Sample Business Contracts

Employment Agreement - LodgeNet Entertainment Corp.

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 (this "Agreement"), dated as of May 11, 1999
is made by and between LodgeNet Entertainment Corporation, a Delaware
corporation (the "Corporation" or "LodgeNet"), and ____________ ("Executive")
with reference to the following circumstances, namely:

              A.     Executive is employed by LodgeNet as its Senior Vice
                     President and ___________________, and as such is, and will
                     be, making an important contribution to the development and
                     operation of LodgeNet's business.

              B.     Because of the foregoing, the Corporation desires to
                     provide for its employment of Executive as hereinafter
                     provided, and Executive desires such employment, upon the
                     terms hereinafter provided.

       NOW, THEREFORE, the Corporation agrees to employ Executive, and
Executive agrees to such employment, upon the following terms and conditions:

       1. PERIOD OF EMPLOYMENT. The employment of Executive by the Corporation
pursuant to this Agreement shall be for a period (sometimes referred to herein
as the "period of employment") beginning on the date hereof and continuing,
unless sooner terminated as provided in Section 6 or 8 herein, through December
31, 1999; provided, however, that on each December 31, commencing with December
31, 1999, such period of employment shall automatically be extended for an
additional year unless sixty (60) days prior thereto either party hereto has
given written notice to the other that such party does not wish to extend the
period of employment.


       2. DUTIES. During the period of employment, Executive shall serve as
Senior Vice President and Chief Technology Officer of the Corporation, or in
such other office or offices to which he shall be elected by the Board of
Directors of the Corporation ("Board") with his approval, performing the duties
of such office or offices held at the time and such other duties not
inconsistent with his position as such an officer as are assigned to him by the
Board or committees of the Board. During the period of employment, Executive
shall devote his full time and attention to the business of the Corporation and
the discharge of the aforementioned duties, except for permitted vacations,
absences due to illness, and reasonable time for attention to personal affairs.

       3. OFFICE FACILITIES. During the period of employment, Executive shall
have his office where the Corporation's principal executive offices are located
from time to time, which currently are at 3900 West Innovation Street, Sioux
Falls, South Dakota, and the Corporation shall furnish Executive with office
facilities reasonably suitable to his position at such location.

       4. COMPENSATION. As compensation for his services performed hereunder,
the Corporation shall pay or provide to Executive the following:

          (a.) The Corporation shall pay Executive a salary (the "Base Salary"),
     calculated at the rate of _____________________ ($___,000.00) per annum
     (which Base Salary may be increased by the Board at any time and from time
     to time in its discretion), payable monthly, semi-monthly or weekly
     according to the Corporation's general practice for its executives, for the
     period of employment under this Agreement.

          (b.) During the period of employment, Executive shall be allowed to
     participate in such bonus and other incentive compensation programs in
     accordance with



     their terms as the Corporation may have in effect from time to time for
     its executive personnel, and all compensation and other entitlements
     earned thereunder shall be in addition to, and shall not in any way
     reduce, the amount payable as Base Salary.

          (c.) During the period of employment, Executive shall be entitled to:

               (i) participate in such retirement, investment, health (medical,
          hospital and/or dental) insurance, life insurance, disability
          insurance and accident insurance plans and programs as are maintained
          in effect from time to time by the Corporation for its salaried

               (ii) participate in other non-duplicative benefit programs which
          the Corporation may from time to time offer generally to executive
          personnel of the Corporation; and

               (iii) take vacations and be entitled to sick leave in accordance
          with the Corporation's policy for executive personnel of the

          (d.) During the period of employment, the Board from time to time in
     its discretion may grant to Executive stock options, and other rights
     related to shares of the Corporation's common stock.

       5. EFFECT OF DISABILITY AND CERTAIN HAZARDS. Executive shall not be
obligated to perform the services required of him by this Agreement during any
period in which he is disabled or his health is impaired to an extent which
would render his performance of such services hazardous to his health or life,
and relief from such obligation shall not in any way affect his rights hereunder
except to the extent that such disability may result in termination of his
employment by the Corporation pursuant to Section 6 herein.



       6. TERMINATION OF EMPLOYMENT. The employment of Executive by the
Corporation pursuant to this Agreement may be terminated prior to December 31,
1999, or any subsequent December 31 to which the end of the period of employment
may have been extended under Section 1, as follows:

          (a) In the event of Executive's death prior to said date, such
     employment shall terminate on the date of death.

          (b) Such employment may be terminated prior to said date due to
     Executive's physical or mental disability which prevents the effective
     performance by Executive of his duties hereunder on a full time basis, with
     such termination to occur on or after the time which Executive becomes
     entitled to disability compensation benefits under the Corporation's long
     term disability benefit program then in effect. Any dispute as to
     Executive's physical or mental disability shall be settled by the opinion
     of an impartial physician selected by the parties or their representatives
     or, in the event of failure to make a joint selection after request
     therefore by either party to the other, a physician selected by the
     Corporation, with the fees and expenses of any such physician to be borne
     by the Corporation.

          (c) The Corporation, by giving written notice of termination to
     Executive, may terminate such employment at any time prior to said date for
     Cause, which means that such termination must be due to (1) acts during the
     term of this Agreement (A) resulting in a felony conviction under any
     Federal or state statute (B) substantial non-performance of Executive of
     his employment duties required by this Agreement or (2) Executive willfully
     engaging in dishonesty or gross misconduct injurious to the Corporation
     during the term of this Agreement, with "Cause" to be determined in any
     case by the Board after



     reasonable written notice to Executive and an opportunity for Executive
     to be heard at a meeting of the Board and with reasonable opportunity
     (of not less than 30 days) in the case of clause (1)(B) to cease
     substantial non-performance.

          (d) The Corporation may terminate such employment at any time prior to
     said date without Cause (which shall be for any reason not covered by
     preceding subsections (a) through (c)) upon 60 days prior written notice to

          (e) In the event that a Termination Event (as that term is defined in
     the Executive Severance Agreement, dated July 25, 1995) has occured, then
     the Executive may terminate such employment according to the terms and
     conditions set forth in said Executive Severance Agreement, and shall then
     be exclusively entitled to any and all payments and benefits provided under
     said Agreement to the exclusion of any provisions contained herein.


          (a) Except as otherwise provided in subsection (b) of this Section 7,
upon termination of Executive's employment by the Corporation, all
compensation due Executive under this Agreement and under each plan or
program of the Corporation in which he may be participating at the time shall
cease to accrue as of the date of such termination (except, in the case of
any such plan or program, if and to the extent otherwise provided in the
terms of such plan or program), and all such compensation accrued as of the
date of such termination but not previously paid shall be paid to Executive
at the time such payment otherwise would be due. Unless otherwise expressly
provided in the terms of the bonus plan or program of the Corporation in
which the Executive is a participant at the time of his termination, if the
termination of Executive's employment is not for Cause,



     then a pro rata portion of the "target" full year's bonus shall be deemed
     to have accrued for the Executive under such bonus plan or program for the
     portion of the year ended on the date of the termination, which shall be
     paid to the Executive at the time bonus payment otherwise would be due.

          (b) If Executive's employment pursuant to this Agreement is terminated
     without Cause pursuant to subsection (d) of Section 6 herein, then, in
     addition to the payments required by subsection (a) of this Section 7,
     Executive shall be entitled to the vesting of all options previously
     granted but still subject to vesting, and shall receive, subject to the
     mitigation provisions of Section 11(a) below, for a period of twenty-four
     months (the "Severance Period") a cash severance payment (the "Severance
     Payment") from the Corporation. The amount of the Severance Payment shall
     be equal to the Executive's then monthly Base Salary increased by a factor
     of twenty percent (20%) to account for the Executive's loss of benefits.
     Executive shall have the right to purchase health and dental coverage under
     the Company's group policies then in effect for the Severance Period. The
     Severance Payment shall be due and payable on the 20th day of each month
     and is subject to required withholding. The Executive shall also be
     entitled to the benefits under this Section in the event the Corporation
     elects at any time not to renew or extend this Agreement pursuant to
     Section 1. The Executive shall not be entitled to a Severance Payment in
     any event if he is terminated for Cause as permitted by Section 6.

       8. CONFIDENTIAL INFORMATION. Executive shall not at any time during the
period of employment and thereafter disclose to others or use any trade secrets
or any other confidential information belonging to the Corporation or any of its
subsidiaries, including, without limitation, drawings, plans, programs,
specifications and non-public information relating to



customers of the Corporation or its subsidiaries, except as may be required
to perform his duties hereunder. The Corporation or its subsidiaries, except
as may be required to perform his duties hereunder. The provisions of this
Section 9 shall survive the termination of Executive's employment with the
Corporation, provided that after the termination of Executive's employment
with the Corporation, the restrictions contained in this Section 8 shall not
apply to any such trade secret or confidential information which becomes
generally known in the trade.

       9. PATENTS AND OTHER INTELLECTUAL PROPERTY The Corporation shall be
entitled to any and all ideas, know-how and inventions, whether patentable or
not, which Executive shall conceive, make or develop during the period of his
employment with the Corporation, relating to the business of the Corporation or
any of his subsidiaries. Executive shall, from time to time, at the request of
the Corporation, execute and deliver such instruments or documents, and shall
perform or do such acts or things, as reasonably may be requested in order that
the Corporation may have the benefit of such ideas, know-how and inventions and,
in particular, so that patent applications may be prepared and filed in the
United States Patent Office, or in appropriate places in foreign countries,
covering any of the patentable ideas on intentions covered by this Agreement as
aforesaid, including appropriate assignments vesting in the Corporation or any
of its subsidiaries (or any successor to the Corporation or any of its
subsidiaries) full title to any and all such ideas, inventions and applications.
Further, Executive will cooperate and assist the Corporation in the prosecution
of any such applications in order that patents may issue thereon.




          (a) For the first eighteen months following termination of his
     employment with the Corporation, Executive shall not be required to
     mitigate the amount of any termination benefits due him under Section 7
     herein, by seeking employment with others, or otherwise, nor shall the
     amount of such benefits be reduced or offset in any way by any income or
     benefits earned by Executive from another employer or other source during
     said period; thereafter, said termination benefits shall be reduced by
     one-half of the amount Executive may earn from any full time employment
     position or occupation. However, if Executive becomes employed, as a full
     or part time employee, or as a consultant or advisor, to any enterprise
     engaged in competition with the business then being conducted by the
     Corporation, any obligation which the Corporation otherwise would have had
     under Section 7 shall thereupon terminate and cease to be of any further
     force and effect other than to the extent theretofore performed by the

          (b) Until the period of employment expires (which for these purposes
     shall be calculated without giving effect to early termination pursuant to
     Section 6), Executive shall not enter into endeavors that are competitive
     with the business or operations of the Corporation in the lodging
     pay-per-view/guest services market, and shall not own an interest in,
     manage, operate, join, control, lend money or render financial or other
     assistance to or participate in or be connected with, as an officer,
     employee, director, partner, stockholder (expect for passive investments of
     not more than a one percent interest in the securities of a publicly held
     corporation regularly traded on a national securities exchange or in an
     over-the-counter securities market), consultant or otherwise, any
     individual, partnership, firm, corporation or other business organization
     or entity that



     engages in a business which competes with the Company in the lodging
     pay-per-view/guest services market. For these purposes, employment
     with a vendor of cable television services shall not be treated as
     competitive with the business or operations of the Corporation in the
     lodging per-view/guest services market.

          (c) The Corporation shall pay Executive's out-of-pocket expenses,
     including attorneys' fees, but not to exceed a total of $10,000 for any
     proceeding or group of related proceedings to enforce, construe or
     determine the validity of the provisions for termination benefits in
     Section 7 or 8 herein provided however, that if any arbitration or
     litigation results in a finding in favor of the Executive contrary to the
     position of the Company, then Executive will be reimbursed for all
     reasonable legal and related costs regardless of the limitation set forth
     above; and further provided that in no event will Executive be held liable
     for the legal and related costs of the Company in an event of a finding in
     favor of the company.

       11. ARBITRATION. Any dispute or controversy arising under or in
connection with the Agreement shall be settled exclusively by arbitration in the
city where the principal executive offices of the Corporation are then located,
in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator's award in any court having


          (a) This Agreement shall inure to the benefit of and shall be binding
     upon the successors and assigns of the Corporation, including any party
     with which the Corporation may merge or consolidate or to which it may
     transfer substantially all of its assets.



          (b) The rights and obligations of Executive under this Agreement are
     expressly declared and agreed to be personal, nonassignable and
     nontransferable during his life, but upon his death this Agreement shall
     inure to the benefit of his heirs, legatees and legal representatives of
     his estate.

          (c) The waiver by either party hereto of its rights with respect to a
     breach of any provision of this Agreement by the other shall not operate or
     be construed as a waiver of any rights with respect to any subsequent

          (d) No modification, amendment, addition, alteration or waiver of any
     of the terms, covenants or conditions hereof shall be effective unless made
     in writing and duly executed by the Corporation and Executive.

          (e) This Agreement may be executed in any number of counterparts, each
     of which shall be deemed an original, but all of which together will
     constitute but one and the same agreement.

          (f) This Agreement shall be construed according to the laws of the
     State of South Dakota.

          (g) If any provision of this Agreement is determined to be invalid or
     unenforceable under any applicable statute or rule of law, it is to that
     extent to be deemed omitted and it shall not affect the validity or
     enforceability of any other provision.

          (h) Any notice required or permitted to be given under this Agreement
     shall be in writing, and shall be deemed given when sent by registered or
     certified mail, postage prepaid, addressed as follows:

                If to Executive:



               If to the Corporation:       LodgeNet Entertainment Corporation
                                            3900 West Innovation Street
                                            Sioux Falls, SD 57107
                                            Attn: General Counsel

     or mailed to such other person and/or address as the party to be notified
     may hereafter have designated by notice given to the other party in a
     similar manner.

       13. PRIOR AGREEMENTS SUPERSEDED. This agreement supersedes all prior
agreements between the parties hereto with respect to the subject matter hereof
including any prior employment agreement provided however, that the Executive
Severance Agreement, dated July 25, 1995, shall remain in full force and effect
and shall exclusively govern any payments and benefits in the event that a
Termination Event (as that term is defined in said Agreement) has occurred.

           IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the date and year first above written.

                                             LodgeNet Entertainment Corporation