Document:

Exhibit 10.18

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT
AGREEMENT, dated as of March 9, 2004 (this “Agreement”), by and among Universal
American Financial Corp. (“Universal”), Heritage Health Systems, Inc. (the
“Company”) and Theodore Carpenter, Jr. (“Executive”).

 

WHEREAS,
Universal, the Company and Executive wish to enter into an agreement relating
to the employment of Executive by the Company;

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the parties agree as follows:

 

1.                                       Term
of Employment. Subject to the provisions of Section 8 of this
Agreement, Executive shall be employed by the Company for a period commencing
(the “Commencement Date”) on the closing of the transaction (the “Transaction”)
contemplated by the Agreement and Plan of Merger, dated as of the date hereof
(the “Merger Agreement”), among Universal, HHS Acquisition Corp., the Company
and Carlyle Venture Partners, L.P., as the stockholders representative, and
ending on first  anniversary of the
Commencement Date (such period, as extended pursuant to the immediately
following proviso, if applicable, the “Employment Term”), on the terms and
subject to the conditions set forth in this Agreement; provided, however,
the Employment Term shall automatically be renewed for successive one year
periods unless the Company gives Executive ninety (90) days prior notice of its
intent not to renew this Agreement. Notwithstanding anything to the contrary
herein, this Agreement shall automatically terminate concurrently with any
termination of the Merger Agreement.

 

2.                                       Position.

 

a.                                       During
the Employment Term, Executive shall serve as the Company’s Executive Vice
President and Chief Operating Officer and President and Chief Executive Officer
of SelectCare of Texas, LLC or (subject to Section 8(a)(i)) such other
title or position as may be determined by the Board (as defined below).

 

b.                                      You
will be based initially at the Company’s offices at Nashville, Tennessee (and
travel between Nashville, Tennessee and Houston, Texas as necessary). Executive
agrees that he will relocate to the Company’s offices in Houston, Texas at such
time as reasonably agreed upon by the Company and Executive. Executive shall be
entitled to the standard relocation benefits as are customarily accorded to
similarly situated employees of Universal in accordance with Universal’s
policies regarding payment of relocation benefits then in effect. During the
Employment Term, Executive will devote his full business time to the performance
of his duties hereunder and will not engage in any other business, profession
or occupation for compensation or otherwise which would conflict with the
rendition of such services either directly or indirectly, without the prior
written consent of the Board of Directors of Universal (the “Board”). Nothing
contained herein shall preclude Executive from (i) serving on corporate,
civic and charitable boards or committees and (ii) managing his personal
investments; provided that none of the activities set forth in clauses (i) and
(ii) interfere in any

 

 

material respect with the
performance of Executive’s employment hereunder or conflict in any material
respect with the business of the Company.

 

3.                                       Base
Salary. During the Employment Term, the Company shall pay Executive a base
salary (the “Base Salary”) at the annual rate of $290,850, payable in regular
installments in accordance with the Company’s usual payment practices. Executive
shall be entitled to such annual increases in his Base Salary, if any, as may be
determined in the sole discretion of the compensation committee of the Board.

 

4.                                       Bonus.

 

a.                                       For
the fiscal year ended 2004, Executive shall be eligible to earn an annual bonus
(as may be changed in accordance with the immediately following sentence, the
“Bonus”) equal to 33% of the Base Salary if the Company’s 2004 net income,
before interest expense, income taxes, depreciation and amortization (each as
determined in accordance with generally accounting principles in the United
States, in each case consistently applied) is equal to or greater than $14.7
million. For any period following December 31, 2004 during which this
Agreement is in full force and effect, the Board shall establish a target
annual bonus based on the achievement of goals established by the Board; provided,
however, that if such goals are not established such amount shall be
determined by reference to the existing Universal executive bonus plan.

 

b.                                      Subject
to Section 4(a) above, as soon as practicable after the end of the
fiscal year (but in no event later than 45 days after the end of the fiscal
year), the Bonus shall be paid (i) seventy percent (70%) in cash and (ii) thirty
(30%) in shares of the common stock, par value $1.00 per share, of Universal
issued by Universal (“Shares”) based on the Market Value (as defined below) of
the Shares on the date of issuance. For purposes of this paragraph, “Market
Value” means the 20-day average of the closing price of the Shares on Nasdaq
or, if the Shares are not then-traded on Nasdaq, on such other national stock
exchange on which the Shares are principally traded.

 

5.                                       Equity
Arrangements. Executive shall be entitled to an initial grant on the
Commencement Date of stock options to purchase 60,000 Shares (the “Options”)
under Universal’s 1998 Incentive Compensation Plan (the “1998 Plan”). Options
representing the right to purchase such 60,000 Shares shall vest ratably over a
four year period, subject to Executive’s continued employment with the Company,
with 1/5 of such Shares initially granted vesting on the date of grant and each
of the first, second, third and fourth anniversaries of the date of grant; provided,
however, that the Options shall vest immediately upon a “change in
control” (as defined in the 1998 Plan). Except as otherwise provided in this
Agreement, all unvested Options shall immediately terminate and expire upon
Executive’s termination of employment.

 

6.                                       Employee
Benefits. During the Employment Term, Executive shall be provided, in
accordance with the terms of Universal’s employee benefit plans as in effect
from time to time, health insurance and short term and long term disability
insurance, retirement

 

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benefits, vacation and
fringe benefits (collectively “Employee Benefits”) on the same basis as those
benefits are generally made available to other senior executives of Universal.

 

7.                                       Business
Expenses. During the Employment Term, reasonable business expenses incurred
by Executive in the performance of his duties hereunder shall be reimbursed by
the Company in accordance with Company policies.

 

8.                                       Termination.
Notwithstanding any other provision of this Agreement:

 

a.                                       By
the Company For Cause or By Executive Resignation Without Good Reason.

 

(i) 
The Employment Term and Executive’s employment hereunder may be terminated
by the Company for Cause (as defined below) or by Executive’s resignation
without Good Reason. For purposes of this Agreement, “Good Reason” shall mean
(w) the Company’s requiring Executive to be based at any office or location
other than in the greater metropolitan area of Houston, Texas or Nashville,
Tennessee; (x) a material
diminution in Executive’s responsibilities, authority or scope of duties is
effected by the Board (without regard to whether or not any change is made to
Executive’s title); (y) any reduction in Executive’s Base Salary; or (z)
failure of any successor to all or substantially all of the business of the
Company to assume this Agreement.

 

(ii) 
For purposes of this Agreement, “Cause” shall mean (a) Executive has
engaged in gross negligence, gross incompetence or willful misconduct in the
performance of, or Executive’s willful refusal without proper reason to
perform, the duties and services required of Executive by the Board; (b) any
willful act or omission of Executive which is demonstrably and materially
injurious to the Company or any of its subsidiaries or affiliates; (c) Executive’s
conviction or plea of nolo contendere to a felony or other crime of moral
turpitude; or (d) Executive’s material breach of any provision of this
Agreement which is not cured or capable of being cured within 30 days following
the Company’s written notice of such breach to Executive; provided, however,
that a breach of Section 9 hereof shall not be subject to such 30-day cure
period.

 

(iii) 
If Executive’s employment is terminated by the Company for Cause, or if
Executive resigns without Good Reason, Executive shall be entitled to receive (A) any
accrued but unpaid Base Salary through the date of termination and (B) such
Employee Benefits, if any, as to which Executive may be entitled under the
employee benefit plans of the Company. Following such termination of Executive’s
employment by the Company for Cause or resignation by Executive without Good
Reason, except as set forth in this Section 8(a), Executive shall have no
further rights to any compensation or any other benefits under this Agreement.

 

b.                                      Disability
or Death.

 

(i) 
The Employment Term and Executive’s employment hereunder shall terminate (A) upon
his death or (B) if Executive becomes physically or mentally incapacitated
for a period of ninety (90) consecutive days or for an aggregate of six (6) months
in any twelve

 

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(12) consecutive month
period during which he is unable to perform his duties, with or without
reasonable accommodation, (such incapacity is hereinafter referred to as “Disability”).
Any question as to the existence of the Disability of Executive as to which
Executive and the Company cannot agree shall be determined in writing by a
qualified independent physician mutually acceptable to Executive and the
Company. If Executive and the Company cannot agree as to a qualified
independent physician, each shall appoint such a physician and those two physicians
shall select a third who shall make such determination in writing.

 

(ii) 
Upon termination of Executive’s employment hereunder for death or Disability,
Executive or his estate (as the case may be) shall be entitled to receive
(x) any accrued but unpaid Base Salary through the end of the month in which
such termination occurs and (y) such Employee Benefits, if any, as to which he may be
entitled under employee benefits plans of the Company. Following such
termination of Executive’s employment due to death or Disability, except as set
forth in this Section 8(b), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

c.                                       By
the Company Without Cause or Resignation by Executive for Good Reason

 

(i) 
The Employment Term and Executive’s employment hereunder may be terminated
by the Company without Cause or by Executive’s resignation for Good Reason.

 

(ii) If
Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if Executive resigns for Good Reason,
Executive shall be entitled to receive (u) any accrued but unpaid Base Salary
through the date of termination, (v) within thirty (30) business days
after such termination, unpaid Bonus for the fiscal year prior to termination,
(w) within thirty (30) business days after such termination, a lump sum payment
equal to 200% of Executive’s Base Salary, (x) continued coverage under the
Company’s medical benefit plans available to senior executives for a period of
twelve (12) months or comparable coverage for such period, (y) coverage under
the Consolidated Omnibus
Reconciliation Act of 1985, as amended (COBRA) for a period of twelve
(12) months from the date of termination, which coverage shall be paid by the
Company less an amount equal to Executive’s share of the premium in effect
prior to termination, and (z) such Employee Benefits, if any, as to which
Executive may be entitled under the employee benefit plans of the Company.

 

d.                                      Notice
of Termination. Any purported termination of employment by the Company or
by Executive (other than due to Executive’s death) shall be communicated by
written Notice of Termination to the other party hereto in accordance with Section 12(g) hereof.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice
which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under
the provision so indicated.

 

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9.                                       Non-Competition
and Non-Solicitation. (a) Executive acknowledges and recognizes the
highly competitive nature of the businesses of Universal and its subsidiaries
and accordingly agrees as follows:

 

(1)                                  During the Employment
Term and for a period of twenty-four (24) months following Executive’s
termination of employment (the “Restricted Period”), Executive will not,
directly or indirectly, (i) engage in any business that is in Competition
with the business of the Company or its subsidiaries (including, without
limitation, businesses which the Company or its subsidiaries have specific
plans to conduct in the future and as to which Executive is aware of such
planning), (ii) render any services, as an employee or otherwise, to any
business in Competition with the business of the Company or its subsidiaries, (iii) acquire
a financial interest in any person or entity engaged in any business that is in
Competition with the business of the Company or its subsidiaries, as an
individual, partner, shareholder, officer, director, principal, agent, trustee
or consultant, (iv) interfere with business relationships (whether formed
before or after the date of this Agreement) between the Company or any of its
affiliates and their customers (including, without limitation, any member of
the Company or its subsidiaries) and suppliers, or (v) solicit, raid,
entice or induce any person or entity that currently or at any time during the
Employment Term is a customer (including, without limitation, any member of the
Company or its subsidiaries) or supplier (or actively pursued as a potential
customer or supplier), of Universal or its affiliates, to become a customer or
supplier of any person or entity (other than Universal or its affiliates) for
products or services the same as, or in Competition with, those products and
services as from time to time shall be provided by the Company or its
affiliates. For purposes of this Section 9, a business shall be deemed to
be in “Competition” with the business of the Company or its subsidiaries if
such business substantially involves (i) the provision of any services or
products provided by the Company or its subsidiaries as a material part of
the business of the Company or any of its subsidiaries or (ii) the
purchase or sale of any property (other than securities purchased for
investment) purchased or sold by the Company or any of its subsidiaries as a
material part of the business of the Company or any of its subsidiaries. For
the avoidance of doubt, Executive shall not be prohibited from rendering any
services to any company (even if such company is engaged in a business which is
in Competition with the business of the Company or any of its subsidiaries) if
such services relate to a business of the company that is not in Competition
with the business of the Company or any of its subsidiaries. For purposes of
this Agreement, (x) a “subsidiary” of the Company means any person or entity that,
directly or indirectly, through one or more intermediaries, is controlled by
the Company, including, without limitation, SelectCare of Texas, LLC, Golden
Triangle Physician Alliance and Heritage Physician Networks and (y) the term “members”
shall mean those employees or members and their dependents who have elected to
receive health care services from participating providers that have contracted
with the Company or any of its subsidiaries.

 

(2)                                  Notwithstanding
anything to the contrary in this Agreement, Executive may, directly or indirectly,
own securities of any person engaged in the business of Universal or its
affiliates which are publicly traded on a national or regional stock exchange
or on the over-the-counter market if Executive (i) is not a controlling
person of, or a member of a

 

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group which controls,
such person and (ii) does not, directly or indirectly, own three percent
(3%) or more of any class of securities of such person.

 

(3)                                  During the Restricted
Period, Executive will not, directly or indirectly, solicit or encourage any
employee of Universal or its subsidiaries (including, without limitation, any
providers of the Company or its affiliates) to leave the employment of
Universal or its subsidiaries. During the Restricted Period, Executive will
not, directly or indirectly hire any employee of Universal or its subsidiaries
or former employee of Universal or its subsidiaries within six (6) months
following such former employee’s termination of employment from Universal or
such subsidiary.

 

(b)                                 It is expressly
understood and agreed that although Executive and the Company consider the
restrictions contained in this Section 9 to be reasonable, if a final
judicial determination is made by a court of competent jurisdiction that the
time or territory or any other restriction contained in this Agreement is an
unenforceable restriction against Executive, the provisions of this Agreement
shall not be rendered void but shall be deemed amended to apply as to such
maximum time and territory and to such maximum extent as such court may judicially
determine or indicate to be enforceable. Alternatively, if any court of
competent jurisdiction finds that any restriction contained in this Agreement
is unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

 

10.                                 Confidentiality.
Executive will not at any time (whether during or after his employment with the
Company), unless required by a court or administrative agency, disclose or use
for his own benefit or purposes or the benefit or purposes of any other person,
firm, partnership, joint venture, association, corporation or other business
organization, entity or enterprise other than Universal and any of its
subsidiaries or affiliates, any trade secrets, information, data, or other
confidential information relating to customers, members development programs,
costs, marketing, trading, investment, sales activities, promotion, credit and
financial data, manufacturing processes, financing methods, plans, or the
business and affairs of Universal generally, or of any subsidiary or affiliate
of Universal, provided that the foregoing shall not apply to information
which is not unique to Universal or which is generally known to the industry or
the public other than as a result of Executive’s breach of this covenant.

 

11.                                 Excise
Tax. (a)  In the event it shall be determined that any payment,
benefit or distribution, or any acceleration of vesting (or combination
thereof) by the Company or one or more trusts established by the Company or
Universal for the benefit of its employees, to or for the benefit of Executive
(whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement, or under the terms of any other plan, program agreement or
arrangement) (a “Payment”) would be subject to the excise tax imposed by Section 4999
of the Code (which relates to payments that are contingent on a change in
ownership or effective control of, or the ownership of a substantial portion of
the assets of, a corporation) the amounts payable under this Agreement shall be
reduced (but not below zero) if and to the extent that such reduction would
result in Executive retaining a larger amount on an after-tax basis (taking
into

 

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account all federal,
state and local income taxes and the imposition of the excise tax imposed by Section 4999
of the Code) than if Executive had received all of the Payments.

 

(b)                                 All determinations
required to be made under this Section 11 shall be made by a nationally
recognized certified public accounting firm as shall be mutually agreed to by
Executive and the Company (the “Accounting Firm”) which shall provide detailed
supporting calculations both to the Company and Executive within fifteen (15)
business days after the receipt of notice from Executive or the Company that
there has been a Payment, or such earlier time as is requested by either party.
All fees and expenses of the Accounting Firm shall be borne solely by the
Company.

 

12.                                 Miscellaneous.

 

a.                                       Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without regard to conflicts of laws
principles thereof.

 

b.                                      Entire
Agreement/Amendments. This Agreement contains the entire understanding of
the parties with respect to the employment of Executive by Universal and the
Company. There are no restrictions, agreements, promises, warranties, covenants
or undertakings between the parties with respect to the subject matter herein
other than those expressly set forth herein. This Agreement may not be
altered, modified, or amended except by written instrument signed by the
parties hereto.

 

c.                                       No
Waiver. The failure of a party to insist upon strict adherence to any term
of this Agreement on any occasion shall not be considered a waiver of such
party’s rights or deprive such party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement.

 

d.                                      Severability.
In the event that any one or more of the provisions of this Agreement shall be
or become invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not be affected thereby.

 

e.                                       Assignment.
This Agreement shall not be assignable by Executive. This Agreement may be
assigned by the Company to a company which is a successor in interest to
substantially all of the business operations of the Company. Such assignment
shall become effective when the Company notifies Executive of such assignment
or at such later date as may be specified in such notice. Upon such
assignment, the rights and obligations of the Company hereunder shall become
the rights and obligations of such successor company, provided that any
assignee expressly assumes the obligations, rights and privileges of this
Agreement.

 

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f.                                         Successors;
Binding Agreement. This Agreement shall inure to the benefit of and be
binding upon personal or legal representatives, executors, administrators,
successors, heirs, distributes, devises and legatees.

 

g.                                      Notice.
For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, addressed to the respective
addresses set forth on the execution page of this Agreement or such other
address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt.

 

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

 

i.                                          Headings.
The insertion of headings in this Agreement are for convenience of reference
only and shall not affect or be utilized in construing or interpreting this
Agreement.

 

j.                                          Counterparts.
This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 

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IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

 

 

	
   

  	
  /s/ Theodore
  Carpenter, Jr.

  	
   

  
	
   

  	
  Theodore
  Carpenter, Jr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HERITAGE
  HEALTH SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rock A.
  Morphis

  	
   

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
  Address

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNIVERSAL
  AMERICAN FINANCIAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard A.
  Barasch

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  AddressExhibit 10.75

 

 

 

December
13, 2005

 

Timothy
P. Enright

645
Martins Pond Road

Groton,
MA 01450

 

On behalf of iBasis, Inc. (iBasis), it is a pleasure to
extend to you an offer of employment as Senior Vice President, Retail.  In this position you will be assigned to our
Burlington, Massachusetts, office and you will report to Ofer Gneezy, President & Chief Executive Officer.

 

We anticipate your regular employment to begin on January
2, 2006.  Your starting base salary of
$180,000 will be payable on a bi-weekly basis at a rate of $6,923.08.

 

In addition, you will also be eligible to receive an annual
bonus, at plan, of $90,000. This bonus will be based on the achievement of corporate
net income for 2006. As with all iBasis executives, any such bonus is subject to
corporate performance generally, and remains at the discretion of the
Compensation Committee of the Board of Directors.

 

A
recommendation will be made to the Board of Directors to grant you the right to
purchase 100,000 shares of iBasis Inc. Incentive Stock Options. The
Compensation Committee of the Board of Directors meets at the end of the
quarter to approve grants. The option price is based on fair market value. You
will receive a copy of the stock plan and your option grant agreement within
ninety (90) days of its approval by the Board. These options vest over a
four-year period.

 

In the event that iBasis, Inc. (“Company”) terminates your
employment without cause or you terminate your employment for good reason, in
either case within six months after the occurrence of an acquisition or change
in control, then the Company will continue to pay your base salary and provide
health benefits for nine months and your options shall immediately vest and
become exercisable, and each option shall remain exercisable until the
expiration of the option or until it sooner terminates in accordance with its
terms.  The benefits, terms, and
terminology used here shall be accorded the meaning contained in, and be
interpreted consistent with, employment agreements currently in effect between
the Company and its executive officers.

 

 

 

 

 

iBasis offers employees a competitive benefits plan.  Information on our benefits and retirement
plans are enclosed.  More information on
how to enroll will be provided to you on your first day of work.

 

You acknowledge that you have received informal assurances
that your current employer will waive any contractual obligations that would in
any way limit your ability to work for iBasis.

iBasis complies with the
Immigration Reform and Control Act of 1986, which requires all new employees to
provide documentation of their legal right to work in the United States. You
will be asked to complete an Employment Eligibility Form (Form I-9) within 3
days of starting employment.

 

The
iBasis Employment Agreement has been enclosed in this package.  This document refers to the nondisclosure of
company confidential information and ownership of inventions.  iBasis requires that all employees sign this
document.

 

While it is our belief that our relationship will be a
positive one, it is appropriate to advise you that iBasis is an “at-will”
employer and does not offer employment on a fixed term basis and either you or
the company can terminate it at any time and for any reason.

 

Please confirm acceptance of this
offer by signing this letter where indicated and returning it to me no later
than Monday, December 19, 2005.

 

Tim, all of us here look very
forward to having you join us.  Should
you have any questions concerning any part of this offer, please do not hesitate
to call me at (781) 505-7877.

 

Sincerely,

 

Tamah Rosker

Vice President, Human Resources

 

	
  Accepted:

  	
  /s/ Timothy P. Enright

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

 

 

iBASIS EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is
made and entered into by and between iBasis, Inc., a Delaware corporation having its principal place of
business at 20 Second Avenue, Burlington, MA 01803 (together with its
successors and assigns, and any of its present or future subsidiaries, or
organizations controlled by, controlling or under common control with it, the “Company”)
and its Employee (the “Employee”).

 

RECITALS

 

WHEREAS,
the Company recognizes that the Employee’s talents and liabilities are unique
and valuable, and thus wishes to secure the services of the Employee on the
terms and conditions set forth herein; and

 

WHEREAS, the Company desires to engage the Employee
based on the Employee’s particular qualifications, in a capacity in which the
Employee may receive, initiate, contribute to or come in contact with
Confidential and Proprietary Information (as hereinafter defined), and the
Employee desires to be engaged in such a capacity; and

 

WHEREAS, the Employee specifically acknowledges that
this engagement may include inventing, discovering, initiating or contributing
to Confidential or Proprietary Information and that the rights to such
information are intended to belong solely to the Company;

 

NOW, THEREFORE, in consideration of the mutual
promises and conditions hereinafter contained, and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

 

Section 1.              Employment. 

 

1.1                                 Employment.  The Company
hereby agrees to employ the Employee under the terms set forth in this
Agreement and the letter confirming employment sent to Employee by the Company.

1.2                                 Duties.  The Employee
shall have such duties as are assigned to the Employee by the Company.  The Employee agrees to use the Employee’s
best efforts to promote the success of the Company’s business, and to advance
the best interests of the Company.  The
Employee shall devote substantially all of the Employee’s working time,
attention and energies during normal business hours (other than absences due to
illness or vacation) to the performance of the Employee’s duties for the
Company.   During the term of the
Employee’s employment with the Company, the Employee will not engage in any
other employment or consulting activities for any third party for direct or
indirect remuneration without written consent of the Company.

1.3                                 Salary.  During the
Employee’s engagement by the Company, the Company will pay the Employee an
annual salary, to be paid in accordance with the Company’s payroll practices
and policies and subject to applicable withholdings.  “Exempt” positions are exempt from overtime
pay, and the Employee’s salary will compensate the Employee for all hours
worked.  “Non-exempt” positions will be
eligible to earn overtime on any time in excess of forty (40) hours worked in a
week.

 

 

 

Section
2.              Term.

There is
no specified length of employment. 
Accordingly, either the Employee or the Company may terminate the
employment relationship at will, with or without cause, at any time.  In conjunction with this policy of “at-will”
employment, the Employee may also be disciplined, demoted or have her or his
job responsibilities reassigned by the Company for any reason at the Company’s
sole discretion.

Section
3.              Inventions and Other
Intellectual Property

3.1                                 Definitions. 
As used in this Agreement, the term “Company’s Facilities, Material or Personnel” means
facilities, material or personnel owned, leased, occupied or controlled by the
Company as well as the facilities, materials or personnel of third parties
rented, leased or otherwise hired by the Company for the conduct of aspects of
the business of the Company, and the term “Inventions
and Other Intellectual Property” means inventions, discoveries,
concepts, developments, and ideas, whether patentable or not, including but not
limited to software and hardware systems and services, devices, processes,
methods, formulae, and works of authorship including computer programs, and
operations, training and maintenance manuals.

3.2                                 Ownership.  The Employee
hereby agrees that all right, title and interest in and to all of the Employee’s
Inventions and Other Intellectual Property made during the period of employment
with the Company, whether pursuant to this Agreement or otherwise, and whether
or not during the hours of the Employee’s engagement or with the use or
assistance of Company Facilities, Materials or Personnel, either solely or
jointly with others, shall belong solely to the Company, whether or not they
are protected or protectable under applicable patent, trademark, service mark,
copyright or trade secret laws.

3.3                                 Assignment of Rights. 
The Employee hereby assigns and agrees to assign to the Company or its
designee, all of the Employee’s right to and title and interest in all
Inventions and Other Intellectual Property, made or created during the Employee’s
period of employment with the Company, and to applications for United States
and foreign letters patent and United States and foreign letters patent granted
upon such Inventions and to all maskworks, copyrightable materials, trademark
materials, and materials related thereto made or created during the Employee’s
period of employment with the Company.

3.4                                 Assignment of Copyrights. To the extent that any work is not
assigned by provision of Paragraphs 3.2 and 3.3 of this
Agreement, all work by the Employee under the Agreement, regardless of where or
when the work is performed, is deemed to be a “work made for hire” to which
copyright vests with the Company.  To the
extent any work performed by the Employee under this Agreement is not a “work
made for hire,” the Employee hereby assigns and transfers, and agrees to assign
and transfer, the Employee’s copyright in the work to the Company.

3.5                                 Duty to Cooperate. 
The Employee agrees for himself and the Employee’s heirs, personal
representatives, successors and assigns, upon request of the Company, to at all
times during and after employment, perform all acts that are reasonable and
deemed necessary or desirable by the Company to secure the full benefits,
enjoyment, rights and title to the Inventions or Other Intellectual Property
and otherwise to carry into full force and effect the text and the intent of
the assignment agreement set out in Paragraphs 3.2, 3.3 and 3.4
preceding, including 

 

 

 

                                                but not limited to giving testimony in
support of the Employee’s inventorship, and to execute and deliver promptly to
the Company such papers, instruments and documents without expense to the
Employee, as from time to time may be necessary or useful in the Company’s
opinion to apply for, secure, enforce, maintain, reissue or defend the Company’s
or its designee’s worldwide rights in the Inventions and Other Intellectual
Property made or created during the Employee’s period of employment with the
Company or in any or all United States letters patent and in any and all
letters patent in any country foreign to the United States.  This obligation shall survive the term and
termination of this Agreement.  Employee
shall be compensated by the Company at reasonable rates for time in complying
with this provision after his termination from Employment.

3.6                                 No Violation of Third Party Agreements or
Policies.  The Employee warrants and represents to the
Company that she or he is not subject to any agreement or company or university
policy inconsistent with the Agreement regarding Inventions and Other Intellectual
Property set forth herein.

3.7                                 Attorney-in-Fact. 
In the event that the Company is unable for any reason to secure the
Employee’s signature on any document required to apply for or execute any
patent, copyright, mask work or other applications with respect to any
Inventions and Other Intellectual Property rights (including improvements,
renewals, extensions, continuations, decisions or continuations-in-part
thereof), the Employee hereby irrevocably designates and appoints the Company
and its duly authorized officers and agents as his/her agents and
attorneys-in-fact to act on his/her behalf and instead of Employee, to execute
and file any such application and to do all other lawfully permitted acts to
further the prosecution and issuance of patents, copyrights, mask works or
other rights made or created during the Employee’s period of Employment with
the Company thereon with the same legal force and effects as if executed by the
Employee.

 

Section
4.              Shop Right.

Notwithstanding any
provision of this Agreement creating greater rights, the Company shall have the
royalty-free worldwide right to use in its business, and to make, have made,
use, sell, offer for sale, or import products, processes and services derived
from, any inventions, discoveries, concepts and ideas, whether or not
patentable, including but not limited to systems, devices, software, processes,
methods, formulae, and techniques, as well as improvements thereof and know-how
related thereto, that are not Inventions as defined herein, but which are made
or conceived by the Employee during the Employee’s engagement by the Company or
associated companies or with the use or assistance of the Company’s Facilities,
Materials or Personnel to the extent permitted by applicable federal and state
law.

Section
5.              Confidentiality

5.1                                 Definitions. 
As used in this Agreement, the term “Confidential
and Proprietary Information” means Company trade secrets, as
well as any and all information disclosed to or known by the Employee as a
consequence of or through the Employee’s engagement by the Company or
associated companies or employees, or which the Employee has assigned or is
under an obligation to assign to the Company, about the Company’s plans,
products, processes and services, including, without limitation, (a)
information of a technical nature, such as

 

 

 

information regarding
past, present and future research, discoveries, ideas, concepts, know-how,
techniques, designs, specifications, drawings, blueprints, tracings, diagrams,
models, samples, data, product information, marketing plans, computer programs
(whether in source or object code form or other form and whether contained on
program listings, magnetic tape, magnetic disks, CD ROMs or other media),
computer program documentation, disks, diskettes, tapes, logic, flow charts,
specifications, documentation and ideas relating to the activities of the
Company, (b) information of a business nature, such as information regarding
past, present and future client development, financial data, prospective and
actual customer names, lists, or proposals, patent applications, business
information, strategic and development plans, employee lists, business manuals,
marketing plans, strategies, procurement specifications, contacts, quotations,
and (c) all documents, drawings, reports, client lists, and other physical
embodiments of all such information.

5.2                                 Except as specifically directed or
consented to by the Company in writing, the Employee will not, directly or
indirectly, during or after the term of the Employee’s engagement by the
Company, communicate, disclose, or cause to have communicated or disclosed, in
any way, any trade secrets of the Company or other Confidential and Proprietary
Information.  Nothing contained herein
shall prevent Employee from disclosing trade secrets or Confidential and
Proprietary Information if so directed by a court of competent jurisdiction or
to her or his legal advisors and others with a legitimate reason to know as
part of any legal proceedings or dispute concerning such Information.

5.3                                 The restriction of Paragraph 5.2
shall not apply to information that the Employee can establish, by competent
proof:  (i) was known, other than under
binder of secrecy, to the Employee prior to the Employee’s engagement by the
Company; (ii) has passed into the public domain prior to or after its
development by or for the Company other than through acts or omissions
attributable to the Employee; or (iii) was subsequently obtained other than
under binder of secrecy from a third party other than the Company or associated
companies.

5.4                                 Upon termination of the Employee’s
engagement by the Company, or at any other time upon the request of the
Company, the Employee shall forthwith deliver to the Company any and all
documents, notes, notebooks, letters, manuals, prints, drawings, block
diagrams, photocopies of documents, devices, hardware, data, databases, source
code, object code, and data or computer programming code stored on an optical
or electronic medium, relating to the Company’s business and affairs, including
all materials that are in the possession of or under the control of the
Employee and that incorporate any Confidential and Proprietary Information or
any reference thereto.

5.5                                 The Employee acknowledges that the
Company’s Confidential and Proprietary Information constitutes unique and
valuable assets of the Company, the loss or unauthorized disclosure of which
would cause the Company irreparable harm. 
Upon the breach or threatened breach by the Employee of any of the
provisions of this Section 5, the Company shall be entitled to an
injunction, without bond, restraining the Employee from committing such
breach.  This right to an injunction
shall not be construed to prohibit the Company from pursuing any other remedies
available to it at law or in equity for such breach or threatened breach,
including the recovery of damages.  In
case of any dispute hereunder, the parties will submit to the jurisdiction and
venue of any court of competent jurisdiction, including such courts in Suffolk
County, Massachusetts, and will comply with all requirements necessary to give
such court jurisdiction over the parties and the controversy.  EACH PARTY HEREBY WAIVES ANY RIGHT TO A JURY
TRIAL AND TO CLAIM OR RECOVER PUNITIVE DAMAGES.

 

 

The Employee acknowledges that the Company’s
Confidential and Proprietary Information constitutes unique and valuable assets
of the Company, the loss or unauthorized disclosure of which would cause the
Company irreparable harm.  Upon the
breach or threatened breach by the Employee of any of the provisions of this Section
5, the Company shall be entitled to an injunction, without bond,
restraining the Employee from committing such breach.  This right to an injunction shall not be
construed to prohibit the Company from pursuing any other remedies available to
it at law or in equity for such breach or threatened breach, including the
recovery of damages.  In case of any
dispute hereunder, the parties will submit to the jurisdiction and venue of any
court of competent jurisdiction, and will comply with all requirements
necessary to give such court jurisdiction over the parties and the
controversy.  EACH PARTY HEREBY WAIVES
ANY RIGHT TO A JURY TRIAL AND TO CLAIM OR RECOVER PUNITIVE DAMAGES.

Section
6.              Covenant Not to Compete

 

6.1                                 Definitions. 
As used in this Agreement, the term “Competing
Organization” means any person or organization engaged in or
with specific plans to become engaged in research on, or development,
production, marketing or selling of a Competing Product, and the term “Competing Product” means any product,
process or service of any person or organization other than the Company,
whether or not in existence, that competes or is likely to compete, directly or
indirectly, with a product, process or service that is being developed, sold or
marketed at the time the Company seeks to enforce this paragraph and upon or
with which the Employee has worked for the Company or about which the Employee
acquired Confidential and Proprietary Information by virtue of engagement with
the Company.

6.2                                 The Employee agrees and acknowledges that
in order to assure the Company that it will retain its value as a going
concern, it is necessary that the Employee undertake not to utilize the
Employee’s special knowledge of the technology and the business of the Company
and the Employee’s relationships with customers and suppliers to compete with
the Company.  Employee further
acknowledges that:

 

i.                                          The Employee occupies a position of trust
and confidence with the Company and, during Employee’s engagement under this
Agreement, the Employee will become familiar with the Company’s trade secrets
and with other Confidential and Proprietary Information;

 

ii.                                       The agreements and covenants contained in
this Section 6 are essential to protect the Company and its associated
goodwill; and

 

iii.                                    The Employee’s engagement with the
Company has special, unique and extraordinary value to the Company, and the
Company would be irreparably damaged if the Employee were to provide services
to any person or entity in violation of the provisions of this Agreement.

 

6.3                                 During the term of this Agreement and for
a period of one year thereafter, the Employee will not render services,
directly or indirectly, to any Competing Organization which is engaged in
marketing or selling of a Competing Product in the United States, except that
the Employee may accept employment with, or render services to, (i) a Competing
Organization whose business is diversified, but only to the parts of such
business which are not a Competing 

 

 

 

Organization, provided
that the Company, prior to the Employee’s accepting such employment or
rendering such services, shall receive separate written assurance satisfactory
to the Company from such Competing Organization and from the Employee that the
Employee will not render services directly or indirectly in connection with any
Competing Product or (ii) any university or academic institution so long as
such employment or engagement does not involve use or disclosure of any
Confidential and Proprietary Information or research on or development of any
Competing Product.  Nothing contained
herein shall preclude Employee from participating, directly or indirectly, as a
passive investor in the securities of any publicly-traded corporation. The
Employee agrees to disclose to every Competing Organization, by which the
Employee may subsequently be employed or engaged, the restrictions upon the
Employee’s services herein contained.

6.4                                 During the Employee’s engagement by the
Company and for a period of one year after the Employee ceases to be engaged by
the Company, the Employee shall not, directly or indirectly, solicit as
employees, partners, or in any other personal or representative capacity any
present employee of the Company for the purpose of securing business or contracts
related to the business in which Company is engaged, or competing with Company.

6.5                                 During Employee’s engagement by the
Company and for a period of one year after Employee ceases to be engaged by
Company, the Employee shall not, directly or indirectly, solicit business from,
divert business from, or attempt to convert to other methods of using the same
or similar products or services as provided by Company, any existing client,
account or location of Company at the time of any such solicitation or attempted
diversion with which the Employee has had any contact as a result of the
Employee’s engagement by Company.

 

6.6                                 If any court of competent jurisdiction
shall at any time deem the term of this Agreement or any particular restrictive
covenant too lengthy or the territory too extensive, the other provisions of
this Section 6 shall nevertheless stand, the restricted period shall be deemed
to be the longest period permissible by law under the circumstances and the
territory shall be deemed to comprise the largest territory permissible by law
under the circumstances.  The court in
each case shall reduce the restricted period and/or territory to permissible
duration or size.

 

6.7                                 The Employee will not assert any rights
under any Inventions and Other Intellectual Property, discoveries, concepts or
ideas or improvements thereof or know-how related thereto, as having been made
or acquired by the Employee prior to the Employee’s engagement by the Company
except as disclosed in writing in Exhibit A to this Agreement.  The Employee represents that the list in Exhibit
A is complete.  If there is no such
list on Exhibit A, the Employee represents that the Employee has no
rights in any such Inventions and Other Intellectual Property, discoveries,
concepts or ideas or improvements thereof or know-how related thereto.

 

Section
7.              General Provisions.

 

7.1                                 Binding Effect. 
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, personal representatives,
successors, and assigns.

 

 

 

7.2                                 Counterparts. 
This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

7.3                                 Presumption. 
This Agreement or any section thereof shall not be construed against any
party due to the fact that this Agreement or any section hereof was drafted by
such party.

 

7.4                                 Governing Law. 
This Agreement, and all transactions contemplated hereby, shall be
governed by, construed, and enforced in accordance with the laws of the
Commonwealth of Massachusetts, without reference to the conflict of laws
provisions thereof.

 

7.5                                 Severability. 
If any term, provision, clause, article, condition or other portion of
this Agreement is determined to be invalid, void, or unenforceable by a court
of competent jurisdiction, the same will be deemed amended or deleted to the
extent necessary to make it enforceable, and it will not affect any other term,
provision, clause, article, condition, or other portion hereof, and the
remainder of this Agreement will remain in full force and effect.

 

7.6                                 No Conflict. 
The Employee warrants and represents to the Company that the Employee is
not now under any obligation of a contractual or other nature to any person,
firm, corporation, or university which is inconsistent or in conflict with this
Agreement or any provision hereof, or which would prevent, limit or impair in
any way the execution of this Agreement or the performance by the Employee’s
obligations hereunder, and the Employee will indemnify and hold harmless the
Company, its directors, officers and employees against and in respect of all
liability, loss, damage, expense, or deficiency resulting from any
misrepresentation, or breach of any warranty or agreement made by Employee in
connection with Employee’s employment hereunder.

 

7.7                                 Notices.  All notices
or other communications required or permitted by this Agreement to be given or
made by one party to the other shall be made or given in writing and delivered
either in person, by overnight delivery, by certified mail or registered mail,
postage prepaid, return receipt requested or by telex or facsimile to the
Company at the address specified below, or to the Employee at the address
maintained in the Company’s records, which Employee agrees to keep up to
date.  Such notice will be effective upon
delivery or transmission in such a manner. Proof of delivery or transmission in
such a manner shall constitute proof of receipt.

 

 

	
  iBasis, Inc.

  	
   

  
	
  ATTN: Ms. Tamah Rosker

  	
   

  
	
  20 Second Avenue

  	
   

  
	
  Burlington, MA 01803

  	
   

  
	
  FAX: (781) 505-7330

  	
   

  

 

7.8                                 Survival of Obligations. 
Sections 3, 4, 5, and 6 of this Agreement, including the Employee’s
obligations to the Company regarding Confidential and Proprietary Information and
the Employee’s covenant not to compete with the Company as set for the herein,
shall survive the term and termination of this Agreement.

 

7.9                                 Entire Agreement. 
This Agreement sets forth the entire agreement of the parties hereto in
respect of the subject matter contained herein and supersedes all prior
agreements, promises, covenants, arrangements, communications, representations
or warranties, whether oral or 

 

 

 

written, by any
officer, employee or representative of any party hereto in respect of such
subject matter. Any prior agreement of the parties hereto in respect of the
subject matter contained herein is hereby terminated and canceled.

 

7.10                           Agreement Read. Understood and Fair. 
Employee has carefully read and considered all provisions of this Agreement
and agrees that all of the restrictions set forth are fair and reasonable and
are reasonably required for the protection of the interests of Company.

 

7.11                           Defense of Applicability of Agreement. 
Employee agrees to defend the applicability and validity of this
Agreement at all times and in all places.

 

7.12                           Waiver.  None of the
provisions of this Agreement shall be deemed to be waived by any act or
acquiescence on the part of the company or its agents.  No waiver of any provision of this Agreement
shall constitute a waiver of any other provision.  The failure of the Company to enforce a
provision of this Agreement shall not be deemed a waiver of that provision.

 

7.13                           Proof of Legal Authority. 
Under federal immigration laws, the Company is required to verify each
new employee’s identity and legal authority to work in the United States.  Therefore, the Employee’s employment pursuant
to this Agreement is contingent upon the Employee submitting the legally
required proof of the Employee’s identity and authorization to work in the
United States.  Not later than the
Employee’s third day of employment, the Employee will provide the required
identification.

 

7.14                           Except as provided above in Paragraph 5.5
and except for claims arising out of the Workers Compensation Act, either party
may require that all disputes or injuries arising out of the employment
relationship between the Employee and the Company, including but not limited to
claims for breach of contract; wrongful termination; age, sex, race or other unlawful
discrimination or harassment; defamation; violation of public policy; and any
dispute over the validity of, breach or rescission of this Agreement, shall be
settled by an arbitration in accordance with the commercial arbitration rules
of the American Arbitration Association before a one (1) person panel. The
English language shall be used throughout the arbitral proceeding.  The arbitration shall take place in Boston,
Massachusetts, U.S.A.  The cost of the
arbitration, including the fees and expenses of the arbitrator(s), shall be
shared equally by the Parties unless that award provides otherwise.  Any decision or order of the arbitrator shall
be binding upon the parties hereto. 
Judgment upon any award so rendered may be entered in any court having
jurisdiction.  Except as provided above
in Paragraph 5.5 above, the Employee and the Company agree that
arbitration is the sole and exclusive remedy, and each party waives the right
to a jury trial and to seek legal relief in any other forum.  This provision however, shall not prohibit
the Employee or the Company from obtaining injunctive relief pending
arbitration.

 

                I UNDERSTAND THAT
THIS AGREEMENT AFFECTS MY RIGHTS TO INVENTIONS I MAKE DURING MY EMPLOYMENT, AND
RESTRICTS MY RIGHTS TO DISCLOSE OR USE THE COMPANY’S CONFIDENTIAL INFORMATION
OR TO COMPETE WITH THE COMPANY DURING OR SUBSEQUENT TO MY EMPLOYMENT.

 

                I HAVE READ THIS
AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. 
I HAVE COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT.

 

Dated: December 19, 2005.

 

 

 

 

Signature

 

 

	
  /s/ Timothy P. Enright

  

 

 

ACCEPTED AND AGREED:

 

iBASIS, INC.

 

 

	
  By:

  	
  /s/ Tamah Rosker

  	
   

  
	
   

  	
   

  
	
  Tamah Rosker

  	
   

  
	
   

  	
    Print

  	
   

  
				

 

 

Title:Vice President — Human Resources

 

 

 

 

 

 

 

 

 

 

Version 4.2.01

 

 

 

EXHIBIT A

 

 

 

                Set forth below
are all Inventions and Other Intellectual Property, discoveries, concepts or
ideas or improvements thereof or knowhow related thereto made or acquired by
the Employee prior to the Employee’s engagement by the Company:

 

 

[Employee to complete if
applicable]

 

 

1.

 

 

2.

 

 

3.

 

 

4.

 

 

5.

 

 

6.

 

 

 

 

If
no Inventions and Other Intellectual Property, discoveries, concepts or ideas
or improvements thereof or know-how related thereto are set forth above, the
Employee represents that the Employee has no rights in any such Inventions and
Other Intellectual Property, discoveries, concepts or ideas or improvements
thereof or know-how related thereto made or acquired by the Employee prior to
the Employee’s engagement by the Company.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Employee

  	
   

  	
  Date

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