EX-10.14
CHAMPIONLYTE PRODUCTS, INC.
0000 X. X. Xxxx Xxxxx Xxxx.
Xxxx Xxxxx, XX 00000
February 5, 2002
Xx. Xxx X. Xxxxxxxxx
0000 Xxxxxxxxxxx Xxxxx
Xxxx Xxxxx, Xxxxxxx 00000
Re: Employment Agreement
Dear Don:
This will confirm the terms under which ChampionLyte Products,
Inc. ("Company") has agreed to employ you and under which you have agreed to be
employed by the Company:
1. Employment commencement date: January 28, 2002
2. Employment termination date: April 30, 2002
3. Title: Interim Chief Operating Officer
4. Responsibilities: You will have general responsibility for
marketing, sales and operations of the Company, and will
report to the President and CEO.
5. Compensation: As compensation for your services, we will
grant you options under the Company's 1999 Stock Incentive
Plan to purchase 100,000 shares of the Company's Common
Stock at the price of $.10 per share (the "Exercise
Price"). The term of the options will be 5 years from the
date of vesting in accordance with the following
paragraph.
6. Vesting of Stock Options: Stock options will vest after
the employment termination date in accordance with the
schedule set forth below:
33,333 options on April 30, 2002; 33,333
options on July 31, 2002; and 33,334
options on October 31, 2002.
Solely in connection with the first installment of options
to be issued on April 30, 2002, you have the option to
exercise all or some of such options on a cashless basis,
subject to a maximum cash benefit of $15,000. Exercising
the options on a "cashless basis" shall mean that upon
your surrender of an option to purchase a share of Common
Stock, the Company will pay you an amount equal to the
excess of (i) the average between the final bid and asked
prices of the Company's Common Stock on the date of
exercise over (ii) the exercise price of the option. To
the extent that fewer than all of the options issued on
April 30, 2002 are exercised on a cashless basis, whether
because the maximum cash benefit has been reached or
because you elect to do so, the remaining options may
still be exercised in accordance with Paragraph 7.
If the Company terminates you without cause prior to
the termination date, the number of options will be
prorated by dividing the number of days worked for the
Company during the term by the total number of working
days during the term and multiplying the result by
100,000.
If the Company terminates you for cause or you
terminate your employment voluntarily prior to the
termination date, than the stock options will not vest.
7. Termination for Cause: The Company may terminate you for
cause at any time during the term on three (3) days notice
due to dishonesty, fraud or similar misconduct in the
conduct of your employment or your commission of a crime
of moral turpitude during the term of the employment
period.
8. Renewal: Upon the completion of the employment term,
employment may be continued upon the mutual agreement of
the parties.
Please confirm your agreement to the foregoing by signing and
dating in the place provided.
We are delighted that you have joined our team and we are
looking forward to a successful term.
Sincerely,
CHAMPIONLYTE PRODUCTS, INC.
BY: /s/ Xxxx Xxxxxx
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XXXX XXXXXX
CHIEF EXECUTIVE OFFICER
/s/ Xxx X. Xxxxxxxxx
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XXX X. XXXXXXXXX
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DATE
