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EXHIBIT 10.7
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into and shall
be effective as of January 1, 1998 (the "Effective Date"), by and among JDA
SOFTWARE GROUP, INC., a Delaware corporation ("JDA"), JDA SOFTWARE, INC., an
Arizona corporation and subsidiary of JDA ("Subsidiary"), and XXXXXXXXX X. XXXXX
("Employee").
RECITALS
A. Employee was formerly employed by Subsidiary, in the capacity of
President pursuant to that certain Employment Agreement dated effective as of
March 30, 1995 and First Amendment to Employment Agreement dated January 12,
1996 (collectively, the "Original Agreement").
B. Employee resigned as President of Subsidiary and accepted an
appointment to the newly created office of the Co-Chairman of the Board of
Directors of JDA, effective as of October 11, 1997.
C. Subsidiary and Employee now desire to terminate the Original
Agreement to reflect Employee's voluntary termination of employment with
Subsidiary, and JDA desires to employ Employee and Employee desires to accept
employment with JDA on the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the mutual premises herein
contained, the sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
AGREEMENT
1. TERMINATION OF ORIGINAL AGREEMENT. The Original Agreement is hereby
terminated as of the Effective Date. Such termination by Employee is voluntary,
and Employee expressly agrees that no additional compensation is due to Employee
under the terms of the Original Agreement.
2. EMPLOYMENT. JDA agrees to employ Employee as Co-Chairman of the
Board of Directors and Employee agrees to accept such employment with JDA on the
terms and subject to the conditions set forth in this Agreement.
3. TERM. The term of this Agreement (the "Employment Term") shall
commence on the Effective Date and continue until terminated as hereafter
provided.
4. COMPENSATION.
a. Base Salary. During the Employment Term, JDA agrees to pay
Employee a salary at the rate of One Hundred Thousand and No/100 Dollars
($100,000.00) per year, payable in equal semi-monthly installments of Four
Thousand One Hundred Sixty-Six and
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66/100 Dollars ($4,166.66) each (the "Base Salary"). Employee's Base Salary will
be reviewed by the parties on or before each anniversary of the Effective Date
and may be increased or decreased from time to time during the Employment Term
by such amount(s) as JDA and Employee may agree to in writing.
b. Bonus Compensation. In addition to Employee's Base Salary, JDA
may pay to Employee such bonus(es) as the Board of Directors of JDA ("Board"),
in its sole and absolute discretion, may from time to time deem appropriate.
Any bonus(es) shall be in such amounts and payable at such times as the Board,
in its sole and absolute discretion, may determine.
c. No Additional Compensation. Employee acknowledges and agrees
that, except as expressly provided in this Section 4 and Sections 6 and 7 below
(relating to certain expense reimbursements and employment benefits), Employee
is not entitled to any other or additional compensation or payments as a result
of his employment with JDA.
d. Taxes. All compensation paid to Employee pursuant to this
Agreement shall be subject to customary withholding taxes and other employment
taxes or levies as required with respect to compensation paid by JDA to an
employee.
5. DUTIES. Employee shall serve as the Co-Chairman of the Board of JDA
and in the executive capacity involved in mergers and acquisitions and strategic
alliances. Employee agrees that during the Employment Term he will devote his
best efforts and that amount of business time, attention, skill and efforts to
the business and affairs of JDA, and to the furtherance of JDA's best interests
as is necessary to fulfill Employee's duties as set forth herein. In addition to
the duties and responsibilities described above, JDA may, from time to time,
establish standards and regulations regarding its employees' employment (the
"Employment Standards"). Employee further agrees that in the performance of his
duties and in all respects of his employment, Employee shall also comply with
any Employment Standards which JDA may from time to time establish. To the
extent of any inconsistencies between this Agreement and any Employment
Standards, the terms of this Agreement shall control.
6. EXPENSE REIMBURSEMENT, FACILITIES AND BENEFITS.
a. Reimbursement of Expenses and Facilities. JDA shall pay or
reimburse Employee for all reasonable travel and other expenses incurred by
Employee in performing Employee's obligations under this Agreement. JDA further
agrees to furnish Employee with such assistance and accommodations (i.e., an
office in the size, type and quality as provided to Employee prior to the
Effective Date) as shall be suitable to the character of Employee's position
with JDA and adequate for the performance of Employee's duties hereunder.
b. Other Benefits. During the period of employment under this
Agreement, Employee (and his spouse and eligible dependents) shall be entitled
to receive all other benefits of employment generally available to other members
of JDA's management and those benefits for which key executives are or shall
become eligible, when and as Employee becomes eligible
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therefor, including, without limitation, group health, life and disability
insurance benefits and participation in JDA's 401(k) Plan.
c. Benefits Payable Upon Disability or Death. If Employee shall be
prevented during the term of this Agreement from properly performing services
hereunder by reason of illness or other physical or mental incapacity
("disabilities"), JDA shall continue to pay Employee the then current salary
hereunder for a period of twelve (12) months, following the onset of such
disability. In the event of the death of Employee during the term of this
Agreement, Employee's then current salary payable hereunder shall continue to be
paid, as a death benefit, to Employee's surviving spouse, or if there is no
spouse surviving, then to Employee's personal representative (as the case may
be) for a period of twelve (12) months following Employee's death.
7. TERMINATION.
a. Termination for Death or Permanent Disability. Upon Employee's
death or permanent disability (a disability which continues for a period of
twelve (12) months from the date of onset of such disability), this Agreement
shall terminate; provided that Employee and Employee's spouse (or surviving
spouse, as the case may be) and eligible dependents shall be entitled to
continuation rights under JDA's group health plans as required under COBRA, with
the "qualifying event" occurring and minimum required period of coverage to
commence upon the termination of this Agreement; and provided further that, in
the event of Employee's death, Employee's surviving spouse or Personal
Representative, as the case may be, shall be entitled to the death benefits
described in Section 6(c).
b. Termination by JDA Without Cause. JDA may terminate this
Agreement without cause on three (3) years' written notice to Employee. For a
period of one (1) year following the date such written notice is given to
Employee, all the terms and conditions of this Agreement shall remain in full
force and effect. Effective one (1) year following the date JDA gives such
written notice to Employee, JDA and Employee may agree upon new duties to be
assigned to Employee (commensurate with Employee's level of expertise and
knowledge) and a salary (also commensurate with Employee's duties agreed to by
the parties) to be paid to Employee for the remaining two (2) year term of this
Agreement; provided that (regardless of whether the parties agree on Employee's
new duties and salary) for the remaining two (2) years of the term of this
Agreement, JDA will continue to provide Employee with the expense
reimbursements, facilities and benefits described in Section 6. After the
expiration of such two (2) year period, Employee and his spouse and eligible
dependents shall be entitled to continuation benefits under JDA's group health
plans as required under COBRA, with the "qualifying event" occurring and minimum
required period of coverage to commence upon the termination of this Agreement.
c. Termination by Employee Without Cause. Employee may terminate
this Agreement without cause on one (1) year's written notice to JDA. During
such one year period, this Agreement and all of the terms hereof shall be in
full force and effect and shall not be affected by such written notice of
termination. Upon the conclusion of such one year period, this
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Agreement shall terminate, and thereafter Employee and his spouse and eligible
dependents shall be entitled to continuation rights under JDA's group health
plans as required under COBRA, with the "qualifying event" occurring and minimum
required period of coverage to commence upon the termination of this Agreement.
d. Termination for Cause. JDA may, without liability, terminate
Employee's employment hereunder for cause at any time upon written notice from
the Board of Directors specifying such cause; provided, however, that such
written notice shall not be delivered until after the Board of Directors shall
have given Employee written notice specifying the conduct alleged to have
constituted such cause and Employee has failed to cure such conduct, if curable,
within thirty (30) days following receipt of such notice. As used in this
Agreement, the term "cause" shall mean a willful breach of duty in the course of
Employee's employment or habitual neglect of Employee's duty.
(i) Contesting Termination. In the event of a termination for
cause pursuant to this Section 7(d), if Employee advises JDA in writing that
Employee disputes its action, JDA shall continue to pay Employee's then-current
compensation as specified in this Agreement until the earlier of: (A) a final
decision by the arbitrator(s) affirming JDA's actions; or (B) the mutual written
agreement of the parties. If the arbitrator(s) finds in favor of Employee and
does not confirm JDA's actions in attempting to terminate this Agreement, then
the term of this Agreement shall remain unaffected and Employee shall continue
in the employment of JDA hereunder.
(ii) Severance Benefits. Notwithstanding anything to the contrary
in this Agreement, if Employee is terminated by JDA for cause in accordance with
this Section 7(d) and if Employee does not contest such termination as provided
in this Section 7(d)(i) or if Employee does contest such termination and the
arbitrator(s) issues an award affirming JDA's action, then Employee shall be
entitled to a severance benefit equal to Employee's then current salary
hereunder payable for one (1) year following the date of the expiration of the
cure period set forth in this Section 7(d). Such severance benefit shall be
payable at the same time and in the same amount as Employee's then current
salary. During such one (1) year period, JDA shall continue to provide Employee
and his spouse and eligible dependents the same group health plan benefits
provided to its other executives. Following the expiration of such one year
period, Employee and his spouse and eligible dependents shall be entitled to
such continuation rights under JDA's groups health plan as required under COBRA
with the "qualifying event" occurring and minimum period of coverage to commence
upon the termination of such one (1) year period.
8. NON-COMPETITION AND CONFIDENTIALITY.
a. Consideration. Employee unconditionally and irrevocably covenants
and agrees to be bound by the provisions of this Section 8. Employee
acknowledges and agrees that employment by JDA and the benefits Employee is
entitled to receive pursuant to this Agreement constitute the consideration paid
by JDA for Employee's agreement to be bound by this Section 8. Employee further
acknowledges and agrees that the foregoing consideration is valuable and
sufficient to support the restrictions placed on Employer by this Section 8.
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Employee further acknowledges that JDA has entered into this Agreement in strict
reliance on Employee's Agreement to, and the enforceability of, each term and
provision set forth in subsections 8(b) through 8(g) below.
b. Definition of JDA. For purposes of this Section 8, the term "JDA"
shall include all of JDA's subsidiaries, divisions and affiliates as from time
to time constituted.
c. Confidentiality. Employee shall execute and deliver to JDA a
letter agreement in the from attached hereto as Exhibit "A", which is
incorporated by this reference, whereby Employee covenants and agrees to keep
confidential that information known by or made available to Employee on account
of his relationship with JDA.
d. Covenant Not to Hire Employees. Employee covenants and agrees
that, for the Non-Competition Period, as defined below, Employee shall not,
directly or indirectly, hire or engage or attempt to hire or engage any
individual who shall have been an employee of JDA at any time during the period
beginning one (1) year prior to the Effective Date and ending at the end of the
Non-Competition Period, whether for or on behalf of Employee or for any entity
in which Employee 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.
e. Non-Competition Agreement. In order to afford fair protection to
JDA and the goodwill it has established, Employee covenants and agrees as
follows:
(i) Non-Competition. Employee represents, warrants and agrees
with JDA that during the Employment Term and for a period of three (3) years
thereafter (the "Non-Competition Period"), Employee will not, directly or
indirectly, within the counties of any States of the United States or in any
city in any country in which JDA currently or upon Employee's termination of
employment has business offices or conducts business ("Prohibited Territory"),
directly or indirectly, either alone or with others, engage, and shall not make
equity investments in, be employed by, consult for, have an interest in or in
any way assist any person, firm or company, engaged in the business or practice
of developing, marketing, licensing and servicing retail merchandise management
and/or point of sale software directed to the retail industry and related
activities ("Prohibited Activity"). This subparagraph (i) shall not apply to (1)
such activities by Employee during the term of and as reasonably incidental to
Employee's performance under this Agreement for the benefit of JDA and its
affiliates; (2) investments Employee may make in publicly held companies of less
than 5% of such company's outstanding shares; or (3) investments made by
Employee in business entities which a reasonable business person would not view
to be a competitor of JDA.
(ii) Non-Solicitation. Employee further covenants and agrees,
during the Non-Competition Period, that Employee will not directly or indirectly
canvass, solicit, contact or accept any person or entity (or the employee or
agent of such person or entity) who is or was an existing or prospective client,
customer, licensee, purchaser, supplier, distributor, manufacturer or contractor
of or to JDA and with whom Employee has obtained significant business contacts
("Business Contacts"), for the purpose of directly or indirectly engaging in any
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Prohibited Activity. Employee acknowledges that the geographic scope of this
non-solicitation covenant is not limited to the Prohibited Territory. The
geographic scope has not been limited since the residences of the Business
Contacts are not limited to the Prohibited Territory and JDA has a legitimate
protectable business interest in preventing the solicitation of its Business
Contacts regardless of the geographical locations of the residences of the
Business Contracts or where Employee is engaged in business when such
solicitations are attempted. Therefore, Employee agrees that the time and
geographic provisions of this non-solicitation covenant are reasonable.
f. Reasonableness of Restrictions; Severability.
(i) Reasonableness. EMPLOYEE HAS CAREFULLY READ AND CONSIDERED
THE PROVISIONS OF SECTIONS 8(a) THROUGH 8(g), INCLUDING THE AGREEMENT SET FORTH
ON EXHIBIT "A", AND HAVING DONE SO, AGREES THAT THE RESTRICTIONS SET FORTH IN
THESE SECTIONS ARE FAIR AND REASONABLE AND ARE REASONABLY REQUIRED FOR THE
PROTECTION OF THE INTERESTS OF JDA AND ITS BUSINESS, OFFICERS, DIRECTORS AND
EMPLOYEES. Employee further agrees that the restrictions set forth in this
Agreement do not impair Employee's ability to enter into the field or fields of
Employee's choice, subject to the restrictions on non-competition in the
Prohibited Territory and subject to all other provisions of this Section 8.
(ii) Severability. The provisions of this Agreement shall be
deemed severable, and the invalidity or unenforceability of any one or more of
the provisions shall not affect the validity and enforceability of the remaining
provisions.
(iii) Assignment. Employee acknowledges the right and ability of
JDA to assign its rights under this Section 8 to third parties, whether in
connection with a merger, reorganization, liquidation or otherwise.
(iv) Reformation. In the event that any of the provisions of
this Section 8 should ever be deemed to exceed the time or geographic
limitations permitted by the applicable laws, then Employee and JDA covenant and
agree that such provisions shall be reformed to the maximum time or geographic
limitations permitted by applicable law.
g. Remedies of JDA. If Employee violates any of the provisions of
this Section 8, then JDA shall, notwithstanding any other term or provision of
this Agreement, have the unconditional right to:
(i) Withhold any payments, compensation, distributions or
consideration otherwise owed or to be paid to Employee pursuant to this
Agreement or any other agreement.
(ii) Seek, apply for and receive a temporary restraining order
without notice enjoining Employee and/or Employee's partners, co-venturers,
employers, employees, servants, agents, representatives and any and all persons
directly or indirectly acting for, on
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behalf of or with Employee, from continued violation of this Section 8; for that
purpose only, Employee waives notice of any petition or application for a
temporary restraining order.
(iii) Seek and recover monetary damages for Employee's violation
of the provisions of this Section 8.
(iv) Avail itself of all of the above remedies and all other
available legal and equitable remedies; these remedies shall be cumulative and
not mutually exclusive.
In addition, Employee covenants and agrees that, if he shall violate any of the
covenants or agreements under this Section 8, JDA shall be entitled to an
accounting and repayment of all profits, compensation, royalties, commissions,
remunerations or benefits which Employee directly or indirectly shall have
realized or may realize relating to, growing out of or in connection with any
such violation; such remedies shall be in addition to and not in limitation of
any injunctive relief or other rights or remedies to which JDA is or may be
entitled at law or in equity or otherwise under this Section 8.
9. MISCELLANEOUS.
a. Arbitration. If any controversy or claim arising out of this
Agreement (except for any controversy or claim arising out of Section 8) cannot
be resolved by the parties, such controversy or claim shall be resolved by
arbitration in accordance with the then current rules of the American
Arbitration Association governing commercial disputes (except as provided in
Section 8(f)(ii)). Such matters shall be arbitrated in Phoenix, Arizona, and,
for purposes of this Agreement, each party consents to arbitration in such
place. Arbitration proceedings shall commence when any party notifies the other
that a dispute subject to arbitration exists and requests that the dispute be
arbitrated. If the parties to a dispute cannot, within thirty (30) days after
the date arbitration proceedings commence, mutually agree upon an arbitrator or
arbitrators to settle their dispute, each party to the dispute shall select an
arbitrator. The two arbitrators shall, within fifteen (15) days after the
appointment of the last arbitrator, select a third arbitrator and the three
arbitrators shall determine the matter. Each arbitrator shall act impartially.
If for any reason an arbitrator is not appointed within the time provided or the
arbitrators appointed by the parties cannot agree upon a third arbitrator, then
an arbitrator shall be appointed by the Superior Court of the State of Arizona,
in and for the County of Maricopa, in accordance with A.R.S. Section 12-1501 et
seq. Unless the parties mutually agree otherwise, any arbitrator selected shall
be familiar with employer-employee disputes. The final decision will be that of
the sole arbitrator or of the majority of arbitrators, and shall be final and
binding upon the parties, except as otherwise provided by law. The sole
arbitrator or the majority of arbitrators shall also determine the allocation of
costs of such arbitration among the parties, and shall have the right to award
to the prevailing party all costs of arbitration, regardless of whether such
costs are taxable as such under Arizona law, including reasonable attorneys'
fees.
b. Assignment. Employee's rights and obligations under this
Agreement shall not be transferable by assignment or otherwise, nor shall
Employee's rights be subject to encumbrance or subject to the claims of JDA's
creditors. Nothing in this Agreement shall prevent the consolidation of JDA
with, or its merger into, any other corporation, or the sale by
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JDA of all or substantially all of its properties or assets; and this Agreement
shall inure to the benefit of, be binding upon and be enforceable by, any
successor surviving or resulting corporation, or other entity to which such
assets shall be transferred. This Agreement shall not be terminated by the
voluntary or involuntary dissolution of JDA.
c. Attorneys' Fees. In the event any party is required to hire an
attorney to enforce any of the terms and conditions of this Agreement, the
prevailing party shall be entitled to all reasonable attorneys' fees and costs
incurred.
d. Notices. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing, and hand delivered or sent by
certified or registered mail, return receipt requested, to his last known
residence in the case of Employee, or to its principal offices in the case of
JDA. Such notice shall be effective upon receipt in the case of hand-delivery or
two (2) days after deposit in the case of certified or registered mail.
e. Waiver of Breach. The waiver by any party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by any party.
f. Severability. If any court of competent jurisdiction rules that
any portion of this Agreement is invalid for any reason, the remaining portions
of this Agreement shall nevertheless remain in full force and effect.
g. Non-Disclosure. Employee covenants and agrees to keep all terms
of this Agreement strictly confidential, and that Employee will not disclose any
information concerning this Agreement to anyone, including, but not limited to,
present or prospective employees of JDA, unless compelled to do so by court
order or other lawful authority.
h. Employee Review. By executing this Agreement, Employee represents
and covenants that he has carefully read each and every term and provision
contained in this Agreement in its entirety, that Employee has had an
opportunity to discuss the provisions of this Agreement with an attorney, that
Employee understands, accepts and agrees to be bound by each and every term and
provision of this Agreement and that Employee has executed this Agreement
knowingly, voluntarily and without any duress, compulsion or undue influence.
i. Amendment. This Agreement contains the entire and complete
understanding of the parties with regard to Employee's employment by JDA, and
supersedes any and all prior written or oral agreements of the parties. This
Agreement may not be varied, modified or contradicted by any other Agreement
unless such Agreement is later in time, in writing, and duly executed by the
party to be bound.
j. Governing Law. This Agreement is executed in, and shall be
governed by and construed in accordance with, the laws of the State of Arizona.
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IN WITNESS WHEREOF, the parties have executed duplicate originals of
this Agreement as of the date first hereinabove set forth.
JDA JDA SOFTWARE GROUP, INC., a Delaware
corporation
By /s/ Xxxxx X. Xxxxxxx
---------------------------------------
Xxxxx X. Xxxxxxx
Chief Executive Officer
Subsidiary JDA SOFTWARE, INC., an Arizona corporation
By /s/ Xxxxx X. Xxxxxxx
---------------------------------------
Xxxxx X. Xxxxxxx
Chief Executive Officer
Employee /s/ Xxxxxxxxx X. Xxxxx
------------------------------------------
XXXXXXXXX X. XXXXX
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EXHIBIT A
JDA SOFTWARE GROUP, INC
00000 X. Xxxxx Xxxx. Xxxxx 0000
Xxxxxxx, XX 00000-0000
January 1, 1998
Xx. Xxxxxxxxx X. Xxxxx
0000 Xxxxx 00xx Xxxxx
Xxxxxxxx Xxxxxx, Xxxxxxx 00000
Dear Mr. Pakis:
This letter agreement sets forth and confirms certain understandings
between you and JDA Software Group, Inc., a Delaware corporation ("Company")
with respect to your employment with the Company and your responsibilities and
obligations to the Company, its current and future affiliates (collectively, the
"Affiliates"), and third parties who have provided confidential information to
the Company or any of its Affiliates ("Third-Party Beneficiaries").
You understand that your employment (or continued employment) with the
Company is conditioned upon and in consideration for your entering into this
agreement. This agreement is intended to protect important interests of the
Company, its Affiliates, and Third-Party Beneficiaries, particularly the
interests of those entities in valuable technology, business and confidential
information that the Company and its Affiliates have acquired or obtained access
to over the years. It is hoped that in the long run the terms of this agreement
will be a benefit to all personnel by promoting the welfare and success of the
Company as a leader in the industry and in the community.
During the course of your employment, you will obtain access to
information regarding the business of the Company and its Affiliates which is
confidential to the Company, its Affiliates or Third-Party Beneficiaries
("Confidential Information"). For the purposes of this agreement, "Confidential
Information" includes, but is not limited to:
(1) Application, data base, and other computer software developed or
acquired by the Company or any of its Affiliates, whether now or hereafter
existing, and all modifications, enhancements and versions thereof and all
options available with respect thereto, and all future products developed or
derived therefrom;
(2) Source and object codes, flowcharts, algorithms, coding sheets,
routines, sub-routines, design concepts and related documentation and manuals;
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January 1, 1998
Page 2
(3) 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 data and other materials and information relating to the Company's
business and activities and the manner in which the Company does business;
(4) 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;
(5) Any other materials or information related to the business or
activities of the Company that are not generally known to others engaged in
similar businesses or activities;
(6) All ideas which are derived from or related to your access to or
knowledge of any of the above enumerated materials and information; and
(7) Any materials or information related to the business or activities
of the Third-Party Beneficiaries that are received by the Company or any
Affiliate in confidence or subject to nondisclosure or similar covenants,
including without limitation, confidential, proprietary business records,
financial information, trade secrets, strategies, methods and practices of
licensees of JDA software.
Maintaining the confidentiality of the Confidential Information is of
utmost importance to the Company and its Affiliates. Accordingly, you agree
that, except in the performance of your duties as an employee of the Company,
from and after the date of this agreement (including after the termination of
your relationship with the Company, for whatever reason), you will not disclose
to any person, association, firm, corporation or other entity in any manner,
directly or indirectly, any of the Confidential Information (in whatever form),
received, acquired, or developed by you through your association with the
Company or any Affiliate, or use, or permit any person, association, corporation
or other entity to use, in any manner, directly or indirectly, any such
Confidential Information.
When your relationship with the Company ends (regardless of the
reason), and earlier if the Company requests, you agree to return to the Company
all materials, correspondence, documents and other writings, computer programs
and printouts, and other information in written, graphic, magnetic, optical,
computerized or other form, which relate to or reflect any Confidential
Information, or the business of the Company or any Affiliate, and you agree that
you will not retain any copies thereof, regardless of where or by whom such
materials and information were kept or prepared.
You acknowledge that items (1) through (6) of the Confidential
Information that you make, conceive, discover or develop, whether alone or
jointly with others, at any time during your employment with the Company,
whether at the request or upon the suggestion of the
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January 1, 1998
Page 3
Company or otherwise, shall be the sole and exclusive property of the Company;
provided that such items relate to or are useful in connection with any business
now or hereafter carried on or contemplated by the Company or any Affiliate,
including developments or expansions of their present fields of operations. You
agree to promptly disclose to the Company all Confidential Information made,
conceived, discovered, or developed in whole or in part by you for the Company
or any Affiliate during the term of your employment with the Company and to
assign to the Company or such Affiliate any right, title or interest you may
have in such Confidential Information. You agree to execute any instruments and
to do all other things reasonably requested by the Company (both during and
after your employment with the Company) in order to vest more fully in the
Company or such Affiliate all ownership rights in those items hereby transferred
by you to the Company or such Affiliate. If any one or more of such items are
protectable by copyright, and are deemed in any way to fall within the
definition of "work made for hire," as that term is defined in 17 U.S.C. Section
101, such works shall be considered "works made for hire," the copyright of
which shall be owned solely, completely and exclusively by the Company or such
Affiliate. If any one or more of the aforementioned items are protectable by
copyright and are not considered to be included in the categories of works
covered by the "work made for hire" definition contained in 17 U.S.C. Section
101, such works shall be deemed to be assigned and transferred completely and
exclusively to the Company or such affiliate by virtue of your execution of this
letter.
The terms and provisions of this Agreement shall be binding upon you
and the Company, and its successors and assigns and shall inure to the benefit
of you, the Company, its Affiliates and the Third-Party Beneficiaries. The
failure of the Company or any Affiliate at any time or from time to time to
require performance of your obligations under this agreement shall in no manner
affect the right of the Company or such Affiliate to enforce any provisions of
this agreement at a subsequent time, and shall not constitute a waiver of any
rights arising out of any subsequent or prior breach. This agreement (a) may not
be modified orally, but only by written agreement signed by you and the designee
of the Company's Board of Directors; and (b) supersedes any prior agreements on
this subject. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of the other
provisions of this Agreement. Nothing in this Agreement shall be construed as a
guarantee that your employment will continue for any specific period of time.
This Agreement shall be governed by and construed in accordance with the laws of
Arizona.
If this is consistent with your understanding of the terms and
conditions of your employment, please so indicate by signing in the space
provided below.
JDA SOFTWARE GROUP, INC.
By: /s/ Xxxxx X. Xxxxxxx
-----------------------
Xxxxx X. Xxxxxxx
Chief Executive Officer
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January 1, 1998
Page 4
ACCEPTED AND AGREED:
/s/ Xxxxxxxxx X. Xxxxx
-----------------------
XXXXXXXXX X. XXXXX
