THIS AGREEMENT made as of the _____ day of _____________, 2004 and effective as of the _______ day of ______________, 2004.
THIS
AGREEMENT made as of the _____ day of _____________, 2004 and effective as of
the _______ day of ______________, 2004.
BETWEEN:
Zi
CORPORATION OF
AMERICA, INC. a body
corporate, incorporated under the laws of the State of Nevada (hereinafter
called the “Corporation”)
▇▇▇▇
▇▇▇▇▇▇, an
individual residing in the city of Plano, in the State of Texas (hereinafter
called “Employee”);
WHEREAS:
| A. |
the
Corporation is desirous of engaging the management services and expertise
of |
the
Employee upon the terms, conditions and for the considerations as hereinafter
set forth; and
| B. |
the
parties desire to enter into this Agreement to set forth their respective
rights |
and
obligations.
NOW
THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the premises, the mutual covenants and agreements herein
contained and other good and valuable consideration, the parties hereto mutually
covenant and agree as set forth herein.
ARTICLE
1.
CONTRACT
FOR SERVICES
1.01 Subject
to the earlier termination of this Agreement as hereinafter provided, the
Corporation hereby agrees to the services of the Employee on a full-time basis
to provide services to the Corporation and its affiliates in accordance with the
terms and provisions hereof.
1.02 Except as
hereinafter provided, the Employee shall be responsible for and shall have such
authority as is ordinarily consistent with the position of Senior Vice
President, Global Sales and Marketing, with full power and authority to
supervise and manage the business and affairs of the Corporation and such other
matters as the President & Chief Executive Officer may authorize from time
to time except such matters and duties as by law must be transacted or performed
by the board of directors and/or the shareholders of the Corporation. All such
authority of the Employee shall be subject to the power, direction and control
of the board of directors of the Corporation.
1.03
Without
limiting the generality of section 1.02 hereof, the Employee’s services
hereunder shall be provided on the basis of the following terms and
conditions:
|
(a) |
the
Employee’s title shall be Senior Vice President, Global Sales and
Marketing reporting to the President & Chief Executive
Officer. |
|
(b) |
the
Employee shall faithfully, honestly and diligently serve the Corporation
and cooperate with the Corporation and utilize maximum professional skill
and care to ensure that all services rendered hereunder are to the
satisfaction of the Corporation, acting reasonably, and shall provide any
other services not specifically mentioned herein, but which by reason of
his capability he knows or ought to know to be necessary to ensure that
the best interests of the Corporation are
maintained; |
|
(c) |
the
Employee shall assume, obey, implement and execute such duties, directions
responsibilities, procedures, policies and lawful orders as may be
determined or given by the Chief Executive Officer of the
Corporation; |
|
(d) |
the
Employee shall perform such duties and may exercise such powers as may
from time to time be assigned to or vested in him by the by-laws of the
Corporation; and |
|
(e) |
the
Employee will, when it is deemed by the Corporation to be beneficial, join
in or participate with organizations, clubs, associations or groups that
may provide good business contacts and learning facilities for the benefit
of the Corporation provided, however, that the Corporation shall reimburse
the Employee for all reasonable expenses incurred in connection
therewith. |
1.04 Subject
to the terms of the Confidentiality and Non-Competition Agreement appended
hereto as Schedule A the Employee agrees to devote his full time and attention
and use his best efforts to further the business and interests of the
Corporation and Affiliates during the period of this Agreement to the exclusion
of all other employment, business opportunities, consulting, investment or
contracting.
1.05 It is
acknowledged and agreed between the parties hereto that the services to be
provided by the Employee hereunder are of such a nature that regular business
hours may be impossible and that the Employee be required to perform services in
excess of eight hours per day or five days per week. It is also anticipated that
there will be certain evenings, Sundays and holidays during which the Employee
may be required to provide services and that the services to be provided by the
Employee are, inter
alia, of a
supervisory nature. The Employee therefore agrees that the consideration herein
set forth shall be in full and complete satisfaction for his work and services
to be provided hereunder, no matter when and how performed and the Employee
releases the Corporation from any additional pay or compensation, whatsoever
which he might have by reason of any existing or future legislation or
otherwise.
1.06 The
services to be carried out and performed by the Employee shall be carried out
and performed in the city of Plano, in the State of Texas or such other places
as may be mutually agreed between the Employee and the Corporation. In view of
the fact that the Corporation is the U.S. affiliate of the parent, Zi
Corporation, an Alberta company, Employee shall attend in the corporate head
office, currently located in Calgary, Alberta, from time to time as required for
the purposes of attending internal meetings. Employee shall be required to
comply with all applicable immigration requirements and Corporation shall
provide reasonable assistance as necessary.
1.07 The
Corporation acknowledges that it has reviewed the qualifications and experience
of the Employee herein and formed the opinion that the Employee is capable of
carrying out the duties as set forth herein.
ARTICLE
2.
TERM
OF CONTRACT
2.01 The term
of this Agreement shall commence effective as of May 31, 2004 and shall continue
to and including May 31, 2006 unless sooner terminated pursuant to Article 9
herein.
ARTICLE
3.
COMPENSATION
3.01 In
consideration of the services to be provided by the Employee to the Corporation
pursuant to Article 1 hereof, but subject to regulatory approval, the
Corporation shall pay to the Employee an amount equal to ONE HUNDRED AND EIGHTY
THOUSAND (US$180,000.00) dollars per annum (the “Annual Cash Remuneration”),
payable in bi-monthly instalments on the 15th and last
working day of each calendar month together with such increments as the board of
directors of the Corporation, in their sole discretion, may from time to time
determine.
3.02 The
Employee shall, subject to the Corporation obtaining necessary regulatory
approval, be granted five (5) year term stock options of the Corporation as
follows:
| a) |
An
option to purchase one hundred thousand (100,000) shares in the
Corporation to be granted as of May 31, 2004 (the effective date of
Employment), of which one third shall vest after six months of employment,
one third shall vest after twelve months of employment and one third shall
vest after twenty four months of employment;
|
3.03 The
Employee shall be reimbursed for all reasonable expenses incurred by him in or
about the execution of his services hereunder, including living expenses while
absent from his city of residence, travel and meeting/entertainment expenses.
All such expenses shall be verified by statements, receipts or other reasonable
evidence satisfactory to the Corporation.
3.04 The
Employee shall be entitled to participate in all medical, dental and other
health care, life insurance, group accident, long term disability benefits, as
well as savings, profit sharing, share option, share purchase and any other
benefit plans of whatsoever nature which the Corporation may provide from time
to time.
3.05 The
Employee may be granted a bonus based on a target of $50,000, as shall be
determined in the sole discretion of the board of directors, which can be earned
based upon performance goals set by the board of directors, payable in cash,
Restricted Share Units or options mutually agreed to.
3.06 The
Corporation shall be entitled to withhold and remit from such amounts payable
hereunder as is required by law from time to time.
ARTICLE
4.
REVIEW
OF COMPENSATION
4.01 The
remuneration payable pursuant to section 3.01 hereof may be reviewed annually by
the board of directors of the Corporation on or before the anniversary date
hereof, at which time the board of directors shall consider such matters as it
may consider relevant and shall determine, in its absolute discretion, whether
to increase the annual remuneration payable by the Corporation to the Employee
hereunder, provided always however, that the remuneration payable to the
Employee pursuant to Article 3 hereof shall not, as a result of such review, be
reduced.
ARTICLE
5.
INCAPACITY
5.01 The
Employee shall be entitled to reasonable time from his services, without loss of
compensation, due to sickness or illness or other incapacity.
5.02 In the
event the Employee is insured either personally or through the Corporation or
through a group plan provided by the Corporation for loss of income as a result
of disability and the Employee receives compensation or disability income
pursuant thereto, then the amount of remuneration which the Employee is
otherwise entitled to receive hereunder during the period of illness or
incapacity shall be reduced by the amount of compensation or disability income
paid by such insurer to the Employee and the Employee covenants and agrees that
he shall immediately advise the Corporation from time to time of the receipt of
any such disability income paid by such insurer to the Employee.
ARTICLE
6.
CONFIDENTIALITY
AND NON-COMPETITION
6.01 The
Employee covenants and agrees to enter into a Confidentiality and
Non-Competition Agreement substantially in the form appended hereto as Schedule
A.
ARTICLE
7.
VACATION
7.01 During
the term hereof, the Employee shall be entitled to three (3) weeks paid vacation
in each calendar year hereof or such other period as shall be determined by the
board of directors with no more than two weeks of vacation being taken at one
time.
ARTICLE
8.
NON-ASSIGNABILITY
8.01 This
Agreement and all other rights, benefits, and privileges herein conferred are
strictly applicable to the Employee, and accordingly may not be assigned by the
Employee.
ARTICLE
9.
TERMINATION
9.01 This
Agreement shall be terminated prior to the end of the term specified in section
2.01 hereof upon the occurrence of any one of the following events:
|
(a) |
the
death of the Employee, at which time the Corporation shall have no further
obligation to the Employee under this
Agreement; |
|
(b) |
90
days written notice by the Employee of his intention to terminate this
Agreement, at which time the Corporation shall have no further obligation
to the Employee under this Agreement. |
|
(c) |
incapacity
due to illness, disability or injury to the Employee that renders the
Employee unable to perform his duties for a period of longer than six
consecutive months and, as of such date of termination, the Corporation
shall have no further obligation to the Employee under this
Agreement; |
| (d) | termination of this Agreement without notice by the Corporation for cause, and as of such date of termination, the Corporation shall have no further obligation to the Employee under this Agreement (“cause” shall mean any of the following and without limiting its meaning at common law, breach by the Employee of any of the covenants or terms of this Agreement and Schedule A hereto; the Employee’s failure to perform adequately his employment duties; violation by the Employee of any Corporation policy that may be issued from time to time, including but not limited to policies concerning harassment and other workplace conduct; the criminal conviction of the Employee, a breach by the Employee of any provisions of securities legislation or regulations of stock exchanges on which the Corporation’s shares are listed and which have application to the Corporation); |
| (e) |
the
Corporation may terminate this Agreement for reasons other than those
specified in Article 9.01(d) herein, including a change of control as
defined in paragraph 9.02, by providing written notice of termination to
the Employee, in which event the Corporation shall forthwith, and in any
event within ten (10) days of providing the written notice, pay to the
Employee the following Termination Payment (less any statutory deductions
required by law): |
(i) if
written notice is provided during the first eighteen months of this Agreement,
an amount equivalent to three (3) months base salary; or
(ii) if
written notice is provided after the first eighteen months of this Agreement, an
amount equivalent to six (6) months base salary.
The
Termination Payment payable under this Article 9.01 (e) shall not be reduced in
any respect in the event that the Employee shall secure or shall not reasonably
pursue alternative employment or consulting work for other remuneration
following the termination of the Employee’s employment.
9.02 If as a
result of a merger, takeover, amalgamation, sale of all or substantially all of
the assets, there is a change of control of the Corporation then the Employee
shall be given notice of such event or events and shall within 30 days after
receipt of such notice, advise the Corporation in writing as to one of the
following:
|
(a) |
the
Employee may advise the Corporation in writing to the effect that he shall
continue to remain in the services of the Corporation and the terms of
this agreement shall remain in full force and effect;
or |
| (b) |
the
Employee shall advise the Corporation that he desires to terminate this
agreement, in accordance with the provisions of paragraph 9.01(b)
hereof. |
9.03 If as a result of a merger, takeover, amalgamation, sale of all or substantially all of the assets, there is a change of control of the Corporation, all unvested share options shall become fully vested.
ARTICLE
10.
NOTICES
10.01 All
notice required or allowed to be given under this agreement shall be made either
personally or by mailing same by prepaid registered post, addressed as
hereinafter set forth or to such other address as may be designated from time to
time by such party in writing, and any notice mailed as aforesaid shall be
deemed to have been received by the addressees thereof on the fifth business day
following the day of mailing:
| Zi CORPORATION OF AMERICA, INC. | ▇▇▇▇ ▇▇▇▇▇▇ | ||
| ▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇., ▇▇▇▇▇ ▇▇▇ | ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ | ||
| ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇ | ▇▇▇▇▇, ▇▇ ▇▇▇▇▇ |
Any party
may from time to time change its address for service hereunder by written notice
to the other parties. Any notice may be served by hand delivery or by mailing
same by prepaid, registered post, in a properly addressed envelope, addressed to
the party to whom the notice is to be given at its address for service
hereunder.
ARTICLE
11.
SEVERABILITY
11.01 Each
provision of this Agreement is declared to constitute a separate and distinct
covenant and to be severable from all other such separate and distinct
covenants. Without limiting the foregoing, each provision contained in Schedule
A hereof are declared to constitute a separate and distinct covenant in respect
of each capacity and each activity specified in Schedule A, and to be severable
from all other such separate and distinct covenants. If any of the capacities,
activities, or periods specified in Schedule A, are considered by a court of
competent jurisdiction as being unreasonable, the parties hereto agree that the
said court will have authority to limit such capacities, activities, periods or
areas to such capacities, activities, periods or areas as the court deems proper
in the circumstances.
11.02 If any
covenant or provision herein is determined to be void or unenforceable in whole
or in part, it will not be deemed to affect or impair the enforceability or
validity of any other covenant or provision of this agreement or any part
thereof.
ARTICLE
12.
RELIEF
12.01 The
parties to this Agreement recognize that a breach by the Employee of any of the
covenants herein contained would result in damages to the Corporation and that
the Corporation could not adequately be compensated for such damages by monetary
award. Accordingly, the Employee agrees that in the event of any such breach, in
addition to all other remedies available to the Corporation at law or in equity,
the Corporation will be entitled as a matter of right to apply to a court of
competent equitable jurisdiction for relief by way of restraining order,
injunction decree or otherwise, as may be appropriate to ensure compliance with
the provisions of this agreement.
ARTICLE
13.
WAIVER
13.01 The
parties agree that all restrictions in this agreement are necessary and
fundamental to the protection of the Corporation and are reasonable and valid,
and all defences to the strict enforcement thereof by the Corporation are hereby
waived by the Employee.
ARTICLE
14.
GENERAL
14.01 This
Agreement constitutes the entire understanding between the parties hereto
relating to the subject matter hereof, superseding all negotiations, prior
discussions, preliminary agreements and agreements relating to the subject
matter hereof made prior to the date hereof.
14.02 The
provisions of this agreement will enure to the benefit of and be binding upon
the heirs, executors, administrators and legal personal representatives of the
Employee and the successors and assigns of the Corporation
respectively.
14.03 Wherever
the singular or masculine or neuter is used in this agreement, the same shall be
construed as meaning the plural or feminine or body politic or corporate and
vice versa where the context of the parties hereto so require.
14.04 Time is
of the essence hereof.
14.05 This
Agreement shall be construed and interpreted in accordance with the laws of the
Province of Alberta and each of the parties hereto hereby irrevocably attorns to
the jurisdiction of the Courts of such Province.
14.06 The
Employee acknowledges that he has had the opportunity to have his legal counsel
review and participate in settling the terms of this Agreement.
ARTICLE
15.
SPECIAL
15.01 The
Employee shall be entitled to participate in the Corporation’s benefits plan
immediately.
IN
WITNESS WHEREOF the parties hereto have executed this Agreement effective
as of the date and year first above written.
| Zi CORPORATION OF AMERICA, INC. | |||
| |
|
| |
| per: | |||
|
▇▇▇▇ ▇▇▇▇▇▇▇ | |||
| President & Chief Executive Officer | |||
| SIGNED, SEALED AND DELIVERED in | |||
| the presence of: | |||
| Witness to the signature of the Employee | ▇▇▇▇ ▇▇▇▇▇▇ | ||
AFFIDAVIT
OF EXECUTION
UNITED
STATES ) I,
_________________ of the City of
STATE
OF COLORADO ) _______________,
in the Province of
MAKE OATH
AND SAY:
1. I WAS
PERSONALLY present and did see ▇▇▇▇ ▇▇▇▇▇▇, is the Employee named in the within
instrument, who is personally known to me to be the person named therein, duly
sign and execute the same for the purposes named therein.
2. THAT THE
SAME was executed at the City of _______________, in the State/Province of
_______________, and that
I am the subscribing witness thereto.
3. THAT I
KNOW the said Employee, and he/she is, in my belief, of the full age of eighteen
years.
|
SWORN
BEFORE ME at _______________________, |
) |
|||
|
in
the Province of _______________, this |
) |
|||
|
this
_____ day of ______________, 2003. |
) |
|||
|
) |
||||
|
) |
||||
|
) |
||||
|
_______________________________________ |
_______________________________________ |
|||
|
A
Commissioner for Oaths / Notary Public in and |
||||
|
For
the Province of ____________________ |
Print
Name of Witness Below: |
[Note: If outside of Alberta, Notary Public
required
and Notary stamp required]