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Sample Business Contracts

Employment Agreement - ATG Inc. and VIk Mani

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
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                             EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement") is entered into as of the 27/th/ day of
October, 2000, between ATG Inc ("the Company") and Vik Mani ("Prospective
Employee") and collectively as "the Parties".  In consideration of the foregoing
and the mutual promises and covenants contained herein and other good and
valuable consideration, the Company hereby employs Prospective Employee as its
Chief Operating Officer, and Prospective Employee hereby accepts such
employment.

1.   The term of the employment is for thirty-six (36) months effective the date
     of joining of the Company by Prospective Employee. ATG will announce
     Prospective Employee as its new Chief Operating Officer of the Company no
     later than November 3, 2000. Prospective Employee shall start his
     employment, on a date mutually agreed upon between the CEO of the Company
     and Prospective employee, which shall be soon after the Company announces
     Prospective Employee as its Chief Operating Officer. Prospective Employee
     is not employed "at-will", but is employed under the terms and conditions
     set forth in this Agreement.

2.   Prospective Employee will report at all times to the CEO of the Company.
     The following officers and department heads shall report to Prospective
     Employee: All operations personnel and business development personnel,
     except Fred Feizollahi's engineering department.

3.   The Company has paid signing bonus ("Signing Bonus") of $560,000.00, hereby
     receipted for by Prospective Employee.  The Signing Bonus shall be
     irrevocable and non-refundable to the Company and is for the inducement to
     the Prospective Employee to execute this Agreement and leave his current
     employment, and to assist the Company in obtaining financing from financial
     institutions.  Upon the execution of this Agreement and giving notice to
     his current employer, the said Signing Bonus shall be deemed fully earned
     Prospective Employee.  Prospective Employee shall be responsible for all
     taxes associated with the Signing Bonus, i.e. federal and state withholding
     for income taxes, social security, and medicare.

4.   In addition to the Signing Bonus described in paragraph three, the Company
     shall pay Prospective Employee a salary of $225,000, in the first twelve
     (12) months of employment payable in accordance with Company current
     payroll practices as other employees are scheduled for their payment of
     employment compensation.  Further, the Company shall pay Prospective
     Employee, a guaranteed cash bonus of $100,000 payable in two equal payments
     of $50,000 each at the end of the sixth and twelfth months from
     commencement of employment.  Total first twelve (12) months' compensation,
     including the Cash bonus set forth in this section, but excluding the
     Signing Bonus, and stock options as hereinafter set forth, is $325,000
     gross.
<PAGE>

5.   The Company shall pay to Prospective Employee in the second twelve (12)
     month period of employment, a salary of $225,000, plus a guaranteed cash
     bonus in the amount of $75,000 payable in two equal payments of $37,500
     each at the end of the sixth and the twelfth month from the commencement of
     the second twelve (12) month period of employment.  Further, Company shall
     pay Prospective Employee a performance cash bonus of $50,000.00 based on
     predetermined performance goal as set forth below.  (The total compensation
     is $350,000 in the second twelve (12) month time period if performance goal
     is met, excluding stock options as hereinafter set forth).  The performance
     goal is defined as the Company obtaining a minimum of $15 million ("New
     Business Goal") of new DOE business (contracted capacity) from INEEL,
     Hanford, Rocky Flat or any other DOE contracts within twenty-four (24)
     months from commencement of the employment.  Once the $15 million minimum
     New Business Goal requirement is met, the performance cash bonus will be
     earned based on $10,000 per million dollars of new business up to a maximum
     of $50,000.  Such performance bonus earned by the Prospective Employee
     shall be paid to the Prospective Employee at six month intervals commencing
     the date of achievement of the new business goal, but no later than 30 days
     after earning the maximum second twelve (12) month employment period
     performance bonus as stated above.  In the event Prospective Employee is
     terminated by the Company, resigns for Good Reason, as hereinafter defined,
     or due to Change of Control, as hereinafter defined, or dies or becomes
     disabled during the second twelve (12) month period, such performance bonus
     will be computed and paid on the same basis as if he were still employed
     with the Company for such period.

6.   The Company shall pay to Prospective Employee in the third twelve (12)
     month period of employment a salary of $240,000, plus a cash bonus up to
     the amount of $110,000 based on the performance goal to be determined by
     both Parties.  Such goal will not be less than $20 million of DOE New
     Business ($20 million of DOE new business contracted capacity) from
     Hanford, Rocky Flats, INEEL or any other DOE contracts, however, alternate
     sources of "New Business" may be agreed upon between the Company and the
     Prospective Employee as the basis for setting the performance goal (New
     Business) stated above.  Such bonus shall be paid to Prospective Employee
     pro-rated at 6 month intervals commencing the date of achievement of the
     performance goal, but no later than thirty (30) days after earning the
     bonus set forth above.  In the event Prospective Employee is terminated by
     the Company, resigns for Good Reason, as hereinafter defined, or due to
     Change of Control, as hereinafter defined, or dies or becomes disabled
     during the third twelve (12) month  period, such bonus will be computed and
     paid on the same basis as if he were still employed with the Company for
     such period.  During the third twelve (12) month period of employment only,
     the Prospective Employee will be paid salary at the annual salary rate of
     $240,000 only after the performance goal as agreed upon between the Company
     and the Prospective Employee as stated above is achieved and

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<PAGE>

     the actual business delivered during the first 24 months of employment is
     at least $10 million. During the third twelve (12) month period of
     employment only, until such a time when the performance goal is achieved,
     the employee will be paid salary at the reduced annual rate of $150,000. In
     the event the performance goal for the third twelve (12) month period is
     not mutually agreed to, then it shall be as set forth above, which is
     defined as the Company obtaining a minimum of $20 million ("New Business
     Goal") of new DOE business (contracted capacity) from INEEL, Hanford, Rocky
     Flat or any other DOE contracts within 24 months from commencement of the
     employment.

7.   In addition to the Company's New Business Goals, as the Chief Operating
     Officer, Prospective Employee understands that the overall Company
     performance such as profitability, cost cutting measures, health and
     safety, effective and efficient operation, new market and product
     development, will also be within Prospective Employee's executive
     responsibility.  However, the standard for Performance Bonus eligibility
     shall be the New Business Goals.  Because of such responsibilities of
     Prospective Employee, the Company agrees to provide Prospective Employee
     with a sufficient operations budget assistance and support to allow the
     accomplishment of the New Business Goals, such as reasonable travel and
     entertainment expenses, cell phone, computer, etc and other customary
     Business Development expenses, as well as to assist Prospective Employee in
     his overall responsibilities.  Prospective Employee is authorized to incur
     expenses in the performance of his duties. The Company shall reimburse
     Prospective Employee for all such expenses ten days after submitting the
     expenses or at the next pay period, whichever is sooner.

8.   A.  In the event the Prospective Employee resigns from the Company due to
     no breach by the Company of this agreement, before the expiration of the
     thirty-six (36) month term of this Agreement, Prospective Employee's
     employment will end, without further obligation to the Company, EXCEPT,
     Prospective Employment shall pay to the Company certain penalty amounts due
     to such resignation based upon the timing of his resignation from the
     Company.  In the event Prospective Employee resigns effective within the
     first twelve (12) months of the term he shall pay the Company the penalty
     sum of $162,500 within ten (10) days after such resignation's
     effectiveness.  In event Prospective Employee resigns effective between
     twelve (12) months and twenty-four (24) months of the term, he shall pay
     the Company the penalty sum of $108,000 within ten (10) days after such
     resignation's effectiveness.  In the event Prospective Employee resigns
     effective between twenty-four (24) months and thirty-six (36) months of the
     term, he shall pay the Company the penalty sum of $60,000 within ten (10)
     days after such resignation's effectiveness.  No other payments by the
     Prospective Employee other than above are due to the company under any
     circumstances of voluntary separation of the Prospective Employee from the
     Company that are not due to the Company's breach of this Agreement.
     However, in the event the Prospective Employee resigns during the term of
     this

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<PAGE>

     Agreement due to breach of this Agreement by the Company, or the Company
     filing Bankruptcy in any form, then the Company shall pay the Prospective
     Employee an amount equal to one twelve (12) month period salary for the
     twelve (12) month period of such resignation, the guaranteed cash bonus for
     the twelve (12) month period during which the resignation occurs, earned
     but not paid performance bonuses, the remaining auto loan balance, and the
     relocation costs set forth in Paragraph 18 hereof. Further, all the stock
     options granted shall be deemed fully earned and vested with the time
     period to exercise all stock options extended by 3 months and the Company
     shall be responsible for the continuation of medical benefits at Company's
     expense for a period of twelve (12) months.

     B.   In the event Prospective Employee is terminated by the Company for any
     reason whatsoever, including disability, and other than for Cause ("Cause"
     as defined below) prior to the end of the thirty-six (36) month term,
     Prospective Employee shall not be obligated to pay the Company any penalty
     monies.  Additionally, the Company shall pay the Prospective Employee a
     severance amount equal to one twelve (12) month period of salary for the
     twelve (12) month period such termination occurs, the guaranteed cash bonus
     for the twelve (12) month period during which the termination occurs, all
     the performance cash bonuses earned but not paid to Prospective Employee
     until then, the remaining auto loan balance, and the relocation costs as
     set forth in Paragraph 18 hereof.  Further, all stock options granted will
     be deemed fully earned and vested with the time period to exercise the
     stock options extended by 3 months.  Additionally, the Company shall be
     responsible for continuation of medical benefits for a period of twelve
     (12) months at Company's expense.  Notwithstanding the foregoing, if the
     Prospective Employee is terminated by the Company between the twenty-fifth
     (25th) and thirty-sixth (36th) months of employment, the Company shall pay
     the Prospective Employee a severance salary equal to only the salary rate
     at which the Prospective Employee is then being paid months 25 through 36
     of this Agreement.

     "For Cause" or "Cause" as used in this Agreement shall mean that at the
     option of the Company, Prospective Employee's employment hereunder shall be
     terminated immediately upon any of the following actions or occurrences if
     Company in good faith and not in an arbitrary manner believes that such
     action or occurrence impairs Prospective Company's willingness to place
     trust in Prospective Employee as an employee or impairs Prospective
     Employee's ability to perform the services required of Prospective Employee
     hereunder:

               (i)  Prospective Employee's personal dishonesty, commission and
                    conviction of any felony affecting his reputation and the
                    business of the Company;

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<PAGE>

               (ii)  Prospective Employee's gross negligence or gross negligent
                     misconduct which materially affects the business of the
                     Company;

               (iii) Prospective Employee's willful misconduct;

     C.  Death or disability shall not be deemed a resignation and Prospective
     Employee or his successors or assignees shall have no obligation of any
     payments to the Company due to Prospective Employee's death or disability.
     Prospective Employee is deemed to be under a disability if he is unable to
     perform his duties on account of illness or other incapacity and such
     illness or other incapacity continues for a period of more than three (3)
     consecutive months during any twelve (12) month period.  After such three
     (3) month period, the Company shall have the right to terminate Prospective
     Employee.  The termination becomes effective after providing thirty (30)
     days written notice. If Prospective Employee is deemed disabled, by a
     physician of his choosing, then the time deadline to exercise any stock
     option shall be extended twelve (12)months and waived entirely if
     Prospective Employee is deceased.  Prospective Employee's estate, legal
     representatives, or heirs, as appropriate, shall succeed to and acquire all
     rights and benefits of Prospective Employee herein.

     D.  Prospective Employee or his successors or assignees shall have no
     obligation for any payment to the Company if Prospective Employee resigns
     for Good Reason.  "Good Reason" shall mean any one of the following: (i)
     the Company breached this Agreement; (ii) Changes Of Control as defined in
     Paragraph number 13; (iii) appointment of new CEO; (iv) the Company files
     for Bankruptcy in any form.

     E.  Termination or resignation is effective thirty days after providing
     written notice to the other party in the manner described in Paragraph 22.

9.   Prospective Employee shall be granted an option to purchase 75,000 shares
     of the Company's common stock at the market price at the beginning of the
     employment term, deemed vested in accordance with the Company's policies
     i.e. vested proratedly over thirty-six (36) months.  However, in the event
     of Prospective Employee's death, disability, termination by the Company, or
     resignation by Prospective Employee during the term for Good Reason or
     Change of Control, all such stock options granted shall be deemed earned
     and vested.

10.  In the event the New Business Goal ($20 million of contracted capacity) is
     met by the Company on or before December 31, 2001, a stock option for
     60,000 shares of the Company's common stock, at the stock price as of
     December 31, 2001 shall be granted to the Prospective Employee.  In the
     event the New

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<PAGE>

     Business Goal is exceeded by $10 million ($30 million total of contracted
     capacity), a stock option of an additional 30,000 shares (for a total of
     90,000 shares) of Company's common stock, at the same price as set forth
     above, shall be granted to Prospective Employee. Such options shall vest in
     accordance with the Company policy as set forth above in Paragraph 9,
     subject to the same exceptions as set forth in paragraph 9 for death,
     disability, termination by the Company, or resignation by the Prospective
     Employee for Good Reason or Change of Control.

11.  In the event during the term of this Agreement, the Company's common stock
     sells publicly at a price of $20 or more per share for a period of three
     (3) consecutive months, (in the event of stock splits, adjustments shall be
     made accordingly for such effective computation), the Company shall grant
     Prospective Employee an additional 100,000 shares of the Company's common
     stock, deemed vested equally over the three twelve (12) month periods of
     the term.  The option price shall be as set forth above.   Such options
     shall vest in accordance with the Company policy as set forth above in
     Paragraph 9, subject to the same exceptions as set forth in Paragraph 9 for
     death, disability, termination by the Company, or resignation by the
     Prospective Employee for Good Reason or Change of Control.

12.  All stock options vested to Prospective Employee must be exercised in
     accordance with the Company's standard policies for officer stock options.

13.  In the event the Prospective Employee resigns due to a Change of Control,
     ("Change of Control" means any one of the following:  Change Of Ownership
     including acquisition of the Company; acquisition of equal to or greater
     than 50% of the issued and outstanding common stock by a single individual
     or entity other than the current principal stock holders; a significant
     merger or consolidation; change in executive direction of the Company
     including the appointment of a new CEO; a change in the majority of the
     Board of Directors caused by the merger or consolidation; Liquidation or
     Dissolution of the Company including direct or indirect sale or other
     disposition of all or substantially all of the assets of the Company; a
     significant change in the business lines of the Company), the Stock Options
     already granted prior to the date of the resignation are deemed fully
     earned and vested (the time period to exercise all stock options shall be
     extended by three months) and the Prospective Employee's resignation will
     not cause any of the penalty monies specified in 8 A. to be payable and due
     to the Company.  In addition, the Company shall pay the Prospective
     Employee a severance amount equal to the 12 month salary amount for the 12
     month period in which the resignation shall occur, the remaining auto loan
     balance, the guaranteed cash bonus for the year in which the resignation
     occurs, and the relocation costs set forth in Section 18, and the Company
     shall provide for the continuation of medical benefits at the Company's
     expense for a period of twelve (12) months after the effective date of
     resignation.

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<PAGE>

14.  The Company's corporate house in Richland, WA, fully furnished, shall be
     provided, as primary residence, exclusively to Prospective Employee and
     paid for and maintained by the Company.  All utilities and maintenance
     expenses will be Company's responsibility.  The Prospective Employee will
     be responsible for all personal long distance telephone charges.
     Prospective Employee's principal place of work is deemed to be Richland,
     WA.

15.  Company shall provide to Prospective Employee one or more automobiles.
     Prospective Employee may purchase any such automobiles, after his
     resignation from his present employer. The Company will be responsible for
     the auto loan up to $30,000.00 and make payments directly to the Lending
     company. The car will be titled in Prospective Employee's name for his
     unrestricted use. The car will belong to the Prospective Employee and the
     Prospective Employee shall bear the operating expenses for maintenance and
     personal use.

16.  The Company shall provide Prospective Employee with the Company's standard
     benefits to all employees, including but not limited to medical, dental,
     vision and life insurance benefits, as well as participation in the
     Company's 401K or other retirement plan(s), sick days and personal days.
     Prospective Employee shall be provided the option to add, at his expense
     such participation of family members in such plans.

17.  Prospective Employee shall be entitled to receive 4 weeks paid vacation
     during each twelve (12) month period of the agreement. Prospective Employee
     agrees to reasonably work with the Company as to timing and length of time
     increments when such vacation is used.

18.  The Company will pay relocation costs for the Prospective Employee and
     spouse to move to Richland, Washington including coach air fare or over the
     road expenses.  The Prospective Employee will maintain his current
     household in Denver at his own expense and will not move furniture to
     Richland, Washington. The Company will pay for movement of personal effects
     and shipment of one automobile.  In the event of termination of the
     Prospective Employee by the Company, voluntary termination by the
     Prospective Employee due to Good Reason or Change of Control conditions,
     stated in Paragraph 13, all relocation costs, on the same basis as above,
     shall be paid to the Employee for relocation back to Denver, Colorado or
     another city within the continental USA within the same distance.

19.  DELETED

20.  The Company will reimburse Prospective Employee's family (either the
     Prospective Employee or the spouse) for round-trip coach class airfare and
     expenses to Denver, Colorado not to exceed ten trips during each twelve
     (12)

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<PAGE>

     month period of employment. In additional to the ten trips, the Company
     will reimburse Prospective Employee and the spouse for additional two trips
     the cost of round-trip coach class airfare and expenses to Denver, Colorado
     during the Holiday seasons i.e. November 22 through December 31.

21.  All information disclosed and discussed in writing or verbally by any party
     (or its representative) in connection with the transaction contemplated by
     this Agreement to any other party (or its representative) shall be kept
     confidential by such other party and its representative.

22.  Any notice or other communication hereunder must be given in writing and
     (a) delivered in person, (b) transmitted by telex, telefax or other
     telecommunications mechanism or (c) mailed by certified or registered mail,
     postage prepaid, receipt requested, as follows:

          If to Company addressed to:
          ATG Inc.
          47375 Fremont Boulevard
          Fremont, CA 94538
          Attention: Doreen Chiu, President and CEO

          If to Prospective Employee, addressed to:
          Vik Mani
          7902 Glenridge Drive
          Castle Rock, Colorado 80104

     or to such other address or to such other person as either party shall have
     last designated by such notice to the other party.  Each such notice or
     other communication shall be effective (i) if given by telecommunication,
     when transmitted to the applicable number so specified in (or pursuant to)
     this Paragraph 22 and an appropriate answer back is received, (ii) if given
     by mail, three days after such communication is deposited in the mails with
     first class postage prepaid, addressed as aforesaid or (iii) if given by
     any other means, when actually received at such address.

23.  This Agreement supersedes any and all prior written or oral agreements
     between the Company and Perspective Employee and constitutes the entire
     agreement between the parties with respect to the subject matter herein and
     no modification, amendment, or waiver of any of the provisions of this
     Agreement shall be effective unless in writing and signed by both parties.

24.  Prospective Employee and the Company agree that any dispute or controversy
     relating or in connection with this Agreement, or the interpretation,
     validity, construction, performance, breach, or termination shall be
     settled by binding arbitration.  The decision of the Arbitrator may enter
     as a judgment in any court

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<PAGE>

     with competent jurisdiction. The prevailing party shall be awarded cost,
     expenses, and attorney fees.

25.  This Agreement is binding upon and benefits the heirs, executors, and legal
     representatives of Prospective Employee and any successors of the Company.
     Any such successor of the Company will be deemed substituted for the
     Company under the terms of this Agreement for all purposes.  Successor
     shall mean any firm, corporation, or other business entity which at any
     time whether by purchase, merger, or otherwise, directly or indirectly
     acquires all or substantially all of the assets or business of the Company.

26.  The Prospective Employee is not required to Mitigate the amount of any
     payment or benefit received pursuant to this Agreement due to cessation of
     employment Further, the Company cannot reduce any benefits or payments
     because of any earnings or benefits that Prospective Employee may receive
     from any other source known to the Company. Notwithstanding the foregoing,
     the Prospective Employee is not required to inform the Company of any
     retirement benefits received from present or previous employers, and such
     retirement benefits shall not reduce the liability of the Company
     hereunder.

27.  This Agreement may be executed in any number of counterparts, each of which
     shall be an original, but all of which together shall constitute one and
     the same agreement.  Facsimile signatures are deemed to be originals for
     the purposes of this Agreement.

28.  All agreements and covenants contained herein are severable, and, in the
     event any one of them, with the exception of those contained in reference
     to the duties to be performed by the Prospective Employee and his
     compensation, shall be held to be invalid by any competent court, this
     Agreement shall be interpreted as if such invalid agreements or covenants
     were not contained herein.

29.  Any ambiguity in this Agreement will be not be construed in favor of either
     party.

30.  The Company hereby represents that this Agreement has been approved by its
     Board of Directors and agrees to hold harmless Prospective Employee if the
     Board of Directors has not approved this Agreement.

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<PAGE>

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed by its duly authorized officer or individually as of the day and year
first above written.


Company                                 Prospective Employee

ATG, Inc.


By /s/ Doreen M. Chiu                   /s/ Vik Mani
   ---------------------------          -----------------
     ATG, Inc. President & CEO              Vik Mani

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