EXHIBIT 10.9
EMPLOYMENT AGREEMENT
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THIS AGREEMENT made as of this 1st day of April, ▇▇▇▇
▇ ▇ ▇ ▇ ▇ ▇ ▇:
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
(hereinafter referred to as the "Employee")
OF THE FIRST PART
- and -
IRONSIDE TECHNOLOGIES INC.
(hereinafter referred to as the "Employer")
OF THE SECOND PART
WHEREAS the Employer wishes to have the benefit of the Employee's
knowledge and experience as a full-time employee;
AND WHEREAS the Employer and the Employee are desirous of entering
into an employment relationship for their mutual benefit;
AND WHEREAS the Employer and the Employee have agreed that the terms
and conditions of the employment relationship shall be as set out herein;
NOW THEREFORE in consideration of the terms, conditions, covenants and
obligations herein contained (the adequacy of which is hereby acknowledged by
each of the parties), the parties hereto have agreed and do hereby agree as
follows:
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ARTICLE ONE - DEFINITION
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1.01 "Just Cause" means (i) wilful failure of the Employee to properly
carry out his duties after written notice by the Employer of the failure to do
so and an opportunity for the Employee to correct the same within a reasonable
time from the date of receipt of such written notice from the Employer; or (ii)
theft, fraud or material dishonesty or misconduct by the Employee involving the
property or affairs of the Employer or the carrying out of the Employee's
duties; or (iii) any material breach of the obligations of the Employee pursuant
to this Agreement; or (iv) cause as determined by a Canadian court of competent
jurisdiction.
ARTICLE TWO - SCOPE OF EMPLOYMENT
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2.01 Employment: The Employer hereby agrees to employ the Employee and the
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Employee hereby accepts such employment on a full time basis in the position of
President & CEO, upon the terms and conditions set forth in this Agreement.
2.02 Duties and Responsibilities: The duties and responsibilities of the
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Employee shall consist of being responsible for the overall operations of the
Company, establishing a business plan, executing that plan, and providing
corporate leadership on behalf of the Employer. More specifically, the duties
and responsibilities of the Employee shall consist of the following:
(i) creating a Vision, Mission, and direction for the Company
(ii) developing and implementing business plans and processes on
behalf of the Employer with a view to increasing revenues,
profit and competitive advantage, and
(iii) establishing the necessary infrastructure on behalf of the
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Employer with a view to increasing revenues, profit and
customer/channel satisfaction,
and such other duties and responsibilities as may be assigned to him from time
to time by the Employer. In addition, the Employee acknowledges and agrees that
the Employer shall retain the sole discretion to amend the Employee's job
description from time to time during the term of this Agreement.
2.03 Full and Faithful Service: The Employee shall devote to the business
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and affairs of the Employer all of his working time, attention and ability to
carry out the duties of his position and will ensure that he is not, at any
time, engaged in conduct that would constitute a conflict with the interests of
the Employer. The Employee agrees that he will, in the performance of his
duties, promote the interest, business and reputation of the Employer and shall
perform all such duties as are essential or conducive to the efficient
management thereof in accordance with the rules and policies of the Employer.
2.04 Acknowledgement: The Employee acknowledges that the effective
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performance of his duties requires the highest level of integrity and the
Employer's complete confidence in the Employee's relationship with other
employees of the Employer and with all persons dealt with in the course of his
employment. The Employee shall diligently, faithfully and honestly serve the
Employer during the continuance of his employment hereunder and shall use his
best efforts to promote the interests of the Employer.
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ARTICLE THREE - TERM OF EMPLOYMENT
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3.01 Term Period: The term of employment created herein shall be for an
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indefinite period commencing on the execution of this Agreement, unless this
Agreement is terminated earlier by either of the parties in accordance with the
provisions set out herein.
ARTICLE FOUR - COMPENSATION
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4.01 Base Salary: As remuneration for his services hereunder, the Employee
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shall be paid a base salary (the "Base Salary") at the rate of Cdn. $200,000 per
annum, less all applicable statutory deductions, which Base Salary shall be paid
in arrears and in equal bi-weekly installments.
4.02 One-time Bonus: The Employee will receive an initial signing bonus of
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$50,000 upon successful completion of the initial private financing.
4.03 Club: The Employee will receive $6700.00 per year to cover his club
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fees.
4.04 Incentive Compensation: The Employee shall be entitled to participate
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in the Employer's annual bonus compensation plan, a copy of which is attached
hereto as Schedule "A" (the "Bonus Compensation Plan").
4.05 Automobile Allowance: The Employee shall be entitled to receive a car
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allowance of $825.00 paid monthly.
4.06 Equity: The Employee will receive 4.8% ownership of the Company upon
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joining the Company.
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4.07 Benefits: The Employee shall be entitled to participate in the
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employee benefit plans and programs which are generally made available to
employees of the Employer from time to time, as well as the Beamscope executive
benefit plan.
4.08 Stock Option Plan: Subject to the discretion of the Employer, the
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Employee shall be permitted to participate in any stock option plan that is
established by the Employer.
4.09 Vacation: The Employee shall be entitled to four (4) weeks vacation
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leave during each full year that this Agreement is in effect at the Base Salary
provided for in Section 4.01 herein. Such vacation to be taken at such time or
times as the Employer may determine having regard to the business and
undertaking of the Employer and having regard to the dates requested by the
Employee. In the event that the Employee's employment is terminated, the
Employee shall be entitled to a pro-rated vacation leave with pay for the
portion of the year that he has been actively employed. During the initial year
of the Employee's employment with the Employer, his vacation leave shall be pro-
rated to the date on which he commenced employment with the Employer.
4.10 Expenses: The Employee shall be reimbursed for all reasonable travel,
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business and entertainment expenses incurred by him in the performance of his
duties hereunder, subject to such limits as may be established by the Employer
and revised by it from time to time. As a condition to the reimbursement of
such expenses, the Employee shall furnish to the Employer receipts for expenses
incurred.
ARTICLE FIVE - TERMINATION OF EMPLOYMENT
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5.01 Termination by Employer: This Agreement, and the employment
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contemplated hereunder, may be terminated in the following manner and in the
following circumstances:
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(a) by the Employer, at any time, for Just Cause, in which case the
employment of the Employee and this Agreement shall terminate
immediately upon written notice from the Employer to the Employee. In
the event of any termination for Just Cause, the Employee shall be
entitled to receive any outstanding Base Salary, Bonus Compensation,
and vacation pay which has accrued to the effective date of such
termination. Upon receipt of such notice by the Employee, the
Employer shall be under no further obligation to provide the Employee
with pay in lieu of reasonable notice, severance pay or termination
pay whether under statute or at common law;
(b) upon the death of the Employee, in which case the employment of the
Employee and this Agreement shall terminate on the date of the
Employee's death. In the event of such termination, all outstanding
Base Salary, Bonus Compensation and vacation pay which has accrued to
the effective date of termination shall be paid to the Employee's
estate; and
(c) by the Employer, by providing Employee with the greater of (i)
eighteen (18) months' written notice of termination of employment, or
pay in lieu thereof. Upon receipt of such notice, or pay in lieu
thereof (and severance pay if applicable), by the Employee, the
Employer shall be under no further obligation to the Employee.
5.02 Termination by Employee: This Agreement and the employment
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contemplated hereunder may be terminated by the Employee for any reason and at
any time by providing to the Employer two (2) weeks notice in writing of his
termination of employment. The Employee shall be entitled to receive all Base
Salary and vacation pay which accrues to the effective date of such termination.
5.03 Release of Claims: If any of the events referred to in Sections 5.01
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or
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5.02 occur, this Agreement and the employment of the Employee shall be wholly
terminated except in respect of the Employee's obligations pursuant to Sections
6 and 7 and the Employer's rights pursuant to Section 8 which shall survive such
termination and continue in full force and effect. Upon any such termination,
the Employee shall have no claim against the Employer for damages, wages, bonus,
termination pay, severance pay, pay in lieu of notice of termination, statutory
or otherwise, except in respect of payment of remuneration earned, due and owing
to the effective date of termination.
5.04 Reasonableness: The parties hereto acknowledge and agree that there are
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no implied rights whatsoever with respect to the termination of this Agreement
and the employment contemplated hereunder. The parties further acknowledge and
agree that if the payment referred to in Subsection 5.01(c) is made, it
constitutes a reasonable estimate of the damages that might be suffered by the
Employee for early termination of this Agreement, said amount being liquidated
damages and not a penalty.
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ARTICLE SIX - CONFIDENTIALITY
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6.01 Confidential Information: The Employee acknowledges that during the
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course of his employment, the Employee will be exposed to secret and
confidential business information belonging to the Employer, its affiliates and
associates which gives it a commercial advantage over others. Except as may be
required by law, the Employee agrees to not use, directly or indirectly, for his
own account or for the account of any person, firm, corporation or other entity
or disclose to any person, firm, corporation or other entity, any of the
Employer's or its affiliates' or its associates' proprietary information
disclosed or entrusted to him or developed or generated by him in the
performance of his duties hereunder, including but not limited to, information
relating to the Employer's and/or its affiliates' and/or its associates'
organizational structure, operations, business plans, technical projects,
pricing data, business costs, research data results, inventions, trade secrets,
customers lists, customer prices or other work produced, developed by or for the
Employer or its affiliates or its associates, whether on the premises of the
Employer or elsewhere.
6.02 Exceptions: The provisions of Section 6.01 shall not apply to any
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proprietary, confidential or secret information which is, at the commencement of
the term of this Agreement or at some later date, publicly known under
circumstances involving no breach of this Agreement or is lawfully and in good
faith made available to the Employee without restrictions as to disclosure to a
third party.
6.03 Property and Documents: The Employee acknowledges, understands and
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agrees that all memoranda, notes, records, charts, formulae, client lists, price
lists, marketing plans, office products including, but not limited to, personal
computers, fax machines, printers and photocopiers, financial information and
other documents made, received, held or used by the Employee during the course
of his employment shall be the property of the Employer and shall be delivered
by the Employee to the Employer upon request at any time during the course of
employment or on termination of employment as hereinbefore provided. The
Employee
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acknowledges and agrees that he shall not retain any copies of such
documentation without the written consent of the Employer. With respect to all
confidential information and other documents of the Employer held by the
Employee, the Employee acknowledges that he is in a position of trust and
subject to a fiduciary duty to use the information only in the interests of the
Employer and its business.
6.04 Inventions and Improvements: Any and all inventions and improvements
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which the Employee may conceive or make, during the period of his employment,
relating to or in any way appertaining to or connected with any of the matters
which have been, are or may become the subject of the Employer's investigations,
or which the Employer has been, is or may become interested, including, but not
limited to, product design, computer software or technology, shall be the sole
and exclusive property of the Employer, and the Employee will, whenever
requested by the Employer, execute any and all applications, assignments and
other instruments which the Employer shall deem necessary in order to apply for
and obtain Letters of Patent or Copyrights of Canada or foreign countries for
the inventions or improvements, and in order to assign and convey to the
Employer all sole and exclusive right, title and interest in and to the
inventions or improvements, all expenses in connection with them to be borne by
the Employer.
ARTICLE SEVEN - INJUNCTIVE RELIEF
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7.01 Injunctive Relief: The Employee acknowledges and agrees that in the
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event of any violation of the covenants provided for in Sections 6, the Employer
shall be entitled as a matter of course to injunctive relief in addition and
without prejudice to any other remedy the Employer may have at law.
ARTICLE EIGHT - GENERAL
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8.01 Headings: The division of this Agreement into Articles and Sections
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and the insertion of headings are for the convenience of reference only and
shall not
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affect the construction or interpretation of this Agreement.
8.02 Enurement: This Agreement shall enure to the benefit of and be
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binding upon the heirs, executors, administrators and legal personal
representatives of the Employee and the successors and permitted assigns of the
Employer, respectively.
8.03 Entire Agreement: This Agreement constitutes the entire agreement
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between the parties with respect to the subject matter hereof and cancels and
supersedes any prior understandings and agreements between the parties hereto
with respect thereto. There are no representations, warranties, terms,
conditions, undertakings or collateral agreements, express, implied or statutory
between the parties other than as expressly set forth in this Agreement.
8.04 Amendments: No amendments to this Agreement shall be valid or binding
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unless set forth in writing and duly executed by both of the parties hereto. No
waiver of any breach of any provision of this Agreement shall be effective or
binding unless made in writing and signed by the party purporting to give the
same and unless otherwise provided in the written waiver, shall be limited to
the specific breach waived.
8.05 Invalidity: If any provision of this Agreement is determined to be
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invalid or unenforceable in whole or in part, such invalidity or
unenforceability shall attach only to such provision or part thereof and the
remaining part of such provision and all other provisions hereof shall continue
in full force and effect.
8.06 Further Assurances: The parties shall do all such further acts and
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things and provide all such assurances and deliver all such documents in writing
as may be required from time to time in order to fully carry out the terms,
provisions and intent of this Agreement.
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8.07 Notice: Any demand, notice or other communication to be given in
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connection with this Agreement shall be in writing and given by delivery or
sending it by telecopy or other similar form of communication addressed:
To the Employer:
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Ironside Technologies Inc.
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Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇
To the Employee:
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Any such notice, direction or other instrument given as aforesaid shall be
deemed to have been effectively given, if sent by telecopier or other similar
form of telecommunications on the next business day following such transmission
or, if delivered, to have been received on the date of such delivery. Any party
may change its address for service from time to time by notice given in
accordance with the foregoing and any subsequent notice shall be sent to the
party at its changed address.
ARTICLE NINE - GENERAL
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9.10 Jurisdiction: This Agreement shall be governed by and construed in
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accordance with the laws of the Province of Ontario.
IN WITNESS WHEREOF this Agreement has been executed by the parties
hereto on the date first above written.
SIGNED, SEALED and DELIVERED
in the presence of:
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/s/ ▇.▇. ▇▇▇▇▇▇
__________________________ ________________________________________
▇.▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ TECHNOLOGIES INC.
By: ____________________________________
By: ____________________________________
SCHEDULE "A"
BONUS COMPENSATION PLAN - FY98 (April 1, 1997 to March 31, 1998)
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EMPLOYEE NAME: ▇▇▇▇ ▇▇▇▇▇▇
EFFECT DATE: April 1, 1997
JOB TITLE: President & CEO
Bonus Compensation will be paid quarterly based on meeting the revenue
milestones that have been set out and agreed to the Board of Directors.
For the purposes of this Bonus Compensation Plan, the following terms
have the following meanings:
"Revenue Milestones" - means gross revenue;
"Profit Milestones" - means net income before taxes
"Bonus" - means any amounts earned by the Employee in accordance with
this Bonus Compensation Plan and are calculated in accordance with the bonus
incentive chart set forth below.
Bonuses to be Paid
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Meeting Quarterly Milestones generates a Quarterly Bonus = 25% x
$250,000
Meeting Annual Milestones generates the difference between Quarterly
Bonuses paid and $250,000.
