Exhibit 10.1
HighLightNetworksInc.EmploymentAgreement
ThisEmploymentAgreement(hereinafterreferred toas"Agreement"),isenteredintoas ofthis15th of April,2013,byandbetween HighLight NetworksInc.,(hereinafter referred to as the "Company") and Danny Mendelson ("MENDELSON").
WITNESSETH:
WHEREAS,theCompanydesirestoemployMENDELSONandMENDELSONdesirestobe
employed bytheCompanyastheExecutive Vice President(EVP) and Chief Operating Officer (CEO) of EZRecycling, Inc. (EZ)uponthetermsandconditions setforthherein;and
WHEREAS,MENDELSONandCompanydesiretoreducethetermsofMENDELSON’s
employmentwiththeCompanytoawrittencontract;
NOWTHEREFORE,inconsiderationofthepremisesandmutualcovenants
containedhereinandintendingtobelegallyboundhereby,thepartiesheretoagreeasfollows:
1.Employment.
PursuanttothetermsofthisAgreement,theCompanyherebyemploysMENDELSONasthe EVP of Company and as CEO of EZRecycling, Inc.
MENDELSONshallreportdirectlytothe Chief Executive Officer of the Companyandshallperformsuch dutiesasarecustomarilyperformedbyapersonholdingthe position of EVP and CEO inbusinesses similartothose engaged in bythe Company and its subsidiaries andshall,inaddition, render suchother reasonable services asmaybeassigned tohim, fromtimetotime, bythe Company’s CEO or their designeewithin MENDELSON'sscope of experience,trainingand expertise.
MENDELSON herebyagreestobeemployedasEVPoftheCompany and CEO of EZforthetermhereofasset forth below. MENDELSON agrees that he shall at all times faithfully and to the best of his ability, perform all of the duties that may reasonably berequestedof himwithinhisscope ofexperience,training and expertisepursuant to the termsof thisAgreement.
TheCompanyrepresentsandwarrantstoMENDELSONthatthisAgreementhasbeendulyand validlyauthorizedandexecutedbyandonbehalf oftheCompany andthat itconstitutes thelawful, valid and binding obligationoftheCompany.
MENDELSONrepresentsandwarrantstotheCompanythatheisfreetoacceptemployment hereunderandthathehasnoprior orexistingobligations, commitments orrestraints of anykindthatwould inanyway hinder orinterferewithhis acceptance of, or thefull performance of, his employment hereunder . When executed, thisAgreement will constitute thelawful,validand binding obligation of MENDELSON.
DuringhisemploymentwiththeCompany,MENDELSONshalldevotenotlessthan90% ofhis workingtime,totheperformance ofhis responsibilities hereunder in a mannerwhich will faithfully and diligently further thebusiness and interest oftheCompany. Subject to and consistentwiththe provisions of Paragraphseven (7)below, MENDELSON,duringandwhile employed bytheCompany,may notprovide anyservicesto or receiveanycompensation from anycompetitor orpotential competitor of theCompany.
2. Term.
UnlessearlierterminatedinaccordancewithParagraphfive(5)below,thisAgreement shallcontinueforaninitialperiodofone (1)yearfromthedateonwhichbothparties executethisAgreement.
Thereafter,thisAgreementshallbeextendedautomaticallyfor successivetermsofone(1)yearunless(i)theCompanyorMENDELSON gives writtennotice of termination totheotherparty heretoat least Sixty(60) daysprior tothetermination ofthe initial termofemployment hereunder oranyrenewal termthereof, or (ii) unless earlier terminatedas hereinprovided.
CompanyshallpaytoMENDELONanannualsalaryoftwohundredthousanddollars(US
$200,000)contingentupontheconditionssetforthinthisParagraph.MENDELSON's salaryandotherbenefitsshallbereviewedannuallyby the Board ofDirectorsof the Companyand with MENDELSON.The salaryshall be paid in equal periodic installments in accordance with the Company's salarypractices. The salarypayment shall notin any waylimit or reduce any other obligationof the Companyhereunder, and no other compensation, benefitor paymenthereunder shallin any way limitor reducethe obligation of the Company to pay MENDELSON's salary hereunder. A portion of MENDELSON's salary is included as a portion of the Company's SG&A, but shall not be paid in full if capital or revenue is not available to the Company during the term of this Agreement. Such salary will begin once EBITDA has reached two million dollars ($2,000,000) based on a twelve month trailing average beginning April 1, 2013.
As additional compensation, Company agrees to deliver to MENDELSON one hundred fifty (150,000) thousand shares of Restricted Common Stock in HighLight Networks, Inc., par value $0.001 per share, (hereinafter “HNET shares”) in two certificates of seventy-five thousand (75,000) each as follows:
i. The first certificate will be fully vested upon issue.
ii. The second certificate will be designated to be vested one (1) full year after the execution date of this agreement.
iii. Should MENDELSON leave or be separated from the Company before that time, the second certificate will be cancelled and he will return the certificate to the Company for its records.
DuringthetermofMENDELSON'semploymenthereunder,MENDELSONshallreceive
reimbursementfromtheCompanyforallreasonableexpensesincurredbyMENDELSONin theperformanceofhisdutieshereunder,including,by wayofexampleand not limitation, travel andliving expenseswhileawayfrom homeon business atthe requestofor in theservice oftheCompany, provided that such expensesare incurred andaccounted forin accordance with thestandardpolicies and procedures established,from time to time, bytheCompany for reimbursement ofexpenses.
MENDELSONshallbeentitledtoreceiveaquarterlyperformancebonusequalto1%of netmargin,definedasrevenues after cost of goods sold and beforeSG&A,paidquarterly,As long asthenetresult isthattheCompanyachieves an EDITDA ofno less than 10% of revenues.
MENDELSONshallbeentitledtoparticipateinthesamemannerasotherofficersofthe Companyinsuch lifeinsurance, medical,dental, disability,pension,retirement plans andotherprograms as may beestablished by the Company, from timeto time, forthe benefit ofits officers.Except as provided elsewhere herein, nothingherein shall affect theCompany'srightto amend, modify orterminate anyretirement orother benefitplan at any time for anyreason.
MENDELSONshallbeentitledtovacation as mutually approved until such time as the Company adopts a formal vacation policy including all corporate officers.
4. WarrantiesandIndemnificationbytheCompany. TheCompanywarrantsandrepresentsto MENDELSONthat:
a) TheCompanyshallindemnifyandsaveMENDELSONharmlessfromanyandallclaims incurredormadeagainstMENDELSONarisingdirectlyorindirectlyfromanynegligent or wrongfulacts or omissionsbytheCompany,provided thatany such negligent or wrongful actsor omissions donotoccurasaresult ofMENDELSON'sownacts orfailureto acton behalfoftheCompany in hisrole as EVP or as the CEO of EZ.TheCompany shall use itsbest efforts to obtain insurance of the kind and amount reasonably necessary to provide adequate protection to MENDELSON.
b) TheCompany shallprovidetoMENDELSONanyassistanceoraccesstoinformationand facilitiesreasonablyrequiredbyMENDELSONtoperformhisobligationsunderthis Agreement.
| c) | TheCompanyshallprovideMENDELSONreasonableassistanceinhiscompliancewiththe legalrequirementsexistingfromtimetotimesoastoallowMENDELSONtoperform his dutiesastheCompany'sEVP and as CEO of EZ. |
| 5. | TerminationofEmployment. |
ThisAgreementandMENDELSON'semploymenthereundermaybeterminatedonlyunderthe followingcircumstancesduringthetermofthis Agreement:
| a) | Termination byMENDELSON. |
MENDELSONmayterminatehisemploymentwiththeCompanyforanyreasonbygivingthe
Companynotlessthan60dayspriornoticeofhisintenttoterminatehisemployment. Intheeventof thetermination of thisAgreement by MENDELSON,and atCompany's option, Company may immediately terminate MENDELSON’s employment andshall only payMENDELSON's salaryearnedandoweduptothedateofsuch termination andMENDELSON shallnot be entitledtothe benefits ofParagraph six(6) below.
MENDELSON'semploymenthereundershallterminateuponhisdeath.
Ifasaresultof MENDELSON'sincapacityduetophysicalormentalillness,MENDELSONshall havebeenunabletoperform hisduties hereunder fora period oftwo (2)consecutive months during the term hereof, the Company may terminate MENDELSON's employment hereunder.
CompanymayterminateMENDELSON'semploymentwiththeCompanyforcause. "Cause"forthepurposesofthisAgreement,shallincludetheCompany'sgood faith beliefthat MENDELSONhasengaged in anyoneormore of the following: willful misconduct, fraud, misappropriation , embezzlement, grossnegligence,incompetence , self-dealing, dishonesty, misrepresentation , materialviolation of any Companypolicy orany provisions of this Agreement (i.e.,confidentiality, ethics,harassment/ discrimination, orviolence, substance or alcoholabuse) unsatisfactory performance or incompetence. "Cause “also shall include MENDELSON's inability to perform theessential functions of his jobas described todate, for any reason, for a periodof timeset forth in Paragraphseven (7) above, and anyother circumstances which, under applicable law, would give theCompanythe right to terminate MENDELSON , withsuch termination being deemedtobefor cause.
6.CompensationUponTerminationof Employment.
a) IfMENDELSON's employmentisterminatedforcauseunderParagraph5(d)above,the CompanyshallpayMENDELSONhisfullsalarythrough the termination date, ,plusall expensereimbursements outstanding, if any, and theCompany shall have no further obligations whatsoever to MENDELSON under thisAgreement, except as may beexpressly providedelsewhere herein.
b) TheterminationofMENDELSON'semploymenteitherbyMENDELSONorbytheCompany, whetherwithorwithoutCause, shall not release MENDELSONfrom MENDELSON's obligations andrestrictions under Paragraph seven (7) of this Agreement.
c) Regardlessof thereasonfortheterminationofMENDELSON'semployment,whetherby MENDELSONortheCompany,whetherwithorwithout Cause,whether ornot due to MENDELSON's death, MENDELSON (or hisestate) will receivepayforanydays actually worked by MENDELSON plus expensesprior tothetermination ofhis employment. If such termination is without cause MENDELSON will also be entitled the pro-rata portion of any bonuses due through the termination date. Regardless of the reason for thetermination of MENDELSON 's employment , whether by MENDELSON or the Company, whether with or without Cause,whether or not dueto MENDELSON's death, MENDELSON (orhisestate) shall notbe eligible foranyCompany-paid benefits subsequentto thetermination of his employment. In particular, and by way of exampleonly, ifMENDELSON’s termination is for anything other than no cause his eligibility to continuetoparticipate in Company’sgroup health plan, ifany, pursuant toCOBRA shallbeat hissole expenseeffectiveon the firstday ofthemonth following themonth to which hisemployment terminates, subject to COBRA's eligibility requirementsand other terms, conditions, restrictions and exclusions as applicable. If the termination is for no cause then the Company shall cover MENDELSON’s health care cost for two years, the period of which shall be at MENDELSON’s election.
| 7. | RestrictionsonCompetitionandNon-Disclosure. |
| a) | Non-Disclosureof information. |
i. MENDELSONshallnot,directlyorindirectly,disclosetoanypersonorentityforany reason,oruseforhisownpersonalbenefit, anyConfidentialInformation(as definedbelow)eitherduringhisemploymentwiththeCompany orfollowing termination ofthatemploymentforCause fora period ofthreeyearsafter terminationof this Agreement;
ii. MENDELSONshall,atalltimestakeallprecautionsnecessarytoprotectfromlossor disclosurebyhimofanyandalldocumentsorother information containing, referringto orrelating tosuchConfidentialInformation.Upon termination ofhis employment withtheCompany for anyreason,whethervoluntary or involuntary, MENDELSONshall promptly returnto the Companyanyandalldocuments orother tangible property containing,referringtoor relatingtosuch Confidential Information, whether preparedbyhim or others;
iii. NotwithstandinganyprovisiontothecontraryinthisParagraphseven(7),this Paragraphshallnotapplytoinformationwhichhasbecomepartof the public domainor isotherwisepublicly disclosed through nofault oractionof MENDELSON.
If MENDELSON hasreasontobelievethathemaybelegallyrequiredtodisclose ConfidentialInformation,heshallgivetheCompanyreasonablenoticepriorto disclosuresothatit may seek to protect the confidentiality of such information;
iv. Forpurposes ofthisAgreement "ConfidentialInformation"meansany informationrelatinginanywaytothebusiness oftheCompanydisclosedtoor known toMENDELSONasaconsequenceof,result of, or throughMENDELSON's employment bytheCompanywhichconsistsof technical andnon-technical information abouttheCompany's production, processes , programs, concepts, forms, businessmethods, data,anyand allfinancial and accounting data, marketing,customers,customerlists, andservices and informationcorresponding thereto acquired by MENDELSONduringtheterm of MENDELSON's employment bythe Company. ConfidentialInformation shall notinclude anyofsuch itemswhich are published or areotherwisepart of thepublic domain orfreely availablefromtrade sourcesorotherwise.
| b) | DisclosureofWorksandInventions/AssignmentofPatents. |
MENDELSONshallmaintainsuchrecordsofhisworkastheCompanymaydirectfrom timetotime MENDELSON shallpromptly discloseto theCompany, in writing, any and all copyrightable works, including software, and any and all discoveries, inventions, technological innovations and improvements, whether patentable or not (whether it be a machine, process, apparatus, article, composition, design, software, writing or other thing) conceived or made by MENDELSON, solely or jointly, during the periodof his employment with the Company, whether or not authorized,conceived or made during working hours or with the Company's equipmentor facilities, which relates in any manner to the existing or contemplated business of the Company. Unless otherwise waived in writing by the Company, all such copyrightable works (including software), discoveries, inventions, technological innovations and improvements shall be the exclusive propertyof the Company with respect to any and all countries in the world and MENDELSON shall assign and hereby does assign all right, title and interest thereto the Company or its nominee;
i. MENDELSON,bothduringhisemploymentandthereafter,shallcooperatefullywith theCompanyintakingallactionsandmeasuresnecessaryfortheCompany to acquire and perfect itsownershipof all such property ..Whenever required to do so by the Company, MENDELSON shallexecute any and all applications, assignments orother instrumentswhich theCompany shalldeemnecessary to apply for and obtainLetters Patentor copyrights of the United States or any foreign country or to otherwiseprotect the Company's interest therein. Such obligations shall continuebeyond thetermination of employment with respect to works,
inventions,discoveriesandimprovementsauthorized,conceived,madeor reducedtopracticebyMENDELSONduringtheperiodof employment,and shall be bindinguponMENDELSON's assigns,executors, administrators andother legal representatives. In conformance withCompany policy from time totime,
MENDELSONshallbereimbursedbytheCompanyforreasonableexpensesincurredby MENDELSONinconnectionwithhisobligations under this Paragraph subject to MENDELSON’s furnishing adequate documentary evidence to substantiatesuch expenses;
iii.MENDELSONagreesthatintheeventofpublicationbyMENDELSONofwrittenorgraphic materials,otherthanworksof fictionor relating to subjectsoutside of the Company's business, Company will retain and ownall rightsinsaid materials, includingright of copyright.
| c) | RestrictionsonCompetition. |
i. MENDELSONagreesthatduringhisemploymentwiththeCompanyheshallnot, directlyorindirectly,solicitthetradeofor trade with, orotherwise do business with, anycustomer or prospective customer of theCompany or anydirect or indirectcompetitor of the Company. Furthermore, for a period of two years following the termination of his employment withthe Company, MENDELSON shall not, directlyorindirectly, solicitthetrade ofortradewith,any customer,
prospectivecustomer,supplierorprospectivesupplieroftheCompanyonbehalf
oforforthebenefitofanydirectorindirectcompetitorofthe Company;
ii. MENDELSONagreesthatforaperiodoftwo(2)yearsfollowingtheterminationofhis employment withtheCompany,MENDELSON shallnotshallnotown,manage, operate,consult orbeemployed in a business substantially similarto,or competitive with, thepresentbusiness ofthe Company orsuch other business activityinwhichtheCompany substantially engages duringthe termof MENDELSON's employment.
iii. MENDELSONagreesthatduringhisemploymentwiththeCompanyandforaperiodof two(2)yearsfollowingthetermination of MENDELSON'semployment with the Company, MENDELSON shallnot, directlyor indirectly, solicitorinduce,orattemptto solicitor induce, any employee of the Companytoleave the Company for any reason whatsoever orhire any employee of the Company;
iv. DuringhisemploymentwiththeCompany,MENDELSONshallnottakeanyaction whichmightdivertfromtheCompanyanyopportunitywhichwouldbewithinthe scopeofanypresentorcontemplated future businessof theCompany;
v. In theeventofthesaleorotherdispositionofallorsubstantiallyallofthe Company's assetsorcapitalstock, MENDELSON agrees to use his best efforts, ingood faith, to assistthe purchaser (at the purchaser's request) during the transition phase fora period ofupto 12 months at MENDELSON'sthen currentcompensation level. MENDELSON acknowledges, however, thatnothingcontained herein shall be binding upon or otherwiserequire the purchaser of theCompany's assets or
capitalstocktocontinuetheemploymentofMENDELSONaftersuchpurchaseandsale;
vi. TheprovisionssetforthinParagraphseven(7)ofthisAgreementshallsurvive theterminationofMENDELSON'semploymentwiththeCompany, ortheexpiration of this Agreement, as thecase maybe, andshallcontinueto bebinding upon MENDELSONand Employer in accordancewiththeir respective terms;
vii. MENDELSONrecognizesandacknowledgesthattheservicestoberenderedbyhim hereunderareofaspecialanduniquecharacterandthat the restrictions on MENDELSON'sactivitiescontainedin this Agreement are requiredforthe Company's reasonableprotection. MENDELSONagrees thatin theeventof hisbreachofany part
ofParagraphseven(7)ofthisAgreement,theCompanywillbeentitled,ifitso
elects,toinstitute andprosecute proceedingsatlaworinequitytoobtaindamages withrespecttosuchbreach ortoenforcethespecificperformanceofthis AgreementbyMENDELSONortoenjoin MENDELSON from engaginginanyactivity in violation hereof. IntheeventtheCompany institutesproceedings atlaw forits protection, Companyshallbeentitledto receivefrom MENDELSON, andMENDELSON agrees topay all legalcosts andfeesassociated with suchlegal action.
a) Notices.Anynoticerequiredherebyshallbeinwriting,shallbeeffectiveuponreceipt, maybesentbyfacsimiletransmission,Emailor original documentbyhand delivery , overnight courier or certifiedmail,return receiptrequested, postage prepaid tothe addressset forth below. Theoriginalofanynotice sent by facsimiletransmission or Emailshallbe delivered to theaddressee by the close of the business day next followingthedate of the facsimile orEmail transmission orin thecaseof international delivery, the closeofthe third business day followingthe dateof the facsimileor Emailtransmission. Allnotices shallbe sentto:
Iftothe Company:
HighLight Networks, Inc.
7325 OswegoRoad
Liverpool,NY13090
T:315.451.4722
If to MENDELSON:
Danny Mendelson
1 Chellis Ct.
Owings Mills MD 21117
Email:dmendelson,hma@gmail.com
T: 410.382.2640
Anypartymaychangeitsaddressfornoticebygivingtheotherpartyten(10)daysnotice of such change.
b) Validity.AnytermorprovisionsofthisAgreementwhichisinvalidorunenforceable inanyjurisdictionshall, as tosuch jurisdiction, beineffective to the extent of such invalidity or unenforceability without rendering invalid orunenforceable the remaining terms and provisionsof this Agreement or affecting the validity or enforceabilityofany term s or provisions thereof.
c) Counterparts.ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemed an original, but allof which shall constitute the same Agreement.
d) Modification.ThisAgreementsetsforththeentireagreementandunderstandingof thepartiesconcerningthesubjectmatter hereof and supersedesall prior agreements and understandings between thepartieshereto. This Agreement may not be amended ormodifiedexceptby written instrument executed by the parties hereto.
e) GoverningLaw.ThisAgreementshallbegovernedbyandconstruedinaccordance withthelawsof theStateof New York without givingeffect to conflictof laws provisions andwithoutthe aidof anycanon, customor rule of law requiring construction against thedraftingperson.
| f) | BindingEffect.ThetermsandprovisionsofthisAgreementshallbebindinguponand |
shallinuretothebenefitofthepartieshereto,theirheirs,successorsandassigns. In the event Company or substantially allits assets is acquiredby another entity,or in the event Company mergeswith another entity, this Agreement shall remain in full force and effect. Neither party may assign, convey or transfer the rights or obligations contained herein unless such obligations, assignment, conveyance ortransfer is consented to by theother,which consent shall not be unreasonably denied, or such assignment, transfer orconveyance is pursuant to a testamentary transfer or otherwise byoperation of law.
| g) | Headings.Headingsin thisAgreementareincludedhereinforconvenienceonlyand shallnotconstituteapartofthisAgreementforanyotherpurposeor be givenany substance effect. |
h) Authorship.ThisAgreementshallbeconclusivelydeemedtohavebeenjointly preparedandauthoredbythepartiesheretoandtheir representatives andno ambiguity shall be construed against any party hereto based onsuchauthorship.
INWITNESSWHEREOF,thepartieshaveexecutedthisAgreementasofthedatefirstwritten above.
| /s/ Alfonso Knoll | /s/ Danny Mendelson |
| Alfonso Knoll | Danny Mendelson |
Director & President HighLight Networks, Inc | |
| | |
Exhibit 10.1
HighLightNetworksInc.EmploymentAgreement
ThisEmploymentAgreement(hereinafterreferred toas"Agreement"),isenteredintoas ofthis15th of April,2013,byandbetween HighLight NetworksInc.,(hereinafter referred to as the "Company") and Danny WEAVER ("WEAVER").
WITNESSETH:
WHEREAS,theCompanydesirestoemployWEAVERandWEAVERdesirestobe
employed bytheCompanyastheExecutive Vice President(EVP) and Chief Operating Officer (CEO) of EZRecycling, Inc. (EZ)uponthetermsandconditions setforthherein;and
WHEREAS,WEAVERandCompanydesiretoreducethetermsofWEAVER’s
employmentwiththeCompanytoawrittencontract;
NOWTHEREFORE,inconsiderationofthepremisesandmutualcovenants
containedhereinandintendingtobelegallyboundhereby,thepartiesheretoagreeasfollows:
1.Employment.
PursuanttothetermsofthisAgreement,theCompanyherebyemploysWEAVERasthe EVP and CO of the Company.
WEAVERshallreportdirectlytothe Chief Executive Officer of the Companyandshallperformsuch dutiesasarecustomarilyperformedbyapersonholdingthe position of EVP and COO inbusinesses similartothose engaged in bythe Company and its subsidiaries andshall,inaddition, render suchother reasonable services asmaybeassigned tohim, fromtimetotime, bythe Company’s CEO or their designeewithin WEAVER'sscope of experience,trainingand expertise.
WEAVER herebyagreestobeemployedasEVPoftheCompany and CEO of the Companyforthetermhereofasset forth below. WEAVER agrees that he shall at all times faithfully and to the best of his ability, perform all of the duties that may reasonably berequestedof himwithinhisscope ofexperience,training and expertisepursuant to the termsof thisAgreement.
TheCompanyrepresentsandwarrantstoWEAVERthatthisAgreementhasbeendulyand validlyauthorizedandexecutedbyandonbehalf oftheCompany andthat itconstitutes thelawful, valid and binding obligationoftheCompany.
WEAVERrepresentsandwarrantstotheCompanythatheisfreetoacceptemployment hereunderandthathehasnoprior orexistingobligations, commitments orrestraints of anykindthatwould inanyway hinder orinterferewithhis acceptance of, or thefull performance of, his employment hereunder . When executed, thisAgreement will constitute thelawful,validand binding obligation of WEAVER.
DuringhisemploymentwiththeCompany,WEAVERshalldevotenotlessthan90% ofhis workingtime,totheperformance ofhis responsibilities hereunder in a mannerwhich will faithfully and diligently further thebusiness and interest oftheCompany. Subject to and consistentwiththe provisions of Paragraphseven (7)below, WEAVER,duringandwhile employed bytheCompany,may notprovide anyservicesto or receiveanycompensation from anycompetitor orpotential competitor of theCompany.
6. Term.
UnlessearlierterminatedinaccordancewithParagraphfive(5)below,thisAgreement shallcontinueforaninitialperiodofone (1)yearfromthedateonwhichbothparties executethisAgreement.Thereafter, this Agreement shallbeextendedautomaticallyfor successive termsof one(1)year unless (i) theCompanyorWEAVER giveswrittennotice of termination to theotherpartyhereto atleast Sixty(60)daysprior tothetermination of the initialtermofemployment hereunder oranyrenewalterm thereof,or (ii)unless earlier terminatedas hereinprovided.
CompanyshallpaytoWEAVERanannualsalaryoftwohundredthousanddollars(US
$200,000)contingentupontheconditionssetforthinthisParagraph.WEAVER's salaryandotherbenefitsshallbereviewedannuallyby the Board ofDirectorsof the Companyand with WEAVER.The salaryshall be paid in equal periodic installments in accordance with the Company's salarypractices. The salarypayment shall notin any waylimit or reduce any other obligationof the Companyhereunder, and no other compensation, benefitor paymenthereunder shallin any way limitor reducethe obligation of the Company to pay WEAVER's salary hereunder. A portion of WEAVER's salary is included as a portion of the Company's SG&A, but shall not be paid in full if capital or revenue is not available to the Company during the term of this Agreement. Such salary will begin once EBITDA has reached two million dollars ($2,000,000) based on a twelve month trailing average beginning April 1, 2013.
As additional compensation, Company agrees to deliver to WEAVER one hundred fifty (150,000) thousand shares of Restricted Common Stock in HighLight Networks, Inc., par value $0.001 per share, (hereinafter “HNET shares”) in two certificates of seventy-five thousand (75,000) each as follows:
i. The first certificate will be fully vested upon issue.
ii. The second certificate will be designated to be vested one (1) full year after the execution date of this agreement.
iii. Should WEAVER leave or be separated from the Company before that time, the second certificate will be cancelled and he will return the certificate to the Company for its records.
DuringthetermofWEAVER'semploymenthereunder,WEAVERshallreceive
reimbursementfromtheCompanyforallreasonableexpensesincurredbyWEAVERin theperformanceofhisdutieshereunder,including,by wayofexampleand not limitation, travel andliving expenseswhileawayfrom homeon business atthe requestofor in theservice oftheCompany, provided that such expensesare incurred andaccounted forin accordance with thestandardpolicies and procedures established,from time to time, bytheCompany for reimbursement ofexpenses.
WEAVERshallbeentitledtoreceiveaquarterlyperformancebonusequalto1%of netmargin,definedasrevenues after cost of goods sold and beforeSG&A,paidquarterly,As long asthenetresult isthattheCompanyachieves an EDITDA ofno less than 10% of revenues.
WEAVERshallbeentitledtoparticipateinthesamemannerasotherofficersofthe Companyinsuch lifeinsurance, medical,dental, disability,pension, retirement plans andotherprograms as may beestablished by the Company, from timeto time, forthe benefit ofits officers.Except as provided elsewhere herein, nothingherein shall affect theCompany'srightto amend, modify orterminate anyretirement orother benefitplan at any time for anyreason.
WEAVERshallbeentitledtovacation as mutually approved until such time as the Company adopts a formal
vacation policy including all corporate officers.
8. WarrantiesandIndemnificationbytheCompany. The Companywarrantsandrepresentsto WEAVERthat:
d) TheCompanyshallindemnifyandsaveWEAVERharmlessfromanyandallclaims incurredormadeagainstWEAVERarisingdirectlyorindirectlyfromanynegligent or wrongfulacts or omissionsbytheCompany,provided thatany such negligent or wrongful actsor omissions donotoccurasaresult ofWEAVER'sownacts orfailureto acton behalfoftheCompany in hisrole as EVP of the Company.TheCompany shall use itsbest efforts to obtain insurance of the kind and amount reasonably necessary to provide adequate protection to WEAVER.
e) TheCompany shallprovidetoWEAVERanyassistanceoraccesstoinformationand facilitiesreasonablyrequiredbyWEAVERtoperformhisobligationsunderthis Agreement.
| f) | TheCompanyshallprovideWEAVERreasonableassistanceinhiscompliancewiththe legalrequirementsexistingfromtimetotimesoastoallowWEAVERtoperform his dutiesastheCompany'sEVP and as CEO of EZ. |
| 9. | TerminationofEmployment. |
ThisAgreementandWEAVER'semploymenthereundermaybeterminatedonlyunderthe followingcircumstancesduringthetermofthis Agreement:
WEAVERmayterminatehisemploymentwiththeCompanyforanyreasonbygivingthe
Companynotlessthan60dayspriornoticeofhisintenttoterminatehisemployment. Intheeventof thetermination of thisAgreement by WEAVER,and atCompany's option, Company may immediately terminate WEAVER’s employment andshall only payWEAVER's salaryearnedandoweduptothedateofsuch termination andWEAVER shallnot be entitledtothe benefits ofParagraph six(6) below.
WEAVER'semploymenthereundershallterminateuponhisdeath.
Ifasaresultof WEAVER'sincapacityduetophysicalormentalillness,WEAVERshall havebeenunabletoperform hisduties hereunder fora period oftwo (2)consecutive months during the term hereof, the Company may terminate WEAVER's employment hereunder.
CompanymayterminateWEAVER'semploymentwiththeCompanyforcause. "Cause"forthepurposesofthisAgreement,shallincludetheCompany'sgood faith beliefthat WEAVERhasengaged in anyoneormore of the following: willful misconduct, fraud, misappropriation , embezzlement, grossnegligence,incompetence , self-dealing, dishonesty, misrepresentation , materialviolation of any Companypolicy orany provisions of this Agreement (i.e.,confidentiality, ethics,harassment/ discrimination, orviolence, substance or alcoholabuse) unsatisfactory performance or incompetence. "Cause “also shall include WEAVER's inability to perform theessential functions of his jobas described todate, for any reason, for a periodof timeset forth in Paragraphseven (7) above, and anyother circumstances which, under applicable law, would give theCompanythe right to terminate WEAVER , withsuch termination being deemedtobefor cause.
6.CompensationUponTerminationof Employment.
d) IfWEAVER'semploymentisterminatedforcauseunderParagraph5(d)above,the CompanyshallpayWEAVERhisfullsalarythrough the termination date,plusall expense
reimbursementsoutstanding,ifany,andthe Companyshallhavenofurther obligationswhatsoevertoWEAVERunderthisAgreement,exceptasmay be expressly provided elsewhere herein.
e) TheterminationofWEAVER'semploymenteitherbyWEAVERorbytheCompany, whetherwithorwithoutCause, shall not release WEAVERfrom WEAVER's obligations andrestrictions under Paragraph seven (7) of this Agreement.
f) Regardlessof thereasonfortheterminationofWEAVER'semployment,whetherby WEAVERortheCompany,whetherwithorwithout Cause,whether ornot due to WEAVER's death, WEAVER (or hisestate) will receivepayforanydays actually worked by WEAVER plus expensesprior tothetermination ofhis employment. If such termination is without cause WEAVER will also be entitled the pro-rata portion of any bonuses due through the termination date. Regardless of the reason for thetermination of WEAVER 's employment , whether by WEAVER or the Company, whether with or without Cause,whether or not dueto WEAVER's death, WEAVER (orhisestate) shall notbe eligible foranyCompany-paid benefits subsequentto thetermination of his employment. In particular, and by way of exampleonly, ifWEAVER’s termination is for anything other than no cause his eligibility to continuetoparticipate in Company’sgroup health plan, ifany, pursuant toCOBRA shallbeat hissole expenseeffectiveon the firstday ofthemonth following themonth to which hisemployment terminates, subject to COBRA's eligibility requirementsand other terms, conditions, restrictions and exclusions as applicable. If the termination is for no cause then the Company shall cover WEAVER’s health care cost for two years, the period of which shall be at WEAVER’s election.
| 9. | RestrictionsonCompetitionandNon-Disclosure. |
| d) | Non-Disclosureof information. |
i. WEAVERshallnot,directlyorindirectly,disclosetoanypersonorentityforany reason,oruseforhisownpersonalbenefit, anyConfidentialInformation(as definedbelow)eitherduringhisemploymentwiththeCompany orfollowing termination ofthatemploymentforCause fora period ofthreeyearsafter terminationof this Agreement;
ii. WEAVERshall,atalltimestakeallprecautionsnecessarytoprotectfromlossor disclosurebyhimofanyandalldocumentsorother information containing, referringto orrelating tosuchConfidentialInformation.Upon termination ofhis employment withtheCompany for anyreason,whethervoluntary or involuntary, WEAVERshall promptly returnto the Companyanyandalldocuments orother tangible property containing,referringtoor relatingtosuch Confidential Information, whether preparedbyhim or others;
iii. NotwithstandinganyprovisiontothecontraryinthisParagraphseven(7),this Paragraphshallnotapplytoinformationwhichhasbecomepartof the public domainor isotherwisepublicly disclosed through nofault oractionof WEAVER.
If WEAVER hasreasontobelievethathemaybelegallyrequiredtodisclose ConfidentialInformation,heshallgivetheCompanyreasonablenoticepriorto disclosuresothatit may seek to protect the confidentiality of such information;
iv. Forpurposes ofthisAgreement "ConfidentialInformation"meansany informationrelatinginanywaytothebusiness oftheCompanydisclosedtoor known toWEAVERasaconsequenceof,result of, or throughWEAVER's employment bytheCompanywhichconsistsof technical andnon-technical information abouttheCompany's production, processes , programs, concepts, forms, businessmethods, data,anyand allfinancial and accounting data, marketing,customers,customerlists, andservices and informationcorresponding thereto acquired by WEAVERduringtheterm of WEAVER's employment bythe Company. ConfidentialInformation shall notinclude anyofsuch itemswhich are published or areotherwisepart of thepublic domain orfreely availablefromtrade sourcesorotherwise.
| e) | DisclosureofWorksandInventions/AssignmentofPatents. |
WEAVERshallmaintainsuchrecordsofhisworkastheCompanymaydirectfrom timetotime WEAVER shallpromptly discloseto theCompany, in writing, any and all copyrightable works, including software, and any and all discoveries, inventions, technological innovations and improvements, whether patentable or not (whether it be a machine, process, apparatus, article, composition, design, software, writing or other thing) conceived or made by WEAVER, solely or jointly, during the periodof his employment with the Company, whether or not authorized,conceived or made during working hours or with the Company's equipmentor facilities, which relates in any manner to the existing or contemplated business of the Company. Unless otherwise waived in writing by the Company, all such copyrightable works (including software), discoveries, inventions, technological innovations and improvements shall be the exclusive propertyof the Company with respect to any and all countries in the world and WEAVER shall assign and hereby does assign all right, title and interest thereto the Company or its nominee;
i. WEAVER,bothduringhisemploymentandthereafter,shallcooperatefullywith theCompanyintakingallactionsandmeasuresnecessaryfortheCompany to acquire and perfect itsownershipof all such property ..Whenever required to do so by the Company, WEAVER shallexecute any and all applications, assignments orother instrumentswhich theCompany shalldeemnecessary to apply for and obtainLetters Patentor copyrights of the United States or any foreign country or to otherwiseprotect the Company's interest therein. Such obligations shall continuebeyond thetermination of employment with respect to works,
inventions,discoveriesandimprovementsauthorized,conceived,madeor reducedtopracticebyWEAVERduringtheperiodof employment,and shall be bindinguponWEAVER's assigns,executors, administrators andother legal representatives. In conformance withCompany policy from time totime,
WEAVERshallbereimbursedbytheCompanyforreasonableexpensesincurredby WEAVERinconnectionwithhisobligations under this Paragraph subject to WEAVER’s furnishing adequate documentary evidence to substantiatesuch expenses;
iii.WEAVERagreesthatintheeventofpublicationbyWEAVERofwrittenorgraphic materials,otherthanworksof fictionor relating to subjectsoutside of the Company's business, Company will retain and ownall rightsinsaid materials, includingright of copyright.
| f) | RestrictionsonCompetition. |
i. WEAVERagreesthatduringhisemploymentwiththeCompanyheshallnot, directlyorindirectly,solicitthetradeofor trade with, orotherwise do business with, anycustomer or prospective customer of theCompany or anydirect or indirectcompetitor of the Company. Furthermore, for a period of two years following the termination of his employment withthe Company, WEAVER shall not, directlyorindirectly, solicitthetrade ofortradewith,any customer,
prospectivecustomer,supplierorprospectivesupplieroftheCompanyonbehalf
oforforthebenefitofanydirectorindirectcompetitorofthe Company;
ii. WEAVERagreesthatforaperiodoftwo(2)yearsfollowingtheterminationofhis employment withtheCompany,WEAVER shallnotshallnotown,manage, operate,consult orbeemployed in a business substantially similarto,or competitive with, thepresentbusiness ofthe Company orsuch other business activityinwhichtheCompany substantially engages duringthe termof WEAVER's employment.
iii. WEAVERagrees thatduringhisemploymentwiththeCompanyandforaperiodof two(2)yearsfollowingthetermination of WEAVER'semployment with the Company, WEAVER shallnot, directlyor indirectly, solicitorinduce, orattemptto solicitor induce, any employee of the Companytoleave the Company for any reason whatsoever orhire anyemployee of the Company;
iv. DuringhisemploymentwiththeCompany,WEAVERshallnottakeanyaction whichmightdivertfromtheCompanyanyopportunitywhichwouldbewithinthe scopeofanypresentorcontemplated future businessof theCompany;
v. In theeventofthesaleorotherdispositionofallorsubstantiallyallofthe Company's assetsorcapitalstock, WEAVER agrees to use his best efforts, ingood faith, to assistthe purchaser (at the purchaser's request) during the transition phase fora period ofupto 12 months at WEAVER'sthen currentcompensation level. WEAVER acknowledges, however, thatnothingcontained herein shall be binding upon or otherwiserequire the purchaser of theCompany's assets or
capitalstocktocontinuetheemploymentofWEAVERaftersuchpurchaseandsale;
vi. TheprovisionssetforthinParagraphseven(7)ofthisAgreementshallsurvive theterminationofWEAVER'semploymentwiththeCompany, ortheexpiration of this Agreement, as thecase maybe, andshallcontinueto bebinding upon WEAVERand Employer in accordancewiththeir respective terms;
vii. WEAVERrecognizesandacknowledgesthattheservicestoberenderedbyhim hereunderareofaspecialanduniquecharacterandthat the restrictions on WEAVER'sactivitiescontainedin this Agreement are requiredforthe Company's reasonableprotection. WEAVERagrees thatin theeventof hisbreachofany part
ofParagraphseven(7)ofthisAgreement,theCompanywillbeentitled,ifitso
elects,toinstitute andprosecute proceedingsatlaworinequitytoobtaindamages withrespecttosuchbreach ortoenforcethespecificperformanceofthis AgreementbyWEAVERortoenjoin WEAVER from engaginginanyactivity in violation hereof. IntheeventtheCompany institutesproceedings atlaw forits protection, Companyshallbeentitledto receivefrom WEAVER, andWEAVER agrees topay all legalcosts andfeesassociated with suchlegal action.
i) Notices.Anynoticerequiredherebyshallbeinwriting,shallbeeffectiveuponreceipt, maybesentbyfacsimiletransmission,Emailor original documentbyhand delivery , overnight courier or certifiedmail,return receiptrequested, postage prepaid tothe
addresssetforthbelow.Theoriginalofanynoticesentbyfacsimiletransmissionor Emailshallbedeliveredto theaddressee by the closeof the businessdaynext following the dateofthe facsimileorEmail transmission orin the case ofinternational delivery, thecloseofthethird business dayfollowing thedate of the facsimileor Email transmission. Allnotices shall be sent to:
Iftothe Company:
HighLight Networks, Inc.
7325 OswegoRoad
Liverpool,NY13090
T:315.451.4722
If to WEAVER:
Richard M. Weaver
3102 Landfall Lane
Annapolis, MD 21403
Email: dweaver.hma@gmail.com
T: 443.255.9439
Anypartymaychangeitsaddressfornoticebygivingtheotherpartyten(10)daysnotice of such change.
j) Validity.AnytermorprovisionsofthisAgreementwhichisinvalidorunenforceable inanyjurisdictionshall, as tosuch jurisdiction, beineffective to the extent of such invalidity or unenforceability without rendering invalid orunenforceable the remaining terms and provisionsof this Agreement or affecting the validity or enforceabilityofany term s or provisions thereof.
k) Counterparts.ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemed an original, but allof which shall constitute the same Agreement.
l) Modification.ThisAgreementsetsforththeentireagreementandunderstandingof thepartiesconcerningthesubjectmatter hereof and supersedesall prior agreements and understandings between thepartieshereto. This Agreement may not be amended ormodifiedexceptby written instrument executed by the parties hereto.
m)GoverningLaw.ThisAgreementshallbegovernedbyandconstruedinaccordance withthelawsof theStateof New York without givingeffect to conflictof laws provisions andwithoutthe aidof anycanon, customor rule of law requiring construction against thedraftingperson.
| n) | BindingEffect.ThetermsandprovisionsofthisAgreementshallbebindinguponand |
shallinuretothebenefitofthepartieshereto,theirheirs,successorsandassigns. In the event Company or substantially allits assets is acquiredby another entity,or in the event Company mergeswith another entity, this Agreement shall remain in full force and effect. Neither party may assign, convey or transfer the rights or obligations contained herein unless such obligations, assignment, conveyance ortransfer is consented to by theother,which consent shall not be unreasonably denied, or such assignment, transfer orconveyance is pursuant to a testamentary transfer or otherwise byoperation of law.
| o) | Headings.Headingsin thisAgreementareincludedhereinforconvenienceonlyand shallnotconstituteapartofthisAgreementforanyotherpurposeor be givenany substance effect. |
p) Authorship.ThisAgreementshallbeconclusivelydeemedtohavebeenjointly preparedandauthoredbythepartiesheretoandtheir representatives andno ambiguity shall be construed against any party hereto based onsuchauthorship.
INWITNESSWHEREOF,thepartieshaveexecutedthisAgreementasofthedatefirstwritten above.
| /s/ Alfonso Knoll | /s/ Richard M. Weaver |
| Alfonso Knoll | Richard M. Weaver |
Director & President HighLight Networks, Inc | |
| | |
