Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34 Filing Table of Contents
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2: EX-10.13 Material Contract HTML 392K
3: EX-10.19 Material Contract HTML 214K
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6: EX-10.25 Material Contract HTML 96K
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10: EX-10.44 Material Contract HTML 62K
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12: EX-13 Annual or Quarterly Report to Security Holders HTML 971K
13: EX-21 Subsidiaries List HTML 30K
14: EX-23 Consent of Experts or Counsel HTML 30K
15: EX-31.1 Certification -- §302 - SOA'02 HTML 35K
16: EX-31.2 Certification -- §302 - SOA'02 HTML 35K
17: EX-32.1 Certification -- §906 - SOA'02 HTML 30K
18: EX-32.2 Certification -- §906 - SOA'02 HTML 30K
25: R1 Document and Entity Information HTML 55K
26: R2 Consolidated Statements of Income HTML 102K
27: R3 Consolidated Statements of Comprehensive Income HTML 55K
28: R4 Consolidated Balance Sheets HTML 124K
29: R5 Consolidated Balance Sheets (Parenthetical) HTML 51K
30: R6 Consolidated Statements of Cash Flows HTML 140K
31: R7 Consolidated Statements of Shareholders' Equity HTML 136K
32: R8 Significant Accounting Policies HTML 239K
33: R9 Acquisitions HTML 74K
34: R10 Goodwill and Other Intangibles HTML 88K
35: R11 Share Repurchase Programs HTML 54K
36: R12 Borrowing and Credit Agreements HTML 118K
37: R13 Leases HTML 65K
38: R14 Medicare Part D HTML 31K
39: R15 Pension Plans and Other Postretirement Benefits HTML 137K
40: R16 Stock Incentive Plans HTML 116K
41: R17 Income Taxes HTML 108K
42: R18 Commitments and Contingencies HTML 84K
43: R19 Segment Reporting HTML 105K
44: R20 Earnings Per Share HTML 60K
45: R21 Quarterly Financial Information (Unaudited) HTML 165K
46: R22 Significant Accounting Policies (Policies) HTML 194K
47: R23 Significant Accounting Policies (Tables) HTML 161K
48: R24 Acquisitions (Table) HTML 59K
49: R25 Goodwill and Other Intangibles (Tables) HTML 84K
50: R26 Share Repurchase Programs Share Repurchase HTML 37K
Programs (Tables)
51: R27 Borrowing and Credit Agreements (Tables) HTML 93K
52: R28 Leases (Tables) HTML 61K
53: R29 Pension Plans and Other Postretirement Benefits HTML 124K
Pension Plans and Other Postretirement Benefits
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54: R30 Stock Incentive Plans (Tables) HTML 114K
55: R31 Income Taxes (Tables) HTML 107K
56: R32 Segment Reporting (Tables) HTML 98K
57: R33 Earnings Per Share (Tables) HTML 59K
58: R34 Quarterly Financial Information (Unaudited) HTML 164K
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59: R35 Significant Accounting Policies - Description of HTML 78K
Business (Details)
60: R36 Significant Accounting Policies - Fair Value of HTML 32K
Financial Instruments (Details)
61: R37 Significant Accounting Policies - Accounts HTML 36K
Receivable (Details)
62: R38 Significant Accounting Policies - Property and HTML 79K
Equipment (Details)
63: R39 Significant Accounting Policies - Intangible HTML 36K
Assets (Details)
64: R40 Significant Accounting Policies - Redeemable HTML 54K
Noncontrolling Interest and Revenue Recognition
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65: R41 Significant Accounting Policies - Facility HTML 46K
Opening, Advertising Costs, Interest Expense, and
Shares Held in Trust (Details)
66: R42 Significant Accounting Policies - Accumulated HTML 73K
Other Comprehensive Income (Details)
67: R43 Significant Accounting Policies - Stock-based HTML 50K
Compensation and Variable Interest Entity
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68: R44 Significant Accounting Policies - Related Party HTML 40K
Transactions (Details)
69: R45 Significant Accounting Policies - Discontinued HTML 48K
Operations and Earnings per Common Share (Details)
70: R46 Significant Accounting Policies - New Accounting HTML 53K
Pronouncements (Details)
71: R47 Acquisitions - Omnicare Acquisition (Details) HTML 143K
72: R48 Acquisitions - Target Pharmacy Acquisition HTML 74K
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73: R49 Goodwill and Other Intangibles - Goodwill HTML 51K
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74: R50 Goodwill and Other Intangibles - Intangible Assets HTML 76K
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75: R51 Share Repurchase Programs (Details) HTML 113K
76: R52 Borrowing and Credit Agreements - Schedule of HTML 117K
Long-term Debt Instruments (Details)
77: R53 Borrowing and Credit Agreements - Additional HTML 255K
Information (Details)
78: R54 Borrowing and Credit Agreements - Debt Maturities HTML 42K
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79: R55 Leases - Additional Information (Details) HTML 47K
80: R56 Leases - Schedule of Rent Expense (Details) HTML 42K
81: R57 Leases - Schedule of Future Minimum Lease Payments HTML 72K
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82: R58 Pension Plans and Other Postretirement Benefits - HTML 99K
Additional Information (Details)
83: R59 Pension Plans and Other Postretirement Benefits - HTML 47K
Change in Benefit Obligation (Details)
84: R60 Pension Plans and Other Postretirement Benefits - HTML 53K
Change in Plan Assets (Details)
85: R61 Pension Plans and Other Postretirement Benefits - HTML 46K
Components of Net Periodic Benefit Cost (Details)
86: R62 Pension Plans and Other Postretirement Benefits - HTML 57K
Fair Value Allocation of Plan Assets (Details)
87: R63 Pension Plans and Other Postretirement Benefits - HTML 42K
Expected Future Benefit Payments (Details)
88: R64 Stock Incentive Plans - Schedule of Stock-based HTML 38K
Compensation (Details)
89: R65 Stock Incentive Plans - Additional Information HTML 93K
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90: R66 Stock Incentive Plans - Schedule of Valuation HTML 46K
Assumptions of ESPP (Details)
91: R67 Stock Incentive Plans - Schedule of Restricted HTML 52K
Stock and RSU Activity (Details)
92: R68 Stock Incentive Plans - Fair Value of Options HTML 42K
Using Black-Scholes (Details)
93: R69 Stock Incentive Plans - Schedule of Stock Option HTML 82K
Activity (Details)
94: R70 Income Taxes (Details) HTML 130K
95: R71 Commitments and Contingencies (Details) HTML 62K
96: R72 Segment Reporting (Details) HTML 99K
97: R73 Earnings Per Share (Details) HTML 65K
98: R74 Quarterly Financial Information (Unaudited) HTML 90K
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100: XML IDEA XML File -- Filing Summary XML 162K
99: EXCEL IDEA Workbook of Financial Reports XLSX 130K
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I, Jonathan C. Roberts, enter into this Restrictive Covenant Agreement (“Agreement”) with CVS Pharmacy, Inc. (“CVS”), which is effective as of the date I sign the Agreement (the “Effective Date”). In consideration of the mutual promises in this Agreement, the parties agree as follows:
1.Consideration for Agreement. I
am entering into this Agreement in consideration of: (a) the Corporation’s award of restricted stock units as set forth in the “Restricted Stock Unit Agreement - Annual Grant dated April 1, 2016” (the “2016 RSU Agreement”) to which this Agreement is attached, contingent on my execution of this Agreement and compliance with its terms; and (b) in connection with my duties and responsibilities at CVS Health Corporation or one of its subsidiaries or affiliates (collectively, the “Corporation”), the Corporation will provide me with Confidential Information and/or access to the Corporation’s customers and clients and the opportunity to develop and maintain relationships and goodwill with them.
2.Non-Competition. During my employment
by the Corporation and during the Non-Competition Period following the termination of my employment for any reason, I will not, directly or indirectly, engage in Competition or provide Consulting or Audit Services within the Restricted Area.
a. Competition. Engaging in “Competition” means providing services to a Competitor of the Corporation (whether as an employee, independent contractor, consultant, principal, agent, partner, officer, director, investor, or shareholder, except as a shareholder of less than one percent of a publicly traded company) that: (i) are the same or similar in function or purpose to the services I provided to the Corporation during the last two years of my employment by the Corporation, or (ii) will likely result in the disclosure of Confidential Information to a Competitor or the use of Confidential Information on behalf of a Competitor. If
a representative of the Corporation, during my employment or the Non-Competition Period, requests that I identify the company or business to which I will be or am providing services, or with which I will be or am employed, and requests that I provide information about the services that I am or will be providing to such entity, I shall provide the Corporation with a written statement detailing the identity of the entity and the nature of the services that I am or will be providing to such entity with sufficient detail to allow the Corporation to independently assess whether I am or will be in violation of this Agreement. Such statement shall be delivered to the Corporation’s Chief Human Resources Officer or her authorized delegate via personal delivery or overnight delivery within five calendar days of
my receipt of such request.
b. Com petitor. A “Competitor” for purposes of this Agreement shall mean any person, corporation or other entity that competes with one or more of the business offerings of the Corporation. As of the Effective Date, the Corporation’s business offerings include: (i) pharmacy benefits management (“PBM”), including: (a) the administration of pharmacy benefits for businesses, government agencies and health plans; (b) mail order pharmacy; (c) specialty pharmacy, including but not limited to infusion and related services; (d) Medicare Part D services; (ii) retail, which includes the sale of prescription drugs, over-the-counter medications, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards, convenience foods and other product lines that are sold by the Corporation’s
retail division; (iii) retail health care (“MinuteClinic”); and (iv) the provision of pharmaceutical products and ancillary services, including specialty pharmaceutical products and support services, and the provision of related pharmacy consulting, data management services and medical supplies to long-term care facilities, other healthcare service providers and recipients of services from such facilities (“Long-Term Care”). A person or entity shall not be considered a retail Competitor if such entity derives annual gross revenues from its business in an amount that is less than 5% of the Corporation’s gross revenues from its retail business during its most recently completed fiscal year. The Parties acknowledge that both the Corporation’s products and services and the entities that compete with the Corporation’s products and services evolve and that an entity will be considered a Competitor if it provides products or services competitive with the products
and services provided by the Corporation within the last two years of my employment.
Given my role in the Corporation, I agree to this enterprise-wide definition of non-competition that will prevent me from providing services to the Corporation’s PBM, retail and MinuteClinic Competitors during the relevant time period.
c. Consulting or Audit Services. “Consulting or Audit Services” shall mean any activity that involves providing audit review or other consulting or advisory services with respect to any relationship or prospective relationship between the Corporation and any third party, including but not limited to PBM and Long Term Care clients, suppliers or vendors and that is likely to
result in the use or disclosure of Confidential Information.
d. Non-Competition Period. The “Non-Competition Period” shall be the period of three (3) years following the termination of my employment with the Corporation for any reason.
e. Restricted Area. “Restricted Area” refers to those states within the United States in which the Corporation conducts its business, as well as the District of Columbia and Puerto Rico. To the extent I worked on international projects in Brazil and/or Ireland or other countries where the Corporation may conduct business, the Restricted Area includes those countries and prospective countries.
f. Acknowledgment.
I acknowledge and agree that the geographic scope and duration of the restrictions set forth in this Section 2 are reasonable and necessary to protect the legitimate business interests of the Corporation, including the Corporation’s Confidential Information and good will, in light of the very senior position I hold with the Corporation and the highly sensitive information with which I have been and will be entrusted. I further acknowledge that I have received adequate consideration for any loss of opportunity associated with the provisions herein, which is described in the 2016 RSU Agreement and to which I would not otherwise be entitled but for my execution of this Agreement.
3.Non-Solicitation. During the Non-Solicitation Period, which shall be three (3) years following the termination of my employment with the Corporation for
any reason, I will not, unless a duly authorized officer of the Corporation gives me written authorization to do so:
a.interfere with the Corporation’s relationship with its Business Partners by soliciting or communicating (regardless of who initiates the communication) with a Business Partner to: (i) induce or encourage the Business Partner to stop doing business or reduce its business with the Corporation, or (ii) buy a product or service that competes with a product or service offered by the Corporation’s business. “Business Partner” means: a customer (person or entity), prospective customer (person or entity), supplier, manufacturer, broker, hospital, hospital system, and/or pharmaceutical company with whom the Corporation has a business relationship and with which I had business-related contact or dealings, or about which I received Confidential Information, in the two years prior to the termination
of my employment with the Corporation. A Business Partner does not include a customer, supplier, manufacturer, broker, hospital, hospital system, pharmaceutical company that has fully and finally ceased doing any business with the Corporation independent of any conduct or communications by me or breach of this Agreement. Nothing in this Paragraph 3(a) shall prevent me from working as a staff pharmacist or in another retail position wherein I would be providing or selling prescriptions or other products directly to consumers.
b.work on a Corporation account on behalf of a Business Partner or serve as the representative of a Business Partner for the Corporation.
c.interfere with the Corporation’s relationship with any employee or contractor of
the Corporation by: (i) soliciting or communicating with the employee or contractor to induce or encourage him or her to leave the Corporation’s employ or engagement (regardless of who first initiates the communication); (ii) helping another person or entity evaluate such employee or contractor as an employment or contractor candidate; or (iii) otherwise helping any person or entity hire an employee or contractor away from the Corporation.
d. Acknowledgment. I acknowledge and agree that the geographic scope and duration of the restrictions set forth in this Section 3 are reasonable and necessary to protect the legitimate business interests of the Corporation, including the Corporation’s Confidential Information and good will, in light of the very senior position I hold with the Corporation and the highly sensitive information with which I have been and will be entrusted. I further
acknowledge that I have received adequate consideration for any loss of opportunity associated with the provisions herein, which is described in the 2016 RSU Agreement and to which I would not otherwise be entitled but for my execution of this Agreement.
4.Non-Disclosure of Confidential Information.
a. Subject to Section 7 below, I will not at any time, whether during or after the termination of my employment, disclose to any person or entity any of the Corporation’s Confidential Information, except as may be appropriately required in the ordinary course of performing my duties as an employee of the Corporation. The Corporation’s Confidential Information includes but is not limited to the following non-public information: trade secrets; computer code generated or
developed by the Corporation; software or programs and related documentation; strategic compilations and analysis; strategic processes; business or financial methods, practices and plans; non-public costs and prices; operating margins; marketing, merchandising and selling techniques and information; customer lists; details of customer agreements; pricing arrangements with drug manufacturers, including but not limited to any discounts and/or rebates; pharmacy reimbursement rates; expansion strategies; real estate strategies; operating strategies; sources of supply; patient records; and confidential information of third parties which is given to the Corporation pursuant to an obligation or agreement to keep such information confidential (collectively, “Confidential Information”). I shall not use or attempt to use any Confidential Information on behalf of any person or entity other than the Corporation, or in any manner which may injure or cause loss or may be calculated
to injure or cause loss, whether directly or indirectly, to the Corporation. For employees residing in Connecticut, these restrictions on use or disclosure of Confidential Information will only apply for three (3) years after the end of my employment where information that does not qualify as a trade secret is concerned; however, the restrictions will continue apply to trade secret information for as long as the information at issue remains qualified as a trade secret.
b. During my employment, I shall not make, use, or permit to be used, any materials of any nature relating to any matter within the scope of the business of the Corporation or concerning any of its dealings or affairs other than for the benefit of the Corporation. I shall not, after the termination of my employment, use or permit to be used any such materials and shall return same in accordance with Section 5 below.
5.Ownership
and Return of the Corporation’s Property. On or before my final date of employment with the Corporation, I shall return to the Corporation all property of the Corporation in my possession, custody or control, including but not limited to the originals and copies of any information provided to or acquired by me in connection with the performance of my duties for the Corporation, such as files, correspondence, communications, memoranda, e-mails, slides, records, and all other documents, no matter how produced or reproduced, all computer equipment, communication devices (including but not limited to any mobile phone, BlackBerry or other portable digital assistant or device), computer programs and/or files, and all office keys and access cards. I agree that all the items described in this Section are the sole property of the Corporation.
6.Rights
to Inventions, Works.
a. Assignment of Inventions. All inventions, original works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, whether patentable or otherwise protectable under similar law, made, conceived or developed by me, whether alone or jointly with others, from the date of my initial employment by the Corporation and continuing until the end of any period during which I am employed by the Corporation, relating or pertaining in any way to my employment with or the business of the Corporation (collectively referred to as “Inventions”) shall be promptly disclosed in writing to the Corporation. I hereby assign to the Corporation, or its designee, all of my rights, title and interest to such Inventions. All original works of authorship which are made by me
(solely or jointly with others) within the scope of and during the period of my employment with the Corporation and which are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act and as such are the sole property of the Corporation. The decision whether to commercialize or market any Invention developed by me solely or jointly with others is within the Corporation’s sole discretion and for the Corporation’s sole benefit and no royalty will be due to me as a result of the Corporation’s efforts to commercialize or market any such Invention.
b. Inventions Retained and Licensed. I have attached hereto as Exhibit A, a list describing all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to my employment with the Corporation (“Prior Inventions”),
which belong to me and are not assigned to the Corporation hereunder. If no such list is attached, I represent that there are no such Prior Inventions. I will not incorporate, or permit to be incorporated, any Prior Invention owned by me or in which I have an interest into a Corporation product, process or machine without the Corporation’s prior written consent. Notwithstanding the foregoing sentence, if, in the course of my employment with the Corporation, I incorporate into a Corporation product, process or machine a Prior Invention owned by me or in which I have an interest, the Corporation is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine.
c. Patent and Copyright Registrations. I
will assist the Corporation, or its designee, at the Corporation’s expense, in every proper way to secure the Corporation’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating thereto, including, but not limited to, the disclosure to the Corporation of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Corporation shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Corporation, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. My obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after my employment ends
for any reason and/or after the termination of this Agreement. If the Corporation is unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the Corporation as above, then I hereby irrevocably designate and appoint the Corporation and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me.
d. Exception
to Assignments. I understand that if I am an employee in Illinois, Kansas, North Carolina, Utah or Minnesota, I should refer to Exhibit B (incorporated herein for all purposes) for important limitations on the scope of the provisions of this Agreement concerning assignment of Inventions. I will advise the Corporation promptly in writing of any inventions that I believe meet the criteria in Exhibit B and that are not otherwise disclosed on Exhibit A.
7.Cooperation.
a. In the event that I receive a subpoena, deposition notice, interview request, or other process or order to testify or produce Confidential Information or any other information or property of the Corporation, I shall promptly: (a) notify the Corporation of
the item, document, or information sought by such subpoena, deposition notice, interview request, or other process or order; (b) furnish the Corporation with a copy of said subpoena, deposition notice, interview request, or other process or order; and (c) provide reasonable cooperation with respect to any procedure that the Corporation may initiate to protect Confidential Information or other interests. If the Corporation objects to the subpoena, deposition notice, interview request, process, or order, I shall cooperate to ensure that there shall be no disclosure until the court or other applicable entity has ruled upon the objection, and then only in accordance with the ruling so made. If no such objection is made despite a reasonable opportunity to do so, I shall be entitled to comply with the subpoena, deposition, notice, interview request, or other process or order provided that I have fulfilled the above obligations.
b. I
will cooperate fully with the Corporation, its affiliates, and their legal counsel in connection with any action, proceeding, or dispute arising out of matters with which I was directly or indirectly involved while serving as an employee of the Corporation, its predecessors, subsidiaries or affiliates. This cooperation shall include, but shall not be limited to, meeting with, and providing information to, the Corporation and its legal counsel, maintaining the confidentiality of any past or future privileged communications with the Corporation’s legal counsel (outside and in-house), and making myself available to testify truthfully by affidavit, in depositions, or in any other forum on behalf of the Corporation. The Corporation agrees to reimburse me for any reasonable and necessary out-of-pocket costs associated with my cooperation.
8.Limitation
on Restrictions. Nothing in this Agreement is intended to or shall interfere with my right to file charges or participate in a proceeding with any appropriate federal, state or local government agency, including the Equal Employment Opportunity Commission or the National Labor Relations Board, or to prohibit me from communicating or cooperating with any such agency in its investigation.
9.Eligibility for Severance Pay. If my employment with the Corporation terminates under circumstances in which I am eligible for severance under the Corporation’s Severance Plan for Non-Store Employees (the “Severance Plan”), the Corporation will offer me severance in accordance with the Severance Plan and the length of the Non-Competition Period will match the length of the severance period. I acknowledge that the Severance Plan sets forth pre-requisites I must meet
in order to receive severance, including but not limited to execution of the Corporation’s standard separation agreement and release of claims. In the event that the Corporation fails to comply with its obligations to offer me severance according to the Severance Plan, then Section 2 of this Agreement shall be of no further effect. I agree that if I decline the Corporation’s offer of severance, I shall continue to be subject to the restrictions in Section 2.
10.Injunctive Relief. Any breach of this Agreement by me will cause irreparable damage to the Corporation and, in the event of such breach, the Corporation shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or other equitable relief to prevent the violation of my obligations hereunder, and without providing a bond to the extent permitted by the applicable rules of civil
procedure.
11.No Right of Continued Employment. This Agreement does not create an obligation on the Corporation or any other person or entity to continue my employment.
12.No Conflicting Agreements. I represent that the performance of my job duties with the Corporation and my compliance with all of the terms of this Agreement does not and will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Corporation.
13.Entire Agreement/No Reliance/No Modifications. This Agreement and any compensation, benefit or equity plan or agreement referred to herein including the CVS Health Corporation Change in Control Agreement (“CIC
Agreement”), to the extent those other agreements apply to me, set forth the entire agreement between the parties hereto and fully supersede any and all prior and/or supplemental understandings, whether written or oral, between the parties concerning the subject matter of this Agreement. Notwithstanding the foregoing, if I am a party to the CIC Agreement, then I understand that in the event of a Change in Control, as that term is defined in the CIC, Paragraph 2 of this Agreement shall be null and void. I agree and acknowledge that I have not relied on any representations, promises or agreements of any kind in connection with my decision to accept the terms of this Agreement, except for the representations, promises and agreements herein. Any modification to this Agreement must be made in writing and signed by me and the Corporation’s Chief Human Resources Officer or her authorized representative.
14.No
Waiver. Any waiver by the Corporation of a breach of any provision of this Agreement, or of any other similar agreement with any other current or former employee of the Corporation, shall not operate or be construed as a waiver of any subsequent breach of such provision or any other provision hereof.
15.Severability. The parties hereby agree that each provision herein shall be treated as a separate and independent clause, and the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses herein. Moreover, if one or more of the provisions of this Agreement are for any reason held to be excessively broad as to scope, activity, duration, subject or otherwise so as to be unenforceable at law, the parties consent to such provision or provisions being modified or limited by the appropriate judicial body (where allowed
by applicable law), so as to be enforceable to the maximum extent compatible with the applicable law.
16.Survival of Employee’s Obligations. My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination and shall be binding upon my heirs, personal representatives, executors, administrators and legal representatives.
17.Corporation’s Right to Assign Agreement. The Corporation has the right to assign this Agreement to its successors and assigns without the need for further agreement or consent by me, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns.
18.Non-Assignment. I
shall not assign my rights and obligations under this Agreement, in whole or in part, whether by operation of law or otherwise, without the prior written consent of the Corporation, and any such assignment contrary to the terms hereof shall be null and void and of no force or effect.
19.Governing Law; Headings. This Agreement shall be governed by and construed in accordance with the laws of the state of Rhode Island. The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.
20.Tolling. In the event I violate one of the time-limited restrictions in this Agreement, I agree that the time period for such violated restriction shall be extended by one day for each
day I have violated the restriction, up to a maximum extension equal to the length of the original period of the restricted covenant.
IN WITNESS WHEREOF, the undersigned has executed this Agreement as a sealed instrument as of the date set forth below.
For
an employee residing in Illinois, Kansas, or North Carolina, you are hereby advised:
Notice. No provision in this Agreement requires you to assign any of your rights to an invention for which no equipment, supplies, facility, or trade secret information of the Corporation was used and which was developed entirely on your own time, unless (a) the invention relates (i) to the business of the Corporation or (ii) to the Corporation’s actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by you for the Corporation. Illinois 765ILCS1060/1-3, “Employees Patent Act”; Kansas Statutes Section 44-130; North Carolina General Statutes Article 10A, Chapter 66, Commerce and Business, Section 66-57.1.
2.
For an employee residing in Utah, you are hereby advised:
Notice. No provision in this Agreement requires you to assign any of your rights to an invention which was created entirely on your own time, and which is not (a) conceived, developed, reduced to practice, or created by you (i) within the scope of your employment with the Corporation, (ii) on the Corporation’s time, or (iii) with the aid, assistance, or use of any of the Corporation’s property, equipment, facilities, supplies, resources, or patents, trade secrets, know-how, technology, confidential information, ideas, copy rights, trademarks and service marks and any and all rights, applications and registrations relating to
them, (b) the results of any work, services, or duties performed by you for the Corporation, (c) related to the industry or trade of the Corporation, or (d) related to the current or demonstrably anticipated business, research, or development of the Corporation. Utah Code Sections 34-39-1 through 34-39-3, “Employee Inventions Act.”
3.
For an employee residing in Minnesota, you are hereby advised:
Notice. No provision in this Agreement requires you to assign any of your rights to an invention for which no equipment,
supplies, facility, or trade secret information of the Corporation was used, and which was developed entirely on your own time, and (a) which does not relate (i) directly to the business of the Corporation, or (ii) to the Corporation’s actual or demonstrably anticipated research or development, or (b) which does not result from any work performed by you for the Corporation. Minnesota Statutes 13A Section 181.78.
Dates Referenced Herein and Documents Incorporated by Reference