Document:

Exhibit 10.42

 

CONSULTING AGREEMENT

This Consulting Agreement (“Consulting Agreement”) is entered into by and between Howard Zauberman (“you”) and Cogentix Medical, Inc., (“Cogentix”), a Delaware corporation with its principal place of business in Minnetonka, Minnesota.

WHEREAS, you have significant experience and knowledge with respect to identifying strategic opportunities for Cogentix’s Industrial and Airway Management business;

WHEREAS, Cogentix believes it would be to its advantage to retain your services on the terms and subject to the conditions set forth herein; and

WHEREAS, based on the foregoing, you and Cogentix desire to enter into this Consulting Agreement to set forth the terms and conditions under which you will serve as an independent contractor providing consulting services to Cogentix in exchange for compensation as outlined below.

NOW, THEREFORE, in consideration of the mutual promises contained in this Consulting Agreement, you and Cogentix agree as follows:

1.          TERM. This Consulting Agreement will commence on March 2, 2017 and will continue until terminated pursuant to Section 7 herein (the “Term”). The Term is referred to as the “Consulting Period.”

2.          INDEPENDENT CONTRACTOR STATUS. You will be an independent contractor during the Consulting Period. As an independent contractor, you will be solely responsible for satisfying your obligations to Cogentix and will control the manner in which your services are delivered. You will use your own tools and equipment in providing such services.

3.          SERVICES. You will provide the following services and deliverables during the Consulting Period:

a.          Provide services for business development, using criteria that Cogentix provides;

b.          After 20 hours of service pursuant to this Consulting Agreement, prepare and submit an initial written report to Cogentix; and

c.          After 40 hours of service pursuant to this Consulting Agreement, or after you have completed your services pursuant to this Consulting Agreement, whichever is earlier, prepare and submit a final report to Cogentix.

4.          COMPENSATION.

a.          During the Consulting Period, you will be paid $250 per hour for your services.

 

	
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b.          You will prepare bi-weekly invoices of your consulting services to present to Cogentix.

5.          TAXES AND WITHHOLDING. As an independent contractor, you agree and acknowledge that you will be responsible for paying all applicable federal, state, and local taxes and withholdings. You will be responsible for providing Cogentix with an accurate tax-payer ID number or for completing a Form W-9 upon request.

6.          NO BENEFITS. As an independent contractor, you agree and acknowledge that you are not entitled to participate in any medical, dental, vision, or other benefits under any of Cogentix’s employee benefits plans.

7.          TERMINATION. You or Cogentix may terminate this Consulting Agreement at any time, for any reason, upon 5 business days’ written notice.

8.          OTHER BUSINESS OPPORTUNITIES. During the Consulting Period, you may enter into agreements with other entities to provide consulting services and to pursue and engage in other business opportunities, provided that such activities do not create a conflict of interest with Cogentix.

9.          WORK MADE FOR HIRE. All notes, reports, promotional materials, and other work product that you create in performing services pursuant to this Consulting Agreement that are protected by copyright are “works made for hire” for which Cogentix is the “author” (as such terms are defined by the United States Copyright Act of 1976, as amended). Cogentix will exclusively own the copyright in all such works upon their creation. To the extent that any aspect of such work product is found as a matter of law to not be a “work made for hire” as contemplated above, you hereby irrevocably and unconditionally assign to Cogentix all right, title, and interest worldwide in and to such work product and all intellectual property rights thereto. You further agree that Cogentix is and will remain the exclusive owner of all Proprietary Documents (as defined below), whether created by you, Cogentix, or either or both in conjunction with any third party. “Proprietary Documents” include all documents, acquired at the expense of Cogentix, or through the labor of Cogentix’s employees, including forms, informational summaries, memoranda, notes, buyer information, documents, or other writings that you make, compile, acquire, or receive during the Term.

10.       CONFIDENTIALITY. You agree to respect all confidences of Cogentix and to not, directly or indirectly, divulge any Confidential Information (as defined below) or trade secrets to any unauthorized person within Cogentix, or to any individual outside of Cogentix, without the express permission of an officer of Cogentix. You further agree to cooperate in all efforts to see that the confidentiality of the information with which you deal, and to which you have access, will be maintained. “Confidential Information” is any information that you acquire in the course and scope of providing services for Cogentix that (a) should reasonably be understood as confidential from the nature of the information and/or circumstances under which it is disclosed or (b) that Cogentix identifies as “confidential,” either verbally or in writing. “Confidential Information” also means any notes, analyses, compilations, studies, interpretations, memoranda, or other documents that you or Cogentix prepare that contain, reflect, or are based upon, in whole or in part, Confidential Information.

 

	
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11.       CONTROLLING LAW. This Consulting Agreement will be governed by and interpreted in accordance with the laws of the State of Minnesota, without regard to choice of law provisions. To the extent that any clause or provision of this Consulting Agreement is determined to be invalid or unenforceable, such clause or provision will be deleted, and the validity and enforceability of the remainder of this Consulting Agreement will be unaffected.

12.        VENUE. The venue for any action arising out of or relating to this Consulting Agreement will be exclusively in the State of Minnesota. You and Cogentix consent to the exclusive jurisdiction of the courts of the State of Minnesota, County of Hennepin, and the United States District Court for the District of Minnesota.

13.       NON-ASSIGNABILITY. You understand and agree that this Consulting Agreement is personal to you. You may not assign or delegate the duties, rights, or obligations set forth herein to any other person without Cogentix’s prior written consent.

14.       SURVIVAL.  The provisions of Sections 5, 6, 9, 10, 11 and 12 shall survive the Term.

15.       ENTIRE AGREEMENT. This Consulting Agreement contains all understandings and agreements between you and Cogentix regarding the subject of this Consulting Agreement. This Consulting Agreement supersedes and replaces any prior correspondence or documents evidencing negotiations between you and Cogentix, whether written or oral, and any and all understandings, agreements or representations by or among you and Cogentix, whether written or oral, that may have related in any way to the subject matter of this Consulting Agreement. Any change or addition to this Consulting Agreement must be in writing and signed by both you and Cogentix.

16.       REPRESENTATION. You agree and acknowledge that you have received and read this Consulting Agreement, that the provisions of this Consulting Agreement are understandable to you, and that you fully appreciate and understand the meaning of the terms of this Consulting Agreement and their effect. You agree that no promise or inducement has been offered to you, except as set forth in this Consulting Agreement, and that you are signing this Consulting Agreement without reliance upon any statement or representation by Cogentix or any representative or agent of Cogentix, except as set forth in this Consulting Agreement. You agree and acknowledge that you have entered into this Consulting Agreement freely and voluntarily.

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IN WITNESS WHEREOF, the parties have executed this Consulting Agreement by their signatures below.

	
Dated:   March 2, 2017

	
/s/ Howard Zauberman

	 
	 	
Howard Zauberman

	 

	
Dated:   March 2, 2017

	
Cogentix Medical, Inc.

	 
	 	 	 	 
	 	By 	
/s/ Brett Reynolds

	 
	 	 	 	 
	 	Its	
SVP and CFOExhibit

SETTLEMENT AGREEMENT

In Barcelona, on January 3, 2017

APPEARS

ON ONE HAND,

		
	§ 
	TECH DATA ESPAÑA, S.L., a Company incorporated under the laws of Spain, with legal domicile at 30-32 Acer Street, Barcelona, Spain, and Tax ID Number (hereinafter referred to as “the Company” or “Tech Data Spain”), hereby represented by Mr. Robert Dutkowsky, duly authorized by the Board of Directors and by the Legal Representative of the Sole Shareholder of the Company, Tech Data Europe GmbH.

		
	§ 
	TECH DATA CORPORATION, a Company incorporated under the laws of the State of Florida, with legal domicile at 5350 Tech Data Dr Clearwater, FL 33760, United States of Americas (hereinafter referred to as “Tech Data Corporation”), hereby represented by Mr. Robert Dutkowsky, duly authorized by the Board of Directors.

AND, ON THE OTHER HAND,

		
	§ 
	Mr.  Nestor  Cano  Soler,  of  full  age,  of  Spanish  nationality, holding national  identity  card,  on  his  own  name  and  behalf (hereinafter referred to as the “Executive”).

The Company and Tech Data Corporation will jointly be referred to as the “Tech Data Companies”. The Company, Tech Data Corporation and the Executive will jointly be referred to as the “Parties”.

DECLARE

		
	I.
	The Executive has currently been holding the position of President of the Company, under a Senior Executive Employment Contract (hereinafter referred to as the “Employment Contract”).

		
	II.
	Both Parties have mutually agreed to terminate the Employment Contract with effect on April 1, 2017.

		
	III.
	After negotiating the different aspects related with the termination of the Employment Contract, the Parties are willing to reach an agreement (hereinafter referred to as the “Agreement”) with the following

COVENANTS

FIRST: TERMINATION OF THE EMPLOYMENT RELATIONSHIP

The Parties mutually agree to terminate the Employment Contract, effective on
April 1, 2017 (hereinafter, this will be referred to as the “Termination Date”).

For the avoidance of any doubt, this Settlement Agreement terminates the Employment Contract in force between the Parties as well as the UK Assignment Letters entered into with the Executive.

SECOND: SEVERANCE PAYMENT

According to the Employment Contract and the US Severance Plan, the Company will pay the Executive a severance pay of 1,072,784 gross Great British Pounds, as a consequence of the termination of his Employment Contract. This amount equals to two (2) years of base salary, as described in the US Severance Plan.

This total gross severance compensation will be paid, once the appropriate income tax withholdings have been made, in a lump sum within five (5) days following the Termination Date.

The Executive expressly accepts the aforementioned amount and declares that he has nothing else to claim against the Company on the grounds of the termination of his employment relationship.

The amounts included in this Clause are gross and, consequently, will be subject to the appropriate withholdings.

THIRD: NOTICE PERIOD AND GARDEN LEAVE

According to this Agreement the Employment Contract’s six (6) month notice period will begin on February 1, 2017, but will be shortened to two (2) months. As compensation for the agreement to shorten the notice period, the Company will pay the Executive 340,775 Great British Pounds (the “Notice Payment”), representing four (4) months of base and proration of four (4) months of bonus at target together with 10,000 Great British Pounds as compensation for relocation assistance.

The Parties agree that for the period between February 1, 2017 and the closing of the Avnet, Inc. Technology Solutions division announced September 19, 2016 (the “Acquisition”), the Executive will continue to receive his compensation and all other rights as an employee and will continue to provide services to the Company.   For the period between the closing of the Acquisition and April 1,
2017 the Executive will continue to receive his compensation and all other rights
as an employee but will be exonerated from his obligation to render services and will therefore be on garden leave.  For the avoidance of doubt, during the notice period the Executive will continue to earn and accrue bonus in the amounts and at the time as provided in the Employment Contract, and will be paid the prorata bonus amount due up to the Termination Date (proration to be based upon the target amount).  In addition, any long term incentive grants previously made to the Executive will continue to vest to the extent vesting dates occur during the notice period.

In case that the Executive finds another position in a non-competitor entity during the notice period or the garden leave, both parties agree to anticipate the Termination  Date  to  the  date  the  Executive  starts  working  for  the  non- competitor  entity.  In  this  case,  and  accordingly, the  Executive will  not  be entitled to the Notice Payment or his salaries or further proration of bonus or continued vesting of equity for the remainder period of the notice period and garden leave.

FOURTH: NON-COMPETITION AND NON-SOLICITATION

Both parties agree that the post-contractual and non-solicitations restrictive covenants agreed in the Employment Contract remain in full force and effect. Accordingly, the Executive will comply with his non-competition and non-solicitation duties after the termination of his Employment Contract.

In order to compensate the Executive’s non-competition and non-solicitation obligations, the Company will pay the Executive an amount of 911,867 gross Great British Pounds in a lump sum payment to be made within five (5) days following the Termination Date. This amount is based on two (2) years of the targeted amount of annual bonus for the fiscal year 2017.

The Executive expressly accepts the aforementioned amount and declares that he has nothing else to claim against the Company on the grounds of his non- competition and non-solicitation obligations.

The amounts included in this Clause are gross and, consequently, will be subject to the appropriate withholdings.

FIFTH: FULL AND FINAL PAYMENT AND RELEASE

The Parties agree that the Employment Contract will be fully terminated with effect on the Termination Date. As of the Termination Date, the Executive will no longer be an employee of the Company, or of any other company belonging to the Tech Data  Group,  and  no  other  relationship with  the  Company  or  with  any  other company belonging to the Group will remain in force.

The Executive expressly declares that, without prejudice to the Company’s obligations under this Agreement, there are no other severance pay, salary or non- salary items pending to be paid. Therefore, upon receiving the severance pay and the other payments indicated under this Agreement, the Executive declares that he have received full compensation and full and final settlement for all such items to which he may be entitled due to his relationship with the Company and Tech Data Group, expressly stating that, apart from the amounts indicated in this Agreement, there are no outstanding amounts owed to him by the Company or any other company of Tech Data Group.

As the Parties reach the present Agreement, the Executive expressly accepts the termination of his Employment Contract and waives the right to bring any action (whether statutory, contractual or otherwise) or any claim of any kind (including, but not limited to, labour, civil, administrative or criminal actions) against the Company or any other company of Tech Data Group.

SIXTH: COMPANY PROPERTY

On the Termination Date, the Executive will return all property belonging to the Company he may have in his possession, custody or control, in accordance with the provisions of the Employment Contract.

SEVENTH: CONFIDENTIALITY

The Executive undertakes the obligation to keep strict confidentiality with regard to all the Confidential Information he may have gained access while employed by the Company in accordance with the provisions of the Employment Contract.

EIGHTH: MUTUAL NO DISPARAGEMENT

The Executive and the Tech Data Companies agree not to criticize, denigrate or otherwise disparage the other Party, any other entity affiliated with the other Party, or any of the Company's products, processes, experiments, policies and practices, standards of business conduct, or areas or techniques of research.

NINTH: COLLATERAL PLEDGE

In order to ensure the Executive’s compliance with the all of Executive’s obligations and  covenants under  the  post-contractual obligations described  in  the  Fourth Clause of this Settlement Agreement and Clause 13 of the Employment Contract, prior to payment of the lump sum severance amount and lump sum non-compete and non-solicitation amounts described in clauses SECOND and FOURTH above Executive will provide a collateral pledge of liquid assets owned by Executive in an amount not less than US$ 1,325,000, which collateral pledge will be in force until all such obligations have been fully discharged.

In case that the Executive fails to fulfil the post-contractual obligations described in the Fourth Clause under this Settlement Agreement and Clause 13 of the Employment Contract, the Company will become the owner of the liquid assets mentioned in the previous paragraph which funds will be applied to the total the Executive will be obligated to compensate the Company or any Group Company for

the damages caused to them as a result of the breach of his obligations, pursuant to this Settlement Agreement and to the Employment Contract.

TENTH: ENTIRE AGREEMENT

This Agreement constitutes the entire agreement by the Company, Tech Data Corporation and the Executive with respect to the subject matter hereof, and supersedes any and all prior contracts, agreements or understandings between the Executive and the Tech Data Companies, whether written or oral.

ELEVENTH: JURISDICTION AND GOVERNING LAW

This Agreement shall be construed by and in accordance with Spanish Law. Accordingly, the Parties expressly agree to submit any dispute arising between them over the performance and interpretation of this Agreement to the Courts and Tribunals of Barcelona.

IN WITNESS HEREOF the Parties, having carefully read this document, ratify and sign it in duplicate, both copies being equally valid, in the city and on the date first above mentioned.

	
					
	/s/ Robert Dutkowsky
	 
	/s/ Nestor Cano

	Robert Dutkowsky.
	 
	Mr. Nestor Cano Soler

	TECH DATA ESPAÑA, S.L.
	 
	The Executive

	TECH DATA CORPORATION

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