EXHIBIT 10.2
EMPLOYMENT CONTRACT
By this Agreement, iNet Technology Group Incorporated, a Florida
corporation, referred to in this Agreement as "Employer", located at 000 Xxxxx
Xxxxx Xxxx, Xxxxx X, Xx. Xxxxxx Xxxxx, Xxxxxxx, employs Xxxxxxx X. Xxx, referred
to in this Agreement as "Employee", who accepts employment on the following
terms and conditions:
I. TERM OF EMPLOYMENT
By this Agreement, Employer employs Employee, and Employee accepts
employment with Employer, as the President and Chief Executive Officer of
Employer, with such employment to begin on January 1, 2000 and continue until
this Agreement is terminated, as provided hereinafter.
II. COMPENSATION
As compensation for the services rendered under this Agreement,
Employee shall be paid by Employer a salary of at least $144,000 per year,
payable in equal monthly salary payments, minus appropriate deductions for
income taxes and benefit plan payments, on the 15th day of each month during the
term of this Agreement. The amount paid is to be prorated for any partial
employment period. In addition, Employee shall be compensated for his service as
a member of Employer`s Board of Directors in the same amounts, if any, as other
Board members. Employee's base salary ($144,000 during the year 2000) shall be
increased annually, as follows:
(1) Each year on December 31, Employee's base salary for the next year
shall be determined by multiplying that year's base salary by a
multiplier calculated by dividing the closing price of the Employer's
stock by the closing price of the Employer's stock on the previous
December 31. For the purposes of the calculation for December 31, 2000,
the previous year's closing price shall be considered to be $12.50 per
share. Thus, if the stock of the Employer closes at $25.00 per share on
December 31, 2000, Employee's base salary for the year 2001 shall be
$288,000, calculated by multiplying the year 2000 base salary of
$144,000 by $25 (the 12/31/00 closing price) and dividing the product
by $12.50 (the previous year's closing price). If the closing price
should decrease in any year of this Agreement, or if the closing price
should remain the same, then no adjustment shall be made in Employee's
base salary except any cost-of-living increase as hereinafter
described. Stock prices used shall first be adjusted for any stock
splits.
(2) As soon as practicable after January 1 of each year during the term of
this Agreement, Employee shall receive a cost of living increase based
upon the cost of living increase during the previous year published by
the United States Department of Labor for the Standard Metropolitan
Statistical Area in which Employee resides. If the cost of living
figures decrease or remain the same for any year during the term of
this Agreement, then no cost of living adjustment will be made for that
year.
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III. DUTIES OF EMPLOYEE
Employee is employed as the President and Chief Executive Officer of
Employer and shall be provided with an office suitable for his position at
Employer`s principal place of business and home office, which is currently
located at 000 Xxxxx Xxxxx Xxxx, Xxxxx X, Xx. Xxxxxx Xxxxx, Xxxxxxx, and at such
other locations as Employer and Employee may agree from time to time. Employee
shall be responsible for the overall operations of Employer, to serve as an
officer and director of Employer and to perform such other and further duties of
a similar nature as Employer and Employee may agree from time to time. Employee
shall report directly to the Board of Directors, and all of the other employees
of Employer shall report to Employee, directly or indirectly. Employee's duties
may not be changed without Employee's consent.
IV. INDEMNIFICATION
Employer agrees to fully indemnify, defend save and hold Employee
harmless from any and all liabilities, claims, judgements, expenses and causes
or theories of action arising out of the performance by Employee of the duties
of his employment except as such may have arisen as a result of Employee`s own
fraudulent or criminal conduct. This indemnification obligation is intended to
be construed as broadly as is allowed under the laws of the State of Florida.
V. BENEFITS, STOCK OPTIONS AND STOCK BONUSES
Employer agrees to provide to Employee all employee benefits such as
health insurance, retirement or 401k plan, vacation time, disability insurance,
life insurance and any other similar benefits on the same basis that Employer
chooses to provide such benefits to other officers of Employer. In addition,
Employer hereby grants to Employee the following stock bonuses:
During the term of this Agreement, Employee shall be granted up to a
total of 6,000,000 shares of Employer's stock in 1,000,000 increments the first
time the stock of Employer reaches each of the following trading levels per
share, after said options and prices having been adjusted for any stock splits:
1. $ 15.00
2. $ 18.00
3. $ 21.60
4. $ 25.92
5. $ 31.10
6. $ 37.32
VI. TERMINATION
This Agreement shall terminate on the occurrence of any one of the following
events:
1. The death of Employee.
2. The voluntary resignation of Employee.
3. Discontinuance of Employer`s operations, in which case this Agreement
shall cease and terminate on the last day of the month in which
Employer ceases operations.
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4. The termination of Employee's employment by Employer because of
Employee's fraudulent or criminal conduct.
In the event this Agreement is terminated for any reason except for
Employee's fraudulent or criminal conduct, Employer agrees to issue to Employee
all unissued stock grants described in Article V. above as if the stock had
reached the per share trading levels described therein, and Employer agrees to
pay to Employee on the date of the termination severance pay in an amount equal
to one year of Employee's base salary at Employee's base salary level then in
effect. In the event this Agreement is terminated as a result of Employee's
fraudulent or criminal conduct, Employer agrees to issue to Employee 1,000,000
shares of Employer's stock and pay to Employee an amount equal to one year of
Employee's base salary at Employee's base salary level then in effect.
VII. GENERAL PROVISIONS
1. CHOICE OF LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.
2. ENTIRETY OF AGREEMENT. This Agreement supersedes all other agreements,
either written or oral, between the parties to this Agreement with
respect to the employment of Employee by Employer and contains all of
the covenants and agreements between the parties with respect to such
employment.
3. MODIFICATION. This Agreement shall not be amended, modified or altered
in any manner except in a writing signed by all parties.
4. ASSIGNMENT. This Agreement, any portion of this Agreement, or any right
or privilege contained or implied in this Agreement shall not be
assigned in any manner whatsoever.
Executed at ____________________________________________________________________
on ______________________________, 1999.
EMPLOYER: EMPLOYEE:
iNet Technology Group Incorporated Xxxxxxx X. Xxx
By:______________________________ ______________________________
Xxxxxxx X. Xxx, CEO & President Xxxxxxx X. Xxx, as Employee
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