EXHIBIT 10.14
EMPLOYMENT AGREEMENT
THIS AGREEMENT by and between Health Fitness Corporation, a Minnesota
corporation, (hereinafter called "HFC"), and Xxxxx Xxxxx (hereinafter called
"Executive") is dated August 25, 2003 to be effective as of the Effective Date
(as defined below).
RECITALS
WHEREAS, Executive is currently employed by Xxxxxxx & Xxxxxxx Health
Care Systems Inc. ("J&J") in J&J's Health & Fitness Services Division (the
"Business");
WHEREAS, HFC and J&J are parties to an Asset Purchase Agreement (the
"Purchase Agreement") dated as of August 25, 2003 pursuant to which J&J has
agreed to sell to HFC substantially all of the assets of the Business;
WHEREAS, in anticipation of the closing (the "Closing") of HFC's
purchase of the Business' assets as contemplated by the Purchase Agreement,
Executive and HFC desire to agree to the terms of Executive's employment with
HFC, which employment will commence, if the Closing occurs, on the date on which
the Closing occurs (the "Effective Date");
WHEREAS, Executive acknowledges and agrees that Executive will, prior
to the Effective Date and in the course of Executive's employment with HFC, have
access to confidential, proprietary and trade secret information of HFC, the
unauthorized use or disclosure of which would cause irreparable harm to HFC; and
WHEREAS, Executive wishes to receive from HFC the compensation, and the
benefit of the other terms of conditions of employment, as set forth in this
Agreement as valuable consideration for the confidentiality, noncompetition,
inventions and other provisions contained in this Agreement;
NOW, THEREFORE, in consideration of Executive's employment under the
terms and conditions of this Agreement, any promotions, increases in
compensation, and/or other benefits hereafter paid or made available to
Executive by HFC, and for other good and valuable consideration the receipt and
sufficiency of which is specifically acknowledged by the parties, Executive and
HFC agree as follows:
ARTICLE I
EMPLOYMENT, COMPENSATION AND BENEFITS
1.01 Employment With HFC.
(a) HFC hereby agrees to employ Executive initially in the
position of Vice President Account Services, and Executive
hereby accepts such employment with HFC, commencing as of the
Effective Date, subject to the terms and conditions of this
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Agreement. Such employment shall continue indefinitely until
terminated in accordance with Article II of this Agreement.
(b) Notwithstanding anything herein to the contrary, HFC's
employment of Executive as contemplated by this Agreement is
subject to, and Executive's employment with HFC will commence
only if and upon, the Closing. Executive acknowledges that the
Closing is subject to numerous conditions and that the Closing
may not occur. If the Closing does not occur, HFC will have no
obligation to employ Executive or any other obligation
hereunder. In addition, notwithstanding anything herein to the
contrary, HFC shall have the right to terminate this Agreement
immediately upon notice to Executive upon the termination of
the Purchase Agreement, and, in such event, HFC will have no
obligation to Executive hereunder, including any obligation
with respect to employment or separation pay.
1.02 Duties.
(a) Executive agrees, during Executive's employment, to
devote Executive's full time and best efforts to the business
of HFC, including, without limitation, the performance of
those duties and responsibilities reasonably and customarily
associated with Executive's position. Executive's duties and
responsibilities shall be subject to determination by HFC's
Chief Executive Officer or his designee.
(b) Executive shall report to, and at all times shall be
subject to the direction of, HFC's Chief Executive Officer or
his designee.
(c) Executive, at all times during Executive's employment
with HFC, shall comply with HFC's reasonable standards,
regulations and policies as determined or set forth by HFC
from time to time and as applicable to employees of HFC.
1.03 Outside Activities. Executive shall not engage in any outside
activities that conflict or appear to conflict with HFC's interests, or that
interfere in any way with Executive's performance of Executive's duties
hereunder. In addition, Executive shall not engage in any activity that might
subject HFC to criticism or adverse publicity, that might interfere with
Executive's normal work schedule, or that might interfere with Executive's job
duties. Moreover, Executive shall not, and hereby agrees not to accept
remuneration of any kind from Executive's participation in any outside activity
without the express written approval of HFC.
1.04 Annual Base Salary. Executive's annual base salary shall be
calculated on the gross amount of U.S. $116,100 (effective as of the Effective
Date), less withholding for income and FICA taxes and any other proper
deductions. Executive's annual base salary will be paid to Executive in
accordance with HFC's normal payroll practices. Executive's performance shall be
reviewed annually for base salary increase each March 1st, and such increase, if
any, shall be determined by HFC in its sole discretion.
1.05 Stock Options. Executive and HFC shall enter into a separate
Incentive Stock Option Agreement ("ISOA") pursuant to which HFC will grant to
Executive, upon commencement of
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Executive's employment with HFC hereunder, options to purchase 40,000 shares of
common stock of HFC. Under the ISOA, such options will vest ratably over four
years after, and will expire on the sixth anniversary of, the date of grant, and
the exercise price of each option will be the fair market value of HFC's common
stock on the date of grant.
1.06 Fringe Benefits. HFC shall provide the following fringe
benefits to Executive so long as Executive is employed by HFC:
(a) Executive shall be eligible to participate in an annual
calendar year bonus program effective with the 2004 calendar
year subject to the specific terms and conditions of the
program developed each year. Initially for the 2004 calendar
year such bonus eligibility shall be up to a maximum of 20% of
Executive's 2004 HFC base salary based on the Executive's
successful achievement of criteria to be determined by HFC's
Chief Executive Officer in his sole discretion.
(b) Executive shall be eligible to participate in employee
benefit plans and programs offered by HFC from time to time,
including, but not limited to, any medical, dental, short-term
disability, long-term disability and life insurance coverage,
or retirement plans, in accordance with the terms and
conditions of those benefit plans and programs.
1.07 Expenses. During the term of this Agreement, Executive shall
be entitled to prompt reimbursement by HFC for all reasonable, ordinary and
necessary travel, entertainment and other business related expenses incurred by
Executive (in accordance with the policies and procedures established by HFC for
employees from time to time) in the performance of Executive's duties and
responsibilities under this Agreement; provided, however, that Executive shall
properly account for such expenses in accordance with federal, state and local
tax requirements and HFC's policies and procedures.
ARTICLE II
TERMINATION
2.01 Events of Termination. Executive's employment with HFC:
(a) May be terminated by mutual written agreement of HFC
and Executive.
(b) Shall terminate immediately upon the death of
Executive.
(c) May be terminated upon written notice from HFC to
Executive for Cause, which shall mean the following:
(i) Failure of Executive to (a)
satisfactorily, faithfully, diligently or competently
perform the duties, requirements and responsibilities
of Executive's employment as contemplated by this
Agreement or as assigned by
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HFC's Chief Executive Officer, or (b) take reasonable
direction consistent with Executive's position from
HFC's Chief Executive Officer; or
(ii) Failure of Executive to comply with
the reasonable policies, regulations and directives
of HFC as in effect from time to time; or
(iii) Any act or omission on the part of
Executive which constitutes a failure to comply with
the provisions of this Agreement; or
(iv) Any act or omission on the part of
Executive which is harmful to the reputation or
business of HFC, including, but not limited to,
personal conduct of Executive which is inconsistent
with federal and state laws respecting harassment of,
or discrimination against, one or more of HFC's
employees; or
(v) Conviction of Executive of, or a
guilty or nolo contendere plea by Executive with
respect to, any crime punishable as a felony; or any
bar against Executive from serving as a director,
officer or executive of any firm the securities of
which trade publicly.
Executive's termination for Cause shall be determined
in good faith by and in the sole discretion of HFC's Chief
Executive Officer and/or his designee.
In the event of termination pursuant to subparagraph
2.01(c)(iii), (iv) or (v), Executive's termination shall be
immediate upon the giving of written notice to Executive.
However, in the event of termination pursuant to subparagraph
2.01(c)(i) or (ii), HFC's Chief Executive Officer will provide
Executive written notice (the "Cause Notice") of proposed
termination which provides (1) reasonable detail as to the
cause or causes asserted by HFC and upon which the Cause
Notice is based, and (2) notification of a certain period of
time from receipt of such Cause Notice within which Executive
shall have the opportunity to cure the performance or conduct
upon which the Cause Notice is based, to the satisfaction of
HFC's Chief Executive Officer. If after the completion of the
designated cure period HFC's Chief Executive Officer
determines, in his sole discretion, that Executive has failed
to cure the performance or conduct, Executive will be given
written notice of Executive's termination and Executive's
employment will terminate immediately upon the giving of such
notice to Executive.
(d) May be terminated upon Executive's inability to perform
the essential functions of Executive's position due to
physical or mental disability, with or without reasonable
accommodation, as determined in the good faith judgment of
HFC's Chief Executive Officer, or as may otherwise be required
by applicable law.
(e) Shall terminate at the end of the month during which
Executive reaches the normal retirement date established by
HFC for management employees of HFC, but in no event earlier
than the compulsory retirement age permitted under applicable
federal or state law for management employees.
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(f) May be terminated by Executive for any reason on thirty
(30) days' written notice to HFC.
(g) May be terminated by HFC at any time, for any reason,
upon written notice to Executive.
2.02 Compensation Upon Termination of Executive's Employment. In
the event that Executive's employment with HFC terminates the following
provisions shall govern as applicable:
(a) If termination occurs pursuant to subparagraph 2.01(a),
(b), (c), (d), (e), or (f), Executive's receipt of annual base
salary and fringe benefits shall terminate as of the date of
termination or as required by law, unless the parties agree in
writing otherwise. If termination occurs pursuant to
subparagraph 2.01(d), Executive acknowledges and agrees that
Executive's receipt of salary compensation between the date of
disability and date of termination shall be governed by HFC's
employee benefit programs, as may be amended from time to
time, to the extent Executive is eligible to participate in
such programs.
(b) If termination occurs pursuant to subparagraph 2.01(g),
Executive's receipt of annual base salary and fringe benefits
shall terminate as of the date of termination or as required
by law. However, Executive shall receive as separation pay the
equivalent of 3 months of Executive's then current annual base
salary. Any separation pay due to Executive under this
subparagraph 2.02(b) shall be payable to Executive, at the
sole discretion of HFC, either in a lump sum or in
installments in accordance with HFC's standard payroll
practices. Executive shall be required to execute a general
release of any and all claims in favor of HFC in exchange for
Executive's receipt of separation pay under this subparagraph
2.02(b).
(c) Notwithstanding the foregoing, if termination occurs
pursuant to subparagraph 2.01(g) at any time during the period
beginning on the Effective Date and ending on the six month
anniversary thereof, HFC shall pay such Executive, in lieu of
any other separation pay hereunder (including under Section
2.02(b)), $32,910 (including an additional amount of $16,209
if Executive has signed a general release of any and all
claims that Executive may then have against HFC).
(d) All payments made to Executive under this Paragraph
2.02 shall be reduced by amounts (i) required to be withheld
in accordance with federal, state and local laws and
regulations in effect at the time of payment, and (ii) owed to
HFC by Executive for any amounts advanced, loaned or
misappropriated in accordance with applicable law.
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ARTICLE III
PROTECTION OF TRADE SECRETS AND
CONFIDENTIAL BUSINESS DATA
3.01. Confidential Information. For the purposes of this Agreement,
"Confidential Information" means any information not generally known to the
public and proprietary to HFC and includes, without limitation, trade secrets,
inventions, and information pertaining to research, development, purchasing,
marketing, selling, accounting, licensing, business systems, business
techniques, site processes and manuals, customer information and lists,
prospective customer information and lists, pricing information and lists, fee
schedules, business strategies and plans, information pertaining to the benefits
HFC provides to its customers and employees, pending patentable materials and/or
designs, design documentation, discoveries, improvements, ideas, documentation
of meetings, tests and/or test standards, employee compensation, or manuals
whether or not in document, electronic, computer or other form. For example,
Confidential Information may be contained in HFC's customer lists, prospective
customer lists, the particular needs and requirements of customers, the
particular needs and requirements of prospective customers, and the identity of
customers or prospective customers. Information shall be treated as Confidential
Information regardless of its source, and any information which is labeled or
marked as being "confidential" or "trade secret" shall be presumed to be
Confidential Information. The definition of "Confidential Information" is not
intended to be complete; from time to time during the term of Executive's
employment, Executive may gain access to other information not generally known
to the public and proprietary to HFC concerning HFC's business that is of
commercial value to HFC, which information shall be included in the definition
of "Confidential Information" above, even though not specifically listed in that
definition. The definition of Confidential Information and the provisions of
this Article III apply to any form in which the subject information, trade
secrets, or data may appear, whether written, oral, or any other form of
recording or storage.
3.02 Maintain in Confidence. Executive shall hold the Confidential
Information, including trade secrets and/or data, in the strictest confidence
and will never, without prior written consent of HFC, (directly or indirectly)
disclose, assign, transfer, convey or communicate to any person or entity
(including without limitation a competitor of HFC, the press, other
professionals, corporations, partnerships or the public), or use for Executive's
own or another's benefit, at any time prior to or during Executive's employment
with HFC or at any time after Executive's termination of employment with HFC,
regardless of the reason for Executive's resignation or termination of
employment, whether voluntary or involuntary. Executive further promises and
agrees that Executive will faithfully abide by any rules, policies, practices or
procedures existing or which may be established by HFC for insuring the
confidentiality of the Confidential Information, including, but not limited to,
rules, policies, practices or procedures: (a) limiting access to authorized
personnel; (b) limiting copying of any writing, data or recording; (c) requiring
storage of property, documents or data in secure facilities provided by HFC and
limiting safe or vault lock combinations or keys to authorized personnel; and/or
(d) checkout and return or other procedures promulgated by HFC from time to
time.
3.03 Return of Information/Property. Upon Executive's resignation or
termination of employment, whether voluntary or involuntary, or prior to or
during Executive's employment upon request by HFC for any reason, Executive will
return to HFC any and all written or otherwise recorded form of all Confidential
Information (and any copies thereof) in Executive's possession, custody or
control, including, but not limited to, notebooks, memoranda, specifications,
customer information and lists, prospective or potential customer information
and lists, and pricing information and lists, and will take with him, upon
leaving HFC's place of business or employment with HFC, no such documents, data,
writings, recordings, or reproduction in any form which may have been entrusted
or obtained by
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him during the course of Executive's employment or to which he had access,
possession, custody or control, except with the express, written permission of
HFC's Board of Directors. Moreover, in the event of Executive's resignation or
termination of employment, whether voluntary or involuntary, all corporate
documents, records, files, credit cards, computer disks and tapes, computer
access cards, codes and keys, file access codes and keys, building and office
access cards, codes and keys, materials, equipment and other property of HFC
which is in Executive's possession, custody or control shall be returned to HFC
at its principal business offices on the date of Executive's resignation or
termination of employment, or within five business days thereafter if
termination occurs without notice. Executive may copy, at Executive's expense,
documents, records, materials and information of HFC only with the express,
written permission of HFC's Board of Directors.
3.04 Irreparable Harm. The parties acknowledge that HFC will suffer
irreparable harm if Executive breaches Paragraphs 3.02 or 3.03, either during or
after Executive's employment with HFC. Accordingly, HFC shall be entitled, in
addition to any other right and remedy it may have, at law or equity, to a
temporary restraining order and/or injunction, without the posting of a bond or
other security, or with the posting of a minimal bond or security where required
by applicable law, enjoining or restraining Executive from any violation of
Paragraphs 3.02 or 3.03, and Executive hereby consents to HFC's right to seek
the issuance of such injunction. If HFC institutes any such action against
Executive, alone or in conjunction with any third party or parties to enforce
any terms or provisions of Paragraphs 3.02 or 3.03, then the party that prevails
in such action shall be entitled to receive from the opposing party (or parties)
in the action the prevailing party's reasonable attorneys' fees incurred in such
action and all costs and expenses incurred in connection therewith in accordance
with Paragraph 7.08
3.05 Survival of Provisions. The parties agree that the provisions
in this Article III shall survive the termination of this Agreement and
termination of Executive's employment for any reason.
ARTICLE IV
NON-COMPETE; NON-SOLICITATION; NON-DISPARAGEMENT
4.01 Non-Compete Agreement.
(a) During Executive's employment with HFC and for a
period of eighteen (18) months after Executive's resignation
or termination of employment, whether voluntary or
involuntary, Executive shall not render services, directly or
indirectly, to any Conflicting Organization (as defined below)
in the United States, or in any foreign country or territory
in which the services Executive may provide could enhance the
use or marketability of a Conflicting Product (as defined
below) by application of Confidential Information that
Executive shall have had access to during Executive's
employment, except that Executive may accept employment with a
Conflicting Organization whose business is diversified and
which is, as to that part of its business in which Executive
accepts employment, not a Conflicting Organization, provided
that HFC, prior to Executive's accepting such employment,
shall receive separate written assurances satisfactory to HFC
from such Conflicting Organization and from Executive, that
Executive will not render services directly or
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indirectly, for an 18-month period, in connection with any
Conflicting Product. Executive also agrees that during
Executive's employment with HFC and for a period of 18 months
thereafter, Executive will not render services to any other
organization or person in a position in which Executive could
use Confidential Information to the detriment of HFC.
(b) "Conflicting Organization" means any person or
organization that is engaged in (or about to become engaged
in) research on, consulting regarding, or development,
production, marketing or selling of a Conflicting Product.
(c) "Conflicting Product" means any product, process,
technology, machine, invention or service of any person or
organization other than HFC in existence or under development
which resembles or competes with a product, process,
technology, machine, invention or service upon which Executive
shall have worked or about which Executive becomes
knowledgeable as a result of employment with HFC and whose use
or marketability could be enhanced by application to it of
Confidential Information which Executive shall have had access
to during Executive's employment.
4.02 Non-Solicitation Agreement. During Executive's employment
with HFC and for a period of eighteen (18) months after Executive's resignation
or termination of employment, whether voluntary or involuntary, Executive shall
not,
(a) solicit HFC's current or former customers or
potential or prospective customers on behalf of himself or any
other business, person or entity for the purpose of selling,
offering, providing or otherwise making available products or
services that are the same as or similar to those products and
services that were offered by HFC at any time during
Executive's employment with HFC;
(b) exploit or use contacts, developed or made
during Executive's employment with HFC, for the purpose of
soliciting HFC's current or former customers or potential or
prospective customers on Executive's behalf or the behalf of
any other business, person or entity for purpose of selling,
offering, providing or otherwise making available products or
services that are the same as or similar to those products and
services that were offered by HFC at any time during
Executive's employment with HFC; or
(c) directly or indirectly, induce or attempt to
induce, any of HFC's then current employees or independent
contractors to terminate their employment, contractual or
other relationship with HFC, or otherwise interfere or attempt
to interfere with that existing employment or other
relationship with HFC.
4.03 Non-Disparagement. During Executive's employment with HFC and
at all times thereafter, Executive shall not disparage or defame, or allow or
cause others to disparage or defame, HFC, its Board of Directors, directors,
officers, employees, customers, or vendors.
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4.04 Irreparable Harm. The parties acknowledge that HFC will suffer
irreparable harm if Executive breaches Paragraph 4.01, 4.02 or 4.03.
Accordingly, HFC shall be entitled, in addition to any other right and remedy it
may have, at law or equity, to a temporary restraining order and/or injunction,
without the posting of a bond or other security, or with the posting of a
minimal bond or security where required by applicable law, enjoining or
restraining Executive from any violation of Paragraph 4.01, 4.02 or 4.03 and
Executive hereby consents to HFC's right to seek the issuance of such
injunction. If HFC institutes any such action against Executive, alone or in
conjunction with any third party or parties to enforce any terms or provisions
of Paragraph 4.01, 4.02 or 4.03 then the party that prevails in such action
shall be entitled to receive from the opposing party (or parties) in the action
the prevailing party's reasonable attorneys' fees incurred in such action and
all costs and expenses incurred in connection therewith in accordance with
Paragraph 7.08.
4.05 Limit to Extent Enforceable. In the event that a court of
competent jurisdiction determines that any of the provisions of Paragraph 4.01,
4.02 or 4.03 are unreasonable, it may limit such provision to the extent it
deems reasonable, without declaring the provision of Paragraph 4.01, 4.02 or
4.03 invalid in its entirety. This provision shall not be construed as an
admission by HFC, but is only included to provide HFC with the maximum possible
protection for its business, Confidential Information, trade secrets and data,
consistent with the right of Executive to earn a livelihood subsequent to the
termination of Executive's employment.
4.06 Compliance. To enable HFC to monitor Executive's compliance
with the obligations imposed by this Agreement, including Sections 4.01, 4.02
and 4.03, Executive shall, during the eighteen (18) months following Executive's
termination or resignation, inform HFC of the identity of any new employer of
Executive and of Executive's job title and responsibilities with any such
employer.
4.07 Survival of Provisions. The parties agree that the provisions
in this Article IV shall survive termination of this Agreement and termination
of Executive's employment for any reason.
ARTICLE V
INVENTIONS
5.01 Invention. For purposes of this Agreement, the term
"Invention" means ideas, discoveries, and improvements whether or not shown or
described in writing or reduced to practice and whether patentable or not,
relating to any of HFC's present or future sales, research, or other business
activities, or reasonably foreseeable business interests of HFC.
5.02 Disclosure. Executive shall promptly and fully disclose to HFC
and will hold in trust for HFC sole right and benefit any Invention which
Executive, during the period of Executive's employment (including during
non-working hours), makes, conceives, or reduces to practice or causes to be
made, conceived, or reduced to practice either alone or in conjunction with
others that: (a) relates to any subject matter pertaining to Executive's
employment; (b) relates to or is directly or indirectly connected with the
business, products, projects, or Confidential Information of HFC; or (c)
involves the use of any time, material, or facility of HFC.
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5.03 Assignment of Ownership. Executive hereby assigns to HFC all
of Executive's right, title, and interest in and to all such inventions as
described in Paragraph 5.02 and, upon HFC's request, Executive shall execute,
verify, and deliver to HFC such documents including, without limitation,
assignments and applications for Letters Patent, and shall perform such other
acts, including, without limitation, appearing as a witness in any action
brought in connection with this Agreement that is necessary to enable HFC to
obtain the sole right, title, and benefit to all such inventions.
5.04 Excluded Inventions. It is further agreed, and Executive is
hereby so notified, that the above agreement to assign inventions to HFC does
not apply to any invention for which no equipment, supplies, facility, or
Confidential Information of HFC was used, which was developed entirely on
Executive's own time, and (a) which does not relate (i) directly to the business
of HFC or (ii) to HFC's actual or demonstrably anticipated research or
development, or (b) which does not result from any work performed by Executive
for HFC.
5.05 Prior Inventions. Attached to this Agreement and initialed by
both parties is a list of all of the inventions, by description, if any, in
which Executive possesses any right, title, or interest prior to this employment
and the execution of this Agreement, which are not subject to the terms of this
Agreement.
5.06 Specific Performance; Attorney Fees. Executive expressly
acknowledges and agrees that any violation of any terms of Paragraphs 5.02 or
5.03 may result in the issuance of a temporary restraining order and/or
injunction against Executive to effect specific performance of the terms of
Paragraphs 5.02 or 5.03. If HFC institutes any action against Executive, alone
or in conjunction with any third party or parties, to enforce any term or
provision of Paragraphs 5.02 or 5.03, then the party that prevails in such
action shall be entitled to receive from the opposing party (or parties) in the
action the prevailing party's reasonable attorneys' fees incurred in such action
and all costs and expenses incurred in connection therewith in accordance with
Paragraph 7.08.
5.07 Survival of Provisions. The parties agree that the provisions
in this Article V shall survive termination of this Agreement and termination of
Executive's employment for any reason.
ARTICLE VI
ARBITRATION
6.01 Agreement to Arbitrate. With the exception of HFC's right to
seek injunctive relief in connection with breaches by Executive of Paragraphs
3.02, 3.03, 4.01, 4.02 and/or 5.02 or 5.03 of this Agreement, all disputes or
claims arising out of or in any way relating to this Agreement, including the
making of this Agreement, shall be submitted to and determined by final and
binding arbitration before the American Arbitration Association ("AAA") under
the AAA's National Rules for the Resolution of Employment Disputes. The award of
the arbitrator(s), or a majority of them, shall be final and judgment upon such
award may be entered in any court of competent jurisdiction. This arbitration
provision shall continue in full force and effect after Executive's resignation
or termination of employment under this Agreement.
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6.02 Discovery. In addition to any other procedures provided for
under the rules of the AAA, upon written request, each party shall, at least 14
days prior to the date of any hearing, provide to the opposite party a copy of
all documents relevant to the issues raised by any claim or counterclaim and a
list of all witnesses to be called by that party at the hearing and each party
shall be permitted to take at least one deposition at least 14 days prior to any
hearing.
6.03 Costs. The costs of proceedings under Article VI shall be
paid in accordance with the provisions of Article VII below.
ARTICLE VII
MISCELLANEOUS
7.01 Governing Law. This Agreement shall be governed according to
the laws of the State of Minnesota.
7.02 Captions. The captions set forth in this Agreement are for
convenience only and shall not be considered as part of this Agreement or as in
any way limiting or amplifying the terms and conditions hereof.
7.03 No Conflicting Obligations. Executive represents and warrants
to HFC that he is not under, or bound to be under in the future, any obligation
to any person, firm, or corporation that is or would be inconsistent or in
conflict with this Agreement or would prevent, limit, or impair in any way the
performance by him of Executive's obligations hereunder. Specifically, but
without limiting the generality of the foregoing, Executive warrants and
represents to HFC that he is not currently bound and will not be bound in the
future by any confidentiality agreements and/or restrictive covenants that may
and/or will restrict Executive's ability to perform Executive's duties
hereunder. Moreover, Executive agrees that he will not enter into any
confidentiality agreements and/or restrictive covenants during Executive's
employment with HFC that may or will restrict Executive's ability to perform
Executive's duties hereunder, with the exception of any confidentially
agreements and/or restrictive covenants entered into by and between Executive
and HFC.
7.04 Successors. This Agreement is personal to Executive and
Executive may not assign or transfer any part of Executive's rights or duties
hereunder, or any compensation due to him hereunder, to any other person. This
Agreement may be assigned by HFC. This Agreement is binding on any successors or
assigns of HFC.
7.05 Waiver. The waiver by any party of the breach or
nonperformance of any provision of this Agreement by any other party will not
operate or be construed as a waiver of any future breach or nonperformance under
any provision of this Agreement or any similar agreement with any other
employee.
7.06 Notices. Any and all notices referred to herein shall be
deemed properly given only if in writing and delivered personally or sent
postage prepaid, by certified mail, return receipt requested, as follows:
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(a) To HFC by notice to the Chief Executive Officer
(b) To Executive at Executive's home address as it then
appears on the records of HFC, it being the duty of Executive
to keep HFC informed of Executive's current home address at
all times.
The date on which notice to HFC or Executive shall be deemed to have been given
if mailed as provided above shall be the date on the certified mail return
receipt. Personal delivery to Executive shall be deemed to have occurred on the
date notice was delivered to Executive personally or deposited in a mail box or
slot or left with security or administrative personnel, at Executive's residence
by a representative of HFC or any messenger or delivery service.
7.07 Survival of Provisions. The parties agree that the provisions
in Articles III, IV, V, VI, and VII shall survive termination of this Agreement
and Executive's resignation or termination from employment for any reason.
7.08 Payment of Fees and Expenses. If any party initiates or
becomes a party to a formal proceeding in law or equity, or under Article VI,
involving this Agreement, and if either party obtains a substantial portion of
the relief requested by that party (the "prevailing party"), then the
non-prevailing party shall pay all of its and the prevailing party's reasonable
costs and expenses, including reasonable attorneys' fees and expenses, incurred
with respect to such proceeding. If neither party obtains a substantial portion
of the relief requested each shall bear its/his own expenses. In the event
Executive is terminated pursuant to Paragraph 2.01(c) and challenges HFC's
determination of Cause, HFC and Executive shall each bear its/his own expenses
in connection with any proceeding initiated by Executive with respect to the
determination as to "Cause."
7.09 Term. This Agreement shall be effective from the date written
above and shall continue until terminated in accordance with the provisions set
forth in this Agreement.
7.10 Modification. This Agreement supersedes any and all prior oral
and written understandings and agreements, if any, between the parties relating
to the subject matter hereof. This Agreement sets forth the entire
understandings and agreements between and among the parties and is the complete
and exclusive statement of the terms and conditions thereof. No modification,
termination, discharge or attempted waiver of any provision of this Agreement
will be valid unless it is made in writing and signed by the party against whom
the same is sought to be enforced, and is specifically identified as a
modification, termination, release, waiver or discharge of this Agreement.
7.11 Counterparts. More than one counterpart of this Agreement may
be executed by the parties hereto, and each fully executed counterpart shall be
deemed an original.
[Signature page follows]
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IN WITNESS WHEREOF, the parties have hereunto set their hands as of the
date written above.
HEALTH FITNESS CORPORATION
By /s/ Xxxxx X. Xxxxx
----------------------------
Xxxxx X. Xxxxx
Its: Chief Executive Officer
EXECUTIVE
/s/ Xxxxx Xxxxx
-------------------------------------
Xxxxx Xxxxx
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