Exhibit 10.1
EMPLOYMENT CONTRACT
WHEREAS, Velocity Asset Management Inc., ( the "Company") desires to employ
Xxxxx X. Xxxxxxxxx (the "Executive") as its Chief Financial Officer and Chief
Legal Officer;
WHEREAS, the Company desires to provide the Executive with compensation and
benefits that are appropriate for a senior executive and desires to create
incentives for the Executive to remain in the employ of the Company; and
WHEREAS, the Company and the Executive desire that the terms and conditions of
the Executive's employment be set forth in an employment contract.
NOW, THEREFORE, the Company and Executive, as of the effective date hereof,
agree as follows:
1. DUTIES. The Company shall employ and the Executive agrees to serve as Chief
Financial Officer and Chief Legal Officer of the Company. During the Term of
Employment, the Executive shall devote his full business and professional time
to the Company.
2. TERM OF CONTRACT. The term of the employment contract shall commence on the
Effective Date hereof, and shall continue in effect until September 1, 2007 (the
"Term of Employment").
3. BASE SALARY. The Company shall pay the Executive an annual base salary of not
less than $150,000 (payable on at least a bi-weekly basis) for the period
beginning on September 1, 2004 and ending on September 1, 2005, during each
subsequent year of the Term of Employment, an annual salary at least equal to
the Executive's salary for the immediately preceding year plus an amount
calculated in a manner at least as favorable to the Executive as the manner in
which the pay increases, if any, for other executives are calculated as
determined in the sole discretion of the Board of Directors. The said annual
salary shall be reviewed by the Board of Directors as of September 1 of each
year during the Term of Employment.
4.ANNUAL BONUS. The Executive shall be eligible to receive an annual bonus based
on the Company's fiscal year performance, as determined in the sole discretion
of the Company's Board of Directors. Such Annual Bonus shall be calculated in
the same manner in which the Annual Bonus for other senior level executive
employees is calculated by the Board of Directors. Bonuses are based on fiscal
year performance and paid in December based on the achievement of performance
objectives determined by the Board of Directors each year.
5. EQUITY INCENTIVES. The Executive shall be eligible to receive equity
securities pursuant to the Company's 2004 Equity Incentive Plan. The amount,
type and terms of the equity securities to be granted to Xx. Xxxxxxxxx will be
determined by the Company's board of directors and the Executive.
6. BENEFITS. The Executive shall be entitled to participate in all employee
benefit plans or programs of the Company (including life, health, disability and
hospitalization insurance, and other health care benefits, including medical,
hospital and surgical benefits and health care benefits for the Executive's
family), generally available to any of its senior level executive employees.
Details of these programs will be provided separately.
7. RETIREMENT BENEFITS. The Executive shall be entitled to participate in all
employee pension and retirement plans or programs of the Company, generally
provided available to its other senior level executive employees. Details of
these programs will be provided separately.
8. ABSENCES. During the Term of Employment, the Executive shall be entitled to
paid vacation and such other paid absences, whether for holidays, illness,
personal time or any similar purposes, in accordance with the most favorable
policies, practices and procedures of the Company for its other senior level
executive employees.
9. REIMBURSEMENT OF EXPENSES. The Company shall reimburse the Executive for all
authorized and approved expenses incurred and paid by him in the course of the
performance of his duties and consistent with policies and rules of the Company
relating to the reimbursement of such business expenses.
10. TERMINATION BY THE COMPANY. If the Executive is terminated by the Company
other than for "cause" the Executive will receive a payment equal to one year of
the then current base salary. The Executive will also be allowed to exercise all
stock grants vesting within one year from date of termination.
11. SUCCESSORS AND ASSIGNS. This agreement shall be binding upon the Company and
its successors and assigns.
12. Effective Date. September 8, 2004
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be
effective as of the Effective Date written above.
By: /s/ XXXX X. XXXXXXXX
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VELOCITY ASSET MANAGEMENT INC.
Name: Xxxx X. Xxxxxxxx
Title: President and CEO
By: /s/ XXXXX X. XXXXXXXXX
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EXECUTIVE
Name: Xxxxx X. Xxxxxxxxx
