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Document Preview Employment Agreement |
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Title: |
Employment Agreement |
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Entities: |
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Date: |
2001 |
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Size: |
Preview shows 8KB of 51KB total |
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Price: |
$34 |
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ID: |
#1182292 |
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EMPLOYMENT AGREEMENT
This Employment Agreement (the "AGREEMENT"), effective as of December __, 2000,
is made and entered by and between JOHN DUBOIS (the "EXECUTIVE") and NX
NETWORKS, INC., a Delaware corporation (the "COMPANY").
W I T N E S S E T H:
WHEREAS, the Company desires to engage the Executive to provide services
pursuant to the terms of this Agreement; and
WHEREAS, the Executive desires to provide such services to the Company pursuant
to the terms of this Agreement;
NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below, the parties hereto agree as follows:
1. TERM OF EMPLOYMENT
The term of the Executive's employment under this Agreement shall
commence on January 3rd, 2001 and end on the third anniversary of such date (the
"Term of Employment"). If the Company or the Executive does not deliver to the
other party at least 60 days prior to the end of the three year term, written
notice that the Term of Employment shall end on January 3, 2004, the Term of
Employment shall automatically continue for an additional one-year period. At
the end of such one year period, the Term of Employment shall automatically
continue for successive one year terms unless either party delivers at least 60
days prior written notice that the Term of Employment shall end at the end of
such one-year renewal period.
2. DUTIES
(a) During the Term of Employment, the Executive shall serve as the
Chief Executive Officer and, as provided in Section 2(b) below, a Director of
the Company with such authority and duties as are generally associated with such
position and as may be assigned to him from time to time by the Board of
Directors of the Company that are consistent with such authority and duties. The
Executive shall report to the Chairman of the Board of Directors of the Company,
or someone or some body within the Board if there is no Chairman or if the
Executive becomes the Chairman.
(b) During the Term of Employment and except as provided in Section
2(c), the Executive shall devote his full business time and best efforts to the
business and affairs of the Company. The Executive agrees to continue to serve
during the Term of Employment as a Director and a member of any committee of the
Board of Directors of the Company that the Board may designate. The Company
agrees to use its commercially reasonable best efforts to cause the Executive to
be elected and continued in office throughout the Term of Employment as a member
of the Board of Directors of the Company and shall include him in the management
slate for election as a Director of the Company at every stockholders' meeting
of the Company at which his term as a Director would otherwise expire.
-1-
<PAGE>
(c) Anything herein to the contrary notwithstanding, nothing in this
Agreement shall preclude the Executive from (i) serving on the boards of
directors of other corporations or the boards of a reasonable number of trade
associations and/or charitable organizations, in each case subject to the prior
approval of the Board of Directors of the Company (not to be unreasonably
withheld), (ii) engaging in charitable activities and community affairs and
(iii) managing his personal investments and affairs, provided that such
activities do not interfere with the proper performance of his duties and
responsibilities under this Agreement. The Company agrees that the Executive may
continue to serve in all board positions disclosed to the Company prior to the
date of this Agreement.
3. NO CONFLICT OF INTEREST
The parties certify that the Executive has advised the Company of his
professional and business relationship with Keir Kleinknecht. The business
relationship is that the Executive was a member of the Board of Advisors for
E-Goo Venture Fund, of which Mr. Kleinknecht was a managing partner. That
business relationship is expected to continue in some form. The Company
acknowledges that this relationship does not create a conflict of interest for
the Executive or diminish in any respect the Executive's capacity to enter this
Agreement or to perform the job and duties described in this Agreement.
4. COMPENSATION AND RELATED MATTERS
(a) SALARY. During the Term of Employment, the Executive shall receive
a base salary (the "Base Salary") at the rate of $260,000 per annum. Such Base
Salary shall be payable semi-monthly in accordance with the Company's policies
in effect from time to time. The Board of Directors from time to time may
increase, but not decrease, the Base Salary.
(b) BONUS. The Executive shall be eligible for a quarterly bonus in
such amount as the Board of Directors may designate. Payment of any annual bonus
shall be made at the same time that other senior-level executives receive their
bonus but in no event later than fifteen days after the close of the period to
which such bonus relates.
(c) STOCK OPTIONS. To induce the Executive to enter into this
Agreement, the Executive is hereby granted an option (the "Stock Option") by the
Company to purchase shares of common stock, par value $0.05 per share, of the
Company (the "Common Stock"). The Stock Option shall be memorialized in a
separate stock option agreement, dated the date hereof, between the Company and
the Executive. The Stock Options will be in two tranches.
The first tranche of the Stock Option will be for 2,000,000 shares of Common
Stock, and will have an exercise price per share equal to the closing market
price per share of the Common Stock on the date of this Agreement. This tranche
of the Stock Option shall vest over time as follows and be subject to earlier
vesting as described below.
Time vesting:
500,000 shares subject to the Stock Option shall vest on January 3, 2001, and
250,000 shares subject to the Stock Option shall vest thereafter on each
six-month anniversary of such date.
-2-
<PAGE>
Accelerated vesting of the number of shares indicated below, or such lesser
amount as remains unvested at the time of the acceleration event, for any
one-year period will occur as follows:
NO. SHARES VESTING EVENT
250,000 Common Stock trades at $5/share for 10 consecutive trading days
250,000 Common Stock trades at $8/share for 10 consecutive trading days
250,000 Common Stock trades at $12/share for 10 consecutive trading days
The price points designated above refer to the last reported sales price for the
trading day.
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