EXHIBIT 10.10
EMPLOYMENT AGREEMENT
This Employment Agreement (this "Agreement") is made by and between
Telescan, Inc., a Delaware corporation (the "Company"), and Xxx X. Xxxxx
("Employee") effective as of February 28, 2000 (the "Effective Date").
WHEREAS, the Company is desirous of employing Employee in an executive
capacity on the terms and conditions, and for the consideration, hereinafter set
forth for the period provided herein commencing upon the Effective Date, and
Employee is desirous of employment with the Company on such terms and conditions
and for such consideration;
NOW, THEREFORE, for and in consideration of the mutual promises, covenants
and obligations contained herein, the Company and Employee agree as follows:
ARTICLE I
EMPLOYMENT AND DUTIES
Section 1.1 The Company agrees to employ Employee and Employee agrees to
be employed by the Company, subject to the terms and conditions of this
Agreement, beginning as of the Effective Date and continuing for the term
hereof.
Section 1.2 From and after the Effective Date, the Company shall employ
Employee in the position of Chief Executive Officer, or in such other positions
as the parties mutually may agree.
Section 1.3 Employee agrees to serve in the position referred to in
Section 1.2 hereof and to perform diligently and to the best of his abilities
the duties and services pertaining to such office as set forth in the Bylaws of
the Company in effect on the Effective Date, as well as such additional duties
and services appropriate to such office as the Board of Directors of the Company
(the "Board of Directors") may reasonably assign to Employee from time to time.
Section 1.4 Employee shall maintain a full-time office at the Company's
Houston, Texas location.
Section 1.5 Employee agrees, during the period of his employment by the
Company, to devote his full business time, energy and best efforts to the
business and affairs of the Company and its affiliates and not to engage,
directly or indirectly, in any other business or businesses, whether or not
similar to that of the Company, except with the prior written consent of the
Board of Directors. The foregoing notwithstanding, the parties recognize and
agree that Employee may engage in passive personal investments and charitable or
public service activities and serve on the board of directors of corporations to
the extent that such activities do not conflict with the business and affairs of
the Company or interfere with Employee's performance of his duties and
obligations hereunder.
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ARTICLE II
TERM AND TERMINATION OF EMPLOYMENT
Section 2.1 Unless sooner terminated pursuant to other provisions hereof,
the Company agrees to employ Employee for a three-year period beginning on the
Effective Date, and thereafter automatically extend the term of this Agreement
for successive one-year periods unless and until such time as either party shall
give written notice to the other at least 15 days prior to the expiration of the
then current term that no such automatic extension shall occur, in which event
Employee's employment shall terminate on the expiration of the then current
term.
Section 2.2 Notwithstanding the provisions of Section 2.1 hereof, the
Company shall have the right to terminate Employee's employment under this
Agreement at any time in accordance with the following provisions:
(a) upon Employee's death;
(b) upon Employee's becoming incapacitated or disabled by accident,
sickness or other circumstance which impairment (despite reasonable
accommodation) renders him mentally or physically incapable of performing
the duties and services required of him hereunder for a period of at least
120 consecutive days or for a period of 180 business days during any
12-month period;
(c) for cause, which for purposes of this Agreement shall mean each
of the following:
(i) a material act or material acts of dishonesty or
disloyalty by Employee adversely affecting the Company;
(ii) Employee's breach of any of his obligations of this
Agreement;
(iii) Employee's gross negligence or willful misconduct in
performance of the duties and services required of him pursuant to
this Agreement; or
(iv) Employee's conviction of a felony, or Employee's
conviction of a misdemeanor involving moral turpitude.
(d) by "Constructive Termination," which for purposes of this
Agreement shall mean each of the following:
(i) a material diminution of Employee's responsibilities,
including, without limitation, title and reporting relationship;
(ii) relocation of any New York office of the Company without
the consent of Employee; or
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(iii) a material reduction in Employee's compensation and
benefits received hereunder.
(e) in the sole discretion of the Board of Directors without cause;
PROVIDED, HOWEVER, in such case the Company shall give 15 days prior
written notice to Employee of its intention to terminate Employee's
employment with the Company and shall continue to provide compensation to
Employee in accordance with the terms set forth in Section 4.1(e) hereof.
Section 2.3 Employee shall have the right to terminate his employment under this
Agreement at any time in accordance with the following provisions:
(a) a breach by the Company of any of its obligations under this
Agreement which, if correctable, remains uncorrected for 30 days following
written notice specifying such breach given by Employee to the Company; or
(b) in the sole discretion of Employee; PROVIDED, HOWEVER, in such
case Employee shall give 15 days prior written notice to the Company of
his intention to terminate his employment with the Company.
Section 2.4 If the Company desires to terminate Employee's employment
hereunder as provided in Section 2.2 hereof or Employee desires to terminate
Employee's employment hereunder as provided in Section 2.3 hereof, it or he
shall do so by giving written notice to the other party that it or he has
elected to terminate Employee's employment hereunder and stating the effective
date and reason, if any, for such termination. In the event of such termination,
the provisions of Articles IV through IX hereof shall continue to apply in
accordance with their terms. Any question as to whether and when there has been
a termination of Employee's employment, and the cause of such termination, shall
be determined by the Board of Directors in its sole discretion.
ARTICLE III
COMPENSATION AND BENEFITS
Section 3.1 COMPENSATION. During the term of this Agreement, the Company
shall provide compensation to Employee in the following forms:
(a) BASE SALARY. Employee shall receive an annual base salary of
$295,000, which amount shall be subject to annual review by the Board of
Directors and/or the Compensation Committee of the Company for possible
increases.
(b) BONUS. Employee shall participate in, and receive an annual
bonus pursuant to, the Company's Officer Bonus Plan.
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(c) STOCK OPTIONS.
(i) Upon approval of the Company's Board of Directors, Employee will
be granted options to purchase an aggregate of 400,000 shares of the
Company's common stock at an exercise price equal to the per share Fair
Market Value (as hereinafter defined) on the date of grant. The options to
be granted to Employee shall be granted as nonqualified options. All
options granted to Employee hereunder shall vest immediately upon a Change
of Control (as hereinafter defined). The options will be granted pursuant
to a stock option agreement to be executed by Employee and the Company as
of the date hereof. The options will vest as follows:
(A) 100,000 of the option shares will vest at the end of
Employee's first six months of employment;
(B) 100,000 of the option shares will vest 20% annually
beginning one year from the date of this Agreement; PROVIDED,
HOWEVER, that the vesting schedule of the option shares under
this subsection (B) shall be reduced to four years if the Fair
Market Value of the Company's common stock is equal to or
greater than $36.00 per share for any ten consecutive trading
days during the term of this Agreement; and
(C) 200,000 of the option shares will vest at the end of
Employee's fifth year of employment; PROVIDED, HOWEVER, if the
Fair Market Value of the Company's common stock is equal to or
greater than $36.00 for any ten consecutive trading days
during the term of this Agreement, then the 200,000 option
shares under this subsection (C) will vest annually in equal
amounts such that 100% of the option shares under this
subsection (C) will be vested upon the fourth anniversary of
date of this Agreement.
"Fair Market Value" means (i) if the Company's common stock is not
listed or admitted to trade on a national securities exchange and if bid
and ask prices for the common stock are not furnished through NASDAQ or a
similar organization, the value established by the Compensation Committee
of the Board of Directors (the "Compensation Committee"), in its sole
discretion; (ii) if the Company's common stock is listed or admitted to
trade on a national securities exchange or a national market system, the
closing price of the common stock, as published in the WALL STREET
JOURNAL, so listed or admitted to trade on such day or, if there is no
trading of the common stock on such date, then the closing price of the
common stock on the next preceding date on which there was trading in such
shares; or (iii) if the common stock is not listed or admitted to trade on
a national securities exchange or a national market system, the mean
between the bid and asked price for the common stock on such date, as
furnished by the National Association of Securities Dealers, Inc. through
NASDAQ or a similar organization if NASDAQ is no longer reporting such
information.
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(ii) In addition, Employee shall be eligible to receive future stock
option grants, as determined by the Compensation Committee.
Section 3.2 BENEFITS. During the term of this Agreement, Employee shall be
afforded the following benefits as incidences of his employment:
(a) BUSINESS AND ENTERTAINMENT EXPENSES. Subject to the Company's
standard policies and procedures with respect to expense reimbursement as
applied to its executive employees generally, the Company will reimburse
Employee for, or pay on behalf of Employee, reasonable and appropriate
expenses incurred by Employee for business related purposes, including
dues and fees to approved industry and professional organizations, and
reasonable costs of entertainment incurred in connection with business
development.
(b) CLUB MEMBERSHIP. The Company shall reimburse Employee for
membership dues at social or country clubs designated by Employee as
mutually agreed by the Company and Employee.
(c) OTHER. Employee and, to the extent applicable, Employee's
family, dependents and beneficiaries, shall be allowed to participate in
all benefits, plans and programs, including improvements or modifications
of the same, which are now, or may hereafter be, available to executive
employees of the Company generally. Such benefits, plans and programs may
include, without limitation, a profit sharing plan, a thrift plan, a
health insurance or health care plan, life insurance, disability insurance
or a pension plan. The Company shall not, however, by reason of this
paragraph be obligated to institute, maintain, or refrain from changing,
amending or discontinuing, any such benefit plan or program, so long as
such changes are similarly applicable to executive employees of the
Company generally.
Section 3.3 PAYROLL. Employee shall receive all compensation pursuant to
this Agreement in accordance with the Company's Houston, Texas customary payroll
practices with respect to time and manner of payment.
ARTICLE IV
EFFECT OF TERMINATION ON COMPENSATION
Section 4.1 BY THE COMPANY.
(a) TERMINATION UPON DEATH. In the event of Employee's death during
the term of this Agreement, this Agreement will terminate upon the first
day of the month following the Employee's date of death, and all of
Employee's rights and benefits provided for in this Agreement will
terminate as of such date; PROVIDED, HOWEVER, that Employee's estate will
be paid Employee's annual salary and pro rata bonus through the date of
death for a period of six months after such death occurs and, PROVIDED,
FURTHER, all stock options referenced in Section 3.1(c) shall vest on
Employee's death, and
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Employee's estate may exercise such options for a period of one year from
the date of termination.
(b) TERMINATION UPON DISABILITY. If Employee's employment hereunder
is terminated by the Company pursuant to Section 2.2(b) hereof prior to
the expiration of the then current term, all of Employee's rights and
benefits provided for in this Agreement will terminate as of such date;
PROVIDED, HOWEVER, that Employee will be paid Employee's annual salary and
pro rata bonus through the date of termination for a period of six months
after such termination occurs and, PROVIDED, FURTHER, that Employee all
stock options referenced in Section 3.1(c) shall vest effective as of the
termination date, and Employee may exercise such options for a period of
one year from the date of termination.
(c) TERMINATION FOR CAUSE. Employer shall be entitled to terminate
Employee's employment at any time for cause, as defined by Section 2.2(c).
In the event of termination for cause, all of Employee's rights and
benefits provided for in this Agreement shall terminate, except as to any
accrued and unpaid base salary provided for in Section 3.1(a).
(d) TERMINATION AFTER CHANGE OF CONTROL. If, within 24 months
following a Change of Control (as hereinafter defined), the Company or its
successor terminates Employee's employment without cause or by
Constructive Termination, Employee will be paid, in a lump sum payment, an
amount equal to two times the sum of (i) his annual salary for the year in
which such termination occurs and (ii) the greater of (A) the target
bonuses for each of the four quarters in the year in which such
termination occurs and (B) the actual bonus earned by Employee for the
four fiscal quarters immediately preceding such termination. All unvested
stock options referenced in Section 3.1(c)(ii) shall vest effective as of
the date of termination and Employee may exercise such options for a
period of 90 days from the date of termination. Employee shall receive his
accrued and unpaid salary and any accrued and unpaid pro rata bonus
through the date of termination, and Employee will continue to participate
in any benefits referenced in Section 3.2(c) for a period of two years
from the date of termination; PROVIDED, HOWEVER, to the extent that any
benefit under Section 3.2(c) cannot be continued during a period when
Employee is not an employee of the Company, the Company shall pay Employee
an amount in cash equal to the economic value of such benefit, such value
to be determined as of the time of termination.
In the event that Employee is deemed to have received an excess
parachute payment (as such term is defined in Section 280G(b) of the
Internal Revenue Code of 1986, as amended (the "Code")) which is subject
to excise taxes ("Excise Taxes") imposed by Section 4999 of the Code with
respect to compensation paid to Employee pursuant to this Agreement, the
Company shall make a Bonus Payment (as defined below) to Employee when
Employee receives any excess parachute payments. "Bonus Payment" means a
cash payment equal to the sum of (i) all Excise Taxes payable by Employee
plus (ii) any additional Excise Tax or federal or state income taxes
imposed with respect to the Bonus Payment.
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"Change of Control" means the happening of any of the following events:
(i) The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) (a "Person"), of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 50% or more of either (A) the then outstanding shares of common
stock of the Company or (B) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in
the election of directors; provided, however, that the following
acquisitions shall not constitute a Change of Control under this
subsection (i): (x) any acquisition directly from the Company (excluding
an acquisition by virtue of the exercise of a conversion privilege), (y)
any acquisition by the Company, or (z) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company; or
(ii) Individuals who, as of the effective date hereof, constitute
the Board of Directors (the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the effective date hereof
whose election, or nomination for election by the Company's stockholders,
was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as
a result of either an actual or threatened election contest (as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board; or
(iii) Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company or the sale or other disposition
of all or substantially all of the assets of the Company.
(e) OTHER EVENTS UPON TERMINATION. If Employee's employment
hereunder shall be terminated by the Company without cause or by
Constructive Termination other than within 24 months following a Change of
Control, Employee shall receive in accordance with the Company's then
current payroll practices an amount equal to the sum of (i) Employee's
annual base salary for the year in which such termination occurs and (ii)
the greater of (A) the target bonuses for each of the four quarters in the
year in which such termination occurs and (B) the actual bonus earned by
Employee for the four fiscal quarters immediately preceding such
termination, payable for a period of time equal to the longer of (i) two
years and (ii) the period of time remaining under the then current term of
this Agreement (such longer period, the "Severance Period"). Employee
shall receive his accrued and unpaid salary and any accrued and unpaid pro
rata bonus through the date of termination, and Employee will continue to
participate in any benefits referenced in Section 3.2(c) for the Severance
Period; PROVIDED, HOWEVER, to the extent that any benefit under Section
3.2(c) cannot be continued during a period when Employee is not an
employee of the Company, the Company shall pay Employee an amount in cash
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equal to the economic value of such benefit, such value to be determined
as of the time of termination. In addition, all stock options referenced
in Section 3.1(c) shall vest effective as of the date of termination, and
Employee may exercise such options for a period of three months from the
date of termination.
Section 4.2 BY EMPLOYEE.
(a) BREACH OF AGREEMENT BY COMPANY. If Employee's employment
hereunder shall be terminated by Employee pursuant to the provisions set
forth in Section 2.3(a) hereof prior to the expiration of the then current
term of this Agreement, Employee shall receive in accordance with the
Company's then current payroll practices an amount equal to the sum of (i)
Employee's annual base salary for the year in which such termination
occurs and (ii) the greater of (A) the target bonuses for each of the four
quarters in the year in which such termination occurs and (B) the actual
bonus earned by Employee for the four fiscal quarters immediately
preceding such termination, payable for a period of time equal to the
longer of (i) two years and (ii) the period of time remaining under the
then current term of this Agreement. Employee shall receive his accrued
and unpaid salary and any accrued and unpaid pro rata bonus through the
date of termination, and Employee will continue to participate in any
benefits referenced in Section 3.2(c) for the Severance Period; PROVIDED,
HOWEVER, to the extent that any benefit under Section 3.2(c) cannot be
continued during a period when Employee is not an employee of the Company,
the Company shall pay Employee an amount in cash equal to the economic
value of such benefit, such value to be determined as of the time of
termination. In addition, all stock options referenced in Section 3.1(c)
shall vest effective as of the date of termination, and Employee may
exercise such options for a period of three months from the date of
termination.
(b) VOLUNTARY RESIGNATION. If Employee's employment hereunder shall
be terminated by Employee pursuant to the provisions set forth in Section
2.3(b) hereof prior to the expiration of the then current term, then, upon
such termination, subject to COBRA, all compensation and all benefits to
Employee hereunder shall terminate contemporaneously with the termination
of such employment; PROVIDED, HOWEVER, Employee shall not receive a bonus
for the year during which Employee's employment terminated or any
subsequent year.
ARTICLE V
CONFIDENTIAL INFORMATION
Section 5.1 COMPANY INFORMATION. Employee acknowledges that the Company's
business is highly competitive and that the Company's books, records and
documents, technical information concerning its products, equipment, services
and processes, procurement procedures and pricing techniques and the names of
and other information (e.g., credit and financial data) concerning the Company's
customers and business associates all comprise confidential business information
and trade secrets of the Company (collectively, "Confidential Information")
which are valuable, special, and unique assets of the Company which the Company
uses in its business to obtain a competitive advantage over the Company's
competitors which do not know or use
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this information. Employee further acknowledges that protection of the
Confidential Information against unauthorized disclosure and use is of critical
importance to the Company in maintaining its competitive position. Accordingly,
Employee hereby agrees that he will not, at any time during or after his
employment by the Company, make any unauthorized disclosure of any Confidential
Information or make any use thereof, except for the benefit of, and on behalf
of, the Company. For the purposes of this Article 5, the term "Company" shall
also include affiliates of the Company.
Section 5.2 THIRD PARTY INFORMATION. Employee acknowledges that, as a
result of his employment by the Company, he may from time to time have access
to, or knowledge of, confidential business information or trade secrets of third
parties, such as customers, suppliers, partners, joint venturers, and the like,
of the Company. Employee agrees to preserve and protect the confidentiality of
such third-party confidential information and trade secrets to the same extent,
and on the same basis, as the Confidential Information.
Section 5.3 RETURN OF DOCUMENTS. All written materials, records and other
documents made by, or coming into the possession of, Employee during the period
of his employment by the Company which contain or disclose the Confidential
Information shall be and remain the property of the Company. Upon request, and
in any event upon termination of Employee's employment by the Company, for any
reason, he promptly shall deliver the same, and all copies, derivatives and
extracts thereof, to the Company.
ARTICLE VI
INVENTIONS, DISCOVERIES AND COPYRIGHTS
Section 6.1 INVENTIONS AND DISCOVERIES. Employee agrees promptly and
freely to disclose to the Company, in writing, any and all ideas, conceptions,
inventions, improvements, and discoveries, whether patentable or not, which are
conceived or made by Employee, solely or jointly with another, during the period
of his employment by the Company and which are related to the business or
activities of the Company. Employee agrees to assign and hereby does assign to
the Company all his interest in such ideas, conceptions, inventions,
improvements, and discoveries. Employee agrees that, whenever requested to do so
by the Company, he shall assist in the preparation of any document that the
Company shall deem necessary and shall execute any and all applications,
assignments or other instruments that the Company shall deem necessary, in its
sole discretion, to apply for and obtain protection, including patent
protection, for such ideas, conceptions, inventions, improvements and
discoveries in all countries of the world. The obligations in the preceding
sentence shall continue beyond the termination of Employee's employment
regardless of the reason for such termination.
Section 6.2 COPYRIGHTS. If during Employee's employment by the Company,
Employee creates any original work of authorship (each, a "Work") fixed in any
tangible medium of expression which is the subject matter of copyright (e.g.,
written presentations, computer programs, videotapes, drawings, maps, models,
manuals or brochures) relating to the Company's business, products, or services,
whether a Work is created solely by Employee or jointly with others, the Company
shall be deemed the author of a Work if the Work is prepared by Employee
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in the scope of his employment; or, if the Work is not prepared by Employee
within the scope of his employment but is specially ordered by the Company as a
contribution to a collective work, as a part of a motion picture or other
audiovisual work, as a translation, as a supplementary work, as a compilation or
as an instructional text, then the Work shall be considered to be a work made
for hire and the Company shall be the author of the Work. In the event a Work is
not prepared by Employee within the scope of his employment or is not a Work
specially ordered and deemed to be a work made for hire, then Employee hereby
agrees to assign, and by these presents, does assign, to the Company all of
Employee's worldwide right, title and interest in and to such Work and all
rights of copyright therein. Both during the period of Employee's employment by
the Company and thereafter, Employee agrees to assist the Company and its
nominee, at any time, in the protection of the Company's worldwide right, title
and interest in and to the work and all rights of copyright therein, including
but not limited to, the execution of all formal assignment documents requested
by the Company or its nominee and the execution of all lawful oaths and
applications for registration of copyright in the United States and foreign
countries.
Section 6.3 Employee represents that he has not heretofore made any
invention or discovery or prepared any work which is the subject matter of
copyright related to the Company's business which he wishes to exclude from the
provisions of Section 6.1 and Section 6.2 hereof. As used in this Article VI,
the "Company" shall include affiliates of the Company.
ARTICLE VII
NON-COMPETITION
Section 7.1 The restrictive covenants contained in this Article VII and in
Article VIII hereof are supported by consideration to Employee hereunder. As a
material incentive for the Company to enter into this Agreement, Employee hereby
agrees that he will not at any time during his employment by the Company and for
a period commencing on the date of termination of his employment and continuing
until the expiration of 24 months (the "Non-Competition Period"), directly or
indirectly, for himself or for others, in any state of the United States, or in
any foreign country where the Company or any of its affiliates is then
conducting any business:
(a) engage in any business that is directly competitive with
activities conducted by the Company (or any of the Company's subsidiaries
or divisions), which activities conducted by the Company (or any of the
Company's subsidiaries or divisions) represent in the aggregate greater
than 25% of the Company's consolidated revenues in 1999;
(b) render advice or services to, or otherwise assist, any other
person or entity who is engaged, directly or indirectly, in any business
that is directly competitive with activities conducted by the Company (or
any of the Company's subsidiaries or divisions), which activities
conducted by the Company (or any of the Company's subsidiaries or
divisions) represent in the aggregate greater than 25% of the Company's
consolidated revenues in 1999; or
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(c) transact any business in any manner pertaining to suppliers or
customers of the Company or any affiliate which, in any manner, would
have, or is likely to have, an adverse effect upon the Company or any
affiliate.
The foregoing shall not prohibit Employee's continued participation in
those activities in which he is engaged on the date hereof and which have been
disclosed to the Company.
Notwithstanding the foregoing, in the event of termination of this
Agreement pursuant to Section 4.1(d), 4.1(e) or 4.2(a), the prohibitions of this
Article VII shall no longer apply at such time as Employee waives his right to
receive any further payments under Section 4.1(d), 4.1(e) or 4.2(a), as the case
may be.
Section 7.2 Employee understands that the foregoing restrictions may limit
his ability to engage in a business similar to the Company's business in
specific areas of the world for the Non-Competition Period, but acknowledges
that he will receive sufficiently high remuneration and other benefits from the
Company hereunder to justify such restriction. In addition to any remedies
provided under applicable law, the Company and Employee agree that during the
period the Company is paying compensation and benefits to Employee pursuant to
Articles III or IV hereof, the Company's remedy for breach of the provisions of
this Article VII shall include, but shall not be limited to, the termination of
all compensation and all benefits to Employee otherwise provided under this
Agreement.
Section 7.3 It is expressly understood and agreed that the Company and
Employee consider the restrictions contained in Section 7.1 hereof to be
reasonable and necessary for the purposes of preserving and protecting the good
will and proprietary information of the Company, nevertheless, if any of the
aforesaid restrictions is found by a court having jurisdiction to be
unreasonable, over broad as to geographic area or time or otherwise
unenforceable, the parties intend for the restrictions therein set forth to be
modified by such court so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.
ARTICLE VIII
SOLICITATION OF EMPLOYEES
During the term of his employment by the Company and thereafter for the
Non-Competition Period, Employee shall not, on his own behalf or on behalf of
any other person, partnership, entity, association, or corporation, hire or seek
to hire any non-clerical or non-secretarial employee of the Company or in any
other manner attempt directly or indirectly to influence, induce, or encourage
any non-clerical or non-secretarial employee of the Company to leave the
employment of the Company, nor shall he use or disclose to any person,
partnership, entity, association, or corporation any information concerning the
names, addresses or personal telephone numbers of any employees of the Company.
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ARTICLE IX
MISCELLANEOUS
Section 9.1 Notices. For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when personally delivered or when mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:
If to the Company to: Telescan Inc.
0000 Xxxxxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000-0000
Attention: Chairman of the Compensation Committee
If to Employee to: Xxx X. Xxxxx
X.X. Xxx 000
Xxxxxxx, Xxx Xxxx 00000
or to such other address as either party may furnish to the other in writing in
accordance herewith, except that notices of changes of address shall be
effective only upon receipt.
Section 9.2 APPLICABLE LAW, JURISDICTION AND VENUE. This Agreement is
entered into under, and shall be governed for all purposes by, the laws of the
State of Texas. Any suit by the Company to enforce any right hereunder or to
obtain a declaration of any right or obligation hereunder may, at the sole
option of the Company, be brought (i) in any court of competent jurisdiction in
the State of Texas or (ii) in any court of competent jurisdiction where
jurisdiction may be had over Employee. Employee hereby expressly consents to the
jurisdiction of the foregoing courts for such purposes and to the appointment of
the Secretary of State for the State of Texas as his agent for service of
process.
Section 9.3 NO WAIVER. No failure by either party hereto at any time to
give notice of any breach by the other party of, or to require compliance with,
any condition or provision of this Agreement shall (i) be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time or (ii) preclude insistence upon strict compliance in the
future.
Section 9.4 SEVERABILITY. If a court of competent jurisdiction determines
that any provision of this Agreement is invalid or unenforceable, then the
invalidity or unenforceability of that provision shall not affect the validity
or enforceability of any other provision of this Agreement, and all other
provisions shall remain in full force and effect.
Section 9.5 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement.
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Section 9.6 WITHHOLDING OF TAXES. The Company may withhold from any
benefits payable under this Agreement all federal, state, city or other taxes as
may be required pursuant to any law or governmental regulation or ruling.
Section 9.7 HEADINGS. The paragraph headings have been inserted for
purposes of convenience and shall not be used for interpretive purposes.
Section 9.8 AFFILIATE. As used in this Agreement, "affiliate" shall mean
any person or entity which directly or indirectly through one or more
intermediaries owns or controls, is owned or controlled by, or is under common
ownership or control with, the Company.
Section 9.9 ASSIGNMENT. This Agreement, and the rights and obligations of
the parties hereunder, are personal and neither this Agreement, nor any right,
benefit or obligation of either party hereto, shall be subject to voluntary or
involuntary assignment, alienation or transfer, whether by operation of law or
otherwise, without the prior written consent of the other party except that
vested rights to payment shall be subject to devise, and shall descend in
accordance with applicable laws of inheritance.
Section 9.10 LEGAL FEES. If, prior to a Change of Control, either party
institutes any legal action to enforce his or its rights under, or to recover
damages for breach of this Agreement, the Company shall pay up to an aggregate
of $10,000 of Employee's actual expenses incurred in pursuit or defense of such
legal action.
If, following a Change of Control, either party institutes any legal
action to enforce his or its rights under, or to recover damages for breach of
this Agreement, the "prevailing party" in such action shall be entitled to
recover from the other party any actual expenses for attorney's fees and
disbursements incurred by him or it. For these purposes, a party shall be
considered a "prevailing party" if and only if the parties agree to such
characterization of a party as a "prevailing party" or a final order of a court
specifically recites that such party is a "prevailing party."
Section 9.11 TERM. This Agreement has a term co-extensive with the term of
employment as defined in Section 2.1 hereof. Termination of this Agreement
pursuant to the provisions of Section 2.1 hereof shall not affect any right or
obligation of either party hereto which is accrued or vested prior to or upon
such termination or the rights and set forth in Articles IV, V, VI and VII
hereof.
Section 9.12 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
of the parties with regard to the subject matter hereof, and contains all the
covenants, promises, representations, warranties and agreements between the
parties with respect to employment of Employee by the Company. Each party to
this Agreement acknowledges that no representation, inducement, promise or
agreement, oral or written, has been made by either party, or by anyone acting
on behalf of either party, which is not embodied herein, and that no agreement,
statement, or promise relating to the employment of Employee by the Company,
which is not contained in this Agreement, shall be valid or binding. Any
modification of this Agreement will be effective only if it is in writing and
signed by the party to be charged.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective as of the Effective Date.
TELESCAN, INC.
By:_________________________________________
Name:_______________________________________
Title:______________________________________
____________________________________________
Xxx X. Xxxxx
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