Liberate Technologies Executive Employment Letter Agreement with Stock Option Grant and Change in Control Provisions (Lockwood, Wood, Nguyen)

Summary

Liberate Technologies offers employment to David Lockwood, Gregory S. Wood, and Patrick Nguyen, initially as consultants and then as executive officers upon completion of certain public filings. The agreement sets a $250,000 annual salary, eligibility for company benefits, and a stock option grant for 1.3 million shares, vesting over 48 months. The agreement includes provisions for accelerated vesting and severance in the event of a change in control, and requires arbitration for most disputes. Employment is at-will and contingent on signing a proprietary information agreement and proof of work eligibility.

EX-10.66 5 a2117755zex-10_66.htm EX-10.66

EXHIBIT 10.66

 

SCHEDULE OF OMITTED DETAILS

 

The following schedule presents the terms omitted from the Form of Employment Letter filed as Exhibit 10.66 to the Annual Report on Form 10-K for the fiscal year ended May 31, 2003, filed by Liberate Technologies.  The following information omitted from the exhibit appears in the address line and first full paragraph of each executive officer’s Employment Letter:

 

Name:  David Lockwood

Initial Title:  Strategic Consultant

Executive Title:  Chief Executive Officer and Chairman of the Board of Directors

 

Name:  Gregory S. Wood

Initial Title:  Financial Consultant

Executive Title:  Chief Financial Officer and Executive Vice President

 

Name:  Patrick Nguyen

Initial Title:  Financial Consultant

Executive Title:  Executive Vice President — Corporate Development

 

 

 



 

 

LIBERATE

 

 

[NAME]

[ADDRESS]

 

 

Dear _____________:

 

We are pleased to offer you employment as [ INITIAL TITLE ] for Liberate Technologies, becoming [ EXECUTIVE TITLE ] upon Liberate’s submission of its delinquent public filings.  Your annual salary will be $250,000, less applicable withholding.  Your bonus will be determined by the Compensation Committee of Liberate’s Board of Directors, with timing and criteria to be mutually agreed.  Your starting date will be March 14, 2003.

 

As an employee of Liberate Technologies, you will be eligible to participate in a number of company-sponsored benefits, including health and medical benefits.  Subject to the approval of Liberate’s Board of Directors or its Compensation Committee, Liberate will grant you an option to purchase 1.3 million shares of Liberate common stock at today’s closing fair market value per share.  As a condition of your receipt of the option grant, you will confirm your investment experience, your status as an “accredited investor”, your receipt of all information you consider necessary and appropriate to make an investment decision, and any other representations appropriate under the securities laws.  The option will vest monthly in equal increments upon the completion of each of the next 48 months of service.  The option is granted outside of Liberate’s 1999 Equity Incentive Plan (the “Plan”) and its related agreements, but will be governed by the terms of the Plan, except that the Board and the Compensation Committee commit not to invoke Article 18.1(b) of the Plan, so that Article 18 will apply only if Liberate’s independent auditors (and if they are not able to perform this evaluation, another nationally recognized accounting firm selected by Liberate) determines that you would receive a greater after-tax benefit if it reduced any payment or option vesting acceleration. Liberate will file an S-8 registration statement covering the exercise of the option as soon as reasonably practical following its filing of its delinquent public filings.

 

The option will vest fully in the event of a Change in Control (as defined in the Employee Retention Agreement entered into concurrently herewith between you and Liberate) of Liberate in which the acquiring or surviving entity fails within ten days prior to the closing thereof to make a written offer to you of continued employment for a period of at least one year that is located within 20 miles of your present location and has equal or greater: (i) responsibilities, title, and reporting relationship in the surviving entity and parent; (ii) total compensation (including salary, bonus and equity incentives); and (iii) office and support arrangements, and staff.  As a condition of any such accelerated vesting, you and Liberate will sign a mutual waiver of claims (as set forth in the Employee Retention Agreement between the parties) at the time of the acceleration.  In addition, in the event of a Change in Control that is followed within one year by your Actual or Constructive Termination (as defined in the Employee Retention Agreement), Liberate will pay you an amount equal to twice the sum of your total taxable compensation received in the prior fiscal year, with a minimum of $500,000 and up to a maximum of $750,000.

 

Your employment with Liberate is not for a specific term and can be terminated by you or by Liberate at any time for any reason, with or without cause.  (We do ask employees, to the extent possible, to give us notice if they intend to resign.)  Additionally, Liberate may take any other employment action at any time for any reason.  This offer is contingent upon your executing Liberate’s Proprietary Information Agreement, and providing legally required proof of your identity and eligibility to work in the United States.

 

We make every effort to maintain a great and rewarding work environment.  If, however, a dispute arises, you and we agree to waive trial before a judge or jury and to arbitrate with the JAMS arbitration service any dispute relating to this agreement or to your recruitment, employment, or termination, except for claims relating to worker’s compensation benefits, unemployment insurance, or intellectual property rights.  The arbitrator’s decision will include written findings of fact and law and will be final and binding except to the extent that judicial review is required by law.  The American Arbitration Association’s National Rules for the Resolution of Employment

 

 

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Disputes will govern the arbitration, except that the arbitrator will allow discovery authorized by the California Arbitration Act and any additional discovery necessary to vindicate a claim or defense.  The arbitrator may award any remedy that would be available from a court of law.  You may choose to hold the arbitration either in San Mateo County, California or the county where you worked when the arbitrable dispute first arose.  You and we will share the arbitration costs equally (except that we will pay the arbitrator’s fee and any other cost unique to arbitration) and each party will pay its own attorney’s fees except as required by law.  If either of us files any legal action or proceeding about a non-arbitrable matter, it will be instituted in a state or federal court located in Santa Clara or San Mateo County, California, and we and you submit to the personal jurisdiction of, and agree that venue is proper in, these courts.

 

To confirm your acceptance of this employment agreement, please sign and date this letter in the space provided below and return it to Temre Jenkins.  A duplicate original is enclosed for your records.  This letter and the Proprietary Information Agreement set forth the terms of your employment with Liberate.  This agreement supersedes any prior representations or agreements between us, and it may be modified only by a document signed by you and by Liberate’s Chief Executive Officer.  This offer, if not accepted, will expire on March 21, 2003

 

Sincerely,

 

 

 

Liberate Technologies

By:

 

Mitchell Kertzman

 

 

Chief Executive Officer

 

I agree to and accept employment with Liberate Technologies on the terms set forth in this agreement.

 

 

 

 

 

[NAME]

 

Date: March 14, 2003

 

 

 

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