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EMPLOYMENT AGREEMENT
BETWEEN
XXXXXXX X. XXXXXX
AND
INTERDIGITAL COMMUNICATIONS CORPORATION
NOVEMBER 18, 1996
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is made this 18th day of November, 1996, by and
between Xxxxxxx X. Xxxxxx, a resident of Malvern, Pennsylvania (the "Employee"),
and InterDigital Communications Corporation, a corporation organized and
existing under the laws of the Commonwealth of Pennsylvania (the "Company").
WHEREAS, the Company is engaged in the business of developing and marketing
advanced digital wireless telecommunications systems using proprietary
technologies for voice and data communications and the licensing of wireless
digital telephone technology (the "Business").
WHEREAS, the Company and Employee have entered into a letter agreement,
dated November 11, 1996, pursuant to which, inter alia, the Company has offered
Employee and Employee has accepted the position of Vice President -
Communications and Investor Relations of the Company (the "Letter Agreement").
WHEREAS, the Letter Agreement contemplates that the Company and Employee
shall enter into this Agreement in order to set forth certain terms and
conditions relating to Employee's employment with the Company.
NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, and intending to be legally bound, the parties, subject to the
terms and conditions set forth herein, agree as follows:
1. Employment and Term. The Company hereby employs Employee and Employee
hereby accepts employment with the Company, as Vice President - Communications
and Investor Relations, (such position, Employee's "Position") for a period
commencing on November 18, 1996 and continuing until employment hereunder is
terminated pursuant to the provisions of Section 9 hereto (the "Term").
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2. Duties. During the term of his employment, Employee shall serve the
Company faithfully and to the best of his ability and shall devote his full
time, attention, skill and efforts to the performance of the duties required by
or appropriate for his Position. Employee agrees to assume such duties and
responsibilities as may be customarily incident to such position, and as may be
reasonably assigned to Employee from time to time by the President or Chief
Executive Officer. Employee shall report to the President or Chief Executive
Officer of the Company.
3. Other Business Activities. During the Term, Employee will not, without
the prior written consent of the Company, directly or indirectly engage in any
other business activities or pursuits whatsoever, except activities in
connection with any charitable or civic activities, personal investments and
serving as an executor, trustee or in other similar fiduciary capacity;
provided, however, that such activities do not interfere with his performance of
his responsibilities and obligations pursuant to this Agreement.
4. Compensation. The Company shall pay Employee, and Employee hereby agrees
to accept, as compensation for all services rendered hereunder and for
Employee's covenant not to compete as provided for in Section 8 hereof, a base
salary at the annual rate of One Hundred and Fifty Five Thousand Dollars
(subject to any increase from time to time, the "Base Salary"). The Base Salary
shall be inclusive of all applicable income, social security and other taxes and
charges which are required by law to be withheld by the Company or which are
requested to be withheld by Employee, and which shall be withheld and paid in
accordance with the Company's normal payroll practice for its similarly situated
employees from time to time in effect. In addition to the Base Salary,
commencing in 1997, Employee shall be eligible to participate in whatever bonus
plan, if any, the Company shall adopt for its executive officers, including
without limitation, the Executive Bonus Plan the Company currently intends to
develop and implement with the assistance of Ernst & Young. Notwithstanding the
foregoing two sentences, the Company shall be under no obligation to develop
and/or implement any bonus plan, including without limitation, the aforesaid
Executive
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Bonus Plan, or to continue any such plan, if adopted. Employee shall also be
entitled to receive stock options as more particularly described in the Letter
Agreement.
5. Benefits and Expenses. Employee shall be entitled to receive those
employee benefits (including expense reimbursement) as shall be provided to
similarly situated executive employees of the Company ("Benefits").
6. Confidentiality. Employee recognizes and acknowledges that the
Proprietary Information (as hereinafter defined) is a valuable, special and
unique asset of the Business of the Company. As a result, both during the Term
and thereafter, Employee shall not, without the prior written consent of the
Company, for any reason either directly or indirectly divulge to any third-party
or use for his own benefit, or for any purpose other than the exclusive benefit
of the Company, any confidential, proprietary, business and technical
information or trade secrets of the Company or of any subsidiary or affiliate of
the Company ("Proprietary Information") revealed, obtained or developed in the
course of his employment with the Company. Such Proprietary Information shall
include, but shall not be limited to, the intangible personal property described
in Section 7(b) hereof, any information relating to methods of production and
manufacture, research, computer codes or instructions (including source and
object code listings, program logic algorithms, subroutines, modules or other
subparts of computer programs and related documentation, including program
notation), computer processing systems and techniques, concepts, layouts,
flowcharts, specifications, know-how, any associated user or service manuals or
other like textual materials (including any other data and materials used in
performing the Employee's duties), all computer inputs and outputs (regardless
of the media on which stored or located), hardware and software configurations,
designs, architecture, interfaces, plans, sketches, blueprints, and any other
materials prepared by the Employee in the course of, relating to or arising out
of his employment by the Company, or prepared by any other Company employee,
representative, or contractor for the Company, or its customers (including
information and other material relating to the ASIC), costs, business studies,
business procedures, finances, marketing data,
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methods, plans and efforts, the identities of licensees, strategic partners,
customers, contractors and suppliers and prospective licensees, strategic
partners, customers, contractors and suppliers, the terms of contracts and
agreements with licensees, strategic partners, customers, contractors and
suppliers, the Company's relationship with actual and prospective licensees,
strategic partners, customers, contractors and suppliers and the needs and
requirements of, and the Company's course of dealing with, any such actual or
prospective licensees, strategic partners, customers, contractors and suppliers,
personnel information, customer and vendor credit information, and any other
materials that have not been made available to the general public, provided,
that nothing herein contained shall restrict Employee's ability to make such
disclosures during the course of his employment as may be necessary or
appropriate to the effective and efficient discharge of the duties required by
or appropriate for his Position or as such disclosures may be required by law;
and further provided, that nothing herein contained shall restrict Employee from
divulging or using for his own benefit or for any other purpose any Proprietary
Information that is readily available to the general public so long as such
information did not become available to the general public as a direct or
indirect result of Employee's breach of this Section 6. Failure by the Company
to xxxx any of the Proprietary Information as confidential or proprietary shall
not affect its status as Proprietary Information under the terms of this
Agreement.
7. Property.
(a) All right, title and interest in and to Proprietary Information
shall be and remain the sole and exclusive property of the Company. During
the Term, Employee shall not remove from the Company's offices or premises any
documents, records, notebooks, files, correspondence, reports, memoranda or
similar materials of or containing Proprietary Information, or other materials
or property of any kind belonging to the Company unless necessary or appropriate
in accordance with the duties and responsibilities required by or appropriate
for his Position and, in the event that such materials or property are removed,
all of the foregoing shall be returned to their proper files or places of
safekeeping as promptly as possible after the removal shall serve its specific
purpose. Employee
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shall not make, retain, remove and/or distribute any copies of any of the
foregoing for any reason whatsoever except as may be necessary in the discharge
of his assigned duties and shall not divulge to any third person the nature of
and/or contents of any of the foregoing or of any other oral or written
information to which he may have access or with which for any reason he may
become familiar, except as disclosure shall be necessary in the performance of
his duties; and upon the termination of his employment with the Company, he
shall leave with or return to the Company all originals and copies of the
foregoing then in his possession, whether prepared by Employee or by others.
(b) (i) Employee agrees that all right, title and interest in and to any
innovations, designs, systems, analyses, ideas for marketing programs, and all
copyrights, patents, trademarks and trade names, or similar intangible personal
property which have been or are developed or created in whole or in part by
Employee (1) at any time and at any place while the Employee is employed by
Company and which, in the case of any or all of the foregoing, are related to
and used in connection with the Business of the Company, (2) as a result of
tasks assigned to Employee by the Company, or (3) from the use of premises or
personal property (whether tangible or intangible) owned, leased or contracted
for by the Company (collectively, the "Intellectual Property"), shall be and
remain forever the sole and exclusive property of the Company. The Employee
shall promptly disclose to the Company all Intellectual Property, and the
Employee shall have no claim for additional compensation for the Intellectual
Property.
(ii) The Employee acknowledges that all the Intellectual Property
that is copyrightable shall be considered a work made for hire under United
States Copyright Law. To the extent that any copyrightable Intellectual Property
may not be considered a work made for hire under the applicable provisions of
the United States Copyright Law, or to the extent that, notwithstanding the
foregoing provisions, the Employee may retain an interest in any Intellectual
Property that is not copyrightable, the Employee hereby irrevocably assigns and
transfers to the Company any and all right, title, or interest that the Employee
may have in the Intellectual Property under copyright, patent, trade secret and
trademark law, in perpetuity or for the longest period otherwise permitted by
law, without the
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necessity of further consideration. The Company shall be entitled to obtain and
hold in its own name all copyrights, patents, trade secrets, and trademarks with
respect thereto.
(iii) Employee further agrees to reveal promptly all information
relating to the same to an appropriate officer of the Company and to
cooperate with the Company and execute such documents as may be necessary or
appropriate (1) in the event that the Company desires to seek copyright, patent
or trademark protection, or other analogous protection, thereafter relating to
the Intellectual Property, and when such protection is obtained, to renew and
restore the same, or (2) to defend any opposition proceedings in respect of
obtaining and maintaining such copyright, patent or trademark protection, or
other analogous protection.
(iv) In the event the Company is unable after reasonable effort to
secure Employee's signature on any of the documents referenced in Section
7(b)(iii) hereof, whether because of Employee's physical or mental incapacity or
for any other reason whatsoever, Employee hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Employee's
agent and attorney-in-fact, to act for and in his behalf and stead to execute
and file any such documents and to do all other lawfully permitted acts to
further the prosecution and issuance of any such copyright, patent or trademark
protection, or other analogous protection, with the same legal force and effect
as if executed by Employee.
8. Covenant Not to Compete. The Employee shall not, during the Term and
thereafter for the Restricted Period (as defined below), do any of the
following, directly or indirectly, without the prior written consent of the
Company:
(a) engage or participate in any business activity competitive with the
Company's Business, or the business of any of the Company's subsidiaries or
affiliates, as same are conducted during the Term with respect to any period
during the Term, or upon the termination of Employee's employment hereunder with
respect to any period thereafter;
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(b) become interested in (as owner, stockholder, lender, partner,
co-venturer, director, officer, employee, agent, consultant or otherwise) any
person, firm, corporation, association or other entity engaged in any business
that is competitive with the Business of the Company or of any subsidiary or
affiliate of the Company as conducted during the Term with respect to any period
during the Term, or upon the termination of Employee's employment hereunder with
respect to any period thereafter, or become interested in (as owner,
stockholder, lender, partner, co-venturer, director, officer, employee, agent,
consultant or otherwise) any portion of the business of any person, firm,
corporation, association or other entity where such portion of such business is
competitive with the business of the Company or of any subsidiary or affiliate
of the Company as conducted during the Term with respect to any period during
the Term, or upon termination of Employee's employment hereunder with respect to
any period thereafter. Notwithstanding the foregoing, Employee may hold not more
than one percent (1%) of the outstanding securities of any class of any
publicly-traded securities of a company that is engaged in activities referenced
in Section 8(a) hereof;
(c) influence or attempt to influence any licensee, strategic partner,
supplier, or customer of the Company or potential licensee, strategic partner,
supplier or customer of the Company to terminate or modify any written or oral
agreement or course of dealing with the Company; or
(d) influence or attempt to influence any person to either (i) terminate
or modify his employment, consulting, agency, distributorship or other
arrangement with the Company, or (ii) employ or retain, or arrange to have any
other person or entity employ or retain, any person who has been employed or
retained by the Company as an employee, consultant, agent or distributor of the
Company at any time during the twelve (12) month period immediately preceding
the termination of Employee's employment hereunder.
For purposes of this Section 8, the Restricted Period shall constitute (as
applicable) (i) the period, if any, that Employee shall receive severance as set
forth in Section 9 hereof, (ii) in the event Employee's employment hereunder is
terminated for cause pursuant to Section 9 hereof, a period of one (1) year
following
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such termination, or (iii) in the event that Employee terminates this Agreement
without Good Reason, so long as the Company voluntarily pays severance to
Employee (which the Company shall be under no obligation to do), for the period
that Employee shall receive such severance, but in no event for a period longer
than one (1) year.
9. Termination. Employee's employment hereunder may be terminated during
the Term upon the occurrence of any one of the events described in this Section
9. Upon termination, Employee shall be entitled only to such compensation and
benefits as described in this Section 9.
9.1. Termination for Disability.
(a) In the event of a long-term disability of the Employee (as such
term is defined in the Company's Long- Term Disability Plan) such that the
Employee is not otherwise qualified to perform the essential functions of the
job with or without reasonable accommodation ("Disability"), Employee's
employment hereunder may be terminated by the Company.
(b) In the event of a termination of Employee's employment hereunder
pursuant to Section 9.1(a), Employee will be entitled to receive all accrued and
unpaid (as of the date of such termination) Base Salary and Benefits and other
forms of compensation and bonus payable or provided in accordance with the terms
of any then existing compensation, bonus or benefit plan or arrangement ("Other
Compensation"), including payments prescribed under any disability or life
insurance plan or arrangement in which Employee is a participant or to which
Employee is a party as an employee of the Company. In addition, for a period of
one year following such termination, Employee shall be entitled to receive (i)
regular installments of Base Salary at the rate in effect at the time of such
termination, such amount being reduced by the amount of payments received by the
Employee with respect to this period pursuant to any Social Security entitlement
or any long term disability or any other employee benefit plan, policy or
program maintained to provide benefits in the event of disability in which the
Employee was entitled to participate at the time of termination under Section
9.1(a), and (ii) medical and dental coverage on terms and conditions comparable
to those
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most recently provided to the Employee pursuant to this Agreement, to the extent
such coverage is not provided under other Company policies, plans or programs
relating to Disability. Except as specifically set forth in this Section 9.1(b),
the Company shall have no liability or obligation to Employee for compensation
or benefits hereunder by reason of such termination.
(c) For purposes of this Section 9.1, the determination as to whether
Employee has a long-term disability (as such term is defined in the Company's
Long-Term Disability Plan) shall be made by a licensed physician selected by the
Company (and reasonably acceptable to Employee) and shall be based upon a full
physical examination and good faith opinion by such physician.
9.2. Termination by Death. In the event that Employee dies during the Term,
Employee's employment hereunder shall be terminated thereby and the Company
shall pay to Employee's executors, legal representatives or administrators an
amount equal to the accrued and unpaid portion of his Base Salary, Benefits and
Other Compensation up through the date on which he dies. Except as specifically
set forth in this Section 9.2, the Company shall have no liability or obligation
hereunder to Employee's executors, legal representatives, administrators, heirs
or assigns or any other person claiming under or through him by reason of
Employee's death, except that Employee's executors, legal representatives or
administrators will be entitled to receive the payment prescribed under any
death or disability benefits plan in which he is a participant as an employee of
the Company, and to exercise any rights afforded under any compensation or
benefit plan then in effect.
9.3. Termination for Cause.
(a) The Company may terminate Employee's employment hereunder at any
time for "cause" upon written notice to Employee. For purposes of this
Agreement, "cause" shall mean: (i) any material breach by Employee of any of his
obligations under this Agreement, which breach is not cured within thirty (30)
days after Employee's receipt of written notification from the Company of such
breach, (ii) other conduct of Employee involving any type of willful misconduct
with respect to the Company, including without limitation fraud, embezzlement,
theft
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or proven dishonesty in the course of his employment or conviction of a felony.
(b) In the event of a termination of Employee's employment hereunder
pursuant to Section 9.3(a), Employee shall be entitled to receive all accrued
but unpaid (as of the effective date of such termination) Base Salary, Benefits
and Other Compensation. All Base Salary, Benefits and Other Compensation shall
cease at the time of such termination, subject to the terms of any benefit or
compensation plan then in force and applicable to Employee. Except as
specifically set forth in this Section 9.3, the Company shall have no liability
or obligation hereunder, including without limitation for any severance
whatsoever, by reason of such termination.
9.4. Termination Without Cause.
(a) The Company may terminate Employee's employment hereunder at any
time, for any reason, without cause, effective upon the date designated by
the Company upon thirty (30) days prior written notice to Employee. Company may
elect to have Employee remain absent from the workplace and cease Company
business during all or part of such thirty (30) day period.
(b) In the event of a termination of Employee's employment hereunder
pursuant to Section 9.4(a) (including by the Company's delivery of written
notice not to renew the Term in accordance with the provisions of Section 1
hereof in the event such termination is not for cause), Employee shall be
entitled to receive all accrued but unpaid (as of the effective date of such
termination) Base Salary, Benefits and Other Compensation. In addition, Employee
shall be entitled to receive (i) severance in an amount equal to Employee's Base
Salary, and (ii) medical and dental coverage on terms and conditions comparable
to those most recently provided to the Employee pursuant to this Agreement, both
for the period of one year commencing upon the date of such termination. Such
severance shall be inclusive of all applicable income, social security and other
taxes and charges which are required by law to be withheld by the Company and
shall be withheld and paid in accordance with the Company's normal payroll
practice for its executives from time to time in effect. All Base Salary,
Benefits and Bonuses shall cease at the time of such termination,
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subject to the terms of any benefit or compensation plan then in force and
applicable to Employee. Except as specifically set forth in this Section 9.4,
the Company shall have no liability or obligation hereunder by reason of such
termination.
9.5. Termination by Employee.
(a) Employee may terminate Employee's employment hereunder at any time,
for Good Reason or without Good Reason, effective upon the date designated
by Employee in written notice of the termination of his employment hereunder
pursuant to this Section 9.5(a); provided that, such date shall be at least
thirty (30) days after the date of such notice. For purposes of this Agreement,
Good Reason shall mean: (i) the failure by the Company to pay in a timely manner
Base Salary or any other material form of compensation or material benefit to be
paid or provided to Employee hereunder, or (ii) any material breach, not
encompassed within clause (i) of this Section 9.5(a), of the obligations of the
Company under this Agreement which breach is not cured within thirty (30) days
after the Company's receipt of written notification from the Employee of such
breach.
(b) In the event of a termination of Employee's employment hereunder
pursuant to Section 9.5(a) hereof, Employee shall be entitled to receive all
accrued but unpaid (as of the effective date of such termination) Base Salary,
Benefits and Other Compensation. In addition, solely if such termination is for
Good Reason, Employee shall be entitled to receive (i) severance in an amount
equal to the Employee's Base Salary, and (ii) medical and dental coverage on
terms and conditions comparable to those most recently provided to the Employee
pursuant to this Agreement, both for the period of one year commencing upon the
date of such termination. Such severance shall be payable as set forth in
Section 9.4(b) hereof. Except as specifically set forth in this Section 9.5(b),
all Base Salary, Benefits and Other Compensation shall cease at the time of such
termination, subject to the terms of any benefit or compensation plan then in
force and applicable to Employee. Except as specifically set forth in this
Section 9.5, the Company shall have no liability or obligation hereunder by
reason of such termination.
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9.6. Change of Control.
(a) If there is a Change of Control during the Term, and Employee's
employment with the Company hereunder is terminated within one (1) year
following such Change of Control by the Company (except for cause) or by
Employee (whether or not for Good Reason), Employee shall be entitled to receive
all accrued but unpaid (as of the effective date of such termination) Base
Salary, Benefits and Other Compensation. In addition, (i) Employee shall be
entitled to receive, on the date of such termination, an amount equal to two
years' worth of Employee's Base Salary, and (ii) all stock options granted to
Employee by Company which pursuant to the terms of the applicable stock option
plan vest upon a Change in Control (e.g., Section 17(b) of the 1995 Stock Option
Plan for Employees and Outside Directors) shall vest. Except as specifically set
forth in this Section 9.6, all Base Salary, Benefits and Other Compensation
shall cease at the time of such termination, subject to the terms of any benefit
or compensation plans then in force and applicable to Employee, and the Company
shall have no liability or obligation hereunder by reason of such termination.
(b) For purposes of this Section 9.6, a "Change of Control" means the
acquisition (including by merger or consolidation, or by the issuance by the
Company of its securities) by one or more persons in one transaction or a series
of related transactions, of more than fifty percent (50%) of the voting power
represented by the outstanding stock of the Company on the date hereof. For
these purposes,"Person" means an individual, partnership, corporation, joint
venture, association, trust, unincorporated association, other entity or
association.
9.7. Termination for Absenteeism
(a) Regular attendance at work or in conducting work is an essential
element of Employee's job. Without limiting the Company's right to terminate
Employee pursuant to Section 9.1 or 9.3 herein, in the event that Employee is
absent for more than one hundred and fifty (150) days within any twelve (12)
month period, Employee's employment hereunder may be terminated by Company.
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(b) In the event of a termination of Employee's employment hereunder
pursuant to Section 9.7(a), Employee will be entitled to receive all accrued and
unpaid (as of the date of such termination) Base Salary and Benefits and other
forms of compensation and bonus payable or provided in accordance with the terms
of any then existing compensation, bonus or benefit plan or arrangement ("Other
Compensation"), including payments prescribed under any disability or life
insurance plan or arrangement in which Employee is a participant or to which
Employee is a party as an employee of the Company. In addition, for a period of
one year following such termination, Employee shall be entitled to receive (i)
regular installments of Base Salary at the rate in effect at the time of such
termination, such amount being reduced by the amount of payments received by the
Employee with respect to this period pursuant to any Social Security entitlement
or any long term disability or any other employee benefit plan, policy or
program maintained to provide benefits in the event of disability in which the
Employee was entitled to participate at the time of termination under Section
9.7(a), and (ii) medical and dental coverage on terms and conditions comparable
to those most recently provided to the Employee pursuant to this Agreement, to
the extent such coverage is not provided under other Company policies, plans or
programs relating to Disability. Except as specifically set forth in this
Section 9.7(b), the Company shall have no liability or obligation to Employee
for compensation or benefits hereunder by reason of such termination.
10. Other Agreements. Employee represents and warrants to the Company that:
(a) There are no restrictions, agreements or understandings whatsoever
to which Employee is a party which would prevent or make unlawful
Employee's execution of this Agreement or Employee's employment hereunder, or
which are or would be inconsistent or in conflict with this Agreement or
Employee's employment hereunder, or would prevent, limit or impair in any way
the performance by Employee of his obligations hereunder,
(b) Employee's execution of this Agreement and Employee's employment
hereunder shall not constitute a breach of
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any contract, agreement or understanding, oral or written, to which
Employee is a party or by which Employee is bound, and
(c) Employee is free to execute this Agreement and to enter into the
employ of the Company pursuant to the provisions set forth herein.
(d) Employee shall disclose the existence and terms of the restrictive
covenants set forth in this Agreement to any employer that the Employee may work
for during the term of this Agreement (which employment is not hereby
authorized) or after the termination of the Employee's employment at the
Company.
11. Survival of Provisions. The provisions of this Agreement set forth in
Sections 6, 7, 8, 9 (solely with respect to the payment obligations of the
Company to Employee, if any, set forth therein), 10 and 21 hereof shall survive
the termination of Employee's employment hereunder. If for any reason Employee
shall continue to be employed by the Company following the termination of
Employee's employment hereunder, Employee shall have no right to receive any
severance or other payments hereunder until Employee ceases to be employed by
the Company, whereupon Employee's right to severance or other payments, if any,
shall be governed by the provisions of Section 9 hereof with respect to the
particular circumstances involved in the Employee's termination of employment.
12. Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the Company and Employee and their respective successors,
executors, administrators, heirs and/or permitted assigns; provided, however,
that neither Employee nor the Company may make any assignments of this Agreement
or any interest herein, by operation of law or otherwise, without the prior
written consent of the other parties hereto.
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13. Employee Benefits. This Agreement shall not be construed to be in lieu
or to the exclusion of any other rights, benefits and privileges to which
Employee may be entitled as an employee of the Company under any retirement,
pension, profit-sharing, insurance, hospital or other plans or benefits which
may now be in effect or which may hereafter be adopted.
14. Notice. Any notice or communication required or permitted under this
Agreement shall be made in writing and sent by certified or registered mail,
return receipt requested, by hand delivery, or by recognized overnight courier,
addressed as follows:
If to Employee:
Xxxxxxx X. Xxxxxx
c/o InterDigital Communications Corporation
000 Xxxxx Xxxxxx
Xxxx xx Xxxxxxx, Xxxxxxxxxxxx 00000
If to Company:
InterDigital Communications Corporation
000 Xxxxx Xxxxxx
Xxxx xx Xxxxxxx, Xxxxxxxxxxxx 00000
Attn: Xxxxx Xxxxxxxx, Chairman
with a copy to:
Pepper, Xxxxxxxx & Xxxxxxx
3000 Two Xxxxx Square
00xx xxx Xxxx Xxxxxxx
Xxxxxxxxxxxx, XX 00000
Xxxxx X. Xxxxxxx, Esquire
or to such other address as either party may from time to time duly specify by
notice given to the other party in the manner specified above.
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15. Entire Agreement; Amendments. This Agreement and the Letter Agreement
contain the entire agreement and understanding of the parties hereto relating to
the subject matter hereof, and merges and supersedes all prior and
contemporaneous discussions, agreements and understandings of every nature
between the parties hereto relating to the employment of Employee with the
Company. The provisions of this Agreement supersede any inconsistent provisions
contained in the Letter Agreement. The balance of the Letter Agreement shall
remain in full force and effect and unaffected hereby. This Agreement may not be
changed or modified, except by an Agreement in writing signed by each of the
parties hereto.
16. Waiver. The waiver of the breach of any term or provision of this
Agreement shall not operate as or be construed to be a waiver of any other or
subsequent breach of this Agreement.
17. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the Commonwealth of Pennsylvania.
18. Invalidity. In case any one or more of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
the validity of any other provision of this Agreement, and such provision(s)
shall be deemed modified to the extent necessary to make it enforceable.
19. Section Headings. The section headings in this Agreement are for
convenience only; they form no part of this Agreement and shall not affect its
interpretation.
20. Number of Days. In computing the number of days for purposes of this
Agreement, all days shall be counted, including Saturdays, Sundays and legal
holidays; provided, however, that if the final day of any time period falls on a
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Saturday, Sunday or day which is a holiday in the Commonwealth of Pennsylvania,
then such final day shall be deemed to be the next day which is not a Saturday,
Sunday or legal holiday.
21. Specific Enforcement; Extension of Period.
(a) Employee acknowledges that the restrictions contained in Sections
6, 7, and 8 hereof are reasonable and necessary to protect the legitimate
interests of the Company and its affiliates and that the Company would not have
entered into this Agreement in the absence of such restrictions. Employee also
acknowledges that any breach by him of Sections 6, 7, or 8 hereof will cause
continuing and irreparable injury to the Company for which monetary damages
would not be an adequate remedy. The Employee shall not, in any action or
proceeding to enforce any of the provisions of this Agreement, assert the claim
or defense that an adequate remedy at law exists. In the event of such breach by
Employee, the Company shall have the right to enforce the provisions of Sections
6, 7, and 8 of this Agreement by seeking injunctive or other relief in any
court, and this Agreement shall not in any way limit remedies of law or in
equity otherwise available to the Company. If an action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to recover, in addition to any other relief, reasonable
attorneys' fees, costs and disbursements. In the event that the provisions of
Sections 6, 7, or 8 hereof should ever be adjudicated to exceed the time,
geographic, or other limitations permitted by applicable law in any applicable
jurisdiction, then such provisions shall be deemed reformed in such jurisdiction
to the maximum time, geographic, or other limitations permitted by applicable
law.
(b) In the event that Employee shall be in breach of any of the
restrictions contained in Section 8 hereof, then the Restricted Period shall be
extended for a period of time equal to the period of time that Employee is in
breach of such restriction.
22. Consent to Suit. Any legal proceeding arising out of or relating to
this Agreement shall be instituted in the District Court of the Eastern District
of Pennsylvania, or if
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such court does not have jurisdiction or will not accept jurisdiction, in any
court of general jurisdiction in the Commonwealth of Pennsylvania, and the
Employee hereby consents to the personal and exclusive jurisdiction of such
court and hereby waives any objection that the Employee may have to the laying
of venue of any such proceeding and any claim or defense of inconvenient forum.
23. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall be deemed to be one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
the day and year first written above.
By: /s/ Xxxxxxx Xxxx By: /s/ Xxxxxxx X. Xxxxx
--------------------------------- -------------------------------
Xxxxxxx Xxxx Xxxxxxx X. Xxxxx
Title: Chief Executive Officer Title: President
[CORPORATE SEAL]
/s/ Xxxxxxx X. Xxxxxx
--------------------------------
Xxxxxxx X. Xxxxxx
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