EXHIBIT 10.50
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SETTLEMENT, RELEASE, AND SEVERANCE AGREEMENT
This Settlement, Release and Severance Agreement (hereinafter "Agreement") is
made and entered into by and between Xxxxxx X. Xxxxxxxxxxx (hereinafter referred
to as the "Releasor" or "Employee" and Extended Systems Incorporated, a
corporation, and its officers, principals, agents, employees, directors,
representatives, insurers, and all other persons or entities acting for, by or
through any of them (individually and/or collectively referred to herein as the
"Releasees").
A. Whereas, the Releasor's date of hire with Extended Systems Incorporated
(the "Company") was 8/15/1990.
B. Whereas, the Releasor's active employment with the Company will be
terminated on January 30, 2003.
C. Whereas, the Company has agreed to pay severance in the total amount of
$77,180 (less taxes) which represents six months of base pay and $2000 in
lieu of fringe benefits to Releasee in exchange and as consideration for
execution by Releasor of this Agreement. This severance benefit will be
paid out over time according to Extended Systems' normal bi-monthly pay
cycle.
Now therefore, in consideration of the agreements and covenants contained in
this Settlement, Release, and Indemnity Agreement, it is hereby understood and
agreed by and between the parties hereto as follows:
1. That in consideration of severance payment in the amount of $77,180 (less
taxes), which represents six months of base pay and $2000 in lieu of fringe
benefits, the Releasor does hereby release, acquit, and forever discharge
the Releasees, individually and collectively, of and from any and all
claims, actions, causes of actions, demands, rights, damages, costs,
expenses, and compensation whatsoever which the Releasor now has or may
hereafter acquire, arising out of or in any way connected with any and all
known and unknown, foreseen and unforeseen rights, claims, and damages
resulting from or in any way arising out of Releasor's employment with
Releasee. This release and discharge by the Releasor (on behalf of
Releasor, heirs, spouses, and assigns) in favor of the Releasees includes,
but is not limited to, all claims and damages allowable by law or equity
for any and all events, occurrences, and circumstances occurring by and
between the Releasor and the Releasees arising from or in any way connected
with Releasor's employment with the Company.
2. This release applies to all charges, complaints, claims, liabilities,
obligations, promises, agreements, controversies, damages, actions, causes
of action, suits, rights demands, costs, losses, debts and expenses
(including attorney's fees and costs actually incurred) of any nature
whatsoever known or unknown, suspected or unsuspected, including, but not
limited to, rights under the Age Discrimination in Employment Act of 1967,
as amended, Title VII of the Civil Rights Act of 1964, as amended, and
other federal, state, or local laws, including without limitation common
law prohibiting discrimination, claims growing out of any legal
restrictions on the Company's right to terminate employees ("Claim" or
"Claims"), which Releasor now has, owns or holds, or claims to have owned
or held, or which Releasor at any time hereinafter may have owned or held
or claimed to have owned or held against the Company. Releasor has been
given at least fourteen (14) days within which to consider this settlement
agreement.
3. That it is understood and agreed by the Releasor and the Releasees that, as
additional consideration for this Agreement, the proprietary and
confidential information regarding the Company obtained by Releasor during
his employment with the Company and the terms and conditions of this
Agreement are strictly confidential and shall not be revealed to any one
other than legal counsel representing the parties, tax preparers or tax
consultants, or such other individuals or entities agreed to by the parties
in writing, or by order of a court of competent jurisdiction. The parties
to this Agreement further agree that these confidentiality provisions are
significant and material provisions of this Agreement and are to be
strictly adhered to and enforced.
Terms of Releasor's Non-Disclosure Agreement, referred to in the Functional
Management Team Employment Agreement signed and dated by Releasor on
January 17, 2002, will continue in full force and effect for a period of
(1) year after the date of termination. Terms of this Agreement are:
NONDISCLOSURE BY RELEASOR. Releasor agrees that he or she shall never,
directly or indirectly, use, disseminate, disclose, lecture upon or publish
any information concerning financial information, patents, copyrights,
inventions, trade secrets, technical processes, methods, formulas,
techniques, proprietary rights, products, services, and technical
information of Extended Systems to any third party or to the public without
the written consent of Extended Systems. Releasor acknowledges and agrees
that he can be held liable to Extended Systems for damages caused by any
improper disclosure of Extended Systems information. This shall not
prohibit a discussion of information that has been previously distributed
and is generally known in the computer-related industry.
IMPROVEMENTS TO ESI PRODUCTS AND RELATED INVENTIONS. It is agreed that
during the term of this Agreement any inventions or improvements of ESI
products, processes, or programs conceived, designed or developed by
Releasor that relate to the subject matter of materials supplied or
products manufactured by ESI or that relate to the research and development
of ESI or result from any task assigned to Releasor by ESI shall by
property of ESI and shall be communicated by Releasor to ESI without delay.
Releasor agrees to execute any necessary documents to establish ESI's
ownership of the matters referred to in this paragraph or to transfer
ownership from Releasor to Extended Systems. All matters referred to in
this paragraph shall be protected against nondisclosure in the manner as
CONFIDENTIAL INFORMAITON under this Agreement.
4. Releasor also agrees that for a period of six (6) months after the
termination of their employment with Extended Systems Incorporated, that
they shall not induce or attempt to induce any employee, agent or
consultant of Extended Systems Incorporated or any subsidiary to terminate
his or her association with Extended Systems Incorporated or any
affiliates. Extended Systems Incorporated and Releasor agree that the
provisions of this paragraph contain restrictions that are not greater than
necessary to protect the interests of Extended Systems Incorporated. In the
event of the breach or threatened breach by Releasor of this paragraph,
Extended Systems Incorporated, in addition to all other remedies available
to it at law or in equity, will be entitled to seek injunctive relief
and/or specific performance to enforce this paragraph.
5. That it is understood and agreed by the Releasor that no promise,
inducement or agreement not stated herein has been made to him or her and
that this Agreement contains the entire agreement among the parties hereto,
and that the terms of this Agreement are contractual and not mere recitals.
6. That it is understood and agreed by the Releasor that this Agreement is
entered into in the state of Idaho and shall be construed and interpreted
in accordance with Idaho law.
7. Releasor also certifies that they do not have in their possession or
control, and that they have not taken or will not take from the Company
premises, any Company property. Company property includes, but is not
limited to, products, tools, inventory, or proprietary data or copies
thereof including engineering notebooks, patent applications, technical
reports, or other documents which are not generally available to the
public. Releasor will retain all confidential information in trust and
confidence for Extended Systems Incorporated and not disclose or discuss it
with anyone or use it for personal gain. Releasor recognizes that these
obligations continue beyond termination until the information becomes
public or Extended Systems Incorporated grants written permission to use or
disclose it.
8. Releasor further understands and agrees that all work they have done to
this point will be turned over to the company prior to their termination
date.
DATED as of January 20th, 2003.
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Month Day
/s/ Xxxxxx X. Xxxxxxxxxxx
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Employee and Releasor
