freedgar.com
NOTE 11- COMMITMENTS AND CONTINGENCIES
Employment Agreements The Company has entered into employment
agreements as follows:
The Company has a three-year employment agreement with Daniel Hoyng,
its Chief Executive Officer. The term runs through April 26, 2003 and,
unless notified by the Board of Directors or the Executive Committee of
the Company, the agreement will automatically be renewed for one year,
each year thereafter. In addition to a base salary, bonuses and other
incentives, Mr. Hoyng will be granted 1,000,000 shares of common stock
annually on the anniversary date of the agreement. These shares carry
an anti-dilution provision and are not subject to any reverse split. To
give the executive the opportunity to attain an ownership position of
not less than 5% of the outstanding stock of the Company, the executive
will be granted no less than 3,000,000 options to purchase the Company's stock over 3 years. The
first such award will be no less than 1,000,000 shares with an award
date of June 1, 2000. Additionally, once a year the executive may
choose to convert one-third of his annual salary to stock, the purchase
price being the lowest closing price of the Company's stock during the
last ten months (see Stock Options). In addition, in accordance with
the agreement, the executive received, on September 13, 2000, a signing
bonus of 1,500,000 shares of the Company's common stock.
The Company has a three-year employment agreement with Ernest Zavoral,
its President. The term runs through April 26, 2003 and, unless
notified by the Board of Directors or the Executive Committee of the
Company, the Agreement will automatically be renewed for one year, each
year thereafter. The provisions of Mr. Zavarol's agreement, relating to
stock and options, are substantially the same as those of Mr. Hoyng's
agreement.
The Company has a three-year employment agreement with Marek Lozowicki,
its Executive Vice President. The term runs through April 26, 2003 and,
unless notified by the Board of Directors or the Executive Committee of
the Company, the Agreement will automatically be renewed for one year,
each year thereafter. The provisions of Mr. Hoyng's agreement, relating
to stock and options, are substantially the same as those of Mr.
Hoyng's agreement. |
