EXHIBIT 10.1
EMPLOYMENT AGREEMENT
(Amended and Restated)
THIS EMPLOYMENT AGREEMENT (this "Agreement"), shall be effective the
15th day of April, 1994, by and between Laboratory Specialists of America,
Inc. (the "Company"), an Oklahoma corporation, and Xxxx Xxxxxxxxx, an
individual ("Xxxxxxxxx").
WHEREAS, the parties hereto entered into this Employment Agreement on
April 15, 1994, which was amended and restated on September 9, 1994, and
April 23, 1996;
WHEREAS, the parties have determined that it is in the best interest of
the Company that this Agreement be further amended to extend the term of this
Agreement, effective as of the date hereof;
NOW, THEREFORE, for and in consideration of the conditions hereinbelow
to be performed on the part of the respective parties hereto, and in
consideration of the mutuality thereof, the parties hereto agree as follows:
1. TERM OF EMPLOYMENT. The Company hereby agrees to employ Xxxxxxxxx,
and Xxxxxxxxx hereby agrees to serve the Company, during the period beginning
on April 15, 1996 and ending on April 15, 2000 (the "Period of Employment"),
or on such earlier date as provided in Sections 4 and 5 hereof; provided,
however, that the Period of Employment shall be extended an additional one
year period to next April 15 immediately following the end of each full year
of employment with the Company that Xxxxxxxxx completes pursuant to and
accordance with this Agreement.
2. DUTIES. Substantially all of the duties and responsibilities of
Xxxxxxxxx, subject to such travel as the duties of Xxxxxxxxx hereunder may
reasonably require, shall be performed by Xxxxxxxxx at and from the corporate
offices of the Company in Oklahoma City, Oklahoma.
2.1 During the Employment Period, Xxxxxxxxx shall devote such time,
attention, skill, energy and best efforts to the duties assigned to him
from time to time by management and/or the Board of Directors of the
Company, and shall, but without obligation hereunder, serve the Company in
the executive officer positions to which he may be elected or appointed by
the Board of Directors of the Company, subject to acceptance by Xxxxxxxxx
of such executive officer position or positions. Notwithstanding the
foregoing, Xxxxxxxxx shall be required to devote not less than 50 percent
of his full business time, attention, skill, energy and efforts to the
performance of his duties hereunder; provided, however, that Xxxxxxxxx may
engage in any other employment or pursuit of other endeavors which does not
conflict with his ability to perform his duties to the business interests
of the Company, provided that such other employment or pursuit of other
endeavors does not violate the duty of loyalty and care which Xxxxxxxxx has
to the Company by reason of this Agreement or in his capacity as an
executive officer of the Company.
2.2 As an employee of the Company, Xxxxxxxxx shall be subject to the
overall supervision and instructions of management of the Company and, if
applicable, that are associated with the executive officer position or
positions held by Xxxxxxxxx which shall be subject to the overall
supervision and instructions of the Board of Directors to the Company.
3. COMPENSATION AND OTHER BENEFITS. During the Employment Period, the
Company shall pay or provide to Xxxxxxxxx and Xxxxxxxxx shall be entitled to
receive or have maintained for his benefit, the following:
3.1 Effective April 15, 1996, the Company shall compensate Xxxxxxxxx
for the services to be rendered by him hereunder at the rate of one hundred
twelve thousand five hundred dollars ($112,500) per year, payable in equal
semi-monthly installments on the first and fifteen day of each month,
commencing on May 1, 1996.
EMPLOYMENT AGREEMENT PAGE 1
3.2 From time to time the Company may pay cash bonuses (but not in
excess of 10 percent of the net income of the Company during the applicable
fiscal year of the Company determined in accordance with generally accepted
accounting principles) or grant stock options to its executive officers as
determined by the Board of Directors (or the Compensation Committee
established by the Board of Directors). To the extent that bonuses or
stock options are paid or granted by the Board of Directors to its
executive officers, Xxxxxxxxx shall be deemed to be a member of the bonus
group or group to which stock options are granted, and his bonus or stock
option grants shall be determined in the same manner as are the bonuses or
stock option grants of other executives in the group.
3.3 Xxxxxxxxx is hereby authorized to incur reasonable expenses for
the promotion of the Company's business, including entertainment, travel
and similar expenses, and he shall be reimbursed therefore by the Company
upon his presentation of itemized accounts of such expenditures.
3.4 The Company shall provide to Xxxxxxxxx health and disability
insurance benefits comparable to those provided to the executive officers
of the Company either as a group or individually.
3.5 Xxxxxxxxx shall be entitled to reasonable periods of vacation
with pay in each year, and reasonable periods of sick leave with pay
commensurate with his position, in accordance with Company policy as
established by the Board of Directors.
3.6 The Company shall provide to Xxxxxxxxx and maintain insurance, at
the Company's cost and expense, covering the life of Xxxxxxxxx in the face
amount of five hundred thousand dollars ($500,000), the proceeds of which
shall be payable to such beneficiary that Xxxxxxxxx shall designate or in
the event of failure to designate a named beneficiary shall be payable to
the estate of Xxxxxxxxx.
3.7 The Company shall pay to Xxxxxxxxx an automobile allowance of
five hundred dollars ($500) per month, payable on the fifteen day of each
month while employed pursuant to this Agreement, and shall provide at the
sole cost and expense of the Company a mobile phone to assist Xxxxxxxxx in
the performance of his duties and responsibilities as an employee and, if
applicable, executive officer of the Company.
4. DISABILITY OR DEATH.
4.1 In the event the Board of Directors of the Company determines in
good faith that Xxxxxxxxx is unable, because of physical or mental illness
or disability, to render services of the character contemplated hereby and
that such disability reasonably may be expected to be permanent or to
continue for a period of at least six (6) consecutive months (or for
shorter periods totaling more than six (6) months during any period of
eighteen (18) consecutive months), in such event the Board of Directors of
the Company may elect to terminate the employment of Xxxxxxxxx hereunder
upon written notice by the Company to Xxxxxxxxx effective on the next first
or fifteenth day of the month following the date of such notice. At any
time and upon reasonable request therefor by the Company, Xxxxxxxxx shall
submit to medical examination by a physician designated by the Company in
Oklahoma City, Oklahoma, for the purpose of determining the existence,
nature and extent of any such disability. In the event the Board of
Directors elects to terminate the employment of Xxxxxxxxx pursuant to this
Section 4.1, Xxxxxxxxx shall be entitled to receive any amount of
compensation determined pursuant to Section 3.1 up to the date of the
termination of the employment of Xxxxxxxxx payable on the dates established
pursuant to Section 3.1.
4.2 In the event Xxxxxxxxx shall die during the Employment Period,
this Agreement shall terminate effective on the next first or fifteenth day
of the month following the date of death, and the Company shall pay to the
spouse of Xxxxxxxxx, or if unmarried at the time of his death, to the
estate of Xxxxxxxxx, the compensation payable to Xxxxxxxxx pursuant to
Section 3.1 for a period of three (3) months following the effective date
of termination of this Agreement pursuant to this Section 4.2, payable on
the dates provided for such compensation payment thereunder.
EMPLOYMENT AGREEMENT PAGE 2
4.3 In the event of termination of this Agreement pursuant to Section
4.1 and/or Section 4.2 of this Agreement, Xxxxxxxxx (or his spouse or if
unmarried on the date of his death his estate) shall be entitled to receive
accrued and unpaid expense reimbursements, automobile allowance and any
unpaid bonus amounts awarded to Xxxxxxxxx prior to such termination and
stock option grants awarded to Xxxxxxxxx prior to such termination
exercisable in accordance with the terms of such stock option grants.
5. TERMINATION FOR CAUSE. In the event the Board of Directors of the
Company determines in good faith that Xxxxxxxxx is guilty of gross negligence
or fraud materially injurious to the Company, the Company may terminate this
Agreement, and all obligations hereunder shall thereupon terminate.
6. NON-COMPETITION. During the Employment Period, or, if longer, the
period of employment of Xxxxxxxxx by the Company, Xxxxxxxxx will not engage
in competition with the Company, either directly or indirectly, in any manner
or capacity as an employee or executive officer of a competitor company in
any phase of the business carried on by the Company at any time.
7. CONFIDENTIALITY. During the Employment Period, or, if longer, the
period of employment of Xxxxxxxxx by the Company, and for a period of three
(3) years thereafter, Xxxxxxxxx will not divulge to anyone, other than the
Company or persons designated by the Company in writing, any confidential
material information directly or indirectly useful in any aspect of the
business of the Company or any of its subsidiaries, as conducted from time to
time, as to which Xxxxxxxxx is now, or at any time during employment shall
become, informed and which is not then generally known to the public or
recognized as standard practice.
8. CERTAIN PROVISIONS TO SURVIVE TERMINATION; ETC. Notwithstanding any
termination of his employment under this Agreement, Xxxxxxxxx, in
consideration of his employment hereunder to the date of such termination,
shall remain bound by the provisions of Section 6 and 7, and consequently, in
addition to all other remedies that may be available to it, the Company shall
be entitled to injunctive relief for any actual or threatened violation of
such Sections.
9. NON-ASSIGNABILITY. Neither party hereto shall have the right to
assign this Agreement or any rights or obligations hereunder without the
written consent of the other party.
10. ARBITRATION. Any controversy or claim arising out of or relating
to this Agreement, or the breach thereof, shall be settled by arbitration in
accordance with the Rules of the American Arbitration Association and
judgment upon the award rendered by the arbitrator or arbitrators may be
entered in any court having jurisdiction thereof. The arbitration
proceedings shall be conducted in Oklahoma City, Oklahoma unless otherwise
agreed by the parties hereto. The arbitrator or arbitrators shall be deemed
to possess the powers to issue mandatory orders and restraining orders in
connection with such arbitration; provided, however, that nothing in this
Section 10 shall be construed so as to deny the Company the right and power
to seek and obtain injunctive relief in a court of equity for any breach or
threatened breach by Xxxxxxxxx of any of his covenants contained in Sections
6 and 7 hereof.
11. NOTICE. All notices required or permitted to be given hereunder
shall be in writing and shall be deemed to have been given forty-eight (48)
hours after depositing in the United States mail, certified mail, postage
prepaid, addressed to the party to receive such notice at the address set
forth hereinbelow or such other address as either party may give to the other
in writing pursuant to written notice pursuant to this Section:
If to Xxxxxxxxx: Xx. Xxxx Xxxxxxxxx
0000-X Xxxxxxxxx Xxx
Xxxxxxxx Xxxx, Xxxxxxxx 00000
If to the Company: Laboratory Specialists of America, Inc.
0000-X Xxxxxxxxx Xxx
Xxxxxxxx Xxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxxx
EMPLOYMENT AGREEMENT PAGE 3
12. GENERAL. The terms and provisions herein contained (i) constitute
the entire Agreement between the Company and Xxxxxxxxx with respect to the
subject matter hereof, (ii) may be amended or modified only by a written
instrument executed by the parties hereto, and (iii) shall be construed and
enforced in accordance with the laws in effect in the State of Oklahoma
without regard to its conflicts of law provisions. Failure by a party hereto
to require performance of any provision of this Agreement shall not affect,
impair or waive such party's right to require full performance at any time
thereafter.
It is acknowledged that the furniture, equipment and artwork in the
corporate offices of the Company in Oklahoma City, Oklahoma are the property
of Xxxxx X. Xxxxxx and Xxxxxxxxx.
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute
one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, as amended and restated, on the 26th day of September, 1997, with
an effective date of the 15th day of April, 1996.
"Company" LABORATORY SPECIALISTS OF AMERICA, INC.
By: /S/ XXXXX X. XXXXXX
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Xxxxx X. Xxxxxx, President
"Xxxxxxxxx" /S/ XXXX XXXXXXXXX
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Xxxx Xxxxxxxxx
EMPLOYMENT AGREEMENT PAGE 4
