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Employment Agreement

 

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Title:

Employment Agreement

Entities:

LecStar Corp.; Paul, Hastings, Janofsky & Walker; William S. Woulfin

Date:

2001

Size:

Preview shows 7KB of 39KB total

Price:

$38

ID:

#342107

 

 

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                              EMPLOYMENT AGREEMENT




THIS EMPLOYMENT AGREEMENT (the "Agreement") is made as of the 22nd day
of December, 1999 (the "Effective Date"), between EMPIRE TECHNOLOGY CORPORATION,
a Delaware corporation (the "Company") and WILLIAM S. WOULFIN (the "Employee").

W I T N E S S E T H:
- - - - - - - - - -

WHEREAS, Employee has been an at will senior executive of the Company
since its inception;

WHEREAS, the Company and the Employee desire to entire into an
employment agreement to establish the rights and obligations of the Employee and
the Company in such employment relationship;

WHEREAS, the terms of this Agreement have been approved by the Board of
Directors of the Company;

NOW, THEREFORE, and in consideration of the mutual covenants herein
contained, the Company and the Employee hereby mutually agree as follows:

1. Employment and Duties. The Company hereby employs the Employee, and
the Employee hereby accepts employment with the Company upon the terms and
conditions hereinafter set forth. The Employee shall serve the Company as its
Chief Executive Officer. In such capacity, the Employee shall have all powers,
duties, and obligations as are normally associated with such position. The
Employee shall further perform such other duties related to the business of the
Company, including travel, as may from time to time be reasonably requested of
him by the Company's Board of Directors. The Employee shall devote all of his
skills, time, and attention solely and exclusively to said position and in
furtherance of the business and interests of the Company except for:

(a) time spent in managing his personal, financial and legal affairs
and serving on corporate, civic or charitable boards or committees, in
each case only if and to the extent not substantially interfering with
the performance of such responsibilities, and

(b) periods of vacation to which he is entitled.

2. Term of Employment. Unless otherwise terminated in accordance with
the terms hereof, the initial term of this Agreement shall be five (5) years
commencing on December 22, 1999, the "Effective Date", provided, however, that
after the expiration of such initial five (5) year term, and unless terminated
in writing by Company or Employee prior to its initial or subsequent date of
expiration, this Agreement shall automatically renew for additional two (2) year
terms (such initial and subsequent terms, if any, to be referred to as the
"Employment Term").


{PAGE} 2

3. Base Salary. For such services, the Employee shall receive a minimum
annual base salary (the "Salary") of $150,000.00 per year, commencing on the
Effective Date and continuing throughout the Employment Term. The Salary shall
be payable in equal installments, no less frequently than semi-monthly, in
accordance with the Company's regular payroll practices. The Salary shall be
prorated on a daily basis for the years or months, as the case may be, in which
Employee commences or terminates his employment relationship hereunder. Once the
business has been properly funded in the reasonable judgment of the Board of
Directors, the Salary shall be increased to an amount commensurate with senior
management of comparable telecommunication companies. In addition, the
compensation committee of the Board of Directors shall conduct an annual review
to determine Employee's eligibility to receive a raise in his Salary in each
year of the Employment Term together with stock options and bonuses based upon
the performance of the Company during the annual period. In the event the Salary
is increased, the amount of the prior Salary, together with any increase(s),
shall be the Employee's new Salary.

4. Benefits. The Company shall further provide Employee with all health
and life insurance coverages, sick leave and disability programs, tax-qualified
retirement plans, stock option policies, perquisites, and such other fringe
benefits of employment as the Company may provide from time to time to actively
employed senior executives of the Company who are similarly situated.
Notwithstanding the preceding provisions of this Section 4, during the term of
this Agreement (including extensions thereof) the Company shall provide the
Employee;

(a) reimbursement for all reasonable expenses incurred by the
Employee in connection with the conduct of the Company's business on
presentation of reasonable and appropriate receipts and in accordance
with the Company's regular reimbursement policy applicable to senior
executives;

(b) an individual disability insurance policy, at the Company's
expense, in addition to the long-term disability insurance which
replaces at least 60% of the Employee's monthly Salary; and

(c) a minimum of 4 weeks of paid vacation per year.

5. Covenants of Employee.

(a) The terms below shall have the following meanings:

(i) "Affiliate" shall mean any individual or any corporation,
limited liability company, partnership, joint venture, association
or other entity or enterprise that directly or indirectly controls,
is controlled by, or is under common control with, the indicated
person or entity;

(ii) "Competitive Services" shall mean the provision of
competitive local exchange, data, long distance, and Internet
communications services as a carrier to end users, which are the
services provided by the Company as of the date of execution hereof;


2
{PAGE} 3

(iii) "Entity" shall mean any individual or any corporation,
limited liability company, partnership, joint venture, association
or other entity or enterprise other than the Company or its
respective Affiliates;

(iv) "Principal" or "Representative" shall mean a principal,
owner, partner, shareholder, joint venturer, investor, trustee,

 

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