Employment and Non-Competition Agreement between Vsource (CI) Ltd and John Gerard Cantillon dated January 1, 2003

Summary

This agreement is between Vsource (CI) Ltd and John Gerard Cantillon, appointing him as Chief Operating Officer starting January 1, 2003. It outlines his duties, compensation, eligibility, and benefits, including salary, bonus potential, housing allowance, and expense reimbursement. The agreement specifies terms for termination, including notice periods, grounds for immediate dismissal, and severance provisions. It also includes non-competition obligations. The contract is initially for two years, automatically renewing unless either party gives 90 days' notice before the end of a term.

EX-10.20 4 dex1020.txt EMPLOYMENT AGREEMENT BY AND BETWEEN VSOURCE (CI) LTD AND JOHN GERARD CANTILLON Exhibit 10.20 --------------------------------------------------------- EMPLOYMENT AND NON-COMPETITION AGREEMENT --------------------------------------------------------- By and Between Vsource (CI) Ltd and John Gerard Cantillon Dated as of January 1/st/ , 2003 This EMPLOYMENT AND NON-COMPETITION AGREEMENT dated as of January 1st, 2003 (the "Effective Date"), by and between Vsource (CI) Ltd, a Cayman Islands company (the "Company"), and John Gerard Cantillon ("Employee"). In consideration of Employee's continued employment by the Company, the parties hereto agree as follows: 1. Employment. Subject to earlier termination in accordance with Sections contained within, this Agreement shall be an at-will agreement commencing as of the Effective Date. a. Duties. The Company agrees to employ Employee and Employee agrees to serve the Company, as its Chief Operating Officer, subject to the direction of the Board of Directors of the Company (the "Board"), and to have such authority and duties relative to the operation of the Company as may be determined by the Board. b. Term. The initial term of this Agreement shall be from the Effective Date hereof until the day that is two years after the Effective Date (the "Initial Term"). This Agreement shall renew automatically for additional one (1) year terms unless either party gives notice of termination not less than 90 days prior to the end of the existing term. c. Best Efforts. During the term of his employment under this Agreement, Employee shall devote his full business time, attention, skill, and efforts to the faithful performance of his duties hereunder, and will use his best efforts to advance the interests of the Company, the Company's parent company and any subsidiaries thereof (the "Vsource Companies"). d. Eligibility. This Agreement and the benefits contained herein are contingent upon Employee's being authorized to work and reside in the country in which the Company elects to base Employee (the "Host Country"), which may or may not be the country of incorporation of the Company. If Employee loses his authorization to work in the Host Country at any time, for any reason during the life of this Agreement, the Company will consider Employee's circumstances, but may, at its sole discretion, consider all, or any portion of this Agreement void. e. Statutory Benefits. Employee understands and agrees that the differential payments and adjustments described below as well as any other allowances or gratuities provided by the Company under this Agreement are, at the election of the Company, in substitution for the statutory benefits required under the laws of the Host Country to compensate employees who are not entitled to receive these contractual benefits. 2. Compensation. The Company shall pay to Employee, as consideration for the services to be rendered by Employee hereunder, a base salary of US$61,600 per year (the "Base Salary"), to be paid on a monthly basis in US dollars. Employee shall be eligible for a target incentive bonus ("Bonus") equal to 249.6% of the Base Salary, which shall be payable upon the achievement of performance targets to be set by the Compensation Committee of Vsource's Board of Directors (the "Compensation Committee. 3. Stock Options, Restricted Stock and Similar Types of Compensation Benefits. Stock option grants, participation in restricted stock programs or deferred compensation programs and other similar types of compensation plans will be decided by the Board of Directors of Vsource but in any event will be on generally the same terms and conditions made available to other members of senior management of the Vsource Companies. 4. Benefits. Employee shall be reimbursed US$3,000 per month for housing related costs in the Host Country. 5. Expenses. Upon presentation of proper vouchers, receipts or other proof, Employee shall be reimbursed promptly by the Company for all reasonable travel and other expenses incurred by Employee in connection with performing his employment obligations hereunder other than that covered by Clause 4 above. 6. Termination of Employment. a. By the Employee. Employee's employment may be terminated by Employee, without cause (a "Voluntary Termination") (i) during the Initial Term, at any time during the period comprised of the last 90 days of the Initial Term, and (ii) at any time after the Initial Term, in each case upon 90 days written notice to the Company. b. By the Company. Employee's employment may be terminated by the Company: i. immediately, in the event that (1) Employee is convicted or pleads guilty or nolo contendere to a felony or a crime of moral turpitude, (2) the Board determines in good faith that Employee has been grossly negligent or acted dishonestly to the material detriment of the Company, (3) Employee willfully disobeys the instructions or mandates of the Board and such disobedience continues after Employee is afforded a reasonable opportunity to cure such disobedience, or (4) the Board makes a good faith determination that Employee has engaged in actions amounting to willful misconduct or failed to perform his duties hereunder and such failure continues after Employee is afforded reasonable opportunity to cure such failure (each of (1), (2), (3) or (4), refereed to herein as a "Termination for Actual Cause"); or ii. immediately, in the event that Employee is indicted or otherwise formally charged with a felony or a crime of moral turpitude, in which case the Board may, upon three (3) days written notice, suspend Employee's employment by the Company. Thereafter, all payments of salary and bonuses, if any, to which Employee otherwise would be entitled under this Agreement shall be paid into an interest bearing escrow account. In the event that Employee shall be acquitted of such charges or such charges shall otherwise be dismissed, Employee shall be reinstated as an employee, and all salary and accrued bonuses paid into escrow, plus accrued interest, shall be paid to Employee. In the event Employee shall be convicted or pleads guilty or nolo contendere to such charges and his employment is terminated hereunder; all salary and accrued bonuses paid into escrow plus accrued interest, shall be paid over to the Company, and for purposes of this Agreement, Employee's employment shall be deemed to have terminated as of the date of his suspension. iii. the Board of Directors, in its discretion, resolves to terminate Employee's employment for any reason other than those set forth in sub-sections b(i) or b(ii) above, upon 90 days notice to Employee. c. Death of Employee. In the event of Employee's death during the term of his employment, Employee's employment pursuant to this Agreement shall be deemed to have terminated on the last day of the calendar month during which Employee's death occurred. d. Disability. In the event Employee is unable to perform his normal duties by reason of disability, then at the sole discretion of the Board, Employee's employment pursuant to this Agreement may be treated as having been terminated on the last day of the calendar month during which Employee shall have been deemed disabled. For purposes of this Section, "disability" shall mean the inability of Employee to perform his normal duties under this Agreement for a cumulative period in excess of six (6) months within any twelve (12) month period due to illness, injury, incapacity or other disability, either physical or mental. 7. Severance. a. Voluntary Termination, Termination for Actual Cause or Termination Without Cause. In the event of Voluntary Termination, Termination for Actual Cause or a termination by the Company of Employee's -2- employment without cause, the Company shall pay to Employee, in full discharge of its obligations hereunder, Base Salary through the date specified in the applicable notice as the termination date (the "Termination Date") of his employment; provided, that in the case of a Voluntary Termination, if the Company permits Employee to terminate employment on a date earlier than the Termination Date, then the Company shall only be obligated to pay Employee's Base Salary through such earlier date; and provided, further, that in the case of termination by the Company of Employee's employment without cause, the Company may, at its option, elect to pay Employee the Base Salary payable Employee through the Termination Date, and require Employee to leave the Company's offices immediately or any other time designated by the Company prior to the Termination Date. b. Death or Disability. In event Employee's employment by the Company terminates on account of Employee's death or disability, the Company shall pay to Employee (or his estate), in full discharge of its obligations hereunder, Employee's Base Salary through the Termination Date. 8. Non-Competition. Employee covenants and agrees that during the term of Employee's employment with the Company and for a period (the "Non-Compete Period") commencing on the Termination Date and ending on the date which is one (1) year from the date of the final payment by the Company to Employee pursuant to this Agreement, Employ will refrain from: (i) directly or indirectly (as a director, officer, employee, manager, consultant, independent contractor, advisor or otherwise) engaging in competition with, or owning any interest in, performing any services for, participating in or being connected with any business or organization which engages in competition with any of the Vsource Companies in the Asia-Pacific region, (ii) soliciting directly or indirectly the patronage of any person with whom Employee has had personal contact or dealings on behalf of any of the Vsource Companies during the twelve (12) month period immediately preceding the Termination Date, or (iii) directly or indirectly employing, soliciting for employment, or advising or recommending to any other person that they employ or solicit for employment, any employee of any of the Vsource Companies. In connection with the foregoing provisions of this Section 8, Employee represents that his experience, capabilities and circumstances are such that the provisions of these Sections will not prevent him from earning a livelihood and that the limitations set forth herein are reasonable and properly required for the adequate protection of the Company. 9. Confidential Information. a. Non-Disclosure. Employee agrees not to use other than for the benefit of the Vsource Companies and to keep confidential, during the term of Employee's employment with the Company and for at least two (2) years thereafter, all information about the Vsource Companies which the Vsource Companies treat as confidential, including, but not limited to, information about customers, marketing plans, marketing techniques, technical information, and possible new products or services, except that Employee will not be required to keep particular items of information confidential after those items of information become generally available to the public without a breach by Employee of Employee's obligations under this Section. Employee covenants and agrees that except in the performance of his duties hereunder, he will not, at any time, directly or indirectly, without the prior written consent of the Company, use or disclose to any person any confidential or proprietary information ("Confidential Information") obtained or developed by him while employed by the Company relating to the business of the Vsource Companies, except information which at the time (i) is available to others in the business or generally known to the public other than as a result of disclosure by him not permitted hereunder, (ii) is lawfully acquired from a third party who is not obligated to a Vsource Company to maintain such information in confidence or (iii) is used in any dispute or proceedings between the parties and/or Employee is legally compelled to disclose such information; provided, however, that prior to any such compelled disclosure, Employee will (a) assert the privileged and confidential nature of the Confidential Information against the third party seeking disclosure and (b) cooperate fully with the Company or any other Vsource Company in protecting -3- against any such disclosure and/or obtaining a protective order narrowing the scope of such disclosure and/or use of the Confidential Information. In the event that such protection against disclosure is not obtained, Employee will be entitled to disclose the Confidential Information, but only as and to the extent necessary to legally comply with such compelled disclosure. b. Disclosure to the Company. Employee shall disclose promptly to the Company all new discoveries, ideas, formulae, products, methods, processes, designs, trade secrets, copyrightable material, patentable inventions, or other useful technical information or know-how and all improvements, modifications or alterations of existing discoveries made, discovered, or developed by him, either alone or in conjunction with any other person during the term of his employment by the Company, or using the Vsource Companies' materials or facilities, which discoveries or developments are based on, derived from, or make use of any information directly related to the business disclosed to, or otherwise acquired by, Employee from any of the Vsource Companies during his employment by the Company. Employee agrees that any copyright, patent, trademark, or other proprietary rights in any such discoveries shall be the sole and exclusive property of the Company, and none of the Vsource Companies need account to Employee for any revenue or profit derived therefrom. If by operation of law or otherwise, any or all of the items set forth in this Section 9, or any component or element thereof, is considered to be the intellectual property right of Employee, Employee hereby agrees to irrevocably assign to the Company, its successor and assigns, ownership of all United States and international copyrights and all other intellectual property rights available with respect to each such element or item. Employee shall be deemed to have granted the Company an irrevocable power of attorney to execute as Employee's agent any and all documents (including copyright registrations) deemed necessary by the Company to perfect the Company's intellectual properly rights in and to each of the items set forth in this Section. c. Trade Secrets. Employee agrees, in order to effectuate the intent of the parties hereunder with respect to confidentiality of the trade secrets of the Vsource Companies, to return to the Vsource Companies forthwith upon the request of a Vsource Company or the termination of his employment or promptly thereafter, all documents, materials, photographs, memorandums, and all copies or reproductions hereof, or any property of a similar or different nature containing information relating to the business or other Confidential Information, whether such material was furnished by a Vsource Company, or otherwise. Employee further agrees to use his best efforts and to exercise utmost diligence to protect and guard and keep secret and confidential all Confidential Information that shall come into his possession by reason of his employment by the Company. d. Company Property. Employee agrees to return to the Vsource Companies forthwith upon the request of any Vsource Company or the termination of his employment or promptly thereafter, all other properly belonging to the Vsource Companies. 10. Damages. Employee acknowledges that the Company may suffer irreparable harm, which cannot readily be measured by monetary terms, if Employee breaches his obligations under Section 8 or 9, or any other section. Employee agrees and acknowledges that, in the event of any such breach, the Company shall be entitled to cancel any and all shares, and/or options or rights to purchase shares, of its or Vsource's capital stock received by the Employee and/or cancel Employees rights to receive additional compensation pursuant to Section 2, 3 or 4 as compensation for services rendered. Employee further acknowledges and agrees that the Company may obtain injunctive or other equitable relief against Employee to prevent or restrain such breach causing such harm; provided, however, that where such breach involves subject matter that is susceptible of being cured, Employee will cure such breach as promptly as practicable upon notice of such breach to Employee. Such injunctive relief shall be in addition to any other remedies the Company might have under this Agreement or at law. -4- 11. Miscellaneous. a. Notice. Any notices or other communications to Employee or to the Company under or relating to this Agreement must be in writing and will be deemed given when delivered in person or sent by facsimile transmission to the Company or Employee, as the case may be, at the Company's principal offices, or on the third day after the day on which mailed to the Company or Employee, as the case may be, by first class mail addressed to the Company or Employee at the Company's principal offices, except that after the term of this Agreement terminates, any notice or other communication to Employee will be deemed given when delivered in person or sent by facsimile transmission, or on the third day after the day on which mailed by first class mail, to Employee at an address specified by Employee to the Company in the manner provided in this Section (or, if Employee does not specify an address, at the Company's principal offices). b. No Duplication. The payments and benefits received by Employee hereunder are in addition to, and not duplicative of, payments and benefits received by Employee under Employee's employment and non-competition agreement with Vsource (Malaysia) Sdn Bhd dated as of the same date hereof (the "Malaysia Agreement"). c. Entire Agreement; Amendment. This Agreement, together with the Malaysia Agreement, represents the entire understanding of the parties with respect to the subject matter hereof and thereof, and replaces in its entirety the employment agreement dated April 4, 2001 between Employee and Vsource (Malaysia) Sdn Bhd (formerly NetCel360 Sdn Bhd), which Employee agrees is cancelled and terminated as of the Effective Date, except that Employee shall be credited hereunder with all benefits that have accrued thereunder through the Effective Date, including without limitation accrued vacation and employee stock options that have previously been granted. No termination, revocation, waiver, modification, amendment or supplement to this Agreement shall be binding unless consented to in writing by Employee and the Company. d. Governing Law. This Agreement shall be interpreted and construed in accordance with the laws of Hong Kong, without giving effect to the conflict of laws provisions thereof. e. Interpretation. As used in this Agreement, the masculine gender shall include the feminine or neuter gender and the plural shall include the singular wherever appropriate. The titles of the paragraphs and sections have been inserted as a matter of convenience of reference only and shall not control or affect the meaning or construction of any of the terms or provisions hereof. Nothing herein shall be construed against or more favorably toward any party by reason of any party having drafted this Agreement or any portion hereof. f. Severability. Any provision of this Agreement that is invalid, illegal or unenforceable in any jurisdiction shall be automatically reformed and construed so as to be valid, operative and enforceable to the maximum extent permitted by law, or if no reformation is permissible, shall be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating or rendering unenforceable the remaining provisions of this Agreement, and any such invalidity, illegality or unenforceability shall not, of itself, affect the validity, legality or enforceability of such provision in any other jurisdiction. g. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. h. No Waiver. No failure or delay on the part of either party is exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude any other right or power. 12. Data Privacy Consent. Employee authorizes and consents to the transfer by the Company of various personnel and employment data concerning and relating to Employee (via electronic mail or fax) to the Vsource Companies or third parties assisting the Company in implementation, administration and management of employee programmes. -5- IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written. VSOURCE (CI) LTD By: /s/ ----------------------------- Name: Title: By: /s/ ----------------------------- John Gerard Cantillon Nationality: Republic of Ireland -6-