EXHIBIT 10.21
EXECUTIVE EMPLOYMENT AGREEMENT
This Executive Employment Agreement (the "Agreement") is entered into by
and between Xxxxxx Interactive Systems, Inc. (the "Company"), a Delaware
corporation, and Xxxxx X. Xxxxxxxxxx ("Executive"), effective as of September
30,1999 ("Effective Date").
WITNESSETH
WHEREAS, the Company desires to employ Executive and to assure itself of
the continued services of Executive, and Executive desires to be employed by the
Company, under the terms and conditions herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
1. EMPLOYMENT BY THE COMPANY. The Company hereby employs Executive to
render full-time services to the Company as its President and Chief Executive
Officer. Executive shall have responsibilities, duties and authorities that are
customarily associated with such position, and such other duties that are
assigned by the Company's Board of Directors (the "Board"). Executive will be
nominated for election to the Board at its first regular meeting following the
Effective Date. Executive's employment by the Company shall commence on the
Effective Date.
2. COMPENSATION. The Company agrees to compensate Executive as follows:
a. Base Salary - The Company shall pay Executive a base salary at the
initial rate of $375,000 per year. Such base salary shall be paid
pursuant to the Company's ordinary business practice, and shall be
subject to ordinary payroll deductions and tax withholdings.
Subsequent changes to the base salary rate, if any, shall be
determined by the Board from time to time.
b. Incentive Bonus Plan - Executive will be eligible for an incentive
bonus. Target bonus will be 60% of base salary for on-plan
performance. Results above plan will have accelerated payout with no
cap. Bonus amounts will be set annually by Compensation Committee of
the Board and paid annually in cash. For the first year of the
executive's employment, the incentive bonus will be guaranteed to be a
minimum of 30% of base salary. The specific terms of the incentive
bonus (e.g., performance targets, payment terms, etc.) will be agreed
upon by the Executive and the Board and will be documented separately.
Changes to the incentive bonus plan for subsequent years will be
determined by the Board.
c. Sign-on, Temporary Living and Relocation Bonus - Xxxxxx
Interactive will provide the Executive a one-time "signing bonus" of
$200,000 which can be drawn down by the Executive in total or in
progress payments anytime
1
beginning 30 days after the Effective Date. This amount represents
payment in full for all relocation, temporary living, related
commuting and any similar expenses. This amount can be structured in a
flexible and tax-advantaged manner if possible at Executive's option,
but will not be "grossed up" or increased should Executive's actual
expenses exceed this amount. Payments will be subject to withholding
for payroll and income taxes to the extent required by law.
d. Stock Options - The Executive will be granted stock options to
purchase an aggregate total of 750,000 shares of the Company's common
stock at an exercise price equal to the closing market price on the
last trading day prior to the date this grant is approved by the
Board. Options will vest over four years at the rate of 25% at the end
of each year. Options will have a ten-year life. The terms of such
options shall be as set forth in the Company's stock option plans and
standard form stock option agreement, which agreement shall be
modified as necessary to reflect the foregoing terms.
e. Other Benefits - The Company will provide Executive with health
insurance and other benefits consistent with Company policy for senior
executives.
3. OUTSIDE ACTIVITIES. Executive will be able to serve on up to two
Board of Director positions provided these activities do not conflict with or
diminish Executive's ability to conduct his duties as the Company's Chief
Executive Officer. Any renewal of these Board positions, any new Board positions
or any other professional activities unrelated to the Company will require the
prior approval of the Xxxxxx Interactive Board of Directors.
4. PROPRIETARY AND CONFIDENTIAL INFORMATION OBLIGATIONS. Executive
agrees to execute the Company's standard Proprietary Information Agreement, a
copy of which is attached as Exhibit A. Executive further acknowledges that
these obligations continue upon termination of Executive's employment with the
Company.
5. EMPLOYEE HANDBOOK. By signing this Agreement, Executive acknowledges
that he has received and read the Company's employee handbook. Executive agrees
to abide by all Company policies and procedures.
6. NONSOLICITATION. While employed by the Company and for two (2) years
thereafter, Executive agrees that in order to protect the Company's confidential
and proprietary information from unauthorized use, Executive will not, either
directly or through others, solicit or attempt to solicit: any employee,
consultant or independent contractor providing services to the Company within
the prior six (6) months at the time of the Executive's termination of
employment, to terminate his or her relationship with the Company in order to
become an employee, consultant or independent contractor to or for any other
person or business entity; or the business of the sort provided by the Company
to any customer, vendor or distributor of the Company which, at the time of
termination or six (6) months immediately prior thereto, was listed on the
Company's customer, vendor or distributor list.
7. TERMINATION OF EMPLOYMENT. Executive and the Company each acknowledge
that either party has the right to terminate Executive's employment with the
Company at any time for any reason whatsoever, with or without advance notice.
This at-will employment relationship cannot be changed except in writing signed
by a duly authorized officer of the Company.
2
7.1 Company-Initiated Termination.
(a) If the Executive's employment terminates due to an Involuntary
Termination Without Cause Executive shall be entitled to receive the following
benefits, as severance: (i) a payment equal to Executive's Base Salary for
twelve (12) months plus Executive's target bonus for the year in which
termination occurs, (ii) COBRA Continuation Benefits; (iii) the portion of
Executive's stock options that would have vested on or before the date twelve
(12) months from the occurrence of the Covered Termination shall accelerate and
immediately become vested and exercisable. (iv) the period during which
Executive may exercise any and all stock options deemed vested as of the date of
Executive's termination shall be extended such that Executive will have twelve
(12) months after the date of such termination to exercise such options
(provided that any such extension shall not extend the maximum term during which
any such option may be exercised beyond ten (10) years).
(b) Notwithstanding section 7.1 (a) above, if the Company (i) merges
or combines with any other company or entity in a manner which produces a change
of control; (ii) sells all or substantially all its assets to any other company
or entity; (iii) has forty percent (40%) or more of its stock acquired by a
person and/or affiliates of such person, the Executive shall receive: (i)
continued payment of base salary for twelve (12) months following Executive's
date of termination for any reason; (ii) continued health care benefits for
twelve (12) months following Executive's termination of employment under the
federal COBRA law; (iii) accelerated vesting of any and all shares, pursuant to
any and all stock options granted to Executive; and (iv) twelve (12) months
after the date of Executive's termination of employment for any reason to
exercise any and all vested shares subject to any and all stock options granted
to Executive (provided that any such extension shall not extend the maximum term
during which any such option may be exercised beyond ten (10) years). For the
purposes of this agreement, "change of control" means a merger or consolidation
in which the Company is not the surviving corporation, or in which the
shareholders of the Company immediately prior to the merger or consolidation do
not hold a majority of the shares of the resulting corporation.
(c) In the event Executive's employment is terminated at any time with
Cause, all of Executive's compensation and benefits will cease immediately, and
Executive shall not be entitled to any severance benefits.
(d) Except as expressly provided herein, Executive will not be
entitled to any other compensation, severance, pay-in-lieu of notice or any
other such compensation. This severance provision does not affect the "at will"
nature of Executive's employment.
(e) Any severance payments to Executive with respect to a Company
Termination or a Covered Termination shall be subject to applicable withholding
for appropriate federal, state, local (and foreign, if applicable) income and
employment taxes, and shall be payable at such time or times as the Company may
elect; provided that Executive shall not receive such severance payments at a
rate slower than the Company's regularly scheduled payment dates for payroll and
bonus, as applicable. If Executive is indebted to the Company at his date of
termination, the Company reserves the right to offset any severance payment
under this Agreement by the amount of such indebtedness. In no event shall
payment of any such severance payment be made prior to Executive's date of
termination or in the absence of an effective release pursuant to Section 7.6.
3
7.2 Executive-Initiated Termination. Executive may voluntarily terminate
his employment with the Company at any time by giving the Board thirty (30) days
written notice. In the event Executive voluntarily terminates his employment
with the Company, all of Executive's compensation and benefits will cease as of
the termination date. Executive acknowledges that he will not receive any
severance pay or benefits upon such voluntary termination. Termination of
Executive's employment due to a Constructive Termination that constitutes a
Covered Termination shall not be treated as a "voluntary termination" covered by
this Section 7.2.
7.3 Accrued Vacation Pay. In addition to any other amount payable under
this Section 7, Executive will be entitled to receive any accrued vacation pay
in accordance with the Company's vacation pay policy then in effect for
employees generally.
7.4 Mitigation. Except as otherwise specifically provided herein,
Executive shall not be required to mitigate damages or the amount of any payment
provided under this Agreement by seeking other employment or otherwise, nor
shall the amount of any payment provided for under this Agreement be reduced by
any compensation earned by Executive as a result of employment by another
employer or by any retirement benefits received by Executive after the date of
the termination of Executive's employment or otherwise.
7.5 Tax Consequences. Executive acknowledges that he has been advised by
the Company to consult with a tax advisor or attorney with respect to the tax
consequences, if any, of this Agreement to his stock option grants.
7.6 Employee Agreement And Release Prior to Receipt of Benefits. Upon the
occurrence of a Company Termination or a Covered Termination, and prior to the
receipt of any benefits under this Agreement on account of such termination,
Executive shall execute the Employee Agreement and Release (the "Release") in
the form attached hereto as Exhibit B. Such Release shall specifically relate to
all of Executive's rights and claims in existence at the time of such execution
and shall confirm Executive's obligations under the Company's standard form of
proprietary information and inventions agreement. It is understood that
Executive has twenty-one (21) calendar days to consider whether to execute such
Release, and Executive may revoke such Release within seven (7) calendar days
after execution. In the event Executive does not execute such Release within the
twenty-one (21)-day period, or if Executive revokes such Release within the
subsequent seven (7)-day period, no benefits shall be payable under this
Agreement, and this Agreement shall be null and void.
7.7 Limitation on Competitive Activities. While employed by the Company
and during the twelve (12) month period after the occurrence of a Company
Termination or a Covered Termination, Executive will not directly or indirectly
(whether for compensation or without compensation), as an individual proprietor,
partner, stockholder, officer, employee, consultant, director, joint venturer,
investor, lender, or in any other capacity whatsoever (other than as the holder
of not more than one percent (1%) of the total outstanding stock of a publicly
held company), engage in any business activity that is competitive with the
business of the Company ("Competitive Activity"). For purposes of this
Agreement, "Competitive Activity" shall be deemed to include, without
limitation, obtaining employment, performing work or providing services to SAP,
PeopleSoft, Oracle, Hyperion or QSP (or any related corporation, partnership or
other related entity). These Competitive Activities are prohibited in addition
to any limitations on Executive's activities
4
set forth in his Proprietary Information Agreement with the Company, and they
are considered by the parties hereto to constitute a reasonable restriction for
the purpose of protecting the business of the Company. However, if any such
limitation is found by a court of competent jurisdiction to be unenforceable
because it extends for too long a period or over too great a range of activities
or in too broad a geographic area, it shall be interpreted to extend only over
the maximum period of time, range of activities or geographic area as to which
it may be enforceable. If Executive does not comply with any of the foregoing,
no benefits shall be payable under this Agreement, any benefits previously paid
to Executive pursuant to this Agreement shall be repaid or surrendered to the
Company, and this Agreement shall be null and void.
7.8 Certain Reductions in Payments.
(a) Anything in this Agreement to the contrary notwithstanding, in the
event that any payment, distribution or other benefit provided by the Company to
or for the benefit of Executive (whether paid or payable or provided or to be
provided pursuant to the terms of this Agreement or otherwise) (a "Payment")
would (i) constitute a "parachute payment" within the meaning of Section 280G of
the Internal Revenue Code of 1986 ("the Code") and (ii) but for this Section
7.7, be subject to the excise tax imposed by Section 4999 of the Code (the
"Excise Tax"), then, in accordance with this Section 7.7, such Payments shall be
reduced to the maximum amount that would result in no portion of the Payments
being subject to the Excise Tax, but only if and to the extent that such a
reduction would result in Executive's receipt of Payments that are greater than
the net amount Executive would receive (after application of the Excise Tax) if
no reduction is made. The amount of required reduction, if any, shall be the
smallest amount so that the Executive's net proceeds with respect to the
Payments (after taking into account payment of any Excise Tax and all federal,
state and local income, employment or other taxes) shall be maximized. If,
notwithstanding any reduction described in this Section 7.7 (or in the absence
of any such reduction), the Internal Revenue Service (the "IRS") determines that
a Payment is subject to the Excise Tax (or subject to a different amount of the
Excise Tax than determined by the Company or the Executive), then Section 7.7(c)
shall apply. If the Excise Tax is not eliminated pursuant to this Section 7.7,
Executive shall pay the Excise Tax.
(b) All determinations required to be made under this Section 7.7
shall be made by the Company's independent auditors. Such auditors shall
provide detailed supporting calculations both to the Company and Executive. Any
such reasonable determination by the Company's independent auditors shall be
binding upon the Company and Executive. The Executive shall determine which and
how much of the Payments, including without limitation any option acceleration
benefits provide under this Agreement or any option ("Option Benefits"), as the
case may be, shall be eliminated or reduced consistent with the requirements of
this Section 7.7, provided that, if Executive does not make such determination
within ten (10) business days of the receipt of the calculations made by the
Company's independent auditors, the Company shall elect which and how much of
the Option Benefits or other Payments, as the case may be, shall be eliminated
or reduced consistent with the requirements of this Section 7.7, and then the
Company shall
5
notify Executive promptly of such election. Within five (5) business days
thereafter, the Company shall pay to or distribute to or for the benefit of
Executive such amounts as are then due to Executive under this Agreement.
(c) As a result of the uncertainty in the application of Section 280G
of the Code at the time of the initial determination by the Company's
independent auditors hereunder, it is possible that Option Benefits or other
Payments, as the case may be, will have been made by the Company which should
not have been made ("Overpayment") or that additional Option Benefits or other
Payments, as the case may be, which will not have been made by the Company could
have been made ("Underpayment"), in each case, consistent with the calculations
required to be made hereunder. In the event that the Company's independent
auditors, based upon the assertion of a deficiency by the IRS against Executive
or the Company which the Company's independent auditors believe has a high
probability of success, determine that an Overpayment has been made, any such
Overpayment paid or distributed by the Company to or for the benefit of
Executive shall be treated for all purposes as a loan ab initio to Executive
which Executive shall repay to the Company together with interest at the
applicable federal rate provided for in Section 7872(f)(2) of the Code;
provided, however, that no such loan shall be deemed to have been made and no
amount shall be payable by Executive to the Company if and to the extent such
deemed loan and payment would not either reduce the amount on which Executive is
subject to tax under Section 1 and Section 4999 of the Code or generate a refund
of such taxes. In the event that the Company's independent auditors, based upon
controlling precedent or other substantial authority, determine that an
Underpayment has occurred, any such Underpayment shall be promptly paid by the
Company to or for the benefit of Executive together with interest at the
applicable federal rate provided for in Section 7872(f)(2) of the Code.
7.9 Definitions. For purposes of this Section 7, the following terms are
defined as follows:
(a) "Base Salary" means Executive's base salary (excluding overtime,
bonuses, draws, commissions and other forms of additional compensation and
benefits), at the rate in effect during the last regularly scheduled payroll
period immediately preceding any termination of Executive's employment.
(b) "Cause" means any of the following, as determined in good faith by
the Board: (i) an intentional act which materially injures the Company; (ii) an
intentional refusal or failure to follow lawful and reasonable directions of the
Board or an individual to whom Executive reports (as appropriate); (iii) a
willful and habitual neglect of duties; or (iv) a conviction of a felony
involving moral turpitude which is reasonably likely to inflict or has inflicted
material injury on the Company.
(c) "Change of Control" means that the Company (i) merges or combines
with any other company or entity and the Company is not the surviving
corporation, or the stockholders of the Company immediately prior to the merger
or consolidation do not hold a majority of the shares of the resulting
corporation; (ii) sells all or substantially all its assets to any other company
or entity; or (iii) has forty percent (40%) or more of its stock acquired by a
person and/or affiliates of such person .
6
(d) "COBRA Continuation Benefits" means that Executive shall receive
the following benefits: Executive and Executive's covered dependents who are
enrolled in a health or dental plan sponsored by the Company may be eligible to
continue coverage under such health or dental plan (or to convert to an
individual policy), at the time of the Executive's termination of employment
under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). The
Company will notify the individual of any such right to continue health coverage
at the time of termination. The Company will continue to pay its share of
Executive's health insurance premiums until: (i) in the case of a Company
Termination, three (3) months after the date of termination; and (ii) in the
case of a Covered Termination, the earlier of twelve (12) months after the date
of termination or such time as the Executive becomes eligible to participate in
another employer's health insurance plan (the "COBRA Period"); provided that
Executive elects to continue coverage under COBRA and timely pays Executive's
portion of the premiums. No provision of this Agreement will affect the
continuation coverage rules under COBRA, except that the Company's payment of
any applicable insurance premiums during the COBRA Period will be credited as
payment by Executive for purposes of Executive's payment required under COBRA.
Therefore, the period during which Executive must elect to continue the
Company's group medical or dental coverage at his or her own expense under
COBRA, the length of time during which COBRA coverage will be made available to
the Executive, and all other rights and obligations of Executive under COBRA
(except the obligation to pay insurance premiums that the Company pays during
the COBRA Period) will be applied in the same manner that such rules would apply
in the absence of this Agreement.
(e) "Constructive Termination" means that Executive voluntarily
terminates employment after any of the following are undertaken without
Executive's express written consent: (A) the assignment to Executive of any
duties or responsibilities which result in a diminution or adverse change of
Executive's position, status or circumstances of employment; provided, however,
that a mere change in Executive's title or reporting relationship shall not
constitute a Constructive Termination; (B) a reduction by the Company in
Executive's Base Salary; (C) a relocation of Executive's business office to a
location more than thirty (30) miles from the location at which Executive
performs duties as of the date of this Agreement, except for required travel by
Executive on the Company's business to an extent substantially consistent with
Executive's business travel obligations; (D) any breach by the Company of any
provision of this Agreement or any other material agreement between Executive
and the Company concerning Executive's employment; or (E) any failure by the
Company to obtain the assumption of this Agreement by any successor or assign of
the Company.
(f) "Involuntary Termination Without Cause" means Executive's
dismissal or discharge other than for Cause. The termination of Executive's
employment as a result of Executive's death or disability will not be deemed to
be an Involuntary Termination Without Cause.
8. INDEMNIFICATION AND DIRECTORS AND OFFICERS INSURANCE. The Company
shall indemnify Executive for all acts or omissions of Executive while Executive
is serving as an officer or director of the Company to the fullest extent not
prohibited either by the Company's Certificate of Incorporation or Bylaws or by
the laws of the State in which the Company is incorporated. If the Company
chooses to insure some or all of this liability or related liabilities through
the purchase of a directors and officers liability insurance policy ("D&O
Insurance Policy"), Executive shall at all times be a
7
named insured on such policy while Executive is an officer or director of the
Company and the Company is paying the premiums on any D&O Insurance Policy.
9. NONEXCLUSIVITY. Nothing in this Agreement shall prevent or limit
Executive's continuing or future participation in any benefit, bonus, incentive
or other plans, programs, policies or practices provided by the Company and for
which Executive may otherwise qualify, nor shall anything herein limit or
otherwise affect such rights as Executive may have under other agreements with
the Company. Except as otherwise expressly provided herein, amounts which are
vested benefits or which Executive is otherwise entitled to receive under any
plan, policy, practice or program of the Company at or subsequent to the date of
a Covered Termination or Company Termination shall be payable in accordance with
such plan, policy, practice or program.
10. ATTORNEYS FEES. The Company shall pay reasonable legal fees and costs
incurred by Executive in the negotiation and drafting of this agreement, up to a
maximum of $5,000.
11. NOTICES. All notices, request, consents and other communications
required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered or delivered by
registered or certified mail (return receipt requested), or private overnight
mail (delivery confirmed by such service), to the address listed below (or to
such other address as either party shall designate by notice in writing to the
other in accordance herein):
If to the Company:
Xxxxxx Interactive Systems, Inc.
Marathon Plaza Three North
000 Xxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Attention: Chief Financial Officer
If to the Executive:
Xxxxx X. Xxxxxxxxxx
[Home Address]
12. GENERAL.
12.1 Entire Agreement. This Agreement, together with the exhibits
and agreements referred to herein, sets forth the complete, final and exclusive
embodiment of the entire agreement between Executive and the Company with
respect to the subject matter hereof. This Agreement is entered into without
reliance upon any promise, warranty or representation, written or oral, other
than those expressly contained herein, and it supersedes any other such
promises, warranties, representations or agreements.
12.2 Severability. If a court of competent jurisdiction determines
that any term or provision of this Agreement is invalid or unenforceable, then
the remaining terms and provisions shall be unimpaired. Such court shall have
the authority to modify or replace the invalid or unenforceable term or
provision with a valid and enforceable term or provision which most accurately
represents the parties' intention with respect to the invalid or unenforceable
term or provision.
8
12.3 Amendment or Termination of Agreement. This Agreement may be
changed or terminated upon the mutual written consent of the Company and
Execuitve. The written consent of the Company to a change or termination of this
Agreement must be signed by an executive officer of the Company after such
change or the Board has approved termination.
12.4 Successors and Assigns. This Agreement shall bind the heirs,
personal representatives, successors, assigns, executors and administrators of
each party, and inure to the benefit of each party, its heirs, successors and
assigns. However, because of the unique and personal nature of Executive's
duties under this Agreement, Executive agrees not to delegate the performance of
his or her duties under this Agreement.
12.5 Applicable Law. This Agreement shall be deemed to have been
entered into and shall be construed and enforced in accordance with the laws of
the State of California as applied to contracts made and to be performed
entirely within California.
12.6 Headings. This section headings contained herein are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.
12.7 Counterparts. This Agreement may be executed in two
counterparts, each of which shall be deemed an original, all of which together
shall constitute one and the same instrument.
In Witness Whereof, the parties have duly authorized and caused this
Agreement to be executed as follows:
EXECUTIVE: Xxxxxx Interactive Systems, Inc.
Xxxxx X. Xxxxxxxxxx
By:
-------------------------- -----------------------------------------
Date: , 1999 Title:
-------------- --------------------------------------
Date: , 1999
--------------
9
Exhibit B
EMPLOYEE AGREEMENT AND RELEASE
I understand and agree completely to the terms set forth in the foregoing
agreement.
I hereby confirm my obligations under the Xxxxxx Interactive Systems,
Inc.'s (the "Company") proprietary information and inventions agreement.
In granting the release herein, I acknowledge that I understand that I am
waiving the benefit of any provision of law in any jurisdiction to the following
effect: "A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected her settlement with the
debtor." (California Civil Code section 1542). I hereby expressly waive and
relinquish all rights and benefits under that section and any law or legal
principle of similar effect in any jurisdiction with respect to the release of
unknown and unsuspected claims granted in this Agreement.
Except as otherwise set forth in this Agreement, I hereby release, acquit
and forever discharge the Company, its parents and subsidiaries, and its and
their respective officers, directors, agents, servants, employees, shareholders,
successors, assigns and affiliates, of and from any and all claims, liabilities,
demands, causes of action, costs, expenses, attorneys fees, damages, indemnities
and obligations of every kind and nature, in law, equity, or otherwise, known
and unknown, suspected and unsuspected, disclosed and undisclosed (other than
any claim for indemnification I may have as a result of any third party action
against me based on my employment with the Company), arising out of or in any
way related to agreements, events, acts or conduct at any time prior to the date
I execute this Agreement, including but not limited to: all such claims and
demands directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment, including but
not limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands related
to salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, vacation pay, fringe benefits, expense reimbursements,
severance pay, or any other form of compensation; claims pursuant to any
federal, state or local law or cause of action including, but not limited to,
the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
in Employment Act of 1967, as amended ("ADEA"); the federal Employee Retirement
Income Security Act of 1974, as amended; the federal Americans with Disabilities
Act of 1990; the California Fair Employment and Housing Act, as amended; tort
law; contract law; wrongful discharge; harassment; discrimination; fraud;
defamation; emotional distress; and breach of the implied covenant of good faith
and fair dealing; provided, however, that nothing in this paragraph shall be
construed in any way to release the Company from its obligation to indemnify me
pursuant to the Company's indemnification agreement.
I acknowledge that I am knowingly and voluntarily waiving and releasing any
rights I may have under ADEA. I also acknowledge that the consideration given
for the waiver and release in the preceding paragraph hereof is in addition to
anything of value to which I was already entitled. I further acknowledge that I
have been advised by this writing, as required by the ADEA, that: (A) my waiver
and release do not apply to any rights or claims that may arise on or after the
date I execute this Agreement; (B) I have the right to consult with an attorney
prior to executing this Agreement; (C) I have twenty-one (21) days to consider
this Agreement (although I may choose to voluntarily execute this Agreement
earlier); (D) I have seven (7) days following the execution of this Agreement by
the parties to revoke the Agreement; and (E) this Agreement shall not be
effective until the date upon which the revocation period has expired, which
shall be the eighth day after this Agreement is executed by me, provided that
the Company has also executed this Agreement by that date (the "Effective
Date").
XXXXXX INTERACTIVE SYSTEMS, INC. XXXXX X. XXXXXXXXXX
By:
-------------------------------- --------------------------------------
Title: Date:
----------------------------- --------------------------------
