Document:

Exhibit 10.13

 

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

 

This Non-Competition and Non-Solicitation Agreement (the “Agreement”)  is being executed and delivered as of April 17, 2012 by Sanjay Dholakia (“Stockholder”)  in favor and for the benefit of Marketo, Inc, a Delaware corporation (“Acquiror”).  All capitalized terms used but not defined herein shall have the respective meanings ascribed thereto in the Merger Agreement (as defined below).

 

RECITALS

 

WHEREAS, concurrently with the execution of this Agreement, Acquiror, Crystal Acquisition Corporation, a Delaware corporation (“Merger Sub”)  and wholly owned subsidiary of Acquiror, Crowd Factory, Inc., a Delaware corporation (the “Company”)  and Sanjay Dholakia, acting on behalf of the principal stockholders of Crowd Factory, Inc. (“Stockholders Agent”),  have entered into an Agreement and Plan of Reorganization, dated as of April 17, 2012 (the “Merger Agreement”),  pursuant to which Merger Sub shall be merged with and into the Company, the separate corporate existence of Merger Sub shall cease, and the Company shall continue as the surviving corporation (the “Surviving Corporation”)  and as a wholly owned subsidiary of Acquiror (“Merger”);

 

WHEREAS, Stockholder has a substantial interest in the Company as the holder of a significant number of shares of the Company’s capital stock, and, as a result of the Merger, Stockholder shall receive significant consideration in connection with the Merger;

 

WHEREAS, Acquiror and Stockholder mutually desire that the entire goodwill of the Company be transferred to Acquiror as part of the Merger and acknowledge that Acquiror’s failure to receive the entire goodwill contemplated by the Merger would have the effect of reducing the value of the Company to Acquiror.

 

WHEREAS, as a condition and mutual inducement to the Merger, and to preserve the value and goodwill of the business being acquired by Acquiror after the Merger and to protect the trade secrets of the Company acquired by Acquiror, the Merger Agreement contemplates, among other things, that Stockholder shall enter into this Agreement and that this Agreement shall become effective at the Effective Time.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises made herein, Acquiror and Stockholder hereby agree as follows:

 

1.             Effective Date.  This Agreement shall be effective as of the Effective Time.  This Agreement shall be null and void if the Merger is not consummated as substantially contemplated in the Merger Agreement.

 

 

2.             Noncompetition.  During the period commencing on the Closing Date and ending on the 24-month anniversary of the Closing Date (the “Non-Competition Period”),  Stockholder shall not (other than in connection with any employment services to Acquiror, Surviving Corporation or any subsidiary thereof or their respective successors or assigns), without the prior written consent of Acquiror, directly or indirectly:

 

(a)           engage in Competition (as defined below) anywhere in the Restricted Territory (as defined below);

 

(b)           be or become an officer, director, stockholder, owner, affiliate, salesperson, co-owner, partner, trustee, promoter, technician, engineer, analyst, employee, agent, representative, supplier, contractor, consultant, advisor or manager of, or to otherwise acquire or hold any interest in, or participate in or facilitate the financing, operation, management or control of any firm, partnership, corporation, person, entity or business that engages or participates in Competition in the Restricted Territory;

 

provided, however that nothing in this Agreement shall prevent or restrict Stockholder from any of the following: (i) owning as a passive investment less than 1% of the outstanding shares of the capital stock (or equity interests) of a corporation (whether public or private) that is engaged in Competition and Stockholder is not otherwise associated with such corporation; (ii) performing speaking engagements and receiving honoraria in connection with such engagements; (iii) being employed by any government agency, college, university or other non-profit research organization; (iv) owning a passive equity interest in a private or public debt or equity investment fund (including without limitation hedge and mutual funds) in which the Stockholder does not have the ability to control or exercise any managerial influence over such fund; or (v) any activity consented to in writing by Acquiror.

 

“Competition”  means engaging in any business (including research and development), operations, activities and/or services that are related in any way to the design, development, manufacture, promotion, sale, supply, distribution, resale, installation, support, maintenance, licensing or sublicensing of any Competing Product; or to providing, performing or offering any Competing Service.

 

“Competing Product”  means (i) any product, equipment, device, tool, solution or system that has been or is currently being actively planned, designed, developed, promoted, sold, distributed, resold, installed, supported, maintained, licensed or sublicensed by or on behalf of the Company (or any predecessor of the Company) within six months prior to the Closing, including any new or future versions, updates, upgrades, integrations, applications, or successor applications to any of the foregoing actively planned within six months prior to the Closing; or (ii) any product, equipment, device, tool, solution or system that is substantially the same as, incorporates, is a material component or part of, is based upon, is functionally similar to or replaces or competes in any material respect with any product, equipment, device, tool, solution or system of the type referred to in clause “(i)” of this sentence.

 

“Competing Service”  means any design, development, modification, marketing, maintenance, support, training, consulting or other similar service relating to any Competing Product

 

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that has been developed, provided, performed or offered by or on behalf of the Company (or any predecessor of the Company) within six months prior to the Closing.

 

“Restricted Territory”  means each and every country, province, state, city, or other political subdivision of the world in which the Company, Surviving Corporation or any of their respective subsidiaries or affiliates is currently engaged, or currently plans to engage.

 

3.             Nonsolicitation.  Stockholder further agrees that Stockholder shall not during the period commencing on the Closing Date and ending on the 24-month anniversary of the Closing Date (the “Non-Solicitation Period”),  directly or indirectly, without the prior written consent of Acquiror:

 

(a)           personally or through others, induce, attempt to induce, solicit or attempt to solicit any employee of Surviving Corporation, or any subsidiary of Surviving Corporation, to engage in any activity in which Stockholder would be prohibited from engaging;

 

(b)           personally or through others, in connection with pursuing activities in Competition: (i) induce or attempt to induce any client, customer or business prospect of the Company or the Surviving Corporation to terminate its relationship(s) with the Surviving Corporation or Acquiror; or (ii) otherwise take any action relating to said client or customer that would interfere with the business of the Surviving Corporation.

 

Notwithstanding the foregoing, for purposes of this Agreement, the placement of general advertisements that may be targeted to a particular geographic or technical area but that are not specifically targeted toward employees of Surviving Corporation or any subsidiary of Surviving Corporation or their respective successors or assigns, shall not be deemed to be a breach of this Section 3.

 

4.             Severability of Covenants.  The covenants contained in Sections 2 and 3 hereof shall be construed as a series of separate covenants, one for each country, province, state, city or other political subdivision of the Restricted Territory.  Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in Sections 2 and 3 hereof.  If, in any judicial proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then Acquiror, Surviving Corporation and Stockholder agree that such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced.  In the event that the provisions of Section 2 or Section 3 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then Acquiror, Surviving Corporation and Stockholder agree that such provisions shall be reformed to the maximum time, geographic or scope, limitations, as the case may be, permitted by applicable law.

 

5.             Independence of Obligations.  The covenants and obligations of Stockholder set forth in this Agreement shall be construed as independent of any other agreement or arrangement between Stockholder, on the one hand, and Acquiror, Surviving Corporation or any subsidiary of Acquiror or Surviving Corporation, on the other.

 

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6.             Stockholder Acknowledgement.  Stockholder acknowledges that (i) Stockholder has a substantial interest in the Company, is an officer, substantial Stockholder, key employee and a key member of the management of the Company; (ii) the goodwill associated with the existing business, customers and assets of the Company prior to the Merger is an integral component of the value of the Company to Acquiror and is reflected in the consideration payable to Stockholder in connection with the Merger, and (iii) Stockholder’s agreement as set forth herein is necessary to preserve the value of the Company for Acquiror following the Merger.  Stockholder also acknowledges that the limitations of time, geography and scope of activity agreed to in this Agreement are reasonable because, among other things: (A) the Company and Acquiror are engaged in a highly competitive industry, (B) Stockholder has had unique access to the trade secrets and know-how of the Company, including, without limitation, the plans and strategy (and, in particular, the competitive strategy) of the Company, and (C) Stockholder believes that this Agreement provides no more protection than is reasonably necessary to protect Acquiror’s legitimate interest in the goodwill of the Company and its trade secrets.

 

7.             Injunctive Relief.  The remedy at law for any breach of this Agreement is and will be inadequate, and in the event of a breach or threatened breach by Stockholder of this Agreement, Acquiror, shall be entitled to an injunction restraining Stockholder from breaching or otherwise violating any provision of this Agreement.  Nothing herein contained shall be construed as prohibiting Acquiror from pursuing any other remedies available to it for such breach or threatened breach, including, without limitation, the recovery of damages from Stockholder.

 

8.             Non-Exclusivity.  The rights and remedies of Acquiror hereunder are not exclusive of or limited by any other rights or remedies that Acquiror hereunder may have, whether at law, in equity, by contract or otherwise, all of which shall be cumulative (and not alternative).  Without limiting the generality of the foregoing, the rights and remedies of Acquiror hereunder, and the obligations and liabilities of Stockholder hereunder, are in addition to their respective rights, remedies, obligations and liabilities under the law of unfair competition, misappropriation of trade secrets and the like.  This Agreement does not limit Stockholder’s obligations or the rights of Acquiror (or any affiliate of Acquiror) under the terms of any other agreement between Stockholder and Acquiror or any affiliate of Acquiror.

 

9.             Notices.  All notices and other communications pursuant to this Agreement shall be in writing and deemed to be sufficient if contained in a written instrument and shall be deemed given if delivered personally, telecopied, sent by nationally-recognized overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the respective parties at the following address:

 

(a)           if to Acquiror or Merger Sub, to:

 

Marketo, Inc.

                                      

                                      

Attention: Sharon Zezima

Telephone No.: 650.539.3747

Facsimile No.:

 

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with a copy (which shall not constitute notice) to:

 

Goodwin Procter LLP

135 Commonwealth Drive

Menlo Park, CA 94025

Attention: Anthony McCusker, Esq.

Fax: 650.853.1038

Tel: 650.752.3100

email:

 

(b)                                 if to Stockholder, to the address for notice set forth on Stockholder’s signature page hereto, with a copy (which shall not constitute notice) to:

 

Fenwick & West, LLP

801 California Street

Mountain View, CA 94041

Attention:

Telephone No.:

Facsimile No.:

 

or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall only be effective upon receipt.

 

10.          Severability.  If any provision of this Agreement or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction and (c) such invalidity of enforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this Agreement.

 

11.          Governing Law.  This Agreement shall be construed in accordance with, and governed in all respects by, the laws of the State of California, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

12.          Attorneys’ Fees.  Should any litigation, arbitration or other proceeding be commenced between the parties concerning this Agreement (including, without limitation, the enforcement hereof and the rights and duties of the parties hereunder), the party prevailing shall be entitled, in addition to such other relief as may be granted, such party’s attorneys’ fees and expenses in connection with such litigation, arbitration or other proceeding.

 

13.          Waiver.  No failure on the part of any party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any party in exercising any power, right,

 

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privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy.  No party shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of the waiving party; and any such waiver shall not be applicable or have any effect except in the specific instance in which it is given.

 

14.          Captions.  The captions contained in this Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

15.          Entire Agreement.  This Agreement, and the other agreements referred to herein, set forth the entire understanding of Stockholder and Acquiror relating to the subject matter hereof and supersedes all prior agreements and understandings between any of such parties relating to the subject matter hereof.  Stockholder understands and agrees that he has had an opportunity to seek his own counsel in his review of this Agreement.  Stockholder further understands and agrees that Goodwin Procter LLC has acted as counsel to Acquiror in negotiating this Agreement and that Fenwick & West, LLP has acted as counsel to the Company during the negotiations of this Agreement.

 

16.          Amendments.  This Agreement may not be amended, modified, altered, or supplemented other than by means of a written instrument duly executed and delivered on behalf of Acquiror and Stockholder.

 

17.          Assignment.  This Agreement and all obligations hereunder are personal to Stockholder and may not be transferred or assigned by Stockholder at any time.  Acquiror may not assign or transfer its rights under this Agreement, including to any entity in connection with any merger or sale or transfer of all or substantially all of Acquiror’s assets.

 

18.          Binding Nature.  Subject to Section 17, this Agreement will be binding upon Stockholder and Stockholder’s representatives, executors, administrators, estate, heirs, successors and assigns, and will inure to the benefit of Acquiror and its successors and assigns.

 

19.          Counterpart Execution.  This Agreement may be executed by facsimile and in counterparts, each of which shall be deemed an original and all of which when taken together shall constitute but one and the same instrument.

 

[remainder of page intentionally left blank]

 

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In witness whereof, the undersigned have executed this Agreement as of the date first above written.

 

 

	
“STOCKHOLDER”
    	
By:
    	
/s/ Sanjay Dholakia
    
	
 
    	
Print Name:
    	
Sanjay Dholakia
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Telephone:
    	
 
    
	
 
    	
Fax:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
“ACQUIROR”
    	
MARKETO, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Phil   Fernandez
    
	
 
    	
Phil FernandezExhibit 10.14

 

January 13, 2012

 

Jason Holmes

 

Dear Jason:

 

Marketo, Inc. (the “Company”) is pleased to offer you employment on the following terms:

 

1.              Position.  Your initial title will be Senior Vice President of Services, and you will initially report to Phil Fernandez.  This is a full-time position.  While you render services to the Company, you will not engage in any other employment, consulting or other business activity (whether full-time or part-time) that would create a conflict of interest with the Company.  By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.

 

Your work location will be based in Illinois.  You agree to create a work environment that provides satisfactory security for Marketo confidential information.

 

2.              Cash Compensation.  The Company will pay you a starting salary at the rate of $250,000 per year, payable in accordance with the Company’s standard payroll schedule. This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time.

 

Base + Complex MBO & Company Performance: In addition, you will be eligible for an incentive compensation package based on MBOs, customer acquisition and company bookings targets, details of which will be established.  Your total eligible on-target incentive compensation for the first calendar year of your employment will be $200,000.

 

3.              Employee Benefits.  As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits.  These benefits are described in the Company’s employee benefit summary.  In addition, you will be entitled to paid vacation in accordance with the Company’s vacation policy, as in effect from time to time.

 

4.              Stock Options.  Subject to the approval of the Company’s Board of Directors or its Compensation Committee, you will be granted an option to purchase 475,000 shares of the Company’s Common Stock.  The exercise price per share will be determined by the Board of Directors or the Compensation Committee when the option is granted.  The option will be subject to the terms and conditions applicable to options granted under the Company’s 2006 Stock Plan (the “Plan”) as described in the Plan and the applicable stock option agreement.  The option will be immediately exercisable, but the unvested portion of the purchased shares will be subject to repurchase by the Company at the exercise price in the event that your service terminates for any reason before you vest in the shares.  You will vest in 25% of the option shares after 12 months of continuous service, and the balance will vest in equal monthly installments over the next 36 months of continuous service, as described in the applicable stock option agreement.

 

As a Vice President of the company, you will participate in the company’s Executive Officer Change in Control Acceleration Policy.

 

5.              Proprietary Information and inventions Agreement.  Like all Company employees, you will be required, as a condition of your employment with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement a copy of which is attached hereto.

 

 

6.              Employment Relationship.  Employment with the Company is for no specific period of time.  Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause.  Any contrary representations that may have been made to you are superseded by this letter agreement.  This is the full and complete agreement between you and the Company on this term.  Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer (other than you) of the Company.

 

7.              Taxes.  All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.  You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board of Directors related to tax liabilities arising from your compensation.

 

8.              Interpretation, Amendment and Enforcement.  This letter agreement and Exhibit A constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company.  This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company.  The terms of this letter agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this letter agreement or arising out of, related to, or in any way connected with, this letter agreement, your employment with the Company or any other relationship between you and the Company (the “Disputes”) will be governed by California law, excluding laws relating to conflicts or choice of law.  You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in San Mateo County in connection with any Dispute or any claim related to any Dispute.

 

* * * * *

 

We hope that you will accept our offer to join the Company.  You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Proprietary Information and Inventions Agreement and returning them to me.  This offer, if not accepted, will expire at the close of business on January 16, 2012.  As required by law, your employment with the Company is contingent upon your providing legal proof of your identity and authorization to work in the United States.  Your offer is further conditioned upon acceptable reference and background checks.  Your employment is also contingent upon your starting work with the Company no later than February 13, 2012.

 

Jason, we’re very excited to have you join our team at Marketo.  If you have any questions, please call me at 650 387 8459.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
/s/   Phillip M. Fernandez
    
	
 
    	
 
    
	
 
    	
Phillip   M. Fernandez
    
	
 
    	
President &   CEO
    
	
 
    	
Marketo, Inc.
    

 

 

	
I   have read and accept this employment offer:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Jason Holmes
    	
 
    	
 
    
	
Signature   of Jason Holmes
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
   1/16/2012
    	
 
    	
 
    
				

 

 

Attachments

 

Exhibit A: Proprietary Information and Inventions Agreement

 

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

The following confirms and memorializes an agreement that Marketo, Inc., a Delaware corporation (the “Company”), and I (Jason Holmes) have had since the commencement of my employment with the Company in any capacity and that is and has been a material part of the consideration for my employment by Company:

 

1.             I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict with this Agreement or my employment with Company.  I will not violate any agreement with or rights of any third party or, except as expressly authorized by Company in writing hereafter, use or disclose my own or any third party’s confidential information or intellectual property when acting within the scope of my employment or otherwise on behalf of Company.  Further, I have not retained anything, containing any confidential information of a prior employer or other third party, whether or not created by me.

 

2.             Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights, sui generis database rights and all other intellectual and industrial property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designs, know-how, ideas and information made or conceived or reduced to practice, in whole or in part, by me during the term of my employment with Company to and only to the fullest extent allowed by California Labor Code Section 2870 (which is attached as Appendix A) (collectively “Inventions”) and I will promptly disclose all Inventions to Company.  I will also disclose anything I believe is excluded by Section 2870 so that the Company can make an independent assessment.  I hereby make all assignments necessary to accomplish the foregoing.  I shall further assist Company, at Company’s expense, to further evidence, record and perfect such assignments, and to perfect, obtain, maintain, enforce, and defend any rights specified to be so owned or assigned.  I hereby irrevocably designate and appoint Company as my agent and attorney-in-fact, coupled with an interest and with full power of substitution, to act for and in my behalf to execute and file any document and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me.  If I wish to clarify that something created by me prior to my employment that relates to Company’s actual or proposed business is not within the scope of the foregoing assignment, I have listed it on Appendix B in a manner that does not violate any third party rights. Without limiting Section 1 or Company’s other rights and remedies, if, when acting within the scope of my employment or otherwise on behalf of Company, I use or (except pursuant to this Section 2) disclose my own or any third party’s confidential information or intellectual property (or if any Invention cannot be fully made, used, reproduced, distributed and otherwise exploited without using or violating the foregoing), Company will have and I hereby grant Company a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such confidential information and intellectual property rights.

 

3.             To the extent allowed by law, paragraph 2 includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively “Moral Rights”).  To the extent I retain any such Moral Rights under applicable law, I hereby ratify and consent to any action that may be taken with respect to such Moral Rights by or authorized by Company and agree not to assert any Moral Rights with respect thereto.  I will confirm any such ratifications, consents and agreements from time to time as requested by Company.

 

 

4.             I agree that all Inventions and all other business, technical and financial information (including, without limitation, the identity of and information relating to customers or employees) I develop, learn or obtain during the term of my employment that relate to Company or the business or demonstrably anticipated business of Company or that are received by or for Company in confidence, constitute “Proprietary Information.”  I will hold in confidence and not disclose or, except within the scope of my employment, use any Proprietary Information.  However, I shall not be obligated under this paragraph with respect to information I can document is or becomes readily publicly available without restriction through no fault of mine.  Upon termination of my employment, I will promptly return to Company all items containing or embodying Proprietary Information (including all copies), except that I may keep my personal copies of (i) my compensation records, (ii) materials distributed to shareholders generally and (iii) this Agreement.  I also recognize and agree that I have no expectation of privacy with respect to Company’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages) and that my activity and any files or messages on or using any of those systems may be monitored at any time without notice.

 

5.             Until one year after the term of my employment, I will not encourage or solicit any employee or consultant of Company to leave Company for any reason (except for the bona fide firing of Company personnel within the scope of my employment).

 

6.             I agree that during the term of my employment with Company (whether or not during business hours), I will not engage in any activity that is in any way competitive with the business or demonstrably anticipated business of Company, and I will not assist any other person or organization in competing or in preparing to compete with any business or demonstrably anticipated business of Company.

 

7.             I agree that this Agreement is not an employment contract for any particular term and that I have the right to resign and Company has the right to terminate my employment at will, at any time, for any or no reason, with or without cause.  In addition, this Agreement does not purport to set forth all of the terms and conditions of my employment, and, as an employee of Company, I have obligations to Company which are not set forth in this Agreement.  However, the terms of this Agreement govern over any inconsistent terms and can only be changed by a subsequent written agreement signed by the President of Company.

 

8.             I agree that my obligations under paragraphs 2, 3, 4 and 5 of this Agreement shall continue in effect after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and that Company is entitled to communicate my obligations under this Agreement to any future employer or potential employer of mine.  My obligations under paragraphs 2, 3 and 4 also shall be binding upon my heirs, executors, assigns, and administrators and shall inure to the benefit of Company, its subsidiaries, successors and assigns.

 

9.             Any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California without regard to the conflict of laws provisions thereof.  I further agree that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable California law, such illegal or unenforceable portion(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms.  This Agreement is fully assignable and transferable by Company, but any purported assignment or transfer by me is void.  I also understand that any breach of this Agreement will cause irreparable harm to Company for which damages

 

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would not be a adequate remedy, and, therefore, Company will be entitled to injunctive relief with respect thereto in addition to any other remedies and without any requirement to post bond.

 

I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION.  NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT.  I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAT THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY ME.

 

 

	
January 16,   2012
    	
Employee
    
	
 
    	
 
    
	
 
    	
/s/ Jason Holmes
    
	
 
    	
Signature
    
	
 
    	
 
    
	
 
    	
Jason Holmes
    
	
 
    	
Name   (Printed)
    

 

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APPENDIX A

 

California Labor Code Section 2870.  Application of provision providing that employee shall assign or offer to assign rights in invention to employer.

 

(a)           Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

 

(1)           Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or

 

(2)           Result from any work performed by the employee for his employer.

 

(b)           To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

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