Document:

Exhibit
10.21

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”) is made
and entered into as of June 23, 2003, effective for all purposes and in all
respects as of June 23, 2003 (the “Commencement Date”) between MICROPATENT LLC,
a Delaware corporation (the “Company”), and Daniel Videtto (the
“Executive”).  The Company is a
wholly-owned subsidiary of Information Holdings Inc. (“IHI”).

 

R E C I T A L S:

 

WHEREAS, the Company recognizes that the future
growth, profitability and success of the Company’s business will be
substantially and materially enhanced by the employment of the Executive by the
Company; and

 

WHEREAS, the Company desires to employ the Executive
and the Executive has indicated his willingness to provide his services, on the
terms and conditions set forth herein.

 

NOW, THEREFORE, on the basis of the foregoing premises
and in consideration of the mutual covenants and agreements contained herein,
the parties hereto agree as follows:

 

Section 1. Employment.

 

(a)           Duties.  The Company hereby agrees to employ the
Executive and the Executive hereby accepts employment with the Company, on the
terms and subject to the conditions hereinafter set forth.  The Executive shall serve as President of
the Company, as well as President of Master Data Center, Inc. (“MDC”), an
affiliated company that is a subsidiary of IHI, or in any other senior
executive capacity designated by IHI and, as agreed to in writing by the
Executive.  The Company and MDC together
are hereafter referred to as the “Business”. 
In such capacity, the Executive shall report to the Chief Executive
Officer of IHI (the “CEO”) and shall have such duties as are typically
performed by a President of a corporation, together with such additional duties,
commensurate with the Executive’s position as President of a subsidiary of IHI,
as may be assigned to the Executive from time to time by the CEO or Board of
Directors of the Company (the “Board of Directors”).

 

(b)           Location.  The principal location of the Executive’s
employment initially shall be in East Haven, CT.  The Executive understands and agrees that he will be required to
travel regularly to MDC in Southfield, MI and may be required to travel for
business reasons.

 

 

Section 2. Term.  Unless terminated pursuant to Section 6 hereof, the Executive’s
employment hereunder shall commence on the date hereof and shall continue
during the initial period ending on the first anniversary of the date hereof
(the “Initial Term”).  Thereafter, the
Executive’s term of employment shall extend automatically for consecutive
periods of one (1) year unless either party shall provide notice of non-renewal
not less than one hundred and twenty (120) days prior to the end of the
Employment Term.  The Initial Term, together
with any extension pursuant to this Section 2, is referred to herein as the
“Employment Term”.  In the event that
the Company fails to renew the Employment Term by providing a notice of
non-renewal to the Executive, the Company shall permit the Executive to spend
time, during the normal working hours of such one hundred and twenty (120) day
period, pursuing future employment or similar opportunities and such actions on
the part of the Executive shall not be a breach or violation of this Agreement;
provided, that such endeavors by the Executive do not materially interfere with
the Executive’s duties hereunder or violate any of the provisions of Section 7
herein.

 

Section 3. Compensation.

 

(a)           Salary.  As compensation for the performance of the
Executive’s services hereunder, the Company shall pay to the Executive a salary
(the “Salary”) of $250,000 per annum, increased as of July 1 of each calendar
year during the Employment Term (beginning on July 1, 2004) by the then-current
inflation rate as reflected by the Consumer Price Index for Urban Wage Earners
and Clerical Workers for the New York Metropolitan Area, as published by the
Bureau of Labor Statistics of the U.S. Department of Labor.  The Salary shall be payable in accordance
with the payroll practices of the Company as the same shall exist from time to
time for its senior executive employees. 
In no event shall the Salary be decreased during the Employment Term.

 

(b)           Bonus
Plan.  Beginning in the calendar
year ending December 31, 2004, the Executive shall be eligible to receive an
annual cash bonus (“Bonus”) in an amount up to 50% of the Salary, based upon
meeting performance goals for each calendar year during the Employment
Term.  For the year ending December 31,
2003, the Executive shall be eligible to receive a cash bonus in an amount up
to 25% of the Salary, at the discretion of the CEO.  Annual performance goals shall be mutually determined by the
Executive, on the one hand, and the CEO or the Board of Directors, on the other
hand.  Bonus amounts shall be paid on or
before April 1 of the year immediately following the end of the calendar year
to which the Bonus relates.  In the
event of a termination of employment pursuant to Section 6(a), (b), (e), (f) or
(g) below, the Company shall pay to the Executive or the Executive’s estate a prorated
portion, through the date of termination and assuming the maximum performance
of the goals for the entire calendar year, of the Bonus for the calendar year
in

 

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which such termination occurs. 
In the event of such termination of employment, the prorated Bonus
amount shall be paid no later than three (3) months following such
termination.  For all purposes hereof,
it is understood and agreed that the Executive need not be employed by the
Company at the time that a Bonus amount is to be paid.

 

(c)           Benefits.  In addition to the Salary and Bonus, if any,
the Executive shall be entitled to participate in health, insurance, pension
and other benefits provided to other senior executives of the Company on terms
no less favorable than those available to such senior executives of the
Company.  The Executive shall also be
entitled to the same number of vacation days, holidays, sick days and other
benefits as are generally allowed to other senior executives the Company.

 

(d)           Stock
Options.  At the next regularly
scheduled meeting of the IHI Board of Directors following the Commencement
Date, the Company shall grant to Executive options to purchase 50,000 shares of
the common stock of IHI, par value $0.01 per share (the “Common Stock”) (the
option to purchase any one share of Common Stock hereafter referred to as an
“Option”). Each Option shall have an exercise price equal to the fair market
value of one share of Common Stock as of its respective date of grant.  The Options shall be un-exercisable until
vested.  The Options shall vest and
become exercisable at the rate of 25% per year at the end of each full year
after the grant date, provided Executive is then employed.  The Options shall be granted pursuant to the
IHI 1998 Stock Option Plan (the “Option Plan”) and shall be granted pursuant to
a separate Stock Option Agreement to be executed on the date of grant.

 

Section 4. Exclusivity.  During the Employment Term, the Executive
shall devote his full time to the Business, shall faithfully serve the
Business, shall in all respects conform to and comply with the lawful and
reasonable directions and instructions given to him by the CEO and Board of
Directors in accordance with the terms of this Agreement, shall use his
reasonable best efforts to promote and serve the interests of the Business and
shall not engage in any other business activity, whether or not such activity
shall be engaged in for pecuniary profit, except that the Executive may
(i) participate in the activities of professional trade organizations
related to the Business and (ii) engage in personal investing activities,
provided that activities set forth in these clauses (i) and (ii), either singly
or in the aggregate, do not interfere in any material respect with the services
to be provided by the Executive hereunder.

 

Section 5. Reimbursement for Expenses.  The Executive is authorized to incur
reasonable expenses in the discharge of

 

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the services to be performed hereunder, including expenses for travel,
entertainment, lodging and similar items in accordance with the Company’s
expense reimbursement policy for senior executives (which is understood to be
substantially equivalent to the policy in effect for IHI’s senior executives),
as the same may be modified by the CEO or the Board of Directors from time to
time.  The Company shall reimburse the
Executive for all such proper expenses upon presentation by the Executive of
itemized accounts of such expenditures in accordance with the financial policy
of the company, as in effect from time to time.

 

Section 6. Termination.

 

(a)           Death.  This Agreement shall automatically terminate
upon the death of the Executive, and upon such event, the Executive’s estate
shall be entitled to receive the amounts specified in Section 3(b) above and
6(h) below as if termination had occurred Without Cause (as defined below).

 

(b)           Disability.  If the Executive is fully unable to perform
the essential duties required of him under this Agreement, with or without
accommodation, because of illness, incapacity, or physical or mental
disability, this Agreement shall remain in full force and effect and the
Company shall pay all compensation required to be paid to the Executive
hereunder, unless the Executive is fully unable to perform the duties required
of him under this Agreement for an aggregate of 180 days (whether or not
consecutive) during any 12-month period during the Employment Term, in which
event this Agreement (other than Sections 7, 8 and 12 hereof), including, but
not limited to, the Company’s obligations to pay any Salary or other
compensation or to provide any privileges under this Agreement, shall terminate
at the end of the 180 days of complete disability.

 

(c)           Cause.  The Company may terminate the Executive’s
employment during the Employment Term with “Cause” as that term is defined
below.  In the event of termination
pursuant to this Section 6(c) with Cause, the Company shall deliver to the
Executive written notice setting forth the basis for such termination, which
notice shall specifically set forth the nature of the Cause which is the reason
for such termination.  Termination of
the Executive’s employment hereunder shall be effective upon delivery of such
notice of termination.  For purposes of
this Agreement, “Cause” shall mean:  (i)
the Executive’s failure (except where due to a disability contemplated by
Section 6(b) hereof), neglect or refusal to perform the essential duties of his
position hereunder which failure, neglect or refusal shall not have been
corrected by the Executive within 30 days of receipt by the Executive of
written notice from the Company of such failure, neglect or refusal, which
notice shall specifically and in detail set forth the nature of said failure,
neglect or refusal; (ii) any willful or intentional act of the Executive that
has the effect of injuring

 

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the reputation or business of the Company or its affiliates in any
material respect; (iii) any continued or repeated absence from the
Company, unless such absence is (A) approved or excused by the CEO or Board of
Directors or (B) is the result of the Executive’s illness, or incapacity (in
which event the provisions of Section 6(b) hereof shall control); (iv) use of
illegal drugs by the Executive or repeated drunkenness which drunkenness
affects the Executive’s ability to perform his duties hereunder; (v) conviction
of the Executive for the commission of a felony; or (vi) the commission by the Executive
of an act of fraud or embezzlement against the Company.

 

(d)           Resignation.  Unless otherwise provided in Section 6(f)
below in the case of a termination of employment for Good Reason, the Executive
shall have the right to terminate his employment at any time by giving notice
of his resignation to the Company.

 

(e)           Without
Cause.  The Company may terminate
the Executive’s employment during the Employment Term “Without Cause”, as that
term is defined below, at any time by giving notice to the Executive.  A termination of the Executive’s employment
“Without Cause” shall mean a termination initiated by the Company for any
reason other than Cause or on account of a Disability.  A termination Without Cause shall be
effective immediately upon notice given by the Company to the Executive.

 

(f)            Good
Reason.  The Executive shall have
the right to terminate his employment for Good Reason under the following
circumstances: (i) the failure by the Company to pay to the Executive the
Salary and Bonus, if any, in accordance with Sections 3(a) and 3(b) hereof;
(ii) the failure of the Company to provide the benefits in accordance with
Section 3(c) hereof; (iii) a material diminution in the Executive’s
responsibilities or authority; (iv) a requirement that the Executive relocate
outside of the greater Southwestern Connecticut area; or (v) the failure of any
successor to all or substantially all of the business and/or assets of the
Company to assume the Agreement; provided, however, that Good Reason shall not
exist upon a termination of employment described in Section 6(b), (c), (d) or
(e).  The date of termination of the
Executive’s employment under this Section 6(f) shall be the date the Executive
gives the Company written notice of a termination for Good Reason setting forth
the basis for such termination.

 

(g)           Change
of Control.  During the 90-day
period following a Change of Control, the Executive shall have the right to
immediately resign his employment.  A
Change of Control shall be deemed to have occurred:

 

(i)      upon the
acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange

 

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Act”)) (a “Person”), other than Warburg, Pincus Ventures, L.P., either
directly or indirectly through one or more affiliated entities (collectively
“Warburg”) or a subsidiary of IHI, of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (x)
the then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (y) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this subsection (i), the following acquisitions shall not
constitute a Change of Control: (A) any acquisition by the Company, (B) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or (C) any acquisition by any corporation pursuant to
a transaction which complies with clauses (A), (B), and (C) of subsection (iii)
of this Section 6(g); or

 

(ii)     upon the
consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (a
“Business Combination”), in each case, unless, following such Business
Combination, (A) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (B)
no Person (excluding (1) Warburg, (2) any corporation resulting from such Business
Combination (3) any IHI subsidiary, or (4) any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 50% or more of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation except to the extent
that such ownership existed prior to the Business Combination and (C) at least
a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Incumbent Board at
the time of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

 

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(iv)    upon the
approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company.

 

(h)           Payments.

 

(i)            In
the event that the Executive resigns or the Executive’s employment hereunder
terminates for Cause, the Company shall pay to the Executive all amounts
accrued but unpaid hereunder through the date of termination in respect of
Salary, unused vacation or un-reimbursed expenses.

 

(ii)           In
the event (A) the Executive’s employment hereunder is terminated by the Company
Without Cause, (B) the Executive’s employment hereunder is terminated by the
Executive for Good Reason or (C) the Executive resigns within 90 days following
a Change of Control pursuant to Section 6(g) hereof, in addition to the amounts
specified in (i) above, the Executive shall continue to receive the Salary
(less any applicable withholding or similar taxes) at the rate in effect
hereunder on the date of such termination periodically, in accordance with the
Company’s prevailing payroll practices, for twelve (12) months from the
effective date of the termination of employment (the “Severance Term”) and the
Executive (and/or his covered dependents) shall continue to receive any health
or insurance benefits provided to him as of the date of such termination in
accordance with Section 3(c) hereof during the Severance Term.

 

(iii)          In
the event that the Company fails to renew the Employment Term by providing to
the Executive a notice non-renewal pursuant to Section 2 herein, in addition to
the amounts specified in (i) above, the Executive shall continue to receive the
Salary (less any applicable withholding or similar taxes) at the rate in effect
hereunder on the date of the expiration of the Employment Term periodically, in
accordance with the Company’s prevailing payroll practices, for a period of
four (4) months from the expiration date of the Employment Term (the
“Non-renewal Term”) and the Executive (and/or his covered dependents) shall
continue to receive any health or insurance benefits provided to him as of the
date of such termination in accordance with Section 3(c) hereof during the
Non-renewal Term.

 

(iv)          Amounts
owed by the Company in respect of the Salary or reimbursement for expenses
under the provisions of Section 5 hereof shall, except as otherwise set forth
in this Section 6(h), be paid promptly upon any termination.  Upon any termination of this Agreement, all
of the rights, privileges and duties of the Executive hereunder shall cease,
except for his rights under this Section 6(h) and his obligations under
Sections 7, 8 and 12 hereunder.

 

(v)           If
the Executive secures employment, any consulting or other similar arrangement
during the period that any payment is continuing to the Executive pursuant to
the 

 

7

 

provisions of this Section 6(h), then the Company shall not have the
right to reduce the amounts to be paid hereunder by the amount of the
Executive’s earnings from such other employment, consulting or other
arrangement.

 

Section 7. Non-Disclosure, Non-Interference
and Inventions.

 

(a)           No
Competing Employment.  The Executive
acknowledges that the agreements and covenants contained in this Section 7 are
essential to protect the value of the Business and by his current employment
with the Company and its affiliates, the Executive has obtained and will obtain
such knowledge, contacts, know-how, training and experience and there is a
substantial probability that such knowledge, know-how, contacts, training and
experience could be used to the substantial advantage of a competitor of the
Business or its subsidiaries and to the substantial detriment of the Business
and IHI.  Therefore, the Executive
agrees that for the period commencing on the date of this Agreement and ending
on the first anniversary of the termination of the Executive’s employment
hereunder (such period is hereinafter referred to as the “Restricted Period”),
the Executive shall not engage, directly or indirectly, for himself or on
behalf of any person or entity, in any business activities which directly
compete with the intellectual property information business or intellectual
property asset management services of the Business or any of its subsidiaries or
which directly compete with any other product line of the Business or any
subsidiary or affiliate that the Executive becomes directly responsible for in
the course of his employment hereunder; provided, however, that the foregoing
shall not preclude the Executive from owning less than 1% of the shares of a
public company; and provided, further, that the foregoing restrictions do not
encompass working for those who license their own intellectual property.

 

(b)           Nondisclosure
of Confidential Information.  The
Executive, except in connection with his employment hereunder, shall not
disclose to any person or entity or use, either during the Employment Term or
at any time thereafter, any proprietary information not in the public domain or
generally known in the industry, in any form, acquired by the Executive while
employed by the Company or any predecessor to the Company’s business or, if
acquired following the Employment Term, such information which, to the
Executive’s knowledge, has been acquired, directly or indirectly, from any
person or entity owing a duty of confidentiality to the Company or any of its
subsidiaries or affiliates, relating to the Company, its subsidiaries or
affiliates.  The Executive agrees and
acknowledges that all of such information, in any form, and copies and extracts
thereof, are and shall remain the sole and exclusive property of the Business,
and upon termination of his employment with the Company, the Executive shall
return to the Company the originals and all copies of any such information
provided to or acquired by

 

8

 

the Executive in connection with the performance of his duties for the
Company, and shall return to the Company all files, correspondence and/or other
communications received, maintained and/or originated by the Executive during
the course of his employment.

 

(c)           No
Interference.  During the Restricted
Period, the Executive shall not, whether for his own account or for the account
of any other individual, partnership, firm, corporation or other business
organization (other than the Business), directly or indirectly solicit,
endeavor to entice away from the Business or its subsidiaries, or otherwise
directly interfere with the relationship of the Business or its subsidiaries
with, any person who, to the knowledge of the Executive, is employed by or
otherwise engaged to perform services for the Business or its subsidiaries
(including, but not limited to, any independent sales representatives or
organizations) or who is, or was within the then most recent twelve-month
period, a customer or client of the Business, its predecessors or any of its
subsidiaries.  The placement of any
general classified or “help wanted” advertisements and/or general solicitations
to the public at large shall not constitute a violation of this Section 7(c)
unless the Executive’s name is contained in such advertisements or
solicitations.

 

(d)           Inventions,
etc.  The Executive hereby sells,
transfers and assigns to the Company or to any person or entity designated by
the Company all of the entire right, title and interest of the Executive in and
to all inventions, ideas, disclosures and improvements, whether patented or
unpatented, and copyrightable material, made or conceived by the Executive,
solely or jointly, during his employment by the Company which relate to
methods, apparatus, designs, products, processes or devices, sold, leased, used
or under consideration or development by the Business or any of its
subsidiaries, or which otherwise relate to or pertain to the business,
functions or operations of the Business or any of its subsidiaries or which
arise from the efforts of the Executive during the course of his employment for
the Company.  The Executive shall
communicate promptly and disclose to the Company, in such form as the Company
requests, all information, details and data pertaining to the aforementioned
inventions, ideas, disclosures and improvements; and the Executive shall
execute and deliver to the Company such formal transfers and assignments and
such other papers and documents as may be necessary or required of the
Executive to permit the Company or any person or entity designated by the
Company to file and prosecute the patent applications and, as to copyrightable
material, to obtain copyright thereof. 
Any invention relating to the Business or any of its subsidiaries which
is discovered, designed, implemented or developed by the Executive within one
year following the termination of his employment with the Company shall be
deemed to fall within the

 

9

 

provisions of this paragraph unless proved to have been first conceived
and made following such termination.

 

Section 8. Injunctive Relief.  Without intending to limit the remedies
available to the Company, the Executive acknowledges that a breach of any of
the covenants contained in Section 7 hereof may result in material irreparable
injury to the Company or its subsidiaries or affiliates for which there is no
adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of such a breach or threat
thereof, the Company shall be entitled to obtain a temporary restraining order
and/or a preliminary or permanent injunction, without the necessity of proving
irreparable harm or injury as a result of such breach or threatened breach of
Section 7 hereof, restraining the Executive from engaging in activities
prohibited by Section 7 hereof or such other relief as may be required
specifically to enforce any of the covenants in Section 7 hereof.

 

Section  9. Representations and Warranties of
the Executive.  The Executive
represents and warrants to the Company as follows:

 

(a)  This
Agreement, upon execution and delivery by the Executive, will be duly executed
and delivered by the Executive and (assuming due execution and delivery hereof
by the Company) will be the valid and binding obligation of the Executive
enforceable against the Executive in accordance with its terms.

 

(b)  Neither
the execution and delivery of this Agreement nor the performance of this
Agreement in accordance with its terms and conditions by the Executive (i)
requires the approval or consent of any governmental body or of any other
person or (ii) conflicts with or results in any breach or violation of, or
constitutes (or with notice or lapse of time or both would constitute) a
default under, any agreement, instrument, judgment, decree, order, statute,
rule, permit or governmental regulation applicable to the Executive.  Without limiting the generality of the
foregoing, other than the provisions contained herein the Executive is not a
party to any non-competition, non-solicitation, no hire or similar agreement
that restricts in any way the Executive’s ability to engage in any business or
to solicit or hire the employees of any person.

 

The representations and warranties of the Executive
contained in this Section 9 shall survive the execution, delivery and
performance of this Agreement.

 

Section 10. Successors and Assigns; No Third-Party
Beneficiaries.  This Agreement shall
inure to the benefit of, and be binding upon, the successors and assigns of
each of the parties, including, but not limited to, the Executive’s heirs and
the personal representatives of the Executive’s estate; provided,

 

 

10

 

however, that neither party shall assign or delegate any of
the obligations created under this Agreement without the prior written consent
of the other party.  Notwithstanding the
foregoing, the Company shall have the unrestricted right to assign this
Agreement (subject to the Executive’s rights hereunder) and to delegate all or
any part of its obligations hereunder to any of its subsidiaries or affiliates,
but in such event such assignee shall expressly assume all obligations of the
Company hereunder and the Company shall remain fully liable for the performance
of all of such obligations in the manner prescribed in this Agreement.  Nothing in this Agreement shall confer upon
any person or entity not a party to this Agreement, or the legal
representatives of such person or entity, any rights or remedies of any nature
or kind whatsoever under or by reason of this Agreement.

 

Section 11. Waiver and Amendments.  Any waiver, alteration, amendment or modification
of any of the terms of this Agreement shall be valid only if made in writing
and signed by the parties hereto; provided, however, that any
such waiver, alteration, amendment or modification is consented to on the
Company’s behalf by the CEO or Board of Directors.  No waiver by either of the parties hereto of their rights
hereunder shall be deemed to constitute a waiver with respect to any subsequent
occurrences or transactions hereunder unless such waiver specifically states
that it is to be construed as a continuing waiver.

 

Section 12. Validity, Enforceability and
Governing Law.  The Executive
acknowledges and agrees that the covenants set forth in Section 7 hereof are
reasonable and valid in geographical and temporal scope and in all other respects.  The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision or provisions of this Agreement, which
shall remain in full force and effect. 
If any provision of this Agreement is held to be invalid, void or
unenforceable in any jurisdiction, any court or arbitrator so holding shall
substitute a valid, enforceable provision that preserves, to the maximum lawful
extent, the terms and intent of such provisions of this Agreement.  If any of the provisions of, or covenants
contained in, this Agreement are hereafter construed to be invalid or
unenforceable in any jurisdiction, the same shall not affect the remainder of
the provisions or the enforceability thereof in any other jurisdiction, which
shall be given full effect, without regard to the invalidity or
unenforceability in such other jurisdiction. 
Any such holding shall affect such provision of this Agreement, solely
as to that jurisdiction, without rendering that or any other provisions of this
Agreement invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid,
illegal or unenforceable because its scope, either geographical or temporal, is
considered excessive, such covenant will be modified so that the scope of the
covenant

 

11

 

is reduced only to the minimum extent necessary to render the modified
covenant valid, legal and enforceable.

 

THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE.

 

Section 13. Notices.

 

(a)           All
communications under this Agreement shall be in writing and shall be delivered
by hand or mailed by overnight courier or by registered or certified mail,
postage prepaid:

 

(i)            if
to the Executive, to the last known address of the Executive as contained on
the books of the Company, or

 

(ii)           if
to the Company, to Information Holdings, Inc., 2777 Summer Street, Stamford,
CT, 06905, marked for the attention of the President, or at such other address
as it may have furnished in writing to the Executive.

 

(b)           Any
notice so addressed shall be deemed to be given:  if delivered by hand, on the date of such delivery; if mailed by
courier, on the first business day following the date of such mailing; and if
mailed by registered or certified mail, on the third business day after the
date of such mailing.

 

Section 14. Section Headings.  The headings of the sections and subsections
of this Agreement are inserted for convenience only and shall not be deemed to
constitute a part thereof, affect the meaning or interpretation of this
Agreement or of any term or provision hereof.

 

Section 15. Entire Agreement.  This Agreement constitutes the entire
understanding and agreement of the parties hereto regarding the employment of
the Executive.  This Agreement
supersedes all prior negotiations, discussions, correspondence, communications,
understandings and agreements between the parties relating to the subject
matter of this Agreement.

 

Section 16. Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

 

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IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first above written.

 

	
   

  	
  MicroPatent LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Vincent
  Chippari

  	
   

  
	
   

  	
   

  	
  Vincent Chippari

  
	
   

  	
   

  	
  Executive V.P. & CFO

  
	
   

  	
   

  	
  Information Ventures LLC

  
	
   

  	
   

  	
  Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Daniel
  Videtto

  	
   

  
	
   

  	
   

  	
  Daniel Videtto

  

 

13Exhibit 10.1

HRPT PROPERTIES TRUST

 

FORM OF RESTRICTED SHARE AGREEMENT

 

 

This Restricted Share Agreement (this “Agreement”) is
made as of July 1, 2003 between ______________________ (the “Employee”) and
HRPT Properties Trust  (the “Company”).

In consideration of the mutual promises and covenants
contained in this Agreement, and for other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.             Grant
of Shares.  The Company hereby
grants to the Employee, effective as of the date of this Agreement, __________
shares of its common shares.  The shares
so granted are hereinafter referred to as the “Shares,” which term shall also
include any shares of the Company issued to the Employee by virtue of his or
her ownership of the Shares, by share dividend, share split, recapitalization
or otherwise.

2.             Vesting;
Repurchase of Shares.

(a)           The
Shares shall vest one-third as of the date hereof, a further one-third on the
July 1 of the year first following the date of this Agreement, and the final
one-third on the July 1 of the second year following the date of this
Agreement.  Any Shares not vested as of
any date are herein referred to as “Unvested Shares.”

(b)           In
the event the Employee ceases to render significant services, whether as an
employee or otherwise, to the Company, an affiliate of the Company, or to the
advisor to the Company, the Company shall have the right and option to purchase
from the Employee, for an amount equal to $.01 per share (as adjusted for any
share split or combination, share dividend, recapitalization or similar event)
all or any portion of the Unvested Shares as of the date the Employee ceases to
render such services.  The Company may
exercise such purchase option by delivering or mailing to the Employee (or his
estate), at any time after the Employee has ceased to render such services, a
written notice of exercise of such option. 
Such notice shall specify the number of Unvested Shares to be
purchased.  The price to be paid for the
Unvested Shares to be repurchased may be payable, at the option of the Company,
by wire transfer of immediately available funds or in cash (by check) or any
other reasonable method.

3.             Legends. 
Each certificate shall prominently bear a legend in substantially the
following terms:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE WERE
ISSUED PURSUANT TO AN INCENTIVE SHARE AWARD PLAN MAINTAINED BY THE ISSUER.  THESE SHARES MAY BE SUBJECT TO TRANSFER
AND/OR VESTING RESTRICTIONS, AND UNVESTED SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO REPURCHASE RIGHTS, CONTAINED IN THE 

 

PLAN, THE RELATED SHARE GRANT OR AN AGREEMENT BETWEEN
THE ISSUER AND THE INITIAL HOLDER OF THESE SHARES.  A COPY OF APPLICABLE RESTRICTIONS AND SUCH REPURCHASE RIGHTS WILL
BE FURNISHED TO THE HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON WRITTEN
REQUEST TO THE SECRETARY OF THE ISSUER AT THE PRINCIPAL EXECUTIVE OFFICE OF THE
ISSUER.

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OR AN OPINION OF
COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.”

4.             Tax
Withholding  To the extent required
by law, the Company shall withhold or cause to be withheld income and other
taxes incurred by the Employee by reason of a grant of Shares, and the Employee
agrees that he or she shall upon request of the Company pay to the Company an
amount sufficient to satisfy its tax withholding obligations from time to time
(including as Shares become vested) as the Company may request.

5.             Termination.  This Agreement shall continue in full force
and effect until the earliest to occur of the following, at which time except
as otherwise specified below this Agreement shall terminate:  (a) the date on which all repurchase rights
referred to in Section 2 hereof have terminated; or (b) except to the extent
specified in such notice, upon notice of termination by the Company to the
Employee pursuant to action taken by the Company’s Board of Trustees.

6.             Miscellaneous.

(a)           Amendments.  Neither this Agreement nor any provision
hereof may be changed or modified except by an agreement in writing executed by
the Employee and the Company.

(b)           Binding
Effect of the Agreement.  This
Agreement shall inure to the benefit of, and be binding upon , the Company, the
Employee and their respective estates, heirs, executors, transferees,
successors, assigns and legal representatives.

(c)           Provisions
Separable.  In the event that any of
the terms of this Agreement shall be or become or is declared to be illegal or
unenforceable by any court or other authority of competent jurisdiction, such
terms shall be null and void and shall be deemed deleted from this Agreement,
and all the remaining terms of this Agreement shall remain in full force and
effect.

(d)           Notices.  Any notice in connection with this Agreement
shall be deemed to have been properly delivered if it is in writing and is
delivered by hand or by facsimile or sent by registered certified mail, postage
prepaid, to the party addressed as follows, unless another address has been
substituted by notice so given:

2

 

	
  To
  the Employee:

  	
  To
  his address as set forth on the signature page hereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  To the Company:

  	
  HRPT Properties Trust

  	
   

  	
   

  
	
   

  	
  400
  Centre Street

  	
   

  	
   

  
	
   

  	
  Newton,
  MA 02458

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Secretary

  	
   

  	
   

  
						

 

(e)           Construction.  The headings and subheadings of this
Agreement have been inserted for convenience only, and shall not affect the
construction of the provisions hereof. 
All references to sections of this Agreement shall be deemed to refer as
well to all subsections which form a part of such section.

 

(f)            Employment
Agreement.  This Agreement shall not
be construed as an agreement by the Company, any affiliate or advisor of the
Company to employ the Employee, nor is the Company, any affiliate or advisor of
the Company obligated to continue employing the Employee by reason of this
Agreement or the grant of shares to the Employee hereunder.

(g)           Applicable
Law.  This Agreement shall be
construed and enforced in accordance with the laws of The Commonwealth of
Massachusetts.

                IN WITNESS WHEREOF, the parties hereto have executed
this Agreement, or caused this Agreement to be executed under seal, as of the
date first above written.

 

	
  HRPT PROPERTIES TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
  By:_____________________________

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EMPLOYEE:

  
	
   

  
	
  ________________________________

  
	
  Name
  (print):

  
	
   

  
	
  Home
  Address:

  	
  ___________________

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ___________________

  
	
   

  	
   

  	
   

  	
   

  

 

3

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