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EMPLOYMENT AGREEMENT

Employment Agreement

EMPLOYMENT AGREEMENT | Document Parties: AMERICAN MEDICAL ALERT CORP You are currently viewing:
This Employment Agreement involves

AMERICAN MEDICAL ALERT CORP

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Title: EMPLOYMENT AGREEMENT
Governing Law: New York     Date: 4/2/2007
Industry: Medical Equipment and Supplies     Sector: Healthcare

EMPLOYMENT AGREEMENT, Parties: american medical alert corp
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EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT dated as of December 28, 2006 between AMERICAN MEDICAL ALERT CORP., a New York corporation (the "Company"), with offices located at 3265 Lawson Boulevard, Oceanside, New York 11572 and Randi Baldwin, an individual having an address at ______________________________ ("Employee").

 

W   I   T   N   E   S   S   E   T 60; H :

 

WHEREAS , the Company desires to retain the services of Employee upon the terms and conditions stated herein; and

 

WHEREAS , Employee desires to continue to be employed by the Company upon the terms and conditions stated herein.

 

NOW, THEREFORE , in consideration of the mutual covenants, conditions and promises contained herein, the parties hereby agree as follows:

 

1.   Employment . The Company hereby employs Employee for the period beginning as of November 1, 2006 and ending October 31, 2009, unless earlier terminated pursuant hereto (the "Employment Period").

 

2.   Duties . Subject to the authority of the Company's President, Employee shall be employed as the Company's Vice President, Communications and Marketing. Employee will perform such duties and services as a member of senior management team, and commensurate with her position as the Vice President, Communications and Marketing, as may from time to time be assigned to her by the President and or his designee.

 

3.   Full Time . Employee agrees that she will devote her full time and attention during regular business hours to the business and affairs of the Company. The foregoing shall not prevent the purchase, ownership or sale by Employee of investments or securities of publicly held companies and any other business that is not competitive with the Company or any subsidiary of the Company so long as such investment does not require active participation of Employee in the management of the business of such publicly held companies, does not interfere or conflict with the performance of Employee's duties hereunder and does not otherwise violate any of the provisions of this Agreement, or Employee's participation in philanthropic organizations to the extent that such participation does not interfere or conflict with the performance of Employee's duties hereunder and does not otherwise violate any provision of this Agreement.

 

4.   Compensation . In consideration of the duties and services to be performed by Employee hereunder, the Company agrees to pay, and Employee agrees to accept the amounts set forth below:

 

 

 


 

(a)   A base salary, to be paid on a bi- weekly basis, according to the following schedule:

 

Effective   

Amount  

 

11/01/06-  

$140,000 per annum,  

 

11/01/07-

$147,000 per annum   

 

11/01/08-

$155,000 per annum  

 

 

(b)   The Employee shall be eligible for bonus payments which may be awarded by the Board of Directors of the Company in its sole discretion.

 

(c)   The compensation provided for herein shall be in addition to any retirement, profit sharing, insurance or similar benefit which may at any time be payable to Employee pursuant to any plan or policy of the Company relating to such benefits, which additional benefits shall be made available to Employee on the same basis as they are generally made available to other executive officers of the Company. Such compensation shall be in addition to any options which may be granted under any stock option plan of the Company.

 

(d)   The Company shall reimburse Employee in accordance with the Company's normal policies for all reasonable travel, hotel, meal and other expenses properly incurred by her in the performance of her duties hereunder.

 

(e)   The Company shall provide Employee with a monthly automobile stipend in the amount of $700.00.

 

(f)   The Company has also granted Employee a one time sign on award of options to purchase 7,500 shares of AMAC common stock. The stock option grant was awarded on November 15, 2006 and the strike price of these options is equal to the fair market value of the stock at the close of business on November 15, 2006. The stock option will be subject to the terms of the Company's 2005 Stock Incentive Plan.

 

5.   Vacation . Employee shall be entitled to three (3) weeks vacation each fiscal year, to be taken at such time as is mutually convenient to the Company and Employee.

 

6.   Death . In the event of the death of Employee during the Employment Period, this Agreement and the employment of Employee hereunder shall terminate on the date of the death of Employee. The estate of Employee (or such person(s) as Employee shall designate in writing) shall be entitled to receive, and the Company agrees to continue to pay, in accordance with the normal pay practice of the Company, the base salary of Employee provided by paragraph 4(a) and the additional benefits, if any, provided by paragraph 4(c), in each instance for a period of one (1) year following the date of death of Employee.

 

7.   Disability . In the event that Employee shall be unable to perform because of illness or incapacity, physical or mental, the duties and services to be performed by her hereunder for a period of one hundred and eighty (180) consecutive days or an aggregate period of more than one hundred and eighty (180) days in any 12-Month period, the Company may terminate this Agreement after the expiration of such period. Upon such termination, Employee shall be entitled to receive the base salary provided by paragraph 4(a) and the additional benefits, if any, provided by paragraph 4(c), in each instance through the date of such termination.

 

 

2


 

8.   Non-Compete, Non-Solicitation and Non-Disclosure . 1) Employee covenants and agrees that throughout the Employment Period and for a period of twelve (12) months thereafter, she will not, directly or indirectly, own, manage, operate or control, or participate in the ownership, management, operation or control of, any business competing directly in the United States of America with the business conducted by the Company or any subsidiary of the Company during the Employment Period; provided , however , that Employee may own not more than 5% of the outstanding securities of any class of any corporation engaged in any such business, if such securities are listed on a national securities exchange or the NASDAQ Stock Market regularly traded in the Over the Counter market by a member of a national securities association.

 

(b)   Employee covenants and agrees that, (i) throughout the Employment Period, she will not directly or indirectly solicit, entice or induce any person (collectively, “Solicit”) who during the Employment Period is associated with, employed by or is a customer of the Company or any subsidiary, and (ii) for a period of twenty four (24) months following the Employment Period, she will not Solicit any person who is, or within the last three months of Employee's employment by the Company was, associated with, employed by, or was a customer of the Company or any subsidiary of the Company, in each case, to leave the employ of, terminate his or her association or its relationship with the Company, or any subsid-iary of the Company, or solicit the employment or business of any such person on her own behalf or on behalf of any other business enterprise.

 

(c)   Employee covenants and agrees that, throughout the Employment Period and at all times thereafter, she will not use, or disclose to any third party, trade secrets or confidential information of the Company, including, but not limited to, confidential information or trade secrets belonging or relating to the Company, its subsidiaries, affiliates, customers and clients or proprietary processes or procedures of the Company, its subsidiaries, affiliates, customers and clients, or the Company’s or its subsidiaries’ business, business plans, investments, customers, strategies, operations, records, financial information, assets, technology, data and information that reveals the processes, methodologies, technology or know-how of the Company or its subsidiaries. Trade secrets and confidential information shall include, but shall not be limited to, all information which is known or intended to be known only by employees of the Company, its respective subsidiaries and affiliates or others in a confidential relationship with the Company or its respective subsidiaries and affiliates which relates to business matters.

 

(d)   If any term of this paragraph 8 is found by any court having jurisdiction to be too broad, then and in that case, such term shall nevertheless remain effective, but shall be considered amended (as to the time or area or otherwise, as the case may be) to a point considered by said court as reason-able, and as so amended shall be fully enforceable.

 

 

3


 

(e)   In the event that Employee shall breach or threaten to breach any provision of this Agreement (including but not limited to the provisions of this paragraph 8), then Employee hereby consents to the granting of a temporary or permanent injunction against her by a court of competent jurisdiction prohibiting her from violating any provision of this Agreement. In any proceeding for an injunction and upon any motion for a temporary or permanent injunction, Employee agrees that her ability to answer in damages shall not be a bar or interposed as a defense to the granting of such temporary or permanent injunction against Employee. Employee further agrees that the Company will not have an adequate remedy at law in the event of any breach or threatened breach by Employee hereunder and that the Company will suffer irreparable damage and injury if Employee breaches any of the provisions of this Agreement.

 

(f)   The provisions of this Paragraph 8 shall survive any termination or expiration of this Agreement, irrespective of the basis therefore.

 

9.   Termination .

 

(a)   The Company may terminate this Agreement without liability (other than for the base salary pro-vided in paragraph 4(a) accrued to the date of termination) in the event of (i) a material breach by Employee of the provisions of this Agreement, which breach shall not have been cured by Employee within thirty (30) days following notice thereof by the Company to Employee, (ii) the commission of gross negligence or bad faith by Employee in the course of her employment hereunder, which commission has a material adverse effect on the Company, (iii) the commission by Employee of a criminal act of fraud, theft or dishonesty causing material damages to the Company or any of its subsidiaries, (iv) the conviction of Employee of (or plead nolo   contendere to) any felony, or misdemeanor involving moral turpitude if such misdem


 
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