1 st AMENDED &
RESTATED EMPLOYMENT AGREEMENT
THIS AMENDMENT OF APRIL 16, 2008 ("AMENDMENT")
TO THAT CERTAIN EMPLOYMENT AGREEMENT, dated as of April 30, 2007, (the "Original
Agreement") by and Between Green Screen Interactive Software, LLC
(f/k/a Green Screen, LLC), a Delaware limited liability company
with its offices at 575 Broadway, New York, New York 10012 (the
"Company"), and Mark Seremet, an individual residing at 49 Indian
Hill Road, Pound Ridge, NY 10576 ("Executive").
WHEREAS, the parties entered into the Original
Agreement when the Company was a startup company;
WHEREAS, the Company is now in the early stages
of operations and has refined its organizational structure and
business plans all of which require the Original Agreement to be
amended and restated in its entirety on the terms set forth
below.
NOW, THEREFORE, in consideration of the premises
and mutual covenants contained herein and for other good and
valuable consideration, the parties agree as follows:
1. Term of Employment. Executive's employment under the Original
Agreement commenced on April 30, 2007 (the "Commencement Date") and
will currently expire on April 30, 2011 (the "Employment Term").
Subject to earlier termination pursuant to Section 7 hereof, the
Employment Term shall be automatically extended for additional
terms of successive one (1) year periods unless the Company or
Executive gives written notice to the other at least sixty (60)
days prior to the expiration of the then current Employment Term of
the termination of Executive's employment hereunder at the end of
such current Employment Term.
(a) Executive shall serve as the President of the
Company but acknowledges that organizational reorganization is
contemplated and that his role may be converted to that of a Vice
President of a discrete operational area and that any such change
shall not be considered a demotion or breach of this Agreement by
the Company.
(b) The Executive shall report to the Chief
Executive Officer of the Company. The Executive may be given such
further reasonably related supervisory duties, powers and
prerogatives as may be delegated to him from time to time by the
Chief Executive Officer.
(c) During the Employment Term, Executive shall
devote substantially all of his business time and efforts to the
performance of his duties hereunder; provided, however, that
Executive shall be allowed, to the extent that such activities do
not materially interfere with the performance of his duties and
responsibilities hereunder, to lecture, publish, manage his passive
personal investments, and to serve on corporate, civic, or
charitable boards or committees. Notwithstanding the foregoing,
Executive shall not serve on any corporate board of directors if
such service would be inconsistent with his fiduciary
responsibilities to the Company. The Company specifically approves
of Executive serving as a director of Qoop, Inc, Repliqa, LLC, and
Serklin, Inc.
3. Base Salary. During the Employment Term and after the date of
this Amendment, the Company shall pay Executive a base salary at
the annual rate of not less than $250,000. Base salary shall be
payable in each case in accordance with the usual payroll practices
of the Company. Executive's Base Salary shall be subject to annual
review by the Board in December of each year and may be increased
above the minimum from time to time upon recommendation of the
Compensation Committee. The base salary as determined as aforesaid
from time to time shall constitute "Base Salary" for purposes of
this Employment Agreement.
4. Bonus. Shall be $200,000 per annum, $100,000 based upon
the Company's achievement of its operating plan, and $100,000 based
upon other milestones to be determined by the Company's CEO. For
2008 targets are pre-set at aggregate raise of $25 million of
equity with a bonus of $75,000 and $100,000 for the Company
successfully achieving it operating plan as approved by its Board
of Directors. $25,000 has been earned by the Executive for Quarter
1, 2008 for successfully completing financing/operating
objectives.
5. Employee Benefits and Vacation.
(a) During the Employment Term, Executive shall be
entitled to participate in all pension, retirement, savings,
welfare and other employee benefit plans and arrangements and
fringe benefits and perquisites generally maintained by the Company
from time to time for the benefit of the senior executives of the
Company.
(b) During the Employment Term, the executive shall
receive an auto allowance of Six Hundred ($600) dollars per month.
To the extent permitted under applicable law, the Company shall not
treat as compensation to Executive fringes and perquisites provided
to Executive or the items under Section 6 below.
(c) During the Employment Term, Executive shall be
entitled to vacation each year in accordance with the Company's
policies in effect from time to time but not less than four weeks
paid vacation. Executive shall also be entitled to such periods of
sick leave as is customarily provided by the Company for its senior
executive employees.
6. Business Expenses. The Company shall reimburse Executive for the
travel, entertainment and other business expenses incurred by
Executive in the performance of his duties hereunder, in accordance
with the Company's policies as in effect from time to
time.
(a) The employment of Executive under this
Employment Agreement shall terminate upon the occurrence of any of
the following events:
(i) the death of Executive;
(ii) the termination of Executive's employment by
the Company due to Executive's Disability pursuant to Section 7(b)
hereof;
(iii) the termination of Executive's employment by
Executive for Good Reason pursuant to Section 7(c)
hereof;
(iv) the termination of Executive's employment by
the Company without Cause;
(v)
the termination of employment by
Executive without Good Reason upon not less than thirty (30) days
prior written notice;
(vi) the termination of employment by Executive,
with or without Good Reason during the two year period commencing
after the Change in Control as defined in Paragraph 11 below (such
period being referred to herein as the "Change in Control
Protection "Period");
(vii) the termination of Executive's employment by
the Company for Cause pursuant to Section 7(e);
(b) Disability. If Executive is unable to carry out his material
duties pursuant to this Employment Agreement for more than ninety
(90) days during any twelve (12) month period by reason of any
physical or mental impairment, or suffers any medically determined
physical or mental impairment that can be expected to result in
death or that can be expected to render the Executive incapable of
performing his duties to the Company for ninety (90) days or more
(a " Disability "), the Company may
terminate Executive's employment for Disability, at any time, upon
not less than thirty (30) days prior written notice (a "
Notice of Disability Termination ").
(c) Termination for Good Reason.
A Termination for Good Reason means
a termination by Executive by written notice given within thirty
(30) days after he becomes aware of the occurrence of the Good
Reason event. For purposes of this Employment Agreement, "
Good Reason " shall mean any material breach by the
Company of any provision of this Employment Agreement which goes
uncured for a period of thirty (30) days after the Company receives
a Notice of Termination for Good Reason.
(d) Notice of Termination for Good
Reason. A Notice of
Termination for Good Reason shall mean a notice that shall indicate
in reasonable detail the facts and circumstances claimed to provide
a basis for Termination for Good Reason. The Notice of Termination
for Good Reason shall provide for a date of termination not less
than ten (10) nor more than sixty (60) days after the date such
Notice of Termination for Good Reason is given.
(e) Cause. Subject to the notification provisions of
Section 7(f) below, Executive's employment hereunder may be
terminated by the Company for Cause. For purposes of this
Employment Agreement, the term "Cause" shall be limited
to:
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the refusal of
Executive to follow the proper written direction of the Chief
Executive Officer, provided that the foregoing refusal shall not be
"Cause" if Executive in good faith believes that such direction is
illegal, unethical or immoral and promptly so notifies the
Board;
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failure by
Executive to perform the material duties required of him hereunder
(other than any such failure resulting from incapacity due to
physical or mental illness) which goes uncured for a period of ten
(10) days after a written demand for performance is delivered to
Executive by the Chief Executive Officer;
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Executive being
convicted of a felony (other than a felony involving a motor
vehicle);
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(iv)
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any material
breach of this Agreement by Executive that is not cured (if
curable) within ten (10) days of the Notice of Termination for
Cause; or
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Executive's
dishonesty, misappropriation or fraud with regard to the Company
(other than good faith expense account disputes).
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(f) Notice of Termination for Cause.
A Notice of Termination for Cause
shall mean a notice that shall indicate the specific termination
provision in Section 7(e) relied upon and shall set forth in
reasonable detail the facts and circumstances that provide for a
basis for Termination for Cause. The date of termination for a
Termination for Cause shall be the date indicated in the Notice of
Termination.
8. Consequences of Termination of
Employment.
(a) If Executive's employment is terminated during
the Employment Term by reason of Executive's death, the employment
period under this Employment Agreement shall terminate as of the
date of death without further obligations to Executive's legal
representatives under this Employment Agreement except
for:
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any Base Salary
or Bonus earned but not yet paid through the end of the month of
Executive's death;
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any earned but
unpaid Performance Bonus from a prior fiscal period;
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if at the end
of the fiscal year in which the termination occurred, the targets
of the Performance Bonus for such year have been achieved, then the
product of (A) the Performance Bonus achieved, multiplied by (B) a
fraction, the numerator of which is the number of days of said
fiscal year during which Executive was employed by the Company, and
the denominator of which is 365, which bonu
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