Exhibit
10.12
POKERTEK INC.
KEY EMPLOYEE
AGREEMENT
for
Mr. Mark Roberson
This Key Employee
Agreement (“
Agreement ”) is entered into as of the 16th day
of July, 2009, by and between Mark Roberson (“
Executive ”) and PokerTek, inc. (the “
Company ”).
Executive has been employed by the Company since
October 18, 2007 on substantially the terms set forth in this
Agreement. Executive and the Company desire to execute and enter
into this Agreement setting forth the terms and conditions of
Executive’s employment.
Accordingly, in consideration of the mutual
promises and covenants contained herein, the parties agree to the
following:
1. Employment
by the Company.
1.1
Effective Date. The effective date of this Agreement shall
be July 1, 2009. Unless terminated sooner pursuant to Section 6,
this Agreement shall end two (2) years from the effective
date.
1.2
Position. Subject to terms set forth herein, the Company
agrees to employ Executive in the position of Acting Chief
Executive Officer, Chief Financial Officer and Treasurer, and
Executive hereby accepts such employment. During the term of his
employment with the Company, Executive will devote his best efforts
to the business of the Company.
1.3
Duties. Executive shall serve in an executive capacity and
shall perform such duties as are customarily associated with his
then current title and as assigned to the Executive by the
Company’s Board of Directors.
1.4
Other Employment Policies. The employment relationship
between the parties shall also be governed by the general
employment policies and practices of the Company, including those
relating to protection of confidential information and assignment
of inventions, except that when the terms of this Agreement differ
from or are in conflict with the Company’s general employment
policies or practices, this Agreement shall control.
(a) Executive
shall receive for services an annualized base salary of $160,000
per annum (the “ Base Salary ”), subject
to standard federal and state withholding requirements, payable in
accordance with the Company’s standard payroll
practices.
(b) The
Company may reduce the amount of the Base Salary in connection with
a general reduction of salary applicable to all employees of the
Company that has been approved by the Company’s Board of
Directors (“ General Reduction ”);
provided , however , that (i) in no case shall the
Base Salary be reduced in a single General Reduction or series of
General Reductions by more than an aggregate of twenty percent
(20%) of the Base Salary; (ii) in no case shall the Base Salary be
reduced for more than six months; and (iii) any and all severance
payments made to Executive in accordance with Sections 6 shall be
based on the Executive’s original Base Salary without giving
effect to any General Reductions.
(c) Executive
has previously received a stock grant of 75,000 options at Fair
Market Value determined by the closing price on December 31, 2007,
which vest 12.5% every six months. In the event Executive’s
employment is terminated by the Company for any reason except
Cause, all stock options granted to Executive through the date of
termination, will vest immediately and the Executive will have one
year from date of termination to exercise his options, provided
that Executive executes the Release (as defined below).
(d) Executive
has previously received a stock grant of 40,000 options at Fair
Market Value determined by the closing price on March 31, 2008,
which vest 12.5% every six months. In the event Executive’s
employment is terminated by the Company for any reason except
Cause, all stock options granted to Executive through the date of
termination, will vest immediately and the Executive will have one
year from date of termination to exercise his options, provided
that Executive executes the Release (as defined below).
(e) Executive
will be provided a stock grant of 137,500 options as soon as
practicable upon execution of this agreement at Fair Market Value
determined by the closing price on the date of grant, which shall
vest semi-annually over a three year period. In the event
Executive’s employment is terminated by the Company for any
reason except Cause, all stock options granted to Executive through
the date of termination, will vest immediately and the Executive
will have one year from date of termination to exercise his
options, provided that Executive executes the Release (as defined
below). In the event the Executive is not appointed as
Chief Executive Officer by May 29, 2010 (12 months from
Executive’s appointment as Acting Chief Executive Officer),
stock options granted to Executive will vest
immediately.
2.2
Company Benefits. Executive shall be entitled to all rights
and benefits for which he is eligible under the terms and
conditions of the standard Company benefits and compensation
practices which may be in effect from time to time and provided by
the Company to its senior officers generally. Executive shall be
entitled to all holidays provided by the Company to its senior
officers generally and three weeks (3) vacation time provided
by the Company to its senior officers generally. For purposes of
this Section, “provided by the Company to its senior officers
generally” shall mean benefits provided as a policy to all or
most members of senior management and shall not include a specific
benefit negotiated by one or more executives as an inducement to
join the Company in a senior officer position.
2.3
Expense Reimbursement . The Company will reimburse Executive
for reasonable business expenses in accordance with the
Company’s standard reimbursement policy.
3. Proprietary
Information, Inventions, and Non-Competition
Obligations.
3.1
Agreement. Executive agrees to execute and abide by the
Proprietary Information, Inventions, Non-Competition, and
Non-Solicitation Agreement attached hereto as Exhibit A (the
“ Proprietary Information Agreement
”).
4.1
Other Employment/Enterprise. Except with the prior written
consent of the Company’s Board of Directors, Executive will
not, while employed by the Company, undertake or engage in any
other employment, occupation or business enterprise, other than
ones in which Executive is a passive investor. Executive may engage
in civic and not-for-profit activities so long as such activities
do not materially interfere with the performance of his duties
hereunder.
4.2
Conflicting Interests. Except as permitted by
Section 4.3, while employed by the Company, Executive agrees
not to acquire, assume or participate in, directly or indirectly,
any position, investment or interest known by him to be adverse or
antagonistic to the Company, its business or prospects, financial
or otherwise.
4.3
Competing Enterprises. While employed by the Company, except
on behalf of the Company, Executive will not directly or
indirectly, whether as an employee, officer, director, stockholder,
partner, proprietor, associate, representative, consultant, or in
any capacity whatsoever engage in, become financially interested
in, be employed by or have any business connection with any other
person, corporation, firm, partnership or other entity whatsoever
which compete directly with the Company, throughout the world, in
any line of business engaged in (or planned to be engaged in) by
the Company; provided, however, that anything above to the contrary
notwithstanding, he may own, as a passive investor, securities of
any public competitor corporation, so long as his direct holdings
in any one such corporation shall not in the aggregate constitute
more than 1% of the voting stock of such corporation.
5.1
No Conflict with Existing Obligations. Executive represents
that his performance of all the terms of this Agreement and as an
employee of the Company does not and will not breach any agreement
or obligation of any kind made prior to his employment by the
Company, including agreements or obligations he may have with prior
employers or entities for which he has provided services. Executive
has not entered into, and agrees he will not enter into, any
agreement or obligation either written or oral in conflict
herewith.
5.2
No Disclosure of Confidential Information. If, in spite of
the second sentence of Section 5.1, Executive should find that
confidential information belonging to any former employer might be
usable in connection with the Company’s business, Executive
will not intentionally disclose to the Company or use on behalf of
the Company any confidential information belonging to any of
Executive’s former employers (except in accordance with
agreements between the Company and any such former employer); but
during Executive’s employment by the Company he will use in
the performance of his duties all information which is generally
known and used by persons with training and experience comparable
to his own and all information which is common knowledge in the
industry or otherwise legally in the public domain.
6.
Termination Of
Employment . The parties acknowledge that
Executive’s employment with the Company is at-will. The
provisions of Sections 6.1 through 6.7 govern the amount of
compensation, if any, to be provided to Executive upon termination
of employment and do not alter this at-will status.
6.1
Termination without Cause. The Company shall have the right
to terminate Executive’s employment with the Company at any
time without Cause by giving notice as described in Section 6.7 of
this Agreement.
(a) In
the event Executive’s employment is terminated by the Company
without Cause for a reason other than death, disability or
cessation of the Company’s business pursuant to Section 6.6
below, the Company shall continue to pay Executive his
then-existing base salary, less applicable withholding and
deductions, and continue to provide medical and dental coverage or
pay Cobra premiums for twelve (12) months.
(b) In
the event the Executive is terminated within one year following a
Change in Control of the Company, Executive will receive twelve
(12) months of the base salary along with twelve (12) months of
medical and dental coverage or Cobra premium payments.
(c)
“Change of Control” shall be deemed to
have occurred on the earliest of the following dates:
(i) The
date any entity or person shall have become the beneficial owner
of, or shall have obtained voting control over, fifty percent (50%)
or more of the outstanding Common Stock of the
Company;
(ii) The
date the shareholders of the Company approve a definitive agreement
(X) to merge or consolidate the Company wit