Options!
CEO COMPENSATION/OPTIONS
FROM:
edgar-online.com
EXHIBIT 10.8
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") made as of the 3rd day of May 2001, between Lumenon Innovative Lightwave Technology Inc., a company duly incorporated under the laws of the State of Delaware having its head office at:
8851, Trans-Canada Highway, St-Laurent, Province of Quebec, H4N 2N9 (the "Company") and Mr. Gary Moskovitz, residing at 12202 Foster Road, Los Alamitos, California, 90720-4604, U.S.A. (the "Executive").
4.3. PERFORMANCE BONUS. In addition to the annual base salary and sign on bonus outlined above, the Executive will be entitled to a potential annual performance bonus equivalent to an amount equal to 50% of his base salary. For the period of May 7th 2001 to May 6th, 2002, this potential annual performance bonus amount would equal three hundred fifteen thousand Canadian dollars ($315,000.00 Can.) subject to the following terms:
(a) the actual amount of the bonus will be based on management by objective ("MBO") to be determined by the Board of Directors within ninety (90) days of the Starting Date;
(b) for the first year of the Executive's employment hereunder, the Executive shall be entitled to a guaranteed bonus of one hundred and sixty thousand Canadian dollars ($160,000.00 Can.) to be deducted from the above mentioned potential annual performance bonus and payable, less all tax withholdings and statutory and other deductions, in an amount of eighty thousand Canadian dollars ($80,000 Can.) on each of the two following dates: November 7, 2001 and May 7, 2002.
4.4. STOCK OPTIONS. As an incentive for the Executive to remain in the service of the Company, the Company grants to the Executive an option to purchase 1,500,000 shares of the Company's common stock, per the Company's Stock Option Agreement. The exercise price of the stock will be the fair market value of the Company's common stock as of the close of the stock market on the last working day prior to the Starting Date of the Executive. The Stock Options will become exercisable (will "vest") at the rate of twenty-five percent (25%) (375 000 shares) on the first anniversary of the Starting Date, the remaining 75% (1 125 000 shares) at the rate of 1/36th per month (31 250 shares) during the following thirty six (36) months (100% vested over a 48 month period). In addition, all of the Stock Options will become fully exercisable (100% fully vested) upon the consummation of any transaction constituting a "change of control" of the Company as defined hereinafter.
May 7, 2001 LUMM stock price =~$2/share |
