Document:

AMENDMENT 1

	

   

  	

   

  	

  EXHIBIT 10.5     

  
	

   

   

  	

   

  	

   

  

 

AMENDMENT 1

 

 

To the lease dated May 6, 1997,

between Paulson Investment Company, as Tenant and Trustees of The

Oregon-Washington Carpenters-Employers Pension Trust Fund and Trustees of The

Oregon Laborers-Employers Pension Trust Fund, as Landlord, subsequently

assigned to Runhill Investment Company; for approximately 17,136 square feet on

the entire second and third floors of the Paulson Capital Building, 811 S.W.

Front Avenue, Portland, Oregon.  It is

now the intention of said parties to extend the term as stated below:

 

	

  Term:

  	

   

  	

  Commencing

  June 1, 2002 for a term of seven (7) years expiring on May 31, 2009.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Base Rental Rate:

  	

   

  	

  June 2002 -

  May 2005 at $25,704 per month.

  	

   

  
	

   

  	

   

  	

  June 2005 -

  May 2007 at $27,846 per month.

  	

   

  
	

   

  	

   

  	

  June 2007 -

  May 2009 at $29,988 per month.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Tenant Improvements:

  	

   

  	

  Landlord, at

  its sole cost, shall provide tenant improvement dollars up to a maximum

  amount of $171,316.00.  This amount

  shall be applied towards any and all costs, except furniture or personal

  items, associated with Tenant's improvement to the Premises.  Any costs in excess of $171,316.00 shall

  be the sole responsibility of the Tenant regardless of the reason for such

  excess.  Tenant Improvements can

  commence as soon as this Amendment 1 is fully executed and Landlord will

  reimburse Tenant on or before April 1, 2002 of Tenant funded Tenant

  Improvements.  After April 1, 2002,

  Landlord to fund Tenant Improvements up to the previously mentioned maximum

  amount of $171,316.00.  Landlord shall

  coordinate and manage Tenant's improvements to the Premises.  Any savings of the Tenant Improvement

  allowance of $171,316.00 will accrue to the Landlord and the Tenant equally.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  HVAC:

  	

   

  	

  Landlord

  represents and warrants that the building's mechanical (HVAC) system has the

  capacity to maintain ASHRAE Design Standards of operation between 70 and 76

  degrees Fahrenheit during the cooling season at up to 90 degrees outside

  temperature.  The heating temperature

  can be maintained from 66 to 70 degrees in the heating season with an outside

  temperature of not less than 32 degrees. 

  For extreme temperatures (above 90 or below 32 degrees), The ASHRAE

  Design Standards for Portland, Oregon calls for mechanical systems to maintain

  a differential of 20 (plus or minus) degrees from inside to outside

  temperatures during these periods. 

  Landlord warrants that it will maintain the existing mechanical

  systems to accommodate ASHRAE Design Standards.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Landlord

  shall install up to two (2) recording thermometers in mutually agreeable

  locations on each floor within the Premises upon request from Tenant.  In the event the HVAC is unable to

  maintain the temperatures as outlined above for a period of two (2) business

  days after written notice from the tenant, the landlord will credit to the

  tenants rental account the sum of $200.00 per day, in addition to any other

  remedies allowed under the lease or the law, commencing on the third business

  day until the temperature is with in the above temperatures range.  In the event of a mechanical breakdown of

  the HVAC system the landlord will use it's best efforts to have the system

  repaired immediately, including the use of expediting delivery of parts.  No penalty shall be imposed upon the landlord

  when it's best efforts are extended or for events outside the landlord's

  control.  

  	

   

  

 

 

	

   

  	

   

  	

  Tenant will

  include appropriate modifications including ductwork modifications and

  rebalancing to the mechanical system when doing their tenant improvements to

  the leased space.  The tenant will not

  increase the heat load in the leased premises from its current level without

  appropriate re-ducting, re-balancing the system and/or installation of

  additional cooling equipment.  The

  tenant will close the window blinds on the east and south exposures of the

  building to reduce solar heat gain in the leased premises as is appropriate

  for times of heavy solar load.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Electrical:

  	

   

  	

  Notwithstanding

  the provisions of Sections 4.2 or 5.2 of the lease or any other provisions

  thereof which are inconsistent with the following,  Landlord will provide at no cost to Tenant a thirty (30) pole

  panel with 100 amperage on the second floor and an additional thirty (30)

  pole panel with 100 amperage for the third floor.  The payment for distribution of this additional electrical

  capacity from the panel to the new outlets will be funded out of the previous

  Tenant improvement allowance or by Tenant.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Option to Renew:

  	

   

  	

  Tenant shall

  have the option to renew this lease for one (1) additional period of three

  (3) years at then current market rates. 

  The market rent shall be set by negotiation, however, in any event

  shall not exceed $24.00 per square foot per year.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  1st Floor Storage:

  	

   

  	

  The new

  storage rental rate shall be as follows:

  	

   

  
	

   

  	

   

  	

  June 2002 -

  May 2005 at $800.00 per month.

  	

   

  
	

   

  	

   

  	

  June 2005 -

  May 2007 at $861.54 per month.

  	

   

  
	

   

  	

   

  	

  June 2007 -

  May 2009 at $923.08 per month.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  New Base Years:

  	

   

  	

  Per Sections

  19.1 and 19.3 of this Lease the "Base Year" for each shall be

  changed to 2001 - 2002 and 2002, respectively.

  	

   

  
	

   

  	

   

  	

   

  	

   

  

All other

terms and conditions of the Lease dated May 6, 1997 shall remain in full force

and effect.

 

APPROVED & ACCEPTED:

 

	

  Lessor:

  	

   

  	

  Lessee: 

  	

   

  
	

  Runhill

  Investment Company

  	

  Paulson

  Investment Company

  	 

	

   

  	

   

  	

   

  	

   

  	 

	

  By:

  	

  /s/ Ted E.

  Runstein

  	

  By:

  	

  /s/ Glen Davis

  	 

	

   

  	

   

  	

   

  	

   

  	 

	

  Date:

  	

  8/10/01

  	

  Date:

  	

  8/7/01

  	 

							

 

 

2EMPLOYMENT AGREEMENT

Exhibit

10.11

 

EMPLOYMENT

AGREEMENT

 

This Employment Agreement (“Agreement”) is hereby

entered into between Zomax Incorporated, a Minnesota corporation (the

“Company”) and Anthony Angelini (“Executive”).

 

PREAMBLE

 

Executive has been employed as President and Chief

Operating Officer of Zomax Incorporated since 2000.  The Company desires to continue to have the benefit of

Executive’s experience and loyalty, and Executive has indicated his willingness

to provide his services on the terms and conditions set forth below.

 

AGREEMENT

 

1.             Definitions.

 

The following capitalized terms used in this Agreement

shall be defined as follows:

 

Agreement

shall mean this Agreement between the Company and Executive.

 

Base

Salary shall mean the annual base salary payable to Executive

pursuant to Section 4(a) hereof, and “monthly Base Salary” shall mean the Base

Salary divided by twelve (12).

 

Board

shall mean the Board of Directors of the Company.

 

Cause

shall mean termination of the Executive’s employment with the Company because

of (1) gross misconduct, dishonesty or disloyalty; (2) willful and material

breach of this Agreement by Executive; or (3) conviction or entry of a plea of

guilty or nolo contendere to any felony or to any misdemeanor involving fraud,

misrepresentation or theft.

 

A Change of Control shall be deemed to have

occurred if (1) any “person” (as such term is used in Section 13(d) and 14(d)

of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule

13d-3 under the Exchange Act), directly or indirectly, of securities of the

Company representing 35% or more of the combined voting power (with respect to

the election of directors) of the Company’s then outstanding securities; (2) at

any time after the execution of this Agreement, individuals who as of the date

of the execution of this Agreement constitute the Board (and any new director

whose election to the Board or nomination for election to the Board by the

Company’s stockholders was approved by a vote of at least two-thirds (2/3) of

the directors then still in office) cease for any reason to constitute a

majority of the Board ; (3) the consummation of a merger or consolidation of

the Company with or into any other corporation, other than a merger or

consolidation which would result in the voting securities of the Company

outstanding immediately prior thereto continuing to represent (either by

remaining outstanding or by being converted into voting securities of the

surviving entity) more than 60% of the combined voting power (with respect to

the election of directors) of the securities of the Company or of such

surviving entity outstanding immediately after such merger or consolidation; or

(4) the consummation of a plan of complete liquidation of the Company or of

 

 

an agreement for the sale or disposition by the Company of all or

substantially all of the Company’s business or assets.

 

Change

of Control Payments shall mean any payment (including any

benefit or transfer of property) in the nature of compensation to or for the

benefit of Executive under any arrangement which is partially or entirely

contingent on a Change of Control, or is deemed to be contingent on a Change of

Control for purposes of Section 280G of the Code.  As used in this definition, the term “arrangement” includes any

agreement between Executive and the Company and any and all of the Company’s

salary, bonus, incentive, compensation or benefit plans, programs or

arrangements, and shall include this Agreement.

 

Code

shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

Company

shall mean Zomax Incorporated, a Minnesota corporation, any subsidiaries

thereof, and any successors or assigns, including any Successor.

 

Company

Product means any product, product line or service (including

any component thereof or research to develop information useful in connection

with a product or service) that is being designed, developed, manufactured,

marketed or sold by the Company or with respect to which the Company has

acquired Confidential Information which it intends to use in the design,

development, manufacture, marketing or sale of a product or service.

 

Competitive

Product means any product, product line or service (including

any component thereof or research to develop information useful in connection

with a product or service) that is being designed, developed, manufactured,

marketed or sold by anyone other than the Company and is of the same general

type, performs similar functions, or is used for the same purposes as a Company

Product.

 

Confidential

Information means any information or compilation of

information that Executive learns or develops during the course of his

employment with the Company that derives independent economic value from not

being generally known, or readily ascertainable by proper means, by other

persons who can obtain economic value from its disclosure or use.  It includes but is not limited to trade

secrets, inventions, discoveries, and may relate to such matters as research

and development, manufacturing processes, management systems and techniques and

sales and marketing plans and information.

 

Good

Reason shall mean (1) a substantial reduction in the nature

or status of Executive’s responsibilities hereunder; (2) a reduction by the

Company in the Base Salary of Executive except to the extent permitted by this

Agreement; and (3) failure by the Company to allow Executive to participate to

the full extent in all plans, programs or benefits in accordance with this

Agreement.  Notwithstanding the

foregoing, “Good Reason” shall be deemed to occur only if such event enumerated

in (1) through (3) above has not been corrected by the Company within thirty

days of receipt of notice from Executive of the occurrence of such event, which

notice shall specifically describe such event.

 

Inventions

means any inventions, discoveries, improvements, ideas or works of authorship

(whether patentable or not and including those which may be subject to

copyright protection) generated, conceived, authored or reduced to practice by

Executive alone or in

 

2

 

conjunction with others, during or after working hours, while an

employee of the Company, and that:

 

(i)                                     are

derived in whole or in part from, or use, incorporate or represent any

improvement to any Invention or trade secret of the Company; or

 

(ii)                                  result

from any work Executive performs for the Company; or

 

(iii)                               use

any of the Company’s equipment, supplies, facilities or trade secret

information; or

 

(iv)                              otherwise

relate to the Company’s products or the Company’s present or possible future

research or development.

 

Term

shall mean the term of Executive’s employment under Section 3 hereof.

 

Permanently

Disabled shall mean permanently disabled in accordance with

the disability policy (as defined by the Company’s Long-Term Disability

Insurance Plan) of the Company as in effect on the date of this Agreement and

as evaluated by sufficient documentation including doctors’ statements, etc. as

requested by the Company.

 

Person

shall mean an individual, partnership, corporation, estate or trust or other

entity.

 

Successor

shall be any entity acquiring substantially all of the assets of the Company or

a corporation into which the Company is merged or with which it is

consolidated.

 

2.             Employment and Duties.

 

(a)           General.  The Company hereby agrees to employ

Executive as its President and Chief Operating Officer upon the terms and

conditions set forth in this Agreement and Executive agrees to serve as

President and Chief Operating Officer of the Company.  Executive shall report directly to the Chief Executive Officer of

the Company.  Executive shall perform

the duties and assume the responsibilities and obligations contemplated by his

title of President and Chief Operating Officer and shall perform such other

duties and undertake such other responsibilities and obligations, consistent

with his position, as the Chief Executive Officer shall determine from time to

time.

 

(b)           Exclusive

Services.  The Executive shall (i)

devote his full business time and attention and best efforts to the business

and affairs of the Company and its affiliates, (ii) use his best efforts to

promote and further the interests of the Company, (iii) faithfully and

diligently perform his responsibilities and duties hereunder; and (iv) conduct

himself in a competent and professional manner which reflects positively upon

the Company.

 

(c)           No

Other Employment.  Throughout the

Term, Executive shall not, directly or indirectly, render services to any other

person or organization for which he receives compensation (excluding volunteer

services or outside Board activities with modest time commitments) without the

prior consent of the Chief Executive Officer or otherwise engage in activities

which would interfere significantly with the performance of his duties hereunder.

 

3

 

3.             Term of Employment.

 

(a)                                  Commencement.  This Agreement shall be effective as of

January 1, 2002.

 

(b)                                 Term.  This agreement shall automatically terminate

on each one-year anniversary of the commencement unless renewed by mutual

agreement as provided in 3(c) below.

 

(c)                                  This

agreement will renew automatically each year for the subsequent one-year period

unless notice of non-renewal is given by either party on or before September 30

of each contract year.

 

4.             Compensation and Other Benefits.  Subject to the provisions of this Agreement,

the Company shall pay and provide the following compensation and other benefits

to Executive during the Term as compensation for services rendered hereunder.

 

(a)           Base

Salary.  The Company shall pay to

Executive a Base Salary at the rate of $300,000 per annum, payable in

accordance with the Company’s standard payroll practices.  The Company shall be entitled to deduct or

withhold all taxes and charges which the Company may be required to deduct or

withhold therefrom.  The Base Salary may

be reviewed at any time and may be increased or reduced; provided, however,

that any reduction shall be permitted only if the Company then reduces the base

compensation of its executive employees generally and shall not exceed the

average percentage reduction for all such executive employees.

 

(b)           Incentive

Compensation.  During the term of

this Agreement, Executive will be eligible to earn an annual bonus, normally

consisting of a combination of cash and stock options, based on his performance

and the performance of the Company against a business plan approved by the

Board of Directors.  The terms of the

incentive compensation award will be determined by the Chief Executive Officer

and Board and communicated to Executive no later than February 28 of each

calendar year.

 

(c)           Other Plans.  The Executive shall be entitled to

participate in additional Company stock option plans or other equity plans or

programs, if any, in which executives of the Company are eligible to

participate generally as may be determined from time to time by the Board of

Directors.

 

(d)           Executive

Benefit Plans.  At all times during

the Term, Executive shall, unless prohibited by the Code or other applicable

law, be eligible to participate in pension and welfare plans and programs of

the Company for executive employees, currently existing or subsequently

adopted, including the following:

 

(i)                                     all

qualified benefit plans and programs (e.g. defined contribution, supplemental

retirement and Section 401(k) plans, long-term disability and life insurance

plans and programs);

 

(ii)                                  all

hospitalization and medical plans and programs; and

 

4

 

(iii)                               all

retirement plans and programs.

 

5.                                      Termination

of Employment for Cause; Resignation Without Good Reason; Resignation Not

Following a Change of Control.

 

(a)           Compensation and Benefits.  If Executive’s employment is terminated by

the Company for Cause or if Executive resigns from his employment hereunder

other than for Good Reason or other than within one year after a Change of

Control, then Executive shall be paid through the effective date of termination

as set forth in 5(b) below and shall not be eligible to receive any compensation

or benefits, or to participate in any plans or programs under Section 4 hereof

with respect to future periods after the date of such termination or

resignation except for the right to receive benefits under any compensation or

other plan or program, to the extent vested, in accordance with the terms of

such plan or program and except for benefits provided in accordance with

customary practices of the Company at Executive’s expense (e.g.,

hospitalization and medical insurance).

 

(b)           Date

of Termination.  The date of

termination of Executive’s employment by the Company under this Section 5 shall

be effective immediately after written notice of termination.  The effective date of resignation by

Executive under this Section 5 shall be three (3) months after receipt by the

Company of written notice of resignation.

 

6.                                      Termination

of Employment Without Cause; Resignation for Good Reason; Resignation Following

Change of Control.

 

(a)           Compensation

and Benefits.  If Executive’s

employment is terminated by the Company without Cause prior to the expiration

of the Term; Executive resigns from his employment hereunder for Good Reason;

or if Executive resigns from his employment hereunder for any reason within one

(1) year after a Change of Control, but only if at the time of such resignation

James T. Anderson, the current chief executive officer of the Company, is not

then employed by the Company or the surviving corporation as chief executive

officer or in some other senior executive management position; Executive shall be

entitled to receive the following from the Company:

 

(i)                                     Executive

shall receive from the Company within thirty (30) days after such termination

or resignation a lump sum amount equal to his Base Salary and all unused

vacation allowances as in effect on the effective date of such termination or

resignation.  The Company shall be

entitled to deduct or withhold all taxes and charges which the Company may be

required to deduct or withhold therefrom.

 

(ii)                                  Executive

shall receive from the Company within thirty (30) days after such termination

or resignation an amount equal to Executive’s bonus payment(s) under Section

4(b) above earned for the fiscal year of the Company ending immediately prior

to such termination or resignation or the target amount Executive is eligible

to earn in the current fiscal year, whichever is greater.  The Company shall be entitled to deduct or

withhold all taxes and charges which the Company may be required to deduct or

withhold therefrom.

 

5

 

(iii)                               With

respect to any stock options, SARs, restricted stock awards or performance

share awards granted to Executive and outstanding immediately prior to such

termination or resignation all restrictions on all shares of restricted stock

awards shall lapse immediately, all outstanding options and SARs will become

exercisable immediately, and all performance share objectives shall be deemed

to have been met.

 

(iv)                              Executive

and his family shall be entitled to continued participation in hospital and

medical plans and programs of the Company at the Company’s expense for a

one-year period following such termination or resignation subject to

termination of participation upon Executive becoming entitled to comparable

benefits on subsequent employment.

 

(b)           Date

of Termination or Resignation.  The

date of termination of Executive’s employment by the Company under this Section

6 shall be one (1) month after receipt by Executive of written notice of

termination.  The date of resignation by

Executive for Good Reason under this Section 6 shall be three (3) months after

receipt by the Company of written notice of resignation, provided that the Good

Reason specified in such notice shall not have been corrected by the Company

during such three (3) month period following receipt of written notice of

resignation.

 

(c)           Limitation

on Change of Control Compensation. 

In the event that Executive is a “disqualified individual” within the

meaning of Section 280G of the Code, the parties expressly agree that the

payments described in this Section 6 shall be considered together with all

Change of Control Payments so that, with respect to Executive, all Change of

Control Payments are collectively subject to an overall maximum limit.  Such maximum limit shall be One Dollar ($1.00)

less than the largest amount under which no portion of the Change of Control

Payments is considered a “parachute payment” within the meaning of Section 280G

of the Code.  Accordingly, to the extent

that the Change of Control Payments would be considered a “parachute payment”

with respect to Executive, then the portions of such Change of Control payments

shall be reduced or eliminated in the following order until the remaining

Change of Control Payments with respect to Executive is One Dollar ($1.00) less

than the maximum allowable which would not be considered a “parachute payment”

under the Internal Revenue Code:

 

(i)                                     First,

any cash payment to Executive;

 

(ii)                                  Second,

any Change of Control Payments not described in this Agreement; and

 

(iii)                               Third,

any forgiveness of indebtedness of Executive to the Company.

 

Executive expressly and irrevocably waives any and all rights to

receive any Change of Control payments which would be considered a “parachute

payment” under the Code.

 

6

 

7.             Termination of Employment by

Disability or Death.

 

(a)           Compensation

and Benefits.  If Executive becomes

Permanently Disabled prior to the expiration of the Term, the Company shall be

entitled to terminate Executive’s employment subject to the Company’s normal

policies in such matters as applied to all other salaried employees.  In the event of such termination of

Executive’s employment or termination of Executive’s employment by reason of

the death of Executive prior to the expiration of the Term, the Executive (or

Executive’s estate, as the case may be), shall be entitled to receive from the

Company the following:

 

(i)                                     In

the event of termination after Executive has become Permanently Disabled,

Executive and his family shall be entitled to continue participation in

hospital and medical plans and programs of the Company at the Company’s expense

for the period of said disability or until normal retirement age subject to

rules and practice of the plan(s).

 

(ii)                                  Executive

(or, in the event of his death, Executive’s estate or his designated

beneficiary) shall be entitled to receive benefits under any other Company plan

or program (to the extent Executive is vested) in accordance with the terms of

such plan or program.  Executive shall

be entitled to continued contributions under the Company’s qualified profit

sharing plan 401(k) to the extent permitted in said Plan.

 

(b)           Date

of Termination.  The date of

termination of Executive’s employment under this Section 7 shall be the date Executive

becomes Permanently Disabled as defined in Section 1 of this agreement or the

date of Executive’s death, as the case may be.

 

8.             Legal Fees and Expenses.  The Company shall pay or reimburse Executive

for all reasonable legal fees and expenses incurred by Executive in seeking to

and successfully obtaining or enforcing any right or benefit provided by this

Agreement from or against the Company in a proceeding before a court of

competent jurisdiction.

 

9.             Assignment of Inventions.  Executive agrees to promptly disclose to the

Company in writing all Inventions; and all such Inventions shall be the

exclusive property of the Company and are hereby assigned by Executive to the

Company.  Further, Employee will, at the

Company’s expense, give the Company all assistance it reasonably requires to

perfect, protect, and use its rights to Inventions.  In particular, but without limitation, Executive will sign all

documents, do all things, and supply all information that the Company may deem

necessary or desirable to:

 

(i)                                     transfer

or record the transfer of his entire right, title and interest in Inventions;

and

 

(ii)                                  enable

the Company to obtain patent, copyright or trademark protection for Inventions

anywhere in the world.

 

The obligations of this Section shall continue beyond

the termination of employment with respect to Inventions conceived or made by

Executive during the period of his employment and shall be binding upon

assigns, executors, administrators and other legal representatives.  For

 

7

 

purposes of this Agreement, any Invention relating to the business of

the Company on which Executive files a patent application within six (6) months

after termination of employment with the Company shall be presumed to cover

Inventions conceived by Executive during the term of his employment, subject to

proof to the contrary by good faith, written and duly corroborated records

establishing that such Invention was conceived and made following termination

of employment.

 

NOTICE: 

Pursuant to Minnesota Statutes § 181.78, Executive is hereby notified

that this Section 11 does not apply to any invention for which no equipment,

supplies, facility, or trade secret information of the Company was used and

which was developed entirely on Executive’s own time, and (1) which does not

relate (a) directly to the business of the Company or (b) to the Company’s

actual or demonstrably anticipated research or development, or (2) which does

not result from any work performed by the employee for the Company.

 

10.          Confidential Information.  Executive agrees not to directly or

indirectly use or disclose Confidential Information for the benefit of anyone

other than the Company, either during or after employment, for as long as the

information retains the characteristics of Confidential Information described

in Section 1 above.

 

11.          Return of Documents and Property.  All documents and tangible items provided to

Executive by the Company, or possessed by or created by Executive for use in

connection with his employment, are the property of the Company and shall be

promptly returned to the Company on termination of employment together with all

copies, recordings, abstracts, notes or reproductions of any kind made from or

about the documents and tangible items or the information they contain.

 

12.          Noncompetition.  In consideration of Executive’s rights under

this Agreement, including without limitation Sections 5 through 7 hereof,

Executive agrees that, from and after the Effective Date and continuing until

the one-year anniversary of termination or cessation of Executive’s employment

with the Company, Executive will not, alone or in any capacity with another

legal entity:

 

(i)                                     directly

or indirectly, own any interest in, control, be employed by or associated with,

or render services to (including but not limited to services in research), any

person, entity, or subsidiary, subdivision, division, or joint venture of such

entity in connection with the design, development, manufacture, marketing, or

sale of a Competitive Product that is sold or intended for use or sale in any

geographic area in which the Company actively markets a Company Product or

intends to actively market a Company Product of the same general type or

function;

 

(ii)                                  directly

or indirectly, solicit any of the Company’s present or future employees for the

purpose of hiring them or inducing them to leave their employment with the

Company;

 

(iii)                               directly

or indirectly, solicit, attempt to solicit, interfere, or attempt to interfere

with the Company’s relationship with its customers or potential customers, on

behalf of himself or any other person or entity engaged in

 

8

 

the design, development,

manufacture, marketing, or sale of a Competitive Product; or

 

(iv)                              directly

or indirectly design, develop, manufacture, market, or sell any Competitive

Product that is sold or intended for use or sale in any geographic area in

which the Company actively markets a Company Product or intends to actively market

a Company Product of the same general type or function.

 

13.          Breach of Noncompetition Provisions of

this Agreement.  In

addition to any other relief or remedies afforded by law or in equity, if

Executive breaches Section 12 of this Agreement, Executive agrees that the

Company shall be entitled, as a matter of right, to injunctive relief in any

court of competent jurisdiction plus reasonable attorneys’ fees for securing

such relief.  Executive recognizes and

hereby admits that irreparable damage will result to the Company if he violates

or threatens to violate the terms of Section 12 of this Agreement.  This Section 13 shall not preclude the

granting of any other appropriate relief including, without limitation, money

damages against Executive for breach of Section 12 of this Agreement.

 

14.          Effect of Other Obligations.  It is intended that the obligation of the

parties to perform the terms of this Agreement is unconditional and does not

depend on the performance or non-performance of any terms, duties or

obligations not specifically recited in this Agreement.

 

15.          Binding Agreement.  This Agreement shall be binding upon, and

inure to the benefit of, the parties hereto, any Successor to or assigns of the

Company, and Executive’s heirs and the personal representative of Executive’s

estate.

 

16.          Severability.  If the final determination of a court of

competent jurisdiction declares, after the expiration of the time within which

judicial review (if permitted) of such determination may be perfected, that any

term of provision hereof is invalid or unenforceable, (a) the remaining terms

and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable

term or provision shall be deemed replaced by a term or provision that is valid

and enforceable and that comes closest to expressing the intention of the

invalid or unenforceable term or provision.

 

17.          Amendment; Waiver.  This Agreement may not be modified, amended

or waived in any manner except by an instrument in writing signed by both

parties hereto.  The waiver by either

party of compliance with any provision of this Agreement by the other party

shall not operate or be construed as a waiver of any other provision of this

Agreement, or of any subsequent breach by such party of a provision of this

Agreement.

 

18.          Governing Law.  All matters affecting this Agreement,

including the validity thereof, are to be governed by, interpreted and

construed in accordance with the laws of the State of Minnesota.

 

19.          Notices.  Any notice hereunder by either party to the

other shall be given in writing by personal delivery or certified mail, return

receipt requested.  If addressed to

Executive, the notice shall be delivered or mailed to Executive at the home

address specified in Executive’s employment file, or if addressed to the

Company, the notice shall be delivered or mailed to the Company at its

executive offices to the attention of the Chief Executive Officer.  A notice shall

 

9

 

be deemed given, if by personal delivery, on the date of such delivery

or, if by certified mail, on the date shown on the applicable return receipt.

 

20.          Supersedes Previous Agreements.  This Agreement supersedes all prior or

contemporaneous negotiations, commitments, agreements and writings with respect

to the subject matter hereof, all such other negotiations, commitments,

agreements and writings will have no further force or effect, and the parties

to any such other negotiation, commitment, agreement or writing will have no

further rights or obligations thereunder.

 

21.          Headings; Construction.  The headings of Sections and paragraphs

herein are included solely for convenience of reference and shall not control

the meaning or interpretation of any of the provisions of this Agreement.  This Agreement shall be construed without

regard to any presumption or other rule requiring construction hereof against

the party causing this Agreement to be drafted.

 

22.          Benefit.  Nothing in this Agreement, expressed or

implied, is intended to confer on any person other than the parties hereto or

their respective successors or assigns, any rights, remedies, obligations or

liabilities under or by reason of this Agreement.

 

IN WITNESS WHEREOF, the Company has caused this

Agreement to be signed by its Chief Executive Officer and Chairman of the Board

pursuant to the authority of its Board, and Executive has executed this

Agreement, effective as of December 1, 2001.

 

	

   

  	

  ZOMAX INCORPORATED

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

  Anthony Angelini

  	

  James T.

  Anderson

  
	

  President &

  COO

  	

  Chairman &

  CEO

  
						

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]