1
EXHIBIT 10.1(a)
[AII LETTERHEAD]
June 14, 2000
Xx. Xxxxx X Xxxxxxx
0000 Xxxxx xx Xxxxxxxx
Xxxxxxxx Xxxx, XX 00000
Re: Employment Agreement
Dear Xx. Xxxxxxx:
On behalf of Autologic Information International, Inc. ("AIII"),
I am pleased to confirm our verbal offer of employment. This letter will set
forth our offer of employment which, when accepted by you, will constitute the
terms of your Employment Agreement (the "Agreement") with AIII.
1. TERM OF EMPLOYMENT. AIII hereby agrees to employ you and you hereby
agree to be employed by AIII effective June 14, 2000 and continuing thereafter
for an indefinite period, subject to termination at any time for any reason,
with or without cause, by either you or AIII by giving four (4) months prior
written notice to the other, and your employment shall terminate upon the
expiration of such period; provided, however, that, in the event that you give
such notice and become employed by another business during such 4-month period,
your employment shall terminate when you commence work for such other business.
For purposes of this Agreement, the period during which you work for
AIII shall hereinafter be called the "Term of Employment."
During the Term of Employment, you will: (a) serve as President/Chief
Operating Officer of AIII; (b) devote your full time services to the best of
your ability, using your best efforts to promote the interests and business of
AIII; and (c) not engage in any type of activity which is or may be contrary to
the welfare, interests, business or benefit of AIII or the business conducted by
AIII now or in the future.
2
Your employment is conditioned on your producing proof of identity and
eligibility to legally work in the United States as per the Immigration Reform
and Control Act of 1986.
2. COMPENSATION. In consideration for all services to be performed by
you pursuant to this Employment Agreement, and provided that you have acted in
accordance and continue to act in accordance with the provisions of this
Agreement. AIII will pay you:
(a) Salary- an annual equivalent of $210,000. per year payable
in accordance with AIII's usual practices.
(b) You will be eligible for a discretionary bonus, determined
in the sole discretion of AIII's Board of Directors.
Benefits- in accordance with AIII's usual practices for
executives.
Expense reimbursement for approved expenses- in accordance with
AIII's usual practices.
A car.
AIII will also grant to you options to purchase 15,000 shares of AIII
common stock pursuant to AIII's 1995 Stock Option Plan at a price equal to 100 %
of the fair market value of AIII stock today. 3,000 options will vest
immediately and 4,000 will vest on the first, second and third anniversary of
this agreement.
All payments will be subject to such deductions by AIII as AIII is from
time to time required to make pursuant to law, government regulations or order,
or by agreement with or consent of you. Such payments may be made by check or
checks of AIII, or any of its parents, subsidiaries or affiliates as AIII may,
from time to time, find proper and appropriate.
3. COVENANT NOT TO SOLICIT/COMPETE. You acknowledge that AIII will pay
to you your salary during the Term of Employment, as above defined, and will
continue to make significant investments in order to enable you to do your job
better, and that AIII, its subsidiaries and affiliates (collectively, the
"Company"), has and will disclose to you confidential information concerning its
techniques and methods of obtaining and servicing its customers and pricing
information and specific needs of its customers, and that the Company has and
will extend to you the opportunity to develop personal contacts with its present
and potential customers. You further acknowledge that the methods employed in
the Company's business are such that place you in close business and personal
contact with the Company's customers. Accordingly, you agree as follows:
During the Term of Employment you will not, directly or indirectly,
either for yourself or for any other person, firm, company, or corporation, in
any way, engage in a business similar to the type of business conducted by the
Company, nor compete with AIII or its subsidiaries or affiliates, and you will
not, directly or indirectly, either for yourself or for any other person, firm,
company or corporation call upon, solicit, divert or take away or attempt to
solicit, divert or take away any person, firm, company or corporation who is
doing or has done business with or who has communicated with or been solicited
by AIII to do business during the Term of Employment.
During the Term of Employment and for one (1) year after the termination
of the Term of Employment you will not directly or indirectly, either for
yourself or for any other person, firm, company, or corporation, hire or employ
any employees of the Company, or solicit or encourage any employees of the
Company, to leave their employ.
You agree not to, at any time during or after the termination of this
Agreement, engage in any business which uses as its name, in whole or in part,
the name "Autologic" or "Information International".
3
For purposes of Article 3(a), 3(b), and 3(c), you will be deemed to be
engaged in a business if you participate in such business as proprietor,
partner, joint venturer, stockholder, director, officer, lender, manager,
employee, consultant, advisor or agent, or if in any way you control such
business. However, you will not be deemed a stockholder or lender if you hold
less than five percent (5%) of the outstanding equity or debt of any
publicly-owned corporation engaged in the same or similar business as that of
AIII or any of its subsidiaries or affiliates, provided you are not in a control
position with respect to such corporation.
4. DISCLOSURE. You agree further that at no time will you either
directly or indirectly make known or divulge to any other person, firm or
corporation:
(a) The names and addresses of any of the customers or patrons
of AIII at the time you entered the employ of the Company or with whom you
became acquainted during the Term of Employment (whether such customers or
patrons have been obtained by you or otherwise); or
(b) Any information concerning the Company's methods of
conducting business, obtaining customers or operations; or
(c) The names, addresses , telephone numbers or
compensation/rate of pay of any employees of the Company; or
(d) Any other confidential information or trade secret of the
Company or any of the Company's customers, learned or acquired by you during the
Term of Employment.
5. INVENTIONS. As between you and AIII, all discoveries, ideas,
creations, inventions and properties related to the business of AIII
(collectively called "Discoveries"), written or oral, which are:
(a) created, developed, invented or used by you during the Term
of Employment, whether or not created, conceived, discovered and/or developed by
you during regular working hours; or which are
(b) created, developed, invented, or used by the Company,
whether or not in connection with your employment by the Company will be the
sole and absolute property of the Company for any and all purposes whatsoever,
in perpetuity. You will not have, and will not claim to have, any right, title
or interest of any kind or nature whatsoever in or to any such Discoveries.
The previous paragraph does not apply to any discovery for which no
equipment, supplies, facility or trade secret information of the Company or any
customer was used and which was developed entirely on your own time, and
(a) which does not relate to the business of the Company or to
the Company's or customer's actual or demonstrably anticipated research or
development; or
(b) which does not result from any work performed for the
Company and its customers. You further agree that during the Term of Employment,
all inventions being developed by you shall be identified to the Company. Upon
request by the Company, you will disclose any such invention to the Company (by
a full and clear description) for the purpose of determining the Company's
rights therein.
6. RETURN OF PROPERTY. The original and all copies of all financial
information, software, files, records, drawings, specifications and other
documents of any nature whatsoever, whether prepared by you
4
or otherwise coming into your possession while employed by the Company, are and
shall remain the exclusive property of the Company and may not be used except as
required in the course of employment by the Company. On termination of your
employment, and regardless of the reason for termination, you will immediately
return to the Company any and all Company property and all other material which
you were given or had access to during the Term of Employment.
7. ARBITRATION. Any dispute, controversy or claim arising out of,
involving, affecting or related to this Agreement, or breach of this Agreement,
or arising out of, involving, affecting or related in any way to your employment
or the termination of your employment, including but not limited to disputes,
controversies or claims arising out of or related to the actions of the
Company's other employees, under Federal, State and/or local laws, shall be
resolved by binding arbitration in accordance with the applicable rules of the
American Arbitration Association in the state where you are or were last
employed by the Company. The arbitrator shall be entitled to award reasonable
attorneys fees and costs to the prevailing party. The award shall be in writing,
signed by the arbitrator, and shall provide the reasons for the award. The
arbitrator(s) sitting in any such controversy shall have no power or
jurisdiction to alter or modify any provision of this Agreement, or to make any
award which by its terms affects any such alteration or modification. The
parties hereto consent to the jurisdiction of Courts of such State, and the
United States District Courts in such State and to jurisdiction under the
Federal Arbitration Act as well as the arbitration statutes of such State for
all purposes in connection with said arbitration, and further consent that any
process or notice of motion or other application to a court or judge thereof in
connection therewith may be served inside or outside such State by personal
service or by registered or certified mail, provided a reasonable time for
appearance is allowed, or in such other manner as may be permitted under the
rules of the American Arbitration Association or of either of said courts. A
judgment may be entered upon an award by any court of competent jurisdiction.
Should the foregoing arbitration agreement be unenforceable for any
reason, Company and you hereby waive their respective right to trial by jury of
any cause of action, claim, counterclaim or cross complaint in any action,
proceeding and/or hearing between you and Company and/or Company's other
employees.
This Agreement to Arbitrate Disputes does not prevent you from filing a
charge or claim with any governmental administrative agency as permitted by
applicable law.
8. NOT A CONTRACT FOR CONTINUED EMPLOYMENT. The parties understand and
agree that nothing contained in this Agreement is intended to constitute a
contract of continued employment. Either party may cancel or terminate your
employment at any time, for any reason, with or without cause, subject only to
the giving of notice as set forth in paragraph 1 above. Any amendment,
modification or variation in terms of this paragraph must be in writing and
signed on behalf of AIII by its Chairman, no other officer or employee is
authorized to amend, modify or vary this paragraph.
9. INJUNCTIVE RELIEF. The parties hereto recognize that irreparable
damage will result to the Company, its business and properties if you fail or
refuse to perform your obligations under this Agreement, and that the remedy at
law for any such failure or refusal will be inadequate. Accordingly, in addition
to any other remedies and damages available, including the provision contained
in Article 7 for arbitration (none of which remedies or damages is hereby
waived), the Company shall be entitled (which the Company may seek without
having to first resort to arbitration) to injunctive relief and you may be
specifically compelled to perform your obligations under this Agreement. The
institution of any arbitration proceedings shall not bar injunctive relief
pending the final determination of the arbitration proceedings hereunder.
10. INVALIDITY AND SEVERABILITY. If any provision of this Agreement is
held invalid or unenforceable, such invalidity or unenforceability shall not
affect the other provisions of this Agreement and, to that extent, the
provisions of this Agreement are intended to be and shall be deemed severable.
In particular and without limiting the foregoing sentence, in the event any
provision of Article 3 of this Agreement shall be held
5
to be invalid or unenforceable by reason of geographic or business scope or the
duration thereof, such invalidity or unenforceability shall not attach to any
other provisions of Article 3 or any other Article of this Agreement, and this
Agreement and any such provisions shall be construed as if the geographic or
business scope or the duration of such provisions had been more narrowly drawn
so as not to be invalid or unenforceable.
The covenants contained in Articles 3, 4, 5 and 6 shall be construed as
an Agreement independent of any other provision of this Agreement, and any claim
or cause of action by you, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of such
covenants.
11. ASSIGNMENT. This Agreement may be assigned by AIII. This Agreement
may not be assigned by you.
12. FURTHER INSTRUMENTS. You will execute and deliver all such other
further instruments and documents as may be necessary, in the opinion of the
Company, to carry out the purposes of this Agreement or to confirm, assign or
convey to the Company the discoveries, ideas, inventions or properties referred
to in Article 5 hereof, including the execution of all patent, copyright,
trademark or tradename applications, provided that such instruments and
documents do not vary the terms of this Agreement.
13. WAIVER OF BREACH. Waiver by either party of a breach of any
provision of this Agreement by the other shall not operate or be construed as a
waiver of any subsequent breach by such other party.
14. NOTICES. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and if sent by registered or
certified mail (which notice shall be effective three business days after
mailed) or recognized overnight courier service (which notice shall be effective
on the business day after receipt is accepted by such courier service from the
Company) as follows:
As to you: Xxxxx X. Xxxxxxx
0000 Xxxxx xx Xxxxxxxx
Xxxxxxxx Xxxx, XX 00000
As to Company: 0000 Xxxxxx Xxxxxx Xxxx.
Thousand Oaks, CA 91320-1794
Attn.: Xxxx Xxxxxxxx
with copy to:
Legal Department
Autologic
000 Xxxxxxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
or to such other address as either party hereto may designate by notice given in
accordance with this Agreement.
15. APPLICABLE LAW. This Agreement is to be governed by and construed in
accordance with the internal laws of the State of California.
16. THIRD PARTY INFORMATION. During the course of employment by the
Company, you will not disclose to the Company any secret or confidential
information owned by a third party. You further agree to inform the Company in
writing if anything disclosed by you to the Company is known or believed by you
to be the subject matter of a Patent or Copyright or other right of any third
party.
6
17. NO RESTRICTION. You represent and warrant that you are under no
obligation or restriction, nor will you assume any such obligation or
restriction, which would in any way interfere, be inconsistent with or be in
conflict with your employment by AIII. You will not violate any existing
agreements you may have with your former employers.
18. ENTIRE AGREEMENT. This instrument contains the entire agreement of
the parties as to the subject matter hereof. It may not be changed orally, but
only by an agreement in writing, signed by the party against whom enforcement of
any waiver, change, modification, extension or discharge is sought.
If you agree with the foregoing, please sign your name on both copies of
this Agreement and return them to me.
Very truly yours,
AUTOLOGIC INFORMATION
INTERNATIONAL, INC.
By: /s/ Xxxxxxx Xxxx
--------------------------
Xxxxxxx Xxxx, Chairman
READ AND AGREED TO:
/s/ Xxxxx X. Xxxxxxx
-----------------------------
Xxxxx X. Xxxxxxx