Change of Control Agreement - Oilgear Co. and Thomas J. Price
THE OILGEAR COMPANY
CHANGE OF CONTROL AGREEMENT
This AGREEMENT (the "Agreement") is made as of the eighth day of
December, 2003, by and between THE OILGEAR COMPANY, a Wisconsin corporation (the
"Company") and Thomas J Price (the "Executive").
The Executive and the Company recognize that the Executive is currently
an "at will" employee of the Company. The Board of Directors of the Company (the
"Board") has determined that it is in the best interests of the Company and its
shareholders to assure that the Company will have the continued dedication of
the Executive, notwithstanding the possibility, threat or occurrence of a Change
of Control (as defined below) of the Company.
This Change of Control Agreement is designed to provide the Executive
with certain compensation and benefits upon a Change in Control. During the term
of this Agreement, but prior to the Effective Date (as defined below), the
Executive's employment may be terminated by either the Executive or the Company
at any time in which case neither the Executive nor the Company shall have any
rights under this Agreement. From and after the Effective Date, this Agreement
shall be fully effective between the parties with respect to the subject matter
hereof.
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1. Certain Definitions.
(a) The "Effective Date" shall mean the first date during the term of
this Agreement (as defined in Section 1(b)) on which a Change of Control (as
defined in Section 2) occurs. Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive's employment
with the Company or this Agreement is terminated by the Company prior to the
date on which the Change of Control occurs, and if it is reasonably demonstrated
by the Executive that such termination of employment or of this Agreement (i)
was at the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a specific identified Change of Control, then for all purposes
of this Agreement the "Effective Date" shall mean the date immediately prior to
the date of such termination of employment or purported termination of this
Agreement.
(b) The term of this Agreement shall be the period commencing on the
date hereof and ending on December 31, 2005; provided, however, that commencing
on December 31, 2004, and on each annual anniversary of such date (such date and
each annual anniversary thereof shall be hereinafter referred to as the "Renewal
Date"), unless previously terminated, the term of the agreement shall be
automatically extended so as to terminate two years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company's Board of
Directors has elected not to extend the the Agreement and has given written
notice to the Executive.
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2. Change of Control. For the purpose of this Agreement, a "Change of
Control" shall be deemed to have occurred if and when: (a) any 'person' (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934), other than the Company or any of its subsidiaries, the Oilgear Stock
Retirement Plan, the Oilgear Salaried Savings Plus Plan, or any other qualified
or non-qualified plan maintained by the Company or any of its affiliates, is or
becomes a beneficial owner (as defined in Rule 13d-3 promulgated under such
Act), directly or indirectly, of securities of the Company representing 50% or
more of the combined voting power of the Company's then outstanding securities,
(b)at any time less than a majority of the members of the Company Board shall be
persons who were either nominated for election by the Board (prior to any Change
in Control) or were elected by the Board (prior to any Change in Control), (c)
the Company sells, leases or otherwise transfers all or substantially all of its
assets not in the ordinary course of business to another person or party, (d)
the Company is combined (by merger, consolidation or otherwise) with another
corporation and as a result of such combination, less than 50% of the
outstanding securities of the surviving or resulting corporation are owned in
the aggregate by the immediate former shareholders of the Company.
3. Employment Period. The Company hereby agrees to continue the
Executive in its employ, and the Executive hereby agrees to remain in the employ
of the Company subject to the terms and conditions of this Agreement, for the
period commencing on the Effective Date and ending on the first anniversary of
such date; provided, however, that on each anniversary of the Effective Date the
term of the Agreement shall automatically be extended for an additional one-year
period (restoring the initial one-year term), unless either party notifies the
other party in writing at least 60 days prior to such anniversary. The term of
employment under this Agreement as effective from time to time shall be referred
to as the "Employment Period."
4. Terms of Employment.
(a) Position and Duties.
(i) During the Employment Period, [a] the Executive's
position (including status, offices, titles and reporting requirements),
authority, duties and responsibilities shall be at least commensurate in all
material respects with the most significant of those held, exercised and
assigned at any time during the 120-day period immediately preceding the
Effective Date and [b] the Executive's services shall be performed at the
location where the Executive was employed immediately preceding the Effective
Date or any office or location less than 60 miles from such location (the
"Geographical Employment Area").
(ii) During the Employment Period, and excluding any
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Executive hereunder, to use the
Executive's reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to [a] serve on corporate, civic or charitable
boards or committees, [b] deliver lectures, fulfill speaking engagements or
teach at educational institutions and [c] manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance
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with this Agreement. It is expressly understood and agreed that to the extent
that any such activities have been conducted by the Executive prior to the
Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective Date
shall not thereafter be deemed to interfere with the performance of the
Executive's responsibilities to the Company.
(b) Compensation.
(i) Base Salary. During the Employment Period, the
Executive shall receive an annual base salary ("Annual Base Salary") at least
equal to base salary paid or payable, including any base salary which has been
earned but deferred, to the Executive by the Company and its affiliated
companies as reflected on the Company's records immediate prior to the Effective
Date and immediately prior to entering into an agreement with any other party
that could lead to a Change in Control, without regard to any temporary salary
adjustment, such as a temporary salary reduction. During the Employment Period,
the Annual Base Salary shall be reviewed at least annually for possible
increase. Any increase in Annual Base Salary shall not serve to limit or reduce
any other obligation to the Executive under this Agreement. Annual Base Salary
shall not be reduced after any such increase and the term Annual Base Salary as
utilized in this Agreement shall refer to Annual Base Salary as so increased. As
used in this Agreement, the term "affiliated companies" shall include any
company controlled by, controlling or under common control with the Company.
(ii) Annual Bonus. In addition to Annual Base Salary,
the Executive shall be eligible to participate in any bonus plan sponsored by
the Company, on a basis consistent with that of other comparable employees.
(iii) Welfare Benefit Plans. During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent applicable
generally to other peer executives of the Company and its affiliated companies.
(iv) Other Benefits. During the Employment Period,
the Executive shall be entitled to participate in all fringe benefit, expense
reimbursement, vacation, company car or car allowance, as applicable (if
Executive was receiving such benefit prior to the Change of Control), incentive,
savings and retirement plans, practices, policies and programs applicable
generally to other peer executives of the Company and its affiliated companies,
but in no event shall such plans, practices, policies and programs provide the
Executive with less favorable benefits, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at any
time during the 120-day period immediately preceding the Effective Date.
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5. Termination of Employment.
(a) Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance with
Section 13(b) of this Agreement of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective on the 30th day after receipt of such notice by the
Executive (the "Disability Effective Date"), provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. For purposes of this Agreement,
"Disability" shall mean the absence of the Executive from the Executive's duties
with the Company on a full-time basis for 180 consecutive business days as a
result of incapacity due to mental or physical illness which is determined to be
total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive's legal representative (such
agreement as to acceptability not to be withheld unreasonably).
(b) Cause. The Company may terminate the Executive's
employment during the Employment Period for Cause. For the sole and exclusive
purposes of this Agreement, the termination of Executive's employment will be
deemed for "Cause" only if:
(i) such termination is due to the Executive's fraud
or criminal conduct that is materially injurious to the financial condition or
business reputation of the Company or any of its subsidiaries or affiliates; or
(ii) the Executive has materially and willfully
breached his or her responsibilities or willfully failed to comply with
reasonable policies of the Company's Board of Directors; but, in each case, only
if the Company has given the Executive written notice specifying the breach or
failure to comply complained of, demanding that the Executive remedy such breach
or failure to comply and affording the Executive an opportunity to be heard in
connection therewith, and the Executive either failed to remedy such alleged
breach or failed to comply within 30 days from receipt of such written notice or
failed to take all reasonable steps to that end during such 30-day period and
thereafter.
For purposes of this provision, no act or failure to act, on the part
of the Executive, shall be considered "willful" unless it is done, or omitted to
be done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer or
a senior officer of the Company or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company. The cessation
of employment of the Executive shall not be deemed to be for Cause unless and
until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity,
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together with counsel, to be heard before the Board), finding that, in the good
faith opinion of the Board, the Executive is guilty of the conduct described in
subparagraph (i) or (ii) above, and specifying the particulars thereof in
detail.
(c) Good Reason. The Executive's employment may be terminated
by the Executive for Good Reason. For the sole and exclusive purposes of this
Agreement, "Good Reason" shall exist, only if, without Executive's express
written consent:
(i) There is a diminution of the Executive's assigned
duties and responsibilities including, without limitation, any removal of the
Executive's title(s), reporting responsibilities or any diminution of the powers
associated with such position. The Executive must deliver written notice to the
Company specifying the diminution in assigned duties that the Executive believes
justifies such termination, and the Company must fail to reverse the same or to
take all reasonable steps to that end within 30 days of receiving such notice;
(ii) The Company reduces the Executive's salary below
that in effect as of the Effective Date;
(iii) The Company requires the Executive to relocate
Executive's principal business office or his principal place of residence
outside the Geographical Employment Area or assigns to Executive duties that
would require such relocation;
(iv) The Company requires the Executive, or assigns
duties to the Executive that would require Executive, to spend more than sixty
normal working days away from the Geographical Employment Area during any
consecutive twelve-month period;
(v) The Company fails to continue in effect any cash
or stock-based incentive or bonus plan, retirement plan, welfare benefit plan,
or other benefit plan, unless the aggregate value to the Executive of all such
compensation, retirement and benefit plans provided to the Executive is not less
than their aggregate value as of the date of the Agreement (or as of the Change,
if greater);
(vi) The delivery by the Company of a notice of
non-renewal pursuant to Section 3 hereof; or
(vii) There is a reasonable determination by the
Executive that as a result of a significant change in management philosophy that
he is in a situation inconsistent with his reasonable professional goals. The
Executive must deliver written notice to the Company specifying the changes in
management philosophy and the reasons that the Executive believes such changes
justifies such termination, and the Company must fail to remedy the same within
30 days of receiving such notice.
For purposes of this Section 5(c), any good faith determination of "Good Reason"
made by the Executive shall be conclusive.
(d) Notice of Termination. Any termination by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 13(b) of
this Agreement. For purposes of this
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Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated, and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than thirty days after the giving
of such notice). The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive's or the
Company's rights hereunder.
(e) Date of Termination. "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the
Executive of such termination, and (iii) if the Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of death of the Executive or the Disability Effective Date, as the case
may be.
6. Obligations of the Company upon Termination.
(a) Good Reason; Other Than for Cause, Death or Disability.
If, during the Employment Period, the Company shall terminate the Executive's
employment other than for Cause, death or Disability or the Executive shall
terminate employment for Good Reason:
(i) The Company shall pay to the Executive in a lump
sum in cash within 15 days after the Date of Termination the Executive's Annual
Base Salary through the Date of Termination to the extent not theretofore paid
(the "Accrued Compensation").
(ii) The Company shall pay to the Executive in a lump
sum in cash within 30 days after the Date of Termination an amount equal to two
(2) times his gross annual compensation. For this purpose, the Executive's gross
annual compensation shall be equal to the sum of [a] Executive's base salary at
the time of termination, without regard to any temporary salary adjustment, such
as a temporary salary reduction, [b] the average of the bonus paid to Executive
in the five calendar years immediately prior to the Date of Termination, and [c]
the full value of all perquisites provided to Executive in the calendar year
immediately prior to the Effective Date, including Company automobile, club
dues, stock purchase plan forgiveness and tax preparation. One-fourth of the
amount payable under this Section 6(a)(ii) (the "Non-Compete Payment") shall be
deemed to be allocable to compliance with the covenants applicable to Executive
contained in Section 9 (Confidential Information), Section 10 (Agreement Not to
Solicit Employees) and Section 11 (Non-competition and Inventions). In the event
of Executive's breach of any of these provisions, the Executive shall be
required to remit the Non-Compete Payment to the Company in full within ten (10)
business days following a good faith determination by the Company that such a
breach has occurred.
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(iii) For three years after the Executive's Date of
Termination, or until Executive attains age sixty-five, whichever is earlier,
the Company shall continue to provide medical, dental and vision benefits to the
Executive and/or the Executive's family that are at least equal to those which
would have been provided to them in accordance with the plans, programs,
practices and policies described in Section 4(b)(iii) of this Agreement if the
Executive's employment had not been terminated and at a cost which does not
exceed the amount Executive paid for such coverage immediately prior to the
Effective Date, provided, however, that if the Executive becomes reemployed with
another employer and is eligible to receive medical benefits under another
employer provided plan, the medical benefits described herein shall be
terminated;
(iv) The Company shall, at its sole expense as
incurred, provide the Executive with outplacement services, the scope and
provider of which shall be selected by the Company in its sole discretion; and
(v) To the extent not theretofore paid or provided,
the Company shall timely pay or provide to the Executive any other amounts or
benefits required to be paid or provided or which the Executive is eligible to
receive under any plan, program, policy or practice or contract or agreement of
the Company and its affiliated companies (such other amounts and benefits shall
be hereinafter referred to as the "Other Benefits").
(b) Death. If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Compensation and the timely payment or provision of Other Benefits. Accrued
Compensation shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect to other
peer executives and their beneficiaries at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.
(c) Disability. If the Executive's employment is terminated by
reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Compensation and the timely payment or provision of
Other Benefits. Accrued Compensation shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination. With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this Section
6(c) shall include, and the Executive shall be entitled after the Disability
Effective Date to receive, disability and other benefits at least equal to the
most favorable of those generally provided by the Company and its affiliated
companies to disabled executives and/or their families in accordance with such
plans, programs, practices and policies relating to disability, if any, as in
effect generally with
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respect to other peer executives and their families at any time during the
120-day period immediately preceding the Effective Date or, if more favorable to
the Executive and/or the Executive's family, as in effect at any time thereafter
generally with respect to other peer executives of the Company and its
affiliated companies and their families.
(d) Cause; Other than for Good Reason. If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (i) his Annual Base Salary through
the Date of Termination, and (ii) Other Benefits, in each case to the extent
theretofore unpaid. If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Compensation and the timely payment or provision of Other Benefits. In
such case, all Accrued Compensation shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.
7. Nonexclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive's continuing or future participation in any plan, program,
policy or practice provided by the Company or any of its affiliated companies
and for which the Executive may qualify, including the SERP, Key Employee Stock
Purchase Plan, Deferred Health Care Credits and Deferred Directors Fee Plan, nor
shall anything herein limit or otherwise affect such rights as the Executive may
have under any contract or agreement with the Company or any of its affiliated
companies. Amounts which are vested benefits or which the Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any
contract or agreement with the Company or any of its affiliated companies at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement except as explicitly
modified by this Agreement.
8. Full Settlement. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. The Executive shall not be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement.
9. Confidential Information.
(a) Non-Disclosure. During Executive's employment or at any
time thereafter, irrespective of the time, manner or cause of the termination of
this Agreement, Executive will not directly or indirectly, reveal, divulge,
disclose or communicate to any person or entity other than authorized officers,
directors and executives of Employer, in any manner whatsoever, any Confidential
Information (as hereinafter defined) of Employer without the prior written
consent of the Employer, except in connection with the fulfillment of his duties
hereunder.
(b) Definition. As used herein, "Confidential Information"
means information disclosed to or known by Executive as a direct or indirect
consequence of or through his association with Employer and its subsidiaries and
affiliates, about Employer or any subsidiary
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or affiliate of Employer, their businesses, products and practices, including
but not limited to trade secrets, know-how, technical information, and financial
information, which information is not generally known in the business in which
Employer or any subsidiary of Employer is or may become engaged. However,
Confidential Information shall not include any information which is (i)
available to the public from a source other than Executive, (ii) released in
writing by Employer to the public or to persons who are not under a similar
obligation of confidentiality to Employer and who are not parties to this
Agreement, (iii) obtained by Executive from a third party not under a similar
obligation of confidentiality to Employer, or (iv) required to be disclosed by
any reporting requirements of NASDAQ, the SEC, court process or any other
government or agency or department of any government.
(c) Return of Property. Upon termination of Executive's
employment, Executive will surrender to Employer all Confidential Information,
including without limitation, all lists, charts, schedules, reports, financial
statements, books and records of Employer and all subsidiaries and affiliates of
Employer, and all copies thereof, and all other property belonging to Employer
and all subsidiaries and affiliates of Employer, provided that Executive shall
be accorded reasonable access to such materials subsequent thereto for any
proper purpose as determined in the reasonable judgment of Employer.
10. Agreement Not to Solicit Employees. Executive agrees that, for a
period of one year following the termination of the employment, neither he nor
any affiliate shall, either alone or on behalf of any business, solicit or
induce, or in any manner attempt to solicit or induce, any person employed by,
or an agent of, Employer or any subsidiary of Employer to terminate his
employment or agency, as the case may be, with the Employer or such subsidiary
provided Executive further agrees that, for a period of one year following the
termination of employment, neither he nor any affiliate shall either act on
behalf of any business engaged in a business competitive with Employer or
subsidiary, solicit or induce in any manner or attempt to solicit or induce any
person hired by Executive as an employee of or agent of Employer or any
subsidiary of Employer to terminate his employment or agency as the case may be
with Employer or such subsidiary.
11. Non-competition and Inventions.
(a) During the period of employment of Executive and for a
period of one year after Executive's termination of employment for any reason,
Executive shall not directly or indirectly as a principal, agent, owner,
employee, consultant, advisor, trustee, beneficiary, distributor, partner,
co-venturer, officer, director, stockholder or in any other capacity, nor will
any entity owned by Executive:
(i) divert or attempt to divert any business from the
Company or engage in any act likely to cause any customer or supplier of the
Company to discontinue or curtail its business with the Company or to do
business with another entity, firm, business, activity or enterprise directly or
indirectly competitive with the Company; or
(ii) contact, sell or solicit to sell or attempt to
contact, sell or solicit to sell products competitive to those sold by the
Company to any customer of the Company with which Executive had contact while
performing services for the Company; or
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(iii) compete with the Company and its subsidiaries
by selling any products or services in direct competition with the Company or
its subsidiaries anywhere in the world.
Notwithstanding the provisions above, Executive may acquire securities
of any entity, the securities of which are publicly traded, provided that the
value of the securities of such entity held directly or indirectly by Executive
immediately following such acquisition is less than 5% of the total value of the
then outstanding class or type of securities acquired.
(b) Executive acknowledges and agrees that the restrictions
set forth in this Section 11 are founded on valuable consideration and are
reasonable in duration and geographic area in view of the circumstances under
which this Agreement is executed and that such restrictions are necessary to
protect the legitimate interests of the Company.
(c) Executive hereby sells, transfers and assigns to the
Company the entire right, title and interest of the Executive in and to all
inventions, ideas, disclosures and improvements, whether patented or unpatented,
and copyrightable materials, made or conceived by the Executive, solely or
jointly, or in whole or in part, during the period Executive is bound by this
Agreement which (i) relate to methods, apparatus, designs, products, processes
or devices sold, leased, used or under construction or development by the
Company or any subsidiary or (ii)) otherwise relate to or pertain to the
business functions or operations of the Company or any subsidiary, or (iii))
arise (wholly or partly) from the efforts of the Executive during his term of
employment in connection with his performance of his duties hereunder. The
Executive shall communicate promptly and disclose to the Company, in such form
as the Company requests, all information, details and data pertaining to the
aforementioned inventions, ideas, disclosures and improvements; and, whether
during the term hereof or thereafter, the Executive shall execute and deliver to
the Company such formal transfers and assignments and such other papers and
documents as may be required of the Executive to permit the Company to file and
prosecute the patent applications and, as to copyrightable material, to obtain
copyright thereon. This provision does not relate to any invention for which (i)
no equipment, supplies, facilities or trade secret information of the Company
was used and which was developed entirely on the Executive's own time and which
does not relate (A) directly to the business of the Company, or (B) to the
Company's actual or demonstrably anticipated research or development; or (ii)
does not result from any work performed by the Executive for the Company.
(d) The provisions in this paragraph are a supplement to any
other confidentiality and non-compete provisions applicable to the Executive in
any other agreements.
12. Successors.
(a) This Agreement is personal to the Executive and without
the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.
(b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.
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(c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.
13. Miscellaneous.
(a) This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin, without reference to
principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement may not
be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.
(b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:
If to the Executive: Thomas J Price
18360 Lynette Lane
New Berlin, WI 53146
If to the Company: THE OILGEAR COMPANY
2300 South 51st Street
Milwaukee, WI 53219
or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.
(c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.
(d) The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.
(e) The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(vii) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.
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<PAGE>
14. Arbitration. Any disputes arising under or in connection with this
Agreement, including, without limitation, those involving claims for specific
performance or other equitable relief, will be submitted to binding arbitration
in Milwaukee, Wisconsin before the Resolute Systems, but under the Commercial
Arbitration Rules of the American Arbitration Association under the authority of
federal and state arbitration statutes, and shall not be the subject of
litigation in any forum. If the Resolute Systems is unavailable to conduct the
arbitration, then it shall be before another arbitral body in Milwaukee,
Wisconsin selected by the parties or, if they cannot agree on another arbitral
body, the American Arbitration Association. EACH PARTY, BY SIGNING THIS
AGREEMENT, VOLUNTARILY, KNOWINGLY AND INTELLI-GENTLY WAIVES ANY RIGHTS SUCH
PARTY MAY OTHERWISE HAVE TO SEEK REMEDIES IN COURT OR OTHER FORUMS, INCLUDING
THE RIGHT TO JURY TRIAL. The arbitrator shall have full authority to order
specific performance or other equitable relief and award damages and other
relief available under this Agreement or applicable law. The decision of the
arbitrator will be final and binding, and judgment on the award by the
arbitrator may be entered in any court of competent jurisdiction. THIS
SUBMISSION AND AGREEMENT TO ARBITRATE WILL BE SPECIFICALLY ENFORCEABLE. If the
Executive is the prevailing party in any such arbitration or in any action to
enforce this Agreement, the Executive will be entitled to recover, in addition
to any other relief awarded by the arbitrator, all reasonable costs and
expenses, including fees and expenses of the arbitrator and attorneys, incurred
in connection therewith. If the Executive prevails on specific issues in the
arbitration, the arbitrator may allocate the costs incurred by the Executive on
a basis he deems appropriate.
15. Construction. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement will be construed as
if drafted jointly by the parties and no presumption or burden of proof will
arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.
/s/ Thomas J. Price
-------------------------------
[Executive]
THE OILGEAR COMPANY
By: /s/ David A. Zuege
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