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EMPLOYMENT AGREEMENT

Employment Agreement

EMPLOYMENT AGREEMENT | Document Parties: WEIDA COMMUNICATIONS, INC You are currently viewing:
This Employment Agreement involves

WEIDA COMMUNICATIONS, INC

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Title: EMPLOYMENT AGREEMENT
Governing Law: Delaware     Date: 9/13/2005
Industry: Misc. Financial Services     Sector: Financial

EMPLOYMENT AGREEMENT, Parties: weida communications  inc
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EMPLOYMENT AGREEMENT

 

 

 

EMPLOYMENT AGREEMENT effective as of April 4, 2005 (the “Commencement Date”) by and between Weida Communications, Inc. (the “Company”) and Christopher Lennon (the “Executive”) (this “Agreement”).

 

The parties hereto wish to enter into an employment agreement on the terms and conditions set forth below. Accordingly, in consideration of the premises and the respective covenants and agreements of the parties herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.    Term . The Executive's employment under this Agreement shall commence on the Commencement Date and shall end, unless terminated earlier pursuant to Section 4, at the close of business on April 3, 2007 (the “Term”); provided , however , that the Term shall thereafter be automatically extended for each succeeding one (1) year period (the Company shall also have the option to extend the Term for an additional one (1) year, thereby increasing the extension period to two (2) years) unless either party hereto shall provide the other party with a written notice at least ninety (90) days prior to the end of the then current Term, advising that the party providing the notice shall not agree to so extend the Term.

 

2.    Title, Duties and Authority . The Executive shall serve as Chief Operating Officer of the Company, and shall have such responsibilities and duties (consistent with the Executive's position as Chief Operating Officer of the Company) as may from time to time be assigned to the Executive by the board of directors of the Company (the “Board”), and shall have all of the powers and duties usually incident to such offices. The Executive shall devote substantially all of his working time and efforts to the business and affairs of the Company, except for vacations, illness and incapacity; provided , however , that the Executive may serve on the boards of directors of non-public companies and charitable organizations and may devote reasonable time to charitable and civic organizations, in all cases provided that the performance of his duties and responsibilities on such boards and in such service does not interfere substantially with the performance of his duties and responsibilities under this Agreement. The Company hereby agrees to consider the Executive as a possible replacement should the Company’s Chief Executive Officer need to be replaced during the Term.

 

3.    Compensation and Benefits .

 

(a)    Base Salary . During the Term, the Company shall pay the Executive a base salary (“Base Salary) at the rate of Two Hundred Twenty-Five Thousand Dollars ($225,000) per annum, payable in accordance with the Company’s regular payroll practices; provided , however , that following the Commencement Date, should the Company successfully complete a financing with an investment bank for an amount in excess of Ten Million Dollars ($10,000,000), the rate of Base Salary shall thereupon be prospectively increased to Two Hundred Seventy-Five Thousand Dollars ($275,000) per annum and, thereafter, the Compensation Committee of the Board shall on an annual basis consider increasing the Executive’s rate of Base Salary.

 


 

(b)    Annual Bonus . For each calendar year (or part thereof) during the Term, the Executive shall be eligible to receive from the Company a cash bonus of up to Twenty-Five Thousand Dollars ($25,000) upon the Company’s satisfaction of goals predetermined by the Board for each such year (with proration for any partial calendar years occurring during the Term). Such annual bonus shall be payable by January 31 of the next following calendar year. On an annual basis the Compensation Committee of the Board shall consider increasing the Executive’s eligible Bonus amount.

 

(c)    Equity Compensation . The Executive shall receive the following awards under the Weida Communications, Inc. Omnibus Securities and Incentive Plan (the “Plan”), such awards to be subject to all of the applicable terms and conditions of the Plan:

 

(i)    The Executive shall receive a stock option for the purchase of that number of shares of the Company’s common stock equal to eighty-five percent (85%) of the number of shares subject to the stock option granted contemporaneously under the Plan to the Company’s Chief Executive Officer (the “CEO’s Option”). The terms of the Executive’s option, including but not limited to the exercise price and vesting requirements, if any, shall be substantially the same as the terms of the CEO’s Option.

 

(ii)    The Executive shall receive a restricted stock award for Seven Hundred Fifty Thousand (750,000) shares, with a two (2) year service-based cliff vesting requirement for the lapse of the attendant transfer restrictions on the shares.

 

(d)    Employee Health and Dental Benefits . The Executive shall be entitled to participate in the Company’s employee health and dental benefits plan during the Term, as such plan may be in effect from time to time.

 

(e)    Expenses . The Executive shall be entitled to receive prompt reimbursement of his expenses incurred in the performance of his employment hereunder upon his submission to the Company of reasonable and customary expense claims to the Company, in accordance with the Company’s procedures for expense reimbursement.

 

(f)    Vacations . The Executive shall be entitled to four (4) weeks paid vacation during the Term with no right to carry over unused days.

 

(g)    Sick Pay . The Executive shall be entitled to five (5) paid sick days during the Term, with no right to carry over unused days.

 

4.    Termination . The Executive's employment hereunder with the Company may be terminated under the following circumstances:

 

(a)    Death or Disability . If the Executive shall die or become disabled during the Term, the Company may terminate the Executive's employment hereunder for death or “Disability,” as applicable. For purposes of this Agreement, the Executive’s “Disability” shall be determined in the sole discretion of the Board.

 

(b)    Cause . The Company by action of the Board may terminate the Executive's employment hereunder for Cause. For purposes of this Agreement, the Company shall have “Cause” to terminate the Executive's employment hereunder upon the determination by the Board of:

 

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(i)    the failure by the Executive to substantially perform the Executive's duties hereunder (other than any such failure resulting from the Executive's Disability which shall be subject to the provisions of Section 4(a));

 

(ii)    the willful violation by the Executive of any of the Executive's material obligations hereunder;

 

(iii)    the willful engaging by the Executive in misconduct which is materially injurious to the business or reputation of the Company or any of its affiliates; or

 

(iv)    the Executive's conviction of a felony.

 

Notwithstanding the foregoing, the Executive shall not be terminated for Cause without:

 

(A)    delivery of a written notice to the Executive setting forth the reasons for the Company's intention to terminate the Exe


 
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