Exhibit 10.2
TELZUIT TECHNOLOGIES, LLC
orlando, florida, USA
EMPLOYMENT AGREEMENT
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THIS IS AN EMPLOYMENT AGREEMENT dated the 3rd day of January, 2005.
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effective the 3rd day ofJanuary, 2005 ("Effective Date"), by and between Telzuit
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Technologies. LLC ("Company"), a Florida corporation with its principal place of
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business in Orlando, Florida and Xxxxxx X. Xxxxxx ("Employee"), whose social
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security number is XXX-XX-XXXX.
WHEREAS, the Company wishes to assure itself of the services of Employee
for the period provided in this Agreement, and Employee is willing to serve in
the employ of the Company upon the terms and conditions hereinafter provided.
NOW, THEREFORE, in consideration of the mutual covenants and promises
herein contained, the parties hereto hereby agree as follows:
I. EMPLOYMENT. The Company hereby employs Employee, and Employee hereby
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accepts such employment by the Company, upon the terms and conditions
herein provided.
II. POSITION AND RESPONSIBILITIES. During the period of his/her employment
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hereunder, Employee agrees to serve as Chief Executive Officer and/or Chief
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Financial Officer and to be responsible for the performance of all duties
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associated with this position as defined in the Company Personnel Manual.
Furthermore, Employee agrees to devote his full time to the faithful
performance of his duties for the Company and to render service to the
Company to the best of his ability, experience and talent to the reasonable
satisfaction of the Company. Except as otherwise herein provided, Employee
shall not engage in any other business or occupation without the Company's
written consent; provided, however, nothing contained herein shall prohibit
Employee from making passive or personal investments for which the
expenditure of time is not required. Employee acknowledges that he shall
work at the Company Office and shall travel, as reasonably required by the
Company, to various offices of the Company as well as to offices of clients
and vendors of the Company in connection with his/her employment. The
Company may change or modify the position of Employee or his/her duties at
any time during the term hereof, however, such changes shall not result in
a change in Employee's compensation as provided for herein.
III. TERM OF EMPLOYMENT. This agreement shall commence on the Effective Date and
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shall continue for a period of twenty-four (24) full calendar months
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thereafter (the primary term), unless sooner terminated, as provided in
paragraphs VIII, IX, and X hereof. The primary term shall be automatically
extended for additional twelve (12) full calendar months (the extended
term) unless either party gives notice to the other party not less than
ninety (90) days prior to the expiration of the current term and any
extended term that the contract is not going to be extended. In the event
of such notice the contract shall expire upon the last day of said current
term.
IV. PROFESSIONAL DEVELOPMENT PLAN. The Employee shall seek continuing education
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and professional development opportunities consistent with required job
skills necessary to manage and lead the Company toward established goals.
In addition, the Employee is required by the State of Florida to maintain
at minimum 80 hours of continuing professional education bi-annually (for
CPA licensure) which the Company intends to reimburse under this section.
The Company will reimburse Employee up to a maximum of $5,000.00 annually
for the aforementioned education.
V. COMPENSATION. Except as otherwise provided herein, for all services
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rendered by Employee in any capacity during his employment under this
Agreement, including, without limitation, services as an employee,
executive, officer, director, or member of any committee of the Company,
related companies or subsidiaries of the Company, commencing the Effective
Date, the Company shall pay Employee a gross salary before taxes of
one-hundred fifty thousand ($150,000.00) per annum, with an annual increase
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to the base of the published Consumer Price Index plus 3%. Salary payments
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net of deductions for applicable taxes shall be payable in accordance with
the Company's normal pay practices which may be altered from time to time
by Company.
A. OVERTIME. It is expressly agreed that Employee's duties shall
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during the term hereof be administrative and executive in nature and
Employee and his/her position shall be exempt from the overtime
provisions of the Fair Labor Standards Act and all other state and
federal regulations
B. VACATION AND SICK LEAVE. Employee shall be entitled to three
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weeks vacation each year. Sick leave and personal days are governed by
the Company's Employee Manual. Vacation time is not cumulative from
year to year.
C. BENEFITS. The Company will provide $50,000 paid life insurance,
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fully paid health insurance for Employee and dependents, and other
benefits as described in the Employee Manual.
D. BONUSES. Employee shall be eligible for performance bonuses of up
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to 20% of base salary per annum. The bonus shall be based
proportionally on the percentage bonus earned by key reports Xxxxxxx
Xxxxx and Xxxxx Xxxxx. The Board of Directors may confer the entire
20% bonus or any portion thereof if merited irrespective of bonuses
earned by reports.
E. AUTOMOBILES. The Employee acknowledges that it is Company policy
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not to provide Company vehicles to employees. The Company will provide
a monthly allowance to compensate Employee for wear and tear on his
automobile when used on behalf of the Company amounting to $450.00.
This amount will increase $50.00 annually. Employee further
acknowledges that the allowance will be reported as income to the
Employee on his W2.
F. EXPENSES. The Company shall pay directly, the following expenses
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incurred by the Employee in and pertaining to the course of his
employment if first determined by the Company to be ordinary and
necessary expenses of the Company:
1. Business related - after prior approval by the Company,
Employee's license fees, membership dues in trade associations,
subscriptions to trade journals and such other items as the
Company may determine as being ordinary and necessary business
expenses of the Company.
2. Entertainment - From time to time Employee shall be expected
to entertain for the benefit of the Company and his/her own
professional acceptance and success in the Community. Such
entertainment shall be one of the requirements of the Employee's
employment hereunder and the expenses incurred by him in
connection therewith shall be borne by the Company in an amount
not to exceed those sums, per occasion, as defined in the Company
Personnel Manual. Any amounts in excess of the prescribed per
occasion amounts shall require prior approval by the CFO.
3. Meetings, Conventions and Seminars - Employee, as a
condition of employment hereunder, may be required by Company to
attend professional meetings, conventions or trade seminars. The
expenses incurred by Employee in connection therewith such as
travel, room, board and registration fees shall be borne by the
Company in an amount not to exceed the sums as defined in the
Company Personnel Manual. Any amounts in excess of the prescribed
amounts shall require prior approval by CFO.
4. Method of payment - company shall provide Employee the means
to pay for the above expenses in accordance with the policies
defined in the Company Personnel Manual.
VI. REIMBURSEMENT OF DISALLOWED COMPENSATION AND EXPENSES. In the event any
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compensation or reimbursement of expenses paid to Employee or expenses
for Employee shall upon audit or other examination of the income tax
returns of the Company, be determined not to be an allowed deduction from
the gross income of the Company, and such determination shall be accepted
by the Company or shall be rendered final by the appropriate state or
federal taxing authority or by a judgment of a court of competent
jurisdiction and no appeal shall be taken there from or the applicable
period for filing notice of appeal shall have expired, then, in such event,
Employee will repay to the Company the amount of disallowed compensation or
expenses or both within ninety (90) days of receipt of notice by the
Employee of such amount. The Company may not waive this duty of repayment.
In the event the Company has not been fully repaid by the Employee within
said ninety (90) day period, the Company shall have the right to withhold
the unpaid amount from future salary payments in one or more installments,
until the amount allowed to the Company has been recovered in full.
VII. STOCK BONUS: Employee will receive a stock bonus on the annual anniversary
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date of this agreement for a maximum term of two years. The bonus stock
shall be shares of non-voting stock in the Company. Employee shall receive
zero shares each year in recognition of his performance under the terms of
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this agreement. Bonus stock shall not be available on any prorated basis
but will only be paid for each full year of service under the terms of this
agreement. It is acknowledged by both parties that the term of bonus stock
payments may be shorter than the term of this agreement. In the event of a
sale of the Company the Employee shall receive any of the remaining years
of bonus stock prior to sale and shall be entitled to receive the prorated
net proceeds of the sale of the stock of the company to the same extent as
if he had received the bonus shares at the end of each of the bonus years,
in the event the Employee breaches the terms of this agreement, resigns or
is terminated the employee shall forfeit all rights to any un-issued bonus
stock.
VIII. ILLNESS OR INCAPACITY. If Employee becomes unable to devote his required
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time to the business of the Company because of illness or incapacity during
the term of this Agreement, then during such period of illness or
incapacity, his salary shall be 100% of his monthly Basic Salary for the
first six (6) months. Successive periods of disability, illness or
incapacity will be considered separate periods unless the later period of
disability, illness or incapacity is due to the same or a related cause and
commences less than two (2) months from the ending of the previous period
of disability. Any dispute regarding the existence, extent or continuance
of the disability, illness or incapacity shall be resolved by the
determination of a majority of three medical doctors who are not employees
of the Company, one of whom shall be selected by the Company, one of whom
shall be selected by the Employee and a third whom shall be selected by the
other two doctors. If the Employee shall not have resumed his duties within
the six (6) month period specified above, the Employee's employment under
this Agreement and the Company's financial obligations hereunder may be
terminated as of the end of said six (6) month period.
IX. DEATH AS TERMINATION OF EMPLOYMENT.
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A. Any sums due the Employee under this Agreement shall be paid to
the Employee's beneficiary at the next normal pay period after the
date of Employee's death.
B. Any sums due the Employee under the Company's Profit Sharing Plan
shall be paid to the Employee's beneficiary as provided by the terms
of the Plan.
C. After receiving the payments provided for in this Section, the
Employee's surviving spouse and/or his/her estate shall have no
further rights under this Agreement.
X. TERMINATION FOR CAUSE. The Company may terminate Employee's employment
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under this Agreement at any time, but only after a determination by the
Vice President of Human Resources that cause for termination exists. Cause
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shall include but shall not be strictly limited to:
A. Willful damaging of the Company's property, business, reputation or
goodwill;
B. Conviction of a felony;
C. Death, theft, dishonesty, fraud or embezzlement;
D. Inattention to or neglect of duties to be performed, which are
not the result of illness or accident;
E. The use of alcohol, illegal narcotics or other controlled
substances to the extent that it prevents the Employee from
efficiently performing services for the Company;
F. Willfully injuring of any other employee of the Company;
G. Willfully injuring any person in the course of performance of
services for the Company;
H. Disclosing to a competitor or other unauthorized persons
confidential or proprietary information or secrets of the Company;
I. Solicitation of business on behalf of a competitor or a potential
competitor;
J. Sexual harassment of any other employee of the Company or the
commission of any illegal act which otherwise creates an offensive
work environment for other employees of the Company;
K. Failure of Employee for any reason within five days after receipt
by Employee of written notice thereof from the Company, to correct,
cease or otherwise alter any insubordination, failure to comply with
instructions or other act or omission to act that in the opinion of
the Company does or may adversely affect its business or operations;
L. Failure to devote full time and effort to his/her duties hereunder;
M. Failure to perform assigned duties and/or responsibilities in a
manner satisfactory to the Company;
N. Company shall not be limited to termination as a remedy for any
improper or illegal act of Employee, but may also seek damages,
injunction or such other remedy as it may deem appropriate under the
circumstances.
XI. RETURN OF RECORDS. On termination of employment, Employee shall deliver a1l
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records, notes, data, memoranda, models, and equipment of any nature that
are in Employee's possession or under his/her control and that are the
property of the Company or relate to the Employment or to the business of
the Company.
XII. LIFE INSURANCE. Inasmuch as the services of employee are important to the
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success or failure of the Company, the Company may, by its sole discretion,
purchase disability insurance or insurance on the life of the Employee
during the term hereof in such amounts, as Company shall determine
appropriate. The Company shall own such insurance, the Company shall be the
sole beneficiary, and all premiums therefore shall be paid by the Company.
The Employee agrees to cooperate with the reasonable requirements of the
Company and/or its insurance carriers as necessary to obtain such
insurance, including submitting to any and all necessary medical
examinations.
XIII. NON COMPETE & NON DISCLOSURE. Upon signing of this agreement Employee
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agrees to be bound by the terms and conditions of the Company's NON-COMPETE
& NON-DISCLOSURE EMPLOYMENT AGREEMENT which agreement Employee agrees to
sign as a condition of his/her employment by the Company. The Compensation
clauses contained in that Agreement are hereby acknowledged to be a partial
reiteration of the Salary and other Compensation clauses contained in this
agreement and not to be construed as additional Compensation to be paid by
Company to Employee.
XIV. WAIVER. The waiver by either party hereto of any breach of any provision of
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this Agreement shall not operate or be construed as a waiver or any
subsequent breach by either party hereto.
XV. COSTS OF ENFORCEMENT. In the event either party initiates action to enforce
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his/her or its rights hereunder, the substantially prevailing party shall
recover from the non-prevailing party its reasonable expenses, court costs
and reasonable attorneys' fees, whether suit be brought or not. As used
herein, expenses, court costs and attorneys' fees include expenses, court
costs and attorneys' fees incurred in an appellate proceeding. All such
expenses shall bear; interest at the highest rate allowable under the laws
of the State of Florida from the date the prevailing party pays such
expenses until the date the non-prevailing party repays such expenses.
Expenses incurred in enforcing this paragraph shall be covered by this
paragraph. Further, the Court of proper jurisdiction in Orange County,
Florida shall be the proper forum and venue.
XVI. BINDING EFFECT AND ASSIGNMENT. This Agreement shall be binding upon and
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inure to the benefit of the Company, its successors and assigns and the
Employee and his/her heirs and legal representatives. This Agreement is
personal as to Employee and may not be assigned by Employee. The Company
without the prior consent of Employee may assign this Agreement.
XVII. GOVERNING LAW & SEVERABILITV. This Agreement shall be governed by and
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construed in accordance with the laws of the State of Florida. The
invalidity or unenforceability of a particular provision of this Agreement
shall not effect the other provisions hereto, and this Agreement shall be
construed in all respect as if such invalid or unenforceable provisions
were omitted.
XVIII. AMENDMENT AND COMPLETE AGREEMENT. This Agreement may be amended in whole
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or part at any time and from time to time but only in writing signed by
both parties. This Agreement contains the entire understanding of the
parties relating to the employment of the Employee by the Company. The
parties acknowledge and agree that neither of them has made any
representation with respect to such matters of this Agreement or any
representations except as are specifically set forth herein, and each party
acknowledges that he/she has relied on his/her own judgment in entering
into this agreement. The parties further acknowledge that statements or
representations that may have been made heretofore by either of them to the
other are void and of no force and effect to the extent that they are not
incorporated herein.
XIX. SPECIAL PROVISIONS. If Employee is terminated due to change of control of
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the organization, even if that control is not a majority control, Employee
will immediately receive the balance of cash payments and rights due him
under the contract.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals
the day & year written above.
BY: /s/ Xxxxxxx Xxxxx BY: /s/ Xxxxxx Xxxxxx
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Employer Employee
STATE OF Florida STATE OF Florida
COUNTY OF FL COUNTY OF ORANGE
PERSONALLY appeared before me, the PERSONALLY came and appeared
undersigned authority for the county and for the jurisdiction aforesaid, the
state aforesaid, the within named within named Xxxxxx Xxxxxx in the
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Xxxxxxx Xxxxx, who acknowledged to me above and foregoing instrument of
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that he is Employee of Telzuit writing, who acknowledged to me
Technologies, Inc, and who acknowledged that he/she signed and delivered
that he signed and delivered the above the above foregoing instrument of
and foregoing instrument on the date and writing on the day and in the year
year therein mentioned, for and on and for the purposes therein
behalf of said corporation after first mentioned. GIVEN under my hand and
having been duly authorized so to do. official seal of office on this 31
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GIVEN under my hand and official seal of day of March, 2005
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office on this the 31 day of March,
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2005.
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/s/ Xxxxxx Xxxxxxx /s/ Xxxxxx Xxxxxxx
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NOTARY PUBLIC - STATE OF FLORIDA NOTARY PUBLIC - STATE OF FLORIDA
MY COMMISSION EXPIRES Feb 22, 2008 MY COMMISSION EXPIRES Feb 22, 2008
COMMISSION # DD292669 COMMISSION # DD292669
BONDED BY NATIONAL NOTARY ASSN. BONDED BY NATIONAL NOTARY ASSN.
