FORM OF EMPLOYMENT AGREEMENT Coro Ware Technologies, Inc.
Coro
Xxxx Technologies, Inc.
This
EMPLOYMENT AGREEMENT ("Agreement")
is
made and entered into this ___ day of _____ 2006 effective as of _______, 2006
by and between _____________ (the "Employee")
and
CoroWare Technologies, Inc., a Florida corporation (the "Corporation").
Collectively, the Corporation and the Employee are referred to herein as the
"Parties"
and
sometimes individually as a "Party."
RECITALS:
A.
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Corporation
is in the primary business of developing, marketing and selling software
engineering solutions for the robotic and general marketplace for
use in
the operation of robots and automated systems for the industrial
and
service markets as well as enterprise wide software solutions.
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B.
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Employee
has substantial experience that the Corporation believes to be valuable
to
it.
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C.
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The
Corporation desires to employ the Employee and the Employee desires
to
accept such employment.
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NOW
THEREFORE, in consideration of the promises, mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt
and
sufficiency of which are hereby acknowledged, the Corporation and the Employee
do hereby agree as follows:
1. Employment
and Duties.
On the
terms and subject to the job conditions set forth in this Agreement, the
Corporation shall employ the Employee as the ______, and to perform such duties
as are consistent with such position as may be assigned, from time to time,
by
the president of the Corporation and to render such additional services and
discharge such other responsibilities as the Corporation may, from time to
time,
stipulate.
2. Performance.
The
Employee accepts the employment described in Paragraph
1
of this
Agreement and agrees to devote all of his business time and efforts to the
faithful and diligent performance of the services described therein, including
the performance of such other services and responsibilities as the Corporation
may, from time to time, stipulate.
3. Term.
The
term of employment under this Agreement is effective as of ________, 2006 (the
"Commencement
Date")
and
shall remain in effect for a period of one (1) year from the date Employee
first
became an Employee, ending on _______ (the “Termination
Date”)
(and
each subsequent one year anniversary, if extended, as provided herein shall
also
be referred to herein as a Termination Date) unless sooner terminated hereunder
(the "Employment
Period").
This
Agreement shall be automatically extended each year for an additional one (1)
year period unless terminated by either party by giving written notice to the
other no less than sixty (60) days prior to the Termination Date.
4. Compensation.
a.
Salary.
During
the Term, the Corporation shall pay the Employee a salary in the amount of
___________________ Dollars ($________) per month. payable monthly in accordance
with regular payroll practices.
b.
Bonus.
Employee shall be entitled to an annual incentive bonus for the first twelve
month period of employment based on sales of no less than $1.9 Million for
that
twelve month period of employment. If the Corporation achieves sales of $1.9
million, Employee shall receive a bonus equal to 10% of salary. For each $75,000
in excess of $1.9 million, Employee shall receive an additional bonus of 1%
of
salary up to a maximum of an additional 10% of salary for a total of 20% of
salary. Such bonus shall be payable only upon declaration by the Board of
Directors.
c.
Stock
Options.
Innova
Holdings, Inc., parent corporation to the Corporation, shall grant _______
stock
options in the first year of employment only to the Employee pursuant to the
Stock Option Plan of Innova Holdings, Inc. at an exercise price of $0.018 per
share. All options shall vest annually from the grant date over a three year
period and shall terminate on the tenth anniversary of the date of grant.
Thereafter, the grant of additional options, if any, shall be in the sole
discretion of the Board of Directors of Innova Holdings, Inc.
d.
Vacation.
The
Employee shall have 10 days of paid vacation
in each twelve month period earning such vacation pro-rata during the twelve
month employment period beginning on the Commencement Date.
5. Benefits.
The
Employee shall be eligible for such benefits as are offered to other Employees
of Innova Holdings, Inc. in similar positions and on such terms as the
Corporation shall determine in its sole discretion which as of the current
date
includes an Employee medical program which includes health, dental and vision
coverage.
6. Location.
The
Employee shall perform the duties required of him at the office of the
Corporation located in the state of Washington as designated by the Corporation
or at such other locations as the Corporation may specify from time to
time.
7. Surrender
of Properties.
Upon
termination of the Employee's employment with the Corporation, regardless of
the
cause therefore, the Employee shall promptly surrender to the Corporation all
property provided Employee by the Corporation for use in relation to Employee’s
employment, and, in addition, the Employee shall surrender to the Corporation
any and all business plans, marketing, sales, system integrators, production,
financial and tax records, accounting and budget work papers, correspondence
relating to SEC or legal matter, any other materials related to financial or
SEC
matters, sales materials, lists of customers and prospective customers, price
lists, files, patent applications, records, models, software files, customer
documentation, CoroWare internal or confidential documentation, listings, copies
of Windows® software, or other materials and information of or pertaining to the
Corporation or its customers or prospective customers or the products, business,
and operations of the Corporation.
8. Confidentiality
of Information; Duty of Non-Disclosure.
(a) The
Employee acknowledges and agrees that Employee’s employment by the Corporation
under this Agreement necessarily involves Employee’s understanding of and access
to certain trade secrets and confidential information pertaining to the business
of the Corporation. Accordingly, the Employee agrees that at all times after
the
date of this Agreement Employee will not, directly or indirectly, without the
express written consent of the Corporation, disclose to or use for the benefit
of any person, corporation or other entity, or for Employee any and all files,
trade secrets or other confidential information concerning the internal affairs
of the Corporation, including, but not limited to, information pertaining to
its
trade secrets, business plans, clients, services, products, earnings, finances,
manufacturing, operations, suppliers, methods or other activities, including
without limitation its overseas network of suppliers and other relations,
methods, distribution system or other activities ("Proprietary
Information");
provided, however, that the foregoing shall not apply to information which
is of
public record or is generally known, disclosed or available to the general
public or the industry generally. Further, the Employee agrees that Employee
shall not, directly or indirectly, remove or retain, without the express prior
written consent of the Corporation, and upon termination of this Agreement
for
any reason shall return to the Corporation, any figures, calculations, letters,
papers, records, computer disks, computer print-outs, lists, documents,
instruments, drawings, designs, programs, brochures, sales literature, business
plans or any copies thereof, or any information or instruments derived
therefrom, or any other similar information of any type or description, however
such information might be obtained or recorded, arising out of or in any way
relating to the business of the Corporation or obtained as a result of his
Employment by the Corporation except as disseminated to the public at large
or
industry generally. The Employee acknowledges that all of the foregoing are
proprietary information, and are the exclusive property of the Corporation.
The
covenants contained in this Section 8 shall survive Employee’s employment and
the termination of this Agreement.
(b) The
Employee agrees and acknowledges that the Corporation does not have any adequate
remedy at law for the breach or threatened breach by the Employee of Employee’s
covenant, and agrees that the Corporation shall be entitled to injunctive relief
to bar the Employee from such breach or threatened breach in addition to any
other remedies which may be available to the Corporation at law or in
equity.
9. Inventions,
Designs and Secrecy.
Except
as otherwise provided in this Section 9, the Employee: (a) shall hold
in a fiduciary capacity for the benefit of the Corporation all secret or
confidential information, knowledge, or data of the Corporation or its business
operations obtained by the Employee during Employee’s employment by the
Corporation, which shall not be generally known to the public or recognized
as
standard practice (whether or not developed by the Employee) and shall not,
during his employment by the Corporation and after the termination of such
Employment for any reason, communicate or divulge any such information,
knowledge or data to any person, firm or corporation other than the Corporation
or persons, firms or corporations designated by the Corporation; (b) shall
promptly disclose to the Corporation all designs, inventions, software programs,
ideas, devices, and processes made or conceived by Employee alone or jointly
with others, from the time of entering the Corporation's employment until such
employment is terminated and within the six (6) month period immediately
following such termination, relevant or pertinent in any way, whether directly
or indirectly, to the Corporation's business or production operations or
resulting from or suggested by any work which the Employee may have done for
the
Corporation or at its request; (c) shall, at all times during his
Employment with the Corporation, assist the Corporation in every proper way
(entirely at the Corporation's expense) to obtain and develop for the
Corporation's benefit patents or copyrights on such on such designs, software
programs, inventions, ideas, devices and processes including without limitation
software code, software, and software files and listings to be used with
industrial automation and industrial robots, whether or not patented;
trademarked, or copyrighted and (d) shall do all such acts and execute,
acknowledge and deliver all such instruments as may be necessary or desirable
in
the opinion of the Corporation to vest in the Corporation the entire interest
in
such designs, inventions, ideas, devices, and processes referred to above.
The
foregoing to the contrary notwithstanding, the Employee shall not be required
to
assign or offer to assign to the Corporation any of the Employee's rights in
any
invention for which no equipment, supplies, facility, or trade secret
information of the Corporation was used and which was developed entirely on
the
Employee's own time, unless (a) the design or invention related to
(i) the business of the Corporation or (ii) the Corporation's actual
or demonstrably anticipated research or development, or (b) the design,
software or invention results from any work performed by the Employee for the
Corporation. The Employee acknowledges Employee’s prior receipt of written
notification of the limitation set forth in the preceding sentence and the
Employee's obligation to assign or offer to assign to the Corporation the
Employee's rights in designs and inventions.
10. Covenant
Not to Compete.
(a) During
Employment Period.
During
the Employment Period, the Employee shall not engage its services for a firm
or
business that directly or indirectly competes with the business activities
of
the Corporation and its subsidiaries, nor engage in or in any manner be
connected or concerned, directly or indirectly, whether as an officer, director,
stockholder, partner, owner, employee, creditor, or otherwise, with the
operation, management, or conduct of any business that competes with or is
of a
nature similar to that of the Corporation.
(b) Following
Termination of Employment Period.
Within
the one (1) year period immediately following the later of the end of the
Employment Period or termination of the Employee's Employment with the
Corporation, for any reason except as set forth below, the Employee shall not,
without the prior written consent of the Corporation, which consent may be
withheld at the sole discretion of the Corporation: (a) engage in or in any
manner work on, or be connected or concerned, directly or indirectly, whether
as
an officer, director, stockholder, partner, owner, employee, creditor, or
otherwise with the operation, management, or conduct of any business that is
working on any project or similar type project or related area of work that
the
Employee participated in while with the Corporation or is directly competitive
with the Corporation, anywhere in the United States, and any other area in
which
the Corporation is, or reasonably contemplating, doing business at the time
of
such termination ; (b) solicit, contact, interfere with, or divert any
customer served by the Corporation, or any prospective customer identified
by or
on behalf of the Corporation, during the Employee's Employment with the
Corporation; or (c) solicit any person then or previously employed by the
Corporation to join the Employee, whether as a partner, agent, employee or
otherwise, in any enterprise engaged in a business similar to the business
of
the Corporation being conducted at the time of such termination. For purposes
of
this Agreement, the business is deemed to be the development and maintenance
of
computer software, controls, and hardware electronics for use in robotics,
manufacturing, motion control, and automation industries and that all such
software and hardware is owned and shall be exclusively owned by the
Corporation.
The
covenants contained in this Paragraph
10
shall
survive the termination of Employee's employment under this
Agreement.
11. Severability.
The
covenants of the Employee contained in Sections 8, 9, and 10 of this
Agreement shall each be construed as an agreement independent of any other
provision in this Agreement, and the existence of any claim or cause of action
of the Employee against the Corporation, whether predicated on this Agreement
or
otherwise, shall not constitute a defense to the enforcement by the Corporation
of such covenants. Both parties hereby expressly agree and contract that it
is
not the intention of either party to violate any public policy, or statutory
or
common law, and that if any sentence, paragraph, clause, or combination of
the
same of this Agreement is in violation of the law, such sentence, paragraph,
clause or combination of the same shall be void, and the remainder of such
paragraph and this Agreement shall remain binding on the parties to make the
covenants of this Agreement binding only to the extent that it may be lawfully
done. In the event that any part of any covenant of this Agreement is determined
by a court of law to be overly broad thereby making the covenant unenforceable,
the parties hereto agree, and it is their desire, that such court shall
substitute a judicially enforceable limitation in its place, and that as so
modified the covenant shall be binding upon the parties as if originally set
forth herein.
12. Termination.
(a) Termination
for Just Cause.
The
Corporation shall have the option to terminate the Employment Period, effective
immediately upon written notice of such termination to the Employee, for Just
Cause. For purposes of this Agreement, the term "Just Cause" shall mean the
occurrence of any one or more of the following events: (a) the death or
permanent total disability of the Employee or Employee’s absence from active
Employment by reason of illness or incapacity for a period of sixty (60)
consecutive days; (b) the breach by the Employee of Employee’s covenants
under this Agreement; (c) the commission by the Employee of theft or
embezzlement of Corporation property or other acts of dishonesty; (d) the
commission by the Employee of a crime resulting in injury to the business,
property or reputation of the Corporation or any affiliate of the Corporation
or
commission of other significant activities harmful to the business or reputation
of the Corporation or any affiliate of the Corporation; (e) the willful refusal
to perform or substantial neglect of the activities to be performed by the
Employee pursuant to Section 1
hereof;
or (f) termination of the business of the Corporation for any reason.
Upon
termination of the Employment period for Just Cause, the Employee shall have
no
rights to any future fees for any period beyond the effective date of
termination.
(b) Termination
without Just Cause.
If the
Employment Period is terminated by the Corporation without Just Cause during
the
first twelve month period of employment, the Employee shall receive a payment
equal to the lesser of (i) one month of his current salary or (ii) the
difference between the Salary he has already been paid for services and his
annual Salary.
If
Employee is terminated for Just Cause, Employee shall be entitled only to
reimbursement for Benefits and Salary accrued but unpaid through the date of
termination and shall receive no amount for severance.
14. General
Provisions.
(a) Goodwill.
The
Corporation has invested substantial time and money in the development of its
products and services, soliciting clients and creating goodwill. By accepting
this Employment Agreement with the Corporation, the Employee acknowledges that
the customers are the customers of the Corporation and that any goodwill created
by the Employee belongs to and shall inure to the benefit of the
Corporation.
(b) Notices.
Any
notice required or permitted hereunder shall be made in writing (i) either
by
actual delivery of the notice into the hands of the party thereunder entitled,
o
(ii) by the mailing of the notice in the United States mail, certified or
registered mail, return receipt requested, all postage prepaid and addressed
to
the party to whom the notice is to be given at the party's respective address
as
set forth in the records of the Corporation.
The
notice shall be deemed to be received in case (i) on the date of its actual
receipt by the party entitled thereto and in case (ii) on the date which is
three (3) days after its mailing.
(c) Amendment
and Waiver.
No
amendment or modification of this Agreement shall be valid or binding upon
the
Corporation unless made in writing and signed by an officer of the Corporation
duly authorized by the Board of Directors or upon the Employee unless made
in
writing and signed by Employee. The waiver by the Corporation of the breach
of
any provision of this Agreement by the Employee shall not operate or be
construed as a waiver of any subsequent breach by Employee. The waiver by the
Employee of the breach of any provision of this Agreement by the Corporation
shall not operate or be construed as a waiver of any subsequent breach by
Corporation.
(d) Entire
Agreement.
This
Agreement constitutes the entire agreement between the parties with respect
to
the Employee's duties and payment as an Employee to the Corporation, and there
are no representations, warranties, agreements or commitments between the
parties hereto with respect to Employee’s Employment except as set forth
herein.
(e) Governing
Law.
This
Agreement shall be governed by and construed in accordance with the internal
laws (and not the law of conflicts) of the State in which the Employee is
employed at the time of Termination. The Parties acknowledge and agree that
any
dispute resolution regarding the Employee’s employment shall be adjudicated in
any Federal court located in the State in which the Employee is employed at
the
time of Termination, unless otherwise mutually agreed by the
parties.
(f) Severability.
If any
provision of this Agreement shall, for any reason, be held unenforceable, such
provision shall be severed from this Agreement unless, as a result of such
severance, the Agreement fails to reflect the basic intent of the parties.
If
the Agreement continues to reflect the basic intent of the parties, then the
invalidity of such specific provision shall not affect the enforceability of
any
other provision herein, and the remaining provisions shall remain in full force
and effect.
(g) Assignment.
The
Employee may not under any circumstances delegate any of Employee’s rights and
obligations hereunder without first obtaining the prior written consent of
the
Corporation. This Agreement and all of the Corporation's rights and obligations
hereunder may be assigned or transferred by it, in whole or in part, to be
binding upon and inure to the benefit of any subsidiary or successor of the
Corporation.
(h) Costs
of Enforcement.
In the
event of any suit or proceeding seeking to enforce the terms, covenants, or
conditions of this Agreement, the prevailing party shall, in addition to all
other remedies and relief that may be available under this Agreement or
applicable law, recover its or its reasonable attorneys' fees and costs as
shall
be determined and awarded by the court.
IN
WITNESS WHEREOF, this Agreement is entered into as of the day and year first
above written.
EMPLOYEE:
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CORPORATION:
CoroWare Technologies,
Inc.
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By:
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Its:
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Approved
by Innova Holdings, Inc.
By:
_______________________________________