Amendment to Agreement
WHEREAS,
GlobalNet Corporation (the “Company”) and Xxxxxx X. Xxxx (“Xxxx”) entered into
an Employment Agreement dated August 16, 2005 (the “Agreement”); and,
WHEREAS,
the Agreement contemplated a bonus (the “Bonus”) to be paid to Xxxx upon filing
of certain financial statements, in the amount of $45,000; and,
WHEREAS,
the Company agrees that circumstances beyond the control of Xxxx have created
significantly more effort in the filing of such statements, and have created
unanticipated delays in such filing; and,
WHEREAS,
Xxxx has advised the Company and the Company acknowledges receipt of such
notice, that the Company is in default on critical elements of the Agreement
and
that pursuant to Paragraph 4 of the Agreement, Xxxx has provided the Company
with the required notice of his intention not to renew the Agreement without
modification; and,
WHEREAS,
the Company desires to retain the services of Xxxx pending negotiation of a
new
employment agreement and agrees that adjustments to the Bonus and certain other
actions are necessary to accomplish same.
NOW,
THEREFORE, the Company and Xxxx agree to this Amendment to the Agreement (the
“Amendment”) as follows:
1. The
amount that would have been paid as the Bonus shall be increased by 50%, to
a
total of $67,500, and shall be paid to Xxxx as a combination of salary
adjustment (the “Salary Adjustment”) and residual bonus (the “Remaining
Bonus”).
2. The
Salary Adjustment shall be paid to Xxxx in equal semimonthly installments of
$6,750, with an effective date of June 16, 2006, and shall continue for such
time until a total of $67,500 shall have been paid, or the Company shall have
filed its Quarterly Report on Form 10-Q for the period ended June 30, 2006
(the
“Target Filing”). The Salary Adjustment shall be considered a payroll obligation
of the Company and shall not be discretionary in any respect. In the event
of
termination of employment at dates that do not coincide with semimonthly pay
periods, the Salary Adjustment shall be appropriately prorated.
3. Contemporaneous
with achievement of the Target Filing, the Company shall immediately pay to
Xxxx
the difference between the cumulative payments made as Salary Adjustments and
$67,500 (the “Remaining Bonus”). The Remaining Bonus shall be considered a
payroll obligation of the Company and shall not be discretionary in any
respect.
4. In
the
event that the Parties do not enter into a new Employment Agreement, the payment
obligations under this Agreement shall remain in force as long as the Parties
continue on short-term extensions of the original Agreement. Nothing in this
Amendment extends the term of the Agreement.
5. In
the
event that Xxxx’x employment is terminated for any reason, and Xxxx subsequently
is required or requested to spend time in any legal proceedings or otherwise,
including but not limited to, all time required for successor transition,
depositions, hearings, mediation, arbitration, trial, or preparation thereof,
the Company agrees to pay Xxxx an hourly rate of $150, together with all
reasonable and necessary expenses. This requirement will be honored by the
Company, regardless of whether the Company is the initiating party in any
action, or whether the time expenditure by Xxxx is required by actions of any
other party, including but not limited to any actions initiated by regulatory,
shareholder or noteholder interests. In the event of non-payment by the Company
of the required hourly amounts and expenses, the Company agrees that Xxxx shall
have no obligation to participate or assist in any Company initiated or
requested action, and will not take any steps to force assistance without the
required payment. This paragraph will survive the termination of the Agreement
and any renewals or extensions.
IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year indicated below.
GlobalNet
Corporation
|
Xxxxxx
X. Xxxx
|
By:
/s/ Xxxx X. Xxxx
|
/s/
Xxxxxx X. Xxxx
|
Name:
Xxxx X. Xxxx
|
Xxxxxx
X. Xxxx
|
Title:
CEO
|
|
Date:
July 4, 2006
|
July
3, 2006
|