Categories
employment agreement

J. Michael Luttig Supplemental Pension Agreement

Washington Post: Appeals Court Judge Leaves Life Appointment for Boeing. J. Michael Luttig, the federal appeals court judge who was on President Bush’s short list for the Supreme Court but recently clashed with the administration over a terrorism case, resigned from the bench yesterday to become senior vice president and general counsel at the Boeing Co.

Been scouring Boeing’s securities filings since—what’s the date of that WaPo article?—May 11, 2006. Almost a year ago! Finally found a J. Michael Luttig contract. Not an employment agreement, but better than nothing. The big deal is that Boeing will be paying Luttig $225,000 annually for life once he hits age 65. He’ll be turning 53 in a month, so the payments will start rolling in 12 years from now. Certainly, $225,000 is more than the Chief Justice of the U.S. Supreme Court is pulling in salary. But, we’re talking about 12 years from now. Once inflation takes its toll, that sum may not appear as enticing as it does now. If I’m doing my math right, in 12 years with 2.5% inflation, that $225,000 will buy as much as $166,736 in today’s dollars. Not bad for retirement money, but that’s first-year associate money.

Categories
mergers and acquisitions technology

Microsoft Battles Back

DealBook: Microsoft: Tight-Fisted No More? Microsoft had about $28 billion in cash and short-term investment on March 31, an amount the CIA World Factbook tells us is more than twice the gross domestic product of Iceland. But despite its riches, the software giant has shied away from large acquisitions, especially in the past five years or so.

Well, Microsoft could afford to sit on the sidelines for all those years because the only credible threat they faced was all the antitrust litigation. But now, with Google dominating the search industry and offering free online applications, the world has changed. Oh, Google’s purchase of DoubleClick may have played a role in that decision too. You think?

I’ve posted the Microsoft-aQuantive Merger Agreement. Other aQuantive Inc. contracts online as well.

Categories
employment agreement

Lord John Browne’s Employment Agreement

SEC/Press Release: BP Appoints Tony Hayward as Chief Executive as Lord Browne Steps Down. Lord Browne tendered his resignation after the lifting by the UK courts of a legal injunction preventing a newspaper group from publishing details of his private life.

Read the press release for the details. So, was the petroleum industry talking about Lord Browne or Hugo Chavez today? I’ve added the Employment Agreement between British Petroleum Company plc and Edmund John Philip Browne, or Lord Browne of Madingley, to the website.

Categories
cease and desist

Super-Duper Secret Bank Loan Agreement

No better way to celebrate May Day, than to receive another cease and desist notice. This one alleges that we disseminated competitive information that may harm a bank. Believe me, there are plenty of woes ailing the banking sector nowadays, but I suspect publishing contracts on our site is not one of them.

This firm represents First Republic Bank. We are informed that you are the owner/operator of the website: www.onecle.com, on which you post a variety of business and employment contracts for public viewing.

Specifically, we are contacting you to address your unauthorized publication of the Bank’s Note and Revolving Loan Agreement dated January 5, 2004, with its customer Thomas Weisel Partners Group, LLC at http://contracts.onecle.com/thomas-weisel/first-republic-loan-2004-01-05.shtml and the related Unconditional Secured Guaranty at http://contracts.onecle.com/thomas-weisel/svbank-security-2004-06-15.shtml. There is an additional link to the Note at http://contracts.onecle.com/alpha/1188.shtml.

These are private loan documents containing highly sensitive, proprietary information valuable to the Bank. The Bank has not disclosed these documents voluntarily and, therefore, has not waived any right to maintain their confidentiality. The dissemination of this competitive information to the public may harm the Bank, for which you and your company will be held accountable.

Further, we conclude from the Google-based pay-per-click advertising embedded on every web-page that you or your company have received and will continue to receive revenues flowing directly from your wrongful use of the Bank’s work product. Indeed, one can reasonably assume that is the sole and express purpose of the website. Accordingly, if the Bank pursues legal action against you, it will seek to disgorge any and all profits received during the time those agreements were posted.

The Bank demands the following written assurances: (1) that you will remove both agreements from your site within 24 hours; (2) that you will remove the Bank’s name from any list or index appearing on your site; (3) that you will destroy any electronic and paper copies of those documents; and, (4) that you will not use any information gleaned from those documents for any other purposes in the future.

If you refuse to respond, we will assume that you refuse to cooperate and will pursue whatever course of action necessary to protect our client’s valuable rights.

Very truly yours,

Batya E. Swenson

If you are keeping score at home (or in the office), Thomas Weisel Partners Group, Inc. went public back on February 2, 2006. A month before, Thomas Weisel shared some of its alleged super-duper confidential banking agreements with the SEC and the rest of us. Pay a visit to EDGAR, and you’ll find the above-mentioned Unconditional Secured Guaranty and Note and Revolving Loan Agreement. So, exactly the disclosure of which terms in particular may cause the bank harm?

I also like the gratuitous slam about the “sole and express purpose of the website.” Seriously, all we want to do is make material contracts found in public securities filings easier to find. And, we are none too happy that the SEC sends away our friend the googlebot. If the SEC would just remove that little file so that the people of the world can run full-text searches of material contracts found in securities filings, we would be a happy camper. None of this pay to search B.S. that other major legal research sites foists on its users. So, our May Day call to arms is researchers of the world unite.

Oh yeah, and what’s up with “you will not use any information gleaned from those documents for any other purposes in the future”? What information are we supposed to have gleaned from those documents and what exactly do they envision that we will do with this information? Take out a loan?

Categories
licensing agreement technology

Retro Contracts from the Dot.Com Era

Earlier this week, the SEC revoked the registration of FinancialWeb.com, Inc. for failing to file required periodic reports with the Commission. When did FinancialWeb.com last file a quarterly or annual report? That would be Fall 2000. Almost seven years ago. No rush to judgment here.

I added FinancialWeb.com contracts to the website. All the contracts are old I know. Additionally, the year 2000 was a different era for Internet companies and stocks. You will find all the classic contracts that dot.com companies signed, such as a domain purchase agreement, a “novelty” web site purchase agreement (how else do you describe SlugFest.com?), and all the various content licensing agreements to fill out a new website.

Categories
cease and desist

iVillage – Read the Manual

It must be cease-and-desist Friday. Got one from iVillage today. Here it goes:

I write on behalf of iVillage Inc. (“iVillage”) with respect to certain contracts between iVillage and third parties that are posted on your site at www.onecle.com. As the creator of such contracts, iVillage owns the copyright in the contracts. Although these contracts were made public through filings with the Securities Exchange commission, such filings do not eliminate the copyright that iVillage holds in such contracts. As iVillage Inc. has not granted Onecle, Inc. any right to publish, reproduce or distribute these contracts, their inclusion on www.onecle.com is an infringement of
iVillage’s copyrights.

We demand that you immediately remove all iVillage contracts from your site. If the contracts are not removed from www.onecle.com by 5:00 pm EST on April 30, 2007, we will be forced to explore all legal options available to us.

We are hopeful that this matter can and will be resolved amicably; however, iVillage Inc. reserves all rights in the event no such resolution is reached.

Sincerely,

Karen A. Greenstein
Vice President, Legal Affairs

Let’s see what the EDGAR Filer Manual says about this matter:

When the EDGAR system has completed the processing of your submission, if it is live and public, it will be transmitted electronically to a number of third parties. (There are some individual documents that are considered non-public which will not be immediately disseminated. They may be subsequently disseminated by the SEC if they meet certain criteria.) Dissemination can often occur within seconds of your transmission. Private companies may post your filing on their websites for public use of their subscribers. The filings are also posted on the SEC’s Public Website.

Well, looks like we have a conflict here. If iVillage is right, then the U.S. Securities and Exchange Commission is wrong. After all, what else could “Private companies may post your filing on their websites for public use of their subscribers” mean?

Categories
ipo securities litigation

IPO Tanks. Lawyers Issue Press Release.

Prime Newswire: Investor Notice: KGS Announces Investigation on Behalf of Purchasers of Sourcefire, Inc. Kahn Gauthier Swick, LLC (“KGS”) announces that it has commenced an investigation into Sourcefire, Inc. (“Sourcefire” or the “Company”) (Nasdaq:FIRE) to determine whether it has violated federal securities laws by selling stock pursuant to a materially false and misleading prospectus in or about March, 2007.

Sourcefire’s stock has sunk since it’s IPO. We haven’t found any violations of federal securities laws, but we just want to let you know that we’re starting to look into it. And, that is worth a press release? Sourcefire Inc. contracts have been added. No, we will not be issuing a press release. Bah!

Categories
severance agreement

A No-Lose Situation

New York Times DealBook: Sovereign Ex-Chief Says His Exit Was ‘Misinterpreted’. When Jay Sidhu resigned as chief executive of Sovereign Bancorp last October amid pressure from investors over his deal-making, the Philadelphia-based bank said he was leaving for “family health reasons.” Later, though, Sovereign disclosed in regulatory filings that Mr. Sidhu had faced “threatened termination by the company without cause.”

I’ve added Sovereign Bancorp Inc. contracts to the site. Items of interest include the “Retirement Agreement” between Sovereign and Jay Sidhu, as well as the Settlement Agreement between Sovereign and Relational Investors. Since when do you threaten to terminate someone, then turnaround and handout a 3 year consulting gig for $40,000 per month? If you’re thinking that he will toiling away for a mere $40,000 a month, think again. “Executive’s duties shall not exceed 40 hours per month of consultation….” Should we all be so lucky.

Categories
ipo

comSCORE conTRACTS

TechCrunch noted last week that Comscore had filed its Registration Statement to go public. Here are the comScore Inc. contracts from that filing.

Categories
mortgages

Subprime Contracts

Jeremy Zawodny pointed out the perils of displaying a news feed and live stock chart on a company’s homepage. Looks great when everything is going up-up-and-up, but when the NYSE suspends trading of the company’s securities and the stock price plummets, watch out below! I’ve been working on New Century Financial Corp. contracts recently. They filed a lot of contracts. This is a work-in-progress and I’ll be adding to their list in the next few days.