EXHIBIT 10.6
EMPLOYMENT AGREEMENT
THIS AGREEMENT is entered into by and between Stratasoft, Inc. a Texas corporation ("Company") and BOB HENNESSY ("Executive").
1. EMPLOYMENT. Company hereby, as of 9-7-95, 1995 ("effective date"), hereby employs Executive as its President and General Manager (or any other capacity that may be directed by Company) subject to the provisions hereof, and the Executive hereby accepts such employment upon such provisions.
2. DUTIES, RESPONSIBILITIES OF EXECUTIVE. Executive shall faithfully, on a full-time basis for at least eight (8) hours/day, Mondays through Fridays of each successive calendar month, but exclusive of holidays set by Company (he shall not while employed hereunder practice any profession except as an employee of Company or be engaged in any other business activity which is perceived by Company to interfere with the business of Company or with Executive's performance of his job duties, unless agreed to, in writing, by Company) function as Company's President and General Manager, and as Company may otherwise order and direct through its Board of Directors. The Executive will devote all of his time, energy, and skill during regular business hours, and other times if deemed necessary by Company, to such employment. Executive Manager of a business such as Company, e.g., he shall be responsible for the overall day-to-day operations of Company and shall be responsible for business planning, tactics and strategy for Company; he shall oversee hiring and termination of employees, and shall develop and implement plans for the marketing and sale of Company's products. Executive shall perform whatever tasks its Board of Directors may from time to time assign. Company has the right to order and direct every aspect of Executive's job performance. Executive shall prepare and provide to Company all reasonable reports and/or other documentation related to his job as required by Company.
3. COMPENSATION. Company shall compensate Executive as follows:
(a) A salary of $6,784.00 per month shall be paid to
Executive by Company according to Company's payroll
policies and procedures as determined by Company, at
its sole discretion, from time to time. In any
instance where Executive is employed by Company for
less than a full calendar month, such salary shall be
prorated as follows:
$81,408.00 X B = C
----------
A = number of working days in the year
B = actual number of days worked by
Executive in the partial period
C = amount of partial salary (gross)
Working days as used in this Employment Agreement
shall be deemed to mean Mondays through Fridays, but
excluding holidays or the like determined by Company.
Any calculations required to be made under this
Employment Agreement shall be made using the formulae
stated, when stated, and by the use of generally
accepted accounting principles, unless otherwise
stated herein.
This Employment Agreement is terminable at will by
either party and nothing contained herein shall ever
be deemed to mean that Executive is employed for any
given term or period of time.
(b) A bonus of 10% of the Company's gross profits shall
be paid, quarterly, for the first continuous eighteen
(18) months of Executive's employment with Company.
Such bonus shall be paid within forty-five (45) days
of the ending date of each successive respective
quarter for which the bonus is paid. If Executive is
employed less than a full successive quarter, such
bonus shall be paid on the number of days Executive
is actually employed during such partial quarter, by
the Company, and based on the Company's gross profits
for the entire calendar quarter prorated by the
number of days actually worked in the quarter in
accordance with the following formula:
Partial bonus = 10% X A X B
---
A = gross profits for the quarter
B = actual number of days worked by
Executive in the quarter
C = actual number of working days in the quarter
Such partial bonus shall be paid within forty-five
(45) days of the last day of the quarter for which
paid. "Gross profit" shall be deemed to mean total
revenues of the Company less inventory costs
(including freight charges) ancillary to such
inventory for the bonus period. Notwithstanding the
foregoing, should Executive be employed by Company
for less than the eighteen month bonus period but is
employed by Company for at least one hundred eighty
(180) days of such bonus period, the bonus provided
in this paragraph 3.(b) shall be calculated as if
Executive had been employed for the full eighteen
(18) months, based on gross profits for such eighteen
(18) month period and paid quarterly as above
(c) In addition to the bonus described above, an
additional bonus based on net profits of the Company
for each successive calendar quarter, and/or portion
thereof, during which Executive is employed by
Company shall be paid to Executive by Company within
forty-five (45) days of the last day of each such
quarter or partial quarter for which paid, and shall
be calculated as ten percent (10%) of the Company's
net profit multiplied by its net profit margin. For
instance, if the Company's net profit for the quarter
is $50,000.00 and the net profit margin is 30%, the
bonus would be calculated according to the following
equation:
$50,000.00 X .3 X .1 = $1,500.00 ("the bonus")
Should Executive be employed by the Company for less
than a full quarter the bonus provided for in this
paragraph 3(c) would be calculated pro rata based on
the number of days in the quarter actually worked by
Executive divided by the total number of working days
in the quarter multiplied by "the bonus" and based on
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