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Employment Agreement

 

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Title:

Employment Agreement

Entities:

LecStar Corp.; Michael E. Britt, Jr.

Date:

2001

Size:

Preview shows 8KB of 46KB total

Price:

$40

ID:

#342108

 

 

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                              EMPLOYMENT AGREEMENT


THIS EMPLOYMENT AGREEMENT (the "Agreement") is made as of the 15th day
of May, 2000 (the "Effective Date"), by and among EMPIRE TECHNOLOGY CORPORATION,
a Delaware corporation (the "Company"), EMPIRE TELECOM SERVICES, INC. a Georgia
corporation (the "Subsidiary), solely in its capacity as guarantor, and MICHAEL
E. BRITT, JR. (the "Employee").

WITNESSETH:

WHEREAS, the Company desires to employ Employee, and the Company and
the Employee desire to enter 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 as a Vice President
of the Company and as President and Chief Operating Officer of the Subsidiary.
In such capacities, the Employee shall have all powers, duties, and obligations
as are normally associated with such positions. The Employee shall further
perform such other duties related to the business of the Company or its
Affiliate (as defined below), 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 term of this Agreement shall be three (3) years commencing
on the date hereof; provided, however, that unless the Company gives written
notice to the Employee, or vice versa, at least six (6) months prior to the
expiration of the original term, or the expiration of any subsequent renewal
thereof, the term shall be extended for an additional year (such term, including
any renewals thereof, is referred to herein as the "Employment Term").



{PAGE} 2

3. Compensation.

(a) Base Salary. For such services, the Employee shall receive
a minimum annual base salary at the rate of $140,000.00 per year, commencing on
the Effective Date and ending December 31, 2000 and, effective January 1, 2001,
annual base salary rate shall be increased to $225,000 (the "Salary"). In
addition, the compensation committee of the Board of Directors of the Company
shall conduct an annual review to determine Employee's eligibility to receive a
raise in his Salary in each year of the Employment Term based upon both
cost-of-living adjustments and 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 Employee's new Salary. 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.

(b) Signing Bonuses. The Employee shall be entitled to a lump
sum cash payment of $20,000 upon execution of this Agreement; an additional lump
sum cash payment of $25,000 on December 31, 2000; and an additional lump sum
cash payment of $25,000 upon completion of the Company's initial public
offering.

(c) Annual Bonus. The Employee shall be entitled to an annual
bonus opportunity, based upon performance criteria mutually agreed upon by the
Company and the Employee, with a target bonus equal to fifty percent (50%) of
Salary. The maximum bonus opportunity shall be determined by the Board of
Directors of the Company from time to time. Any bonuses earned will be paid
within ninety (90) days following the close of the Company's fiscal year.

(d) Long-Term Compensation. The Employee shall be entitled to
participate in such long-term incentive compensation programs, including, but
not limited to, equity incentives, as may be developed from time to time for the
senior management of the Company and the Subsidiary. As an inducement to the
Employee entering into this Agreement, the Employee shall be granted an option
in accordance with Exhibit A, with such option being subject to the terms set
forth in Exhibits A-1 and B.

4. Benefits. The Company shall further provide Employee with all health
and life insurance coverages, sick leave and disability programs, tax-qualified
retirement plans, paid holidays and vacations, expense reimbursement policies,
moving and relocation 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. In addition, during
the term of this Agreement (including extensions thereof) the Company shall
provide the Employee:



2
{PAGE} 3

(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;

(iii) "Entity" shall mean any individual or any
corporation, limited liability company, partnership, joint
venture, association or other entity or enterprise other than

 

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