EXECUTIVE EMPLOYMENT AGREEMENT
THIS EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
as of the 18th day of August 1998, (the "Effective Date"), between SHOP TV &
TELEVISION, INC. a Nevada corporation, whose principal place of business is 0000
X. Xxxxxx Xxxx, Xxxxxxx Xxxxx, Xxxxxxx 00000 (the "Company") and Xxxx Warm, an
individual (the "Executive") whose address is 0000 XX 00xx Xxx, Xxxx Xxxxx,
Xxxxxxx 00000.
RECITALS
The Company is a Nevada corporation and is principally engaged in the
business of multimedia sales and marketing (the "Business").
A. The Company desires to employ the Executive and desires to continue to
employ the Executive and the Executive desires to continue in the employ of
the Company.
B. The Company has established a valuable reputation and goodwill in the
Business.
C. The Executive, by virtue of the Executive's employment with the Company
has become familiar with and possessed with the manner, methods, trade
secrets and other confidential information pertaining to the Company's
business, including the Company's customer base.
NOW, THEREFORE, in consideration of the mutual agreements herein made, the
Company and the Executive do hereby agree as follows:
1. Recitals. The above recitals are true, correct and are herein
incorporated by reference.
2. Employment. The Company hereby employs the Executive as its
Vice President and the Executive Operating Officer hereby accepts
employment, upon the terms and conditions hereinafter set forth.
3. Authority and Power During Employment Period.
a. Duties and Responsibilities. During the term of this
Agreement, the Executive shall serve as Vice President of the
Company and shall have general executive operating supervision over
the business and affairs of the Company, its subsidiaries and
divisions subject: to the guidelines and direction of the Board of
Directors of the Company. It is further the intention of the
parties that at all times during the "Term," as hereinafter
defined, of the Agreement, the Executive shall serve as a member of
the Board of Directors of the Company, in accordance with the
Bylaws of the Company.
b. Time Devoted. Throughout the term of the Agreement, the
Executive shall devote substantially all of the Executive's
business time and attention to the business and affairs of the
Company consistent with the Executive's senior executive position
with the Company, except for reasonable vacations and illness or
incapacity, but nothing in the Agreement shall preclude the
Executive from engaging in any business for Tricom Pictures &
Productions, Inc. or any personal business including as a member of
the board of directors of related companies, charitable and
community affairs, provided that such activities do not interfere
with the regular performance of the Executives duties and
responsibilities under this Agreement.
4. Term. The Term of employment hereunder will commence on the date as
set forth above and terminate three (3) years from the Effective Date,
and such term shall automatically be extended for successive one
(1) year terms thereafter unless (1) the parties mutually agree in
writing to alter or amend the terms of the Agreement; or (2) one or
both of the parties exercises their right pursuant to Section 6
herein, to terminate, this employment relationship. For purposes of
this Agreement, the Term (the "Term") shall include the initial term
and all renewals thereof.
5. Compensation and Benefits
a. Salary and Bonus. The Executive shall be entitled to salary
and bonus as set forth on Exhibit A attached hereto.
b. Executive Benefits. The Executive shall be entitled to
participate in all benefit programs of the Company currently
existing or hereafter made available to executives and/or other
salaried employees, including, but not limited to, pension and
other retirement plans, group life insurance, hospitalization,
surgical and major medical coverage, sick leave, disability and
salary continuation, vacation and holidays, cellular telephone and
all related costs and expenses, long-term disability, and other
fringe benefits.
c. Vacation. During each fiscal year of the Company, the
Executive shall be entitled to reasonable vacation time and to
utilize such vacation as the Executive shall determine; provided
however, that the Executive shall evidence reasonable judgment with
regard to appropriate vacation scheduling. Notwithstanding the
foregoing, employee shall be entitled to four (4) weeks vacation
per year, with unused vacation accruing to the following year.
d. Business Expense Reimbursement. During the Term of employment,
the Executive shall be entitled to receive proper reimbursement
for all reasonable, out-of-pocket expenses incurred by the
Executive (in accordance with the policies and procedures
established by the Company for its senior executive officers) in
performing services hereunder, provided the Executive properly
accounts therefor.
e. Automobile Expenses. The Company shall provide the Executive
with an automobile allowance not to exceed $500.00 per month plus
insurance. The Company shall also pay all reasonable
maintenance for the automobile that is the subject of the
automobile allowance.
6. Consequences of Termination of Employment.
a. Death. In the event of the death of the Executive during the
Term, salary shall be paid to the Executive's designated
beneficiary, or, in the absence of such designation, to the estate
or other legal representative of the Executive for a period of one
(1) year from and after the date of death.
b. Disability.
(1) In the event of the Executive's disability, as
hereinafter defined the Executive shall be entitled to
compensation in accordance with the Company's disability
compensation practice for senior executives, including any
separate arrangement or policy covering the Executive, but in
all events the Executive shall continue to receive the
Executive's salary for a period, at the annual rate in effect
immediately prior to the commencement of disability, of not
less than 180 days from the date on which the disability has
been deemed to occur as hereinafter provided below. Any
amounts provided for in this Section 6(b) shall be offset by
other 1ong-term disability benefits provided to the Executive
by the Company.
(2) "Disability" for purposes of this Agreement, shall be
deemed to have occurred in the event (A) the Executive is
unable by reason of sickness or accident, to perform the
Executive's duties under this Agreement for an aggregate of
190 days in any twelve-month period or (B) the Executive has
a guardian or the person or estate appointed by a court of
competent jurisdiction. Termination due to disability shall be
deemed to have occurred upon the first day of the month
following the determination of disability as defined in the
preceding sentence.
Anything herein to the contrary notwithstanding, if, following a
termination of employment hereunder due to disability as provided in
the preceding paragraph, the Executive becomes re-employed, whether as
an Executive or a consultant to the Company, any salary, annual
incentive payments or other benefits earned by the Executive from such
re-employment shall offset any salary continuation due to the Executive
hereunder commencing with the date of re-employment.
c. Termination by the Company for Cause.
(1) Nothing hereunder shall prevent the Company from
terminating Employment for "Cause" as hereinafter defined.
The Executive shall continue to receive salary only for the
period ending twenty (20) days after the date of such
termination plus accrued Bonus through such date of
termination. Any rights and benefits the Executive may have in
respect of any other compensation shall be determined in
accordance with the terms of such other compensation
arrangements or such plans or programs.
(2) "Cause" shall mean and include those actions or events
specified below in subsections (A) through (E) to the extent
the same occur, or the events constituting the same take place
subsequent to the date of execution of this Agreement: (A)
Committing or participating in an injurious act of fraud,
gross neglect or embezzlement against the Company, (B)
committing or participating in any other injurious act or
omission wantonly, willfully, recklessly or in a manner which
was grossly negligent against the Company, monetarily or
otherwise; (C) engaging in a criminal enterprise involving
moral turpitude; (D) conviction of an ad or acts constituting
a felony under the laws of the United States or any state
thereof, or (E) any assignment of this Agreement by the
Executive in violation of Section 13 of this Agreement. No
actions, events or circumstances occurring or taking place at
any time prior to the date of this Agreement shall in any
event constitute or provide any basis for any termination of
this Agreement for Cause;
(3) Notwithstanding anything else contained in this
Agreement this Agreement will not be deemed to have been
terminated for Cause unless and until there shall have been
delivered to the Executive a notice of termination, stating
that the Executive committed one of the types of conduct set
forth in Section 6(c) contained in this Agreement and
specifying the particulars thereof and the Executive shall be
given a thirty (30) day period to cure such conduct if
possible.
d. Termination by the Company Other than for Cause.
(1) The foregoing notwithstanding, the Company may
terminate the Executive's employment for whatever reason it
deems appropriate; provided, however, that in the event such
termination is not based on Cause, as provided in Section 6(c)
above, the Company may terminate this Agreement upon giving
three (3) months prior written notice. During such three (3)
month period, the Executive shall continue to Perform the
Executive's duties pursuant to this Agreement and the Company
shall continue to compensate the Executive in accordance with
this Agreement. The Executive will receive, at the Executive's
option, either (A) a lump sum equal to the "Compensation and
Benefits," as hereinafter defined. for the remaining balance
of the Term of this Agreement, at the current rate, reduced to
present value as set forth in Section 280G of the Internal
Revenue Code or (B) for the remaining balance of the Term of
this Agreement from and after the date of any such
termination, the Company shall on the last day of each
calendar month pay to the Executive such "Compensation and
Benefits", which shall be an amount equal to (y) one Hundred
percent (100%) of the Executive's compensation and benefits
set forth in Section 5, which shall specifically include the
Salary and Executive Benefits (the "Compensation and
Benefits'), on the date of any such termination, divided by
(Z) twelve (12); provided, however, that If (A) there is a
decrease in the Executive's Compensation and Benefits of more
than five (5%) percent prior to termination for any reason
other than for "Cause", and (B) the Executive. is terminated
without cause. the Compensation and Benefits shall be as
existed immediately prior to such a decrease. The Executive
will be entitled to continued Compensation and Benefits
coverage and credits as provided in Section 5 or to
reimbursement for the cost of providing the Executive with
comparable benefit coverage during the term in which the
Executive is receiving payments from the Company after
termination pursuant to Section 6(d). Such benefit coverage
will be offset by comparable coverage provided to the
Executive in connection with subsequent employment
(2) In the event that the Executive's employment with the
Company is terminated pursuant to this Section 6(d),
Section 6(f), Section 6(g) of this Agreement and all
references thereto shall be inapplicable as to the Executive
and the Company.
e. Voluntary Termination. In the event the Executive terminates
the Executive's employment on the Executive's own volition (except
as provided in Section 6(f) and/or Section 6(g)) prior to the
expiration of the Term of this Agreement, including any renewals
thereof, such termination shall constitute a voluntary termination
and in such event the Executive shall be limited to the same rights
and benefits as provided in connection with a termination for Cause
as provided in Section 6(c).
f. Termination of Employment. If the Executive so elects, a
termination by the Company without Cause under Section 6(d) shall
be deemed to have occurred upon the occurrence of one or more of
the following events without the express written consent of the
Executive:
(1) a significant change in the nature or scope of the
authorities, powers, functions, duties or responsibilities
attached to Executive's position as described in Section 3; or
(2) any reduction in the Executive's salary; or
(3) a material breach of the Agreement by the Company; or
(4) a material reduction of the Executive's benefits under
any employee benefit plan, program or arrangement (for the
Executive individually or as part of a group) of the Company
as then in effect or as in effect on the effective date of the
Agreement which reduction shall not be effectuated for
similarly situated employees of the Company; or
(5) failure by a successor company to assume the obligations
under the Agreement.
Anything herein to the contrary notwithstanding, the Executive shall
give written notice to the Board of Directors of the Company that the
Executive believes an, event has occurred which would result in a
Constructive Termination of the Executive's employment under this
Section 6(f), which written notice shall specify the particular act or
acts, on the basis of which the Executive intends to so terminate the
Executive's employment, and the Company shall then be given the
opportunity, within fifteen (15) days of its receipt of such notice
to cure said event, provided, however, there shall be no time period
permitted to cure a second or subsequent occurrence under this &
Section 6(f) (whether such second occurrence be of the same or a
different event specified in subsections (1) through (5) above).
g. Termination Following a Change of Control.
(1) In the event that a "Change in Control" or an "Attempted
Change in Control as hereinafter defined, of the Company
shall occur at any time during the Term hereof, the Executive
shall have the right to terminate the Executive's employment
under this Agreement upon thirty (30) days written notice
given at any time within one year after the occurrence of such
event, and such termination of the Executive's employment
with the Company pursuant to this Section 6(g)(l), and, in
any such event, such termination shall be deemed to be a
Termination by the Company Other than for Cause and the
Executive shall be entitled to such Compensation and Benefits
as set forth in Subsection 6(h) of this Agreement.
(2) For purposes of this Agreement, a "Change in Control" of
the Company shall mean a change in control (A) as set forth
in Section 280G of the Internal Revenue Code or (B) of a
nature that would be required to be reported in response to
Item 1 of the current report on Form 8-K, as in effect on the
date hereof, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 0000 (xxx "Xxxxxxxx Xxx"); provided that
without limitation, such a change in control shall be deemed
to have occurred at such time as:
(A) any "person", other than the Executive, (as
such term is used in Section 13(d) and 14(d) of the
Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing
fifty percent (50%) or more of the combined voting power
of the Company's outstanding securities then having the
right to vote at elections of directors; or,
(B) the individuals who at the commencement date of
the Agreement constitute the Board of Directors cease
for any reason to constitute a majority thereof unless
the election, or nomination for election, of each new
director was approved by a vote of at least two thirds
of the directors then in office who were directors at
the commencement of the Agreement; or
(C) there is a failure to elect three or more (or such
number of directors as would constitute a majority of
the Board of Directors) candidates nominated by
management of the Company to the Board of Directors; or
(D) the business of the Company for which the
Executive's services are principally performed is
disposed of by the Company pursuant to a partial or
complete liquidation of the Company, a sale of assets
(including stock of a subsidiary of the Company) or
otherwise.
Anything herein to the contrary notwithstanding, this Section 6(g)(2)
will not apply where the Executive gives the Executive's explicit
written waiver stating that for the purpose of this Section 6(g)(2) a
Change in Control shall not be deemed to have occurred. The Executive's
participation in any negotiations or other matters in relation to a
Change in Control shall in no way constitute such a waiver which can
only be given by an explicit written waiver as provided in the
preceding sentence.
An "Attempted Change in Control" shall be deemed to have occurred if
any substantial attempt accompanied by significant work efforts and
expenditures of money, is made to accomplish a Change in Control, as
described in subparagraphs (A), (3), (C) or (D) above whether or not
such attempt is made with the approval of a majority of the then
current members of the Board of Directors.
(3) In the event that within twelve (12) months of any
Change in Control of the Company or any Attempted Change in
Control of the Company, the Company terminates the employment
of the Executive under this Agreement for any reason other
than for Cause as defined in Section 6(c), or the Executive's
employment is constructively terminated as defined in Section
6(f), then, in any such event. Such termination shall be
deemed to be a Termination by the Company Other than for Cause
and the Executive shall be entitled to such Compensation and
Benefits as set forth in Subsection 6(d) of this Agreement
h. Compensation and Benefits Upon Termination of Executive
Employment. In the event of any termination of Executive's
employment Other than for Cause under Section 6(d),or any
termination of Executive's employment pursuant to Section 6(f) or
Section 6(g), and the effective date of such termination, the
Executive shall be entitled to receive the following:
(1) All life, disability and health insurance benefits to
which he was entitled to continue to receive thirty (30) days
prior to the Effective Date of the Settlement Agreement, for a
period of six (6) months following the effective date of such
termination; provided that in the Executive's sole discretion,
the Executive may receive the cash equivalent of all or any
part of such life, disability and/or health insurance benefits
from the Company in lieu of receiving such benefits; plus
(2) Compensation equal to one (1) time the Executive's
annual Salary, based upon the greater of the Executive's
Salary (i) immediately prior to the effective date of
termination or (ii) or as of ninety (90) days prior to the
effective date of termination. All Compensation shall be
payable to the Executive by-weekly; provided that in the
event that the Executive is entitled to receive the
Compensation as a result of a Change in Control, at the
Executive's option, the Executive may receive either (i) a
lump sum equal to the Compensation due to the Executive
pursuant to Section 6(h) reduced to present value, as set
forth in Section 280G of the Internal Revenue Code or
(ii) by-weekly; plus
The provisions of this Section 6(h) notwithstanding, the Compensation
and Benefits to be received by the Executive pursuant to this
Section 6(h) shall not exceed the amount set forth in Section 162(m) of
the Internal Revenue Code, or its successor provision.
7. Indemnification. The Executive shall continue to be covered by the
Certificate of Incorporation and/or the Bylaws of the Company with
respect to matters occurring on or prior to the date of termination
of the Executive's employment with the Company, subject to all the
provisions of Nevada and Federal law and the Certificate of
Incorporation and Bylaws of the Company then in effect. Such reasonable
expenses including attorneys' fees that may be covered by the
Certificate of Incorporation and/or Bylaws of the Company shall be paid
by the Company on a current basis in accordance with such provision,
the Company's Certificate of Incorporation and Nevada law. To the
extent that any such payment by the Company pursuant to the
Company's Certificate of Incorporation and/or Bylaws may be subject
to repayment by the Executive pursuant to the provisions of the
Company's Certificate of Incorporation or Bylaws, or pursuant to Nevada
or Federal law, such repayment shall be due and payable by the
Executive to the Company within twelve (12) months after termination
of all proceedings, if any, which relate to such repayment and to the
Company's affairs for the period prior to the date of termination of
the Executive's employment with the Company and as to which Executive
has been covered by such applicable provisions.
8. Withholding. Anything to the contrary notwithstanding, all payments
required to be made by the Company hereunder to the Executive or the
Executive's estate or beneficiaries shall be subject to the withholding
of such amounts, if any, relating to tax and other payroll deductions
as the Company may reasonably determine it should withhold pursuant to
any applicable law or regulation. In lieu of withholding such amounts,
the Company may accept other arrangements pursuant to which it is
satisfied that such tax and other payroll obligations will be satisfied
in a manner complying with applicable law or regulation.
9. Notices. Any notice required or permitted to be given under the
terms of this Agreement shall be sufficient if in writing and if sent
postage prepaid by registered or certified mail return receipt
requested; by overnight delivery; by courier; or by confirmed telecopy,
in the case of the Executive to the Executive's last place of business
or residence as shown an the records of the Company, or in the case of
the Company to its principal office as set forth in the first paragraph
of this Agreement, or at such other place as it may designate.
10. Covenant Not to Compete and Non-Disclosure of Information.
a. Covenant Not to Compete. The Executive acknowledges and
recognizes the highly competitive nature of the Company's business
and the goodwill continued patronage, and specifically the names
and addresses of the Company's Customers (as hereinafter defined)
constitute a substantial asset of the Company having been acquired
through considerable time, money and effort. Accordingly, in
consideration of the execution of this Agreement, in the event
the Executive's employment is terminated by reason of disability
pursuant to Section 6(b) or for Cause pursuant to Section 6(c),
then the Executive agrees to the following:
(1) That during the Restricted Period (as hereinafter
defined) and within the Restricted Area (its hereinafter
defined), the Executive will not, individually or in
conjunction with others, directly or indirectly, engage in any
Competitive Business Activities (as hereinafter defined),
whether as an officer, director, proprietor, employer,
partner, independent contractor, investor (other than as a
holder solely as an investment of less than 1% of the
outstanding capital stock of a publicly traded corporation),
consultant, advisor or agent.
(2) That during the Restricted Period and within the
Restricted Area, the Executive will not, directly or
indirectly compete with the Company by soliciting, inducing or
influencing any of the Company's Customers which have a
business relationship with the Company at the time during the
Restricted Period to discontinue or reduce the extent of such
relationship with the Company.
b. Non-Disclosure of Information. In the event Executive's
employment has been terminated pursuant to either Section 6(b) or
Section 6(c) hereof, Executive agrees that, during the Restricted
Period, Executive will not use or disclose any Proprietary
Information of the Company for the Executive; own purposes or for
the benefit of any entity engaged in Competitive Business
Practices. As used herein, the term "Proprietary Information"
shall mean trade secrets or confidential proprietary information of
the Company which are material to the conduct of the business of
the Company. No information can be considered Proprietary
Information unless the same is a unique process or method material
to the conduct of Company's Business, or is a customer list or
similar list of persons engaged in business activities with
Company, or if the same is otherwise in the public domain or is
required to be disclosed by order of any court or by reason of any
statute, rule, regulation ordinance or other governmental
requirement. Executive further agrees that in the event his
employment is terminated pursuant to Sections 6(b) or 6(c) above,
all Documents in his possession at the time of his termination
shall be returned to the Company at the Company's principal place
of business.
c. Documents. "Documents" shall mean all original written,
recorded, or graphic matters whatsoever, and any and all copies
thereof, including, but not limited to: papers; books; records;
tangible things; correspondence; communications; telex messages;
memoranda; work-papers, reports, affidavits; statements; summaries;
analyses; evaluations; customer records and information;
agreements; agendas; advertisements; instructions; charges;
manuals; brochures; publications; directories; industry lists;
schedules; price lists; customer lists; statistical records;
training manuals; computer printouts; books of account, records
and invoices reflecting business operations; all things similar to
any of the foregoing however denominated. In all cases where
originals are not available, the term "Documents" shall also mean
identical copies of original documents or non-identical copies
thereof.
d. Company's Customers. The "Company's Customers" shall be
deemed to be any partnerships, corporations, professional
associations or other business organizations for whom the Company
has performed Business Activities.
e. Restrictive Period. The "Restrictive Period" shall be deemed
to be thirty-six (36) months following termination of the
Executive's employment with the Company as described Section 6(b)
or 6(c) of this Agreement.
f. Restricted Area. The Restricted Area shall, if this
Agreement has been terminated pursuant to Section 6(b) or 6(c,), be
the United States, Canada and Mexico.
g. Competitive Business Activities. The term "Competitive
Business Activities" as used herein shall be deemed to mean
the Business.
h. Covenants as Essential Elements of this Agreement. It is
understood by and between the parties hereto that the foregoing
covenants contained in Sections 7(a) and (b) are essential elements
of this Agreement, and that but for the agreement by the Executive
to comply with such covenants, the Company would not have agreed to
enter into this Agreement. Such covenants by the Executive shall
be construed to be agreements independent of any other provisions
of this Agreement. The existence of any other claim or cause of
action whether predicated on any other provision in this Agreement,
at otherwise, as a result of the relationship between the parties
shall not constitute a defense to the enforcement of such covenants
against the Executive.
i. Survival After Termination of Agreement. Notwithstanding
anything to the contrary contained in this Agreement, the covenants
in, Sections 7(a) and (b) shall survive the termination of this
Agreement and the Executive's employment with the Company.
j. Remedies.
(1) The Executive acknowledges and agrees that the Company's
remedy at law for a breach or threatened breach of any of the
provisions of Section 7(a) or (b) herein would be inadequate
and a breach thereof will cause irreparable harm to the
Company. In recognition of this fact, in the event of a
breach by the Executive of any of the provisions of
Section 7(a) or (b), the Executive agrees that, in addition to
any remedy at law available to the Company, including, but not
limited to monetary damages, all rights of the Executive to
payment or otherwise under the, Agreement and all amounts then
or thereafter due to the Executive from the Company under this
Agreement may be terminated and the Company, without posting
any bond, shall be entitled to obtain, and the Executive
agrees not to oppose the Company's request for equitable
relief in the form of specific performance, temporary
restraining order, temporary or permanent injunction or any
other equitable remedy which may then be available to the
Company.
(2) The Executive acknowledges that the granting of a
temporary injunction, temporary restraining order or permanent
injunction merely prohibiting the use of Proprietary
Information would not be an adequate remedy upon breach or
threatened breach of Section 7(a) or (b) and consequently
agrees, upon proof of any such breach, to the granting of
injunctive relief prohibiting any form of competition with the
Company. Nothing herein contained shall be construed as
prohibiting the Company from pursuing any other remedies
available to it for such breach or threatened breach.
11. Withholding. Anything to the contrary notwithstanding, all
payments required to be made by the Company hereunder to the Executive
or the Executive's estate or beneficiaries shall be subject to the
withholding of such amounts, if any, relating to tax and other payroll
deductions as the Company may reasonably determine it should withhold
pursuant to say applicable law or regulation. In lieu of withholding
such amounts, the Company may accept other arrangements pursuant to
which it is satisfied that such tax and other payroll obligations
will be satisfied in a manner complying with applicable law or
regulation.
12. Notices. Any notice required or permitted to be given under the
terms of this Agreement shall be sufficient if in writing and if sent
postage prepaid by registered or certified mail, return receipt
requested by overnight delivery; by courier or by confirmed telecopy,
in the case of the Executive to the Executive's last place of business
or residence as shown on the records of the Company, or in the one of
the Company to its principal office as set forth in the first
paragraph of this Agreement, of at such other place as it may
designate.
13. Waiver. Unless agreed in writing, the failure of either party, at
any time to require performance by the other of any provisions
hereunder shall not affect its right thereafter to enforce the same nor
shall a waiver by either party of any breach of any provision hereof
be taken or hold to be a waiver of any other preceding or succeeding
breach of any term or provision of this Agreement. No extension of
time for the performance of any obligation or act shall be deemed to be
an extension of time for the performance of any other obligation or act
hereunder.
14. Completeness and Modification. This Agreement constitutes the
entire understanding between the parties hereto superseding all
prior and contemporaneous agreements or understandings among the
parties hereto concerning the Employment Agreement. This Agreement may
be amended modified, superseded or canceled and any of the terms,
covenants representations, warranties or conditions hereof may be
waived only by a written instrument executed by the parties or, in the
case of a waiver, by the party to be charged.
15. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of
which shall constitute but one agreement.
16. Binding Effect/Assignment. This Agreement shall be binding upon
the parties hereto their heirs, legal representatives successors and
assigns. This Agreement shall not be assignable by the Executive but
shall be assignable by the Company in connection with the sale,
transfer or other disposition of its business to any of the Company's
affiliates controlled by or under common control with the Company.
17. Governing Law. This Agreement shall become valid when executed
and accepted by Company. The parties agree that it shall be deemed
made and entered into in the State of Florida and shall be governed and
construed under and in accordance with the law of the State of Florida.
Anything in this Agreement to the contrary notwithstanding, the
Executive shall conduct the Executive's business in a lawful manner and
faithfully comply with applicable laws or regulations of the state,
city or other political subdivision in which the Executive is located.
18. Further Assurances. All parties hereto shall execute and deliver
such other instruments and do such other acts as may be necessary to
carry out the intent and purposes of this Agreement.
19. Headings. The headings of the sections are for convenience only
and shall not control of affect the meaning or construction at limit
the scope or intent of any of the provisions of this Agreement.
20. Survival. Any termination of this Agreement shall not, however,
affect the ongoing provisions of this Agreement which shall survive
such termination in accordance with their terms.
21. Severability. The invalidity or unenforceability, in whole or in
part, of any covenant, promise or undertaking, or any section,
subsection, paragraph, sentence, clause, phrase or word or of any
provision of this Agreement shall not affect the validity or
enforceability of the remaining portions thereof.
22 Enforcement. Should it become necessary for any party to
institute legal action to enforce the terms and conditions of this
Agreement the successful party will be awarded reasonable attorney's
fees at all trial and appellate levels, expenses and costs.
23. Venue. Company and Executive acknowledge and agree that the U.S.
District for the Southern District of Florida, or if such court lacks
jurisdiction, the 15th Judicial Circuit (or its successor in and for
Broward County, Florida, shall be the venue and exclusive proper forum
in which to adjudicate any case or controversy arising either, directly
or indirectly under or in connection with this Agreement and the
parties further agree that, in the event of litigation arising out of
or in connection with this Agreement in these courts they will not
contest or challenge the jurisdiction or venue of these courts.
24. Construction. This Agreement shall be construed within the fair
meaning of each of its terms and not against the party drafting the
document.
THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE HAS READ ALL OF THE TERMS OF THIS
AGREEMENT, UNDERSTANDS THE AGREEMENT AND AGREES TO ABIDE BY THE TERMS AND
CONDITIONS.
IN WITNESS WHEREOF, the parties have executive this Agreement as set forth in
the first paragraph of this Agreement.
Witness: The Company:
/S/XXXX XXXXXX /S/XXXX XXXXXXX
-------------- ----------------
Xxxx Xxxxxx Xxxx Xxxxxxx, Chief Executive Officer
Witness: The Executive:
/S/XXXX XXXXXX /S/XXXX WARM
-------------- ------------
Xxxx Xxxxxx Xxxx Warm
SCHEDULE A
1999 $200,000.00 Base Salary
BONUS STRUCTURE
Net Income to Company Bonus Payment (1)
------------------------- ------------------
$1.00 - $250,000.00 No Bonus
$250,000.01 - $350,000.00 A $25,000.00 Bonus
$350,000.01 - $450,000.00 An additional $25,000.00 Bonus
$450,000.01 - $500,000.00 An additional $12,500.00 Bonus
----------
(1) Bonuses will be proportionate to the Company receiving a minimum bottom line
of $250,000.00 after bonuses paid.
2000 $200,000.00 Base Salary
BONUS STRUCTURE
Net Income to Company Bonus Payment (1)
------------------------- ------------------
$1.00 - $500,000.00 No Bonus
$500,000.01 - $600,000.00 A $25,000.00 Bonus
$600,000.01 - $700,000.00 An additional $25,000.00 Bonus
$700,000.01 - $750,000.00 An additional $12,500.00 Bonus
----------
(1) Bonuses will be proportionate to the Company receiving a minimum bottom line
of $500,000.00 after bonuses paid.
Witness: The Company:
SHOP T.V. & TELEVISION, INC.
/S/XXXX XXXXXX By:/S/XXXX XXXXXXX
-------------- -------------------
Xxxx Xxxxxx Xxxx Xxxxxxx, Chief Executive Officer
Witness: The Executive:
/S/XXXX XXXXXX /S/XXXX WARM
-------------- ------------
Xxxx Xxxxxx Xxxx Warm
