Employment Agreement - Rashid Skaf



 Exhibit 10.29 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) is made, effective as of December 3, 2001, by and between Rashid Skaf (“Executive”), and AMX Corporation
(“Employer”). 
  
 WITNESSETH: 
  
 WHEREAS, Employer desires to employ Executive; 
  
 WHEREAS, Executive desires to accept such employment on the terms and
conditions herein set forth; 
  
 NOW, THEREFORE, in return for the
mutual promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Employer and Executive hereby agree as follows. 
  
 ARTICLE I 
 AGREEMENT 
  
 Employment 
  
 1.    Subject to the terms and conditions of this Agreement, Employer agrees to employ Executive and Executive hereby accepts employment with Employer. 
  
 Term 
  
 2.    The term (“Base Term”) of this Agreement shall commence on December 3, 2001, (“Effective Date”) and shall
continue thereafter through 5:00 p.m. December 3, 2004, at which time Executive’s employment will end unless earlier terminated as provided herein or unless extended on such terms and conditions and for such period of time as may be agreed upon
in writing by Employer and Executive (the Base Term, as so extended or earlier terminated, is referred to herein as the “Term”). 
  
 ARTICLE II 
 TITLE AND
AUTHORITY 
  
 General 
  
 Executive agrees to perform the duties of Vice President of Marketing, or
such other executive duties or positions which the Chief Executive Officer (“CEO”) or Board of Directors of Employer (“Board of Directors”) shall designate for Executive from time-to-time. Executive shall report directly to the
CEO. In performing such duties hereunder, Executive shall give Employer the benefit of his special knowledge, skills, contacts and business experience and shall devote substantially all of his business time, attention, ability and energy to the
business of Employer, with the understanding that Executive has the Board memberships and business interests shown in the attached Exhibit A, and that Employer agrees that Executive may continue to pursue them, consistent with his employment under
this Agreement. 
  

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 ARTICLE III 
 COMPENSATION 
  
 Base Salary 
  
 1.    Employer shall pay Executive a base salary at the rate of $6,923.08 on a bi-weekly basis, subject to periodic review and increase by the Compensation Committee of the Board of Directors of Employer; provided,
however, that no obligation to conduct such a review or to grant such increase is hereby created. Employer shall pay the base salary to Executive in equal installments in accordance with Employer’s normal payroll practice and on the paydays
normally scheduled for similarly situated executives, less applicable withholding, FICA, medicare, and any other legally required withholdings. 
  
 Bonus 
  
 2.    Executive shall be eligible for an annual bonus, with his 2001 fiscal year basis to be based on achievement of individual
performance goals established by Executive and CEO and pro-rated for the time Executive was employed in Fiscal Year 2001 (December 2001 through March 2002). For subsequent Fiscal Years, Executive’s bonus shall be based 75% on Employer’s
overall performance and 25% on Executive achieving individual goals, with individual goals to be established by Executive and CEO. Executive’s bonus upon reaching the goals established shall be at least 35% of his then-current annual base
salary, but may range up to 70% of his then-current annual base salary as determined by the Board of Directors. 
  
 Participation in Stock Option Program 
  
 3.    Executive shall receive stock option rights to purchase a total of 60,000 shares of Employer’s stock under Employer’s
1999 Equity Incentive Plan pursuant to a Stock Option Agreement in the form of that attached hereto as Exhibit B, to vest while employed with Employer or as specified under this agreement at a rate of 34% on December 3, 2002, 33% on December 3,
2003, and 33% on December 3, 2004. 
  
 ARTICLE IV

 BENEFITS 
  
 Employee Benefits 
  
 1.    Executive shall be entitled to participate in such health, life, dental, disability, retirement, 401k, ESPP, paid time off and
other benefits that Employer may provide from time-to-time to similarly situated executives of Employer. 
  
 Vacation 
  
 2.    Executive shall be entitled to paid vacation in accordance with Employer’s vacation policy, as in effect from time to time during the Term. 
  
 ARTICLE V 
 TERMINATION 
  
 General 
  
 1.    Employer and Executive shall have the right to terminate the employment of Executive as set forth in this Article V. 
  
  

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 Incapacity of Executive to Perform 
  
 2.    If Executive shall become ill or be injured or
otherwise become incapacitated such that, in the good faith opinion of the CEO or Board of Directors, he cannot carry out and perform fully the essential functions of his duties hereunder, and such incapacity shall continue for a period of ninety
(90) consecutive days, the CEO or Board of Directors may, at any time after the ninety (90) day period has passed, by giving Executive written notice of such termination, fully and finally terminate his employment under this Agreement. Termination
under this Section 5.02 shall be effective as of the date provided in such notice. In the event of termination under this Section, Executive shall be entitled to the same payments and benefits described in Section 5.05 for an Immediate Without Cause
Termination and shall be entitled to no other payments or benefits of any sort except for any base salary earned and due to him under this Agreement as the result of his activities during the pay period in which the termination occurred. 

 
 Death of Executive 
  
 3.    The employment of Executive shall automatically
terminate upon the death of Executive. On the date of a termination of employment with Employer as a result of a death of Executive, all unvested stock option rights shall immediately become 100% vested. Upon such termination, Executive’s
estate or, if applicable, his heirs shall receive only the base salary earned and due to Executive under this Agreement as the result of his activities during the pay period during which the death occurred, and thereafter no further consideration or
compensation shall be owed by Employer to Executive or to his estate. Executive shall not be eligible for any pro rated bonus. 
  
 Termination for Cause 
  
 4.    In addition to any other remedies that Employer may have at law or in equity, Executive may be terminated for “cause”
in the event of any of the following: (1) Executive’s using for his own benefit or the benefit of any third party any Confidential Information of Employer (as defined in Section 7.03 (Trade Secrets)), or its respective successors and assigns,
or willfully or negligently divulging any such Confidential Information to third parties, without the prior written consent of the CEO or Board of Directors, or any violation by Executive of any of his obligations under Article VII hereof; and (2)
the conviction of Executive, or the entering by Executive of a plea of nolo contendre, with respect to any felony; or (3) any act of fraud, theft, embezzlement or similar malfeasance on the part of Executive against the Company; or (4)
after being given written notice of a breach of a material term of this Agreement, with sixty (60) days to cure the breach and specific instructions about what is to be done to cure the breach, Executive has knowingly and intentionally breached and
is still in breach of (or has failed to cure any prior breach of) a material term of this Agreement, and then a majority of the Board of Directors votes to terminate his employment. 
  
 Upon termination for any of the reasons described above, Executive shall receive only the base salary earned and due to him
under this Agreement as the result of his activities during the pay period in which the termination occurred, and thereafter no further consideration or compensation of any sort shall be owed by Employer to Executive. Executive shall not be entitled
to payment of any bonus amount, pro rated or otherwise. Any unvested option rights shall be immediately forfeited upon termination of employment under this Section and shall be come null and void. 
  
 Termination without Cause 
  
  
 5.    The CEO or Board of Directors may terminate Executive’s employment under this Agreement without any cause whatsoever by giving Executive six (6) months’ written notice. Upon the last day of the six-month
notice period (“Without Cause Termination Date”), Executive shall receive the base salary earned and due to him under this Agreement as the result of his activities during the pay period in which the Without Cause Termination Date
occurred. Alternatively, in the discretion of the CEO or Board of Directors, the CEO or Board of Directors may terminate Executive’s employment immediately (“Immediate Without Cause Termination Date”) and without any cause or notice
whatsoever (“Immediate Without Cause Termination”) by paying Executive, in equal installments as set forth in Section 3.01, severance pay of six (6) months’ base salary (“Severance Payment Period”). In addition, if the CEO
or Board of Directors elects to terminate 

  

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Executive’s employment under this Immediate Without Cause Termination provision: (a) Employer shall pay Executive’s COBRA premiums during the
Severance Payment Period; (b) any of Executive’s stock option rights that would have vested had Executive remained employed during the Severance Payment Period shall accelerate and vest immediately on the Immediate Without Cause Termination
Date; and (c) Employer shall provide Executive with outplacement services if requested during the Severance Payment Period. 
  
 Termination for Good Reason 
  
 In the event Executive resigns for “good reason,” Employer shall pay Executive, in equal installments as set forth in Section 3.01, severance
pay of six (6) months’ base salary (“Severance Payment Period”). In addition, (a) Employer shall pay Executive’s COBRA premiums during the Severance Payment Period; (b) any of Executive’s stock option rights that would have
vested had Executive remained employed during the Severance Payment Period shall accelerate and vest immediately on the Immediate Without Cause Termination Date; and (c) Employer shall provide Executive with outplacement services if requested during
the Severance Payment Period.  
  
 Executive shall have
“good reason” to resign his employment under this Agreement if any of the following occur: (a) any decrease in Executive’s compensation or change in his eligibility to participate in all Company benefit plans, insurance programs,
incentive and bonus plans and deferred compensation plans; or (b) any attempt to change Executive’s eligibility for or ownership of the Company’s stock; or (c) any significant decrease in Executive’s title or role or reporting not
agreed to by Executive; or (d) any breach by the Company of any term or provision of this Agreement; or (e) any Change in Control. “Change in Control” means any of the following events: (a) the sale or transfer, or series of sales or
transfers, by the Company of an aggregate of more than fifty percent (50%) of the beneficial ownership interest in the equity of the Company, to an entity or entities not affiliated with the Company; b) the merger or consolidation of the Company in
a transaction in which the stockholders of the Company receive less than fifty percent (50%) of the outstanding voting stock of the new or continuing entity. 
  
 ARTICLE VI 
 EXPENSE
REIMBURSEMENT 
  
 Executive is authorized to incur
reasonable business expenses in connection with the business of Employer, including expenditures for entertainment and travel. Subject to the requirements of this Article VI, Employer will reimburse Executive from time to time for all reasonable
business expenses that are incurred and submitted for reimbursement in compliance with Employer’s policies and procedures. 
  
 ARTICLE VII 
 COVENANT NOT TO
COMPETE, TRADE SECRETS, AND ASSIGNMENTS 
  
 Covenant
Not to Compete 
  
 1.    Executive
recognizes and acknowledges that Employer is placing its confidence and trust in Executive. Executive shall have access to information which enables Employer to be successful in its business. Some of the information may be confidential and
constitute trade secrets; that information when combined with all other information regarding Employer constitutes proprietary information, the Executive’s unauthorized use of which could seriously affect the ability of Employer to do business.
Executive, therefore, covenants and agrees that for a period beginning on the Effective Date and ending twelve (12) months after his last date of employment, Executive shall not: 
  

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 A.    Either directly or indirectly engage in, or assist any person or entity to
engage in, any business that is in direct or indirect competition with the Business of the Employer. As used in this Article VII, the term “Business of the Employer” shall include all business activities in which the Employer is now
engaged, including, but not limited to, the design, manufacture, marketing and distribution by the Employer of various automation control products, and shall further include any other line of business in which the Employer is engaged on the last
date of Executive’s employment. 
  
 B.    Attempt in any manner to solicit, on his own behalf or on behalf of any person or entity, Business from any Customer of Employer with whom, or with whose account, Executive had direct contact during his employment,
or of whom Executive learned during his employment. For the purpose of this provision, “Business” shall mean the provision of products or services of the type that Employer has provided to such customer at any time during or after
Executive’s employment with Employer. For purpose of this Agreement, “Customer” shall mean any person or entity that, at any time during the last twelve (12) months of Executive’s employment, purchased goods or services from
Employer, or that Employer actively pursued or specifically planned to pursue for the purpose of selling goods or services. 
  
 C.    Either directly or indirectly be or become a shareholder, joint venturer in or owner (in whole or in part) of or be a partner of
or associated with or have any proprietary or financial interest in any firm, corporation, joint venture, partnership or association or other entity that is engaged in or is carrying on any business that is in direct or indirect competition with the
Business of Employer. 
  
 D.    Executive
hereby recognizes and acknowledges that the existing business area of Employer extends throughout the United States and therefore agrees that the covenants contained in this Section 7.01 shall be applicable in and throughout such area. Executive
further warrants and represents that, because of his varied skill and abilities, he does not need to compete with the Business of Employer in the area described above, in order to make a living. Nothing in this Section will prevent Executive from
owning less than five percent (5%) of the stock of any publicly traded corporation after the termination of his employment as long as Executive is not a participant in the management or affairs of the corporation in a manner that would otherwise
violate any prohibition contained in this Section. 
  
 Covenant Not to Solicit Employees 
  
 2.    For one year following his last date of employment, Executive shall not either directly or indirectly solicit for employment or employ, either on his own behalf or on behalf or any other person or entity, any
person who was employed by Employer at any time during the six (6) months prior to the last date of Executive’s employment with Employer. 
  
 Trade Secrets 
  
 3.    Employer shall provide Executive with Confidential Information regarding Employer’s business. For the purpose of this
provision, “Confidential Information” shall mean all information, in any form, owned, possessed or used by Employer, that is not generally available to the public (other than as the result of a breach by any person or entity of a
contractual, statutory or common law duty of confidentiality), including but not limited to information pertaining to the financial condition of Employer, its products, processes, properties, assets, inventions, plans, proprietary rights, Customers,
markets, technology, know-how, trade secrets, prospects, proposals, concepts and/or other aspects of the Business of Employer. Accordingly, Executive agrees that he will not, during or after the Term of his employment with Employer, disclose to any
person or entity or use any such Confidential Information without the express written consent of Employer. 
  
 Records 
  
 4.    All files of customers and of Employer and all records of the accounts of customers, and any other records, memoranda, etc., relating in any manner whatsoever to Employer’s customers,
product, the Business of Employer, the Confidential Information, suppliers or prospective customers or prospective suppliers of Employer, whether prepared by Executive or otherwise coming into his possession, shall be the exclusive 
  

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 property of Employer. All such files and records, both originals and copies, shall be immediately placed in the physical
possession of Employer on or before the last date of Executive’s employment with Employer or at any other time specified by the CEO or Board of Directors. 
  

Breach 
  
 5.    Executive hereby recognizes and acknowledges that irreparable injury or damage shall result to the Business of Employer in the
event of a breach or threatened breach by Executive of any of the terms or provisions of this Article VII, and Executive therefore agrees that Employer shall be entitled to an injunction restraining Executive from engaging in any activity
constituting such breach or threatened breach. Nothing contained herein shall be construed as prohibiting Employer from pursuing any other remedies available to Employer at law or in equity for such breach or threatened breach, including, but not
limited to, the recovery of damages from Executive. 
  
 Survival 
  
 6.    
Notwithstanding the termination of the employment of Executive or the termination of this Agreement, the provisions of this Article VII shall survive and be binding upon Executive unless a written agreement that specifically refers to the
termination of the obligations and covenants of this Article VII is executed by Employer. 
  
 ARTICLE VIII 
 MISCELLANEOUS 
  
 Assignment/Successors. 
  
 1.    The rights and duties of a party hereunder shall
not be assignable by that party; provided, however, that this Agreement shall be binding upon and inure to the benefit of any successor of the Company, and any such successor shall be deemed substituted for Company under the terms of this Agreement.
The term successor as used herein shall include any person, firm, corporation or other business entity which at any time, by merger, purchase or otherwise, acquires all or substantially all of the assets or business of the Company. This Agreement
shall also be binding upon and shall inure to the benefit of the Executive, Executive’s heirs, executors, administrators and beneficiaries. 
  
 Notices 
  
 2.    Any notices to be given hereunder by either party to the other may be effected either by personal delivery in writing or by
mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the following addresses: 
  
 If to Employer: 
  
 If to Executive: 
  
 Any party may change his or its address by written notice in accordance with this Section. Notices delivered personally shall be deemed communicated as of
actual receipt, mailed notices shall be deemed communicated as of three (3) business days after proper mailing. 
  
 Inclusion of Entire Agreement Herein 
  
 3.    This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to
the employment of Executive by Employer and contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever. Any 
  

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 existing employment agreement between Executive and Employer is hereby terminated effective as of the Effective Date and
shall be of no further force or effect from and after the Effective Date. 
  
 Law Governing Agreement 
  
 4.    This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, and all obligations shall be performable in the State of Texas. 
  
 Attorney’s Fees and Costs 
  
 5.    If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 Waiver 
  
 6.    No term or condition of this Agreement shall be
deemed to have been waived nor shall there be any estoppel to enforce any of the terms or provisions of this Agreement except by written instrument of the party charged with such waiver or estoppel. Further, it is agreed that no waiver at any time
of any of the terms or provisions of this Agreement shall be construed as a waiver of any of the other terms or provisions of this Agreement and that a waiver at any time of any of the terms or provisions of this Agreement shall not be construed as
a waiver at any subsequent time of the same terms or provisions. 
  
 Amendments 
  
 7.    Except as otherwise provided in Section 8.07, no amendment or modification of this Agreement shall be deemed effective unless and until executed in writing by all of the parties hereto. 
  
 Severability and Limitation 
  
 8.    All agreements and covenants contained herein are
severable and, in the event any of therein shall be held to be invalid by any competent court, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein. Should any court or other legally constituted
authority determine that for any such agreement or covenant to be effective that it must be modified to limit its duration or scope, the parties hereto shall consider such agreement or covenant to be amended or modified with respect to duration and
scope so as to comply with the orders of any such court or other legally constituted authority or to be enforceable under the laws of the State of Texas, and as to all other portions of such agreement or covenants they shall remain in full force and
effect as originally written. 
  
 Mandatory Arbitration

  
 9.    All claims, disputes,
controversies, differences or misunderstandings between the parties arising out of, or by virtue of this Agreement or the interpretation of this Agreement which cannot be settled or resolved by the parties hereto shall be settled or determined by
binding arbitration under the then-current rules of the American Arbitration Association. The exclusive jurisdiction for any such arbitration shall be Dallas County, Texas, and each party consents to personal jurisdiction in Dallas County, Texas.
Employer shall pay the arbitrator’s fees for any such arbitration unless the arbitrator determines that any portion of any claim by Executive was frivolous or brought in bad faith, in which case the arbitrator may order Executive to pay all or
a portion of the arbitrator’s fees. The arbitrator may award or apportion attorneys’ fees and costs in his or her judgment. Either party may, however, seek injunctive relief in any court of competent jurisdiction, pending arbitration.
Judgment based on the arbitrator’s award may be entered in any court of competent jurisdiction. 
  

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 Headings 
  
 10.    All headings set forth in this Agreement are intended for convenience only and shall not control
or affect the meaning, construction or effect of this Agreement or of any of the provisions thereof. 
  
 EXECUTED as of the day and year first above written. 
  

	 EMPLOYER:
  

	 AMX CORPORATION

		
	 By:
	 	 /s/    S. Byars


	 Its:
	 	 Steve Byars




  

	 EXECUTIVE:

		
	 By:
	 	 /s/    Rashid Skaf


	 	 	 


  

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