Document:

Exhibit
10.2

 

Employment Agreement

 

This
Employment Agreement (the “Agreement”), dated as of August 1, 2006 is
entered into between SkyPostal, Inc., a Delaware corporation (the “Company”)
whose address is 7805 NW 15th Street, Miami, Florida 33126, and Albert
P. Hernandez (the “Executive”) whose address is at 14751 Marvin Lane, Southwest
Ranches, Florida 33330.

 

Recitals

 

A.                                   The Company is engaged in international mail
distribution services; and,

 

B.                                     The Company desires to employ the Executive
in connection with such business and as Chief Executive Officer and President
and the Executive is willing to accept such employment, on the terms and
subject to the conditions set forth in this Agreement.

 

Agreement

 

In
consideration of the foregoing and of the mutual promises set forth in this
Agreement, the Company and the Executive agree as follows:

 

1.                                       Employment.  The
Company hereby employs the Executive as Chief Executive Officer and President
of the Company, and the Executive hereby accepts such employment, upon the
terms and subject to the conditions set forth in this Agreement.

 

2.                                       Term. The initial term of this Agreement shall be
for five (5) years, commencing on the date hereof (the “Commencement Date”)
and ending on the fifth anniversary of the Commencement Date, subject to
earlier termination pursuant to the provisions of Section 10. This
Agreement may be renewed thereafter only by a writing duly executed by both
parties

 

3.                                       Duties. 
During the term of this Agreement, the Executive shall serve as Chief
Executive Officer and President of the Company and shall perform all duties
commensurate with his position and as may reasonably be assigned to him from
time to time by the Board of Directors of the Company (the “Board”). The
Executive shall report directly to the Board. The Executive shall devote his
full business time and energies to the business and affairs of the Company and
shall use his reasonable efforts, skills and abilities to promote the interests
of the Company and to diligently and competently perform the duties of his
position.

 

4.                                       Compensation and Benefits. From and after the Commencement Date:

 

(a)                                  Base Salary. The Company shall pay compensation to the
Executive at a gross rate of $200,000 per year (as in effect from time to time,
the “Salary”) less all applicable tax withholdings, subject to periodic
increase from time to time upon the review and determination of the Board in
its discretion, which review shall be conducted no less frequently than
annually on or about May 1st of each year.  The Executive’s Salary shall be payable in
accordance with the normal payroll practices and policies of the Company.

 

(b)                                 Bonus Compensation. The Company shall pay to the Executive
bonus compensation (“Bonus Compensation”) equal to three percent (3%) of the
net income before taxes for each fiscal year of the Company up to a maximum
amount of $500,000 per each fiscal year, commencing with the current fiscal
year of the Company, which bonus shall be payable by March 15th
after conclusion of each fiscal year.

 

 

(c)                                  Vesting Stock Sale.  The
Executive shall also receive an option to purchase 2,311,440 shares of the
Company’s common stock, $0.0001 par value, at an exercise price of US$0.30 per
share.  The Executive will execute the
purchase of these shares at the strike price of US$0.30 and the company will
accept a note for payment of said shares at Prime Rate as reported in the Wall
Street Journal on the first day of every month. Payable in full on November 30,
2010. The Company will retain the right to repurchase the unvested shares as
follows:

 

The Unvested Share
Repurchase Right shall terminate with respect to the Unvested Shares  for which it is not timely exercised. In
addition, the Unvested Share Repurchase Right shall terminate and cease to be
exercisable, and such Purchased Shares shall cease to be Unvested Shares and
Purchaser shall thereupon acquire a vested interest therein (such shares to be
hereinafter called the “Vested Shares”) as to one-third (1/3) of Purchaser’s
Purchased Shares on November 1, 2008 and each of November 1, 2009;
and November 1, 2010; provided, however, that one hundred percent (100%)
of the Purchased Shares shall become Vested Shares upon the earliest to occur
of, (i) Liquidity Event, and (ii) termination of Purchaser’s
employment arrangement with the Company without “Cause”.

 

(d)                                 Employee Benefits. During the term of this Agreement, the
Executive shall be entitled to participate in or benefit from, in accordance
with the eligibility and other provisions thereof, such medical, life and
disability insurance, pension, retirement, life insurance, bonus, profit
sharing, 401(k) plans or policies (which shall include at a minimum
medical insurance coverage (health, dental and supplemental insurance) for the
Executive and his family) and such other benefits as the Company may make
available to, or have in effect for, its executive personnel and employees from
time to time.

 

(e)                                  Life Insurance. During the term of this Agreement, the
Company agrees to pay the quarterly premiums on the Executive’s life insurance
policy with CNA Valley Forge Insurance Company.

 

(f)                                    Disability Insurance. During the term of this Agreement, the
Company agrees to provide Executive with Disability Insurance that will cover
at least eighty (80%) of the Executive’s Base Salary in
the event of his inability to work.

 

(g)                                 Directors and Officers
Liability Insurance.
During the term of this Agreement and
for a period of five (5) years after the Executive ceases to be a director,
the Company agrees to provide Executive with Directors and Officers Liability
Insurance coverage of a minimum of $5 million.

 

(h)                                 Vacation. The Executive shall be entitled to twenty
one (21) business days paid
vacation in each calendar year and shall also be entitled to paid sick leave,
holidays and other similar benefits in accordance with policies of the Company
from time to time in effect for its executive personnel generally.

 

(i)                                     Communications Equipment.  The
Company acknowledges that the Executive has provided his own personal lap top
and cellular telephone for use in the business of the Company that receives and transmits electronic
correspondence. The Company will pay the Executive’s phone service and usage
and provide email service thru the Company’s
servers. Upon termination of this Agreement,
the Company acknowledges that the cellular 

 

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telephone and personal lap
top are the Executive’s personal property and shall be retained by Executive.

 

(j)                                     Car Allowance.   In
lieu of a Company car, during the term of this Agreement, the Company will pay Executive
a car allowance of Seven Hundred Dollars (US$700) per month. Any reasonable maintenance expenses such as
replacement tires, service maintenance and repairs will also be paid by the Company. 
In addition, during the
Term of this Agreement, the Corporation shall provide Executive with a gas
card.

 

(k)                                  Association Dues. 
During the Term of this Agreement, the Corporation may pay reasonable
initiation fees and dues payable in connection with the Executive’s membership(s) in
those clubs and activities that in the opinion of the Board are in furtherance
and directly related to the active conduct of the Corporation’s business and
are consistent with sound tax planning.

 

(l)                                     Federal Income Tax
Withholding. The Company
shall  withhold
from compensation, bonuses and benefits payable under this Agreement, or
arrange for the payment of, federal, state, local or other taxes as required
pursuant to law or governmental regulation or ruling.

 

(m)                               Indemnity. In addition to any and all other indemnity
rights to which the Executive may be entitled under the Articles of
Incorporation or Bylaws of the Company, or otherwise, the Executive shall be
indemnified and held harmless by the Company to the maximum extent permitted by
law or future legislation or by current or future judicial or administrative
decision (but, in the case of any future legislation or decision, only to the
extent that it permits the Company to provide broader indemnification rights
than permitted prior to the legislation or decision) for any and all such director, losses, claims, suits,
proceedings, arbitrations, mediations, liabilities, fines, assessments, settlements, damages, costs and
expenses (including, without limitation, reasonable fees and disbursements of
counsel), whether suit is instituted or not and, if instituted, whether at any
trial or appellate level (collectively, the “Liabilities”), which may arise in
connection with, as a result of, or based upon the performance of Executive’s
duties hereunder as an employee or
director or his employment by
the Company, including, without limitation, any derivative suits or other suits
brought by or on behalf of the shareholders of the Company.  In the event of any claim against the
Executive which may give rise to Liabilities hereunder, the Executive shall
give prompt written notice thereof to the Company, and the Company shall assume
the defense thereof at its own cost and expense. Costs, charges and expenses (including attorneys’ fees) incurred by
Executive in defending a civil or criminal suit, action or proceeding shall be
paid by the Company in advance of the final disposition thereof upon receipt of
an undertaking to repay all amounts advanced if it is ultimately determined
that Executive is not entitled to be indemnified by the Company as authorized
by the Articles of Incorporation, Bylaws, this Agreement or otherwise.  If this subsection, the Articles of
Incorporation or Bylaws of the Company, or any portion thereof, is invalidated
on any ground by a court of competent jurisdiction, the Company nevertheless
shall indemnify Executive to the fullest extent permitted by all portions of
this subsection, Articles of Incorporation or Bylaw that has not been
invalidated and to the fullest extent permitted by law.

 

5.                                       Reimbursement of Business
Expenses. During the
term of this Agreement, upon submission of reasonable supporting documentation
in accordance with such guidelines as may be established from time to time by
the Board, the Executive shall be reimbursed by the 

 

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Company for all reasonable
business expenses incurred by the Executive on behalf of the Company in
connection with the performance of services under this Agreement.  Reimbursement will be made within thirty (30)  days of submission of properly
documented expense reports.

 

6.                                       Personal Assistant. During the term of this Agreement, the Executive will be
provided with a personal assistant,
provided that, the total annual compensation package for such personal assistant shall not exceed $20,000. The
Executive will reimburse the Company for any amounts paid in excess of that.

 

7.                                       Loans by Executive to the
Company.  The Company acknowledges that the Executive
has made several personal loans to the Company totaling over $300,000 that are
Home Equity loans secured by the Executive’s personal residence and his
personal credit cards. Upon termination of this Agreement for any reason whatsoever, any and all loan amounts
due to the Executive shall be paid in full by the Company.

 

8.                                       Representation of Executive.  The
Executive represents and warrants that he is not a party to, or bound by, any
agreement or commitment, or subject to any restriction, including, but not
limited to, agreements related to previous employment containing
confidentiality or non-compete covenants, which now or in the future may
adversely affect the business of the Company or the performance by the
Executive of his duties under this Agreement.

 

9.                                       Company Property.

 

(a)                          With the exception
of the “GPS Based PDA Algorithm Process” described herein, which it is
acknowledged and agreed was invented by Executive prior to his employment with
the Company, the Company shall
be the sole owner of all products and proceeds resulting from the Executive’s services
hereunder, including, but not limited to, all materials, ideas, concepts,
formats, developments, arrangements, packages, programs and other intellectual
property that the Company develops or creates during Executive’s employment
hereunder, free and clear of any claims by the Executive (or anyone claiming
under the Executive) of any kind or character whatsoever. The Executive agrees,
at the request and cost of the Company, to execute such assignments,
certificates or other instruments as the Company may from time to time deem
reasonably necessary or desirable to evidence, establish, maintain, perfect,
protect, enforce or defend its right, title and interest in or to any such
properties. Upon the termination of the Executive’s employment for any reason
whatsoever, all documents, records, notebooks, equipment, price lists,
specifications, programs, customer, and prospective customer list and other
materials which refer or relate to any aspect of the Company’s business which
are in the possession of the Executive (including all copies thereof), shall be
promptly returned to the Company, with
the exception of the items of personal property identified in Section 4(i) above.  The company acknowledges that the Executive
has developed a technology before he was employed by the Company. The Executive
developed an algorithm process to link a physical descriptive address with GPS
coordinates to generate an 8 digit alpha numeric Postal Code equating to the
descriptive address. The Executive has permitted the company to utilize this
process and to file a process patent with the US Patent Office. In the event of
the Executive’s termination the Company agrees to permit the Executive to
jointly own and use the process patent filed by the Company.

 

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(b)                                 With the exception
of the “GPS Based PDA Algorithm Process,” the Executive agrees that all processes, copyrights, trademarks,
technologies and/or inventions (“Inventions”), including new contributions,
improvements, brands, logos, ideas and discoveries, whether or not patentable
or eligible for trademark or copyright protection, conceived, developed,
invented or made by him during his employment by the Company shall belong to
the Company, provided that such Inventions grew out of the Executive’s work
with the Company, are related in any manner to the Company’s business or are
conceived or made on the Company’s time or with the use of the Company’s
facilities or materials. The Executive shall (i) promptly disclose such
Inventions to the Company; (ii) assign to the Company at the Company’s
cost, without additional compensation, all patent and other rights to such
Inventions for the United States and foreign countries; (iii) sign all
papers reasonably necessary to carry out the foregoing; and (iv) at the
cost of the Company and subject to a
reasonable per diem, give testimony in support of his inventorship.

 

10.                                 Confidentiality;
Non-compete.

 

(a)                                  The Executive acknowledges that as a result
of his employment with the Company, the Executive has and will continue to have
knowledge of, and access to, the proprietary and confidential information of
the Company (collectively, the “Confidential Information”). Accordingly, except
as otherwise required by law, the Executive shall not, at any time during the
term of this Agreement or for a one year period after the termination of this
Agreement, use, reveal, report, publish, transfer or otherwise disclose to any
Person, any of the Confidential Information without the prior written consent
of the Board, except to responsible officers, employees, advisers and
consultants of the Company and other responsible persons who are in a
contractual or fiduciary relationship with the Company and who have a “need to
know” such information for purposes in the best interests of the Company. For
purposes hereof; Confidential Information shall not include any information
which: (i) at the time of disclosure is within the public domain; (ii) after
disclosure becomes a part of the public domain or generally known within the
industry through no fault, act or failure to act, error, effort or breach of
this Agreement by the Executive; or (c) is required by order, statute or
regulation, of any governmental authority to be disclosed to any federal or
state agency, court or other body.

 

(b)                                 If Confidential Information known to the
Executive or in his possession is subpoenaed, subject to a demand for
production, or any other form of legal process issued with respect to the
Confidential Information by any judicial, regulatory, administrative,
legislative or governmental authority, or any other Person, the Executive
agrees to notify the Company promptly that such subpoena, demand or other legal
process has been received. The Executive agrees to use, at the Company’s
request and expense, his commercially reasonable efforts, consistent with the
requirements of applicable law, to protect the Confidential Information from
disclosure and to cooperate with the Company in seeking protection from
disclosure of the Confidential Information.

 

(c)                                           Upon the termination of this Agreement, the
Executive shall promptly deliver to the Company all originals and all copies
that are in the Executive’s possession or control of the following: all
customer lists, drawings, manuals, letters, notes, notebooks, reports and all
other materials, including those of a secret or confidential nature, relating
to the business of the Company.

 

(d)                                          So long as the Executive remains employed by
the Company and for a

 

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period of six (6) months  after
the termination of his employment (the “Restricted Period”), the Executive
shall not, directly or indirectly, engage or have an interest, anywhere in
South Florida or any other geographic area where the Company does business or
in which its products are marketed at the time of termination, alone or in
association with others, as principal, officer, agent, employee, director,
partner or stockholder (except as an employee or consultant of the Company or
any of its Affiliates), in any business competitive with the business engaged
in by the Company.  During the Restricted
Period, the Executive shall also not recruit or otherwise solicit or induce any
person who is an employee of the Company to terminate his or her employment with
the Company or hire any person who has left the employ of the Company during
the preceding year.  The ownership or
control of up to five percent (5%) of the outstanding voting securities or
securities of any class of a company with a class of securities registered
under the Securities Exchange Act of 1934, as amended, shall not be deemed to
be a violation of the provisions of this Section 10.  In addition, commercialization
of the “GPS Based PDA Algorithm Process” by Executive shall not be deemed
prohibited by this Section 10. 
Notwithstanding the foregoing provisions of this Section 10(d), in the event that (i) the
Executive is terminated for any reason (other than for Cause (as hereinafter
defined)), or (ii) the Company materially breaches this Agreement, the
provisions of this Section 10(d) shall
terminate and be of no further force and effect.

 

11.                                 Remedies. The parties agree that, in the event of a
breach of the provisions of Section 8, the Company would suffer
irreparable harm. Accordingly, the Executive agrees that, in addition to any
other remedies available to the Company, the Company shall be entitled to
injunctive relief, specific performance and other equitable relief to secure
the enforcement of thereof. If any provisions of Section 7 relating to the
time period, scope of activities, geographic area of restrictions or otherwise
is declared by a court of competent jurisdiction to exceed the maximum
permissible time period, scope of activities, geographic area or other matter
of public policy, the maximum time period, scope of activities, geographic area
or other matter, as the case may be, shall be reduced to the maximum which such
court deems enforceable.

 

12.                                 Termination. This Agreement may be terminated prior to
the expiration of the term set forth in Section 2 upon the occurrence of
any of the events set forth in, and subject to the terms of, this Section 10.

 

(a)                                  Death. This Agreement will terminate immediately
and automatically upon the death of the Executive.

 

(b)                                 Disability.  This Agreement may be terminated at the Company’s option, immediately
upon written notice to the Executive, if the Executive shall suffer a permanent
disability. For the purposes of this Agreement, the term “ permanent disability”
shall have the meaning set forth in the Company’s disability insurance policy,
as in effect from time to time, or in the absence of such a definition therein,
shall mean the Executive’s inability to perform one or more of his essential
duties under this Agreement with reasonable accommodation for a period of 120
consecutive days or for an aggregate of 150 days, whether or not consecutive,
in any twelve month period (the “Disability Period”), due to illness, accident
or any other physical or mental incapacity, as reasonably determined by a physician
selected in good faith by the Board.

 

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(c)                                  Cause. This Agreement may be terminated at the Company’s option, immediately
upon written notice to the Executive for Cause. For purposes of this Agreement,
“Cause” shall mean Executive’s (i) conviction for fraud or embezzlement;
or (ii) willful misconduct or gross negligence in connection with the
performance of his duties hereunder (other than as a result of total or partial
incapacity due to physical or mental illness). 
For purposes of this Agreement, no act or failure to act by Executive
shall be deemed “willful” or “negligent” unless done, or admitted to be done,
in bad faith or without the reasonable belief that the act or failure to act
was in the best interest of the Company. Any act or failure to act on the basis
of authority given by a resolution duly adopted by the Company’s Board of
Directors or on the basis of advice given by legal counsel for the Company or the Company’s
accountants shall be conclusively presumed to have been done,
or omitted to be done, in good faith and in the best interest of the Company.  In addition to the foregoing, no termination
of Executive’s employment shall be for Cause unless such termination shall have
been authorized in advance by a resolution adopted by the Board of Directors of
the Company and delivered to Executive following a meeting of the Board of
Directors at which Executive shall have been afforded a reasonable opportunity
to refute the purported grounds for termination for Cause.

 

(d)                                 Termination
for “Good Reason”. The Executive may terminate his employment under this
Agreement for “Good Reason.” For purposes of this Section 12(d), the Executive shall have “Good Reason” to terminate his
employment any time during the term of this Agreement if, after a Change in
Control of the Company (as defined below), the Company (i) assigns to the
Executive any duties that are inconsistent with the positions described in Section 3
of this Agreement, (ii) diminishes significantly the then existing duties
of the Executive without the written consent of the Executive, (iii) removes
the Executive from or fails to re-elect the Executive to the positions
described in Section 3 of this Agreement, (iv) materially fails to
comply with Section 4 of this Agreement, or (v) requires the
Executive to be based at any office or location other than the Company’s Miami
location which change of location would require the Executive to commute a
distance from his primary residence in excess of thirty (30) miles.

 

For purposes of this Agreement, a “Change in Control” means
the occurrence of any of the following events with respect to the Company: (i) consolidates
with, merges into or with or enters into any pool, joint venture, syndicate or
other combination with another Person (other than an Affiliate), (ii) permits
any Person (other than an Affiliate) to acquire in any manner whatsoever any
portion of its capital stock or other ownership interests equal to or in excess
of ten percent (10%), whether in a single transaction or series of related or
unrelated transactions, (iii) the liquidation or dissolution of the
Company or the sale, lease or other disposition of twenty percent (20%) or more
of its business or assets, in a single transaction or series of transactions,
except in the ordinary course of business, or (iv) entry into a management
or similar agreement with any Person (other than an Affiliate), which provides
for the management of the day to day operations of the Company by any such Person.

 

(e)                                  Notice of
Termination. A termination of the Executive’s employment under this Agreement shall be
communicated by the terminating party by written notice of termination (“Notice
of Termination”) that shall include (i) the date such termination is to be
effective; (ii) the specific termination provision in this Section 10
upon which the terminating party has relied; and (iii) except for a
termination under Section 10(a), the facts and circumstances claimed by
the terminating party that provide a basis for the termination of the Executive’s
employment under the provision indicated in the Notice of Termination.

 

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13.                                 Effect of
Termination.

 

(a)                                  Upon termination of the
Executive’s employment under Section 10(a), 10(b), or  10(c), the Company
shall have no further obligation under this Agreement to make any payments to
or bestow any benefits on the Executive after the Termination Date (as defined
below), other than payments and benefits accrued and due and payable to the
Executive prior to the Termination Date and except in the event of a termination under Section 12(c), the pro
rata Bonus Compensation for the fiscal
year thereafter ending.  For purposes of this Agreement, “Termination
Date” means (i) if the Executive’s employment is terminated pursuant to Section 10(a) of
this Agreement, the date of the Executive’s death; (ii) if the Executive’s
employment is terminated by virtue of the expiration of this Agreement, the end
of the Term; or (iii) if the Executive’s employment is terminated pursuant
to Section 10(b), 10(c) or 10(d), a date not earlier than sixty (60)
days after the date of the Executive’s receipt of Notice of Termination.

 

(b)                                 If after a Change in
Control (i) the Executive’s employment is terminated by the Company
without Cause or (ii) is terminated by the Executive for Good Reason, then 
the parties agree that the provisions of Section 10(d) shall
terminate and be of no further force and effect and, in addition to
payments and benefits accrued and due and payable to the Executive prior to the
Termination Date and the pro rata Bonus
Compensation for the fiscal year thereafter ending, the Company shall
pay to the Executive as severance,
within five (5) business days after the Termination Date, a lump sum
payment equal to the greater of (i) the
balance of his Salary for the remainder of the existing term of this Agreement,
or (ii) one hundred and fifty percent (150%) of his annual Salary
as then in effect.  The Company shall
also provide Executive with all fringe benefits enjoyed by him at the
Termination Date (on a basis consistent with the basis upon which such benefits
were provided prior to such termination), until the second anniversary of the
Termination Date or, to the extent that Executive is not eligible to
participate in any Company fringe benefit plans (by the terms of any such
plan), the after tax value of providing such benefits until the second
anniversary of the Termination Date.

 

(c)                                           For the purposes of all
retirement plans of the Company applicable to the Executive and in effect on
the date of the Notice of Termination, the Company shall provide for payment of
retirement or death benefits to the Executive or his surviving spouse that are
calculated to reflect service credits for the period ending on the Termination
Date, as though the Executive were an Executive of the Company throughout this
period.

 

(d)                                 Upon termination or expiration of this Agreement
for any reason, any disability insurance policy and life insurance policy
maintained by the Company on the Executive shall be transferred into the name
of the Executive at no cost to the Executive to the extent permitted under such
policies.

 

14.                                 Informal
Dispute Resolution Procedure. 
Except
as set forth below, the parties agree that any dispute arising out of or
relating to the employment relationship between them and/or this Agreement,
including the termination of that relationship and any disputes as to the
enforceability or applicability of this dispute resolution provision, shall be
resolved under the following procedures:

 

(a)                                  The party claiming to be
aggrieved shall furnish to the other party a written statement of the grievance
identifying any witnesses or documents that support the grievance and the
relief requested or proposed.

 

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(b)                                 If the other party does not
agree within five (5) business days after receipt of
the statement to furnish promptly the relief requested or proposed, or
otherwise does not satisfy the demand of the party claiming to be aggrieved
within five business days after receipt of the statement, the parties shall
promptly submit the dispute to nonbinding mediation before a mediator to be
jointly selected by the parties.  The
Company will pay the cost of the mediation.

 

(c)                                  If the mediation does not
produce a resolution of the dispute within five business days after mediation
commences, the parties hereby agree to submit any such dispute, controversy or
claim to binding arbitration in conformance with the J*A*M*S/ENDISPUTE
Arbitration Rules and Procedures for Employment Disputes (“Employment
Rules”) but expressly excluding Rule 20 thereof, and further provided
that, notwithstanding Rule 14 thereof, the parties hereby agree that the
location of any such arbitration shall be Miami, Florida.

 

(d)                                 The arbitrator shall have
the authority to grant any relief authorized by law or in equity; provided,
however, that nothing herein shall limit the right of either party to seek
temporary injunctive relief from a court of competent jurisdiction.  The arbitrator shall not have the authority
to modify, change or refuse to enforce the terms of this Agreement.   Any relief granted hereunder can be enforced
exclusively by a court of competent jurisdiction in Miami-Dade County,
Florida.  The parties hereby irrevocably
submit in any such arbitration suit, action or proceeding to be located in
Miami-Dade County, Florida, and waive any and all other forums and objections
to such jurisdiction or venue that they may have under the laws of any state or
country, including, without limitation, any argument that jurisdiction, situs
and/or venue are inconvenient or otherwise improper.  The prevailing party in any dispute between
the parties, including but not limited to an action to enforce arbitration or
an arbitration award, shall be entitled to an award of reasonable attorney’s
fees and costs, including costs of arbitration notwithstanding Rule 27 of
the Employment Rules.

 

(e)                                  Arbitration shall be the
exclusive final remedy for all disputes between the parties, and the parties
agree that no dispute shall be submitted to arbitration if the party claiming
to be aggrieved has not complied with the preliminary steps in paragraphs (a) and
(b) above.

 

(f)                                    Notwithstanding
the foregoing, the Company shall have the right to seek equitable relief
pursuant to Section 11 in the event of a breach of Section 10 of this
Agreement.  In such event, the parties
hereby irrevocably submit in any such arbitration suit, action or proceeding to
be located in Miami-Dade County, Florida, and waive any and all other forums
and objections to such jurisdiction or venue that they may have under the laws
of any state or country, including, without limitation, any argument that
jurisdiction, situs and/or venue are inconvenient or otherwise improper.

 

15.                                 Miscellaneous

 

(a)                                  Survival. The provisions of
Sections 4(g), (i) and (m), 5, 7,
8, 9, 10, 11, 13, 14 and 15 shall survive the termination or expiration of this Agreement.

 

(b)                                 Entire
Agreement: Counterparts. This Agreement sets forth the entire understanding of the
parties regarding the subject matter hereof and merges and supersedes any prior
or contemporaneous agreements between the parties pertaining to the subject
matter 

 

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hereof. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original. Delivery of executed signature pages hereof by
facsimile transmission shall constitute effective and binding execution and
delivery hereof.

 

(c)                                  Modification. This Agreement may not be
modified or terminated orally, and no modification, termination or attempted
waiver of any of the provisions hereof shall be binding unless in writing and
signed by the parties hereto; provided, however, that Executive’s compensation
may be increased at any time by the Company without in any way affecting any of
the other terms and conditions of this Agreement, which in all other respects
shall remain in full force and effect

 

(d)                                 Waiver. Failure of a party to
enforce one or more of the provisions of this Agreement or to require at any
time performance of any of the obligations hereof shall not be construed to be
a waiver of such provisions by such party nor to in any way affect the validity
of this Agreement or such party’s right thereafter to enforce any provision of
this Agreement, nor to preclude such party from taking any other action at any
time which it would legally be entitled to take. All waivers to be effective
must be signed by the waiving party.

 

(e)                                  Successors
and Assigns.  Neither party shall have the right
to assign this personal Agreement, or any rights or obligations hereunder,
without the written consent of the other party. Subject to the foregoing, this
Agreement shall inure to the benefit of, and be binding upon, the parties
hereto and their respective legal representatives, heirs, executors,
beneficiaries, estates, personal representatives, legatees, successors and
permitted assigns.

 

(f)                                    Additional
Acts.
The Executive and the Company each agrees to execute, acknowledge and deliver
and file, or cause to be executed, acknowledged and delivered and filed, any
and all further instruments, agreements or documents as may be reasonably
necessary or expedient in order to consummate the transactions provided for in
this Agreement and to do any and all further acts and things as may be
reasonably necessary or expedient in order to carry out the purpose and intent
of this Agreement.

 

(g)                                 Communications. All notices, requests,
demands and other communications under this Agreement shall be in writing and
shall be deemed to have been given at the time personally delivered or five
days after being deposited in the United States mail enclosed in a registered
or certified postage prepaid envelope and addressed to the addresses set forth
below, or to such other address as any party may specify by notice to the other
party; provided, however, that any notice of change of address shall be
effective only upon receipt.

 

	
  To the Company:

  	
   

  	
  SkyPostal, Inc.

  
	
   

  	
   

  	
  7805 NW 15th Street,

  
	
   

  	
   

  	
  Miami, FL 33126

  
	
   

  	
   

  	
   

  
	
  To the Executive:

  	
   

  	
  Albert P. Hernandez

  
	
   

  	
   

  	
  14751
  Marvin Lane

  
	
   

  	
   

  	
  Fort
  Lauderdale, FL 33330

  
	
   

  	
   

  	
   

  
	
  With a copy
  to :

  	
   

  	
  Hunton &
  Williams

  
	
   

  	
   

  	
  1111 Brickell Avenue, Suite 2500

  
	
   

  	
   

  	
  Miami,
  Florida 33131

  
	
   

  	
   

  	
  Attn :
  Abigail C. Watts-FitzGerald, Esq.

  

 

10

 

(h)                                 Severability.  If any provision of this Agreement is held to
be invalid, void or unenforceable by a court of competent jurisdiction, such
invalidity or unenforceability shall not affect the validity and enforceability
of the other provisions of this Agreement and the provision held to be invalid
or unenforceable shall be enforced as nearly as possible according to its
original terms and intent to eliminate such invalidity or unenforceability.

 

(i)                                     Governing
Law.
This Agreement shall be governed by the laws of the State of Florida, without
regard to the conflicts of law principles thereof.

 

(j)                                     Definitions.  For purposes hereof, (i) an “Affiliate”
of any person means any Person or group (now or hereafter existing)
controlling, controlled by or under common control with, the specified person
or entity. and “control” of a person or entity (including, with correlative
meaning, the terms “control by” and “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of an entity or individual, whether through the
ownership of voting securities, by contract, or otherwise, and (ii) a “Person”
means any Individual, partnership, firm, trust, association, corporation, joint
venture, joint stock company, unincorporated organization, limited liability
company, limited liability partnership, governmental authority or other entity
or organization.

 

IN WITNESS WHEREOF, each of the parties hereto has duly
executed this Agreement as of the date set forth above.

 

 

	
   

  	
  SkyPostal, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: A.J. Hernandez

  	
   

  
	
   

  	
   

  	
  Title:   Chief Operating Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Executive:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Albert P. Hernandez

  	
   

  
						

 

11Exhibit
10.3

 

Employment
Agreement

 

This Employment Agreement (the “Agreement”), dated
as of August 1, 2006 is entered into between SkyPostal, Inc., a
Delaware corporation (the “Company”) whose address is 7805 NW 15th
Street, Miami, Florida 33126, and A.J. Hernandez (the “Executive”) whose
address is at 7440 SW 115 St. Miami, Florida 33156.

 

Recitals

 

A.                                   The Company is engaged in international mail
distribution services; and,

 

B.                                     The Company
desires to employ the Executive in connection with such business and as Chief
Operating Officer and the Executive is willing to accept such employment, on
the terms and subject to the conditions set forth in this Agreement. 

 

Agreement

 

In consideration of the foregoing and of the mutual promises set forth
in this Agreement, the Company and the Executive agree as follows:

 

1.                                       Employment.  The
Company hereby employs the Executive as Chief Operating Officer of the Company,
and the Executive hereby accepts such employment, upon the terms and subject to
the conditions set forth in this Agreement.

 

2.                                       Term.  The
initial term of this Agreement shall be for five (5) years, commencing on
the date hereof (the “Commencement Date”) and ending on the fifth anniversary
of the Commencement Date, subject to earlier termination pursuant to the
provisions of Section 10. This Agreement may be renewed thereafter only by
a writing duly executed by both parties

 

3.                                       Duties. 
During the term of this Agreement, the Executive shall serve as Chief
Operating Officer of the Company and shall perform all duties commensurate with
his position and as may reasonably be assigned to him from time to time by the
Chief Executive Officer and the Board of Directors of the Company (the “Board”).
The Executive shall report directly to the Chief Executive Officer. The
Executive shall devote his full business time and energies to the business and
affairs of the Company and shall use his reasonable efforts, skills and
abilities to promote the interests of the Company and to diligently and
competently perform the duties of his position.

 

4.                                       Compensation and Benefits.  From
and after the Commencement Date:

 

(a)                                  Base Salary. The Company shall pay compensation to the
Executive at a gross rate of $175,000 per year (as in effect from time to time,
the “Salary”) less all applicable tax withholdings, subject to periodic
increase from time to time upon the review and determination of the Board in
its discretion, which review shall be conducted no less frequently than
annually on or about May 1st of each year.  The Executive’s Salary shall be payable in
accordance with the normal payroll practices and policies of the Company.

 

(b)                                 Bonus Compensation.  The Company shall pay to the Executive bonus
compensation (“Bonus Compensation”) equal to one percent (1%) of the net income
before taxes for each fiscal year, commencing with the current fiscal year of
the Company, which bonus shall be payable at the end of the first quarter after
conclusion of each fiscal.

 

(c)                                  Vesting Stock Sale.  The
Executive shall also receive an option to purchase 2,226,154 shares of the
Company’s common stock, $0.0001 par value, at an exercise price of US$0.30 per
share.  The Executive will execute the
purchase of these shares at the strike price of US$0.30 and 

 

 

the
company will accept a note for payment of said shares at Prime Rate as reported
in the Wall Street Journal on the first day of every month. Payable in full on November 30,
2010. The Company will retain the right to repurchase the unvested shares as
follows:

 

The Unvested Share
Repurchase Right shall terminate with respect to the Unvested Shares  for which it is not timely exercised. In
addition, the Unvested Share Repurchase Right shall terminate and cease to be
exercisable, and such Purchased Shares shall cease to be Unvested Shares and
Purchaser shall thereupon acquire a vested interest therein (such shares to be
hereinafter called the “Vested Shares”) as to one-third (1/3) of Purchaser’s
Purchased Shares on November 1, 2008 and each of November 1, 2009;
and November 1, 2010; provided, however, that one hundred percent (100%)
of the Purchased Shares shall become Vested Shares upon the earliest to occur
of, (i) Liquidity Event, and (ii) termination of Purchaser’s
employment arrangement with the Company without “Cause”.

 

(d)                                 Employee Benefits. During the term of this Agreement, the
Executive shall be entitled to participate in or benefit from, in accordance
with the eligibility and other provisions thereof, such medical, life and
disability insurance, pension, retirement, life insurance, bonus, profit
sharing, 401(k) plans or policies (which shall include at a minimum
medical insurance coverage (health, dental and supplemental insurance) for the
Executive and his family) and such other benefits as the Company may make
available to, or have in effect for, its executive personnel and employees from
time to time.

 

(e)                                  Life Insurance.  The
Company will obtain a whole life insurance policy in the amount of $2 million
on the life of the Executive naming the Company as beneficiary. Upon
termination of the Executive’s employment with the Company, the Company will
cause the policy to be transferred to the Executive’s nominated beneficiary.
The Executive will be responsible for all costs of such policy upon the change
in beneficiary.

 

(f)                                    Disability Insurance.  During the term of this Agreement, the Company agrees to provide
Executive with Disability Insurance that will cover at least eighty  (80%)  of the
Executive’s Base Salary in the event of his inability to work.

 

(g)                                 Directors and Officers
Liability Insurance.  During the term of this
Agreement and for a period of five (5) years
after the Executive ceases to be a director, the Company agrees to
provide Executive with Directors and Officers Liability Insurance coverage of a
minimum of $5 million.

 

(h)                                 Vacation.  The
Executive shall be entitled to twenty one (21) business days paid vacation in each calendar year and shall also
be entitled to paid sick leave, holidays and other similar benefits in
accordance with policies of the Company from time to time in effect for its
executive personnel generally.

 

(i)                                     Communications Equipment.  The
Company acknowledges that the Executive has provided his own personal lap top
and cellular telephone for use in the business of the Company that receives and transmits electronic correspondence.
The Company will pay the Executive’s phone service and usage and provide email
service thru the Company’s
servers. Upon termination of this Agreement,
the Company acknowledges that the cellular telephone and personal lap top are
the Executive’s personal property  and shall be retained by Executive.

 

(j)                                     Car Allowance.  In
lieu of a Company car, during the term of this Agreement, the Company will pay
Executive a car allowance of One Thousand Dollars  (US$1000) per month. Any reasonable
maintenance expenses such as replacement tires, service maintenance and repairs
will also be paid by the
Company.  In addition,  during the
Term of this Agreement, the Corporation shall provide Executive with a gas
card.

 

(k)                                  Association Dues. 
During the Term of this Agreement, the Corporation may pay reasonable
initiation fees and dues payable in connection with the Executive’s membership(s) in

 

2

 

those
clubs and activities that in the opinion of the Board are in furtherance and
directly related to the active conduct of the Corporation’s business and are
consistent with sound tax planning.

 

(l)                                     Federal Income Tax Withholding.  The
Company shall withhold from
compensation, bonuses and benefits payable under this Agreement, or arrange for
the payment of, federal, state, local or other taxes as required pursuant to
law or governmental regulation or ruling.

 

(m)                               Indemnity.  In addition to any and all other indemnity
rights to which the Executive may be entitled under the Articles of
Incorporation or Bylaws of the Company, or otherwise, the Executive shall be
indemnified and held harmless by the Company to the maximum extent permitted by
law or future legislation or by current or future judicial or administrative
decision (but, in the case of any future legislation or decision, only to the
extent that it permits the Company to provide broader indemnification rights
than permitted prior to the legislation or decision) for any and all such director,  losses,
claims, suits, proceedings, arbitrations, mediations, liabilities, fines,
assessments, settlements, damages, costs
and expenses (including, without limitation, reasonable fees and disbursements
of counsel), whether suit is instituted or not and, if instituted, whether at
any trial or appellate level (collectively, the “Liabilities”), which may arise
in connection with, as a result of, or based upon the performance of Executive’s
duties hereunder as an employee or
director or his employment by
the Company, including, without limitation, any derivative suits or other suits
brought by or on behalf of the shareholders of the Company.  In the event of any claim against the
Executive which may give rise to Liabilities hereunder, the Executive shall
give prompt written notice thereof to the Company, and the Company shall assume
the defense thereof at its own cost and expense. Costs, charges and expenses (including attorneys’ fees) incurred by
Executive in defending a civil or criminal suit, action or proceeding shall be
paid by the Company in advance of the final disposition thereof upon receipt of
an undertaking to repay all amounts advanced if it is ultimately determined
that Executive is not entitled to be indemnified by the Company as authorized
by the Articles of Incorporation, Bylaws, this Agreement or otherwise.  If this subsection, the Articles of
Incorporation or Bylaws of the Company, or any portion thereof, is invalidated
on any ground by a court of competent jurisdiction, the Company nevertheless
shall indemnify Executive to the fullest extent permitted by all portions of
this subsection, Articles of Incorporation or Bylaw that has not been
invalidated and to the fullest extent permitted by law.

 

5.                                       Reimbursement of Business
Expenses.  During the term of this Agreement, upon
submission of reasonable supporting documentation in accordance with such
guidelines as may be established from time to time by the Board, the Executive
shall be reimbursed by the Company for all reasonable business expenses
incurred by the Executive on behalf of the Company in connection with the
performance of services under this Agreement. 
Reimbursement will be made within thirty (30) days of
submission of properly documented expense reports.

 

6.                                       Representation of Executive.  The
Executive represents and warrants that he is not a party to, or bound by, any
agreement or commitment, or subject to any restriction, including, but not
limited to, agreements related to previous employment containing
confidentiality or non-compete covenants, which now or in the future may
adversely affect the business of the Company or the performance by the
Executive of his duties under this Agreement.

 

7.                                       Company Property.

 

(a)                                  The Company shall be the sole owner of all
products and proceeds resulting from the Executive’s services hereunder,
including, but not limited to, all materials, ideas, concepts, formats,
developments, arrangements, packages, programs and other intellectual property
that the Company develops or creates during Executive’s employment hereunder,
free and clear of any claims by the Executive (or anyone claiming under the
Executive) of any kind or character whatsoever. The Executive agrees, at the
request and cost of the Company, to execute such assignments, certificates or
other instruments as the Company may from time to time deem reasonably
necessary or desirable to evidence, establish, maintain, perfect, protect,
enforce or defend its right, title and interest in or to any such properties.
Upon the termination of the Executive’s employment for any reason whatsoever,
all

 

3

 

documents,
records, notebooks, equipment, price lists, specifications, programs, customer,
and prospective customer list and other materials which refer or relate to any
aspect of the Company’s business which are in the possession of the Executive
(including all copies thereof), shall be promptly returned to the Company.

 

(b)                                 The Executive agrees that all processes,
copyrights, trademarks, technologies and/or inventions (“Inventions”), including
new contributions, improvements, brands, logos, ideas and discoveries, whether
or not patentable or eligible for trademark or copyright protection, conceived,
developed, invented or made by him during his employment by the Company shall
belong to the Company, provided that such Inventions grew out of the Executive’s
work with the Company, are related in any manner to the Company’s business or
are conceived or made on the Company’s time or with the use of the Company’s
facilities or materials. The Executive shall (i) promptly disclose such
Inventions to the Company; (ii) assign to the Company at the Company’s
cost, without additional compensation, all patent and other rights to such
Inventions for the United States and foreign countries; (iii) sign all papers
reasonably necessary to carry out the foregoing; and (iv) at the cost of
the Company, give testimony in support of his inventorship.

 

8.                                       Confidentiality; Non-compete.

 

(a)                                  The Executive acknowledges that as a result
of his employment with the Company, the Executive has and will continue to have
knowledge of, and access to, the proprietary and confidential information of
the Company (collectively, the “Confidential Information”). Accordingly, except
as otherwise required by law, the Executive shall not, at any time during the
term of this Agreement or for a one year period after the termination of this
Agreement, use, reveal, report, publish, transfer or otherwise disclose to any
Person, any of the Confidential Information without the prior written consent
of the Board, except to responsible officers, employees, advisers and
consultants of the Company and other responsible persons who are in a
contractual or fiduciary relationship with the Company and who have a “need to
know” such information for purposes in the best interests of the Company. For
purposes hereof; Confidential Information shall not include any information
which: (i) at the time of disclosure is within the public domain; (ii) after
disclosure becomes a part of the public domain or generally known within the
industry through no fault, act or failure to act, error, effort or breach of
this Agreement by the Executive; or (c) is required by order, statute or
regulation, of any governmental authority to be disclosed to any federal or
state agency, court or other body.

 

(b)                                 If Confidential Information known to the
Executive or in his possession is subpoenaed, subject to a demand for
production, or any other form of legal process issued with respect to the
Confidential Information by any judicial, regulatory, administrative,
legislative or governmental authority, or any other Person, the Executive
agrees to notify the Company promptly that such subpoena, demand or other legal
process has been received. The Executive agrees to use, at the Company’s request
and expense, his commercially reasonable efforts, consistent with the
requirements of applicable law, to protect the Confidential Information from
disclosure and to cooperate with the Company in seeking protection from
disclosure of the Confidential Information.

 

(c)                                  Upon the termination of this Agreement, the
Executive shall promptly deliver to the Company all originals and all copies
that are in the Executive’s possession or control of the following: all
customer lists, drawings, manuals, letters, notes, notebooks, reports and all
other materials, including those of a secret or confidential nature, relating
to the business of the Company.

 

(d)                                 So long as the Executive remains employed by
the Company and for a period of six (6) months  after the termination of his employment (the “Restricted
Period”), the Executive shall not, directly or indirectly, engage or have an
interest, anywhere in South Florida or any other geographic area where the
Company does business or in which its products are marketed at the time of
termination, alone or in association with others, as principal, officer, agent,
employee, director, partner or stockholder (except as an employee or consultant
of the Company or any of its Affiliates), in any business competitive

 

4

 

with
the business engaged in by the Company. 
During the Restricted Period, the Executive shall also not recruit or
otherwise solicit or induce any person who is an employee of the Company to
terminate his or her employment with the Company or hire any person who has
left the employ of the Company during the preceding year.  The ownership or control of up to five
percent (5%) of the outstanding voting securities or securities of any class of
a company with a class of securities registered under the Securities Exchange
Act of 1934, as amended, shall not be deemed to be a violation of the
provisions of this Section 10.  In addition, commercialization of the “GPS
Based PDA Algorithm Process” by Executive shall not be deemed prohibited by
this Section 10. 
Notwithstanding the foregoing provisions of this Section 10(d), in the event that (i) the
Executive is terminated for any reason (other than for Cause (as hereinafter
defined)), or (ii) the Company materially breaches this Agreement, the
provisions of this Section 10(d) shall
terminate and be of no further force and effect.

 

9.                                       Remedies.  The parties agree that, in the event of a breach of the provisions of Section 8,
the Company would suffer irreparable harm. Accordingly, the Executive agrees
that, in addition to any other remedies available to the Company, the Company
shall be entitled to injunctive relief, specific performance and other
equitable relief to secure the enforcement of thereof. If any provisions of Section 7
relating to the time period, scope of activities, geographic area of
restrictions or otherwise is declared by a court of competent jurisdiction to
exceed the maximum permissible time period, scope of activities, geographic
area or other matter of public policy, the maximum time period, scope of
activities, geographic area or other matter, as the case may be, shall be
reduced to the maximum which such court deems enforceable.

 

10.                                 Termination.  This Agreement may be terminated prior to the
expiration of the term set forth in Section 2 upon the occurrence of any
of the events set forth in, and subject to the terms of, this Section 10.

 

(a)   Death.  Upon
the death of the Executive during the Term of Employment, the Company shall (i) pay
to the estate of the deceased Executive any unpaid Base Salary through the
Executive’s date of death, (ii) pay to the estate of the deceased
Executive his accrued but unpaid Incentive Compensation, if any, for any Bonus
Period ending on or before the Executive’s date of death, (iii) continue
to pay to the estate of the deceased Executive the Base Salary the Executive
was receiving prior to his death under Section 4.0
hereof for a period of 3 months following the Executive’s death, in the manner
and at such times as the Base Salary otherwise would have been payable to the
Executive.  In addition, in the event
that the Executive’s spouse and/or children shall be eligible and shall elect
to receive COBRA coverage under the Company’s health plans, the Company shall
pay the premium payments applicable to such COBRA coverage during the
applicable COBRA continuation coverage period. 
The Company shall have no further liability hereunder (other than for
reimbursement for reasonable business expenses incurred prior to the date of
the Executive’s death, subject, however to the provisions of Section 5.0 and payment of compensation for unused
vacation days that have accumulated during the calendar year in which such
termination occurs).

 

(b) 
Disability.   The
Company shall at all times have the right, upon written notice to the
Executive, to terminate the Term of Employment, if the Executive shall become
entitled to benefits under the Company’s disability plan as then in effect, or,
if the Executive shall as the result of mental or physical incapacity, illness
or disability, become unable to perform his obligations hereunder for a period
of 150 days in any 12-month period.  The
Company shall have sole discretion based upon competent medical advice to determine
whether the Executive continues to be disabled. 
Upon any termination pursuant to this Section 10.0, the Company
shall (i) pay to the Executive any unpaid Base Salary through the
effective date of termination specified in such notice, (ii) pay to the
Executive his accrued but unpaid Incentive Compensation, if any, for any Bonus
Period ending on or before the date of termination of the Executive’s
employment with the Company, (iii) pay to the Executive a severance
payment equal to 12 months of the Executive’s Base Salary at the time of the termination
of the Executive’s employment with the Company, such amount to be paid in the
manner and at such times as the Base Salary otherwise would have been payable
to the Executive.  The Company shall have
no further liability hereunder (other than for reimbursement for reasonable
business expenses incurred prior to the date of termination,

 

5

 

subject, however to the
provisions of Section 5.0, and 
payment of compensation for unused vacation days that have accumulated
during the calendar year in which such termination occurs).

 

(c ) Cause.  This
Agreement may be terminated at the Company’s option, immediately upon written
notice to the Executive for Cause. For purposes of this Agreement, “Cause” shall mean Executive’s (i) conviction
for fraud or embezzlement; or (ii) willful misconduct or gross negligence
in connection with the performance of his duties hereunder (other than as a
result of total or partial incapacity due to physical or mental illness) after
a written demand is delivered to him by the Company, which demand specifically
identifies the manner in which the Company believes that he has not
substantially performed his duties. For purposes of this Agreement, no act or
failure to act by Executive shall be deemed “willful” or “negligent” unless
done, or admitted to be done, in bad faith or without the reasonable belief
that the act or failure to act was in the best interest of the Company. Any act
or failure to act on the basis of authority given by a resolution duly adopted
by the Company’s Board of Directors or on the basis of advice given by legal
counsel for the Company shall be conclusively presumed to have been done, or
omitted to be done, in good faith and in the best interest of the Company.  In addition to the foregoing, no termination
of Executive’s employment shall be for Cause unless such termination shall have
been authorized in advance by a resolution adopted by the Board of Directors of
the Company and delivered to Executive following a meeting of the Board of
Directors at which Executive shall have been afforded a reasonable opportunity
to refute the purported grounds for termination for Cause.

 

(d) Termination by Executive.

 

i.                                          The Executive shall at all times have the
right, upon ninety (90) days written notice to the Company, to terminate the
Term of Employment.

 

ii.                                       Upon termination of the Term of Employment
pursuant to this Section d (ii) (that is
not a termination under Section d (iv) by
the Executive without Good Reason, the Company shall (i) pay to the
Executive any unpaid Base Salary through the effective date of termination
specified in such notice and (ii) pay to the Executive his accrued but
unpaid Incentive Compensation, if any, for any Bonus Period ending on or before
the termination of Executive’s employment with the Company.  The Company shall have no further liability
hereunder (other than for reimbursement for reasonable business expenses
incurred prior to the date of termination, subject, however, to the provisions
of Section f (i), and payment of
compensation for unused vacation days that have accumulated during the calendar
year in which such termination occurs).

 

iii..                                 Upon termination of the Term of Employment
pursuant to this Section (d) (that is not
a termination under Section (f) )
by the Executive for Good Reason, the Company shall pay to the Executive the
same amounts that would have been payable by the Company to the Executive under
Section (e) of this Agreement if the Term of Employment had been terminated
by the Company without Cause.  The
Company shall have no further liability hereunder (other than for reimbursement
for reasonable business expenses incurred prior to the date of termination,
subject, however, to the provisions of Section 5,
and payment of compensation for unused vacation days that have accumulated
during the calendar year in which such termination occurs).

 

iv..                                For purposes of this Agreement, “Good
Reason” shall mean (i) the assignment to the Executive of any duties
inconsistent in any respect with the Executive’s position (including status,
offices, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 3
of this Agreement, or any other action by the Company which results in a
diminution in such position, authority, duties or responsibilities, excluding
for this purpose an isolated, insubstantial and inadvertent action not taken in
bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Executive; (ii) any failure by the Company to comply
with any of the provisions of Section 3
of this Agreement,  other than an
isolated, insubstantial and inadvertent failure not occurring in bad faith and
which is remedied by the Company promptly after receipt of notice thereof given
by the Executive;  (iii) the Company
requiring the Executive’s principal place of employment to be at any location
other than Miami, Florida, or the Company requiring the Executive to travel in
excess of the amount of travel required by the Company prior to the date of
this Agreement; or 

 

6

 

(iv) any purported
termination by the Company of the Executive’s employment otherwise than for
Cause pursuant to Section 10 (c), or by reason
of the Executive’s disability pursuant to Section 10 (b) of
this Agreement, prior to the Expiration Date.

 

(e)   Termination Without Cause.  At
any time the Company shall have the right to terminate the Term of Employment
by written notice to the Executive.  Upon
any termination pursuant to this Section 10 (e) (that
is not a termination under any of Sections 10 (a), 10 (b),
10 (c), 10 (d) or 10 (f), the Company shall (i) pay to the
Executive any unpaid Base Salary through the effective date of termination
specified in such notice, (ii) pay to the Executive the accrued but unpaid
Incentive Compensation, if any, for any Bonus Period ending on or before the
date of the termination of the Executive’s employment with the Company, (iii) continue
to pay the Executive’s Base Salary and Incentive Compensation through the end
of the term of this agreement from the date of termination hereunder (the “Continuation
Period”), in the manner and at such time as the Base Salary and Incentive
Compensation otherwise would have been payable to the Executive.  The Company shall have no further liability
hereunder (other than for reimbursement for reasonable business expenses
incurred prior to the date of termination, subject, however, to the provisions
of Section 5.0, and payment of
compensation for unused vacation days that have accumulated during the calendar
year in which such termination occurs).

 

(f)   Change in Control of the
Company.

 

i..                                       Payments.  Unless otherwise provided in Section 10 (f) hereof, in the event that a Change
in Control (as defined in paragraph (ii) of this Section 10
(f) in the Company shall occur during the Term of Employment,
the Company shall (i) pay to the Executive any unpaid Base Salary through
the effective date of termination, (ii) pay to the Executive the Incentive
Compensation, if any, not yet paid to the Executive for any year prior to such
termination, at such time as the Incentive Compensation otherwise would have
been payable to the Executive, (iii) pay to the Executive his Termination
Year Bonus, if any, at the time provided in Section 4
(b) hereof, and (iv) pay to the Executive within thirty
(30) days of the termination of his employment hereunder, a single lump sum
payment equal to 100% of the Executive’s annual Base Salary, Incentive
Compensation, and the pro-rata value of the fringe benefits (based upon their
cost to the Company) for the year immediately preceding the year in which his
employment terminates. The Company shall have no further liability hereunder
(other than for (x) reimbursement for reasonable business expenses
incurred prior to the date of termination, subject, however, to the provisions
of Section 5.0, and (y) payment
of compensation for unused vacation days that have accumulated during the
calendar year in which such termination occurs).

 

ii..                                    For purposes of this Agreement, the term “Change
in Control” shall mean approval by the shareholders of the Company of (i) a
reorganization, merger, consolidation or other form of corporate transaction or
series of transactions, in each case, with respect to which persons who were
the shareholders of the Company immediately prior to such reorganization,
merger or consolidation or other transaction do not, immediately thereafter,
own more than 50% of the combined voting power entitled to vote generally in the
election of directors of the reorganized, merged or consolidated company’s then
outstanding voting securities, in substantially the same proportions as their
ownership immediately prior to such reorganization, merger, consolidation or
other transaction, (ii) a liquidation or dissolution of the Company, or (iii) the
sale of all or substantially all of the assets of the Company (unless such
reorganization, merger, consolidation or other corporate transaction,
liquidation, dissolution or sale is subsequently abandoned).

 

(g). Resignation.  Upon any termination of employment pursuant to
this Section 10 (d), the Executive
shall be deemed to have resigned as an officer, and if he was then serving as a
director of the Company, as a director, and if required by the Board, the
Executive hereby agrees to immediately execute a resignation letter to the
Board.

 

(h).  Survival.  The provisions of this Section 10
shall survive the termination of this Agreement, as applicable.

 

7

 

(i) Notice
of Termination. A
termination of the Executive’s employment under this Agreement shall be
communicated by the terminating party by written notice of termination (“Notice
of Termination”) that shall include (i) the date such termination is to be
effective; (ii) the specific termination provision in this Section 10
upon which the terminating party has relied; and (iii) except for a
termination under Section 10(a), the facts and circumstances claimed by
the terminating party that provide a basis for the termination of the Executive’s
employment under the provision indicated in the Notice of Termination.

 

11.                                 Effect of
Termination.

 

(a)                                  Upon termination of the
Executive’s employment under Section 10(a), 10(b), or 10(c), the Company shall have no further obligation under this
Agreement to make any payments to or bestow any benefits on the Executive after
the Termination Date (as defined below), other than payments and benefits
accrued and due and payable to the Executive prior to the Termination Date and
except in the event of a termination
under Section 12(c), the pro rata Bonus Compensation for the fiscal year thereafter ending.  For
purposes of this Agreement, “Termination Date” means (i) if the Executive’s
employment is terminated pursuant to Section 10(a) of this Agreement,
the date of the Executive’s death; (ii) if the Executive’s employment is
terminated by virtue of the expiration of this Agreement, the end of the Term;
or (iii) if the Executive’s employment is terminated pursuant to Section 10(b),
10(c) or 10(d), a date not earlier than sixty (60) days after the date of
the Executive’s receipt of Notice of Termination.

 

(b)                                 If after a Change in
Control (i) the Executive’s employment is terminated by the Company
without Cause or (ii) is terminated by the Executive for Good Reason, then 
the parties agree that the provisions of Section 10(d) shall
terminate and be of no further force and effect and, in addition to
payments and benefits accrued and due and payable to the Executive prior to the
Termination Date and the pro rata Bonus
Compensation for the fiscal year thereafter ending, the Company shall
pay to the Executive as severance,
within five (5) business days after the Termination Date, a lump sum
payment equal to the greater of (i) the
balance of his Salary for the remainder of the existing term of this Agreement,
or (ii) one hundred and fifty percent (150%) of his annual Salary
as then in effect.  The Company shall
also provide Executive with all fringe benefits enjoyed by him at the Termination
Date (on a basis consistent with the basis upon which such benefits were
provided prior to such termination), until the second anniversary of the
Termination Date or, to the extent that Executive is not eligible to
participate in any Company fringe benefit plans (by the terms of any such
plan), the after tax value of providing such benefits until the second
anniversary of the Termination Date.

 

(c)                                  For the purposes of all
retirement plans of the Company applicable to the Executive and in effect on
the date of the Notice of Termination, the Company shall provide for payment of
retirement or death benefits to the Executive or his surviving spouse that are
calculated to reflect service credits for the period ending on the Termination
Date, as though the Executive were an Executive of the Company throughout this
period.

 

(d)                                 Upon termination or expiration of this Agreement
for any reason, any disability insurance policy and life insurance policy
maintained by the Company on the Executive shall be transferred into the name
of the Executive at no cost to the Executive to the extent permitted under such
policies.

 

12.                                 Informal
Dispute Resolution Procedure. 
Except
as set forth below, the parties agree that any dispute arising out of or
relating to the employment relationship between them and/or this Agreement,
including the termination of that relationship and any disputes as to the
enforceability or applicability of this dispute resolution provision, shall be
resolved under the following procedures:

 

(a)                                  The party claiming to be
aggrieved shall furnish to the other party a written statement of the grievance
identifying any witnesses or documents that support the grievance and the
relief requested or proposed.

 

8

 

(b)                                 If the other party does not
agree within five (5) business days after receipt of
the statement to furnish promptly the relief requested or proposed, or
otherwise does not satisfy the demand of the party claiming to be aggrieved
within five business days after receipt of the statement, the parties shall
promptly submit the dispute to nonbinding mediation before a mediator to be
jointly selected by the parties.  The
Company will pay the cost of the mediation.

 

(c)                                  If the mediation does not
produce a resolution of the dispute within five business days after mediation
commences, the parties hereby agree to submit any such dispute, controversy or
claim to binding arbitration in conformance with the J*A*M*S/ENDISPUTE
Arbitration Rules and Procedures for Employment Disputes (“Employment
Rules”) but expressly excluding Rule 20 thereof, and further provided
that, notwithstanding Rule 14 thereof, the parties hereby agree that the
location of any such arbitration shall be Miami, Florida.

 

(d)                                 The arbitrator shall have
the authority to grant any relief authorized by law or in equity; provided,
however, that nothing herein shall limit the right of either party to seek
temporary injunctive relief from a court of competent jurisdiction.  The arbitrator shall not have the authority
to modify, change or refuse to enforce the terms of this Agreement.   Any relief granted hereunder can be enforced
exclusively by a court of competent jurisdiction in Miami-Dade County, Florida.  The parties hereby irrevocably submit in any
such arbitration suit, action or proceeding to be located in Miami-Dade County,
Florida, and waive any and all other forums and objections to such jurisdiction
or venue that they may have under the laws of any state or country, including,
without limitation, any argument that jurisdiction, situs and/or venue are
inconvenient or otherwise improper.  The
prevailing party in any dispute between the parties, including but not limited
to an action to enforce arbitration or an arbitration award, shall be entitled
to an award of reasonable attorney’s fees and costs, including costs of
arbitration notwithstanding Rule 27 of the Employment Rules.

 

(e)                                  Arbitration shall be the
exclusive final remedy for all disputes between the parties, and the parties
agree that no dispute shall be submitted to arbitration if the party claiming
to be aggrieved has not complied with the preliminary steps in paragraphs (a) and
(b) above.

 

(f)                                    Notwithstanding
the foregoing, the Company shall have the right to seek equitable relief
pursuant to Section 11 in the event of a breach of Section 10 of this
Agreement.  In such event, the parties
hereby irrevocably submit in any such arbitration suit, action or proceeding to
be located in Miami-Dade County, Florida, and waive any and all other forums and
objections to such jurisdiction or venue that they may have under the laws of
any state or country, including, without limitation, any argument that
jurisdiction, situs and/or venue are inconvenient or otherwise improper.

 

13.                                 Miscellaneous

 

(a)                                  Survival. The provisions of
Sections 4(g), (i) and (m), 5, 7,
8, 9, 10, 11, 13, 14 and 15 shall survive the termination or expiration of this Agreement.

 

(b)                                 Entire
Agreement: Counterparts. This Agreement sets forth the entire understanding of the
parties regarding the subject matter hereof and merges and supersedes any prior
or contemporaneous agreements between the parties pertaining to the subject
matter hereof. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original. Delivery of executed signature pages hereof
by facsimile transmission shall constitute effective and binding execution and
delivery hereof.

 

(c)                                  Modification. This Agreement may not be
modified or terminated orally, and no modification, termination or attempted
waiver of any of the provisions hereof shall be binding unless in writing and
signed by the parties hereto; provided, however, that Executive’s compensation
may be increased at any time by the Company without in any way affecting any of
the other terms and conditions of this Agreement, which in all other respects
shall remain in full force and effect

 

9

 

(d)                                 Waiver. Failure of a party to
enforce one or more of the provisions of this Agreement or to require at any
time performance of any of the obligations hereof shall not be construed to be
a waiver of such provisions by such party nor to in any way affect the validity
of this Agreement or such party’s right thereafter to enforce any provision of
this Agreement, nor to preclude such party from taking any other action at any
time which it would legally be entitled to take. All waivers to be effective
must be signed by the waiving party.

 

(e)                                  Successors
and Assigns.  Neither party shall have the right
to assign this personal Agreement, or any rights or obligations hereunder,
without the written consent of the other party. Subject to the foregoing, this
Agreement shall inure to the benefit of, and be binding upon, the parties
hereto and their respective legal representatives, heirs, executors,
beneficiaries, estates, personal representatives, legatees, successors and
permitted assigns.

 

(f)                                    Additional
Acts.
The Executive and the Company each agrees to execute, acknowledge and deliver
and file, or cause to be executed, acknowledged and delivered and filed, any
and all further instruments, agreements or documents as may be reasonably
necessary or expedient in order to consummate the transactions provided for in
this Agreement and to do any and all further acts and things as may be
reasonably necessary or expedient in order to carry out the purpose and intent
of this Agreement.

 

(g)                                 Communications. All notices, requests,
demands and other communications under this Agreement shall be in writing and
shall be deemed to have been given at the time personally delivered or five
days after being deposited in the United States mail enclosed in a registered
or certified postage prepaid envelope and addressed to the addresses set forth
below, or to such other address as any party may specify by notice to the other
party; provided, however, that any notice of change of address shall be
effective only upon receipt.

 

	
  To the Company:

  	
  SkyPostal, Inc.

  
	
   

  	
  7805 NW 15th Street,

  
	
   

  	
  Miami, FL 33126

  
	
   

  	
   

  
	
  To the Executive:

  	
  A.J. Hernandez

  
	
   

  	
  7440 SW 115
  St

  
	
   

  	
  Miami, FL
  33356

  
	
   

  	
   

  
	
  With a copy
  to :

  	
  Hunton &
  Williams

  
	
   

  	
  1111 Brickell Avenue, Suite 2500

  
	
   

  	
  Miami,
  Florida 33131

  
	
   

  	
  Attn : Abigail C. Watts-FitzGerald, Esq.

  

 

(h)                                 Severability.  If any provision of this Agreement is held to
be invalid, void or unenforceable by a court of competent jurisdiction, such
invalidity or unenforceability shall not affect the validity and enforceability
of the other provisions of this Agreement and the provision held to be invalid
or unenforceable shall be enforced as nearly as possible according to its
original terms and intent to eliminate such invalidity or unenforceability.

 

(i)                                     Governing
Law.
This Agreement shall be governed by the laws of the State of Florida, without
regard to the conflicts of law principles thereof.

 

(j)                                     Definitions.  For purposes hereof, (i) an “Affiliate”
of any person means any Person or group (now or hereafter existing)
controlling, controlled by or under common control with, the specified person
or entity. and “control” of a person or entity (including, with correlative
meaning, the terms “control by” and “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of an entity or individual, whether 

 

10

 

through the ownership of voting securities, by contract, or
otherwise, and (ii) a “Person” means any Individual, partnership, firm,
trust, association, corporation, joint venture, joint stock company, unincorporated
organization, limited liability company, limited liability partnership,
governmental authority or other entity or organization.

 

IN WITNESS WHEREOF, each of the
parties hereto has duly executed this Agreement as of the date set forth above.

 

 

	
  SkyPostal, Inc.

  
	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:  Albert
  P. Hernandez

  
	
   

  	
  Title:    Chief
  Executive Officer

  
	
   

  
	
   

  
	
  Executive:

  
	
   

  
	
   

  
	
   

  	
  A.J. Hernandez

  
			

 

11

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