Document:

EXHIBIT NO. 10.1

 

McGRANE, GREENFIELD, HANNON &
HARRINGTON LLP

40 SOUTH MARKET STREET, SECOND FLOOR, SAN
JOSE, CALIFORNIA 95113

TELEPHONE (408) 995-5600 FAX (408) 995-0308

 

BERNARD S. GREENFIELD, SBN. 66017

BRIAN J. HANNON, SBN. 99750

McGRANE, GREENFIELD,

HANNON & HARRINGTON LLP

40 South Market Street, Second Floor

San Jose, California 95113

Telephone: (408) 995-5600

 

Attorneys for Plaintiff

JOHN ARRILLAGA, Trustee of the John Arrillaga

Survivor’s Trust UTA Dated 7/20/77

 

SUPERIOR COURT OF THE STATE OF CALIFORNIA

 

COUNTY OF SANTA CLARA

 

	
  JOHN ARRILLAGA, Trustee of the John

  Arrillaga Survivor’s Trust UTA Dated

  7/20/77,

  	
   

  	
  Case No. 1-03-CV000500

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STIPULATION
  TO STAY

  
	
  Plaintiff,

  	
   

  	
  ENFORCEMENT
  OF JUDGMENT

  
	
   

  	
   

  	
   

  
	
  vs.

  	
   

  	
   

  

 

MICRO COMPONENT

TECHNOLOGY, INC., WHICH WILL

DO BUSINESS IN CALIFORNIA AS

MINNESOTA MICRO COMPONENT

TECHNOLOGY, INC. a Minnesota

corporation; and DOES 1 through 20,

inclusive,

 

	
  Defendants.

  	
   

  	
   

  

 

This
Stipulation to Stay Enforcement of Judgment (“Stipulation”), which for purposes
of reference is dated May 11, 2005, is made by and between Plaintiff JOHN
ARRILLAGA, Trustee of the John Arrillaga Survivor’s Trust UTA Dated 7/20/77, (“Plaintiff”)
and Defendant MICRO COMPONENT TECHNOLOGY, INC. WHICH DOES BUSINESS IN
CALIFORNIA AS MINNESOTA MICRO COMPONENT TECHNOLOGY, INC., a Minnesota
corporation (“Defendant”).

 

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STIPULATION TO STAY ENFORCEMENT OF JUDGMENT

 

Plaintiff and
Defendant stipulate and agree as follows:

 

1.                                       On
April 11, 2005, a Judgment (“Judgment”) was entered in favor of Plaintiff and
against Defendant in the amount of $385,761.13 plus costs of suit, including
attorney’s fees, as provided in Code of Civil Procedure Section 1033.5 in
the files and records of the above-entitled court.  A copy of the Judgment is attached hereto as Exhibit
“A” and incorporated herein by this reference.  This Judgment is fully valid and immediately enforceable
and Defendant has no defense thereto.

 

2.                                       Plaintiff
is entitled to recover all of his attorney’s fees and litigation expenses (whether
or not they are allowable as costs in Code of Civil Procedure Section 1033.5.)  The total amount of attorney’s fees and
litigation expenses is $99,999.59.  The
parties stipulate and agree that the amount of such fees and expenses is reasonable.

 

3.                                       The
total amount that Defendant owes Plaintiff, including attorney’s fees, litigation
expenses, and accrued interest, is $546,532.32.  A spreadsheet itemizing the amount that
Defendant owes Plaintiff is attached hereto as Exhibit “B” and incorporated herein
by this reference.  The parties stipulate
and agree that this amount is correct.

 

4.                                       The
amount of the Judgment shall be increased to $546,532.32 and the Judgment shall
be amended in the form attached hereto as Exhibit “C” (hereafter the “Amended
Judgment”).  The Amended Judgment shall
be fully valid and immediately enforceable.  Defendant acknowledges and agrees that no
defense to the Amended Judgment exists and, accordingly, Defendant hereby
waives and releases any right to seek any appellate review of the Amended
Judgment.

 

5.                                       The
Amended Judgment shall be filed and entered as a final judgment in the files
and records of the above-entitled Court.  The Amended Judgment shall bear interest from
and after May 11, 2005 at the annual rate of ten percent.

 

6.                                       Execution
upon the Amended Judgment shall be stayed provided that Defendant pays to
Plaintiff the sum of $442,779.25 plus interest at the annual rate of ten percent
as follows:

 

(a)                                  On
or before May 19, 2005, Defendant shall pay to Plaintiff the

 

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amount of $50,000.00;

 

(b)                                 Defendant
shall thereafter make monthly payments to Plaintiff on the 15th day of each month, commencing June 15, 2005 and ending on October 15,
2007, in good funds, on the dates and in the amounts set forth in the
Settlement Amortization Schedule (“Schedule”) attached hereto as Exhibit “D”
and incorporated herein by this reference. 
Defendant shall send such payments directly to: John Arrillaga, Trustee
of the John Arrillaga Survivor’s Trust UTA Dated 7/20/77, % Peery/Arrillaga,
2560 Mission College Boulevard, Suite 101, Santa Clara, California 95054.

 

(c)                                  Within ten (10) business days after receipt
of the final payment set forth in the Schedule, Plaintiff shall file a Satisfaction
of the Amended Judgment.  Plaintiff shall
send an endorsed filed copy of such dismissal to Defendant’s attorneys of
record, Mitchell & Herzog, LLP, 550 Hamilton Avenue, Suite 230, Palo Alto,
CA 94301.

 

7.                                       In the event that Defendant fails to make any
of the payments set forth in Paragraph No. 6 above or to comply with any of the
other terms or conditions of this Stipulation, such failure shall constitute an
event of default (“Default”). 
Immediately, upon the occurence of any Default, Plaintiff shall be free
to take any action necessary to enforce and collect the full amount outstanding
under the Amended Judgment.  As used
herein, the term “amount outstanding” shall mean the sum of $546,532.32 plus
any interest that has accrued on such sum under Paragraph No. 5 above, less any
payments made by Defendant to Plaintiff hereunder.

 

8.                                       Except with respect to the rights and
obligations created under this Stipulation, Plaintiff and Defendant fully and
forever release, discharge and covenant not ever to sue or otherwise to
institute legal or administrative proceedings against each other with respect
to any matter, claim, liability, demand, obligation, cause of action or thing
in action, of every nature, kind and description, in law, equity, or otherwise,
whether or not now known or ascertained, which heretofore has existed,
presently exists or in the future may exist, relating to or arising out of the
Lease Agreement dated January 6, 1995, as amended, between Plaintiff and
Defendant for the premises located at 324 Martin Avenue,

 

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Santa Clara, California.

 

9.                                       With
respect to the parties’ release as set forth above in Paragraph 4, the parties
hereby expressly waive and relinquish any and all rights and benefits conferred
upon them by the provisions of Section 1542 of the California Civil Code, which
states as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED
HIS SETTLEMENT WITH THE DEBTOR.

 

10.                                 Unless
expressly stated otherwise, whenever the phrase “Plaintiff” is used, it shall
refer to and include JOHN ARRILLAGA, in his individual capacity and his capacity
as Trustee of the John Arrillaga Survivor’s Trust UTA Dated 7/20/77, his heirs,
executors, administrators, representatives, agents, attorneys, insurers,
sureties, nominees, successors, transferees and assigns.  Similarly, unless expressly stated otherwise,
whenever the phrase “Defendant” is used, it shall refer to and include MICRO
COMPONENT TECHNOLOGY, INC. WHICH DOES BUSINESS IN CALIFORNIA AS MINNESOTA MICRO
COMPONENT TECHNOLOGY, INC., a Minnesota corporation, its officers, directors,
shareholders, employees, representatives, agents, attorneys, insurers,
sureties, nominees, successors, transferees and assigns.

 

11.                                 This
Stipulation is made and entered into in the State of California and shall in
all respects be interpreted, enforced and governed by and under the laws of
that state.

 

12.                                 Each
party to this Stipulation represents and warrants that each person whose
signature appears hereon has been duly authorized and has the full authority to
execute this Stipulation on behalf of the person or entity who is a party to
this Stipulation.

 

13.                                 This
Stipulation contains the entire agreement between the parties and supersedes
and replaces any and all prior or contemporaneous agreements or understandings,
written or oral, with regard to the matters set forth in it.  This Stipulation may be amended or modified
in whole or in part at any time only by an agreement in writing, executed in
the same manner as this Stipulation.

 

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14.                                 Plaintiff
shall be entitled to collect from Defendant any further attorney’s fees and
costs that he may incur in the future as the result of any Default, including,
without limitation, any enforcement of the Amended Judgment.

 

15.                                 The
parties and their attorneys have carefully and fully reviewed this
Stipulation.  The parties and their
attorneys have revised, or had an opportunity to revise, this Stipulation.  Accordingly, the normal rule of construction
to the effect that any ambiguities are to be resolved against the drafting
party shall not be utilized in the interpretation of this Stipulation.

 

16.                                 If
any term, provision, covenant or condition of this Stipulation is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the provisions shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

 

17.                                 The
parties agree to execute any document that is necessary to effectuate the
terms, conditions, covenants and purposes of this Stipulation.

 

 

DATED:  May 11, 2005

 

 

	
   

  	
   

  	
  /s/ JOHN
  ARRILLAGA

  
	
   

  	
   

  	
  JOHN
  ARRILLAGA,

  
	
   

  	
   

  	
  Trustee of
  the John Arrillaga

  
	
   

  	
   

  	
  Survivor’s
  Trust UTA Dated 7/20/77

  

 

 

	
  DATED: March
  11, 2005

  	
   

  	
  MICRO
  COMPONENT TECHNOLOGY INC.

  
	
   

  	
   

  	
  WHICH DOES
  BUSINESS IN CALIFORNIA AS

  
	
   

  	
   

  	
  MINNESOTA
  MICRO COMPONENT

  
	
   

  	
   

  	
  TECHNOLOGY,
  INC., a Minnesota corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ THOMAS
  P. MAUN

  
	
   

  	
   

  	
  Print Name:

  	
  Thomas P.
  Maun

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
						

 

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APPROVED AS TO FORM AND CONTENT:

 

	
  MITCHELL & HERZOG LLP

  
	
   

  
	
   

  
	
  By

  	
  /s/ GREGORY K. KLINGSPORN

  	
   

  
	
   

  	
  GREGORY K. KLINGSPORN

  
	
   

  	
  Attorneys for Defendant

  
	
   

  
	
   

  
	
  McGRANE, GREENFIELD,

  HANNON & HARRINGTON LLP

  
	
   

  
	
   

  
	
  By

  	
  /s/ BERNARD S. GREENFIELD

  	
   

  
	
   

  	
  BERNARD S. GREENFIELD

  
	
   

  	
  Attorneys for Plaintiff

  

 

6EXHIBIT
NO. 10.2

 

CONSULTING AGREEMENT

 

THIS AGREEMENT is made and entered into this 20th
day of May, 2005, by and between Thomas Maun, a resident of Minnesota (“Consultant”),
and Micro Component Technology, Inc., a Minnesota corporation (the “Company”).

 

In consideration of the mutual terms and
conditions contained herein, the parties hereby agree as follows:

 

1.     Consulting Services.  Consultant shall act as the Chief Financial
Officer of the Company.  Consultant shall
provide such services and perform such tasks reasonably related to the
foregoing as are assigned to him by the Company from time to time.  Consultant will be available to work at least
20 hours per week during the first three months of this Agreement, and 10 hours
per week thereafter.  Consultant shall
use his best efforts and shall at all times perform his services ably,
diligently and in compliance with all known laws and regulations.  Consultant shall have no authority over, and
shall not be responsible for payment of, payroll or payroll taxes, and shall
not be a “responsible person” as defined by the Internal Revenue code with
respect to nonpayment of any such trust fund taxes.

 

2.     Fees.  In consideration of his performance of
services under this Agreement, the Company shall pay Consultant a fee of $50.00
per hour worked.  Consultant shall submit
hours worked to the Company and Company shall pay within 5 working days of
submission that this Agreement is in effect. 
Consultant shall be reimbursed for reasonable and customary out of
pocket expenses including mileage as incurred at the standard IRS rates.

 

1

 

3.     Status of Consultant.  Consultant is an independent contractor and
not an employee.  Nothing in this
Agreement shall be construed to create any other type of relationship between
the parties.  Consultant shall not be
eligible for coverage under any of the Company’s employee benefit plans, except
that Company shall maintain family coverage for employee under Company’s group
health insurance plan. Consultant shall not be eligible for workers’
compensation benefits from the Company or its insurer.

 

4.     Tax Matters.  The Company shall not withhold federal or
state income taxes on any fees paid to Consultant and shall not pay FICA or any
other payroll tax on any fees paid to Consultant.  Consultant understands that it is his
obligation to pay income taxes and self-employment taxes on the fees paid by
the Company and he agrees to indemnify and hold the Company harmless against
any such taxes or any interest or penalties payable therewith.

 

5.     Term and Termination.  This Agreement shall become effective as of
the date hereof, and shall continue for a term of six months thereafter.  It shall renew on a monthly basis thereafter
until one party gives the other thirty days written notice of non-renewal.  Prior to that time, this Agreement may be
terminated as follows:  (a) by the
Company at any time in the event of Consultant’s death or disability, (b) by
either party at any time upon 30 days advance written notice to the other
party, or (c) by either party at any time in the event of a breach by the other
party of any material term or condition contained herein, or (d) by Consultant
immediately if he determines that the Company is unable to pay its obligations
in the normal course.

 

2

 

6.     Confidential Information.  Consultant acknowledges that he has no
ownership in and agrees to maintain the confidentiality and refrain from any
unauthorized use of any trade secrets, confidential information or other
proprietary data of the Company, including but not limited to manuals,
marketing plans, pricing policies, financial statements or other
information.  Upon termination of this Agreement,
or earlier upon the Company’s request, Consultant shall return all documents or
other tangible materials which contain such information, including all copies
or excerpts thereof.  The provisions of
this section 6 shall expressly survive termination or expiration of this
Agreement.

 

7.     Noncompetition.  For the term of this Agreement, Consultant
shall not, directly or indirectly, whether as consultant, employee, director,
stockholder, proprietor, partner or creditor of any entity, engage in the State
of Minnesota in any business substantially similar, in whole or in part, to the
business of the Company.

 

8.     Assignment.  This Agreement may not be assigned by either
party without the advance written consent of the other party.  Subject to the foregoing, this Agreement
shall be binding upon, and inure to the benefit of, the heirs, representatives,
successors, and permitted assigns of the parties.

 

9.     Interpretation and
Amendment.  This Agreement shall be
interpreted in accordance with Minnesota law. 
This Agreement constitutes the entire agreement of the parties on the
subject matter hereof, superseding any prior oral or written agreements.  This Agreement can be amended or modified
only in a writing signed by the party to be bound.

 

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10.                                               Indemnification.  During the term of this Agreement, Company
shall indemnify Consultant to the fullest extent permissible under Minnesota
statutes section 302A.521 against liability, claims or losses arising
against Consultant by reason of Consultant’s official capacity as Chief
Financial Officer of Company.  Further,
during the term of this Agreement, Company will maintain directors and officers
liability insurance equivalent to that which it has in force as of the date of
this Agreement, and will, at all time, list Consultant as one of the insured
officers.

 

11.                                               Option.  The 90 day exercise period upon termination
in the option grants to Consultant under Company’s stock option plan, shall not
be deemed to begin until the termination of this Agreement for any reason.

 

IN WITNESS WHEREOF, the parties have caused
the execution of this Agreement as of the day and year first above written.

 

 

	
   

  	
  /s/ Thomas P. Maun

  	
   

  
	
   

  	
  Thomas Maun

  
	
   

  	
   

  
	
   

  	
  Micro Component Technology, Inc.

  
	
   

  	
   

  
	
   

  	
  By: /s/ Roger E. Gower

  	
   

  
	
   

  	
  Its: Chief Executive Officer

  
				

 

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