EMPLOYMENT
AGREEMENT
THIS AGREEMENT is made and entered into as of
January 1, 2006 (the “Agreement”), by and between
MEDLINK INTERNATIONAL, INC., a Delaware corporation
(“MLI”), and KONRAD KIM
(“Employee”)(collectively the
“Parties”).
WITNESSETH:
WHEREAS, MLI is engaged, through its
subsidiaries, in the business of providing a virtual private
network, paging and other services to doctors and hospitals (the
“Business”); and
WHEREAS, Employee has represented that he has
the experience, background and expertise necessary to enable him to
perform all of the duties and execute all of the responsibilities
contemplated by this Agreement; and
WHEREAS, based on such representation, MLI
wishes to employ Employee as its Chief Technology Officer upon the
terms hereinafter set forth;
NOW, THEREFORE, in consideration of the premises
and the mutual covenants and agreements herein contained, and other
good and valuable consideration, the Parties agree as
follows:
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1.1.
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“Affiliate” means any Person
controlling, controlled by or under common control with
MLI.
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1.2.
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“Board” means the Board of
Directors of MLI.
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1.3.
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“Cause” means (a) Employee is
convicted of or pleads guilty to a felony, (b) the Employee, in
carrying out the Employee’s duties and responsibilities under
this Agreement, is guilty of neglect or misconduct resulting, in
either case, in economic harm to MLI and/or any of its subsidiaries
or Affiliates.
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1.4.
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“Change in Control” means any
transaction or series of transactions pursuant to which a
non-Affiliate obtains more than fifty percent (50%) of MLI’s
voting securities or obtains the ability to cast more than fifty
percent (50%) of the votes at MLI’s shareholder
meetings.
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1.5.
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“Common Stock” means
MLI’s $.01 par value per share common stock.
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1.6.
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“Date of Termination” means
(a) in the case of a termination for which a Notice of Termination
(as hereinafter defined in Section 5) is required, the date of
actual receipt of such Notice of Termination or, if later, the date
specified therein, as the case may be, and (b) in all other cases,
the actual date on which the Employee’s employment terminates
during the Term of Employment (as hereinafter defined in Section 3)
(it being understood that nothing contained in this definition of
“Date of Termination” shall affect any of the cure
rights provided to the Employee or MLI in this
Agreement).
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1.7.
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“Disability” means the
Employee’s inability to render, for a period of three
consecutive months, services hereunder.
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1.8.
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“Person(s)” means any
individual or entity of any kind or nature, including any other
person as defined in Section 3(a)(9) of the Exchange Act, and as
used in Sections 13(d) and 14(d) thereof.
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1.9.
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“Prospective Customer” shall
mean any corporation, partnership, trust or Person which has either
(a) entered into a nondisclosure agreement with MLI or any MLI
subsidiary or Affiliate or (b) has within the proceeding 18 months
received a currently pending and not rejected written proposal in
reasonable detail from MLI or any MLI subsidiary or
Affiliate.
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2.
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EMPLOYMENT . MLI hereby agrees to employ Employee, and
Employee hereby agrees to serve, subject to the provisions of this
Agreement, as an employee of MLI.
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2.1.
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Duties . Employee shall serve as WMGC’s Chief
Technical Officer and shall be responsible for technology and
systems required to support company operations, competitiveness and
product application development, tracking, testing and implementing
new developments in information systems technology, and
anticipating organizational modifications, establishing long-term
needs for information systems and plan strategy for developing
systems and acquiring hardware to meet application needs, managing
development and architectural planning for applications in
conjunction with business partners and clients, ensures
confidentiality, reliability and security of corporate data,
proprietary information, and intellectual property, functioning as
top level contact to assist end users in determining IS
requirements and solutions, working with the Chief Operating
Officer to maintain relationships with clients and establish new
relationships and business partners and such other and further
duties as may be assigned by the Board or the Chief Executive
Officer of WMGC.
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Employee will
be specifically responsible for the following: managing bandwidth
and reliability, building, planning and monitoring
the MedlinkVPN network which includes compliance with HIPPA and Industry VPN
standards, managing quality assurance, developing MedlinkVPN and other web system
applications, supporting, assisting and contacting clients and business partners to
determine business requirements and solutions and
research and development of new
technologies that would increase ROI and
competitiveness.
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3.
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TERM OF
AGREEMENT . This
Agreement shall commence on January 1, 2006, and shall continue
until December 31, 2010 (the “Term” or “Term of
Employment”), unless terminated as set forth
herein.
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4.1.
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Salary . Employee’s salary during the Term shall be
$32,000 per year and 120,000 options to purchase Common Stock (the
“Salary”) payable during the first quarter of the year.
The exercise price of the options shall be the fair market value of
the Common Stock on the date granted to Employee as determined by
the closing price of the Common Stock on such date, or, if the
Common Stock is not quoted in any inter-dealer quotation medium or
trading on any exchange, as may be reasonably determined by the
Board. Employee’s salary may be increased at the discretion
of the Compensation Committee of MLI’s Board of
Directors.
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4.2.
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Salary Vesting . Any Salary earned by Employee shall have a
vesting period of two years (the “Vesting Period”);
provided, however, that any unvested Salary at the end of the Term
shall immediately vest. During the Term, Employee hereby consents
to the placement of a stop transfer order by MLI and/or its
transfer agent, with respect to any unvested Salary. All Salary
shall immediately vest upon a Change in Control or termination of
employment.
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4.3.
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Bonus . MLI shall determine in its sole discretion to pay
Employee any bonus amount above the salary set forth
above.
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4.4.
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Health
Insurance .During the
Term, Employee shall receive full coverage under any health
insurance plan, if any, that MLI, may, from time to time, have in
place.
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4.5.
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Expense
Reimbursement .Employee
shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by the Employee in performing the
Employee’s duties and responsibilities hereunder in
accordance with the policies and procedures of MLI. At the end of
each fiscal year, the Employee and MLI shall in good faith
reconcile any differences and disputes with respect to timing,
right to reimbursement, reasonableness or documentation of any
items of expense reimbursement, it being agreed that no good faith
dispute respecting any of the foregoing shall constitute a basis
for the Employee or MLI terminating or attempting to terminate this
Agreement.
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4.6.
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Vacation .During each year of the Term of Employment, the
Employee shall be entitled to four weeks of paid vacation taken at
such times so as to not materially impede his duties hereunder.
Vacation days that are not taken may not be carried over into
future years.
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5.1.
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Termination Due to Death or Disability .
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5.1.1.
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Death . This Agreement shall terminate immediately
upon the death of Employee. Upon Employee’s death,
Employee’s estate or Employee’s legal representative,
as the case may be, shall be entitled to only the
following:
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5.1.1.1.
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All unvested
Salary accrued, but unpaid as of the date of Employee’s
death, which shall immediately vest;
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5.1.1.2.
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reimbursement
pursuant to Section 4.5, or any other provision hereof, for all
expenses incurred but not yet paid.
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5.1.1.3.
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continuation of
Employee’s Salary on a pro-rata basis for the additional term
of this agreement; and
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5.1.2.
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Disability . In the event of Employee’s Disability,
this Agreement shall terminate and Employee shall be entitled to
receive only the following:
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5.1.2.1.
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continuation of
Employee’s Salary on a pro-rata basis for Employee’s
Disability period (it being understood that such period will be six
months from the first date that Employee is unable to work) and 50%
of Employee’s Salary for the additional term of this
agreement; and
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5.1.2.2.
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reimbursement
pursuant to Section 4.5, or any other provision hereof, for all
expenses incurred but not yet paid.
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5.2.
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Termination by MLI for Cause . MLI may terminate the
Employee’s employment hereunder for Cause as provided in this
Section 5.2. If MLI terminates the Employee’s employment
hereunder for Cause, all unvested Salary shall be forfeited and the
Employee shall be entitled only to:
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5.2.1.1.
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All unvested
Salary accrued, but unpaid as of the date of Employee’s
termination, which shall immediately vest;
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5.2.1.2
reimbursement pursuant to Section
4.5 hereof or any other provision of this Agreement for expenses
incurred, but not yet paid prior to such termination of
employment.
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5.3.
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Termination
Without Cause .MLI may
terminate the Employee’s employment hereunder without Cause.
If MLI terminates the Employee’s employment hereunder without
Cause, other than due to death or Disability, the Employee shall be
entitled only to the following:
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5.3.1. the
Employee’s accrued and vested Salary through the Date of
Termination; and
5.3.2.
reimbursement pursuant to Section 4.6 hereof or any other provision
of this Agreement for expenses incurred, but not paid prior to such
termination of employment.
5.3.3
continuation of Employee’s
Salary for the additional term of this agreement shall immediately
vest; and
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5.4.
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Termination by Employee . Any termination of this Agreement
by Employee, by formal notice, or failure to perform under this
Agreement, shall have the same effect as a termination by MLI for
Cause.
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5.5.
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Notice of Termination . Any termination of the Employee by
MLI shall be communicated by a notice of termination to Employee
given in accordance with Section 8.3 of this Agreement (the
“Notice of Termination”). Such notice shall (a)
indicate the specific termination provision in this Agreement
relied upon and (b) if the termination date is other than the date
of receipt of such notice, specify the dates on which the
Employee’s employment is to be terminated (which date shall
not be earlier than the date on which such notice is
given).
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5.6.
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Payment .Except as otherwise provided in this Agreement, any
payments to which the Employee shall be entitled under this Section
5, including, without limitation, any economic equivalent of any
benefit, shall be made as promptly as possible following the Date
of Termination. If the amount of any payment due to the Employee
cannot be finally determined within thirty (30) days after the Date
of Termination, such amount shall be estimated on a good faith
basis by MLI and the estimated amount shall be paid no later than
thirty (30) days after such Date of Termination. As soon as
practicable thereafter, the final determination of the amount due
shall be made and any adjustment requiring a payment to or from the
Employee shall be made as promptly as practicable.
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6.
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Employee’s Representation .The Employee represents and
warrants to MLI that: (a) he is subject to no contractual,
fiduciary or other obligation which may affect the performance of
his duties under this Agreement; and (b) his employment with MLI
will not require him to use or disclose proprietary or confidential
information of any other person or entity.
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7.
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Non-Competition: Non-Disclosure
.
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7.1.
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Trade
Secrets . Employee acknowledges that his employment position
with MLI is one of trust and confidence. The Employee further
understands and acknowledges that, during the course of the
Employee's employment with MLI, the Employee will be entrusted with
access to certain confidential information, specialized knowledge
and trade secrets which belong to MLI, or its subsidiaries,
including, but not limited to, their methods of operation and
developing customer base, its manner of cultivating customer
relations, its practices and preferences, current and future market
strategies, formulas, patterns, devices, secret inventions,
processes, compilations of information, records, and customer
lists, all of which are regularly used in the operation of their
business and which the Employee acknowledges have been acquired,
learned and developed by them only through the expenditure of
substantial sums of money, time and effort, which are not readily
ascertainable, and which are discoverable only with substantial
effort, and which thus are the confidential and the exclusive
Property of MLI and its subsidiaries (hereinafter “Trade
Secrets”). The Employee covenants and agrees to use his best
efforts and utmost diligence to protect those Trade Secrets from
disclosure to third parties. The Employee further acknowledges
that, absent the protections afforded MLI and its subsidiaries in
this paragraph, the Employee would not be entrusted with any of
such Trade Secrets. Accordingly, the Employee agrees and covenants
(which agreement and covenant shall survive the termination of this
Agreement, regardless of the reason) as follows:
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7.1.1.
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The Employee
will at no time take any action or make any statement that will
discredit MLI, any of its subsidiaries or their products or
services.
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7.1.2.
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During the
period of the Employee's employment with MLI and for 60 months
immediately following the termination of such employment, the
Employee will not disclose or reveal to any person, firm or
corporation other than in connection with the business of MLI and
its subsidiaries or as may be required by law, any Trade Secret
used or useable by MLI or any of its subsidiaries, divisions or
affiliated companies (collectively the “Companies”) in
connection with their respective businesses, known to Employee as a
result of his employment by MLI, or other relationship with the
Companies, and which is not otherwise publicly available. Employee
further agrees that during the term of this Agreement and at all
times thereafter, he will keep confidential and not disclose or
reveal to any person, firm or corporation other than in connection
with the business of the Companies or as may be required by
applicable law, any information received by him during the course
of his employment with regard to the financial, business, or other
affairs of the Companies, their respective officers, directors,
customers or suppliers which is not publicly available.
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7.1.3.
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Upon the
termination of the Employee's employment with MLI, the Employee
will return to MLI all documents, customer lists, customer
information, product samples, presentation materials, drawing
specifications, equipment and other materials relating to the
business of any of the Companies, which the Employee hereby
acknowledges are the sole and exclusive property of the Companies
or any one of them.
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7.1.4.
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During the term
of the Agreement and, subject to the provisions of Subsection 7.1.6
hereof, for a period of 36 months immediately following the
termination of the Employee's employment with MLI, Employee will
not:
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7.1.4.1.
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solicit or
accept competing business from any customer of any of the Companies
or any person or entity known by the Employee to be or have been,
during the term of the Employee's employment with MLI, a customer
or Prospective Customer (as hereinafter defined) of any of the
Companies without the prior written consent of MLI;
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7.1.4.2.
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encourage,
request or advise any such customer or prospective customer of any
of the Companies to withdraw or cancel any of their business from
or with any of the Companies; or
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7.1.4.3.
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compete, or
participate as a shareholder, director, officer, partner (limited
or general), trustee, holder of a beneficial interest, employee,
agent of or representative in any business competing directly with
the Companies without the prior written consent of MLI, which may
be withheld in MLI's sole discretion; provided, however, that
nothing contained herein shall be construed to limit or prevent the
purchase or beneficial ownership by Employee of less than five
percent of any security registered under Section 12 or 15 of the
Securities Exchange Act of 1934.
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7.1.4.4.
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The Employee
will not during the period of his employment with MLI and, subject
to the provisions hereof for a period of 36 months immediately
following the termination of Employee's employment with
MLI,
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7.1.4.4.1.
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conspire with
any person employed by any of the Companies with respect to any of
the matters covered hereunder;
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7.1.4.4.2.
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encourage,
induce or solicit any person employed by any of the Companies to
facilitate the Employee's violation of the covenants contained
hereunder;
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7.1.4.4.3.
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assist any
entity to solicit the employment of any employee of any of the
Companies; or
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7.2.
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The
Employee expressly acknowledges that all of the provisions of this
Section 7 of this Agreement have been bargained for and the
Employee's agreement hereto is an integral part of the
consideration to be rendered by the Employee which justify the rate
and extent of the compensation provided for hereunder.
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7.3.
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The
Employee acknowledges and agrees that a violation of any one of the
covenants contained in this Section 7 shall cause irreparable
injury to MLI, that the remedy at law for such a violation would be
inadequate and that MLI shall thus be entitled to injunctive relief
to enforce that covenant.
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7.4.1.
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The
Employee .This Agreement
is personal to the Employee and, without the prior express written
consent of MLI, shall not be assignable by the Employee, except
that the Employee’s rights to receive any compensation or
benefits under this Agreement may be transferred or disposed of
pursuant to testamentary disposition, intestate succession or a
qualified domestic relations order or in connection with a
Disability. This Agreement shall inure to the benefit of and be
enforceable by the Employee’s estate, heirs, beneficiaries,
and/or legal representatives.
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7.4.2.
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MLI . This Agreement shall inure to the benefit of and be
binding upon MLI and its successors and assigns.
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8.1.
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Applicable Law .Except as may be otherwise provided herein,
this Agreement shall be governed by and construed in accordance
with the laws of the State of New York, applied without reference
to principles of conflict of laws.
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8.2.
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Amendments .This Agreement may not be amended or modified
otherwise than by a written agreement executed by t
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