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EXHIBIT 6.2
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT was entered into the 12th day of February
1999, by and between MIRACOM CORPORATION (hereinafter, the "Employer") and ▇▇▇▇▇
▇. ▇▇▇▇▇▇▇▇ (hereinafter, the "Employee").
In consideration of the Employee's employment and possibility for
promotion, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Employee hereby agrees as
follows:
1. PURPOSE. The purpose of this Agreement is to set forth the terms and
conditions of Employee's employment and to define the obligations between
Employee and Employer regarding trade secrets, as defined in Florida Statutes
Section 688.002(4), including, without limitation, Confidential Information (as
defined herein) belonging to the Employer, inventions and intellectual property
created, in whole or in part, by the Employee, communication with the Employer's
customers and retention of the employees of the Employer. Employee recognizes
that the business of Employer and the nature of Employee's employment will
permit Employee to have access to trade secrets and Confidential Information of
Employer and to its Clients, and that such trade secrets and Confidential
Information are the exclusive property of Employer, disclosure of which would be
prejudicial to Employer's business interests and cause the Employer irreparable
harm. Notwithstanding any other provision of this Agreement, the Employer and
Employee agree that Employee is not prohibited from owning, operating or
performing services for the unrelated business(es) in which he is currently
involved and which are specifically identified on SCHEDULE 1 hereto.
2. DEFINITIONS
(a) "EMPLOYER" shall mean MIRACOM CORPORATION and all of its divisions,
subsidiaries, affiliates and any successors or assigns.
(b) "CLIENT" shall mean any person or entity with whom Employer conducts
business or from whom Employer or Employee obtains information
concerning the business and industry in which Employer operates,
including, but not limited to, customers, consultants, advisors and
suppliers of the Employer.
(c) "TRADE SECRET" shall have the meaning set forth in Florida Statutes
Section 688.002(4), and shall include, without limitation, ideas,
information, compilations, computer programs and related data bases
which are not described in any literature published and distributed
publicly by Employer and which are not readily ascertainable from
inspection of commercially available sources, including, but not
limited to, computer programs written by and for the Employer, data
bases, generated reports, related proprietary information and
marketing studies.
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(d) "CONFIDENTIAL INFORMATION" shall mean all information pertaining to
the business of Employer or Clients which is of value to Employer,
is not generally known to Employer's competitors or to the public,
and is treated as confidential by Employer and Clients, including,
but not limited to, (i) information pertaining to product research
and development; (ii) existing and future business and marketing
plans; (iii) financial, accounting, sales and purchasing data; (iv)
customer and supplier identity; (v) personnel matters; (vi)
techniques, policies and procedures related to the operation of
Employer and Clients; (vii) terms of relationships with Clients;
(viii) identity of prospective Clients; (ix) identity of business
opportunities available to Employer; and (x) inventions and
intellectual property of the Employer.
(e) "INVENTION" shall mean any discovery, idea, improvement or
contribution, whether or not patentable, including, but not limited
to, any computer program, process, method, formula or technique, as
well as improvements thereto, which is new or which Employer
reasonably believes may be new.
(f) "WORK" shall mean any written, typed or printed material prepared,
in whole or in part, by Employee during the term of his employment
hereunder including, but not limited to, technical descriptions of
products, computer software, user guides, illustrations, advertising
materials, training manuals, contracts and any contributions to any
such material.
3. TRADE SECRETS. During and at any time subsequent to termination of
his employment by Employer, Employee will not disclose or otherwise
misappropriate any Trade Secret of the Employer for his own use or for the use
of any person, corporation, partnership, firm or other entity.
4. CONFIDENTIAL INFORMATION. During his employment, and for a two (2)
year period following termination of employment, Employee will not disclose or
misappropriate any Confidential Information for his own use or for the use of
any person, corporation, partnership, firm or other entity. Employee shall not
remove any writings containing Confidential Information from the premises or
possession of Employer or its Clients, or make copies or memoranda thereof.
Furthermore, Employee will deliver promptly to Employer, at termination of his
employment, or at any time Employer may so request, all copies and originals of
any writings containing Confidential Information which Employee may possess or
have or have had under his control.
5. NON-SOLICITATION. During his employment, and for a two (2) year
period following termination of employment, Employee will not, either directly
or indirectly, consult, call upon, solicit, divert or take away or attempt to
solicit, divert or take away, any actual or targeted prospective Client of
Employer who has been a Client or targeted prospective Client of Employer at any
time during the 12-month period preceding termination of Employee's employment.
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6. NON-SOLICITATION OF EMPLOYEES. During his employment, and for a two
(2) year period following termination of employment, Employee will not hire,
attempt to hire or employ, directly or indirectly, any employee of Employer.
During such period, Employee will not encourage or induce any employee of
Employer to leave the employment of Employer.
7. ASSIGNMENT OF RIGHTS.
(a) INVENTIONS. The Employee agrees that if he conceives of an
Invention or reduces an Invention to practice during his employment,
Employee will promptly provide a written description of the
Invention ("Invention Summary") to an officer of the Employer (other
than Employee). The Employee shall request that such officer
acknowledge in writing the receipt of such Invention Summary, a copy
of which both Employee and Employer shall retain in their records.
The Employer shall have thirty (30) days to provide written notice
to Employee whether or not it wishes to claim an interest in the
Invention. If timely notice is given to Employee that Employer
claims an interest in the Invention, Employee agrees that such
Invention, and all patent rights to such Invention, shall become the
exclusive property of Employer, and the Employee hereby irrevocably
assigns to Employer any and all of Employee's rights to such
Invention. Employee agrees that should Employer elect to file an
application for patent protection, either in the United States or in
a foreign country, Employee will execute all necessary papers,
including formal assignments to Employer relating to such patent
applications. The Employee further agrees that he will cooperate
with any attorney or other person, will explain the nature of the
Invention, as required, will review applications and other papers
and will provide any other cooperation reasonably required for the
orderly filing and/or prosecution of such patent applications.
(b) WORK. The Employee agrees that any Work created by Employee in
the course of performing Employee's duties hereunder and on behalf
of Employer are deemed "work for hire" within the meaning of Title
17 of the United States Code. Accordingly, all right, title and
interest to the intellectual property rights for any and all such
Work, which have been or will be prepared by Employee, shall be the
property of Employer. Employee further agrees to assign to Employer
any and all right, title and interest to any copyrights which
Employee may have in any such Work.
8. EMPLOYMENT AND TERM. The Employer agrees to employ and Employee
agrees to be employed by Employer for the period stated herein and upon the
terms and conditions provided in this Agreement. The term of full-time
employment shall be for a period of three (3) years, commencing on October 1,
1998 (the "Commencement Date"), and terminating on the third anniversary
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thereof; PROVIDED THAT on each anniversary of the Commencement Date, the term
shall be extended for an additional one (1) year, so that on each anniversary
date, the remaining term is three (3) years, unless otherwise terminated in
accordance with Section 19 or Section 20, or as mutually agreed between the
parties.
9. COMPENSATION. The Employer shall pay the Employee for all services
contemplated under this Agreement as follows:
(a) A base salary of $124,800 per year, paid on a weekly basis
(the "Base Salary"). The Base Salary shall be increased, but shall
not be decreased, on each October 1st (the "Anniversary Date") by a
percentage which equals the sum of three percent (3%) plus that
percentage by which the Consumer Price Index, for the Orlando,
Florida area, published by the United States government (the
"INDEX"), for the immediately preceding calendar year exceeds such
Index for the next preceding calendar year. If publication of the
Index is discontinued, the parties hereto shall accept comparable
statistics on the cost of living for the Orlando, Florida area as
computed and published by an agency of the United States government,
or if no such agency computes and publishes such statistics by any
regularly published national financial periodical that does compute
and publish such statistics;
(b) Such other benefits that the Employer may offer to other
senior level management of the Employer and/or members of the board
of directors of the Employer (the "Board of Directors" or the
"Board") from time to time, which benefits may but do not
necessarily include stock options in addition to those contemplated
by Section 17 and performance bonuses;
(c) When a 401(k) plan is established by Employer, a matching
contribution to Employee's 401(k) account equal to a minimum of
twenty-five percent (25%) of Employee's contribution to such plan,
subject to the dollar limitations as provided in the Internal
Revenue Code of 1986, as amended from time to time; and
(d) A minimum of sixty percent (60%) of the cost of Employee's
medical insurance coverage provided by Employer's medical plan.
The Employer shall be entitled to deduct and withhold amounts legally required
to be withheld for items such as income taxes, FICA, FUTA, etc.
10. DUTIES. The Employee is bringing unique experience, contacts and a
database to the Employer, which the Employee agrees to use to the benefit of the
Employer in the development of its commercial operations. The Employee is
engaged to act as the Co-Chief Executive Officer and Chief Technical Officer of
the Employer and shall be responsible for (a) rendering assistance to the
Chairman and other Co-Chief Executive Officer and carrying out the
responsibilities delegated to him by the Board of Directors in connection
therewith (b) serving as the Employer's chief technical officer overseeing the
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development of hardware and software, (c) together with the other Co-Chief
Executive Officer, exercising all of the duties of the President in his absence
or his inability to act, and (d) such additional responsibilities as the Board
may determine to be in the best interest of the Employer, and which are
appropriate for a Co-Chief Executive Officer and Chief Technical Officer.
Employee shall report directly to the Board of Directors. The Employee agrees to
serve capacities, without further compensation, unless the Employee's duties and
responsibilities substantially change or increase, or unless mutually agreed
otherwise. Employee will use his best efforts to promote the interests of the
Employer.
11. EXTENT OF SERVICES. The Employee shall not be required to devote his
entire time and attention to the Employer's business; PROVIDED, HOWEVER, that
Employee agrees to provide a minimum of forty (40) hours per week for services
on behalf of Employer (such forty (40) hours shall include time which the
Employee spends traveling from one destination to another destination on behalf
of the Employer but, other than travel time, shall not include time when the
Employee is not actually performing services on behalf of the Employer even
though the Employee may be away from home). Notwithstanding anything herein to
the contrary, the Employee will be called upon from time to time as an element
of his employment to develop business projects which will include the interests
of the Employee and the Employer or its subsidiaries, affiliates or joint
venture interests. Such activities are contemplated in this Agreement and form
an integral part of the Employee's employment.
12. WORKING FACILITIES. The Employee shall have a private and adequate
office, back-up staff, including secretarial assistance in all of the offices of
the Employer in which Employee will be expected to perform his services, and
other adequate services and facilities necessary in order for the Employee to
fulfill the activities contemplated under this Agreement. The Employee will also
have the use of Employer-provided lodging and vehicles and an expense account in
order to fulfill his obligations and responsibilities under this Agreement and
for the development and the commercialization of the Employer's services.
13. DISCLOSURE OF INFORMATION. The Employee and Employer acknowledge
that Employee is coming to his position with unique data, contacts and
experience, distinct from those possessed generally by the Employer. These
contacts, data and information of the Employee are unique to the Employee and
will always be so considered. However, the Employee shall not, during the term
of his employment, disclose or use all or any part of the Employee's unique
knowledge, services or skills that are conceived or reduced to practice during
the term of Employee's employment, to any person, firm, corporation, association
or other entity for any reason or purpose, unless mutually agreed upon in
advance and in writing by the parties to this Agreement. All new projects and
information which are developed by the Employee during his employment with the
Employer shall be considered the Employer's unique knowledge, services or skills
and shall not be taken, disclosed or developed for a project with any third
parties by the Employee, unless agreed upon in advance and in writing by the
Employer upon termination of the Employee's employment.
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14. EXPENSES. The Employee may incur reasonable expenses for the
commercialization of the Employer's services and products, including reasonable
expenses for entertainment, travel and similar items. The Employer shall
reimburse the Employee for all such reasonable expenses, which have been
approved by Employer, within thirty (30) days of the Employee's presentation of
an itemized accounting of such expenditures. In the event Employee incurs
expenses on behalf of the Employer, or Employer pays for expenses of Employee
which are not reimbursable hereunder, Employee agrees to immediately reimburse
Employer for such expenses. As soon as reasonably practicable, Employer shall
secure a corporate charge card for Employee to use for reimbursable expenses
hereunder. The parties hereto acknowledge that if Employee has loaned funds to
the Employer prior to the execution hereof, the Employer shall repay Employee
such loans within ninety (90) days of the date hereof.
15. VACATIONS. The Employee shall be entitled each year to a vacation,
which period of time and date of scheduling will be mutually agreed upon by the
Employer and Employee; PROVIDED, HOWEVER, the Employee, in any case, shall be
entitled to not less than two (2) weeks vacation time per year, and cumulative
compensation for such vacation time shall be paid each year to the Employee if
such vacation is not taken; PROVIDED, FURTHER, that Employee shall be entitled
to carry over one (1) week of unused vacation from the preceding calendar year
to the current calendar year. Employee shall be paid the pro rata portion of his
regular Base Salary and all other benefits as specified in Section 9, hereunder,
during any vacation period. In the event vacation is not taken or vacation is
rolled over to the next year, compensation for such unused vacation, up to a
maximum of two weeks per calendar year, shall be paid on or before the end of
the calendar year if the Employee so desires and so requests in writing on or
before November 30 of that calendar year; PROVIDED; HOWEVER, that in the event
Employee has rolled over one (1) week's vacation from the preceding calendar
year, the Employee may be compensated for his unused vacation for the then
current calendar year (subject to the two week maximum per calendar year) plus
the one (1) week rolled over from the preceding calendar year and not used in
the then current calendar year.
16. OTHER BENEFITS. Employee shall be entitled to such other benefits
that the Employer may offer to its employees and its Board of Directors from
time to time, including, but not limited to, stock options, medical insurance
and disability insurance. The Employer agrees to pay Employee ten thousand
dollars ($10,000) per year as compensation for the performance of his services
as a member of the Board of Directors, which shall be paid on a pro rata basis
by the fifth (5th) day of the month following the month of board service. Such
compensation shall be in addition to the compensation to which Employee is
entitled under Section 9 hereof.
17. STOCK OPTIONS. Employer shall establish a stock option plan for its
employees, and/or officers (the "Stock Option Plan") and Employee shall be
entitled to participate in such Stock Option Plan.
18. DISABILITY. If the Employee is or becomes, by reason of illness or
incapacity, unable to perform the essential functions of his employment
hereunder, with or without reasonable accommodation, for a period of more than
four (4) weeks (a "Disability"), the compensation thereafter payable to him
during the continued period of such illness or incapacity shall be reduced
initially by twenty-five percent (25%) for the period beginning four (4) weeks
and ending six (6) months after such illness or incapacity begins and then by
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fifty percent (50%) if the incapacity or illness continues during the period
beginning six (6) months and one (1) day and ending one (1) year after such
illness or incapacity begins. If the Employee should be absent from his
employment for a period of more than one (1) year, the Employer will have the
option to terminate this Agreement for impossibility of execution but the
Employer may nonetheless decide to continue this Agreement with compensation
after one (1) year of incapacity. In the event the Employer secures a disability
insurance policy mutually acceptable to Employee and Employer, then Employer's
financial obligations under this Section 18 shall terminate provided that the
disability benefits under such policy equal or exceed the Employer's financial
obligations under this Section 18. In addition to the foregoing disability
payments, Employee shall retain the right to retain any stock options that are
exercisable on the date of termination of employment.
19. TERMINATION OF EMPLOYMENT.
(a) BY EMPLOYER FOR CAUSE. During the term of this Agreement, the
Employer may terminate this Employee's employment for "Cause"
(defined below) upon thirty (30) days' written notice. In the event
that Employee's employment with the Employer is terminated with
Cause, the Employee shall receive only (A) his Base Salary and
benefits earned but unpaid up to the date of termination of
employment, (B) the prorated portion of any bonuses earned but
unpaid up to the date of termination of employment, calculated based
upon a closing of the books of Employer as of the last day of the
month in which termination occurs and a proration of the annual
goals, if any were established for such year, based upon the portion
of the year that has expired prior to that date, and (C)
reimbursement for any expenses to which Employee is due
reimbursement under Section 14.
For purposes of this Section 19(a), the term "Cause" shall mean
any of the following:
(1) the Employee's willful or negligent failure or
refusal to comply with the written rules and regulations of
Employer from time to time established by the Board that shall
have been previously delivered to Employee, and that shall not
be inconsistent with the terms or conditions of this
Agreement, and Employee shall not have cured such failure or
refusal within 30 days following receipt of written notice
from Employer of such failure or refusal; PROVIDED, HOWEVER,
that if such failure or refusal is of such a nature that it
cannot be cured within such 30-day period, then, so long as
Employee shall have commenced such cure within such 30-day
period and shall have thereafter in good faith continued such
cure, Employee shall be deemed to have cured such failure or
refusal; or
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(2) the final (non-appealable or foreclosed from appeal)
conviction of Employee of any felony materially and adversely
affecting the property, reputation or goodwill of Employer or
its successors; or
(3) the Employee's willful failure or refusal to perform
or Employee's performance in a grossly negligent manner a
material part of his duties pursuant to the provisions of this
Agreement and Employee shall not have cured such failure or
refusal within 30 days following receipt of written notice
from Employer of such failure or refusal; PROVIDED, HOWEVER,
that if such failure or refusal is of such a nature that it
cannot be cured within such 30-day period, then, so long as
Employee shall have commenced such cure within such 30-day
period and shall have thereafter in good faith continued such
cure, Employee shall be deemed to have cured such failure or
refusal; or
(4) Employee's violation of the terms of Sections 3, 4,
5, 6, 7 or 13 of this Agreement.
(b) BY EMPLOYER WITHOUT CAUSE. In the event Employer terminates
the Employee's employment without Cause then, in addition to clauses
A through C in Section 19(a), above, (X) the Employer shall be
obligated to pay to the Employee Employee's annual Base Salary (at
the time of termination), on a weekly basis or consistent with the
Employer's payroll practices at the time, for a period of three (3)
years from and after the date of termination (the "Severance
Amount"); (Y) Employee shall have the right to retain any stock
options that were granted to Employee prior to the date of
termination of employment; and (Z) the Employer shall, at its sole
cost (except for Employee dependency coverage contributions, if any,
in effect prior to Employee ceasing to be employed by the Employer
hereunder) maintain in full force and effect from the date Employee
ceases to be employed by the Employer hereunder and for six (6)
months thereafter, all medical, health and accident, and disability
plans, programs, or arrangements in which Employee is entitled to
participate immediately prior to Employee ceasing to be employed by
the Employer hereunder, provided that Employee's continued
participation is possible under the general terms and provisions of
such plans and programs. In the event that Employee's participation
in any such plan or program is barred (other than as a result of a
misrepresentation or misconduct of Employee), the Employer shall
arrange at its sole expense to provide him with benefits
substantially similar to those which he is entitled to receive under
such plans and programs for the six-month term, including, without
limitation, reimbursement of COBRA premium payments. To the extent
that Employee mitigates his damages through the accrual or receipt
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of a salary, or the provision of health or other benefits referenced
hereinabove, through self-employment or employment with another
entity, the Severance Amount and/or applicable benefits referenced
hereinabove shall be adjusted by off-set of amounts or benefits
received by Employee in mitigation. Upon written request by
Employer, Employee shall provide to Employer information as to such
mitigation within ten (10) days of receipt of such request. If
Employee's employment is terminated without Cause, Employee shall be
deemed released from the non-competition provisions of Section 22 of
this Agreement upon such termination; PROVIDED, HOWEVER, Employee
shall not be deemed released from his obligations under Sections 3,
4, 5, 6, 7 or 13 of this Agreement.
(c) VOLUNTARILY BY EMPLOYEE. Employee may, at his option,
terminate his employment under this Agreement at any time upon
ninety (90) days prior written notice to Employer. If Employee
voluntarily terminates employment with Employer, then Employee shall
receive only (i) his Base Salary and benefits earned but unpaid up
to the date of termination of employment, (ii) two weeks salary,
calculated based on Employee's salary then in effect at the time of
termination of employment, (iii) the prorated portion of any bonuses
earned but unpaid at the time of termination of employment,
calculated in accordance with subsection (a)(ii) above; and, if
Employee voluntarily terminates his employment pursuant to Section
20, Employee shall also be entitled to retain any exercisable stock
options.
(d) If Employee is terminated for Cause, or if Employee
voluntarily terminates his employment (except in the event of a
Change of Control (defined below), any stock options granted to
Employee under a Stock Option Plan or otherwise shall terminate
immediately upon termination of employment.
(e) Employee's employment with the Company may not be terminated
for Cause under Section 19(a), above, or without Cause under Section
19(b), above, without the approval of a majority of the members of
the Board of Directors then in office.
20. TERMINATION BY EMPLOYEE UPON CHANGE OF CONTROL. The Employee may
terminate Employee's employment at any time by giving ten (10) days prior
written notice to the Employer upon a Change of Control. A "Change of Control"
means the occurrence of any of the following events after the date of this
Agreement:
(a) a change in control of the Employer occurring after the date of
this Agreement of a nature that would be required to be reported in response to
Item 1 of the Current Report on Form 8-K (or in response to any similar item on
any similar schedule or form) promulgated under the Securities Exchange Act of
1934 (the "Act"), whether or not the Employer is then subject to such reporting
requirement;
(b) any "person" (as such term is used in Sections 13(d) and 14(d)
of the Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Act), directly or indirectly, of securities of the Employer representing
twenty-five percent (25%) or more of the combined voting power of the Employer's
then outstanding securities without the prior approval of at least two-thirds of
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the members of the Board in office immediately prior to such person attaining
such percentage (excluding for this purpose, any acquisitions by (X) the
Employer or its subsidiaries, (Y) any person, entity or "group" that as of the
date of this Agreement owns beneficial ownership, as defined in Rule 13d-3 of
the Act, or (Z) any employee benefit plan of the Employer or its subsidiaries;
(c) the Employer is a party to a merger, consolidation, sale of
assets or other reorganization, or a proxy contest, as a consequence of which
members of the Board in office immediately prior to such transaction or event
constitute less than a majority of the Board of Directors thereafter; or
(d) during any period of two consecutive years, individuals who at
the beginning of such period constituted the Board (including for this purpose
any new director whose election or nomination for election by the Employer's
stockholders was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of such period) cease for
any reason to constitute at least a majority of the Board.
21. DEATH DURING EMPLOYMENT. Upon the death of Employee during the term
of employment, the Employer shall pay to Employee's estate the compensation that
would otherwise be payable to the Employee through the end of the month of his
death. In addition, three (3) months further compensation shall be paid in one
(1) lump sum to his surviving spouse or, if there is no surviving spouse, to the
surviving children of the Employee, or to his estate if there are no surviving
children.
22. NON-COMPETITION.
(a) During his employment, and for a period of two (2) years after the
expiration or termination of such employment (the "Noncompetition
Period"), Employee specifically agrees that Employee shall not
(except on the behalf of Employer or any of its affiliated entities
while Employee is employed by Employer), either directly or
indirectly, as a stockholder of any corporation or partner of any
partnership or as an employee, owner, principal or agent, or in any
other manner, engage in any business within a radius of 100 miles
from any location of Employer's business (the "Geographic Area"),
which competes with, in any manner, any business conducted by
Employer at the time of termination of this Agreement. Employee
agrees that so long as Employee is working for Employer, Employee
shall not undertake the planning or organizing of any business
activity competitive with the business of Employer. Employee agrees
not to directly or indirectly solicit any of Employer's employees to
work for Employee or for any business which is competitive with any
business conducted by Employer prior to the date on which Employee's
employment with Employer is terminated with Employer within the
Geographic Area and during the Noncompetition Period.
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(b) The periods of time during which Employee is prohibited from
engaging in such business practices pursuant to this Section 22
shall be extended by any length of time during which Employee is in
breach of any of such covenants. The restrictive covenants contained
within this Section 22 are essential elements of this Agreement, and
that, but for the agreement of Employee to comply with such
covenants, Employer would not have entered into this Agreement. If
any portion of the covenants set forth in this Section 22 are held
by a court of competent jurisdiction to be unreasonable, arbitrary
or against public policy, then such portion of such covenants shall
be considered divisible both as to time and geographical area.
Employer and Employee agree that, if any court of competent
jurisdiction determines that the Noncompetition Period or the
Geographic Area applicable to this Agreement is unreasonable,
arbitrary and/or against public policy, then a lesser time period or
geographical area which is determined to be reasonable,
non-arbitrary and not against public policy may be enforced against
Employee.
(c) Intentionally Omitted.
(d) Employee acknowledges that any violation of this Section 22 will
result in irreparable injury to Employer for which there is no
adequate remedy at law. Employee agrees that, in the event he
breaches or threatens to breach this Section 22, Employer, without
posting a bond, shall be entitled to injunctive relief, both
preliminary and permanent, in addition to any other remedies at law
or in equity available to Employer.
(e) If Employee's employment with Employer is terminated without Cause,
Employee shall be deemed released from his obligations under this
Section 22 upon such termination.
23. DISPUTES; ATTORNEYS' FEES. Except in the case of Employer's right
to seek injunctive relief under Section 22(d) and Section 24(b) of this
Agreement, the parties mutually agree to submit any controversy or claim arising
out of or proceeding forth from or relating to this Agreement or its breach to
be settled by arbitration (which may be binding if the parties mutually agree at
the time). Such arbitration shall be held in the County of Seminole, State of
Florida, utilizing the procedure and arbitrators acquainted with the American
Arbitration Association rules and procedure for arbitration. If binding
arbitration, judgment upon award rendered may be entered and enforced in any
court of competent jurisdiction. In the event any dispute arises under the terms
hereof, Employer shall continue to pay Employee the Base Salary and benefits to
which he is entitled hereunder until such time that a final determination is
made by an arbitrator hereunder; PROVIDED, HOWEVER, that if it is determined
that the termination of Employee's employment was justified, the Employee hereby
undertakes and agrees to repay to the Employer the amount of Base Salary that
was paid by Employer during the arbitration procedure. The non-prevailing party
shall be responsible for the prevailing party's reasonable legal fees and costs
(including post-judgment collection fees and costs).
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24. ENFORCEMENT.
(a) Whenever there is any conflict between any provision of this
Agreement and any law, statute, governmental rule, ordinance or
regulation, the latter shall prevail. In such event, the affected
provisions of this Agreement will be curtailed and restricted only
to the extent necessary to bring them within the legal requirements,
and the remainder of this Agreement shall not be affected. Should it
be determined that any provision of this Agreement is unenforceable,
the Employee specifically requests that the court or arbitrator
making such determination modify and reform the provision found to
be unenforceable, and in its modified form, specifically enforce the
Agreement.
(b) Employee acknowledges that any violation of Sections 3, 4, 5, 6, 7,
13 or 22 of this Agreement (referred to individually and
collectively in this subsection (b) as "Sections") will result in
irreparable injury to Employer for which there is no adequate remedy
at law. Employee agrees that, in the event he breaches or threatens
to breach any of such Sections, Employer, without posting a bond,
shall be entitled to injunctive relief, both preliminary and
permanent, in addition to any other remedies at law or in equity
available to Employer.
25. INDEMNIFICATION. Employee shall be indemnified in accordance with
the terms and provisions of that certain Indemnification Agreement, dated as of
the date hereof, between Employer and Employee.
26. CHOICE OF LAW. This Agreement and the performance hereunder and all
suits and special proceedings hereunder shall be construed in accordance with
the laws of the State of Florida. In any action, special proceeding or other
proceeding that may be brought arising out of, in connection with, or by reason
of this Agreement, the laws of the State of Florida shall be applicable and
shall govern to the exclusion of the law of any other forum, without regard to
the jurisdiction in which the action or special proceeding may be instituted.
All actions under this Agreement, if not resolved by arbitration, shall be taken
in a court of competent jurisdiction within Seminole County, Florida and
Employee hereby waives and agrees that he shall not assert that such forum is
inconvenient.
27. NOTICES. Any notice required or desired to be given under this
Agreement shall be deemed given if in writing and sent by certified U.S. mail,
or by Federal Express or other overnight delivery service to the Employee's
residence, or to the Employer's principal office, as the case may be.
28. WAIVER OF BREACH. Employer shall waive a breach by the Employee of
any provision of this Agreement only if such waiver is executed in writing by a
duly authorized officer of the Employer. Employee shall waive a breach by the
Employer of any provision of this Agreement only if such waiver is executed in
writing by Employee.
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29. ASSIGNMENT. Both parties acknowledge that the services of the
Employee and the Employer are unique to this Agreement and neither party may
assign the rights or delegate the duties of this Agreement to another.
Notwithstanding anything herein to the contrary, the Employee may perform his
unique services under this Agreement for any of the subsidiaries, affiliates or
joint ventures of the Employer.
30. ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties and may not be changed orally, but only by an agreement in
writing signed by the party against whom enforcement of any waiver, change,
modification, extension or discharge is sought.
31. HEADINGS. Headings in this Agreement are for convenience only and
shall not be used to interpret or construe the provisions hereof.
32. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.
33. WAIVER OF CONFLICT OF INTEREST. The parties acknowledge that,
notwithstanding Employee's use of Employer's attorneys for personal legal
matters unrelated to this Agreement, the Employer may continue to use the legal
counsel of its choice in connection with the resolution of any disputes between
the parties hereto without such representation constituting an improper or
ethical conflict of interest.
34. FURTHER ACTIONS. Each party to this Agreement shall take such
further actions to execute, file, record, publish and deliver such additional
certificates, instruments, agreements and other documents as the other party
may, from time to time, reasonably request, in order to accomplish the purposes
of this Agreement.
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35. APPOINTMENT TO BOARD OF DIRECTORS. Employee was appointed to the
Board of Directors in September 1998 and is entitled to receive the prorated
portion of the $10,000 annual director compensation.
IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement on the date and year indicated above.
EMPLOYEE: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
---------------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
EMPLOYER: MIRACOM CORPORATION
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
---------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: CO-CHIEF EXECUTIVE OFFICER
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AMENDMENT TO EMPLOYMENT AGREEMENT
This Amendment to Employment Agreement ("Amendment") was entered into
effective November 8, 1999, by and between MIRACOM CORPORATION (hereinafter, the
"Employer") and ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ (hereinafter, the "Employee").
RECITALS
A. WHEREAS, on February 12, 1999, Employer and Employee entered into an
employment agreement (the "Employment Agreement"); and
B. WHEREAS, Employer and Employee desire to make certain modifications
to the Employment Agreement as hereinafter set forth.
NOW THEREFORE, in consideration of Employee's employment and
possibility of promotion, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, it is hereby agreed
that the Employment Agreement is amended in the following particulars:
1. Section 9 (COMPENSATION). Subsection 9(a) of the Employment
Agreement is hereby amended to change Employee's the Base Salary to $72,000 per
year, effective November 8, 1999, payable bi-weekly or otherwise in accordance
with Employer's standard payroll practices. Further amended and in accordance
with Employer's current standard payroll practice at the time, the employee
shall receive a base salary of $89,000 for the period August 30, 1999 through
October 24, 1999 and shall defer payment of the difference between the original
Base Salary ($124,800) and the newly adjusted amount ($89,000) for that same
time period. All other provisions of subsection 9(a) not amended hereby shall
remain the same.
2. Section 15 (VACATIONS). Section 15 is hereby amended in its entirety
as follows:
"(a) Employee shall be entitled each year to a vacation, which
period of time and date of scheduling will be mutually agreed upon
by Employer and Employee; PROVIDED, HOWEVER, the Employee, in any
case, shall be entitled to not less than two weeks vacation time per
year, and cumulative compensation for such vacation time shall be
paid each year to the Employee if such vacation is not taken in the
applicable year or if not carried forward to the next calendar year
in accordance with this Section 15. Employee shall be entitled to
carry over one (1) week of unused vacation to the next succeeding
calendar year.
(b) Employee shall be paid the pro rata portion of his regular Base
Salary and provided all other benefits as specified in Section 9
during any vacation period taken. Any payments made to Employee in
respect of vacation not taken or rolled over to the next calendar
year shall be paid to Employee in the last pay period of the
calendar year in which such vacation was not taken. The maximum
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compensation payable to Employee in any calendar year for unused
vacation shall be two weeks of unused vacation in such calendar year
plus one week of unused vacation, if any, that was rolled over as
unused vacation from the previous calendar year."
3. Section 16 (OTHER BENEFITS). Section 16 of the Employment Agreement
is hereby amended to eliminate the $10,000 fee for Employee's service on the
Board of Directors, such fees having terminated effective June 1, 1999. Employee
shall serve on the Board of Directors without additional compensation, except
for reimbursement of expenses incurred in attending meetings of the Board of
Directors and its committees. However, nothing in this Section 16, as amended,
is intended to prevent Employee's participation in any stock option plan as an
employee or as a director of Employer.
4. All other provisions of the Employment Agreement not herein amended
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereby have executed this Amendment to
Employment Agreement as of September 30, 1999 to be effective November 8, 1999.
EMPLOYEE: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
----------------------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
EMPLOYER: MIRACOM CORPORATION
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Co-Chief Executive Officer,
President
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