EXHIBIT 10.18
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EMPLOYMENT AGREEMENT
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This Agreement is entered into as of April 1, 1997 by and between VIALOG
Corporation, a Massachusetts corporation (the "Company") and GARY VILARDI
("Executive").
FACTS
The Company desires to employ Executive as a senior executive with the
duties, responsibilities, rights and obligations set forth below, and Executive
desires to be so employed.
In Executive's capacity as a senior executive of the Company, Executive
will obtain access to, and be in a position to adversely affect, the
confidential information and good will of VIALOG and its subsidiaries (VIALOG
and the subsidiaries collectively and each individually referred to as the
"VIALOG Group").
AGREEMENT
In consideration of the foregoing and of the covenants and agreements set
forth in this Agreement, the Company and the Executive agree as follows:
1. Term. The term of this Agreement commenced on April 1, 1997 (the
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"Effective Date"), and will continue until terminated in accordance with the
provisions of Section 6 of this Agreement (the "Term").
2. Duties and Responsibilities. The Company agrees to employ Executive,
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and Executive agrees to be employed, as Vice President of Sales, and Executive
will perform all of the duties and responsibilities of said office, subject to
direction by the Chief Executive Officer and the Board of Directors of the
Company. In addition, Executive will perform such other specific tasks and
responsibilities, consistent with Executive's position as Vice President of
Sales, as may be assigned to Executive from time to time by the Chief Executive
Officer and the Board of Directors of the Company. The Company will have the
right to reassign Executive to such other positions in the Company or within the
VIALOG Group as the Company may determine so long as such other positions
involved a substantially similar level of compensation, authority and
responsibility as the position of Vice President of Sales. Executive will
devote substantially all of Executive's business time, labor, skill and best
efforts to carrying out Executive's duties and responsibilities under this
Agreement. Executive may engage in side business activities so long as
(i) Executive does not otherwise violate any other provision of this Agreement,
and (ii) such side business activities do not interfere with Executive's ability
to carry out Executive's duties and responsibilities under this Agreement.
Executive will travel to whatever extent may be reasonably necessary in the
conduct of the VIALOG Group's business and Executive's duties and
responsibilities under this Agreement.
3. Compensation. Subject to Executive's adherence to Executive's
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responsibilities and obligations under this Agreement, the Company agrees to pay
Executive a base compensation at the annual rate of $1.00 until the Company
successfully closes the merger of a minimum of four (4) companies (the
"Mergers") and thereafter at the annual rate of $150,000 and such additional
compensation as may be mutually agreed upon from time to time by the Company and
Executive. Within ten (10) days following the closing of the Mergers (the
"Closing Date") the Executive will receive a cash bonus equal to the number of
days from the Effective Date to the Closing Date multiplied by the Executive's
"daily rate" ($ 150,000 divided by 365), less the aggregate compensation earned
by the Executive between the Effective Date and the Closing Date in connection
with the Executive's employment with American Conferencing Company. Executive
will be eligible for such increases (but not decreases) in base compensation,
and to participate in such bonus and/or incentive compensation plans, as shall
be made available from time to time to similarly situated senior executives of
the Company.
4. Benefits, Vacation and Stock Options. Executive will be eligible to
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participate in and/or receive such group retirement plans (qualified and non-
qualified), insurance plans, other fringe benefit plans and vacation as the
Company makes available to similarly situated senior executives. Executive will
be granted an incentive stock option to purchase 25,000 shares of the Company's
Common Stock, which option shall vest over three years pursuant to the
provisions of an Incentive Stock Option Agreement to be entered into between the
Company and the Executive. Executive will also receive a monthly auto allowance
of $500.00.
5. Expense Reimbursement. Executive will be entitled to reimbursement for
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business expenses incurred by Executive connection with the performance of
Executive's duties and responsibilities under this Agreement upon submission of
documentation in accordance with such procedures as the Company may establish
from time to time.
6. Termination. The Company may terminate Executive's employment at any
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time during the Term for any reason as follows:
(a) By the Company for Cause. The Company has the right to terminate
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Executive's employment immediately for "Cause". For purposes of this Agreement
only, the term "Cause" means material breach of any provision of this Agreement;
misconduct in the performance of Executive's duties or responsibilities;
nonperformance of Executive's duties or responsibilities other than by reason of
disability; conviction of, or written admission to, a felony or other crime
involving moral turpitude; imprisonment for any crime constituting a felony; any
act involving theft, embezzlement or fraud; or a material violation of any
written policy of the Company. If Executive's employment is terminated for
Cause, the Company will only be obligated to pay Executive's base compensation
through the date of such termination, together with such other benefits or
payments to which Executive may be entitled (in the event of a Cause
termination) by law or pursuant to benefit plans of the Company then in effect.
Executive will remain bound by Executive's obligations under Sections 7, 8 and 9
of this Agreement.
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(b) Disability. The Company has the right to terminate Executive's
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employment if Executive is prevented, by illness, accident, disability or any
other physical or mental condition, from substantially performing Executive's
duties and responsibilities under this Agreement for one or more periods
totaling one hundred fifty (150) days in any (12) month period. If Executive's
employment is terminated pursuant to this section, Executive will be entitled to
receive such base compensation and comparable group insurance benefits as
Executive would have received (at such times as Executive would have received
them) during a period equal to one (1) year which amount will be reduced by only
the amount actually received by Executive under any disability plans maintained
by the Company. Executive will also be entitled to receive such payments or
benefits to which Executive may be entitled by law or pursuant to benefit plans
of the Company then in effect. Executive will remain bound by Executive's
obligations under Sections 7, 8 and 9 of this Agreement.
(c) Death. If Executive dies during the Term, then the Company will
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pay to Executive's estate, designated beneficiary, or legal representative such
base compensation and comparable group insurance benefits as Executive would
have received (at such times as Executive would have received them) during a
period equal to one (1) year, together with such other benefits or payments to
which Executive may be entitled by law or pursuant to benefit plans of the
Company then in effect.
(d) Resignation and Termination by the Company Other than for Cause,
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Disability or Death. The Company and Executive each have the right to terminate
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Executive's employment upon thirty (30) days' prior written notice. Executive
will in any event remain bound by Executive's obligations under Sections 7, 8
and 9 of this Agreement. If Executive's employment is terminated by the
Executive, then the Executive will not be entitled to any severance payments.
If Executive's employment is terminated by the Company pursuant to this Section
6(d) before the Closing Date, then the Executive will not be entitled to any
severance payments. If Executive's employment is terminated by the Company
pursuant to this Section 6 (d) after the Closing Date, (i) the Executive will
receive a severance payment of one year's then current base salary, such
severance payment to be paid in twelve equal month installments commencing on
the first day of the first month following such termination; provided, however,
that for each of the last six monthly installments, the amount of such
installment shall be reduced, but not below zero, by the amount of compensation,
if any, earned by the Executive for service rendered to any third party during
such month; and (ii) to the extent permitted by law and by the terms of any
applicable insurance contract, the Company shall at its own cost and expense
continue to make available to, and to continue the Executive's participation in,
those group insurance plans and other fringe benefit plans in which the
Executive was a participant as of the date of his termination by the Company for
the period commencing on the date of such termination of employment and ending
on the earlier of (A) twelve months from the date of the termination (the
"Severance Period") or (B) such time as the Executive obtains other employment.
7. Confidentiality. Executive will not at any time, without the Company's
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prior written consent, reveal or disclose to any person outside of the VIALOG
Group, or use for Executive's own benefit or the benefit of any other person or
entity, any confidential information concerning the
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business or affairs of the VIALOG Group, or concerning the customers, clients or
employees of the VIALOG Group ("Confidential Information"). For purposes of this
Agreement, Confidential Information includes, but is not limited to, financial
information or plans; sales and marketing information or plans; business or
strategic plans; salary, bonus or other personnel information of any type;
information concerning methods of operation; proprietary systems or software;
legal or regulatory information; cost and pricing information or policies;
information concerning new or potential products or markets; models, practices,
procedures, strategies or related information; research and/or analysis; and
information concerning new or potential investors, customers, or clients.
Confidential Information does not include Confidential Information already
available to the public through no act of Executive's, nor does it include
salary, bonus or other personnel information specific to Executive.
Executive further understands and agrees that all Confidential Information,
however or whenever produced, will be the VIALOG Group's sole property, and will
not be removed by Executive (or anyone acting at Executive's direction or on
Executive's behalf) from the VIALOG Group's custody or premises without the
Company's prior written consent. Upon the termination of Executive's
employment, Executive will promptly deliver to the Company all copies of all
documents, equipment, property or materials of any type in Executive's
possession, custody or control, that belong to the VIALOG Group, and/or that
contain, in whole or in part, any Confidential Information.
8. Inventions. During the Term of this Agreement, Executive will promptly
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disclose to the Company or any successor or assign, and grant to the Company and
its successors and assigns (without any separate remuneration or compensation
other than that received by Executive in the course of employment), Executive's
entire right, title and interest in and to any and all inventions, developments,
discoveries, models, or any other intellectual property of any type or nature
whatsoever ("Intellectual Property") developed during the Term of this
Agreement, whether developed by Executive during or after business hours, or
alone or in connection with others, reasonably related to the business of the
Company, the Subsidiaries and their respective successors or assigns, determined
as such business is constituted at the time of the invention. Executive agrees,
at the Company's expense, to take all steps necessary or proper to vest title to
all such Intellectual Property in the Company, its affiliates, successors,
assigns, nominees or designees, and to cooperate fully and assist the VIALOG
Group in any litigation or other proceedings involving any such Intellectual
Property.
9. Restrictive Covenants. During the Restricted Period (defined below),
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Executive will not, directly or indirectly, for Executive's own account or for
or on behalf of any other person or entity, whether as an officer, director,
employee, partner, principal, joint venturer, consultant, investor, shareholder,
independent contractor or otherwise:
(a) engage in any business in competition with the then business of
the VIALOG Group, or in competition with any business that the VIALOG Group, to
the Executive's knowledge, actively was planning to enter at the time of the
termination of Executive's employment;
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(b) solicit or accept business in competition with the VIALOG Group
from any (i) clients of the VIALOG Group who were clients of the VIALOG Group at
the time of the termination of Executive's employment, or who were clients
during the one (1) year period preceding such termination, or (ii) any
prospective clients of the VIALOG Group who, within two (2) years prior to such
termination, had been solicited directly by Executive or where Executive
supervised or participated in such solicitation activities;
(c) hire or employ, or attempt to hire or employ, in any fashion
(whether as an employee, independent contractor or otherwise), any employee or
independent contractor of the VIALOG Group, or solicit or induce, or attempt to
solicit or induce, any of the VIALOG Group's employees, consultants, clients,
customers, vendors, suppliers, or independent contractors to terminate their
relationship with the VIALOG Group; or
(d) speak or act in any manner that is intended to, or does in fact,
damage the goodwill or the business or reputation of the VIALOG Group.
For purposes of this Agreement, the Restricted Period will be a period
beginning on the Effective Date and ending on the later of (i) two years after
the Closing Date or (ii) the first anniversary of the last day of the Severance
Period.
Executive may own not more than 5 percent of any class of securities
registered pursuant to the Securities Exchange Act of 1934, as amended, of any
corporation engaged in competition with the VIALOG Group so long as Executive
does not otherwise (i) participate in the management or operation of any such
business, or (ii) violate any other provision of this Agreement.
Executive understands and agrees that, by virtue of Executive's position
with the Company, Executive will have substantial access to and impact on the
good will, confidential information and other legitimate business interests of
the VIALOG Group, and therefore will be in a position to have a substantial
adverse impact on the VIALOG Group's business interests should Executive engage
in business in competition with the VIALOG Group. Executive acknowledges that
Executive's adherence to the restrictive covenants set forth in this Section is
an important and substantial part of the consideration that the Company is
receiving under this Agreement, and agrees that the restrictive covenants in
this Section are enforceable in all respects. Executive consents to the entry
of injunctive relief to enforce such covenants, in addition to such other relief
to which the Company may be entitled by law.
10. Specific Performance. Executive acknowledges that the VIALOG Group's
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remedy at law for breach of Sections 7, 8 and 9 of this Agreement would be
inadequate, and agrees that, for breach of such provisions, the VIALOG Group is
entitled to injunctive relief and to enforce its rights by an action for
specific performance.
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11. Choice of Law. This Agreement, and all disputes arising under or
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related to it, will be governed by the law of the Commonwealth of Massachusetts.
12. Choice of Forum. All disputes arising under or out of this Agreement
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will be brought in courts of competent jurisdiction located within the
Commonwealth of Massachusetts.
13. Assignment. This Agreement, and the rights and obligations of
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Executive and the Company, inures to the benefit of and is binding upon,
Executive, Executive's heirs and representatives, and upon the Company, the
Subsidiaries and their respective successors and assigns. This Agreement may
not be assigned by Executive. This Agreement may be assigned to any member of
the VIALOG Group.
14. Notices. All notices required by this Agreement will be in writing
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and will be deemed to have been duly delivered when delivered in person or when
mailed by certified mail, return receipt requested, or nationally recognized
next day delivery service, as follows:
(a) If to Executive, to the address which appears below Executive's
signature to this Agreement, and
(b) If to the Company, at:
Ten New England Business Center, Suite 302
Andover, MA 01810
or to such other address as a party specifies in writing given in accordance
with this Section.
15. Severability. If any one or more of the provisions of this Agreement
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is held to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be affected or
impaired. Moreover, if any one or more of the provisions contained in this
Agreement is held to be excessively broad as to duration, activity or subject,
such provision will be construed by limiting or reducing it so as to be
enforceable to the maximum extent compatible with applicable law.
16. Consultation with Counsel; No Representations. Executive acknowledges
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that Executive has had a full and complete opportunity to consult with counsel
of Executive's own choosing concerning the terms, enforceability and
implications of this Agreement, and that the Company has made no representations
or warranties to Executive concerning the terms, enforceability or implications
of this Agreement other than are as reflected in this Agreement.
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EMPLOYEE VIALOG CORPORATION
/s/ Gary Vilardi By: /s/ Glenn D. Bolduc
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Name: Name: Glenn D. Bolduc
Title: President & CEO
91 Webster Drive
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Address:
Wayne, NJ 07470
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