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.
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.
(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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