Employment and Non Competition Agreement - Interactive Pictures Corp. and Steven Hicks
EMPLOYMENT AND NON COMPETITION AGREEMENT
THIS AGREEMENT is made and entered into this 7TH day of JANUARY, 2000,
by and between Interactive Pictures Corporation (IPIX) having its principal
place of business at 1009 Commerce Park Drive, Oak Ridge, TN 37830, hereinafter
referred to as the "Employer", and STEVEN HICKS whose present address is 4110
TOWANDA TRAIL, KNOXVILLE, TENNESSEE 37919 hereinafter referred to as the
"Employee".
1. EMPLOYMENT. The Employer hereby agrees to employ the Employee and
Employee hereby accepts employment with the Employer in the capacity of
EXECUTIVE VICE PRESIDENT, STRATEGY AND CHIEF KNOWLEDGE OFFICER upon the
terms and conditions set out herein.
2. TERM. The term of this Agreement shall begin on FEBRUARY 14, 2000, and
shall continue indefinitely unless notification of either party of a
change in the employment status under the guidelines of paragraph 12 or
13.
3. COMPENSATION. The Employer shall pay the Employee, as compensation for
the services rendered by the Employee, a starting salary of TEN
THOUSAND FOUR HUNDRED AND SIXTEEN DOLLARS AND SIXTY-SEVEN CENTS
($10,416.67), per paycheck, payable bi-monthly on the 15th and the
30th. Salary payments shall be subject to withholding and other
applicable taxes. Compensation will be reviewed on a regular basis per
corporate policies. Expectation is for a 40 hour work week with
vacation and holidays described by the benefits plan.
4. DUTIES. The Employee shall perform for the Employer, the duties set out
in the attached Exhibit "A".
5. EXTENT OF SERVICES. The Employee shall devote his entire time,
attention and energies to the Employer's business and shall, not,
during the term of this Agreement, be engaged in any other business
activity, whether or not such business activity is pursued for gain,
profit or other pecuniary advantage without written approval of the
Employer. The Employee further agrees that he will perform all of the
duties assigned to him to the best of his ability and in the manner
satisfactory to the Employer, that he will truthfully and accurately
maintain all records, preserve all such records and make all such
reports as the Employer may require; that he will fully account for all
money and all of the property of the Employer of which he may have
custody and will pay over and deliver the same whenever and however he
may be directed to do so. Services will be appraised on an annual basis
through a corporate employee appraisal system.
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6. DISCLOSURE OF INFORMATION. The Employee agrees not to disclose to
anyone, either during or after his employment, any confidential
information obtained by him as a result of his employment by the
Employer without the consent of the Employer in writing. He further
agrees that, on leaving his employment, he will not take with him,
without permission of the Employer in writing, any drawing, blueprint,
or other reproduction, customer names, price list, plans, names of
operation processes, nor any material of any kind including, but not
limited to, software and electronic designs. Unless specifically
prohibited by statutory law, the Employee agrees that, in the event of
a breach or threatened breach by the Employee of the provisions of this
paragraph, the Employer shall be entitled to a temporary restraining
order and a preliminary injunction restraining the Employee from
disclosing, in whole or in part, the list of the Employer's customers,
or from rending any services to any person, firm, corporation,
association or other entity to whom such list, in whole or in part, has
been disclosed or is threatened to be disclosed. Nothing herein shall
be construed as prohibiting the Employer from pursuing any other
remedies available to the Employer for such breach or threatened
breach, including recovery of damages from the Employee.
7. COVENANT NOT TO COMPETE. In recognition of Employee's acknowledgment
that his services to be rendered to IPIX are of a special and unusual
character which have a unique value to Employer, the loss of which
cannot adequately be compensated by damages in action at law; in view
of (1) the unique value to Employer of the services of Employee for
which Employer has employed Employee; and (2) the confidential
information to be obtained by or disclosed to Employee as an employee
of Employer; and as a material inducement to Employer to employ
Employee and to pay to Employee the compensation for such services to
be rendered to Employer by Employee (it being understood and agreed by
the parties hereto that such compensation shall also be paid and
received in consideration hereof), Employee covenants and agrees as
follows:
(i) PERIOD OF COVENANT. the period of this non-competition
covenant shall begin on the date hereof and shall terminate on
the second anniversary following the termination of Employee's
employment (whether or not such employment is pursuant tot his
Agreement) with this Employer or on the second anniversary
following the date the Employee fully complies with the terms
of this non-competition covenant, whichever is longer (the
"Non-competition Period").
(ii) NATURE AND AREA OF COMPETITION. Employee agrees that for
the Non-competition Period, through the world, he shall not,
directly or indirectly, as owner or operator of any
corporation, partnership, association or agency or as
employee, agent, consultant or independent contractor, engage
in the business of designing or selling video immersive
imaging or telerobotic devices ("Competitive Business").
Employee hereby warrants that the execution of this Agreement
shall not violate any other agreements previously entered into
by Employee.
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(iii) SOLICITATION. Employee agrees that during the
Non-competition Period he will not directly or indirectly, on
behalf of himself or on behalf of any person, firm,
partnership, corporation, association, or entity,
(1) Call upon any of the customers of Employer who
are such at the time of Employee's termination for
the purpose of soliciting or providing any
Competitive Business;
(2) Call upon any of the other employees or
representatives of Employer who are such at the time
of Employee's termination for the purpose of
soliciting or inducing such employees or
representatives to discontinue their relationship
with Employer or to establish a relationship with
Employee;
(3) Call upon any providers of data to the Company's
database for the purpose of obtaining data for any
Competitive Business; or
(4) Solicit, divert or take away or attempt to
solicit, divert or take away any of the customers,
clients, business or patrons of Employer or the other
employees or representatives maintaining a
relationship with Employer who are such at the time
of Employee's termination.
(iv) ACCOUNTING FOR PROFITS. Employee covenants and agrees
that, if he shall violate any of his covenants or agreements
under this Agreement, Employer shall be entitled to an
accounting and repayment of all profits, compensation,
commissions, remunerations or benefits which Employee directly
or indirectly has realized and/or may realize as a result of,
growing out of or in connection with any such violation; such
remedy shall be in addition to and not in limitation of any
injunctive relief or other rights or remedies to which
Employer is or may be entitled at law or in equity or under
this Agreement.
(v) REASONABLENESS OF RESTRICTIONS. Employee has
carefully read and considered the provision of this Section 7
and, having done so, agrees that the restrictions set forth in
such Section (including, but not limited to, the time period
or restriction and the geographical areas of restriction set
forth in this Section 7) are fair and reasonable and are
reasonably required for the protection of the interests of
IPIX, its officers, directors and other employees.
In the event that, notwithstanding the foregoing, any
part of the covenants set forth in this Section 7 shall be
held to be invalid or unenforceable, the remaining parts
thereof shall nevertheless continue to be valid and
enforceable s though the invalid or unenforceable parts had
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not been included therein. In the event that any provision of
this Section 7 relating to time period and/or areas of
restriction shall be declared by a court of competent
jurisdiction to exceed the maximum time period and/or areas
such court deems reasonable and enforceable, said time period
and/or areas of restriction shall be deemed to become and
thereafter be the maximum time period and/or areas which such
court deems reasonable and enforceable.
(vi) INJUNCTION. In the event of a breach or threatened
breach by Employee of the provisions of this Agreement,
Employer shall, in addition to any other rights and remedies
available to it, at law or otherwise, be entitled to an
injunction to be issued by any court of competent jurisdiction
enjoining and restraining Employee from committing any
violation of this Agreement.
(vii) COSTS. Should it become necessary for Employer to
file suit to enforce the covenants contained herein, the
prevailing party shall be entitled to cover, in addition to
all other damages provided for herein, the costs incurred in
conducting the suit including a reasonable attorney's fee.
8. NOTICES. Any notice required or desired to be given under this
Agreement shall be given in writing, sent by certified mail, return
receipt requested, to his residence in the case of the Employee, or to
its principal place of business, in the case of Employer.
9. WAIVER OF BREACH. The waiver by Employer of a breach of any provision
of this Agreement by the Employee shall not operate or be construed as
a waiver of any subsequent breach by the Employee. No waiver shall be
valid unless in writing and signed by Employer.
10. ASSIGNMENT. The Employee acknowledges that the services to be rendered
by him are unique and personal. Accordingly, the Employee may not
assign any of his rights or delegate any of his duties or obligations
under this Agreement. The rights and obligations of the Employer under
this Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of the Employer.
11. TERMINATION UPON SALE OF BUSINESS. Notwithstanding anything to the
contrary, the Employer may terminate this Agreement upon twenty-one
(21) says notice to the Employee upon the happening of any of the
following events:
a. The sale of the Employer's business or substantially all of
its assets to a single purchaser or to a group of associated
purchasers;
b. The sale, exchange or other disposition, in one transaction,
of at least a fifty (50%) percent interest in the Employer's
business;
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c. The merger or consolidation of the Employer's business in a
transaction in which the owners of the business receive less
than a fifty (50%) percent interest in the new or continuing
operation.
12. TERMINATION WITHOUT CAUSE. The Employer may terminate this Agreement
without cause at any time upon fourteen (14) days written notice to the
Employee. In such event, the Employee, if requested by the Employer,
shall continue to render his services, and shall be paid his regular
compensation and earned vacation up to and to the date of termination
and, in addition, there shall be paid to the Employee, on the date of
termination, a severance allowance equal to sixth months' base
compensation. If iPIX headquarters is relocated to another region of
the country and you opt not to relocate and as a result, you terminate
your employment, you will receive six months base compensation. The
Employee may terminate this Agreement without cause upon fourteen (14)
days written notice to the Employer. The Employee shall continue to
render his services and shall be paid hs regular compensation and
earned vacation days up to the date of termination.
13. TERMINATION WITH CAUSE. Employment terminated for cause - as used
herein, "for cause" shall mean dishonesty, fraud, gross neglect or
gross malperformance of duty, intentional damage to substantial
property of Employer, conviction of a crime involving moral turpitude
or the performance of any act materially detrimental to the interest of
Employer which was intended by the Employee to have such affect. In
such event, no severance allowance shall be paid to the Employee; but
the Employee shall continue to render services and shall be paid his
regular compensation and earned vacation days up to the date of
termination.
14. ENTIRE AGREEMENT. This Agreement contains the entire understanding of
the parties. It may be changed only by an Agreement in writing, signed
by the parties hereto.
15. GOVERNING LAW. This agreement, and all transactions contemplated
hereby, shall be governed by, construed and enforced in accordance with
the laws of the State of California. The parties herein waive trial by
jury and agree to submit to the personal jurisdiction and venue of a
court of subject matter jurisdiction located in the State of
California. In the event that litigation results from or arises out of
this Agreement or the performance thereof, the parties agree to
reimburse the prevailing party's reasonable attorney's fees, court
costs, and all other expenses, whether or not taxable by the court as
costs, in addition to any other relief to which the prevailing party
may be entitled. In such event, no action shall be entertained by said
court or any court of competent jurisdiction if filed more than one
year subsequent to the date the cause (s) of action actually accrued
regardless of whether damages were otherwise as of said time
calculable.
16. INDEMNITY. The Employer shall indemnify the Employee and hold him
harmless for any acts or decisions made by him in good faith while
performing services for
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the Employer and will use its best efforts to obtain coverage for the
Employee under any insurance policy now in force or hereinafter
obtained during the term of this Agreement covering the other officers,
and/or employees of the Employer against lawsuits
17. WORKING FACILITIES. The Employee shall be provided such other
facilities and services as are suitable to his position and appropriate
for the performance of his duties.
18. CONTRACTUAL PROCEDURES. Unless specifically disallowed by law, should
litigation arise hereunder, service of process, therefore, may be
obtained through certified mail, return receipt requested; the parties
hereto waiving any and all rights they may have to object to the method
by which service was perfected.
19. BENEFITS. The Company provides extensive benefits in accordance with
the policies established by the Board of Directors. These benefits
reviewed annually by the Board of Directors and may be modified,
amended, altered, discontinued or canceled at any time in the
discretion of the Board of Directors and without breaching this
contract. Exhibit "B" give the present benefits program in effect at
the time of employment.
20. ASSIGNMENT.
In consideration of my employment by IPIX and the wages, salaries and
other benefits which I will acquire, I agree:
(a) To assign and transfer to IPIX all right, title and interest
to all inventions, discoveries or improvements, patentable or
unpatentable, conceived or made by me, either alone or with
others, during the period of my employment which fall within
or arise out of the nature of my employment, arise as a result
of my employment or fall within or arise out of the fields of
business, work or investigation of IPIX and to make and
maintain adequate and current written records of all of the
foregoing; and
(b) To execute any and all instruments and do all things which
IPIX deems necessary to vest and maintain and protect and
enforce in IPIX the entire right, title and interest to all
such inventions, discoveries and improvements in any and all
countries at IPIX's request and without additional
remuneration to me.
21. WAIVER.
Failure to insist upon strict compliance with any provision hereof
shall not be deemed a waiver of such provision or any other provision hereof.
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22. MODIFICATION.
This Agreement may not be modified except by an agreement in writing
executed by the parties hereto. The invalidity or unenforceability of
any provision hereof shall not affect the validity or enforceability of
any other provision.
IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT ON THIS
__26___ DAY OF __JANUARY____, 2000.
"EMPLOYER":
Interactive Pictures Corporation
By: /Joseph Viglione/
-------------------------------
Joseph Viglione
Vice President, Administration
"EMPLOYEE":
/Steven Hicks/
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Steven Hicks
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EXHIBIT A
Job Description: Executive Vice President, Strategy and
Chief Knowledge Officer
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EXHIBIT B
MEDICAL INSURANCE
Physician services require $15 co-pay within the network. A $500 deductible (3x
family) applies toward all expenses not covered by the plan, 100% coverage after
deductible is met. The Company covers the total cost of the employee and 75% of
dependent coverage. The remaining 25% of dependent coverage is paid through
payroll deduction.
DENTAL/VISION INSURANCE
Dental and vision insurance is provided at no cost to the employee. There is a
$15 a month charge for dental coverage and a $10 a month charge for vision
coverage for dependents.
DISABILITY INSURANCE
The Company provides Short-term and Long-term Disability insurance at no cost to
the employee. Short-term insures up to 90 days of the disability with benefit
based on years of service. Long-term takes effect after 90 calendar days of
disability. It pays 60% of salary up to $5,000 per month until age 70.
LIFE INSURANCE
The Company insures, with no cost to the employee, at a rate of 2 x base salary.
PAID LEAVE
Nine Corporate holidays are observed during the year. Vacation may be used after
3 months of employment at a rate of 12 days from 1-4 years, 15 days after 5-9
years and 20 days after 10 or more years of service.
EDUCATION/PROFESSIONAL DEVELOPMENT BENEFITS
The Company offers assistance to employees and their dependents for
reimbursement of educational expenses up to $1,000 a year up to 5 years of
service.
PROFESSIONAL SOCIETY MEMBERSHIP
The Company encourages active participation in professional societies and will
fund 50% of the membership fees in any related professional society.
RETIREMENT 401K PLAN
The Company provides a pre-retirement savings plan one the employee has
completed six months of service. The plan allows the employee to defer up to 16%
of the associates salary and the Company matches $.65 on each dollar you
contribute up to 6.15% with vesting after 3 years.
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