Exhibit 10.14
EMPLOYMENT AGREEMENT
P R E
A M B L E
This Employment Agreement defines the essential terms and
conditions of our employment
relationship with you. The subjects covered in this Agreement are
vitally important to you and to
the Company. Thus, you should read the document carefully and ask
any questions before
signing the Agreement. Given the importance of these matters to you
and the Company, you are
required to sign the Agreement as a condition of
employment.
This
EMPLOYMENT AGREEMENT, dated and effective this 31 st day of March,
2008 is entered into by and between Hillenbrand Industries, Inc.
(to be renamed Hill-Rom Holdings, Inc.) (“Company”) and
Jeffrey Kao (“Employee”).
W I T
N E S S E T H:
WHEREAS, the
Company and its affiliated entities are engaged in the healthcare
industry throughout the United States and abroad including, but not
limited to, the design, manufacture, sale, service and rental of
hospital beds and stretchers, hospital furniture, medical-related
architectural products, specialty sleep surfaces (including
therapeutic surfaces), air clearing devices, biomedical and asset
management services, as well as other medical-related accessories,
devices, products and services;
WHEREAS, the
Company is willing to employ Employee in an executive or managerial
position and Employee desires to be employed by the Company in such
capacity based upon the terms and conditions set forth in this
Agreement;
WHEREAS, in
the course of the employment contemplated under this Agreement and
as a continuation of Employee’s past employment with the
Company , if applicable, it will be necessary for Employee
to acquire and maintain knowledge of certain trade secrets and
other confidential and proprietary information regarding the
Company as well as any of its parent, subsidiary and/or affiliated
entities (hereinafter jointly referred to as the
“Companies”); and
WHEREAS, the
Company and Employee (collectively referred to as the
“Parties”) acknowledge and agree that the execution of
this Agreement is necessary to memorialize the terms and conditions
of their employment relationship as well as safeguard against the
unauthorized disclosure or use of the Company’s confidential
information and to otherwise preserve the goodwill and ongoing
business value of the Company;
NOW THEREFORE,
in consideration of Employee’s employment, the
Company’s willingness to disclose certain confidential and
proprietary information to Employee and the mutual covenants
contained herein as well as other good and valuable consideration,
the receipt of which is hereby acknowledged, the Parties agree as
follows:
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Employment . As of the
effective date of this Agreement, the Company agrees to employ
Employee and Employee agrees to serve as Senior Vice President,
Sales, Clinical & ITS. Employee agrees to perform all duties
and responsibilities traditionally assigned to, or falling within
the normal responsibilities of, an individual employed in the
above-referenced position. Employee also agrees to perform any and
all additional duties or responsibilities as may be assigned by the
Company in its sole discretion. The Parties acknowledge that both
this title and the underlying duties may change.
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| 2. |
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Best Efforts and Duty of
Loyalty . During the term of employment with the Company,
Employee covenants and agrees to exercise reasonable efforts to
perform all assigned duties in a diligent and professional manner
and in the best interest of the Company. Employee agrees to devote
his full working time, attention, talents, skills and best efforts
to further the Company’s business and agrees not to take any
action, or make any omission, that deprives the Company of any
business opportunities or otherwise act in a manner that conflicts
with the best interest of the Company or is otherwise detrimental
to its business. Employee agrees not to engage in any outside
business activity, whether or not pursued for gain, profit or other
pecuniary advantage, without the express written consent of the
Company. Employee shall act at all times in accordance with the
Company’s Code of Ethical Business Conducts, and all other
applicable policies which may exist or be adopted by the Company
from time to time.
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| 3. |
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At-Will Employment .
Subject to the terms and conditions set forth below, Employee
specifically acknowledges and accepts such employment on an
“at-will” basis and agrees that both Employee and the
Company retain the right to terminate this relationship at any
time, with or without cause, for any reason not prohibited by
applicable law upon notice as required by this Agreement. Employee
acknowledges that nothing in this Agreement is intended to create,
nor should be interpreted to create, an employment contract for any
specified length of time between the Company and Employee.
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| 4. |
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Compensation . For all
services rendered by Employee on behalf of, or at the request of,
the Company, Employee shall be paid as follows:
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(a) |
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A base salary at the bi-weekly
rate of Thirteen Thousand Seventy Six Dollars and Ninety-Two Cents
($13,076.92), less usual and ordinary deductions;
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(b) |
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Incentive compensation, payable
solely at the discretion of the Company, pursuant to the
Company’s existing Incentive Compensation Program or any
other program as the Company may establish in its sole discretion;
and
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(c) |
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Such additional compensation,
benefits and perquisites as the Company may deem appropriate
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Changes to Compensation .
Notwithstanding anything contained herein to the contrary, Employee
acknowledges that the Company specifically reserves the right to
make changes to Employee’s compensation in its sole
discretion including, but not limited to, modifying or eliminating
a compensation component. The Parties agree that such changes shall
be deemed effective immediately and a modification of this
Agreement unless, within seven (7) days after receiving notice
of such change, Employee exercises his right to terminate this
Agreement without cause or for “Good Reason” as
provided below in Paragraph No. 11. The Parties
anticipate that Employee’s compensation structure will be
reviewed on an annual basis but acknowledge that the Company shall
have no obligation to do so.
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Direct Deposit . As a
condition of employment, and within thirty (30) days of the
effective date of this Agreement, Employee agrees to make all
necessary arrangements to have all sums paid pursuant to this
Agreement direct deposited into one or more bank accounts as
designated by Employee.
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Warranties and
Indemnification . Employee warrants that he is not a party to
any contract, restrictive covenant, or other agreement purporting
to limit or otherwise adversely affecting his ability to secure
employment with any third party. Alternatively, should any such
agreement exist, Employee warrants that the contemplated services
to be performed hereunder will not violate the terms and conditions
of any such agreement. In either event, Employee agrees to fully
indemnify and hold the Company harmless from any and all claims
arising from, or involving the enforcement of, any such restrictive
covenants or other agreements.
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Restricted Duties .
Employee agrees not to disclose, or use for the benefit of the
Company, any confidential or proprietary information belonging to
any predecessor employer(s) that otherwise has not been made public
and further acknowledges that the Company has specifically
instructed him not to disclose or use such confidential or
proprietary information. Based on his understanding of the
anticipated duties and responsibilities hereunder, Employee
acknowledges that such duties and responsibilities will not compel
the disclosure or use of any such confidential and proprietary
information.
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| 9. |
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Termination Without Cause .
The Parties agree that either party may terminate this employment
relationship at any time, without cause, upon sixty
(60) days’ advance written notice or, if terminated by
the Company, pay in lieu of notice (hereinafter referred to as
“notice pay”). In such event, Employee shall only be
entitled to such compensation, benefits and perquisites that have
been paid or fully accrued as of the effective date of his
separation and as otherwise explicitly set forth in this Agreement.
However, in no event shall Employee be entitled to notice pay if
Employee is eligible for and accepts severance payments pursuant to
the provisions of Paragraphs 16 and 17, below.
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| 10. |
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Termination With Cause .
Employee’s employment may be terminated by the Company at any
time “for cause” without notice or prior warning. For
purposes of this Agreement, “cause” shall mean the
Company’s good faith determination that Employee has:
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(a) |
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Acted with gross neglect or
willful misconduct in the discharge of his duties and
responsibilities or refused to follow or comply with the lawful
direction of the Company or the terms and conditions of this
Agreement providing such refusal is not based primarily on
Employee’s good faith compliance with applicable legal or
ethical standards;
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(b) |
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Acquiesced or participated in any
conduct that is dishonest, fraudulent, illegal (at the felony
level), unethical, involves moral turpitude or is otherwise illegal
and involves conduct that has the potential, in the Company’s
reasonable opinion, to cause the Company, its officers or its
directors embarrassment or ridicule;
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(c) |
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Violated a material requirement of
any Company policy or procedure, specifically including a violation
of the Company’s Code of Ethics or Associate Policy
Manual;
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(d) |
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Disclosed without proper
authorization any trade secrets or other Confidential Information
(as defined herein);
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(e) |
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Engaged in any act that, in the
reasonable opinion of the Company, is contrary to its best
interests or would hold the Company, its officers or directors up
to probable civil or criminal liability, provided that, if
Executive acts in good faith in compliance with applicable legal or
ethical standards, such actions shall not be grounds for
termination for cause; or
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(f) |
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Engaged in such other conduct
recognized at law as constituting cause.
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Upon the occurrence or discovery
of any event specified above, the Company shall have the right to
terminate Employee’s employment, effective immediately, by
providing notice thereof to Employee without further obligation to
him, other than accrued wages or other accrued wages, deferred
compensation or other accrued benefits of employment (collectively
referred to herein as “Accrued Obligations”), which
shall be paid in accordance with the Company’s past practice
and applicable law. To the extent any violation of this Paragraph
is capable of being promptly cured by Employee (or cured within a
reasonable period to the Company’s satisfaction), the Company
agrees to provide Employee with a reasonable opportunity to so cure
such defect. Absent written mutual agreement otherwise, the Parties
agree in advance that it is not possible for Employee to cure any
violations of sub-paragraphs (b) or (d) and, therefore,
no opportunity for cure need be provided in those
circumstances.
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Termination by Employee for
Good Reason . Employee may terminate this Agreement and declare
this Agreement to have been terminated “without cause”
by the Company (and, therefore, for “Good Reason”) upon
the occurrence, without Employee’s consent, of any of the
following circumstances:
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(a) |
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The assignment to Employee of
duties lasting more than sixty (60) days that are materially
inconsistent with Employee’s then current position or a
material change in his reporting relationship to the CEO or his
successor;
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(b) |
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The failure to elect or reelect
Employee as Vice President or other officer of the Company (unless
such failure is related in any way to the Company’s decision
to terminate Employee for cause);
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(c) |
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The failure of the Company to
continue to provide Employee with office space, related facilities
and support personnel (including, but not limited to,
administrative and secretarial assistance) within the
Company’s principal executive offices commensurate with his
responsibilities to, and position within, the Company;
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(d) |
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A reduction by the Company in the
amount of Employee’s base salary or the discontinuation or
reduction by the Company of Employee’s participation at the
same level of eligibility as compared to other peer employees in
any incentive compensation, additional compensation, benefits,
policies or perquisites subject to Employee understanding that such
reduction(s) shall be permissible if the change applies in a
similar way to other peer level employees;
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(e) |
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The relocation of the
Company’s principal executive offices or Employee’s
place of work to a location requiring a change of more than fifty
(50) miles in Employee’s daily commute; or
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(f) |
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A failure by the Company to
perform its obligations under this Employment Agreement (other than
inadvertent failures that are cured by the Company promptly upon
notice from the Company).
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Termination Due to Death or
Disability . In the event Employee dies or suffers a disability
(as defined herein) during the term of employment, this Agreement
shall automatically be terminated on the date of such death or
disability without further obligation on the part of the Company
other than the payment of Accrued Obligations. For purposes of this
Agreement, Employee shall be considered to have suffered a
“disability” upon a determination that Employee cannot
perform the essential functions of his position as a result of a
such a disability and the occurrence of one or more of the
following events:
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(a) |
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Employee becomes eligible for or
receives any benefits pursuant to any disability insurance policy
as a result of a determination under such policy that Employee is
permanently disabled;
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(b) |
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Employee becomes eligible for or
receives any disability benefits under the Social Security Act;
or
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(c) |
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A good faith determination by the
Company that Employee is and will likely remain unable to perform
the essential functions of his duties or responsibilities hereunder
on a full-time basis, with or without reasonable accommodation, as
a result of any mental or physical impairment.
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Notwithstanding anything expressed
or implied above to the contrary, the Company agrees to fully
comply with its obligations under the Family and Medical Leave Act
of 1993 and the Americans with Disabilities Act as well as any
other applicable federal, state, or local law, regulation, or
ordinance governing the provision of leave to individuals with
serious health conditions or the protection of individuals with
disabilities as well as the Company’s obligation to provide
reasonable accommodation thereunder.
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Exit Interview . Upon
termination of Employee’s employment for any reason, Employee
agrees, if requested, to participate in an exit interview with the
Company and reaffirm in writing his post-employment obligations as
set forth in this Agreement.
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| 14. |
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Section 409A
Notification . Employee acknowledges that he has been advised
of the American Jobs Creation Act of 2004, which added
Section 409A to the Internal Revenue Code
(“Section 409A”), and significantly changed the
taxation of nonqualified deferred compensation plans and
arrangements. Under proposed and final regulations as of the date
of this Agreement, Employee has been advised that his severance pay
and other termination benefits may be treated by the Internal
Revenue Service as providing “nonqualified deferred
compensation,” and therefore subject to Section 409A. In
that event, several provisions in Section 409A may affect
Employee’s receipt of severance compensation, including the
timing thereof. These include, but are not limited to, a provision
which requires that distributions to “specified
employees” of public companies on account of separation from
service may not be made earlier than six (6) months after the
effective date of such separation. If applicable, failure to comply
with Section 409A can lead to immediate taxation of such
deferrals, with interest calculated at a penalty rate and a 20%
penalty. As a result of the requirements imposed by the American
Jobs Creation Act of 2004, Employee agrees if he is a
“specified employee” at the time of his termination of
employment and if payments in connection with such termination of
employment are subject to Section 409A and not otherwise
exempt, such payments (and other benefits to the extent applicable)
due Employee at the time of termination of employment shall not be
paid until a date at least six (6) months after the effective
date of Employee’s termination of employment
(“Employee’s Effective Termination Date”).
Notwithstanding any provision of this Agreement to the contrary, to
the extent that any payment under the terms of this Agreement would
constitute an impermissible acceleration of payments under
Section 409A or any regulations or Treasury guidance
promulgated thereunder, such payments shall be made no earlier than
at such times allowed under Section 409A. If any provision of
this Agreement (or of any award of compensation) would cause
Employee to incur any additional tax or interest under
Section 409A or any regulations or Treasury guidance
promulgated thereunder, the Company or its successor may reform
such provision; provided that it will (i) maintain, to the
maximum extent practicable, the original intent of the applicable
provision without violating the provisions of Section 409A and
(ii) notify and consult with Employee regarding such
amendments or modifications prior to the effective date of any such
change.
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Section 409A
Acknowledgement . Employee acknowledges that, notwithstanding
anything contained herein to the contrary, both Parties shall be
independently responsible for accessing their own risks and
liabilities under Section 409A that may be associated with any
payment made under the terms of this Agreement or any other
arrangement which may be deemed to trigger Section 409A.
Further, the Parties agree that each shall independently bear
responsibility for any and all taxes, penalties or other tax
obligations as may be imposed upon them in their individual
capacity as a matter of law. To the extent applicable, Employee
understands and agrees that he shall have the responsibility for,
and he agrees to pay, any and all appropriate income tax or other
tax obligations for which he is individually responsible and/or
related to receipt of any benefits provided in this Agreement.
Employee agrees to fully indemnify and hold the Company harmless
for any taxes, penalties, interest, cost or attorneys’ fee
assessed against or incurred by the Company on account of such
benefits having been provided to him or based on any alleged
failure to withhold taxes or satisfy any claimed obligation.
Employee understands and acknowledges that neither the Company, nor
any of its employees, attorneys, or other representatives has
provided or will provide him with any legal or financial advice
concerning taxes or any other matter, and that he has not relied on
any such advice in deciding whether to enter into this
Agreement.
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| 16. |
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Severance Payments . In the
event Employee’s employment is terminated by the Company
without cause (including by Employee for Good Reason), and subject
to the normal terms and conditions imposed by the Company as set
forth herein and in the attached Separation and Release Agreement,
Employee shall be eligible to receive severance pay based upon his
base salary at the time of termination for a period determined in
accordance with any guidelines as may be established by the Company
or for a period up to twelve (12) months (whichever is
longer).
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Severance Payment Terms and
Conditions . No severance pay shall be paid if Employee
voluntarily leaves the Company’s employ without Good Reason,
as defined above, or is terminated for cause. Any severance pay
made payable under this Agreement shall be paid in lieu of, and not
in addition to, any other contractual, notice or statutory pay or
other accrued compensation obligation (excluding accrued wages and
deferred compensation). Additionally, such severance pay is
contingent upon Employee fully complying with the restrictive
covenants contained herein and executing a Separation and Release
Agreement in a form not substantially different from that attached
as Exhibit A. Further, the Company’s obligation to
provide severance hereunder shall be deemed null and void should
Employee fail or refuse to execute and deliver to the Company the
Company’s then-standard Separation and Release Agreement
(without modification) within any time period as may be prescribed
by law or, in absence thereof, twenty-one (21) days after the
Employee’s Effective Termination Date. Conditioned upon the
execution and delivery of the Separation and Release Agreement as
set forth in the prior sentence, severance pay benefits shall be
paid as follows: (i) in one lump sum equivalent to six
(6) months’ salary on the day following the date which
is six (6) months following Employee’s Effective
Termination Date with any remainder to be paid in bi-weekly
installments equivalent to the Employee’s salary commencing
upon the next regularly scheduled payroll date, if both the
severance pay benefit is subject to Section 409A and if
Employee is a “specified employee” under
Section 409A or (ii) for any severance pay benefits not
subject to clause (i), begin upon the next regularly scheduled
payroll following the earlier to occur of fifteen (15) days
from the Company’s receipt of an executed Separation and
Release Agreement or the expiration of sixty (60) days after
Employee’s Effective Termination Date and shall be paid on
the Company’s regularly scheduled pay dates; provided,
however, that if the before-stated sixty (60) day period ends
in a calendar year following the calendar year in which the sixty
(60) day period commenced, then any benefits not subject to
clause (i) shall only begin on the next regularly scheduled
payroll following the expiration of sixty (60) days after the
Employee’s Effective Termination Date. Excluding any lump sum
payment due as a result of the application of Section 409A
(which shall be paid regardless of reemployment), all other
severance payments provided hereunder shall terminate upon
reemployment.
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| 18. |
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Assignment of Rights
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(a) |
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Copyrights . Employee
agrees that all works of authorship fixed in any tangible medium of
expression by him during the term of this Agreement relating to the
Company’s business (“Works”), either solely or
jointly with others, shall be and remain exclusively the property
of the Company. Each such Work created by Employee is a “work
made for hire” under the copyright law and the Company may
file applications to register copyright in such Works as author and
copyright owner thereof. If, for any reason, a Work created by
Employee is excluded from the definition of a “work made for
hire” under the copyright law, then Employee does hereby
assign, sell, and convey to the Company the entire rights, title,
and interests in and to such Work, including the copyright therein,
to the Company.
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Employee will execute any
documents that the Company deems necessary in connection with the
assignment of such Work and copyright therein. Employee will take
whatever steps and do whatever acts the Company requests,
including, but not limited to, placement of the Company’s
proper copyright notice on Works created by Employee to secure or
aid in securing copyright protection in such Works and will assist
the Company or its nominees in filing applications to register
claims of copyright in such Works. The Company shall have free and
unlimited access at all times to all Works and all copies thereof
and shall have the right to claim and take possession on demand of
such Works and copies.
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(b) |
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Inventions . Employee
agrees that all discoveries, concepts, and ideas, whether
patentable or not, including, but not limited to, apparatus,
processes, methods, compositions of matter, techniques, and
formulae, as well as improvements thereof or know-how related
thereto, relating to any present or prospective product, process,
or service of the Company (“Inventions”) that Employee
conceives or makes during the term of this Agreement relating to
the Company’s business, shall become and remain the exclusive
property of the Company, whether patentable or not, and Employee
will, without royalty or any other consideration:
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(i) |
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Inform the Company promptly and
fully of such Inventions by written reports, setting forth in
detail the procedures employed and the results achieved;
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(ii) |
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Assign to the Company all of his
rights, title, and interests in and to such Inventions, any
applications for United States and foreign Letters Patent, any
United States and foreign Letters Patent, and any renewals thereof
granted upon such Inventions;
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(iii) |
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Assist the Company or its
nominees, at the expense of the Company, to obtain such United
States and foreign Letters Patent for such Inventions as the
Company may elect; and
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(iv) |
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Execute, acknowledge, and deliver
to the Company at the Company’s expense such written
documents and instruments, and do such other acts, such as giving
testimony in support of his inventorship, as may be necessary in
the opinion of the Company, to obtain and maintain United States
and foreign Letters Patent upon such Inventions and to vest the
entire rights and title thereto in the Company and to confirm the
complete ownership by the Company of such Inventions, patent
applications, and patents.
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Company Property . All
records, files, drawings, documents, data in whatever form,
business equipment (including computers, PDAs, cell phones, etc.),
and the like relating to, or provided by, the Company shall be and
remain the sole property of the Company. Upon termination of
employment, Employee shall immediately return to the Company all
such items without retention of any copies and without additional
request by the Company. De minimis items such as pay stubs, 401(k)
plan summaries, employee bulletins, and the like are excluded from
this requirement.
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| 20. |
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Confidential Information .
Employee acknowledges that the Company and its affiliated entities
(herein collectively referred to as “Companies”)
possess certain trade secrets as well as other confidential and
proprietary information which they have acquired or will acquire at
great effort and expense. Such information may include, without
limitation, confidential information, whether in tangible or
intangible form, regarding the Companies’ products and
services, marketing strategies, business plans, operations, costs,
current or prospective customer information (including customer
identities, contacts, requirements, creditworthiness, preferences,
and like matters), product concepts, designs, prototypes or
specifications, research and development efforts, technical data
and know-how, sales information, including pricing and other terms
and conditions of sale, financial information, internal procedures,
techniques, forecasts, methods, trade information, trade secrets,
software programs, project requirements, inventions, trademarks,
trade names, and similar information regarding the Companies’
business(es) (collectively referred to herein as
“Confidential Information”). Employee further
acknowledges that, as a result of his employment with the Company,
Employee will have access to, will become acquainted with, and/or
may help develop, such Confidential Information. Confidential
Information shall not include information readily available in the
public so long as such information was not made available through
fault of Employee or wrong doing by any other individual.
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Restricted Use of Confidential
Information . Employee agrees that all Confidential Information
is and shall remain the sole and exclusive property of the Company
and/or its affiliated entities. Except as may be expressly
authorized by the Company in writing, Employee agrees not to
disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party while employed by the
Company and for as long thereafter as such information remains
confidential (or as limited by applicable law). Further, Employee
agrees to use such Confidential Information only in the course of
Employee’s duties in furtherance of the Company’s
business and agrees not to make use of any such Confidential
Information for Employee’s own purposes or for the benefit of
any other entity or person.
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Acknowledged Need for Limited
Restrictive Covenants . Employee acknowledges that the
Companies have spent and will continue to expend substantial
amounts of time, money and effort to develop their business
strategies, Confidential Information, customer identities and
relationships, goodwill and employee relationships, and that
Employee will benefit from these efforts. Further, Employee
acknowledges the inevitable use of, or near-certain influence by
his knowledge of, the Confidential Information disclosed to
Employee during the course of employment if allowed to compete
against the Company in an unrestricted manner and that such use
would be unfair and extremely detrimental to the Company.
Accordingly, based on these legitimate business reasons, Employee
acknowledges each of the Companies’ need to protect their
legitimate business interests by reasonably restricting
Employee’s ability to compete with the Company on a limited
basis.
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| 23. |
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Non-Solicitation . During
Employee’s employment and for a period of eighteen (18)
months thereafter, Employee agrees not to directly or indirectly
engage in the following prohibited conduct:
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(a) |
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Solicit, offer products or
services to, or accept orders for, any Competitive Products or
otherwise transact any competitive business with, any customer or
entity with whom Employee had contact or transacted any business on
behalf of the Company (or any Affiliate thereof) during the
eighteen (18) month period preceding Employee’s date of
separation or about whom Employee possessed, or had access to,
confidential and proprietary information;
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(b) |
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Attempt to entice or otherwise
cause any third party to withdraw, curtail or cease doing business
with the Company (or any Affiliate thereof), specifically including
customers, vendors, independent contractors and other third party
entities;
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(c) |
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Disclose to any person or entity
the identities, contacts or preferences of any customers of the
Company (or any Affiliate thereof), or the identity of any other
persons or entities having business dealings with the Company (or
any Affiliate thereof);
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(d) |
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Induce any individual who has been
employed by or had provided services to the Company (or any
Affiliate thereof) within the six (6) month period immediately
preceding the effective date of Employee’s separation to
terminate such relationship with the Company (or any Affiliate
thereof);
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(e) |
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Assist, coordinate or otherwise
offer employment to, accept employment inquiries from, or employ
any individual who is or had been employed by the Company (or any
Affiliate thereof) at any time within the six (6) month period
immediately preceding such offer, or inquiry;
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(f) |
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Communicate or indicate in any way
to any customer of the Company (or any Affiliate thereof), prior to
formal separation from the Company, any interest, desire, plan, or
decision to separate from the Company; or
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(g) |
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Otherwise attempt to directly or
indirectly interfere with the Company’s business, the
business of any of the Companies or their relationship with their
employees, consultants, independent contractors or customers.
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| 24. |
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Limited Non-Compete . For
the above-stated reasons, and as a condition of employment to the
fullest extent permitted by law, Employee agrees during the
Relevant Non-Compete Period not to directly or indirectly engage in
the following competitive activities:
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(a) |
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Employee shall not have any
ownership interest in, work for, advise, consult, or have any
business connection or business or employment relationship in any
competitive capacity with any Competitor unless Employee provides
written notice to the Company of such relationship prior to
entering into such relationship and, further, provides sufficient
written assurances to the Company’s satisfaction that such
relationship will not, jeopardize the Company’s legitimate
interests or otherwise violate the terms of this Agreement;
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(b) |
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Employee shall not engage in any
research, development, production, sale or distribution of any
Competitive Products, specifically including any products or
services relating to those for which Employee had responsibility
for the eighteen (18) month period preceding Employee’s
date of separation;
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10
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(c) |
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Employee shall not market, sell,
or otherwise offer or provide any Competitive Products within his
Geographic Territory (if applicable) or Assigned Customer Base,
specifically including any products or services relating to those
for which Employee had responsibility for the eighteen
(18) month period preceding Employee’s date of
separation; and
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(d) |
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Employee shall not distribute,
market, sell or otherwise offer or provide any Competitive Products
to any customer of the Company with whom Employee had contact or
for which Employee had responsibility at any time during the
eighteen (18) month period preceding Employee’s date of
separation
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| 25. |
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Non-Compete Definitions .
For purposes of this Agreement, the Parties agree that the
following terms shall apply:
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(a) |
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“Affiliate” includes
any parent, subsidiary, joint venture, sister company, or other
entity controlled, owned, managed or otherwise associated with the
Company;
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(b) |
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“Assigned Customer
Base” shall include all accounts or customers formally
assigned to Employee within a given territory or geographical area
or contacted by him at any time during the eighteen (18) month
period preceding Employee’s date of separation;
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(c) |
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“Competitive Products”
shall include any product or service that directly or indirectly
competes with, is substantially similar to, or serves as a
reasonable substitute for, any product or service in research,
development or design, or manufactured, produced, sold or
distributed by the Company;
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(d) |
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“Competitor” shall
include any person or entity that offers or is actively planning to
offer any Competitive Products
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