Exhibit 10.2
EMPLOYMENT AGREEMENT
This Employment Agreement is entered into by and between Applied Films
Corporation ("Company") of 0000 X-00 Xxxxxxxx Xxxx Xxxxxxxx, XX 00000, XXX and
Xx. Xxxxx Xxxx Xxx ("Employee") who is a Taiwanese Citizen currently residing at
#00, X-Xxxx Xxx Xxxxxxx, Xxxxxx Xxxx, Xxxxxxx Xxxxx, Xxxxxx.
1. POSITION, RESPONSIBILITIES AND DUTIES
- Your position will be Sr. Vice President - Display Division, an
Executive Team Position. You will also serve as the President of
Applied Films Taiwan Corporation.
- As an Executive Team member you will be subject to the restrictions
of an officer under section 16 of the Securities and Exchange
Commission.
- Your major responsibilities and duties are described, but not limited
to those in the attached job description
- You may be required to travel on the business of the Company to such
places within and outside of Taiwan and in such manner and on such
occasion as the Company may from time to time require
2. COMMENCEMENT AND EMPLOYMENT PERIOD
- Your employment will commence on January 1, 2006
- The period of this agreement is 3 years from the commencement date of
employment.
3. REMUNERATION
- Base annual salary will be Six Million Nine Hundred Thousand
(6,900,000) New Taiwan Dollars (NTD) per year, payable by the Company
in twelve (12) equal monthly installments of Five Hundred Seventy Five
Thousand NTD (575,000) on the 25th of each month/regular payroll date.
50% of your salary will be paid in US Dollars to an account in Hong
Kong or in the US as you designate, and this conversion to US Dollars
will occur monthly at the time payroll is processed.
- The net amount, after deduction of the appropriate taxes based on the
Taiwan Tax Law, will be remitted directly to your bank account.
- Bonus will be 40% of annual base salary and will be structured in
accordance with the Applied Films Management Bonus Plan. The bonus is
based on your performance and the results you achieve in your assigned
position (20%), and the overall results achieved by the Company
against its goals (80%), pro-rated based on date of hire.
- The company will provide a leased or rented car and all expenses
including gas, toll fees, insurance, maintenance and repairs, etc.
will be covered by the Company.
- On your official start date, you will be granted twenty thousand
(20,000) options of Applied Films Corporation Stock as an initial
grant. Effective fiscal year 2007, you will receive stock options
commensurate with an executive team position annually (currently 5,000
options per quarter or a board designated number of options) subject
to approval of the Compensation Committee of the Applied Films Board
of Directors. The price of the options will be the closing price of
Applied Films common stock according to the NASDAQ market on the date
of the grant of the options. The options vest over a four-year period
from the date of the grant. The first exercise may be made one year
from the date of the grant, and an additional 25% of the total options
may be exercised each year after the anniversary date of the option
grant date. Subject to the restrictions of an officer under section 16
of the Securities and Exchange Commission.
4. WORK REGULATIONS
- All employees of Applied Films Taiwan are governed by the regulations
contained in the Taiwan Employee Handbook. The Employee Handbook
covers most facets of your employment including work schedules, public
holidays, vacations and so forth. A copy will be provided to you.
- You will be required to sign a Confidentiality and Non-Compete
Agreement as a condition of employment. A copy is enclosed.
5. BUSINESS-RELATED EXPENSES
- The company reimburses employees for actual expenses incurred while
traveling, with the exception of meals. A per diem allowance for meals
is based on the destination you are traveling to. You will be provided
a company credit card to use for business expenses to minimize any
need to pay expenses out of pocket.
- Any out of pocket expenses such as transportation costs, hotel,
entertainment and other expenses the Company considers reasonable and
proper in the performance of your duties will be reimbursed to you.
You should provide the Company with such vouchers or other evidence of
actual payments of such expenses as the Company may require.
6. TERMINATION OF EMPLOYMENT
- Your employment with the Company can be terminated by either party by
written notice to the other party of six (6) months.
- If you are terminated for cause (for example, dishonesty, criminal
behavior, etc.) or if you voluntarily resign or are terminated for
performance reasons, the Company will make no termination period. If
you are terminated for performance reasons after one year of
employment, the company will pay a severance equal to six (6) months
of your base pay at the time of separation.
- The Company shall pay a retirement pension equal to 200% of monthly
salary times the number of years worked for the company.
7. OTHER COMPANY BENEFIT PROGRAMS
- You will be eligible to participate in the Company's designated
benefit programs in Taiwan. Details are available in our Employee
Handbook
8. GOVERNING LAW
- This agreement shall be governed by and construed in accordance with
the laws of the Taiwan, Republic of China.
9. ENTIRE AGREEMENT; AMENDMENTS
- There are no other terms and conditions of employment other than those
stated in this agreement and the documents referenced in this
agreement. This agreement may be amended only by agreement of both
parties.
Please signify your acceptance of this agreement by signing and returning it to
the Company. You will be provided a duplicated copy of this Employment
Agreement.
/s/ Xxxxxx X. Xxxxx 11/30/05
-------------------------------------- Date
Xxxxxx X. Xxxxx
President and CEO
Applied Films Corporation
I accept this position as outlined above:
/s/ Dr. Chuag Xxxx Xxx Jan 1/06
-------------------------------------- Date
Xx. Xxxxx Xxxx Xxx
