Exhibit 10.14
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of the 16
day of September, 1999 by and between XxxxxXxxxx.xxx Inc. ("Company") and Xxxxxx
XxXxxxxx.
WHEREAS, the Company desires to employ Xxxxxx XxXxxxxx as the "Manager" of the
Company;
WHEREAS, Xxxxxx XxXxxxxx has agreed to provide such services in accordance with
the terms and conditions of this Agreement;
NOW THEREFORE, in consideration of the mutual promises herein made and of other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
Employment. Company shall employ Xxxxxx XxXxxxxx as Manager during the
term of this Agreement and Xxxxxx XxXxxxxx hereby accepts such employment.
Xxxxxx XxXxxxxx shall be responsible for overseeing of operations in the Coconut
Creek, FL. facility, and shall have such other duties regarding the Company as
shall be determined from time to time by the Board of Directors of the Company
("Board")..
Term of Employment. The term of employment of Xxxxxx XxXxxxxx shall be for
a term of 2 years from the date of this Agreement ("Initial Term") and shall
automatically extend for additional terms of 2 year(s) ("Renewal Term") unless
this Agreement is terminated as of the last day of the Initial Term or as of the
last day of any Renewal Term upon not less than ninety (90) days prior written
notice by either party to the other, subject to earlier termination as provided
in paragraphs 4, 5, and 6 hereof.
Compensation. Base Salary. Xxxxxx XxXxxxxx shall be paid a base salary of
$50,000.00 at the annual rate of 10% in the 1st year of this Agreement;
increases for the second and third year are contingent upon review by the
compensation committee, which will be established by the Board of Directors,
commencing on the date that the Company completes full funding of the 23-27
million dollar offering of its common stock, which offering is being made
pursuant to the Company's Registration Statement on Form SB-2 to be filed under
the Securities Act of 1933, as amended, with the Securities and Exchange
Commission on or about November 1999 (the "Offering").
Cash Bonus. Xxxxxx XxXxxxxx shall be paid a cash bonus, if any, within the
sole discretion of the Board of Directors of the Company. Such bonus shall be
paid within a reasonable period of time after the Board of Directors in its
discretion awards such cash bonus.
(c) Stock Bonus. Xxxxxx XxXxxxxx shall receive a stock bonus, if any, within the
sole discretion of the Board of Directors of the Company. Such stock bonus shall
be implemented within a reasonable period of time after the Board of Directors
in its discretion awards such stock bonus.
(d) Vacation. Xxxxxx XxXxxxxx shall be entitled to paid vacation and paid
Federal and state holidays in accordance with the vacation policy of the Company
then in effect, but no less than one (1) weeks of vacation the first year.
Every year thereafter the employee will receive two (2) weeks of vacation every
year up to five years.
(e) Other Benefits. Xxxxxx XxXxxxxx shall be entitled to participate in all
benefit programs made generally available to other management employees of the
Company, on the same terms and conditions as they are offered to others,
including but not limited to medical, dental, and term life insurance benefits.
Xxxxxx XxXxxxxx shall also be provided, at Company expense, with a vehicle for
business use, including all transportation and insurance costs associated
therewith.
(f) Severance Payment. In the event of the termination of Xxxxxx XxXxxxxx
employment hereunder prior to the end of the Initial Term, or any Renewal Term,
by the Company without cause (except termination upon death or total and
permanent disability) including any deemed termination by the Company as set
forth in paragraph 4(b) hereof, the Company shall pay one lump-sum severance
benefits equal to ninety (90) days of base compensation ("Severance Payment"),
which Severance Payment shall be made to Xxxxxx XxXxxxxx within fifteen (15)
days of the notice of termination of employment.
(g) Stock Option Grants/Employee Stock Ownership Plan. Xxxxxx XxXxxxxx shall be
entitled to participate and receive stock option grants from the Company's
Employee Stock Option Plan ("ESOP") during his employment with the Company, at
the discretion of the Board of Directors or committee of the Board responsible
to administer the ESOP, in amounts which are proportional to and at the same
time as option grants are made to other members of the Company's senior
management and according to terms and conditions which are comparable to such
ESOP option grants received by other members of the Company's senior management.
Termination of Employment.
Termination For Cause. The Company may terminate the employment of Xxxxxx
XxXxxxxx at any time for cause (as hereinafter defined) upon written notice. The
term "for cause" shall mean: the continued failure by Xxxxxx XxXxxxxx to
substantially perform his primary duties as Xxxxxx XxXxxxxx of the Company in a
reasonable professional manner other than due to temporary or total disability
or death, after a written demand for such substantial performance is delivered
to Xxxxxx XxXxxxxx by the Board of Directors of the Company; the unauthorized
dissemination of significant trade secrets or other proprietary property of the
Company; the commission of a felony or commission of a crime involving
dishonesty or moral turpitude; the commission of any act or acts of dishonesty
which acts are intended to result or do result directly or indirectly in gain or
personal enrichment of Xxxxxx XxXxxxxx or a related person or affiliated company
or when such acts are intended to cause harm or damages to the Company;
the continued use of alcohol so as to have an adverse effect on the
performance of his duties;
the misappropriation or embezzlement of Company assets;
the knowingly furnishing of material false reports or information to the
directors or officers of the Company; or the making of serious disparaging
remarks regarding the Company publicly or to suppliers and/or customers or
potential customers of the Company.
Default. Either party may terminate this Agreement upon the breach of any
material provision of this Agreement by the other party upon thirty (30) days
prior written notice; provided, however, that such termination notice shall not
be effective if the defaulting party corrects such default prior to the date of
termination. Termination by Xxxxxx XxXxxxxx of his employment hereunder by
reason of the default of the Company shall be deemed for all purposes of this
Agreement a termination by the Company without cause.
Disability. The Company may terminate the employment of Xxxxxx XxXxxxxx
under this Agreement by written notice upon the total and permanent disability
of Xxxxxx XxXxxxxx. Total and permanent disability shall mean the inability of
Xxxxxx XxXxxxxx to substantially perform the essential functions of his
position, with or without reasonable accommodations, due to sickness or other
physical or mental disability, for thirty (30) days in any thirty (30) day
period or a period of time which exceeds the time for medical leave provided by
law, whichever period is longer. The Company shall give Xxxxxx XxXxxxxx written
notice of any termination hereunder.
Death. The employment of Xxxxxx XxXxxxxx under this Agreement
automatically terminates upon the death of Xxxxxx XxXxxxxx.
Expense Reimbursement. Xxxxxx XxXxxxxx shall be reimbursed, upon a proper
accounting, for all expenses reasonably incurred in connection with this
employment hereunder, including all reasonable travel and entertainment expenses
pursuant to Company policy.
Confidential Information. During the Initial Term or any Renewal Term of
this Agreement, Xxxxxx XxXxxxxx shall not use or disclose to others, without the
prior written consent of the Company, any customer lists, trade secrets, secret
know-how, or other confidential information relative to the business of the
Company obtained by Xxxxxx XxXxxxxx in the course of rendering services pursuant
to this Agreement. The obligation of Xxxxxx XxXxxxxx with respect to any item of
such information shall terminate if that item of information becomes disclosed
in published literature or otherwise becomes publicly available, provided that
such public disclosure did not result, directly or indirectly, from any act or
omission of Xxxxxx XxXxxxxx. Upon the leaving the employ of the Company for any
reason, Xxxxxx XxXxxxxx shall continue to be bound by this Paragraph 8 for a
period of one (1) years, and shall not take with him any customer lists,
confidential data, or other documents and instruments which are the property of
the Company. All such data, documents and instruments and all copies thereof
shall be surrendered by Xxxxxx XxXxxxxx to the Company on or prior to the
termination of his employment.
Notices. All notices, requests, demands and other communications required
or permitted hereunder shall be in writing and shall be deemed to have been
given when delivered by hand or upon delivery to the address set forth below, if
delivered by any other means, addressed to the party and delivered to the
address set forth below or to such other address as such party gives written
notice in substitution therefor:
Limitations.
Non-Compete. Xxxxxx XxXxxxxx agrees that during the term of his
employment with the Company hereunder and for a period of one (1) years
thereafter he shall refrain, directly and indirectly, jointly and severally,
from managing, operating, financing, participating in the ownership, management
or operation of or be employed by, consult with, advise or be otherwise engaged
in any manner with, any business engaged in the providing of services or
products competitive to those provided by the Company in any geographic area in
which the Company operates as of the date that Xxxxxx XxXxxxxx leaves the
Company's employment. Ownership of less than 5% of companies whose securities
are publicly traded is not prohibited by this Agreement.
Non-solicitation of Customers. Xxxxxx XxXxxxxx agrees that during the term
of his employment with the Company hereunder and for a period of one (1) years
thereafter he shall not, on his own behalf, or on behalf of another, directly or
indirectly, solicit, contact, call upon, communicate with or attempt to
communicate with any customer or prospective customer of the Company with a view
to the providing of services or products which are competitive with those that
are marketed or provided by the Company as of the date that Xxxxxx XxXxxxxx
leaves the Company's employment, provided that these restrictions shall apply
only to customers or prospects of the Company which have been customers or
prospects with whom Xxxxxx XxXxxxxx has had contacts on behalf of the Company.
Non-solicitation of Employees. Xxxxxx XxXxxxxx agrees that during the term
of his employment hereunder and for a period of one (1) years thereafter, Xxxxxx
XxXxxxxx will not directly or indirectly solicit or in any other manner
encourage employees of the Company to leave its employ for an engagement in any
capacity with any other company or entity.
Limitations. Notwithstanding the foregoing, the covenants of
XxxxxXxxxx.xxx Inc. pursuant to this paragraph 10 shall terminate upon the
termination of Xxxxxx XxXxxxxx employment by the Company without cause or by
reason of the Company's breach of its obligations hereunder.
Dispute Resolution. Any dispute regarding the interpretation, breach,
damages or otherwise related to the interpretation or construction of this
Agreement shall be resolved by binding arbitration before one or more
arbitrators appointed by the American Arbitration Association ("AAA") in the
city of Nashville, Tennessee, pursuant to the AAA's Commercial Arbitration
Rules. Either party may institute the action by notice to the AAA and to the
other party. Prior to the filing of any complaint with the AAA, the parties
shall meet and attempt to resolve the dispute. The cost of such arbitration
shall be borne equally by the parties. Any decision or award by said
arbitrator(s) shall be binding on the parties. Notwithstanding the foregoing,
any party hereto may apply to any court for a temporary or permanent injunction
or restraining order to specifically enforce any provision hereof.
Binding Effect. This Agreement shall inure to the benefit of and be
binding upon Xxxxxx XxXxxxxx and his estate and personal representatives and
upon the Company and its successors and assigns. This Agreement may not be
assigned, pledged or otherwise hypothecated by Xxxxxx XxXxxxxx.
Successors and Assigns. The Company shall cause any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the assets or outstanding securities of the Company, by
written agreement in form and substance reasonably satisfactory to counsel to
Xxxxxx XxXxxxxx to perform the obligations of the Company pursuant to this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place. In the event the
Company has a parent, the parent shall guaranty the obligations of the Company
hereunder. The rights and obligations of the Company under this Agreement shall
inure to the benefit of and be binding upon the successors and assigns of the
Company regardless of whether such successor or assign consents in writing
thereto. The rights of Xxxxxx XxXxxxxx hereunder shall inure to the benefit of
and be enforceable by Xxxxxx XxXxxxxx and his estate and legal representative.
Severability. In the event of the invalidity, in whole or in part, of any
term or provision of this Agreement, the parties agree that such invalidity
shall not affect the validity of any other term or provision of this Agreement
and that such provision shall be subject to partial enforcement to the extent
permitted under applicable law.
Entire Agreement. This Agreement constitutes the entire understandings of
the parties with respect to the employment of Xxxxxx XxXxxxxx by the Company and
supersedes all prior agreements and understandings, oral or written.
Amendments. This Agreement may not be amended or modified except in a
writing signed by both parties.
Waiver. The failure by a party to insist upon strict performance of any
provision hereof shall not constitute a waiver of such provision. All waivers
must be in writing to be enforceable hereunder.
Governing Law. This Agreement shall be made and in all respects shall be
interpreted, construed and governed by and in accordance with the laws of the
State of Nevada, without giving effect to the rules governing conflicts of law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.
COLORSMART INC.
By: /s/ Xxxxx Xxxxxxx Xx. /s/ Xxxxx Xxxxxxx Xx.
Chief Executive officer ----------------------
9/21/99
/s/ Xxxxxx X. XxXxxxxx
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