Document:

10-KSB--Exhibit 10.26--Rick DeVincenzo

EMPLOYMENT
AGREEMENT

        THIS
EMPLOYMENT AGREEMENT is made this 20th day of December, 2000 between U.S.
Wireless Data, Inc., a Delaware corporation (the "Company"), and Rick J.
DeVincenzo ("Executive"), an individual who presently resides at 9 Hamilton
Drive, West Windsor, NJ 08550.

        WHEREAS,
the parties hereto wish to enter into an employment agreement to document the
employment of the Executive in the "Position" described below, and to set forth
certain additional agreements between the Executive and the Company.

        NOW,
THEREFORE, in consideration of the mutual covenants, agreements and
representations contained herein, the parties hereto agree as
follows:

        
1. TERM. The Company will employ the Executive, and the Executive
will serve the Company, under the terms of this Agreement for a term of two (2)
years, commencing no later than January 2, 2001, which term shall be subject to
automatic renewal for successive one-year terms unless either party notifies the
other party of its or his intent not to renew this Agreement (which non-renewal
may be for any or no reason by either party) at least ninety (90) days prior to
the end of the applicable term or renewal term. Notwithstanding the foregoing,
the Executive’s employment hereunder may be earlier terminated, as provided
in Section 4 hereof. The term of this Agreement, as in effect from time to time
in accordance with the foregoing, shall be referred to herein as the
“Term.” The period of time between the commencement and the
termination of the Executive’s employment hereunder shall be referred to
herein as the “Employment Period.” 

        2.
EMPLOYMENT.

        
        a. Position. The Company
hereby employs the Executive for the Employment Period as its Senior Vice
President on the terms and conditions set forth in this Agreement.

        
        b. Authority and Duties.
The Executive shall perform all duties and functions and discharge all
responsibilities as are customarily performed by the Senior Vice President of a
publicly-held company and, in addition, all duties, functions and
responsibilities specified by the Chief Executive Officer of the Company to the
extent such specifications are consistent with the Executive's position as
Senior Vice President. The Executive shall report directly and be responsible to
the Chief Executive Officer of the Company. During the Employment Period, the
Executive shall devote his full business time, skill and efforts to the business
of the Company and use his best efforts in performing services for the Company.
The Executive shall work out of the Company's offices located in the New York
City metropolitan area; provided, however, the Executive shall be required to
travel in performing services under this Agreement and to provide services to
the Company from time to time at other locations to the extent required by the
Company's Board of Directors or Chief Executive Officer. Executive will not be
required to relocate his residence outside of the New York City Metropolitan
area.

        3.
COMPENSATION AND BENEFITS.

        
        a. Salary. During the
Employment Period, the Company shall pay to the Executive, as compensation for
the performance of his duties and obligations under this Agreement, a base
salary at the rate of $200,000 per annum, payable in arrears in accordance with
the normal payroll practices of the Company in effect from time to time. The
present normal payroll practices of the Company provide for base salary payments
not less frequently than twice each month. Such base salary shall be subject to
annual review after each year worked with the first such review to take place
during the first calendar quarter of 2002. Each party agrees that there has been
no promise or inducement to Executive that his base salary will be
increased.

        
        b. Annual Bonus. During
the Employment Period, the Executive shall have the opportunity to earn an
annual bonus. The Company, through its Chief Executive Officer, acting on behalf
of the Company, and the Executive, shall endeavor to mutually establish from
time to time certain corporate and/or individual performance goals for
Executive, it being understood and agreed by both parties to this Agreement that
the Company and its officers shall not have any liability to the Executive for
or in respect of a bonus or the failure to pay a bonus if the parties fail to
agree on said goals. Without in any way limiting the discretion of the Chief
Executive Officer of the Company to determine whether to pay or not pay bonuses
and to determine the amount of any such bonuses, the Company has set a minimum
guaranteed bonus of $40,000 for the Executive for the first full year of
employment and an annual target bonus for successive years of $40,000. Such
bonuses, if and to the extent payable, will be paid after the expiration of each
anniversary year by the end of the first calendar quarter of the following
anniversary year.

        
        c. Equity Participation.
The Company's Board of Directors has approved for the Executive to be granted
options to purchase one hundred and fifty thousand (150,000) shares of common
stock of the Company at an exercise price per share equal to the closing price
of the Company's stock on the Executive's first day of employment, subject to
the provisions of the Company's "2000 Stock Option Plan". The aforementioned
options will vest at the rate in accordance with the 2000 Stock Option Plan.
Upon the occurrence of a Change in Control, as such term is defined in Section
4.b.(3) below, all outstanding options granted by the Company to the Executive
during the Employment Period, shall become vested and exercisable, subject to
the other terms of the option(s).

        
        d. Other Benefits. During
the Employment Period, the Executive shall be entitled to participate in all of
the employee benefit plans, programs and arrangements of the Company in effect
during the Employment Period which are generally available to senior executives
of the Company, subject to and on a basis consistent with the terms, conditions
and overall administration of such plans, programs and arrangements, as amended
from time to time. In addition, during the Employment Period, the Executive
shall be entitled to fringe benefits and perquisites comparable to those
generally available to all other senior executives of the Company, as amended
from time to time.

        
        e. Business Expenses.
During the Employment Period, the Company shall reimburse the Executive for all
documented reasonable business expenses incurred by the Executive in the
performance of his duties under this Agreement, in accordance with the Company's
policies as in effect from time to time.

        
        f. Indemnification. The
Company shall indemnify Executive for losses suffered by Executive arising out
of third party lawsuits relating directly to his employment by the Company to
the extent such indemnification is permitted by the applicable law of the state
in which the Company is incorporated or organized and consistent with and in
accordance with the Company's articles or certificate of incorporation and
by-laws; provided, however, Executive shall promptly notify Company of any such
lawsuit and cooperate with Company in connection therewith.

2

        4.
TERMINATION OF EMPLOYMENT.

        
        a. Termination for Cause.
The Company may at any time terminate the Executive's employment hereunder for
cause. For purposes of this Agreement and subject to the Executive's opportunity
to cure to the extent provided in Section 4.c. hereof, the Company shall have
"cause" to terminate the Executive's employment hereunder if such termination
shall be the result of:

        
                (1)
Fraud in connection with the Executive's performance hereunder;

        
                (2)
Dishonesty in connection with the Executive's performance hereunder except to
the extent the Executive proves such dishonesty was both unintentional and
covered only a matter which was de minimis;

        
                (3)
The failure by the Executive to perform his material duties hereunder or any
other material breach by Executive of this Agreement;

        
                (4)
The failure by the Executive to follow, in a material manner, the lawful
directions of or policies established by the Board of Directors or the Chief
Executive Officer of the Company unless the tasks are of the type which could
not reasonably be required of Executive pursuant to this Agreement; 

        
                (5)
The conviction for, or plea of nolo contendere to, a charge of commission
of a felony or crime involving moral turpitude;

        
                (6)
The Executive's performance of any services under this Agreement while under the
influence of drugs, alcohol or any controlled substance except, with respect to
controlled substances only, to the extent Executive proves (a) taking any
controlled substance was prescribed by a medical doctor to treat a medical
problem, (b) such controlled substance was used only in accordance with said
doctor’s instructions, and (c) taking such controlled substance does not
and did not adversely affect Executive’s job performance during more than a
de minimis period of time; or 

        
                (7)
The Executive acting in a manner, which damages or could reasonably be expected
to damage the business or reputation of the Company.

        
                The
parties agree that each of the foregoing breaches, events, crimes, behaviors,
acts, inactions or occurrences constitutes independent grounds for
“cause” and the failure of any breach, event, crime, behavior, act,
inaction or occurrence to constitute “cause” under any paragraph of
this Section 4.a. shall not prevent that same breach, event, crime, behavior,
act, inaction or occurrence from constituting “cause” under a
different paragraph of this Section 4.a. 

        
        b. Termination for Good
Reason. The Executive shall have the right at any time to terminate his
employment with the Company for any reason upon thirty (30) days' prior written
notice. For purposes of this Agreement and subject to the Company's opportunity
to cure as provided in Section 4.c. hereof, the Executive shall have "good
reason" to terminate his employment hereunder at any time during his employment
if such termination shall be the result of:

3

        
                (1)
A breach by the Company of the compensation and benefits provisions set forth in
Section 3 hereof;

        
                (2)
A material breach by the Company of any other material term of this Agreement;
or

        
                (3)
A "Change in Control" of the Company. However, the Executive's election to
terminate this agreement due to a Change in Control shall not be deemed for
“good reason” if such election to terminate takes place either prior
to the 181st day following the Change in Control or after the
365th day following the Change in Control. 

        
                For
purposes hereof, a "Change in Control" of the Company shall occur or be deemed
to have occurred only if any of the following events occurs:

	 	
(i)
any “person,” as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(other than the Company, any trustee or other fiduciary holding securities under
an employee benefit plan of the Company, or any corporation owned directly or
indirectly by the stockholders of the Company in substantially the same
proportion as the ownership of stock of the Company), is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing more than 50%
of the combined voting power of the Company’s then outstanding securities;
or

	 	
(ii)
individuals who, as of June 1, 2000 (the “Effective Date”), constitute
the Board of Directors of the Company (as of the Effective Date, the
“Incumbent Board”) cease for any reason to constitute at least a
majority of the Board of Directors of the Company provided that any person
becoming a director subsequent to the date hereof whose election, or nomination
for election by the Company’s stockholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board (other
than an election or nomination of an individual whose initial assumption of the
office is in connection with an actual or threatened election contest relating
to the election of the directors of the Company, as such terms are used in Rule
14a-11 of Regulation 14A under the Exchange Act) shall be, for purposes of this
Agreement, considered as though such person were a member of the Incumbent
Board; or

4

	 	
(iii)
the stockholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than (A) a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 60% of the
combined voting power of the voting securities of the company or such surviving
entity outstanding immediately after such merger or consolidation or (B) a
merger or consolidation effected to implement a recapitalization of the Company
(or similar transaction) in which no “person” (as hereinabove defined)
acquires more than 50% of the combined voting power of the Company’s then
outstanding securities; or

	 	
(iv)
the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or dispositions by the Company of all or
substantially all of the Company’s assets.

        
        c. Notice and Opportunity to
Cure. It shall be a condition precedent to the Company's right to terminate
the Executive's employment for "cause" and the Executive's right to terminate
his employment for "good reason" that (1) the party seeking the termination
shall first have given the other party written notice stating with reasonable
specificity the reason for the termination ("breach") and (2) if such breach is
susceptible of cure or remedy, a period of ten (10) days from and after the
giving of such notice shall have elapsed without the breaching party having
effectively cured or remedied such breach during such 10-day period, unless such
breach cannot be cured or remedied within ten (10) days, in which case the
period for remedy or cure shall be extended for a reasonable time (not to exceed
an additional ten (10) days) provided the breaching party has made and continues
to make a diligent effort to effect such remedy or cure. Notwithstanding
anything contained in this Agreement, the parties agree that any breach, event,
crime, behavior, action, inaction or occurrence constituting "cause" (or which
would constitute "cause" after the giving of notice) under Section 4.a. (1),
(2), (5), (6) or (7) shall not under any circumstances be susceptible or capable
of cure or remedy under this Section 4.c.

        
        d. Termination Upon Death or
Permanent and Total Disability. The Employment Period shall automatically
without further action be terminated by the death of the Executive. The
Employment Period may be terminated by the Company at any time if the Executive
shall be rendered incapable of performing his duties to the Company at the same
level by reason of any medically determined physical or mental impairment that
(i) can reasonably be expected to result in death or (ii) can reasonably be
expected to last or has lasted for a period of three (3) or more consecutive
months or for a period of four (4) or more months during any twelve (12) month
period from the first date of the Executive's impairment or absence or projected
absence due to the disability ("Disability"). If the Employment Period is
terminated by reason of a Disability of the Executive, the Company shall give
thirty (30) days advance written notice to that effect to the
Executive.

        5.
CONSEQUENCES OF TERMINATION.

        
        a. Termination Without Cause
or for Good Reason. In the event of termination of the Executive's
employment hereunder by the Company without "cause" (other than upon death or
Disability or non-renewal) or by the Executive for "good reason" (each as
defined in Section 4 hereof), subject to Section 8 the Executive shall be
entitled to only the following pay and benefits:

5

        
                (1)
Severance Pay. Executive shall receive severance payments for a 365-day period
after the termination date or until the Executive obtains new fulltime
employment (the "Severance Period"), whichever is sooner, in regular payroll
increment payments with each such payment to be equal to the base salary
payments which would have been received under this Agreement on each such date
if Executive's employment had not been terminated. In the event the Executive is
terminated without cause and secures full-time employment at a salary that is
less than that which he was scheduled to be paid for the current year of
employment at the Company, the Executive will be paid any such shortfall by the
Company for the remainder of the Severance Period on a prorated basis. This
provision will not apply in the event the Executive terminates this agreement.
Additionally, any unvested options awarded to the Executive in the Company's
stock option plan will fully vest immediately on the date of termination. In the
event the Executive terminates this agreement for "good reason" due to a Change
in Control as explained in paragraph 4b of this agreement, the Executive will
receive the severance pay as outlined above, plus an amount equal to the
Executive's last annual bonus divided by the number of pay periods in the
calendar year, paid in regular payroll increments during the Severance Period.
Any accrued but unpaid bonus will be paid.

        
                (2)
Benefits Continuation. Continuation for the Severance Period of coverage under
the group medical care, disability and life insurance benefit plans or
arrangements in which the Executive is participating at the time of termination;
provided, however, that the Company's obligation to provide such coverages shall
be terminated if the Executive obtains comparable substitute coverage from
another employer at any time during the Severance Period. The Executive shall be
entitled, at the expiration of the Severance Period, to elect continued medical
coverage in accordance with Section 4980B of the Internal Revenue Code of 1986,
as amended (or any successor provision thereto).

        
        b. Other Terminations. In
the event of termination of the Executive's employment hereunder for any reason
other than (a) without "cause" or (b) for "good reason" (i.e., termination for
death, Disability, with "cause" or without "good reason"), or if Executive makes
the election provided for in Section 8, or if the Term is not renewed, the
Executive shall be paid base salary only through the date of termination or
non-renewal, and Executive shall not be entitled to any severance, bonus or
other pay, or any benefits continuation rights, except for benefits continuation
rights as may otherwise be provided (e.g., Cobra benefits) under the applicable
benefit plans relating to the Executive; provided, however, that upon
termination for death or Disability, the Company in its sole and absolute
discretion, will grant to Executive or his estate a pro rated bonus of up to the
amount provided in connection with a termination without "cause". Any accrued
but unpaid bonus will be paid.

        
6. CONFIDENTIALITY. The Executive agrees that he shall not at any
time during the Term hereof or at any time thereafter for any reason, in any
fashion, form or manner, either directly or indirectly, divulge, disclose or
communicate to any person, firm, corporation or other business entity, in any
manner whatsoever, any confidential information or trade secrets concerning the
business of the Company, including, without limiting the generality of the
foregoing, the techniques, methods or systems of its operation or management,
any information regarding its financial matters, or any other information
concerning the business of the Company, its manner of operation, its plans or
other data. The provisions of this Section 6 shall not apply to (i) information
that is public knowledge other than as a result of disclosure by the Executive
in breach of this Section 6; or (ii) information disclosed by Executive under a
requirement of law or as directed by applicable legal authority having
jurisdiction over the Executive. 

6

        
7. INVENTIONS. The Executive is hereby retained in a capacity such
that the Executive’s responsibilities include the making of technical and
managerial contributions of value to the Company. The Executive hereby assigns
to Company all right, title and interest in such contributions and inventions
made or conceived by the Executive alone or jointly with others during the
Employment Period which relate to the business of the Company. This assignment
shall include, without limitation, (a) the right to file and prosecute patent
applications on such inventions in any and all countries, (b) the patent
applications filed and patents issuing thereon, and (c) the right to obtain
copyright, trademark or trade name protection for any such work product. The
Executive shall promptly and fully disclose all such contributions and
inventions to the Company and assist the Company in obtaining and protecting the
rights therein (including patents thereon), in any and all countries; provided,
however, that said contributions and inventions will be the property of Company,
whether or not patented or registered for copyright, trademark or trade name
protection, as the case may be. 

        
8. NON-COMPETITION. The Executive agrees that he shall not during the
Employment Period and, if applicable, the Severance Period, without the approval
of the Board of Directors of the Company, directly or indirectly, alone or as
partner, joint venturer, officer, director, employee, consultant, agent,
independent contractor, stockholder or otherwise (other than as provided below),
engage in any “Competitive Business” within the United States. For
purposes of the foregoing, the term “Competitive Business” shall mean
any business involved in development, marketing, sale or support of products or
services (a) which can reasonably be expected to cause customers not to use the
Company’s or any of its subsidiaries’ or affiliates’ products or
services or (b) which are similar to or competitive with products or services
provided or supplied by the Company or any of its subsidiaries or affiliates.
Notwithstanding the foregoing, the Executive shall not be prohibited during the
non-competition period applicable above from acting as a passive investor by
owning not more than one percent (1%) of the issued and outstanding capital
stock of any publicly-held company. The Executive, at his option, may elect to
eliminate the above restrictions in this Section 8 only during the Severance
Period but any such election shall, without further action, be deemed an
automatic and irrevocable relinquishment by Executive and termination of all of
his rights to pay and benefits under Section 5.a. During the Employment Period
and the Severance Period, if applicable, and for a period of one (1) year after
the later of expiration of the Employment Period and the Severance Period, the
Executive shall not, without the prior written consent of the Board of Directors
of the Company, directly, or indirectly, alone or as partner, joint venturer,
officer, director, employee, consultant, agent, independent contractor,
stockholder or otherwise, (a) solicit or induce any employee, independent
contractor or consultant of the Company or any current or future subsidiary or
affiliate thereof to terminate or reduce his or her employment or engagement
with the Company or any current or future subsidiary or affiliate thereof or (b)
solicit the business of or any business from any current or future customer or
supplier to the Company or any current or future subsidiary or affiliate thereof
or induce any such customer or supplier not to do business with or reduce its
business transactions with the Company or any subsidiary or affiliate thereof. 

        
9. BREACH OF RESTRICTIVE COVENANTS; SEVERABILITY. The parties hereto
intend all provisions of this Agreement to be enforced to the fullest extent
permitted by law. The parties agree that Sections 6, 7 and 8 are reasonable and
necessary to protect the Company’s interests and properties and that a
breach or violation of Sections 6, 7 or 8 hereof will result in immediate and
irreparable injury and harm to the innocent party, who shall have, in addition
to any and all remedies of law and other consequences under this Agreement, the
right to an injunction, specific performance or other equitable relief to
prevent the violation of the covenant or agreement hereunder. The parties agree
that each of such covenants and agreements is separate, distinct and severable
not only from the other of such covenants and agreements but also from the other
and remaining provisions of this Agreement; that the unenforceability of any
such covenant or agreement shall not affect the validity or enforceability of
any other such covenants or agreements or any other provision or provisions of
this Agreement. Should a court of competent jurisdiction determine that the
scope of any provision of this Agreement is too broad to be enforced as written,
the parties intend that the court should reform the provision to such narrower
scope as it determines to be enforceable. If, however, any provision of this
Agreement is held to be illegal or unenforceable or by its severance, invalid or
unenforceable under present or future law, such provision shall be fully
severable from this Agreement, this Agreement shall be construed and enforced as
if such illegal, invalid or unenforceable provision were never a part hereof and
the remaining provisions of this Agreement shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision or
by its severance. 

7

        
10. NOTICE. For the purposes of this Agreement, notices, demands and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given within one business day of dispatch if
sent by hand delivery or reputable overnight courier, addressed as follows: 

        
        a.       If to the Company, to:

            
        U.S. Wireless Data, Inc.

            
        750 Lexington Avenue

            
        New York, New York 10022

            
        Attention:  Chief Executive Officer

        
        b.       If to the Executive, to:

            
        Rick J. DeVincenzo

            
        9 Hamilton Drive

            
        West Windsor, NJ 08550

or to such other respective
addresses as the parties hereto shall designate to the other by like notice,
provided that notice of a change of address shall be effective only upon receipt
thereof. 

        11.
JURISDICTION; VENUE; LEGAL FEES; ETC.

        
        a. EXECUTIVE HEREBY IRREVOCABLY
CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED
WITHIN THE SOUTHERN DISTRICT OF NEW YORK OR NEW YORK COUNTY IN CONNECTION WITH
ANY DISPUTE OR LEGAL PROCEEDING ARISING UNDER THIS AGREEMENT. EXECUTIVE HEREBY
WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE CONDUCT OF ANY ACTION OR PROCEEDING
IN ANY SUCH COURT BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS, WAIVES
PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT, AND CONSENTS THAT ALL SERVICE
OF PROCESS MAY BE MADE BY MAIL OR COURIER SERVICE DIRECTED TO IT AT THE ADDRESS
DESIGNATED FOR IT SET FORTH IN THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE
DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT OR TEN (10) DAYS AFTER
THE SAME SHALL HAVE BEEN POSTED. EACH OF THE PARTIES HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT. EACH OF THE PARTIES CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF EITHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE OTHER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVERS.

8

        
        b. THE PREVAILING PARTY IN ANY
PROCEEDING BROUGHT UNDER THIS AGREEMENT SHALL BE REIMBURSED BY THE OTHER PARTY
FOR ALL COSTS, FEES AND EXPENSES, INCLUDING WITHOUT LIMITATION, ATTORNEYS' FEES
AND EXPENSES, INCURRED BY SUCH PREVAILING PARTY IN PREPARATION FOR, IN THE
INVESTIGATION OF, AND/OR OTHERWISE DIRECTLY OR INDIRECTLY IN CONNECTION WITH ANY
SUCH PROCEEDING.

        12.
WAIVER OF BREACH. Any waiver of any breach of the Agreement shall not be
construed to be a continuing waiver or consent to any subsequent breach on the
part either of the Executive or of the Company.

        13.
NON-ASSIGNMENT; SUCCESSORS. Executive may not assign or in any way
transfer his rights or delegate or in any way transfer his duties or obligations
under this Agreement. This Agreement shall inure to the benefit of the
successors and assigns of the Company and this Agreement shall inure to the
benefit of and be binding upon the heirs, representatives, estate and successors
of the Executive.

        
14. WITHHOLDING OF TAXES. All payments required to be made by the
Company to the Executive under this Agreement shall be subject to the
withholding of such amounts, if any, relating to tax, and other payroll
deductions as the Company may reasonably determine it should withhold pursuant
to any applicable law or regulation or as agreed to by Executive and Company. 

        15.
COUNTERPARTS. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

        16.
GOVERNING LAW. Except as set forth in Section 3.f., this Agreement shall
be construed, interpreted and enforced in accordance with the laws of the State
of New York, without giving effect to the conflict of law principles thereof.
The parties have selected a New York choice of law for this Agreement because
the Company's offices are located in New York.

        
17. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
by the Company and the Executive with respect to the subject matter hereof
(except with respect to the stock options referred to in Section 3.c. which,
except for the last sentence of Section 3.c., shall not be governed by this
Agreement but shall be evidenced by a separate agreement between the parties)
and supersedes any and all prior agreements or understandings between the
Executive and the Company with respect to the subject matter hereof, whether
written or oral. This Agreement may be amended or modified only by a written
instrument executed by the Executive and the Company. 

9

        18.
CAPTIONS. Paragraph captions contained in this Agreement are inserted
only as a matter of convenience and for reference and in no way define, limit or
extend or describe the scope of this Agreement or the intent of any provision
hereof.

        
19. LEGAL COUNSEL. Each party hereto has retained counsel in
connection with the drafting and negotiation of this Agreement . Each party
hereby waives any right, claim or defense he may have that any provision of this
Agreement or that any provision thereof is unenforceable, illegal, invalid or
unconscionable arising out of or relating to his failure to retain counsel in
connection with this transaction. 

        20.
 AGREEMENT NOT TO BE CONSTRUED AGAINST DRAFTSPERSON. This Agreement shall
be construed without giving effect or regard to any principle that a contract
should be construed against its draftsperson.

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
referenced above.

        
                
                
                
                
                
                
                U.S.
WIRELESS DATA, INC.

        
                
                
                
                
                
                
                
By: _____________________________

        
                
                
                
                
                
                
                
Name:  Dean Leavitt

        
                
                
                
                
                
                
                
Title:    Chairman and CEO

        
                
                
                
                
                
                
                
________________________________

        
                
                
                
                
                
                
                
Rick J. DeVincenzo

1010-KSB--Exhibit 10.27--Dean Leavitt

EMPLOYMENT
AGREEMENT

        THIS
EMPLOYMENT AGREEMENT is made this 10th day of May 2001 between U.S. Wireless
Data, Inc., a Delaware corporation (the “Company”), and Dean Michael
Leavitt (the “Executive”).

        WHEREAS,
the parties hereto wish to enter into an employment agreement to document the
employment of the Executive as Chairman and Chief Executive Officer of U.S.
Wireless Data, Inc., and to set forth certain additional agreements between the
Executive and the Company.

        NOW,
THEREFORE, in consideration of the mutual covenants and representations
contained herein, the parties hereto agree as follows:

        1.
TERM. The Company will employ the Executive, and the Executive will serve
the Company, under the terms of this Agreement for an initial term of three (3)
years, commencing on the date hereof. Effective as of the expiration of such
initial three-year term and as of each anniversary date thereof, the term of
this Agreement shall be extended for an additional twelve (12) month period
unless, not later than one (3) months prior to each such respective date, the
Company shall have given notice to the Executive, or the Executive shall have
given notice to the Company that the term shall not be so extended.
Notwithstanding the foregoing, the Executive’s employment hereunder may be
earlier terminated, as provided in Section 4 hereof. The term of this Agreement,
as in effect from time to time in accordance with the foregoing, shall be
referred to herein as the “Term.” The period of time between the
commencement and the termination of the Executive’s employment hereunder
shall be referred to herein as the “Employment Period.” 

        2.
EMPLOYMENT.

        
        a. Positions and Reporting;
Directors. The Company hereby employs the Executive for the Employment
Period as its Chairman and Chief Executive Officer on the terms and conditions
set forth in this Agreement. Throughout the Employment Period, the Executive
shall have the right to sponsor up to three Board members for the consideration
of the Board, and the Company shall use its best efforts to include such
nominees on its slate of nominees at the shareholders meeting immediately
following the Executive's sponsorship of such nominees, if they are reasonably
acceptable to the Board.

        
        b. Authority and Duties.
The Executive shall exercise such authority, perform such executive duties and
functions and discharge such responsibilities as are reasonably associated with
the position of Chairman and Chief Executive Officer of a publicly-held company.
Without limiting the generality of the foregoing, the Executive shall report
directly and be responsible only to the Board of Directors of the Company.
During the Employment Period, the Executive shall devote his full business time,
skill and efforts to the business of the Company. Notwithstanding the foregoing,
the Executive may (i) make and manage passive personal business investments of
his choice (in the case of publicly held corporations not to exceed 1% of the
outstanding voting stock) and serve in any capacity with any civic, educational
or charitable organization, or any trade association, without seeking or
obtaining approval by the Board, provided such activities and service do not
materially interfere or conflict with the performance of his duties hereunder,
and (ii) with the approval of the Board, which approval shall not be
unreasonably withheld, serve on the boards of directors of other corporations.

        3.
COMPENSATION AND BENEFITS.

        
        a. Salary. During the
Employment Period, the Company shall pay to the Executive, as compensation for
the performance of his duties and obligations under this Agreement, a base
salary at the rate of $250,000 per annum, payable in arrears not less frequently
than bi-monthly in accordance with the normal payroll practices of the Company.
Such base salary shall be subject to review each year for possible increase by
the Board, but shall in no event be decreased from its then-existing level
during the Employment Period.

        
        b. Annual Cash Bonus.
During the Employment Period, the Executive shall have the opportunity to earn
an annual cash bonus. The payment of any annual bonus shall be contingent upon
the achievement of certain corporate and/or individual performance goals
established by the Board in its discretion. The Executive's cash bonus target
for the first year shall be 100% of the Executive's base salary or $250,000.
Such cash bonus shall be subject to review each year for possible increase by
the Board, but shall in no event be decreased from its then-existing level
during the Employment Period.

        
        c. Annual Option Bonus.
During the Employment Period, the Executive shall have the opportunity to earn
an annual stock option bonus. The payment of any such stock option bonus shall
be contingent upon the achievement of certain corporate and/or individual
performance goals established by the Board in its discretion. Upon the
occurrence of a Change of Control, as such term is defined in Section 4(e)
below, all outstanding options granted by the Company to the Executive during
the Employment Period shall become vested and exercisable, subject to the other
terms of the option(s).

        
        d. Other Benefits. During
the Employment Period, the Executive shall be entitled to participate in all of
the employee benefit plans, programs and arrangements of the Company in effect
during the Employment Period which are generally available to senior executives
of the Company, subject to and on a basis consistent with the terms, conditions
and overall administration of such plans, programs and arrangements. In
addition, during the Employment Period, the Executive shall be entitled to
fringe benefits and perquisites comparable to those of other senior executives
of the Company.

        
        e. Business Expenses.
During the Employment Period, the Company shall reimburse the Executive for all
documented reasonable business expenses incurred by the Executive in the
performance of his duties under this Agreement, in accordance with the Company's
policies as such may be in effect from time to time.

        
        f. Indemnification.
During the Employment Period and thereafter, the Company shall indemnify the
Executive to the fullest extent permitted by applicable law. The Company shall
enter into an Indemnification Agreement with Executive ("Indemnification
Agreement"), the terms of which shall govern Executive's rights to
indemnification. At all times throughout the Employment Period, the Company
shall maintain director and officer insurance in the amount of no less than $5
million and shall maintain adequate cash reserves to insure that the Company is
capable of paying the premium(s) for such policy.

2

        4.
TERMINATION OF EMPLOYMENT.

        
        a. Termination for Cause.  The Company may terminate the Executive's employment hereunder
for cause.  For purposes of this Agreement and subject to the Executive's opportunity to cure as provided in
Section 4(c) hereof, the Company shall have "cause" to terminate the Executive's employment hereunder if such
termination shall be the result of:

        
                (1)
Willful fraud or dishonesty in connection with the Executive's performance
hereunder;

        
                (2)
The failure by the Executive to substantially perform his duties hereunder;

        
                (3)
Failure to follow the reasonable directions of the Board of Directors consistent
with this Agreement; or

        
                (4)
The conviction for, or plea of nolo contendere to, a charge of commission
of a felony.

        
        b. Termination for Good
Reason. The Executive shall have the right at any time to terminate his
employment with the Company at any time and for any reason. For purposes of this
Agreement and subject to the Company's opportunity to cure as provided in
Section 4(c) hereof, the Executive shall have "good reason" to terminate his
employment hereunder if such termination shall be the result of:

        
                (1)
A diminution during the Employment Period in the Executive's duties,
responsibilities or title as set forth in Section 2 hereof;

        
                (2)
A breach by the Company of the compensation and benefits provisions set forth in
Section 3 hereof;

        
                (3)
A notice of termination by the Executive under Section 4(c) hereof within six
(6) months following the occurrence of a Change in Control (as defined in
Section 4(e) hereof; or

        
                (4)
A material breach by the Company of any other term of this Agreement.

        
                (5)
The Board consistently rejects Executive's reasonable business proposals.

3

        
        c. Notice and Opportunity to
Cure. Notwithstanding the foregoing, it shall be a condition precedent to
the Company's right to terminate the Executive's employment for "cause" and the
Executive's right to terminate his employment for "good reason" that (1) the
party seeking the termination shall first have given the other party written
notice stating with specificity the reason for the termination ("breach") and
(2) if such breach is susceptible of cure or remedy, a period of thirty (30)
days from and after the giving of such notice shall have elapsed without the
breaching party having effectively cured or remedied such breach during such
30-day period, unless such period cannot be cured or remedied within thirty (30)
days, in which case the period for remedy or cure shall be extended for a
reasonable time (not to exceed an additional thirty (30) days) provided the
breaching party has made and continues to make a diligent effort to effect such
remedy or cure.

        
        d. Termination Upon Death or
Permanent and Total Disability. The Employment Period shall be terminated by
the death of the Executive. The Employment Period may be terminated by the
Company if the Executive shall be rendered incapable of performing his duties to
the Company by reason of any medically determined physical or mental impairment
that can be expected to result in death or that can be expected to last for a
period of three (3) or more consecutive months from the first date of the
Executive's absence due to the disability ("Disability"). If the Employment
Period is terminated by reason of a Disability of the Executive, the Company
shall give thirty (30) days advance written notice to that effect to the
Executive.

        
        e. Definition of Change in
Control. A "Change in Control" shall be deemed to have taken place if the
following events occur:

        
                (1)
Any "person," as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (other than the
Company, any trustee or other fiduciary holding securities under an employee
benefit plan of the Company, or any corporation owned directly or indirectly by
the stockholders of the Company in substantially the same proportion as the
ownership of stock of the Company), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 50% of the
combined voting power of the Company’s then outstanding securities; or

        
                (2)
Individuals who, as of the date hereof (the "Effective Date"), constitute the
Board of Directors of the Company (as of the Effective Date, the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board
of Directors of the Company provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by the Executive shall be, for
purposes of this Agreement, considered as though such person were a member of
the Incumbent Board; or 

        
                (3)
The stockholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than (A) a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 60% of the
combined voting power of the voting securities of the company or such surviving
entity outstanding immediately after such merger or consolidation or (B) a
merger or consolidation effected to implement a recapitalization of the Company
(or similar transaction) in which no “person” (as hereinabove defined)
acquires more than 50% of the combined voting power of the Company’s then
outstanding securities; or 

4

        
                (4)
The stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or dispositions by the Company of all or
substantially all of the Company's assets.

        5.
CONSEQUENCES OF TERMINATION.

        
        a. Termination Without Cause
or for Good Reason. In the event of termination of the Executive's
employment hereunder by the Company without "cause" (other than upon death or
Disability) or by the Executive for "good reason" (each as defined in Section 4
hereof), the Executive shall be entitled to the following severance pay and
benefits:

        
                (1)
Severance Pay. If terminated during the initial three-year Term, or any
extension Term, Executive shall receive severance payments for the remainder of
the Term or any extension Term in regular payroll increment payments; however,
in no event shall the Executive receive severance payments for a period less
than eighteen months following such termination (the “Severance
Period.”) The amount of severance payments throughout the entire Severance
Period shall be at a rate of the Executive’s base salary at the time of
termination. In the event the Executive terminates this agreement for “good
reason” due to a Change in Control as defined in section 4e hereof, the
Executive shall be paid by the Company the severance pay as outlined above, plus
an amount equal to the Executive’s most recent annual cash bonus. Such cash
bonus shall be divided by the number of months remaining in the Severance Period
with the quotient being added to each regular payroll payment to the Executive
throughout the Severance Period. In addition, any accrued but unpaid bonus shall
be paid in full. 

        
                (2)
Benefits Continuation. Continuation for the Severance Period of coverage under
the group medical care, disability and life insurance benefit plans or
arrangements in which the Executive is participating at the time of termination;
provided, however, that the Company’s obligation to provide such coverage
shall be terminated if the Executive obtains comparable substitute coverage from
another employer at any time during the Severance Period. The Executive shall be
entitled, at the expiration of the Severance Period, to elect continued medical
coverage in accordance with Section 4980B of the Internal Revenue Code of 1986,
as amended (or any successor provision thereto); and 

        
                (3)
Stock Options and Warrants. Any Options or Warrants to purchase shares of the
Company’s Common Stock held by the Executive immediately prior to
termination of employment within six months of a Change of Control or upon a
termination by the Company without Cause or by Executive for Good Reason shall
become immediately vested and exercisable, subject to the other terms of the
Warrant itself. 

        
        a. Other Terminations. In
the event of termination of the Executive’s employment hereunder for any
reason other than those specified in Section 5(a) hereof, the Executive shall be
paid salary through the date of termination except as may otherwise be provided
under award agreements relating to the Executive or applicable law. In addition,
the Executive shall not be entitled to any severance, bonus or other pay, or any
benefits continuation rights, except for benefits continuation rights as may
otherwise be provided (e.g., Cobra benefits) under the applicable benefit plans
relating to the Executive; provided, however, that upon termination for death or
Disability, the Company in its sole and absolute discretion, will grant to
Executive or his estate a pro rated bonus of up to the amount provided in
connection with a termination without “cause”. Any accrued but unpaid
bonus will be paid. 

5

        6.
CONFIDENTIALITY. The Executive agrees that he will not at any time during
the Term hereof or at any time for a period of 3 years thereafter for any
reason, in any fashion, form or manner, either directly or indirectly, divulge,
disclose or communicate to any person, firm, corporation or other business
entity, in any manner whatsoever, any confidential information or trade secrets
concerning the business of the Company, including, without limiting the
generality of the foregoing, the techniques, methods or systems of its operation
or management, any information regarding its financial matters, or any other
material information concerning the business of the Company, its manner of
operation, its plans or other material data. The provisions of this Section 6
shall not apply to (i) information that is public knowledge other than as a
result of disclosure by the Executive in breach of this Section 6; (ii)
information disseminated by the Company to third parties in the ordinary course
of business; (iii) information lawfully received by the Executive from a third
party who, based upon inquiry by the Executive, is not bound by a confidential
relationship to the Company; or (iv) information disclosed under a requirement
of law or as directed by applicable legal authority having jurisdiction over the
Executive.

        7.
INVENTIONS. The Executive is hereby retained in a capacity such that the
Executive’s responsibilities include the making of technical and managerial
contributions of value to the Company. The Executive hereby assigns to Company
all right, title and interest in such contributions and inventions made or
conceived by the Executive alone or jointly with others during the Employment
Period which relate to the business or of the Company. This assignment shall
include (a) the right to file and prosecute patent applications on such
inventions in any and all countries, (b) the patent applications filed and
patents issuing thereon, and (c) the right to obtain copyright, trademark or
trade name protection for any such work product. The Executive shall promptly
and fully disclose all such contributions and inventions to the Company and
assist the Company in obtaining and protecting the rights therein (including
patents thereon), in any and all countries; provided, however, that said
contributions and inventions will be the property of Company, whether or not
patented or registered for copyright, trademark or trade name protection, as the
case may be. Inventions conceived by the Executive which are not related to the
business of the Company, will remain the property of the Executive. 

        8.
NON-COMPETITION. The Executive agrees that he shall not during the
Employment Period and, if applicable, the Severance Period, without the approval
of the Board, directly or indirectly, alone or as partner, joint venturer,
officer, director, employee, consultant, agent, independent contractor or
stockholder (other than as provided below) of any company or business, engage in
any “Competitive Business” within the United States. For purposes of
the foregoing, the term “Competitive Business” shall mean any business
involved in development, marketing, sale or support of products or services
which can reasonably be expected to directly cause customers not to use the
Company’s products or services. Notwithstanding the foregoing, the
Executive shall not be prohibited during the non-competition period applicable
above from acting as a passive investor where he owns not more than one percent
(1%) of the issued and outstanding capital stock of any publicly-held company.
During the period that the above non-competition restriction applies, the
Executive shall not, without the written consent of the Company, solicit any
employee of the Company or any current or future subsidiary or affiliate thereof
to terminate his or her employment. 

6

        9.
BREACH OF RESTRICTIVE COVENANTS. The parties agree that a breach or
violation of Sections 6, 7 or 8 hereof will result in immediate and irreparable
injury and harm to the innocent party, who shall have, in addition to any and
all remedies of law and other consequences under this Agreement, the right to an
injunction, specific performance or other equitable relief to prevent the
violation of the obligation hereunder. 

        10.
NOTICE. For the purposes of this Agreement, notices, demands and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or (unless otherwise
specified) mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed as follows: 

        
        a.       If to the Company, to:

            
        U.S. Wireless Data, Inc.

            
        750 Lexington Avenue

            
        New York, New York 10022

            
        Attention:  Chief Executive Officer

        
        b.       If to the Executive, to:

            
        Dean Michael Leavitt

            
        50 Catherine Road

            
        Scarsdale, NY  10583

or to such other respective
addresses as the parties hereto shall designate to the other by like notice,
provided that notice of a change of address shall be effective only upon receipt
thereof. 

        11.
ARBITRATION; LEGAL FEES. Except as provided in Section 9 hereof, any
dispute or controversy arising under or in connection with this Agreement shall
be settled exclusively by arbitration in the city or metropolitan area where the
Company’s headquarters 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 jurisdiction. The Company shall
reimburse the Executive for all reasonable legal fees and costs and other fees
and expenses which the Executive may incur in respect of any dispute or
controversy arising against the Company under or in connection with this
Agreement; provided, however, that the Company shall not reimburse any such
fees, costs and expenses if the factfinder determines that the action brought by
the Executive was substantially without merit. 

7

        12.
WAIVER OF BREACH. Any waiver of any breach of the Agreement shall not be
construed to be a continuing waiver or consent to any subsequent breach on the
part either of the Executive or of the Company.

        13.
NON-ASSIGNMENT; SUCCESSORS. Neither party hereto may assign his or its
rights or delegates his or its duties under this Agreement without the prior
written consent of the other party; provided, however, that (i) this Agreement
shall inure to the benefit of and be binding upon the successors and assigns of
the Company upon any sale of all or substantially all of the Company’s
assets, or upon any merger, consolidation or reorganization of the Company with
or into any other corporation, all as though such successors and assigns of the
Company and their respective successors and assigns were the Company; and (ii)
this Agreement shall inure to the benefit of and be binding upon the heirs,
assigns or designees of the Executive to the extent of any payments due to them
hereunder. As used in this Agreement, the term “Company” shall be
deemed to refer to any such successor or assign of the Company referred to in
the preceding sentence. 

        14.
WITHHOLDING OF TAXES. All payments required to be made by the Company to
the Executive under this Agreement shall be subject to the withholding of such
amounts, if any, relating to tax, and other payroll deductions as the Company
may reasonably determine it should withhold pursuant to any applicable law or
regulation. 

        15.
SEVERABILITY. To the extent any provision of this Agreement or portion
thereof shall be invalid or unenforceable, it shall be considered deleted
therefrom and the remainder of such provision and of this Agreement shall be
unaffected and shall continue in full force and effect.

        16.
COUNTERPARTS. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

        17.
GOVERNING LAW. This Agreement shall be construed, interpreted and
enforced in accordance with the laws of the State of New York, without giving
effect to the conflict of law principles thereof.

        18.
ENTIRE AGREEMENT. This Agreement constitutes the entire agreement by the
Company and the Executive with respect to the subject matter hereof (except as
effected by the contents of the Warrant and the Indemnification Agreement which
shall govern with respect to their subject matter) and supersedes any and all
prior agreements or understandings between the Executive and the Company with
respect to the subject matter hereof, whether written or oral. This Agreement
may be amended or modified only by a written instrument executed by the
Executive and the Company. 

8

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of May 3, 1999. 

        
                
                
                
                
                
                
                U.S.
WIRELESS DATA, INC.

        
                
                
                
                
                
                
                
By: _____________________________

        
                
                
                
                
                
                
                
Rick J. DeVincenzo

        
                
                
                
                
                
                
                
Title:Senior Vice President and CFO

        
                
                
                
                
                
                
                
THE EXECUTIVE

        
                
                
                
                
                
                
                
________________________________

        
                
                
                
                
                
                
                
Dean Michael Leavitt

9

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