Document:

Exhibit 10(L)

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is made and entered into as of May 6,
2005, by and between Lyris
Technologies, Inc., a Delaware corporation (together with its successors
and assigns permitted hereunder, the “Company”), and Luis Rivera (“Employee”).

 

RECITALS

 

WHEREAS, Employee
is currently employed by the Company, which develops software and services for
e-mail marketing, e-mail filtering and spam prevention (as the Company
currently conducts and does so during the term of this Agreement, the “Business”);

 

WHEREAS, the
Company is, concurrently with the execution hereof, entering into a stock
purchase agreement with the Commodore Resources, Inc. a Delaware
corporation (“Commodore”), and the other parties thereto (the “Stock
Purchase Agreement”); and

 

WHEREAS, Employee
and the Company desire to set forth herein the terms of employment for
Employee, which employment shall be effective as of the closing of the
transactions contemplated by the Stock Purchase Agreement (the “Effective
Date”).

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements contained
herein, the sufficiency of which is hereby acknowledged, the parties agree as
follows:

 

AGREEMENTS:

 

1.                                      Employment
Period.  Subject to Section 3
or mutual written agreement between the Company and Employee, the Company
hereby agrees to employ Employee, and Employee hereby agrees to be employed by
the Company, in accordance with the terms and provisions of this Agreement, for
the period commencing as of the Effective Date and ending on the fifth
anniversary of the Effective Date (the “Initial Term”); provided
that, at the expiration of the Initial Term, and on each anniversary of such
expiration thereafter, the Employment Period shall automatically be extended in
one year increments (the “Extended Term”) unless at least three months
prior to the ensuing expiration date (but no more than 9 months prior to such
expiration date), the Company or Employee shall have given written notice to the
other party that it or he does not wish to extend this Agreement (a “Non-Renewal
Notice”).  The term “Employment
Period,” as utilized in this Agreement, shall refer to the Employment
Period as so automatically extended.

 

2.                                      Terms
of Employment.

 

(a)                                  Position
and Duties.

 

(i)                                     During the
Employment Period, Employee shall serve as President and Chief Executive
Officer of the Company and, in so doing, shall report to the Board of Directors
of the Company (the “Board”). 
Employee agrees to perform whatever duties the Board may assign to Employee from time to time,
consistent with Employee’s position with the Company.  Employee shall have supervision and control
over, and responsibility for, such 

 

 

management and operational
functions of the Company as are usual and customary for such position, and
shall have such other powers and duties as may from time to time be prescribed
by the Board.

 

(ii)                                  During the Employment
Period, and excluding any periods of vacation and sick leave to which Employee
is entitled, Employee agrees to devote all of his business time to the business
and affairs of the Company and, to the extent necessary to discharge the
responsibilities assigned to Employee hereunder, to use Employee’s reasonable
best efforts to perform faithfully, effectively and efficiently such
responsibilities.  During the Employment
Period it shall not be a violation of this Agreement for Employee to (A) serve
on corporate, civic or charitable boards or committees, (B) deliver
lectures or fulfill speaking engagements and (C) manage personal
investments, so long as such activities do not materially interfere with the
performance of Employee’s responsibilities as an employee of the Company in
accordance with this Agreement.

 

(b)                                 Compensation.

 

(i)                                     Base
Salary.  During the Employment
Period, Employee shall receive a minimum annual base salary per calendar year
of two hundred thousand dollars ($200,000) (“Annual Base Salary”), which
shall be paid in accordance with the customary payroll practices of the Company
and shall be prorated for the year ending December 31, 2005 and for any
other partial year of service.  The
Company may review and adjust upward Employee’s Annual Base Salary.  The term Annual Base Salary as utilized in
this Agreement shall refer to Annual Base Salary as so adjusted.

 

(ii)                                  Annual
Bonus.  Employee shall be eligible to
receive an annual bonus (“Annual Bonus”) at the end of each calendar
year during the Employment Period in accordance with the terms set forth on Schedule I
hereto.

 

(iii)                               Incentive,
Savings and Retirement Plans.  During
the Employment Period, Employee shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs of
the Company applicable generally to other employees of the Company (“Investment Plans”).

 

(iv)                              Welfare
Benefit Plans.  During the Employment
Period, Employee and/or Employee’s family or dependents, as the case may be,
shall be eligible for participation in the welfare benefit plans, practices,
policies and programs (“Welfare Plans”) provided by the
Company (including, without limitation, medical, prescription, dental, vision,
short-term disability, long-term disability, salary continuance, employee life,
group life, accidental death and travel accident insurance plans and programs)
to the extent applicable generally to other employees of the Company.  The Company will pay any required co-pay for
health insurance for Employee and his family under the Company’s health plan.

 

(v)                                 Expenses.  During the Employment Period, Employee shall
be entitled to receive prompt reimbursement for all reasonable travel,
entertainment and other business-related expenses incurred by Employee in
accordance with the policies, practices and procedures of the Company or the
Business, as applicable.

 

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(vi)                              Vacation
and Holidays.  During the Employment
Period, Employee shall be entitled to a minimum of four weeks vacation.

 

3.                                      Termination
of Employment.

 

(a)                                  Death
or Disability.  Employee’s employment
shall terminate automatically upon Employee’s death during the Employment
Period.  If the Disability of Employee
has occurred during the Employment Period (pursuant to the definition of
Disability set forth below), the Company may give to Employee written notice in
accordance with Section 11(b) of its intention to terminate
Employee’s employment.  In such event,
Employee’s employment with the Company shall terminate effective on the 30th
day after receipt of such notice by Employee (the “Disability Effective Date”), provided that, within 30 days after such receipt,
Employee shall not have returned to full-time performance of Employee’s
duties.  For purposes of this Agreement, “Disability”
shall mean Employee’s inability to perform his duties and obligations hereunder
for a period of 180 consecutive days due to mental or physical incapacity as
determined by a physician selected by the Company or its insurers and
acceptable to Employee or Employee’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

 

(b)                                 Termination
by the Company for Cause.  The
Company may terminate the Employee’s employment during the Employment Period
for Cause.  For purposes of this
Agreement, “Cause” shall mean: (i) the failure of Employee to materially
perform his obligations and duties hereunder to the satisfaction of the
Company, which failure is not remedied within 45 days after receipt of written
notice from the Company; (ii) commission by Employee of an act of fraud
upon, or willful gross misconduct toward, the Company or any of its affiliates;
(iii) a material breach by Employee of Section 6, Section 7
or Section 9, which in either case is not remedied within 15
business days after receipt of written notice from the Board or the Company; (iv) the
conviction of Employee of any felony (or a plea of nolo  contendere thereto) or any crime
involving moral turpitude; or (v) the failure of Employee to carry out, or
comply with, in any material respect any directive of the Board consistent with
the terms of this Agreement, which is not remedied within 30 business days
after receipt of written notice from the Board or the Company.  Any written notice from the Board or the
Company pursuant to this Section 3(b) shall specifically
identify the failure that it deems to constitute Cause.

 

(c)                                  Termination
by Company Without Cause.  The
Company may terminate Employee’s employment during the Employment Period
without Cause beginning on the date that is sixty (60) days after the Effective
Date.  For purposes of this Agreement, “without
Cause” shall mean a termination by the Company of Employee’s employment during
the Employment Period for any other reason other than a termination based upon
Cause, death or Disability.

 

(d)                                 Termination
by the Employee.  Employee’s employment
may be terminated during the Employment Period by Employee for Good Reason or
without Good Reason; provided, however,
that Employee agrees not to terminate his employment for Good Reason unless (i) Employee
has given the Company at least 30 days’ prior written notice of his intent to
terminate his employment for Good Reason, which notice shall specify the facts
and circumstances constituting Good Reason, and (ii) such facts and
circumstances constituting Good Reason have not been remedied within such 30
day period.  For purposes of this
Agreement, 

 

3

 

“Good Reason” shall mean any material breach by the Company of any
provision of this Agreement and shall also include Company (or its successors
and assigns) substantially altering the position, geographic location, or
responsibilities of Employee during the Employment Period.

 

(e)                                  Date
of Termination.  “Date of Termination”
means (i) if Employee’s employment is terminated for any reason other than
Employee’s death, the termination date set forth in the written notice to that
effect given by Employee to the Company or by the Company to Employee, as the
case may be (taking into account any notice or cure period required hereunder),
and (ii) if Employee’s employment is terminated by reason of death or
Disability, the date of death of Employee or the Disability Effective Date, as
the case may be.

 

4.                                      Obligations
of the Company Upon Termination.

 

(a)                                  Termination
Because of Death or Disability.  If
Employee’s employment is terminated by reason of Employee’s death or Disability
during the Employment Period, the Company shall pay to Employee or his legal
representatives within 20 days after the Date of Termination (except as
otherwise noted with respect to paragraphs (v) and (vi) below) (and
the Company shall have no further obligations hereunder with respect to
Employee):

 

(i)                                     Employee’s Annual
Base Salary through the Date of Termination to the extent not theretofore paid;

 

(ii)                                  Any Annual Bonus
awarded to Employee prior to the Date of Termination but not yet paid;

 

(iii)                               Any compensation
previously deferred by Employee (together with any accrued interest and
earnings thereon);

 

(iv)                              Any unreimbursed business
expenses;

 

(v)                                 Any amount arising
from Employee’s participation in, or benefits under, any Investment Plans (“Accrued
Investments”), which amounts shall be payable in accordance with the terms
and conditions of such Investment Plans; and

 

(vi)                              Any amounts to which
Employee is entitled from Employee’s participation in, or benefits under, any
Welfare Plan (“Accrued Welfare Benefits”), which amounts shall be
payable in accordance with the terms and conditions of such Welfare Plans, and
any amounts owed as a result of accrued vacation, which amounts shall be
payable in accordance with the policies of the Company.

 

(b)                                 Termination
for Cause; Other than for Good Reason. 
If Employee’s employment shall be terminated by the Company for Cause or
by Employee without Good Reason, the Company shall pay to Employee within 20
days after the Date of Termination (except as otherwise noted with respect to
paragraphs (v) and (vi) below) (and the Company shall have no further
obligations hereunder with respect to Employee):

 

(i)                                     Employee’s Annual
Base Salary through the Date of Termination to the extent not theretofore paid;

 

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(ii)                                  Any Annual Bonus
awarded to Employee prior to the Date of Termination but not yet paid;

 

(iii)                               Any compensation
previously deferred by Employee (together with any accrued interest and
earnings thereon);

 

(iv)                              Any unreimbursed business
expenses;

 

(v)                                 Any Accrued
Investments, which amounts shall be payable in accordance with the terms and
conditions of such Investment Plans; and

 

(vi)                              Any Accrued Welfare
Benefits, which amounts shall be payable in accordance with the terms and
conditions of such Welfare Plans, and any amounts owed as a result of accrued
vacation, which amounts shall be payable in accordance with the policies of the
Company.

 

(c)                                  Termination
for Good Reason; Without Cause.  If
the Company shall terminate Employee’s employment without Cause or Employee
shall terminate his employment for Good Reason, the Company shall pay to
Employee within 20 days of the Date of Termination (except as otherwise noted with
respect to paragraphs (v) and (vi) below) (and the Company shall have
no further obligations hereunder with respect to Employee):

 

(i)                                     Employee’s Annual
Base Salary through the Date of Termination to the extent not theretofore paid;

 

(ii)                                  Any Annual Bonus
awarded to Employee prior to the Date of Termination but not yet paid;

 

(iii)                               Any compensation
previously deferred by Employee (together with any accrued interest and
earnings thereon);

 

(iv)                              Any unreimbursed business
expenses;

 

(v)                                 Any Accrued Investments,
which amounts shall be payable in accordance with the terms and conditions of
such Investment Plans;

 

(vi)                              Any Accrued Welfare
Benefits, which amounts shall be payable in accordance with the terms and
conditions of such Welfare Plans, and any amounts owed as a result of accrued
vacation, which amounts shall be payable in accordance with the policies of the
Company; and

 

(vii)                           An amount equal to 1.5 times
the Employee’s then current Annual Base Salary.

 

5.                                      Full
Settlement.  Neither Employee nor
the Company shall be liable to the other party for any damages in addition to
the amounts payable under Section 4 arising out of the
termination of Employee’s employment prior to the end of the Employment Period;
provided,

 

5

 

however, that the Company shall be entitled to
seek damages for any breach of Section 6, Section 7,
or Section 9
or for Employee’s criminal misconduct.

 

6.                                      Confidential
Information.

 

(a)                                  Employee acknowledges
that the Company and its affiliates have trade, business and financial secrets
and other confidential and proprietary information (collectively, the “Confidential Information”)
and that during the course of Employee’s employment with the Company he has
received, shall receive or shall contribute to the Confidential
Information.  Confidential Information
includes technical information, processes and compilations of information,
records, specifications and information concerning assets, and information regarding
methods of doing business.  As defined
herein, Confidential Information shall not include (i) information that is
publicly and generally known to other persons or entities; provided that, such information has not been made
publicly and generally known by Employee in violation of this Agreement or, to
the knowledge of Employee, by others in violation of comparable agreements, (ii) information
required to be disclosed by Employee pursuant to a subpoena or court order, or
pursuant to a requirement of a governmental agency or law of the United States
of America or a state thereof or any governmental or political subdivision
thereof; provided, however,
that Employee shall take all reasonable steps to prohibit disclosure pursuant
to clause (ii) above, and (iii) information already known to
Employee without obligation to keep it confidential, or independently developed
by Employee without use of Confidential Information of Company or received by
Employee in good faith from a third party lawfully in possession thereof
without obligation to keep such information confidential.

 

(b)                                 During and following
Employee’s employment by the Company, Employee agrees (i) to hold such
Confidential Information in confidence and (ii) not to release such
information to any person (other than Company employees and other persons to
whom the Company has authorized Employee to disclose such information and then
only to the extent that such Company employees and other persons authorized by
the Company have a need for such knowledge). 
Employee agrees to use reasonable efforts to give the Company notice of
any and all attempts to compel disclosure of any Confidential Information, in
such a manner so as to provide the Company with written notice at least five
days before disclosure or within one business day after Employee is informed
that such disclosure is being or shall be compelled, whichever is earlier.  Such written notice shall include a
description of the information to be disclosed, the court, government agency,
or other forum through which the disclosure is sought, and the date by which
the information is to be disclosed, and shall contain a copy of the subpoena,
order or other process used to compel disclosure.

 

(c)                                  Employee further
agrees not to use any Confidential Information for the benefit of any person or
entity other than the Company.

 

7.                                      Intellectual
Property Rights; Surrender of Materials Upon Termination.

 

(a)                                  In
consideration of the Company’s agreement to employ Employee and the receipt by
Employee of the Confidential Information, Employee hereby assigns to the
Company all his right, title and interest in all Intellectual Property (as
defined below) that Employee makes or conceives, whether as a sole inventor or author
or as a joint inventor or

 

6

 

author, whether made within or outside
working hours or upon the premises of the Company or elsewhere, as work for
hire or otherwise, at any time during his employment with the Company or its
affiliates (including prior to the Effective Date).  “Intellectual Property” means any
information of a technical and/or business nature such as ideas, discoveries,
inventions, trade secrets, know-how, and writings and other works of authorship
that relate directly in any manner to the actual or anticipated business or
research and development of the Company and its affiliates.  During and subsequent to Employee’s
employment, upon the request and at the expense of the Company or its nominee
and for no additional personal remuneration, Employee agrees to execute any
instrument that the Company considers necessary to secure or maintain for the
benefit of the Company adequate patent, copyright, trademark and other property
rights in the United States and all foreign countries with respect to any
Intellectual Property.  Employee also agrees
to assist the Company as required to draft said instruments and to obtain and
enforce such rights.  Employee agrees to
promptly disclose to the Company any Intellectual Property when conceived or
made by Employee, in whole or in part, and to make and maintain adequate and
current records thereof.

 

(b)                                 Employee
agrees that all Confidential Information and other files, documents, materials,
records, customer lists, business proposals, contracts, agreements and other
repositories containing information concerning the Company or the business of
the Company, in whatever form, tangible or intangible (including all copies
thereof), that Employee shall prepare, or use, or be provided with as a result
of his employment with the Company, shall be and remain the sole property of
the Company.  Upon termination of
Employee’s employment hereunder, Employee agrees that all Confidential
Information and other files, documents, materials, records, customer lists,
business proposals, contracts, agreements and other repositories containing
information concerning the Company or the business of the Company (including
all copies thereof) in Employee’s possession, custody or control, whether
prepared by Employee or others, shall remain with or be returned to the Company
promptly (within 24 hours) after the Date of Termination.  The materials required to be returned
pursuant to this Section 7
shall not include personal correspondence that does not relate to the Company
or the business of the Company.

 

8.                                      Successors.

 

(a)                                  This Agreement is
personal to Employee and without the prior written consent of the Company shall
not be assignable by Employee otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure
to the benefit of and be enforceable by Employee’s legal representatives.

 

(b)                                 This Agreement shall
inure to the benefit of and be binding upon the Company and its successors and
assigns.  Employee agrees that the
Company may assign this Agreement to any directly or indirectly owned
subsidiary or affiliate (affiliate shall have the same meaning as in the Stock
Purchase Agreement) of the Company, in which event “Company” as used in this Agreement
shall thereafter mean such subsidiary or affiliate (except where reference is
made to benefit plans that are maintained by the Company, in which event the
Company shall remain obligated with respect thereto under this Agreement), and
in connection with such assignment, such subsidiary shall expressly assume this
Agreement and the Company shall be released therefrom except to the extent
referenced above.

 

7

 

(c)                                  The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement, “Company”
shall mean the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

 

9.                                      Non-Competition;
Non-Solicitation.

 

(a)                                  During his employment
by the Company, including the Employment Period, Employee shall have access to
and become acquainted with Confidential Information of the Company as described
in Section 6.  Employee
acknowledges and agrees that his use of Confidential Information in the conduct
of business on behalf of a competitor of the Company would constitute unfair
competition with the Company and would adversely affect the business goodwill
of the Company.  Accordingly, as a
material inducement to the Company to enter into this Agreement; to protect the
Company’s Confidential Information that may be disclosed or entrusted to
Employee (the disclosure of which by Employee in violation of this Agreement
would adversely affect the business goodwill of the Company), the business goodwill
of the Company that may be developed in Employee and the business opportunities
that may be disclosed or entrusted to Employee by the Company; in consideration
for the compensation and other benefits payable hereunder to Employee, for the
benefits to Employee of having access to Confidential Information during the
Employment Period (the disclosure of which by Employee in violation of this
Agreement would adversely affect the business goodwill of the Company); and for
other good and valuable consideration, Employee hereby covenants and agrees
that, during the Term of Non-Competition, Employee shall not, directly or
indirectly, individually or as an officer, director, manager, employee,
shareholder, consultant, contractor, partner, member, joint venturer, agent,
equity owner or in any capacity whatsoever:

 

(i)                                     own, engage in,
manage, operate, join, control, be employed by, provide Competing Services to,
or participate in the ownership, management, operation or control of or
provision of Competing Services to, a Competing Business operating in the
Geographic Area;

 

(ii)                                  recruit, hire, assist
in hiring, attempt to hire, or contact or solicit with respect to hiring any
person who, at any time during the 12 month period ending on the Date of
Termination, was an employee of the Company or its affiliates;

 

(iii)                               induce or attempt to
induce any employee of the Company or its affiliates to terminate, or in any
way interfere with, the relationship between such parties and any employee
thereof; or

 

(iv)                              induce or attempt to
induce any customer, client, supplier, service provider, or other business
relation of the Company or its affiliates in the Geographic Area to cease doing
business with such parties, or in any way interfere with the relationship
between such parties and any such person.

 

8

 

Notwithstanding the foregoing,
the Company agrees that Employee may own less than five percent of the
outstanding voting securities of any publicly traded company that is a Competing
Business so long as Employee does not otherwise participate in such competing
business in any way prohibited by this Section 9.

 

(b)                                 Employee acknowledges
that the geographic boundaries, scope of prohibited activities, and time
duration of the preceding paragraphs in this Section 9 (including
the defined terms for “Competing Business,” “Competing Services,”
“Geographic Area,” and “Term of Non-Competition” set forth in Section 9(c))
are reasonable in nature and are no broader than are necessary to maintain the
goodwill of the Company and the confidentiality of its Confidential Information
and to protect the goodwill and other legitimate business interests of the
Company, and also that the enforcement of such covenants would not cause
Employee any undue hardship or unreasonably interfere with Employee’s ability
to earn a livelihood.  If Employee
violates the covenants and restrictions in this Section 9 and the
Company brings legal action for injunctive or other equitable relief, Employee
agrees that the Company shall not be deprived of the benefit of the full period
of the restrictive covenant, as a result of the time involved in obtaining such
relief.  Accordingly, Employee agrees
that the provisions in this Section 9 shall have a duration
determined pursuant to Section 9(a), computed from the date the
legal or equitable relief is granted.

 

(c)                                  As used in this
Agreement:

 

(i)                                     “Competing
Business” means any service or product of any person or organization other
than the Company or its affiliates in existence or then under development, that
competes or could potentially compete, directly or indirectly, with any service
or product of the Company or its affiliates.

 

(ii)                                  “Competing
Services” means services that, if provided to a business other than a
Competing Business, would constitute the conduct of a Competing Business.

 

(iii)                               “Geographic Area”
means the United States.

 

(iv)                              “Term of
Non-Competition” means the period of time beginning on the date hereof and
continuing until (A) if this Agreement is terminated during the Employment
Period by either the Company for Cause or Employee without Good Reason, two
years after the Date of Termination, (B) if this Agreement is terminated
during the Employment Period by either the Company without Cause or Employee
for Good Reason, one year after the Date of Termination, or (C) if the
Employment Period expires by reason of a Non-Renewal Notice, one year after the last day of the Employment
Period.

 

(d)                                 If any court or
arbitrator determines that any portion of this Section 9 is invalid
or unenforceable, the remainder of this Section 9 shall not thereby
be affected and shall be given full effect without regard to the invalid or
unenforceable provisions.  If any court
or arbitrator construes any of the provisions of this Section 9 to
be invalid or unenforceable because of the duration or scope of such provision,
such court or arbitrator shall be required to reduce the 

 

9

 

duration or scope of such provision, to the minimum extent necessary so
as to be enforceable, and to enforce such provision as so reduced.

 

10.                               Non-Disparagement.  Employee agrees to refrain from engaging in
any conduct, or making any comments or statements, during the Employment Period
and thereafter, that have the purpose or effect of harming the reputation or
goodwill of the Company or its affiliates.

 

11.                               Miscellaneous.

 

(a)                                  Construction.  This Agreement shall be governed by and
construed in accordance with the laws of the State of California without
reference to principles of conflict of laws. 
The captions of this Agreement are not part of the provisions hereof and
shall have no force or effect.  Whenever
the terms “hereof”, “hereby”, “herein”, or words of similar import are used in
this Agreement they shall be construed as referring to this Agreement in its
entirety rather than to a particular section or provision, unless the
context specifically indicates to the contrary. 
Any reference to a particular “Section” or “paragraph” shall be
construed as referring to the indicated section or paragraph of this
Agreement unless the context indicates to the contrary.  The use of the term “including” herein shall
be construed as meaning “including without limitation.”  This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)                                 Notices.  All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

	
  If to
  Employee:

  	
   

  	
  44 Mirabel Avenue

  
	
   

  	
   

  	
  Mill Valley, CA 94941

  
	
   

  	
   

  	
   

  
	
  If to the
  Company:

  	
   

  	
  Lyris Technologies, Inc.

  
	
   

  	
   

  	
  20709 Allston Way, Suite 200

  
	
   

  	
   

  	
  Berkeley, CA 94704

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Vinson & Elkins L.L.P.

  
	
   

  	
   

  	
  3700 Trammell Crow Center

  
	
   

  	
   

  	
  2001 Ross Avenue

  
	
   

  	
   

  	
  Dallas, Texas 75201

  
	
   

  	
   

  	
  Attention: Michael D. Wortley

  

 

or to such other address as either party
shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

 

(c)                                  Severability.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under present or future laws effective
during the term of this Agreement, such provision shall be fully severable;
this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a portion of 

 

10

 

this Agreement; and the remaining provisions of this Agreement shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance from this
Agreement.  Furthermore, in lieu of such
illegal, invalid or unenforceable provision there shall be added automatically
as part of this Agreement a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable.

 

(d)                                 Withholding.  The Company may withhold from any amounts
payable under this Agreement such Federal, state or local taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

 

(e)                                  No
Waiver.  Employee’s or the Company’s
failure to insist upon strict compliance with any provision of this Agreement
or the failure to assert any right Employee or the Company may have hereunder,
including, without limitation, the right of Employee to terminate employment
for Good Reason, shall not be deemed to be a waiver of such provision or right
or any other provision or right of this Agreement.

 

(f)                                    Equitable
and Other Relief.  Employee
acknowledges that money damages would be both incalculable and an insufficient
remedy for a breach of Section 6, Section 7,  Section 9 or Section 10
by Employee and that any such breach would cause the Company irreparable
harm.  Accordingly, the Company, in
addition to any other remedies at law or in equity it may have, shall be
entitled, without the requirement of posting of bond or other security, to
equitable relief, including injunctive relief and specific performance, in
connection with a breach of Section 6, Section 7,  Section 9 or Section 10
by Employee.

 

(g)                                 Entire
Agreement.  The provisions of this
Agreement constitute the complete understanding and agreement between the
parties with respect to the subject matter hereof, and supersede all prior and
contemporaneous oral and written agreements, representations and understandings
of the parties, which are hereby terminated. 
Employee and the Company acknowledge and represent that there are no
other promises, terms, conditions or representations (oral or written)
regarding any matter relevant hereto.

 

(h)                                 Counterparts.  This Agreement may be executed in two or more
counterparts.

 

(i)                                     Arbitration.

 

(i)                                     In the event any
dispute or controversy arises under this Agreement and is not resolved by
mutual written agreement between Employee and the Company within 30 days after
notice of the dispute is first given, then Employee and the Company will
mutually select an arbitrator and submit such dispute or controversy to
arbitration by such arbitrator; provided, however, if the Company
and Employee have not mutually selected an arbitrator within 90 days after
notice of the dispute is first given, or if Employee and the Company decide at
any earlier date not to mutually select an arbitrator, then, upon the written
request of Employee or the Company, such dispute or controversy shall be
submitted to arbitration by an arbitrator to be selected by the American
Arbitration Association (“AAA”). 
The arbitration will be conducted in accordance with the Rules for
Resolution of Employment 

 

11

 

Disputes of the AAA.  Judgment may be entered thereon and the results
of the arbitration will be binding and conclusive on the parties hereto.  Any arbitrator’s award or finding or any
judgment or verdict thereon will be final and unappealable.  All parties agree that venue for arbitration
will be in San Francisco County, California, or such other place as may be
agreed upon in writing at the time by the parties and that any arbitration
commenced in any other venue will be transferred to San Francisco County,
California, upon the written request of any party to this Agreement.  All arbitrations will have one individual
acting as arbitrator.  Any arbitrator
selected will not be affiliated, associated or related to either Employee of
the Company in any matter whatsoever. 
The decision of the arbitrator will be binding on all parties.  The prevailing party in the arbitration (as
determined by the arbitrator) shall be reimbursed, by the other party, its
reasonable attorneys fees, costs and other expenses pertaining to any such
arbitration and enforcement.

 

(ii)                                  THE ARBITRATOR SHALL
HAVE NO AUTHORITY TO AWARD PUNITIVE DAMAGES UNDER ANY CIRCUMSTANCES (WHETHER IT
BE EXEMPLARY DAMAGES, TREBLE DAMAGES, OR ANY OTHER PENALTY OR PUNITIVE TYPE OF
DAMAGES).  REGARDLESS OF WHETHER SUCH
DAMAGES MAY BE AVAILABLE UNDER CALIFORNIA LAW, EMPLOYEE AND THE COMPANY
EACH HEREBY WAIVE THE RIGHT, IF ANY, TO RECOVER PUNITIVE DAMAGES IN CONNECTION
WITH ANY CLAIMS.  EMPLOYEE AND THE
COMPANY ACKNOWLEDGE THAT BY SIGNING THIS AGREEMENT EMPLOYEE AND THE COMPANY ARE
WAIVING ANY RIGHT THAT EMPLOYEE OR THE COMPANY MAY HAVE TO A JURY TRIAL.

 

(j)            Survival.  Sections 4, 5, 6, 7,
8, 9, and 10 of this Agreement shall survive the
termination of Employee’s employment.

 

(k)                                  Amendments.  This Agreement may not be amended or modified
at any time except by a written instrument executed by the Company and
Employee.

 

(l)                                     Effectiveness.  If the Effective Date has not occurred by May 25,
2005, this Agreement shall be null and void and of no force or effect.

 

(m)                               Employee
Acknowledgment.  Employee
acknowledges that he has read and understands this Agreement, is fully aware of
its legal effect, has not acted in reliance upon any representations or
promises made by the Company other than those contained in writing herein, and
has entered into this Agreement freely based on his own judgment.

 

[SIGNATURE PAGE FOLLOWS]

 

12

 

IN WITNESS
WHEREOF, Employee has hereunto set Employee’s hand and the Company has caused
this Agreement to be executed in its name on its behalf, all as of the day and
year first above written.

 

	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Luis Rivera

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  LYRIS TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David R. Burt

  	
   

  
	
   

  	
  Name:

  	
  David R. Burt

  
	
   

  	
  Title:

  	
   

  
					

 

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

 

13

 

SCHEDULE I

 

Annual Bonus

 

1.               Profit
Sharing Bonus

 

Company shall pay to Employee a
bonus based on the profitability of the Company as set forth below:

 

•                  Bonus will be
paid quarterly within 30 days after the end of each fiscal quarter for the
Company.

 

•                  Bonus will be
based on Company accomplishing its “Profit Target” for such quarter.

 

Profit Target
for the quarter ended June 30, 2005 shall be $1,250,000.00.

 

Profit Target
for the quarter ended September 30, 2005 shall be $1,500,000.00.

 

Profit Target
for the quarter ended December 31, 2005 shall be $1,500,000.00.

 

Profit Target
for the quarter ended March 31, 2006 shall be $1,750,000.00.

 

If Company accomplishes its
Profit Target for a quarter, Employee shall be entitled to a bonus equal to
$62,500 for the June 30, 2005 quarter, bonus equal to $62,500 for the September 30,
2005 quarter, bonus equal to $62,500 for the December 31, 2005 quarter and
bonus equal to $62,500 for the March 31, 2006 quarter.

 

If the Company does not
accomplish its Profit Target in a quarter but exceeds its Profit Target in a
subsequent quarter, the Profit Sharing Bonus can be increased pro rata by an
amount sufficient to make up for a shortfall in a prior quarter.  For the four quarters ended March 31,
2006, if the Profit Target equals $6,000,000 the full Profit Sharing Bonus of
$250,000 will be paid.Exhibit 10.m

 

LYRIS TECHNOLOGIES EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”) is
entered into between Lyris Technologies, Inc. (“Employer”), and Joseph
Lambert (“Employee”).

 

In consideration of the employment or
continued employment of Employee by Employer, Employer and Employee agree as
follows:

 

1. 
Employment, Complete Agreement, and Modification

 

Employer
agrees to employ or continue to employ Employee and Employee agrees to be
employed by Employer on the terms and conditions set forth herein.  This Agreement supersedes all previous
correspondence, promises, representations, and agreements, if any, either
written or oral.  No provision of this
Agreement may be modified except in writing signed by both the Employer’s CEO
and the Employee.

 

Employee warrants to Employer that Employee
is not bound by the terms of any contract with any prior employer or other
party that would interfere with Employee’s ability to fully comply with the
terms of this Agreement.

 

2.  Duties and Compensation

 

Employee shall perform any and all duties now
and hereafter assigned to Employee by Employer, or performed by Employee
whether or not assigned to Employee, for a salary as may from time to time be
fixed by Employer.   Employee agrees to abide by Employer’s rules,
regulations, and practices, including but not limited to those concerning work
schedules, vacation and sick leave, as they may from time to time be adopted or
modified, herein and in the Lyris Employee Handbook (“Handbook”).

 

3.  Salary or Wage May Be
Changed

 

Employee
understands and agrees that Employee’s salary or hourly wage may be adjusted
from time to time by Employer at Employer’s sole discretion without affecting
this Agreement.

 

4.  Termination of Employment

 

Employee
understands and agrees that all employment relationships with Employer are “at
will,” and as such Employee or Employer may end the employment relationship for
any reason at any time, with or without cause or advance notice.

 

5. 
Salary or Wage Is Full Compensation

 

Employee understands that Employee’s salary
or hourly wage will constitute the full and exclusive monetary consideration
and compensation for all services performed by Employee and for the performance
of all of Employee’s promises and obligations hereunder.

 

6.  Other Compensation

 

Employee understands and agrees that any
additional compensation to Employee (whether a bonus or other form of
additional compensation) shall rest in the sole discretion of Employer and that
Employee shall not earn or accrue any right to additional compensation by
reason of Employee’s employment.

 

 

7.  Employee Benefits Plan

 

Employer may adopt or continue in force
benefit plans for the benefit of its employees or certain of its
employees.  Such benefit plans may
include, as examples only, group life insurance and medical insurance.  Employer may terminate any or all such plans
at any time and may choose not to adopt any additional plans.  Employee’s rights under any benefits plans
now in force or later adopted by Employer shall be governed solely by their
terms.

 

8.  Duty To Devote Full Time
and To Avoid Conflict of Interest

 

Employee agrees that during the period of
employment, Employee shall devote full-time efforts to his or her duties as an
employee of Employer.  During the period
of employment, Employee further agrees not to (i) solely or jointly with
others undertake or join any planning for or organization of any business
activity competitive with the Employer’s business and (ii) directly or
indirectly, engage or participate in any other activities that cause harm to
the Employer’s research and development, sales, marketing, public reputation
and representation, or business in general.

 

9.  Information Disclosed
Remains Property of Employer

 

All ideas, concepts, information, and written
material disclosed to Employee by Employer, or acquired from a customer or
prospective customer of Employer, are and shall remain the sole and exclusive
property and proprietary information of Employer or such customers, and are
disclosed in confidence by Employer or permitted to be acquired from such
customers in reliance on Employee’s agreement to maintain them in confidence
and not to use or disclose them to any other person except in furtherance of
Employer’s business.

 

10.  Inventions and Creations
Belong to Employer

 

Any and all inventions, discoveries,
improvements, or creations (collectively “Creations”) which Employee has
conceived or made or may conceive or make either individually or with others,
during the period of employment in any way, directly or indirectly, connected
with Employer’s business, and any patents, trademarks and trade secret rights
issued or created in connection with such Creations, shall be the sole and
exclusive property of Employer.  Employee
agrees that all copyrightable works created by Employee or under Employer’s
direction in connection with Employer’s business are “works made for hire” and
shall be the sole and complete property of Employer and that any and all
copyrights to such works shall belong to Employer.  To the extent such works are not deemed to be
“works made for hire,” Employee hereby assigns all proprietary rights,
including copyright, in these works to Employer without further compensation
including, without limit, any such work performed during work hours on Employer’s
premises or using Employer’s equipment, facilities, intellectual property, or
money.

 

Employee further agrees to (i) disclose
promptly to Employer all such Creations which Employee has made or may make
solely, jointly, or commonly with others, during the period of employment in
any way, directly or indirectly, connected with Employer’s business, (ii) assign
all such Creations to Employer, and (iii) execute and sign any and all
applications, assignments, or other instruments which Employer may deem necessary
in order to enable it, at its expense, to apply for, prosecute, and obtain
copyrights, patents or other proprietary rights in the United States and
foreign countries or in order to transfer to Employer all right, 

 

 

title, and interest in said Creations.
This obligation applies to all Creations conceived during the term of
employment with Employer and to Creations based on information developed during
the term of employment, which are directly or indirectly connected with
Employer’s business.

 

Employee will maintain and make available to
Employer at any time during the term of employment with Employer all written
records or drawings of any Creations made by Employee either alone or with
others during the course of employment with Employer.

 

Employer
agrees, pursuant to California Labor Code Section 2870, that any Creations
which Employee has conceived or made or may conceive or make either
individually or with others, during the period of employment in any way, not
connected with Employer’s business, and any patents, trademarks and trade
secret rights issued or created in connection with such Creations, shall be the
sole and exclusive property of Employee.

 

11.  Confidentiality

 

a.  Definition.  During
the term of employment with Employer, Employee will have access to and become
acquainted with various trade secrets and other proprietary and confidential
information which are owned by Employer and which are used in the operation of
Employer’s business.  “Trade secrets and
other proprietary and confidential information” consist of, for example, and
not intending to be inclusive, (i) software (source and object code),
algorithms, computer processing systems, techniques, methodologies, formulae,
processes, compilations of information, drawings, proposals, job notes,
reports, records, and specifications, and (ii) information concerning any
matters relating to the business of Employer, any of its customers, customer
contacts, licenses, the prices it obtains or has obtained for the licensing of
its software products and services, or any other information concerning the
business of the Employer and Employer’s good will.

 

b.  No Disclosure.  Employee
shall not disclose or use in any manner, directly or indirectly, any such trade
secrets and other proprietary and confidential information either during the
term of this Agreement or at any time thereafter, except as required in the
course of employment with Employer.

 

12.  Return of Material

 

Employee agrees that, upon request of
Employer or upon termination of employment, Employee shall turn over to
Employer all documents, disks or other computer media, or other material in his
or her possession or under his or her control that (i) may contain or be
derived from ideas, concepts, Creations, or trade secrets and other proprietary
and confidential information as set forth in paragraphs 9, 10 and 11 above, or (ii) connected
with or derived from Employee’s services to Employer.

 

13.  Covenant Not To Compete

 

a.  Restriction. 
Employee agrees that he or she will not, during the course of
employment and, to the extent permissible pursuant to applicable law, for a
period of twelve (12) months commencing upon the expiration of employment,
voluntarily or involuntarily, directly or indirectly, develop, or assist others
to develop, software product(s) with functionality similar to the functionality
of any software product(s) developed or under development by Employer.  The term “develop software product(s)” shall
mean design, create general or

 

 

detailed functional or
technical specifications for, create or write code for, enhance, debug or
otherwise modify code for, or otherwise participate in the creation or
modification of software product(s).

 

b.  Employee’s Acknowledgments and
Agreements.  Employee
acknowledges and agrees that the software developed by Employer is or is
intended to be marketed and licensed to customers worldwide .  Employee further acknowledges and agrees to
the reasonableness of this covenant not to compete and the duration of time
that are a part of this covenant. 
Employee also acknowledges and agrees that this covenant will not
preclude Employee from becoming gainfully employed following termination of
employment with Employer.

 

14.  Inducing Employees To
Leave Employer; Employment of Employees

 

Any attempt on the part of Employee to induce
others to leave Employer’s employ, or any effort by Employee to interfere with
Employer’s relationship with its other employees would be harmful and damaging
to Employer.  Employee agrees that during
the term of employment and for a period of twelve (12) months thereafter,
Employee will not in any way, directly or indirectly (i) induce or attempt
to induce any employee of Employer to quit employment with Employer;  (ii) otherwise interfere with or disrupt
Employer’s relationship with its employees; 
(iii) solicit, entice, or hire away any employee of Employer; or (iv) hire
or engage any employee of Employer or any former employee of Employer whose
employment with Employer ceased less than one (1) year before the date of
such hiring or engagement.

 

15.  Nonsolicitation of
Business

 

During Employee’s employment with Employer
and for a period of twelve (12) months from the date of termination of such
employment, Employee will not divert or attempt to divert from Employer any business
Employer had enjoyed or solicited from its customers during the twelve (12)
months prior to the termination of Employee’s employment.

 

16.  Remedies - Injunction

 

In the event of a breach or threatened breach
by Employee of any of the provisions of this Agreement, Employee agrees that
Employer — in addition to and not in limitation of any other rights, remedies,
or damages available to Employer at law or in equity — shall be entitled to a
permanent injunction in order to prevent or restrain any such breach by
Employee or by Employee’s partners, agents, representatives, servants,
employees, and/or any and all persons directly or indirectly acting for or with
Employee.

 

17.  Severability

 

In the event that any of the provisions of
this Agreement shall be held to be invalid or unenforceable in whole or in
part, those provisions to the extent enforceable and all other provisions shall
nevertheless continue to be valid and enforceable as though the invalid or
unenforceable parts had not been included in this Agreement.  In the event that any provision relating to
the time period or scope of restriction shall be declared by a court of
competent jurisdiction to exceed the maximum time period or scope such court
deems reasonable and enforceable, then the time period or scope of restriction
deemed reasonable and enforceable by the court shall become and shall
thereafter be the maximum time period.

 

 

18.  Governing Law

 

This Agreement shall be construed and
enforced according to the laws of the State of California. All legal actions
arising under this Agreement shall be instituted in, and both Employer and
Employee consent to jurisdiction in the courts of Alameda County, California.

 

19.  Agreement: Read,
Understood, and Accepted

 

Employee has carefully read and understood
this Agreement, and agrees to comply with all of its provisions.

 

AGREED:

 

 

EMPLOYER:

 

	
  /s/ Luis A. Rivera

  	
   

  
	
  Signature

  
	
   

  
	
  Luis A. Rivera

  	
   

  
	
  Name

  
	
   

  
	
  President

  	
   

  
	
  Title

  
	
   

  
	
  Lyris Technologies, Inc.

  
	
  2070 Allston Way, Suite 200

  
	
  Berkeley, CA 94704

  
	
   

  
	
  8/29/2005

  	
   

  
	
  Date

  
	
   

  
	
   

  
	
  EMPLOYEE:

  
	
   

  
	
  /s/ Joseph Lambert

  	
   

  
	
  Signature

  
	
   

  
	
  Joseph Lambert

  	
   

  
	
  Name

  
	
   

  
	
  Vice President, Controller

  	
   

  
	
  Title

  
	
   

  
	
  8/29/2005

  	
   

  
	
  Date

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