EXHIBIT 10.17
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT ("Agreement"), dated as of March 30, 1999, between
SYSTEMS INTEGRATION SOFTWARE, INC., a Delaware corporation (the "Company"), and
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Xxxx Xxxxxx, an individual residing at 0000 Xxxxxx Xx., Xxxxxxxx Xxxxxxx, XX
00000 (the "Employee").
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W I T N E S S E T H:
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WHEREAS, the Company is a wholly owned subsidiary of SM&A Corporation, a
California corporation (the "Parent");
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WHEREAS, the Parent, the Company, SIS Acquisition, Inc., a California
corporation ("SIS"), and certain of the Company's shareholders have entered into
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an Agreement and Plan of Reorganization and Merger, dated as of March 30, 1999
(the "Merger Agreement"), pursuant to which the Company will merge with and into
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SIS, with SIS being the surviving entity to continue to carry on the Company's
existing business (the "Business") and to assume the obligations of this
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Agreement;
WHEREAS, the Employee is currently employed by the Company as its
President, CEO and Treasurer and, as such, possesses unique and valuable
technical, financial and other knowledge, experience and ability;
WHEREAS, the Company desires to retain the services of the Employee, has
offered to engage him on the terms and conditions hereinafter set forth and
would not have otherwise entered into the Merger Agreement without the Employee
agreeing to be bound hereby;
WHEREAS, the Employee is willing to accept such employment upon the terms
and conditions hereinafter set forth; and
WHEREAS, it is a condition to the closing of the transactions contemplated
by the Merger Agreement that the Company and Employee enter into this Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the Company and the Employee agree as follows (capitalized
terms used in this Agreement not otherwise defined herein shall have the
meanings given to them in the Merger Agreement):
Section 1. Term of Employment.
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Subject to the provisions set forth in Sections 2 and 7 hereof, the Company
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hereby employs the Employee as its VP and GM of ITSG - CS and the Employee
agrees to be employed by the Company, on the terms and conditions contained
herein, for a period commencing on the date hereof and terminating on the second
anniversary of the date hereof (the "Employment Term").
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Section 2. Duties.
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(a) Office. The Employee is hereby appointed to serve as VP and GM of
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ITSG-CS of the Company, and shall have responsibility for managing the Company
and performing such services and duties for the Company as now or hereafter
existing, as are customarily performed by an employee in that position.
The Employee shall report directly to X. Xxxxx (or any successor in such
office), and shall have responsibility for the management of the Company's
Business, operations and affairs. All subordinate officers and employees shall
report to the Employee or his designee.
It is understood that the respective Boards of Directors of the Company and
of the Parent will have general supervisory authority over the financial
condition and operating activities of the Company, budgets, long-term plans,
acquisitions and divestitures and other strategic alternatives and will seek
input from the Employee as and when needed.
(b) Full-Time Position. The Employee shall devote his entire time,
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attention, abilities, energy and skill during regular business hours to carrying
out his duties hereunder, and shall faithfully, efficiently and diligently
perform such duties to promote the business and affairs of the Company and its
subsidiaries and affiliated companies. During the Employment Term, the
Employee's services shall be exclusive to the Company. The Employee shall not
directly or indirectly engage in any activity competitive with or adverse to the
Company's business or welfare or services of a business, professional or
commercial nature to any other person or firm, whether for compensation or
otherwise.
Section 3. Compensation.
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(a) Base Salary. For services rendered by the Employee under this
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Agreement, the Company shall pay the Employee or cause to be paid to the
Employee during the Employment Term a base salary (the "Base Salary") at a rate
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equal to $100,000 per year. The Base Salary shall be earned and shall be payable
at such intervals and otherwise in such manner as is consistent with the normal
payroll practices of the Company for remuneration of its employees. The Company
shall review the Base Salary at least annually to determine whether an increase
is warranted in accordance with the Company's normal policies and procedures.
(b) Withholding. The Company shall be entitled to withhold amounts from
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any compensation or other form of remuneration or benefit payable by the Company
to the Employee that the Company reasonably believes it is required to withhold
under any federal, state, local or foreign tax law to which the Company is
subject.
Section 4. Other Benefits.
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During the Employment Term, except as may be otherwise provided herein, the
Employee shall be entitled to medical benefits, holiday, vacation or similar
rights and such other benefits, perquisites and privileges as are from time to
time provided by the Company, the Parent and their
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subsidiaries and affiliated companies to their full-time employees in comparable
positions, as the same may change from time to time and communicated to the
Employee.
Section 5. Expenses.
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The Company shall, during the Employment Term, reimburse the Employee for
all reasonable documented business expenses actually and necessarily incurred by
him in the course of, and in connection with, his employment by the Company.
The Employee shall keep detailed and accurate records of expenses incurred in
connection with his employment by the Company, and reimbursement therefor shall
be made in accordance with policies and procedures established by the Company's
management from time to time.
Section 6. Representations and Covenants of the Employee.
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(a) The Employee represents and warrants to the Company that he is not a
party to or bound by any presently effective agreement or contract, whether of
employment or otherwise, with any third person or entity that would in any way
restrict or prohibit the Employee from undertaking or performing his obligations
on the terms and conditions set forth in this Agreement.
(b) The Employee covenants with the Company that he shall not, during the
Employment Term, enter into any such agreement, contract or understanding
described in Section 6(a) above so as to cause the Company, or any of its
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subsidiaries or affiliated companies, to be liable in connection therewith.
Section 7. Termination.
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The Employment Term shall terminate upon any of the following occurrences:
(a) By Reason of Death. If the Employee shall die during the Employment
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Term, this Agreement shall terminate except that the Employee's estate shall be
entitled to receive the Base Salary provided in Section 3(a) and any pro rata
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amount of any earned bonus, each to the last day of the month in which his death
occurs. Such termination shall not affect any vested rights which the Employee
may have at the time of his death pursuant to any insurance or other death
benefit plans or arrangements of the Company or any affiliate of the Company.
(b) Termination For Cause; Resignation Without Good Reason.
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(i) Payments. If, prior to the expiration of the Employment Term,
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the Employee's employment is terminated by the Company for Cause, as
defined in Section 7(c) hereof, or if the Employee resigns from his
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employment hereunder other than for Good Reason, as defined in Section 7(e)
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hereof, the Employee shall be entitled to payment of his Base Salary
accrued through and including the date of such termination or resignation,
plus any other accrued but unpaid benefits or compensation, but shall not
be entitled to any other compensation or benefits under this Agreement.
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(ii) Notice of Termination. Termination of the Employee's employment
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for Cause shall be communicated by delivery to the Employee of a copy of a
resolution duly adopted by the Company's Board of Directors (a "Notice of
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Termination"). The Notice of Termination shall specify the effective date
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of the termination of the Employee's employment.
(iii) Date of Termination. The date of a termination for Cause shall
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be the date specified in the Notice of Termination provided for in this
Section 7(b). The date of a resignation by the Employee without Good Reason
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shall be the date specified in a written notice of resignation from the
Employee to the Company. The Employee shall provide at least sixty (60)
days' advance written notice of the date of his resignation without Good
Reason.
(c) Definition of Cause. For the purposes of this Agreement, "Cause"
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shall mean (i) the failure or inability of the Employee to cure, within thirty
(30) days of receipt of written notice on behalf of the Company's Board of
Directors, the Employee's failure to substantially perform the primary duties of
his employment hereunder; (ii) the conviction of the Employee of a felony under
state or federal criminal laws; (iii) the commission by the Employee of any act
of fraud or willful misconduct against the Company or any of its subsidiaries or
affiliated companies; (iv) the commission by the Employee of any act of gross
negligence or malfeasance, resulting in an adverse impact upon the Company, its
reputation or its business operations; or (v) the violation by the Employee of
his covenants contained in Sections 6 and 8 hereof.
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(d) Termination Upon Disability. If, during the Employment Term, the
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Employee shall become incapable of fulfilling his obligations hereunder because
of injury or physical or mental illness, and such incapacity shall exist or
reasonably may be expected to continue to exist, upon the competent medical
opinion of a doctor chosen by the Company and Employee, for a period exceeding
sixty (60) consecutive days or ninety (90) nonconsecutive days within a six-
month period, the Company shall nevertheless continue to pay the Employee his
Base Salary through the last day of the sixtieth (60th) day of disability or, if
applicable, the date upon which the shorter periods of disability shall have
aggregated more than ninety (90) days within the six-month period (in either
event, the "Disability Date") plus any other benefits or compensation accrued
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through, but unpaid as of, the Disability Date; provided, however, that nothing
in this Agreement shall operate to deprive the Employee of any rights he may
have pursuant to the Family and Medical Leave Act, the Americans with
Disabilities Act or any analogous state statutes. The Company may, at any time
on or after the Disability Date, terminate this Agreement and all further rights
and obligations of the parties under this Agreement, other than the obligations
of the Employee under Section 8 hereof, which obligations shall continue in
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effect for the periods therein stated.
(e) Termination Without Cause; Resignation for Good Reason.
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(i) Liquidated Damages Paid by Company. If, prior to the expiration
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of the Employment Term, the Employee's employment is terminated by the
Company without Cause, or if the Employee resigns from his employment
hereunder for Good Reason, the Company shall pay to the Employee his Base
Salary accrued up to and including the date of such termination or
resignation plus any other accrued but unpaid benefits or compensation.
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In addition, for the period commencing immediately following the date
of such termination or resignation and ending six months thereafter (the
"Offset Period"), the Company shall pay to the Employee as liquidated
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damages (the "Company Paid Liquidated Damages") his Base Salary, as in
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effect on the date of such termination.
The Company Paid Liquidated Damages shall be payable in accordance
with the Company's then effective payroll practices and at such intervals
as Base Salary would have been paid if the Employee had remained in the
active service of the Company; provided, however, that payments of Base
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Salary during the Offset Period shall be made not less frequently than
monthly.
(ii) Other Benefits. In the event of the Employee's termination or
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resignation as provided in this Section 7(e), the Employee shall continue
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to participate on the same terms and conditions as in effect immediately
prior to such termination or resignation in each pension, welfare, life
insurance, health, disability and other fringe benefit plan or program
(including automobile allowances) provided to the Employee at the time of
such termination or resignation until the earlier to occur of:
(A) six months thereafter; or
(B) such time as the Employee is otherwise covered by similar
programs.
Anything herein to the contrary notwithstanding, the Company shall
have no obligation to continue to maintain during the Offset Period any
plan or program solely as a result of the provisions of this Agreement. If,
during the Offset Period, the Employee is precluded from participating in a
plan or program by its terms or applicable law or if the Company elects not
to maintain such plan or program, the Company shall provide the Employee
with compensation the aggregate value of which is sufficient to purchase a
similar benefit program.
(iii) Death During Offset Period. If the Employee dies during the
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Offset Period, the balance of the Company Paid Liquidated Damages will be
paid to his Beneficiary. "Beneficiary" shall mean the person or persons
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designated by the Employee in writing to the Company to receive payments
under this Agreement or, if no such person or persons are designated, the
Employee's estate.
(iv) No Other Benefits. Except as expressly provided in this Section
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7(e), in the event the Employee's employment is terminated by the Company
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without Cause or the Employee resigns his employment with the Company for
Good Reason, the Employee shall not be entitled to any other compensation,
benefits or damages under, or related to, this Agreement with respect to
the year of his termination or resignation or any subsequent year.
(v) Date of Termination. The date of termination of employment
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without Cause shall be the date specified in a written notice of
termination to the Employee. The date of resignation for Good Reason shall
be the date specified in a written notice of resignation from the Employee
to the Company, provided, however, that no such written notice shall be
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effective unless the cure period specified in Section 7(f) has expired
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without the Company
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having corrected, to the reasonable satisfaction of the Employee, the event
or events subject to cure. The Employee shall provide at least thirty (30)
days advance written notice of resignation.
(f) Definition of Good Reason. For purposes of this Agreement, "Good
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Reason" shall mean any one or more of the following events:
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(i) a material reduction in the Employee's Base Salary as then in
effect or failure of the Company to pay any amount owing to the Employee
hereunder when due;
(ii) failure by the Company to obtain the specific assumption of this
Agreement by any successor of the Company, as contemplated in Section 10
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hereof; or
(iii) relocation to further than twenty (20) miles outside of Colorado
Springs, Colorado at any time during the calendar year ending December 31,
1999.
Unless the Employee provides written notification of an event described in
clauses (i) or (ii) of the preceding sentence to the Parent within thirty (30)
days, after the Employee knows or has reason to know of the occurrence of any
such event, the Employee shall be deemed to have consented thereto and such
event shall no longer constitute Good Reason for purposes of this Agreement. If
the Employee provided such written notice to the Parent, the Parent or the
Company shall have thirty (30) days from the date of receipt of such notice to
effect a cure of the event described therein and, upon cure thereof by the
Parent or the Company, as the case may be, to the reasonable satisfaction of the
Employee, such event shall no longer constitute Good Reason for purposes of this
Agreement.
Section 8. Proprietary Information and Inventions.
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(a) Employee Acknowledgments. The Employee recognizes that the Company is
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engaged in a continuous program of research, development, design and production
respecting its business, present and future, and understands that as part of his
employment by the Company or any of its subsidiaries or affiliates, he is, or
may be expected, to make new contributions and inventions of value to the
Company or any of its subsidiaries or affiliates. The Employee understands that
his employment by the Company or any of its subsidiaries or affiliates creates
in him a duty of trust and confidentiality to the Company or any of its
subsidiaries or affiliates with respect to any information (i) related,
applicable or useful to the business of the Company or any of its subsidiaries
or affiliates, including the Company's or any of its subsidiaries' or
affiliates' anticipated research and development; (ii) resulting from tasks
assigned to the Employee by the Company or any of its subsidiaries or
affiliates; (iii) resulting from the use of equipment, supplies or facilities
owned, leased or contracted for by the Company or any of its subsidiaries or
affiliates; or (iv) related, applicable or useful to the business of any client
or customer of (A) the Company or (B) any of the Company's subsidiaries or
affiliates, which may be made known to him by the Company or any of the
Company's subsidiaries or affiliates, or by any client or customer of (A) the
Company or (B) any of the Company's subsidiaries or affiliates, or learned by
him during the Employment Term.
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(b) Assignment of Proprietary Information and Inventions to the Company.
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The Employee agrees that all Proprietary Information (as defined on Exhibit A
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hereto) and Inventions (as defined on Exhibit A hereto) shall be the sole
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property of the Company and its assigns, and the Company and its assigns shall
be the sole owner of all patents, trademarks, service marks, copyrights and
other rights (collectively referred to herein as "Rights") pertaining to
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Proprietary Information and Inventions in any part of the world. The Employee
hereby assigns to the Company any rights he may have or acquire in Proprietary
Information or Inventions or Rights pertaining to Proprietary Information or
Inventions or Rights. The Employee further agrees as to all Proprietary
Information or Inventions to assist the Company or any person designated by it
in every proper way to obtain and from time to time enforce Rights relating to
said Proprietary Information or Inventions in any and all countries. The
Employee shall execute all documents for use in applying for, obtaining and
enforcing such Rights on such Proprietary Information or Inventions as the
Company may desire, together with any assignments thereof to the Company or
persons designated by it. The Employee's obligation to assist the Company or any
person designated by it in obtaining and enforcing Rights relating to
Proprietary Information or Inventions shall continue beyond the date of the
termination of the Employment Term (the "Termination Date"), but the Company
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shall compensate the Employee at a reasonable rate after the Termination Date
for time actually spent by the Employee upon the Company's request for such
assistance. In the event the Company is unable, after reasonable effort, to
secure the Employee's signature on any document or documents needed to apply for
or to enforce any Right relating to Proprietary Information or to an Invention,
whether because of the Employee's physical or mental incapacity or for any other
reason whatsoever, the Employee hereby irrevocably designates and appoints the
Company and its duly authorized officers and agents as his agents and attorneys-
in-fact to act on his behalf and in his stead in the execution and filing of any
such application and in furthering the application for and enforcement of Rights
with the same legal force and effect as if such acts were performed by the
Employee. The Employee hereby acknowledges that all original works of authorship
which are made by the Employee (solely or jointly with others) within the scope
of his employment and which are protectable by copyright are "works for hire" as
that term is defined in the United States Copyright Act (17 USCA, Section 101).
(c) Disclosure of Discoveries, Etc. to the Company. The Employee will
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promptly and from time to time disclose in writing to the Company, and the
Company hereby agrees to receive such disclosures in confidence, all
discoveries, developments, designs, improvements, inventions, formulas, software
programs, processes, techniques, know-how, negative know-how and data, whether
or not patentable or registrable under patent, copyright or similar statutes, or
reduced to practice, made, conceived or learned by the Employee, either alone or
jointly with others during the Employment Term, for the purpose of permitting
the Company to determine whether they constitute Inventions. In order to
facilitate the complete and accurate disclosures described above, the Employee
agrees to maintain complete written records of all Inventions, and of all work,
study and investigation done by him during the Employment Term, which records
shall be the property of the Company.
(d) Employee Acts. The Employee shall not knowingly do anything to
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imperil the validity of any such patent, design or protection or any application
therefor and shall, at the reasonable cost of the Company, render all possible
assistance to the Company both in obtaining and maintaining such patent, design
or other protection, and the Employee shall not, either during the Employment
Term or thereafter, exploit or make public or disclose any such Invention or
give any information in respect thereof except to the Company or as it may
direct.
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(e) Confidentiality. During the Employment Term, and for a period ending
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three (3) years after the termination of this Agreement, whether the termination
is voluntary or involuntary, for cause or without cause, or by disability, the
Employee will keep all Proprietary Information, Inventions and Rights in the
strictest confidence and trust, and the Employee will not disclose, use or
induce or assist in the use or disclosure of any Proprietary Information,
Inventions or Rights pertaining to Proprietary Information, or anything related
thereto, without the prior express written consent of the Company, except as may
be necessary in the ordinary course of performing his duties as an employee of
the Company or as may be required by law. The Employee recognizes that the
Company has received and in the future will receive from third parties their
confidential or proprietary information subject to a duty on the Company's part
to maintain the confidentiality of such information and to use it only for
certain limited purposes. The Employee agrees that he owes the Company and such
third parties, during the Employment Term and for a period of three (3) years
thereafter, a duty to hold all such confidential or proprietary information in
the strictest confidence, and he shall not disclose, use or induce or assist in
the use or disclosure of any such confidential or proprietary information
without the prior express written consent of the Company, except as may be
necessary in the ordinary course of performing his duties as an employee of the
Company consistent with the Company's agreement with such third party or as
required by law.
(f) Noncompetition; Nonsolicitation.
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(i) During the Employment Term, the Employee shall not (A) directly
or by other means with intent engage in any activity which the Company
shall determine in good faith to be in competition with the Company, or (B)
plan or otherwise take any preliminary steps, either alone or in concert
with others, to set up or engage in any business enterprise that would be
in competition with the Company.
(ii) During the Employment Term and for a period ending on the later
of (A) three (3) years after the date of this Agreement first set forth
above, and (B) one (1) year after the (x) termination or (y) expiration of
the Employment Term of this Agreement, the Employee shall not, either
directly or by other means with intent, either alone or in concert with
others, (A) solicit or entice any employee of or consultant to the Company
to leave the Company or to work for anyone other than the Company, or (B)
solicit, entice or in any way divert any customer or supplier with whom the
Employee has conducted business or assisted the Company in providing
business, to do business with any business entity in competition with the
Company.
(iii) During the Employment Term and for a period ending on the later
of (A) three (3) years after the date of this Agreement first set forth
above, and (B) one (1) year after the (x) termination or (y) expiration of
the Employment Term of this Agreement, the Employee shall not, directly or
by other means with intent, through affiliates, a partnership, a joint
venture or otherwise, (A) enter into, engage in, conduct or carry on any
business which competes with the business conducted by the Company at the
end of the Employment Term, (including developments and products of the
Company toward which the Employee has contributed or will, during the
Employment Term, contribute)(collectively referred to herein as a
"Competitive Business") or (B) participate in the management of any person,
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firm,
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enterprise or corporation if such person, firm, enterprise or corporation
engages or proposes to engage in a Competitive Business, in the geographic
areas where the Company conducts business at the end of the Employment
Term.
(iv) If any of the covenants contained in this Section 8(f) is
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determined to be unenforceable because of the duration of such covenants or
the area covered thereby, or the scope of such prohibited activities, then
the court making the determination shall have the power to reduce the
duration of such covenant, area covered and/or the scope of prohibited
activities covered thereby, and such covenants, in their reduced form shall
be enforceable. If any of the covenants contained in this Section 8(f) is
determined to be wholly unenforceable by the courts of any domestic or
foreign jurisdiction, such covenant shall be deemed severable into
independent covenants and shall be enforceable as so severed to the extent
permitted by such court.
(g) Delivery of Materials to the Company. Upon the termination of the
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Employment Term, the Employee shall deliver to the Company all devices, records,
sketches, reports, proposals, lists, correspondence, equipment, documents,
photographs, photostats, negatives, undeveloped film, notes, drawings,
specifications, tape recordings or other electronic recordings, programs, data
and other materials or property of any nature belonging to the Company or
pertaining to the Employee's work with the Company. The Employee shall not take
with him any of the foregoing or any reproduction of any of the foregoing.
(h) Prior Inventions of the Employee. Listed in Item 1 of Exhibit B
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attached hereto are all inventions or improvements relevant to the subject
matter of the Employee's employment which have been made, conceived of or first
reduced to practice by the Employee alone or jointly with others prior to the
Employment Term and which the Employee desires to remove from the operation of
this Agreement. The Employee represents and warrants that such list is complete.
If there is no such list in Item 1 of Exhibit B, the Employee represents and
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warrants that he has made no such inventions or improvements prior to the
Employment Term.
(i) Prior Confidentiality Agreements. The Employee represents and
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warrants that his performance of all of the terms and provisions of this
Agreement as an employee of the Company does not and will not breach any
agreement to keep in confidence proprietary information acquired by the Employee
in confidence or in trust prior to his employment by the Company. The Employee
also represents and warrants that he has not entered into, and covenants that he
will not enter into, any agreement, either written or oral, in conflict
herewith.
(j) Materials or Documents of a Former Employer. The Employee represents
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and warrants to and covenants with the Company that he has not brought and will
not bring with him to the Company, or use in his employment with the Company,
any materials or documents of a former employer (which term, for purposes of
this Section 8, shall also include persons, firms, corporations and other
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entities for which the Employee has acted as an independent contractor or
consultant), other than materials and documents of the Company relating to its
business and acquired by SIS under the Merger Agreement, which are not generally
available to the public, unless he has obtained express written authorization
from any such former employer for their possession and use. The materials or
documents of a former employer (other than the Company) which are not generally
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available to the public but which he will bring to the Company for use in his
employment are identified in Item 2 of Exhibit B attached hereto. As to each
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such item, the Employee represents and warrants that he has obtained prior to
the effective date of his employment hereunder express written authorization for
their possession and use in his service to the Company. The Employee also
understands that, in his service to the Company, he is not to breach any
obligation of confidentiality that he has to former employers, and he shall
fulfill all such obligations during his employment hereunder.
(k) Services Provided as a Consultant; Delivery of the Termination
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Certificate by the Employee. The terms and conditions of this Section 8 shall
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apply to any period, if any, during which the Employee performs services for the
Company as a consultant or independent contractor, as well as any time during
which he is employed directly by the Company. Upon the termination of the
Employment Term, the Employee agrees to sign and deliver the "Termination
Certificate" attached hereto as Exhibit C. The Employee's failure to sign such
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Termination Certificate, however, shall not affect his obligations under this
Agreement.
Section 9. Remedies; Liquidated Damages Paid by Employee.
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If the Employee commits a breach, or threatens to commit a breach, of any
of the provisions of Section 8 hereof, the Company shall have (i) the right to
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have such provisions specifically enforced by any court having equity
jurisdiction, it being acknowledged and agreed that any such breach or
threatened breach will cause irreparable injury to the Company and that money
damages will not provide an adequate remedy to the Company, and (ii) the right
to require the Employee to account for and pay over to the Company all
compensation or profits derived or received by the Employee as a result of any
breach of any of the provisions of such Section 8, and the Employee hereby
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agrees to account for and pay over such compensation or profits to the Company.
The invalidity or unenforceability of all or any portion of Section 8 shall not
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affect the validity or enforceability of any other provision or portion hereof
or thereof, and if any provision or portion of this Agreement shall be
determined by any court of competent jurisdiction to be unenforceable or
otherwise invalid as written, then each such provision or portion shall be
enforced and validated to the full extent permitted by law.
Section 10. Successors and Assigns.
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This Agreement shall be binding upon and inure to the benefit of the
Company and its respective successors and assigns and shall be binding upon and
inure to the benefit of the Employee and his executors and administrators. This
Agreement, and the Employee's rights and obligations hereunder, may not be
assigned by the Employee. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company to assume expressly
and to agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken
place.
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Section 11. Waiver of Breach.
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The waiver by the Company or the Employee of a breach of any provision of
this Agreement by the other party shall not be construed as a waiver of any
subsequent breach of the same provision or of any other provision of this
Agreement.
Section 12. Notices.
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All notices, requests, demands and other communications submitted hereunder
shall be in writing and shall be deemed to have been duly given if delivered by
hand or by express service or if mailed by first-class registered mail, return
receipt requested, postage and registry fees prepaid, and addressed: if to the
Employee, to the address set forth in the first paragraph hereof; and if to the
Company, to:
Systems Integration Software, Inc.
c/o SM&A Corporation
0000 XxxXxxxxx Xxxxx, Xxxxx 000
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000
Attention: President
with a copy to:
Xxxxxx X. Xxxxx, Esq.
Xxxxx & Xxxxxx
000 Xxxxx Xxxx., Xxxxx 0000
Xxxxx Xxxx, Xxxxxxxxxx 00000
or at such other address as either party shall furnish to the other.
Section 13. Miscellaneous.
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This Agreement shall be governed by, and construed in accordance with, the
laws of Colorado without regard to its conflict of laws statutes, as if this
Agreement were executed and performed entirely within Colorado. This Agreement
incorporates the entire understanding of the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements, arrangements and
understandings, whether written or oral, relating to such subject matter. The
invalidity of any section, provision or portion of this Agreement shall not
affect the validity of any other section, provision or portion of this
Agreement, and each such section, provision or portion shall be enforced to the
full extent permitted by law. This Agreement may not be modified or amended, or
any term or provision hereof waived or discharged, except by a written
instrument signed by the party against which such amendment, modification,
waiver or discharge is sought to be enforced. The headings of this Agreement
are for the purposes of reference only and shall not limit or otherwise affect
the meaning hereof. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.
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Section 14. Indemnification.
---------- ---------------
The Company and the Parent will indemnify the Employee in the same manner
and to the same extent to which they indemnify their other senior executives.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
COMPANY: SYSTEMS INTEGRATION SOFTWARE, INC.
By: /s/ Xxxxxxx X. Xxxxxxx
--------------------------------
Title:_____________________________
EMPLOYEE: ___________________________________
[print name]
/s/ Xxxx Xxxxxx
-----------------------------------
[signature]
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EXHIBIT A
"Proprietary Information" Defined:
--------------------------------
For purposes of this Agreement, "Proprietary Information" shall mean
-----------------------
information that has been created, discovered, developed or otherwise become
known to the Employee or the Company or in which property rights have been
assigned or otherwise conveyed to the Employee or the Company, which the
Employee may have learned or discovered, or may make, learn of or discover while
in employment of the Company, whether before the commencement of this Agreement
or during the term hereof, which information has material economic value or
potential material economic value to the business in which the Company is or
will be engaged. Proprietary Information shall include, but not be limited to,
trade secrets, processes, formulas, data, know-how, negative know-how,
improvements, discoveries, developments, designs, ideas, Inventions, techniques,
all technical data, customer and supplier lists, and any modifications or
enhancements thereto, programs and information (whether or not in writing) which
have actual or potential economic value to the Company, together with any
copyright or patent therein. For purposes of this Agreement, Proprietary
Information shall not include information that has become public knowledge
through legal means without fault by the Employee, or is already public
knowledge prior to disclosure of the same by the Company and/or its subsidiaries
or affiliates to the Employee.
"Inventions" Defined:
-------------------
For purposes of this Agreement, "Inventions" shall mean all discoveries,
----------
developments, designs, improvements, inventions, formulas, software programs,
processes, techniques, know-how, negative know-how and data, whether or not
patentable or registrable under patent, copyright or similar statutes, that are
related to or useful in the business or future business of the Company or result
from use of premises or other property owned, leased or contracted for by the
Company. Without limiting the generality of the foregoing, Inventions shall
also include anything that derives actual or potential economic value from not
being generally known to the public or to other persons who can obtain economic
value from its disclosure or use.
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EXHIBIT B
ITEM 1:
The following is a complete list of all inventions or improvements relevant
to the subject matter of the Employee's employment by the Company that have been
made or conceived of or first reduced to practice by the Employee alone or
jointly with others prior to his employment by the Company:
Item 2:
The following is a complete list of all materials and documents of a former
employer that are not generally available to the public that the Employee will
bring or have brought to the Company or have used or will use in his employment
by the Company:
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EXHIBIT C
TERMINATION CERTIFICATION
-------------------------
I certify as follows:
1. When I signed the attached Employment Agreement (the "Agreement"), I
---------
read and understood the terms of the Agreement.
2. I hereby acknowledge that I have fully complied with the terms of the
Agreement, including, without limitation, the disclosure and assignment to
Systems Integration Software, Inc. (or its successors or assigns) (the
"Company") of any Inventions covered by that Agreement, and the return of any
-------
documents and other materials of any nature relating to my employment with the
Company.
3. I hereby acknowledge and agree to comply with my continuing
obligations under this Agreement, including, without limitation, my obligation
not to use for personal benefit or to disclose to others any Proprietary
Information of the Company.
4. I understand and acknowledge that should I fail to comply with my
obligations under the Agreement, the Company shall have the right to injunctive
relief against me, including, without limitation, an injunction prohibiting me
from disclosing Proprietary Information to a third party.
Dated as of: ________________
___________________________________
Signature of Employee
___________________________________
Print Name
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