EMPLOYMENT AGREEMENT
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THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into this
lst day of June, 1999, by and between XXXX X. XXXXXX ("Employee") and XXX.
XXXXXX' ORIGINAL COOKIES, INC., a Delaware corporation (the "Company").
RECITAL
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This Agreement is made and entered into with reference to the following
facts and objectives:
The Company desires to establish its right to the services of Employee in
the capacities described below, on the terms and conditions hereinafter set
forth, and Employee is willing to accept such employment on such terms and
conditions.
Therefore, in consideration of the mutual agreements hereinafter set forth,
Employee and the Company have agreed and do hereby agree as follows:
AGREEMENT
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1. DUTIES. The Company does hereby hire, engage, and employ the Employee
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as the Chief Financial Officer and Senior Vice President of Finance and
Administration of the Company and Employee does hereby accept and agree to such
hiring, engagement, and employment. Employee shall serve the Company in such
position fully, diligently, competently, and in conformity with provisions of
this Agreement and the corporate policies of the Company as they presently
exist, and as such policies may be amended, modified, changed, or adopted during
the Period of Employment, as hereinafter defined.
During the Period of Employment Employee shall also serve as the Chief
Financial Officer and Senior Vice President of Finance and Administration of
each subsidiary or affiliate of the Company that is now or that becomes a part
of the Xxx. Xxxxxx Company Group. As used in this Agreement, the term the "Xxx.
Xxxxxx Company Group" shall mean and refer to the Company and the Company's
subsidiaries and affiliates from time to time.
Subject to specific elaboration by the Board of Directors of the Company as
to the duties (which shall be consistent herewith and with Employee offices
provided for hereunder) that are to be performed by Employee and the manner in
which such duties are to be performed, the duties of Employee shall entail those
duties customarily performed by a Chief Financial Officer and Senior Vice
President of Finance and Administration of a company with a sales volume and the
number of employees commensurate with those of the Company. Provided, however,
that at all times during the Period of Employment, Employee shall perform those
duties and fulfill those responsibilities and refrain from those activities that
are reasonably prescribed or proscribed by the Board of Directors of the Company
to be performed or refrained from by his consistent with his positions with the
Company.
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Employee shall be responsible and report only to the Company's President
and Chief Executive Officer.
Throughout the Period of Employment, Employee shall devote his full time,
energy, and skill to the performance of his duties for the Company and for the
benefit of the Company and the Xxx. Xxxxxx Company Group.
Employee shall exercise due diligence and care in the performance of his
duties for and the fulfillment of his obligations to the Company under this
Agreement.
The Company shall furnish Employee with office, secretarial and other
facilities and services as are reasonably necessary or appropriate for the
performance of Employee's duties hereunder and consistent with his position as
the Chief Financial Officer and Senior Vice President of Finance and
Administration of the Company.
2. PERIOD OF EMPLOYMENT. The Period of Employment (as defined below)
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shall, unless sooner terminated as provided herein, be the two (2) year period
commencing on the date of execution of this Agreement.
Unless the Company gives notice of termination as provided under this
Agreement, this Agreement will automatically renew on each annual anniversary
from the execution of this Agreement for a successive two-year period.
3. COMPENSATION.
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(a) BASE SALARY. During the Period of Employment, the Company shall
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pay Employee, and Employee agrees to accept from the Company, in payment for his
services a base salary of Two Hundred Thirty-Five Thousand Dollars ($235,000.00)
per year ("Base Salary"), payable in equal semi-monthly installments or at such
other time or times as Employee and the Company shall agree. Upward adjustment
to the Base Salary shall be considered by the Company's Board of Directors not
less frequently than annually. The Company's Board of Directors at any time or
times may, but shall have no obligation to, supplement Employee's salary by such
bonuses and/or other special payments and benefits as the Board of Directors of
the Company in its sole and absolute discretion may determine.
(b) INCENTIVE COMPENSATION. During the Period of Employment, Employee
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shall participate in any incentive compensation plan adopted by the Company and
available to all other senior management employees of the Company.
4. FRINGE BENEFITS. During the Period of Employment, Employee shall be
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entitled to the following fringe benefits.
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(a) BENEFIT PLANS. Employee shall be entitled to participate in all
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benefit plans and programs generally available to all other senior management
employees of the Company or to all employees of the Company working in Salt Lake
City, Utah, subject to any restrictions specified in such plans and to receive
such other benefits and conditions of employment as are provided to all other
senior officers or executives of the Company as of the date of this Agreement.
(b) EQUITY PLAN. Employee shall be entitled to participate in an
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equity based plan or arrangement which shall consist of a minimum of 1.5 % of
the equity given to senior management (the "Equity Plan").
Anything in this Agreement or in such plan or arrangement to the contrary
notwithstanding, the inclusion in such plan or arrangement of any provision(s)
addressing participation by Employee in such plan or arrangement for a period of
years shall not be interpreted as a promise of continued employment by the
Company for such period of years or any other period of time.
The plan or arrangement to be proposed by Employee shall provide that any
payments made thereunder, in conjunction with any other payments that constitute
"parachute payments" (as defined in Section 280G(b)(A) of the Internal Revenue
Code) (the "Code"), shall be limited such that no such payments or portions
thereof constitute an "excess parachute payment" (as defined in Section
280G(b)(1) of the Code) or are otherwise nondeductible by the Company for tax
purposes under any other provision of the Code.
(c) VACATION AND OTHER LEAVE. Employee shall be entitled to such
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amounts of paid vacation and other leave, but not less than three (3) weeks
vacation per twelvemonth period of employment, as from time to time may be
allowed to the Company's senior management personnel generally, with such
vacation to be scheduled and taken in accordance with the Company's standard
vacation policies applicable to such personnel.
(d) VESTING ON DEATH OR DISABILITY. Upon any termination of this
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Agreement and Employee's employment hereunder by reason of Employee's death or
Permanent Disability, as defined in Section 7(b) ("Death or Disability -
Definition of Permanently Disabled and Permanent Disability"), provided that the
terms and provisions of such plan and applicable law permit, any theretofore
deferred or unvested portion of any award made to Employee in respect of any
retirement, pension, profit sharing, long term incentive, and similar plans
automatically shall become fully vested in Employee and shall be nonforfeitable,
and shall continue in effect and be redeemable by or payable to Employee (or his
designated beneficiary or estate) at the time and on the same conditions as
would have applied had Employee's employment not been so terminated. It is
expressly provided, however, that nothing in this Section 4(d) shall obligate
the Company to provide full vesting upon death or disability in connection with
participation by Employee in the equity plan or arrangement contemplated under
Section 4(b) ("Fringe Benefits-Equity Plan"), further, the provisions governing
payment of any incentive compensation payable to Employee pursuant to the
incentive compensation plan(s)
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referred to in Section 3(b) ("Compensation-Incentive Compensation") shall govern
any payment of incentive compensation due thereunder in the event of Employee's
death or disability.
5. BUSINESS EXPENSES AND AUTOMOBILE ALLOWANCE. During the Period of
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Employment, the Company shall pay, or in case paid by Employee in the first
instance, reimburse Employee for, any and all necessary, customary, and usual
expenses incurred by him in connection with the performance of his duties
hereunder, including, without limitation, all traveling expenses, and
entertainment expenses, upon submission of appropriate vouchers and
documentation.
6. NO OTHER BENEFITS OR COMPENSATION. Employee, as a result of his
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employment by the Company, shall be entitled to only the compensation and
benefits provided for in this Agreement, subject to the terms thereof, and no
others.
7. DEATH OR DISABILITY.
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(a) TERMINATION OF EMPLOYMENT. If Employee dies during the Period
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of Employment, Employee's employment shall automatically cease and terminate as
of the date of Employee's death.
If Employee becomes Permanently Disabled (as hereinafter defined)
while employed by the Company, (i) Employee's employment and the Company's
obligations hereunder, including the payment of Base Salary pursuant to Section
3(a) ("Compensation-Base Salary") shall continue for a period of ninety (90)
days from the date on which the Employee is determined to be Permanently
Disabled ("Employee s Disability Date"), and (ii) ninety (90) days after the
Employee's Disability Date, Employee's employment and all obligations of the
Company hereunder shall automatically cease and terminate.
In the case of Employee's death or Permanent Disability (as
hereinafter defined), the Company shall be obligated to pay to Employee (or to
Employee s estate in the case of Employee's death) any Base Salary and any
incentive compensation accrued to Employee as of the date of the Employee's
death, or in the case of Employee's Permanent Disability, as of the Employee's
Disability Date. In the event Employee's employment is terminated on account of
Employee's Permanent Disability, he shall, so long as his Permanent Disability
continues, remain eligible for all benefits provided under any long-term
disability programs of the Company in effect at the time of such termination,
subject to the terms and conditions of any such programs, as the same may be
changed, modified, or terminated for or with respect to all senior management
personnel of the Company.
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(b) DEFINITION OF PERMANENTLY DISABLED AND PERMANENT DISABILITY. For
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purposes of this Agreement (other than Sections 4 (a) ("Fringe Benefits-Benefit
Plans"), 4 (d) ("Fringe Benefits-Vesting on Death or Disability"), and the
provisions relating to disability insurance contained in the last sentence of
Section 7(a) ("Death or Disability-Termination of Employment"), the terms
"Permanently Disabled" and "Permanent Disability" shall mean Employee's
inability, because of physical or mental illness or injury, to perform
substantially all of his customary duties pursuant to this Agreement, and the
continuation of such disabled condition for a period of ninety (90) continuous
days, or for not less than one hundred eighty (180) days during any continuous
twenty-four (24) month period. Whether Employee is Permanently Disabled shall be
certified to the Company by a Qualified Physician (as hereinafter defined), or
if requested by Employee a panel of three Qualified Physicians. If Employee
requests such a panel, Employee and the Company shall each select a Qualified
Physician who together shall then select a third Qualified Physician. The
determination of the individual Qualified Physician or the panel, as the case
may be, shall be binding and conclusive for all purposes. As used herein, the
term "Qualified Physician" shall mean any medical doctor who is licensed to
practice medicine in the State of Utah and is reasonably acceptable to each of
Employee and the Company. Employee and the Company may in any instance, and in
lieu of a determination by a Qualified Physician or panel of Qualified
Physicians, agree between themselves that Employee is Permanently Disabled. The
terms Permanent Disability and Permanently Disabled as used herein may have
meanings different from those used in any disability insurance policy or program
maintained by Employee or the Company.
8. TERMINATION BY THE COMPANY.
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(a) TERMINATION FOR CAUSE. The Company, by action of its Board of
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Directors, may, by providing written notice to Employee, terminate the
employment of Employee under this Agreement for "cause" at any time. The term
"cause" for purpose of this Agreement shall mean:
(i) The refusal of Employee to implement or adhere to lawful
policies or directives of the Board of Directors of the Company consistent with
this Agreement; or
(ii) Employee's conviction of or entrance of a plea of nolo
contendere to (A) a felony, (B) to any other crime, which other crime is
punishable by incarceration for a period of one (1) year or longer, or (C) other
conduct of a criminal nature that may have an adverse impact on the Company s
reputation and standing in the community; or
(iii) conduct that is in violation of Employee's common law duty of
loyalty to the Company; or
(iv) fraudulent conduct by Employee in connection with the business
affairs of the Company, regardless of whether said conduct is designed to
defraud the Company or others; or
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(v) theft, embezzlement, or other criminal misappropriation of funds
by Employee, whether from the Company or any other person; or
(vi) any breach of or Employee's failure to fulfill any of Employee's
obligations, covenants, agreements, or duties under this Agreement.
Provided, however, that "cause" pursuant to clause (i) or (vi) shall not be
deemed to exist unless the Company has given Employee written notice thereof
specifying in reasonable detail the facts and circumstances alleged to
constitute "cause", and thirty (30) days after such notice such conduct or
circumstances has not entirely ceased or been entirely remedied. If Employee's
employment is terminated for "cause," the termination shall take effect upon the
effective date (pursuant to Section 24 ("Notices") of written notice of such
termination to Employee. In the event Employee's employment is terminated for
"cause," then except for unpaid accrued vacation, the Company shall have no
obligation to pay Employee any amounts, including, but not limited to Base
Salary, for or with respect to any period after the effective date of the
termination of Employee's employment for "cause," including any obligation under
the Incentive Plan or the Equity Plan.
If the Company attempts to terminate Employee's employment pursuant to this
Section 8(a) and it is ultimately determined that the Company lacked "cause,"
the provisions of Section 8(b) ("Termination by the Company-Termination Without
Cause") shall apply, and Employee's sole and exclusive remedy for such breach of
this Agreement by the Company and/or any other damages that Employee shall have
suffered or incurred of any nature whatsoever, shall be to receive the payments
expressly called for by Section 8(b) ("Termination by the CompanyTermination
Without Cause") with interest on any past due payments at the rate of eight
percent (8 %) per year from the date on which the applicable payment would have
been made pursuant to Section 8(b) ("Termination by the Company-Termination
Without Cause") plus Employee's costs and expenses (including but not limited to
reasonable attorneys' fees) incurred in connection with such dispute.
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(b) TERMINATION WITHOUT CAUSE. The Company may, with or without
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reason, terminate Employee's employment under this Agreement without "cause" at
any time, by providing Employee thirty (30) days prior written notice of such
termination. If Employee's employment is terminated pursuant to this Section
8(b), Employee shall not be obligated to render services to the Company
following the effective date of such notice (the "Notice Date") except such
services as are requested by the Company pursuant to Section 11 ("Transition
Period Services") , and as its sole exclusive obligation and duty to Employee
resulting directly or indirectly from the termination of Employee's employment
with the Company and in full and complete settlement of any and all claims that
Employee may have or claim to have arising directly or indirectly out of the
termination of his employment with the Company, the Company shall, subject to
Section 12 ("Non Competition") pay Employee, as severance pay, an amount (the
"Severance Amount") equal to the product of multiplying the then current semi-
monthly base salary by thirty-six (36) semi-monthly periods (the "Severance
Period"). The Severance Amount shall be payable by the Company to Employee in an
amount equal to the Base Salary payable in twelve (12) equally monthly
installments commencing on the Notice Date. The Company shall also pay to the
Employee a portion of any discretionary bonus (the "Bonus Portion"), as
determined by the Company's Board of Directors, referred to in Section 3(a)
("Compensation-Base Salary"), that, but for the termination of Employee's
employment, would have been paid to Employee for or with respect to the calendar
year in which Employee's
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employment is terminated. The Bonus Portion shall consist of that percentage of
the said discretionary bonus determined by dividing the number of full or
partial calendar months during the calendar year in which Employee's employment
is terminated that Employee was in the employ of the Company by twelve (12).
Until the end of the Severance Period or until Employee is gainfully employed by
another employer, which ever time period is less, the Company shall allow
Employee to continue participation in the Company s group health insurance plan
at the Company's expense. In accordance with all applicable laws, Employee shall
be extended all COBRA rights and benefits at the end of the Severance Period.
9. TERMINATION BY EMPLOYEE.
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(a) TERMINATION-WITHOUT GOOD REASON. Employee shall have the right to
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terminate this Agreement and his employment hereunder at any time upon thirty
(30) days prior written notice of such termination to the Company. Except as
expressly set forth in Section 11 ("Transition Period Services"), upon the
effective date of any such termination all obligations and rights of Employee
and the Company hereunder shall terminate and cease.
(b) TERMINATION-WITH GOOD REASON. If the Company:
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(i) requires Employee to relocate his home, without Employee's
consent, to a location which is more than 75 miles from 0000 Xxxx Xxxxxxxxxx
Xxxxxxx, Xxxxx 000, Xxxx Xxxx Xxxx, Xxxx 00000; or
(ii) fails to provide Employee with the compensation and
benefits called for by this Agreement; or
(iii) assigns Employee to a lower organizational level than the
level at which he is on the date of this Agreement assigned, or substantially
diminishes Employee's assignment, duties, responsibilities, or operating
authority from those specified in Section 1 ("Duties"); or
(iv) fails to implement an incentive compensation plan required
by Section 3(b) ("Compensation-Incentive Compensation"); or
(v) fails to implement an equity plan or arrangement required
by Section 4(b) ("Fringe Benefits-Equity Plan"); or
(vi) is divested, by sale, closure, liquidation, foreclosure, or
other means, of any substantial part of its assets or business as now held or
conducted; or
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(vii) breaches this Agreement and such breach continues for a period
of thirty (30) days after written notice thereof given by Employee to the
Company, then any one or more of such circumstances shall constitute "Good
Reason", and, subject to the provisions of Section 10 ("Means and Effect of
Termination"), Employee shall have the right to terminate this Agreement and his
employment hereunder for Good Reason, if, thirty (30) days after the effective
date of Employee's notice to the Company of such circumstances constituting Good
Reason, such circumstances continue to exist, and for all purposes of this
Agreement any such termination of this Agreement by Employee shall have the same
effects under this Agreement as the termination of the Employee's employment
under this Agreement by Company without "cause."
10. MEANS AND EFFECT OF TERMINATION. Any termination of Employee's
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employment under this Agreement shall be communicated by written notice of
termination from the terminating party to the other party. The notice of
termination shall indicate the specific provision(s) of this Agreement relied
upon in effecting the termination and shall set forth in reasonable detail the
facts and circumstances alleged to provide a basis for termination, if any such
basis is required by the applicable provision(s) of this Agreement. Any notice
of termination by the Company shall be approved by a resolution duly adopted by
a majority of the directors of the Company then in office. The burden of
establishing the existence of "cause" or Good Reason shall be upon the
terminating party. If Employee's employment is terminated by either party, then
promptly after the effective date of such termination or in the manner and at
the time or times provided in the relevant Section of this Agreement, the
Company promptly shall provide and pay to Employee, or in case of his death his
estate or heirs, all compensation, benefits, and reimbursements due or payable
to Employee for the period to the effective date of the termination. To the
extent permitted by applicable law, the calendar month in which Employee's
employment is terminated shall be counted as a full month in determining amount
and vesting of any benefits under benefit plans of the Company.
11. TRANSITION PERIOD SERVICES. In the event Employee's employment is
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terminated by the Company pursuant to section 8(b) ("Termination by the Company-
Termination Without Cause") or by Employee pursuant to Section 9(a)
("Termination by Employee-Without Good Reason"), if requested by the Company in
writing, Employee shall render such services, on a part-time basis for a period
not to exceed sixty (60) days after the effective date of the notice of
termination (whether given by the Company or by Employee), as the Company's
Board of Directors reasonably requests for transition purposes. Employee shall
receive no compensation for such services, other than the payment of Base Salary
as provided in Section 8(b) ("Termination by the Company-Termination Without
Cause") and reimbursement for expenses incurred by Employee in providing such
services as provided in, and subject to the provisions of, Section 5 ("Business
Expenses and Automobile Allowance")
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12. NON COMPETITION. For a period of one year from the date of the
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termination of Employee's employment hereunder, Employee shall not become an
employee, owner (except for passive investments of not more than three percent
(3 %) of the outstanding shares of, or any other equity interest in, any company
or entity listed or traded on a national securities exchange or in an over-the-
counter securities market), officer, agent or director of any firm or person
which either directly competes with a line or lines of business (which shall be
defined as cookies or pretzels only) of the Company accounting for ten percent
(10%) or more of the Company's gross sales, revenues or earnings before taxes.
If, in any judicial proceeding, a court shall refuse to enforce all of the
separate covenants deemed included in this paragraph, the parties intend that
those of such covenants which, if eliminated, would permit the remaining
separate covenants to be enforced in such proceedings shall, for the purpose of
such proceedings, be deemed eliminated from the provisions of this Section 12.
In addition to any other remedies that may otherwise be available for a
breach of Section 12 hereof by Employee, Employee agrees that in the event of
such breach he shall irrevocably forfeit any right he may have to any remaining
severance payment to be made under Section 8(b) ("Termination by the Company-
Termination Without Cause") subsequent to such breach.
13. ASSIGNMENT. This Agreement is personal in its nature and neither of
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the parties hereto shall, without the consent of the other, assign or transfer
this Agreement or any rights or obligations hereunder; provided, however, that,
in the event of the merger, consolidation, or transfer or sale of all or
substantially all of the assets of the Company with or to any other individual
or entity, this Agreement shall, subject to the provisions hereof, be binding
upon and inure to the benefit of such successor and such successor shall
discharge and perform all the promises, covenants, duties, and obligations of
the Company hereunder.
14. GOVERNING LAW. This Agreement and the legal relations hereby created
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between the parties hereto shall be governed by and construed under and in
accordance with the internal laws of the State of Utah, which internal laws
exclude any law or rule of the State of Utah, or any interpretation thereof,
that would require or call for the application of the laws of any other state or
jurisdiction hereto.
15. ENTIRE AGREEMENT. Except with respect to final agreement regarding
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those open incentive compensation matters described in Section 3(b)
("Compensation-Incentive Compensation") and the equity plan or arrangement
contemplated under Section 4(b) ("Fringe Benefits-Equity Plan"), this Agreement
embodies the entire agreement of the parties hereto respecting the matters
within its scope. This Agreement supersedes all prior agreements of the parties
hereto on the subject matter hereof. Any prior negotiations, correspondence,
agreements, proposals, or understandings relating to the subject matter hereof
shall he deemed to be merged into this Agreement and to the extent inconsistent
herewith, such negotiations, correspondence, agreements, proposals, or
understandings shall be deemed to be of no force or effect. There are no
representations, warranties, or agreements, whether express or implied, or oral
or written, with respect to the subject matter hereof, except as set forth
herein.
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This Agreement shall not be modified by any oral agreement, either express
or implied, and all modifications hereof shall be in writing and be signed by
the parties hereto. The provisions of this and the immediately preceding
sentence themselves may not be modified, either orally or by conduct, either
express or implied, and it is the declared intention of the parties hereto that
no provision of this Agreement, including said two sentences, shall be
modifiable in any way or manner whatsoever other than through a written document
signed by the parties hereto.
16. WAIVER. Failure to insist upon strict compliance with any of the
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terms, covenants, or conditions hereof shall not be deemed a waiver of such
term, covenant, or condition, nor shall any waiver or relinquishment of, or
failure to insist upon strict compliance with, any right or power hereunder at
any one or more times be deemed a waiver or relinquishment of such right or
power at any other time or times.
17. NUMBER AND GENDER. Where the context requires, the singular shall
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include the plural, the plural shall include the singular, and any gender shall
include all other genders.
18. SECTION HEADINGS. The section headings in this Agreement are for the
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purpose of convenience only and shall not limit or otherwise affect any of the
terms hereof.
19. DISPUTE RESOLUTION.
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(a) NEGOTIATION AND MEDIATION. In the event any dispute arises
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hereunder, the parties shall first attempt to resolve the dispute by negotiation
in good faith. If the dispute cannot be timely resolved through negotiation, the
parties will, before resorting to any of their remedies at law or in equity, try
to settle the dispute in good faith by mediation in Salt Lake City, Utah or such
other location as the parties may agree, under the then operative mediation
rules of the American Arbitration Association or such other mediation tribunal
or private mediator or medication services provider as the parties agree. The
mediator shall be such person as the parties mutually agree, but if the parties
have failed to agree on a mediator within seven (7) days after the date on which
any party demands that the parties proceed to mediation, the mediator shall be
selected by the American Arbitration Association or such other mediation
services provider as the parties agree.
(b) OTHER REMEDIES. Failing settlement of the dispute by negotiation
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or mediation, the parties shall, unless they mutually agree to resolve the
dispute finally by arbitration, be entitled to pursue their legal and equitable
remedies (subject to the provisions of Section 20 ("Liquidated Damages-Breach by
the Company") in any court having jurisdiction.
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20. LIQUIDATED DAMAGES-BREACH BY THE COMPANY. Because the damages suffered
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by Employee in such an event would be difficult or impossible to estimate,
establish, ascertain, or prove, and in order to provide Employee with a remedy
in such an event without the necessity and associated cost of Employee having to
establish or prove the damages suffered by Employee as a result thereof (which
remedy the parties hereto have and do agree would be appropriate and adequate
compensation to Employee in such event), in the event that this Agreement and
Employee's employment hereunder shall be terminated (whether by the Company or
Employee) and thereafter Employee shall prevail in any dispute between Employee
and the Company relative to, involving, or concerning the legality of or
justification for the termination of this Agreement and Employee's employment
hereunder and any other issues or matters directly or indirectly arising out of
or in connection with such termination and Employee's employment by the Company,
subject to Section 12 ("Non Competition") Employee shall be entitled to the
continued payment of the Base Salary as provided in Section 8(b) ("Termination
by the Company-Termination Without Cause") as liquidated and exclusive damages
and not as a penalty, and in such case this Agreement and Employee's employment
hereunder, shall for all purposes be treated as having been terminated by the
Company without 46 cause" pursuant to Section 8(b) ("Termination by the Company-
Termination Without Cause").
In the event Employee files any claim, complaint, charge, action, or
lawsuit against the Company or its employees, agents, officers, directors, or
any other person affiliated or associated with the Company, with any
governmental agency, any state or federal court, or any mediation or arbitration
body or group, for or with respect to a matter, claim, or incident, known or
unknown, which has occurred or arisen or which shall hereafter occur or arise
relative to, involving, or concerning the termination of this Agreement and
Employee's employment hereunder (whether as a result of action of Employee or
the Company) and any other issues or matters directly or indirectly arising out
of or in connection with such termination and Employee's employment by the
Company, and in such claim, complaint, action, charge, or lawsuit, Employee
alleges or asserts the right to recover, receive, or be awarded damages from the
Company or its employees, agents, officers, directors, or any other person
affiliated or associated with the Company in addition to or in lieu of the
liquidated damages expressly provided for in this Section 20, Employee hereby
stipulates, agrees, and consents to the dismissal or withdrawal, with prejudice,
of any such claim, complaint, action, charge, or lawsuit (collectively, a
"Dismissable Claim"). In the event that Employee files any Dismissable Claim,
Employee shall be liable to the party or parties against whom the Dismissable
Claim is filed (the "Nonfiling Party") and shall indemnify and save the
Nonfiling Party harmless from all costs and expenses, including, but not limited
to, attorneys fees, incurred by the Nonfiling Party and/or the Nonfiling Party s
officers, agents, employees, directors, and/or any other person affiliated or
associated with the Nonfiling Party, if any, in defending or responding to any
such Dismissable Claim, regardless of whether such defense or response is before
a state or federal court or administrative agency or a mediation or arbitration
body and regardless of who might ultimately be deemed to be the prevailing party
as to any such Dismissable Claim.
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21. ATTORNEY'S FEES. Employee and the Company agree that in any dispute
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resolution proceedings arising out of this Agreement, the prevailing party shall
be entitled to its or his reasonable attorney's fees and costs incurred by it or
his in connection with resolution of the dispute in addition to any other relief
granted.
22. INDEMNIFICATION. If Employee is made a party to, is threatened to be
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made a party to, or is otherwise involved in any action, suit, or proceeding,
whether civil, criminal, administrative or investigative (a "Proceeding") by
reason of the fact that he is or was a director, officer, or employee of the
Company or is or was serving at the request of the Company as a director,
officer, employee, or agent of another corporation or of a partnership, joint
venture, trust, or other enterprise, including service with respect to employee
benefit plans, whether before, during or after expiration or termination of this
Agreement, the Company shall indemnify and hold Employee harmless to the fullest
extent authorized by the Delaware General Corporation Law, as the same exists or
may hereafter be amended (but, in the case of any such amendment, only to the
extent that such amendment permits the Company to provide broader
indemnification rights than such law permitted the Company to provide prior to
such amendment), against all expense, liability, and loss (including attorneys
fees, judgment fines, ERISA excise taxes or penalties and amounts paid in
settlement) reasonably incurred or suffered by Employee in connection therewith,
and such indemnification shall continue after Employee ceases to be a director,
officer, employee, or agent of the Company and shall inure to the benefit of
Employee's heirs, executors, and administrators. The right to indemnification
conferred hereby shall include the right to be paid by the Company the
reasonable expenses incurred in defending any Proceeding in advance of its final
disposition as such expenses are incurred. The indernnification provided herein
shall not be deemed exclusive of any other rights to which Employee may be
entitled under the Certificate of Incorporation, Bylaws, any agreement, or vote
of stockholders or disinterested directors of the Company, or otherwise, both as
to action in his official capacity and as to action in another capacity while
holding such office or position, and shall continue with respect to action in
such capacities even if Employee has thereafter ceased to be a director,
officer, employee, or agent of the Company, and shall inure to the benefit of
Employee's heirs, executors and administrators. Except in the case of fraudulent
conduct or theft, embezzlement, or other criminal misappropriation of funds by
Employee, then nothing in this Agreement waives the Company's obligations under
this paragraph, even if Employee is terminated.
23. SEVERABILITY. In the event that a court of competent jurisdiction
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determines that any portion of this Agreement is in violation of any statute or
public policy, then only the portions of this Agreement which violate such
statute or public policy shall be stricken, All portions of this Agreement which
do not violate any statute or public policy shall continue in full force and
effect. Furthermore, any court order striking any portion of this Agreement
shall modify the stricken terms as narrowly as possible to give as much effect
as possible to the intentions of the parties under this Agreement.
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24. NOTICES. All notices under this Agreement shall be in writing and
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shall be either personally delivered or mailed postage prepaid, by certified
mail, return receipt requested, (a) if to the Company, to it at 0000 Xxxx
Xxxxxxxxxx Xxxxxxx, Xxxxx 000, Xxxx Xxxx Xxxx, Xxxx 00000 Attention: President
or (b) if to Employee to him at 0000 Xxxx Xxxxxxxxxx Xxxxxxx, Xxxxx 000, Xxxx
Xxxx Xxxx, Xxxx 00000 by the same means, or in either party's case to such other
address or to the attention of such person as the party has specified by prior
written notice to the other party. Notice shall be effective when personally
delivered, or five (5) business days after being so mailed.
25. COUNTERPARTS. This Agreement may be executed in counterparts
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collectively containing the signatures of each of the parties.
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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed b
duly authorized officer, and Employee has hereunto signed this Agreement, on the
date first written above.
XXX. XXXXXX' ORIGINAL COOKIES, INC.,
a Delaware Corporation (the "Company")
By:________________________________
Its:_________________________________
____________________________________
XXXX X. XXXXXX ("Employee")
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