Exhibit 10.1
Employment Agreement by and between Xxxx Xxxxx
and the Company dated June 1, 1995.
EMPLOYMENT AGREEMENT
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This EMPLOYMENT AGREEMENT is by and between GENERAL BUSINESS SERVICES, INC.,
a Texas corporation with its principal place of business located at 0000-0000
Xxxxx Xxxxxxxxxx Xxxxx Xxxxx, Xxxx, Xxxxx 00000 ("EMPLOYER") and XXXX XXXXX,
individually, having a residence address of 0000 X.X. 00xx Xxxxxx, Xxxxxxxx
Xxxx, Xxxxxxxx 00000 ("EMPLOYEE"). EMPLOYER and EMPLOYEE hereby agree as
follows:
DUTIES AND CONDITIONS
EMPLOYEE is hereby employed as President beginning June 1, 1995. EMPLOYEE
shall report directly to Xxxxxx X. Xxxxxxx, President and Chief Executive
Officer of the Xxxxx Group, Inc., EMPLOYER's parent. EMPLOYEE agrees to devote
such time, knowledge skill and attention necessary to adequately perform in
the position of President and protect the business interests of EMPLOYER.
EMPLOYER specifically acknowledges that EMPLOYEE will be spending time in
winding-up his involvement with his GBS franchise business practice in Oklahoma
City, Oklahoma and EMPLOYEE is currently a 1/3 owner in a business venture known
as Infinity Sportswear, Inc., which will require time and attention from
EMPLOYEE. EMPLOYEE'S principal duties shall be as directed by Xx. Xxxxxxx.
EMPLOYEE agrees to perform such other additional duties as may be reasonably
assigned to EMPLOYEE. It is understood that EMPLOYEE shall work only in those
areas assigned during such periods of time as designated by EMPLOYER.
COMPENSATION
EMPLOYER shall pay EMPLOYEE a salary of $200,000.00 per year for the
services contemplated hereunder, payable in accordance with the EMPLOYER's usual
payroll period.
EMPLOYER further agrees EMPLOYEE shall receive an annual bonus, payable at
the rate of $4,166.67 per month, with quarterly adjustments. The annual bonus
shall be equal to the greater of $50,000 or five percent (5%) of EMPLOYER's
annual net income. If the quarterly net income figures indicate that EMPLOYEE is
entitled to a bonus exceeding the amount already paid, EMPLOYEE shall receive
payment for the quarterly adjusted amount in the next monthly payment. If the
quarterly net income figures indicate that EMPLOYEE has received more than 5% of
EMPLOYER's net income, EMPLOYEE shall not be expected to return any portion of
the monthly payments, it being the intent of EMPLOYER and EMPLOYEE to guarantee
EMPLOYEE a bonus of $50,000 per year but not to limit the bonus to $50,000 per
year. EMPLOYER's net income will be determined from the internal financial
statement of EMPLOYER as regularly kept, adjusted by excluding any extraordinary
items. In the event of a dispute as to adjustments, the decision of EMPLOYER's
Chief Financial Officer shall be final.
EMPLOYMENT AGREEMENT -- PAGE 1
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EMPLOYER further agrees to reimburse EMPLOYEE for actual moving expenses, to
be paid on July 1, 1995 provided EMPLOYEE has provided with any documentation
required by the Chief Financial Officer to support such payment.
BENEFITS
EMPLOYEE shall be provided with employee benefits and programs to the same
extent and in the same manner as those benefits and programs are available to
the other executive employees of EMPLOYER's parent. In addition, beginning July
1, 1995, EMPLOYER agrees to pay the full monthly premium for EMPLOYEE's choice
of health insurance coverage for EMPLOYEE's family, and EMPLOYER agrees to being
paying the premiums for disability insurance and life insurance coverage which
EMPLOYEE already has in place, as shown on the attached Exhibit 1. EMPLOYEE is
entitled to four (4) weeks paid vacation per year, which EMPLOYEE may use for
personal business. EMPLOYEE agrees to schedule vacation at a time which is
mutually convenient for EMPLOYER and EMPLOYEE to the extent possible.
TERM
The term of this Agreement shall be sixty (60) months beginning with the
effective date of this Agreement stated above, being July 1, 1995. If, after
the initial term of the Agreement has expired, the parties continue to do
business together as if this Agreement were still in effect, the practice
constitute a renewal of the Agreement until one of the parties notifies the
other, in writing, of its wish to terminate this Agreement.
TERMINATION
In the event of a material adverse breach or neglect of duties by EMPLOYEE,
EMPLOYER may, at EMPLOYER'S option, terminate this Agreement by giving immediate
notice in writing without prejudice to any other remedy to which EMPLOYER may be
entitled at law, in equity, or under the terms of this Agreement. A material
adverse breach of this Agreement includes but is not limited to: (1) EMPLOYEE's
material violation of the policies and rules of EMPLOYER; (2) an act of fraud
committed by EMPLOYEE; (3) nonperformance of EMPLOYEE's duties; or (4) the
occurrence of a material conflict of interest between EMPLOYEE and EMPLOYER.
Notwithstanding the foregoing, EMPLOYER agrees to give EMPLOYEE notice of such
breach and a reasonable period of time in which to cure such breach if the
breach is capable of cure.
STOCK OPTIONS
EMPLOYEE is entitled to stock options in accordance with a separate Stock
Option Incentive Agreement to be entered contemporaneously herewith.
EMPLOYMENT AGREEMENT -- PAGE 2
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INTELLECTUAL PROPERTY,
TRADE SECRETS AND CONFIDENTIAL INFORMATION
EMPLOYEE acknowledges the proprietary right of EMPLOYER in the service
marks, trademarks and trade names owned by EMPLOYER (either registered or
applied for) and the service marks heretofore used by EMPLOYER to identify its
services. During the term of employment with EMPLOYER, EMPLOYEE will or may have
access to and become familiar with trade secrets of EMPLOYER and trade secrets
licensed to EMPLOYER including, but not limited to, patents, formulas,
procedures, processes, patterns, contracts, methods, secret inventions,
presentations, scripts and policies, and EMPLOYEE shall not disclose, or cause
to be disclosed, the aforementioned trade secrets to any third party, nor shall
EMPLOYEE use any such trade secrets for EMPLOYEE'S own benefit or for the
benefit of any third party either related or unrelated, during the term of this
Agreement or any time after termination of this Agreement. EMPLOYEE further
agrees that EMPLOYEE will not use for EMPLOYEE's own benefit or disclose to any
person confidential information of EMPLOYER of any kind or character learned
while acting as EMPLOYEE for EMPLOYER, without the prior written consent of
EMPLOYER.
COVENANTS
The covenants on the part of EMPLOYEE shall be construed as an agreement
independent of any other provision of this Agreement; and the existence of any
claim or cause of action of EMPLOYEE against EMPLOYER, whether predicated on
this Agreement or otherwise, shall not constitute a defense to the enforcement
by EMPLOYER of the covenants contained herein. EMPLOYEE agrees that all
covenants made by EMPLOYEE to EMPLOYER herein shall survive the termination of
EMPLOYEE'S agreement and be enforceable against EMPLOYEE by specific
performance, restraining orders or injunctions.
PREVIOUS AGREEMENTS
This Agreement supersedes all prior such agreements and represents the
entire agreement by and between EMPLOYER and EMPLOYEE except as otherwise
provided in this Agreement. No other agreement either written or oral with
respect to the employment of EMPLOYEE by EMPLOYER is binding upon the parties
hereto. This Agreement may not be changed except by written amendment duly
executed by both parties.
GOVERNING LAW
This Agreement shall be subject to and governed by the laws of the State of
Texas. Any and all obligations or payments are due and payable in Waco, McLennan
County, Texas.
EMPLOYMENT AGREEMENT -- PAGE 3
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PERSONAL SERVICES CONTRACT
This is a personal services contract and EMPLOYEE shall have no right to
transfer or assign EMPLOYEE's interest in this Agreement without the prior
written consent of EMPLOYER. This contract shall terminate automatically upon
the death of EMPLOYEE.
WAIVER AND DELAY
The failure or delay in the enforcement of the rights detailed in this
Agreement by EMPLOYER shall not constitute a waiver of those rights or be
considered as a basis for estoppel. EMPLOYER may exercise its rights under this
Agreement despite the delay or failure to enforce the rights.
GENERAL AND ADMINISTRATIVE PROVISIONS
In the unlikely event that a dispute occurs or an action in law or equity
arises out of the operation, construction or interpretation of this Agreement,
the prevailing party shall bear the expense of attorney's fees and costs
incurred by the other party in the action.
If any provision of this Agreement shall, for any reason, be held violative
of any applicable law, and so much of the Agreement is held to be unenforceable,
then the invalidity of such a specific provision in this Agreement shall not be
held to invalidate any other provisions in this Agreement, which other
provisions shall remain in full force and effect unless removal of the invalid
provisions destroys the legitimate purposes of this Agreement, in which event
this Agreement shall be cancelled.
SIGNED May 26, 1995 but EFFECTIVE June 1, 1995.
EMPLOYER:
GENERAL BUSINESS SERVICES, INC.
BY: /s/ Xxxxxx X. Xxxxxxx
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Xxxxxx X. Xxxxxxx, CEO
EMPLOYEE:
/s/ Xxxx Xxxxx
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Xxxx Xxxxx
EMPLOYMENT AGREEMENT -- PAGE 4
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