EMPLOYMENT AGREEMENT: AMATO



 



Exhibit 10.1


EMPLOYMENT AGREEMENT



          This
Employment Agreement (this “Agreement”), dated as of
August 7,
2003, is entered into between Viewpoint Corporation, a Delaware Corporation
with its principal office at 498 Seventh Avenue, New York, N.Y. 10018
(“Viewpoint”), and Jerry S. Amato (“Executive”).



          WHEREAS, Viewpoint desires to retain Executive’s services as President and
Chief Executive Officer, and Executive desires to be retained by Viewpoint to
serve as President and Chief Executive Officer of Viewpoint.



          NOW THEREFORE, for good and valuable consideration, the sufficiency of
which is hereby acknowledged by the parties, the parties hereto hereby agree as
follows:




	 	 	1. Employment; Term.
	 
	 	 	(a) Duties and Responsibilities. Subject to the terms and conditions of
this Agreement, Viewpoint hereby employs Executive, and Executive hereby
accepts employment with Viewpoint, as Chief Executive Officer. In
addition, Viewpoint shall nominate Executive for membership on the Board
of Directors (the “Board”), which shall be subject to the approval of
Viewpoint’s shareholders. Executive shall devote his full business time
and attention to the business and affairs of Viewpoint and its
subsidiaries. Notwithstanding the foregoing, Viewpoint agrees that
Executive may serve as a director of other entities, so long as such
entities are not direct or indirect competitors of Viewpoint and such
service does not otherwise interfere with Executive’s performance of his
duties hereunder. Executive shall observe and comply with Viewpoint’s
policies, rules and regulations regarding the performance of his duties,
shall use his best efforts, skills and abilities to promote Viewpoint’s
interests and shall perform his duties faithfully, competently and in
such manner as Viewpoint’s Board may from time to time reasonably direct.
	 
	 	 	(b) Duty of Loyalty. Executive will execute the “Duty of Loyalty
Agreement” that is annexed hereto as Exhibit A and is made a part of this
Agreement; provided, however, that in the event of a conflict between the
Duty of Loyalty Agreement and this Agreement, the provisions of this
Agreement shall apply.
	 
	 	 	(c) Principal Place of Employment. Executive’s principal place of
employment shall be at Viewpoint’s headquarters in New York, New York, or
at such other location as shall be mutually acceptable to Executive and
the Board.
	 
	 	 	(d) Representations. Executive affirms and represents that he is under
no obligation to any former employer or other party which is in any way
inconsistent with, or which imposes any restriction upon, Executive’s
acceptance of employment hereunder, the employment of Executive by
Viewpoint, or Executive’s undertakings under this Agreement.
	 
	 	 	(e) Executive’s employment hereunder shall commence on August 11, 2003
(the “Commencement Date”), and terminate at 12:01 a.m. on August 11,
2005, unless terminated earlier pursuant to Section 3 below.



          2. Compensation and Benefits. Viewpoint shall pay the following
compensation and provide the benefits to Executive during the Term of
Employment:




	 	 	(a) Base Salary. Executive shall receive a base salary of $395,000 per
annum (the “Base Salary”), payable in approximately equal installments in
accordance with the customary payroll practices of Viewpoint. If the
rate of Base Salary per annum paid to Executive is increased during the
Term of Employment, such increased rate shall thereafter constitute the
Base Salary for all purposes of this



 






 





	 	 	Agreement. Executive’s Base Salary shall not be decreased during the
Term of Employment without the mutual consent of Executive and Company.
	 
	 	 	(b) Signing Bonus. Viewpoint shall pay to Executive a one-time bonus of
$50,000 on the date this Agreement is executed by Executive.
	 
	 	 	(c) Bonus Compensation.




	 	 	 	 	 
	 	 	
(i)
	 	Annual Bonuses. Viewpoint and Executive will
negotiate in good faith to develop an annual performance-based
incentive bonus program for Executive individually or for
Executive as a participant in an incentive compensation plan
for senior executives.
	 	 	 	 	 
	 	 	
(ii)
	 	Profitability-Based Bonuses. Executive shall be
eligible to receive the following bonuses:




	 	 	 	 	 
	 	 	
(A)
	 	The first time Viewpoint achieves
Profitability (as defined below) during the Term of
Employment for a fiscal quarterly period, if at all,
Viewpoint will pay to Executive a bonus of $100,000
within thirty (30) days following Viewpoint’s
announcement of its financial results for such quarter.
	 	 	 	 	 
	 	 	
(B)
	 	The first time Viewpoint achieves
Profitability for two (2) consecutive fiscal quarters
during the Term of Employment, if at all, Viewpoint will
pay to Executive a bonus of $130,000 within thirty (30)
days following Viewpoint’s announcement of its financial
results for such second such quarter.
	 	 	 	 	 
	 	 	
(C)
	 	For purposes of this Section
2(c)(ii), “Profitability” means positive earnings per
share calculated before interest, depreciation,
amortization, non-cash stock-based compensation charges,
and impairment of goodwill and other intangible assets
but after accrual for performance-based any bonus(es)
described in this Section 2(c).




	 	 	(d) Option to Acquire Viewpoint Common Stock. Viewpoint will grant to
Executive an option to acquire 1,250,000 shares of Viewpoint common stock
(the “Option”) at an exercise price equal to the closing price of
Viewpoint’s common stock at the close of business on the business day
immediately preceding the Commencement Date. Fifty percent (50%) of the
shares subject to the Option will vest on the first (1st) anniversary of
the Commencement Date and the remaining fifty percent (50%) of the shares
will vest on the second anniversary of the Commencement Date. The Option
will be subject to the terms of an award agreement to be executed by
Viewpoint and Executive.
	 
	 	 	(e) Life Insurance. During the Term of Employment, Viewpoint will
reimburse Executive for the cost of acquiring a term life insurance
policy with a death benefit of $5,000,000 payable to Executive’s
beneficiaries.
	 
	 	 	(f) Automobile. Viewpoint will reimburse Executive for his reasonable
expenses associated with use of an automobile, primarily for business
purposes, in an amount not to exceed $1,500 per month throughout the Term
of Employment.
	 
	 	 	(g) Benefit Plan; Vacation. Executive shall be entitled to participate
in all benefit plans maintained for Viewpoint employees and shall be
entitled to four (4) weeks of paid vacation per annum.
	 
	 	 	(h) Withholdings and Deductions. The payment of any Base Salary, bonus
or other compensation hereunder shall be subject to income tax, social
security and other applicable withholdings, as well as such deductions as
may be required under Viewpoint’s employee benefit plans.



 






 





	 	 	(i) Disability Insurance. During the Term of Employment, Viewpoint will
provide, or reimburse Executive for premiums paid to acquire, a long-term
disability insurance policy which will provide benefits for a qualifying
disability of sixty percent (60%) of Executive’s last pre-disability Base
Salary, on an after tax basis, for the entire period of Executive’s
disability for a maximum period ending on Executive’s sixty-fifth (65th)
birthday; provided, however, that if the foregoing disability insurance
does not result in the payment of monthly disability benefits that are
greater than or equal to Executive’s monthly Base Salary compensation on
an after tax basis, Viewpoint shall pay Executive a monthly sum
representing the difference between the two amounts, which monthly
payments shall continue until the earlier of the date disability benefits
cease and the date that is twenty-four (24) months following the date the
first such payment is made.
	 
	 	 	(j) D&O Insurance; Defense and Indemnification.




	 	 	 	 	 
	 	 	
(i)
	 	During the Term of Employment, Viewpoint shall
maintain directors and officers insurance (“D&O Insurance”) in
a liability amount of no less than $15,000,000 and shall cause
Executive to be named as an additional insured under such
policy. Viewpoint also agrees to obtain tail coverage for
Executive with respect to said D&O Insurance for no less than
three (3) years after cessation of Executive’s employment.
	 	 	 	 	 
	 	 	
(ii)
	 	Viewpoint shall defend, indemnify and hold
Executive harmless, to the fullest extent permitted by law and
by Viewpoint’s by-laws, against all claims that arise from or
out of, or are related to Executive’s actions or inactions
while employed with Viewpoint (including attorneys’ fees,
judgments, fines, defense costs and amounts paid in any
settlement). For the avoidance of doubt, the foregoing
indemnification will be provided with respect to all times
during which Executive served as a director or officer of
Viewpoint, regardless of whether any claim covered by this
Section 2(j)(ii) is asserted during the Term of Employment or
after Executive’s employment ceases.




	 	 	3. Termination; Severance; Change in Control.
	 
	 	 	(a) Termination Without Cause or With Good Reason. If, at any time
during the Term of Employment, Executive’s employment is terminated by
Viewpoint without Cause (as defined below), or if Executive terminates
his employment with Viewpoint for Good Reason (as defined below),




	 	 	 	 	 
	 	 	
(i)
	 	Viewpoint will pay to Executive an amount equal
to two (2) times Executive’s then current Base Salary, which
shall be payable in a lump sum, and
	 	 	 	 	 
	 	 	
(ii)
	 	One hundred percent (100%) of the unvested
portion of the Option and all other options, if any, granted
to Executive during the Term of Employment, will immediately
vest and will remain exercisable by Executive for three (3)
months following the effective date of termination (the
“Termination Date”).
	 	 	 	 	 
	 	 	
(iii)
	 	In addition, unless otherwise prohibited by the
terms of the applicable plans, Viewpoint shall reimburse
Executive for, or pay on Executive’s behalf, the premiums
necessary to continue Executive’s participation in Viewpoint’s
welfare benefit plans for one (1) year following the
Termination Date, including, without limitation, all medical,
prescription, dental, disability, group life, accidental death
and travel accident insurance plans and programs maintained by
Viewpoint, at the level provided to Executive immediately
prior to the Change in Control; provided, however, that if
Executive becomes covered under any plans of another employer
that provide substantially similar coverage, the coverage
provided by Viewpoint pursuant to this Subsection 3(a)(iii)
will cease.



 






 




	 	 	 	 	 
	 	 	
(iv)
	 	In addition to the foregoing, Executive will be
entitled to continue his coverage under the above plans to the
extent required by the Consolidated Omnibus Budget
Reconciliation Act of 1985 “COBRA”) commencing on the first
(1st) anniversary of the Termination Date.




	 	 	(b) Termination With Cause or Without Good Reason. If, at any time
during the Term of Employment, Viewpoint terminates Executive’s
employment with Cause, or if Executive terminates his employment with
Viewpoint without Good Reason, Viewpoint will have no obligation to make
any payments to Executive under this Agreement, and the unvested portion
of the Option and all other options, if any, granted to Executive at any
time before such termination will be forfeited and will not vest and will
not be exercisable at any time by Executive.
	 
	 	 	(c) Termination in Connection with a Change in Control of Viewpoint. If,
at any time within one (1) year following a Change in Control of
Viewpoint, Executive’s employment is terminated by Viewpoint (or its
successor, as the case may be) without Cause, or by Executive for Good
Reason, then




	 	 	 	 	 
	 	 	
(i)
	 	Executive shall be entitled to a lump sum amount,
in cash and payable within ten (10) days following the
Termination Date, equal to two (2) times Executive’s Base
Salary,
	 	 	 	 	 
	 	 	
(ii)
	 	One hundred percent (100%) of the unvested
portion of the Option and all other options, if any, granted
to Executive at any time before such termination will
immediately vest and will remain exercisable by Executive for
three (3) months following the Termination Date, and
	 	 	 	 	 
	 	 	
(iii)
	 	Unless otherwise prohibited by the terms of the
applicable plans, Executive shall be entitled to continued
participation in Viewpoint’s welfare benefit plans for one (1)
year following the Termination Date, including, without
limitation, all medical, prescription, dental, disability,
group life, accidental death and travel accident insurance
plans and programs of Viewpoint, at the level provided to
Executive immediately prior to the Change in Control;
provided, however, that if Executive becomes eligible for
coverage under any plans of another employer that provide
substantially similar coverage, the coverage provided by
Viewpoint pursuant to this Subsection 3(c)(ii)(C) will cease.
In addition to the foregoing, Executive will be entitled to
continue his coverage under the above plans to the extent
required by COBRA commencing on the first (1st) anniversary of
the Termination Date.




	 	 	(d) Non-Duplication of Benefits; No Interest. In the event of the
termination of Executive’s employment, his rights under any benefit plans
in which he is a participant shall be determined in accordance with the
terms of the plans and by applicable law. Notwithstanding any other
provision in this Agreement, nothing in this Agreement shall result in a
duplication of payments or benefits provided under this Section 3, nor
shall anything in this Agreement require Viewpoint to make any payment or
to provide any benefit to Executive that Viewpoint is otherwise required
to provide under any other contract, agreement or arrangement. No
interest shall accrue on or be paid with respect to any portion of any
payments hereunder, except as required by law.
	 
	 	 	(e) General Release. No payments or benefits payable to Executive upon
the termination of his employment pursuant to this Section 3 shall be
made to Executive unless and until he executes a general release
substantially in the form attached hereto as Exhibit B.
	 
	 	 	(f) Non-Competition. The obligations of Executive under Section 12
(Non-Compete) of the Duty of Loyalty Agreement provided for in Section
1(b) above shall apply only in the event that Executive receives payments
pursuant to Section 3(a), above. In addition, Viewpoint may, at its
option, provide Executive with salary continuation payments for reasons
not covered in Section 3(a) in exchange for Executive’s



 






 





	 	 	compliance with Section 12; provided, however, that if Viewpoint does not
make such election, Section 12 shall be null and void and without further
effect.



          4. Definitions. In addition to certain terms defined elsewhere in this
Agreement, the following terms will
have the following respective meanings:




	 	 	(a) “Cause” means the occurrence of any of the following:




	 	 	 	 	 
	 	 	
(i)
	 	the willful and continuing refusal of Executive
to follow the lawful directives of the Board, provided that
such directives are consistent with Executive’s title and
position,
	 	 	 	 	 
	 	 	
(ii)
	 	conduct that is intentional and known by
Executive to be materially harmful or potentially materially
harmful to Viewpoint’s best interest,
	 	 	 	 	 
	 	 	
(iii)
	 	gross negligence in the performance of, or
willful disregard of, Executive’s obligations hereunder,
	 	 	 	 	 
	 	 	
(iv)
	 	Executive’s conviction of any felony, or
	 	 	 	 	 
	 	 	
(v)
	 	Executive’s commission of any act of dishonesty
or moral turpitude which, in the good faith opinion of the
Board, is materially detrimental to Viewpoint;




	 	 	provided, however, that in the event of a termination due to one or
more of the reasons set forth in clauses (a)(i), (ii) and/or (iii),
Executive shall be provided with a period of five (5) business days
from the date Viewpoint gives notice of such termination to
effectively cure or remedy such reason or reasons (unless such cure
or remedy is not possible).




	 	(b)	 	“Good Reason” means the occurrence of any of the following:




	 	 	 	 	 
	 	 	
(i)
	 	any material breach by Viewpoint of its
obligations under this Agreement,
	 	 	 	 	 
	 	 	
(ii)
	 	relocation of the Executive’s principal place of
employment from the City of New York, without the Executive’s
consent,
	 	 	 	 	 
	 	 	
(iii)
	 	a significant diminution of Executive’s duties
as set forth in Section 1 without Executive’s consent, or
	 	 	 	 	 
	 	 	
(iv)
	 	a failure by Viewpoint to obtain a written
agreement from any successor or assign of Viewpoint to assume
the material obligations under this Agreement upon a Change in
Control;




	 	 	provided, however, that in the event of a termination for Good
Reason, Viewpoint shall be provided with a period of five (5)
business days from the date Executive gives notice of such
termination to effectively cure or remedy such reason or reasons;
and if Viewpoint fails to cure or remedy the reason or reasons for
termination, Executive’s Good Reason termination shall be effective
as of the date the notice was given.




	(c)	 	“Change in Control of Viewpoint” means and includes each of the
following:




	 	 	 
	(i)	 	
the acquisition, in one or more transactions, of
beneficial ownership (within the meaning of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) by any person or any group of persons who constitute a
group (within the meaning of Section 13d-3 of the Exchange
Act) of any securities of Viewpoint such that, as a result




 










 




	 	 	 	 	 
	 	 	 	 	of such acquisition, such person or group beneficially owns
(within the meaning of Rule 13d-3 of the Exchange Act),
directly or indirectly, more than fifty percent (50%) of
Viewpoint’s outstanding voting securities entitled to vote on
a regular basis for a majority of the members of the Board;
	 	 	 	 	 
	 	 	
(ii)
	 	the consummation of any merger or any other
business combination, in one or more transactions, including,
but not limited to a sale of all or substantially all of the
assets of Viewpoint, other than a transaction immediately
following which the shareholders of Viewpoint who owned shares
immediately prior to the transaction continue to own, by
virtue of their prior ownership of Viewpoint shares, at least
fifty percent (50%) of the voting power, directly or
indirectly, of the surviving corporation in any such merger or
business combination; or
	 	 	 	 	 
	 	 	
(iii)
	 	the consummation of a plan of complete
liquidation of Viewpoint.




	 	 	5. Miscellaneous.
	 
	 	 	(a) Non-Assignability. Neither this Agreement nor any right or interest
hereunder shall be assignable by Executive, his beneficiaries or legal
representatives without Viewpoint’s prior written consent; provided,
however, that nothing in this Section 5(a) shall preclude Executive from
designating a beneficiary to receive any benefit payable hereunder upon
his death or incapacity.
	 
	 	 	(b) Binding Effect. Without limiting or diminishing the effect of
Section 5(a) hereof, this Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, successors,
legal representatives and assigns.
	 
	 	 	(c) Waiver. Failure to insist upon strict compliance with any of the
terms, covenants or conditions hereof shall not be deemed a waiver of
such term, covenant or condition, nor shall any waiver or relinquishment
of any right or power hereunder at any one or more times be deemed a
waiver or relinquishment of such right or power at any other time or
times.
	 
	 	 	(d) Notice. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and either delivered in
person, sent by first class certified or registered mail, postage prepaid
or sent by overnight courier, if to Viewpoint, at its principal place of
business, and if to Executive, at his home address most recently filed
with Viewpoint, or to such other address or addresses as either party
shall have designated in writing to the other party hereto.
	 
	 	 	(e) Entire Agreement; Modifications. This Agreement constitutes the
entire and final expression of the agreement of the parties with respect
to the subject matter hereof and supersedes all prior agreements, oral
and written, between the parties hereto with respect to the subject
matter hereof. This Agreement may be modified or amended only by an
instrument in writing signed by both parties hereto.
	 
	 	 	(f) Relevant Law; Venue. This Agreement shall be construed and enforced
in accordance with the internal laws of the State of New York, without
regard to the conflict of laws principles thereof, and any dispute
hereunder shall be adjudicated exclusively by the federal courts of the
Southern District of New York or, in the absence of such courts’
willingness to hear such dispute, by the state courts located in the City
of New York.
	 
	 	 	(g) Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but both of which together shall
constitute one and the same instrument.
	 
	 	 	6. Acknowledgement. Executive represents and acknowledges the following:



 






 




	 	 	(a) He has carefully read this Agreement in its entirety;
	 
	 	 	(b) He understands the terms and conditions contained herein;
	 
	 	 	(c) He has had the opportunity to review this Agreement with legal
counsel of his own choosing and has not relied on any statements made by
Viewpoint or its legal counsel as to the meaning of any term or condition
contained herein or in deciding whether to enter into this Agreement; and
	 
	 	 	(d) He is entering into this Agreement knowingly and voluntarily.



          IN WITNESS WHEREOF, Executive and the authorized representative of the
Board of Viewpoint execute and enter into this Agreement as of the date first
above written.




	 	 	 
	EXECUTIVE	 	
VIEWPOINT CORPORATION
	 
	/s/ Jerry S. Amato	 	/s/ Robert E. Rice
	
	 	


	Jerry S. Amato	 	
By: Robert E. Rice
	 	 	
       Chief Executive Officer