Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Agreement, effective
this 5th day of September, 2008 (the “Effective Date”), by and between
Phase Forward Incorporated, a Delaware corporation having offices at 880 Winter
Street, Waltham, Massachusetts 02451 (“Phase Forward”), and [Employee] residing at                                                                                     
(“Employee”).

 

WHEREAS,
Phase Forward has concurrently herewith consummated the acquisition (the “Transaction”)
of Clarix LLC (the “Acquired Company”) pursuant to the terms and
conditions of the Unit Purchase Agreement dated the date hereof by and among
the Acquired Company, the Selling Interest Holders named therein and Phase
Forward (the “UPA”);

 

WHEREAS,
Phase Forward and Employee desire that Employee be employed by Phase Forward
(either directly or through the Acquired Company) pursuant to the terms and
conditions of this Agreement; and

 

WHEREAS,
Employee’s position requires that he be trusted with extensive confidential
information and trade secrets of Phase Forward and that he develop a thorough
and comprehensive knowledge of all details of Phase Forward’s business,
including, but not limited to, information relating to research, development,
inventions, purchasing, accounting, marketing, distribution and licensing of
Phase Forward’s products and services;

 

NOW, THEREFORE,
in consideration of the promises and of the mutual covenants herein contained,
the parties hereto hereby agree as follows:

 

1.     Position and Responsibilities.  Phase
Forward hereby employs Employee on a full-time basis, to serve as                                       ,
reporting to                             .
Employee hereby accepts said employment. 
Employee acknowledges that his title, role and reporting relationships
may be changed by Phase Forward during the course of his employment in Phase
Forward’s discretion.  Employee agrees to
devote Employee’s full business time, best efforts and business judgment, skill
and knowledge to the advancement of Phase Forward’s interests and to the
discharge of Employee’s duties and responsibilities under this Agreement.

 

Employee
acknowledges the need to follow Phase Forward policies and procedures
applicable to the Acquired Company employees. 
Employee acknowledges the receipt and review of such policies.

 

2.     Employment Period.  The
employment period under this Agreement will commence on the Effective Date and
will be on an “at will” basis, which means that Phase Forward and Employee will
be free to terminate the relationship at any time and for any or no reason,
subject to the provision of the Executive Agreement (as hereinafter defined) or
any other agreement signed by both parties governing any such termination.

 

 

3.     Compensation and Benefits.

 

3.1               Salary. 
Starting on the Effective Date, Phase Forward will pay Employee at the
rate of $                
per year (“Base Salary”).  The
Base Salary will be payable in accordance with the customary payroll practices
of Phase Forward as may be established or modified from time to time. Phase
Forward will review, on an annual basis, Employee’s performance based upon
criteria determined by Phase Forward’s management and Phase Forward may
increase (but not decrease)  Employee’s
Base Salary in its sole discretion based on such review.

 

3.2               Incentive
Plans.  Starting in 2009, during Employee’s
employment, Employee will be eligible to participate in bonus or incentive
plans from time to time adopted by Phase Forward and in effect for employees of
Phase Forward in similar positions.  Employee’s
participation will be subject to (a) the terms of the applicable plan
documents, (b) generally applicable Phase Forward policies, and (c) the
discretion of management, the Board or any administrative or other committee
provided for in, or contemplated by, such plan. 
Subject to the foregoing terms and conditions, Employee will be eligible
in 2009 to earn a bonus of 35% of his Base Salary.

 

3.3               Restricted
Stock Units.  Upon execution of this Agreement by Phase
Forward, Phase Forward will issue to Employee restricted stock units under the
Restricted Stock Unit Award Agreement attached hereto as Exhibit A
(the “RSU Agreement”).

 

3.4               Benefits. 
During Employee’s employment, and subject to any contribution generally
required of employees of Phase Forward, Employee will be eligible to
participate in all employee health and benefits plans from time to time adopted
by Phase Forward and in effect for employees of Phase Forward in similar
positions.  Employee’s participation will
be subject to (a) the terms of the applicable plan documents, (b) generally
applicable Phase Forward policies, and (c) the discretion of the Board or
any administrative or other committee provided for in, or contemplated by, such
plan.

 

Phase
Forward’s current plans and policies will govern all other benefits, unless
Phase Forward notifies you that any of the Acquired Company’s policies or
benefits will govern any benefits.  Phase
Forward and/or the Board of Directors may alter, modify, add to, or delete its
employee benefits plans and policies at any time as Phase Forward and/or the
Board of Directors, each in its sole judgment, determines to be appropriate.

 

In
addition, Employee and Phase Forward will enter into the Executive Agreement
attached hereto as Exhibit B (the “Executive Agreement”).

 

3.5               Taxes;
Exclusivity.  Phase Forward will make deductions,
withholdings and tax reports with respect to payments under this Agreement to
the extent that it reasonably and in good faith believes that it is required to
make such deductions, withholdings and tax reports.  Payments under this Agreement will be in
amounts net of any such deductions or withholdings.  Nothing in this Agreement will be construed
to require Phase Forward to make any payments to compensate Employee for any
adverse tax effect associated with any payments or benefits or for any
deduction or withholding from any payment. 
Employee will not be entitled 

 

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to any payments other than those provided under this
Agreement or the Executive Agreement.

 

3.6               Vehicle.  From
and after the Effective Date, the Company agrees to make all lease payments
under that certain Motor Vehicle Lease Agreement, between Devon Hill Motors and
Clarix LLC, dated                 .

 

4.     Termination.  Employee or Phase Forward may
terminate Employee’s employment relationship at any time, with or without
notice, for any or no reason, subject to the provisions of Section 5.

 

5.     Effect of Termination.  The
provisions of the Executive Agreement will apply in the event of termination of
Employee’s employment.

 

6.     Noncompetition and Related Matters.

 

6.1               Employee
Agreement.  As a condition of employment with Phase
Forward and under this Agreement, whether in the position contemplated by this
Agreement or any other position held by Employee during the term of employment,
Employee will execute, prior to the execution of this Agreement by Phase
Forward, the agreement attached hereto as Exhibit C related to
confidentiality, intellectual property ownership and non-competition (the “Employee
Agreement”). The obligations of Employee under the Employee Agreement
expressly survive (a) any termination of Employee’s employment to the
extent provided in the Employee Agreement, regardless of the manner of such
termination, or termination of this Agreement and (b) any change in
Employee’s position, role, compensation or responsibilities.

 

Employee
hereby acknowledges that (a) as a holder of membership interests of the
Acquired Company he will derive financial benefit from the Transaction, (b) Employee’s
willingness to sign the agreement attached hereto as Exhibit C is
intended to induce Phase Forward to enter into the UPA and consummate the
transactions contemplated thereby, and (c) the agreements, covenants and
restrictions contained in Exhibit C are reasonable in light of
Phase Forward’s need to protect its business, including the business of the
Acquired Company.

 

6.2               Equitable
Relief.  Employee agrees that any breach of the
noncompetition provisions set forth in the Employee Agreement by Employee will
cause irreparable damage to Phase Forward and that in the event of such breach
Phase Forward will have, in addition to any and all remedies of law, the right
to an injunction, specific performance or other equitable relief to prevent
Employee’s violation of Employee’s obligations thereunder.

 

7.     Conflicting Agreements. 
Employee hereby warrants that the execution of this Agreement and the
performance of his obligations hereunder will not breach or be in conflict with
any other agreement to which or by which Employee is a party or is bound and
that Employee is not now subject to and will not enter into any agreement,
including, without limitation, any covenants against competition or similar
covenants that would affect the performance of his obligations hereunder.

 

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8.     Miscellaneous.

 

8.1               Assignment. 
Employee will not assign this Agreement (including any of the exhibits
hereto) or any interest herein (or therein). 
Phase Forward may assign this Agreement (including any of the exhibits
hereto), and it is specifically understood and agreed that no such assignment
by Phase Forward will be deemed to be a “termination” of Employee’s employment
with Phase Forward within the meaning of Section 4 hereof.  This Agreement will inure to the benefit of
Phase Forward’s successors and assigns and will be binding upon Phase Forward’s
successors and assigns and upon Employee and his executors, administrators and
heirs.

 

8.2               Severability.  If
any portion or provision of this Agreement will to any extent be declared
illegal or unenforceable by a court of competent jurisdiction, then the
application of such provision in such circumstances will be modified to permit
its enforcement to the maximum extent permitted by law, and both the
application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable and the remainder of this
Agreement will not be affected thereby, and each portion and provision of this
Agreement will be valid and enforceable to the fullest extent permitted by law.

 

8.3               Waiver;
Amendment.  No waiver of any provision hereof will be
effective unless made in writing and signed by the waiving party.  The failure of Phase Forward to require the
performance of any term or obligation of this Agreement, or the waiver by Phase
Forward of any breach of this Agreement, will not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.  This Agreement may be amended or
modified only by a written instrument signed by Employee and a person
authorized by the Board of Directors of Phase Forward.

 

8.4               Notices.  All
notices, requests and other communications provided for by this Agreement will
be in writing and will be effective when delivered in person or three (3) business
days after being deposited in the mail of the United States, postage prepaid,
registered or certified, and addressed (a) in the case of Employee, to the
address set forth underneath his signature to this Agreement or (b) in the
case of Phase Forward, to the attention of its General Counsel and/or to such
other address as either party may specify by notice to the other.

 

8.5               Entire
Agreement.  This Agreement and the agreements identified
as exhibits hereto constitute the entire agreement between Phase Forward and
Employee with respect to the terms and conditions of Employee’s employment with
Phase Forward or the Acquired Company and supersede all prior communications,
agreements and understandings, written or oral, between Employee and Phase
Forward or the Acquired Company with respect to the terms and conditions of
Employee’s employment with Phase Forward.

 

8.6               Counterparts.  This
Agreement may be executed in counterparts, each of which will be original and
all of which together will constitute one and the same instrument.

 

8.7               Governing
Law.  This Agreement, the employment relationship
contemplated herein and any claim arising from such relationship, whether or
not arising under this Agreement, will be governed by and construed in
accordance with the internal

 

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laws
of the Commonwealth of Massachusetts without giving effect to any choice or
conflict of laws provision or rule thereof.

 

8.8               Consent
to Jurisdiction.  Each of Phase Forward and Employee, by its or
his execution hereof, hereby irrevocably submits to the exclusive jurisdiction
of the state or federal courts of the Commonwealth of Massachusetts for the
purpose of any claim or action arising out of or based upon this Agreement,
Employee’s employment with Phase Forward and/or termination thereof, or
relating to the subject matter hereof, and agrees not to commence any such
claim or action other than in the above-named courts.

 

8.9               Survival.  The
provisions of Section 6, Section 8, the RSU Agreement, the Executive
Agreement and the Employee Agreement will survive the termination of this
Agreement, in each case to the extent not satisfied as of the last day of
Employee’s employment.

 

IN WITNESS WHEREOF, this Employment Agreement has been executed by Phase Forward, by its
duly authorized representative, and by Employee, as of the date first above
written.

 

 

	
   

  	
   

  	
  PHASE
  FORWARD INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMPLOYEEExhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This Agreement, effective
this 5th day of September, 2008 (the “Effective Date”), by and between
Phase Forward Incorporated, a Delaware corporation having offices at 880 Winter
Street, Waltham, Massachusetts 02451 (“Phase Forward”), and [Employee] residing at                                                                         
(“Employee”).

 

WHEREAS,
Phase Forward has concurrently herewith consummated the acquisition (the “Transaction”)
of Clarix LLC (the “Acquired Company”) pursuant to the terms and
conditions of the Unit Purchase Agreement dated the date hereof by and among
the Acquired Company, the Selling Interest Holders named therein and Phase
Forward (the “UPA”);

 

WHEREAS,
Phase Forward and Employee desire that Employee be employed by Phase Forward
(either directly or through the Acquired Company) pursuant to the terms and
conditions of this Agreement; and

 

WHEREAS,
Employee’s position requires that he be trusted with extensive confidential
information and trade secrets of Phase Forward and that he develop a thorough
and comprehensive knowledge of all details of Phase Forward’s business,
including, but not limited to, information relating to research, development,
inventions, purchasing, accounting, marketing, distribution and licensing of
Phase Forward’s products and services;

 

NOW, THEREFORE,
in consideration of the promises and of the mutual covenants herein contained,
the parties hereto hereby agree as follows:

 

1.     Position and Responsibilities. 
Phase Forward hereby employs Employee on a full-time basis, to serve as                                 ,
reporting to                                       .
Employee hereby accepts said employment. 
Employee acknowledges that his title, role and reporting relationships
may be changed by Phase Forward during the course of his employment in Phase
Forward’s discretion.  Employee agrees to
devote Employee’s full business time, best efforts and business judgment, skill
and knowledge to the advancement of Phase Forward’s interests and to the
discharge of Employee’s duties and responsibilities under this Agreement.

 

Employee
acknowledges the need to follow Phase Forward policies and procedures
applicable to the Acquired Company employees. 
Employee acknowledges the receipt and review of such policies.

 

2.     Employment Period.  The
employment period under this Agreement will commence on the Effective Date and
will continue for a period of three (3) years from and after the Effective
Date, unless otherwise terminated pursuant to the termination provisions set
forth herein.  At the expiration of such
three-year period, except for any provision of this Agreement which expressly
survives termination or expiration of this Agreement, Employee’s employment
relationship with Phase Forward will be on an “at will” basis, which means that
Phase Forward and Employee will be free to terminate the relationship at any
time and for any or no reason.  Under no
circumstances will this Agreement be deemed to govern Employee’s employment
relationship with Phase Forward beyond such three-year period.

 

 

3.     Compensation and Benefits.

 

3.1               Salary. 
Starting on the Effective Date, Phase Forward will pay Employee at the
rate of $                
per year (“Base Salary”).  The
Base Salary will be payable in accordance with the customary payroll practices
of Phase Forward as may be established or modified from time to time. Following
this period, Phase Forward will review, on an annual basis, Employee’s
performance based upon criteria determined by Phase Forward’s management and
Phase Forward may increase (but not decrease) Employee’s Base Salary in its
sole discretion based on such review.

 

3.2               Incentive
Plans.  Starting in 2010, the Company may, in its
sole discretion, provide the Employee with the opportunity to participate in
bonus or incentive plans from time to time adopted by Phase Forward and in
effect for employees of Phase Forward in similar positions.  Employee’s participation will be subject to (a) the
terms of the applicable plan documents, (b) generally applicable Phase
Forward policies, and (c) the discretion of management, the Board or any
administrative or other committee provided for in, or contemplated by, such
plan.

 

3.3               Restricted
Stock Units.  Upon execution of this Agreement by Phase
Forward, Phase Forward will issue to Employee restricted stock units under the
Restricted Stock Unit Award Agreement attached hereto as Exhibit A
(the “RSU Agreement”).

 

3.4               Benefits. 
During Employee’s employment, and subject to any contribution generally
required of employees of Phase Forward, Employee will be eligible to
participate in all employee health and benefits plans from time to time adopted
by Phase Forward and in effect for employees of Phase Forward in similar
positions.  Employee’s participation will
be subject to (a) the terms of the applicable plan documents, (b) generally
applicable Phase Forward policies, and (c) the discretion of the Board or
any administrative or other committee provided for in, or contemplated by, such
plan.

 

Phase
Forward’s current plans and policies will govern all other benefits, unless
Phase Forward notifies you that any of the Acquired Company’s policies or
benefits will govern any benefits.  Phase
Forward and/or the Board of Directors may alter, modify, add to, or delete its
employee benefits plans and policies at any time as Phase Forward and/or the
Board of Directors, each in its sole judgment, determines to be appropriate.

 

3.5               Taxes;
Exclusivity.  Phase Forward will make deductions,
withholdings and tax reports with respect to payments under this Agreement to
the extent that it reasonably and in good faith believes that it is required to
make such deductions, withholdings and tax reports.  Payments under this Agreement will be in
amounts net of any such deductions or withholdings.  Nothing in this Agreement will be construed
to require Phase Forward to make any payments to compensate Employee for any
adverse tax effect associated with any payments or benefits or for any
deduction or withholding from any payment. 
Employee will not be entitled to any payments other than those provided
under this Agreement.

 

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3.6               Vehicle.  From
and after the Effective Date, Phase Forward agrees to make all lease payments
under that certain Motor Vehicle Lease Agreement, between Devon Hill Motors and
Clarix LLC, dated               .

 

3.7               [Green Card.  Phase Forward agrees continue
to sponsor Employee’s application for United States lawful permanent residence
(i.e. “green card”).]

 

4.     Termination.  Employee or Phase Forward may
terminate Employee’s employment relationship at any time, with or without
notice, for any or no reason, subject to the provisions of Section 5.

 

5.     Effect of Termination.  The
provisions of this Section 5 will apply in the event of termination of
this Agreement and/or Employee’s employment.

 

5.1               Termination
by Phase Forward without Cause or Resignation for Good Reason.

 

5.1.1        Severance Payment; Base Salary and Accrued
Vacation.  If (a) Employee terminates the employment
relationship as a result of a Resignation for Good Reason (as hereinafter
defined), or (b) Phase Forward terminates the employment relationship at
any time without Cause (as hereinafter defined), then Employee will be entitled
to receive a payment equal to 50% (i.e., six (6) months)
of Employee’s Base Salary, at the highest annualized rate in effect during the
one-year period immediately prior to the Termination Date payable in
installments on a semi-monthly basis beginning within 30 days after the Termination
Date.  In addition, Phase Forward will
pay Employee for any Base Salary earned but unpaid through the date of
termination and any accrued but unused vacation time through the date of
termination in a lump sum payment within thirty (30) days following the
Termination Date (subject to the expiration of any applicable revocation period
required by law).

 

5.1.2        Benefits Continuation.  If
Employee’s employment is terminated under the circumstances described in Section 5.1.1
and in the event Employee elects after the Termination Date to continue health,
vision and/or dental coverage pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), Phase Forward will pay, on a
monthly basis, Employee’s monthly COBRA payments for each such coverage elected
by Employee for Employee and his or her eligible dependents, if applicable,
until the earliest of the following dates to occur with respect to each such
elected coverage:  (a) the sixth
month anniversary of the Termination Date; (b) the date upon which
Employee becomes covered under a comparable group plan for such applicable
coverage; or (c) the date upon which Employee ceases to be eligible for
COBRA continuation for such applicable coverage.

 

5.1.3        Conditions of Severance Benefits. 
Employee shall receive the severance benefits described in Sections
5.1.1 and 5.1.2 only if Employee:  (a) executes
a separation agreement, which includes a general mutual release, in a form and
of a scope reasonably acceptable to Phase Forward within 30 days after the
Termination Date and the seven-day revocation period for such release has
expired; (b) returns all 

 

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property,
equipment, confidential information and documentation of Phase Forward within
30 days after the Termination Date; and (c) has complied and continues to
comply in all material respects with any noncompetition, inventions and/or
nondisclosure obligations that Employee may owe to Phase Forward, whether
pursuant to an agreement or applicable law. 
In the event that Employee has breached any obligations described in the
foregoing clause (c) of this Section 5.1.3, then (x) the
severance benefits described in Sections 5.1.1 and 5.1.2 shall terminate and
Employee shall no longer be entitled to them; (y) Employee shall promptly
repay to Phase Forward any severance-related payments made to or on behalf of
Employee under Sections 5.1.1 and 5.1.2; and  (z) all
options, awards and purchase rights held by Employee shall no longer be
exercisable as of the date of Employee’s breach.  Such termination and repayment of severance
benefits and cessation of the right to exercise  shall
be in addition to, and not in lieu of, any and all available legal and
equitable remedies, including injunctive relief.

 

5.2               Termination
by Phase Forward for Cause or Resignation by Employee other than a Resignation
for Good Reason.

 

5.2.1        Base Salary and Accrued Vacation.  If (a) Employee
terminates the employment relationship at any time other than a Resignation for
Good Reason, or (b) Phase Forward terminates the employment relationship
at any time for Cause, then Phase Forward will have no further obligation or
liability to Employee under this Agreement, other than to pay Employee for any
Base Salary earned but unpaid through the date of termination and any accrued
but unused vacation time through the date of termination.

 

5.2.2        Termination of Benefits. 
Except for any right of continuation of benefits coverage to the extent
provided by this Agreement and/or COBRA or other applicable law, benefits will
terminate pursuant to the terms of the applicable benefit plans as of the
Termination Date of Employee’s employment under the circumstances described in Section 5.2.1.

 

5.3               Exclusive
Remedy.  Except as expressly set forth herein or otherwise
required by law, Employee shall not be entitled to any compensation, benefits,
or other payments as a result of or in connection with the termination or
resignation of Employee’s employment at any time, for any reason.  The payments and benefits set forth in Section 5
shall constitute liquidated damages and shall be Employee’s sole and exclusive
remedy for any claims, causes of action or demands arising under or in
connection with this Agreement or its alleged breach or the termination or
resignation of Employee’s employment relationship.

 

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5.4               Definitions.

 

5.4.1        For purposes of this Agreement, “Cause”
means any one or more of the following:  (a) Employee’s
willful failure or refusal (except due to Disability (as hereinafter defined)
or a condition reasonably likely to be deemed a Disability with the passage of
time) to perform substantially his duties on behalf of Phase Forward for a
period of thirty (30) days after receiving written notice identifying in
reasonable detail the nature of such failure or refusal; (b) Employee’s
conviction of, entry of a plea of guilty or nolo contendere to,
or admission of guilt in connection with a felony; (c) disloyalty, willful
misconduct or breach of fiduciary duty by Employee which causes material harm
to Phase Forward; or (d) Employee’s willful violation of any
confidentiality, development or non-competition agreement which causes material
harm to Phase Forward.

 

5.4.2        For purposes of this Agreement, “Disability”
means any physical or mental disability that renders Employee unable to perform
his essential job responsibilities for a cumulative period of 180 days in any
twelve-month period, where such disability cannot be reasonably accommodated
absent undue hardship.

 

5.4.3        For purposes of this Agreement, “Resignation
for Good Reason” will occur upon the receipt by Phase Forward of Employee’s
notice specified below, if any of the following “Events” occur without Employee’s
prior written consent during the three-year period beginning on the Effective
Date:  (a) the substantial reduction
of Employee’s base salary, in effect immediately following the Effective Date, (b) a
material change in the geographic location at which the Employee provides
services to Phase Forward in effect immediately prior to the Effective Date or (c) the
failure of any successor to, or assignee, of Phase Forward to assume the duties
and obligations of Phase Forward under this Agreement pursuant to Section 8.1
hereof; and within thirty (30) days after any such Event, Employee provides
written notice to Phase Forward describing with reasonable specificity the
Event and stating his intention to resign from employment due to such Event
upon which notice, Phase Forward shall have 30 days to cure such Event and if
Phase Forward fails to cure such Event, the Employee resigns within 30 days
thereafter.  Under no circumstances shall
receipt and/or acceptance of the foregoing notice be deemed Phase Forward’s
acknowledgement that any such Event has occurred.

 

5.4.4        For purposes of this Agreement, “Termination
Date” means Employee’s last date of employment with Phase Forward.

 

5.4.5        Section 409A.

 

(a)           Anything in this Agreement to the contrary
notwithstanding, if at the time of the Employee’s separation from service
within the meaning of Section 409A of the Code, Phase Forward determines
that the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code, then to the extent any payment or benefit that the Employee 

 

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becomes entitled to under this Agreement would be considered deferred
compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of
the Code as a result of the application of Section 409A(a)(2)(B)(i) of
the Code, such payment shall not be payable and such benefit shall not be
provided until the date that is the earlier of (A) six months and one day
after the Employee’s separation from service, or (B) the Employee’s
death.  If any such delayed cash payment
is otherwise payable on an installment basis, the first payment shall include a
catch-up payment covering amounts that would otherwise have been paid during
the six-month period but for the application of this provision, and the balance
of the installments shall be payable in accordance with their original
schedule.

 

(b)           The parties intend that this Agreement will
be administered in accordance with Section 409A of the Code.  To the extent that any provision of this
Agreement is ambiguous as to its compliance with Section 409A of the Code,
the provision shall be read in such a manner so that all payments hereunder
comply with Section 409A of the Code. 
The parties agree that this Agreement may be amended, as reasonably
requested by either party, and as may be necessary to fully comply with Section 409A
of the Code and all related rules and regulations in order to preserve the
payments and benefits provided hereunder without additional cost to either
party.

 

(c)           The determination of whether and when a
separation from service has occurred shall be made in accordance with the
presumptions set forth in Treasury Regulation Section 1.409A-1(h).

 

(d)           Phase Forward makes no representation or
warranty and shall have no liability to the Employee or any other person if any
provisions of this Agreement are determined to constitute deferred compensation
subject to Section 409A of the Code but do not satisfy an exemption from,
or the conditions of, such Section.

 

6.     Noncompetition and Related Matters.

 

6.1               Employee
Agreement.  As a condition of employment with Phase
Forward and under this Agreement, whether in the position contemplated by this
Agreement or any other position held by Employee during the term of employment,
Employee will execute, prior to the execution of this Agreement by Phase
Forward, the agreement attached hereto as Exhibit B related to
confidentiality, intellectual property ownership and non-competition (the “Employee
Agreement”). The obligations of Employee under the Employee Agreement
expressly survive (a) any termination of Employee’s employment to the
extent provided in the Employee Agreement, regardless of the manner of such
termination, or termination of this Agreement and (b) any change in
Employee’s position, role, compensation or responsibilities.

 

Employee
hereby acknowledges that (a) as a holder of membership interests of the
Acquired Company he will derive financial benefit from the Transaction, (b) Employee’s
willingness to sign the agreement attached hereto as Exhibit B is 

 

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intended
to induce Phase Forward to enter into the UPA and consummate the transactions
contemplated thereby, and (c) the agreements, covenants and restrictions
contained in Exhibit B are reasonable in light of Phase Forward’s
need to protect its business, including the business of the Acquired Company.

 

6.2               Equitable
Relief.  Employee agrees that any breach of the
noncompetition provisions set forth in the Employee Agreement by Employee will
cause irreparable damage to Phase Forward and that in the event of such breach
Phase Forward will have, in addition to any and all remedies of law, the right
to an injunction, specific performance or other equitable relief to prevent
Employee’s violation of Employee’s obligations thereunder.

 

7.     Conflicting Agreements. 
Employee hereby warrants that the execution of this Agreement and the
performance of his obligations hereunder will not breach or be in conflict with
any other agreement to which or by which Employee is a party or is bound and
that Employee is not now subject to and will not enter into any agreement,
including, without limitation, any covenants against competition or similar
covenants that would affect the performance of his obligations hereunder.

 

8.     Miscellaneous.

 

8.1               Assignment. 
Employee will not assign this Agreement or any interest herein.  Phase Forward may assign this Agreement, and
it is specifically understood and agreed that no such assignment by Phase
Forward will be deemed to be a “termination” of Employee’s employment with
Phase Forward within the meaning of Section 4 hereof.  This Agreement will inure to the benefit of
Phase Forward’s successors and assigns and will be binding upon Phase Forward’s
successors and assigns and upon Employee and his executors, administrators and
heirs.

 

8.2               Severability.  If
any portion or provision of this Agreement will to any extent be declared
illegal or unenforceable by a court of competent jurisdiction, then the
application of such provision in such circumstances will be modified to permit
its enforcement to the maximum extent permitted by law, and both the
application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable and the remainder of this
Agreement will not be affected thereby, and each portion and provision of this
Agreement will be valid and enforceable to the fullest extent permitted by law.

 

8.3               Waiver;
Amendment.  No waiver of any provision hereof will be
effective unless made in writing and signed by the waiving party.  The failure of Phase Forward to require the
performance of any term or obligation of this Agreement, or the waiver by Phase
Forward of any breach of this Agreement, will not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.  This Agreement may be amended or
modified only by a written instrument signed by Employee and a person
authorized by the Board of Directors of Phase Forward.

 

8.4               Notices.  All
notices, requests and other communications provided for by this Agreement will
be in writing and will be effective when delivered in person or three (3) business
days after being deposited in the mail of the United States, postage prepaid,
registered or certified, and addressed (a) in the case of Employee, to the

 

7

 

address
set forth underneath his signature to this Agreement or (b) in the case of
Phase Forward, to the attention of its General Counsel and/or to such other
address as either party may specify by notice to the other.

 

8.5               Entire
Agreement.  This Agreement and the agreements identified
as exhibits hereto constitute the entire agreement between Phase Forward and
Employee with respect to the terms and conditions of Employee’s employment with
Phase Forward or the Acquired Company and supersede all prior communications,
agreements and understandings, written or oral, between Employee and Phase
Forward or the Acquired Company with respect to the terms and conditions of Employee’s
employment with Phase Forward.

 

8.6               Counterparts.  This
Agreement may be executed in counterparts, each of which will be original and
all of which together will constitute one and the same instrument.

 

8.7               Governing
Law.  This Agreement, the employment relationship
contemplated herein and any claim arising from such relationship, whether or
not arising under this Agreement, will be governed by and construed in
accordance with the internal laws of the Commonwealth of Massachusetts without
giving effect to any choice or conflict of laws provision or rule thereof.

 

8.8               Consent
to Jurisdiction.  Each of Phase Forward and Employee, by its or
his execution hereof, hereby irrevocably submits to the exclusive jurisdiction
of the state or federal courts of the Commonwealth of Massachusetts for the
purpose of any claim or action arising out of or based upon this Agreement,
Employee’s employment with Phase Forward and/or termination thereof, or
relating to the subject matter hereof, and agrees not to commence any such
claim or action other than in the above-named courts.

 

8.9               Survival.  The
provisions of Section 6, Section 8 (to the extent applicable), the
RSU Agreement and the Employee Agreement will survive the termination of this
Agreement, in each case to the extent not satisfied as of the Termination Date.

 

IN WITNESS WHEREOF, this Employment Agreement has been executed by Phase Forward, by its
duly authorized representative, and by Employee, as of the date first above
written.

 

 

	
   

  	
  PHASE
  FORWARD INCORPORATED

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

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