EMPLOYMENT AGREEMENT BETWEEN Navtech Systems Support Inc. (the Company) - and - David Strucke (the Employee)
NAVTECH,
INC.
EXHIBIT
10(S)
BETWEEN
Navtech
Systems Support Inc. (the
Company)
- and
-
Xxxxx
Xxxxxxx (the
Employee)
WHEREAS the
Employee is currently employed by the Company as President
and Chief Executive Officer;
AND
WHEREAS both
parties wish to formalize the employment agreement with the other;
NOW
THEREFORE THIS AGREEMENT WITNESSETH that for
good and valuable consideration including the promises made between the parties
in this Agreement, the receipt and sufficiency of which is hereby acknowledged
by each of the parties, the parties hereby agree each with the other as
follows:
TERM
OF EMPLOYMENT
1. |
Indefinite
Term:
|
(a) |
The
term of this agreement shall commence on November 1,
2005. |
DUTIES
AND RESPONSIBILITIES
2. |
In
serving the Company as President and CEO, the Employee
agrees: |
(a) |
to
undertake such duties and obligations in relation to the Company’s
business and at such locations as the Board of Directors of the Company
may
require, |
(b) |
to
devote his whole working time and attention to his employment duties and
responsibilities associated with his
position, |
(c) |
to
perform such other duties and responsibilities as may be assigned by the
Board of
Directors, |
(d) |
to
provide regular activity reports to the Board of Directors as the Board of
Directors may
require, |
(e) |
and
acknowledges that he is an Officer and fiduciary to the
Company, |
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(f) |
to
serve as a Director and Officer of the Company and such subsidiaries of
the Company as the Board of Directors may require,
and |
(g) |
not
to serve on more than three (3) external Boards of Directors without the
prior approval of the Board of
Directors |
REMUNERATION
3. |
Base
Salary |
(a) |
The
Employee will receive an annual base salary, in Canadian dollars,
inclusive of overtime, holiday and vacation pay, and less all deductions
required by law. |
(b) |
The
Employee’s base salary is reviewed annually by the Board of Directors, and
any change in base salary must be approved by the Board of
Directors. |
Bonus
(c) |
The
Employee, in his capacity as President and CEO, shall have the opportunity
to earn a cash bonus if specific performance objectives are
achieved. |
(d) |
Annual
and quarterly performance objectives shall be established by the Human
Resources and Compensation Committee (the “Committee”) in discussion with
the Employee, and shall be subsequently approved by the Board of
Directors.
|
(e) |
The
fulfillment or non-fulfillment of the performance objectives and the
quantum of the bonus payable shall be at the discretion of, and determined
by, the Committee, and confirmed by the Board of
Directors. |
Current
Compensation
(f) |
The
Employee’s current base salary, bonus eligibility and performance
objectives are reviewed annually by the Committee and Board of Directors,
according to the fiscal year calendar, and are stated in the attached
Schedule
“A”. |
BENEFITS
4. |
(a) |
The
Employee will be provided with the benefits as set out in Schedule “B”,
attached hereto, as may be altered by the Company from time to time in its
sole discretion upon one (1) month notice.
|
(b) |
For
insured benefits, the Employer is only required to pay its portion of the
premiums and has no further
obligation. |
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STOCK
OPTIONS
5. |
Subject
to the approval of the Committee and the Board of Directors, the Employee
shall be eligible to receive Options under the Navtech, Inc. 1999 Stock
Option Plan, as may be amended from time to time, and any grant of Options
shall be governed by the 1999 Stock Option Plan and such terms as may be
determined by the Board of Directors as permitted by the
Plan. |
VACATION
6.
|
The
Employee shall be eligible for twenty (20) days paid vacation each fiscal
year. Vacation entitlement shall be administered according to the
Company’s vacation policy and practice, and may be altered from time to
time by the Company in its sole discretion. The Employee shall not take
more than two consecutive weeks of vacation without the prior approval of
the Chair of the Committee. |
EXPENSES
7.
|
Car
Allowance |
(a) |
If
the Employee uses his own vehicle in the performance of his job duties,
the Employee will be paid a car allowance of $0.38 per kilometer, as may
be altered by the Company from time to time in its sole
discretion. |
Business
Expenses
(b) |
The
Company agrees to reimburse the Employee for reasonable expenses (as
determined in the sole discretion of the Company) incurred in connection
with the carrying out of his duties. Such expenses must be documented in
accordance with the Company policy, which may be altered from time to time
by the Company in its sole discretion. |
CONFLICT
OF INTEREST
8.
|
The
Employee will ensure that his direct or indirect personal interests do
not, whether potentially or actually, conflict with the Company’s
interests. The Employee agrees to promptly report any potential or actual
conflicts of interest to the Chairman of the Board of Directors.
|
A conflict of interest includes, but is not limited to the following: |
(a) |
A
private or pecuniary interest in an organization with which the Company
does business or which competes with the business interests of the
Company. |
(b) |
A private
or pecuniary interest, direct or indirect, in any concern or activity of
the Company of which the Employee is aware of or ought reasonably to be
aware. |
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(c) |
Pecuniary interests include the pecuniary interest of the
Employee’s parents, spouse, partner, children and relatives, a private
corporation of which the Employee is a shareholder, director or officer,
and a partner or other
employer. |
COMPANY
POLICIES
9. |
(a) |
The
Employee agrees to comply with the employment policies, practices, rules,
regulations and instructions of the Company now in force or which
hereafter may be amended, revised or adopted in the sole discretion of the
Company from time to time. |
(b) |
The
Employee agrees to comply at all times with the prevailing laws,
including, but not limited to, the Ontario Human
Rights Code
and the Occupational
Health and Safety Act. |
(c) |
A
failure to comply with subsections 9(a) or 9(b) above constitutes both a
breach of this Agreement and cause for termination without notice or
compensation in lieu of notice. |
RESTRICTIVE
COVENANTS
10. |
(a) |
The
Employee acknowledges and agrees that the restrictions and obligations
imposed on the Employee in Schedule C hereto are reasonable and necessary
for the protection of the Company, and the Employee waives any and all
defences to the strict enforcement thereof. |
(b) |
The
Company and the Employee acknowledge and agree that the restrictions and
obligations contained in Schedule C hereto will continue to apply
notwithstanding the manner or reasons for the termination of the
Employee’s employment and regardless of whether the employment of the
Employee is terminated with or without notice or for cause or reasons
other than cause. |
RESIGNATION
11. |
|
The
Employee may terminate the Employee’s employment pursuant to this
Agreement by notifying the Chairman of the Board of Directors in writing
of the Employee’s intention to resign, with a minimum of six (6) weeks
notice. |
TERMINATION
12. |
This
Agreement may be terminated by the Company as a result of the following:
|
(a) |
on
the death of the Employee; |
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(b) |
any
act committed by the Employee, or a breach by the Employee of any terms of
his employment agreement, which would constitute grounds for his immediate
dismissal with cause; |
(c) |
upon
provision of working notice, or pay in lieu thereof to the Employee of any
amount equal to twelve (12) months base salary, less statutory deductions,
as at November 1, 2005. For every year of service thereafter, the Employee
will be entitled to an additional one (1) month base salary, less
statutory deductions, to a maximum entitlement of eighteen (18) months,
which payment shall be inclusive of all termination pay and severance pay
entitlements under the Employment
Standards Act,
if applicable. The Employee agrees that such payment fully satisfies any
and all claims, causes of action, complaints that the Employee might have
against the Company, its subsidiaries, affiliates and each of its
respective officers, directors, employees, servants, agents and assigns,
jointly and severally, respecting termination notice, pay in lieu thereof,
severance pay or damages for wrongful
dismissal. |
The
following clauses govern compensation upon termination of the
Employee:
(d) |
vacation
pay and wages owing at the date of termination and the payment referred to
in subsection 12(a), 12(b), or 12(c) above will be paid in accordance with
the Employment
Standards Act. |
(e) |
a
pro-rata share of any unpaid car allowance for the period in which
termination occurs will be paid to the Employee when the final settlement
is prepared. No car allowance will be payable for any period following the
last day the Employee was actively working for the
Company. |
(f) |
a
pro-rata share of the fiscal year end bonus monies will be paid to the
Employee, at the date of termination, calculated as a percentage of
potential bonus earnings, corresponding to the number of completed months
of employment within that fiscal year. Potential bonus monies will be
calculated at the date of termination based upon the Company’s financial
results to-date relative to budget (i.e., if the employee is terminated
six months into a fiscal year and the Company has met 95% of EBITDA budget
through the date of termination, then the employee would be paid one-half
of the bonus amount that would have been earned if he had remained with
the Company for the full year and the Company had achieved 95% of
budget.) |
(g) |
any
stock option entitlement will be governed solely by the 1999 Stock Option
Plan. |
(h) |
any
money owing by the Employee to the Company at the date of termination will
be deducted from any monies owing to the Employee by the Company and, in
this regard, the Employee specifically authorizes the Company to deduct
any monies owing by the Employee to the Company from the Employee’s
termination payment. The Employee agrees that this paragraph is a formula
from which a specific amount can be determined for the purposes of the
Employment
Standards Act. |
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(i) |
the
Company will continue to pay its share of contributions to any benefit
plan under which the Employee was covered at the time of termination of
his employment in accordance with the Employment
Standards Act. |
(j) |
the
Company will not reimburse the Employee for expenses as set out in
subsection 7(b) above unless the expenses are authorized, properly
documented and submitted within two weeks of the date of the termination.
No expenses will be payable for any period following the last day the
Employee was actively working for the
Company. |
COMPLETE
AGREEMENT AND SEVERABILITY
13. |
(a) |
This
Agreement, and the schedules hereto, constitute the complete agreement
between the parties, and it is agreed that there is no term, condition,
warranty, or representation, collateral or otherwise, that may govern or
affect the relationship between the parties, other than those contained in
this agreement. |
(b) |
This
Agreement takes effect in substitution for all previous Agreements and
arrangements whether written, oral or implied between the Company and the
Employee relating to the Employee’s employment, all of which agreements
and arrangements shall be deemed to have been terminated by mutual consent
as of and from the date upon which this Agreement is deemed to have
commenced. |
(c) |
This
Agreement may not be altered, modified or amended except by written
instrument signed by both of the parties hereto. If any covenant or
provision of this Agreement is determined to be void or unenforceable, in
whole or in part, it shall not be deemed to affect or impair the validity
of any other covenants or provisions of this Agreement which are hereby
declared to be separate and distinct
covenants. |
INDEPENDENT
LEGAL ADVICE
14. |
(a) |
The
Employee acknowledges that the Employee has been advised to seek
independent legal advise and that the Employee was given the opportunity
to seek and obtain such advice prior to the execution of this
Agreement. |
(b) |
The
Employee states that the Employee has read the entire Agreement and
understands its contents. The Employee further acknowledges that the
Employee relied upon his own sources of information in signing this
Agreement and did not rely on any assertions, promises or information from
the Company other than the terms of this
Agreement. |
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GOVERNING
LAW
15. |
This
Agreement shall be governed by and interpreted in accordance with the laws
of the Province of Ontario. |
INTERPRETATION
16. |
The
language used in this Agreement shall be deemed to be the language chosen
by the parties to express their mutual intent, and the Agreement shall be
interpreted without regard to any presumption or other rule requiring
interpretation of the Agreement more strongly against the party causing it
to be drafted. |
NOTICES
17. |
Any
notice required or permitted to be given under this Agreement shall be in
writing and shall be delivered personally or sent by prepaid registered
mail to the parties hereto at their respective addresses, or to such other
address as either party may from time to time designate in writing to the
other. Any notice mailed as aforesaid, shall be deemed to have been
received by the party to whom it was addressed on the third business day
following such mailing. |
For
the Company:
NAVTECH
SYSTEMS SUPPORT INC.
_______________________________ ______________________________
Xx.
Xxxxxx X. Xxxxxx Date
Chairman
of the Board
For
the Employee:
_______________________________ ______________________________
Xx. Xxxxx
Xxxxxxx Date
President
and Chief Executive Officer
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