EXHIBIT 10.2
EMPLOYMENT
AGREEMENT
THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made as of January 1, 2009, between
MEDIA SCIENCES INTERNATIONAL, INC., a Delaware corporation with
offices at 8 Allerman Road, Oakland, New Jersey 07436
(“Employer”), and KEVAN D. BLOOMGREN
(“Employee”).
W I T N E S S E T H:
WHEREAS, Employer desires to retain
the services of Employee and Employee desires to be employed by
Employer upon the terms and conditions hereinafter set
forth;
NOW THEREFORE, in consideration of
the agreements herein contained, the parties hereto agree as
follows:
1.
EMPLOYMENT . Employer hereby employs Employee, and Employee
hereby agrees to serve, as Chief Financial Officer of Employer, for
the Term of Employment (as defined in Section 2). Employee agrees
to perform such services as are customary for such offices.
Employee further agrees to use Employee’s best efforts to
promote the interest of Employer and to devote Employee’s
full business time and energies during normal business hours to the
business and affairs of Employer during the Term of
Employment.
2.
TERM OF EMPLOYMENT . The employment hereunder which
commences as of January 1, 2009 and shall continue for a term of
one (1) year until December 31, 2009 (the “Term of
Employment”), unless earlier terminated as provided in
Section 3 or Section 8.
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3.
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INVOLUNTARY
TERMINATION : This
Agreement may be terminated early upon:
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A.
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upon the death of Employee
(“Death”);
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B.` at
the option of Employer upon 30 days prior written notice to
Employee, in the event Employee is unable to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period
of not less than 12 months (“Disability”);
C. upon
“good reason” which term shall mean a material negative
change in the Employee’s duties and responsibilities or
Employee’s base compensation, including but not limited to
the following:
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i.
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A material diminution in
Employee’s base compensation, authority, duties,
responsibilities;
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ii. A
change in the geographic location that is material at which
Employee must perform services;
iii. Any
other action or inaction that constitutes a material breach by
Employer under this agreement, that governs the terms of
Employee’s employment with Employer;
Employee must provide notice to
Employer within 90 days of the inception of the good reason
condition after which the Employer shall have 30 days to remedy the
condition before any termination based on Good Reason will be
treated as involuntary (“Good Reason”); notwithstanding
the foregoing, reasonable changes in authority, duties, or
responsibilities resulting as a consequence of a “Business
Change” shall not qualify as a good reason
condition;
D. upon
Employee’s discharge by the Board of Directors of Employer
for “cause” (as defined in Section 8 hereof)
(“For Cause”);
E. upon
Employee’s discharge by the Board of Directors “without
cause” (“Without Cause Termination”);
or
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F.
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by Employee’s voluntary
resignation (“Resignation”).
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A “Business Change”
shall mean a transaction or series of transactions between Employer
and a third party (“Business Successor”) that
constitute a “Change in Control” within the meaning of
Treasury Regulations Section 1.409A-3(i)(5), or a transaction or
series of transactions whereby the Business Successor becomes the
successor to all or a significant portion of Employer’s
present business.
A.
Base Salary . As compensation for the services to be
provided hereunder and in consideration of Employee’s
agreement not to compete as set forth in Section 5, during the Term
of Employment, Employer shall pay Employee an annual salary as
shall be established by Employer’s Board of Directors, which
shall be payable in appropriate installments to conform with the
regular payroll dates for salaried personnel of
Employer.
B.
Bonus . Employee shall, during the term of this Agreement,
be entitled to an annual performance bonus equal to such amount as
the Board of Directors may determine. Additionally, Employee shall
be entitled to such other bonuses as the Board of Directors shall
determine from time to time. Any bonus payable under this Section
will be paid in accordance with the Performance Based Cash Bonus
Compensation Plan in effect during the year in which any such bonus
may be awarded.
C.
Stock Grant . Employee is hereby granted a restricted stock
award (“RSA”) of 50,000 shares of Employer’s
common stock, par value $0.001 per share. The RSA shall vest the
earlier of i) one year from the date of this Agreement, or, ii)
Change in Control” which shall mean an event or series of
events that constitutes a change in the
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ownership or effective control of Employer, or a
change in the ownership of a substantial portion of the assets of
Employer as defined in Treasury Regulations Section
1.409A-3(i)(5).
D.
Other Benefits . Employee shall be entitled to the following
fringe benefits, perquisites, and other benefits of employment
during the Term of Employment: (i) medical and dental insurance
under such group medical, dental and vision insurance policies as
Employer may provide to its employees; (ii) sick days in accordance
with Employer’s policy regarding officers; (iii) four (4)
weeks vacation in each year pro-rata; (iv) participation in
Employer’s 401(k) plan or such other plan as Employer may
adopt; (v) participation in Employer’s employee stock option
plan, and/or such independent plan as may be established; and (vi)
Employer shall also during the term hereof, provide and fully pay
for a fifteen year (15-year) term life insurance policy on the life
of Employee, subject to Employee’s reasonable insurability,
with a face amount of benefit of $1,000,000 and with the
beneficiary thereof to be Employee’s estate, or as otherwise
directed by Employee; Employee shall have the option to maintain
such insurance at his own expense commencing the end of the term
hereof, if such term is not renewed. In addition to the foregoing,
Employee shall also be entitled to any benefits, perquisites and
other benefits, to the extent that the Board of Directors
determines such benefits are to be made available to
Employer’s employees or management employees in general.
Notwithstanding anything to the contrary in this Agreement, in the
event of termination of employment for any reason other than
“For Cause”, Employee is entitled to 12 months of
continued health care benefit coverage, paid for by Employer, under
the same terms, conditions and coverage that Employee enjoys at the
time of termination.
E.
Payment Upon Early Termination . In the event of early
termination of employment “For Cause” for any reason
specified in Section 8 hereof, or for a Resignation, Employer shall
no longer be obligated to make any payments of compensation to
Employee or Employee’s estate under this Agreement except as
provided for herein. However, any salary or bonus earned and/or
vested for prior periods, but not yet paid, shall be paid by
Employer to Employee or Employee’s estate. In the event of
early termination of employment due to Employee’s Disability,
Without Cause Termination, or involuntary termination for
“Good Reason”, the Employee or Employee’s estate
shall be paid two hundred, four thousand dollars ($204,000) within
two weeks of Termination. As consideration for such payment in
connection with Without Cause Termination or involuntary
termination for “Good Reason”, should a Business Change
have been transacted, for a period of six months thereafter,
Employee agrees not to accept an employment opportunity with or be
employed by Business Successor.
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5.
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COVENANT NOT TO COMPETE;
INTELLECTUAL PROPERTY; CONFIDENTIALITY .
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A.
Covenant Not to Compete and Solicit . During the Term of
Employment and for a period of two years following the termination
of Employment, Employee will not, within any jurisdiction in which
Employer or any affiliate conducts its business operations, or in
any way materially competing with Employer, directly or indirectly,
own,
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