NETEZZA CORPORATION Executive Retention Agreement
Exhibit 10.21
THIS AGREEMENT by and between Netezza Corporation, a Delaware corporation (the “Company”), and
Xxxxx X. Xxxxxxx (the “Executive”) is made as of November 24, 2009 (the “Effective Date”).
WHEREAS, the Company recognizes that the possibility of a change in control of the Company
exists and that such possibility, coupled with the possibility of a termination without cause or
for good reason following a change in control, may create uncertainty or distractions among key
personnel, including the Executive, to the detriment of the Company and its stockholders, and
WHEREAS, the Board of Directors of the Company (the “Board”) has determined that appropriate
steps should be taken to reinforce and encourage the continued employment and dedication of the
Company’s key personnel following a possible change in control without distraction from the events
and circumstances referred to above.
NOW, THEREFORE, as an inducement for and in consideration of the Executive remaining in its
employ, the Company agrees that the Executive shall receive the severance benefits set forth in
this Agreement in the event the Executive’s employment with the Company is terminated following a
change in control under the circumstances described below.
1. Key Definitions.
As used herein, the following terms shall have the following respective meanings:
1.1 “Change in Control” means an event or occurrence set forth in any one or more of
subsections (a) through (c) below (including an event or occurrence that constitutes a Change in
Control under one of such subsections but is specifically exempted from another such
subsection) and that also constitutes a “change of control” within the meaning of Xxxxxxx
000X xx xxx Xxxxxx Xxxxxx Internal Revenue Code of 1986, as amended, and the guidance issued
thereunder (“Section 409A”):
(a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 30% or more
of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the
Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into
or exchangeable for common stock or voting securities of the Company, unless the Person
exercising, converting or exchanging such security acquired such security directly from the Company
or an underwriter or agent of the Company), (ii) any acquisition by the Company, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (iv) any acquisition by any corporation pursuant
to a transaction which complies with clauses (i) and (ii) of subsection (c) of this Section 1.1; or
(b) such time as the Continuing Directors (as defined below) do not constitute a majority of
the Board (or, if applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of the Board (i) who was a member
of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected
subsequent to such date by at least a majority of the directors who were Continuing Directors at
the time of such nomination or election or whose election to the Board was recommended or endorsed
by at least a majority of the directors who were Continuing Directors at the time of such
nomination or election; provided, however, that there shall be excluded from this
clause (ii) any individual whose initial assumption of office occurred as a result of an actual or
threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents, by or on behalf of a person other than the Board;
or
(c) the consummation of a merger, consolidation, reorganization, recapitalization or statutory
share exchange involving the Company or a sale or other disposition of all or substantially all of
the assets of the Company in one or a series of transactions (a “Business Combination”), unless,
immediately following such Business Combination, each of the following two conditions is satisfied:
(i) all or substantially all of the individuals and entities who were the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring
corporation is referred to herein as the “Acquiring Corporation”) in substantially the same
proportions as their ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person
(excluding any employee benefit plan (or related trust) maintained or sponsored by the Company or
by the Acquiring Corporation) beneficially owns, directly or indirectly, 30% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of
the then-outstanding securities of such corporation entitled to vote generally in the election of
directors (except to the extent that such ownership existed prior to the Business Combination).
1.2 “Change in Control Date” means the first date on which a Change in Control occurs.
Anything in this Agreement to the contrary notwithstanding, if (a) a Change in Control occurs, (b)
the Executive’s employment with the Company is terminated prior to the
date on which the Change in Control occurs, and (c) it is reasonably demonstrated by the
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Executive that such termination of employment (i) was at the request of a third party who has taken
steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection
with or in anticipation of a Change in Control, then for all purposes of this Agreement the “Change
in Control Date” shall mean the date immediately prior to the date of such termination of
employment.
1.3 “Cause” means a good faith finding by the Company that:
(a) the Executive has breached any of his or her material legal or contractual obligations to
the Company (other than as a result of incapacity) which breach (i) has not been cured by the
Executive within 10 business days following written notice by the Company to the Executive
notifying him or her of such breach and (ii) would have a material adverse effect on the Company;
or
(b) the Executive has engaged in gross or persistent misconduct with respect to the Company;
or
(c) the Executive has been convicted of or pleaded guilty or nolo contendere to (i) any
misdemeanor relating to the affairs of the Company which is injurious to the Company or (ii) any
felony.
1.4 “Good Reason” means the occurrence, without the Executive’s written consent, of
any of the following:
(a) a material reduction of the Executive’s annual base salary, provided that the reduction is
at least 15%;
(b) a significant diminution in the Executive’s authority and duties, such that the
Executive’s employment duties and responsibilities are no longer of an executive nature; or
(c) the relocation of the Executive’s principal place of employment to a location that is more
than 30 miles further away from the Executive’s residence than is the Executive’s current principal
place of employment.
Any termination by the Executive for Good Reason following a Change in Control shall be
communicated by means of a written notice delivered by the Executive to the Company within 90 days
of the initial existence of the occurrence or condition on which the Executive bases his claim for
Good Reason. If the condition is capable of being corrected, the Company shall have 30 days during
which it may remedy the condition. If the condition is fully remedied within such time period, the
Company shall not owe the amounts otherwise required to be paid under this Agreement. If the
condition is not corrected, the Executive must leave employment within one year after the Company
fails to cure the condition giving rise to the Executive’s claim for Good Reason following a Change
in Control.
1.5 “Disability” means the Executive’s absence from the full-time performance of the
Executive’s duties with the Company for 180 consecutive calendar days as a
result of incapacity due to mental or physical illness which is determined to be total and
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permanent by a physician selected by the Company or its insurers and acceptable to the Executive or
the Executive’s legal representative.
2. Term of Agreement. This Agreement, and all rights and obligations of the parties
hereunder, shall take effect upon the Effective Date and shall continue in effect until the
fulfillment by the Company of all of its obligations under Sections 4 and 5.2. Notwithstanding
anything else to the contrary in this Agreement, any provision of this Agreement which provides the
Executive with payment rights not previously held by the Executive shall be effective with respect
to a voluntary termination (including a termination for Good Reason) only if (x) the date of such
termination occurs after the earlier of (i) the date that is at least 12 months and one day after
the date of this Agreement or (ii) the first date upon which said provisions may be effective with
respect to such termination without causing payments or benefits hereunder to constitute
nonqualified deferred compensation subject to Section 409A, and (y) the Executive remains
continually employed by the Company prior to such termination date.
3. Employment Status; Notice of Termination of Employment.
3.1 Not an Employment Contract. The Executive acknowledges that this Agreement does
not constitute a contract of employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent the Executive from terminating
employment at any time.
3.2 Notice of Termination of Employment Following a Change in Control.
(a) Any termination of the Executive’s employment by the Company or by the Executive (other
than due to the death of the Executive) following a Change in Control shall be communicated by a
written notice to the other party hereto (the “Notice of Termination”), given in accordance with
Section 7. Any Notice of Termination shall: (i) indicate whether the termination is for Cause or
Good Reason, (ii) to the extent applicable, set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination for Cause or Good Reason and (iii) specify
the Date of Termination (as defined below). The effective date of an employment termination (the
“Date of Termination”) shall be the close of business on the date specified in the Notice of
Termination (which date may not be less than 10 days or more than 90 days after the date of
delivery of such Notice of Termination), in the case of a termination other than one due to the
Executive’s death, or the date of the Executive’s death, as the case may be.
(b) The failure by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the Executive or the
Company, respectively, from asserting any such fact or circumstance in enforcing the Executive’s or
the Company’s rights hereunder.
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(c) Any Notice of Termination for Cause given by the Company must be given within 90 days of
the occurrence of the event(s) or circumstance(s) which constitute(s) Cause.
4. Benefits to Executive.
4.1 Severance Benefits. If the Executive’s employment with the Company is terminated
by the Company (other than for Cause, Disability or death) or by the Executive for Good Reason
following a Change in Control, then the Executive shall be entitled to the following benefits,
subject to Sections 4.5 and 4.8:
(a) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date
of Termination the sum of (i) the Executive’s base salary through the Date of Termination, (ii) any
accrued bonus which the Executive is entitled to receive as of the Date of Termination, (iii) the
amount of any compensation previously deferred by the Executive (together with any accrued interest
or earnings thereon) and any accrued vacation pay, in each case to the extent not previously paid
(the sum of the amounts described in clauses (i), (ii), and (iii) shall be hereinafter referred to
as the “Accrued Obligations”);
(b) for 12 months after the Date of Termination, the Company shall continue to pay to the
Executive, beginning on the 30th day after the Date of Termination, in accordance with
its normal payroll practices, compensation at an annual rate equal to the sum of (i) his or her
highest annual base salary during the three-year period prior to the Date of Termination plus (ii)
the amount of the incentive bonus or bonuses paid to the Executive for the most recently completed
fiscal year for which all such bonuses to which the Executive is entitled have been paid; and
(c) for 12 months after the Date of Termination, the Company shall continue to provide to the
Executive medical and dental benefits on substantially the same terms as were provided to the
Executive on the Date of Termination; provided, however, that if the Executive becomes reemployed
with another employer and is eligible to receive a particular type of benefits from such employer
on terms at least as favorable to the Executive and his or her family as those being provided by
the Company, then the Company shall no longer be required to provide those particular benefits to
the Executive and his or her family.
4.2 Resignation without Good Reason; Termination for Cause or for Death or Disability.
If the Executive voluntarily terminates his or her employment with the Company, excluding a
termination for Good Reason, or the Executive’s employment with the Company is terminated by the
Company for Cause or by reason of the Executive’s death or Disability, in each case following a
Change in Control, then the Company shall pay the Executive (or his or her estate, if applicable),
in a lump sum in cash within 30 days after the Date of Termination, the Accrued Obligations.
4.3 Stock Acceleration. If the Executive’s employment is terminated by the Company
without Cause or by the Executive for Good Reason following a Change in Control, then all stock
options, restricted stock or other equity awards subject to vesting that are held by
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the Executive as of such employment termination shall become vested in full effective
immediately prior to such employment termination.
4.4 Taxes.
(a) Notwithstanding any other provision of this Agreement, except as set forth in Section
4.4(b), in the event that the Company undergoes a “Change in Ownership or Control” (as defined
below), the Company shall not be obligated to provide to the Executive a portion of any “Contingent
Compensation Payments” (as defined below) that the Executive would otherwise be entitled to receive
to the extent necessary to eliminate any “excess parachute payments” (as defined in Section
280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”)) for the Executive. For
purposes of this Section 4.4, the Contingent Compensation Payments so eliminated shall be referred
to as the “Eliminated Payments” and the aggregate amount (determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-30 or any successor provision) of the Contingent Compensation
Payments so eliminated shall be referred to as the “Eliminated Amount.”
(b) Notwithstanding the provisions of Section 4.4(a), no such reduction in Contingent
Compensation Payments shall be made if (i) the Eliminated Amount (computed without regard to this
sentence) exceeds (ii) 110% of the aggregate present value (determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount of any
additional taxes that would be incurred by the Executive if the Eliminated Payments (determined
without regard to this sentence) were paid to him or her (including, state and federal income taxes
on the Eliminated Payments, the excise tax imposed by Section 4999 of the Code payable with respect
to all of the Contingent Compensation Payments in excess of the Executive’s “base amount” (as
defined in Section 280G(b)(3) of the Code), and any withholding taxes). The override of such
reduction in Contingent Compensation Payments pursuant to this Section 4.4(b) shall be referred to
as a “Section 4.4(b) Override.” For purpose of this paragraph, if any federal or state income
taxes would be attributable to the receipt of any Eliminated Payment, the amount of such taxes
shall be computed by multiplying the amount of the Eliminated Payment by the maximum combined
federal and state income tax rate provided by law.
(c) For purposes of this Section 4.4 the following terms shall have the following respective
meanings:
(i) “Change in Ownership or Control” shall mean a change in the ownership or effective control
of the Company or in the ownership of a substantial portion of the assets of the Company determined
in accordance with Section 280G(b)(2) of the Code.
(ii) “Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of
compensation that is made or made available (under this Agreement or otherwise) to a “disqualified
individual” (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning
of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company.
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(d) Any payments or other benefits otherwise due to the Executive following a Change in
Ownership or Control that could reasonably be characterized (as determined by the Company) as
Contingent Compensation Payments (the “Potential Payments”) shall not be made until the dates
provided for in this Section 4.4(d). Within 30 days after each date on which the Executive first
becomes entitled to receive (whether or not then due) a Contingent Compensation Payment relating to
such Change in Ownership or Control, the Company shall determine and notify the Executive (with
reasonable detail regarding the basis for its determinations) (i) which Potential Payments
constitute Contingent Compensation Payments, (ii) the Eliminated Amount and (iii) whether the
Section 4.4(b) Override is applicable. Within 30 days after delivery of such notice to the
Executive, the Executive shall deliver a response to the Company (the “Executive Response”) stating
either (A) that he or she agrees with the Company’s determination pursuant to the preceding
sentence, or (B) that he or she disagrees with such determination, in which case he or she shall
set forth (i) which Potential Payments should be characterized as Contingent Compensation Payments,
(ii) the Eliminated Amount, and (iii) whether the Section 4.4(b) Override is applicable. If and to
the extent that any Contingent Compensation Payments are required to be treated as Eliminated
Payments pursuant to this Section 4.4(d), then the Payments shall be reduced or eliminated, as
determined by the Company, in the following order: (A) any cash payments, (B) any taxable benefits,
(C) any nontaxable benefits, and (D) any vesting of equity awards, in each case in reverse order
beginning with payments or benefits that are to be paid the farthest in time from the date that
triggers the applicability of the excise tax, to the extent necessary to maximize the Eliminated
Payments. In the event that the Executive fails to deliver an Executive Response on or before the
required date, the Company’s initial determination shall be final. If the Executive states in the
Executive Response that he or she agrees with the Company’s determination, the Company shall make
the Potential Payments to the Executive within three business days following delivery to the
Company of the Executive Response (except for any Potential Payments which are not due to be made
until after such date, which Potential Payments shall be made on the date on which they are due).
If the Executive states in the Executive Response that he or she disagrees with the Company’s
determination, then, for a period of 60 days following delivery of the Executive Response, the
Executive and the Company shall use good faith efforts to resolve such dispute. If such dispute is
not resolved within such 60-day period, such dispute shall be settled exclusively by arbitration in
Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The
Company shall, within three business days following delivery to the Company of the Executive
Response, make to the Executive those Potential Payments as to which there is no dispute between
the Company and the Executive regarding whether they should be made (except for any such Potential
Payments which are not due to be made until after such date, which Potential Payments shall be made
on the date on which they are due). The balance of the Potential Payments shall be made within
three business days following the resolution of such dispute. Subject to the limitations contained
in Sections 4.4(a) and (b) hereof, the amount of any payments to be made to the Executive following
the resolution of such dispute shall be increased by the amount of the accrued interest thereon
computed at the prime rate announced from time to time by Silicon Valley Bank, compounded monthly
from the date that such payments originally were due.
(e) The provisions of this Section 4.4 are intended to apply to any and all payments or
benefits available to the Executive under this Agreement or any other agreement
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or plan of the Company under which the Executive receives Contingent Compensation Payments.
4.5 Payments Subject to Section 409A. Subject to the provisions in this Section 4.5
any severance payments or benefits under this Agreement shall begin only upon the date of the
Executive’s “separation from service” (determined as set forth below) which occurs on or after the
date of termination of employment. The following rules shall apply with respect to distribution of
the payments and benefits, if any, to be provided to the Executive under this Agreement:
(a) It is intended that each installment of the severance payments and benefits provided under
this Agreement shall be treated as a separate “payment” for purposes of Section 409A of the
Internal Revenue Code and the guidance issued thereunder (“Section 409A”). Neither the Executive
nor the Company shall have the right to accelerate or defer the delivery of any such payments or
benefits except to the extent specifically permitted or required by Section 409A.
(b) If, as of the date of the Executive’s “separation from service” from the Company, the
Executive is not a “specified employee” (within the meaning of Section 409A), then each installment
of the severance payments and benefits shall be made on the dates and terms set forth in this
Agreement.
(c) If, as of the date of the Executive’s “separation from service” from the Company, the
Executive is a “specified employee” (within the meaning of Section 409A), then:
(i) Each installment of the severance payments and benefits due under this Agreement that, in
accordance with the dates and terms set forth herein, will in all circumstances, regardless of when
the separation from service occurs, be paid within the short-term deferral period (as defined under
Section 409A) shall be treated as a short-term deferral within the meaning of Treasury Regulation
Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A; and
(ii) Each installment of the severance payments and benefits due under this Agreement that is
not described in paragraph (i) above and that would, absent this subsection, be paid within the
six-month period following the Executive’s “separation from service” from the Company shall not be
paid until the date that is six months and one day after such separation from service (or, if
earlier, the Executive’s death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six months and
one day following the Executive’s separation from service and any subsequent installments, if any,
being paid in accordance with the dates and terms set forth herein; provided, however, that the
preceding provisions of this sentence shall not apply to any installment of severance payments and
benefits if and to the maximum extent that that such installment is deemed to be paid under a
separation pay plan that does not provide for a deferral of compensation by reason of the
application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an
involuntary separation from service). Any installments that qualify for the exception under
Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no
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later than the last day of the Executive’s second taxable year following the Executive’s
taxable year in which the separation from service occurs.
(d) The determination of whether and when the Executive’s separation from service from the
Company has occurred shall be made and in a manner consistent with, and based on the presumptions
set forth in, Treasury Regulation Section 1.409A-1(h). Solely for purposes of this paragraph (d),
“Company” shall include all persons with whom the Company would be considered a single employer as
determined under Treasury Regulation Section 1.409A-1(h)(3).
(e) All reimbursements and in-kind benefits provided under this Agreement shall be made or
provided in accordance with the requirements of Section 409A to the extent that such reimbursements
or in-kind benefits are subject to Section 409A, including, where applicable, the requirement that
(i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter
period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement
during a calendar year may not affect the expenses eligible for reimbursement in any other calendar
year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the
calendar year following the year in which the expense is incurred and (iv) the right to
reimbursement is not subject to set off or liquidation or exchange for any other benefit.
(f) The Company may withhold (or cause to be withheld) from any payments made under this
Agreement, all federal, state, city or other taxes as shall be required to be withheld pursuant to
any law or governmental regulation or ruling.
(g) The Company makes no representation or warranty and shall have no liability to the
Executive or any other person if the payments and/or benefits under this Agreement are determined
to constitute deferred compensation subject to Section 409A but do not satisfy the conditions of
such section..
4.6 Exclusive Severance Benefits. The making of the payments and the provision of the
benefits by the Company to the Executive under this Agreement shall constitute the entire
obligation of the Company to the Executive as a result of the termination of his or her employment
following a Change in Control, and the Executive shall not be entitled to additional payments or
benefits as a result of such termination of employment under any other plan, program, policy,
practice, contract or agreement of the Company or its subsidiaries.
4.7 Mitigation. The Executive shall not be required to mitigate the amount of any
payment or benefits provided for in this Section 4 by seeking other employment or otherwise.
Further, except as set forth in Section 4.1(c), the amount of any payment or benefits provided for
in this Section 4 shall not be reduced by any compensation earned by the Executive as a result of
employment by another employer.
4.8 Release. The obligation of the Company to make the payments and provide the
benefits to the Executive under clauses (b) and (c) of Section 4.1 is conditioned upon the
Executive signing a release of claims, in a customary and reasonable form requested by the Company
(the “Executive Release”), within 30 days following the Date of Termination.
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Payments shall be made and benefits commence, pursuant to the terms of Section 4.1, on the
30th day after the Date of Termination subject to the Executive Release becoming binding
and any applicable revocation period having lapsed as of such date. The Company shall not be
obligated to make any payments to the Executive under Section 4.1(b) until the Executive Release
has become effective.
5. Disputes.
5.1 Settlement of Disputes; Arbitration. All claims by the Executive for benefits
under this Agreement shall be directed to and determined by the Board and shall be in writing. Any
denial by the Board of a claim for benefits under this Agreement shall be delivered to the
Executive in writing and shall set forth the specific reasons for the denial and the specific
provisions of this Agreement relied upon. The Board shall afford a reasonable opportunity to the
Executive for a review of the decision denying a claim. Any further dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by arbitration in Boston,
Massachusetts, in accordance with the rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction.
5.2 Expenses. The Company agrees to pay as incurred, to the full extent permitted by
law, all legal, accounting and other fees and expenses which the Executive may reasonably incur as
a result of any claim or contest by the Company, the Executive or others regarding the validity,
enforceability or applicability of any provision of this Agreement, plus in each case interest on
any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Code.
6. Successors.
6.1 Successor to Company. This Agreement shall be binding upon the Company and its
successors and assigns (including the resulting or acquiring company in a Business Combination).
In the event of a Business Combination (and provided that, in the case of a Business Combination
structured as the sale or other disposition of all or substantially all of the assets of the
Company, the Executive accepts employment with the Acquiring Corporation effective on or about the
Change in Control Date), all references in this Agreement to the Company shall instead be deemed to
refer to the Acquiring Corporation.
6.2 Successor to Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s duly authorized personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the Executive should
die while any amount would still be payable to the Executive or his or her family hereunder if the
Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid
in accordance with the terms of this Agreement to the executors, personal representatives or
administrators of the Executive’s estate, as appropriate.
7. Notice. All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or communication shall be
sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii)
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prepaid via a reputable nationwide overnight courier service, in each case addressed to the
Company, at 000 Xxxxxxxx Xxxxxxxxx, Xxxxxxxxxx, Xxxxxxxxxxxxx 00000, and to the Executive at the
address set forth below his or her name on the signature page hereto (or to such other address as
either the Company or the Executive may have furnished to the other in writing in accordance
herewith). Any such notice, instruction or communication shall be deemed to have been delivered
five business days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, or one business day after it is sent via a reputable nationwide overnight courier
service. Either party may give any notice, instruction or other communication hereunder using any
other means, but no such notice, instruction or other communication shall be deemed to have been
duly delivered unless and until it actually is received by the party for whom it is intended.
8. Miscellaneous.
8.1 Employment by Subsidiary. For purposes of this Agreement, the Executive’s
employment with the Company shall not be deemed to have terminated solely as a result of the
Executive continuing to be employed by a wholly-owned subsidiary of the Company.
8.2 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.
8.3 Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal laws of the Commonwealth of Massachusetts, without
regard to conflicts of law principles.
8.4 Waivers. No waiver by the Executive at any time of any breach of, or compliance
with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of
that or any other provision at any subsequent time.
8.5 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but both of which together shall constitute one and the same
instrument.
8.6 Tax Withholding. Any payments provided for hereunder shall be paid net of any
applicable tax withholding required under federal, state or local law.
8.7 Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto in respect of the subject
matter contained herein; and any prior agreement of the parties hereto in respect of the subject
matter contained herein is hereby terminated and cancelled. This agreement supplements and
modifies the vesting provisions in any current or future stock option, restricted stock or equity
award agreement between the Executive and the Company; provided that if any such agreement has
acceleration-of-vesting provisions that are more favorable to the Executive than the terms of this
agreement, such more favorable provisions shall apply.
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8.8 Amendments. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Executive.
8.9 Executive’s Acknowledgements. The Executive acknowledges that he or she: (a) has
read this Agreement; (b) has been represented in the preparation, negotiation, and execution of
this Agreement by legal counsel of the Executive’s own choice or has voluntarily declined to seek
such counsel; (c) understands the terms and consequences of this Agreement; and (d) understands
that the law firm of WilmerHale is acting as counsel to the Company in connection with the
transactions contemplated by this Agreement, and is not acting as counsel for the Executive.
[Remainder of page intentionally left blank.]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first set forth above.
| NETEZZA CORPORATION |
||||
| By: | /s/ Xxxxx Xxxx | |||
| Name: | Xxxxx Xxxx | |||
| Title: | President and Chief Executive Officer | |||
| XXXXX X. XXXXXXX |
||||
| /s/ Xxxxx X. Xxxxxxx | ||||
| Address: | ||||
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