Document:

Exhibit
10.54

 

TIM MOXON EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”) is entered into on October 19, 2004 (“the Effective Date”),
by and between Metroplex Control Systems, Inc., a Texas corporation (the “Corporation”),
and Mr. Tim Moxon, an individual residing at 15807 Eagle Cliff, San
Antonio, Texas 78232 (the “Executive”) under the following terms and
conditions:

 

RECITALS:

 

WHEREAS, the Executive
and the Corporation are currently operating under an at-will employment
arrangement (the “Former Arrangement’) pursuant to which the Executive was entitled
to certain compensation and benefits; and

 

WHEREAS, the execution
and delivery of this Agreement, as a new contract to completely supersede the
Former Arrangement, is an inducement and a condition to tie consummation by
William Blair Mezzanine Capital Fund III, L.P. 
(the “Investor”), of that certain Loan Agreement, dated as of the
Effective Date, by and among the Investor, 1ST Detention Contracting Group, Inc.,
a Delaware Corporation (“ISI Delaware”) tie ultimate parent corporation of the
Corporation and all the shareholders of ISI Delaware, which provides for the completion
of a loan to ISI Delaware and the delivery to the Investor of Warrants for
capital stock in 1ST Delaware; and

 

WHEREAS, the Corporation
desires to continue to employ the Executive in the capacity hereinafter stated,
and the Executive desires to continue in the employ of the Corporation in such capacity
for the period and on the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth below, it is
hereby covenanted and agreed by the Corporation and the Executive as follows:

 

1.     Employment Period. The Corporation hereby agrees to continue to
employ the Executive as its CFO, and in which capacities, the Executive agrees
to provide services to the Corporation for the period beginning on the
Effective Date and ending on the fifth anniversary of the Effective Date (the “Employment
Period”).  The Employment Period shall automatically
renew until the sixth anniversary of the Effective Date, unless the Corporation
or the Executive gives written notice to the contrary to the Executive or the
Corporation, respectively, at least sixty (60) days prior to the fifth anniversary
of the Effective Date.

 

2.     Performance of Duties.

 

(a)           The
Executive agrees that during the Employment Period, while he is employed by the
Corporation, he shall devote his full time, energies and talents exclusively to
serving in the capacity of CFO of the Corporation in the best interests of the
Corporation, and to perform the duties assigned to him by the Board of
Directors of the Corporation (the ‘Board’) faithfully, efficiently and in a
professional manner.

 

(b)           Subject
to Section 2(c) below, he Executive shall not, without prior written
consent from the Board:

 

(i)    serve
as, be a consultant to or employee, officer, manager, agent, or director of,
any corporation, partnership or other entity other than the Corporation (other
than civic, charitable, or other public service organizations) if, as
determined at the reasonable discretion of the Board, such service, employment,
or position would have a material adverse effect upon the ability of the
Executive to perform

 

 

his
duties hereunder; or

 

(ii)   have
more than a five percent (5%) ownership interest in any enterprise other than
the Corporation if such ownership interest would have a material adverse effect
upon the ability of the Executive to perform his duties hereunder.

 

3.     Compensation Subject to the terms and conditions of this
Employment Agreement, during the Employment Period, while he is employed by the
Corporation, the Executive shall be compensated by the Corporation for his
services as follows:

 

(a)                                  The
Executive shall receive, for each consecutive twelve (12) month period
beginning on the Effective Date and each anniversary thereof, a rate of salary
that is not less than $105,000.00 per year (“Annual Salary”).

 

(b)                                 The
Executive shall be eligible to receive incentive compensation payments as
follows:

 

As an Annual Bonus, in
addition to the Annual Salary described above, the Executive shall be paid,
Fifteen Percent (15%) of the Nine Percent (9%) bonus Pool, including all
entities of 1ST Delaware.

 

(c)           During
the Employment Period the Executive’s rate of Annual Salary and amount of
Annual Bonus shall be reviewed by the Board on or before each anniversary of
the Commencement Date to determine whether an increase in the Executive’s
compensation is appropriate. In addition to the annual review by the Board set
forth herein, the Executive’s rate of Annual Salary shall be annually adjusted
to be with equivalent executive positions within the Corporation.

 

(d)           The
Executive shall be a participant in executive benefit plans maintained by the
Corporation on substantially the same terms and conditions as other senior
executives of the Corporation. Said benefit plan shall, at a minimum, include
full payment by the Corporation of all health/medical care insurance coverage
for the Executive and all of Executive’s dependents, including his wife and
children. The Corporation, shall, to the extent permitted by law, create a
medical savings plan, permitting the Executive to deduct from income up to the
maximum amount permitted annually, all of which sum is to be applied b the
payment of medical expenses, and any unused portion shall annually be rolled
forward for use the following year.

 

(e)           The
Executive shall be reimbursed by the Corporation for all reasonable business,
promotional, travel and entertainment expenses incurred or paid by the
Executive during the Employment Period in the performance of his services under
this Employment Agreement: (i) provided that such expenses constitute
business deductions from taxable income for the Corporation and are excludable
from taxable income to the Executive under the governing laws and regulations
of the Internal Revenue Code; and (ii) to the extent that such expenses do
not exceed the amounts allocable for such expenses in budgets that are approved
from time to time by the Corporation   In
order that the Corporation reimburses the Executive for such allowable
expenses, the Executive shall furnish to the Corporation, in a timely fashion,
the appropriate documentation required by the Internal Revenue Code in
connection with such expenses and shall 

 

 

furnish such other
documentation and accounting as the Corporation may from time to time
reasonably request. As used herein the term “Internal Revenue Code” shall mean
Internal Revenue Code of 1986, as now or hereafter amended, and the regulations
and revenue rulings and procedures issued pursuant thereto from time to time.

 

(f)                                    The
Corporation shall, at its sole cost and expense for both hardware and usage,
provide the Executive with a cell phone.

 

(g)                                 As
part of the transaction anticipated to be concluded and closed with the Investor,
the Executive shall be made eligible to participate in a pool of Stock Options,
providing the Executive with options to purchase common stock in 1ST Delaware,
such that upon full dilution, and the exercise of all options, the Executive
will own 1.9% of the ownership interest in 1ST Delaware.

 

(h)                                 Notwithstanding
anything to the contrary contained herein, any vote or consent of the Board
required or permitted hereunder shall exclude any vote by the Executive in his
capacity as a member of the Board.

 

4.     Restrictive Covenants. The Executive acknowledges and agrees
that:

 

(a)                                  the
Executive has a major responsibility for the operation, development, and growth
of the Corporation’s business;

 

(b)                                 the
Executive’s work for the Corporation has brought him and will continue to bring
him into close contact with confidential information of the Corporation and its
customers; and

 

(c)                                  the
agreements and covenants contained in this Paragraph 4 are essential to protect
the business interests of the Corporation and that the Corporation will not
enter into this Agreement but for such agreements and covenants. Accordingly,
the Executive covenants and agrees to the following:

 

(i)             Confidential
Information. Except as may be required by the lawful order of a court or agency
of competent jurisdiction, the Executive agrees to keep secret and
confidential, both during the Employment Period and indefinitely after the
Executive’s employment with the Corporation terminates for any reason or no reason,
all non-public information concerning the Corporation and its affiliates that
was acquired by, or disclosed to, the Executive during the course of his
employment by the Corporation or any of its subsidiaries or affiliates,
including information relating to customers (including, without limitation,
credit history, repayment history, financial information and financial
statements), costs, and operations, financial data and plans, whether past,
current or planned and not to disclose the same, either directly or indirectly,
to any other person, firm or business entity, or to use it in any way; provided,
however, that the provisions of this Subparagraph 4(c)(i) shall not apply
to information that: (A) was, is now, or becomes generally available to
the public (but not as a result of a breach of any duty of confidentiality by
which the Executive is bound); (B) was disclosed to the Executive by a
third party not subject to any duty of confidentiality to the Corporation prior
to its disclosure to the Executive; or (C) is disclosed by the Executive
in the ordinary 

 

 

course of the Corporation’s
business as a proper part of his employment in connection with communications
with customers, vendors and other proper parties, provided that it is for a
proper business purpose solely for the benefit of the Corporation The Executive
further agrees that he shall not make any statement or disclosure that (1) would
be prohibited by applicable Federal or state laws, or (2) is intended to
be detrimental to the Corporation or any of its subsidiaries or affiliates.

 

(ii)          Non-Competition.

 

(A)      The Executive agrees that
for the period commencing on the Effective Date and ending on the second
anniversary of the date on which the Executive’s employment with the Corporation
is terminated for any reason or no reason (the “Non-Competition Period”), the
Executive shall not directly or indirectly, alone or as a partner, officer,
director, manager, employee, consultant, agent, independent contractor, member
or stockholder of any person or entity (‘Person’), engage in any business
activity in North America that is directly or indirectly in competition with the
Business of the Corporation or which is directly or indirectly detrimental to
the Business or business plans of the Corporation or its subsidiaries or
affiliates; provided, however, that the record or beneficial ownership by the Executive
of Five Percent (5%) or less of the outstanding publicly traded capital stock
of any company for investment purposes shall not be deemed to be in violation of
this Subparagraph4(c)(ii) so long as the Executive is not an officer,
director, manager, employee or consultant of such Person. The “Business” of the
Corporation shall mean the actual or intended business of the Corporation and
its subsidiaries and affiliates during the Employment Period and as of the date
the Executive leaves the employment of the Corporation for any reason or no
reason As of the date hereof, the Business of the Corporation is providing
design, engineering, procurement, installation, maintenance and related goods
and services to: (x) the detention facilities construction and renovation
industry; (y)  the industrial/commercial controls and fire and security
alarm industry; and (z) the access control and security observation industry,
and other related businesses. The Executive further agrees that during the
Non-Competition Period, he shall not in any capacity, either separately or in
association with others: (1) employ or solicit for employment or endeavor
in any way to entice away from employment with the Corporation or its
affiliates (a) any current employee of the Corporation or its affiliates
or (b)any Person who was employed by the Corporation or its affiliates in any preceding
twelve (12) month period; (2) solicit, induce or influence any supplier,
customer, agent, consultant or other Person that has a business relationship
with the Corporation to discontinue, reduce or modify such relationship with
the Corporation nor (3) solicit or enter into negotiations with any of the
Corporation’s identified potential acquisition candidates.

 

 

(B)   The
Employee understands that the foregoing restrictions may limit his ability to
engage in a business similar to the Corporation’s Business for the duration of
the Non- Competition Period, but acknowledges that he will receive sufficiently
high remuneration and other benefits to justify such restriction as an employee
of the Corporation pursuant to this Agreement.

 

(iii)  Remedies.
If the Executive breaches, or threatens to commit a breach of any of the
provisions contained in Subparagraphs 4(c)(i) and 4(c)(ii) (the “Restrictive
Covenants”), the Corporation shall have the following rights and remedies, each
of which shall be enforceable, and each of which is in addition to, and not in
lieu of, any other rights and remedies available to the Corporation at law or
in equity.

 

(A)      The Executive shall account
for and pay over to the Corporation all compensation, profits, and other
benefits which inure to the Executive’s benefit which are derived or received
by the Executive or any person or business entity controlled by the Executive,
resulting from any action or transactions constituting a breach of any of the
Restrictive Covenants.

 

(B)        Notwithstanding the
provisions of Subparagraph 4(c)(iii) (A) above, the Executive
acknowledges and agrees that in the event of a violation or threatened
violation of any of the Restrictive Covenants, the Corporation shall have no
adequate remedy at law and shall therefore be entitled to enforce each such provision
by temporary or permanent injunction or mandatory relief obtained in any court
of competent jurisdiction without the necessity of proving damages, posting any
bond or other security, and without prejudice to any other rights and remedies
that may be available at law or in equity, and the Corporation shall also be
entitled to recover its attorneys’ fees and costs incurred to enforce any of
the Restrictive Covenants from the Executive.

 

(C)        Notwithstanding any other
provisions hereof, Executive irrevocably acknowledges the standing and right of
1ST Delaware to enforce the Restrictive Covenants, and Executive intentionally
and knowingly waives and relinquishes any and all right to object to any action
by ISI Delaware to enforce the Restrictive Covenants set forth herein.

 

(iv)  Severability.
If any of the Restrictive Covenants, or any part thereof, are held to be
invalid or unenforceable, the same shall not affect the remainder of the
covenant or covenants, which shall be given full effect, without regard to the
invalid or unenforceable portions. Without limiting the generality of the
foregoing, if any of the Restrictive Covenants, or any part thereof, are held
to be unenforceable because of the duration of such provision or the area covered
thereby, the parties hereto agree that the court making 

 

 

such determination shall
have the power to reduce the duration and/or area of such provision and, in its
reduced form, such provision shall then be enforceable.

 

(v)         Proprietary Rights.  The Executive acknowledges and agrees that all
know-how, documents, reports, plans, proposals, marketing and sales plans,
client lists, client files, and any materials made by the Executive or by the
Corporation are the property of the Corporation and shall not be used by the
Executive h any way adverse to the Corporation’s interests. The Executive shall
not deliver, reproduce, or in any way allow such documents or things to be
delivered or used by any third party without specific direction or consent of
the Board.  The Executive hereby assigns
to the Corporation any rights that he may have in any such trade secret or proprietary
information.

 

5.     Termination and Compensation Due upon Termination Except as
otherwise provided under the executive benefit plans (as in effect on the date
hereof) maintained by the Corporation in which the Executive participates in
accordance with Subparagraph 3(c), the Executive’s right to compensation for
periods after the date the Executive’s employment with the Corporation
terminates shall be determined in accordance with the following:

 

(a)                                  Termination
Without Cause. In the event the Corporation terminates the Executive’s employment
under this Agreement without Cause, the Corporation shall pay the Executive any
compensation and benefits the Corporation owes to the Executive through the
effective date of termination. Additionally, the Executive shall:

 

(i)             receive payment of
his salary (as of the date of termination) in accordance with the provisions of
Subparagraph 3(a) for twelve (12) months; and

 

(ii)          receive payment of any
incentive compensation payments that otherwise would have been payable to the
Executive under Subparagraph 3(b) through the effective date of
termination.

 

(iii)       without further action of
the Corporation, be conclusively deemed to have received an automatic, complete
and final release, from any duty or obligation to comply with the Restrictive
Covenants in Subparagraph 4(c)(ii) above, immediately after the due date
of the final payment of salary pursuant to Subparagraph 5(a)(i); provided, however,
the Corporation may elect to continue such Restrictive Covenants and shall have
the right to enforce same upon payment to the Company of additional severance
payments including salary prorated over the extension period.

 

(b)           Voluntary
Resignation.  The Executive may terminate
his employment with the Corporation, and any other entity owned or controlled
in whole or in part by ISI Delaware, for any reason (or no reason at all) at
any time by giving the Corporation ninety (90) days prior written notice of
voluntary resignation; provided, however, that the Corporation may decide that
the Executive’s voluntary resignation be effective immediately upon notice of such
resignation. The Corporation shall have no obligation to make payments to the Executive
in accordance with the provisions of Paragraph 3 for periods after the date on
which the Executive’s employment with the Corporation terminates due to the
Executive’s 

 

 

voluntary resignation.
The Restrictive Covenants shall continue in effect after such voluntary
resignation.

 

However, for purposes of
this Paragraph 5, if the Executive resigns following the occurrence of one of
the following events, the Executive shall be deemed to be terminated without
Cause in accordance with Subparagraph 5(a) above:

 

(i)             the Executive’s
duties are materially reduced from those described in Paragraph 2 above;

 

(ii)          the relocation of the
Executive’s office outside Bexar County, Texas without the Executive’s consent;
or

 

(iii)       a material breach of any of
the provisions of Paragraph 3.

 

(c)                                  Termination
for Cause. The Corporation shall have no obligation to make payments to the
Executive in accordance with the provisions of Paragraph 3 or otherwise for
periods after the Executive’s employment with the Corporation is terminated on
account of the Executive ‘s discharge for Cause. For purposes of this Paragraph
5, the Executive shall be considered terminated for “Cause” if he is discharged
by the Corporation on account of the occurrence of one or more of the following
events:

 

(i)             the Executive becomes
habitually addicted to drugs or alcohol;

 

(ii)          the Executive discloses
confidential information in violation of Subparagraph 4(c)(i) or engages
in any action in violation of Subparagraph 4(c )(ii);

 

(iii)       the Corporation is directed
by regulatory or governmental authorities to terminate the employment of the
Executive or the Executive engages in activities that cause actions to be taken
by regulatory or governmental authorities that have a material adverse effect
on the Corporation

 

(iv)      the Executive is indicted of
a felony crime (other than a felony resulting from a minor traffic violation);

 

(v)         the Executive flagrantly
disregards his duties under this Employment Agreement after (A) written
notice has been given to the Executive by the Board that it views the Executive
to be flagrantly disregarding his duties under this Agreement and (B) the Executive
has been given a period of ten (10) days after such notice to cure such
misconduct. However, no notice or cure period shall be required if Executive’s
disregard of his duties has materially and adversely affected the Corporation,
or is illegal

 

(vi)      any event of egregious
misconduct involving serious moral turpitude to the extent that, in the
reasonable judgment of the Board, the Executive’s credibility and reputation no
longer conform to the standard of the Corporation’s executives; or

 

(vii)   the Executive commits an act of
fraud against the Corporation, violates a duty of loyalty to the Corporation,
or violates Subparagraph 2(a).

 

 

(d)                                 Disability.
The Corporation shall have no obligation to make payments to the Executive in
accordance with the provisions of Paragraph 3 for periods after the date of the
Executive’s employment with the Corporation terminates on account of disability,
except payments due and owing through the effective date of termination. For
purposes of this Subparagraph 5(d), determination of whether the Executive is
disabled shall be determined in accordance with the Corporation’s long term disability
plan (if any) and applicable law.

 

(e)                                  Death.
The Corporation shall have no obligation to make payments to the Executive in
accordance with the provisions of Paragraph 3 for periods after the date of the
Executive’s death, except payments due and owing as of such date.

 

(f)                                    Termination.
A majority of the Board, including the Investor Designee (as defined in the
Purchase Agreement), shall vote or consent with respect to any decision to
terminate the Executive for any reason or no reason.

 

6.     Successors. This Agreement shall be binding on, and inure to the
benefit of, the Corporation and its successors and assigns and any Person
acquiring, whether by merger, consolidation, purchase of all or substantially
all of the Corporation’s assets and business, or otherwise without further
action by the Executive; provided however, that Executive hereby agrees to
execute an acknowledgement of assignment if requested to do so by the
successor, assign or acquiring person.

 

7.     Nonalienation The interests of the Executive under this
Agreement are not subject to the claims of his creditors, other than the
Corporation, and may not otherwise be voluntarily or involuntarily assigned,
alienated or encumbered except for any benefits hereunder that inure to the
Executive’s estate upon his death.

 

8.     Waiver of Breach The waiver by either the Corporation or the
Executive of a breach of any provision of this Agreement shall not operate as,
or be deemed a waiver of, any subsequent breach by either the Corporation or
the Executive.

 

9.     Notice. Any notice to be given hereunder by a party hereto shall
be in writing and shall be deemed to have been given when received or, when
deposited in the U.S. mail, certified or registered mail, postage prepaid:

 

(a)                                  If
to the Executive, at the address set forth in the preamble hereto immediately
following the Executive’s name.

 

(b)                                 If
to the Corporation, to it at:

 

Metroplex Control Systems, Inc.

Attention: Sam Youngblood

12903 Delivery Drive 

San Antonio, Texas 78247 

Tel: (210) 495-5245

 

10.   Amendment. This Agreement may be amended or
canceled by mutual agreement of the parties in writing without the consent of
any other Person and no Person, other than the parties hereto (and the
Executive’s estate upon his death), shall have any rights under or interest in
this Agreement or the subject matter hereof. The parties hereby agree that no
oral conversations shall be deemed to be a modification of this Agreement and
neither party shall assert the same.

 

 

11.   Entire Agreement.  This Agreement contains the entire understanding
of the parties hereto with respect to the subject matter contained herein and
supersedes all prior agreements and understandings, oral and written, with
respect thereto, including, but not limited to, the Former Arrangement.

 

12.   Applicable Law.  The provisions of this Agreement shall be
construed in accordance with the laws of the State of Texas.

 

13.   WAIVER OF JURY TRIAL THE EXECUTIVE AND THE
CORPORATION EXPRESSLY WAIVE ANY RIGHT EITHER MAY HAVE TO A JURY TRIAL CONCERNING
ANY CIVIL ACTION THAT MAY ARISE FROM THIS AGREEMENT, OR THE RELATIONSHIP
OF THE PARTIES HERETO.

 

14.   Termination All of the provisions of this
Agreement shall terminate after the expiration of the Employment Period, except
that Subparagraph 4(c)(i) shall survive indefinitely and Subparagraph 4(c)(ii) shall
terminate upon the expiration of the Non-Competition Period.

 

IN WITNESS WHEREOF, the
Executive and the Corporation have executed this Employment Agreement as of the
day and year first above written.

 

	
   

  	
    “Executive”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    TIM MOXON

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    /Tim Moxon/

  	
   

  
	
   

  	
    Tim Moxon

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    “Corporation”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    Metroplex
  Control Systems, Inc

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    By:

  	
  /Sam Youngblood/

  	
   

  
	
   

  	
    Name: Sam
  Youngblood 

  	
   

  
	
   

  	
    Title: CEOExhibit 10.55

 

MARK MCDONALD EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”) is entered into on October 19, 2004 (“the Effective Date”),
by and between Metroplex Control Systems, Inc., a Texas corporation (the “Corporation~”),
and Mr. Mark McDonald, an individual residing at 24410 Middle Fork, San
Antonio, Texas 78258 (the “Executive”) under the following terms and conditions:

 

RECITALS:

 

WHEREAS, the Executive
and the Corporation are currently operating under an at-will employment arrangement
(the “Former Arrangement”) pursuant to which the Executive was entitled to
certain compensation and benefits; and

 

WHEREAS, the execution
and delivery of this Agreement, as a new contract to completely supersede the
Former Arrangement, is an inducement and a condition to the consummation by
William Blair Mezzanine Capital Fund III, L.P. 
(the “Investor”), of that certain Loan Agreement, dated as of the
Effective Date, by and among the Investor, ISI Detention Contracting Group, Inc.,
a Delaware Corporation (“ISI Delaware”) the ultimate parent corporation of the
Corporation and all the shareholders of ISI Delaware, which provides for the completion
of a loan to ISI Delaware and the delivery to the Investor of Warrants for
capital stock in ISI Delaware; and

 

WHEREAS, the Corporation
desires to continue to employ the Executive in the capacity hereinafter stated,
and the Executive desires to continue in the employ of the Corporation in such capacity
for the period and on the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth below, it is
hereby covenanted and agreed by the Corporation and the Executive as follows:

 

1.               Employment Period.
The Corporation hereby agrees to continue to employ the Executive as its
President, and in such capacity, the Executive agrees to provide services to
the Corporation for the period beginning on the Effective Date and ending on
the fifth anniversary of the Effective Date (the “Employment Period”).  The Employment Period shill automatically renew
until the sixth anniversary of the Effective Date, unless the Corporation or
the Executive gives written notice to the contrary to the Executive or the
Corporation, respectively, at least sixty (60) days prior to the fifth
anniversary of the Effective Date.

 

2.               Performance of
Duties.

 

(a)           The
Executive agrees that during the Employment Period, while he is employed by the
Corporation, he shall devote his full time, energies and talents exclusively to
serving in the capacity of President of the Corporation in the best interests
of the Corporation, and to perform the duties assigned to him by the Board of
Directors of the Corporation (the “Board”) faithfully, efficiently and in a
professional manner.

 

(b)           Subject
to Section 2(c) below, the Executive shall not, without prior written
consent from the Board:

 

(i)    serve
as, be a consultant to or employee, officer, manager, agent, or director of,
any corporation, partnership or other entity other than the Corporation (other
than civic, charitable, or other public service organizations) if, as
determined at the reasonable discretion

 

 

of the Board, such
service, employment, or position would have a material adverse effect upon the
ability of the Executive to perform his duties hereunder; or

 

(ii)          have more than a five
percent (5%) ownership interest in any enterprise other than the Corporation if
such ownership interest would have a material adverse effect upon the ability
of the Executive to perform his duties hereunder.

 

3.               Compensation
Subject to the terms and conditions of this Employment Agreement, during the
Employment Period, while he is employed by the Corporation, the Executive shall
be compensated by the Corporation for his services as follows:

 

(a)                                  The
Executive shall receive, for each consecutive twelve (12) month period
beginning on the Effective Date and each anniversary thereof, a rate of salary
that is not less than $125,000.00 per year (“Annual Salary”).

 

(b)                                 The
Executive shall be eligible to receive incentive compensation payments as
follows:

 

As an Annual Bonus, in
addition to the Annual Salary described above, the Executive shall be paid, on
or before March 15 of each year the sum of Five Percent (5%) of the Total
Gross Margin of Metroplex Control Systems Detention, that exceeds
$1,500,000.00, for the period of January through December of the
preceding year (less any advances paid to Executive upon said Annual Bonus).

 

(c)                                  In
addition to other amounts set forth herein, the Corporation shall pay to Executive
a gross advance on his Annual Bonus of $19,000.00, to be paid in approximately
equal amounts in each pay period subject to normal tax withholding.

 

(d)                                 During
the Employment Period the Executive’s rate of Annual Salary and amount of
Annual Bonus shall be reviewed by the Board on or before each anniversary of
the Commencement Date to determine whether an increase in the Executive’s
compensation is appropriate. In addition to the annual review by the Board set
forth herein, the Executive’s rate of Annual Salary shall be annually adjusted
to be with equivalent executive positions within the Corporation.

 

(e)                                  The
Executive shall be a participant in executive benefit plans maintained by the
Corporation on substantially the same terms and conditions as other senior
executives of the Corporation.  Said
benefit plan shall, at a minimum, include full payment by the Corporation of
all health/medical care insurance coverage for the Executive and all of
Executive’s dependents, including his wife and children. The Corporation, shall,
to the extent permitted by law, create a medical savings plan, permitting the Executive
to deduct from income up to the maximum amount permitted annually, all of which
sum is to be applied to the payment of medical expenses, and any unused portion
shall annually be rolled forward for use the following year.

 

(f)                                    The
Executive shall be reimbursed by the Corporation for all reasonable business,
promotional, travel and entertainment expenses incurred or paid by the
Executive during the Employment Period in the performance of his services under
this Employment Agreement: (i) provided that such

 

 

expenses constitute
business deductions from taxable income for the Corporation and are excludable
from taxable income to the Executive under the governing laws and regu1atiot~
of the Internal Revenue Code; and (ii) to the extent that such expenses do
not exceed the amounts allocable for such expenses in budgets that are approved
from time to time by the Corporation In order that the Corporation reimburses
the Executive for such allowable expenses, the Executive shall furnish to the Corporation,
in a timely fashion, the appropriate documentation required by the Internal
Revenue Code in connection with such expenses and shall furnish such other
documentation and accounting as the Corporation may from time to time
reasonably request. As used herein the term “Internal Revenue Code” shall mean
Internal Revenue Code of 1986, as now or hereafter amended, and the regulations
and revenue rulings and procedures issued pursuant thereto from time to time.

 

(g)                                 The
Corporation shall, at its sole cost and expense for both hardware and usage,
provide the Executive and his spouse with cell phones.

 

(h)                                 Notwithstanding
anything to the contrary contained herein, any vote or consent of the Board
required or permitted hereunder shall exclude any vote by the Executive in his
capacity as a member of the Board.

 

4.               Restrictive
Covenants. The Executive acknowledges and agrees that:

 

(a)                                  the
Executive has a major responsibility for the operation, development, and growth
of the Corporation’s business;

 

(b)                                 the
Executive’s work for the Corporation has brought him and will continue to bring
him into close contact with confidential information of the Corporation and its
customers; and

 

(c)                                  the
agreements and covenants contained in this Paragraph 4 are essential to protect
the business interests of the Corporation and that the Corporation will not
enter into this Agreement but for such agreements and covenants. Accordingly,
the Executive covenants and agrees to the following:

 

(1)   Confidential
Information. Except as may be required by the lawful order of a court or agency
of competent jurisdiction, the Executive agrees to keep secret and
confidential, both during the Employment Period and indefinitely after the
Executive’s employment with the Corporation terminates for any reason or no reason,
all nonpublic information concerning the Corporation and its affiliates that
was acquired by, or disclosed to, the Executive during the course of his
employment by fir Corporation or any of its subsidiaries or affiliates,
including information relating to customers (including, without limitation,
credit history, repayment history, financial information and financial
statements), costs, and operations, financial data aid plans, whether past,
current or planned and not to disclose the same, either directly or indirectly,
to any other person, firm or business entity, or to use it in any way; provided,
however, that the provisions of this Subparagraph 4(c)(i) shall not apply
to information that: (A) was, is now, or becomes generally available to
the public (but not as a result of a breach of any duty of confidentiality by
which the Executive is bound);

 

(B) was disclosed to the
Executive by a third party not subject to any duty of confidentiality to the
Corporation prior to its disclosure to the Executive; or (C) is disclosed
by the Executive in the ordinary course of the Corporations business as a
proper part of his employment in connection with communications with customers,
vendors and other proper parties, provided that it is for a proper business
purpose solely for the benefit of the Corporation The Executive farther agrees
that he shall not make any statement or disclosure that (1) would be
prohibited by applicable Federal or state laws, or (2) is intended to be
detrimental to the Corporation or any of its subsidiaries or affiliates.

 

(ii)          Non-Competition.

 

(A)      The Executive agrees that
for the period commencing on the Effective Date and ending on the second anniversary
of the date on which the Executive’s employment with the Corporation is
terminated for any reason or no reason (the “Non-Competition Period”), the
Executive shall not directly or indirectly, alone or as a partner, officer,
director, manager, employee, consultant, agent, independent contractor, member
or stockholder of any person or entity (“Person”), engage in any business
activity in North America that is directly or indirectly in competition with the
Business of the Corporation or which is directly or indirectly detrimental to
the Business or business plans of the Corporation or its subsidiaries or
affiliates; provided, however, that the record or beneficial ownership by the Executive
of Five Percent (5%) or less of the outstanding publicly traded capital stock
of any company for investment purposes shall not be deemed to be in violation of
this Subparagraph4(c)(ii) so long as the Executive is not an officer,
director, manager, employee or consultant of such Person. The “Business” of the
Corporation shall mean the actual or intended business of the Corporation and
its subsidiaries and affiliates during the Employment Period and as of the date
the Executive leaves the employment of the Corporation for any reason or no
reason As of the date hereof~ the Business of the Corporation is providing
design, engineering, procurement, installation, maintenance and related goods
and services to: (x) the detention facilities construction and renovation
industry; (y) the industrial/commercial controls and fire and security
alarm industry; and (z) the access control and security observation industry,
and other related businesses. The Executive further agrees that during the
Non-Competition Period, he shall not in any capacity, either separately or in
association with others: (1) employ or solicit for employment or endeavor
in any way to entice away from employment with the Corporation or its
affiliates (a) any current employee of the Corporation or its affiliates
or (b) any Person who was employed by the Corporation or its affiliates in
any preceding twelve (12) month period; (2) solicit, induce or influence
any supplier, customer, agent, consultant or other Person that has a business
relationship with the Corporation to discontinue, reduce or modify such
relationship with the

 

 

Corporation nor (3) solicit
or enter into negotiations with any of the Corporation’s identified potential
acquisition candidates.

 

(B)        The Employee understands
that the foregoing restrictions may limit his ability to engage in a business
similar to the Corporation’s Business for the duration of the Non-Competition
Period, but acknowledges that he will receive sufficiently high remuneration
and other benefits to justify such restriction as an employee of the
Corporation pursuant to this Agreement.

 

(iii)  Remedies.
 If the Executive breaches, or threatens
to commit a breach of any of the provisions contained in Subparagraphs 4(c)(i) and
4(c)(ii) (the “Restrictive Covenants”), the Corporation shall have the
following rights and remedies, each of which shall be enforceable, and each of
which is in addition to, and not in lieu of, any other rights and remedies
available to the Corporation at law or in equity.

 

(A)            The
Executive shall account for and pay over to the Corporation all compensation,
profits, and other benefits which inure to the Executive’s benefit which are
derived or received by the Executive or any person or business entity controlled
by the Executive, resulting from any action or transactions constituting a
breach of any of the Restrictive Covenants.

 

(B)            Notwithstanding
the provisions of Subparagraph 4(c)(iii) (A) above, the Executive
acknowledges and agrees that in the event of a violation or threatened
violation of any of the Restrictive Covenants, the Corporation shall have no
adequate remedy at law and shall therefore be entitled to enforce each such
provision by temporary or permanent injunction or mandatory relief obtained in
any court of competent jurisdiction without the necessity of proving damages,
posting any bond or other security, and without prejudice to any other rights
and remedies that may be available at law or in equity, and the Corporation
shall also be entitled to recover its attorneys’ fees and costs incurred to
enforce any of the Restrictive Covenants from the Executive.

 

(C)            Notwithstanding
any other provisions hereof, Executive irrevocably acknowledges the standing
and right of 1Sf Delaware to enforce the Restrictive Covenants, and Executive
intentionally and knowingly waives and relinquishes any and all right to object
to any action by ISI Delaware to enforce the Restrictive Covenants set forth herein.

 

(iv)  Severability.  If any of the Restrictive Covenants, or any
part thereof, are held to be invalid or unenforceable, the same shall not affect
the remainder of the covenant or covenants, which shall be given full effect,
without regard to the invalid or unenforceable portions. Without limiting the
generality of the foregoing, if any

 

 

of the Restrictive
Covenants, or any part thereof, are held to be unenforceable because of the
duration of such provision or the area covered thereby, the parties hereto
agree that the court making such determination shall have the power to reduce
the duration and/or area of such provision and, in its reduced form, such provision
shall then be enforceable.

 

(v)   Proprietary Rights.  The Executive acknowledges and agrees that all
know-how, documents, reports, plans, proposals, marketing and sales plans,
client lists, client files, and any materials made by the Executive or by the
Corporation are the property of the Corporation and shall not be used by the
Executive in any way adverse to the Corporation’s interests. The Executive
shall not deliver, reproduce, or in any way allow such documents or things to
be delivered or used by any third party without specific direction or consent
of the Board.  The Executive hereby
assigns to the Corporation any rights that he may have in any such trade secret
or proprietary information.

 

5.     Termination and Compensation Due Upon Termination.  Except as otherwise provided under the
executive benefit plans (as in effect on the date hereof) maintained by the Corporation
in which the Executive participates in accordance with Subparagraph 3(c), the Executive’s
right to compensation for periods after the date the Executive’s employment
with the Corporation terminates shall be determined in accordance with the
following:

 

(a)   Termination Without Cause. In the event the
Corporation terminates the Executive’s employment under this Agreement without
Cause, the Corporation shall pay the Executive any compensation and benefits
the Corporation owes to the Executive through the effective date of termination.
Additionally, the Executive shall:

 

(i)    receive
payment of his salary (as of the date of termination) in accordance with the
provisions of Subparagraph 3(a) for twelve (12) months; and

 

(ii)   receive
payment of any incentive compensation payments that otherwise would have been
payable to the Executive under Subparagraph 3(b) through the effective
date of termination.

 

(iii)  without
further action of the Corporation, be conclusively deemed to have received an
automatic, complete and final release, from any duty or obligation to comply
with the Restrictive Covenants in Subparagraph 4(c)(ii) above, immediately
after the due date of the final payment of salary pursuant to Subparagraph
5(a)(i); provided, however, the Corporation may elect to continue such
Restrictive Covenants and shall have the right to enforce same upon payment to
the Company of additional severance payments including salary prorated over the
extension period.

 

(b)   Voluntary
Resignation.  The Executive may terminate
his employment with the Corporation, and any other entity owned or controlled
in whole or in part by ISI Delaware, for any reason (or no reason at all) at
any time by giving the Corporation ninety (90) days prior written notice of
voluntary resignation; provided, however, that the Corporation may decide that
the Executive’s voluntary resignation be effective immediately upon notice of such
resignation. The Corporation shall have no obligation to make

 

 

payments to the Executive
in accordance with the provisions of Paragraph 3 for periods after the date on
which the Executive’s employment with the Corporation terminates due to the
Executive’s voluntary resignation. The Restrictive Covenants shall continue in
effect after such voluntary resignation.

 

However, for purposes of
this Paragraph 5, if the Executive resigns following the occurrence of one of
the following events, the Executive shall be deemed to be terminated without
Cause in accordance with Subparagraph 5(a) above:

 

(i)    the Executive’s duties are materially
reduced from those described in Paragraph 2 above;

 

(ii)   the relocation of the Executive’s office
outside Bexar County, Texas without the Executive’s consent; or

 

(iii)  a material breach of any of the provisions of
Paragraph 3.

 

(c)   Termination
for Cause. The Corporation shall have no obligation to make payments to the
Executive in accordance with the provisions of Paragraph 3 or otherwise for
periods after the Executive’s employment with the Corporation is terminated on
account of the Executive’s discharge for Cause. For purposes of this Paragraph
5, the Executive shall be considered terminated for “Cause” if he is discharged
by the Corporation on account of the occurrence of one or more of the following
events:

 

(i)    the
Executive becomes habitually addicted to drugs or alcohol;

 

(ii)   the
Executive discloses confidential information in violation of Subparagraph 4(c)(i) or
engages in any action in violation of Subparagraph 4(c)(ii);

 

(iii)  the
Corporation is directed by regulatory or governmental authorities to terminate
the employment of the Executive or the Executive engages in activities that
cause actions to be taken by regulatory or governmental authorities that have a
material adverse effect on the Corporation;

 

(iv)      the
Executive is indicted of a felony crime (other than a felony resulting from a
minor traffic violation);

 

(v)         the
Executive flagrantly disregards his duties under this Employment Agreement
after (A) written notice has been given to the Executive by the Board that
it views the Executive to be flagrantly disregarding his duties under this
Agreement and (B) the Executive has been given a period of ten (10) days
after such notice to cure such misconduct. However, no notice or cure period shall
be required if Executive’s disregard of his duties has materially and adversely
affected the Corporation, or is illegal

 

(vi)      any
event of egregious misconduct involving serious moral turpitude to the extent
that, in the reasonable judgment of the Board, the Executive’s credibility and
reputation no longer conform to the standard of the Corporation’s executives;
or

 

 

(vii) the Executive commits an act of fraud against
the Corporation~ violates a duty of loyalty to the Corporation, or violates Subparagraph
2(a).

 

(d)   Disability.
The Corporation shall have no obligation to make payments to the Executive in
accordance with the provisions of Paragraph 3 for periods after the date of the
Executive’s employment with the Corporation terminates on account of
disability, except payments due and owing through the effective date of
termination. For purposes of this Subparagraph 5(d), determination of whether
the Executive is disabled shall be determined in accordance with the
Corporation’s long term disability plan (if any) and applicable law.

 

(e)   Death.
The Corporation shall have no obligation to make payments to the Executive in
accordance with the provisions of Paragraph 3 for periods after the date of the
Executive’s death, except payments due and owing as of such date.

 

(f)    Termination.
A majority of the Board, including the Investor Designee (as defined in the
Purchase Agreement), shall vote or consent with respect to any decision to
terminate the Executive for any reason or no reason.

 

6.     Successors. This Agreement shall be binding on, and inure to the
benefit of, the Corporation and its successors and assigns and any Person
acquiring, whether by merger, consolidation, purchase of all or substantially
all of the Corporation’s assets and business, or otherwise without further
action by the Executive; provided however, that Executive hereby agrees to
execute an acknowledgement of assignment if requested to do so by the
successor, assign or acquiring person.

 

7.     Nonalienation. The interests of the Executive under this
Agreement are not subject to the claims of his creditors, other than the
Corporation, and may not otherwise be voluntarily or involuntarily assigned,
alienated or encumbered except for any benefits hereunder that inure to the
Executive’s estate upon his death.

 

8.     Waiver of Breach The waiver by either the Corporation or the
Executive of a breach of any provision of this Agreement shall not operate as,
or be deemed a waiver of, any subsequent breach by either the Corporation or
the Executive.

 

9.     Notice. Any notice to be given hereunder by a party hereto shall
be in writing and shall be deemed to have been given when received or, when
deposited in the U.S. mail, certified or registered mail, postage prepaid:

 

(a)   If to the Executive, at the address set forth
in the preamble. hereto immediately following the Executive’s name.

 

(b)   If to the Corporation, to it at:

 

Metroplex Control Systems, Inc.

Attention: Sam Youngblood

12903 Delivery Drive

San Antonio, Texas 78247

Tel: (210) 495-5245

 

10.   Amendment. This Agreement may be amended or
canceled by mutual agreement of the parties in writing without the consent of
any other Person and no Person, other than the parties hereto (and the
Executive’s estate upon his death), shall have any rights under or interest

 

 

in this Agreement or the
subject matter hereof The parties hereby agree that no oral conversations shall
be deemed to be a modification of this Agreement and neither party shall assert
the same.

 

11.   Entire Agreement.  This Agreement contains the entire
understanding of the parties hereto with respect to the subject matter
contained herein and supersedes all prior agreements and understandings, oral
and written, with respect thereto, including, but not limited to, the Former
Arrangement.

 

12.   Applicable Law.  The provisions of this Agreement shall be
construed in accordance with the laws of the State of Texas.

 

13.   WAIVER OF JURY TRIAL. THE EXECUTIVE AND THE
CORPORATION EXPRESSLY WAIVE ANY RIGHT EITHER MAY HAVE TO A JURY TRIAL CONCERNING
ANY CIVIL ACTION THAT MAY ARISE FROM THIS AGREEMENT, OR THE RELATIONSHIP
OF THE PARTIES HERETO.

 

14.   Termination. All of the provisions of this
Agreement shall terminate after the expiration of the Employment Period, except
that Subparagraph 4(c)(i) shall survive indefinitely and Subparagraph 4(c)(ii) shall
terminate upon the expiration of the Non-Competition Period.

 

IN WITNESS WHEREOF, the
Executive and the Corporation have executed this Employment Agreement as of the
day and year first above written.

 

	
   

  	
  “Executive”

  
	
   

  	
   

  
	
   

  	
  MARK MCDONALD

  
	
   

  	
   

  
	
   

  	
  /Mark McDonald/

  
	
   

  	
  Mark
  McDonald

  
	
   

  	
   

  
	
   

  	
  Metroplex Control
  Systems, Inc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /Sam Youngblood/

  
	
   

  	
  Name:  Sam Youngblood

  	 

	
   

  	
  Title: CEO

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