Personal Services Agreement
Essay by sunshine250191 • March 3, 2012 • Research Paper • 2,575 Words (11 Pages) • 1,511 Views
PERSONAL SERVICES AGREEMENT
Parties: GSI West, Inc.
a California corporation ("Employer")
735 Bryant Street
San Francisco, CA 94107
DAMON MINTZER ("Executive")
15 Ketch Street
Marina del Rey, CA 90292
Date: June 12, 2001 (the "Start Date")
Background: Employer and certain of its affiliates are in the business of
developing and operating e-commerce and direct response retail businesses for
media, entertainment and other companies (the "Business"). Employer desires to
employ Executive to provide personal services in connection with the Business,
including without limitation the development, implementation and operation of a
new division (the "New Division") of Global Sports, Inc. ("Global"), and
Executive desires to accept such employment, on the terms and conditions stated
in this Personal Services Agreement (this "Agreement").
INTENDING TO BE LEGALLY BOUND, and in consideration of the mutual
agreements stated below, Executive and Employer agree as follows:
1. Employment and Term. Unless terminated earlier as provided for herein
or extended by written agreement of the parties, Employer hereby employs
Executive, and Executive accepts such employment, subject to all of the terms
and conditions of this Agreement, for a term of three (3) years beginning on the
Start Date (the "Employment Period"). As used herein, the term "Contract Year"
shall mean each twelve (12) month period from July 1 to June 30 during the
Employment Period, with the first Contract Year commencing on July 1, 2001.
2. Position and Duties. Executive will serve as President and Chief
Operating Officer and in such capacity will have supervision and control over,
and responsibility for, the overall business, affairs and management of the New
Division. Executive will report to, and be subject to the direction of, the
Chief Executive Officer (the "CEO") of Global, as well as Employer's Board of
Directors (the "Board"). Executive will also have such other responsibilities
and duties consistent with his present duties and current position with
Employer, as may from time to time be prescribed by the CEO or the Board. During
the Employment Period, and so long as no notice of termination has been given by
Employer under Section 4.4 and no notice of resignation has been given by
Executive under Section 4.6, Executive will devote all of his working time,
energy, skill and best efforts to the performance of his duties hereunder in a
manner which will faithfully and diligently further the business and interests
of Employer.
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3. Compensation, Benefits and Expenses.
3.1 Base Salary. Employer will pay to Executive a monthly base salary
("Base Salary") of $25,000 per month, payable in accordance with Employer's
normal payroll practices, for each month during the Employment Period.
Executive's Base Salary will be reviewed by Employer on an annual basis. As used
in this Agreement, "Annual Base Salary" means the Base Salary multiplied by
twelve.
3.2 Bonuses. In addition to his Base Salary, for each Contract Year
during the Employment Period, Executive will be eligible to receive an incentive
bonus equal to 2% of the amount by which the operating income of the New
Division for such Contract Year, determined in accordance with generally
accepted accounting principles consistently applied, exceeds $2.0 million.
Executive will be entitled to receive such other bonuses as may be determined by
Employer from time to time (it being understood that Employer will have no
obligation to pay any other bonuses). The bonus amount to which Executive is
entitled under the first sentence of this Section 3.2 is referred to herein as
the "Bonus."
3.3 Benefits. During the Employment Period, Executive will be
entitled to participate and will be included in all equity incentive, stock
option, stock purchase, profit sharing, savings, bonus, health insurance, life
insurance, group insurance, disability insurance, pension, retirement and other
benefit plans or programs of Employer now existing, or established hereafter,
and offered to its management level personnel, subject to the terms and
provisions thereof. Employer
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