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EXHIBIT 10.29
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT dated October 18,2000 ("Employment Agreement") by and
between MKS Instruments, Inc., a Massachusetts Corporation (the "Corporation"),
and F. Xxxxxx XxXxxx of Westford, MA (the "Employee").
WHEREAS, the Corporation and the Employee desire to provide for the employment
of the Employee by the Corporation:
NOW, THEREFORE, in consideration of the premises and the mutual promises
contained herein, the Corporation and the Employee hereby agree as follows:
(1) Term of Employment: The Corporation hereby employs the Employee,
and the Employee hereby accepts employment with the Corporation, for a period
commencing as of October 18, 2000 and continuing thereafter until terminated as
provided in this Section (1). Either the Corporation or the Employee may
terminate the employment of the Employee under this Employment Agreement at any
time after October 18, 2000 by giving written notice to the other party stating
its or his election to terminate the employment of the Employee under this
Employment Agreement. The employment of the Employee under this Employment
Agreement shall terminate thirty (30) days after the date of receipt by the
other party of such notice; provided, however, that the employment of the
Employee under this Employment Agreement is subject to prior termination as
hereinafter provided in Section (5).
(2) Capacity: The Employee shall be employed by the Corporation in the
position of Corporate Vice President and General Manager of Pressure Products
and shall perform such duties as shall be assigned to Employee by the President
& COO of the Corporation.
(3) Extent of Services: During the term of employment of the Employee
under this Employment Agreement, the Employee shall devote his full time to, and
use his best efforts in the furtherance of, the business of the Corporation and
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shall not engage in any other business activity which interferes in any way with
the Employee's performance of his duties to the Corporation, whether or not such
business activity is pursued for gain or any other pecuniary advantage, without
the prior written consent of the Corporation.
(4) Compensation: In consideration of the services to be rendered by
the Employee under this Employment Agreement, the Corporation agrees to pay, and
the Employee agrees to accept, the following compensation:
(a) Base Salary: A base salary at the rate of one hundred ninety
thousand dollars ($190,000) per year for the term of employment of the Employee
under this Employment Agreement. The base salary shall be payable in equal
biweekly installments subject to usual withholding requirements. This salary
will be reviewed annually according to the established practices of the company.
No overtime pay will be paid to the Employee by the Corporation.
(b) Incentive: Beginning January 1, 2000 for each calendar year
of the corporation during the term of employment of the Employee under this
Employment Agreement, the Employee shall be entitled to participate in a
Management Incentive Program pursuant to the terms of which the Employee may
receive compensation in addition to his base salary if the Corporation attains
its consolidated financial goals during such calendar year of the Corporation.
The "targeted" additional compensation goal for the Employee shall be 40% of his
earnings. The Management Incentive Program, including the consolidated financial
goals established by the Corporation for the calendar year and the formula to be
used to determine the payment of amounts under the Management Incentive Program,
will be communicated to the Employee in writing prior to the beginning of each
calendar year of the Corporation.
If there shall be any disagreement between the Corporation and
the Employee as to the calculation of the Management Incentive Bonus in any
calendar year of the Corporation during the term of employment of the Employee
under this Employment Agreement, the decision of the independent Public
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Accounting firm of the corporation as to the amount of the Management Incentive
Bonus of the Corporation shall be conclusive and binding on the corporation and
the Employee. The Employee shall be entitled to inspect any certificate of such
independent public accounting firm as to the calculation of the Management
Incentive Bonus of the Corporation in any calendar year of the Corporation
during the term of employment of the Employee under this Employment Agreement.
Incentive payments shall be payable to the Employee on or before
March 31 after the end of each calendar year of the Corporation during the term
of employment of the Employee under this Employment Agreement.
The Employee will not receive any payment under the Management
Incentive Program for any calendar year in which the Employee is not actively
employed on the last day of that calendar year, but the Employee need not be
actively employed at the time the payment is actually made.
(c) MKS Instruments Profit Sharing and Retirement Savings Plan:
The Employee shall be eligible to become a participant under the profit
sharing plan of the Corporation on fulfilling the conditions set forth in the
MKS Instruments Profit Sharing and Retirement Savings Plan of the Corporation.
(d) Vacation: The Employee shall be entitled to an annual
vacation leave of 15 days at full pay during each year of this Employment
Agreement, subject to the Employee arranging such vacation so as not to affect
adversely the ability of the Corporation to transact its necessary business.
Vacation shall accrue at the rate of 1.25 days per month.
(e) Life Insurance: The Corporation shall provide, and pay all
of the premiums for, term life insurance in the amount of $250,000 for the
Employee during the term of employment of the Employee under this Employment
Agreement in accordance with the term life insurance plan of the Corporation.
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(f) Medical/Dental Insurance: The Corporation shall provide
group medical/dental insurance for the Employee and his eligible family members
under the Plans of the Corporation applicable to the Employee during the term of
employment of the Employee under this Employment Agreement. In addition, the
Corporation shall provide to the Employee a supplemental medical/dental plan
that will reimburse the Employee for the cost of any medically necessary
services not paid under the primary medical/dental insurance plans, subject to
an annual limit of $2500.
(g) Stock Options: The Corporation hereby grants to the
Employee an option to purchase 75,000 shares of common stock, no par value, of
the Corporation at the fair market value of the stock at close of business on
October 18, 2000. The foregoing options shall be issued pursuant to and
subject to the terms of the Corporation's Amended and Restated 1995 Stock
Incentive Plan.
(h) Company Car Allowance: The Corporation shall pay the
Employee $650 per month during the term of his employment as a company car
allowance.
(i) Other Benefits: The Corporation shall provide other
benefits for the employee under the Plans of the Corporation applicable to the
Employee during the term of employment of the Employee under this Employment
Agreement.
(5) Termination: The employment of the Employee under this Employment
Agreement shall terminate:
(a) On the expiration of the period of employment as provided
in Section (1).
(b) Upon the death of the Employee.
(c) At the election of the Corporation (i) if the Employee
shall fail, or refuse, to perform the services required of him under this
Employment Agreement, or (ii) if the Employee shall fail, or refuse, to
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perform the other covenants and agreements required of him under this Employment
Agreement, or (iii) "for cause", which term shall mean acts or actions
detrimental to the best interests of the Corporation.
(6) Payment Upon Termination:
(a) (i) If the employment of the Employee is terminated by the
Corporation "Without Cause", the Employee shall be entitled to a termination
benefit of six (6) months compensation for the duration of this agreement.
(ii) If the Employee is terminated by the Corporation
"Without Cause", the Employee will be paid all accrued , but unpaid, salary,
bonus, vacation and other benefits.
(iii) If the Employee is terminated by the
Corporation "Without Cause", the Corporation shall continue to provide the
Employee life insurance, medical insurance, and dental insurance for the
duration of the Employee's termination benefit.
(b) If the employment of the Employee is terminated by death,
the Corporation shall pay to the estate of the Employee all accrued, but unpaid,
salary, bonus, vacation and other benefits which would otherwise be payable to
the Employee at the end of the month in which his death occurs.
(c) In the event the employment of the Employee is terminated
at the election of the Corporation pursuant to Section (5) (c) hereof, the
Employee shall be paid all accrued , but unpaid, salary, bonus, vacation and
other benefits.
(d) If the Employee is terminated by voluntary resignation by
the Employee, the Employee will be paid all accrued , but unpaid, salary, bonus,
vacation and other benefits earned as of his effective date of termination.
(7) Trade Secrets: The Employee covenants and agrees that he will
communicate to the Corporation, and will not divulge or communicate to any other
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person, partnership, corporation or other entity without the prior written
consent of the Corporation, any trade secrets of the Corporation or confidential
information relating to the business of the Corporation or any one connected
with the Corporation, and that such trade secrets and confidential information
shall not be used by the Employee either on his own behalf or for the benefit of
others or disclosed by the Employee to any one, except to the Corporation,
during or after the term of employment of the Employee under this Employment
Agreement.
(8) Inventions and Patents:
(a) The Employee shall make prompt full disclosure in writing to
the Corporation of all inventions, improvements and discoveries, whether or not
patentable, which the Employee conceives, devises, makes, discovers, develops,
perfects or first reduces to practice, either alone or jointly with others,
during the term of employment of the Employee under this Employment Agreement,
which relate in any way to the fields, products or business of the Corporation,
including development and research, whether during or out of the usual hours of
work or on or off the premises of the Corporation or by use of the facilities of
the Corporation or otherwise and whether at the request or suggestion of the
Corporation or otherwise (all such inventions, improvements and discoveries
being hereinafter called the "Inventions"), including any Inventions, whether or
not patentable, conceived, devised, made, discovered, developed, perfected or
first reduced to practice by the Employee after the employment of the Employee
under this Employment Agreement is terminated if the Inventions were conceived
by the Employee during the term of employment of the Employee under this
Employment Agreement. Any Inventions, whether or not patentable, conceived,
devised, made, discovered, developed, perfected or first reduced to practice by
the Employee within six (6) months of the date of termination of the employment
of the Employee under this Employment Agreement shall be conclusively presumed
to have been conceived during the term of employment of the Employee under this
Employment Agreement.
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(b) The Employee agrees that the Inventions shall be the sole
and exclusive property of the Corporation.
(c) The Employee agrees to assist the Corporation and its
nominees in every reasonable way (entirely at its or their expense) to obtain
for the benefit of the Corporation letters patent for the Inventions and
trademarks, trade names and copyrights relating to the Inventions, and any
renewals, extensions or reissues thereof, in any and all countries, and agrees
to make, execute, acknowledge and deliver, at the request of the Corporation,
all written applications for letters patent, trademarks, trade names and
copyrights relating to the Inventions and any renewals, extensions or reissues
thereof, in any and all countries, and all documents with respect thereto, and
all powers of attorney relating thereto and, without further compensation, to
assign to the Corporation or its nominee all the right, title and interest of
the Employee in and to such applications and to any patents, trademarks, trade
names or copyrights which shall thereafter issue on any such applications, and
to execute, acknowledge and deliver all other documents deemed necessary by the
Corporation to transfer to or vest in the Corporation all of the right, title
and interest of the Employee in and to the Inventions, and to such trademarks,
trade names, patents and copyrights together with exclusive rights to make, use,
license and sell them throughout the world.
(d) The Employee agrees that even though his employment is
terminated under this Employment Agreement he will, at any time after such
termination of employment, carry out and perform all of the agreements of
Subsections (8) (a) and (8) (c) above, and will at any time and at all times
cooperate with the Corporation in the prosecution and/or defense of any
litigation which may arise in connection with the Inventions, provided, however,
that should such services be rendered after termination of employment of the
Employee under this Employment Agreement, the Employee shall be paid reasonable
compensation on a per diem basis.
(e) The Employee agrees to make and maintain adequate and
current written records of all Inventions in the form of notes, sketches,
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drawings, or reports relating thereto, which records shall be and remain the
property of, and available to, the Corporation at all times.
(f) The Employee agrees that he will, upon leaving the employment
of the Corporation, promptly deliver to the Corporation all originals and copies
of disclosures, drawings, prints, letters, notes, and reports either typed,
handwritten or otherwise memorialized, belonging to the Corporation which are in
his possession or under his control and the Employee agrees that he will not
retain or give away or make copies of the originals or copies of any such
disclosures, drawings, prints, letters, notes or reports.
(9) Property of Corporation: All files, records, reports, documents,
drawings, specifications, equipment, and similar items relating to the business
of the Corporation, whether prepared by the Employee or otherwise coming into
his possession, shall remain the exclusive property of the Corporation and shall
not be removed by the Employee from the premises of the Corporation under any
circumstances whatsoever without the prior written consent of the Corporation.
Provided, however, the Employee may remove such files and other items from the
premises of the Corporation if required to do so during the course of his duties
or if required to work at home.
(10) Non-Competition:
(a) During the term of employment of the Employee under this
Employment Agreement, and during a period of one (1) year after termination of
employment of the Employee under this Employment Agreement without regard to the
cause of termination of employment and whether or not such termination of
employment was caused by the Employee or by the Corporation, (i) the Employee
shall not engage, either directly or indirectly, in any manner or capacity, in
any business or activity which is competitive with any business or activity
conducted by the Corporation; (ii) the Employee shall not work for or employ,
directly or indirectly, or cause to be employed by another, any person who was
an employee, officer or agent of the Corporation or of any of its
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subsidiaries at any time during a period of twelve (12) months prior to the
termination of the employment of the Employee under this Employment Agreement
nor shall the Employee form any partnership with, or establish any business
venture in cooperation with, any such person which is competitive with any
business or activity of the Corporation; (iii) the Employee shall not give, sell
or lease any goods or services competitive with the goods or services of the
Corporation or its subsidiaries to any person, partnership, corporation or other
entity who purchased goods or services from the Corporation or its subsidiaries
within one (1) year before the termination of the employment of the Employee
under this Employment Agreement; (iv) the Employee shall not have any financial
interest, or participate as a director, officer, stockholder, partner, employee,
consultant or otherwise, in any corporation, partnership or other entity which
is competitive with any business or activity conducted by the Corporation.
(b) The Corporation and the Employee agree that the services
of the Employee are of a personal, special, unique and extraordinary character,
and cannot be replaced by the Corporation without great difficulty, and that the
violation by the Employee of any of his agreements under this Section (10) would
damage the goodwill of the Corporation and cause the Corporation irreparable
harm which could not reasonably or adequately be compensated in damages in an
action at law, and that the agreements of the Employee under this Section (10)
may be enforced by the Corporation in equity by an injunction or restraining
order in addition to being enforced by the Corporation at law.
(c) In the event that this Section (10) shall be determined by
any court of competent jurisdiction to be unenforceable by reason of its
extending for too long a period of time or over too great a range of activities,
it shall be interpreted to extend only over the maximum period of time or range
of activities as to which it may be enforceable.
(11) Notice: Any and all notices under this Employment Agreement shall
be in writing and, if to the Corporation, shall be duly given if sent to the
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Corporation by registered or certified mail, postage prepaid, return receipt
requested, at the address of the Corporation set forth under its name below or
at such other address as the Corporation may hereafter designate to the Employee
in writing for the purpose, and if to the Employee, shall be duly given if
delivered to the Employee by hand or if sent to the Employee by registered or
certified mail, postage prepaid, return receipt requested, at the address of the
Employee set forth under his name below or at such other address as the Employee
may hereafter designate to the Corporation in writing for the purpose.
(12) Assignment: The rights and obligations of the Corporation under
this Employment Agreement shall inure to the benefit of, and shall be binding
upon, the successors and assigns of the Corporation. The rights and obligations
of the Employee under this Employment Agreement shall inure to the benefit of,
and shall be binding upon, the heirs, executors and legal representatives of the
Employee.
(13) Entire Agreement and Severability:
(a) This Employment Agreement and the MKS offer of employment
letter dated 9/7/2000 (and the documents referenced herein) supersede any and
all other agreements, either oral or in writing, between the parties hereto with
respect to the employment of the Employee by the Corporation and contain all of
the covenants and agreements between the parties with respect to such
employment. Each party to this Employment Agreement acknowledges that no
representations, inducements, promises or agreements, oral or otherwise, have
been made by any party, or any one acting on behalf of any party, which are not
embodied herein, and that no other agreement, statement or promise not contained
in this Employment Agreement or referenced herein, or as amended, shall be valid
and binding. Any modification of this Employment Agreement will be effective
only if it is in writing signed by both parties to this Employment Agreement.
(b) If any provision in this Employment Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall nevertheless continue in full force and effect
without being impaired or invalidated in any way.
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(c) All pronouns used herein shall include the masculine,
feminine, and neuter gender as the context requires.
(14) Governing Law: This Employment Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of The Commonwealth
of Massachusetts without reference to conflict of laws principles.
IN WITNESS WHEREOF, the parties hereto have executed, in the Commonwealth of
Massachusetts, this Employment Agreement as a sealed instrument, all as of the
day, month and year first written above.
MKS INSTRUMENTS, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx, President & COO
0 Xxxxxxxx Xxxx
Xxxxxxx, XX 00000
/s/ F. Xxxxxx XxXxxx
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F. Xxxxxx XxXxxx
Address:
00 Xxxxxxxx Xxxxxxx
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Xxxxxxxx, XX 00000
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