Exhibit 10.49
EMPLOYMENT AGREEMENT
This Employment Agreement, effective as of this 14th day of December,
1999 (the "Effective Date"), is by and among IMPAX LABORATORIES, INC., a
Delaware corporation, with a business address at 00000 Xxxxxxxx Xxx., Xxxxxxx,
Xxxxxxxxxx 00000 (the "Company") and XXXXX X. XXXXXXX, with a mailing address at
Castor and Kensington Avenues, Philadelphia, Pennsylvania 19124-5694
("Executive").
NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein set forth, the Company and Executive agree as follows:
1. Nature of Employment.
1.1 Duties and Responsibilities. Executive shall serve as the
Co-Chief Executive Officer of the Company during the term of this Agreement, and
use his to promote the interests of the Company and shall devote his full time
and efforts to its business and affairs. Executive shall have general executive
powers and active management over the property, business, and affairs of the
Company, subject always to the direction of the Board of Directors (the "Board")
or its designee.
1.2 Other Business Activities. Executive will devote his full
professional time, attention and effort to Company's business. Notwithstanding
the foregoing, Executive shall be entitled to participate in other professional
and business activities to the extent such activities are reasonably likely to
enhance Executive's ability to perform his obligations hereunder, provided that
such activities do not compete with the business of the Company and do not
unreasonably interfere with the then performance of his duties hereunder.
1.3 Board of Directors Member. Each year during the term of
this Agreement, the Board of Directors of the Company (the "Board") shall
designate Executive as one of management's slate of candidates to the Board,
shall recommend Executive as a Director to its shareholders, and shall otherwise
use its best efforts to have Executive elected as a Director and to have him
remain as a Director during the entire term of this Agreement, in all instances
subject to satisfaction by the Board of Directors of its fiduciary duties and
obligations.
2. Compensation.
2.1 Salary. Executive's salary shall be at an initial annual
rate of One Hundred Seventy-Five Thousand Dollars ($175,000.00), subject to
withholding and further
subject to discretionary increases in accordance with the Company's normal
review procedures and policies. The salary shall be paid in substantially equal
installments in accordance with the Company's standard payroll practices, as in
effect from time to time.
2.2 Bonus. Subject to the achievement of certain short-term
and long-term performance goals established by the Board of Directors of the
Company from time to time, Executive shall be paid quarterly and annual bonuses,
payable in stock and/or cash, to be determined by the Board of Directors of this
Company or its Compensation Committee. Each such bonus shall be paid at the same
time as, and be equal to, the bonus paid to Xxxxx Xxx, Ph.D., and Xxxxxxx Xxxxx,
Ph.D. for such period.
2.3 Medical Insurance and Other Benefits.. Executive shall be
entitled to receive full health, dental, vision, and disability insurance, as
well as any other benefits customarily offered to other senior executive
officers of the Company, all upon terms no less favorable to Executive, with all
premiums and costs to be paid by the Company. The Company shall also provide to
Executive, at Company's expense, life insurance coverage at standard premium
rates having a death benefit payable to a beneficiary selected by the Executive
equal to $1,000,000 and disability insurance at standard premium rates which
provides salary replacement benefits, not to exceed $250,000 in the aggregate,
in the event Executive becomes incapacitated. Executive shall be required to
undergo a yearly physical examination, at Company's expense, with a physician of
Executive's choosing, and upon Company's request, deliver a copy of such
physician's report from such examination.
2.4 Vacation. Executive shall be entitled to receive four (4)
weeks of paid vacation time annually, such vacation shall accrue daily, provided
however, that in the event the total vacation accrual ever reaches four (4)
weeks, then no further vacation time will accrue until Executive has used his
current annual allotment. Executive may not receive pay rather than vacation
except when Executive leaves the Company. Executive may schedule his vacations
at his discretion so long as the timing of such vacations does not interfere
with his responsibilities to the Company.
2.5 Reimbursement of Expenses. The Company shall reimburse
Executive for all out-of-pocket expenses incurred by Executive in performing his
obligations hereunder within thirty (30) days after the date on which Executive
delivers to the Company an itemized statement, accompanied by appropriate
receipts to the extent available, describing the reimbursable expenses incurred.
The expenses to be
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reimbursed include, without limitation, telephone, fax, air freight and travel
related expenses. To the extent permitted by law, the Company will not withhold
Philadelphia city wage taxes for the days Executive travels out of town on
business.
2.6 Stock Option Grant. On or before the execution and
delivery of this Agreement, the Company shall grant Executive a stock option to
purchase 270,000 shares of Common Stock, at a price per share equal to the
closing market price of the Common Stock on the date the option is: granted.
Shares covered by the option shall vest and become exercisable on the following
schedule: (i) first year - 0%; (ii) second year - 10%; (iii) third year -40%;
and (iv) fourth year - 50%. Subject to the foregoing, the option shall be based
upon such terms and conditions as may be approved by the Board of Directors (or
an appropriate committee thereof).
3. Term and Termination.
3.1 Term. The term of this Agreement shall commence on the
Effective Date and, unless terminated in accordance with this Section 3, shall
continue until the third anniversary of the Effective Date, and thereafter shall
be automatically renewed for successive periods of one year each, unless
terminated by either party by written notice of termination delivered to the
other party at least six (6) months prior to the expiration date of the initial
term or any renewal term of this Agreement (the "Term").
3.2 Termination by the Company. The Company shall have the
right to terminate this Agreement (i) for Cause, as defined below, at any time
and without prior notice, or (ii) for any other reason on thirty (30) days
written notice to Executive.
3.2.1 Termination for Cause. The phrase "Cause"
means any of the following:
(i) any material breach by Executive of
any provision of Sections 5, 6, 7 or 8 of this Agreement;
(ii) any material breach of any other
provision of this Agreement by Executive (other than any such breach resulting
from Executive's incapacity due to physical or mental illness, which shall be
governed by Section 3.2.2 hereof), including without limitation the failure to
satisfactorily perform his duties as provided herein, if that breach is not
remedied within thirty (30) days after written notice to Executive describing
the acts alleged to constitute Cause;
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(iii) any act of fraud, misappropriation,
embezzlement or similar willful and malicious conduct by Executive against the
Company; or
(iv) indictment of Executive for a felony or any conviction
of, or guilty plea by Executive to, a crime involving moral turpitude if that
crime of moral turpitude tends or would reasonably tend to bring the Company
into disrepute.
3.2.2 Termination for Death or Disability. For
purposes hereof, the term "disability" shall mean such physical or mental
illness as shall render Executive incapable of substantially performing his
duties hereunder on a regular basis at the Company's offices for a period of
three (3) consecutive months or for a period of six (6) months in any
twelve-month period, all as determined by a physician or psychiatrist, as the
case may be, selected by the Company.
3.3 Termination by the Executive. Executive may terminate this
Agreement for any reason upon thirty (30) days advance written notice to the
Company.
4. Termination Payments.
4.1 No Payments. In the event of any termination of this
Agreement by Company for Cause, or by Executive without Good Reason, the Company
shall have no further payment obligations to Executive hereunder, except for
wages and benefits accrued to date and/or provided by applicable law.
4.2 Continued Payments. If the Company terminates this
Agreement for any reason other than for Cause, or Executive terminates this
Agreement for Good Reason and in accordance with Section 3.3, then in lieu of
any other payments otherwise required hereunder, the Company shall, subject to
Executive's compliance with Sections 5, 6, 7 and 8 hereof, pay Executive, as
liquidated damages and not as a penalty, (a) within fifteen (15) days after the
termination date, all accrued and unpaid salary and benefits (including accrued
but unused vacation time) through the termination date and (b) the lesser of (i)
an amount equal to his salary payments at the time of the termination, in
accordance with the Company's then payment policy, and benefits provided for
herein during the six-month period following the termination date, and (ii) the
entire amount of the salary remaining due and payable from the date of such
termination to the scheduled expiration of this Agreement; provided, however,
that if such termination occurs prior to the first anniversary of the Effective
Date, then in addition to items (a) and (b) above, Executive shall be entitled
to continue to receive, in accordance with the
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Company's then payment policy, an amount equal to his salary payments and, to
the extent Executive is not otherwise employed, health benefits, until the first
anniversary of the Effective Date. In the event that this Agreement is
terminated due to the death or disability of Executive, Company shall pay to
Executive a portion of any bonus otherwise payable to Executive in accordance
with Section 2.2 hereof, prorated to reflect any early termination of this
Agreement relative to the performance period to which the bonus relates.
4.3 Continued Medical Coverage. If the Company terminates this
Agreement for any reason other than for Cause, or Executive terminates this
Agreement for Good Reason and in accordance with Section 3.3, then Company shall
maintain, at Company's cost, Executive's health, dental, vision and disability
insurance described in Section 2.3 hereof until the first to occur of (i) the
expiration of eighteen (18) months following such termination; or (ii) Executive
accepts employment which provides health insurance. If the Company terminates
this Agreement for Cause, or Executive terminates this Agreement for any reason
other than Good Reason, Executive shall have the right to maintain, at
Executive's cost, the health, dental, vision and disability insurance described
in Section 2.3 hereof, for a period not to exceed eighteen (18) months or such
longer period as may be required by applicable law, all to the extent permitted
by the applicable insurance carrier.
4.4 Certain Definitions.
4.4.1 Good Reason. For purposes of this Agreement,
"Good Reason" means (i) the assignment to Executive of any duties or the
substantial reduction of Executive's duties, either of which is inconsistent
with Executive's position as Co-Chief Executive Officer; (ii) any change in
Executive's reporting relationship which results in his not reporting to a
member of the Board of Directors of the Company; (iii) a material reduction in
Executive's salary or benefits not agreed to by Executive; (iv) a requirement of
Executive to relocate to an office that would increase Executive's one-way
commute distance by more than fifty (50) miles; or (v) a Change in Control of
Company, as hereinafter defined.
4.4.2 Change in Control of Company. For purposes of
this Agreement, "Change in Control of Company" shall mean the occurrence of any
of the following:
(i) Any person or entity acquires ownership
or control, directly or indirectly, of securities of the Company (or a successor
to the Company) representing fifty percent (50%) or more of the combined voting
power of the
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then outstanding securities of the Company or such successor;
(ii) (a) a sale or disposition of assets of
the Company involving fifty percent (50%) or more in value of the assets of the
Company; (b) any merger or reorganization of Company (whether or not another
entity is the survivor), in which the Company's shareholders (immediately prior
to the transaction) do not own (immediately after the transaction), either
directly or indirectly, at least fifty-one percent (51%) of the voting power of
the surviving or successor corporation; (c) any transaction pursuant to which
all of the shareholders of the Company immediately prior to the transaction,
hold (immediately after the transaction) less than fifty-one percent (51%) of
the combined voting power of the Company or any successor Company; (d) any other
event or transaction which the Board determines, in its discretion, would
materially alter the structure, ownership or control of the Company;
provided, however, that the consummation of the transactions contemplated by the
Agreement and Plan of Merger, dated as of July, 1999, between Indigo, Inc., a
California corporation, and Gemstone, a Delaware corporation, shall not
constitute a Change in Control.
5. Proprietary Information and Inventions. Executive acknowledges that
during his employment he may create, make, derive, produce, obtain, make known
or learn about certain information which has commercial value in the business in
which the Company is engaged and which is treated by the Company as
confidential. This information may have been created, discovered or developed by
the Company or the Executive, in the course and scope of his employment, or
otherwise received by the Company from third parties subject to a duty to
maintain the confidentiality of such information. All such information is
hereinafter called "Proprietary Information."
5.1 Proprietary Information Defined. By way of illustration,
but not limitation, Proprietary Information includes trade secrets, ideas,
processes, drawings, specifications, data, formulations, computer programs,
software, other original works of authorship, know-how, improvements,
discoveries, developments, designs, innovations, techniques, business
development strategies, marketing plans, strategies, forecasts, new products,
unpublished financial statements, budgets, projections, licenses, prices, costs,
strategic alliances, ventures, and customer and supplier lists. The foregoing
obligations of confidentiality and non-use shall not apply to any Proprietary
Information that:
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5.1.1 was known to the Executive prior to the date of
disclosure pursuant to this Agreement and not obtained or derived directly or
indirectly from the Company;
5.1.2 is or becomes public or available to the
general public otherwise than through the act or default of the Executive;
5.1.3 is obtained subsequent to any disclosure under
this Agreement from a third party who is lawfully in possession of same and
which information is not subject to any confidential or non-use obligations owed
to the Company or others;
5.1.4 has been furnished by the Company to a third
party without similar restrictions on disclosure; or
5.1.5 is required to be disclosed pursuant to
requirements of Federal, state or local statute, regulation or court order,
provided that Executive delivers prior written notice to Company of such pending
disclosure, and gives Company a reasonable opportunity to oppose such disclosure
with the applicable authority.
5.2 Ownership of Proprietary Information. Executive
acknowledges that all Proprietary Information shall be the sole property of the
Company and its assignees (or, in some cases, its clients, suppliers or
customers), and the Company and its assignees (or, in some cases, its clients,
suppliers or customers) shall be the sole owner of all patents, copyrights,
trade secrets, and all other intellectual property rights in connection
therewith (collectively "Intellectual Property Rights"). The Company's ownership
includes any and all modifications, corrections, updates, changes, improvements,
derivatives and enhancements to the Proprietary Information and the Intellectual
Property Rights therein.
5.3 Non-Disclosure. At all times, both during Executive's
employment and after his termination, Executive shall keep in strictest
confidence and trust all Proprietary Information, and shall not reproduce or
disclose any Proprietary Information, or use such Proprietary Information for
his own account or the account of any third party, without the written consent
of the Company, except as may be necessary in the ordinary course of performing
duties as an employee of the Company.
5.4 Assignment of Inventions. Executive hereby assigns and
transfers to the Company, Executive's entire right, title and interest, now or
hereafter acquired, in and to all Proprietary Information and Intellectual
Property Rights therein, discovered, originated, made or conceived or learned by
Executive either alone or jointly with others,
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during the period of Executive's employment which result, directly or
indirectly, from (i) the use of premises or equipment owned, leased or
contracted for by the Company or supplies or Proprietary Information of the
Company, or (ii) work conducted on the time of the Company, or (iii) work
performed for the Company. Executive further acknowledges that all original
works of authorship which are made by Executive (solely or jointly with others)
within the scope of and during the period of his employment with the Company and
which are protectible by copyright are "works made for hire," as that term is
defined in the United States Copyright Act. Executive understands and agrees
that the decision whether or not to commercialize or market any invention
developed by him solely or jointly with others is within the Company's sole
discretion and for the Company's sole benefit and that no royalty will be due to
him as a result of the Company's efforts to commercialize or market any such
invention. Executive hereby waives all moral rights which he may have or
hereafter acquire in any Proprietary Information and any Intellectual Property
Rights therein. Executive will, at the Company's request, promptly execute a
written assignment of title to the Company for any Proprietary Information and
Intellectual Property Rights therein, and a written waiver of all moral rights
therein, and Executive will preserve all such Proprietary Information as
confidential information of the Company.
5.5 Notice of Inventions; Execution of Documents. Executive
agrees to give Company prompt written notice of his acquisition or creation of
any Proprietary Information. Executive further agrees as to all Proprietary
Information to assist the Company in every proper way (but at the Company's
expense) to obtain and from time to time enforce patents, copyrights and other
rights and protections relating to inventions in any and all countries, and to
that end agrees to execute all documents for use in applying for and obtaining
such patents, copyrights and other rights and protections on and enforcing
inventions as the Company may desire, together with any assignments thereof to
the Company or persons designated by it. Executive's obligations to assist the
Company in obtaining and enforcing patents, copyrights and other rights and
protections relating to Proprietary Information in any and all countries shall
continue beyond the termination of employment, but the Company shall compensate
Executive at a reasonable rate after such termination for time actually spent,
at the Company's request, on such assistance. In the event the Company is
unable, after reasonable effort, to secure signatures on any documents needed to
effect any assignment hereunder or to apply for or prosecute any patent,
copyright or other right or protection relating to an invention, whether because
of physical or mental incapacity or for any other reason whatsoever, Executive
hereby irrevocably designates and appoints the Company and its duly authorized
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officers and agents as his agent and attorney-in-fact, to act for and in his
behalf and stead, to execute and file any such application or applications and
to do all other lawfully permitted acts to further the prosecution and issuance
of patents, copyrights or similar protections thereon with the same legal force
and effect as if executed by him.
5.6 Return of Proprietary Information. All Proprietary
Information, including, without limitation, all written materials, records and
documents or other tangible materials made by Executive or coming into his
possession as a result of his employment with Company concerning the business or
affairs of Company shall be the sole property of Company; and, upon the
termination of his employment with Company or upon the request of Company,
Executive shall promptly deliver the same to Company.
5.7 Third Party Information. Executive 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. Executive agrees that Executive owes the Company and
such third parties, during the term of this Agreement and thereafter, a duty to
hold all such confidential or proprietary information in the strictest
confidence and not to disclose it to any person, firm or corporation or to use
it except as necessary in carrying out the services for the Company consistent
with the Company's agreement with such third party.
6. Prior Inventions. Executive understands that all inventions, if any,
patented or unpatented, which Executive made prior to Executive's employment are
excluded from the scope of this Agreement. To preclude any possible uncertainty,
Executive has set forth on item 1 of Exhibit A attached hereto a complete list
of all of Executive's prior inventions, including numbers of all patents and
patent applications, and a brief description of all unpatented inventions which
are not the property of a previous employer. Executive represents and covenants
that the list is complete and that, if no items are on the list, Executive has
no such prior inventions. Executive agrees to notify the Company in writing
before Executive makes any disclosure or performs any work on behalf of the
Company which appears to threaten or conflict with proprietary rights which
Executive claims in any invention or idea. Executive agrees that if in the
course of performing services hereunder, Executive incorporates into the
Company's Proprietary Information or otherwise utilizes any invention,
improvement, development, concept, discovery or other proprietary information
owned by Executive or in which
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Executive has an interest, the Company is hereby granted and shall have a
non-exclusive, royalty-free, perpetual, irrevocable, worldwide license to make,
have made, modify, use and sell such item as part of or in connection with such
Proprietary Information.
7. Conflicting Obligations.
7.1 Trade Secrets of Others. Executive represents that he has
not brought, and will not bring with him to Company, disclose to Company, or use
in the performance of his responsibilities, any devices, materials or documents
of a former employer or other party that are proprietary or are not generally
available to the public, unless he has obtained express written authorization
from such party for their possession and use. The only devices, materials or
documents of a former employer or other party that are proprietary or are not
generally available to the public that Executive will bring to the Company, if
any, are identified on item 2 of Exhibit A attached hereto, and as to each such
item, Executive represents that Executive has obtained express written
authorization for their possession and use and has delivered a copy of such
written authorization to the Company.
7.2 Conflicting Confidentiality Agreements. Executive agrees
that during this employment, Executive will not breach any obligation of
confidentiality Executive has to former employers, clients, and others.
Executive represents that Executive's performance under the terms of this
Agreement, as Executive to the Company, does not and will not breach any
agreement to keep in confidence proprietary information acquired by Executive in
confidence or in trust. Executive has neither entered into, nor shall enter
into, any agreement, either written or oral, in conflict herewith.
8. Covenant Not to Compete; Non-Interference.
8.1 During the term of this Agreement, Executive shall not,
directly or indirectly, engage or participate in any business, which is in
competition with any business in which the Company conducts or pursues during
the term of this Agreement. Moreover, in view of Executive's access to the
Company's trade secrets and proprietary information and know-how, Executive
further agrees that Executive will not, without the Company's prior written
consent, design or develop identical or substantially similar designs as those
developed for the Company during his employment for himself or any third party
during the term of this Agreement and for a period of twelve (12) months
following the termination of this Agreement.
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8.2 Executive covenants and agrees that he will not, during
the term of this Agreement and continuing until the second anniversary of the
termination of this Agreement, whether for his own account or for the account of
any other person, interfere with the relationship of the Company with, or
endeavor to entice away from the Company, any person who at any time during the
term of Executive's engagement with the Company was an employee of the Company.
Furthermore, Executive covenants and agrees that he will not, whether during the
term of this Agreement or thereafter, whether for his own account or for the
account of any other person, interfere with the relationship of the Company
with, or endeavor to entice away from the Company, any person who any time
during the term of Executive's engagement with Company was a customer, supplier
or business partner of Company.
9. Key Man Insurance. The Company may, in its sole discretion, at any
time after the date hereof, apply for and procure as owner for its benefit, life
insurance on Executive, in such amount and in such form or forms as the
Corporation may determine. Executive shall, at the Company's request, subject to
such medical examinations, supply such information and execute such documents as
may be required by the insurance company or companies to whom the Company has
applied for such insurance.
10. General Provisions.
10.1 Mediation and Arbitration.
10.1.1 Mediation. No party to this Agreement may
initiate litigation or arbitration with regard to any dispute with respect to
this Agreement until after all remedies set forth in this Section have been
exhausted. In the event of any dispute arising over this Agreement, any party
shall have the right by giving written notice to the other parties hereto (the
"Mediation Notice") to initiate non-binding mediation to be conducted by a
mediator mutually agreed to by the parties or, in the event the parties are
unable to reach such agreement within thirty (30) days following the delivery of
the Mediation Notice, by a mediator appointed by the American Arbitration
Association ("AAA") in accordance with the rules and regulations of the AAA, or
by any other body mutually agreed upon by the parties. Mediation shall take
place at Hayward, California or any other location mutually agreeable to the
parties. In the event the parties resolve their dispute in mediation, they shall
enter into a written agreement, which shall be binding on all parties thereto.
10.1.2 EXCEPT AS PROVIDED IN SECTIONS 10.1 AND 10.10
HEREOF, EXECUTIVE AND COMPANY AGREE THAT ANY DISPUTE OR CONTROVERSY ARISING OUT
OF, OR RELATING TO THIS
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AGREEMENT SHALL BE SETTLED BY ARBITRATION TO BE HELD IN ALAMEDA COUNTY,
CALIFORNIA, IN ACCORDANCE WITH THE EMPLOYMENT DISPUTE RESOLUTION RULES THEN IN
EFFECT OF THE AMERICAN ARBITRATION ASSOCIATION. THE ARBITRATOR MAY GRANT
INJUNCTIONS OR OTHER RELIEF IN SUCH DISPUTE OR CONTROVERSY. THE DECISION OF THE
ARBITRATOR SHALL BE FINAL, CONCLUSIVE AND BINDING ON THE PARTIES TO THE
ARBITRATION. JUDGMENT MAY BE ENTERED ON THE ARBITRATOR'S DECISION IN ANY COURT
HAVING JURISDICTION.
10.1.3 THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER
OF EXECUTIVE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL
DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP (EXCEPT
AS PROVIDED IN SECTION 7 HEREOF), INCLUDING, WITHOUT LIMITATION, THE FOLLOWING
CLAIMS:
10.1.3(a) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE
OF EMPLOYMENT, BREACH OF CONTRACT, EXPRESS OR IMPLIED, BREACH OF THE COVENANT OF
GOOD FAITH AND FAIR DEALING, NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL
DISTRESS, MISREPRESENTATION, INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC
ADVANTAGE, DEFAMATION AND LIBEL;
10.1.3(b) ANY AND ALL CLAIMS FOR VIOLATION OF ANY
FEDERAL, STATE OR MUNICIPAL STATUTE, INCLUDING, WITHOUT LIMITATION, TITLE VII OF
THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF
1990, THE FAIR LABOR STANDARDS ACT; AND
10.1.3(c) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER
LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.
10.1.4 EXECUTIVE UNDERSTAND THAT EACH PARTY'S
COVENANT TO RESOLVE DISPUTES BY ARBITRATION, AS OPPOSED TO THE JUDICIAL SYSTEM
IS CONSIDERATION FOR THE OTHER PARTY'S PROMISE. EXECUTIVE FURTHER UNDERSTANDS
THAT HE HAS BEEN OFFERED EMPLOYMENT BY THE COMPANY IN CONSIDERATION OF HIS
PROMISE TO ARBITRATE DISPUTES.
10.2. Notification of New Employer. In the event that
Executive leaves the employ of the Company, Executive hereby consents to
notification by the Company to Executive's new employer about his rights and
obligations under this Agreement.
10.3 Notices. Except as expressly provided herein, all
notices, requests or other communications required hereunder shall be in writing
and shall be given personal delivery, national overnight courier service, or by
U.S. mail, certified or registered, postage prepaid, return
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receipt requested, addressed to the respective party at the applicable address
set forth above, or to any party at such other addresses as shall be specified
in writing by such party to the other parties in accordance with the terms and
conditions of this Section. All notices, requests or communications shall be
deemed effective upon personal delivery, or five (5) days following deposit in
the United States mail, or two (2) business days following deposit with any
national overnight courier service.
10.4 Jurisdiction, Venue and Governing Law. This Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of California (regardless of that jurisdiction or any other
jurisdiction's choice of law principles). To the extent permitted by law and
except as otherwise provided in Section 10.1 hereof, the parties hereto agree
that all actions or proceedings arising in connection herewith, shall be
litigated in the state and federal courts located in the State of California,
and each party hereby waives any right it may have to assert the doctrine of
Forum Non Conveniens or to object to venue. The parties each hereby stipulate
that the state and federal courts located in the County of Alameda, State of
California, shall have personal jurisdiction and venue over each party for the
purpose of litigating any such dispute, controversy or proceeding arising out of
or related to this Agreement. To the extent permitted by law, service of process
sufficient for personal jurisdiction in any action against either party may be
made by registered or certified mail, return receipt requested.
10.5 No Assignment. This Agreement is personal to Executive,
and Executive may not assign any rights or delegate any responsibilities
hereunder without the prior approval of the Company.
10.6 Entire Agreement. This Agreement, including the exhibit
which is referenced herein and incorporated by this reference, is the entire
agreement between the Company and Executive with respect to the subject matter
hereof and cancels and supersedes any and all prior agreements regarding the
subject matter hereof between the parties, including without limitation that
certain Employment Agreement, dated March 25, 1998, between Global
Pharmaceutical Corporation and Executive. This Agreement shall be binding upon
and inure to the benefit of the parties and their respective successors, heirs
and permitted assigns. This Agreement may not be altered, modified, changed or
discharged except in writing signed by both the parties.
10.7 Survival. Sections 4.2, 4.3, 5, 6, 7, 8 and 10, each
inclusive, shall survive termination or expiration of this Agreement.
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10.8 Validity. If any one or more of the provisions (or any
part thereof) of this Agreement shall be held to be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions (or any part thereof) shall not in any way be affected or
impaired thereby.
10.9 No Waiver of Rights. The delay or failure of either party
to enforce at any time any provision of this Agreement shall in no way be
considered a waiver of any such provision, or any other provision, of this
Agreement. No waiver of, or delay or failure to enforce any provision of this
Agreement shall in any way be considered a continuing waiver or be construed as
a subsequent waiver of any such provision, or any other provision of this
Agreement.
10.10 Equitable Remedies. Employee specifically acknowledges
that any violation of Section 5, 6, 7 or 8 of this Agreement could cause
irreparable injury to Company and its business and property. Employee,
therefore, agrees that in the event of his breach of any of the terms and
conditions of Section 5, 6, 7 or 8 of this Agreement, Company shall be entitled,
if it so elects, to institute and prosecute proceedings in any court of
competent jurisdiction, either at law or in equity, to enjoin him from further
violation of such provisions. The remedies provided herein shall be cumulative
and in addition to any and all other remedies which either party may have at law
or in equity.
10.11 Attorneys' Fees. The prevailing party shall be entitled
to recover from the losing party its attorneys' fees and costs incurred in any
action or proceeding, including arbitration, brought to interpret this Agreement
or to enforce any right arising out of this Agreement. For purposes of this
Section, the prevailing party shall be that party that most closely obtains the
relief sought by it.
10.12 No Waiver of Rights. The delay or failure of either
party to enforce at any time any provision of this Agreement shall in no way be
considered a waiver of any such provision, or any other provision, of this
Agreement. No waiver of, or delay or failure to enforce any provision of this
Agreement shall in any way be considered a continuing waiver or be construed as
a subsequent waiver of any such provision, or any other provision of this
Agreement.
10.13 EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD THE OPPORTUNITY
TO CONSULT WITH THE ADVISOR OF HIS CHOICE AND THAT HE HAS FREELY AND VOLUNTARILY
ENTERED INTO THIS AGREEMENT.
14
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year written below.
IMPAX LABORATORIES, INC.
Date: December 14, 1999 By: /s/ [ILLEGIBLE]
----------------- --------------------------------
------------------------------------
(Print Name and Title)
Date: December 14. 1999 /s/ Xxxxx X. Xxxxxxx
----------------- ------------------------------------
Xxxxx X. Xxxxxxx
15
EXHIBIT A
---------
IMPAX LABORATORIES, INC.,
a Delaware corporation
00000 Xxxxxxxx Xxx.
Xxxxxxx, XX 00000
Dear Sir or Madam:
1. The following is a complete list of all inventions or improvements
relevant to the subject matter of my employment with Impax Laboratories, Inc., a
Delaware corporation (the "Company"), that have been made or conceived or first
reduced to practice by me, alone or jointly with others, prior to my engagement
by the Company:
[ ] No inventions or improvements.
[ ] See below:
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[ ] Additional sheets attached.
2. I propose to bring to my employment (or consulting, if applicable)
the following devices, materials and documents of a former employer or other
party that are proprietary or are not generally available to the public, which
materials and documents may be used in my employment pursuant to the express
written authorization of my former employer or other party (a copy of which is
attached hereto):
[ ] No materials.
[ ] See below:
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16
