EXHIBIT 10.15
EMPLOYMENT AGREEMENT
THIS AGREEMENT made to have effect the 1st day of February, 1999.
BETWEEN:
MDSI MOBILE DATA SOLUTIONS INC., a body corporate duly
incorporated under the laws of Canada and having its offices
at ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇ ▇▇▇
(the "Company")
AND:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇, a resident of British Columbia,
having an address at ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇.▇.
▇▇▇ ▇▇▇
(the "Executive")
WHEREAS the Company wishes to employ the Executive and the Executive is
willing to accept such employment upon the terms and conditions set forth in
this Agreement;
NOW THEREFORE in consideration of the premises and the mutual covenants and
agreements herein set forth the parties hereto mutually covenant and agree as
follows:
1. EMPLOYMENT
1.1 The Company hereby employs the Executive to be the President and Chief
Operating Officer of the Company and the Executive hereby accepts such
employment. The Executive shall report to the Chief Executive Officer of the
Company and shall perform all duties and have all authority incident to the
position of President and Chief Operating Officer of the Company and such
additional duties as he may from time to time be reasonably required to perform,
and such additional authority as he may from time to time be given, by the Chief
Executive Officer.
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1.2 Without limiting or restricting in any manner the generality of the
foregoing, the work and services to be performed by the Executive will include
the following responsibilities and authority:
(i) Assisting in developing and achieving the vision of the Company,
its corporate strategies and tactics;
(ii) Assisting the Chief Executive Officer in managing and shaping the
Company's management team;
(iii) Assuming responsibility for implementing and achieving the
Company's vision, strategies, goals and programs; and
(iv) Assuming responsibility for the operations of the Company
including its operating performance on a quarter by quarter
basis.
1.3 The Executive shall perform his duties out of the Richmond office of the
Company or out of such other office in the lower mainland area of British
Columbia which the Company shall establish and designate as its Vancouver head
office. The Executive's duties will involve extensive domestic and international
travel.
2. EXCLUSIVE SERVICE
Except as expressly provided the Executive shall, during his employment
with the Company, devote his entire attention on a full time basis to the
business of the Company. Provided he obtains the prior written approval of the
Chief Executive Officer the Executive may, during his employment with the
Company undertake work as a director or consultant to any other
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company, firm or individual that is not in competition with the Company. At this
time the Company acknowledges the Executive has obligations as a Director of
Realm Group Inc. and St George's School.
3. SALARY AND BONUSES
3.1 The Company shall pay the Executive an annual base salary ("Base Salary")
of Canadian $240,000 gross payable bi-monthly which shall be increased as
follows:
(i) On January 1, 2000 by an amount of 10%; and
(ii) On January 1 of each year of employment commencing 2001 by a cost
of living increase corresponding with the rate of inflation for
the immediately preceding year identified in the Consumer Price
Index for Vancouver published by Statistics Canada which shall in
no case be less than 2.5% per year;
(iii) Notwithstanding (i) or (ii) above the Company will undertake a
review of the Executive's compensation every three years or
sooner if deemed necessary by the CEO or the compensation
committee of the Board of Directors.
3.2 The Company shall pay the Executive the following incentive bonuses:
(i) a primary bonus (the "Target Incentive") of up to 40% of Base
Salary to be paid upon the Company achieving quarterly revenue,
earnings per share and corporate targets established by the Board
of Directors and communicated to the external market. This bonus
shall be earned and paid in accordance with the details of the
Target Incentive Plan attached as Schedule 1 to this Agreement;
and
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(ii) a secondary bonus (the "Performance Incentive") of up to 40% of
Base Salary to be paid upon the Company achieving internal
performance targets established by the Board of Directors. This
bonus shall be earned and paid in accordance with the details of
the Performance Incentive Plan attached as Schedule 2 to this
Agreement.
3.3 All payment of salary or bonus shall be subject to deduction of all
applicable Federal and Provincial income tax, unemployment insurance, Canada
Pension deductions and other deductions required at law or made pursuant to this
Agreement.
4. PERQUISITES AND EXPENSES
4.1 The Company shall provide the Executive with an annual flexible pre-tax
perquisite of Canadian $5,000. Any tax which may be applicable to this payment
shall be paid by the Executive.
4.2 The Company shall provide to the Executive the following expenses,
equipment and allowances:
(i) reimbursement for all reasonable and necessary expenses incurred
by the Executive in the conduct of the business of the Company in
accordance with travel and expense policies established by the
Company from time to time;
(ii) appropriate hardware/software, including cell phone, pager, and a
portable computer selected by the Company to permit the Executive
to operate effectively while away from the office or at home and
associated costs; and
(iii) an allowance of Canadian $15,000 per year to cover the leasing
and operating
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costs of an automobile. This allowance will be indexed to the
rate of inflation indicated in the Consumer Price Index for
Canada as published by Statistics Canada and adjusted accordingly
on the first day of January in each year of employment commencing
on January 1, 2000.
5. STOCK OPTIONS
5.1 The Executive shall be entitled to participate in the Employee Stock
Purchase Plan as established by the Company and amended from time to time. A
copy of that Plan has been supplied to the Executive who acknowledges its
receipt.
5.2 In addition, the Executive shall be entitled to the following Stock
Options:
(i) an option to purchase 100,000 Company shares at a price of
Canadian $20 per share. The option to purchase the first 20,000
of these shares shall vest upon the first day of the Executive's
employment and the option to purchase the remaining 80,000 of
these shares shall vest cumulatively in equal monthly amounts on
the first day of each of the subsequent 48 months; and
(ii) a further option to purchase 12,500 Company shares per year in
each of the five years from and including 2001 to 2005. The
option to purchase shall vest on the first day of January in each
of the five years and may be exercised at fair market value which
shall be the closing price of Company shares on the Toronto Stock
Exchange ("TSE") on the last trading day prior to the date of
grant.
5.3 Stock options which have vested may be exercised at any time up to five
years from the date of grant. Subject to the provisions of Sections 12, 13 and
15 below, those stock options which have not vested by the date of termination
of the Executive's employment with the
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Company shall expire automatically as of that date. Upon termination of his
employment by resignation (except a resignation under section 13 or 15), the
Executive shall have a period of thirty (30) days in which to exercise vested
share purchase options, failing which those options shall expire automatically.
5.4 The stock options granted to the Executive in Section 5.2 are made in
accordance with the Company's Stock Option Plan as amended from time to time by
the Company. A copy of this plan have been supplied to the Executive who
acknowledges its receipt.
6. VACATION
6.1 The Executive shall be entitled to vacation as follows:
1999 - four weeks vacation
2000 - five weeks vacation
each year thereafter - six weeks vacation.
7. BENEFITS
7.1 The Executive shall receive those benefits (including medical, dental,
extended health insurance, short and long term disability, life insurance and
family assistance) which are provided to Canadian based employees in the Company
Employee Benefit Program in effect upon the Executive's employment date as that
Program may be modified from time to time. A copy of the Program has been
supplied to the Executive who acknowledges its receipt. In addition to this plan
the Company will provide the Executive with supplemental life insurance to bring
the Executive's total life insurance coverage to $1,000,000. The Executive shall
be entitled to participate in any separate benefit package which the Company may
subsequently develop for senior management.
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8. SICK LEAVE
8.1 If the Executive shall, at any time, by reason of illness or mental or
physical disability, be incapacitated from carrying out the terms of this
Agreement, he shall furnish the Directors of the Company with medical evidence
to prove such incapacity and the cause thereof, and shall receive his full
salary for a period of 180 days or until long term disability begins whichever
period is shorter.
9. CONFIDENTIAL INFORMATION
9.1 The Executive acknowledges that as President and Chief Operating Officer of
the Company, he holds a fiduciary position and owes to the Company a duty of
utmost loyalty and good faith. The Executive agrees to serve the Company well
and faithfully and to the best of his ability, and to use his best efforts to
promote its interests.
9.2 The Executive acknowledges that in the exercise of his duties with the
Company he will develop and receive information which is proprietary or
confidential to the Company, which information may include but shall not be
limited to: intellectual property; know-how; trade secrets and processes;
product specifications; methods of doing business; information with respect to
the Company's organization; information with respect to the Company's financial
affairs and business plans; information with respect to the Company's pricing
policies; sales and marketing plans; information with respect to the identity
and special needs of the Company's customers (the "Confidential Information").
9.3 The Executive agrees that he shall not disclose the Confidential
Information (either during the continuance of his employment hereunder or any
time thereafter) to any persons other than the Directors of the Company, or as
required in the normal course of business and shall not
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use the Confidential Information (either during the continuance of his
employment hereunder or any time thereafter) for his own purposes, or any
purposes other than those of the Company. The Executive further agrees in
consideration for his continued employment by the Company to execute such
further and other agreements concerning the secrecy of the affairs of the
Company or any companies with which the Company is affiliated or associated as
the Directors of the Company shall reasonably request.
9.4 Information shall not be considered as confidential if at the time of
disclosure by the Executive it is generally known to the public or after
disclosure by the Executive it becomes known to the public through no violation
of this Agreement or is disclosed to the Executive by a third party that it is
not under an obligation to maintain the confidentiality of the information.
10. NON COMPETITION
10.1 The Executive agrees that the Company has a legitimate interest in ensuring
that Confidential Information will neither be used by the Company's competition
nor by the Executive for a purpose other than the execution of his functions as
an employee of the Company. Therefore, the Company and the Executive
specifically agree:
(i) that during the term of his employment, under no circumstances
will the Executive compete with the Company either on his own
behalf or on behalf of or as an employee of a third party;
(ii) for a period of twelve (12) months following the termination of
his employment with the Company the Executive shall not compete
with the Company either on his own account or on behalf of or as
an employee of any third party; and
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(iii) for a period of twelve (12) months following the date of
termination of his employment with the Company the Executive
shall not approach any other employee of the Company for the
purpose of recruiting that employee to his own service or
offering or causing to be offered to such other employee a new
position or employment with any other person or company
10.2 The Executive acknowledges and agrees that there can be no geographic limit
to his covenant not to compete due to the nature and extent of the business of
the Company, the market for the Company products and the technologies with which
the Company is involved.
10.3 The parties to this agreement recognize that a breach by the Executive of
any of the covenants contained in Sections 9 and 10 of this Agreement would
cause irreparable harm to the Company which could not be adequately compensated
for by monetary damages. Accordingly the Executive agrees that in the event of a
breach by him of any of the covenants contained in Sections 9 and 10 of this
Agreement, he shall and hereby does consent to an injunction being issued
against him restraining him from any further breach of the said covenants. The
provisions of this section shall not be construed so as to affect or impair any
other remedies which the Company may have in the event of such breach, including
but not limited to an action for damages.
11. OWNERSHIP AND USE OF WORK PRODUCTS
11.1 The Executive agrees that any work products produced by the Executive in
the course of his employment with the Company whether developed solely by the
Executive or jointly with any other party (the "Work Product") shall be the sole
and exclusive property of the Company.
11.2 The Company acknowledges that general knowledge and experience including
general
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techniques, algorithms, methods and formulae not developed for the Company's
specific application or work gained by the Executive prior to or in the course
of his association with the Company, may be used by the Executive at any time
prior to, during or subsequent to his association with the Company, unless a
specific agreement to the contrary is entered into by the Executive and the
Company, as long as the Executive is not in breach of his covenants of
non-competition contained herein.
11.3 This Agreement does not apply to any general techniques, formulae,
algorithm or method for which no equipment, supplies, facility or other
resources or trade secret information of the Company was used and which was
developed entirely on the Executive's own time unless such techniques, formulae,
algorithms, or method related directly to the business of the Company or the
Company's actual demonstrated anticipated research or development.
11.4 At any and all times, either during or after termination of the Executive's
employment with the Company, the Executive will promptly, on the request of the
Company, perform all such acts and execute and deliver all such documents that
may be necessary to vest in the Company the entire right, title and interest in
and to any such Work Product. Should any services be rendered after termination
of his association with the Company a reasonable compensation will be paid to
the Executive upon a per diem basis in addition to reasonable travelling and
accommodation expenses incurred as a result of rendering such services.
11.5 The Employee hereby assigns to the Company any rights the Employee may have
or acquire in the Work Product and waives all claims whatsoever with respect to
the Work Product including any moral rights which he/she may have or acquire in
the Work Product or to its use, including the right to restrain or claim damages
for any distortion, mutilation or other modification of the Work Product or any
part thereof whatsoever, or to restrain use or reproduction of the Work Product
in any context, or in connection with any product or service.
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12. TERMINATION OF EMPLOYMENT
12.1 The Executive's employment may be terminated at any time by the Company
without previous notice and without payment in lieu of notice for cause which,
for the purposes of this agreement shall include but not be limited to:
(i) dishonesty in the course of the discharge of his duties as an
employee;
(ii) gross negligence or repetitive negligence committed without
regard to corrective direction in the course of the discharge of
his duties as an employee;
(iii) conviction of any criminal offence other than an offence which,
in the reasonable opinion of the Company does not affect the
reputation of the Company or the Executive's position as a
representative of the Company;
(iv) becoming bankrupt or insolvent;
(v) any incapacity, other than an illness or disability, which
renders the Executive incapable of continuing his employment for
a period of 3 months or longer.
12.2 The Executive shall be entitled to terminate his employment with the
Company, at will, at any time by giving notice in writing to the Company of not
less than eight weeks unless otherwise agreed to in writing by the parties.
12.3 The Company may terminate the employment of the Executive at will and
without cause at any time upon payment to the Executive of all salary and
bonuses owing up to the date of termination and a severance package consisting
of an amount equal to the sum of two times the current base salary plus two
times the current year target incentive amount.
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12.4 In the event that the Company terminates the employment of the Executive
under Section 12.3 above, all stock options to which the Executive is entitled
and which would have vested during the period of twenty-four (24) months
following the date of termination shall vest immediately as of the date of
termination and the Executive shall have a period equal to the earlier of
twenty-four (24) months from that date of termination or the original expiry
date of the five (5) year vesting period from the date of the grant, to exercise
those options.
12.5 The Executive will not be required to mitigate the amount of any payment or
benefit provided for under this Section 12 or any damages resulting from a
failure of the Company to make any such payment or to provide such benefit, by
seeking other employment, or otherwise, nor shall the amount of any payment or
benefit provided for under this Section 12 be reduced by any compensation earned
by the Executive from employment or self employment.
13. Board of Director's Seat
On February 1, 2000 the Executive, given no issues have arisen during the
Executive's first year of employment, will, subject to shareholder approval at
the subsequent Annual General Meeting, be appointed to the Board of Director's
of MDSI Mobile Data Solutions Inc.
14. CHANGE OF CONTROL OF THE COMPANY
14.1 In this section the term "Change of Control" shall mean:
(a) the sale of greater than 50% of the issued and outstanding common
shares in the capital of the Company pursuant to a "takeover bid" (as
defined in the British Columbia Securities Act);
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(b) the disclosure that any person (a "Control Person") directly or
indirectly, beneficially or legally owns, or exercises control or
direction over, greater than 50% of the issued and outstanding shares
in the capital of the Company, in any ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ report,
information circular, prospectus, offering memorandum, material change
report or other disclosure document of the Company or any such Control
Person, filed or required to be filed with the British Columbia
Securities Commission, the TSE or any other securities regulatory
authority or stock exchange;
(c) the sale or disposition of all or substantially all of the assets of
the Company to a non-affiliated party;
(d) the merger, amalgamation or consolidation of the Company with or into
any other non-affiliated corporation; or
(e) the appointment of a liquidator, receiver, receiver-manager, or
trustee in bankruptcy of the Company, or the making of any assignment
or proposal to or for the benefit of the creditors of the Company.
14.2 In the event that the Company undergoes a Change of Control the Executive
shall have the right at any time within 30 days from the date on which the
Change of Control occurred to resign from his employment with the Company in
accordance with Section 12.2 above, in which case he shall be entitled to
receive the severance package described in Section 12.3 above.
14.3 In the event that the Executive resigns from his employment under Section
14.2 above, all stock options to which the Executive is entitled and which would
have vested during the period of twenty-four (24) months following the date of
resignation shall vest immediately as of the date of
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resignation and the Executive shall have a period equal to the earlier of
twenty-four (24) months from that date of resignation or the original expiry
date of the five (5) year vesting period from the date of the grant, to exercise
those options.
14.4 The Executive will not be required to mitigate the amount of any payment or
benefit provided for under this Section 14 or any damages resulting from a
failure of the Company to make any such payment or to provide such benefit, by
seeking other employment, or otherwise, nor shall the amount of any payment or
benefit provided for under this Section 14 be reduced by any compensation earned
by the Executive from employment or self employment.
15. RESIGNATION AND INDEMNITY
15.1 Upon termination of this Agreement, the Executive will tender to the
Company, and their associated companies, his resignation as an officer and if
applicable, his resignation as a director.
15.2 Subject to the Canada Business Corporations Act, as amended from time to
time (the "Act"), the Company hereby indemnifies the Executive, his heirs,
executors administrators and personal representatives (collectively, the
"Indemnitees") and save the Indemnitees harmless against all costs, charges and
expenses actually and reasonably incurred by the Indemnities in law, in equity
or under any statute or regulation, in connection with any civil, criminal, or
administrative claim, action, proceeding or investigation to which the
Indemnitees are made a party or in which they are otherwise involved as a
witness or other participant by reason of the Executive being or having been a
director or officer of the Company or its affiliated or associated companies,
including any action brought by the Company or companies, if:
(i) the Executive acted honestly and in good faith with a view to the
best interests of the Company or companies; and
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(ii) in the case of a criminal or administrative claim, action,
proceeding or investigation, the Executive had reasonable grounds
for believing that his conduct was lawful.
15.3 Without limiting the generality of the foregoing of Section 15.2 the costs,
charges and expenses against which the Company will indemnify the Indemnitees
include:
(i) any and all fees, costs and expenses actually and reasonably
incurred by the Indemnitees in investigating, preparing for,
defending against, providing evidence in, producing documents or
taking any other action in connection with any commenced or
threatened action, proceeding or investigation, including
reasonable legal fees and disbursements, travel, and lodging
costs;
(ii) any amounts reasonably paid in settlement of any action,
proceeding or investigation;
(iii) any amounts paid to satisfy a judgement or penalty, including
interest and costs; and
(iv) all costs charges and expenses reasonably incurred by the
Indemnitees in establishing their right to be indemnified
pursuant to this Agreement.
15.4 If the Indemnitees or any one of them are required to include in their
income, or in the income of the estate of the Executive, any payment made under
this Section 15 for the purpose of determining income tax payable by the
Indemnitees or any of them or the estate, the Company shall pay an amount by way
of indemnity that will fully indemnify the Indemnitees or estate for the amount
of all liabilities described in Section 15.2 and Section 15.3 and all income
taxes payable as a result of the receipt of the indemnity payment.
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15.5 Upon receipt of a written request by the Indemnitees for indemnification
under this Agreement (an "Indemnification Notice"), the Company will forthwith
apply to the Supreme Court of British Columbia for approval of the requested
indemnification, will diligently proceed to obtain such approval and will take
all other steps necessary to provide the requested indemnification as soon as
practicable following receipt of the Indemnification Notice.
15.6 Any failure by the Executive in his capacity as a director or officer of
the Company to comply with the provisions of the Act or the Memorandum, Articles
or Bylaws of the Company will not invalidate any indemnity to which he is
entitled under this Agreement.
16. RETURN OF PROPERTY
16.1 In the event of termination of this Agreement, the Company agrees to pay
the Executive all arrears of compensation, and all out of pocket expenses owing,
up to and including the effective date of termination, upon receipt from the
Executive of (and the Executive agrees to deliver to the Company);
(i) any property of the Company which may be in the possession or
control of the Executive; and
(ii) the repayment of any sums owed by the Executive to the Company.
17. SURVIVAL
17.1 Notwithstanding the termination of this Agreement for any reason whatsoever
the provisions of Sections 9, 10, 11 and 14 hereof and any other provisions of
this Agreement necessary to give efficacy thereto shall continue in full force
and effect following such termination.
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18. NOTICE
18.1 Any notice or other communication (each a "Communication") to be given in
connection with this Agreement shall be given in writing and may be given by
personal delivery, by registered mail or by telecopier, addressed as follows:
TO: MDSI Mobile Data Solutions Inc.
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇ ▇▇▇
Attn: Chief Executive Officer
Phone: ▇▇▇-▇▇▇-▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
AND TO: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇ ▇▇▇
Phone: ▇▇▇-▇▇▇-▇▇▇▇
or at such other address or telecopier number as shall have been designated by
Communication by either party to the other. Any Communication shall be
conclusively deemed to be received, if given by personal delivery, on the date
and at the time of actual delivery thereof and, if given by registered mail, on
the fifth day following the date of mailing, if given by telecopier, on the
business day following the transmittal thereof. If the party giving any
Communication knows or ought reasonably to know of any actual or threatened
interruptions of the mails, such Communication shall not be sent by mail but
shall be given by personal delivery or telecopier.
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19. ENTIRE AGREEMENT
19.1 Any other previous agreements, written or oral, between the parties hereto
relating to the employment of the Executive by the Company are hereby terminated
and cancelled and each of the parties hereto hereby releases and forever
discharges the other party hereto of and from all manner of actions, causes and
demands whatsoever under or in respect of any such agreement. This Agreement,
together with the Plans and Programmes which are by reference expressly
incorporated into it, constitutes and expresses the whole agreement of the
parties hereto with reference to the employment of the Executive by the Company,
and with reference to any of the matters or things herein provided for, or
herein before discussed or mentioned with reference to such employment; all
promises, representations, and understandings relative thereto being merged
herein.
20. AMENDMENTS AND WAIVERS
20.1 No amendment to this Agreement shall be valid or binding unless set forth
in writing and duly executed by both of the parties hereto. No waiver or any
breach of any by the party purporting to give the same and, unless otherwise
provided in the written and signed waiver, shall be limited to the specific
breach waived.
21. BENEFITS OF AGREEMENT
21.1 The provisions of this Agreement shall enure to the benefit of and be
binding upon the legal representatives of the Executive and the successors and
assigns of the Company respectively.
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22. SEVERABILITY
22.1 If any provision of this Agreement is deemed to be void or unenforceable,
in whole or in part, it shall not be deemed to affect or impair the validity or
any other provision hereby declared and agreed to be severable from each and
every other section, subsection or provision hereof and to constitute separate
and distinct covenants. The Executive hereby agrees that all restrictions herein
are reasonable and valid and all defences to the strict enforcement thereof by
the Company are hereby waived by the Executive.
23. GOVERNING LAW
23.1 This Agreement shall be governed by and construed in accordance with the
laws of the Province of British Columbia. The Company and the Executive hereby
irrevocably attorn to the jurisdiction of the courts of the Province of British
Columbia, exclusively.
24. COPY OF AGREEMENT
24.1 The Executive hereby acknowledges receipt of a copy of this Agreement duly
signed by the Company.
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IN WITNESS WHEREOF the parties have executed this Agreement as of the day and
year first above written:
SIGNED, SEALED AND DELIVERED )
by ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ )
in the presence of: )
)
---------------------------- )
Witness ) ---------------------------------
) ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
---------------------------- )
Address )
)
---------------------------- )
Occupation )
MDSI MOBILE DATA SOLUTIONS INC.
Per: ---------------------------------
Authorized Signatory
Schedule "A"
Job Description: President and Chief Operating Officer
Purpose:
To establish short-term and long-range objectives, plans and policies subject to
the approval of the CEO and/or the Board of Directors. To direct financial,
organizational, operational and business planning activities; monitor
performance to ensure objectives are met. Ensure that the strategic direction of
the Company is defined and executed. Represent the organization with its major
customers, the financial community, government and the public.
Duties and Responsibilities
Develop broad corporate goals and objectives and strategies in accordance with
corporate vision and mission as agreed to with the Board of Directors. Directs
and coordinates major organizational units so that their activities are carried
out in an integrated manner consistent with the overall corporate objective.
Determines broad policies in conjunction with executive team.
Establishes accountability and authority for subordinate executives and monitors
their performance in execution of business plans, financial results and
organizational objectives. Take corrective action as required.
Implements on a continuous basis an organizational structure and staffing plan
that meets the on-going operational needs of the company
Establishes in conjunction with executive team an organizational climate
conducive to maximizing employee potential and productivity and retention of key
personnel; ensures an infrastructure is in place that motivates, recognizes and
rewards employees in a manner consistent with individual and corporate results.
In conjunction with the CEO presents budgets to the Board of Directors for
approval, reviews financial results, and capital expenditures on a regular
basis, takes corrective action as necessary to ensure financial objectives
achieved.
Represents the organization in important external business relationships with
major clients, strategic partners, financial community, government and public to
ensure a positive organization profile.
In conjunction with the CEO identify opportunities for strategic partnering,
acquisition, mergers etc. Participate in negotiations on behalf of the
corporation in order to maximize profitability and future potential.
Constantly reassess corporate strategies and initiatives to ensure that
corporate profitability is achieved.
The above outlines essential responsibilities and activities and is not intended
to be an exhaustive list. Depending on organization requirements other duties
may be assigned.
Specialized Skills
Broad general knowledge of the high tech industry and an ongoing awareness of
technology development and advancements. Skills in general and strategic
business management, innovative and strategic planning, effective decision
making, leadership communications and employee/customer relations.
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SCHEDULE "1"
40 % of base salary based 80% on achievement of the company's EPS targets in
each quarter and 20% on personal performance determined annually.
The company's EPS targets in each quarter are either achieved or not with
achievement resulting in the payment of the entire (80% of 40%) incentive within
30 days of the company's quarterly results being announced. 50% of any missed
quarters incentive (i.e. 40% of 40%) can be recovered if the year's EPS target
is achieved. This would be paid along with any other incentive achieved for the
year.
Personal performance is actually 20% of the target 40% and 20% of the stretch
40% incentive or 16% of base salary. The performance rating will be based on a
1-10 rating scale where 1 = intolerable, 2 = less than tolerable, 3 = barely
tolerable, 4 = satisfactory -, 5 = satisfactory, 6 = satisfactory +, 7 =
exceeding, 8 = exceeding +, 9 = excelling, 10 = exceptional. A 5 rating would
therefore result in 8% of base salary as an incentive, 7.5 would 12%, and so on.
Personal results are based on a performance plan, which articulates a set of
personal objectives for the year.
SCHEDULE "2"
Schedule 2 - 40% of base salary based 80% on exceeding the target EPS for the
year and 20% on personal performance as described above.
The determination of % achievement of stretch incentive (0-32% of base) will be
in direct relationship to the % achievement of the EPS stretch target for the
year as set by the Board of Directors (e.g. 50% of difference between target and
stretch achieved = 50% of 32% or 16% of base salary).
Payment of annual incentives will be within 30 days of announcing the company's
annual results.