Exhibit 10.23
EMPLOYMENT AGREEMENT
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THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into this
1st day of September, 2000, by and between OSI SYSTEMS, INC. ("Company"), a
California corporation, and XXXX XXXXX ("Employee"), with reference to the
following facts:
A. Employee has been serving Company as Chief Financial Officer in a
satisfactory and capable manner pursuant to an oral agreement between Employee
and Company.
B. Company has requested that Employee enter into a written
employment agreement with Company with respect to matters relating to continued
employment with Company, and Employee has agreed to do so, upon the terms and
conditions set forth herein.
NOW, THEREFORE, in consideration of the terms and conditions and the
mutual agreements and covenants set forth herein, the parties hereto agree as
follows:
1. SCOPE OF EMPLOYMENT.
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1.1 Capacity. Company hereby continues to employ Employee and
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Employee hereby accepts continued employment as Chief Financial Officer of
Company. Employee shall report to the Chief Executive Officer of Company and
perform the services and duties customarily incident to such office and as
otherwise decided upon by the Chief Executive Officer or the Board of Directors.
1.2 Devotion of Services. Employee shall devote his entire
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productive time, ability and attention exclusively to the business of Company
during the term of this Agreement, except for passive investments, charitable
and non-profit enterprises and any other business investments which do not
interfere with his duties hereunder and which are not competitive with
Employer's activities (except as the owner of less than 2% of the issued and
outstanding capital stock of a publicly traded corporation). Employee shall
perform and discharge well and faithfully those duties assigned him by Company.
Employee shall perform his services under this Agreement in Los Angeles County,
California, or such other location as is acceptable to Employee.
2. TERM. Subject to Section 6 herein, the term of this Agreement
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shall commence as of the date of this Agreement and shall continue and remain in
full force and effect for a period of three (3) years. However, in the event
that Company thereafter continues to employ Employee, this Agreement shall be
deemed automatically renewed upon the same terms and conditions set forth herein
except (a) that the parties may mutually agree to revise any of the terms
set forth herein, and (b) the employment relationship will be on an "at will"
basis, which means that, subject to Section 6.4 herein, either Company or
Employee may elect to terminate the employment relationship at any time for any
reason whatsoever, with or without cause. Employee acknowledges that no
representation has been made by Company as to any minimum or specified term or
length of employment following the term set forth above.
3. COMPENSATION.
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3.1 Salary and Bonus. In consideration of the services to be
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rendered by Employee hereunder, including without limitation any services
rendered as an officer or director of Company or any subsidiary or affiliate
thereof, during the term of this Agreement Company shall pay to Employee the
following:
(a) A salary in the amount of $260,000.00 per annum, which
salary shall be reviewed no less frequent than annually by the Company. The
Company may increase Employee's salary but, in no event, may Employee's salary
be reduced during the term of this Agreement.
(b) The Company presently intends to continue its policy of
establishing a fiscal year end bonus pool for members of management of Company
and/or its subsidiaries, which may be up to ten percent (10%) of the Company's
net income before taxes. At the sole discretion of the Board of Directors,
Employee may be entitled to participate therein.
(c) All payments to Employee shall be subject to the regular
withholding requirements of all appropriate governmental taxing authorities.
(d) If the Company's Board of Directors and/or any committee
thereof grants options to senior members of management of the Company and/or its
subsidiaries, the Board of Directors and/or such committee shall consider in
good faith granting a reasonable amount of options to Employee.
3.2 Other Benefits. Employee shall be entitled to participate in
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any medical and insurance plan which Company is presently providing or may
provide to its senior executives. Employee acknowledges that the terms of such
plans may change from time to time. Furthermore, Employee shall be entitled to
receive the same automobile, life insurance policy and all other benefits which
he presently is receiving.
3.3 Expenses. Company will advance to or reimburse Employee for
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all reasonable travel and entertainment required by Company and other reasonable
expenses incurred by Employee in connection with the performance of his services
under this
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Agreement in accordance with Company policy as established from time to time.
4. INVENTIONS.
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4.1 Right to Inventions. Employee agrees that any discoveries,
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inventions or improvements of whatever nature (collectively "Inventions") made
or conceived by Employee, solely or jointly with others, during the term of his
employment with Company, that are made with Company's equipment, supplies,
facilities, trade secrets or time; or that relate, at the time of conception of
or reduction to practice, to the business of Company or Company's actual or
demonstrably anticipated research or development; or that result from any work
performed by Employee for Company, shall belong to Company. Employee also
agrees that Company shall have the right to keep any such Inventions as trade
secrets, if Company so chooses. In order to permit Company to claim rights to
which it may be entitled, Employee agrees to disclose to Company in confidence
all Inventions that Employee makes during the course of his employment and all
patent applications filed by Employee within three (3) years after termination
of his employment. Employee shall (a) assist Company in obtaining patents on
all Inventions deemed patentable by Company in the United States and in all
foreign countries and (b) execute all documents and do all things necessary to
obtain letters patent to vest Company with full and extensive titles thereto and
to protect the same against infringement by others. For the purposes of this
Agreement, an Invention is deemed to have been made during the period of
Employee's employment if the Invention was conceived or first actually reduced
to practice during that period, and Employee agrees that any patent application
filed within three (3) years after termination of his employment with the
Company shall be presumed to relate to an Invention made during the term of
Employee's employment unless Employee can provide evidence to the contrary.
4.2 Assignment of Inventions and Patents. In furtherance of, and
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not in contravention, limitation and/or in place of, the provisions of Section
4.1 above, Company hereby notifies Employee of California Labor Code Section
2870, which provides:
"Any provision in an employment agreement which provides
that an employee shall assign or offer to assign any of his or
her rights in an invention to his or her employer shall not apply
to an invention for which no equipment, supplies, facility, or
trade secret information of the employer was used and which was
developed entirely on the employee's own time, and (a) which does
not relate (1) directly or indirectly to the business of the
employer or (2) to the employer's actual
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or demonstrably anticipated research or development, or (b) which
does not result from any work performed by the employee for the
employer. Any provision which purports to apply to such an
invention is to that extent against the public policy of this
state and is to that extent void and unenforceable."
Employee acknowledges that he has been notified by the Company of this
law, and understands that this Agreement does not apply to Inventions which are
otherwise fully protected under the provisions of said Labor Code Section 2870.
Therefore, Employee agrees to promptly disclose in writing to the Company all
Inventions, whether Employee personally considers them patentable or not, which
Employee alone, or with others, conceives or makes during his employment with
Company or as is otherwise required and set forth under Section 4.1 above.
Company shall hold said information in strict confidence to determine the
applicability of California Labor Code Section 2870 to said Invention and, to
the extent said Section 2870 does not apply, Employee hereby assigns and agrees
to assign all his right, title and interest in and to those Inventions which
relate to business of the Company and Employee agrees not to disclose any of
these Inventions to others without the prior written express consent of Company.
Employee agrees to notify Company in writing prior to making any disclosure or
performing any work during the term of his employment with Company which may
conflict with any proprietary rights or technical know-how claimed by Employee
as his property. In the event Employee fails to give Company notice of such
conflict, Employee agrees that Employee shall have no further right or claim
with respect to any such conflicting proprietary rights or technical know-how.
5. CONFIDENTIALITY.
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5.1 Restrictions on Use of Trade Secrets and Records. During the
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term of his employment, Employee will have access to and become acquainted with
various trade secrets of Company, consisting of formulas, patterns, devices,
secret Inventions, processes, compilations of information, records and
specifications (collectively "Trade Secrets"), all of which are owned by Company
and used in the operation of Company's business. Additionally, Employee will
have access to and may become acquainted with various files, records, customer
lists, documents, drawings, specifications, equipment and similar items relating
to the business of Company (collectively "Confidential Information"). All such
Trade Secrets and Confidential Information, whether they are designed, conceived
or prepared by Employee or come into Employee's possession or knowledge in any
other way, are and shall remain the exclusive property of Company and shall not
be removed from the premises of Company under any circumstances whatsoever
without the prior written consent of Company. Employee promises
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and agrees that he will not use for himself or for others, or divulge or
disclose to any other person or entity, directly or indirectly, either during
the term of his employment by Company or at any time thereafter, for his own
benefit or for the benefit of any other person or entity or for any reason
whatsoever, any of the Trade Secrets or Confidential Information described
herein, which he may conceive, develop, obtain or learn about during or as a
result of his employment by Company unless specifically authorized to do so in
writing by Company.
5.2 Non-Interference. Employee recognizes that Company has
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invested substantial effort in assembling its present employees and in
developing its customer base. As a result, and particularly because of Company's
many types of confidential business information, Employee understands that any
solicitation of a customer or employee of Company, in an effort to get them to
change business affiliations, would presumably involve a misuse of Company's
confidences, Trade Secrets and Confidential Information. Employee therefore
agrees that, for a period of one (1) year from the later of the date of
termination of Employee's employment with Company for any reason whatsoever or
the receipt by Employee of any compensation paid to Employee by Company,
Employee will not influence, or attempt to influence, existing employees or
customers of Company in an attempt to divert, either directly or indirectly,
their services or business from Company.
6. TERMINATION OF AGREEMENT.
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6.1 Termination by Company. Company may terminate Employee's
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employment hereunder at any time for cause without payment of severance or
similar benefits. For purposes of this Section 6.1, "cause" shall mean the
following events: (a) any willful breach of duty by Employee in the course of
his employment, (b) the breach of any provision of this Agreement or any
misrepresentation by Employee hereunder, (c) misconduct, neglect or negligence
in the performance of Employee's duties and obligations, (d) disloyal,
dishonest, willful misconduct, illegal, immoral or unethical conduct by
Employee, (e) such carelessness or inefficiency in the performance of his duties
that Employee is unfit to continue in the service of Company, (f) failure of
Employee to comply with the policies or directives of Company and/or failure to
take direction from Company's Board of Directors, or (g) such other conduct
which is substantially detrimental to the best interests of Company. Any such
termination shall become effective upon delivery of written notice to Employee.
6.2 Termination by Employee. Employee may terminate his
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employment hereunder at any time for cause. For purposes of this Section 6.2,
"cause" shall mean the breach of any provision of this Agreement by Company
which is not cured within thirty (30) days after Employee delivers written
notice to Company
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describing such breach. If the breach is not so cured within such thirty (30)
days after delivery of such notice, the termination of employment shall become
effective after the expiration of such cure period.
6.3 Death or Disability. Employee's employment with Company
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shall cease upon the date of his death. In the event Employee becomes physically
or mentally disabled so as to become unable for more than one hundred eighty
(180) days in the aggregate in any twelve (12) month period to perform his
duties on a full-time basis with reasonable accommodations, Company may, at its
sole discretion, terminate this Agreement and Employee's employment.
6.4 Termination Following Automatic Renewal. In the event that
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this Agreement is automatically renewed pursuant to Paragraph 2 herein, either
Company or Employee may terminate Employee's employment hereunder at any time
and for any reason whatsoever, with or without cause, upon thirty (30) days
prior written notice delivered to the other party.
6.5 Effect of Termination. Upon the termination of Employee's
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employment hereunder or the expiration or termination of the Agreement, (a)
Company shall pay Employee all compensation accrued and outstanding as of the
date of such termination or expiration, and (b) notwithstanding anything to the
contrary contained herein, the rights and obligations of each party under
Paragraphs 4, 5 and 8 herein shall survive such termination or expiration.
Notwithstanding anything to the contrary contained in this Agreement if, prior
to the end of the three (3) year term, Employer terminates this Agreement
without cause, Employee shall continue to be entitled to receive all of the
compensation and other benefits provided for in Paragraph 3 for the remainder of
said three (3) year term without any deduction or offset for any compensation
earned or received by Employee from any other sources.
7. EMPLOYEE'S REPRESENTATIONS. As an inducement for Company to
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execute this Agreement, Employee represents and warrants to Company that the
negotiation, execution and delivery of this Agreement by Employee together with
the performance of his obligations hereunder does not breach or give rise to a
breach under any employment, confidentiality, non-disclosure, non-competition or
any other agreement, written or oral, to which Employee is a party.
8. EQUITABLE REMEDIES.
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8.1 Injunctive Relief. Employee acknowledges and agrees that
the covenants set forth in Paragraphs 4 and 5 herein are reasonable and
necessary for protection of Company's business interests, that irreparable
injury will result to Company if
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Employee breaches any of the terms of said covenants and that, in the event of
Employee's actual or threatened breach of said covenants, Company will have no
adequate remedy at law. Employee accordingly agrees that in the event of actual
or threatened breach of any of such covenants, Company shall be entitled to
immediate injunctive and other equitable relief, without bond and without the
necessity of showing actual monetary damages. Nothing contained herein shall be
construed as prohibiting Company from pursuing any other remedies available to
it for such breach or threatened breach, including the recovering of any damages
which it is able to prove. Each of the covenants in Paragraphs 4 and 5 shall be
construed as independent of any other covenants or provisions of this Agreement.
In the event of any judicial determination that any of the covenants set forth
in Paragraphs 4 and 5 herein or any other provisions of the Agreement are not
fully enforceable, it is the intention and desire of the parties that the court
treat said covenants as having been modified to the extent deemed necessary by
the court to render them reasonable and enforceable and that the court enforce
them to such extent.
8.2 Specific Enforcement. Employee agrees and acknowledges that
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he is obligated under this Agreement to render services of a special, unique,
unusual, extraordinary and intellectual character, thereby giving this Agreement
peculiar value, so that the loss thereof could not be reasonable or adequately
compensated in damages in an action at law. Therefore, in addition to other
remedies provided by law, Company shall have the right, during the term of this
Agreement, to obtain specific performance hereof by Employee and to obtain
injunctive relief against the performance of service elsewhere by Employee
during the term of this Agreement.
9. GENERAL.
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9.1 Entire Agreement. This Agreement contains the entire
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understanding between the parties hereto and supersedes all other oral and
written agreements or understandings between them.
9.2 Amendment. This Agreement may not be modified, amended,
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altered or supplemented except by written agreement between Employee and
Company.
9.3 Counterparts. This Agreement may be executed in two (2) or
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more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.
9.4 Jurisdiction. Each party hereby consents to the exclusive
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jurisdiction of the state and federal courts sitting in Los Angeles County,
California, in any action on a claim arising out of, under or in connection with
this Agreement or the
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transactions contemplated by this Agreement. Each party further agrees that
personal jurisdiction over him may be effected by service of process by
registered or certified mail addressed as provided in Section 9.9 herein, and
that when so made shall be as if served upon him personally within the State of
California.
9.5 Expenses. In the event an action at law or in equity is
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required to enforce or interpret the terms and conditions of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees and costs in
addition to any other relief to which that party may be entitled.
9.6 Interpretation. The headings herein are inserted only as a
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matter of convenience and reference, and in no way define, limit or describe the
scope of this Agreement or the intent of any provisions thereof. No provision
of this document is to be interpreted for or against any party because that
party or party's legal representative drafted it.
9.7 Successors and Assigns. This Agreement shall be binding
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upon, and inure to the benefit of, the parties hereto and their heirs,
successors, assigns and personal representatives. As used herein, the successors
of Company shall include, but not be limited to, any successor by way of merger,
consolidation, sale of all or substantially all of its assets or similar
reorganization. In no event may Employee assign any rights or duties under this
Agreement.
9.8 Controlling Law; Severability. The validity and construction
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of this Agreement or of any of its provisions shall be determined under the laws
of the State of California. Should any provision of this Agreement be invalid
either due to the duration thereof or the scope of the prohibited activity, such
provision shall be limited by the court to the extent necessary to make it
enforceable and, if invalid for any other reason, such invalidity or
unenforceability shall not affect or limit the validity and enforceability of
the other provisions hereof.
9.9 Notices. Any notice required or permitted to be given under
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this Agreement shall be sufficient if in writing and if personally received by
the party to whom it is sent or delivered, or if sent by registered or certified
mail, postage prepaid, to Employee's residence in the case of notice to
Employee, or to its principal office if to Company. A notice is deemed received
or delivered on the earlier of the day received or three (3) days after being
sent by registered or certified mail in the manner described in this Section.
9.10 Waiver of Breach. The waiver by any party hereto of a breach
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of any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
OSI SYSTEMS, INC.
By:__________________________________
Xxxxxx Xxxxxx, President
______________________________________
XXXX XXXXX
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