EMPLOYMENT AGREEMENT
AGREEMENT made as of this lst day of January, 1997 by and between
CENTURY COMMUNICATIONS CORP., a corporation organized and subsisting under the
laws of New Jersey, and whose address for the purposes of this Agreement is 00
Xxxxxx Xxxxxx, Xxx Xxxxxx, XX 00000 (the "Company"), and XXXXX XXX, an
individual, residing at 00 Xxxxxxxxxx Xxxx, Xxxx Xxxxxx, XX 00000 ("Employee").
W I T N E S S E T H:
WHEREAS:
A. The Employee is presently employed by the Company as President
of Century Advertising, a division of the Company, in charge of the Company's
advertising marketing and sales and is presently a Vice-President of the
Company.
B. The Company desires that it continue to employ the Employee in
such capacity or such other capacities as may be permitted by this Agreement,
and under all of the terms, provisions and conditions set forth herein.
C. Employee is willing to accept such continued employment, and
such other employment as may be provided for herein, all under the terms,
provisions and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth and other good and valuable consideration, the receipt and
adequacy of which is mutually acknowledged, it is agreed by and between the
parties as follows:
1. Representations and Warranties
1.1 Employee represents and warrants that he is not subject to
any restrictive covenants or other agreements or legal restrictions in favor of
any person which would in any way preclude, inhibit, impair or limit his
employment by the Company or the performance of his duties, all as contemplated
herein.
2. Employment
2.1 The Company hereby employs Employee and Employee accepts such
employment as President of Century Advertising, a division of the Company, in
charge of the Company's advertising, marketing and sales. As such Employee shall
supervise and be responsible for the activities of the Company pertaining to
advertising, marketing and sales of its products and services including but not
limited to preparation and dissemination of advertisng (via print, television
and other media, and whether consisting of commercials and other forms of
advertising) and marketing and promotional materials and the personnel related
thereto, and shall also include preparation of advertising, marketing and
promotional materials for third parties, all subject to the direction and
control of the chief executive officer, the chief operating officer and/or the
Board of Directors of the Company. At the direction of the chief operating
officer, chief executive officer and/or Board of Directors of the Company,
Employee shall also serve in such other executive and/or administrative
capacities with any subsidiaries of the Company ("Subsidiaries" or individually
a "Subsidiary", as hereafter defined), as the Board of Directors or the chief
operating officer or the chief executive officer of the Company may determine.
2.2 Subject to Employee's election as such by the Board of
Directors and/or the Board of Directors of one or more Subsidiaries, Employee
agrees to act and serve as an officer of the Company and of all applicable
Subsidiaries and, if duly elected, agrees further to serve and act as a director
of the Company and all applicable Subsidiaries. Employee also agrees to adhere
to all fiduciary duties and responsibilities inherent in (i) his office(s), (ii)
as an officer of any of the Subsidiaries to which he may be elected and (iii) if
elected, as a director of the Company and of any Subsidiaries, and to comply
with all applicable laws relating to same.
3. Place of Employment
3.1 Employee shall render his services where and as required by
the Company, it being understood and agreed, however, that Employee's base of
operations shall be the Greater Philadelphia, PA area and that Employee shall
not be required to render his services on a permanent basis outside of said
area. In conformance with the foregoing and not in limitation thereof, Employee
agrees to take such trips outside said area from time to time as shall be
consistent with or reasonably necessary in connection with his duties.
4. Term
4.1 The term of this Agreement (the "Term") shall be three
consecutive years commencing January 1, 1997 and expiring on December 31, 1999.
4.2 In the event this Employment Agreement has not then been
terminated, the parties hereto agree that within the last six months of the
Term, they shall meet to negotiate the terms and provisions relating to a
renewal or extension of this Agreement, it being understood and agreed that
nothing herein shall obligate either of the parties to come to agreement with
respect to any such renewal or extension.
5. Compensation
5.1 Subject to prior termination, as compensation for all
services rendered and to be rendered by Employee hereunder and the fulfillment
by Employee of all of his obligations herein, the Company shall pay Employee a
base salary (the "Base Salary") at the rate of $162,500 per year for each year
of the Term on such days as the Company normally pays its employees and subject
to such withholdings as may be required by law. The Base Salary for each of the
second and third years of the Term (an "Applicable Year"), as the case may be,
shall be increased by the percentage increase in the Consumer Price Index
prepared by the United States Labor Department for the United States as a whole,
or equivalent measure of increase in the cost of living if such Consumer Price
Index is not then being issued (hereafter sometimes referred to as the "Consumer
Price Index"), for the last calendar month in the year immediately preceding
such Applicable Year (the "Preceding Year") over and above such Consumer Price
Index for the corresponding month of the year immediately preceding the
"Preceding Years". Additionally, the Company may (but shall not be required to)
adjust upward the Base Salary based on the performance of Century Advertising.
5.2 Nothing herein shall prevent or preclude the Board of
Directors of the Company or the applicable committee of the Board of Directors,
in its sole discretion, and from time to time, from awarding a bonus or bonuses
to Employee for his services as an Employee and/or from awarding or granting
Employee (i) options to acquire shares of stock in the Company or (ii) shares of
stock in the Company or (iii) any other incentive or stock related awards in
addition to Base Salary. In exercising its discretion with respect to whether a
bonus should be awarded and the amount thereof, the Board or the applicable
Committee may consider among other factors, the contribution of Employee (i) to
the growth in revenues, cash flow and
subscribers of the Company and those subsidiaries to or for which Employee
renders service, (ii) in connection with acquisitions, offering of securities
and various financings, and (iii) to the operations of the Company and its
various subsidiaries.
6. Reimbursement for Business Expenses Fringe Benefits
6.1 The Company agrees that all reasonable expenses incurred by
Employee in the discharge and fulfillment of his duties for the Company, as set
forth in Section 2, will be reimbursed or paid by the Company upon written
substantiation therefor signed by Employee, itemizing said expenses and
containing all applicable vouchers. Without limitation of the foregoing the
Company shall provide Employee with an automobile for use by Employee in the
performance of his duties, as well as the maintenance thereof. The automobile
shall be of the type presently being provided to Employee by the Company and
shall be no more than three years old.
6.2 The Company agrees that it will cause Employee to be insured
under such group life, medical, major medical and disability insurance that the
Company may maintain and keep in force from time to time during the Term for the
benefit of all of the Company employees, subject to the terms, provisions and
conditions of such insurance and the agreements with underwriters relating to
same. It is understood and agreed that in its discretion the Company, from time
to time may terminate or modify any or all of such insurance without obligation
or liability to Employee.
7. Exclusivity
7.1 During the Term, employee agrees to devote his services and
his best energies and abilities, exclusively, to the business and activities of
the Company, including any
Subsidiaries, and not engage or have an interest in or perform services for any
other business or entity of any kind or nature; provided, however, that nothing
herein shall prevent Employee from investing in (but not rendering services to)
other businesses (other than for charitable organizations, provided same does
not interfere with Employee's performance of his duties hereunder) which are not
competitive in any manner with the business then being conducted by the Company
or any of its Subsidiaries, or in investing in (but not rendering services to)
other businesses which are competitive in any manner with the business then
being constructed by the Company, provided in the latter instance, that (i) the
shares of such business are listed and traded over either a national securities
exchange or in the over-the-counter market, and (ii) employee's stock interest
or potential stock interest (based on grants, options, warrants, or other
arrangements or agreements then in existence) in any such business which is so
traded (together with any and all interest, actual and potential, of all members
of Employee's immediate family) is not a controlling or substantial interest and
specifically does not exceed one percent of the issued and outstanding shares or
a one percentage interest of or in such business.
8. Uniqueness
8.1 Employee agrees that his services hereunder are special,
unique and extraordinary and that in the event of any material breach or
attempted material breach of this Agreement by Employee including, without
limitation, the provisions of Section 9 and 10, the Company will sustain
substantial injury and damage, and Employee hereby consents and agrees that, in
the event of breach hereof, the Company shall be entitled to injunctive relief
against Employee or any third party to prevent or in respect of any such breach,
in addition to such other rights or remedies available to it. Employee's said
consent and agreement shall not survive the
expiration date set forth in Section 4.1 (December 31, 1999) except as same
relates to any of Employee's obligations pursuant to Section 9.1 and 10.1
hereof.
9. Trade Secrets
9.1 Employee acknowledges that his employment hereunder will
necessarily involve his understanding of and access to certain trade secrets and
confidential information pertaining to the businesses and activities of the
Company and its Subsidiaries. Accordingly, Employee agrees that during the
period of employment and at all times thereafter, he will not disclose to any
unauthorized third party any such trade secrets or confidential information and
will not (other than in connection with carrying out his duties) for any reason
remove or retain without the express consent of the Company any figures or
calculations, letters, papers, records, or other information of a type likely to
be regarded as confidential. The provisions of this Section shall survive the
expiration or the termination, for any reason, of this Agreement or the
Employee's employment.
10. Inventions, Creations
10.1 All right, title and interest of every kind and nature
whatsoever in and to inventions, patents, trademarks, copyrights, films,
scripts, ideas, creations, intellectual property and literary, intellectual and
other properties furnished to the Company or any of its Subsidiaries and/or used
in connection with any of the activities of the Company or any of its
Subsidiaries, or with which employee is connected or associated in connection
with the performance of his services, shall as between the parties hereto be,
become and remain the sole and exclusive property of the Company or any of its
Subsidiaries, as the case may be, for any and all purposes and uses whatsoever,
regardless of whether the same were invented, created, written, developed,
furnished, produced or disclosed by Employee or by any other party, and Employee
shall have no
right, title or interest of any kind or nature therein or thereto, or in any
results and proceeds therefrom. Employee agrees that both during and after the
term hereof to execute any and all documents which the Company may deem
necessary on appropriate to effectuate the provisions of this Section 10.1 and,
further, that the provisions of this Section shall survive the expiration or the
termination, for any reason, of this Agreement or Employee's employment.
11. Death - Permanent Incapacity
11.1 The death of Employee shall work an immediate termination of
this Agreement, in which event no additional Base Salary shall be paid to
Employee except that the payments of Base Salary, to which Employee would have
been entitled to receive were he not deceased and were he fully performing his
obligations hereunder, shall continue to be paid to his estate or legal
representatives during the balance of the Term.
11.2 In the event Employee suffers a disability which prevents
him from performing his services hereunder (herein called "Disability"), and in
the event such Disability continues for longer than 90 consecutive days or 120
days in any 12-month period, Employee shall be deemed to have suffered a
Permanent Incapacity, in which event the Company shall have the right to
terminate this Agreement upon not less than fifteen days' notice to Employee,
and this Agreement shall terminate on the date set forth therefor in said
notice.
Upon termination of this Agreement by reason of such Permanent
Incapacity, Employee's Base Salary shall continue to be paid to Employee or his
legal representatives during the greater of (i) the balance of the Term, and
(ii) a period of not less than 12 months.
11.3 In the event there is a dispute between the parties as to
whether or not Employee has suffered a Permanent Incapacity, same shall be
determined by an impartial physician located in the City of New York and agreed
upon by the parties or, failing agreement
within 10 days of a written request therefor by either of the parties to the
other, then such a physician as may be designated by the then acting President
of the New York Academy of Medicine or if he fails or is unable to designate
such impartial physician, then one designated by the Chief of Medicine at one of
the following hospitals or medical centers located in New York City and selected
by the Company: (i) New York Hospital, (ii) Columbia Presbyterian Hospital, (ii)
New York University (or Tisch) Hospital, (iv) Mt. Sinai Hospital, and if no such
hospital shall designate such physician, as designated by the American
Arbitration Association. The determination of any such physician shall be final
and binding upon the parties hereto. In the event any of said hospitals is
merged or consolidated with or into, or is acquired by another of said
hospitals, the surviving hospital in such merger, consolidation or acquisition
shall be deemed to be one of the designated hospitals.
12. Termination
12.1 In addition to termination pursuant to Section 11,
Employee's employment hereunder may be terminated for "cause". "Cause" for
purposes of this Agreement shall mean the following:
(i) alcoholism or drug addition materially affecting Employee's
performance, (ii) convictcomply within a periodving moral turpitude,
(iii) failure to of ten business days with a reasonable directive of the
chief executive or chief operating officer, or the Board of Directors of
the Company relating to Employee's duties or Employee's performance and
consistent with Employee's position, after written notice that such
failure will be deemed to be "cause", to the extent such failure can be
cured within such ten business days and if not so curable, fails to
commence curing during said ten-day period, and diligently pursue the
curing of same until cured, (iv) gross neglect or
gross misconduct of Employee in carrying out his duties under this
Agreement, resulting, in either case, in material economic harm to the
Company, unless Employee believed in good faith that such act or nonact
was in the best interests of the Company and, (v) misappropriation of
corporate assets or corporate opportunity or other act of dishonesty or
breach of fiduciary obligation to the Company.
12.2 In the event the Company terminates this Agreement and
Employee's employment other than for "cause", and other than for death or
disability, Employee shall be entitled, in addition to whatever other rights and
remedies which may be available to him, to the following, subject to the
applicable provisions of the Company's 1985 and 1994 Employee Stock Option
Plans, the Company's 1992 Management Equity Incentive Plan and other applicable
Plans: (i) the right to exercise any stock option in full, whether or not then
fully exercisable, for the remainder of the original term of such option, (ii)
the balance of payments of Base Salary, to be paid at the times they would
otherwise have become payable to Employee pursuant to the terms of this
Agreement and (iii) a cash bonus payable for each remaining year of the term (or
fraction of year if termination occurs during a particular year of the term and
a bonus has not previously been paid to Employee for such year) in an amount
equal to the most recently paid cash bonus paid to Employee. Additionally, any
restrictions on shares of stock previously issued to Employee shall be deemed
inoperative and of no further force and effect.
12.3 Employee shall be deemed to have been terminated without
cause if, without Employee's written consent, (i) he is not elected a
Vice-President (or office of equal or greater rank) of the Company, (ii) his
Base Salary is reduced, (iii) he is relocated in violation of Section 3.1 or
(iv) there has been a material diminution in the Employee's duties or the
assignment to Employee of duties which are materially inconsistent with his
duties or which materially impair
the Employee's ability to function as President of Century Advertising and in
charge of the Company's advertising, marketing and sales.
13. Vacation
13.1 Employee shall be entitled to a vacation of four weeks
duration in the aggregate during each year of the Term at times reasonably
agreeable to both Employee and the Company, it being understood that any portion
of such vacation not taken in such year shall not be available to be taken
during any other year.
14. Insurance
14.1 In addition to insurance referenced in Section 6.2, Employee
agrees that the Company or any Subsidiary may apply for and secure and/or own
and/or be the beneficiary of insurance on the Employee's life or disability
insurance (in each instance in amounts determined by the Company), and Employee
agrees to cooperate fully in the applying and securing of same, including,
without limitation, the submission to various physical and other examinations
and the answering of questions and furnishing of information as may be required
by various insurance carriers. However, nothing contained herein shall require
the Company to obtain any such life or disability insurance.
15. Miscellaneous
15.1 The Company shall have the right to assign this Agreement
and to delegate all duties and obligations hereunder to any successor,
affiliated or parent company or to any person, firm or corporation which
acquires the Company or substantially all of its assets, or with or into which
the Company may consolidate or merge. This Agreement shall be binding upon and
inure to the benefit of the permitted successors and assigns of the Company.
Employee agrees that this Agreement is personal to him and may not be assigned
by him.
15.2 This Agreement is being delivered in the State of
Connecticut and shall be construed and enforced in accordance with the laws of
such State applicable to contracts made and fully to be performed therein, and
without any reference to any rules of conflicts of laws.
15.3 Except as may herein otherwise be provided, all notices,
requests, demands and other communications hereunder shall be in writing and
shall be deemed to have been duly given if delivered personally or if mailed,
first class postage prepaid, registered or certified mail, return receipt
requested, or if sent by telecopier or overnight express delivery service, (a)
to Employee at his address set forth on the first page hereof or at such other
address as Employee may have notified the Company sent by registered or
certified mail, return receipt requested, or if sent by telecopier or overnight
express delivery service, or (b) if to the Company, at its address set forth on
the first page hereof, attention: Chairman of the Board, or at such other
address as the Company may have notified employee in writing sent by registered
or certified mail, return receipt requested or by telecopier or overnight
express delivery service, and with a copy to Xxxxx, Xxxxxxxxxx & Xxxxx, 00 Xxxx
00xx Xxxxxx, Xxx Xxxx, XX 00000 10036 (Attention: Xxxxx X. Xxxxxxxxxx, Esqs.).
Notice shall be deemed given (i) upon personal delivery, or (ii) on the second
business day immediately succeeding the posting of same, prepaid, in the U.S.
mail, (iii) on the date sent by telecopy if the addressee has compatible
receiving equipment and provided the transmittal is made on a business day
during the hours of 9:00 A.M. to 6:00 P.M. of the receiving party and if sent on
other times, on the immediately succeeding business day, or (iv) on the first
business day immediately succeeding delivery to the express overnight carrier
for the next business day delivery.
15.4 This Agreement may be executed simultaneously 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. Each party shall deliver such further instruments
and take such further action as may be reasonably requested by the other in
order to carry out the provisions and purposes of this Agreement. This Agreement
represents the entire understanding of the parties with reference to the
transaction set forth herein and neither this Agreement nor any provision
thereof may be modified, discharged or terminated except by an agreement in
writing signed by the party against whom the enforcement of any waiver, change,
discharge or termination is sought. Any waiver by either party of a breach of
any provision of this Agreement must be in writing and no waiver of a particular
breach shall operate as or be construed as a waiver of any subsequent breach
thereof.
15.5 "Subsidiaries" or "Subsidiary" shall include and mean any
corporation, partnership or other entity 50% or more of the then issued and
outstanding voting stock is owned directly or indirectly by the Company in the
instance of a Corporation, and 50% or more of the interest in capital or in
profits is owned directly or indirectly by the Company in the instance of a
partnership and/or other entity, or any corporation, partnership, venture or
other entity, the business of which is managed by the Company or any of its
Subsidiaries.
IN WITNESS WHEREOF, the parties hereto have executed and have caused
this Agreement to be executed as of the day and year first above written.
CENTURY COMMUNICATIONS CORP.
By: /s/ XXXXXXX X. XXXXXXXXX
---------------------------------
Its President
By: /s/ XXXXX XXX
---------------------------------
XXXXX XXX
