EMPLOYMENT AGREEMENT
Exhibit 10.13
THIS AGREEMENT made this February 8, 2010 is by and between Kips Bay Medical, Inc., a
Delaware Corporation (the “Company”), and Xxxxx Xxxxxx a resident of the State of Minnesota
(the “Employee”).
WHEREAS, the parties wish to provide for the employment of the Employee by the Company; and
WHEREAS, the Company desires reasonable protection of its confidential business and technical
information, which has been and will be acquired, and is being developed by the Company, at
substantial expense.
NOW, THEREFORE, in consideration of mutual promises contained herein, the Company and the
Employee, each intending to be legally bound, agree as follows:
1. Employment. Subject to all of the terms and conditions of this Agreement, the
Company agrees to employ the employee as Vice President of Finance/CFO and the Employee
accepts this employment.
2. Duties. The Employee will make the best use of his/her energy, knowledge and
training in advancing the Company’s interest. He/she will diligently and conscientiously perform
the duties of Vice President of Finance/CFO for the Company, as such duties may be defined
by the Company’s Board of Directors and such other tasks as may from time to time be reasonably
required to further the growth of the Company. The Employee will make every effort to avoid
using any trade secrets or confidential information that he/she may have in his/her possessions
from any previous employer. Employee’s work will be confined to new developments created at the
Company or in the public domain. This will help to avoid any conflict with Employee’s previous
employers.
3. Term. The Employee shall be employed on an “at will” basis. Either party may
terminate the employment relationship created by this agreement for any reason by giving ten (10)
working days prior written notice to the other party. Because the employment relationship is “at
will,” the Employee shall have no right to continued employment, and the Company may terminate the
Employee for any reason (other than because of Employee’s race, sex, age or other legally protected
category) at any time. If this Agreement is terminated by the Company, Employee shall not be
entitled to any severance benefits. The Company may, in its sole discretion, provide severance
benefits in certain circumstances to a terminated employee. The provision of severance benefits to
a terminated employee, however, shall not imply a policy, practice of obligation of providing
severance benefits to any other terminated employee.
No document or statement (oral or written) by the Company or its officers will create a right to
continued employment or a right to severance benefits for a terminated employee.
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4. Compensation.
(a) Salary. The Company shall pay the Employee a salary of
$7,115.38 bi-weekly ($185,000 annually).
(b) Benefits. The Employee will be entitled to participate in benefit plans
which may be established by the Board of Directors of the Company.
(c) Expenses. The Company, shall reimburse the Employee for all ordinary and
necessary business expenses the Employee incurs while performing his/her duties under this
Agreement, provided that the Employee accounts properly for such expenses to the Company in
accordance with the general corporate policy of the Company as determined by the Company’s
Board of Directors and in accordance with the requirements of Internal Revenue Service
regulations relating to substantiation of expenses.
5. Inventions.
(a) “Inventions,” as used in this Section 5, means any discoveries, designs,
improvements or software (whether or not they are in writing or reduced to practice) or
works of authorship (whether or not they can be patented or copyrighted) that the Employee
makes, authors or conceives (ether alone or with others) and that:
(i) concern directly the Company’s products, research or development;
(ii) result from any work the Employee performs for the Company; or
(iii) use the Company’s equipment, facilities, or trade secret information.
(b) The Employee agrees that all Inventions he/she makes during the term of this
Agreement will be the sole and exclusive property of the Company. The Employee will, with
respect to any such Invention:
(i) keep current, accurate, and complete records, which will belong to the
Company and be kept and stored on the Company’s premises while the Employee is
employed by the Company;
(ii) promptly and fully disclose the existence and describe the nature of the
Invention to the Company and in writing (and without request);
(iii) assign (and the Employee does hereby assign) to the Company all of
his/her rights to the Invention, and applications he/she makes for patents or
copyrights in any country, and any patents or copyrights granted to him/her in any
country; and
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(iv) acknowledge and deliver promptly to the Company any written instruments,
and perform any other reasonable acts necessary in the Company’s opinion and at its
expense to preserve property rights in the Invention against forfeiture,
abandonment, or loss and to obtain and maintain letters, patents and/or copyrights
on the Invention and to vest the entire right and title to the Invention in the
Company, provided that the Employee makes no warranty or representation to the
Company as to rights against third parties hereunder.
(c) The requirements of this subsection 5(b) do not apply to an Invention for which no
equipment, facility, or trade secret information of the Company was used and which was
developed entirely on the Employee’s own time, and which:
(i) does not relate directly to the Company’s business or to the Company’s
actual research or development; and
(ii) does not result from any work the Employee performed for the Company.
Except as previously disclosed to the Company in writing, the Employee does not have
and will not assert any claims to or rights under any Inventions as having been
made, conceived, authored, or acquired by the Employee prior to his/her employment
hereunder.
6. Confidential Information.
(a) “Confidential Information,” as used in this Section 6, means information
that is not generally known and that is proprietary to the Company or that the Company is
obligated to treat as proprietary. This information includes, without limitation:
(i) trade secret information about the Company and its products or services;
(ii) “Inventions,” as defined in subsection 5(a) above;
(iii) information concerning the Company’s business, as the Company has
conducted it or as it may conduct it in the future; and
(iv) information concerning any of the Company’s past, current, or possible
future products, including (without limitation) information about the Company’s
research, development, engineering, purchasing, manufacturing, servicing, finances,
marketing or selling.
Any information that reasonably can be expected to be treated as Confidential Information will be
presumed to be Confidential Information (whether the Employee or other originated it and regardless
of how he/she obtained it).
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(b) Except as required in his/her duties to the Company, the Employee will not, during
his/her employment and for all times after termination of his/her employment with the
Company, use or disclose Confidential Information to any person not authorized by the
Company to receive it, excluding Confidential Information:
(i) which becomes publicly available by a source other than the Employee;
(ii) which is received by the Employee after termination of his/her employment
hereunder from a source who did not obtain the information directly or indirectly
from employees or agents of the Company; or
(iii) for which disclosure thereof the Company has consented in writing. When
the Employee’s employment with the Company ends, he/she will promptly turn over to
the Company all records and any compositions, articles, devices, apparatus and other
items that disclose, describe, or embody Confidential Information including all
copies, reproductions, and specimens of Confidential Information in his/her
possession regardless of who prepared them.
7. Competitive Activities. The Employee agrees that during his/her employment with
the Company and for a period of one (1) year after his/her employment with the Company ends:
(a) He/she will not alone, or in any capacity with another firm:
(i) directly or indirectly engage in any commercial activity that is
competitive with any of the Company’s business in which the Employee participated
while he/she was employed by the Company or any affiliate thereof nor will he/she
participate in the management or operation of, or become a significant investor in,
any venture or enterprise of whatever kind as a principal officer, director,
employee, representative, agent or shareholder of any entity whose business is the
design, development, production, marketing or servicing of any product or service
competitive with the business of the Company as it exists at the time his/her
employment with the Company or any affiliate thereof is terminated;
(ii) solicit or in any way interfere or attempt to interfere with the Company’s
relationships with any of its current or potential customers; or
(iii) employ or attempt to employ any of the Company’s employees on behalf of
any other entity competing with the Company, provided that, nothing in this Section
7 shall restrict the Employee’s employment by or association with any entity,
venture, or enterprise which engages in a business with a product or service
competitive with any product or service of the Company so long as the following
conditions are complied with: (a) the Employee’s employment or association with
such entity, venture or enterprise is limited to work which does
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not involve or relate to the design, development, production, marketing or
servicing of a product or service which is directly competitive with any product or
service of the company; and (b) the Employee’s employer takes reasonable measures to
insure that the Employee is not involved with or consulted in any aspect of the
design, development, production, marketing, or servicing of such competitive product
or service.
(b) Employee will, prior to accepting employment with any new employer, inform that
employer of this Agreement and provide that employer with a copy of Section 7 of this
Agreement, provided that he/she reasonably believed his/her new position is or may be
contrary to this Agreement.
8. Conflicting Business. Unless prior written approval is obtained from the Company’s
Board of Directors or an appropriate committee of the Board, the Employee agrees that he/she will
not transact business with the Company personally, or as agent, owner, partner, or shareholder of
any other entity. The Employee further agrees that he/she will not engage in any business activity
or outside employment that may be in conflict with the Company’s proprietary or business interests.
9. No Adequate Remedy. The Employee understands that if he/she fails to fulfill
his/her obligations under Sections 5, 6, 7 or 8 of this Agreement, the damages to the Company would
be very difficult to determine. Therefore, in addition to any other rights or remedies available
to the Company at law, in equity or by statute, the Employee hereby consents to the specific
enforcement of Sections 5, 6, 7 or 8 of this Agreement by the Company through an injunction or
restraining order issued by any appropriate court.
10. Miscellaneous.
(a) Successors and Assigns. This Agreement may not be assigned by the
Employee, except as provided in the next sentence. This Agreement may not be assigned by
the Company without the Employee’s consent, which consent shall not be unreasonably
withheld. In any event, the Company may assign this Agreement without the consent of the
Employee in connection with a merger, consolidation, assignment, sale or other disposition
of substantially all of its assets or business or the assets or business of a division of
the Company.
(b) Modification. This Agreement may be modified or amended only by a writing
signed by each of the parties hereto.
(c) Governing Law. The laws of the State of Minnesota shall govern the
validity, construction, and performance of this Agreement.
(d) Construction. Wherever possible, each provision of this Agreement shall be
interpreted so that it is valid under applicable law. If any provision of this Agreement is
to any extent invalid under applicable law in any jurisdiction, that provision shall still
be effective to the extent it remains valid. The remainder of this Agreement also shall
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continue to be valid, and the entire Agreement shall continue to be valid in other
jurisdictions.
(e) Non-Waiver. No failure or delay by any of the parties hereto in exercising
any right or remedy under this Agreement shall waive any provision of this Agreement. Any
single or partial exercise by either of the parties hereto of any right or remedy under this
Agreement shall not preclude the party from otherwise or further exercising its rights or
remedies, or any other rights or remedies granted by any law or any related document.
(f) Captions. The headings in this Agreement are for convenience only and
shall not affect the interpretation of this Agreement.
(g) Notices. All notices and other communications required or permitted under
this Agreement shall be in writing and hand delivered or sent by registered first-class
mail, postage prepaid. Such notices and other communication shall be effective upon receipt
if hand delivered and shall be effective five (5) business days after mailing if sent by
mail to the following addresses, or such other addresses as either party shall have notified
the other party:
If to the Company:
| Kips Bay Medical, Inc. | ||
| 0000 Xxxxxxxxx Xxxx Xxxxx 000 | ||
| Xxxxxxxxxxx, XX 00000 |
If to the Employee:
| Xxxxx Xxxxxx |
IN WITNESS WHEREOF, The Company and the Employee have executed this Agreement as of the date
first above written.
| By: | /s/ Xxxxx Xxxxxxxxx | ||
| Title: Chairman & CEO | |||
| Employee: | /s/ Xxxxx Xxxxxx | ||
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