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EXHIBIT 10.14
EMPLOYMENT AGREEMENT DATED AS OF DECEMBER 2, 1996 BETWEEN THE COMPANY
AND XXXXX X. XXXXXX
EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (the "Agreement"), dated as of December 2,
1996, is between CIAO CUCINA CORPORATION (the "Company") and XXXXX XXXXXX
("Executive").
RECITALS:
WHEREAS, the Company wishes to assure itself of the substantial skill
and abilities of Executive for the term provided in this Agreement, and
Executive is willing to be employed by the Company on a full-time basis for such
term; and
WHEREAS, the Board of Directors of the Company (the "Board") has
determined that the best interests of the Company would be served by employing
Executive on the terms of this Agreement;
NOW, THEREFORE, the parties hereby agree as follows:
1. Employment and Position. The Company shall employ Executive and
Executive shall serve as Executive Vice-President and Chief Operating Officer
for the term stated in Paragraph 2, upon the terms and conditions of this
Agreement. Executive shall report to the President of the Company and perform
those services consistent with such position and as may further be determined
from time to time by the Board. The Company shall during the term of this
Agreement include Executive on the slate of directors submitted to the
shareholders for vote, and shall recommend their vote in favor of Executive as
director. During the term of his employment, Executive will devote substantially
all of his business time and efforts to the performance of his duties under this
Agreement.
2. Term. The term of Executive's employment under this Agreement shall
commence as of the date hereof, and shall terminate on the third anniversary of
such date; provided that if this Agreement has not been earlier terminated as
provided herein, the term of this
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Agreement and Executive's employment hereunder shall automatically be extended
for consecutive one year terms unless either party notifies the other to the
contrary in writing at least 90 days prior to the expiration of the then
applicable term.
3. Compensation.
(a) Base Salary. The Company shall pay Executive during the term of
this Agreement a minimum annual base salary of $109,200.00, payable biweekly.
This salary may be increased in the discretion of the Board based upon the
Company's achievement of net earning goals reasonably established by the Board.
(b) Bonus. Upon the execution hereof, Executive has received a
bonus of $15,000 as compensation for lost benefits resulting from his acceptance
of his position with the Company. In addition, Executive shall receive a cash
bonus if and to the extent the Company achieves the budgeted net earning levels
reasonably established by the Board. Such bonus, if any, shall at a minimum
equal 25% of Executive's then annual base salary and shall be paid at least
annually payable within 45 days after the end of each fiscal year.
(c) Reimbursement of Expenses. Upon delivery of receipts or other
reasonable evidence, the Company shall reimburse Executive for all reasonable
travel and other expenses incurred by him in the performance of his obligations
under this Agreement.
(d) Car Allowance. The Company shall provide Executive with the use
of an automobile reasonably acceptable to Executive during the term of this
Agreement. All costs and expenses related thereto, including parking, gas,
maintenance and insurance (property and general liability) shall be paid by the
Company; provided, that the Company shall not be responsible for: (i) any
parking, moving or other violations incurred by Executive, or any increased
insurance costs as a result thereof; or (ii) any costs or expenses arising out
of the negligence or misconduct of Executive.
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4. Vacation and Sick Leave.
(a) During the term of his employment under this Agreement,
Executive shall be entitled to an annual vacation, without loss of pay, of 4
weeks. Unused vacation time shall not accrue to subsequent years, and upon any
termination of his employment hereunder for any reason, all unused vacation time
shall immediately be canceled.
(b) Executive shall be entitled to sick leave in the form of salary
continuation as established by the Company from time to time for salaried
employees of the Company.
5. Other Fringe Benefits. Executive shall further be entitled to such
other fringe benefits as may be established by the Company from time to time
for salaried employees of the Company.
6. Early Termination.
(a) The term of Executive's employment under this Agreement may be
terminated by the Company prior to the date on which it would otherwise expire
only for "cause" (as hereinafter defined) or upon the following conditions:
(i) If because of illness, physical or mental disability, or
other incapacity Executive shall (A) fail for a period or periods aggregating
six (6) months in any calendar year to render the services provided for herein
in any material respect, or (B) become in the good faith judgement of the
Company permanently unable to perform the services provided hereby, then the
Company may terminate Executive's employment under this Agreement by written
notice to Executive, effective upon the provision of such notice without any
further obligation on the part of the Company, except that the Company shall pay
Executive at the time of such termination such portion of his base salary and
bonus provided for hereunder as may be accrued but unpaid at the end of the
month of his termination.
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(ii) If Executive dies while employed hereunder, this Agreement
shall terminate without any further obligation on the part of the Company,
except that the Company shall pay Executive's estate within 10 days after death
such portion of his base salary provided for hereunder as may be accrued but
unpaid at the end of the month of his death.
(b) If the Company terminates Executive's employment under this
Agreement for "cause" (as hereinafter defined), or if Executive terminates his
employment hereunder for any reason other than "good reason" (as defined
herein), Executive's employment under this Agreement shall automatically
terminate without any further obligation on the part of the Company other than
to pay any base salary earned through the date of termination.
(c) If a "good reason" (as defined herein) exists for Executive to
terminate his employment hereunder, Executive may terminate his employment
hereunder by providing written notice to the Company. If Executive terminates
his employment hereunder for "good reason" (as defined herein), the Company
shall pay to Executive within 10 days after notice of termination is received by
the Company an amount equal to the then present value (using a discount rate of
6%) of the sum of all base salary to which he would otherwise have been entitled
for the remainder of the then applicable term, plus any bonus related to the
then fiscal year. As used herein, and in addition to the provisions of Paragraph
3(e) hereof, "good reason" means: (i) the failure or inability of the Company to
pay Executive the salary required hereunder; (ii) the dissolution of the
Company; (iii) a cessation by the Company of business operations; or (iv) an
Event of Bankruptcy, which is defined as the Company doing any of the following:
(1) makes an assignment for the benefit of creditors; (2) files a voluntary
petition in bankruptcy; (3) is adjudicated a bankrupt or insolvent; (4) files a
petition or answer in any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief proceeding under any
law or rule that seeks for itself any of those types of relief; (5) files an
answer or other pleading admitting or failing to contest the material
allegations of a petition filed against it in any
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proceeding seeking the relief described in clause (4) herein; (6) a period of
120 days has elapsed after the commencement against the Company of any
proceedings seeking the relief described in clause (4) above, and the proceeding
has not been dismissed; (7) a period of 90 days has elapsed after the
appointment of a trustee, receiver, or liquidator for the Company or for all or
any substantial part of its properties without the Company's consent to
acquiescence, and the appointment has not been vacated or stayed; or (8) a
period of 90 days has elapsed after the expiration of that stay, and the
appointment has not been vacated.
(d) If the Company terminates Executive's employment under this
Agreement for any reason other than: (i) for "cause" (as hereinafter defined),
or (ii) pursuant to paragraph 6(a) above, the Company shall pay to Executive
upon such termination an amount equal to the then present value (using a
discount rate of 6%) of the sum of all base salary to which he would otherwise
have been entitled for the remainder of the then applicable term, plus any bonus
related to the then fiscal year.
(e) As used herein, the term "cause" means: (i) the breach by
Executive of any material term hereof; (ii) willful misconduct; (iii) conviction
of a felony; (iv) habitual intoxication; (v) drug addiction; (vi) adjudication
as an incompetent; (vii) misappropriation of corporate funds or commission of
any other act of dishonesty with respect to his performance hereunder; (viii)
dereliction of duties; or (ix) the intentional refusal to comply with a
reasonable directive of the President or the Board.
7. Sale of Company. If and to the extent all or substantially all
assets of the Company are sold or the Company consummates a merger and is not
the surviving entity, the purchaser or surviving entity shall assume all
obligations under this Agreement; provided, that Executive shall have the
option, exercisable by providing written notice to the Company within 60 days
after the closing of such purchase or merger, to terminate this Agreement and
such termination shall be deemed to be for a "good reason" as hereinafter
defined.
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8. Federal Income Tax Withholding. The Company shall withhold from any
benefits payable under this Agreement all federal, state, city, or other taxes
required to be withheld pursuant to any law or governmental regulation or
ruling.
9. Entire Agreement. This Agreement contains the entire understanding
between the parties with respect to the subject matter hereof and supersedes any
prior or contemporaneous written or oral agreements or understandings between
the Company and Executive.
10. Binding Agreement. This Agreement shall be binding upon, and inure
to the benefit of, Executive and the Company and their respective permitted
successors and assigns.
11. Modification and Waiver.
(a) Amendment of Agreement. This Agreement may not be modified or
amended except by an instrument in writing signed by both parties.
(b) Waiver. No term or condition of this Agreement will be deemed
to have been waived, nor will there be an estoppel against the enforcement of
any provision of this Agreement, except by written instrument of the party
charged with such waiver or estoppel. No such written waiver shall be deemed a
continuing waiver unless specifically stated therein, and each waiver shall
operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act
other than that specifically waived.
12. Severability. If, for any reason, any provision of this Agreement
is held invalid, such invalidity shall not affect any other provision of this
Agreement not held invalid, and each such other provision shall, to the full
extent consistent with law, continue in full force and effect. If any provision
of this Agreement is held invalid in part, such invalidity shall not affect the
rest of such provision ,which, together with all other provisions of this
Agreement, shall continue in full force and effect to the full extent consistent
with law.
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13. Headings. The headings of Paragraphs herein are included solely
for convenient reference and shall not affect the meaning or interpretation of
any of the provisions of this Agreement.
IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its officers thereunto duly authorized, and Executive has signed
this Agreement, all as of the day and year first above written.
Witnessed By: CIAO CUCINA CORPORATION
/s/ Xxxx Xxxxx By: /s/ Xxxx X. Xxxxxxxxxxx
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Xxxx X. Xxxxxxxxxxx
/s/ Xxx Xxxxx President
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EXECUTIVE:
/s/ Xxxx Xxxxx /s/ Xxxxx Xxxxxx
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XXXXX XXXXXX
/s/ Xxx Xxxxx
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