
company’s Employee Stock Option Plan, in amounts to be
determined by the Company’s compensation committee or other
administrator of the plan.
4.5
Vacation and other Standard Benefits. Employee shall be
entitled to three (3) weeks of paid vacation time per
year. Employee may not accrue vacation time in excess of
such three (3) week maximum. Accrual of vacation time
shall be subject to the terms and conditions of OCTuS’
vacation policy. Employee shall be entitled to health
benefits in accordance with OCTuS’ standard
policies. In addition, Employee is entitled to paid
holidays, sick leave and other benefits in accordance with
OCTuS’ standard policies.
4.6
Business Expenses . Employee shall be reimbursed
for reasonable business expenses which Employee incurs in the
performance of Employee’s duties hereunder, in accordance
with OCTuS’ standard reimbursement policies.
4.7
Education and Certification Expenses. OCTuS will
fund the completion of a Certified Energy Manager credential on
behalf of Employee.
5.
Employment Information . Employee represents and
warrants to OCTuS that information provided by Employee in
connection with Employee’s employment and any supplemental
information provided to OCTuS is, to the best of Employee’s
knowledge and information after good faith diligence and
investigation, complete, true and materially correct. Employee has
not omitted any information that is necessary to evaluate the
information provided by Employee to OCTuS. Employee shall promptly
notify OCTuS of any change in the accuracy or completeness of all
such information.
6.
Trade Secrets . Employee acknowledges that OCTuS
will go to great time and expense to develop customers and to
develop procedures and processes for development of products and
services and the sales of products and services. Such
procedures and processes in addition to various other types of
proprietary information are included as part of the
“confidential information” described in the
“Nondisclosure and Noncompetition Agreement” attached
hereto as Exhibit A . Employee agrees to execute
OCTuS’ Nondisclosure and Noncompetition Agreement
contemporaneously with the execution of this Agreement and
employment.
7.
Remedies for Breach of Covenant Regarding Confidentiality
. The parties agree that the breach by Employee of any
covenants contained in Sections 2.4, 2.5, and 6 will result in
immediate and irreparable injury to OCTuS. In the event of any
breach by Employee of the covenants contained in Sections 2.4, 2.5,
or 6, OCTuS shall be entit