AMENDED AND RESTATED EMPLOYMENT AGREEMENT
Exhibit
10.31
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made,
entered into and effective as of December 10, 2008 (the “Effective Date”),
between GoFish Corporation (the “Company”), and Xxxxxx
Xxxxxx, an individual (the “Executive”).
WHEREAS,
the Company and the Executive previously entered into that certain Employment
Agreement dated October 30, 2006 (the “Original Employment
Agreement”) memorializing the terms and conditions of the Executive’s
employment by the Company in the position of Chief Accounting Officer and
Director of Operations (“CAO”);
and
WHEREAS,
the Company and the Executive desire to amend and restate the Original
Employment Agreement as hereinafter provided.
NOW,
THEREFORE, in consideration of the covenants and promises contained herein, the
Company and the Executive agree as follows:
1. Previous Employment
Agreement; Employment Period.
(a) This
Agreement supersedes the Original Employment Agreement and any other prior
agreements entered into between the Parties regarding the subject matter
hereof. Nothing in this Agreement shall affect the validity of the
stock option agreements entered into by and between Executive and Company (the
“Stock Option
Agreements”). In the event of a conflict between this Agreement and the
Stock Option Agreements, the terms of this Agreement shall prevail.
(b) The
Company offers to employ the Executive, and the Executive agrees to be employed
by Company, in accordance with the terms and subject to the conditions of this
Agreement. The Company and the Executive agree that the Executive is employed
“at will” which means that the employment relationship may be terminated by
either party at any time, for any reason or no reason, subject to the provisions
of Section 11 below (the period during which the Executive is employed by the
Company hereinafter referred to as the “Employment Period”).
The Executive affirms that no obligation exists between the Executive and any
other entity which would prevent or impede the Executive’s immediate and full
performance of every obligation of this Agreement.
2. Position and Duties.
During the term of the Executive’s employment hereunder, the Executive shall
continue to serve in, and assume duties and responsibilities consistent with,
the position of CAO of a public company, which may include, but are not limited
to, serving a key executive role in the overall leadership, management, and
strategic direction of the Company, assuming responsibility for the overall
financial management of the Company, and managing operations vital to the
organization, including human resources, administration, and risk management, as
the Chief Executive Officer of the Company shall determine from time to time.
The Executive agrees to devote to the Company substantially all of his working
time, skill, energy and best business efforts during the term of his employment
with the Company, and the Executive shall not engage in business activities
outside the scope of his employment with the Company if such activities would
detract from or interfere with his ability to fulfill his responsibilities and
duties under this Agreement or require substantial amounts of his time or of his
services.
3. No Conflicts. The
Executive covenants and agrees that for so long as he is employed by the
Company, he shall inform the Company of each and every future business
opportunity presented to the Executive that arises within the scope of the
business of the Company and would be feasible for the Company, and that he will
not, directly or indirectly, exploit any such opportunity for his own
account.
4. Hours of Work. The
Executive’s normal days and hours of work shall coincide with the Company’s
regular business hours. The nature of the Executive’s employment with the
Company requires flexibility in the days and hours that the Executive must work,
and may necessitate that the Executive work on other or additional days and
hours.
5. Location. The locus
of the Executive’s employment with the Company shall be San Francisco,
California and, from time to time as determined by the Company, any other locus
where the Company now or hereafter has a business facility.
6. Compensation.
(a) Base Salary. During
the term of this Agreement, the Company shall pay, and the Executive agrees to
accept, in consideration for the Executive’s services hereunder, pro rata payments, twice a
month, of the annual salary of $160,000, less all applicable taxes and other
appropriate deductions.
The Compensation Committee (the “Compensation
Committee”) of the Board of Directors (the “Board”) shall also
review the Executive’s base salary annually and shall make a recommendation to
the Board as to whether such base salary should be increased but not decreased,
which decision shall be within the Board’s sole discretion.
(b) Annual Bonus. During
the term of this Agreement, the Executive shall be entitled to an annual bonus
to be determined in consultation with the Board, as follows:
(i) If the Executive accomplishes
goals to be determined by the Company’s CEO in consultation with the Executive
during a calendar year, the Executive will be entitled to an annual bonus of up
to 15% of the Executive’s then-current base salary.
(ii) The annual bonus set forth in
Section 6(b)(i) above shall be paid by the Company to the Executive on or before
April 15th, and in
any event upon completion of the Company’s audit, following the calendar year of
the Employment Period in which such bonus was earned.
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7. Expenses. During the
term of this Agreement, the Executive shall be entitled to payment or
reimbursement of any reasonable expenses paid or incurred by him in connection
with and related to the performance of his duties and responsibilities hereunder
for the Company, in accordance with the Company’s policies, as they may be
amended from time to time. All requests by the Executive for payment or
reimbursement of such expenses shall be supported by appropriate invoices,
vouchers, receipts or such other supporting documentation in such form and
containing such information as the Company may from time to time require,
evidencing that the Executive, in fact, incurred or paid said
expenses.
8. Vacation. During the
term of this Agreement, the Executive shall be entitled to accrue, on a pro rata basis, 20 vacation
days per year, as a combination of Paid Time Off and Paid Vacation allocation.
The Executive shall be entitled to carry over any accrued, unused Paid Vacation
days and Paid Time Off from year to year, subject to Company
policy.
9. Stock
Options.
(a) Grant of Option. The
Company previously granted to the Executive an option to purchase an aggregate
of 62,500 shares of the Company’s common voting stock (the “Option”) under the
Company’s 2006 Equity Incentive Plan (the “Equity Incentive
Plan”). Such grant was evidenced by an Option Agreement as contemplated
by the Equity Incentive Plan. In subsequent years the Executive shall be
eligible for such grants of Options and other permissible awards (collectively
with the Options, “Awards”) under the
Equity Incentive Plan and such other stock incentive plans as may be adopted
from time to time by the Company, as the Compensation Committee or the Board
shall determine.
(b) Option Price; Term.
The exercise price of the Option is $1.50 per share, and the term of the Option
is ten years from the date of grant.
(c) Option Vesting and
Exercise. Twenty-five percent (25%) of the Option vested and became
exercisable on the first anniversary of the date of the grant of the Option. On
the last day of each month thereafter, continuing to the fourth anniversary of
the date of the grant of the Option, an additional one forty-eighth of the
Option shall vest, subject to Section 9(d).
(d) Termination of Service;
Accelerated Vesting.
(i) If the Executive’s employment
is terminated for Cause, as such term is defined below, all Awards, whether or
not vested, shall immediately expire effective the date of termination of
employment.
(ii) If the Executive’s employment
is terminated voluntarily by the Executive without Good Reason, as such term is
defined below, all unvested Awards shall immediately expire effective the date
of termination of employment. Vested Awards, to the extent unexercised, shall
expire one month after the termination of employment.
(iii) Except
as set forth in Section 9(d)(iv), if the Executive’s employment is terminated
(i) by the Company without Cause, as defined below; (ii) by the Executive for
Good Reason, as defined below; or (iii) upon death or Disability, as defined
below, all unvested Awards shall immediately expire and the vested Awards, to
the extent unexercised, shall expire one year after any such
event.
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(iv) If the Executive’s employment
is terminated as a result of a circumstance contemplated in Section 11(e)(i)(C),
all unvested Awards shall immediately vest and become exercisable effective on
the date of termination of employment, and to the extent unexercised, shall
expire one year after any such event.
(e) Payment. The full
consideration for any shares purchased by the Executive upon exercise of the
Options shall be paid in cash.
10. Other
Benefits.
(a) During the term of this
Agreement, the Executive shall be eligible to participate in incentive, savings,
retirement (401(k)), and welfare benefit plans, including, without limitation,
health, medical, dental, vision, life (including accidental death and
dismemberment) and disability insurance plans (collectively, “Benefit Plans”), in
substantially the same manner, including but not limited to responsibility for
the cost thereof, and at substantially the same levels, as the Company makes
such opportunities available to all of the Company’s managerial or salaried
executive employees.
(b) The Executive’s spouse and
dependent minor children will be covered under the Benefit Plans providing
health, medical, dental, and vision benefits, in substantially the same manner,
including but not limited to responsibility for the cost thereof, and at
substantially the same levels, as the Company makes such opportunities available
to the spouses and dependent minor children to all of the Company’s managerial
or salaried executive employees.
(c) Until such time as the
Executive becomes covered by Company medical coverage, the Company shall
reimburse the Executive for the Executive’s medical insurance premiums for
coverage currently in place.
11. Termination of
Employment.
(a) Death. In the event
that during the term of this Agreement the Executive dies, this Agreement and
the Executive’s employment with the Company shall automatically terminate and a
Separation (as defined in Section 16(k) hereof) shall occur and the Company
shall have no further obligations or liability to the Executive or his heirs,
administrators or executors with respect to compensation and benefits accruing
thereafter, except for the obligation to pay the Executive’s heirs,
administrators or executors any earned but unpaid base salary, unpaid pro rata annual bonus, and
unused paid time off and vacation days accrued through the date of death, and to
reimburse, pursuant to Section 7, any expenses incurred through the date of
death; provided, that
nothing contained in this paragraph shall be deemed to excuse any breach by the
Company of any provision of this Agreement. All payments due hereunder shall be
made within 45 days after the Executive’s death; provided, however, that payment
of any pro rata annual
bonus shall be made as specified in Section 11(g). The Company shall deduct,
from all payments made hereunder, all applicable taxes, including income tax,
FICA and FUTA, and other appropriate deductions.
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(b) “Disability.” In the
event that, during the term of this Agreement, the Executive shall be prevented
from performing his duties and responsibilities hereunder to the full extent
required by the Company by reason of Disability (as defined below) this
Agreement and the Executive’s employment with the Company shall automatically
terminate and a Separation (as defined in Section 16(k) hereof) shall occur and
the Company shall have no further obligations or liability to the Executive or
his heirs, administrators or executors with respect to compensation and benefits
accruing thereafter, except for the obligation to pay the Executive or his
heirs, administrators or executors any earned but unpaid base salary, unpaid
pro rata annual bonus
and unused paid time off and vacation days accrued through the Executive’s last
date of employment with the Company, and to reimburse, pursuant to Section 7,
any expenses incurred through the Executive’s last day of employment with the
Company; provided, that
nothing contained in this paragraph shall be deemed to excuse any breach by the
Company of any provision of this Agreement. All payments due hereunder shall be
made within 15 days after the date of termination of the Executive’s employment;
provided, however, that
payment of any pro rata
annual bonus shall be made as specified in Section 11(g). The Company shall
deduct, from all payments made hereunder, all applicable taxes, including income
tax, FICA and FUTA, and other appropriate deductions through the last date of
the Executive’s employment with the Company. For purposes of this Agreement,
“Disability”
shall mean a physical or mental disability that prevents the performance by the
Executive, with or without reasonable accommodation, of his duties and
responsibilities hereunder for a period of not less than an aggregate of three
months during any twelve consecutive months, unless otherwise prohibited by
law.
(c) “Cause.”
(i) At any time during the term of
this Agreement, the Company may terminate this Agreement and the Executive’s
employment hereunder for “Cause.” For purposes of this Agreement, “Cause” shall be
defined as the occurrence of: (A) gross neglect, malfeasance or gross
insubordination in performing the Executive’s duties under this Agreement; (B)
the Executive’s conviction of, or plea of “guilty” or “no contest” to a felony
under the laws of the United States or of any state thereof, excluding
convictions associated with traffic violations; (C) an egregious act of
dishonesty (including without limitation theft or embezzlement) or a malicious
action by the Executive toward the Company’s customers or employees; (D) a
material breach of any agreement between Executive and the Company, including a
violation of any provision of Sections 12 and 13 hereof; (E) intentional
reckless conduct that is materially detrimental to the business or reputation of
the Company; (F) material failure, other than by reason of Disability, to carry
out reasonably assigned duties or instructions consistent with the title of
Chief Accounting Officer (provided that material failure to carry out
reasonably assigned duties shall be deemed to constitute Cause only after a
finding by the Board of Directors, or a duly constituted committee thereof, of
material failure on the part of the Executive and the failure to remedy such
performance to the Board’s or the committee’s satisfaction within 30 days after
delivery of written notice to the Executive of such finding setting forth those
duties that are not being performed by the Executive); or (G) Executive’s
unauthorized use or disclosure of the Company’s trade secrets.
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(ii) Upon termination of this
Agreement for Cause, the Company shall have no further obligations or liability
to the Executive or his heirs, administrators or executors with respect to
compensation and benefits thereafter, except for the obligation to pay the
Executive any earned but unpaid base salary, unpaid pro rata annual bonus, and
unused paid time off and vacation days accrued through the Executive’s last day
of employment with the Company, and to reimburse, pursuant to Section 7, any
expenses incurred through the Executive’s last day of employment with the
Company. All payments due hereunder shall be made within 15 days after the date
of termination of the Executive’s employment; provided, however, that payment of
any pro rata annual
bonus shall be made as specified in Section 11(g). The Company shall deduct,
from all payments made hereunder, all applicable taxes, including income tax,
FICA and FUTA, and other appropriate deductions.
(d) Change of Control.
For purposes of this Agreement, “Change of Control”
means “Change in Control” as defined on the date hereof in the Company’s 2007
Non-Quailfied Option Plan.
(e) “Good
Reason.”
(i) At any time during the term of
this Agreement, subject to the conditions set forth in Section 11(e)(ii) below,
the Executive may terminate this Agreement and the Executive’s employment with
the Company for “Good Reason.” For purposes of this Agreement, “Good Reason” shall
mean the occurrence of any of the following events occurring without Executive’s
consent and resulting in a Separation: (A) the assignment to the Executive of
duties that are materially different from, and that result in a substantial
diminution of, the duties that he assumed on the Effective Date; (B) a change to
the principal place of the performance of the Executive’s duties to a location
more than 50 miles from San Francisco, California without the Executive’s prior
written consent; or (C) material breach by the Company of this Agreement. A
termination of employment by the Executive shall not be deemed to be for “Good
Reason” unless such termination occurs within 12 months after one of the
foregoing conditions has come into existence without Executive’s consent; further provided that
a condition will not be deemed to constitute “Good Reason” unless the Executive
provides the Company written notice of the condition within 90 days after the
condition comes into existence and the Company fails to remedy such condition
within 30 days after receiving such written notice.
(ii) In the event that the
Executive terminates this Agreement and his employment with the Company for Good
Reason, the Company shall pay or provide to the Executive (or, following his
death, to the Executive’s heirs, administrators or executors): (A) any earned
but unpaid base salary, unpaid pro rata annual bonus, and
unused paid time off and vacation days accrued through the Executive’s last day
of employment with the Company, as well as reimbursement, pursuant to Section 7,
of any expenses incurred through the Executive’s last day of employment with the
Company; and (B) severance in an amount equal to three months’ base salary, as
in effect immediately prior to the Executive’s termination hereunder. All
payments due hereunder shall be made within 15 days after the date of
termination of the Executive’s employment; provided, however, that no payments
shall be made until the release in Subsection 11(e)(iv) has become effective,
the Executive has returned all Company property in his possession, and (to the
extent applicable) the Executive has resigned as a member of the Boards of
Directors of the Company and all of its subsidiaries, no later than the deadline
for returning the release as provided in Section 11(e)(iv) below. The
payment of any pro rata
annual bonus shall be made as specified in Section 11(g). The Company shall
deduct, from all payments made hereunder, all applicable taxes, including income
tax, FICA and FUTA, and other appropriate deductions.
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(iii) The Executive shall have no
duty to mitigate his damages.
(iv) Executive
agrees to execute a general release of all claims that Executive may have
against the Company or persons affiliated with the Company. The
release must be in the form reasonably agreed to by the Executive and the
Company. The Company will deliver the form to the Executive within 30
days after the Executive’s Separation. The Executive must execute and
return the release within the period set forth in the prescribed
form.
(f) Without “Cause” or “Good
Reason.”
(i) By The Executive. At
any time during the term of this Agreement, the Executive shall be entitled to
terminate this Agreement and the Executive’s employment with the Company without
Good Reason by providing prior written notice of at least 30 days to the
Company. Upon termination by the Executive of this Agreement and the Executive’s
employment with the Company without Good Reason, the Company shall have no
further obligations or liability to the Executive or his heirs, administrators
or executors with respect to compensation and benefits thereafter, except for
the obligation to pay the Executive any earned but unpaid base salary and unused
paid time off and vacation days accrued through the Executive’s last day of
employment with the Company, and to reimburse, pursuant to Section 7, any
expenses incurred through the Executive’s last day of employment with the
Company. All payments due hereunder shall be made within 15 days after the date
of termination of the Executive’s employment. The Company shall deduct, from all
payments made hereunder, all applicable taxes, including income tax, FICA and
FUTA, and other appropriate deductions.
(ii) By The Company. At
any time during the term of this Agreement, the Company shall be entitled to
terminate this Agreement and the Executive’s employment with the Company without
Cause by providing prior written notice of at least 30 days to the Executive.
Upon termination by the Company of this Agreement and the Executive’s employment
with the Company without Cause, the Company shall pay or provide to the
Executive (or, following his death, to the Executive’s heirs, administrators or
executors): (A) any earned but unpaid base salary, unpaid pro rata annual bonus, and
unused paid time off and vacation days accrued through the Executive’s last day
of employment with the Company, as well as reimbursement, pursuant to Section 7,
of any expenses incurred through the Executive’s last day of employment with the
Company, and (B) severance in an amount equal to three month’s base salary, as
in effect immediately prior to the Executive’s Separation hereunder. All
payments due hereunder shall be made within 15 days after the date of
Executive’s Separation; provided, however, that any severance may be paid not
later than 30 days after the release described in Section 11(e)(iv) has become
effective, provided that Executive has returned all Company property in his
possession, and (to the extent applicable) the Executive has resigned as a
member of the Boards of Directors of the Company and all of its subsidiaries, no
later than the deadline for returning the release as provided in Section
11(e)(iv) above. The Company shall deduct, from all payments made hereunder, all
applicable taxes, including income tax, FICA and FUTA, and other appropriate
deductions. The Company’s obligations under this Section 11(f)(ii)
shall be subject to the Executive’s execution of the release described in
Section 11(e)(vi).
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(g) Pro
Rata Bonus
After Termination. In the event the Executive’s employment terminates
pursuant to Sections 11(a), 11(b), 11(c) or 11(f)(ii), the Company will, at the
time specified in Section 6(b)(ii), pay any pro rata annual bonus earned
pursuant to Section 6(b)(i) prior to the termination of employment. For example
only, and not by way of limitation, if the Executive’s employment terminated on
October 1, 2007 pursuant to Section 11(f)(ii), any annual bonus earned pursuant
to Section 6(b)(i) prior to such termination would be paid by the Company to the
Executive on or before April 15, 2008, and in any event upon completion of the
Company’s audit.
(h) As
a precondition to receiving any payments or benefits described in Sections 9(d)
and 11, Employee agrees to execute a general release of all claims that Employee
may have against the Employer or persons affiliated with the
Employer. The release must be in the form reasonably agreed to by the
Employee and the Employer. The Employer will deliver the form to the
Employee within 30 days after the Employee’s Separation. The Employee
must execute and return the release within the period set forth in the
prescribed form.
12. Confidential
Information.
(a) The Executive expressly
acknowledges that, in the performance of his duties and responsibilities with
the Company, he has been exposed since prior to the Effective Date, and will be
exposed, to the trade secrets, business and/or financial secrets, and
confidential and proprietary information of the Company, its affiliates and/or
its clients, business partners or customers (“Confidential
Information”). The term “Confidential Information” includes information
or material that has actual or potential commercial value to the Company, its
affiliates and/or its clients, business partners or customers and is not
generally known to and is not readily ascertainable by proper means to persons
outside the Company, its affiliates and/or its clients or customers.
Notwithstanding any other provision of this Agreement, Confidential Information
does not include any information which: (i) the Executive can show was already
in his possession prior to the receipt of such information from the Company;
(ii) is now or shall become public information or otherwise generally available
to the public through no fault of the Executive; (iii) the Executive can show
was received by him without restriction from a third party which is lawfully in
possession of such information and is not in breach of any confidential
relationship with the Company; or (iv) the Executive can show was independently
developed by him or a person or entity affiliated with him without the use of
any Confidential Information.
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(b) Except as authorized in
writing by the Board, during the performance of the Executive’s duties and
responsibilities for the Company and until such time as any such Confidential
Information becomes generally known to and readily ascertainable by proper means
to persons outside the Company, its affiliates and/or its clients, business
partners or customers, the Executive agrees to keep strictly confidential and
not use for his personal benefit or the benefit to any other person or entity
(other than the Company) Confidential Information. “Confidential Information”
includes the following, whether or not expressed in a document or medium,
regardless of the form in which it is communicated, and whether or not marked
“trade secret” or “confidential” or any similar legend: (i) lists of and/or
information concerning customers, prospective customers, suppliers, employees,
consultants, co-venturers and/or joint venture candidates of the Company, its
affiliates or its clients or customers; (ii) information submitted by customers,
prospective customers, suppliers, employees, consultants and/or co-venturers of
the Company, its affiliates and/or its clients or customers; (iii) non-public
information proprietary to the Company, its affiliates and/or its clients or
customers, including, without limitation, cost information, profits, sales
information, prices, accounting, unpublished financial information, business
plans or proposals, expansion plans, markets and marketing methods, advertising
and marketing strategies, administrative procedures and manuals, the terms and
conditions of the Company’s contracts and trademarks and patents under
consideration, distribution channels, franchises, investors, sponsors and
advertisers; (iv) proprietary technical information concerning products and
services of the Company, its affiliates and/or its clients, business partners or
customers, including, without limitation, product data and specifications,
diagrams, flow charts, know how, processes, designs, formulae, inventions and
product development; (v) lists of and/or information concerning applicants,
candidates or other prospects for employment, independent contractor or
consultant positions at or with any actual or prospective customer or client of
Company and/or its affiliates, any and all confidential processes, inventions or
methods of conducting business of the Company, its affiliates and/or its
clients, business partners or customers; (vi) acquisition or merger targets;
(vii) business plans or strategies, data, records, financial information or
other trade secrets concerning the actual or contemplated business, strategic
alliances, policies or operations of the Company or its affiliates; (viii) any
and all versions of proprietary computer software (including source and object
code), hardware, firmware, code, discs, tapes, data listings and documentation
of the Company; or (ix) any other confidential information disclosed to the
Executive by, or which the Executive obligated under a duty of confidence from,
the Company, its affiliates, and/or its clients, business partners or
customers.
(c) The Executive affirms that he
does not possess and will not rely upon the protected trade secrets or
confidential or proprietary information of his prior employer(s) in providing
services to the Company. Executive further represents and warrants
that his execution of this Agreement, his employment with the Company, and the
performance of his proposed duties under this Agreement shall not violate any
obligations he may have to any other employer, person or entity, including any
obligations with respect to proprietary or confidential information of any other
person or entity.
(d) In the event that the
Executive’s employment with the Company terminates for any reason, the Executive
shall deliver forthwith to the Company any and all originals and copies of
Confidential Information or any other Company property.
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13. Non-Competition And
Non-Solicitation.
(a) The Executive agrees and
acknowledges that by virtue of his position in the Company, he is familiar with
and in possession of the Company’s trade secrets, customer information and other
Confidential Information which are valuable to the Company and that their
goodwill, protection and maintenance constitute a legitimate business interest
of the Company, to be protected by the non-competition restrictions set forth
herein. The Executive agrees and acknowledges that the non-competition
restrictions set forth herein are reasonable and necessary and do not impose
undue hardship or burdens on the Executive. The Executive also acknowledges that
the products and services developed or provided by the Company, its affiliates
and/or its clients or customers are or are intended to be sold, provided,
licensed and/or distributed to customers and clients in and throughout the
United States (the “Geographic Boundary”)
(to the extent the Company comes to own or operate any material asset in other
areas of the United States during the term of Executive’s employment, the
definition of Geographic Boundary shall be expanded to cover such other areas),
and that the Geographic Boundary, scope of prohibited competition, and time
duration set forth in the non-competition restrictions set forth below are
reasonable and necessary to maintain the value of the Confidential Information
of, and to protect the goodwill and other legitimate business interests of, the
Company, its affiliates and/or its clients or customers.
(b) The Executive agrees that the
Company will be irreparably damaged if the Executive were, during the one-year
period following the termination of the Executive’s employment with the Company
for any reason, to, directly or indirectly through another person, recruit,
solicit, interfere with or hire any employee or independent contractor of the
Company, employed by or working at the Company at the time of Executive’s
termination, to leave the employment (or independent contractor relationship)
thereof, whether or not any such employee or independent contractor is party to
an employment agreement. The Company acknowledges that this Section will not be
violated by general advertising or general solicitations that are not targeted
or directed specifically to employees of the Company, nor by the consideration
or acceptance of unsolicited applications for employment by such individuals.
Therefore, the Executive hereby agrees and covenants that he shall not, in the
Geographic Boundary, without the prior written consent of the Company, directly
or indirectly, in any capacity whatsoever, including, without limitation, as an
executive, employer, consultant, principal, partner, shareholder, officer,
director or any other individual or representative capacity (other than a holder
of less than five percent (5%) of the outstanding voting shares of any publicly
held company), or whether on the Executive’s own behalf or on behalf of any
other person or entity or otherwise howsoever, during the Executive’s employment
with the Company and for a period equal to one year following the termination of
this Agreement or the Executive’s employment with the Company is terminated for
any reason, recruit, solicit, interfere with or hire any employee or independent
contractor of the Company to leave the employment (or independent contractor
relationship) thereof, whether or not any such employee or independent
contractor is party to an employment agreement.
(c) The Executive agrees that the
Company will be irreparably damaged if the Executive were to use the Company’s
Confidential Information, trade secrets, or any other means that would amount to
unfair competition, to directly or indirectly through another person, attempt in
any manner to solicit or interfere with any relationship, contractual or
otherwise between the Company and any other party, including, without
limitation, any supplier, co-venturer or joint venturer of the Company, or
accept from any customer of the Company, with whom the Executive had significant
contact during the term of the Agreement, business of the kind or competitive
with the business done by the Company with such customer or to persuade or
attempt to persuade any such customer to cease to do business or to reduce the
amount of business which such customer has customarily done or is reasonably
expected to do with the Company.
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14. Dispute Resolution.
The Executive and the Company agree that any dispute or claim, whether based on
contract, tort, discrimination, retaliation, or otherwise, relating to, arising
from, or connected in any manner with this Agreement or with the Executive’s
employment with or termination from the Company shall be resolved exclusively
through final and binding arbitration under the auspices of the American
Arbitration Association (“AAA”). The
arbitration shall be held in San Francisco, California. The arbitration shall
proceed in accordance with the National Rules for the Resolution of Employment
Disputes of the AAA in effect at the time the claim or dispute arose, unless
other rules are agreed upon by the parties. The arbitration shall be conducted
by one arbitrator who is a member of the AAA, unless the parties mutually agree
otherwise. The arbitrators shall have jurisdiction to determine any claim,
including the arbitrability of any claim, submitted to them. The arbitrators may
grant any relief authorized by law for any properly established claim. The
interpretation and enforceability of this paragraph of this Agreement shall be
governed and construed in accordance with the United States Federal Arbitration
Act, 9. U.S.C. § 1, et
seq. More specifically, the parties agree to submit to binding
arbitration any claims for unpaid wages or benefits, or for alleged
discrimination, harassment, or retaliation, arising under Title VII of the Civil
Rights Act of 1964, the Equal Pay Act, the National Labor Relations Act, the Age
Discrimination in Employment Act, the Americans With Disabilities Act, the
Employee Retirement Income Security Act, the Civil Rights Act of 1991, the
Family and Medical Leave Act, the Fair Labor Standards Act, Sections 1981
through 1988 of Title 42 of the United States Code, COBRA, misappropriation of
trade secrets, theft, embezzlement, and any other federal, state, or local law,
regulation, or ordinance, and any common law claims, claims for breach of
contract, or claims for declaratory relief. The Executive acknowledges that the
purpose and effect of this paragraph is solely to elect private arbitration in
lieu of any judicial proceeding he might otherwise have available to him in the
event of an employment-related dispute between him and the Company. THEREFORE,
THE EXECUTIVE AND THE COMPANY HEREBY WAIVE THEIR RIGHTS TO HAVE ANY SUCH
EMPLOYMENT-RELATED DISPUTES HEARD BY A COURT OR JURY, AS THE CASE MAY BE, AND
AGREE THAT THEIR EXCLUSIVE PROCEDURE TO REDRESS ANY EMPLOYMENT-RELATED CLAIMS
WILL BE ARBITRATION.
11
15. Notice. For purposes
of this Agreement, notices and all other communications provided for in this
Agreement or contemplated hereby shall be in writing and shall be deemed to have
been duly given when personally delivered, delivered by a nationally recognized
overnight delivery service or when mailed United States Certified or registered
mail, return receipt requested, postage prepaid, and addressed as
follows:
If to the Company:
GoFish Corporation
000 Xxxxx Xxxxxx
Xxxxx
000
Xxx
Xxxxxxxxx, XX 00000
(000)
000-0000 (facsimile)
(000)
000-0000 (direct)
If to the Executive:
[Omitted]
Any party
may change the address to which communications hereunder are to be delivered by
giving the other party notice in the manner herein set forth.
16. Miscellaneous.
(a) All issues and disputes
concerning, relating to or arising out of this Agreement and from the
Executive’s employment by the Company, including, without limitation, the
construction and interpretation of this Agreement, shall be governed by and
construed in accordance with the internal laws of the State of California,
without giving effect to the principles of conflicts of law or choice of law of
any jurisdiction.
(b) The Executive and the Company
agree that any provision of this Agreement deemed unenforceable or invalid may
be reformed to permit enforcement of the objectionable provision to the fullest
permissible extent. Any provision of this Agreement deemed unenforceable after
modification shall be deemed stricken from this Agreement, with the remainder of
the Agreement being given its full force and effect.
(c) The Company shall be entitled
to equitable relief, including injunctive relief and specific performance as
against the Executive, for the Executive’s threatened or actual breach of
Sections 12 or 13 of this Agreement, as money damages for a breach thereof would
be incapable of precise estimation, uncertain, and an insufficient remedy for an
actual or threatened breach of Sections 12 or 13 of this Agreement. The
Executive and the Company agree that any pursuit of equitable relief in respect
of Sections 12 or 13 of this Agreement shall have no effect whatsoever regarding
the continued viability and enforceability of Section 14 of this
Agreement.
(d) Any waiver or inaction by the
Company or the Executive for any breach of this Agreement shall not be deemed a
waiver of any subsequent breach of this Agreement.
(e) The Executive and the Company
independently have made all inquiries regarding the qualifications and business
affairs of the other which either party deems necessary. The Executive affirms
that he fully understands this Agreement’s meaning and legally binding effect.
Each party has participated fully and equally in the negotiation and drafting of
this Agreement. Each party assumes the risk of any misrepresentation or mistaken
understanding or belief relied upon by him or it in entering into this
Agreement.
12
(f) The Executive’s obligations
under this Agreement are personal in nature and may not be assigned by the
Executive to any other person or entity.
(g) This instrument constitutes
the entire Agreement between the parties regarding its subject matter. When
signed by all parties, this Agreement supersedes and nullifies all prior or
contemporaneous conversations, negotiations, or agreements, oral and written,
regarding the subject matter of this Agreement. In any future construction of
this Agreement, this Agreement should be given its plain meaning. This Agreement
may be amended only by a writing signed by the Company and the
Executive.
(h) This Agreement may be executed
in counterparts. A counterpart transmitted via facsimile, and all executed
counterparts, when taken together, shall constitute sufficient proof of the
parties’ entry into this Agreement. The parties agree to execute any further or
future documents which may be necessary to allow the full performance of this
Agreement. This Agreement contains headings for ease of reference. The headings
have no independent meaning.
(i) As used in this Agreement,
unless the context expressly indicates otherwise, the word “or” is inclusive and
means “and/or,” and the word “including” and variations on that word mean
“including without limitation.”
(j) If any action at law or in
equity (including any arbitration proceeding) is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to
recover reasonable attorney’s fees, costs, and necessary disbursements from the
non-prevailing party in addition to any other relief to which such party may be
entitled.
(k) Notwithstanding
any other provision of this Agreement to the contrary, if Executive is a
“specified employee” within the meaning of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) and the
related guidance (“Section 409A”) at the
time of Executive’s Separation (as defined below), then only that portion of the
severance benefits provided hereunder, together with any other severance
payments or benefits, that may be considered deferred compensation under Section
409A, which (when considered together) do not exceed the Section 409A Limit (as
defined below) and which qualify as separation pay under Treasury Regulation
Section 1.409A-1(b)(9)(iii), may be paid within the first six (6) months
following Executive’s Separation in accordance with applicable payment schedule
set forth herein or, for payments or benefits not provided under this Agreement,
with the payment schedule applicable to each such other payment or
benefit. Otherwise, the portion of the severance benefits provided
herein, together with any other severance payments or benefits that may be
considered deferred compensation under Section 409A, that would otherwise be
payable within the six (6) month period following Executive’s Separation will be
paid in a lump sum on the date six (6) months and one (1) day following the date
of Executive’s Separation (or the next business day if such date is not business
day). For purposes of this Agreement, “Section 409A Limit”
means the lesser of two (2) times: (i) the sum of Executive’s annualized
compensation based upon the annual rate of pay for services provided to the
Company for the taxable year preceding the taxable year of Executive’s
Separation from the Company as determined under Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(1) and any related Internal Revenue Service guidance; or
(ii) the maximum amount that may be taken into account under a qualified plan
pursuant to Section 401(a)(17) of the Code for the year in which such Separation
occurs. “Separation” means a
“separation from service,” as defined in the regulations under Section 409A of
the Code.
13
(l) THE EXECUTIVE STATES THAT HE HAS
FREELY AND VOLUNTARILY ENTERED INTO THIS AGREEMENT AND THAT HE HAS READ AND
UNDERSTOOD EACH AND EVERY PROVISION THEREOF. THIS AGREEMENT IS EFFECTIVE UPON
THE EXECUTION OF THIS AGREEMENT BY BOTH PARTIES.
[Signature
Page Follows]
14
IN
WITNESS WHEREOF, the Company and the Executive have executed this Employment
Agreement as of the day and year first above written.
Xxxxxx
Xxxxxx
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GoFish
Corporation
|
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/s/ Xxxxxx Xxxxxx
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By:
/s/ Xxxxxxx
Xxxxxx
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Name:
Xxxxxxx Xxxxxx
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||
Title:
President
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