Exhibit 10.6
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made this 10th day of
January, 1996 by and between Creditrust, a Maryland Corporation (hereinafter
referred to as "Creditrust") having its principal office at 0000 Xxxxxxxx
Xxxxxxxxx, Xxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxx 00000 and Xxxx Xxxxxxxx
(hereinafter referred to as "Xx. Xxxxxxxx"). In consideration of the mutual
covenants and promises contained herein and Xx. Xxxxxxxx'x continued employment,
the sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
1. DEFINITIONS. Unless the context otherwise requires, when
used in this Agreement, the following terms shall have the following meanings:
(a) "Group" shall mean the recovery teams, each led by a
supervisor, that report directly to a Recovery Manager (or Assistant
Manager). It is anticipated that each Recovery Manager shall have their
own Group, and therefore shall not be entitled to incentive
compensation based upon the production of any other Group.
(b) "Eligible Collectors" are defined as any collectors who
are employed in your Group according to the following schedule:
A collector shall be counted as .25 of an Eligible
Collector for the month in which their 30th day of
employment falls.
A collector shall be counted as .50 of an Eligible
Collector for the month in which their 60th day of
employment falls.
A collector shall be counted as .75 of an Eligible
Collector for the month in which their 90th day of
employment falls.
A collector shall be counted as an Eligible Collector
for the month in which their 120th day of employment
falls and for each month thereafter.
( c) "Good Funds" are defined as any moneys that have been
deposited and have cleared. Any checks returned "NSF" will be charged
back against the total good funds received. Creditrust's management
will wait ten (10) calendar days from the end of each month, to
determine any charge backs, before disbursing any commissions.
(d) "Group Average" is defined as the total amount of Good
Funds collected by the Eligible Collectors, divided by the number of
Eligible Collectors.
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2. EMPLOYMENT AT WILL. Creditrust hereby employs Xx. Xxxxxxxx and Xx.
Xxxxxxxx shall serve Creditrust upon the terms and conditions hereinafter set
forth. Notwithstanding any other provision in ties Agreement or in any other
document to the contrary, this Agreement creates an employment relationship of
indefinite duration which may be legally terminated at the pleasure of either
Creditrust of Xx. Xxxxxxxx at any time and without any liability.
3. CAPACITY AND PERFORMANCE.
(a) Capacity. Xx. Xxxxxxxx shall serve as the Recovery Manager
of Creditrust and shall serve, with no additional compensation, in any
other office or position as determined by Xxxxxx X. Xxxxxx ("Xx.
Xxxxxx") or his successor or designee.
(b) Duties. As Recovery Manager of Creditrust, Xx. Xxxxxxxx
shall be employed by Creditrust on a full time basis, and shall
perform, on behalf of Creditrust, such duties customary to his position
and additional duties as may be designated by Xx. Xxxxxx or his
successor of designee from time to time.
4. COMPENSATION.
(a) Base Compensation. Creditrust shall pay to Xx. Xxxxxxxx an
annual base salary of Eighty Five Thousand Dollars ($85,000) during the
term of the Agreement. Creditrust .shall pay Xx. Xxxxxxxx'x annual
salary to him in accordance with standard payment practices of
Creditrust as adopted or employed by Creditrust from time.
(b) Incentive Compensation. Commencing on January 1, 1997 and
ending on the termination of this Agreement, Xx. Xxxxxxxx shall earn a
commission equal to:
i. 0.05% of the Good Funds collected by the
Eligible Collectors when the Group Average
is less than $7,500.
ii. 0.1% of the Good Funds collected by the
Eligible Collectors when the Group Average
is between $7,501 and $11,999.
iii. 0.15% of the Good Funds collected by the
Eligible Collectors when the Group Average
is between $12,000 and $14,999.
iv. 0.2% of the Good Funds collected by the
Eligible Collectors when the Group Average
is between $15,000 and $17,999.
v. 0.3% of the Good Funds collected by the
Eligible Collectors when the Group Average
is between $18,000 and $21,999.
vi. 0.3% of the Good Funds collected by the
Eligible Collectors when the Group Average
exceeds $22,000.
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(c) Management Bonus, The Recovery Manager will also receive a
management bonus of $10.00 for each Eligible Collector.
5. RELOCATION EXPENSES. Creditrust shall reimburse Xx. Xxxxxxxx up to
$10,000 of his actual moving expenses as well as up to $10,000 of his actual
temporary residence costs for the first several months of his employment.
6. BENEFITS. Xx. Xxxxxxxx may participate, to the extent he meets
eligibility standards, in any and all benefit plans of Creditrust which may
include group life and disability insurance, hospitalization, medical and dental
coverage's, retirement, profit sharing and/or pension plans and any and all
similar benefits generally provided to employees of Creditrust. Creditrust
reserves the right to terminate or modify all or any of its benefit plans.
7. VACATION. Xx. Xxxxxxxx shall be entitled to an annual vacation of
duration equal to the duration of the annual vacation available to management
level employees of Creditrust with the same tenure, to be taken at a time
acceptable to Creditrust, subject to the reasonable business needs of
Creditrust. Xx. Xxxxxxxx shall be paid his salary during such vacation period.
8. CONFIDENTIALITY AGREEMENT. The parties, by their signatures, adopt
and ratify all of the provisions of the Confidentiality Agreement that is
attached and incorporated by reference into this Agreement as if set forth at
length. In the event that a court of competent jurisdiction finds that any term
or provision in this Agreement conflicts with any term or provision in the
Confidentiality Agreement, then the terms and provisions in this Agreement shall
supersede the conflicting terms or provisions in the Confidentiality Agreement,
but only to the extent of the conflict.
9. CONFLICTING AGREEMENTS. Xx. Xxxxxxxx hereby represents and warrants
to Creditrust that his execution of this Agreement and the performance of his
obligations hereunder will not breach or be in conflict with any other agreement
to which he may be a party or may be bound and is not subject to any covenants
against competition or similar covenants that would affect performance of his
duties and obligations hereunder. Xx. Xxxxxxxx shall not use for the benefit of
Creditrust any proprietary information of a third party without such third
party's consent.
10. WAIVER. The waiver by either Creditrust or Xx. Xxxxxxxx of a breach
of any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach by either Creditrust or Xx. Xxxxxxxx.
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11. ASSIGNMENT: BINDING EFFECT. This Agreement shall inure to the
benefit of and be finding upon Creditrust, its successors and assigns. Xx.
Xxxxxxxx may assign his right to payment under this Agreement but not his
obligations hereunder.
12. NOTICE. Any notice, writing or other communication required or
permitted to be given under the terms of this Agreement shall be in writing an
sent by certified or registered mail in the United States mail, postage prepaid,
return receipt requested, or by telegram, and addressed as follows or to such
other address which may from time to time be given by the parties:
If to Creditrust:
Xxxxxx X. Xxxxxx, President
Creditrust Corporation
0000 Xxxxxxxx Xxxxxxxxx, Xxxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
If to Xx. Xxxxxxxx:
If mailed, the notice period shall be deemed to begin in two (2) days following
the date on which that notice is mailed.
13. MISCELLANEOUS PROVISIONS.
(a) Captions. The descriptive headings of the several sections
of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.
(b) Severability. In the event that one or more of the
provisions of this Agreement shall be invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability for the
remaining provision contained therein shall not in any way affect to
the fullest extent of the law.
(c) Entire Agreement. This Agreement contains the entire
agreement between the parties and supersedes all prior oral or written
agreements, commitments, or understandings with respect to the matters
provided for herein, and no modification shall be finding upon the
party affected unless set forth in writing and duly executed by each
party affected. All covenants and agreements in these Agreement by or
on behalf of any
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of the parties hereto shall find and inure to the benefit of the
respective successors, assigns and personal representatives.
(d) Governing Law. This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be
governed by, the laws of the State of Maryland exclusive of its
conflicts of law rules.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day
and year first above written.
CREDITRUST CORPORATION
By: /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx, President
XXXX XXXXXXXX
By: /s/ Xxxx Xxxxxxxx
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Xxxx Xxxxxxxx
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