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EXHIBIT 10.17
EMPLOYMENT AGREEMENT
This is an agreement, effective June 28, 1999, between Advanced Optics
Electronics, Inc., a Nevada Corporation, (the "Company"), and Xxxx X. Xxxxxxx,
an individual residing at 00000 Xxxxx Xx. XX, Xxxxxxxxxxx New Mexico, (the
"Employee").
Background
The Company desires the services of the Employee to contribute to and advance
the competitive and financial positions of the Company by innovation and
directed efforts. The Employee in the course of such employment is expected to
have access to trade secrets, customer names, actual and proposed developments
and projects, financial and pricing information, and to other matters, including
sales procedures and techniques, whose secrecy the Company desires to preserve.
The Company is in a highly competitive business and could be irremediably
damaged by disclosures of its trade secrets, developments, techniques, methods,
names of customers or prospective customers, sales methods, pricing procedures,
and other aspects of is business.
In consideration of the mutual undertakings relating to the employment of the
Employee, the parties have agreed as follows:
(1) "Employment" means the period during which the Company employs the
Employee. The initial period of this contract will be two years from
the date of this Agreement. There shall be a one-year renewal option.
The renewal option must be executed 60 days before the end of the
initial period.
(2) "Compensation" means the base salary on an annual basis. This salary
will be paid weekly. Compensation shall be $60,000 net of State and
Federal taxes for the first year, $75,000 net of State and Federal
Taxes for the second year, and $94,000 net of State and Federal taxes
for the option year.
(3) "Stock Award" means the initial award of common stock in the Company to
the Employee due upon the signing of this Agreement. The Stock Award
shall be 150,000 shares.
(4) "Medical Allowance" means the monthly payment to contribute to health
insurance. This shall be paid monthly. The Medical Allowance shall be
$200 per month for the first year, $250 per month for the second year,
and $300 per month for the option year.
(5) "Termination" means the last day of employment of the Employee by the
Company. It is anticipated that Termination will be at the end of the
initial term or option period under this Agreement. If however, it is
deemed beneficial for either party to terminate the contract earlier,
Termination will comply with the following terms: if the Company
initiates Termination the balance of Compensation, Medical Allowance,
and Stock option vesting (which is detailed
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under a separate agreement) shall be due and payable; if the Employee
initiates Termination the pro rated amount of Stock Award shall be
returned to the Company. The pro rated amount will be calculated as the
150,000 shares multiplied by the amount of time in Employment divided
by the two-year initial term.
(6) "Vacation" means the amount of vacation time available to the Employee.
There will be three weeks of vacation time available in the first year
and four weeks available in the second year and option year. No more
than two weeks vacation will ever be taken concurrently. Vacation will
not be taken at critical times in the business schedule and dates are
subject to prior approval.
(7) The Employee agrees to use his best efforts to promote and advance the
financial, technical, and competitive positions of the Company
throughout the Employment and thereafter to the extent provided herein.
(8) The Employee agrees that he will during the Employment, and for a
period of two years subsequent to Termination, maintain in secrecy all
information acquired by the Employee during the Employment concerning
finances, business procedures, names and lists of customers and
prospective customers, sales letters, proposals, trade secrets, and
innovations relating to the Company or any of its customers or
suppliers, or other matters of a confidential nature or which are
designated by a representative of the Company to be among those matters
to be regarded as confidential.
(9) The Employee acknowledges that the relationships between the Company
and its customers and suppliers, and prospective customers and
suppliers, are confidential, whither or not evidenced by a written
instrument, and that the Company is under certain obligations to
refrain from making use of or revealing information gained from its
customers or suppliers, or resulting from work done for its customers,
and the Employee agrees to and hereby does adopt all such obligations
of the Company as his own and agrees to personally abide by all such
obligations of the Company.
(10) The Employee acknowledges that he has no power to bind the Company and
agrees not to attempt to bind the Company to any obligation not
authorized in writing by the Company.
(11) The Employee agrees, upon Termination, to deliver to the Company all
property of the Company including all originals and copies of documents
and photographs, models, prototypes, tools, supplies and all other
property of the Company of every kind. The Employee agrees that all
documents relating to the Company, whither or not originated by the
Employee, are the property of the Company.
(12) The Employee acknowledges that during Employment he can reasonably
expect to acquire information which if applied to a competitive
endeavor would be
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harmful to the Company. Accordingly, the Employee agrees that for a
period of one year subsequent to Termination, he will not engage in any
activities directly competitive to that activities or business interest
of the Company or advise or be employed by any company or other entity
engaged in the design, manufacture or sale of products or services of
the kinds performed, made or sold by the Company during the Employment.
This prohibition of competitive activity is limited to the geographical
areas in which the Company shall have done business during the
Employment and those areas which, at the time of Termination, the
Company has specific genuine intention to do business. The competitive
restriction is further limited to those activities which the Company
reasonably deems to be financially harmful to its interests.
(13) The Employee warrants that he is under no obligation to any other
entity that would in any way conflict with any obligation of the
Employee hereunder. The Employee further warrants that he will not
disclose to the Company any information with respect to which the
Employee is under any obligation of confidentiality.
(14) This Agreement shall be construed and enforced in accordance with the
laws of the state of New Mexico.
(15) The Agreement supersedes and replaces all former agreements or
understandings with respect to the subject matter hereof.
(16) If any provision hereof is determined to be invalid or unenforceable,
the remainder of this Agreement shall be unaffected thereby and shall
be enforceable against either party.
(17) This Agreement shall inure to the benefit of any successor, assignee or
nominee of the Company as fully as if it had been an original party
hereto.
Advanced Optics Electronics, Inc.
By: /s/ XXXXXX X. XXXXXX
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Title: Executive Vice President
Date: June 24, 2000
Employee: /s/ XXXX X. XXXXXXX
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Date: June 24, 2000
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