Document:

Prepared by MERRILL CORPORATION

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

                THIS EMPLOYMENT AGREEMENT (this

"Agreement") is made and entered into as of February 1, 2001 (the

"Effective Date"), by and between MULTIPLE ZONES, INC., a Washington

corporation ("the Company"), and SCOTT KOERNER ("Employer").

 

                The parties agree as follows:

 

                1.                Employment.

 

                                1.1                Title and

Duties.  Company hereby employs

Employee, and Employee hereby accepts such employment, on the terms and

conditions set forth herein. Employee is employed as Executive Vice president

and Chief Operating Officer, reporting to the President and Chief Executive

Officer ("CEO") or such other officer as the Company's Board of

Directors (the "Board") shall direct from time to time. At all times,

Employee shall be subject to the direction of the Board. Employee shall have

the duties and responsibilities assigned by the CEO or the Board on the

Effective Date and as may be assigned from time to time. Employee shall perform

faithfully and diligently all duties assigned to Employee.

 

                                1.2                Full-time

and Best Efforts.  Employee will

expend Employee's best efforts on behalf of the Company, and will abide by all

policies and decisions made by the Company, as well as all applicable federal,

state and local laws, regulations or ordinances. Employee will act in the best

interests of the Company at all times and will devote Employee's full business

time and efforts to the performance of the Employee's assigned duties to the

Company.

 

                2.                Compensation.

 

                                2.1                Base Salary.  As compensation for Employee's performance

of Employee's duties hereunder, the Company shall pay to Employee an initial

Base Salary of Two Hundred Seventy-Five Thousand Dollars ($275,000) per year,

payable in accordance with the normal payroll practices of the Company, less

any amounts that the Company is required by applicable federal, state or local

law to withhold there from on account of employment, income or other taxes. In

the event that either party for any reason, terminates Employee's employment

under this Agreement, Employee will earn the Base Salary prorated to the date

of termination.

 

                                2.2                Management

Incentive Plan Participation. 

Employee shall be entitled to participate in the Company's Management

Incentive Plan, as it may be amended or terminated from time to time, in the sole

discretion of the Board.

 

                                2.3                Stock Option

Award.  Subject to the Board's

approval, the Company shall grant to Employee's a nonqualified stock option to

purchase up to 60,000 shares of the Company's Common Stock, under the Company's

1993 Stock Incentive Plan (the "Plan") at an exercise price equal to

the fair market value of that stock on the date of grant. The option will be

subject to the terms and conditions of the Plan and standard form of stock

option agreement, which Employee will be required to sign as a condition of

receiving the option.

 

                                2.4                Performance

and Salary Review.  The Board or its

Compensation Committee shall periodically review the performances of Employee

on no less than an annual basis. The Board will make any adjustments to salary

and other compensation in its sole and absolute discretion.

 

                3.                Benefits.

 

                                3.1                Customary

Fringe Benefits.  Employee will be

eligible for all customary and usual fringe benefits generally available to

employees of the Company, subject tot he terms and conditions of the Company's

plan documents. Company reserves the right to change or eliminate the fringe

benefits on a prospective basis, at any time, effective upon notice to

Employee.

 

                                3.2                Vacation.  Employee will be entitled to accrue vacation

in accordance with the Company's vacation policy, but in no event will

Employee's vacation accrued be less than four (4) weeks per year. Employee

agrees to take vacation at mutually agreeable times.

 

                4.                Business

Expenses.  Company will reimburse

Employee for all reasonable out-of-pocket expenses incurred in the performance

of Employee's duties on behalf of the Company. To obtain reimbursement,

expenses must be submitted promptly with appropriate supporting documentation

in accordance with the Company's policies.

 

                5.                Terms.

 

                                5.1                Initial Term.  The employment relationship formed pursuant

to this Agreement shall be for an initial term commencing on the Effective Date

and continuing for a period of three (3) years following such date (the

"Initial Term"), unless sooner terminated in accordance with the

other provisions of this Agreement.

 

                                5.2                Renewal.  On completion of the Initial Term specified

in subsection 5.1 above, this Agreement will expire unless the parties agree in

advance to renew this Agreement for a subsequent one-year term. In the event

that the parties do not agree to renew this Agreement pursuant to this Section

5.2, this Agreement will expire at the end of the current term.

 

                6.                Termination

of Employee's Employment.

 

                                6.1                Termination

for Cause by the Company.  Although

the Company anticipates a mutually rewarding employment relationship with

Employee, the Company may terminate Employee's employment immediately at any

time for Cause. For purposes of this Agreement, "Cause" is defined

as: (a) Employee's willful neglect of duties as determined in the sole and

exclusive discretion of the Board; (b) Employee's failure or inability to

perform the essential functions of the position, with or without reasonable

accommodation, due to a mental or physical disability, where such inability

continues for a period or periods aggregating thirty (30) calendar days in any

12-month period; (c) Employee's conviction or entry of a plea or nolo

contendere for fraud, embezzlement, misappropriation, or any felony or any other

act of moral turpitude; (d) acts or omissions constituting gross negligence,

recklessness or willful misconduct on the part of the Employee with respect to

Employee's obligations or otherwise relating to the business of the Company;

(e) Employee's death; (f) Employee's material breach of this Agreement or the

Company's Employee Innovations and Proprietary Rights Assignments Agreement,

following written notice and a 10-day opportunity to cure. In the event that

Employee's employment is terminated in accordance with this subsection 6.1,

Employee shall be entitled to receive only the Base Salary then in effect,

prorated to the date of termination and any benefits and expense reimbursements

to which Employee is entitled by virtue of his prior employment by Company

(collectively, the "Standard Entitlement"). All other Company

obligations to Employee pursuant to this Agreement will become automatically

terminated and completely extinguished. Employee will not be entitled to

receive the Severance Payment described in Section 6.2 below or any part

thereof.

 

                                6.2                Termination

Without Cause by Company/Severance. 

The Company may terminate Employee's employment under this Agreement

without Cause at any time upon written notice to Employee. In the event of such

termination, Employee will receive the Standard Entitlements (as defined in

Section 6.1 hereof), and a "Severance Payment" equivalent to one (1)

year of Employee's Base Salary then in effect on the date of termination,

payable in accordance with the Company's regular payroll cycle, provided that

the Employee: (a) complies the all surviving provisions of this Agreement as

specified in subparagraph 15.9 below; and (b) executes a full and general

release, releasing all claims, known or unknown, that Employee may have against

Company arising out of or related to Employee's employment or termination of

employment with the Company. All other Company obligations to Employee pursuant

to this Agreement will be automatically terminated and completely extinguished.

 

                                6.3                Voluntary

Resignation by Employee Without Reason. 

Employee may voluntarily resign Employee's position with Company for any

reason or no reason on ninety (90) days' advance written notice to the Company.

In the event of Employee's resignation under such circumstances, Employee will

be entitled to receive the Standard Entitlements, including salary and benefits

for the ninety (90) day notice period, but no other salary or benefits for the

remaining months of the current term, if any. All other Company obligations to

Employee pursuant to this Agreement will become automatically terminated and

completely extinguished. In addition, Employee will not be entitled to

receive the Severance Payment described in subsection 6.2 above.

 

                                6.4                Termination

Upon a Change in Control.

 

                                                (a)                Severance

Package.  If Employee's employment

is terminated by the Company within eighteen (18) months after a Change in

Control (as that term is defined below), other than for Cause (as defined in

subsection 6.1 above) or employee resigns for Good Reason (as defined below)

during such period, Employee (i) shall be entitled to receive the Severance

Package described in subsection 6.2 above, provided Employee complies with all

the conditions described in subsection 6.2 above, (ii) all options or other

rights to acquire Common Stock or other equity securities of the company or any

successor corporation then held by Employee shall immediately and automatically

vest and become exercisable in full as to all such Common Stock and other

equity securities subject thereto, (c) all restrictions with respect to

outstanding shares of Common Stock and other equity securities under any plans,

agreements, or other documents evidencing the options and other rights or

pursuant to which the options and other rights were granted (other than

restrictions on transfer under federal and applicable state securities laws),

including, but not limited to contractual restrictions on transfer, rights of

repurchase or first refusal in favor of the Company or any successor corporation

and restrictions on certificates of such Common Stock and other equity

securities (other than restrictions on certificates designed to ensure

compliance with federal and applicable state securities laws) shall

automatically terminate, and (c) such options and other rights shall remain

exercisable until a period of eighteen (18) months has elapsed following the

Change in Control or until the respective dates provided for exercise of such

options or other rights under any plans, agreements, or other documents by

which they are evidenced, whichever is later, notwithstanding any term or

provision to the contrary in any plans, agreement, or other documents

evidencing the options and other rights or pursuant to which the options and

other rights were granted.

 

                                                (b)                280G.  If, due to the benefits provided under

subsection 6.4(a) above, Employee is subject to any excise tax due to

characterization of any amounts payable under subsection 6.4(a) as excess

parachute payments pursuant to Section 4999 of the Internal Revenue code of

1986, as amended (the "Code"), Employee may elect, in Employee's sole

discretion, to reduce the amounts payable under subsection 6.4(a) in order to

avoid any "excess parachute payment" under Section 280G(b)(1) of the

Code.

 

                                                (c)                Change of

Control.  A Change of Control is

defined as any one of the following occurrences:

 

                                                                (i)                Any

"person" (as such term is used in Sections 13(d) and 14(d) of the

Securities Exchange Act of 1934 (the "Exchange Act")), other than a

trustee or other fiduciary holding securities of the Company under an employee

benefit plan of the company, becomes the "beneficial owner" (as

defined in Rule 13d-3 promulgated under the Exchange Act), directly or

indirectly, of the securities of the Company representing 50% or more of (A)

the outstanding shares of common stock of the Company or (B) the combined

voting power of the Company's then-outstanding securities; or

 

                                                                (ii)                the

sale or disposition of all or substantially all of the Company's assets (or any

transaction having similar effect is consummated); or

 

                                                                (iii)                the

Company is party to a merger or consolidation that results in the holders of

voting securities of the Company outstanding immediately prior thereto failing

to continue to represent (either by remaining outstanding or by being converted

into voting securities of the surviving entity) at least 50% of the combined

voting power of the voting securities of the Company or such surviving entity

outstanding immediately after such merger or consolidation; or

 

                                                                (iv)                the

dissolution or liquidation of the Company.

 

                                                (d)                Good Reason.  "Good Reason" shall be limited to

the happening within a period of eighteen (18) month following a Change in

Control of one of the following without Employee's express written consent:

 

                                                                (i)                A

material reduction in the level of Employee's responsibilities for the Company

in comparison to the level thereof at the time of the Change of Control;

 

                                                                (ii)                The

assignment to Employee of a job title that is not of comparable prestige and

status within the industry as Employee's job title at the time of the Change of

Control;

 

                                                                (iii)                The

assignment to Employee of any duties inconsistent with Employee's position with

the Company at the time of the Change of Control, other than pursuant to

Employee's promotion by the Company;

 

                                                                (iv)                A

material reduction in Employee's salary level;

 

                                                                (v)                A

material reduction in the overall level of employee benefits or perquisites

available to Employee at the time of the Change of Control or Employee's right

to participate therein, unless such reduction is nondiscriminatory as to

Employee;

 

                                                                (vi)                the

Company's requiring Employee to be based anywhere more than fifty (50) miles

from the business location to which Employee normally reported for work at the

time of the Change of Control, other than for required travel in connection

with the business of the Company not significantly greater than Employee's

business travel obligations at the time of the Change of Control; or

 

                                                                (vii)                Any

of the foregoing events and conditions occurring prior to the Change of Control

which Employee reasonably demonstrates was at the request of a third party or

otherwise arose in connection with or in anticipation of the Change of Control.

 

                                6.5                Termination

of Employment Upon Nonrenewal.  In

the event that either party decides not to renew this Agreement for a

subsequent one (1) year term in accordance with subparagraph 5.2 above, the

Agreement will expire, Employee's employment with the Company will terminate

and Employee will only be entitled to Employee's Base Salary paid through the

last day of the current term. All other Company obligations to Employee

pursuant to this Agreement will become automatically terminated and completely

extinguished. Employee will not be entitled to the Severance Payment

described in Section 6.2 above.

 

                7.                Key

Man Insurance.  Company shall have

the right to secure, in its own name or otherwise, and at its own expense,

life, disability, accident or other insurance covering Employee, and Employee

shall have no right, title or interest in or to such insurance. Employee shall

assist Company in procuring such insurance by submitting to reasonable

examination and signing such applications and other instruments as may be

required by the insurance carriers to which application is made for any such

insurance.

 

                8.                No

Conflict of Interest.  During the

term of Employee's employment with Company and during any period employee is

receiving payment from the Company. Employee must not engage in any work,

paid or unpaid, that creates an actual or potential conflict of interest with

Company. Such work shall include, but is not limited to, directly or indirectly

competing with Company in any way, or acting as an officer, director, employee,

consultant, stockholder, volunteer, lender, or agent of any business enterprise

of the same nature as, or which is in direct competition with, the business in

which Company is now engaged or in which Company becomes engaged during the

term of Employee's employment with Company, as may be determined by the Board

in its sole discretion. If the Board believes such a conflict exists during the

term of this Agreement, the Board may ask Employee to choose to discontinue the

other work or resign employment with Company. If the Board reasonably believes

such a conflict exists during any period in which Employee is receiving

payments from the Company, the Board may ask Employee to choose to discontinue

such work or forfeit the remaining severance payments. In addition, Employee agrees

not to refer any client or potential client of the Company to competitors of

Company, without obtaining Company's prior written consent, during the term of

the Employee's employment and during any period in which Employee is receiving

payments from the Company pursuant to this Agreement.

 

                9.                Confidentiality

and Proprietary Information. 

Employee agrees to read, sign, and abide by the Company's Employee

Innovations and Proprietary Rights Assignment Agreement, which is provided with

this Agreement and incorporated herein by reference.

 

                10.                Post-Termination

Non-Competition.

 

                                10.1                Consideration

For Promise To Refrain From Competing. 

Employee agrees that Employee's services are special and unique, that

the Company's disclosure of confidential, proprietary information and

specialized training and knowledge to Employee, and that Employee's level of

compensation and benefits and post-termination severance, as applicable, are

partly in consideration of and conditioned upon Employee not competing with the

Company. Employee acknowledges that such consideration for Employee's services

under this Agreement is adequate consideration for Employee's promises

contained within this section10.

 

                                10.2                Promise To

Refrain From Competing.  Employee

understands the Company's need for Employee's promise not to compete with the

Company is based on the following: (a) the Company has expended, and will

continue to expend, substantial time, money and effort in developing its

proprietary information; (b) Employee will in the course of Employee's

employment develop, be personally entrusted with and exposed to such

proprietary information; (c) both during and after the term of Employee's

employment, the Company will be engaged in the highly competitive industry of

directly marketing computer products and technologies; (d) the Company provides

products and services nationally and may provide products and services

internationally in the future; and (e) the Company will suffer great loss and

irreparable harm if Employee were to enter into competition with the Company.

Therefore, in exchange for the consideration described in subsection 10.1

above, Employee agrees that for the period of one (1) year following the date

Employee ceases to render services to the Company. Employee will not either

directly or indirectly, whether as a owner, director, officer, manager,

consultant, agent or employee: (i) work for a competitor, which is defined to

include any company directly or indirectly engaged, or known to Employee to be

preparing to engage in the direct marketing of computer products, or engaged in

any business that is directly competitive with any business the Company is

engaged, or is known to Employee to be preparing to engage, at the time the

Employee's employment with the company terminates, other than the Company, in

the United States ("Restricted Business"); or (ii) make or hold any

investment in any Restricted Business in the United States, whether such

investment be by way of loan, purchase of stock or otherwise, provided that

there shall be excluded from the foregoing the ownership of not more than 1% of

the listed or traded stock of any publicly held corporation. For purposes of

this section 10, the term "the Company" shall mean and include the

Company, any subsidiary or affiliate of the Company, any successor to the

business of the Company (by merger, consolidation, sale of assets or stock or

otherwise) and any other corporation or entity of which Employee may serve as a

director, officer or employee at the request of the Company or any successor of

the Company. Restricted Business' include, but are not limited to, CDW Computer

Centers, Inc., PC Connection, Inc., Insight Enterprises, Inc., IdeaMall, Inc,

and MicroWarehouse.

 

                                10.3                Reasonableness

of Restrictions.  Employee

represents and agrees that the restriction on competition, as to time,

geographic area, and scope of activity, required by this section 10 are

reasonable, do not impose a greater restraint than is necessary to protect the

goodwill and business interests of the company, and are not unduly burdensome

to Employee. Employee expressly acknowledges that the Company competes on a

nationwide basis and that the geographical scope of these limitations is

reasonable and necessary for the protection of the Company's trade secrets and

other confidential and proprietary information. Employee further agrees that

these restrictions mallow Employee an adequate number and variety of employment

alternatives, based on Employee's varied skills and abilities. Employee

represents that Employee is willing and able to compete in other employment not

prohibited by this Agreement.

 

                                10.4                Reformation

if Necessary.  In the event a court

of competent jurisdiction determines a that the geographic area, duration, or

scope of activity of any restriction under this section 10 and is subsections

is unenforceable, the restrictions under this section and its subsections shall

not be terminated but shall be reformed and modified to the extent required to

render them valid and enforceable. Employee further agrees that the court may

reform this Agreement to extend the one-year period of this covenant not to

compete by any amount of time equal to any period in which Employee is in

breach of this covenant.

 

                11.                Non-Solicitation.

 

                                11.1                Nonsolicitation

of Customers or Prospects.  Employee

acknowledges that information about the Company's customers is confidential and

constitutes trade secrets. Accordingly, Employee agrees that during the term of

this Agreement and for a period of one (1) year after the termination of this

Agreement, Employee will not, either directly or indirectly, separately or in

association with others, interfere with, impair, disrupt or damage the

Company's relationship with any of its customers or customer prospects by

soliciting or encouraging others to solicit any of them for the purpose of

diverting or taking away business from the Company.

 

                                11.2                Nonsolicitation

of the Company’s Employees. 

Employee agrees that during the term of this Agreement and for a period

of one (1) year after the termination of this Agreement, Employee will not,

either directly or indirectly, separately or in association with others,

interfere with, impair, disrupt or damage the Company’s business by soliciting,

encouraging or recruiting any of the Company’s employees or causing others to

solicit or encourage or recruit and of the Company’s employees to discontinue

their employment with the Company.

 

                12.                Nondisparagement.  Upon termination of Employee’s employment

relationship hereunder, the Company and Employee agree that, unless otherwise

legally required to do so, they will each at all times thereafter refrain from

discussing the circumstances relating to such termination and from disparaging,

or describing in a derogatory light, the performance, capabilities, services,

business practices, or ethics of the other (or of the officers, directors or

controlling shareholders of the other.) This provision does not apply to

statements made by Employee to Employee’s immediate family or attorneys, or to

statements made by either party in legal proceedings in conjunction with legal

actions to pursue rights and/or remedies under this Agreement.

 

                13.                Right

To Injunction Costs Of Enforcement. 

Employee acknowledges that the Company will suffer immediate and

irreparable harm that will not be compensable by damages alone in the event

Employee repudiates or breaches Section 9, 10, 11 or 12 or threatens or

attempts to do so. In the event of any such breach or any threatened or

attempted breach, Employee agrees that the Company, in addition to and not in

limitation of any other rights, remedies or damages available to it at law or

in equity, shall be entitled to obtain temporary, preliminary and permanent

injunctions to prevent or restrain any such breach, and the Company shall not be

required to post a bond as a condition for the granting of such relief.

 

                14.                Agreement

to Arbitrate.  To the fullest extent

permitted by law, Employee and Company agree to arbitrate any controversy,

claim or dispute between them arising out of or in any way related to this

Agreement, the employment relationship between Company and Employee and any

disputes upon termination of employment, including but not limited to breach of

contract, tort, discrimination, harassment, wrongful termination, demotion, discipline,

failure to accommodate, family and medical leave, compensation or benefits

claims, constitutional claims; and any claims for violation of any local, state

or federal law, statute, regulation or ordinance or common law. Claims for

workers’ compensation, unemployment insurance benefits and Company’s right to

obtain injunctive relief pursuant to Section 13 above are excluded. For the

purpose of this agreement to arbitrate, references to “Company” include all

parent, subsidiary or related entities and their employees, supervisors,

officers, directors, agents, pension or benefit plans, pension or benefit plan

sponsors, fiduciaries, administrators, affiliates and all successors and

assigns of any of them, and this agreement shall apply to them to the extent

Employee’s claims arise out of or relate to their actions on behalf of Company.

 

                                14.1                Consideration.  The mutual promise by Company and Employee

to arbitrate any and all disputes between them (except for those referenced

above) rather than litigate them before the courts or other bodies, provides

the consideration for this agreement to arbitrate.

 

                                14.2                Initiation

of Arbitration.  Either party may

exercise the right to arbitrate by providing the other party with written

notice of any and all claims forming the basis of such right in sufficient

detail to inform the other party of the substance of such claims. In no event

shall the request for arbitration be made after the date when institution of

legal or equitable proceedings based on such claims would be barred by the

applicable statute of limitations.

 

                                14.3                Arbitration

Procedure.  The arbitration will be

conducted in Seattle, Washington by a single neutral arbitrator and in

accordance with the then current rules for resolution of employment disputes of

the American Arbitration Association (“AAA”). The parties are entitled to

representation by an attorney or other representative of their choosing. The

arbitrator shall have the power to enter any award that could be entered by a

judge of the trial court of the State of Washington, and only such power, and

shall follow the law. In the event the arbitrator does not follow the law, the

arbitrator will have exceeded the scope of his or her authority and the parties

may, at their option, file a motion to vacate the award in court. The parties

agree to abide by and perform any award rendered by the arbitrator. Judgment on

the award may be entered in any court having jurisdiction thereof.

 

                                14.4                Costs of

Arbitration. Each party shall bear one half the cost of the arbitration

filing and hearing fees, and the cost of the arbitrator.

 

15.               

General Provisions.

 

                                15.1                Assignment.  The rights and obligations of the Company

under this this Agreement shall inure to the benefit of, and be binding upon,

the successors and assigns of the Company. Employee shall not be entitled to

assign any of Employee’s rights or obligations under this Agreement.

 

                                15.2                Waiver.  Either party’s failure to enforce any

provision of this Agreement shall not in any way be constructed as a waiver of

any such provision, or prevent that party thereafter from enforcing each and

every other provision of this Agreement.

 

                                15.3                Severability.  In the event any provision of this Agreement

is found to be enforceable by an arbitrator or court of competent jurisdiction,

such provision shall be deemed modified to the extent necessary to allow

enforceability of the provision as so limited, it being intended that the

parties shall receive the benefit contemplated herein to the fullest extent

permitted by law. If a deemed modification is not satisfactory in the judgment

of such arbitrator or court, the unenforceable provision shall be deemed

deleted, and the validity and enforceability of the remaining provisions shall

not be affected thereby.

                                15.4                Interpretation:

Construction.  The headings set

fourth in this Agreement are for convenience only and shall not be used in the

interpreting this Agreement. Legal counsel representing Company has drafted

this Agreement, but Employee has participated in the negotiation of its terms.

Furthermore, Employee acknowledges that Employee has had an opportunity to

review and revise the Agreement and have it reviewed by legal counsel, if

desired, and, therefore, the normal rule of construction to the effect that any

ambiguities are to be resolved against the drafting party shall not be employed

in the interpretation of this Agreement.

 

                                15.5                Employee’s

Likeness.  Company shall have the

right but not the obligation to use the Employee’s name or likeness for any

publicity or advertising purpose during the term of Employee’s employment with

Company.

 

                                15.6                Governing

Law.  This Agreement will be

governed by and construed in accordance with the laws of the United States and

the State of Washington. Each party consents to the jurisdiction and venue of

the state of federal courts in Seattle, Washington, if applicable, in any

action, suit, or proceeding arising out of or relating to this Agreement.

 

                                15.7                Attorneys’

Fees.  The prevailing party in any

action to enforce its rights under this Agreement shall be entitled to recover

from the other party its reasonable attorneys’ fees and costs, including and

costs incurred on appeal.

 

                                15.8                Notices.  Any notice required or permitted by this

Agreement shall be in writing and shall be delivered as follows with notice

deemed given as indicated:  (a) by

personal delivery when delivered personally; (b) by overnight courier upon

written verification of receipt; (c) by telecopy or facsimile transmission upon

acknowledgement of receipt of electronic transmission; or (d) five (5) days

following deposits in the U.S. Mail, certified or registered mail, postage

prepaid and return receipt requested. Notice shall be sent to the addresses set

forth below, or such other address as either party may specify in writing.

 

 

	

  If to the Company, to:

  	

  Multiple

  Zones, Inc.

  707 South Grady Way

  Renton, Washington 98055-3233

  
	

   

  	

   

  
	

  If to Employee, to:

  	

  Scott

  Koerner

  [                  ]

  

 

                                15.9                Survival.  Sections 8 (“No Conflict of Interest”), 9

(“Confidentiality and Proprietary Information”), 10 (“Post-Termination

Non-Competition”), 11 (“Nonsolicitation”), 12 (“Nondisparagement”), 15

(“General Provisions”) and 16 (“Entire Agreement”) of this Agreement shall

survive Employee’s employment by Company.

 

                16.                Entire

Agreement.  This Agreement,

including the Company’s Employee Innovations and Proprietary Rights Assignment

Agreement incorporated herein by reference and the Plan and related option

documents described in Subsection 2.3, constitutes the entire agreement between

the parties relating to this subject matter and supersedes all prior or

simultaneous representations, discussions, negotiations, and agreements,

whether written or oral. This Agreement may be amended or modified only with

the written consent of Employee and the Board. No oral waiver, amendment or

modification will be effective under any circumstances whatsoever.

 

THE PARTIES TO THIS AGREEMENT

HAVE READ THE FOREGOING AGREEMENT, AND FULLY UNDERSTAND EACH AND EVERY

PROVISION CONTAINED HEREIN, WHEREFORE, THE PARTIES HAVE EXECUTED AND MADE THIS

AGREEMENT EFFECTIVE AS OF THE DATE SET FORTH ABOVE.

 

	

  “The

  Company”

  	

  MULTIPLE ZONES, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

    /s/ 

  Firoz H. Lalji

  
	

   

  	

   

  	

  Firoz H.

  Lalji, President and CEO

  
	

   

  	

   

  	

   

  
	

  “Employee”

  	

     /s/ 

  Scott Koerner

  
	

   

  	

  Scott

  KoernerDONAR ENTERPRISES, INC. - EXHIBIT 10.1

EXHIBIT 10.1 - LOAN AGREEMENT WITH WILLIAM TAY

                            William Tay
                  1422 Chestnut Street, Suite #410
                  Philadelphia, Pennsylvania 19102
                           (215) 893-3662

                          November 1, 2001

  Donar Enterprises, Inc.
  1422 Chestnut Street
  Suite #410
  Philadelphia, PA 19102

  Dear Sirs:

         I hereby agree to lend Donar Enterprises, Inc., a
  Delaware corporation (the "Company"), up to $25,000 to the
  extent needed and requested by the Company.

         Such loans will be represented by promissory notes
  bearing interest at 10% per annum and due and payable on or
  before June 30, 2003 in lawful money of the United States of
  America at 1422 Chestnut Street, Suite #410, Philadelphia,
  Pennsylvania 19102 or such other address as the holder may
  specify by written notice to the Company. In addition, such
  promissory notes shall include the following terms and conditions:

           -  The Company may, at its option, prepay the note in
           whole or in part without premium but with accrued
           interest;

           -  The holder, at its option, may make extensions of
           the time for payments of the indebtedness or accept
           a renewal note, all without notice, and the Company
           consents to such extensions or renewals, all without
           notice and agrees that any such action shall not
           release it from any liability thereunder;

           -  The Company waives presentment for payment,
           demand, protest, notice of dishonor, notice of
           non-payment of the note and diligence in the
           collection thereof, as conditions of liability under
           the note and also waives trial of jury, counterclaim
           or set-off in the event of litigation by holder to
           enforce payment of the note;

           -  In the event of default under the note, holder
           may take all actions in law and in equity to collect
           on the note and the Company agrees to pay the holder
           such further amount as shall be sufficient to cover
           the costs and expenses of collection, including
           without limitation, reasonable attorney's fees for
           all services rendered in that connection;

           -  The Note may not be changed or terminated orally
           and shall be construed and enforced according to the
           laws of the State of Pennsylvania.

                                      Very truly yours,

                                      /s/ William Tay
                                      ------------------------
                                      William Tay

                                 -63-

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