Document:

Exhibit 10.32

 

	

    	
Paul Arena
    
	
Chief Executive Officer
    
	
paul.arena@augme.com
    
	
Office: 212.710.9350
    
	
 
    	
Mobile: 404.915.8449
    

 

August 12, 2010

 

VIA EMAIL

philrapp1@yahoo.com

 

Mr. Phillip Rapp, Jr.

4360 Kensington High

Naples, FL 34105

 

Re: Offer of Employment

 

Dear Mr. Rapp:

 

As we discussed, Augme Technologies, Inc., a Delaware Corporation with a principal place of business at 43 West 24th Street Suite 11B, New York, NY 10010  (the “Company”), is pleased to offer you full-time ‘at-will’ employment in the position of Chief Operating Officer.  If you agree to the terms outlined herein, your employment will commence August 12, 2010 (“Employment Start Date”), and you will receive an initial annual salary of one hundred and fifty thousand dollars ($150,000.00).  Further, you will receive a $3,000 per month expense reimbursement for living costs.

 

In addition, subject to your continuous employment with the Company, you will be granted options to purchase five hundred thousand (500,000) shares of the common stock of the Company (the “Common Stock”) with an exercise price equal to the greater of (a) $1.30 per share or (b) the fair market value of the Common Stock as of the Date of Grant (which shall be the date of Board approval).  Any such stock options are subject to the terms of the Company’s standard non-qualified stock option agreement and approval by the Board of Directors of the Company and may be adjusted in the event of any stock split, stock dividend, recapitalization or other similar event.  Subject to your continuous employment with the Company through such dates, any such options granted will vest annually over a three-year period commencing on the Date of Grant (1/3 vesting per year on each anniversary of the Date of Grant, with acceleration language), and such option grant shall have a five (5) year term.

 

In addition to the above salary and stock options, you will be eligible to receive certain performance-based bonuses, (the “Bonus”), subject to your attainment of the performance targets, (the “Target(s)”) identified below as determined by the Company.  Your Bonus opportunities will be determined based upon the extent to which you achieve Targets, as follows:

 

43 W 24th Street, Suite 11B, New York, New York 10010

www.augme.com

 

 

·                  at 100% achievement of the Target of $5 million in Company gross revenues, your Bonus opportunity will be fifty thousand dollars ($50,000.00); and

 

·                  at 100% achievement of the Target of a second $5 million in Company gross revenues, your Bonus opportunity will be an additional fifty thousand dollars ($50,000.00)

 

Any payment made pursuant to the above Performance Bonus arrangements will be made in accordance with the Company’s standard payroll practices and procedures following the conclusion of the Company’s fiscal year-end. Any decision or judgment regarding your right and/or entitlement to a Bonus under the above-referenced arrangements, including your satisfaction of Targets, will be made by the Company in the sole discretion of the Company’s management.

 

During your employment with the Company you will be entitled to all then-current customary employee benefits, subject to plan or program eligibility requirements.  The Company reserves the right to change or rescind its benefit plans and programs and the Company may, in its discretion, alter employee contribution levels.  At present, Company benefits include, among other things, fifteen (15) days paid vacation per year and certain other permitted leaves as described more fully in the Company’s Employee Handbook.  Your vacation days and any other permitted leaves will be pro rated based on the actual months of your employment during the year.  The Company also currently maintains a medical insurance plan with respect to which you will be provided appropriate information and enrollment documents.

 

This offer of employment is contingent upon your execution and delivery of certain Company documents, including the Company’s standard Confidentiality & Non-solicitation Agreement, Computer Users’ Responsibilities and Security Agreement, Employee Handbook and Code of Ethics. The Company’s Employee Handbook and Code of Ethics describe Company rules and policies that govern your conduct as an employee of the Company.

 

Although we anticipate that your employment with us will be mutually satisfactory, your employment with the Company will be “at will.”  This means that you may resign from the Company at any time with or without cause, and, likewise, the Company has the right to terminate your employment at any time with or without cause.  Neither this letter nor any other communication, either written or oral, received by you from the Company, its predecessors, or its agents or affiliates constitutes or should be construed as a contract of employment, unless (1) it is signed by both you and an authorized Executive of the Company, and (2) the agreement expressly provides that it is an employment contract.

 

We hope that you will elect to accept this offer of employment.  To signify your understanding and acceptance of the terms, please sign and return two copies to the Company.  By signing this letter, you acknowledge that no one at the Company has made any promise or other representation to you concerning your employment with the Company, other than as expressly set forth herein.

 

 

On behalf of the Augme team, welcome aboard!  We all are looking forward to a mutually beneficial relationship.

 

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Paul R. Arena
    	
 
    
	
Chief   Executive Officer
    	
 
    
	
Augme   Technologies, Inc.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Phillip   Rapp, Jr.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:Exhibit 10.33

 

AMENDMENT TO OFFER LETTER AGREEMENT

 

The OFFER LETTER AGREEMENT, (the “Agreement”) dated August 12, 2010, by and between Augme Technologies, Inc., a Delaware corporation, with its principal office at 43 W. 24th Street, 11th Floor, New York, NY 10010, (the “Company”) and Phillip Rapp, Jr., (“Employee”) is hereby amended as follows with the remaining provisions of the Agreement remaining in full force and effect.

 

AMENDMENTS:

 

NOW, THEREFORE, in consideration of the foregoing recitals and the covenants and conditions herein set forth, the parties hereto amend the Agreement as follows:

 

1.                                       Paragraph 1 shall be replaced to read as follows:

 

As we discussed, Augme Technologies, Inc., a Delaware Corporation with a principal place of business at 43 West 24th Street Suite 11B, New York, NY 10010  (the “Company”), is pleased to offer you full-time ‘at-will’ employment in the position of Chief Operating Officer for your initial one year term.   If you agree to the terms outlined herein, your employment will commence August 12, 2010 (“Employment Start Date”), and you will receive an initial annual salary of one hundred and fifty thousand dollars ($150,000.00).  Beginning July 1, 2011, your annual salary shall increase to two hundred and twenty five thousand dollars ($225,000.00) and begin your second year term.  Further, you will receive a $3,000 per month expense reimbursement for living costs.

 

2.                                       Paragraph 3 shall be added as follows:

 

TERMINATION

 

Employee’s employment with Employer may be terminated as follows:

 

(a)                   Termination Without Just Cause.

 

(i)            Employer, in its sole discretion, may terminate Employee’s employment hereunder for any reason without Just Cause (as defined below), at any time, by giving written notice to Employee of such intent.

 

(ii)           If Employer terminates Employee’s employment hereunder without Just Cause Employer shall continue to pay to Employee his then-current base salary for a period of twelve months, and it also shall pay his any accrued but unpaid vacation time, any other accrued but unpaid benefits and reimbursement of all unpaid business expenses (in each case, as of the date of termination) (collectively the “Continued Benefits”). Upon the effective date of termination, any bonus earned shall be due and payable.

 

 

(b)           Termination With Just Cause.

 

(i)            Employer may immediately terminate Employee’s employment hereunder for Just Cause (as defined below) at any time upon delivery of written notice to Employee.

 

(ii)           For purposes of this Agreement, the phrase “Just Cause” means: (A) Employee’s material fraud, gross malfeasance, gross negligence, or willful misconduct done in bad faith, with respect to Employer’s business affairs; (B) Employee’s refusal or repeated failure to follow Employer’s established reasonable and lawful policies of Employer; (C) Employee’s material breach of this Agreement; or (D) Employee’s conviction of a felony or crime involving moral turpitude.

 

(iii)          If Employee’s employment hereunder is terminated by Employer for Just Cause, Employer will be required to pay to Employee only that portion of his Base Salary, accrued vacation, and to the extent required under the terms of any benefit plan or this Agreement, the vested portion of any benefit under such plan, all as earned through the date of termination.

 

(c)                   For Good Reason.

 

(i)            Employee may terminate employment hereunder For Good Reason (as defined below), at any time, by giving written notice to Employer of such intent at least 30 days in advance of the effective date of termination.

 

(ii)           For purposes of this Agreement, the phrase “For Good Reason” means (A) any reduction in duties, responsibility, position or compensation; (B) relocation of the Employee from the Atlanta area; (C) Employer’s material breach of this Agreement; or (D) Employer’s refusal or failure to establish and follow lawful policies and practices.

 

(iii)          If Employee terminates employment hereunder For Good Reason, Employer shall continue to pay to Employee the Continued Benefits for the Continuation Period.  Employee shall be entitled to continued participation in all medical and disability plans, to the extent such plans are provided by Employer, at the same benefit level at which he was participating on the date of termination of the Employee’s employment until the expiration of the Continuation Period.

 

(d)                   Disability and Death.

 

Employee’s employment hereunder will be terminated immediately upon his disability (as determined for purposes of Employer’s long-term disability plan) or his death.  If Employee’s employment is terminated; (i)  due to such disability due to the inability to perform essential job functions and inability to work at all for a lengthy period of time;  or (ii)  death, Employee or Employee’s estate, as the case may be, shall receive, in addition to the amounts payable under Employer’s short-term and long-term disability plans or life insurance plans (as applicable), only his base salary and accrued vacation, earned through the date of termination, and to the extent required under the terms of any benefit plan or this Agreement, the vested portion of any benefit under such plan.  Employee or Employee’s estate, as the case may be, will not by operation of this provision forfeit any rights in which Employee is vested at the time of Employee’s disability or death.

 

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IN WITNESS WHEREOF, this amendment is dated as of the 27th day of June, 2011.

 

 

	
 
    	
On   Behalf of Employer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Paul   R. Arena, Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Phillip   Rapp, Jr., Employee
    

 

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