EXHIBIT 10.30
CHANGE IN CONTROL AGREEMENT
May 11, 2000
Name
Address
Address
Dear :
You are presently the Chief Executive Officer of Vital Images, Inc., a Minnesota
corporation (the "Company"). The Company considers the establishment and
maintenance of a sound and vital management to be essential to protecting and
enhancing the best interests of the Company and its shareholders. In this
connection, the Company recognizes that, as is the case with many publicly held
corporations, the possibility of a Change in Control may arise and that such
possibility and the uncertainty and questions which it may raise among
management may result in the departure or distraction of management personnel to
the detriment of the Company and its shareholders.
Accordingly, the Board has determined that appropriate steps should be taken to
minimize the risk that Company management will depart prior to a Change in
Control, thereby leaving the Company without adequate management personnel
during such a critical period, and that appropriate steps also be taken to
reinforce and encourage the continued attention and dedication of members of the
Company's management to their assigned duties without distraction in
circumstances arising from the possibility of a Change in Control. In
particular, the Board believes it important, should the Company or its
shareholders receive a proposal for transfer of control, that you be able to
continue your management responsibilities without being influenced by the
uncertainties of your own personal situation.
The Board recognizes that continuance of your position with the Company involves
a substantial commitment to the Company in terms of your personal life and
professional career and the possibility of foregoing present and future career
opportunities, for which the Company receives substantial benefits. Therefore,
to induce you to remain in the employ of the Company, this Agreement, which has
been approved by the Board, sets forth the benefits which the Company agrees
will be provided to you in the event your employment with the Company is
terminated in connection with a Change in Control under the circumstances
described below.
The following terms will have the meaning set forth below unless the context
clearly requires otherwise. Terms defined elsewhere in this Agreement will have
the same meaning throughout this Agreement.
ARTICLE I.
DEFINITIONS
1. "AFFILIATE" means (i) any corporation at least a majority of whose
outstanding securities ordinarily having the right to vote at elections
of directors is owned directly or indirectly by the Company or (ii) any
other form of business entity in which the Company, by virtue of a
direct or indirect ownership interest, has the right to elect a
majority of the members of such entity's governing body.
Xx. Xxxxx
Monday, October 9,2000
Page
2. "AGREEMENT" means this letter agreement as amended, extended or renewed
from time to time in accordance with its terms.
3. "BOARD" means the board of directors of the Company duly qualified and
acting at the time in question. On and after the date of a Change in
Control, any duty of the Board in connection with this Agreement is
nondelegable and any attempt by the Board to delegate any such duty is
ineffective.
4. "CAUSE" means:
a. your gross misconduct;
b. your willful and continued failure to perform substantially
your duties with the Company (other than any such failure (1)
resulting from your Disability or incapacity due to bodily
injury or physical or mental illness or (2) relating to
changes in your duties or responsibilities as an executive
officer of the Company as in effect immediately prior to a
Change in Control which in your reasonable judgment, is an
adverse change (other than, if applicable, any such change
attributable to the fact that the Company is no longer
publicly owned)) after a demand for substantial performance is
delivered to you by the chair of the Board which specifically
identifies the manner in which you have not substantially
performed your duties and provides for a reasonable period of
time within which you may take corrective actions; or
c. your conviction (including a plea of nolo contendere) of
willfully engaging in illegal conduct constituting a felony or
gross misdemeanor under federal or state law which is
materially and demonstrably injurious to the Company or which
impairs your ability to perform substantially your duties for
the Company.
An act or failure to act will be considered "gross" or "willful" for
this purpose only if done, or omitted to be done, by you in bad faith
and without reasonable belief that it was in, or not opposed to, the
best interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Company's
board of directors (or a committee thereof) or based upon the advice of
counsel for the Company will be conclusively presumed to be done, or
omitted to be done, by you in good faith and in the best interests of
the Company. It is also expressly understood that your attention to
matters not directly related to the business of the Company will not
provide a basis for termination for Cause so long as the Board did not
expressly disapprove in writing of your engagement in such activities
either before or within a reasonable period of time after the Board
knew or could reasonably have known that you engaged in those
activities. Notwithstanding the foregoing, you may not be terminated
for Cause unless and until there has been delivered to you a copy of a
resolution duly adopted by the affirmative vote of not less than a
majority of the entire membership of the Board at a meeting of the
Board called and held for the purpose (after reasonable notice to you
and an opportunity for you, together with your counsel, to be heard
before the Board), finding that in the good faith opinion of the Board
you were guilty of the conduct set forth above in clauses a., b. or c.
of this definition and specifying the particulars thereof in detail.
5. "CHANGE IN CONTROL" means any of the following:
a. the sale, lease, exchange or other transfer, directly or
indirectly, of all or substantially all of the assets of the
Company in one transaction or in a series of related
transactions, to any Person;
b. except in the case of the liquidation or dissolution of the
Company in connection with the bankruptcy or insolvency of the
Company or similar arrangement for the benefit of the
Company's creditors, the approval by the shareholders of the
Company of any plan or proposal for the liquidation or
dissolution of the Company, as the case may be;
c. any Person is or becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of
(1) 20 percent or more, but not more than 50 percent, of the
combined voting power of the outstanding securities of the
Company ordinarily having the right to vote at elections of
directors, unless the transaction resulting in such ownership
has been approved in advance by the "continuing directors" or
(2) more than 50 percent of the combined voting power of the
outstanding securities of the Company ordinarily having the
right to vote at elections of directors (regardless of any
approval by the continuing directors);
d. a merger or consolidation to which the Company is a party if
the shareholders of the Company immediately prior to the
effective date of such merger or consolidation have, solely on
account of ownership of securities of the Company at such
time, "beneficial ownership" (as defined in Rule 13d-3 under
the Exchange Act) immediately following the effective date of
such merger or consolidation of securities of the surviving
company representing (1) 50 percent or more, but not more than
80 percent, of the combined voting power of the surviving
corporation's then outstanding securities ordinarily having
the right to vote at elections of directors, unless such
merger or consolidation has been approved in advance by the
continuing directors, or (2) less than 50 percent of the
combined voting power of the surviving corporation's then
outstanding securities ordinarily having the right to vote at
elections of directors (regardless of any approval by the
continuing directors);
e. the continuing directors cease for any reason to constitute at
least a majority of the Board; or
f. a change in control of a nature that is determined by outside
legal counsel to the Company, in a written opinion
specifically referencing this provision of the Agreement, to
be required to be reported (assuming such event has not been
"previously reported") pursuant to section 13 or 15(d) of the
Exchange Act, whether or not the Company is then subject to
such reporting requirement, as of the effective date of such
change in control.
For purposes of this Section 1(e), a "continuing director" means any
individual who is a member of the Board on May 11, 2000, while he or
she is a member of the Board, and any individual who subsequently
becomes a member of the Board whose election or nomination for election
by the Company's shareholders was approved by a vote of at least a
majority of the directors who are
continuing directors (either by a specific vote or by approval of the
proxy statement of the Company in which such individual is named as a
nominee for director without objection to such nomination).
6. "CODE" means the Internal Revenue Code of 1986, as amended. Any
reference to a specific provision of the Code includes a reference to
such provision as it may be amended from time to time and to any
successor provision.
7. "COMPANY" means Vital Images, Inc. and/or any Affiliate.
8. "CONFIDENTIAL INFORMATION" means information which is proprietary to
the Company or proprietary to others and entrusted to the Company,
whether or not trade secrets. It includes information relating to
business plans and to business as conducted or anticipated to be
conducted, and to past or current or anticipated products or services.
It also includes, without limitation, information concerning research,
development, purchasing, accounting, marketing and selling. All
information which you have a reasonable basis to consider confidential
is Confidential Information, whether or not originated by you and
without regard to the manner in which you obtain access to that and any
other proprietary information.
9. "DATE OF TERMINATION" following a Change in Control (or prior to a
Change in Control if your termination was either a condition of the
Change in Control or was at the request or insistence of any Person
related to the Change in Control) means:
a. if your employment is to be terminated for Disability, 30 days
after Notice of Termination is given (provided that you have
not returned to the performance of your duties on a full-time
basis during such 30-day period);
b. if your employment is to be terminated by the Company for
Cause or by you for Good Reason, the date specified in the
Notice of Termination, which date may not be less than 30 days
or more than 60 days after the date on which the Notice of
Termination is given unless you and the Company otherwise
expressly agree;
c. if your employment is to be terminated by the Company for any
reason other than Cause, Disability, death or Retirement, the
date specified in the Notice of Termination, which in no event
may be a date earlier than 90 days after the date on which a
Notice of Termination is given, unless an earlier date has
been expressly agreed to by you in writing either in advance
of, or after; receiving such Notice of Termination; or
d. if your employment is terminated by reason of death or
Retirement, the date of death or Retirement, respectively.
In the case of termination by the Company of your employment for Cause,
if you have not previously expressly agreed in writing to the
termination, then within 30 days after receipt by you of the Notice of
Termination with respect thereto, you may notify the Company that a
dispute exists concerning the termination, in which event the Date of
Termination will be the date set either by mutual written agreement of
the parties or by the judge or arbitrators in a proceeding as provided
in Article VII Section 6 of this Agreement. During the pendency of any
such dispute, you will
continue to make yourself available to provide services to the Company
and the Company will continue to pay you your full compensation and
benefits in effect immediately prior to the date on which the Notice of
Termination is given (without regard to any changes to such
compensation or benefits which constitute Good Reason) and until the
dispute is resolved in accordance with Article VII Section 6 of this
Agreement. You will be entitled to retain the full amount of any such
compensation and benefits without regard to the resolution of the
dispute unless the judge or arbitrators decide(s) that your claim of a
dispute was frivolous or advanced by you in bad faith.
10. "DISABILITY" means a disability as defined in the Company's long-term
disability plan as in effect immediately prior to the Change in Control
or; in the absence of such a plan, means permanent and total disability
as defined in section 22(e)(3) of the Code.
11. "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
Any reference to a specific provision of the Exchange Act or to any
rule or regulation thereunder includes a reference to such provision as
it may be amended from time to time and to any successor provision.
12. "GOOD REASON" means:
a. the termination of your employment with the Company by you for
any reason, except in connection with the termination of your
employment for Cause, Disability or Retirement or as a result
of your death;
b. a reduction by the Company in your base salary (or an adverse
change in the form or timing of the payment thereof) as in
effect immediately prior to the Change in Control or as
thereafter increased;
c. the failure by the Company to continue in effect any Plan in
which you (and/or your family) are eligible to participate at
any time during the 90-day period immediately preceding the
Change in Control (or Plans providing you (and/or your family)
with at least substantially similar benefits) other than as a
result of the normal expiration of any such Plan in accordance
with its terms as in effect immediately prior to the 90-day
period immediately preceding the time of the Change in
Control, or the taking of any action, or the failure to act,
by the Company which would adversely affect your (and/or your
family's) continued eligibility to participate in any of such
Plans on at least as favorable a basis to you (and/or your
family) as is the case on the date of the Change in Control or
which would materially reduce your (and/or your family's)
benefits in the future under any of such Plans or deprive you
(and/or your family) of any material benefit enjoyed by you
(and/or your family) at the time of the Change in Control;
d. the Company's requiring you to be based more than 30 miles
from where your office is located immediately prior to the
Change in Control, except for required travel on the Company's
business, and then only to the extent substantially consistent
with the business travel obligations which you undertook on
behalf of the Company during the 90-day period immediately
preceding the Change in Control (without regard to travel
related to or in anticipation of the Change in Control);
e. the failure by the Company to obtain from any Successor the
assent to this Agreement contemplated by Article VI of this
Agreement;
f. any purported termination by the Company of your employment
which is not properly effected pursuant to a Notice of
Termination and pursuant to any other requirements of this
Agreement, and for purposes of this Agreement, no such
purported termination will be effective;
g. any refusal by the Company to continue to allow you to attend
to matters or engage in activities not directly related to the
business of the Company which, at any time prior to the Change
in Control, you were not expressly prohibited in writing by
the Board from attending to or engaging in; or
h. the termination of your employment by the Company for any
reason other than death, Disability or Retirement during the
twelve (12) months following the month in which a Change in
Control occurs.
13. "NOTICE OF TERMINATION" means a written notice given on or after the
date of a Change in Control (unless your termination before the date of
the Change in Control was either a condition of the Change in Control
or was at the request or insistence of any Person related to the Change
in Control) which indicates the specific termination provision in this
Agreement pursuant to which the notice is given. Any purported
termination by the Company or by you for Good Reason on or after the
date of a Change in Control (or before the date of a Change in Control
if your termination was either a condition of the Change in Control or
was at the request or insistence of any Person related to the Change in
Control) must be communicated by written Notice of Termination to be
effective; provided, that your failure to provide Notice of Termination
will not limit any of your rights under this Agreement except to the
extent the Company demonstrates that it suffered material actual
damages by reason of such failure.
14. "PERSON" means any individual, corporation, partnership, group,
association or other "person," as such term is used in section 14(d) of
the Exchange Act, other than the Company, any Affiliate or any employee
benefit plan(s) sponsored by the Company or an Affiliate.
15. "PLAN" means any compensation plan, program, policy or agreement (such
as a stock option, restricted stock plan or other equity-based plan),
any bonus or incentive compensation plan, program, policy or agreement,
any employee benefit plan, program, policy or agreement (such as a
thrift, pension, profit sharing, medical, dental, disability, accident,
life insurance, relocation, salary continuation, expense
reimbursements, vacation or fringe benefits plan or policy) or any
other plan, program, policy or agreement of the Company intended to
benefit employees (and/or their families) generally, management
employees (and/or their families) as a group or you (and/or your
family) in particular.
16. "RETIREMENT" means termination of employment on or after the day on
which you attain the age of 65.
17. "SUCCESSOR" means any Person that succeeds to, or has the practical
ability to control (either immediately or solely with the passage of
time), the Company's business directly, by merger, consolidation or
other form of business combination, or indirectly, by purchase of the
Company's outstanding securities ordinarily having the right to vote at
the election of directors or, all or substantially all of its assets or
otherwise.
ARTICLE II.
TERM OF AGREEMENT
This Agreement is effective immediately and will continue in effect until May
11, 2001; provided, however; that commencing on May 11, 2001 and each May 11
thereafter, the term of this Agreement will automatically be extended for 12
additional months beyond the expiration date otherwise then in effect, unless at
least 90 calendar days prior to any such May 11, the Company or you has given
notice that this Agreement will not be extended; and, provided, further; that if
a Change in Control has occurred during the term of this Agreement, this
Agreement will continue in effect beyond the termination date then in effect for
a period of 12 months following the month during which the Change in Control
occurs or, if later, until the date on which the Company's obligations to you
arising under or in connection with this Agreement have been satisfied in full.
ARTICLE III.
CHANGE IN CONTROL BENEFITS
1. BENEFITS UPON A CHANGE IN CONTROL TERMINATION. You will become entitled
to the payments and benefits described in clauses (a) and (b) of this
Section 1 of Article III, subject to the limitations described in
clause (c) of this Section 1 of Article III, and to the benefit of the
provisions described in clause (c), if and only if (i) your employment
with the Company is terminated by the Company for any reason other than
death, Cause, Disability or Retirement, or if you terminate your
employment with the Company for any reason, including but not limited
to, Good Reason; and (ii) the termination occurs either within the
period beginning on the date of a Change in Control and ending on the
last day of the twelfth month that begins after the month during which
the Change in Control occurs or prior to a Change in Control if your
termination was either a condition of the Change in Control or was at
the request or insistence of a Person related to the Change in Control.
a. CASH PAYMENT. Within ten (10) business days following the Date
of Termination or, if later, within ten (10) business days
following the date of the Change in Control, the Company will
make a lump-sum cash payment to you in an amount equal to the
product of (i) your annual base salary in effect on the date
of the Change in Control multiplied by (ii) 2.
b. WELFARE PLANS. The Company will maintain in full force and
effect, for the continued benefit of you and your dependents
for a period terminating 24 months after the Date of
Termination, all insured and self-insured employee welfare
benefit Plans (including, without limitation, medical, life,
dental, vision and disability plans) in which you were
eligible to participate at any time during the 90-day period
immediately preceding the Change in Control, provided that
your continued participation is possible under the general
terms and provisions of such Plans and any applicable funding
media and without regard to
any discretionary amendments to such Plans by the Company
following the Change in Control (or prior to the Change in
Control if amended as a condition or at the request or
insistence of a Person (other than the Company) related to the
Change in Control) and provided that you continue to pay an
amount equal to your regular contribution under such Plans for
such participation (based upon your level of benefits and
employment status most favorable to you at any time during the
90-day period immediately preceding the Change in Control).
The continuation period under federal and state continuation
laws, to the extent applicable, will begin to run from the
date on which coverage pursuant to this clause (b) ends. If,
at the end of the 24-month period, you have not previously
received or are not then receiving equivalent benefits from a
new employer (including coverage for any pre-existing
conditions), the Company, pursuant to federal and state law,
will provide, for a period of eighteen (18) months (the "COBRA
Period"), a continuation of your and your dependents' coverage
under such Plans (the "COBRA Coverage"), provided that you
will be required to pay for such benefits during the COBRA
Period, should you elect to receive COBRA Coverage. .
c. LIMITATION ON PAYMENTS AND BENEFITS. Notwithstanding anything
in this Agreement to the contrary, if any of the payments or
benefits to be made or provided in connection with this
Agreement, together with any other payments, benefits or
awards which you have the right to receive from the Company,
or any corporation which is a member of an "affiliated group"
(as defined in section 1504(a) of the Code without regard to
section 1504(b) of the Code) of which the Company is a member
("Affiliate"), constitute an "excess parachute payment" (as
defined in section 280G(b) of the Code), two calculations will
be performed. In the first calculation, the payments, benefits
or awards will be reduced by the amount the Company deems
necessary so that none of the payments or benefits under the
Agreement (including from the existing Stock Option and
Incentive Plan) are excess parachute payments. In the second
calculation, the payments will not be reduced so as to
eliminate an excess parachute payment, but will be reduced by
the amount of the applicable excise tax as imposed by section
4999 of the Code. The two calculations will be compared and
the calculation providing the largest net payment to the
employee will be utilized. The calculations must be made in
good faith by legal counsel or a certified public accountant
selected by the Company, and such determination will be
conclusive and binding upon you and the Company. If a
reduction in payments or benefits is required by the
comparison above, the payments or benefits under the Agreement
shall be reduced in the order that minimizes the amount of
total reduction in payments and benefits under the Agreement
as a result of this provision.
2. DISPOSITION. If, on or after the date of a Change in Control, an
Affiliate is sold, merged, transferred or in any other manner or for
any other reason ceases to be an Affiliate or all or any portion of the
business or assets of an Affiliate are sold, transferred or otherwise
disposed of and the acquiror is not the Company or an Affiliate (a
"Disposition"), and you remain or become employed by the acquiror or an
affiliate of the acquiror (as defined in this Agreement but
substituting "acquiror" for "Company") in connection with the
Disposition, you will be deemed to have terminated employment on the
effective date of the Disposition for purposes of this section unless
(a) the acquiror and its affiliates jointly and severally expressly
assume and agree, in a manner that is
enforceable by you, to perform the obligations of this Agreement to the
same extent that the Company would be required to perform if the
Disposition had not occurred and (b) the Successor guarantees, in a
manner that is enforceable by you, payment and performance by the
acquiror.
ARTICLE IV.
INDEMNIFICATION
Following a Change in Control, the Company will indemnify and reimburse you to
the full extent permitted by law and the Company's articles of incorporation and
bylaws for damages, costs and expenses (including, without limitation,
judgments, fines, penalties, settlements and reasonable fees and expenses of
your counsel) incurred in connection with all matters, events and transactions
relating to your service to or status with the Company or any other corporation,
employee benefit plan or other entity with whom you served at the request of the
Company.
ARTICLE V.
CONFIDENTIALITY
You will not use, other than in connection with your employment with the
Company, or disclose any Confidential Information to any person not employed by
the Company or not authorized by the Company to receive such Confidential
Information, without the prior written consent of the Company; and you will use
reasonable and prudent care to safeguard and protect and prevent the
unauthorized disclosure of Confidential Information. Nothing in this Agreement
will prevent you from using, disclosing or authorizing the disclosure of any
Confidential Information: (a) which is or hereafter becomes part of the public
domain or otherwise becomes generally available to the public through no fault
of yours; (b) to the extent and upon the terms and conditions that the Company
may have previously made the Confidential Information available to certain
persons; or (c) to the extent that you are required to disclose such
Confidential Information by law or judicial or administrative process.
ARTICLE VI.
SUCCESSORS
The Company will seek to have any Successor, by agreement in form and substance
satisfactory to you, assent to the fulfillment by the Company of the Company's
obligations under this Agreement. Failure of the Company to obtain such assent
at least three business days prior to the time a Person becomes a Successor (or
where the Company does not have at least three business days' advance notice
that a Person may become a Successor, within one business day after having
notice that such Person may become or has become a Successor) will constitute
Good Reason for termination by you of your employment. The date on which any
such succession becomes effective will be deemed the Date of Termination and
Notice of Termination will be deemed to have been given on that date. A
Successor has no rights, authority or power with respect to this Agreement prior
to a Change in Control.
ARTICLE VII.
OTHER PROVISIONS
1. BINDING AGREEMENT. This Agreement inures to the benefit of, and is
enforceable by, you, your personal and legal representatives,
executors, administrators, successors, heirs, distributees,
devisees and legatees. If you die while any amount would still be
payable to you under this Agreement if you had continued to live, all
such amounts, unless otherwise provided in this Agreement, will be paid
in accordance with the terms of this Agreement to your devisee, legatee
or other designee or; if there be no such designee, to your estate.
2. NO MITIGATION. You will not be required to mitigate the amount of any
payments or benefits the Company becomes obligated to make or provide
to you in connection with this Agreement by seeking other employment or
otherwise. The payments or benefits to be made or provided to you in
connection with this Agreement may not be reduced, offset or subject to
recovery by the Company by any payments or benefits you may receive
from other employment or otherwise.
3. NO SETOFF. The Company has no right to delay or setoff payments or
benefits owed to you under this Agreement against amounts owed or
claimed to be owed by you to the Company under this Agreement or
otherwise.
4. TAXES. All payments and benefits to be made or provided to you in
connection with this Agreement will be subject to required withholding
of federal, state and local income, excise and employment-related
taxes.
5. NOTICES. For the purposes of this Agreement, notices and all other
communications provided for in, or required under, this Agreement must
be in writing and will 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 and addressed
to each party's respective address set forth on the first page of this
Agreement (provided that all notices to the Company must be directed to
the attention of the chair of the Board), or to such other address as
either party may have furnished to the other in writing in accordance
with these provisions, except that notice of change of address will be
effective only upon receipt.
6. DISPUTES. If you so elect, any dispute, controversy or claim arising
under or in connection with this Agreement will be settled exclusively
by binding arbitration administered by the American Arbitration
Association in Minneapolis, Minnesota in accordance with the Commercial
Arbitration Rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator's award in any court
having jurisdiction; provided, that you may seek specific performance
of your right to receive payment or benefits until the Date of
Termination during the pendency of any dispute or controversy arising
under or in connection with this Agreement. The Company will be
entitled to seek an injunction or restraining order in a court of
competent jurisdiction (within or without the State of Minnesota) to
enforce the provisions of Article V of this Agreement.
7. JURISDICTION. Except as specifically provided otherwise in this
Agreement, the parties agree that any action or proceeding arising
under or in connection with this Agreement must be brought in a court
of competent jurisdiction in the State of Minnesota, and hereby consent
to the exclusive jurisdiction of said courts for this purpose and agree
not to assert that such courts are an inconvenient forum
8. RELATED AGREEMENTS. To the extent that any provision of any other Plan
or agreement between the Company and you limits, qualifies or is
inconsistent with any provision of this Agreement, then for
purposes of this Agreement, while such other Plan or agreement remains
in force, the provision of this Agreement will control and such
provision of such other Plan or agreement will be deemed to have been
superseded, and to be of no force or effect, as if such other agreement
had been formally amended to the extent necessary to accomplish such
purpose. Nothing in this Agreement prevents or limits your continuing
or future participation in any Plan provided by the Company and for
which you may qualify, and nothing in this Agreement limits or
otherwise affects the rights you may have under any Plans or other
agreements with the Company. Amounts which are vested benefits or which
you are otherwise entitled to receive under any Plan or other agreement
with the Company at or subsequent to the Date of Termination will be
payable in accordance with such Plan or other agreement.
9. NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement is
intended to provide you with any right to continue in the employ of the
Company for any period of specific duration or interfere with or
otherwise restrict in any way your rights or the rights of the Company,
which rights are hereby expressly reserved by each, to terminate your
employment at any time for any reason or no reason whatsoever, with or
without cause.
10. FUNDING AND PAYMENT. Benefits payable under this Agreement will be paid
only from the general assets of the Company. No person has any right to
or interest in any specific assets of the Company by reason of this
Agreement. To the extent benefits under this Agreement are not paid
when due to any individual, he or she is a general unsecured creditor
of the Company with respect to any amounts due. The Company with whom
you were employed immediately before your Date of Termination has
primary responsibility for benefits to which you or any other person
are entitled pursuant to this Agreement but to the extent such Company
is unable or unwilling to provide such benefits, the Company and each
other Affiliate are jointly and severally responsible therefor to the
extent permitted by applicable law. If you were simultaneously employed
by more than one Company immediately before your Date of Termination,
each such Company has primary responsibility for a portion of the
benefits to which you or any other person are entitled pursuant to this
Agreement that bears the same ratio to the total benefits to which you
or such other person are entitled pursuant to this Agreement as your
base pay from the Company immediately before your Date of Termination
bears to your aggregate base pay from all such Companies.
11. SURVIVAL. The respective obligations of, and benefits afforded to, the
Company and you which by their express terms or clear intent survive
termination of your employment with the Company or termination of this
Agreement, as the case may be, including without limitation the
provisions of Articles III, IV, V and VI and Sections 3, 4, 5 and 6 of
Article VII of this Agreement, will survive termination of your
employment with the Company or termination of this Agreement, as the
case may be, and will remain in full force and effect according to
their terms.
ARTICLE VIII.
MISCELLANEOUS
1. MODIFICATION AND WAIVER. No provision of this Agreement may be
modified, waived or discharged unless such modification, waiver or
discharge is agreed to in a writing signed by you and the chair of the
Board. No waiver by any party to this Agreement at any time of any
breach by another party to this Agreement of, or of compliance with,
any condition or provision of this Agreement to be
performed by such party will be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or
subsequent time.
2. ENTIRE AGREEMENT. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter to this
Agreement have been made by any party which are not expressly set forth
in this Agreement.
3. GOVERNING LAW. This Agreement and the legal relations among the parties
as to all matters, including, without limitation, matters of validity,
interpretation, construction, performance and remedies, will be
governed by and construed exclusively in accordance with the internal
laws of the State of Minnesota (without regard to the conflict of laws
principles of any jurisdiction).
4. HEADINGS. Headings are for purposes of convenience only and do not
constitute a part of this Agreement.
5. FURTHER ACTS. The parties to this Agreement agree to perform, or cause
to be performed, such further acts and deeds and to execute and deliver
or cause to be executed and delivered, such additional or supplemental
documents or instruments as may be reasonably required by the other
party to carry into effect the intent and purpose of this Agreement.
6. SEVERABILITY. The invalidity or unenforceability of all or any part of
any provision of this Agreement will not affect the validity or
enforceability of the remainder of such provision or of any other
provision of this Agreement, which will remain in full force and
effect.
7. COUNTERPARTS. This Agreement may be executed in several counterparts,
each of which will be deemed to be an original, but all of which
together will constitute one and the same instrument.
If this letter correctly sets forth our agreement on the subject matter
discussed above, kindly sign and return to the Company the enclosed copy of this
letter which will then constitute our agreement on this subject.
Sincerely,
VITAL IMAGES, INC.
By:
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Name:
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Title:
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Agreed to this 11th day of May 2000.
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Employee
