EXHIBIT 10.1
EMPLOYMENT AGREEMENT
This Employment Agreement (this "Agreement") is made as of June 1, 1999 by
NET VALUE HOLDINGS, INC., a Delaware corporation (the "Employer"), and XXXXXX X.
XXXXX, an individual resident in the State of Pennsylvania (the "Executive").
RECITALS
Strategicus Partners, Inc. and Employer, expect to enter into a merger
transaction (the "Merger"), under which Employer will be the surviving
corporation. Executive is currently an at will employee of Employer. In
contemplation of the merger transaction, Employer desires to formalize the terms
of the Executive's continued employment by Employer, and the Executive desires
to continue his employment with Employer, upon the terms and conditions set
forth in this Agreement.
AGREEMENT
The parties, intending to be legally bound, agree as follows:
1. DEFINITIONS
For the purposes of this Agreement, the following terms have the meanings
specified or referred to in this Section 1:
"Agreement" means this Employment Agreement, as amended from time to time.
"Benefits" is defined in Section 3.1(b).
"Board of Directors" means the board of directors of Employer.
"Change of Control"shall mean the occurrence of any one of the following
events: (a) any "person" as such term is used in Section 3(a)(9) and 13(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act")(other than
a subsidiary or other affiliate of Employer), becomes a "beneficial owner," as
such term is used in Rule 13d-3 promulgated under the Exchange Act, of 50% or
more of any class of Employer's issued and outstanding common or preferred
stock, which interest in such stock comprises 50% or more of all issued and
outstanding voting shares; (b) the majority of Employer's board of directors
consists of individuals other than Incumbent Directors, which term means the
members of Employer's Board of Directors on the Effective Date of this
Agreement, including Executive; provided that any person becoming a director
subsequent to such date whose election or nomination for election was supported
by the Executive and/or one half of the directors who then comprised the
Incumbent Directors shall be considered to be an Incumbent Director; or (c) the
occurrence of any event which would be required to be reported by Employer
pursuant to Items 1 or 2 of Form 8-K under the Exchange Act, which shall be
determined without regard to whether Employer is actually required file a Form
8-K in relation to such transaction or event.
"Disability" is defined in Section 6.2.
"Effective Date" means the date of the closing of the merger transaction
between Employer and Strategicus Partners, Inc., in which Employer shall be the
surviving corporation.
"Employment Period" means the term of the Executive's employment under this
Agreement as defined in Section 2.2.
"for cause" is defined in Section 6.3.
"person" means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, or governmental body.
"Salary" is defined in Section 3.1(a).
2. EMPLOYMENT TERMS AND DUTIES
2.1 EMPLOYMENT
Effective on the Effective Date, Employer hereby employs the Executive, and
the Executive hereby accepts employment by the Employer, upon the terms and
conditions set forth in this Agreement.
2.2 TERM
Subject to the provisions of Section 6, the Employment Period for the
Executive's employment under this Agreement will be three years, beginning on
the Effective Date, and shall be automatically renewed for consecutive one-year
renewal terms thereafter, unless, not less than sixty (60) days prior to the end
of the original term or any renewal term, either party gives the other party
written notice of termination of employment which termination shall be effective
as of the end of such original term or renewal term.
2.3 DUTIES
The Executive will have such duties as are assigned or delegated to the
Executive by the Board of Directors, and will initially serve as the President
and Chief Executive Officer of Employer. The Executive agrees to perform in good
faith and to the best of his ability all services which may be required of him
hereunder and will devote his best efforts and such business time, skill,
attention and energies as are reasonably necessary to perform his duties and
responsibilities under this Agreement and to promote the success of the
Employer's business. The Executive shall be employed on a full-time basis by
Employer. Executive may continue to engage in the following activities: (a)
attending board of directors' or like meetings of other companies in which
Executive or an affiliate has invested or in which Executive has been elected to
serve, and (b) managing his personal investments, provided that such activities
set forth in (a) and (b) (individually or collectively) do not materially and
adversely interfere or conflict with the performance of Executive's duties or
responsibilities under this Agreement.
3. COMPENSATION
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3.1 BASIC COMPENSATION
(a) Salary. The Executive will be paid an annual salary of
$150,000, subject to adjustment as provided below (the "Salary"), which will be
payable in equal periodic installments according to the Employer's customary
payroll practices, but no less frequently than monthly. The Executive's Salary
will be reviewed by Employer's Board of Directors not less frequently than
annually, and may be adjusted upward or downward by Employer, but in no event
will the Salary be less than $150,000 per year.
(b) Benefits. The Executive will, during the Employment Period,
be permitted to participate in such pension, profit sharing, bonus (subject to
the provisions of Section 3.2), life insurance, hospitalization, major medical,
and other employee benefit plans of the Employer that may be in effect from time
to time, to the extent the Executive is eligible under the terms of those plans
(collectively, the "benefits").
(c) Options. The Executive will receive an award of options to
purchase 1,200,000 shares of the Employer's common stock (the "Options")
pursuant to the stock option plan to be implemented by Employer. 120,000 of the
Options will vest immediately and the remainder of the Options will vest over a
period of three years from the date of this Agreement. Employer may exercise the
Options until five years after their vesting date at an exercise price of $1.00
per share.
3.2 BONUS COMPENSATION
Executive shall be eligible to receive annual bonus compensation at
the discretion of Employer's Board of Directors and in accordance with
Employer's executive bonus or incentive compensation plan that may be in effect
from time to time.
4. EXPENSE REIMBURSEMENT
The Employer will pay the Executive's dues in such trade and professional
organizations as Employer deems appropriate, and will pay on behalf of the
Executive (or reimburse the Executive for) reasonable expenses incurred by the
Executive at the request of, or on behalf of, the Employer in the performance of
the Executive's duties pursuant to this Agreement, and in accordance with the
Employer's employment policies, including without limitation reasonable expenses
incurred by the Executive in attending conventions, seminars, other business
meetings and for promotional expenses, provided that any such activities must be
related to Employer's business and all individual expenses (or those aggregated
for a single convention, seminar or other business trip) greater than $5,000
must be approved by Employer's board of directors. The Executive must file
expense reports with respect to such expenses in accordance with the Employer's
policies.
5. VACATIONS AND HOLIDAYS
The Executive will be entitled to three (3) weeks' paid vacation each
calendar year in accordance with the vacation policies of the Employer in effect
for its executive officers from time to time. The Executive will also be
entitled to the paid holidays and other paid leave set forth in the
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Employer's policies. Vacation days during any calendar year that are not used by
the Executive during such calendar year may be used in any subsequent calendar
year; provided, however, that no more than six weeks' paid vacation may be
accrued or carried forward.
6. TERMINATION
6.1 EVENTS OF TERMINATION
The Executive's employment pursuant to this Agreement may be terminated by
Employer only on the following grounds:
(a) upon the death of the Executive;
(b) upon the disability of the Executive (as defined in Section
6.2) immediately upon notice from either party to the other; and
(c) for cause (as defined in Section 6.3), immediately upon
notice from the Employer to the Executive, or at such later time as such notice
may specify.
The Executive may terminate his employment only on the following grounds:
(d) without any cause whatsoever, provided that Executive gives
Employer at least 60 days' prior written notice of his termination of
employment;
(e) for any material breach of this Agreement by Employer, which
is not cured within ten (10) days after written notice to Employer;
(f) the occurrence of a Change in Control, provided that
Executive gives Employer at least 60 days' prior written notice of his
termination of employment.
6.2 DEFINITION OF DISABILITY
For purposes of Section 6.1, the Executive will be deemed to have a
"Disability" if, for physical or mental reasons, the Executive is unable to
perform the essential functions of the Executive's duties with reasonable
accommodation under this Agreement for 120 consecutive days, or 120 days during
any twelve-month period, as determined in accordance with this Section 6.2. The
Disability of the Executive will be determined by a medical doctor selected by
written agreement of the Employer and the Executive upon the request of either
party by notice to the other. If the Employer and the Executive cannot agree on
the selection of a medical doctor, each of them will select a medical doctor and
the two medical doctors will select a third medical doctor who will determine
whether the Executive has a Disability. The determination of the medical doctor
selected under this Section 6.2 will be binding on both parties. The Executive
must submit to a reasonable number of examinations by the medical doctor making
the determination of disability under this Section 6.2, and the Executive hereby
authorizes the disclosure and release to the Employer of such determination and
all supporting medical records. If the Executive is not legally competent, the
Executive's legal guardian or duly authorized attorney-in-fact
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will act in the Executive's stead, under this Section 6.2, for the purposes of
submitting the Executive to the examinations, and providing the authorization of
disclosure, required under this Section 6.2.
6.3 DEFINITION OF "FOR CAUSE"
For purposes of Section 6.1, the phrase "for cause" means: (a) the
Executive's material breach of this Agreement, which is not cured within ten
(10) days after written notice to Executive; (b) theft, fraud, or
misappropriation (or attempted misappropriation) of any of the Employer's funds
or property; or (c) a conviction or entry of a guilty plea or plea of no contest
with respect to a felony or other crime involving moral turpitude for which
imprisonment is a possible punishment.
6.4 TERMINATION PAY
Effective upon the termination of this Agreement, the Employer will be
obligated to pay the Executive (or, in the event of his death, his designated
beneficiary as defined below) the compensation provided in this Section 6.4:
(a) Termination by the Employer for Cause or Termination by
Executive Without Cause. If the Employer terminates this Agreement for cause or
Executive terminates his employment without cause, the Executive will be
entitled to receive his Salary only through the date such termination is
effective, but will not be entitled to any bonus compensation for the calendar
year during which such termination occurs.
(b) Termination upon Disability. If this Agreement is terminated
by either party as a result of the Executive's Disability, as determined under
Section 6.2, the Employer will pay the Executive his Salary through the
remainder of the calendar month during which such termination is effective and
for the lesser of (i) three consecutive months thereafter, or (ii) the period
until disability insurance benefits commence under the disability insurance
coverage furnished by the Employer to the Executive. Executive shall also be
entitled to receive that part of the Executive's bonus compensation, if any, for
the calendar year during which his Disability occurs, prorated through the end
of the calendar month during which his termination is effective.
(c) Termination upon Death. If this Agreement is terminated
because of the Executive's death, the Executive will be entitled to receive his
Salary through the end of the calendar month in which his death occurs, and that
part of the Executive's bonus compensation, if any, for the calendar year during
which his death occurs, prorated through the end of the calendar month during
which his death occurs.
(d) Termination by Executive Due to Material Breach by Employer.
If this Agreement is terminated by Executive due to a material breach of this
Agreement by Employer, then (i) Employer shall continue to pay to Executive his
monthly Salary and bonus, based upon the average annual bonus paid previously to
Executive prior to termination of this Agreement, for the lesser of one year
from the date of termination or the remaining original three-year Employment
Period; and (ii) all stock, options or other equity rights in Employer which
Executive received in connection with the Merger shall become immediately vested
and Employer shall promptly deliver to Executive stock certificates therefor, if
applicable.
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(e) Termination by Executive Due to a Change of Control. If this
Agreement is terminated by Executive due to a Change of Control, then (i)
Employer shall continue to pay to Executive his monthly Salary and bonus, based
upon the average annual bonus paid previously to Executive prior to termination
of this Agreement, for the lesser of one year from the date of termination or
the remaining original three-year Employment Period; and (ii) all stock, options
or other equity rights in Employer which Executive received in connection with
the Merger shall become immediately vested and Employer shall promptly deliver
to Executive stock certificates therefor, if applicable.
(f) Benefits. The Executive's accrual of, or participation in
plans providing for, the Benefits will cease at the effective date of the
termination of this Agreement, and the Executive will be entitled to accrued
Benefits pursuant to such plans only as provided in such plans.
7. NON-DISCLOSURE COVENANT
Employer and the Executive acknowledge that the services to be performed by
the Executive under this Agreement are unique and valuable and that, as a result
of the Executive's employment, the Executive will be in a relationship of
confidence and trust with Employer and will come into possession of
"Confidential Information" (i) owned or controlled by Employer and its
subsidiaries and affiliates; (ii) in the possession of Employer and its
subsidiaries and affiliates and belonging to third parties; or (iii) conceived,
originated, discovered or developed, in whole or in part, by the Executive. As
used herein "Confidential Information" means trade secrets and other
confidential or proprietary business, technical, personnel or financial
information of Employer, whether or not the Executive's work product, in
written, graphic, oral or other tangible or intangible forms, including but not
limited to specifications, samples, records, data, computer programs, drawings,
diagrams, models, consumer names, ID's or e-mail addresses, business or
marketing plans, studies, analyses, projections and reports, communications by
or to attorneys (including attorney-client privileged communications), memos and
other materials prepared by attorneys or under their direction (including
attorney work product), and software systems and processes that are not readily
available to the public, even it is not specifically marked as a trade secret or
confidential, unless Employer advises the Executive otherwise in writing or
unless the information has been shared by Employer with entities not bound by
non-disclosure agreements. In consideration of the compensation and benefits to
be paid or provided to the Executive by the Employer under this Agreement, the
Executive agrees not to directly or indirectly use or disclose to anyone, either
during the Employment Period or after the termination of this Agreement, except
in the performance of his duties of his employment with Employer or with
Employer's prior written consent, any Confidential Information of Employer. This
non-disclosure covenant does not apply to information that is disclosed or
becomes public through another source; which Executive is required to disclose
pursuant to court order, subpoena or applicable law (provided that Executive
will use reasonable efforts to provide Employer with prompt notice of any such
requests or requirement so that Employer may seek an appropriate protective
order); or which is disclosed in any proceeding to enforce or interpret this
Agreement. The Executive agrees that in the event of the termination of the
Executive's employment for any reason, the Executive will deliver to Employer,
upon request, all property belonging to Employer, including all documents and
materials of any nature pertaining to the Executive's work with Employer and
will not take with him any documents or materials of any description, or any
reproduction thereof of any description, containing or pertaining to any
Confidential Information.
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8. NON-COMPETITION
During the term of this Agreement and for a one-year period after
termination of this Agreement by Employer for cause or by Executive without any
cause whatsoever, as set forth in Sections 6.1(c) and (d), the Executive agrees
that he shall not (a) work for or be interested in any business which serves as
a holding company primarily for the purpose of acquiring entities whose products
and services are delivered to consumers over the Internet ("Internet Entities"),
(b) engage or be interested in or receive any compensation from any business in
which the services to be rendered by the Executive to such business directly
relates to services or products which are directly competitive with "primary"
services or products offered by the Employer or a subsidiary or affiliate of
Employer at the Executive's termination date; or (c) induce or attempt to induce
any employee, agent or customer of Employer or any of its subsidiaries or
affiliates to terminate or reduce the scope of his, her or its relationship with
Employer. A product or service shall be deemed "primary" only if such service or
product constitutes a primary component of the core business of Employer or its
majority-owned subsidiaries and affiliates on Executive's termination date. For
the purposes of this Agreement, the term Awork for or be interested in@ a
business means that the Executive is a stockholder, director, officer, employee,
partner, individual proprietor, lender or consultant with that business, but not
if (i) his interest is limited solely to the passive ownership of five percent
(5%) or less of any class of the equity or debt securities of a corporation
whose shares are listed for trading on a national securities exchange or traded
in the over-the-counter market, or (ii) he is interested in a company listed on
Schedule 8 hereto, or after termination hereof, works for such company; provided
however, that so long as this non-competition agreement is in effect, Executive
shall not work for a company listed on Schedule 8 if such company serves as a
holding company primarily for the purpose of acquiring Internet Entities. In
the event that any part of this Section 8 is adjudged invalid or unenforceable
by any court of record, board of arbitration or judicial or quasi judicial
entity having jurisdiction thereof by reason of length of time, geographical
coverage, activities covered, or for any other reason, then the invalid or
unenforceable provisions of this covenant shall be deemed reformed and amended
to the maximum extent permissible under applicable law and shall be enforced and
enforceable as so amended in accordance with the intention of the parties as
expressed herein.
9. GENERAL PROVISIONS
9.1 INJUNCTIVE RELIEF AND ADDITIONAL REMEDY
The Executive acknowledges that the injury that would be suffered by the
Employer as a result of a breach of the provisions of any provision of Sections
7 and 8 of this Agreement would be irreparable and that an award of monetary
damages to the Employer for such a breach would be an inadequate remedy.
Consequently Employer will have the right, in addition to any other rights it
may have, to obtain injunctive relief to restrain any breach or threatened
breach or otherwise to specifically enforce any provisions of Sections 7 and 8
of this Agreement, and the Employer will not be obligated to post bond or other
security in seeking such relief.
9.2 WAIVER
The rights and remedies of the parties to this Agreement are cumulative and
not alternative. Neither the failure nor any delay by either party in exercising
any right, power, or privilege under this Agreement will operate as a waiver of
such right, power, or privilege, and no single or partial exercise
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of any such right, power, or privilege will preclude any other or further
exercise of such right, power, or privilege or the exercise of any other right,
power, or privilege.
9.3 NOTICES
All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when (a)
delivered by hand, (b) sent by facsimile (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(c) when received by the addressee, if sent by a nationally recognized overnight
delivery service (receipt requested), in each case to the appropriate addresses
and facsimile numbers set forth below (or to such other addresses and facsimile
numbers as a party may designate by notice to the other parties):
If to Employer: Net Value Holdings, Inc.
Xxx Xxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxxxx, XX 00000
Facsimile No.: (000) 000-0000
With a copy to: Klehr, Harrison, Xxxxxx, Xxxxxxxxx & Xxxxxx
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxx
Facsimile No.: (000) 000-0000
If to Executive: Xxxxxx X. Xxxxx
0 Xxxxxxxxx Xxxx
Xxxxx, XX 00000
Facsimile No.: (000) 000-0000
9.4 ENTIRE AGREEMENT; AMENDMENTS
This Agreement and the documents referenced herein, contain the entire
agreement between the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, between the
parties hereto with respect to the subject matter hereof. This Agreement may
not be amended orally, but only by an agreement in writing signed by the parties
hereto.
9.5 GOVERNING LAW
This Agreement will be governed by the laws of the State of Delaware
without regard to conflicts of laws principles.
9.6 JURISDICTION
Any action or proceeding seeking to enforce any provision of, or based on
any right arising out of, this Agreement may be brought against either of the
parties in the courts of the State of Delaware, or, if it has or can acquire
jurisdiction, in the United States District Court for the District of Delaware,
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and each of the parties consents to the jurisdiction of such courts (and of the
appropriate appellate courts) in any such action or proceeding and waives any
objection to venue laid therein. Process in any action or proceeding referred
to in the preceding sentence may be served on either party anywhere in the
world.
9.7 ASSIGNABILITY, BINDING NATURE
This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors, heirs (in the case of the Executive)
and assigns. No rights or obligations of the Executive under this Agreement may
be assigned or transferred by the Executive other than his rights to
compensation and benefits, which may be transferred only by will or operation of
law.
9.8 SURVIVAL
The respective rights and obligations of the parties hereunder shall
survive any termination of the Executive's employment to the extent necessary to
the intended preservation of such rights and obligations.
9.9 PRIOR AGREEMENTS
The Executive represents and warrants to Employer that his execution and
performance of this Agreement shall not constitute a breach of any contract,
agreement or understanding, whether oral or written, to which he is a party or
by which he is bound.
9.10 ACKNOWLEDGMENT
The Executive hereby acknowledges and certifies that he has read the terms
of this Agreement, that he has been informed by Employer that he should discuss
it with an attorney of his choice, and that he understands its terms and
effects. The Executive further acknowledges that based on his training and
experience, he has the capacity to earn a livelihood by performing services as
an employee or otherwise in a business that does not violate the provisions of
Section 8.
9.11 SECTION HEADINGS, CONSTRUCTION
The headings of Sections in this Agreement are provided for convenience
only and will not affect its construction or interpretation. All references to
"Section" or "Sections" refer to the corresponding Section or Sections of this
Agreement unless otherwise specified. All words used in this Agreement will be
construed to be of such gender or number as the circumstances require. Unless
otherwise expressly provided, the word "including"@ does not limit the preceding
words or terms.
9.12 SEVERABILITY
If any provision of this Agreement is held invalid or unenforceable by any
court of competent jurisdiction, the other provisions of this Agreement will
remain in full force and effect. Any provision
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of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.
9.13 COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original copy of this Agreement and all of which, when
taken together, will be deemed to constitute one and the same agreement. This
Agreement (and all other agreements, documents, instruments and certificates
executed and/or delivered in connection herewith) may be executed by facsimile
signatures, each of which shall be deemed an original copy of this Agreement (or
other such agreement, document, instrument and certificate).
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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement
as of the date first written above.
EMPLOYER:
NET VALUE HOLDINGS, INC.
By: /s/ Xxxxx Xxxxxx
------------------------------
Xxxxx Xxxxxx, Chairman of the
Board of Directors
EMPLOYEE:
/s/ Xxxxxx X. Xxxxx
----------------------------------
Xxxxxx X. Xxxxx, individually
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SCHEDULE 8
EMPLOYMENT AGREEMENT
APP Investments, Inc.
Aviation Holdings Group, Inc.
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