Document:

EXHIBIT 10.1

 

STOCK AWARD AGREEMENT

 

This Stock Award
Agreement (this “Agreement”),
dated as of DATE (the “Effective Date”), is between SoftBrands,
Inc., a Delaware corporation (the “Company”)
and EMPLOYEE NAME,
(“Participant”).  This Stock Award is granted under the
SoftBrands, Inc. 2001 Stock Incentive Plan (the “Plan”) and is subject to the terms of that Plan.  Capitalized terms used in this Agreement and
not defined in this Agreement have the meanings assigned to them in the
Plan.  This Agreement represents the
Company’s unfunded and unsecured promise to issue Common Stock at a future
date, subject to the terms of this Agreement and the Plan.

 

1.             Award.

 

The Company hereby grants Participant, subject to the
terms and conditions of this Agreement and the Plan, a stock award (the “Stock  Award”)
with respect to # OF SHARES
shares of the Common Stock, $.01 par value (the “Shares”), of the Company . 
The Stock Award represents the right to receive the Shares only when,
and with respect to the number of Shares to which, the Stock Award has vested
(the “Vested Shares”).  The Stock Award is subject to the terms and
conditions set forth in this Agreement and in the Plan.  A copy of the Plan will be furnished upon
request of Participant.

 

2.             Vesting.

 

Subject to the terms and conditions of this Agreement
and the Plan, the Stock Award shall vest and be converted into an equivalent
number of shares that will be distributed to the Participant as follows:

 

	
  On or after Each of the Following Dates

  	
   

  	
  Percentage of Shares that Vest

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First Anniversary of the Effective Date

  	
   

  	
  25

  	
  %

  
	
  Second Anniversary of the Effective Date

  	
   

  	
  25

  	
  %

  
	
  Third Anniversary of the Effective Date

  	
   

  	
  25

  	
  %

  
	
  Fourth Anniversary of the Effective Date

  	
   

  	
  25

  	
  %

  

 

3.             Termination
of Stock Award.

 

(a)           Except as
provided in subsections (b) below, a Participant’s rights under this Agreement
with respect to the Stock Award shall terminate at the earlier of (i) the time
such Stock Awards are converted into Vested Shares, or (ii) the termination of
Participant’s employment with the Company. 
Upon termination of this Agreement in accordance with clause (ii) above,
the Participant’s rights to all of the Shares subject to the Stock Award not
vested on the date that Participant ceases to be an employee shall be
immediately and irrevocably forfeited and the Participant will retain no rights
with respect to the forfeited Shares.

 

(b)           Notwithstanding
the provisions of Section 3(a)(ii) above, in the event of termination of
Participant’s employment with the Company as a result of Participant’s death or
disability (within the meaning of Code Section 22(e)(3)) while in the employ of

 

 

the Company, the next vesting date for the Stock
Award, as set out in Section 2(a) above, shall accelerate by twelve (12) months
as of such date of termination.  The
Participant’s rights in any unvested shares subject to this Stock shall
terminate at the time Participant ceases to be an employee.

 

4.             Additional
Restrictions on Transfer of Stock Award.

 

During the lifetime of Participant, this Stock Award
cannot be sold, assigned, transferred, gifted, pledged, hypothecated or in any
manner encumbered or disposed of at any time prior to delivery of the Vested
Shares, other than by will or the laws of descent and distribution.

 

5.             Conversion
of Stock Award to Shares; Responsibility for Taxes.

 

(a)           Provided
Participant has satisfied the requirements of Section 5(b) below, after the
vesting of the Stock Award with respect to Vested Shares, the Vested Shares
will be distributed to Participant or, in the event of Participant’s death, to
Participant’s legal representative, as soon as practicable. The distribution to
the Participant, or in the case of the Participant’s death, to the Participant’s
legal representative, of Vested Shares shall be evidenced by a stock certificate,
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company, or other appropriate means as determined by the
Company.  In the event ownership or
issuance of Vested Shares is not feasible due to applicable exchange controls,
securities regulations, tax laws or other provisions of applicable law, as
determined by the Company in its sole discretion, Participant, or in the event
of Participant’s death, the Participant’s legal representative, shall receive
cash proceeds in an amount equal to the value of the Vested Shares otherwise
distributable to Participant, net of the satisfaction of the requirements of
Section 5(b) below.

 

(b)           By
signing this Agreement, Participant agrees that the Company may withhold from the
Participant’s wages or other cash compensation, or at the sole election of the
Company from Vested Shares to be distributed to Participant in accordance with
Section 5(a), all income tax (including federal, state and local taxes), social
insurance, payroll tax or other tax-related withholding (“Tax Related Items”)
due from the Company or the subsidiary that is the Participant’s actual
employer. In this regard, Participant authorizes the Company or the Participant’s
actual employer to withhold all applicable Tax Related Items legally payable by
Participant from Participant’s wages or other cash compensation payable to
Participant by the Company or the Participant’s actual employer.  To the extent that the Company determines
that it is not feasible to withhold from wages, or not permissible under
applicable law to withhold in Shares, then prior to the issuance of Vested
Shares Participant shall pay, or make adequate arrangements satisfactory to the
Company or to the Participant’s actual employer (in their sole discretion) to
satisfy all withholding obligations of the Company and/or the Participant’s
actual employer. Participant shall pay to the Company or to the Participant’s
actual employer any amount of Tax Related Items that the Company or the
Participant’s actual employer may be required to withhold as a result of
Participant’s receipt of the Stock Award and the vesting of the Vested Shares
that cannot be satisfied by the means previously described. The Company may
refuse to deliver Vested Shares to Participant if Participant fails to comply
with Participant’s obligation in connection with the Tax Related Items as
described herein.

 

2

 

Regardless of any action
the Company or the subsidiary of the Company that is Participant’s actual
employer takes with respect to any or all Tax Related Items, Participant
acknowledges that the ultimate liability for all Tax Related Items legally due
by Participant is and remains Participant’s responsibility and that the Company
and/or the Participant’s actual employer (i) make no representations or
undertakings regarding the treatment of any Tax Related Items in connection
with any aspect of the Stock Award, including the grant of the Stock Award, the
vesting of Stock Award with respect to Shares, the conversion of the Stock
Award into Shares or the receipt of an equivalent cash payment, the subsequent
sale of any Shares acquired at vesting and the receipt of any dividends; and
(ii) do not commit to structure the terms of the grant or any aspect of the
Stock Award to reduce or eliminate the Participant’s liability for Tax Related
Items.

 

6.             Miscellaneous.

 

(a)           Plan
Provisions Control.  In the event
that any provision of this Agreement conflicts with or is inconsistent in any
respect with the terms of the Plan, the terms of the Plan shall control.

 

(b)           Rights
of Stockholders.  Prior to the
vesting a Stock Award with respect to Shares, and prior to the receipt by
Participant, Participant’s legal representative or a permissible assignee of
the Vested Shares pursuant to Section 5, neither Participant, Participant’s
legal representative nor a permissible assignee of the Stock Award shall be or
have any of the rights and privileges of a stockholder of the Company with
respect to the Shares issuable to Participant pursuant to the terms of this
Agreement.  Participant shall not be
entitled to receive dividend equivalents on the Stock Award.

 

(c)           Distribution
and Adjustment.  In accordance with
Section 4(c) of the Plan, the Stock Award is subject to adjustment in the
event that any distribution, recapitalization, reorganization, merger or other
event covered by Section 4(c) of the Plan shall occur.

 

(d)           No
Right to Employment.  The grant of
this Stock Award shall not be construed as giving Participant the right to be
retained in the employ of the Company or any Affiliate, or as giving a director
of the Company or an Affiliate the right to continue as a director of the
Company or an Affiliate with, the Company or an Affiliate, nor will it affect
in any way the right of the Company or an Affiliate to terminate such
employment or position at any time, with or without cause.  In addition, the Company or an Affiliate may
at any time dismiss Participant from employment, or terminate the term of a director
of the Company or an Affiliate, free from any liability or any claim under the
Plan or this Agreement.  Nothing in this Agreement shall confer on any person
any legal or equitable right against the Company or any Affiliate, directly or
indirectly, or give rise to any cause of action at law or in equity against the
Company or an Affiliate.  This Stock
Award shall not form any part of the wages or salary of Participant for
purposes of severance pay or termination indemnities, irrespective of the reason
for termination of employment.  Under no
circumstances shall any person ceasing to be an employee of the Company or any
Affiliate be entitled to any compensation for any loss of any right or benefit
under this Agreement or the Plan which such employee might otherwise have
enjoyed but for termination of employment, whether such compensation is claimed
by way of damages for wrongful or unfair dismissal, breach of contract or
otherwise.  By participating in the Plan,
Participant shall be deemed to have accepted all the terms and conditions of
the

 

3

 

Plan and this
Agreement and the terms and conditions of any rules and regulations adopted by
the Committee and shall be fully bound thereby.

 

(e)           Governing
Law.  The validity, construction and
effect of the Plan and this Agreement, and any rules and regulations relating
to the Plan and this Agreement, shall be determined in accordance with the
internal laws, and not the law of conflicts, of the State of Minnesota.

 

(f)            Severability.  If any provision of this Agreement is or
becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially
altering the purpose or intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction or Award, and the remainder of this
Agreement shall remain in full force and effect.

 

(g)           No
Trust or Fund Created.  Neither the
Plan nor this Agreement shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or
any Affiliate and Participant or any other person.  To the extent that any Person acquires a
right to receive payments from the Company or any Affiliate pursuant to a Stock
Award, such right shall be no greater than the right of any unsecured creditor
of the Company or any Affiliate.

 

(h)           Other
Benefits.  No compensation or benefit
awarded to or realized by Participant under the Plan or this Agreement shall be
included for the purpose of computing Participant’s compensation under any
compensation-based retirement, disability or similar plan of the Company unless
required by law or otherwise provided by such other plan.

 

(i)            Headings.  Headings are given to the Sections and
subsections of this Agreement solely as a convenience to facilitate
reference.  Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
this Agreement or any provision thereof.

 

(j)            Confidentiality.  Participant shall not disclose either the
contents or any of the terms and conditions of this Agreement to any other
person and agrees that such disclosure may result in both immediate termination
of the Stock Award without the right to exercise any part thereof and
termination of employment with the Company.

 

(k)           Notices.  All notices, claims, certificates, requests,
demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given and delivered if personally delivered or if sent
by nationally recognized overnight courier, by facsimile or by registered or
certified mail, return receipt requested and postage prepaid, addressed as
follows:

 

	
  (i)

  	
   

  	
  If
  to the Company, to it at:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SoftBrands, Inc.

  
	
   

  	
   

  	
  Two Meridian Crossings, Suite 800

  
	
   

  	
   

  	
  Minneapolis, MN 55423

  
	
   

  	
   

  	
  Attn:  Vice President – Human Resources

  

 

4

 

(ii)           If to
Participant, to such address as most recently supplied to the Company by
Participant and set forth in the Company’s records; or

 

(iii)          To
such other address as the party to whom notice is to be given may have
furnished to the other party in writing in accordance with this
Section 6(k).

 

Any such notice or communication shall be deemed to
have been received (i) in the case of personal delivery, on the date of
such delivery (or if such date is not a business day, on the next business
day), (ii) in the case of nationally-recognized overnight courier, on the
next business day after the date sent, (iii) in the case of facsimile
transmission, when received (or if not sent on a business day, on the next
business day after the date sent) and (iv) in the case of mailing, on the
third business day following the date on which the piece of mail containing
such communication is posted.

 

(l)            Waiver
of Breach. The waiver by either party of a breach of any provision of this
Agreement must be in writing and shall not operate or be construed as a waiver
of any other or subsequent breach.

 

(m)          Undertaking.  Both parties hereby agree to take whatever
additional actions and execute whatever additional documents either party may
in their reasonable judgment deem necessary or advisable in order to carry out
or affect one or more of the obligations or restrictions imposed on the other
party under the provisions of this Agreement.

 

(n)           Counterparts.  This Agreement may be executed in one or more
counterparts, and each such counterpart shall be deemed to be an original, but
all such counterparts together shall constitute but one agreement.

 

(o)           Entire
Agreement.  This Agreement (and the
other writings incorporated by reference herein, including the Plan)
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior or contemporaneous written or
oral negotiations, commitments, representations and agreements with respect
thereto.

 

IN WITNESS
WHEREOF, the Company and Participant have executed
this Agreement on the date set forth in the first paragraph.

 

 

	
   

  	
  SOFTBRANDS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  David G. Latzke 

  	
   

  
	
   

  	
  Title:

  	
  SVP & CFO 

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  	
  EMPLOYEE NAME

  	
   

  
								

 

5EXHIBIT 10.2

 

STOCK
APPRECIATION RIGHTS AGREEMENT

(STOCK SETTLED)

 

This Stock Appreciation
Rights Agreement (this “Agreement”),
dated as of DATE (the “Effective Date”), is between SoftBrands,
Inc., a Delaware corporation (the “Company”)
and EMPLOYEE NAME, (“Participant”).  This Agreement is granted under the
SoftBrands, Inc. 2001 Stock Incentive Plan (the “Plan”) and is subject to the terms of that Plan.  Capitalized terms used in this Agreement and
not defined in this Agreement have the meanings assigned to them in the
Plan.  This Agreement represents the
Company’s unfunded and unsecured promise to issue Common Stock of the Company,
$.01 par value (“Shares”) at a
future date based on appreciation in the market value of such Shares from the
date of this Agreement, subject to the terms of this Agreement and the Plan.

 

1.       Award.    The Company hereby grants Participant stock
appreciation rights (the “SAR”)
with respect to # OF SHARES
shares of Common Stock (the “Award”).  The initial value of the SAR is PRICE per share (the “Grant Price”).  The Award represents the right to receive the
Shares only when, and with respect to the number of Shares to which, the Award
has vested (the “Vested Shares”).The
Award is subject to the terms and conditions set forth in this Agreement and in
the Plan.  A copy of the Plan will be
furnished upon request of Participant.

 

2.       Vesting.    Subject to the terms and conditions of this
Agreement and the Plan, the SAR awarded to Participant pursuant to this
Agreement shall vest and may be exercised by Participant with respect to the
number of Vested Shares set forth in the following schedule:

 

	
  On or after Each of the
  Following Dates

  	
   

  	
  Percentage of Shares with Respect to

  Which the SAR Is Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First Anniversary of
  the Effective Date

  	
   

  	
  25

  	
  %

  
	
  Second Anniversary of
  the Effective Date

  	
   

  	
  25

  	
  %

  
	
  Third Anniversary of
  the Effective Date

  	
   

  	
  25

  	
  %

  
	
  Fourth Anniversary of
  the Effective Date

  	
   

  	
  25

  	
  %

  

 

3.       Exercise
of SAR after Death or Termination of Employment.    The SAR shall terminate and may no longer
be exercised if Participant ceases to be employed by the Company or its
affiliates, except that:

 

(a)           If
Participant’s employment shall be terminated for any reason, voluntary or
involuntary, other than for “Cause”
(as defined in Section 3(d)) or Participant’s death or disability (within
the meaning of Code Section 22(e)(3)), Participant may at any time within
a period of ninety days after such termination exercise the SAR to the extent
the SAR was exercisable by Participant on the date of the termination of
Participant’s employment.

 

 

(b)           If
Participant’s employment is terminated for Cause, the SAR shall be terminated
as of the date of the act giving rise to such termination.

 

(c)           If
Participant shall die while the SAR is still exercisable according to its
terms, or if employment is terminated because Participant has become disabled
(within the meaning of Code Section 22(e)(3)) while in the employ of the
Company and Participant shall not have fully exercised the SAR, such SAR may be
exercised at any time within 12 months after Participant’s death or date of
termination of employment for such disability by Participant, personal
representatives, administrators or guardians of Participant, as applicable, or
by any person or persons to whom the SAR is transferred by will or the
applicable laws of descent and distribution, to the extent of the full number
of Vested Shares Participant was entitled to purchase under the SAR on
(i) the earlier of the date of death or termination of employment or (ii) the
date of termination for such disability, as applicable.

 

(d)           Notwithstanding
the above, in no case may the SAR be exercised to any extent by anyone after
the termination date of the SAR.

 

(e)           “Cause” means (i) Participant’s breach
of any contractual obligation to the Company under the terms of the Plan, a
stock option agreement or any other agreement between Participant and the
Company, or of any fiduciary duty to the Company (ii) Participant’s
conviction or plea bargain of any crime involving moral turpitude or any felony
(iii) Participant’s failure to carry out any reasonable directive of the
Company, (iv) Participant’s embezzlement of funds of the Company,
(v) any conduct by Participant which is detrimental to the Company,
(vi) any failure by Participant to comply with the policies or performance
standards of the Company, or (vii) a demonstrated lack of commitment of
Participant to the Company.

 

4.       Method
of Exercise of SAR.

 

(a)           SARs
may be exercised with respect to Vested Shares by delivery to the Company of a
written notice which shall state that Participant elects to exercise the SAR as to the number of Vested
Shares specified in the notice as of the date specified in the notice.

 

(b)           Subject to
deduction as described in Section 4(c) for withholding, upon exercise of the
SAR, the Participant shall be entitled to receive a number of Shares (“Issued
Shares”) for each Vested Share with respect to which the SAR is exercised that
is equal to (i) the excess of the Fair Market Value of one Share on the date of
exercise, over the Grant Price, divided by (ii) the Fair Market Value of one
Share on the date of exercise.  The
distribution to the Participant, or in the case of the Participant’s death, to
the Participant’s legal representative, of Issued Shares shall be evidenced by
a stock certificate, appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company, or other appropriate means as
determined by the Company.  In the event
ownership or issuance of Issued Shares is not feasible due to applicable
exchange controls, securities regulations, tax laws or other provisions of
applicable law, as determined by the Company in its sole discretion,
Participant, or in the event of Participant’s death, the Participant’s legal
representative, shall receive cash

 

2

 

proceeds in an amount equal to the value of the Issued
Shares otherwise distributable to Participant.

 

(c)           By
signing this Agreement, Participant agrees that the Company may withhold from
the Participant’s wages or other cash compensation, or at the sole election of
the Company from Issued Shares due upon exercise of the SAR, all income tax
(including federal, state and local taxes), social insurance, payroll tax or
other tax-related withholding (“Tax Related Items”) due from the Company or the
subsidiary that is the Participant’s actual employer. In this regard,
Participant authorizes the Company or the Participant’s actual employer to
withhold all applicable Tax Related Items legally payable by Participant from
Participant’s wages or other cash compensation payable to Participant by the
Company or the Participant’s actual employer. 
To the extent that the Company determines that it is not feasible to
withhold from wages, or not permissible under applicable law to withhold in
Shares, then prior to the issuance of Issued Shares or the receipt of an
equivalent cash payment as provided in Section 4(b) above, Participant shall
pay, or make adequate arrangements satisfactory to the Company or to the
Participant’s actual employer (in their sole discretion) to satisfy all
withholding obligations of the Company and/or the Participant’s actual
employer. Participant shall pay to the Company or to the Participant’s actual
employer any amount of Tax Related Items that the Company or the Participant’s
actual employer may be required to withhold as a result of Participant’s
receipt of the Award, the vesting of the Award, or exercise of the Award that
cannot be satisfied by the means previously described. The Company may refuse
to deliver Issued Shares to Participant if Participant fails to comply with
Participant’s obligation in connection with the Tax Related Items as described
herein.

 

Regardless
of any action the Company or the subsidiary of the Company that is Participant’s
actual employer takes with respect to any or all Tax Related Items, Participant
acknowledges that the ultimate liability for all Tax Related Items legally due
by Participant is and remains Participant’s responsibility and that the Company
and/or the Participant’s actual employer (i) make no representations or
undertakings regarding the treatment of any Tax Related Items in connection
with any aspect of the Award, including the grant of the Award, the vesting of
Award, the exercise of the Award or the receipt of the above cash payment; and
(ii) do not commit to structure the terms of the grant or any aspect of the
Award to reduce or eliminate the Participant’s liability for Tax Related Items.

 

5.       Additional
Restrictions on Transfer of SAR.    During
the lifetime of Participant, the SAR shall be exercisable only by Participant
and shall not be sold, assigned, transferred, gifted, pledged, hypothecated, or
in any manner encumbered or disposed of at any time prior to delivery of the Issued
Shares in accordance with Section 4, other than by will or the laws of
descent and distribution.

 

6.       Termination.    The SAR shall terminate at the close of
business five years from the date of this Agreement.

 

7.       Miscellaneous.    Plan Provisions Control.  In the event that any provision of this
Agreement conflicts with or is inconsistent in any respect with the terms of
the Plan, the terms of the Plan shall control.

 

(a)           No
Rights of Stockholders.  Prior to the
exercise of the SAR and prior to receipt by the Participant, Participant’s
legal representative or a permissible assignee of

 

3

 

Issue Shares as provided in this Agreement, neither
Participant, Participant’s legal representative nor a permissible assignee of
the SAR shall be or have any of the rights and privileges of a stockholder of
the Company with respect to this Agreement or the Shares referenced in this
Agreement.

 

(b)           Distribution
and Adjustment.  In accordance with
Section 4(c) of the Plan, the Award is subject to adjustment in the event
that any distribution, recapitalization, reorganization, merger or other event
covered by Section 4(c) of the Plan shall occur.

 

(c)           No
Right to Employment.  The grant of
the SAR shall not be construed as giving Participant the right to be retained
in the employ of the Company or any Affiliate, or as giving a director of the
Company or an Affiliate the right to continue as a director of the Company or
an Affiliate with, the Company or an Affiliate, nor will it affect in any way
the right of the Company or an Affiliate to terminate such employment or
position at any time, with or without cause. 
In addition, the Company or an Affiliate may at any time dismiss
Participant from employment, or terminate the term of a director of the Company
or an Affiliate, free from any liability or any claim under the Plan or this
Agreement.  Nothing in this Agreement shall confer on any person
any legal or equitable right against the Company or any Affiliate, directly or
indirectly, or give rise to any cause of action at law or in equity against the
Company or an Affiliate.  The SAR granted
under this Agreement shall not form any part of the wages or salary of
Participant for purposes of severance pay or termination indemnities,
irrespective of the reason for termination of employment.  Under no circumstances shall any person
ceasing to be an employee of the Company or any Affiliate be entitled to any
compensation for any loss of any right or benefit under this Agreement or the Plan
which such employee might otherwise have enjoyed but for termination of
employment, whether such compensation is claimed by way of damages for wrongful
or unfair dismissal, breach of contract or otherwise.  By participating in the Plan, Participant shall
be deemed to have accepted all the terms and conditions of the Plan and this
Agreement and the terms and conditions of any rules and regulations adopted by
the Committee and shall be fully bound thereby.

 

(d)           Governing
Law.  The validity, construction and
effect of the Plan and this Agreement, and any rules and regulations relating
to the Plan and this Agreement, shall be determined in accordance with the
internal laws, and not the law of conflicts, of the State of Minnesota.

 

(e)           Severability.  If any provision of this Agreement is or
becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended
to conform to applicable laws, or if it cannot be so construed or deemed
amended without, in the determination of the Committee, materially altering the
purpose or intent of the Plan or the Award, such provision shall be stricken as
to such jurisdiction or Award, and the remainder of this Agreement shall remain
in full force and effect.

 

(f)            No
Trust or Fund Created.  Neither the
Plan nor this Agreement shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or
any Affiliate and Participant or any other person.  To the extent that any Person acquires a
right to receive payments from the Company or

 

4

 

any Affiliate pursuant to an Award, such right shall
be no greater than the right of any unsecured creditor of the Company or any
Affiliate.

 

(g)           Other
Benefits.  No compensation or benefit
awarded to or realized by Participant under the Plan or this Agreement shall be
included for the purpose of computing Participant’s compensation under any
compensation-based retirement, disability or similar plan of the Company unless
required by law or otherwise provided by such other plan.

 

(h)           No
Fractional Shares.  No fractional
Shares shall be issued or delivered pursuant to the Plan or this Agreement, and
the Committee shall determine whether cash shall be paid in lieu of any
fractional Shares or whether such fractional Shares or any rights thereto shall
be canceled, terminated or otherwise eliminated.

 

(i)            Headings.  Headings are given to the Sections and
subsections of this Agreement solely as a convenience to facilitate
reference.  Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
this Agreement or any provision thereof.

 

(j)            Confidentiality.  Participant shall not disclose either the
contents or any of the terms and conditions of this Agreement to any other
person and agrees that such disclosure may result in both immediate termination
of the SAR without the right to exercise any part thereof and termination of
employment with the Company.

 

(k)           Notices.  All notices, claims, certificates, requests,
demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given and delivered if personally delivered or if sent
by nationally recognized overnight courier, by facsimile or by registered or
certified mail, return receipt requested and postage prepaid, addressed as
follows:

 

	
  (i)

  	
   

  	
  If to the Company, to it at:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SoftBrands, Inc.

  
	
   

  	
   

  	
  Two Meridian Crossings, Suite 800

  
	
   

  	
   

  	
  Minneapolis, MN 55423

  
	
   

  	
   

  	
  Attn: Vice President – Human Resources

  

 

(ii)           If
to Participant, to such address as most recently supplied to the Company by
Participant and set forth in the Company’s records; or

 

(iii)          to
such other address as the party to whom notice is to be given may have
furnished to the other party in writing in accordance with this
Section 7(l).

 

Any such notice or communication shall be deemed to
have been received (i) in the case of personal delivery, on the date of
such delivery (or if such date is not a business day, on the next business
day), (ii) in the case of nationally-recognized overnight courier, on the
next business day after the date sent, (iii) in the case of facsimile transmission,
when received (or if not sent on a business day, on the next business day after
the date sent) and (iv) in the case of mailing, on the

 

5

 

third business day following the date on which the piece of mail
containing such communication is posted.

 

(l)            Waiver
of Breach. The waiver by either party of a breach of any provision of this
Agreement must be in writing and shall not operate or be construed as a waiver
of any other or subsequent breach.

 

(m)          Undertaking.  Both parties hereby agree to take whatever
additional actions and execute whatever additional documents either party may
in their reasonable judgment deem necessary or advisable in order to carry out
or effect one or more of the obligations or restrictions imposed on the other
party under the provisions of this Agreement.

 

(n)           Counterparts.  This Agreement may be executed in one or more
counterparts, and each such counterpart shall be deemed to be an original, but
all such counterparts together shall constitute but one agreement.

 

(o)           Entire
Agreement.  This Agreement (and the
other writings incorporated by reference herein, including the Plan)
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior or contemporaneous written or
oral negotiations, commitments, representations and agreements with respect
thereto.

 

IN WITNESS
WHEREOF, the Company and Participant have executed
this Agreement on the date set forth in the first paragraph.

 

 

	
   

  	
  SOFTBRANDS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  	
  David G. Latzke 

  	
   

  
	
   

  	
  Title:

  	
  SVP & CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  EMPLOYEE NAME

  	
   

  
								

 

6

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