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Exhibit 10.98
AMENDMENT
TO
EMPLOYMENT AGREEMENT
This Amendment (the "Amendment"), dated January 1, 2007, amends the
Employment Agreement, executed on July 1, 2004 (the "Agreement"), by and between
CirTran Corporation, a Nevada corporation, (the "Company"), and Xxxxxx X.
Xxxxxxxx ("Executive"). The following amendment shall be effective as of January
1, 2007 (the "Effective Date").
For and in consideration of the mutual covenants contained herein and of
the mutual benefits to be derived hereunder, the parties agree as follows:
1. Change in Base Salary. The annual base salary of Executive
specified in Section 4(a) of the Agreement is hereby amended to be $210,000. The
second sentence of Section 4(a) is deleted and replaced with the following:
"The base salary shall be reviewed by the Board annually and shall be
increased by at least 5% each year, as determined by the Board."
2. Term. Notwithstanding Section 3 of the Agreement, the initial term
shall continue until December 31, 2011 unless sooner terminated by either party
in accordance with Section 7 of the Agreement.
3. Bonus. Section 4(b) is hereby deleted and replaced with the
following:
"(b) Executive shall be granted bonuses, in addition to such other
bonuses as the Board, in its discretion, may determine, of the following:
(i) A quarterly bonus equal to 2.5% of the Company's earnings
before interest, taxes, depreciation and amortization
("EBITDA") for the quarter.
(ii) An annual bonus payable as soon as practicable after
completion of the audit of the Company's annual financial
statements equal to 0.1% of the Company's gross sales for
the most recent fiscal prior year which exceed 120% of the
Company's gross sales for the fiscal year previous thereto.
(iii) 5% of all gross investments made into the Company that are
directly generated and arranged by Executive if the
following conditions are satisfied: (i) Executive's sole
involvement in the process of obtaining the investment is
the introduction of the Company to the potential investors
and the Executive does not participate in the
recommendation, structuring, negotiation, documentation or
selling of the investment, (ii) neither the Company nor the
investor are required to pay any commissions, finders fees
or similar compensation to any agent, broker, dealer,
underwriter or finder in connection with the investment,
and (iii) the Board in its sole discretion determines that
the investment qualifies for this bonus and that the bonus
may be paid with respect to the investment."
4. Options. Section 4(c) is hereby deleted and replaced with the
following:
"Executive shall be granted options to purchase 4,000,000 shares of the
Company's common stock each year and issued during the first week of each year,
with terms and an exercise price of the fair market value of the Company's
common stock on the date of grant, as determined in accordance with the
Company's Stock Option Plan by the Board or the Committee established pursuant
to the Company's Stock Option Plan. Executive may be granted additional options
to purchase shares of the Company's common stock as determined from time to time
by the Board or such Committee. All options shall be subject to such other terms
and conditions as may be determined by the Board or the Committee when such
options are granted."
4. Health Benefit. Section 5(c) of the Agreement is hereby deleted
and replaced with the following:
"100% of all medical insurance premiums, including but not limited to
dental and vision insurance, for Executive and his spouse and children up
to the age of 22."
5. Life Insurance. The life insurance specified in section 5(d) of
the Agreement shall be increased to $150,000.
6. Car Allowance. A car allowance of $750 per month to cover fuel and
repairs of an automobile.
7. Other changes. Except as expressly amended hereby, the Agreement
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first set forth above to be effective as of the Effective Date.
CIRTRAN CORPORATION
By: /s/ Xxxxx Xxxxxxxx
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Name: Xxxxx Xxxxxxxx
Title: President & CEO
EXECUTIVE:
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
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