Document:

Ex-10.5

 

Exhibit 10.5

BLACK BOX CORPORATION

NON-QUALIFIED STOCK OPTION AGREEMENT

Employee-Optionee:                                                                                 

Number of shares of

Common Stock (as defined below)

subject to this Option Agreement:                                                         

Vesting Dates (as defined below): one-third (1/3) of the number of Options
Shares (as defined below) shall vest on the first one-year anniversary of the
Grant Date (as defined below) and on each of the two (2) subsequent one-year
anniversaries of the Grant Date.

Pursuant to the Black Box Corporation 1992 Stock Option Plan (the “Plan”), the
option committee of the Board of Directors of Black Box Corporation (the
“Company”) has granted to you a Non-Qualified Option (as defined in the Plan)
to purchase the number of shares of the Company’s common stock, $.001 par
value, (“Common Stock”) set forth above (the “Option”). Such number of shares
(as such may be adjusted as described in Section 9 below or pursuant to the
terms of the Plan) is herein referred to as the “Option Shares.” This Option
is not an “incentive stock option” as defined in Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”), and may not be treated as such
for tax purposes by you or the Company. Additional terms and conditions of
this Option are set forth below.

     1. Date of Grant. This Option was granted to you on [month, day, year]
(the “Grant Date”).

     2. Termination of Option. Your right to exercise this Option (and to
purchase the Option Shares) shall expire and terminate in all events on the
earlier of (i) the date which is ten (10) years from the Grant Date (the
“Expiration Date”) or (ii) the date determined in accordance with Section 8
below in the event you cease to be employed on a full-time basis by the Company
or a subsidiary corporation or parent corporation of the Company as such terms
are defined in the Plan (such entities hereinafter referred to as the “BB
Group”).

     3. Option Price. The purchase price to be paid upon the exercise of this
Option or any part of it will be $[exercise price] per Option Share (the
“Option Price”).

     4. Vesting Provisions — Entitlement to Exercise the Option and Purchase
Option Shares. You may not exercise this Option in whole or in part prior to
the first one-year anniversary of the Grant Date. On such date and on each of
the two (2) succeeding one-year anniversaries of that date (each date being
referred to as a “Vesting Date”), you shall become entitled to exercise this
Option with respect to 33 1/3% of the Option Shares.

Strictly Private and Confidential

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     5. Additional Provisions Relating to Exercise.

	(a)	 	Once you become entitled to exercise this Option or any part of it (and
purchase Option Shares) as provided in Section 4 hereof, that right will
continue until the date on which this Option expires or is terminated
pursuant to Section 2 hereof.
	 
	(d)	 	The Board of Directors of the Company (or the
option committee), in its sole discretion, may at any time
accelerate the time at which the Option may be exercised by you
with respect to all or any part of the Option Shares, or it may
terminate the Plan and the Option at any time.

     6. Exercise of Option. To exercise the Option, you must deliver a
completed copy of the attached Option Exercise Form (Exhibit A hereto) to the
address indicated on the Form, specifying the number of Option Shares being
purchased as a result of such exercise, together with payment of the full
Option Price for the Option Shares being purchased as a result of such
exercise. Payment of the Option Price must be made in cash, by certified check
or by delivery of that number of shares of previously-owned Common Stock having
a fair market value equal to the exercise price applicable to that portion of
the Option being exercised by the delivery of such shares. You must also pay
any withholding taxes resulting from exercise of the Option before a stock
certificate will be issued to you. You must deliver the properly-completed
Option Exercise Form along with the appropriate payment due in order to
exercise this Option.

     7. Transferability of Option. This Option may not be transferred by you
(other than by will or the applicable laws of descent and distribution), and
may be exercised during your lifetime only by you.

     8. Termination of Employment.

	(a)	 	In the event that you cease to be employed by any member of the BB Group
on a full-time basis by reason of “disability” (as defined in Section
22(e)(3) of the Code), this Option may only be exercised within one (1)
year after the date you cease to be so employed, and only to the same
extent that you were entitled to exercise this Option on the date you
ceased to be so employed by reason of such disability, and did not
theretofore do so.
	 
	(b)	 	In the event you retire (at such age or upon such
conditions as shall be specified by the Board of Directors) or
are dismissed from your employment with any member of the BB
Group other than for cause (as defined in Article XI of the
Plan), this Option may only be exercised within three (3)
months after the date you cease to be so employed, and only to
the same extent that you were entitled to exercise this Option
on the date you ceased to be so employed, and did not
theretofore do so.
	 
	(c)	 	In the event that you die while employed on a
full-time basis with any member of the BB Group, or during the
one (1) year period following your disability in (a) above, or
during the three (3) month period following your retirement or
termination other than for cause in (b) above, this Option may
only be exercised within one (1) year from your date of death
by your legal

Strictly Private and Confidential

2

 

	 	 	representative or such other person who acquired
the Option by bequest or inheritance or reason of your death,
and only to the same extent you were entitled to exercise this
Option on your date of death, and did not theretofore do so.
	 
	(d)	 	In the event you voluntarily terminate your
employment with the BB Group, or are discharged for cause (as
defined in Article XI of the Plan), this Option shall terminate
immediately upon the occurrence of such event.
	 
	(e)	 	Notwithstanding any provision contained in this
Section 8 to the contrary, in no event may this Option be
exercised to any extent by you after the Expiration Date.

     9. Adjustments. If the total number of outstanding shares of Common Stock
of the Company shall be increased or decreased or changed into or exchanged for
a different number or kind of shares of stock or other securities of the
Company or of another corporation through reorganization, merger or
consolidation, recapitalization, stock split, combination or exchange of
shares, or declaration of any dividends payable in stock, the unexercised
portion of the Option Shares covered by this Option may be appropriately
adjusted by the Board of Directors or the option committee as to the number or
kind of shares (to the nearest possible full share) and price
per share thereof in order to preserve your proportionate interest in the
Company and in order that the aggregate option price shall remain unchanged.

     10. Continuation of Employment. Neither the Plan nor this Option shall
confer upon you any right to continue in the employ of the BB Group, or limit
in any respect the right of the BB Group to terminate your employment at any
time.

     11. Plan Documents. This Option Agreement is qualified in its entirety by
reference to the Plan itself, a copy of which is attached hereto as Exhibit B,
or which may be obtained from the office of the Chief Executive Officer at any
time.

Please acknowledge your acceptance and agreement to the terms of this Option
Agreement by signing this Option Agreement in the space provided below and
returning it promptly to the Company.

	 	 	 	 	 
	 	 	Black Box Corporation
	 
	 	 	 	 
	

	 	By:
	 	

	

	 	 	 	Fred C. Young
	

	 	 	 	Chief Executive Officer

I accept and agree to the terms of the Option as set forth herein.

	 	 	 	 	 	 	 
	
	 	 	

	Employee-Optionee	 	 	

Strictly Private and Confidential

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Exhibit A

BLACK BOX CORPORATION

NON-QUALIFIED STOCK OPTION EXERCISE FORM

Steve Macurak             
                        
               Fax: 724-873-6502

Manager, Human Development

Black Box Corporation

1000 Park Drive

Lawrence, PA 15055

Dear Steve:

I hereby exercise the Non-Qualified Option granted to me on                                       ,
20                   , under the Black Box Corporation 1992 Stock Option Plan, having an
exercise price of $           
        per share, and elect to purchase               
    shares of the
common stock, par value $.001 per share, (the “Common Stock”) of Black Box
Corporation (the “Company”).

I elect to:

	o 	 	Sell all shares upon exercise (cashless – proceeds net of exercise price and taxes).
	 
	o 	 	Sell a portion of the shares (to cover exercise price and taxes).
	 
	o 	 	Exercise options, enclosed is my check for $                     to cover exercise price and taxes.
	 
	 	 	The share certificates should be issued to:

	 	 	 	 
	 	                                                         

	 	                                                         
	 	Full Name (print)

	 	Street Address
	 	 
	 	 
	 	                                                         

	 	                                                         
	 	Social Security Number

	 	City, State, Zip
	 	 
	 	 
	 	                                                         

	 	                                                         
	 	Office

	 	Manager

I acknowledge that I have received and reviewed a copy of the Company’s
Prospectus concerning Common Stock issuable under the Company’s 1992 Stock
Option Plan. I have also received and reviewed a copy of the Company’s Annual
Report to Stockholders and the Company’s Proxy Statement for the most recent
fiscal year.

Sincerely,

     
                
                
               
 

Employee — OptioneeEx-10.6

 

Exhibit 10.6

AGREEMENT

     This Agreement made as of this 11th day of November, 2004 by and between
Black Box Corporation, a Delaware corporation (the “Corporation”), and Kathleen
Bullions an individual residing in the Commonwealth of Pennsylvania and an
executive of the Corporation (the “Executive”).

WITNESSETH:

     WHEREAS, the Board of Directors of the Corporation has determined that it
is in the best interests of the Corporation to enter into this Agreement with
the Executive; and

     WHEREAS, the Executive desires to obtain certain benefits in the event the
Executive’s employment is terminated;

     NOW, THEREFORE, the parties hereto, each intending to be legally bound
hereby, agree as follows:

	1.	 	Definition of Terms The following terms when used in this Agreement
shall have the meaning hereafter set forth:

	(a)	 	“Annual Salary Adjustment Percentage” shall mean the
mean average percentage increase in base salary for all
executive officers of the Corporation during the two full
calendar years immediately preceding the time to which such
percentage is being applied; provided, however, that if after a
Change-in-Control, as hereinafter defined, there should be a
significant change in the number of executive officers of the
Corporation or in the manner in which they are compensated, then
the foregoing definition shall be changed by substituting for
the phrase “executive officers of the Corporation” the phrase
“persons then performing the functions formerly performed by the
executive officers of the Corporation.”
	 
	(b)	 	“Cause for Termination” shall mean:

	(i)	 	the deliberate and intentional failure by
the Executive to devote substantially the Executive’s
entire business time and best efforts to the performance
of the Executive’s duties (other than any such failure
resulting from the Executive’s incapacity due to physical
or mental illness or disability);

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or

	(ii)	 	engaging by the Executive in gross
misconduct materially and demonstrably injurious to the
Corporation;

or

	(iii)	 	the conviction of the Executive of, or
the entry of a plea of guilty or Nolo Contendre by the
Executive to, a crime involving an act of fraud or
embezzlement against the Corporation or the conviction of
the Executive of, or the entry of a plea of Nolo Contendre
by the Executive to, any felony involving moral turpitude;

or

	(iv)	 	the Executive’s material breach of
Section 4 or Section 8 hereof which continues for ten (10)
days after receiving written notice thereof from the
Corporation or the Executive’s willful failure to comply
with instructions of the Board of Directors of the
Corporation provided that such instructions would not give
rise to Good Reason for Termination.

For purposes of this definition, no act, or failure to act, on
the Executive’s part shall be considered “deliberate and
intentional” or to constitute gross misconduct unless done, or
omitted to be done, by the Executive not in good faith and
without reasonable belief that the Executive’s action or
omission was in the best interests of the Corporation.

	(c)	 	“Change-in-Control” shall mean a change in control of
the Corporation of such a nature that it would be required to be
reported by the Corporation in response to Item 6(e) of Schedule
14A of Regulation 14A promulgated under the Securities Exchange
Act of 1934, as in effect on the date hereof (“Exchange Act”);
provided, however, that:

	(i)	 	without respect to the foregoing, such a
change in control shall be deemed to have occurred if any
“person” (as such term is used in sections 13(d) and
14(d)(2) of the Exchange Act) or any “group” (as such term
is defined in Rule 13d-5(b) promulgated under the Exchange
Act), is or becomes the beneficial owner, directly or
indirectly, of securities of the Corporation representing
twenty percent (20%) or more of the combined voting power
of the Corporation’s then outstanding securities coupled
with or followed

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	 	 	by the existence of a majority of the board of
directors of the Corporation consisting of individuals
other than individuals who either were directors of the
Corporation at least one year prior to or were
nominated by those individuals who were directors of
the Corporation at least one year prior to such person
or group becoming a beneficial owner, directly or
indirectly, of securities of the Corporation
representing 20% or more of the combined voting power
of the Corporation’s then outstanding securities;

and

	(ii)	 	without respect to the foregoing, if the
Corporation shall sell all or substantially all of its
assets or shall merge, consolidate or reorganize with
another company, then such a change in control shall be
deemed to have occurred if (x) upon conclusion of the
transaction less than fifty-one percent (51%) of the
outstanding securities entitled to vote generally in the
election of directors of the acquiring company or
resulting company are owned by persons who were the
stockholders of the Corporation generally prior to the
transaction and following the transaction a majority of
the board of directors of the acquiring company or
resulting company consists of individuals other than
individuals who either were directors of the Corporation
at least one year prior to such sale, merger,
consolidation or reorganization or (y) following the
transaction a person or group (as described in subclause
(i) above) would be a beneficial owner, directly or
indirectly, of securities of the acquiring company or
resulting company representing 20% or more of the combined
voting power of the acquiring company’s or resulting
company’s then outstanding securities as described in
subclause (i) above and a majority of the board of
directors of the acquiring company or resulting company
consists of individuals other than individuals who either
were directors of the Corporation at least one year prior
to such sale, merger, consolidation or reorganization.

	(d)	 	“Date of Termination” shall mean:

	(i)	 	if the Executive’s employment is
terminated for Disability, the date that a Notice of
Termination is given to the Executive;
	 
	(ii)	 	if the Executive’s employment terminates
due to the Executive’s death or Retirement, the date of
death or Retirement, respectively;

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	(iii)	 	if the Executive decides to terminate
employment upon Good Reason for Termination, the date
specified by the Executive in a Notice of Termination; or
	 
	(iv)	 	if the Executive’s employment is
terminated for any other reason, the date on which a
termination becomes effective pursuant to a Notice of
Termination or, if no Notice of Termination is provided,
the date that the Executive’s employment was terminated.

	(e)	 	“Disability” shall mean such incapacity due to
physical or mental illness or injury as causes the Executive to
be unable to perform the Executive’s duties with the Corporation
during 90 consecutive days or 120 days during any six month
period.
	 
	(f)	 	“Good Reason for Termination” shall mean the
occurrence of:

	(i)	 	without the Executive’s express written
consent, following a Change-in-Control the assignment to
the Executive of any duties materially and substantially
inconsistent with the Executive’s positions, duties,
responsibilities and status immediately prior to a
Change-in-Control, or a material change in the Executive’s
reporting responsibilities, titles or offices as in effect
immediately prior to a Change-in-Control, or any removal
of the Executive from or any failure to re-elect the
Executive to any of such positions except in connection
with the termination of the Executive’s employment due to
Cause for Termination, Disability or Retirement (as
hereinafter defined) or as a result of the Executive’s
death;
	 
	(ii)	 	a reduction by the Corporation after a
Change-in-Control in the Executive’s base salary as in
effect immediately prior to any Change-in-Control;
	 
	(iii)	 	a failure by the Corporation after a
Change-in-Control to continue to provide incentive
compensation comparable to that provided to the Executive
immediately prior to any Change-in-Control;
	 
	(iv)	 	the failure by the Corporation after a
Change-in-Control to continue in effect any benefit or
compensation plan, stock option plan, pension plan, life
insurance plan, health and accident plan or disability
plan in which the Executive is participating immediately
prior thereto (provided, however, that there shall not be
deemed to

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	 	 	be any such failure if the Corporation substitutes for
the discontinued plan, a plan providing the Executive
with substantially similar benefits) or the taking of
any action by the Corporation which would adversely
affect the Executive’s participation in or materially
reduce the Executive’s benefits under any of such plans
or deprive the Executive of any material fringe benefit
enjoyed by the Executive immediately prior to a
Change-in-Control;
	 
	(v)	 	the failure of the Corporation to obtain
the assumption of this Agreement by any successor as
contemplated in Section 10(c) hereof;
	 
	(vi)	 	any purported termination of the
employment of the Executive by the Corporation following a
Change-in-Control which is not (A) due to the Executive’s
Disability, Retirement (as hereinafter defined) or in
accordance with Section 2 hereof, or (B) effected pursuant
to a Notice of Termination satisfying the requirements of
subsection 1(h) below; or
	 
	(vii)	 	the relocation of the Executive
following a Change-in-Control to a facility or a location
more than 50 miles from the Employee’s then present
location, without the Executive’s prior written consent.

	(g)	 	“LTIP Plan” shall mean an incentive compensation plan
of the Corporation which would pay bonuses to the Executive
based upon the achievement of specified goals during or at the
end of an award period of more than one year (such as a three
year incentive compensation plan).
	 
	(h)	 	“Notice of Termination” shall mean a written
statement which sets forth the specific reason for termination
and, if such is claimed to be Cause for Termination or Good
Reason for Termination, in reasonable detail the facts and
circumstances thereof.
	 
	(i)	 	“Options” shall mean any stock options issued
pursuant to any present or future stock option plan of the
Corporation.
	 
	(j)	 	“Retirement” shall mean a termination of the
Executive’s employment after age 65 or in accordance with any
mandatory retirement arrangement with respect to an earlier age
agreed to by the Executive.

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	(k)	 	“Stock Awards” shall mean any stock-based awards,
other than Options, including any stock appreciation rights,
restricted stock awards, or performance stock awards, issued
pursuant to any present or future stock plan of the Corporation.

	2.	 	Termination by the Corporation Due to Cause for Termination. Should the
Board of Directors of the Corporation determine that Cause for Termination
exists, the Board of Directors of the Corporation by resolution duly
adopted may at that time or during a period of two months thereafter
terminate the Executive’s employment due to Cause for Termination by
delivering a Notice of Termination. If the Board of Directors of the
Corporation fails to duly adopt within such two month period a resolution
terminating the Executive’s employment, then the Corporation shall be
deemed to have waived its right to terminate the Executive due to those
circumstances which constituted the Cause for Termination previously found
to exist by the Board.
	 
	3.	 	Payments Following Termination of Employment After Change-in-Control.

	(a)	 	If during the term of this Agreement the Executive’s
employment with the Corporation shall be terminated:

	(i)	 	due to the Executive’s death or
Disability,
	 
	(ii)	 	by the Executive at any time prior to a
Change-in-Control,
	 
	(iii)	 	by the Executive following a
Change-in-Control other than the Executive’s having
terminated for Good Reason for Termination,
	 
	(iv)	 	by the Corporation at any time prior to a Change-in-Control, or
	 
	(v)	 	by the Corporation following a Change-in-Control in accordance with Section 2 hereof or in accordance with
Retirement,

then the Corporation shall have no obligations hereunder to the
Executive from and after the Date of Termination and the only
obligations of the Corporation to the Executive shall be in
accordance with any other employment agreement applicable to
the Executive and the then various policies, practices and
benefit plans of the Corporation.

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	(b)	 	If during the term of this Agreement a
Change-in-Control shall have occurred and the Executive’s
employment shall have been terminated on or before the second
anniversary of the date of the Change-in-Control other than
under the circumstances above described in subsection 3(a) (for
example, a termination by the Executive for Good Reason for
Termination within the foregoing period following a
Change-in-Control shall entitle the Executive to the payments
set forth in this subsection), then the Corporation shall pay
the Executive on or before the sixtieth (60th) day following the
Date of Termination the following sums:

	(i)	 	in cash any unpaid portion of the
Executive’s full base salary for the period from the last
period for which the Executive was paid to the Date of
Termination; and
	 
	(ii)	 	an amount in cash as liquidated damages
for lost future remuneration equal to the sum of

(A) the product obtained by multiplying:

(1) the lesser of

	 	(i)	 	two (2.0), or
	 
	 	(ii)	 	a number equal to the number of
calendar months remaining from the Date
of Termination to the date on which the
Executive is 65 years of age (or, if
earlier, the age agreed to by the
Executive pursuant to any prior
arrangement) divided by twelve,

times

(2) the sum of

(i) the greater of

(x) the Executive’s annual base
salary for the year in effect on the
Date of Termination,

(y) in the case of termination by the
Executive for Good Reason for
Termination, the Executive’s annual
base salary in effect on the

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date immediately preceding the date
of the earliest event which gave rise
to the termination by the Executive
for Good Reason for Termination,

or

(z) the Executive’s annual base
salary for the year in effect on the
date of the Change-in-Control,

plus

(ii) the greater of

(x) one third (1/3) of the aggregate
cash bonuses or awards (including any
payments under an LTIP Plan) received
by the Executive as incentive
compensation or bonus during the
three calendar years immediately
preceding the Date of Termination

(y) in the case of termination by the
Executive for Good Reason for
Termination, one third (1/3) of the
aggregate cash bonuses or awards
(including any payments under an LTIP
Plan) received by the Executive as
incentive compensation or bonus
during the three calendar years
immediately preceding the date of the
earliest event which gave rise to the
termination by the Executive for Good
Reason for Termination,

or

(z) one third (1/3) of the aggregate
cash bonuses or awards (including any
payments under an LTIP Plan) received
by the Executive as incentive
compensation or bonus for the three
calendar years immediately preceding
the date of the Change-in-Control,

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plus

(B) if the Executive immediately preceding the date of
the Change-in-Control is a participant in an LTIP Plan
and the award period has not been completed prior to
the date of the Change-in-Control, an amount equal to

(1) the total cash award or bonus which would have been
received by the Executive under such LTIP
Plan assuming that, in addition to any
goals met on or before the date of the
Change-in-Control, all goals that were to
be measured after the date of the
Change-in-Control were achieved and the
Executive remained in the employ of the
Corporation at all relevant times under the
LTIP Plan,

less

(2) any portion
of the cash award or bonus for that award
period previously paid to the Executive
pursuant to such LTIP Plan.

	4.	 	Nondisclosure of Information.

	(a)	 	Executive acknowledges that the Corporation has
invested and will continue to invest considerable resources in
the research, development and advancement of the Corporation’s
business, which investment has or may result in the generation
of proprietary, confidential and/or trade secret data,
information, techniques and materials, tangible and intangible,
which properly belong to the Corporation or in which the
Corporation has an interest. Executive acknowledges and agrees
that it would be unlawful for Executive to appropriate, to
attempt to appropriate, or to disclose to anyone or use for a
third party’s benefit such data, information, techniques or
materials, subject to the following:

	(i)	 	Executive acknowledges that the following
constitute protectable confidential, trade secret or
otherwise proprietary information of the Corporation or of
a third party: all computer software and firmware and
computer aided mechanisms related to the foregoing, files,
programs, data or information received by the Corporation
from a customer or prospective customer of the Corporation
if such is confidential or proprietary to the customer,
data base management systems or other instrumentations,
any proposals for development,

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	 	 	any reports on findings of tests, investigative
studies, consultations or the like, pricing policies,
budgets, customer lists, strategic plans (whether or
not communicated in writing), marketing and sales
information, all written documents not generally in the
public domain, any and all copies or imitations of the
foregoing, and all other confidential, trade secret or
proprietary information, whether or not copyrighted or
patented and whether created solely by Executive,
jointly with others, or solely by others.
	 
	(ii)	 	For purposes of this Section 4, all
confidential, proprietary, or trade secret information
enumerated or mentioned in Section 4(a)(i) is hereinafter
referred to as “Information”. Any restrictions on
disclosure and use of the Information will apply to all
copies of the Information, whether in whole or in part.
	 
	(iii)	 	During the term of this Agreement and at
all times after termination of this Agreement, unless
authorized in writing by the Corporation, the Executive
will not:

	(1)	 	use for the Executive’s
benefit or advantage the Information, or
	 
	(2)	 	use the Information for
the benefit or advantage of any third party, or
	 
	(3)	 	disclose or cause to be
disclosed the Information or authorize or permit
such disclosure of the Information to any
unauthorized third party, or
	 
	(4)	 	use the Information in
any manner which is intended to injure or cause
loss, whether directly or indirectly, to the
Corporation.

	(iv)	 	The Executive will not be liable for the
disclosure of Information which:

	(1)	 	is in the public domain
generally and as such becomes known to Executive
through no wrongful act or breach of this
Agreement; or

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	(2)	 	is received rightfully by
Executive from a third party having a lawful right
to possess and to release the Information,
provided the Executive agrees to promptly notify
the Corporation if the Executive suspects that the
information possessed by the third party is within
the meaning of Information under this Agreement.

	(v)	 	In any judicial proceeding, it will be
presumed that the Information constitutes protectable
trade secrets, and the Executive will bear the burden of
proving that any Information is publicly or rightfully
known by the Executive.
	 
	(vi)	 	The Executive will surrender to the
Corporation at any time upon request, and upon termination
of the Executive’s employment with the Corporation for any
reason, all written or otherwise tangible documentation
representing or embodying the Information, in whatever
form, whether or not copyrighted, patented, or protected
as a mask work, and any copies or imitations of the
Information, whether or not made by the Executive.
	 
	(vii)	 	The Executive agrees to be available
upon request for consultation after termination of
employment to provide information and details with respect
to any work or activity performed or materials created by
the Executive alone or with others during the Executive’s
employment by the Corporation. The Executive will be
reimbursed for these services.

	(b)	 	Any and all creations, developments, discoveries,
inventions, works of authorship, enhancements, modifications and
improvements, including without limitation computer programs,
data bases, data files and the like, (hereinafter collectively
referred to as “Development” or “Developments”), whether or not
the Developments are copyrightable, patentable, protectable as
mask works or otherwise protectable (such as by contract or
implied duty), and whether published or unpublished, conceived,
invented, developed, created or produced by the Executive alone
or with others during the term of the Executive’s employment,
whether or not during working hours and whether on the
Corporation’s premises or elsewhere, will be the sole and
exclusive property of the Corporation if the Development is:

	(i)	 	connected with the Corporation in any
way, or

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	(ii)	 	within the scope of the Executive’s
duties assigned or implied in accordance with the
Executive’s position, or
	 
	(iii)	 	a product, service, or other item which
would be in competition with the products or services
offered by the Corporation or which is related to the
Corporation’s products or services, whether presently
existing, under development, or under active
consideration, or
	 
	(iv)	 	in whole or in part, the result of the
Executive’s use of the Corporation’s resources, including
without limitation personnel, computers, data bases,
communications facilities, word processing systems,
programs, office facilities or otherwise.

During the term of the Executive’s employment with the
Corporation and, if the Corporation should then so request,
after termination of such employment, the Executive agrees to
assign and does hereby assign to the Corporation all rights in
the Developments created by the Executive alone or with others
during the term of the Executive’s employment, and all rights
in any trademarks, copyrights, patents, trade secrets and
analogous intellectual property rights and any applications for
registration for same, of the United States and such foreign
countries as the Corporation may designate which are related to
the Developments, including without limitation all accompanying
goodwill and the right to sue for infringement or
misappropriation and to receive all proceeds related to any
judgment or settlement of same. The Executive agrees to
execute and deliver to the Corporation any instruments the
Corporation deems necessary to vest in the Corporation sole
title to and all exclusive rights in the Developments created
by the Executive alone or with others during the term of the
Executive’s employment, and in all related trademarks,
copyrights, mask work protection rights, and/or patent rights
so created during the term of employment. The Executive agrees
to execute and deliver to the Corporation all proper papers for
use in applying for, obtaining, maintaining, amending and
enforcing all such trademarks, copyrights, patents or such
other legal protections as the Corporation may desire. The
Executive further agrees to assist fully the Corporation or its
nominees in the preparation and prosecution of any trademark,
copyright, mask work protection, patent, or trade secret
arbitration or litigation. The Executive shall be reimbursed
on a reasonable hourly basis consistent with the compensation
provided for herein for the Executive’s services rendered
following termination of employment.

	(c)	 	The Executive’s obligations and covenants in this
Section 4 will be binding upon the Executive’s heirs, legal
representatives, successors and assigns.

-12-

 

	(d)	 	The Corporation and the Executive agree that the
rights conveyed by this Agreement are of a unique and special
nature. The Executive and the Corporation agree that any
violation of this Section 4 will result in immediate and
irreparable harm to the Corporation and that in the event of any
actual or threatened breach or violation of any of the
provisions of this Section 4, the Corporation will be entitled
as a matter of right to an injunction or a decree of specific
performance without bond from any equity court of competent
jurisdiction. The Executive waives the right to assert the
defense that such breach or violation can be compensated
adequately in damages in an action at law. Nothing in this
Agreement will be construed as prohibiting the Corporation from
pursuing any other remedies at law or in equity available to it
for such breach or violation or threatened violation.

	5.	 	Medical Insurance or Similar Benefit Plans

	(a)	 	If the Executive’s employment should terminate under
such circumstance as entitle the Executive to receive payments
pursuant to Section 3(b) hereof, the Executive shall be deemed
for purposes of all employee medical insurance or similar
benefits of the Corporation, to have remained in the continuous
employment of the Corporation for the two year period following
the Date of Termination and shall be entitled to all of the
medical insurance or similar benefits provided by the
Corporation as though the Executive had so remained in the
employment of the Corporation.
	 
	(b)	 	If for any reason, whether by law or provisions of
the Corporation’s employee medical insurance or similar benefit
plans, any benefits which the Executive would be entitled to
under the foregoing subsection of this Section 5 cannot be paid
pursuant to such employee benefit plans, then the Corporation
hereby contractually agrees to pay to the Executive the
difference between the benefits which the Executive would have
received in accordance with the foregoing subsections of this
Section if the relevant employee medical insurance or similar
benefit plan could have paid such benefit and the amount of
benefits, if any, actually paid by such employee medical
insurance or similar benefit plan. The Corporation shall not be
required to fund its obligation to pay the foregoing difference.

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	6.	 	Other Employment. In the event of a termination of employment under the
circumstances above described in Section 3(b) hereof, the Executive shall
have no duty to seek any other employment after termination of the
Executive’s employment with the Corporation and the Corporation hereby
waives and agrees not to raise or use any defense based on the position
that the Executive had a duty to mitigate or reduce the amounts due the
Executive hereunder by seeking other employment whether suitable or
unsuitable and should the Executive obtain other employment, then the only
effect of such on the obligations of the Corporation hereunder shall be
that the Corporation shall be entitled to credit against any payments
which would otherwise be made pursuant to Sections 5(a) or 5(b) hereof,
any comparable payments to which the Executive is entitled under the
employee benefit plans maintained by the Executive’s other employer or
employers in connection with services to such employer or employers after
termination of the Executive’s employment with the Corporation.
	 
	7.	 	Stock Awards and Options. If the Executive’s employment should terminate
under the circumstances described in Section 3(a) hereof, the Executive’s
rights, if any, with respect to any outstanding Stock Awards and/or
Options shall be governed by the plans and any related agreements pursuant
to which such Stock Awards and/or Options were granted. If the
Executive’s employment should terminate under such circumstances as
entitle the Executive to receive payments pursuant to Section 3(b) hereof,
then, with respect to each outstanding Option or Stock Award which did not
immediately vest and/or become exercisable upon the occurrence of a
Change-in-control, such Stock Award or Option shall remain outstanding in
accordance with its terms provided that in any event it shall
automatically vest upon termination of employment and/or become and remain
exercisable at any time after termination of employment until the stated
expiration date contained in the grant for such Stock Award or Option.
	 
	8.	 	Noncompetition. During the period of employment of Executive by the
Corporation and for five (5) years thereafter, the Executive will not, in
any geographic area in which the Corporation is offering its services and
products, without the prior written consent of the Corporation:

	(a)	 	directly or indirectly engage in,
	 
	(b)	 	assist or have an active interest in (whether as
proprietor, partner, investor, shareholder, officer, director or
any type of principal whatsoever), or
	 
	(c)	 	enter the employ of, or act as agent for, or advisor
or consultant to, any person, firm, partnership, association,
corporation or business organization,

-14-

 

	 	 	entity or enterprise which is or is about to become directly or
indirectly engaged in,

any business which is competitive with any business of the
Corporation or any subsidiary or affiliate thereof in which Executive
is or was engaged; provided, however, that the foregoing provisions
of this paragraph 8 are not intended to prohibit and shall not
prohibit Executive from purchasing, for investment, not in excess of
1% of any class of stock or other corporate security of any company
which is registered pursuant to Section 12 of the Securities Exchange
Act of 1934.

Executive acknowledges that the breach by the Executive of the
provisions of this Section 8 would cause irreparable injury to the
Corporation, acknowledges and agrees that remedies at law for any
such breach will be inadequate and consents and agrees that the
Corporation shall be entitled, without the necessity of proof of
actual damage, to injunctive relief in any proceedings which may be
brought to enforce the provisions of this Section 8. Executive
acknowledges and warrants that the Executive will be fully able to
earn an adequate livelihood for the Executive and the Executive’s
dependents if this Section 8 should be specifically enforced against
the Executive and that such enforcement will not impair the
Executive’s ability to obtain employment commensurate with the
Executive’s abilities and fully acceptable to the Executive .

If the scope of any restriction contained in this Section 8 is too
broad to permit enforcement of such restriction to its full extent,
then such restriction shall be enforced to the maximum extent
permitted by law and Executive and the Corporation hereby consent and
agree that such scope may be judicially modified in any proceeding
brought to enforce such restriction.

	9.	 	Terms. This Agreement shall be for an initial term of five years
commencing on the date hereof. This Agreement shall automatically renew
for an additional term of one year commencing on the fifth anniversary of
the date hereof and for succeeding additional terms each of one year on
each succeeding anniversary thereof until and unless either party sends
written notice of non-renewal to the other party at least six months prior
to a renewal date; provided, however, that if a Change-in-Control shall
occur during the initial or renewed term of this Agreement, then this
Agreement shall remain in effect until the second anniversary of the date
of the Change-in-Control.
	 
	10.	 	Miscellaneous.

	(a)	 	This Agreement shall be construed under the laws of
the Commonwealth of Pennsylvania.

-15-

 

	(b)	 	This Agreement constitutes the entire understanding
of the parties hereto with respect to the subject matter hereof
and may only be amended or modified by written agreement signed
by the parties hereto.
	 
	(c)	 	The Corporation will require any successor (whether
direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or
assets of the Corporation, by agreement in form and substance
satisfactory to the Executive, to expressly assume and agree to
perform this Agreement in the same manner required of the
Corporation and to perform it as if no such succession had taken
place. Failure of the Corporation to obtain such agreement
prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle the Executive to
terminate employment due to Good Reason for Termination. As
used in this Agreement, “Corporation” shall mean the Corporation
as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement
provided for in this subsection (c) or which otherwise becomes
bound by all the terms and provisions of this Agreement by
operation of law.
	 
	(d)	 	This Agreement shall inure to the benefit of and be
enforceable by the Executive and the Corporation and their
respective legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amounts would still be payable to
the Executive hereunder if the Executive had continued to live,
all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to the
Executive’s devisee, legatee or other designee or, if there be
no such designee, to the Executive’s estate.
	 
	(e)	 	Any notice or other communication provided for in
this Agreement shall be in writing and, unless otherwise
expressly stated herein, shall be deemed to have been duly given
if mailed by United States registered mail, return receipt
requested, postage prepaid, addressed in the case of the
Executive to the Executive’s office at the Corporation with a
copy to the Executive’s residence and in the case of the
Corporation to its principal executive offices, attention of the
Chief Executive Officer.
	 
	(f)	 	No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or
discharge is agreed to in writing signed by the Executive and
approved by resolution of the Board of Directors of the
Corporation. No waiver by either party hereto at any time of
any breach by the other party hereto of, or compliance with, any
condition or provision of

-16-

 

	 	 	this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been
made by either party which are not set forth expressly in this
Agreement. Nothing contained herein shall impair the right of
the Corporation to terminate the Executive’s employment,
subject to making any payments required to be made hereunder.
	 
	(g)	 	The invalidity or unenforceability of any provisions
of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which
shall remain in full force and effect.
	 
	(h)	 	This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original
but all of which together will constitute one and the same
instrument.
	 
	(i)	 	If litigation should be brought to enforce, interpret
or challenge any provision contained herein, the prevailing
party in such litigation, if any, shall be entitled to its
reasonable attorney’s fees and disbursements and other costs
incurred in such litigation and to interest on any money
judgment obtained calculated at the prime rate of interest in
effect from time to time at Citizen’s Bank, N.A. (or its
successor), from the date that the payment should have been made
under this Agreement.
	 
	(j)	 	Excise Taxes.

(i) For purposes of this subsection 10(j), (1) a Payment shall
mean any payment or distribution in the nature of compensation
to or for the benefit of the Executive, whether paid or payable
pursuant to this Agreement or otherwise; (2) Agreement Payment
shall mean a Payment paid or payable pursuant to this Agreement
(disregarding this subsection 10(j)); (2) Net After Tax Receipt
shall mean the Present Value of a Payment net of all taxes
imposed on the Executive with respect thereto under Sections 1
and 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), determined by applying the highest marginal rate under
Section 1 of the Code applicable to the Executive’s taxable
income for such year; (4) “Present Value” shall mean such value
determined in accordance with Section 280G(d) (4) of the Code;
and (5) “Reduced Amount” shall mean the greatest aggregate
amount of Payments, if any, which (x) is less than the sum of
all Payments and (y) results in aggregate Net After Tax
Receipts which are greater than the Net After Tax Receipts
which would result if the aggregate Payments were made.

-17-

 

(ii) Anything in this Agreement to the contrary
notwithstanding, in the event PriceWaterhouseCoopers L.L.P. (or
if PriceWaterhouseCoopers L.L.P. is the audit firm for the
Corporation at the time, another accounting firm of nationally
recognized standing selected by Executive) (the “Accounting
Firm”) shall determine that receipt of all Payments would
subject the Executive to tax under Section 4999 of the Code, it
shall determine whether some amount of Payments would meet the
definition of a “Reduced Amount.” If the Accounting Firm
determines that there is a Reduced Amount, the aggregate
Agreement Payments shall be reduced to such Reduced Amount;
provided, however, that if the Reduced Amount exceeds the
aggregate Agreement Payments, the aggregate Payments shall,
after the reduction of all Agreement Payments, be reduced (but
not below zero) in the amount of such excess. All
determinations made by the Accounting Firm under this Section
shall be binding upon the Corporation and the Executive and
shall be made within 60 days of the occurrence of an event
which requires the Corporation to make payments to the
Executive under this Agreement. No later than two business
days following the making of this determination by the
Accounting Firm, the Corporation shall pay to or distribute for
the benefit of the Executive such Payments as are then due to
the Executive under this Agreement and shall promptly pay to or
distribute for the benefit of the Executive in the future such
Payments as become due to the Executive under this Agreement.
The Corporation or its successor shall pay for the work done by
the Accounting Firm. In the event that the Accounting Firm is
unable or unwilling to make the determinations to be made under
this subsection 10(j) or for any reason such determinations are
not made within 60 days of the occurrence of the event which
requires the Corporation to make payments to the Executive
under this Agreement, the Corporation shall make all Payments
as are then due to the Executive without reduction no later
than two business days following the 60th day after the
occurrence of the event which required the Corporation to make
payments to the Executive under this Agreement.

(iii) While it is the intention of the Corporation and the
Executive to reduce the amounts payable or distributable to the
Executive hereunder only if the aggregate Net After Tax
Receipts to the Executive would thereby be increased, as a
result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that amounts will
have been paid or distributed by the Corporation to or for the
benefit of the Executive pursuant to this Agreement which
should not have been so paid or distributed (“Overpayments”) or
that additional amounts which will not have been paid or
distributed by the Corporation to or for the benefit of the
Executive

-18-

 

pursuant to this Agreement could have been so paid or
distributed (“Underpayment”), in each case, consistent with the
calculation of the Reduced Amount hereunder. In the event that
the Accounting Firm, based either upon the assertion of a
deficiency by the Internal Revenue Service against the
Corporation or the Executive which the Accounting Firm believes
has a high probability of success or controlling precedent or
other substantial authority, determines that an Overpayment has
been made, any such Overpayment paid or distributed by the
Corporation to or for the benefit of the Executive shall be
treated for all purposes as a loan ab initio to the Executive
which the Executive shall repay to the Corporation together
with interest at the applicable federal rate provided for in
Section 7872(f) (2) of the Code; provided, however, that no
such loan shall be deemed to have been made and no amount shall
be payable by the Executive to the Corporation if and to the
extent such deemed loan and payment would not either reduce the
amount on which the Executive is subject to tax under Section 1
and Section 4999 of the Code or generate a refund of such
taxes. In the event that the Accounting Firm, based upon
controlling precedent or other substantial authority,
determines that an Underpayment has occurred, any such
Underpayment shall be promptly paid by the Corporation to or
for the benefit of the Executive together with interest at the
applicable federal rate provided for in Section 7872(f) (2) of
the Code.

-19-

 

     IN WITNESS WHEREOF, this Agreement has been executed on the date first
above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	BLACK BOX CORPORATION
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 /s/ Christopher H. Gebhardt	 	 	 	By:	 	/s/ Fred C. Young	 	 	 	 	 	 
	

	 	

	 	 	 	 	 	
	 	 	 	 	 	 
	

	 	 	 	 	 	Title:	 	 CEO	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
	 	/s/ Darlene Emanuel	 	 	 	 	 	 /s/ Kathleen Bullions	 	 	 	 	 	 
	
	 	 	 	 	 	
	 	 	 	 	 	 

-20-

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