EMPLOYMENT AGREEMENT
EXHIBIT
10.1
This
Employment Agreement
(this
“Agreement”)
is made
and entered into by and between XXX.XXX, INC., a Minnesota corporation having
its principal executive offices located at the business address of 000 Xxxxxxxxx
Xxxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxx 00000 (the “Company”),
and
Xxxxxx X. Xxxxxxx, an individual residing at the address indicated in
Exhibit
1 (“Executive”).
Company and Executive enter into this Agreement as of the date they each have
signed it, but the Agreement shall be effective as of the date established
pursuant to Section 2.1, below.
Whereas,
Company
desires to employ Executive with the title indicated in Exhibit
1
and the
parties wish to establish certain terms and conditions of such employment by
entering into this Agreement; and
Whereas,
Executive desires to be employed with Company on the terms and conditions set
forth in this Agreement.
Now
Therefore, in
consideration of the premises and the mutual covenants and agreements contained
herein, the parties hereby agree as follows:
1. Employment;
Regular Compensation. Company
agrees to employ Executive with the title indicated in Exhibit
1
and
Executive agrees to serve in such capacity on the terms and conditions set
forth
in this Agreement. Company shall pay Executive an initial base salary (the
“Base
Salary”)
and
such other consideration as set forth in Exhibit
1.
The
Base Salary is expressed as an annual amount solely for reference purposes,
and,
if payable, shall be paid to Executive on a bi-weekly basis. In its sole
discretion, the Company may change Executive’s compensation.
2. Effective
Date; Indefinite Term.
2.1
This
Agreement shall be deemed in full force and effect as of March 31,
2006;
2.2 This
Agreement has an indefinite term, and Executive’s employment by Company
hereunder may be terminated at will by either party at any time, with or without
Cause (as defined in Section 6.1, below) or any reason, voluntary or
involuntary, and with or without prior notice. Certain provisions of this
Agreement, however, as more fully set forth in Section 5, below, provide for
the
payment of benefits to Executive upon the specified circumstances of termination
of Executive’s employment with Company, and certain other provisions, as more
fully set forth below in Section 11, below, may continue in effect beyond the
date of such termination. Executive expressly acknowledges and agrees that
employment with Company is on an “at will” basis, and that this Agreement does
not provide a guarantee of continued employment, notwithstanding any other
provision in this Agreement.
1
3. Duties.
Executive shall report to Xxxxxxx Xxxxxx, President and Chief Executive Officer,
or such other individual as may be designated from time to time by the Board
of
Directors (the “Board”).
Executive shall faithfully and diligently perform all such acts and duties,
and
furnish such services, as are assigned to Executive by such supervising officer
or such other individual as may be designated by the Board.
4. Efforts;
Conflicts of Interest.
During
Executive’s employment by Company, Executive shall devote his full business time
and efforts to Company and its business during normal business hours, and shall
safeguard and promote its lawful interests. During Executive’s employment by
Company, Executive shall not, either directly or indirectly, engage in or enter
into any business or perform any services for any other person, firm,
association, or corporation that conflicts with Executive’s efforts to Company
or with Company’s business interests, except for: (a) serving on the board of
directors of any other entity that is not in competition with Company (subject
to Company’s approval, which shall not be unreasonably withheld or delayed); (b)
activities approved in writing in advance by the Executive’s supervising officer
or the Board, which approval shall not be unreasonably withheld or delayed;
or
(c) passive investments in entities that do not involve Executive providing
any
advice or services to the businesses in which the investments are made, or
which
do not violate Company policy, including without limitation any policy relating
to conflicts of interest or business ethics.
5. Benefits
Upon Termination of Employment.
5.1 By
Company for Cause or by Executive Without Good Reason.
If
Executive’s employment is terminated by Company for Cause or by Executive
Without Good Reason (as defined in Section 6.5, below), then Company’s
obligation to pay compensation and benefits under this Agreement shall
immediately terminate, except that: (a) Company shall pay to Executive and,
if
applicable, Executive’s heirs, any earned but unpaid Base Salary through such
termination date; and (b) Company shall permit Executive to receive continuation
of the benefits as set forth in Section 5.5, below, to the extent applicable.
Under such circumstances, no further payments or benefits (except as otherwise
required by law) shall be provided to Executive. The terms “Cause” and “Without
Good Reason” shall have the meaning set forth in Section 6, below.
5.2 By
Company for Nonperformance Due to Disability.
If
Executive’s employment is terminated by Company for Nonperformance Due to
Disability, then Company’s obligation to pay compensation and benefits under
this Agreement shall immediately terminate, except that: (a) Company shall
pay
to Executive and, if applicable, Executive’s heirs, any earned but unpaid Base
Salary through such termination date; (b) Company shall provide Executive with
such other payments and benefits as may be permitted under the Company’s short-
or long-term disability plans, to the extent applicable, and subject to the
terms and conditions of such plans, including without limitation any eligibility
requirements; and (c) Company shall permit Executive to receive continuation
of
the benefits as set forth in Section 5.5, below, to the extent applicable.
The
term “Nonperformance Due to Disability” shall have the meaning set forth in
Section 6, below.
2
5.3 By
Company Other Than for Cause or by Executive for Good Reason.
If
Executive’s employment is terminated by Company other than for Cause or by
Executive for Good Reason (as defined in Section 6.3, below), then Company’s
obligation to pay compensation and benefits under this Agreement shall
immediately terminate, except that: (a) Company shall pay to Executive and,
if
applicable, Executive’s heirs, any earned but unpaid Base Salary through such
termination date; (b) Company shall pay to Executive any earned but unpaid
incentive compensation or bonuses through the termination date, subject to
the
terms of the applicable bonus plan, including without limitation any eligibility
requirements or any limitations on such payment under applicable law; (c)
Company shall permit Executive to receive continuation of the benefits as set
forth in Section 5.5, below, to the extent applicable; and (d) Company shall
pay
to Executive, as severance benefits, the amount specified on Exhibit 1 (the
“Severance
Benefits”).
The
Severance Benefits shall be paid in a lump sum, as soon as practicable following
such termination date, subject to the following conditions: (x) Executive and
Company shall execute a separation agreement which shall include a mutual waiver
and release of all claims related to Executive’s employment or any termination
thereof, within any applicable consideration or execution periods and in a
form
that is acceptable to Company; and (y) subject to confirmation by Company that
Executive does not later revoke such waiver and release of claims within any
revocation period required by applicable law.
5.4 Death
of Executive.
In the
event of Executive’s death, Executive’s employment and all other obligations
hereunder shall automatically terminate and the Company’s obligation to pay
compensation and benefits under this Agreement shall immediately terminate,
except that Company shall pay to Executive’s estate: (a) Executive’s Base Salary
through the end of the calendar month in which Executive’s death occurs; (b)
Executive’s earned but unpaid incentive compensation or bonuses through the date
of Executive’s death, subject to the terms and conditions of the applicable
Bonus Plan, including without limitation any eligibility requirements or any
limitations on such payment under applicable law; and (c) Company shall permit
Executive’s heirs to receive continuation of the benefits as set forth in
Section 5.5, below, to the extent applicable and allowed by law and subject
to
the terms of such plans.
5.5 Benefits
Continuation.
Upon
termination of Executive’s employment, Company shall permit Executive and, if
applicable, Executive’s family members, to continue to participate in Company’s
employee benefits plans, to the extent required or allowed by law and subject
to
the terms of such plans and applicable law.
6. Definitions.
6.1 “Cause”
shall
mean termination of Executive’s employment by Company for one or more of the
following reasons: (a) Executive has breached or threatens to breach a fiduciary
duty owed to Company; (b) Executive has engaged or threatens to engage in
dishonesty, fraud, gross negligence, willful malfeasance or other acts of
misconduct in the performance of Executive’s duties or during the course of
Executive’s employment; (c) upon the willful and continued failure by Executive
substantially to perform Executive’s duties with the Company (other than by
reason of Nonperformance Due to Disability as defined below); (d) Executive
has
willfully violated or threatens to violate Company policies, or has willfully
violated or threatens to violate any law, rule or regulation (other than traffic
violations or similar offenses) which result in material injury to Company;
or
(e) Executive has violated or threatens to violate the terms of Sections 4,
7,
or 8 of this Agreement or the material terms of the Confidentiality and
Non-Competition Agreement, or any other material breach of this
Agreement.
3
6.2 “Disability”
shall
have the meaning ascribed to such term or its variations, such as “Disabled,” in
Company’s long-term disability plan, or in the absence of such plan, a meaning
consistent with the definition of permanent and total disability under Section
22(e)(3) of the Internal Revenue Code of 1986, as amended.
6.3 “Good
Reason”
shall
mean that one or more of the following events has occurred and, after giving
Company written notice of the occurrence and of Executive’s intention to resign
from employment and Company not curing the event within 30 days of receipt
of
such written notice: (a) a substantial adverse change in Executive’s duties or
responsibilities, without Executive’s consent, including a substantial change in
Executive’s reporting structure; (b) a reduction in Executive’s Base Salary (at
the annualized rate), without Executive’s consent, by more than 25%; or (c) a
relocation of Executive’s principal place of employment by more than a 50 mile
radius surrounding Atlanta, Georgia, without Executive’s consent.
6.4 “Nonperformance
Due to Disability”
shall
mean that, if because of Disability, Executive is unable to perform the
essential functions of Executive’s job, with or without reasonable
accommodation, for a period of 30 consecutive days in any calendar
year.
6.5 “Without
Good Reason” shall
mean termination or resignation of Executive’s employment by Executive other
than for Good Reason.
7. Non-Disparagement.
Executive shall not at anytime make false, misleading or disparaging statements
about the Company, its parent, subsidiaries or affiliates, including any of
their products, services, management, directors, officers, employees, and
customers.
8. Confidential
Information and Covenants Not to Compete.
The
parties agree that Executive's services to Company are of a unique value and
that confidential and proprietary information about Company has been or will
be
obtained by, disclosed or otherwise made available to Executive as a result
of
Executive’s employment with Company. Accordingly, as a condition to Executive’s
employment, Executive and Company also are entering into the Confidentiality,
Invention Assignment, and Non-Competition Agreement attached hereto as
Exhibit
2
(the
"Confidentiality
and Non-Competition Agreement").
9. Dispute
Resolution Process. All
disputes between Executive and Company that otherwise could be resolved in
court
shall be resolved instead by the following alternative dispute resolution
process (the "Process").
4
9.1 Disputes
Covered. This
Process applies to all disputes between Executive and Company, including those
arising out of or related to this Agreement or Executive's employment by
Company. Disputes subject to this Process include but are not limited to pay
disputes, contract disputes, legal disputes, wrongful termination disputes,
and
discrimination, harassment or civil rights disputes. This Process applies to
disputes Executive may have with Company and also applies to disputes Executive
may have with any of Company's employees or agents so long as the person with
whom Executive has the dispute is also bound by or consents to this Process.
This Process applies regardless of when the dispute arises and will remain
in
effect after Executive's employment with Company ends, regardless of the reason
it ends. This Process does not apply, however, to any workers' compensation
or
unemployment compensation claims, to the extent applicable under the
circumstances.
9.2 Negotiation
and Mediation. Executive
and Company agree to attempt to resolve all disputes first by direct
negotiations. If direct negotiations are not successful, the parties shall
then
use mediation. They shall first attempt to agree upon a mediator. If unable
to
agree upon a mediator, the parties shall request and conduct mediation under
the
American Arbitration Association’s National Rules for the Resolution of
Employment Disputes. Unless otherwise agreed by the parties, any mediation
sessions shall be held in Atlanta, Georgia. Temporary or interim injunctive
relief may be sought without mediating first. Any failure to mediate shall
not
affect the validity of an arbitration award or the obligation to arbitrate.
In
any action arising out of this Agreement, the prevailing party shall be entitled
to be reimbursed for its reasonable legal fees and expenses.
9.3 Arbitration. If
the dispute is not resolved through negotiation and mediation, the parties
shall
request, and either party may demand, arbitration pursuant to the American
Arbitration Association’s National Rules for the Resolution of Employment
Disputes. Unless otherwise agreed by the parties, any arbitration hearing shall
be held in Atlanta, Georgia. The decision of the arbitrator shall be final
and
binding on the parties and on all persons and entities claiming through the
parties. Submission of their dispute to arbitration shall be the exclusive
means
for resolving the dispute, to the exclusion of any trial by a court or jury.
All
disputes that are not resolved by agreement (in mediation or otherwise) shall
be
determined by binding arbitration.
9.4 Injunctive
Relief. Either
party may request a court to issue such temporary or interim relief (including
temporary restraining orders and preliminary injunctions) as may be appropriate,
either before or after mediation or arbitration is commenced. The temporary
or
interim relief shall remain in effect pending the outcome of mediation or
arbitration. No such request shall be a waiver of the right to submit any
dispute to mediation or arbitration.
9.5 Employment
Status. This
Process does not affect the status of the employment relationship between the
parties, which as stated above in Section 2.2 shall be “at will;” nor does this
Process guarantee continued employment by the Company, require discharge only
for cause, or require any particular corrective action or discharge
procedures.
5
10. Notification.
Executive hereby authorizes the Company, or any of its employees or designated
representatives or counsel, to notify Executive’s actual or future employers or
any governmental agency of any terms of this Agreement or the Confidentiality
and Non-Competition Agreement and Executive’s responsibilities or obligations
hereunder.
11. Severability;
Survival of Provisions. If
any part of this Agreement or any part of the Confidentiality and
Non-Competition Agreement is held by any legal authority to be unenforceable
or
is severed by any legal authority, the remainder of such agreement shall be
enforced to the maximum extent allowed by applicable law. Certain provisions
of
this Agreement, including confidential information and covenants not to compete
(Section 8), dispute resolution process (Section 9), notification (Sections
10
and 21), and governing law (Section 18) of this Agreement, and all of the
provisions of the Confidentiality and Non-Competition Agreement, shall survive
after any such legal determination, after Executive's employment by Company
ends
regardless of the reason it ends, and shall be enforceable regardless of any
such determination or any claim Executive may have against Company.
12. Relief
for Breach.
Because
any breach or threatened breach by Executive of Sections 4, 7, and 8 of this
Agreement or of the Confidentiality and Non-Competition Agreement would result
in continuing material and irreparable harm to Company, and because it would
be
difficult or impossible to establish the full monetary value of such damage,
Company shall be entitled to injunctive relief in the event of any such breach
or threatened breach by Executive. Injunctive relief is in addition to any
other
available remedy, including termination of this Agreement and damages. In the
event of any threatened breach of this Agreement by Executive, Company may
suspend any payment of Base Salary, incentives, bonuses, Severance Benefits
and
other compensation due to Executive under this Agreement and, if Executive
has
breached this Agreement, any remaining amounts to be paid under this Agreement
shall be forfeited as liquidated damages for such breach. In the event of any
breach or threatened breach by either party which results in court-ordered
relief, the breaching party shall reimburse the non-breaching party for its
reasonable attorneys’ fees and other expenses incurred to obtain such
relief.
13. Waiver. No
waiver of any provision of this Agreement shall be valid unless in writing,
signed by the party against whom the waiver is sought to be enforced. The waiver
of any breach of this Agreement or failure to enforce any provision of this
Agreement shall not waive any later breach.
14. Binding
Effect. This
Agreement is binding upon the parties and their personal representatives, heirs,
successors and permitted assigns.
15. Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall
be
an original and all of which, taken together, shall constitute a single
agreement.
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16. Complete
Agreement. This
Agreement, together with the attached Confidentiality and Non-Competition
Agreement and the Restricted Stock Agreement and Stock Option Agreement
referenced on Exhibit 1, is the final and complete expression of the parties'
agreement relating to Executive's employment by the Company. Without limiting
the foregoing, this Agreement replaces and supersedes any prior employment
agreements between Executive and Company, or its parent, subsidiaries,
predecessors or affiliates, and each party to this Agreement hereby releases
and
holds harmless the other party from any obligations or liability with respect
thereto. The parties acknowledge and agree that they are not entering into
this
Agreement in reliance on anything not set out in this Agreement. This Agreement
shall control over any inconsistent policies or procedures of Company affecting
Executive’s employment, whether in effect now or adopted later, but Company's
policies and procedures that are consistent with this Agreement, whether in
effect now or adopted later, shall apply to Executive’s employment according to
the terms thereof.
17. Payroll
Withholding. All
payments of Base Salary, incentives, bonuses, Severance Benefits and other
compensation payable to Executive pursuant to this Agreement or otherwise shall
be subject to the customary withholding for income taxes as determined
appropriate by the Company, and shall be subject to other withholdings or
deductions as required with respect to such compensation paid by a corporation
to any employee.
18. Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of
the
State of Georgia, without giving effect to the provisions thereof relating
to
choice of laws. Each party hereby irrevocably (a) consents to the jurisdiction
and venue for any legal action with the state courts in Xxxxxx County, Georgia
and federal courts in the Northern District of Georgia, Atlanta Division, unless
injunctive relief is sought by Company and, in Company's judgment, that relief
might not be effective unless obtained in some other venue; and (b) waives
any
jurisdictional defenses (including personal jurisdiction and venue) to any
such
action. These provisions do not give any party a right to proceed in court
in
violation of the Dispute Resolution Process under Section 9, above.
19. Successors
And Assigns. All
rights and duties of Company under this Agreement shall be binding on and inure
to the benefit of its successors, assigns or any company which purchases or
otherwise acquires it or all or substantially all of its operating assets by
any
method. This Agreement shall not be assignable by Executive other than the
right
to receive benefits being passed by will or by the laws of descent and
distribution.
20. Amendment. This
Agreement contains the entire agreement of the parties relating to the subject
matter and may not be amended except by an instrument in writing signed by
both
parties; it shall not be amended orally or by course of dealing.
21. Notices.
All
notices required or permitted under this Agreement shall be in writing and
may
be personally served or mailed by registered or certified U.S. mail, postage
prepaid and addressed as follows:
7
If
to Company:
|
Xxx.xxx,
Inc.
|
|
000
Xxxxxxxxx Xxxxxx Xxxxxx
|
||
Xxxxx
000
|
||
Xxxxxxx,
Xxxxxxx 00000
|
||
If
to Executive:
|
Address
specified in Exhibit
1
|
Any
of
the above addresses may be changed at any time by notice given as provided
above; provided, however, that any such notice of change of address shall be
effective only upon receipt. All notices, requests or instructions given in
accordance herewith shall be deemed received on the date of delivery, if hand
delivered or telecopied, and 3 business days after the date of mailing, if
mailed by registered or certified mail, return receipt requested.
XXX.XXX,
INC.
|
EXECUTIVE
|
By:
/s/ Xxxxxxxx X. Xxxxxx
|
/s/
Xxxxxx X. Xxxxxxx
|
Name:
Xxxxxxxx
X. Xxxxxx
|
Name:
Xxxxxx X. Xxxxxxx
|
Title:
Senior Vice President, Legal and Corporate Development
|
Date:
March 31, 2006
|
Date:
March 31, 2006
|
8
Exhibit
1
Executive:
|
Xxxxxx
X. Xxxxxxx
|
Title:
|
Executive
Vice President, General Counsel
|
Base
Salary:
|
$185,000,
payable upon approval by the Board after the company becomes profitable
on
an EBITDA basis
|
Bonus
Target:
|
50%
of Base Salary
|
Options:
|
100,000
vested immediately upon issuance
|
Restricted
Stock:
|
100,000
vested on a 5-year vesting schedule
|
Severance
Benefits:
|
50%
of Base Salary
|
Address:
|
0000
Xxxxxxx Xxxxx Xx.
|
Xxxxx
Xxxxxxx, XX 00000
|
|
9
Exhibit
2
Confidentiality,
Invention Assignment, and Non-Competition Agreement
Xxx.xxx,
Inc. and its subsidiaries, with
a
place of business located at 000 Xxxxxxxxx Xxxxxx Xxxxxx, Xxxxx 000, Xxxxxxx,
Xxxxxxx 00000 (“Xxx.xxx”),
and
the undersigned managerial employee (“Employee”),
agree, in connection with Employee’s employment by Xxx.xxx and in consideration
of the rights and benefits given to Employee in connection with such employment
(the receipt and consideration of which is hereby acknowledged) agree as
follows.
1) |
Confidentiality.
|
a) |
During
Xxx.xxx’s employment of Employee (whether in Employee’s current capacity
or in any other future capacity), Xxx.xxx may disclose to Employee,
either
orally, in writing or by other means, trade secrets and proprietary
information concerning Xxx.xxx’s business, finances, products, customers,
vendors, computer technology and other technical, commercial or financial
affairs of Xxx.xxx which are not in the public domain and which have
been
reasonably restricted by Xxx.xxx as confidential, hereinafter referred
to
as the “CONFIDENTIAL INFORMATION.”
|
b) |
Employee
shall hold in trust and confidence the CONFIDENTIAL INFORMATION and
shall
not disclose such CONFIDENTIAL INFORMATION to any third party, except
as
agreed by Xxx.xxx in writing.
|
c) |
Employee
agrees not to use the CONFIDENTIAL INFORMATION for any purpose other
than
in the performance of Employee’s duties as an employee of Xxx.xxx.
|
d) |
Employee’s
obligations in this Section 1 will not apply to any CONFIDENTIAL
INFORMATION which was: (i) at the time of disclosure to Employee, in
the public domain; (ii) after disclosure to Employee, published or
otherwise, becomes part of the public domain through no fault of
Employee;
(iii) without a breach of duty owed to Xxx.xxx, in Employee’s
possession at the time of disclosure to Employee; (iv) received after
disclosure to Employee of such information from a third party who
had a
lawful right to and, without a breach of duty owed to Xxx.xxx, did
disclose such information to Employee; or (v) independently developed
by Employee without reference to CONFIDENTIAL
INFORMATION.
|
e) |
The
covenants of confidentiality set forth herein (i) will apply after
the date hereof to any CONFIDENTIAL INFORMATION disclosed to Employee
and
(ii) will continue and must be maintained from the date hereof until
termination of Employee’s employment, plus
(A) with respect to trade secrets (as defined by applicable law), at
any and all times after termination of Employee’s employment during which
such trade secrets retain their status as such under applicable law;
and
(B) with respect to CONFIDENTIAL INFORMATION, for a period equal to
the shorter of two (2) years after termination of Employee’s employment,
or until such CONFIDENTIAL INFORMATION no longer qualifies as CONFIDENTIAL
INFORMATION under this Agreement or applicable
law.
|
10
2) |
Inventions
|
a) |
Employee
hereby irrevocably assigns to Xxx.xxx all of Employee’s rights to all
Subject Inventions (as defined below) in the United States and all
other
countries and the right to claim priority therein. "Subject
Invention"
means any Invention (as defined below) which is conceived by Employee
solely or jointly with others and (i) relates to the actual or
anticipated business, research or development of Xxx.xxx,
(ii) results from any work performed by Employee using any equipment,
facilities, materials, Confidential Information or personnel of Xxx.xxx,
or (iii) is suggested by or results from any task assigned or
performed by Employee for or on behalf of Xxx.xxx. "Invention"
means any idea, invention, discovery, improvement, innovation, design,
process, method, formula, technique, machine, article of manufacture,
composition of matter, algorithm or computer program, as well as
improvements thereto.
|
b) |
If
Employee has previously conceived of any Invention or acquired any
ownership interest in any Invention, which: (i) is Employee’s
property, solely or jointly; (ii) is not described in any issued
patent as of the commencement of Employee’s employment with Xxx.xxx; and
(iii) would be a Subject Invention if such Invention was made while
an Xxx.xxx employee; then Employee must, at Employee’s election, either:
(i) provide Xxx.xxx with a written description of the Invention on
Exhibit
2.1,
in which case the written description (but no rights to the Invention)
shall become the property of Xxx.xxx; or (ii) provide Xxx.xxx with
the license described in Section 2(c)
of
this Agreement.
|
c) |
If
Employee has previously conceived or acquired any ownership interest
in an
Invention described above in Section 2(b)
and Employee elects not to disclose such Invention to Xxx.xxx as
provided
above, then Employee hereby grants to Xxx.xxx a nonexclusive, paid
up,
royalty-free license to use and practice the Invention, including
a
license under all patents to issue in any country which pertain to
the
Invention.
|
d) |
If
Employee owns any issued United States Patent or foreign equivalent
thereof, or Employee is an inventor, either individually or jointly,
of
any issued United States Patent or foreign equivalent thereof, Employee
must provide the United States Patent number and/or foreign number
for any
such patent or foreign equivalent thereof in Exhibit
2.1.
Otherwise, Employee represents that Employee owns no United States
Patent
or foreign equivalent thereof, individually or jointly, except those
described on Exhibit
2.1.
|
11
e) |
Employee
agrees that should Xxx.xxx elect to file an application for patent,
either
in the United States or in any foreign country on a Subject Invention
for
which Employee is an inventor, Employee will execute all necessary
documentation relating to the patent application, including formal
assignments to Xxx.xxx, and will cooperate with attorneys or other
persons
designated by Company to provide all information necessary for the
prosecution of the patent application(s) in the United States and
any
foreign country. Employee also agrees to assist Xxx.xxx in every
proper
way to maintain its patents during and following the period of employment
including, but not limited to, the performance of all lawful acts,
such as
the giving of testimony in any interference proceedings, infringement
suits, or other litigation, as may be deemed necessary or advisable
by
Xxx.xxx.
|
3) |
Copyrights.
|
a) |
Employee
agrees that any Works (as defined below) created by Employee in the
course
of Employee’s duties as an employee of Xxx.xxx are subject to the "Work
for Hire" provisions contained in Sections 101 and 201 of the
United States Copyright Law, Title 17 of the United States Code.
"Work"
means any copyrightable work of authorship, including without limitation,
any technical descriptions for products and services, user's guides,
graphical works, audiovisual works, sound recordings, advertising
materials, computer programs, web sites and content and any contribution
to such materials. All right, title and interest to copyrights in
all
Works that have been or will be prepared by Employee within the scope
of
Employee’s employment with the Company will be the property of the
Company. Employee further agrees that, to the extent the provisions
of
Title 17 of the United States Code do not vest the copyrights to any
Works in the Company, Employee hereby assigns to the Company all
right,
title and interest to copyrights that Employee may have in the Works.
|
b) |
If
Employee owns any ownership interest in any Work, Employee will list
any
such Work on Exhibit
2.1.
Otherwise, Employee will not claim any ownership rights in any Works,
except those described on Exhibit
2.1.
|
c) |
Employee
also agrees to assist the Company in every proper way to maintain
its
Copyrights during and following the period of employment including,
but
not limited to, the performance of all lawful acts, such as the giving
of
testimony in any infringement suits or other litigation as may be
deemed
necessary or advisable by the
Company.
|
4) |
Non-Solicitation
of Customers. During
the term of Employee’s employment by Xxx.xxx and for a period of six (6)
months following the termination of such employment, Employee shall
not,
either directly or indirectly, on Employee’s behalf or on behalf of others
(a) solicit, divert or appropriate to any Competing Business (as
defined below) or (b) attempt to solicit, divert or appropriate to
any Competing Business, any business from any customer or actively
sought
prospective customer of Xxx.xxx with whom Employee had contact on
behalf
of Xxx.xxx. "Competing Business" means any business organization
of
whatever form engaged, either directly or indirectly, which is the
same
as, or substantially the same as, the Business of Xxx.xxx. "Business
of
Xxx.xxx" means the business of developing and providing Web hosting
and
related services and products including without limitation email
services,
website development and hosting and e-commerce
services.
|
12
5) |
Non-Solicitation
of Employees. During
the term of Employee’s employment by Xxx.xxx and for a period of one (1)
year following the termination of Employee’s employment, Employee shall
not, either directly or indirectly, on Employee’s own behalf or on behalf
of others, solicit, divert or hire away, or attempt to solicit, divert,
or
hire away, any person employed by Xxx.xxx at any facility where Employee
performed services or any person employed by Xxx.xxx with whom Employee
had regular contact in the course of Employee’s employment by
Xxx.xxx.
|
6) |
Contracts
With Others
|
a) |
Employee
agrees to provide to the Company, upon the execution and delivery
of this
Agreement, a copy of the pertinent portions of any employment, consulting
or subcontracting agreement and other similar documents, (described
on
Exhibit
2.1),
executed by Employee with a former employer or any business or person
with
which Employee has been associated, which prohibits Employee during
a
period of time from: (i) competing with or participating in a
business which competes with Employee’s former employer or business;
(ii) soliciting personnel of the former employer or business to leave
the former employer's employment or to leave the business; or (iii)
soliciting customers of the former employer or business on behalf
of
another business.
|
b) |
Employee
represents to the Company that Employee has not entered into any
agreement
with any other party which purports to require Employee to assign
any Work
or any Invention created, conceived or first practiced by Employee
during
a period of time which includes the date of Employee’s commencement of
employment with the Company nor is Employee subject to any law, court
order or regulation which purports to require such assignment, except
as
described on Exhibit
2.1.
Employee will obtain and provide to the Company a copy of the above
described agreement(s) and a reference to any such law, court order
or
regulation.
|
7) |
Non-Competition
Employee
acknowledges that he or she is being hired by Xxx.xxx because of
his or
her unique skills and abilities and that, by virtue of being hired
by
Xxx.xxx, Employee will learn special, unique and confidential matters
pertaining to Xxx.xxx and the Business of Xxx.xxx. Employee agrees
that,
during Employee’s employment and for six (6) months after the termination
of Employee’s employment for any reason (such period being the
“Non-Competition Period”), Employee will not, directly or indirectly, (i)
be employed (whether as an employee or as a consultant) for the purpose
of
providing Protected Services to a Competing Business in the Protected
Territory, (ii) purchase or accept a beneficial interest in a Competing
Business in the Protected Territory (except that Employee may purchase
publicly-traded securities in Competing Businesses so long as Employee’s
holdings in such Competing Business do not exceed one percent (1%)
of the
aggregate outstanding shares in such Competing Business, or (iii)
serve as
on the board of directors or similar governing body of any Competing
Business. For purposes of this Section, “Protected Territory” means (y)
the area within fifty (50) miles of Xxx.xxx’s headquarters location on the
date Employee’s employment is terminated and (z) the area within fifty
(50) miles of Employee’s primary place of work on behalf of Xxx.xxx on the
date Employee’s employment is terminated. For purposes of this Section,
“Protected Services” means those services and other services reasonably
related thereto that Employee is being hired to provide to
Xxx.xxx.
|
13
8) |
Miscellaneous.
This
Agreement may not be amended, nor any obligation waived, except in
a
writing signed by Xxx.xxx and Employee. This Agreement is not assignable
or delegable in whole or in part by Employee without the written
consent
of Xxx.xxx. This Agreement shall be governed and construed by the
laws of
the State of Georgia, without reference to conflict of law principles.
An
executed original of this Agreement may be delivered by facsimile,
which
shall be binding as an original. If any part of this Agreement is
held by
any legal authority to be unenforceable or is severed by any legal
authority, the remainder of such agreement shall be enforced to the
maximum extent allowed by applicable law.
|
XXX.XXX,
INC.
|
EXECUTIVE
|
By:
/s/ Xxxxxxxx X. Xxxxxx
|
/s/
Xxxxxx X. Xxxxxxx
|
Name:
Xxxxxxxx
X. Xxxxxx
|
Name:
Xxxxxx X. Xxxxxxx
|
Title:
Senior Vice President, Legal and Corporate Development
|
Date:
March 31, 2006
|
Date:
March 31, 2006
|
14
Works
of
Employee
Inventions:
|
(None,
unless listed here) ____________________________
|
_________________________________________________
|
|
_________________________________________________
|
|
Patents:
|
(None,
unless listed here) ____________________________
|
_________________________________________________
|
|
_________________________________________________
|
|
Copyrights:
|
(None,
unless listed here) ____________________________
|
_________________________________________________
|
|
________________________________________________
|
15