EMPLOYMENT AGREEMENT
This Agreement dated as of April 15, 1996 by and between HA-LO INDUSTRIES,
INC., an Illinois corporation (hereinafter the "Company"), and XXXXXXX XXXXXXX,
(hereinafter referred to as the "Executive").
W I T N E S S E T H
WHEREAS, the Company and the Executive desire to enter into this Agreement,
whereby the Company will be assured of the right to the Executive's services,
skills and expertise for the period and on the terms and conditions hereinafter
set forth, and the Executive will be assured of employment on such terms and
conditions.
1. EMPLOYMENT. Subject to the terms and conditions hereinafter set
forth, the Company hereby employs the Executive as Vice President
Corporate Development and Financial Relations, of the Company and the
Executive hereby accepts such employment.
2. TERM. Subject to earlier termination in accordance with the provisions
of Section 6 of this Agreement, the term of the employment of the
Executive by the Company pursuant to this Agreement (the "Term") shall
be for a period of one (1) year, commencing on the date of closing
under this Agreement provided however, that the Term shall be
automatically extended, unless either party elects not to do so and
gives written notice to the other party at least ninety (90) days
prior to such scheduled termination date of their election not to so
extend.
3. EMPLOYMENT SERVICES. During the Term of his employment pursuant to
this Agreement, the Executive shall render his services to the Company
as Vice President Corporate Development and Financial Relations, of
the Company, or in such other capacities as the President or Board of
Directors of the Company may, from time to time, reasonably designate.
The Executive shall report to the Chief Financial Officer of the
Company in the performance of his duties hereunder. The Executive
shall devote all of his business time, efforts and his energy and
skill to the business of the company and, the Executive will not
engage in the active operation of any other business.
4. COMPENSATION. In consideration of the services to be rendered by the
Executive to the Company pursuant to this Agreement, the Company
agrees to pay the executive during the Term, and the Executive agrees
to accept the following:
a. A base salary at the rate of One Hundred Twenty-Five Thousand
Dollars ($125,000) per annum, payable in installments during the
Term hereof in accordance with the normal practice of the
Company.
b. Discretionary bonus being determined by the President or Board of
Directors.
c. Upon execution of this Agreement, the Executive shall receive
options ("Options") to purchase ten thousand (10,000) shares of
the Company's common stock. The Options shall be issued pursuant
to the HA-LO Industries, Inc. Stock Plan and shall be exercisable
at a purchase price equal to the Fair Market Value at the date of
grant (as defined in the Stock Plan). The Options shall vest and
be exercisable by Executive one year from date of grant.
i. Except as provided below, the Option shall be valid for a
term commencing as of the date of grant ("Date of Grant")
and ending ten (10) years from the date of Grant (the
"Termination Date").
ii. If Executive is in default or otherwise breaches the
covenants set forth in this Agreement, or otherwise ceases
to be employed by the Company for any reason other than
death, permanent disability or a "change in control" (as
hereinafter defined), all unvested Options shall be
immediately forfeited and all vested Options previously
granted to executive shall be exercisable at any time prior
to the earlier of (i) the Termination date, or (ii) within
sixty (60) days after the date of Executive's breach of this
Agreement, or termination of employment.
iii. For purposes of this agreement, the term "change in control"
shall mean the acquisition, on or after the date of this
Agreement, of more than fifty percent (50%) of the voting
rights with respect to outstanding common capital stock of
Employer, by a person, or group of persons acting in
concert, other than Xxx Xxxxxxxx.
a. Performance is to be reviewed initially at six (6) months and
compensation reviewed annually.
5. EMPLOYEE BENEFITS. During the Term of this Agreement, the Executive
shall be entitled to the following benefits:
a. The Executive shall be entitled to participate, subject to
qualification requirements, in medical or other insurance or
hospitalization plans which are presently maintained or
hereinafter instituted by the Company and are made generally
available to employees of the Company.
b. The Company shall reimburse the Executive for reasonable
out-of-pocket business expenses which the Executive shall incur
in connection with his services for the Company hereunder in
accordance with Company policy upon presentation by the Executive
of appropriate support.
c. Subject to the rules of the Company, the Executive shall be
entitled to vacation leave of four (4) weeks during any calendar
year.
d. Subject to qualifications and other requirements, the Executive
shall be entitled to participate in any profit sharing/401(k),
bonus or management incentives (including Non-Qualified Key
Employee Plan), pension, retirement or insurance plan maintained
by the Company and made generally available to employees of the
Company.
6. TERMINATION.
i. The Term of this Agreement and the Executive's employment
hereunder shall terminate upon the first to occur of the
following events: (1) the mutual agreement of the Company and
the Executive to so terminate this Agreement, (2) the death or
disability (as hereinafter defined) of the Executive, or (3) the
Company's election to terminate this Agreement and the
Executive's employment hereunder "For Cause" (as hereinafter
defined). The term "Disability" shall mean any mental, physical
or emotional disability or condition which is reasonably expected
to last for one hundred twenty (120) days or more, and which
prevents the Executive from performing substantially all of his
duties hereunder. Disability shall be determined by a physician
selected by the Company with reasonable approval of Executive.
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ii. The term "For Cause" shall mean any of the following: A) the
commission by the Executive of a breach of any material covenant,
provision, term or condition set forth in this Agreement; or B)
the commission by the Executive of a felony or crime; or C) the
commission by the Executive of an act of personal dishonesty or
fraud involving personal profit, including, without limitation,
theft, embezzlement, fraud or other misappropriation of funds.
iii. In the event that there is a "change in control", as previously
defined, in the initial 12 months of employment and the Executive
is terminated because of this, the Company shall be obliged to
continue to pay the Executive his salary for one year.
7. EXECUTIVE'S REPRESENTATION. The Executive hereby represents and
warrant to and with the Company that the Executive is not subject to
any covenants, agreements or restrictions including without limitation
any covenants, agreement or restrictions arising out of the
Executive's prior employment or independent contractor relationships,
which would be breached or violated by the Executive's execution of
this Agreement or by Executive's performance of his duties hereunder.
8. CONFIDENTIALITY. Executive acknowledges that by virtue of his
employment with Company, he has been and/or will be exposed to or has
had or will have access to confidential information regarding
Company's business, including but not limited to, trade secrets and
proprietary information, all of which are proprietary to Company
referred to collectively as "Proprietary Information". Executive
acknowledges that Company's Proprietary Information constitutes a
proprietary and exclusive interest of Company, and, therefore, agrees
that during the term of his employment and thereafter, for any reason
whatsoever, Executive shall hold and keep secret the Proprietary
Information as described herein, as to which the Executive is now or
any time during his employment shall become informed, and Executive
shall not directly or indirectly disclose any such information to any
person, firm, court, governmental agency or corporation or use the
same except in connection with the business and affairs of Company.
9. NON-DISTURBANCE OF EMPLOYEES; NON-DISPARAGEMENT. The Executive
covenants that during the Term and for a period of two (2) years after
the termination thereof, for any reason whatsoever, the Executive
shall not, directly or indirectly, as an employee, agent, salesman or
member of any person, corporation, firm or otherwise (a) solicit any
employee, agent or independent contractor sales representative of the
Company, the product of which contact will or may yield a termination
of relationship of such employment, agency or independent contractor
sales representative relationship of such employees, agents or
independent contract sales representatives from the Company, or (b)
make, whether in writing or orally, disparaging statements or
inferences with respect to the company, its respective business,
officers or shareholders.
10. RETURN OF MATERIALS. The Executive will, at any time upon the
request of the Company, and in any event upon the termination of his
employment, for whatever reason, immediately return and surrender to
the company originals and all copies of all records, notes, memoranda,
electronic files, personal computers, computer discs, computer
equipment, telephones, price lists, customer and customer prospects
lists, business plans, recordings and other documents and other
property belonging to the Company, created or obtained by the
Executive as a result of or in the course of or in connection with the
Executive's employment with the Company. The executive acknowledges
that all such materials are, and will always remain, the exclusive
property of the Company.
11. REVISION. In the event that any of the provisions, covenants,
warranties or agreements in this Agreement are held to be in any
respect an unreasonable restriction upon or are otherwise
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invalid, for whatsoever cause, then the court so holding shall reduce
and is so authorized to reduce, the territory to which it pertains
and/or the period of time in which it operates, to the scope of
activity to which it pertains or effect any other change to the extent
necessary to render any of the restrictions of the Agreements
enforceable.
12. GENERAL PROVISIONS.
a. SEVERABILITY. Each of the terms and provisions of this
Agreement is to be deemed severable in whole or in part and,
if any term or provision of the application thereof in any
circumstances should be invalid, illegal or unenforceable, the
remaining terms and provisions or the application thereof to
circumstances other than those as to which it is held invalid,
illegal or unenforceable, shall not be affected thereby and
shall remain in full force and effect.
b. BINDING AGREEMENT. This Agreement shall be binding upon the
parties, their heirs, successors, personal representatives and
assigns. The Company may assign this agreement to any
successor in the interest to the business, or part thereof, of
the Company. The Executive may not assign any of his
obligations or duties hereunder.
c. CONTROLLING LAW AND JURISDICTION. This Agreement shall be
governed by and interpreted and construed according to the
laws of the State of Illinois. The Executive hereby consents
to the jurisdiction of the state and federal courts in Illinois
in the event that any disputes arise under this Agreement.
d. ENTIRE AGREEMENT. This instrument contains the entire
agreement of the parties with regard to the subject matter
hereof, may not be changed orally, but only by an agreement in
writing signed by the parties hereto.
e. FAILURE TO ENFORCE. The failure to enforce any of the
provisions of this Agreement shall not be construed as a waiver
of such provisions. Further, any express waiver by any party
with respect to any breach of any provision hereunder by any
other party shall not constitute a waiver of such party's
right to thereafter fully enforce each and every provision of
the Agreement.
f. SURVIVAL. Subject to the provisions hereof, the obligations
contained in this Agreement shall survive the termination, for
any reason whatsoever, for cause or otherwise, of the
Executive's employment with the Company.
g. HEADINGS. All numbers and headings of sections are for
reference only and are not intended to qualify, limit or
otherwise affect the meaning or interpretation of any Section.
h. NOTICES. All notices which are required, permitted or
contemplated hereunder to be given or made shall be given or
made in writing by certified mail (return receipt required) to
the Executive at 0000 X. XXXXXXXXX, XXXXXXX, XX 00000, and to
the Company at 0000 Xxxx Xxxxx Xxxxxx, Xxxxx, Xxxxxxxx, 00000,
Attention: President.
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i. GENDER. The masculine, feminine or neuter pronouns used herein
shall be interpreted without regard to gender, and the use of
the singular or plural shall be deemed to include the other
whenever the context so requires.
WHEREFORE, the parties have executed this Agreement on the date and year first
above written.
HA-LO INDUSTRIES, INC. EXECUTIVE:
By: Xxxxxxx X. Xxxxx Xxxxxxx Xxxxxxx
Its: Chief Financial Officer
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