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Exhibit 10.15
SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT
SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT entered into as of the
11th day of October, 1999, by and among QUEPASA.COM, INC., a Nevada corporation
(the "Company"), and GARY L. TRUJILLO ("Trujillo").
RECITALS
A. The Company and Trujillo entered into an Employment Agreement dated
April 26, 1999, and an Amended and Restated Employment Agreement dated June 15,
1999 (collectively, the "Employment Agreement").
B. On June 15, 1999, Trujillo was promoted by the Company to Chairman,
Chief Executive Officer and President and in connection therewith was charged
with various new duties and responsibilities.
C. The Company and Trujillo desire to amend and restate the Employment
Agreement as a result of the change in Trujillo's title and duties.
NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree that the Employment Agreement is hereby amended and restated as follows:
1. EMPLOYMENT. The Company hereby employs Trujillo and Trujillo hereby
accepts employment with the Company as its Chairman, Chief Executive Officer and
President upon the terms and conditions hereinafter set forth. Trujillo's
employment shall not be deemed an "at will" employment.
2. DUTIES. Trujillo will serve the Company as its Chairman, Chief
Executive Officer and President and will faithfully and diligently perform the
services and functions as mutually agreed to in writing, relating to such office
and position or otherwise reasonably incident to such office and position,
provided that all such services and functions will be reasonable and within
Trujillo's areas of expertise. Trujillo's specific duties shall include those
related to (i) oversight of all phases of the Company's operations, (ii)
development of the Company's strategic relationships and (iii) such other duties
as the Company may reasonably direct. Trujillo will, during the term of this
Agreement (or any extension thereof), devote his time, attention, skills and
best efforts as a full-time employee to the promotion of the business of the
Company.
3. TERM. This Agreement and Trujillo's employment shall commence on
April 26, 1999 (the "Effective Date"), and shall continue for a term of five
years (the "Term") unless terminated earlier in accordance with this Agreement.
The Term of this Agreement may be extended by written agreement among the
Company and Trujillo.
4. COMPENSATION. As compensation for the services rendered to the
Company under this Agreement commencing as of September 1, 1999, Trujillo will
be paid a base salary of $225,000 per year payable in accordance with the then
current payroll policies of the Company or as otherwise agreed to by the parties
(the "Salary"). The Salary shall be automatically increased 10% per annum during
the Term, effective as of January 1 of each year, commencing on January 1, 2000.
At any time and from time to time,
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the Salary may be increased or decreased if so determined by the Compensation
Committee (the "Compensation Committee") of the Board of Directors (the "Board")
of the Company after a review of Trujillo's performance of his duties hereunder.
Trujillo shall be eligible for an annual discretionary bonus on a calendar year
basis to be determined by the Compensation Committee.
Trujillo will also receive as compensation under this Agreement 100,000
shares (the "Shares") of the Company's $.001 par value common stock ("Common
Stock"), 50,000 shares of which shall be issued by the Company and 50,000 shares
of which shall be transferred from Jeffrey S. Peterson, a director and the
former Chief Executive Officer of the Company. In the event Trujillo's
employment with the Company is terminated on or before April 26, 2000 for
"Cause" (as hereinafter defined) or by voluntary termination of this Agreement
by Trujillo, then 50,000 Shares shall be sold by Trujillo to the Company at the
greater of $10.00 per share or the fair market value of the Shares at the time
of termination. In any event, the Company agrees that Trujillo will retain a
minimum of 50,000 shares as compensation for his participation in, and
assistance with, the Company's initial public offering prior to the Effective
Date of this Agreement.
5. TERMINATION. This Agreement will terminate upon the occurrence of
any of the following events:
a. The death of Trujillo;
b. The "Total Disability" (as hereinafter defined) of Trujillo;
c. Written notice to Trujillo from the Company of termination for
"Cause" (as hereinafter defined);
d. The voluntary termination of this Agreement by Trujillo upon
30 days prior written notice; or
e. The later of five years from the Effective Date of this
Agreement or the date to which this Agreement is extended in
accordance with Section 3 above.
"Total Disability" means physical or mental disability, or both,
determined to be (or reasonably expected to be, based upon then available
medical information) of not less than twelve months duration or more where
Trujillo is unable to reasonably perform the duties he was performing for the
Company immediately prior to such disability. The determination shall rest upon
the opinion of the physician regularly attending Trujillo. If the Company
disagrees with said physician's opinion, the Company may engage at their own
expense a physician to examine the Trujillo, and Trujillo hereby consents to
such examination and to waive, if applicable any privilege between the physician
and Trujillo that may arise as a result of said examination. If after
conferring, the two physicians cannot concur on a final opinion, they shall
choose a third consulting physician whose opinion shall control. The expense of
the third consulting physician shall be borne equally by the Trujillo and the
Company.
"Cause" means (i) Trujillo has failed to substantially perform his
duties in accordance with Section 2 hereof as reasonably determined by the
Board, (ii) Trujillo has failed to comply with the reasonable directives and
policies of the Board and such conduct is not cured within thirty days after
counseling by the Company or (iii) Trujillo breaches his fiduciary duty to the
Company or commits any dishonest, unethical, fraudulent, or felonious act in
respect to Trujillo's duties to the Company.
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6. STOCK OPTIONS. Trujillo shall be granted options to purchase up to
950,000 shares of Common Stock (the "Options") pursuant to the Company's Amended
and Restated 1998 Stock Option Plan (the "Plan"), 350,000 of which Options shall
vest on the Effective Date and be exercisable at $7.00 per share, and 600,000 of
which Options shall vest monthly pursuant to the Plan and be exercisable at
$7.74 per share. In the event Trujillo's employment is terminated by the Company
for any reason other for "Cause," then all unexercised Options shall be
automatically accelerated so that they will vest and be exercisable as to all
shares covered thereby upon such termination and shall be exercisable for a
period of ten years from the date of grant, notwithstanding anything to the
contrary contained in this Section 6 or any other provision of this Agreement or
the Plan. In the event a transaction occurs constituting a Change of Control (as
defined below), all unexercised Options shall be automatically accelerated so
that they will vest and be exercisable as to all shares covered thereby
immediately and without further action, notwithstanding anything to the contrary
contained in this Section 6 or any other provision of this Agreement or the
Plan. A "Change of Control" is a transaction constituting (i) a sale of all or
substantially all of the assets of the Company or (ii) a merger, acquisition,
consolidation or other transaction involving the transfer or issuance of at
least 30% of the outstanding voting stock of the Company. Except as otherwise
specifically set forth herein, the Options shall be subject to the terms and
conditions of the Plan.
7. LOAN. The Company has loaned to Trujillo $100,000 (the "Loan") on
the Effective Date. The Loan is evidenced by a promissory note (the "Note") with
interest payable at 10% per annum and with all principal and accrued but unpaid
interest due one year from the Effective Date, if not sooner paid. The Company
agrees that if Trujillo has been employed by the Company for six continuous
months from the Effective Date, 50% of the principal balance and accrued but
unpaid interest shall be forgiven by the Company, and if Trujillo has been
employed by the Company for 12 continuous months from the Effective Date, the
remaining 50% of the principal balance and accrued but unpaid interest shall be
forgiven by the Company, and the Note evidencing the Loan shall be canceled and
deemed paid in full.
8. BENEFITS. Trujillo shall be entitled to participate in any Company
benefits as they become available, if at all, and which are normal and customary
Company benefits for executives of the Company. In addition, Trujillo shall be
entitled to the following benefits:
a. Four weeks paid vacation per annum for each year Trujillo is
employed by the Company during the Term in addition to all paid Company
holidays. Any accrued vacation time that is unused by Trujillo as of the close
of business on December 31 for each year of the Term will be paid to Trujillo in
the form of cash compensation.
b. A vehicle allowance equal to $1,000 per month commencing on the
Effective Date;
c. Full health and dental insurance coverage for Trujillo and his
family members, as provided to the Company's other senior executives; and
d. Reimbursement by the Company for all dues and expenses associated
with Trujillo's involvement in professional organizations and associations
including, but not limited to, the Greater Phoenix Leadership and Young
President's Organization (local and international) and all other organizations
and associations appropriate for Trujillo's position with the Company.
9. EXPENSES. Trujillo is authorized to incur such reasonable expenses
as he deems necessary and appropriate for promoting the business of the Company,
including expenses for entertainment, travel and
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similar items. The Company shall reimburse Trujillo for all such expenses on the
presentation by Trujillo of itemized accounts of such expenditures in accordance
with guidelines set forth by the Company and the Internal Revenue Service.
10. NON-COMPETITION AND CONFIDENTIALITY.
a. Non-Competition. The Company and Trujillo acknowledge and agree
that Trujillo's services are of a special and unusual character which have a
unique value to the Company, the loss of which cannot be adequately compensated
by damages in an action at law and if used in competition with the Company,
could cause serious harm to the Company. Accordingly, Trujillo agrees that for a
period of two years after the termination of his employment by the Company,
irrespective of the reason for such termination, Trujillo will not (1) enter
into any agreement with or directly or indirectly solicit or attempt to solicit
any employee or other representatives of the Company, with the exception of
Michele Vahsen, for the purpose of causing them to leave the Company to take
employment with any other business entity, or (2) compete, directly or
indirectly, with the Company in any way and that Trujillo will not act as an
officer, director, employee, consultant, lender or agent of any entity engaged
in any business of the same nature as, or in competition with, the business in
which the Company is engaged as of the Effective Date of this Agreement.
b. Confidentiality.
(1) Trujillo acknowledges that in Trujillo's employment
hereunder, Trujillo will be making use of, acquiring and adding to the Company's
trade secrets and its confidential and proprietary information of a special and
unique nature and value relating to such matters as, but not limited to, the
Company's business operations, internal structure, financial affairs, programs,
software systems, procedures, manuals, confidential reports, lists of clients
and prospective clients and sales and marketing methods, as well as the amount,
nature and type of services, equipment and methods used and preferred by the
Company's clients and the fees paid by such clients, all of which shall be
deemed to be confidential information. Trujillo acknowledges that such
confidential information has been and will continue to be of central importance
to the business of the Company and that disclosure of it to or its use by others
could cause substantial loss to the Company. In consideration of employment by
the Company, Trujillo agrees that during the Term and any renewal term of this
Agreement and upon and after leaving the employ of the Company for any reason
whatsoever, Trujillo shall not, for any purpose whatsoever, directly or
indirectly, divulge or disclose to any person or entity any of such confidential
information which was obtained by Trujillo as a result of the Trujillo's
employment with the Company or any trade secrets of the Company, but shall hold
all of the same confidential and inviolate. The Company acknowledges and agrees
that Trujillo has in his possession an extensive contact list and that such list
will remain Trujillo's personal property and not become the property of the
Company.
(2) All contracts, agreements, financial books, records,
instruments and documents; client lists; memoranda; data; reports; programs;
software, tapes; Rolodexes; telephone and address books; letters; research; card
decks; listings; programming; and any other instruments, records or documents
relating or pertaining to clients serviced by the Company or Trujillo, the
services rendered by Trujillo, or the business of the Company (collectively, the
"Records") shall at all times be and remain the property of the Company. Upon
termination of this Agreement and Trujillo's employment under this Agreement for
any reason whatsoever, Trujillo shall return to the Company all Records (whether
furnished
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by the Company or prepared by Trujillo), and Trujillo shall neither make nor
retain any copies of any of such Records after such termination.
(3) All inventions and other creations, whether or not
patentable or copyrightable, and all ideas, reports and other creative works,
including, without limitation, computer programs, manuals and related materials,
made or conceived in whole or in part by Trujillo while employed by the Company
and within one year thereafter, which relate in any manner whatsoever to the
business, existing or proposed, of the Company or any other business or research
or development effort in which the Company or any of its subsidiaries or
affiliates engages during Trujillo's employment by the Company will be disclosed
promptly by Trujillo to the Company and shall be the sole and exclusive property
of the Company. All copyrightable works created by Trujillo and covered by this
Section 10b(3) shall be deemed to be works for hire. Trujillo shall cooperate
with the Company in patenting or copyrighting all such inventions, ideas,
reports and other creative works, shall execute, acknowledge, seal and deliver
all documents tendered by the Company to evidence its ownership thereof through
the world, and shall cooperate with the Company obtaining, defending and
enforcing its rights therein.
c. Certain Claims Upon Termination. Trujillo understands that if
within one year prior to the termination of Trujillo's employment with the
Company, Trujillo has either (i) committed an act of theft, dishonesty, gross
dereliction of duty, fraud, embezzlement, misappropriation, or breach of
fiduciary duty against the Company or any other act of comparable misconduct
against the Company; or (ii) breached any of his obligations under this
Agreement, then the Company shall have the right to purchase any or all shares
of Common Stock of the Company owned by Trujillo at the time of such termination
for a purchase price equal to the amount that Trujillo paid for such shares,
together with interest thereon at a rate of 10% per annum. If the Company
desires to exercise such right, it shall notify Trujillo within 60 days after
the date of such termination and Trujillo shall tender the shares being
purchased by the Company at the time and place designated in such notice from
the Company upon receipt of the purchase price for such shares. If Trujillo
fails to tender such shares, the shares shall be deemed to be canceled as of the
date the Company tenders payment of the purchase price thereof.
d. Enforceability. In the event of the breach of the covenants
contained in this Section 10, it is understood that damages will be difficult to
ascertain and the Company may petition a court of law or equity for injunctive
relief in addition to any other relief which the Company may have under the law,
this Agreement or any other agreement executed in connection herewith. In
connection with the bringing of any legal or equitable action for the
enforcement of this Agreement, the Company shall be entitled to recover, whether
the Company seeks equitable relief, and regardless of what relief is afforded,
such reasonable attorneys' fees and expenses as the Company may incur in
prosecution of the Company's claim for breach hereof.
It is hereby agreed that the provisions of this Section 10 are separate
and independent from the other provisions of this Agreement, that these
provisions are specifically enforceable by the Company notwithstanding any claim
by Trujillo that the Company has violated or breached this Agreement or any
claim that Trujillo is entitled to any offset or compensation.
To induce the Company to enter into this Agreement, Trujillo represents
and warrants to the Company that Section 10 of this Agreement is enforceable by
the Company in accordance with its terms.
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The parties hereto agree that to the extent that any provision or
portion of Section 10 of this Agreement shall be held, found or deemed to be
unreasonable, unlawful or unenforceable by a court of competent jurisdiction,
then any such provision or portion thereof shall be deemed to be modified to the
extent necessary in order that any such provision or portion thereof shall be
legally enforceable to the fullest extent permitted by applicable law; and the
parties hereto do further agree that any court of competent jurisdiction shall,
and the parties hereto do hereby expressly authorize, request and empower any
court of competent jurisdiction to, enforce any such provision or portion
thereof or to modify any such provision or portion thereof in order that any
such provision or portion thereof shall be enforced by such court to the fullest
extent permitted by applicable law.
11. WAIVER OF BREACH. The waiver by any party hereto of a breach of any
provision of this Agreement will not operate or be construed as a waiver of any
subsequent breach by any party.
12. NOTICES. Any notices, consents, demands, request, approvals and
other communications to be given under this Agreement by either party to the
other will be deemed to have been duly given if given in writing and personally
delivered, faxed or if sent by mail, registered or certified, postage prepaid
with return receipt requested, as follows:
If to the Company: quepasa.com, inc.
One Arizona Center
400 E. Van Buren, Suite 400
Phoenix, AZ 85004
Attn: Chairman of the Compensation Committee
If to Trujillo: Gary L. Trujillo
400 E. Van Buren, Suite 400
Phoenix, AZ 85004
Notices delivered personally will be deemed communicated as of actual
receipt, notices by fax shall be deemed delivered when such notices are faxed to
recipient's fax number and notices by mail shall be deemed delivered when
mailed.
13. ENTIRE AGREEMENT. This Agreement and the agreements contemplated
hereby constitute the entire agreement of the parties regarding the subject
matter hereof, and supersede all prior agreements and understanding, both
written and oral, among the parties, or any of them, with respect to the subject
matter hereof.
14. SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future laws effective during
this Agreement, such provision will be fully severable and this Agreement will
be construed and enforced as if such illegal, invalid or unenforceable provision
never comprised a part hereof; and the remaining provisions hereof will remain
in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance herefrom. Furthermore, in lieu of
such illegal, invalid or unenforceable provision, there will be added
automatically, as part of this Agreement, a provision as similar in its terms to
such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.
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15. GOVERNING LAW. To the extent permitted by applicable law, this
Agreement and the rights and obligations of the parties will be governed by and
construed and enforced exclusively in accordance with the substantive laws (but
not the rules governing conflicts of laws) of the State of Arizona and the State
of Arizona shall have exclusive jurisdiction regarding any legal actions
relating to this Agreement.
16. CAPTIONS. The captions in this Agreement are for convenience of
reference only and will not limit or otherwise affect any of the terms or
provisions hereof.
17. GENDER AND NUMBER. When the context requires, the gender of all
words used herein will include the masculine, feminine and neuter, and the
number of all words will include the singular and plural.
18. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which will be deemed an original and all of which will
constitute one and the same instrument.
19. ACKNOWLEDGMENT OF VENTURE CAPITAL AND OTHER INVESTMENT ACTIVITIES.
The Company acknowledges that Trujillo has engaged in venture capital and other
investment activities independent of Trujillo's employment with the Company. The
Company hereby agrees that Trujillo will continue to have the right to invest in
such activities while employed with the Company; provided, however that such
activities are not in direct competition with the Company and do not otherwise
conflict with the terms of Section 10 of this Agreement. Furthermore, the
Company acknowledges that Trujillo is a significant investor in and/or a member
of the board of directors for the following companies: Blue Cross & Blue Shield
of Arizona, Wells Fargo & Co. AZ (Advisory Board), Corella Electric Wire & Cable
Inc., Corella-Trujillo Group, Southwest Harvard Group Companies, JOSE LLC, SERI
Construction LLC, SERI/HighPoint LLC, World Wide Wireless LLC, and Pennoyer
Asset Management.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.
COMPANY:
QUEPASA.COM, INC.,
a Nevada corporation
By: /s/ Jerry J. Colangelo
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Name: Jerry J. Colangelo
Chairman of the Compensation Committee
TRUJILLO:
/s/ Gary L. Trujillo
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Gary L. Trujillo
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