Employee Settlement Agreement Guidance

employee settlement agreement

disability

board breach of fiduciarty to me 32 year funding ceo

Kevin Schmidt Critical dates and information Born */*/* Albuquerque, NM Robert E Lee High School Midland TX graduated * BBA Business Administration Petroleum Land Management * Diagnosed * with early onset Parkinsons Work history with Enertia Software and Enertech Information Systems *-* I joined Enertech Information Systems, Inc in partnership October * became employed as a software salesman until I acquired *% from Jean Junker, Midland, TX. I was Chairman, CEO and President by *. Enertech Information Systems, Inc. A Texas C Corporation, located in Midland Texas at * W. Missouri *. Enertech is in the business of software development for the Upstream and certain Midstream Oil and Gas Business. I took a one-man software development company and worked with a systems integration partner to implement computer networks and software to automate the Oil and Gas Industry. In the beginning there were over * vendors competing in this space in the US. I acquired *% of the rights in Enertech Information Systems, Inc. Subsequently I granted equity to Kent C. VanderHeiden and Kala D Schmidt, my wife. Although her shares were granted to her a few years later to hold in her name. At the time of these grants an entry was made into the Enertech Information Systems, Inc corporate minutes that Kevin Schmidt would be compensated for these license rights by K3 Software, LLC. No additional non-proportional payment was ever made. Critical Item: When we made these equity changes we made an entry in the Corporate minutes that Kevin E. Schmidt granted ownership in the software source code to Enertech Information Systems, Inc. We also founded Enertia Software, LLC a Texas LLC and K3 Software, LLC. Enertia Software, LLCs was established for the purpose to create a DBA for Enertech Information Systems, Inc so that we could re-brand existing DOS computer products and create a new Windows SQL platform solution. K3 Software became the Royalty distribution entity when Enertech DBA Enertia Software, LLC transacted certain business transactions with customers. These transactions we License fees collected, software rentals paid for use of a “hosted version” of the software and for maintenance fees. These payments were the largest part of the founder’s income and were set at the following rates upon termination of my employment: *% of Gross License fee. Millions of dollars a year were licensed by customers. *% of license fee maintenance sales. Maintenance fees were a percentage of the original license fee charged to all licensed customers. The system was unique in the industry by design so that all of every customer’s enhancement we released at least annually to the customers paying maintenance. All customers did and if any customer ceased paying maintenance They were helped strictly on s fee basis unless they paid a fee t ore-establish maintenance and pay a another fee that caught prior maintenance unpaid up to date. Maintenance fees also had an adjustment factor that was generally *% of the total license maintenance fee per annum. So basically, we received maintenance fees of *% for each new year plus any new customer maintenance fees. These fees in * exceeded $*,*,* adding over $*.* to gross K3 royalties for the year. My Claim In * I was diagnosed with early onset Parkinson’s Disease at the Mayo Clinic in Phoenix, Arizona. At that time, I informed all the board members immediately of my condition. There were no secrets about my condition but there were also no considerations offered and no requests to inquire about my health ever made. I worked for * more years after diagnosis, and we experienced the most significant revenue in the company’s history with individual contract values exceeding $*,*,*. We had over * employees in * locations I had established. We had very profitable cumulative revenues in excess of $* million. Medication for my Parkinson’s Disease caused me to engage in certain risky behaviors that led to my divorce from Kala D Schmidt who was fully employed by that time as Sr VP Support Services. I remarried and I remain married to Amy Varra Schmidt today in Lafayette, Co. In * Kent VanDerheiden sent an open letter to the board questioning why I was still Chairman and CEO for life. He had previously spent a year of final employment and was only involved as a shareholder at the time not doing and coding for the firm. He attacked my decision making a guidance of the company aggressively and it was a blindsided move with no support shown for me from the board. However, may Parkinson’s was significantly affecting my mental state by this time. Recognizably evident by my reaction to the letter and missing support from the board. My response was an irrational resignation from my position I had worked so hard to build. There was no buy-sell provision in the operating agreement as it was boiler-plate * or some ancient form. I had no attorney. I wrote the letter without Amy seeing it and emailed it to the company and to the board. The existing board made no recommendation of any kind to me. They wanted my shares and saw mee as a minority shareholder in Texas and made no effort to help me protect my interests they took for themselves. In Fact, my board never recommended to me to get a lawyer. No action was ever taken by any board member to help me in any way. I had no reason to assume they would treat me bad as the company had distributed millions of dollars to their benefit in royalties and dividends. However their first action was to suspend the royalty payments, proving me maximum painand mental anguish They conveniently paid the suspended payments but the accounting was not provided in detail or audited format. They never inquired about my health or did anything other than to make sure that I transitioned my projects to existing personnel. In one phone call with Brad Bartek and Kim Hatfield just after the letter I sent Kim Hatfield, without being in a board meeting, accepted my resignation and had Brad Bartek second the item. Kim then offered me a contract for 1 year for $*,* to consult for their benefit but I told him I wanted to consider it so he rescinded it immediately. More manipulation. External Board members and investors Kim Hatfield joined my board when Crawley Petroleum Corporation, OKC OK, in * when Crawley bought founder’s shares for cash and debt and subsequently made a second round investment a few years later. In * Chase Oil Group from Atresia NM made an investment in the company for founder’s shares and Brad Bartek who also was involved in this equity position joined the board. Both of these investors were customers and both received either free services or heavily discounted services and full priority support. We were truly involved in their company as a service provider and developed a relationship of trust. Brad took me and a group fishing on Mack’s corporate jet to British Columbia for many years at great expense and we spent a lot of time together many times in places that I was criticized for later. Brad Bartek was even the executor of my will for several years. I took his family on a very extravagant cruise and paid for a special anniversary trip to Little Dix Bay in the Caribbean for he and his wife. We supported everything the Chase Oil group did in terms of Golf Tournaments and events for over 20 years. Robert Chase, son of Mack Chase went so far as to make a deal-kliller contingency with Concho Resources, Midland TX when they acquired Mack Chase interests in New Mexico for in excess of $1B making Mack Chase the richest man in New Mexico. He made them include his original license contract a part of the S1 filed of record in the courthouse, This agreement established a multimillion dollar relationship with Concho and Enerita and they all personally recognized revenue from royalty fees from this agreement. They formally ended my employment when Kala D Schmidt, Chairman of the board fired me via letter. I was not given any severance and insurance was provided to me as Cobra at my expense. After * plus years I was removed from the company and all internal and customer interfaces had my name and recognition removed. I hired a lawyer from the Texas legal website recommended online. I spent over $* million and was represented by a group of lawyers who basically negotiated a fully one-sided agreement. They simply took what they were offered. This culminated with a threat of a lawsuit, never filed, which was settled in the final agreement with extreme prejudice against me. It has been a very tough time and my PD continued to erode my mental ability. During the period involved my medication levels were abnormally high. We have changed the levels of medication to treat me since. In * my mother made payments for my treatment in Tortolla BVI for a treatment that was being offered by Zhittya Genesis Medicine, Las Vegas NV. I was enrolled under a safety test where *% of the patients were administered FGF-*. I am the 14th patient treated. This is a regenerative protein created by the human body and is extensively used in advanced wound healing situations. The process involved a brain treatment whereby the FGF-* was ingested using the naval passage up through and into my brain. The study was to support safety testing for continued FDA approval. In summary the PD I have is akin to brain damage resulting in a similar manner as blunt force trauma. The blood vessels are disrupted and damaged cutting off levodopa and oxygen. In a nutshell the treatment re-grows the capillary and other blood related delivery systems over an estimated 2 years to make it normal or actually refreshed again. It has now been 28 months since I was treated. There are now over * patients who have completed this trial with no adverse side effect, including ones fully discharged by their neurosurgeon. Zhittya has other approved and under study testing for heart treatment and is working on ALS, Dementia and Alzheimer's for which my treatment of the brain has already provided those benefits. The effects on my brain over 2 years. I found Zhittya after my diagnosis around *. I even offered to be the first trial patient to when I first talked to Dan Montano, CEO of Zhittya. Unfortunately I was forced to wait and continue to deteriorate for * more years. The effects of the FGF-* have been nothing but spectacular to my mind. Not only has it returned my mental abilities to a *+ percentage level it has returned my memories almost fully. I recall memories I had lost all the way back to my early childhood and almost everything except actual timelines of events in the years since my termination. My short-term memory has been almost totally reestablished when I am on medication. I am still disabled and receiving SSDI since * effective *. I received this on my first application. I still have physical limitations and am continuing medication daily for that part of the disability. I am not sure of my physical recovery and have other related issues after 15 years. With this time passed as anticipated to gain significant recovery I decided to review these documents that were agreed to and I am finding facts that I am very disturbed by them. Things that are wrong My compensation and the amounts of collections they did to reduce my assets included opening closed, audited financial periods for several prior years. There were deduction where artwork was charged to me but kept. Other travel, expense and legitimate expenses were charged to me and I had no ability made available to me to reconcile. The accounting firm of Waggoner & Associates was my outsource provider for all personal and tax relationships both business and personal. Josh Waggoner acted as accounting manager and his father Mark did tax and financial planning. For over 25 years. Kim Hatfield was their relationship to us and I believe that he has an equity interest in them or Crawley does with over 50 years of time. Kim Hatfield was supplied unfettered access to all this data and used it coercively in all negotiations with me. I believe my ex-wife granted the access, but she had no corporate authority to do that much less sign a check. Brad Bartek was in agreement with all of their activities and I believe he acted like he was acting in good faith with me at the end but it was a ruse. He informed me a balance sheet over $* million and aa fully depreciated *,000sft office he occupied a half floor in at submarket rent was near insolvency. They also quit paying me my compensation of almost $1m a year. Upon review of these circumstances and because of my condition after my recovery I am now aware of and can argue for myself that that took full and actionable actions against me in my disabled situation. would seek to recover compensation for my initial royalty compensation never paid by K3. I would seek to recover an amount equal to *% of the royalty amount paid to K3 for anything paid by Enertech Information Systems, Inc. It is estimated at over $* million plus interest for 40 years. It has come to my recent attention that the Midland Texas Enertia Tech Center is listed for sale at $*.* Million dollars. At the time of my termination agreement, I was told the balance sheet was in near receivership and the building value was represented in that by Kim, Brad and Kala. In fact it had been recovered almost immediately when I immediately sold half interest for $*.7Million improved for $*.* or more million and the capital basis fully depreciated to $*. I would seek to recover my hare of that sale. Since it was purchased both Mack paid rent and Enertia recognized intra company rents over $*,* per month. I would seek to recover my sharer of these fees plus interest. I believe that exceeds $* million I believe Kim Hatfield, Brad Bartek and Kala Schmidt all conspired to get rid of me for their own personal gains. They alone benefitted in the termination of all my rights. I believe they pierced the corporate veil and are also Corporately and personally liable for damages related to my rights. In no instance did they perceive any fiduciary responsibility or personal interest in my condition. They negotiated in bad faith with me and used corporate counsel paid for by company proceeds which resulted in a transaction with utterly no tax consideration whatsoever which was formulated with Waggoneer accounting firms’ compliance and career long knowledge of how best to hurt me. I feel like I should be considered to have current status in terms of at this time and the periods for these items statute of limitations extended. I liken my life to have like I went into and extended coma. My brain quit me. My body quit me. They treated me horribly and stole things with no air of fiduciary intent from me that were mine. When I was at their mercy they shut off my income and completely stopped my largest revenue stream that was my retirement. Once they paid me the re-enacted all royalties for themselves. The mental anguish with money being withheld and threatened cancellation of future royalty threats did me in. THEY funded it with the balance sheet and the three of them share in my founder’s equity today and they know my near homeless situation completely. They are truly scum of the earth thieves.

yes

thats it?