_________________________________________________________________________
_________________________________________________________________________
EMPLOYMENT AGREEMENT
BY AND BETWEEN
CARIBINER INTERNATIONAL, INC.
AND
XXXXXXXX X. XXXXX
_________________________________________________________________________
_________________________________________________________________________
OCTOBER 14, 1996
EMPLOYMENT AGREEMENT (this "Agreement"), dated as of October 14, 1996, by
and between CARIBINER INTERNATIONAL, INC., a Delaware corporation having an
office at 00 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 ("Employer"), and
XXXXXXXX X. XXXXX, an individual having an address at 00000 Xxxxxx Xxxx Xxxxxx,
Xxxxxxxxxx, Xxxxxxx 00000 ("Employee").
W I T N E S S E T H:
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WHEREAS, pursuant to an Agreement of Purchase and Sale of Assets,
dated as of September 12, 1996, by and between Employer and General Electric
Capital Computer Leasing Corporation ("GECCLC"), Employer has acquired (the
"TAVS Acquisition") certain of the assets of Total Audio Visual Services ("GE-
TAVS"), an operating division of GECCLC;
WHEREAS, prior to the TAVS Acquisition, Employee had been employed by
GECCLC serving as Executive Vice President and General Manager of GE-TAVS; and
WHEREAS, Employer desires to engage Employee as an employee in its
business, and Employee desires to provide his services in connection with such
business and both parties desire to clarify and specify the rights and
obligations that each has with respect to the other in connection with such
employment.
NOW, THEREFORE, in consideration of the agreements and covenants herein set
forth, the parties hereby agree as follows:
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1. EMPLOYMENT
Employer hereby employs Employee as an Executive Vice President of Employer
and President of Total Audio Visual Services ("CI-TAVS"), a division of
Caribiner, Inc., a wholly-owned subsidiary of Employer ("Caribiner"), and
Employee hereby accepts such employment and agrees to render his services as an
employee of Employer and Xxxxxxxxx, for the term of this Agreement (as set forth
in Section 6 hereof), all subject to and on the terms and conditions herein set
forth.
2. DUTIES AND RESPONSIBILITIES OF EMPLOYEE
Employee shall be employed as an Executive Vice President of Employer and
President of CI-TAVS and Employee's duties and responsibilities shall be
commensurate with such titles. Upon Employer's request, Employee shall also
perform similar services in an identical executive capacity for Caribiner and
any other subsidiary or division of Employer as designated by Employer. In the
performance of his duties, Employee shall report to the Employer's Chairman or
Chief Executive Officer or President or any such other senior officer of
Employer designated by Employer's Board of Directors (the "Board") and shall
carry out the duties and responsibilities assigned to him by the Board or its
designee. Employee shall use his best efforts to maintain and enhance the
business and reputation of Employer. Employee shall be available to travel as
the reasonable needs of Employer shall require.
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3. EXCLUSIVITY OF SERVICE
Employee agrees to devote all of his business time, efforts and attention
to the business and affairs of Employer on an exclusive basis, and not to engage
in any other business activities for any person or entity, other than personal
investment activities and involvement in professional associations and
charitable activities, provided that such activities do not materially affect
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the performance of Employee's duties hereunder.
4. COMPENSATION; BONUS
(a) In consideration for his services to be performed under this Agreement
and as compensation therefor, Employee shall receive, in addition to all other
benefits provided in this Agreement, a base salary at the annual rate of Two
Hundred Ten Thousand Dollars ($210,000)(the "Base Salary") payable in bi-weekly
installments. Employee's performance and Base Salary shall be reviewed at least
annually by the Board and may, in the discretion of the Board, be increased (but
not decreased) following such review.
(b) In addition to the Base Salary, Employee shall be entitled to an annual
bonus, payable on approximately December 15 of each year, at the Tier II level
bonus pursuant to Employer's Performance Bonus Program as in effect for the
fiscal year ended immediately prior to the fiscal year in which such bonus is
actually paid.
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5. BENEFITS
In addition to the Base Salary and bonus provided for in Section 4 hereof,
Employee shall be entitled to the following benefits during and in respect of
the Term (as defined below):
(a) Employer shall provide to Employee, effective upon the commencement of
his employement with Employer, the hospitalization, medical and dental insurance
coverage and other benefits (including long-term disability and life insurance),
on the same basis as provided to the majority of the other executive vice
presidents of Employer or Caribiner in accordance with Employer's practices.
Employee shall be entitled to participate in Employer's 401(k) plan and other
similar plans adopted by Employer for similar employees. Employee shall be
entitled to family medical and dental insurance coverage at the rate charged
therefor by Employer.
(b) Employee shall be entitled to four (4) weeks paid vacation annually to
be taken by Employee at times mutually agreed upon by Employer and Employee, in
addition to all other holidays established as part of Employer's standard
practices.
(c) Employee shall be entitled to an automobile allowance in the amount of
Five Hundred Dollars ($500) per month, payable in equal installments during each
payroll period, to defray all costs incurred by Employee in connection with
Employee's use of his automobile in connection with the business of Employer
(except for those which Employee is entitled to reimbursement pursuant to
Section 5(d) below).
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(d) Employee shall be entitled to reimbursement for all reasonable travel,
entertainment and other reasonable expenses incurred in connection with
Employer's business, provided that such expenses are adequately documented and
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vouchered in accordance with Employer's policies.
(e) Promptly following the commencement of the Term (as defined in Section
6 hereof) of this Agreement, Employer shall grant to Employee options to
purchase an aggregate of 28,000 shares of Employer's common stock, par value
$0.01 per share, pursuant to Employer's 1996 Stock Option Plan (the "Plan") and
a Stock Option Agreement to be entered into by Employer and Employee in the form
adopted pursuant to the Plan.
6. TERM OF EMPLOYMENT
The term (the "Term") of Employee's employment hereunder shall commence on
the date hereof and shall continue for a period of three (3) years, unless
terminated prior thereto in accordance with Section 9 hereof.
7. CONFIDENTIALITY; INVENTIONS; DEVELOPMENT PRODUCTS, ETC.
(a) Employee agrees and covenants that he will not (without first obtaining
the written permission of Employer) (i) at any time during employment by
Employer and for a period of three years thereafter, divulge to any person or
entity, nor use (either himself or in connection with any business) any
"Confidential Information" (as hereinafter defined in Section (c) hereof)
obtained during the course of his employment and (ii) at
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any time during employment by Employer and thereafter, divulge to any person or
entity, nor use (either himself or in connection with any business) any "Trade
Secrets" (as hereinafter defined in Section (c) hereof to which he may have had
access or which had been revealed to him during the course of his employment,
unless such disclosure is pursuant to a court order, disclosure in litigation
involving the Employer or in any reports or applications required by law to be
filed with any governmental agency.
(b) Employee hereby grants to Employer or its nominee all rights of every
kind whatsoever, exclusively and perpetually, in and to all services performed,
products created and product ideas conceived by Employee for Employer or its
nominee, and hereby agrees, upon Employer's request therefor, to assign and
transfer to Employer or its nominee, any and all inventions, trade secrets,
product ideas, improvements, processes, Confidential Information and "know how"
relating to the business or products of Employer or any subsidiary or division
thereof, including any thereof which Employee may learn, possess or acquire
during Employee's employment by Employer, and Employee agrees that all such
things and such knowledge are, and will be the sole and exclusive property of
Employer or its nominee, and will be known or held by Employee only for the
benefit of Employer or its nominee. Any patent, trademark, servicemark or
copyright applications and patents, trademarks, servicemarks or copyrights
developed, obtained or conceived by Employee while employed or engaged by
Employer which relate to the business or product
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development activities of Employer or its nominee, as well as all physical
embodiments of Confidential Information, shall be and remain the sole exclusive
property of Employer, or its nominee. At Employer's request, Employee agrees to
execute any and all applications, assignments or other instruments which
Employer or its nominee shall deem necessary to apply for Letters Patent,
trademarks, servicemarks or copyrights or the United States or any foreign
country or to protect otherwise Employer's interest therein.
(c) As used in this Agreement, the term "Confidential Information" shall
mean and include all information and data in respect of Employer's (or any
subsidiary or division of Employer) operations, financial condition, products,
customers and business (including, without limitation, artwork, photographs,
specifications, facsimiles, samples, business, marketing or promotional plans,
creative written material and information relating to characters, concepts,
names, trademarks and copyrights) which may be communicated to Employee or to
which Employee may have access in the course of Employee's employment by
Employer. Notwithstanding the foregoing, the term "Confidential Information"
shall not include information which:
(i) is, at the time of the disclosure, a part of the public domain
through no act or omission by Employee;
(ii) was otherwise in Employee's lawful possession prior to the
disclosure; or
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(iii) is hereafter lawfully disclosed to Employee by a third party who
or which did not acquire the information under an obligation of
confidentiality to or through Employer.
As used in this Agreement, the term "Trade Secrets" shall mean and include
information, without regard to form, including, but not limited to, technical or
non-technical data, a formula, a pattern, a compilation, a program, a device, a
method, a technique, a drawing, a process, financial data, financial plans,
product plans, or a list of actual or potential customers or suppliers which is
not commonly known by or available to the public and which information (i)
derives economic value, actual or potential, from not being known to, and not
being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use; and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy.
Any combination of known information shall be within any of the foregoing
exclusions only if the combination as such is within such exclusions.
Nothing in this Section 7 shall limit any protection, definition or remedy
provided to Employer under any law, statute or legal principle relating to
Confidential Information or Trade Secrets.
(d) Xxxxxxxx agrees that at the time of leaving the employ of Employer he
will deliver to Employer and not deliver to anyone else any and all notes,
notebooks, drawings, memoranda,
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documents, and in general, any and all material relating to the business of
Employer (except Employee's personal files and records) or relating to any
employee, officer, director, agent or representative of Employer.
8. NON-COMPETITION; NON-SOLICITATION
(a) Employee hereby agrees and covenants that during the Term, he will not
directly or indirectly engage in or become interested (whether as an owner,
principal, agent, stockholder, member, partner, trustee, venturer, lender or
other investor, director, officer, employee, consultant or through the agency of
any corporation, limited liability company, partnership, association or agent or
otherwise) in any business or enterprise in the United States that shall, at the
time, be in whole or in substantial part competitive with any part of the
business conducted by Employer (or any subsidiary or division thereof) during
the period of Employee's employment with Employer (except that ownership of not
more than 1% of the outstanding securities of any class of any entity that are
listed on a national securities exchange or traded in the over-the-counter
market shall not be considered a breach of this Subsection (a)).
(b) Employee agrees and covenants that for a period of two (2) years
following his employment with Employer he will not (without first obtaining the
written permission of Employer), directly or indirectly, participate in the
solicitation of any business of any type conducted by Employer (or any
subsidiary or division thereof) during the period of Employee's employment with
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Employer from any person or entity that was a client or customer of Employer (or
any subsidiary or division thereof) with whom Employee has been involved in
servicing or soliciting on a regular basis, during the period of Employee's
employment with Employer, or was a prospective client or customer of Employer or
any subsidiary or division thereof, as the case may be, from which Employer or
any subsidiary or division thereof, as the case may be, solicited business (or
for which a proposal for submission was prepared) during the period of
Employee's employment with Employer.
(c) Employee agrees and covenants that for a period of two (2) years
following his employment with Employer he will not (without first obtaining the
written permission of Employer), directly or indirectly, form an association
with, employ, recruit for employment, offer to employ or induce to terminate his
employment with Employer, any person who is then employed by Employer.
9. TERMINATION
(A) CAUSE. Notwithstanding the terms of this Agreement, Employer may
discharge Employee and terminate this Agreement in the event that (i) Employee
shall fail to substantially perform his duties hereunder with reasonable
diligence or shall violate any material covenant of his herein contained, (ii)
Employee shall engage in an act of dishonesty in connection with his employment
or theft, (iii) Employee shall unreasonably refuse to carry out the lawful order
of Employer commensurate with
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Employee's duties to be performed hereunder or (iv) Employee shall be charged
with a felony involving moral turpitude or shall be convicted of, or plead
guilty or plead nolo contendere (or make any equivalent plea) in respect of, any
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governmental indictment, complaint or other formal allegation. Notwithstanding
the foregoing to the contrary, prior to discharging Employee pursuant to clauses
(i) or (iii) of the immediately preceding sentence, Employer shall give Employee
ten (10) days' prior written notice of any breach or failure and an opportunity
to cure any such breach or failure, or cease violating any covenant contained
herein, to the extent curable or ceaseable; provided, however, that no notice
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shall be required to be given in the event such breach, failure or violation is
not curable or ceaseable. In the event Employee is discharged pursuant to this
Section 9, Employee's compensation under Section 4 hereof and all benefits under
Section 5 hereof shall terminate immediately upon such discharge (subject to
applicable law such as COBRA), and Employer shall have no further obligation to
Employee except the payment to and reimbursement to Employee for any monies due
to Employee which right to payment or reimbursement accrued prior to such
discharge.
(B) INCAPACITY OR DISABILITY. Should Employee, in the reasonable judgment
of a physician chosen by the Board of Directors of Employer, become
incapacitated to the extent that he is unable to perform his duties pursuant to
this Agreement for a period of three (3) consecutive months by reason of
illness, disability, or other incapacity, Employer may terminate this
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Agreement upon one (1) month's notice after said three (3) month period. In such
event, Employee shall also be entitled to the prorated bonus, if any, payable
pursuant to Section 4(b) hereof.
(C) DEATH. This Agreement shall terminate immediately upon the death of
Employee, in which case Employee's legal representatives shall be entitled to
receive promptly a payment equal to one (1) month's Base Salary and any other
sums due Employee as of his death, including, without limitation, the prorated
bonus, if any, payable pursuant to Section 4(b) hereof.
10. VIOLATION OF OTHER AGREEMENTS
Employee represents and warrants to Employer that he is legally able to
enter into this Agreement and accept employment with Employer and that Employee
is not prohibited by the terms of any agreement, understanding or policy, from
entering into this Agreement; and the terms hereof will not and do not violate
or contravene the terms of any agreement, understanding or policy to which
Employee is or may be a party, or by which Employee may be bound. Employee
agrees that, as it is a material inducement to Employer that Employee make the
foregoing representations and that they be true in all respects, Employee shall
forever indemnify and hold Employer harmless from and against all liability,
costs or expenses (including attorney's fees and disbursements) on account of
the foregoing representations being untrue.
11. SPECIFIC PERFORMANCE; DAMAGES
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In the event of a breach or threatened breach of any or all of the
provisions of Section 7 or 8 hereof, Employee agrees that the injury which would
be suffered by Employer would be of a character which could not be fully
compensated for solely by a recovery of monetary damages. Accordingly, Employee
agrees that in the event of a breach or threatened breach of any or all of the
provisions of Section 7 or 8 hereof, in addition to and not in lieu of any
damages sustained by Employer and any other remedies which Employer may pursue
hereunder or under any applicable law, Employer shall have the right to
equitable relief, including issuance of a temporary or permanent injunction, by
any court of competent jurisdiction against the commission or continuance of any
such breach or threatened breach, without the necessity of proving any actual
damages or posting of any bond or other surety therefor. In addition to, and
not in limitation of the foregoing, Employee understands and confirms that, in
the event of a breach or threatened breach of Section 7 or 8 hereof, Employee
may be held financially liable to Employer for any loss suffered by Employer as
a result.
12. NOTICES
Any and all notices, demands or requests required or permitted to be given
under this Agreement shall be given in writing and sent, by registered or
certified U.S. mail, return receipt requested, by hand, or by overnight courier,
addressed to the parties hereto at their addresses set forth above or such other
addresses as they may from time-to-time designate by
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written notice, given in accordance with the terms of this Section, together
with copies thereof as follows:
In the case of Employer, with a copy to:
Xxxxxxxx Xxxx & Brandeis, LLP
000 Xxxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Attention: Xxxxxxx X. Xxxxxxxx, Esq.
In the case of Employee, with a copy to:
Xxxxx, Xxxx, Xxxxxxxx, Xxxxxxxx & Xxxxxx, P.C.
One Securities Centre, Suite 000
0000 Xxxxxxxx Xxxx
Xxxxxxx, Xxxxxxx 00000
Attention: Xxxxx X. Xxxx, Esq.
Notice given as provided in this Section shall be deemed effective: (i) on the
date hand delivered, (ii) on the first business day following the sending
thereof by overnight courier, and (iii) on the seventh calendar day (or, if it
is not a business day, then the next succeeding business day thereafter) after
the depositing thereof into the exclusive custody of the U.S. Postal Service.
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13. WAIVERS
No waiver by any party of any default with respect to any provision,
condition or requirement hereof shall be deemed to be a waiver of any other
provision, condition or requirement hereof; nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of
any such right accruing to it thereafter.
14. ARBITRATION
The parties agree that any dispute arising out of Section 9(a)(i) or
9(a)(iii) of this Agreement shall be arbitrated in Atlanta, Georgia in
accordance with the rules for commercial arbitration of the American Arbitration
Association or any successor thereof; provided, however, that the foregoing
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shall not prevent Employer from seeking equitable relief form a court of
competent jurisdiction as provided in Section 11 hereof.
Section 14 Agreed to:
/s/ LPG /s/ RSI
_________________ _________________
Employee initials Employer initials
15. PRESERVATION OF INTENT
Should any provision of this Agreement be determined by a court having
jurisdiction in the premises to be illegal or in conflict with any laws of any
state or jurisdiction or otherwise unenforceable, the Employer and Employee
agree that such
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provision shall be interpreted as broadly as possible so that the intent of this
Agreement may be legally carried out.
16. ENTIRE AGREEMENT
This Agreement sets forth the entire and only agreement or understanding
between the parties relating to the subject matter hereof and supersedes and
cancels all previous agreements, negotiations, letters of intent,
correspondence, commitments and representations in respect thereof among them,
and no party shall be bound by any conditions, definitions, warranties or
representations with respect to the subject matter of this Agreement except as
provided in this Agreement.
17. INUREMENT; ASSIGNMENT
The rights and obligations of Employer under this Agreement shall inure to
the benefit of and shall be binding upon any successor of Employer or to the
business of Employer, subject to the provisions hereof. Employer may assign
this Agreement to any person, firm or corporation controlling, controlled by, or
under common control with Employer. Neither this Agreement nor any rights or
obligations of Employee hereunder shall be transferable or assignable by
Employee.
18. AMENDMENT
This Agreement may not be amended in any respect except by an instrument in
writing signed by the parties hereto.
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19. HEADINGS
The headings in this Agreement are solely for convenience of reference and
shall be given no effect in the construction or interpretation of this
Agreement.
20. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which when taken together shall
constitute one and the same instrument.
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21. GOVERNING LAW
This Agreement shall be governed by, construed and enforced in accordance
with the internal laws of the State of New York, without giving reference to
principles of conflict of laws.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.
/s/ Xxxxxxxx X. Xxxxx
______________________________
XXXXXXXX X. XXXXX
CARIBINER INTERNATIONAL, INC.
/s/ Xxxxxxx X. Xxxxxxx
By:___________________________
Xxxxxxx X. Xxxxxxx
Chairman of the Board and
Chief Executive Officer
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