GLOBAL SECURE CORP. EMPLOYMENT AGREEMENT
EXHIBIT 10.21
This Employment Agreement (“Agreement”) is made and entered into as of the 26th day of July,
2005, by and between Xxxxxxx Xxxxxxx Xxxxxx, having a principal residence address in the
Commonwealth of Virginia at 00000 Xxxxxxx Xxxxxx, Xxxxxxx Xxxxx, Xxxxxxxx 00000 (“Executive”) and
Global Secure Corp., a Delaware corporation (the “Company”).
RECITALS
The Company desires to employ Executive and Executive desires to be employed by the Company.
The parties wish to set forth the terms and conditions of Executive’s employment in a written
employment agreement.
NOW THEREFORE, in consideration for the mutual promises contained herein, the sufficiency of which
the parties acknowledge with intent to be legally bound, it is agreed as follows:
I. TERM
The Company agrees to employ Executive, and Executive agrees to remain in the employ of the
Company, subject to the terms and conditions of this Agreement for the period commencing on July
26, 2005 (the “Effective Date”) and terminating on the second anniversary of the Effective Date
(the “Original Term”), unless earlier terminated as provided in Section 5. The Original Term shall
be extended automatically for additional one (1) year periods (each a “Renewal Term”), unless
notice that this Agreement will not be extended is given by either party to the other six (6)
months prior to the expiration of the Original Term or any Renewal Term (the period of Executive’s
employment hereunder within the Original Term and any Renewal Terms is referred to as the
“Employment Period”). The provisions of Sections 6, 7, 8, 9 and 10 shall survive any termination
of this Agreement.
II. DUTIES
a. General Duties. Subject to the terms and conditions of this Agreement, Executive shall
serve as the Chief Financial Officer of the Company. Executive shall report to the Chief Executive
Officer of the Company (the “CEO”) who shall have the authority to direct, control and supervise
the activities of Executive. Executive shall perform such services consistent with his position as
may be assigned to him from time to time by the CEO.
b. Specific Duties. Executive agrees to: (i) devote his entire professional time, attention,
skill and energies to the business of the Company; (ii) faithfully and diligently perform such
duties and exercise such powers as may from time to time be assigned to him; (iii) comply with all
policies and procedures from time to time adopted by the Company; (iv) use his best efforts to
promote the interest, reputation, business and welfare of the Company; and (v) follow all
reasonable and lawful directions given to him by the Board of Directors of the Company.
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Notwithstanding the foregoing provisions, nothing herein shall preclude Executive, provided same
does not interfere with the Executive’s duties under this Agreement, from (i) participating with
the prior written consent of the Board of Directors as an officer or director of, or advisor to,
any other entity or organization which is engaged in religious, charitable or other community or
non-profit activities, (ii) investing in up to one percent (1%) of any class of securities of any
publicly held entity or organization; or (iii) delivering lectures or fulfilling speaking
engagements.
c. Corporate Opportunities. Executive agrees that he will not take personal advantage of any
business opportunities that may arise during the Employment Period that may be of benefit to the
Company. Executive shall promptly report all material facts regarding such opportunities to the
Board for its consideration.
III. REMUNERATION
a. Salary. For the services to be rendered by Executive during the Employment Period,
Executive shall be paid a base annual salary of not less than $225,000 (the “Base Salary”). Base
Salary payments shall be made on a semi-monthly basis (or in any other manner consistent with the
Company’s normal and customary payroll practices), subject to legally required deductions and
withholdings. Executive’s Base Salary shall be reviewed no less frequently than annually by the
Company and may be adjusted upward (but not downward) by the Company.
b. Expenses. Upon submission of appropriate documentation or receipts, Executive shall be
entitled to reimbursement for any reasonable and necessary business expenses he incurs, in
accordance with, and subject to, the Company’s policies and procedures regarding expense
reimbursement.
c. Bonus. Executive will be eligible to receive an annual bonus (“Bonus”) of between not less
than 50% nor more than 100% of the Base Salary, the specific amount of which will be at the
discretion of the Company’s Board of Directors (the “Board”). The Bonus shall be based, among
other things, upon Executive’s achievement of certain objectives and milestones to be determined in
writing by the CEO after consultation with the Executive within 30 days of the commencement of the
Initial Term. Earned Bonus for applicable years of the Employment Period shall be paid no later
than at the conclusion of the first calendar quarter following each fiscal year end for the
applicable year or portion thereof. In addition, but not in lieu thereof, the Executive shall be
entitled to participate in all bonus programs that the Company establishes and makes available to
its senior executives, if any, from time to time.
d. Stock Options. The Executive will be granted options to purchase up to 900,000 shares of
common stock, par value $.0001 per share, of the Company at an exercise price of $2.00 per share
(the “Stock Options”). The Stock Options will vest as follows: 180,000 immediately upon the
Effective Date of this Agreement, and the remaining 720,000 in equal tranches semi-annually over
three years commencing on January 26, 2006, provided that the Executive is employed by the Company
on the relevant vesting date. The Stock Options shall be granted under and subject to the terms
and conditions of the Company’s 2005 Stock Incentive
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Plan (the “Plan”) and, except as provided in this Agreement, the Company’s standard stock option
agreement for senior executives under which options are granted. Subject to the provisions set
forth in this Agreement, any Stock Options that are not vested at the time of termination of the
Executive’s employment with the Company shall immediately terminate and any vested options shall be
exercisable or forfeitable in accordance with the Plan and the stock option agreement. Executive
may receive such other awards of stock options or equity rights as may be granted by the Board of
Directors from time to time.
e. Upon a Change in Control (as defined in the Plan), all unvested Stock Options shall become
immediately vested and exercisable and, notwithstanding anything in the Plan or the option
agreement to the contrary, the Stock Options shall not be terminated without the consent of the
Executive pursuant to Section 7(d)(iv) of the Plan.
IV. FRINGE BENEFITS
a. Executive shall be entitled to take four (4) weeks of paid personal time off (including
vacation, personal time and sick days) during each calendar year of the Employment Period. One
week of such personal time off may be carried over and taken in the following year. Executive will
also be eligible to participate in the Company’s sponsored benefit plans (including medical, dental
and other insurance), subject to applicable vesting periods and eligibility requirements. The
Company will pay 100% of the cost of coverage under the Company’s health coverage plan for
Executive’s entire family. The Company shall pay the cost of parking for the Executive at the
Company’s office in Washington, DC.
b. Disability Insurance. The Company shall use its best efforts to purchase for Executive a
disability insurance policy which will provide Executive, during the first year of the Employment
Period, with seventy percent (70%) of Executive’s Base Salary, and, for each successive year
thereafter, seventy percent (70%) of the total compensation paid during the previous year to
Executive pursuant to Section 3(a) and (c) hereunder, in the event Executive suffers a disability
which renders him unable to perform as Chief Financial Officer of the Company for a period of more
than three (3) months.
c. Indemnity. As soon as practicable after the Effective Date, the Company shall execute and
deliver to the Executive the Company’s standard Indemnification Agreement for executive officers
and directors of the Company.
V. TERMINATION
a. Termination by the Company.
i. General. The Company may terminate Executive’s employment with the Company, with or
without Cause (as defined by Section 5(a)(iii) below), at any time during the Employment Period by
giving written notice to Executive. The termination shall become effective on the date specified
in the notice. If the termination is without Cause, the termination date shall not be less than
fourteen (14) days following the date of the notice of termination itself; provided, however, that
the termination of Executive may become effective immediately
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upon the payment by the Company of any and all compensation that may be due and payable to
Executive for the fourteen-day period following the effective date of Executive’s termination.
ii. Payment Due on Termination by the Company. If Executive is terminated for Cause, the
Company shall pay Executive any and all compensation and benefits set forth in Paragraph 3(a) and
(c) and Paragraph 4 accrued and/or earned but unpaid as of the date of termination and, upon
submission of approved expense reports, all properly incurred business expenses not yet reimbursed
by the Company, but Executive shall not be entitled to any other additional compensation or
benefits. If Executive is terminated without Cause, the Company shall pay him: (1) the
compensation and benefits set forth in Paragraphs 3(a) and (c) and Paragraph 4 accrued and/or
earned but unpaid as of the date of termination; plus (2) an amount equal to not less than twelve
(12) months Base Salary as of the date of the termination plus COBRA continuation coverage costs
for the 90 day period following the date of termination, less legally required withholdings and
deductions, payable, at the Company’s election, in a lump sum within fifteen (15) business days
after the date of termination or in installments for a twelve (12) month period on the Company’s
regular payroll schedule; plus (3) any and all remaining Stock Options that have not vested shall
be accelerated and shall vest immediately as of the date of termination. The payment of the
foregoing shall be contingent upon Executive’s execution and delivery of a general release of
claims in favor of the Company and its affiliates, in the standard form used by the Company for its
senior executives. If the Company makes the Non-Competition Election pursuant to Section 6(e), the
payment of the foregoing severance shall satisfy the Company’s obligation to make the
Non-Competition Payment for the severance period.
iii. Cause Defined. For purposes of this Agreement, “Cause” shall mean that the Board has
determined in its sole discretion that Executive has: (1) committed a material breach of any
covenant or condition under this Agreement; provided that the Company specifically terminates
Executive’s employment for Cause hereunder within 120 days from the date the Company has actual
notice of such; (2) engaged in any act constituting dishonesty, fraud, immoral or disreputable
conduct which is harmful to the Company or its reputation; provided that the Company specifically
terminates Executive’s employment for Cause hereunder within 120 days from the date the Company has
actual notice of such act; (3) been convicted of, or having entered a plea bargain or settlement
admitting guilt for, any felony or any misdemeanor involving moral turpitude, provided that the
Company specifically terminates Executive’s employment for Cause hereunder within 120 days from the
date the Company has actual notice of such felony or misdemeanor; (4) willfully engaged in any act
of misconduct which is materially and demonstrably injurious to the Company; provided that the
Company specifically terminates Executive’s employment for Cause hereunder within 120 days from the
date the Company has actual notice of such conduct; (5) willfully refused to attempt in good faith
to implement a clear and reasonable directive (not in contravention of any federal, state or local
law or regulation) of the Board provided that the Company specifically terminates Executive’s
employment for Cause hereunder within 120 days from the date the Company has actual notice of the
conduct of the Executive; (6) engaged in gross negligence or willful misconduct in the performance
of Executive’s duties; provided that the Company specifically terminates Executive’s employment
for Cause hereunder within 120 days from the date the Company has actual notice of such
mismanagement; or (7) been the subject of any order, judicial or
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administrative, obtained or issued by the Securities and Exchange Commission, for any securities
violation involving fraud, including, for example, any such order consented to by Executive in
which findings of facts or any legal conclusions establishing liability are neither admitted nor
denied, provided that the Company specifically terminates Executive’s employment for Cause
hereunder within 120 days from the date the Company has actual notice of such order.
iv. In any case, if the Company desires to terminate Executive’s employment for Cause in
accordance with Sections 5(a)(iii)(a) or (f), it shall first give written notice of the facts and
circumstances providing the basis for Cause to Executive, and allow Executive 30 days from the date
of such notice to remedy, cure or rectify, if possible, the situation giving rise to the Company’s
allegations of Cause (the “Cure Period”); provided, however, that Executive shall have only one
such opportunity to cure, regardless of the grounds on which Cause is asserted, during the
Employment Period. During the Cure Period, the Executive may not be entitled to payment of any
compensation, in the Company’s sole discretion; provided, however, that if Executive’s compensation
is withheld and Executive successfully remedies, cures, or rectifies the situation giving rise to
the Company’s notice of Cause during the Cure Period, resulting in the Company’s withdrawal of its
written notice of Cause, Executive shall be compensated for the Cure Period.
b. Termination by Death or Disability of Executive. In the event of Executive’s death during
the Employment Period, all obligations of the parties hereunder shall terminate immediately, and
the Company shall pay Executive’s legal representatives any and all of the compensation and
benefits accrued and/or earned but unpaid as of the date of termination set forth in Paragraph 3(a)
and (c) and Paragraph 4 and, upon submission of approved expense reports, all properly incurred
business expenses not yet reimbursed by the Company. Subject to applicable state and federal law,
the Company shall at all times have the right, upon written notice to Executive, to terminate this
Agreement based on Executive’s “Disability.” Upon any termination for Disability, the Company
shall pay Executive any and all of the compensation and benefits accrued and/or earned but unpaid
as of the date of termination set forth in Paragraph 3(a) and (c) and Paragraph 4. Termination of
Executive’s employment based on “Disability” shall mean termination because Executive is unable to
perform the essential functions of his position due to a disability for a continuous period of
ninety (90) days or for a total of one hundred twenty (124) days in any twelve-month period. Upon
termination by reason of either Death or Disability, any and all remaining Stock Options that have
not vested shall accelerate and vest immediately as of the date of termination.
c. Termination by Executive.
i. General. Executive may terminate his employment with the Company, with or without Good
Reason, at any time during the Employment Period by giving four (4) weeks written notice to the
Company. Any such termination shall become effective on the date specified in such notice;
provided, that, the termination of Executive’s employment may become effective immediately upon the
payment by the Company of any Base Salary and accrued but unpaid Bonus, payable to Executive during
the four (4) -week notice period, and such payment shall be offset against any payment due to
Executive pursuant to Section 5(c)(ii) in the event of a termination for Good Reason.
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ii. Payment Due on Termination by Executive. If Executive terminates this Agreement, the
Company shall pay him any and all compensation and benefits accrued and/or earned but unpaid as of
the date of termination set forth in Paragraph 3(a) and (c) and Paragraph 4, and, upon submission
of approved expense reports, all properly incurred business expenses not yet reimbursed by the
Company. In addition, if such termination is for Good Reason, the Company shall pay Executive an
amount equal to the total Remuneration set forth in Paragraph 3 that is otherwise due for the
balance of the Employment Period, but in no event for greater than twelve (12) months as of the
date of the termination plus COBRA continuation coverage costs for the 90 day period following the
date of termination, less legally required withholdings and deductions, payable, at the Company’s
election, in a lump sum within fifteen (15) business days after the date of termination or in
installments for a twelve (12) month period on the Company’s regular payroll schedule. The payment
of the foregoing shall be contingent upon Executive’s execution and delivery of a general release
of claims in favor of the Company and its affiliates, in the standard form used by the Company for
its senior executives. If the Company makes the Non-Competition Election pursuant to Section 6(e),
the payment of the foregoing severance shall satisfy the Company’s obligation to make the
Non-Competition Payment for the severance period.
iii. Good Reason Defined. For purposes of this Agreement, “Good Reason” shall mean: (A)
except as otherwise agreed to by Executive, any reduction in Executive’s Base Salary; provided that
Executive specifically terminates his employment for Good Reason hereunder within 120 days from the
date that he has actual notice of such reduction; (B) any material breach by the Company of this
Agreement, provided that Executive specifically terminates his employment for Good Reason hereunder
within 120 days from the date that he has actual notice of such material breach; (C) Executive’s
duties or responsibilities for the Company or its successors are materially reduced or there is any
material change in Executive’s title or any material change in the types of positions reporting to
Executive or the type of position to whom Executive reports (if Executive reports directly to the
Board, the Board shall be deemed a position for purposes of this provision), provided that
Executive specifically terminates his employment for Good Reason hereunder within 120 days
following his receipt of actual notice of such reduction or change; or (D) any transfer of
Executive’s primary place of employment, without Executive’s consent, of more than 50 miles from
the Company’s offices located in Washington, D.C., provided that Executive specifically terminates
his employment for Good Reason hereunder within 120 days following such transfer.
iv. In any case, if Executive desires to terminate his employment for Good Reason in
accordance herewith, he shall first give written notice of the facts and circumstances providing
the basis for Good Reason to the Board, and allow the Company 30 days from the date of such notice
to remedy, cure or rectify the situation giving rise to Good Reason.
d. Offset Right Upon Termination. Upon termination of Executive’s employment for any reason,
the Company shall be entitled, upon delivery of proper documentation to Executive, to deduct from
any amounts payable to Executive any sums due to the Company from Executive, and Executive hereby
consents to such deductions, it being understood and agreed that nothing in this clause shall be
construed to require Executive to return all or any portion of
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any applicable severance payments, if any, to the Company if prior to the end of one year following
Executive’s termination of employment, Executive has obtained employment with any other person,
except to the extent such employment results in a breach of the Non-Competition provisions of this
Agreement.
e. Return of Property. Promptly upon termination of Executive’s employment with the Company,
Executive or his personal representative shall return to the Company (i) all Protected Information,
(ii) all other records, documents, materials, data or property delivered to or compiled by
Executive that pertain to the Company’s business, whether in electronic, paper or other form, and
(iii) all keys, credit cards, vehicles and other property of the Company. Executive shall not
retain, or cause to be retained, any copies of the foregoing. Executive agrees that all of the
foregoing shall be and remain the property of the Company and be subject at all times to the
Company’s discretion and control.
VI. RESTRICTIVE COVENANTS
a. Non-Competition. Executive covenants and agrees that, during the Employment Period and for
the Non-Competition Term (as defined in Section 6(e)) thereafter (the “Restricted Period”), except
if Executive is acting as an employee of the Company solely for the benefit of the Company in
connection with the Company’s business and in accordance with the Company’s business practices and
employee policies, Executive shall not engage, directly, indirectly or in concert with any other
person or entity, in any business that competes directly or indirectly with the business of the
Company as of the date of such termination of employment. The geographic scope of the foregoing
non-competition restriction shall be the United States and Canada (the “Territory”), including any
competitive business outside of the Territory to the extent that such business performs or attempts
to perform competitive activities within the Territory. Notwithstanding any other provision of
this Agreement to the contrary, the restrictions set forth in this Section 6(a) shall terminate if
the Company terminates Executive’s employment without Cause or Executive terminates his employment
for Good Reason.
b. Non-Solicitation of Employees and Customers. Executive further covenants and agrees that,
during the Restricted Period, he will not, directly or indirectly, (1) solicit, recruit, hire,
engage or employ or identify or target for purposes of attempting to solicit, recruit, hire, engage
or employ any individual who shall have been an employee of the Company at any time during the one
(1)-year period prior to the date Executive’s employment with the Company ceases, whether for or on
behalf of Executive or for any entity in which Executive shall have a direct or indirect interest
(or any subsidiary or affiliate of any such entity), whether as a proprietor, partner, co-venturer,
financier, investor or stockholder, director, officer, employer, employee, servant, agent,
representative or otherwise, or (ii) solicit or induce or attempt to solicit or induce any
customer, developer, client, member, supplier, licensee, licensor, franchisee or other business
relation of the Company to cease doing business with the Company, or in any way interfere with the
relationship between any such customer, developer, client, member, supplier, licensee, licensor,
franchisee or other business relation and the Company (including, without limitation, making any
negative statements or communications about the Company).
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c. Reasonableness. Executive acknowledges that the restrictions contained in Section 6(a) and
(b) are reasonable and permit Executive to continue his chosen career in the same geographic area
without any interruption while protecting the Company’s legitimate business interests in its
client, prospective client, and employee relationships. Executive agrees that the these
limitations are reasonable given the highly competitive nature of the Company’s business and are
required for the Company’s protection based upon numerous factors including the knowledge,
Protected Information (as defined in Section 7 below) and relationships to which Executive will
have access during his employment with the Company. Executive further acknowledges that the
business of the Company is very competitive and that competition by him in that business during the
Restricted Period would severely injure the Company and cause irreparable harm.
d. Investment Exception. Nothing in this Agreement shall be deemed to prohibit Executive from
owning equity or debt investments in any corporation, partnership or other entity which is
competitive with the Company, provided that such investments (i) are passive investments and
constitute one percent (1%) or less of the outstanding equity securities of such an entity whose
equity securities are traded on a national securities exchange or other public market, or (ii) are
approved in advance by the Board.
e. Definitions:
i. “Non-Competition Term” means the following period of time after the termination of the
Executive’s employment with the Company: (A) if the Executive terminates his employment without
Good Reason, one (1) year after the Date of Termination; (B) if Executive’s employment is
terminated by the Company for Cause, one (1) year after the Date of Termination; (C) if Executive
terminates his employment for Good Reason and the Company makes the Non-Competition Election, one
(1) year after the Date of Termination; (D) if the Company terminates Executive’s employment
without Cause and the Company makes the Non-Competition Election, one (1) year after the Date of
Termination; if the Executive, and (E) if Executive’s employment is terminated as a result of
Disability, one (1) year after the Date of Termination.
ii. “Non-Competition Election” means a written election delivered by the Company to Executive
not later than the later of (A) seven days after the Date of Termination or (B) seven days after
the end of the Severance Period, pursuant to which the Company elects to make the Non-Competition
Payment and therefore to have the provisions of Section 6(a) apply for the post-employment portion
of the applicable Non-Competition Term.
iii. “Non-Competition Payment” means an amount equal to the then Base Salary, which shall be
paid in equal installments at the same time Base Salary would have been payable had the Executive’s
employment not been terminated.
iv. “Date of Termination” means the date that the Executive’s employment with the Company
terminates.
VII. TREATMENT OF INFORMATION
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a. General. Executive acknowledges that, in and as a result of Executive’s employment by the
Company, Executive shall or may be making use of, acquiring and/or adding to confidential
information of a special and unique nature and value relating to such matters as the Company’s
trade secrets, systems, programs, procedures, manuals, confidential reports and communications, the
agreements with or terns of any relationship or agreement with any distributor, customer or
strategic partner, and lists and/or electronic mail addresses of customers and prospective
customers. Executive further acknowledges that any information and materials received by the
Company from third parties in confidence (or subject to nondisclosure or similar covenants) shall
be deemed to be and shall be Protected Information within the meaning of this Section 7. Executive
covenants and agrees that Executive shall not, except with the prior written consent of the
Company, or except if Executive is acting as an employee of the Company solely for the benefit of
the Company in connection with the Company’s business and in accordance with the Company’s business
practices and employee policies, at any time during or following the Employment Period, directly or
indirectly, disclose, divulge, reveal, report, publish, transfer or use, for any purpose
whatsoever, any Protected Information which has been obtained by or disclosed to Executive as a
result of Executive’s employment with the Company, including any of the information referred to in
Section 7(b). Disclosure of any such information of the Company shall not be prohibited if such
disclosure is directly related to a valid and existing order of a court or other governmental body
or agency within the United States; provided, however, that (i) Executive shall first have given
prompt notice to the Company of any possible or prospective order (or proceeding pursuant to which
any such order may result) and (ii) the Company shall have been afforded a reasonable opportunity
to prevent or limit any such disclosure.
b. Definition of Protected Information. For purposes of this Agreement, the term “Protected
Information” shall mean all of the information referred to in Section 7(a) hereof and all of the
following materials and information (whether or not reduced to writing and whether or not
patentable or protectable by copyright) which Executive receives, receives access to, conceives or
develops or has received, received access to, conceived or developed, in whole or in part, directly
or indirectly, in connection with Executive’s employment with the Company or in the course of
Executive’s employment with the Company or through the use of any of the Company’s facilities or
resources:
i. application, operating system, data base, communication and other computer software,
whether now or hereafter existing, developed for use on any operating system, all modifications,
enhancements and versions and all options available with respect thereto, and all future products
developed or derived therefrom;
ii. source and object codes, flowcharts, algorithms, coding sheets, routines, sub-routines,
compilers, assemblers, design concepts and related documentation and manuals;
iii. production processes, marketing techniques and arrangements, mailing lists, purchasing
information, pricing policies, quoting procedures, financial information, customer and prospect
names and requirements, employee, customer, supplier and distributor
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data and other materials or information relating to the Company’s business and activities and the
manner in which the Company does business;
iv. discoveries, concepts and ideas including, without limitation, the nature and results of
research and development activities, processes, formulas, inventions, computer-related equipment or
technology, techniques, “know-how,” designs, drawings and specifications;
v. any other materials or information related to the business or activities of the Company
which are not generally known to others engaged in similar businesses or activities; and
vi. all ideas which are derived from or relate to Executive’s access to or knowledge of any of
the above enumerated materials and information. Failure to xxxx any of the Protected Information as confidential, proprietary or Protected
Information shall not affect its status as part of the Protected Information under the terms of
this Agreement. For purposes of this Agreement, the term. Protected Information shall not include
information which is or becomes publicly available without breach of (i) this Agreement, (ii) any
other agreement or instrument to which the Company is a party or a beneficiary or (iii) any duty
owed to the Company by Executive or any third party; provided, however, that Executive hereby
acknowledges and agrees that, except as otherwise provided in Section 7(a) hereof, if Executive
shall seek to disclose, divulge, reveal, report, publish, transfer or use, for any purpose
whatsoever, any Protected Information, Executive shall bear the burden of proving that any such
information shall have become publicly available without any such breach.
x. Xxxxxx of Proof. In any dispute between the Company and Executive regarding Protected
Information, Executive shall bear the burden of proving that information is not Protected
Information.
d. Additional Agreement. Executive shall simultaneously with the execution and delivery of
this Agreement execute and deliver to the Company the Company’s standard form Employee
Non-Disclosure and Proprietary Information Agreement, the terms of which shall be in addition to
and not in any way be in derogation, limitation or restriction of the provisions of this Section 7.
VIII. DISCOVERIES AND WORKS
All discoveries and works made or conceived by the Executive during his employment by the Company,
jointly or with others, that relate to the Company’s activities shall be owned by the Company. The
term “discoveries and works” include, by way of example, inventions, computer programs (including
documentation of such programs), technical improvements, processes, drawings and work of
authorship. The Executive shall: (a) promptly notify, make full disclosure to, and execute and
deliver any documents requested by the Company to evidence or better assure title to such
discoveries and works in the Company; (b) assist the Company in obtaining or maintaining for itself
at its own expense United States and foreign patents, copyrights, trade secret protection or other
protection of any and all such discoveries and works; and (c) promptly execute, whether during the
Employment Period or thereafter, all applications or other
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endorsements necessary or appropriate to maintain patents and other rights for the Company and to
protect its title thereto. Executive shall simultaneously with the execution and delivery of this
Agreement execute and deliver to the Company the Company’s standard form Employee Invention
Agreement, the terms of which shall be in addition to and not in any way be in derogation,
limitation or restriction of the provisions of this Section 7.
IX. REMEDIES
Executive acknowledges and agrees that any breach of his obligations under Sections 6, 7 or 8 of
this Agreement will cause the Company irreparable injury for which the Company has no adequate
remedy at law. Accordingly, in the event Executive breaches or threatens to breach any of his
obligations set forth in such sections, the Company shall have the right to obtain an injunction or
decree of specific performance from any court of competent jurisdiction to restrain him from
violating those obligations or to compel him to perform those obligations, in addition to any other
rights the Company may have against Executive. Executive agrees that the Company may obtain such
injunctive or equitable relief without posting a bond.
X. REPRESENTATIONS AND WARRANTIES OF EXECUTIVE
a. Authority to Enter into Agreement. Executive hereby represents and warrants that he has
full right and authority to enter into this Agreement and to perform his obligations hereunder.
b. Prior Obligations. Company has reviewed Executive’s prior employment agreement and
acknowledges the presence of terms and conditions set forth therein as to non-competition by
Executive. Neither the Company nor the Executive are of the belief that the execution and delivery
of this Agreement by Executive and the performance of Executive’s obligations hereunder will
conflict with or breach the non-competition provisions of such agreement.
c. No Conflict of Interest. Executive warrants that he is not, to the best of his knowledge
and belief, involved in any situation that might create, or appear to create, a conflict of
interest with his loyalty to or duties for the Company.
d. No Third Party Materials or Documents. Executive further warrants that he has not brought
and will not bring to the Company or use in the performance of his responsibilities at the Company
any materials or documents of a third party, including without limitation a former employer, that
are not generally available to the public.
e. Other Obligations. Executive also understands that, as part of his employment with the
Company, Executive is not to breach any obligation of confidentiality that Executive has to third
parties, including without limitation former employers, and Executive agrees to honor all such
obligations during the Employment Period. Executive has disclosed to the Company any prior
confidentiality, non-competition or assignment of invention agreements that he has entered into
with previous employers or others, which by their terms impose obligations on Executive as of the
date hereof.
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XI. MISCELLANEOUS
a. Notices. Any notice required or permitted to be given under this Agreement shall be in
writing, and shall be deemed sufficient if delivered personally, mailed by certified or registered
mail, return receipt requested, or sent via facsimile or electronic mail if receipt is
acknowledged. Notice shall be deemed to have been given when personally delivered, two (2)
business days after having been mailed by certified or registered mail, return receipt requested,
or one (1) business day after acknowledgment of receipt of notice via facsimile or electronic mail
transmission, as follows:
If to the Company:
Global Secure Corp.
0000 Xxxxxxxx Xxxxxx, X
Xxxxx 000
Xxxxxxxxxx, X.X. 00000
Attention: General Counsel
Facsimile: (000) 000-0000
e-mail: xxxxxxx@xxxxxxxxxxxxxxxx.xxx
0000 Xxxxxxxx Xxxxxx, X
Xxxxx 000
Xxxxxxxxxx, X.X. 00000
Attention: General Counsel
Facsimile: (000) 000-0000
e-mail: xxxxxxx@xxxxxxxxxxxxxxxx.xxx
If to Executive:
to the address first written above.
e-mail: xxxxxxxx@xxx.xxx
e-mail: xxxxxxxx@xxx.xxx
or to such other address as the person to whom notice is to be given may have specified in a notice
duly given to the sender as provided herein.
b. Waiver. The waiver by any party to this Agreement of a breach of any of the provisions of
this Agreement shall not constitute a waiver of any subsequent breach.
c. Severability. In case any provision of this Agreement shall be held by a court or
arbitrator with jurisdiction over the parties to this Agreement to be invalid, illegal or otherwise
unenforceable, such provision shall be restated to reflect as nearly as possible the original
intentions of the parties in accordance with applicable law, and the validity, legality and
enforceability of the remaining provisions shall in no way be affected or impaired thereby.
d. Governing Law. This Agreement shall be governed by the laws of the District of Columbia,
without regard to its conflict of laws provisions. Executive hereby irrevocably consents to, and
waives any objection to the exercise of, personal jurisdiction by the state and federal courts
located in the District of Columbia with respect to any action or proceeding arising out of this
Agreement.
e. Assignment. This Agreement is not assignable by either party without the written consent
of the other; provided, however, that the provisions of this Agreement shall be assignable to and
shall inure to the benefit of and be binding upon any successor of the
Xxxxxx Employment Agreement
12
Company, whether by merger, consolidation, or transfer of all or substantially all of its assets or
otherwise.
f. Headings. The section headings contained in this Agreement are for reference purposes only
and shall not in any way affect the meaning or interpretation of this Agreement.
g. Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute an original agreement, but both of which shall constitute only one agreement.
h. Complete Agreement; Amendment. This Agreement supersedes any and all prior discussions and
understandings, whether written or oral, and represents the complete agreement between the parties.
In the event of a conflict or inconsistency between the terms of this Agreement and the Company’s
policies regarding employees, the terms of this Agreement shall supersede the conflicting or
inconsistent Company policies; otherwise Executive’s employment shall be subject to the policies of
the Company as revised form time to time. No modification, waiver, termination, rescission,
discharge or cancellation of this Agreement shall affect the right of any party to enforce any
other provision or to exercise any right or remedy in the event of any other default. This
Agreement may not be amended, modified or supplemented except by a written document signed by both
parties.
[signatures on following page]
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13
IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first
above written.
| Global Secure Corp. | ||||
By: |
/s/ Xxxxx Xxxxxx |
|||
Name: |
Xxxxx Xxxxxx |
|||
Title: |
CEO & Pres |
|||
Executive
By:
|
/s/ Xxxxxxx Xxxxxxx Xxxxxx | |||||
Name:
|
Xxxxxxx Xxxxxxx Xxxxxx |
Xxxxxx Employment Agreement
14
