Employment Agreement - Sybari Software Inc. and Anthony Pane
(SYBARI SOFTWARE LOGO)
EMPLOYMENT AGREEMENT
This Employment Agreement (this "Agreement"), dated as of December 9,
2003, is entered into between Sybari Software Inc., with its principal office
at 353 Larkfield Road, East Northport, N.Y. 11731 ("Sybari"), and Anthony Pane
("Employee"), residing at 415 East 37th Street, Apartment 27K, New York, NY
10019.
WHEREAS, Sybari desires to retain Employee's services as Vice President of
Finance, and Employee desires to be retained by Sybari to serve as Vice
President of Finance.
NOW THEREFORE, for good and valuable consideration, the sufficiency of
which is hereby acknowledged by the parties, the parties hereto hereby
agree as follows:
1. Compensation and Benefits. Sybari shall pay the following
compensation and provide the following benefits to Employee during the Term of
Employment:
(a) Base Salary. Employee shall receive a base salary of $150,000 per
annum (the "Base Salary"), which equates to $12,500 monthly, payable in
approximately equal installments in accordance with the customary payroll
practices of Sybari. If the rate of Base Salary per annum paid to Employee
is increased during the Term of Employment, such increased rate shall
thereafter constitute the Base Salary for all purposes of this Agreement.
Employee's Base Salary shall not be decreased during the Term of Employment
without the mutual consent of Employee and Sybari.
(b) Bonus Compensation. Employee will be eligible to participate in
Sybari's annual bonus incentive compensation program for senior employees
and executives. The actual award will be earned on the basis of Employee's
individual performance as well as the performance of Sybari.
(c) Option to Acquire Sybari Common Stock. On the next Sybari stock option
grant to employees subsequent to the date first written above, Sybari will
grant to Employee, an option to acquire shares of Sybari common stock (the
"Option") at an exercise price equal to the fair value of Sybari's common
stock on such date. The number of shares granted to Employee will be
consistent with the number of shares granted to other employees and
executives with similar roles and tenure with Sybari. The Option will be
subject to the terms of a stock option agreement to be executed by Sybari
and Employee.
(d) Benefit Plans. Employee shall be entitled to participate in all
current and future benefit plans maintained for Sybari Employees and
Executives.
2. Termination Without Cause or With Good Reason. If, at any time during
the Term of Employment, Employee's employment is terminated by Sybari without
Cause (as defined below), or if Employee terminates his employment with Sybari
for Good Reason (as defined below),
(i) Sybari will pay to Employee an amount equal to one-half
Employee's then current Base Salary, which shall be payable in
a lump sum, and
(ii) One hundred percent of the unvested portion of the Option and
all other options, if any, granted to Employee during the Term
of Employment, will immediately vest and will remain
exercisable by Employee for three months following the
effective date of termination (the "Termination Date").
(iii) In addition, Employee's participation in Sybari's welfare
benefit plans (if enrolled) will continue for six months
following the Termination Date, including, without limitation,
all medical, prescription, dental, group life plans and other
programs maintained by Sybari, at the same level provided to
Employee immediately prior to the Termination Date; provided,
however, that if Employee becomes covered under any plans of
another employer that provide substantially similar coverage,
the coverage provided by Sybari pursuant to this Subsection
2(iii) will cease.
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Tel.631-630-8500, Fax.631-630-8550 @ 353 Larkfield Road, East Northport, NY 11731 USA @ Internet Web: http://www.sybari.com
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3. Definitions. In addition to certain terms defined elsewhere in this
Agreement, the following terms will have the following respective meanings:
"Cause" means the willful and continuing refusal of Employee to follow
lawful directives of the CFO, CEO or Board, provided that such
directives are consistent with Employees title and position, conduct
that is intentional and known by Employee to be harmful to Sybari's
best interest, or the Employee's conviction of any felony or any
crime involving dishonesty.
"Good Reason" shall mean a breach by Sybari of its obligations
hereunder, relocation of the Employee's principal place of employment
from East Northport, NY, to a location that is more than 25 miles
from Employees home residence than East Northport, NY is, without the
Employee's consent, a significant diminution of Employee's duties,
title or authority without the Employee's consent, or the failure by
Sybari to obtain a written agreement from any successor or assign of
Sybari to assume the material obligations under this Agreement upon a
Change in Control (as defined below).
"Change in Control of Sybari" means and includes each of the
following:
(i) the acquisition, in one or more transactions, of beneficial
ownership (within the meaning of Rule 13d-3 of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) by any person or any group of persons who
constitute a group (within the meaning of Section 13(d)(3) of the Exchange Act)
of any securities of Sybari such that, as a result of such acquisition, such
person or group beneficially owns (within the meaning of Rule 13d-3 of the
Exchange Act), directly or indirectly, more than fifty percent of Sybari's
outstanding voting securities entitled to vote on a regular basis for a majority
of the members of the Board;
(ii) the consummation of any merger or any other business
combination, in one or more transactions, including, but not
limited to a sale of all or substantially all of the assets
of Sybari, other than a transaction immediately following
which the shareholders of Sybari who owned shares
immediately prior to the transaction continue to own, by
virtue of their prior ownership of Sybari shares, at least
fifty percent of the voting power, directly or indirectly,
of the surviving corporation in any such merger or business
combination; or
(iii) the consummation of a plan of complete liquidation of
Sybari.
4. Entire Agreement; Modifications. This Agreement constitutes the
entire and final expression of the agreement of the parties with respect to the
subject matter hereof and supersedes all prior agreements, oral and written,
between the parties hereto with respect to the subject matter hereof. This
Agreement may be modified or amended only by an instrument in writing signed by
both parties hereto.
IN WITNESS WHEREOF, Employee and the authorized representative of Sybari
execute and enter into this Agreement as of the date first written above.
EMPLOYEE SYBARI SOFTWARE INC.
/s/ Anthony Pane /s/ Robert Wallace
----------------------------------- ----------------------------------
Anthony Pane By: Robert Wallace
President and CEO
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