November 26, 2012
Mr. Ashar Aziz
c/o FireEye, Inc.
1440 McCarthy Blvd.
Milipitas, CA 95035
As weve discussed, as part of our executive transition at FireEye, Inc. (the Company), you have agreed to step down as the Chief Executive Officer (the CEO) of the Company and remain as Founder, Chief Technology Officer and Chief Strategy Officer. You will report to the Companys CEO and shall perform the duties and responsibilities customary for such position and such other related duties as are assigned by the CEO.
You will also continue to serve as a member of the Companys Board of Directors (the Board) and will be appointed Vice-Chairman of the Board. The Board may, however, remove you as Vice-Chairman of the Board at any time, for any or no reason, with or without notice at its sole and absolute discretion. Notwithstanding the foregoing, for all purposes under this letter agreement, your removal by the Board as Vice-Chairman without your consent at any time prior to the later of (i) the release of any market stand-off imposed by the Company or the managing underwriter of the Companys first underwritten public offering of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended (an IPO) and (ii) the first annual general meeting of the Companys stockholders following such IPO shall be treated as a Termination Without Cause (provided a Separation occurs).
The terms described herein were effective beginning on November 19, 2012 (the Transition Effective Date).
Cash Compensation and Employee Benefits
1. Cash Compensation. Beginning on the Transition Effective Date, the Company will continue to pay you a starting salary at the rate of $300,000 per year, less required deductions and withholdings, payable in accordance with the Companys standard payroll schedule. This salary will be subject to upward adjustment pursuant to the Companys employee compensation policies in effect from time to time and may not be reduced without your consent.
2. Bonus. In addition, you will continue to be eligible to be considered for an annual target incentive bonus of up to $150,000 for each fiscal year of the Company. The bonus (if any) will be awarded based on objective or subjective criteria established and approved by the Board, which shall have the sole discretion to determine whether you have earned any bonus and, if so, the amount of such bonus. The determinations of the Board with respect to your bonus will be final and binding. Your annual target incentive bonus will be subject to upward adjustment pursuant to the Companys employee compensation policies in effect from time to time and may not be reduced without your consent.
3. Employee Benefits. As a regular employee of the Company, you may participate in the Company-sponsored benefits generally available to executive officers of the Company, subject to the applicable terms of the applicable benefit plans. In addition, you will be entitled to paid vacation in accordance with the Companys vacation policy, as in effect from time to time.
Mr. Ashar Aziz
November 26, 2012
4. Severance Benefits. For the avoidance of doubt, the benefits described in this Section 4 will apply if, following the Transition Effective Date but prior to the expiration of the underwriter-imposed lockup in connection with the Companys IPO, (i) the Company experiences a Change in Control and within 24 months following such transaction you are subject to an Involuntary Termination (a Change in Control Termination) or (ii) you are subject to a Termination Without Cause either prior to, or more than 24 months following, a Change in Control of the Company:
a. General. You shall not be entitled to any benefits set forth in this Section 4 unless you (i) have returned all Company property in your possession, (ii) have resigned as a member of the Boards of the Company and all of its subsidiaries, as well as from any other positions with such entities, to the extent applicable, and (iii) have executed a general release of all claims that you may have against the Company or persons affiliated with the Company (a Release). The release must be in the form prescribed by the Company, without alterations. You must execute and return the release on or before the date specified by the Company in the prescribed form (the Release Deadline). The Release Deadline will in no event be later than 50 days after your Separation. If you fail to return the release on or before the Release Deadline, or if you revoke the release, then you will not be entitled to the benefits described in this Section 4.
b. Cash Severance. The Company will pay you an amount equal to twelve (12) months of your base salary, less required withholdings (and, in the event of a Change in Control Termination, an additional amount equal to your annual target bonus, less required withholdings), paid in equal installments over the first 12 months following your Separation. Your base salary (and, if applicable, annual target bonus) will be paid at the rate in effect at the time of your Separation and in accordance with the Companys standard payroll procedures. The severance payments will commence following the effective date of the release and within 60 days after your Separation and, once they commence, will include any unpaid amounts accrued from the date of your Separation. However, if the 60-day period described in the preceding sentence spans two calendar years, then the payments will in any event begin in the second calendar year.
c. Section 409A. For purposes of Section 409A of the Code, each payment under Section 4(b) is hereby designated as a separate payment. If the Company determines that you are a specified employee under Section 409A(a)(2)(B)(i) of the Code at the time of your Separation, then (i) the severance payments under Section 4(b), to the extent that they are subject to Section 409A of the Code, will commence on the first business day following (A) expiration of the six-month period measured from your Separation or (B) the date of your death and (ii) the installments that otherwise would have been paid prior to such date will be paid in a lump sum when the severance payments commence, without interest.
5. Legal Fees. The Company will pay all reasonable legal fees, not to exceed $17,500, incurred by you in connection with the negotiation and drafting of this letter agreement directly to Gunderson Dettmer, LLP.
II. Equity Awards.
You have been granted options to purchase shares of the Companys Common Stock, the vesting terms of which are amended and restated below, and certain of which have been exercised by you pursuant to the terms of promissory notes entered into between you and the Company (as amended herein, collectively, the Promissory Notes). As described in each applicable Stock Option Agreement, if you do not vest in all or any portion of the award for any reason, the unvested portion of the award will be automatically cancelled, if the award is an option, or subject to repurchase by the Company, if the award is restricted stock issued upon early exercise of an option, in each case at the time your applicable service with the Company terminates. The standard vesting terms are as set forth in the chart below. For avoidance of doubt, if you cease to be an employee of the Company, but continue as a member of the Board, your vesting will continue during such Board service. If the vesting terms stated below are different than those contained in your award agreements, the terms in this letter will govern.
Mr. Ashar Aziz
November 26, 2012
|Grant ID||Grant Date||Vesting
|Vesting Schedule||Future Vesting|
|2009-1||12/28/2009||6/25/2009||2,170,794||1,863,264||15% immediately; 1/48th remaining monthly||38,441 shares on the 25th of each month until fully vested|
|2010-1||6/25/2010||6/25/2009||856,218||734,921||15% immediately; 1/48th remaining monthly||15,162 shares on the 25th of each month until fully vested|
|2011-1||5/27/2011||6/1/2011||926,640||308,880||1/48 monthly||19,305 on the 1st of each month until fully vested|
|2011-2||5/27/2011||12/29/2012||555,984||0||1/48 monthly||11,583 shares on the 29th of each month beginning on December 29, 2012|
|2012-1||3/30/2012||6/26/2012||1,618,439||147,132||1/44th per month for the first 6 months; 1/132nd per month for the next 6 months; 1/44th of the shares each month thereafter||36,782 shares on each of November 26 and December 26, 2012. 12,260 shares per month on the 26 of each of January through June 2013. 36,782 shares per month on the 26th of each month beginning on July 26, 2012.|
|2012-2||5/25/2012||5/25/2012||484,425||0||All of the Shares subject to this option shall vest upon the earliest of (x) the 12-month anniversary of the Vesting Commencement Date, (y) the date on which a Chief Executive Officer of the Company other than Optionee commences employment with the Company and (z) the closing date of the first sale of the Companys Common Stock pursuant to an IPO, provided that in each case the Optionee remains in continuous Service through the applicable date.||All of the Shares subject to this option shall vest upon the earliest of (x) the 12-month anniversary of the Vesting Commencement Date, (y) the date on which a Chief Executive Officer of the Company other than Optionee commences employment with the Company and (z) the closing date of the first sale of the Companys Common Stock pursuant to an IPO, provided that in each case the Optionee remains in continuous Service through the applicable date.1|
1 For the avoidance of doubt, such acceleration will be in addition to the 500,000 shares referenced in Section 2.a. on the following page.
Mr. Ashar Aziz
November 26, 2012
Additional Equity Award Terms.
1. Accelerated Vesting in Connection with a Change in Control. You may become entitled to accelerated vesting of your awards under certain circumstances as described below. In no event would you vest in a greater number of shares than the total number subject to the award at the date of grant. Except as set forth below, no vesting acceleration will apply to your equity awards in connection with or as a result of a Change in Control.
a. If the Company is subject to a Change in Control when you are no longer an employee, but remain a member of the Board, then one hundred percent (100%) of your then-unvested equity awards will vest.
b. If the Company is subject to a Change in Control when you are an employee of the Company (and regardless of whether you are then a member of the Board), if you choose to terminate employment with the Company or successor and sign a Release by the Release Deadline, then the vesting with respect to your then-unvested equity awards will be determined by adding 24 months to the actual period of service that you have completed with the Company.
2. Accelerated Vesting Not in Connection with a Change in Control. In addition, provided you have not previously become entitled to accelerated vesting under Section 1 above, you may become entitled to accelerated vesting under certain circumstances as described below. Except as set forth below or in Section 1 above, no vesting acceleration will apply to your equity awards.
a. New CEO Employment. When the Companys next CEO other than you begins his employment with the Company, you will vest in 500,000 shares. For the avoidance of doubt, such acceleration will be in addition to the 484,425 shares subject to the May 25, 2012 option described on the prior page.
b. Effectiveness of IPO. Upon the effectiveness of the Companys IPO and commencement of public trading in the Companys stock while you are still an employee or member of the Board, you will vest in 500,000 shares.
c. 6-Month Anniversary of IPO. If you are still an employee or member of the Board on the 6-month anniversary of the effectiveness of the Companys IPO, you will vest in 500,000 shares.
d. Termination Without Cause. If after the Transition Effective Date, but prior to the expiration of the underwriter-imposed lockup in connection with the Companys IPO, you are subject to a Termination Without Cause and sign a Release by the Release Deadline, then the vesting with respect to your then-unvested equity awards will be determined by adding 12 months to the actual period of employment that you have completed with the Company. In addition, if you are entitled to acceleration under the preceding sentence and the Company does not either maintain you as a member of the Board or nominate you to the Board through the later to occur of the expiration of the underwriter-imposed lockup in connection with the Companys IPO and the first annual meeting of stockholders as a public company, then the vesting with respect to your then-unvested equity awards will be determined by adding 12 months to the actual period of service that you have completed with the Company.
3. Rules of Construction for Acceleration. In all cases involving acceleration (other than acceleration which is determined by adding a specific number of months to your period of service), the shares to be accelerated will be: (i) first, allocated towards each particular grant pro-rata based on the number of unvested shares subject to each then-outstanding equity award as of the applicable acceleration event, and (ii) second, accelerated shares allocated with respect to a specific grant shall be applied to that grant on a proportional basis for the remainder of the vesting schedule as of the applicable acceleration event (i.e., if 500,000 shares are to be accelerated for a particular grant and such grant has 25 months of vesting remaining, then each of the remaining 25 vesting dates for that grant shall cover 20,000 less shares).
4. Secondary Liquidity. If, following the Transition Effective Date a Qualifying Liquidity Event occurs (a Secondary Opportunity), then if you wish to sell some of your vested and owned shares of the Company Common Stock in such Secondary Opportunity, the Company will use its reasonable efforts to facilitate the sale by you to investors of up to the lesser of: (x) 1,000,000 shares of your vested and owned shares of Company Common Stock or (y) forty percent (40%) of the aggregate number of shares of Company Common Stock that such investors are willing to purchase in the Secondary Opportunity, in either case, on substantially the same terms proposed by such investors in the Secondary Opportunity. Qualifying Liquidity Event means (i) any equity round of financing that raises at least $30,000,000 in gross proceeds for the Company that is consummated prior the Companys IPO, provided that one or more of the participating investors offers to purchase shares of the Companys Common Stock from any of the Companys existing stockholders, and (ii) the public offering of the Companys common stock that next follows its IPO.
Mr. Ashar Aziz
November 26, 2012
5. Initial Public Offering Liquidity. If any of the Companys executive officers are offered the opportunity to sell shares of the Companys Common Stock in connection with the Companys IPO, you will be offered the same opportunity on the same terms and conditions as apply to such other executive officers.
6. Promissory Notes. The Company agrees that each Promissory Note will be modified to effect the following changes:
The Term of each Promissory Note will be modified to extend until the first to occur of (x) December 31, 2017 OR (y) (1) the day prior to the date the Company files a registration statement with the Securities and Exchange Commission for initial public offering of its equity securities under the Securities Act of 1933, as amended (the Securities Act), (2) the date the Company is acquired by a company whose securities are publicly traded, if, in either case, the existence of the Promissory Notes would violate any applicable law (including, without limitation, the Sarbanes-Oxley Act of 2002), or (3) the date the Company determines, in its discretion, that any change in the Companys or your status would cause the loans evidenced by this Promissory Notes to be deemed a prohibited extension or maintenance of credit by the Company (or any successor entity) under Section 402 of the Sarbanes-Oxley Act of 2002 or any other applicable law;
The Rate of Interest payable under each Promissory Note will be reset to be equal to the minimum interest rate required to avoid the imputation of interest under the Code, determined as of the Transition Effective Date; and
Section 4(a) of each Promissory Note will be deleted in its entirety.
III. General Provisions
1. General. You are responsible for any and all taxes, including withholding taxes that legally apply to the payments and benefits provided to you by the Company, and all forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable income, payroll and similar withholding taxes and other deductions required by law. You are encouraged to obtain your own tax advice regarding your compensation from the Company. You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board related to tax liabilities arising from your compensation.
2. Section 280G. If any payments and other benefits provided for in this letter agreement or otherwise constitute parachute payments within the meaning of Section 280G of the Code and, but for this paragraph, would be subject to the excise tax imposed by Section 4999 of the Code, then payments and other benefits will be payable to you either in full or in such lesser amounts as would result, after taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, in your receipt on an after-tax basis of the greatest amount of payments and other benefits, by reducing payments in the following order: (i) cancellation of accelerated vesting of stock options that are out-of-the-money; (ii) reduction in cash payments; (iii) cancellation of accelerated vesting of all equity awards that are not out-of-the-money stock options; and (iv) other employee benefits. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant.
B. Interpretation, Amendment and Enforcement. As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. To protect the interests of the
Mr. Ashar Aziz
November 26, 2012
Company, as a condition of your continued employment you will have signed the Companys Proprietary Information and Inventions Agreement (the PIIA) on or prior to the Transition Effective Date. You represent that your signing of this letter agreement and the PIIA, and your continuation of employment with the Company, will not violate any agreement currently in place between yourself and current or past employers. You agree to be bound by the policies and procedures of the Company now or hereafter in effect relating to the conduct of employees.
This letter agreement (together with the PIIA, your Indemnification Agreement with the Company dated June 23, 2009, the Companys 2004 Stock Plan, the Companys 2008 Stock Plan, any stock option agreement or stock grant issued thereunder (after giving effect to the provisions described herein, where applicable) the Promissory Notes (and Stock Pledge Agreements referenced therein, after giving effect to the provisions described herein) and the Amended and Restated Voting Agreement dated December 10, 2010 (as amended from time to time) between the Company and the Existing Stockholders (as defined therein, but including you)), supersede and replace any prior agreements, representations or understandings (whether written, oral, implied or otherwise) between you and the Company (including without limitation the letter agreements between you and the Company dated August 31, 2004, March 31, 2005, and November 29, 2011) and constitute the entire agreement between you and the Company regarding the subject matter set forth herein. This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company.
This letter agreement shall be construed and enforced in accordance with the internal laws of the State of California (without regard to its laws relating to choice-of-law or conflict-of-laws). You and the Company shall submit to mandatory and exclusive binding confidential arbitration of any controversy or claim arising out of, or relating to, this letter agreement or any breach hereof or otherwise arising out of, or relating to, your employment with the Company or the termination thereof, provided, however, that the parties retain their right to, and shall not be prohibited, limited or in any other way restricted from, seeking or obtaining injunctive relief from a court having jurisdiction over the parties related to the improper use, disclosure or misappropriation of a partys proprietary, confidential or trade secret information. Such arbitration shall be conducted through JAMS in the State of California, Santa Clara County, before a single neutral arbitrator, in accordance with the JAMS then-current rules for the resolution of employment disputes. The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based. You shall bear only those costs of arbitration you would otherwise bear had you brought a covered claim in court. Judgment upon the determination or award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This agreement to arbitrate does not restrict your right to file administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict the employees ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, the parties agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.
C. At-Will Service Relationship. Your service relationship with the Company (whether as a Board member, as Vice Chairman of the Board, or as an employee of the Company) is for no specific period of time. Your service with the Company will be at will, meaning that either you or the Company may terminate your service at any time and for any reason, with or without cause (subject to the terms of this letter agreement). Any contrary representations that may have been made to you are superseded by this letter agreement. This is the full and complete agreement between you and the Company on this term.
D. Nondisparagement. You agree that you will not disparage the Company or its products with any written or oral statement. Nothing in this paragraph shall prohibit you from providing truthful information in response to a subpoena or other legal process.
E. Definitions. The following terms have the meaning set forth below wherever they are used in this letter agreement:
Cause means (a) your unauthorized use or disclosure of the Companys confidential information or trade secrets, which use or disclosure causes material harm to the Company, (b) your material breach of any agreement between you and the Company, (c) your material failure to comply with
Mr. Ashar Aziz
November 26, 2012
the Companys written policies or rules, (d) your conviction of, or your plea of guilty or no contest to, a felony under the laws of the United States or any State, (e) your gross negligence or willful misconduct, (f) your continuing failure to perform assigned duties after receiving written notification of the failure from the Board, or (g) your failure to cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested your cooperation; provided, however, that Cause will not be deemed to exist in the event of Subsections (b), (c) and (f) above unless you have been provided with (i) 30 days written notice by the Board of the act or omission constituting Cause and (ii) 30 days opportunity to cure such act or omission, if capable of cure (as determined by the Board in its sole discretion).
Change in Control means (a) the consummation of a merger or consolidation of the Company with or into another entity or (b) the dissolution, liquidation or winding up of the Company. The foregoing notwithstanding, a merger or consolidation of the Company does not constitute a Change in Control if immediately after the merger or consolidation a majority of the voting power of the capital stock of the continuing or surviving entity, or any direct or indirect parent corporation of the continuing or surviving entity, will be owned by the persons who were the Companys stockholders immediately prior to the merger or consolidation in substantially the same proportions as their ownership of the voting power of the Companys capital stock immediately prior to the merger or consolidation. The foregoing notwithstanding, a transaction will not constitute a Change in Control unless such transaction also constitutes a change in control event as defined in Treasury Regulation §1.409A-3(i)(5), without regard to any alternative percentages thereunder.
Code means the Internal Revenue Code of 1986, as amended.
Involuntary Termination means either (a) your Termination Without Cause or (b) your Resignation for Good Reason.
Resignation for Good Reason means a Separation as a result of your resignation within 12 months after one of the following conditions has come into existence without your consent: (a) a material reduction of your base salary as set forth herein or as such base salary may be increased during the course of your employment with the Company; (b) a material reduction of your target bonus as set forth herein or as increased during the course of your employment with the Company; (c) a material reduction in your duties, authority, reporting relationship or responsibilities, including (i) in the event of a Change in Control, the assignment of responsibilities, duties, reporting relationship or position that are not at least the substantial functional equivalent of your position occupied immediately preceding such Change in Control, including the assignment of responsibilities, duties, reporting relationship or position that are not in a substantive area that is consistent with your experience and the position that you occupied prior to such Change in Control or (ii) a material diminution in the budget and number of subordinates over which you retain authority; (d) a requirement that you relocate to a location more than thirty-five (35) miles from your then-current office location; (e) a material violation by the Company of a material term of any employment, severance or change of control agreement between you and the Company; or (f) a failure by any successor entity to the Company to assume this letter agreement. A Resignation for Good Reason will not be deemed to have occurred unless you give the Company written notice of the condition within 90 days after the condition comes into existence and the Company fails to remedy the condition within 30 days after receiving your written notice.
Separation means a separation from service, as defined in the regulations under Section 409A of the Code.
Termination Without Cause means a Separation as a result of a termination of your employment by the Company without Cause, provided you are willing and able to continue performing services within the meaning of Treasury Regulation 1.409A-1(n)(1).
* * *
Mr. Ashar Aziz
November 26, 2012
While you render services to the Company, whether as a Board member, as Vice Chairman or as CTO, you agree not to engage in any other employment, consulting or other business activity (whether full-time or part-time) that would create a conflict of interest with the Company, including providing advice or otherwise providing services to any competitor of the Company.
The Company respects the right of every employer to protect its confidential, proprietary and trade secret information and therefore, you are expected not to disclose to anyone at the Company, or to use in any manner, any such information from any former employer at any time. The Company also expects you to comply with all other legal obligations you have to any former employers, including any employee or customer non-solicitation obligations and any nondisparagement obligations you have with any other party.
Please indicate your acceptance of this letter agreement, and confirmation that it contains our complete agreement regarding the terms and conditions of your employment, by signing the bottom portion of this letter agreement and returning a copy to me via email.
|Very truly yours,|
|By:||/s/ Gaurav Garg|
I have read and accept this the terms set forth in this letter agreement:
|/s/ Ashar Aziz|
|Signature of Ashar Aziz|
Exhibit A: Proprietary Information and Inventions Agreement
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT
The following confirms and memorializes an agreement that FIREEYE, INC., a Delaware corporation (the Company) and I (Ashar Aziz) have had since the commencement of my employment (which term, for purposes of this agreement, shall be deemed to include any relationship of service to the Company that I may have had prior to actually becoming an employee) with the Company in any capacity and that is and has been a material part of the consideration for my employment by Company:
1. I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict with this Agreement or my employment with Company. I will not violate any agreement with or rights of any third party or, except as expressly authorized by Company in writing hereafter, use or disclose my own or any third partys confidential information or intellectual property when acting within the scope of my employment or otherwise on behalf of Company. Further, I have not retained anything containing any confidential information of a prior employer or other third party, whether or not created by me.
2. Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights, sui generis database rights and all other intellectual property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by me during the term of my employment with Company to and only to the fullest extent allowed by California Labor Code Section 2870 (which is attached as Appendix A) (collectively Inventions) and I will promptly disclose all Inventions to Company. Without disclosing any third party confidential information, I will also disclose anything I believe is excluded by Section 2870 so that the Company can make an independent assessment. I hereby make all assignments necessary to accomplish the foregoing. I shall further assist Company, at Companys expense, to further evidence, record and perfect such assignments, and to perfect, obtain, maintain, enforce, and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint Company as my agent and attorney-in-fact, coupled with an interest and with full power of substitution, to act for and in my behalf to execute and file any document and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me. If I wish to clarify that something created by me prior to my employment that relates to Companys actual or proposed business is not within the scope of the foregoing assignment, I have listed it on Appendix B in a manner that does not violate any third party rights or disclose any confidential information. Without limiting Section 1 or Companys other rights and remedies, if, when acting within the scope of my employment or otherwise on behalf of Company, I use or disclose my own or any third partys confidential information or intellectual property (or if any Invention cannot be fully made, used, reproduced, distributed and otherwise exploited without using or violating the foregoing), Company will have and I hereby grant Company a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such confidential information and intellectual property rights.
3. To the extent allowed by law, paragraph 2 includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as moral rights, artists rights, droit moral, or the like (collectively Moral Rights). To the extent I retain any such Moral Rights under applicable law, I hereby ratify and consent to any action that may be taken with respect to such Moral Rights by or authorized by Company and agree not to assert any Moral Rights with respect thereto. I will confirm any such ratifications, consents and agreements from time to time as requested by Company.
4. I agree that all Inventions and all other business, technical and financial information (including, without limitation, the identity of and information relating to customers or employees) I develop, learn or obtain during the term of my employment that relate to Company or the business or demonstrably anticipated business of Company or that are received by or for Company in confidence, constitute Proprietary Information. I will hold in confidence and not disclose or, except within the scope of my employment, use any Proprietary Information. However, I shall not be obligated under this paragraph with respect to information I can document is or becomes readily publicly available without restriction through no fault of mine. Upon termination of my employment, I will promptly return to Company all items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (i) my compensation records, (ii) materials distributed to shareholders generally and (iii) this Agreement. I also recognize and agree that I have no expectation of privacy with respect to Companys telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice.
5. Until one year after the term of my employment, I will not encourage or solicit any employee or consultant of Company to leave Company for any reason (except for the bona fide firing of Company personnel within the scope of my employment).
6. I agree that during the term of my employment with Company (whether or not during business hours), I will not engage in any activity that is in any way competitive with the business or demonstrably anticipated business of Company, and I will not assist any other person or organization in competing or in preparing to compete with any business or demonstrably anticipated business of Company.
7. I agree that this Agreement is not an employment contract for any particular term and that I have the right to resign and Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause. In addition, this Agreement does not purport to set forth all of the terms and conditions of my employment, and, as an employee of Company, I have obligations to Company which are not set forth in this Agreement. However, the terms of this Agreement govern over any inconsistent terms and can only be changed by a subsequent written agreement signed by the President of Company.
8. I agree that my obligations under paragraphs 2, 3, 4 and 5 of this Agreement shall continue in effect after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and that Company is entitled to communicate my obligations under this Agreement to any future employer or potential employer of mine. My obligations under paragraphs 2, 3 and 4 also shall be binding upon my heirs, executors, assigns, and administrators and shall inure to the benefit of Company, it subsidiaries, successors and assigns.
9. Any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California without regard to the conflict of laws provisions thereof. I further agree that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable California law, such illegal or unenforceable portion(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms. This Agreement is fully assignable and transferable by Company, but any purported assignment or transfer by me is void. I also understand that any breach of this Agreement will cause irreparable harm to Company for which damages would not be an adequate remedy, and, therefore, Company will be entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.
I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY ME.
|/s/ Ashar Aziz|
|/s/ Ashar Aziz|
|Accepted and Agreed to:|
|By:||/s/ Alexa King|
California Labor Code Section 2870. Application of provision providing that employee shall assign or offer to assign rights in invention to employer.
(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employers equipment, supplies, facilities, or trade secret information except for those inventions that either:
(1) Relate at the time of conception or reduction to practice of the invention to the employers business, or actual or demonstrably anticipated research or development of the employer; or
(2) Result from any work performed by the employee for his employer.
(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.