SEVERANCE AND NON-COMPETITION AGREEMENT
Exhibit 10.55
SEVERANCE AND NON-COMPETITION AGREEMENT
This Separation and Non-Competition Agreement is made this 18 day of March 2010 by and between Manhattan Associates (“Company”) and Xxxxx Xxxxx (“Executive”).
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, and in consideration of the mutual promises and covenants set forth in this Agreement, the parties agree as follows:
| 1. | Employment. Company has agreed to employ Executive as Executive Vice President, Global Operations in accordance with the terms and conditions set forth in this Agreement and Executive has accepted such employment. This agreement governs the terms by which Executive shall receive certain payments in return for a promise not to compete with the business of the Company in the event of a termination. |
| 2. | Severance. In the event of a termination or Constructive Termination (as defined below) of employment by the Company or its successors, other than a termination for cause, Executive shall receive a severance payment equal to Twelve (12) months of Executive’s then current base salary, subject to all standard deductions, payable in Twelve (12) equal monthly payments from date of termination., including COBRA payments for Executive’s family for medical and dental coverage. Company’s obligation to make the severance payment shall be conditioned upon Executive’s (i) execution of a release agreement in a form reasonably acceptable to the Company, and consistent with the terms of this Agreement and any other Agreements, whereby Executive releases the Company from any and all liability and claims of any kind, and (ii) compliance with the restrictive covenants and all post-termination obligations contained in this Agreement. Further, in the event of a termination, other than a termination for cause, Executive shall have thirty (30) in which to exercise his vested options. |
| 3. | Cause. For purposes of this Agreement, Cause shall include but not be limited to an act or acts or an omission to act by the Executive involving (i) willful and continual failure to substantially perform his duties with the Company (other than a failure resulting from the Executive’s Disability) and such failure continues after written notice to the Executive providing a reasonable description of the basis for the determination that the Executive has failed to perform his duties, (ii) indictment for a criminal offense other than misdemeanors not disclosable under the federal securities laws, (iii) breach of this Agreement in any material respect and such breach is not susceptible to remedy or cure or has not already materially damaged the Company, or is susceptible to remedy or cure and no such damage has occurred, is not cured or remedied reasonably promptly after written notice to the Executive providing a reasonable description of the breach, or (iv) conduct that the Board of Directors of the Company has determined, in good faith, to be dishonest, fraudulent, unlawful or grossly negligent or which is not in compliance with the Company’s Code of Conduct or similar applicable set of standards or conduct and business practices set forth in writing and provided to the Executive prior to such conduct. |
| 4. | Change of Control. For purposes of this Agreement Change of Control shall mean the happening of an event that shall be deemed to have occurred upon the earliest to occur of the following events: (i) the date the stockholders of the Company (or the Board, if stockholder action is not required) approve a plan or other arrangement pursuant to which the Company will be dissolved or liquidated; (ii) the date the stockholders of the Company (or the Board, if stockholder action is not required) approve a definitive agreement to sell or otherwise dispose of all or substantially all of the assets of the Company; or (iii) the date the stockholders of the Company (or the Board, if stockholder action is not required) and the stockholders of the other constituent corporations (or their respective boards of directors, if and to the extent that stockholder action is not required) have approved a definitive agreement to merge or consolidate the Company with or into another corporation, other than, in either case, a merger or consolidation of the Company in which holders of shares of the Company’s voting capital stock immediately prior to the merger or consolidation will have at least fifty percent (50%) of the ownership of voting capital stock of the surviving corporation immediately after the merger or consolidation (on a fully diluted basis), which voting capital stock is to be held by each such holder in the same or substantially similar proportion (on a fully diluted basis) as such holder’s ownership of voting capital stock of the Company immediately before the merger or consolidation. |
| 5. | Constructive Termination. For purposes of this Agreement, Constructive Termination shall mean a situation after a Change of Control where the failure by the Company to provide the Executive with compensation and benefits substantially comparable, in the aggregate, to those provided for under the employee benefit plans, programs and practices in effect immediately prior to the Change of Control. |
| 6. | Non-Competition. Executive agrees that he will not work for any of the direct competitors to Company listed in Schedule A for a period of Twelve (12) months from the date of termination without written consent of Employer. Further, Executive agrees that they will not recruit or hire, another Executive of Employer for a period of Twelve (12) months from the date of termination or cause another Executive of Employer to be hired by any competitor of Employer for a period of Twelve (12) months from the date of termination. |
| 7. | Effect of violations by Executive. Executive agrees and understands that any action by him in violation of this Agreement shall void Employer’s payment to the Executive of all severance monies and benefits provided for herein and shall require immediate repayment by the Executive of the value of all consideration paid to Executive by Employer pursuant to this Agreement, and shall further require Executive to pay all reasonable costs and attorneys’ fees in defending any action Executive brings, plus any other damages to which the Employer may be entitled. |
| 8. | Severability. If any provision, or portion thereof, of this Agreement is held invalid or unenforceable under applicable statute or rule of law, only that provision shall be deemed omitted from this Agreement, and only to the extent to which it is held invalid and the remainder of the Agreement shall remain in full force and effect. |
| 9. | Opportunity for review. Executive understands that he shall have the right to have twenty-one (21) days from the date of receipt of this Agreement to review this document, and within seven (7) days of signing this NON-COMPETITION AGREEMENT, to revoke this Agreement. Employer agrees and Executive understands that he does not waive any rights or claims that may arise after the date this Agreement is executed. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD ACCESS TO INDEPENDENT LEGAL COUNSEL OF THEIR OWN CHOOSING IN CONNECTION WITH ENTERING INTO THIS AGREEMENT, AND THE PARTIES HEREBY ACKNOWLEDGE THAT THEY FULLY UNDERSTAND THE TERMS AND CONDITIONS OF THIS AGREEMENT AND AGREE TO BE FULLY BOUND BY AND SUBJECT THERETO. |
I have read this Agreement, I understand its contents, and I willingly, voluntarily, and knowingly accept and agree to the terms and conditions of this Agreement. I acknowledge and represent that I received a copy of this Agreement on March 19th, 2010.
| EXECUTIVE: | ||||
| /s/ Xxxxx Xxxxx | 3/18/10 | |||
| Xxxxx Xxxxx | Date | |||
| EMPLOYER: | ||||
| /s/ Xxxxx X. Xxxxxxxxxx | 3/18/10 | |||
| Xxxxx X. Xxxxxxxxxx | Date | |||
| President and Chief Executive Officer | ||||
SCHEDULE A
COMPETITORS
| Aldata |
Xxxxxxx Toledo International/SofTechnics | |
| Alphameric/Torex American |
Navis | |
| Software/Logility ANT USA |
Nistevo | |
| AquiTec |
NSB NTE | |
| Ariba |
OAT Systems | |
| AspenTech |
Oracle/Retek/ProfitLogic/G-Log | |
| Catalyst International |
Viastore Systems/Provia | |
| Xxxxxxxxxx Systems |
Paperless Warehousing | |
| ClickCommerce |
Radio Beacon | |
| DemandTec |
Red Prairie | |
| Dematic |
Retalix | |
| Descartes |
RF Code | |
| ONE Network/Elogex |
SAP SAF | |
| FASCOR |
AG | |
| Galleria-rts |
SAS/MarketMax | |
| Xxxxx |
Xxxx Technology | |
| GERS |
SBC/Sterling/Yantra | |
| GlobeRanger |
SignalDemand | |
| GT Nexus |
SSA Global | |
| Highjump/3M |
Swisslog | |
| HK Systems/Irista |
TallShips Solutions | |
| i2 |
Tomax | |
| I BS |
Transplace | |
| I LOG |
TrueDemand | |
| lnfor |
TXT e-Solutions | |
| Intentia |
Viewlocity | |
| Island Pacific |
||
| JDA/Manugistics JustEnough Kewill Xxxxxx |
Any successor company to any company listed above. Any new company formed by or a division of an existing company formed by or on behalf of Employee. |
Initial Here: Manhattan PFS Executive EC
