Exhibit 10.69
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EMPLOYMENT AGREEMENT
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THIS AGREEMENT is made by and between Synbiotics Corporation, a
California corporation ("EMPLOYER"), and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ("EMPLOYEE") as of
March 6, 1998.
R E C I T A L S:
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WHEREAS, EMPLOYER and EMPLOYEE wish to set forth in this Agreement the
terms and conditions under which EMPLOYEE is to be employed by EMPLOYER.
NOW, THEREFORE, EMPLOYER and EMPLOYEE, in consideration of the mutual
promises set forth herein, agree as follows:
ARTICLE 1
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TERM OF AGREEMENT
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1.1 Term. The term of this Agreement shall commence on the date
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first written above and shall continue until terminated pursuant to Article 6.
ARTICLE 2
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EMPLOYMENT DUTIES
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2.1 Title/Responsibilities. EMPLOYEE shall serve as an employee of
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EMPLOYER and hold the position of Vice President and General Manager, Synbiotics
Instruments of EMPLOYER, having the powers and responsibilities consistent with
such position and reporting to EMPLOYER's Chief Executive Officer, all subject
to ultimate direction and management of EMPLOYER's Board of Directors. EMPLOYEE
shall also perform all duties which from time to time are assigned to him by
EMPLOYER's Chief Executive Officer and/or Board of Directors, and shall provide
the Chief Executive Officer and/or Board with periodic reports upon request.
EMPLOYEE's job location shall be Rome, New York and/or Southborough,
Massachusetts as deemed necessary in the reasonable discretion of EMPLOYEE. In
addition, EMPLOYEE will not be required to relocate out of the area of
Southborough, Massachusetts without his prior written consent.
2.2 Full Time Attention. EMPLOYEE shall perform his duties hereunder
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in a diligent and professional manner and devote substantially all of his
business time and attention, best efforts, energy and skills to EMPLOYER during
the time he is employed hereunder as Vice President and General Manager,
Synbiotics Instruments of EMPLOYER. During the term of this Agreement EMPLOYEE
shall not without the express consent of EMPLOYER's Board of Directors serve or
act as a shareholder (except passive holdings of less than 1% of the stock),
employee, agent, consultant, officer, director, partner, representative or owner
of any other business entity, nor (if it would require more than an
insubstantial amount of business time or attention) of any non-profit entity.
Notwithstanding the foregoing, the parties hereto hereby acknowledge and agree
that EMPLOYEE shall have the ability to devote a reasonable amount of time
supporting the efforts of Microlab Systems, Inc., including, but not limited to,
serving
as director of Microlab Systems, Inc., for so long as such efforts do not in the
opinion of EMPLOYER, interfere with his responsibilities for EMPLOYER.
2.3 Compliance with Rules. EMPLOYEE shall comply with all applicable
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governmental laws, rules and regulations and with all of EMPLOYER's policies,
rules and/or regulations applicable to all employees of EMPLOYER.
ARTICLE 3
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COMPENSATION
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3.1 Base Salary. EMPLOYER shall pay semi-monthly to EMPLOYEE a
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salary of $140,000 per annum until such time or times as it may discretionarily
be raised (but not lowered) upon annual performance/salary review by EMPLOYER's
Chief Executive Officer (upon recommendation of its Compensation Committee).
3.2 Additional Compensation (Stock Option). In addition to the
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salary provided in Section 3.1, EMPLOYER hereby grants to EMPLOYEE as additional
compensation for EMPLOYEE's services (but not for any capital-raising purposes
or in connection with any capital-raising activities), a non-qualified stock
option to purchase 50,000 shares of EMPLOYER Common Stock under EMPLOYER's 1995
Stock Option/Stock Issuance Plan, with an exercise price equal to the Fair
Market Value per share of EMPLOYER Common Stock on the date first written above,
such option to vest in sixteen equal quarterly installments.
3.3 Bonus. In addition to the salary provided in Section 3.1,
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EMPLOYEE shall participate in any executive incentive bonus plan which EMPLOYER
may in its discretion establish for 1998 and future years.
ARTICLE 4
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OTHER BENEFITS
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4.1 Fringe Benefits. EMPLOYEE shall be entitled during the term of
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his employment under this Agreement to all other fringe benefits made available
from time to time by EMPLOYER to its executives generally and/or its employees
generally, including without limitation participation in EMPLOYER's 401(k) plan
and group health insurance plan.
4.2 Expenses. EMPLOYER shall reimburse EMPLOYEE, not less often than
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monthly, for reasonable out-of-pocket business expenses incurred by EMPLOYEE in
the course of his duties hereunder (including, but not limited to, reasonable
travel, room and board expenses relating to travel to and from EMPLOYER'S
facility located in Rome, New York), upon submission by EMPLOYEE of appropriate
expense account reports and substantiating receipts.
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4.3 Vacation. EMPLOYEE shall be entitled to three weeks paid
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vacation per full year of service, in accordance with and subject to EMPLOYER's
vacation accrual plan and policies. EMPLOYEE acknowledges the "cap" on vacation
accruals set forth in such plan and policies.
ARTICLE 5
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FORMER EMPLOYMENT
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5.1 No Conflict. EMPLOYEE represents and warrants that the execution
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and delivery by him of this Agreement, his employment by EMPLOYER and his
performance of duties under this Agreement will not conflict with and will not
be constrained by any prior employment or consulting agreement or relationship,
or any other contractual obligation.
5.2 No Use of Prior Confidential Information. EMPLOYEE will not
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intentionally disclose to EMPLOYER or use on its behalf any confidential
information belonging to any of his former employers, but during his employment
by EMPLOYER he will use in the performance of his duties all information (but
only such information) which is generally known and used by persons with
training and experience comparable to his own or is common knowledge in the
industry or otherwise legally in the public domain.
ARTICLE 6
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TERMINATION
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6.1 Term. This Agreement (including EMPLOYEE'S employment) shall
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continue until terminated by either EMPLOYER or EMPLOYEE. Such termination
(including termination of EMPLOYEE's employment) shall be effected by written
notification and may be effected at any time, with or without Cause, for any
reason or no reason.
6.2 Severance. If this Agreement and/or EMPLOYEE's employment is
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terminated as a result of Cause, EMPLOYEE shall be entitled to no severance pay.
If this Agreement and/or EMPLOYEE's employment is terminated other than for
Cause, EMPLOYEE shall be entitled to severance pay as follows: six months'
salary at EMPLOYEE's then base salary rate.
Furthermore, if EMPLOYEE is terminated (other than for Cause) in connection
with an acquisition of EMPLOYER, EMPLOYEE shall be entitled to additional
severance pay of six months' salary at EMPLOYEE's then base salary rate (as well
as the severance pay described in the previous paragraph) and all of EMPLOYEE's
then unvested EMPLOYER stock options shall immediately become fully vested.
"Cause" shall be defined to mean:
(a) Death;
(b) Voluntary resignation (other than because of a material breach by
EMPLOYER of its obligations under this Agreement);
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(c) EMPLOYEE's repudiation of this Agreement;
(d) permanent disability (defined as EMPLOYEE's inability to perform,
with or without reasonable accommodation, the essential functions of his
position for any 50 business days -- exclusive of vacation days taken -- within
any continuous period of 200 days by reason of physical or mental illness or
incapacity);
(e) EMPLOYEE being formally charged with the commission of a felony,
or being convicted of a misdemeanor involving moral turpitude;
(f) EMPLOYEE's demonstrable fraud or dishonesty;
(g) EMPLOYEE's use of alcohol, drugs or any illegal substance in such
a manner as to interfere with the performance of his duties under this
Agreement;
(h) EMPLOYEE's intentional, reckless or grossly negligent action
materially detrimental to the best interest of the EMPLOYER, including any
misappropriation or unauthorized use of EMPLOYER's property or improper use or
disclosure of confidential information (but excluding any good faith exercise of
business judgment);
(i) EMPLOYEE's intentional failure to perform material duties under
this Agreement if such failure has continued for 15 days after EMPLOYEE has been
notified in writing by EMPLOYER of the nature of EMPLOYEE's failure to perform;
(j) EMPLOYEE's chronic absence from work for reasons other than
illness or permitted vacation; or
(k) EMPLOYEE's violation of policies in EMPLOYER's official Employee
Handbook, as it may be amended from time to time.
Termination for Cause shall be without prejudice to any other right or
remedy to which EMPLOYER may be entitled at law, in equity, or under this
Agreement.
ARTICLE 7
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ARBITRATION
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7.1 Final and Binding Arbitration. Any controversy, claim or dispute
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between (a) a party to this Agreement, on the one hand, and (b) the other party
to this Agreement and/or such second party's parents, subsidiaries or affiliates
and/or any of their directors, officers, employees, agents, successors, assigns,
heirs, executors, administrators, or legal representatives, on the other hand,
arising out of, in connection with, or in relation to (t) the interpretation,
validity, performance or breach of this Agreement, (u) EMPLOYEE's stock options
and the underlying shares, (v) EMPLOYEE's employment by EMPLOYER, (w) any
termination of such
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employment, (x) any actions during or with respect to EMPLOYEE's work for
EMPLOYER, (y) any claims for breach of contract, tort, or breach of the covenant
of good faith and fair dealing, or (z) any claims of discrimination or other
claims under any federal, state or local law or regulation now in existence or
hereinafter enacted and as amended from time to time concerning in any way the
subject of EMPLOYEE's employment with EMPLOYER or its termination, shall, at the
request of either party, be resolved to the exclusion of a court of law by
binding arbitration in San Diego, California, in accordance with Exhibit A
hereto. Each of EMPLOYEE and EMPLOYER understands and agrees that the
arbitration shall be instead of any civil litigation and that the arbitrator's
decision shall be final and binding to the fullest extent permitted by law and
enforceable by any court having jurisdiction thereof. The only claims not
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covered by this Section 7.1 are claims for benefits under the workers'
compensation laws, claims for unemployment insurance benefits, and matters
within the jurisdiction of the California Labor Commissioner, which will be
resolved pursuant to those laws.
ARTICLE 8
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GENERAL PROVISIONS
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8.1 Governing Law. This Agreement and the rights of the parties
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thereunder shall be governed by and interpreted under California law.
8.2 Assignment. EMPLOYEE may not delegate, assign, pledge or
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encumber his rights or obligations under this Agreement or any part thereof.
8.3 Notice. Any notice required or permitted to be given under this
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Agreement shall be sufficient if it is in writing and is sent by registered or
certified mail, postage prepaid, or personally delivered, to the following
addresses, or to such other addresses as either party shall specify by giving
notice under this section:
TO EMPLOYER: Chief Executive Officer, Synbiotics Corporation
▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Copy to: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, Phleger & ▇▇▇▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇ ▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
TO EMPLOYEE: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
8.4 Amendment. This Agreement may be waived, amended or supplemented
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only by an express writing signed by both of the parties hereto. To be valid,
EMPLOYER's
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signature must be by a person specially authorized by EMPLOYER's Board of
Directors to sign such particular document.
8.5 Waiver. No waiver of any provision of this Agreement shall be
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binding unless and until set forth expressly in writing and signed by the
waiving party. To be valid, EMPLOYER's signature must be by a person specially
authorized by EMPLOYER's Board of Directors to sign such particular document.
The waiver by either party of a breach of any provision of this Agreement shall
not operate or be construed as a waiver of any preceding or succeeding breach of
the same or any other term or provision, or a waiver of any contemporaneous
breach of any other term or provision, or a continuing waiver of the same or any
other term or provision. No failure or delay by a party in exercising any
right, power, or privilege hereunder or other conduct by a party shall operate
as a waiver thereof, in the particular case or in any past or future case, and
no single or partial exercise thereof shall preclude the full exercise or
further exercise of any right, power, or privilege. No action taken pursuant to
this Agreement shall be deemed to constitute a waiver by the party taking such
action of compliance with any representations, warranties, covenants or
agreements contained herein.
8.6 Severability. All provisions contained herein are severable and
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in the event that any of them shall be held to be to any extent invalid or
otherwise unenforceable by any court of competent jurisdiction, such provision
shall be construed as if it were written so as to effectuate to the greatest
possible extent the parties' expressed intent; and in every case the remainder
of this Agreement shall not be affected thereby and shall remain valid and
enforceable, as if such affected provision were not contained herein.
8.7 Headings. Article and section headings are inserted herein for
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convenience of reference only and in no way are to be construed to define, limit
or affect the construction or interpretation of the terms of this Agreement.
8.8 Drafting Party. The provisions of this Agreement have been
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prepared, examined, negotiated and revised by each party hereto, and no
implication shall be drawn and no provision shall be construed against either
party by virtue of the purported identity of the drafter of this Agreement, or
any portion thereof.
8.9 No Outside Representations. No representation, warranty, condition,
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promise, understanding or agreement of any kind with respect to the subject
matter hereof has been made by either party, nor shall any such be relied upon
by either party, except those contained herein. There were no inducements to
enter into this Agreement, except for what is expressly set forth in this
Agreement.
8.10 Entire Agreement. This Agreement, together with EMPLOYER's
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standard Proprietary Information and Inventions Agreement, constitutes the
entire agreement between the parties pertaining to the subject matter hereof and
completely supersedes all prior or contemporaneous agreements, understandings,
arrangements, commitments, negotiations and
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discussions of the parties, whether oral or written (all of which shall have no
substantive significance or evidentiary effect). Each party acknowledges,
represents and warrants that he or it has not relied on any representation,
agreement, understanding, arrangement or commitment which has not been expressly
set forth in this Agreement. Each party acknowledges, represents and warrants
that this Agreement is fully integrated and not in need of parol evidence in
order to reflect the intentions of the parties. The parties specifically intend
that the literal words of this Agreement shall, alone, conclusively determine
all questions concerning the parties' intent.
IN WITNESS WHEREOF, the parties have executed and delivered this
Employment Agreement in San Diego, California as of the date first written
above.
SYNBIOTICS CORPORATION
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Vice President, Chief
Financial Officer, and Secretary
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Attachment: Exhibit A (Arbitration Procedures)
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EXHIBIT A
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ARBITRATION PROCEDURES
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1. Agreement to Arbitrate
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In the event that there is any dispute relating to, regarding or arising in
connection with EMPLOYEE's employment with EMPLOYER which cannot be resolved
through direct discussion or mediation, regardless of the kind or type of
dispute (excluding claims for workers' compensation, unemployment insurance or
any matters within the jurisdiction of the California Labor Commissioner), all
such disputes shall be submitted exclusively to final and binding arbitration
pursuant to the provisions of the Federal Arbitration Act or, if inapplicable,
the Uniform Arbitration Act (California Code of Civil Procedure (S) 1280 et
seq.), upon request submitted in writing to the President within one year from
the date the dispute first arose, or within one year of the date of termination
of employment, whichever occurs first. This procedure shall be the exclusive
method for resolving all claims relating to the termination of EMPLOYEE's
employment, including but not limited to any alleged violations of federal,
state and/or local statutes; all claims based upon any purported breach of duty
arising in contract or tort, including but not limited to breach of contract,
breach of the covenant of good faith and fair dealing, or violation of public
policy; and any other alleged violation of an employee's statutory, contractual
or common law rights.
Any failure to request arbitration in accordance with the foregoing
provisions shall constitute a waiver of all rights to raise or present any
claims in any form, in any forum, arising out of any dispute that was subject to
arbitration.
2. Selection of Arbitrator
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All disputes subject to arbitration will be resolved by a single arbitrator
selected from a list provided by the California Mediation and Conciliation
Service from its Employment Arbitration Panel. The parties shall select the
arbitrator by alternately striking names from the list, and the last name
remaining on the list shall be the arbitrator selected to resolve the dispute.
The arbitrator must be selected within thirty (30) days of receipt of the
written request for arbitration. The arbitration hearing shall be held in San
Diego, California, at a neutral location selected by the parties or, in the
event the parties are unable to agree, at a location designated by the
arbitrator.
3. Authority of Arbitrator
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The arbitrator shall only be authorized to exercise the powers specifically
enumerated by this procedure and to decide the dispute in accordance with
governing principles of law and equity. The arbitrator shall have no authority
to modify the powers granted by the terms of this
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procedure or to modify the terms of the employee handbook, except as required by
law. The arbitrator shall have the authority to rule on motions by the parties,
to issue protective orders upon motion of any party or third party, and to
determine only the disputes submitted by the parties based upon the grounds
presented. Any dispute or argument not presented by the parties is outside the
scope of the arbitrator's jurisdiction and any award invoking such disputes or
arguments is subject to a motion to vacate; provided, however, the arbitrator
shall have exclusive authority to resolve any dispute relating to the validity,
interpretation and enforcement of these arbitration procedures.
4. Discovery
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The arbitrator shall have the power, in addition to determining the merits
of the dispute submitted, to permit discovery regarding the subject matter of
arbitration and to enforce the rights, remedies, procedures, duties, liabilities
and obligations of discovery by the imposition of the same terms, conditions,
consequences, liabilities, sanctions and penalties as may be imposed in like
circumstances by a Superior Court under the California Code of Civil Procedure.
All discovery must be completed thirty (30) days prior to the date set for the
arbitration hearing.
5. Hearing Procedure
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The issue(s) submitted to the arbitrator must be set forth in the request
for arbitration. The arbitrator shall have no authority to frame the statement
of the issue(s). Unless otherwise agreed by the parties, the arbitration
hearing shall be governed by the formal rules of evidence contained in the
California Evidence Code. The parties shall mutually agree on the number of
days required for hearing. The hearing shall be recorded and transcribed
verbatim by a certified shorthand reporter. Each party shall bear its own costs
with respect to a copy of the transcript of the hearing; however, the parties
shall each be responsible for one-half the cost of the court reporter's fee and
the arbitrator's copy of the hearing transcript.
6. Post-Hearing Procedure
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Each party shall have the right to present closing argument at the
conclusion of all sworn testimony and, in addition to or in lieu of closing
argument, either party shall have the right to submit post-hearing briefs. The
due date and procedure for exchanging post-hearing briefs shall be mutually
agreed upon by the parties or as directed by the arbitrator.
7. Opinion and Award
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The arbitrator shall issue a written opinion and award within sixty (60)
days of closing arguments or the receipt of post-hearing briefs, whichever is
later. The arbitration award and opinion shall be signed and dated by the
arbitrator and shall decide all issues submitted and set forth the legal
principles supporting each aspect of the opinion and award. The arbitrator
shall only be permitted to award those remedies in law or equity which are
requested by the parties
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and which are supported by the credible, relevant evidence. The arbitrator
shall have no authority to award punitive or exemplary damages under any
circumstances or for any reason.
8. Fees and Costs
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Each party shall be responsible for its own attorney's fees, except as
provided by law, and for all costs associated with discovery unless otherwise
ordered by the arbitrator. Each party shall also be responsible for one-half of
the arbitrator's fee and one-half of any costs associated with the facilities
for the arbitration hearing.
9. Severability
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In the event that any provision of this procedure is determined by the
arbitrator or by a court of competent jurisdiction to be illegal, invalid, or
unenforceable to any extent, such term or provision shall be enforced to the
extent permissible under law and all remaining terms and provisions hereof shall
continue in full force and effect.
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