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Employment Agreement [Amended]

 

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Title:

Employment Agreement [Amended]

Entities:

CompleTel Europe NV; James E. Dovey

Date:

2000

Size:

26KB total

Price:

$42

ID:

#341462

 

 

► Employment ► Employment Agreements
► Services ► Communications Services

 

 

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                         AMENDED EMPLOYMENT AGREEMENT

----------------------------


This Amended Employment Agreement (this "Agreement"), dated as of June 30,
2000, to be effective as of January 1, 2000, is entered into by and between
CABLETEL MANAGEMENT, INC., a Colorado corporation with principal offices located
at 6300 S. Syracuse Way, Suite 355, Englewood, Colorado 80111 (the "Company"),
and JAMES E. DOVEY, a resident of the State of Colorado ("Employee").

A. The Company is a wholly owned subsidiary of CompleTel LLC ("LLC"), for
which the Company provides management and consulting personnel. LLC and its
subsidiaries and affiliates, collectively, are referred to herein as
"CompleTel."

B. The Company wishes to continue to employ Employee and Employee wishes
to continue to be employed by the Company in key management positions of the
Company and CompleTel.

C. The Company and Employee, respectively, desire to modify the terms of
Employee's Employment Agreement dated May 18, 1998 (the "Original Agreement")
and to enter into this Amended Employment Agreement under the terms and
conditions contained herein.

AGREEMENT
---------

In consideration of the rights and obligations created hereunder, the
parties agree as follows:

1. Employment. This Agreement is made between the Company, as employer,
----------
and the Employee and replaces and voids any and all prior employment agreements
made between the Company and Employee. Employee's employment commenced January
1, 1998 pursuant to the Original Agreement and will continue for an indefinite
period subject to termination as specified in Section 5.

2. Title and Duties. Employee shall be employed by the Company and shall
----------------
serve as Chairman of the Board and Secretary of the Company and of LLC.
Employee also shall serve in such capacities for LLC's European subsidiaries as
LLC's boards and the managers of its European subsidiaries shall designate from
time to time. Employee shall perform, on a fulltime basis, such duties and bear
such responsibilities, as may be determined from time to time by the Board of
Managers of LLC (the "Board"), commensurate with his position and shall serve
the Company and LLC faithfully and to the best of his ability under the
direction of the Board; provided, that Employee shall be entitled to continue
his involvement in personal business and in the business and operations of
NewTel Holdings, Ltd., Jersey Cable, Ltd. and NewTel, Ltd., each a Channel
Islands company (collectively, the "NewTel Business"), it being understood such
involvement may from time to time require services on his part, but will not in
any event materially interfere with the performance of Employee's duties
hereunder.

3. Compensation.
------------

(a) Salary. For all services rendered by Employee hereunder, Employee
------
shall receive a base salary, payable semimonthly in arrears, at the annual rate
for the 1998 calendar year of $175,000. The Board shall review Employee's
salary annually at the end of each calendar year and shall provide for such
increases to Employee's base salary as the Board may determine to be appropriate
taking into account both CableTel's and Employee's performance.


{PAGE}

(b) Benefits. In addition to salary payments as provided in Section
--------
3(a), the Company shall provide Employee with the benefits of such insurance
plans, hospitalization plans, 401(k) and supplemental retirement plans and other
employee fringe benefit plans as are approved by the Board, it being understood
that such benefits shall be comparable to those customarily provided to
executive management personnel of companies in the telecommunications industry
of comparable size and value as CableTel. In addition, Employee shall be
reimbursed for the reasonable costs of his advisors with respect to the
negotiation of this Agreement. Employee shall be entitled to sick leave and
vacation in accordance with the Company's established policies applicable to its
employees generally, provided that Employee shall be entitled to a minimum of
four weeks vacation each year. Benefits to be provided by the Company under
Sections 5(d), (e) and (f) after termination of this Agreement for the periods
specified therein shall include health insurance and long term disability
insurance providing substantially the same health insurance and long term
disability insurance as was provided to Employee at the time of the termination
of this Agreement.

(c) Bonuses. At the end of each calendar year, Employee shall be
-------
eligible to receive an incentive bonus as authorized by the Board pursuant to
objectives set by the Board, in an amount up to 55% of Employee's base salary
for such year, subject to Employee's having met the performance targets
established by the Board.

4. Office Space and Expenses; Personal Residence. The Company shall
---------------------------------------------
provide Employee with appropriate office facilities in the greater Denver,
Colorado metropolitan area, executive secretarial support and other staff
personnel as may reasonably be required, in the reasonable discretion of
Employee, to accomplish the Company's business plan. The Company agrees that
Employee may continue to maintain his principal residence in the greater Denver,
Colorado metropolitan area. If Employee and the Board determine it to be
necessary in order to properly fulfill his responsibilities under this Agreement
to maintain another office in any location in which the Company is then doing
business ("Location"), the Company shall provide adequate housing for Employee
in the form of an apartment or other rental unit in the Location. The Company
shall reimburse Employee for the reasonable amount of hotel, travel,
entertainment and other expenses reasonably incurred by Employee in the
discharge of his duties hereunder, including but not limited to costs incurred
by Employee for living expenses while in, and travel to and from, any Location
on Company business; it being agreed that all international travel shall and all
hotel accommodations and other expenses shall be at levels customary for a
chairman of the board of a company in the telecommunications industry of
comparable size and value as CableTel.

5. Termination. Employee's employment hereunder shall terminate on the
-----------
following terms and conditions:

(a) Death. If Employee dies during the term of this Agreement, this
-----
Agreement shall terminate as of the date of Employee's death. The Company
shall, within 180 days after the date of Employee's death, make a cash lump sum
payment (less applicable withholding taxes) to his estate in an amount equal to
the salary (at the level payable in the year of Employee's death) that would
have been payable either for the period of time extending from the date of death
to the date 18 months after May 18, 1998, or for the six months next following
the date of death, whichever period of time is longer.

(b) Disability. If during the term of this Agreement Employee becomes
----------
disabled, the Company may terminate this agreement 30 days after receipt by
Employee or his duly appointed legal representative of Notice of Termination (as
defined below). For purposes of this Section 5(b), Employee shall be "disabled"
if he is unable effectively to perform his duties hereunder by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months. If this Agreement is terminated under this
Section 5(b), Employee shall continue to receive his base salary (at the level


DOVEY AMENDED EMPLOYMENT AGREEMENT

-2-
{PAGE}

payable in the year of termination) either for the period of time extending from
the date of termination of employment to the date 18 months after May 18, 1998,
or for the six months next following the date of termination, whichever period
of time is longer.

For purposes of this Agreement, a "Notice of Termination" means a written
notice from the Company which (a) indicates the specific termination provision
in this Agreement relied upon, (b) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Employee's employment under the provision so indicated and (c) to
the extent applicable, sets forth the date of termination.

(c) Cause. The Company may terminate this Agreement for "cause" upon
-----
receipt by Employee, or on such later date as shall be specified, of Notice of
Termination stating that termination is pursuant to this Section 5(c). For
purposes of this agreement, "cause" shall be defined as any of the following:
(i) any act by Employee, where in respect of such act Employee is ultimately
convicted or enters a plea of guilty or nolo contendere to a felony; (ii)
Employee's willful misconduct, gross negligence, perpetration of or
participation in a fraud, in each case where such acts are materially injurious
to the Company or any of its subsidiaries or any affiliate thereof, or (iii)
Employee's material breach of Sections 5 (Confidentiality) or Section 6
(Noncompetition and Nonsolicitation) of the Executive Securities Agreement dated
as of May 18, 1998 by and between LLC and Employee, in each case where
Employee's acts are materially and demonstrably injurious to the Company or an
Affiliate (as defined below). If this Agreement is terminated for cause,
Employee's rights hereunder shall cease immediately on the date of such
termination.

For purposes of this Agreement, the term "Affiliate" means a
person, firm or corporation that directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with, the
Company.

(d) Nonperformance. The Company may terminate Employee's employment
--------------
in the event of Nonperformance. The term "Nonperformance" shall mean the
--------------
occurrence of any of the following:

(i) the repeated failure or refusal in any material respect of
Employee to perform his duties hereunder or to follow, in a manner
reasonably acceptable to the Board, policies or directives established by
the Board;

(ii) the failure of the Company and its subsidiaries to achieve
financial, operating or other performance objectives formally established
by the Board in an approved business plan or operating budget (which may be
embodied in any board resolution or in any document approved by the Board
such as a business plan or budget) together with a determination by the
Board that Employee's performance or failure to perform has been a material
factor in the failure of the Company and its subsidiaries to achieve such
performance objectives; or

(iii) the failure of Employee to achieve specific, formally
adopted performance objectives established by the Board after consultation
with employee and good faith consideration by the Board of Employee's
expressed view of the objectives.

Prior to any termination of Employee's employment for Nonperformance,
the Board shall meet in formal session (but without the attendance of Employee)
upon proper notice to consider the matter of Employee's performance after which
the Board may deliver to Employee written notice (a "Nonperformance Notice")
---------------------
stating that the Board believes Nonperformance has occurred. Employee shall
have at least 15 calendar days to prepare for a meeting with the Board, at which
time Employee may


DOVEY AMENDED EMPLOYMENT AGREEMENT

-3-
{PAGE}

present any information on market and competitive conditions and any other
factors bearing upon his performance. In assessing Employee's performance, the
Board shall give due consideration to such conditions and such other factors and
shall work with Employee in good faith to establish criteria which, if satisfied
by Employee within 35 days or such longer time as may reasonably be necessary in
view of the criteria (the "Cure Period") after such meeting, will prevent the

 

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