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EXHIBIT 10.3
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of
the 26th day of June, 1998, by and between COMPDENT CORPORATION, a Delaware
corporation (the "Company") and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ (the "Employee").
I. STATEMENT OF BACKGROUND INFORMATION
The Employee has been an officer and a key employee of the Company and the
parties desire to ensure that the Employee's expertise, knowledge and experience
will continue to be available to the Company in providing full-service dental
benefits and offering network-based dental care, reduced fee-for-service, third
party administration and dental practice management (the "Business").
II. STATEMENT OF AGREEMENT
In consideration of the mutual covenants, promises and conditions set forth
in this Agreement, and for other good and valuable consideration, the parties
hereto hereby agree as follows:
1. Employment. The Company hereby employs Employee in the position of
President and Chief Operating Officer of the Company and/or such other
position(s) as determined by the Board of Directors or its designees and
consistent with the Employee's general area of experience, knowledge and
skill, and Employee hereby accepts such employment upon the terms and
conditions set forth in this Agreement. For purposes of Sections 6, 7 and 8
of this Agreement, "employment" shall mean any period of time during the
term hereof which the Company is paying the Employee salary or wages. By
execution of this Agreement, the parties hereby: (a) terminate, as of the
date hereof, that certain Employment Agreement between the Company and
Employee dated May 24, 1995 (the "Prior Employment Agreement") and (b)
acknowledge and agree that no provisions of the Prior Employment Agreement
shall survive the execution and delivery of this Agreement.
2. Duties of Employee. Employee agrees to perform and discharge the duties
which may be assigned to Employee from time to time by the Company's Board
of Directors or its designees and consistent with the Employee's general
area of experience, knowledge and skill. Employee also agrees to materially
comply with all of the Company's material policies, standards and
regulations and to follow the reasonable instructions and directives of
Employee's superiors within the Company, as promulgated by the Board of
Directors of the Company. Employee will devote her full professional and
business related time, skills and commercially reasonable efforts to the
Business and Employee will not, during the term of this Agreement, be
engaged (whether or not
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during normal business hours) in any other business or professional
activity (excluding reasonable and appropriate charitable activities),
whether or not such activity is pursued for gain, profit or other pecuniary
advantage without the prior written consent of the Board of Directors of
the Company, which consent will not be unreasonably withheld.
3. Term. The term of this Agreement will be for a period commencing on the
date hereof and expiring on the later of the fifth anniversary of such date
or, if there is a Change in Control (as defined herein) before such fifth
anniversary date, the date which is 25 months following any Change in
Control, subject to earlier termination as provided for in Section 4 below.
4. Termination.
(a) By the Company. Notwithstanding anything contained in Section 3 to
the contrary, the Company may terminate this Agreement and all of its
obligations hereunder immediately if any of the following events (any of
which shall constitute "cause" for purposes of this Agreement) occur:
(i) Employee (A) materially breaches any of the terms or conditions
set forth in Sections 6, 7 or 8 of this Agreement including, without
limitation, the failure to use commercially reasonable efforts in the
performance of duties assigned to the Employee on a full time basis, or (B)
materially breaches any of the other terms and conditions set forth in this
Agreement and fails to cure such breach within twenty days after Employee's
receipt from the Company of written notice of such breach, which notice
shall describe in reasonable detail the basis for the Company's belief that
Employee is in breach hereof;
(ii) Employee commits any act in bad faith materially detrimental to
the business or reputation of the Company;
(iii) Employee is convicted of any crime involving fraud, deceit or
moral turpitude or Employee intentionally engages in dishonest or illegal
activities that have a material adverse effect upon the business or
reputation of the Company; or
(iv) Employee dies or becomes mentally or physically incapacitated or
disabled so as to be unable to perform Employee's duties under this
Agreement. For purposes of this Agreement, Employee shall be deemed to be
mentally or physically incapacitated or disabled so as to be unable to
perform her duties if and to the extent he becomes permanently disabled
under the Company's long-term disability policy then in effect.
The Company may also terminate the Employee's employment, upon reasonable
written notice to the Employee, at any time subject to the fulfillment of
the Company's
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obligations under this Agreement and such termination by the Company for
any other reason shall be deemed termination "without cause."
(b) By Employee. The Employee may terminate this Agreement:
(i) if the Company materially breaches any of the terms or conditions
set forth in this Agreement and fails to cure its breach within twenty days
after its receipt from Employee of written notice of such breach, which
notice describes in reasonable detail Employee's belief that the Company is
in breach hereof;
(ii) for "good reason" (as herein defined) at any time during the
two-year period following a Change in Control upon written notice to the
Company; or
(iii) for any reason or for no reason during the 30-day period
beginning on the first anniversary of the consummation of a Change in
Control (as herein defined) of the Company.
The Employee may also resign and terminate her employment on reasonable
written notice at any time and such termination by Employee for any other
reason (other than as provided in Sections 4(b)(i) or (ii)) and in such
event, the Employee shall receive no severance benefits under this
Agreement as a result of such termination.
(c) Certain definitions.
(i) For purposes of this Agreement, "good reason" shall mean the
following:
(A) any diminution of the Employee's duties or a reassignment of
the Employee to a position not consistent with the Employee's
general area of knowledge, experience and skills, or the
assignment of substantial additional responsibilities to the
Employee;
(B) any diminution of the Employee's compensation or a material
diminution of the Employee's bonus, long-term incentives,
employee benefits or perquisites as in effect immediately
preceding the Change in Control;
(C) any relocation of Employee's principal place of employment to
more than 35 miles from the principal place of employment
immediately preceding the Change in Control;
(D) any material increase in Employee's travel obligations;
(E) any failure of any successors to the Company to assume this
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agreement; or
(F) any breach of this Agreement by the Company not cured within
ten days after its receipt of notice from Employee of such
breach (in the event of such a breach and a termination of
this Agreement following a Change in Control, such
termination shall be deemed to have occurred under this
Section 4(c)(i)(F) and not under Section 4(b)(i)).
(ii) For purposes of this Agreement, "Change in Control" shall mean
any of the following events:
(A) the direct or indirect beneficial ownership (within the
meaning of Section 13(d) of the Securities Exchange Act of
1934, as amended (the "Exchange Act") and Regulation 13D
thereof) of a majority of the outstanding common stock of
the Company is acquired or becomes held by any person or
group of persons (within the meaning of Section 13(d)(3) of
the Exchange Act);
(B) a change of stock ownership of the Company of a nature that
would be required to be reported in response to Item 6(e) of
Schedule 14A promulgated under the Exchange Act, and any
successor Item of a similar nature;
(C) the acquisition of beneficial ownership, directly or
indirectly, by any person (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) of securities of the
Company representing 25 percent or more of the voting power
of the then outstanding securities of the Company;
(D) the stockholders of the Company shall approve (provided,
however, if the transaction approved by the stockholders is
subsequently terminated, and the Employee is still employed
by the Company at the termination of the transaction, then
no "Change in Control" shall be deemed to have taken place):
(1) any consolidation, merger, share exchange or other
extraordinary transaction related to the Company where the
stockholders of the Company, immediately prior to the
consolidation, merger, share exchange or other extraordinary
transaction, would not, immediately after the consolidation,
merger, share exchange or other extraordinary transaction,
beneficially own (as such term is defined in Rule 13d-3
under the Exchange Act), directly or indirectly, shares
representing in the aggregate 50 percent of the
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voting securities of the corporation issuing cash or
securities in the consolidation, merger, share exchange or
other extraordinary transaction (or of its ultimate parent
corporation, if any), (2) any lease, exchange, mortgage or
other transfer (in one transaction or series of transactions
contemplated or arranged by any party as a single plan) of
all or substantially all of the assets of the Company and
its subsidiaries (taken as a whole), or (3) any plan or
proposal for the liquidation or dissolution of the Company;
or
(E) the following individuals cease for any reason to constitute
a majority of the number of directors then serving:
individuals who, on the date hereof, constitute the Board of
Directors and any new director (other than a director whose
initial assumption of office is in connection with an actual
or threatened election contest, including but not limited to
a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by
the Board of Directors or nomination for election by the
Company's stockholders was approved or recommended by a vote
of at least two-thirds of the directors then still in office
who either were directors on the date hereof or whose
appointment, election or nomination for election was
previously so approved or recommended.
(iii) For purposes of this Agreement, "termination of employment,"
"termination of Employee" and "termination of this Agreement" shall have
the same meaning unless otherwise agreed to in writing by the parties
hereto.
(d) Severance Payments.
(i) In the event of termination of the Employee by the Company without
cause or termination by Employee pursuant to Section 4(b)(i) hereof, the
Company shall: (A) pay to Employee an amount equal to two times the
Employee's annual salary in effect at the time of the termination (not
giving effect to any salary reduction giving rise to such termination) plus
two times the greater of (1) the average bonus received by the Employee for
the last three fiscal years (or such shorter time if Employee has been
employed by the Company for less than three years) or (2) the bonus earned
by Employee for the most recently ended fiscal year and (B) either continue
the Employee's health (medical and dental) insurance as provided in Section
5(c) for two years following the date of such termination to the extent
permitted under applicable law and the Company's group health insurance
policies or reimburse the Employee for her cost for comparable coverage to
the extent such coverage cannot be provided under such policies. Such
severance pay shall be payable in equal monthly installments over the
two-year period beginning on the date of termination of this Agreement and
shall be subject to tax withholding to the extent
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required under applicable law. Notwithstanding anything herein to the
contrary, the Company shall not be required to continue to provide Employee
with health benefits under this paragraph if Employee becomes entitled to
receive benefits substantially similar to those which Employee otherwise
would have been entitled to receive hereunder. This severance pay and
continuation of health benefits contemplated by this paragraph are agreed
by the parties hereto to be in full satisfaction and compromise of any
claim arising out of any termination of Employee's employment without cause
or pursuant to Section 4(b)(i).
(ii) Notwithstanding anything herein to the contrary, in the event of
termination of the Employee by the Company without cause within the
two-year period following a Change in Control or termination by Employee
under Section 4(b)(i), (ii) or (iii) of this Agreement, then in lieu of the
severance pay and benefit continuation provided in Section 4(d)(i) above,
the Company shall: (A) pay to Employee an amount equal to three times the
Employee's annual salary in effect at the time of the termination (not
giving effect to any salary reduction giving rise to such termination) plus
three times the greater of (1) the average bonus received by the Employee
for the three fiscal years preceding such termination (or such shorter time
if Employee has been employed by the Company for less than three years) or
(2) the bonus earned by Employee for the most recently ended fiscal year,
(B) either continue the Employee's health (medical and dental) insurance as
provided in Section 5(c) for three years following the date of such
termination to the extent permitted under applicable law and the Company's
group health insurance policies or reimburse the Employee for her cost for
comparable coverage to the extent such coverage cannot be provided under
such policies and (C) pay to Employee the prorated portion of the greater
of (1) the average bonus received by the Employee for the three fiscal
years preceding such termination (or such shorter time if Employee has been
employed by the Company for less than three years) or (2) the bonus earned
by Employee for the most recently ended fiscal year. Such severance pay
shall be payable in equal monthly installments over the three-year period
beginning on the date of termination of this Agreement and shall be subject
to tax withholding to the extent required under applicable law.
Notwithstanding anything herein to the contrary, the Company shall not be
required to continue to provide Employee with health benefits under this
paragraph if Employee becomes entitled to receive benefits substantially
similar to those which Employee otherwise would have been entitled to
receive hereunder. Notwithstanding anything herein to the contrary, the
Company shall not be required to pay any amount (the "Excess Amount") that,
upon advice of the Company's independent tax advisor or counsel, would be
in excess of 2.99 times Employee's Base Amount, as defined in Section
280G(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"),
and, therefore, would trigger the tax (the "Excise Tax") imposed by Section
4999 of the Code, unless Employee agrees to be bound by the noncompetition
provisions of Section 7 hereof for one additional year following the
termination. Payment of the Excess Amount shall be consideration for the
Employee agreeing to be bound by such noncompetition provision for such
additional year. Election by the Employee to receive the Excess Amount
shall be
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given in writing to the Company not later than five days after the date on
which the Company notifies Employee in writing that an Excess Amount may be
payable absent such agreement, and, upon receipt of such notice, the
Company shall be obligated to pay the Excess Amount to Employee.
(e) Gross-Up. If any payment or other benefit (a "Termination
Payment") received or to be received by Employee in connection with a
Change in Control event (whether or not this Agreement is terminated) or
Employee's termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company,
with any person whose actions result in a Change in Control event or with
any person affiliated with the Company or such person) is or will be
subject to the Excise Tax, and provided Employee agrees to be bound by the
noncompetition provisions of Section 7 as extended by Section 4(d)(ii)
and/or Section 4(f), the Company shall pay to Employee a Gross-Up Payment
(as herein defined) to the extent provided by Section 4(e)(i).
A Gross-Up Payment shall be payable pursuant to this Section 4(e) on
and subject to the following terms and conditions:
(i) At the time the applicable Termination Payment is made, an
additional amount (the "Gross-Up Payment") shall be paid by the Company
such that the net amount retained by Employee, after deduction of any
Excise Tax on such Termination Payment and any federal, state and local
income tax, employment tax and Excise Tax on the Gross-Up Payment, shall be
equal to the amount or value of such Termination Payment. For purposes of
determining whether any such Termination Payment will be subject to the
Excise Tax, all Termination Payments shall be treated as "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and all
"excess parachute payments" within the meaning of Section 280G(b)(1) of the
Code shall be treated as being subject to the Excise Tax, unless in the
opinion of tax counsel reasonably acceptable to Employee and selected by
the accounting firm which, immediately prior to the Change in Control
event, was the Company's independent auditors, such payments (in whole or
in part) do not constitute "parachute payments" within the meaning of
Section 280G of the Code or represent reasonable compensation for services
actually rendered in excess of the "base amount" allocable to such
reasonable compensation. The full amount of the Gross-Up Payment shall be
treated as being subject to the Excise Tax. The value of any non-cash
benefits or any deferred payment or benefit shall be determined in
accordance with the principles of Sections 280G(d)(3) and (4) of the Code.
(ii) For purposes of determining the amount of any Gross-Up Payment,
Employee shall be deemed to pay federal income taxes at the highest
marginal rate of federal income taxation in the calendar year in which the
applicable Termination Payment or Gross-Up Payment is made, and shall be
deemed to pay state and local income taxes at the highest marginal rates of
taxation in the state and locality of her residence on the date
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the applicable Termination Payment or Gross-Up Payment is made, net of
the maximum reduction in federal income taxes that could be obtained from
deduction of such state and local taxes.
(iii) If the Excise Tax or income tax payable with respect to a
Gross-Up Payment as finally determined exceeds the amount taken into
account or paid to Employee at the time the applicable Termination Payment
or Gross-Up Payment is made (including by reason of any payment the
existence or amount of which cannot be determined at the time of the
applicable Gross-Up Payment), the Company shall make an additional Gross-Up
Payment in respect of such excess (plus any interest payable by Employee
with respect to such excess) at the time that the amount of such excess is
finally determined.
(f) Continuation Bonus. Upon (i) the consummation of a Change in
Control, and (ii) Employee agreeing (A) to remain employed by the Company
until the first anniversary of the consummation of the Change in Control
and (B) to be bound by the noncompetition provisions of Section 7 of this
Agreement for the Extended Period (as herein defined) and to render
consulting services to the Company (up to 375 hours per year) for the
Extended Period, Employee shall be entitled to receive a single payment of
$750,000. Employee shall fulfill her obligations under this Section 4(f) by
notifying the Company in writing of her decision to be bound by the terms
of this Section 4(f). The Company shall pay amounts due under this Section
4(f) within five days of receipt of such notice from Employee. If
termination of this Agreement occurs prior to the third anniversary of a
Change in Control, the Extended Period shall be the three year period from
the date of termination of this Agreement or if termination of this
Agreement occurs after the third anniversary of a Change in Control, the
Extended Period shall be the period ending on the date this Agreement
terminates.
(g) Security Obligation. The Company shall establish and fund, not
later than 30 days prior to the consummation of a Change in Control, a
grantor trust in an amount sufficient to satisfy the Company's obligations
under Sections 4(d), (e) and (f). If the Company fails to fund such trust
within such thirty day period, the entire amount of the Company's severance
obligations to the Employee will accelerate and become immediately due and
payable.
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5. Compensation and Benefits.
(a) Annual Salary. For all services rendered by Employee under this
Agreement, the Company will pay Employee a base salary of at least two
hundred fifteen thousand dollars ($215,000) per annum in equal monthly
installments, or a greater amount as determined by the Board of Directors
of the Company.
(b) Annual Bonus Payment. Upon completion of each fiscal year and as
determined by the Board of Directors of the Company, Employee shall be
eligible to receive a bonus ("Bonus") in accordance with any bonus plan
then in effect for executives of the Company of equivalent position and
title, provided Employee is employed by the Company at the end of such
fiscal year. Notwithstanding anything herein to the contrary, Employee's
bonus for any fiscal year ending after a Change in Control shall not be
less than 30% of her base salary then in effect.
(c) Other Benefits. Employee will be entitled to such fringe benefits
as may be provided from time-to-time by the Company to its employees,
including, but not limited to, group health insurance, disability, dental,
retirement and any other fringe benefits now or hereafter provided by the
Company to its employees, if and when Employee meets the eligibility
requirements for any such benefit. The Company reserves the right to change
or discontinue any employee benefit plans or programs now being offered to
its employees; provided, however, that all benefits provided for employees
of the same position and status as Employee will be provided to Employee on
an equal basis.
(d) Business Expenses. Employee will be reimbursed for all reasonable
expenses incurred in the discharge of Employee's duties under this
Agreement pursuant to the Company's standard reimbursement policies.
(e) Vacation. Employee shall receive paid vacation annually in
accordance with the Company's practices for employees of the Company of the
same position and status as Employee.
(f) Car Allowance. Employee shall receive a car allowance of $800 per
month during the term of this Agreement. Employee otherwise shall bear all
expenses and liabilities with respect to such car.
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(g) Withholding. The Company will deduct and withhold from the
payments made to Employee under this Agreement, state and federal income
taxes, FICA and other amounts normally withheld from compensation due
employees.
6. Non-Disclosure and Use of Confidential Information. Employee recognizes and
acknowledges that the trade secrets and confidential information of the
Company (the "Proprietary Information"), as they may exist from
time-to-time, are valuable, special and unique assets of the Business.
Employee further acknowledges that access to such Proprietary Information
relating to the Business of the Company is essential to the performance of
Employee's duties under this Agreement. Therefore, in order to obtain
access to such Proprietary Information, Employee agrees that Employee will
not, in whole or in part, disclose such Proprietary Information to any
person, firm, corporation, association or any other entity for any reason
or purpose whatsoever, nor will Employee make use of any such information
for Employee's own purposes or for the benefit of any person, firm,
corporation, association or other entity (except the Company). For purposes
of this Agreement, the term "trade secrets" means the whole or any portion
of any scientific or technical or non-technical information, design,
process, procedure, formula, computer software product, documentation or
improvement relating to the Business which: (1) derives economic value,
actual or potential, from not being generally known to other persons who
can obtain economic value from its disclosure or use; and (2) is the
subject of efforts that are reasonable under the circumstances to maintain
its secrecy or confidentiality. The term "confidential information" means
any and all other data and information relating to the Business which: (1)
has value to the Company; (2) is not generally known by its competitors or
the public; and (3) is treated as confidential by the Company. The
provisions of this Section 6 will apply during Employee's employment by the
Company and, with respect to trade secrets, at any and all times thereafter
and, with respect to confidential information, for three years thereafter.
These restrictions will not apply to any Proprietary Information which: (i)
is in the public domain, provided that Employee was not responsible,
directly or indirectly, for such Proprietary Information entering the
public domain without the Company's consent; (ii) becomes known to
Employee, during the term of this Agreement, from a third party not known
to Employee to be under a confidential relationship with the Company; or
(iii) is required by law or governmental tribunal to be disclosed;
provided, however, that if Employee is legally compelled to disclose any
Proprietary Information, Employee will provide the Company with prompt
written notice of such legal compulsion so that the Company may seek a
protective order or other available remedy.
7. (a) Non-Competition Covenant. During the term of this Agreement and
for a period of two years following termination of this Agreement for
any reason, Employee will not, directly or indirectly, on Employee's
own behalf or in the service of or on behalf of any other individual
or entity, compete with the Company in the
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Business within the Geographical Area (as hereinafter defined);
provided, however, that the noncompetition period imposed under this
Section 7(a) shall not apply if the noncompetition period imposed
under Section 4(f) of this Agreement applies. The term "compete" means
to engage, directly or indirectly, on Employee's own behalf or in the
service of or on behalf of any other individual or entity, either as a
proprietor, employee, agent, independent contractor, consultant,
director, officer, partner or stockholder (other than a stockholder of
a corporation listed on a national securities exchange or whose stock
is regularly traded in the over-the-counter market, provided that
Employee at no time owns, directly or indirectly, in excess of five
percent of the outstanding stock of any class of any such corporation)
in providing management, executive, marketing, or other services. For
purposes of this Agreement, the term "Geographical Area" means those
areas in the United States and in foreign countries in which Employee
is or has engaged in providing or marketing Business products or
services as of the date of this Agreement. The Geographical Area
currently includes Alabama, Arkansas, Colorado, Florida, Georgia,
Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Mississippi,
Missouri, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania,
South Carolina, Tennessee, Texas, Virginia and West Virginia. The
Company may, from time to time and after giving Employee notice (but
only while the Employee is employed by the Company), amend this
Agreement to expand the Geographical Area to include additional areas
in which the Company may conduct the Business after the date hereof.
(b) Non-Interference. During the term of this Agreement and for a period
of two years following termination of this Agreement for any reason
(and during the Extended Period, if any), Employee will not, directly
or indirectly, on Employee's own behalf or in the service of or on
behalf of any other individual or entity, interfere with, disrupt, or
attempt to disrupt the past, present or prospective relationships,
contractual or otherwise, between the Company and any supplier,
consultant, or client of the Company with whom Employee had material
business contact during the two-year period ending on the date of the
termination of this Agreement. The term "prospective relationship" is
defined as any relationship where the Company has actively sought an
individual or entity as a prospective supplier, consultant, or client.
(c) Construction. The parties hereto agree that any judicial authority
construing all or any portion of this Section 7 or Section 8 below
will be empowered to sever any portion of the Geographical Area,
Business or time period, client base, prospective relationship or
prospect list or any prohibited business activity from the coverage of
such Section and to apply the provisions of such Section to the
remaining portion of the Geographical Area, Business or time period,
the client
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base or the prospective relationship or prospect list, or the
remaining business activities not so severed by such judicial
authority. In addition, it is the intent of the parties that the
judicial authority replace each such severed provision with a
provision as similar in terms to such severed provision as may be
possible and be legal, valid and enforceable. It is the intent of the
parties that Sections 7 and 8 be enforced to the maximum extent
permitted by law. In the event that any provision of either such
Section is determined not to be specifically enforceable, the Company
shall nevertheless be entitled to bring an action to seek to recover
monetary damages as a result of the breach of such provision by
Employee.
8. Non-Solicitation of Employees Covenant. Employee further agrees and
represents that during Employee's employment by the Company and for a
period of two years following any termination of this Agreement for
whatever reason (and during the Extended Period, if any), Employee will
not, directly or indirectly, on Employee's own behalf or in the service of,
or on behalf of any other individual or entity, divert or solicit, or
attempt to divert or solicit, to or for any individual or entity which is
engaged in providing Business services, any person employed by the Company
(a) who was employed by the Company during the two-year period ending on
the date of the termination of this Agreement and (b) with whom Employee
was familiar during the term of this Agreement, whether or not such
employee is a full-time employee or temporary employee of the Company
whether or not such employee is employed pursuant to a written agreement
and whether or not such employee is employed for a determined period or
at-will, except as agreed to by the Company.
9. Existing Restrictive Covenants. Employee represents and warrants that
Employee's employment with the Company does not and will not breach any
agreement which Employee has with any individual or entity to keep in
confidence confidential information or not to compete with any such
individual or entity. Employee will not disclose to the Company or use on
either of their behalf any confidential information of any other party
required to be kept confidential by Employee.
10. Return of Confidential Information. Employee acknowledges that as a result
of Employee's employment with the Company, Employee may come into the
possession and control of Proprietary Information, such as proprietary
documents, drawings, specifications, manuals, notes, computer programs, or
other proprietary material. Employee acknowledges, warrants and agrees that
Employee will return to the Company all such items and any copies or
excerpts thereof, and any other properties, client lists, client contracts,
files or documents obtained as a result of Employee's employment with the
Company, immediately upon the termination of Employee's employment with the
Company.
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11. Remedies. Employee agrees and acknowledges that the violation of any of the
covenants or agreements contained in Sections 6, 7, 8, 9 and 10 of this
Agreement would cause irreparable injury to the Company, that the remedy at
law for any such violation or threatened violation thereof would be
inadequate, and that the Company will be entitled, in addition to any other
remedy, to temporary and permanent injunctive or other equitable relief
without the necessity of proving actual damages including, without
limitation, the right to terminate all payments under this Agreement.
Sections 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, and 17 of this
Agreement, shall survive termination of the Employee's employment under
this Agreement.
12. Notices. Any notice or communication under this Agreement will be in
writing and sent by registered or certified mail addressed to the
respective parties as follows:
If to the Company: If to the Employee:
CompDent Corporation ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇
13. Severability. Subject to the application of Section 7(c) to the
interpretation of Sections 7 and 8, in case one or more of the provisions
contained in this Agreement is for any reason held to be invalid, illegal
or unenforceable in any respect, the same will not affect any other
provision in this Agreement, and this Agreement will be construed as if
such invalid or illegal or unenforceable provision had never been contained
therein. It is the intent of the parties that this Agreement be enforced to
the maximum extent permitted by law.
14. Entire Agreement. This Agreement embodies the entire agreement of the
parties relating to the subject matter hereof and supersedes all prior
agreements, oral or written, regarding such subject matter. Except as
otherwise provided in Section 7(a) of this Agreement, no amendment or
modification of this Agreement will be valid or binding upon the parties
unless made in writing and signed by the parties.
15. Binding Effect. This Agreement will be binding upon the parties and their
respective heirs, representatives, successors, transferees and permitted
assigns, as applicable.
16. Assignment. This Agreement is one for personal services and is not
assignable by Employee. The Company may assign this Agreement to any of its
affiliates; provided that the Company shall remain liable for the
obligations of its affiliates under this Agreement.
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17. Governing Law. This Agreement is entered into and will be interpreted and
enforced pursuant to the laws of the State of Delaware. The parties hereto
hereby agree that the appropriate forum and venue for any disputes between
any of the parties hereto arising out of this Agreement shall be any
federal court in the State of Delaware and each of the parties hereto
hereby submits to the personal jurisdiction of any such court. The
foregoing shall not limit the rights of any party to obtain execution of
judgment in any other jurisdiction. The parties further agree, to the
extent permitted by law, that a final and unappealable judgment against
either of them in any action or proceeding contemplated above shall be
conclusive and may be enforced in any other jurisdiction within or outside
the United States by suit on the judgment, a certified or exemplified copy
of which shall be conclusive evidence of the fact and amount of such
judgment.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.
COMPDENT CORPORATION ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------ -----------------------------------
Title: CEO & Chairman
---------------------------
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