AGREEMENT RELATING TO EMPLOYMENT AND by ARAMARK CORP
Submitted by system on Wed, 05/16/2012 - 11:50am
Company: ARAMARK CORP
SEC CIK: 7032
SEC Type: EX-10.5
SIC Code: 5812
SIC Industry: RETAIL-EATING PLACES
Date Filed: 2012-05-09
Date Filed:
05/09/2012 SKU: RDUZ7D-C-18B-6
Text View
Exhibit 10.5
ARAMARK CORPORATION
AGREEMENT RELATING TO EMPLOYMENT AND
POST-EMPLOYMENT COMPETITION
This Agreement is between the undersigned individual ("Employee") and ARAMARK CORPORATION
("ARAMARK").
RECITALS
WHEREAS, ARAMARK is a leading provider of managed services to business and industry, private and
public institutions, and the general public, in the following business groups: food and support
services and uniform and career apparel;
WHEREAS, ARAMARK has a proprietary interest in its business and financial plans and systems,
methods of operation and other secret and confidential information, knowledge and data
("Proprietary Information") which includes, but is not limited to, all confidential, proprietary or
non-public information, ideas and concepts; annual and strategic business plans; financial plans,
reports and systems including, profit and loss statements, sales, accounting forms and procedures
and other information regarding costs, pricing and the financial condition of ARAMARK and its
business segments and groups; management development reviews, including information regarding the
capabilities and experience of ARAMARK employees; intellectual property, including patents,
inventions, discoveries, research and development, compounds, recipes, formulae, reports,
protocols, computer software and databases; information regarding ARAMARK's relationships with its
clients, customers, and suppliers and prospective clients, partners, customers and suppliers;
policy and procedure manuals, information regarding materials and documents in any form or medium
(including oral, written, tangible, intangible, or electronic) concerning any of the above, or any
past, current or future business activities of ARAMARK that is not publicly available;
compensation, recruiting and training, and human resource policies and procedures; and data
compilations, research, reports, structures, compounds, techniques, methods, processes,
know-how;
WHEREAS, all such Proprietary Information is developed at great expense to ARAMARK and is
considered by ARAMARK to be confidential trade secrets;
WHEREAS, Employee, as a senior manager, will have access to ARAMARK's Proprietary Information,
directly in the course of Employee's employment, and indirectly through interaction with and
presentations by other ARAMARK senior managers at the Executive Leadership Institute, Executive
Leadership Council meetings, Management Committee meetings, Executive Committee meetings,
Presidents' Council meetings and the like;
WHEREAS, ARAMARK will introduce Employee to ARAMARK clients, customers, suppliers and others, and
will encourage, and provide resources for, Employee to develop personal relationships with
ARAMARK's clients, customers, suppliers and others;
WHEREAS, ARAMARK will provide specialized training and skills to Employee in connection with the
performance of Employee's duties at ARAMARK which training involves the disclosure by ARAMARK to
Employee of Proprietary Information;
WHEREAS, ARAMARK will be vulnerable to unfair post-employment competition by Employee because
Employee will have access to and knowledge of ARAMARK's Proprietary Information, will have a
personal relationship with ARAMARK's clients, customers, suppliers and others, and will generate
good will which Employee acknowledges belongs to ARAMARK;
NOW, THEREFORE, in consideration of Employee's
employment with ARAMARK, the opportunity to receive the grant of options to purchase common stock
of ARAMARK Holdings Corporation ("Holdings"), severance and other post-employment benefits provided
for herein (including pursuant to Exhibit A hereto to which Employee acknowledges he or she is not
otherwise entitled), and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Employee agrees to enter into this Agreement with ARAMARK as a
condition of employment pursuant to which ARAMARK will limit Employee's right to compete against
ARAMARK and right to solicit ARAMARK's employees, customers, clients or suppliers during and
following termination of employment on the terms set forth in this Agreement. Intending to be
legally bound, the parties agree as follows:
ARTICLE 1.
NON-DISCLOSURE AND NON-DISPARAGEMENT: Employee shall not, during or after termination of
employment, directly or indirectly, in any manner utilize or disclose to any person, firm,
corporation, association or other entity, except where required by law, any Proprietary Information
which is not generally known to the public, or has not otherwise been disclosed or recognized as
standard practice in the industries in which ARAMARK is engaged. Employee shall, during and after
termination of employment, refrain from making any statements or comments of a defamatory or
disparaging nature to any third party regarding ARAMARK, or any of ARAMARK's officers, directors,
personnel, other service providers, policies or products or services, other than to comply with
law.
ARTICLE 2.
NON-COMPETITION:
A. Subject to Article 2. B. below, Employee, during Employee's period of
employment with ARAMARK, and for a period of two years following the voluntary or involuntary
termination of employment, shall not, without ARAMARK's written permission, which shall be granted
or denied in ARAMARK's sole discretion, directly or indirectly, associate with (including, but not
limited to, association as a sole proprietor, owner, employer, partner, principal, investor, joint
venturer, shareholder, associate, employee, member, consultant, contractor or otherwise), or
acquire or maintain ownership interest in, any Business which is competitive with that conducted by
or developed for later implementation by ARAMARK at any time during the term of Employee's
employment. For purposes of this Agreement, "Business" shall be defined as a person, corporation,
firm, LLC, partnership, joint venture or other entity. Nothing in the foregoing shall prevent
Employee from investing in a competitive Business that is or becomes publicly traded, if Employee's
ownership is as a passive investor of less than 1% of the outstanding publicly traded stock of the
Business.
B. The provision set forth in Article 2.A above, shall apply to the full
extent permitted by law (i) in all fifty states, and (ii) each foreign country,
possession or territory in which ARAMARK may be engaged in, or have plans to engage in, business
(x) during Employee's period of employment, or (y) in the case of a termination of
employment, as of the effective date of such termination or at any time during the twenty-four
month period prior thereto.
C. Employee acknowledges that these restrictions are reasonable and
necessary to protect the business interests of ARAMARK, and that enforcement of the provisions set
forth in this Article 2 will not unnecessarily or unreasonably impair Employee's ability to obtain
other employment following the termination (voluntary or involuntary) of Employee's employment with
ARAMARK. Further, Employee acknowledges that the provisions set forth in this Article 2 shall apply
if Employee's employment is involuntarily terminated by ARAMARK for Cause; as a result of the
elimination of employee's position; for performance-related issues; or for any other reason or no
reason at all.
ARTICLE 3.
NON-SOLICITATION:
During the period of Employee's employment with
ARAMARK and for a period of two years following the termination of Employee's employment,
regardless of the reason for termination, Employee shall not, directly or indirectly, except in the
performance of his duties to ARAMARK: (i) induce or encourage any employee of ARAMARK to leave
the employ of ARAMARK, (ii) hire any individual who was an employee of ARAMARK as of the date
of Employee's termination of employment or within a six month period prior to such date, or
(iii) induce or encourage any customer, client, supplier or other business relation of ARAMARK
to cease or reduce doing business with ARAMARK or in any way interfere with the relationship
between any such customer, client, supplier or other business relation and ARAMARK.
ARTICLE 4.
DISCOVERIES AND WORKS: Employee hereby irrevocably assigns, transfers, and conveys
to ARAMARK to the maximum extent permitted by applicable law Employee's right, title and interest
now or hereinafter acquired, in and to all Discoveries and Works (as defined below) created,
invented, designed, developed, improved or contributed to by Employee, either alone or jointly with
others, while employed by ARAMARK and within the scope of Employee's employment and/or with the use
of ARAMARK's resources. The terms "Discoveries and Works" include all works of authorship,
inventions, intellectual property, materials, documents, or other work product (including, without
limitation, Proprietary Information, patents and patent applications, patentable inventions,
research, reports, software, code, databases, systems, applications, presentations, textual works,
graphics and audiovisual materials). Employee shall have the burden of proving that any materials
or works created, invented, designed, developed, contributed to or improved by Employee that are
implicated by or relevant to employment by ARAMARK are not implicated by this provision. Employee
agrees to (i) keep accurate records and promptly notify, make full disclosure to, and execute
and deliver any documents and to take any further actions requested by ARAMARK to assist it in
validating, effectuating, maintaining, protecting, enforcing, perfecting, recording, patenting or
registering any of its rights hereunder, and (ii) renounce any and all claims, including,
without limitation, claims of ownership and royalty, with respect to all Discoveries and Works and
all other property owned or licensed by ARAMARK. Any Discoveries and Works that, within six months
after the
termination of Employee's employment with ARAMARK, are made, disclosed, reduced to a tangible or
written form or description, or are reduced to practice by Employee and which pertain to the
business carried on or products or services being sold or developed by ARAMARK at the time of such
termination shall, as between Employee and ARAMARK, be presumed to have been made during such
employment with ARAMARK. Employee acknowledges that, to the fullest extent permitted by law, all
Discoveries and Works shall be deemed "works made for hire" under the Copyright Act of 1976, as
amended, 17 U.S.C. Section 101. Employee hereby grants ARAMARK a perpetual, nonexclusive,
royalty-free, worldwide, assignable, sub licensable license under all rights and intellectual
property rights (including patent, industrial property, copyright, trademark, trade secret, unfair
competition and related laws) in any Works and Discoveries, for all purposes in connection with
ARAMARK's current and future business, that Employee has created, invented, designed, developed,
improved or contributed to prior to Employee's employment with ARAMARK that are relevant to or
implicated by such employment ("Prior Works"). Any Prior Works are disclosed by Employee in
Schedule 1.
ARTICLE 5.
REMEDIES: Employee acknowledges that in the event of any
violation by Employee of the provisions set forth in Articles 1, 2, 3 or 4 above, ARAMARK will
sustain serious, irreparable and substantial harm to its business, the extent of which will be
difficult to determine and impossible to fully remedy by an action at law for money damages.
Accordingly, Employee agrees that, in the event of such violation or threatened violation by
Employee, ARAMARK shall be entitled to an injunction before trial before any court of competent
jurisdiction as a matter of course upon the posting of not more than a nominal bond, in addition to
all such other legal and equitable remedies as may be available to ARAMARK. If ARAMARK is required
to enforce the provisions set forth in Articles 2 and 3 above by seeking an injunction, Employee
agrees that the relevant time periods set forth in Articles 2 and 3 shall commence with the entry
of the injunction. Employee further agrees that, in the event any of the provisions of this
Agreement are determined by a court of competent jurisdiction to be invalid, illegal, or for any
reason unenforceable as written, such court shall substitute a valid provision which most closely
approximates the intent and purpose of the invalid provision and which would be enforceable to the
maximum extent permitted by law.
ARTICLE 6.
POST-EMPLOYMENT BENEFITS:
|
A.
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If Employee's employment is terminated by (x)
ARAMARK for any reason other than Cause or (y) Employee for Good Reason (as defined in the
attached Schedule A), then subject to Article 6.D below, Employee shall be
entitled to the following post-employment payments and benefits:
|
1.
Severance Pay
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(a)
|
Employee
shall receive severance payments equivalent to Employee's monthly base salary, as of the effective
date of termination (and without regard to any reduction in violation of this Agreement or which
gives rise to Good Reason) for twenty-four (24) calendar months. Severance payments shall commence
with the Employee's effective date of termination and shall be made in accordance with ARAMARK's
normal payroll cycle. The period during which Employee receives
|
severance payments shall be referred to as the "Severance Pay Period."
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(b)
|
Employee
shall receive an amount equal to two times Employee's most recent actual annual Bonus, payable
ratably in regular installments at the same time as payments are made to Employee under
Section 1(a) above.
|
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(c)
|
Employee
shall receive a payment equal to the Bonus, if any, that Employee would have been entitled to
receive for the year in which the termination occurs based on ARAMARK's actual achievement of the
performance targets applicable to such Bonus, pro-rated based on the percentage of the year that
shall have elapsed through the Employee's termination date, payable when such Bonus would have
otherwise been payable to Employee had Employee's employment not terminated.
|
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(d)
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For the
avoidance of doubt, solely for purposes of subsections (b) and (c) above, Employee's actual annual
Bonus with respect to fiscal year 2012 shall be deemed to equal his full year Target Bonus
(as
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