Exhibit 10.2
PETER WEIL AGREEMENT
THIS AGREEMENT, dated as of September 12, 2006, is between ASHWORTH, INC., a Delaware
corporation and its successors or assignees (Ashworth) and PETER M. WEIL, an individual (Mr.
Weil).
1. ENGAGEMENT OF SERVICES. Ashworth is engaging the services, advice, expertise and counsel
of Mr. Weil on subjects of corporate management and operations and decision-making within the
Office of the Chairman. Subject to the terms of this Agreement, Mr. Weil will, to the best of his
ability, render these duties which, during the term of this Agreement, will essentially require Mr.
Weils full-time attention. All assignments to Mr. Weil must be approved by mutual agreement of
Mr. Weil and either the Chairman of the Ashworth Board or the Ashworth Board of Directors (the
Board) itself, and the scope of Mr. Weils authority and services with respect to such
assignments will be similarly determined by mutual agreement. Mr. Weil agrees to serve as a member
of Ashworths Office of the Chairman, which reports directly to the Chairman of the Board of
Directors of the Company. Mr. Weils engagement hereunder is at will, and nothing in this
Agreement shall confer any right with respect to the continuation of Mr. Weils engagement by
Ashworth. Ashworth will make its employees, facilities and equipment reasonably available to Mr.
Weil in order for him to perform his duties under this Agreement. Mr. Weil may not subcontract or
otherwise delegate his obligations under this Agreement without Ashworths prior written consent.
2. COMPENSATION. In view of the time commitments associated with his duties under this
Agreement as well as his continuing duties a Director on the Board, and until further action of the
Board, Mr. Weil shall be compensated for all services under this Agreement and as a Director for
the duration of service under this Agreement with an aggregate cash retainer of $30,000 per month
(or pro rata portion of each month, as relevant), payable at the end of each month of service. In
this regard and during the term of this Agreement, Mr. Weil shall not receive a separate cash
retainer or per Board Meeting fees for his continuing service as a Director of the Board.
As additional compensation, Ashworth hereby grants to Mr. Weil a non-qualified stock option
grant covering 25,000 shares of Ashworths common stock, with an exercise price equal to 100% of
fair market value of the common stock on the date of grant. The foregoing option shall vest over a
three-month period on a daily basis (inclusive of week-ends and holidays). Vesting shall cease
upon termination of this Agreement, for any reason, and the option shall remain exercisable for a
period of five (5) years after the date of grant. The foregoing option grant, and any future
grants made pursuant to this Section 2, are in addition to, and not in lieu of, any and all stock
option grants to Mr. Weil for his continuing service on the Board.
If this Agreement is not terminated earlier, a comparable stock option grant covering 25,000
shares of common stock shall be made on each three-month anniversary of the Effective Date with
comparable terms and conditions.
Mr. Weil will promptly be reimbursed for reasonable out-of-pocket expenses incurred in
connection with the performance of services under this Agreement provided Mr. Weil submits
verification of such expenses as Ashworth may reasonably require. Upon termination of this
Agreement for any reason, Mr. Weil will be paid fees and expenses earned or accrued through the
date of termination.
3. INDEPENDENT CONTRACTOR RELATIONSHIP. Mr. Weils relationship with Ashworth will be that of
an independent contractor and nothing in this Agreement should be construed to create a
partnership, joint venture, or employer-employee relationship. Mr. Weil will not be entitled to
any of the benefits that Ashworth may make available to its employees, such as group insurance,
profit-sharing or retirement benefits. Mr. Weil will be solely responsible for all tax returns and
payments required to be filed with or made to any federal, state or local tax authority with
respect to his performance of services and receipt of fees under this Agreement. Ashworth will
regularly report amounts paid to Mr. Weil by filing Form 1099-MISC with the Internal Revenue
Service as required by law. Because Mr. Weil is an independent contractor, Ashworth will not
withhold or make payments for social security; make unemployment insurance or disability insurance
contributions; or obtain workers compensation insurance on Mr. Weils behalf. Mr. Weil agrees to
accept exclusive liability for complying with all applicable state and federal laws governing
self-employed individuals, including obligations such as payment of taxes, social security,
disability and other contributions based on fees paid to Mr. Weil , his agents or employees under
this Agreement. Mr. Weil hereby agrees to indemnify and defend Ashworth against any and all such
taxes or contributions, including penalties and interest.
4. TRADE SECRETS INTELLECTUAL PROPERTY RIGHTS.
4.1 Proprietary Information. Mr. Weil agrees that, at all times during the term of this
Agreement and at all times thereafter, he will take all steps necessary to hold all Proprietary
Information (as defined below) in the strictest trust and confidence, will not directly or
indirectly use any Proprietary Information in any manner or for any purpose not expressly set forth
in this Agreement, will not directly or indirectly disclose any Proprietary Information to any
third party, and will not exhibit, demonstrate, or otherwise display Proprietary Information
without first obtaining the express prior written consent of the Chairman of the Board.
Proprietary Information means any knowledge, data or other information of or relating to the
Company not lawfully in the public domain, including, without limitation, the following:
(a) trade secrets, inventions, mask works, ideas, processes, formulas, source and object
codes, data, programs, other works of authorship, know-how, improvements, discoveries,
developments, prototypes, experimental work, computer programs, designs, and techniques
(hereinafter collectively referred to as Inventions);
(b) information regarding development, plans for research, current products, new products,
marketing and selling, business or strategic plans, strategies, budgets, licenses, unpublished
financial statements, prices and costs, other financial information, suppliers and customers; and
(c) information regarding employees, other consultants and licensees or licensors of Ashworth,
as well as the skills and compensation of such persons.
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4.2 Third Party Information. Mr. Weil understands that Ashworth may receive from third
parties confidential or proprietary information (Third Party Information) subject to a duty on
Ashworths part to maintain the confidentiality of such information and use it only for certain
limited purposes. Mr. Weil agrees to hold Third Party Information in confidence and not to
directly or indirectly disclose to anyone (other than Ashworth personnel or authorized
representatives who need to know such information in connection with their work for Ashworth) or to
use, directly or indirectly, except in connection with Mr. Weils services for Ashworth, Third
Party Information unless expressly authorized in writing by the Chairman of the Board.
4.3 No Conflict of Interest. Mr. Weil agrees during the term of this Agreement not to accept
work or enter into a contract or accept an obligation, inconsistent or incompatible with Mr. Weils
obligations under this Agreement or the scope of his duties rendered for Ashworth. Mr. Weil
warrants that to the best of his knowledge that there is no existing contract or duty on Mr. Weils
part that may conflict with the terms of this Agreement. Mr. Weil further agrees not to disclose
to Ashworth, or bring onto Ashworths premises, or induce Ashworth to use any confidential
information that belongs to anyone other than Ashworth or Mr. Weil.
4.4 Disclosure of Work Product. As used in this Agreement, the term Work Product means any
Invention, whether or not patentable, and all related know-how, designs, mask works, trademarks,
formulae, processes, manufacturing techniques, trade secrets, ideas, artwork, prototypes, software
or other copyrightable or patentable works. Mr. Weil agrees to disclose promptly in writing to
Ashworth, or any person designated by Ashworth, all Work Product that is solely or jointly
conceived, made, reduced to practice, or learned by Mr. Weil in the course of any work performed
for Ashworth (Ashworth Work Product). Mr. Weil represents that any Work Product relating to
Ashworths business or any project that Mr. Weil has made, conceived or reduced to practice at the
time of signing this Agreement (Prior Work Product) has been disclosed in writing to Ashworth and
attached to this Agreement as Exhibit A. If disclosure of any such Prior Work Product
would cause Mr. Weil to violate any prior confidentiality agreement, Mr. Weil understands that he
is not to list such Prior Work Product in Exhibit A but he will disclose a cursory name for
each such invention, a listing of the party(ies) to whom it belongs, and the fact that full
disclosure as to such Prior Work Product has not been made for that reason. A space is provided in
Exhibit A for such purpose.
4.5 Ownership of Work Product. Mr. Weil agrees that any and all Inventions conceived,
written, created or first reduced to practice in the performance of work under and related to this
Agreement shall be the sole and exclusive property of Ashworth.
4.6 Assignment of Ashworth Work Product. Mr. Weil irrevocably assigns to Ashworth all right,
title and interest worldwide in and to the Ashworth Work Product and all applicable intellectual
property rights related to the Ashworth Work Product, including without limitation, copyrights,
trademarks, trade secrets, patents, moral rights, contract and licensing rights (the Proprietary
Rights). Except as set forth below, Mr. Weil retains no rights to use the Ashworth Work Product
and agrees not to challenge the validity of Ashworths ownership in the Ashworth Work Product.
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4.7 Waiver or Assignment of Other Rights. If Mr. Weil has any rights to the Ashworth Work
Product that cannot be assigned to Ashworth, Mr. Weil unconditionally and irrevocably waives the
enforcement of such rights, and all claims and causes of action of any kind against Ashworth with
respect to such rights, and agrees, at Ashworths request and expense, to consent to and join in
any action to enforce such rights. If Mr. Weil has any right to the Ashworth Work Product that
cannot be assigned to Ashworth or waived by Mr. Weil, Mr. Weil unconditionally and irrevocably
grants to Ashworth during the term of such rights, an exclusive, irrevocable, perpetual, worldwide,
fully paid and royalty-free license, with rights to sublicense through multiple levels of
sublicensees, to reproduce, create derivative works of, distribute, publicly perform and publicly
display by all means now known or later developed, such rights.
4.8 Assistance. Mr. Weil agrees to cooperate with Ashworth or its designee(s), both during
and after the term of this Agreement, in the procurement and maintenance of Ashworths rights in
Ashworth Work Product and to execute, when requested, any other documents deemed necessary by
Ashworth to carry out the purpose of this Agreement. Mr. Weil agrees to promptly execute upon
Ashworths request a signed transfer of copyright to Ashworth in the form attached to this
Agreement as Exhibit B for all Ashworth Work Product subject to copyright protection,
including, without limitation, computer programs, notes, sketches, drawings and reports.
4.9 Enforcement of Proprietary Rights. Mr. Weil will assist Ashworth in every proper way to
obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to
Ashworth Work Product in any and all countries. To that end Mr. Weil will execute, verify and
deliver such documents and perform such other acts (including appearances as a witness) as Ashworth
may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and
enforcing such Proprietary Rights and the assignment thereof. In addition, Mr. Weil will execute,
verify and deliver assignments of such Proprietary Rights to Ashworth or its designee. Mr. Weils
obligation to assist Ashworth with respect to Proprietary Rights relating to such Ashworth Work
Product in any and all countries shall continue beyond the termination of this Agreement, but
Ashworth shall compensate Mr. Weil at a reasonable rate after such termination for the time
actually spent by Mr. Weil at Ashworths request on such assistance.
4.10 Execution of Documents. In the event Ashworth is unable for any reason, after reasonable
effort, to secure Mr. Weils signature on any document needed in connection with the actions
specified in the preceding Sections 4.8 and 4.9, Mr. Weil hereby irrevocably designates and
appoints Ashworth and its duly authorized officers and agents as his agent and attorney-in-fact,
which appointment is coupled with an interest, to act for and on his behalf to execute, verify and
file any such documents and to do all other lawfully permitted acts to further the purposes of the
preceding paragraph with the same legal force and effect as if executed by Mr. Weil. Mr. Weil
hereby waives and quitclaims to Ashworth any and all claims, of any nature whatsoever, that Mr.
Weil now or may hereafter have for infringement of any Proprietary Rights assigned or attempted to
be assigned hereunder to Ashworth.
5. MR. WEILS REPRESENTATIONS AND WARRANTIES. Mr. Weil hereby represents and warrants to
Ashworth that:
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(a) the Ashworth Work Product will be an original work of Mr. Weil and any third parties will
have executed assignment of rights reasonably acceptable to Ashworth;
(b) neither the Ashworth Work Product nor any element thereof will infringe the Intellectual
Property Rights of any third party;
(c) neither the Ashworth Work Product nor any element thereof will be subject to any
restrictions or to any mortgages, liens, pledges, security interests, encumbrances or
encroachments;
(d) Mr. Weil will not grant, directly or indirectly, any rights or interest whatsoever in the
Ashworth Work Product to third parties;
(e) Mr. Weil has full right and power to enter into and perform this Agreement without the
consent of any third party; and
(f) Mr. Weil will take all reasonably necessary precautions to prevent injury to any persons
(including employees of Ashworth) or damage to property (including Ashworths property) during the
term of this Agreement.
6. INDEMNIFICATION. Mr. Weil will indemnify and hold harmless Ashworth, its officers,
directors, employees, sublicensees, customers and agents from any and all claims, losses,
liabilities, damages, expenses and costs (including actual attorneys fees and court costs) that
result from a breach or alleged breach of any representation or warranty of Mr. Weil (a Claim)
set forth in Section 5 of this Agreement, provided that Ashworth gives Mr. Weil written
notice of any such Claim and Mr. Weil has the right to participate in the defense of any such Claim
at his expense. Notwithstanding this right of participation, Ashworth retains the sole and
exclusive right to select legal counsel for itself. From the date of written notice from Ashworth
to Mr. Weil of any such Claim, Ashworth shall have the right to withhold from any payments due Mr.
Weil under this Agreement the amount of any defense costs, plus additional reasonable amounts as
security for Mr. Weils obligations under this Section 6.
7. TERMINATION.
7.1 Termination by Ashworth. Ashworth may terminate this Agreement at its convenience and
without any breach by Mr. Weil upon written notice to Mr. Weil. Ashworth may also terminate this
Agreement immediately in its sole discretion upon Mr. Weils material breach of Section 4
or any other section of this Agreement.
7.2 Termination by Mr. Weil. Mr. Weil may terminate this Agreement at any time upon written
notice to Ashworth. Mr. Weil may also terminate this Agreement immediately in his sole discretion
upon Ashworths material breach of this Agreement.
7.3 Return of Ashworth Property. Upon termination of the Agreement for any reason, Mr. Weil
will deliver to Ashworth any and all drawings, notes, computer source or object code, memoranda,
specifications, devices, formulas, and documents, together with all copies thereof, and any other
material containing or disclosing any Ashworth Work Product, Third Party Information or Proprietary
Information of Ashworth. Mr. Weil further agrees that
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any property situated on Ashworths premises and owned by Ashworth, including disks and other
storage media, filing cabinets or other work areas, is subject to inspection by Ashworth personnel
at any time with or without notice.
8. GENERAL PROVISIONS.
8.1 Governing Law. This Agreement will be governed and construed in accordance with the laws
of the State of California as applied to transactions taking place wholly within California between
California residents, without giving effect to principles of conflict of laws. Mr. Weil hereby
expressly and irrevocably consents to the personal jurisdiction of the state and federal courts
located in San Diego County or Orange County, California for any lawsuit filed arising from or
related to this Agreement and any suit arising from this Agreement shall be brought in those
courts.
8.2 Severability. In case any one or more of the provisions contained in this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein. Moreover, if any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to
the extent compatible with the applicable law as it shall then appear.
8.3 No Assignment. This Agreement may not be assigned by Mr. Weil without Ashworths prior
written consent, and any such attempted assignment shall be void and of no effect.
8.4 Notices. All notices, requests and other communications under this Agreement must be in
writing, and must be mailed by registered or certified mail, postage prepaid and return receipt
requested, or delivered by hand to the party to whom such notice is required or permitted to be
given. If mailed, any such notice will be considered to have been given three (3) business days
after it was mailed, as evidenced by the postmark. If delivered by hand, any such notice will be
considered to have been given when received by the party to whom notice is given, as evidenced by
written and dated receipt of the receiving party. The mailing address for notice to either party
will be the address shown on the signature page of this Agreement. Either party may change its
mailing address by notice as provided by this section.
8.5 Legal Fees. If any dispute arises between the parties with respect to the matters covered
by this Agreement which leads to a proceeding to resolve such dispute, the prevailing party in such
proceeding shall be entitled to receive its actual attorneys fees, expert witness fees and
out-of-pocket costs incurred in connection with such proceeding, in addition to any other relief it
may be awarded.
8.6 Injunctive Relief. Mr. Weil agrees that any breach of this Agreement will result in
irreparable and continuing damage to Ashworth for which there may be no adequate remedy at law, and
the Ashworth is therefore entitled to seek injunctive relief in addition to such other and further
relief as may be appropriate. All applicable actions may be taken by the
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Ashworth without bond and without prejudice to any other rights and remedies that the Ashworth
may have for a breach of this Agreement. The failure of the Ashworth to promptly institute legal
action upon any breach of this Agreement shall not constitute a waiver of that or any other breach
hereof.
8.7 Survival. The following provisions shall survive termination of this Agreement:
Section 4, Section 5, Section 6 and Section 8.
8.8 Export. Mr. Weil agrees not to export, directly or indirectly, any U.S. source technical
data acquired from Ashworth or any products utilizing such data to countries outside the United
States, which export may be in violation of the United States export laws or regulations.
8.9 Waiver. No waiver by Ashworth or Mr. Weil of any breach of this Agreement shall be a
waiver of any preceding or succeeding breach. No waiver by Ashworth or Mr. Weil of any right under
this Agreement shall be construed as a waiver of any other right. Neither Ashworth nor Mr. Weil
shall be required to give notice to enforce strict adherence to all terms of this Agreement.
8.10 Entire Agreement. This Agreement is the final, complete and exclusive agreement of the
parties with respect to the subject matter hereof and supersedes and merges all prior discussions
between us. No modification of or amendment to this Agreement, nor any waiver of any rights under
this Agreement, will be effective unless in writing and signed by the party to be charged. The
terms of this Agreement will govern all duties undertaken by Mr. Weil for Ashworth.
8.11 Counterparts. Facsimile transmission of any signed original of this Agreement will be
deemed the same as delivery of an original. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and each of which together shall be deemed
one and the same instrument.
[The remainder of this page is intentionally left blank.]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representative as of the 12th day of September, 2006.
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ASHWORTH, INC. |
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By:
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/s/ James B. Hayes |
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Name: James B. Hayes |
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Title: Chairman of the Board |
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PETER M. WEIL
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/s/ Peter M. Weil
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Peter M. Weil |
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For copyright registration purposes only, Mr. Weil needs to provide the following information:
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Address:
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Date of Birth: |
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Nationality or Domicile: |
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EXHIBIT A
PRIOR WORK PRODUCT DISCLOSURE
1. Except as listed in Section 2 below, the following is a complete list of all Prior
Work Product that have been made or conceived or first reduced to practice by Mr. Weil alone or
jointly with others prior to the date of this Agreement:
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No inventions or improvements. |
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See below: |
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List other work product here: |
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Additional sheets attached. |
2. Due to a prior confidentiality agreement, Mr. Weil cannot complete the disclosure under
Section 1 above with respect to inventions or improvements generally listed below, the
proprietary rights and duty of confidentiality with respect to which Mr. Weil owes to the following
party(ies):
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| Invention or Improvement |
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Party(ies) |
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Relationship |
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Additional sheets attached. |
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EXHIBIT B
ASSIGNMENT OF COPYRIGHT
For good and valuable consideration which has been received, the undersigned sells, assigns
and transfers to Ashworth, and its successors and assigns, the copyright in and to the following
work, which was created by the following indicated author(s):
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Copyright Office Identification No. (if any):
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and all of the right, title and interest of the undersigned, vested and contingent, therein and
thereto.
Executed this ___ day of , 20___.
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