Document:

exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”), effective as of February 19, 2007 (“Effective Date”)
is entered by and between Robert Barron (“Executive”) and Kitty Hawk, Inc. (“Company”). As used in
this Agreement, the term Company also includes its parent and affiliates.

     WHEREAS, the Company and Executive wish to enter into an Employment Agreement which replaces and
supercedes any existing contractual arrangement.

     WHEREAS, the Company desires to establish its right to the continued services of the Executive, in
the capacity described below, on the terms and conditions and subject to the rights of termination
hereinafter set forth, and the Executive is willing to accept such employment on such terms and
conditions.

     THEREFORE, in consideration of the mutual agreements hereinafter set forth, the Executive and the
Company have agreed and do hereby agree as follows:

     1. EMPLOYMENT AS Vice President and Chief Operating Officer (COO) for Kitty Hawk Aircargo,
Inc., reporting initially to the President and CEO of Kitty Hawk, Inc.. The Company does hereby
agree to continue to employ Executive as Vice President and COO and the Executive does hereby agree
to accept continued employment with the Company as Vice President and COO on the terms and
conditions set forth herein. Executive shall have such executive, managerial and other duties and
responsibilities as may be assigned to Executive from time to time. The Executive shall use his
best efforts and devote substantially all of his business time (other than absences due to illness
or vacation) to the performance of his duties for the Company. Notwithstanding the above, Executive
shall be permitted, to the extent that such activities do not interfere with performance of
Executive’s duties and responsibilities hereunder, to: (i) manage Executive’s personal, financial
and legal affairs, (ii) to serve on civic or charitable boards or committees, it being expressly
understood and agreed Executive may continue serving on any such boards and/or committees on which
Executive is serving or with which Executive is associated as of the Effective Date as set forth on
Appendix 1 hereto, and (iii) to give lectures and be involved in speaking engagements associated
with Executive’s community service or service to civic or charitable boards or committees.

          (a) PLACE OF PERFORMANCE. Unless relocated, the principal place of employment of Executive shall be
at the Company’s principle executive offices in the Dallas/Fort Worth, Texas metropolitan area.

     2. TERM OF AGREEMENT. The term of Executive’s employment under this Agreement shall
commence on February 19, 2007 (the “Commencement Date”) and shall continue until June 1, 2009 (the
“Term”); provided, that, on June 1, 2009 and on each annual

 

 

anniversary thereafter, the Term and Executive’s employment hereunder shall automatically be
extended for successive one (1) year periods unless either party gives written notice not to extend
the term of this Agreement ninety (90) days in advance of the expiration of the Term or any
extension thereof.

     3. COMPENSATION.

          (a) BASE SALARY. The Company shall pay the Executive, and the Executive agrees to accept
from the Company for payment of his services to the Company, a base salary at the rate of One
Hundred Seventy Thousand Dollars ($170,000) per year (“Base Salary”), during the initial Term,
payable in equal semi-monthly installments or at such other time or times as the Executive and the
Company shall agree. Thereafter, Executive’s Base Salary shall be reviewed on a calendar year
basis, by the Compensation Committee of the Board (the “Committee”), and may be increased as
determined by the Committee and approved by the Board in its sole and absolute discretion. Such
increased Base Salary shall be used for all purposes under this Agreement. Executive’s Base Salary
shall not be decreased during the Term.

          (b) PERFORMANCE BONUS. Pursuant to the terms of any plan then existing, Executive shall be
eligible to receive an annual cash performance bonus based on the achievement of annual performance
goals to be established by the Committee (the “Bonus”). Such Bonus, if any, shall be paid when
annual performance bonuses are customarily paid, but in no event later than 30 days following the
finalization of audited financial statements and filing of the Company’s 10k (the “Payment Date”).

          (c) INCENTIVE COMPENSATION. To the extent that the Company maintains or establishes any
incentive compensation plans applicable to senior executive officers and that are adopted by the
Board of Directors, Executive shall participate in any such plans or programs pursuant to the terms
and conditions contained in such plans.

     4. BENEFITS.

          (a) FRINGE BENEFITS. Executive shall be entitled to participate in any benefit programs
adopted from time to time by the Company for the benefit of its executive officers, and Executive
shall be entitled to receive such other fringe benefits as may be granted to him from time to time
by the Company’s Board of Directors.

          (b) BENEFIT PLANS. Executive shall be entitled to participate in any benefit plans relating
to stock options, stock purchases, pension, thrift, profit sharing, life and disability insurance,
medical coverage, executive medical coverage, education, or other retirement or employee benefits
available to other executive employees of the Company, subject to any and all terms and conditions
contained in such plans.

          (c) VACATION. Executive shall be entitled to the number of weeks of paid vacation per year
that he was eligible for immediately prior to the date of this

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Agreement. Unused vacation may be carried forward from year to year to the extent allowed by the
Company’s regular vacation policy.

     5. BUSINESS EXPENSES. The Company shall reimburse the Executive for any and all necessary,
customary, and usual business related expenses, properly documented in accordance with Company
policies.

     6. CORPORATE RELOCATION. Should the Company relocate its principal executive offices to
a location outside of the Dallas/Fort Worth, Texas, metroplex area, and Executive is required to
relocate to such area, the Company will reimburse the Executive for all of his reasonable and
customary relocation expenses pursuant to the Company’s regular relocation policy then in effect.

     7. CONFIDENTIAL INFORMATION.

          Executive recognizes that by reason of his employment by and service to the Company he will occupy
a position of trust with respect to the business and its employees and technical and other
information of a secret or confidential nature (“Confidential Information”) which is the property
of the Company which the Company hereby agrees to provide Executive and which may also be imparted
to him from time to time in the course of the performance of his duties hereunder. Executive
acknowledges that such information is a valuable and unique asset of the Company and agrees that he
shall not, during or after the Term of this Agreement, directly or indirectly use or disclose any
Confidential Information of the Company to any person, except that Executive may use and disclose
to authorized personnel of the Company such Confidential Information as is reasonably appropriate
in the course of the performance of his duties hereunder. Confidential Information of the Company
shall include all information and knowledge of any nature and in any form relating to the Company
and its subsidiaries and affiliates including but not limited to, business plans; development
projects; computer software and related documentation and materials; designs, practices, processes,
methods, know-how and other facts relating to the business of the Company and its subsidiaries and
its affiliates; advertising, promotions, financial matters, sales and profit figures, employee
hiring, training, evaluations and retention practices and customers or customer lists. Confidential
Information shall not include any information that is or shall become publicly known through no
fault of the Executive and any information received in good faith on a non-confidential basis from
a third party who has the right to disclose such information and who has not received such
information, either directly or indirectly, from the Company. If Executive is required to disclose
Confidential Information by any court or governmental tribunal, Executive shall, to the extent
practical under the circumstances, first give notice to the Company in order that it may have an
opportunity to seek a protective order. The Company and Executive shall cooperate with each other,
should either decide to seek a protective order with all costs and expenses being borne by the
party seeking such order. Executive shall abide by the final order, judgment, or decree of any
court of competent jurisdiction, administration or regulatory body regarding such application for a
protective order.

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     8. TERMINATION OF EXECUTIVE’S EMPLOYMENT.

          (a) DEATH. If the Executive dies while employed by the Company, his employment shall
immediately terminate. Upon Executive’s death, the Company shall pay or provide to Executive’s
estate or his beneficiaries within thirty (30) business days following such death or such other
time set forth herein: (i) his earned, but unpaid Base Salary through the date of his termination
of employment, (ii) any earned, but unpaid Bonus for the year prior to the year of termination of
employment to be paid on the Payment Date with respect to that Bonus, (iii) his earned, but unused
vacation pay to the extent provided for under the Company’s vacation policy; (iv) properly
documented unreimbursed business expenses, and (v) any other benefits in accordance with the
Company’s retirement, insurance, and other applicable benefit programs and plans then in effect (the
“Accrued Benefits”). If Executive’s death occurs during a year, Executive’s beneficiaries or estate
shall also be paid on the Payment Date, a pro-rated Bonus, if any, for the year equal to the
product of (A) and (B) where (A) is the amount payable to Executive as a Bonus for such year had he
been employed through the last day of the year, and (B) is a fraction, the numerator of which is
the number of days the Executive was employed by the Company during such year and the denominator
is 365 (“Pro-Rated Bonus”).

          (b) DISABILITY. If, as a result of Executive’s mental or physical incapacity, Executive
shall be substantially unable to perform the services for the Company contemplated by this
Agreement for sixty (60) consecutive days or ninety (90) days in any twelve (12) month period
(“Disability”), Executive’s employment may be terminated by the Company for Disability. During any
period prior to such termination during which Executive is absent from the full-time performance of
his duties with the Company due to Disability, the Company shall continue to pay Executive the
amounts contemplated under this Agreement; provided, that, such payments made to the Executive
shall be reduced by amounts received from disability insurance obtained or provided by the
Company. Subsequent to the termination provided for in this Section 8(b), the Company shall pay
or provide Executive the Accrued Benefits at the times set forth in Section 8(a) above and a
Pro-Rated Bonus.

          (c) TERMINATION BY EXECUTIVE WITHOUT GOOD REASON OR DUE TO EXECUTIVE NOT RENEWING THE TERM.
Executive may terminate his employment without Good Reason (as defined below) at any time prior to
expiration of the Term. For purposes of this clause (c), if Executive provides the notice not to
renew the Term, such termination shall be treated in the same fashion as a termination by Executive
without Good Reason. Upon such termination of employment, the Company shall pay Executive his
Accrued Benefits at the times set forth in 8(a) above; provided, however, the benefits described in
8(a)(ii) shall only be paid if such termination occurs after the finalization of the Company’s
audited financial statements for the year prior to the year of termination.

          (d) TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate Executive’s employment
under this Agreement for “Cause.” For the purposes of this Agreement, the term “Cause” shall mean
Executive’s:

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          (i) conviction by a court of competent jurisdiction of a felony or serious misdemeanor
involving moral turpitude;

          (ii) willful disregard of any written directive of the Company, provided the written directive is
not inconsistent with the Certificate of Incorporation or Bylaws of the Company or applicable law;

          (iii) breach of his or her fiduciary duty or duty of loyalty under circumstances that involve
personal profit;

          (iv) breach of a material term of this employment agreement; or

          (v) neglect of his
duties that has a material adverse effect on the Company.

     In the event of termination for Cause, the Company shall pay Executive his Accrued Benefits
excluding benefits described in Section 8(a)(ii) at the times set forth in 8(a) above.

          (e) TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company shall have the right to
terminate this Agreement prior to the expiration of the Term, at any time, without Cause. In the
event the Company shall so elect to terminate this Agreement, the Executive shall receive
compensation pursuant to the provisions of Section 10 or Section 14 of this Agreement, as the case
may be.

          (f) TERMINATION BY THE EXECUTIVE FOR GOOD REASON. The Executive shall have the right to
terminate this Agreement for Good Reason. In the event Executive so elects to terminate this
Agreement, the Executive shall receive compensation pursuant to the provisions of Section 10 or
Section 14 of this Agreement, as the case may be. For purposes of this Agreement, “Good Reason”
shall mean the occurrence, without the Executive’s prior written consent, of any one or more of the
following events:

          (i) The Agreement; or
Company’s material breach of any of the provisions of this Agreement; or

          (ii) A reduction in Executive’s Base Salary; or

              (iii) The relocation of the Company’s principal executive offices to a location outside of the
Dallas/Fort Worth metropolitan area without providing the Executive with relocation expenses in
accordance with Section 6 of this Agreement; or

              (iv) The failure of the Company to provide in all material respects the indemnification set forth
in this Agreement and the Company’s by-laws.

The Executive agrees to provide the Company thirty (30) days’ prior written notice of any
termination for Good Reason, during which 30-day period the Company shall have the right

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to cure, if curable, the circumstances giving rise to the Good Reason stated in such notice.

          (g) Following a termination governed by this Section 8, except as specifically provided in this
Agreement, the Executive shall not be entitled to any other compensation or benefits, except as may
be separately negotiated by the parties and approved by the Board of Directors of the Company in
writing.

     9. TERMINATION PROCEDURE. Any termination of Executive’s employment by the Company or by
Executive during the Term (other than termination pursuant to Section 8(a)) shall be communicated
by written Notice of Termination to the other party hereto in accordance with Section 15. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the
specific termination provision in this Agreement relied upon.

     10. COMPENSATION UPON TERMINATION BY THE COMPANY OTHER THAN FOR CAUSE OR BY THE EXECUTIVE
FOR GOOD REASON. If the Executive’s employment shall be terminated (i) by act of the Company other
than for Cause, or (ii) by the Executive for Good Reason, the Executive shall be entitled to the
following benefits:

          (a) the Accrued Benefits which shall be paid at the times set forth in Section 8(a) above
and the Pro-Rated Bonus.

          (b) Executive shall be paid a severance amount in 12 equal semi-monthly installments, which
in the aggregate equals fifty percent (50%) of Executive’s annual rate of Base Salary in effect on
the date of termination (not taking into account any reductions in Base Salary not agreed to by
Executive in writing) (the “Severance Payment”).

          (c) Notwithstanding the terms and conditions of the 2003 Long-Term Equity Incentive Plan or
any agreements entered into thereunder and any other plan or program which may be in effect from
time to time (and for the purpose of this Agreement any such plans and agreements will be deemed to
be amended to reflect the foregoing), with respect to Executive’s initial Incentive Stock Option
Agreement under the 2003 Equity Incentive Plan, if any, Executive’s service with the Company will
be deemed to continue for 12 months following his separation date for purposes of vesting such that
the portion of the option that would have vested during such 12-month period will become
immediately vested and exercisable as of the separation date. With respect to any other stock
options granted to Executive from time to time, all such stock options, if any, will become
immediately 100% vested and, if applicable, exercisable upon Executive’s separation.

          (d) The Company shall continue to provide the Executive with life and disability insurance,
medical, vision and dental coverage, executive medical and other health and welfare benefits for 6
months following Executive’s separation of service or until Executive becomes an eligible
participant in substantially similar or better heath and welfare plans which do not exclude
pre-existing conditions which were covered by the Company’s plans, whichever is earlier.

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          (e) Following a termination governed by this Section 10, except as specifically provided in
this Agreement, the Executive shall not be entitled to any other compensation or benefits, except
as may be separately negotiated by the parties and approved by the Board of Directors of the
Company in writing.

     11. COMPENSATION UPON THE COMPANY’S NOT RENEWING THE AGREEMENT PURSUANT TO PARAGRAPH 2. If, pursuant
to Section 2, the Executive’s employment is terminated as a result of the Company’s providing
written notice of intent not to renew, the Executive shall be entitled to the following benefits:

          (a) The Accrued Benefits which shall be paid at the time set forth in Section 8(a) above and
the Pro-Rated Bonus.

          (b) The Severance Payment; provided, that, such Severance Payment shall be offset and reduced
by remuneration earned by Executive during such 6 month Severance Payment period whether as an
employee, consultant, advisor, contractor, partner, agent or in another similar capacity.

          (c) Notwithstanding the terms and conditions of the Company’s 2003 Equity Incentive Plan or
any agreements entered into thereunder and any other plan or program which may be in effect from
time to time (and for purposes of this Agreement any such plans and agreements will be deemed to be
amended to reflect the foregoing), for purposes of vesting of any stock options, Executive’s
service with the Company will be deemed to continue for 12 months following his separation date
such that upon such separation date, all stock options that would have vested during such 12-month
period shall immediately vest as of the separation date. Exercise of any vested stock options or
other vested equity awards (“Awards”) will be pursuant to terms of such plans upon termination of
service, provided, however, if within 90 days following the termination of service, Executive is
restricted from exercising any Awards as a result of any Company or Securities Exchange Commission
imposed black-out periods, the number of days in the black-out period shall be added to the
exercise period.

          (d) The Company shall continue to provide the Executive with life and disability insurance,
medical, vision and dental coverage, executive medical and other health and welfare benefits for 6
months following Executive’s separation from service or until Executive becomes an eligible
participant in substantially similar or better heath and welfare plans which do not exclude
pre-existing conditions which were covered by the Company’s plans, whichever is earlier.

          (e) Executive shall be paid the Severance Payment in the manner set forth in Section 10(b) above.

          (f) Following a termination governed by this Section 11, except as specifically
provided in this Agreement, the Executive shall not be entitled to any other

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compensation or benefits, except as may be separately negotiated by the parties and approved
by the Board of Directors of the Company in writing.

     12. NON-COMPETITION PROVISIONS.

          (a) RIGHT TO COMPANY MATERIALS. Executive agrees that all styles, designs, lists,
materials, books, files, reports, correspondence, records, electronically stored data or software
and other documents and all Confidential Information (“Company Materials”) used, prepared, or made
available to Executive, shall be and shall remain the property of the Company. Upon the termination
of employment or the expiration of this Agreement, all Company Materials and all other property of
the Company shall be returned immediately to the Company, and Executive shall not make or retain
any copies of Company Materials or its property following his termination of employment.

          (b) ANTI-SOLICITATION. Executive promises and agrees that during the Term and for the
twelve (12) month period commencing on the termination of his employment (the “Restricted
Period”), he will not influence or attempt to influence customers or suppliers of the Company or
any of its present or future subsidiaries or affiliates, either directly or indirectly, to divert
their business to any individual, partnership, firm, corporation or other entity then in
competition with the business of the Company, or any subsidiary or affiliate of the Company.

          (c) NON-COMPETITION. Executive promises and agrees that during the Restricted Period, he
will not within the United States, without the prior written consent of the Company, directly or
indirectly, become interested in any capacity (whether as proprietor, director, partner, employee,
agent, independent contractor, consultant, trustee or in any other capacity) or be paid by or
otherwise receive compensation or consideration from any bulk air cargo or bulk air or airport to
airport ground freight business that is competitive with the specific products or services sold or
maintained by the Company. This shall not prevent Executive from owning securities in any such
competitive business (but without otherwise participating in the activities of such enterprise) if
(i) such securities are listed on any national or regional securities exchange or have been
registered under Section 12(g) of the Securities Exchange Act of 1934, and (ii) the Executive does
not beneficially own (as defined by Rule 13d-3 promulgated under the Securities Exchange Act of
1934) in excess of 5% of the outstanding capital stock of such enterprise.

          (d) SOLICITING EMPLOYEES. During the Restricted Period commencing on the
termination of his employment, Executive promises and agrees that he will not directly or
indirectly solicit or engage in any of the Company’s employees or former employees who worked for
the Company at any time during the six (6) months preceding the termination of Executive’s
employment, to work for any business, individual, partnership, firm, corporation, or other entity
then in competition with the Company or any subsidiary or affiliate of the Company.

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     13. NON-DISPARAGEMENT. The Executive agrees that subsequent to
Executive’s employment hereunder, the Executive will refrain from initiating or engaging in any
communication with any then current or former employee, officer, director, shareholder, customer,
vendor or competitor of Company or any third party other than Executive’s spouse or legal counsel,
which could reasonably be interpreted as derogatory or disparaging to the reputation of the Company
and its business practices, employees, officers, directors and agents.

     14. CHANGE IN CONTROL.

          (a) For purposes of this Agreement, “Change in Control” shall mean: (i) the consummation of
a merger, consolidation, share exchange or any other corporate transaction involving the
Company, as a result of which, the members of the Board, elected by the shareholders of the Company
immediately prior to such transaction fail to constitute at least a majority of the Board of
Directors of the surviving entity resulting from such transaction, or (ii) a sale of all or
substantially all of the assets of the Company to another corporation, individual or entity, as a
result of which, the members of the Board, elected by the shareholders of the Company immediately
prior to such transaction fail to constitute at least a majority of the Board of Directors of the
entity purchasing the assets of the Company; or (iii) any “person” (as such term is defined in
Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and as used in Sections
I3(d)(3) and 14(d)(2) of the Exchange Act) is or becomes, after the Commencement Date a “beneficial
owner” (as defined in Rule 13d3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 40% or more (a “40% Shareholder”) of the combined voting
power of the Company’s then outstanding securities eligible to vote for the election of the Board
(the “Company Voting Securities”); provided, however, that an event described in this
paragraph (iii) shall not be deemed to be a Change in Control if any of following becomes such a
beneficial owner: (A) the Company or any majority-owned subsidiary (provided, that this exclusion
applies solely to the ownership levels of the Company or the majority-owned subsidiary), (B) any
employee benefit plan of the Company or any of its majority-owned subsidiaries, (C) any entity
holding voting securities of the Company for or pursuant to the terms of any such plan or (D)
Everest Capital, Resurgence Asset Management LLC or Stockton LLC or any of their affiliates.

          (b) Upon a Change in Control, the Term of this Agreement shall continue for the longer of
(i) the period remaining in the Term or (ii) twelve months. Upon a Change of Control, the 12 month
period immediately following such Change of Control shall be deemed the “Change in Control Period”.
Following the expiration of the Term (as it may be extended pursuant to this paragraph), the
Agreement shall renew in accordance with Section 2 of the Agreement unless either party gives
written notice not to extend pursuant to Section 2.

          (c) (i) If Executive terminates his employment for Good Reason during the Change in Control Period;
(ii) if Executive’s employment is terminated by the Company without Cause during the Change in
Control Period or (iii) if (A) Executive’s employment is

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terminated by the Company without Cause 90 days prior to a definitive purchase agreement that
results in a Change in Control and (B) Executive reasonably demonstrates that such termination was
at the request of a third party who had taken steps reasonably calculated to effect a Change in
Control and (C) a Change in Control involving such third party (or a party competing with such
third party to effectuate a Change in Control) does occur, then Executive shall be entitled to the
following benefits:

          (i) the Accrued Benefits and the Pro-Rated Bonus at the times set forth in 8(a) above.

          (ii) A lump sum cash payment equal to two (2) times the Severance Payment.

          (iii) The Company shall continue to provide the Executive with life and disability insurance,
medical, vision and dental coverage, executive medical and other health and welfare benefits for 6
months following his separation from employment or until Executive becomes an eligible participant
in substantially similar or better heath and welfare plans which do not exclude pre-existing
conditions which were covered by the Company’s plans, whichever is earlier.

          (iv) Following a termination governed by this Section 14, except as specifically provided in this
Agreement, the Executive shall not be entitled to any other compensation or benefits, except as
may be separately negotiated by the parties and approved by the Board of Directors of the Company
in writing.

          (v) Notwithstanding the terms and conditions of the Company’s 2003 Equity Incentive Plan or any
agreements entered into thereunder and any other plan or program which may be in effect from time
to time (and for the puiposes of this Agreement any such plans and agreements will be deemed to be
amended to reflect the foregoing), all Awards, if any, will become immediately 100% vested and, if
applicable, exercisable upon such separation. Executive will have one year from his separation date
in which to exercise vested Awards.

     15. NOTICES. All notices and other communications under this Agreement shall be in writing and
shall be given by hand delivery, facsimile, first class mail, certified or registered with return
receipt requested, or express mail and shall be deemed to have been duly given three (3) days after
mailing or twenty-four (24) hours after transmission of a facsimile to the respective persons named
below:

	 	 	 	 	 
	 

	 	If to Company:
	 	Kitty Hawk, Inc.
	 

	 	 	 	Attn: Chief Executive Officer
	 

	 	 	 	With a copy to: General Counsel
	 

	 	 	 	1515 W. 20th Street, P.O. Box 612787
	 

	 	 	 	DFW International Airport, TX 75261

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	 	With a copy to:
	 	Garrett DeVries, Esq.
	 

	 	 	 	Haynes and Boone, LLP
	 

	 	 	 	901 Main Street, Suite 3100
	 

	 	 	 	Dallas, Texas 75202-3789
	 
	 	 	 	 
	 

	 	If to Executive:
	 	Robert Barron
	 

	 	 	 	4134 Harvestwood Drive
	 

	 	 	 	Grapevine, TX 76051
	 
	 	 	 	 
	 

	 	With a copy to:
	 	 

	 

	 	 	 	 

	 

	 	 	 	 

     Either party may change such party’s address for notices by written notice duly given pursuant
hereto.

     16. TERMINATION OF PRIOR AGREEMENTS. Except as provided for herein, this Agreement terminates
and supersedes any and all prior agreements and understandings between the parties with respect to
employment or with respect to the compensation of the Executive by the Company from and after the
Effective Date.

     17. ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and neither of the
parties hereto shall, without the consent of the other, assign or transfer this Agreement or any
rights or obligations hereunder; provided that, in the event of the merger, consolidation, transfer
or sale of all or substantially all of the assets of the Company with or to any other individual or
entity, this Agreement shall, subject to the express provisions hereof, be binding upon and inure
to the benefit of Executive and such successor and such successor shall discharge and perform all
the promises, covenants, duties, and obligations of the Company hereunder.

     18. GOVERNING LAW. This Agreement and the legal relations thus created between the parties
hereto shall be governed by and construed under and in accordance with the laws of the State of
Texas. Executive hereby agrees to exclusive venue in the courts of Tarrant County, Texas.

     19. RESOLUTION OF DIFFERENCES; BREACH OF AGREEMENT. The parties shall use good faith
efforts to resolve any controversy or claim arising out of, or relating to this Agreement or the
breach thereof, first in accordance with the Company’s internal review procedures. If despite their
good faith efforts, the parties are unable to resolve such controversy or claim through the
Company’s internal review procedures, then such controversy or claim shall be resolved by binding
arbitration in Dallas, Texas in accordance with the rules and procedures of the Employment Dispute
Resolution Rules of the American Arbitration Association then in effect. The decision of the
arbitrator shall be final and binding on both parties, and any court of competent jurisdiction may
enter judgment upon the award. The prevailing party in such action shall be entitled to recoup
their costs and attorneys fees

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from the opposing party. This paragraph shall apply to all controversies, disputes or claims
arising out of or relating to this Agreement, with the sole exception of controversies, disputes or
claims under paragraphs 7, 12 and 13, whereby the Company or Executive, in addition to and not in
lieu of any remedies either may have, may seek equitable and legal relief from any court of
competent jurisdiction for any breach of said paragraphs.

     20. ENTIRE AGREEMENT; HEADINGS. This Agreement embodies the entire agreement of the parties
respecting the matters within its scope and may be modified only in writing. Section headings in
this Agreement are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

     21. WAIVER; MODIFICATION. Failure to insist upon strict compliance with any of the terms,
covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition,
nor shall any waiver or relinquishment of, or failure to insist upon strict compliance with, any
right or power hereunder at any one or more times be deemed a waiver or relinquishment of such
right or power at any other time or times. This Agreement shall not be modified in any respect
except by a writing executed by each party hereto.

     22. SEVERABILITY. In the event that a court of competent jurisdiction
determines that any portion of this Agreement is in violation of any statute or public policy, only
the portions of this Agreement that violate such statute or public policy shall be stricken. All
portions of this Agreement that do not violate any statute or public policy shall continue in full
force and effect. Further, any court order striking any portion of is Agreement shall modify the
stricken terms as narrowly as possible to give as much effect as possible to the intentions of the
parties under this Agreement.

     23. INDEMNIFICATION. The Company shall indemnify and hold Executive harmless to the maximum
extent permitted by law and consistent with the Company’s Articles of Incorporation and Bylaws of
the Company; provided however, that nothing herein shall prevent the Company from amending its
Articles of Incorporation or Bylaws; provided, however notwithstanding any such
amendment, Executive shall have the right to indemnification which is no less favorable
than any other comparable officer of the Company. The Company’s obligations under this Section 23
shall survive the termination of this Agreement and Executive’s employment for the maximum period
permitted by law.

     24. COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and the same instrument.

     25. MITIGATION. Executive shall not be required to mitigate amounts payable under this
Agreement by seeking other employment or otherwise, and, except as otherwise provided in Section
10, 11 and 14 of this Agreement, there shall be no offset against amounts or benefits due
Executive under this Agreement on account of subsequent employment and/or eligibility for benefits.

12

 

     26. SURVIVAL. The representations, warranties, agreements, covenants, obligations and other
provisions in paragraphs 7, 12, 13, and 15 through 25 shall survive any termination of this
Agreement or the employment of Executive with Company, in each case, according to their intended
terms and temporal limitations, if any.

13

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized representative, and the Executive has hereunto signed this Agreement, as of the date
first above written.

	 	 	 	 	 
	Kitty Hawk, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Robert W. Zoller, Jr.	 	 
	 

	 	 

Robert W. Zoller, Jr.
President and Chief Executive Officer
	 	 
	 
	 	 	 	 
	Executive	 	 
	 
	 	 	 	 
	/s/ Robert Barron	 	2/21/07
	 	 	 
	Robert Barron	 	Date

14exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is effective March 1, 2007 (“Effective Date”),
and is between Intervoice, Inc., a Texas corporation (“Intervoice”), and Insert Name (the
“Executive”).

1. Definitions. As used in this Agreement, the following terms have the following
meanings:

     (a) “Affiliate” means, with respect to any entity, any other corporation, organization,
association, partnership, sole proprietorship, or other type of entity, whether incorporated or
unincorporated, directly or indirectly controlling or controlled by or under direct or indirect
common control with such entity.

     (b) “Board” means the Board of Directors of Intervoice.

     (c) “Cause” means a finding by the Board of acts or omissions (whether occurring during or
prior to the term of this Agreement) constituting (i) a breach of duty by the Executive in the
course of the Executive’s employment involving fraud, acts of dishonesty (other than inadvertent
acts or omissions), disloyalty, or moral turpitude; (ii) conduct by the Executive that is
materially detrimental to Intervoice, monetarily or otherwise, or reflects unfavorably on
Intervoice or the Executive to such an extent that Intervoice’s best interests reasonably require
the termination of the Executive’s employment; (iii) acts or omissions of the Executive materially
in violation of the Executive’s obligations under this Agreement, any prior employment agreement
with Intervoice, or at law; (iv) the Executive’s violation of or subversion of Intervoice’s
policies concerning equal employment opportunity, including engaging in sexually or otherwise
harassing conduct; (v) the Executive’s repeated insubordination; (vi) the Executive’s failure to
comply with or enforce personnel policies of Intervoice or its Affiliates; (vii) the Executive’s
failure to devote full working time and best efforts to the performance of the Executive’s
responsibilities to Intervoice or its Affiliates; or (viii) the Executive’s conviction of, or entry
of a plea agreement or consent decree or similar arrangement with respect to, a felony, other
serious criminal offense, or any violation of federal or state securities laws.

     (d) (d) “Competitor” means any person or entity that carries on business activities in
competition with the activities of Intervoice or any Affiliate of Intervoice, including but not
limited to (i) Genesys, Avaya, Nortel, Cisco, Envox, Interactive Intelligence, IT Unity,
Logica/CMG, Tecnomen, Openwave, Convergys, West, Tell-Me, Comverse Technology, Huawei, Lucent
Technologies, Aspect, Alcatel, BeVocal, Audium, NetbyTel, Syntellect, TuVox, Viecore, Nuance, BBN,
and Vocalocity, or, if those corporate names are not formally correct, the businesses commonly
referred to by those names; and (ii) the successors to, assigns of, and Affiliates of the persons
or entities described in (i).

Employment Agreement — Page 1

 

 

     (e) “Corporate Change” means (i) the dissolution or liquidation of Intervoice; (ii) a
reorganization, merger, or consolidation of Intervoice with one or more corporations (other than a
merger or consolidation effecting a reincorporation of Intervoice in another state or any other
merger or consolidation in which the shareholders of the surviving corporation and their
proportionate interests therein immediately after the merger or consolidation are substantially
identical to the shareholders of Intervoice and their proportionate interests therein immediately
prior to the merger or consolidation) (collectively, a “Corporate Change Merger”); (iii) the sale
of all or substantially all of the assets of Intervoice; or (iv) the occurrence of a Change in
Control. A “Change in Control” shall be deemed to have occurred if (i) individuals who were
directors of Intervoice immediately prior to a Control Transaction shall cease, within 18 months of
such Control Transaction, to constitute a majority of the Board of Directors of Intervoice (or of
the Board of Directors of any successor to Intervoice or to a company which has acquired all or
substantially all its assets) other than by reason of an increase in the size of the membership of
the applicable Board that is approved by at least a majority of the individuals who were directors
of Intervoice immediately prior to such Control Transaction or (ii) any entity, person, or Group
acquires shares of Intervoice in a transaction or series of transactions that result in such
entity, person, or Group directly or indirectly owning beneficially 50% or more of the outstanding
shares of Common Stock. As used herein, “Control Transaction” means (i) any tender offer for or
acquisition of capital stock of Intervoice pursuant to which any person, entity, or Group directly
or indirectly acquires beneficial ownership of 20% or more of the outstanding shares of Common
Stock; (ii) any Corporate Change Merger of Intervoice; (iii) any contested election of directors of
Intervoice; or (iv) any combination of the foregoing, any one of which results in a change in
voting power sufficient to elect a majority of the Board of Directors of Intervoice. As used
herein, “Group” means persons who act “in concert” as described in Sections 13(d)(3) and/or
14(d)(2) of the Securities Exchange Act of 1934, as amended.

     (f) “Confidential Information” means, without limitation, all documents or information, in
whatever form or medium, concerning or evidencing sales; costs; pricing; strategies; forecasts and
long range plans; financial and tax information; personnel information; business, marketing, and
operational projections, plans, and opportunities; and customer, vendor, and supplier information;
but excluding any such information that is or becomes generally available to the public other than
as a result of any breach of this Agreement or other unauthorized disclosure.

     (g) “Employment Termination Date” means the effective date of termination of the Executive’s
employment as established under Paragraph 6(f).

     (h) “Inability to Perform” means and shall be deemed to have occurred if the Executive has
been determined under Intervoice’s long-term disability plan to be eligible for long-term
disability benefits. In the absence of the Executive’s participation in such plan, “Inability to
Perform” means a finding by the Board that the Executive is, despite any reasonable accommodation
required by law, unable to perform the essential functions of the Executive’s position because of
an illness or injury for (i) 60% or more of

Employment Agreement — Page 2

 

 

the normal working days during six consecutive calendar months or (ii) 40% or more of the
normal working days during 12 consecutive calendar months.

     (i) “Noncompetition Area” means the following geographic areas: (i) any foreign country in
which Intervoice has sold or installed its products or systems or has definitive plans to sell or
install its products at any time prior to or at the time of the Employment Termination Date; and
(ii) the United States of America.

     (j) “Restricted Activities Period” means the 12-month period following the end of the
Executive’s employment for any reason except that with respect to Paragraph 9(b), the term
“Restricted Activities Period” means the 24-month period following the end of the Executive’s
employment for any reason; provided, however, that in the event of a breach by the Executive of any
duties owed by the Executive during the Restricted Activities Period, then the length of the
Restricted Activities Period shall be extended in an amount of time equal to the length of time in
which the Executive’s breach has occurred.

     (k) “Work Product” means all ideas, works of authorship, inventions, and other creations,
whether or not patentable, copyrightable, or subject to other intellectual-property protection,
that are made, conceived, developed, or worked on in whole or in part by the Executive while
employed by Intervoice and/or any of its Affiliates, that relate in any manner whatsoever to the
business, existing or proposed, of Intervoice and/or any of its Affiliates, or any other business
or research or development effort in which Intervoice and/or any of its Affiliates engages during
the Executive’s employment. Work Product includes any material previously conceived, made,
developed, or worked on during the Executive’s employment with Intervoice prior to the effective
date of this Agreement.

2. Employment. Intervoice agrees to continue to employ the Executive, and the Executive
agrees [to continue to] be employed, for the period set forth in Paragraph 3, in the position and
with the duties and responsibilities set forth in Paragraph 4, and upon the other terms and
conditions set out in this Agreement.

3. Term.

     (a) Initial Term and Automatic Extension. The Executive’s employment as provided in
Paragraph 2 shall be for an initial term of two years, commencing on the Effective Date (the
“Employment Term”), unless sooner terminated as provided in this Agreement. Subject to earlier
termination as provided in this Agreement, the initial term of this Agreement shall be
automatically extended for one additional year unless either the Executive or Intervoice gives
written notice to the other three months or more prior to the end of the second year of the initial
term. In the event of such an automatic extension, the additional year shall also be part of the
Employment Term.

     (b) Automatic Extension Following Corporate Change. In the event that a Corporate
Change occurs and that upon the effective date of the Corporate Change, the

Employment Agreement — Page 3

 

 

Executive has less than one year remaining in the Employment Term, the Employment Term shall
be automatically extended to be effective through the date that is one year following the effective
date of the Corporate Change; provided, however, that this provision shall not be applied in
conjunction with the automatic renewal provision set out in Paragraph 3(a) in a way that causes the
Employment Term to extend for greater than one year following the effective date of the Corporate
Change. Any period extended pursuant to this Paragraph 3(b) shall also be a part of the Employment
Term.

     (c) Expiration of Employment Term. The Executive’s employment will end upon the
expiration of the Employment Term. The ending of the Executive’s employment as a result of the
expiration of the Employment Term shall not constitute a termination of employment by either party
under this Agreement or invoke any of the obligations of Intervoice that arise under this Agreement
as a result of a termination of employment

4. Position and Duties.

     (a) During the Employment Term, the Executive shall serve as the Senior Vice President Insert
Title of Intervoice. In such capacity, the Executive shall report directly to the Company’s Chief
Insert Title Officer and, subject to the authority of the Company’s Chief Executive Officer and
Board of Directors, shall have such powers, functions, duties, and responsibilities as may from
time to time be prescribed by the Company’s Chief Insert Title Officer and/or Board of Directors,
provided that such powers, functions, duties, and responsibilities are reasonable and customary for
a person serving in the same or similar capacity of an enterprise comparable to Intervoice.

     (b) During the Employment Term, the Executive shall devote the Executive’s full time, skill,
and attention and best efforts to the business and affairs of Intervoice to the extent necessary to
discharge fully, faithfully, and efficiently the duties and responsibilities delegated and assigned
to the Executive in or pursuant to this Agreement, except for usual, ordinary, and customary
periods of vacation, and absence due to illness or other disability.

     (c) In connection with the Executive’s employment by Intervoice under this Agreement, the
Executive shall be based at the principal executive offices of Intervoice in Dallas, Texas, or with
CEO approval at any other place where the principal executive offices of Intervoice may be located
during the Employment Term. The Executive also will engage in such travel as the performance of
the Executive’s duties in the business of Intervoice may require.

     (d) All services that the Executive may render to Intervoice or any of its Affiliates in any
capacity during the Employment Term shall be deemed to be services required by this Agreement and
the consideration for such services is that provided for in this Agreement.

Employment Agreement — Page 4

 

 

     (e) The Executive hereby acknowledges having read and becoming familiar with Intervoice’s
Business Ethics Policy and Code of Conduct and being in full compliance with all of the provisions
thereof, and commits to continue to comply with all such provisions, and any amendments thereto,
during the Employment Term.

5. Compensation and Related Matters.

     (a) Base Salary. During the Employment Term, Intervoice shall pay to the Executive
for the Executive’s services under this Agreement an annual base salary (“Base Salary”). The Base
Salary on the effective date of this Agreement shall be at least Insert Salary. The Base Salary is
subject to adjustment at the discretion of the Board, but in no event shall Intervoice pay the
Executive a Base Salary less than that set forth above. The Base Salary shall be payable in
installments in accordance with the general payroll practices of Intervoice, or as otherwise
mutually agreed upon.

     (b) Annual Incentives. During the Employment Term, the Executive will participate in
Intervoice’s annual incentive bonus program(s) applicable to the Executive’s position, as may be
adopted by Intervoice from time to time and in accordance with the terms of such program(s). The
parties agree that the provisions of this Paragraph 5(b) are exclusive and supersede the terms of
any other agreement or provision relating to annual incentive compensation to be provided to the
Executive by Intervoice.

     (c) Long-term Incentives. During the Employment Term, the Executive will participate
in Intervoice’s long-term incentive plan(s) applicable to the Executive’s position, in accordance
with the terms of such plan(s).

     (d) Employee Benefits. During the Employment Term, the Executive shall be entitled to
participate in all employee benefit plans, programs, and arrangements that are generally made
available by Intervoice to its senior executives, including without limitation Intervoice’s life
insurance, long-term disability, and health plans. The Executive agrees to cooperate and
participate in any medical or physical examinations as may be required by any insurance company or
plan administrator in connection with the applications for such life, disability, and health
insurance policies or plans.

     (e) Expenses. The Executive shall be entitled to receive reimbursement for all
reasonable expenses incurred by the Executive in performing the Executive’s duties and
responsibilities under this Agreement, consistent with Intervoice’s policies or practices for
reimbursement of expenses incurred by Intervoice senior executives.

     (f) Vacations and Other Time Off. During the Employment Term, the Executive shall be
eligible for vacation, sick time, and other paid and unpaid time off in accordance with the
policies and practices of Intervoice. The Executive agrees to use allotted vacation and other paid
time off at such times that are (i) consistent with the proper performance of the Executive’s
duties and responsibilities and (ii) mutually convenient for Intervoice and the Executive.

Employment Agreement — Page 5

 

 

6. Termination of Employment.

     (a) Death. The Executive’s employment shall terminate automatically upon the
Executive’s death.

     (b) Inability to Perform. Intervoice may terminate the Executive’s employment for
Inability to Perform.

     (c) Termination by Intervoice for Cause. Intervoice may terminate the Executive’s
employment for Cause by providing the Executive with a Notice of Termination as set out in
Paragraph 6(e). To exercise its right to terminate the Executive’s employment pursuant to
provisions (vi) or (vii) of the definition of Cause, however, Intervoice must first provide the
Executive with 30 days’ time to correct the circumstances or events that Intervoice contends give
rise to the existence of Cause under those provisions.

     (d) Termination by Executive; Termination by Intervoice Without Cause. Either
Intervoice or the Executive, as applicable, may terminate the Executive’s employment without Cause
upon at least 30 days’ prior written notice to the other party.

     (e) Notice of Termination. Any termination of the Executive’s employment by
Intervoice or by the Executive (other than a termination pursuant to Paragraph 6(a)) shall be
communicated by a Notice of Termination. A “Notice of Termination” is a written notice that must
(i) indicate the specific termination provision in this Agreement relied upon; (ii) in the case of
a termination for Inability to Perform or Cause set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision invoked; and (iii) if the termination is by the Executive under Paragraph 6(d), or by
Intervoice for any reason, specify the Employment Termination Date. The failure by Intervoice or
the Executive to set forth in the Notice of Termination any fact or circumstance that contributes
to a showing of Inability to Perform, or Cause, shall not waive any right of Intervoice or preclude
Intervoice from asserting such fact or circumstance in enforcing or defending its rights.

     (f) Employment Termination Date. The Employment Termination Date shall be as follows:
(i) if the Executive’s employment is terminated by the Executive’s death, the date of death; (ii)
if the Executive’s employment is terminated by Intervoice because of the Executive’s Inability to
Perform or for Cause, the date specified in the Notice of Termination, which date shall be no
earlier than the date such notice is given; or (iii) if the termination is under Paragraph 6(d),
the date specified in the Notice of Termination, which date shall be no earlier than three months
after the date such notice is given; provided, however, that in the event the Executive provides a
Notice of Termination under Paragraph 6(d), Intervoice may accelerate the Employment Termination
Date or place the Executive on leave by so notifying the Executive and paying the Executive the
compensation the Executive would otherwise have received by working through the

Employment Agreement — Page 6

 

 

otherwise applicable Employment Termination Date, and such acceleration or placement on leave
shall not be considered a termination of employment by Intervoice.

     (g) Deemed Resignation. In the event of termination of the Executive’s employment,
the Executive agrees that if at such time the Executive is a member of the Board or is an officer
of Intervoice or a director or officer of any of its Affiliates, the Executive shall be deemed to
have resigned from such position(s) effective on the Employment Termination Date, unless the Board
notifies the Executive prior to the Employment Termination Date of the Board’s desire that the
Executive remain a member of the Board, in which case the Executive shall not be deemed to have
resigned the Executive’s position as a member of the Board merely by virtue of the termination of
the Executive’s employment.

7. Compensation Upon Termination of Employment.

     (a) Death. If the Executive’s employment is terminated by reason of the Executive’s
death, Intervoice shall pay to such person as the Executive shall designate in a written notice to
Intervoice (or, if no such person is designated, to the Executive’s estate) any unpaid portion of
the Executive’s Base Salary accrued through the Employment Termination Date.

     (b) Inability to Perform. If the Executive’s employment is terminated by reason of
the Executive’s Inability to Perform, Intervoice shall pay to the Executive any unpaid portion of
the Executive’s Base Salary accrued through the Employment Termination Date.

     (c) Termination by the Executive. If the Executive’s employment is terminated by the
Executive pursuant to and in compliance with Paragraph 6(d), Intervoice shall pay to the Executive
any unpaid portion of the Executive’s Base Salary accrued through the Employment Termination Date.

     (d) Termination for Cause. If the Executive’s employment is terminated by Intervoice
for Cause, Intervoice shall pay to the Executive any unpaid portion of the Executive’s Base Salary
accrued through the Employment Termination Date.

     (e) Termination Without Cause.

          (i) If the Executive’s employment is terminated by Intervoice for any reason other than death,
Inability to Perform, or Cause, Intervoice will continue to pay to the Executive, at the time and
in the manner provided in Paragraph 7(e)(ii), the Executive’s Base Salary for 12 months from the
Employment Termination Date if, within 45 days after the Employment Termination Date, the Executive
has signed a general release agreement in a form acceptable to Intervoice and the Executive does
not thereafter revoke such an agreement, if permitted by law to do so; provided, however, that
Intervoice’s obligation under this Paragraph 7(e) is limited as follows:

Employment Agreement — Page 7

 

 

               (A) If, in the reasonable judgment of Intervoice, the Executive engages in any conduct that
violates Paragraph 8 or engages in any of the Restricted Activities described in Paragraph 9,
Intervoice’s obligation to make payments to the Executive under this Paragraph 7(e), if any such
obligation remains, shall end as of the date Intervoice so notifies the Executive in writing; and

               (B) if the Executive is arrested or indicted for any felony, other criminal offense punishable
by imprisonment or jail term of one year or more, or any violation of federal or state securities
laws, or has any civil enforcement action brought against the Executive by any regulatory agency,
for actions or omissions related to the Executive’s employment with Intervoice or any of its
Affiliates, or if Intervoice reasonably believes that the Executive has committed any act or
omission that would have entitled Intervoice to terminate the Executive’s employment for Cause,
whether such act or omission was committed during the Executive’s employment with Intervoice or any
of its Affiliates or thereafter, Intervoice may suspend any payments remaining under this Paragraph
7(e) until the final resolution of such criminal or civil proceedings or until such earlier date on
which the Board has made a final determination as to whether the Executive committed such an act or
omission. If the Executive is found guilty or enters into a plea agreement, consent decree, or
similar arrangement with respect to any such criminal or civil proceedings, or if the Board
determines that the Executive has committed such an act or omission, (1) Intervoice’s obligation to
provide the payments set out in this Paragraph 7(e) shall immediately end, and (2) the Executive
shall repay to Intervoice any amounts paid to the Executive pursuant to this Paragraph 7(e) within
30 days after a written request to do so by Intervoice. If any such criminal or civil proceedings
do not result in a finding of guilt or the entry of a plea agreement or consent decree or similar
arrangement, or the Board determines that the Executive has not committed such an act or omission,
Intervoice shall pay to the Executive any payments that it has suspended, with interest on such
suspended payments at its cost of funds, and shall make any remaining payments due under this
Paragraph 7(e).

          (ii) The Base Salary payments provided for under this Paragraph 7(e) shall be paid at the time
and in the manner such Base Salary would have been paid had there been no termination of employment
unless such payments may not be begun before the date that is six months after the date of the
Executive’s separation from service (or, if earlier, the date of death of the Executive) as
provided in Section 409A(a)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) in
order to meet the requirements of Section 409A of the Code, as determined by Intervoice in its sole
judgment, in which case the sum of the payments that otherwise would have been made during such
six-month period shall be paid in a single lump-sum payment as soon as administratively practicable
following the date that is six months after the date of the Executive’s separation from service
(or, if earlier, the date of death of the Executive) and any remaining payments provided for under
this Paragraph 7(e) shall be paid at the time and in the manner such Base Salary would have been
paid had there been no termination of employment.

Employment Agreement — Page 8

 

 

     (f) Health Plan. If the Executive’s employment with Intervoice or any Affiliate of
Intervoice ends on account of a termination by Intervoice for any reason other than death or for
Cause and if the Executive signs and does not revoke the general release agreement referred to in
Paragraph 7(e)(i), the Executive will receive, in addition to any other payments due under this
Agreement, the following benefit: if, at the time the Executive’s employment ends, the Executive
participates in one or more health plans offered by Intervoice and the Executive is eligible for
and elects to receive continued coverage under such plan(s) in accordance with the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or any successor law, Intervoice will reimburse
the Executive during the 12-month period following the Employment Termination Date or, if shorter,
the period of such actual COBRA continuation coverage, the difference between the total amount of
the monthly COBRA premiums actually paid by the Executive for such continued health plan benefits
and the total monthly amount of the premiums charged to active senior executives of Intervoice for
the same health plan coverage. Provided, however, that Intervoice’s reimbursement obligation under
this Paragraph 7(f) shall terminate upon the earlier of (i) the expiration of the time period(s)
described above, or (ii) the date the Executive becomes eligible for health coverage under a
subsequent employer’s plan without being subject to any preexisting-condition exclusion under that
plan, which occurrence the Executive shall promptly report to Intervoice.

     (g) Exclusive Compensation and Benefits. The compensation and benefits described in
this Paragraph 7, along with the associated terms for payment, constitute all of Intervoice’s
obligations to the Executive with respect to the end of the Executive’s employment with Intervoice
and/or its Affiliates. However, nothing in this Agreement is intended to limit any earned, vested
benefits (other than any entitlement to severance or separation pay, if any) that the Executive may
have under the applicable provisions of any benefit plan of Intervoice in which the Executive is
participating at the time of the termination of employment.

     (h) Compliance with Code Section 409A. Any provision of this Agreement to the
contrary notwithstanding, all compensation payable pursuant to this Agreement that is determined by
Intervoice in its sole judgment to be subject to Section 409A of the Code shall be paid in a manner
that Intervoice in its sole judgment determines meets the requirements of Section 409A of the Code
and any related rules, regulations, or other guidance, even if meeting such requirements would
result in a delay in the time of payment of such compensation.

     (i) Payment after the Executive’s Death. In the event of the Executive’s death after
the Executive becomes entitled to a payment or payments pursuant to this Paragraph 7, any remaining
unpaid amounts shall be paid, at the time and in the manner such payments otherwise would have been
paid to the Executive, to such person as the Executive shall designate in a written notice to
Intervoice (or, if no such person is designated, to the Executive’s estate).

Employment Agreement — Page 9

 

 

8. Confidential Information.

     (a) The Executive acknowledges and agrees that (i) Intervoice is engaged in a highly
competitive business; (ii) Intervoice has expended considerable time and resources to develop
goodwill with its customers, vendors, and others, and to create, protect, and exploit Confidential
Information; (iii) Intervoice must continue to prevent the dilution of its goodwill and
unauthorized use or disclosure of its Confidential Information to avoid irreparable harm to its
legitimate business interests; (iv) in the voice and data solutions business (including
particularly, but without limitation, the segments of interactive voice response/portal solutions,
messaging solutions, payment solutions, maintenance and related services, and managed services
provided for customers on an outsourced or managed-service-provider basis), the Executive’s
participation in or direction of Intervoice’s day-to-day activities are an integral part of
Intervoice’s continued success and goodwill; (v) given the Executive’s position and
responsibilities, the Executive necessarily will be creating Confidential Information that belongs
to Intervoice and enhances Intervoice’s goodwill, and in carrying out such responsibilities the
Executive in turn will be relying on Intervoice’s goodwill and the disclosure by Intervoice to the
Executive of Confidential Information; (vi) the Executive will have access to Confidential
Information that could be used by any Competitor of Intervoice in a manner that would irreparably
harm Intervoice’s competitive position in the marketplace and dilute its goodwill; and (vii) the
Executive necessarily would use or disclose Confidential Information if the Executive were to
engage in competition with Intervoice.

     (b) Intervoice acknowledges and agrees that the Executive must have and continue to have
throughout the Executive’s employment the benefits and use of its and its Affiliates’ goodwill and
Confidential Information in order to properly carry out the Executive’s responsibilities.
Intervoice accordingly promises to provide the Executive new and additional Confidential
Information beyond any such Confidential Information the Executive may have received previously and
to authorize the Executive to engage in activities that will create new and additional Confidential
Information.

     (c) Intervoice and the Executive thus acknowledge and agree that during the Executive’s
employment with Intervoice and upon execution and delivery of this Agreement, the Executive (i) has
received, will receive, and will continue to receive new, Confidential Information that is unique,
proprietary, and valuable to Intervoice and/or its Affiliates; (ii) has created, will create, and
will continue to create new, Confidential Information that is unique, proprietary, and valuable to
Intervoice and/or its Affiliates; and (iii) has benefited, will benefit, and will continue to
benefit, including without limitation by way of increased earnings and earning capacity, from the
goodwill Intervoice and its Affiliates have generated and from the Confidential Information.

     (d) Accordingly, the Executive acknowledges and agrees that at all times during the
Executive’s employment by Intervoice and/or any of its Affiliates and thereafter:

Employment Agreement — Page 10

 

 

          (i) all Confidential Information shall remain and be the sole and exclusive property of
Intervoice and/or its Affiliates;

          (ii) the Executive will protect and safeguard all Confidential Information;

          (iii) the Executive will hold all Confidential Information in strictest confidence, and will
not, directly or indirectly, disclose or divulge any Confidential Information to any person other
than an officer, director, or employee of, or legal counsel for, Intervoice or its Affiliates, to
the extent necessary for the proper performance of the Executive’s responsibilities unless
authorized to do so by Intervoice or compelled to do so by law or valid legal process;

          (iv) if the Executive believes that law or valid legal process compels the Executive’s
disclosure or divulgement of any Confidential Information, the Executive will notify Intervoice in
writing sufficiently in advance of any such disclosure to allow Intervoice the opportunity to
defend, limit, or otherwise protect its interests against such disclosure;

          (v) at the end of the Executive’s employment with Intervoice for any reason or at the request
of Intervoice at any time, the Executive will return to Intervoice all Confidential Information and
all copies thereof, in whatever tangible form or medium, including electronic; and

          (vi) absent the promises and representations of the Executive in this Paragraph 8 and in
Paragraph 9, Intervoice would require the Executive immediately to return any tangible Confidential
Information in the Executive’s possession, would not provide the Executive with new and additional
Confidential Information, would not authorize the Executive to engage in activities that will
create new and additional Confidential Information, and would not enter or have entered into this
Agreement.

9. Noncompetition and Nondisparagement Obligations. In consideration of Intervoice’s
promises to provide the Executive with new and additional Confidential Information and to authorize
the Executive to engage in activities that will create new and additional Confidential Information,
and the other promises and undertakings of Intervoice in this Agreement, the Executive agrees that,
while employed by Intervoice and/or any of its Affiliates and during the Restricted Activities
Period, the Executive shall not engage in any of the following activities, which are the
“Restricted Activities”:

     (a) The Executive will not directly or indirectly disparage Intervoice or its Affiliates, any
products, services, or operations of Intervoice or its Affiliates, or any of the former, current,
or future officers, directors, or employees of Intervoice or its Affiliates;

     (b) The Executive will not, whether on the Executive’s own behalf or on behalf of any other
individual, partnership, firm, corporation or business organization, either

Employment Agreement — Page 11

 

 

directly or indirectly solicit, induce, persuade, or entice, or endeavor to solicit, induce,
persuade, or entice, any person who is then employed by or otherwise engaged to perform services
for Intervoice or its Affiliates to leave that employment or cease performing those services;

     (c) The Executive will not, whether on the Executive’s own behalf or on behalf of any other
individual, partnership, firm, corporation or business organization, either directly or indirectly
solicit, induce, persuade, or entice, or endeavor to solicit, induce, persuade, or entice, any
person who is then a customer, supplier, or vendor of Intervoice or any of its Affiliates to cease
being a customer, supplier, or vendor of Intervoice or any of its Affiliates or to divert all or
any part of such person’s or entity’s business from Intervoice or any of its Affiliates; and

     (d) The Executive will not associate directly or indirectly, as an employee, officer,
director, agent, partner, stockholder, owner, member, representative, or consultant, with any
Competitor of Intervoice or any of its Affiliates, unless (i) the Executive has advised Intervoice
in writing in advance of the Executive’s desire to undertake such activities and the specific
nature of such activities; (ii) Intervoice has received written assurances (that will be designed,
among other things, to protect Intervoice’s and its Affiliates’ goodwill, Confidential Information,
and other important commercial interests) from the Competitor and the Executive that are, in
Intervoice’s sole discretion, adequate to protect its interests; (iii) Intervoice, in its sole
discretion, has approved in writing such association; and (iv) the Executive and the Competitor
adhere to such assurances. After the end of the Executive’s employment with Intervoice and any
Affiliate, the restriction set forth in this Paragraph 9(d) extends only to the performance by the
Executive, directly or indirectly, of the same or similar activities the Executive has performed
for Intervoice or any of its Affiliates during the Executive’s employment with Intervoice or any of
Affiliates, whether or not under this Agreement, or such other activities that by their nature are
likely to lead to the disclosure of Confidential Information, and that takes place anywhere in, or
is directed at any part of, the Noncompetition Area. The Executive shall not be in violation of
this Paragraph 9(d) solely as a result of the Executive’s investment in stock or other securities
of a Competitor or any of its Affiliates listed on a national securities exchange or actively
traded in the over-the-counter market if the Executive and the members of the Executive’s immediate
family do not, directly or indirectly, hold more than a total of one percent of all such shares of
stock or other securities issued and outstanding. The Executive acknowledges and agrees that
engaging in the activities restricted by this Paragraph 9(d) would result in the inevitable
disclosure or use of Confidential Information for the Competitor’s benefit or to the detriment of
Intervoice or its Affiliates.

     The Executive acknowledges and agrees that the restrictions contained in this Paragraph 9 are
ancillary to an otherwise enforceable agreement, including without limitation the mutual promises
and undertakings set forth in Paragraph 8; that Intervoice’s promises and undertakings set forth in
Paragraph 8 and the Executive’s position and responsibilities with Intervoice give rise to
Intervoice’s interest in restricting the Executive’s post-employment activities; that such
restrictions are designed to

Employment Agreement — Page 12

 

 

enforce the Executive’s promises and undertakings set forth in this Paragraph 9 and the Executive’s
common-law obligations and duties owed to Intervoice and its Affiliates; that the restrictions are
reasonable and necessary, are valid and enforceable under Texas law, and do not impose a greater
restraint than necessary to protect Intervoice’s goodwill, Confidential Information, and other
legitimate business interests; that the Executive will immediately notify Intervoice in writing
should the Executive believe or be advised that the restrictions are not, or likely are not, valid
or enforceable under Texas law or the law of any other state that the Executive contends or is
advised is applicable; and that absent the promises and representations made by the Executive in
this Paragraph 9 and Paragraph 8, Intervoice would require the return of any Confidential
Information in the Executive’s possession, would not provide the Executive with new and additional
Confidential Information, would not authorize the Executive to engage in activities that will
create new and additional Confidential Information, and would not enter or have entered into this
Agreement.

10. Intellectual Property.

     (a) In consideration of Intervoice’s promises and undertakings in this Agreement, the
Executive agrees that all Work Product will be disclosed promptly by the Executive to Intervoice,
shall be the sole and exclusive property of Intervoice, and is hereby assigned to Intervoice,
regardless of whether (i) such Work Product was conceived, made, developed or worked on during
regular hours of the Executive’s employment or time away from such employment, (ii) the Work
Product was made at the suggestion of Intervoice; or (iii) the Work Product was reduced to drawing,
written description, documentation, models, or other tangible form. Without limiting the
foregoing, the Executive acknowledges that all original works of authorship that are made by the
Executive, solely or jointly with others, within the scope of the Executive’s employment and that
are protectable by copyright are “works made for hire,” as that term is defined in the United
States Copyright Act (17 U.S.C., Section 101), and are therefore owned by Intervoice from the time
of creation.

     (b) The Executive agrees to assign, transfer, and set over, and the Executive does hereby
assign, transfer, and set over to Intervoice, all of the Executive’s right, title, and interest in
and to all Work Product, without the necessity of any further compensation, and agrees that
Intervoice is entitled to obtain and hold in its own name all patents, copyrights, and other rights
in respect of all Work Product. The Executive agrees to (i) cooperate with Intervoice during and
after the Executive’s employment with Intervoice in obtaining patents or copyrights or other
intellectual-property protection for all Work Product; (ii) execute, acknowledge, seal, and deliver
all documents tendered by Intervoice to evidence its ownership thereof throughout the world; and
(iii) cooperate with Intervoice in obtaining, defending, and enforcing its rights therein.

     (c) The Executive represents that there are no other contracts to assign inventions or other
intellectual property that are now in existence between the Executive and any other person or
entity except Intervoice. The Executive further represents that the Executive has no other
employment or undertakings that might restrict or impair the

Employment Agreement — Page 13

 

 

Executive’s performance of this Agreement. The Executive will not in connection with the
Executive’s employment by Intervoice, use or disclose to Intervoice any confidential, trade secret,
or other proprietary information of any previous employer or other person that the Executive is not
lawfully entitled to disclose.

11. Reformation. If the provisions of Paragraphs 8, 9, or 10 are ever deemed by a court to
exceed the limitations permitted by applicable law, the Executive and Intervoice agree that such
provisions shall be, and are, automatically reformed to the maximum limitations permitted by such
law.

12. Assistance in Litigation. During the Employment Term and thereafter, the Executive
shall, upon reasonable notice, furnish such information and proper assistance to Intervoice or any
of its Affiliates as may reasonably be required by Intervoice in connection with any litigation in
which Intervoice or any of its Affiliates is, or may become, a party. This obligation includes the
Executive’s promptly meeting with counsel for Intervoice or any of its Affiliates at reasonable
times upon their request, and providing testimony in court, before an arbitrator or other convening
authority, or upon deposition that is truthful, accurate, and complete, according to information
known to the Executive. Intervoice shall reimburse the Executive for all reasonable out-of-pocket
expenses incurred by the Executive in rendering such assistance.

13. No Obligation to Pay. With regard to any payment due to the Executive under this
Agreement, it shall not be a breach of any provision of this Agreement for Intervoice to fail to
make such payment (or any portion thereof) to the Executive if (i) Intervoice is legally prohibited
from making the payment (or any portion thereof); (ii) Intervoice would be legally entitled to
recover the payment (or any portion thereof) if it was made; or (iii) the Executive would be
legally obligated to repay the payment (or any portion thereof) if it was made.

14. Withholding Taxes. Intervoice shall withhold from any payments to be made to the
Executive pursuant to this Agreement such amounts (including Social Security and Medicare
contributions and federal income taxes) as shall be required by federal, state, and local
withholding tax laws.

15. Notices. All notices, requests, demands, and other communications required or
permitted to be given or made by either party shall be in writing and shall be deemed to have been
duly given or made (a) when delivered personally, or (b) when deposited in the United States mail,
first class registered or certified mail, postage prepaid, return receipt requested, to the party
for which intended at the following addresses (or at such other addresses as shall be specified by
the parties by like notice, except that notices of change of address shall be effective only upon
receipt):

Employment Agreement — Page 14

 

 

          (i) If to Intervoice, at:

Intervoice, Inc.

Attn: General Counsel

17811 Waterview Parkway

Dallas, TX 75252

          (ii) If to the Executive, at the Executive’s then-current home address on file with
Intervoice.

16. Injunctive Relief. The Executive acknowledges and agrees that Intervoice would not
have an adequate remedy at law and would be irreparably harmed in the event that any of the
provisions of Paragraphs 8, 9, and 10 were not performed in accordance with their specific terms or
were otherwise breached. Accordingly, the Executive agrees that Intervoice shall be entitled to
equitable relief, including preliminary and permanent injunctions and specific performance, in the
event the Executive breaches or threatens to breach any of the provisions of such Paragraphs,
without the necessity of posting any bond or proving special damages or irreparable injury. Such
remedies shall not be deemed to be the exclusive remedies for a breach or threatened breach of this
Agreement by the Executive, but shall be in addition to all other remedies available to Intervoice
at law or in equity.

17. Mitigation. The Executive shall not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for in this Agreement be reduced by any compensation earned by the Executive
as the result of employment by another employer after the date of termination of the Executive’s
employment with Intervoice, or otherwise.

18. Binding Effect; No Assignment by the Executive; No Third Party Benefit. This Agreement
shall be binding upon and inure to the benefit of the parties and their respective heirs, legal
representatives, successors, and assigns; provided, however, that the Executive shall not assign or
otherwise transfer this Agreement or any of the Executive’s rights or obligations under this
Agreement. Intervoice is authorized to assign or otherwise transfer this Agreement or any of its
rights or obligations under this Agreement to an Affiliate of Intervoice. The Executive shall not
have any right to pledge, hypothecate, anticipate, or in any way create a lien upon any payments or
other benefits provided under this Agreement; and no benefits payable under this Agreement shall be
assignable in anticipation of payment either by voluntary or involuntary acts, or by operation of
law, except by will or pursuant to the laws of descent and distribution. Nothing in this
Agreement, express or implied, is intended to or shall confer upon any person other than the
parties, and their respective heirs, legal representatives, successors, and permitted assigns, any
rights, benefits, or remedies of any nature whatsoever under or by reason of this Agreement.

Employment Agreement — Page 15

 

 

19. Governing Law; Venue. This Agreement and the employment of the Executive shall be
governed by the laws of the State of Texas except for its laws with respect to conflict of laws.
The exclusive forum for any lawsuit arising from or related to the Executive’s employment or this
Agreement shall be a state or federal court in Dallas County, Texas. This provision does not
prevent Intervoice from removing to an appropriate federal court any action brought in state court.
THE EXECUTIVE HEREBY CONSENTS, AND WAIVES ANY NON-JURISDICTIONAL OBJECTIONS, TO REMOVAL TO FEDERAL
COURT BY INTERVOICE OF ANY ACTION BROUGHT AGAINST IT BY THE EXECUTIVE.

20. JURY TRIAL WAIVER. IN THE EVENT THAT ANY DISPUTE ARISING FROM OR RELATED TO THIS
AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT WITH INTERVOICE RESULTS IN A LAWSUIT, BOTH INTERVOICE AND
THE EXECUTIVE MUTUALLY WAIVE ANY RIGHT THEY MAY OTHERWISE HAVE FOR A JURY TO DECIDE THE ISSUES IN
THE LAWSUIT, REGARDLESS OF THE PARTY OR PARTIES ASSERTING CLAIMS IN THE LAWSUIT OR THE NATURE OF
SUCH CLAIMS. INTERVOICE AND THE EXECUTIVE IRREVOCABLY AGREE THAT ALL ISSUES IN SUCH A LAWSUIT
SHALL BE DECIDED BY A JUDGE RATHER THAN A JURY.

21. Entire Agreement. This Agreement contains the entire agreement between the parties
concerning the subject matter hereof and supersedes all prior agreements and understandings,
written and oral, between the parties with respect to the subject matter of this Agreement.
Provided, however, that if the Executive executes or has previously executed any past, current, or
future form of Intervoice’s “Employee Agreement on Ideas, Inventions and Confidential Information,”
(i) said agreement shall continue in full force and effect, and its provisions and obligations
shall always be read, interpreted, and construed cumulatively with, and in no way in limitation or
derogation of, any similar provisions contained in this Agreement, and (ii) any perceived conflict
between the terms of said agreement and this Agreement shall be resolved in favor of the terms of
this Agreement.

22. Modification; Waiver. No person, other than pursuant to a resolution duly adopted by
the Board, shall have authority on behalf of Intervoice to agree to modify, amend, or waive any
provision of this Agreement. Further, this Agreement may not be changed orally, but only by a
written agreement signed by the party against whom any waiver, change, amendment, modification or
discharge is sought to be enforced. The Executive acknowledges and agrees that no breach by
Intervoice of this Agreement or failure to enforce or insist on its rights under this Agreement
shall constitute a waiver or abandonment of any such rights or defense to enforcement of such
rights.

23. Construction. This Agreement is to be construed as a whole, according to its fair
meaning, and not strictly for or against any of the parties.

24. Severability. If any provision of this Agreement shall be determined by a court to be
invalid or unenforceable, the remaining provisions of this Agreement shall not be

Employment Agreement — Page 16

 

 

affected thereby, shall remain in full force and effect, and shall be enforceable to the fullest
extent permitted by applicable law.

25. Counterparts. This Agreement may be executed by the parties in any number of
counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same agreement.

     IN WITNESS WHEREOF, Intervoice has caused this Agreement to be executed on its behalf by its
duly authorized officer, and the Executive has executed this Agreement, effective as of the date
first set forth above.

	 	 	 	 	 
	INTERVOICE, INC.	 	Insert Name
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	Robert E. Ritchey	 	 
	 
	 	 	 	 
	President and Chief Executive Officer	 	 

Employment Agreement — Page 17

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