EMPLOYMENT
AGREEMENT
This Employment Agreement (this "Agreement") is
made and entered into as of this 24th day of October 2006, by and
between New Motion, Inc. a Delaware corporation (the "
Company ") and Derrin Griffiths
("Employee").
1.
Engagement and
Duties.
1.1 Upon the terms and subject to the
conditions set forth in this Agreement, the Company hereby engages
and employs Employee as Director of Online Marketing. Employee
hereby accepts such engagement and employment.
1.2 Employee will have access to certain
confidential information and may, during the course of his
employment, develop certain information which will be the property
of the Company. Employee will be required to sign the
Company’s “Proprietary Information and Assignment of
Inventions Agreement” as a condition of his employment under
this Agreement.
1.3 Employee’s duties and responsibilities
shall be as follows: the efficient running of the daily marketing
campaigns as well as overall identification and analysis of
potential new business opportunities or technologies, subject to
the supervision, direction and control of the VP of Marketing of
the Company. In addition, Employee's duties shall include those
duties and services for the Company and its affiliates as the Board
shall from time to time reasonably direct. Employee shall report
directly to the VP of Marketing of the Company.
1.4 Employee agrees to devote his primary business
time, energies, skills, efforts and attention to his duties
hereunder, and will not, without the prior written consent of the
Company, which consent will not be unreasonably withheld, render
any material services to any other business concern. Employee will
use his best efforts and abilities faithfully and diligently to
promote the Company's business interests.
1.5 Except for routine travel incident to the
business of the Company, Employee shall perform his duties and
obligations under this Agreement principally from an office
provided by the Company in Los Angeles, California, or such other
location in Los Angeles County, as the CEO may from time to time
determine. In addition, the Employee will be expected to make
routine trips to the company’s headquarters in Orange County
California as his job requires.
2.
Term of
Employment. Employee’s employment pursuant to this
Agreement shall commence on November 13, 2006 (“Start
Date”) and shall terminate on the earliest to occur of the
following:
(a) the close of business on the second anniversary
of the Start Date;
(b) the death of Employee ;
(c) delivery to Employee of written notice of
termination by the Company if Employee shall suffer a
“permanent disability,” which for purposes of this
Agreement shall mean a physical or mental disability which renders
Employee , in the reasonable judgment of the Board, unable to
perform his duties and obligations under this Agreement for 90 days
in any 12-month period;
(d) notice to Employee of termination by the
Company for Cause. For purposes of this Agreement, Cause means:
(ii) any material breach of any of the terms of this Agreement;
(ii) any act or omission knowingly undertaken or omitted by
Employee with the intent of causing damage to the Company, its
properties, assets or business, goodwill, or its stockholders,
officers, directors or employees; (ii) commission of any material
act of dishonesty, fraud, misrepresentation, misappropriation,
embezzlement, or other act of moral turpitude; (iii) Employee 's
consistent failure to perform his normal duties or any obligation
under any provision of this Agreement, in either case, as directed
by the Chief Employee Officer and/or the Board; (iv) conviction of,
or pleading nolo contendere to (A) any crime or offense involving
monies or other property of the Company; (B) any felony offense; or
(C) any crime of moral turpitude; or (v) the chronic or habitual
use or consumption of drugs or alcoholic beverages; or
In the event
Employee is terminated for Cause pursuant to section 2(d), the
Employee shall only receive his base salary though the termination
date and shall not be entitled to any additional compensation,
including salary, bonus or commissions.
3.
Compensation; Employee
Benefit Plans.
3.1 Base Salary . Commencing on the Start Date, the Company
shall pay Employee an annual base salary of $105,000.
Employee’s base salary shall be payable in installments
throughout the year in the same manner and at the same times the
Company pays base salaries to other Employee’s of the
Company.
3.2 Commission . Employee will also be eligible to receive a
commission, up to $60,000 per year (the "Commission") based
On-Target Marketing:
3.3 Vacation . All vacation shall be paid and earned in
accordance with the Company’s vacation policy.
3.4 Other Benefits . During the term of his employment hereunder,
Employee shall be eligible to participate in all operative employee
benefit and welfare plans of the Company then in effect from time
to time and in respect of which all Employees of the Company
generally are entitled to participate ("Company Employee Benefit
Plans"), including, to the extent then in effect, medical, and
other insurance plans, all on the same basis applicable to
employees of the Company whose level of management and authority is
comparable to that of Employee .
3.5 The Company reserves the right to modify,
suspend, or discontinue any and all of the above-mentioned plans,
practices, policies and programs at any time as long as such action
is taken generally with respect to other similarly situated
Employee’s of the Company.
4.1 Generally . Employee shall be entitled to reimbursement
from the Company for the reasonable costs and expenses which he
incurs in connection with the performance of his duties and
obligations under this Agreement in a manner consistent with the
Company's practices and policies as adopted or approved from time
to time by the Board.
4.2 Travel . All travel requests must be approved in
advance by the VP of Online Marketing. The Company will reimburse
Employee for expenses reasonably incurred by him for business
travel, including transportation, lodging and reasonable
entertainment expenses, pursuant to the Company’s Travel
Policy.
5.1 Agreement to Arbitrate . Employee and the Company agree to arbitrate
before a neutral arbitrator any and all disputes or claims arising
from or relating to Employee’s recruitment to or employment
with the Company, or the termination of that employment, including
claims against any current or former agent or employee of the
Company, whether the disputes or claims arise in tort, contract, or
pursuant to a statute, regulation, or ordinance now in existence or
which may in the future be enacted or recognized, including, but
not limited to, the following claims:
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claims for
fraud, promissory estoppel, fraudulent inducement of contract or
breach of contract or contractual obligation, whether such alleged
contract or obligation be oral, written, or express or implied by
fact or law;
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claims for
wrongful termination of employment, violation of public policy and
constructive discharge, infliction of emotional distress,
misrepresentation, interference with contract or prospective
economic advantage, defamation, unfair business practices, and any
other tort or tort-like causes of actio
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