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Exhibit 10.14
EMPLOYMENT AGREEMENT
This Agreement is effective the first day of August, 1996, by and between Young
America Corporation (hereinafter referred to as the "Company") and L. Xxxxxx
Xxxxx (hereinafter referred to as "Employee").
For good and valuable consideration the parties hereto agree as follows:
1. Subject to the control of the President and the Board of Directors of the
Company, Employee shall serve in the capacity of Chief Financial Officer,
the Company agrees that the duties assigned to Employee shall not be
inconsistent therewith and Employee shall have executive powers and
authority as shall be reasonably be required to enable Employee to
discharge the duties of the Chief Financial Officer in an efficient
manner.
2. The Company employs Employee and the Employee agrees to serve the Company
for a term of 24 months commencing the first day of August, 1996, with an
automatic twelve month extension of the Agreement term on each annual
anniversary of the Agreement. The automatic term renewal clause of the
Agreement to terminate on the first day of the month after which the
Employee reaches Employee's 63rd birthday. Either the Company or the
Employee may exercise an option to cancel the automatic renewal clause of
this Agreement at any time by giving the other party 30 day written
notice.
3. So long as the Agreement and any renewal thereof shall continue in effect,
Employee shall devote Employee's full business time and energies to the
business and affairs of the Company and use the Employee's best efforts,
skills and abilities to promote the Company's best interests.
4. For all services rendered by Employee under this Agreement and any renewal
thereof the Company shall:
A. Compensate the Employee with a base salary of $150,000 per year,
payable semi-monthly. Compensation to commence August 12, 1996. The
Company will upon satisfactory performance of Employee, grant to
Employee reasonable annual increases in base salary during the
Agreement and any renewal thereof.
B. Direct that the Employee participate in the Officer's Bonus Program.
Participation will be at a level commensurate with other Officer's
at a similar level of responsibility and authority and will be based
on Company and personal performance.
C. Advance the Employee a signing bonus of $12,000. Such signing bonus
to be paid January 1, 1997. The signing bonus is to be amortized as
an addition to Employee's compensation at a rate of $1,000 per month
of employment beginning January 1997.
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EMPLOYMENT AGREEMENT
by and between
Young America Corporation and L. Xxxxxx Xxxxx dated August 1, 1996 (Con't)
D. Will reimburse Employee for any and all reasonable expenses incurred
as a result of Company related activities, including but not limited
to: Entertainment and Travel, Continuing Professional Education,
Professional Associations, Telephone, Etc. The Company shall furnish
Employee a Personal Computer and Printer for use at Employee's home
with such capabilities and software that the Employee will be able
to do work at home and have access to Company systems from
Employee's home.
E. Provide Employee with medical, dental, life, disability, and other
such coverage's in accordance with the Company's practices for all
other exempt employees.
F. Carry Director's and Officer's Liability Insurance with the Employee
as a named insured.
5. Employee recognizes and acknowledges that in the position of Chief
Financial Officer that Employee will have access to certain valuable and
confidential information concerning the Company's business activities.
Employee further acknowledges that should Employee terminate employment
with the Company such termination could have serious short term effects on
the Company. Therefore, Employee agrees that for a period of twelve months
after any such termination, Employee will not work for any organization
that directly competes with the Company. This restriction will be
applicable only in the event that the Employee voluntarily terminates
employment or is terminated for cause.
6. The Company agrees that for the period August 1, 1996 through December 31,
1996, Employee will receive 10 working days paid vacation. Effective
January 1, 1997 through December 31, 1998, Employee shall receive a total
of 15 working days paid vacation per year. Effective January 1, 1999 and
thereafter, Employee will receive 20 working days of vacation per year.
The vacation time to be taken shall be at the Employee's sole discretion,
except that in determining when to take such vacation, Employee shall take
into consideration the best interests of the Company. Employee may elect
not to use the full amount of vacation time granted, in which case the
unused portion will be carried forward to the following year. Whatever
unused portion remains at the end of the carry forward year will be
forfeited. The Employee will be required to use 10 days vacation annually,
a minimum of 5 days must be consecutive.
7. This Agreement of any renewal thereof may be terminated prior to the end
of the term herein set forth if in the event that the Company shall be
dissolved in bankruptcy; Employee shall die or become totally disabled; or
Employee shall be terminated for cause as hereinafter provided:
A. In the event of Employee's death, the Company shall pay to
Employee's spouse or estate, if spouse does not survive Employee,
any accrued and unpaid salary, bonus, and vacation pay.
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EMPLOYMENT AGREEMENT
by and between
Young America Corporation and L. Xxxxxx Xxxxx dated August 1, 1996 (Con't)
B. The Board of Directors may determine that Employee has become
totally disabled for purposes of this Agreement in the event that
Employee shall fail because of illness or incapacity to render for
three consecutive months or shorter periods aggregating six months
or more in any consecutive twelve monthly periods, services of the
character contemplated by this Agreement, and thereupon this
Agreement and employment of Employee hereunder shall be deemed
terminated as of the end of the calendar month in which such
determination is made. In such event, Employee shall receive for the
Company any accrued and unpaid salary, bonus, and vacation pay.
C. The Board of Directors of the Company may dismiss the Employee for
cause on two week's written notice. At the time of such dismissal,
the Company will pay Employee any accrued and unpaid vacation.
Dismissal for cause will be deemed to include neglect by Employee of
duties hereunder or willful misconduct of Employee in connection
with the performance of duties or other such acts of conduct
sufficiently detrimental to the Company to warrant dismissal of
Employee for cause under the laws of the State of Minnesota.
8. This Agreement may be modified by mutual consent of the parties hereto. If
modified the modification shall be attached and incorporated by reference
and shall be binding on all parties as if the modification had been a part
of the original Agreement.
9. This Agreement shall extend and be binding upon the Company, its
successors and assigns and upon Employee, Employee's legal representative
and heirs.
10. Waiver or breach of any section or term of this Agreement shall not be
deemed to constitute a waiver of breach of any other section or term of
the Agreement.
11. This Agreement shall be construed in accordance with the laws of the State
of Minnesota.
The parties hereto have hereby signed and agree to the provisions as set forth
herein as of the date first above written.
Young America Corporation
/s/ Xxxxxxx X. Xxxx /s/ X. X. Xxxxx
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by: Xxxxx Xxxx, President L. Xxxxxx Xxxxx
