EMPLOYMENT AGREEMENT
THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 1st day of
March, 2009, (the “Effective Date”) by and between Flint
Telecom Group. Inc, a Nevada corporation (the “Company”), and Xxxxx Xxxxxxxx,
whose residence address is _____________________________________________________
(the “Executive”).
The
Company wishes to employ the Executive and the Executive wishes to enter into
the employ of the Company as Chief Financial Officer and Board Member of
the Company.
This
Agreement shall become effective immediately upon the execution
hereof.
NOW,
THEREFORE, in consideration of the premises and mutual covenants set forth
herein, the parties hereby agree as follows:
1. Employment.
1.1 Employment and
Term. The Company shall employ the Executive and the Executive
shall continue to serve the Company, on the terms and conditions set forth
herein, for the period (the “Term”) from the Effective Date and expiring on the
second anniversary of the Effective Date, unless sooner terminated as
hereinafter set forth. The Agreement will automatically renew for subsequent six
month period(s), unless terminated at least 60 days prior to the expiration of
the applicable six month period.
1.2 Duties of
Executive. The Executive shall serve as Chief Financial
Officer of the Company and shall perform the duties of an executive commensurate
with such position, shall diligently perform all services as may be assigned to
him by the Company’s Board of Directors. The Executive shall devote
his working time and attention to the business and affairs of the Company,
directing the operations and business
development functions of the company by performing the following duties
personally or through subordinate supervisors: establishing,
recommending or making decisions on all aspects of
the business. The Executive
shall report to the Company’s President. The Company agrees that Executive is
not required to relocate from Atlanta, Georgia. The Company further agrees that
Executive may have other non-competitive business interests and may continue as
a Partner of Redquartz Atlanta, LLC.
1.3 The
Company. As used herein the term the “Company” shall be deemed
to include any and all present and future subsidiaries, divisions and affiliates
of the Company.
2. Compensation.
2.1 Base
Salary. During the term, the Executive shall receive a base
salary of $15,000.00 per month paid bi-weekly. The Board of Directors may also pay cash, stock or
stock option bonuses based on performance if the Company has achieved the goals
set by the Board.
2.2 Equity. Upon
the execution of this Agreement, the Company will issue to the Executive three
and one half million (3,500,000) shares of restricted common stock of the
Company, vesting over a period of four years, such that ¼ of the shares shall
vest at the first annual anniversary of the Effective Date, and quarterly
thereafter so that 100% of the shares shall be fully vested at the Executive’s
four year anniversary with the Company. If the Executive
resigns
from the Company at any time prior to the Executive’s four year anniversary, the
Executive shall be entitled to all vested shares as of the date of resignation.
If the Executive’s Employment is discontinued after the initial term of this
agreement or if the Executive is terminated without cause, the Executive shall
be entitled to receive full vesting of all 3,500,000 shares.
2.3 Stock Option Grants.
Subject to the approval of the Company’s Board of Directors, the Executive shall
be entitled to receive a grant based on the
Executive’s performance during the applicable year. The amount of the stock
option grant in any year shall be
determined by reference to the profitability of the Company and such other
measures as the Board of Directors and the Executive may agree. The
terms and conditions relating to the stock option grant shall be negotiated in
good faith.
3. Expense Reimbursement and
Other Benefits.
3.1 Expense
Reimbursement. During the Term, upon the submission of
supporting documentation by the Executive, and in accordance with Company
policies for its executives, the Company shall reimburse the Executive for
all expenses actually paid or incurred by the Executive in the course of and
pursuant to the business of the Company, including expenses for travel, auto and
entertainment.
3.2 Other
Benefits. During the term, Company shall provide Executive
with major medical and dental insurance. The Company shall pay for 100% of the
costs to provide the Executive with “family” coverage for medical and dental
insurance.
3.3 Vacation. Executive
shall be entitled to four weeks of paid vacation during each calendar year,
taking into consideration the business needs of the Company.
3.4 D&O Insurance.
The Company agrees to provide Executive with D&O insurance in a suitable
amount agreeable to Executive and the Company will be responsible for
maintaining and continuing this coverage throughout the term of Executive’s
employment.
4. Termination for
Cause. Notwithstanding anything contained in this Agreement to
the contrary, the Company may terminate this Agreement for Cause. As
used in this Agreement “Cause” shall mean (i) an
act of fraud, embezzlement or theft of funds or property of the Company or any
of its clients/customers; (ii) any intentional wrongful disclosure of
proprietary information or trade secrets of the Company or its affiliates or any
intentional form of self-dealing detrimental to the Interests of the Company;
(iii) the habitual and debilitating use of alcohol or drugs; (iv) continued
failure to comply with the reasonable
written directives of the Board of
Directors; insubordination or abandonment of position (after written notice and
a reasonable opportunity to cure); or (v) failure to comply in any material
respect with the terms of this Agreement (after written notice and a reasonable
opportunity to cure). Upon any
termination pursuant to this Section (4) the Company shall pay to the Executive
any unpaid Base Salary at the rate then in effect accrued through the effective
date of termination specified in such notice. Except as provided
above, the Company shall have no further liability hereunder other than for
reimbursement for reasonable business expenses incurred prior to the date of
termination outlined in Sections 3.1.
4.1 Termination Without
Cause. The Company may terminate
this Agreement without cause at any time by giving Executive sixty (60) day
prior written notice of its desire to terminate. In the event the Company elects
to terminate the Agreement pursuant to this Section 4.1, the Company shall
have no further liability hereunder other than for the payment to Executive on
the termination date of any unpaid Base Salary through the termination date,
reimbursement of reasonable business expenses incurred prior to the
termination date, a lump
sum of two hundredthousand dollars
($200,000) in cash. The
Executive shall be released from all restrictive covenants within Section 7 of
this Agreement related to competition if terminated without cause, but the
Executive shall not disclose any Company “Confidential Information” (as defined
within Section 7), to any third party.
5. Resignation by
Executive. The Executive upon delivery of notice may terminate
this Agreement therefore upon not less than
60 days prior notice of such
termination. Upon receipt of such notice, the Company may, in its
sole discretion, release the Executive of his duties and his employment
hereunder prior to the expiration of the 60 day notice
period. Notwithstanding anything contained in this Agreement to the
contrary, in the event of a termination by the Executive pursuant to this
Section 5, the Company shall have no further liability hereunder other than for
reimbursement for reasonable business expenses incurred prior to the date of
termination outlined in Sections 3.1.
5.1 Disability. Notwithstanding
anything contained in this Agreement to the contrary, the Company, by 30 days
written notice to the Executive shall at all times have the right to terminate
this Agreement, and the Executive’s employment hereunder, if the Executive
shall, as the result of mental or physical incapacity, illness or disability,
fail to perform his duties and responsibilities provided for herein for a period
of more than 60 days in any 12 month period. Upon the termination
pursuant to this Section, the Company shall continue (i) to pay to the Executive
Base Salary at the rates then in effect for a period of 6 months after the
effective date of termination (the “Severance Period”), (ii) employee benefit
programs as to the Executive for the Severance Period and (iii) the Company
shall be responsible for making payments on behalf of the Executive and his
family to maintain coverage of health and other benefits under COBRA, for the
maximum period allowed. Except as provided above, the Company shall
have no further liability hereunder other than for reimbursement for reasonable
business expenses, incurred prior to the date of termination, subject, however
to the provisions of Section 3.1.
5.2 Changes in
Control. For the purposes of this Agreement, a “Change of
Control” shall be deemed to have taken place if : (i) any person, including a
“group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934,
as amended, becomes the owner of beneficial owner of Company securities, after
the date of this Agreement, having 50% or more of the combined voting power of
the then outstanding securities of the Company that may be cast for the election
of directors of the Company or (ii) the persons who were directors of the
Company before such transactions shall cease to constitute a majority of the
Board of Directors of the Company.
(a) The
Company and Executive hereby agree that, if Executive is affiliated with the
Company on the date on which a Change of Control occurs, (the “Change of Control
Date”), and this Agreement is in full force and effect, the Company (or, if
Executive is affiliated with a subsidiary, the subsidiary) will continue to
retain Executive and Executive will remain affiliated with the Company (or
subsidiary), subject to the terms and conditions of this
Agreement, for the
period
commencing on the Change of Control Date and ending on the expiration date of
this Agreement (which date shall then become the “Change of Control Termination
Date”) to exercise such authority and perform such executive duties as are
commensurate with the authority being exercised and duties being performed by
the Executive immediately prior to the Change of Control Date. If
after the Change of Control, Executive is requested, and, in his sole and
absolute discretion, consents to change his principal business location, the
Company will reimburse the Executive for his reasonable relocation expenses,
including, without limitation, moving expenses, temporary living and travel
expenses for a reasonable time while arranging to move his residence to the
changed location, closing costs, if any, associated with the sale of his
existing residence and the purchase of a replacement residence at the changed
location, plus an additional amount representing a gross-up of any state or
federal taxes payable by Executive as a result of any such
reimbursement. If the Executive shall not consent to change his
business location, the Executive may continue to provide the services required
of him hereunder from his then residence and/or business address until the
Change of Control Termination Date, at which time this Agreement shall
terminate, unless sooner terminated or extended as set forth
herein.
(b) During
the remaining term hereof after the Change of Control Date, the Company (or
subsidiary) will (i) continue to pay Executive a salary and benefits at not less
than the level applicable to Executive on the Change of Control Date, (ii) pay
Executive bonuses as set forth herein, and (iii) continue employee benefit
programs as to Executive at levels in effect on the Change of Control
Date.
(c) The
Company hereby agrees that, if Change of Control
occurs prior to the termination of this Agreement, any Shares owned by the Executive shall become
registered.
6. Death. In
the event of the death of the Executive during the Term of his employment
hereunder, the Company shall pay to the personal representative of the estate of
the deceased Executive any unpaid Base Salary accrued through the date of his
death. Except as provided above, the Company shall have no further
liability hereunder other than for reimbursement for reasonable business
expenses incurred prior to the date of the Executive’s death, subject, however
to the provisions of Section 3.1.
7. Restrictive
Covenants.
7.1 Nondisclosure. During
the Term and following termination of the Executive’s employment with the
Company, Executive shall not divulge, communicate, use to the detriment of the
Company or for the benefit of any other person or persons, or misuse in any way,
any Confidential Information (as hereinafter defined) pertaining to the business
of the Company. Any Confidential Information or data now or hereafter
acquired by the Executive with respect to the business of the Company (which
shall include, but not be limited to, information concerning the Company’s
financial condition, prospects, technology, customers, suppliers, methods of
doing business and promotion of the Company’s products and services) deemed a
valuable, special and unique asset of the Company that is received by the
Executive in confidence and as a fiduciary. For purposes of this
Agreement “Confidential Information” means information disclosed to the
Executive or known by the Executive as a consequence of or through his
employment by the Company (including information conceived, originated,
discovered or developed by the Executive) prior to or after the date hereof and
not generally known or in the public domain, about the Company or its
business. Notwithstanding the foregoing, nothing
herein
shall be deemed to restrict the Executive from disclosing Confidential
Information to the extent required by law.
7.2 Books and
Records. All books, records, accounts and similar repositories
of Confidential Information of the Company, whether prepared by the Executive or
otherwise coming into the Executive’s possession, shall be the exclusive
property of the Company and shall be returned immediately to the Company on
termination of this Agreement.
7.3 Certain
Activities. The Executive shall not, while employed by the
Company and for a period of 12 months following the date of termination,
directly or indirectly, hire, offer to hire, entice away or in any other manner
persuade or attempt to persuade any officer, employee, agent, customer, lessor,
lessee, licensor, licensee or supplier of Employer or any of its subsidiaries to
discontinue or alter his or its relationship with Employer or any of its
subsidiaries.
7.4 Non-Competition. The
Executive shall not in any manner, directly or indirectly, including through
entities controlled by such Executive, while employed by the Company and for a
period of two (2) years following the Executive’s resignation or fulfillment of
the initial term of this agreement (i) engage or participate in a business, or
otherwise perform services for third parties which are competitive with those
performed by the Company, or (ii) own or operate any business which engages or
participates in the same or similar business or businesses conducted by the
Company which performs competitive services. Executive shall be
deemed to be engaged in the Business or performing competitive services if the
Executive engages in such business or performs such services directly or
indirectly, whether for the Executive’s own account or for that of another
person, firm or corporation, or whether as a stockholder, principal, partner,
member, agent, investor, proprietor, director, officer, employee or consultant,
except as an employee, director or consultant of the Company; provided, however, that the
Executive may hold an investment of no more than 5% of the equity securities of
any publicly traded entity without violating this Agreement. It is understood
and agreed that the business of China Voice Holding Corp is excluded from this
Non-Competition clause.
7.5 Property Rights; Assignment
of Inventions. With respect to information, inventions and
discoveries or any interest in any copyright and/or other property right
developed, made or conceived of by Executive, either alone or with others, at
any time during his employment by Employer and whether or not within working
hours, arising out of such employment or pertinent to any field of business or
research in which, during such employment, Employer is engaged or (if such is
known to or ascertainable by Executive) is considering engaging, Executive
hereby agrees:
(a) that
all such information, inventions and discoveries or any interest in any
copyright and/or other property right, whether or not patented or patentable,
shall be and remain the exclusive property of the Employer;
(b) to
disclose promptly to an authorized representative of Employer all such
information, inventions and discoveries or any copyright and/or other property
right and all information in Executive’s possession as to possible applications
and uses thereof;
(c) not
to file any patent application relating to any such invention or discovery
except with the prior written consent of an authorized officer of Employer
(other than Executive);
(d) that
Executive hereby waives and releases any and all rights Executive may have in
and to such information, inventions and discoveries, and hereby assigns to
Executive and/or its nominees all of Executive’s right, title and interest in
them, and all Executive’s right, title and interest in any patent, patent
application, copyright or other property right based
thereon. Executive hereby irrevocably designates and appoints
Employer and each of its duly authorized officers and agents as his agent and
attorney-in-fact to act for him and on his behalf and in his stead to execute
and file any document and to do all other lawfully permitted acts to further the
prosecution, issuance and enforcement of any such patent, patent application,
copyright or other property right with the same force and effect as if executed
and delivered by Executive; and
(e) at
the request of Employer, and without expense to Executive, to execute such
documents and perform such other acts as Employer deems necessary or
appropriate, for Employer to obtain patents on such inventions in a jurisdiction
or jurisdictions designated by Employer, and to assign to Employer or its
designee such inventions and any and all patent applications and patents
relating thereto.
7.6 Injunctive
Relief. The parties hereby acknowledge and agree that (a)
Employer will be irreparably injured in the event of a breach by Executive under
this Section 7; (b) monetary damages will not be an adequate remedy for any
such breach; (c) Employer will be entitled to injunctive relief, in addition to
any other remedy which it may have, in the event of any such breach; and (d) the
existence of any claims that Executive may have against Employer, whether under
this Agreement or otherwise, will not be a defense to the enforcement by
Employer of any of its rights under this Section 7.
7.7 Non-Exclusivity and
Survival. The covenants of the Executive contained in this
Section 7 are in addition to, and not in lieu of, any obligations that
Executive may have with respect to the subject matter hereof, whether by
contractor by law, and such covenants and their enforceability shall survive any
termination of the Employment Term by either party and any investigation made
with respect to the breach thereof by Employer at any time.
8. Withholding. Anything
to the contrary notwithstanding, all payments required to be made by the Company
hereunder to the Executive or the Executive’s estate or beneficiaries shall be
subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Company may reasonably determine it should withhold
pursuant to any applicable law or regulation
9. Arbitration. Any
controversy or claim arising out of or relating to this Agreement, or the breach
thereof, shall be settled by arbitration in accordance herewith, and judgment
upon the award rendered by the arbitrators may be entered in any Court having
jurisdiction thereof. Venue of the arbitration shall be in Palm Beach
County, Florida. Any controversy or claim shall be submitted to three
arbitrators selected from the panels of the arbitrators of the American
Arbitration Association. The arbitrators, in addition to any award
made, shall have the discretion to award the prevailing party the costs of the
proceedings, together with reasonable attorneys’ fees, provided that absent such
award, each party shall bear the costs of its own counsel and
presentation
of evidence, and each party shall share equally the cost of such arbitration
proceeding. Any award made hereunder may be docketed in a court of
competent jurisdiction in Palm Beach County, Florida, and all parties hereby
consent to the personal jurisdiction of such court for purposes of the
enforcement of the arbitration award.
10. Binding
Effect. Except as herein otherwise provided, this Agreement
shall inure to the benefit of and shall be binding upon the parties hereto,
their personal representatives, successors, heirs and assigns. The
Executive may not assign his rights or benefits, or delegate any of his duties,
hereunder without the prior written consent of the Company.
11. Further
Assurances. At any time, and from time to time, each party
will take such action as may be reasonably requested by the other party to carry
out the intent and purposes of this Agreement.
12. Entire
Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter
hereof. It supersedes all prior negotiations, letters and
understandings relating to the subject matter hereof.
13. Amendment. This
Agreement may not be amended, supplemented or modified in whole or in part
except by an instrument in writing signed by the party or parties against whom
enforcement of any such amendment, supplement or modification is
sought.
14. Choice of
Law. This Agreement will be interpreted, construed and
enforced in accordance with the laws of the State of Florida, without giving
effect to the application of the principles pertaining to conflicts of
laws.
15. Effect of
Waiver. The failure of any party at any time or times to
require performance of any provision of this Agreement will in no manner affect
the right to enforce the same. The waiver by any party of any breach
of any provision of this Agreement will not be construed to be a waiver by any
such party of any succeeding breach of that provision or a waiver by such party
of any breach of any other provision.
16. Construction. The
parties hereto and their respective legal counsel participated in the
preparation of this Agreement; therefore, this Agreement shall be construed
neither against nor in favor of any of the parties hereto, but rather in
accordance with the fair meaning thereof.
17. Severability. The
invalidity, illegality or unenforceability of any provision or provisions of
this Agreement will not affect any other provision of this Agreement, which will
remain in full force and effect, nor will the invalidity, illegality or
unenforceability of a portion of any provision of this Agreement affect the
balance of such provision. In the event that any one or more of the
provisions contained in this Agreement or any portion thereof shall for any
reason be held to be invalid, illegal or unenforceable in any respect, this
Agreement shall be reformed, construed and enforced as if such invalid, illegal
or unenforceable provision had never been contained herein.
18. No Third-Party
Beneficiaries. No person shall be deemed to possess any
third-party beneficiary right pursuant to this Agreement. It is the
intent of the parties hereto that no direct benefit to any third party is
intended or implied by the execution of this Agreement.
19. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be
deemed an original.
20. Notice. Any
notice required or permitted to be delivered hereunder shall be in writing and
shall be deemed to have been delivered when hand delivered, sent by facsimile
with receipt confirmed or when deposited in the United States mail, postage
prepaid, registered or certified mail, return receipt requested, or by overnight
courier, addressed to the parties at the addresses first stated herein, or to
such other address as either party hereto shall from time to time designate to
the other party by notice in writing as provided herein.
IN
WITNESS WHEREOF, this Agreement has been duly signed by the parties hereto on
the day and year first above written.
Flint
Telecom Group, Inc.
By: /s/ Xxxxxxx
Xxxxxx
Xxxxxxx
Xxxxxx, CEO
/s/ Xxxxx
Xxxxxxxx
Xxxxx
Xxxxxxxx
