EX-10.5 8 d511403dex105.htm EX-10.5 EMPLOYMENT AGREEMENT Ceridian Canada Ltd. - and - Arthur Gitajn (“Executive”) Date: September 14, 2016
Exhibit 10.5
Ceridian Canada Ltd.
- and -
Xxxxxx Xxxxxx
(“Executive”)
Date: September 14, 2016
ARTICLE 1
DEFINITIONS
In this Agreement, unless something in the subject matter or context is inconsistent therewith, all defined terms shall have the meanings set forth below:
1.01 “Affiliate” shall mean with respect to any specified Person, a Person that directly or indirectly controls, is controlled by, or is under common control with, such Person, where “control” means the possession, directly or indirectly, or the power to direct or cause the direction of the management policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
1.02 “Base Salary” shall mean the regular cash compensation paid on a periodic basis as contemplated in Section 3.01, exclusive of benefits, bonuses or incentive payments.
1.03 “Cause” shall mean cause as defined under Section 4.01.
1.04 “Ceridian” shall mean Ceridian HCM, Ceridian Canada and all of their respective Affiliates, or any one of them.
1.05 “Ceridian Canada” means Ceridian Canada Ltd., a company incorporated under the federal laws of Canada having a business address at 5th Floor – 000 Xxxxx Xxxxxx, Xxxxxxxx, XX, X0X 0X0, and any successor in interest by way of consolidation, operation of law, merger or otherwise.
1.06 “Ceridian HCM” shall mean Ceridian HCM, Inc. a Delaware corporation having a business address at 0000 Xxxx Xxx Xxxxxxxx Xxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000 U.S.A., and any successor in interest by way of consolidation, operation of law, merger or otherwise.
1.07 “Confidential Information” shall mean all information known or used by Ceridian in connection with its business, including but not limited to any technology, including computer software and designs, program, code, formula, design, prototype, compilation of information, data, techniques, process, information relating to any product, device, equipment or machine, industrial or commercial designs, customer information, financial information, marketing information, business opportunities, and the results of research and development, including without limitation:
| (a) | information or material relating to Ceridian and its business as conducted or anticipated to be conducted, including without limitation: business plans; operations; past, current or anticipated services, products or software; customers or prospective customers; relations with business partners or prospective business partners; or research, engineering, development, manufacturing, purchasing, accounting, or marketing activities; |
| (b) | information or material relating to Ceridian’s inventions, improvements, discoveries, “know-how,” technological developments, or unpublished writings or other works of authorship, or to the materials, apparatus, processes, formulae, plans or methods used in the development, manufacture or marketing of Ceridian’s services, products or software; |
| (c) | information on or material relating to Ceridian which when received is marked as “proprietary,” “private” or “confidential;” |
| (d) | trade secrets of Ceridian; |
| (e) | software of Ceridian in various stages of development, software designs, web-based solutions, specifications, programming aids, programming languages, interfaces, visual displays, technical documentation, user manuals, data files and databases of Ceridian; |
| (f) | information relating to employees of Ceridian including with respect to compensation, positions, job descriptions, responsibilities, areas of expertise and experience; and |
| (g) | any similar information of the type described above which Ceridian obtained from another party and which Ceridian treats as or designates as being proprietary, private or confidential, whether or not owned or developed by Ceridian. |
Notwithstanding the foregoing, “Confidential Information” does not include any information which is now or subsequently becomes properly generally publicly available or in the public domain; is independently made available to Executive in good faith by a third party who has not violated a confidential relationship with Ceridian; or is required to be disclosed by law or legal process. Notwithstanding the foregoing, information which is made generally publicly available by or with the aid of Executive outside the scope of employment or contrary to the requirements of this Agreement and reasonable business practice will not be generally publicly available or in the public domain for the purposes of this Agreement.
1.08 “Disability” shall mean a circumstance in which Executive, through bona fide illness, physical or mental, is continuously unable to perform his duties on a full-time basis for a period of 180 days from the commencement of such illness; and for such purposes, in calculating any period of disability, unless and until Executive shall have returned to attending to the affairs of Ceridian on a full-time basis for 30 consecutive normal working days, the alleged period of disability shall be deemed to have continued without any interruption whatsoever.
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1.09 “Good Reason” shall mean any act, or failure to act, or omission by Ceridian Canada that would constitute at Law in the Province of Ontario constructive dismissal of Executive, and shall for purposes hereof, include without limitation:
(a) a reduction by Ceridian Canada in your Base Salary or bonus and incentives as set forth in Section 3.02 (as the same may be increased from time to time thereafter), other than in conjunction with similar compensation reductions made to substantially all of the employees at Executive’s level, and also excluding an isolated, insubstantial or inadvertent failure not occurring in bad faith and which is remedied by Ceridian Canada promptly after receipt of written notice thereof given by you;
(b) a material reduction in title, position, responsibilities or authority which has the effect of materially diminishing your responsibility or authority, excluding for this purpose an isolated, insubstantial or inadvertent action not taken in bad faith; or
(c) the relocation of the place of Executive’s employment to a location in excess of 50 km from his principal place of employment as of the date hereof.
1.10 Notwithstanding anything to the contrary contained in this definition, no Good Reason shall be effective or deemed to occur, unless notice referencing the definition of Good Reason in this Agreement and including a description of the factors constituting the alleged “Good Reason” is provided in writing by Executive (or his representatives on his behalf) to his direct manager, and Ceridian Canada fails to cure such alleged “Good Reason” within 30 days; provided that in the event Ceridian Canada terminates Executive for Cause, any failure by Executive (or his representatives on his behalf) to provide notice of an alleged “Good Reason” prior to such termination shall not prejudice Executive’s right to claim that a “Good Reason” occurred prior to such termination.
1.11 “Person” is to be interpreted broadly and shall include any individual, partnership, firm, corporation, company, limited liability or joint stock company, trust, unincorporated association, joint venture, syndicate, governmental entity or any other entity, and pronouns have a similarly extended meaning.
ARTICLE 2
EMPLOYMENT, DUTIES AND TERM
2.01 Employment. Upon the terms and conditions set forth in this Agreement, Ceridian Canada hereby employs Executive as Chief Financial Officer of Ceridian HCM, reporting to the Chief Executive Officer, and Executive hereby accepts such employment.
2.02 Duties and Responsibilities. As Chief Financial Officer of Ceridian HCM, Executive shall:
(a) devote his full-time and reasonable best efforts to Ceridian and to fulfilling the duties of his position which shall include such duties as may from time to time be assigned to him by his manager, provided that such duties are reasonably consistent with Executive’s education, experience and background;
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(b) comply with Ceridian’s policies and procedures to the extent that such policies and procedures are not inconsistent with this Agreement, in which case the provisions of this Agreement shall prevail.
2.03 Term. Executive will request that his current employer waive the 30-day notice requirement in his current employment agreement to permit him to commence employment on October 3, 2016. Subject to the provisions of ARTICLE 4, Executive’s employment as Chief Financial Officer shall commence on October 3, 2016, if the 30-day notice requirement is waived, and otherwise on October 17, 2016, and shall continue until terminated by either party in accordance with the terms hereof (the “Term”).
2.04 Executive Representation. Executive hereby represents to Ceridian Canada that to the best of his knowledge, the execution and delivery of this Agreement by Executive and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound. In this regard, Executive has provided Ceridian Canada with a copy of Exhibit A to an agreement made between him and his current employer SAP Canada, Inc. (“SAP”), which Exhibit is titled “Executive Intellectual Property, Confidentiality, Non-Competition and Non Solicitation Agreement” (the “SAP Non-Competition Agreement”), and both parties are of the opinion that Executive will not be in breach of such agreement by entering into this Agreement. However, in the event SAP takes the position that Executive is in breach of his obligations under the SAP Non-Competition Agreement, both parties agree to co-operate and work together to respond to SAP and take such actions and steps as reasonably necessary to resolve such dispute keeping in mind the interests of both parties.
2.05 Legal Work Requirements. This Agreement and Executive’s employment with Ceridian Canada is contingent upon Executive meeting and maintaining throughout his employment, all requirements necessary to be legally entitled to work for Ceridian Canada within Canada, performing the roles assigned in connection with this position. Without limitation, and unless otherwise expressly agreed to herein, it is Executive’s responsibility to obtain (and maintain), at his cost and expense, a valid work permit and any other necessary permits, credentials or licenses from Canadian immigration or any other applicable government or regulatory authority.
ARTICLE 3
COMPENSATION AND EXPENSES
3.01 Base Salary. For all services rendered under this Agreement during the Term, Ceridian Canada shall pay Executive a Base Salary in an amount not less than Four Hundred Thousand ($400,000.00) Dollars CAD per year, which amount will be subject to annual review in accordance with Ceridian Canada’s annual salary review process. The Base Salary shall be paid in accordance with Ceridian Canada’s normal payroll procedures and policies, as such procedures and policies may be modified from time to time.
3.02 Signing Bonus. Executive will be entitled to a one-time signing bonus in the amount of $500,000 (less applicable statutory withholdings as required by law), which will be paid to Executive on or before June 30, 2017. Executive must be employed by Ceridian Canada at the
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time such bonus is to be paid in order to be entitled to receive it, except in the event Ceridian Canada terminates his employment without Cause or the Executive terminates his employment for Good Reason, in which case such bonus will still be payable to Executive as soon as administratively feasible after his last day of employment with Ceridian.
3.03 Bonus and Incentive.
(a) For the calendar year 2016, Executive shall be entitled to a bonus payment in the amount of Three Hundred Forty-One Thousand Two Hundred Dollars ($341,200.00) CDN, payable at the same time as Ceridian Canada’s bonus incentive plan payments are made to other Ceridian Canada employees (but in any event no later than March 31, 2017). Executive must remain an employee of Ceridian Canada through to and including December 31, 2016 in order to be entitled to such payment, failing which the bonus amount will be pro-rated (based on the number of days he was an employee of Ceridian Canada, divided by number of days from his Effective Date through to December 31, 2016).
(b) For the calendar year 2017 and each year thereafter, Executive shall be eligible to participate in Ceridian Canada’s bonus or incentive plans, as the same may exist from time to time. Bonus or incentive compensation shall be at the sole discretion of Ceridian Canada, provided that Executive’s target incentive bonus, as well as the range of the potential bonus payout, for each fiscal year of Ceridian Canada (January 1 to December 31), shall be Eighty Percent (80%) of your Base Salary. Payments are based on achievement of the applicable performance objectives established by Ceridian in its sole discretion. Ceridian shall have the right to alter, amend or eliminate any bonus or incentive plans, or Executive’s participation therein, without compensation to Executive provided the changes are consistent with those affecting other executives at Executive’s level. The bonus or incentive compensation shall be prorated if Executive’s employment during the year for which such amount is paid is less than a full year.
3.04 Benefit Plans. Executive shall be entitled to participate in the employee health and welfare, retirement and other employee benefits programs offered generally from time to time by Ceridian to its senior executive employees in the applicable country, to the extent that Executive’s position, tenure, salary, and other qualifications make Executive eligible to participate.
3.05 Business Expenses. Ceridian Canada shall, consistent with its policies in effect from time to time, bear all ordinary and necessary business expenses incurred by Executive in performing his or her duties as an employee of Ceridian Canada, provided that Executive accounts promptly for such expenses to Ceridian Canada in the manner prescribed from time to time by Ceridian Canada.
3.06 Vacation. Executive is entitled to 4 weeks paid vacation in each calendar year; provided that such vacations may be taken only at such times as Executive and his manager may from time to time reasonably determine having regard to the operations of Ceridian. Vacation should be taken in the then current year, but may be carried over into the immediately succeeding calendar year, provided that such vacation must be used by December 31 of such calendar year or will be forfeited by Executive without compensation. Entitlement may not be otherwise accumulated from year to year except in accordance with Ceridian’s policies.
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3.07 Stock Option Grants. Subject to the execution and delivery of appropriate documentation related thereto, and subject to the approval of the Board of Directors, you will be granted 900,000 options (the “Options”) to purchase shares in Ceridian HCM Holding, Inc.’s common stock, which Options will all be subject to time vesting over a 4 year period. The exercise price per share will be based on the value of Ceridian HCM Holding, Inc. on the date of the grant. The Options to be awarded under this Section shall be provided subject to and in conformity with the provisions of Ceridian HCM Holding, Inc.’s stock incentive plan currently in effect (a copy of which will be provided to Executive), as same may be amended from time to time, and a non-qualified stock option agreement to be entered into by Executive and Ceridian HCM Holding, Inc..
3.08 Deductions. Ceridian Canada shall be entitled to make such deductions and withholdings from Executive’s remuneration as are by law required to be made, and as may be required by Executive’s participation in any of the benefit programs described herein.
ARTICLE 4
EARLY TERMINATION
4.01 Termination for Cause. Ceridian Canada may terminate this Agreement and Executive’s employment immediately for Cause. For the purpose hereof “Cause” shall mean any event, act or failure to act, or omission by Executive which would constitute at law in the Province of Ontario cause for dismissal, including without limitation the following:
(a) conduct involving theft or misappropriation of assets of Ceridian;
(b) fraud, embezzlement or an indictable offense;
(c) any material act of dishonestly, financial or otherwise, against Ceridian;
(d) intentional violations of law involving moral turpitude;
(e) any material violation of Ceridian’s Code of Conduct and ethics policies;
(f) breach of his obligations under any non-competition, non-solicitation or other similar agreement made with any member of Ceridian;
(g) the continued failure by Executive to attempt in good faith to perform his duties as reasonably assigned to Executive pursuant to Section 2.02 of ARTICLE 2 of this Agreement, after receiving not less than 60 days written notice of such failure and a demand to rectify such failure (which notice specifically identities the manner in which it is alleged Executive has not attempted in good faith to perform such duties.
4.02 Termination Without Cause. Ceridian Canada may terminate this Agreement and Executive’s employment without Cause immediately upon written notice to Executive. In the event of termination of Executive’s Employment pursuant to this Section 4.02, compensation shall be paid to Executive as follows:
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(a) as a lump sum, an amount equal to the one (1) year annualized amount of Executive’s then current Base Salary plus Executive Bonus or incentive compensation referenced in Section 3.03 above (at target level), less any applicable taxes and deductions;
(b) as a lump sum, an amount equal to a pro-rata portion of the Executive’s Bonus or incentive compensation referenced in Section 3.03 above (at target level), applicable to the calendar year in which the termination without Cause occurs not including any additional incentives or accelerators. The proration of this amount shall be based on the period between January 1 and the date of the termination without Cause;
(c) reasonable executive-level outplacement services, not to exceed $12,000 CAD, in value for a period of up to 12 months (or if earlier, until the first acceptance by Executive of an offer of employment), to be provided through Ceridian Canada’s preferred provider of such services;
(d) continuation of medical, dental, and prescription healthcare coverage for up to a period of twelve (12) months. Such coverage will become effective upon the general release of claims to be executed by the Executive (as contemplated in Section 4.06 below), on a retroactive basis from your effective termination date, and will continue for a period of twelve (12) months, or until Executive becomes eligible to participate in any other group health insurance program (whichever occurs first). Executive agrees to provide notice to Ceridian Canada as soon as reasonably possible of his eligibility to participate in any other group health insurance program.
4.03 Termination by Executive upon Written Notice. Executive may terminate this Agreement and his employment at any time on at least 90 days’ prior written notice to Ceridian Canada, or such shorter period of notice as may be accepted by Ceridian Canada in writing. Ceridian Canada shall be entitled to waive entirely, or abridge, such notice period, without being required to pay Executive any severance payment in lieu or other compensation in respect of such notice period.
4.04 Termination in the Event of Death or Disability. This Agreement and Executive’s employment shall terminate in the event of death or Disability of Executive, in which case the following will apply:
(a) In the event of Executive’s death, Ceridian Canada shall pay a lump sum cash payment equal to one year’s Base Salary as soon as practicable following Ceridian Canada’s receipt of notice of Executive’s death. Such amount shall be paid (i) to the beneficiary or beneficiaries designated in writing to Ceridian Canada by Executive, (ii) in the absence of such designation to the surviving spouse, or (iii) if there is no surviving spouse, or such surviving spouse disclaims all or any part, then the full amount, or such disclaimed portion, shall be paid to the executor, estate trustee or like personal representative of Executive’s estate;
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(b) In the event of Executive’s Disability, Base Salary shall be terminated as of the end of the 180-day period that Executive is unable to perform his duties on a full-time basis and that establishes that Executive suffers from a Disability;
(c) In the event of termination by reason of Executive’s death or Disability, in addition to the death or Disability benefits provided in Section 4.04(a) and Section 4.04(b), Ceridian Canada shall pay to Executive a prorated portion of the bonus compensation, if any, to which Executive would otherwise have become entitled for the fiscal year in which his death or Disability occurs had Executive remained continuously employed for the full fiscal year, calculated by multiplying such bonus compensation by a fraction, the numerator of which is the number of days in the applicable fiscal year through the date of termination and the denominator or which is 365. The amount payable pursuant to this Section 4.04(c) shall be paid within 15 days after the date such bonus would have been paid had Executive remained employed for the full fiscal year.
4.05 Termination for Good Reason. Executive may terminate his employment with Ceridian Canada for Good Reason (in accordance with the notice requirements set forth herein) and receive the compensation set out in Section 4.02.
4.06 Entire Termination Payment. The compensation provided for in this ARTICLE 4 for termination of this Agreement and Executive’s employment pursuant to Sections 4.02, 4.03, 4.04 or 4.05 shall constitute Executive’s sole remedy for such termination. Executive shall not be entitled to any other notice of termination, or termination or severance payment which otherwise may be payable to Executive under common law, statute or other agreement between Executive and Ceridian Canada, and he shall have no action, cause of action, claim or demand against Ceridian Canada or other Ceridian Affiliate or any other Person as a consequence of such termination. It shall be a condition of the payment of the compensation provided for in this ARTICLE 4 that Executive shall execute a release satisfactory to Ceridian at the time of termination of this Agreement. All cash elements of such compensation will be paid via Ceridian Canada’s payroll system with all associated taxes deducted, and will be made as soon as administratively feasible after the date on which the general release of claims required to be executed by the Executive (as contemplated herein) becomes effective.
4.07 Return of Records upon Termination. Upon termination of Executive’s employment with Ceridian Canada for any reason whatsoever, all documents, records, notebooks, and similar repositories of, or containing, trade secrets or intellectual property of Ceridian, or any Confidential Information, then in Executive’s possession or control, including copies thereof, whether prepared by Executive or others, will be promptly returned to or left with Ceridian.
ARTICLE 5
CONFIDENTIALITY AND ETHICS
5.01 Confidentiality. Executive acknowledges Ceridian’s representation that it has taken reasonable measures to preserve the secrecy of its Confidential Information. Executive will not, during the term or after the termination or expiration of this Agreement or his employment, publish, disclose, or utilize in any manner any Confidential Information obtained while employed by Ceridian Canada, except that, during Executive’s employment, Executive shall be
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entitled to use and disclose Confidential Information (i) as reasonably required to perform Executive’s duties as an employee of Ceridian, and (ii) in the reasonable conduct of the business and Executive’s role within the business. If Executive leaves the employ of Ceridian, Executive will not, without Ceridian’s prior written consent, retain or take away any drawing, writing or other record in any form containing any Confidential Information. Further, Executive agrees to comply with the terms and conditions of Ceridian’s Privacy Guidelines & Pledge of Confidentiality, the terms of which are attached hereto as Appendix A and are incorporated herein by reference and form a part of this Agreement.
5.02 Business Conduct and Ethics. During the Term, Executive will engage in no activity or employment which may conflict with the interest of Ceridian, and will comply with Ceridian’s policies and guidelines pertaining to business conduct and ethics.
5.03 Policies. Executive agrees to follow the policies and procedures established by Ceridian from time to time.
ARTICLE 6
INTELLECTUAL PROPERTY RIGHTS, DISCLOSURE
AND ASSIGNMENT
6.01 Disclosure. Executive will disclose promptly in writing to Ceridian all inventions, improvements, discoveries, software, writings and other works of authorship which are conceived, made, discovered, or written jointly or singly on Ceridian time or on Executive’s own time, providing the invention, improvement, discovery, software, writing or other work of authorship is capable of being used by Ceridian in the normal course of business. All such inventions, improvements, discoveries, software, writings and other works of authorship shall belong solely to Ceridian immediately upon conception, development, creation, production or reduction to practice, and Executive hereby waives any and all moral rights that he may have therein.
6.02 Instruments of Assignment. Executive will sign and execute all instruments of assignment and other papers to evidence transfer of Executive’s entire right, title and interest in such inventions, improvements, discoveries, software, writings or other works of authorship in Ceridian, at the request and the expense of Ceridian, and Executive will do all acts and sign all instruments of assignment and other papers Ceridian may reasonably request relating to applications for patents, patents, copyrights, and the enforcement and protection thereof. If Executive is needed, at any time, to give testimony, evidence, or opinions in any litigation or proceeding involving any patents or copyrights or applications for patents or copyrights, both domestic and foreign, relating to inventions, improvements, discoveries, software, writings or other works of authorship conceived, developed or reduced to practice by Executive, Executive agrees to do so, and if Executive leaves the employ of Ceridian, Ceridian shall pay Executive at a rate mutually agreeable to Executive and Ceridian, plus reasonable traveling or other expenses.
6.03 Ceridian’s IP Development Agreement. Without limiting the generality of the foregoing, Executive agrees to comply with the terms and conditions of Ceridian’s Intellectual Property Agreement as amended from time to time, the current terms of which are attached hereto as Appendix B and are incorporated herein by reference and form a part of this Agreement.
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ARTICLE 7
NON-COMPETITION, NON-RECRUITMENT, AND NON-DISPARAGEMENT
7.01 General. The parties hereto recognize and agree that (a) Executive is a senior executive of Ceridian and is a key executive of Ceridian, (b) Executive has received, and will in the future receive, substantial amounts of Confidential Information, (c) Ceridian’s business is conducted on a worldwide basis, and (d) provision for non-competition, non-recruitment and non-disparagement obligations by Executive is critical to Ceridian’s continued economic well-being and protection of Ceridian’s Confidential Information. In light of these considerations, this ARTICLE 7 sets forth the terms and conditions of Executive’s obligations of non-competition, non- recruitment and non-disparagement subsequent to the termination of this Agreement and/or Executive’s employment for any reason.
7.02 Non-Competition.
(a) During the term of this Agreement, Executive will devote full time and energy to furthering Ceridian’s business and will not pursue any other business activity without Ceridian’s written consent. Unless the obligation is waived or limited by Ceridian in accordance with subsection (b) of this Section 7.02, Executive agrees that during his employment and for a period of two years following termination of employment with Ceridian Canada for any reason, Executive will not directly or indirectly, alone or as a partner, officer, director, shareholder or employee of any other firm or entity, engage in any commercial activity in competition with any part of Ceridian’s business as conducted as of the date of such termination of employment or with any part of Ceridian’s contemplated business. For purposes of this subsection (a), “shareholder” shall not include beneficial ownership of less than five percent (5%) of the combined voting power of all issued and outstanding voting securities of a publicly held corporation whose stock is traded on a major stock exchange. For the avoidance of doubt “Ceridian’s business” as used herein shall include business conducted by any Ceridian Affiliates and any partnership or joint venture in which Ceridian or its Affiliates is a partner or joint venture.
(b) At its sole option Ceridian may, by written notice to Executive at any time within the Non-Compete Period, waive or limit the time and/or geographic area in which Executive cannot engage in competitive activity.
7.03 Non-Recruitment. During the term of employment and for a period of two years following termination of employment for any reason, Executive will not directly or indirectly hire any of Ceridian’s employees, or solicit any of Ceridian’s employees for the purpose of hiring them or inducing them to leave their employment with Ceridian, nor will Executive own, manage, operate, join, control, consult with, participate in the ownership, management, operation or control of, be employed by, or be connected in any manner with any person or entity which engages in the conduct proscribed in this Section 7.03. This provision shall not preclude Executive from responding to a request (other than by Executive’s employer) for a reference with respect to an individual’s employment qualifications.
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7.04 Non-Disparagement. Executive will not, during the term or after the termination or expiration of this Agreement or Executive’s employment, make disparaging statements, in any form, about Ceridian, its officers, directors, agents, employees, products or services which Executive knows, or has reason to believe, are false or misleading.
7.05 Survival and Enforceability. The obligations of this ARTICLE 7 shall survive the expiration or termination of this Agreement and Executive’s employment. Should any provision of this ARTICLE 7 be held invalid or illegal, such illegality shall not invalidate the whole of this ARTICLE 7 or the Agreement, but, rather, ARTICLE 7 shall be construed as if it did not contain the illegal part or narrowed to permit its enforcement, and the rights and obligations of the parties shall be construed and enforced accordingly. In furtherance of and not in limitation of the foregoing, Executive expressly agrees that should the duration of or geographical extent of, or business activities covered by, any provision of this ARTICLE 7 be in excess of that which is valid or enforceable under applicable law, then such provision shall construed to cover only that duration, extent or activities that may validly be covered. Executive acknowledges the uncertainty of the law in this respect and expressly stipulates that this ARTICLE 7 shall be construed in a manner that renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law. This ARTICLE 7 does not replace and is in addition to any other agreements Executive may have with Ceridian on the matters addressed herein.
ARTICLE 8
GENERAL PROVISIONS
8.01 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Ceridian Canada, whether by way of merger, consolidation, operation of law, assignment, purchase or other acquisition of substantially all of the assets or business of Ceridian Canada, and any such successor or assign shall absolutely and unconditionally assume all of Ceridian Canada’s obligations hereunder.
8.02 Notices. All notices, requests and demands given to or made pursuant hereto shall, except as otherwise specified herein, be in writing and be delivered or mailed to any such party at its address:
| (a) | Ceridian Canada Ltd. |
c/o 5th Floor – 000 Xxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx X0X 0X0
Attention: Office of General Counsel
| (b) | Xxxxxx Xxxxxx |
[Reserved].
Either party may, by notice hereunder, designate a changed address. Any notice, if mailed properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt, and shall be deemed received within the second business day thereafter or when it is actually received, whichever is sooner.
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8.03 Survival. The obligations of Section 5.01 and ARTICLE 6 shall survive the expiration or termination of this Agreement and Executive’s employment.
8.04 Captions. The various headings or captions in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement.
8.05 Governing Law. The validity, construction and performance of this Agreement shall be governed by the laws of the Province of Ontario and any and every legal proceeding arising out of or in connection with this Agreement shall be brought in the appropriate courts of the Province of Ontario, each of the parties hereby consenting to the exclusive jurisdiction of said courts for this purpose.
8.06 Construction. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law. Subject to applicable law, if there is a conflict or inconsistency between the terms of this Agreement and applicable law, the terms of this Agreement will govern to the extent of that conflict or inconsistency, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement.
8.07 Severability. If any provision of this Agreement is found to be invalid, illegal or unenforceable by a court of competent jurisdiction, such provision shall be conclusively deemed to be severable and to have been severed from this Agreement and the balance of this Agreement shall remain in full force and effect, notwithstanding such severance. To the extent permitted by law, each of the parties hereto hereby waives any law, rule or regulation that might otherwise render any provision of this Agreement invalid, illegal or unenforceable.
8.08 Waivers. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law.
8.09 Modification. Any changes or amendments to this Agreement must be in writing and signed by both parties.
8.10 Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto in reference to all the matters herein agreed upon. This Agreement replaces in full all prior employment agreements or understandings of the parties hereto with respect to such subject matter, and any and all such prior agreements or understandings are hereby rescinded by mutual agreement.
8.11 Language. C’est á la demande expresse des parties que le présent contrat a été rédigé en langue anglaise; the Parties hereto have expressly requested that the present Agreement be drafted in the English language.
8.12 Execution of Agreement. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and such counterparts together shall constitute one and the same agreement. For the purposes of this
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Section, the delivery of a facsimile copy of an executed counterpart of this Agreement shall be deemed to be valid execution and delivery of this Agreement, but the party delivering a facsimile copy shall deliver an original copy of this Agreement as soon as possible after delivering the facsimile copy.
ARTICLE 9
EXECUTIVE’S UNDERSTANDING
9.01 Executive’s Understanding. Executive recognizes and agrees that he has read and understood all and each Article, Section and paragraph of this Agreement, and that he has received adequate explanations on the nature and scope of those Articles, Sections and paragraphs which he did not understand. Executive recognizes that he has been advised that the Agreement entails important obligations on his part, and recognizes that he has had the opportunity of consulting his legal adviser before signing the Agreement.
ARTICLE 10
CONFIRMATION BY CERIDIAN HCM
10.01 Ceridian HCM has executed this Agreement for the purpose of confirming the appointment of Executive as its Chief Financial Officer. However, and for the avoidance of doubt, the parties agree that the employment relationship created hereunder shall be solely between Executive and Ceridian Canada.
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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.
| CERIDIAN CANADA LTD. | ||
| Per: | /s/ Xxxxx Xxxxx | |
| Name: | Xxxxx Xxxxx | |
| Title: | Chief Executive Officer | |
| CERIDIAN HCM, INC. | ||
| Per: | /s/ Xxxxx Xxxxx | |
| Name: | Xxxxx Xxxxx | |
| Title: | Chief Executive Officer |
|
| /s/ Xxxxxx Xxxxxx | |||||
| Witness | Xxxxxx Xxxxxx |
[SIGNATURE PAGE TO XXXXXX XXXXXX EXECUTIVE EMPLOYMENT AGREEMENT]
APPENDIX A
Privacy Guidelines & Pledge of Confidentiality
As an employee of Ceridian HCM, Inc. or one of its affiliates (collectively “Ceridian”), you will be in a position of trust and confidence, and will have access to and become familiar with Confidential Information (as that term is defined in the Employment Agreement to which this Appendix is attached) used by or in possession of Ceridian. The unauthorized disclosure to or unauthorized use by third parties of any Confidential Information, or your unauthorized use of such information, could seriously harm Ceridian’s business and cause monetary loss that would be difficult, if not impossible, to measure.
Ceridian is sensitive to the necessity of maintaining the confidentiality of Confidential Information. Ceridian recognizes both the inherent right to privacy of every individual and its obligation to preserve the confidentiality of Confidential Information kept in its files. Ceridian is also aware of the concerns about individual privacy and perceived possible abuses of Confidential Information kept in automated data banks and other forms. Ceridian has, therefore, established privacy guidelines to ensure the protection, to the best of Ceridian’s ability, of all Confidential Information in its possession, in whatever form it is kept, whether it be an automated data bank, manual (or paper) file, microfiche or any other form. Accordingly, all Confidential Information in the possession of Ceridian, whether from clients or from Ceridian’s own employees or contractors, must be handled and protected in accordance with the following principles:
| 1. | The independent consideration which you shall be entitled to receive in consideration of agreeing to the terms of this document, shall consist of employment by Ceridian in accordance with Ceridian’s written offer of employment. You acknowledge that the foregoing independent consideration consists of real, bargained-for benefits to which you would have no entitlement but for your agreement to be bound by the terms set forth in this document. You further acknowledge that you were not entitled to receive the foregoing independent consideration prior to agreeing to the terms of this document. The terms of this document shall and do form an integral part of the terms of your employment with Ceridian, and shall be considered incorporated into the terms of your offer of employment and / or employment agreement with Ceridian. |
| 2. | You acknowledge Ceridian’s representation that it has taken and intends to take reasonable measures to preserve the secrecy of its Confidential Information, including, but not limited to, requiring you to agree to the terms of this document, as a condition of and part of the terms of your employment with Ceridian. You will hold all Confidential Information in the strictest confidence, and will not directly or indirectly copy, reproduce, disclose or divulge, or permit access to or use of, or obtain any benefit from, the Confidential Information or directly or indirectly use the Confidential Information other than as (a) as reasonably required to perform your duties as an employee of Ceridian, or (b) in the reasonable conduct of the business and your role within the business. For greater certainty, you shall not use the Confidential Information directly or indirectly in any business other than the business of Ceridian, without the prior written consent of Ceridian. Confidential Information is the exclusive property of Ceridian or its Clients (as the case may be), and you will not divulge any Confidential Information to any person except to Ceridian’s qualified employees or advisers or other third parties with whom Ceridian has confidential business relations, and you will not, at any time, use Confidential Information for any purpose whatsoever, except as required to perform your duties as an employee of Ceridian or in the reasonable conduct of the business or your role within the business. Without limiting the generality of the foregoing, you acknowledge and agree that Confidential Information received from a Client is to be used only for the purposes intended by the Client when entering into an agreement with Ceridian, and will not be used for any other purpose. Confidential Information will only be kept for the limited period of time necessary for Ceridian to fulfil its obligations. Regardless of the reason for termination of your employment (and whether or not you or Ceridian terminate the employment relationship): (a) you will not after the term of your employment, disclose Confidential Information which you may learn or acquire during your employment to any other person or entity or use any Confidential Information for your own benefit or for the benefit of another; and (b) you will immediately deliver to Ceridian all property and Confidential Information in your possession or control which belong to Ceridian. |
| 3. | You acknowledge that your breach of the terms of this document may cause irreparable harm to Ceridian and that such harm may not be compensable entirely with monetary damages. If you violate the terms of this document, Ceridian may seek injunctive relief or any other remedy allowed at law, in equity, or under the terms of this agreement. In connection with any suit by Ceridian hereunder, Ceridian shall be entitled to an accounting, and to the repayment of all profits, compensation, commissions, fees or other remuneration which you have realized, as a result of the violation of the terms of this agreement which is the subject of the suit. In addition to the foregoing, Ceridian shall be entitled to collect from you any reasonable attorney’s fees and costs incurred by Ceridian in bringing any successful action against you or in otherwise successfully enforcing the terms hereof against you. You acknowledge and agree that nothing herein shall affect Ceridian’s rights to bring an action in a court of law for any legal claim against any third party who aids you in violating the terms of this agreement or who benefits in any way from your violation hereof. |
| 4. | You understand and agree that the terms of this document shall apply no matter when, how or why your employment terminates and regardless whether the termination is voluntary or involuntary, and that the terms shall survive the termination of your employment. |
| 5. | If any one or more of the terms of this document are deemed to be invalid or unenforceable by a court of law, the validity, enforceability and legality of the remaining provisions will not, in any way, be affected by or impaired thereby; and, notwithstanding the foregoing, all provisions hereof shall be enforced to the extent that is reasonable. |
| 6. | Ceridian’s decision to refrain from enforcing a breach of any term of this document will not prevent Ceridian from enforcing the terms hereof as to any other breach that Ceridian discovers and shall not operate as a waiver against any future enforcement of any part of this document, any other agreement with you or any other agreement with any other employee of Ceridian. |
| 7. | You hereby represent and agree with Ceridian that: (a) you are not bound or restricted by a non-competition agreement, a confidentiality or non-disclosure agreement, or any other agreement with a former employer or other third party, which would conflict with the terms of this offer; and (b) you will not use any trade secrets or other intellectual property belonging to any third party while performing services for Ceridian; and (c) you are of legal age, under no legal disability, have full legal authority to enter into this agreement and have had a reasonable and adequate opportunity to consult with independent counsel regarding the effect of this document, the sufficiency of the independent consideration provided to you, and the reasonableness of the restrictions set forth herein. |
Ceridian employs a Privacy Officer who is charged with ensuring that Ceridian complies with all privacy-related obligations imposed by statute or contract. Any questions regarding the collection, use, access, disclosure, retention or destruction of Confidential Information should be directed to the Privacy Officer.
Adherence to the guidelines set out above is a requirement for continued employment with Ceridian. Material breaches of these guidelines may result in discipline up to and including dismissal, or in the case of contractors, cancellation of your contract with Ceridian.
APPENDIX B
Intellectual Property Agreement
In consideration of Ceridian HCM, Inc. or one of its affiliates (collectively “Ceridian”) offering me employment, I hereby expressly acknowledge and agree as follows:
1.0 All Ceridian developments which I may solely or jointly author, conceive, or develop, or reduce to practice, or cause to be authored, conceived, or developed, or reduced to practice, during the term of my employment with Ceridian (collectively “Developments”) are the property of Ceridian. I will promptly make fullest disclosure to Ceridian of all Ceridian Developments. I further agree to execute such documents and do such things as Ceridian may reasonably require from time to time to assign to Ceridian all right, title, and interest in and to all Ceridian Developments, and agree, at Ceridian’s expense, during the term of my employment and thereafter, to execute any and all applications or assignments relating to intellectual property including patents, copyrights, industrial designs and trademarks, and to execute any proper oath or verify any proper document in connection with carrying out the terms of this agreement.
2.0 In the event Ceridian is unable for any reason whatsoever to secure my signature to any lawful and necessary documents relating to paragraph 1 hereof and to apply for, or to prosecute, any applications for letters patent, copyright, designs or trademarks (foreign or domestic) in respect to the Ceridian Developments, I hereby irrevocably designate and appoint Ceridian and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent, copyright, designs or trademarks thereon with the same legal force and effect as if executed by me.
3.0 At the time of leaving the employ of Ceridian I will deliver to Ceridian, and will not keep in my possession, nor deliver to anyone else, any and all information in any tangible form and all copies, partial copies, notes, summaries, records, descriptions, drawings, reports and other documents, data or materials of or relating to the Ceridian Developments or which contain or make reference to the Ceridian Developments, in my possession or control.
4.0 I hereby waive for the benefit of Ceridian and, where legally possible, assign to Ceridian any moral rights I have, or may in the future have, in any Ceridian Developments.
5.0 This agreement shall extend to and enure to the benefit of the successors and assigns of Ceridian and shall be binding upon me and my heirs, executors, administrators, successors and assigns.
