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Employment Agreement

 

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Title:

Employment Agreement

Entities:

divine, Inc.

Date:

2001

Size:

Preview shows 6KB of 35KB total

Price:

$38

ID:

#1137124

 

 


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                                  divine, inc.


EMPLOYMENT AGREEMENT
--------------------

THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into on April 16,
2001 (the "Effective Date"), between divine, inc., a Delaware corporation (the
"Company"), and Paul Humenansky ("Executive").

WHEREAS, the Company wishes to employ Executive and Executive desires to be
employed by the Company;

NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is agreed as follows:

1. Employment of Executive.
-----------------------

As of the Effective Date, the Company hereby engages and employs Executive
in an executive capacity as President and Chief Operating Officer and Executive
hereby accepts such employment and agrees to act as an employee of the Company
in accordance with the terms of employment hereinafter specified ("Executive
Employment").

2. Term of Executive Employment.
----------------------------

The period of Executive Employment shall begin on the Effective Date and
continue until terminated as hereinafter provided (the "Employment Period").

3. Duties:
------

(a) Executive shall be employed by Company as President and Chief Operating
Officer. In such capacity, Executive shall have supervision and control over,
and responsibility for, the day-to-day active management of the business of the
Company, under the general supervision of the Chief Executive Officer, and shall
have such other powers and duties as the Chief Executive Officer and/or the
Board of Directors of the Company may from time to time prescribe; provided
that, such powers and duties are consistent with the Executive's then present
duties and with his position as the Company's senior executive officer in charge
of the day-to-day active management of the business of the Company.

(b) Nothing contained herein shall be construed so as to prohibit Executive
from performing such other or additional duties or responsibilities, and
exercising such other or additional authority in furtherance of the goals of the
Company, as the Executive and the Chief Executive Officer of the Company shall
from time to time agree upon.

(c) Executive shall devote his full business time and attention as is
necessary to appropriately and efficiently discharge his duties and
responsibilities as herein set forth. If

1

<PAGE>

Executive so discharges his duties he may engage in other business and civic
activities, in addition to those relating to the Company's business, if such
activities are not otherwise prohibited by the terms of this Agreement. The
Executive may also serve as a director of for-profit or philanthropic
organizations provided such activities do not materially interfere or conflict
with Executive's duties to the Company and its affiliates.

(d) During Executive's employment hereunder, Executive shall not be
required to relocate his principal residence identified in Exhibit A (which
Exhibit A may be modified by Executive upon notice to Company) as a result of
the Company moving its principal executive offices or the Executive's office to
an address greater than twenty (20) miles away from the Company's principal
executive offices (or the Executive's office) at the Effective Date and shall
not be required to perform services which could make the continuance of
Executive's principal residence in such location unreasonably difficult or
inconvenient for Executive except to the extent that the performance of such
services (and travel) is commensurate with Executive's duties specified
hereunder.

4. Executive Salary and Compensation:
---------------------------------

(a) Base Salary. During the Employment Period, the Company shall pay or
cause to be paid to Executive a base salary ("Base Salary") payable to Executive
on a periodic basis in accordance with the Company's then current executive
salary payment practice; provided, however, that the installments may not be
made less frequently than on a monthly basis. Executive's Base Salary shall be
$400,000 per year or such larger amount as may be agreed upon by the Executive
and the Compensation Committee of the Company's Board of Directors (the
"Committee").

Such Base Salary shall be subject to periodic review (and may be increased), but
shall not be reduced at any time without the prior written consent of Executive.

(b) Incentive Compensation. Executive shall be entitled to receive an
annual bonus as determined by the Committee for each fiscal year of the Company
during the Employment Period ("Incentive Compensation"). The Incentive
Compensation for each fiscal year shall be determined in accordance with a plan
established by the Committee, provided that if Executive meets the criteria set
forth in the plan or such other criteria as my be established or agreed to by
the Committee, such annual bonus shall be not less than $350,000. In the event
the aggregate amount which is payable to Executive as compensation for any one
calendar year shall exceed $1,000,000 then amounts payable under this Section
4(b) in excess of the amount deductible by the Company under Section 162(m) of
the Internal Revenue Code of 1986, as amended (the "Code") (or any successor
provision) shall be determined by a formula to be established by the Committee.
It is the intention of the parties hereto, that in connection with establishing

 

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