Exhibit 10.9
EXECUTIVE EMPLOYMENT AGREEMENT
THIS AGREEMENT (the "AGREEMENT") is made and entered into this 18th day of
May, 2004 (the "EFFECTIVE DATE"), by and between GSE LINING TECHNOLOGY, LTD., a
corporation formed under the laws of the United Kingdom, having its corporate
headquarters located at 00 Xxxxx Xxxxx, Xxxxx, Xxxxxxxxxxxxxx, Xxxxxxx XX0 0XX
(hereinafter referred to as the "COMPANY"), and XXXX XXXXXXX XXXXXXX
(hereinafter referred to as the "EMPLOYEE").
W I T N E S S E T H:
WHEREAS, the Company desires to employ the Employee in an executive
capacity and the Employee desires to remain in the Company's employ.
NOW, THEREFORE, for and in consideration of the mutual promises, covenants
and obligations contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the
Employee hereby agree as follows:
1. CERTAIN DEFINITIONS. As used in this Agreement, the following terms have
the meanings prescribed below:
AFFILIATE is used in this Agreement to define a relationship to a person or
entity and means a person or entity who, directly or indirectly through one or
more intermediaries, controls, is controlled by, or is under common control
with, such person or entity.
BASE SALARY shall have the meaning assigned thereto in SECTION 4(a) hereof.
BOARD shall mean the board of directors of Gundle/SLT Environmental, Inc.
BONUS shall have the meaning assigned thereto in SECTION 4(b) hereof.
CAUSE shall have the meaning assigned thereto in SECTION 5(c) hereof.
COMMON STOCK means the Company's common stock, par value $.01 per share.
COMPANY means GSE Lining Technology, Ltd., a corporation formed under the
laws of the United Kingdom, with its corporate headquarters located at 00 Xxxxx
Xxxxx, Xxxxx, Xxxxxxxxxxxxxx, Xxxxxxx XX0 0XX.
COMPETITIVE BUSINESS shall have the meaning assigned thereto in SECTION
10(b) hereof.
CONFIDENTIAL INFORMATION shall have the meaning assigned thereto in SECTION
8(b) hereof.
DATE OF TERMINATION means the earliest to occur of (i) the date of the
Employee's death, (ii) the last day of the Employment Period, or (iii) the date
of receipt of the Notice of Termination, or such later date as may be prescribed
in the Notice of Termination in accordance with SECTION 5(g) hereof.
DISABILITY means an illness or other disability which prevents the Employee
from discharging his responsibilities under this Agreement for a period of 180
consecutive calendar days or an aggregate of 180 calendar days in any calendar
year, during an Employment Period, all as determined in good faith by the Parent
Board (or a committee thereof).
EFFECTIVE DATE has the meaning set forth in the introduction of this
Agreement.
EMPLOYEE means Xxxx Xxxxxxx Xxxxxxx, an individual residing at 00 Xxxxx
Xxxxx, Xxxxx, Xxxxxxxxxxxxxx, Xxxxxxx XX0 0XX.
EMPLOYMENT PERIOD shall have the meaning assigned thereto in SECTION 3
hereof.
MARKET shall have the meaning assigned thereto in SECTION 10(c) hereof.
NOTICE OF TERMINATION shall have the meaning assigned thereto in SECTION
5(g) hereof.
PARENT shall mean GEO Holdings Corp., a Delaware corporation, which
indirectly owns all of the outstanding capital stock of the Company.
PARENT BOARD shall mean the board of directors of the Parent.
RESTRICTED PERIOD shall have the meaning assigned thereto in SECTION 10(d)
hereof.
WITHOUT CAUSE shall have the meaning assigned thereto in SECTION 5(d)
hereof.
WORK PRODUCT shall have the meaning assigned thereto in SECTION 9 hereof.
2. GENERAL DUTIES OF COMPANY AND EMPLOYEE.
(a) The Company agrees to employ the Employee, and the Employee agrees to
accept employment by the Company to serve as the Managing Director of
the Company. The authority, duties and responsibilities of the
Employee shall include those consistent with such positions in
business entities of similar size in the Company's industry and such
other or additional duties as may from time to time be assigned to the
Employee by the Parent Board (or a committee thereof) consistent with
such titles and positions. While employed hereunder, the Employee
shall devote reasonable time and attention during normal business
hours to the affairs of the Company and use his best efforts to
perform faithfully and efficiently his duties and responsibilities.
(b) The Employee agrees and acknowledges that he owes a fiduciary duty of
loyalty, fidelity and allegiance to act at all times in the best
interests of the Company.
(c) The Employee agrees to comply at all times during the Employment
Period with all applicable policies, rules and regulations of the
Company, including, without limitation, the Company's Code of Ethics
and the Company's policy regarding trading in the Company's Common
Stock or an Affiliate's common stock, as each is in effect from time
to time during the Employment Period.
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3. TERM. Unless sooner terminated pursuant to other provisions hereof, the
Employee's period of employment under this Agreement shall be a period of
three years beginning on the Effective Date (the "EMPLOYMENT PERIOD"). This
Agreement and the Employment Period shall automatically be extended for
successive twelve (12) month terms unless either the Company or the
Employee provides a written notice of its/his intent to not extend the
Employment Period not less than 90 calendar days prior to the expiration of
the then current Employment Period ("AUTOMATIC EXTENSION"). Notwithstanding
the foregoing, the Employee's employment shall cease and shall not extend
past the last day of the month in which the Employee attains age 70.
4. COMPENSATION AND BENEFITS.
(a) BASE SALARY. As compensation for services to the Company, the Company
shall pay to the Employee until the Date of Termination an annual base
salary of L 135,000 (the "BASE SALARY"). The Parent Board (or a
committee thereof) shall review the Employee's Base Salary no less
than annually and, in its discretion, may increase, but not decrease,
the Base Salary based upon relevant circumstances. If the Employee's
Base Salary is increased at any time, it may not thereafter be
decreased below such amount. The Base Salary shall be payable in equal
semi-monthly installments or in accordance with the Company's
established policy, subject only to such payroll and withholding
deductions as may be required by law and other deductions applied
generally to employees of the Company for insurance and other employee
benefit plans.
(b) BONUS. In addition to the Base Salary, the Employee shall be awarded,
for each fiscal year until the Date of Termination, an annual bonus
(pursuant to a bonus or incentive plan maintained by the Company as of
the Effective Date) in an amount to be determined by the Board (or a
committee thereof) based upon a bonus program established for
executives generally as of the Effective Date, taking into account the
Employee's Base Salary and position (the "BONUS"); PROVIDED, that the
Company may alter or substitute for, any such bonus plan generally for
all employees or executives (as applicable), in its sole discretion,
as long as such alteration or substitution results in substantially
the same or greater opportunity for Employee to earn a Bonus.
(c) STOCK OPTIONS. The Employee shall be entitled to receive grants of
stock options when awarded to executives generally, in amounts and on
terms commensurate with his position, as determined from time to time
by the Parent Board acting in good faith subject to the terms of the
applicable stock option plan and agreement.
(d) VACATION. In addition to the normal bank and public holidays, the
Employee shall be entitled to a basic holiday entitlement with pay in
each calendar year of up to twenty-five working days.
(e) INCENTIVE SAVINGS AND RETIREMENT PLANS. Until the Date of Termination,
the Company shall in each year pay contributions equivalent to ten
percent (10%) of the base salary of the Employee from time to time to
a pension fund nominated by
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the Employee, and at such intervals and in such installments as the
Employee shall specify.
(f) WELFARE BENEFIT PLANS. Until the Date of Termination, the Employee
and/or the Employee's family, as the case may be, shall be eligible to
participate in and shall receive all benefits under each welfare
benefit plan of the Company maintained as of the Effective Date or
hereinafter established by the Company for the benefit of its
employees subject to the terms and conditions contained in the
governing documents of such plans. Such welfare benefit plans may
include, without limitation, medical, dental, disability, group life,
accidental death and travel accident insurance plans and programs;
PROVIDED, that, with respect to medical benefits, the Company shall on
behalf of the Employee and his spouse (and children under the age of
21) pay the cost of membership to private medical insurance subscribed
to from time to time by the Employee, subject to the availability of
such insurance on terms satisfactory to the Company.
(g) LIFE INSURANCE. The Company shall provide on behalf of the Employee
and during the term of this Agreement life insurance that will
produce, upon the death of the Employee, a death benefit of at least L
540,000.
(h) REIMBURSEMENT OF EXPENSES. The Employee may from time to time until
the Date of Termination incur various business expenses customarily
incurred by persons holding positions of like responsibility,
including, without limitation, travel, entertainment and similar
expenses incurred for the benefit of the Company. Subject to the
Company's policy regarding the reimbursement of such expenses as in
effect from time to time during the Employment Period, which does not
necessarily allow reimbursement of all such expenses, the Company
shall reimburse the Employee for such expenses from time to time, at
the Employee's request, and the Employee shall account to the Company
for all such expenses. Without limiting the foregoing, the Employee
shall, in addition to all other compensation and benefits to which the
Employee shall be entitled hereunder, an automobile allowance in the
amount of L 1071.20 per month, payable in arrears and a reimbursement
for business mileage at the appropriate rate per mile.
5. TERMINATION.
(a) DEATH. This Agreement shall terminate automatically upon the death of
the Employee.
(b) DISABILITY. The Company may terminate this Agreement, upon written
notice to the Employee delivered in accordance with SECTIONS 5(g) and
12(c) hereof, upon the Disability of the Employee.
(c) CAUSE. The Company may terminate this Agreement, upon written notice
to the Employee delivered in accordance with SECTIONS 5(g) and 12(c)
hereof, for Cause. For purposes of this Agreement, "CAUSE" means (i)
the commission by the
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Employee (as determined in good faith by the Parent Board or a
committee thereof) of a crime or criminal offense involving theft,
fraud, embezzlement or other felony or otherwise involving dishonesty,
in each case with respect to the Company, (ii) the Employee's willful
refusal, without proper legal cause, to perform his duties and
responsibilities as contemplated in this Agreement or (iii) the
Employee's engaging (A) in activities which would constitute a
material breach of a material term of this Agreement, the Company's
Code of Ethics, the Company's policies and regulations, including but
not limited to, policies regarding trading in the Common Stock or
reimbursement of business expenses or any other applicable policies,
rules or regulations of the Company, or (B) in improper conduct which
would result in a material injury to the business, condition
(financial or otherwise), results of operations or prospects of the
Company or its Affiliates (as determined in good faith by the Parent
Board or a committee thereof), (iv) willful misconduct by Employee
injurious to the Company, or (v) conduct by Employee tending to bring
the Company into substantial public disgrace or disrepute; PROVIDED,
HOWEVER, that no termination pursuant to clause (ii) hereof shall
become effective unless Employee shall have failed to cure such Cause
to the satisfaction of the Parent Board in their sole discretion
within thirty (30) days after receiving a Notice of Termination
detailing the alleged Cause.
(d) WITHOUT CAUSE. The Company may terminate this Agreement Without Cause,
upon written notice to the Employee delivered in accordance with
SECTIONS 5(g) and 12(c) hereof. For purposes of this Agreement, the
Employee will be deemed to have been terminated "WITHOUT CAUSE" if the
Employee is terminated by the Company for any reason, including
non-renewal of this Agreement pursuant to SECTION 3, but excluding
termination for Cause, Disability or death.
(e) GOOD REASON. The Employee may terminate his employment hereunder for
Good Reason, upon written notice to the Company delivered in
accordance with SECTIONS 5(g) and 12(c) hereof. For purposes of this
Agreement, "GOOD REASON" shall mean (i) a material diminution of the
Employee's title, authority, status or responsibilities; (ii) a
material breach by the Company of this Agreement; (iii) the Company
requires Employee to locate his office to a location outside a thirty
mile radius of Cambridgeshire, England, without the consent of
Employee, which consent will not be unreasonably withheld; or (iv)
Employee dies or becomes permanently disabled; PROVIDED, however, that
the Company shall have the opportunity to cure the reasons contained
in clauses (i), (ii) or (iii) for thirty (30) days following receipt
by the Company of a Notice of Termination from Employee detailing the
alleged Good Reason.
(f) VOLUNTARY TERMINATION. The Employee may voluntarily terminate this
Agreement, upon written notice to the Company delivered in accordance
with SECTIONS 5(g) and 12(c) hereof.
(g) NOTICE OF TERMINATION. Any termination of this Agreement by the
Company for Cause, Without Cause or as a result of the Employee's
Disability, the Employee's
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Termination for Good Reason, or Voluntary Termination by the Employee,
shall be communicated by Notice of Termination to the other party
hereto given in accordance with this Agreement. For purposes of this
Agreement, a "NOTICE OF TERMINATION" means a written notice which (i)
indicates the specific termination provision in this Agreement relied
upon, (ii) sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's
employment under the provision so indicated and (iii) specifies the
termination date, if such date is other than the date of receipt of
such notice (which termination date shall not be more than 30 days
after the giving of such notice).
6. OBLIGATIONS OF COMPANY UPON TERMINATION.
(a) CAUSE OR VOLUNTARY TERMINATION BY EMPLOYEE. If this Agreement shall be
terminated either by the Company for Cause or Voluntary Termination by
Employee, the Company shall pay to the Employee:
(i) payment in accordance with regular payroll procedures of
Employee's Base Salary (as in effect on the Date of
Termination) due through the Date of Termination; and
(ii) all benefits under the Company's benefit plans and programs in
which Employee participates, subject to the terms and
conditions of such plans. Employee's participation in all
Company benefit plans and programs shall cease as of the Date
of Termination subject to the terms and conditions of the
governing plan documents of such plans.
(b) WITHOUT CAUSE, DISABILITY OR FOR GOOD REASON. If this Agreement shall
be terminated by the Company Without Cause, or due to Employee's
Disability, or by the Employee for Good Reason, the Company shall pay
to the Employee, (i) payment in accordance with regular payroll
procedures of Employee's Base Salary (as in effect on the Date of
Termination) due through the Date of Termination; (ii) all benefits
under the Company's benefit plans and programs in which Employee
participates, subject to the terms and conditions of such plans;
PROVIDED, HOWEVER, that medical benefits for Employee and dependents
of Employee on the Date of Termination shall be continued for a period
of 18 months, with premiums to be paid by Employee at the same rate in
effect on the Date of Termination and (iii) an amount, payable pro
rata over a period of 18 months, equal to the sum of (A) one and
one-half times the Base Salary as in effect on the Date of Termination
and (B) one and one-half times the average of the Bonuses paid to
Employee for the immediately preceding three years. All amounts shall
be paid in accordance with the Company's normal payroll practices and
subject to applicable federal, state and local taxes.
(c) The parties hereby agree that, subject to the relevant law, the
Company shall be required to make the payments provided for in this
SECTION 6, if and only if Employee has executed and delivered to the
Company the General Release
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substantially in form and substance as set forth in EXHIBIT A attached
hereto and the General Release has become effective, and only so long
as Employee has not revoked or breached the provisions of the General
Release or breached the provisions of SECTIONS 8, 9 and 10 hereof and
does not apply for unemployment compensation chargeable to the Company
or any Affiliate during the period in which Employee is receiving
payments pursuant to this SECTION 6. The parties agree that,
notwithstanding any other statutory provision or law, it is their
intention that a termination of the Agreement shall be governed by the
terms of the General Release in accordance with this Agreement.
7. EMPLOYEE'S OBLIGATION TO AVOID CONFLICTS OF INTEREST.
(a) In keeping with the Employee's fiduciary duties to the Company and in
addition to the Company's policies and procedures regarding conflicts
of interest, the Employee agrees that he shall not knowingly during
the term of his employment hereunder become involved in a conflict of
interest with the Company, or upon discovery thereof, allow such a
conflict to continue. The Employee further agrees to disclose to the
Company, promptly after discovery, any facts or circumstances which
might involve a conflict of interest with the Company.
(b) The Company and the Employee recognize that it is impossible to
provide an exhaustive list of actions or interests which constitute a
"conflict of interest." Moreover, the Company and the Employee
recognize that there are many borderline situations. In some
instances, full disclosure of facts by the Employee to the Company is
all that is necessary to enable the Company to protect its interests.
In others, if no improper motivation appears to exist and the
Company's interests have not suffered, prompt elimination of the
outside interest will suffice. In still others, it may be necessary
for the Company to terminate the employment relationship.
(c) In this connection, it is agreed that any direct or indirect interest
in, connection with or benefit from any outside activities,
particularly commercial activities, which interest might in any way
adversely affect the Company or its Affiliates, involves a possible
conflict of interest. Circumstances in which a conflict of interest on
the part of the Employee would or might arise, and which should be
reported immediately to the Company, include, but are not limited to,
the following:
(i) Ownership of a material interest in any lender, supplier,
contractor, subcontractor, customer or other entity with which
the Company does business;
(ii) Acting in any capacity, including director, officer, partner,
consultant, employee, distributor, agent or the like, for any
lender, supplier, contractor, subcontractor, customer or other
entity with which the Company does business;
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(iii) Acceptance, directly or indirectly, of payments, services or
loans from a lender, supplier, contractor, subcontractor,
customer or other entity with which the Company does business,
including, without limitation, gifts, trips, entertainment or
other favors of more than a nominal value, but excluding loans
from publicly held insurance companies and commercial or
savings banks at market rates of interest;
(iv) Improper use of information or facilities to which the Employee
has access in a manner which will be detrimental to the
Company's interests, such as use for the Employee's own benefit
of know-how or information developed through the Company's
business activities;
(v) Improper disclosure or other misuse of information of any kind
obtained through the Employee's connection with the Company;
and
(vi) Acquiring or trading in, directly or indirectly, other
properties or interests connected with the design or marketing
of products or services designed or marketed by the Company.
8. EMPLOYEE'S CONFIDENTIALITY OBLIGATION.
(a) Employee acknowledges that his employment hereunder gives him access
to Confidential Information relating to the business of the Company,
its Affiliates and their customers that must remain confidential.
Employee acknowledges that this information is valuable, special, and
a unique asset of the business of the Company and its Affiliates, and
that it has been and will be developed by the Company and its
Affiliates at considerable effort and expense, and if it were to be
known and used by others engaged in a Competitive Business, it would
be harmful and detrimental to the interests of the Company and its
Affiliates. In consideration of the foregoing, Employee hereby agrees
and covenants that, during and after the Employment Period, Employee
will not, directly or indirectly in one or a series of transactions,
disclose to any person, or use or otherwise exploit for Employee's own
benefit or for the benefit of anyone other than the Company or its
Affiliates, Confidential Information (as defined in SECTION 8(b))
whether prepared by Employee or not; PROVIDED, HOWEVER, that any
Confidential Information may be disclosed (i) to officers,
representatives, employees and agents of the Company and its
Affiliates who need to know such Confidential Information in order to
perform the services or conduct the operations required or expected of
them in the business of the Company or its Affiliates, or (ii)
otherwise in connection with Employee's performance of his duties
hereunder on behalf of the Company. Employee shall not remove any
Confidential Information from the premises of the Company and its
Affiliates, except as required in his normal course of employment by
the Company. Employee shall instruct all persons or entities to whom
any Confidential Information shall be disclosed by him hereunder to
observe the terms and conditions set forth herein as though each such
person or entity was bound hereby. Employee shall have no obligation
hereunder to keep confidential any Confidential Information if and to
the extent
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disclosure of any such Confidential Information is specifically
required by law; PROVIDED, HOWEVER, that in the event disclosure is
required by applicable law, Employee shall provide the Company with
prompt notice of such requirement, if practicable, prior to making any
disclosure, so that the Company may seek an appropriate protective
order. At the request of the Company, Employee agrees to deliver to
the Company, at any time during the Employment Period, or thereafter,
all Confidential Information which he may possess or control. Employee
agrees that all Confidential Information of the Company (whether now
or hereafter existing) conceived, discovered or made by him during the
Employment Period exclusively belongs to the Company (and not to
Employee). Employee will promptly disclose such Confidential
Information to the Company and perform all actions reasonably
requested by the Company to establish and confirm such exclusive
ownership.
(i) In the event that Employee breaches his obligations in any
material respect under this SECTION 8, the Company, in addition
to pursuing all available remedies under this Agreement, at law
or otherwise, including but not limited to, an injunction, and
without limiting its right to pursue the same, shall cease all
payments and benefits to Employee under SECTION 6 of this
Agreement (provided that the Restricted Period shall continue
as if the payment continued for the period originally provided
for).
(ii) The terms of this SECTION 8 shall survive the termination of
this Agreement regardless of who terminates this Agreement, or
the reasons therefor.
(b) "CONFIDENTIAL INFORMATION" means information, which is used in the
business of the Company or its Affiliates and (i) is proprietary to,
about or created by the Company or its Affiliates, (ii) gives the
Company or its Affiliates some competitive business advantage or the
opportunity of obtaining such advantage or the disclosure of which
could be detrimental to the interests of the Company or its
Affiliates, (iii) is designated as Confidential Information by the
Company or its Affiliates, is known by the Employee to be considered
confidential by the Company or its Affiliates, or from all the
relevant circumstances should reasonably be assumed by the Employee to
be confidential and proprietary to the Company or its Affiliates, or
(iv) is not generally known by non-Company personnel; PROVIDED, that
to the extent that the information described in clauses (i) through
(iv) above becomes generally known to and available for use by the
public other than as a result of Employee's acts or omissions, such
information will not be deemed to be Confidential Information. Such
Confidential Information includes, without limitation, the following
types of information and other information of a similar nature
(whether or not reduced to writing or designated as confidential):
(i) Internal personnel and financial information of the Company or
its Affiliates, vendor information (including vendor
characteristics, services, prices, lists and agreements),
purchasing and internal cost information,
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internal service and operational manuals, and the manner and
methods of conducting the business of the Company or its
Affiliates;
(ii) Marketing and development plans, price and cost data, price and
fee amounts, pricing and billing policies, quoting procedures,
marketing and sales techniques, forecasts and forecast
assumptions and volumes, and future plans and potential
strategies (including, without limitation, all information
relating to any acquisition prospect and the identity of any
key contact within the organization of any acquisition
prospect) of the Company or its Affiliates which have been or
are being discussed;
(iii) Names of customers and their representatives, contracts
(including their contents and parties), customer services, and
the type, quantity, specifications and content of products and
services purchased, leased, licensed or received by customers
of the Company or its Affiliates;
(iv) Confidential and proprietary information provided to the
Company or its Affiliates by any actual or potential customer,
government agency or other third party (including businesses,
consultants and other entities and individuals);
(v) Any trade secret, confidential study, data, calculations,
software storage media or other compilation of information,
patent, patent application, copyright, trademark, trade-name,
service xxxx, service name, "know-how" and trade secrets; and
(vi) Business acquisition plans or any portion or phase of any
scientific or technical information, ideas, discoveries,
designs, computer programs (including source of object codes),
processes, procedures, research or technical data, improvements
or other proprietary or intellectual property of the Company or
its Affiliates, whether or not in written or tangible form, and
whether or not registered, and including all files, records,
manuals, books, catalogues, memoranda, notes, summaries, plans,
reports, records, documents and other evidence thereof.
(c) As a consequence of the Employee's acquisition or anticipated
acquisition of Confidential Information, the Employee shall occupy a
position of trust and confidence with respect to the affairs and
business of the Company and its Affiliates. In view of the foregoing
and of the consideration to be provided to the Employee, the Employee
agrees that it is reasonable and necessary that the Employee make each
of the following covenants:
(i) At any time during the Employment Period and thereafter, the
Employee shall not disclose Confidential Information to any
person or entity, either inside or outside of the Company and
its Affiliates, other than as necessary in carrying out his
duties and responsibilities as set forth in SECTION 2 hereof,
without first obtaining the Company's prior written consent
(unless
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such disclosure is compelled pursuant to court orders or
subpoena, and at which time the Employee shall give notice of
such proceedings to the Company).
(ii) At any time during the Employment Period and thereafter, the
Employee shall not use, copy or transfer Confidential
Information other than as necessary in carrying out his duties
and responsibilities as set forth in SECTION 2 hereof, without
first obtaining the Company's prior written consent.
(iii) On the Date of Termination, the Employee shall promptly deliver
to the Company (or its designee) all written materials, records
and documents made by the Employee or which came into his
possession prior to or during the Employment Period concerning
the business or affairs of the Company or its Affiliates,
including, without limitation, all materials containing
Confidential Information.
9. INTELLECTUAL PROPERTY, INVENTIONS AND PATENTS. Without prejudice to the
Employee's rights under Sections 39 to 43 (inclusive) of the U.K. Patents
Act of 1977 or any statutory reenactment or modification thereof, Employee
acknowledges that all discoveries, concepts, ideas, inventions,
innovations, improvements, developments, methods, designs, analyses,
drawings, reports, patent applications, copyrightable work and mask work
(whether or not including any confidential information) and all
registrations or applications related thereto, all other proprietary
information and all similar or related information (whether or not
patentable) which relate to the Company's or any of its Affiliates' actual
or anticipated business, research and development or existing or future
products or services and which are conceived, developed or made by Employee
(whether alone or jointly with others) while employed by the Company or its
predecessor and its Affiliates, whether before or after the date of this
Agreement ("WORK PRODUCT"), belong to the Company or such Affiliate.
Employee shall promptly disclose such Work Product to the Parent Board and,
at the Company's expense, perform all actions reasonably requested by the
Parent Board (whether during or after the Employment Period) to establish
and confirm such ownership (including, without limitation, assignments,
consents, powers of attorney and other instruments). The terms of this
SECTION 9 shall survive termination of this Agreement regardless of who
terminates this Agreement, or the reasons therefor.
10. EMPLOYEE'S NON-COMPETITION OBLIGATION.
(a) Employee acknowledges that the services to be provided by him under
this Agreement give him the opportunity to have special knowledge of
the Company and its Confidential Information and the capabilities of
individuals employed by or affiliated with the Company, and that
interference in these relationships would cause irreparable injury to
the Company. In consideration of this Agreement, including, but not
limited to, the amounts payable by the Company upon termination of
Employee Without Cause, Employee covenants and agrees that:
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(i) During the Restricted Period, Employee will not, without the
express written approval of the Parent Board, anywhere in the
Market, directly or, indirectly, in one or a series of
transactions, own, manage, operate, control, invest or acquire
an interest in, or otherwise engage or participate in, whether
as a proprietor, partner, stockholder, lender, director,
officer, employee, joint venturer, investor, lessor, supplier,
customer, agent, representative or other participant, in any
Competitive Business without regard to (A) whether the
Competitive Business has its office, manufacturing or other
business facilities within or without the Market, (B) whether
any of the activities of Employee referred to above occur or
are performed within or without the Market or (C) whether
Employee resides, or reports to an office, within or without
the Market; PROVIDED, HOWEVER, that (x) Employee may, anywhere
in the Market, directly or indirectly, in one or a series of
transactions, own, invest or acquire an interest in up to five
percent (5%) of the capital stock of a Competitive Business
whose capital stock is traded publicly, so long as Employee has
no active participation in the business of such entity or (y)
Employee may accept employment with a successor company to the
Company.
(ii) During the Restricted Period, Employee will not without the
express prior written approval of the Parent Board (A) directly
or indirectly, in one or a series of transactions, recruit,
solicit or otherwise induce or influence any proprietor,
partner, stockholder, lender, director, officer, employee,
sales agent, joint venturer, investor, lessor, supplier,
customer, agent, representative or any other person which has a
business relationship with any of the Company or had a business
relationship with the Company within the twelve (12) month
period preceding the date of the incident in question, to
discontinue, reduce or modify such employment, agency or
business relationship with the Company, or (B) employ or seek
to employ or cause any Competitive Business to employ or seek
to employ any person or agent who is then (or was at any time
within six months prior to the date Employee or the Competitive
Business employs or seeks to employ such person) employed or
retained by the Company and with whom the Employee has had
contact as a result of his employment with the Company.
Notwithstanding the foregoing, nothing herein shall prevent
Company from providing a letter of recommendation to an
employee with respect to a future employment opportunity.
(iii) The scope and term of this SECTION 10 would not preclude him
from earning a living with an entity that is not a Competitive
Business.
(iv) The terms of this SECTION 10 shall survive termination of this
Agreement regardless of who terminates this Agreement, or the
reasons therefor.
(b) "COMPETITIVE BUSINESS" means any business which competes, directly or
indirectly, with the Company's, Parent's or any of their subsidiaries'
business, as of the Effective Date, in the Market.
12
(c) "MARKET" means any county in the United States of America and each
other similar jurisdiction in any other country in which the business
of the Company, Parent or any of their subsidiaries was conducted,
pursued by, or engaged in prior to the date hereof or is conducted or
engaged in or pursued, or is proposed to be imminently conducted,
engaged in or pursued, by the Company, Parent or any of their
subsidiaries during the Employment Period.
(d) "RESTRICTED PERIOD" means the period commencing on the date of this
Agreement and continuing for six (6) months from the Date of
Termination.
(e) In the event that Employee breaches his obligations in any material
respect under this SECTION 10, the Company, in addition to pursuing
all available remedies under this Agreement, at law or otherwise,
including but not limited to an injunction, and without limiting its
right to pursue the same, shall cease all payments and benefits to
Employee under SECTION 6 of this Agreement (provided that the
Restricted Period shall continue as if the payment continued for the
period originally provided for).
11. EMPLOYEE'S REPRESENTATIONS. Employee hereby represents and warrants to the
Company that (i) the execution, delivery and performance of this Agreement
by Employee do not and shall not conflict with, breach, violate or cause a
default under any contract, agreement, instrument, order, judgment or
decree to which Employee is a party or by which he is bound, (ii) Employee
is not a party to or bound by any employment agreement, noncompete
agreement or confidentiality agreement with any other person or entity and
(iii) upon the execution and delivery of this Agreement by the Company,
this Agreement shall be the valid and binding obligation of Employee,
enforceable in accordance with its terms. Employee hereby acknowledges and
represents that he has consulted with independent legal counsel regarding
his rights and obligations under this Agreement and that he fully
understands the terms and conditions contained herein.
12. MISCELLANEOUS.
(a) ATTORNEY'S FEES. Except as otherwise provided herein, Employee's
reasonable attorneys' fees actually incurred in connection with
negotiating and/or enforcing this Agreement shall be paid by the
Company.
(b) INSURANCE. The Company may, at its discretion, apply for and procure
in its own name and for its own benefit life and/or disability
insurance on Employee in any amount or amounts considered advisable.
Employee agrees to cooperate in any medical or other examination,
supply any information and execute and deliver any applications or
other instruments in writing as may be reasonably necessary to obtain
and constitute such insurance; PROVIDED, that the Company shall
request that any such information be held in confidence by the
applicable insurance company.
(c) NOTICES. All notices and other communications required or permitted
hereunder or necessary or convenient in connection herewith shall be
in writing and shall be
13
deemed to have been given when delivered by hand or mailed by
registered or certified mail, return receipt requested, as follows
(provided that notice of change of address shall be deemed given only
when received):
IF TO THE COMPANY TO:
GSE Lining Technology, Ltd.
c/o GSE International, Inc.
00000 Xxxxxx Xxxx
Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxx, Chief Executive Officer
WITH A COPY TO:
Code Xxxxxxxx & Xxxxxxx LLC
00 Xxxxx Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxxxx
Facsimile: (000) 000-0000
IF TO THE EMPLOYEE TO::
Xxxx Xxxxxxx Xxxxxxx
00 Xxxxx Xxxxx
Xxxxx Xxxxxxxxxxxxxx
Xxxxxxx XX0 0XX
or to such other names or addresses as the Company or the Employee, as
the case may be, shall designate by notice to the other party hereto
in the manner specified in this SECTION 12(c).
(d) WAIVER OF BREACH. The waiver by any party hereto of a breach of any
provision of this Agreement shall neither operate nor be construed as
a waiver of any subsequent breach by any party.
(e) NO MITIGATION; NO OFFSET. In the event of any termination of the
Employee's employment hereunder, the Employee shall be under no
obligation to seek other employment or otherwise mitigate the
obligations of the Company under this Agreement, and there shall be no
offset against amounts or benefits due the Employee under this
Agreement or otherwise on account of (a) any claim that the Company
may have against him or (b) any remuneration or other benefit earned
or received by the Employee after such termination.
(f) ASSIGNMENT. This Agreement shall be binding upon and inure to the
benefit of the Company, its successors, legal representatives and
assigns, and upon the Employee, his heirs, executors, administrators,
representatives and assigns; PROVIDED, HOWEVER, the Employee agrees
that his rights and obligations hereunder
14
are personal to him and may not be assigned without the express
written consent of the Company.
(g) ENTIRE AGREEMENT; NO ORAL AMENDMENTS. This Agreement, together with
any exhibit attached hereto and any document, policy, rule or
regulation referred to herein, replaces and merges all previous
agreements and discussions relating to the same or similar subject
matter between the Employee and the Company (including, without
limitation, that certain Letter Agreement, dated as of April 27, 1998,
between Employee and the GSE Lining Technology, Inc.) and constitutes
the entire agreement between the Employee and the Company with respect
to the subject matter of this Agreement. This Agreement may not be
modified in any respect by any verbal statement, representation or
agreement made by any employee, officer, or representative of the
Company or by any written agreement unless signed by an officer of the
Company who is expressly authorized by the Company to execute such
document.
(h) ENFORCEABILITY. If any provision of this Agreement or application
thereof to anyone or under any circumstances shall be determined to be
invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provisions or applications of this Agreement
which can be given effect without the invalid or unenforceable
provision or application.
(i) JURISDICTION; VENUE. The laws of England and Wales shall govern the
interpretation, validity and effect of this Agreement without regard
to the place of execution or the place for performance thereof. The
parties hereto hereby submit to the non-exclusive jurisdiction of the
English Courts.
(j) INDEMNIFICATION.
(i) If Employee is made a party or is threatened to be made a party
to or is involved in any action, suit or proceeding, whether
civil, criminal, administrative or investigative (hereinafter a
"PROCEEDING"), by reason of the fact that he is or was a
director or officer of the Company or is or was serving at the
request of the Company as a director, officer, employee,
fiduciary, or agent of another corporation or of a partnership,
joint venture, trust or other enterprise, Employee shall be
indemnified and held harmless by the Company to the fullest
extent which it is empowered to do so by the General
Corporation Law of the State of Delaware, as the same exists or
may hereafter be amended against all expense, liability and
loss (including attorneys' fees actually and reasonably
incurred by such person in connection with such proceeding) and
such indemnification shall inure to the benefit of his heirs,
executors and administrators; PROVIDED, HOWEVER, that, except
as provided in SECTION 12(j)(ii) hereof, the Company shall
indemnify any such person seeking indemnification in connection
with a proceeding initiated by such person only if such
proceeding was authorized by the Board.
15
(ii) Any indemnification of Employee under SECTION 12(j)(i) or
advance of expenses under SECTION 12(j)(iv) shall be made
promptly, and in any event within 30 days, upon the written
request of the Employee. If a determination by the Company that
the Employee is entitled to indemnification pursuant to this
SECTION 12(j) is required, and the Company fails to respond
within sixty days to a written request for indemnity, the
Company shall be deemed to have approved the request. If the
Company denies a written request for indemnification or
advancing of expenses, in whole or in part, or if payment in
full pursuant to such request is not made within 30 days, the
right to indemnification or advances as granted by this SECTION
12(j) shall be enforceable by the Employee in any court of
competent jurisdiction. Employee's costs and expenses incurred
in connection with successfully establishing his right to
indemnification, in whole or in part, in any such action shall
also be indemnified by the Company. It shall be a defense to
any such action (other than an action brought to enforce a
claim for expenses incurred in defending any proceeding in
advance of its final disposition where the required
undertaking, if any, has been tendered to the Company) that the
Employee has not met the standards of conduct which make it
permissible under the General Corporation Law of the State of
Delaware for the Company to indemnify the Employee for the
amount claimed, but the burden of such defense shall be on the
Company. Neither the failure of the Company (including the
Board, its independent legal counsel, or its stockholders) to
have made a determination prior to the commencement of such
action that indemnification of the Employee is proper in the
circumstances because he has met the applicable standard of
conduct set forth in the General Corporation Law of the State
of Delaware, nor an actual determination by the Company
(including the Board, its independent legal counsel, or its
stockholders) that the Employee has not met such applicable
standard of conduct, shall be a defense to the action or create
a presumption that the Employee has not met the applicable
standard of conduct.
(iii) The Company may purchase and maintain insurance on its own
behalf and on behalf of any person who is or was a director,
officer, employee, fiduciary, or agent of the Company or was
serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against any liability
asserted against him or her and incurred by him or her in any
such capacity, whether or not the Company would have the power
to indemnify such person against such liability under its
bylaws or the provisions of this Agreement.
(iv) Expenses incurred by Employee described in SECTION 12(j)(i) in
defending a proceeding shall be paid by the Company in advance
of such proceeding's final disposition unless otherwise
determined by the Board in the specific case upon receipt of an
undertaking by or on behalf of the
16
Employee to repay such amount if it shall ultimately be
determined that he is not entitled to be indemnified by the
Company.
(k) INJUNCTIVE RELIEF. The Company and the Employee agree that a breach of
any term of SECTIONS 8, 9 or 10 of this Agreement by the Employee
would cause irreparable damage to the Company and that, in the event
of such breach, the Company shall have, in addition to any and all
remedies of law, the right to any injunction, specific performance and
other equitable relief to prevent or to redress the violation of the
Employee's duties or responsibilities hereunder.
(l) EMPLOYEE'S COOPERATION. During the Employment Period and thereafter,
Employee shall cooperate with the Company and its Affiliates in any
internal investigation, any administrative, regulatory or judicial
proceeding or any dispute with a third party as reasonably requested
by the Company (including, without limitation, Employee being
available to the Company upon reasonable notice for interviews and
factual investigations, appearing at the Company's request to give
testimony without requiring service of a subpoena or other legal
process, volunteering to the Company all pertinent information and
turning over to the Company all relevant documents which are or may
come into Employee's possession, all at times and on schedules that
are reasonably consistent with Employee's other permitted activities
and commitments). In the event the Company requires Employee's
cooperation in accordance with this SECTION 12(l), the Company shall
reimburse Employee for reasonable travel expenses (including lodging
and meals) upon submission of receipts and in the event such
cooperation is provided by the Employee after the termination of the
Employment Period, the Company will pay Employee $300 for each day
Employee provides such cooperation.
(m) INDEMNIFICATION AND REIMBURSEMENT OF PAYMENTS ON BEHALF OF EMPLOYEE.
The Company and its Affiliates shall be entitled to deduct or withhold
from any amounts owing from the Company or any of its Affiliates to
Employee any federal, state, local or foreign withholding taxes,
excise tax, or employment taxes ("TAXES") imposed with respect to
Employee's compensation or other payments from the Company or any of
its Affiliates or Employee's ownership interest in the Company
(including, without limitation, wages, bonuses, dividends, the receipt
or exercise of equity options and/or the receipt or vesting of
restricted equity). In the event the Company or any of its Affiliates
does not make such deductions or withholdings, Employee shall
indemnify the Company and its Affiliates for any amounts paid with
respect to any such Taxes, together with any interest, penalties and
related expenses thereto.
(n) SURVIVAL OF CERTAIN PROVISIONS. Provisions in this Agreement which are
expressed to operate or have effect after the termination of this
Agreement or of the Employment Period shall remain in effect
thereafter, including, without limitation, SECTIONS 6, 8, 9, 10, 11
and 12(c) through 12(p).
17
(o) TAX DISCLOSURES. Notwithstanding anything herein to the contrary, the
Company and Employee and each other party to the transaction
contemplated hereby (and each affiliate and person acting on behalf of
any such party) agree that each party (and each employee,
representative and other agent of such party) may disclose to any and
all persons, without limitation of any kind, the tax treatment and tax
structure of the transaction and all materials of any kind (including
opinions or other tax analyses) that are provided to such party or
such person relating to such tax treatment and tax structure, except
to the extent necessary to comply with any applicable federal or state
securities laws. This authorization is not intended to permit
disclosure of any other information, including (without limitation)
(i) any portion of any materials to the extent not related to the tax
treatment or tax structure of the transaction, (ii) the identities of
participants or potential participants in the transaction, (iii) the
existence or status of any negotiations, (iv) any pricing or financial
information (except to the extent such pricing or financial
information is related to the tax treatment or tax structure of the
transaction) or (v) any other term or detail not relevant to the tax
treatment or the tax structure of the transaction.
(p) RECORD KEEPING AND DATA PROTECTION.
(i) In order to keep and maintain records relating to the
Executive's employment it will be necessary for the Company to
record, keep and process personal data relating to the
Executive. This data may be recorded, kept and processed on
computer and in hard copy form. To the extent that it is
reasonably necessary in connection with the Executive's
employment and the performance of the Company's
responsibilities as an employer, it may be necessary for the
Company to disclose this data to others, including other
employees of the Company and its Affiliates, the Company's
professional advisers, the Inland Revenue and other
authorities. The Executive consents to the recording,
processing, use and disclosure by the Company of personal data
relating to the Executive as set out above. This does not
affect the Executive's rights as a data subject or the
Company's obligations and responsibilities under the Data
Protection Xxx 0000 and/or the Data Protection Act 1998 (the
latter being, the "DPA"). For the purposes of these Acts, the
Company has nominated the Company Secretary as its
representative.
(ii) The Executive agrees that personal data (other than sensitive
personal data) as defined in the Data Protection Acts 1984 and
1998, relating to the Executive and his employment may to the
extent that it is reasonably necessary in connection with the
Executive's employment or the business of the Company or its
Affiliates may:
(A) be collected and held (in hard copy and computer readable
form) and processed by the Company and/or any Affiliate;
and
(B) be disclosed or transferred:
18
(1) to other employees of the Company;
(2) to any Affiliates and their employees;
(3) to any other persons as may be reasonably
necessary; or
(4) as otherwise required or permitted by law.
(iii) The Executive agrees that the Company and/or any Affiliate may
process sensitive personal data relating to him, including
medical details and details of gender, race and ethnic origin.
Personal data relating to gender, race and ethnic origin will
be processed by the Company and/or any Affiliate only for the
purpose of monitoring the Company's and/or any Affiliate's
equal opportunity policy with a view to enabling equal
opportunity to be promoted and maintained. The Executive agrees
that the Company and/or any Affiliate may disclose or transfer
such sensitive personal data to other Persons if it is required
or permitted by law to do so or, for the purpose of monitoring,
the Company's and/or any Affiliate's equal opportunity policy.
(iv) The Executive consents to the transfer and disclosure of
personal data as set out above applying regardless of the
country of residence of the Person to whom the data is to be
transferred. Where the disclosure or transfer is to a Person
resident outside the European Economic Area, the Company and/or
any Affiliate shall take reasonable steps to ensure that the
Executive's rights and freedom in relation to the processing of
the relevant personal data are adequately protected.
(v) The Executive agrees that the Company and any Affiliate may
intercept and monitor communications transmitted by or to the
Executive via any private telecommunications systems or
services of the Company or any Affiliate.
(vi) Some of the personal details the Company holds about the
Executive may be sensitive personal data (as defined by the
DPA). This includes information as to racial or ethnic origin.
The Company uses information as to racial or ethnic origin for
the purpose of monitoring equality of opportunity or treatment
between employees of different racial or ethnic origins with a
view to enabling such equality to be promoted or maintained.
(vii) Certain aspects of staff administration of Company employees is
dealt with on the Company's behalf by the parent of the Company
in its US office (the "US OFFICE"). The addresses of the US
Office is as follows:
GSE International, Inc.
00000 Xxxxxx Xxxx
Xxxxxxx, XX 00000
19
(viii) Accordingly, to the extent that it is necessary for the purpose
of staff administration during the Executive's employment with
the Company:
(A) the Company will disclose Executive's personal details to
the US Office (this might be by entering the Executive's
personal details into the databases of the US Office or
by transferring such details to the US Office in person,
over the telephone, by post, by facsimile or by email);
and
(B) the US Office will process and hold the Executive's
personal details.
(ix) As the US is not a part of the European Economic Area, the US
Office is not under a legal obligation to comply with the
provisions of the DPA. However, as the Company is committed to
protecting the Executive's personal information the US Office
has confirmed that it will:
(A) not use or disclose the Executive's personal data except
as may be required for the performance of its
obligations;
(B) comply with any lawful and reasonable instructions from
the Company; and
(C) take appropriate technical and organizational security
measures against the unauthorized or unlawful processing
of the Executive's personal data and against the
accidental loss or destruction of, or damage to, the
Executive's personal data.
(x) All references to personal details or personal data above
include references to sensitive personal data (as defined by
the DPA).
(xi) The Executive agrees to comply with all aspects of any policies
that may from time to time be published by the Company in
relation to its e-mail and Internet policy.
20
IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have
executed this Executive Employment Agreement as a DEED as of the date first
written above.
Executed and delivered as a deed )
for and on behalf of )
GSE LINING TECHNOLOGY LIMITED )
Director /s/ XXXXX XXXXXXXX
Director/Secretary Xxxxx Xxxxxxxx
Executed and delivered as a deed ) /s/ XXXX X. XXXXXXX
By XXXX XXXXXXX XXXXXXX ) ------------------------
in the presence of: )
Witness name: Xxxxxx Xxxx
------------------------
Witness signature: /s/ XXXXXX XXXX
------------------------
Witness occupation: M.D. MAN. DIRECTOR
------------------------
Witness address: XXXXXXXXXXX XXX. 0x
00000 XXXXXXXXXXX
XXXXXXX
------------------------
EXHIBIT A
GENERAL RELEASE
I, Xxxx Xxxxxxx Xxxxxxx, in consideration of and subject to the performance
by GSE Lining Technology, Ltd., a corporation formed under the laws of the
United Kingdom (together with its subsidiaries, the "COMPANY"), of its
obligations under the Employment Agreement, dated as of May 18, 2004 (the
"AGREEMENT"), do hereby release and forever discharge as of the date hereof the
Company and its affiliates and all present and former directors, officers,
agents, representatives, employees, successors and assigns of the Company and
its affiliates and the Company's direct or indirect owners (collectively, the
"RELEASED PARTIES") to the extent provided below.
1. I understand that any payments or benefits paid or granted to me under
SECTION 6 of the Agreement represent, in part, consideration for signing
this General Release and are not salary, wages or benefits to which I was
already entitled. I understand and agree that I will not receive the
payments and benefits specified in SECTION 6 of the Agreement unless I
execute this General Release and do not revoke this General Release within
the time period permitted hereafter or breach this General Release. Such
payments and benefits will not be considered compensation for purposes of
any employee benefit plan, program, policy or arrangement maintained or
hereafter established by the Company or its affiliates. I also acknowledge
and represent that I have received all payments and benefits that I am
entitled to receive (as of the date hereof) by virtue of any employment by
the Company.
2. Except as provided in paragraph 4 below and except for the provisions of my
Employment Agreement which expressly survive the termination of my
employment with the Company, I knowingly and voluntarily (for myself, my
heirs, executors, administrators and assigns) release and forever discharge
the Company and the other Released Parties from any and all claims, suits,
controversies, actions, causes of action, cross-claims, counter-claims,
demands, debts, compensatory damages, liquidated damages, punitive or
exemplary damages, other damages, claims for costs and attorneys' fees, or
liabilities of any nature whatsoever in law and in equity, both past and
present (through the date this General Release becomes effective and
enforceable) and whether known or unknown, suspected, or claimed against the
Company or any of the Released Parties which I, my spouse, or any of my
heirs, executors, administrators or assigns, may have, which arise out of or
are connected with my employment with, or my separation or termination from,
the Company (including, but not limited to, any allegation, claim or
violation, arising under: Title VII of the Civil Rights Act of 1964, as
amended; the Civil Rights Act of 1991; the Age Discrimination in Employment
Act of 1967, as amended (including the Older Workers Benefit Protection
Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities
Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment
Retraining and Notification Act; the Employee Retirement Income Security Act
of 1974; any applicable Executive Order Programs; the Fair Labor Standards
Act; or their state or local counterparts; or under any other federal, state
or local civil or human rights law, or under any other local, state, or
federal law, regulation or ordinance; or under any public policy, contract
or tort, or under common law; or arising under any policies, practices or
procedures of the Company; or any claim for wrongful discharge, breach of
contract, infliction of emotional distress, defamation; or any claim for
costs, fees, or other expenses, including attorneys' fees incurred in these
matters) (all of the foregoing collectively referred to herein as the
"CLAIMS").
3. I represent that I have made no assignment or transfer of any right, claim,
demand, cause of action, or other matter covered by paragraph 2 above.
4. I agree that this General Release does not waive or release any rights or
claims that I may have under the Age Discrimination in Employment Act of
1967 which arise after the date I execute this General Release. I
acknowledge and agree that my separation from employment with the Company in
compliance with the terms of the Agreement shall not serve as the basis for
any claim or action (including, without limitation, any claim under the Age
Discrimination in Employment Act of 1967).
5. In signing this General Release, I acknowledge and intend that it shall be
effective as a bar to each and every one of the Claims hereinabove mentioned
or implied. I expressly consent that this General Release shall be given
full force and effect according to each and all of its express terms and
provisions, including those relating to unknown and unsuspected Claims
(notwithstanding any state statute that expressly limits the effectiveness
of a general release of unknown, unsuspected and unanticipated Claims), if
any, as well as those relating to any other Claims hereinabove mentioned or
implied. I acknowledge and agree that this waiver is an essential and
material term of this General Release and that without such waiver the
Company would not have agreed to the terms of the Agreement. I further agree
that in the event I should bring a Claim seeking damages against the
Company, or in the event I should seek to recover against the Company in any
Claim brought by a governmental agency on my behalf, this General Release
shall serve as a complete defense to such Claims. I further agree that I am
not aware of any pending charge or complaint of the type described in
paragraph 2 as of the execution of this General Release.
6. I agree that neither this General Release, nor the furnishing of the
consideration for this General Release, shall be deemed or construed at any
time to be an admission by the Company, any Released Party or myself of any
improper or unlawful conduct.
7. I agree that I will forfeit all amounts payable by the Company pursuant to
the Agreement if I challenge the validity of this General Release. I also
agree that if I violate this General Release by suing the Company or the
other Released Parties, I will pay all costs and expenses of defending
against the suit incurred by the Released Parties, including reasonable
attorneys' fees, and return all payments received by me pursuant to the
Agreement.
8. I agree that this General Release is confidential and agree not to disclose
any information regarding the terms of this General Release, except to my
immediate family and any tax, legal or other counsel I have consulted
regarding the meaning or effect hereof or as required by law, and I will
instruct each of the foregoing not to disclose the same to anyone.
Notwithstanding anything herein to the contrary, each of the parties (and
each affiliate and person acting on behalf of any such party) agree that
each party (and each employee, representative, and other agent of such
party) may disclose to any and all persons, without limitation of any kind,
the tax treatment and tax structure of this transaction contemplated in the
Agreement and all materials of any kind (including opinions or other tax
analyses) that are provided to such party or such person relating to such
tax treatment and tax structure, except to the extent necessary to comply
with any applicable federal or state securities laws. This authorization is
not intended to permit disclosure of any other information including
2
(without limitation) (i) any portion of any materials to the extent not
related to the tax treatment or tax structure of this transaction, (ii) the
identities of participants or potential participants in the Agreement, (iii)
any financial information (except to the extent such information is related
to the tax treatment or tax structure of this transaction), or (iv) any
other term or detail not relevant to the tax treatment or the tax structure
of this transaction.
9. Any non-disclosure provision in this General Release does not prohibit or
restrict me (or my attorney) from responding to any inquiry about this
General Release or its underlying facts and circumstances by the United
States Securities and Exchange Commission (SEC), the National Association of
Securities Dealers, Inc. (NASD), any other self-regulatory organization or
governmental entity.
10. I agree to reasonably cooperate with the Company in any internal
investigation, any administrative, regulatory, or judicial proceeding or any
dispute with a third party. I understand and agree that my cooperation may
include, but not be limited to, making myself available to the Company upon
reasonable notice for interviews and factual investigations; appearing at
the Company's request to give testimony without requiring service of a
subpoena or other legal process; volunteering to the Company pertinent
information; and turning over to the Company all relevant documents which
are or may come into my possession all at times and on schedules that are
reasonably consistent with my other permitted activities and commitments. I
understand that in the event the Company asks for my cooperation in
accordance with this provision, the Company will reimburse me for reasonable
travel expenses, (including lodging and meals), upon my submission of
receipts and in the event I provide such cooperation after the termination
of the Employment Period, the Company will pay me $300 for each day I
provide such cooperation.
11. I agree not to disparage the Company, its past and present investors,
officers, directors or employees or its affiliates and to keep all
confidential and proprietary information about the past or present business
affairs of the Company and its affiliates confidential unless a prior
written release from the Company is obtained. I further agree that as of the
date hereof, I have returned to the Company any and all property, tangible
or intangible, relating to its business, which I possessed or had control
over at any time (including, but not limited to, company-provided credit
cards, building or office access cards, keys, computer equipment, manuals,
files, documents, records, software, customer data base and other data) and
that I shall not retain any copies, compilations, extracts, excerpts,
summaries or other notes of any such manuals, files, documents, records,
software, customer data base or other data.
12. Notwithstanding anything in this General Release to the contrary, this
General Release shall not relinquish, diminish, or in any way affect any
rights or claims arising out of any breach by the Company or by any Released
Party of the Agreement after the date hereof.
13. Whenever possible, each provision of this General Release shall be
interpreted in, such manner as to be effective and valid under applicable
law, but if any provision of this General Release is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision or any other jurisdiction, but this General
Release shall be reformed,
3
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.
BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:
(i) I HAVE READ IT CAREFULLY;
(ii) I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP
IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER
THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED,
TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE
EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF
1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED;
(iii) I VOLUNTARILY CONSENT TO EVERYTHING IN IT;
(iv) I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE
EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND
CONSIDERATION I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;
(v) I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS
RELEASE SUBSTANTIALLY IN ITS FINAL FORM ON _______________ __,
_____ TO CONSIDER IT AND THE CHANGES MADE SINCE THE
_______________ __, _____ VERSION OF THIS RELEASE ARE NOT
MATERIAL AND WILL NOT RESTART THE REQUIRED 21-DAY PERIOD;
(vi) THE CHANGES TO THE AGREEMENT SINCE _______________ ___, _____
EITHER ARE NOT MATERIAL OR WERE MADE AT MY REQUEST.
(vii) I UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS
RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME
EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS
EXPIRED;
(viii) I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY
AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH
RESPECT TO IT; AND
(ix) I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE
AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN
WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY
AND BY ME.
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Dated: _______________
Executed and delivered as a deed ) ________________________
By XXXX XXXXXXX XXXXXXX )
in the presence of: )
Witness name: ________________________
Witness signature: ________________________
Witness occupation: ________________________
Witness address: ________________________
________________________
________________________
________________________
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