Exhibit 10.2
[American Inflatables, Inc. letterhead]
Employment
Agreement
1. Employment
Employer hereby agrees, and employee hereby accepts the employment upon the
terms and conditions herein set forth.
2. Terms
Subject to the provisions of termination as hereinafter provided, the term of
this Agreement shall begin on December 20, 1998 and terminate on January
20,2005, provided, however that this Agreement shall automatically be renewed
for successive one year (1) year terms thereafter, unless either party gives the
other notice to termination this agreement at the expiration of any term, at
least fifteen (15) days prior to the expiration of said term.
3. Compensation
Employer shall pay to Employee compensation, during the years of this Agreement,
at an annual rate of$150,000. As a draw against of the commission to be earned
by Employee under this Agreement any additional commission beyond $1.5 million
in sales shall be paid above the base salary at a rate of 5% of total gross
sales. Any bonus structure may be negotiated through out the duration of this
Contract, Employer shall pay to Employee the annual compensation set forth above
in (52) fifty-two weekly (or, at the option of the employer, in twenty-six (26)
bi- weekly) installments.
4. Extent of service.
Employee shall devote his full time and energy to faithfully perform his duties
under this Agreement.
5. Death during employment.
If Employee shall die during the term of his employment, Employer shall pay to
Employee's estate the compensation which would otherwise be payable to Employee
up to the end of the month in the month in which the death occurs. Said
compensation shall include any and all holiday and vacation pay plus any and all
benefit accrued.
7. Termination of Employment.
A. Termination for cause. Employer may terminate Employee's employment hereunder
upon ten (10) days prior written notice if due to Employee's:
(1) Insubordination
(2) Disloyalty
(3) Misconduct; or
(4) Other similar cause, including failure to perform duties in accordance with
the instruction of employers of the Pres/CEO thereof. If Employee's employment
is terminated pursuant to this paragraph, Employer shall pay to Employee the
compensation payable to employee for the month in which such termination occurs,
prorated to the day of termination including payment of the sales commission,
accrued vacation and holiday and other benefits decried here.
8. Governing Law
This Agreement shall be construed under and governed by the laws of the State of
California.
9. Counterparts
This Agreement may be executed 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 .In witness whereof, the parties have executed this Agreement
the day and year first above written.
American Inflatables, Inc.
A California corporation
By /s/ Xxxxx Xxxxxxxxxx /s/ Xxxxx Xxxxxxxxxx
------------------------------ ----------------------------
It's President Xxxxx Xxxxxxxxxx
