Document:

EXHIBIT
10.23

JWH Holding Company, LLC

Economic Profit Plan Document

Approved as of December 20, 2006

I.              The
Plan

The JWH Holding
Company, LLC Economic Profit Plan (EPP) is intended to stimulate and reinforce
executive actions that support and assure the attainment of key corporate
objectives.  The Plan facilitates these
objectives by providing executive employees the opportunity to earn additional
cash compensation if the Company attains its financial and operating objectives
during the plan year and the employee attains required individual performance
levels.

II.            Definitions

1.                                       Base Salary means an Employee’s annual base salary rate but
exclusive of commission, overrides, incentive and other cash and non-cash
payments, as of the end of the Plan Year.

2.                                       Board means the Board of Directors of the Company, as it is
constituted from time to time.

3.                                       Change in Control applies to those
executives who have a change in control provision in their employment
agreement.

4.                                       Company means JWH Holding Company, LLC and its wholly owned business
units.

5.                                       Committee means the Compensation Committee of the Board of
Directors for Walter Industries, Inc., as it is constituted from time to time.

6.                                       Cost of Capital means the overall costs of combined debt and
equity capital used to finance operations. 
The cost of capital is determined by the return that is required by
investors to compensate them for their risk. 
For purposes of the economic profit plan, the cost of capital will be
calculated as the weighted average sum of the cost of equity and the cost of
debt (excluding any asset-backed debt or intercompany debt) as determined
annually by the Committee.

7.                                       Employee or Employees means an Employee or Employees of the
Company or its business units.

8.                                       Employee means any regular, full-time salaried employee
(including any officer) of the Company.

9.                                       Incentive Pool means the fund created in accordance with
Section VII of the Plan.

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10.                                 Individual Performance Goal means the performance goals and
their measures that are designated for all Participants or individual
Participants so that, if each is attained at 100%, the Participant could
receive the Target Incentive Opportunity for such Participant.

11.                                 Officer means an executive officer of the Company, any
Subsidiary President and any Subsidiary Vice-President who reports directly to
the Subsidiary President or who serves on the Subsidiary Executive Committee.

12.                                 Participant or Participants means an Employee or Employees
of the Company, as more fully described in Section IV, who are specifically
designated in writing as being eligible to participate in the Plan.

13.                                 Plan means the Company’s Economic Profit Plan, as it may be
modified from time to time.

14.                                 Plan Year means the calendar year unless the Company
designates a different fiscal year, in which case the Plan Year will be the
Company’s fiscal year.

15.                                 Subsidiary means a wholly owned subsidiary of the Company
that has been declared by the Committee to be eligible to participate in the
Plan.

16.                                 Subsidiary Employee or Employees means an Employee or
Employees of a Subsidiary.

17.                                 Target Incentive Opportunity means additional cash
compensation, expressed as a percent of base salary, or equivalent that may be
recommended as an incentive award if all targets are attained at 100%.  The actual amount of compensation could
increase or decrease as more fully described in Section VIII.

III.           Administration

1.                                       The
Plan shall be administered by the Committee.

2.                                       The
Committee shall have sole and complete authority to make awards under the Plan
from funds authorized by the Board and to adopt, alter and repeal such
administrative rules, guidelines and practices governing the operation of the
Plan, as it shall deem advisable from time to time, and to interpret the terms
and provisions of the Plan.

A majority of the Committee shall constitute a quorum,
and the acts of a majority of the members present at any meeting at which a
quorum is present, or acts approved in writing by a majority of the Committee
without a meeting, shall be the acts of the Committee.

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3.                                       Nothing
in the Plan or plan document and no representations by the Company shall be
construed as creating a contract, oral or written, that guarantees employment
of an individual for any period of time nor is there created any entitlement to
receive an incentive payment except as determined by the Committee.  The decisions and determinations of the
Committee shall be final and binding on all Participants.

IV.           Eligible
Participants

1.                                       The
following Employees of the Company are eligible to participate in the Plan.

a.             Officer Group

·              Executive Officers of the Company

·              Subsidiary Presidents

·                                          Subsidiary
Vice-Presidents who report directly to the Subsidiary   President or serve on the Subsidiary
Executive Committee

b.             Corporate and
Subsidiary Staff Group

·                                          Corporate
and Subsidiary Employees who hold positions that are equal to or greater than
salary grade 9, or the equivalent, under the Company’s job evaluation program.

·                                          Other
positions designated by the CEO of the Company and approved by the Committee,
e.g. top division sales and construction positions, branch managers.

2.                                       Unless
specifically approved by the Committee, e.g. Homes sales contests, participants
in the Plan may not take part in any other cash incentive or bonus plan that is
sponsored by the Company.

V.            Performance
Goals

1.                                       The
Company’s EPP Bonus Pool

As soon as practicable at or near the beginning of the
Plan Year, the Committee will establish the cost of capital.  The Committee will have the sole power and
authority to review and adjust the cost of capital during the Plan Year because
of unanticipated events, including, but not limited to, windfall gains,
disposal of significant assets, catastrophes and other nonrecurring events.  The funding above the cost of capital is
utilized 100% to fund up to the target incentive opportunity, and then the
excess funding is shared between the Company and participants on a ratio established
for each pool (branch manager, division, homes corporate, FSG corporate or JWH
Holding Company) on an uncapped basis.  A
percent of the

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JWH Holding Company economic profit is used to fund a discretionary
pool for use throughout JWH Holding Company by the Executive Committee.

2.                                       Individual
Performance Goals (IPG) — Employees’ target incentive opportunities are
adjusted based on their results relative to their IPGs.

As soon as practicable at or near the beginning of the Plan Year, each
Participant and the Participant’s manager will establish three Individual
Performance Goals for each participant.  The
Participant and the manager will assign relative weights to each goal so that
the sum of all weighting factors is equal to 1.0.  The goals will be reviewed and approved by
the next level of executive management.

Individual Performance Goals will focus on key executive actions and
accomplishments within the executive’s area of responsibility that support the
Company’s key objectives.  The goals, in
order to be effective, must be specific and measurable, to the greatest extent
possible.  Examples of Individual
Performance Goals for the appropriate line managers will generally relate to
capital expenditures, working capital, return on net assets, productivity
enhancement or specific projects related to the Employee’s area of
responsibility.

A Participant’s manager shall have the authority, with the written
approval of the next level of executive management, to review and adjust the
Individual Performance Goals during the Plan Year because of unanticipated
events, including, but not limited to, windfall gains, disposal of significant
assets, catastrophes and other nonrecurring events.

VI.           Target
Incentive Opportunity

1.                                       Participants
in the Plan will have Target Incentive Opportunities, as determined by the
Committee or in accordance with the Company’s compensation policies, for each
participant as of the beginning of the Plan Year.

2.                                       A
Target Incentive Opportunity represents the amount of additional cash
compensation that will be recommended for payment if all the Company and
Individual Performance Targets are attained at 100%.

3.                                       Actual
payments may decrease from Target Incentive Opportunity depending on actual
performance compared to Individual Performance Goals and final determination by
the Committee.  The funding above target
is shared by the Company with the employees. 
The maximum award is uncapped based on the difference between the Cost
of Capital and Return on Invested Capital factored for Individual Performance
Goal attainment as determined by Company compensation policies.  The JWH Holding Company’s Human Resources
Department must approve changes to salary grade.

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VII.         Incentive
Pool

At the beginning of each
Plan Year, the Company will establish an Incentive Pool derived from the
aggregate of the Base Salaries of the Participants times their Target Incentive
Opportunity.  During the course of the
year the Company may adjust the size of the Incentive Fund to reflect projected
year-end performance, participant changes and resulting year-end incentive
payments.

VIII.        Incentive
Awards

1.                                       A
Participant’s incentive award will be calculated by the sum of the following
components:

a.                                       Corporate
performance for return on invested capital versus cost of capital to fund the
pool.

b.                                      Individual
performance versus individual performance goals to generate the participant’s
share of the pool.

2.                                       The
Committee shall set the cost of capital at the beginning of the Plan Year,
which will remain the same for the Plan Year unless changed by the Committee.

3.                                       The
Committee shall approve the target incentive opportunities for employees at the
beginning of the Plan Year.

4.                                       The
Participant’s manager shall recommend at the beginning of the Plan Year,
criteria to measure individual performance goals, which criteria shall be
approved by the next level of executive management.

5.                                       Minimum
Individual Performance Required.

Performance Appraisal Rating: A Participant who is
rated “Needs Development” under the Company’s performance appraisal program is
not eligible for an incentive payment until performance improves to meet
acceptable standards.  A Participant, who
is not rated due to being new in the position, is eligible for an incentive
payment as long as he is progressing satisfactorily towards expected standards
and is meeting the other requirements of the Plan.

6.                                       Minimum
Financial Performance Required

a.                                       No
incentive payments will be paid if actual return on invested capital is less
than the cost of capital for any pool.

b.             Individual performance
will be used to adjust payments from target.

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c.                                       If
a business unit generates economic profit, it can receive a pool payment even
though JWH Holding Company does not earn an economic profit.

7.                                       Incentive
awards may not be paid until the completion of the Company’s audited financial
statements corresponding to the Plan Year and the approval of the Company’s
Audit Committee has been received.

8.                                       The
calculated awards will be recommended for payment to the Committee.  The committee will not use discretion to
increase the size of the award.

IX.           Method
of Payment

1.                                       Each
incentive award, once approved, may be paid to the Participant on the next
payroll cycle, less required withholdings, or by separate check.

2.                                       Pro
rata payments.

a.                                       A
Participant must be an Employee at the time the bonus is paid in order to
receive an incentive payment under the Plan. 
A Participant whose employment is terminated before the end of the Plan
Year will not be eligible for an incentive award for that Plan Year unless the
termination was the result of death, disability or retirement under a Company
sponsored retirement plan, in which case, a pro rata payment at target may be
recommended providing the Participant worked at least three months during the
Plan Year. The Plan defines “retirement” as the termination of the EPP
participant’s employment with the Company and its subsidiaries other than for
cause and either a) on or after the date on which the employee attains the age
of 60, or, b) on a date on which the sum of the employee’s age and completed
years of employment with the Company and its subsidiaries is at least eighty
(80).”

b.                                      Participants
who are hired, transferred or promoted into an eligible position may be
recommended for a pro rata payment, based on their time in the eligible
position, as long as they have worked in that position at least three months
during the Plan Year.  Individual
Performance Goals must be established for the new position at the time of hire,
transfer or promotion.

c.                                       Participants
who are promoted or transferred from one incentive position to another
incentive position will receive a pro rata payment based on the period of time
they were in each position.  Any pro rata
payment from Subsidiary Performance will be measured and apportioned at the end
of the Plan Year.  Individual Performance
Goals must be set and measured for the period in each position.

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d.                                      If
there is a qualifying termination following a change in control of the Company
or subsidiary, a pro rata portion of the target amount is paid out.

X.            Effective
Date and Duration

1.                                       The
Plan shall be effective January 1, 2007.

2.                                        The
Committee may discontinue the Plan, in whole or in part, at any time, or may,
from time to time, amend the Plan in any respect that the Committee may deem to
be advisable.

 7Exhibit
10.1

AMENDED AND RESTATED

EMPLOYMENT AND NONCOMPETITION AGREEMENT

                THIS AMENDED AND RESTATED
EMPLOYMENT AND NONCOMPETITION AGREEMENT (the “Agreement”) is made and entered
into as of December 13, 2006, by and among Avocent Huntsville Corp., an Alabama
corporation (“Employer”), Avocent Corporation, a Delaware corporation, and
Edward H. Blankenship  (the “Employee”).

RECITALS

                WHEREAS, Avocent Corporation and
its affiliates (collectively referred to in this Agreement as “Avocent”) are
engaged in the business of designing,
manufacturing, and selling connectivity and centralized management of
information technology infrastructure solutions for enterprise data centers, branch offices, and small to medium size
businesses worldwide;

                WHEREAS, Employee, Employer, and
Avocent Corporation entered into that certain Employment and Noncompetition
Agreement dated July 19, 2005 (the “2005 Employment Agreement”); and

                WHEREAS, Employee, Employer, and
Avocent Corporation now wish to amend and restate the 2005 Employment Agreement
with this Amended and Restated Employment and Noncompetition Agreement, and
Employee is willing to accept employment as Avocent’s Senior Vice President of
Finance, Chief Financial Officer, and Assistant Secretary on the terms and
subject to the conditions set forth in this Agreement.

AGREEMENT

                THE PARTIES HERETO AGREE AS FOLLOWS:

                1.             DUTIES.  During the term of this Agreement, the
Employee agrees to be employed by Employer and to serve Avocent as its Senior
Vice President of Finance, Chief Financial Officer, and Assistant
Secretary.  The Employee shall devote
such of his business time, energy, and skill to the affairs of Avocent and
Employer as shall be necessary to perform the duties of Senior Vice President
of Finance, Chief Financial Officer, and Assistant Secretary.  The Employee shall report to the Chief
Executive Officer and to the President of Avocent Corporation and to the Board
of Directors of Avocent Corporation, and at all times during the term of this
Agreement, the Employee shall have powers and duties at least commensurate with
his position as Senior Vice President of Finance, Chief Financial Officer, and
Assistant Secretary of Avocent Corporation.

                2.             TERM OF EMPLOYMENT.

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

                                                (a)           “TERMINATION FOR CAUSE” shall mean
termination by the Employer or Avocent Corporation of the Employee’s employment
with the Employer or Avocent by reason of the Employee’s willful dishonesty
towards, fraud upon, or deliberate injury or attempted

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injury to, the Employer
or Avocent or by reason of the Employee’s willful material breach of this
Agreement which has resulted in material injury to the Employer or Avocent.

(b)   “TERMINATIONS OTHER THAN FOR
CAUSE” shall mean termination by the Employer or Avocent Corporation of the
Employee’s employment with the Employer or Avocent (other than in a Termination
for Cause) and shall include any constructive termination of the Employee’s
employment by reason of material breach of this Agreement by the Employer or
Avocent, such constructive termination to be effective upon thirty (30) days
written notice from the Employee to the Employer of such constructive
termination.

(c)           “VOLUNTARY
TERMINATION” shall mean termination by the Employee of the Employee’s
employment with the Employer or Avocent other than (i) constructive
termination as described in subsection 2.1(b), (ii) “Termination Upon a
Change in Control” as described in Section 2.1(d), and (iii) termination
by reason of the Employee’s disability or death as described in
Sections 2.5 and 2.6.

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

(e)           “CHANGE IN CONTROL”
shall mean, after the date of this Agreement, any one of the following events:

(i)    Any person (other than
Avocent Corporation) acquires beneficial ownership of Employer’s or Avocent
Corporation’s securities and is or thereby becomes a beneficial owner of
securities entitling such person to exercise twenty-five percent (25%) or more
of the combined voting power of Employer’s or Avocent Corporation’s then
outstanding stock.  For purposes of this
Agreement, “beneficial ownership” shall be determined in accordance with
Regulation 13D under the Securities 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, whose ownership of Employer’s or Avocent Corporation’s
securities would be required to be reported under such Regulation 13D, or
any similar successor regulation or rule.

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

(iii)  Avocent Corporation’s
stockholders approve:

(1)           any consolidation or
merger of Avocent Corporation in which Avocent Corporation is not the
continuing or surviving corporation or pursuant to which shares of Avocent
Corporation common stock would be converted into cash, securities or other
property, other than a merger or consolidation of Avocent Corporation in which
the holders of Avocent Corporation’s common stock immediately prior to the
merger or consolidation have 

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substantially the same proportionate ownership and voting control of
the surviving corporation immediately after the merger or consolidation; or

(2)           any sale, lease,
exchange, liquidation or other transfer (in one transaction or a series of
transactions) of all or substantially all of the assets of Avocent Corporation.

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

2.2           TERM.  The term of employment of the Employee by the
Employer under this Agreement shall begin on the date of this Agreement, and
end when such employment is terminated under any of the provisions of this
Agreement.

2.3           TERMINATION FOR
CAUSE.  Termination For Cause may be
effected by the Employer at any time during the term of this Agreement and
shall be effected by thirty (30) days written notification to the Employee from
the Board of Directors of Avocent Corporation stating the reason for
termination.  Upon Termination For Cause,
the Employee immediately shall be paid 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 in accordance with the
applicable plan), any benefits under any plans of Employer or Avocent in which
the Employee is a participant to the full extent of the Employee’s rights under
such plans, accrued vacation pay and any appropriate business expenses incurred
by the Employee in connection with his duties hereunder, all to the date of
termination, but the Employee shall not be paid any other compensation or
reimbursement of any kind, including without limitation, severance
compensation.

2.4           TERMINATION OTHER
THAN FOR CAUSE.  Notwithstanding anything
else in this Agreement, the Employer may effect a Termination Other Than For
Cause at any time upon giving thirty (30) days written notice to the Employee
of such termination.  Upon any
Termination Other Than For Cause, the Employee shall immediately be paid 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 in accordance with the applicable plan), any benefits under
any plans of Employer or Avocent in which the Employee is a participant to the
full extent of the Employee’s rights under such plans, accrued vacation pay and
any appropriate business expenses incurred by the Employee in connection with
his duties hereunder, all to the date of termination, and all severance
compensation provided in Section 4.2, but no other compensation or
reimbursement of any kind.

2.5           TERMINATION BY
REASON OF DISABILITY.  If, during the
term of this Agreement, the Employee, in the reasonable judgment of the Board
of Directors of Avocent Corporation, has failed to perform his duties under
this Agreement on account of illness or physical or mental incapacity, and such
illness or incapacity continues for a period of more than six (6) consecutive
months, the Employer shall have the right to terminate the Employee’s employment
hereunder by delivery of written notice to the Employee at any time after such
six month period and 

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payment to the Employee of all accrued salary, bonus compensation to
the extent earned, additional bonus compensation in an amount equal to the average
annual bonus earned by the Employee as an employee of Avocent Corporation and
its affiliates and predecessors in the two (2) years immediately preceding the
date of termination, vested deferred compensation, if any (other than pension
plan or profit sharing plan benefits which will be paid in accordance with the
applicable plan), any benefits under any plans of Employer or Avocent in which
the Employee is a participant to the full extent of the Employee’s rights under
such plans (including having the vesting of any awards granted to the Employee
under any Avocent stock option, restricted stock, performance share, or other
equity plans deemed and treated as fully earned and accelerated), accrued
vacation pay and any appropriate business expenses incurred by the Employee in
connection with his duties hereunder, all to the date of termination, with the
exception of medical and dental benefits which shall continue for a period of
twelve (12) months from the date of such notice of termination, but the Employee
shall not be paid any other compensation or reimbursement of any kind,
including without limitation, severance compensation.

                                2.6           TERMINATION BY REASON OF DEATH.  In the event of the Employee’s death during
the term of this Agreement, the Employee’s employment shall be deemed to have
terminated as of the last day of the month during which his death occurs and
the Employer shall pay to his estate or such beneficiaries as the Employee may
from time to time designate 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 in accordance with the
applicable plan), any benefits under any plans of Employer or Avocent in which
the Employee is a participant to the full extent of the Employee’s rights under
such plans (including having the vesting of any awards granted to the Employee
under any Avocent stock option, restricted stock, performance share, or other
equity plans deemed and treated as fully earned and accelerated), accrued
vacation pay and any appropriate business expenses incurred by the Employee in
connection with his duties hereunder, all to the date of termination, but the
Employee’s estate shall not be paid any other compensation or reimbursement of
any kind, including without limitation, severance compensation.

2.7           VOLUNTARY
TERMINATION.  Notwithstanding anything
else in this Agreement, the Employee may effect a Voluntary Termination at any
time upon giving thirty (30) days written notice to the Employer of such
termination.  In the event of a Voluntary
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 in
accordance with the applicable plan), any benefits under any plans of Employer
or Avocent in which the Employee is a participant to the full extent of the
Employee’s rights under such plans, accrued vacation pay and any appropriate
business expenses incurred by the Employee in connection with his duties
hereunder, all to the date of termination, but no other compensation or
reimbursement of any kind, including without limitation, severance
compensation.

2.8           TERMINATION UPON A
CHANGE IN CONTROL.  In the event of a
Termination Upon a Change in Control, the Employee shall immediately be paid
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 in accordance with the applicable plan), any benefits under
any plans of Employer or Avocent in which the Employee is a participant to the
full extent of the Employee’s rights under such plans (including having the
vesting of any awards granted to the Employee under any Avocent stock option,
restricted stock, performance share, or other equity plans deemed and treated
as fully earned and accelerated), accrued vacation pay and 

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any appropriate business expenses incurred by the Employee in
connection with his duties hereunder, all to the date of termination, and all
severance compensation provided in Section 4.1, but no other compensation
or reimbursement of any kind.

           3.          SALARY, BENEFITS AND BONUS COMPENSATION.

3.1           BASE SALARY. 
Effective January 1, 2006, as payment for the services to be rendered by
the Employee as provided in Section 1 and subject to the terms and
conditions of Section 2, the Employer agrees to pay to the Employee a “Base
Salary” at the rate of $240,000.00 per annum, payable in equal bi-weekly
installments.  The Base Salary for each
calendar year (or proration thereof) beginning January 1, 2006shall be determined by the Board of
Directors of Avocent Corporation upon a recommendation of the Compensation
Committee of Avocent Corporation
(the “Compensation Committee”), which shall authorize an increase in the
Employee’s Base Salary in an amount which, at a minimum, shall be equal to the
cumulative cost-of-living increment on the Base Salary as reported in the “Consumer Price
Index for All Urban Consumers(CPI-U), All Items Index” for South Urban Size A,
published by the U.S. Department of Labor (using January 1, 2006, as the base
date for computation prorated for any partial year).  The Employee’s Base
Salary shall be reviewed annually by the Board of Directors and the
Compensation Committee of Avocent Corporation.

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

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

(a)           THE EMPLOYEE
BENEFITS.  The Employee shall be eligible
to participate in such of Avocent’s benefits and deferred compensation plans as
are now generally available or later made generally available to executive
officers or Avocent, including, without limitation, stock option, restricted
stock, performance share, and other equity plans, Section 401(k) plan, profit
sharing plans, deferred compensation plan, annual physical examinations, dental
and medical plans, personal catastrophe and disability insurance, retirement
plans and supplementary executive retirement plans, if any.  For purposes of establishing the length of
service under any benefit plans or programs of Avocent, the Employee’s
employment with the Employer (or any successor) will be deemed to have
commenced on the date that Employee first commenced employment with Employer,
which was July 25, 2002.

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

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(c)           LIFE INSURANCE.  For the term of this Agreement and any extensions
thereof, the Employer shall at its expense procure and keep in effect term life
insurance on the life of the Employee, payable to such beneficiaries as the
Employee may from time to time designate, in an aggregate amount equal to three
times the Employee’s Base Salary.  Such
policy shall be owned by the Employee or by any person or entity with an
insurable interest in the life of the Employee.

(d)           REIMBURSEMENT FOR
EXPENSES.  During the term of this
Agreement, the Employer or Avocent Corporation shall reimburse the Employee for
reasonable and properly documented out-of-pocket business and/or entertainment
expenses incurred by the Employee in connection with his duties under this
Agreement in accordance with Avocent’s standard reimbursement policies.

4.             SEVERANCE
COMPENSATION.

4.1           SEVERANCE
COMPENSATION IN THE EVENT OF A TERMINATION UPON A CHANGE IN CONTROL.  In the event of a Termination Upon a Change
in Control, the Employee shall be paid as severance compensation his Base
Salary (at the rate payable at the time of such termination) for a period of
twelve (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 paid
an amount equal to the average annual bonus earned by the Employee as an
employee of Avocent Corporation and its affiliates and predecessors in the two
(2) years immediately preceding the date of termination.  Notwithstanding anything in this
Section 4.1 to the contrary, the Employee may in the Employee’s sole
discretion, by delivery of a notice to the Employer within thirty (30) days
following a Termination Upon a Change in Control, elect to receive from the
Employer a lump sum severance payment by bank cashier’s check equal to the
present value of the flow of cash payments that would otherwise be paid to the
Employee pursuant to this Section 4.1. 
Such present value shall be determined as of the date of delivery of the
notice of election by the Employee and shall be based on a discount rate equal
to the interest rate of 90-day U.S. Treasury bills, as reported in The Wall Street Journal (or similar
publication), on the date of delivery of the election notice.  If the Employee elects to receive a lump sum
severance payment, Avocent Corporation shall cause the Employer to make such
payment to the Employee within ten (10) days following the date on which the
Employee notifies the Employer of the Employee’s election.  The Employee shall also be entitled to have
the vesting of any awards granted to the Employee under any Avocent stock
option, restricted stock, performance share, or other equity plans deemed and
treated as fully earned and accelerated. 
The Employee shall be provided with medical plan benefits under any
health plans of Avocent or Employer in which the Employee is a participant to
the full extent of the Employee’s rights under such plans for a period of
twelve (12) months from the date of such Termination Upon a Change in Control
(even if Employee elects to receive a lump sum severance payment).

4.2           SEVERANCE
COMPENSATION IN THE EVENT OF A TERMINATION OTHER THAN FOR CAUSE.  In the event of a Termination Other Than for
Cause, the Employee shall be paid as severance compensation his Base Salary (at
the 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 in
Section 3.1, and Employee shall also be paid an amount equal to the
average annual bonus earned by the Employee as an employee of Avocent
Corporation and its affiliates and predecessors in the two (2) years
immediately preceding the date of termination. Notwithstanding anything in this
Section 4.2 to the contrary, the Employee may in the Employee’s sole
discretion, by 

 6
 

delivery of a notice to the Employer within thirty (30) days following
a Termination Other Than for Cause, elect to receive from the Employer a lump
sum severance payment by bank cashier’s check equal to the present value of the
flow of cash payments that would otherwise be paid to the Employee pursuant to
this Section 4.2.  Such present
value shall be determined as of the date of delivery of the notice of election
by the Employee and shall be based on a discount rate equal to the interest
rate on 90-day U.S. Treasury bills, as reported in The Wall
Street Journal (or similar publication), on the date of delivery of
the election notice.  If the Employee
elects to receive a lump sum severance payment, Avocent Corporation shall cause
the Employer to make such payment to the Employee within ten (10) days following
the date on which the Employee notifies the Employer of the Employee’s
election.  The Employee shall also be
entitled to have the vesting of any awards granted to the Employee under any
Avocent stock option, restricted stock, performance share, or other equity
plans deemed and treated as fully earned and accelerated. The Employee shall be
provided with medical plan benefits under any health plans of Avocent or
Employer in which the Employee is a participant to the full extent of the
Employee’s rights under such plans for a period of twelve (12) months from the
date of such Termination Other Than for Cause (even if Employee elects to
receive a lump sum severance payment).

                                4.3           NO SEVERANCE COMPENSATION UNDER OTHER
TERMINATION.  In the event of a Voluntary
Termination, Termination For Cause, termination by reason of the Employee’s
disability pursuant to Section 2.5, termination by reason of the Employee’s
death pursuant to Section 2.6, the Employee or his estate shall not be paid any
severance compensation.

4.4           SECTION 409A COMPLIANCE. 
Notwithstanding anything to the contrary in this Agreement, any cash
severance payments otherwise due to Employee pursuant to Section 4 or otherwise
on or within the six-month period following Employee’s termination will accrue
during such six-month period and will become payable in a lump sum payment on
the date six (6) months and one (1) day following the date of Employee’s
termination, provided, that such cash severance payments will be paid earlier,
at the times and on the terms set forth in the applicable provisions of Section
4, if Employer reasonably determines that the imposition of additional tax
under Section 409A of the Internal Revenue Code of 1986, as amended, will not
apply to an earlier payment of such cash severance payments.  In addition, this Agreement will be deemed
amended in Employer’s reasonable discretion to the extent necessary to avoid
imposition of any additional tax or income recognition prior to actual payment
to Employee under Code Section 409A and any temporary, proposed or final
Treasury Regulations and guidance promulgated thereunder and the parties agree
to cooperate with each other and to take reasonably necessary steps in this
regard so as not to reduce the benefits provided to Employee under this
Agreement.  Employer agrees to notify
Employee of any such proposed amendments prior to implementing any such
amendment.

5.             NON-COMPETITION
OBLIGATIONS.  Unless waived or reduced by
the Employer or Avocent, during the term of this Agreement and for a period of
twelve (12) months thereafter, the Employee will not, without the Employer’s
and Avocent Corporation’s prior written consent, directly or indirectly:

(a)           either
alone or as a partner, joint venturer, officer, director, employee, consultant,
agent, independent contractor or stockholder of any company or business, engage
in any business activity world wide which is substantially similar to or in
direct competition with any of the business activities of or services provided
by Employer or Avocent at such time. 
Notwithstanding the foregoing, the ownership by the Employee of not more
than five percent (5%) 

 7
 

of the shares of stock of
any corporation having a class of equity securities actively traded on a
national securities exchange or on The Nasdaq Stock Market shall not be deemed,
in and of itself, to violate the prohibitions of this Section 5; or

(b)           solicit,
in any way encourage, take away, or engage in business with customers of
Employer or Avocent (or any current or future parent, affiliate, or subsidiary
of any of them) for his own benefit in a manner competitive with the business
of Employer or Avocent or for the benefit of any person competing with the
business of Employer or Avocent worldwide; or

(c)           solicit,
in any way encourage, take away, or employ present or future employees or
present or future consultants of Employer or Avocent (or employees or
consultants of any current or future parent, affiliate or subsidiary of any of
them) for his own benefit or for the benefit of any other person.

6.             MISCELLANEOUS.

6.1           PAYMENT
OBLIGATIONS.  If litigation after a
Change in Control shall be brought to enforce or interpret any provision
contained herein, the Employer and Avocent Corporation, to the extent permitted
by applicable law and the Employer’s and Avocent Corporation’s Articles of
Incorporation and Bylaws, each hereby indemnifies the Employee for the Employee’s
reasonable attorneys’ fees and disbursements incurred in such litigation.

6.2           GUARANTEE.  Avocent Corporation hereby unconditional and
irrevocable guarantees all payment obligations of the Employer under this
Agreement, including, without limitation, the Employer’s obligations under
Sections 2, 3, 4, and 6 hereof.

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

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

6.5           ENTIRE AGREEMENT;
MODIFICATIONS.  Except as otherwise
provided herein, this Agreement represents the entire understanding among the
parties with respect to the subject matter hereof, and this Agreement
supersedes any and all prior understandings, agreements, plans and
negotiations, whether written or oral with respect to the subject matter hereof
(including the 2005 Employment Agreement),and any
understandings, agreements (including the 2005 Employment Agreement) or
obligations respecting any past or future compensation, bonuses, reimbursements
or other payments to the Employee from the Employer or Avocent
Corporation.  All modifications to the
Agreement must be in writing and signed by the party against whom enforcement
of such modification is sought.

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

 8
 

 

If to the Employer/Avocent:                                           Avocent
Corporation

4991 Corporate Drive

Huntsville, AL 35805

Attn:  President
Copy to:  General Counsel

If to the Employee:                                                                                            Edward
H. Blankenship

                                                                                                                                                                                                ___________________                    

___________________

Any
party may change such party’s address for notices by notice duly given pursuant
to this Section 6.6.

6.7           HEADINGS.  The Section headings herein are intended for
reference and shall not by themselves determine the construction or
interpretation of this Agreement.

6.8           GOVERNING LAW;
VENUE.  This Agreement shall be governed
by and construed in accordance with the laws of the State of Alabama.  The Employee, the Employer, and Avocent
Corporation each hereby expressly consents to the exclusive venue of the state
and federal courts located in Huntsville, Alabama, for any lawsuit arising from
or relating to this Agreement.

6.9           ARBITRATION.  Any controversy or claim arising out of or
relating to this Agreement, or breach thereof, shall be settled by arbitration
in Huntsville, Alabama, in accordance with the Rules of the American
Arbitration Association, and judgment upon any proper award rendered by the
arbitrators may be entered in any court having jurisdiction thereof.  There shall be three (3) arbitrators, one (1)
to be chosen directly by each party at will, and the third arbitrator to be selected
by the two (2) arbitrators so chosen.  To
the extent permitted by the Rules of the American Arbitration Association, the
selected arbitrators may grant equitable relief.  Each party shall pay the fees of the
arbitrator selected by him and of his own attorneys, and the expenses of his
witnesses and all other expenses connected with the presentation of his
case.  The cost of the arbitration
including the cost of the record or transcripts thereof, if any, administrative
fees, and all other fees and costs shall be borne equally by the parties.

6.10         SEVERABILITY.  If a court or other body of competent
jurisdiction determines that any provision of this Agreement is excessive in
scope or otherwise invalid or unenforceable, such provision shall be adjusted
rather than voided, if possible, and all other provisions of this Agreement
shall be deemed valid and enforceable to the extent possible.

6.11         SURVIVAL OF EMPLOYER’S
OBLIGATIONS.  The Employer’s and Avocent
Corporation’s obligations hereunder shall not be terminated by reason of any
liquidation, dissolution, bankruptcy, cessation of business, or similar event
relating to the Employer or Avocent Corporation.  This Agreement shall not be terminated by any
merger or consolidation or other reorganization of the Employer or Avocent
Corporation.  In the event any such
merger, consolidation or reorganization shall be accomplished by transfer of
stock or by transfer of assets or otherwise, the provisions of this Agreement
shall be binding upon and inure to the benefit of the surviving or resulting
corporation or person.  This Agreement
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 be
assignable either by 

 9
 

the Employer (except to
an affiliate of the Employer (including Avocent Corporation) in which event the
Employer shall remain liable if the affiliate fails to meet any obligations to
make payments or provide benefits or otherwise) or by the Employee.

6.12         COUNTERPARTS.  This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one and the same
Agreement.

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

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

(a)   The Employee shall be
entitled to receive an additional payment from the Employer and/or Avocent
Corporation equal to (i) one hundred percent (100%) of any Excise Tax actually
paid or payable by the Employee in connection with the Payments, plus (ii) an
additional payment in such amount that after all taxes, interest and penalties
incurred in connection with all payments under this Section 2(a), the Employee
retains an amount equal to one hundred percent (100%) of the Excise Tax.

(b)   All determinations required
to be made under this Section shall be made by the Avocent Corporation’s primary
independent public accounting firm, or any other nationally recognized
accounting firm reasonably acceptable to Avocent Corporation and the Employee
(the “Accounting Firm”).  Avocent
Corporation shall cause the Accounting Firm to provide detailed supporting
calculations of its determinations to the Employer and the Employee.  All fees and expenses of the Accounting Firm
shall be borne solely by the Employer. 
For purposes of making the calculations required by this Section, the
Accounting Firm may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Internal Revenue
Code, provided the Accounting Firm’s determinations must be made with
substantial authority (within the meaning of Section 6662 of the Internal
Revenue Code). The payments to which the Employee is entitled pursuant to this
Section shall be paid by the Employer and/or Avocent Corporation to the
Employee in cash and in full not later than thirty (30) calendar days following
the date the Employee becomes subject to the Excise Tax.

 10
 

 

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

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AVOCENT HUNTSVILLE CORP.

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John
  R.Cooper

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Chairman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  AVOCENT CORPORATION:

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John
  R.Cooper

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Chairman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  EMPLOYEE:

  	
   

  	
   

  
	
  

  	
   

  	
  /s/ Edward H.
  Blankenship

  	
   

  	
   

  
	
   

  	
   

  	
  Edward H.
  Blankenship

  	
   

  	
   

  
	
   

  	
   

  	
   

  
																	

 

 

 11

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