EMPLOYMENT AGREEMENT
Exhibit
10.4
PREMIER
ENERGY, INC.
00000
Xxxxxxx Xxxx, Xxxxx 000
Xxxxxx,
XX 00000
MR.
ASLANBI XXXXXXXXX KODZOKOV
Xxxxxxxxx
xxxxxxxxx 0-0, xxxx 000,
Xxxxxx ,
Xxxxxx
Tel - +
0 000 000 00 00
E-mail :
xx@xxxxxxx.xx
This
Agreement made as of this 30th day of
January 2009, by and among Aslanbi Kodzokov of Moscow, Russia (“Employee”) and
Premier Energy Corp., a Florida corporation with offices in Dallas, Texas (the
“Company”).
Whereas,
The Board of Directors of the Company recognizes Employee’s potential
contribution to the growth and success of the Company and desires to assure the
Company of Employee’s employment in an executive capacity as Secretary and to
compensate him for his services in performing in that capacity, the parties
agree to the following terms and conditions of employment.
Employee
wants to be employed by the Company and to commit himself to serve the Company
on the terms herein provided.
NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants and
agreements of the parties, the parties agree as follows:
1. Definitions.
“Benefits”
shall mean all the fringe benefits approved by the Board from time to time and
established by the Company for the benefit of employees generally and/or for key
employees of the Company as a class, including, but not limited to, regular
holidays, vacations, absences resulting from illness or accident, health
insurance, disability and medical plans (including dental and prescription
drug), group life insurance, and pension, profit-sharing and stock bonus plans
or their equivalent.
“Board”
shall mean the Board of Directors of the Company, together with an executive
committee thereof (if any), as same shall be constituted from time to
time.
“Cause”
for termination shall mean (i) Employee’s final conviction of a felony involving
a crime of moral turpitude, (ii) acts of Employee which, in the judgment of the
Board, constitute willful fraud on the part of Employee in connection with his
duties under this Agreement, including but not limited to misappropriation or
embezzlement in the performance of duties as an employee of the Company, or
willfully engaging in conduct materially injurious to the Company and in
violation of the covenants contained in this Agreement, or (iii) gross
misconduct, including but not limited to the willful failure of Employee either
to (a) continue to obey lawful written instruction of the Board after thirty
(30) days notice in writing of Employee’s failure to do so and the Board’s
intention to terminate Employee if such failure is not corrected, or (b) correct
any conduct of Employee which constitutes a material breach of this Agreement
after thirty (30) days notice in writing of Employee’s failure to do so and the
Board’s intention to terminate Employee if such failure is not
corrected.
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“Chairman”
shall mean the individual designated by the Board from time to time as its
chairman.
“Chief
Executive Officer” shall mean the individual having responsibility to the Board
for the operational affairs of the Company and who reports and is accountable
only to the President and the Board.
“Employee”
shall mean addressee and, if the context requires, his heirs, personal
representatives, and permitted successors and assigns.
“Company”
shall mean Company, a Florida corporation, together with such subsidiaries of
the Company as may from time to time exist.
“Territory”
means the Russian Federation.
2. Position,
Responsibilities, and Term of Employment. This Section shall
not restrict the Employee from any employment activity for which he is currently
engaged.
2.01 Position.
Employee shall serve as Secretary and in such additional management position(s)
as the Board shall designate. In this capacity Employee shall, subject to the
bylaws of the Company, and to the direction of the Board and the Chief Executive
Officer, serve the Company by performing such duties and carrying out such
responsibilities as are normally related to the position of Secretary in
accordance with the standards of the industry. The term of this
agreement is for 24 months.
2.02 Best Efforts
Covenant. Employee will, to the best of his ability, devote his full
professional and business time and best efforts to the performance of his duties
for the Company and its subsidiaries and affiliates.
2.03 Exclusivity
Covenant. During the Agreement’s term, Employee will not undertake or
engage in any other employment, occupation or business enterprise other than a
business enterprise in which Employee does not actively participate. Further,
Employee agrees not to acquire, assume, or participate in, directly or
indirectly, any position, investment, or interest in the Territory adverse or
antagonistic to the Company, its business or prospects, financial or otherwise,
or take any action towards any of the foregoing. The provisions of this Section
shall not prevent Employee from owning shares of any competitor of the Company
so long as such shares (i) do not constitute more than 5% of the outstanding
equity of such competitor, and (ii) are regularly traded on a recognized
exchange or listed for trading by NASDAQ in the over-the-counter
market.
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2.04 Post-Employment
Noncompetition Covenant. Except with the prior written consent of the
Board, Employee shall not engage in activities in the Territory either on
Employee’s own behalf or that of any other business organization, which are in
direct or indirect competition with the Company for a period of one (1) year
subsequent to Employee’s voluntary withdrawal from employment with the Company
(except for a termination pursuant to a Change in Control), or the Company’s
termination of Employee’s employment for Cause. Employee and the Company
expressly declare that the territorial and time limitations contained in this
Section and the definition of “Territory” are entirely reasonable at this time
and are properly and necessarily required for the adequate protection of the
business and intellectual property of the Company. If such territorial or time
limitations, or any portions thereof, are deemed to be unreasonable by a court
of competent jurisdiction, whether due to passage of time, change of
circumstances or otherwise, Employee and the Company agree to a reduction of
said territorial and/or time limitations to such areas and/or periods of time as
said court shall deem reasonable. For a period of one year subsequent
to Employee’s voluntary withdrawal from employment with the Company (except for
a termination pursuant to a Change in Control), or the Company’s termination of
Employee’s employment for Cause, Employee will not without the express prior
written approval of the Board (i) directly or indirectly, in one or a series of
transactions, recruit, solicit or otherwise induce or influence any proprietor,
partner, stockholder, lender, director, officer, employee, sales agent, joint
venturer, investor, lessor, supplier, customer, agent, representative or any
other person which has a business relationship with the Company or had a
business relationship with the Company within the twenty-four-(24) month period
preceding the date of the incident in question, to discontinue, reduce, or
modify such employment, agency or business relationship with the Company, or
(ii) employ or seek to employ or cause any business organization in direct or
indirect competition with the Company to employ or seek to employ any person or
agent who is then (or was at any time within six months prior to the date the
Employee or the competitive business employs or seeks to employ such person)
employed or retained by the Company. Notwithstanding the foregoing, nothing
herein shall prevent the Employee from providing a letter of recommendation to
an employee with respect to a future employment opportunity.
2.05 Confidential
Information. Employee recognizes and acknowledges that the Company’s
trade secrets and proprietary information and know-how, as they may exist from
time to time (“Confidential Information”), are valuable, special and unique
assets of the Company’s business, access to and knowledge of which are essential
to the performance of Employee’s duties hereunder. Employee will not, during or
after the term of his employment by the Company, in whole or in part, disclose
such secrets, information or know-how to any Person for any reason or purpose
whatsoever, nor shall Employee make use of any such property for his own
purposes or for the benefit of any Person (except the Company) under any
circumstances during or after the term of his employment, provided that after
the term of his employment these restrictions shall not apply to such secrets,
information and know-how which are then in the public domain (provided that
Employee was not responsible, directly or indirectly, for such secrets,
information or processes entering the public domain without the Company’s
consent). Employee shall have no obligation hereunder to keep confidential any
Confidential Information if and to the extent disclosure of any thereof is
specifically required by law; provided, however, that in
the event disclosure is required by applicable law, the Employee shall provide
the Company with prompt notice of such requirement, prior to making any
disclosure, so that the Company may seek an appropriate protective order.
Employee agrees to hold as the Company’s property all memoranda, books, papers,
letters, customer lists, processes, computer software, records, financial
information, policy and procedure manuals, training and recruiting procedures
and other data, and all copies thereof and therefrom, in any way relating to the
Company’s business and affairs, whether made by him or otherwise coming into his
possession, and on termination of his employment, or on demand of the Company at
any time, to deliver the same to the Company. Employee agrees that he will not
use or disclose to other employees of the Company, during the term of this
Agreement, confidential information belonging to his former employers. Employee
shall use his best efforts to prevent the removal of any Confidential
Information from the premises of the Company, except as required in his normal
course of employment by the Company. Employee shall use his best efforts to
cause all persons or entities to whom any Confidential Information shall be
disclosed by him hereunder to observe the terms and conditions set forth herein
as though each such person or entity was bound hereby.
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2.06 Nonsolicitation.
Except with the prior written consent of the Board, Employee shall not solicit
customers, clients, or employees of the Company or any of its affiliates for a
period of twelve (12) months from the date of the expiration of this Agreement.
Without limiting the generality of the foregoing, Employee will not willfully
canvas, solicit nor accept any such business in competition with the business of
the Company from any customers of the Company with whom Employee had contact
during, or of which Employee had knowledge solely as a result of, his
performance of services for the Company pursuant to this Agreement. Employee
will not directly or indirectly request, induce or advise any customers of the
Company with whom Employee had contact during the term of this Agreement to
withdraw, curtail or cancel their business with the Company. Employee will not
induce or attempt to induce any employee of the Company to terminate his/her
employment with the Company.
2.07 Records, Files.
All records, files, drawings, documents, equipment and the like relating to the
business of the Company which are prepared or used by Employee during the term
of his employment under this Agreement shall be and shall remain the sole
property of the Company.
2.08 Hired to Invent.
Employee agrees that every improvement, invention, process, apparatus, method,
design, and any other creation that Employee may invent, discover, conceive, or
originate by himself or in conjunction with any other Person during the term of
Employee’s employment under this Agreement [that relates to the business carried
on by the Company during the term of Employee’s employment under this Agreement]
shall be the exclusive property of the Company. Employee agrees to disclose to
the Company every patent application, notice of copyright, or other action taken
by Employee or any affiliate or assignee to protect intellectual property during
the 12 months following Employee’s termination of employment at the Company, for
whatever reason, so that the Company may determine whether to assert a claim
under this Section or any other provision of this Agreement. Any impropriety by
the Company voids these provisions.
2.09 Equitable
Relief. Employee acknowledges that his services to the Company are of
unique characters which give them a special value to the Company. Employee
further recognizes that violations by Employee of any one or more of the
provisions of this Section 2 may give rise to losses or damages for which the
Company cannot be reasonably or adequately compensated in an action at law and
that such violation(s) may result in irreparable and continuing harm to the
Company. Employee agrees that, therefore, in addition to any other remedy which
the Company may have at law and equity, including the right to withhold any
payment of compensation under Section 4 of this Agreement, the Company shall be
entitled to injunctive relief to restrain any violation, actual or threatened,
by Employee of the provisions of this Agreement.
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3.
Compensation.
3.01 Minimal Annual
Compensation. The Company shall pay to Employee for the services to be
rendered hereunder a base salary at an annual rate of US$ 50,000 (Fifty
Thousand) (“Minimum Annual Compensation”). There shall be an annual review for
merit by the Board and an increase as deemed appropriate to reflect the value of
services by Employee. At no time during the term of this Agreement shall
Employee’s annual base salary fall below Minimum Annual Compensation. In
addition, if the Board increases Employee’s Minimum Annual Compensation at any
time during the term of this Agreement, such increased Minimum Annual
Compensation shall become a floor below which Employee’s compensation shall not
fall at any future time during the term of this Agreement and shall become
Minimum Annual Compensation. Employee’s salary shall be payable in periodic
installments in accordance with the Company’s usual practice for similarly
situated employees of the Company.
3.02 Incentive
Compensation. In addition to Minimum Annual Compensation, Employee shall
be entitled to receive payments under the Company’s incentive compensation
and/or bonus program(s) (as in effect from time to time), if any, in such
amounts as are determined by the Company to be appropriate for similarly
situated employees of the Company. Any incentive compensation which is not
deductible in the opinion of the Company’s counsel, under § 162(m) of the
Internal Revenue Code shall be deferred and paid, without interest, in the first
year or years when and to the extent such payment may be deducted, Employee’s
right to such payment being absolute, subject only to the provisions of Section
2.09.
3.03 Participating in
Benefits. Employee shall be entitled to all Benefits for as long as such
Benefits may remain in effect and/or any substitute or additional Benefits made
available in the future to similarly situated employees of the Company, subject
to and on a basis consistent with the terms, conditions and overall
administration of such Benefits adopted by the Company. Benefits paid to
Employee shall not be deemed to be in lieu of other compensation to Employee
hereunder as described in this Section 3.
3.04 Specific
Benefits.
During
the term of this Agreement (and thereafter to the extent this
Agreement
shall
require):
(a)
Employee shall be entitled to four (4) weeks of paid vacation time per year, to
be taken at times mutually acceptable to the Company and Employee.
(b) In
addition to the vacation provided pursuant to Section 3.04(a) hereof, Employee
shall be entitled to not less than ten (10) paid holidays (other than weekends)
per year, generally on such days on which the New York Stock Exchange is closed
to trading.
(c)
Employee shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by him (in accordance with the policies and procedures
established by the Company or the Board for the similarly situated employees of
the Company) in performing services hereunder.
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OR
(d) Upon
submission of travel and expense reports accompanied by proper vouchers, the
Company will pay or reimburse Employee for all first class transportation,
hotel, living and related expenses incurred by Employee on business trips away
from the Company’s principal office or Employee’s principal residence, and for
all other business and entertainment expenses reasonably incurred by him in
connection with the business of the Company and its subsidiaries during the term
of this Agreement.
(e)
Employee shall be eligible to participate during the Employment Period in
Benefits
not inconsistent or duplicative of those set forth in this Section 3.04 as the
Company shall establish or maintain for its employees or executives
generally.
4.
Termination.
4.01 Termination by Company
for Other Than Cause. If during the term of this Agreement the Company
terminates the employment of Employee and such termination is not for Cause,
then, subject to the provisions of Section 2.09, the Company shall pay to
Employee an amount equal to the monthly portion of Employee’s Minimum Annual
Compensation multiplied by the greater of twenty-four (24) or the number of
months remaining in the term of this Agreement (the “Severance Period”) until
such time as Employee shall become reemployed in a position consistent with
Employee’s experience and stature. If Employee obtains such a position but
Employee’s annual compensation shall be less than the Minimum Annual
Compensation, then the difference shall be paid to Employee for the balance of
the Severance Period. Such difference shall be calculated as follows: The
difference between Employee’s Minimum Annual Compensation for any year, or
lesser period, in which this Agreement would have been in effect and the
annualized compensation payable to Employee in his new position during such
period shall be payable in the same manner as the Minimum Annual Compensation
was paid prior to termination over the period of such reemployment during such
period. If the Employee’s employment in a new position shall terminate, then for
the purposes of this Paragraph 4.01 Employee shall be entitled to continuation
of the Minimum Annual Compensation until he shall again become reemployed, in
which case only the difference shall be payable as aforesaid; and so on. [If the
Employee’s employment shall terminate as aforesaid or if the Employee’s
reemployment in a new position shall terminate, Employee shall use his best
efforts to become reemployed as soon as reasonably possible in a position
consistent with Employee’s experience and stature.]
4.02 Constructive
Discharge. If the Company fails to reappoint Employee to (or rejects
Employee for) the position or positions listed in Section 2.01, fails to comply
with the provisions of Section 3, or engages in any other material breach of the
terms of this Agreement, Employee may at his option terminate his employment and
such termination shall be considered to be a termination of Employee’s
employment by the Company for reasons other than “Cause.”
4.03 Termination by the
Company for Cause. The Company shall have the right to terminate the
employment of Employee for Cause. Effective as of the date that the employment
of Employee terminates by reason of Cause, this Agreement, except for Sections
2.04 through 2.09, shall terminate and no further payments of the Compensation
described in Section 3 (except for such remaining payments of Minimum Annual
Compensation under Section 3.01 relating to periods during which Employee was
employed by the Company, Benefits which are required by applicable law to be
continued, and reimbursement of prior expenses under Section 3.04) shall be
made.
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5.01 Governing Law.
This Agreement shall be construed in accordance with and governed for all
purposes by the laws of the State of New York.
6.01 Interpretation.
In case any one or more of the provisions contained in this Agreement shall, for
any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions
of this Agreement, but this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.
6.02 Notice. Any
notice required or permitted to be given hereunder shall be effective when
received and shall be sufficient if in writing and if personally delivered or
sent by prepaid cable, telex or registered air mail, return receipt requested,
to the party to receive such notice at its address set forth at the end of this
Agreement or at such other address as a party may by notice specify to the
other.
6.03 Amendment and
Waiver. This Agreement may not be amended, supplemented or waived except
by a writing signed by the party against which such amendment or waiver is to be
enforced. The waiver by any party of a breach of any provision of this Agreement
shall not operate to, or be construed as a waiver of, any other breach of that
provision nor as a waiver of any breach of another provision.
6.04 Binding Effect.
Subject to the provisions of Section 4 hereof, this Agreement shall be binding
on the successors and assigns of the parties hereto. All obligations of Employee
with respect to any Shares covered by this Agreement shall, as the context
requires, bind Employee’s spouse and the divorce or death of such spouse shall
not vitiate the binding nature of such obligation.
6.05 Survival of Rights and
Obligations. All rights and obligations of Employee or the Company
arising during the term of this Agreement shall continue to have full force and
effect after the termination of this Agreement unless otherwise provided
herein.
PREMIER ENERGY CORP. (The
Company)
/s/Xxxxxxx
Xxxxxx
By
Xxxxxxx Xxxxxx, President
ASLANBI KODZOKOV
(Employee)
/s/Aslanbi
Kodzokov
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