FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
THIS FIRST AMENDMENT (the "First Amendment") to the Employment Agreement
dated as of the 1st day of October, 1998, is entered into as of the ___ day of
______, 1999 by and between Tech Laboratories, Inc., with its principal place of
business at 000 Xxxxxxx Xxxxxx, Xxxxx Xxxxxxx, XX (the "Company"), and Xxxxxxx
X. Xxxxxxxx, residing at 00 Xxxxxxx Xxxxx Xxxxx, Xxxxxx, XX (the "Executive").
The Company and the Executive are individually referred to as a "Party" and
collectively referred to as the "Parties."
WHEREAS, the undersigned are the Parties to an Employment Agreement dated
as of October 1, 1998 (the "Employment Agreement"); and
WHEREAS, under Paragraph 16 of the Employment Agreement the Parties may
amend the Employment Agreement in a writing signed by the Parties;
NOW, THEREFORE, the Parties hereby amend the Employment Agreement as
follows:
FIRST: Paragraph 1 of said Employment Agreement is hereby deleted in its
entirety and the following new paragraph is hereby inserted in lieu thereof:
Subject to the terms and conditions hereinafter set forth, the Company
hereby employs the Executive, and the Executive hereby agrees to enter into the
employ of the Company, or any parent, subsidiary, or affiliate of the Company as
the Company shall from time to time select, for an employment term commencing as
of the 1st day of October, 1998, and continuing for a period of five (5) years
from such date (the "Term of Employment"). At the end of the initial Term of
Employment, this Agreement shall automatically be renewed for an additional
three (3) year period, unless either Party provides at least one hundred eighty
(180) days written notice of its decision not to renew the Agreement.
SECOND: Paragraph 6 of said Employment Agreement is hereby deleted in its
entirety and the following new paragraph is hereby inserted in lieu thereof:
In addition, the Executive will receive a cash bonus of two percent (2%) of
the Company sales in excess of one million dollars ($1,000,000) in each fiscal
year that ends during the Term of Employment, beginning with the fiscal year
ending December 31, 1998, which bonus shall be paid on or before of February 15
of each year. On the 1st day of October of each year of the Term of Employment,
the Company will grant to Executive, pursuant to a stock option agreement, stock
options to purchase up to one hundred thousand (100,000) shares of the Company's
common stock, exercisable for a period of five (5) years from their date of
vesting, at a price of fifty cents $.50 per share. Pursuant to said stock option
agreement, the common stock underlying the options shall have, among other
provisions, customary registration rights and provide for the cashless exercise
of the vested options.
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to
be entered into as of the date and year herein above first set forth.
TECH LABORATORIES, INC.
Board of Directors
By:
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Name:
By:
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Name:
By:
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Name:
EXECUTIVE
By:
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Xxxxxxx X. Xxxxxxxx
