**Exhibit 10.19**

 

**AMENDED AND RESTATEDEMPLOYMENT AND NONCOMPETITION AGREEMENT**

 

THIS AMENDEDAND RESTATED EMPLOYMENT AND NONCOMPETITION AGREEMENT (the “Agreement”) is madeand entered into as of October 10, 2003, by and among Avocent Texas L.P.,a Texas limited partnership (“Employer”), Avocent Corporation, a Delawarecorporation, and C. David Perry****(the“Employee”).

 

RECITALS

 

WHEREAS,Avocent Corporation and its affiliates including Employer, AvocentInternational Ltd., Avocent Huntsville Corp., and Avocent Redmond Corp. (“ARC”)(Avocent Corporation and its affiliates are collectively referred to in thisAgreement as “Avocent”) are engaged in the business of designing,manufacturing, and selling connectivity solutions for enterprise data centers,service providers, and financial institutions; and

 

WHEREAS,Employee, Avocent Redmond Corp., and Avocent Corporation entered into thatcertain Employment and Noncompetition Agreement dated  March 7, 2000 (the “Original Employment Agreement”); and 

 

WHEREAS,Employee, Employer, and Avocent Corporation now wish to amend and restate theOriginal Employment Agreement with this Amended and Restated Employment andNoncompetition Agreement.

 

**AGREEMENT**

 

THE PARTIESHERETO AGREE AS FOLLOWS:

 

1.                                       DUTIES.  During the term of this Agreement, theEmployee agrees to be employed by Employer and to serve Avocent as its SeniorVice President of Global Marketing and OEM Sales.  The Employee shall devote such of his business time, energy, andskill to the affairs of Avocent and Employer as shall be necessary to performthe duties of Senior Vice President of Global Marketing and OEM Sales.  The Employee shall report to the Presidentand Chief Executive Officer and the Executive Vice President of ARC and AvocentCorporation and to the Boards of Directors of ARC and Avocent Corporation, andat all times during the term of this Agreement, the Employee shall have powersand duties at least commensurate with his position as Senior Vice President ofGlobal Marketing and OEM Sales of Avocent Corporation.

 

2.                                       TERMOF EMPLOYMENT.

 

2.1                                 DEFINITIONS.  For purposes of this Agreement the followingterms shall have the following meanings:

 

(a)                                  “TERMINATIONFOR CAUSE” shall mean termination by the Employer or Avocent Corporation of theEmployee’s employment with the Employer or Avocent by reason of the Employee’swillful dishonesty towards, fraud upon, or deliberate injury or attemptedinjury to, the Employer or Avocent or by reason of the Employee’s willfulmaterial breach of this Agreement which has resulted in material injury to theEmployer or Avocent.

 

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(b)                                 “TERMINATIONSOTHER THAN FOR CAUSE” shall mean termination by the Employer or AvocentCorporation of the Employee’s employment with the Employer or Avocent (otherthan in a Termination for Cause) and shall include (i) any constructivetermination of the Employee’s employment by reason of material breach of thisAgreement by the Employer or Avocent, such constructive termination to beeffective upon thirty (30) days written notice from the Employee to theEmployer of such constructive termination and (ii) any attempt to relocateoutside of the vicinity of Austin, Texas: (x) the Employee, (y) the Employee’s duties and responsibilities, or (z)the Employer’s office at which Employee is employed.  Notwithstanding the foregoing, Employee agrees that a change inhis duties and responsibilities shall not result in a constructive terminationunder this Section 2.1(b) unless such change results in a substantialdiminution of Employee’s duties and responsibilities.  

 

(c)                                  “VOLUNTARYTERMINATION” shall mean termination by the Employee of the Employee’semployment with the Employer or Avocent other than (i) constructive terminationas described in subsection 2.1(b), (ii) “Termination Upon a Change inControl” as described in Section 2.1(e), and (iii) termination by reasonof the Employee’s disability or death as described in Sections 2.5 and 2.6.

 

(d)                                 “TERMINATIONUPON A CHANGE IN CONTROL” shall mean (i) a termination by the Employee of theEmployee’s employment with the Employer or Avocent within six (6) monthsfollowing any “Change in Control” or (ii) any termination by the Employer orAvocent Corporation of the Employee’s employment with the Employer orAvocent(other than a Termination for Cause) within eighteen (18) monthsfollowing any “Change in Control.”

 

(e)                                  “CHANGEIN CONTROL” shall mean, after the date of this Agreement, any one of thefollowing events:

 

(i)                                     Anyperson (other than Avocent Corporation) acquires beneficial ownership ofEmployer’s, ARC’s, or Avocent Corporation’s securities and is or therebybecomes a beneficial owner of securities entitling such person to exercisetwenty-five percent (25%) or more of the combined voting power of Employer’s,ARC’s, or Avocent Corporation’s then outstanding stock.  For purposes of this Agreement, “beneficialownership” shall be determined in accordance with Regulation 13D under theSecurities Exchange Act of 1934, or any similar successor regulation or rule;and the term “person” shall include any natural person, corporation,partnership, trust or association, or any group or combination thereof, whoseownership of Employer’s, ARC’s, or Avocent Corporation’s securities would berequired to be reported under such Regulation 13D, or any similar successorregulation or rule.

 

(ii)                                  Withinany twenty-four (24) month period, the individuals who were Directors ofAvocent Corporation at the beginning of any such period, together with anyother Directors first elected as directors of Avocent Corporation pursuant tonominations approved or ratified by at least two-thirds (2/3) of the Directorsin office immediately prior to any such election, cease to constitute amajority of the Board of Directors of Avocent Corporation.

 

(iii)                               AvocentCorporation’s stockholders approve:

 

(1)                                  anyconsolidation or merger of Avocent Corporation in which Avocent Corporation isnot the continuing or surviving corporation or pursuant to which shares ofAvocent Corporation common stock would be converted into cash, securities orother

 

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property,other than a merger or consolidation of Avocent Corporation in which theholders of Avocent Corporation’s common stock immediately prior to the mergeror consolidation have substantially the same proportionate ownership and votingcontrol of the surviving corporation immediately after the merger orconsolidation; or

 

(2)                                  anysale, lease, exchange, liquidation or other transfer (in one transaction or aseries of transactions) of all or substantially all of the assets of AvocentCorporation.

 

Notwithstandingsubparagraphs (e)(iii)(1) and (e)(iii)(2) above, the term “Change in Control”shall not include a consolidation, merger, or other reorganization if uponconsummation of such transaction all of the outstanding voting stock of AvocentCorporation is owned, directly or indirectly, by a holding company, and theholders of Avocent Corporation’s common stock immediately prior to thetransaction have substantially the same proportionate ownership and voting controlof such holding company after such transaction.

 

2.2                                 BASICTERM.  The term of employment of theEmployee by the Employer shall be for the period beginning on the date of thisAgreement, and ending on December 31, 2007, unless terminated earlierpursuant to this Section 2.  At anytime before December 31, 2007, the Employer and the Employee may by mutualwritten agreement extend the Employee’s employment under the terms of thisAgreement for such additional periods as they may agree.

 

2.3                                 TERMINATIONFOR CAUSE.  Termination For Cause may beeffected by the Employer at any time during the term of this Agreement andshall be effected by thirty (30) days written notification to the Employee fromthe Boards of Directors of Employer and Avocent Corporation stating the reasonfor termination.  Upon Termination ForCause, the Employee immediately shall be paid all accrued salary, bonuscompensation to the extent earned, vested deferred compensation, if any (otherthan pension plan or profit sharing plan benefits which will be paid inaccordance with the applicable plan), any benefits under any plans of Employeror Avocent in which the Employee is a participant to the full extent of theEmployee’s rights under such plans, accrued vacation pay and any appropriate businessexpenses incurred by the Employee in connection with his duties hereunder, allto the date of termination, but the Employee shall not be paid any othercompensation or reimbursement of any kind, including without limitation,severance compensation.

 

2.4                                 TERMINATIONOTHER THAN FOR CAUSE.  Notwithstandinganything else in this Agreement, the Employer may effect a Termination OtherThan For Cause at any time upon giving thirty (30) days written notice to theEmployee of such termination.  Upon anyTermination Other Than For Cause, the Employee shall immediately be paid allaccrued salary, bonus compensation to the extent earned, vested deferredcompensation, if any (other than pension plan or profit sharing plan benefitswhich will be paid in accordance with the applicable plan), any benefits underany plans of Employer or Avocent in which the Employee is a participant to thefull extent of the Employee’s rights under such plans, accrued vacation pay andany appropriate business expenses incurred by the Employee in connection withhis duties hereunder, all to the date of termination, and all severancecompensation provided in Section 4.2, but no other compensation orreimbursement of any kind.

 

2.5                                 TERMINATIONBY REASON OF DISABILITY.  If, during theterm of this Agreement, the Employee, in the reasonable judgment of the Boardof Directors of Avocent

 

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Corporation,has failed to perform his duties under this Agreement on account of illness orphysical or mental incapacity, and such illness or incapacity continues for aperiod of more than six (6) consecutive months, the Employer shall have theright to terminate the Employee’s employment hereunder by delivery of writtennotice to the Employee at any time after such six month period and payment tothe Employee of all accrued salary, bonus compensation to the extent earned,additional bonus compensation in an amount equal to the average annual bonusearned by the Employee as an employee of Avocent Corporation and its affiliatesand predecessors in the two (2) years immediately preceding the date oftermination, vested deferred compensation, if any (other than pension plan orprofit sharing plan benefits which will be paid in accordance with theapplicable plan), any benefits under any plans of Employer or Avocent in whichthe Employee is a participant to the full extent of the Employee’s rights undersuch plans (including having the vesting of any awards granted to the Employeeunder any ARC or Avocent stock option plans fully accelerated), accruedvacation pay and any appropriate business expenses incurred by the Employee inconnection with his duties hereunder, all to the date of termination, with theexception of medical and dental benefits which shall continue through theexpiration of this Agreement, but the Employee shall not be paid any othercompensation or reimbursement of any kind, including without limitation,severance compensation.

 

2.6                                 TERMINATIONBY REASON OF DEATH.  In the event of theEmployee’s death during the term of this Agreement, the Employee’s employmentshall be deemed to have terminated as of the last day of the month during whichhis death occurs and the Employer shall pay to his estate or such beneficiariesas the Employee may from time to time designate all accrued salary, bonuscompensation to the extent earned, vested deferred compensation, if any (otherthan pension plan or profit sharing plan benefits which will be paid inaccordance with the applicable plan), any benefits under any plans of Employeror Avocent in which the Employee is a participant to the full extent of theEmployee’s rights under such plans (including having the vesting of any awardsgranted to the Employee under any ARC or Avocent stock option plans fullyaccelerated), accrued vacation pay and any appropriate business expensesincurred by the Employee in connection with his duties hereunder, all to thedate of termination, but the Employee’s estate shall not be paid any othercompensation or reimbursement of any kind, including without limitation,severance compensation.

 

2.7                                 VOLUNTARYTERMINATION.  Notwithstanding anythingelse in this Agreement, the Employee may effect a Voluntary Termination at anytime upon giving thirty (30) days written notice to the Employer of suchtermination.  In the event of aVoluntary Termination, the Employer shall immediately pay all accrued salary,bonus compensation to the extent earned, vested deferred compensation, if any(other than pension plan or profit sharing plan benefits which will be paid inaccordance with the applicable plan), any benefits under any plans of Employeror Avocent in which the Employee is a participant to the full extent of theEmployee’s rights under such plans, accrued vacation pay and any appropriatebusiness expenses incurred by the Employee in connection with his dutieshereunder, all to the date of termination, but no other compensation orreimbursement of any kind, including without limitation, severancecompensation.

 

2.8                                 TERMINATIONUPON A CHANGE IN CONTROL.  In the eventof a Termination Upon a Change in Control, the Employee shall immediately bepaid all accrued salary, bonus compensation to the extent earned, vesteddeferred compensation, if any (other than pension plan or profit sharing planbenefits which will be paid in accordance with the applicable plan), anybenefits under any plans of Employer or Avocent in which the Employee is aparticipant to the full

 

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extent of theEmployee’s rights under such plans (including having the vesting of any awardsgranted to the Employee under any ARC or Avocent stock option plans fullyaccelerated), accrued vacation pay and any appropriate business expensesincurred by the Employee in connection with his duties hereunder, all to thedate of termination, and all severance compensation provided inSection 4.1, but no other compensation or reimbursement of any kind.  

 

3.                                       SALARY,BENEFITS AND BONUS COMPENSATION.

 

3.1                                 BASESALARY.  Effective January 1, 2003,as payment for the services to be rendered by the Employee as provided inSection 1 and subject to the terms and conditions of Section 2, theEmployer agrees to pay to the Employee a “Base Salary” at the rate of$225,000.00 per annum, payable in equal bi-weekly installments.  The Base Salary for each calendar year (orproration thereof) beginning January 1, 2004****shall be determined by the Board of Directors of AvocentCorporation upon a recommendation of the Compensation Committee of AvocentCorporation (the “Compensation Committee”), which shall authorize an increasein the Employee’s Base Salary in an amount which, at a minimum, shall be equalto the cumulative cost-of-living increment on the Base Salary as reported inthe “Consumer Price Index for All Urban Consumers (CPI-U), All Items Index, forDallas-Ft. Worth, TX” published by the U.S. Department of Labor (usingJanuary 1, 2003, as the base date for computation prorated for any partialyear)..* *The Employee’s Base Salary shall be reviewed annually by theBoard of Directors and the Compensation Committee of Avocent Corporation.

 

3.2                                 BONUSES.  The Employee shall be eligible to receive abonus for each calendar year (or portion thereof) during the term of thisAgreement and any extensions thereof, with the actual amount of any such bonusto be determined in the sole discretion of the Board of Directors of AvocentCorporation based upon its evaluation of the Employee’s performance during suchyear.  All such bonuses shall be payableduring the last month of the fiscal year or within forty-five (45) days afterthe end of the fiscal year to which such bonus relates.  All such bonuses shall be reviewed annuallyby the Compensation Committee of Avocent Corporation.

 

3.3                                 ADDITIONALBENEFITS.  During the term of this Agreement,the Employee shall be entitled to the following fringe benefits:

 

(a)                                  THEEMPLOYEE BENEFITS.  The Employee shallbe eligible to participate in such of Avocent’s benefits and deferredcompensation plans as are now generally available or later made generallyavailable to executive officers or Avocent, including, without limitation,stock option plans, Section 401(k) plan, profit sharing plans, deferredcompensation plan, annual physical examinations, dental and medical plans,personal catastrophe and disability insurance, retirement plans andsupplementary executive retirement plans, if any.  For purposes of establishing the length of service under anybenefit plans or programs of ARC or Avocent, the Employee’s employment with theEmployer (or any successor) will be deemed to have commenced on the date thatEmployee first commenced employment with ARC, which was November 16,1998.  

 

(b)                                 VACATION.  The Employee shall be entitled to vacationin accordance with the Avocent Corporation’s vacation policy but in no eventless than three (3) weeks during each year of this Agreement.

 

(c)                                  LIFEINSURANCE.  For the term of thisAgreement and any extensions thereof, the Employer shall at its expense procureand keep in effect term life insurance

 

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on the life ofthe Employee, payable to such beneficiaries as the Employee may from time totime designate, in an aggregate amount equal to three times the Employee’s BaseSalary.  Such policy shall be owned bythe Employee or by any person or entity with an insurable interest in the lifeof the Employee.

 

(d)                                 REIMBURSEMENTFOR EXPENSES.  During the term of thisAgreement, the Employer or Avocent Corporation shall reimburse the Employee forreasonable and properly documented out-of-pocket business and/or entertainmentexpenses incurred by the Employee in connection with his duties under thisAgreement in accordance with Avocent’s standard reimbursement policies.

 

4.                                       SEVERANCECOMPENSATION.

 

4.1                                 SEVERANCECOMPENSATION IN THE EVENT OF A TERMINATION UPON A CHANGE IN CONTROL.  In the event of a Termination Upon a Changein Control, the Employee shall be paid as severance compensation his BaseSalary (at the rate payable at the time of such termination) for a period oftwelve (12) months from the date of such Termination Upon a Change in Control,on the dates specified in Section 3.1, and the Employee shall also be paidan amount equal to the average annual bonus earned by the Employee as anemployee of Avocent Corporation and its affiliates and predecessors in the two(2) years immediately preceding the date of termination.  Notwithstanding anything in thisSection 4.1 to the contrary, the Employee may in the Employee’s solediscretion, by delivery of a notice to the Employer within thirty (30) daysfollowing a Termination Upon a Change in Control, elect to receive from theEmployer a lump sum severance payment by bank cashier’s check equal to thepresent value of the flow of cash payments that would otherwise be paid to theEmployee pursuant to this Section 4.1. Such present value shall be determined as of the date of delivery of thenotice of election by the Employee and shall be based on a discount rate equalto the interest rate of 90-day U.S. Treasury bills, as reported in *The Wall Street Journal* (or similarpublication), on the date of delivery of the election notice.  If the Employee elects to receive a lump sumseverance payment, Avocent Corporation shall cause the Employer to make suchpayment to the Employee within ten (10) days following the date on which theEmployee notifies the Employer of the Employee’s election.  The Employee shall also be entitled to havethe vesting of any awards granted to the Employee under any ARC or Avocentstock option plans fully accelerated.  TheEmployee shall be provided with medical plan benefits under any health plans ofAvocent or Employer in which the Employee is a participant to the full extentof the Employee’s rights under such plans for a period of twelve (12) monthsfrom the date of such Termination Upon a Change in Control (even if Employeeelects to receive a lump sum severance payment).

 

4.2                                 SEVERANCECOMPENSATION IN THE EVENT OF A TERMINATION OTHER THAN FOR CAUSE.  In the event of a Termination Other Than forCause, the Employee shall be paid as severance compensation his Base Salary (atthe rate payable at the time of such termination) for a period of twelve (12)months from the date of such termination, on the dates specified inSection 3.1, and Employee shall also be paid an amount equal to theaverage annual bonus earned by the Employee as an employee of AvocentCorporation and its affiliates and predecessors in the two (2) yearsimmediately preceding the date of termination. Notwithstanding anything in this Section 4.2 to the contrary, theEmployee may in the Employee’s sole discretion, by delivery of a notice to theEmployer within thirty (30) days following a Termination Other Than for Cause,elect to receive from the Employer a lump sum severance payment by bankcashier’s check

 

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equal to thepresent value of the flow of cash payments that would otherwise be paid to theEmployee pursuant to this Section 4.2. Such present value shall be determined as of the date of delivery of thenotice of election by the Employee and shall be based on a discount rate equalto the interest rate on 90-day U.S. Treasury bills, as reported in *The Wall Street Journal* (or similarpublication), on the date of delivery of the election notice.  If the Employee elects to receive a lump sumseverance payment, Avocent Corporation shall cause the Employer to make suchpayment to the Employee within ten (10) days following the date on which theEmployee notifies the Employer of the Employee’s election.  The Employee shall also be entitled to havethe vesting of any awards granted to the Employee under any ARC or Avocentstock option plans fully accelerated. The Employee shall be provided withmedical plan benefits under any health plans of Avocent or Employer in whichthe Employee is a participant to the full extent of the Employee’s rights undersuch plans for a period of twelve (12) months from the date of such TerminationOther Than for Cause (even if Employee elects to receive a lump sum severancepayment).

 

4.3                                 NOSEVERANCE COMPENSATION UNDER OTHER TERMINATION.  In the event of a Voluntary Termination, Termination For Cause,termination by reason of the Employee’s disability pursuant toSection 2.5, termination by reason of the Employee’s death pursuant toSection 2.6, the Employee or his estate shall not be paid any severancecompensation.

 

5.                                       NON-COMPETITIONOBLIGATIONS.  Unless waived or reducedby the Employer or Avocent, during the term of this Agreement and for a periodof twelve (12) months thereafter, the Employee will not, without the Employer’sand Avocent Corporation’s prior written consent, directly or indirectly, aloneor as a partner, joint venturer, officer, director, employee, consultant,agent, independent contractor or stockholder of any company or business, engagein any business activity in the United States, Canada, Europe, or Asia which issubstantially similar to or in direct competition with any of the businessactivities of or services provided by the Employer or Avocent at such time.  Notwithstanding the foregoing, the ownershipby the Employee of not more than five percent (5%) of the shares of stock ofany corporation having a class of equity securities actively traded on anational securities exchange or on The Nasdaq Stock Market shall not be deemed,in and of itself, to violate the prohibitions of this Section 5. 

 

6.                                       MISCELLANEOUS.

 

6.1                                 PAYMENTOBLIGATIONS.  If litigation after aChange in Control shall be brought to enforce or interpret any provisioncontained herein, the Employer and Avocent Corporation, to the extent permittedby applicable law and the Employer’s and Avocent Corporation’s Articles ofIncorporation and Bylaws, each hereby indemnifies the Employee for theEmployee’s reasonable attorneys’ fees and disbursements incurred in suchlitigation.

 

6.2                                 GUARANTEE.  Avocent Corporation hereby unconditional andirrevocable guarantees all payment obligations of the Employer under thisAgreement, including, without limitation, the Employer’s obligations underSections 2, 3, 4, and 6 hereof.

 

6.3                                 WITHHOLDINGS.  All compensation and benefits to theEmployee hereunder shall be reduced by all federal, state, local, and otherwithholdings and similar taxes and payments required by applicable law.

 

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6.4                                 WAIVER.  The waiver of the breach of any provision ofthis Agreement shall not operate or be construed as a waiver of any subsequentbreach of the same or other provision hereof.

 

6.5                                 ENTIREAGREEMENT; MODIFICATIONS.  Except asotherwise provided herein, this Agreement represents the entire understandingamong the parties with respect to the subject matter hereof, and this Agreementsupersedes any and all prior understandings, agreements, plans andnegotiations, whether written or oral with respect to the subject matter hereofincluding without limitation, the Original Employment Agreement,**and any understandings, agreements orobligations respecting any past or future compensation, bonuses, reimbursementsor other payments to the Employee from the Employer or AvocentCorporation.  All modifications to theAgreement must be in writing and signed by the party against whom enforcementof such modification is sought.

 

6.6                                 NOTICES.  All notices and other communications underthis Agreement shall be in writing and shall be given by hand delivery or firstclass mail, certified or registered with return receipt requested, and shall bedeemed to have been duly given upon hand delivery to an officer of the Employeror the Employee, as the case may be, or upon three (3) days after mailing tothe respective persons named below:

 
| If to the  Employer/Avocent: | Avocent  Corporation  |
|------------------------------|-----------------------|
|                         | 4991  Corporate Drive |
|                         | Huntsville,  AL 35805 |
|                         | Attn:                 | Executive  Vice President |
|                         | Copy to:              | General  Counsel |
|                         |                  |
| If to the  Employee:         | C. David  Perry       |
|                         |                  |   |
|                         |                  |   |
|                              |                       |  |  |

 

Any party maychange such party’s address for notices by notice duly given pursuant to thisSection 6.6.

 

6.7                                 HEADINGS.  The Section headings herein areintended for reference and shall not by themselves determine the constructionor interpretation of this Agreement.

 

6.8                                 GOVERNINGLAW; VENUE.  This Agreement shall begoverned by and construed in accordance with the laws of the State ofTexas.  The Employee, the Employer, andAvocent Corporation each hereby expressly consents to the exclusive venue ofthe state and federal courts located in Austin, Texas, for any lawsuit arisingfrom or relating to this Agreement.  

 

6.9                                 ARBITRATION.  Any controversy or claim arising out of orrelating to this Agreement, or breach thereof, shall be settled by arbitrationin Austin, Texas, in accordance with the Rules of the American ArbitrationAssociation, and judgment upon any proper award rendered by the arbitrators maybe entered in any court having jurisdiction thereof.  There shall be three (3) arbitrators, one (1) to be chosendirectly by each party at will, and the third arbitrator to be selected by thetwo (2) arbitrators so chosen.  To theextent permitted by the Rules of the American Arbitration Association, theselected arbitrators may grant equitable relief.  Each party shall pay the fees of the arbitrator selected by himand of his own attorneys, and the expenses of his witnesses

 

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and all otherexpenses connected with the presentation of his case.  The cost of the arbitration including the cost of the record ortranscripts thereof, if any, administrative fees, and all other fees and costsshall be borne equally by the parties.

 

6.10                           SEVERABILITY.  If a court or other body of competent jurisdictiondetermines that any provision of this Agreement is excessive in scope orotherwise invalid or unenforceable, such provision shall be adjusted ratherthan voided, if possible, and all other provisions of this Agreement shall bedeemed valid and enforceable to the extent possible.

 

6.11                           SURVIVALOF EMPLOYER’S OBLIGATIONS.  TheEmployer’s and Avocent Corporation’s obligations hereunder shall not beterminated by reason of any liquidation, dissolution, bankruptcy, cessation ofbusiness, or similar event relating to the Employer or AvocentCorporation.  This Agreement shall notbe terminated by any merger or consolidation or other reorganization of theEmployer or Avocent Corporation.  In theevent any such merger, consolidation or reorganization shall be accomplished bytransfer of stock or by transfer of assets or otherwise, the provisions of thisAgreement shall be binding upon and inure to the benefit of the surviving orresulting corporation or person.  ThisAgreement shall be binding upon and inure to the benefit of the executors,administrators, heirs, successors and assigns of the parties; provided,however, that except as herein expressly provided, this Agreement shall not beassignable either by the Employer (except to an affiliate of the Employer(including Avocent Corporation) in which event the Employer shall remain liableif the affiliate fails to meet any obligations to make payments or providebenefits or otherwise) or by the Employee.

 

6.12                           COUNTERPARTS.  This Agreement may be executed in one ormore counterparts, all of which taken together shall constitute one and thesame Agreement.

 

6.13                           INDEMNIFICATION.  In addition to any rights to indemnificationto which the Employee is entitled to under the Employer’s or AvocentCorporation’s Articles of Incorporation and Bylaws, the Employer and AvocentCorporation shall indemnify the Employee at all times during and after the termof this Agreement to the maximum extent permitted under the corporation laws ofthe State of Delaware and any other applicable state law, and shall pay theEmployee’s expenses in defending any civil or criminal action, suit, orproceeding in advance of the final disposition of such action, suit, orproceeding, to the maximum extent permitted under such applicable state laws.

 

6.14                           INDEMNIFICATIONFOR SECTION 4999 EXCISE TAXES.  Inthe event that it shall be determined that any payment or other benefit paid bythe Employer or Avocent Corporation to or for the benefit of the Employee underthis Agreement or otherwise, but determined without regard to any additionalpayments required under this Amendment (the “Payments”) would be subject to theexcise tax imposed by Section 4999 of the Internal Revenue Code (the“Excise Tax”), then the Employer and Avocent Corporation shall indemnify theEmployee for such Excise Tax in accordance with the following:

 

(a)                                  TheEmployee shall be entitled to receive an additional payment from the Employerand/or Avocent Corporation equal to (i) one hundred percent (100%) of anyExcise Tax actually paid or finally or payable by the Employee in connectionwith the Payments, plus (ii) an additional payment in such amount that afterall taxes, interest and penalties incurred in connection with all paymentsunder this Section 2(a), the Employee retains an amount equal to onehundred percent (100%) of the Excise Tax.

 

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(b)                                 Alldeterminations required to be made under this Section shall be made by theAvocent Corporation’s primary independent public accounting firm, or any othernationally recognized accounting firm reasonably acceptable to the AvocentCorporation and the Employee (the “Accounting Firm”).  Avocent Corporation shall cause the Accounting Firm to providedetailed supporting calculations of its determinations to the Employer and theEmployee.  All fees and expenses of theAccounting Firm shall be borne solely by the Employer.  For purposes of making the calculationsrequired by this Section, the Accounting Firm may make reasonable assumptions andapproximations concerning applicable taxes and may rely on reasonable, goodfaith interpretations concerning the application of Sections 280G and 4999 ofthe Internal Revenue Code, provided the Accounting Firm’s determinations mustbe made with substantial authority (within the meaning of Section 6662 ofthe Internal Revenue Code). The payments to which the Employee is entitledpursuant to this Section shall be paid by the Employer and/or AvocentCorporation to the Employee in cash and in full not later than thirty (30)calendar days following the date the Employee becomes subject to the ExciseTax.

 

IN WITNESSWHEREOF, the parties hereto have executed this Agreement as of the day and yearfirst above written.

 
|   | **AVOCENT TEXAS L.P.:**  |
|--------|--------------------------|
|   |                     |   |
|   |                     |   |
|   | By:                      | /s/ Doyle C.  Weeks |
|   | Its:                     | Vice  President |
|   |                     |   |
|   |                     |   |
|   | **AVOCENT CORPORATION:** |
|   |                     |   |
|   |                     |   |
|   | By:                      | /s/ John R.  Cooper |
|   | Its:                     | President  and Chief Executive Officer |
|   |                     |   |
|   |                     |   |
|   | **EMPLOYEE:**            |
|   |                     |   |
|   |                     |   |
|   | /s/ C. David  Perry      |
|   | C. David  Perry          |

 

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