EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (this “Agreement”) is made effective as of the 27th day of February 2013 (the “Effective Date”) by and between XXXXXXX XXXXXX, an individual (“Employee”) and DUBLI, INC. AND SUBSIDIARIES a Nevada corporation (collectively, “DubLi”).
RECITALS
A. Employee is engaged by DubLi, pursuant to an employment agreement dated October 1, 2009 (the "Original Agreement"). DubLi wishes to continue to employ Employee and Employee wishes to be employed continuously by the Company, in accordance with the amended and restated terms and conditions set forth hereafter.
NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of Employee and DubLi hereby agree as follows:
1. Employment. DubLi hereby employs Employee and hereby affirms the employment of Employee as the Chief Executive Officer of DubLi, and Employee hereby affirms, renews and accepts such employment, for the “Term” (as defined in Section 3 below), upon the terms and conditions set forth herein. This Agreement constitutes an amendment and restatement of the Original Agreement in its entirety, and as of the Effective Date hereof, the terms, conditions and other provisions of this Agreement shall supersede all terms, conditions and other provisions of the Original Agreement.
2. Position and Duties. During the Term of this Agreement, the Employee shall be employed and serve as the Chief Executive Officer of DubLi, and shall have such duties typically associated with such title and shall exercise such power and authority as may, from time to time, be delegated to him by the Board of Directors of DubLi. The Employee shall devote his full business time, attention and efforts to the performance of his duties under this Agreement, render such services to the best of his ability, and use his reasonable best efforts to promote the interests of DubLi. The Employee shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (i) conflicts with the interests of DubLi and its affiliated entities, (ii) interferes with the proper and efficient performance of his duties for DubLi, or (iii) interferes with the exercise of his judgment in DubLi’s best interest. Notwithstanding the foregoing or any other provision of this Agreement, it shall not be a breach or violation of this Agreement for the Employee to (x) serve on civic or charitable boards or committees, (y) deliver lectures, fulfill speaking engagements or teach at educational institutions on a part-time basis approved by the Board of Directors, or (z) manage personal investments, so long as such activities do not significantly interfere with or significantly detract from the performance of the Employee’s responsibilities to DubLi in accordance with this Agreement.
3. Term. The “Term” of this Agreement shall commence on the Effective Date and continue thereafter for a term of five (5) years (the “Initial Term”, as may be extended or earlier terminated pursuant to the terms and conditions of this Agreement. The Term of this Agreement shall automatically renew for successive one (1) year periods after the first five (5) years from the Effective Date unless, within sixty (60) days of the expiration of the then existing Term, DubLi or Employee provides written notice to the other party that it elects not to renew the Term. Upon delivery of such notice, this Agreement shall continue until expiration of the Term, whereupon this Agreement shall terminate.
4. Compensation.
4.1 Salary. DubLi shall pay to Employee a total minimum annual salary of Four Hundred Twenty Thousand Dollars ($420,000.00) (the “Minimum Salary”), payable in equal installments at the end of such regular payroll accounting periods as are established by the Corporation, or in such other installments upon which the parties hereto shall mutually agree. The Minimum Salary shall be paid to Employee by the Corporation, subject to the terms set out below. In addition, DubLi may pay additional salary from time to time, and award bonuses in cash, stock or stock options or other property and services, as DubLi may determine in its sole discretion or pursuant to separate
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agreements with Employee. The Employee is hereby granted the stock award set forth on the Stock Award Agreement attached hereto as Annex A.
4.2 Benefits. During the Term, Employee shall be entitled to participate in all medical and other employee benefit plans, including vacation, sick leave, retirement accounts, profit sharing, stock option plans, stock appreciation rights, and other employee benefits, provided by DubLi to employees similarly situated.
4.3 Expense Reimbursement. DubLi shall reimburse Employee for reasonable and necessary expenses incurred by him on behalf of DubLi in the performance of his duties hereunder during the Term, provided that such expenses are adequately documented in accordance with DubLi’s then customary policies.
5. Indemnification.
5.1 Third Party Actions. Subject to limitations imposed by law, DubLi shall indemnify and hold harmless the Employee to the fullest extent permitted by law from and against any and all claims, damages, expenses (including reasonable attorneys’ fees), judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and to which the Employee was or is a party or is threatened to be made a party by reason of the fact that the Employee is or was an officer, Employee or agent of DubLi, or by reason of anything done or not done by the Employee in any such capacity or capacities, provided that the Employee acted in good faith, in a manner that was not grossly negligent or constituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of DubLi, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. DubLi also shall pay any and all expenses (including reasonable attorney’s fees) incurred by the Employee as a result of the Employee being called as a witness in connection with any matter involving DubLi and/or any of its officers or directors.
5.2 Expense Reimbursement. DubLi shall advance to Employee any expenses (including reasonable attorneys’ fees), judgments, penalties, fines, settlements, and other liabilities incurred by the Employee in investigating, defending, settling or appealing any action, suit or proceeding described in this Section 5.2 in advance of the final disposition of such action, suit or proceeding and as set forth in the following sentence. DubLi shall promptly pay the amount of such expenses to the Employee on a monthly basis as such expenses are incurred by Employee, but in no event later than 10 days following the Employee’s delivery to DubLi of a written request for an advance pursuant to this Section 5.2, together with a reasonable accounting of such expenses.
5.3 Reimbursement of Expenses. The Employee hereby undertakes and agrees to repay to DubLi any advances made pursuant to this Section 24 if and to the extent that it shall ultimately be found that the Employee is not entitled to be indemnified by DubLi for such amounts.
5.4. Insurance. DubLi shall collectively purchase and maintain insurance on behalf of Employee insuring against any liability asserted against or incurred by Employee in any capacity or arising out of Employee's status as such (D&O insurance), whether or not DubLi has the power to indemnify Employee against that liability under the provisions of this Section 5 for the period of this agreement and for one (1) year after termination of employment.
5.5 Survival. The provisions of this Section 5 shall survive the termination of the Term of Employment or expiration of the term of this Agreement.
6. Confidential Information/ Inventions.
6.1 Confidentiality. Employee shall not, in any manner, for any reasons, either directly or indirectly, divulge or communicate to any person, firm or corporation, any confidential information concerning any matters not generally known in DubLi's industry or otherwise made public by DubLi which affects or relates to DubLi's business, finances, marketing and/ or operations, research, development, inventions, products, designs, plans, procedures, or other data (collectively, “Confidential Information”) except in the ordinary course of business or as
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required by applicable law. Without regard to whether any item of Confidential Information is deemed or considered confidential, material, or important, the parties hereto stipulate that as between them, to the extent such item is not generally known in the DubLi's industry, such item is important, material, and confidential and affects the successful conduct of DubLi’s business and good will, and that any breach of the terms of this Section 6.1 shall be a material and incurable breach of this Agreement.
6.2 Documents Owned by Company. Employee further agrees that all documents and materials furnished to Employee by DubLi and relating to DubLi’s business or prospective business are and shall remain the exclusive property of DubLi as the case may be. Employee shall deliver all such documents and materials to DubLi upon demand therefore and in any event upon expiration or earlier termination of this Agreement. Any payment of sums due and owing to Employee by DubLi upon such expiration or earlier termination shall be conditioned upon returning all such documents and materials, and Employee expressly authorizes DubLi to withhold any payments due and owing pending return of such documents and materials.
6.3 Inventions. All ideas, inventions, and other developments or improvements conceived or reduced to practice by Employee, alone or with others, during the term of this Agreement, whether or not during working hours, that are within the scope of the business of DubLi or that relate to or result from any of DubLi's work or projects or the services provided by Employee to DubLi pursuant to this Agreement, shall be the exclusive property of DubLi. Employee agrees to assist DubLi during the term, at DubLi’s expense, to obtain patents and copyrights on any such ideas, inventions, writings, and other developments, and agrees to execute all documents necessary to obtain such patents and copyrights in the name of XxxXx.
0. Covenant Not to Compete. During the Term of this Agreement, Employee shall not engage in any of the following competitive activities: (a) engaging directly or indirectly in any business or activity substantially similar to any business or activity engaged in by DubLi as of the date of this Agreement; (b) soliciting or taking away any employee, agent, representative, contractor, supplier, vendor, customer, franchisee, lender or investor of DubLi, or attempting to so solicit or take away; (c) interfering with any contractual or other relationship between DubLi and any employee, agent, representative, contractor, supplier, vendor, customer, franchisee, lender or investor; or (d) using, for the benefit of any person or entity other than DubLi, any Confidential Information of DubLi. The foregoing covenant prohibiting competitive activities shall survive the termination of this Agreement and shall extend, and shall remain enforceable against Employee, for the period of one (1) year following the date this Agreement is terminated. In addition, during the two-year period following such expiration or earlier termination, Employee shall not make or permit the making of any negative statement of any kind concerning XxxXx.
0. Survival of Covenant Not to Compete. Employee agrees that the provisions of Section 8 shall survive expiration or earlier termination of this Agreement for any reasons, whether voluntary or involuntary, with or without cause, and shall remain in full force and effect thereafter.
9. Injunctive Relief. Employee acknowledges and agrees that the covenants and obligations of Employee set forth in Sections 6 and 7 with respect to non-competition, non-solicitation, confidentiality and the DubLi's property relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will cause DubLi irreparable injury for which adequate remedies are not available at law. Therefore, Employee agrees that DubLi shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain Employee from committing any violation of the covenants and obligations referred to in this Section 10. These injunctive remedies are cumulative and in addition to any other rights and remedies DubLi may have at law or in equity.
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10. Termination
10.1 Termination by Employee. Employee may terminate this Agreement without cause at any time and for “good reason”. For purposes of this Agreement, the term “good reason” for termination by Employee shall mean (a) any material reduction in the amount or type of compensation paid to the Employee or material reduction in benefits inconsistent with benefit reductions taken by other members of Company’s senior management; or (b) the Board or Company requests the Employee to engage in actions that would constitute illegal or unethical acts; or (c) any material breach of any written agreement entered into between the Employee and the Company, including this Agreement, which is not remedied by Company within thirty (30) days after receipt of notice thereof given by the Employee. The Company will have thirty (30) days in which to cure the reason(s) provided by the Employee. At the end of the 30-day period, if the Company has not cured the Good Reason cause of the Employees termination, the Employees employment will terminate following a reasonable transition period specified by the Company not to exceed thirty (30) days. The written notice given hereunder by Employee to DubLi shall specify in reasonable detail the cause for termination. The Employee shall be entitled to voluntarily terminate his employment with the Company prior to the end of the Employment Term upon ninety (90) days prior written notice from the Employee to the Company.
10.2 Termination by DubLi. DubLi may terminate its employment of Employee under this Agreement without cause at any time and for any reason upon ninety (90) days’ notice to Employee. DubLi may terminate its employment of Employee under this Agreement for cause at any time by written notice to Employee. For purposes of this Agreement, the term “cause” for termination by DubLi shall be the Employee’s (a) commission of a felony or other crime involving moral turpitude, or the commission of any other act or omission involving dishonesty or fraud with respect to DubLi or any of its respective customers or suppliers; (b) breach of fiduciary duty, willful misconduct or gross negligence with respect to DubLi; (c) substantial and repeated failure to perform duties as reasonably directed in writing by the Board of Directors; provided, however, that if any such breach is subject to cure, Employee shall be entitled to written notice of and an opportunity to cure such breach to the Board of Directors’ reasonable satisfaction within 30 calendar days of notice of such breach; (d) material breach of this Agreement; provided, however, that if any such breach is subject to cure, Employee shall be entitled to written notice of and an opportunity to cure such breach to the Board of Directors’ reasonable satisfaction within 30 calendar days of notice of such breach; (e) any action taken against Employee by a regulatory body or self-regulatory organization that materially impairs the Employee from performing his duty for a period of more than 180 days; or (f) alcoholism or drug addiction which materially impairs the Employee’s ability to perform his duties.
An act or failure to act shall not be “willful” if (A) done by the Employee in good faith and (B) the Employee reasonably believed that such action or inaction was in the best interests of DubLi. The written notice given hereunder by DubLi to Employee shall specify in reasonable detail the cause for termination. In the case of a termination for the cause described in (a) above, such termination shall be effective upon receipt of the written notice.
10.3 Severance. Upon a termination of this Agreement without “good reason” by Employee or with cause by DubLi, DubLi shall immediately pay to Employee all accrued and unpaid compensation as of the date of such termination, and Employee shall not be entitled to a “Severance Payment.” Upon a termination of this Agreement with “good reason” by Employee or without cause by DubLi, DubLi shall immediately pay to Employee all accrued and unpaid compensation as of the date of such termination plus the Severance Payment. The accrued compensation due and payable at termination shall bear interest at the lesser of six percent (6%) per annum or the maximum rate permitted by law until such amounts are paid in full. If this Agreement is terminated with “good reason” by Employee or for any reason by DubLi the “Severance Payment” shall equal the total amount of salary payable to Employee under Section 4.1 of this Agreement from the date of such termination until three (3) months after termination payable in equal installments at the end of such regular payroll accounting periods as are established by DubLi, or in such other installments upon which the parties hereto shall mutually agree. After one year of employment, the “Severance Payment” shall increase to the total amount of salary payable to Employee under Section 4.1 of this Agreement from the date of such termination until six (6) months after termination. If this Agreement is terminated for any reason by Employee or DubLi, all vested stock options then held by the Employee will remain exercisable for a period of ninety (90) days from the date of such termination, but in no event later than the expiration date of the option.
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11. Termination Upon Death. If Employee dies during the term of this Agreement, this Agreement shall terminate, except that Employee’s legal representatives shall be entitled to receive any earned but unpaid compensation due hereunder. All vested stock options then held by the Employee will remain exercisable for a period of ninety (90) days from the date of the Employee’s death, but in no event later than the expiration date of the option.
12. Termination Upon Disability. If, during the term of this Agreement, Employee suffers and continues to suffer from a “Disability” (as defined below), then DubLi may terminate this Agreement by delivering to Employee sixty (60) calendar days prior written notice of termination based on such Disability, setting forth with specificity the nature of such Disability and the determination of Disability by DubLi. For the purposes of this Agreement, “Disability” means Employee’s inability, with reasonable accommodation, to substantially perform Employee’s duties, services and obligations under this Agreement due to physical or mental illness or other disability for a continuous, uninterrupted period of ninety (90) calendar days. All vested stock options held by the Employee will remain exercisable for a period of ninety (90) days from the date of termination due to Disability, but in no event later than the expiration date of the option.
13. Personnel Policies, Conditions, And Benefits. Except as otherwise provided herein, Employee’s employment shall be subject to the personnel policies and benefit plans which apply generally to DubLi's employees as the same may be interpreted, adopted, revised or deleted from time to time, during the term of this Agreement, by DubLi in its sole discretion. During the term hereof, Employee shall receive the following:
13.1 Vacation. Employee shall be entitled to vacation during each year of the term at the rate of four (6) weeks per year; provided that any unused vacation shall accrue until March 30 of the following calendar year.
14. Beneficiaries of Agreement. This Agreement shall inure to the benefit of DubLi and any affiliates, successors, assigns, parent corporations, subsidiaries, and/or purchasers of DubLi as they now or shall exist while this Agreement is in effect.
15. No Waiver. No failure by either party to declare a default based on any breach by the other party of any obligation under this Agreement, or failure of such party to act quickly with regard thereto, shall be considered to be a waiver of any such obligation, or of any future breach.
16. Modification. No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the parties to be charged therewith.
17. Choice Of Law/Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without regard to any conflict-of-laws principles. DubLi and Employee hereby consent to personal jurisdiction before all courts in the County of Palm Beach, State of Florida, and hereby acknowledge and agree that Orange County, Florida is and shall be the most proper forum to bring a complaint before a court of law.
18. Entire Agreement. This Agreement embodies the whole agreement between the parties hereto and there are no inducements, promises, terms, conditions, or obligations made or entered into by DubLi or Employee other than contained herein.
19. Severability. All agreements and covenants contained herein are severable, and in the event any of them, with the exception of those contained in Sections 1 and 4 hereof, shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein.
20. Headings. The headings contained herein are for the convenience of reference and are not to be used in interpreting this Agreement.
IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date first above written.
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EMPLOYEE: | ||
By: | By: | |
Xxxxxxx Xxxxxx, General Counsel | Xxxxxxx Xxxxxx | |
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