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EXHIBIT 10.24
MANAGEMENT EMPLOYMENT AGREEMENT
THIS MANAGEMENT EMPLOYMENT AGREEMENT (this "AGREEMENT") is entered
into by and between Air Drilling Services, Inc., a Wyoming corporation
("EMPLOYER"), and Xxxxxx Xxxxxxxx ("EMPLOYEE") on this 20 day of June, 1997,
but to be effective on the 20th day of June, 1997 ("Effective Date").
W I T N E S S E T H :
WHEREAS, Employer desires to employ Employee and Employee desires to
be employed by Employer upon the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the premises, mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:
ARTICLE 1
TERM AND NATURE OF EMPLOYMENT
1.1 TERM OF EMPLOYMENT. Subject to the terms and conditions of this
Agreement, Employer hereby employs Employee and Employee hereby accepts
employment with Employer for a term beginning on the Effective Date as set
forth above through and including June 19, 2000 (the "INITIAL TERM"), unless
this Agreement and Employee's employment hereunder are sooner terminated
pursuant to Article 5. Upon expiration of the Initial Term, this Agreement
shall remain in full force and effect in a series of automatic renewals in
increments of one consecutive year (each such year term a "RENEWAL TERM") until
this Agreement and Employee's employment hereunder are terminated in accordance
with Article 5. The Initial Term together with each Renewal Term shall
hereinafter be referred to collectively as the "EMPLOYMENT PERIOD."
1.2 PRINCIPAL DUTIES. Employee's employment hereunder shall be in
the capacity of President of Air Drilling Services, Inc. In such capacity,
Employee shall perform the duties for which he currently is responsible as an
employee of Employer and/or any duties set forth in any job description
provided by Employer. In addition, Employee shall perform other duties as may
from time to time be prescribed by Employer's Board of Directors or more senior
management and which are reasonably related or incidental to the capacity in
which Employee serves Employer. Employee shall perform his duties hereunder in
accordance with any lawful instructions, rules, regulations or policies made or
adopted by Employer's Board of Directors or more senior management, including
those applicable to Employer's employees generally. During the Employment
Period, Employee shall devote his full time, and best efforts and skills to the
business and interests of Employer during Employer's normal working hours, do
his utmost to further enhance and develop Employer's best interests and
welfare, and endeavor to improve his ability and knowledge of Employer's
business, particularly as it relates to his duties hereunder, in an effort to
increase the value of his services for the mutual benefit of the parties
hereto. At all times during the term of this Agreement, Employee shall project
a positive and professional image on behalf of Employer.
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June 20, 1997
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1.3 ACCOUNTING AND FIDELITY BOND. Employee shall truthfully and
accurately make, maintain and preserve all records and reports that Employer
may from time to time request or require. Employee shall fully account for all
money, records, goods, wares and merchandise or other property belonging to
Employer or its "AFFILIATES" (as that term is defined in Rule 405 under the
Securities Act of 1933, as amended) of which he may have custody and will pay
over and deliver the same promptly whenever and however he may be directed to
do so. Employee also shall make available to Employer any and all information
of which he has knowledge that is relevant to Employer's business, and will
make all suggestions and recommendations which he feels will be of benefit to
Employer. Employee shall, upon Employer's written request, furnish all
information and take any other steps necessary to enable Employer to obtain a
fidelity bond conditioned on the rendering of a true account by Employee of all
moneys, goods or other property which may come into the custody, charge or
possession of Employee during the Employment Period. The surety company
issuing the bond and the amount of the bond must be acceptable to Employer in
its sole discretion. Employer shall pay all premiums on any such bond.
1.4 EMPLOYEE DISHONESTY. If at any time Employee becomes aware or
believes that any other employee of the Employer is or appears to be (i)
removing or using the property or funds of Employer or its Affiliates for the
benefit of anyone other than Employer or its Affiliates, or (ii) providing
Confidential Information (as defined in Section 3.2) to any person not
authorized by Employer to receive such Confidential Information (any such
employee described in (i) or (ii) being referred to as a "DISHONEST EMPLOYEE"),
Employee shall immediately communicate his knowledge or belief as to such
matters to Employer's Board of Directors. Employee acknowledges and agrees
that he shall be conclusively presumed to be in complicity with such Dishonest
Employee if Employee does not so disclose his knowledge or belief as to such
matters to Employer's Board of Directors.
1.5 FIDUCIARY DUTIES OF EMPLOYEE. The obligations of Employee
expressed in this Agreement shall be in addition to any obligations imposed
upon Employee as an employee or officer of Employer or its Affiliates by
Employer's Policies and Procedures, as amended, the law of the State of Texas
applicable to employees, the General Corporation Law of the State of Wyoming
applicable to corporate officers, or federal law which limit the activities of
an employee or corporate officer to those which will not threaten, impair or
usurp the goodwill, trade secrets, intellectual property, business
opportunities, and business relations of his employer.
1.6 PLACE OF PERFORMANCE. Employee shall perform his duties
hereunder at Employer's offices in Englewood, Colorado or at such other place
where Employer's offices subsequently may be located, or at any other place as
may be directed by Employer in order to enable Employee to discharge his duties
hereunder; provided however, that Employee shall have no obligation to relocate
to any location which is more than one hundred (100) miles from Employer's
offices in Englewood, Colorado. Notwithstanding the foregoing, if Employer
requires Employee's relocation, Employer will allow Employee the choice to
accept relocation or take a payoff of the remaining amount due under this
Agreement. Employee acknowledges and agrees that Employer may require Employee
to travel and render services in different locations from time to time incident
to the performance of his duties hereunder.
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June 20, 1997
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ARTICLE 2
COMPENSATION
For and in consideration of the performance by Employee of the
services, terms, conditions, covenants and agreements contained in this
Agreement, Employer shall pay to Employee at the times, in the amounts and in
the manner herein provided, the following:
2.1 BASE COMPENSATION. As the principal consideration for the
services to be performed by Employee hereunder during the Employment Period,
Employee shall be entitled to receive as base compensation from Employer a
salary of not less than Two Hundred Sixty-Five Thousand Six Hundred Fifty
Dollars ($265,650.00) per year (the "BASE SALARY"), which shall be prorated for
any partial employment period and payable in the manner and on the timetable in
which Employer's payroll is customarily handled, or at such more frequent
intervals as Employer and Employee may hereafter agree to from time to time.
No overtime compensation shall be payable under this Agreement. Employer's
Board of Directors shall review Employee's performance at least annually and
shall make any adjustments to Employee's compensation which it deems, in its
sole discretion, appropriate, provided that at no time during the Employment
Period shall Employee's compensation be adjusted to an amount below the Base
Salary. Employer shall be entitled to withhold from all amounts of
compensation payable under this Article 2 such amounts on account of payroll
taxes and similar matters as are required by any applicable law, rule, or
regulation of any appropriate governmental authority. Such compensation shall
continue to be paid during any period of physical or mental incapacity unless
and until Employee's employment is terminated as herein provided.
2.2 BONUSES AND BENEFITS. In addition to the Base Salary described
above, Employer shall provide Employee with the following during the Employment
Period:
(a) bonuses, when and based upon or subject to such terms and
conditions as Employer's Board of Directors, in its sole and
absolute discretion, may determine; provided, however, a bonus
plan , as mutually agreed upon by the parties, shall be
prepared which will make a bonus of thirty-three and one third
percent (33 1/3%) of base compensation payable at the
completion of the first year of this Agreement if all bonus
plan criteria are met;
(b) participation in any present or future disability, medical,
health, dental, insurance, pension, profit- sharing, thrift,
retirement, investment, and stock appreciation plans, and any
other benefit, bonus or compensation plans on the same terms
generally available to all of Employer's employees generally
or its operating officers in particular;
(c) payment or reimbursement, as the case may be, of reasonable
business expenses (within limits that may be established by
Employer's Board of Directors) incurred in connection with the
performance of his duties hereunder, such expense payment or
reimbursement being subject to, and made in accordance with
Employer's policies
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June 20, 1997
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and procedures on employee expense payment or reimbursement in
effect from time to time;
(d) use of the Employer leased 1995 Mercedes Benz, S 500
automobile plus reimbursement of the full cost of repairs,
maintenance, gasoline, oil and cleaning;
(e) Employer shall pay for Employee's memberships at the Valley
Country Club, the Greenwood Athletic Club, the Desert Falls
Country Club, and the Denver Petroleum Club;
(f) to the extent that Employer maintains a condominium in Palm
Springs, California for customer entertainment, Employee shall
be entitled to use said condominium for such purpose if said
condominium is available; and
(g) as separate consideration to Employee for entering into the
covenants and restrictions set forth in Articles 3 and 4,
Employer agrees to pay Employee, on the Effective Date, a
signing bonus in the amount of Ten Thousand Dollars
($10,000.00). Employee acknowledges the adequacy of the
consideration received.
2.3 VACATION. During the Employment Period, Employee shall accrue
paid vacation time in such amounts and at such times as determined by
Employer's Board of Directors, in its sole discretion; provided, however, that
the minimum amount of paid vacation to which Employee shall be entitled shall
be no less than that to which he is entitled as an employee of Employer
immediately prior to the effective date of this Agreement. If such vacation
time is not taken by Employee during the term of this Agreement, there will be
compensation payable in lieu thereof. Notwithstanding the foregoing, in no
event shall Employee be entitled to less than five (5) weeks of paid vacation.
ARTICLE 3
CONFIDENTIAL INFORMATION; PROPERTY RIGHTS
3.1 NON-DISCLOSURE OBLIGATION OF EMPLOYEE. For purposes of this
Article 3, all references to Employer shall mean and include its Affiliates (as
defined in Section 1.3). Employee hereby acknowledges, understands and agrees
that whether developed by Employee or others employed by or in any way
associated with Employee or Employer, all Confidential Information, as defined
in Section 3.2, is the exclusive and confidential property of Employer and
shall be at all times regarded, treated and protected as such in accordance
with this Agreement. Employee acknowledges that all such Confidential
Information is in the nature of a trade secret. Failure to xxxx any writing
confidential shall not affect the confidential nature of such writing or the
information contained therein.
3.2 DEFINITION OF CONFIDENTIAL INFORMATION. "CONFIDENTIAL
INFORMATION" shall mean information, whether or not originated by Employee,
which is used in Employer's business and (1) is proprietary to, about or
created by Employer; (2) gives Employer some competitive business advantage or
the opportunity of obtaining such advantage, or the disclosure of which could
be
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June 20, 1997
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detrimental to the interests of Employer; (3) is designated as Confidential
Information by Employer, known by the Employee to be considered confidential by
Employer, or from all the relevant circumstances considered confidential by
Employer, or from all the relevant circumstances should reasonably be assumed
by Employee to be confidential and proprietary to Employer; or (4) is not
generally known by non-Employer personnel. Such Confidential Information
includes, but is not limited to, the following types of information and other
information of a similar nature (whether or not reduced to writing or
designated as confidential):
(a) Work product resulting from or related to work or projects
performed or to be performed for Employer or for clients of
Employer, including but not limited to data bases, draft and
other non-public written documents, the interim and final
lines of inquiry, hypotheses, research and conclusions related
thereto and the methods, processes, procedures, analyses,
techniques and audits used in connection therewith;
(b) Computer software of any type or form in any stage of actual
or anticipated research and development, including but not
limited to programs and program modules, routines and
subroutines, processes, algorithms, design concepts, design
specifications (design notes, annotations, documentation,
flowcharts, coding sheets, and the like), source codes, object
codes and load modules, programming, program patches and
system designs;
(c) Information relating to Employer's proprietary rights prior to
any public disclosure thereof, including but not limited to
the nature of the proprietary rights, production data,
technical and engineering data, test data and test results,
the status and details of research and development of products
and services, and information regarding acquiring, protecting,
enforcing and licensing proprietary rights (including, without
limitation, patents, copyrights and trade secrets);
(d) Internal Employer personnel and financial information, vendor
names and other vendor information (including vendor
characteristics, services and agreements), purchasing and
internal cost information, internal service and operational
manuals, and the manner and methods of conducting Employer's
business;
(e) Marketing and development plans, price and cost data, price
and fee amounts, pricing and billing policies, quoting
procedures, marketing techniques and methods of obtaining
business, forecasts and forecast assumptions and volumes, and
future plans and potential strategies of Employer which have
been or are being discussed;
(f) Names of customers and their representatives, contracts and
their contents and parties, customer services, and the type,
quantity, specifications and contents of products and services
purchased, leased, licensed or received by customers of
Employer;
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June 20, 1997
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(g) Information provided to Employer by any actual or potential
customer, government agency, or other third party (including
businesses, consultants and other entities and individuals);
and
(h) Contracts with, or developed by Employer for use with, agents
of Employer, including, without limitation, the terms and
conditions thereof.
3.3 EXCLUSIONS FROM CONFIDENTIAL INFORMATION. "CONFIDENTIAL
INFORMATION" shall not include information publicly known other than as a
result of a disclosure by Employee in breach of Section 3.1, and the general
skills and experience gained during Employee's work with Employer which
Employee could reasonably have been expected to acquire in similar work with
another company. The phrase "PUBLICLY KNOWN" shall mean readily accessible to
the public in a written publication, shall not include information which is
only available by a substantial searching of the published literature or
information the substance of which must be pieced together from a number of
different publications and sources. The burden of proving that information or
skills and experience are not Confidential Information shall be on the party
asserting such exclusion.
3.4 COVENANTS OF EMPLOYEE. As a consequence of Employee's
acquisition or anticipated acquisition of Confidential Information, Employee
will occupy a position of trust and confidence with respect to Employer's
affairs and business. In view of the foregoing and of the consideration to be
provided to Employee, Employee agrees that it is reasonable and necessary that
Employee make the following covenants:
(a) At any time during or after the termination of the Employment
Period, Employee will not disclose Confidential Information to
any person or entity, either inside or outside of Employer,
other than as necessary in carrying out duties on behalf of
Employer, without obtaining Employer's prior written consent
(unless such disclosure is compelled pursuant to court order
or subpoena, and at which time Employee gives notice of such
proceedings to Employer), and Employee will take all
reasonable precautions to prevent inadvertent disclosure of
such Confidential Information. This prohibition against
Employee's disclosure of Confidential Information includes,
but is not limited to, disclosing the fact that any similarity
exists between the Confidential Information and information
independently developed by another person or entity, and
Employee understands that such similarity does not excuse
Employee from abiding by his covenants or other obligations
under this Agreement.
(b) At any time during or after the termination of the Employment
Period, Employee will not use, copy or transfer Confidential
Information other than as necessary in carrying out his duties
on behalf of Employer, without first obtaining Employer's
prior written consent, and will take all reasonable
precautions to prevent inadvertent use, copying or transfer of
such Confidential Information. This prohibition against
Employee's use, copying, or transfer of Confidential
Information includes, but is not limited to, selling,
licensing or otherwise exploiting, directly or indirectly, any
products or services (including data bases, written documents
and software in any form) which
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June 20, 1997
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embody or are derived from Confidential Information, or
exercising judgment in performing analyses based upon
knowledge of Confidential Information.
3.5 RETURN OF CONFIDENTIAL MATERIAL. Employee shall turn over to
Employer all originals and copies of materials containing Confidential
Information in the Employee's possession, custody, or control upon request or
upon termination of the Employee's employment with Employer. Employee agrees
to attend a termination interview with the Executive Compensation Committee of
Employer's Board of Directors to confirm turnover of such materials and to
discuss any questions the undersigned may have about his continuing obligations
under this Agreement.
3.6 INVENTIONS. Any and all inventions, products, discoveries,
improvements, copyrightable works, trademarks, service marks, ideas, processes,
formulae, methods, designs, techniques or trade secrets (collectively
hereinafter referred to as "INVENTIONS") made, developed, conceived or
resulting from work performed by Employee (alone or in conjunction with others,
during regular hours of work or otherwise) while he is employed by Employer and
which may be directly or indirectly useful in, or related to, the business of
Employer (including, without limitation, research and development activities of
Employer), or which are made using any equipment, facilities, Confidential
Information, materials, labor, money, time or other resources of Employer,
shall be promptly disclosed by Employee to Employer's Board of Directors, shall
be deemed Confidential Information for purposes of this Agreement, and shall be
Employer's exclusive property. Employee shall, upon Employer's request,
execute any documents and perform all such acts and things which are necessary
or advisable in the opinion of Employer to cause issuance of patents to, or
otherwise obtain recorded protection of right to intellectual property for,
Employer with respect to Inventions that are to be Employer's exclusive
property under this Section 3.6, or to transfer to and vest in Employer full
and exclusive right, title and interest in and to such Inventions; provided,
however, that the expense of securing any such protection of right to
Inventions shall be borne by Employer. In addition, Employee shall, at
Employer's expense, assist Employer in any proper manner in enforcing any
Inventions which are to be or become Employer's exclusive property hereunder
against infringement by others. Employee shall keep confidential and will hold
for Employer's sole use and benefit any Invention that is to be Employer's
exclusive property under this Section 3.6 for which full recorded protection of
right has not been or cannot be obtained.
ARTICLE 4
COVENANT NOT TO COMPETE; NON-INTERFERENCE
4.1 PROHIBITED EMPLOYEE ACTIVITIES. Employee agrees that except in
the ordinary course of his employment hereunder during the Employment Period,
Employee shall not during the Employment Period and for a period of two (2)
years thereafter (all references to Employer shall mean and include its
Affiliates as defined in Section 1.3):
(a) directly or indirectly, engage or invest in, own, manage,
operate, control or participate in the ownership, management,
operation or control of, be employed by, associated or in any
manner connected with, or render services or advice to, any
Competing Business (as defined below) provided, however, that
the Employee may
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June 20, 1997
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invest in the securities of any enterprise (but without
otherwise participating in the activities of such enterprise)
if such securities are listed on any national or regional
securities exchange or have been registered under Section
12(g) of the Securities Exchange Act of 1934;
(b) directly or indirectly, either as principal, agent,
independent contractor, consultant, director, officer,
employee, employer, advisor (whether paid or unpaid),
stockholder, partner or in any other individual or
representative capacity whatsoever, either for his own benefit
or for the benefit of any other person or entity, solicit,
divert or take away, any customers or clients of Employer; or
(c) directly or indirectly, either as principal, agent,
independent contractor, consultant, director, officer,
employee, employer, advisor (whether paid or unpaid),
stockholder, partner or in any other individual or
representative capacity whatsoever, either for his own benefit
or for the benefit of any other person or entity, either (i)
hire, attempt to hire, contact or solicit with respect to
hiring any employee of Employer, (ii) induce or otherwise
counsel, advise or encourage any employee of Employer to leave
the employment of Employer, or (iii) induce any distributor,
representative or agent of Employer to terminate or modify its
relationship with Employer.
"COMPETING BUSINESS" shall mean any individual, business, firm, company,
partnership joint venture, organization, or other entity whose products or
services compete, in whole or in part, at any time during the Employment Period
with the products or services of Employer or its Affiliates in any domestic or
international market area.
4.2 ESSENTIAL NATURE OF ARTICLE 4. It is acknowledged, understood
and agreed by and between the parties hereto that the covenants made by
Employee in Section 4.1 are an essential part of the Employer's consideration
for entering into this Agreement and that, but for the agreement of the
Employee to comply with such covenants, Employer would not have entered into
this Agreement.
4.3 NECESSITY AND REASONABLENESS OF ARTICLE 4. Employee hereby
specifically acknowledges and agrees that:
(a) Employer has expended and will continue to expend substantial
time, money and effort in developing (i) its business in which
the designs, plans, manuals and specifications are valuable
trade secrets, and (ii) a valuable list of customers and
agents, and information about their technical problems and
needs, purchasing habits, idiosyncracies and internal
purchasing procedures;
(b) Employee will, in the course of his Employment, be personally
entrusted with and exposed to the trade secrets of Employer;
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June 20, 1997
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(c) Employer, during the term of this Agreement and after its
termination, will be engaged in its highly competitive
business in which many firms, including Employer, compete;
(d) A substantial portion of Employer's business is conducted
outside the United States;
(e) Employer, pursuant to acquiring certain patents, technology
and associated trade secrets and know-how, will further
develop its worldwide business;
(f) Employee could, after having access to Employer's financial
records, contracts, patents, technology and associated trade
secrets and know-how, perform his obligations under this
Agreement, and after receiving further training by and
experience with Employer, and after reviewing Employer's trade
secrets, become a competitor;
(g) Employer will suffer great loss and irreparable harm if
Employee terminates his employment and enters directly or
indirectly, into competition with Employer;
(h) the temporal and other restrictions contained in this Article
4 are in all respects reasonable and necessary to protect the
business goodwill, trade secrets, prospects and other business
interests of Employer;
(i) the enforcement of this Agreement in general, and of this
Article 4 in particular, will not work an undue or unfair
hardship on Employee or otherwise be oppressive to him, it
being specifically acknowledged and agreed by Employee that he
has activities and other business interests and opportunities
which will provide him adequate means of support if the
provisions of this Article 4 are enforced after termination of
his employment with Employer; and
(j) the enforcement of this Agreement in general, and of this
Article 4 in particular, will neither deprive the public of
needed goods or services nor otherwise be injurious to the
public.
4.4 JUDICIAL MODIFICATION. Employee agrees that if a court of
competent jurisdiction determines that the length of time or any other
restriction, or portion thereof, set forth in this Article 4 is overly
restrictive and unenforceable, the court may reduce or modify such restrictions
to those which it deems reasonable and enforceable under the circumstances, and
as so reduced or modified, the parties hereto agree that the restrictions of
this Article 4 shall remain in full force and effect. Employee further agrees
that if a court of competent jurisdiction determines that any provision of this
Article 4 is invalid or against public policy, the remaining provisions of this
Article 4 and the remainder of this Agreement shall not be affected thereby,
and shall remain in full force and effect.
4.5 SURVIVAL OF COVENANTS. The covenants and agreements of Employee
set forth in this Article 4 are of a continuing nature and shall survive the
expiration, termination or cancellation of
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June 20, 1997
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the remainder of this Agreement regardless of the reason for such therefor and
shall survive the termination, if any, of the Employee's employment.
ARTICLE 5
TERMINATION
5.1 EMPLOYER TERMINATION
(a) Notwithstanding any other provision of this Agreement, at any
time during the Employment Period, including, without
limitation, the Initial Term, this Agreement and Employee's
employment hereunder shall terminate upon his death, and
Employer shall have the right, in its sole and absolute
discretion, to terminate this Agreement and Employee's
employment hereunder at any time by giving him written notice
of such termination (i) for "Cause" (as defined below), (ii)
if Employee shall fail to qualify for the fidelity bond
described in Section 1.3 within sixty (60) days from the date
of the Employer's written request thereunder, or (iii) if
Employee shall suffer a Disability (as defined below).
(b) "CAUSE" shall mean any of the following events:
(1) Employee's conviction or the entry of a plea of
guilty or nolo contendere or equivalent plea in a
court of competent jurisdiction of any crime or
offense involving moral turpitude or any felony;
(2) Employee's commission of an act of fraud upon
Employer or any of its Affiliates;
(3) Employee's willful misappropriation of funds or
property of Employer or any of its Affiliates;
(4) Employee's knowing engagement, without prior approval
by resolution of Employer's Board of Directors, in
any direct conflict of interest with Employer or any
of its Affiliates, in any activity which would
constitute a breach of Employee's representations,
covenants, agreements and obligations under Articles
3 and 4 of this Agreement, or which would otherwise
result in substantial injury to Employer's business
or financial condition;
(5) Employee's refusal to perform his duties under
Article 1 of this Agreement; or
(6) Employee's habitual use of alcohol or drugs which, in
the reasonable opinion of Employer, substantially
impairs the performance of Employee's duties.
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June 20, 1997
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(c) "DISABILITY" shall mean any mental or physical illness,
impairment or condition which, in the sole opinion of
Employer: (i) is of a nature that cannot reasonably be
controlled by Employee, (ii) significantly inhibits or impedes
Employee's ability to perform the services required under this
Agreement, and (iii) is likely to be either long-lasting in
duration or recurring from time to time.
5.2 TERMINATION BY EITHER PARTY. Subject to the provisions of
Section 5.3(a), Employer may at any time, for any reason, with or without
Cause, terminate this Agreement and Employee's employment hereunder. After
expiration of the Initial Term, Employee may terminate this Agreement and his
employment hereunder without regard to any reason for such termination. Each
of Employer's and Employee's option to terminate this Agreement pursuant to
this Section 5.2 shall be exercised by delivery of a written notice to Employee
or Employer, as applicable, specifying the effective date of such termination
which in no event shall be sooner than expiration of thirty (30) calendar days
following delivery of such written notice.
5.3 EFFECT OF TERMINATION.
(a) If Employer terminates this Agreement for any reason other
than pursuant to the terms of Section 5.1, then Employer shall
pay to Employee an amount equal to the greater of (a) his
total Base Salary for the remainder of the Employment Period,
or (b) which shall be the greater of (i)three months of his
Base Salary or (ii) one month of Base Salary for each full
year of service completed with Employer as of the date of
termination. Employer may, in its sole and absolute
discretion, make such payment in the manner and on the
timetable specified in Section 2.1, or in one lump sum on the
effective date of termination.
(b) Subject to the provisions of Section 5.3(a), upon termination
of this Agreement and Employee's employment hereunder by
either Employer or Employee, Employee shall have no right to
receive any compensation or benefits for any period subsequent
to the effective date of such termination, or for any period
prior to such date which have not been earned or vested as of
such date.
(c) Employer's right of termination shall be in addition to and
shall not affect Employee's rights and remedies under Articles
3 and 4, and Section 6.1 of this Agreement, and such rights
and remedies shall survive termination of Employee's
employment hereunder.
5.4 YEARS OF SERVICE. For purposes of this Article Five, any
reference to Employee's year(s) of service shall include (i) service with the
Employer, (ii) service with any Affiliate of Employer, and (iii) service with
any predecessor entity of Employer whether by merger, acquisition or operation
of law.
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June 20, 1997
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ARTICLE 6
MISCELLANEOUS
6.1 INJUNCTIVE RELIEF. Because of the unique nature of the
Confidential Information, Employee acknowledges, understands and agrees that
Employer will suffer immediate and irreparable harm if Employee fails to comply
with any of his obligations under Articles 3 or 4 of this Agreement, and that
monetary damages will be inadequate to compensate Employer for such breach.
Accordingly, Employee agrees that Employer shall, in addition to any other
remedies available to it at law or in equity, be entitled to temporary,
preliminary, and permanent injunctive relief to enforce the terms of Articles 3
and 4 without the necessity of proving inadequacy of legal remedies or
irreparable harm.
6.2 INDEMNIFICATION. Employer shall indemnify Employee in the same
manner and to the same extent that Employer is obligated to indemnify its
directors pursuant to Employer's Certificate of Incorporation and Bylaws, as
each may be amended or restated from time to time.
6.3 ACTION BY AND CONSENT OF EMPLOYER. All rights and remedies of
Employer hereunder shall be exercised by the Employer solely by and through
management authorized by Employer's Board of Directors.
6.4 NOTICES. Any notice, instruction, authorization, request or
demand required hereunder shall be in writing, and shall be delivered either by
personal delivery, by telegram, telex, telecopy or similar facsimile means, by
certified or registered mail, return receipt requested, or by courier or
delivery service, addressed to the parties hereto at the principal offices of
Employer at the address indicated beneath its signature on the execution page
of this Agreement, and also to Employee at his home address indicated beneath
his signature on the execution page of this Agreement, or at such other address
and number as a party shall have previously designated by written notice given
to the other party in the manner hereinabove set forth. Notices shall be
deemed given when received, if sent by facsimile means (confirmation of such
receipt by confirmed facsimile transmission being deemed receipt of
communications sent by facsimile means); and when delivered and receipted for
(or upon the date of attempted delivery where delivery is refused), if
hand-delivered, sent by express courier or delivery service, or sent by
certified or registered mail, return receipt requested.
6.5 AMENDMENT AND WAIVER. This Agreement may be amended, modified or
superseded only by written instrument executed by all parties hereto. Any
waiver of the terms, provisions, covenants, representations, warranties, or
conditions hereof shall be made only by a written instrument executed and
delivered by the party waiving compliance. Any waiver granted by Employer
shall be effective only if executed and delivered by a duly authorized
executive officer of Employer other than Employee. The failure of any party at
any time or times to require performance of any provisions hereof, shall in no
manner effect the right to enforce the same. No waiver by any party of any
condition or provision, or the breach of any term, provision, representation,
or warranty contained in this Agreement in one or more instances shall be
deemed to be or construed as a further or continuing waiver of any such
condition or breach or a waiver of any other condition or the breach of any
other term, provision, covenant, representation, or warranty.
Malhotra Employment Agreement
June 20, 1997
Page 12
13
6.6 SUCCESSORS AND ASSIGNS. All of the terms, provisions, covenants,
representations, warranties, and conditions of this Agreement shall bind, be
enforceable by, and inure to the benefit of, the parties hereto, but this
Agreement and the rights and obligations hereunder shall not be assignable or
delegable by any party; provided, however, that this Agreement and all of
Employer's rights and obligations hereunder may be assigned or delegated by it,
in whole, but not in part, to, and shall be binding upon and inure to the
benefit of, any of its successors or assigns, but such assignment or delegation
by Employer shall not relieve it of any of its obligations hereunder.
6.7 DEFINITIONS, GENDER AND CERTAIN REFERENCES. As used in this
Agreement, each parenthetically or quoted capitalized term in the introduction,
recitals and other Sections of this Agreement shall have the meaning so
ascribed to it. Whenever the context requires, the gender of all words used
herein shall include the masculine, feminine and neuter, and the number of all
words shall include the singular and plural. References to Articles or
Sections shall be to Articles or Sections of this Agreement unless otherwise
specified. The headings and captions used in this Agreement are solely for
convenient reference and shall not affect the meaning or interpretation of any
article, section or paragraph herein, or this Agreement. The terms "hereof,"
"herein" or "hereunder" shall refer to this Agreement as a whole and not to any
particular Section.
6.8 GOVERNING LAW AND SEVERABILITY. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the
internal law, and not the law of conflicts, of the State of Texas, except to
the extent that the General Corporation Law of the State of Wyoming or federal
law is explicitly made applicable by Section 1.5. Each party hereto hereby
acknowledges and agrees that it has had the opportunity to consult with its own
legal counsel in connection with the negotiation of this Agreement, and that it
has bargaining power equal to that of the other party hereto in connection with
the negotiation, execution and delivery of this Agreement. Accordingly, the
parties hereto agree that the rule of contract construction that an agreement
shall be construed against the drafter shall have no application in the
construction or interpretation of this Agreement. The invalidity of any
provision of this Agreement shall not affect any other provision of this
Agreement, which shall remain in full force and effect, nor shall the
invalidity of a portion of any provision of this Agreement affect the balance
of such provision.
6.9 EXPENSES. Each party hereto shall pay all of its respective fees
and expenses of attorneys, accountants and other persons employed by it in
connection with the resolution of any dispute between the parties hereto
arising out of or relating to this Agreement, except for any indemnification
obligations of Employer pursuant to Section 6.2.
6.10 ENTIRE AGREEMENT. No agreements or representations, oral or
otherwise, express or implied, have been made by any party hereto with respect
to the subject matter hereof that are not set forth expressly in this
Agreement. This Agreement supersedes and cancels any prior agreement,
arrangement or understanding entered into between Employer and Employee
relating to the subject matter hereof.
6.11 COUNTERPARTS. The parties may execute this Agreement in any
number of counterparts, each of which is an original, but all of which together
constitute one and the same instrument.
Malhotra Employment Agreement
June 20, 1997
Page 13
14
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the date first above written.
EMPLOYER:
AIR DRILLING SERVICES, INC.
By: /s/ XXXXX X. XXXX
-------------------------------------
Name: Xxxxx X. Xxxx
-------------------------------------
Title: Director
-------------------------------------
Address: X.X. Xxx 0000
-----------------------------------
Xxxxxx, Xxxxx 00000
-----------------------------------
-----------------------------------
EMPLOYEE:
/s/ XXXXXX XXXXXXXX
-------------------------------------------
Xxxxxx Xxxxxxxx:
Address: 0000 X. Xxxxx Xxxxxx
-----------------------------------
Xxxxxx, XX, 00000
-----------------------------------
{THIS SPACE INTENTIONALLY LEFT BLANK}
Malhotra Employment Agreement
June 20, 1997
Page 14
15
EMPLOYER ACKNOWLEDGMENT
STATE OF TEXAS )
)
COUNTY OF XXXXXX )
Before me, the undersigned authority, on this date personally appeared
Xxxxx X. Xxxx, President, of Air Drilling Services, Inc., a Wyoming
corporation, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, in the capacity stated, and as
the act and deed of said corporation.
Given under my hand and seal this 20th day of June, 1997.
Xxxxxx Xxxxx
----------------------------------
Notary Public in and for
[SEAL] The State of Texas
My Commission Expires: 00-00-00
XXXXXXXX XXXXXXXXXXXXXX
XXXXX XX XXXXX )
)
COUNTY OF XXXXXX )
Before me, the undersigned authority, on this date personally appeared
Xxxxxx Xxxxxxxx, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.
Given under my hand and seal this 20th day of June, 1997.
Xxxxxx Xxxxx
----------------------------------
Notary Public in and for
[SEAL] The State of Texas
My Commission Expires: 11-25-97
Malhotra Employment Agreement
June 20, 1997
Page 15
