Exhibit 10.16
EMPLOYMENT AGREEMENT
This Employment Agreement (the "Agreement") is dated as of June 11, 1997 between
Exigent International Inc., a Delaware Corporation (the "Company") and Xxx X.
Xxxxxxx, Xx. (the "Employee").
WHEREAS, Company has determined that it would be desirable and in the best
interests of Company to continue to employ Employee, and Employee wishes to
continue his employment with Company.
NOW, THEREFORE, in consideration of the mutual promises of the parties
hereinafter contained, and for other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, Company and Employee agree
as follows:
1. EMPLOYMENT. Company hereby employs the Employee and the Employee hereby
accepts employment upon the terms and conditions set forth in this
Agreement. Employee will serve as Exigent Chief Financial Officer of
Company, at the discretion of the Company's Chief Executive Officer
("CEO").
2. TERM. Unless sooner terminated as set forth herein, the term of this
Agreement ("Term") shall begin on the business day this Agreement is
executed (the "Commencement Date"), and end at midnight on the third
anniversary of the commencement date, unless extended. The Term may be
extended by mutual written agreement of the Company and Employee provided
the parties shall agree in writing at least three months' prior to
expiration of the Term.
3. COMPENSATION.
(a) For all services rendered by the Employee under this Agreement, the
Company shall pay and Employee shall accept an annual salary of
NINETY-TWO THOUSAND and NO/100 DOLLARS ($92,000) per annum or lesser
amount, on a pro rata basis, for any period less than a full year.
This compensation shall be payable to Employee in equal installments
in accordance with the Company's normal pay periods, and shall be
subject to all appropriate withholding taxes.
The annual salary payable to Employee will be subject to upward
adjustment as determined by Company's management and approved by the
Board of Directors in the event that Company generates annual revenues
equal to or greater than that specified in an approved three-year plan
(the "Plan").
(b) In addition to the compensation provided for in Section 3(a), Employee
shall be granted options to purchase up to 50,000 shares of the common
stock, $.01 par value per share, of Company (the "Common Stock"), at
an exercise price of $2.25 per share or 110% of current market value
whichever is higher and on the terms and conditions described in the
Incentive Stock Option Agreement, which Employee agrees to sign,
attached hereto as Exhibit A and incorporated herein by this
reference.
(c) Provided that Employee has not been terminated for due cause (as that
term is defined below in Section 8), in addition to the compensation
provided for in Section (3) (a) above, Company shall grant to Employee
options to purchase an additional 46,000 shares of Common Stock at an
exercise price of $2.25 per share or 110% of current market value
whichever is higher if Company shall receive on or prior to February
1, 1998. (See annual Executive Incentive Plan), including
(i) earnings of at least $2.9 million or prorated in accordance
with the approved Executive Incentive Plan for 1998; or
(ii) new funding for Company of at least $5,000,000, including long
term (at least 5 years) subordinated debt or equity or a
combination of both.
The Board of Directors may, in its sole discretion, award part or all
of the options to purchase such 46,000 shares of Common Stock even if
none of the foregoing conditions are achieved on or prior to February
1, 1998. If and to the extent any such options are awarded pursuant to
this Section 3(c), they shall be awarded on the terms and conditions
described in the form of the Incentive Stock Option Agreement, except
that the amount of Common Stock subject thereto shall be adjusted to
reflect the amount to which Employee is then entitled.
(d) In addition to the compensation provided for in Sections 3(a), (b) and
(c) hereof, Employee shall also be entitled to the following during
the Term of this Agreement:
(i) Four weeks paid vacation annually initially and additional
vacation as appropriate in accordance with Company policy to be
adopted, provided that Employee will endeavor to schedule his
vacation to avoid conflicts with his duties hereunder. During
the term of his employment under the Agreement, Employee shall
be entitled to the holidays and sick leave afforded and
permitted by Company to other employees;
(ii) at Employee's option, group medical insurance and dental
insurance of the kind and to the extent offered from time to
time during the Term of this Agreement to other employees of
Company;
(iii)long-term disability insurance, providing for benefits equal to
66 2/3% of Employee's monthly salary to a maximum of $6,000
(Company will continue to pay Employee's full salary during
periods of short-term disability);
(iv) participation in Company's 401(k) plan, on such terms and
conditions as such participation is made generally available to
all employees of Company;
(v) such other benefits, such as pension, profit sharing,
insurance, short-term disability made generally available by
Company, in its sole discretion, now or in the future to all of
its employees; and
(vi) such other benefits, if any, which the Board of Directors, in
its sole discretion, may make available to Employee.
4. DUTIES; AUTHORITY.
(a) During the Term, Employee shall perform those services reasonably
requested by his immediate manager and the CEO in a manner and to an
extent which will allow the Company to benefit from Employee's
experience in and knowledge of the industry in which the Company is
engaged and as specified in greater detail in Exhibit B attached
hereto and incorporated herein by this reference. During the Term,
Employee shall devote his full professional time, attention, skill and
energy to the business, welfare and affairs of the Company. While
serving as Exigent Chief Financial Officer, Employee shall have the
authority and responsibility to devise and implement strategies and
operations and to supervise and manage all employees in his/her
business unit as shown on the corporate organizational chart approved
by the Board of Directors on June 11, 1997 which is set forth as
Attachment 1 to Exhibit B. Such organization chart may be modified by
the CEO in his discretion after collaboration from Employee. Employee
shall use his best efforts in the performance of his duties hereunder
and to promote the interests of the Company and its present and future
subsidiaries and affiliates. Employee agrees to abide by all rules and
regulations of Company as established or amended from time to time.
(b) The parties agree that Employee may not, without the prior written
consent of Company, be engaged in any other business activity without
Company's prior written consent, whether or not such activity is
pursued for gain, profit or other pecuniary advantage; provided,
however, that subject to the Non-Disclosure and Non-Competition
Agreement set forth in Exhibit D. Employee may passively invest his
personal assets in businesses where the form or manner of such
investment will not require services on the part of Employee.
5. BUSINESS EXPENSES AND REIMBURSEMENTS. Employee shall further be entitled to
reimbursement by Company for other ordinary and necessary business expenses
incurred by Employee in the performance of his duties hereunder, and
further provided that:
(a) Each such expenditure is of a nature qualifying it as a proper
deduction on the federal and state income tax returns of the Company
as a business expense and not as deductible compensation to the
Employee; and
(b) Employee furnishes the Company with adequate records and other
documentary evidence required by federal and state statutes and
regulations for the substantiation of such expenditures as deductible
business expenses of the Company and not as deductible compensation to
the Employee.
Employee agrees that if, at any time, any payment made to the Employee
by the Company as a business expense reimbursement for a particular
item shall be disallowed in whole as a deductible expense to the
Company by the appropriate taxing authorities, Employee shall
reimburse Company to the full extent of such disallowance if so
requested by the Company in writing.
6. PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT. As a condition to his
employment hereunder, Employee agrees to execute and deliver to Company a
Proprietary Information and Inventions Agreement in the form attached
hereto as Exhibit C and incorporated herein by this reference.
7. NON-DISCLOSURE AND NON-COMPETITION AGREEMENT. As a condition to his
employment hereunder, Employee agrees to execute and to deliver to the
Company a Non-Disclosure and Non-Competition Agreement in the form attached
hereto as Exhibit D and incorporated herein by this reference.
8. TERMINATION.
(a) This Agreement may be terminated at any time prior to expiration of
the Term (i) by Employee upon sixty (60) days' prior written notice to
the Company, (ii) upon the disability (defined to mean the inability
of Employee to engage in substantial employment duties by reason of
any medically determinable physical or mental impairment for a
continuous period of 60 days) of Employee, (iii) by the Company for
"due cause" at any time (iv) by the Company without "due cause" at any
time upon fifteen (15) days' prior written notice to the Employee.
(b) In the event of termination pursuant to Section 8(a)(i), or Section
8(a)(iii), the Company shall not be obligated to make any severance
payments or any other further payments hereunder, except with respect
to accrued but unpaid compensation and reimbursements owed Employee
for expenses incurred prior to the effective date of termination. For
purposes of Section 8, "due cause" shall mean personal dishonesty,
willful misconduct, breach of a fiduciary duty involving personal
profit, willful violation of any law, rule, regulation (other than a
law, rule or regulation relating to offenses or misdemeanors unrelated
to any of the foregoing or to the Company's business) or final cease
and desist order, or material breach of any provision of this
Agreement, including but not limited to Employee's obligations under
Sections 4 hereof or a material breach of any of Employee's
obligations under Proprietary Information and Inventions Agreement
attached hereto as Exhibit C or under the Non-Disclosure and
Non-Competition Agreement attached hereto as Exhibit D.
(c) In the event of termination by the Company pursuant to Section
8(a)(iv) (i.e., without due cause), then in addition to any amounts to
which Employee is entitled under Section 8(b), Employee shall also be
entitled to receive severance pay as follows:
(i) If Employee is so terminated without due cause within the first
twelve months of the Term ("First Year"), an amount equal to
eighteen (18) months' salary, based on the then current salary
of Employee as of the effective date of termination, payable in
equal installments in accordance with Company's normal pay
periods for Employee (i.e. weekly, bi-weekly or monthly)
beginning one pay period after the effective date of
termination;
(ii) If Employee is so terminated without due cause within the
second twelve months of the Term ("Second Year"), an amount
equal to twelve (12) months' salary, based on the then current
salary of Employee as of the effective date of termination,
payable in equal installments in accordance with Company's
normal pay periods for Employee beginning one pay period after
the effective date of termination;
(iii)If Employee is so terminated without due cause within the third
twelve months of the Term ("Third Year"), an amount equal to
six (6) months' salary, based on the then current salary of
Employee as of the effective date of termination, payable in
equal installments in accordance with Company's normal pay
periods for Employee beginning one pay period after the
effective date of termination; and
(iv) If Employee is still employed by Company after the Third Year,
and (in the absence of any superseding arrangement with
Company, whether pursuant to renewal of this Agreement or
otherwise) is so terminated without due cause, an amount equal
to three (3) months' salary, based on the then current salary
of Employee as of the effective date of termination, payable in
equal installments in accordance with Company's normal pay
periods for Employee beginning one pay period after the
effective date of termination.
(d) In the event of termination by the Company pursuant to Section
8(a)(iv) (i.e. without due cause), Employee shall also be entitled to
receive, at his option and upon his written request, group medical
insurance as described in Section 3(d)(ii) during the period Employee
is entitled to receive severance pay under Section 8(d) plus, if
applicable, any additional extension of the applicable
"Non-Competition Period" (as defined in the Non-Disclosure and
Non-Competition Agreement, pursuant to Section 3(g) of such
agreement).
(e) In the event of termination upon Employee's disability pursuant to
Section 8(a)(ii), the Company agrees to continue Employee's regular
salary payments from the date of termination through the date the
insurance company commences long term disability insurance payments or
denies coverage. In the event long term disability coverage is denied
due to admitted or proven fraud on behalf of the Employee, the Company
will have no severance payment obligations to Employee. If coverage is
denied for any other reason, Employee's termination will be treated as
termination without due cause under Section 8(a)(iv) and Employee will
be entitled to severance pay under Section 8(c) provided any such
regular salary payments made by Company to Employee under this Section
8(e) will be credited against Company's severance payment obligations.
(f) Notwithstanding anything to the contrary set forth in this Agreement,
in the event that Employee dies during the Term of this Agreement or
any extension thereof, this Agreement shall terminate upon the date of
such death, provided that in the event of Employee's death during the
Term of this Agreement or any extension thereof the Company shall
continue to pay Employee's salary for a period of ninety (90) days
following the date of death to the executor or administrator of the
Employee's estate, except in no event shall the Company be liable for
the payment of any such death benefit which exceeds the maximum
severance payment obligations pursuant to Section 8(e) above.
9. NOTICES. Any notice required or permitted hereunder shall be in writing and
shall be sufficiently given if personally delivered, delivered by facsimile
telephone transmission, delivered by express delivery service (such as
Federal Express), or mailed first class U.S. mail, postage prepaid,
addressed as follows:
If to the Employee:
Xxx X. Xxxxxxx, Xx.
000 Xx Xxxxx Xxxxxx
Xxxxxxxxx Xxxxx, XX 00000
If to the Company:
Exigent International Inc.
0000 Xxxxx Xxxx
Xxxxxxxxx, XX 00000
Attn: Legal Counsel
(or to such other address as any party shall specify by written
notice so given), and shall be deemed to have been delivered as of
the date so delivered or three (3) days after mailing for domestic
mail and seven (7) days for international mail.
10. BINDING EFFECT; BENEFITS. This Agreement shall be binding upon and shall
inure to the benefit of this parties hereto and their respective successors
and assigns, if any. Notwithstanding anything contained in this Agreement
to the contrary, nothing in this Agreement, expressed or implied, is
intended to confer on any person other than the parties hereto or their
respective heirs, successors, executors, administrators or assigns any
rights, remedies, obligations or liabilities under or by reason of this
Agreement.
11. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Florida, without
reference to principles of conflict of laws.
12. HEADINGS. Headings of the Sections of this Agreement are for the
convenience of the parties only, and shall be given no substantive or
interpretive effect whatsoever.
13. NO CONFLICT. Employee represents and warrants that performance of the terms
of this Agreement, and the terms of any agreement attached hereto as an
Exhibit, to the best of his actual knowledge, will not breach any agreement
entered into by Employee, and Employee agrees that he will not enter into
any agreement in conflict with this Agreement and the agreements attached
as Exhibits. Employee further covenants that (i) he shall not in the
performance of his duties hereunder (and the performance of such duties
shall not require him to) utilize any proprietary or confidential
information owned by any third party which he is prohibited from utilizing
by reason of agreement or applicable law, and (ii) he shall not at any time
disclose to Company any proprietary or confidential information owned by
any third party which he is prohibited from disclosing by reason of
agreement or applicable law.
14. INJUNCTIVE RELIEF. Employee acknowledges and agrees that a breach of his
obligations under this Agreement, and any agreement attached hereto as an
Exhibit or any other exhibit or attachment hereto, will result in
irreparable and continuing harm to the Company, for which there will be no
adequate remedy at law, and agrees that in the event of any breach or
prospective breach of this Agreement, the Company, its successors and
assigns will be entitled to injunctive relief in any federal or state court
of competent jurisdiction residing in the State of Florida without the
necessity of posting bond or other security therefor and without the
necessity of proving irreparable harm, and to such other and further relief
as may be proper. Employee hereby submits to the jurisdiction of the
preceding courts for the purposes of any actions or proceedings instituted
by the Company to obtain such injunctive relief, and agrees that the
process may be served on the Employee by registered mail, addressed to the
last address of the Employee known to the Company, or in any manner
authorized by law.
15. SEVERABILITY. If for any reason whatsoever, any one or more of the
provisions of this Agreement shall be held or deemed to be inoperative,
unenforceable or invalid as applied to any particular case or in all cases,
such circumstances shall not have the effect of rendering such provision
invalid in any other case or of rendering any of the other provisions of
this Agreement inoperative, unenforceable or invalid.
16. ASSIGNABILITY. By reason of the special and unique nature of the services
hereunder, it is agreed that neither party hereto may assign any interest,
rights or duties which it or he may have in this Agreement without the
prior written consent of the other party, except that upon any merger,
liquidation, or sale of all or substantially all of the assets of the
Company to another corporation, this Agreement shall inure to the benefit
of and be binding upon the Employee and the purchasing, surviving or
resulting company or corporation in the same manner and to the same extent
as though such company or corporation were the Company.
17. WAIVERS. The failure or delay of the Company at any time to require
performance by the employee of any provision of this Agreement, even if
know, shall not affect the right of the Company to require performance of
that provision or to exercise any right, power or remedy hereunder, and any
waiver by the Company of any breach of any provision of this Agreement
should not be construed as a waiver of any continuing or succeeding breach
of such provision, a waiver of the provision itself, or a waiver of any
right, power or remedy under this Agreement. No notice to or demand on
Employee in any case shall, of itself, entitle Employee to any other or
further notice or demand in similar or other circumstances.
18. INDEMNIFICATION. Company agrees to exercise its power to indemnify Employee
in the situations provided in the Company's current Certificate of
Incorporation in its form filed with the Secretary of State for the State
of Delaware as of the date of this Agreement. This indemnification shall
apply even if such Certificate is later amended or deleted.
19. COVENANTS OF THE ESSENCE. The covenants of Employee set forth in this
Agreement and the other Exhibits are the essence of this Agreement; they
shall be construed as independent of any other provision in this Agreement;
and the existence of any claim or cause of action of the Employee against
the Company, whether predicated on this Agreement or not, shall not
constitute a defense to the enforcement by the Company of these covenants.
20. SURVIVAL. The provisions of this Agreement will survive the termination or
expiration of this Agreement where the intent so indicates they shall
survive and all other obligations of the Company and the Employee will
cease on termination or expiration of this Agreement. Notwithstanding the
foregoing, the Company and the Employee will remain liable for obligations
which accrued before termination or expiration of this Agreement (including
the Employee's right to be paid or reimbursed for services rendered and
expenses incurred before termination or expiration of this Agreement.)
21. ENTIRE AGREEMENT. This Agreement, together with the agreements in the form
attached as Exhibits hereto and all other exhibits and attachments hereto,
constitutes the final written expression of all of the agreements between
the parties with respect to the subject matter hereof, supersedes all
correspondence, understandings, discussions and negotiations concerning the
matters specified herein, and specifically supersedes in its entirety other
agreements between Company and Employee. No addition to or modification of
any provision of this Agreement shall be binding upon any party unless made
in writing and signed by the party to be bound.
IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
on the date written above.
EXIGENT INTERNATIONAL, INC.
/S/ B. R. XXXXXXX
----------------------------------------
Name: B.R. XXXXXXX
Title: CEO & CHAIRMAN
/S/ XXX X. XXXXXXX, XX.
----------------------------------------
(Employee Signature)
EXHIBIT A
INCENTIVE STOCK OPTION AGREEMENT (PLAN 1Q)
THIS AGREEMENT dated as of the 11th day of June, 1997, (the "Grant Date")
by and between EXIGENT INTERNATIONAL, INC., with its principal office at 0000
Xxxxx Xxxx, Xxxxxxxxx, Xxxxxxx 00000 (the "Company"), and Xxx X. Xxxxxxx, Xx.
("Optionee").
WITNESSETH:
WHEREAS, the Company has adopted an Incentive Stock Option Plan (the "Plan
1Q") as defined in Section 422 of the Internal Revenue Code of 1986 to permit
options to purchase shares of the common stock of Exigent International, Inc. to
be granted to certain key employees of the Company or its subsidiaries; and
WHEREAS, the Optionee is a key employee of the Company or one of its
subsidiaries and the Company desires him/her to remain in such employee by
providing him/her with a means to acquire or to increase his/her proprietary
interest in the Company's success;
NOW, THEREFORE, in consideration of the promises and of the covenants and
agreement set forth, the parties hereby mutually covenant and agree as follows:
1. Subject to the terms and conditions of the Plan 1Q, a copy of which is
attached hereto as Exhibit "A" and made a part hereof, and this Agreement, the
Company grants to the Optionee the option to purchase from the Company all or
any part of an aggregate number of 50,000 shares of Exigent International,
Inc.'s Common Shares (30,000,000 authorized shares, par value $0.01)
(hereinafter such shares are referred to as the "Optioned Shares").
2. The price to be paid for the Optioned Shares shall be Two and 25/100
dollars ($2.25) per share, or 110% of current market value whichever is higher,
of the Optioned Shares on the Grant Date, as determined in good faith by the
President of the Company who is in charge of administering the Plan 1Q. However,
if it is determined by a subsequent Internal Revenue Service audit that the fair
market value of the stock at the time the option was granted exceeded the value
established by the President, then the option value shall be adjusted to comply
with the Internal Revenue Service's determined fair market value, and such
adjusted value shall apply to any and all subsequent exercise of options.
3. Subject to terms and conditions of the Plan 1Q and this Agreement,
Optioned Shares may be purchased pursuant to this Agreement at any time and from
time to time during a period of three (3) years from the date hereof, in whole
or in part. All options to purchase Optioned Shares subject to this Agreement
must be exercised on or before June 11, 2000 at which time all unexercised
options will expire.
4. An option may be exercised only by written notice, delivered or mailed
by postpaid registered or certified mail addressed to the Secretary of the
Company at the corporate headquarters, specifying the number of Optioned Shares
being purchased in cash or its equivalent. Within five (5) business days
following the date of exercise, payment shall be made in full or by such other
payment means as shall be mutually agreeable. Such purchased shares shall be
forthwith delivered to Optionee.
5. (a) If the Optionee's employment with the Company or any subsidiary of
the Company is terminated for due cause, this Agreement shall terminate
simultaneously therewith and Optionee shall have no further right to exercise an
option thereafter. For purposes of this paragraph, "due cause" shall be the same
as defined in the Employment Agreement.
(b) If the Optionee ceases to be an employee of the Company or any
subsidiary of the Company for any reason other than (1) termination for due
cause as set forth in paragraph 5(a) above, or (2) death or disability, the term
of any option shall expire on a date not later than three (3) months after
termination.
(c) If the Optionee ceases to be an employee of the Company or any
subsidiary of the Company by reason of disability or death within the meaning of
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended, the term of
any option shall expire on a date which is not later than twelve (12) months
following the date of death or disability.
6. The options herein granted shall not be transferable by the Optionee
otherwise than by will or the laws of descent and distribution, and may be
exercised during the life of the Optionee only by the Optionee, except as set
forth in 5( c) above.
7. If any change is made in the shares subject to the Plan 1Q or any option
granted thereunder (through merger, consolidation, reorganization,
recapitalization, or change in capital structure), appropriate adjustment shall
be made by the Company in the number of shares and kind of common stock for
which options may be or may have been granted under the Plan 1Q, to the end that
such proportional interest shall be maintained as before the occurrence of such
an event.
8. (a) Optionee acknowledges and understands that the Optioned Shares have
not been registered with the Securities and Exchange Commission under the
Securities Act of 1933, as amended, in reliance upon the exemption from
registration provided in Regulation D of the Act, nor with any state securities
regulatory authority in reliance upon particular statutory transactional
exemptions. As such, the shares purchased under this Agreement, if exercised,
cannot be sold subsequently or otherwise transferred without prior (1)
registration under the Act and under applicable state law or (2) receipt of an
opinion of counsel for the issuer to the effect that such proposed sale or other
transfer does not affect the exempt status of the original issuance and sale of
these shares and is in compliance with all applicable state and federal
securities laws.
(b) That Optionee will be acquiring the stock for his/her own
investment and personal interest in the Company and not for the account of any
other person, with no intention on his/her part of affecting a redistribution of
such stock or any part thereof.
(c ) That Optionee has asked questions and received all answers to
information he/she considers pertinent to form a knowledgeable opinion about his
investment.
(d) That the Optionee understands and acknowledges that he/she shall
not be deemed for any purpose to be a shareholder of the Company with respect to
any of the Optioned Shares, except to the extent that the options herein granted
shall have been exercised with respect thereto and a stock certified issued
therefor.
(e) That the existence of the options herein granted shall not affect
in any way the right or power of Exigent International, Inc. to make or
authorize any or all adjustments, recapitalizations, reorganizations, or other
changes in Exigent International Inc.'s capital structure or its business, or
any merger or consolidation of the Company or Exigent International, Inc., or
any issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the common shares of Exigent International, Inc. or the rights
thereof, or dissolution or liquidation of Exigent International, Inc., or any
sale or transfer of all or any part of their assets or business or any other
corporate act or proceeding, whether of a similar character or otherwise.
(f) That as a condition of the granting of the option(s) herein
granted, the Optionee agrees, for himself/herself, and his/her Personal
Representative, that any dispute or disagreements which may arise under or as a
result of or pursuant to this Agreement shall be determined by the President in
his sole discretion, and that any interpretation by the President of the terms
of this Agreement shall be final, binding and conclusive.
9. This Agreement shall not confer upon the Optionee any right with respect
to continuance of employment by the Company or its related corporations, nor
shall it interfere in any way with the right of the Optionee's employer to
terminate the Optionee's employment at any time.
10. As used in this Agreement, the masculine, feminine or neuter gender and
the singular or plural number shall be deemed to include the others whenever the
context so indicates or requires.
11.This Agreement shall be governed and interpreted by the laws of the
State of Florida.
12. This Agreement and any exhibit hereto constitutes the entire agreement
between the parties with respect to the subject matter hereof, and no change or
modification shall be valid unless made in writing and signed by the party
against whom such change or modification is sought to be enforced.
IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its
duly authorized officer and its corporate seal hereunto affixed, and the
Optionee has hereunto affixed his/her hand the day and year first above written.
EXIGENT INTERNATIONAL, INC.
By: /S/ B.R. XXXXXXX
---------------------------
"The Company"
/S/ XXX X. XXXXXXX, XX.
--------------------------
Secretary)
( S E A L )
/S/ XXX X. XXXXXXX, XX.
------------------------------
"The Optionee"
EXHIBIT B
DUTIES, RESPONSIBILITIES AND GOALS FOR XXX XXXXXXX, CFO
Responsible for the company's overall financial plans and policies along with
its accounting practices and the conduct of its relationship with lending
institutions, shareholders and the financial community. Directs treasury,
budgeting, audit, tax, accounting, purchasing, real estate, and insurance
activities for the corporation and its subsidiaries. Has specific responsibility
for developing and coordinating necessary and appropriate accounting and
statistical data for all departments of the business.
POSITION RESPONSIBILITY
Directs the Controller in providing and directing procedures and systems
necessary to maintain proper records and to afford adequate accounting controls
and services.
Directs the Treasurer in activities as custodian of the funds, securities and
assets of the corporation.
Appraises the corporation's financial position and issues monthly, quarterly and
annual financial and operating reports. Directs and coordinates the
establishment of corporate budget programs.
Cooperates with the Vice Presidents in coordinating expenditures programs with
forecasted cash flow.
Directs, consolidates and analyzes all cost accounting procedures together with
other statistical and routine reports, including any desirable analysis of
monthly departmental reports.
Proposes policies for the establishment and maintenance of inventory levels for
raw materials, supplies, material-in-process and finished goods.
Directs the company's insurance programs.
Responsible for the preparation and issuance of the corporation's Annual Report.
Directs and analyzes studies of general economic, business and financial
conditions and their impact on the corporation's policies and operations.
1998 AND 1999 GOALS
FINANCIAL
The Corporate P&L, Balance Sheet and Cash Flow Statements (attachment #1);
Fiat Model (attachment #2); Business Objectives (attachment #3); and 1998
Executive Incentive Program (attachment #4) provide the basis for 1998
corporate financial goals. Achieving these financial goals (financial
statements to be audited next February by Controller and an outside
auditor) measures 60% towards reaching 100% award, plus all other
cumulative goals as described below:
STAFFING
Assist organization in hiring 46 new employees (10%)
Maintain an attrition rate of 3% of actual staff (284 actual at 7/1/97)
(10%)
QUALITY
Quality of Product or Services - customer satisfaction rating of 85% as
measured by an outside audit firm contracted by Exigent (10%)
NEW CUSTOMER ACQUISITION
Assist in acquiring new customer of at least $500K of sales (10%)
ATTACHMENT #1 TO EXHIBIT B
EXIGENT INTERNATIONAL
MANAGEMENT PERFORMANCE MEASUREMENTS
STI STI FOTO Total STI PRODUCTS**
GOV SYS COMM SYS TAG EXIGENT
Revenue 18,000 17,000 1,000 36,000 -
Pretax Earnings* 918 1,835 162 2,915 (1,079)
Net Earnings 567 1,133 100 1,800 (666)
Budgeted G&A Base 16,583 9,656 246 26,485 309
G&A Budget 2,073 1,980 330 4,382 770
Capital Investment 1,000
* PRETAX EARNINGS SHOULD BE AFTER INTEREST AND UNALLOWABLES.
** STI PRODUCTS NET EARNINGS IS SPLIT EVENLY BETWEEN GOVERNMENT AND COMMERCIAL
ATTACHMENT #2 TO EXHIBIT B
FIAT WITH 30% AWARD
PROJECTION FY97 FY98 FY99 FY00 FY01
Total Investment Value (market cap) $16,010,472 $27,900,000 $48,000,000 $82,500,000 $102,000,000
Value Control Stockholders Holdings (2138604) $5,346,510 $7,255,068 $10,040,209 $14,433,255 $15,335,680
Cash Conversion Discount 50% 40% 30% 20% 20%
Cash Employed Growth Capital (300K/year) $125,000 $610,638 $985,897 $1,619,739 $1,721,012
Cash Employed Acquisitions (100K/year) $125,000 $203,546 $281,685 $404,935 $430,253
Value Stock Employed Acquisitions (1M/year) $625,000 $3,392,432 $4,694,749 $6,748,914 $7,170,884
Value Issued Incentive Securities (600K/year) $500,000 $610,638 $2,816,849 $4,049,349 $4,302,530
Budgeted Stock I/O/R (+500K/year) 6,404,189 8,224,189 10,224,169 12,224,169 14,224,189
Control Stockholders' Percent Ownership 33.39% 26.00% 20.92% 17.49% 15.03%
Net Sales Revenue Goals (5%) $30,000,000 $36,000,000 $50,000,000 $65,000,000 $75,000,000
Net After Tax Earnings Goals (15%/year) $(450,000) $1,800,000 $3,000,000 $5,000,000 $6,000,00
Aggregate Dividend Goals $300,000 $839,000 $1,080,000 $1,825,000 $2,220,000
Percent of Net Earnings for Dividend 35.0% 35.5% 36.0% 36.5% 37.0%
Net Worth Buildup $6,109,620 $11,477,236 $19,359,567 $31,308,155 $44,410,304
Book Value Per Share Goals $.95 $1.40 $1.89 $2.56 $3.12
Earnings Per Share Goals $(0.07) $0.22 $0.29 $0.41 $0.42
Guesstimated Price Earnings Ratio 15.0 15.5 16.0 16.5 17.0
ATTACHMENT #3 TO EXHIBIT B
BUSINESS OBJECTIVES
FY 98 revenue of $36M
STI Federal revenue of $18M
STI Commercial revenue of $17M
FotoTag revenue of $1M
FY 98 Earnings of $1.8M
STI Federal earnings of $900K STI
Commercial earnings of $800K
FotoTag earnings of $100K
Raise capital for R&D, minimum $5M
Raise price of stock to $5/share
ATTACHMENT #4 TO EXHIBIT B
1998 EXECUTIVE INCENTIVE PROGRAM
CORPORATE GATE OPENS
If Exigent has:
THEN BONUS OF FOLLOWING % OF BASE SALARY TO BE AVAILABLE TO EACH MANAGER
EARNINGS OF:
$1.4M 15%
$1.7M 30%
$2.0M 45%
$2.3M 60%
$2.6M 90%
$2.9M 100%
The bonus will be split 50% cash and 50% stock, unless the manager prefers it
all in stock.
ADDITIONALLY,
Each manager will have a set of individuals goals covering such areas as
customer relations, employee relations, budget performance, quality goals,
intellectual property creation and management, each tailored to their job
function. In addition, the Division Managers are responsible as follows with the
help of all corporate managers:
SALES REVENUE EARNINGS
STI Commercial $26M $15.5M $2.0
STI Government $26M $21M $1.0
Foto Tag $1M $1M $.5
to permit Corporate Gate to achieve 100% bonus or a pro rata share.
Exhibit C
Proprietary Information and Inventions Agreement
In consideration and as a condition of my employment or continued employment by
Exigent International Inc. and/or by companies which it owns, controls, or is
affiliated with, or their successors in business (the "Company"), I hereby agree
with the Company as follows:
1. Proprietary Information. I understand that during my employment I may
produce, obtain, make known, or learn about certain information which has
commercial value in the business in which the Company is engaged and which
is treated by the Company as confidential. This information may have been
created, discovered, or developed by the Company or otherwise received by
the Company from third parties subject to a duty to maintain the
confidentiality of such information. All such information is hereinafter
called "Proprietary Information."
(a) Proprietary Information Defined. By way of illustration, but not
limitation, "Proprietary Information" includes trade secrets, ideas,
processes, formulas, source codes, data, programs, other original
works of authorship, know-how, improvements, discoveries,
developments, designs, inventions, techniques, marketing plans,
strategies, forecasts, new products, unpublished financial statements,
budgets, projections, licenses, prices, costs, and customers and
supplier lists.
(b) Assignment and Protection of Proprietary Information. I understand
that all Proprietary Information shall be the sole property of the
Company and its assigns (or, in some cases, its clients, suppliers, or
customers), and the Company and its assigns (or in some cases, its
clients, suppliers, or customers) shall be the sole owner of all
patents, copyrights, and other rights in connection therewith. I
hereby assign to the Company any rights I may have or acquire in such
Proprietary Information. At all times, both during my employment by
the Company and after its termination, I will keep in strictest
confidence and trust all Proprietary Information, and I will not use,
reproduce, or disclose any Proprietary Information without the written
consent of the Company, except as may be necessary in the ordinary
course of performing my duties as an employee of the Company.
(c) Maintenance of Records. I agree to keep and maintain adequate and
current records of all proprietary information developed by me (in the
form of notes, sketches, drawings and as may be specified by the
Company) which records shall be available to and remain the sole
property of the Company at all times.
2. Inventions During and Immediately After My Term of Employment. I understand
that during my employment or following my employment, I may make, conceive
of, or reduce to practice various discoveries, developments, designs,
improvements, inventions, formulas, processes, techniques, programs, other
works of authorship, know-how, and data (all of which shall be referred to
as "inventions" throughout this Agreement, whether or not patentable or
registrable under copyright, mask work, or similar statutes).
(a) Assignment of Inventions. I hereby assign and transfer to the Company
my entire right, title, and interest in and to all inventions made or
conceived or reduced to practice by me, either alone or jointly with
others, during the period of my employment with the Company, except
for those inventions which I have developed entirely on my own time
without using the Company's equipment, supplies, facilities, or trade
secret information excluding those inventions that either: (1) relate
at the time of conception or reduction to practice of the invention to
the business, or actual or demonstrably anticipated research or
development of the Company; or (2) result from any work performed by
me for the Company. I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within
the scope of my employment and which are protectable by copyright are
"works made for hire," as that term is defined in the U.S. Copyright
Act as in effect as of this date. I will, at the Company's request,
promptly execute a written assignment of title to the Company for any
such invention and I will preserve any such invention as confidential
information of the Company.
Notwithstanding the foregoing, I also hereby assign and transfer to,
or as directed by, the Company all my right, title, and interest in
and to any and all inventions, full title to which is required to be
in the United States by a contract between the Company and the United
States or any of its agencies.
(b) Maintenance of Records. I agree to keep and maintain adequate and
current records of all inventions made by me (in the form of notes,
sketches, drawings and as may be specified by the Company) which
records shall be available to and remain the sole property of the
Company at all times.
(c) Disclosure of Inventions. I will promptly disclose in writing to the
Company all inventions made or conceived or reduced to practice by me,
either alone or jointly with others, during the period of my
employment, and for six months after termination of my employment with
the Company.
(d) Execution of Documents. I further agree as to all inventions to assist
the Company in every proper way (but at the Company's expense) to
obtain and from time to time enforce patents, copyrights, mask works,
and other rights and protections relating to inventions in any and all
countries, and to that end I will execute all documents for use in
applying for and obtaining such patents, copyrights, mask works, and
other rights and protections on and enforcing inventions as the
Company may desire, together with any assignments thereof to the
Company or persons designated by it. My obligation to assist the
Company in obtaining and enforcing patents, copyrights, mask works,
and other rights and protections relating to inventions in any and all
countries shall continue beyond the termination of my employment, but
the Company shall compensate me at a reasonable rate after such
termination for time actually spent by me at the Company's request on
such assistance. In the event the Company is unable, after reasonable
effort, to secure my signature on any document or documents needed to
obtain or enforce any patent, copyright, mask work, or other right or
protection relating to any inventions, whether because of my physical
or mental incapacity or for any other reason whatsoever, 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 application or
assignment and to do all other lawfully permitted acts to further the
prosecution and issuance to the Company of patents, copyrights, mask
works, or similar protections thereon with the same legal force and
effect as if executed by me.
3. Prior Inventions. I understand that all inventions, if any, patented or
unpatented, which I made prior to my employment by the Company, are
excluded from the scope of this Agreement. To preclude any possible
uncertainty, I have set forth in Item 1 of Exhibit A attached hereto and
made a part hereof a complete list of all of my prior inventions, including
numbers of all patents and patent applications, and a brief description of
unpatented inventions which are not the property of a previous employer. I
represent and covenant that the list is complete and that, if no items are
on the list, I have no such prior inventions. I agree to notify the Company
in writing before I make any disclosure or perform any work on behalf of
the Company which appears to threaten or conflict with proprietary rights I
claim in any invention or idea. In the event of my failure to give such
notice, I agree that I will make no claim against the Company with respect
to any such inventions or ideas.
4. Conflicting Employment Obligations.
(a) Trade Secrets of Others. I represent that I have not brought and will
not bring with me to the Company or use in the performance of my
responsibilities at the Company any devices, materials, or documents
of a former employer that are not generally available to the public,
unless I have obtained express written authorization from the former
employer for their possession and use. The only devices, materials,
documents of a former employer that are not generally available to the
public that I will bring to the Company or use in my employment are
identified on Item 2 of Exhibit A attached hereto, and as to each such
item, I represent that I have obtained express written authorization
for their possession and use in employment with the Company and have
delivered a copy of such written authorization to the Company.
(b) Conflicting Confidentiality Agreements. I agree that during my
employment with the Company, I will not breach any obligation of
confidentiality that I have to former employers. I represent that any
performance under the terms of this Agreement and as an employee of
Company does not and will not breach any agreement to keep in
confidence proprietary information acquired by me in confidence or in
trust prior to employment by the Company. I have not entered into, and
I agree I will not enter into, any agreement either written or oral in
conflict herewith.
5. Government Contracts. I acknowledge that the Company from time to time may
be involved in government projects of a highly classified nature. I further
acknowledge that the Company from time to time may have agreements with
other persons or governmental agencies which impose obligations or
restrictions on the Company regarding inventions made during the course of
work thereunder or regarding the confidential nature of such work or
information disclosed in connection therewith. I agree to be bound by all
such obligations and restrictions and to take all action necessary to
discharge the obligations of the Company thereunder.
6. Termination of Employment. In the event of the termination of my employment
by me or by the Company for any reason, I will deliver to the Company all
documents, notes, drawings, specifications, programs, data, devices, and
other materials of any nature pertaining to my work with the Company and I
will neither take with me nor recreate any of the foregoing, any
reproduction of any of the foregoing, or any Proprietary Information that
is embodied in a tangible medium of expression.
7. Modification. This Agreement may not be changed, modified, released,
discharged, abandoned, or otherwise amended, in whole or part, except by an
instrument in writing, signed by myself and the Company. I agree that any
subsequent change or changes in my duties, salary, or compensation shall
not affect the validity or scope of this Agreement.
8. Entire Agreement. I acknowledge receipt of this Agreement and agree that
with respect to the subject matter hereof it is my entire agreement with
the Company, superseding any previous oral or written communications,
representations, understandings, or agreements with the Company or any
officer or representative.
9. Severability. In the event that any paragraph or provision of this
Agreement shall be held to be illegal or unenforceable, such paragraph or
provision shall be severed from this Agreement and the entire Agreement
shall not fail on account thereof, but shall otherwise remain in full force
and effect.
10. Successor and Assigns. This Agreement shall be binding upon my heirs,
executors, administrators, or other legal representatives and is for the
benefit of the Company, its successors, and assigns.
11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.
12. Counterparts. This Agreement may be signed in two counterparts, each of
which shall be deemed an original and both of which shall together
constitute one agreement.
13. I agree that the Company may make known to others either during or
subsequent to my employment the existence of this Agreement and the
provisions of all or any part thereof.
IN WITNESS WHEREOF, THIS AGREEMENT has been executed as of this 11th day of
June, 1997 and is effective from February 7, 1997.
By: /s/ B.R. Xxxxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Chairman and Chief Executive Officer
ACCEPTED AND AGREED TO:
EXIGENT INTERNATIONAL, INC.
By: /s/ Xxx X. Xxxxxxx, Xx.
-------------------------------------
Title: CFO
Exhibit A
To
Proprietary Information and
Inventions Agreement
Exigent International, Inc.
0000 Xxxxx Xxxx
Xxxxxxxxx, XX 00000
Gentlemen:
1. The following is a complete list of all inventions or improvements
relevant to the subject matter of my employment by Exigent
International, Inc. (the "Company") that have been made or conceived
or first reduced to practice by me alone or jointly with others prior
to my engagement by the Company:
_____ No inventions or improvements
_____ See below:
_____ Additional sheets attached.
2. I propose to bring to my employment the following devices, materials,
and documents of a former employer that are not generally available to
the public, which materials and documents may be used in my employment
pursuant to the express written authorization of my former employer (a
copy of which is attached hereto):
______ No materials
______ See below:
______ Additional sheets attached.
Very truly yours,
-------------------------
Xxxxxxx X. Xxxxxxx
EXHIBIT D
NON-DISCLOSURE AND
NON-COMPETITION AGREEMENT
THIS NON-DISCLOSURE AND NON-COMPETITION AGREEMENT dated June 11, 1997 is between
EXIGENT INTERNATIONAL, INC., with its principal office at 0000 Xxxxx Xxxx,
Xxxxxxxxx, Xxxxxxx 00000 (the "Company") and Xxx X. Xxxxxxx, Xx., with a
residence at 000 Xx Xxxxx Xxxxxx, Xxxxxxxxx Xxxxx, XX 00000 ("Employee").
1. CONSIDERATION. Employee has agreed to enter into this Agreement in
consideration of: the Company's engagement of Employee as an employee
under the terms of the Employment Agreement ("Employment Agreement")
of even date between the Company and Employee; the Company's agreement
to grant stock options to Employee under its Incentive Stock Option
Plan of even date between the Company and Employee.
2. NON-DISCLOSURE OBLIGATIONS.
(a) In Employee's position as Exigent Chief Financial Officer of the
Company, he will have access to:
(i) information ("Confidential Business Information") relating
to the business plans of the Company and treated as
confidential, including without limitation, information
relating to the Company's investors, capitalization,
marketing plans and strategies, product concepts, product
development status, material agreements, plans for raising
capital, target customers and markets, pricing policies,
finances, financial information of the Company, customer
lists; and
(ii) information of a proprietary nature relating to the
technology and products of the Company ("Confidential
Proprietary Information") including without limitation,
information relating to the technology developed or to be
developed by the Company relating to the Company's products
and other matters, trade secrets, research and development
activities, technical, engineering and scientific data,
specifications, and patent applications or patents.
(The Confidential Business Information and Confidential
Proprietary Information is sometimes collectively referred
to herein as "Confidential Information") or confidential
information relating to the organization, research and
development activities, marketing plans and strategies,
pricing policies, technical and scientific data,
specifications, patent applications or patents, customer
lists and accounts, business, finances or financial
information of the Company.
(b) Employee agrees that he will not at any time during (i) his
employment by the Company and during any time period he is
receiving severance pay from the Company, including extended
periods under Section 4(f) herein, and (ii) for one year
thereafter, reveal to any person, association or company any of
the Company's Confidential Business Information, so far as such
Confidential Business Information has come or may come to his
knowledge, except as may be required in the ordinary course of
performing his duties as an officer of the Company or as may be
in the public domain through no fault of Employee or as may be
required by law.
(c) Employee hereby agrees that he will not at any time, whether
during or after the termination of his employment, reveal to any
person, association or company any of the Company's Confidential
Proprietary Information, so far as to his knowledge, except as
may be required in the ordinary course of performing his duties
as an officer of the Company or as may be in the public domain
through no fault of Employee or as may be required by law.
(d) Employee agrees to keep in confidence and secret all matters of
such nature entrusted to him and he shall not use or attempt to
use any such information in any manner which may injure or cause
loss to the Company, whether directly or indirectly.
(e) Employee acknowledges the critical importance of the Confidential
Information to the Company's business operations and plans.
Employee acknowledges that unauthorized disclosure or use of any
of the Confidential Information (in particular trade secrets and
technical proprietary information) would cause significant and
irreparable damage to the Company and would jeopardize the
Company's business and financial condition.
(f) Nothing herein shall be construed as granting to Employee any
right or license under any copyrights, inventions, or patents now
or hereafter owned or controlled by the Company or any right to
employment by the Company.
(g) In the event Employee's employment is terminated for any reason,
Employee shall return all Confidential Information in his
possession, together with any copies, to the Company.
3. NON-COMPETITION. Employee agrees and acknowledges that the products
and services to be sold and rendered by the Company are different in
character and are of particular significance to the Company, and that
the Company is in a competitive business. Due to the proprietary and
specialized nature of the Company's business, Employee agrees to the
following:
(a) During his employment and thereafter during the applicable
"Non-Competition Period" (as defined in Section 3(e)) Employee
shall not, directly or indirectly, induce, influence, combine or
conspire with, or attempt to induce, influence, combine or
conspire with, any of the officers, employees or consultants of
the Company to terminate their employment or relationship with
the Company.
(b) During his employment and thereafter during the applicable
"Non-Competition Period" (as defined in Section 3(e)), Employee
shall not, directly or indirectly, induce, or attempt to induce,
any of the customers or suppliers of the Company to terminate
their relationship with the Company.
(c) During his employment and thereafter during the applicable
"Non-Competition Period (as defined in Section 3(e)), Employee
agrees that he will not voluntarily or involuntarily, for any
reason whatsoever, directly or indirectly, individually or on
behalf of persons not now parties to this Agreement, or as a
partner, stockholder, director, officer, principal, agent,
broker, licensor, employee, or in any other capacity or
relationship, engage in any business or employment, or aid or
endeavor to assist any business or legal entity, which is in
competition with the products and/or services of the Company;
provided, however, this Section 3(c) shall not be deemed to
prevent Employee from working after termination of the applicable
Non-Competition Period in any areas or division within the
applicable industry. The ownership by Employee of not more than
five percent (5%) of shares of stock of any corporation having a
class or equity securities actively traded on a national
securities exchange or NASDAQ shall not be deemed, in and of
itself, to violate this Section 3(c ) .
(d) Employee agrees not to do or say anything that reasonably may be
expected to have the effect of disparaging the Company or
diminishing or impairing the goodwill and reputation of the
Company and the services it provides. Likewise, the Company
agrees not to do or say anything that reasonably may be expected
to have the effect of disparaging the Employee or diminishing or
impairing the reputation of the Employee.
(e) If, in any judicial proceedings a court shall refuse to enforce
any of the other separate covenants set forth in this Section 3,
then such unenforceable covenant shall be amended to relate to
such lesser period or geographical areas as shall be enforceable
or, if deemed appropriate by such court, deemed eliminated from
these provisions for the purpose of those proceedings to the
extent necessary to permit the remaining separate covenants to be
enforced.
(f) Under the terms of the Employment Agreement, Employee is entitled
to receive severance pay in the event his employment is
terminated by the Company without due cause. In the event
Employee's employment is terminated for any reason whatsoever,
(i) during the first year of his employment, then the applicable
Non-Competition Period for Section 3(a), (b) and (c) will be
eighteen (18) months; or
(ii) during the second year of his employment, then the
applicable Non-Competition Period for Section 3(a), (b) and
(c) will be twelve (12) months; or
(iii)during the third year of his employment, then the
applicable Non-Competition Period for Section 3(a), (b) and
(c) will be six (6) months; or
(iv) by expiration of the Term or otherwise, at any time after
the third anniversary of his employment, then the applicable
Non-Competition Period for Sections 3(a), (b) and (c) will
be three (3) months.
(g) Notwithstanding the foregoing, the Company may, at its option,
elect to extend the applicable Non-Competition Period by up to
twelve (12) additional months by payment to Employee of
additional severance pay equal to his salary in effect at the
date of termination of his employment for such time period.
Payments will be made in accordance with the Company's normal pay
periods for as long as the Company elects to so extend the
Non-Competition Period. Employee hereby agrees to accept such
payments as compensation for such extension of the applicable
Non-Competition Period.
(h) Company and Employee hereby acknowledge that:
(i) Company's market for its products is unlimited
geographically and the foregoing noncompetition and
non-solicitation requirements shall be applied on a
worldwide basis;
(ii) the duration and geographical limitations imposed with
respect to said noncompetition and non-solicitation
requirements are reasonable;
(iii)the restrictions stated hereinabove are reasonably
necessary for the protection of Company's legitimate
proprietary interests.
(i) Employee represents and warrants that his/her experience and
capabilities are such that the restrictive covenants set forth
herein will not prevent him/her from earning his/her livelihood
and that Employee will be fully able to earn an adequate
livelihood for himself/herself and his/her dependents if any such
provisions should be specifically enforced against Employee.
(j) The non-competition and non-solicitation obligations contained
herein shall be extended by the length of time during which
Employee shall have been in breach of any said provisions and
during any time the Company is required to seek compliance by
judicial proceeding.
4. SPECIFIC REMEDIES. In addition to any other remedy provided herein or
contemplated under law, and not as liquidated damages, in the even Employee
breaches any material covenant of this Agreement, such breach will
constitute "due cause" for termination of his employment under the
Employment Agreement and the Company shall have the right, but not the
obligation, to purchase from Employee and Employee shall have the
obligation to sell to the Company any or all of the shares of Common Stock
of the Company at a purchase price equal to Employee's cost for such
shares. Such right shall be exercised by written notice to Employee within
sixty (60) days of establishment by consent, judicial decision or
arbitration that Employee so breached this Agreement. Any of Employee's
permitted transferees will be obligated to sell to the Company Common Stock
shares of the Company held by them in the event the Company exercises this
right to purchase.
5. NOTICES. Any notice required or permitted hereunder shall be in writing and
shall be sufficiently given if personally delivered, delivered by facsimile
telephone transmission, delivered by express delivery service (such as
Federal Express), or mailed first class U.S. mail, postage prepaid,
addressed as follows:
If to Employee:
Xxx X. Xxxxxxx, Xx.
000 Xx Xxxxx Xxxxxx
Xxxxxxxxx Xxxxx, XX 00000
If to the Company:
Exigent International, Inc.
0000 Xxxxx Xxxx
Xxxxxxxxx, XX 00000
Attn: Legal Counsel
(or such other address as any party shall specify by written notice so
given), and shall be deemed to have been delivered as of the date so
delivered or three (3) days after mailing for domestic mail and seven (7)
days for international mail.
6. BINDING EFFECT; BENEFITS. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors
and assigns. Notwithstanding anything contained in this Agreement to the
contrary, nothing in the Agreement, expressed or implied, is intended to
confer on any person other than the parties hereto or their respective
heirs, successors, executors, administrators or assigns any right,
remedies, obligations or liabilities under or by reason of this Agreement.
7. ENTIRE AGREEMENT. This Agreement constitutes the final written expression
of all the agreements between the parties with respect to the subject
matter hereof. No addition to or modification of any provision of this
Agreement shall be binding upon any party unless made in writing and signed
by the party to be bound.
8. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Florida, without
reference to principles of conflict of laws.
9. HEADINGS. Headings of the Sections of this Agreement are for the
convenience of the parties only, and shall be given no substantive or
interpretive effect whatsoever.
10. NO CONFLICT. Employee represents and warrants that performance of the terms
of this Agreement, including but not limited to Sections 2 and 3 hereof, to
the best of his actual knowledge will not breach any agreement entered into
by Employee, and Employee agrees that he will not enter into any agreement
in conflict herewith. Employee further covenants that
(a) he shall not in the performance of his duties under the Employment
Agreement or hereunder (and the performance of such duties shall not
require him to) utilize any proprietary or confidential information
owned by any third party which he is prohibited from utilizing by
reason of agreement or applicable law, and
(b) he shall not at any time disclose to the Company any proprietary or
confidential information owned by any third party which he is
prohibited from disclosing by reason of agreement or applicable law.
11. SPECIFIC PERFORMANCE. Employee acknowledges and agrees that a breach of his
obligations under this Agreement, including but not limited to Section 2
and 3, will result in irreparable and continuing harm to the Company, for
which there will be no adequate remedy at law (it being understood and
agreed that the Company's remedy under Section 4 herein is not exclusive or
adequate), and agrees that in the event of any breach of this Agreement the
Company, its successors and assigns shall be entitled to injunctive relief
without the necessity of posting bond or other security therefor and
without the necessity of proving irreparable harm, and to such other and
further relief as may be proper.
12. SEVERABLILITY. If for any reason whatsoever, any one or more of the
provisions of this Agreement shall be held or deemed to be inoperative,
unenforceable or invalid as applied to any particular case in all cases,
such circumstances shall not have the effect of rendering such provision
invalid in any other case or of rendering any of the other provisions of
this Agreement inoperative, unenforceable or invalid.
13. ASSIGNABILITY. Employee may not assign any of his rights or obligations
hereunder without the prior written consent of the Company, which may be
withheld in its sole discretion.
14. WAIVER. The failure or delay of the Company at any time to require
performance by Employee of any provision of this Agreement, even if known,
shall not affect the right of the Company to require performance of that
provision or to exercise any right, power or remedy hereunder, and any
waiver by the Company of any breach of any provision of this Agreement
should not be construed as a waiver of any continuing or succeeding breach
of such provision, a waiver of the provision itself, or a waiver of any
right, power or remedy under this Agreement. No notice to or demand on
Employee in any case shall, of itself, entitle Employee to any other or
further notice or demand in similar or other circumstances.
IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
on the date written above.
EXIGENT INTERNATIONAL, INC.
/S/ B.R. XXXXXXX
-----------------------------------
Name: B.R. XXXXXXX
Title: CEO
/S/ XXX X. XXXXXXX, XX.
-----------------------------------
Name: Xxx X. Xxxxxxx, Xx.
Title: Exigent Chief Financial Officer
Exhibit E
CONFIDENTIAL NATURE OF COMPANY AFFAIRS
PURPOSE:
It is the policy of Exigent International Inc. (Exigent) that the internal
business affairs of the organization, particularly confidential information and
trade secrets, represent proprietary assets that each employee has a continuing
obligation to protect.
POLICY:
1. CONFIDENTIAL INFORMATION. Information designated as confidential is to be
discussed with no one outside the organization and only discussed within
the organization on a "need to know" basis. In addition, employees have a
responsibility to avoid unnecessary disclosure of nonconfidential internal
information about Exigent, its customers, and its suppliers. This
responsibility is not intended to impede normal business communications and
relationships, but is intended to alert employees to their obligations to
use discretion to safeguard internal Exigent affairs.
2. VIOLATION OF UNAUTHORIZED ACCESS. Employees authorized to have access to
confidential information must treat the information as proprietary Exigent
property for which they are personally responsible. Employees are
prohibited from attempting to obtain confidential information for which
they have not received authorization. Employees violating this policy will
be subject to discipline, up to and including termination and may be
subject to legal action.
3. MEDIA/INQUIRIES. All media inquiries and other inquiries of a general
nature should be referred to the President or CEO. Also, all press
releases, publications, speeches, and other official declarations must be
approved in advance by the President. Inquiries seeking information
concerning current or former employees should be referred to the Personnel
Department.
4. DISCUSSIONS WITH COMPETING COMPANIES AND EXIGENT CONFIDENTIALITY. Employees
are not to discuss with the officers, directors, or employees of competing
companies any topics which might give the impression of an illegal
agreement in restraint of trade. Such topics include pricing agreements,
customer allocation, and division of sales territories.
5. MATERIAL INSIDE INFORMATION. Employees are prohibited from disclosing
"material inside" information, that could affect the market value of
Exigent's financial securities, to anyone outside the organization until
such information has been made available to the public by management.
Employees are also prohibited from using such information for their own
personal profit.
I, XXX X. XXXXXXX, XX., hereby acknowledge I have read and fully understand the
(Print Name)
above policy and agree to comply with all terms, conditions and/or requirements
as stated.
/S/ XXX X. XXXXXXX, XX. JUNE 11, 1997
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Employee Signature Date
A M E N D M E N T T O E M P L O Y M E N T A G R E E M E N T
This amendment ("Amendment") to the Employment Agreement ("Agreement") executed
between Exigent International, Inc. and Xxx X. Xxxxxxx dated 11 June 1997 is
entered into as of September 15, 1997 between Exigent International, Inc.
("Exigent"), a corporation duly authorized and existing under the laws of the
State of Delaware with a principal place of business at 0000 Xxxxx Xxxx,
Xxxxxxxxx, Xxxxxxx 00000 and Xxx X. Xxxxxxx ("Employee"), an individual
domiciled at 000 Xx Xxxxx Xxxxxx, Xxxxxxxxx Xxxxx, XX 00000.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby mutually acknowledged, Exigent and Employee hereby agree as
follows:
1. PARAGRAPH 3(D)(II) MODIFICATION; PARAGRAPH 3(D)(III) DELETED. That
paragraph 3(d)(ii) is amended to read as follows and incorporates language
from paragraph 3(d)(iii) which is now deleted: "Group medical, dental,
life, AD&D, supplemental life, long term disability, or short term
disability insurance, or other insurance of the kind and to the extent
offered from time to time during the Term of this Agreement to other
employees of the Company."
2. EXHIBIT "B" TO EMPLOYMENT AGREEMENT. The document attached hereto as
EXHIBIT "B" TO EMPLOYMENT AGREEMENT and all related attachments containing
the duties and responsibilities of Employee is hereby incorporated into the
Agreement as if fully set forth therein.
3. RATIFICATION AND APPROVAL. In all other respects the Agreement is hereby
ratified by Exigent and Employee and remains in full force and effect.
IN WITNESS WHEREOF, this Amendment has been duly executed as of the date set
forth above.
For Exigent: For Employee:
EXIGENT INTERNATIONAL, INC. XXX X. XXXXXXX, AN INDIVIDUAL
By: /S/ B.R. XXXXXXX By:/S/ XXX X. XXXXXXX, XX.
---------------------------------- ---------------------------
(Signature) (Signature)
Name: B.R. XXXXXXX
(Print - Block Letters)
Title: CEO & CHAIRMAN
(Print - Block Letters)
