Document:

exv10w72

 

Exhibit 10.72

AGREEMENT

     AGREEMENT (this “Agreement”) dated as of September 30, 2007 (the “Effective Date”), by and
between SYNTAX-BRILLIAN CORPORATION, a Delaware corporation (the “Company”), and VINCENT F.
SOLLITTO, JR. (“Sollitto”).

RECITALS

     A. Sollitto is employed under an employment agreement (the “Employment Agreement”).

     B. On September 30, 2007, the Board of Directors appointed Sollitto as Executive Chairman of
the Board of Directors of the Company.

     C. The Company and Sollitto desire to confirm the terms and conditions of the engagement of
Sollitto as Executive Chairman of the Board of Directors.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual promises, terms, covenants, and conditions set
forth herein and the performance of each, it is hereby agreed as follows:

     1. Duties.

          (a) Engagement. The Company hereby engages Sollitto, and Sollitto hereby agrees to act, as
the Executive Chairman of the Board of Directors of the Company. As such, Sollitto shall have
responsibilities, duties, and authority reasonably accorded to, expected of, and consistent with
Sollitto’s position. Sollitto hereby accepts this engagement upon the terms and conditions herein
contained. Sollitto shall provide such services to the Company’s subsidiaries as may be requested
from time to time by the Board of Directors without additional compensation.

          (b) Policies. Sollitto shall faithfully adhere to, execute, and fulfill all lawful policies
established by the Company.

     2. Compensation. For all services rendered by Sollitto, the Company shall compensate Sollitto as follows:

          (a) Base Salary. Effective on the Effective Date, the base salary payable to Sollitto shall
be $340,000 per year, payable on a regular basis in accordance with the Company’s standard payroll
procedures, but not less than monthly.

          (b) Stock Options. All stock options held by Sollitto shall vest on the date of this
Agreement and shall remain in full force and effect during the term of Sollitto’s engagement under
this Agreement.

 

 

          (c) Perquisites, Benefits, and Other Compensation. Sollitto shall be entitled to receive
additional benefits and compensation from the Company in such form and to such extent as specified
below:

               (i) Insurance Coverage. Payment of all premiums for coverage for Sollitto and Sollitto’s
dependent family members under all health, hospitalization, disability, dental, life, and other
insurance plans that the Company may have in effect from time to time, with the benefits provided
to Sollitto to be on terms no less favorable than the benefits provided to other Company executive
officers but with any generally applicable limitations, such as co-payment provisions.

               (ii) Reimbursement for Expenses. Reimbursement for business travel and other out-of-pocket
expenses reasonably incurred by Sollitto in the performance of Sollitto’s services under this
Agreement. All reimbursable expenses shall be appropriately documented in reasonable detail by
Sollitto upon submission of any request for reimbursement and shall be in a format and manner
consistent with the Company’s expense reporting policy.

               (iii) Vacation. Paid vacation in accordance with the applicable policy of the Company as in
effect from time to time for senior executives, but in no event shall Sollitto be entitled to less
than two weeks paid vacation per year.

               (iv) Other Perquisites. The Company shall provide Sollitto with other executive perquisites
as may be made available to or deemed appropriate for Sollitto by the Board or a committee of the
Board and participation in all other Company-wide employee benefits as are available to the
Company’s executives from time to time, including any plans, programs, or arrangements relating to
retirement, deferred compensation, profit sharing, 401(k), and employee stock ownership

     3. Non-Competition Agreement.

          (a) Non-Competition. Notwithstanding the provisions of California law, including, without
limitation, Bus. & Prof. Code Secs. 16600 et. seq. and 17200 et. sec., the parties agree that,
during the period of Sollitto’s engagement by the Company, and for a period equal to the time
during or for which payments are being made by the Company to Sollitto in accordance with this
Agreement, Sollitto shall not, directly or indirectly, for himself or on behalf of or in
conjunction with any other person:

               (i) Other Activities. Engage, as an officer, director, shareholder, owner, principal,
partner, lender, joint venturer, employee, independent contractor, consultant, advisor, or sales
representative, in any Competitive Business within the Restricted Territory;

               (ii) Solicitation of Employees. Call upon any person who is, at that time, within the
Restricted Territory, an employee of the Company or any of its subsidiaries, in a managerial or
supervisory capacity for the purpose or with the intent of enticing such employee away from or out
of the employ of the Company or any of its subsidiaries;

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               (iii) Solicitation of Customers. Call upon any person who is, at that time, or who has been,
within one year prior to that time, a customer of the Company or any of its subsidiaries, within
the Restricted Territory for the purpose of soliciting or selling products or services in direct
competition with the Company or any of its subsidiaries within the Restricted Territory;

               (iv) Solicitation of Acquisition Candidates. Call upon any prospective acquisition candidate,
on Sollitto’s own behalf or on behalf of any person, which candidate was, to Sollitto’s knowledge
after due inquiry, either called upon by the Company, or for which the Company made an acquisition
analysis, for the purpose of acquiring such candidate.

          (b) Certain Definitions. As used in this Agreement, the following terms shall have the
meanings ascribed to them:

               (i) Competitive Business shall mean any business that is the same as, similar to, or in direct
competition with the business of the Company;

               (ii) person shall mean any individual, corporation, limited liability company, partnership,
firm, or other business of whatever nature;

               (iii) Restricted Territory shall mean any jurisdiction in which the Company or any subsidiary
of the Company maintains any facilities, sells any products, or provides any services; and

               (iv) subsidiary shall mean the Company’s consolidated subsidiaries, including corporations,
partnerships, limited liability companies, and any other business organization in which the Company
holds at least a fifty percent equity interest.

          (c) Enforcement. Because of the difficulty of measuring economic losses to the Company as a
result of a breach of the foregoing covenants in this paragraph 3, and because of the immediate and
irreparable damage that could be caused to the Company for which it would have no other adequate
remedy, Sollitto agrees that the foregoing covenants may be enforced by the Company in the event of
breach by Sollitto, by injunctions and restraining orders.

          (d) Reasonable Restraint. In agreeing to the period of non-competition as set forth herein,
Sollitto acknowledges that he has had the opportunity to speak with counsel of his choice in
connection with the force and effect of this waiver, and that he is aware that he is waiving rights
under California law to contest the imposition of a non-competition agreement. In agreeing to be
bound hereby, Sollitto is accepting the consideration extended to him in exchange for a knowing
waiver of his rights, and as full and complete consideration for this waiver, and acknowledges the
adequacy of such consideration. Both parties agree that Sollitto’s agreement to this term
constitutes a substantial and material term to the Company, without which the Company would not
enter into this Agreement or extend this offer of engagement to Sollitto. Sollitto agrees that the
Company may seek and secure an injunction against Sollitto in order to enforce the terms hereof in
the event that Sollitto breaches this provision. Sollitto acknowledges that the scope of the
non-competition clause is reasonable

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in scope and will not preclude him from seeking gainful employment in alternative fields. To
the extent that any court of competent jurisdiction determines that the non-competition provisions
are unreasonable, it is the intent of the parties to enforce the terms hereof to the full extent
held reasonable.

          (e) Other Activities. It is further agreed by the parties that, in the event that Sollitto
shall cease to be engaged hereunder and enters into a business or pursues other activities not in
competition with the Company (including the Company’s subsidiaries), or similar activities or
business in locations, the operation of which, under such circumstances, does not violate this
paragraph 3, and in any event such new business, activities, or location are not in violation of
this paragraph 3 or of Sollitto’s obligations under this paragraph 3, if any, Sollitto shall not be
chargeable with a violation of this paragraph 3 if the Company (including the Company’s
subsidiaries) shall thereafter enter the same, similar, or a competitive (i) business, (ii) course
of activities, or (iii) location, as applicable.

          (f) Separate Covenants. The covenants in this paragraph 3 are severable and separate, and the
unenforceability of any specific covenant shall not affect the provisions of any other covenant.
Moreover, in the event any court of competent jurisdiction shall determine that the scope, time, or
territorial restrictions set forth are unreasonable, then it is the intention of the parties that
such restrictions be enforced to the fullest extent that the court deems reasonable, and the
Agreement shall thereby be reformed.

          (g) Independent Agreement. All of the covenants in this paragraph 3 shall be construed as an
agreement independent of any other provision in this Agreement, and the existence of any claim or
cause of action of Sollitto against the Company, whether predicated on this Agreement or otherwise,
shall not constitute a defense to the enforcement by the Company of such covenants. It is
specifically agreed that the period following termination of employment stated at the beginning of
this paragraph 3, during which the agreements and covenants of Sollitto made in this paragraph 3
shall be effective, shall be computed by excluding from such computation any time during which
Sollitto is in violation of any provision of this paragraph 3.

     4. Term; Termination; Rights on Termination.

          (a) Term. The term of Sollitto’s engagement under this Agreement (the “Term”) shall be from
the Effective Date until the date that is two years from the Effective Date. Following the end of
the Term, Sollitto shall provide consulting services to the Company involving not more than ten
hours in any month during which period Sollitto’s options shall remain in full force and effect.

          (b) Termination. Sollitto’s engagement under this Agreement may be terminated in any one of
the followings ways:

               (i) Death of Sollitto. The engagement of Sollitto shall terminate immediately upon Sollitto’s
death provided that the Company shall, for a period of 12 months following such death, pay to the
estate of Sollitto an amount equal to Sollitto’s base salary and continue to pay all premiums for
coverage for Sollitto’s dependent family members

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under all health, hospitalization, disability, dental, life, and other insurance plans that
the Company maintained at the time of Sollitto’s death.

               (ii) Disability of Sollitto. If, as a result of incapacity due to physical or mental illness
or injury, Sollitto shall have been absent from Sollitto’s full-time duties hereunder for six
consecutive months, then 30 days after giving written notice to Sollitto (which notice may occur
before or after the end of such six month-period, but which shall not be effective earlier than the
last day of such six month-period), the Company may terminate Sollitto’s engagement provided
Sollitto is unable to resume Sollitto’s full-time duties at the conclusion of such notice period.
Also, Sollitto may terminate Sollitto’s engagement if Sollitto’s health should become impaired to
an extent that makes the continued performance of Sollitto’s duties hereunder hazardous to
Sollitto’s physical or mental health or Sollitto’s life, provided that Sollitto shall have
furnished the Company with a written statement from a qualified doctor to such effect and provided,
further, that, at the Company’s request made within 10 days of the date of such written statement,
Sollitto shall submit to an examination by a doctor selected by the Company who is reasonably
acceptable to Sollitto or Sollitto’s doctor and such doctor shall have concurred in the conclusion
of Sollitto’s doctor. In the event Sollitto’s engagement under this Agreement is terminated as a
result of Sollitto’s disability, Sollitto shall receive from the Company, in a lump-sum payment due
within 10 days of the effective date of such termination, an amount equal to the base salary
payable to Sollitto pursuant to paragraph 2(a) of this Agreement, for the lesser of the time period
then remaining under the Term or one year. The disability benefits provided for in this Agreement
are independent of any disability insurance benefits that Sollitto receives.

          (c) Payments to Termination Date. Upon termination of Sollitto’s engagement under this
Agreement for any reason provided above, Sollitto shall be entitled to receive all compensation
earned and all benefits and reimbursements due through the effective date of termination.
Additional compensation subsequent to termination, if any, will be due and payable to Sollitto only
to the extent and in the manner expressly provided above. All other rights and obligations of the
Company and Sollitto under this Agreement shall cease as of the effective date of termination,
except that the Company’s obligations under paragraph 8 (relating to indemnification of Sollitto)
and Sollitto’s obligations under paragraph 3 (relating to non-competition and non-solicitation, as
applicable), paragraph 5 (relating to return of Company property), paragraph 6 (relating to
inventions), and paragraph 7 (relating to trade secrets).

          (d) Mitigation. In the event Sollitto commences employment with a third party during the
Term, the Company shall continue to pay Sollitto’s compensation under paragraph 2(a) for the lesser
of the time period then remaining under the Term or six months.

     5. Return of Company Property. All records, designs, patents, business plans, financial
statements, manuals, memoranda, lists, and other property delivered to or compiled by Sollitto by
or on behalf of the Company (or its subsidiaries) or its representatives, vendors, or customers
that pertain to the business of the Company (or its subsidiaries) shall be and remain the property
of the Company and be subject at all times to its discretion and control. Likewise, all
correspondence, reports, records, charts, advertising materials, and other similar data pertaining
to the business, activities, or future plans of the Company (or its subsidiaries) that

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is collected by Sollitto shall be delivered promptly to the Company without request by it upon
termination of Sollitto’s employment.

     6. Inventions. Sollitto shall disclose promptly to the Company any and all significant
conceptions and ideas for inventions, improvements, and valuable discoveries, whether patentable or
not, which are conceived or made by Sollitto, solely or jointly with another, during the period of
engagement, and which are directly related to the business or activities of the Company (or its
subsidiaries), and which Sollitto conceives as a result of Sollitto’s engagement by the Company.
Sollitto hereby assigns and agrees to assign all Sollitto’s interests therein to the Company or its
nominee. Whenever requested to do so by the Company, Sollitto shall execute any and all
applications, assignments, and other instruments that the Company shall deem necessary to apply for
and obtain Letters Patent of the United States or any foreign country or to otherwise protect the
Company’s interest therein.

     7. Trade Secrets. Sollitto agrees that Sollitto will not, during or after the period of
engagement under this Agreement, disclose the specific terms of the Company’s relationships or
agreements with its respective significant vendors or customers, or any other significant and
material trade secret of the Company, whether in existence or proposed, to any person, firm,
partnership, corporation, or business for any reason or purpose whatsoever.

     8. Indemnification. In the event Sollitto is made a party to any threatened, pending, or
completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative
(other than an action by the Company against Sollitto), by reason of the fact that Sollitto is or
was performing services under this Agreement, then the Company shall indemnify Sollitto against all
expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement, as actually
and reasonably incurred by Sollitto in connection therewith to the maximum extent permitted by
applicable law. The advancement of expenses shall be mandatory. In the event that both Sollitto
and the Company are made a party to the same third-party action, complaint, suit, or proceeding,
the Company agrees to engage competent legal representation, and Sollitto agrees to use the same
representation, provided that if counsel selected by the Company shall have a conflict of interest
that prevents such counsel from representing Sollitto, Sollitto may engage separate counsel and the
Company shall pay all attorneys’ fees of such separate counsel. Further, while Sollitto is
expected at all times to use Sollitto’s best efforts to faithfully discharge Sollitto’s duties
under this Agreement, Sollitto cannot be held liable to the Company for errors or omissions made in
good faith if Sollitto has not exhibited gross, willful, and wanton negligence and misconduct or
performed criminal and fraudulent acts that materially damage the business of the Company.
Notwithstanding this paragraph 8, the provision of any written indemnification agreement applicable
to the directors and officers of the Company to which Sollitto shall be a party shall apply rather
than this paragraph 8 to the extent inconsistent with this paragraph 8. Sollitto shall cooperate
with the Company without additional compensation in any litigation involving the Company during the
Term.

     9. Nondisparagement. The Company and its officers or directors on the one hand and Sollitto
on the other hand shall not disparage the other. Sollitto shall cooperate in any litigation
involving the Company.

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     10. Assignment; Binding Effect. Sollitto understands that Sollitto is being engaged by the
Company on the basis of Sollitto’s personal qualifications, experience, and skills. Sollitto
agrees, therefore, Sollitto cannot assign all or any portion of Sollitto’s performance under this
Agreement. Subject to the preceding two sentences and the express provisions of paragraph 11
below, this Agreement shall be binding upon, inure to the benefit of and be enforceable by the
parties hereto and their respective heirs, legal representatives, successors, and assigns.

     11. Complete Agreement. This Agreement replaces the Employment Agreement, which shall have no
further force and effect. This Agreement is not a promise of future employment. Except as
specifically provided herein, Sollitto has no oral representations, understandings, or agreements
with the Company or any of its officers, directors, or representatives covering the same subject
matter as this Agreement. This written Agreement is the final, complete, and exclusive statement
and expression of the agreement between the Company and Sollitto and of all the terms of this
Agreement, and it cannot be varied, contradicted, or supplemented by evidence of any prior or
contemporaneous oral or written agreements. This written Agreement may not be later modified
except by a further writing signed by a duly authorized officer of the Company and Sollitto, and no
term of this Agreement may be waived except by writing signed by the party waiving the benefit of
such term. This Agreement hereby supersedes any other employment agreements or understandings,
written or oral, between the Company and Sollitto.

     12. Notice. Whenever any notice is required hereunder, it shall be given in writing addressed
as follows:

	 	 	 	 	 
	 

	 	To the Company:
	 	1600 N. Desert Drive
	 

	 	 	 	Tempe, Arizona 85251
	 

	 	 	 	Attention: John Hodgson
	 
	 	 	 	 
	 

	 	To Sollitto:
	 	To the residence address of Sollitto
	 

	 	 	 	as shown in the records of the Company

     Notice shall be deemed given and effective on the earlier of three days after the deposit in
the U.S. mail of a writing addressed as above and sent first class mail, certified, return receipt
requested, or when actually received. Either party may change the address for notice by notifying
the other party of such change in accordance with this paragraph 12.

     13. Severability; Headings. If any portion of this Agreement is held invalid or inoperative,
the other portions of this Agreement shall be deemed valid and operative and, so far as is
reasonable and possible, effect shall be given to the intent manifested by the portion held invalid
or inoperative. The paragraph headings herein are for reference purposes only and are not intended
in any way to describe, interpret, define or limit the extent or intent of the Agreement or of any
part hereof.

     14. No Participation in Severance Plans. Except as contemplated by this Agreement, Sollitto
acknowledges and agrees that the compensation and other benefits set forth in this Agreement are
and shall be in lieu of any compensation or other benefits that may otherwise be payable to or on
behalf of Sollitto pursuant to the terms of any severance pay

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arrangement of the Company or any affiliate thereof, or any other similar arrangement of the
Company or any affiliates thereof providing for benefits upon involuntary termination of
employment.

     15. Governing Law. This Agreement shall in all respects be construed according to the laws of
the state of Arizona, notwithstanding the conflict of laws provisions of such state.

     16. Counterparts; Facsimile Signatures. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall constitute the same
agreement. This Agreement may be executed by facsimile, PDF, or other electronic means.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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

	 	 	 	 	 	 	 
	 	 	SYNTAX-BRILLIAN CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ James Li
 

James Li
	 	 
	 

	 	Its:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	SOLLITTO:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Vincent F. Sollitto, Jr.	 	 
	 	 	 	 	 
	 	 	Vincent F. Sollitto, Jr.	 	 

9ex10_1.htm

     

    Exhibit
      10.1

     

    

      AMENDMENT
        TO EMPLOYMENT AGREEMENT

      

      This
        Amendment to Employment Agreement
        (“Amendment”) amends that certain Employment Agreement (“Employment Agreement”)
        dated as of April 23, 2007 among KRISPY KREME DOUGHNUT CORPORATION, a North
        Carolina corporation, KRISPY KREME DOUGHNUTS, INC., a North Carolina corporation
        and SANDRA K. MICHEL (“Employee”).

      

      1.           All
        terms used in this Amendment shall have the same definition and meaning as
        in
        the Employment Agreement.

      

      2.           Section
        4.05 of the Employment Agreement is hereby amended in its entirety as
        follows:

      

      SECTION
        4.05.  Stock Options. The Company shall grant to the
        Executive options to purchase 100,000 shares of its common stock (the
“Option Shares”) at an exercise price per share equal to the
        fair market value per share on the date of grant (the “Exercise Price”) which is
        expected to be April 23, 2007.  One half of the options (specifically,
        50,000 shares) will vest and become exercisable in four equal installments,
        on
        the first, second, third and fourth anniversaries of the Effective Date,
        so long
        as, except as otherwise set forth in the applicable stock option plan, the
        Executive’s employment continues through such vesting dates. The other half of
        the options (specifically, 50,000 shares) will vest based upon the performance
        of the Companies, with (i) one half of these options (specifically 25,000
        shares) to vest if and when the following two conditions have occurred: (a)
        two
        years have elapsed since the Effective Date and (b) following the Effective
        Date, the closing price per share of the Company’s stock on the principal
        securities exchange on which the Company’s shares are then traded has exceeded
        120% of the Exercise Price for a period of ten consecutive trading days and
        (ii)
        the remaining one half of these options (specifically 25,000 shares) to vest
        if
        and when the following two conditions have occurred: (a) two years have elapsed
        since the Effective Date and (b) following the Effective Date, the closing
        price
        per share of the Company’s stock on the principal securities exchange on which
        the Company’s shares are then traded has exceeded 140% of the Exercise Price for
        a period of ten consecutive trading days.  The term of the options
        will be ten years from the date of grant, subject to earlier termination
        in the
        event the Executive’s employment terminates.  The Option Shares will
        be registered as soon as practicable on Form S-8 under the Securities Act,
        if
        not currently registered. The Option Shares shall be subject to the terms
        of the
        Krispy Kreme Doughnuts, Inc. 2000 Stock Incentive Plan, and the option grant
        agreement for Executive’s Option Shares shall have terms similar to those of
        other executive vice presidents of the Companies.  The Option Shares
        shall also be subject to, and Executive agrees to comply with, the ownership
        guidelines adopted by the Companies as may be applicable to the option shares
        of
        the Companies’ executive vice presidents.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      3.           Section
        4.06 of the Employment Agreement is hereby amended in its entirety as
        follows:

      

      SECTION
        4.06.  Restricted Shares. The Company shall grant to the
        Executive 20,000 restricted shares of the Company’s common stock (the
“Restricted Shares”). Except as otherwise provided below, the
        Restricted Shares will vest, provided that the Executive’s employment continues
        through the applicable vesting dates, in four equal installments, on the
        first,
        second, third and fourth anniversaries of the Effective Date. The Executive
        hereby agrees to appropriate legends and transfer restrictions on the Restricted
        Shares in order to reflect such vesting provisions. The Restricted Shares
        will
        be registered as soon as practicable on Form S-8 under the Securities Act,
        if
        not currently registered.  The Restricted Shares shall be subject to
        the terms of the Krispy Kreme Doughnuts, Inc. 2000 Stock Incentive
        Plan.  The Restricted Shares shall also be subject to, and Executive
        agrees to comply with, the ownership guidelines adopted by the Companies
        as may
        be applicable to the restricted shares of the Companies’ executive vice
        presidents.

      

      4.           All
        other terms and conditions of the Employment Agreement remain in full force
        and
        effect.

      

      IN
        WITNESS WHEREOF, the parties hereto
        have executed this Amendment this 3rd day of October, 2007.

      

      
        	 	
                KRISPY
                  KREME DOUGHNUTS, INC.

              
	 	 
	 	
                BY: 
                  /s/ James H. Morgan

              
	 	
                         Chairman
                  of the Board

              
	 	 
	 	 
	 	
                KRISPY
                  KREME DOUGHNUT CORPORATION

              
	 	 
	 	
                BY:  
                  /s/ Douglas R. Muir

              
	 	
                        
                  Chief Financial Officer

              
	 	 
	 	
                EMPLOYEE:

              
	 	 
	 	
                        
                  /s/ Sandra K. Michel

              

      

      

      
 

       

      2

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