Exhibit 10.13
EMPLOYMENT
AGREEMENT
THIS EMPLOYMENT
AGREEMENT (this “
Agreement ”) is made as of April 13, 2006,
by and among Solera, Inc., a Delawarecorporation (“
Employer ”), Solera Holdings, LLC, a Delaware limited
liability company and the sole stockholder of Employer (“
Solera Holdings ”), and Jack Pearlstein (“
Executive ”). Certain definitions are set forth in
Section 4 of this Agreement.
Employer and Executive desire to
enter into an agreement pursuant to which Employer will employ
Executive. In addition, as of the date hereof, Executive and Solera
Holdings will enter into a Securities Purchase Agreement (the
“ Securities Purchase Agreement ”) pursuant to
which Executive may purchase units in Solera Holdings subject to
the terms and conditions set forth therein.
NOW, THEREFORE, in consideration of
the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties to this Agreement hereby agree as
follows:
1.
Employment
.
Employer agrees
to employ Executive and Executive accepts such employment for the
period beginning as of the date hereof and ending upon his
Separation pursuant to Section 1(c) hereof (the “
Employment Period ”).
(a)
Position and
Duties .
(i)
During the
Employment Period, Executive shall serve as the Chief Financial
Officer of Employer and shall have the normal duties,
responsibilities and authority implied by such position, subject to
the power of the Board and Employer’s Chief Executive Officer
to expand or limit such duties, responsibilities and authority and
to override actions of the Chief Financial Officer.
(ii)
Executive shall
report to Employer’s Chief Executive Officer, and Executive
shall devote his reasonable efforts and his full business time and
attention to the business and affairs of Solera Holdings, Employer
and their Subsidiaries; provided that, subject to the succeeding
proviso, Executive shall not be restricted from serving on the
boards of directors of other companies (other than any companies
that are in any business that is competitive with any business of
Solera Holdings or its Subsidiaries) or purely philanthropic
organizations or participating in philanthropic activities
associated with such organizations, but, in each case, only to the
extent that such service or participation does not interfere with
Executive’s employment or duties hereunder; provided,
further, that Executive shall not serve on any board of directors
or similar governing body without the approval of the Board, which
approval shall not be unreasonably withheld.
(b)
Salary, Bonus
and Benefits . During the Employment
Period, Employer will pay Executive a base salary of $300,000 per
annum (the “ Annual Base Salary ”). During the
Employment Period, beginning with the fiscal year ending June 30,
2007 and for each fiscal year thereafter, Executive shall be
eligible for an annual bonus (“ Annual Bonus ”)
in an amount up to 75% of the Annual Base Salary then in effect
based upon the achievement by Solera Holdings,
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Employer and their
Subsidiaries of financial and other objectives set by
Employer’s Chief Executive Officer, subject to prior approval
by the Board. An Annual Bonus, if any, will be paid to Executive by
Employer 120 days after the end of the fiscal year to which such
Annual Bonus relates.
(c)
Separation
. The Employment
Period will continue until (i) Executive’s resignation,
Disability or death, or (ii) the Board decides to terminate
Executive’s employment with or without Cause. If
Executive’s employment is terminated by Employer without
Cause or by Executive with Good Reason after the first anniversary
of the date hereof, then during the 18-month period commencing on
the date of termination subject to extension pursuant to the
following sentence (the “ Severance Period ”),
Employer shall pay to Executive an aggregate amount equal to 150%
of his Annual Base Salary plus 75% of any Annual Bonus paid in
respect of the fiscal year preceding the date of termination,
payable in equal installments on the Employer’s regular
salary payment dates (the “ Wage Severance ”),
and Executive shall continue to participate in employee benefit
programs for senior executive employees (other than bonus and
incentive compensation plans) to the extent permitted under the
terms of such programs and under applicable law (collectively, the
“ Severance Payments ”). In addition, Employer
shall have the option, by delivering written notice to the
Executive within 12 months after the Separation to extend the
Severance Period for an additional six month or 12 month period
during which time Solera Holdings shall continue to make Severance
Payments to Executive at the same annual rate (pro rated as
applicable). Notwithstanding the foregoing, (A) Executive shall not
be entitled to receive any payments pursuant to this Section
1(c) unless Executive has executed and delivered to Employer a
general release in form and substance reasonably satisfactory to
Employer and which shall in no event contain restrictions on
Executive’s future employment broader than those contained in
this Agreement and (B) Executive shall be entitled to receive such
payments only so long as Executive has not breached the provisions
of Sections 2 or 3 hereof. Other than the payments,
if any, payable to Executive following a Separation pursuant to
this Section 1(c), Executive shall not be entitled to receive
any compensation from Employer or Solera Holdings following a
Separation.
2.
Confidential
Information .
(a)
Obligation to
Maintain Confidentiality . Executive acknowledges
that the information, observations and data (including trade
secrets) of a confidential, proprietary or secret nature obtained
by him during the course of his performance under this Agreement
concerning the business or affairs of Solera Holdings, Employer and
their respective Subsidiaries and Affiliates (“
Confidential Information ”) are the property of Solera
Holdings, Employer or such Subsidiaries and Affiliates, including
information concerning acquisition opportunities in or reasonably
related to Solera Holdings’ and Employer’s business or
industry of which Executive becomes aware during the Employment
Period. Therefore, Executive agrees that he will not disclose to
any unauthorized Person or use for his own account any Confidential
Information without the Board’s written consent, unless and
to the extent that the Confidential Information (i) becomes
generally known to and available for use by the public other than
as a result of Executive’s acts or omissions to act, (ii) was
known to Executive prior to Executive’s employment with
Employer, Solera Holdings or any of their Subsidiaries and
Affiliates (excluding information relating to Solera Holdings or
its Subsidiaries or to any acquisitions contemplated by Solera
Holdings or its Affiliates as of the date hereof), or (iii) is
required to be
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disclosed pursuant to any
applicable law or court order. Executive shall deliver to Solera
Holdings at a Separation, or at any other time Solera Holdings may
request, all memoranda, notes, plans, records, reports, computer
tapes, printouts and software and other documents and data (and
copies thereof) relating to the Confidential Information, Work
Product (as defined below) or the business of Solera Holdings,
Employer and their respective Subsidiaries and Affiliates
(including, without limitation, all acquisition prospects, lists
and contact information) which he may then possess or have under
his control.
(b)
Ownership of
Property . Executive acknowledges that
all discoveries, concepts, ideas, inventions, innovations,
improvements, developments, methods, processes, programs, designs,
analyses, drawings, reports, patent applications, copyrightable
work and mask work (whether or not including any confidential
information) and all registrations or applications related thereto,
all other proprietary information and all similar or related
information (whether or not patentable) that relate to Solera
Holdings’, Employer’s or any of their respective
Subsidiaries’ or Affiliates’ actual or anticipated
business, research and development, or existing or future products
or services and that are conceived, developed, contributed to,
made, or reduced to practice by Executive (either solely or jointly
with others) while employed by Solera Holdings, Employer or any of
their respective Subsidiaries or Affiliates (including any of the
foregoing that constitutes any proprietary information or records)
(“ Work Product ”) belong to Solera Holdings,
Employer or such Subsidiary or Affiliate and Executive hereby
assigns, and agrees to assign, all of the above Work Product to
Solera Holdings, Employer or to such Subsidiary or Affiliate. Any
copyrightable work prepared in whole or in part by Executive in the
course of his work for any of the foregoing entities shall be
deemed a “work made for hire” under the copyright laws,
and Solera Holdings, Employer or such Subsidiary or Affiliate shall
own all rights therein. To the extent that any such copyrightable
work is not a “work made for hire,” Executive hereby
assigns and agrees to assign to Solera Holdings, Employer or such
Subsidiary or Affiliate all right, title, and interest, including
without limitation, copyright in and to such copyrightable work.
Executive shall promptly disclose such Work Product and
copyrightable work to the Board and perform all actions reasonably
requested by the Board (whether during or after the Employment
Period) to establish and confirm Solera Holdings’,
Employer’s or such Subsidiary’s or Affiliate’s
ownership (including, without limitation, assignments, consents,
powers of attorney, and other instruments). Executive understands,
however, that there is no obligation being imposed on him to assign
to Solera Holdings or any Subsidiary or Affiliate, any invention
falling within the definition of Work Product for which no
equipment, supplies, facility, or trade secret information of
Solera Holdings or any of its Subsidiaries or Affiliates was used
and that was developed entirely on his own time, unless: (i)
such Work Product relates (A) to Solera Holdings’, or its
Subsidiaries’ or Affiliates’ businesses or (B) to their
actual or demonstrably anticipated research or development,
or (ii) the Work Product results from any work performed by him for
them under this Agreement. Executive has identified on the
signature page to this Agreement all Work Product that is or was
owned by him or was written, discovered, made, conceived or first
reduced to practice by him alone or jointly with another person
prior to his employment under this Agreement. If no such Work
Product is listed, Executive represents to Solera Holdings that he
does not now nor has he ever owned, nor has he made, any such Work
Product.
(c)
Third Party
Information . Executive understands that
Solera Holdings, Employer and their respective Subsidiaries and
Affiliates will receive from third parties
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confidential or proprietary
information (“ Third Party Information ”)
subject to a duty on Solera Holdings’, Employer’s and
their respective Subsidiaries and Affiliates’ part to
maintain the confidentiality of such information and to use it only
for certain limited purposes. During the Employment Period and
thereafter, and without in any way limiting the provisions of
Section 2(a) above, Executive will hold Third Party
Information in the strictest confidence and will not disclose to
anyone (other than personnel and consultants of Solera Holdings,
Employer or their respective Subsidiaries and Affiliates who need
to know such information in connection with their work for Solera
Holdings, Employer or their respective Subsidiaries and Affiliates)
or use, except in connection with his work for Solera Holdings,
Employer or their respective Subsidiaries and Affiliates, Third
Party Information unless expressly authorized by a member of the
Board in writing.
(d)
Use of
Information of Prior Employers . During the Employment
Period, Executive will not improperly use or disclose any
confidential information or trade secrets, if any, of any former
employers or any other Person to whom Executive has an obligation
of confidentiality, and will not bring onto the premises of Solera
Holdings, Employer or any of their respective Subsidiaries or
Affiliates any unpublished documents or any property belonging to
any former employer or any other Person to whom Executive has an
obligation of confidentiality unless consented to in writing by the
former employer or Person. Executive will use in the performance of
his duties only information which is (i) generally known and used
by persons with training and experience comparable to
Executive’s and which is (x) common knowledge in the industry
or (y) is otherwise legally in the public domain, (ii) is otherwise
provided or developed by Solera Holdings, Employer or any of their
respective Subsidiaries or Affiliates or (iii) in the case of
materials, property or information belonging to any former employer
or other Person to whom Executive has an obligation of
confidentiality, approved for such use in writing by such former
employer or Person.
3.
Restrictive
Covenants . Executive acknowledges that
in the course of his employment with Employer he will become
familiar with Solera Holdings’, Employer’s and their
respective Subsidiaries’ trade secrets and with other
confidential information concerning Solera Holdings, Employer and
such Subsidiaries and that his services will be of special, unique
and extraordinary value to Solera Holdings, Employer and such
Subsidiaries. Therefore, Executive agrees that:
(a)
Nonsolicitation
. During the
Employment Period and (x) if the Employment Period is terminated by
Solera Holdings or Employer without Cause or by Executive with Good
Reason, for one year thereafter (or if Executive is entitled to
Severance Payments pursuant to Section 1(c) and the
Severance Period extends beyond one year after the termination of
the Employment Period, for the length of the Severance Period), or
(y) for a period of two years thereafter if the Employment Period
is terminated by Executive, Solera Holdings or Employer for any
other reason, Executive shall not directly or indirectly through
another entity (i) induce or attempt to induce any employee of
Solera Holdings, Employer or their respect
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