Document:

EX-10.34 Employment Agreement - R. David Alexander

 

Exhibit 10. __

Confidential treatment has been requested for portions of this document. This copy of the
document filed as an exhibit omits the confidential information subject to the confidential
treatment request. Omissions are designated by three asterisks (***). A complete version of this
document is being filed separately with the Securities and Exchange Commission.

PORTRAIT CORPORATION OF AMERICA, INC.

815 Matthews-Mint Hill Road

Matthews, NC 28105

November 2, 2005

Mr. R. David Alexander

1700 White Pond Lane

Waxhaw, NC 28173

Dear David:

On behalf of the Board of Directors of Portrait Corporation of America, Inc. (“PCA” or the
“Company”), we are pleased to extend you an offer for the position of President, Chief Executive
Officer and Chairman of the Board of Directors of PCA under the terms described below.

Base Compensation. An annual salary of $500,000 payable according to the Company’s normal payment
schedule for Executive Officers. Your salary will be reviewed annually by the Board of Directors
and increased as it deems appropriate. Your first-year Base Compensation will be a pro rata portion
of the annual salary, based on the Commencement Date.

Bonus. A bonus of 60% of Base Compensation received in any year, subject to achievement of 100% of
the Performance Goals as defined below; plus, to the extent EBITDA (as defined below) exceeds the
EBITDA for which 100% of the portion of the bonus relating to budget (as defined below) is payable,
5% of Base Compensation for every $1.0 million of such excess. The bonus shall be subject to a
minimum payment, based on achievement of minimum Performance Goals as described below. Failure to
achieve the minimum Performance Goals may result in no Bonus for the applicable year. Any bonus
earned will be paid on or before April 30 of the calendar year following the period for which such
bonus was earned. You must be employed on January 31 to be eligible for the bonus for that fiscal
year.

First-Year Bonus. Since you were not involved in the development of this year’s budget and will
serve as CEO for only a portion of the fiscal year, your first-year bonus will be a pro rata
portion of an amount equivalent to $10,000 per month, based on the Commencement Date. The
first-year bonus will be paid on or before April 30, 2006 and is subject to the employment
requirement described above.

Performance Goals. The performance goals will be set in advance for each year in agreement with the
Board of Directors and will be based on the achievement of the budget and other financial
benchmarks, as well as significant strategic objectives and important milestones. We anticipate
that at least 75% of the bonus will be payable based on achievement of budget. For the fiscal year
ending January 31, 2007, with respect to that portion of the bonus relating to achievement of
budget: none will be payable unless the Company achieves at least $ *** million of earnings before
interest, taxes, depreciation and amortization (EBITDA); the full amount will be payable if the
Company achieves $ *** million of EBITDA; and the amount will be prorated for achievement of budget
between $ *** and $ *** million of EBITDA. The EBITDA levels in the prior sentence are determined after
payment of all Company bonuses.

Stock Option Grant. Options on 188,000 shares of common stock of PCA, or approximately 4.50% of
the Company’s primary outstanding shares. The option grants will be at the following

 

 

			
	Mr. R. David Alexander
	 	Page 2
	November 2, 2005	 	 

exercise prices: (i) 125,000 options at $8.00 per share; and (ii) 63,000 options at $26.50 per
share. The options, which are governed by the PCA Stock Option Plan (Attachment 1), except as
described in this letter, shall be granted on the Commencement Date and will vest in four equal
annual installments beginning on the first anniversary of the Commencement Date.

Acceleration of Vesting on Change in Control. On a change in control, all options under the Stock
Option Grant will vest and must be exercised prior to or simultaneous with the change-in-control
transaction. The initial public offering of PCA stock does not constitute a change of control.

Option Termination. The options under the Stock Option Grant will expire eight years after the
Commencement Date. If there has not been a liquidity event within eight years of the Commencement
Date, the options will be extended to 60 days following the initial liquidity event. If you are
restricted (by shareholder agreements or securities laws) in your ability to exercise all of your
options in the initial liquidity event, then the remaining options will be extended to 60 days
following the next liquidity event Section 2.2(d) of Attachment 1 hereto will be modified as
necessary to allow for extensions in term as described in this paragraph.

Other Terms of Stock Option Grant. The options under the Stock Option Grant will include customary
drag-along and tag-along provisions for transactions of this type. In private transactions between
Jupiter Partners II L.P. (“Jupiter”) and third parties, you will have the right to sell a
proportional amount of vested shares on the same terms and conditions under which Jupiter is
selling its shares. Jupiter has similar tag-along rights when you or other managers are eligible
and proceed to sell your shares in a non-public transaction. At any time that Jupiter has agreed to
sell shares of common stock, Jupiter shall be entitled to require you to sell an equivalent
proportion of your shares and options in the transaction. Section 1.6(b)(i) of Attachment 1 hereto
will be modified to substitute, in each instance, “Board” for “Committee.”

Cancellation of Options. The Company has the right to cancel your options under the following
circumstances:

	 	 	 
	Event	 	Options cancelable
	Death or Disability

	 	Unvested options only
	Termination for Cause

	 	All options
	Termination without Cause

	 	Unvested options only
	Resignation

	 	Unvested options only

Acceleration of Options. Under the following circumstances, vested options under the Stock
Option Grant must be exercised within the time-frames outlined below. Any options not exercised
during the appropriate period will be canceled.

	 	 	 
	Event	 	Accelerated Exercise Period
	Death or Disability

	 	No acceleration
	Termination for Cause

	 	All options canceled
	Termination without Cause

	 	No acceleration
	Resignation

	 	60 days

 

 

			
	Mr. R. David Alexander
	 	Page 3
	November 2, 2005	 	 

Termination Payment. In the event of termination by PCA’s Board of Directors (other than for Cause)
and upon return of and in consideration for a full general release and non-competition agreement,
you will receive (i) if the termination occurs within the first 12 months of the Commencement Date,
100% of your then Base Compensation in 12 equal monthly installments from the date of termination;
(ii) if the termination occurs after the 12-month anniversary but prior to the 36-month anniversary
of the Commencement Date, 75% of your then Base Compensation in nine equal monthly installments
from the date of termination; or (iii) if the termination occurs after the 36-month anniversary of
the Commencement Date, 50% of your then Base Compensation in six equal monthly installments from
the date of termination. (“Cause” is defined in Attachment 1.) The non-competition agreement
referred to in the first sentence of this paragraph shall expire simultaneous with the end of the
monthly period corresponding to the final payment hereunder. A Sale (defined below) pursuant to
which you are offered Comparable Employment (defined below) does not entitle you to any payment
hereunder, whether or not you accept such employment.

Sale. If the Company is sold (through a sale of stock or assets, a merger, or otherwise) (a “Sale”)
and you are offered the opportunity to continue your employment with the Company or are offered new
employment with an affiliate or successor of the Company, in each case on comparable terms as in
effect prior to the Sale (including comparable position with the existing business, base salary,
bonus, and fringe benefits, but excluding equity-based compensation) (“Comparable Employment”),
then you agree to remain in the employment of the Company or accept such new employment, as the
case may be, for a period of 12 months following the Sale (or such shorter period as may be
requested of you by the Company or its affiliates or successors, as the case may be). Comparable
Employment shall include, in the event of a Sale to a company with multiple subsidiaries or
divisions, a position in which you retain principal management responsibility for the assets and
operations of PCA existing at the time of Sale. In the event you do not remain in or accept new
employment as described, you shall forfeit 33% of the options granted under the Stock Option Grant
(pro rata by exercise price).

Repotting. The Chief Executive Officer will report to the Board of Directors.

Board Membership. The Chief Executive Officer will have a seat on the Board of Directors and serve
as Chairman.

Vacation and Benefits. As an Executive Officer of the Company, you will be entitled to participate
in the current PCA Employee Benefit Plan (the “Benefit Plan”) as summarized in Attachment 2 of this
letter. However, the Company’s policies, including as described in the Benefit Plan, will be
modified as they pertain to you as follows: (1) health, life, dental, 401 (k) and disability
benefits will become effective on the Commencement Date; and (2) you will be entitled to a minimum
of four weeks of vacation per year.

Commencement Date. On or around Monday, November 28, 2005.

YOUR EMPLOYMENT WITH PCA will be on an “at will” basis and subject to the personnel policies of the
Company as they may exist from time to time. Nothing contained in this letter or any other document
provided to you by PCA is intended to be, nor should it be, interpreted as a guarantee that
employment or any benefit will be continued for any period of time.

 

 

			
	Mr. R. David Alexander
	 	Page 4
	November 2, 2005	 	 

Your signing this letter also represents your acceptance of the provisions contained in Attachment
1 to this letter between you and the Company with regard to confidentiality, non-competition and
work-product. Further, your acceptance of employment with PCA will be deemed a representation by
you that you have no conflicting non-competition or confidentiality agreements.

This offer letter will be governed by the laws of the State of New York, regardless of place of
execution or conflicts-of-law principles.

This letter supersedes the letters delivered to you by the undersigned dated October 24, 2005 and
October 28, 2005.

We are very pleased to be able to make this offer, and look forward to your acceptance and future
service to PCA. Please indicate your acceptance of the terms outlined in this letter by
countersigning below and returning a copy of this letter no later than Monday, November 21, 2005,
after which this offer will expire.

	 	 	 	 	 
	 

	 	Very truly yours,
	 	 
	 
	 	 	 	 
	 

	 	/s/ Terry J. Blumer	 	 
	 

	 	 	 	 
	 

	 	Terry J. Blumer,	 	 
	 

	 	     Member, Search Committee,	 	 
	 

	 	     on behalf of the Board of Directors	 	 

	 	 	 
	ACCEPTED AND AGREED

	 	 
	this 2 nd day of November, 2005
	 	 
	 
	 	 
	/s/ R. David Alexander
	 	 
	 	 	 
	R. David Alexander
	 	 
	 
	 	 
	ACCEPTED AND AGREED
	 	 
	this 2 nd  day of November, 2005
	 	 
	 
	 	 
	/s/ John A. Sprague
	 	 
	 	 	 
	John A. Sprague, General Partner
	 	 
	on behalf of Jupiter Partners II L.P.
	 	 

 

 

			
	Mr. R. David Alexander
	 	Page 5
	November 2, 2005	 	 

Attachments:

          PCA Stock Option Plan (1)

          PCA Employee Benefit Plan documents (2)

cc: Terry J. Blumer, PCA Director

          John F. Klein, PCA Director

          Eric F. Scheuermann, PCA DirectorEX-10.40 Lab Sales Agreement

 

Confidential
treatment has been requested for portions of this document. This copy
of the document filed as an exhibit omits the confidential
information subject to the confidential treatment request. Omissions
are designated by three asterisks (***). A complete version of this
document is being filed separately with the Securities and Exchange
Commission.

Exhibit 10.__

Eastman Kodak Company

Professional Lab

Sales Agreement

      

For Kodak Use Only:

	 	 	 
	Buyer #
	 	 
	

 

	 
	Cust
Hierarchy # 
	 	 
	 

	 

	 	 	 	 	 
	Buyer Name

	 	PCA LLC	 	 
	 
	 	 	 	 
	Street Address

	 	815 Matthews-Mint Hill Road	 	 
	 
	 	 	 	 
	City, State, Zip

	 	Matthews, NC 28105	 	 
	 
	 	 	 	 
	Telephone

	 	704-588-4351
	 	Fax 704-845-8427
	 
	 	 	 	 
	E-Mail Address

	 	dwithin@pcaintl.com
	 	Web URL pcaintl.com

 

	 
	 	 	 	 
	Please specify the name and address, if different from above, of the individual who should receive notices, faxes, and mailings from Kodak.
	 
	 	 	 	 
	Contact Name

	 	David Alexander, CEO with a copy to Dave Withington,	 	 
	 
	 	 	 	 
	Street Address

	 	815 Matthews-Mint Hill Road	 	 
	 
	 	 	 	 
	City, State Zip

	 	Matthews, NC 28105	 	 

Buyer Authorized Signature:

	 	 	 
	Buyer Signature

	 	/s/ David J. Withington

 

	 
	 	 
	Print Name

	 	DAVID J. WITHINGTON
	 
	 	 
	Title

	 	S V P
	 
	 	 
	Date

	 	12/2/2005

Kodak Authorized Signature:

	 	 	 
	Eastman Kodak Company
	By

	 	/s/ John O’Grady

 

	 
	 	 
	Title

	 	Director, US & C Sales & VP DFIS
	 

	 	Digital & Film Imaging Systems
	 
	 	 
	Date

	 	12-19-05
	Business Operations
	 	 
	Manager’s Initials

	 	/s/ [ILLEGIBLE]

 

Kodak Regional Manager Verification:

	 	 	 
	Signature
	 
	 

	

 

	 
	 
	 	 
	Print Name
	 
	 

	

 

	 
	 
	 	 
	 
	 	 
	Date 
	 	 
	 

	 

Kodak Notification:

	 	 	 
	 
	 	 
	 

	 	Eastman Kodak Company
	 
	 	 
	 

	 	DFIS Contracts Management
	 

	 	343 State Street
	 

	 	Rochester, NY 14650-0508
	 
	 	 
	 

	 	FAX 585-724-9089
	 
	 	 

Kpro Lab Sales Agreement

Tmp rev as of 3/27/03

Page 1

 

 

This agreement between Eastman Kodak Company (“Kodak”) and PCA LLC (“Buyer”) covers
a term beginning January 1st, 2006 and ending June 30th, 2007 (“Term”). Neither
party is obligated to renew this agreement at the end of the Term nor to extend this agreement
beyond the Term.

	1.0 	Certain Obligations of Buyer

	 	•	 	Subject to the terms of this Agreement, Buyer shall purchase and use, for its North American
operations, (***) Color Negative Film during the Term, except that Buyer may purchase
up to 1% of its North American requirements for film from other vendors for testing and
evaluation.
	 
	 	•	 	Buyer shall purchase at least (***) of Color Negative Film during
calendar year 2006 and at least (***) of Color Negative Film during the first
six months of 2007 (each a “Purchase Commitment”).
	 
	 	•	 	Buyer shall pre-pay all orders via wire transfer.
	 
	 	•	 	Buyer shall provide a forecast to Kodak during each month, except
for the last three months, of this agreement containing a 12-month estimate of its
requirements for the Products referred to in Sections 1.0 and 2.0.
	 
	 	•	 	Buyer shall purchase and take delivery of all quantities of the
Products set forth in the first 3 months of
each forecast it provides to Kodak.
	 
	 	•	 	Buyer shall purchase 100 ISO Film-5281 in minimum and multiple quantities of 1 pallet.
	 
	 	•	 	Buyer shall purchase 200 ISO Film-5795 in minimum and multiple quantities of 1 pallet.
	 
	 	•	 	Buyer shall place all orders via the Kodak B2B Partner Site at www.kodak.com/go/partner whenever
practicable.

2.0 Certain Obligations of Kodak

	 	•	 	Kodak shall provide Buyer (***) for C-41 and RA-4
chemistry.
	 
	 	•	 	(***)

	 	 	 	 	 
	Film choices (unperforated)

	 	35mm x 100'
	 	46mm x 100'
	100 ISO Film-5281

	 	(***)
	 	(***)
	200 ISO Film -5795

	 	(***)
	 	(***)
	Portra 160NC-5755

	 	(***)
	 	(***)

	 	•	 	Following the period beginning on January 1, 2006 and
ending on March 1, 2006 (the “Ramp-Up
Period”), Kodak shall ship Products ordered by Buyer under this agreement within
eight (8) days following Kodak’s receipt of payment for such shipments. During the Ramp-Up Period,
Kodak will use commercially reasonable efforts to ship Products ordered by Buyer under this
agreement within fourteen (14) days following Kodak’s receipt of payment for such shipments.
Following the Ramp-Up Period, Kodak will use commercially reasonable efforts to ship Products ordered by
Buyer as soon as practicable following receipt of payment for such shipments, it being Buyer’s
expectation that most shipments can be made the business day following such receipt of payment.
	 
	 	•	 	If Buyer fails to achieve a Purchase Commitment, Kodak may, at
Kodak’s sole discretion, with respect to the Products to which such commitment applies, (a) recover from Buyer an amount
equal to the difference between that which Kodak received for such Products and that which Kodak
would have received for such Products had they been sold at applicable catalog/list price(s),
or (b) reduce the size of the discounts associated with such
Product(s) during the next six-month period of
the agreement (if any) by the percentage that Buyer fell short of such commitment. Should Kodak elect
to proceed under subpart (a) above, Buyer shall pay the subject amount to Kodak within 45 calendar
days of Kodak’s written request for such amount.

Kpro Lab Sales Agreement

Page 2

 

 

3.0 Products

This agreement applies only to the Kodak products referred to above (“Products”). The Products
sold to Buyer under this agreement are not for resale and are only for the use or consumption
by Buyer in the operation of its business. Any resale of Products will be a material breach of
this agreement, allowing Kodak to immediately terminate this agreement without an opportunity
by Buyer to cure.

4.0 Payment Terms

Payment terms are Cash Before Delivery (C.B.D.). Kodak will review Buyer’s financial situation and
credit risk multiple times during the Term. If conditions warrant, Kodak may, at its sole
discretion and following written notice to Buyer, extend payment terms that are more favorable to
Buyer than those initially set forth herein.

5.0 Price Increases

Kodak reserves the right to increase or decrease prices for Products. Kodak shall, however,
increase or decrease prices no more than one time every six months and shall limit any price
increase or decrease to the amount the PPI changed on a percentage basis during the immediately
preceding six months. As used in this Section 5.0, “PPI” shall mean the seasonally adjusted
Producer Price Index for Finished Goods as published by The Bureau of Labor Statistics of the U.S.
Department of Labor. No adjustment shall be made to prices unless the change in the PPI exceeded
one and one-half percent
(11/2%) during such six-month period.

6.0 Delivery and Inspection

Buyer must inspect arriving shipments and report errors in shipment promptly. Buyer must note
visible damage and shortage on the carrier manifest immediately upon unloading and report same to
Kodak within 24 hours after delivery. Concealed damage or shortages involving cartons received
intact must be reported to Kodak within 10 business days after
receipt. Products received by Buyer
and not reported to Kodak as damaged or shipped in error within such 10 day period will be deemed
accepted by Buyer but subject to the warranty set forth in Section 8.0. For invoice disputes
alleging shortages, Buyer must request proof of delivery within 90 days after the original invoice
date. Following the Ramp-Up Period, in the event of a delay in delivery for more than eight (8)
days beyond the scheduled delivery date, Buyer may purchase substitute product from another vendor,
it being understood that the quantity of such substitute product shall not exceed the quantity of
Product in Kodak’s delayed shipment. During the Ramp-Up Period, such right of Buyer shall be
triggered if Kodak’s delay in delivery exceeds fourteen (14) days. In such event, the purchase of
substitute product shall not be counted against Buyer’s 1% limitation but shall be counted in
calculating Buyer’s purchase requirement.

7.0 Product Returns

All Products are sold without return privileges except where the Product is damaged in transit or
shipped in error by Kodak. Prior to returning any Product, Buyer must first obtain a Return
Material Authorization (“RMA”) from Kodak and include that RMA number on the packing slip for
returned material. Product must be returned within 30 days after the RMA is issued. Kodak may
refuse to accept the return of any Product for which Buyer has not provided an RMA number, or for
which the RMA number was issued more than 30 days prior to the return. Returned Product must
include all items originally packaged with or accompanying the Products. Kodak will issue a credit
for authorized returns, calculated at Buyer’s then-current purchase price (taking into account any
and all relevant discounts provided by Kodak). Kodak, in its sole discretion, may charge Buyer for
missing items, and Buyer agrees to pay such charges within 30 days of receipt of notification of
such charges.

8.0 Warranty

Kodak film Products are warranted to be free from defects in manufacture, labeling, and packaging.
Kodak chemical Products are warranted to be merchantable. KODAK DISCLAIMS ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
USE. In the event of a breach of the foregoing warranty, Kodak’s sole obligation, and Buyer’s
exclusive remedy, shall be the replacement of such defective Product, even though the defect,
damage, or loss may be caused by the negligence or other fault of Kodak. Should this exclusive
remedy fail its essential purpose, Kodak’s entire liability shall be limited to the refund of the
purchase price (taking into account any and all relevant discounts provided by Kodak) of the
defective Product.

Kpro Lab Sales Agreement

Page 3

 

 

	9.0	 	Applicability of Terms and Conditions Set Forth in Orders and Kodak’s Catalog

	9.1	 	The terms and conditions set forth in the Kodak Professional Finishing Equipment and Supplies
Price Catalog (as may be amended by Kodak from time to time) that do not conflict with the terms and conditions
set forth in this agreement shall also apply to Kodak’s sale and Buyer’s purchase of the Products
(“Applicable Catalog Terms”).
	 
	9.2	 	Every order will be governed exclusively by the terms and conditions set forth in this agreement and the
Applicable Catalog Terms. Any conflicting or additional term or condition set forth on any order form or
purchase order shall have no force or effect. Kodak may refuse consent or impose additional charges as a
condition to accepting a cancellation or rescheduling an order.
	 
	10.0	 	Termination

	10.1	 	Either party may immediately terminate this agreement by providing written notice to the
other party if such other party fails to remedy a material breach of its obligations within sixty (60) days
after receipt of written notice from the non-breaching party specifying the nature of the breach.

	10.2	 	Either party may terminate this agreement immediately by providing written notice to the
other party if such other party ceases to conduct its operations in
the normal course of business, and/or becomes insolvent.
	 
	10.3	 	Either party may terminate this agreement without cause by giving the other party six (6) months advance
written notice.

	10.4	 	Kodak may terminate this agreement immediately by providing written notice to Buyer if Buyer
a) attempts to assign this Agreement without Kodak’s prior written consent, b) fails to meet a Purchase
Commitment, or c) transfers, directly or indirectly, to a competitor of Kodak, fifty percent (50%) or more
of either the assets or the voting stock of Buyer.
	 
	10.5	 	Kodak may terminate this agreement immediately by providing written notice to Buyer as permitted under
Section 3.0.

	10.6	 	The terms of this agreement, which, by their context are intended to survive
termination, shall survive termination.
	 
	11.0	 	Indemnity

	11.1	 	Kodak will indemnify, defend and hold Buyer harmless against any claim that any Products
provided under
this agreement infringe a United States Patent or a copyright enforceable in the United
States. Subject to
the limitations in this section, Kodak will pay any costs and damages that a court finally
awards against
Buyer as a result of such claim or that are paid in settlement thereof, including reasonable
attorney’s fees,
provided Buyer gives Kodak prompt written notice of the claim and tenders to Kodak the
defense and all
related settlement negotiations. Kodak will have no obligation with respect to any claim
based upon any
modification of the Products or the use of the Products with products not furnished by Kodak
if the
infringement would not have occurred but for the modification or use.

	11.2	 	Kodak will defend, indemnify, and hold harmless Buyer from and against any claims, demands,
liabilities or
expenses, including reasonable attorneys’ fees and costs for any personal or bodily injury
or property
damage, to the extent arising out of or resulting from any defects in Products. Kodak will
have no
obligation with respect to any claim based upon any modification of the Products or the use
of the Products
with products not furnished by Kodak if the damage would not have occurred but for the
modification or
use.

	11.3	 	Buyer will defend, indemnify and hold Kodak harmless from any and all claims resulting
from Buyer’s
modification of the Products or Buyer’s use of the Products with products not furnished
by Kodak.

12.0 Limitation of Liability

NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY COST OF COVER OR OTHER CONSEQUENTIAL, INCIDENTAL,
INDIRECT, PUNITIVE OR SPECIAL DAMAGES ARISING FROM OR IN RELATION TO THIS AGREEMENT, EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION WILL NOT APPLY TO A PARTY’S INDEMNITY
OBLIGATIONS, IF ANY.

Kpro Lab Sales Agreement

Page 4

 

 

	13.0	 	Confidentiality

The terms of this agreement are confidential and shall not be disclosed by either party, except as
may be required by law.

	14.0	 	Force Majeure

Kodak will not be responsible for any loss or damage due to delay in delivery of Products resulting
from any cause beyond its reasonable control. A delay resulting from any cause beyond the
reasonable control of Kodak shall extend the time for delivery to a date that provides Kodak with a
reasonable period to deliver the Products after the cause of the delay has been removed. Following
the Ramp-Up Period, in the event of a delay in delivery for more than eight (8) days beyond the
scheduled delivery date, Buyer may purchase substitute product from another vendor, it being
understood that the quantity of such substitute product shall not exceed the quantity of Product in
Kodak’s delayed shipment. During the Ramp-Up Period, such right of Buyer shall be triggered if
Kodak’s delay in delivery exceeds fourteen (14) days. In such event, the purchase of substitute
product shall not be counted against Buyer’s 1% limitation but shall be counted in calculating
Buyer’s purchase requirement.

	15.0	 	Governing Law

This agreement will be governed by and construed in accordance with the substantive laws of the
State of New York as applied to agreements entered into between two residents of the State of New
York, without regard to its choice-of-laws or conflicts-of-law principles. The parties submit to
the nonexclusive personal jurisdiction of, and waive any objection against the jurisdiction of the
United States District Court for the Western District of New York, and the state courts of the
State of New York in Monroe County, New York.

	16.0	 	Miscellaneous

	16.1	 	Assignment. Buyer may not assign this agreement or any rights or obligations hereunder
without the prior
written consent of Kodak. Any attempt to assign without such written consent shall be null
and void.

	16.2	 	Waiver. Failure by either party to enforce any term or condition of this agreement will not
be deemed a
waiver of future enforcement of that or any other term or condition of this agreement.

	16.3	 	Severability. If any term of this agreement is held invalid or unenforceable for any reason,
the remainder
of the provisions will continue in effect as if this agreement had been executed with the
invalid portion
eliminated.

	16.4	 	Headings. The various headings in this agreement are inserted for convenience only and shall
not affect the
meaning or interpretation of this agreement.
	 
	16.5	 	Electronic Communications. Buyer acknowledges that Kodak intends to send electronic mail
communications to Buyer regarding this agreement and the Products, and further agrees that
all such
electronic mail communications to employees or contractors of Buyer who are involved with
this agreement
are transactional or relationship messages within the meaning of the CAN-SPAM Act of 2003.

	16.6	 	Interpretation. This agreement is the result of negotiations between parties of equal
bargaining power and
no inference in favor or against either party will be drawn from the fact that such party
has drafted any
portion of this agreement.

	16.7	 	Conflicts in Documentation. In the event of a conflict between the provisions of this
agreement and the
provisions set forth in the Applicable Catalog Terms, the order of precedence shall be
Sections 1-16 of this
agreement and then the Applicable Catalog Terms. The conflicting terms and conditions set
forth in the
subordinate document shall be deemed deleted and shall not be binding upon either party.

Kpro Lab Sales Agreement

Page 5

 

 

	16.8	 	Entire Agreement. This agreement and the Applicable Catalog Terms constitutes the
entire agreement of the parties and supersedes all prior agreements and understandings,
whether written or oral, with respect to the subject matter of this agreement.

Kpro Lab Sales Agreement

Page 6

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