Exhibit 10.15
EMPLOYMENT AGREEMENT
AGREEMENT, dated as of June 1,1999, between Technor International, Inc., a
Nevada corporation (the "Company"), and Xxxx Xxxxxxxxx ("Executive").
W I T N E S S E T H:
WHEREAS, the Company is engaged in the business of [developing and
marketing products related to its cellular network tracking system] (as such
business is from time to time conducted by the Company and its affiliates during
the term of this Agreement, the "Business");
WHEREAS, the Company wishes to assure itself of the availability of the
advice and services of Executive in connection with the Business; and
WHEREAS, Executive wishes to be employed by the Company;
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements set forth herein, the parties hereto agree as follows:
1. EMPLOYMENT AND TERM. Subject to the terms and conditions of this
Agreement, and unless earlier terminated as set forth herein, the Company agrees
to employ Executive, and Executive hereby accepts employment by the Company, for
the two-year period commencing on the date hereof; PROVIDED, HOWEVER, that
commencing on the date one year after the date hereof, and on each annual
anniversary of such date (such date and each annual anniversary thereof is
hereinafter referred to as the "Renewal Date"), the term of this Agreement shall
be automatically extended so as to terminate two years from such Renewal Date,
unless at least 60 days prior to the Renewal Date, either Executive or the
Company shall give notice that the term of this Agreement shall not be so
extended (the initial term, together with all renewal terms, is sometimes
referred to herein as the "Term").
2. DUTIES. During the Term, Executive shall serve the Company as its Vice
President, and shall perform such executive and other duties for the Company, or
any division, subsidiary, affiliate or joint venture of the Company, as are
incident to such position and as may reasonably be requested by the Board of
Directors of the Company and under their direction. During the Term, Executive
shall devote her entire business time, attention and energies, on a full-time
basis, to duties under this Agreement.
3. COMPENSATION.
a. BASE SALARY. During the Term, the Company shall pay to Executive, in
equal installments no less frequently than twice per month (or at such other
intervals as are in effect from time to time for other executive employees of
the Company), an annual base salary of $96,000 (such amount, as the same may
hereafter be modified by mutual agreement of Executive
and the Company, to be reviewed once per year, being referred to herein as the
"Base Salary"). In addition, Executive may be awarded, at the Company's sole and
exclusive discretion, bonus compensation. Any such bonus compensation shall be
payable at such times as the Company may determine, but only if Executive is, as
of the date of such payment, an employee in good standing and not subject to any
of the notices described in Section 4.
b. BENEFITS. Executive shall be entitled to participate in such benefit
plans, including stock option, medical, health, retirement and other plans, as
may be established and maintained from time to time for executive employees of
the Company generally.
c. REIMBURSEMENT OF EXPENSES. Executive shall be entitled to reimbursement
for all normal and reasonable travel, entertainment and other expenses
necessarily incurred by her in the performance of her duties hereunder.
Executive shall submit on a timely basis such itemized accounts of such
expenses, together with such vouchers or receipts for individual expense items,
as the Company may from time to time require under its established policies and
procedures. The Company's payments hereunder shall be made within a reasonable
time following its receipt of such itemized accounts.
d. VACATION. Executive shall be entitled to 6 weeks' vacation each calendar
year during the Term (such period to be pro-rated based on the actual number of
working days for which Executive is employed during a calendar year). Executive
shall be entitled to additional compensation for any vacation time not taken in
respect of any calendar year, and Executive shall be entitled to carry over into
any succeeding year any unused vacation time.
e. DISABILITY. Except as hereinafter provided, the Company shall pay
Executive, for any period (up to a maximum of six months during the Term) in
which she is unable fully to perform her duties because of physical or mental
disability or incapacity, an amount equal to the Base Salary due her for such
period pursuant to Section 3(a), less the aggregate amount of all income
disability benefits which for such period she may receive by reason of (i) any
group health insurance plan, or disability insurance plan paid for by the
Company, in each case which is intended to function as a salary replacement
plan, (ii) any applicable compulsory state disability law, (iii) the Federal
Social Security Act, (iv) any applicable workmen's compensation law or similar
law and (v) any plan towards which the Company or any subsidiary or affiliate of
the Company (including any predecessor of any thereof) has contributed or for
which it has made payroll deductions, such as group accident or health policies,
other than those that reimburse for actual medical expenses.
f. KEY MAN INSURANCE. Executive agrees that the Company may obtain key man
life insurance with respect to Executive, and in connection therewith, agrees to
submit to all reasonable and customary examinations by the provider of such life
insurance.
4. TERMINATION OF EMPLOYMENT.
-2-
a. CAUSE. The Company shall have the right, at any time effective upon
notice to Executive, to terminate Executive's employment for "Cause," defined,
for purposes hereof, as (i) malfeasance, gross neglect or willful misconduct in
the performance of Executive's duties hereunder; (ii) conviction of a felony;
(iii) failure to perform any of Executive's material obligations under this
Agreement (other than by reason of death or disability contemplated by Section
3(e) or 4); (iv) fraud, dishonesty or unlawful conduct against the Company or
any of its or its affiliates' employees; or (v) a material breach of this
Agreement by Executive; PROVIDED, in the case of any default under clause (iii),
(iv) or (v) that is susceptible to cure, that such default continues uncured 15
days after written notice thereof from the Company to Executive.
b. DISABILITY; DEATH. In the event that Executive, due to physical or
mental disability or incapacity, is unable to substantially perform her duties
hereunder for a period of more than six months during the Term, the Company or
Executive shall have the right to terminate this Agreement and Executive's
employment hereunder upon 30 days' prior written notice and termination shall be
effective on the 30th day after receipt of such notice by the other party. In
the event that Executive is able to and recommences rendering services and
performing her duties hereunder within such 30-day notice period, Executive
shall be reinstated and such notice shall be without further force or effect. If
Executive dies during the Term, this Agreement shall terminate immediately upon
her death.
c. TERMINATION BY EXECUTIVE FOR GOOD REASON. Executive may terminate her
employment hereunder, such termination to be effective on written notice to the
Company, for any of the following reasons:
(i) the assignment to Executive of any duties inconsistent in any
material respect with Executive's position (including status, office,
titles and reporting requirements), authority, duties or responsibilities
as contemplated by this Agreement, or any other action by the Company which
results in a material diminution in such position, authority, duties or
responsibilities; or
(ii) the Company materially breaches its obligations under this
Agreement;
PROVIDED that any such action or default shall not have been remedied by the
Company within 15 days after receipt of notice thereof given by Executive.
d. VOLUNTARY TERMINATION BY EXECUTIVE. Executive may terminate her
employment under this Agreement on six months' written notice to the Company at
any time.
5. EFFECTS OF TERMINATION.
a. In the event that Executive's employment is terminated pursuant to
Section 4(a) or 4(d) hereof, (i) Executive's employment hereunder shall
immediately cease, (ii) the
-3-
Company shall pay to Executive her accrued and unpaid salary, accrued vacation
time and expense reimbursement through the date of termination in accordance
with the Company's usual procedures, and (iii) all then non-exercisable stock
options shall immediately and automatically terminate. Once the amounts referred
to in clause (ii) are paid, however, the Corporation shall have no further
obligation to Executive.
b. In the event that Executive's employment is terminated pursuant to
Section 4(b) hereof as a result of Executive's death, (i) Executive's employment
hereunder shall cease in accordance with Section 4(b), (ii) the Company shall
pay to Executive her accrued and unpaid salary, accrued vacation time and
expense reimbursement through the date of termination in accordance with the
Company's usual procedures, (iii) all then non-exercisable stock options shall
immediately and automatically terminate, and (iv) any vested options shall be
transferred in accordance with Executive's will; PROVIDED that nothing in this
paragraph (b) shall alter any right of Executive (or her legal representative)
to receive death benefits provided in accordance with the terms of a benefit
plan in which Executive participates if Executive's employment is terminated
pursuant to Section 4(b) hereof.
c. In the event that Executive's employment is terminated pursuant to
Section 4(b) hereof as a result of Executive's disability, (i) the Company shall
pay to Executive her accrued and unpaid salary, accrued vacation time and
expense reimbursement through the date of termination in accordance with the
Company's usual procedures, (ii) the Company shall continue to pay to Executive
her Base Salary, and all associated benefits, for a period of six months
following such date of termination, in accordance with the Company's usual
procedures; (iii) any nonexercisable stock options which would otherwise have
become vested in accordance with their terms within such six-month period if
Executive's employment shall have continued shall be vested; and (iv) any stock
options which are not vested at the end of such six-month period shall
automatically terminate at the end of such six-month period; PROVIDED that
nothing in this paragraph (c) shall alter any right of Executive (or her legal
representative) to receive disability benefits provided in accordance with the
terms of a benefit plan in which Executive participates if Executive's
employment is terminated pursuant to Section 4(b) hereof.
d. In the event that Executive's employment hereunder is terminated by the
Company other than pursuant to Section 4(a) or (b) or if Executive's employment
is terminated pursuant to Section 4(c), then: (i) Executive shall be entitled to
receive, and the Company shall continue to pay to Executive, the Base Salary
specified in Section 3(a) for one year following the effective date of such
termination, (ii) Executive shall be entitled, during the period during which
such severance payment is being paid, to receive all benefits under the
Company's medical insurance, disability insurance, life insurance and other
benefit plans as are then in effect for executives of the Company, (iii) any
nonexercisable stock options which would otherwise have become vested in
accordance with their terms within such one-year period if Executive's
employment shall have continued shall be vested; and (iv) any stock options
which are not vested at the end of such one-year period shall automatically
terminate at the end of such one-year period.
-4-
e. Executive's obligations pursuant to Sections 6 and 7 hereof shall
survive any termination of this Agreement for any reason whatsoever.
f. TERMINATION IN CERTAIN CIRCUMSTANCES AFTER A CHANGE OF CONTROL. If any
of the following shall occur:
(i) The acquisition by any person, entity or "group" (within the
meaning of Section 13(d)(3) of the Securities Exchange Act if 1934, as
amended (the "Exchange Act")) (other than the Company, its affiliates or
any Company benefit plan that acquires beneficial ownership of voting
securities of the Company) of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act) of 50% or more of the combined voting
power of the Company's then outstanding voting securities entitled to vote
generally in the election of directors; or
(ii) The failure of the individuals who, as of the date hereof,
constitute the Board of Directors of the Company (the "Incumbent Board"),
to constitute at least a majority of the Board of Directors; PROVIDED that
any person who becomes a director subsequent to the date hereof whose
recommendation, election or nomination for election by the Company's
stockholders was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be deemed to be a member of the
Incumbent Board; or
(iii) The consummation by the Company of a reorganization, share
exchange, merger or consolidation in which the persons who were the
stockholders of the Company immediately prior to such reorganization, share
exchange, merger or consolidation do not, immediately thereafter, own more
than 50% of the combined voting power entitled to vote in the election of
directors of the reorganized, merged or consolidated company;
and if Executive's employment is terminated within twelve months of any of the
foregoing events (other than pursuant to Sections 4(a), 4(b) or 4(d) hereof, (x)
the Company shall pay to the Executive, as severance pay or liquidated damages
or both, during the twelve-month period immediately following such termination,
the amount of Base Salary that the Executive would have been entitled to receive
during such period had the Executive's employment not been so terminated; (y)
Executive shall be entitled, during the period during which such severance
payment is being paid, to receive all benefits under the Company's medical
insurance, disability insurance, life insurance and other benefit plans as are
then in effect for executives of the Company, and (z) any nonexercisable stock
options which would otherwise have become vested in accordance with their terms
within such one-year period if Executive's employment shall have continued shall
be vested.
6. CONFIDENTIALITY.
-5-
a. Executive understands and acknowledges that, as a result of Executive's
employment with the Company, she shall necessarily become informed of, and shall
have access to, confidential information of the Company, including, without
limitation, the contents of this Agreement, inventions, trade secrets, technical
information, know-how, plans, marketing plans and information, pricing
information, identity of providers and their patients and prospective providers
and their patients and identity of suppliers, and that such information, even
though it may be developed or otherwise acquired by Executive, is the exclusive
property of the Company to be held by Executive in a fiduciary capacity and
solely for the Company's benefit. Executive shall not at any time, either during
or subsequent to her employment hereunder, reveal, report, publish, transfer or
otherwise disclose to any person, company or other entity, or use for own
benefit, any of the Company's confidential information which Executive, in the
exercise of reasonable diligence, knows or should know to be confidential,
without the written consent of the Company, except for use on behalf of the
Company in connection with the Business, and except for such information which
is or becomes of general public knowledge from authorized sources other than
Executive.
b. Upon the termination of her employment with the Company for any reason,
Executive shall promptly deliver to the Company all manuals, letters, notes,
notebooks, reports, documents and copies thereof and all other materials,
including, without limitation, those of a secret or confidential nature,
relating to the Business that are in Executive's possession or control.
c. For purposes of this Section 6, the term "Company" includes the Company,
any predecessor company, and any of their respective affiliates.
7. NON-COMPETITION.
a. Subject to the provisions of paragraph (b) hereof, Executive agrees
that, for the period commencing on the date hereof and ending two years after
the termination of employment with the Company for any reason, she shall not, in
any country in the world in which the Company then engages in the Business (or
in such lesser area or for such lesser period as may be determined by a court of
competent jurisdiction to be a reasonable limitation on the competitive activity
of Executive), directly or indirectly:
(i) engage, as an employee, officer, independent contractor or in any
other capacity, in any activity for or on behalf of any person or entity
(other than the Company) in a line of business competitive with the
Business or any aspect thereof or engage in any manner in the Business;
(ii) except for the benefit of the Company, solicit or attempt to
solicit business of entities who were providers for, or customers of, the
Company at any time within the prior two years (including prospective
providers or customers solicited by the Company) for products or services
the same or similar to those offered, sold, produced or under
-6-
development by the Company, or dealt in by Executive, during her employment
therewith;
(iii) interfere with the Company, the Business or the conduct thereof
by the Company, or otherwise divert or attempt to divert from the Company
any business whatsoever;
(iv) hire, solicit or attempt to solicit for participation or
employment in any business endeavor any employee of the Company;
(v) use the name of the Company or any name used by the Company, or
any name similar to any thereof, whether or not registered; or
(vi) render any services as an officer, director, employee, partner,
consultant or otherwise to, or have any interest as a member, stockholder,
partner, lender or otherwise in, any person or entity that is engaged in
activities which, if performed by Executive, would violate this Section 7.
The foregoing shall not prevent Executive from purchasing up to five percent of
the voting securities of any other entity, the securities of which are
publicly-traded, during the time which the Executive is actively employed by the
Company.
b. In the event Executive's employment is terminated under the
circumstances contemplated by paragraphs (c) or (d) of Section 5, the
obligations of Executive set forth under this Section 7 shall only continue in
effect so long as the Company continues to pay to Executive her Base Salary (in
the intervals set forth in Section 3(a)) during the one-year period following
termination of such employment.
c. Executive agrees that the restrictions on competition set forth in this
Section 7 are reasonable and are properly required for the adequate protection
of the Business of the Company. Executive represents that her experience,
capabilities and circumstances are such that the provisions of this Section 7
will not prevent her from earning an appropriate livelihood.
8. REMEDIES AND SURVIVAL. Because the Company does not have an adequate
remedy at law to protect its interest in its confidential information and its
Business from Executive's competition, the Company shall be entitled to
injunctive relief, in addition to such other remedies and relief that would, in
the event of a breach of the provisions of Sections 6 or 7, be available to the
Company. The provisions of Sections 5 through 8 of this Agreement shall survive
any termination of Executive's employment with the Company.
9. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of
the parties hereto with respect to its subject matter, merges and supersedes any
prior or contemporaneous agreements or understandings with respect to its
subject matter and shall not be
-7-
modified or terminated except by another agreement in writing executed by the
Company and Executive.
10. SEVERABILITY. If any provision of this Agreement is held to be invalid
or unenforceable by any court or tribunal of competent jurisdiction, the
remainder of this Agreement shall not be affected by such judgment, and such
provision shall be carried out as nearly as possible according to its original
terms and intent to eliminate such invalidity or unenforceability.
11. SUCCESSORS AND ASSIGNS. Neither party shall have the right to assign
this personal Agreement, or any rights or obligations hereunder, without the
consent of the other party; PROVIDED, HOWEVER, that upon the sale or transfer of
all or substantially all of the assets and business of the Company to another
party, or upon the merger or consolidation of the Company with another Company,
this Agreement shall inure to the benefit of, and be binding upon, both
Executive and the party purchasing or acquiring such assets, business and
goodwill, or surviving such merger or consolidation, as the case may be, in the
same manner and to the same extent as though such other party were the Company.
Subject to the foregoing, this Agreement shall inure to the benefit of, and
bind, the parties hereto and their legal representatives, heirs, successors and
permitted assigns.
12. CONSTRUCTION; COUNTERPARTS. The headings contained in this Agreement
are for convenience only and shall in no way restrict or otherwise affect the
construction of the provisions hereof. This Agreement may be executed in
multiple counterparts, each of which shall be an original and all of which
together shall constitute one and the same instrument.
13. ARBITRATION; GOVERNING LAW. This Agreement shall be governed by the
laws of the State of Nevada applicable to agreements made and fully to be
performed therein by residents thereof. Any dispute arising out of or in
connection with this Agreement, including, without limitation, disputes over the
nature of any termination hereof, shall be finally determined by binding
arbitration in New York before a single arbitrator chosen in accordance with the
rules of the American Arbitration Association then and there obtaining. The
arbitration shall be conducted in accordance with such rules, and the arbitrator
shall have the authority to order such injunctive relief as she may determine,
to determine how the parties shall bear the costs of such arbitration, and to
award such damages (but not any punitive or exemplary damages) as are
appropriate. Each of the parties hereby waives any and all objections or it may
have with respect to the jurisdiction of such arbitral forum or the
inconvenience of its venue.
-8-
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the date first set forth above.
TECHNOR INTERNATIONAL, INC.
By: /s/ Xxxxx Xxxxxxxxxx
--------------------------------------
President
/s/ Xxxx Xxxxxxxxx
--------------------------------------
Executive
-9-
