Exhibit 10.17
AGREEMENT
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PARTIES:
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Northwest Pipe
Company
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5721 Columbia
Way
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Suite
200
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Vancouver, WA
98661
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William R.
Tagmyer
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1415 Horseshoe
Curve
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Lake Oswego, OR
97034
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EFFECTIVE DATE:
November 14, 2000 (As Amended
December 31, 2008)
Company desires to retain the
services of Executive, and Executive desires to continue to provide
his services, upon the terms and conditions set forth in this
Agreement. Therefore, in exchange for the mutual promises set forth
below, the parties agree as follows:
ARTICLE 1
DEFINITIONS
1.1 “Base Salary”
means regular cash compensation paid on a periodic basis exclusive
of benefits, bonuses or incentive payments.
1.2 “Board” means
the Board of Directors of Company.
1.3 “Cause” means
(a) Executive’s willful participation in any illegal
conduct which is materially and demonstrably injurious to the
Company, or (b) Executive’s breach of the provisions of
either Section 5.2 or Section 5.3 of this Agreement.
For the purpose of this Section 1.3, no act, or failure to
act, on Executive’s part shall be considered
“willful” unless done, or omitted to be done, in
knowing bad faith and without reasonable belief that the action or
omission was in, or not opposed to, the best interests of the
Company. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board or based upon
the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by Executive in good
faith and in the best interests of the corporation.
1.4 “Confidential
Information” Company has researched, compiled and
developed certain proprietary data, including, but not limited to
customer information, trade secrets, and other information which is
not generally disclosed by Company to the public. For the purpose
of this Agreement, Confidential Information means all proprietary
data that has been researched, compiled, developed and/or
maintained by Company, and which is not generally known within the
industry. Confidential Information includes information, ideas,
knowledge, data, or know-how related to products, processes,
software, designs, formulae, tests, research, business and/or
marketing plans and strategies, costs, profits, pricing, personnel
and financial information, capitalization and other corporate data
and information, and information about or obtained from customers,
authors, suppliers, consultants, licenses, or
affiliates.
1 – AGREEMENT
1.5 “Disability”
means the inability of Executive to perform his duties under this
Agreement, with or without reasonable accommodation, because of
physical or mental incapacity for a continuous period of 180
days.
ARTICLE 2
EMPLOYMENT, DUTIES AND
TERM
2.1 Employment . Company
employs Executive, and Executive accepts employment with Company
for a period commencing on the Effective Date and continuing
through December 31, 2010 (the “Employment
Period”). For the purpose of this Agreement, the phrase
“the first three years of the Employment Period” shall
include the remainder of the calendar year 2000 and the entire
calendar years 2001, 2002 and 2003.
2.2 Duties . During the
Employment Period, Executive shall make himself reasonably
available to Company from time to time to perform such part-time
duties as may be assigned to him by Company, provided that such
part-time duties are reasonably consistent with Executive’s
education, experience and background. Further, Executive shall
comply at all times with Company’s policies and procedures to
the extent they are not inconsistent with the provisions of this
Agreement.
2.3 Term . This Agreement
shall commence on the Effective Date and shall continue in effect
until December 31, 2010, unless earlier terminated in
accordance with the provisions of Article 6.
ARTICLE 3
COMPENSATION AND
EXPENSES
3.1 Base Salary . During the
first three years of the Employment Period, Company shall pay
Executive an annual Base Salary of $350,000. During the next
succeeding seven years of the Employment Period, Company shall pay
Executive an annual Base Salary of $150,000.
3.2 Bonus . During the first
three years of the Employment Period, Executive shall be eligible
for an annual bonus in the amount determined by the Board in its
sole discretion.
3.3 Fringe Benefits . During
the first three years of the Employment Period, Executive shall be
entitled to such fringe benefits ( e.g. , automobile or
automobile allowance, health insurance, life insurance, club dues,
401K) as are available to him immediately before the effective date
of this Agreement.
3.4 Business Expenses .
Company shall, in accordance with, and to the extent of, its
policies in effect from time to time, bear all ordinary and
necessary business expenses reasonably incurred by Executive in
performing his duties during the Employment Period, provided that
Executive accounts promptly for such expenses to Company in the
manner prescribed from time to time by Company.
2 – AGREEMENT
ARTICLE 4
CONFLICT OF
INTEREST
During the term of this Agreement,
Executive will engage in no activity or employment which may
conflict with the interest of Company, and he will comply with
Company’s policies and guidelines pertaining to business
conduct and ethics.
ARTICLE 5
PROPRIETARY RIGHTS
5.1 Confidential Information
. Executive shall not use or disclose Confidential Information, in
any form, for any purpose, except in the course of
Executive’s employment with Company. Executive acknowledges
that he will obtain no right, title or interest in the Confidential
Information, and that the Confidential Information shall remain the
sole property of Company. Executive shall return all Confidential
Information, including all copies in any form, to Company
immediately upon termination of this Agreement.
5.2 Non-solicitation . During
the period commencing on the Effective Date of this Agreement and
extending until the later of (i) the date that is one year
after the date of termination of this Agreement, or (ii) the
date that is one year after the last payment is made to Executive
pursuant to this Agreement, Executive shall not directly or
indirectly (a) solicit business from any person or entity
which then is or was a Company customer, client or prospect during
the 60 months prior to the date of termination; (b) induce any
such person or entity to cease or reduce their business
relationship with Company; (c) induce any person to leave the
employment of Company; or (d) hire or use the services of any
Company employee without Company’s prior written consent.
Executive will not aid others in doing anything Executive is
prohibited from doing under this Section 5.2, whether as an
employee, officer, director, shareholder, partner, consultant or
otherwise.
For purposes of this
Section 5.2, the term “solicit” includes without
limitation (i) responding to requests for proposals and
invitations for bids, (ii) initiating contacts with customers,
clients, or prospects of Company for the purpose of advising them
that Executive is no longer employed by or consults for Company and
is available for work which is competitive with the services
offered by Company, and (iii) participating in joint ventures
or acting as a consultant or subcontractor or employee of others
who directly solicit business is prohibited by this Agreement. The
term “Company employee” includes any then current
employee of Company or any person who has left the employ of
Company