This agreement, effective the 28th day of October, 1996, (The “Effective Date”), by and between KCM, INC., a Maryland Corporation (hereinafter referred to as the “Employer”), and Wallace W. Birdseye of 2524 N. Quincy Street, Arlington, Virginia 22207 (hereinafter referred to by his or her surname or as the “Employee”).
Employer is engaged in the business of providing data processing consulting services to its customers. Employee desires to become engaged by Employer as a Vice President. Employer and Employee desire to enter into this Agreement to set forth the terms and conditions of such employment.
IN CONSIDERATION of the premises, the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
1. Employment. Employer agrees to employ Employee as a Vice President, and Employee accepts such employment on the terms and conditions set forth in this Agreement.
2. Term. The term of employment under this agreement begins on the Effective Date, and shall continue thereafter until expiration at midnight on 1 year from current date, unless terminated earlier pursuant to Section 17 below. The term of employment hereunder shall be automatically renewed from year to year thereafter, unless terminated sooner pursuant to Section 17 below.
3. Salary. For services rendered by the Employee under this Agreement, Employee shall be entitled to a base salary on an annualized basis of $140,000.00, which shall be payable in monthly installments of $11,666.67 or a proportionate amount for time actually worked.
4. Bonus Plan. As of January 1, 1997, employee will be eligible to receive additional compensation based on the following criteria.
4.1 Meeting projected sale forecast’s for existing services in the Washington Metropolitan area.
4.2 Meeting projected sales goals for project oriented business.
4.3 Surpassing overall corporate revenue and profitability forecasts.
Further definition of this plan will be available prior to January 1, 1997 and will involve participation by employee with the 1997 sales forecast. The targeted bonus plan will be $60,000.
5. Benefits. Subject to Employee’s insurability, Employee shall be eligible to participate in such medical, dental, life, disability, and other plans as may be made available by Employer generally to its employees, in accordance with Employer’s policies in existence and as modified from time to time.
6. Vacation. Employee is eligible for three weeks vacation annually, to be scheduled for times mutually convenient to Employee and Employer. Annual leave is accrued at a rate of 10 hours per month.
7. Other Leave. Employee shall be entitled to holiday leave and sick leave in accordance with the general policies of Employer, as such policies may he modified from time to time.
8. Expenses. Employer shall pay or reimburse Employee, upon submission of vouchers or receipts, for all reasonable, ordinary, and necessary out-of-pocket expenses for travel, meals, and lodging incurred by him directly in the course of his employment. Any extraordinary expenses must be authorized by Employer in writing.
9. Deductions. Employer is authorized to deduct from the actual compensation of Employee (i) such sums as may be required to be deducted or withheld under the provisions of any law now in effect or hereafter becoming effective during the term of this Agreement, including, but not limited to, social security and unemployment and income withholding taxes, (ii) any payments of compensation made in advance of the date(s) due to be paid to Employee, and (iii) any other amount(s) loaned Employee or otherwise due from Employee to Employer.
10. Duties. During the term of employment hereunder, Employee shall faithfully and diligently exercise his best efforts, on a full time basis, to perform such duties and