Exhibit 10.9
EMPLOYMENT AGREEMENT
AGREEMENT made this 28th day of April, 1999, by and between
XXXXXX.XXX LTD., a New York corporation (the "COMPANY"), and XXXXXXXX XXXXXXXX
(the "EXECUTIVE").
W I T N E S S E T H:
WHEREAS, the Company wishes to employ the Executive and the
Executive wishes to accept such employment upon the terms and conditions
hereinafter set forth.
NOW, THEREFORE, in consideration of the premises and other
good and valuable consideration, receipt of which is hereby acknowledged, the
parties hereto agree as follows:
1. EMPLOYMENT
The Company agrees to employ the Executive during the Term
specified in paragraph 2, and the Executive agrees to accept such employment,
upon the terms and conditions hereinafter set forth.
2. TERM
Subject to paragraphs 6 and 7 below and the other terms and
conditions of this Agreement, the Executive's employment by the Company shall be
for a term commencing on the date hereof and expiring on the close of business
on March 31, 2002 (the "INITIAL TERM"); provided, however, the term of the
Executive's employment by the Company shall continue for an indefinite period
thereafter unless and until either party shall give to the other 90 days advance
written notice of expiration of the term (a "NOTICE OF TERMINATION") (the
Initial Term and the period, if any, thereafter, during which the Executive's
employment shall continue are collectively referred to as the "TERM"). Any
Notice of Termination given under this paragraph 2(a), shall specify the date of
expiration (which may not be earlier than the close of business on March 31,
2002) and may be given at any time on or after December 31, 2001. The Company
shall have the right at any time during such 90 day notice period, to relieve
the Executive of his offices, duties and responsibilities and to place him on a
paid leave-of-absence status, provided that during such notice period the
Executive shall remain a full-time employee of the Company and shall continue to
receive his salary compensation and other benefits as provided in this
Agreement. During any such paid leave-of-absence, the Executive shall have the
right to seek other employment without forfeiting any of his rights hereunder.
The effective date of the termination of the Executive's employment with the
Company, regardless of the reason therefor, is referred to in this Agreement as
the "DATE OF TERMINATION".
3. DUTIES AND RESPONSIBILITIES
(a) During the Term, the Executive shall have the position of
Chief Technology Officer of the Company. The Executive shall report to the Chief
Executive Officer of the Company (the "CEO"), at such times and in such detail
as he shall reasonably require.
(b) The Executive shall be responsible for technology
leadership for the Company and in connection therewith shall perform such
executive and managerial duties and responsibilities customary to his office and
as are reasonably necessary to the operations of the Company and its
subsidiaries and as may be assigned to him from time to time by or under
authority of the CEO, consistent with his positions as designated in paragraph
3(a) above. In addition, the Executive will participate as a member of the
Company's senior executive management.
(c) The Executive (i) will use his best reasonable efforts to
ensure that the Company and its subsidiaries comply on a timely basis with all
budgetary and reporting requirements reasonably requested by the CEO and (ii)
will not incur obligations on behalf of the Company or any subsidiary other than
in the ordinary course of business or enter into any transaction on behalf of
the Company or any subsidiary not in the ordinary course of business without the
approval of the CEO.
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(d) The Executive's employment by the Company shall be
full-time and exclusive, and during the Term, the Executive agrees that he will
(i) devote all of his business time and attention, his best efforts, and all of
his skill and ability to promote the interests of the Company and its
subsidiaries in furtherance of his duties hereunder, (ii) carry out his duties
in a competent and professional manner, and (iii) work with other employees of
the Company and its subsidiaries in a competent and professional manner.
Notwithstanding the foregoing, the Executive shall be permitted to (x) engage in
charitable and civic activities, and (y) provide business advice and assistance
to friends and family (it being acknowledged by the Company that the Executive
has in the past and may in the future provide such assistance), and (z) manage
his personal passive investments, provided that such businesses operated by
friends or family or such passive investments are not in a company which
transacts business with the Company or one of its subsidiaries or engages in
business competitive with that conducted by the Company or one of its
subsidiaries (or, if such company does transact business with the Company or a
subsidiary or does engage in a competitive business, it is a publicly held
corporation of which the Executive owns less than 1/4 of 1% of its outstanding
shares); provided, that such activities (individually or collectively) do not
materially interfere with the performance of the Executive's duties and
responsibilities under this Agreement.
(e) During the Term, the Executive's services hereunder shall be
performed at the offices of the Company in Boston, Massachusetts, subject to
reasonable and necessary travel requirements of his position and duties
hereunder.
4. COMPENSATION
(a) As compensation for his services hereunder and in
consideration of his non-solicitation/non-servicing and non-disclosure covenants
as set forth in paragraph 8 below, during the Term the Company shall pay the
Executive in accordance with its normal payroll practices an annualized base
salary of $150,000. The Executive's base salary may be increased (but not
decreased) by or under the authority of the CEO in accordance with the then
salary review policy of the Company and within the guidelines and budgetary
procedures of the Company.
(b) The Executive shall be eligible to participate in such
management incentive compensation plans and programs that the Company may from
time to time institute.
5. EXPENSES; FRINGE BENEFITS
(a) The Company agrees to pay or to reimburse the Executive
for all reasonable, ordinary and necessary documented business or entertainment
expenses incurred during the Term in the performance of his services hereunder
in accordance with the policy of the Company as from time to time in effect. The
Executive, as a condition precedent to
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obtaining such payment or reimbursement, shall provide to the Company any and
all statements, bills or receipts evidencing the travel or out-of-pocket
expenses for which the Executive seeks payment or reimbursement, and any other
information or materials, as the Company may from time to time reasonably
require.
(b) During the Term, the Executive and, to the extent
eligible, his dependents, shall be entitled to participate in and receive all
benefits under any welfare benefit plans and programs made available generally
to the Company's senior executives or to its employees (including without
limitation, family medical, disability and life insurance programs, accidental
death and dismemberment protection and business travel insurance), subject,
however, to the generally applicable eligibility and other provisions of the
various plans and programs in effect from time to time.
(c) During the Term, the Executive shall be eligible to participate in
all retirement plans and programs (including without limitation any profit
sharing/401(k) plan) and stock option and restricted stock plans made available
generally to the Company's senior executives or to its employees generally,
subject, however, to the generally applicable eligibility and other provisions
of the various plans and programs in effect from time to time. In addition,
during the Term, the Executive shall be entitled to receive fringe benefits and
perquisites in accordance with the plans, practices, programs and policies of
the Company from time to time in effect which are made available generally to
the Company's senior executives or to its employees generally.
(d) The Executive shall be entitled to paid vacation as
provided under standard Company policy, to be taken at such time(s) as shall
not, in the reasonable judgment of the CEO, materially interfere with the
Executive's fulfillment of his duties hereunder, and shall be entitled to as
many holidays, sick days and personal days as are in accordance with the
Company's policy as in effect generally for its employees on January 1, 1999.
(e) During the Term, the Company will reimburse the Executive
for his costs, if any, of, garaging an automobile at the offices of the Company.
6. TERMINATION
(a) The Company, by direction of the CEO, shall be entitled to
terminate the Term and to discharge the Executive for "CAUSE" effective upon the
giving of written notice. The term "cause" shall be limited to the following
grounds:
(i) the Executive's repeated failure or refusal to
materially perform his duties and responsibilities as set
forth in paragraph 3 hereof other than by reason of his
disability (as defined in paragraph 7 below), or the failure
of the Executive to devote his attention exclusively to the
business and affairs of the
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Company and its subsidiaries in accordance with the terms
hereof (other than by reason of his disability), in each case
if such failure or refusal is not cured within 30 days after
written notice thereof to the Executive by the Company;
(ii) the willful misappropriation of the funds or
property of the Company or any subsidiary (other than
immaterial tangible property such as small office supplies);
(iii) use of alcohol or illegal drugs, materially
interfering with the performance of the Executive's
obligations under this Agreement, continuing after written
warning;
(iv) conviction in a court of law of, or entering a
plea of guilty or no contest to, any felony or any crime
involving moral turpitude, dishonesty or theft;
(v) the material nonconformance with the Company's
standard business practices and policies, including without
limitation, policies against racial or sexual discrimination
or harassment, made known to the Executive, which
nonconformance is not cured (if curable) within 30 days after
written notice to the Executive by the Company;
(vi) the commission in bad faith by the Executive of
any act which injures or could reasonably be expected to
injure the reputation, business or business relationships of
the Company or any subsidiary;
(vii) any material breach (not covered by any of the
clauses (i) through (vi) above) of any term, provision or
condition of this Agreement, if such breach is not cured (if
curable) within 30 days after written notice thereofto the
Executive by the Company; and
(viii) a voluntary resignation by the Executive OTHER
THAN (1) pursuant to a Notice of Termination given by the
Executive under paragraph 2 above or (2) a termination by the
Executive for "Good Reason" (as defined in paragraph 6(b)
below).
Any notice required to be given by the Company pursuant to clause (i), (v) or
(vii) above shall specify the specific nature of the claimed breach and the
manner in which the Company reasonably requires such breach to be cured (if
curable). In the event that the Executive is purportedly terminated for cause
and the arbitrator appointed pursuant to paragraph 19 below determines that
"cause" as defined herein was not present, then such purported termination for
cause shall be deemed a termination by the Company "without cause" pursuant to
paragraph 6(d) below and the Executive's rights and remedies will be governed by
paragraph
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6(d) below, in full satisfaction and in lieu of any and all other or further
remedies the Executive may have.
(b) Provided that the Executive is not then otherwise in
material breach of this Agreement permitting the Company to terminate the
Executive for "cause", the Executive shall be entitled to terminate this
Agreement and the Term hereunder for "Good Reason" at any time during the Term
by written notice to the Company.
"GOOD REASON" shall be limited to the following grounds:
(i) a breach by the Company of a material term of this
Agreement (including Section 3 and specifically 3(e), except as
provided in (ii) below), which breach remains uncured for a period of
30 days after written notice of such breach from the Executive to the
Company (such notice to specify the specific nature of the claimed
breach and the manner in which the Executive requires such breach to be
cured);
(ii) a reduction by the Company in the Executive's title; and
(iii) the conviction of the Company or a subsidiary of the
Company of a crime classified as a felony under any Federal, state or
local laws, or other crime which injures or could reasonably be
expected to injure the reputation, business relationships or
marketability of the Executive.
(c) In the event of the termination of the employment of the
Executive with the Company for any reason (including without limitation, a
termination pursuant to a Notice of Termination under paragraph 2 above) OTHER
THAN by virtue of a termination by the Company "without cause" or a termination
for "Good Reason" by the Executive, the Executive shall be entitled to the
following payments and benefits, subject to any appropriate offsets, as
permitted by applicable law, for monies due to the Company or an affiliate
thereof (collectively, "OFFSETS"):
(i) unpaid salary compensation and any unused accrued
vacation only through, and any unpaid reimbursable expenses
outstanding as of, the Date of Termination;
(ii) all benefits, if any, that had accrued to the
Executive through the Date of Termination under the plans and
programs described in paragraphs 5(b) and (c) above, or any
other applicable plans and programs in which he participated
as an employee of the Company, and all amounts earned, accrued
or owing to the Executive through the Date of Termination
under any incentive compensation plan or program in which he
participated as an employee of the Company, in the manner and
in accordance with the terms of such plans and programs; and
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(iii) the right to exercise any vested option and the
continued vesting of any unvested options (if any) shall be
determined in accordance with the terms of the plan under
which such option was granted and the vesting schedule
applicable to such options.
In the event of the termination of the Employee's employment OTHER THAN by
virtue of a termination by the Company "without cause" or a termination by the
Executive for "Good Reason", except as provided in this paragraph 6(c), the
Company shall have no further liability to the Executive or the Executive's
heirs, beneficiaries or estate for damages, compensation, benefits, severance,
or other amounts of whatever nature pursuant to this Agreement .
(d) The Company shall have the right at any time during the
Term to terminate the employment of the Executive "without cause" by giving
written notice to the Executive indicating that the Company has terminated the
Agreement "without cause" under this paragraph 6(d) and setting forth the Date
of Termination. In the event of a termination by the Company "without cause" or
a termination by the Executive for "Good Reason", the Executive shall be
entitled to continue to receive from the Company, subject to any Offsets, the
following:
(i) as severance compensation, his then applicable
base salary when otherwise payable through (x) March 31, 2002
if the Date of Termination occurs on or prior to December 31,
2001 or (y) 90 days from the Date of Termination, if such
termination occurs after December 31, 2001;
(ii) any unpaid reimbursable expenses outstanding,
and any unused accrued vacation, as of the Date of
Termination;
(iii) all benefits, if any, that had accrued to the
Executive through the Date of Termination under the plans and
programs described in paragraphs 5(b) and (c) above, or any
other applicable benefit plans and programs in which he
participated as an employee of the Company, and all amounts
earned, accrued or owing to the Executive through the Date of
Termination under any incentive compensation plan in which he
participated as an employee of the Company, in the manner and
in accordance with the terms of such plans and programs;
(iv) continued participation on the same basis
(including without limitation, cost contributions) as the
other senior executives of the Company in all, medical
(including family medical), dental (including family dental),
disability and life insurance coverage and other welfare
benefits and programs (such benefits collectively called the
"CONTINUED PLANS") in which he was
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participating on the Date of Termination until the earlier of
(x) the end of the period that he receives severance
compensation payments under clause (i) of this paragraph 6(d)
or (y) the date, or dates, he is entitled to receive coverage
and benefits under the same type of plan of a subsequent
employer; provided, however, if the Executive is precluded
from continuing his participation in any Continued Plan or if
the Company effects any changes in its Continued Plans, or if
any Continued Plan does not provide to the Executive a level
of benefits at least commensurate with the level at which he
was participating on the Date of Termination, the economic
equivalent of the benefits provided under the Continued Plan
in which he is unable to participate, grossed up by the
related tax liability, for the period specified above, it
being understood that the economic equivalent of a benefit
foregone shall be deemed the lowest cost that would be
reasonably incurred by the Executive in obtaining such benefit
himself on an individual basis, for himself and his
dependents, as the case may be, and payment of such amount
shall be made quarterly in advance; and
(v) the right to exercise any vested option shall be
determined in accordance with the terms of the plan under
which such option was granted; provided, however, that the
vesting of those options theretofore granted to the Executive
and which would have vested during the period set forth in
Section 6(d)(i) shall be accelerated to precede the Date of
Termination.
In connection with a termination by the Company "without cause" or by the
Executive for "Good Reason", except as provided in this paragraph 6(d), (x) the
Company shall have no further liability to the Executive or the Executive's
heirs, beneficiaries or estate for damages, compensation, benefits, severance,
or other amounts pursuant to this Agreement , and (y) the Executive shall be
under no obligation to mitigate his damages or to seek other employment and if
the Executive obtains other employment, any compensation earned by the Executive
therefrom shall not reduce the Company's severance obligations under clause (i)
of this paragraph 6(d). The making of any severance payments and providing the
other benefits as provided in this paragraph 6(d) is conditioned upon the
Executive signing a release of the Company and its subsidiaries and affiliates,
and its and their respective successors and assigns, officers directors,
employees, agents, attorneys and representatives, acknowledging the fulfillment
by the Company of all its obligations under this Agreement ; except such release
shall preserve the Executive's rights with respect to the payments and benefits
to be received pursuant to this paragraph 6(d) and the Executive's rights of
indemnification under the Company's organizational documents and any separate
director indemnification agreement with the Company to which he may be a party.
If the Executive breaches any provisions of the provisions of paragraph 8 of
this Agreement, in addition to any other remedies at law or in equity available
to it, the Company may cease making any further severance payments and providing
the other benefits provided for in this paragraph 6(d), without affecting its
rights under this Agreement or the release; provided that, upon request of the
Executive, the Company shall make such payments into an interest-bearing escrow
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account during the pendency of any dispute as to whether the Company is
justified in ceasing to make such payments.
7. DISABILITY; DEATH
In the event the Executive shall be unable to perform his
duties hereunder by virtue of illness or physical or mental incapacity or
disability (from any cause or causes whatsoever) in substantially the manner and
to the extent required hereunder prior to the commencement of such disability
(all such causes being herein referred to as "DISABILITY") and the Executive
shall fail to perform such duties for periods aggregating 270 days, whether or
not continuous, in any continuous period of 360 days, the Company shall have the
right to terminate the Executive's employment hereunder as at the end of any
calendar month during the continuance of such disability upon at least 30 days'
prior written notice to him. In the event of the Executive's death, the Date of
Termination shall be the date of such death.
8. NON-SOLICITATION/NON-SERVICING AGREEMENT AND PROTECTION OF
CONFIDENTIAL INFORMATION
(a) The Executive acknowledges (i) the highly competitive
nature of the Company's business and the industry in which the Company competes;
(ii) that as a key executive of Quadris he has participated in and as a key
executive of the Company he will continue to participate in the servicing of
current clients of the Company and/or the solicitation of prospective clients of
the Company, through which, among other things, the Executive has obtained and
will continue to obtain knowledge of the "know-how" and business practices of
the Company, in which matters the Company has a substantial proprietary
interest; (iii) that his employment hereunder requires the performance of
services which are special, unique, extraordinary and intellectual in character,
and his position with Quadris placed and his position with the Company will
place him in a position of confidence and trust with the clients and employees
of the Company; and (iv) that his rendering of services to the clients of the
Company necessarily requires the disclosure to the Executive of confidential
information (as defined in paragraph 8(b) below) of the Company. In the course
of the Executive's employment with Quadris and the Company, the Executive has
and will continue to develop a personal relationship with the clients of the
Company and a knowledge of those clients' affairs and requirements, and that the
relationship of the Company with its established clientele has been and will
continue to be placed in the Executive's hands in confidence and trust. The
Executive consequently agrees that it is reasonable and necessary for the
protection of the confidential information, goodwill and business of the Company
that the Executive make the covenants contained herein and that the Company
would not have entered into this Agreement unless the covenants set forth in
this paragraph 8 were contained in this Agreement. Accordingly, the Executive
agrees that during the period that he is employed by the Company and thereafter
through the later of (x) March 31, 2002 and (y) two years after the Date of
Termination, he shall not, as an individual, consultant, partner, shareholder,
employee or in any other capacity whatsoever, or in association with any other
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person, business or enterprise, except on behalf of the Company, directly or
indirectly, and regardless of the reason for his ceasing to be employed by the
Company:
(i) attempt in any manner to solicit or accept from
any client business of the type performed (or proposed to be
performed, within the limitations set forth below) by the
Company for such client or to persuade any client to cease to
do business or to reduce the amount of business which any such
client has customarily done or is reasonably expected to do
with the Company, whether or not the relationship between the
Company and such client was originally established in whole or
in part through his efforts; or
(ii) employ as an employee or retain as a consultant
any person who is then or at any time during the preceding
twelve months was an employee of or exclusive consultant to
the Company, or persuade or attempt to persuade any such
employee of or such exclusive consultant to the Company to
leave the employ of the Company or to become employed as an
employee or retained as a consultant by anyone other than the
Company; or
(iii) render to or for any client any professional
services of the type rendered (or proposed to be rendered,
within the limitations set forth below) by the Company to or
for such client.
It is expressly acknowledged and agreed that the Executive may be employed by or
provide consulting services to or have an ownership interest in, any person,
business or enterprise which undertakes any of the foregoing activities provided
that the Executive does not directly participate in such activities and that no
person who directly reports to him participates in such activities. It is
further acknowledged and agreed that the limitation against rendering
professional services shall not limit the Executive's ability to sell or license
products.
As used in this paragraph 8, the term "COMPANY" shall mean the Company and each
of its subsidiaries and the term "CLIENT" shall mean (1) anyone who is a client
of the Company on the Date of Termination or, if the Executive's employment
shall not have terminated, at the time of the alleged prohibited conduct (any
such applicable date being called the "DETERMINATION DATE"); (2) anyone who was
a client of the Company at any time during the one year period immediately
preceding the Determination Date; (3) any prospective client to whom the Company
had made a new business presentation (or similar offering of services) at any
time during the six month period immediately preceding the Determination Date;
and (4) any prospective client to whom the Company made a new business
presentation (or similar offering of services) at any time within six months
after the Date of Termination (but only if the initial discussions between the
Company and such prospective client relating to the rendering of services
occurred prior to the Date of Termination, and only if the Executive
participated in or supervised such discussions). Promptly following the
Determination Date, the Company shall provide to the Executive a list of all
clients (the entities, operating units
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and divisions) of the Company as used herein, which list shall form the basis of
the Executive's covenants pursuant to this Section 8. For purposes of this
clause, it is agreed that a "new business presentation or similar offering of
services" or a "discussion" does not include general mailings, telephone
solicitations, unsolicited credentials presentations not responding to requests
for proposals or incidental contacts but means a formal presentation. In
addition, if any client for whom the Company does NOT serve as "agency of
record" or in a similar capacity is part of a group of companies or conducts
business through more than one entity, division or operating unit, whether or
not separately incorporated (a "CLIENT GROUP"), the term "CLIENT" as used herein
shall include each entity, division and operating unit of the Client Group where
the same management group of the Client Group has the implementing role or
significant influence with respect to contracting for services of the type
rendered by the Company (but not necessarily the ultimate decision-making
authority), BUT shall not include any part of the Client Group where the
management group is not the same management group that has the implementing role
or significant influence with respect to contracting for services of the type
rendered by the Company, it being understood that the Company may have limited
contact with the ultimate decision maker, who may have authority over divisions
with which the Company has no previous relationship such that the Executive
should not be prevented from dealing with such other divisions by virtue of the
covenants contained herein .
Notwithstanding anything to the contrary contained in this paragraph 8(a), if
the Company defaults in the payment to the Executive of any severance
compensation when due under the provisions of paragraph 6(d)(i) above, which
default is not cured within 20 days after written notice thereof to the Company
by the Executive, the restrictions set forth in this paragraph 8(a) shall
terminate unless the Company pays the Executive all amounts then due to the
Executive as determined by the arbitration panel, in which case such
restrictions shall remain in full force and effect. During the pendency of any
dispute as to whether the Company is justified in ceasing to make such severance
payments as permitted under the provisions of paragraph 6(d) above, the
restrictions set forth in this paragraph 8(a) shall remain in full force and
effect.
(b) In the course of the Executive's employment with the
Company he will acquire and have access to confidential or proprietary
information of the Company and/or its clients, including but not limited to,
trade secrets, methods, models, passwords, access to computer files, financial
information and records, computer software programs, agreements and/or contracts
between the Company and its clients, client contacts, the marketing and/or
creative policies and ideas, advertising campaigns, media plans and budgets,
practices, concepts, strategies, and methods of operations, financial or
business projections of the Company, and information about or received from
clients and other companies with which the Company does business. The foregoing
shall be collectively referred to as "CONFIDENTIAL INFORMATION". The Executive
is aware that the confidential information is not readily available to the
public and accordingly, the Executive also agrees that he will not at any time
(whether during the Term or after termination of this Agreement), disclose to
anyone any
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confidential information, or utilize such confidential information for his own
benefit, or for the benefit of third parties. The Executive agrees that the
foregoing restrictions shall apply whether or not any such information is marked
"confidential". The term "confidential information" does not include information
which (i) is or becomes generally available to the public other than by breach
of this provision or (ii) the Executive learns from a third party who he in good
faith and reasonably believes is not under an obligation of confidence to the
Company or a client of the Company. In the event that the Executive becomes
legally required to disclose any confidential information by law or legal or
similar proceeding, he will provide the Company with prompt notice thereof so
that the Company may seek a protective order or other appropriate remedy and/or
waive compliance with the provisions of this paragraph 8(b) to permit a
particular disclosure. In the event that such protective order or other remedy
is not obtained within the time frame of the required disclosure, or that the
Company waives compliance with the provisions of this paragraph 8(b) to permit a
particular disclosure, the Executive will furnish only that portion of the
confidential information which he is legally required to disclose and, at the
Company's expense, will cooperate with the efforts of the Company to obtain a
protective order or other reliable assurance that confidential treatment will be
accorded the confidential information. The Executive further agrees that all
memoranda, disks, files, notes, records or other documents, whether in
electronic form or hard copy (collectively, the "MATERIAL") compiled by him or
made available to him during his employment with the Company (whether or not the
material contains confidential information) which relates to the Company or its
clients shall be the property of the Company and shall be delivered to the
Company on the termination of the Executive's employment with the Company or at
any other time upon request. Except in connection with the Executive's
employment with the Company, the Executive agrees that he will not make or
retain copies or excerpts of the material.
(c) If the Executive commits a breach or is about to commit a
breach, of any of the provisions of paragraphs 8(a) or (b) above, the Company
shall have the right to have the provisions of this Agreement specifically
enforced by the arbitrator appointed under paragraph 19 or by any court having
equity jurisdiction without being required to post bond or other security and
without having to prove the inadequacy of the available remedies at law, it
being acknowledged and agreed that any such breach or threatened breach will
cause irreparable injury to the Company and that money damages will not provide
an adequate remedy to the Company. In addition, the Company may take all such
other actions and remedies available to it under law or in equity and shall be
entitled to such damages as it can show they have sustained by reason of such
breach.
(d) The parties acknowledge that (i) the type and periods of
restriction imposed in the provisions of paragraphs 8(a) and (b) above are fair
and reasonable and are reasonably required in order to protect and maintain the
proprietary interests of the Company described above, other legitimate business
interests of the Company and the goodwill associated with the business of the
Company, (ii) that the business of the Company currently
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extends throughout the United States and other areas of the world, and that the
Executive will engage in such business pursuant to the terms of this Agreement
throughout the United States and other areas of the world, and (iii) that the
time, scope, geographic area and other provisions of this paragraph 8 have been
specifically negotiated by sophisticated commercial parties. It is further
understood and agreed that the clients of the Company may be serviced from any
location and accordingly it is reasonable that the covenants set forth herein
are not limited by narrow geographic area but generally by the location of such
clients and potential clients. The Executive specifically acknowledges that his
being restricted from soliciting and servicing clients and prospective clients
as contemplated by this Agreement will not prevent him from being employed or
earning a livelihood in the type of business conducted by the Company. If any of
the covenants contained in paragraphs 8(a) or (b), or any part thereof, is held
to be unenforceable by reason of its extending for too great a period of time or
over too great a geographic area or by reason of its being too extensive in any
other respect, the parties agree (x) such covenant shall be interpreted to
extend only over the maximum period of time for which it may be enforceable
and/or over the maximum geographic areas as to which it may be enforceable
and/or to the maximum extent in all other respects as to which it may be
enforceable, all as determined by the court or arbitration panel making such
determination and (y) in its reduced form, such covenant shall then be
enforceable, but such reduced form of agreement shall only apply with respect to
the operation of this paragraph 8 in the particular jurisdiction in which such
adjudication is made.
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9. INTELLECTUAL PROPERTY
During the Term, the Executive will disclose to the Company
all ideas, inventions and business plans developed by him during such period
which relate directly or indirectly to the business of the Company and its
subsidiaries, including without limitation, any design, logo, slogan,
advertising campaign or any process, operation, product or improvement which may
be patentable or copyrightable, except to the extent arising out of activities
described in item (y) of paragraph 3(d). The Executive agrees that all patents,
licenses, copyrights, tradenames, trademarks, service marks, planning, marketing
and/or creative policies, advertising campaigns, media campaigns, and budgets,
practices, concepts, strategies, and methods of operations, financial or
business projections, designs, logos, slogans and business plans developed or
created by the Executive in the course of his employment hereunder, either
individually or in collaboration with others, will be deemed works for hire and
the sole and absolute property of the Company, except to the extent arising out
of activities described in item (y) of paragraph 3(d). The Executive agrees,
that at the Company's request and expense, he will take all steps necessary to
secure the rights thereto to the Company by patent, copyright or otherwise.
10. ENFORCEABILITY
The failure of any party at any time to require performance by
another party of any provision hereunder shall in no way affect the right of
that party thereafter to enforce the same, nor shall it affect any other party's
right to enforce the same, or to enforce any of the other provisions in this
Agreement; nor shall the waiver by any party of the breach of any provision
hereof be taken or held to be a waiver of any subsequent breach of such
provision or as a waiver of the provision itself.
11. ASSIGNMENT
This Agreement is a personal contract and the Executive's
rights and obligations hereunder may not be sold, transferred, assigned, pledged
or hypothecated by the Executive. The Company may not assign its rights or
obligations hereunder without the prior consent of the Executive. .
12. MODIFICATION
This Agreement may not be orally canceled, changed, modified
or amended, and no cancellation, change, modification or amendment shall be
effective or binding, unless in writing and signed by the parties to this
Agreement.
13. SEVERABILITY; SURVIVAL
In the event any provision or portion of this Agreement is
determined to be
14
invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall nevertheless be binding upon the parties with
the same effect as though the invalid or unenforceable part had been severed and
deleted. The respective rights and obligations of the parties hereunder shall
survive the termination of the Executive's employment to the extent necessary to
the intended preservation of such rights and obligations.
14. INSURANCE
(a) The Executive agrees that the Company shall have the right
to obtain life insurance on the Executive's life, at the sole expense of the
Company, as the case may be, and with the Company as the sole beneficiary
thereof. The Executive shall (a) cooperate fully in obtaining such life
insurance, (b) sign any necessary consents, applications and other related forms
or documents and (c) at the Company's expense, take any reasonably required
medical examinations.
(b) In the event that the Company directly, or indirectly
through a direct or indirect parent corporation, consummates a public offering
of its capital stock, the Company shall obtain officers and directors liability
insurance which will provide coverage for the Executive in his capacity as an
officer of the Company.
15. NOTICE
Any notice, request, instruction or other document to be given
hereunder by any party hereto to another party shall be in writing and shall be
deemed effective (a) upon personal delivery, if delivered by hand, or (b) three
days after the date of deposit in the mails, postage prepaid if mailed by
certified or registered mail, or (c) on the next business day, if sent by
facsimile transmission (if electronically confirmed) or prepaid overnight
courier service, and in each case, addressed as follows:
IF TO THE EXECUTIVE:
Xxxxxxxx Xxxxxxxx
0 Xxxxxxx Xxxx
Xxxxxxx, Xxxxxxxxxxxxx 00000
Fax: (000) 000-0000
with a copy to:
Brown, Rudnick, Freed & Gesmer, P.C.
Xxx Xxxxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxxxxx X. Xxxxxxxx, Esq.
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Fax: (000) 000-0000
IF TO THE COMPANY:
Xxxxxx.Xxx Ltd.
000 Xxxxxxxx
Xxx Xxxx, XX 00000
Attention: Chief Financial Officer
Fax: (000) 000-0000
with a copy to:
Xxxxx Xxxxxxx Xxxxxxx, Esq.
.0000 Xxxxxxxxxx Xxxx.
Xxxxxxx Xxxxxxxxx, XX 00000
Fax: (000) 000-0000
Any party may change the address to which notices are to be sent by giving
notice of such change of address to the other party in the manner herein
provided for giving notice.
16. APPLICABLE LAW
This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts without
application of conflict of law provisions applicable therein.
17. NO CONFLICT
The Executive represents and warrants that he is not subject
to any agreement, instrument, order, judgment or decree of any kind, or any
other restrictive agreement of any character, which would prevent him from
entering into this Agreement or which would be breached by the Executive upon
his performance of his duties pursuant to this Agreement.
18. ENTIRE AGREEMENT
This Agreement represents the entire agreement between the
Company and the Executive with respect to the subject matter hereof, and all
prior agreements, plans and arrangements relating to the employment of the
Executive by the Company are nullified and superseded hereby .
19. ARBITRATION
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(a) If any dispute arises between the Executive and the
Company that the parties cannot resolve themselves, including any dispute over
the application, validity, construction, or interpretation of this Agreement,
arbitration in accordance with the then-applicable rules of the American
Arbitration Association shall provide the exclusive remedy for resolving any
such dispute, regardless of its nature; provided, however, that the Company may
enforce the Executive's obligations under paragraphs 8 and 9 hereof by an action
for injunctive relief and damages in a court of competent jurisdiction at any
time prior or subsequent to the commencement of an arbitration proceeding as
herein provided.
(b) This paragraph 19 shall apply to claims arising under
state and federal statutes, local ordinances, and the common law. The arbitrator
shall apply the same substantive law that a court with jurisdiction over the
parties and their dispute would apply under the terms of this Agreement. The
arbitrator's remedial authority shall equal the remedial power that a court with
jurisdiction over the parties and their dispute would have. The arbitrator
shall, upon an appropriate motion, dismiss any claim brought in arbitration if
he or she determines that the claim could not properly have been pursued through
court litigation. If the then-applicable rules of the American Arbitration
Association conflict with the procedures of this paragraph 19, the latter shall
apply.
(c) If the parties cannot agree upon an arbitrator, the
parties shall select a single arbitrator from a list of seven arbitrators
provided by the Boston, Massachusetts office of the American Arbitration
Association. All seven listed arbitrators shall be retired judges experienced in
employment law and/or persons actively involved in hearing private cases. If the
parties cannot agree on selecting an arbitrator from that list, then the parties
shall alternately strike names from the list, with the first party to strike
being determined by lot. After each party has used three strikes, the remaining
name on the list shall be the arbitrator.
(d) Each party may be represented by counsel or by another
representative of the party's choice, and each party shall pay its own filing or
administrative fees. The non-prevailing party (as determined by the arbitrator)
shall bear the fees and costs of the arbitrator and the reasonable fees and
costs of the prevailing party's counsel or other representative.
(e) The arbitrator shall render an award and opinion in the
form typical of those rendered in labor arbitrations, and that award shall be
final and binding and non-appealable. To the extent that any part of this
paragraph 19 is found to be legally unenforceable for any reason, that part
shall be modified or deleted in such a manner as to render this paragraph 19 (or
the remainder of this paragraph) legally enforceable and as to ensure that
except as provided in clause (b) of this paragraph 19, all conflicts between the
Company and the Executive shall be resolved by neutral, binding arbitration. The
remainder of this paragraph 19 shall not be affected by any such modification or
deletion but shall be construed as severable and independent. If a court finds
that the arbitration procedures of this paragraph 19 are not absolutely binding,
then the parties intend any arbitration decision
17
to be fully admissible in evidence, given great weight by any finder of fact,
and treated as determinative to the maximum extent permitted by law.
(f) Unless the parties agree otherwise, any arbitration shall
take place in Boston, Massachusetts in such location as agreed to by the Company
and the Executive. If the parties cannot agree upon a location for the
arbitration, the arbitrator shall determine the location within Boston,
Massachusetts.
(G) THE EXECUTIVE HAS READ AND UNDERSTANDS THIS PARAGRAPH 19
WHICH DISCUSSES ARBITRATION. THE EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS
AGREEMENT, THE EXECUTIVE AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING
TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY,
CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF, OR HIS EMPLOYMENT OR
THE TERMINATION THEREOF, TO BINDING ARBITRATION, AND THAT THIS ARBITRATION
PROVISION CONSTITUTES A WAIVER OF THE EXECUTIVE'S RIGHT TO A JURY TRIAL AND
RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE
EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO THE FOLLOWING:
(I) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF
EMPLOYMENT, BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED;
BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH
EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF
EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL
MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH
CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION;
(II) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL.
STATE OR MUNICIPAL STATUTE, INCLUDING, WITHOUT LIMITATION,
TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED, THE
CIVIL RIGHTS ACT OF 1991, THE EQUAL PAY ACT, THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT, AS AMENDED, THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH
DISABILITIES ACT OF 1990, THE FAMILY AND MEDICAL LEAVE ACT OF
1993, THE FAIR LABOR STANDARDS ACT AND THE NEW YORK HUMAN
RIGHTS LAW; AND
(III) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER
FEDERAL, STATE OR LOCAL LAWS OR REGULATIONS RELATING TO
EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.
20. HEADINGS
The headings contained in this Agreement are for reference
purposes only, and shall not affect the meaning or interpretation of this
Agreement.
21. MISCELLANEOUS
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(a) The Company may withhold from any amounts payable under
this Agreement such federal, state or local taxes as shall be required to be
withheld pursuant to any applicable law or regulation.
(b) Following the date hereof and regardless of any dispute
that may arise in the future, the Executive will not disparage the Company; and
the Company will not disparage the Executive.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.
XXXXXX.XXX LTD.
BY: /s/ Xxxxxxx Xxxxx
---------------------------------
NAME:
TITLE:
/s/ Xxxxxxxx Xxxxxxxx
------------------------------------
XXXXXXXX XXXXXXXX
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