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Exhibit 10.6
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CONTRACT OF EMPLOYMENT
BETWEEN
HERMES EUROPE RAILTEL X.X., Xxxxxxxxxx 000, 0000 Xxxxxxxx, represented by Xxx
XXXXXX, Managing Director,
hereafter referred to as "the employer',
AND Xx X.X. XXXXXXXX, Mouflonlaan 18, 3090 Overijse,
hereafter referred to as "the employee",
IS AGREED AND ACCEPTED WHICH FOLLOWS:
Article 1
Xx X.X. Xxxxxxxx is appointed by the employer in the position of Director of
Operations.
Article 2
This contract is concluded for an undetermined period, starting November 1st,
1995.
Article 3
The employee shall principally perform his duties at the employer's offices
in Brussels or in the NW MGM Center (location still to be determined). When
necessary, he can be assigned to other offices.
Article 4
The compensation and benefit - package of the employee is composed as follows:
a) salary
The employee shall be paid an annual net base salary of BF 2.800.000 This
net guaranteed salary is after tax and social security contributions and
includes all obligatory allowances to be paid to the employee in
accordance to Belgian laws and regulations.
b) bonus award
Bonus: You will be assessed for award of a net discretionary bonus of up
to 10 % of your net base salary. All bonuses will be paid within 30 days
after receipt of final audited financial statements for Hermes in the
applicable fiscal year. The first year the bonus will be pro-rata the
months worked.
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Deferred bonus: You will also have the opportunity to earn an additional
deferred bonus of up to 10% of your base salary, beginning the calendar
year 1996. This deferred bonus is accrued during 3 years at the rate of
your annual actual bonus and payable after the 3rd year as described under
pt. 2. You must be employed by HER as of 31st December 1998 to receive
such deferred bonus. A new deferred bonus plan will be negotiated after
the 2nd year deferred bonus is communicated.
d) insurance
You will continue to be covered by the Belgian social security. You will
be included in the company's hospitalization and pension plan which will
be established. The pension plan at your level will allow a
target-coverage of 80%.
e) expenses
Representation expenses: You will receive a lump sum representation
allowance of BF 13,000.-per month, if accepted by the Belgian tax
administration.
f) Automobile
You will be provided with the use of a leased automobile including
reimbursement of all operating costs in accordance with the standard
Belgian practice for Executive employees.
Article 5
The weekly working time contains 38 hours and is divided over the first
five days of the week.
Article 6
The employee is obliged to notify the company immediately of any
circumstances which may cause his absence from work. If the absence is the
result of work incapacity, the employee shall submit a medical certificate
to the company, at the latest 48 hours from the day of incapacity,
indicating the estimated duration of the work incapacity.
Article 7
During or after the termination of the employment contract, the employee
shall restrain himself from communicating to third parties any
confidential information or documents of the company and from unfair
competition.
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Article 8
The employee will devote all his working activity to the employer and he
will not carry out any "professional activities" for himself or third
parties without the prior approval of the employer.
Article 9
In the event, the agreement is being terminated on the initiative of the
employer, the notice period to be respected by the latter will be equal to
6 months.
Article 10
The employee shall receive one mealcheck per effective working day. The
face value per check will be BF 225, of which 45 BF is for his personal
account and will be deducted per month.
The employee will cooperate in full on any file needed by the company for
tax or social security purposes.
Article 11
This agreement is made and entered into and is to be governed by and
construed in accordance with the laws of Belgium and more specifically the
law of July 3rd, 1978 on Employment Contracts.
Made in two originals in Brussels on 26/09/95
Each party acknowledges to having received one copy.
/s/Xxxx X Xxxxxxxx /s/ Xxx Xxxxxx
Xx Xxxx X XXXXXXXX Xx. Xxx XXXXXX
The employee Managing Director
