Exhibit 10.16
EXECUTIVE EMPLOYMENT AGREEMENT
This Executive Employment Agreement (hereafter referred to as this
"Agreement") is made by and between Point Therapeutics, Inc, a Delaware
corporation, (the "Company") and Xxxxx Xxxxx, Ph.D. (the "Executive") as of the
1st day of January, 2003 (the "Effective Date").
WHEREAS, subject to the terms and conditions hereinafter set forth, the
Company wishes to employ the Executive as Senior Vice President, Research, and
the Executive wishes to serve the Company in that capacity;
NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises, terms, provisions and conditions set forth in this Agreement,
the parties hereby agree:
1. Employment. Subject to the terms and conditions set forth in
this Agreement, the Company hereby offers to continue to employ the Executive
and the Executive hereby agrees to continue in the service of the Company.
2. Term. Subject to earlier termination as hereafter provided, the
Executive's employment hereunder shall be for a term of three (3) years,
commencing on the Effective Date, and shall automatically be extended thereafter
for successive terms of one year each. The term of this Agreement, as from time
to time extended, is hereafter referred to as "the term of this Agreement" or
"the term hereof."
3. Capacity and Performance.
(a) During the term hereof, the Executive shall serve the
Company as its Senior Vice President, Research. In addition, and without further
compensation, the Executive shall serve as a director and/or officer of one or
more of the Company's Affiliates if so elected or appointed from time to time.
(b) During the term hereof, the Executive shall be employed
by the Company on a full-time basis.
(c) During the term hereof, the Executive shall perform the
duties and responsibilities of his positions and such other duties and
responsibilities on behalf of the Company and its Affiliates, reasonably
consistent with his positions, as may be designated from time to time by the
President and Chief Executive Officer (the "President and CEO") or his designee
or the Board of Directors (the "Board"). Without limiting the generality of the
foregoing, the Executive, subject to the direction and control of the President
and CEO or his designee and the Board, shall be responsible for (i) managing all
of the Company's preclinical research efforts, including, without limitation,
the Company's laboratory scientist employees and
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external vendors who support the Company's preclinical research efforts, and
(ii) managing, with the General Counsel of the Company, the intellectual
property portfolio of the Company.
(c) During the term hereof, the Executive shall devote his
full business time and his best efforts, business judgment, skill and knowledge
exclusively to the advancement of the business and interests of the Company and
its Affiliates and to the discharge of his duties and responsibilities for them.
It is agreed, however, that the provisions of this Section 3(c) shall not be
violated (i) by the Executive's holding of directorships or other positions in
charitable, educational or other not-for-profit organizations which do not
involve continuous or substantial time commitments or (ii) by the Executive's
holding of directorships or other positions with for-profit organizations with
the approval of the Board or (iii) by passive personal investment activities,
provided that such positions and activities are not in conflict, and do not
otherwise interfere, with the Executive's duties and responsibilities to the
Company and its Affiliates.
4. Compensation and Benefits. As compensation for all services
performed by the Executive under and during the term hereof:
(a) Base Salary. During the term hereof, the Company shall
pay the Executive a base salary at the rate of One Hundred and Ninety Thousand
Dollars ($190,000) per year, payable in accordance with the payroll practices of
the Company for its executives. The Board, in consultation with the President
and CEO, shall review the Executive's base salary annually and the base salary
shall be subject to increase from time to time by the Board in its sole
discretion. The Executive's base salary, as from time to time increased, is
hereafter referred to as the "Base Salary."
(b) Incentive and Bonus Compensation. If an incentive or
bonus compensation program is made available to executives of the Company
generally and the Executive is not then covered by any incentive or bonus
compensation program, the Executive shall be entitled during the term hereof to
participate in such program in accordance with the terms thereof, as such terms
may be modified or amended by the Company from time to time; provided that the
maximum bonus opportunity for the Executive under any such program shall be not
less than thirty percent (30%) of the Base Salary; and provided further,
however, that nothing contained herein shall obligate the Company to adopt or
continue such an incentive or bonus compensation program. In the absence of such
a program, however, the Executive shall be considered annually by the Board for
a bonus of up to thirty percent (30%) of the Base Salary, based on the
assessment of the Board, in consultation with the President and CEO and in its
discretion, of the Executive's performance and that of the Company against
appropriate and reasonably obtainable goals established annually by the
Compensation Committee of the Board in consultation with the Executive and the
President and CEO; which bonus, if any, shall be payable not later than the end
of the first quarter of the fiscal year following that for which the bonus was
earned. Any bonus or incentive compensation paid to the Executive shall be in
addition to the Base Salary.
(c) Vacations. During the term hereof, the Executive shall
be entitled to earn vacation at the rate of four (4) weeks per annum, in all
cases to be taken at such times and
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intervals as shall be determined by the Executive, subject to the reasonable
business needs of the Company. Vacation shall otherwise to subject to the
policies of the Company, as in effect from time to time.
(d) Other Benefits. During the term hereof, and subject to
any contribution therefor required of Company employees generally, the Executive
shall be entitled to participate in any and all employee benefit plans from time
to time in effect for employees of the Company generally, except to the extent
such plans are in a category of benefit otherwise provided to the Executive
(e.g., severance pay). Such participation shall be subject to the terms of the
applicable plan documents and generally applicable Company policies. As used
herein, "employee benefit plans" mean health and welfare and retirement plans
which are subject to the federal Employee Retirement Income Security Act of 1974
or any successor statute, as amended.
(e) Business Expenses. The Company shall pay or reimburse
the Executive for all reasonable business expenses incurred or paid by the
Executive in the performance of his duties and responsibilities hereunder,
subject to such reasonable substantiation and documentation as may be specified
by the Company from time to time.
5. Termination of Employment and Severance Benefits.
Notwithstanding the provisions of Section 2 hereof, the term of this Agreement,
and the Executive's employment hereunder, shall terminate under the following
circumstances:
(a) Death. In the event of the Executive's death during the
term hereof, the Executive's employment hereunder shall immediately and
automatically terminate. In that event, the Company shall pay to the Executive's
designated beneficiary or, if no beneficiary has been designated by the
Executive, to his estate, (i) the Base Salary earned but not paid through the
date of termination, (ii) pay for any vacation time earned but not used through
the date of termination, (iii) any bonus compensation awarded but unpaid on the
date of termination and (iv) any business expenses incurred by the Executive but
un-reimbursed on the date of termination, provided that such expenses and
required substantiation and documentation are submitted within thirty (30) days
of termination and that such expenses are reimbursable under Company policy (all
of the foregoing, "Final Compensation"). The Company shall have no further
obligation to the Executive, his heirs, executors or administrators hereunder.
(b) Disability.
(i) The Company may terminate the Executive's
employment hereunder, upon notice to the Executive, in the event that
the Executive becomes disabled during his employment hereunder through
any illness, injury, accident or condition of either a physical or
psychological nature and, as a result, is unable to perform
substantially all of his duties and responsibilities hereunder for one
hundred and twenty (120) business days during any period of three
hundred and sixty-five (365) consecutive calendar days. In the event of
such termination, the Company shall have no further obligation to the
Executive, other than for payment of Final Compensation.
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(ii) The Board may designate another employee to act
in the Executive's place during any period of the Executive's
disability. Notwithstanding any such designation, the Executive shall
continue to receive the Base Salary in accordance with Section 4(a)
hereof, and benefits in accordance with Section 4(d) to the extent
permitted by the then-current terms of the applicable benefit plans,
until the Executive becomes eligible for disability income benefits
under the Company's disability income plan or until the termination of
his employment, whichever shall first occur.
(iii) While receiving disability income payments under
the Company's disability income plan, the Executive shall not be
entitled to receive any Base Salary under Section 4(a) hereof, but shall
continue to participate in Company benefit plans in accordance with
Section 4(d) and the terms of such plans until the termination of his
employment.
(iv) If any question shall arise as to whether during
any period the Executive is disabled through any illness, injury,
accident or condition of either a physical or psychological nature so as
to be unable to perform substantially all of his duties and
responsibilities hereunder, the Executive may, and at the request of the
Company shall, submit to a medical examination by a physician selected
by mutual agreement of the Company and the Executive (or his duly
appointed guardian, if any) to determine whether the Executive is so
disabled and such determination shall for the purposes of this Agreement
be conclusive of the issue. If such question shall arise and the
Executive shall fail to reasonably cooperate in the selection of a
physician or to submit to such medical examination, the Company's
determination of the issue shall be binding on the Executive.
(c) By the Company for Cause. The Company may terminate the
Executive's employment hereunder for Cause at any time upon notice to the
Executive; provided that, prior to such termination, the Board shall provide the
Executive an initial notice setting forth in reasonable detail the nature of the
Cause alleged and a reasonable opportunity for the Executive (and, at the
Executive's option, his counsel) to be heard by the Board prior to its final
determination as to whether or not Cause exists. The Board may elect to place
the Executive on unpaid administrative leave at the time of such initial notice
and pending the final determination by the Board; provided, however, that, if
Cause is not found to exist, the Executive shall be paid the Base Salary for the
period of administrative leave. Only the following, as determined by the Board
in its reasonable judgment, shall constitute Cause for termination:
(i) The Executive's willful failure to perform, or
gross negligence in the performance of, his duties and responsibilities
to the Company or any of its Affiliates, which failure or neglect
remains uncured, continues or recurs after ten (10) business days'
notice from the Board setting forth in reasonable detail the nature of
such failure or neglect;
(ii) Commission by the Executive of a felony or other
crime involving moral turpitude;
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(iii) Fraud, embezzlement or other material dishonesty
by the Executive with respect to the Company or any of its Affiliates;
or
(iv) Material breach by the Executive of any of his
obligations under Section 7, 8 or 9 hereof.
Upon termination of the Executive's employment for Cause in accordance herewith,
the Company shall have no further obligation to the Executive, other than for
Final Compensation.
(d) By the Company Other than for Cause. The Company may
terminate the Executive's employment hereunder other than for Cause at any time
upon notice to the Executive. In the event of such termination, in addition to
Final Compensation, the Company shall continue to pay the Executive the Base
Salary for the period of twelve (12) months following the date of termination
and, in lieu of continuation of the Executive's participation, or that of any of
his eligible dependents, in any of the Company's employee benefit plans
following termination of his employment, shall provide the Executive a single
lump sum payment in the amount of Twenty-Five Thousand Dollars ($25,000). Base
Salary to which the Executive is entitled hereunder shall be payable in
accordance with the normal payroll practices of the Company and shall begin at
the Company's next regular payroll period following the date of termination. The
lump sum payment to which the Executive is entitled hereunder shall be paid at
the Company's next regular payday following the date of termination.
(e) By the Executive for Good Reason. The Executive may
terminate his employment hereunder for Good Reason, upon notice to the Company
setting forth in reasonable detail the nature of such Good Reason. The following
shall constitute Good Reason for termination by the Executive:
(i) Failure of the Company to continue the Executive
in the position of Vice President, Research;
(ii) Material diminution or other material adverse
change in the nature or scope of the Executive's responsibilities,
duties or authority which remains uncured, continues or recurs after ten
(10) business days' notice from the Executive setting forth in
reasonable detail the nature of such diminution or change; or
(iii) Material failure of the Company to provide the
Executive the Base Salary and other compensation and benefits in
accordance with the terms of Section 4 hereof, other than any
inadvertent failure which is cured within ten (10) business days
following notice from the Executive setting forth in reasonable detail
the nature of such failure.
In the event of termination for Good Reason in accordance with this Section
5(e), in addition to Final Compensation, the Company shall continue to pay the
Executive the Base Salary for the period of twelve (12) months following the
date of termination and, in lieu of continuation of the Executive's
participation, or that of any of his eligible dependents, in any of the
Company's
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employee benefit plans following termination of his employment, shall provide
the Executive a single lump sum payment in the amount of Twenty-Five Thousand
Dollars ($25,000). Base Salary to which the Executive is entitled hereunder
shall be payable in accordance with the normal payroll practices of the Company
and will begin at the Company's next regular payroll period following the date
of termination. The lump sum payment to which the Executive is entitled
hereunder shall be paid at the Company's next regular payday following the date
of termination.
(f) By the Executive Other than for Good Reason. The
Executive may terminate his employment hereunder at any time upon sixty (60)
days' notice to the Company. In the event of termination by the Executive
pursuant to this Section 5(f), the Board may elect to waive the period of
notice, or any portion thereof, and, if the Board so elects, the Company shall
pay the Executive the Base Salary for the notice period (or for any remaining
portion of the period).
(g) Upon a Change of Control.
(i) If a Change of Control occurs and, within two
years following such Change of Control, the Company terminates the
Executive's employment other than for Cause, or the Executive terminates
his employment for Good Reason, then, in lieu of any payments to the
Executive under Section 5(c) or 5(d) hereof, the Company (A) shall pay
the Executive, within ten (10) business days following the date his
employment terminates, a lump sum payment equal to one and one-half
times the sum of the Base Salary at the rate in effect on the date of
termination and the amount of any incentive and bonus compensation paid
to him pursuant to Section 4(b) hereof during the preceding twelve (12)
months and (B) in lieu of continuation of the Executive's participation,
or that of any of his eligible dependents, in any of the Company's
employee benefit plans following termination of his employment, shall
provide the Executive a single lump sum payment in the amount of
Thirty-Seven Thousand, Five Hundred Dollars ($37,500).
(ii) In the event that payments or other benefits to
which the Executive is entitled under this Agreement constitute an
"excess parachute payment" as that term is defined in Section 280G of
the Internal Revenue Code of 1986, or any successor provision, to the
extent any agreement by, or policy of, the Company is put in place to
address possible excess parachute payments for any other senior
executive (a "Parachute Arrangement"), Executive shall have a similar
arrangement, the terms and conditions of which shall be no less
favorable to the Executive than the terms and conditions of such
Parachute Arrangement.
(iii) "Change of Control" means the occurrence after
the Effective Date of one of the following: (A) any "Person," as such
term is used in Section 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), other than the Company or one
of its Affiliates or any trustee or other fiduciary holding securities
under an employee benefit plan or other employee plan of the Company or
one of its Affiliates, becomes a beneficial owner (within the meaning of
Rule 13d-3, as amended, as
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promulgated under the Exchange Act), directly or indirectly, in one or a
series of transactions, of securities representing more than fifty
percent (50%) of the combined voting power of the Company's then
outstanding securities; (B) during any period of two consecutive years
(not including any period prior to the Effective Date), individuals who
at the beginning of such period constitute the Board, and any new
director (other than a director designated by a Person, as hereinabove
defined, who has entered into an agreement with the Company to effect a
transaction described in clause (A), (C) or (D) of this Section
5(g)(iii)) whose election by the Board or nomination for election by the
Company's stockholders was approved by a vote of at least two-thirds of
the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a
majority thereof; or (C) there occurs a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the
surviving entity) more than fifty percent (50%) of the combined voting
power of the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; or (D) the
stockholders of the Company approve a plan of a complete liquidation of
the Company; or (E) there occurs a closing of a sale or other
disposition by the Company of all or substantially all of the assets of
the Company other than to one or more of the Company's Affiliates or any
trustee or other fiduciary holding securities under an employee benefit
plan or other employee plan of the Company or any of its Affiliates.
(iv) The Company shall promptly reimburse the
Executive for the amount of all reasonable attorneys' fees and expenses
incurred by the Executive in seeking to obtain or enforce any right or
benefit provided the Executive under this Section 5(g).
6. Effect of Termination. The provisions of this Section 6 shall
apply to any termination of this Agreement, pursuant to Section 5 or otherwise.
(a) Payment by the Company of any Final Compensation, Base
Salary, incentive or bonus compensation and any lump sum payment in lieu of
benefits that is due the Executive in each case in accordance with the
applicable termination provision of Section 5 shall constitute the entire
obligation of the Company to the Executive.
(b) Except for any right that the Executive may have to
continue his coverage and that of his eligible dependents at his cost under the
Company's group health and dental plans through the federal law known as "COBRA"
or any successor law, benefits shall terminate pursuant to the terms of the
applicable employee benefit plans based on the date of termination of the
Executive's employment without regard to any continuation of Base Salary or
other payment to the Executive following such date of termination.
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(c) Provisions of this Agreement shall survive any
termination if so provided herein or if necessary or desirable to accomplish the
purposes of other surviving provisions, including without limitation the
obligations of the Executive under Sections 7, 8 and 9 hereof. The obligation of
the Company to make payments to or on behalf of the Executive under Section
5(d), 5(e) or 5(g) hereof is expressly conditioned upon the Executive's
continued full performance of his obligations under Sections 7, 8 and 9 hereof.
The Executive recognizes that, except as expressly provided in Section 5(d),
5(e) or 5(g), no compensation is earned after termination of employment.
7. Confidential Information.
(a) The Executive acknowledges that the Company and its
Affiliates continually develop Confidential Information; that the Executive may
develop Confidential Information for the Company or its Affiliates; and that the
Executive may learn of Confidential Information during the course of employment.
The Executive shall comply with the policies and procedures of the Company and
its Affiliates for protecting Confidential Information and shall not disclose to
any Person or use, other than as required by applicable law or for the proper
performance of his duties and responsibilities to the Company and its
Affiliates, any Confidential Information obtained by the Executive incident to
his employment or other associations with the Company or any of its Affiliates.
The Executive understands that this restriction shall continue to apply after
his employment terminates, regardless of the reason for such termination.
(b) All documents, records, tapes and other media of every
kind and description relating to the business, present or otherwise, of the
Company or its Affiliates and any copies, in whole or in part, thereof (the
"Documents"), whether or not prepared by the Executive, shall be the sole and
exclusive property of the Company and its Affiliates. The Executive shall
safeguard all Documents and shall surrender to the Company at the time his
employment terminates, or at such earlier time or times as the Board or its
designee may specify, all Documents then in the Executive's possession or
control.
8. Assignment of Rights to Intellectual Property.
(a) The Executive agrees to maintain accurate and complete
contemporaneous records of, and to immediately and fully disclose and deliver to
the Company, all Intellectual Property, as hereafter defined.
(b) The Executive hereby represents and warrants that, to
the best of his knowledge, all of the Products resulting from his work for the
Company shall be original and shall not infringe the rights of any third party,
including without limitation intellectual property rights, such as rights
pertaining to patents, trademarks, copyrights and trade secrets.
(c) The Executive hereby assigns and agrees in the future to
assign to the Company (or as otherwise directed by the Company) his full right,
title and interest in and to all Intellectual Property. The Executive agrees to
provide, at the Company's request, all further cooperation which the Company
determines is necessary or desirable to accomplish the
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complete transfer of the Intellectual Property and all associated rights to the
Company, its successors, assigns and nominees, and to ensure the Company the
full enjoyment of the Intellectual Property, including without limitation
executing further applications both domestic and foreign, specifications, oaths,
assignments, consents, releases, government communications and other
commercially reasonable documentation, responding to corporate diligence
inquiries and providing good faith testimony by affidavit, declaration,
deposition, in-person or other proper means, in support of any effort by the
Company to establish, perfect, defend, or otherwise enjoy, in this or any
foreign country, its rights acquired pursuant to this Agreement through
prosecution of governmental filings, regulatory proceedings, litigation or other
means.
(d) To the extent that the Executive cannot assign and
transfer any of his full right, title, and interest in the Intellectual Property
then the Executive hereby grants the Company and its Affiliates an irrevocable,
worldwide, fully paid-up, royalty-free, exclusive license, with the right to
sublicense through multiple tiers, to make, use, sell, improve, reproduce,
distribute, perform, display, transmit, manipulate in any manner, create
derivative works based upon, and otherwise exploit or utilize in any manner the
Intellectual Property. The Executive will not charge the Company for time spent
in complying with any of his obligations under this Section 8. All copyrightable
works constituting Intellectual Property that the Executive creates shall be
considered "work made for hire."
9. Restricted Activities. The Executive agrees that some
restrictions on his activities during and after his employment are necessary to
protect the goodwill, Confidential Information and other legitimate interests of
the Company and its Affiliates:
(a) While the Executive is employed by the Company and for
twenty-four (24) months after his employment terminates (the "Non-Competition
Period"), the Executive shall not, directly or indirectly, whether as owner,
partner, investor, consultant, agent, employee, co-venturer or otherwise,
compete with the Business of the Company and its Affiliates anywhere in the
world or undertake any planning for any business competitive with the Business
of the Company and its Affiliates. For the purposes of this Section 9, the
"Business of the Company and its Affiliates" shall include all Products,
including without limitation (i) immune modulating agents that are protease
inhibitors, (ii) immune modulating agents that are chemically synthesized homo
and hetero bivalent or multivalent conjugates that are designed to induce the
association or aggregation of T-cell surface receptors and that include as one
component a protease inhibitor, (iii) agents that bind to Dipeptidyl Peptidase
IV (DPP IV), a membrane anchored ecto-protease identified as the leukocyte
antigen CD26 and also called CD26, adenosine deaminase binding protein (ADAbp)
and thymocyte activation molecule (THAM), (iv) agents that bind to fibroblast
activation protein (FAP), and (v) all products described and claimed in any
patent application or issued patent owned or licensed by the Company or any of
its Affiliates, and the Executive's undertaking shall encompass all items,
products and services that may be used in substitution for the Products. The
foregoing will not prevent the Executive from owning 2% or less of the
publicly-traded securities of any corporation.
(b) The Executive further agrees that while he is employed
by the Company and during the Non-Competition Period, the Executive will not
hire or attempt to hire any
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employee of the Company or any of its Affiliates, assist in such hiring by any
Person, encourage any such employee to terminate his or her relationship with
the Company or any of its Affiliates, or solicit or encourage any independent
contractor doing business with the Company or any of its Affiliates to terminate
or diminish its relationship with them.
10. Enforcement of Covenants. The Executive acknowledges that he has
carefully read and considered all the terms and conditions of this Agreement,
including without limitation the restraints imposed upon him pursuant to
Sections 7, 8 and 9 hereof. The Executive agrees that said restraints are
necessary for the reasonable and proper protection of the Company and its
Affiliates and that each and every one of the restraints is reasonable in
respect to subject matter, length of time and geographic area. The Executive
further acknowledges that, were he to breach any of the covenants contained in
Sections 7, 8 or 9 hereof, the damage to the Company and its Affiliates would be
irreparable. The Executive therefore agrees that the Company and its Affiliates,
in addition to any other remedies available to them, shall be entitled to
preliminary and permanent injunctive relief against any breach or threatened
breach by the Executive of any of said covenants. The parties further agree
that, in the event that any provision of Section 7, 8 or 9 hereof shall be
determined by any court of competent jurisdiction to be unenforceable by reason
of its being extended over too great a time, too large a geographic area or too
great a range of activities, such provision shall be deemed to be modified to
permit its enforcement to the maximum extent permitted by law.
11. Conflicting Agreements. The Executive hereby represents and
warrants that the execution of this Agreement and the performance of his
obligations hereunder will not breach or be in conflict with any other agreement
to which the Executive is a party or is bound and that the Executive is not now
subject to any covenants against competition or similar covenants or any court
order or other legal obligation that would affect the performance of his
obligations hereunder. The Executive will not disclose to or use on behalf of
the Company any proprietary information of a third party without such party's
consent.
12. Definitions. Words or phrases which are initially capitalized or
are within quotation marks shall have the meanings provided in this Section 12
and as provided elsewhere in this Agreement. For purposes of this Agreement, the
following definitions apply:
(a) "Affiliates" means all persons and entities directly or
indirectly controlling, controlled by or under common control with the Company,
where control may be by either management authority or equity interest.
(b) "Confidential Information" means any and all information
of the Company and its Affiliates that is not generally known by others with
whom any of them competes or does business, or with whom any of them plans to
compete or do business and any and all information, publicly known in whole or
in part or not, which, if disclosed by the Company or any of its Affiliates
would assist in competition against them. Confidential Information includes
without limitation such information relating to (i) the development, research,
testing, manufacturing, marketing and financial activities of the Company and
its Affiliates, (ii) the Products, (iii) the costs, sources of supply, financial
performance and strategic plans of the
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Company and its Affiliates, (iv) the identity and special needs of the customers
of the Company and its Affiliates and (v) the people and organizations with whom
the Company and its Affiliates have business relationships and the nature and
substance of those relationships. Confidential Information also includes any
information that the Company or any of its Affiliates has received, or may
receive hereafter, belonging to customers or others with any understanding,
express or implied, that the information would not be disclosed.
(c) "Intellectual Property" means inventions, discoveries,
developments, methods, processes, compositions, works, concepts and ideas
(whether or not patentable or copyrightable or constituting trade secrets) (i)
that are conceived, made, created, developed or reduced to practice by the
Executive (whether alone or with others, whether or not during normal business
hours or on or off Company premises) at any time during the Executive's
employment or other associations with the Company, whether before or after the
Effective Date, that relate to either the Products or any prospective activity
of the Company or any of its Affiliates or that make use of Confidential
Information or (ii) that, although conceived, made, created, developed or
reduced to practice by the Executive prior to the Executive's employment or
other associations with the Company, have been incorporated by the Executive
into any of the Products.
(d) Except as otherwise provided for purposes of the
definition of "Change of Control" set forth in Section 5(g)(iii) above, "Person"
means an individual, a corporation, a limited liability company, an association,
a partnership, an estate, a trust and any other entity or organization, other
than the Company or any of its Affiliates.
(e) "Products" mean all products planned, researched,
developed, tested, manufactured, sold, licensed, leased or otherwise distributed
or put into use by the Company or any of its Affiliates, together with all
services provided or planned by the Company or any of its Affiliates, during the
Executive's employment.
13. Withholding. All payments made by the Company under this
Agreement shall be reduced by any tax or other amounts required to be withheld
by the Company under applicable law.
14. Assignment. Neither the Company nor the Executive may make any
assignment of this Agreement or any interest herein, by operation of law or
otherwise, without the prior written consent of the other; provided, however,
that the Company may assign its rights and obligations under this Agreement
without the consent in the event that the Executive is transferred to a position
with any of the Affiliates or in the event that the Company shall hereafter
affect a reorganization, consolidate with, or merge into, any other Person or
transfer all or substantially all of its properties or assets to any other
Person. This Agreement shall inure to the benefit of and be binding upon the
Company and the Executive, their respective successors, executors,
administrators, heirs and permitted assigns.
15. Severability. If any portion or provision of this Agreement
shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this
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Agreement, or the application of such portion or provision in circumstances
other than those as to which it is so declared illegal or unenforceable, shall
not be affected thereby, and each portion and provision of this Agreement shall
be valid and enforceable to the fullest extent permitted by law.
16. Waiver. No waiver of any provision hereof shall be effective
unless made in writing and signed by the waiving party. The failure of either
party to require the performance of any term or obligation of this Agreement, or
the waiver by either party of any breach of this Agreement, shall not prevent
any subsequent enforcement of such term or obligation or be deemed a waiver of
any subsequent breach.
17. Notices. Any and all notices, requests, demands and other
communications provided for by this Agreement shall be in writing and shall be
effective when delivered in person or deposited in the United States mail,
postage prepaid, registered or certified, and addressed to the Executive at his
last known address on the books of the Company or, in the case of the Company,
at its principal place of business, attention of the President and CEO, or to
such other address as either party may specify by notice to the other actually
received.
18. Entire Agreement. This Agreement constitutes the entire
agreement between the parties and supersedes all prior communications,
agreements and understandings, written or oral, with respect to the terms and
conditions of the Executive's employment.
19. Amendment. This Agreement may be amended or modified only by a
written instrument signed by the Executive and by an expressly authorized
representative of the Company.
20. Headings. The headings and captions in this Agreement are for
convenience only and in no way define or describe the scope or content of any
provision of this Agreement.
21. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original and all of which together shall
constitute one and the same instrument.
22. Governing Law. This is a Massachusetts contract and shall be
construed and enforced under and be governed in all respects by the laws of the
Commonwealth of Massachusetts, without regard to the conflict of laws principles
thereof.
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IN WITNESS WHEREOF, this Agreement has been executed as a sealed
instrument by the Company, by its duly authorized representative, and by the
Executive, as of the date first above written.
THE EXECUTIVE: THE COMPANY
/s/ Xxxxx Xxxxx By: /s/ Xxxxxx X. Xxxxxxx, Xx.
------------------ --------------------------
Xxxxx Xxxxx Xxxxxx X. Xxxxxxx, Xx.
President and Chief Executive Officer
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