This employment agreement (“Agreement”) is effective as of March 19, 2007 (“Effective Date”), by and between Kreido Biofuels, Inc., a Nevada corporation located at 1140 Avenida Acaso, Camarillo, California 93012 and Kreido’s wholly-owned subsidiary, Kreido Laboratories, Inc. (collectively “Kreido” or the “Company”) and John M. Philpott, C.P.A., an individual (“Executive”).
Whereas Kreido wishes to employee Executive as its Vice President and Chief Accounting Officer and Executive wishes to be so employed;
Now, therefore, in consideration of the foregoing and good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree as follows:
Terms and Conditions
||Executive’s Duties;Title; Location. As of the Effective Date, Executive is employed as Kreido’s Vice President and Chief Accounting Officer under the terms and conditions below. Executive will report to the Company’s CEO. Executive’s duties include, without limitation, managing the Company’s budgeting, financial reporting, SEC filings, internal financial controls, Sarbanes Oxley compliance, developing all related systems and infrastructure to support the accounting function within the Company, and such other matters that are reasonable within the scope of Executive’s expertise. Executive shall dedicate his full-time efforts to Kreido’s business and shall work at Kreido’s Camarillo, California, office or such other location as Kreido deems appropriate; provided, however, that Executive shall not be required routinely to provide services outside of a reasonable commuting distance from the current Camarillo office except when traveling on Kreido business.|
||Term and Termination. The Term of this Agreement shall commence on March 19, 2007. The Term shall continue for one (1) year unless it is terminated earlier as provided below in Sections 6, 7 and 8.|
||Hours. The Executive’s normal days and hours of work shall coincide with the Company’s regular business hours. The nature of the Executive’s duties requires flexibility in the days and hours that the Executive must work, and is likely to require the Executive to work on other and additional days and hours.|
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4.1.1 Base Salary. Executive shall receive a base salary of $185,000 in accordance with Kreido’s regular payroll practices.
4.1.2 Bonus. So long as Executive is employed hereunder, Executive shall be entitled to participate in a performance-based executive bonus plan (“Bonus Plan”) that shall be promulgated by the Compensation Committee of the Company’s board of directors each fiscal year. The Bonus Plan will set forth three levels of target performance goals “TPGs” which, if achieved, will entitled the Executive to a bonus of either 20%, 35% or 50% of the Executive’s Base Salary. The TPGs will consist of a combination of goals for the Executive’s individual performance and the Company’s overall performance in a ratio of 75% Company performance and 25% individual Executive performance. Bonuses paid under the Bonus Plan, if any, will be paid annually within 60 days after the end of the fiscal year.
4.1.3. Stock Options. Upon the execution of this Agreement, Executive shall be entitled to participate in the Kreido Biofuels 2006 Equity Incentive Plan (“Plan”). Executive’s participation in the Plan shall be governed by the terms and conditions set forth in the applicable Plan documents. Capitalized words not defined in this Agreement but used in this Section shall have the meanings ascribed to them in the Plan.
||(a) Grant of Options. On the Effective Date, the Company will grant Executive an option to purchase 150,000 shares of the Company’s common voting stock under the Plan (the “Options”). Subsequently, the Executive shall be eligible for such additional grants of options and other permissible grants (collectively “Awards”) under the Plan as the Compensation Committee of the board of directors of the Company shall determine in its absolute discretion.|