Document:

exv10w44

 

Exhibit 10.44

EXECUTIVE EMPLOYMENT AGREEMENT

               THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) executed this 15th
day of December, 2004, to be effective as of October 7, 2004, is made and
entered into by and between ACTIVANT SOLUTIONS INC., a Delaware corporation
(together with its successors and assigns permitted hereunder, the “Company”),
ACTIVANT SOLUTIONS HOLDINGS INC., a Delaware corporation (together with its
successor and assigns permitted hereunder, “Holdings”), and A. Laurence Jones
(the “Executive”).

               WHEREAS, the Company desires to employ the Executive as President and
Chief Executive Officer, and the Executive desires to be employed by the
Company in said capacity;

               WHEREAS, the parties hereto desire to set forth in writing the terms and
conditions of their understandings and agreements as to said employment; and

               WHEREAS, the Company deems it desirable and in its best interests to
employ the Executive as President and Chief Executive Officer on the terms and
conditions set forth herein.

               NOW, THEREFORE, in consideration of the foregoing, of the mutual promises
contained herein and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

     1. Employment Period. The Company hereby agrees to employ the Executive,
and the Executive hereby agrees to be employed by the Company, in accordance
with the terms and provisions of this Agreement, for the period commencing as
of the date of this Agreement and continuing until the Date of Termination
pursuant to Section 3(f) hereof (the “Employment Period”).

     2. Terms of Employment.

               (a) Position and Duties. During the Employment Period, the Executive (i)
shall serve as and perform the functions of President and Chief Executive
Officer of the Company, subject to the direction and control of the Board; (ii)
shall report directly to the Board, and shall perform the duties from time to
time delegated to the Executive by the Board or as customarily provided by
persons in similarly situated executive capacities; and (iii) shall devote his
full business time during normal business hours to the business and affairs of
the Company and shall use his best efforts to perform faithfully and
efficiently the responsibilities assigned to him hereunder, to the extent
necessary to discharge such responsibilities, except for: (A) time spent in
managing his personal, financial, and legal affairs, and serving on the boards
of directors of Exabyte, Realm Business Solutions, Web Marketing, and the
Boulder Economic Council, in each

 

 

case, only to the extent not materially interfering with the performance
of Executive’s responsibilities hereunder or, in the case of Executive’s
service on the boards of directors indicated above, such companies do not
engage in activities which are competitive with those of the Company; and (B)
the vacation to which the Executive is entitled pursuant hereto. In addition,
the Executive may serve on other boards or committees provided that the Board
is notified in writing by the Executive, the Board has not objected in writing
within thirty (30) days after receipt of such notice, and such service does not
otherwise materially interfere with the performance of Executive’s
responsibilities hereunder and such companies do not engage in activities which
are competitive with those of the Company.

               (b) Compensation.

                         (i) Signing Bonus. Effective October 15, 2004, the Company paid to the
Executive a signing bonus in the amount of One Hundred Fifty Thousand Dollars
($150,000).

                         (ii) Base Salary. During the Employment Period, the Executive shall
receive a minimum annual salary (pro rata for any partial year during the
Employment Period) equal to Three Hundred Seventy Five Thousand Dollars
($375,000) (the “Base Salary”), payable biweekly in accordance with the regular
payroll practices of the Company, which Base Salary shall be subject to
appropriate increase from time to time, as determined by the sole discretion of
the Board.

                         (iii) Annual Bonus Plan. The Executive shall be eligible to receive an
annual bonus (the “Annual Bonus”) for each of the Company’s fiscal years ended
during the Employment Period. Executive will be entitled to an Annual Bonus
in an amount equal to 100% of Executive’s Base Salary if the Company achieves
the revenue and earnings before interest, income taxes, depreciation and
amortization (“EBITDA”) targets set forth in the board-approved annual budget
(the “Budget”) for the applicable fiscal year. Executive will only be eligible
for an Annual Bonus of greater than 100% of the Executive’s Base Salary if the
Company exceeds the revenue and EBITDA targets in the Budget for the applicable
fiscal year, in which case the amount of such Annual Bonus shall be based on
the Annual Bonus targets established by the Board for such fiscal year. The
Company will determine the Budget and Annual Bonus targets for each fiscal year
as promptly as practicable following the end of the applicable fiscal year
(but, in any event, will not be obligated to do so prior to December 1 of such
fiscal year). Each Annual Bonus (or portion thereof) shall be paid in cash
promptly following delivery of audited financial statements of the Company to
the Board for the fiscal year for which the Annual Bonus (or pro rated portion)
is earned or awarded, unless electively deferred by the Executive pursuant to
any deferral programs or arrangements that the Company may make available to
the Executive. Notwithstanding anything to the contrary set forth above, but
subject to the other provisions of this Agreement (including Section 4(a)
hereof), Executive will be entitled to a minimum Annual Bonus of 50% of
Executive’s Base Salary for the fiscal year ended September 30, 2005 provided
Executive continues to be employed by the Company pursuant to this Agreement as
of the end of such fiscal year.

                         (iv) Stock Options. Holdings will grant stock options to the Executive
under the Company’s 2000 Stock Option Plan exercisable for an aggregate of
3,000,000 shares of Holding’s common stock at an exercise price of $2.25 per
share (the “Stock Options”). The

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Stock Options shall be evidenced by a separate option agreement with
Holdings consistent with the terms of the separate option agreements entered
into with the Company’s other senior executives (the “Option Agreement”) and
shall, subject to the terms of the Option Agreement, (i) vest in four (4) equal
installments over four (4) years, (ii) become fully vested upon the occurrence
of a Change of Control, (iii) provide that upon the Executive’s voluntary
termination of his employment or upon termination by the Company of the
Executive’s employment, the Executive shall have three hundred and sixty (360)
days following the Date of Termination to exercise any vested but unexercised
options, and (iv) shall otherwise become exercisable in the manner and at the
times provided in the Option Agreement. In addition, such Option Agreement
will provide that, if the Executive’s employment is terminated without Cause or
resigns for Good Reason, the Executive will, subject to the terms of the Option
Agreement, receive accelerated vesting of Stock Options covering the lesser of
1,125,000 shares or Options covering all remaining shares if the unvested Stock
Options cover fewer than 1,125,000 shares, and all other unvested Stock Options
will be cancelled.

For purposes of this Agreement, “Change of Control” means the first to occur of
the following events: (i) any sale, lease, exchange, or other transfer (in one
or a series of related transaction) of all or substantially all of the assets
of the Company to any person or group of related personas as determined
pursuant to 13(d) of the Securities Exchange Act of 1934, as amended, and the
regulations and interpretations thereunder (“Group”) other than one or more
members of the HMC Group, or (ii) the acquisition by any person or Group other
than one or more members of the HMC Group of the power, directly or indirectly,
to vote or direct the voting of securities having more than 50% of the ordinary
voting power for the election of directors of the Company.

For purposes of Section 2(b)(iii), “HMC Group” shall mean Hicks, Muse, Tate &
Furst Incorporated, its affiliates and their respective employees, officers,
partners and directors (and members of their respective families and trusts for
the primary benefit of such family members).

                         (v) Incentive, Savings, Retirement and Option Plans. Executive shall be
entitled to participate in all stock option, incentive, savings and retirement
plans, practices, policies and programs applicable generally to other employees
of the Company (“Investment Plans”) as determined by and at the discretion of
the Board.

                         (vi) Welfare Benefit Plans. Executive and/or the Executive’s family, as
the case may be, shall be eligible for participation in and shall receive all
benefits under welfare benefit plans, practices, policies and programs
(“Welfare Plans”) provided by the Company (including, without limitation,
medical, prescription, dental, vision, disability, salary continuance, employee
life, group life, accidental death and travel accident insurance plans and
programs) to the extent applicable generally to other executives of the
Company.

                         (vii) Expenses. In addition to the expenses required to be reimbursed
pursuant to Section 2(b)(x) hereof, Executive shall be entitled to receive
prompt reimbursement in accordance with the policies, practices and procedures
of the Company for all reasonable employment and business expenses (including
but not limited to reasonable travel and entertainment expenses) incurred by
the Executive in the business interests of the Company.

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                         (viii) Vacation and Holidays. Executive shall be entitled annually to
paid vacation of four (4) weeks per year and paid holidays in accordance with
the plans, policies, programs and practices of the Company for its employees.

                         (ix) Vehicle Allowance. The Company shall pay to the Executive One
Thousand Dollars ($1,000) per month for his monthly lease payments, fuel,
maintenance and insurance costs in respect of the Executive’s vehicle.

                         (x) Location; Living and Travel Expenses. The Executive understand that
his duties will require that he devote a substantial amount of his time in the
Company’s Austin, Texas headquarters on an ongoing basis. The Executive will
for the first six months during the Employment Period, spend no less than 80%
of his business time in Austin, Texas or traveling for other Company business,
and thereafter the Company and the Executive will review this requirement on an
ongoing basis based on the continuing needs of the Company and Executive’s
duties under this Agreement. The Company will establish a corporate apartment
in Austin, Texas for the Executive’s use, and shall reimburse the Executive for
his weekly travel expenses between Boulder, Colorado and Austin, Texas.

                         (xi) Other Benefits. The Executive shall be entitled to receive (in
addition to the benefits described above) other perquisites and benefits
applicable to other members of the senior executive management team in effect
from time to time and in accordance with the policies, practices and procedures
of the Company.

     3. Termination of Employment.

               (a) Death or Disability. The Executive’s employment shall terminate
automatically upon the Executive’s death during the Employment Period. If a
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of “Disability” set forth below), the Company shall give to
the Executive no less than fifteen (15) days written notice in accordance with
Section 12(b) hereof of its intention to terminate the Executive’s employment
based upon Disability, and in the event the Executive shall within such fifteen
(15) day period become able to perform his duties and obligations under this
Agreement, then the Executive’s employment shall not be terminated. In the
event the Executive does not resume his duties within such fifteen (15) day
time period as contemplated by the preceding sentence, the Executive’s
employment with the Company shall terminate effective on the receipt of such
notice by the Executive (the “Disability Effective Date”). For purposes of
this Agreement, “Disability” shall mean the Executive’s inability to perform
his duties and obligations hereunder for a period of six (6) consecutive
months, or for a total of six (6) months in any twelve (12) month period, by
reason of physical or mental illness, injury or incapacity as determined by a
physician selected by the Company or its insurers and acceptable to the
Executive or the Executive’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

               (b) Termination by the Company. The Company may terminate the Executive’s
employment during the Employment Period either with or without Cause. For
purposes of this Agreement, “Cause” shall mean (i) a breach by the Executive of
the Executive’s obligations under Section 2(a) (other than as a result of
Disability) which constitutes a continued material

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nonperformance by the Executive of his obligations and duties thereunder,
as reasonably determined by the Board, (ii) commission by the Executive of an
act of fraud upon, or willful misconduct toward, the Company, as reasonably
determined by the Board, (iii) a material breach by the Executive of his
obligations under Sections 6, 7, or 9 of this Agreement, (iv) the conviction of
the Executive of any felony unless the Board reasonably determines that the
Executive’s conviction of such felony does not materially affect the
Executive’s business reputation or significantly impair the Executive’s ability
to carry out his duties under this Agreement (provided that the Board shall
have no obligation to make such determination), or (v) the failure of the
Executive to carry out, or comply with, in any material respect any lawful
directive of the Board (as reflected in a Board resolution), which is not
remedied within thirty (30) days after receipt of written notice from the
Company specifying such failure.

                         (c) Voluntary Termination by the Executive. Notwithstanding anything in
this Agreement to the contrary, the Executive’s employment may be terminated
during the Employment Period by the Executive for any reason or no reason upon
delivery of a Notice of Termination (as defined in Section 3(e)) at least
thirty (30) days prior to the effectiveness of such termination; provided that
any termination by the Executive pursuant to Section 3(d) on account of Good
Reason shall not be treated as a voluntary termination under this Section 3(c).

                         (d) Termination for Good Reason. The Executive may terminate his
employment at any time for Good Reason. For purposes of this Agreement, “Good
Reason” shall mean (i) any material breach by the Company of its obligations
under this Agreement, (ii) other than under a circumstance that constitutes
Cause, any significant reduction or alteration, approved by the Board without
the Executive’s written consent, in the Executive’s title, duties or
responsibilities, or the Executive’s Base Salary and/or target Annual Bonus
opportunity (other than any across-the-board reduction in Base Salary approved
by 66-2/3% of the Company’s Board of Directors similarly effecting all
management personnel of the Company); provided, that any such reduction or
alteration in the Executive’s title, duties or responsibilities without the
Executive’s consent during the thirty-day (30) cure period applicable to
subparagraph (v) of Section 3(b) shall not constitute Good Reason; provided,
further, that any cure by the Executive during such thirty-day (30) period
shall entitle the Executive to reinstatement of his title, duties and
responsibilities, or (iii) the Company shall have required the Executive to
relocate his primary residence to a location more than 35 miles from Boulder,
Colorado; provided, however, that, for the avoidance of doubt, nothing in this
clause (iii) is intended to or shall be interpreted as modifying the provisions
of Section 2(x) hereof. Notwithstanding the above, the occurrence of any of
the events described above will not constitute Good Reason unless the Company
fails to cure any such event within thirty (30) days after receipt from the
Executive of the Notice of Termination (as defined in Section 3(e)).

                         (e) Notice of Termination. Any termination by the Company (for Cause or
otherwise), or by the Executive, shall be communicated by notice of termination
(a “Notice of Termination”) to the other party hereto given in accordance with
Section 12(b) hereof.

                         (f) Date of Termination. “Date of Termination” means (i) the date of
receipt of the Notice of Termination or any later date specified therein
pursuant to Section 3(e) hereof, as the case may be, and (ii) if the
Executive’s employment is terminated by reason of death or Disability, the date
of death of the Executive or the Disability Effective Date, as the case may be.

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     4. Obligations of the Company upon Termination.

               (a) Termination by the Company without Cause or Termination by the
Executive for Good Reason prior to January 5, 2005. If the Company terminates
the Executive other than for Cause, or other than in connection with death or
Disability as covered by Section 4(c) below or if the Executive terminates his
employment for Good Reason, in each case prior to January 5, 2005, the Company
shall (i) pay to the Executive all Accrued Benefits (as hereinafter defined) in
a lump sum in cash within ten (10) days after the Date of Termination and (ii)
permit Executive and/or Executive’s family, as applicable, to continue to
participate in, and be entitled to receive benefits under, all medical,
prescription, dental, and vision plans of the Company, and/or, at the Company’s
option, reimburse the Executive for all COBRA payments incurred by him, for a
period of eighteen (18) months following such Date of Termination, in each case
to the extent applicable to Executive at such Date of Termination. For the
avoidance of doubt, in the event Executive is terminated under the
circumstances described in the preceding sentence the Executive will not be
entitled to receive an Annual Bonus for the fiscal year ended September 30,
2005. For purposes of this Agreement, “Accrued Benefits” shall mean (i) all
Base Salary earned or accrued through the Date of Termination to the extent not
theretofore paid, (ii) all amounts payable to Executive pursuant to Section
2(b)(ix) that are accrued through the Date of Termination hereof to the extent
not theretofore paid, (iii) reimbursement for any and all monies advanced in
connection with the Executive’s employment for reasonable expenses incurred by
the Executive in accordance with Section 2(b)(vii) or 2(b)(x) hereof through
the Date of Termination, and (iv) all other payments and benefits to which the
Executive or the Executive’s family or other beneficiaries may be entitled
under the terms of any applicable compensation arrangement, benefit plan,
program or policy of the Company, including any compensation previously
deferred by the Executive (together with any accrued earnings thereon) and not
yet paid by the Company and any earned and accrued, but unused vacation pay, in
each case through the Date of Termination.

               (b) Termination by the Company without Cause or Termination by the
Executive for Good Reason on or after January 5, 2005. If the Company
terminates the Executive other than for Cause, or other than in connection with
death or Disability as covered by Section 4(c) below, or if the Executive
terminates his employment for Good Reason, in each case on or after January 5,
2005, the Company shall, subject to Executive’s execution and delivery of a
release in substantially the form attached hereto as Exhibit A (with such
changes as may reasonably required by the Company to reflect changes in law or
the circumstances surrounding the Executive’s release, the “Release”), which
Release has not been revoked by Executive pursuant to the terms thereof: (i)
pay to the Executive all Accrued Benefits (as hereinafter defined) in a lump
sum in cash within ten (10) days after the Date of Termination or, if later,
the date of Executive’s execution and delivery of the Release, (ii) permit
Executive and/or Executive’s family, as applicable, to continue to participate
in, and be entitled to receive benefits under, all medical, prescription,
dental, and vision plans of the Company, and/or, at the Company’s option
reimburse the Executive for all COBRA payments incurred by him, for a period of
eighteen (18) months following such Date of Termination, in each case to the
extent applicable to the Executive at such Date of Termination, (iii) pay to
the Executive a severance payment equal to eighteen (18) months of the
Executive’s then effective Base Salary, payable in a lump sum in cash within
ten (10) days after the Date of Termination or, if later, the date of
Executive’s execution and delivery of the Release, (iv) pay to the Executive a
prorated Annual Bonus

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payment in respect of the fiscal year in which the Date of Termination
falls calculated based upon 100% of the Executive’s then effective Base Salary
and (v) pay to the Executive any earned but unpaid Annual Bonus in respect of
any full fiscal year ended prior to the Date of Termination, payable in a lump
sum in cash at such time as such Annual Bonus otherwise would be payable
pursuant to Section 2(b)(iii) hereof (“Accrued Bonus”).

               (c) Disability or Death. If the Executive’s employment is terminated by
reason of the Executive’s death or Disability during the Employment Period, the
Company shall pay to Executive or his legal representatives, as applicable, (i)
all Accrued Benefits in a lump sum in cash within ten (10) days after the Date
of Termination and (ii) any Accrued Bonus, which shall be payable at such time
as such Annual Bonus otherwise would be payable pursuant to Section 2(b)(iii).
The Company shall have no further payment obligations to the Executive or his
legal representatives under this Agreement as a result of the Executive’s death
or Disability.

               (d) Cause. If the Executive’s employment shall be terminated by the
Company for Cause, or by the Executive other than for Good Reason, during the
Employment Period, the Company shall have no further payment obligations to the
Executive other than for payment of Accrued Benefits, and Accrued Bonus (which
shall be payable at such time as the Annual Bonus otherwise would be payable
pursuant to the last sentence of Section 2(b)(ii)).

     5. Full Settlement, Mitigation. In no event shall the Executive be
obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Executive under any of the provisions
of this Agreement and such amounts shall not be reduced whether or not the
Executive obtains other employment. Neither the Executive nor the Company
shall be liable to the other party for any damages in addition to the amounts
payable under Section 4 hereof arising out of the termination of the
Executive’s employment prior to the end of the Employment Period; provided,
however, that the Company shall be entitled to seek damages for any breach of
Sections 6, 7, or 9 hereof or criminal misconduct and further provided the
Executive shall be entitled, subject to the terms and provisions of the
Executive’s Release, to seek damages for any violation by Company of applicable
statutory employment law or for slander or libel.

     6. Confidential Information.

               (a) The Executive acknowledges that the Company and its affiliates
(including Holdings) have trade, business, and financial secrets and other
confidential and proprietary information including but not limited to sales and
marketing and product information and strategy, identity of suppliers,
displayers (collectively, the “Confidential Information”), and that the Company
and such affiliates (including Holdings) are providing to the Executive, and
will provide to the Executive during the Employment Period, with such
Confidential Information. As defined herein, Confidential Information shall
not include (i) information that is generally known to other persons or
entities who can obtain economic value from its disclosure or use and (ii)
information required to be disclosed by the Executive pursuant to a subpoena or
court order, or pursuant to a requirement of a governmental agency or law of
the United States of America or a state thereof or any governmental or
political subdivision thereof; provided, however, that the Executive shall take
all reasonable steps to prohibit disclosure pursuant to subsection (ii) above
at the sole cost and expense of Company.

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               (b) The Executive agrees (i) to hold such Confidential Information in
confidence and (ii) not to release such information to any person (other than
Company employees and other persons to whom the Company has authorized the
Executive to disclose such information and then only to the extent that such
Company employees and other persons authorized by the Company have a need for
such knowledge); provided, however, that, a disclosure made by the Executive in
connection with the Executive’s good faith performance of his employment shall
be deemed to have been authorized by the Company.

               (c) The Executive further agrees not to use any Confidential Information
for the benefit of any person or entity other than the Company.

               (d) This Section 6 shall survive any termination of the Agreement.

     7. Surrender of Materials Upon Termination. Upon any termination of the
Executive’s employment, the Executive shall immediately return to the Company
all copies, in whatever form, of any and all Confidential Information and other
properties of the Company and its affiliates (including Holdings) which are in
the Executive’s possession, custody or control.

     8. Successors.

               (a) This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive’s legal
representatives.

               (b) This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

     9. Non-Competition and Non-Solicitation.

               (a) The term of Non-Competition and Non-Solicitation (herein so called)
shall be for a term beginning on the date hereof and continuing until the
eighteen (18) month anniversary of the Date of Termination of this Agreement,
by either the Company or the Executive for any reason.

               (b) During the term of Non-Competition and Non-Solicitation, the Executive
will not, directly or indirectly, individually or as an officer, director,
employee, shareholder, consultant, contractor, partner, joint venturer, agent,
equity owner or in his capacity whatsoever, engage, participate, or become
employed by or render advisory or other services to or for any person or other
business enterprise which is engaged, directly or indirectly, (i) in the
business of designing, licensing or selling management information systems
and/or services or portions thereof (including business management, inventory
control, communications, estimating, database content and content delivery,
supply chain management, and business intelligence and analytics), catalog and
associated database and content management systems and services, data
warehousing systems and services, and database products and services (including
catalog, pricing, bar codes, images, labor, repair, interchange, service
specifications, service intervals, tune up specifications, tire and tire
fitment information), and of providing associated support, training, and other
related services, to the automotive aftermarket parts industry, the medium and

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heavy duty truck industry, the motorcycle industry, the marine industry
and the building supply industry or (ii) in any other significant business that
the Company, Holdings, or any of their respective subsidiaries is engaged in
from time to time during the Employment Period. Notwithstanding any other
provisions of this Agreement to the contrary, the foregoing covenant shall not
preclude (A) the Executive from continuing to serve on the Board of Directors
of Internet AutoParts, Inc. and (B) the Executive from making any investments
in the securities of any company, whether or not engaged in competition with
the Company, Holdings or any of their respective subsidiaries, to the extent
that such securities are actively traded on a national securities exchange or
in the over-the-counter market in the United States or any foreign securities
exchange and such investment does not exceed five percent (5%) of the issued
and outstanding shares of such company or give the Executive the right or power
to control or participate directly in making the policy decisions of such
company.

                         (c) During the term of Non-Competition and Non-Solicitation, except with
the prior written approval of the Board of Directors of the Company, the
Executive shall not, directly or indirectly (i) hire, attempt to hire, or
contact or solicit with respect to hiring any employee of the Company,
Holdings, or any of their respective subsidiaries (each, a “Company Employee”),
or otherwise induce, solicit, or attempt to induce any such Company Employee to
terminate his or her employment by the Company, Holdings, or any of their
respective subsidiaries or to become employed by any person or entity other
than the Company, Holdings, or any of their respective subsidiaries; (ii)
solicit, induce or attempt to induce any customer or supplier of the Company,
Holdings, or any of their respective subsidiaries with whom the Company,
Holdings or any of their respective subsidiaries does business to cease doing
business in whole or in part or alter in any way, terminate or breach his, her
or its relationship with the Company, Holdings, or any of their respective
subsidiaries; or (iii) authorize or assist in the taking of such actions by any
third party.

                         (d) During the term of Non-Competition and Non-Solicitation, the Executive
will not use the Executive’s access to, knowledge of, or application of
Confidential Information to perform any duty for any Competing Business; it
being understood and agreed to that this Section 9(d) shall be in addition to
and not be construed as a limitation upon the covenants in Section 9(b) hereof.

                         (e) The Executive expressly acknowledges and agrees that the covenants
contained in this Section 9 are in consideration of the covenants and
agreements of the Company and Holdings contained herein, including but not
limited to the agreement of the Company to provide the Confidential Information
and trade secrets to Executive pursuant to Section 6. The Executive further
expressly acknowledges and agrees that the duration and scope of this Section 9
are reasonable in light of the circumstances as they exist on the date of this
Agreement. However, should any court of competent jurisdiction determine that
any portion of this Section 9 is invalid, unreasonable, or unenforceable, the
remainder of this Section 9 shall not thereby be affected and shall be given
full effect without regard to the invalid provisions. If any court construes
any of the provisions of this Section 9, or any part thereof, to be
unreasonable because of the duration or scope of such provision, such court
shall have the power to reduce the duration or scope of such provision and to
enforce such provision as so reduced.

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     10. Effect of Agreement on Other Benefits. The existence of this
Agreement shall not prohibit or restrict the Executive’s entitlement to full
participation in the employee benefit and other plans or programs in which
employees of the Company are eligible to participate.

     11. Legal Fees and Expenses. The Company shall pay or cause to be paid
any and all reasonable attorneys’ fees and expenses incurred by Executive in
connection with the preparation and negotiation of this Agreement promptly
following the receipt of an invoice therefore (together with reasonable
supporting documentation) from the Executive.

     12. Miscellaneous.

               (a) This Agreement shall be governed by and construed in accordance with
the laws of the State of Texas without reference to principles of conflict of
laws. The captions of this Agreement are not part of the provisions hereof and
shall have no force or effect. Whenever the terms “hereof”, “hereby”,
“herein”, or words of similar import are used in this Agreement they shall be
construed as referring to this Agreement in its entirety rather than to a
particular section or provision, unless the context specifically indicates to
the contrary. Any reference to a particular “Section” or “paragraph” shall be
construed as referring to the indicated section or paragraph of this Agreement
unless the context indicates to the contrary. The use of the term “including”
herein shall be construed as meaning “including without limitation.” This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

               (b) All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 
	If to the Executive:

	 	A. Laurence Jones
	

	 	840 Sixth Street
	

	 	Boulder, Colorado 80302
	 
	 	 
	If to the Company or Holdings:

	 	Activant Solutions, Inc.
	

	 	804 Las Cimas Parkway
	

	 	Austin, Texas 78746
	

	 	Attn: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

               (c) If any provision of this Agreement is held to be illegal, invalid or
unenforceable under present or future laws effective during the term of this
Agreement, such provision shall be fully severable; this Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a portion of this Agreement; and the remaining provisions
of this Agreement shall remain in full force and effect and shall not be

10

 

affected by the illegal, invalid or unenforceable provision or by its
severance from this Agreement. Furthermore, in lieu of such illegal, invalid
or unenforceable provision there shall be added automatically as part of this
Agreement a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible and be legal, valid and enforceable.

               (d) The Company may withhold from any amounts payable under this Agreement
such Federal, state or local taxes as shall be required to be withheld pursuant
to any applicable law or regulation.

               (e) The Executive’s or the Company’s failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder shall not be deemed to be
a waiver of such provision or right or any other provision or right of this
Agreement.

               (f) The Executive acknowledges that money damages would be both
incalculable and an insufficient remedy for a breach of Section 6, 7, or 9 by
the Executive and that any such breach would cause the Company irreparable
harm. Accordingly, the Company, in addition to any other remedies at law or in
equity it may have, shall be entitled, without the requirement of posting of
bond or other security, to equitable relief, including injunctive relief and
specific performance, in connection with a breach of Section 6, 7, or 9 by the
Executive.

               (g) The provisions of this Agreement constitute the complete understanding
and agreement between the parties with respect to the subject matter hereof.

               (h) This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which, taken together, shall be
considered one and the same agreement.

[Remainder of page intentionally left blank. Signature page follows.]

11

 

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand
and, pursuant to the authorization from the Board of Directors of the Company,
the Company has caused this Agreement to be executed in its name on its behalf,
all as of the day and year first above written.

	 	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 	 	

	 	 	A. Laurence Jones
	 
	 	 	 	 
	 	 	COMPANY:
	 
	 	 	ACTIVANT SOLUTIONS INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:
	 	Peter Brodsky
	

	 	Title:	 	 
	

	 	 	 	

	 
	 	 	 	 
	 	 	HOLDINGS:
	 
	 	 	 	 
	 	 	HOLDINGS:
	 
	 	 	 	 
	 	 	ACTIVANT SOLUTIONS HOLDINGS INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:
	 	Peter Brodsky
	

	 	Title:	 	 
	

	 	 	 	

 

Exhibit A

FORM OF RELEASE

               This Release (this “Release”) dated as of           is made by and among
A. Laurence Jones (“Employee”), Activant Solutions Inc. (the “Company”) and
Activant Solutions Holdings Inc. (“Holdings”).

               WHEREAS, the parties hereto entered in that certain Executive Employment
Agreement, executed November    , 2004, to be effective as of October 7, 2004
(the “Employment Agreement”);

               WHEREAS, Employee’s employment with the Company has been terminated in a
manner described in Section 4(b) of the Employment Agreement;

               WHEREAS, pursuant to Section 4(b) of the Employment Agreement, it is a
condition precedent to the Company’s obligation to make the payments under
clauses (iii) and (iv) of Section 4(b), that Employee executes and delivers
this Release.

               NOW THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

     1. Release. Employee ON BEHALF OF HIMSELF, HIS SPOUSE, ATTORNEYS, HEIRS,
EXECUTORS, ADMINISTRATORS, AGENTS, ASSIGNS, AND ANY TRUSTS, PARTNERSHIPS AND
OTHER ENTITIES UNDER HIS CONTROL (TOGETHER, THE “EMPLOYEE PARTIES”), HEREBY
GENERALLY RELEASES AND FOREVER DISCHARGES each of the Company, Holdings, the
The Activant Solutions Inc. Severance Plan for Select Employees, their
respective predecessors, successors and assigns and their respective past and
present stockholders, members, directors, officers, employees, agents,
representatives, principals, insurers and attorneys (together the “Activant
Companies Parties”) from any and all claims, demands, liabilities, suits,
damages, losses, expenses, attorneys’ fees, obligations or causes of action,
KNOWN OR UNKNOWN of any kind and every nature whatsoever, and WHETHER OR NOT
ACCRUED OR MATURED, which any of them have or may have, arising out of or
relating to any transaction, dealing, relationship, conduct, act or omission,
OR ANY OTHER MATTERS OR THINGS OCCURRING OR EXISTING AT ANY TIME PRIOR TO AND
INCLUDING THE EXECUTION DATE OF THIS RELEASE (including, but not limited to,
any claim against the Activant Companies Parties based on, relating to or
arising under wrongful discharge, breach of contract (whether oral or written),
tort, fraud (including fraudulent inducement into this Release), defamation,
negligence, promissory estoppel, retaliatory discharge, Title VII of the Civil
Rights Act of 1964, as amended, any other civil or human rights law, the Age
Discrimination in Employment Act of 1967, Americans with Disabilities Act,
Employee Retirement Income Security Act of 1974, as amended, or any other
federal, state or local law relating to employment or discrimination in
employment, including, without limitation, the Texas Commission on Human Rights
Act, the Texas Worker’s Compensation Act and the Texas Payday Act) arising out
of or relating to Employee’s

13

 

employment by the Company or Holdings or the Employment Agreement or his
services as an officer or employee of any of the Company, Holdings or any of
their subsidiaries, or otherwise relating to the termination of such employment
or the Employment Agreement; provided, however, such general release will not
limit or release the Activant Companies Parities from their respective
obligations (i) under this Agreement, (ii) under the sections of the Employment
Agreement that by their respective terms survive termination, (ii) under the
Stock Option Agreement, dated October    , 2004 between Holdings and Employee,
(iii) in respect of Employee’s services as an officer or director of Company,
Holdings or any of their subsidiaries, pursuant to any director and officer
indemnification agreements or as provided by law or the certificates of
incorporation or by-laws (or like constitutive documents) of the Company,
Holdings or any of their subsidiaries or [(iv) insert at the time of
termination a description of any other agreements with the Company that survive
Executive’s termination]. Employee, ON BEHALF OF HIMSELF AND THE EMPLOYEE
PARTIES, hereby covenants forever not to assert, file, prosecute, maintain,
commence, institute (or sponsor or purposely facilitate any person in
connection with the foregoing), any complaint or lawsuit or any legal,
equitable or administrative proceeding of any nature, against any of the
Activant Companies Parties in connection with any matter released in this
Section 1, and represents and warrants that no other person or entity has
initiated or, to the extent within his control, will initiate any such
proceeding on his or their behalf.

     2. Acknowledgement of Waiver of Claims under ADEA. Employee acknowledges
that he is waiving and releasing any rights he may have under the Age
Discrimination in Employment Act of 1967 and that this waiver and release is
knowing and voluntary. Employee acknowledges that the consideration given for
this waiver and release is in addition to anything of value to which Employee
was already entitled. Employee further acknowledges that (a) he has been
advised that he should consult with an attorney prior to executing this
Release, (b) he has been given twenty-one (21) days within which to consider
this Release before executing it and (c) he has been given at least seven (7)
days following the execution of this Release to revoke this Release.

     3. Acknowledgment. Employee acknowledges that he understands the terms of
this Release and that he has executed this Release knowingly and voluntarily.
Employee acknowledges that, in consideration for the covenants and releases
contained herein, he will receive the payments as described in Section 4(b) of
the Employment Agreement, and that he would not receive such payment without
the execution of this Release.

     4. Modification. This Release may not be modified or amended except in
writing signed by the parties. No term or condition of this Release will be
deemed to have been waived except in writing by the party charged with waiver.
A waiver shall operate only as to the specific term or condition waived and
will not constitute a waiver for the future or act on anything other than that
which is specifically waived.

     5. Counterparts. This Release may be executed in any number of
counterparts, each of which shall be an original, but all of which, together
shall constitute one and the same instrument. Any counterpart of this Release
that has attached to it separate signature pages

14

 

which together contain the signature of all parties hereto shall for all
purposes be deemed a fully executed original. Facsimile signatures shall
constitute original signatures.

     6. Successors and Assigns. All the terms and provisions of this Release
shall be binding upon and inure to the benefit of the parties hereto and to
their respective successors and permitted assigns. Neither this Release nor
any rights or obligations hereunder may be assigned by the Employee, other than
by will or the laws of descent or distribution.

     7. Severability. All provisions of this Release are intended to be
severable. In the event any provision or restriction contained herein is held
to be invalid or unenforceable in any respect, in whole or in part, such
finding shall in no way affect the validity or enforceability of any other
provision of this Release. The parties hereto further agree that any such
invalid or unenforceable provision shall be deemed modified so that it shall be
enforced to the greatest extent permissible under law, and to the extent that
any court or arbitrator of competent jurisdiction determines any restriction
herein to be unreasonable in any respect, such court or arbitrator may limit
this Release to render it reasonable in the light of the circumstances in which
it was entered into and specifically enforce this Release as limited.

     8. Governing Law. This Release shall be governed by and construed in
accordance with the laws of the State of Texas without reference to principles
of conflict of laws.

     9. Construction. The parties agree that this Release was negotiated by
the parties and shall not be construed against any party.

[The Remainder of this Page is Intentionally Left Blank]

15

 

Schedule 1

     IN WITNESS WHEREOF, the Company and Holdings have executed this Release as
of the day and year first above written.

	 	 	 	 	 
	 	 	ACTIVANT SOLUTIONS INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

	 
	 	 	 	 
	 	 	ACTIVANT SOLUTIONS HOLDINGS INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

	 
	 	 	 	 
	Accepted and Agreed to:
	 	 	 	 

I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THE FOREGOING AGREEMENT, THAT I
UNDERSTAND ALL OF ITS TERMS, AND THAT I AM ENTERING INTO IT VOLUNTARILY. I
FURTHER ACKNOWLEDGE THAT I AM AWARE OF MY RIGHTS TO REVIEW AND CONSIDER THIS
AGREEMENT FOR 21 DAYS AND TO CONSULT WITH AN ATTORNEY ABOUT IT, AND STATE THAT
BEFORE SIGNING THIS AGREEMENT, I HAVE EXERCISED THESE RIGHTS TO THE FULL EXTENT
THAT I DESIRED.

	 
	

A. Laurence Jones

	 

	Date Signed:

	 

	STATE OF                  )

	 

	                                      )

	 

	COUNTY OF              )

     On
this          day
of        ,
200   , personally appeared before me, a
Notary Public, A. Laurence Jones, known (or proved) to me to be the person
whose name is subscribed to the above instrument who acknowledged that A
Laurence Jones executed the instrument.

Expiration:exv10w45

 

Exhibit 10.45

STOCK OPTION AGREEMENT

December 15, 2004

Mr. A. Laurence Jones

840 Sixth Street

Boulder, Colorado 80302

Re:     Grant of Stock Option

Dear Larry:

     The Board of Directors of Activant Solutions Holdings Inc. (the “Company”)
has adopted the Company’s Second Amended and Restated 2000 Stock Option Plan
(the “Plan”) for certain individuals, directors and key employees of the
Company and its Related Entities and certain non-employees. A copy of the Plan
is being furnished to you concurrently with the execution of this Option
Agreement and shall be deemed a part of this Option Agreement as if fully set
forth herein. Unless the context otherwise requires, all capitalized terms
used but not otherwise defined herein shall have the meanings given such terms
in the Plan and in that certain Executive Employment Agreement (the “Employment
Agreement”), executed as of the date hereof, to be effective as of October 7,
2004, among you, the Company and Activant Solutions Inc. (“Activant”);
provided, however, that to the extent definitions in the Plan are different
from definitions in the Employment Agreement, the definitions in the Employment
Agreement will control.

     1. The Grant.

     Subject to the conditions set forth below, the Company hereby grants to
you as a matter of separate inducement and not in lieu of any salary or other
compensation for your services, the right and option to purchase (the
“Option”), in accordance with the terms and conditions set forth herein and in
the Plan, an aggregate of 3,000,000 shares of Common Stock of the Company (the
“Option Shares”), at the Exercise Price (as hereinafter defined). As used
herein, the term “Exercise Price” shall mean a price equal to $2.25 per share,
subject to the adjustments and limitations set forth herein and in the Plan.
The Option granted hereunder is intended to constitute a Non-Qualified Option
within the meaning of the Plan; however, you should consult with your tax
advisor concerning the proper reporting of any federal or state tax liability
that may arise as a result of the grant or exercise of the Option.

     2. Exercise.

     (a) For purposes of this Option Agreement, the Option Shares shall be
deemed “Nonvested Shares” unless and until they have become “Vested Shares” in
accordance with the provisions hereof. Notwithstanding anything to the
contrary

 

 

contained in Section 6(c) of the Plan, the Option Shares shall become
“Vested Shares” in four equal, consecutive annual installments on October 7,
2005, October 7, 2006, October 7, 2007, and October 7, 2008. In addition,
notwithstanding anything to the contrary contained in Sections 6 or 10 of the
Plan:

     (i) upon (A) the occurrence of a Change of Control (as defined in the
Employment Agreement) all Nonvested Shares shall become Vested Shares and (B)
upon termination of your employment by Activant without Cause (as defined in
the Employment Agreement) or if you resign from Activant for Good Reason (as
defined in the Employment Agreement), the lesser of (1) 1,125,000 Option Shares
or (2) the number of Nonvested Shares under the Option at the time of such
termination shall become Vested Shares, in each case without the necessity of
action by the Committee; provided, however, that notwithstanding the foregoing,
if as a result of the foregoing the total sum of (x) the payments and benefits
to be paid or provided to (or with respect to) you under this Option Agreement
which are considered to be “parachute payments” within the meaning of Section
280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (y) any
other payments and benefits which are considered to be “parachute payments,” as
so defined, to be paid or provided to (or with respect to) you by the Company
in connection with such Change of Control or termination (the “Total Amount”)
exceeds the amount you can receive without having to pay excise tax with
respect to all or any portion of such payments or benefits under Section 4999
of the Code, then, if no stock of Holdings is readily tradable on an
established securities market or otherwise within the meaning of Section
280G(b)(5)(A)(ii)(I) of the Code and the regulations promulgated thereunder,
the accelerated vesting of such Nonvested Shares pursuant to this Section
2(a)(i) shall be subject to the requisite approval of the stockholders of
Holdings such that the amount of such payments attributable to such accelerated
vesting shall be exempt from the definition of “parachute payment” pursuant to
Section 280G(b)(5)(B) of the Code and the regulations promulgated thereunder,
and absent obtaining such stockholder approval such Nonvested Shares (or that
portion thereof described above) shall not become Vested Shares pursuant to
this Section 2(a)(i); and

     (ii) upon voluntary termination of your employment with Activant or upon
termination by Activant of your employment, you shall have three hundred and
sixty (360) days following the Date of Termination to exercise any vested but
unexercised Option Shares.

     (b) Subject to the relevant provisions and limitations contained herein
and in the Plan, you may exercise the Option to purchase all or a portion of
the applicable number of Vested Shares at any time prior to the termination of
the Option pursuant to this Option Agreement and the Plan. In no event shall
you be entitled to exercise the Option for any Nonvested Shares or for a
fraction of a Vested Share.

     (c) The unexercised portion of the Option, if any, will automatically, and
without notice, terminate and become null and void on October 7, 2014.

2

 

     (d) Any exercise by you of the Option shall be in writing addressed to the
Secretary of the Company at its principal place of business (a copy of the form
of exercise to be used will be available upon written request to the
Secretary), and shall be accompanied by a certified or bank check payable to
the order of the Company in the full amount of the Exercise Price of the shares
so purchased, or in such other manner as described in the Plan and established
by the Committee.

     3. Miscellaneous.

     (a) Except as provided in the last sentence of this Section 3(a), this
Option Agreement is subject to all the terms, conditions, limitations and
restrictions contained in the Plan, and in the event of any conflict or
inconsistency between the terms hereof and the terms of the Plan, the terms of
the Plan shall be controlling. Notwithstanding the foregoing, the terms of
Section 2(a) hereof shall control notwithstanding any conflict or
inconsistency between the terms thereof and the terms of the Plan.

     (b) This Option Agreement is not a contract of employment, and the terms
of your employment shall not be affected by, or construed to be affected by,
this Option Agreement, except to the extent specifically provided herein.
Nothing herein shall impose, or be construed as imposing, any obligation (i) on
the part of the Company or any Related Entity to continue your employment or
(ii) on your part to remain in the employ of the Company or any Related Entity.

     (c) Notwithstanding anything to the contrary herein or in the Plan, the
Company hereby waives its right to exercise the Purchase Option in respect of
the Option and the Option Shares pursuant Section 11 of the Plan.

     Please indicate your acceptance of all the terms and conditions of the
Option and the Plan by signing and returning a copy of this Option Agreement.

[The Remainder of Page Intentionally Left Blank]

3

 

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	ACTIVANT SOLUTIONS
	 	 	HOLDINGS INC.
	 
	 	 	 	 
	 	 	By: Peter Brodsky
	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

	 
	 	 	 	 
	ACCEPTED:
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	A. Laurence Jones
	 	 	 	 
	 
	Date: December  , 2004

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