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exhibit420.htm - Provided by MZ Technologies

 

Exhibit 4.20

AMENDMENT TO THE CONTACT SERVICE CENTER AGREEMENT BETWEEN ORBITALL SERVIÇOS E PROCESSAMENTO DE INFORMAÇÕES COMERCIAIS S.A. AND TNL CONTAX S.A.  

 

Through the present instrument,

 ORBITALL SERVIÇOS E PROCESSAMENTO DE INFORMAÇÕES COMERCIAIS S.A., current denomination of ORBITALL SERVIÇOS E PROCESSAMENTO DE INFORMAÇÕES COMERCIAIS LTDA, a corporation with registered offices at Rua Manoel Coelho, no. 600, 1o Piso, in the city of São Caetano do Sul, State of São Paulo, enrolled under the Corporate Taxpayer ́s ID (CNPJ/MF) number 00.006.878/0001-34, represented as per its by-laws, hereinafter referred to as (“Contractor”); and 

TNL CONTAX S.A., a corporation with registered offices at Rua da Passeio, no 48 ao 56 - Parte, in the city and State of Rio de Janeiro, enrolled under the Corporate Taxpayer ́s ID (CNPJ/MF) number 02.757.614/0001-48, represented as per its by-laws, hereinafter referred to as (“Contracted Party”, and collectively referred to as “Parties”); 

WHEREAS the PARTIES entered into a Contact Center Service Agreement dated April 1, 2004, identified as CN 0988/04 (“Contract”);

WHEREAS, on December 5, 2007, the Contract Party sent to the Contractor, a Letter of Compliance to the Probare Seal, informing the Contractor, among other points, that to obtain such certification, it would require some adjustments to the Agreement, regarding the statement of veracity of the products and services information of the Contractor, the suitability of the customer list and the timetable for completion of active contacts, with the Contractor approving the Letter on December 6, 2007.

The PARTIES decide to enter into the present amendment to the AGREEMENT, which shall be regulated by the following additional terms and conditions:

SECTION ONE – CHANGES TO THE AGREEMENT:

1.1      Clause 6.1 of this Agreement will have the following sub-items included:

 

“(d) Dispose to the Contracted Party the information necessary for the performance of the services rendered under the agreement, full responsibility for the accuracy of the content of the information provided, for the products available to its client, as well as for the operational guidelines provided, keeping the Contracted Party invulnerable from any liability for such information.”

“(e) The CONTRACTORS hereby declare that the products and services marketed by them conform to the specifications and licenses current legal, concerning the manufacture, marketing and media exposure to the consumer, as well as in accordance with the provisions of Law no. 8,078/90.”

 

1.2      The Parties agree to include Annex VII – Operating Agreements – Services, sub-item 1.1, “a”, of the present Agreement, the following wording:

 

“All active operations contracted between the Parties will run from Monday to Friday, from 9h00 until 21h00 and Saturdays, from 10h00 until 16h00, with active contacts not being allowed on Sundays and national holidays.”

 

SECTION TWO – FINAL PROVISIONS:

2.1 The terms, items and sub-items included in the Original Agreement which are not changed by this Amendment remain unaltered and in full force and are ratified for all legal purposes.

 

 

In witness whereof, the parties execute this present instrument in two (2) counterparts of equal content and form, before two (2) witnesses.

São Paulo, June 29, 2009.

 

____________________________

ORBITALL SERVIÇOS E PROCESSAMENTO DE

INFORMAÇÕES COMERCIAIS

 

________________________                     _________________________

 

TNL CONTAX S.A.

 

 

WITNESSES

________________________                     _________________________

Name:                                                               Name:

CPF/ME:                                                           CPF/ME:EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated June 28, 2010 (the “Effective Date”), is
entered into by and between AVATECH SOLUTIONS, INC., a Delaware corporation (the “Company”), and
George Davis (“Executive”).

WHEREAS, Executive currently serves as the Chief Executive Officer of the Company.

WHEREAS, the Company and Executive desire to evidence the terms and conditions of Executive’s
continued service as Chief Executive Officer by a written agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and Executive agree as follows:

1. Employment. Subject to the terms and conditions set forth herein, Executive shall
serve as Chief Executive Officer of the Company.

2. Term. The term of Executive’s employment under this Agreement (the “Term”) will
commence on the Effective Date and will continue through June 30, 2011, subject to earlier
termination as set forth herein. This Agreement shall be renewable on July 1, 2011 by mutual
agreement of the parties and continue through the fiscal year ending June 30, 2012.

3. Duties. Executive will report to, and Executive’s specific responsibilities and
authority will be established by, the Board of Directors or, acting on its behalf, the Executive
Committee, of the Company. Executive will diligently and conscientiously devote all of his
business time and attention and best efforts in discharging his duties to the Company.

4. Compensation and Benefits.

4.1. Base Compensation. During the Term, the Company will pay Executive a base salary
(the “Base Salary”) at an annual rate of $250,000, which shall be paid in accordance with the
Company’s normal payroll practices for its salaried executive employees from time to time in
effect.

4.2. Incentive Compensation.

4.2.1. Confirmation of Prior Option Grants. On December 1, 2006, in connection with
joining the Company, the Company granted Executive an option to purchase 100,000 shares of common
stock of the Company (the “Common Stock”) pursuant to the Company’s standard Form of Option, which
option vests as set forth in Exhibit A hereto (the “2006 Option”). Pursuant to an Amended and
Restated Employment Agreement dated as of September 12, 2007, the Company granted Executive an
option to purchase up to 200,000 shares of the Common Stock, which option is subject to the terms
and conditions set forth in Exhibit B hereto (the “2007 Option”). The Company hereby ratifies and
confirms the grants of the 2006 Option and the 2007 Option and the terms and conditions thereof,
including, without limitation, Exhibit A and Exhibit B hereto.

4.2.2. Additional Incentive Compensation. Executive shall be entitled to receive such
additional incentive compensation and to participate in such additional incentive compensation
programs as the Board of Directors and/or its Compensation Committee may from time to time grant or
establish.

4.3. Benefit Plans and Fringe Benefits.

4.3.1. Employee Benefit Plan Participation. During the Term, Executive will be
entitled to participate in any and all employee benefit programs (including but not limited to
medical, vision, prescription drug, dental, disability, employee and group life, accidental death
and travel accident, and section 401(k) plans and programs) offered by the Company to its
executives or to its employees generally to the extent the provisions, rules, and regulations of
such plans make Executive eligible for participation therein, and Executive may receive such other
benefits as the Company may determine from time to time.

4.3.2. Perquisites. Executive will be entitled to perquisites comparable to those
that the Company makes available from time to time to its senior executive employees.

4.3.3. Reimbursement of Expenses. The Company will reimburse Executive for business
travel, lodging, meals, and other reasonable business expenses incurred by him in the performance
of services hereunder subject to submission of documentation in accordance with the Company’s
business expense reimbursement policies from time to time applicable to its senior executives.

4.3.4. Stock Purchase Plan. Executive shall be entitled to participate in the
Company’s Employee Stock Purchase Plan to the extent the terms of such plan make him eligible
therefor.

5. Termination.

5.1. Right to Terminate. The Company may, at its election and upon written notice to
the Executive, terminate the Executive’s employment under this Agreement prior to the expiration of
the Term for any reason or no reason, with or without Cause (as defined below). Similarly,
Executive may, at his election and upon written notice to the Company, voluntarily terminate his
employment with the Company prior to the expiration of the Term at any time.

5.2. Payment of Accrued Base Salary and Benefits; Options. Upon the termination of
Executive’s employment, whether pursuant to this Section 5 or upon the expiration of the Term, (a)
the Company shall pay to Executive all unpaid Base Salary and benefits, as described herein, that
have accrued through the date of such termination, and (b) all unexercised stock options, or
portions thereof, held by Executive as of the date of termination shall vest or terminate and be
exercisable in accordance with their terms.

5.3. Payments Upon Termination Without Cause. In addition to the payments and
benefits to be made or provided pursuant to Section 5.2 but notwithstanding paragraph (b) thereof,
if the Company terminates Executive’s employment without Cause (as defined below), then (a) the
Company shall continue to make salary payments to Executive at his then current Base Salary level
for a period of six months from the date of termination, (b) Executive shall be entitled to the
post-termination medical benefits as provided in Section 5.5, and (c) all unexercised stock
options, or portions thereof, held by Executive as of the date of termination shall vest in full,
regardless of their original vesting schedules, and shall be exercisable for a period of one year
from the date of termination.

5.4. Payments Upon Termination by Executive for Good Reason. In addition to the
payments and benefits to be made or provided pursuant to Section 5.2 but notwithstanding paragraph
(b) thereof, if Executive terminates his employment with the Company for Good Reason (as defined in
Section 5.8.2), then (a) the Company shall continue to make salary payments to Executive at his
then current Base Salary level for a period of six months from the date of termination, (b)
Executive shall be entitled to the post-termination medical benefits as provided in Section 5.5,
and (c) all unexercised stock options, or portions thereof, held by Executive as of the date of
termination shall vest in full, regardless of their original vesting schedules, and shall be
exercisable for a period of one year from the date of termination.

5.5. Post-Termination Medical Benefits.

5.5.1. Continued Benefits. Subject to Section 5.5.2, if Executive’s employment is
terminated pursuant to Section 5.3 or Section 5.4, then:

5.5.1.1. for each month following the date of termination that Executive remains eligible for
continuation coverage under the federal Consolidated Omnibus Budget Reconciliation Act (“COBRA”),
the Company will waive, for up to 24 months, any payments that it would otherwise charge to
Executive for COBRA family coverage; and

5.5.1.2. after Executive is no longer eligible for COBRA coverage, until the earlier of (a) 24
months following the date of termination or (b) 18 months following the date on which Executive
becomes ineligible for COBRA coverage, the Company will reimburse Executive for premiums that he
pays to purchase a policy of family health insurance; provided that in no event shall any monthly
reimbursement payment exceed 100% of the COBRA rate that the Company would charge for that month
under its then existing health insurance plan for the type of coverage purchased by Executive.

5.5.2. Termination of Company’s Obligation. The Company obligation to provide
continued medical benefits under Section 5.5.1 shall terminate at the time Executive becomes
employed by or an independent contractor to a party unrelated to the Company or its successor which
makes health insurance available to Executive (with or without charge).

5.5.3. Payment of Taxes. The Company shall have no obligation to pay, or reimburse
Executive for the payment of, any income or other tax liability owed by Executive in connection
with any payments made by the Company pursuant to this Section 5.5.

5.6. Method of Payments; Full Compensation. All payments of Base Salary pursuant to
this Section 5 shall be paid in accordance with the Company’s normal payroll practices for its
salaried executive employees from time to time in effect. The Base Salary and benefits to be paid
pursuant to this Section 5 shall be considered full compensation in payment of all claims under
this Agreement, and Executive shall not be entitled to any other compensation or benefits.

5.7. Compliance with Section 409A of the Code. If a payment obligation under this
Agreement arises on account of the Executive’s separation from service while the Executive is a
“specified employee” (as defined under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), and determined in good faith by the Company), any payment of “deferred
compensation” (as defined in Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the
exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be
paid within six (6) months after such separation from service shall accrue with interest and be
paid together with the accrued interest within 15 days after the end of the six-month period
beginning on the date of such separation from service or, if earlier, within 15 days after the
appointment of the personal representative or executor of the Executive’s estate following his
death. For purposes of the preceding sentence, interest shall accrue at the prime rate of interest
published in the northeast edition of The Wall Street Journal on the date of the Executive’s
separation from service.

5.8. Additional Terms and Definitions.

5.8.1. Cause. For purposes of this Agreement, the term “Cause” shall mean (a)
Executive’s misappropriation of corporate funds or assets; (b) Executive’s commission of a felony;
(c) Executive’s commission of any crime or offense involving theft, dishonesty, or moral turpitude;
(d) Executive’s failure to devote substantially his full business time and attention to the Company
as provided in Section 3 hereof; (e) Executive’s willful violation of directions of the Board of
Directors of the Company which are consistent with Executive’s duties as Chief Executive Officer,
or any fraud, dishonesty or other willful misconduct by Executive in the performance of services on
behalf of the Company; (f) material misrepresentation made by Executive to the Company; (g)
verifiable evidence that Executive has engaged in sexual harassment of a nature that could give
rise to liability on the part of the Company; and/or (h) the commission by Executive of a material
breach of the terms of this Agreement.

5.8.2. Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean
the occurrence or existence of one or more of the following conditions, without the consent of
Executive: (a) a material diminution in Executive’s Base Salary, except any diminution made
pursuant to a broad-based, employee-wide salary reduction program adopted by the Board of Directors
shall not be deemed “material”; (b) a material diminution in Executive’s authority, duties, or
responsibilities with the Company; (c) a material change in the geographic location at which
Executive must perform his services hereunder by more than 50 miles; (d) any other action or
inaction that constitutes a material breach by the Company of this Agreement; provided, however,
that there shall not be Good Reason unless the Executive has first given written notice to the
Company specifying in reasonable detail the circumstances which Executive believes gives rise to
Good Reason within 90 days of the initial existence of the Good Reason and the Company shall have
failed to remedy such Good Reason within 30 days of its receipt of such notice (the “Remediation
Period”). The Company shall notify Executive within 10 days of receipt of the notice whether it
agrees or disagrees with Executive’s determination that the event specified in the notice
constitutes Good Reason and whether it will exercise, or waive, its right to remedy the condition
within the Remediation Period. If the Company waives its right to remedy the condition, or if the
Company attempts to remedy the condition but Executive notifies the Company in writing within seven
days of the close of the Remediation Period (including any extension of the Remediation Period that
the parties may agree to in writing) that the remediation is not satisfactory, then Executive may
terminate his employment for Good Reason on the date specified in the notice (or such later date as
the Executive and the Company may mutually agree in writing) so long as Good Reason, as defined
herein, continues to exist; provided, however, that Executive’s termination of employment shall in
no event take place later than two years following the initial existence of the circumstances
giving rise to Good Reason.

5.8.3. Termination. Termination of employment or words of similar import, as used in
this Agreement, means, for purposes of any payments under this Agreement that are payments of
deferred compensation subject to 409A of the Code, the Executive’s “separation from service” as
defined in Section 409A of the Code.

6. Withholding of Taxes. All compensation and benefits payable to Executive pursuant
to this Agreement shall be subject to all applicable tax withholding requirements.

7. Certain Restrictions.

7.1. Confidentiality. Executive acknowledges that he will acquire confidential
information relating to the Company, its subsidiaries and affiliates, including but not limited to
business plans, sales and marketing plans, financial information, acquisition prospects, and
“customer” and “supplier” lists (as such terms may relate to the business or the systems and other
trade secrets or know-how of the Company, its subsidiaries and affiliates) as they may exist from
time to time (collectively, “Confidential Information”), which are valuable, special, and unique
assets of the Company’s business, access to or knowledge of which is essential to the performance
of Executive’s duties hereunder. Accordingly, Executive will not disclose at any time (during his
employment under this Agreement or thereafter) any such Confidential Information other than in
connection with and reasonably required for the performance of his duties under this Agreement,
unless required to do so pursuant to law, subpoena, court order, or other legal process. These
restrictions will not apply to, and Confidential Information will not be deemed to include,
information that is then in the public domain (other than as a result of action by the Executive).

7.2. Competitive Activity. Due to the unique position of Executive in his role with
the Company, Executive agrees that if his employment with the Company ceases for any reason,
Executive will not, during the Term and for a period of one year after the effective date of his
termination of employment, without prior written consent of the Company:

7.2.1. Directly or indirectly, engage or be interested in (as owner, partner, shareholder,
employee, director, officer, agent, consultant or otherwise), with or without compensation, any
business entity or operation that engages in the business of selling computer-aided design software
or providing professional, consulting, technical or training services related to computer-aided
design software within fifty (50) miles of any location where the Company or any of its affiliates
sells such software or provides such services, except that Executive may own up to a five percent
(5%) interest in the publicly-traded securities of a publicly traded corporation. As used herein,
“affiliate” means any corporation, firm or business entity controlled, directly or indirectly, by
the Company or by the same persons, corporations, firms or business entities which control the
Company;

7.2.2. Employ or retain or participate in or arrange the employment or retention of any person
who was employed or retained by the Company, any successor to the Company’s business, or any of
their affiliates or subsidiaries during the period of Executive’s employment; or

7.2.3. Directly or indirectly solicit any customers or clients of the Company, its affiliates,
or subsidiaries.

7.3. Remedy for Breach and Modification. Executive acknowledges that the provisions
of this Section 7 are reasonable and necessary for the protection of the Company and that the
Company will be irrevocably damaged if these provisions are not specifically enforced.
Accordingly, Executive agrees that, in addition to any other relief or remedies available to the
Company, including reasonable attorneys’ fees and costs, the Company is entitled to seek and obtain
an appropriate injunction or other equitable remedy for the purposes of restraining the Executive
from any actual or threatened breach of or otherwise enforcing these provisions and no bond or
security will be required in connection with such equitable remedy. If any provision of this
Section 7 is deemed invalid or unenforceable in any jurisdiction, such provision will be deemed
modified and limited in such jurisdiction to the extent necessary to make it valid and enforceable
in such jurisdiction.

8. Arbitration of Certain Disputes. Any dispute or controversy arising under or in
connection with this Agreement, other than with respect to an alleged breach of any of any of the
provisions of Section 7, shall be resolved by binding arbitration held in Baltimore City or
Baltimore County, Maryland before a single arbitrator. Such arbitration will be conducted in
accordance with the Commercial Arbitration Rules of the American Arbitration Association then in
effect and otherwise in accordance with principles that would be applied by a court of law or
equity. The arbitrator shall make written findings of fact and law to support his decision, which
will be final and binding upon all parties. Judgment on any award may be entered and enforced in
any court having jurisdiction.

9. Miscellaneous.

9.1. Entire Agreement; Amendment. This Agreement supersedes all prior agreements,
written and oral, between the parties with respect to its subject matter, is intended as a complete
and exclusive statement of the terms of the agreement between the parties with respect thereto, and
may be amended only by a writing signed by both parties hereto.

9.2. Nonwaiver. The failure of either party to insist upon strict adherence to any
term of this Agreement on any occasion will not operate as a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
Any waiver must be in a writing signed by the party to be charged therewith.

9.3. Assignment. The Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their successors and assigns and their representatives. This Agreement
may not be assigned by either party without the consent of the other party, except that the Company
may assign all of its rights and delegate performance of all of its obligations hereunder in
connection with a Change in Control.

9.4. Counterparts. This Agreement may be executed in two or more counterparts, each
of which will be an original, but all of which together will constitute the same instrument.

9.5. Headings. The headings in this Agreement are for convenience of reference only
and should not be given any effect in the interpretation of this Agreement.

9.6. Governing Law. This Agreement is governed by the laws of the State of Maryland,
without regard to any provision that would result in the application of the laws of any other state
or jurisdiction.

9.7. Interpretation. This Agreement is intended to comply with, or otherwise be
exempt from, Section 409A of the Code and any regulations and Treasury guidance promulgated
thereunder. If the Company determines in good faith that any provision of this Agreement would
cause the Executive to incur an additional tax, penalty, or interest under Section 409A of the
Code, then the Company and the Executive shall use reasonable efforts to reform such provision, if
possible, in a mutually agreeable fashion to maintain to the maximum extent practicable the
original intent of the applicable provision without violating the provisions of Section 409A of the
Code or causing the imposition of such additional tax, penalty, or interest under Section 409A of
the Code.

9.8. Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of any other provision of this Agreement.

9.9. Company Policies, Plans and Programs. Except as expressly provided otherwise in
this Agreement, whenever any rights under this Agreement depend on the terms of a policy, plan, or
program established or maintained by the Company, any determination of such rights will be made on
the basis of the policy, plan, or program in effect at the time as of which such determination is
made. No reference in this Agreement to any policy, plan, or program established or maintained by
the Company precludes the Company from prospectively or retroactively changing or amending or
terminating that policy, plan, or program or adopting a new policy, plan, or program in lieu of the
then existing policy, plan, or program.

9.10. Board Action. Any action that may be taken hereunder by the Board of Directors
of the Company with respect to the compensation and benefits of Executive may be taken by an
authorized committee of the Board.

9.11. Survival of Terms. The provisions of Sections 4.3.3, 5.2 through 5.6,
inclusive, and 6 through 9, inclusive, of this Agreement shall survive the termination of
Executive’s employment hereunder.

IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the date first
above written.

AVATECH SOLUTIONS, INC.

By: /s/ Lawrence Rychlak (SEAL)

Name: Lawrence Rychlak

Title: President and Chief Financial Officer

EXECUTIVE

	 	 	 
	/s/ George Davis

	 	(SEAL)
	 

	 	

	George Davis

	 	

EXHIBIT A

Options Vesting and Accelerated Vesting Schedule – 2006 Option

December 1, 2006 Option

	 	 	 	 	 	 	 	 	 
	Number of Shares

	 	Subject to Option:	 	100,000
	 	 
	Vesting	 	25,000 shares vest immediately (December 1, 2006)
25,000 shares vest on December 1, 2007
50,000 shares vest at the rate of 1/36 per month beginning
January 1, 2008 (the “Performance Options”)
	 	 	 	 
	Accelerated

	 	Performance
	 	Options:	 	37,500 shares (or a pro rata portion thereof) shall vest
immediately based on the incentive compensation targets
for senior executives of the Company adopted by the
Company’s Compensation Committee on September 29, 2006 (as
the same may be subsequently adjusted or revised by such
Committee), except that (i) the percentages therein stated
shall be percentages of 37,500 option shares, instead of
percentages of targeted incentive compensation, and (ii)
percentages related to service revenue attainments shall
be ignored for purposed of this acceleration in vesting.

	 	 	 	 	12,500 shares shall immediately vest at such time as the
Company achieves $5,000,000 in additional “non-organic”
revenue growth (representing revenue growth attributable
to revenue sources other than the resale of Autodesk
software).
	 	 	 	 

EXHIBIT B

	 	 	Terms and Conditions of 2007 Option

	 	 	September 12, 2007 Option

A ten-year option to purchase up to 200,000 shares of common stock of the Company was granted to
Executive on September 12, 2007. The exercise price of such option is $     , which was the closing
sales price of a share of common stock on the day prior to the grant date. The option shall vest
ten years from the date of issuance, subject to acceleration of vesting based upon attaining the
performance targets set forth below. Upon termination of Executive’s employment with the Company,
such option shall be terminated to the extent not then vested.

Up to 100,000 shares of common stock shall vest as follows:

	 	 	 
	Net Income (as defined below)

	 	Total number of shares vested
	 

	 	 
	Less than $2,000,000

$2,000,000 to $2,499,999

$2,500,000 to $2,999,999

$3,000,000 to $3,499,999

$3,500,000 to $3,750,000

	 	0

20,000

25,000

50,000

100,000

An additional 10,000 shares of common stock shall vest for each additional $250,000 in Net Income,
up to a maximum of 50,000 additional shares.

25,000 shares shall vest if service revenue for the fiscal year ended June 30, 2008 exceeds
$15,480,000 and an additional 25,000 shares shall vest at the discretion of the compensation
committee based upon the accomplishment of strategic goals as determined from time to time by the
compensation committee.

Notwithstanding the foregoing, no shares shall vest if Net Income does not equal or exceed
$2,000,000.

For purposes hereof, “Net Income” shall mean the net income of the Company for the fiscal year
ended June 30, 2008, calculated in accordance with generally accepted accounting principles
consistently applied. Calculation of Net Income and service revenue shall be made within 105 days
of the end of the fiscal year, and shall be based upon audited financial statements prepared by the
Company. Any vesting based upon Net Income or service revenue shall occur on the date of the audit
report with respect to such financial statements.

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