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EDGARONLINESUNWORKS,INC.(SUNW)8K/A3/3/2015
Exhibit10.1
EMPLOYMENTAGREEMENT
ThisEMPLOYMENTAGREEMENT(thisAgreement)ismadeasofthe28 thdayofFebruary2015,byandbetweenMD
Energy,Inc.,aCaliforniacorporation(theCompany),andDannyMitchell,anindividual(Employee),andismadewithrespect
tothefollowingfacts:
RECITALS
A.TheCompanyandtheEmployeewishtoensurethattheCompanywillreceivethebenefitofEmployeesloyalty
andserviceduringEmployeestenureandthattheEmployeewillbeappropriatelytreatedandcompensatedforservicesrendered..
B.ThepartieshaveenteredintothisAgreementforthepurposeofsettingforththetermsofemploymentofthe
EmployeebytheCompany.
NOW,THEREFORE,inconsiderationofthepremisesandmutualcovenantshereincontained,THEPARTIESHERETO
AGREEASFOLLOWS:
1.EmploymentofEmployeeandDuties.TheCompanyherebyhiresEmployeeandEmployeeherebyaccepts
employmentuponthetermsandconditionsdescribedinthisAgreement.TheEmployeeshallbethePresidentandChiefExecutive
OfficeroftheCompanywiththeresponsibilityformanagingtheCompanysoperations.Subjectto(a)thegeneralsupervisionofthe
BoardofDirectors,and(b)theEmployeesdutytoreporttotheBoardofDirectorsperiodically,asspecifiedbythemfromtimeto
time,EmployeeshallhavealloftheauthoritytoperformhisemploymentdutiesfortheCompany.
2.TimeandEffort.Employeeagreestodevotehisfullworkingtimeandattentiontothemanagementofthe
Companysbusinessaffairs,theimplementationofitsstrategicplan,asdeterminedbytheBoardofDirectors,andthefulfillmentof
hisdutiesandresponsibilitiesastheCompanysPresidentandChiefExecutiveOfficer.Expenditureofareasonableamountoftime
forpersonalmattersandbusinessandcharitableactivitiesshallnotbedeemedtobeabreachofthisAgreement,providedthatthose
activitiesdonotmateriallyinterferewiththeservicesrequiredtoberenderedtotheCompanyunderthisAgreement.
3.TheCompanysAuthority.EmployeeagreestocomplywiththeCompanysreasonablerulesandregulationsas
adopted by the Companys Board of Directors regarding performance of his duties, and to carry out and perform those orders,
directionsandpoliciesestablishedbytheCompanywithrespecttohisengagement.EmployeeshallpromptlynotifytheCompanys
BoardofDirectorsofanyobjectionhehastotheBoardsdirectivesandthereasonsforsuchobjection.
4.NoncompetitionbyEmployee.EmployeeissubjecttononcompetitionobligationspursuanttoSection3.1ofthat
certainAssetPurchaseAgreementofevendatebetweentheCompany,Employeeandothers.Upontheexpirationofthetermof
thoseobligations,andifEmployeeisthenemployedbytheCompany,thenthereafterandthroughouttheremainingtermofthis
Agreement, Employee shall not, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner,
stockholder (in a private company), corporate officer, director, or in any other individual or representative capacity, engage or
participate in any business that is in direct competition with the business of the Company or its affiliates. Furthermore, any
commissions,referralfeesorothercompensationpaidtoEmployeebyotherpayorsduringthetermofthisAgreementwillbethe
propertyoftheCompany,andtherefore,allsuchcompensationwillpromptlyberemittedbyEmployeetotheCompany.
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6.4RightstoInventionsandTradeSecrets.EmployeeherebyassignstoCompanyallright,titleand
interestinandtoanyideas,inventions,originalworksorauthorship,developments,improvementsortradesecretswhichEmployee
solelyorjointlyhasconceivedorreducedtopractice,orwillconceiveorreducetopractice,orcausetobeconceivedorreducedto
practiceduringhisemploymentwithCompany.AlloriginalworksofauthorshipwhicharemadebyEmployee(solelyorjointly
withothers)withinthescopeofEmployeesserviceshereunderandwhichareprotectablebycopyrightareworksmadeforhire,as
thattermisdefinedintheUnitedStatesCopyrightAct.
7.NoninterferenceandNonsolicitationCovenants.InfurtherreflectionoftheCompanysimportantinterestsinits
proprietary information and its trade, customer, vendor and employee relationships, Employee agrees that, during the 24 month
periodfollowingtheterminationofEmployeesemploymentwithCompanyforanyreason,includingwithoutlimitationEmployees
voluntaryresignationorinvoluntaryterminationwithorwithoutcause,Employeewillnotdirectlyorindirectly,fororonbehalfof
anyperson,firm,corporationorotherentity,(a)interferewithanycontractualorotherbusinessrelationshipsthatCompanyhaswith
anyofitscustomers,clients,serviceprovidersormaterialssuppliersasofthedateofEmployeesterminationofemployment,or(b)
solicitorinduceanyemployeeofCompanytoterminatehis/heremploymentrelationshipwithCompany.
8.Compensation. During the term of thisAgreement, the Company shall pay the following compensation to
Employee:
8.1AnnualCompensation.Employeeshallbepaidafixedsalaryofonehundredfiftythousanddollars
($150,000.00)peryear,whichwillbepayableintwoinstallmentspermonthof$6,250.00eachonthe5 th (forthelasthalfofthe
previousmonth)and20th(forthefirsthalfofthethencurrentmonth)dayofeachmonth,commencingforthefirstperiodafterthe
CommencementDateofthisAgreement.
8.2AdditionalCompensation.InadditiontothecompensationsetforthinSection8.1ofthisAgreement,
Employeemaybepaidabonusorbonusesduringeachyear,incash,inCompanyorparentcompanycommonstock,orinoptionsto
purchaseCompanyorparentcompanycommonstock,oracombinationofthemorotherwise,asdeterminedinthesolediscretionof
the Companys or parent companys Board of Directors based on such Boards evaluation of the Employees definable efforts,
accomplishmentsandsimilarcontributions.
8.3 Benefits.So long as Employee is employed by the Company, the Employee shall participate in
employee benefit plans comparable to those provided by Solar United Network, Inc., the Companys wholly owned subsidiary
(Sunworks),foritsemployeesservinginsimilaremploymentcapacities,asdeterminedfromtimetotimebytheboardofdirectors
oftheCompanyoranycompensationcommitteeoftheboardofdirectors,ifany,andontermsatleastasfavorabletoEmployeeasare
offeredtosuchotheremployees.
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9.OfficeandStaff.InordertoenableEmployeetoperformhisobligationsanddutiespursuanttothisAgreement,the
CompanyagreesthatitshallprovidesuitableofficespaceforEmployeeinRanchoCucamonga,California,orinanothercityinthe
State of California mutually agreed, together with all necessary and appropriate supporting staff and secretarial assistance,
equipment,stationery,booksandsupplies.Employeeagreesthattheofficespaceandsupportingstaffpresentlyinplaceissuitable
forthepurposesofthisAgreement.TheCompanyagreestoprovideatitsexpenseparkingforonevehiclebytheEmployeeatthe
Companysexecutiveoffices.
10.ReimbursementofExpenses.TheCompanyshallreimburseEmployeeforthereasonable(andpreapprovedby
theCompanyinwriting)travelandotherexpensesincurredbyEmployeeinconnectionwiththeperformanceofEmployeesduties
underthisAgreement.EmployeespreapprovedreimbursableexpensesshallbepaidbytheCompanyincashwithinareasonable
timeafterpresentmentbyEmployeeofanitemizedlistofinvoicessufficientlydescribingsuchexpenses.Allcompensationprovided
inSections8ofthisAgreementshallbesubjecttocustomarywithholdingtaxandotheremploymenttaxes,totheextentrequiredby
law.Expensereimbursementswillnotbesubjecttowithholding.
11.RightsInAndToInventionsAndPatents.
11.1DescriptionofPartiesRights.TheEmployeeagreesthatwithrespecttoanyinventionsmadebyhim
ortheCompanyduringthetermofthisAgreement,solelyorjointlywithothers,(i)whicharemadewiththeCompanysequipment,
supplies,facilities,tradesecretsortime,or(ii)whichrelatetothebusinessoftheCompanyortheCompanysactualordemonstrably
anticipated research or development, or (iii) which result from any work performed by the Employee for the Company, such
inventionsshallbelongtotheCompany.TheEmployeealsoagreesthattheCompanyshallhavetherighttokeepsuchinventionsas
tradesecrets,iftheCompanychooses.
11.2DisclosureRequirements.ForpurposesofthisAgreement,aninventionisdeemedtohavebeenmade
duringthetermofthisAgreementif,duringsuchperiod,theinventionwasconceivedorfirstactuallyreducedtopractice.Inorderto
permittheCompanytoclaimrightstowhichitmaybeentitled,theEmployeeagreestodisclosetotheCompanyinconfidencethe
natureofallpatentapplicationsfiledbytheEmployeeduringthetermofthisAgreement.
12.AssignabilityofBenefits.Excepttotheextentthatthisprovisionmaybecontrarytolaw,noassignment,pledge,
collateralizationorattachmentofanyofthebenefitsunderthisAgreementshallbevalidorrecognizedbytheCompany.Exceptas
providedbylaw,paymentprovidedforbythisAgreementshallnotbesubjecttoseizureforpaymentofanydebtsorjudgments
against the Employee, nor shall the Employee have any right to transfer, modify, anticipate or encumber any rights or benefits
hereunder provided that any stock issued by the Company to the Employee pursuant to thisAgreement shall not be subject to
Section14ofthisAgreement.
13.Notice.Allnoticesandothercommunicationsrequiredorpermittedhereundershallbeinwritingorintheformof
email, facsimile or letter to be given only during the recipients normal business hours unless arrangements have otherwise been
madetoreceivesuchnoticeoutsideofnormalbusinesshours,andcanbemailedbyregisteredorcertifiedmail,postageprepaid,or
otherwisedeliveredbyhand,messenger,emailorfacsimile(asprovidedabove)addressed(a)iftotheEmployee,attheaddressfor
suchEmployeesetforthonthesignaturepageheretooratsuchotheraddressassuchEmployeeshallhavefurnishedtotheCompany
inwritingor(b)iftotheCompany,toitsprincipalexecutiveofficesandaddressedtotheattentionoftheChairmanoftheBoard,orat
suchotheraddressastheCompanyshallhavefurnishedinwritingtotheEmployee.
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EDGARONLINESUNWORKS,INC.(SUNW)8K/A3/3/2015
IncaseoftheCompany:
MDEnergy,Inc.
c/oSolar3D,Inc.
26WestMissionAvenue,Suite8
SantaBarbara,CA93101
Attention:JamesB.Nelson,Chairman
TelephoneNumber:(206)9199981
FacsimileNumber:(805)4560397
EmailAddress:
IncaseoftheEmployee:
Theaddresslistedbelow
signaturetothisAgreement.
14.AttorneysFees.Intheeventthatanyofthepartiesmustresorttolegalactioninordertoenforcetheprovisionsof
thisAgreementortodefendsuchsuit,theprevailingpartyshallbeentitledtoreceivereimbursementfromthenonprevailingpartyfor
allreasonableattorneysfeesandallothercostsincurredincommencingordefendingsuchsuit.
15.EntireAgreement.ThisAgreementandthatcertainAssetPurchaseAgreement,datedFebruary27,2015(the
APA),byandbetweentheMDEnergy,LLC,theEmployee,Solar3D,Inc.andtheCompanypursuanttowhichtheCompany
acquiredsubstantiallyalloftheassetsofMDEnergy,LLC,embodytheentireunderstandingamongthepartiesandmergeallprior
discussions or communications among them, and no party shall be bound by any definitions, conditions, warranties, or
representationsotherthanasexpresslystatedinthisAgreementandtheAPAorassubsequentlysetforthinawritingsignedbythe
dulyauthorizedrepresentativesofallofthepartiestothisAgreement.
16.NoOralChangeAmendment.ThisAgreementmayonlybechangedormodifiedandanyprovisionhereofmay
onlybewaivedbyawritingsignedbythepartyagainstwhomenforcementofanywaiver,changeormodificationissought.This
Agreementmaybeamendedonlyinwritingbymutualconsentoftheparties.
17.Severability.IntheeventthatanyprovisionofthisAgreementshallbevoidorunenforceableforanyreason
whatsoever, then such provision shall be stricken and of no force and effect. The remaining provisions of thisAgreement shall,
however,continueinfullforceandeffect,andtotheextentrequired,shallbemodifiedtopreservetheirvalidity.
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18.ApplicableLaw.ThisAgreementshallbeconstruedasawholeandinaccordancewithitsfairmeaning.This
AgreementshallbeinterpretedinaccordancewiththelawsoftheStateofCalifornia.
19.SuccessorsandAssigns.EachcovenantandconditionofthisAgreementshallinuretothebenefitofandbe
bindinguponthepartieshereto,theirrespectiveheirs,personalrepresentatives,assignsandsuccessorsininterest.Withoutlimiting
thegeneralityoftheforegoingsentence,thisAgreementshallbebindinguponanysuccessortotheCompanywhetherbymerger,
reorganizationorotherwise.
INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedatefirstabovewritten.
COMPANY:MDENERGY,INC.
aCaliforniacorporation
By:/s/JamesB.Nelson
JamesB.Nelson,Chairman
EMPLOYEE:/s/DannyMitchell
DannyMitchell
StreetAddress
City,StateandZipCode
TelephoneNumber:
FacsimileNumber:
EmailAddress:
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