FINANCIAL ENGINES, INC. THIRD AMENDED AND RESTATED CONSULTING AGREEMENT
Exhibit 10.6
THIRD AMENDED AND RESTATED CONSULTING AGREEMENT
This Amended and Restated Consulting Agreement (this “Agreement”) is entered into as
of October 1, 2009, by and between Financial Engines, Inc., a California corporation (the
“Company”), and E. Xxxxx Xxxx-Xxxx (“Consultant”), and amends and restates that
certain {Second} Amended and Restated Consulting Agreement dated as of October 16, 2007 (the “Prior Agreement”), by and between the Company and
Consultant, which in turned amended and restated that certain {First} Amended and Restated
Consulting Agreement, dated as of January 23, 2007, which in turn amended and restated that
certain (i) Consulting Agreement dated as of May 1, 2002 and (ii) Consulting Agreement dated as
of July 21, 1998, as amended by Amendment No. 1 thereto dated as of March 1, 2005 and Amendment No.
2 thereto dated as of January 27, 2006, each by and between the Company and Consultant.
1. Consulting Relationship. Beginning on September 1, 1998 (the “Effective
Date”) and during the term of this Agreement, Consultant will serve as “Senior Strategic
Advisor” to the Company and provide consulting services (the “Services”) to the Company as
described on Exhibit A attached to this Agreement. Consultant shall use Consultant’s best
efforts to perform the Services in a manner satisfactory to the Company. Exhibit A shall
also set forth the Additional Services as defined and set forth in Section l(c) below.
(a) Stock Option Grant for Consulting Relationship. In consideration for
providing the Services, the Company granted a nonstatutory stock option to purchase 37,500
shares (on a post split basis) of Common Stock to the Consultant as of the Effective Date
with an exercise price equal to the then fair market value per share of Common Stock on the date of
grant of $0.6667, pursuant to the Company’s standard form of stock option agreement, attached as
Exhibit B. Such shares vest at the following rate: l/48th of such shares shall vest
on each monthly anniversary of the Effective Date, based on Consultant’s continued provision of
Services to the Company. As of the date hereof, the parties acknowledge that such option was
granted on July 10, 1998 and is fully vested.
(b) Fees and Expenses for Consulting Relationship. As consideration for
providing the Services to the Company
(i) during the period from July 21, 1998 until and including April 30, 2002, Consultant
was paid monthly at the rate of $1,000.00 per full day of Services provided (including travel in
connection therewith), subject to reasonable proration for partial day services. Consultant did
not receive such $l,000/day payment for providing services as a member of the Board of Directors,
including attending meetings of the Board of Directors. The parties anticipated that Consultant
would provide Services and/or travel in connection therewith for ten (10) days per month
(including travel to and participation as a director in Board meetings), provided however that the
parties would use their good faith, reasonable efforts to reach accommodation if Consultant
desired to provide Services and/or travel in connection therewith for fewer or more than ten days
per month. The Company reimbursed Consultant for reasonable airfare, hotel, meal and other
reasonable expenses incurred in connection with her provision of Services. As of the date hereof,
the parties acknowledge that all fees and expenses
have been (and no further fees or expenses shall be) paid or reimbursed under this Section
1(b)(i).
(ii) during the period from May 1, 2002 until and including February 28, 2005, Consultant
was paid monthly at the rate of $1,000.00 per full day of Services provided (including travel in
connection therewith), subject to reasonable proration for partial day services. Consultant did not
receive such $l,000/day payment for providing services as a member of the Board of Directors,
including attending meetings of the Board of Directors. The parties anticipated that Consultant
would provide Services and/or travel in connection therewith for four (4) days per month (including
travel to and participation as a director in Board meetings). The Company reimbursed Consultant for
reasonable airfare, hotel, meal and other reasonable expenses incurred in connection with her
provision of Services. In addition, in consideration for providing services on and after May 1,
2002, the Company granted a nonstatutory stock option to purchase 25,000 shares of Common Stock to
the Consultant with an exercise price of $2.00 per share (the then current fair market value per
share of Common Stock), pursuant to the Company’s standard form of stock option agreement. Such
shares vested as the following rate: l/48th of such shares on the 28th of each month after July 28,
2002, based on Consultant’s continued provision of Services to the Company. As of the date hereof,
the parties acknowledge that under this Section l(b)(ii): (A) all Services have been provided, (B)
all compensation in exchange therefore has been paid, (B) the foregoing option was granted on May
1, 2002 and is fully vested, (D) all the foregoing expenses have been reimbursed, and (E) such
section is satisfied and terminated in full.
(c) Additional Services.
(i) Notwithstanding Sections l(a) and l(b) above, from March 1, 2005 until December 31,
2005, Consultant provided additional services in connection with the Company’s public policy
outreach initiative as specifically set forth in Exhibit A attached hereto (the “2005
Additional Services”), and was compensated for such 2005 Additional Services solely by (i) cash
compensation at a rate of $1,000 per day with a commitment by the parties of at least 6 days in the
month of March 2005 and at least 8 days per month each month thereafter and (ii) subject to
approval by the Company’s board of directors, which was received, the issuance of a non-statutory
option to purchase up to 10,000 shares of the Company’s Common Stock at a purchase price of $4.25
per share, subject to vesting such that the 1/10 of the shares shall vest at the end of each month
for ten months, pursuant to the Company’s 1998 Stock Plan and any other agreements thereunder. The
Company also reimbursed Consultant for reasonable airfare, hotel, meal and other expenses incurred
in connection with the performance of the 2005 Additional Services in accordance with the Company’s
reimbursement policies then in effect. As of the date hereof, the parties acknowledge that under
this Section l(c)(i): (A) all 2005 Additional Services have been provided, (B) all compensation in
exchange therefore has been paid, (B) the foregoing option was granted on April 26, 2005 and is
fully vested, (D) all the foregoing expenses have been reimbursed, and (E) such section is
satisfied and terminated in full.
(ii) Notwithstanding Sections 1 (a) and 1 (b) above, from January 27, 2006 until
December 31, 2006, Consultant provided additional services in
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connection with the Company’s public policy outreach initiative as specifically set forth in
Exhibit A attached hereto (the “2006 Additional Services”), and was compensated
during such period solely by (i) cash compensation at a rate of $12,000 per month with a commitment
by the parties of at least 8 days per month and (ii) subject to approval by the Company’s board of
directors, which was received, the issuance of a non-statutory option to purchase up to 50,000
shares of the Company’s Common Stock on January 27, 2006 (the “2006 Vesting Commencement
Date”), at a purchase price of $6.00 per share, subject to vesting such that the 1/48 of the
shares subject to the Option shall vest on the 1-month anniversary of the Vesting Commencement Date
and 1/48 of the total number of Shares subject to the Option shall vest on the 27th of each month
thereafter, pursuant to the Company’s 1998 Stock Plan and any other agreements thereunder. The
parties acknowledge their understanding that such 2006 Option shall continue to vest for so long as
Consultant remains an “employee” of or “consultant” to the Company (each as defined under such 1998
Stock Plan). The Company reimbursed Consultant for reasonable airfare, hotel, meal and other
expenses incurred in connection with the performance of the 2006 Additional Services in accordance
with the Company’s reimbursement policies then in effect. As of the date hereof, the parties
acknowledge that under this Section l(c)(ii): (A) all 2006 Additional Services have been provided,
(B) all compensation in exchange therefore has been paid, (C) the foregoing option was granted on
January 27, 2006 and is subject to the vesting, (D) all the foregoing expenses have been
reimbursed, and (E) such section is satisfied and terminated in full.
(iii) Notwithstanding Sections 1 (a) and 1 (b) above, from January 1, 2007 until July 31,
2007, Consultant provided both the Services and such additional services in connection with the
Company’s public policy outreach initiative as specifically set forth in Exhibit A attached
hereto (the Services and such additional services are collectively referred to as the “2007
Services”), and was compensated during such period for the 2007 Services solely by cash
compensation at a rate of $12,000 per month with a commitment by Consultant to provide at least 8
days per month. The Company also reimbursed Consultant for reasonable airfare, hotel, meal and
other expenses incurred in connection with the performance of the 2007 Services in accordance with
the Company’s reimbursement policies then in effect. As of the date hereof, the parties acknowledge
that under this Section l(c)(iii): (A) all 2007 Services have been provided, (B) all compensation
in exchange therefore has been paid, (C) all the foregoing expenses have been reimbursed, and (D)
such section is satisfied and terminated in full.
(iv) Notwithstanding Sections 1 (a) and 1 (b) above, from August 1, 2007 until December
31, 2007, Consultant shall provide both the Services and such additional services in connection
with the Company’s public policy outreach initiative as specifically set forth in Exhibit A
attached hereto (the Services and such additional services are collectively referred to as the
“Fall 2007 Services”), and shall be compensated during such period for the Fall 2007
Services solely by cash compensation at a rate of $1,600 per day with the number of days as
approved by the Company and Consultant, to include time spent traveling as requested by the
Company. The Company shall also reimburse Consultant for reasonable airfare, hotel, meal and other
expenses incurred in connection with the performance of the Fall 2007 Services in accordance with
the Company’s reimbursement policies then in effect.
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(v) Notwithstanding Sections 1 (a) and 1 (b) above, from October 1, 2009 through June
30, 2010, Consultant shall provide services in connection with the Company’s public policy outreach
initiative as specifically set forth in Exhibit A attached hereto (the “2009-2010 Services”), and
shall be compensated during such period for the 2009-2010 Services solely by cash
compensation at a rate of $1,600 per day with the number of days as approved by the Company
and Consultant, to include time spent traveling as requested by the Company. The Company
shall also reimburse Consultant for reasonable airfare, hotel, meal and other expenses
incurred in connection with the performance of the 2009-2010 Services in accordance with the
Company’s reimbursement policies then in effect.
2. Directorship. The parties acknowledge that Consultant was elected to serve
as a member of the Board of Directors of the Company, effective July 21, 1998, to serve at the
pleasure of the shareholders. For purposes of the Fifth Amended and Restated Shareholders Voting
Agreement dated as of December 20, 2004 by and among the Company and certain shareholders,
Consultant is serving as one of the Other Directors (as defined therein).
(a) Stock Option Grant for Directorship. In consideration for serving as a
member of the Board of Directors,
(i) the Company granted a nonstatutory stock option to purchase
37,500 shares (on a post split basis) of Common Stock to the Consultant as of July 10, 1998 with an
exercise price equal to $1.00 per share (the current fair market value per share of Common Stock)
pursuant to the Company’s standard form of stock option agreement, attached as Exhibit B.
Such shares vested at the following rate: l/4th of such shares on the annual anniversary of the
date of this Agreement, and l/48th of such shares on each monthly anniversary thereafter, based on
Consultant’s continued service as a member of the Board of Directors. The parties acknowledge that
such option was granted on July 10, 1998 and is fully vested as of the date hereof.
(ii) the Company granted a nonstatutory stock option to purchase 25,000 shares of Common
Stock to the Consultant as of May 1, 2002 with an exercise price of $2.00 per share (the then
current fair market value per share of Common Stock), pursuant to the Company’s standard form of
stock option agreement. Such shares vested as the following rate: l/48th of such shares on the 28th
of each month after July 28, 2002, based on Consultant’s continued service as a member of the Board
of Directors. The parties acknowledge that such option was granted on May 1, 2002 and is fully
vested as of the date hereof.
(ii) Additional stock option grants are described in that certain January 12, 2009 letter
to Consultant attached as Exhibit D.
(b) Director Retainer and Expenses. The Company will reimburse
Consultant for reasonable airfare, hotel and meal expenses incurred in connection with
her attendance of meetings of the Board of Directors. Provision for an annual ret
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(c) ainer are set forth in that certain January 12, 2009 letter to Consultant
attached as Exhibit D.
3. Term and Termination. The term of this Agreement shall begin on the date
hereof and expire on the date that is four years after the Effective Date, subject to renewal
upon the parties’ mutual written agreement, provided however that either party may terminate this
Agreement at any time for any reason or no reason without any cost or obligation by giving
written notice to the other party to such effect. For the avoidance of doubt, the parties
agree and acknowledge that this Agreement has been and continues to be effective from July 21, 2002
until December 31, 2007, or until earlier terminated by either party as provided in the immediately
preceding sentence.
4. Independent Contractor. Consultant’s relationship with the Company will be
that of an independent contractor and not that of an employee. Consultant will not be eligible
for any employee benefits, nor will the Company make deductions from payments made to
Consultant for taxes, all of which will be Consultant’s responsibility. Consultant agrees to
indemnify and hold the Company harmless from any liability for, or assessment of, any such
taxes imposed on the Company by relevant taxing authorities. Consultant will have no authority
to enter into contracts that bind the Company or create obligations on the part of the Company
without the prior written authorization of the Company.
5. Supervision of Consultant’s Services. All Services to be performed by
Consultant as the Senior Strategic Advisor will be as agreed between Consultant and the
Company’s Chief Executive Officer or Board of Directors. Consultant will report to the Chief
Executive Officer concerning the Services performed under this Agreement. The nature and
frequency of these reports will be left to the mutual agreement of the Chief Executive Officer
and Consultant.
6. Consulting or Other Services for Competitors. The Company understands that
Consultant does not presently perform or intend to perform, during the term of this Agreement,
consulting or other services for any companies who are in the same or a similar business to
the Company. If, however, Consultant decides to do so, Consultant agrees to notify the Company in
writing in advance (specifying the identity of the entity or the person) and provide
information sufficient to allow the Company to determine if such consulting would conflict with projects
or products of the Company. If the Company determines that such business is in competition with
that conducted by the Company, Consultant will not provide such services to the competing
entity or person.
7. Confidentiality Agreement. Consultant shall sign, or has signed, a Confidential
Information and Invention Assignment Agreement substantially in the form attached to this
Agreement as Exhibit C (the “Confidentiality Agreement”), prior to or on the
date on which Consultant’s consulting relationship with the Company commences.
8. Miscellaneous.
(a) Amendments and Waivers. Any term of this Agreement may be amended or
waived only with the written consent of the parties.
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(b) Sole Agreement. This Agreement, including the Exhibits hereto,
constitutes the sole agreement of the parties and supersedes all oral negotiations and prior
writings with respect to the subject matter hereof. The parties acknowledge that there remains
in effect no other agreement entered into prior to the date first set forth above relating to
compensation of Consultant in her role as a Consultant to or Director of the Company.
(c) Notices. Any notice required or permitted by this Agreement shall be in
writing and shall be deemed sufficient upon receipt, when delivered personally or by a
nationally-recognized delivery service (such as Federal Express or UPS), or by facsimile
transmission (as evidenced by sender’s confirmation receipt) or forty-eight (48) hours after
being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such
notice is addressed to the party to be notified at such party’s address as set forth below or as
subsequently modified by written notice.
(d) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California, without
giving effect to the principles of conflict of laws.
(e) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good
faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the
balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance
of the Agreement shall be enforceable in accordance with its terms.
(f) Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together will constitute one and the same
instrument.
(g) Arbitration. Any dispute or claim arising out of or in connection with
any provision of this Agreement will be finally settled by binding arbitration in Santa Clara,
California in accordance with the rules of the American Arbitration Association by one
arbitrator appointed in accordance with said rules. The arbitrator shall apply California law, without
reference to rules of conflicts of law or rules of statutory arbitration, to the resolution of
any dispute. Judgment on the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of
competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration
in accordance with this paragraph, without breach of this arbitration provision. This Section
8(g) shall not apply to the Confidentiality Agreement.
(h) Advice of Counsel. Consultant acknowledges that, in executing this
agreement, Consultant has had the opportunity to seek the advice of independent legal counsel, and
has read and understood all of the terms and provisions of this agreement. This Agreement shall not
be construed against any party by reason of the drafting or preparation hereof.
[SIGNATURE PAGE FOLLOWS]
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The parties have executed this Agreement on the respective dates set forth below.
| COMPANY: FINANCIAL ENGINES, INC. |
||||
| By: | /s/ Xxxxxxx X. Maggloncalda | |||
| Name: | Xxxxxxx X. Maggloncalda | |||
| Title: | President and CEO | |||
| Date: | __________________ | |||
| Address: | 0000 Xxxxxxxxxxx Xxxx Xxxxx 000 Xxxx Xxxx, XX 00000 |
|||
| Facsimile: | 000-000-0000 | |||
| CONSULTANT: |
||||
| /s/ E. Xxxxx Xxxx-Xxxx | ||||
| E. Xxxxx Xxxx-Xxxx | ||||
| Date: | 10/23/09 | |||
| Address: | <Address> <Address> |
|||
| Facsimile: | ||||
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EXHIBIT A
DESCRIPTION OF CONSULTING SERVICES
| • | Provide strategic advice in product design, marketing, legal compliance and related issues. | |
| • | Develop positions on broad public policy issues related to the Company’s business, such as the privatization of social security and pension policy matters. | |
| • | Author or co-author articles on matters related to the Company’s business for the professional and/or popular press. | |
| • | Make presentations relating to the Company’s business at conferences. | |
| • | Participate in marketing and sales calls where it is deemed mutually appropriate by the Company and Consultant. | |
| • | Provide other services as determined by mutual agreement of the Company and Consultant. |
For the period from March 1, 2005 to December 31, 2005, Additional Services shall consist of:
| • | Work with policy makers to develop legislation or regulation that would increase plan sponsor comfort around using managed accounts as a default investment option, achievable either as part of or separate from the automatic-enrollment safe-harbor guidance. | |
| • | Obtain written, explicit comfort, either through legislation or regulation, regarding managed accounts being a satisfactory default option. | |
| • | Speak on behalf of the Company at industry conferences regarding the items set forth in the above two bullet points. |
For the period from January 27, 2006 to December 31, 2006, Additional Services shall consist of:
| • | Work with policy makers to develop legislation or regulation that would increase plan sponsor comfort around using managed accounts as a default investment option, achievable either as part of or separate from the automatic-enrollment safe-harbor guidance. | |
| • | Obtain written, explicit comfort, either through legislation or regulation, regarding managed accounts being a satisfactory default option. | |
| • | Speak on behalf of the Company at industry conferences regarding the items set forth in the above two bullet points. |
For the period from January 1, 2007 to July 31, 2007, Additional Services shall consist of:
| • | Work with policy makers to develop legislation or regulation that would increase plan sponsor comfort around using managed accounts as a default investment option, achievable either as part of or separate from the automatic-enrollment safe-harbor guidance. | |
| • | Obtain written, explicit comfort, either through legislation or regulation, regarding managed accounts being a satisfactory default option. | |
| • | Speak on behalf of the Company at industry conferences regarding the items set forth in the above two bullet points. |
For the period from August 1, 2007 to December 31, 2007, Additional Services shall consist of:
| • | Work with policy makers to develop legislation or regulation that would increase plan sponsor comfort around using managed accounts as a default investment option, achievable either as part of or separate from the automatic-enrollment safe-harbor guidance. | |
| • | Obtain written, explicit comfort, either through legislation or regulation, regarding managed accounts being a satisfactory default option. | |
| • | Speak on behalf of the Company at industry conferences regarding the items set forth in the above two bullet points, including but not limited to the webinar to be hosted by PSCA and sponsored by the Company expected to occur in the fall of 2007. | |
| • | Provide other services as determined by mutual written agreement of the Company and Consultant. |
For the period from October 1, 2009 through June 30, 2010, Additional Services shall consist of:
| • | Work with policy makers to develop legislation or regulation that would preserve the availability of Advisory Opinion 2001-09A, as determined by mutual written agreement of the Company and Consultant. | |
| • | Speak at Executive Advisor Forum dinner(s) providing a legislative and regulatory update, expected to occur in October 2009 (and possibly also November 2009). | |
| • | Provide other services as determined by mutual written agreement of the Company and Consultant. |
EXHIBIT B
FORM OF STOCK OPTION
AGREEMENT AND PLAN
AGREEMENT AND PLAN
EXHIBIT C
CONFIDENTIAL INFORMATION AND
INVENTION ASSIGNMENT AGREEMENT
INVENTION ASSIGNMENT AGREEMENT
CONFIDENTIAL INFORMATION AND
INVENTION ASSIGNMENT AGREEMENT
INVENTION ASSIGNMENT AGREEMENT
As a condition of my becoming employed (or my employment being continued) or retained as a
consultant (or my consulting relationship being continued) by Financial Engines, Inc., a California
corporation, or by any of its current or future subsidiaries, affiliates, successors or assigns
(collectively, the “Company”), and in consideration of my employment or consulting
relationship with the Company and my receipt of the compensation now and hereafter paid to me by
the Company, I agree to the following:
1. Employment or Consulting Relationship. I understand and acknowledge that
this Agreement does not alter, amend or expand upon any rights I may have to continue in the
employ of or in a consulting relationship with, or the duration of my employment or consulting
relationship with, the Company under any existing agreements between the Company and me or
under applicable law. Any employment or consulting relationship between the Company and
me, whether commenced prior to or upon the date of this Agreement, shall be referred to herein
as the “Relationship.”
2. Confidential Information.
(a) Company Information. I agree at all times during the term of my Relationship
with the Company and thereafter, to hold in strictest confidence, and not to use, except for the
benefit of the Company, or to disclose to any person, firm or corporation without written
authorization of the Board of Directors of the Company, any Confidential Information of the Company
which I obtain or create. I further agree not to make copies of such Confidential Information
except as authorized by the Company. I understand that “Confidential Information”
means any Company proprietary information, technical data, trade secrets or know-how,
including, but not limited to, research, product plans, products, services, suppliers, customer
lists and customers (including, but not limited to, customers of the Company on whom I called or
with whom I became acquainted during the term of my employment), prices and costs, markets,
software, developments, inventions, processes, formulas, technology, designs, drawings,
engineering, hardware configuration information, marketing, licenses, finances, budgets or other
business information disclosed to me by the Company either directly or indirectly in writing,
orally or by drawings or observation of parts or equipment or created by me during the period of
the Relationship, whether or not during working hours. I understand that “Confidential
Information” includes, but is not limited to, information pertaining to any aspects of the
Company’s business which is either information not known by actual or potential competitors of the
Company or is proprietary information of the Company or its customers or suppliers, whether of a
technical nature or otherwise. I further understand that Confidential Information does not include
any of the foregoing items which (i) is in my possession at the time of disclosure as shown by my
files and records immediately prior to the time of, or (ii) disclosure has become publicly known
and made generally available through no wrongful act of mine or of others who were under
confidentiality obligations as to the item or items involved.
(b) Former Employer Information. I represent that my performance of all
terms of this Agreement as an employee or consultant of the Company have not breached and
will not breach any agreement to keep in confidence proprietary information, knowledge or data
acquired by me in confidence or trust prior or subsequent to the commencement of my
Relationship with the Company, and I will not disclose to the Company, or induce the Company
to use, any inventions, confidential or proprietary information or material belonging to any
previous employer or any other party to whom I owe a confidentiality obligation.
(c) Third Party Information. I recognize that the Company has received
and in the future will receive from third parties their confidential or proprietary
information
subject to a duty on the Company’s part to maintain the confidentiality of such information
and
to use it only for certain limited purposes. I agree to hold all such confidential or
proprietary
information in the strictest confidence and not to disclose it to any person, firm or
corporation or
to use it except as necessary in carrying out my work for the Company consistent with the
Company’s agreement with such third party.
3. Inventions.
(a) Inventions Retained and Licensed. I have attached hereto, as Exhibit A,
a list describing all inventions, original works of authorship, developments, improvements,
and
trade secrets which were made by me prior to my employment with the Company (collectively
referred to as “Prior Inventions”), which belong to me, which relate to the Company’s
proposed
business, products or research and development, and which are not assigned to the Company
hereunder; or, if no such list is attached, I represent that there are no such Prior
Inventions. If in
the course of my Relationship with the Company, I incorporate into a Company product, process
or machine a Prior Invention owned by me or in which I have an interest, the Company is hereby
granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide
license to
make, have made, modify, use and sell such Prior Invention as part of or in connection with
such
product, process or machine.
(b) Assignment of Inventions. I agree that I will promptly make full written
disclosure to the Company, will hold in trust for the sole right and benefit of the Company,
and
hereby assign to the Company, or its designee, all my right, title and interest in and to any
and all
inventions, original works of authorship, developments, concepts, improvements or trade
secrets,
whether or not patentable or registrable under copyright or similar laws, which I may solely
or
jointly conceive or develop or reduce to practice, or cause to be conceived or developed or
reduced to practice, during the period of time in which I am employed by or a consultant of
the
Company (collectively referred to as “Inventions”), except as provided in Section 2(e)
below. I
further acknowledge that all inventions, original works of authorship, developments, concepts,
improvements or trade secrets which are made by me (solely or jointly with others) within the
scope of and during the period of my Relationship with the Company are “works made for
hire”
and are compensated by my salary (if I am an employee) or by such amounts paid to me under
any applicable consulting agreement or consulting arrangements (if I am a consultant), unless
regulated otherwise by mandatory law.
-2-
(c) Maintenance of Records. I agree to keep and maintain adequate and
current written records of all Inventions made by me (solely or jointly with others) during
the
term of my Relationship with the Company. The records will be in the form of notes, sketches,
drawings, and any other format that may be specified by the Company. The records will be
available to and remain the sole property of the Company at all times.
(d) Patent and Copyright Registrations. I agree to assist the Company, or
its designee, at the Company’s expense, in every proper way to secure the Company’s rights in
the Inventions and any copyrights, patents, mask work rights or other intellectual property
rights
relating thereto in any and all countries, including the disclosure to the Company of all
pertinent
information and data with respect thereto, the execution of all applications, specifications,
oaths,
assignments and all other instruments which the Company shall deem necessary in order to apply
for and obtain such rights and in order to assign and convey to the Company, its successors,
assigns and nominees the sole and exclusive rights, title and interest in and to such
Inventions,
and any copyrights, patents, mask work rights or other intellectual property rights relating
thereto. I further agree that my obligation to execute or cause to be executed, when it is in
my
power to do so, any such instrument or papers shall continue after the termination of this
Agreement. If the Company is unable because of my mental or physical incapacity or for any
other reason to secure my signature to apply for or to pursue any application for any United
States or foreign patents or copyright registrations covering Inventions or original works of
authorship assigned to the Company as above, then I hereby irrevocably designate and appoint
the Company and its duly authorized officers and agents as my agent and attorney in fact, to
act
for and in my behalf and stead to execute and file any such applications and to do all other
lawfully permitted acts to further the prosecution and issuance of letters patent or copyright
registrations thereon with the same legal force and effect as if executed by me. I hereby
waive
and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or
hereafter have for infringement of any proprietary rights assigned to the Company.
(e) Exception to Assignments. I understand that the provisions of this
Agreement requiring assignment of Inventions to the Company do not apply to any invention
which qualifies fully under the provisions of California Labor Code Section 2870 (attached
hereto as Exhibit B). I will advise the Company promptly in writing of any inventions
that I
believe meet the said provisions and not otherwise disclosed on Exhibit A.
4. Returning Company Documents. I agree that, at the time of termination of my
Relationship with the Company, I will deliver to the Company (and will not keep in my possession,
recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals,
lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items developed by me pursuant to my
employment with the Company or otherwise belonging to the Company, its successors or assigns. I
further agree that to any property situated on the Company’s premises and owned by the Company,
including disks and other storage media, filing cabinets or other work areas, is subject to
inspection by Company personnel at any time with or without notice. In the event of the termination
of my employment, I agree to sign and deliver the “Termination Certification” attached
hereto as Exhibit C.
-3-
5. Notification to Other Parties.
(a) Employees. In the event that I leave the employ of the Company, I hereby
consent to notification by the Company to my new employer about my rights and obligations
under this Agreement.
(b) Consultants. I hereby grant consent to notification by the Company to
any other parties besides the Company with whom I maintain a consulting relationship,
including
parties with whom such relationship commences after the effective date of this Agreement,
about
my rights and obligations under this Agreement.
6. Solicitation of Employees, Consultants and Other Parties. I agree that during
the term of my Relationship with the Company, and for a period of twelve (12) months
immediately following the termination of my Relationship with the Company for any reason,
whether with or without cause, I shall not either directly or indirectly solicit, induce,
recruit or
encourage any of the Company’s employees or consultants to terminate their relationship with
the Company, or take away such employees or consultants, or attempt to solicit, induce,
recruit,
encourage or take away employees or consultants of the Company, either for myself or for any
other person or entity. Further, for a period of twelve (12) months following termination of
my
Relationship with the Company for any reason, with or without cause, I shall not solicit any
licensor to or customer of the Company or licensee of the Company’s products, in each case,
that
are known to me, with respect to any business, products or services that are competitive to
the
products or services offered by the Company or under development as of the date of termination
of my Relationship with the Company.
7. Representations and Covenants.
(a) Facilitation of Agreement. I agree to execute any proper oath or verify
any proper document required to carry out the terms of this Agreement.
(b) Conflicts. I represent that my performance of all the terms of this
Agreement will not breach any agreement to keep in confidence proprietary information acquired
by me in confidence or in trust prior to commencement of my Relationship with the Company. I
have not entered into, and I agree I will not enter into, any oral or written agreement in
conflict
with any of the provisions of this Agreement.
(c) Voluntary Execution. I certify and acknowledge that I have carefully
read all of the provisions of this Agreement and that I understand and will fully and
faithfully
comply with such provision.
8. General Provisions.
(a) Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of California, without
giving effect to the principles of conflict of laws.
-4-
(b) Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the Company and me relating to the subject matter herein and merges all
prior discussions between us. No modification or amendment to this Agreement, nor any waiver
of any rights under this Agreement, will be effective unless in writing signed by the party to
be
charged. Any subsequent change or changes in my duties, obligations, rights or compensation
will not affect the validity or scope of this Agreement.
(c)
Severability. If one or more of the provisions in this Agreement are
deemed void by law, then the remaining provisions will continue in full force and effect.
(d) Successors and Assigns. This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and xxxx be for the benefit of the
Company, its successors, and its assigns.
(e) Survival. The provisions of this Agreement shall survive the termination
of my employment and the assignment of this Agreement by the Company to any successor in
interest or other assignee.
The parties have executed this Agreement on the respective dates set forth below:
| FINANCIAL ENGINES, INC. | EMPLOYEE, an Individual: | |||||||
| /s/ Xxxxx Xxxx | ||||||||
| Signature | Signature | |||||||
By:
|
Xxxxx Xxxx | |||||||
| Printed Name | ||||||||
Title: |
||||||||
Date:
|
Date: | 7/21/98 | ||||||
5
EXHIBIT A
LIST OF PRIOR INVENTIONS
AND ORIGINAL WORKS OF AUTHORSHIP
EXCLUDED FROM PARAGRAPH 3
AND ORIGINAL WORKS OF AUTHORSHIP
EXCLUDED FROM PARAGRAPH 3
| Identifying Number | ||||
| Title | Date | or Brief Description | ||
þ No inventions or improvements
o Additional Sheets Attached
Signature of Employee: /s/ Xxxxx Xxxx
Print Name of Employee:
Date: 7/21/98
EXHIBIT B
Section 2870 of the California Labor Code is as follows:
(a) Any provision in an employment agreement which provides that an employee shall
assign, or offer to assign, any of his or her rights in an invention to his or her employer
shall not
apply to an invention that the employee developed entirely on his or her own time without
using the
employer’s equipment, supplies, facilities, or trade secret information except for those
inventions
that either:
(1) Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of the
employer.
(2) Result from any work performed by the employee for the employer.
(b) To the extent a provision in an employment agreement purports to require an employee
to assign an invention otherwise excluded from being required to be assigned under subdivision
(a),
the provision is against the public policy of this state and is unenforceable.
EXHIBIT C
TERMINATION CERTIFICATION
This is to certify that I do not have in my possession, nor have I failed to return, any
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings,
blueprints, sketches, materials, equipment, other documents or property, or reproductions of any
aforementioned items belonging to Financial Engines, Inc., its subsidiaries, affiliates, successors
or assigns (together the “Company”).
I further certify that I have complied with all the terms of the Company’s Confidential
Information and Invention Assignment Agreement signed by me, including the reporting of any
inventions and original works of authorship (as defined therein), conceived or made by me (solely
or jointly with others) covered by that agreement.
I further agree that, in compliance with the Confidential Information and Invention Assignment
Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other
proprietary information relating to products, processes, know-how, designs, formulas, developmental
or experimental work, computer programs, data bases, other original works of authorship, customer
lists, business plans, financial information or other subject matter pertaining to any business of
the Company or any of its employees, clients, consultants or licensees.
I further agree that for twelve (12) months from this date, I will not hire any employees or
consultants of the Company and I will not solicit, induce, recruit or encourage any of the
Company’s employees or consultants to leave their employment, nor will I solicit any of the
Company’s licensors, customers or licensees to terminate any relationship with the Company.
Date: |
||||||
| (Employee’s Signature) | ||||||
| (Type/Print Employee’s Name) |
EXHIBIT D
JANUARY 12, 2009 LETTER AGREEMENT
January 12, 2009
Xxxxx Xxxx-Xxxx
<Address>
<Address>
<Address>
<Address>
Dear Olena:
On behalf of the Board of Directors of Financial Engines, Inc. (the “Company‘”), I am
happy to confirm the following compensation terms in consideration of your services as a director
of the Company, in place of any other oral or written agreements with respect to your compensation
as a member of the Board of Directors of the Company. Specifically, effective as of the date of
this letter, you will be compensated as follows for your services:
1. $30,000 annual retainer for your continuous service as a member of the Board of
Directors. This retainer covers all in-person and telephonic board and committee meetings. The
initial payment of such retainer shall be made to you as soon as practicable after the date of this
letter and for each subsequent year after which you have provided continuous services as a
member of the Board of Directors your annual retainer will be paid as soon as practicable after
the anniversary date of this letter.
2. In accordance with Company’s 1998 Stock Plan (the “Plan”), an initial grant of an option
to purchase 50,000 shares of Company common stock. This initial option will vest according to
the Company’s standard vesting schedule. The specific terms and conditions of this grant,
including exercise price and vesting conditions, are set forth in the Stock Option Agreement to
be entered into between you and the Company as soon as practicable after the date of this letter.
3. In addition, at the first meeting of the Board of Directors after each anniversary date of
this letter, assuming that you have provided continuous service as a member of the Board of
Directors during the preceding year, you will receive an automatic grant of an option to purchase
10,000 shares of Company common stock issued pursuant to the Plan. This annual option will
vest commencing on the corresponding anniversary date of this letter and otherwise according to
the Company’s standard vesting schedule. The specific terms and conditions of these grants,
including exercise price and vesting conditions, will be set forth in Stock Option Agreements to
be entered into between you and the Company.
Please let me know if you have any questions concerning the above. Again on behalf of the Board,
and myself, thank you for your many contributions to the Company.
Sincerely,
Xxxx X. Xxxxxx
Chairman of the Board
Chairman of the Board
