-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MQShXswvPylJ5XH04x9qG/GMWsX9pdRqec77QRlVmLEfob4Mj0cjALdYUdrN20rC JtjOx2TpxuuTkpsDBs2CmA== 0000897101-07-000876.txt : 20070424 0000897101-07-000876.hdr.sgml : 20070424 20070424090905 ACCESSION NUMBER: 0000897101-07-000876 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070416 ITEM INFORMATION: Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070424 DATE AS OF CHANGE: 20070424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EAUTOCLAIMS, INC CENTRAL INDEX KEY: 0001034694 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 954583945 STATE OF INCORPORATION: NV FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23903 FILM NUMBER: 07783137 BUSINESS ADDRESS: STREET 1: 110 EAST DOUGLAS RD CITY: OLDSMAR STATE: FL ZIP: 34677 BUSINESS PHONE: 8137491020 MAIL ADDRESS: STREET 1: 110 EAST DOUGLAS RD CITY: OLDSMAR STATE: FL ZIP: 34677 FORMER COMPANY: FORMER CONFORMED NAME: EAUTOCLAIMS COM INC DATE OF NAME CHANGE: 20000706 FORMER COMPANY: FORMER CONFORMED NAME: TRANSFORMATION PROCESSING INC DATE OF NAME CHANGE: 19980306 8-K 1 eauto071792_8k.htm FORM 8-K DATED APRIL 16, 2007 eAutoclaims, Inc. Form 8-K dated April 16, 2007
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


FORM 8-K


 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): April 16, 2007

 

Commission File Number 0-23903

 


eAUTOCLAIMS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

95-4583945

(State or other jurisdiction of
incorporation or organization)

(IRS Employer
Identification No.)

 

110 East Douglas Road, Oldsmar, Florida

34677

(Address of principal executive offices)

(Zip Code)

 

(813) 749-1020

(Registrant’s telephone number)

 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 
 






Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On April 16, 2007 the Company entered into employment agreements with its Chief Executive Officer, Mr. Jeffrey Dickson, and its Chief Financial Officer, Mr. Larry Colton. Under the terms of the agreement with Mr. Dickson, which has a term of eighteen months, he will receive a base salary of $150,000, a monthly auto allowance of $750 and a monthly personal allowance of $1,000. He may receive bonus compensation in an amount approved by the Company’s Board of Directors based on performance criteria as may be established by the Compensation Committee. In the event of termination for any reason other than for “cause”, death or disability, or voluntary termination, Mr. Dickson will receive a cash lump sum equal to one times his then current base salary.

 

Under the terms of the agreement with Mr. Colton, which has a term of twenty-four months, he will receive a base salary of $112,500 and a monthly auto allowance of $400. He may receive bonus compensation in an amount approved by the Company’s Board of Directors based on recommendations of the Company’s Chief Executive Officer considering the performance criteria as may be established by the Board of Directors. If the Company elects not to renew this agreement, Mr. Colton will be entitled to receive Severance Pay for a period of nine months, payable in regular installments in accordance with the Company’s general payroll practices for salaried employees.

 

On April 16, 2007 the Company announced that David Mattingly, its Chief Information Officer, would not be renewing his current employment contract that expires on April 30, 2007. Mr. Mattingly has decided to relocate to pursue other IT opportunities.

 

The Company also announced that, effective May 1, 2007 its current Vice President of Information Technology, Don Thomas, will serve as the new Chief Information Officer of eAutoclaims, Inc. Mr. Thomas joined eAutoclaims, Inc. on January 8, 2007. Prior to that Mr. Thomas spent the previous nine years at Fidelity National Information Services where he held a variety of positions in the Information Technology field, the most recent being Assistant Vice President of Technology. Mr. Thomas earned a BS in Computer Science from UCLA. The Company has entered into an employment agreement with Mr. Thomas which has a term of twenty-seven months. Under the terms of the agreement, Mr. Thomas will receive a base salary of $132,000 and a monthly auto allowance of $400. He may receive bonus compensation in an amount as approved by the Company’s Board of Directors or the Chief Executive Officer in its sole discretion based upon the performance criteria as may be established by the Board of Directors or the Chief Executive Officer. If the Company elects not to renew this agreement, Mr. Thomas will be entitled to receive Severance Pay for a period of six months, payable in regular installments in accordance with the Company’s general payroll practices for salaried employees.

 

Item 9.01

Financial Statements and Exhibits

 

 

Exhibit Number Description

 

 

 

Employment Agreement Jeffrey Dickson

 

Employment Agreement Larry Colton

 

Employment Agreement Don Thomas

 

 





SIGNATURE

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Date:  April 23, 2007

 

eAUTOCLAIMS, INC.

 

 

 

 

 

 

By:

  /s/ Jeffrey Dickson

 

 

Print Name:

  Jeffrey Dickson

 

 

Title:

  CEO and President

 

 


EX-99.1 2 eautoclaims071792_ex99-1.htm EMPLOYMENT AGREEMENT JEFFREY DICKSON Exhibit 99.1 to eAutoclaims, Inc. Form 8-K Dated April 16, 2007

Exhibit 99.1

EMPLOYMENT AGREEMENT

 

This Agreement is effective as of the 1st day of April, 2007 (“Agreement”) and is by and between EAUTOCLAIMS. INC., a Nevada corporation (“Company”), and Jeffrey D. Dickson/Interloc, a resident of the State of Florida (“Executive'').

 

WHEREAS, the Company desires to employ the Executive and the Executive desires to be employed by the Company pursuant to terms and conditions; and

 

WHEREAS, the Company and the Executive wish to enter into an employment agreement, covering the continued employment of the Executive by the Company.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth in this Agreement, and intending to be legally bound, the Company and the Executive agree as follows:

 

 

1.

Term of Employment

 

(a)          Offer/Acceptance/Effective Date. The Company hereby offers employment to the Executive, and the Executive hereby accepts employment with the Company, subject to the terms and conditions set forth in this Agreement.

 

(b)         Term: The term of this Agreement shall commence on the date first indicated above and shall remain in effect for one year and six months (18 months) thereafter (Term”).

 

 

2.

Duties.

 

(a)          General Duties. The Executive shall serve as the President and Chief Executive Officer of the Company with duties and responsibilities that are customary for such executives including, without limitation, the overall management, leadership and future vision of the Company subject to the approval and ratification of such other duties from time to time by the Board of Directors of the Company.

 

(b)         Best Efforts. The Executive covenants to use his best efforts to perform his duties and discharge his responsibilities pursuant to this Agreement in a competent, diligent and faithful manner.

 

(c)          Devotion of Time. The Executive shall devote substantially all of his time, attention and energies during normal business hours to the Company's affairs (exclusive of periods of sickness and disability and of such normal holiday and vacation periods as have been established by the Company). It is understood the Executive has personal business that from time to time may require his attention during business hours, such activities shall not be of competing interests to the company and shall not be a breach of his employment agreement.

 

 

 

 

 

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3.

Compensation and Expenses.

 

(a)          Base Salary. For the services of the Executive to be rendered by him under this Agreement, the Company shall pay the Executive an annual base salary (“Base Salary”) of One Hundred Fifty Thousand Dollars ($150,000). If the Company is able to generate positive cumulative EBITDA (which excludes non-cash compensatory and equity charges under GAAP) of greater than $50,000 in any three (3) consecutive months, the Company will increase the Base Salary to Two Hundred Thousand Dollars ($200,000).

 

The Base Salary shall be prorated for any period of less than a full calendar year. The Company shall pay the Executive his Base Salary in equal installments no less frequently than semi-monthly.

 

(b)         Base Salary Adjustment. The Base Salary may not be decreased hereunder during the Term of this Agreement, but may be increased upon review by, and at the sole discretion of, the Company's Board of Directors.

 

(c)          Bonus. Executive shall be entitled to receive quarterly bonus compensation in an amount as approved by the Company's Board of Directors based upon the performance criteria as may be established by the Compensation committee from time to time. Such bonuses may be paid in cash or issued in shares of the Company's common stock as elected by Executive and will be advanced monthly. At no time may the bonus be less than 3% of the Company's EBITDA as computed under GAAP.

 

(d)          Option Bonus: The Executive shall be entitled to receive an option to purchase not less than 25,000 shares of the Company’s common stock, exercisable at the fair market price, for each month the Company has net income of a minimum $10,000, as computed in accordance with GAAP (the “Bonus Options”). The Bonus Options shall vest during the remaining term of the Executives employment Agreement, and will expire not less than five (5) years from the date of grant.

 

(e)          Expenses. In addition to any compensation received pursuant to this Section 3, the Company will pay on behalf of the Executive or will reimburse the Executive for all reasonable expenses incurred in connection with the performance of his duties under this Agreement, including but not limited to expenses for travel, education, seminars, trade shows, entertainment, and professional dues, provided that the Executive properly accounts for such expenses to the Company in accordance with the Company's practices. Such advance payments and/or reimbursements shall include travel, lodging and food costs for the Executive's immediate family to the extent they accompany the Executive on business related travel.

 

 

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(f)          Additional Equity Based Incentive Compensation. The Executive shall be entitled to additional annual equity-based incentive compensation as established by the Compensation Committee of the Board of Directors.

 

(g)          Personal Expense Allowance. In addition to the reimbursement of expenses under subsection (d) above, the Company shall pay the Executive a personal expense allowance of not less than $1,000 per month during the term of this Agreement.

 

 

4.

Benefits.

 

(a)          Vacation and Holidays. For each calendar year during the Term during which the Executive is employed, the Executive shall be entitled to vacation (which shall accrue and vest, except as may be hereinafter provided to the contrary, on each January lst thereof) without loss of compensation or other benefits to which he is entitled under this Agreement, as follows:

 

 

(i)

For the remainder of calendar year 2007, 20 work days;

 

 

(ii)

For calendar year 2008, 20 work days.

 

The Executive shall carry-over any vacation time earned in his previous employment agreement. The Executive will also be entitled to the paid holidays set forth in the Company’s policies.

 

If the Executive is unable to take all of his vacation days during a year for which he becomes vested therein, then the Executive at his sole option, may elect to (x) carry over any unused vacation to the next calendar year to be used solely in that next year or (y) receive an appropriate pro rata portion of his Base Salary corresponding to the year in which vacation days vested.

 

The Executive shall take his vacation at such times as the Executive may select and the affairs of the Company or any of its subsidiaries or affiliates may permit.

 

(b)         Employee Benefit Programs. In addition to the compensation to which the Executive is entitled pursuant to the provisions of Section 3 hereof, during the Term, the Executive will be entitled to participate in any stock option plan, stock purchase plan, pension or retirement plan, and insurance or other employee benefit plan that is maintained at that time by the Company for its employees, including any programs of life, disability, basic medical and dental, and supplemental medical and dental insurance.

 

(c)          Automobile Allowance. During the Term of this Agreement, the Company shall pay the Executive an additional $750 per month as an automobile allowance to be applied to any automobile expense incurred by the Executive, which amount may be increased but not decreased by the Board of Directors.

 

 

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(d)         Annual Physical. The Executive agrees to have an annual physical examination performed by a physician of his choice during each year of this Agreement. The Company shall reimburse Executive for the costs of his annual physical examination.

 

 

5.

Termination.

 

(a)          Termination by Company for Cause. The Company may only terminate the Executive’s employment pursuant to this Agreement before expiration of the Term, for cause only upon fulfillment of the events described in subparagraph 5(a)(i) below. Upon any such termination for cause, the Executive shall have no right to other compensation, bonus or reimbursement under Section 3 or to participate in any employee benefit programs or other benefits to which he may be entitled under Section 4 for any period subsequent to the effective date of termination; provided, however, that any vested but unexercised options shall remain in effect following any such termination but all unvested options shall expire.

 

For purposes of this Agreement, the term “cause” shall mean only:

 

(i) the Executive’s conviction of a crime involving fraud, theft or misappropriation involving the Company or any of its subsidiaries or affiliates and all appeals with respect thereto have been extinguished or abandoned by the Executive;

 

(b)         Death or Disability. This Agreement and the Company's obligations hereunder will terminate upon the death or disability of the Executive. For purposes of this Section 5(b), “disability” shall mean that for a period of six (6) months in any twelve-month period, the Executive is incapable of substantially fulfilling the essential functions of the Executive’s duties set forth in this Agreement because of physical, mental or emotional incapacity resulting from injury, sickness or disease as determined by an independent physician mutually acceptable to the Company and the Executive. Upon any termination of this Agreement due to death or disability, the Company will promptly pay the Executive or his designated beneficiaries, as the case may be, any accrued but unpaid then current Base Salary (which may include any accrued but unused vacation time) through the date of such termination of employment plus any other compensation that may be due and unpaid plus a lump-sum payment equal to 2 times the then current Base Salary. Any unexercised options will remain in effect in accordance with such options terms.

 

(c)          Voluntary Termination. Prior to any other termination of this Agreement, the Executive may, on ninety-day (90) prior written notice to the Company given at any time during the Term, terminate his employment with the Company. Upon any such termination with proper notice, the Company shall promptly pay the Executive any accrued but unpaid Base Salary through the date of such termination of employment (not including any accrued but unused vacation time) and the Executive shall have no

 

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further right to other compensation, bonus or reimbursement under Section 3 or to participate in any employee benefit programs or other benefits to which he may be entitled under Section 4 for any period subsequent to the effective date of such termination; provided, however, that any vested but unexercised options shall remain in effect following any such termination (subject to the provisions of the applicable option agreement) and all unvested options shall immediately vest upon such termination.

 

(d)         Termination for any reason other than for “Cause”, Death or Disability or Voluntary Termination. In the event the Executive’s employment is terminated for any reason other than (i) for “Cause” (paragraph 5(a), (ii) Death or Disability (paragraph 5(b), (iii) Voluntary Termination by Executive (paragraph 5(c)), then the Company shall be obligated to immediately pay the Executive a cash lump sum equal to 1 times the then current Base Salary and any vested but unexercised options shall remain in effect and all unvested options shall immediately vest upon the effective date of termination pursuant to this paragraph.

 

 

6.

Restrictive Covenants.

 

(a)          Competition with the Company. The Executive covenants and agrees that during the Term, and for a period of twenty-four (24) months after termination of this Agreement, the Executive shall not, without the prior written consent of the Company, directly or indirectly (whether as a sole proprietor, partner, member, stockholder, director, officer, employee or in any other capacity as principal or agent) compete with the Company. Notwithstanding the foregoing, if the Executive is terminated pursuant to Section 5(d) or termination occurs for any reason other than for “Cause” (including voluntary termination by Executive) after a Change of Control as described in Section 7, the 6-month non-compete provision set forth in this Section 6(a) shall be released and be of no further force or effect, unless the Executive elects to have the non-competition covenant take effect, in which case the Company shall pay the Executive his Base Salary in 12 equal month payments. Notwithstanding this restriction, Executive shall be entitled to invest in stock of other competing public companies so long as his ownership is less than 5% of such company’s outstanding shares.

 

(b)         Disclosure of Confidential Information. (i) The Executive acknowledges that during his employment he will gain and have access to confidential information regarding the Company and its subsidiaries and affiliates. The Executive acknowledges that such confidential information as acquired and used by the Company or any of its subsidiaries or affiliates constitutes a special, valuable and unique asset in which the Company or its subsidiaries or affiliates, as the case may be, holds a legitimate business interest. All records, files, materials and confidential information (the “Confidential Information”) obtained by the Executive in the course of his employment with the Company shall be deemed confidential and proprietary and shall remain the exclusive property of the Company or its subsidiaries or affiliates, as the case may be. The

 

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Executive shall not, except in connection with and as required by his performance of his duties under this Agreement, (i) use any Confidential Information for his own benefit or the benefit of any person or entity with which he may be associated other than the Company; or (ii) disclose any Confidential Information to any person, firm, corporation, association or other entity for any reason or purpose whatsoever without the prior written consent of the Board of Directors of the Company, unless such information previously shall have become public knowledge through no action by or omission of the Executive.

 

(ii)   If the Executive is requested or becomes legally compelled (by oral questions, interrogatories, requests for information or documents, subpoena, civil or criminal investigative demand, or similar process) or is required by a regulatory body to make any disclosure that is prohibited or otherwise constrained by this Agreement, the Executive will proved the Company with prompt notice of such request so that the Company may seek an appropriate protective order or other appropriate remedy. Subject to the foregoing, the Executive may furnish that portion of the Confidential Information that, in the written opinion of its counsel reasonably acceptable to the Company, the Executive is legally compelled or is otherwise required to disclose or else stand liable for contempt or suffer other material censure or material penalty.

 

(c)          Subversion, Disruption or Interference. At no time during the Term of this Agreement shall the Executive, directly or indirectly, interfere, induce, influence, combine or conspire with, or attempt to induce, influence, combine or conspire with, any of the employees of, or consultants to, the Company to terminate their relationship with the Company or compete with or ally against the Company or any of its subsidiaries or affiliates in the business in which the Company or any of its subsidiaries or affiliates is then engaged in. The Executive shall be permitted to enter into outside business interests with employees and or consultants, provided it shall not have an adverse effect or be of a competitive nature to the company.

 

(d)         Enforcement of Restrictions. The parties hereby agree that any violation by Executive of the covenants contained in this Section 6 will likely cause irreparable damage to the Company or its subsidiaries and affiliates and may be restrained by process issued out of a court of competent jurisdiction, in addition to any other remedies provided by law.

 

 

7.

Change of Control.

 

(a)         For purposes of this Agreement, “Change of Control” means:

 

(i)   the closing of any merger, combination, consolidation or similar business transaction involving the Company in which the holders of a majority of the shares of the common stock of the Company immediately prior to such closing are not the holders of a majority of the ordinary voting securities of the surviving entity in such transaction; or

 

 

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(ii)        the closing of any sale by the Company of all or substantially all of its assets to an acquiring entity in which the holders of a majority of the shares of common stock of the Company immediately prior to such closing are not the holders of a majority of the ordinary voting securities of the acquiring entity; or

 

(iii)        the closing of any sale by the holders of common stock of the Company of an amount of common stock that equals or exceeds a majority of the shares of common stock of the Company immediately prior to such closing to an entity in which the holders of a majority of the shares of the common stock of the Company immediately prior to such closing are not the holders of a majority of the ordinary voting securities; or

 

(iv)        a change in the composition of the Board of Directors of the Company such that the current members of the Board of Directors are no longer the majority in number of the Board of Directors.

 

(v)         An Event of Default is declared under the Securities Purchase Agreement, Registration Rights Agreement, Certificate of Designation of Series A Preferred Stock or other related agreements with the holders of the Company’s Series A Preferred Stock.

 

(vi)        Any holder of the Series A Preferred Stock elects to convert the Series A Preferred Stock into shares of the Company’s common stock, which results in the holders of the Series A Preferred Stock (or their affiliates) owning greater than fifteen percent (15%) of the outstanding number of shares of the Company’s common stock.

 

(b)         If, during the Term, the Executive’s employment is terminated by the Company after a Change of Control, the Executive shall be entitled to promptly receive, subject to the provisions of subsection (c) below, a lump-sum payment equal to 2.99 times the Executive's current Base Salary in addition to any other compensation that may be due to and owing to the Executive under Section 3 hereof and all stock options issued to Executive shall immediately vest and be exercisable in full at any time over the remaining term of the stock options. In addition, in the event of a Change of Control, the Executive shall be released from the non-competition provisions of Section 6(a) and such restrictive covenants against competition shall be of no further force or effect.

 

(c)         If, during the Term, a Change of Control event occurs and the Executive voluntarily terminates pursuant to Section 5(c), the Executive shall be immediately and automatically released from the non-competition provisions of Section 6(a) and this non-compete restrictive covenant shall be of no further force or effect.

 

(d)         The amounts payable to the Executive under any other compensation arrangement maintained by the Company which become payable after payment of the lump-sum provided for in subsection (b) above upon or as a result of the exercise by Executive of rights which are contingent on a Change of Control (and would

 

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be considered a “parachute payment” under Internal Revenue Code 280G and regulations thereunder), shall be reduced to the extent necessary so that such amounts, when added to such lumps-sum, do not exceed 2.99 times the Executive's Base Salary (as computed in accordance with provisions of the Internal Revenue Code of 1986, as amended and any regulations promulgated thereunder) for determining whether the Executive has received an excess parachute payment. Any such excess amount shall be deferred and paid in the next tax year.

 

(e)          In the event of a proposed Change of Control, the Company will allow the Executive to participate in all meetings and negotiations related thereto.

 

8.           Indemnification and Insurance. To the maximum extent permitted by law and the Company’s by-laws, the Company shall indemnify the Executive with respect to the performance of his duties under this Agreement. The Company will maintain directors and officers liability insurance, and agrees to advance to the Executive the costs of defense of any lawsuit against him with respect to his service to the Company under this Agreement.

 

9.           Assignability. The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign shall acquire all or substantially all of the assets and business of the Company. The Executive’s rights and obligations hereunder may not be assigned or alienated and any attempt to do so by the Executive will be void.

 

10.        Severability. If any provision of this Agreement is deemed to be invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties to the other; provided, however, that the provisions of Section 6 may be modified and enforced by a court in any legal or equitable action as necessary to comply with applicable law as determined by the court. The remaining provisions of this Agreement shall be valid and binding.

 

11.        Notice. Notices given pursuant to the provisions of this Agreement shall be sent by certified mail, postage prepaid, or by overnight courier, or telecopier, to the following address:

 

 

To the Company:

eAutoclaims, Inc.

 

 

110 East Douglas Road

 

 

Oldsmar, FL 34677

 

 

 

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To the Executive:

Jeffrey D. Dickson

 

 

101 Homeport Drive

 

 

Palm Harbor, FL 34683

 

Either party may, from time to time, designate any other address to which any such notice to it or he shall be sent. Any such notice shall be deemed to have been delivered upon the earlier of actual receipt or four days after deposit in the mail, if by certified mail.

 

 

12.

Miscellaneous.

 

(a)         Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal, substantive laws of the State of Florida without giving effect to the conflict of laws rules thereof.

 

(b)         Waiver/Amendment. The waiver by any party to this Agreement of a breach of any provision hereof by any other party shall not be construed as a waiver of any subsequent breach by any party. No provision of this Agreement may be terminated, amended, supplemented, waived or modified other than by an instrument in writing signed by the party against whom the enforcement of the termination, amendment, supplement, waiver or modification is sought.

 

(c)          Attorney's Fees. In the event any legal or equitable action is commenced to enforce the terms and conditions hereof, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and expenses.

 

(d)         Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and replaces and supersedes any prior agreements or understandings.

 

(e)          Counterparts. This Agreement may be executed in counterparts, all of which shall constitute one and the same instrument.

 

(f)          Attorney Review. The parties acknowledge that each has had an opportunity to retain an attorney to review the terms and conditions of this Agreement. No provision hereof shall be interpreted against the interests of one party solely because such provision was drafted by such party or by the attorney for such party.

 

(g)         Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach of this Agreement, shall be settled by arbitration in accordance with the rules of the American Arbitration Association conducted in a location selected by the Company. A judgment of a court having jurisdiction may be entered upon the arbitrator's award.

 

 

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IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day and year first above written.

 

COMPANY:

 

EAUTOCLAIMS.COM, INC.

 

By:

 

 

 

Name:

Austin Lewis

 

 

Its:

Chairman

 

 

EXECUTIVE:

 

Jeffrey D. Dickson

 

 

 

 







 

 

 

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EX-99.2 3 eautoclaims071792_ex99-2.htm EMPLOYMENT AGREEMENT LARRY COLTON Exhibit 99.2 to eAutoclaims, Inc. Form 8-K Dated April 16, 2007

Exhibit 99.2

EMPLOYMENT AGREEMENT

 

This Agreement is effective as of the 1st of March 2007 (“Agreement”) and is by and between EAUTOCLAIMS, INC., a Nevada corporation (“Company”), and, Larry Colton, a resident of the State of Florida (“Executive”).

 

WITNESSETH:

 

WHEREAS, the Company desires to employ Executive in accordance with the terms and conditions contained in this Agreement and to ensure the availability of the Executive’s services to the Company; and

 

WHEREAS, the Executive desires to accept such employment and render his services in accordance with the terms and conditions contained in this Agreement; and which supercedes the Change in Control and Termination Agreement dated April 9, 2001; and the employment agreement Dated May 1st, 2005 and

 

WHEREAS, the Executive and the Company desire to enter into this Agreement which will fully recognize the contributions of the Executive and assure harmonious management of the Company’s affairs.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth in this Agreement, and intending to be legally bound, the Company and the Executive agree as follows:

 

 

1.

Term of Employment

 

(a)         Offer/Acceptance/Effective Date. The Company hereby offers employment to the Executive and the Executive hereby accepts employment subject to the terms and conditions set forth in this Agreement.

 

(b)         Term. The term of this Agreement shall commence on the date first indicated above. The term of employment shall commence on March 1, 2007, and shall remain in effect for twenty-four (24) months; through February 28, 2009 (“Term”).

 

 

2.

Duties.

 

(a)            General Duties. The Executive shall serve as the Chief Financial Officer of the Company with duties and responsibilities that are customary for such executives plus such other responsibilities that are specifically assigned by the Chief Executive Officer of the Company with the approval or ratification by the Company’s board of directors.

 

(b)            Best Efforts. The Executive covenants to use his best efforts to perform his duties and discharge his responsibilities pursuant to this Agreement in a competent, diligent and faithful manner.

 

(c)            Devotion of Time. The Executive shall devote substantially all of his time, attention and energies during normal business hours to the Company's affairs (exclusive of periods of sickness and disability and of such normal holiday and vacation periods as have

 

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been established by the Company). Outside business opportunities may be pursued as long as those activities do not conflict with the business of the Company.

 

 

3.

Compensation and Expenses.

 

(a)         Base Salary. For the services of the Executive to be rendered by him under this Agreement, the Company will pay the Executive for each of the periods indicated below an annual base salary ("Base Salary") as follows:

 

 

(i)

From March 1, 2007 to February 28, 2008, the amount of $112,500;

 

 

(ii)

Automatic Adjustment to Base:

 

Company achieves positive EBITDA from recurring and normal operations of $1 in any month: Increase Base Salary to $125,000

 

 

(iii)

A salary review will be undertaken every three (3) months and the Base Salary may be adjusted upward but not downward depending on, among other factors, the financial condition of the Company, as approved by the board of directors.

 

The Company shall pay the Executive his Base Salary in equal installments no less frequently than on a monthly basis.

 

(b)        Bonus. Executive may receive bonus compensation in an amount as approved by the Company’s Board of Directors based upon the recommendations of the Company’s Chief Executive Officer considering the performance criteria as may be established by the Board of Directors from time to time. Such bonuses may be paid in cash or issued in shares of the Company’s common stock on such terms as approved by the Board of Directors. The Executive will also be entitled to participate in the "Executive Bonus Plan” as set forth by the Company and may elect to receive such bonuses in restricted stock at a value equal to 90% of the fair market price.

 

(c)         Expenses. In addition to any compensation received pursuant to Section 3, the Company will reimburse the Executive for all reasonable, ordinary or necessary travel, educational, seminar, trade shows, entertainment and miscellaneous expenses incurred in connection with the performance of his duties under this Agreement, provided that the Executive properly accounts for such expenses to the Company in accordance with the Company's practices and procedures.

 

(d)         Subsidiary and Affiliate Payments. In recognition of the fact that in the course of the performance of his duties hereunder, the Executive may provide substantial benefits to the Company's subsidiaries or affiliated companies, the Executive and the Company may at any time and from time to time agree that all or any portion of the compensation due the Executive hereunder may be paid directly to the Executive by one or more of the Company's subsidiaries or affiliated companies.

 

Page 2 of 7





(e)        Change in Control. For purposes of this Agreement, “Change in Control” means:

 

(1)         The closing of any merger, combination, consolidation or similar business transaction involving the Company in which the holders of Common Stock immediately prior to such closing are not the holders of a majority of the ordinary voting securities of the surviving person in such transaction (a “Business Combination”); or

 

(2)         The closing of any sale by the Company of all or substantially all of its assets to an acquiring person in which the holders of Common Stock immediately prior to such closing are not the holders of a majority of the ordinary voting securities of the acquiring person (an “Asset Sale”); or

 

(3)         The closing of any sale by the holders of Common Stock of an amount of Common Stock that equals or exceeds a majority of the shares of Common Stock immediately prior to such closing to a person in which the holders of the Common Stock immediately prior to such closing are not the holders of a majority of the ordinary voting securities (a “Stock Sales”); or

 

In the event of a Change in Control as defined in this section all the Executive’s unvested employee stock options will automatically vest and the Executive will have one year from his termination date to exercise all stock options issued to employee prior to his termination. Notwithstanding the previous sentence in no event can the options be exercised past the expiration date of the option.

 

The amounts payable to the Executive under any compensation arrangement maintained by the Company which become payable or vests (including acceleration of stock options) upon or as a result of the exercise by Executive of rights which are contingent on a Change in Control (and would be considered a "parachute payment" under Internal Revenue Code 280G and regulations thereunder), shall be reduced to the extent necessary so that such amounts, when added to such lumps-sum, do not exceed 2.99 times the Executive's Base Salary (as computed in accordance with provisions of the Internal Revenue Code of 1986, as amended and any regulations promulgated thereunder) for determining whether the Executive has received an excess parachute payment unless the Company otherwise obtains the requisite shareholder approval for an exemption as provided in Section 280G and the regulations thereunder. Any such excess amount shall be deferred and paid in the next tax year.

 

 

4.

Benefits.

 

(a)         Vacation. Paid vacation each year with salary, consistent with Company’s policy for all senior executive management employees.

 

The Executive shall carry-over any vacation time earned in his previous employment agreement. The Executive will also be entitled to the paid holidays set forth in the Company’s policies. If the Executive is unable to take all of his vacation days during a year for which he becomes vested therein, then the Executive at his sole option, may elect to (x) carry over any unused vacation to the next calendar year to be used solely in that next year or (y) receive an appropriate pro rata portion of his Base Salary corresponding to the year in which vacation days vested.

 

Page 3 of 7





 

The Executive shall take his vacation at such times as the Executive may select and the affairs of the Company or any of its subsidiaries or affiliates may permit.

 

 

(b)         Employee Benefit Programs. In addition to the compensation to which the Executive is entitled pursuant to the provisions of Section 3 hereof, during the Term the Executive will be entitled to participate in any stock option plan, stock purchase plan, pension or retirement plan, and insurance or other employee benefit plan that is maintained at that time by the Company for its employees, including any programs of life, disability, basic medical and dental, and supplemental medical and dental insurance. All applicable insurance coverage for spouse and family including all health and dental coverage shall also be covered as a benefit to Executive.

 

(c)         Automobile Allowance. During the term of this Agreement, the Company shall pay the Executive an additional $400 per month as an automobile allowance to be applied to any automobile expense incurred by the Executive.

 

 

5.

Termination.

 

(a)         Termination for Cause. The Company may terminate the Executive’s employment pursuant to this Agreement before expiration of the Term at any time for cause upon written notice. Such termination will become effective upon the giving of such notice. Upon any such termination for cause, the Executive shall have no right to compensation, bonus or reimbursement under Section 3 or to participate in any employee benefit programs or other benefits to which he may be entitled under Section 4 for any period subsequent to the effective date of termination; provided, further, that any vested but unexercised options shall be forfeited following any such termination.

 

(b)        For purposes of this Agreement, the term “Cause” shall be deemed to mean (i) the Executive’s breach of this Agreement; (ii) the failure or refusal of the Executive to reasonably perform the duties or obligations required of Executive provided Executive is given written notice which specifies the exact duties and obligations which Executive failed to fulfill and further provided Executive is provided a reasonable opportunity to respond and/or comply with the notice provisions; (iii) Executive’s gross neglect of the affairs of the Company or failure to adhere to any Company policy, if the Executive has been given a reasonable opportunity to comply with such policy or cure such gross neglect or failure to comply; (iv) the improper appropriation (or attempted appropriation) of a business opportunity of the Company, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of the Company; (v) the willful misappropriation (or attempted misappropriation) of any of the Company’s funds or property; (vi) the Executive's willful commission of any crime or an act of dishonesty, fraud or moral turpitude or Executive knowingly making false or misleading statements in connection with the employment based upon the findings of the Board of Directors; (vii) the Executive’s willful violation of any applicable material law, rule or regulation applicable to the Company or any of its affiliates based upon the findings of the Board of Directors, or (viii) the Executive’s conviction of, or entry of a guilty plea or plea of no contest with respect to, a felony, the equivalent thereof, or any other crime with respect to which imprisonment is a possible punishment (exclusive of motor vehicle offenses, including DUI). In

 

Page 4 of 7





the event termination for Cause, Executive shall forfeit his entire right, title and intent in and to any vested or unvested stock options held by Executive.

 

(c)         Non-Renewal of Contract If the Company elects not to renew this Agreement, the Employee shall be entitled to receive his then current Base Salary for a period of nine (9) months from the effective date of termination, payable in regular installments in accordance with the Company’s general payroll practices for salaried employees (“Severance Payment”). Additionally, all unvested employee stock options will automatically vest and the Executive will have one year from termination date to exercise all stock options. Notwithstanding the previous sentence in no event may the options be exercised past the original expiration date of the stock options. Receipt of the Severance Payment is contingent upon Executive executing and adhering to a release of all employment claims in a form acceptable to the Company. The Company shall have no further obligations hereunder or otherwise with respect to Executive’s employment from and after the termination date.

 

(d)         Death or Disability. This Agreement and the Company's obligations hereunder will terminate upon the death or disability of the Executive. For purposes of this Section 5(b), "disability" shall mean that for a period of six (6) months in any twelve-month period, the Executive is incapable of substantially fulfilling the duties set forth in this Agreement because of physical, mental or emotional incapacity resulting from injury, sickness or disease as determined by an independent physician mutually acceptable to the Company and the Executive. Upon any termination of this Agreement due to death or disability, the Company will pay the Executive or his legal representative, as the case may be, any accrued but unpaid Base Salary (which may include any accrued but unused vacation time) through the date of such termination of employment plus any other compensation that may be due and unpaid. Any vested but unexercised options shall remain in effect following any termination by death or disability.

 

(e)         Voluntary Termination. Prior to any other termination of this Agreement, the Executive may, on forty-five (45) days’ prior written notice to the Company given at any time during the Term, terminate his employment with the Company. Upon any such termination with proper notice, the Company shall pay the Executive any accrued but unpaid Base Salary through the date of such effective termination of employment (including any accrued but unused vacation time) and the Executive shall have no further right to compensation, bonus or reimbursement under Section 3 or to participate in any employee benefit programs or other benefits to which he may be entitled under Section 4 for any period subsequent to the effective date of such termination; provided, however, that any vested but unexercised options shall remain in effect following any such termination.

 

 

6.

Restrictive Covenants.

 

(a)         Competition with the Company. The Executive covenants and agrees that during the Term of this Agreement and for a period of twelve (12) months after termination of this Agreement, the Executive shall not, without the prior written consent of the Company, directly or indirectly (whether as a sole proprietor, partner, member, stockholder, director, officer, employee or in any other capacity as principal or agent) compete with the Company. Notwithstanding this restriction, Executive shall be entitled to invest in stock of other competing public companies so long as his ownership is less than 5% of such company’s outstanding shares.

 

Page 5 of 7





(b)         Disclosure of Confidential Information. The Executive acknowledges that during his employment he will gain and have access to confidential information regarding the Company and its subsidiaries and affiliates. The Executive acknowledges that such confidential information as acquired and used by the Company or any of its subsidiaries or affiliates constitutes a special, valuable and unique asset in which the Company or its subsidiaries or affiliates, as the case may be, holds a legitimate business interest. All records, files, materials and confidential information (the "Confidential Information") obtained by the Executive in the course of his employment with the Company shall be deemed confidential and proprietary and shall remain the exclusive property of the Company or its subsidiaries or affiliates, as the case may be. The Executive shall not, except in connection with and as required by his performance of his duties under this Agreement, (i) use any Confidential Information for his own benefit or the benefit of any person or entity with which he may be associated other than the Company; or (ii) disclose any Confidential Information to any person, firm, corporation, association or other entity for any reason or purpose whatsoever without the prior written consent of the Board of Directors of the Company, unless such information previously shall have become public knowledge through no action by or omission of the Executive.

 

(c)         Subversion, Disruption or Interference. At no time during the term of this Agreement and for two (2) years after termination shall the Executive, directly or indirectly, interfere, induce, influence, combine or conspire with, or attempt to induce, influence, combine or conspire with customers, vendors, strategic alliance partners, automobile repaid facilities or with any of the employees of, or consultants to, the Company to terminate their relationship with the Company or compete with or ally against the Company or any of its subsidiaries or affiliates in the business in which the Company or any of its subsidiaries or affiliates is then engaged in.

 

(d)        Enforcement of Restrictions. The parties hereby agree that any violation by Executive of the covenants contained in this Section 6 will likely cause irreparable damage to the Company or its subsidiaries and affiliates and may be restrained by injunction, temporary restraining order or other legal process issued out of a court of competent jurisdiction, in addition to any other remedies provided by law.

 

7.         Assignability.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign shall acquire all or substantially all of the assets and business of the Company. The Executive’s rights and obligations hereunder may not be assigned or alienated (except as provided in this agreement) and any attempt to do so by the Executive will be void.

 

8.         Severability. If any provision of this Agreement is deemed to be invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties to the other; provided, however, that the provisions of Section 6 may be modified and enforced by a court in any legal or equitable action as necessary to comply with applicable law as determined by the court. The remaining provisions of this Agreement shall be valid and binding.

 

Page 6 of 7





 

9.

Miscellaneous.

 

(a)        Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal, substantive laws of the State of Florida without giving effect to the conflict of laws rules thereof. Venue shall be Pinellas County, Florida.

 

(b)         Waiver/Amendment. The waiver by any party to this Agreement of a breach of any provision hereof by any other party shall not be construed as a waiver of any subsequent breach by any party. No provision of this Agreement may be terminated, amended, supplemented, waived or modified other than by an instrument in writing signed by the party against whom the enforcement of the termination, amendment, supplement, waiver or modification is sought.

 

(c)         Attorney's Fees. In the event any legal or equitable action is commenced to enforce the terms and conditions hereof, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and expenses.

 

(d)         Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and replaces and supersedes any prior agreements or understandings.

 

(e)         Counterparts. This Agreement may be executed in counterparts, all of which shall constitute one and the same instrument.

 

(f)          Facsimile.        A facsimile copy of this agreement and any signatures hereon shall be considered for all purposes as an original.

 

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day and year first above written.

 

COMPANY:

 

EAUTOCLAIMS, INC.

 

By:

 

 

 

Its:

 

 

 

EXECUTIVE:

 

 

 

 

 

 

 

 

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EX-99.3 4 eautoclaims071792_ex99-3.htm EMPLOYMENT AGREEMENT DON THOMAS Exhibit 99.3 to eAutoclaims, Inc. Form 8-K Dated April 16, 2007

Exhibit 99.3

EMPLOYMENT AGREEMENT

 

This Agreement is effective as of the 8th of January 2007 (“Agreement”) and is by and between EAUTOCLAIMS, INC., a Nevada corporation (“Company”), and, Donald Thomas, a resident of the State of Florida (“Executive”).

 

WITNESSETH:

 

WHEREAS, the Company desires to employ Executive in accordance with the terms and conditions contained in this Agreement and to ensure the availability of the Executive’s services to the Company; and

 

WHEREAS, the Executive desires to accept such employment and render his services in accordance with the terms and conditions contained in this Agreement; and the employment agreement Dated January 8th, 2007.

 

WHEREAS, the Executive and the Company desire to enter into this Agreement, which will fully recognize the contributions of the Executive and assure harmonious management of the Company’s affairs.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth in this Agreement, and intending to be legally bound, the Company and the Executive agree as follows:

 

 

1.

Term of Employment

 

(a)         Offer/Acceptance/Effective Date.  The Company hereby offers employment to the Executive and the Executive hereby accepts employment subject to the terms and conditions set forth in this Agreement.

 

(b)         Term. The term of this Agreement shall commence on the date first indicated above. The term of employment shall commence on January 8th, 2007, and shall remain in effect for twenty-seven (27) months; through April 30, 2009 (“Term”).

 

 

2.

Duties.

 

(a)          General Duties. The Executive shall serve as the Vice President of Information Technology of the Company with duties and responsibilities that are customary for such executives plus such other responsibilities that are specifically assigned by the Chief Executive Officer of the Company.

 

(b)          Best Efforts. The Executive covenants to use his best efforts to perform his duties and discharge his responsibilities pursuant to this Agreement in a competent, diligent and faithful manner.

 

(c)         Devotion of Time. The Executive shall devote substantially all of his time, attention and energies during normal business hours to the Company’s affairs (exclusive of periods of sickness and disability and of such normal holiday and vacation periods as have been established by the Company). Outside business opportunities may be pursued as long as those activities do not conflict with eAutoclaims.

 

Page 1 of 7





 

3.

Compensation and Expenses.

 

(a)         Base Salary. For the services of the Executive to be rendered by him under this Agreement, the Company will pay the Executive for each of the periods indicated below an annual base salary (“Base Salary”) as follows:

 

 

(i)

From January 8th, 2007 to January 8th, 2008, the amount of $110,000;

 

 

(ii)

From January 9th, 2008 to April 30, 2009, the amount of $125,000;

 

The Company shall pay the Executive his Base Salary in equal installments no less frequently than on a monthly basis.

 

(b)         Base Salary Adjustment. The Base Salary may not be decreased hereunder during the term of this Agreement, but may be increased upon review by, and at the sole discretion of, the Company’s Board of Directors or the Chief Executive Officer.

 

In the event the Executive is promoted to the position of CIO, the following annual base salary (“Base Salary”) will apply as follows:

 

 

(iii)

From promotion date to January 8th, 2008, the amount of $132,000;

 

 

(iv)

From January 9th, 2008 to April 30, 2009, the amount of $145,000;

 

(c)        Bonus. Executive may receive bonus compensation in an amount as approved by the Company’s Board of Directors or the Chief Executive Officer in its sole discretion based upon the performance criteria as may be established by the Board of Directors or the Chief Executive Officer from time to time. Such bonuses may be paid in cash or issued in shares of the Company’s common stock on such terms as approved by the Board of Directors or the Chief Executive Officer. The Executive will also be entitled to participate in the “Sr. Management Bonus Plan” as set forth by the Company and may elect to take such cash compensation in Restricted Stock at a value equal to 90% of the Fair Market price.

 

(d)         Expenses. In addition to any compensation received pursuant to Section 3, the Company will reimburse the Executive for all reasonable, ordinary or necessary travel, educational, seminar, trade shows, entertainment and miscellaneous expenses incurred in connection with the performance of his duties under this Agreement, provided that the Executive properly accounts for such expenses to the Company in accordance with the Company’s practices and the expense is approved by the CEO.

 

(e)         Subsidiary and Affiliate Payments. In recognition of the fact that in the course of the performance of his duties hereunder, the Executive may provide substantial benefits to the Company’s subsidiaries or affiliated companies, the Executive and the Company may at any time and from time to time agree that all or any portion of the compensation due the

 

Page 2 of 7





Executive hereunder may be paid directly to the Executive by one or more of the Company's subsidiaries or affiliated companies.

 

(f)         Change of Control. For purposes of this Agreement, “Change of Control” means:

 

(1)        The closing of any merger, combination, consolidation or similar business transaction involving the Company in which the holders of Common Stock immediately prior to such closing are not the holders of a majority of the ordinary voting securities of the surviving person in such transaction (a “Business Combination”); or

 

(2)        The closing of any sale by the Company of all or substantially all of its assets to an acquiring person in which the holders of Common Stock immediately prior to such closing are not the holders of a majority of the ordinary voting securities of the acquiring person (an “Asset Sale”); or

 

(3)         The closing of any sale by the holders of Common Stock of an amount of Common Stock that equals or exceeds a majority of the shares of Common Stock immediately prior to such closing to a person in which the holders of the Common Stock immediately prior to such closing are not the holders of a majority of the ordinary voting securities (a “Stock Sales”); or

 

In the event of a Change in Control as defined in this section all the Executive’s unvested employee stock options will automatically vest and the Executive will have one year from his termination date to exercise all stock options issued to employee prior to his termination. Notwithstanding the previous sentence in no event can the options be exercised past the expiration date of the option.

 

 

4.

Benefits.

 

(a)         Vacation. Paid vacation each year with salary, consistent with Company’s policy for all Senior Management employees.

 

The Executive shall take his vacation at such times as the Executive may select and the affairs of the Company or any of its subsidiaries or affiliates may permit upon prior notice to his Supervisor. If the Executive does not take the vacation due to them it can be paid to Executive in cash; however, the timing of the expenditure must be approved by the CEO.

 

(b)         Employee Benefit Programs. In addition to the compensation to which the Executive is entitled pursuant to the provisions of Section 3 hereof, during the Term the Executive will be entitled to participate in any stock option plan, stock purchase plan, pension or retirement plan, and insurance or other employee benefit plan that is maintained at that time by the Company for its employees, including any programs of life, disability, basic medical and dental, and supplemental medical and dental insurance.

 

(c)         Automobile Allowance. During the term of this Agreement, the Company shall pay the Executive an additional $400 per month as an automobile allowance to be applied to any automobile expense incurred by the Executive.

 

Page 3 of 7





 

5.

Termination.

 

(a)         Termination for Cause. The Company may terminate the Executive’s employment pursuant to this Agreement before expiration of the Term at any time for cause upon written notice. Such termination will become effective upon the giving of such notice. Upon any such termination for cause, the Executive shall have no right to compensation, bonus or reimbursement under Section 3 or to participate in any employee benefit programs or other benefits to which he may be entitled under Section 4 for any period subsequent to the effective date of termination; provided, however, that any vested but unexercised options shall remain in effect following any such termination. For purposes of this Agreement, the term “cause” shall mean only:

 

 

(i)

the Executive’s conviction of a felony;

 

 

(ii)

the Executive’s conviction of misappropriating assets; or

 

 

(iii)

otherwise defrauding the Company or any of its subsidiaries or affiliates; or

 

 

(iv)

a continuing material, willful and habitual breach by the Executive of any provision of this Agreement or a continuing failure to perform the Executive's assigned job responsibilities following receipt of written notice of such breach or failure.

 

(b)         Non-Renewal of Contract If the Company elects not to renew this Agreement, the Employee shall be entitled to receive Severance Pay (as hereinafter defined) for a period of six (6) months from the effective date of termination, payable in regular installments in accordance with the Company’s general payroll practices for salaried employees. Additionally, all unvested employee stock options will automatically vest and the Executive will have one year from termination date to exercise the employee stock options. Notwithstanding the previous sentence in no event can the options be exercised past the original expiration date of the options. Receipt of Severance Pay is contingent upon Executive executing and adhering to a release of all employment claims in a form acceptable to the Company. The Company shall have no further obligations hereunder or otherwise with respect to Executive’s employment from and after the termination date.

 

(c)         Death or Disability. This Agreement and the Company's obligations hereunder will terminate upon the death or disability of the Executive. For purposes of this Section 5(b), “disability” shall mean that for a period of six (6) months in any twelve-month period, the Executive is incapable of substantially fulfilling the duties set forth in this Agreement because of physical, mental or emotional incapacity resulting from injury, sickness or disease as determined by an independent physician mutually acceptable to the Company and the Executive. Upon any termination of this Agreement due to death or disability, the Company will pay the Executive or his legal representative, as the case may be, any accrued but unpaid Base Salary (which may include any accrued but unused vacation time) through the date of such termination of employment plus any other compensation that may be due and unpaid. Any vested but unexercised options shall remain in effect following any termination by death or disability.

 

Page 4 of 7





(d)         Voluntary Termination. Prior to any other termination of this Agreement, the Executive may, on ninety (90) days’ prior written notice to the Company given at any time during the Term, terminate his employment with the Company. Upon any such termination with proper notice between January 8th, 2007 and January 8th, 2008, the Company shall pay the Executive any accrued but unpaid Base Salary through the date of such effective termination of employment (not including any accrued but unused vacation time) and the Executive shall have no further right to compensation, bonus or reimbursement under Section 3 or to participate in any employee benefit programs or other benefits to which he may be entitled under Section 4 for any period subsequent to the effective date of such termination; provided, however, that any vested but unexercised options shall remain in effect following any such termination. Should proper notice be given between January 9th, 2008 and April 30, 2009 the Executive shall be entitled to receive Severance Pay (as hereinafter defined) for a period of three (3) months from the last date of employment, payable in regular installments in accordance with the Company’s general payroll practices for salaried employees.

 

 

6.

Restrictive Covenants.

 

(a)        Competition with the Company. The Executive covenants and agrees that during the Term of this Agreement and for a period of six (6) months after termination of this Agreement, the Executive shall not, without the prior written consent of the Company, directly or indirectly (whether as a sole proprietor, partner, member, stockholder, director, officer, employee or in any other capacity as principal or agent) compete with the Company. Notwithstanding this restriction, Executive shall be entitled to invest in stock of other competing public companies so long as his ownership is less than 5% of such company’s outstanding shares.

 

(b)         Disclosure of Confidential Information. The Executive acknowledges that during his employment he will gain and have access to confidential information regarding the Company and its subsidiaries and affiliates. The Executive acknowledges that such confidential information as acquired and used by the Company or any of its subsidiaries or affiliates constitutes a special, valuable and unique asset in which the Company or its subsidiaries or affiliates, as the case may be, holds a legitimate business interest. All records, files, materials and confidential information (the “Confidential Information”) obtained by the Executive in the course of his employment with the Company shall be deemed confidential and proprietary and shall remain the exclusive property of the Company or its subsidiaries or affiliates, as the case may be. The Executive shall not, except in connection with and as required by his performance of his duties under this Agreement, (i) use any Confidential Information for his own benefit or the benefit of any person or entity with which he may be associated other than the Company; or (ii) disclose any Confidential Information to any person, firm, corporation, association or other entity for any reason or purpose whatsoever without the prior written consent of the Board of Directors of the Company, unless such information previously shall have become public knowledge through no action by or omission of the Executive.

 

(c)         Subversion, Disruption or Interference. At no time during the term of this Agreement and for one (1) years after termination shall the Executive, directly or indirectly, interfere, induce, influence, combine or conspire with, or attempt to induce, influence, combine or conspire with, any of the employees of, or consultants to, the Company to terminate their relationship with the Company or compete with or ally against the Company or any of its

 

Page 5 of 7





subsidiaries or affiliates in the business in which the Company or any of its subsidiaries or affiliates is then engaged in.

 

(d)        Enforcement of Restrictions. The parties hereby agree that any violation by Executive of the covenants contained in this Section 6 will likely cause irreparable damage to the Company or its subsidiaries and affiliates and may be restrained by process issued out of a court of competent jurisdiction, in addition to any other remedies provided by law.

 

7.                 Assignability.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign shall acquire all or substantially all of the assets and business of the Company. The Executive’s rights and obligations hereunder may not be assigned or alienated (except as provided in this agreement) and any attempt to do so by the Executive will be void.

 

8.                 Severability. If any provision of this Agreement is deemed to be invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties to the other; provided, however, that the provisions of Section 6 may be modified and enforced by a court in any legal or equitable action as necessary to comply with applicable law as determined by the court. The remaining provisions of this Agreement shall be valid and binding.

 

 

9.

Miscellaneous.

 

(a)        Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal, substantive laws of the State of Florida without giving effect to the conflict of laws rules thereof.

 

(b)         Waiver/Amendment. The waiver by any party to this Agreement of a breach of any provision hereof by any other party shall not be construed as a waiver of any subsequent breach by any party. No provision of this Agreement may be terminated, amended, supplemented, waived or modified other than by an instrument in writing signed by the party against whom the enforcement of the termination, amendment, supplement, waiver or modification is sought.

 

(c)         Attorney's Fees. In the event any legal or equitable action is commenced to enforce the terms and conditions hereof, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and expenses.

 

(d)         Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and replaces and supersedes any prior agreements or understandings.

 

(e)         Counterparts. This Agreement may be executed in counterparts, all of which shall constitute one and the same instrument.

 

(f)          Facsimile.        A facsimile copy of this agreement and any signatures hereon shall be considered for all purposes as an original.

 

Page 6 of 7





IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day and year first above written.

 

COMPANY:

 

EAUTOCLAIMS, INC.

 

By:

 

 

 

Its:

 

 

 

EXECUTIVE:

 

 

 

 







 

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