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EXECUTIVE
EMPLOYMENT AGREEMENT
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OXFORD MEDIA,
INC.,
a Nevada
corporation,
as
"Employer"
and
J. RICHARD
SHAFER,
as
"Executive"
EXECUTIVE EMPLOYMENT
AGREEMENT
I
PARTIES
THIS EXECUTIVE
EMPLOYMENT AGREEMENT (the "Agreement") is entered into
effective as of the 20 th day of March, 2006 (the
"Effective Date"), by and between OXFORD MEDIA, INC., a Nevada
corporation (the “Employer”); and
, J. RICHARD SHAFER, an individual currently residing in
the State of California (the "Executive"). Employer and Executive
are sometimes referred to collectively herein as the "Parties", and
each individually as a "Party".
II
RECITALS
A. Employer is
engaged in the business of, among other things, among other things,
acting as a wireless and business systems provider specializing in
WiFi/WiMAX, IT Security and IT Integration, and Telecom (which
includes as part of these offering of services, the design and
installation of specialty communication systems for data, voice,
video, and telecom, and the deployment of fixed wireless networks),
in addition to providing support to affiliated entities of Employer
in developing private broadband networks and proprietary software
and hardware which allows for the delivery of low-cost broadband
Internet access as well as video and audio content on demand on a
Pay-Per-View basis.
B. Employer's
principal place of business is located at One Technology Drive,
Building H, Irvine, California, 92618 (the "Premises").
C. Executive is
acknowledged as having domain expertise and significant contacts in
the fields of technology to be pursued by Employer, and Executive
represents to possess certain other skills and contacts which would
enable Executive to benefit Employer.
D. The Parties
acknowledge that the Executive's abilities and services are unique
and essential to the prospects of Employer, and Employer has relied
upon Executive agreeing to serve Employer pursuant to this
Agreement.
E. Employer
desires to retain the services of Executive, and Executive desi
r es to be retained by Employer, all pursuant to the
terms and conditions contained herein.
F.
NOW, THEREFORE, in
consideration of the promises and the mutual covenants contained
herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties,
intending to be legally bound, hereby agree as follows:
III
EMPLOYMENT
3.1
Position. Employer hereby hires
Executive to serve in the position as executive vice president of
sales. Executive shall do and perform all services, duties,
responsibilities, and acts typically and customarily undertaken by
the executive vice president of sales of a corporation of size and
scope substantially similar to Employer, which shall include but
not be limited to those items prescribed by the Bylaws of Employer,
as amended from time-to-time, subject always to the final
determination of the Board of Directors of Employer (the "Board").
Said services may also include, but not be limited to, those listed
on Exhibit 3.1, attached hereto and incorporated herein by
reference.
3.2
Reasonable Additional or
Changed Responsibilities. Nothing herein shall
preclude the Board from changing Executive's title or materially
changing the duties of Executive if such Board has concluded in its
reasonable judgment that such change is in Employer's best
interests. At all times during the term of this Agreement,
Executive shall be employed as a senior executive of Employer, with
appropriate and commensurate compensation, title, rank and, status.
If Executive is elected or appointed a director or officer of any
of Employer's subsidiaries during the Term of this Agreement,
Executive, if he accepts such position, will serve in such capacity
without further compensation.
3.3 Time and
Effort.
3.3.1.
Entire Productive Time. Executive
shall devote Executive's entire business time, attention,
knowledge, and skill to the business and interests of Employer.
Employer shall be entitled to all the benefits and profits arising
from or incident to any and all services performed by Executive
pursuant to this Agreement.
3.3.2. Exceptions.
Nothing contained in Section 3.3.1., above, shall be construed to
prevent Executive from, during the Term of this Agreement:
(a) purchasing
securities in any corporation whose securities are regularly traded
provided that such purchase shall not result in his collectively
owning beneficially at any time five percent (5%) or more of the
equity securities of any corporation engaged in a business
competitive to that of Employer;
(b)
participating in conferences, preparing or publishing papers or
books or teaching, so long as Executive provides reasonable written
notice to the Board of such activities prior to Executive engaging
in them; or
(c) Continuing
to participate in business activities and pursuits in which
Executive is involved as of the Start Date.
3.4
Term.
3.4.1 .
Initial Term. Executive's employment
with Employer and the Term of this Agreement shall commence on the
20 th day of March, 2005 (the "Start Date"), and shall
continue for an initial period of three (3) years, unless sooner
terminated as provided for herein (the "Initial Term").
3.4.2.
Extended Term. This Agreement shall
remain in full force and effect and shall renew for an additional
twenty-four (24) months (the "Extended Term"), provided that
neither Party at least sixty days (60) prior to the end of Initial
Term gives written notice to the other of its decision to not have
the Agreement remain in full force and effect for the Extended
Term, thereby terminating the Agreement as of and at the end of the
Initial Term.
3.4.3.
Term Defined. For purposes of this
Agreement, the word "Term" shall specifically include the Initial
Term and all Extended Term hereunder.
3.5 Location.
Except for routine travel incident to the business
of Employer, Executive's services hereunder shall be principally
performed at the Premises, or such other location within the
surrounding area of the Premises.
IV
COMPENSATION
4.1 Base
Salary. Employer agrees to pay Executive and
Executive agrees to accept as compensation for the services and
obligations set forth herein, as Base Salary, the sums referenced
on Exhibit 4.1, attached hereto and incorporated herein by
reference, per annum, which sum shall be paid to Executive by
Employer in equal semi-monthly installments to be tendered to
Executive on the first and fifteenth day of each month, or at such
other intervals as may be mutually agreed upon by Employer and
Executive.
4.1.1.
Necessary Deductions. Employer shall
deduct from the Base Salary amounts sufficient to cover applicable
federal, state, and/or local income tax withholdings, and any other
amounts which Employer is required to withhold by applicable
law.
4.1.2.
Yearly Review. Upon each yearly
anniversary of the Start Date, Executive's Base Salary shall be
reviewed by the Board or the Compensation Committee of the Board
(the "Compensation Committee"). Base Salary may be increased above
those amounts referenced in Exhibit 4.1, but may never be
decreased, in the sole discretion of the Board or the Compensation
Committee.
4.2
Discretionary Annual Bonuses.
Employer may, but is not obligated to, pay Executive, as additional
annual compensation, during each calendar year ending during the
Term of this Agreement, such sums as may annually be determined by
the Board, or the Compensation Committee, including bonus, regular
and cost of living increases, and adjustments.
V
EXECUTIVE BENEFITS
5.1
Employer Policy. During the Term of
this Agreement, Executive shall be entitled to participate in
employee benefit plans or programs of Employer, if any, to the
extent that his position, tenure, salary, age, health and other
qualifications make him eligible to participate, subject to the
rules and regulations applicable thereto. Such additional benefits
shall include, subject to the approval of the Board, full medical,
dental and disability income insurance, and participation in
qualified pension and profit sharing plans, as well as a car
allowance of Seven Hundred Fifty Dollars ($750.00) per month and a
One Hundred Fifty Dollar ($150.00) monthly cell phone
allowance.
5.2 Business
Expenses. Employer will reimburse Executive for
all reasonable business expenses incurred by Executive in the
performance of Executive's duties provided that:
(a) Each such
expenditure is reasonable and is made to support the execution of
Employer's business or strategic plan;
(b) Executive
furnishes to Employer adequate records and other documentary
evidence required to substantiate such expenditures as a proper
deduction for federal income tax purposes.
5.3 Vacation
Time. Executive shall be granted three (3)
weeks paid vacation for each calendar year during the Term, with
said time being immediately available for Executive's benefit.
Vacation shall only be taken at such times as not to interfere with
the necessary performance of Executive's duties and obligations
under this Agreement unless otherwise agreed upon by the Board.
However, if at the end of any calendar year there is any accrued
and unused vacation time for Executive, additional vacation time
for Executive will not accrue until Executive takes all of
his vacation time accrued from prior calendar years. Upon
using said accrued vacation time, Executive shall once again
be entitled to three (3) weeks paid vacation time for that calendar
year, prorated for the month in which the remaining accrued
vacation time was taken.
5.4
Indemnification. Employer and
Executive shall execute an Indemnification Agreement in the form of
Exhibit 5.4, attached hereto and incorporated herein by reference,
which shall provide, among other things, that Employer shall
indemnify Executive against certain claims arising by reason of the
fact that he is or was an officer or director of Employer. In
addition to all rights under the Indemnification Agreement, the
Parties further agree that all liabilities incurred by Executive in
his capacity as an officer hereunder shall be incurred for the
account of Employer, and Executive shall not be personally liable
therefore. Executive shall not be liable to Employer, or any of its
respective subsidiaries, affiliates, employees, officers,
directors, agents, representatives, successors, assigns,
stockholders, and their respective subsidiaries and affiliates, and
Employer shall, and hereby agrees to, indemnify, defend and hold
Executive harmless from and against any and all damages and/or loss
or liability (including, without limitation, all cost of defense
thereof), for any acts or omissions in the performance of service
under and within the scope of this Agreement on the part of
Executive.
5.5 Change in
Control Payments.
5.5.1.
Change in Control. For purposes of
this Agreement, a "Change in Control" of Employer shall be deemed
to have occurred if (a) there shall be consummated (i) any
consolidation or merger of Employer into or with another person, as
such term in used in Sections 13(d)(3) and 14(d)(2) of the
Securities and Exchange Act of 1934, as amended (the "Exchange
Act"), in which Employer is not the continuing or surviving
corporation or pursuant to which shares of Employer's common stock
immediately prior to the merger have the same proportionate
ownership of common stock of the surviving corporation immediately
after the merger, or (ii) any sale, lease or other transfer (in one
transaction or a series of related transactions) of all or
substantially all of the assets of Employer; or, (b) the
shareholders of Employer approve any plan or proposal for the
liquidation or dissolution of Employer; or, (c) any person who is
not now the owner of twenty percent (20%) or more of Employer's
outstanding equity securities shall become the beneficial owner
(within the meaning of Rule 13d-3 under the Exchange Act) of twenty
percent (20%) or more of Employer's outstanding equity securities;
or, (d) individuals who are the members of the Board (once the
Board consists of at least seven members) cease to constitute a
majority of the members of the Board, provided that any person
becoming a member of the Board subsequent to such date whose
election or nomination for election was supported by two-thirds of
the directors who then comprised the Board shall be considered to
be part of the original majority.
5.5.2.
Severance Payment. Upon the
occurrence of a Change in Control of Employer, the employment of
Executive hereunder shall terminate and Employer shall pay (or, if
applicable, Employer shall ensure that it's successor or assign
shall pay) to Executive in cash, on the day on which the Change of
Control occurs (which for the purposes of this Agreement, shall be
the Termination Date for this Article V), the following:
(a) All accrued
and unpaid salary and other compensation payable to Executive by
Employer for services rendered by Executive to Employer through the
Termination Date;
(b) All accrued
and unused vacation and sick pay payable to Executive by Employer
with respect to services rendered by Executive to Employer through
the Termination Date; and
(c) Severance
pay in an amount equal to twenty-four (24) months salary based upon
the then existing salary of Executive, with the total amount to be
paid in one installment on the due date noted above, calculated at
a net present value.
5.5.3.
Provision of Services Following Change in Control.
At the request of Employer, Executive shall
continue to serve hereunder for a period of time not to exceed one
hundred eighty (180) days following the Termination Date. If
Employer requests Executive to perform such services, Executive
shall be compensated from and after the Termination Date for the
period that Executive actually remains employed by Employer at his
then current salary, and with the provisions of Section 5.2, above,
continuing to apply as well. All such amounts payable to Executive
shall be in addition to and not in lieu of the amounts payable to
Executive under Section 5.5.2, above. Upon the later to occur of an
occurrence of a Change of Control or the termination of any period
during which Executive continues to provide services as aforesaid,
Executive's employment hereunder shall terminate.
5.6 Life
Insurance. Upon the completion of the first six
(6) months under the Term, Employer shall purchase, at its sole
cost and expense, a term life insurance policy with a death benefit
of One Million Dollars ($1,000,000), with Executive as the owner
and insu r ed, if such coverage is available. Executive,
as the owner of the policy, shall designate the beneficiary of the
policy, as he may change same from time-to-time. Employer shall
keep and maintain the policy in full force and effect throughout
the entire Term. Executive agrees to permit Employer to purchase
"key man" term life insu r ance coverage (as that term
is commonly defined) on Executive for the benefit of Employer, in
the sole discretion and sole cost and expense of Employer.
5.7 Board
Participation. Executive shall serve as an
ex-officio/invitee of the Board of Directors of Oxford Media, Inc.
("Oxford's Board"), the corporate parent of Employer. Executive
shall have full right of participation in all meetings of Oxford's
Board. Executive shall have no voting rights. Oxford's Board
reserves the right to excuse Executive from any meeting in the
event Oxford's Board reasonably determines that confidentiality
dictates that Executive not participate in any such meeting, or
portion thereof.
VI
TERMINATION
6.1
Termination in Case of Death.
6.1.1.
Termination Event. Executive's
employment hereunder shall terminate immediately upon the death of
Executive, which shall be the Termination Date for this Section
6.1.
6.1.2.
Result of Termination. Upon
termination of Executive's employment pursuant to this Section 6.1,
Employer shall pay to Executive's estate, on the Termination Date,
a lump sum payment of an amount equal to (i) all accrued and unused
vacation and sick pay payable to Executive by Employer with respect
to serviced rendered by Executive to Employer through the
Termination Date; and, (ii) if the Termination Date occurs du
r ing the Extended Term, an amount equal to twelve (12)
months salary based upon the then existing salary of Executive,
payable in the same manner as salary would have been paid to
Executive had he continued to work for Employer hereunder. In
addition to the foregoing, and notwithstanding the provisions of
any other agreement to the contrary, Employer shall continue to
provide for the benefit of Executive's family the medical benefits
referred to in Section 5.1 hereof for twelve (12) months following
the Termination Date.
6.2
Termination in Case of Disability.
6.2.1.
Termination Event. If Executive
suffers a physical or mental disability which results in Executive
being unable to perform his duties hereunder for a three (3)
consecutive month period, then the Parties shall proceed as
follows: (i) the Board shall select a qualified physician; (ii)
Executive or his legal representative, if applicable, shall select
a qualified physician; (iii) those two (2) physicians shall select
a third qualified physician; (iv) the three physicians shall
examine Executive and review his physical and mental capacity. If a
majority of the three physicians determine in good faith that such
physical or mental disability renders Executive incapable of
performing his duties hereunder for a period of at least three (3)
consecutive months following the date of such physician's written
opinion, then Executive's employment shall terminate effective
three (3) weeks following the date of such physician's written
opinion, which shall be the Termination Date for this Section
6.2.
6.2.2.
Result of Termination. Upon
termination of Executive's employment pursuant to this Section 6.2,
Employer shall pay to Executive, on the Termination Date, a lump
sum payment of an amount equal to (i) all accrued and unpaid salary
and other compensation payable to Executive by Employer and all
accrued and unused vacation and sick pay payable to Executive by
Employer with respect to services rendered by Executive to Employer
through the Termination Date; and, (ii) if the Termination Date
occurs during the Extended Term, an amount equal to nine (9) months
salary based upon the then existing salary of Executive, payable in
the same manner as salary would have been paid to Executive had he
continued to work for Employer hereunder. However, such amount
shall be reduced by the amount of any payments to be paid to
Executive under any long-term disability insurance policy
maintained by Employer for the benefit of Executive. In addition to
the foregoing, and notwithstanding the provisions of any other
agreement to the contrary, Employer shall continue to provide to
Executive all other benefits referred to in Section 5.1 hereof for
nine (9) months following the Termination Date.
6.3
Termination By Executive for Cause.
6.3.1.
Termination Event. This Agreement
shall terminate upon ten (10) days prior written notice from
Executive to Employer of Executive's decision to terminate "for
cause" (as defined below), provided