EXHIBIT 10(f)
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EMPLOYMENT AGREEMENT
By and Between
CIMTRONICS, INC.,
As the Employer
And
E. XXXXXXX XXXXXXXX,
As the Employee
Dated: September 30, 1999
EMPLOYMENT AGREEMENT
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THIS EMPLOYMENT AGREEMENT ("Agreement"), by and between CIMTRONICS, INC.
("Employer"), an Arizona corporation having a principal place of business at
0000 Xxxx Xxxxxxx Xxxxx, Xxxxx X000, Xxxxxxxxxx, Xxxxxxx, 00000, and E. XXXXXXX
XXXXXXXX ("Employee"), an individual residing at 0000 Xxxx Xxxxxxxxx Xxxx, #000,
Xxxxxxxxxx, Xxxxxxx, 00000, made the day and year last written below.
WHEREAS, the parties hereto desire to provide for the employment of
Employee by Employer upon the terms and conditions herein set forth; and
WHEREAS, OnCourse Technologies, Inc. ("Parent"), a Nevada corporation with
a principal office at 0000 Xxxxx 000xx Xxxxxx, Xxx Xxxxxx, Xxxxxxxxx, 00000, is
the sole shareholder of Employer.
NOW, THEREFORE, in consideration of the promises and the mutual covenants
and agreements contained herein, the parties hereto mutually agree as follows:
ARTICLE ONE
Term of Employment
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The Employer hereby employs the Employee and the Employee hereby accepts
employment with the Employer as a salaried employee for a period of five (5)
years, commencing on October 1, 1999 and terminating on September 30, 2004,
unless further extended or sooner terminated in accordance with the terms and
conditions of this Agreement. References to the term of this Agreement shall
refer both to the initial term and any successive terms.
ARTICLE TWO
Duties of Employee
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Section 2.01. Duties. Employer hereby employs Employee as an executive,
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consultant, advisor and sales person of Employer, and Employee accepts such
employment and agrees to perform the duties appropriate to such office and such
other duties, consistent with the duties Employee performed for Employer prior
to the effective date of this Agreement, as the Board of Directors of Employer
shall also from time to time direct. During any period in which Employee holds
any one or more offices of Employer, including but not limited to President,
Secretary and/or Treasurer, his duties under this Agreement shall include the
duties appropriate to such office. By way of example and not limitation,
Employee shall, to the extent applicable to him in his activities as Employee or
in any other capacity in which he may serve the Employer, be responsible to:
(a) Assist the Employer in the recruitment of professional and staff
personnel and the development of job standards.
(b) Assist the Employer in supervision of the other executive and
staff personnel of the Employer and evaluation of executive and staff
performance.
(c) Assist the Employer in controlling costs and participate, if
requested by the Employer, in the preparation of operating and capital
budgets (including projections for revenues and expenditures).
(d) Assist the Employer in developing and marketing the Employer's
products and services.
(e) Maintain and provide to Employer billing records and other
information in a form that permits the information to be validated by
Employer.
(f) Perform such other functions or duties as from time to time
reasonably directed by the Employer, consistent with the duties Employee
performed for the Employer prior to the effective date of this Agreement,
or as otherwise required by this Agreement.
Section 2.02. Place of Employment. The services of Employee shall be
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rendered principally at 0000 Xxxx Xxxxxxx Xxxxx, Xxxxx X000, Xxxxxxxxxx,
Xxxxxxx, 00000, and at and such other place or places, and such travel as the
Board of Directors of Employer shall reasonably determine.
Section 2.03. Hours of Employment. During the effective term of this
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Agreement, the Employee shall devote during the normal business hours designated
by the Employer a minimum of forty (40) hours per week to the business of the
Employer, except for holidays, authorized sick leave, and vacation time as
provided below.
Section 2.04. Engaging in Other Employment. The Employee shall devote his
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entire productive time, ability, and attention to the business of the Employer
during the term of this Agreement on a full-time basis. The Employee shall not
directly or indirectly render any services of a business, commercial, or
professional nature to any other person or organization, whether for
compensation, or otherwise, without the prior written consent of the Employer.
ARTICLE THREE
Compensation
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Section 3.01. Base Compensation. As base compensation for services rendered
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under this Agreement, the Employee shall initially be entitled to receive from
the Employer a minimum base salary of One Hundred Thousand and 00/100's Dollars
($100,000.00) per year, payable in twenty-four (24) equal bi-monthly
installments of Four Thousand One Hundred Sixty-six and 67/100's Dollars
($4,166.67) each commencing on October 15, 1999 and continuing on the first
(1st) and fifteenth (15th) day of each month during the period of employment,
prorated for any partial employment period.
Section 3.02. Salary Increases. For any successive one (1) year term of
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this Agreement after the first, the Employee may receive a salary increase in an
amount, if any, determined in the sole discretion of the Board of Directors of
the Employer.
Section 3.03. Overtime Compensation. Employee shall be a salaried employee
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of the Employer and shall not be entitled to overtime compensation.
Section 3.04. Additional Compensation. Prior to the effective date of this
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Agreement, Employee, along with employee XXXXXX X. XXXXXXXX, substantially
completed but did not close the sale of two (2) of the Employer's CNC machines
to Hill Airforce Base in Salt Lake City, Utah. It is the intent of the parties
that Employee, along with employee XXXXXX X. XXXXXXXX, equally receive the
benefits of such sale or any similar sale if it is closed. In the event that the
Employer sells either or both of such CNC machines, or any similar or related
machine tools, to such air force base within two (2) years following the
effective date of this Agreement, the Net Profits therefrom shall be distributed
equally to Employee and employee XXXXXX X. XXXXXXXX, within ninety (90) days of
Employer's receipt of the proceeds of such sale, as additional compensation. For
the purposes of the foregoing sentence, Net Profits from the sale shall be
reduced by any costs and expenses reasonably associated with either the sold
machine(s) and/or the sale, including but not limited to taxes on the transfer
thereof, taxes levied against the proceeds or profits thereon, salesperson
travel and entertainment expenses, transportation expenses, broker commissions,
related maintenance or repairs, installation and de-installation costs, and
similar costs and expenses. The determination of the Net Profits from such sale
shall be made by independent certified public accountants regularly employed by
Employer for the purpose of preparing the financial reports of Employer. The
Employee shall be entitled to receive within ninety (90) days of Employer's
receipt of the proceeds of such sale an appropriate written report prepared by
the independent certified public accountants of Employer, which report shall
show the Net Profits of the sale, computed in accordance with this Section, in
sufficient detail for Employee to verify compliance with this Section. The
computations made by such independent certified public accountants shall be
final and conclusive unless Employee shall, by written notice to Employer,
within thirty (30) days after receipt of any such statement, have made objection
thereto.
In the event Employee and Employer are unable to resolve any disputes as to the
proper amount of Net Profits for the sale, within thirty (30) days after receipt
by Employer of the written objection by the Employee, the Employee and/or
Employer may submit such dispute to arbitration in Scottsdale, Arizona (or such
other place as Employer and Employee may mutually agree) under the rules then
obtaining of the American Arbitration Association, and judgment upon any award
in such arbitration may be entered in any court having jurisdiction thereof.
ARTICLE FOUR
Fringe Benefits
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Section 4.01. Vacation Pay. The Employee shall be entitled to three (3)
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weeks vacation annually, with full pay, to be taken at such time or times as
shall be mutually convenient to the Employer and the Employee.
Section 4.02. Holidays. The Employee shall be entitled to a holiday with
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full pay on each day other than a Saturday or Sunday on which national banking
associations in the State of Arizona are closed.
Section 4.03. Paid Sick Leave. The Employee shall be entitled to five (5)
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sick days each year, with full pay.
Section 4.04. Medical and Insurance Benefits. During the term of this
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Agreement, the Employee shall be entitled to health and hospitalization
insurance and other benefits in at least the same amounts and with the same
benefits as Employee received from Employer immediately prior to the effective
date of this Agreement or such additional amounts and/or benefits as Employer
may furnish to the other employees and executives of the Employer from time to
time during the term of this Agreement. Employee shall be entitled to
participate in and receive the benefits of any plan of the Employer relating to
hospital, surgical, medical and dental coverage or reimbursements; group life
insurance, accidental death and dismemberment, and disability insurance; or any
other plans, benefits and privileges, together with such other and additional
fringe benefits and such improvements to existing benefits as the Employer may
make available to the employees and executives of the Employer, now existing or
which may hereafter come into existence during the term of this Agreement.
Section 4.05. Retirement Benefits. During the term of this Agreement, the
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Employee shall be entitled to participate in and receive the benefits of any
stock option, profit-sharing, or other plans, benefits, and privileges given the
employees and executives of the Employer, to the extent commensurate with his
then duties and responsibilities. Nothing paid to Employee under any plan or
arrangement presently in effect or made available in the future shall be deemed
to be in lieu of the salary payable to Employee pursuant to Article Three above.
ARTICLE FIVE
Expenses
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Subject to such limitations as may be established by the Board of Directors
of Employer in its sole and absolute discretion, Employer shall pay all
reasonable travel and other expenses incident to the rendering of services by
Employee hereunder, consistent with Employer's prior practice, or, if any such
expenses are paid in the first instance by Employee, Employer will reimburse him
therefore on presentation of expense accounts and appropriate documentation in
accordance with the customary executive procedures of Employer, provided such
expenses are deductible by the Employer for purposes of federal income taxation.
If such expenses are paid in the first instance by Employee, the Employer shall
promptly reimburse Employee after he has furnished the Employer such receipts
and other documentation or evidence of the incurred expense as is consistent
with the customary executive procedures of the Employer or, if no such
procedures are established, as shall be required in order to satisfy the rules
and regulations of the Internal Revenue Service with respect to the
substantiation of such item of expense for federal income tax deduction
purposes.
ARTICLE SIX
Termination
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Section 6.01. Automatic Termination. This Agreement shall automatically
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terminate upon the death of the Employee or upon the dissolution of the
Employer.
Section 6.02. Termination By Employee and/or Employer. Notwithstanding any
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provision of this Agreement to the contrary, this Agreement may be terminated at
any time upon the mutual written agreement of the parties, by either party upon
thirty (30) days' prior written notice to the other, or by the Employer upon
written notice to Employee, which notice shall state that the termination is for
"cause." Termination by any party shall be without prejudice to any other remedy
to which such party may be entitled either at law, in equity, or under this
Agreement. "Cause" shall mean any one or more of the following:
(a) Gross misconduct by Employee or material failure by Employee to
perform his obligations in accordance with this Agreement, as determined by
the Employer.
(b) Conviction of, or pleading of nolo contendere to, any felony.
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(c) Total disability of Employee for a period of thirty (30) days in
any one hundred eighty (180) day period. If Employee is covered by a
disability insurance policy pursuant to which he would receive benefits,
the term "total disability" shall have the meaning set forth in such
policy. If he is not covered by a disability insurance policy, "total
disability" shall be defined as the inability to perform the normal and
ordinary duties of Employee as such duties are defined in this Agreement.
(d) Permanent or prolonged absence by Employee from the Employer which
would, in the opinion of the Employer, prevent Employee from discharging
his obligations hereunder. Prolonged absence shall be defined as absence of
fifteen (15) business days or more in any one hundred twenty (120) day
period without reasonable explanation satisfactory to the Board of
Directors of the Employer.
(e) Chronic illness, disability, failing health, alcoholism or
substance abuse of Employee which materially affects the ability of
Employee to perform his duties under this Agreement.
(f) If irreconcilable differences exist between Employee and Employer.
(g) Material breach by Employee of any provision of this Agreement.
Section 6.03. Effect of Termination. In the event of the termination of
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this Agreement prior to the completion of the term of employment specified
herein, the Employee shall be entitled to the compensation earned by him prior
to the date of termination as provided for in this Agreement computed pro-rata
up to and including such date. Except as provided in Section 3.04 above, the
Employee shall be entitled to no further compensation as of the date of
termination. If the Employee dies prior to the expiration of the term of
employment, any moneys that may be due him from the Employer under this
Agreement as of the date of his death shall be paid to his executors,
administrators, heirs, personal representatives, successors, and assigns.
Termination of this Agreement shall not prejudice any remedy which either party
may have at law, in equity, or under this Agreement.
ARTICLE SEVEN
Intellectual Property and Competitive Activities
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Section 7.01. Ownership of Intellectual Property. All inventions,
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discoveries, improvements, designs, apparatus, practices, processes, methods,
products, development of ideas, development of concepts, development of codes,
workings of computer programs and/or software, whether patentable or not, and
all materials made, developed, perfected, devised, conceived or first reduced to
practice by Employee, whether copyrightable or not, either solely by
the Employee or jointly or in conjunction with others, prior to or during the
term of this Agreement and in the course of or in any way connected with the
business of the Employer (hereinafter individually or collectively called
"Intellectual Property"), shall be the sole and exclusive property of the
Employer or its nominee. Employee hereby assigns to Employer any and all
interest he now has or may have, either individually, jointly or in conjunction
with others, or otherwise, in and to any such Intellectual Property. The
Employee shall promptly disclose to the Employer in writing complete information
relative to any and all such Intellectual Property.
Section 7.02. Power of Attorney. During the term of this Agreement and
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thereafter within five (5) days after receipt of Employer's request therefore,
Employee shall execute, acknowledge and swear to any and all Letters Patent of
the United States and/or of foreign countries, copyrights, trademarks,
fictitious and assumed name certificates, or the equivalent for any and all
Intellectual Property and all applications, amendments, modifications,
assignments, conveyances, statements, forms, schedules, filings and other
instruments relating thereto, which Employer shall deem necessary or convenient.
Employee hereby makes, constitutes and appoints Employer, or such one or more
persons as the Employer shall designate in writing, his attorney-in-fact, with
full power of substitution, for the purpose of executing, acknowledging,
swearing to and filing any and all such instruments. The foregoing power of
attorney is coupled with an interest and shall be irrevocable and survive the
death or disability of the Employee and the merger, consolidation,
reorganization or liquidation of the Employer. Employee shall execute and
deliver to Employer within five (5) days after receipt of Employer's request
therefore, such further designations, powers of attorney and other instruments
as Employer deems necessary to carry out the provisions of this Section.
Section 7.03. Waiver by Employer. If Employee, during the course of his
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employment by Employer, shall make an invention covered by the terms of this
Agreement, and shall make a full and complete disclosure thereof to Employer;
and if Employer, after such disclosure, shall state in writing over the
signature of the Directors of the Employer and the Parent, that Employer is not
interested in such invention; then Employee shall be free to make such use of
any such invention as Employee may desire, free of all claims whatsoever on the
part of Employer.
Section 7.04. Confidentiality. Employee shall not directly or indirectly
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disclose or use at any time, either during or subsequent to the term of this
Agreement, any secret or confidential information, knowledge, or data of
Employer (whether or not obtained, acquired, or developed by Employee),
including but not limited to (a) the Intellectual Property, (b) the business of
the Employer, its agents, suppliers or other companies with which the Employer
may be cooperating and (c) the plans, manufacturing methods, processes,
techniques, products or research activities, ideas, concepts, codes or workings
of computer programs and/or software which the Employee may have gained during
his period of employment, which are not generally known to the public or
recognized as standard practices, unless he shall first secure the written
consent of Employer.
Section 7.05. Employee's Waiver of Rights and Claims. Employee shall not,
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at any time during or after the termination of this Agreement for any reason
whatsoever, have or claim any right, title, or interest in or to any of the
Intellectual Property or any trademark or trade name or any other names or marks
belonging to or used by Employer, and never shall have or claim any right,
title, or interest in or to any material or matter of any sort prepared for or
used in connection with the advertising, broadcasting, or promotion of the
products or services of Employer, whether produced, prepared, published, or
broadcast in whole or in part by Employee; it being the intention of this
Agreement that Employee shall, and hereby does, recognize that Employer now has
and shall hereafter have and retain the sole and exclusive rights in any and all
such Intellectual Property, trademarks, trade names, and other matters
hereinbefore referred to.
Section 7.06. Surrender of Documents. Upon termination of this Agreement
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for any reason whatsoever, Employee shall turn over to Employer all notes,
memoranda, notebooks, records, letters, forms, lists, calculations, blueprints,
specifications, designs, drawings, software, computer programs, computer files,
or other documents relating to the Intellectual Property and any other notes,
memoranda, notebooks, drawings, software, computer programs, or other documents
of Employer in the possession or control of Employee, including but not limited
to any and all documents relating to Employer's customers, distributors,
distribution systems, inventions, or patentable or copyrightable materials; it
being agreed that the same and all information contained therein are at all
times the property of the Employer.
Section 7.07. Noncompetition Agreement. Employee agrees that during the
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term of this Agreement and for a period of two (2) years following termination
of this Agreement for any reason other than as provided in Paragraph (d) below,
except with the express consent of the Employer and the Parent, he will not,
directly or indirectly, engage or participate in, become a director of, or
render advisory or other services for, or in connection with, or become
interested in, or make any financial investment in any firm, corporation,
business entity or business enterprise competitive with or to any business of
the Employer; provided, however, that the Employee shall not thereby be
precluded or prohibited from owning passive investments in the securities of
publicly traded corporations. By way of example and not limitation:
(a) During the term of this Agreement and for a period of two (2)
years following termination of this Agreement for any reason, Employee
covenants and agrees that he will not, without Employer's and Parent's
prior written consent, directly or indirectly or as a director, officer,
employee, partner, consultant, or otherwise in any way aid or assist or
have any interest in, or render advisory or other services for, or in
connection with, or make any financial investment in any Entity (as
hereinafter defined).
(b) Employee further covenants and agrees that during such two (2)-
year period, he will not, directly or indirectly, employ, or knowingly
permit any corporation, partnership, joint venture, sole proprietorship,
association, syndicate, trust or other entity directly or indirectly
controlled by him to employ, any person employed by Employer at any time
during the term of this Agreement or the two (2)-year period following its
termination, or in any manner seek to induce any such person to leave his
or her employment with Employer.
(c) For the purposes of this Section, an "Entity" means any
corporation, partnership, joint venture, sole proprietorship, association,
syndicate, trust, business trust or other form of entity of whatsoever
nature, whether for profit or not-for-profit, which owns or operates a
business which develops, manufactures and/or sells computer programs and/or
software for use in machine shop estimating or any other computer programs
and/or software owned or developed by Employer prior to or during the term
of this Agreement.
(d) This Section 7.06 shall not apply in the event that Employer
terminates this Agreement unless such Employer termination is for one or
more of the causes listed in Paragraphs (a) through (e) and/or (g) of
Section 6.02 above.
Section 7.08. Covenants Enforceable in Equity. Employer and Employee have
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examined in detail the restrictive covenants and agreements contained in this
Article and agree that the restraints imposed upon Employee herein are not
unduly harsh or oppressive, are a material inducement to Employer to execute
this Agreement, and are reasonable in order to protect Employer and its
legitimate business interests. Any breach or evasion of any term or provision of
this Article shall be deemed to have caused immediate and irreparable injury to
Employer and will authorize recourse by Employer to injunctive relief and/or
specific performance, as well as to any and all other legal or equitable
remedies to which Employer may be entitled.
ARTICLE EIGHT
General Provisions
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Section 8.01. Notices. Any notices to be given hereunder by either party to
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the other or to the Parent may be effected either by personal delivery in
writing or by mail, registered or certified, postage prepaid with return receipt
requested, to the Employee (or to the Employee's spouse or estate upon the
Employee's death) at the Employee's last known address, and to the Employer or
Parent at their principal offices. Notice delivered personally shall be deemed
communicated as of actual receipt. Mailed notices shall be deemed communicated
as of five (5) days after mailing. All notices to Employer required or permitted
herein, to be effective, shall be concurrently copied to the Parent.
Section 8.02. Amendments. This Agreement may not be modified, changed,
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amended, or altered except in writing signed by the Employee or his duly
authorized representative, and by a duly authorized officer of the Employer, and
consented to in writing by the Parent.
Section 8.03. Inclusion of Entire Agreement Herein. This Agreement
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supersedes any and all other prior agreements, either oral or in writing, and
sets forth the entire agreement between the parties hereto, with respect to the
within subject matter. The signing of this Agreement by the parties constitutes
their mutual recognition that no other contract or agreements, oral or written,
except as are in writing, signed by the parties and attached hereto or
specifically incorporated herein, exists between them. Each party hereby
represents that he or it will not rely upon any agreement or understanding not
reduced to writing and incorporated in this Agreement.
Section 8.04. Independence Of Rights and Privileges. Except as expressly
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provided to the contrary herein or therein, the payment or obligation to pay any
monies, or the granting of any rights or privileges to Employee as provided in
this Agreement shall be independent of, in addition to and shall not in any way
affect, reduce, or be in lieu or derogation of any other monies payable and
rights and privileges accruing under any other agreements which now exist or may
hereafter exist from time to time between the Employer and the Employee.
Section 8.05. Law Governing Agreement. This Agreement shall be governed in
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all respects and be interpreted by and under the laws of the State of Arizona,
except to the extent that such law or laws may be preempted by applicable
federal law, including regulations, opinions, and duly issued orders, in which
event this Agreement shall be governed and interpreted by and under the federal
law or laws.
Section 8.06. Waivers. The failure of either party to insist upon the
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strict performance of any of the terms, conditions, and provisions of this
Agreement shall not be construed as a waiver or relinquishment of future
compliance therewith, and said terms, conditions, and provisions shall remain in
full force and effect. No waiver of any term or condition of this Agreement or
consent required or permitted on the part of either party shall be effective for
any purpose whatsoever unless such waiver is in writing and signed by such
waiving party and, in the case of the Employer, signed in writing by the Parent.
No course of conduct between the Employer and the Employee and no delay or
omission of the Parent, the Employer or the Employee to exercise any right or
power granted under this Agreement shall impair the subsequent exercise of any
such right or power, or be construed to be a waiver of any default or any
acquiescence in or consent to the curing of any default or of any other right or
power that shall have arisen; and every power and remedy granted by law and by
this Agreement to any party may be exercised from time to time, and as often as
may be deemed expedient.
Section 8.07. Successors. This Agreement shall inure to the benefit of and
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be binding upon the Employee, and, to the extent applicable, his heirs, assigns,
executors, and personal representatives, and the Employer, its successors and
assigns, including without limitation any person, partnership, or corporation
which may acquire all or substantially all of the Employer's assets and
business, or with and into which the Employer may be consolidated or merged.
This Agreement is personal to each of the parties and neither party may assign
or delegate any of his or its rights or obligations hereunder without the prior
written consent of the other party, and neither the Employee nor his
beneficiaries shall have the right to encumber, commute, borrow against, dispose
of, or assign the right to receive payments hereunder. Except in so far as this
provision may be contrary to applicable law, no involuntary sale, transfer,
alienation, assignment, pledge, collateralization, or attachment of any monies
or benefits payable to Employee hereunder shall be valid or recognized by the
Employer.
Section 8.08. Arbitration. In the event that any dispute should arise
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between the parties regarding the meaning or effect of this Agreement, which
dispute cannot be resolved by the parties, the parties shall appoint a panel of
three persons as arbitrators. The Employee shall appoint one such arbitrator,
the Employer shall appoint another, and the third shall be appointed by the
first two arbitrators. Proceedings under this Section may be initiated by either
party informing the other in writing of the necessity or desirability of
arbitration and the subject matter of the arbitration. The parties shall select
the first two arbitrators within thirty (30) days after such notice has been
sent. The panel of two arbitrators shall select the third arbitrator within
thirty (30) days after their appointment from a list or lists of eligible
persons submitted to them by the parties. Proceedings under this Section shall
be commenced and pursued as expeditiously as possible. The parties shall
compensate the arbitrators selected by him or it. All other costs of the
arbitration shall be borne equally between the parties. All proceedings, the
enforceability of any award, and all other matters pertaining to the arbitration
shall be governed by the Uniform Arbitration Act in force in the State of
Arizona or any applicable succeeding legislation.
Section 8.09. Gender and Number. Whenever used herein, the singular shall
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include the plural, the plural the singular and the use of any gender shall be
applicable to all genders.
Section 8.10. Captions. The captions set forth in this Agreement have been
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used solely for convenience of reference and shall not control or affect the
meaning or interpretation of any of the provisions.
Section 8.11. Counterparts. This Agreement may be executed in one or more
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counterparts, each of which when fully executed shall be deemed an original
hereof.
Section 8.12. Severability of Provisions. If any term, covenant, condition
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or provision of this Agreement or the application thereof to any person or
circumstance shall, at any time, or to any extent, be invalid or unenforceable,
the remainder of this Agreement or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term, covenant, condition
and provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.
Section 8.13. Construction. Employee acknowledges that he has had
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sufficient opportunity to consult with legal counsel and with such other experts
and advisors as he has deemed necessary in connection with the negotiation,
execution and delivery of this Agreement. This Agreement shall be construed
without regard to any presumption or rule requiring that it be construed against
the party causing it or any part thereof to be drafted.
Section 8.14. Notice to and Consent of Parent. The parties acknowledge that
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Employee may serve as a Director and President and/or other officers of
Employer. Notwithstanding anything in this Agreement expressly or by implication
to the contrary, Employee may not exercise any rights of Employer pursuant to
this Agreement and all requirements for the determination, discretion, approval
or consent of, or notice to, and similar terms and references, either the
Employer or the Board of Directors of the Employer shall include the requirement
of a corresponding determination, discretion, approval or consent of, or notice
to the Parent. This includes, by way of example and not limitation, the
requirement for Parent's consent to amend or modify this Agreement or extend or
reduce its term or terminate it, to increase Employee's salary and/or benefits,
to approve Employee expenses and Employer expense procedures, and to waive any
rights under Section 7.03 or any other provision of this Agreement. For the
purposes of the determination, discretion, approval or consent of, or notice to
the Parent under this Section, "Parent" shall mean such one or more designated
representatives of Parent who are either officers or directors of Employer;
otherwise all of the officers and directors of Employer, other than Employee,
who are also either officers or directors of Parent; otherwise, the President of
the Parent.
Section 8.15. Submission of Agreement. The submission of this Agreement for
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examination does not constitute a reservation of or option for employment with
Employer, and this Agreement shall become effective as an employment agreement
only upon the execution thereof by both Employee and Employer and delivery of
such executed Agreement by each party to the other.
IN WITNESS WHEREOF, the parties have executed this Agreement at Scottsdale,
Arizona, on the thirtieth (30th) day of September, 1999, with the intent to be
legally bound.
ATTEST: EMPLOYER:
By: /s/ Xxxxxx Xxxxxxxx By: /s/ E. Michael Zaworksi
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Secretary President
(Corporate Seal)
EMPLOYEE:
By: /s/ Xxxx X. Xxxxx By: /s/ E. Michael Zaworksi
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Witness E. Xxxxxxx Xxxxxxxx
