Replies to post #42758 on American Green Inc (ERBB)

[kenco]

Scotty filed an 8K and it says...

ITEM 8.01 OTHER EVENTS

The Company has previously filed a lawsuit against Mr. Kevin Clement, the previous president and CEO of MediaMax Technology Corp. (“MediaMax”), in Maricopa County Superior Court, Arizona on June 20, 2006; the same day the Company’s Board of Directors terminated him for cause. The termination of the Employment Agreement between the Company and Mr. Clement was described in a previous Form 8-K filed by the Company on June 26, 2006. A copy of the Employment Agreement was filed as Exhibit 10.2 on Form 8-K filed by the Company on November 4, 2005.


However, instead of filing a counterclaim in the Arizona Superior Court as a part of his Answer, Mr. Clement, has responded to the Company’s lawsuit against him by filing a separate lawsuit against the Company in the U.S. District Court for the Southern District of New York on July 14, 2006.

The original lawsuit filed by the Company against Mr. Clement cited, among other claims, breach of contract and breaches in his fiduciary responsibility, which Mr. Clement’s Answer denies . Mr. Clement’s lawsuit in New York asserts, among other claims, that the Company breached certain sections of his Employment Agreement, failed to fully compensate him, and violated New York labor law.


And from the employmment contract we have this slight 30 day notice problem

" 8.2.1 With or Without Cause. The Company may terminate the Executive's employment for Cause or without Cause. "Cause" means the Executive's: (i) persistent and repeated refusal, failure or neglect to perform the material duties of his employment under this Agreement (other by reason of the Executive's physical or mental illness or impairment), provided that such Cause shall be deemed to occur only after the Company gave notice thereof to the Executive specifying in reasonable detail the conduct constituting Cause, and the Executive failed to cure and correct his conduct within thirty (30) days after such notice; (ii) committing any act of fraud or embezzlement, provided that such Cause shall be deemed to occur only after the Company gave notice thereof to the Executive specifying in reasonable detail the instances of such conduct, and the Executive had the opportunity to be heard at a meeting of the Board; (iii) breach of any employee non-disclosure, non-competition or assignment of inventions agreement entered into during the Term that results in a material detriment to the Company; (iv) conviction of a felony (including pleading guilty to a felony) or commitment of other acts causing or likely to cause a material detriment to the reputation of the Company; or (v) habitual abuse of alcohol or drugs."

[gregg99]

What am I missing here. Clement launched a lawsuit, to counter the MMXT lawsuit, MMXT has no money, nor does SCMI, and Clement has to pay out of his pocket for legal fees. We already know how the company will pay, and there is nothing to be gained by either party. Even if Clement wins, what is he going to get ? Maybe 6 months salary, and a bunch of worthless shares. The real question regarding this fiasco is the bigger idiot theory. Who is the bigger idiot ? ISsit clement, for taking the job, or the idiots that hired him. My knowledge of the particulars points me to the latter of the two.