Document:

exv10wxly

 

Exhibit 10(l)

[THIS AGREEMENT IS SUBJECT TO ARBITRATION]

EMPLOYMENT, CONFIDENTIALITY, AND NON-COMPETITION AGREEMENT

     This “Agreement” is between the “Company,” Interphase Corporation, and Randall E. McComas,
“Executive.” The Company is organized under the laws of the State of Texas. Its principal place
of business is located at 13800 Senlac Road, Dallas, Texas, 75234.

Background Statement

     The Company is engaged in the computer and telecommunications server markets, including local
area networking, wide area networking, and storage area networking. Executive desires to be
employed or continue to be employed by the Company. The Company desires to employ Executive,
provided that as an express, prior condition of such employment, Executive enters into this
Agreement with the Company.

     This Agreement sets forth the terms of Executive’s employment. The parties agree that this
Agreement is supported by valuable consideration, that mutual promises and obligations have been
undertaken by the parties to it, and that the agreement is entered into voluntarily by the parties.

Statement of Agreement

	1.	 	Duties. Executive shall devote Executive’s best efforts to the business of the Company.
Executive shall perform such duties and responsibilities customary to the position of Vice
President of Global Sales & Marketing, including those described on Exhibit A to this
Agreement. Executive shall also perform those duties assigned by the Company from time to
time.
	 
	2.	 	Terms. The “initial term” of employment under this Agreement shall terminate twelve (12)
months after the date of this Agreement. The initial term of this Agreement shall
automatically renew for successive twelve (12) month periods, referred to as “successor
terms,” unless either party gives thirty (30) days written notice of its intention not to
renew prior to the expiration of the initial or any successor term or Executive is terminated
for cause.

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	3.	 	Terminable Only For Cause. This Agreement may be terminated by the Company prior to the
expiration of the initial term or any successor term as follows:

	 	  (a)	 	Due to the death of Executive;
	 
	 	  (b)	 	Due to a physical or mental disability which prevents Executive from performing
the essential functions of his full duties for a period of ninety (90) consecutive days
during the term of this Agreement, as determined in good faith by a physician
reasonably acceptable to the Company; or,
	 
	 	  (c)	 	For Cause, which is (i) fraud, misappropriation, embezzlement, dishonesty, or
other act of material misconduct against the Company or any affiliate of the Company;
(ii) failure to perform specific and lawful directives of Executive’s superiors; (iii)
violation of any rules or regulations of any governmental or regulatory body, which is
materially injurious to the financial condition of the Company; (iv) conviction of or
plea of guilty or nolo contendere to a felony; (v) violation of the provisions of 8,
10, 11, 13, or 16; or, (vi) substantial failure to perform the duties and
responsibilities of Executive under this Agreement.

	 	 	In the event of termination under this paragraph, Executive shall be entitled only to
Executive’s base salary earned through the date of termination. No accrued but unpaid
bonuses or commissions shall be due to Executive.
	 
	4.	 	Termination Without Cause or Nonrenewal. In the event the Company gives Executive thirty
days written notice of its intention not renew a term of this Agreement, or if Executive is
terminated without cause, the Executive shall receive: (i) the balance of base-salary due
under this Agreement for the balance of its term on the regular pay dates of the Company; and
thereafter, (ii) as severance pay for a minimum period of three (3) months, Executive’s base
salary payable on the regular pay dates of the Company; provided, however, that in no event
shall the amount of base-salary payments paid or owing under this paragraph, whether owed
under the balance of any remaining term or as severance pay, be less than six (6) months
base-salary compensation, or greater than nine (9) months base-salary compensation. No accrued
but unpaid bonuses or commissions shall be due to Executive under this Paragraph. No other
severance payment or benefits shall be due Executive other than those provided for under this
Agreement. Notwithstanding anything stated herein to the contrary, in the event Executive
becomes employed during the period in which the Executive is eligible to receive
post-employment payments under this paragraph, any amounts received by Executive in the form
of compensation, salary, or other payments shall be offset or shall reduce any amounts or
liability owed by the Company to the Executive under this paragraph.

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	5.	 	Compensation. Employer shall pay and provide benefits to Executive according to the
provisions of Executive’s compensation plan described in the attached Exhibit B.
Executive’s compensation plan shall be reviewed on a periodic basis. The Company reserves
the right, and Executive hereby authorizes Company, to make deductions from Executive’s pay
or bonuses to satisfy any outstanding obligations of Executive to the Company. The Company
may offset against the final payment of wages or bonuses owed to Executive any amounts due
the Company from Executive.
	 
	6.	 	Changes in Position, Location, or Compensation. If the Company transfers, promotes, or
reassigns Executive to another position or geographic area, or both parties agree to a change
in compensation or benefits during a term of this Agreement or upon the renewal of a term of
this Agreement, an updated employment agreement may be substituted by agreement of the parties
but is not required. Mutually-agreeable changes in compensation or benefits shall be effected
by amendment to and incorporation of a modified Exhibit B, initialed by the parties or their
authorized representative. All provisions, promises, terms or conditions not modified by an
amendment of
 Exhibits A—C shall remain in effect and shall not be deemed revoked or
modified beyond the changes set forth in one or more amended Exhibits.
	 
	7.	 	Executive Representation/Warranty. Executive represents that Executive is not a party to any
agreement with a third party, or limited by a court order, containing a non-competition
provision or other restriction which would preclude Executive’s employment with Company or any
of the services which Executive will provide on the Company’s behalf.
	 
	8.	 	Duty of Loyalty. Executive acknowledges the common law duties of reasonable care, loyalty,
and honesty which arise out of the principal/agent relationship of the parties. While
employed and thereafter for whatever term the law may impose, Executive shall not engage in
any activity to the detriment of the Company. By way of illustration and not as a limitation,
Executive shall not discuss with any customer or potential customer of the Company any plans
by Executive or any other Executives of the Company to leave the employment of the Company and
compete with the Company.
	 
	9.	 	Company Documents. Executive agrees and acknowledges that Executive holds as the Company’s
property all memoranda, books, papers, letters, and other data, including duplicates, relating
to the Company’s business and affairs (“Company Documents”). This includes Company Documents
created or used by Executive or otherwise coming into Executive’s possession in connection
with the performance of Executive’s job duties. All Company Documents in the possession,
custody, or control of Executive shall be returned to the Company at the time of termination
of employment.

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Confidential Information and Non-Competition

	10.	 	In exchange for the mutual promises and obligations contained in this Agreement, and
contemporaneous with its execution or soon thereafter, Employer promises to deliver to
Executive or permit Executive to acquire, be exposed to, and/or have access to material, data,
and information of the Company and/or its customers or clients that is confidential,
proprietary and/or a trade secret (“Confidential Information”). At all times, both during and
after the termination of employment, the Executive shall keep and retain in confidence and
shall not disclose, except as required in the course of the Executive’s employment with the
Company, to any person, firm or corporation, or use for the Executive’s own purposes, any
Confidential Information. For the purposes of this paragraph, such information shall include,
but is not limited to:

	 	 1.	 	The Company’s standard operating procedures, processes, formulae, know-how,
scientific, technical, or product information, whether patentable or not, which is of
value to the Company and not generally known by the Company’s competitors;
	 
	 	 2.	 	All confidential information obtained from third parties and customers
concerning their products, business, or equipment specifications;
	 
	 	 3.	 	Confidential business information of the Company, including, but not limited
to, marketing and business plans, strategies, projections, business opportunities,
client identities or lists, sales and cost information, internal financial statements
or reports, profit, loss, or margin information, customer price information; and,
	 
	 	 4.	 	Other information designated by the Company or deemed by law to be confidential
information.

	11.	 	Non-Competition. In consideration of the mutual promises contained in this Agreement,
the sufficiency of which is acknowledged by the parties, Executive agrees that during the term
of his employment and for a period of twelve (12) calendar months after termination of
employment from the Company (whether voluntary or involuntary), Executive shall not, directly
or indirectly, either as principal, agent, manager, employee, partner, shareholder, director,
officer, consultant or otherwise:

	 	  1.	 	Become associated or affiliated with, employed by, or financially interested in
any business operation which competes in the business currently engaged in by Company.
(The phrase “business currently engaged in by the Company” includes, but is not limited
to, the type of activities in which the Company was engaged during Executive’s tenure,
such as designs and delivers high performance connectivity adapters for computer and
telecommunication networks.)

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	 	  2.	 	Solicit or attempt to solicit the business or patronage of any person, firm,
corporation, partnership, association, department of government or other entity with
whom the Company has had any contact during a period of twelve (12) calendar months
preceding the date of this Agreement (“Customers”), or otherwise induce such Customers
to reduce, terminate, restrict or otherwise alter business relationships with the
Company in any fashion; or,
	 
	 	  3.	 	In any way solicit or attempt to solicit the business or patronage of any
Customers.
	 
	 	  4.	 	The parties intend the above restrictions on competition to be completely
severable and independent, and any invalidity or unenforceability of any one or more
such restrictions shall not render invalid or unenforceable any one or more
restrictions.

	12.	 	Limitations on Scope. In recognition of the broad geographic scope of the Company’s business
and the ease of competing with the Company in any part of the United States, the restrictions
on competition set forth herein are intended to cover the following geographic areas:

	 	  1.	 	The geographic territory identified on the attached Exhibit C;
	 
	 	  2.	 	The cities containing a facility or operation owned or managed by the Company;
and,
	 
	 	  3.	 	A fifty (50) mile radius outside the boundary limits of each such city.
	 
	 	 	 	The parties intend the above geographical areas to be completely severable and independent,
and any invalidity or unenforceability of this Agreement with respect to any one area shall
not render this Agreement unenforceable as applied to any one or more of the other areas.

	13.	 	Non-Solicitation of Employees. During employment and for a period of twelve (12) months
after termination, Executive agrees not to hire, employ, solicit, divert, recruit, or attempt
to induce, directly or indirectly, any existing or future employee of the Company to leave
their position with the Company or to become associated with a competing business.

Remedies for Breach

	14.	 	Company’s Right to Obtain an Injunction. Executive acknowledges that the Company will have
no adequate means of protecting its rights under Paragraphs 10, 11, 12, or 13 of this
Agreement other than be securing an injunction (a court order prohibiting the Executive from
violating the Agreement). Accordingly, the Executive agrees that the Company is entitled to
enforce this Agreement by obtaining a temporary, preliminary, and permanent injunction and
any other appropriate equitable relief. Executive acknowledges that the Company’s recovery
of damages will not be an adequate means to redress a breach of this Agreement. Nothing

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	 	 	contained in this paragraph, however, shall prohibit the Company from pursuing any remedies
in addition to injunctive relief, including recovery of damages. Executive expressly
acknowledges that the Company has sole discretion regarding whether to seek a remedy for
breaches of Paragraphs 10, 11, 12, or 13 in a court of competent jurisdiction or by
arbitration procedures outlined in paragraph 15.
	 
	15.	 	Arbitration. Except for the provisions of paragraphs 10, 11, 12, or 13, Executive and the
Company agree that all Disputes, as defined in Article 1 of the Alternative Dispute Resolution
Procedure (the “ADR Procedure”), regarding the termination of employment or other covered
Disputes, shall be resolved exclusively in accordance with the Company’s ADR Procedure.
Executive warrants and represents that Executive has received, read, and understands the
Company’s ADR Procedure.

Inventions and Discoveries

	16.	 	Discoveries, Inventions, & Copyrights. Executive shall disclose promptly to the Company any
and all conceptions and ideas for inventions, improvements, and valuable discoveries, whether
patentable or not, which are conceived or made by the Executive, solely or jointly, during
Executive’s term of employment and which pertain to the business activities of the Company.
Executive hereby assigns and agrees to assign all his interest therein to the Company or to
its nominee. Whenever requested to do so by the Company, Executive shall execute any and all
applications, assignments, or other instruments which the Company shall deem necessary to
apply for and obtain Letters of Patent of the United States or any foreign country or to
otherwise protect the Company’s interest therein.

General Provisions

	17.	 	Condition to Seeking Subsequent Employment. Executive agrees to show a copy of this
Agreement to any Competitor with whom Executive interviews during the Executive’s employment
with the Company or with whom the Executive interviews within twelve (12) months following the
effective date of the termination of the Executive’s employment with the Company.

	18.	 	Attorneys’ Fees. If any party shall obtain a final judgment of a court of competent
jurisdiction, subject to no further appeal, pursuant to which any other party shall be
determined to have breached its obligations hereunder or made any misrepresentations, such
prevailing party shall be entitled to recover, in addition to any award of damages, reasonable
attorneys’ fees, costs, and expenses incurred by such party in obtaining such judgment.

	19.	 	Non-Disparagement and Confidentiality. Except as may be required by law or as consented to
in writing by an authorized officer or agent of the Company, Executive agrees not to make
any statements whatsoever, directly or indirectly, written or oral, which could reasonably
become public, which could be interpreted as embarrassing, disparaging, prejudicial, or in

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	 	 	any way detrimental or inimical to the interests of the Company. Furthermore, Executive
agrees to hold confidential and not to disclose, make public, or to communicate orally or in
writing to any person or entity (other than Executive’s significant other and immediate
family), directly or indirectly, the terms of this Agreement or any matters set forth
herein, except only: (a) as may be compelled by court orders; (b) as may be necessary to
enforce the terms of this Agreement; (c) to legal, accounting, and financial advisors; (d)
as may be necessary in connection with the application for or obtaining loans or credit; (e)
as may be necessary to comply with applicable laws and government
regulations; or, (f) as
may be necessary or desirable in obtaining future employment.
	 
	20.	 	Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the
Company, its subsidiaries, affiliates, successors, and assigns.
	 
	21.	 	Nonwaiver. Any waiver by the Company of a breach of any provision of this Agreement must be
in writing and signed by the Company to be effective. Any waiver by the Company of a breach
of any provision of this Agreement shall not operate or be construed as a waiver by the
Company of any different or subsequent breach of this Agreement by Executive.
	 
	22.	 	Applicable Law. This Agreement shall be construed in accordance with and governed by the
laws of the State of Texas, without giving effect to the conflict of laws provisions thereof.
	 
	23.	 	Forum Selection Clause. Any and all causes of action for equitable relief relating to the
enforcement of this Agreement and not otherwise subject to the mandatory arbitration
provisions of Paragraph 15 may, in the Employer’s sole discretion, be brought in the
United States District Court for the Northern District of Texas or the Dallas County District
of the Texas State Courts. The parties agree that the provisions of this paragraph benefit
both Employer and Executive. Any and all causes of action by and between Employer and
Executive can be quickly and efficiently resolved in the agreed-upon forum, which will not
unduly burden either Employer and Executive, and which will substantially aid Employer and
Executive in providing the opportunity for uniform treatment with respect to any issues
relating to the covenants contained in this Agreement.
	 
	24.	 	Entire Agreement. This Agreement represents the entire agreement between the Company and the
Executive with respect to the subject matter hereof, supersedes all prior agreements dealing
with the same subject matter, and may not be changed except in a writing signed by the party
against whom enforcement of the Agreement, as so changed, is sought.
	 
	25.	 	Severability. The invalidity of any term or provision of this Agreement, including any term
or provision of paragraphs 10, 11, 12, or 13 shall not invalidate or otherwise affect any
other term or provision of this Agreement.
	 
	26.	 	This agreement shall be effective February 15, 2002.

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	 	 	Interphase Corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gregory B. Kalush   
                  
	 

	 	 	 	Gregory B. Kalush
	 
	 	 	 	 
	 

	 	Its:
	 	President and Chief Executive Officer
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	Executive
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	/s/ Randall E. McComas                                        
	 	 	Randall E. McComas

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Exhibit A

Job Description

	 	 	 
	Job Title: Vice President, Global Sales & Mktg.

	 	Department: Sales & Marketing
	Reports To: President and CEO

	 	FLSA Status: Exempt
	Prepared By: Human Resources

	 	Approved By: G. Kalush
	Prepared Date: November 6, 2001

	 	Approved Date: 1/22/02

SUMMARY

Responsible for the sales and marketing processes, policies, programs and objectives of the company
on a worldwide basis. Responsible for setting the long-term sales & marketing vision for the
company and developing sales and marketing strategies to achieve the company’s long-term goals.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.
Management reserves the right to change these duties at any time.

Evaluates marketing strategy to meet competitive conditions.

Plans and directs sales and marketing teams toward the accomplishment of corporate objectives.

Strives to maintain and improve the organization’s competitive position and ensures maximum sales
volume while achieving profit goals.

Establishes and implements sales forecasts, and meets or exceeds expectations.

Directs and coordinates activities of Strategic Account Managers, Regional Sales Managers, and
Channel Sales through national and international distribution networks to attain goals and
objectives.

Reviews analyses of activities, costs, operations, and forecast data to determine department
progress toward stated goals and objectives.

Confers with chief executive officer to review achievements and discuss required changes in goals
or objectives resulting from current status and conditions.

Develops pricing strategies in conjunction with Finance.

Establishes and implements promotional and advertising programs.

 

 

SUPERVISORY RESPONSIBILITIES

Manages several subordinate managers including the Director of European Sales, Strategic Account
Managers, Regional Sales Managers and Channel Sales Manager. Will also have a dotted line reporting
relationship to the business unit marketing management staff and responsibility for all Corporate
Marketing staff. Is responsible for the overall direction, coordination, and evaluation of these
units. Carries out supervisory responsibilities in accordance with the organization’s policies and
applicable laws. Responsibilities include interviewing, hiring, and training employees; planning,
assigning, and directing work; appraising performance; rewarding and disciplining employees;
addressing complaints and resolving problems.

QUALIFICATIONS To perform this job successfully, an individual must be able to perform each
essential duty satisfactorily. The requirements listed below are representative of the knowledge,
skill, and/or ability required. Reasonable accommodations may be made to enable individuals with
disabilities to perform the essential functions.

EDUCATION and/or EXPERIENCE

Bachelor’s degree (B. A.) or equivalent; plus eight to ten years related experience and/or
training; or equivalent combination of education and experience. Must have extensive sales and
marketing experience in North America, Europe and the Asia/Pacific Rim regions. This position
requires a proven track record of driving sales through OEM account managers and distribution
networks as well as managing the marketing efforts through subordinate managers. Must have
developed a working knowledge of Telecommunications and Computer Networking product markets. Must
also possess an effective tactical execution style.

LANGUAGE SKILLS

Ability to read, analyze, and interpret common scientific and technical journals, financial
reports, and legal documents. Ability to respond to common inquiries or complaints from customers,
regulatory agencies, members of the business community, or employees. Ability to write speeches
and articles for publication that conform to prescribed style and format. Ability to effectively
present information to customers, the Sr. Leadership Team, the Board of Directors, our employees,
public groups, and/or the media.

MATHEMATICAL SKILLS

Ability to work with mathematical concepts such as probability and statistical inference, and
fundamentals of plane and solid geometry and trigonometry. Ability to apply concepts such as
fractions, percentages, ratios, and proportions to practical situations.

 

 

REASONING ABILITY

Ability to define problems, collect data, establish facts, and draw valid conclusions. Ability to
interpret an extensive variety of technical instructions in mathematical or diagram form and deal
with several abstract and concrete variables.

PHYSICAL DEMANDS The physical demands described here are representative of those that must be met
by an employee to successfully perform the essential functions of this job. Reasonable
accommodations may be made to enable individuals with disabilities to perform the essential
functions.

While performing the duties of this job, the employee is regularly required to use hands to finger,
handle, or feel and talk or hear. The employee frequently is required to walk, sit, and reach with
hands and arms. The employee is occasionally required to stand. The employee must occasionally
lift and/or move up to 10 pounds. Specific vision abilities required by this job include close
vision and color vision.

WORK ENVIRONMENT The work environment characteristics described here are representative of those
an employee encounters while performing the essential functions of this job. Reasonable
accommodations may be made to enable individuals with disabilities to perform the essential
functions.

Normal office environment.

Initials
/s/ GBK

/s/ REM

Exhibit A

 

 

Exhibit B

Compensation

	 	 	Base Salary. $9,375 per pay period ($225,000/year on an annual basis), of which there are
26 in each calendar year, less deductions as may be required by law or authorized by
Executive.
	 
	 	 	Auto Allowance. $600.00 per month.
	 
	 	 	Performance Bonus. Executive shall be eligible for an annual bonus for FY2002 of $100,000
based upon the Corporation’s existing Executive Bonus Plan. The first $30,000 of this
bonus will be considered a guaranteed sign on bonus, payable at the end of 60 days of
employment. The remaining $70,000 will be tied to Executive Incentive Targets (MBOs) for
2002. The bonus will be awarded based on achievement of specific corporate objectives, as
determined by the Company.
	 
	 	 	Stock Options. The Corporation shall, according to the Company’s Amended and Restated Stock
Option Plan, grant to Executive options to purchase 100,000 shares of common stock of the
Company. Executive’s right, title, and interest to any stock options conferred under the
Employment Agreement shall be controlled and governed by terms and conditions of the
Company’s Amended and Restated Stock Option Plan. The per share option price will be
determined as of the close of NASDAQ trading on Executive’s first day of employment.
	 
	 	 	Vacation and Leave. Executive shall be entitled to three (3) weeks of vacation per year,
accrued monthly, and six (6) sick days per year, and any other paid leave benefits provided
for in the Company’s Employee Handbook.
	 
	 	 	Office Furnishings. The Company agrees to provide office space and furnishings to Executive
commensurate with the Company’s decor and culture.
	 
	 	 	Executive Benefit Plans. Executive shall be eligible to participate in any profit sharing,
retirement, medical benefit, or disability benefit plan maintained by the Company, if any,
according to the terms and conditions of those plans.

Initials:/s/ GBK

/s/ REM

Exhibit B

 

 

Exhibit C

Designated Cities — Per Paragraph 11a of Employment, Confidentiality,

and Non-Compete Agreement.

The Continental United States

Initials:/s/ GBK

/s/ REM

Exhibit Cexv10wxmy

 

Exhibit 10(m)

[THIS AGREEMENT IS SUBJECT TO ARBITRATION]

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 24th day of
November, 1999, (“Effective Date”) by and between Interphase Corporation and its subsidiaries (the
“Corporation”), and Deborah A. Shute (“Executive”).

     WHEREAS, the Corporation desires to enter into an employment agreement with Executive on
certain terms and conditions as set forth herein; and

     WHEREAS, Executive is willing to accept such employment on such terms; and

     NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants and promises
hereinafter contained, do hereby agree as follows:

	1.	 	Employment. The Corporation hereby employs Executive and Executive hereby accepts
employment on the following terms and conditions. Executive will be employed by the
Corporation as the Vice President of Human Resources. In that capacity, Executive will report
directly to the Chief Executive Officer of the Corporation. Executive agrees to review and
comply with all policies and procedures in the Corporation’s Employee Handbook.
	 
	2.	 	Term. Executive’s employment with the Corporation will be “At Will”, and thus,
either party may terminate the relationship at any time for any reason, subject to the
termination provisions in paragraphs 6 and 7. Executive further understands that any reference
to dates and/or periods of time in this Agreement, including any reference to rights Executive
may have at certain specified dates after her execution of this Agreement, are expressly
conditional upon Executive remaining in the employment of the Corporation at the specified
time or date and are in no way intended to alter the “At Will” nature of Executive’s
employment.
	 
	3.	 	Salary and Other Compensation. As compensation for the services to be rendered by
Executive to the Corporation pursuant to this Agreement, Executive shall be paid the following
compensation and other benefits:

	 	a)	 	Salary: $5,000.00 per pay period, of which there are 26 in each
calendar year, less deductions as may be required by law. The Corporation
reserves the right to: (i) make deductions from Executive’s pay to satisfy any
outstanding obligations; and/or (ii) make deductions from Executive’s pay to
satisfy any losses resulting from unlawful activities. In each case,
deductions to be made only after final adjudication by a court of competent
jurisdiction.
	 
	 	b)	 	Bonus: Executive shall be eligible for an annual bonus based upon the
Corporation’s existing Executive Bonus Plan. The maximum annual bonus potential
shall be $30,000 if the Corporation and Executive satisfy the criteria for

 

 

	 	 	 	achieving said bonus as outlined in the Executive Bonus Plan. The Corporation
reserves the right to: (i) make deductions from Executive’s bonus to satisfy any
outstanding obligations; and/or (ii) make deductions from Executive’s bonus to
satisfy any losses resulting from unlawful activities.

	 	c)	 	Office Furnishings: The Corporation agrees to provide office space and
furnishings to Executive commensurate with the Corporation’s décor and culture.
	 
	 	d)	 	Executive Benefit Plans: Executive shall be allowed to participate, to
the extent they may be eligible, in any profit sharing, retirement, insurance
or other Executive benefit plan maintained by the Corporation. In the event
Executive elects to participate in the Corporation’s medical, dental, vision,
and life insurance plans, the Corporation will pay the entire cost of such
coverage for Executive and her immediate family.
	 
	 	e)	 	Vacations and Leave: Executive shall be entitled to three (3) weeks of
vacation per year, accrued monthly, and six (6) sick days per year, and any
other paid leave benefits provided for in the Corporation’s Employee Handbook.

	4.	 	Non-Disclosure of Confidential Information. Executive acknowledges that beginning on
Effective Date, the Corporation has and shall continue to provide to Executive, and she will
otherwise be making use of, acquiring, and/or adding to special training and confidential
information of a special and unique nature and value relating to such matters as the
Corporation’s copyrights, proprietary information, trade secrets, systems, product
developments, procedures, manuals, confidential reports, lists of customers (which are deemed
for all purposes confidential and proprietary), as well as the nature and type of services
rendered by the Corporation, the equipment and methods used and preferred by the Corporation’s
customers, and the fees paid by them. Executive further agrees that if a third party (e.g.,
vendors, customers and manufacturers) contracts with the Corporation, the information obtained
or received from a third party including, but not limited to, its patents, copyrights,
proprietary information, trade secrets, systems, product development, procedures, manuals, and
confidential reports, will be treated in the same manner and subject to the same protection as
other Confidential Trade Secret Information (as hereinafter defined) of the Corporation.
	 
	 	 	      As a material inducement to the Corporation to enter into this Agreement and to pay
Executive the compensation and benefits stated herein and as a condition of employment and
continued employment, Executive shall keep confidential all such confidential and proprietary
information which Executive has learned or learns or acquires as a result of her employment
with the Corporation. By way of example, “Confidential Trade Secret Information” may consist
of any idea, process, design, concept, formula, pattern, device, development, customer
information or compilation of information which is used in the Corporation’s business, which
gives the Corporation an advantage over a competitor who does not know or use it.
	 
	 	 	      Executive agrees that the appropriate remedy for any breach of this paragraph 4 is a suit
for injunctive relief and specific performance in any court of competent jurisdiction.
Executive agrees that damages for use of any identified Confidential Trade Secret Information
in violation

 

 

	 	 	of this paragraph 4 shall be 100% of the gross amount of revenue derived from
unauthorized use of such information.

	5.	 	Covenants Not to Compete. Executive acknowledges that the confidential information
which the Corporation shall provide to her under the terms of paragraph 4 of this Agreement is
special and unique, and that the receipt of it by Executive is of benefit and value to her.
Executive acknowledges delivery and receipt of such confidential information and specialized
training contemporaneously and/or in conjunction with the execution of this Agreement, such
confidential information and training being given and delivered to Executive expressly in
consideration for her agreement to be bound by the provisions of this Paragraph. Executive
also acknowledges that Corporation does not normally disclose such confidential information
and takes steps to protect it. Executive further acknowledges that the services he/she is to
render to the Corporation are of a special and unusual character with a unique value to the
Corporation, the loss of which cannot adequately be compensated by damages in action at law.
Accordingly, and expressly in consideration for the Corporation’s agreement in paragraph 4 of
this Agreement to provide confidential information to her, Executive agrees that during the
term of her employment and for a period of twelve (12) months from the date this Agreement is
terminated, for whatever reason:

	 	a)	 	Executive shall not, directly or indirectly, without the express
written consent of the Corporation, solicit or induce, or attempt to solicit or
induce, any employee of the Corporation, current or future, to leave or cease
their relationship with the Corporation, for any reason whatsoever, or hire any
current or future employee of the Corporation.
	 
	 	b)	 	Executive shall not, directly or indirectly, without the express
written consent of the Corporation: (i) engage in any business or activity that
is competitive with the business of the Corporation; and/or (ii) be employed
by, or provide competitive services or assistance to, a “Competing Business”
(hereinafter defined) which would potentially involve, directly or indirectly,
the use and/or disclosure of the Corporation’s Confidential Trade Secret
Information. For purposes of this Agreement, a Competing Business means any
person or firm that offers services or products that are directly competitive
with those marketed, offered for sale and/or under any stage of development by
the Corporation as of the date of Executive’s separation from employment. If
Executive desires to work for a Competing Business in an area that is not
competitive with the business of the Corporation, Executive must give written
notice to the Chief Executive Officer of the Corporation and obtain her
approval that the employment will not violate the terms and conditions of this
paragraph 5 before beginning employment with the Competing Business.
	 
	 	c)	 	Executive will not solicit or attempt to solicit the Corporation’s
existing or prospective customers to purchase services or products that are
competitive with those marketed, offered for sale and/or under any stage of
development by the Corporation as of the date of Executive’s separation from
the Corporation. For purposes of this Agreement, existing customers shall mean
those persons or firms

 

 

	 	 	 	that the Corporation has made a sale to in the twelve
(12) months preceding Executive’s separation from employment; prospective
customers shall mean those persons or firms that the Corporation has solicited and/or negotiated to sell
the Corporation’s products or services to within the twelve (12) months
preceding Executive’s separation from the Corporation.

	 	d)	 	In the event that any of the provisions of this paragraph 5 shall be
held to be invalid or unenforceable, the remaining provisions thereof shall
nevertheless continue to be valid and enforceable as though the invalid or
unenforceable parts had not been included therein. In the event that any
provision of this paragraph 5 relating to the time period and/or the areas of
restriction and/or related aspects shall be declared by a court of competent
jurisdiction to exceed the maximum restrictiveness such court deems reasonable
and enforceable, the time period and/or areas of restriction and/or related
aspects deemed reasonable and enforceable by the court shall become and
thereafter be the maximum restriction in such regard, and the restriction shall
remain enforceable to the fullest extent deemed reasonable by such court.
	 
	 	e)	 	Executive agrees that the appropriate remedy for any breach of this
paragraph 5 is a suit for injunctive relief and/or specific performance in any
court of competent jurisdiction. Executive agrees that the Corporation also
has the right to seek damages for any breach of this paragraph 5. The
Corporation has sole discretion regarding whether to seek a remedy for breach
of this paragraph in a Court of competent jurisdiction and/or through
arbitration procedures outlined in paragraph 9.

	6.	 	Termination. This Agreement will terminate as follows:

	 	a)	 	Death. Executive’s employment hereunder shall automatically terminate
upon her death.
	 
	 	b)	 	Disability. The Corporation may terminate the Executive’s employment
hereunder in the event of the Executive’s Disability (as hereinafter defined).
For purposes of this Agreement, “Disability” shall mean that, as a result of
the Executive’s incapacity due to illness or injury, Executive shall have been
absent from her duties under this Agreement on a substantially full-time basis
for a period of three (3) or more consecutive months, and thereafter, within
thirty (30) days after the Corporation notifies Executive in writing that it
intends to replace her, Executive shall not have returned to the performance of
such duties on a full-time basis. Should Executive be diagnosed as permanently
disabled by her treating physician, the Corporation can terminate her
employment without waiting for the expiration of the three-month period.
Without limiting the foregoing, until the Corporation terminates Executive’s
employment hereunder on account of Disability, the Executive shall receive her
full compensation as provided in Paragraph 3 of this Agreement.

 

 

	 	c)	 	By Executive. Executive may resign at any time upon thirty (30) days
notice to the Chief Executive Officer of the Corporation.
	 
	 	d)	 	By the Corporation.

	 	(1)	 	The Corporation may terminate Executive for any reason or
no reason upon thirty (30) days written notice to Executive.
	 
	 	(2)	 	The Corporation may terminate Executive immediately for
Willful Neglect of her duties and responsibilities. For purposes of this
Agreement, “Willful Neglect” means (a) any act or course of conduct by
the Executive constituting a criminal act or (b) an act by the Executive
that is not authorized by the Board of Directors of the Corporation, or a
committee thereof, and which results in gain to or personal enrichment of
the Executive at the expense of the Corporation, or (c) the commission by
the Executive of an act or course of conduct involving moral turpitude,
or (d) a breach by Executive of either or both of Paragraphs 4 and 5 of
this Agreement, or (e) the Executive’s intentional violation of
reasonable written instructions or policies established by the
Corporation’s Board of Directors with respect to the operation of the
Corporation’s business and affairs, or the Executive’s failure to carry
out reasonable written instructions or policies of the Board of
Directors, or a material breach (other than a breach of Paragraphs 4 or
5) by the Executive of this Agreement, provided that before a termination
of the Executive pursuant to this subsection 10(d)(i)(e) shall be
considered for “Willful Neglect”, the Corporation’s Board of Directors
must give the Executive written notice and (30) days to cure such
violation or failure.

	7.	 	Payment Upon Termination. Notwithstanding any other provision of this Agreement,
payments and/or benefits to Executive upon termination shall be as follows, and only as
follows:

	 	a)	 	Upon Death or Disability: Executive shall be entitled to earned, but
unpaid salary, pro-rata bonus as determined by the Corporation and vested
options.
	 
	 	b)	 	Upon Resignation by Executive and Upon Termination for Willful
Neglect: Executive shall be entitled to her earned, but unpaid salary and
vested options.
	 
	 	c)	 	Upon Termination for Other than Willful Neglect: If the Corporation
terminates Executive’s employment for any reason other than Willful Neglect,
Executive will be eligible for 6 months of severance pay at her base salary
rate, payable in 13 bi-weekly payments consistent with the Corporation’s
normal payroll cycle, if and only if she executes a general release of all
claims against the Corporation upon separation of her employment with the
Corporation. The severance payment, pro-rated bonus as determined by the
Corporation, vested options, and

 

 

	 	 	 	accrued vacation will be the only
entitlements made to Executive upon separation of her employment with the
Corporation. Executive will receive no other monetary payment from the
Corporation. Eighty percent of this severance payment will be allocated to Executive’s agreement to abide by the covenant not
to compete provisions and nondisclosure requirements contained in paragraphs 4
and 5 of this Agreement. Executive’s obligations under paragraphs 4 and 5 of
this Agreement will continue regardless of whether Executive receives a
severance payment from the Corporation. To the extent possible, the Executive
shall be required to mitigate the amount of any severance payment provided for
in this Agreement by seeking other employment or otherwise.
	 
	 	d)	 	Any amounts of money owed by Executive to the Corporation at the time
of termination shall be offset against any wages owed by Corporation to
Executive.

	8.	 	Non-Disparagement. Executive agrees that she will not disparage the Corporation, in
any manner, upon separation of her employment from the Corporation. Likewise, Corporation
agrees that it will not disparage the Employee, in any manner, upon separation of her
employment from the Corporation.
	 
	9.	 	Arbitration. Except for the provisions of paragraphs 4 and 5, Executive and
Corporation agree that all Disputes, as defined in Article I of the Alternative Dispute
Resolution Procedure (the “ADR Procedure”), regarding the termination of employment or other
covered Dispute shall be resolved exclusively in accordance with the Corporation’s ADR
Procedure. The parties, however, agree that the ADR Procedure does not apply to claims for
unemployment compensation benefits or claims by the Corporation for injunctive relief,
specific performance, and/or damages as provided for in paragraphs 4 and 5 of this Agreement.
Executive represents, warrants and agrees that (a) Executive has received, read and
understands the Corporation’s ADR Procedure; (b) Executive must file a claim under the ADR
Procedure within one-hundred and eighty (180) days of being notified of the termination or
other adverse employment decision; (c) arbitration may be compelled and enforced under the
Federal Arbitration Act; (d) any arbitration award is final and binding upon both Executive
and the Corporation; (e) the ADR Procedure shall survive the employer-Executive relationship
and applies to any Dispute whether it is asserted during or after Executive’s separation of
employment; and (f) the ADR Procedure does not alter the parties’ ““At Will”” employment
relationship.
	 
	10.	 	Indemnification. If applicable, the Corporation agrees to provide the Executive with
coverage under its Director’s and Officer’s liability insurance policy. The Corporation also
agrees to indemnify and defend Executive in accordance with the Corporation’s Bylaws.
	 
	11.	 	Resignation Upon Termination. In the event of separation of Executive’s employment with
the Corporation, Executive hereby agrees to resign from all positions held in the Corporation,
including, without limitation, any position of director, officer, agent, trustee, or
consultant of the Corporation.
	 
	12.	 	Waiver. A party’s failure to insist on compliance or enforcement of any provision of
this Agreement, shall not affect the validity or enforceability or constitute a waiver of
future

 

 

	 	 	enforcement of that provision or of any other provision of this Agreement by that party
or any other party.

	13.	 	Governing Law. This Agreement shall in all respects be subject to, and governed by, the
laws of the State of Texas.
	 
	14.	 	Severability. The invalidity or unenforceability of any provision in the Agreement
shall not in any way affect the validity or enforceability of any other provision and this
Agreement shall be construed in all respects as if such invalid or unenforceable provision had
never been in the Agreement.
	 
	15.	 	Notice. Any and all notices required or permitted herein shall be deemed delivered
if delivered personally or if mailed by registered or certified mail to the Corporation at its
principal place of business and to Executive at the address hereinafter set forth following
Executive’s signature, or at such other address or addresses as either party may hereafter
designate in writing to the other.
	 
	16.	 	Assignment. This Agreement, together with any amendments hereto, shall be binding upon
and shall inure to the benefit of the parties hereto and their respective successors, assigns,
heirs and personal representatives, except that the rights and benefits of either of the
parties under this Agreement may not be assigned without the prior written consent of the
other party.
	 
	17.	 	Amendments. This Agreement may be amended in writing at any time by mutual consent of
the parties hereto. Any purported amendment that is not in writing and signed by the
Corporation and Executive is invalid.
	 
	18.	 	Entire Agreement. This Agreement contains the entire agreement and understanding by
and between Executive and the Corporation with respect to the employment of Executive, and no
representations, promises, agreements, or understandings, written or oral, relating to the
employment of Executive by the Corporation not contained herein shall be of any force or
effect.
	 
	19.	 	Burden and Benefit. This Agreement shall be binding upon, and shall inure to the
benefit of, the Corporation and Executive, and their respective heirs, personal and legal
representatives, successors, and assigns.
	 
	20.	 	References to Gender and Number Terms. In construing this Agreement, feminine or number
pronouns shall be substituted for those masculine in form and vice versa, and plural terms
shall be substituted for singular and singular for plural in any place which the context so
requires.
	 
	21.	 	Headings. The various headings in this Agreement are inserted for convenience only and
are not part of the Agreement.

IN WITNESS WHEREOF, the Corporation and Executive have duly executed this Agreement as of the
Effective Date.

 

 

	 	 	 
	INTERPHASE CORPORATION

	 	EXECUTIVE
	 
	By:
/s/ Gregory B. Kalush

	 	By: /s/ Deborah A. Shute 
	GREGORY B. KALUSH

	 	DEBORAH A. SHUTE
	President &

	 	Vice President, Human Resources
	Chief Executive Officer
	 	 
	 
	 	 
	Address for Notice Purposes:

	 	Address for Notice Purposes:

Chief Executive Officer

Interphase Corporation

13800 Senlac Road

Dallas, Texas 75234

 

 

ATTACHMENT A

List of Confidential Information

	•	 	Overall corporate strategy
	 
	•	 	Annual Business Plan, Revenue, Expense and Earnings Projections
	 
	•	 	Annual Budgets, Margin Analyses
	 
	•	 	Product Strategy including Marketing Plans and Product Roadmaps
	 
	•	 	Customer and Supplier Lists
	 
	•	 	Pricing Strategy
	 
	•	 	Bills of Materials
	 
	•	 	Telephone Listing of Current Employees

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]