EXHIBIT 4.20
PRIVATE AND CONFIDENTIAL
July 5, 2001
Mr. Xxxxxx Xxxxx
000 Xxxxxx Xxxxx
Xxxxxxxxx, XX X0X 0X0
Dear Xx. Xxxxx:
On behalf of World Gaming plc, I am pleased to offer you the position of Vice
President and Chief Financial Officer. This letter will confirm the general
terms of our agreement.
The general terms of this offer are:
Annual Base Salary: $200,000 (to be reviewed annually). The
first review will be in February 2002.
Bonus Plan: You will be eligible for a bonus of up
to one-half of your base salary on an
annual basis payable in February. For
the remainder of the current fiscal
year, the bonus payment will be on a
pro-rated basis from July 16, 2001.
Annual Vacation: Four weeks.
Group Insurance: Regular health, dental, and ancillary
benefits as per World Gaming's current
policies. Where policies do not yet
exist, you will develop such policies.
Business Expenses: You will be reimbursed for all
reasonable business expenses including,
but not limted to cell phone use and
automobile expenses as per World
Gaming's current policies. Where
policies do not yet exist, you will
develop such policies.
XX. XXXXXX XXXXX
JULY 5, 2001
PAGE 2
Confidentiality: You will agree to execute a
confidentiality agreement in a form
acceptable to World Gaming's solicitor,
which will be effective for 6 months
after termination of your employment.
Severance: If you are released for any reason other
than for cause in the first six months
of your employment, you will receive
three months severance consisting of
salary and bonus pay in lieu of notice.
If released for any reason other than
cause between months six and twelve of
your employment, you will receive six
months severance consisting of salary
and bonus in lieu of notice. If released
for any reason other than cause between
months twelve and twenty-four of your
employment, you will receive twelve (12)
months severance consisting go bonus
salary and bonus in lieu of notice.
Options: Options on 200,000 shares in the equity
of World Gaming at a strike price of
$1.34 ($USD). Options will vest 33 1/3%
per year. In the initial year of your
employment, the first of the otherwise
annual grants will vest on a quarterly
basis.
Additional Options: Additional options on shares in equity
of World Gaming. All of these options
vest 33 1/3% per year on an annual basis
at a share price of $2.25 (USD).
World Gaming recognizes that your credibility in public financial markets is
important to you. It also realizes that it may require 4-5 weeks before you are
fully conversant and comfortable with the full extent of World Gaming's
operation. Accordingly, the Chief Executive Officer and Chief Operating Officer
will use their best efforts to avoid putting you in situation where interactions
with public markets might demand knowledge and information levels that surpass
your "comfort level."
This contract is subject to laws applicable in the Province of Ontario.
XX. XXXXXX XXXXX
JULY 5, 2001
PAGE 3
Would you kindly confirm acceptance of this offer by returning an executed copy
of this offer letter? If you have any questions or would like clarification on
any point, please call me at your convenience.
Sincerely,
Xxxxx Xxxxxxx
Chief Operating Officer
World Gaming plc
JCK/pbo
Xxxxxx and accepted this 7th day of July, 2001.
_______________________
Xxxxxx Xxxxx
