EXHIBIT 10.16
EMPLOYMENT AGREEMENT
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AGREEMENT (this "Agreement"), dated as of May 1, 1998, between LOEWS
CINEPLEX ENTERTAINMENT CORPORATION, a Delaware corporation formerly known as LTM
Holdings, Inc., which maintains offices at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000 (the "Company"), and Xxxxxx Xxxx ("Employee"), residing at 0 Xxx Xxxxx
Xxxxxx Xxxx, Xxxxx Xxxxxx Xxxxx, Xxx Xxxxxx 00000.
WHEREAS, Employee is presently a party to an employment agreement, dated
October 21, 1995 (the "Former Agreement") with Sony Theatre Management Corp., a
wholly owned subsidiary of the Company; and
WHEREAS, the Company desires to directly enlist the services and employment
of Employee and Employee is willing to enter such relationship directly with the
Company, on the terms and conditions set forth herein.
NOW, THEREFORE, the parties hereby agree as follows:
1. TERM OF EMPLOYMENT.
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(a) The Company hereby employs Employee, and Employee hereby accepts
employment, on the terms and subject to the conditions hereinafter set forth,
for a term (the "Employment Period") commencing on May 1, 1998, and continuing
until April 30, 2001 or, if the term of this Agreement is extended pursuant to
Section 1(b) hereof, until April 30, 2003 (the "Expiration Date").
(b) The Company shall have the right, exercisable upon written notice
given to Employee on or before January 31, 2001, to extend the Employment
Period, all in accordance with and subject to the terms and conditions hereof,
for an additional two-year period commencing on May 1, 2001 and continuing until
April 30, 2003.
2. DUTIES AND PRIVILEGES. During the Employment Period, Employee shall
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serve as President, U.S. Operations, of the Company and be responsible to and
report to the Chief Executive Officer of the Company (the "CEO") or to such
other executive as may be designated by the CEO (the person to whom Employee
reports being hereafter referred to as the "Supervisory Officer"). During the
Employment Period, Employee shall have such authority and perform such duties
which are consistent with Employee's title and position as President, U.S.
Operations, of the Company as the Supervisory Officer, may from time to time
prescribe; devote Employee's entire business time, ability and energy
exclusively to the performance of Employee's duties hereunder (except that
Employee may participate in charitable and industry activities that do not
interfere with his duties hereunder); and use Employee's best efforts to advance
the
interests and businesses of the Company, and its divisions and subsidiaries.
Employee's principal office shall be located at the Company's offices in the New
York metropolitan area.
3. COMPENSATION.
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(a) The Company shall pay to Employee a base salary at the rate of
$450,000 per year during the Employment Period; provided, however, that (i)
effective as of each May 1 during the Employment Period (commencing with May 1,
1999), the annual rate of salary payable to Employee pursuant to this Section
3(a) shall be increased to reflect the increase (if any) in the cost of living
during the previous calendar year based upon the Consumer Price Index for the
New York-New Jersey Metropolitan area, as reported by the Bureau of Labor
Statistics of the United States Department of Labor (in any event, such increase
shall not be less than 3%), and (ii) effective as of May 1, 2001, if the Company
exercises the Extension Option pursuant to Section 1(b) hereof, the annual base
salary then payable to Employee pursuant to this Section 3(a) shall be increased
by $50,000.
(b) During the Employment Period, Employee shall be eligible to
participate in all then operative employee benefit plans of the Company which
are applicable generally to the Company's senior executives ("Employee Benefit
Plans"), subject to the respective terms and conditions of such Employee Benefit
Plans. Notwithstanding the foregoing, Employee shall be entitled to no less than
four weeks paid vacation each year during the Employment Period. Nothing
contained in this Agreement shall obligate the Company to adopt or implement any
Employee Benefit Plan, or prevent or limit the Company from making any blanket
amendments, changes or modifications of the eligibility requirements or any
other provisions of, or terminating, any Employee Benefit Plan at any time
(whether during or after the Employment Period), and Employee's participation in
or entitlement under any such Employee Benefit Plan shall at all times be
subject in all respects thereto. To the extent permitted by law and provided for
by the applicable Employee Benefit Plan, Employee shall be entitled to prior
service credit for his years of service with any group of which the Company (or
its predecessor) was a member in respect of any medical or retirement Employee
Benefit Plan for which years of service are generally applicable.
(c) During the Employment Period, Employee shall be eligible to
receive an annual bonus (the "Annual Bonus"), the amount of which will be
targeted at $200,000. The amount and payment of the Annual Bonus shall be based
on the attainment of specified performance goals to be developed by the
Company's Board of Directors each year.
(d) To facilitate Employee's performance of Employee's duties
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hereunder, the Company shall make available to Employee, during the Employment
Period, either a leased automobile or car allowance, each in accordance with the
Company's automobile policy as from time to time in effect. In the event
Employee elects to lease an automobile, the Company shall also pay for and
provide parking for Employee near the Company's New York office. In the event
Employee elects a car allowance, the Company shall not pay for or provide any
parking for Employee.
4. EXPIRATION OF TERM AND TERMINATION.
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(a) Employee's employment by the Company and this Agreement shall
automatically expire and terminate on the Expiration Date unless sooner
terminated pursuant to the provisions of this Section 4.
(b) Employee's employment by the Company and this Agreement shall
automatically terminate upon Employee's death.
(c) The Company shall have the right and option, exercisable by
giving written notice to Employee, to terminate Employee's employment by the
Company and this Agreement at any time after Employee has been unable to perform
the services or duties required of Employee in connection with Employee's
employment by the Company as a result of physical or mental disability (or
disabilities) which has (or have) continued for a period of twelve (12)
consecutive weeks, or for a period of sixteen (16) weeks in the aggregate,
during any twelve (12) month period.
(d) The Company shall have the right and option, exercisable by
giving written notice to Employee, to terminate Employee's employment by the
Company and this Agreement at any time after the occurrence of any of the
following events or contingencies (any such termination being deemed to be a
termination "for cause"):
(i) Employee materially breaches, materially repudiates or
otherwise materially fails to comply with or perform any of the terms of this
Agreement, any duties of Employee in connection with Employee's employment by
the Company or any of the Company's policies or procedures, or deliberately
interferes with the material compliance by any other employee of the Company
with any of the foregoing and such action (if correctable) is not materially
corrected within 30 days after notice from the Company;
(ii) The conviction by Employee of a felony or the pleading by
Employee of no contest (or similar plea) to any felony (other than a crime for
which vicarious liability is imposed upon Employee solely by reason of
Employee's position with the Company, and not by reason of Employee's conduct);
(iii) Any act or omission by Employee constituting fraud, gross
negligence or willful misconduct in connection with Employee's employment by the
Company and, if correctable, is not corrected within 30 days after notice from
the
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Company; or
(iv) Any other act, omission, event or condition constituting
cause for the discharge of an employee under the laws of New York which, if
correctable, is not corrected within 30 days after notice from the Company.
(e) The Company shall have no obligation to renew or extend the
Employment Period. Neither (i) the expiration of the Employment Period, nor (ii)
the failure or refusal of the Company to renew or extend the Employment Period,
this Agreement, or Employee's employment by the Company upon the Expiration
Date, nor (iii) the termination of this Agreement by the Company pursuant to any
provision of this Section 4 (except Section 4(g)), shall be deemed to constitute
a termination of Employee's employment by the Company "without cause" for the
purpose of triggering any rights of or causes of action by Employee.
(f) If this Agreement, the Employment Period or Employee's employment
by the Company is terminated or expires pursuant to any provision of this
Section 4 (other than Section 4(g)), or is terminated by Employee by reason
other than Employer's material breach of this Agreement, Employee's right to
receive salary or other compensation from the Company and all other rights and
entitlements of Employee pursuant to this Agreement or as an employee of the
Company shall forthwith cease and terminate, and the Company shall have no
liability or obligation whatsoever to Employee, except that:
(i) The Company shall be obligated to pay to Employee (x) not
later than the effective date of such termination all unpaid salary, car
allowance (if any), vacation and reimbursable expenses which shall have accrued
as of the effective date of such termination and (y) as soon as practicable
after the end of the fiscal year in which the termination occurs, a pro rata
portion of the Annual Bonus for the portion of such fiscal year through the
effective date of such termination; and
(ii) The terms and conditions of applicable Employee Benefit
Plans, if any, shall control Employee's entitlement, if any, to receive benefits
thereunder.
(g) The Company shall have the unilateral right, at any time, without
notice, in the Company's sole and absolute discretion, to terminate Employee's
employment by the Company, without cause, and for any reason or for no reason
(the Company's "Termination Rights"). If the Company materially reduces the
duties or responsibilities of the Employee hereunder, or otherwise materially
breaches this Agreement, such action shall be deemed an exercise by the Company
of its Termination Rights. The Company's Termination Rights are not limited or
restricted by, and shall supersede, any policy of the Company requiring or
favoring continued employment of its employees during satisfactory performance,
any seniority system or any procedure governing the manner in which the
Company's discretion is to be exercised. No exercise
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by the Company of its Termination Rights shall, under any circumstances, be
deemed to constitute (i) a breach by the Company of any term of this Agreement,
express or implied (including without limitation a breach of any implied
covenant of good faith and fair dealing), (ii) a wrongful discharge of Employee
or a wrongful termination of Employee's employment by the Company, (iii) a
wrongful deprivation by the Company of Employee's corporate office (or
authority, opportunities or other benefits relating thereto) or (iv) the breach
by the Company of any other duty or obligation, express or implied, which the
Company may owe to Employee pursuant to any principle or provision of law
(whether contract or tort); provided, however, that notwithstanding the
foregoing, a breach by the Company of its payment obligations pursuant to this
Section 4(g) shall be deemed to be a breach of this Agreement. If the Company
elects to terminate Employee's employment or is deemed to exercise its
Termination Rights pursuant to this Section 4(g) prior to the Expiration Date,
the Company shall have no obligation or liability to Employee pursuant to this
Agreement, or otherwise, except to pay to Employee until the Expiration Date (x)
the salary and benefits (in each case as if this Agreement had not been
terminated) as provided in Sections 3(a) and (b) hereof (excluding car allowance
or parking benefits), and (y) an annual bonus amount equal to the target bonus
for the year in which such termination occurs, or if no such target has been set
for the year, the most recent Annual Bonus actually paid or payable to the
Employee (pro-rated for the portion of a fiscal year ending on the Expiration
Date); provided, however, that in no event will the aggregate amount payable
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pursuant to this clause (y) be less than the amount that would be payable
pursuant to Section 3(d), if Employee's date of termination was immediately
prior to the Expiration Date. If the Company elects to terminate Employee's
employment or is deemed to exercise its Termination Rights pursuant to this
Section 4(g) prior to the Expiration Date, Employee shall have no obligation to
mitigate. However, it is agreed that if Employee receives employment income
(whether direct or indirect salary, compensation or otherwise) from subsequent
employment (including self-employment) after such termination and on or before
the Expiration Date, such employment income shall be set off against any
payments to be made to Employee by the Company in connection with its exercise
or deemed exercise of its Termination Rights.
(h) Immediately upon any termination of Employee's employment
hereunder or of this Agreement (whether or not pursuant to this Section 4),
Employee shall return to the Company all property of the Company heretofore
provided to Employee by the Company, or otherwise in the custody, possession or
control of Employee (including, without limitation, the "Confidential Materials"
described in Paragraph 6(b) of Exhibit A attached hereto). Notwithstanding any
provision of this Agreement to the contrary, no termination of this Agreement or
of Employee's employment for any reason whatsoever shall in any manner operate
to terminate, limit or otherwise affect the Company's ownership of any of the
rights, properties or privileges granted to the Company hereunder.
5. STANDARD TERMS. Attached as Exhibit A hereto and deemed a part
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hereof are the Company's Standard Terms and Conditions of Employment Agreement,
all of which terms are binding on the parties hereto and incorporated herein.
For convenience, provisions of this Agreement shall be referred to as "Sections"
and provisions of the Standard Terms shall be referred as "Paragraphs". In the
case of any conflict between the terms of this Agreement and the terms of
Exhibit A hereto, the terms of this Agreement shall govern.
6. SUPERSEDING AGREEMENT. This Agreement, including Exhibit A hereto,
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shall constitute the full and entire understanding of the parties hereto with
respect to the subject matter hereof and shall supersede any prior agreements,
written or oral, between Employee and the Company and/or its affiliates with
respect thereto, including the Former Agreement, which shall be null and void.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement or
caused it to be executed on their behalf as of the date first above written.
/s/ XXXXXX XXXX
___________________________
Xxxxxx Xxxx
LOEWS CINEPLEX ENTERTAINMENT CORPORATION
By: /s/ XXXXXXXX X. XXXXX
__________________________________
Name: Xxxxxxxx X. Xxxxx
Title: President and Chief Executive Officer
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EXHIBIT A
STANDARD TERMS AND CONDITIONS
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OF EMPLOYMENT AGREEMENT
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1. Definitions. All capitalized terms used herein shall have the meanings
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ascribed to them in the Agreement attached hereto. The following words, terms
and phrases (and variations thereof) used herein shall have the following
meanings:
(a) An "Affiliate," of a party means a Person which, directly or
indirectly, owns or controls, is owned or controlled by, or is under common
ownership or control with, such party.
(b) "Intellectual Property" means any and all intellectual, artistic,
literary, dramatic or musical rights, works or other materials of any kind or
nature (whether or not entitled to protection under applicable copyright laws,
or reduced to or embodied in any medium or tangible form), including without
limitation all copyrights, patents, trademarks, service marks, trade secrets,
contract rights, titles, characters, plots, themes, dialogue, stories, scripts,
treatments, outlines, submissions, ideas, concepts, packages, compositions,
artwork and logos, and all audio, visual or audio-visual works of every kind and
in every stage of development, production and completion, and all rights to
distribute, advertise, promote, exhibit or otherwise exploit any of the
foregoing by any means, media or processes now known or hereafter devised.
(c) "Media Business" means all Persons engaging in any of the
following: (i) the creation, production, distribution, exhibition or other
exploitation of theatrical motion pictures, television programs, sound
recordings or other visual, audio or audio-visual works or recordings of any
kind; (ii) television (including pay, free, over-the-air, cable and satellite)
or radio broadcasting; (iii) book, newspaper or periodical publishing; (iv)
music publishing; (v) "merchandising" (as that term is generally understood in
the entertainment industry); or (vi) advertising.
(d) "Person" means any individual, corporation, trust, estate,
partnership, joint venture, company, association, league, group, governmental
agency or other entity of any kind or nature.
2. Compensation.
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(a) Employee's salary shall be payable in equal installments (not
less frequently than monthly) in accordance with the Company's customary payroll
practices. No additional compensation shall be payable to Employee by reason of
the number of hours worked or by reason of any hours worked on Saturdays,
Sundays, holidays or
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otherwise. All compensation payable to Employee hereunder (whether in the form
of salary, benefits or otherwise) shall be subject to all applicable laws,
statutes, governmental regulations or orders, the terms of all applicable
Employee Benefit Plans and the terms of all agreements between or binding upon
the Company and Employee requiring the deduction or withholding of any amounts
from such payments, and the Company shall have the right to make such deductions
and withholdings in accordance with the Company's interpretation thereof in the
Company's sole judgment.
(b) Subject to Section 3(b) of the Agreement, Employee shall be
eligible to participate in fringe benefits, if any, maintained by the Company
for employees generally on the same basis as comparable employees of the
Company.
(c) Subject to the requirements of Employee's position and corporate
office, Employee shall be entitled to annual vacations in accordance with the
Company's vacation policy in effect from time to time.
(d) The Company recognizes that, in connection with Employee's
performance of Employee's duties and obligations hereunder, Employee will incur
certain ordinary and necessary expenses of a business character. The Company
shall pay Employee for such business expenses on the presentation of itemized
statements of such expenses, provided their extent and nature are approved in
accordance with the policies and procedures of the Company.
3. Right to Insure. The Company shall have the right to secure, in its
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own name or otherwise and at its own expense, life, health, accident or other
insurance covering or otherwise insuring Employee, and Employee shall have no
right, title or interest in or to any such insurance or any of the proceeds or
benefits thereof. Employee shall fully assist and cooperate with the Company in
procuring any such insurance, including without limitation by submitting to such
examinations, and by signing such applications and other instruments, as may
reasonably be required by any insurance carrier to which application is made by
the Company for any such insurance.
4. Employment Exclusive. Employee shall not perform services for any
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Person other than the Company during the Employment Period without the prior
written consent of the Company and will not during the Employment Period engage
in any activity which would interfere with the performance of Employee's
services hereunder, or become financially interested in or associated with,
directly or indirectly, any Media Business.
5. Interest in Other Corporations. Notwithstanding anything to the
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contrary contained in Paragraph 4 hereof, Employee may own up to one percent
(1%) of any class of any Person's outstanding securities which are listed on any
national securities exchange, registered under Section 12(g) of the Securities
Exchange Act of 1934 or
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otherwise publicly traded, provided that the holdings of Employee of any such
security of a Media Business or any Person which does business with the Company
or its Affiliates do not represent more than 10% of the aggregate of Employee's
investment portfolio at any time.
6. Ownership of Proceeds of Employment; Confidentiality of Information;
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Etc.
---
(a) The Company shall be the sole and exclusive owner throughout the
universe in perpetuity of all of the results and proceeds of Employee's
services, work and labor during the Employment Period in connection with
Employee's employment by the Company, including without limitation all
Intellectual Property which Employee may develop, create, write or otherwise
produce during the Employment Period, free and clear of any and all claims,
liens or encumbrances. All results and proceeds of Employee's services, work and
labor during the Employment Period shall be deemed to be works-made-for-hire for
the Company within the meaning of the copyright laws of the United States and
the Company shall be deemed to be the sole author thereof in all territories and
for all purposes.
(b) All information, documents, notes, memoranda and Intellectual
Property of any kind received, compiled, produced or otherwise made available to
Employee during or in connection with Employee's employment by the Company
relating in any way to the business of the Company or of any of its Affiliates
and which has not been made available or confirmed to the public by the Company
("Confidential Materials") shall be the sole and exclusive property of the
Company and shall in perpetuity (both during and after Employee's employment by
the Company) be maintained in utmost confidence by Employee and held by Employee
in trust for the benefit of the Company. Employee shall not during the
Employment Period or at any time thereafter directly or indirectly release or
disclose to any other Person any Confidential Materials, except with the prior
written consent of the Company and in furtherance of the Company's business or
as required by law.
(c) Employee shall not, and shall not authorize or assist any other
Person to, directly or indirectly, at any time during the Employment Period or
for a period of twelve (12) months thereafter, without the Company's consent,
solicit, entice, persuade or induce any Person to terminate or refrain from
extending or renewing (on the same or different terms) such Person's employment
by, or contractual or business relationship with, the Company or any of its
Affiliates.
(d) The Company shall have the right to use the Employee's name,
approved biography (such approval not to be unreasonably withheld), and likeness
in connection with its business, including in advertising its products and
services, and may
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grant this right to others, but not for use as an endorsement.
7. Warranties and Covenants. Employee warrants, represents and covenants
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to the Company as follows:
(a) Employee is free to enter into this Agreement and to perform the
services contemplated hereunder.
(b) Employee is not currently (and will not, to the best knowledge
and ability of Employee, at any time during the Employment Period be) subject to
any agreement, understanding, obligation, claim, litigation, condition or
disability which could adversely affect Employee's performance of any of
Employee's obligations hereunder or the Company's complete ownership and
enjoyment of all of the rights, powers and privileges granted to the Company
hereunder.
(c) No Intellectual Property written, composed, created or submitted
by Employee at any time during Employee's employment by the Company shall, to
the best of Employee's knowledge, violate the rights of privacy or publicity,
constitute a libel or slander or infringe upon the copyright, literary,
personal, private, civil, property or other rights of any Person.
8. Employment after Term. Employee's employment by the Company may be
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continued beyond the Expiration Date by the express consent of both parties
(which consent each party shall have the right to grant or withhold in its sole
and absolute discretion). In the event of any such continuation of Employee's
employment by the Company beyond the Expiration Date, the relationship between
the Company and Employee shall be that of employment-at-will which may be
terminated by either the Company or Employee at any time upon ten (10) days'
written notice, with or without cause, for any reason or for no reason, and
without liability of any nature. Employee's employment by the Company, if any,
after the Expiration Date shall be governed by all of the terms and conditions
of this Agreement not inconsistent with the at-will nature of such employment.
9. Immigration. In accordance with the Immigration Reform and Control Act
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of 1986 and the regulations adopted thereunder (8 CFR, Parts 109 and 274a), the
obligations of the Company under this Agreement are subject to and conditioned
upon Employee verifying and delivering to the Company, within three (3) business
days of Employee's first date of employment, the Form I-9 prescribed by the
Immigration and Naturalization Service, and presenting to the officer of the
Company designated therefor the original documentation required under such
regulations to establish (i) the identity of Employee and (ii) that Employee is
lawfully authorized to work in the United States. If Employee is unable to
provide the documents required within the aforesaid three (3) business-day
period, Employee must (i) present to such designated officer within said
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three (3) business days a receipt for the application for the documents
prescribed and (ii) the original documents required within twenty-one (21) days
of Employee's first date of employment. If Employee fails to verify and deliver
the Form I-9 and present the required original documents within the stated time
period, this Agreement and Employee's employment hereunder shall cease and
terminate as if this Agreement had never been entered into and neither party
shall have any further right, duty or obligation to the other under this
Agreement.
10. Equitable Relief. Employee acknowledges that the services to be
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rendered by Employee under this Agreement, and the rights and privileges granted
by Employee to the Company hereunder, are of a special, unique, extraordinary
and intellectual character which gives them a peculiar and special value, the
loss of which cannot be reasonably or adequately compensated in damages in an
action at law, and a breach by Employee of any of the provisions hereof will
cause the Company great and irreparable injury. Employee acknowledges that the
Company shall, therefore, be entitled, in addition to any other remedies which
it may have under this Agreement or at law, to receive injunctive and other
equitable relief (including without limitation specific performance) to enforce
any of the rights and privileges of the Company or any of the covenants or
obligations of Employee hereunder. Nothing contained herein, and no exercise by
the Company of any right or remedy, shall be construed as a waiver by the
Company of any other rights or remedies which the Company may have. In the event
that any court or tribunal shall at any time hereafter hold any covenants or
restrictions contained in this Agreement to be unenforceable or unreasonable as
to the scope, territory or period of time specified therein, such court shall
have the power, and is specifically requested by Employee and the Company, to
declare or determine the scope, territory or period of time which it deems to be
reasonable or enforceable and to enforce the restrictions contained therein to
such extent.
11. Governing Law, Legal Proceedings and Remedies.
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(a) The substantive laws (as distinguished from the choice of law
rules) of the State of New York shall govern (i) the validity and interpretation
of this Agreement, (ii) the performance by the parties hereto of their
respective duties and obligations hereunder and (iii) all other causes of action
(whether sounding in contract or in tort) arising out of or relating in any
fashion to Employee's employment by the Company or the termination of such
employment.
(b) Any and all actions, suits or legal proceedings of any nature
(whether sounding in contract or in tort) arising out of or relating to this
Agreement, to the employment of Employee by the Company or to the termination of
such employment shall be initiated and maintained only in a state or federal
court located in the City and County of New York, State of New York, which shall
be the exclusive forum for, and
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shall have sole and exclusive jurisdiction over the subject matter of, all such
proceedings. The Company and Employee each hereby submit and subject themselves
irrevocably to the personal jurisdiction of such New York State and federal
courts.
12. Notices. All notices, requests, demands or other communications in
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connection with this Agreement shall be in writing and shall be deemed to have
been duly given if delivered in person, by telegram, by telecopier to the
applicable telecopier number listed below, or by United States mail, postage
prepaid, certified or registered, with return receipt requested, or otherwise
actually delivered:
If to Employee, to him at the address listed on page 1 of this Agreement.
If to the Company, to it at:
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Chief Executive Officer
with a copy at the same address,
Attention: General Counsel
or such other addresses as Employee or the Company shall have designated by
written notice to the other party hereto. Any such notice, demand or other
communication shall be deemed to have been given on the date actually delivered
(or, in the case of telecopier, on the date actually sent by telecopier) or upon
the expiration of three (3) days after the date mailed, as the case may be.
13. Service as Expert Witness. Employee acknowledges that during the
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Employment Period Employee will have access to confidential and proprietary
information concerning the Company, including, without limitation, access to
various proprietary and confidential contracts and financial data. Employee
agrees that Employee shall not at any time either during or after the term of
this Agreement serve as an "expert witness" or in any similar capacity in any
litigation or other proceeding to which the Company or any of its Affiliates or
subsidiaries is a party without the prior written consent of the Company or such
affiliate or subsidiary, as the case may be.
14. Miscellaneous.
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(a) This Agreement and the exhibits hereto contain a complete
statement of all of the arrangements between the parties with respect to
Employee's employment by the Company, supersede all existing agreements between
them concerning Employee's
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employment and cannot be changed or terminated orally. No provision of this
Agreement shall be interpreted against any party because that party or its legal
representative drafted the provision. There are no warranties, representations
or covenants, oral or written, express or implied, except as expressly set forth
herein. Employee acknowledges that Employee does not rely and has not relied
upon any representation or statement made by the Company or any of its
representatives relating to the subject matter of this Agreement except as set
forth herein.
(b) If any provision of this Agreement or any portion thereof is
declared by any court of competent jurisdiction to be invalid, illegal or
incapable of being enforced, the remainder of such provision, and all of the
remaining provisions of this Agreement, shall continue in full force and effect
and no provision shall be deemed dependent on any other provision unless so
expressed herein.
(c) The failure of a party to insist on strict adherence to any term
of this Agreement shall not be considered a waiver of, or deprive that party of
the right thereafter to insist on strict adherence to, that term or any other
term of this Agreement.
(d) The headings in this Agreement (including the exhibits hereto)
are solely for convenience of reference and shall not affect its interpretation.
(e) The relationship between Employee and the Company is exclusively
that of employer and employee, and the Company's obligations to Employee
hereunder are exclusively contractual in nature.
(f) Employee shall, at the request of the Company, execute and
deliver to the Company all such documents as the Company may from time to time
deem necessary or desirable to evidence, protect, enforce or defend its right,
title and interest in or to any Confidential Materials, Intellectual Property or
other items described in Paragraph 6 hereof. If Employee shall fail or refuse to
execute or deliver to the Company any such document upon request, the Company
shall have, and is granted, the power and authority to execute the same in
Employee's name, as Employee's attorney-in-fact, which power is coupled with an
interest and irrevocable.
(g) The Company may assign this Agreement, Employee's services
hereunder or any of the Company's interests herein (i) to any Person which is a
party to a merger or consolidation with the Company, (ii) to any Affiliate of
the Company or (iii) to any Person acquiring substantially all of the assets of
the Company or the unit of the Company for which Employee is rendering services;
and, provided that any such assignee assumes the Company's obligations under
this Agreement, the Company shall thereupon be relieved of any and all liability
hereunder. Employee shall not have the right to assign this Agreement or to
delegate any duties imposed upon Employee under this Agreement without the
written consent of the Company, and any such purported assignment or delegation
shall be void ab initio.
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