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EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT (the "AGREEMENT") made as of the 4th day
of
February, 2008 ("EFFECTIVE DATE") by and between Environmental
Solutions
Worldwide, Inc., a Florida corporation (the "COMPANY"), and
Praveen Nair
("EMPLOYEE").
W I T N E S S E T H :
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WHEREAS, the Company wishes to retain Employee as Chief
Accounting
Officer pursuant to the terms and conditions hereinafter set
forth; and
WHEREAS, Employee desires to work for the Company on the terms
and
conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants
hereinafter contained, and other good and valuable
consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties
hereto, intending
to be legally bound, do hereby agree as follows:
1. EMPLOYMENT; TERM. Effective the date first written above,
the
Company hereby employs Employee, and Employee hereby accepts
employment with the
Company, in accordance with and subject to the terms and
conditions set forth
herein. The term of this Agreement shall commence on the day
first written above
and, unless earlier terminated in accordance with Paragraph 5
hereof, shall
terminate two years from the Effective Date (the "TERM"), unless
sooner
terminated as provided in this Agreement.
2. DUTIES
(a) During the Term, Employee shall serve as Chief
Accounting
Officer of the Company.
(b) Employee shall have such authority and responsibility as
may reasonably be assigned to him by the Chief Executive
Officer, President and
or Board of Directors of the Company in its discretion.
(c) During the Term, Employee shall devote the majority of
his
business time and best efforts to the business and affairs of
the Company,
except as otherwise specifically permitted by the Company.
For purposes of this section 2 (c) "MAJORITY" shall mean a
minimum of forty (40) hours per week.
3. SALARY, BONUSES AND BENEFITS. As compensation and
consideration for
the performance by Employee of his obligations to the Company
under this
Agreement, Employee shall be entitled to the compensation and
benefits described
in EXHIBIT A attached hereto and made a part hereof (subject, in
each case, to
the provisions of Section 5 hereof).
<PAGE>
4. EXPENSES. The Company agrees to reimburse Employee for
all
reasonable and necessary travel, business entertainment, office
materials, and
other business expenses. Such reimbursements shall be made by
the Company within
a reasonable time in accordance with the Company's standard
procedures. Employee
agrees to obtain written approval from an authorized officer of
the Company of
expenses and always provide vouchers for all of said expenses in
accordance with
applicable taxing authority rules and regulations.
5. TERMINATION. Employee's employment hereunder may be
terminated prior
to the end of the Term under the following circumstances:
(a) DEATH. Employee's employment hereunder shall terminate
upon Employee's death.
(b) TOTAL DISABILITY. The Company may terminate Employee's
employment hereunder at any time after Employee becomes "TOTALLY
DISABLED." For
purposes of this Agreement, Employee shall be "TOTALLY DISABLED"
upon Employee's
inability to perform his duties and responsibilities
contemplated under this
Agreement for a period of more than ninety (90) consecutive days
due to physical
or mental incapacity or impairment. Such termination shall
become effective five
(5) days after the Company gives notice of such termination to
Employee, or to
Employee's spouse or legal representative, in accordance with
Paragraph 8
hereof.
(c) TERMINATION BY THE COMPANY FOR CAUSE. The Company may
terminate Employee's employment hereunder for Cause at any time
after providing
written notice to Employee. For purposes of this Agreement, the
term "CAUSE"
shall mean any of the following: (i) perpetration by Employee of
an intentional
and knowing fraud against or affecting the Company or any of its
affiliates, or
any customer, client, agent or employee of the Company, or any
of its
affiliates; (ii) any willful or intentional act by Employee that
is reasonably
expected, in the Company's good faith judgment, to materially
injure the
reputation, business or business relationships of the Company or
any of its
affiliates; (iii) conviction (including conviction on a NOLO
CONTENDERE plea) of
a felony involving fraud, dishonesty or moral turpitude as
determined by a
non-appealable decision of a court of competent jurisdiction;
(iv) the neglect
or failure or refusal of Employee to perform Employee's duties
hereunder (other
than as a result of total or partial incapacity due to physical
or mental
illness); (v) the breach of a covenant set forth in Paragraph 7
hereof; or (vi)
any other material breach of this Agreement; provided, however,
that in the
circumstances described in clauses (iv) or (vi) of this
Paragraph 5(c) Employee
has failed to cure such neglect, failure, refusal or breach
within ten (10) days
after the receipt of written notice thereof describing in
reasonable detail such
neglect, failure, refusal or breach.
(d) TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company
may
terminate Employee's employment at any time and for any reason
or no reason upon
written notice.
6. COMPENSATION FOLLOWING AND EFFECTS OF TERMINATION PRIOR TO
THE END
OF THE TERM. In the event that Employee's employment hereunder
is terminated
prior to the end of the Term, Employee shall be entitled only to
the following
compensation and benefits upon such termination and such other
following effects
of termination shall apply:
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<PAGE>
(a) TERMINATION BY REASON OF DEATH OR TOTAL DISABILITY OR BY
THE COMPANY FOR CAUSE. In the event that Employee's employment
is terminated
prior to the expiration of the Term by reason of Employee's
death or Total
Disability or for Cause pursuant to Paragraph 5(a), 5(b) or 5(c)
hereof,
respectively, the Company shall pay the following amounts to
Employee (or
Employee's spouse or estate, as the case may be):
i. any accrued but unpaid Base Salary (as defined in, and
determined pursuant to, EXHIBIT A attached hereto) for
services rendered to the date of termination less any
amounts
received by Employee under the Company's long-term
disability
plan;
ii. any accrued but unpaid Incentive Commission (as defined
in,
and determined pursuant to, EXHIBIT A attached hereto) due
Employee as of the date of termination;
iii. any accrued but unpaid expenses required to be
reimbursed
pursuant to Section 4 hereof; and
iiii. any accrued but unpaid vacation pay.
The benefits to which Employee and/or Employee's family may be
entitled upon
such termination pursuant to the plans, programs and
arrangements referred to in
EXHIBIT A attached hereto shall be determined and paid in
accordance with the
terms of such plans, programs and arrangements.
(b) TERMINATION BY THE COMPANY WITHOUT CAUSE.
(i) In the event that Employee's employment is
terminated by the Company without Cause, the Company shall pay
the following
amounts to Employee:
1. any accrued but unpaid Base Salary (as defined in, and
determined pursuant to, EXHIBIT A attached hereto) for
services rendered to the date of termination;
2. any accrued but unpaid Incentive Commission (as defined
in,
and determined pursuant to, EXHIBIT A attached hereto) due
Employee as of the date of termination;
3. any accrued but unpaid expenses required to be reimbursed
pursuant to Section 4 hereof;
4. any accrued but unpaid vacation pay; and
5. If the employee is terminated without cause the employee
shall
be entitled to receive, continued payment of three (3)
months
of the Base Salary and three (3) of bonus payment (as
defined
in, and determined pursuant to, EXHIBIT A attached hereto),
that he otherwise would have been entitled to receive
pursuant
to EXHIBIT A.
(ii) The benefits to which Employee and/or Employee's
family may be entitled upon termination of Employee's employment
by the Company
without Cause pursuant to the plans, programs and arrangements
referred to in
EXHIBIT A attached hereto and shall be determined and paid in
accordance with
the terms of such plans, programs and arrangements.
(c) NO OTHER BENEFITS OR COMPENSATION. Except as may
be specifically provided under this Agreement or under the terms
of any
incentive compensation, employee benefit or fringe benefit plan
applicable to
Employee at the time of the termination of Employee's employment
prior to the
end of the Term, Employee shall have no right to receive any
other compensation
or payment, or to participate in any other plan, arrangement or
benefit, with
respect to any future period after such termination.
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<PAGE>
7. NONCOMPETITION AND NONSOLICITATION; NONDISCLOSURE OF
PROPRIETARY
INFORMATION; SURRENDER OF RECORDS.
(a) NONCOMPETITION; NONSOLICITATION.
(i) Employee acknowledges and recognizes the highly
competitive nature of the Company's business and that Employee's
knowledge,
experience and expertise, his position with the Company and
access to and use of
the Company's confidential records and proprietary information
renders Employee
special and unique. In consideration of the amounts that may
hereafter be paid
to Employee pursuant to this Agreement (including pursuant to
Paragraph 3
hereof), Employee agrees that during the Term and the Covered
Term (as defined
below), Employee shall not, directly or indirectly (as defined
below), (x)
engage on his own behalf in a business that produces catalyst
based emission
control or remediation devices or processes(as defined below),
or (y) own any
interest in or engage in or perform any service for any person,
firm,
corporation or other entity, either as a partner, owner,
employee, consultant,
agent, officer, director or shareholder that (A) derives
substantial revenues
from the production of catalyst based emission control or
remediation devices or
processes or (B) is a meaningful competitor of the Company in
the production of
catalyst based emissions control or remediation devices or
processes;
Notwithstanding the foregoing, in the event the Employee is
terminated without
cause, then in that event, Employee may engage in a related
business so long as
Employee is not engaged directly or indirectly in the design or
production of
Catalyst Based Emission Control or Remediation Devices or
Processes (as defined
herein). To the extent applicable, Employee will be governed by
the non
solicitation provisions of this Agreement even if Employee is
permitted to
engage in a related business.
(ii) In further consideration of the payment by the
Company to Employee of amounts that may hereafter be paid to
Employee pursuant
to this Agreement (including pursuant to Paragraph 3 hereof),
Employee agrees
that during the Term and during the Covered Time, Employee shall
not (a)
directly or indirectly solicit or attempt to solicit or
participate in the
solicitation of or otherwise advise or encourage any employee,
agent, consultant
or representative of, or vendor or supplier to, the Company or
any of its
affiliates to terminate his, her or its relationship with the
Company or any of
its affiliates or to reduce the amount of business it does with
the Company or
any of their affiliates; or (b) directly or indirectly solicit
or attempt to
solicit or participate in the solicitation of or otherwise
advise or encourage
any employee, agent, consultant or representative of the Company
or any of its
affiliates to become an employee, agent, representative or
consultant of or to
any other individual or entity.
(iii) During the Term and during the Covered Time,
Employee agrees that upon the earlier of Employee's (x)
negotiating with any
Competitor (as defined below) concerning the possible employment
of Employee by
the Competitor, (y) receiving an offer of employment from a
Competitor, or (z)
becoming employed by a Competitor, Employee will immediately
provide notice to
the Company of such circumstances and provide copies of this
Paragraph 7 to the
Competitor. Employee further agrees that the Company may provide
notice to a
Competitor of Employee's obligations under this Agreement,
including, without
limitation, Employee's obligations pursuant to this Paragraph 7.
For purposes of
this Agreement, "COMPETITOR" shall mean during the Term and the
Covered Term,
any entity that then engages, directly or indirectly, in the
production of
emissions control or remediation devices or processes.
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<PAGE>
(iv) Employee understands that the provisions of this
Paragraph 7(a) may limit Employee's ability to earn a livelihood
in a business
similar to the business of the Company but nevertheless agrees
and hereby
acknowledges that the consideration provided under this
Agreement (including
pursuant to Paragraph 3 hereof) is sufficient to justify the
restrictions
contained in such provisions. In consideration thereof and in
light of
Employee's education, skills and abilities, Employee agrees that
Emp
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