EMPLOYMENT
AGREEMENT
THIS
EMPLOYMENT AGREEMENT is made effective as of the 8th day of July,
2008 (the “Effective Date”).
SPONGETECH DELIVERY SYSTEMS,
INC. , having an
address at 43 West 33 rd Street Suite 600, New York, New York 10001
("Employer");
MICHAEL
METTER , an
individual having an address at [redacted]
(“Employee”)
WHEREAS, Employee has agreed to continue to serve as an
Employee of Employer, and Employer has agreed to hire Employee as
such, pursuant to the terms and conditions of this Employment
Agreement (the “Agreement”).
NOW
THEREFORE THIS AGREEMENT WITNESSETH THAT
in consideration of the premises and
the mutual covenants, agreements, representations and warranties
contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Employee
and Employer hereby agree as follows:
ARTICLE
1
EMPLOYMENT
Employer hereby
affirms, renews and extends the employment of Employee as Chief
Operating Officer, and Employee hereby affirms, renews and accepts
such employment by Employer for the “Term” (as defined
in Article 3 below), upon the terms and conditions set forth
herein.
ARTICLE
2
DUTIES
During the
Term, Employee shall serve Employer faithfully, diligently and to
the best of his ability, under the direction and supervision of the
Board of Directors of Employer and the President and the Chief
Executive Officer of Employer, and shall use his best efforts to
promote the interests and goodwill of Employer, and any affiliates,
successors, assigns, parent corporations, subsidiaries, and/or
future purchasers of Employer. Employee shall render such services
during the Term at Employer’s principal place of business or
at such other place of business as may be determined by the Board
of Directors of Employer, as Employer may from time to time
reasonably require of him, and shall devote all of his business
time to the performance thereof. Employee shall have those duties
and powers as generally pertain to each of the offices of which he
holds, as the case may be, subject to the control of the Board of
Directors.
ARTICLE
3
TERM
The
“Term” of this Agreement shall commence on the
Effective Date and continue thereafter for a term of three (3)
years, as may be extended or earlier terminated pursuant to the
terms and conditions of this Agreement.
ARTICLE
4
COMPENSATION
4.1
Employer shall issue to Employee an aggregate of Four Million
(4,000,000) shares of the Employer’s Class B Stock, payable
upon execution of this Agreement.
4.2
During the Term, Employee shall be entitled to participate in
all medical and other employee benefit plans, including vacation,
sick leave, retirement accounts and other employee benefits
provided by Employer to similarly situated employees on terms and
conditions no less favorable than those offered to such employees.
Such participation shall be subject to the terms of the applicable
plan documents, Employer’s generally applicable policies, and
the discretion of the Board of Directors or any administrative or
other committee provided for in, or contemplated by, such
plan.
4.3
Employer shall reimburse Employee for reasonable and
necessary expenses incurred by him on behalf of Employer in the
performance of his duties hereunder during the Term, including,
without limitation, reimbursement for cellular telephone expenses
in accordance with Employer's then customary policies, provided
that such expenses are adequately documented.
4.4
Employee shall be eligible to earn a cash bonus during the
Employment Term at the discretion of the Company’s Board of
Directors, or if the Board organizes a compensation committee, such
committee. Executive’s bonus, if any, shall be subject to all
applicable tax and payroll withholdings.
ARTICLE
5
OTHER
EMPLOYMENT
Except as may
otherwise be provided for herein, during the Term of this
Agreement, Employee shall devote substantially all of his business
and professional time and effort, attention, knowledge, and skill
to the management, supervision and direction of Employer’s
business and affairs as Employee’s highest professional
priority. Except as provided below, Employer shall be entitled to
all benefits, profits or other issues arising from or incidental to
all work, services and advice performed or provided by Employee.
Nothing in this Agreement shall preclude Employee from devoting
reasonable periods required for:
|
|
|
serving as a
director or member of a committee of any organization or
corporation involving no conflict of interest with the interests of
Employer, provided that Employee must obtain the written consent of
Employer;
|
|
|
|
serving as a
consultant in his area of expertise (in areas other than in
connection with the business of Employer), to government,
industrial, and academic panels where it does not conflict with the
interests of Employer; and
|
|
|
|
managing his
personal investments or engaging in any other non-competing
business;
|
provided that
such activities do not materially interfere with the regular
performance of his duties and responsibilities under this
Agreement.
ARTICLE
6
CONFIDENTIAL
INFORMATION/INVENTIONS
6.1
Employee shall not, in any manner, for any reasons, either
directly or indirectly, divulge or communicate to any person, firm
or corporation, any confidential information concerning any matters
not generally known in the wireless communications industry or
otherwise made public by Employer which affects or relates to
Employer’s business, finances, marketing and/or operations,
research, development, inventions, products, designs, plans,
procedures, or other data (collectively, “Confidential
Information”) except in the ordinary course of business or as
required by applicable law. Without regard to whether any item of
Confidential Information is deemed or considered confidential,
material, or important, the parties hereto stipulate that as
between them, to the extent such item is not generally known in the
wireless communications industry, such item is important, material,
and confidential and affects the successful conduct of
Employer’s business and goodwill, and that any breach of the
terms of this Section 6.1 shall be a material and incurable breach
of this Agreement. Confidential Information shall not include: (i)
information obtained or which became known to Employee other than
through his employment by Employer; (ii) information in the public
domain at the time of the disclosure of such information by
Employee; (iii) information that Employee can document was
independently developed by Employee; (iv) information that is
disclosed by Employee with the prior written consent of Employer
and (v) information that is disclosed by Employee as required by
law, governmental regulation or court order.
6.2
Employee further agrees that all documents and materials
furnished to Employee by Employer and relating to the
Employer’s business or prospective business are and shall
remain the exclusive property of Employer. Employee shall deliver
all such documents and materials, not copied, to Employer upon
demand therefore and in any event upon expiration or earlier
termination of this Agreement. Any payment of sums due and owing to
Employee by Employer upon such expiration or earlier termination
shall be conditioned upon returning all such documents and
materials, and Employee expressly authorizes Employer to withhold
any payments due and owing pending return of such documents and
materials.
6.3
All ideas, inventions, and other developments or improvements
conceived or reduced to practice by Employee, alone or with others,
during the Term of this Agreement, whether or not during working
hours, that are within the scope of the business of Employer or
that relate to or result from any of Employer’s work or
projects or the services provided by Employee to Employer pursuant
to this Agreement, shall be the exclusive property of Employer.
Employee agrees to assist Employer, at Employer’s expense, to
obtain patents and copyrights on any such ideas, inventions,
writings, and other developments, and agrees to execute all
documents necessary to obtain such patents and cop
|