Employment Agreement
Exhibit 10.1
Agreement effective January 1, 2001, between MapInfo Corporation, Xxx Xxxxxx Xxxx, Xxxx, Xxx Xxxx 00000 ("MapInfo" or "Company"), and XXXX X. XXXXXXX, residing at 00 Xxxx Xxxxx Xxxx, Xxxxxxxxxxx, XX 00000 ("Cattini").
1.0 EMPLOYMENT AND TERM
1.1 MapInfo agrees to employ Cattini as President and Chief Executive Officer of the Company for a period of three years from January 1, 2001 to December 31st, 2003 (the "Contract Expiration Date").
1.2 Cattini agrees to aid in managing the operations of MapInfo under the supervision of the Board of Directors of MapInfo, to serve as a member of the MapInfo Board of Directors, to perform such other services as shall from time to time be assigned to him by the Board of Directors, and to diligently and competently devote his entire business time, skill and attention to such services.
2.0 COMPENSATION AND BENEFITS
2.1 The Company shall pay to Cattini a salary of not less than $ 250,00.00 per annum (retroactive to 10/01/00), in accordance with the standard payroll practices of the Company. Cattini's annual salary may be increased from time to time in accordance with the normal business practices of the Company.
2.2 The Company shall reimburse Cattini for all reasonable out-of-pocket expenses incurred in connection with the performance of his duties hereunder, payable in accordance with the standard expense account procedures of MapInfo.
2.3 Cattini shall be entitled to participate on the same basis, subject to the same qualifications, as other employees of the Company in any disability, pension, life insurance, health insurance, hospitalization and other fringe benefit plans in effect with respect to other employees of the Company, in accordance with the written terms of said plans which shall be controlling.
2.4 The Company shall pay all expenses of an annual physical for Cattini, to the extent such expenses are not covered by the Company's existing health insurance plan. The income tax implications of all of this compensation shall be the responsibility of Cattini.
2.5 In addition to his salary, effective 10/01/00, each year while he is employed Cattini will be eligible to earn incentive compensation in amounts to be determined by the Compensation Committee of the Board of Directors based on the Company's and Cattini's performance during each fiscal year ad follows:
2.5.1 an additional one-half of Cattini's annual base salary may be earned, payable quarterly, for achieving targeted Company objectives, and additional compensation may be earned, for achieving above targeted objectives, payable forty-five (45) days after the end of the fiscal year; and
2.5.2 Cattini's annual incentive compensation target may be increased from time to time in accordance with the normal business practices of the Company.
2.6 Also in addition to his salary, Cattini shall be granted Seventy five thousand (75,000) non-qualified stock options under the MapInfo 1993 Stock Incentive Plan (the "Plan") in accordance with the provisions of the Plan, a copy of which has been received by Cattini.
2.6.1 the exercise price of the options set at the fair market value of MapInfo Common Stock on such date that Cattini executes this agreement.
2.7 For termination other than cause, Cattini shall be provided reimbursement up to One-Hundred Fifty Thousand Dollars ($150,000) for the following receipted expenses:
2.7.1 Sale and move from Loudonville home: realtor fee and other customary closing costs, any loss on difference between purchase price and sale price, packing and shipping of all personal property from New York to the United Kingdom; and
2.7.2 Air transportation from New York to United Kingdom for Cattini, wife and children.
2.8 The company shall reimburse Cattini for the cost related to joining the Xxxxxxxx Xxxxxxx Country Club (approximately $10,000.00 one time fee), or a like Club in the surrounding Capital District area. All monthly costs for dues shall be paid by Cattini.
3.0 INTELLECTUAL PROPERTY, CONFIDENTIAL INFORMATION AND NON-COMPETITION
Cattini reaffirms his previously executed attached Employee Intellectual Property, Confidential Information and Non-Competition Agreement.
4.0 IRREPARABLE INJURY
4.1 Both parties hereto recognize that the services to be rendered by Cattini during the term of his employment are special, unique and of extraordinary character, and Cattini acknowledges that any violation by him of Section 3 of this Agreement may cause the Company irreparable injury.
4.2 In the event of a breach or threatened breach by Cattini of the provisions of said Section 3, MapInfo shall be entitled to an injunction restraining Cattini from violating the terms thereof, and from providing any confidential information to any person, firm, corporation, association or other entity, whether or not Cattini is then employed by, or an officer, director, or owner thereof.
4.3 Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including recovery of damages from Cattini.
5.0 EARLY TERMINATION
Definitions for purposes of this Agreement:
"Cause" shall be defined and limited to (i) the willful and continued failure by Cattini to substantially perform his duties hereunder (other than any such failure resulting from Cattini's incapacity due to physical or mental illness), or (ii) conviction for any crime other than simple offenses or traffic offenses; (iii) breach of Cattini's fiduciary responsibilities to the Company; (iv) conduct reflecting moral turpitude; (v) commission of fraud or gross misconduct in Cattini's dealings with or on behalf of the Company; (vi) breach of any duty of confidentiality owned the Company.
"Change in Control of the Company" shall mean an acquisition (directly or indirectly) resulting in more than 50% of the Company's voting stock or assets being acquired by one or more entities that thereby gain management control of the Company. This section shall govern in case of any conflict between the wording of this Agreement and the wording of the plan under which any options were granted to Cattini.
"Good Reason" shall mean a failure by the Company to comply with any material provision of this Agreement which has not been cured within ten (10) days after Cattini has given written notice of such noncompliance to the Company.
"Notice of Termination" shall mean a written notice to the other party that Cattini is terminating or to be terminated for one of the reasons set forth in this Agreement.
5.1 Cattini's employment hereunder may be terminated prior to the Contract Expiration Date only under any one of the following circumstances:
5.1.1 the death of Cattini;
5.1.2 a mental, physical or other disability or condition of Cattini which renders him incapable of performing his obligations under this Agreement for a period of three (3 consecutive months;
5.1.3 by Cattini for either (i)Good Reason or (ii)a Change in Control of the Company;
5.1.4 by the Company for Cause.
5.2 Any termination of Cattini's employment by the Company or by Cattini shall be communicated by written Notice of Termination to the other party hereto.
5.3 "Date of Termination" shall mean:
5.3.1 if Cattini's employment is terminated by his death, the date of his death;
5.3.2 if Cattini's employment is terminated by reason of the event specified in subsection 5.1.2. above, thirty (30) days after Notice of Termination is given (provided that Cattini shall not have returned to the performance of his duties on a full-time basis during such thirty (30) day period);
5.3.3 if Cattini's employment is terminated for Cause pursuant to subsection 5.1.4. above, the date the Notice of Termination is given or later if so specified in such Notice of Termination; and
5.3.4 if Cattini's employment is terminated for any other reason, the date on which a Notice of Termination is given.
5.4 If within thirty (30) days after any Notice of Termination is given the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the termination, the Date of Termination shall be the date fixed, either by arbitration award or by a final judgment, order or decree of a court of competent jurisdiction.
6.0 COMPENSATION UPON EARLY TEMINATION OR DISABILITY.
6.1 During any period that Cattini fails to perform his duties hereunder as a result of incapacity due to physical or mental illness ("disability period"), he shall continue to receive his full salary at the rate then in effect for such period until his employment is terminated pursuant to section 5.1.2 above, provided that payments so made to Cattini during the disability period shall be reduced by the sum of the amounts, if any, payable to Cattini at or prior to the time of any such payment under disability benefit plans of the Company, and which were not previously applied to reduce any such payment.
6.2. If Cattini's employment is terminated by his death, the Company shall have no further payment obligations to Cattini other than those arising from his employment prior to his death.
6.3 If Cattini's employment shall be terminated for Cause, the Company shall pay Cattini his full salary through the Date of Termination at the rate in effect at the time Notice of Termination is given, and any incentive compensation earned under Section 2.5 through the Date of Termination, and the Company shall have no further obligations to Cattini under this Agreement.
6.4 If Cattini shall terminate his employment by resigning for other than Good Reason, the Company shall pay Cattini his full salary through the Date of Termination at that rate in effect at the Notice of Termination is given, and any incentive compensation earned under Section 2.5 as of the Date of Termination.
6.5 If Cattini's employment shall be terminated by MapInfo for reasons other than pursuant to Sections 5.1.2, 5.1.3 or 5.1.4 hereof or if Cattini shall terminate his employment for Good Reason, then
6.5.1 the Company shall pay to Cattini, in a lump sum at the option of Cattini and then within fourteen (14) days following the Date of Termination, his full base salary due to the end of the contract period (December 31, 2003), at the rate in effect at the time Notice of Termination is given, but in any event not less than one full year of salary regardless of the remaining number of months under this Agreement, together with any incentive compensation earned under Section 2.1.5 as of the Date of Termination; and
6.5.2 the Company shall continue Cattini's health and dental insurance coverage for the one year period following the Date of Termination on the same terms as provided to other MapInfo employees.
6.5.3 Provision of the above severance payments and benefits shall be contingent upon Cattini's execution of a general release of the company which is prepared by the company.
6.6 Upon any Change in Control of the Company, where Cattini is not the surviving CEO, or is offered a position not equivalent to his present position, then, at his option, his employment shall terminate, and:
6.6.1 Cattini shall be paid a sum equal to an average of his previous one (1) year base salary and bonuses paid by the Company, looking back one (1) year from the last day of employment with the Company; and
6.6.2 the Company shall continue, for a period of one year, to pay for Cattini's insurance, health, life and any other existing fringe benefits, or provide equivalents thereof.
6.6.3 Provision of the above severance payments and benefits shall be contingent upon Cattini's execution of a general release of the company which is prepared by the company.
6.7 Upon any Change in Control of the Company, all unexpired and unvested options of Cattini to purchase common stock of the Company shall become exercisable immediately as of the date of such Change in Control, for such period of time and upon such terms as are provided in the Plan under which the options were granted.
7.0 NOTICES
All communications and notices hereunder shall be in writing and either personally delivered or mailed to the party at the address set forth above. Notices to MapInfo shall be addressed to the attention of the Chairman with a copy to the Executive Vice President/CFO.
8.0 ENTIRE AGREEMENT, NO WAIVER
This Agreement and the agreements and exhibits referred to herein constitute the entire understanding between that parties and supersede all prior agreements or understandings between the parties except as to matters that have may be ongoing. No waiver or modification of the terms hereof shall be valid unless in writing signed by both parties hereto and only to the extent therein set forth.
9.0 SUCCESSORS.
9.1 The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to Cattini, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company (or any successor to its business and/or assets) to obtain such agreement prior to the effectiveness of any such succession shall, at Cattini's option to treat it as such, be a breach of this Agreement, except that for the purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination.
9.2 This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, administrators, executors, personal representatives, successors and assigns; provided, however, that except as provided in this Section 9, this Agreement may not be assigned by either of the parties hereto. If Cattini should die while any amounts would still be payable to him, all such amounts earned, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Cattini's designee or, if there be no such designee, to Cattini's estate.
10.0 ARBITRATION
10.1 Except as otherwise provided in Section 4.0 above, any dispute or claim relating to or arising out of the employment of the Company, whether based on contract or tort or otherwise, but not including statutory claims, shall be subject to final and binding arbitration in the State of New York in accordance with the applicable commercial arbitration rules of the American Arbitration Association in effect at the time the claim or dispute arose.
10.2 The arbitrators shall have jurisdiction to determine any such claim, and may grant any relief authorized by law for such claim with their decision based on and supported by written findings of fact and conclusions of law.
10.3. Any claim or dispute subject to arbitration shall be deemed waived, and shall be forever barred, if arbitration is not initiated within twelve (12) months of the date the claim or dispute first arose.
11.0 GOVERNING LAW AND FORUM.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to the choice of law provisions thereof, and the parties herein consent to the exclusive jurisdiction of the New York State Supreme Court County of Rensselaer, or the United States District Court for the Northern District of New York, as may be applicable.
IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date and year first written above.
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MAPINFO CORPORATION |
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BY: |
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Xxxx X. Xxxxxxx |
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Chairman of the Board |
