EXHIBIT 10.10
RESTATED AND AMENDED EMPLOYMENT AGREEMENT
THIS RESTATED AND AMENDED EMPLOYMENT AGREEMENT (this "Agreement"), dated
as of October 28, 2001 by and between Princeton Video Image, Inc., a Delaware
corporation (the "Company"), and Xxxxxxxx Xxxxxxx (the "Employee"), effective as
of February 2, 2001 (the "Effective Date").
WHEREAS, the Company and the Employee are parties to that certain
Employment Agreement, dated as of February 5, 1998, pursuant to which the
Employee was, and has continued to be, employed by the Company as its Vice
President, Finance, and Chief Financial Officer; and
WHEREAS, the Company and the Employee wish to amend the terms pursuant to
which the Employee shall continue to be employed by the Company as its Vice
President, Finance, and Chief Financial Officer, as set forth herein;
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto hereby agree as follows:
1. Term of Employment. Subject to the terms and conditions hereof, the
Company will employ the Employee, and the Employee will serve the Company, as
Vice President, Finance, and Chief Financial Officer, or such other executive
position or positions as the Company may request from time to time, for a period
beginning on February 2, 2001, the Effective Date, and terminating on the second
anniversary of such date (the "Initial Term"). Following the expiration of the
Initial Term and of each extension period referred to in this sentence, the term
of this Agreement automatically shall be extended for a period of one (1) year
thereafter (such term, as it may be shortened by termination of Employee's
employment hereunder pursuant to the provisions hereof or extended, the "Term of
Employment").
2. Duties. During the Term of Employment, the Employee will serve as Chief
Financial Officer, or such other executive position or positions as determined
by the Company, subject to the terms of this Agreement and the direction and
control of the Board of Directors of the Company, its Chairman and its Chief
Executive Officer ("CEO"). The primary location of the Employee's employment
hereunder shall be the headquarters of the Company in Lawrenceville, New Jersey.
In his position as Vice President, Finance, and Chief Financial Officer of the
Company, the Employee shall be responsible for overseeing and managing all
financial aspects of the Company, including negotiating licensing agreements,
finance, accounting, banking, treasury, SEC reporting, management information
systems and M&A. More particularly, in such positions, the Employee shall be
responsible for:
(a) Providing sound financial leadership to the Company and
functioning as a full member of the executive team developing and executing
business strategy;
(b) Working with the marketing and sales team to develop short and
long term revenue forecasts to form the basis for capital investments,
operations budgeting (including SG&A, product design, development and
manufacturing) and overall business forecasting;
(c) Overseeing all financial systems to ensure effective operations,
controls, MIS reporting, SEC reporting and business growth;
(d) Participating in negotiation of licensing arrangements with all
parties, working in conjunction with the Company's sales and marketing
organization and legal counsel, while ensuring the execution of comprehensive
due diligence and management of contracts, partnering arrangements and mergers
and acquisitions;
(e) Leading, managing, training and recruiting a high-caliber
finance team, as appropriate;
(f) Managing the cash-flow position of the Company, and improving
credit, collection and purchasing policies and payment schedules, as deemed
appropriate;
(g) Functioning as the liaison with the Company's outside auditors
on annual reports and audits; and
(h) Developing and maintaining effective Wall Street relationships.
The Employee will hold, in addition to the offices of Vice President,
Finance, and Chief Financial Officer of the Company, such other offices in the
Company to which he may be appointed or assigned from time to time by the Board
of Directors of the Company and will discharge such duties in connection
therewith. The Employee shall devote all of his business time to the performance
of his duties hereunder, provided, that the Employee shall not be precluded from
serving as a member of up to two boards of directors or advisory boards of
companies or organizations so long as such service does not violate the
provisions of Section 9 of this Agreement or interfere with the performance of
the Employee's duties hereunder.
3. Compensation. The Company will, during the Term of Employment, pay to
the Employee as compensation for the performance of his duties and obligations
hereunder a base salary at the rate of $180,000 per annum ("Salary"), payable in
equal semi-monthly installments. Such Salary shall be reviewed annually by the
Board of Directors of the Company in accordance with the Company's compensation
program solely for the purpose of determining increases. During the Term of
Employment, the Employee shall be eligible to receive a bonus, to be awarded at
the sole discretion of the Board of Directors of the Company, upon the
attainment of stated goals and objectives for the Employee to be set by the
Compensation Committee of the Board after consultation with the Employee.
4. Other Benefits. During the Term of Employment:
(a) The Employee shall be entitled to participate in employee benefit
plans and programs of the Company to the extent that his position, tenure,
salary, age, health and other qualifications make him eligible to participate.
Such benefits shall include participation in the Princeton Video Image 1993
Stock Option Plan, as amended. The Company does not guarantee the adoption or
continuance of any particular employee benefit plan or program during the Term
of Employment, and the Employee's participation in any such plan or program
shall be subject to
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the provisions, rules, regulations and laws applicable thereto; provided,
however, that the Employee shall be entitled to health and hospital insurance
benefits consistent with the past practices of the Company in effect with
respect to Company personnel generally.
(b) While employed hereunder, the Employee shall be entitled to
vacation benefits consistent with the past practices of the Company in effect
with respect to Company personnel generally, plus one additional week per year.
Such vacation may be taken by the Employee at such times as do not unreasonably
interfere with the business of the Company. The accumulation of annual vacation
time earned but not taken will be in accordance with the Company policy
guidelines. Additional vacation will be earned in accordance with Company
policy.
5. Expenses. During the Term of Employment, all travel and other
reasonable business expenses incident to the rendering of services by the
Employee under this Agreement will be paid or reimbursed by the Company subject
to the submission of appropriate vouchers and receipts in accordance with the
Company's policy from time to time in effect.
6. Death or Disability.
(a) The Employee's employment under this Agreement shall be
terminated by the death of the Employee. In addition, the Employee's employment
under this Agreement may be terminated by the Board of Directors of the Company
if the Employee shall be rendered incapable by illness or any other disability
from complying with the terms, conditions and provisions on his part to be kept,
observed and performed for a period in excess of 180 days (whether or not
consecutive) or 90 days consecutively, as the case may be, during a 12-month
period during the Term of Employment ("Disability"). If the Employee's
employment under this Agreement is terminated by reason of Disability of the
Employee, the Company shall give notice to that effect to the Employee in the
manner provided herein. In the event that the Employee receives disability
insurance benefits for which payment was made by the Company after the date of
this Agreement and prior to termination of the Employee's employment under this
Agreement pursuant to this Section 6(a), the Employee's Salary shall be reduced
by an amount equal to such disability insurance benefits during such period.
(b) In addition to and not in substitution for any other benefits
which may be payable by the Company in respect of the death of the Employee, in
the event of such death after the Employee's employment has begun, the Salary
payable hereunder shall continue to be paid at the then current rate for three
(3) months after the termination of employment, and any bonus to which the
Employee would have been entitled for the year in which his death occurs shall
be pro rated to the date of his death and paid not later than three (3) months
after the termination of employment. All sums payable pursuant to this Section
6(b) shall be paid to the Employee's personal representative.
(c) In addition to and not in substitution for any other benefits
which may be payable by the Company in respect of the Disability of the
Employee, in the event of the termination of the Employee's employment hereunder
due to such Disability pursuant to Section 6(a) after the Employee's employment
has begun, the Company shall pay the Employee, in twelve (12) equal semi-monthly
installments, an aggregate amount equal to six (6) months'
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Salary at the rate in effect on the effective date of such termination;
provided, however, that the Company shall deduct from such payments the amount
of any and all disability insurance benefits paid during such six-month period
with respect to the Employee that were paid for by the Company during any period
for which payment was made by the Company after the date of this Agreement and
prior to the termination of the Employee's employment. In addition, any bonus to
which the Employee would have been entitled for the year in which such
termination of employment occurs shall be pro rated to the date of such
termination and paid not later than twelve (12) months after such termination.
7. Disclosure of Information, Inventions and Discoveries. The Employee
shall promptly disclose to the Company all processes, trademarks, inventions,
improvements discoveries and other information related to the business of the
Company (collectively, "Developments") conceived, developed or acquired by him
alone or with others during the Term of Employment or during any earlier period
of employment by the Company or any predecessor of the Company, whether or not
during regular working hours or through the use of materials or facilities of
the Company. All such Developments shall be the sole and exclusive property of
the Company, and, upon request, the Employee shall promptly deliver to the
Company all drawings, sketches, models and other data and records relating to
such Developments. In the event any such Development shall be deemed by the
Company to be patentable, the Employee shall, at the expense of the Company,
assist the Company in obtaining a patent or patents thereon and execute all
documents and do all such other acts and things necessary or proper to obtain
letters patent and to invest in the Company full right, title and interest in
and to such Developments.
8. Non-Disclosure. The Employee shall not, at any time during or after the
Term of Employment or any earlier period of employment by the Company or any
predecessor of the Company, divulge, furnish or make accessible to anyone
(otherwise than in the regular course of business of the Company) or use for his
own account or for the account of any other person any knowledge or information
with respect to confidential or secret processes, inventions, discoveries,
improvements, formulae, plans, materials, devices or ideas or other know-how,
whether patentable or not, with respect to any confidential or secret
development or research work or with respect to any other confidential or secret
aspects of the Company's business (including, without limitation, customer
lists, supplier lists and pricing arrangements with customers or suppliers)
(collectively, the "Confidential Information"). This Section 8 shall not apply
to any information which (i) is or becomes generally available to the public
other than as a result of a disclosure directly or indirectly by the Employee,
or (ii) is or becomes available to the Employee on a non-confidential basis from
a person other than the Company or its officers, directors or agents who, to the
Employee's knowledge after due inquiry, is not and was not bound by a
confidentiality obligation to the Company and was not otherwise prohibited from
transmitting such information to the Employee.
9. Non-Competition. The Company and the Employee agree that the services
rendered by the Employee are unique and irreplaceable. In addition to and in
furtherance of Section 8 of this Agreement, the Company and the Employee agree
that the Employee has had, and will continue to have, unlimited access to the
Confidential Information and that preserving the proprietary nature of the
Confidential Information is of utmost importance to the Company. By giving the
Employee an opportunity or incentive to breach his obligations to the Company
under Section 8 of the Agreement, any relationship between the Employee and a
competitor of
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the Company during or following the Term of Employment will potentially cause
the Company irreparable injury, regardless (in the event of termination or
expiration of the Term of Employment) of the circumstances under which the Term
of Employment ends, and even if the Employee is terminated by the Company for
cause. Therefore, in light of the foregoing, the Employee agrees that during the
Term of Employment and for a period of two (2) years thereafter, the Employee
shall not, directly or indirectly, through any other person, firm, corporation
or other entity (whether as an officer, director, employee, partner, consultant,
holder of equity or debt investment, lender or in any other manner or capacity):
(a) in any geographical area in the United States or in those
foreign countries where the Company, during the Term of Employment, conducts or
has undertaken activities to begin to conduct its Business on the date of the
termination of Employee's employment under this Agreement for any reason (For
purposes of this provision the Company's "Business" means the design,
manufacture, sale, marketing, license and supply of video and television
technology applications for real time or post production insertion, either
upstream or downstream of distribution, of electronic images (including video)
into video streams that are delivered by telecast, the Internet, or any other
medium, and such other specific kinds of proprietary video and television
technology applications as the Company may develop or acquire during the Term of
Employment.);
(b) initiate conversations to solicit, induce, encourage or attempt
to induce or encourage any employee of the Company to terminate his or her
employment with the Company or to breach any other obligation to the Company;
(c) solicit, interfere with, disrupt, alter or attempt to disrupt or
alter the relationship, contractual or otherwise, between the Company and any
customer, potential customer, or supplier of the Company; or
(d) engage in or participate in any business conducted under any
name that shall be the same as or similar to the name of the Company or any
trade name used by it,
provided, however, that in the event the Employee's employment is terminated by
the Company for cause pursuant to Section 11 of this Agreement, then following
such termination Employee shall have no further obligations under this Section 9
unless the Company, in its sole discretion, elects to make additional payments
to Employee as provided under Section 12.
The Employee acknowledges that the foregoing geographic, activity and time
limitations contained in this Section 9 are reasonable and properly required for
the adequate protection of the Company's business. In the event that any such
geographic, activity or time limitation is deemed to be unreasonable by a court,
the Employee shall submit to the reduction of either said activity or time
limitation to such activity or period as the court shall deem reasonable. In the
event that the Employee is in violation of the restrictive covenants set forth
in this Section 9, then the time limitation for such covenants shall be extended
for a period of time equal to the pendency of any proceedings brought to enforce
such covenants, including any appeals.
10. Remedies.
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(a) The Employee acknowledges that irreparable injury would result
to the Company if the provisions of Section 7, 8, 9 or 14 of this Agreement were
not specifically enforced and agrees that the Company shall be entitled to any
appropriate legal, equitable or other remedy, including injunctive relief, in
respect to any failure to comply with the provisions of Section 7, 8, 9 or 14,
as determined by a court of competent jurisdiction.
(b) In furtherance of and not in limitation of Section 10(a), in the
event that, subsequent to the Term of Employment, the Employee breaches any of
his obligations to the Company under Section 7, 8, 9 or 14 of this Agreement,
then the Company's obligation to make further payments to the Employee pursuant
to this Agreement shall terminate. Any such termination shall not limit or
affect the Company's right to pursue any other remedy available to the Company
at law or in equity.
11. Termination for Cause. In addition to any other remedy available to
the Company, either at law or in equity, the Employee's employment with the
Company may be terminated by the Board of Directors for cause, which shall
include (i) the Employee's conviction from which no further appeal may be taken
for, or plea of nolo contendere to, a felony or a crime involving moral
turpitude, (ii) the Employee's commission of a breach of fiduciary duty
involving personal profit in connection with the Employee's employment by the
Company, (iii) the Employee's commission of an act which the Board of Directors
shall reasonably have found to have involved willful misconduct or gross
negligence on the part of the Employee, in the conduct of his duties under this
Agreement, (iv) habitual absenteeism, (v) the Employee's material breach of any
material provision of this Agreement which remains uncured for a period of
thirty (30) days following notice by the Company, or (vi) the willful and
continued failure by the Employee to perform substantially his duties with the
Company (other than any such failure resulting from his incapacity due to
physical or mental illness). With respect to the matters set forth in
subsections (iii), (iv), (v) and (vi) of this Section 11, the Company may not
terminate the Employee's employment unless the Employee has first been given
notice of the conduct forming the cause for such termination and an opportunity
to explain such conduct to the Company. In the event of termination under this
Section 11, the Company's obligations under this Agreement shall cease, and the
Employee shall forfeit all rights to receive any future compensation under this
Agreement. Notwithstanding any termination of this Agreement pursuant to this
Section 11, the Employee, in consideration of his employment hereunder to the
date of such termination, shall remain bound by the provisions of Section 7, 8,
9 and 14 hereof following any such termination.
12. Termination Without Cause, Severance.
(a) Each of the Company and the Employee may terminate the
Employee's employment under this Agreement at any time for any reason
whatsoever, without any further liability or obligation of the Company to the
Employee or of the Employee to the Company from and after the date of such
termination (other than liabilities or obligations accrued but unsatisfied on,
or surviving, the date of such termination), by sending ninety (90) days' prior
notice to the other party.
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(b) In the event the Company elects to terminate the Employee's
employment under this Agreement pursuant to this Section 12, the Company shall
continue to pay the Employee, in equal semi-monthly installments, the full
Salary (inclusive of paid medical plan, but exclusive of bonuses, if any) as
such Salary otherwise would have accrued for a period equal to six (6) months;
provided, however that if the Company elects to terminate this Agreement during
the Initial Term, such amount shall be the Salary which otherwise would have
accrued for a period equal to the greater of (i) one (1) year following the
effective date of the termination of the Employee's employment or (ii) the
balance of the Initial Term.
(c) Prior to any termination for "Good Cause" (as hereinafter
defined) by Employee of his employment hereunder, Employee shall provide a
notice to the Company of any Good Cause for the Employee's termination of
employment and shall provide the Company with a reasonable opportunity of not
less than fifteen (15) business days to cure the reason(s) for the notice, if
such reason consists of a claim of material breach of this Agreement. If the
Company does not cure the reason for the notice within the period provided and
Employee terminates his employment for Good Cause, the Company shall continue to
pay the Employee, in equal semi-monthly installments, the full Salary (inclusive
of paid medical plan, but exclusive of bonuses, if any) as such Salary otherwise
would have accrued for a period equal to six (6) months; provided, however that
if the Company does not cure the reason for the notice within the period
provided and Employee terminates his employment for Good Cause during the
Initial Term, such amount shall be the Salary which otherwise would have accrued
for a period equal to the greater of (i) one (1) year following the termination
of the Employee's employment or (ii) the balance of the Initial Term. In the
event the Employee elects to terminate the Employee's employment under this
Agreement, other than as set forth in the immediately preceding sentences, prior
to the end of the Term of Employment, the Company's obligation to pay Salary
shall cease as of the effective date of termination.
(d) Any termination of the Employee's employment under this
Agreement by the Company as provided in this Section 12 shall be in addition to,
and not in substitution for, any rights with respect to termination of the
Employee which the Company may have pursuant to Section 11. Notwithstanding any
termination of the Employee's employment under this Agreement pursuant to this
Section 12, the Employee, in consideration of his employment hereunder to the
date of such termination, shall remain bound by the provisions of Section 7, 8,
9 and 14 hereof following any such termination.
(e) For purposes of this Section 12, "Good Cause" shall mean a
Detrimental Change as defined in Section 12(f) below or the Company shall have
materially breached its obligations under this Agreement and such breach shall
not have been cured at the time the Employee terminates his employment.
(f) As used in this Agreement, "Detrimental Change" shall mean a
detrimental change in the nature or scope of the Employee's employment or duties
which is substantially inconsistent with those of an executive officer of the
Company. Detrimental Change shall include, without limitation, the assignment of
the Employee to any duties substantially inconsistent with those of an executive
officer of the Company, the removal of the Employee from, or any failure to
re-elect him as an officer of the Company, the assignment of the Employee to be
under the direct supervision of anyone reporting to the Chairman or CEO of the
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Company (unless the Employee is given written notice of the assignment at least
three (3) months and no more than six (6) months prior to the effective date of
the assignment and such notice includes a reasonably complete description of the
job duties and reporting contemplated by the assignment), a reduction in Salary
or other employee benefits, the failure by the Company to continue to provide
the Employee with substantially similar bonus opportunities, the relocation of
the Employee's primary office of employment to a location more than fifty (50)
miles from the location of such office prior to the relocation, and
substantially increased travel requirements. If the Employee fails to notify the
Company within thirty (30) days of the relocation that he will terminate his
employment with the Company due to the relocation, then such failure to notify
shall constitute a waiver and such relocation shall not be deemed a Detrimental
Change.
13. Resignation. In the event that the Employee's services under this
Agreement are terminated under any of the provisions of this Agreement (except
by death), the Employee agrees that he will deliver to the Board of Directors
his written resignation from all positions held with the Company, such
resignation to become effective immediately; provided, however, that nothing
herein shall be deemed to affect the provisions of Section 7, 8, 9 and 14 hereof
relating to the survival thereof following termination of the Employee's
services hereunder; and provided, further, that except as expressly provided in
this Agreement, the Employee shall be entitled to no further compensation
hereunder.
14. Data. Upon expiration or termination of the Term of Employment or
termination pursuant to Section 1, 6, 11 or 12 hereof, the Employee or his
personal representative shall promptly deliver to the Company all books,
memoranda plans, records and written data of every kind relating to the business
and affairs of the Company which are then in his possession or control.
15. Insurance. The Company shall have the right, at its own cost and
expense to apply for and to secure in its own name, or otherwise, life, health
or accident insurance or any or all of them covering the Employee, and the
Employee agrees to submit to usual and customary medical examinations and
otherwise to cooperate with the Company in connection with the procurement of
any such insurance and any claims thereunder.
16. Waiver of Breach. Any waiver of any breach of this Agreement shall not
be construed to be a continuing waiver or consent to any subsequent breach on
the part either of the Employee or the Company.
17. Assignment. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of the Company upon any sale of all or
substantially all of the Company's assets, or upon any merger or consolidation
of the Company with or into any other entity (including, without limitation, any
change in control of the Company), all as though such successors and assigns of
the Company and their respective successors and assigns were the Company.
Insofar as the Employee is concerned, this Agreement, being personal, may not be
assigned, and any such purported assignment shall be void and of no effect.
18. Severability. To the extent any provision of this Agreement shall be
invalid or unenforceable, it shall be considered deleted herefrom, and the
remainder of such provision and
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of this Agreement shall be unaffected and shall continue in full force and
effect. In furtherance and not in limitation of the foregoing, should the
duration or geographical extent of, or business activities covered by, any
provision of this Agreement be in excess of that which is valid and enforceable
under applicable law, then such provision shall be construed to cover only that
duration, extent or activities which may be validly and enforceably covered.
19. Notices. All notices, requests and other communications pursuant to
this Agreement shall be in writing and shall be deemed to have been duly given,
if delivered in person or by courier, telegraphed, telexed or by facsimile
transmission (receipt confirmed) or five (5) business days after being sent by
registered or certified mail, return receipt requested, postage paid, addressed
as follows:
(a) If to the Employee:
Xxxxxxxx X. Xxxxxxx
00 Xxxxxxx Xxxx
Xxxxxxxxx Xxxxxxxx, XX 00000
Fax No.: 000-000-0000
(b) If to the Company:
Princeton Video Image, Inc.
00 Xxxxxxxx Xxxx
Xxxxxxxxxxxxx, XX 00000
Fax No.: (000) 000-0000
Attn: Chairman of the Board of Directors
with a copy to:
Xxxxxxx X. Xxxxx, Esq.
Smith, Stratton, Wise, Xxxxx & Xxxxxxx
000 Xxxxxxx Xxxx Xxxx
Xxxxxxxxx, XX 00000
Fax No.: (000) 000-0000
Any party may, by written notice to the other in accordance with this Section
19, change the address to which notices to such party are to be delivered or
mailed.
20. General. Except as otherwise provided herein, the terms and provisions
of this Agreement shall constitute the entire agreement by the Company and the
Employee with respect to the subject matter hereof and shall supersede any and
all prior agreements or understandings between the Employee and the Company,
whether written or oral. This Agreement shall be construed and enforced in
accordance with the laws of the State of New Jersey. This Agreement may be
amended or modified only by a written instrument executed by the Employee and
the Company. The headings of the sections of this Agreement are for convenience
of reference only and do not constitute part of this Agreement. This Agreement
may be executed in any number of
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counterparts, each of which, when executed, shall be deemed to be an original,
but all of which together shall constitute one and the same instrument.
* * * * *
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IN WITNESS WHEREOF, each of the parties have executed or caused to be
executed by its duly authorized representative this Employment Agreement as of
the day and year first above written.
PRINCETON VIDEO IMAGE, INC.
By: /s/ Xxxx X. Xxxxxxxxx
----------------------------------------
Name: Xxxx X. Xxxxxxxxx
Title: Chairman of the Compensation
Committee
Employee:
/s/ Xxxxxxxx Xxxxxxx
-------------------------------------------
Xxxxxxxx Xxxxxxx
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