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Employment Agreement

 

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Title:

Employment Agreement

Entities:

National Auto Credit Inc /de; National Auto Credit, Inc

Date:

2003

Size:

Preview shows 7KB of 56KB total

Price:

$36

ID:

#1653259

 

 

► Employment ► Employment Agreements
► Financial ► Consumer Financial Services

 

 

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                              EMPLOYMENT AGREEMENT


EMPLOYMENT AGREEMENT (this "AGREEMENT"), effective as of April 18, 2003
(the "EFFECTIVE DATE"), among Dean Thompson ("EXECUTIVE") and OMI Communication,
Inc. ("EMPLOYER"), a Delaware corporation. Executive, Employer are hereinafter
sometimes referred to collectively as the "PARTIES" and each as a "PARTY."

WHEREAS, Executive and Employer have entered into a certain Merger
Agreement And Plan Of Reorganization (the "MERGER AGREEMENT"), dated as of April
1, 2003, by an among National Auto Credit, Inc. ("NAC"), Employer, ORA/Metro
Incorporated ("ORA") and Executive providing, inter alia, for the merger of ORA
with and into Employer, as a subsidiary of NAC;

WHEREAS, in conjunction with such merger, Executive desires to be hired and
employed by Employer to supervise and operate the businesses of Employer, and
Employer desires to hire and employ Executive to supervise and operate its
businesses; and

WHEREAS, Section 5.2 of the Merger Agreement provides that the parties
hereto will enter into this Agreement;

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:

1. EMPLOYMENT OF EXECUTIVE

Employer hereby agrees to employ Executive, and Executive hereby agrees to
be and remain in the employ of Employer, upon the terms and conditions
hereinafter set forth.

2. EMPLOYMENT PERIOD; EMPLOYMENT YEAR

2.1 Employment Period. Subject to earlier termination as provided in
Section 5 hereof, the term of Executive's employment under this Agreement shall
commence as of the date hereof and shall continue for a period (the "INITIAL
EMPLOYMENT PERIOD") ending on January 31, 2008. Notwithstanding anything
contained herein to the contrary, if the Stockholder's Note (as defined in the
Merger Agreement) has not been paid in full or otherwise discharged prior to the
expiration of the Initial Employment Period or, if the term of Executive's
employment under this Agreement shall have been extended as provided herein,
prior to the end such term, then Executive may, by written notice given to
Employer at least ninety (90), but not more than one hundred and eighty (180),
days prior to the date this Agreement would otherwise expire, elect to extend
the term of his employment hereunder until (a) the first anniversary of the date
the Initial Employment Period would expire or, if the term of Executive's
employment under this Agreement shall have been extended as provided herein, the
first anniversary of the date such term would have otherwise expired or (b) such
earlier date as may be specified in such notice; provided, however, that no
extension shall be effective to extend Executive's employment hereunder beyond
the date the Stockholder's Note is paid in full or otherwise discharged. As used
herein, "EMPLOYMENT PERIOD" means the Initial Employment Period plus any
extension of the term of Executive's employment under this Agreement that has
been made as provided above.


<PAGE>

2.2 Employment Year. As used herein, an "EMPLOYMENT YEAR" means the period
commencing on the date hereof and ending on January 31, 2004 and each successive
twelve month period commencing on February 1st and ending on the following
January 31st.

3. DUTIES AND RESPONSIBILITIES; PLACE OF PERFORMANCE

3.1 Duties and Responsibilities. During the Employment Period, Executive
shall have the titles of, and shall serve as, President of Employer. During the
Employment Period, Executive shall devote all of his business time to Employer
and its subsidiaries (if any) and to his duties and responsibilities hereunder
and shall perform such duties and obligations (not inconsistent with his
positions as President of Employer) as may be assigned to him from time to time
by the Employer's Board of Directors (such Board of Directors, the "BOARD") or
by the Chairman or Chief Executive Officer of NAC. During the Employment Period,
Executive shall (subject to the next following sentence) have authority and
responsibility to manage all day-to-day business and operations of Employer and
its subsidiaries (if any), including the hiring of all personnel, but all
decisions with respect to the firing or other termination of personnel shall be
made jointly by Executive and by the Board or the Chairman or Chief Executive
Officer of NAC, with neither side to unreasonably withhold or delay his or its
consent. Notwithstanding anything contained herein to the contrary, Executive
shall not have authority or responsibility, without the consent or approval of
the Board or the Chairman or Chief Executive Officer of NAC, to cause Employer
(or any subsidiary of Employer) to take (or allow or permit Employer (or any
subsidiary of Employer) to take), and Executive shall not cause Employer (or any
subsidiary of Employer) to take (or allow or permit Employer (or any subsidiary
of Employer) to take), any of the following actions: (a) terminate or cease any
business or line of business of Employer (or such subsidiary) if such business
or line of business has generated revenues of at least fifty thousand dollars
($50,000) during the preceding Fiscal Year (as hereinafter defined); (b)
commence any new business or line of business or acquire any new business or
line of business from any Person (as hereinafter defined); (c) grant any
security interest in, or lien on, any of the assets or property of Employer (or
such subsidiary); (d) sell, transfer or otherwise dispose of any of the assets
or property of Employer (or such subsidiary) other than in the ordinary course
of its business consistent with past practices (which shall, to the extent
applicable, include the past practices of the ORA); (e) loan or advance any
funds (exclusive of the advancing of funds for travel and other business
expenses in accordance with Employer's Policies And Practices (as hereinafter
defined)); (f) guaranty or otherwise act as a surety with respect to any
obligations of any other Person; (g) borrow any funds or money; (h) make any
expenditure (other than a capital expenditure) in excess of one hundred thousand
dollars ($100,000); (i) make any capital expenditure (including, without
limitation, pursuant to any capitalized lease) in excess of fifty thousand
dollars ($50,000) (with it being agreed, however, that consent to capital

 

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