WEB.COM GROUP INC. AMENDED AND RESTATED EMPLOYMENT AGREEMENT
Exhibit
10.3
XXX.XXX
GROUP INC.
AMENDED
AND RESTATED
This
Amended and Restated Employment Agreement (“Agreement”)
is entered by and between Xxxxx Xxxxxx (“Executive”)
and Xxx.xxx
Group, Inc. (the “Company”,
formerly known as Website Pros, Inc.), a Delaware corporation on December 11,
2008 (the “Effective
Date”).
Whereas,
Executive has been providing services to the Company under the terms of an
Employment Agreement effective as of the initial public offering of the
Company’s common stock pursuant to a registration statement on Form S-1 (the
“Existing
Agreement”); and
Whereas,
in connection with certain changes to Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”),
the Company and Executive wish to amend and restate the Existing Agreement as
set forth herein.
Now,
Therefore, in consideration of the mutual promises and covenants
contained herein, it is hereby agreed by and between the parties hereto as
follows, effective as of the Effective Date:
1. Employment
by the Company.
1.1 Amendment and Restatement of Existing
Agreement. The Existing Agreement is hereby amended and
restated in its entirety.
1.2 Title and
Responsibilities. Subject to the terms set forth herein,
Executive will continue to be employed as the Company’s Chief Financial
Officer. During his employment with the Company, Executive will
devote his best efforts and substantially all of his business time and attention
(except for vacation periods and reasonable periods of illness or other
incapacity permitted by the Company’s general employment policies) to the
business of the Company. Notwithstanding the foregoing, it is
acknowledged and agreed that Executive shall be permitted to perform his duties
and responsibilities as a principal of Atlantic Partners and may engage in civic
and not-for-profit activities; provided, in each case that
such activities do not materially interfere with the performance of his duties
hereunder.
1.3 Executive
Position. Executive will serve in an executive capacity and
shall report to the Company’s Chief Executive Officer. Executive shall perform
the duties of his executive position as required by the Chief Executive Officer
and the Company's Board of Directors (the “Board”).
1.4 At-Will
Employment. Executive’s relationship with the Company is
at-will. The Company shall have the right to terminate this Agreement
and Executive’s employment with the Company at any time with or without Cause
(as defined in Section 4.1(a)), and with or without advance
notice. In addition, the Company retains the discretion to modify the
terms of Executive’s employment, including but not limited to position, duties,
reporting relationship, office location, compensation, and benefits, at any
time. Executive’s at-will employment relationship may only be changed
in a written agreement approved by the Board and signed by Executive and a
member of the Board or a duly authorized officer of the
Company. Executive also may be removed from any position he holds in
the manner specified by the Bylaws of the Company and applicable
law.
1.5 Company Employment
Policies. The employment relationship between the parties
shall continue to be governed by the general employment policies and procedures
of the Company, including those relating to the protection of confidential
information and assignment of inventions, except that when the terms of this
Agreement differ from or are in conflict with the Company’s general employment
policies or procedures, this Agreement shall control.
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2.
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Compensation.
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2.1 Salary. Executive
shall receive for services to be rendered hereunder a base salary at an
annualized rate of $245,000, payable on the Company’s standard payroll
dates. Executive will be considered for annual increases in base
salary in accordance with Company policy and subject to review and approval by
the Compensation Committee of the Board (the “Committee”).
2.2 Equity
Awards. Except as set forth below, Executive’s current
compensatory equity awards are not affected by this Agreement and will remain in
effect in accordance with the terms of the applicable award agreements and stock
plan(s). The parties agree that the Company will not provide
Executive with any additional or new stock awards in connection with his
entering into this Agreement.
2.3 Target
Bonus. Subject to annual review by the Committee, Executive
shall be eligible to earn a target annual bonus of up to sixty-five percent
(65%) of Executive’s base salary (such actual target amount, which may be more
or less than 65%, as determined in the sole discretion of the Committee, the
“Target
Bonus”). Whether
Executive earns a Target Bonus, and if so, in what amount, shall be determined
solely by the Company in its discretion. Executive must remain an
active employee through the time the Compensation Committee of the Board
determines bonus amounts for executives of the Company in order to earn any
bonus. Executive will not earn any bonus if his employment terminates
for any reason before the Compensation Committee of the Board has determined
Executive’s bonus, except as expressly set forth herein. No prorated
bonus can be earned.
2.4 Standard Company
Benefits. Executive shall be entitled to participate in the
Company’s employee benefits and compensation plans which may be in effect from
time to time and provided by the Company to its executives, under the terms and
conditions of such benefit and compensation plans.
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2.5 Executive Severance Benefit
Plan. Executive acknowledges and agrees that he is not an
“Eligible Employee” under the Company’s Executive Severance Benefit
Plan. Upon a termination of employment, Executive’s rights to receive
any severance pay or post-termination benefit continuation will be only as set
forth in this Agreement and as otherwise required by applicable
law.
3. Confidential
Information. As a condition of his continued employment,
Executive must continue to comply with the Proprietary Information and
Inventions Agreement (the “Confidential
Information Agreement”) he has executed previously. Nothing in
this Agreement is intended to modify in any respect the Confidential Information
Agreement, and the Confidential Information Agreement shall remain in full force
and effect. In addition, Executive agrees that during his employment
with the Company, and in the two (2) year period immediately following the date
on which Executive ceases to be employed by the Company for any reason,
Executive will not, whether directly or indirectly, personally or through
others: (a) encourage, induce, attempt to induce, solicit or attempt to solicit
any employee of the Company or any of the Company’s subsidiaries to leave his or
her employment with the Company or any of the Company’s subsidiaries, (b)
encourage, induce, attempt to induce, solicit or attempt to solicit any customer
of the Company or any of the Company’s subsidiaries to reduce or terminate its
customer relationship with the Company, or (c) be or become an officer,
director, stockholder, owner, co-owner, affiliate, partner, promoter, employee,
agent, representative, designer, consultant, advisor, manager, licensor,
sublicensor, licensee or sublicensee of, for or to, or otherwise be or become
associated with or acquire or hold (of record, beneficially or otherwise) any
direct or indirect interest in, any entity that engages directly or indirectly
in competition with the Company; provided, however, that Executive may, without
violating this paragraph, provide services to a business division of a competing
entity if such business division does not compete with the Company and
Executive’s services to the competing entity are limited to such business
division, and provided further, that Executive may own, as a passive investor,
an equity interest of any competing entity, so long as Executive’s holdings in
such entity do not in the aggregate constitute more than 1% of the voting stock
of such entity. Executive acknowledges that, due to the nature of the
Company ’s business and the products and services provided by the Company, it is
possible to compete with the Company from any location within the world, and
Executive acknowledges and agrees that it is thus impossible to identify or
otherwise limit the geographic scope of this agreement and that it is reasonable
for the restrictions contained herein to apply on a worldwide
basis.
4. Termination
Of Employment; Change of Control
4.1 Termination
With or Without Cause.
(a) Definition of
Cause. For purposes of this Agreement, “Cause”
shall mean (i) conviction of any felony, or of any crime involving moral
turpitude or dishonesty; (ii) perpetration of a material fraud or act of
dishonesty against the Company; (iii) persistent, willful and material breach of
the Executive’s duties that has not been cured within thirty (30) days after
written notice from the Board or the Committee of such breach; or (iv) material
breach of this Agreement or the Confidential Information Agreement that has not
been cured within thirty (30) days after written notice from the Board or the
Committee, or has caused irreparable damage incapable of cure.
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(b) Termination for Cause. If the
Company terminates Executive’s employment at any time for Cause, Executive’s
salary shall cease on the date of termination, and Executive will not be
entitled to any Severance Benefits (as defined below), severance pay, pay in
lieu of notice or any other such compensation, or any accelerated vesting of any
equity awards, other than payment of accrued salary and such other accrued
benefits as expressly required in such event by applicable law or the terms of
any applicable Company benefit plans.
(c) Termination Without
Cause. If the Company terminates Executive’s employment at any
time without Cause (and other than as a result of Executive’s death or
disability) and such termination constitutes a “separation from service” (as
defined under Treasury Regulation Section 1.409A-1(h)), Executive shall be
eligible for the following severance benefits (the “Severance
Benefits”): (i) the Company shall make a lump sum severance
payment to Executive in an amount equal to twelve (12) months of Executive’s
then-current base salary plus 100% of the greater of (A) 80% of the Target Bonus
for the year in which the termination occurs and (B) the prior year’s Target
Bonus actually earned by Executive, subject to withholdings and deductions, (ii)
the vesting of each then-outstanding, unvested equity award held by Executive
will accelerate as to that number of shares under each such award that would
have vested in the ordinary course had Executive continued to be employed by the
Company for an additional twelve (12) months (or, if no shares would
vest during such time under a specific award due to a cliff vesting provision,
then the number of shares vesting and becoming exercisable pursuant to this
paragraph with respect to such award shall equal the product of (A) the total
number of shares subject to the award and (B) a fraction, the numerator of which
is twelve (12) and the denominator of which is the total number of months in the
vesting schedule), with such vesting occurring as of the date of the Executive’s
termination (such vesting, the “12 Month Vesting”), (iii) the post-termination
exercise period of all non-statutory stock options then held by Executive shall
be extended so that such options, to the extent vested, are exercisable until
the earlier of (A) the original term expiration date for such award and (B) the
first anniversary of Executive’s termination date, and (iv) if Executive timely
elects COBRA health insurance coverage, the Company will reimburse Executive’s
COBRA premiums for twelve (12) months following the date his employment
terminates or until such earlier date as he is no longer eligible for COBRA
coverage or he becomes eligible for health insurance coverage from another
source (provided that Executive must promptly inform the Company, in writing, if
he becomes eligible for health insurance coverage from another source within
twelve (12) months after the termination). Executive shall
not be entitled to the Severance Benefits unless and until the release
requirements set forth in Section 5 of this Agreement are
satisfied.
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4.2 Resignation
With or Without Good Reason.
(a) Definition of Good
Reason. For purposes of this Agreement, a Resignation for
“Good
Reason” shall mean that Executive resigns from all positions he
then-holds with the Company and its affiliates if (i) (A) the Company makes a
material adverse change in the Executive’s position causing such position to be
of materially reduced stature or responsibility, (B) there is a material
reduction of the Executive’s base salary, (C) the Executive is required to
relocate his primary work location to a location that would increase Executive’s
one way commute distance by more than twenty (20) miles, or (D) the Company (or
any successor thereto) materially breaches the terms of this Agreement
(including but not limited to a material reduction in Target Bonus percentage,
provided that fluctuation in actual Target Bonus amounts earned and paid will
not constitute Good Reason), (ii) Executive provides written notice to the
Company’s General Counsel within the sixty (60) days immediately following such
material change or reduction, (iii) such material change or reduction is not
remedied by the Company within thirty (30) days following the Company’s receipt
of such written notice and (iv) Executive’s resignation is effective not later
than ninety (90) days after the expiration of such thirty (30) day cure
period.
(b) Executive’s
Resignation. Executive may resign from his employment with the
Company at any time, with or without advance notice, and with or without Good
Reason.
(c) Executive’s Resignation Without Good
Reason. In the event that Executive resigns his employment
without Good Reason, Executive will not be entitled to the Severance Benefits,
severance pay, pay in lieu of notice or any other such compensation, or any
accelerated vesting of equity awards, other than payment of accrued salary and
such other accrued benefits as expressly required in such event by applicable
law or the terms of any applicable Company benefit plans. Termination
of Executive’s employment due to Executive’s death or disability will be treated
as Executive’s resignation without Good Reason.
(d) Executive’s Resignation for Good
Reason. Executive may resign his employment for Good Reason at
any time so long as Executive tenders his resignation in writing to the Company
in accordance with the time frames set forth in Section 4.2(a) above. In the
event that Executive resigns his employment for Good Reason and such resignation
constitutes a “separation from service” (as defined above), Executive will be
eligible to receive the Severance Benefits if Executive satisfies the release
requirements set forth in Section 5 of this Agreement.
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4.3 Change
of Control.
(a) Definition of Change of
Control. For purposes of this Agreement, a “Change of
Control” shall mean any of the following: (i) a sale, lease or other
disposition in one transaction or a series of transactions, of all or
substantially all of the assets of the Company, (ii) a merger or consolidation
in which the Company is not the surviving entity or if the Company is the
surviving entity, as a result of which the shares of the Company’s capital stock
are converted into or exchanged for cash, securities of another entity, or other
property, unless (in any case) the holders of the Company’s outstanding shares
of capital stock immediately before such transaction own more than fifty percent
(50%) of the combined voting power of the outstanding securities of the
surviving entity immediately after the transaction, (iii) the Company’s
stockholders approve a plan or proposal to liquidate or dissolve the Company or
(iv) a person or group hereafter acquires beneficial ownership of more than
fifty percent (50%) of the outstanding voting securities of the Company (all
within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as
amended, and the regulations promulgated thereunder).
(b) Change
of Control Acceleration & Severance.
(i) Single
Trigger Vesting Acceleration.
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(1)
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If
the Company undergoes a Change of Control, then the vesting of each equity
award held by Executive immediately prior to such Change of Control
transaction shall accelerate as to 75% of his then-unvested shares subject
to each such award, effective as of immediately prior to the effective
time of such Change of Control.
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(2)
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Notwithstanding
the foregoing, in the event of a Change of Control in which either (A) the
acquiring or surviving entity does not agree to assume or otherwise
continue Executive’s outstanding equity awards, or (B) the acquiring or
surviving entity does assume or otherwise continue Executive’s outstanding
equity awards but such awards cease to cover shares of common stock that
are readily tradable on an established securities market, then 100% of the
shares subject to each then-outstanding unvested equity award held by
Executive shall become fully vested, and, as applicable, exercisable,
effective as of immediately prior to the effective time of such Change of
Control.
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(3)
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The
vesting provided under this Section 4.3(b)(i) is called the “Change of
Control Acceleration”.
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(4)
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In
the event of a termination of Executive’s employment on the effective date
of a Change of Control, the vesting in this Section 4.3(b)(i) shall apply
first and the vesting in Section 4.1(c) (as modified, if applicable by
Section 4.3(b)(ii)) shall apply
second.
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(ii) Executive’s Termination Without Cause
or Resignation For Good Reason Following a Change of
Control. If following the effective date of a Change of
Control either (x) the Company (or its successor) terminates Executive’s
employment without Cause (and other than as a result of Executive’s death or
disability), or (y) Executive resigns with Good Reason, and in either such case
such event constitutes a “separation from service”, then Executive shall be
eligible to receive the Severance Benefits if Executive satisfies the release
requirements set forth in Section 5 of this Agreement, provided, however, that
in lieu of the vesting acceleration described in Section 4.1(c)(ii), the vesting
of each then-outstanding, unvested equity award held by Executive will
accelerate as to the greater of (A) the 12 Month Vesting and (B) 75% of
Executive’s then-unvested shares.
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4.4 Cessation of Severance
Benefits. If Executive violates this Agreement or the
Confidential Information Agreement, then Executive’s eligibility for and
entitlement to receive the Severance Benefits, Change of Control Acceleration,
and all other benefits being provided to Executive by the Company
will cease immediately, and Executive will not be entitled to any further
compensation and benefits from the Company, the Company will have no further
obligation to provide any such compensation or benefits, and to the extent
Executive has already received Severance Benefits and/or Change in Control
Acceleration under this Agreement in connection with Executive’s termination,
all such benefits will be forfeited and Executive shall be required to
immediately return any cash payments made pursuant to such
benefits.
4.5 Application of Internal Revenue Code
Section 409A. If the Company (or, if applicable, the
successor entity thereto) determines that the Severance Benefits and/or any
other termination payments and benefits provided under this Agreement or
otherwise (the “Payments”)
constitute “deferred compensation” under Code Section 409A (together, with any
state law of similar effect, “Section
409A”) and Executive is a “specified employee” (as such term is defined
in Section 409A(a)(2)(B)(i)) of the Company or any successor entity thereto upon
his separation from service, then, solely to the extent necessary to avoid the
incurrence of the adverse personal tax consequences under Section 409A as a
result of the payment of compensation upon his “separation from service”, the
timing of the Payments shall be delayed as follows: on the earlier to
occur of (i) the date that is six months and one day after the date of the
“separation from service” or (ii) the date of Executive’s death (such earlier
date, the “Delayed Initial
Payment Date”), the Company (or the successor entity thereto, as
applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the
Payments that Executive would otherwise have received through the Delayed
Initial Payment Date (including reimbursement for any premiums paid by Executive
for health insurance coverage under COBRA) if the commencement of the payment of
the Payments had not been delayed pursuant to this Section 4.5 and (B) commence
paying the balance of the Payments in accordance with the applicable payment
schedules set forth above. It is intended that (i) each installment
of the Payments provided under this Agreement is a separate “payment” for
purposes of Section 409A, (ii) all of the Payments satisfy, to the greatest
extent possible, the exemptions from the application of Section 409A provided
under of Treasury Regulation 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9),
and this Agreement will be construed to the greatest extent possible as
consistent with those provisions.
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4.6 Certain
Offsets. The Company shall reduce Executive’s Severance
Benefits, in whole or in part, by any other severance benefits, pay in lieu of
notice, or other similar benefits payable to Executive by the Company that
become payable in connection with Executive’s termination of employment,
including but not limited to any payments that are owed pursuant to (i) any
applicable legal requirement, including, without limitation, the Worker
Adjustment and Retraining Notification Act (the “WARN
Act”), or (ii) any Company policy or practice providing for Executive to
remain on the payroll for a limited period of time after being given notice of
the termination of Executive’s employment. The termination payments
and benefits provided under this Agreement are intended to satisfy, in whole or
in part, any and all statutory obligations that may arise out of Executive’s
termination of employment. In the Company’s sole discretion, such
reductions may be applied on a retroactive basis, with severance benefits
previously paid being recharacterized as payments pursuant to the Company’s
statutory obligation. If Executive is indebted to the Company at his
or her termination date, the Company reserves the right to offset any severance
payments under the Plan by the amount of such indebtedness.
4.7 Excess
Parachute Payments.
(a) If
any payment or benefit (including payments and benefits pursuant to this
Agreement) that Executive has received in connection with an acquisition of
Executive’s previous employer, or would receive pursuant to this Agreement or
otherwise (collectively, the “Acquisition
Payments”) would (i) constitute a “parachute payment” within the meaning
of Section 280G of the Code, and (ii) but for this sentence, be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then such Acquisition Payments shall be equal to the Reduced
Amount. The “Reduced
Amount” shall be the largest portion of the Acquisition Payments that
would result in no portion of the Acquisition Payments being subject to the
Excise Tax. If a reduction in payments or benefits constituting the
Acquisition Payments is necessary so that the Acquisition Payments equal the
Reduced Amount, (A) Executive shall have no right to any portion of the
Acquisition Payments except those included in the Reduced Amount, and (B)
reduction shall occur in the following order: (1) reduction of cash payments;
(2) cancellation of accelerated vesting of equity awards other than stock
options; (3) cancellation of accelerated vesting of stock options; and (4)
reduction of other benefits paid to Executive. In the event that acceleration of
compensation from Executive’s equity awards is to be reduced, such acceleration
of vesting shall be canceled in the reverse order of the date of
grant.
(b) The
independent professional firm engaged by the Company for general tax audit
purposes as of the day prior to the effective date of the Change of Control
shall make all determinations required to be made under this Section
4.7. If the firm so engaged by the Company is serving as advisor for
the individual, entity or group effecting the Change of Control, the Company
shall appoint a nationally recognized independent professional firm to make the
determinations required hereunder. The Company shall bear all
expenses with respect to the determinations by such independent registered
public accounting firm required to be made hereunder.
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(c) The
firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Company
and Executive within fifteen (15) calendar days after the date on which
Executive’s right to any Acquisition Payments is triggered (if requested at that
time by the Company or Executive) or such other time as reasonably requested by
the Company or Executive. If the firm determines that no Excise Tax
is payable with respect to any Acquisition Payments, either before or after the
application of the Reduced Amount, it shall furnish the Company and Executive
with an opinion reasonably acceptable to Executive that no Excise Tax will be
imposed with respect to such Acquisition Payments. Any good faith
determinations of the firm made hereunder shall be final, binding and conclusive
upon the Company and Executive.
5. Release. As a condition of
receiving the Severance Benefits and/or the Change of Control Acceleration under
this Agreement to which Executive would not otherwise be entitled, Executive
shall execute, and allow to become effective, a release substantially in the
form attached hereto as Exhibit A (the “Release”)
(the Company shall determine the actual form of Release to be provided by
Executive) not later than thirty (30) days following Executive’s “separation
from service”. Unless the Release is timely executed by Executive,
delivered to the Company, and becomes effective after the termination of
Executive’s employment with the Company (the date on which the Release becomes
effective, the “Release
Date”, which date shall in no event be later than February 28 of the year
following the year in which termination occurs), Executive shall not receive any
of the Severance Benefits and/or the Change of Control Acceleration provided for
under this Agreement. Any lump sum severance benefits owed to
Executive shall be paid within ten (10) business days following the Release
Date, but in no event later than March 15 of the year following the year in
which termination occurs.
6. General
Provisions.
6.1 Notices. Any
notices provided hereunder must be in writing and shall be deemed effective upon
the earlier of personal delivery (including, personal delivery, email and
facsimile transmission), delivery by express delivery service (e.g. Federal
Express), or the third day after mailing by first class mail, to the Company at
its primary office location and to Executive at his address as listed on the
Company payroll (which address may be changed by either party by written
notice).
6.2 Severability. Whenever
possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or any other jurisdiction,
and such invalid, illegal or unenforceable provision will be reformed, construed
and enforced in such jurisdiction so as to render it valid, legal, and
enforceable consistent with the intent of the parties insofar as
possible.
6.3 Waiver. If either
party should waive any breach of any provisions of this Agreement, he or it
shall not thereby be deemed to have waived any preceding or succeeding breach of
the same or any other provision of this Agreement.
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6.4 Entire
Agreement. This Agreement, including its exhibits, constitutes
the entire agreement between Executive and the Company regarding the subject
matter hereof. As of the Effective Date, this Agreement supersedes
and replaces any and all other agreements, promises, or representations, written
or otherwise, between Executive and the Company with regard to this subject
matter, including the Existing Agreement. This Agreement is entered
into without reliance on any agreement, promise, or representation, other than
those expressly contained or incorporated herein, and, except for those changes
expressly reserved to the Company’s or Board’s discretion in this Agreement, the
terms of this Agreement cannot be modified or amended except in a writing signed
by Executive and a duly authorized officer of the Company which is approved by
the Board.
6.5 Counterparts. This
Agreement may be executed in separate counterparts, any one of which need not
contain signatures of more than one party, but all of which taken together will
constitute one and the same Agreement. Signatures transmitted via
facsimile shall be deemed the equivalent of originals.
6.6 Headings and
Construction. The headings of the sections hereof are inserted
for convenience only and shall not be deemed to constitute a part hereof or to
affect the meaning thereof. For purposes of construction of this
Agreement, any ambiguities shall not be construed against either party as the
drafter.
6.7 Successors and
Assigns. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive, the Company, and their respective
successors, assigns, heirs, executors and administrators, except that Executive
may not assign any of his duties hereunder and he may not assign any of his
rights hereunder without the written consent of the Company.
6.8 Attorney Fees. If
either party hereto brings any action to enforce his or its rights hereunder,
the prevailing party in any such action shall be entitled to recover his or its
reasonable attorneys’ fees and costs incurred in connection with such
action.
6.9 Arbitration. To provide a mechanism
for rapid and economical dispute resolution, Executive and the Company agree
that any and all disputes, claims, or causes of action, in law or equity,
arising from or relating to this Agreement (including the Release) or its
enforcement, performance, breach, or interpretation, or arising from or relating
to Executive’s employment with the Company or the termination of Executive’s
employment with the Company, will be resolved, to the fullest extent permitted
by law, by final, binding, and confidential arbitration held in Xxxxx County,
Florida and conducted by JAMS, Inc. (“JAMS”),
under its then-applicable Rules and Procedures. By agreeing to this arbitration
procedure, both Executive and the Company waive the right to resolve any such
dispute through a trial by jury or judge or by administrative
proceeding. Executive will have the right to be represented by
legal counsel at any arbitration proceeding at his expense. The
arbitrator shall: (a) have the authority to compel adequate
discovery for the resolution of the dispute and to award such relief as would
otherwise be available under applicable law in a court proceeding; and
(b) issue a written statement signed by the arbitrator regarding the
disposition of each claim and the relief, if any, awarded as to each claim, the
reasons for the award, and the arbitrator’s essential findings and conclusions
on which the award is based. The Company shall bear all fees for the
arbitration, except for any attorneys’ fees or costs associated with Executive’s
personal representation. The arbitrator, and not a court, shall also
be authorized to determine whether the provisions of this paragraph apply to a
dispute, controversy or claim sought to be resolved in accordance with these
arbitration procedures. Notwithstanding the provisions of this
paragraph, the parties are not prohibited from seeking injunctive relief in a
court of appropriate jurisdiction to prevent irreparable harm on any basis,
pending the outcome of arbitration. Any awards or orders in such
arbitrations may be entered and enforced as judgments in the federal and the
state courts of any competent jurisdiction.
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6.10 Governing Law. All
questions concerning the construction, validity and interpretation of this
Agreement shall be governed by the law of the State of Florida without regard to
conflicts of laws principles.
6.11 Exhibits.
Exhibit
A – Release Agreement
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Exhibit
10.3
In Witness
Whereof, the parties have executed this Employment
Agreement effective as of the Effective Date written above.
Xxx.xxx
Group, Inc.
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By:
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/s/ Xxxxxx Xxxxxxxxxxx
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Chairman,
Compensation Committee
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of
the Board of Directors
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Xxxxx
Xxxxxx
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/s/ Xxxxx Xxxxxx
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EXHIBIT
A
Release
Agreement
I
understand that my employment with Xxx.xxx
Group, Inc. (the “Company”)
terminated effective ___________, _____ (the “Separation
Date”). The Company has agreed that if I choose to sign this
Release Agreement (“Release”),
the Company will provide me certain severance benefits (minus the standard
withholdings and deductions) pursuant to the terms of the Employment Agreement
(the “Agreement”)
entered into and effective as of ___________ ___, 2008, between myself and the
Company, and any agreements incorporated therein by reference. I
understand that I am not entitled to such severance benefits unless I sign this
Release and allow it to become effective. I understand that,
regardless of whether I sign this Release, the Company will pay me all of my
accrued salary and vacation through the Separation Date, to which I am entitled
by law.
I also
confirm my obligations set forth in Section 3 of the
Agreement. Specifically, I agree that in the two (2) year period
immediately following the date on which I cease to be employed by the Company,
for any reason, I will not, whether directly or indirectly, personally or
through others: (a) encourage, induce, attempt to induce, solicit or attempt to
solicit any employee of the Company or any of the Company’s subsidiaries to
leave his or her employment with the Company or any of the Company’s
subsidiaries, (b) encourage, induce, attempt to induce, solicit or attempt to
solicit any customer of the Company or any of the Company’s subsidiaries to
reduce or terminate its customer relationship with the Company, or (c) be or
become an officer, director, stockholder, owner, co-owner, affiliate, partner,
promoter, employee, agent, representative, designer, consultant, advisor,
manager, licensor, sublicensor, licensee or sublicensee of, for or to, or
otherwise be or become associated with or acquire or hold (of record,
beneficially or otherwise) any direct or indirect interest in, any entity that
engages directly or indirectly in competition with the Company; provided,
however, that I may, without violating this paragraph, provide services to a
business division of a competing entity if such business division does not
compete with the Company and my services to the competing entity are limited to
such business division, and provided further, that I may own, as a passive
investor, an equity interest of any competing entity, so long as my holdings in
such entity do not in the aggregate constitute more than 1% of the voting stock
of such entity. I acknowledge that, due to the nature of the Company
’s business and the products and services provided by the Company, it is
possible to compete with the Company from any location within the world, and I
acknowledge and agree that it is thus impossible to identify or otherwise limit
the geographic scope of this agreement and that it is reasonable for the
restrictions contained herein to apply on a worldwide basis.
In
consideration for the severance benefits I am receiving under the Agreement, I
hereby generally and completely release the Company and its officers, directors,
agents, attorneys, employees, shareholders, parents, subsidiaries, and
affiliates from any and all claims, liabilities, demands, causes of action,
attorneys’ fees, damages, or obligations of every kind and nature, whether they
are now known or unknown, arising at any time prior to or on the date I sign
this Release. This general release includes, but is not limited to:
(a) all claims arising out of or in any way related to my employment with the
Company or the termination of that employment; (b) all claims related to my
compensation or benefits from the Company, including salary, bonuses,
commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options, or any other ownership interests in the Company;
(c) all claims for breach of contract, wrongful termination, and breach of
the implied covenant of good faith and fair dealing (including, but not limited
to, any claims based on or arising from the Agreement); (d) all tort
claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (e) all federal, state, and local
statutory claims, including claims for discrimination, harassment, retaliation,
attorneys’ fees, or other claims arising under the federal Civil Rights Act of
1964 (as amended), the federal Americans with Disabilities Act of 1990, the
federal Age Discrimination in Employment Act of 1967 (as amended), and the
California Fair Employment and Housing Act (as
amended). Notwithstanding the release in the preceding sentence, I am
not releasing any right of indemnification I may have in my capacity as an employee, officer
and/or director of the Company pursuant to any express indemnification agreement
or otherwise, nor am I releasing any rights I may have as an owner and/or holder
of the Company’s common stock and stock options. Excluded from this
Release are any claims which cannot be waived by law. I am waiving,
however, my right to any monetary recovery should any agency, such as the EEOC,
pursue any claims on my behalf.
In
releasing claims unknown to me at present, I am waiving all rights and benefits
under Section 1542 of the California Civil Code, and any law or legal principle
of similar effect in any jurisdiction: “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 his settlement with the debtor.”
If I am
forty (40) years of age or older as of the Separation Date, I acknowledge that I
am knowingly and voluntarily waiving and releasing any rights I may have under
the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”). I
also acknowledge that the consideration given for the waiver in the above
paragraphs is in addition to anything of value to which I was already
entitled. I have been advised by this writing, as required by the
ADEA that: (a) my waiver and release do not apply to any claims that
may arise after the date that I sign this Release; (b) I should consult with an
attorney prior to signing this Release (although I may choose voluntarily not to
do so); (c) I have twenty-one (21) days within which to consider this Release
(although I may choose voluntarily to sign this Release earlier); (d) I have
seven (7) days following the date that I sign this Release to revoke the Release
by providing written notice of revocation to the Company’s Board of Directors;
and (e) this Release will not be effective until the eighth day after this
Release has been signed by me.
I hereby
represent that I have been paid all compensation owed and for all hours worked,
have received all the leave and leave benefits and protections for which I am
eligible, pursuant to the Family and Medical Leave Act or otherwise, and have
not suffered any on-the-job injury for which I have not already filed a
claim.
Understood
and Agreed:
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Xxxxx
Xxxxxx
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Dated:
________________
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