EX-10.40
3
recruitagr.htm
RECRUITMENT AGREEMENT
TABLE OF CONTENTS
FOR
1. TERM..............................................1
2. CERTAIN DEFINITIONS...............................1
3. CHARGES AND EXPENSES..............................1
4. INVOICE AND PAYMENT...............................1
5. HIRING OF EMPLOYEES...............................1
6. TAXES.............................................2
7. CROSS INDEMNIFICATION.............................2
8. ALPHANET INDEMNIFICATION..........................2
9. LIMITATION OF LIABILITY...........................2
10. TERMINATION.......................................3
11. CONFIDENTIALITY...................................3
12. COMPLIANCE WITH LAWS..............................3
13. MEDIA RELEASES....................................3
14. RELATIONSHIP OF PARTIES...........................3
15. NO ASSIGNMENT.....................................4
16. REMEDIES..........................................4
17. SEVERABILITY......................................4
18. SURVIVAL OF TERMS.................................4
19. EDS BUSINESS PRACTICES............................4
20. WAIVER............................................4
21. NOTICES...........................................4
22. GOVERNING LAW.....................................5
23. ENTIRE AGREEMENT..................................6
i
LIST OF
EXHIBITS
EXHIBIT A:
EDS BUSINESS
PRACTICES
ii
THIS RECRUITMENT AGREEMENT (the "Agreement"), dated July 2, 2001, is between AlphaNet Solutions, Inc., a New Jersey
corporation ("AlphaNet"), and EDS Information Services L.L.C., a Delaware limited liability company ("EDS").
W I T N E S S E T H:
WHEREAS, EDS desires
to have the right to hire employees from AlphaNet who are providing services to ▇▇▇▇▇▇▇ ▇▇▇▇▇; and
WHEREAS, AlphaNet is willing to provide such employees to EDS in accordance with the terms and conditions set forth in this
Agreement;
NOW, THEREFORE, in consideration of the premises, and other good and valuable consideration received and to be received,
AlphaNet and EDS hereby agree as follows:
1. TERM.
| |
The
parties agree that the terms and conditions of this Agreement apply to the
recruitment of Employees by EDS. The term of this Agreement commences on the
Effective Date (as hereinafter defined), and the Agreement shall continue to be
in effect until terminated by either party as set forth in this Agreement. |
2. CERTAIN
DEFINITIONS.
| |
“Employee”
means those employees of AlphaNet serving ▇▇▇▇▇▇▇ Sachs within the Help Desk and
TOG who may be hired by EDS. “Purchase Order” means that document
issued by EDS and accepted by AlphaNet under which EDS acquires the right to
hire Employees. “Affiliate” means entities that are controlled by or
are under common control of Electronic Data Systems Corporation, parent
corporation to EDS |
3. CHARGES AND
EXPENSES.
| |
EDS
agrees to pay $13,500 per Employee hired under this Agreement with a minimum
payment of $405,000 for 30 employees. |
4. INVOICE AND
PAYMENT.
| |
AlphaNet
shall submit an invoice to EDS to receive payment under this Agreement no sooner
than 30 days after ▇▇▇▇▇▇▇ ▇▇▇▇▇ give notice to AlphaNet to terminate the
services agreement between AlphaNet and ▇▇▇▇▇▇▇ Sachs. EDS shall pay
AlphaNet’s invoice in full within thirty (30) days after receipt of same by
EDS. Periodic payments, if any, due to AlphaNet pursuant to this Agreement shall
be invoiced at the beginning of the period to which they apply. Payment for any
other services shall be invoiced as agreed upon by the parties or, in the
absence of an agreement, upon completion of such services. AlphaNet invoices
shall contain (i) AlphaNet’s name and invoice date, (ii) the specific
Purchase Order number, if applicable, (iii) description, price, and quantity of
the Employees hired, (iv) credits (if applicable), (v) name (where applicable),
title, phone number, and complete mailing address of responsible official to
whom payment is to be sent, and (vi) other substantiating documentation or
information as may be mutually agreed by EDS and AlphaNet . |
5. HIRING OF
EMPLOYEES.
| |
EDS
shall have the right to hire Employees within thirty (30) days after ▇▇▇▇▇▇▇
▇▇▇▇▇ gives notice to AlphaNet to terminate the services agreement between
AlphaNet and ▇▇▇▇▇▇▇ Sachs. |
1
| |
(a)
At EDS’ written request, AlphaNet shall provide Employee name, position
held, current salary and any other information reasonably requested by EDS and
shall make such Employee available for interview by EDS. |
| |
(b)
During the 30 days after ▇▇▇▇▇▇▇ ▇▇▇▇▇ gives notice to AlphaNet to terminate the
services agreement between AlphaNet and ▇▇▇▇▇▇▇ Sachs (hereinafter, the
“Effective Date”), unless otherwise agreed by EDS and AlphaNet,
AlphaNet shall not re-assign, re-deploy, offer future assignments or in any
other way interfere or compete with EDS’ right to hire Employees. AlphaNet,
however, may terminate an Employee for cause. |
| |
(c)
AlphaNet shall be free to reassign, redeploy or terminate for any reason
Employees not hired by EDS by the end of the thirty (30) days after the
Effective Date. |
| |
(d)
After a period of three months from the termination of this Agreement, Employees
not hired under this Agreement will be free to seek employment at EDS or its
affiliates without recourse, and EDS will not owe any fees or payments to
AlphaNet if it hires any such Employee. |
6. TAXES.
| |
(a)
Unless EDS provides evidence of exemption satisfactory to AlphaNet, EDS shall
pay or reimburse AlphaNet, where EDS is liable under applicable tax statute,
amounts equal to taxes which are imposed upon EDS’ recruitment of Employees
including federal excise taxes, or sales or use taxes; provided, however, EDS
shall not be obligated to pay or reimburse AlphaNet for any taxes attributable
to the recruitment of employees which are imposed on or measured by net or gross
income, capital, net worth, franchise, privilege, or similar assessments. |
| |
(b)
AlphaNet agrees to reasonably cooperate with EDS in the audit or minimization of
any applicable tax and shall make available to EDS, and any taxing authority,
all information, records, or documents relating to any audits or assessments
attributable to or resulting from the payment process under this Agreement, and
the filing of any tax returns or the contesting of any tax. |
| |
EDS
shall not be obligated to pay or reimburse AlphaNet for additions to taxes,
penalties, interest, fees, or other expenses or costs, if any, incurred by EDS
solely as a result of, or attributable to, (i) AlphaNet’s failure to verify
taxability of a purchase, (ii) AlphaNet’s failure to correctly calculate or
remit taxes in a timely manner, or (iii) AlphaNet’s negligence, misconduct
or failure to file properly any required returns or reports, or other required
documents. |
| |
(c)
Upon written notification by EDS and subsequent verification by AlphaNet,
AlphaNet shall reimburse or credit, as applicable, EDS in a timely manner, for
any and all taxes erroneously paid by EDS. |
| |
(d)
EDS shall provide AlphaNet with, and AlphaNet shall accept in good faith,
satisfactory resale, direct pay, or other exemption certificates, as applicable.
AlphaNet agrees to separately identify on the invoice the taxable and
non-taxable purchases, the types of tax and the taxing authorities. |
| |
(e)
If EDS or an Affiliate of EDS is required by law to make any deduction or to
withhold from any sum payable hereunder, then, subject to verification by
AlphaNet of the legitimacy of such deduction or withholding, the sum payable by
EDS or such Affiliate of EDS upon which the deduction is based shall be paid to
AlphaNet net of such deduction or withholding. EDS or such Affiliate of EDS
shall pay the applicable tax authorities any such required deduction or
withholding. |
7. CROSS-
INDEMNIFICATION.
| |
In
the event any act or omission of a party or its employees, servants, agents, or
representatives causes or results in (i) damage to or destruction of tangible
property of the other party or third parties, and/or (ii) death or injury to
persons including, but not limited to, employees or invitees of either party,
then such party shall indemnify, defend, and hold the other party harmless from
and against any and all claims, actions, damages, demands, liabilities, costs,
and expenses, including reasonable attorneys’ fees and expenses, resulting
therefrom. The indemnifying party shall pay or reimburse the other party
promptly for all such damage, destruction, death, or injury. |
2
8. ALPHANET INDEMNIFICATION.
| |
Subject
to EDS’ full compliance with all of its obligations under this Agreement,
including, without limitation, timely payment by EDS to AlphaNet of the sums
specificied in Paragraph 3 hereof, AlphaNet shall indemnify and hold current
AlphaNet Employees, EDS and its Affiliates, and ▇▇▇▇▇▇▇ ▇▇▇▇▇ and their
respective successors, officers, directors, employees, and agents harmless from
and against any and all actions, claims, losses, damages, liabilities, awards,
costs, and expenses (including legal fees) solely resulting from or arising out
of the transaction covered by this Agreement. Furthermore, AlphaNet shall
indemnify and hold harmless EDS and its Affiliates from and against any and all
actions, claims, losses, damages, liabilities, awards, costs and expenses
(including legal fees) relating to the conduct of parties other than EDS or its
Affiliates occurring before the Employees are hired by EDS. |
9. LIMITATION
OF LIABILITY.
| |
NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PURSUANT TO THIS AGREEMENT FOR ANY AMOUNTS
REPRESENTING LOSS OF PROFITS, LOSS OF BUSINESS OR INDIRECT,
CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES OF THE OTHER PARTY. THE FOREGOING
SHALL NOT LIMIT THE INDEMNIFICATION, DEFENSE AND HOLD HARMLESS
OBLIGATIONS SET FORTH IN THIS AGREEMENT. |
10.
TERMINATION.
| |
EDS
may terminate a Purchase Order, or any portion thereof, for any reason without
penalty upon written notice to AlphaNet; provided, however, that upon such
termination EDS will pay for Employees hired from AlphaNet to the date of
termination; and provided, further, that the operation of this paragraph shall
not serve to reduce the minimum payment owing by EDS to AlphaNet pursuant to the
provisions of Paragraph 3 hereof. |
11.
CONFIDENTIALITY.
| |
Each
party acknowledges that in the course of performance of its obligations pursuant
to this Agreement, it may obtain confidential and/or proprietary information of
the other party or its affiliates or customers. “Confidential
Information” includes: information relating to development plans, costs,
finances, marketing plans, equipment configurations, data, access or security
codes or procedures utilized or acquired, business opportunities, names of
customers, research, and development; proprietary software; the terms,
conditions and existence of this Agreement; the pricing provisions included
within or incorporated into this Agreement; any information designated as
confidential in writing or identified as confidential at the time of disclosure
if such disclosure is verbal or visual; and any copies of the prior categories
or excerpts included in other materials created by the recipient party. Each
party agrees that, for a period of two (2) years following its receipt of
Confidential Information from the other party or the other party’s
affiliates or customers, whether before or after the Effective Date, such
recipient party shall use the same means it uses to protect its own confidential
and proprietary information, but in any event not less than reasonable means to
prevent the disclosure and to protect the confidentiality of the Confidential
Information. Further, the recipient party shall only use the Confidential
Information for purposes of this Agreement, and shall not disclose the
Confidential Information without the prior written consent of the other party.
The foregoing shall not prevent either party from disclosing Confidential
Information which belongs to such party or is (i) already known by the recipient
party without an obligation of confidentiality, (ii) publicly known or becomes
publicly known through no unauthorized act of the recipient party, (iii)
rightfully received from a third party without obligation of confidentiality,
(iv) independently developed by the recipient party without use of the other
party’s Confidential Information, (v) disclosed without similar
restrictions by the owner of the Confidential Information to a third party
(other than an affiliate or customer of the party owning the Confidential
Information), (vi) approved by the party owning the Confidential Information, in
writing, for disclosure, or (vii) required to be disclosed pursuant to a
requirement of a governmental agency or law so long as the recipient party
provides the other party with timely prior written notice of such requirement. |
3
12. COMPLIANCE
WITH LAWS.
| |
In
the performance of this Agreement, AlphaNet and EDS shall comply with the
requirements of all applicable laws, ordinances, and regulations of the United
States or any state, country, or other governmental entity. In particular,
AlphaNet and EDS agree to comply with the United States Export Administration
Act, Executive Order No. 11246, as amended by Executive Order No. 11375, the
Vietnam Era Veterans Readjustment Assistance Act of 1974, the Rehabilitation Act
of 1973, the Immigration Reform and Control Act of 1986, and the Americans With
Disabilities Act. This Section incorporates by reference all provisions required
by such laws, orders, rules, regulations, and ordinances. |
13. MEDIA RELEASES.
| |
Except
for any announcement intended solely for internal distribution by AlphaNet or
any disclosure required by legal, accounting, or regulatory requirements, all
media releases, public announcements, or public disclosures (including, but not
limited to, promotional or marketing material) by AlphaNet or its employees or
agents relating to this Agreement or its subject matter, or including the name,
trade name, trade ▇▇▇▇, or symbol of EDS or any Affiliate of EDS, shall be
coordinated with and approved in writing by EDS prior to the release thereof.
AlphaNet shall not include the name, trade name, trade ▇▇▇▇, or symbol of EDS,
or any Affiliate of EDS, on a list of AlphaNet’s customers without
EDS’ express written consent. |
14.
RELATIONSHIP OF PARTIES.
| |
AlphaNet
is performing pursuant to this Agreement only as an independent contractor.
AlphaNet has the sole obligation to supervise, manage, contract, direct,
procure, perform or cause to be performed its obligations set forth in this
Agreement, except as otherwise agreed upon by the parties. Nothing set forth in
this Agreement shall be construed to create the relationship of principal and
agent between AlphaNet and EDS. AlphaNet shall not act or attempt to act or
represent itself, directly or by implication, as an agent of EDS or its
Affiliates or in any manner assume or create, or attempt to assume or create,
any obligation on behalf of, or in the name of, EDS or its Affiliates. |
15. NO
ASSIGNMENT.
| |
This
Agreement shall be binding on the parties and their respective successors in
interest and assigns, but neither party shall have the power to assign or
subcontract this Agreement without the prior written consent of the other. |
16. REMEDIES.
| |
The
remedies reserved by the parties to this Agreement shall be cumulative and
additional to any other remedies provided in law or equity. |
17.
SEVERABILITY.
| |
If,
but only to the extent that, any provision of this Agreement is declared or
found to be illegal, unenforceable, or void, then both parties shall be relieved
of all obligations arising under such provision, it being the intent and
agreement of the parties that this Agreement shall be deemed amended by
modifying such provision to the extent necessary to make it legal and
enforceable while preserving its intent. If that is not possible, another
provision that is legal and enforceable and achieves the same objective shall be
substituted. If the remainder of this Agreement is not affected by such
declaration or finding and is capable of substantial performance, then the
remainder shall be enforced to the extent permitted by law. |
18. SURVIVAL
OF TERMS.
| |
Termination
or expiration of this Agreement for any reason shall not release either party
from any liabilities or obligations which (i) are set forth in the Sections of
this Agreement entitled “Ownership of Work Product”, “Proprietary
Rights Indemnification”, “Cross Indemnification”,
“Limitation of Liability”, “Confidentiality”,
“Taxes”, and “Compliance with Laws, Regulations and
Policies”, or (ii) remain to be performed or by their nature would be
intended to be applicable following any such termination or expiration. |
4
19. EDS
BUSINESS PRACTICES.
| |
AlphaNet shall comply with the EDS Business Practices set forth in Exhibit A. |
20. WAIVER.
| |
Any
waiver of this Agreement or of any covenant, condition, or agreement to be
performed by a party under this Agreement shall (i) only be valid if the waiver
is in writing and signed by an authorized representative of the party against
which such waiver is sought to be enforced, and (ii) apply only to the specific
covenant, condition or agreement to be performed, the specific instance or
specific breach thereof and not to any other instance or breach thereof or
subsequent instance or breach. |
21. NOTICES.
| |
Wherever
one party is required or permitted to give notice to the other pursuant to this
Agreement, such notice shall be deemed given when delivered in hand, when mailed
by registered or certified mail, return receipt requested, postage prepaid, or
when sent by a third party courier service where receipt is verified by the
receiving party’s acknowledgment, and addressed as follows: |
| |
Electronic Data Systems Corporation
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attn: Manager, Contracts Administration |
| |
AlphaNet Solutions, Inc.
▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇, President & COO
Copy to General Counsel |
| |
Either
party may from time to time change its address for notification purposes by
giving the other party written notice of the new address and the date upon which
it will become effective; first class, postage prepaid, mail shall be acceptable
for provision of change of address notices. |
22. GOVERNING
LAW.
| |
THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL NOT BE GOVERNED
BY THE PROVISIONS OF THE 1980 UNITED NATIONS CONVENTION ON CONTRACTS FOR
THE INTERNATIONAL SALE OF GOODS. RATHER THESE RIGHTS AND OBLIGATIONS SHALL BE
GOVERNED BY THE LAWS, OTHER THAN CHOICE OF LAW RULES, OF THE STATE OF
NEW YORK. |
5
23. ENTIRE
AGREEMENT.
| |
This
Agreement, together with all attachments hereto, and all documents referenced
herein, each of which is incorporated herein for all purposes, represents the
entire agreement of the parties, and supersedes all prior agreements,
authorizations, negotiations, or proposals, with respect to the subject matter
of this Agreement. In the event of a conflict between the terms and conditions
of this Agreement and a Purchase Order, the Purchase Order shall be controlling
with respect to those transactions covered by that Purchase Order. The parties
agree that any other terms or conditions included in any quotes,
acknowledgments, confirmations, or other forms utilized or exchanged by the
parties shall not be incorporated herein or be binding unless expressly agreed
upon in writing by authorized representatives of the parties. |
IN WITNESS WHEREOF, AlphaNet and EDS have each caused this Agreement to be signed and delivered by its duly authorized
officer or representative as of the Effective Date.
EDS INFORMATION SERVICES L.L.C.
ALPHANET SOLUTIONS, INC.
By: /S/▇▇▇▇▇ ▇. ▇▇▇▇▇▇;
By: /S/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
Printed Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Printed Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Director, Global Strategic Development
Title: Pres. & COO
Date: 7/3/01
Date: 7/2/01
Fed. Tax ID #: ▇▇-▇▇▇▇▇▇▇
6
EXHIBIT A:
EDS BUSINESS
PRACTICES
EDS' suppliers have played a key role in our continuous growth and success. We sincerely appreciate your support. In order
to avoid any conflict of interest between our suppliers and EDS employees and to keep business relationships on a professional basis,
EDS has established and briefed its employees on the following business practices. Please review these business practices carefully
and give a copy of this Exhibit to any of your associates who have a need to know.
| | | 1. | EDS expects its suppliers to provide a
quality product or service for which they will be fairly paid. |
| | | 2. | In selecting suppliers,
EDS will test the market to assure quality of service and fairness of price. |
| | | 3. |
No EDS employee is to ask for anything of value from a supplier. Gifts from a
supplier such as tickets to athletic events, concerts or the theater, personal
travel, or any type of personal item are discouraged by our business practices. |
| | | 4. |
If any EDS employee is offered or accepts an item of value from a supplier, the
employee is to report it to the appropriate EDS management. |
| | | 5. |
If any EDS employee engages in any type of unethical behavior such as requesting
anything of value from a supplier, the supplier is requested to report the
incident to the Director of Purchasing or the General Counsel of EDS. |
| | | 6. |
Occasional meals during visits to a supplier’s facilities or a
customer’s location during which a supplier incurs normal and reasonable
marketing expenses are acceptable. The EDS employee is required to report such
meal expenses to their management. |
| | | EDS appreciates your cooperation in complying
with these business practices. |
A-1
