Exhibit 10(i)
MANAGEMENT AGREEMENT
THIS AGREEMENT is dated for reference the 15th day of March, 2000.
BETWEEN:
X-XXXX.XXX, INC., a company incorporated pursuant to the laws of the
State of Minnesota and having it registered and records offices at
#000-000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, X.X. X0X IN5
(the "Company")
OF THE FIRST PART
AND:
Xxxx Xxxxxx, of 000 Xxxxxx Xx. Xxxxxxxx, XX 00000
(the "Manager")
OF THE SECOND PART
WHEREAS:
A. The Company is listed on NQB and is a fully reporting Company engaged in,
inter alia, the Business of interact related activities;
B. The Company has agreed to employ the Manager as administrator and manager
of the affairs of the Company on the terms and conditions hereinafter set
forth;
C. The Manager has agreed to be employed by the Company upon the terms and
conditions hereinafter set forth..
NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises
and mutual covenants and agreement herein contained, the parties hereto covenant
and agree each with the other as -follows:
1. SALARY
1.01 The Manager will faithfully, honestly and diligently serve the Company in
the capacity of administrator and manager in consideration of which the Company
will pay to the Manager the
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sum of $ 5,000,000 monthly, or such greater sum as may be approved by the Board
of Directors; of the Company and by regulatory authorities.
1B. MANAGER'S EXISTING BUSINESS
The company understands that the Manager has amassed a considerable account
base of existing business "Existing Business" serviced through Xxxxxx
Advertising or Meir Kabtan/Xxxx Xxxxxx Public Relations. It is expressly
understood by the Company that the Manager's Existing Business remains the
possession of Xxxxxx Advertising and/or Meir Kabtan/Xxxx Xxxxxx Public Relations
and the manager is at liberty to service it in the way he deems in the best
interests of the Existing Business.
1C. ANNOUNCEMENT OF MANAGER'S APPOINTMENT
The company understands the importance to the Manager that Existing
Business doesn't deem this Manager appointment as adversely affecting the
Manager's ability to service their business. The company therefore agrees to
allow the Manager veto rights regarding the precise wording of all releases
relating to the Manager in order to accommodate this concern.
2. DUTIES.AND DEVOTION OF TIME
2.01 It is acknowledged and agreed by the Manager that the work of the Manager
is and will be of such a nature that regular hours may be impossible, and there
may be occasions in which the Manager will not be required to work a full eight
hours per day and/or a full five days per week. It. is also anticipated that
there will be certain evenings, weekends and holidays during which the Manager
will be required to work, with the exception of the Jewish Sabbath and Holy
Days. The Work of the Manager is of a supervisory nature, and accordingly the
Manager agrees that the consideration herein set forth will be in full and
complete satisfaction for the Manager's work and services no matter how or when
performed, and the Manager hereby releases the Company from any claims for
overtime pay or compensation whatsoever which the Manager might have by reason
of any existing or future legislation or otherwise.
2.02 During the term of this Agreement the Manager shall:
1. Spearhead opportunities that exist for the Company and its website to
receive news coverage in print, electronic and web news outlets.
2. Pursue new contracts and leads that originate from the E-BIDD website for
the Company,to provide advertising content, joint venture business proposal
and in house advertising all for revenue generating [internet media]
business and overseeing the servicing of the business directly through E-
BIDD or through Xxxx Xxxxxx Public Relations or Xxxxxx Advertising.
3. Provide ongoing opinion to the Company website, including the pursuit of
website content and the layout to facilitate the needs of new and existing
advertising clients.
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4. Work with the Company to provide content on the business, creative or stock
activities of the Company to existing and new media contacts in addition to
providing expert resources that would be tapped by such media for use in
their coverage of news stories that have overlapping content.
5. Pursue existing media contacts and creating new media contacts likely to
tap The Company in a range of story subjects that parallel the Company's
knowledge of subject [Internet Media] and related subject areas.
6. Bring, create, redefine subjects that are in the Company's range of
expertise and that are also potentially newsworthy, to the attention of
reporters, in order to offer the Company principals as experts who can be
sourced in stories thereupon.
7. Consult with the Company on joint ventures; technology applications and
activities that potentially constitute relevant news, in order to have the
Company face recognition technology reported on.
8. Provide reporting on new business applications, joint ventures proposals,
contracts and public relations activities pursued on behalf of the Company,
9. Provide strategy support for press conferences and trade shows in which the
Company takes part.
2.03 The Manager will, during the term of this Agreement, obtain the consent of
the Board of Directors of the Company before becoming a director or senior
officer of any company other than the Company or Xxxxxx Advertising or Xxxx
Xxxxxx Public Relations, such consent not to be unreasonably withheld.
2.04 In conducting the Manager's duties under this Agreement, the Manager will
report to the Company's Board of Directors and will act consistently with their
directives and policies.
3. TERM OF EMPLOYMENT AS MANAGER
3.01 The effective date of this Agreement is March 8, 2000 and the employment of
the Manager hereunder will, from such date, continue until terminated in
accordance with the terms of this Agreement.
4. REIMBURSEMENT FOR EXPENSES
4.01 The Manager will be reimbursed for all reasonable out-of-pocket expenses
incurred by the Manager in or about the execution of the Manager's employment
,including, without limiting the generality of the foregoing, all travel and
promotional expenses payable or incurred by the Manager in connection with his
duties under this Agreement.
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All payments or reimbursements will be made immediately upon submission by the
Manager of vouchers, bills or receipts for all expenses; provided, however, that
all such expenses in excess of $2,500.00 are approved by the Company in writing
prior to the Manager incurring same,
5. INCAPACITY
5.01 In the event that the Manager will at any time during ttle term hereof by
reason of illness or mental or physical disability or incapacity be prevented or
incapable from performing the Manager's duties hereunder, then the Manager will
be entitled to receive the remuneration provided for herein for the period
during which such incapacity will continue but not exceeding two (2) successive
months and, if such incapacity will continue for a longer period, then the
employment of the Manager hereunder will, at the option of the directors of the
Company, forthwith terminate, and the Manager will not be entitled to any
compensation from the Company in respect of such termination.
6. INTERRUPTION OF THE COMPANY'S BUSINESS
6.01 If during the term of this Agreement the Company discontinues or interrupts
the operations of its business for a period of ninety (90) days, this Agreement
will automatically terminate without liability on the part of either of the
parties hereto.
7. TERMINATION OF AGREEMENT
7.01 Notwithstanding any other 'provision herein, it is understood and agreed by
and between the parties hereto that the Manager may resign his employment
hereunder by giving sixty (60) days written notice of such intention to resign,
and the Company may terminate this Agreement in its entirely with or without
cause and for any reason whatsoever by the payment to the Manager of two months
salary as termination allowance, and the Manager does hereby agree that such
termination allowance will be payment in full for any discharge by the Company;
provided that the Company will not be liable to pay any further monies,
notwithstanding that such termination of employment may be without cause; and
the expression "such further monies" will include, without restriction the
generality of the foregoing holidays, holiday pay, Canada Pension Plan
contributions and any, and all other monies arising out of the employment by the
Company,
8. VACATION
8.01 The Manager will be entitled to annual holiday (consecutive or otherwise as
the Manager sees fit) which will be taken at a time or times, to be arranged in
advance with the company so it does not unduly affect the operations of the
Company
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9. ARBITRATION
9.01 Any controversy or claim arising out of or relating to this Agreement or
any breach of this Agreement will be finally settled by arbitration in
accordance with the laws of the State of Minnesota.
10. PERSONAL CONTRACT
10.01 This Agreement and all other rights, benefits and privileges herein
confirmed will be personal, and accordingly may not be assigned by the Manager.
11. ADDRESS FOR SERVICE
11.01 The address for service for any notice, consent, acceptance or other
document required or permitted hereunder shall be forwarded to the either party
to the address set forth on the first page of this Agreement or to such other
address as either of the parties hereto will from time to time by notice in
writing give to the other party. Any notice mailed by first class prepaid mail
will be deemed to have been received three (3) days after the date of mailing;
provided, however, that if there should be a postal strike, slow down or other
labour dispute which may affect the delivery of such notice through the mail
between the time of mailing and the actual receipt of the notice then such
notice will be effective only if actually delivered.
12. ENTIRE AGREEMENT
12.01 This Agreement represents the entire agreement between the parties and
supersedes all prior agreements and undentandings, whether written or oral,
between the parties. The Manager acknowledges that he was not induced to enter
into this Agreement by any representation warranty, promise or other statement
except as contained herein.
13. AMENDMENT
13.01 This Agreement may not be amended or otherwise modified except by an
instrument in writing by both parties.
13.02 This Agreement becomes effective upon both parties' signature and upon
completion of stock purchase outlined in a separate stock purchase agreement
with same parties.
13.03 This Agreement does not preclude the Manager from conducting and
participating in the business activities of Xxxx Xxxxxx Public Relations or
Xxxxxx Advertising.
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14. APPLICABLE LAW
14.01 This Agreement will be construed under and governed by the laws of the
State of Minnesota.
15. ACCEPTANCE OF AGREEMENT
15.01 This Agreement is subject to the approval of the board of directors of the
Company and acceptance by all regulatory authorities as may have jurisdiction
over the affairs of the Company.
16. COVENANTS
16.01 Disclosure information. During the Term and thereafter, the Manager shall
not, at any time, directly or indirectly, disclose any confidential or
proprietary information for any reason or purpose whatsoever to any person,
firm, corporation, association or other entity, except in the ordinary course of
business of the Company or any subsidiary thereof or to legal and financial
advisors who agree in writing to maintain the confidentiality of such
confidential or proprietary information on terms substantially similar to those
stated here, nor shall the Manager directly or indirectly make use of any such
confidential or proprietary information for his own purpose or for the benefit
of any person, firm, corporation, association or other entity except the Company
or any subsidiary thereof, and the Manager hereby acknowledges that the Company
and its subsidiaries would be irreparably damaged if such confidential or
proprietary information were disclosed to or utilized on behalf of others in
competition in any respect with the Company or any subsidiary thereof for the
purposes of this Section 16, the term "confidential or proprietary information"
shall mean all information concerning the business, customers or affairs of the
Company or any subsidiary thereof, including matters such as trade secrets,
research and development activities, books and records, customer lists,
suppliers, distribution channels, pricing information, private processes,
software, functional specifications, blueprints, know-how, data, improvements,
discoveries, designs, inventions, techniques, marketing plans, strategies,
forecasts, new products and financial statements as they may exist from time to
time, which the Manager may have acquired or obtained by virtue of his
relationship with the Company or any subsidiary or affiliate thereof, except for
such information which (i) becomes generally available to the public, other than
as the result of a disclosure made directly or indirectly by the Manager, (ii)
was known to the person, firm, corporation or other entity to which such
information was disclosed by the Manager prior to its disclosure directly or
indirectly by the Manager, (iii) was previously available to the person, firm,
corporation or other entity to which such information was disclosed directly or
indirectly by the Manager on a non-confidential basis from a source which was
entitled to disclose the same or (iv) if required by law, governmental order or
decree to be disclosed by the Manager.
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16.02 Restrictive Covenant. During the term of his employment and for one year
thereafter, the Manager shall not (i) directly or indirectly engage in,
represent in any way, or be connected with, any business or activity (such
business or activity being hereinafter called a "Competing Business"), which
owns, manages, operates or franchises a business developing, or selling
advertising, media services, media and public relations and media exposure on
the Internet, whether such engagement shall be as an officer, director, owner,
employee, partner, affiliate or other participant in any Competing Business,
(ii) assist others in engaging in any Competing Business in the manner described
in the foregoing clause (i), or (iii) induce other employees of the Company to
terminate their employment with the Company for the purposes of engaging in any
Competing Business; provided, however, that the Manager may own directly or
indirectly, solely as a passive investment, securities of any person engaged in
a Competing Business, if such securities are listed on any national securities
exchange and the Manager is not a controlling person of, or a member of a group
which controls, such person and does not, directly or indirectly, own 5% or more
of any class of securities of such person.
16.03 Injunctive Relief. The Manager acknowledges that the provisions of this
Section 16 are reasonable and necessary for the protection of the Company and
that the Company will be irrevocably damaged if such covenants are not
specifically enforced. Accordingly, the Manager agrees that, in addition to any
other relief to which the Company may be entitled in the form of actual or
punitive damages, the Company shall be entitled to seek and obtain injunctive
relief from a court of competent jurisdiction for the purposes of restraining
the Manager from any actual or threatened breach of such covenants.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day
and year first above written.
The Corporate Seal of X-XXXX.XXX, INC. )
was hereunto affixed in the presence of. )
) c/s
/s/ )
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Authorized Signatory )
Signed, sealed and delivered by )
Xxxx Xxxxxx in the presence of: )
)
/s/ Xxxx Xxxxxx )
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Signature )
)
Xxxx Xxxxxx )
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Name (Print) ) /s/ Xxxx Xxxxxx
) ----------------------
000 Xxxxx Xx, Xxxxxxxx XX 00000 ) Xxxx Xxxxxx
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Address
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)
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Occupation )
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