Exhibit 10.7
XXXXX XXXXXXX EMPLOYMENT CONTRACT
EMPLOYMENT CONTRACT
This Agreement made as of the 1st day of June, 2002, between Dental
Resources, Inc., a Minnesota corporation ("the Company") and Xxxxx X. Xxxxxxx of
Buffalo, Minnesota ("Nichols")
RECITALS
X. Xxxxxxx, is presently employed by the Company as Vice President and
Chief Financial Officer.
B. The parties are desirous of entering into a contract providing for
Xxxxxxx' employment by the Company upon the terms and conditions set forth below
for the period beginning June 1, 2002.
X. Xxxxxxx services have been of great value to the Company and has
recognized that substantial inducements must be offered to Xxxxxxx so that the
Company may retain his services.
AGREEMENT
The following constitutes the agreement of the parties.
1. Employment. The Company shall employ Xxxxxxx as follows:
a. Executive Employment. As its vice president, Xxxxxxx
hereby accepts such employment for the period
beginning June 1, 2002 and ending May 31, 2007,
provided that either the Company or Xxxxxxx may by
written notice to the other at any time subsequent to
May 31, 2007, terminate Xxxxxxx employment as the
Company's vice president effective as of the first
day of the third month following such notice. The
period during which Xxxxxxx serves as vice president
shall be referred to as the period of "Executive
Employment".
b. Other Employment. In the event Xxxxxxx employment as
vice president of the Company is terminated as set
forth in Paragraph 1(a) above, the Company shall
offer Other Employment to Xxxxxxx in such capacity as
the Board of Directors may designate, or as a
consultant. The salary shall be equal to fifty
percent (50%) of the average of Xxxxxxx' salary for
the last five years. The period, if any, during which
Xxxxxxx so serves the Company shall be referred to as
the period of "Other Employment"
2. Duties. Xxxxxxx agrees that he will serve the Company under
the direction of the Board of Directors, faithfully,
diligently, competently, and to the best of his ability until
his employment is terminated as herein provided.
a. Executive Employment. During the period of Executive
Employment, he shall devote full time to his
employment and shall act as vice president or other
executive officer of the Company and shall perform
all duties incident to such office or offices and all
additional duties that the Board of Directors may
periodically assign to him. He shall also, during the
period of Executive Employment, serve in similar
capacities, and without additional compensation any
subsidiary of the Company that the Board of Directors
may select.
b. Other Employment. During any period of Other
Employment, Xxxxxxx agrees to serve in the capacity
designated by the Board of Directors and to perform
all general duties that the Board of Directors may,
from time to time, reasonably require of him. Such
general duties, however, shall not be inconsistent
with position and title which he shall then hold,
shall not be those that are ordinarily and generally
performed by the Chief Executive, and shall not be
such as to constitute him the president. In
performing such duties, Xxxxxxx shall report directly
to the Company's Board of Directors.
3. Compensation. The Company shall pay Xxxxxxx the following:
a. Executive Employment. The Company shall pay to
Xxxxxxx a salary in an amount equal to his salary at
May 31, 2002 per year in equal weekly installments,
plus a bonus payable quarterly, equal to five percent
of the pre-tax net operating profits of the Company
plus future stock purchase agreements. This base
salary shall be adjusted annually to reflect changes
in the cost of living as established by the Federal
Reserve Bank for the Minneapolis, Minnesota district.
b. Other Employment. During the period of Other
Employment, if any, the Company shall pay to Xxxxxxx
a yearly salary equal to fifty percent (50%) of the
average of his annual total earnings for the last
five years.
4. Termination of Executive Employment by Company.
Notwithstanding the above, the Company shall have the
following rights to terminate Xxxxxxx' Executive Employment:
a. Disability. If Xxxxxxx shall become unable to perform
the duties required of him because of serious
physical disability or other incapacity, the Company
may, upon at least 90 days' written notice, terminate
his Executive Employment. Such notice shall specify
whether or not Xxxxxxx is to serve the Company for a
period of Other Employment. If other employment is
offered and thereafter terminated prior to May 31,
2007, Xxxxxxx will be entitled to one year's
severance pay at the termination of other employment
whenever it occurs as provided in paragraph 5 (a)
below.
5. Termination of Other Employment by Company. Notwithstanding
anything hereinbefore provided, the Company shall have the
following rights to terminate Xxxxxxx' Other Employment at
any time on or after May 31, 2007:
a. Disability, If Xxxxxxx shall become unable to
perform his duties in accordance with this Agreement
due to serious physical disability or other
incapacity, the Company may, by giving at least 90
days' written notice, terminate his Other Employment.
If Other Employment is terminated under this
provision, Xxxxxxx shall be entitled to receive as
severance pay an amount equal to his then current
salary and bonuses for the previous 12 months.
6. Effect of Termination of Executive Employment.
a. Disability. If Xxxxxxx' Executive Employment is
terminated pursuant to this Agreement by reason of
disability, the Company shall pay to Xxxxxxx for the
following twelve months from the date of the notice,
an amount equal to the average of this five year
annual compensation, including salaries and bonuses.
b. Voluntary Termination. In the event Xxxxxxx
voluntarily terminates his Executive Employment with
the Company on or before May 31, 2007 by giving 90
days written notice of this intention to so
terminate, all rights under this Agreement which have
not vested, will terminate at the end of the notice
period.
c. Without Cause. If Xxxxxxx Executive Employment is
terminated, without cause, prior to May 31, 2007, his
executive salary as herein provide shall be paid
through May 31, 2007. If Xxxxxxx Executive Employment
is terminated without cause, the right of Xxxxxxx and
his estate to collect Executive Salary through May
31, 2007, shall not be terminated by his death or
disability.
7. Effect of Termination of Other Employment.
If Xxxxxxx performs Other Employment as defined hereunder and
is compensated therefor, his right to compensation shall cease
at the termination of Other Employment as hereinbefore
provided, except as to severance pay due him under paragraph 5
(a).
8. Death. Except as herein otherwise provided, if Xxxxxxx ' Other
Employment terminates by his death after May 31, 2007, his
Executive Salary shall be paid to his legal representative to
the end of the month in which he dies and shall then
terminate.
9. Consolidation or Merger. In the event of any consolidation or
merger of the Company into or with another corporation, after
the date of this Agreement, or the sale of all or
substantially all of the Company's assets to another
corporation, after the date of this Agreement, such
corporation shall assume this contract and be obligated to
perform all of its terms and conditions, and Xxxxxxx'
obligations hereunder shall continue in favor of such
corporation. If such successor corporation terminates Xxxxxxx'
employment without cause, it shall be obligated to pay his
Executive Salary through May 31, 2007, and in addition, as
severance pay, shall pay Xxxxxxx' and amount equal to the
average of his five years' employment, including salary and
bonuses. However, the failure of either party to insist in any
one or more instances upon performance of any term or
condition of this contract shall not be construed as a waiver
or a relinquishment of any right granted hereunder or of the
future performance of any such term, covenant, or condition.
The obligations of either party with respect thereto shall
continue in full force and effect.
10. Notices Any notice to be given to the Company hereunder shall
be deemed sufficient if addressed to it in writing and
delivered or mailed by registered mail to its office at X.X.
Xxx 00, Xxxxxx, Xxxxxxxxx 00000, or any other address that the
Company may hereafter designate.
Any notice to be given to Xxxxxxx hereunder shall be deemed
sufficient if addressed to him in writing and delivered or mailed by registered
mail to him at 0000 00xx Xxxxxx X.X. Xxxxxxx, Xx 00000
11. Successors and Assigns. This contract shall be binding upon
the Company's successor or successors and, unless clearly
inapplicable, any reference to the Company shall be deemed to
include its successor or successors. Except as herein
otherwise expressly provided, this contract shall be binding
upon and inure to the benefits of Xxxxxxx , his legal
representatives, and assigns.
12. Entire Agreement. This Agreement supersedes all other
agreements previously made between the parties relating to its
subject matter. There are no other understandings or
agreements.
13. Headings. Headings in this Agreement are for convenience only
and shall not be used to interpret or construe its provisions.
14. Governing Law. This Agreement shall be construed in accordance
with and governed by the laws of the State of Minnesota.
15. Counterparts. 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 contract under
seal, in duplicate, on the day and year first written above.
DENTAL RESOURCES, INC.
By:
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Its: President
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Xxxxx X. Xxxxxxx
