EXHIBIT 10(29)
EMPLOYMENT AGREEMENT
This Agreement is made this 28th day of April, 1998 between TOWER AIR, INC.,
whose headquarters is located at Xxxxxx 00, XXX International Airport, Jamaica,
New York 11043 (hereinafter referred to as the "Company") and XXXXXX XXXXXX,
whose residence is located at 0000 Xxxxxxx Xxxx, Xxxxxxxx, Xxx Xxxx 00000
(hereinafter referred to as "Xxxxxx").
1. The Company agrees to employ Xxxxxx and Xxxxxx agrees to be employed
by the Company on a full-time basis, as follows:
a. Effective May 11, 1998, (the "effective date") Xxxxxx will serve
as CFO/Treasurer.
b. The employment contract will be for a period of 2 years from the
effective date and may be extended by mutual agreement if
approved by the Company.
2. Xxxxxx shall have and exercise authority and perform duties and
responsibilities consistent with his title in connection with the following
areas of responsibility: finance, revenue accounting and other areas related to
Tower as may be directed by the President of the Company.
3. Xxxxxx shall report and be responsible directly to the President of
the Company. He will liaise with other Company officials, directors, employees
and agents whenever necessary or appropriate.
4. For services performed at CFO/Treasurer, Xxxxxx will be compensated
at the rate of $175,000 per year payable in accordance with usual Company
procedures and practices.
5. Xxxxxx will participate in all Company benefits available for the
office he holds, including the executive incentive plan, the medical plan and
401k program. He will also be entitled to vacation time as well as addition days
due to any religious observance days and pass privileges available to Company
officers.
6. Effective the first day of the first month following six months of
employment, from the effective date, Xxxxxx will be issued options to purchase
5,000 shares of the common stock of the Company exerciseable in accordance with
all applicable laws and regulations at the closing purchase price of such shares
on the date the options are issued.
7. On Xxxxxx'x first anniversary date of the effective date of
employment, Xxxxxx will be issued options to purchase 5,000 shares of the common
stock of the Company exerciseable in accordance with all applicable laws and
regulations at the closing purchase price of such shares on the first
anniversary of the effective date of the employment contract. All such options
mentioned in (6) above and this paragraph (7) are subject to approval by the
Board of Directors and the Shareholders of Tower Air, Inc.
8. Xxxxxx shall be eligible for any merit and/or executive bonus
compensation when deemed appropriate and approved by Tower's Board of Directors
after the first anniversary of the effective date of employment.
9. During his employment as CFO/Treasurer, Xxxxxx'x employment may be
terminated by the Company without any breach of this agreement under the
circumstances set forth below, 9a, 9b and 9c:
(a) Death or Disability. (i) Xxxxxx'x employment hereunder shall
automatically terminate upon the death of Xxxxxx. (ii) If, as a
result of Xxxxxx'x physical or mental incapacity, causing
Xxxxxx to be absent from his duties for any four (4)
consecutive months, his employment may be terminated.
(b) Cause. The Company may terminate Xxxxxx'x employment at any
time for Cause. For this agreement "cause" shall be defined as
willful failure to follow instructions of a significant nature,
any act constituting material dishonesty, misfeasance or
malfeasance or conduct that is criminal, fraudulent or grossly
negligent.
(c) If, in the unlikely event, Xxxxxx'x employment as CFO/Treasurer
is terminated by the Company for reasons other than cause, the
Company will pay Xxxxxx six month's salary as severance pay.
Xxxxxx will be entitled to no payments or benefits or
compensation if the termination of his employment is for cause.
10. Xxxxxx agrees that for a period of one year following his voluntary
termination of his employment with the Company, he will not perform services for
any person or company engaged in a business which competes directly with the
Company in the U.S.-Tel Aviv market.
11. The parties agree that regardless of where executed this Agreement
shall be construed in accordance with the laws of the State of New York, U.S.A.
(without regard to the conflict of laws provisions of such laws), that any
disputes against the Company arising hereunder shall be litigated solely in the
state or federal courts located in the State of New York and that neither party
will object to the jurisdiction or venue of such courts.
12. The terms of this Agreement are severable and if any provision
hereof is found by a competent court not to be enforceable, all other provisions
hereof shall remain in effect and construed to give maximum effect to the
overall intent of the parties.
13. This Agreement contains the entire understanding of the parties and
supersedes any other previous oral or written agreements made by the parties.
This Agreement may not be changed orally, but only in writing signed by both
parties.
14. The terms of this Agreement shall be kept confidential by both
parties, except as may be required by law.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first written above.
/s/ Xxxxxx Xxxxxx /s/ Xxxxx X. Xxxxxxx
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XXXXXX XXXXXX XXXXX X. XXXXXXX
PRESIDENT/
EXECUTIVE VICE PRESIDENT-OPERATIONS
