Document:

Unassociated Document

    Exhibit
      10.6

     

    FORM
      OF

    SWING
      LINE NOTE

    
      	
              $
                __________________________

            	
              October
                3, 2006

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, SIG ACQUISITION CORP., a Delaware corporation
      (“Borrower”), promises to pay to the order of LaSalle Bank National Association
      (“Swing Line Lender”) at the main office of LaSalle Bank National Association,
      as Administrative Agent, as hereinafter defined, at 135 South LaSalle Street,
      Chicago, Illinois 60603, the principal sum of 

    

    DOLLARS

    

    or
      the
      aggregate unpaid principal amount of all Swing Line Loans, as defined in the
      Credit Agreement (as hereinafter defined) made by Swing Line Lender to Borrower
      pursuant to Section 2.2.4
      of the
      Credit Agreement, whichever is less, in lawful money of the United States of
      America on the earlier of the Termination Date, as defined in the Credit
      Agreement, or, with respect to each Swing Line Loan, the Swing Line Loan
      Maturity Date applicable thereto.

    

    As
      used
      herein, “Credit Agreement” means the Credit Agreement dated as of
      October 3, 2006, among Borrower, the Lenders, as defined therein, and
      LaSalle Bank National Association, as arranger and administrative agent for
      the
      Lenders (“Administrative Agent”), as the same may from time to time be amended,
      restated or otherwise modified. Each capitalized term used herein that is
      defined in the Credit Agreement and not otherwise defined herein shall have
      the
      meaning ascribed to it in the Credit Agreement.

    

    Borrower
      also promises to pay interest on the unpaid principal amount of each Swing
      Line
      Loan from time to time outstanding, from the date of such Swing Line Loan until
      the payment in full thereof, at the rates per annum that shall be determined
      in
      accordance with the provisions of Section
      4.1(a)
      of the
      Credit Agreement. Such interest shall be payable on each date provided for
      in
      such Section
      4.1(a);
      provided, however, that interest on any principal portion that is not paid
      when
      due shall be payable on demand.

    

    The
      principal sum hereof from time to time and the payments of principal and
      interest thereon, shall be shown on the records of Swing Line Lender by such
      method as Swing Line Lender may generally employ; provided, however, that
      failure to make any such entry shall in no way detract from the obligation
      of
      Borrower under this Note.

    

    If
      this
      Note shall not be paid at maturity, whether such maturity occurs by reason
      of
      lapse of time or by operation of any provision for acceleration of maturity
      contained in the Credit Agreement, the principal hereof and the unpaid interest
      thereon shall bear interest, until paid, at a rate per annum equal to two
      percent (2%) in excess of the rate otherwise applicable thereto. All payments
      of
      principal of and interest on this Note shall be made in immediately available
      funds.

    

    This
      Note
      is the Swing Line Note referred to in the Credit Agreement. Reference is made
      to
      the Credit Agreement for a description of the right of the undersigned to
      anticipate payments hereof, the right of the holder hereof to declare this
      Note
      due prior to its stated maturity, and other terms and conditions upon which
      this
      Note is issued.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Except
      as
      expressly provided in the Credit Agreement, Borrower expressly waives
      presentment, demand, protest and notice of any kind. This Note shall be governed
      by and construed in accordance with the laws of the State of New York, without
      regard to conflicts of laws provisions.

    

    JURY
      TRIAL WAIVER.
      BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A
      JURY
      PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
      OTHERWISE, AMONG BORROWER, ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF,
      ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE OR ANY OTHER
      NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
      CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

     

    
      	
            	 	 
	 	SIG
              ACQUISITION
              CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
            	
              

            
	 	Name:	
            
	 	 	
              

            
	 	
              Title:Exhibit
        G to Asset 

      Purchase
        Agreement

       

    

    EMPLOYMENT
      AGREEMENT

    

    EMPLOYMENT
      AGREEMENT
      (the
“Agreement”),
      dated
      as of October 3, 2006, between Net
      Perceptions, Inc.,
      a
      Delaware corporation, (the “Company”)
      and
Paul
      Vesey
      (the
“Employee”).
      

    

    

    W
      I T N E S S E T H :

    

    WHEREAS,
      the
      Company desires to employ the Employee as President & General Manager-
      Concord Steel and to be assured of his services on the terms and conditions
      hereinafter set forth; and

    

    WHEREAS,
      the
      Employee is willing to accept such employment on such terms and
      conditions;

    

    NOW
      THEREFORE,
      in
      consideration of the mutual covenants and agreements set forth in this
      Agreement, the Company and the Employee hereby agree as follows:

    

    1.    Term. 

    

    The
      term
      of this Agreement shall commence and be effective only upon the closing (the
      “Closing”)
      of the
      transactions contemplated by that certain Asset Purchase Agreement (the
“Purchase
      Agreement”),
      dated
      as of September 22, 2006, by and between the Company, SIG Acquisition Corp.
      (the
“Purchaser”)
      and
      CRC Acquisition Co., LLC (the “Commencement
      Date”)
      and,
      unless renewed pursuant to the mutual agreement of the Company and the Employee,
      shall expire on the third anniversary of the Commencement Date, if a Business
      Day, or otherwise on the first Business Day thereafter, subject to earlier
      termination as provided herein (the “Term”).
      As
      used herein, “Business Day” means any day other than a Saturday, Sunday or other
      day on which commercial banks in New York, New York are authorized or otherwise
      required by law to close. 

    

    2.    Duties.
      

    

    (a)
      During the Term of this Agreement, the Employee shall serve as President &
General Manager- Concord Steel, or in such other executive capacity as may
      be
      assigned to him, and shall perform all duties commensurate with his position
      and
      as may be assigned to him by the Chairman of the Board of Directors of the
      Company or such other person(s) as may be designated by the Board. The Employee
      shall devote his full business time and energies to the business and affairs
      of
      the Company and shall use his best efforts, skills and abilities to promote
      the
      interests of the Company, and to diligently and competently perform the duties
      of his position. 

    

    (b)
      The
      Employee shall report to the Company’s President and Chief Executive Officer or
      such other person(s) as may be designated by the Board and shall at all times
      keep the Company’s President and Chief Executive Officer (or such other officer
      as the Chairman of the Board or the Board may designate from time to time)
      promptly and fully informed (in writing if so requested) of his conduct and
      of
      the business or affairs of the Company, and provide such explanations of his
      conduct as may be required.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.    Compensation,
      Bonus, Stock Options, Benefits, etc.

    

    (a)
      Salary.
      During
      the Term of this Agreement, the Company shall pay to the Employee, and the
      Employee shall accept from the Company, as compensation for the performance
      of
      services under this Agreement and the Employee's observance and performance
      of
      all of the provisions hereof, an annual salary at the rate of $180,000 (the
      “Base
      Compensation”).
      The
      Base Compensation shall be payable in accordance with the normal payroll
      practices of the Company and shall be subject to withholding for applicable
      taxes and other amounts. The Employee’s performance and any potential increases
      in the Base Compensation shall be subject to annual review by the
      Company.

    

    (b)
      Cash
      EBITDA Bonus.
      In
      addition to the Base Compensation described above, the Employee shall be
      entitled to an annual performance bonus of up to 100% of Base Compensation
      (the
“Maximum
      Annual EBITDA Bonus”)
      based
      upon the achievement of Company goals as described below. If the Company
      achieves earnings before interest, taxes, depreciation and amortization, as
      computed by the Company on or prior to its filing of its annual report on Form
      10-K (“EBITDA”)
      of the
      target expressed in the Company’s annual budget approved by the Board for such
      fiscal year (each such target, an “Annual
      EBITDA Target”),
      the
      Employee’s bonus shall be equal to 50 percent of his Base Compensation (the
“Annual
      EBITDA Target Bonus”).
      If an
      Annual EBITDA Target is exceeded, the Employee’s bonus shall be increased above
      the Annual EBITDA Target Bonus by 5 percentage points for every one percent
      increase in EBITDA above the Annual EBITDA Target up to a maximum bonus amount
      equal to the Maximum Annual EBITDA Bonus. If the Annual EBITDA Target is not
      achieved, the Employee’s bonus shall be reduced from the Annual EBITDA Target
      Bonus by five percentage points for every one percent shortfall in EBITDA.
      

    

    (c) Cash
      Revenue Bonus (solely for Fiscal Year ended 2006).
      In
      addition to all payments set forth above, if the Company achieves revenues
      of
      $80,700,000 for the fiscal year ending December 31, 2006, the Employee shall
      be
      entitled to a payment of $125,000, payable upon filing of the Company’s annual
      report on Form 10-K for fiscal year 2006.

    

    (d)
      Restricted
      Stock.
      

    

    (i) On
      the
      Commencement Date, the Company shall issue and grant to Employee, under the
      Company’s 1999 Equity Stock Incentive Plan (the “Plan”)
      and
      applicable law, 147,059 shares of restricted Common Stock of the Company (the
      “Restricted
      Stock”)
      which
      shall fully vest upon filing of the Company’s annual report on Form 10-K for
      fiscal year 2007 upon the occurrence of any of the following: (i) the Purchaser
      achieving revenues of at least $90,000,000 for the fiscal year ending December
      31, 2007, (ii) the Purchaser achieving gross profit of at least $18,600,000
      for
      the fiscal year ending December 31, 2007 or (iii) the Purchaser achieving EBITDA
      of at least $14,800,000 for the fiscal year ending December 31, 2007.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (ii) In
      addition, on the Commencement Date, the Company shall issue and grant to
      Employee 11,765 shares of fully vested Restricted Stock under the Plan and
      applicable law. 

    

    (iii) During
      the Term of this Agreement the Employee agrees not to sell, pledge, hypothecate
      or otherwise transfer the Restricted Stock within a one year period after grant
      without the consent of the Board of Directors (the “Board”). The terms and
      provisions of Restricted Stock granted pursuant hereto shall be set forth in
      a
      restricted stock agreement in a form satisfactory to the Company and consistent
      with the Company’s standard form of restricted stock agreement under the Plan.
      Upon the occurrence of a “change in control” (as defined in the Plan) all
      unvested Restricted Stock shall vest immediately. 

    

    (e)
      Other
      Bonus Plans.
      The
      Employee may be entitled to participate in such other bonus plans and stock
      incentive plans during the Term of this Agreement as the Compensation Committee
      of the Board may, in its sole and absolute discretion, determine.
      

    

    (f)
      Benefits.
      During
      the Term of this Agreement and during any Severance Period (as defined below),
      the Employee shall be entitled to participate in or benefit from, in accordance
      with the eligibility and other provisions thereof, the Company's medical
      insurance and other fringe benefit plans or policies as the Company may make
      available to, or have in effect for, its senior executive officers from time
      to
      time. The Company and its affiliates retain the right to terminate or alter
      any
      such plans or policies from time to time. The Employee shall also be entitled
      to
      four weeks paid vacation each year, sick leave and other similar benefits in
      accordance with policies of the Company from time to time in effect for its
      senior executive officers.

    

    (g)
      Reimbursement
      of Business Expenses.
      During
      the Term of this Agreement, upon submission of proper invoices, receipts or
      other supporting documentation reasonably satisfactory to the Company and in
      accordance with and subject to the Company’s expense reimbursement policies, the
      Employee shall be reimbursed by the Company for all reasonable business expenses
      actually and necessarily incurred by the Employee on behalf of the Company
      in
      connection with the performance of services under this Agreement.

    

      (h)
      Taxes.
      Any
      amount of compensation paid to the Employee shall be subject to withholding
      for
      applicable taxes and other required amounts. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    4.    Representations
      of Employee. 

    

    (a)
      The
      Employee represents and warrants that he is not party to, or bound by, any
      agreement or commitment, or subject to any restriction, including but not
      limited to agreements related to previous employment containing confidentiality
      or non-competition covenants, which presently has or may in the future have
      a
      possibility of adversely affecting the business of the Company or the
      performance by the Employee of his duties under this Agreement. 

    

    (b)
      During the Term and the Severance Period ( as defined in Section 7(f) hereof),
      if any, the Employee agrees that he will not offer for sale, sell, pledge,
      assign, hypothecate or otherwise create any interest in or dispose of (or enter
      into any transaction or device that is designed to, or could reasonably be
      expected to, result in any of the foregoing) any shares of Common Stock owned
      by
      him on the Commencement Date or any shares of Common Stock owned or acquired
      by
      him after the Commencement Date upon the conversion or exercise of options
      or
      any securities convertible into or exercisable or exchangeable for Common Stock,
      without first notifying the Board in writing to inquire as to whether there
      exists any facts or circumstances that would make it inadvisable for the Company
      if the Employee engaged in such transaction; provided, however, that the
      restrictions set forth in this Section 4(b) will not apply to the Employee
      in
      the event of a termination of this Agreement by reason of his death or without
      cause pursuant to Section 7(c). Notwithstanding any provision of this Section
      4(b), Employee shall, to the extent permitted under applicable law, rule,
      regulation and the Plan, and upon prior notice to the Company, be permitted
      to
      transfer shares of Common Stock of the Company to his immediate family members
      or trusts for the benefit of his immediate family members for estate planning
      purposes, provided that any such transferees shall be subject to the
      restrictions applicable to employee set forth herein.

    

    (c)
      The
      representations, warranties and covenants of this Section 4 shall survive
      termination of the Employee’s employment hereunder and the expiration of the
      Term hereof.

     

    5.    Confidentiality,
      Noncompetition, Nonsolicitation and Non-Disparagement.

    

    For
      purposes of this Section 5, all references to the Company shall be deemed to
      include the Company’s affiliates and subsidiaries and their respective
      subsidiaries, whether now existing or hereafter established or acquired. In
      consideration for the compensation and benefits provided to the Employee
      pursuant to this Agreement, the Employee agrees with the provisions of this
      Section 5.

    

    (a)
      Confidential
      Information.
      (i) The
      Employee acknowledges that as a result of his retention by the Company, the
      Employee has and will continue to have knowledge of, and access to, proprietary
      and confidential information of the Company, including, without limitation,
      research and development plans and results, software, databases, technology,
      inventions, trade secrets, technical information, know-how, plans,
      specifications, methods of operations, product and service information, product
      and service availability, pricing information (including pricing strategies),
      financial, business and marketing information and plans, and the identity of
      customers, clients and suppliers (collectively, the “Confidential
      Information”),
      and
      that the Confidential Information, even though it may be contributed, developed
      or acquired by the Employee, constitutes valuable, special and unique assets
      of
      the Company developed at great expense which are the exclusive property of
      the
      Company. Accordingly, the Employee shall not, at any time during the Term of
      this Agreement or for a period of five years thereafter, use, reveal, report,
      publish, transfer or otherwise disclose to any person, corporation or other
      entity, any of the Confidential Information without the prior written consent
      of
      the Company, except to responsible officers and employees of the Company and
      other responsible persons who are in a contractual or fiduciary relationship
      with the Company and who have a need for such Confidential Information for
      purposes in the best interests of the Company, and except for such Confidential
      Information which is or becomes of general public knowledge from authorized
      sources other than the Employee.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (ii)
      The
      Employee acknowledges that the Company would not enter into this Agreement
      without the assurance that all the Confidential Information will be used for
      the
      exclusive benefit of the Company. 

    

    (b)
      Return
      of Confidential Information.
      Upon
      the termination of this Agreement or upon the request of the Company, the
      Employee shall promptly return to the Company all Confidential Information
      in
      his possession or control, including but not limited to all drawings, manuals,
      computer printouts, computer databases, disks, data, files, lists, memoranda,
      letters, notes, notebooks, reports and other writings and copies thereof and
      all
      other materials relating to the Company’s business, including without limitation
      any materials incorporating Confidential Information.

    

    (c)
      Inventions,
      etc.
      During
      the Term and for a period of one year thereafter, the Employee will promptly
      disclose to the Company all designs, processes, inventions, improvements,
      developments, discoveries, processes, techniques, and other information related
      to the business of the Company conceived, developed, acquired, or reduced to
      practice by him alone or with others during the Term of this Agreement, whether
      or not conceived during regular working hours, through the use of Company time,
      material or facilities or otherwise (“Inventions”).

    

    The
      Employee agrees that all copyrights created in conjunction with his service
      to
      the Company and other Inventions, are “works made for hire” (as that term is
      defined under the Copyright Act of 1976, as amended). All such copyrights,
      trademarks, and other Inventions shall be the sole and exclusive property of
      the
      Company, and the Company shall be the sole owner of all patents, copyrights,
      trademarks, trade secrets, and other rights and protection in connection
      therewith. To the extent any such copyright and other Inventions may not be
      works for hire, the Employee hereby assigns to the Corporation any and all
      rights he or she now has or may hereafter acquire in such copyrights and any
      other Inventions. Upon request the Employee shall deliver to the Company all
      drawings, models and other data and records relating to such copyrights,
      trademarks and Inventions. The Employee further agrees as to all such
      Inventions, to assist the Company in every proper way (but at the Company’s
      expense) to obtain, register, and from time to time enforce patents, copyrights,
      trademarks, trade secrets, and other rights and protection relating to said
      Inventions in and all countries, and to that end the Employee shall execute
      all
      documents for use in applying for and obtaining such patents, copyrights,
      trademarks, trade secrets and other rights and protection on and enforcing
      such
      Inventions, as the Company may desire, together with any assignments thereof
      to
      the Company or persons designated by it. Such obligation to assist the Company
      shall continue beyond the termination of the Employee’s service to the Company,
      but the Company shall compensate the Employee at a reasonable rate after
      termination of service for time actually spent by the Employee at the Company’s
      request for such assistance. In the event the Company is unable, after
      reasonable effort, to secure the Employee’s signature on any document or
      documents needed to apply for or prosecute any patent, copyright, trademark,
      trade secret, or other right or protection relating to an Invention, whether
      because of the Employee’s physical or mental incapacity or for any other reason
      whatsoever, the Employee hereby irrevocably designates and appoints the Company
      and its duly authorized officers and agents as his agent coupled with an
      interest and attorney-in-fact, to act for and in his behalf and stead to execute
      and file any such application or applications and to do all other lawfully
      permitted acts to further the prosecution and issuance of patents, copyrights,
      trademarks, trade secrets, or similar rights or protection thereon with the
      same
      legal force and effect as if executed by the Employee. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (d)
      Non-competition.
      During
      the Term of this Agreement and (A) for a period of one year after the
      termination of this Agreement pursuant to Sections 7(a), 7(b) or 7(e) hereof
      (subject to extension pursuant to Section 7(f) hereof), as applicable; or (B)
      in
      the event of termination pursuant to Sections 7(c) or 7(d), the duration of
      the
      Severance Period (as defined in Section 7(f)) the Employee (i) shall not utilize
      his special knowledge of the business operations of the Company and his
      relationships with customers and suppliers of the Company and others to compete
      with the Company and (ii) without limiting the forgoing, shall not engage,
      directly or indirectly, or have an interest, directly or indirectly, anywhere
      in
      the United States of America or any other geographic area where the Company
      does
      business or in which its products or services are marketed, alone or in
      association with others, as principal, officer, agent, Employee, director,
      partner or stockholder (except with respect to his employment by the Company),
      or through the investment of capital, lending of money or property, rendering
      of
      services or otherwise, in any business competitive with or substantially similar
      to that engaged in by the Company during the Term of this Agreement (it being
      understood hereby, that the ownership by the Employee of five percent (5%)
      or
      less of the stock of any company listed on a national securities exchange shall
      not be deemed a violation of this Section 5). 

    

    (e)
      Non-solicitation.
      During
      the Term of this Agreement and (A) for a period of one year after the
      termination of this Agreement pursuant to Sections 7(a), 7(b) or 7(e) hereof,
      as
      applicable or (B) in the event of termination pursuant to Sections 7(c) or
      7(d)
      hereof, the duration of the Severance Period (as defined in Section 7(f) the
      Employee shall not, and shall not permit any of his employees, agents or others
      under his control to, directly or indirectly, on behalf of himself or any other
      person, (i) call upon, accept competitive business from, or solicit the
      competitive business of any individual or entity who is, or who had been at
      any
      time during the preceding two years, a customer of the Company or any successor
      to the business of the Company, or otherwise divert or attempt to divert any
      business from the Company or any such successor, or (ii) directly or indirectly
      recruit or otherwise solicit or induce any person who is an Employee of, or
      otherwise engaged by, the Company or any successor to the business of the
      Company to terminate his employment or other relationship with the Company
      or
      such successor, or hire or enter into any business with any person is employed
      by or who has left the employ of the Company or any such successor during the
      preceding two years. The Employee shall not at any time, directly or indirectly,
      use or purport to authorize any person to use any name, mark, logo, trade dress
      or other identifying words or images which are the same as or similar to those
      used at any time by the Company in connection with any product or service,
      whether or not such use would be in a business competitive with that of the
      Company. Any breach or violation by the Employee of the provisions of this
      Section 5 shall toll the running of any time periods set forth in this Section
      5
      for the duration of any such breach or violation. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    (f)
      Non-Disparagement.
      The
      Employee shall not at any time, directly or indirectly, take any action (whether
      orally or in writing or otherwise) which has or may be expected to have the
      effect of disparaging the Company or any of its subsidiaries or affiliates
      or
      their directors, officers or executives or their respective reputations,
      including, but not limited to, their business models, practices, relationships,
      internal workings, financial condition or operations, in any manner whatsoever
      at any time.

    

    6.    Remedies.
      The
      restrictions set forth in Section 5 are considered by the parties to be fair
      and
      reasonable. The Employee acknowledges that the restrictions contained in Section
      5 will not prevent him from earning a livelihood. The Employee further
      acknowledges that the Company would be irreparably harmed and that monetary
      damages would not provide an adequate remedy in the event of a breach of the
      provisions of Section 5. Accordingly, the Employee agrees that, in addition
      to
      any other remedies available to the Company, the Company shall be entitled
      to
      injunctive and other equitable relief to secure the enforcement of these
      provisions, and shall be entitled to receive reimbursement from the Employee
      for
      all reasonable attorneys' fees and expenses incurred by the Company in enforcing
      these provisions. In connection with seeking any such equitable remedy,
      including, but not limited to, an injunction or specific performance, the
      Company shall not be required to post a bond as a condition to obtaining such
      remedy. If any provisions of Sections 5 or 6 relating to the time period, scope
      of activities or geographic area of restrictions is declared by a court of
      competent jurisdiction to exceed the maximum permissible time period, scope
      of
      activities or geographic area, the time period, scope of activities or
      geographic area, as the case may be, shall be reduced to the maximum which
      such
      court deems enforceable. If any provisions of Sections 5 or 6 other than those
      described in the preceding sentence are adjudicated to be invalid or
      unenforceable, the invalid or unenforceable provisions shall be deemed amended
      (with respect only to the jurisdiction in which such adjudication is made)
      in
      such manner as to render them enforceable and to effectuate as nearly as
      possible the original intentions and agreement of the parties. For purposes
      of
      this Section 6, all references to the Company shall be deemed to include the
      Company's affiliates and subsidiaries, whether now existing or hereafter
      established or acquired.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    7.    Termination;
      Non-renewal.
      This
      Agreement may be terminated prior to the expiration of the Term set forth in
      Section 1 upon the occurrence of any of the events set forth in, and subject
      to
      the terms of, this Section 7.

    

    (a)
      Death
      or Permanent Disability.
      If
      the
      Employee dies or becomes permanently disabled, this Agreement shall terminate
      effective at the end of the calendar month during which his death occurs or
      when
      his disability is deemed to have become permanent. If the Employee is unable
      to
      perform his normal duties for the Company because of illness or incapacity
      (whether physical or mental) for 60 consecutive days during the Term of this
      Agreement, or for 90 days (whether or not consecutive) out of any calendar
      year
      during the Term of this Agreement, his disability shall be deemed to have become
      permanent. If this Agreement is terminated on account of the death or permanent
      disability of the Employee, then the Employee or his estate shall be entitled
      to
      receive accrued Base Compensation through the date of such termination and
      the
      Employee and the Employee’s estate shall have no further entitlement to Base
      Compensation, bonus, or benefits, except (i) in the case of the Employee’s
      death, the proceeds of any life insurance policies payable to his beneficiaries
      shall be paid pursuant to the terms and conditions of such policies following
      the effective date of such termination and (ii) in the case of the Employee’s
      death or permanent disability, if not already received, the bonus specified
      in
      Section 3(c) hereof (subject to the specified target being met), and payable
      on
      the payment date specified therein.

    

    (b)
      Cause.
      This
      Agreement may be terminated at the Company’s option, immediately upon written
      notice to the Employee, upon: (i) fraud, criminal conduct, dishonesty or
      embezzlement by the Employee; (ii) the Employee’s misappropriation of funds of
      the Company or any of the Company’s affiliates; (iii) the Employee’s gross
      negligence, willful or intentional act or omission in the performance of his
      duties under this Agreement as determined by the Board; (iv) the Employee’s
      disregard of a lawful direction of the Board or the executive officer to whom
      the Employee reports that continues unremedied for six days following the
      Employee’s receipt of written notice from the Board (except that if two prior
      notices have been delivered to Employee for substantively the same or similar
      matter, no further notice or cure or compliance period shall be required);
      (v)
      the Employee’s appropriation for himself of a Company corporate opportunity
      without the express prior written consent of the Board; (vi) the Employee’s
      material breach of any of his obligations under this Agreement (other than
      Section 5 of this Agreement) that continues unremedied for 14 days following
      the
      Employee’s receipt of written notice from the Board thereof; (vii) the
      Employee’s breach of any of his obligations of any of the provisions of Section
      5 of this Agreement; or (viii) the Employee is convicted of a felony. If this
      Agreement is terminated by the Company for cause, then the Employee shall be
      entitled to receive accrued Base Compensation through the date of such
      termination.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (c)
      Without
      Cause.
      This
      Agreement may be terminated at any time by the Company without cause immediately
      upon giving written notice to the Employee of such termination. Upon termination
      of this Agreement by the Company pursuant to this Section 7(c), (i) the Employee
      shall be entitled to receive his Base Compensation for the remainder of the
      Term
      (based on the highest rate of annual base salary paid to the Employee during
      the
      Term) and (ii) all unvested stock awards of the Employee shall vest at the
      end
      of the non-compete period as described in Sections 5(d) and 5(e) hereof. After
      termination pursuant to this Section 7(c), the Employee shall continue to be
      bound by the provisions of Sections 5(d) and 5(e) of this Agreement for the
      Severance Period (as defined in Section 7(f) hereof). 

    

    (d)
      Non-renewal.
      In the
      event the Company fails to renew or extend the Term, the Employee shall be
      entitled to receive his Base Compensation (based on the highest rate of annual
      base salary paid to the Employee during the Term) for an additional period
      of 12
      months after the expiration of the Term and shall continue to be bound by the
      provisions of Sections 5(d) and 5(e) of this Agreement for such additional
      period, provided, however, the Employee’s right to receive any such payment
      shall be subject to the Employee complying with the terms of this Agreement.
      

    

    (e)
      By
      Employee.
      The
      Employee may terminate the Agreement at anytime upon providing the Company
      with
      two weeks prior written notice. If this Agreement is terminated by the Employee
      pursuant to this Section 7(e), the Employee shall be entitled to receive his
      accrued Base Compensation and benefits through the effective date of such
      termination and the Employee shall have no further entitlement to Base
      Compensation, bonus, or benefits from the Company following the effective date
      of such termination; provided, however, that if Employee terminates this
      Agreement within 45 days after being notified that he will be relocated (other
      than with respect to interim relocations for operational purposes) to an office
      that is more than 45 miles from 1451 Buena Vista Avenue, N.E., Warren, Ohio,
      the
      Employee shall be entitled to receive his Base Compensation for the remainder
      of
      the Term (based on the highest rate of annual base salary paid to the Employee
      during the Term).

    

    (f)
      Severance
      Payment and Period.
      The
      period of time during which the Company continues to pay the Employee (or would
      continue to pay, but for any breach by the Employee of this Agreement) following
      the termination or expiration of this Agreement pursuant to Sections 7(b),
      (c),
      (d), (e) or this Section 7(f) shall be referred to as the “Severance
      Period”,
      and
      the amounts due thereunder shall be referred to as the “Severance
      Payment.”
Upon
      termination of this Agreement pursuant to Sections 7(b), (c), (d) or (e) the
      Company shall have the election (such election to be exercised within 10 days
      after the termination of Employee’s employment pursuant to such provisions), to
      extend the applicable period that the covenants set forth in Sections 5(d)
      and
      (e) are applicable to the Employee through and including the second anniversary
      of the date of termination (or through and including any lesser period) provided
      that the Company agrees to pay the Employee (or would continue to pay, but
      for
      any breach by the Employee of this Agreement) the Base Compensation (based
      on
      the highest rate of annual base salary paid to the Employee during the Term)
      during such extension period during which the covenants are extended. The
      Severance Payment shall be payable bi-monthly in accordance with the normal
      payroll practices of the Company and shall be subject to withholding for
      applicable taxes and other amounts. Notwithstanding the foregoing, upon a breach
      by the Employee of Section 5 of this Agreement, any unpaid portion of the
      Severance Payment shall not be payable and the Employee shall immediately repay
      to the Company the full gross amount of any Severance Payment already paid
      before taking into account any withholdings for applicable taxes and other
      amounts. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    8.    Life
      Insurance.
      The
      Employee acknowledges that the Company may seek to obtain key man life insurance
      policy on his life with the Company as the named beneficiary. The Employee
      hereby agrees to provide such information and to submit to such medical
      examinations and otherwise cooperate as may be required to assist the Company
      in
      obtaining such policy. During the Term, provided that Employee is insurable
      at
      customary and reasonable premium rates for a person of his age, the Company
      will
      maintain, and pay all premiums under, a policy of life insurance on Employee
      pursuant to which no less than $500,000 of the death benefit will be payable
      to
      Employee's spouse or other beneficiary chosen by Employee.

    

    9.    Miscellaneous.

    

    (a)
      Survival.
      The
      provisions of Sections 4, 5, 6, 7, 8 and 9 shall survive the termination of
      this
      Agreement.

    

    (b) Entire
      Agreement.
      This
      Agreement sets forth the entire understanding of the parties and, except as
      specifically set forth herein, merges and supersedes any prior or
      contemporaneous agreements between the parties pertaining to the subject matter
      hereof.

    

    (c) Modification.
      This
      Agreement may not be modified or terminated orally, and no modification,
      termination or attempted waiver of any of the provisions hereof shall be binding
      unless in writing and signed by the party against whom the same is sought to
      be
      enforced.

    

    (d) Waiver.
      Failure
      of a party to enforce one or more of the provisions of this Agreement or to
      require at any time performance of any of the obligations hereof shall not
      be
      construed to be a waiver of such provisions by such party nor to in any way
      affect the validity of this Agreement or such party’s right thereafter to
      enforce any provision of this Agreement, nor to preclude such party from taking
      any other action at any time which it would legally be entitled to
      take.

    

    (e)
      Successors
      and Assigns.
      Neither
      party shall have the right to assign this Agreement, or any rights or
      obligations hereunder, without the consent of the other party; provided,
      however,
      that
      upon the sale of all or substantially all of the assets, business and good-will
      of the Company to another company, or upon the merger or consolidation of the
      Company with another company, this Agreement shall inure to the benefit of,
      and
      be binding upon, both Employee and the company purchasing such assets, business
      and goodwill, or surviving such merger or consolidation, as the case may be,
      in
      the same manner and to the same extent as though such other company were the
      Company; and provided,
      further,
      that the
      Company shall have the right to assign this Agreement to any affiliate or
      subsidiary of the Company. Subject to the foregoing, this Agreement shall inure
      to the benefit of, and be binding upon, the parties hereto and their legal
      representatives, heirs, successors and assigns.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (f) Communications.
      All
      notices, requests, demands and other communications under this Agreement shall
      be in writing and shall be deemed to have been given at the time personally
      delivered or when mailed in any United States post office enclosed in a
      registered or certified postage prepaid envelope and addressed to the addresses
      set forth below, or to such other address as any party may specify by notice
      to
      the other party; provided,
      however,
      that any
      notice of change of address shall be effective only upon receipt.

    

    
      	
              If
                to the Company:

              Net
                Perceptions, Inc.

              One
                Landmark Square, 22nd
                Floor

              Stamford,
                Connecticut 06901

              Facsimile:
                (203) 428-2024 

              Attention:
                Chief Executive Officer

            	
              With
                a copy to:

              Kane
                Kessler, P.C.

              1350
                Avenue of the Americas

              New
                York, New York 10019

              Facsimile:
                (212) 245-3009

              Attention:
                Robert L. Lawrence, Esq.

            
	 	 
	
              If
                to the Employee, to:

               

              Paul
                Vesey

              3133
                Austintown-Warren Rd.

              Mineral
                Ridge, OH 44440

            	 

    

    

    (g) Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable by a court
      of
      competent jurisdiction, such invalidity or unenforceability shall not affect
      the
      validity and enforceability of the other provisions of this Agreement and the
      provisions held to be invalid or unenforceable shall be enforced as nearly
      as
      possible according to its original terms and intent to eliminate such invalidity
      or unenforceability.

    

    (h) Jurisdiction;
      Venue.
      This
      Agreement shall be subject to the non-exclusive jurisdiction of the courts
      of
      New York County, New York. Any breach of any provision of this Agreement shall
      be deemed to be a breach occurring in the State of New York by virtue of a
      failure to perform an act required to be performed in the State of New York,
      and
      the parties irrevocably and expressly agree to submit to the non-exclusive
      jurisdiction of the courts of New York County, New York for the purpose of
      resolving any disputes among them relating to this Agreement or the transactions
      contemplated by this Agreement and waive any objections on the grounds of forum
      non conveniens or otherwise. The parties hereto agree to service of process
      by
      certified or registered United States mail, postage prepaid, addressed to the
      party in question.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (i) Governing
      Law; Indemnification.
      This
      Agreement is made and executed and shall be governed by the laws of the State
      of
      New York, without regard to the conflicts of law principles thereof.
      Notwithstanding the foregoing, the Employee shall have the right to be
      indemnified by the Company in accordance with the provisions of the Company's
      certificate of incorporation, bylaws, and the provisions of Delaware
      law.

    

    (j) Counterparts.
      This
      Agreement may be executed in any number of counterparts, but all counterparts
      will together constitute but one agreement. 

    

    (k)
      Third
      Party Beneficiaries.
      This
      Agreement is for the sole and exclusive benefit of the parties hereto and,
      except as provided herein, shall not be deemed for the benefit of any other
      person or entity.

    

    (l)
      IRC
      Section 409A.
      The
      parties to this Agreement intend that the Agreement complies with Section 409A
      of the Internal Revenue Code of 1986, as amended (the “Code”),
      where
      applicable, and this Agreement shall be interpreted in a manner consistent
      with
      that intention. Notwithstanding any provision of this Agreement, no payment
      or
      other distribution required to be made to the Employee hereunder (including
      any
      payment of cash, any transfer of property and any provision of taxable benefits)
      as a result of his termination with the Company shall be made prior to the
      earliest date that Employee may receive such payments without a penalty,
      remedial measure or similar effect being imposed against the Company or the
      Employee pursuant to Section 409A of the Code.

     

    

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has duly executed this Employment Agreement as of the date
      set forth above.

    

    

    
      	
              
                NET
                  PERCEPTIONS, INC.

              

               

               

              By: 
                ____________________________ 

              Name:
                Nigel P. Ekern

              Title:
                Chief Administrative Officer

            	
              EMPLOYEE

               

               

              __________________________________

              Paul
                Vesey

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]