EMPLOYMENT AGREEMENT

 

                                                                    EXHIBIT 10.1

 

                              EMPLOYMENT AGREEMENT

 

THIS  EMPLOYMENT  AGREEMENT  (the  "Agreement") entered into as of this 1 day of

February,  2002,  between  Expertise  Technology  Innovation,  Inc.,  a  Nevada

corporation  (the  "Company")  and  Larry  Wilcox  (the  "Executive").

 

     WHEREAS,  the  Company  has  strong  and  legitimate  business interests in

preserving and protecting its investment in the Executive, its trade secrets and

Confidential  Information,  and  its substantial relationships with vendors, and

Customers,  as  defined,  actual  and  prospective;  and

 

     WHEREAS,  the  Company  desires  to  preserve  and  protect  its legitimate

business  interests  further  by  restricting  competitive  activities  of  the

Executive  during  the  term  of  this Agreement and following (for a reasonable

time)  termination  of  this  Agreement;  and

 

     WHEREAS,  the  Company  desires  to  employ the Executive and to ensure the

continued  availability  to  the  Company  of  the Executive's services, and the

Executive  is  willing  to  accept such employment and render such services, all

upon  and  subject  to  the  terms  and  conditions contained in this Agreement;

 

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants

set  forth in this Agreement, and intending to be legally bound, the Company and

the  Executive  agree  as  follows:

 

     1.     Representations and Warranties.  The Executive hereby represents and

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warrants  to  the  Company  that  he  (i)  is  not  subject  to  any  written

nonsolicitation  or  noncompetition  agreement affecting his employment with the

Company  (other  than any prior agreement with the Company), (ii) is not subject

to  any  written confidentiality or nonuse/nondisclosure agreement affecting his

employment  with  the Company (other than any prior agreement with the Company),

and  (iii)  has  brought  to the Company no trade secrets, confidential business

information,  documents,  or  other  personal  property  of  a  prior  employer.

 

     2.     Term  of  Employment.

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          (a)     Term.  The  Company  hereby  employs  the  Executive,  and the

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Executive  hereby accepts employment with the Company for a period commencing on

the  date  of this Agreement and ending three years from the date of the closing

of  the merger by and among the Company, United Communications Hub, Inc. and New

ETI,  Inc.  (the  "Merger").

 

          (b)     Automatic  Extension.  Beginning  on  the third anniversary of

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the  date  of  this  Agreement and continuing every third anniversary thereafter

(the  "Extension  Date"),  this Agreement shall be automatically extended for an

additional term of three years unless either party notifies the other in writing

more  than  90 days prior to the Extension Date that this Agreement is no longer

to  be  extended.

 

          (c)     Continuing  Effect.  Notwithstanding  any  termination of this

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Agreement  except  for termination under Section 6(b), at the end of the Term or

otherwise,  the  provisions  of  Sections  7  and  8

 

 

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shall  remain  in full force and effect and the provisions of Section 8 shall be

binding upon the legal representatives, successors and assigns of the Executive.

 

     3.     Duties.

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          (a)     General  Duties.  The  Executive  shall serve as the president

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and chief executive officer of the Company with duties and responsibilities that

are  customary  for  such executives.  The Executive shall also perform services

for  such  subsidiaries  as  may be necessary.  The Executive shall use his best

efforts  to  perform  his  duties and discharge his responsibilities pursuant to

this  Agreement  competently, carefully and faithfully in determining whether or

not  the  Executive has used his best efforts hereunder, the Executive's and the

Company's  delegation  of  authority  and all surrounding circumstances shall be

taken  into  account  and  the best efforts of the Executive shall not be judged

solely  on  the  Company's  earnings  or  other  results  of  the  Executive's

performance.

 

          (b)     Devotion  of  Time.  The  Executive  shall  devote  such time,

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attention  and  energies  during  normal business hours (exclusive of periods of

sickness  and disability and of such normal holiday and vacation periods as have

been  established  by the Company) to the affairs of the Company as necessary to

completely  and  adequately perform his duties.  The Executive discloses and the

Company  acknowledges  the  following  business  venture  that  the Executive is

involved  with  and  may  devote  time  to:

 

                    Wilcox  Productions

 

The Company agrees that the Executive may devote time to these business ventures

so long as he continues to completely and adequately perform his duties pursuant

to  this  Agreement.  The  Executive shall not enter the employ of or serve as a

consultant  to,  or in any way perform any services with or without compensation

to, any other persons, business or organization without the prior consent of the

board  of  directors  of  the  Company.  In  addition,  the  Executive  shall be

permitted  to  devote  a  limited  amount  of his time, without compensation, to

professional,  charitable  or  similar  organizations.

 

          (c)     Location  of Office. The Executive's principal business office

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shall  be  at  the  Company's Rancho Cucamonga, California corporate offices, or

such  other  location  within 60 miles of Los Angeles, California.  However, the

Executive's  job responsibilities shall include all business travel necessary to

the  performance  of  his  job.

 

          (d)     Adherence  to  Inside  Information  Policies.  The  Executive

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acknowledges that the Company is publicly-held and, as a result, has implemented

inside information policies designed to preclude its executives and those of its

subsidiaries  from violating the federal securities laws by trading on material,

non-public information or passing such information on to others in breach of any

duty  owed  to  the  Company its parent or any third party.  The Executive shall

promptly  execute  any  agreements  generally  distributed by the Company to its

employees  requiring such employees to abide by its inside information policies.

 

     4.     Compensation  and  Expenses.

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          (a)     Salary.  For  the  services  of  the  Executive to be rendered

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under  this  Agreement,  the Company shall pay the Executive an annual salary of

$360,000  (the  Base  Salary").   The  Base  Salary  shall

 

 

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be  increased each year by an amount equal to the  cost of living increase based

upon  the  Consumer Price Index calculated upon the commencement of each year of

the  Agreement  using  the  prior  month as the measuring month published by the

Bureau  of  Labor  Statistics  (or  similar successor index.  The Consumer Price

Index  increase  calculation  shall  be  calculated  as  follows:

 

          Commencing  with  the one year anniversary of the commencement of

          the  term  and  the  beginning of each year thereafter during the

          term  of  this  Agreement, the Executive's annual salary shall be

          adjusted  in  accordance with the Consumer Price Index, all Urban

          Consumers  issued  by  the Bureau of Labor Statistics of the U.S.

          Department of Labor using the years 1982-84 as a base of 100 (the

          "Index").  At  the  commencement  of the second year, and of each

          year  thereafter,  the  Executive's adjusted Base Salary shall be

          multiplied  each year by a fraction, the numerator of which shall

          be  the  published  Index  number  for  the  month  preceding the

          commencement  of  the  new  year,  i.e.,  February  2005, and the

          denominator  of which shall be the published Index number for the

          month  of January 2004. The resulting increase to the Executive's

          Base  Salary  shall  be added to the prior year's Base Salary and

          become a part thereof for the current year. In the event that the

          Index  herein  referred to ceases to be published during the term

          of  this  Agreement,  or  if  a substantial change is made in the

          method  of establishing such index, then the determination of the

          adjustment in the Executive's compensation shall be made with the

          use  of  such  conversion  factor,  formula  or  table  as may be

          published  by  the  Bureau  of  Labor  Statistics,  or if none is

          available,  the parties shall accept comparable statistics on the

          cost of living in the United States as shall then be computed and

          published  by  an  agency  of  the  United States, or if not by a

          respected  financial  periodical  selected  by  the  Company.

 

          (b)     Incentive Bonus.    The Executive shall be entitled to receive

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a  bonus  based  upon  the  Company  achieving  certain  financial milestones as

determined  by  the  board  of  directors.  The  amount  of  the  bonus shall be

determined  by  the  board  of  directors  but  shall  not  exceed  100%  of the

Executive's  base  salary.

 

          (c)     Discretionary  Bonus.  The  Executive  shall  be  eligible  to

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receive  an annual bonus in an amount to be determined by the board of directors

based  on  any  criteria  or  factors  the board of directors deems appropriate.

 

          (d)     Stock  Options.  The  Executive  shall receive 1,500,000 stock

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options  to  purchase  the  Company's common stock exercisable at $.16 per share

under  the  Company's 2003 Stock Option Plan pursuant to a separate stock option

agreement, which options replace stock options granted to the Executive in April

2003 by United Communications Hub, Inc. The options shall vest over a three year

period  in  equal  increments each June 30 and December 31, subject to continued

employment.

 

          (e)     Expenses.  In  addition  to any compensation received pursuant

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to  Section  4(a)  and  (b),  the Company will reimburse or advance funds to the

Executive  for  all  reasonable travel, entertainment and miscellaneous expenses

incurred  in connection with the performance of his duties under this Agreement,

provided  that  the  Executive  properly  provides  a written accounting of such

 

 

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expenses  to  the  Company  in  accordance  with  the Company's practices.  Such

reimbursement  or  advances  will  be  made  in  accordance  with  policies  and

procedures  of the Company in effect from time to time relating to reimbursement

of  or  advances  to  Executive  officers.

 

     5.     Benefits.

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          (a)     Vacation  and Sick Leave.  For each 12-month period during the

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Term,  the Executive shall be entitled to five weeks of vacation without loss of

compensation  or other benefits to which he is entitled under this Agreement, to

be  taken  at  such  times  as  the  Executive may select and the affairs of the

Company  may permit.    The Executive shall be entitled to sick leave each year.

 

          (b)      Employee  Benefit  Programs.  The  Employee  is  entitled  to

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participate  in  any  pension,  401(k), insurance or other employee benefit plan

that is maintained by the Company for its executives, including programs of life

and  medical  insurance  and  reimbursement  of  membership fees in professional

organizations.

 

          (c)     Insurance.   The  Company shall pay or reimburse the Executive

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for  the  premiums  on  a life insurance policy in the face amount of $2 million

which  policy  shall  provide  that  it  is fully funded after no more than five

years.  This  policy shall be the sole property of the Executive and the Company

shall  not  retain  or be entitled to any benefit therefrom.   The Company shall

also  pay  premiums on the Company's medical insurance policy covering Executive

and  pay  the  premiums  or  reimburse  the  Executive  for disability insurance

covering  the  Executive's  disability  which insurance shall have only a 30-day

waiting period on disability insurance in an amount equal to the maximum allowed

by  the  insurance  company.

 

          (d)     Automobile.  The Company shall pay the Executive an automobile

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allowance  of  (i)  $1,500  per  month,  and (ii) the cost of insurance for such

automobile.

 

     6.     Termination.

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          (a)     Death  or  Disability.  Except  as  otherwise provided in this

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Agreement,  it  shall  automatically terminate without act by any party upon the

death,  or  disability  of  the  Executive.  For  purposes of this Section 6(a),

"disability" shall mean that for a period of 45 consecutive days or 90 aggregate

days  in  any  12-month  period,  the  Executive  is  incapable of substantially

fulfilling  the  duties  set  forth  in Section 3 because of physical, mental or

emotional  incapacity  resulting from injury, sickness or disease.  In the event

of  death  of  the  Executive,  the Executive's estate shall receive any unpaid,

earned  compensation  due  the  Executive  and  this  Agreement shall terminate.

 

          (b)     Termination  for  Cause.  The  Company  may  terminate  the

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Executive's  employment  pursuant to the terms of this Agreement at any time for

Cause  (as  defined  below)  by  giving  written  notice  of  termination.  Such

termination  shall  become  effective  upon the giving of such notice.  Upon any

such  termination  for Cause, the Executive shall have no right to compensation,

or  reimbursement  under  Section  4, or to participate in any Executive benefit

programs  under  Section 5, except as provided by law, for any period subsequent

to  the  effective  date  of  termination.  For  purposes  of this Section 6(b),

"Cause"  shall mean:  (i)the Executive is convicted of a felony which is related

to  the