Employment Agreement - Hollywood Media Corp. and Scott Gomez
HOLLYWOOD MEDIA CORP.
April 2, 2003
Scott Gomez
12570 SW 151 Street, Unit #128
Miami, Fl 33186
Dear Scott:
We are pleased to extend to you an offer of employment with Hollywood Media
Corp. as Vice President - Accounting and Finance reporting to the Chief
Executive Officer. This offer is contingent upon successful completion of a
background investigation. Enclosed please find a Background Check Release
Authorization form. Please complete this form and fax it to the attention of
Chris Muise at (561) 998-2974.
Assuming favorable results for the above, we would like you to commence
employment on April 21, 2003 under the following terms:
A. SALARY
Your starting salary will be four thousand three hundred twenty-six
dollars and ninety-two cents ($4,326.92) per bi-weekly pay period, (one
hundred twelve thousand five hundred dollars ($112,500) annually).
Following successful completion of twelve (12) months of full-time
employment, your salary will be changed to four thousand eight hundred
seven dollars and sixty-nine cents ($4,807.69) per bi-weekly pay period
(one hundred twenty-five thousand dollars ($125,000) annually).
B. STOCK OPTIONS
On the date your employment commences, you will be granted options to
purchase 20,000 shares (the "Options") of Hollywood Media Corp. Common
Stock. The options will have an exercise price equal to the closing
sale price of the Common Stock on the NASDAQ Market on the trading day
immediately preceding the employment commencement date. The options
will vest twenty-five percent (25%) per year over four (4) years
(subject to your remaining an active employee of Hollywood Media Corp.
at each vesting date) and will have a five (5) year term from the date
of grant. The Options shall be granted under (and therefore subject to
all terms and conditions of) Hollywood Media Corp.'s applicable stock
option plan and any amendments thereto, and any successor plan thereto
and all rules and regulations of the Securities and Exchange Commission
and NASDAQ applicable to stock option plans.
C. TERMINATION
If, at any time during the first two years following your commencement
of employment with the Company, your employment is terminated by the
Company without cause, the Company agrees to pay to you severance equal
to the lesser of (a) twelve (12) months' salary at the salary rate then
in effect, or (b) the salary due you for the remaining balance of the
two (2) year employment term. This payment to be made in a lump-sum
payment within sixty (60) days of the date of the termination.
Initial: /s/ SG
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2255 Glades Road o Suite 219A o Boca Raton, Florida 33431-7383
Telephone 561.998.8000 o Fax 561.998.2974
<PAGE>
The Company also reserves the right to terminate your employment and
all Company obligations hereunder by written notice to you, for cause.
For purposes of this agreement, "cause" shall be defined as personal
dishonesty, willful misconduct, intentional or continual failure to
perform stated and material duties after reasonable notice and
opportunity to cure any failure or default, a known breach of fiduciary
duties where such breach is made known to you and you are given a
reasonable opportunity to remedy or cure the breach, or if you commit
any acts of dishonesty, fraud, misrepresentation, or other acts of
moral turpitude against the Company. In the event the Company
terminates this agreement for cause, or in the event, you leave
employment with the Company on your own initiative, the Company shall
no longer be obligated to make any further salary payments to you
beginning on such date and you shall not be entitled to any severance
payment as described hereunder.
A. GOVERNING LAW; VENUE; WAIVER OF JURY TRIAL
This Agreement will be governed by and construed in accordance with the
laws of the State of Florida, without reference to conflicts of law
rules, and without regard to its location of execution or performance.
Jurisdiction and venue for any claim or cause of action arising under
this Agreement shall be exclusively in the courts located in Palm Beach
County, Florida. EACH PARTY WAIVES ITS RIGHT TO A JURY TRIAL IN ANY
COURT ACTION ARISING BETWEEN THE PARTIES, WHETHER UNDER THIS AGREEMENT
OR OTHERWISE RELATED TO THIS AGREEMENT, AND WHETHER MADE BY CLAIM,
COUNTERCLAIM, THIRD PARTY CLAIM OR OTHERWISE. THE AGREEMENT OF EACH
PARTY TO WAIVE ITS RIGHT TO A JURY TRIAL WILL BE BINDING ON ITS
SUCCESSORS AND ASSIGNS.
You will find information enclosed with this letter briefly explaining the
Company's variety of benefits. More comprehensive information regarding these
benefits is contained in the Employee Handbook that will be issued to you on
your first day of employment.
On your first day of employment please arrive at 9:00 a.m. for your "New Hire
Orientation." You may park in any space that is not marked Reserved or Visitor.
In compliance with the Immigration Reform and Control Act of 1986, the Company
requires proof of identity and eligibility to work in the US within three (3)
days of hire. We have included a list of these approved documents with this
letter for your reference. Please bring with you either one (1) item from Column
A OR one (1) item from Column B AND one item from Column C.
Scott, on behalf of the management of Hollywood Media Corp., we look forward to
having you on board as an integral part of our organization.
Regards,
/s/ Lisa A. Beadle
Lisa A. Beadle, PHR
Director of Human Resources
Enclosures
cc: HRD Files
Initial: /s/ SG
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BENEFITS SUMMARY
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This summary briefly highlights each of these benefits plans. Nothing in this
summary, however, should be read to create any contractual obligations beyond
the rights and protections afforded in the formal legal documents that govern
these plans. The Company reserves the right to modify or terminate any and all
of its benefits plans, policies, and arrangements at any time at its sole
discretion.
Medical, Dental, and Disability Benefits
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You will be eligible to participate in the Company's benefit plans on the first
of the month following thirty (30) days of continuous employment.
401(k) Retirement Savings Plan
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You will be eligible to participate in the Company's 401(k) Retirement Savings
Plan on the first of the month following one (1) year of continuous employment.
Information regarding this plan will be made available to you prior to
eligibility.
Direct Deposit
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If you would like to participate in this benefit, please bring a voided check
for direct deposit into a checking account. For direct deposit into a savings
account please provide an account confirmation slip from your bank. You may
choose to have your money deposited in up to three separate accounts.
Paid Vacation
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After one (1) year of employment, you receive ten (10) days of paid vacation
time per year. After five (5) years of employment, you receive fifteen (15) days
of paid vacation time per year. Complete information regarding the vacation plan
can be found in the Employee Handbook that will be issued to you on your first
day of employment.
Paid Sick Days
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After completing ninety (90) days of employment, you receive five (5) days of
paid sick time per year.
Paid Personal Days
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After completing ninety (90) days of employment, you receive three (3) days of
paid personal time per year.
Initial: /s/ SG
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