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Employment Agreement

 

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Title:

Employment Agreement

Entities:

AboveNet, Inc.

Date:

2000

Size:

Preview shows 6KB of 31KB total

Price:

$45

ID:

#340514

 

 

► Employment ► Employment Agreements
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                              EMPLOYMENT AGREEMENT


This EMPLOYMENT AGREEMENT (the "Agreement"), dated as of October 9, 2000, is
entered into by and between Metromedia Fiber Network, Inc. ("MFN") and
SiteSmith, Inc., a Delaware corporation ("Company"), on the one hand, and Mark
F. Spagnolo ("Executive"), on the other hand.

WHEREAS, MFN and Company desire that Executive be employed by Company as its
Chief Executive Officer, and Executive desires to be so employed by Company, on
the terms and conditions herein provided.

NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements of the parties herein contained, the parties hereto
agree as follows:

1. Employment.

(a) Title; Reporting. During the Term (as hereinafter defined), Company
shall employ Executive, and Executive shall render services to Company as
Chief Executive Officer of Company and shall report to the Board of
Directors of the Company and to the President and Chief Operating Officer of
MFN. Executive will also be a member of the Board of Directors of Company.

(b) Duties. Executive shall have such duties as are consistent with the
position of Chief Executive Officer.

(c) No Other Employment. Executive shall devote his full and exclusive
business time and best efforts to the performance of his duties under this
Employment Agreement and shall perform them faithfully, diligently and
competently. However, the parties understand and agree that Executive
currently serves on the Board of Directors of Cobalt Networks and Ztango and
that he may continue to do so.

(d) No Conflict. Executive represents and warrants that neither the
execution by him of this Agreement nor the performance by him of his duties
and obligations hereunder will conflict with or violate any agreement to
which he is a party or by which he is bound.

(e) Commencement Date. This Agreement amends and supercedes the earlier
Employment Agreement between Executive and Company, PROVIDED, HOWEVER, that
this Agreement shall become effective as of the effective date of the merger
between Aqueduct Acquisition Corp., a wholly-owned subsidiary of MFN
("Merger Sub"), and the Company (the "Commencement Date"). The earlier
Employment Agreement will continue in effect until the effective date of the
merger.

(f) Place of Employment. Executive's office will be in Dallas, Texas;
PROVIDED, HOWEVER, that Executive shall travel for business purposes or
perform services at the Company's other locations as required from time to
time.

2. Term of Employment. Executive agrees to work for, and remain employed
by, the Company for a period of three years, that is, until September 30, 2003.
Until this date, Executive may only resign his employment for Good Cause, as
defined herein. The Company may terminate Executive's employment at any time for
any reason, with or without cause. If Executive's employment continues after
three years, then Executive's employment with the Company shall at all times
thereafter be "at will," which means that either the Executive or the Company
may terminate the Executive's employment at any time for any or no reason, with
or Without Cause (as defined below) by giving notice in writing. Executive's
employment shall terminate automatically in the event of his death. The term of
Executive's employment under this Agreement shall commence on the date hereof
and continue until terminated as provided for herewith ("Term").

D-1-1
{PAGE}
3. Compensation.

(a) Base Salary. Company shall pay to Executive throughout the Term an
annual salary (the "Base Salary") of not less than $350,000 per year,
payable in accordance with the Company's customary policies. The Base Salary
will be reviewed at least annually by the Company's Board of Directors and,
if appropriate, it will be increased.

(b) Initial Bonus. Provided that Executive is employed by the Company on
June 30, 2001, the Company will pay him a bonus of $350,000 (the "Initial
Bonus"), subject to applicable tax withholding, on or before July 31, 2001.

(c) Subsequent Bonuses. For each one year period after July 1, 2001,
Executive shall be eligible to earn an annual discretionary incentive bonus
equal to at least 100% of his Base Salary ("Target Bonus"). The Target Bonus
shall be earned based on achievement of objectives to be identified by the
Board of Directors. The Board will set objectives, after consultation with
Executive, within sixty days of the start of each twelve-month period.
Target Bonuses payable under this Subsection 3(c) shall be payable in
accordance with the Company's normal practices and policies no later than
30 days after the end of each annual period.

4. Equity.

(a) Option Grant. MFN will grant Executive an option to purchase 500,000
shares of MFN class A common stock, par value $.01 per share (the "Option
Shares"), subject to the terms of the Metromedia Fiber Network, Inc. 2000
Stock Option Plan and execution of the standard form of stock option
agreement thereunder (except as necessarily modified to conform to the
provisions of this Agreement). This Option grant shall be granted
concurrently with or as soon as reasonably practicable after the
Commencement Date. The per share exercise price of the Option Shares shall
be equal to the per share fair market value of the class A common stock on
the date of grant. The Option Shares shall become exercisable as to 25% of
the Option Shares upon the one year anniversary of the Commencement Date and
as to the remaining Option Shares shall vest ratably over each of the next

 

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