Document:

Exhibit 10.22

 

COMMUNITY FIRST BANKSHARES

EXECUTIVE SEVERANCE PLAN

 

Effective August 5, 2003

As Amended December 12, 2003

 

Introduction

 

Community First Bankshares, Inc. (“CFB”) established a severance pay
plan entitled “Community First Bankshares Executive Severance Plan” (“Plan”)
effective August 5, 2003 for the benefit of certain eligible executives of
CFB and its subsidiaries.

 

This document (“Summary”) is intended to give participants an easily
understood explanation of the Plan. 
This Summary, in conjunction with any future amendments, constitutes the
official plan document for the Plan. 
You may request an additional copy of this Summary by sending a written
request to the address below.

 

Neither the receipt of this Summary nor the use of the term “you”
indicates that you are eligible for a severance benefit under the Plan.  Only those executives who are selected for
participation and satisfy the requirements for a severance payment contained in
the Plan are eligible for a benefit.

 

Capitalized terms have specialized meanings.  Terms that are not defined in the context of a particular
section are defined at the end of this document.

 

If you have questions regarding the Plan, you may contact the Executive
Vice-President, Human Resources at:

 

Community First Bankshares

520 Main Avenue

Fargo, North Dakota 58124

Telephone:  (701) 298-5600

 

Purpose

 

The purpose of this Plan is to:

 

•                                          enhance
the ability of CFB to retain existing executive management and, if needed,
attract new executives;

 

•                                          provide
reasonable severance benefits for eligible executives in the event of
termination of employment; and

 

•                                          enhance
executive morale.

 

 

Eligibility
to Participate

 

You become a participant in the Plan if you are employed by CFB within
the rank, position or salary grade (or similar category) selected by the
Compensation Committee of the Board of Directors (“Committee”) to participate
in the Plan.  If you are among the
executive employees whose rank, position, salary grade or similar category is
selected for participation, you will be notified in writing.  Employment in an executive capacity does not
entitle you to selection for participation in the Plan.  The Committee shall not select any category
of employees for participation unless it determines that each person in that
category is a member of a select group of management or highly compensated
employees (as that expression is used in ERISA).  The Committee’s selection of a category of executive employees
for participation shall be made solely in its discretion and shall be
conclusive and binding.

 

When
Participation Ends

 

You will cease to be a participant in the Plan as of the first to occur
of the following events:

 

•                                          the
date you receive all of the severance payments due under the Plan in the event
you are eligible for severance;

 

•                                          the
date of your death;

 

•                                          the
date the Committee notifies you that as a result of a change in your employment
status you are no longer included in a category selected to be participants in
the Plan;

 

•                                          the
date the Plan is amended to exclude as participants the category of executive
employees that includes or the Plan is terminated; or

 

•                                          the
date your employment ends for any reason, which does not result in your
eligibility for severance.

 

Eligibility
for Severance

 

You are eligible to receive severance only if:

 

•                                          your
employment is terminated by CFB other than for Cause or your Disability, or you
terminate your employment for Good Reason;

 

•                                          you
are a participant in the Plan at the time of your termination of employment;
and

 

•                                          you
have signed and returned a general release of claims in the form of a Waiver
and Release Agreement that will be provided to you by CFB in compliance with
its terms no sooner than the last day on which you perform services for CFB.

 

2

 

Notice
of Termination

 

Any termination of employment by either CFB or you must be communicated
by a notice of termination to the other party. 
The notice must specify the basis for the termination (including any
basis for Cause or Good Reason) and the effective date of the termination.

 

Exclusions

 

You are not eligible for severance pay, if any of the following apply:

 

•                                          you
fail to report to work or resign from employment prior to the effective date of
your termination of employment set forth in the notice of termination;

 

•                                          you
announced in writing your intention to terminate employment or retire prior to
the date CFB announces that your employment will terminate;

 

•                                          your
termination of employment is due to Cause;

 

•                                          your
employment ends due to your Retirement, Disability or Death;

 

•                                          you
voluntary resign or terminate your employment other than for Good Reason; or

 

•                                          your
employment ends in connection with the sale of assets or a change in ownership
of any part of CFB’s operations and you are offered a comparable position with
comparable pay.

 

Amount
of Severance Payment

 

The amount of severance for which you are eligible is based on your
position at the time of your termination of employment and your Base Pay
according to the following schedule:

 

	
  Position

  	
   

  	
  Severance
  Amount

  
	
  Chief Executive Officer

  	
   

  	
  36 months of Base Pay

  
	
  Chief Operating Officer

  	
   

  	
  24 months of Base Pay

  
	
  EVP Level Officer

  	
   

  	
  18 months of Base Pay

  
	
  SVP Level Officer

  	
   

  	
  12 months of Base Pay

  

 

Time
and Form of Severance Payment

 

Severance payments will be paid on a salary continuation basis at
regular payroll intervals.  Payment will
begin as soon as administratively feasible after the expiration of any
revocation or rescission period specified in the release of claims.  An individual receiving a severance payment
is ineligible to make contributions to, or earn credit under, any CFB
retirement plan.  In the event of your
death, any severance payments not completed shall be payable to your spouse or,
if you

 

3

 

do not have a spouse, to the personal representative of your
estate.  All severance payments are
subject to required withholding.

 

Other
Pay/Benefits

 

Other Company provided pay and benefits will be addressed as follows:

 

•                                          The
Company will pay you for any unused accrued PTO at your last day of employment
in accordance with Company Policy.

 

•                                          The
Company will pay you any bonus/incentive amount according to the terms of the
Corporate Annual Incentive Plan (AIP) pro-rated for your actual employment
dates.

 

•                                          The
Company will cease paying any other pay or perquisites such as auto allowances,
club memberships, etc. at the end of the month of your last day of employment.

 

•                                          The
Company will continue your participation in Company Health/Dental/Vision
(H/D/V) plans according to your elections and the terms/conditions of those
plans for the period during which you are receiving monthly severance payments,
or until such coverage would otherwise terminate under the same principles as
applied to federal continuation coverage (COBRA).  Alternatively, Company may select at its sole discretion to
provide alternative coverage of comparable H/D/V benefits or reimburse you for
the cost of same on a cost-sharing basis comparable to Company’s H/D/V plans.
If you continue your participation in the H/D/V plans during the entire
severance period, your rights under federal continuation coverage (COBRA) will
begin immediately thereafter.

 

•                                          The
Company will cease paying for or contributing to all other welfare, fringe,
retirement, or perquisite benefits at the end of your employment as those plans
delineate.  Certain of these benefits
may have continuation rights for which you will receive notice.

 

•                                          You
will be eligible for payment of fees for outplacement services according to CFB
arrangements for your position.

 

•                                          You
will be allowed to exercise any vested, unexercised stock options under the CFB
Incentive Stock Option plan within 30 days of the day of your position
resignation.  No further vesting of any
unexercised stock options will occur after the date of your position
resignation.

 

Forfeiture
Events

 

You shall not be entitled to any severance payments under the Plan if
CFB determines in its sole discretion that any of the following events have occurred:

 

4

 

•                                          you
engaged in conduct prior to your termination of employment that constitutes
Cause; or

 

•                                          you
attempted to rescind or revoke the release of claims, or violated the terms of
the release of claims.

 

If payments have already commenced, all remaining severance payments
shall be suspended, notwithstanding your entitlement to such payments.

 

If, after a severance payment is made, CFB determines that any of the
foregoing forfeiture provisions apply, CFB shall have the right, using any
method allowed by law, to recover from you the amount of severance paid.

 

Effect of Reemployment

 

If you are eligible for severance, you must promptly notify CFB if you
enter into regular full-time employment following your separation from CFB and
during a period equal to the number of months of Base Pay that you are eligible
to receive under the Plan.

 

If you enter into such employment, all severance payments and benefits
under the Plan will cease following your first full month of employment, and
you will be eligible to receive a lump sum payment equal to 50% of the amount
of any remaining severance payments.

 

However, you will not be eligible for a lump sum payment if: you take a
senior level position with a financial services organization that is considered
to be a major competitor of CFB.

 

Exclusive Severance

 

The severance benefits provided under this Plan are the only severance
payments available to you in connection with your termination of
employment.  A participant who becomes
eligible for severance under this Plan shall not be eligible for severance
under any other plan, policy, procedure, practice, agreement or arrangement.

 

280G
Limit

 

In the event that any payment or benefit received or to be received by
you in connection with a change in control of CFB or termination of your
employment, whether payable pursuant to the terms of this Plan or any other
plan, contract, agreement or arrangement (collectively, “Total Payments”),
would not be deductible in whole or in part by CFB solely as a result of
Section 280G of the Internal Revenue Code (“Code”), the amount payable to
you under the Plan shall be reduced until no portion of the Total Payments is
not deductible solely as a result of Section 280G of the Code or such
amount payable to you is reduced to zero.

 

For purposes of this limitation:

 

•                                          no
portion of the Total Payments shall be taken into account which in the opinion
of tax counsel selected by CFB does not constitute a “parachute payment” within
the meaning of Section 280G(b)(2) of the Code;

 

5

 

•                                          the
payment pursuant to the Plan shall be reduced only to the extent necessary so
that the Total Payments in their entirety constitute reasonable compensation
within the meaning of Section 280G(b)(4)(B) of the Code, in the opinion of
the tax counsel; and

 

•                                          the
value of any other non-cash benefit or any deferred cash payment included in
the Total Payments shall be determined by CFB’s independent auditors in
accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

In case of uncertainty as to whether all or some portion of a payment
is or is not payable to participant under this Plan, CFB shall initially make
the payment to the participant, and the participant agrees to refund to CFB any
amounts ultimately determined not to have been payable based upon the terms
above.

 

Administration
of Plan

 

CFB is the plan administrator and sponsor of the Plan and is
responsible for the general operation and administration of the Plan and for
the expenses related to such operation and administration.  CFB shall have the duty and responsibility
of maintaining records, making determinations that it believes are necessary or
advisable for the operation and administration of the Plan, making the
requisite calculations and disbursing payments under the Plan.  CFB may delegate authority with respect to
the administration of the Plan to such other committee, person or persons as it
deems necessary or appropriate for the administration and operation of the
Plan.

 

CFB has the sole discretion, authority, power and responsibility to
decide all factual and legal questions under the Plan, including:

 

•                                          interpreting
and construing the provisions of the Plan and any ambiguous or unclear terms
within the Plan document;

 

•                                          adopting,
establishing and revising rules, procedures and regulations relating to the
Plan;

 

•                                          determining
the conditions subject to which any benefit may be payable, resolving all
questions concerning the status and rights of a participant, and whether a
claimant is eligible for benefits under the Plan and the amount of the
benefits, if any, a claimant is entitled to receive; and

 

•                                          making
any other determinations, which it believes necessary or advisable for the administration
and operation of the Plan.

 

In making any benefits determinations under the Plan, CFB may rely
conclusively upon all tables, valuations, certificates, opinions and reports
furnished by any actuary, accountant, controller, counsel or other person
employed or engaged by CFB with respect to the Plan.  The decisions, interpretations and calculations of CFB are
conclusive and binding on all parties. 
CFB reserves the right to correct any errors that may occur in the
administration of the Plan, including reducing or eliminating benefits to you
under the Plan.

 

6

 

Claims
Procedure

 

If you believe you may be entitled to severance benefits that you have
not received or you disagree with any determination made by CFB with respect to
the Plan, you should file a written claim for benefits with CFB at the
following address:  Community First
Bankshares, 520 Main Avenue, Fargo, North Dakota 58124.  All claims for benefits under this Plan must
be received by CFB within one year of your termination of employment.  Claims that are received more than one year
from the date of your termination of employment will be denied as untimely.

 

Within 90 days after you deliver your claim, CFB will notify you of the
decision or request additional time (up to another 90 days) to reach a decision
based upon the existence of special circumstances. If CFB notifies you that it
needs additional time, the notice will describe the special circumstances
requiring the extension and the date by which it expects to reach a
decision.  If CFB denies your claim, in
whole or in part, you will receive a notice specifying the reasons, the Plan
provisions on which it is based, a description of additional material (if any)
needed to perfect the claim, your right to file a civil action under
section 502(a) of ERISA if your claim is denied upon review and an
explanation of your right to request a review.

 

If your claim is denied, in whole or in part, and you disagree with the
decision, within 60 days of the date you receive written notice of the denial,
you must deliver to CFB a written request for review at the address listed
above.  Your request for review must
include issues and comments you want considered in the review.  At any time during the claim and review
procedure, you may examine relevant Plan documents.

 

Within 60 days after you deliver your request for review, CFB will
notify you of the decision or request additional time (up to another 60 days)
to reach a decision based upon the existence of special circumstances.  If CFB notifies you that it needs additional
time, the notice will describe the special circumstances requiring the
extension and the date by which it expects to reach a decision.  If CFB affirms the denial of your claim, in
whole or in part, you will receive a notice specifying the reasons, the Plan
provisions on which it is based, notice that upon request you are entitled to
receive free of charge reasonable access to and copies of the relevant
documents, records and information used in the claims process and your right to
file a civil action under section 502(a) of ERISA.

 

If you file your claim within the required time period and complete the
entire claim and review procedure and your claim is still denied, any lawsuit
must be commenced within 6 months after the claim and review procedure is
complete.  In any event, you must
commence a lawsuit within 30 months after you knew or should have known
the principal facts on which your claim is based.  CFB may rely on any applicable statute of limitations as a basis
to deny a claim.

 

Amendment
and Termination

 

CFB, by written action of its Board, has the right to, at any time,
amend the provisions of the Plan or terminate the Plan for any reason and in
any respect at its sole discretion.  However,
in the event of a change in control of CFB this Plan cannot be amended or
terminated for a 12-month period following the change in control.  CFB’s right to amend the Plan includes, but
is not limited to, changes in the eligibility requirements and benefit amounts
provided under the Plan.  If the Plan is
amended or terminated, you will be subject to all the changes effective as a
result of

 

7

 

such amendment or termination, and your rights will be reduced,
terminated or altered accordingly, as of the effective date of the amendment or
termination.  You do not have ongoing
rights to any benefits, other than payment of benefits to which you became
entitled prior to the Plan amendment or termination.  CFB may delegate authority to amend or terminate the Plan to one
or more individuals it deems advisable.

 

Plan
Funding

 

Any severance payments will be paid out of the general assets of CFB,
and you will not have any secured or preferred interest by way of trust,
escrow, lien or otherwise in any specific assets of CFB.  Your rights shall be solely those of an
unsecured general creditor of CFB.

 

Governing
Law

 

To the extent not preempted by the laws of the United States, the laws
of the State of North Dakota shall apply with respect to the Plan.

 

Severability

 

If a provision of the Plan shall be held to be illegal, invalid or
unenforceable, the illegal, invalid or unenforceable provision shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced
as if the illegal or invalid provision had not been included.

 

Assignment
Prohibited

 

You cannot assign, encumber or otherwise anticipate the payments to be
made under this Plan, and the benefits provided under this Plan will not be
subject to seizure for payment of any order or judgment against you.

 

No
Employment Rights

 

Becoming a participant in this Plan does not assure your continued
employment or right to benefits except as outlined by the Plan, nor does it
interfere with the rights of CFB to discharge you at any time as an at-will
employee.  This Plan shall not be deemed
an employment contract.

 

ERISA
Status

 

This Plan is adopted with the understanding that it is an unfunded
welfare plan maintained primarily for the benefit of a select group of
management or highly compensated employees within the meaning of ERISA.  The Plan is not an employee benefit
plan.  Each provision shall be
interpreted and administered accordingly.

 

Definitions

 

Disability
— shall have the same meaning as that term is defined in CFB’s long-term
disability plan.

 

Base Pay
— the highest regular monthly rate of pay for a participant over the prior 24
months.  Base Pay shall be determined
before deductions for taxes and other items withheld, but

 

8

 

excluding all types of incentive pay, all forms of stock or equity
based compensation, fringe benefits, special pay or awards, commissions,
bonuses and overtime.  Base Pay shall
include regular basic cash remuneration that is contributed by an employee to a
qualified retirement plan, nonqualified deferred compensation plan or similar
plan by CFB but it shall not include earnings on those amounts.

 

Cause
— termination of the participant’s employment by CFB based upon:  (i) the continued failure by a participant
to substantially perform the participant’s duties (unless such failure is due
to participant’s Disability) after a written demand specifying the
participant’s performance failures is delivered to the participant and a period
of at least 14 business days is given to such participant to cure such
failures; (ii) any act of fraud by the participant; (iii) any conviction for a
felony or commission of a criminal or other act that will probably cause
substantial economic damage to CFB or substantial injury to its business
reputation; or (iv) the order of a regulatory agency.

 

Good Reason
— the occurrence of any of the following events, without the participant’s
express written consent:  (i) the
assignment to the participant of duties that are inconsistent with the
Participant’s position and salary; and (ii) a reduction of 10% or more in the
participant’s Base Pay.

 

Retirement
— termination of the participant’s employment which occurs on or after the date
(i) the Participant has attained age 65; or (ii) the Participant has both
attained age 55 and completed at least 10 years of service, and the Participant
indicates he/she is “retiring”.

 

9Exhibit 10.13

 

AMENDED AND RESTATED

EMPLOYMENT AND NONCOMPETITION AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AND NONCOMPETITION AGREEMENT (the “Agreement”) is made and entered
into as of October 10, 2003, by and among Avocent Huntsville Corp.
(formerly known as Cybex Computer Products Corporation), an Alabama corporation
(“AHC” or “Employer”), Avocent Corporation, a Delaware corporation, and John R.
Cooper  (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 solutions for enterprise data centers, service providers, and
financial institutions; and

 

WHEREAS, Employee and
Employer entered into that certain Employment and Noncompetition Agreement
dated March 4, 2002 (the “Original Employment Agreement”); and

 

WHEREAS, Employer,
Employee, and Avocent now wish to amend and restate the Original Employment
Agreement with this Amended and Restated Employment and Noncompetition
Agreement, and Employee is willing to accept employment as Avocent’s President
and Chief Executive Officer 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
President and Chief Executive Officer. 
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 President and Chief Executive Officer.  The Employee shall report only 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 President and Chief Executive Officer 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 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(e), 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 

 

2

 

Avocent Corporation’s
common stock immediately prior to the merger or consolidation have
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                                 BASIC
TERM.  The term of employment of the
Employee by the Employer under this Agreement shall be for the period beginning
on the date of this Agreement, and ending on December 31, 2007,
unless terminated earlier pursuant to this Section 2.  At any time before December 31, 2007,
the Employer and the Employee may by mutual written agreement extend the
Employee’s employment under the terms of this Agreement for such additional
periods as they may agree.

 

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.

 

3

 

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 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 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 AHC or Avocent stock option plans fully
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 through the expiration of this Agreement, 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 AHC or Avocent stock option plans fully
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 

 

4

 

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 AHC or Avocent stock option plans fully 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, 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, 2003,
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 $400,000
per annum, payable in equal bi-weekly installments.  The Base Salary for each calendar year (or proration thereof)
beginning January 1, 2004  shall 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 (More Than
1,500,000)” published by the U.S. Department of Labor (using January 1,
2003, 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 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 of Avocent, including, without limitation,
stock option 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 AHC or Avocent, the Employee’s employment with the
Employer (or any successor) will be deemed to have commenced on March 4,
2002.

 

5

 

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

 

(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
twenty-four (24) 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 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 AHC or Avocent
stock option plans fully 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 period of
twenty-four (24) 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 

 

6

 

at the time of such
termination) for the severance payout period specified in the following table
from the date of such Termination Other Than for Cause, on the dates specified
in Section 3.1:

 

	
  Date of
  Termination Other Than for Cause

  	
   

  	
  Severance Payout Period

  
	
  After March 4, 2002 but before March 4,
  2003

  	
   

  	
  Twelve (12) Months

  
	
  On or after March 4, 2003, but before
  March 4, 2004

  	
   

  	
  Eighteen (18) Months

  
	
  On or after March 4, 2004, but before
  March 4, 2005

  	
   

  	
  Twenty-One (21) Months

  
	
  On or after March 4, 2005

  	
   

  	
  Twenty-Four (24) Months

  

 

In the event of a Termination Other Than for Cause,
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 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 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 AHC or Avocent stock option plans fully 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 the applicable severance payout period specified in this
Section 4.2 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, or 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.

 

5.                                       NON-COMPETITION
OBLIGATIONS.  Unless waived or reduced
by the Employer or Avocent, during the term of this Agreement and for a period
of thirty-six (36) months thereafter, the Employee will not, without the
Employer’s and Avocent Corporation’s prior written consent, directly or
indirectly, 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 in the United States, Canada, Europe,
or Asia which is substantially similar to or in direct competition with any of
the business activities of or services provided by the 

 

7

 

Employer or Avocent at
such time.  Notwithstanding the
foregoing, the ownership by the Employee of not more than five percent (5%) 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.

 

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 (including the Original
Employment Agreement), plans and negotiations, whether written or oral with
respect to the subject matter hereof,  and
any understandings, agreements (including the Original 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 this
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:

 

	
  If to the
  Employer/Avocent:

  	
  Avocent Corporation

  
	
   

  	
  4991 Corporate Drive

  
	
   

  	
  Huntsville, AL 35805

  
	
   

  	
  Attn:          Executive
  Vice President

  
	
   

  	
  Copy
  to:    General Counsel

  

 

8

 

	
  If to the Employee:

  	
  John R. Cooper

  
	
   

  	
   

  

 

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, Madison County, 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 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.

 

9

 

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 Amendment (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 finally 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 the 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. (formerly

  know as Cybex Computer Products Corporation)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Doyle C. Weeks

  
	
   

  	
  Its:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AVOCENT
  CORPORATION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edwin L. Harper

  
	
   

  	
  Its:

  	
  Chairman
  of the Compensation Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  John R. Cooper

  
	
   

  	
  John
  R. Cooper

  

 

11

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