EMPLOYMENT AGREEMENT
AGREEMENT, made as of October 15, 1997 by and between GENERAL CREDIT CORP., a New York corporation with its offices at 370 Lexington Avenue, Suite 2000, New York, New York 10017 (the "Company"), and DONG HYUN KANG, an individual currently residing at 223B Crescent Lane, Cliffside Park,
New Jersey 07010 (the "Employee").
The parties hereto, in consideration of the premises and mutual covenants herein contained, hereby agree as follows:
1. Employment: The Company hereby agrees to employ the Employee as the General Manager of Sales and the Employee hereby accepts such appointment on the terms and conditions hereinafter set forth.
2. Duties: The employee shall be General Manager of Sales in New York and New Jersey (the "Territory"). The Employee shall have the authority to hire and fire any sales or customer relations employees of the Company working at his site(s). The Employee shall be subject to reasonable direction of the President of the Company.
3. Company's Business: The Company is in the check factoring service business and is currently operating such business at 499 Seventh Avenue, North 704, New York, New York (the "Site"). It is the Company's plan to open up one additional site in the Territory in 1998 and one other site in the Territory in 1999, both of which targeting the Asian market. The Employee shall be in charge of operating and managing the day-to-day business at the three sites (the Site and the additional two new sites to be open in the Territory). In the event the Company wishes the Employee to manage more than three sites, then it shall be done only with the consent of the Employee. For each site, the Company shall provide, a sufficient number of uniformed and non-uniformed guards and armored and non-armored vehicles as requested by the Employee.
4. Company's Covenants and Warranties: The Company covenants and warrants that during the term of this Agreement:
(i) It will provide the Site and other sites the Employee are in charge of with the sufficient amount of capital at all times in order that the Employee may purchase any and all checks he wants to purchase on behalf of the Company. For the Site, the Company shall supply at least $1.5 million per day. Upon opening of other site(s), the amount of capital the Company is required to supply to the Employee per day shall be increased and fixed by and between the parties. On each Friday, the Employee shall provide the Company with an estimate of the monies required for purchasing checks for the following week. In the event the monies requested by the Employee for any week will be more than 110% of the monies provided by the Company in the immediately preceding week, then the Employee shall provide the Company with a two-week prior notice.
(ii) It will continue to operate a check factoring business at 499 Seventh Avenue, North 704, New York, New York with business hours from 9:30 a.m. to 6:30 p.m. from Monday through Friday;
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(iii) The Employee shall have the full authority to conduct the day-to-day business at the Site and two other sites in the Territory, including the decision to purchase any checks offered for sale; and
(iv) The fee collected by the Company for factoring a check shall not exceed the competitive market rate.
5. Employee's Covenants and Warranties: The Employee covenants and warrants that during the term of this Agreement he will not purchase any checks made payable to an individual without the prior consent of the Company.
6. Base Salary: During the term of this Agreement, the Employee shall receive from the Company a compensation at the rate of $2,500.00 per week, which shall be increased each year at the increment of 5% or CPI, whichever is greater,
7. Bonuses: In addition to the base salary set forth above, the Employee shall be entitled to receive the following bonuses from the Company:
(i) First Bonus: $30,000 per year if the Weekly Average Sales Amount (as hereinbelow defined) is equal to or greater than $2.1 million; and
(ii) Second Bonus: $50,000 per year if the Weekly Average Sales Amount is equal to or greater than $2.6 million; and
(iii) Third Bonus: $70,000 per year if the Weekly Average Sales Amount is equal to or greater than $3.1 million; and
(iv) Fourth Bonus: $90,000 per year if the Weekly Average Sales Amount is equal to or greater than $3.6 million.
(b) For the purpose of c ...