EXHIBIT 10.2
ACE MARKETING & PROMOTIONS, INC.
000 XXXXXXXX XXXXXX
XXXXXX XXXXXX, XX 00000
September 21, 2007
EXTENSION TO EMPLOYMENT AGREEMENT DATED MARCH 1, 2005
Xxxxxxx X. Xxxxxxx
Ace Marketing & Promotions, Inc.
000 Xxxxxxxx Xxxxxx
Xxxxxx Xxxxxx, XX 00000
Re: Employment Agreement - Xxxxxxx X. Xxxxxxx
Dear Xx. Xxxxxxx:
On August 22, 2007, the Board of Directors approved the following
resolutions:
RESOLVED, that the Board of Directors of the Corporation does hereby ratify,
adopt and approve a three-year extension of the employment contracts of each of
Xxxx Xxxxx and Xxxxxxx X. Xxxxxxx to expire on February 28, 2011; and it was
further
RESOLVED, that the amendment to each executive's employment shall
provide for the following additional provisions: o Continuation of current
annual salary with scheduled salary increases of $24,000 per annum to occur on
every anniversary date of the contract and extension thereof commencing on March
1, 2008;
o A signing bonus of options to purchase 150,000 shares granted to
each executive which is fully vested at the date of grant and
exercisable at $1.20 per share through August 22, 2017;
o Ten-year options to purchase 50,000 shares of Common Stock to be
granted at fair market value on each anniversary date of the
contract and extension thereof commencing March 1, 2008; and
o Termination pay of one-year base salary based upon the scheduled
annual salary of each executive officer for the next contract
year, plus the amount of bonuses paid (or entitled to be paid) to
the executive for the current fiscal year or the preceding fiscal
year, whichever is higher;
and it was further
RESOLVED, that all options granted to executives shall be non-statutory
stock options containing cashless exercise provisions and granted under the
Company's 2005 Employee Benefit And Consulting Services Compensation Plan.
By signing below, you agree to the Ace Board of Directors approved
resolutions of August 22, 2007 to amend your employment agreement dated March 1,
2005 in accordance with the resolutions stated above.
Sincerely,
ACE MARKETING & PROMOTIONS, INC.
By: /s/ Xxxx X.xxxxx
----------------------------
Xxxx X. Xxxxx, Chief
Executive Officer
Agreed to and Accepted by:
/s/ Xxxxxxx X. Xxxxxxx
---------------------------------
Xxxxxxx X. Xxxxxxx
