EXHIBIT 10.30
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT, is made and entered into as of the 21st day of
December, 1998, by and between TEMPLATE SOFTWARE, INC., a Virginia corporation
(the "Company") and Xxxxxx X. Xxxxxxxxxx (the "Consultant").
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RECITALS
A. The Company desires to retain Consultant to provide the services
hereinafter set forth.
B. Consultant is willing to provide such services to the Company on the
terms and conditions hereinafter set forth.
AGREEMENT
In consideration of the promises and the terms and conditions set forth in
this Agreement, the parties agree as follows:
1. EMPLOYMENT AND TERM. The Company agrees to employ the Consultant and
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the Consultant agrees to work for the Company, subject to the terms and
conditions below, for a term of one year, beginning January 1, 1999, and ending
December 31, 1999.
2. COMPENSATION; BENEFITS. Subject to the terms and conditions of this
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Agreement, the Company shall pay to the Consultant an hourly rate of $175 for
all hours worked, payable in accordance with the Company's regular payroll
policies for part time employees. The Company shall use Consultant for a
minimum of 75 days, and more upon mutual agreement of the parties. In the event
that the Company does not assign tasks requiring a total of 75 days to perform
throughout the term of the Agreement, Consultant may, at his sole discretion,
work less than the 75 days minimum. The Consultant shall be reimbursed for all
expenses incurred as a result of performing the tasks assigned by the Company.
In addition to the hourly payments and expense reimbursement, the Consultant
shall be entitled to the Company's standard medical and dental insurance
coverage, inclusion in the Company 401k plan, use of a mobile telephone and
continuation of the Consultant's life insurance policy in place as of the date
of this Agreement. Notwithstanding the foregoing, the Company reserves the
right to adopt, amend or discontinue any employee benefit plan or policy in
accordance with then-applicable law.
3. DUTIES. The Consultant shall initially be employed as an executive
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consultant. The Consultant shall diligently and conscientiously perform tasks
mutually agreed and assigned to him by the CEO or his designate. Agreement on
proposed tasks shall not be unreasonably withheld by Consultant so long as the
tasks cause no conflict with previously committed activities of Consultant.
Consultant shall endeavor to make a minimum of 75 working days available to the
Company for agreed tasks in the timeframe requested by the
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Company. Tasks assigned are expected to be in the following areas:
(a) Due diligence on acquisitions or partnerships (on the company or
its technology).
(b) Account support sales strategies, project planning, or project
audits.
(c) Strategic and operational planning.
(d) Operational audits regarding adherence to plan.
(e) Product definition, creation, or re-engineering (for acquired
technology) strategies.
(f) Y2K readiness planning support.
4. RIGHT TO CONTRACT; CONFLICT OF INTEREST. The Consultant hereby
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represents and warrants to the Company that (i) he has full right and authority
to enter into this Agreement and to perform his obligations hereunder, and (ii)
the execution and delivery of this Agreement by the Consultant and the
performance of the Consultant's obligations hereunder will not conflict with or
breach any agreement, order or decree to which the Consultant is a party or by
which he is bound.
5. TERMINATION BY THE COMPANY.
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(a) The Company shall have the right to terminate this Agreement with
or without cause at any time during the term of this Agreement by giving written
notice to the Consultant. The termination shall become effective on the date
specified in the notice, which termination date shall not be a date prior to the
date 5 days following the date of the notice of termination itself. In the
event that the Consultant is terminated for cause, the Company shall pay the
Consultant for hours worked through the effective date of termination. In the
event that the Consultant is terminated without cause, the Company shall pay to
the Consultant an amount equal to $1400 per day times the net of 75 days and the
number of days worked under this Agreement through the date of notice of
termination.
(b) For purposes of this Section 6, "cause" shall mean (i) a material
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breach by the Consultant of any covenant or condition hereunder; (ii) a material
neglect of duty by the Consultant; or (iii) the commission by the Consultant of
any act or omission constituting gross negligence, dishonesty, fraud, immoral or
disreputable conduct which is, or in the reasonable opinion of the Company's
Board of Directors is likely to be, harmful to the Company or its reputation.
6. TERMINATION BY DEATH OR DISABILITY OF THE CONSULTANT.
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(a) In the event of the Consultant's death during the term of this
Agreement, all obligations of the parties hereunder shall terminate immediately,
and the Company shall pay to the Consultant's beneficiary or estate, the salary
and other compensation due the Consultant through the day on which his death
shall have occurred.
(b) If the Consultant is unable to perform his duties hereunder due to
mental,
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physical or other disability for a period of 90 consecutive business days, as
determined by the Company, or for 90 business days in any period of 12
consecutive months, this Agreement may be terminated by the Company, at its
option, by written notice to the Consultant, effective on the termination date
specified in such notice, provided such termination date shall not be a date
prior to the date of the notice of termination itself. In this case, the Company
will pay the Consultant for hours worked and other compensation due him through
the day on which such termination is effective.
7. TERMINATION BY THE CONSULTANT.
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(a) The Consultant may voluntarily terminate this Agreement at any
time, with or without cause, by giving 30 days written notice to the Company.
Any such termination, if without cause, shall become effective on the date
specified in such notice, provided that the Company may elect to have such
termination become effective on a date after, but not more than 14 days after,
the date of the notice. If such termination is with cause, it shall become
effective on the 30 days after the date of such notice, provided the Company has
failed to cure the cause specified in the notice.
(b) After the date of any such termination, the Consultant shall be
entitled to payment for hours worked due him through the day on which such
termination becomes effective, unless such termination was for cause, in which
case he shall be entitled to receive from the Company compensation equal to the
compensation the Consultant would have received had the Company terminated this
Agreement without cause pursuant to Section 5(a).
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(c) For purposes of this Section 7, "cause" shall mean a material
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failure by the Company to perform its obligations under this Agreement.
8. SUSPENSION. In the event the Company has reasonable cause to
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believe that there exists cause for termination of this Agreement as defined in
Section 5, immediately upon written notice to the Consultant, the Company may
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but shall not be obligated to suspend the Consultant, with pay, for a period not
to exceed four (4) weeks, either as a disciplinary measure or in order to
investigate the Company's belief that such cause exists. No such suspension
shall prevent the Company from thereafter exercising its rights to terminate
this Agreement in accordance with its terms.
9. NON-COMPETITION AND NON-SOLICITATION.
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(a) Non-Competition. The Consultant agrees that, during his
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employment hereunder, and for a period of two (2) months after the later of (i)
the effective date of termination of this Agreement, (ii) the date on which the
Consultant's period of compensated severance hereunder expires, or (iii) the
date of entry by a court of competent jurisdiction of a final judgment enforcing
this covenant, he will not, in any geographic area where the Company engages in
its Business (as defined below) or maintains sales or service representatives or
employees interfere with or disrupt, or attempt to interfere with or disrupt,
the relationship, contractual or otherwise, between the Company, or any
subsidiary or affiliate of the Company, and any customer, supplier or employee
of the Company, or any such subsidiary or affiliate;
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(b) Non-Solicitation. The Consultant agrees that, during his
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employment hereunder, and for a period of two (2) years after the later of (i)
the effective date of termination of this Agreement, (ii) the date on which the
Consultant's period of compensated severance hereunder expires, or (iii) the
date of entry by a court of competent jurisdiction of a final judgment enforcing
this covenant, he will not offer employment to any current employee of the
Company or solicit (directly or indirectly, either individually or in connection
with any employer or other business partner) any current employee of the Company
to accept employment elsewhere.
(c) The term "affiliate" means any person, firm or corporation,
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directly or indirectly through one or more intermediaries, controlling,
controlled by or under common control with the Company.
10. CONFIDENTIALITY AND NON-DISCLOSURE.
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(a) The Consultant shall hold in strict confidence and shall not,
either during the term of this Agreement or after the termination hereof,
disclose, directly or indirectly, to any third party, person, firm, corporation
or other entity, irrespective of whether such person or entity is a competitor
of the Company or is engaged in a business similar to that of the Company, any
trade secrets or other proprietary or confidential information of the Company or
any subsidiary or affiliate (as defined in Section 9) of the Company obtained by
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the Consultant from or through his employment hereunder. The Consultant hereby
acknowledges and agrees that all proprietary information referred to in this
Section 10 shall be deemed trade secrets of the Company and of its subsidiaries
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and affiliates, as defined in Section 9, and that the Consultant shall take such
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steps, undertake such actions and refrain from taking such other actions, as
mandated by the provisions hereof and by the provisions of the Virginia Uniform
Trade Secret Act. Consultant further acknowledges that the Company's products
and titles consist of copyrighted material, and Consultant shall exercise his
best efforts to prevent the use of such copyrighted material by any person or
entity which has not prior thereto been authorized to use such information by
the Company.
(b) The Consultant further hereby agrees and acknowledges that any
disclosure of any proprietary information prohibited herein, or any breach of
the provisions of Sections 4 or 9 of this Agreement, may result in irreparable
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injury and damage to the Company which will not be adequately compensable in
monetary damages, that the Company will have no adequate remedy at law therefor,
and that the Company may obtain such preliminary, temporary or permanent
mandatory or restraining injunctions, orders or decrees as may be necessary to
protect the company against, or on account of, any breach by the Consultant of
the provisions contained in Sections 4, 9 or 10.
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(c) The Consultant further agrees that, upon termination of this
Agreement, whether voluntary or involuntary or with or without cause, the
Consultant shall notify any new employer, partner, associate or any other firm
or corporation with whom the Consultant shall become associated in any capacity
whatsoever of the provisions of this Section 10, and that the
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Company may give such notice to such firm, corporation or other person.
11. ASSIGNMENT AND DISCLOSURE OF INVENTIONS.
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(a) From and after the date the Consultant first became employed with
the Company, the Consultant hereby agrees to promptly disclose in confidence to
the Company all inventions, improvements, designs, original works of authorship,
formulas, processes, compositions of matter, computer software programs,
databases, mask works, and trade secrets ("Inventions"), whether or not
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patentable, copyrightable or protectible as trade secrets, that are made or
conceived or first reduced to practice or created by the Consultant, either
alone or jointly with others, during the period of the Consultant's employment
and in the course of performing assigned tasks for the Company.
(b) The Consultant hereby acknowledges that copyrightable works
prepared by the Consultant within the scope of the Consultant's employment are
"works for hire" under the Copyright Act and that the Company will be considered
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the author thereof. The Consultant hereby agrees that all Inventions that (a)
are developed using equipment, supplies, facilities or trade secrets of the
Company, (b) result from work performed by the Consultant for the Company, or
(c) relate to the Company's business or current or anticipated research and
development, will be the sole and exclusive property of the Company and are
hereby assigned by the Consultant to the Company.
12. SEVERABILITY. The Company and the Consultant recognize that the
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laws and public policies of the Commonwealth of Virginia are subject to varying
interpretations and change. It is the intention of the Company and of the
Consultant that the provisions of this Agreement shall be enforced to the
fullest extent permissible under the laws and public policies of the
Commonwealth of Virginia, but that the unenforceability (to the modification to
conform to such laws or public policies) of any provision or provisions hereof
shall not render unenforceable, or impair, the remainder of this Agreement.
Accordingly, if any provisions of this Agreement shall be determined to be
invalid or unenforceable, either in whole or in part, this Agreement shall be
deemed amended to delete or modify, as necessary, the offending provision or
provisions and to alter the balance of this Agreement in order to render it
valid and enforceable.
13. ASSIGNMENT. Neither the rights nor obligations under this
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Agreement may be assigned by either party, in whole or in part, by operation of
law or otherwise, except that it shall be binding upon and inure to the benefit
of any successor of the Company and its subsidiaries and affiliates, whether by
merger, reorganization or otherwise, or any purchaser of all or substantially
all of the assets of the Company.
14. NOTICES. Any notice expressly provided for under this Agreement
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shall be in writing, shall be given either manually or by mail and shall be
deemed sufficiently given when actually received by the party to be notified or
when mailed, if mailed by certified or registered mail, postage prepaid,
addressed to such party at their addresses as set forth below. Either party
may, by notice to the other party, given in the manner provided for herein,
change their address for receiving such notices.
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(a) If to the Company, to:
Template Software, Inc.
00000 Xxxxxxx Xxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxx 00000
Attn: President
with a copy to:
Hunton & Xxxxxxxx
0000 Xxxxxxxx Xxxxx, Xxxxx 0000
XxXxxx, Xxxxxxxx 00000
Attn: Xxxxxx X. Xxxxxx, Esquire
(b) If to the Consultant, to
Xxxxxx X. Xxxxxxxxxx
c/o Template Software, Inc.
00000 Xxxxxxx Xxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxx 00000
15. GOVERNING LAW. This Agreement shall be executed, construed and
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performed in accordance with the laws of the Commonwealth of Virginia without
reference to conflict of laws principles.
16. HEADINGS. The section headings contained in this Agreement are
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for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.
17. ENTIRE AGREEMENT, AMENDMENTS. This Agreement constitutes and
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embodies the entire agreement between the parties in connection with the subject
matter hereof and supersedes all prior and contemporaneous agreements and
understandings in connection with such subject matter. No covenant or condition
not expressed in this Agreement shall affect or be effective to interpret,
change or restrict this Agreement. In the event of a conflict or inconsistency
between the terms of this Agreement and the Company's policies regarding
employees, the terms of this Agreement shall supersede the conflicting or
inconsistent Company policies. No change, termination or attempted waiver of
any of the provisions of this Agreement shall be binding unless in writing
signed by the Consultant and on behalf of the Company by an officer thereunto
duly authorized by the Company's Board of Directors. No modification, waiver,
termination, rescission, discharge or cancellation of this Agreement shall
affect the right of any party to enforce any other provision or to exercise any
right or remedy in the event of any other default.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have executed this Agreement as
of the date first above written.
TEMPLATE SOFTWARE, INC.
By: /s/ E. Xxxxxxx Xxxxxx
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Name: E. Xxxxxxx Xxxxxx
Title: CEO
Date: 2/12/99
CONSULTANT
/s/ Xxxxxx X. Xxxxxxxxxx
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Xxxxxx X. Xxxxxxxxxx
Date: 2/12/99
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