EXHIBIT 10.25
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EMPLOYMENT AGREEMENT
This Employment Agreement (this "Agreement"), is made and entered into as
of the Effective Date (as hereinafter defined), by and between ▇▇▇▇▇/▇▇▇▇▇▇ Inc.
and/or its successors ("Company"), a Delaware corporation, and ▇▇▇▇▇▇ ▇.
▇▇▇▇▇▇▇▇▇▇, a resident of California (the "Employee").
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, ▇▇▇▇▇/▇▇▇▇▇▇, Inc. ("CBI") and its affiliates (including the
Company) (collectively "CBI Affiliates" and individually "CBI Affiliate") are
engaged in business in the State of Illinois and throughout the United States;
and
WHEREAS, the Company desires to employ the Employee in the capacity of
President of the Executive Benefits Practice (the "Division") of the Company,
upon the terms and conditions hereinafter set forth; and
WHEREAS, the Employee is willing to enter into this Agreement with respect
to his employment and services upon the terms and conditions hereinafter set
forth.
NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, the Company hereby employs the Employee and the Employee
hereby accepts such employment upon the terms and conditions hereinafter set
forth:
1. Term of Employment. The term of employment under this Agreement shall
commence on March 21, 2003 (the "Effective Date") and shall extend through
December 31, 2004. Absent notice of termination (described below), commencing on
January 1, 2005 and continuing on each subsequent January l, the term of the
Employee's employment shall automatically be extended for an additional 12
months. To cause the Employee's employment to terminate at the end of the
original or an extended term, either party, at least 30 days prior to such date,
shall give written notice to the other party that the Agreement will terminate.
2. Duties of the Employee. The Employee agrees that during the term of this
Agreement, he will devote substantially all his full professional and
business-related time, skills and best efforts to the businesses of the Company.
The Employee shall report to the Chief Operating Officer of ▇▇▇▇▇/▇▇▇▇▇▇ Inc. or
such other manager as the Board of the Company may from time to time determine.
The Employee may engage in personal investment activities provided such
activities do not interfere with the performance of his duties hereunder or
violate the noncompetition and confidential information provisions set forth
herein. Nothing herein, however, will prevent the Employee, (i) upon approval of
Chief Executive Officer and Chief Operating Officer of CBI, from service as a
director or trustee of other corporations or businesses which are not directly
or indirectly in competition with the business of the Company or in competition
with any present or future CBI Affiliate, (ii) from service on civic or
charitable boards or committees, or (iii) from engaging in personal, passive,
investment activities; provided such activities do not interfere with the
performance of his duties hereunder or violate the noncompetition and
confidential information provisions set forth herein. Employee shall be
indemnified for actions performed in the course of his employment to the same
extent as other similarly situated employees of the CBI Affiliates.
3. Compensation.
(a) Base Salary. The Company shall pay the Employee an annual base
salary of Three Hundred and Thirty Thousand Dollars ($330,000), for each year of
this Agreement (or fraction for portions of a year) ("Base Salary"). After March
21, 2004, such Base Salary may be adjusted upwards in accordance with the
Company's standard salary adjustment guidelines based upon the Employee's
performance. The Employee's Base Salary shall be subject to all appropriate
federal and state withholding taxes and shall be payable in accordance with the
normal payroll procedures of the Company.
(b) Perquisite Allowance. The Company shall pay the Employee an annual
executive perquisite allowance of Twenty Thousand Dollars ($20,000), for each
year of this Agreement (or fraction for portions of a year) (the "Allowance").
The Allowance shall be in lieu of all other executive perquisites and subject to
all appropriate federal and state withholding taxes and shall be payable in
accordance with the normal payroll procedures of the Company.
(c) Annual Bonus. In addition to the Base Salary and Allowance set forth
in Section 3(a) and 3(b) hereof, the Employee shall receive an annual bonus
opportunity (the "Annual Bonus") each year during his employment equal to 125%
of his Base Salary. For the Annual Bonus attributable to the fiscal year ending
December 31, 2003, the bonus targets will be based on the successful completion
of non-financial goals which will be communicated to the Employee by the Chief
Operating Officer of ▇▇▇▇▇/▇▇▇▇▇▇, Inc and one-half of this amount will be
guaranteed to the Employee. The remaining one-half of the 2003 bonus target will
be based on the successful completion of changes to the compensation structure
of commission-based employees within the Division. This determination of whether
these changes have been successfully implemented is at the discretion of the
Chief Operating Officer of ▇▇▇▇▇/▇▇▇▇▇▇ Inc. but will not be more than ninety
(90) days after this Agreement is executed by the Company. For the Annual Bonus
in subsequent years, no part of which will be guaranteed, the Annual Bonus will
be based on financial and/or non-financial goals which will be communicated to
the Employee by the Chief Operating Officer of ▇▇▇▇▇/▇▇▇▇▇▇ Inc. on an annual
basis. Generally, subject to the discretion of the Company, 80% of the Annual
Bonus opportunity is paid if approved budget levels are met. The Annual Bonus
shall be paid on or before March 15 of the year following the year to which the
bonus relates. The Employee must be employed by the Company or a CBI Affiliate
on the date of payment in order to receive his Annual Bonus. The Annual Bonus,
if any, shall be subject to all appropriate federal and state withholding taxes
and shall be paid in accordance with the normal payroll procedures of the
Company.
(d) First Option Grant. The Employee will receive an option to purchase
15,000 shares of common stock of ▇▇▇▇▇/▇▇▇▇▇▇, Inc. ("CBI") at an exercise price
per share equal to the fair market value of such common stock on the date of
grant, which grant will be made under CBI's 1998 Stock Option Plan or a
substantially equivalent stock option plan (the "Option Plan") pursuant to a
stock option purchase agreement substantially in the form attached hereto as
Exhibit B. The date of the grant will be the date on which this Agreement is
executed by the Company. Twenty percent (20%) of such options will vest on the
date of the grant and the remaining 80% will vest annually (20% per year) over a
period of four years from the date of the grant subject to the Employee's
continuing employment with the Company. Such options are otherwise subject to
the terms of the Option Plan. The Employee shall be entitled to receive such
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additional options on such terms and conditions as the Board of Directors may
determine from time to time for other Practice Presidents in a similar fashion.
(e) Second Option Grant. The Employee will also receive an option to
purchase 20,000 shares of common stock of ▇▇▇▇▇/▇▇▇▇▇▇, Inc. ("CBI") at an
exercise price per share equal to the fair market value of such common stock on
the date of grant, which grant will be made under CBI's 1998 Stock Option Plan
or a substantially equivalent stock option plan (the "Option Plan") pursuant to
a stock option purchase agreement substantially in the form attached hereto as
Exhibit C. The date of the grant will be January 2, 2004. Twenty percent (20%)
of such options will vest on the date of the grant and the remaining 80% will
vest annually (20% per year) over a period of four years from the date of the
grant subject to the Employee's continuing employment with the Company. Such
options are otherwise subject to the terms of the Option Plan.
4. Loan Repayment. The Employee is currently party to a Promissory Note
dated April 17, 1998 between himself and the Company (successor to Compensation
Resource Group, the "Holder") which is attached hereto as Exhibit D. As of March
21, 2003, the balance of this Promissory Note is $142,000. The Employee agrees
to pay $100,000 in cash to ▇▇▇▇▇/▇▇▇▇▇▇ Consulting within thirty (30) days
following the effective date of this Agreement as a partial prepayment on the
outstanding balance of this Promissory Note. The Company agrees to amend the
terms of this Promissory Note so that the remaining outstanding principal
amount, together with accrued interest through December 31, 2003 will be
deducted from the amount of the Employee's 2003 Annual Bonus, if any, which will
be payable in March 2004. To the extent that the 2003 Annual Bonus is
insufficient to repay the Company the outstanding Promissory Note balance, the
Employee must repay the Company from his personal funds, no later than April 1,
2004.
5. EBS Termination. The Employee is currently party to an agreement with
the Company known as the Amended and Restated Executive Benefit Specialist
Agreement dated April 15, 2000 (the "EBS Contract") which is attached hereto as
Exhibit E. Pursuant to Section 7.1 of the EBS Contract, the Company will
terminate the EBS Contract on the effective date of this Agreement. All First
Year commission pursuant to section 3.1(a) of the EBS Contract will immediately
cease on the date that this Agreement becomes effective with the exception of
any First Year commissions on the clients Wisconsin Energy or CNF which would
have otherwise been paid under the EBS Contract pursuant to section 3.1(a)
within 90 days of the effective date of this Agreement. The Chief Operating
Officer of ▇▇▇▇▇/▇▇▇▇▇▇, Inc. will be the sole arbiter as to whether this 90 day
period is extended. The purchase of the Employee's vested renewal compensation,
pursuant to Section 5.4 of the EBS Contract, will be per the attached Purchase
Agreement (Exhibit F). The renewal commissions, if any, on the clients Wisconsin
Energy and CNF which are generated based on first year premiums paid after the
effective date of the Agreement, will be purchased in a manner similar to and
formulas consistent with that of the Purchase Agreement.
6. Employee Benefits. The Employee and his eligible dependents shall be
eligible to participate in the qualified employee benefit programs made
available generally to other employees of the CBI Affiliates as well as any
other programs made available generally to other Presidents of Divisions of the
Company; provided, however, that the Employee and his eligible
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dependents must meet any and all eligibility provisions required under such
qualified employee benefit programs. The Employee will be also eligible for
participation in the ▇▇▇▇▇/▇▇▇▇▇▇, Consulting, Inc. Execu-flex Benefit Plan,
beginning in the 2003 plan year, which will provide the Employee with a $15,000
contribution each plan year for so long as this Plan is offered to other
employees and for as long as the Employee remains as President of the Division.
7. Vacations. The Employee shall be entitled to up to twenty (25) days paid
vacation during each full calendar year, and may carry over up to thirty (30)
days of unused vacation to the next succeeding calendar year; provided, however,
that at no time may the Employee have accumulated more than thirty (30) days of
vacation.
8. Reimbursement of Expenses. The Company recognizes that the Employee will
incur legitimate business expenses in the course of rendering services to the
Company hereunder. Accordingly, the Company shall reimburse the Employee, upon
presentation of receipts or other adequate documentation, for all necessary and
reasonable business expenses incurred by the Employee in the course of rendering
services to the Company under this Agreement consistent with the Company's
Travel Policy then in effect.
9. Working Facilities. The Employee shall be furnished an office,
administrative assistance and such other facilities and services suitable to his
position and adequate for the performance of his duties ("Working Facilities"),
which shall be consistent with the reasonable policies of the Company. During
the term of this Agreement, the Employee must spend a minimum of eight (8) to
ten (10) days each month in the headquarters of the Division, currently in
Dallas, Texas.
10. Termination. The employment relationship between the Employee and the
Company created hereunder shall terminate before the expiration of the then
current term upon the occurrence of any one of the following events:
(a) Death or Permanent Disability. The death or permanent disability of
the Employee. For the purpose of this Agreement, "permanent disability" of the
Employee shall mean "disability" as defined under ▇▇▇▇▇/▇▇▇▇▇▇ Consulting,
Inc.'s long-term disability plan.
(b) Termination for Cause. The following events, actions or inactions
by the Employee shall constitute "Cause" for termination of this Agreement:
(i) Substantial refusal or failure to perform duties or any
reasonable obligation or substantial poor performance by the Employee that
is repeated or continued following thirty (30) days written notice to the
Employee of such refusal or failure to perform or of substantial poor
performance given by the Chief Operating Officer of CBI to the Employee;
(ii) Employee's failure to rectify any material breach of
contract under this Agreement within 30 days after written notice of such
breach is given by the President of the Division to the Employee;
(iii) any gross misconduct or gross negligence in the performance
of his duties that materially and adversely affects the Company;
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(iv) a material breach of the Intellectual Property and
Confidentiality Agreement with the Company;
(v) the intentional diversion of a material financial opportunity
away from the CBI Affiliates;
(vi) beginning July 1, 2004 and every month thereafter, financial
performance of the Division that is 20% less than budgeted based on
Division earnings before interest, taxes and amortization (EBITA) on a six
month trailing basis;
(vii) the commission of an act of dishonesty or fraud that is of a
material nature and involves a material breach of trust with respect to the
interests of the Company; and
(viii) the conviction of Employee for any felony or of a crime
involving moral turpitude.
Any notice of discharge shall describe with reasonable specificity the cause or
causes for the termination of the Employee's employment, as well as the
effective date of the termination (which effective date may be the date of such
notice). If the Company terminates the Employee's employment for any of the
reasons set forth above, the Company shall have no further obligations hereunder
from and after the effective date of termination (other than as set forth below)
and shall have all other rights and remedies available under this Agreement or
any other agreement and at law or in equity.
(c) Constructive Termination. In the event of a material reduction in
(or a failure to pay or provide) Employee's earned Base Salary, earned
Allowance, earned Annual Bonus, benefits, vacation time other than as permitted
by this Agreement, or a downward revision in the Employee's title and/or
responsibilities unless mutually agreed upon between the Employee and the Chief
Operating Officer of ▇▇▇▇▇/▇▇▇▇▇▇, Inc., the Employee shall have the right to
terminate his employment and such termination shall be treated in all respects
as if it had been a termination of employment by the Company without Cause.
(d) Termination by the Employee with Notice. The Employee may terminate
this Agreement at any time without liability to the Company arising from the
resignation of the Employee upon thirty (30) days prior written notice to the
Company. The Company retains the right after proper notice of the Employee's
voluntary termination to require the Employee to cease his employment
immediately; provided, however, in such event, the Company shall remain
obligated to pay the Employee his salary during the thirty (30) day notice
period. During such thirty (30) day notice period, the Employee shall provide
such consulting services to the Company as the Company may reasonably request
and shall assist the Company in training his successor and generally preparing
for an orderly transition.
(e) Termination by the Company with Notice. After December 31, 2004, or
prior to such anniversary in connection with a general restructuring of the
Company as a whole, the Company may terminate this Agreement at any time without
liability other than as set forth in Section 10(e) upon thirty (30) days prior
written notice to the Employee. The Company retains the right after proper
notice has been given to the Employee to require the Employee to
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cease his employment immediately; provided, however, in such event, the Company
shall remain obligated to pay the Employee his salary during the thirty (30) day
notice period. During such thirty (30) day notice period, the Employee shall
provide such consulting services to the Company as the Company may reasonably
request and shall assist the Company in training his successor and generally
preparing for an orderly transition.
11. Compensation Upon Termination.
(a) Accrued Obligations. Upon termination of the Employee's employment
under this Agreement for any reason (provided, however, that the Company may not
terminate the Employee without Cause or take actions that would result in a
Constructive Termination of the Employee prior to December 31, 2004, unless the
Company terminates the Employee without Cause prior to such anniversary in
connection with a general restructuring of the Company as a whole), the Employee
shall be entitled to:
(i) the Base Salary earned by him before the effective date of
termination, as provided in Section 3(a) hereof, prorated on the basis of
the number of full days of service rendered by the Employee during the year
to the effective date of termination;
(ii) the Allowance earned by him before the effective date of
termination, as provided in Section 3(b) hereof, prorated on the basis of
the number of full days of service rendered by the Employee during the year
to the effective date of termination;
(iii) any accrued, but unpaid, vacation (up to thirty (30) days);
(iv) any authorized but unreimbursed business expenses; and
(v) any benefits to which the Employee is entitled under the
employee benefit programs maintained by the CBI Affiliates in which the
Company participates.
The sum of the amounts described in clauses (i) through (v) will be
hereinafter referred to as the "Accrued Obligations." The Accrued Obligations
will be paid to the Employee or his estate or beneficiary, as applicable, in a
lump sum in cash within thirty (30) days of the date of termination; provided
that the benefits under clause (v) will be paid or provided in accordance with
the terms of the applicable employee benefit programs.
(b) Compensation for any termination other than Cause or termination
by the Employee. Upon termination of the Employee's employment under this
Agreement for any reason other those specified pursuant to Sections 10(b) or
10(d) of the Agreement, the Employee will receive 1 year of Base Salary,
pursuant to Section 3(a) to be paid over the course of 12 months consistent with
the company's normal payroll practices. The Employee's Base Salary shall be
subject to all appropriate federal and state withholding taxes. The Employee
will also receive a pro-rata share of the Annual Bonus, pursuant to Section 3(c)
based on the Employee's base salary for the fiscal year through the date of
termination and not to include any base salary paid after the Employee's date of
termination.
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(c) Withholding; Offset. Amounts payable under this Section 11 shall be
subject to all appropriate federal and state withholding taxes, and shall be
offset by any amounts due the Company under this Agreement or pursuant to the
promissory note evidencing the sign-on loan.
12. Noncompetition; Nonsolicitation.
(a) The Employee acknowledges that he occupies a position of special
trust and confidence with respect to the Company, and that the position imposes
the obligation to act in a stewardship capacity with respect to the preservation
and development of the Company and its resources for the benefit of future, as
well as present, shareholders, officers, directors and employees. In recognition
of his special relationship with the Company, and to protect the Company's
legitimate business interests without unnecessarily or unreasonably restricting
his professional opportunities in the event of his termination from the Company
and all CBI Affiliates:
(i) The Employee shall not, for a period of thirteen (13) months
following his termination of employment with the Company and all CBI
Affiliates for any reason, for himself or as agent, partner or employee of
any person, corporation or firm, directly or indirectly, engage in services
of the type provided by the Company for:
(1) any client of the Company or a CBI Affiliate for whom the
Employee performed services, as determined by the Chief Operating
Officer of ▇▇▇▇▇/▇▇▇▇▇▇, Inc., or supervised the performance of
services,
(2) any prospective client of the Company or a CBI Affiliate to
whom the Employee submitted, or assisted in the submission of, a
proposal, during the eighteen (18) month period preceding his
termination, or
(3) any client about whom Employee learned Confidential
Information.
(ii) The Employee shall not, at any time during which he is an
employee of the Company or another CBI Affiliate and for thirteen (13)
months after his termination with the Company and all CBI Affiliates for
any reason, whether for his own account or for the account of any person
other than a CBI Affiliate, directly or indirectly, endeavor to solicit
away from the Company or a CBI Affiliate, or facilitate the solicitation
away from the Company or a CBI Affiliate of, any client of the Company or a
CBI Affiliate or induce same to limit, alter or reduce its relationship
with the Company.
(iii) The Employee shall not, at any time during which he is an
employee of the Company or another CBI Affiliate and for thirteen (13)
months after his termination for any reason from the Company and all CBI
Affiliates, whether for his own account or for the account of any person
other than a CBI Affiliate, directly or indirectly, induce away from the
Company or a CBI Affiliate, or facilitate the inducement away from the
Company or a CBI Affiliate of, any personnel of the Company or a CBI
Affiliate or interfere with the faithful discharge by such personnel of
their contractual and
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fiduciary obligations to serve the Company's or a CBI Affiliate's interests
and those of its clients of undivided loyalty.
(iv) The Employee agrees that, for a period of five (5) years after
the Closing Date of the Purchase Agreement (Exhibit F), the Employee shall
not promote, market, solicit, or sell any product or service, including
without any limitation, any life insurance or other insurance product or
policy, similar to or competitive with CBI or any of its divisions'
programs ("CBI Program") to any of the clients listed on Exhibit G hereto.
(b) "Client" as used in this Section 12 shall mean any person or
entity for whom the Company or a CBI Affiliate performed services or provided
products within the twelve (12) months immediately preceding the termination of
the Employee's employment with the Company and all CBI Affiliates.
13. Confidential Information. Employee shall abide by the terms of the
Company's standard Intellectual Property and Confidentiality Agreement, which is
attached hereto as Exhibit A.
14. Property of the Company. The Employee acknowledges that from time to
time in the course of providing services pursuant to this Agreement he shall
create or have the opportunity to inspect and use certain property, both
tangible and intangible, of the Company and the Employee hereby agrees that such
property shall remain the exclusive property of the Company, and the Employee
shall have no right or proprietary interest in such property, whether tangible
or intangible, including, without limitation, the Employee's customer and
supplier lists, contract forms, books of account, computer programs and similar
property.
15. Equitable Relief. The Employee acknowledges that the services to be
rendered by him are of a special, unique, unusual, extraordinary, and
intellectual character, which gives them a peculiar value, and the loss of which
cannot reasonably or adequately be compensated in damages in an action at law,
and that a breach by him of any of the provisions contained in this Agreement
will cause the Company irreparable injury and damage. The Employee further
acknowledges that he possesses unique skills, knowledge and ability and that
competition by him in violation of this Agreement or any other breach of the
provisions of this Agreement would be extremely detrimental to the Company. By
reason thereof, the Employee agrees that the Company shall be entitled, in
addition to any other remedies it may have under this Agreement or otherwise, to
injunctive and other equitable relief to prevent or curtail any breach of this
Agreement by him.
16. Assignment. The Company may assign its rights under this Agreement to
any successor in interest, whether by merger, consolidation, sale of assets or
otherwise. This Agreement is personal to the Employee and may not be assigned in
any way by the Employee without the prior written consent of the Company.
17. Severability and Reformation. The parties hereto intend all provisions
of this Agreement to be enforced to the fullest extent permitted by law. If,
however, any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future law, such
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provision shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid, or unenforceable provision were never a
part hereof, and the remaining provisions shall remain in full force and effect
and shall not be affected by the illegal, invalid, or unenforceable provision or
by its severance. Further, if any provision is held to be overbroad, a court may
modify that provision to the extent necessary to make the provision enforceable
according to applicable law and enforce the provision as modified.
18. Integrated Agreement. This Agreement constitutes the entire Agreement
between the parties hereto with regard to the subject matter hereof, and there
are no agreements, understandings, specific restrictions, warranties or
representations relating to said subject matter between the parties other than
those set forth herein, specifically referenced herein or otherwise herein
provided for.
19. Notices. All notices and other communications required or permitted to
be given hereunder shall be in writing and shall be deemed to have been duly
given if delivered personally, mailed by certified mail (return receipt
requested) or sent by overnight delivery service, cable, telegram, facsimile
transmission or telex to the parties at the following addresses or at such other
addresses as shall be specified by the parties by like notice:
If to the Company:
▇▇▇▇▇/▇▇▇▇▇▇, Inc.
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇. ▇▇▇▇▇▇ ▇. ▇▇▇▇
Chief Operating Officer and Chief Financial Officer
With a copy in the event of notice to the Company or CBI to:
Vedder, Price, ▇▇▇▇▇▇▇ and Kammholz, P.C.
▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: Lane ▇. ▇▇▇▇▇, Esq.
If to Employee:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Notice so given shall, in the case of notice so given by mail, be deemed to
be given and received on the fourth calendar day after posting, in the case of
notice so given by overnight delivery service, on the date of actual delivery
and, in the case of notice so given by cable, telegram, facsimile transmission,
telex or personal delivery, on the date of actual transmission or, as the case
may be, personal delivery.
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20. Further Actions. Whether or not specifically required under the terms
of this Agreement, each party hereto shall execute and deliver such documents
and take such further actions as shall be necessary in order for such party to
perform all of his or its obligations specified herein or reasonably implied
from the terms hereof.
21. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAW, AND NOT THE LAW OF CONFLICTS, OF THE STATE OF
ILLINOIS.
22. Application of Terms. Whenever used herein the terms ▇▇▇▇▇/▇▇▇▇▇▇, Inc.
▇▇▇▇▇/▇▇▇▇▇▇ Consulting, Inc., (or any abbreviations thereof) shall include all
affiliates and successors thereof.
23. Counterparts. This Agreement may be executed in counterparts, each of
which will take effect as an original and all of which shall evidence one and
the same Agreement.
24. Arbitration. Without limiting the right of the Company or the Employee
to seek equitable relief to prevent irreparable injury, any dispute arising out
of or relating to this Agreement or the breach, termination or validity thereof,
which has not been resolved by agreement within 60 days after written notice
thereof by the affected Party shall be settled by arbitration in accordance with
the then current Center for Public Resources Rules for Non-Administered
Arbitration of Business Disputes, by a sole arbitrator. The arbitration shall be
governed by the United States Arbitration Act, 9 U.S.C. ss. 1-16, and judgment
upon the award rendered by the arbitrator may be entered by any court having
jurisdiction thereof. The place of arbitration shall be Chicago, Illinois. The
arbitrator is not empowered to award damages in excess of compensatory damages
and each Party hereby irrevocably waives any right to recover such damages with
respect to any dispute resolved by arbitration.
[signature page follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the Effective Date.
▇▇▇▇▇/▇▇▇▇▇▇, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇
Chief Operating Officer
Dated:
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EMPLOYEE:
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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