EXHIBIT 10.48
AMENDMENT NO. 1
TO
EMPLOYMENT AGREEMENT
THIS AMENDMENT NO. 1 ("Amendment") to Employment Agreement dated June
1, 2000, is made and entered into on this 23rd day of October, 2000, by and
between Karts International Incorporation, a Nevada corporation (the
"Employer"), and Xxxxxxx "Xxxxx" Xxxxxxx (the "Employee").
WHEREAS, on June 1, 2000, the Employer and Employee entered into an
Employment Agreement (the "June Employment Agreement");
WHEREAS, pursuant to the Employment Agreement between the Employer and
Employee effective as of February 1, 1999 (the "Old Employment Agreement")
Employee was granted options to purchase 450,000 shares of the Employer's Common
Stock;
WHEREAS, options to purchase 100,000 shares of Common Stock were vested
in Employee pursuant to the Old Employment Agreement;
WHEREAS, the June Employment Agreement superceded the Old Employment
Agreement, except that the options to purchase 100,000 shares of Common Stock
granted to Employee survived the termination of the Old Employment Agreement;
WHEREAS, the Employee and Employer intended that the June Employment
Agreement would provide Employee options to purchase 350,000 shares of Employer
Common Stock in order that Employee would receive options to purchase an
aggregate of 450,000 shares of Employer Common Stock under the Old Employment
Agreement and June Employment Agreement; and
WHEREAS, the parties desire to increase the number of stock options to
be granted to Employee under the June Employment Agreement from options to
purchase 250,000 shares of Common Stock to options to purchase 350,000 shares of
Common Stock.
NOW, THEREFORE, in consideration of the herein recited undertakings,
the other covenants and agreements contained herein, the receipt and sufficiency
of which are hereby acknowledged and confessed, the parties hereto agree as
follows:
1. The parties hereby agree to amend Section 6(a)(ii) of the June
Employment Agreement by deleting in its entirety the provisions of Section
6(a)(ii) and in its place and stead inserting the following language:
6.(a)(ii) Stock Options. Employee shall receive options (the
"Options") to purchase an aggregate of 350,000 shares of Employer's
Common Stock at an exercise price equal to 100% of the closing bid
price of the Common Stock on the date this Agreement is approved by the
Company's Board of Directors (August 21, 2000), as quoted on the Nasdaq
SmallCap market or OTC Electronic Bulletin Board. The Options, whose
terms shall not be inconsistent with this Agreement, shall vest and be
exercisable as follows: (a) options to purchase 100,000 shares shall
vest and be exercisable on the date this Agreement is approved by the
Company's Board of Directors (August 21, 2000); (b) options to purchase
100,000 shares of Common Stock shall vest and be exercisable on the
second anniversary of the Effective Date of this Agreement; and (c)
options to purchase the remaining 150,000 shares of Common Stock shall
vest and be exercisable on the third anniversary of the Effective Date
of this Agreement. All unvested Options shall vest immediately in the
event this Agreement is terminated either as the result of the death or
disability of Employee as contained in subsection (a) of Section 7 of
this Agreement, "without cause" as provided for in subsection(c) of
Section 7 of this Agreement or due to a "change in ownership" as
provided for in subsection (e) of Section 7 of this Agreement. The
Options shall expire on the fifth anniversary of the Effective Date of
this Agreement.
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT - Page 1
WITNESS our signatures this 23rd day of October, 2000.
EMPLOYER:
KARTS INTERNATIONAL INCORPORATED
By:____________________________________________
Xxxxxxxx Xxxxx benRichard barAbba, Secretary
EMPLOYEE:
______________________________________________
XXXXXXX "Xxxxx" Xxxxxxx
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT - Page 2