Document:

Exhibit
10.37

 

February 25,
2010

 

Mr. Robert Mayson

Church View

36A Lukes Lea, Marsworth Tring, HP23 4NH,
United Kingdom

 

Dear Robert:

 

On behalf of Real D, Inc.,
(the “Company”), 1 am pleased to offer you the position described herein and
present you with this offer letter agreement (the “Agreement”) setting forth
certain terms and conditions of your employment.

 

1.             Title; Duties. You shall serve during the
course of your employment as President of Consumer Electronics and shall report
directly to the Chief Executive Officer (the “CEO”) of the Company. You shall
be a member of the Company’s senior management team and shall have such duties
and responsibilities as shall be consistent with your position. You shall work
out of the Company’s headquarters in Beverly Hills, California. You will also
devote your full time, efforts, abilities, and energies to promote the general
welfare and interests of the Company and any related enterprises of the
Company. You will loyally, conscientiously, and professionally do and perform
all duties and responsibilities of his position, as well as any other duties
and responsibilities as will be reasonably assigned by the Company. You will
strictly adhere to and obey all Company rules, policies, procedures,
regulations and guidelines, including but not limited to those contained in the
Company’s employee handbook, as well any others that the Company may establish.
You will strictly adhere to all applicable state and/or federal laws and/or
regulations relating to your employment with the Company.

 

(a)           No Conflicting Obligations. By signing
this Agreement, you confirm to the Company that you have no contractual
commitments or other legal obligations that would prohibit you from performing
your duties for the Company.

 

(b)           Start Date. Your official employment
start date with the Company shall be February 25, 2010 (the “Start Date”).

 

2.             Term.

 

(a)           The term of this Agreement
shall be for three (3) years from the Start Date (“Initial Term”) unless terminated earlier in accordance with the
terms herein. This Agreement, thereafter, shall automatically be renewed for
successive one (1) year terms (each a “Subsequent Term”), on the same
terms and conditions as stated herein, unless either party provides written
notice, as provided for herein, of its intention to terminate this Agreement at
least ninety (90) calendar days prior to the expiration of the Initial Term or
any Subsequent Term, or unless terminated earlier in accordance with the terms
herein. Your employment shall be at-will, terminable at any time by either
party, subject to the terms of this Agreement. After the termination or
expiration of this Agreement, your continued employment, if any, shall continue
to be at-will. Upon termination of your employment for any reason, you shall be
deemed to have immediately resigned from all positions as an employee, officer
and/or director with the Company, and any of its affiliates, as of your last
day of employment. Your employment will

 

 

automatically terminate upon
your death or upon your disability (within the meaning of Internal Revenue Code
section 409A) as determined by the Company.

 

(b)           This Agreement will
automatically expire on August 1, 2010 if you do not relocate to the Los
Angeles, California area by August 1, 2010, at which time you and the
Company will renegotiate a new agreement in good faith.

 

3.             Compensation.

 

(a)           Base Salary.

 

(i)            Your current base salary
will be GBP £154,000 per annum, paid in England and less all applicable English
taxes and required withholdings.

 

(ii)           Upon your relocation to the
Company’s Beverly Hills, California office, your initial base salary will be
USD $300,000 per annum, less all applicable United States federal, state, and
local withholdings and deductions, payable in accordance with the Company’s standard
payroll procedures.

 

(iii)          Effective as of June 1,
2011, your base salary shall be increased by 10%, provided you have satisfied all
applicable performance goals (“MBO Goals”) for the fiscal year ending March 31,
2011. In addition, your base salary shall be increased by 10% effective as of June 1,
2012, provided you have satisfied all MBO Goals for the fiscal year ending March 31,
2012. All MBO Goals will be prescribed and established by the Company and you
may have input into the development of such MBO Goals.

 

(iv)          During the Initial Term,
your base salary will increase to no less than USD $400,000 per annum, less
applicable taxes and withholdings, upon the earlier of: (a) trailing
twelve (12) month sales from the Consumer Electronics Division exceed USD $10
Million; or (b) contracted binding orders from the Consumer Electronics
Division exceed USD $10 Million. However with respect to a fiscal year in which
your base salary increases pursuant to this Section 3(a)(iv), you will not
be eligible for an increase under Section 3(a)(iii).

 

(b)           Bonus.

 

(i)            For the fiscal year ending March 31,
2010, you will be paid a bonus based on your current Director Services Agreement
with RealD Europe Limited, which will be paid on June 1, 2010, less all
applicable withholdings and deductions, provided you have remained continuously
employed by the Company through the date of payment.

 

(ii)           During the Initial Term, if
trailing twelve (12) month sales from the Consumer Electronics Division exceed
USD $10 Million, you will be eligible for a one-time bonus of USD $200,000,
less all applicable withholdings and deductions. Such bonus will be paid within
30 days after the Company has determined that the foregoing objective has been
satisfied and you must remain continuously employed by the Company through the
date of payment in order to receive such payment.

 

(iii)          During the Initial Term, if
contracted binding orders from the Consumer Electronics Division exceed USD $10
Million, you will be eligible for a one-time bonus of USD $200,000, less all
applicable withholdings and deductions. Such bonus will be paid within 30 days
after the Company has determined that the foregoing objective has

 

2

 

been satisfied and you must
remain continuously employed by the Company through the date of payment in
order to receive such payment.

 

(iv)          During the Initial Term, if
there is a Change in Control (as defined below) of the Company, you will
receive a one-time, lump sum “Change in Control Retention Bonus” in the amount
of USD $500,000, less all applicable withholdings and deductions, which shall
be paid on the first anniversary of the Change in Control. You must be
continuously employed by the Company (or its successor or acquirer) through the
date of payment to receive this bonus subject to Section 3(d).

 

(v)           During the Initial Term, you
will annually be eligible to earn a performance bonus in the amount of up to
USD $300,000, less all applicable withholdings and deductions, beginning with
the fiscal year ending March 31, 2011. Your actual bonus for fiscal year
2011, if any, shall be based on your successful completion of the MBO Goals
identified in Exhibit A. Thereafter, the MBO Goals will be prescribed and
established by the Company and you may have input into the development of such
MBO Goals (provided that MBO Goals may be replaced with a successor incentive
plan for you and other officers at a similar level at the direction of a
compensation committee of the Board acting in good faith). It is expected that
any bonus payment shall be paid to you at any time from April through July of
the applicable performance year. To earn any bonus, you must remain
continuously employed by the Company through the date that the bonus, if any,
is paid.

 

(c)           Company-Sponsored Benefits.

 

(i)            As a member of the senior
management team of the Company, you will also be eligible to receive certain
employee benefits pursuant to the Company’s standard benefit plans that the
Company generally provides to the other members of the senior management team
that may be in effect from time to time. These currently include paid vacation, 401(k) retirement benefits,
PTO, sick time and Company paid holidays. The Company many, in its sole
discretion and from time to time, amend or eliminate any of these benefits.

 

(d)           Severance.

 

(i)            If your employment is
terminated during the Initial Term or any Subsequent Term without Cause (as
defined herein) by the Company (“Qualifying Termination”), you shall be
eligible to receive to: (a) cash severance payments paid over a one year
period beginning on the 60th day after your “separation from
service” (within the meaning of Internal Revenue Code Section 409A) from
the Company (“Termination Date”) in accordance with the Company’s normal
payroll practices in an aggregate amount equal to your then current annual base
salary, less all applicable withholdings and deductions, and; (b) the
Company will continue to pay the cost for group employee benefit coverage
continuation under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”)
to the same extent previously provided by the Company’s group plans for one
year after the Termination Date, or until you become eligible for group
insurance benefits from another employer, whichever occurs first, provided that
you timely elect COBRA coverage. You understand that you will have an
obligation to promptly inform the Company if you receive group health coverage
from another employer during the one year following your Termination Date and
that you may not increase the number of your designated dependents, if any,
during this time unless you do so at your own expense. The period of such
Company-paid COBRA coverage shall be

 

3

 

considered part of your COBRA
coverage entitlement period, and may, for tax purposes, be considered income to
you.

 

(ii)           If there is a Change in
Control during the Initial Term and if you experience a Qualifying Termination
during the twelve month period following such Change in Control, you will
receive the $500,000 Change in Control Retention Bonus as a severance benefit paid
in a lump-sum, less all applicable withholdings and deductions, to be paid on
the 60th day after the Termination Date.

 

(iii)          Notwithstanding anything to
the contrary, in order to receive any payments or benefits under Section 3(d)(i) or
3(d)(ii), you must timely execute and deliver (and not revoke) a general
release of claims in favor of the Company, any affiliates or related entities,
and their employees and affiliates, in the form provided by the Company, within
the time period specified in the release, but in no event after the 45th day following the Termination Date. For
avoidance of doubt, no payments or benefits will be provided under Section 3(d)(i) or
3(d)(ii) if your employment was terminated due to your death or
disability.

 

Notwithstanding
anything to the contrary in this Agreement whether express or implied, the
Company may at any time terminate your employment with the Company for any
reason or no reason, and with or without Cause. If this Agreement terminates by
you or the Company for non-renewal in accordance with Section 2(a), or
pursuant to Section 2(b), you will not be eligible for any severance
benefits.

 

(iv)          If any payment or benefit
received or to be received by you (including any payment or benefit received
pursuant to this Agreement or otherwise) would be (in whole or part) subject to
the excise tax imposed by Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code”), or any successor provision thereto, or any
similar tax imposed by state or local law, or any interest or penalties with
respect to such excise tax (such tax or taxes, together with any such interest
and penalties, are hereafter collectively referred to as the “Excise Tax”),
then, the payments or benefits provided under this Agreement or any other
agreement pursuant to which you receive payments that give rise to the Excise
Tax will be reduced to the extent necessary to make such payments and benefits
not subject to such Excise Tax. However, if the imposition of such Excise Tax
could be avoided by approval of stockholders as described in Section 280G(b)(5)(B) of
the Code, then you may request the Company to solicit a vote of such
stockholders (described in Section 280G(b)(5)(B) of the Code) and in
which case you will cooperate and execute any such waivers of compensation as
may be necessary to enable the stockholder vote to comply with the requirements
specified under Section 280G of the Code and the regulations promulgated
thereunder. In no event will the Company be required to gross up any payment or
benefit to you to avoid the effects of the Excise Tax or to pay any regular or
excise taxes arising from the application of the Excise Tax. Unless the Company
and you otherwise agree in writing, any parachute payment calculation will be
made in writing by independent public accountants selected by the Company,
whose calculations will be conclusive and binding upon the Company and you for
all purposes. The Company and you will furnish to the accountants such
information and documents as the accountants may reasonably request in order to
make a parachute payment determination. As expressly permitted by Q/A #32 of
the Code section 280G regulations, with respect to performing any present value
calculations that are required in connection with this Section, the parties
affirmatively elect to utilize the Applicable Federal Rates that are in effect
as of the effective date of this Agreement (the “February 2010 AFRs”) and the accountants
shall therefore use such February 2010 AFRs in their determinations and
calculations.

 

4

 

(v)  Code
Section 409A. The payments under this Agreement are intended to be
exempt from the “short-term deferral” exception and “separation pay plan”
exception under Code Section 409A to the fullest extent possible. Each
individual payment provided under Section 3(d) is intended to be a
separate payment and not a stream of payments for purposes of Code Section 409A.
Anything in this Agreement to the contrary notwithstanding, if the severance
payment above constitutes an item of deferred compensation subject to Code Section 409A,
the Company and you shall take all steps necessary (including with regard to
any post-termination services you may perform) to ensure that any termination
described above constitutes a “separation from service” within the meaning of
Code Section 409A. In addition, no such payment will be made to your prior
to the earlier of (a) the first business day of the seventh month
following your “separation from service” (as such term is defined in Treasury
Regulations issued under Code Section 409A) or (b) the date of your
death, if your are deemed at the time of such separation from service to be a “specified
employee” within the meaning of that term under Code Section 409A and to
the extent such delayed commencement is otherwise required in order to avoid
the imposition of taxes under Section 409A of the Code. All payments and
benefits which had been delayed pursuant to the immediately preceding sentence
will be paid to you in a lump sum without interest. It is intended that
payments under this Agreement will be exempt from or comply with Code Section 409A,
but the Company makes no representation or covenant to ensure that the payments
under this Agreement are exempt from, or compliant with, Code Section 409A,
and will have no liability to you or any other party if a payment under this
Agreement that is intended to be exempt from, or compliant with, Code Section 409A
is not so exempt or compliant.

 

(e)           Expense
Reimbursement. You shall be reimbursed for all documented reasonable
business expenses that are incurred in the ordinary course of business in
accordance with the Company’s expense reimbursement policy as in effect from
time to time.

 

4.                                       Definitions.

 

(a)           For the purposes
of this Agreement, the term “termination without Cause” shall mean a
termination of your employment by the Company for any reason other than Cause,
death or disability as allowed by law. “Cause” shall mean fraud, willful
misconduct or violation of Company policies or practices, use or disclosure of
Confidential Information (as defined below) that is unauthorized by this
Agreement, or your performance of any act or omission which, if you were
prosecuted, would constitute a felony or misdemeanor, in each case as
determined by the Board of Directors of the Company (the “Board”), whose
determination shall be conclusive and binding. Upon a termination of your
employment by the Company for Cause, you will be entitled to only any salary
and other benefits earned, but unpaid, and any reimbursement for expenses owed
to you by the Company, as of the Termination Date. In addition, you may be
required to repay to the Company certain previously paid compensation in
accordance with Company policies and/or applicable law (each, a “Clawback
Policy”).

 

(b)           For purposes of
this Agreement, “Change in Control” shall mean:

 

(i)            any person or
group of persons (as defined in Section 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended ( the “Exchange Act”) together with
its affiliates, but excluding (i) the Company or any of its subsidiaries, (ii) any
employee benefit plans of the Company, or (iii) a corporation or other
entity owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company
(individually, a “Person” and collectively, “Persons”), is or becomes, directly
or indirectly, the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act) of securities of the Company representing 50% or

 

5

 

more of the combined voting power of the Company’s
then-outstanding securities (not including in the securities beneficially owned
by such Person any securities acquired directly from the Company or its
affiliates);

 

(ii)           the consummation
of a merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other corporation or other entity regardless
of which entity is the survivor, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or being
converted into voting securities of the surviving entity) more than 50% of the
combined voting power of the voting securities of the Company, such surviving
entity or any parent thereof outstanding immediately after such merger or
consolidation; or

 

(iii)          there is
consummated an agreement for the sale or disposition of all or substantially
all of the Company’s assets.

 

(c)           For purposes of this Agreement,
“Confidential Information” shall mean: The Company’s confidential and
proprietary business information, including but not limited to the Company’s
products, services, customers, contracts, fees, prices, costs, business affairs,
marketing, accounting, financial statements, employees, research, inventions,
data, software, and any other confidential and proprietary business information
of any kind, nature or description, tangible or intangible, in whatever form.
You acknowledge that you will be making use of, acquiring and/or adding to
Confidential Information. The Confidential Information is and will remain the
sole and exclusive property of the Company. You will not at any time use,
divulge, disclose or communicate, either directly or indirectly, in any manner
whatsoever, any Confidential Information to any person or business entity, or
remove from the premises of the Company any Confidential Information in
whatever form, unless required by you to perform the essential functions of
your position with the Company while employed by the Company.  You will fully comply with all obligations under
any Company Confidentiality Agreement or Proprietary Information Agreement and
further agree that the provisions of such agreements shall survive any
termination or expiration of this Agreement or termination of your employment.
As of the Termination Date, you shall not retain any copies, facsimiles or
summaries of any Confidential Information.

 

5.             Equity Compensation.

 

(a)           For the fiscal
year ending March 31, 2010, your outstanding stock options shall continue
to vest and be exercisable based on your Director Services Agreement with RealD
Europe Limited and any agreement evidencing the grant of the option. For all
other equity grants during the Term of this Agreement, vesting provisions will be
in accordance with the terms of the 2004 Amended and Restated Stock Plan, or
any successor plan thereto (the “Stock Plan”), and any individual grant
documents.

 

(b)           Subject to
approval by the Board, you will be granted a non-qualified stock option to
purchase 250,000 shares of common stock (the “Option”) of the Company on the
effective date of an Initial Public Offering (“IPO”) of the Company’s shares
(provided that you have permanently relocated to the Company’s Beverly Hills,
California location by such date, and if not, then not until the five business
days after the date you complete such relocation), but in any event no later
than September 30, 2010. If the Option is granted on the IPO date, then
the exercise price will be determined by the Board based upon the IPO price,
but in any event will be equal to not less than the fair market value of the
underlying shares on the date of grant as determined in accordance with the
Stock Plan. If the Option is granted on a date other than the IPO date, then
the exercise price will be determined by the Board (or committee thereof) in
its discretion at the time of the grant but in any event will be equal to not
less than the fair market value of the underlying shares on the date of grant.
In the event of a Change in Control that occurs prior to the IPO date and
September 30, 2010, the Option will be granted as of the date

 

6

 

immediately prior to the
consummation date of the Change in Control and will have an exercise price
determined by the Board based on the Change in Control transaction price, but
in any event will be equal to not less than the fair market value of the
underlying shares on the date of grant as determined in accordance with the
terms of the Stock Plan. The Option will be on other terms and conditions set
forth in the stock option agreement evidencing the grant and which you must
execute as a condition of grant, with vesting to commence on the date of the
grant and in accordance with the vesting schedule set forth in the Stock Plan
and Option agreement. Further details on the Stock Plan and the specific terms
and conditions applicable to any option granted to you will be provided upon
final approval of such grant by the Board. Copies of the Plan and the option
grant notice and stock option agreement evidencing any options granted to you
will be delivered to you at the time of the grant.

 

In
the event that an IPO is consummated during the Initial Term and provided you
have remained continuously employed by the Company through the effective date
of such IPO, then your current outstanding stock option to purchase 20,000 Company
common shares shall (to the extent it is then outstanding and unvested) become
fully vested and exercisable as of immediately prior to the effective time of
the IPO. All other terms and conditions of this stock option shall remain
unchanged.

 

6.             Contingencies. Your employment pursuant
to this Agreement is continent upon your providing the Company with: (a) a resignation
of your directorship for RealD Europe, in the form provided by RealD Europe, and
(b) the legally required proof of your identity and authorization to work
in the United States effective upon your relocation. As an employee of the Company, you will have access to
certain confidential information of the Company and you may, during the course of your employment or thereafter, develop certain
information or inventions which will be the property of the Company. in consideration of, and as a condition
to, your employment with the Company, and as an essential inducement to the
Company to enter into this Agreement, this Agreement is expressly subject to
your executing the RealD Employee Invention Assignment and Confidentiality
Agreement in the form enclosed hereto.

 

7.             Relocation Expenses.

 

(a)           The Company will
reimburse you for up to two (2) site visits (of up to 4 days each) for you
and your spouse to the Los Angeles, California area, to be completed no later
than August 1, 2010. The Company will pay for airfare at Business
Class rates, hotel rooming charges, and the use of a rental car. You must
submit your request for reimbursement for all such expenses to the Company by
not later than September 30, 2010 and you will receive reimbursement for
validly incurred amounts within 60 days of the Company’s receipt of your
reimbursement request.

 

(b)           Provided you
relocate to the Los Angeles, California area by August 1, 2010, you will be
entitled to receive an allowance covering up to five (5) months of paid
temporary lodging in Los Angeles. You must commence such temporary lodging in
the Los Angeles, California area no later than June 1, 2010. This housing
allowance may be used for rental of an apartment or a house, hotel or motel
rooming charges, home mortgage payments made during your first five
(5) months of employment in Los Angeles, and/or one-time travel expenses for
you and your family between Los Angeles, California and London. This temporary
housing allowance may not exceed in the aggregate an amount of USD $20,000 and
will only be available for such expenses that are incurred between the Start
Date through October 31, 2010. You must submit your request for reimbursement
for all such expenses to the Company by not later than November 15, 2010 and
you will receive reimbursement for validly incurred amounts (subject to the USD
$20,000 limit) within 45 days of the Company’s receipt of your reimbursement
request. No expenses will be reimbursed if incurred after your Termination
Date.

 

7

 

(c)           If you complete
your relocation to the Los Angeles, California area by August 1, 2010, you will
also be eligible for a one-time, lump-sum relocation payment of USD $200,000 (“Relocation
Payment”). Such Relocation Payment will be paid to you within 30 days after you
start working full time out of the Company’s Beverly Hills, California office
(“Relocation Date”). In the event that within one year of the Relocation Date, either
you voluntarily resign your employment with the Company or your employment is
terminated by the Company for Cause, then you must repay the entire Relocation
Payment to the Company within 30 days of your Termination Date.

 

(d)           In addition, in
the event of a reimbursement or benefits payable under this Section 7 that
constitutes an item of deferred compensation that is subject to Code Section 409A,
(i) the amount of expense reimbursement in one calendar year can in no way
affect the amount of reimbursement in another calendar year for you; (ii) in
all events such reimbursement(s) must be made no later than the last day of the
year following the calendar year in which the expense is incurred; and
(iii) no such reimbursement(s) may be subject to liquidation for cash or
exchange for another benefit.

 

8.             Covenants. You agree to
timely and fully comply with all of the covenants set forth in this
Section 8 and further understand and agree that such covenants shall
survive any termination of your employment and termination or expiration of this
Agreement.

 

(a)           Return of
Company Property. On your Termination Date, or at any other time as required
by the Company, you will immediately surrender to the Company all Company
property, including but not limited to Confidential Information, keys, key
cards, computers, telephones, pagers, credit cards, automobiles, equipment, and/or
other similar property of the Company.

 

(b)           Nondisparagement. You will not
at any time during the period of your employment with the Company and during
any period in which you are receiving severance payments under Section 3(d),
make (or direct anyone to make) any disparaging statements (oral or written) about
the Company, or any of its affiliated entities, officers, directors, employees,
stockholders, representatives or agents, or any of the Company’s products or
services or work-in-progress, that are harmful to their businesses, business
reputations or personal reputations.

 

(c)           Cooperation. You agree
that, upon the Company’s request and without any payment therefore, you shall
reasonably cooperate with the Company (and be available as necessary) after the
Termination Date in connection with any matters involving events that occurred
during your period of employment with the Company.

 

(d)           Amounts Due. You will fully
pay off any outstanding amounts owed to the Company no later than their
applicable due date or within thirty days of the Termination Date (if no other
due date has previously been established). Within thirty (30) days of the Termination
Date, you will submit any outstanding business expense reports to the Company
for business expenses incurred prior to the Termination Date.

 

(e)           Company
Resources. As of the Termination Date, you will no longer
represent that you are an officer, director or employee of the Company or any
Company affiliate and you will immediately discontinue using the Company
mailing address, telephone, facsimile machines, voice mail and e-mail.

 

(f)            Notice of New
Employment. You will provide written notice to the Company
within three (3) business days after the date that you agree to accept new
full or part time employment or agree to provide consulting or other services
to another entity or venture.

 

8

 

(g)           Representations. You represent
that you have not entered into any agreements, understandings, or arrangements
with any person or entity that you would breach as a result of, or that would
in any way preclude or prohibit you from entering into, this Agreement with the
Company or performing any of the duties and responsibilities provided for in
this Agreement. You represent that you do not possess any confidential,
proprietary business information belonging to any other entity, and will not
use any confidential, proprietary business information belonging to any other
entity in connection with your employment with the Company. You represent that
you are not resigning employment or relocating any residence in reliance on any
promise or representation by the Company regarding the kind, character, or
existence of such work, or the length of time such work will last, or the
compensation therefor.

 

(h)           Clawback. You understand
and agree that all payments and benefits provided to you will be subject to the
terms and conditions of any Clawback Policy which shall survive any termination
or expiration of this Agreement or termination of your employment.

 

(i)            Violations. You
acknowledge that (i) upon a violation of any of the covenants contained in
this Section 8 or (ii) if the Company is terminating your employment
for Cause as provided under this Agreement, the Company would sustain
irreparable harm as a result and that the Company would not have entered into
this Agreement without such restrictions, and, therefore, you agree that in
addition to any other remedies which the Company may have, the Company shall be
entitled, without bond of any kind, to seek equitable relief including specific
performance and injunctions restraining you from committing or continuing any
such violation. Moreover, the Company will be entitled to an accounting of
profits, compensation, remuneration or other benefits received by you, in
addition to any other contractual, legal or equitable rights, damages or
remedies available.

 

9.             Entire Agreement. This
Agreement, the Employee Invention Assignment and Confidentiality Agreement, and
the Company’s Stock Plan, as amended or superseded from time to time, contain
the entire agreement between you and the Company regarding their terms. Except
as otherwise provided herein, this Agreement may not be amended or modified
except in a writing, executed by you and the CEO of the Company. This Agreement
may be executed by facsimile signatures and in counterparts, each of which
shall constitute an original, and all of which shall constitute one and the
same instrument. Notwithstanding Section 3 above, this Agreement cancels
and is in substitution of your Director Services Agreement, and any other
agreements related to your employment, with RealD Europe Limited dated November
2008 (collectively “RealD Europe Agreement”) which is hereby terminated by
mutual agreement, except for only Clauses 12, 14, 18 with respect to your
employment in the United Kingdom, and Schedule 2 thereof, which will continue
in full force and effect. The obligations set forth in Schedule 2 of the RealD
Europe Agreement will continue during the six (6) months immediately following
the execution of this Agreement. Clause 13 of the RealD Europe Agreement RealD
Europe Limited remains effective for any intellectual property, inventions, and
patents made or acquired by you prior to execution of this Agreement.

 

10.           Choice of Law; Severability; Waiver. This Agreement
will be governed by the laws of the State of California, United States. If any provision of
this Agreement, or portion thereof, shall be held invalid or unenforceable by a
court of competent jurisdiction, such invalidity or unenforceability shall
attach only to such provision or portion thereof, and shall not in any manner
affect or render invalid or unenforceable any other provision, or portion thereof,
of this Agreement. For the avoidance of doubt, the laws of
England shall not apply to your employment or termination in, or transfer to, the
United States. You will remain responsible for any taxes or reporting
obligations, if any, under the laws of England for any income or benefits
received by you. No breach of any provision hereof can be waived unless in
writing. Waiver of any one breach of any provision hereof will not be deemed to
be a waiver of any other breach of the same or any other provision of this
Agreement.

 

9

 

11.           Successors and Assigns. The Company may assign this Agreement to
any successor (whether by amalgamation, merger, consolidation, sale of assets, purchase
or otherwise) to all or substantially all of the equity, assets or business of
the Company, and this Agreement will be binding upon and inure to the benefit
of such successors and assigns, including any successor entity.

 

12.           Notice. Any and all notices required or permitted to be given  to you or the Company Group pursuant to
the provisions of this Agreement will be in writing, and will be effective and deemed to provide
such party sufficient notice hereunder on the earliest of the following: (i) at
the time of personal delivery, if delivery is in person; (ii) one (1) business
day after deposit with an express overnight courier for United States deliveries,
or two (2) business days after such deposit for deliveries outside of the
United States; (ii) three (3) business days after deposit in the United States
mail by certified mail (return receipt requested) for United States deliveries.
All notices not delivered personally will be sent with postage and/or other
charges prepaid and properly addressed to the party to be notified at the
address set forth below their respective signature hereto, or at such other
address as such party may designate by one of the indicated means of notice
herein to the other party hereto.

 

13.           Withholding and Taxes. The Company shall have the right to
withhold and deduct from any payment hereunder any federal, state or local
taxes of any kind required by law to be withheld with respect to any
such payment.  The Company (including without limitation members of the Board) shall
not be liable to you or other persons as to any unexpected or adverse tax
consequence realized by you and you shall be solely responsible for the timely
payment of all taxes
arising from this Agreement that are imposed on you.

 

14.           Duration of Offer. A duplicate original of this offer is
enclosed for your records. This offer will remain open until February 28, 2010. If you decide to accept the
terms of this Agreement,
please sign the enclosed copy of this Agreement and the Employee Invention Assignment
and Confidentiality Agreement in the space indicated and return it to  me. Your signature will acknowledge that
you have read and understood and agreed to the terms and conditions of this
Agreement and Employee Invention Assignment and Confidentiality Agreement. Should
you have anything else that you wish to discuss, please do not hesitate to call
me. We look forward to working with you at RealD.

 

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Real D

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael V. Lewis

  
	
   

  	
   

  	
   

  	
  Michael V. Lewis

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  

 

I have read, understand, and accept this employment offer. Furthermore,
in choosing to accept this offer, I agree that I am not relying on any
representations, whether verbal or written, except as specifically set out
within this Agreement.

 

 

	
  /s/ Robert J. Mayson

  	
   

  	
   

  
	
  Employee Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robert J. Mayson

  	
   

  	
   

  
	
  Printed Name

  	
   

  	
   

  	
   

  
	
  Date: February 25, 2010

  	
   

  	
   

  	
   

  

 

10

 

Date: February 25, 2010

 

	
  Enclosures:

  	
   

  	
  Duplicate Original Letter

  
	
   

  	
   

  	
  RealD Employee Invention Assignment and
  Confidentiality Agreement 

  
	
   

  	
   

  	
  RealD Europe Director Resignation Letter

  
	
   

  	
   

  	
  Fiscal 2011 Bonus Objectives

  

 

11Exhibit 10.38

 

 

Mr R Mayson

Church View

36a Lukes Lea

Marsworth

HP23 4NH

 

November 5, 2008

 

Dear Bob

 

EMPLOYMENT WITH REALD EUROPE LIMITED

 

As  discussed, I enclose the proposed
contract of employment for your new
role with RealD Europe  Limited. Please sign this contract and
return a copy of it to me.

 

Stock Options

 

In addition to the
benefits set out in the enclosed employment agreement, you will be entitled to participate in the REALD 2004
Amended and Restated Stock Incentive Plan (the “Plan”). Your rights under the Plan will be determined exclusively
in accordance with the terms and conditions and other governing documentation
of the Plan from time to time in force, including but not limited to the terms
of grant of stock options under the Plan. For the avoidance of doubt, the grant
of any stock options under the Plan is a matter entirely separate from your
employment with RealD Europe Limited.

 

The Board of RealD
Europe Limited (the “Board”) will recommend to the Board of Directors of REAL D  that, upon commencement of your employment, you are granted an
option to purchase 20,000
shares of common stock, subject to the terms and conditions and other governing
documentation of the Plan from time to time in force.

 

The Board will
also recommend to the Board of Directors of REAL D that your options shall vest
according to the  following:

 

For each, 100
Newly-Contracted Screens ordered as a direct result of your efforts, you shall
vest 1,000 shares of common stock, subject to the terms and conditions and other governing documentation of the Plan
from time to time in force. The determination of whether the relevant order of
Newly-Contracted Screens was made as a direct result of the Executive’s efforts
shall be made by the Board in its absolute discretion (without you being
entitled to vote on the issue). “Newly-Contracted Screens”, for these purposes, means
theatrical exhibition auditoriums equipped with the REAL D 3D System in
respect of which the Company receives a purchase order from any company to whom no member of the
RealD group has sold such screens prior to the commencement of your employment with RealD Europe Limited.

 

In
accepting the grant of the above options, you agree that you waive all and any
rights to compensation or damages in consequence of the termination of your
office or employment with any company for any reason whatsoever (whether such
cessation is lawful or unlawful) insofar as those rights arise, or may arise,
from your ceasing to have rights under or be entitled to an option as a result of
such termination or from the loss or diminution in value of such option, rights
or

 

100
N. Crescent Dr. Suite 120 Beverly Hills, CA 90210 | www.reald.com

 

 

entitlements.
If necessary, the terms of your employment shall be deemed to be varied accordingly.

 

Yours
sincerely

 

 

	
  /s/ Andrew A. Skarupa

  	
   

  
	
  Andrew A. Skarupa

  For and on  behalf of RealD Europe Limited

  	
   

  

 

 

I agree to accept the grant of any stock options on the
terms set out in this letter.

 

	
  Signed:

  	
  /s/
  Robert Mayson

  	
   

  
	
   

  	
  Robert
  Mayson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  6th November

  	
   

  

 

 

 

DATED November 2008

 

 

BETWEEN

 

REALD EUROPE LIMITED

 

and

 

ROBERT MAYSON

 

 

DIRECTOR’S SERVICE AGREEMENT

 

 

 

Baker & McKenzie LLP

 

 

 

THIS AGREEMENT is made
on the         day of November 2008

 

B E T W E E N:

 

(1)           RealD Europe Limited, a company
registered in England with registered number 6732875, whose registered office
is at 100 New Bridge Street, London, EC4V 6JA (“the Company”);

 

and

 

(2)           Robert Mayson of Church View, 36a Likes Lea,
Marsworth, HP23 4NH

 

(“the Executive”)

 

WHEREAS the Board of
Directors of the Company (“the Board”) have approved the terms of this
Agreement under which the Executive is to be employed.

 

IT IS HEREBY AGREED as
follows:-

 

1.             APPOINTMENT

 

The Company shall
employ the Executive and the Executive shall serve the Company as Managing
Director on and subject to the terms and conditions specified herein (“the
Employment”).

 

2.             COMMENCEMENT OF EMPLOYMENT

 

2.1           The Employment commenced on 3 November 2008 (“the Commencement
Date”) and shall continue for a period of twelve months, expiring on 2 November 2009,
subject to earlier termination by either party on three months’ written notice,
or under Clause 15 below.

 

2.2           The parties  shall have the option of renewing this
Agreement for
successive terms, subject to agreement in writing regarding such renewals, which option shall be discussed on or around the nine-month
anniversary of the Commencement Date.

 

2.3           The Executive’s period of continuous
employment will begin on the Commencement Date. No previous employment with any other
employer shall be treated as continuous with the Employment.

 

3.             DUTIES

 

3.1           The Executive shall be employed in the
post of Managing Director in which capacity he shall devote all necessary time,
attention and skill to his duties hereunder, and shall at all times act in the
interests of the Company and its Associated Companies, and shall faithfully and
diligently perform such duties and exercise such powers consistent therewith as
may from time to time be assigned to or vested in him by the Board or the
Company.

 

3.2           The Company reserves the right to assign
to the Executive duties of a different nature either additional to or instead
of those referred to in Clause 3.1 above, it being understood that he will not
be assigned duties which he cannot reasonably perform. The Company reserves the
right to require that the Executive shares his responsibilities with another
employee of the Company of similar status to him.

 

100
N. Crescent Dr. Suite 120 Beverly Hills, CA 90210 | www.reald.com

 

 

3.3           The Executive shall obey the
reasonable and lawful orders of the Board, given by or with the authority of
the Board, and shall comply with all the Company’s rules, regulations, policies
and procedures from time to time in force.

 

3.4           The Executive may be required
in pursuance of his duties to perform services not only for the Company but
also for any Associated Company and, without further remuneration (except as otherwise
agreed), to accept any such office or position in any Associated Company which
is consistent with his position with the Company, as the Board or the
Company may from time to time reasonably require. The Company may at its sole
discretion assign the Executive’s employment to any Associated Company on the
same terms and conditions as set out herein.

 

3.5           The Executive shall work such
hours as are necessary for the proper performance of his duties of employment,
without any right to further remuneration in addition to that provided under this
Agreement. The Executive agrees that the characteristics of his position are
such that the duration of his working time is not
predetermined.

 

4.             EXCLUSIVITY
OF SERVICE

 

4.1           Subject to any written
regulations issued by the Company which are applicable to him, neither the
Executive nor his Immediate Relatives, nor any company business entity in which
he or they are interested, shall be entitled to receive or obtain directly or
indirectly any discount, rebate, commission or other benefit in respect of any
business transacted (whether or not by the Executive) by or on behalf of the Company
or any Associated Company, and if the Executive, his Immediate Relatives or any
company or business entity in which he or they is/are interested, shall
directly or indirectly obtain any such discount, rebate,
commission or other benefit the Executive shall forthwith account
to the Company or the applicable Associated Company for the amount received or value of the benefit so obtained.

 

4.2           The Executive confirms that
he has disclosed fully to the Company all circumstances in respect of
which there is, or there might be, a conflict of interest between
the Company or any Associated Company, and the Executive or his
Immediate Relatives, and he agrees to disclose fully to the
Company any such circumstances which may arise during the Employment.

 

5.             REMUNERATION

 

5.1           The Company shall pay to the
Executive a base salary of £6,245 per month, payable monthly in arrears by
equal instalments, and subject to deductions for tax and National Insurance. The Executive
shall have no automatic right to any increase in his salary.

 

5.2           The Executive shall also be
entitled to receive further remuneration by way of a bonus calculated in
accordance with, and subject to, Schedule 1 attached hereto, subject to
deductions for tax and National Insurance.

 

5.3           The remuneration specified in
Clause 5.1 and 5.2 above shall be inclusive of any fees to which the Executive
may be entitled as a Director of the Company or of any Associated Company.

 

5.4           The Company will reimburse
the Executive for all reasonable business expenses properly
incurred by him in the course of the Employment, subject to presentation of
valid receipts or other satisfactory evidence of the expenses and subject to the Company’s rules and policies
relating to expenses in place from time to time.

 

6.             DEDUCTIONS

 

The
Company shall be entitled at any time during the Employment, or in any event on
termination, to deduct from the Executive’s remuneration hereunder any monies
due from him

 

 

to
the Company including but not limited to any outstanding loans, advances, the cost
of repairing any damage or loss to the Company’s property caused
by him (and of recovering the same), excess holiday, any sums due from him
under Clause 8.5 below and any other monies owed by him to the Company.

 

7.           PLACE
OF WORK

 

The Executive’s place of work shall be his home or
any place as the Company shall from time to time advise him. In the performance
of his duties hereunder, the Executive may be required to travel both
throughout and outside the United Kingdom.

 

8.           SICKNESS
BENEFITS

 

8.1          In case of sickness or other
incapacity for work, the Executive must comply with the Company’s rules, from
time to time in force, regarding sickness notification and doctor’s
certificates, details of which can be obtained from Board.

 

8.2          The Company reserves the
right to require the Executive to undergo a medical examination by a doctor or
consultant nominated by it, in which event the Company will bear the cost
thereof.

 

8.3          The Executive will be paid
Statutory Sick Pay (“SSP”) when he is eligible to receive it under the
legislation and regulations from time to time in force. The Executive otherwise
has no entitlement to any payment (including payment of salary) in respect of
any days of sickness absence.

 

8.4          Any outstanding or
prospective entitlement to Statutory Sick Pay shall not prevent the Company
from exercising its right to terminate or allow expiry of the Employment in
accordance with Clauses 2 or 15 hereof or otherwise and the Company shall not
be liable for any loss arising from such termination.

 

8.5          If the illness, accident or
other incapacity shall be, or appear to be, caused by actionable negligence of
a third party in respect of which damages are or may be recoverable, the
Executive shall immediately notify the Board of that fact and of any claim,
compromise, settlement or judgement made or awarded in connection with it. The
Executive shall also give to the Board all particulars the Board may reasonably
require and shall, if required by the Board, refund all or such part of the
sums paid to or for the benefit of him by way of salary, bonus or benefits
during the relevant period as the Board may reasonably determine. The amount to
be refunded shall not, however, exceed the amount of damages or compensation
and interest thereon recovered by the Executive, less any unrecovered costs
borne by him, in connection with the recovery of such damages or compensation,
and shall not exceed the total remuneration paid to him by way of salary, bonus
and benefits in respect of the period of such illness, accident or other
incapacity.

 

9.           HOLIDAYS

 

9.1          The Executive shall be
entitled to receive his normal remuneration for 5 weeks’ holiday in each
holiday year (1 January to 31 December), in addition to all Bank and
Public holidays normally observed in England. The Executive may only take his
holiday at such times as are agreed with the Board.

 

9.2          In the holiday years in
which the Employment commences or terminates the entitlement to holiday shall
accrue on a pro rata basis for each complete month of service.

 

9.3          The Company reserves the
right, at its sole discretion, to require the Executive to take all or part of
any outstanding holiday during any notice period or to make payment in lieu
thereof.

 

 

9.4         Holiday entitlement for one
holiday year cannot be taken in subsequent holiday years. Failure to take
holiday entitlement in the appropriate holiday year will lead to forfeiture of
any accrued holiday not taken without any right to payment in lieu thereof.

 

10.          PENSION

 

The Company does not provide occupational
pension benefits to the Executive. There is therefore no contracting out
certificate in force in relation to the State Second Pension.

 

11.          REASONABLENESS
OF RESTRICTIONS

 

The Executive recognises that, whilst
performing his duties for the Company, he will have access to and come into
contact with trade secrets and confidential information belonging to the
Company or to Associated Companies and will obtain personal knowledge of and
influence over its or their customers and/or employees. The Executive therefore
agrees that the restrictions contained or referred to in Clauses 12 and 14 and
Schedule 2 are reasonable and necessary to protect the legitimate business
interests of the Company and its Associated Companies both during and after the
termination of his employment.

 

12.          CONFIDENTIALITY

 

12.1         The Executive shall neither
during the Employment (except in the proper performance of his duties) nor at
any time (without limit) after the termination thereof, directly or indirectly

 

(a)           use for his own purposes or
those of any other person, company, business entity or other organisation
whatsoever; or

 

(b)           disclose to any person,
company, business entity or other organisation whatsoever;

 

any trade secrets or confidential information relating or belonging to
the Company or its Associated Companies including but not limited to any such
information relating to customers, customer lists or requirements, price lists
or pricing structures, sales and marketing information, business plans or
dealings, employees or officers, source codes and computer systems, software,
financial information and plans, designs, formulae, prototypes, product lines,
services, research activities, any document marked ‘Confidential’ (or with a
similar expression), or any information which the Executive has been told is
confidential or which he might reasonably expect the Company would regard as
confidential, or any information which has been given to the Company or
Associated Company in confidence by customers, suppliers or other persons.

 

12.2         The Executive shall not at
any time during the continuance of his employment with the Company make any
notes or memoranda relating to any matter within the scope of the Company’s
business, dealings or affairs otherwise than for the benefit of the Company or
any Associated Company.

 

12.3         The obligations contained in
Clause 12.1 shall not apply to any disclosures required by law, and shall cease
to apply to any information or knowledge which may subsequently come into the
public domain after the termination of employment other than by way of
unauthorised disclosure.

 

13.          INTELLECTUAL
PROPERTY, INVENTIONS AND PATENTS

 

13.1         All records, documents,
papers (including copies and summaries thereof), works and any other
intellectual property and related rights (“Works”) made or acquired by the
Executive in the course of the Employment shall, together with all the
worldwide right title and interest in all the Works, be and at all times remain
the absolute property of the Company.

 

 

13.2         The Executive hereby
irrevocably and unconditionally waives all rights granted by Chapter IV of Part I
of the Copyright, Designs and Patents Act 1988 that vest in him (whether
before, on or after the date hereof) in connection with his authorship of any
copyright works in the course of his employment with the Company, wherever in
the world enforceable, including without limitation the right to be identified
as the author of any such works and the right not to have any such works
subjected to derogatory treatment.

 

13.3         The Company and the
Executive acknowledge and accept the provisions of Sections 39 to 42 of the
Patents Act 1977 (“the  Act”) relating to the ownership of
employees’ inventions and the compensation of employees for certain inventions
respectively.

 

13.4         The Executive acknowledges
and agrees that, by virtue of the nature of his duties and the responsibilities
arising, he has a special obligation to further the interests of the Company
within the meaning of Section 39(l)(b) of the Act.

 

13.5         Any invention, development,
process, plan, design, formula, specification, programme or any other matter or
work whatsoever, including but not limited to any applications to protect such
matter or works (collectively “the Inventions”) made, developed or discovered
by the Executive, either alone or in concert, during the course of the Executive’s
duties of employment for the Company shall forthwith be disclosed to the
Company and, subject to Section 39 of the Act, shall belong to and be the
absolute property of the Company.

 

13.6         With respect to those rights
in the Inventions which do not belong to the Company pursuant to Clause 13.5
but which were made (wholly or partly, either alone or in concert) using the
Company’s equipment, or (wholly or partly, either alone or in concert) using
information obtained during the course of the Executive’s employment, or else
are inventions which are or may be relevant to or related to the Company’s
existing or future business (collectively “Executive Rights”), the Executive at
the request and cost of the Company (and notwithstanding the termination of his
employment) shall forthwith license or assign (as determined by the Company) to
the Company the Executive Rights and shall deliver to the Company all documents
and other materials relating to the Inventions. The Company shall pay to the Executive
such compensation for the licence or assignment as the Company shall determine
in its absolute discretion, subject to Section 40 of the Act.

 

13.7       The Executive shall at the
request and cost of the Company (and notwithstanding the termination of his
employment) sign and execute all such documents and do all such acts as the
Company may reasonably require:-

 

(a)           to absolutely vest the full
right, title and interest in and to the Works hereby assigned and in the
Executive Rights that both parties have agreed from time to time to assign in
the Company;

 

(b)           to apply for and obtain in
the sole name of the Company alone (unless the Company otherwise directs)
patent, registered design, or other protection of any nature whatsoever in
respect of the Inventions and/or Works in any country throughout the world and,
when so obtained or vested, to renew and maintain the same(“Registered
Rights”);

 

(c)           to resist any objection or
opposition to obtaining, and any petitions or applications for revocation of,
any Registered Rights;

 

(d)           to bring any proceedings for
infringement of any Registered Rights; and

 

(e)           otherwise to give effect to
the assignments, waivers and licences contemplated under this Clause 13.

 

 

13.8         The Company shall decide, in
its sole discretion, when and whether to apply for patent, registered design or
other protection in respect of the Inventions and reserves the right to work
any of the Inventions as a secret process in which event the Executive shall
observe the obligations relating to confidential information which are
contained in Clause 12 of this Agreement.

 

14.          POST-TERMINATION OBLIGATIONS

 

14.1         The Executive agrees that he
will observe the post-termination obligations set out in Schedule 2 hereto.

 

14.2         The Executive agrees that in
the event of receiving from any person, company, business entity or other
organisation an offer of employment either during the continuance of this
Agreement or during the continuance in force of any of the restrictions set out
in Schedule 2 annexed hereto, he will forthwith provide to such person,
company, business entity or other organisation making such an offer of
employment a full and accurate copy of Clause 14 hereof, and Schedule 2 annexed
hereto.

 

15.          TERMINATION

 

15.1         Notwithstanding the
provisions of Clause 2.1 above, the Company may terminate the Employment
without notice, or pay in lieu of notice, if the Executive shall at any time:-

 

(a)           be guilty of dishonesty, or
other gross misconduct, or gross incompetence or wilful neglect of duty, or
commit any other serious breach of this Agreement; or

 

(b)           act in any manner (whether
in the course of his duties or otherwise) which is likely to bring him, the
Company or any Associated Company into disrepute or prejudice the interests of
the Company or any Associated Company; or

 

(c)           become bankrupt, apply for
or have made against him a receiving order under Section 286 Insolvency
Act 1986, or have any order made against him to reach a voluntary arrangement
as defined by Section 253 of that Act; or

 

(d)           resign as a director of the
Company or any Associated Company (without the Board’s written consent); or

 

(e)           be or become of unsound
mind; or

 

(t)            for an aggregate period of
30 days or more during the term of the Employment be incapable of performing his
duties hereunder by reason of ill health or other incapacity (whether
accidental or otherwise); or

 

(g)           be guilty of continuing
unsatisfactory conduct or poor performance of his duties, after having received
a written warning from the Company relating to the same; or

 

(h)           be convicted of an
indictable offence; or

 

(i)            be or become prohibited by
law from being a director; or

 

(j)            directly or indirectly
advise or participate or act in concert (within the meaning of the City Code on
Take-Overs and Mergers) with any person who makes or is considering making any
offer for the issued share capital of the Company.

 

Any
delay by the Company in exercising such right to termination shall not
constitute a waiver thereof.

 

 

 

15.2                           On termination of the Employment, the
Executive shall forthwith return to the Company in accordance with its
instructions all equipment, correspondence, records, specifications, software,
models, notes, reports and other documents and any copies thereof and any other
property belonging to the Company or its Associated Companies (including but
not limited to keys, credit cards, equipment and passes) which are in his
possession or under his control. The Executive shall, if so required by the
Company, confirm in writing his compliance with his obligations under this
Clause 15.2.

 

15.3                           The Executive agrees that the Company may
at its absolute discretion:-

 

(a)                                  require the Executive not to attend at
work and/or not to undertake all or any of his duties hereunder during the
remainder of the fixed term of the Employment referred to in Clause 2.1 or the
remaining part of any notice period (where applicable), PROVIDED ALWAYS that
the Company shall continue to pay the Executive’s salary and contractual
benefits; and/or

 

(b)                                 terminate the Executive’s employment
forthwith and make a payment or payments (which may, at the Company’s absolute
discretion, be paid in instalments) representing salary in lieu of the
remainder of the fixed term of the Employment referred to in Clause 2.1 or the
remaining part of any notice period (where applicable). For the avoidance of
doubt, such payment or payments shall not include the value of any benefits,
bonus/incentive, commission, or holiday entitlement which would have accrued to
the Executive had he been employed until the expiry of the fixed term of the
Employment referred to in Clause 2.1 or the remaining part of any notice period
(where applicable) and, further, the Executive shall have no entitlement to
such payment or payments unless and until the Company notifies the Executive in
writing of its decision to make such payment(s) to him.

 

15.4                           The Company shall have the right to
suspend the Executive pending any investigation into any potential dishonesty,
gross misconduct or any other circumstances which may give rise to a right to
the Company to terminate pursuant to Clause 15.1 above.

 

15.5                           The termination of the Employment shall
be without prejudice to any right the Company may have in respect of any breach
by the Executive of any of the provisions of this Agreement which may have
occurred prior to such termination.

 

15.6                           The Executive agrees that he will not at
any time after the termination of the Employment represent himself as still
having any connection with the Company or any Associated Company, save as a
former employee for the purpose of communicating with prospective employers or
complying with any applicable statutory requirements.

 

15.7                           The Executive hereby agrees that, in the
event of the expiry of the fixed term of his employment hereunder without it
being renewed, he shall have no claim against the Company under Section 135
Employment Rights Act 1996 in respect of a statutory redundancy payment.

 

16.                               DIRECTORSHIPS

 

16.1                           The Executive shall forthwith resign in
writing from all directorships, trusteeships and other offices he may hold from
time to time with the Company or any Associated Company without compensation
for loss of office in the event of:-

 

(a)                                  the termination of his employment; or

 

(b)                                 either the Company or the Executive
serving on the other notice of termination of the Employment; or

 

 

(c)                                  the Company
exercising its rights under Clause 15.3 above.

 

16.2                           In the event of
the Executive failing to comply with his obligations under Clause 16.1 above,
he hereby irrevocably and unconditionally authorises the Company to appoint
some person in his name and on his behalf to sign or execute any documents
and/or do all things necessary or requisite to give effect to such resignations
as referred to in Clause 16.1 above.

 

17.                               LIQUIDATION
FOR RECONSTRUCTION OR AMALGAMATION

 

The
Executive shall have no claim against the Company if the Employment is
terminated by reason of the liquidation of the Company for the purposes of
amalgamation or reconstruction provided that he is offered employment with any
concern or undertaking resulting from such amalgamation or reconstruction on
terms and conditions which, taken as a whole, are not substantially less
favourable that the terms of this Agreement.

 

18.                               GRIEVANCE
PROCEDURE

 

If
the Executive has any grievance relating to the Employment, he should raise it
with the Board and thereafter (if the matter is not resolved) with the Board.
In such a case the Board will deal with the matter by discussion and majority
decision of those present and voting (but without the Executive being entitled
to vote on that issue).

 

19.                               SEVERABILITY

 

The
various provisions and sub-provisions of this Agreement and the Schedules
attached hereto are severable and if any provision or sub-provision is held to
be unenforceable by any court of competent jurisdiction then such
unenforceability shall not affect the enforceability of the remaining
provisions or sub-provisions in this Agreement or Schedules.

 

20.                               WARRANTY

 

The
Executive represents and warrants that he is not prevented by any agreement,
arrangement, contract, understanding, Court Order or otherwise, which in any
way directly or indirectly restricts or prohibits him from fully performing the
duties of the Employment, or any of them, in accordance with the terms and
conditions of this Agreement.

 

21.                               NOTICES

 

21.1                           Any notice to
be given hereunder may be delivered (a) in the case of the Company by
first class post addressed to its Registered Office for the time being and (b) in
the case of the Executive, either to him personally or by first class post to
his last known address.

 

21.2                           Notices served
by post shall be deemed served on the second business day after the date of
posting. For the purposes of this Clause, “business day” means a day on which
banks are open for business in the place of both the posting and the address of
the notice.

 

22.                               DEFINITIONS

 

In
this Agreement the following words and cognate expressions shall have the
meanings set out below:-

 

22.1                           an “Associated
Company” includes any firm, company, corporation or other organisation:-

 

(a)                                  which is
directly or indirectly controlled by the Company; or

 

(b)                                 which directly
or indirectly controls the Company; or

 

 

	
  Witness’
  Name

  	
  Y.C.
  MAYSON

  	
   

  
	
   

  	
   

  	
   

  
	
  Address

  	
  36A
  LUKES LEA

  	
   

  
	
   

  	
   

  	
   

  
	
  Occupation

  	
  Home
  maker

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
  /s/
  Y.C. Mayson

  	
   

  

 

 

	
  EXECUTED
  AS A DEED

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  by
  RealD Europe Limited

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  acting
  by Michael V Lewis and

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Andrew
  A Skarupa

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
  

  
	
   

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  Director

  

 

 

SCHEDULE
1

 

BONUS

 

The bonus to which the
Executive shall be entitled in accordance with Clause 5.2 of the Agreement
shall be calculated in accordance with and subject to the following conditions:

 

1.                                       Subject to the remaining paragraphs of
this Schedule, the Executive shall received a bonus of £6,245, less deductions
for tax and National Insurance, for every 100 Newly-Contracted Screens ordered
as a direct result of the Executive’s efforts.

 

2.                                       For the purposes of this Schedule I, the
following words and phrases shall have the meanings set out below:-

 

2.1                                 “Bonus” means the payments anticipated
pursuant to paragraph I above.

 

2.2                                 “Newly-Contracted Screens” means
theatrical exhibition auditoriums for which a RealD 3D system does not
previously exist, in respect of which the Company receives a purchase order
from any company to whom neither the Company nor any Associated Company has
sold such screens prior to the commencement of the Employment.

 

3.                                       The Bonus shall be payable to the
Executive in UK pounds (less deductions for tax and National Insurance) at the
applicable rate of exchange applied by the Company’s bank on the date of
exchange, within 45 days of the Company’s receipt of payment from the relevant
customer in respect of those Newly-Contracted Screens.

 

4.                                       The Executive’s entitlement to any Bonus
shall automatically laps in the event that, before the relevant purchase order
for Newly-Contracted Screens is received, either he or the Company has served
notice of termination of employment (whether in full or in part), or the
Executive’s employment terminates (whether by expiry of his contract of
employment or otherwise).

 

5.                                       For the avoidance of doubt, the Executive
shall not be entitled to any Bonus in respect of the installation of screens.

 

 

SCHEDULE 2

 

1.                                       Non-Competition

 

The
Executive hereby agrees that he shall not (without the consent in writing of
the Board) for the Relevant Period within the Prohibited Area and whether on
his own behalf or in conjunction with or on behalf of any other person, firm,
company or other organisation, (and whether as an employee, director,
principal, agent, consultant or in any other capacity whatsoever,) in
competition with the Company be directly or indirectly (i) employed or
engaged in, or (ii) perform services in respect of, or (iii) be
otherwise concerned with:-

 

1.1                                 the research
into, development, manufacture, supply or marketing of any product which is of
the same or similar type to any product researched, or developed, or
manufactures, or supplied, or marketed by the Company during the six months
immediately preceding the Termination Date;

 

1.2                                 the development
or provision of any services (including but not limited to technical and
product support, or consultancy or customer services) which are of the same or
similar type to any services provided by the Company during the six months
immediately preceding the Termination Date;

 

PROVIDED
ALWAYS that the provisions of this paragraph I shall apply only in respect of
products or services with which the Executive was either personally concerned
or for which he was responsible whilst employed by the Company during the six
months immediately preceding the Termination Date.

 

2.                                       Non-Solicitation
of Customers

 

The
Executive hereby agrees that he shall not for the Relevant Period whether on his
own behalf or in conjunction with or on behalf of any person, company, business
entity or other organisation (and whether as an employee, director, principal,
agent, consultant or in any other capacity whatsoever), directly or indirectly (i) solicit
or, (ii) assist in soliciting, or (iii) accept, or (iv) facilitate
the acceptance of, or (v) deal with, in competition with the Company, the
custom or business of any Customer or Prospective Customer:-

 

2.1                                 with whom the
Executive has had material contact or dealings on behalf of the Company during
the six months immediately preceding the Termination Date; or

 

2.2                                 for whom the
Executive was, in a client management capacity on behalf of the Company,
directly responsible during the six months immediately preceding the
Termination Date.

 

3.                                       Non-Solicitation
of Employees

 

The
Executive hereby agrees that he will not for the Relevant Period either on his
own behalf or in conjunction with or on behalf of any other person, company,
business entity, or other organisation (and whether as an employee, principal,
agent, consultant or in any other capacity whatsoever), directly or
indirectly:-

 

3.1                                 (i) induce, or (ii) solicit,
or (iii) entice or (iv) procure, any person who is a Company Employee
to leave the Company’s or any Associated Company’s employment (as applicable);

 

3.2                                 be personally
involved to a material extent in (i) accepting into employment or (ii) otherwise
engaging or using the services of, any person who is a Company Employee.

 

 

4.                                       Interference
with Suppliers

 

The Executive hereby agrees that he shall not, whether on his own
behalf or in conjunction with or on behalf of any person, company, business
entity or other organisation, (and whether as an employee, director, agent,
principal, consultant or in any other capacity whatsoever), directly or
indirectly (i) for the Relevant Period and (ii) in relation to any
contract or arrangement which the Company has with any Supplier for the
exclusive supply of goods or services to the Company and/or to its Associated Companies,
for the duration of such contract or arrangement:

 

4.1                                 interfere with
the supply of goods or services to the Company from any Suppliers;

 

4.2                                 induce any
Supplier of goods or services to the Company to cease or decline to supply such
goods or services in the future.

 

5                                          Associated
Companies

 

5.1                                 The provisions
of paragraphs 5.2 and 5.3 below shall only apply in respect of those Associated
Companies (i) to whom the Executive gave his services, or (ii) for
whom he was responsible, or (iii) with whom he was otherwise concerned, in
the six months immediately preceding the Termination Date.

 

5.2                                 Paragraphs 1, 2,
3, 4 and 6 in this Schedule 2 shall apply as though reference to the “Associated
Company” were substituted for references to the “Company”. The obligations
undertaking undertaken by the Executive pursuant to this Schedule 2 shall, with
respect to each Associated Company, constitute a separate and distinct covenant
and the invalidity or unenforceability of any such covenant shall not affect
the validity or enforceability of the covenants in favour of the Company or any
other Associated Company.

 

5.3                                 In relation to
each Associated Company referred to in paragraphs 5.1 and 5.2 above, the
Company contracts as trustee and agent for the benefit of each such Associated
Company. The Executive agrees that, if required to do so by the Company, he
will enter into covenants in the same terms as those set out in paragraphs 1, 2,
3, 4 and 6 hereof directly with all or any of such Associated Companies,
mutatis mutandis. If the Executive fails, within 7 days of receiving such a
request from the Company, to sign the necessary documents to give effect to the
foregoing, the Company shall be entitled, and is hereby irrevocably and
unconditionally authorised by the Executive, to execute all such documents as
are required to give effect to the foregoing, on his behalf.

 

6.                                       Definitions

 

For the purposes of this Schedule 2, the following words and cognate
expressions shall have the meanings set out below:

 

6.1                                 “Associated Company”,
“Board”, and “Company” shall have the meanings set out in the Agreement
attached hereto, and shall include their successors in title and assigns (as
applicable).

 

6.2                                 “Company
Employee” means any person who was employed by (i) the company or (ii) any
Associated Company, for at least 3 months prior to and on the Termination Date
and

 

(a)                                  with whom the
Executive had material contact or dealings in performing his duties of his
employment; and

 

 

(b)                                 who had material contact with customers
or suppliers of the Company in performing his or her duties of employment with
the company or any Associated Company (as applicable); or

 

(c)                                  who was a member of the management team
of the Company or any Associated Company (as applicable); or

 

(d)                                 who was a member of the Research &
Development Department of the Company or any Associated Company (as
applicable).

 

6.3                                 “Customer” shall mean any person, firm,
company or other organisation whatsoever to whom the Company has supplied goods
or services.

 

6.4                                 “Prohibited Area” means:

 

(a)                                  the United Kingdom;

 

(b)                                 any other country in the world where, on
the Termination Date, the Company develops, sells, supplies, manufactures or
researches its products or services or where the Company is intending within 3
months following the Termination Date to develop, sell, supply or manufacture
its products or services and in respect of which the Executive has been
responsible (whether alone or jointly with others), concerned or active on
behalf of the Company during any part of the six months immediately preceding
the Termination Date.

 

6.5                                 “Prospective Customer” shall mean any
person, firm, company or other organisation with whom the Company has had any
negotiations or material discussions regarding the possible supply of goods or
services by the Company.

 

6.6                                 The “Relevant Period” shall mean the
lesser of:-

 

(a)                                  the six months immediately following the
Termination Date;

 

(b)                                 the period specified in sub-para 6.6(a) above
less the number of days on which the Executive has been required by the Company
(pursuant to Clause 15.3(a)) both not to attend at work and not to perform any
duties of employment.

 

6.7                                 “Supplier” means any person, company,
business entity or other organisation whatsoever who:

 

(a)                                  has supplied goods or services to the
Company during any part of the six months immediately preceding the Termination
Date; or

 

(b)                                 has agreed prior to the Termination Date
to supply goods or services to the Company to commence at any time in the six
months following the Termination Date; or

 

(c)                                  as at the Termination Date, supplies
goods or services to the Company under an exclusive contract or arrangement
between that Supplier and the Company.

 

“Termination Date” shall
have the meaning set out in Clause 22 of the Agreement.

 

 

(c)                                  which is directly
or indirectly controlled by a third party who also directly or indirectly
controls the Company; or

 

(d)                                 of which the
Company or any other Associated Company owns or has a beneficial interest in
20% or more of the issued share capital or 20% or more of its capital assets;
or

 

(e)                                  which is the
successor in title or assign of the firms, companies, corporations or other
organisations referred to above.

 

22.2                           “The Board”
shall mean the Board of Directors of the Company.

 

22.3                           “Control” has
the meaning ascribed by Section 416 Taxes Act 1988 (as amended).

 

22.4                           “Immediate
Relatives” shall include husband, wife, registered civil partner, common law
spouse, children, brothers, sisters, cousins, aunts, uncles, parents,
grandparents, and the aforesaid relatives by marriage or registered civil
partnership.

 

22.5                           “Termination
Date” shall mean the date upon which the Executive’s employment with the
Company terminates.

 

23.                               CONSTRUCTION

 

23.1                           The provisions
of Schedules 1 and 2 hereto and any additional terms endorsed in writing by or
on behalf of the parties hereto shall be read and construed as part of this
Agreement and shall be enforceable accordingly.

 

23.2                           The benefit of
each agreement and obligation of the Executive under Clauses 12 and 14 and
Schedule 2 hereto of this Agreement may be assigned to and enforced by all
successors and assigns for the time being of the Company and its Associated
Companies and such agreements and obligations shall operate and remain binding
notwithstanding the termination of this Agreement.

 

24.                               PRIOR
AGREEMENTS

 

This
Agreement cancels and is in substitution for all previous letters of
engagement, agreements and arrangements (whether oral or in writing) relating
to the subject-matter hereof between the Company and the Executive, all of which
shall be deemed to have been terminated by mutual consent. This Agreement
constitutes the entire terms and conditions of the Executive’s employment and
no waiver or modification thereof shall be valid unless in writing, signed by
the parties and only to the extent therein set forth.

 

25.                               GOVERNING
LAW AND JURISDICTION

 

This
Agreement is governed by and construed in accordance with the laws of England.
The parties hereto submit to the exclusive jurisdiction of the English Courts.

 

 

IN
WITNESS whereof the parties hereto have executed this
Agreement as a Deed the day and year first above written.

 

	
  SIGNED
  AS A DEED

  by
  Robert Mayson in

  the
  presence of

  	
   

  	
  }

  }

   

  }

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]