Contract
Exhibit 10.23
This Employment Agreement (this “Agreement”), made and entered as of the 30th day
of June, 2008, by and between Globecomm Systems Inc., a Delaware corporation with principal offices
located at 00 Xxxx Xxxxxx, Xxxxxxxxx, XX 00000 (the “Company”) and Xxxxx Xxxx (the “Executive”).
WITNESSETH
WHEREAS, the Company has a need for the Executive’s personal services in a senior executive
capacity;
WHEREAS, the Executive possesses the necessary strategic, financial, planning, operational and
managerial skills necessary to fulfill those needs;
WHEREAS, the Executive has been providing services to the Company as its Vice President since
November 8, 2003;
WHEREAS, the Company desires to promote the Executive to the position of Senior Vice President
and General Manager, Globecomm Network Services;
WHEREAS, the Company desires to maintain the continuity of its management team and provide the
Executive with incentive to remain with the Company; and
WHEREAS, the Executive and the Company desire to enter into a formal employment agreement to
fully recognize the contributions of Executive to the Company and to assure continuous harmonious
performance of the affairs of the Company.
NOW, THEREFORE, in consideration of the mutual promises, terms, provisions, and conditions
contained herein, the parties agree as follows:
| 1. | Position. |
The Company hereby agrees to promote and employ the Executive to serve in the role of its
Senior Vice President and General Manager, Globecomm Network Services, subject to the limitations
set forth herein. As such, the Executive shall be responsible for directing and managing the
Company’s network services business subject to the authority of the Chief Executive Officer of the
Company. The Executive accepts such employment upon the terms and conditions set forth herein, and
further agrees to perform to the best of his abilities the duties generally associated with his
position, as well as such other duties commensurate with his position as Senior Vice President and
General Manager, Globecomm Network Services, as may be reasonably assigned by the Company. The
Executive shall, at all times during the Term (as defined below), report directly to the Chief
Executive Officer of the Company. The Executive
shall perform his duties diligently and faithfully and shall devote his full business time and
attention to such duties.
| 2. | Term of Employment and Renewal. |
The term of Executive’s employment under this Agreement will commence on the date of this
Agreement (the “Effective Date”). Subject to the provisions of Section 10 of this Agreement, the
term of Executive’s employment hereunder shall be for an initial term of two (2) years from the
Effective Date (the “Initial Term”). The Initial Term of this Agreement shall be automatically
extended for successive one (1) year periods (each a “Renewal Period”) unless the Company or the
Executive gives written notice to the other at least ninety (90) days prior to the expiration of
the Initial Term, or a Renewal Period, of such party’s election not to extend this Agreement.
References herein to the “Term” shall mean the Initial Term as it may be so extended by one or more
Renewal Periods. The last day of the Term is the “Expiration Date.”
| 3. | Compensation and Benefits. |
(a) Salary. Commencing on the Effective Date, the Company agrees to pay the Executive
a base salary at an annual rate of two hundred sixty thousand Dollars ($260,000), payable in such
installments as is the policy of the Company (the “Salary”), but no less frequently than monthly.
Thereafter, the Company shall determine appropriate increases to Executive’s Salary but in no event
shall diminish the amount of Executive’s Salary below the initial rate, or below the increased
rates.
(b) Bonus. The Executive shall be eligible to receive annual bonuses at the
discretion of the Company and according to performance goals to be issued by the Company to the
Executive at the appropriate annual review cycle during the Term.
(c) Benefits. The Executive shall be entitled to participate in all employee benefit
plans which the Company provides or may establish from time to time for the benefit of its
employees, including, without limitation, group life, medical, surgical, dental and other health
insurance, short and long-term disability, deferred compensation, profit-sharing and similar plans.
The Executive shall also be entitled to paid vacation in accordance with the Company’s vacation
policy, which may be accrued to a maximum of forty (40) days.
(d) Expenses. The Company shall pay or reimburse the Executive for all reasonable
out-of-pocket expenses actually incurred by him during the Term in performing services hereunder,
provided that the Executive properly accounts for such expenses in accordance with the Company’s
policies.
| 4. | Confidentiality, Disclosure of Information. |
(a) The Executive recognizes and acknowledges that the Executive has had and will have access
to Confidential Information (as defined below) relating to the business or interests of the Company
or of persons with whom the Company may have business relationships. Except as permitted herein,
the Executive will not during the Term, or at any time thereafter, use, disclose or permit to be
known by any other person or entity, any Confidential Information of the Company (except as
required by applicable law or in connection with the performance of the
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Executive’s duties and responsibilities hereunder). The term “Confidential Information” means
information relating to the Company’s business affairs, proprietary technology, trade secrets,
patented processes, research and development data, know-how, market studies and forecasts,
competitive analyses, pricing policies, employee lists, employment agreements (other than this
Agreement), personnel policies, the substance of agreements with customers, suppliers and others,
marketing arrangements, customer lists, commercial arrangements, or any other information relating
to the Company’s business that is not generally known to the public or to actual or potential
competitors of the Company (other than through a breach of this Agreement). This obligation shall
continue until such Confidential Information becomes publicly available, other than pursuant to a
breach of this Section 4 by the Executive, regardless of whether the Executive continues to be
employed by the Company.
(b) It is further agreed and understood by and between the parties to this Agreement that all
“Company Materials,” which include, but are not limited to, computers, computer software, computer
disks, tapes, printouts, source, HTML and other code, flowcharts, schematics, designs, graphics,
drawings, photographs, charts, graphs, notebooks, customer lists, sound recordings, other tangible
or intangible manifestation of content, and all other documents whether printed, typewritten,
handwritten, electronic, or stored on computer disks, tapes, hard drives, or any other tangible
medium, as well as samples, prototypes, models, products and the like, shall be the exclusive
property of the Company and, upon termination of Executive’s employment with the Company, and/or
upon the request of the Company, all Company Materials, including copies thereof, as well as all
other Company property then in the Executive’s possession or control, shall be returned to and left
with the Company.
| 5. | Inventions Discovered by Executive. |
The Executive shall promptly disclose to the Company any invention, improvement, discovery,
process, formula, or method or other intellectual property, whether or not patentable or
copyrightable (collectively, “Inventions”), conceived or first reduced to practice by the
Executive, either alone or jointly with others, while performing services hereunder (or, if based
on any Confidential Information, at any time during or after the Term), (a) which pertain to any
line of business activity of the Company, whether then conducted or then being actively planned by
the Company, with which the Executive was or is involved, (b) which is developed using time,
material or facilities of the Company, whether or not during working hours or on the Company
premises, or (c) which directly relates to any of the Executive’s work during the Term, whether or
not during normal working hours. The Executive hereby assigns to the Company all of the Executive’s
right, title and interest in and to any such Inventions. During and after the Term, the Executive
shall execute any documents necessary to perfect the assignment of such Inventions to the Company
and to enable the Company to apply for, obtain and enforce patents, trademarks and copyrights in
any and all countries on such Inventions, including, without limitation, the execution of any
instruments and the giving of evidence and testimony, without further compensation beyond the
Executive’s agreed compensation during the course of the Executive’s employment. Without limiting
the foregoing, the Executive further acknowledges that all original works of authorship by the
Executive, whether created alone or jointly with others, related to the Executive’s employment with
the Company and which are protectable by copyright, are “works made for hire” within the meaning of
the United States Copyright Act, 17 U.S.C. (Section) 101, as amended, and the copyright of which
shall be owned solely, completely
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and exclusively by the Company. If any Invention is considered to be work not included in the
categories of work covered by the United States Copyright Act, 17 U.S.C. (Section) 101, as amended,
such work is hereby assigned or transferred completely and exclusively to the Company. The
Executive hereby irrevocably designates counsel to the Company as the Executive’s agent and
attorney-in-fact to do all lawful acts necessary to apply for and obtain patents and copyrights and
to enforce the Company’s rights under this Section. This Section 5 shall survive the termination of
this Agreement. Any assignment of copyright hereunder includes all rights of paternity, integrity,
disclosure and withdrawal and any other rights that may be known as or referred to as “moral
rights” (collectively “Moral Rights”). To the extent such Moral Rights cannot be assigned under
applicable law and to the extent the following is allowed by the laws in the various countries
where Moral Rights exist, the Executive hereby waives such Moral Rights and consents to any action
of the Company that would violate such Moral Rights in the absence of such consent. The Executive
agrees to confirm any such waivers and consents from time to time as requested by the Company.
| 6. | Non-Competition and Non-Solicitation. |
The Executive acknowledges that the Company has invested substantial time, money and resources
in the development and retention of its Inventions, Confidential Information (including trade
secrets), customers, accounts and business partners, and further acknowledges that during the
course of the Executive’s employment with the Company the Executive has had and will have access to
the Company’s Inventions and Confidential Information (including trade secrets), and will be
introduced to existing and prospective customers, accounts and business partners of the Company.
The Executive acknowledges and agrees that any and all “goodwill” associated with any existing or
prospective customer, account or business partner belongs exclusively to the Company, including,
but not limited to, any goodwill created as a result of direct or indirect contacts or
relationships between the Executive and any existing or prospective customers, accounts or business
partners. Additionally, the parties acknowledge and agree that Executive possesses skills that are
special, unique or extraordinary and that the value of the Company depends upon his use of such
skills on its behalf.
In recognition of this, the Executive covenants and agrees that:
(a) During the Term, and for a period of one (1) year thereafter, the Executive may not,
without the prior written consent of the Company’s board of directors (the “Board”), (whether as an
employee, agent, servant, owner, partner, consultant, independent contractor, representative,
stockholder or in any other capacity whatsoever) participate in any business that offers products
or services competitive in any way to those offered by the Company or that were under active
development by the Company during the Term, provided that nothing herein shall prohibit the
Executive from owning securities of corporations which are listed on a national securities exchange
or traded in the national over-the-counter market in an amount which shall not exceed 3% of the
outstanding shares of an such corporation.
(b) During the Term, and for a period of one (1) year thereafter, the Executive may not
entice, solicit or encourage any Company employee to leave the employ of the Company or any
independent contractor to sever its engagement with the Company, absent prior written consent to do
so from the Board.
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(c) During the Term, and for a period of one (1) year thereafter, the Executive may not,
directly or indirectly, entice, solicit or encourage any customer, prospective customer, vendor,
strategic partner or business associate of the Company to cease doing business with the Company,
reduce its relationship with the Company or refrain from establishing or expanding a relationship
with the Company.
| 7. | Non-Disparagement. |
The Executive hereby agrees that during the Term, and at all times thereafter, the Executive
will not make any statement that is disparaging about the Company, any of its officers, directors,
or stockholders, including, but not limited to, any statement that disparages the products,
services, finances, financial condition, capabilities or other aspect of the business of the
Company. The Executive further agrees that during the same period the Executive will not engage in
any conduct that is intended to inflict harm upon the professional or personal reputation of the
Company or any of its officers, directors, stockholders or employees.
| 8. | Provisions Necessary and Reasonable. |
(a) The Executive agrees that (i) the provisions of Sections 4, 5, 6 and 7 of this Agreement
are necessary and reasonable to protect the Company’s Confidential Information, Inventions, and
goodwill; (ii) the specific temporal, geographic and substantive provisions set forth in Section 6
of this Agreement are reasonable and necessary to protect the Company’s business interests in part
because the Company’s business is international in scope; and (iii) in the event of any breach of
any of the covenants set forth herein, the Company would suffer substantial irreparable harm and
would not have an adequate remedy at law for such breach. In recognition of the foregoing, the
Executive agrees that in the event of a breach or threatened breach of any of these covenants, in
addition to such other remedies as the Company may have at law, without posting any bond or
security, the Company shall be entitled to seek and obtain equitable relief, in the form of
specific performance, and/or temporary, preliminary or permanent injunctive relief, or any other
equitable remedy which then may be available. The seeking of such injunction or order shall not
affect the Company’s right to seek and obtain damages or other equitable relief on account of any
such actual or threatened breach.
(b) If any of the covenants contained in Sections 4, 5, 6 and 7 hereof, or any part thereof,
are hereafter construed 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 portions.
(c) If any of the covenants contained in Sections 4, 5, 6 and 7 hereof, or any part thereof,
are held to be unenforceable by a court of competent jurisdiction because of the temporal or
geographic scope of such provision or the area covered thereby, the parties agree that the court
making such determination shall have the power to reduce the duration and/or geographic area of
such provision and, in its reduced form, such provision shall be enforceable.
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| 9. | Representations Regarding Prior Work and Legal Obligations. |
(a) The Executive represents that the Executive has no agreement or other legal obligation
with any prior employer, or any other person or entity, that restricts the Executive’s ability to
accept employment with, or to perform any function for, the Company.
(b) The Executive has been advised by the Company that at no time should the Executive divulge
to or use for the benefit of the Company any trade secret or confidential or proprietary
information of any previous employer. The Executive expressly acknowledges that the Executive has
not divulged or used any such information for the benefit of the Company.
(c) The Executive acknowledges that the Executive has not and will not misappropriate any
Invention that the Executive played any part in creating while working for any former employer.
(d) The Executive acknowledges that the Company is basing important business decisions on
these representations, and affirms that all of the statements included herein are true.
| 10. | Termination and Severance. |
Notwithstanding the provisions of Section 2 of this Agreement, the Executive’s employment
hereunder may terminate under the following circumstances:
(a) Termination by the Company for Cause. The Company may terminate this Agreement for
Cause at any time, upon written notice to the Executive setting forth in reasonable detail the
nature of such Cause. For purposes of this Agreement, Cause is defined as (i) the Executive’s
willful and material breach of the terms of this Agreement; (ii) the Executive’s commission of any
felony or any crime involving moral turpitude; (iii) gross negligence or willful misconduct by the
Executive in connection with his position hereunder; or (iv) the Executive’s willful refusal to
perform his duties hereunder. Upon the termination for Cause of Executive’s employment, the Company
shall have no further obligation or liability to the Executive other than for salary earned under
this Agreement prior to the date of termination, and any accrued but unused vacation.
(b) Termination by the Company Without Cause or Resignation by the Executive for Good
Reason.
(i) The Executive’s employment hereunder may be terminated without Cause by the Company
upon written notice to the Executive. The Executive may also terminate his employment
hereunder for “Good Reason” upon one (1) month’s written notice to the Company within
thirty (30) days of the occurrence of any of the following events (A) a material breach of
this Agreement by the Company, which shall be interpreted to include, without limitation, a
failure to pay the Executive his salary or bonus or a failure to provide the Executive his
benefits; (B) a material reduction in the Executive’s duties or responsibilities; (C) a
change in the Executive’s reporting relationship so that he no longer reports directly to
the Chief Executive Officer; or (D) a relocation of the Executive’s worksite to a location
seventy five (75) miles or more from its current location.
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(ii) Subject to Section 11, if the Company terminates the Executive’s employment without
Cause, or the Executive terminates his employment for Good Reason (A) the Company shall
continue to pay the Executive the Salary for a two (2) year severance period commencing
upon the effective date of the termination (the “Severance Period”); (B) the Company shall
pay for the costs of, or reimburse the Executive for the costs he incurs in, continuing the
Executive’s and his eligible dependents’ health insurance pursuant to COBRA for as long as
the Executive (and/or his eligible dependents, as the case may be) are eligible for COBRA
during the Severance Period, and then shall pay the cost of medical and dental coverage for
the Executive comparable to that provided pursuant to COBRA, up to a maximum of $2000 per
month, during the balance of the Severance Period; (C) during the Severance Period, the
Company shall pay the cost of conversion of group term life coverage to an individual
policy for the Executive; (D) during the Severance Period, the Company shall pay to the
Executive a monthly lump sum cash payment equal to one-twelfth of the annual automobile
allowance he received at the time of such termination; and (E) during the Severance Period,
the Company shall pay to the Executive a monthly lump sum cash payment equal to one-twelfth
of the non-elective deferral employer contribution made for his benefit under the Company’s
401(k) plan for the last fiscal year of the Company prior to the termination of Executive’s
employment. As a condition of receiving severance payments and benefits pursuant to this
Agreement, the Executive shall execute and deliver to the Company prior to his receipt of
such benefits a general release substantially in the form attached hereto as Exhibit A.
(c) Resignation by the Executive without Good Reason. The Executive may resign his
employment hereunder without Good Reason upon one (1) month’s written notice to the Company. In the
event of termination by the Executive pursuant to this subsection 10(c), the Company may elect to
pay the Executive during the notice period (or for any remaining portion of that period) the Salary
and benefits at the rate of compensation the Executive was receiving immediately before such notice
of termination was tendered in lieu of actual notice.
(d) Death. In the event of the Executive’s death during the Term of this Agreement,
the Executive’s employment hereunder shall immediately and automatically terminate, and the Company
shall have no further obligation or duty to the Executive or his estate or beneficiaries other than
for the Salary earned under this Agreement to the date of termination and any payments or benefits
due under Company policies or benefit plans.
(e) Disability. The Company may terminate the Executive’s employment hereunder, upon
written notice to the Executive, in the event that the Executive becomes disabled during the Term
through any condition of either a physical or psychological nature and, as a result, is, with or
without reasonable accommodation, unable to perform the essential functions of the services
contemplated hereunder for (a) a period of one hundred and twenty (120) consecutive days, or (b)
for shorter periods aggregating one hundred twenty (120) days during any twelve (12) month period
during the Term. Any such termination shall become effective upon mailing or hand delivery of
notice that the Company has elected its right to terminate under this subsection 10(e), and the
Company shall have no further obligation or duty to the Executive other than for salary earned
under this Agreement prior to the date of termination and any payments or benefits previously
vested and due under Company policies or benefit plans.
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(f) Change in Control. Subject to Section 11, if the Executive resigns with Good
Reason within one (1) year after a Change in Control (as defined below) he will be entitled to the
payments and benefits described in Section 10(b)(ii) above (the “Severance Payments”) provided
that, if the grounds for the termination for Good Reason are those specified in Section 10(b)(i)(B)
and/or (C), and if the Company gives the Executive written notice (the “Continuation Notice”), at
any time up to ten (10) days after it receives the Executive’s written resignation notice, that it
wishes the Executive to continue his employment until a date not later than one (1) year after the
Change in Control (the “Employment Continuation Date”), the Executive shall not be entitled to the
Severance Payments until and unless he remains employed by the Company through the Employment
Continuation Date. Nothing in this subsection 10(g) shall obligate the Company to provide the
Executive with the Severance Payments upon a termination for Cause, death or disability. If the
Executive does not provide the Company notice of resignation or non-renewal at any time during the
year following a Change in Control and remains employed by the Company through the first
anniversary of the Change in Control, as defined below, the Executive shall be paid a one-time
bonus payment of 200% of his Salary (the “Special Bonus”). The Special Bonus shall be in addition
to, and not in lieu of, any Severance Payments to which Executive may otherwise become entitled
under this section 10 in connection with the subsequent termination of his employment. As used
herein, a “Change in Control” shall mean a change of control of the Company of a nature that would
be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in
response to any similar item on any similar schedule or form) promulgated under the Securities
Exchange Act of 1934, as amended (the “1934 Act”) whether or not the Company is then subject to
such reporting requirement; provided, however, that, without limitation, such a Change in Control
shall be deemed to have occurred if: (x) any person or group (as such terms are used in connection
with Sections 13(d) and 14(d) of the 0000 Xxx) becomes the “beneficial owner” (as defined in Rule
13d-3 and 13d-5 under the 1934 Act), directly or indirectly, of securities of the Company
representing 35% or more of the combined voting power of the Company’s then outstanding securities;
(y) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a
proxy contest, as a consequence of which members of the Board in office immediately prior to such
transaction or event constitute less than a majority of the Board thereafter; and (z) during any
period of twenty-four (24) consecutive months, individuals who at the beginning of such period
constituted the Board (including for this purpose any new director whose election or nomination for
election by the Company’s stockholders was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such period) cease for any
reason to constitute at least a majority of the Board. Notwithstanding the foregoing provisions of
this subsection 10(g), a “Change in Control” will not be deemed to have occurred solely because of
the acquisition of securities of the Company (or any reporting requirement under the 1934 Act
relating thereto) by an employee benefit plan maintained by the Company for its employees. As used
herein, the “Company” may include the Company’s successors subsequent to a Change in Control.
11. Benefit Limitation.
(a) Should any payments or benefits become payable hereunder in connection with a Change in
Control, then the aggregate Present Value, measured as of the Change in Control, of any Severance
Payments to which the Executive becomes entitled under section 10(b)(ii) of this Agreement (namely,
the salary continuation payments, the continued health care coverage, the
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life insurance coverage, the equivalent automobile and professional service payments and the
equivalent 401(k) employer contribution payments) and, if applicable, any portion of the Special
Bonus under section 10(g) which is deemed to constitute a parachute payment under Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”) shall in no event exceed in amount the
greater of the following dollar amounts (the “Benefit Limit”):
(i) 2.99 times the Executive’s Average Compensation, less the Present Value, measured as of
the Change in Control, of all Other Parachute Payments (as defined below) to which the
Executive is entitled, or
(ii) the amount that yields the Executive the greatest after-tax amount of benefits under
this Agreement after taking into account any excise tax imposed under Code Section 4999 on
his payments and benefits under section 10 of this Agreement and any Other Parachute
Payments,
The portion of any option that automatically vests on an accelerated basis upon a Change in
Control pursuant to the terms of the agreement evidencing that option that is deemed to be a
parachute payment under Code Section 280G (the “Option Parachute Payment”) shall also be subject to
the Benefit Limit. The Option Parachute Payment shall be calculated in accordance with the
valuation provisions established under Code Section 280G and the applicable Treasury Regulations
and shall include an appropriate dollar adjustment to reflect the lapse of the Executive’s
obligation to remain in the Company’s employ as a condition to the vesting of the accelerated
installment. In no event, however, shall the parachute payment attributable to any portion of such
option exceed the excess of the fair market value of the accelerated option shares at the time of
acceleration over the option exercise price of such shares.
For purposes of applying the Benefit Limit, the value of the Executive’s non-competition
covenant under Section 6 of this Agreement shall be determined by an independent appraisal by a
nationally recognized accounting firm acceptable to both the Executive and the Company, and a
portion of his Severance Payments shall, to the extent of such appraised value, be specifically
allocated as reasonable compensation for such covenant.
“Average Compensation” means the average of the Executive’s W-2 wages from the Company for the
five (5) calendar years (or such fewer number of calendar years of employment with the Company)
completed immediately prior to the calendar year in which the Change in Control occurs.
Any W-2 wages for a partial year of employment will be annualized, in accordance with the
frequency which such wages are paid during such partial year, before inclusion in the Executive’s
Average Compensation.
“Other Parachute Payments” means all payments in the nature of compensation that are made to
the Executive, other than the Severance Payments described in section 10(b)(ii) of this Agreement
or any portion of the Special Bonus under section 10(g) deemed to constitute a parachute payment,
payable in connection with a Change in Control and which accordingly qualify as parachute payments
with the meaning of Code Section 280G. Other Parachute Payments shall include, without limitation,
the Present Value of any Option Parachute Payment.
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“Present Value” means the value, determined as of the date of the Change in Control, of any
payment in the nature of compensation to which the Executive becomes entitled in connection with
the Change in Control. The Present Value of each such payment shall be determined in accordance
with the provisions of Code Section 280G(d)(4), utilizing a discount rate equal to 120% of the
applicable Federal Rate in effect at the time of such determination, compounded semi-annually to
the effective date of the Change in Control.
(b) In the event there is any disagreement between the Executive and the Company as to whether
one or more payments to which Executive becomes entitled in connection with the Change in Control
constitute parachute payments within the meaning of Code Section 280G, such dispute shall be
resolved by the nationally recognized firm of certified public accountants used by the Company
prior to the Change in Control (the “Accounting Firm”); provided, that if such firm declines to
serve, the “Accounting Firm” shall be a nationally recognized firm of certified public accountants
selected by mutual agreement of the Company and the Executive.
(c) Once the requisite determinations have been made, then to the extent the aggregate Present
Value, measured as of the Change in Control, of all parachute payments attributable to the
Severance Payments under this Agreement and otherwise, including without limitation the Option
Parachute Payment, exceeds the Benefit Limit, the following reductions shall be made to the
payments and benefits under Section 10 of this Agreement, to the extent necessary to assure that
such Benefit Limit is not exceeded: first, the Executive’s salary continuation payments described
in Section 10(b)(ii)(A) and then, if applicable, his Special Bonus under section 10(g), shall be
reduced; and then the period of the Company’s Company-paid health-care coverage described in
Section 10(b)(ii)(B) shall be shortened. To the extent the Benefit Limit is still exceeded
following such reductions, then a portion of the aggregate amount of payments described in Sections
10(b)(ii)(C), (D) and (E) shall be reduced to the extent necessary to eliminate such excess and,
finally, the Option Parachute Payment shall be reduced.
| 12. | Choice of Law. |
The Executive acknowledges that a substantial portion of the Company’s business is based out
of and directed from the State of New York. The Executive also acknowledges that during the course
of the Executive’s employment with the Company the Executive will have substantial contacts with
New York.
The validity, interpretation and performance of this Agreement shall be governed by, and
construed in accordance with, the internal law of New York, without giving effect to conflict of
law principles. Both parties agree that the exclusive venue for any action, demand, claim or
counterclaim relating to the terms and provisions of Sections 4, 5, 6 and 7 of this Agreement, or
to their breach, shall be in the state or federal courts located in Suffolk County, New York and
that such courts shall have personal jurisdiction over the parties to this Agreement.
| 13. | Miscellaneous. |
(a) Assignment. The Executive acknowledges and agrees that the rights and obligations
of the Company under this Agreement may be assigned by the Company to any successors in interest.
In any event, however, this Agreement shall be binding upon and inure to
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the benefit of any successors in interest to the Company. The Executive further acknowledges
and agrees that this Agreement is personal to the Executive and that the Executive may not assign
any rights or obligations hereunder.
(b) Withholding. All salary, bonus and severance payments required to be made by the
Company to the Executive under this Agreement shall be subject to withholding taxes, social
security and other payroll deductions in accordance with the Company’s policies applicable to
employees of the Company at the Executive’s level.
(c) Entire Agreement. Except as specifically set forth herein, this Agreement sets
forth the entire agreement between the parties and supersedes any prior communications, agreements
and understandings, written or oral, with respect to the terms and conditions of the Executive’s
employment.
(d) Amendments. Any attempted modification of this Agreement will not be effective
unless signed by an officer of the Company and the Executive.
(e) Waiver of Breach. The Executive understands that a breach of any provision of
this Agreement may only be waived by an officer of the Company. The waiver by the Company of a
breach of any provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach.
(f) Severability. If any provision of this Agreement should, for any reason, be held
invalid or unenforceable in any respect by a court of competent jurisdiction, then the remainder of
this Agreement, and the application of such provision in circumstances other than those as to which
it is so declared invalid or unenforceable, shall not be affected thereby, and each such provision
of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
(g) Notices. Any notices, requests, demands and other communications provided for by
this Agreement shall be in writing and shall be effective when delivered by private messenger,
private overnight mail service, or facsimile as follows (or to such other address as either party
shall designate by notice in writing to the other in accordance herewith):
If to the Company:
Globecomm Systems Inc.
00 Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
Attn: Chief Executive Officer
Globecomm Systems Inc.
00 Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
Attn: Chief Executive Officer
With a copy to (which shall not constitute notice):
Xxxxxx Xxxxx Xxxxxxxx & Xxxxxxx LLP
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxxx X. Xxxxxx, Esq.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxxx X. Xxxxxx, Esq.
If to Executive:
Xxxxx Xxxx
Xxxxx Xxxx
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00 Xxxxx Xxxx Xxxx
Xxxxx Xxxxx, XX 00000
Xxxxx Xxxxx, XX 00000
(h) Survival. The Executive and the Company agree that certain provisions of this
Agreement shall survive the expiration or termination of this Agreement and the termination of the
Executive’s employment with the Company. Such provisions shall be limited to those within this
Agreement which, by their express and implied terms, obligate either party to perform beyond the
termination of the Executive’s employment or termination of this Agreement.
(i) Disclosure and Confidentiality. The Executive agrees to provide, and agrees that
the Company similarly may provide in its discretion, a copy of the covenants contained in this
Agreement to any business or enterprise which the Company may directly or indirectly own, manage,
operate, finance, join, control or in which the Company participates in the ownership, management,
operation, financing or control, or with which the Company may be connected or may become connected
as an officer, director, executive, partner, principal, agent, representative, consultant or
otherwise. The Executive also agrees that the Company may disclose a copy of this Agreement if
legally required to do so, and in connection with a partnering transaction or financing, assuming
that an appropriate confidentiality agreement is in place. The Executive further agrees not to
disclose the existence or terms of this Agreement to any person other than the Executive’s
immediate family and legal, financial or accounting professional.
(j) Arbitration of Disputes. Any controversy or claim arising out of this Agreement
or any aspect of the Executive’s relationship with the Company including the cessation thereof
(other than disputes with respect to alleged violations of the covenants contained in Sections 4,
5, 6 or 7 hereof, and the Company’s pursuit of the remedies described in Section 8 hereof in
connection therewith) shall be resolved by arbitration in accordance with the then existing
Employment Dispute Resolution Rules of the American Arbitration Association, in New York, New York,
and judgment upon the award rendered may be entered in any court having jurisdiction thereof.
Except as awarded by the arbitrator pursuant to applicable statutory or legal standards, the
parties shall split equally the costs of arbitration and each party shall pay its own attorneys’
fees. The parties agree that the award of the arbitrator shall be final and binding.
(k) Rights of Other Individuals. This Agreement confers rights solely on the
Executive and the Company. This Agreement is not a benefit plan and confers no rights on any
individual or entity other than the undersigned.
(l) Headings. The parties acknowledge that the headings in this Agreement are for
convenience of reference only and shall not control or affect the meaning or construction of this
Agreement.
(m) Advice of Counsel. The Executive and the Company hereby acknowledge that each
party has had adequate opportunity to review this Agreement, to obtain the advice of counsel with
respect to this Agreement, and to reflect upon and consider the terms and conditions of this
Agreement. The parties further acknowledge that each party fully understands the terms of this
Agreement and has voluntarily executed this Agreement.
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IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the day and year
set forth below.
EXECUTIVE
|
GLOBECOMM SYSTEMS INC. | |||
/s/ XXXXX XXXX
|
/s/ XXXXX X. XXXXXXXXX | |||
| Title: Chief Executive Officer |
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EXHIBIT A
SEPARATION AGREEMENT
AND GENERAL RELEASE
AND GENERAL RELEASE
This Separation Agreement and General Release (this “Agreement”) is made and entered into this
day of , , by and between Globecomm Systems Inc. (hereinafter the “Company” or
“Employer”) and Xxx Xxxxx (“Employee”) (hereinafter collectively referred to as the “Parties”), and
is made and entered into with reference to the following facts.
RECITALS
WHEREAS, Employee was hired by the Company on or about , as a ; and
WHEREAS, the Company and Employee have agreed to terminate their employment relationship
effective , ; and
WHEREAS, the Parties each desire to resolve any potential disputes which exist or may exist
arising out of Employee’s employment with the Company and/or the termination thereof.
NOW THEREFORE, in consideration of the covenants and promises contained herein, the Parties
hereto agree as follows:
AGREEMENT
1. AGREEMENT BY THE COMPANY. In exchange for Employee’s agreement to be bound by the terms of
this entire Agreement, including but not limited to the Release of Claims in paragraph 3, the
Company agrees to provide Employee with a lump-sum payment in the amount of dollars
($ ), less statutory deductions and withholdings, which amount represents (_)
weeks’/months’/years’ salary at Employee’s rate of pay as of the Termination Date, to be paid
within ten (10) days of the Company’s receipt of this Agreement, fully executed by Employee.
Employee acknowledges that, absent this Agreement, he has no legal, contractual or other
entitlement to the consideration set forth in this paragraph and that the amount set forth in this
paragraph constitute valid and sufficient consideration for Employee’s release of claims and other
obligations set forth herein.
2. RELEASE OF CLAIMS. Employee hereby expressly waives, releases, acquits and forever
discharges the Company and its divisions, subsidiaries, affiliates, parents, related entities,
partners, officers, directors, stockholders, investors, executives, managers, employees, agents,
attorneys, representatives, successors and assigns (hereinafter collectively referred to as
“Releasees”), from any and all claims, demands, and causes of action which Employee has or claims
to have, whether known or unknown, of whatever nature, which exist or may exist on Employee’s
behalf from the beginning of time up to and including the date of this Agreement. As used in this
paragraph, “claims,” “demands,” and “causes of action” include, but are not
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limited to, claims based on contract, whether express or implied, fraud, stock fraud, defamation,
wrongful termination, estoppel, equity, tort, retaliation, intellectual property, personal injury,
spoliation of evidence, emotional distress, public policy, wage and hour law, statute or common
law, claims for severance pay, claims related to stock options and/or fringe benefits, claims for
attorneys’ fees, vacation pay, debts, accounts, compensatory damages, punitive or exemplary
damages, liquidated damages, and any and all claims arising under any federal, state, or local
statute, law, or ordinance prohibiting discrimination on account of race, color, sex, age,
religion, sexual orientation, disability or national origin, including but not limited to, the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, the
Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income
Security Act, the New York State Labor Law, the New York State Human Rights Law, New York City
Human Rights Law or the New York State Executive Law.
3. ACCEPTANCE OF AGREEMENT/REVOCATION. This Agreement was received by Employee on ___, ___.
Employee may accept this Agreement by returning a signed original to the Company. This Agreement
shall be withdrawn if not accepted in the above manner on or before ___.
4. CONFIDENTIALITY. Employee understands and agrees that this Agreement, and the matters
discussed in negotiating its terms, are entirely confidential. It is therefore expressly
understood and agreed that Employee will not reveal, discuss, publish or in any way communicate any
of the terms, amount or fact of this Agreement to any person, organization or other entity, with
the exception of his/her immediate family members and professional representatives, unless required
by subpoena or court order. Employee further agrees that s/he will not, at any time in the future,
make any statements to any third parties that disparage any of the Releasees personally or
professionally.
5. NEW YORK LAW APPLIES. This Agreement, in all respects, shall be interpreted, enforced and
governed by and under the laws of the State of NEW YORK. Any and all actions relating to this
Agreement shall be filed and maintained in the federal and/or state courts located in the State AND
COUNTY OF SUFFOLK, and the parties consent to the jurisdiction of such courts. In any action
arising out of this Agreement, or involving claims barred by this Agreement, the prevailing party
shall be entitled to recover all costs of suit, including reasonable attorneys’ fees.
6. VOLUNTARY AGREEMENT. EMPLOYEE UNDERSTANDS AND AGREES THAT HE MAY BE WAIVING SIGNIFICANT
LEGAL RIGHTS BY SIGNING THIS AGREEMENT, AND REPRESENTS THAT HE HAS ENTERED INTO THIS AGREEMENT
KNOWINGLY AND VOLUNTARILY, WITH A FULL UNDERSTANDING OF AND IN AGREEMENT WITH ALL OF ITS TERMS.
7. Employee acknowledges that he has been, and hereby is, advised to consult with an attorney
prior to the execution of this Agreement, and that he consulted with (the
“Attorney”). Employee acknowledges that he has been afforded an opportunity to take at least
twenty-one (21) days to consider this Agreement, and that both he and the Attorney have had an
adequate opportunity to review this Agreement before its execution. The parties understand and
acknowledge that Employee will have a period of seven
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(7) calendar days following her execution of this Agreement in which to revoke his consent.
Such revocation must be in writing and received prior to the expiration of the seven-day revocation
period by:
[REMAINDER OF PAGE LEFT INTENTIONALLY BANK]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates provided
below.
| GLOBECOMM SYSTEMS INC. | |||||||||||
| By: | |||||||||||
|
Dated:
|
, | Its: | |||||||||
| XXXXX XXXX | |||||||||||
Dated: |
, | ||||||||||
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