Document:

crtn-ex101.htm

Exhibit 10.1

 

June 3, 2015

Donald E. Klumb

CEO, President, and CFO

Cartesian, Inc.

Dear Mr. Klumb:

This Separation Agreement (the “Agreement”) is entered into by and between you and Cartesian, Inc. (the “Company”), and confirms the agreement that has been reached with you in connection with your separation from employment as the Company's Chief Executive Officer, President, and Chief Financial Officer. In consideration of the promises and the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

ARTICLE I.  SEPARATION FROM EMPLOYMENT

1.1  Transition.  Your employment with the Company as its Chief Executive Officer, President, and Chief Financial Officer as well as all positions with the Company's affiliates as an employee or officer severed effective June 3, 2015 ("Separation Date").

1.2  Payments and Benefits.  In consideration of your execution of this Agreement and your compliance with its terms and conditions, the Company agrees to pay or provide to you, subject to the terms and conditions set forth in this Agreement, with the benefits described in this Section 1.2.  You acknowledge and agree that the benefits below shall be in full satisfaction of your obligations and the Company's obligations under the terms of your employment agreement entered into with the Company on September 16, 2014 and all applicable cash or equity incentive compensation plans and agreements.

As of the Separation Date, the Company will pay you:

(a)       Salary.  Salary and benefits accrued but unpaid up to the Separation Date, in accordance with the Company's regular payroll schedule.

(b)       Expenses.  Reasonable business expenses accrued and payable, if any, in accordance with the Company's rules and procedures.

 

 

 

  

  

  

 

June 3, 2015

Page 2 of 7

 

(c)       Separation Payment.  The total gross sum of three hundred fifty thousand dollars ($350,000.00), less appropriate payroll deductions, payable in installments as follows: (i) $100,000 payable 10 days after the Separation Date, (ii) $100,000 payable 30 days after the Separation Date, (iii) $100,000 payable 60 days after the Separation Date, (iv) $50,000 payable 90 days after the Separation Date, provided you execute and return this Agreement, and have not revoked this Agreement pursuant to the terms of Section 2.2 of this Agreement.

In addition to the above, the Company will also provide the following benefits:

(d)       Accrued Vacation.  As of the Separation Date, the Company will pay you the balance of any vacation days accrued but not yet taken as of the Separation Date in accordance with the Company's vacation cash-out policy, minus withholdings as required by law.  Payment of this amount is not contingent upon your signing this Agreement.

(e)       Benefits.  The Company will provide you with separate written notification of your right to continue coverage under the Company's group medical, dental, and vision insurance plans under COBRA, 29 U.S.C. §1161 et seq.  Other than your right to receive the Company’s 401(k) matching benefit, your right to continued participation in all other of the Company's benefit plans shall cease on the Separation Date; provided, however, that any accrued benefit you have under the Company's 401(k) retirement plan shall be paid in accordance with the terms of such plan.  To the extent permitted by applicable law and without subjecting the Company to any fines, penalty or excise taxes, the Company will pay the premium for any COBRA benefits you elect through the Company for a period of twelve (12) months from the Separation Date.  If a change in the law prevents the Company from paying your COBRA premiums directly to the insurer, then the Company will pay the cash value of any remaining COBRA premium payments to you on an after-tax basis.  Each monthly payment for COBRA coverage will be paid only so long as you or any of your dependents elect to continue health care coverage pursuant to COBRA.

(f)        Put Right for Company Stock.  Effective as of the Separation Date, the Company shall provide you with an irrevocable right and option to sell to the Company until March 15, 2016 up to 112,692 of your currently-owned shares of Company common stock ("Shares") at a purchase price of $4.50 per share.  In connection with each and any exercise of the Put Right, you agree to provide the Company with at least five (5) business days' notice before an eligible put date of each and any election to exercise the Put Right and that each and any election to exercise the Put Right will be for a minimum of 5,000 shares.  Such notice must provide the number of Shares you elect for the Company to purchase and the date you elect for the Company to purchase the Shares.  Once elected, any Put Right for the designated number of Shares shall be irrevocable unless the Company permits you to amend or revoke any submitted Put Right.  On the eligible put date(s) specified in the Put Right notice(s) to the Company, the Company shall pay you in cash or by certified, cashier's or other check acceptable to you, $4.50 for each Share purchased by the Company pursuant to the Put Right, less any amount of required tax or payroll withholding. Notwithstanding the prior sentence, if any payment to be made by the Company is prohibited by any applicable law, then such payment shall be made by the Company at the earliest time, and to the extent possible, when compliance with the law may be effected, and the Company agrees that it will execute all such documents and take all reasonable other steps as may be necessary to expedite and effectuate to the extent possible such compliance. You agree that you will be responsible for all tax implications resulting from the sale of your Shares to the Company in connection with any exercise of the Put Right.  Furthermore, you agree to indemnify and hold the Company harmless for any liability resulting from the tax obligations resulting from the sale of these shares.

 

  

  

  

 

June 3, 2015

Page 3 of 7

 

1.3  Forfeiture of All Equity Awards.  As of the Separation Date all unvested or unexercised awards under the Company's 1998 Equity Incentive Plan ("Equity Plan") shall be forfeited and expire notwithstanding any contrary terms set forth in any award agreement or the Equity Plan.

1.4  Unemployment Compensation.  The Company will not file a written protest to any claim for unemployment compensation benefits that you may file with the State of Kansas; however, the Company will report any wages or separation payments as required by Kansas law.

1.5  Board Member.  You will retain your position as a member of the Company's Board of Directors (the "Board") and receive any applicable remuneration provided to other Board directors.

ARTICLE II.  OTHER AGREEMENTS

2.1  General Release.  In exchange for the promises set forth herein, the sufficiency of which you hereby acknowledge, you, on behalf of yourself, your heirs, executors, representatives, successors, administrators and assigns (referred to collectively as “You” for purposes of this Section 2.1), hereby release and forever discharge the Company and any of its parent(s), subsidiaries, affiliates or predecessor entities and all current and former directors, officers, shareholders, employees, agents, insurers, attorneys, successors and assigns (referred to collectively as “Cartesian”), from any and all suits, claims, injuries, demands, debts, sums of money, damages, interest, attorneys’ fees, expenses, actions, causes of action, judgments, accounts, promises, contracts, agreements, and any and all claims of law or in equity, whether now known or unknown, which You now have or ever have had against them, or any of them, including, but not limited to, any claims under Title VII of the Civil Rights Act of 1964, as amended, the Americans With Disabilities Act, the Rehabilitation Act of 1973, the Family and Medical Leave Act, 42 U.S.C. §§ 1981, 1983 and 1985, the Employee Retirement Income Security Act, the Kansas Acts Against Discrimination, the Kansas Age Discrimination in Employment Act, and any other federal, state or local statute, regulation, ordinance or common law creating employment-related causes of action, and all claims related to or arising out of your employment or the separation of your employment with Cartesian.

2.2  Release of Age Discrimination Claims; 21 Days to Consider Agreement; 7-Day Revocation Period; and Consultation with Attorney.  This release also includes a release of any claims for age discrimination under the Age Discrimination in Employment Act, as amended (“ADEA”).  The ADEA requires the Company to advise you to consult an attorney prior to signing this Agreement.  You acknowledge that you have been given a period of at least 21 days in which to consider this Agreement.  You agree that any changes to this Agreement (whether material or not) must be made in writing and signed and dated by both parties.  You also agree that any negotiated and agreed-upon changes (whether material or immaterial) do not restart the running of the 21-day period.  You have the right to revoke this Agreement by giving written notice to Nancy Morrow, 7300 College Blvd., Suite 302, Overland Park, KS 66210, Nancy.Morrow@Cartesian.com, during the seven day period after you sign it.  You understand that this Agreement will not become effective or enforceable until the 7-day revocation period has expired.

2.3  Restrictions.

(a)       Non-Disclosure.  You agree to use best efforts and exercise utmost diligence to protect and to safeguard the trade secrets and/or any confidential or proprietary information concerning the Company or its business or any Affiliates of the Company (including, without limitation, trade secrets, plans, processes, customer lists, contracts and compilations of information, records and specifications) which became known to you as a result of your employment and which is not (independent of disclosure by you) public knowledge or general knowledge in the trade.  You agree not to disclose any of the Company's or any Affiliate's trade secrets and/or confidential information and/or proprietary information except as required by legal process, in which case, you agree to provide the Company with as much notice as is reasonably practicable in the event the Company wishes to intervene to protect its rights.  You agree not to use Company's or any Affiliate's trade secrets and/or confidential information and/or proprietary information, directly or indirectly, for your own benefit or for the benefit of another.  All files, records, documents, drawings, specifications, memoranda, notes, or other documents relating to the business of the Company or any Affiliate, whether prepared by you or otherwise coming into your possession, shall be the exclusive property of the Company.

 

 

 

  

  

  

June 3, 2015

Page 4 of 7

 

(b)       Non-Solicitation.  For a period of one (1) year from the execution of this Agreement, you shall not directly or indirectly, for yourself or for any third party, except as otherwise agreed to in writing by the Company:

 

(i)           contact, solicit, advise, consult or do business with any Customer (as hereinafter defined) with which you have had direct contact during, and arising from, your employment by the Company, for the purpose of causing such Customer to purchase, or otherwise obtain products or services which are similar to or in any way compete with the products or services sold or provided by the Company or an Affiliate, or

 

(ii)           induce, or attempt to induce, any Customer with which you have had direct contact during the term of, and arising from, your employment by the Company to cancel, diminish, decrease or curtail any business relationship, contractual or otherwise, with the Company or an Affiliate, or

(iii)           contact, solicit, induce or attempt to induce or influence any employee, independent contractor or agent of any Customer or Company or Affiliate to terminate his or her employment, engagement or contractual relationship with such Customer or Company or Affiliate, or

(iv)           employ or hire any person who is employed by the Company or Affiliate (whether as an employee or an independent contractor) with any business or other entity that is engaged in the industry in which Company or Affiliate is involved.

(c)       Covenants Against Competition.  For a period of one (1) year from the execution of this Agreement, you shall not within the Restricted Area (as hereinafter defined), directly or indirectly as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director or through any other kind of ownership (other than ownership of securities of publicly-held corporations of which you own less than five (5%) percent of any class of securities) or in any other representative or individual capacity:

(i)           assist or have an interest (whether or not such interest is active), in any person, firm, partnership, association, corporation or business organization, entity or enterprise that is or is about to become directly or indirectly engaged in, any business or activity (whether such enterprise is in operation or in the planning or development stage) that provides, sells, distributes or markets any products or services that compete in any manner with the business conducted by Company or an Affiliate.

 

 

  

  

  

 

June 3, 2015

Page 5 of 7

 

(ii)           enter into the employment of or act as an independent contractor or agent for or advisor or consultant to, any person, firm, partnership, association, corporation or business organization, entity or enterprise that is or is about to become directly or indirectly engaged in, any business or activity (whether such enterprise is in operation or in the planning or development stage) that provides, sells, distributes or markets any products or services that compete in any manner with the business conducted by Company or an Affiliate.

(d)       Definitions.  For purposes of this Section 2.3, the following definitions shall apply:

 

(i)           "Affiliate" shall mean any corporation, partnership, limited liability company, joint venture, or other entity or organization directly or indirectly controlling or controlled by or under direct or indirect common control with such other entity through the ownership of all or part of such entity.

(ii)           "Customer" shall mean any individual, corporation, partnership, joint venture or other entity, or successors thereof, which has either (i) purchased or contracted for services or products by or through the Company at any time within one (1) year prior to the separation of your employment with the Company, or (ii) has been directly solicited by the Company within six (6) months prior to the separation of your employment with the Company, regardless of whether you have had direct contact with such individual, corporation, partnership, joint venture or entity.

(iii)           "Restricted Area" shall mean collectively the United States of America.

2.4  Non-Disparagement.  You agree not to take any action or make any statement, written or oral, to any third party that disparages the character, reputation, business practices, competence or conduct of the Company, its affiliates, or its directors, officers, shareholders, managers, employees, agents, representatives, or strategic partners, including current customers and prospective customers of strategic partners.  The Company's Board of Directors and its CEO, President, CFO, and Senior Vice Presidents agree not to take any action or make any statement, written or oral, to any third party that disparages your character, reputation, business practices, competence or conduct.

2.5  References.  You agree to refer any prospective employers to the Company's Human Resources Department.  The Company's policy is to verify dates of employment, positions held and, if authorized by you, salary information.

ARTICLE III.  MISCELLANEOUS PROVISIONS

3.1  Severability.  You agree that should any of the provisions of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby.

3.2  Enforcement; Applicable Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the State of Kansas.  You agree that all disputes arising under or out of this Agreement shall be brought in courts of competent jurisdiction within the State of Kansas and you hereby consent to jurisdiction in courts located in the State of Kansas with respect to all matters arising out of or related to this Agreement.

 

 

  

  

  

 

June 3, 2015

Page 6 of 7

3.3  Entire Agreement; No Representations.  This Agreement constitutes the entire agreement between you and the Company concerning the terms and conditions of your separation from employment with the Company as an employee and supersedes all agreements, understandings, negotiations and discussions, whether oral or written, between you and the Company.  Notwithstanding the foregoing, in no event shall this provision prevent the parties from entering into any written consulting agreement executed by the parties contemporaneously with this Agreement or in the future; provided that, in no event shall any such consulting agreement supersede or modify the terms of this Agreement.  You agree that the Company has not made any statements or promises to you regarding the meaning or implication of any provision of this Agreement other than as stated herein.

3.4  Modification and Waiver.  This Agreement may be amended or modified only in a writing signed by you and an authorized representative of the Company.  The failure of you or the Company at any time to require the performance of any provision of this Agreement shall in no manner affect either party's right at a later time to enforce the same provision.

3.5  Non-Admission.  By entering into this Agreement, the Company does not admit any liability to you or any other person arising out of or attributable to your employment at the Company or the ending of that employment, and the Company expressly denies any and all such liability and denies it has engaged in any wrongful act.

3.6  Read, Understand and Voluntarily Signed.  You confirm that you have been supplied with and have read a copy of this Agreement and understand its terms, that you have been advised to consult with an attorney before signing it, that you understand the content and effect of this Agreement and that you enter into it voluntarily and not as a result of coercion, duress or undue influence.

3.7  Indemnification.  You agree to indemnify and hold the Company harmless from any and all expenses incurred, including but not limited to attorneys' fees, as the result of the assertion, after you execute this Agreement, of any claims, actions, causes of action, rights, demands, costs, expenses, compensation, liabilities or obligations which you have released and discharged in this Agreement.

3.8  Section 409A.  The intent of the parties is that payments and benefits under this Agreement (and all other Company plans and agreements) comply with Code Section 409A and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  Notwithstanding anything contained herein to the contrary, you shall not be considered to have severed employment with the Company for purposes of any payments under this Agreement which are subject to Code Section 409A until you have incurred a “separation from service” from the Company within the meaning of Code Section 409A.  Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Code Section 409A.  Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid an accelerated or additional tax under Code Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement (or any plans or agreements referenced herein) during the six-month period immediately following your separation from service shall instead be paid as soon as administratively practical after the date that is six months following your separation from service (or, if earlier, your date of death).  To the extent required to avoid an accelerated or additional tax under Code Section 409A, amounts reimbursable to you shall be paid to you on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to you) during one year may not affect amounts reimbursable or provided in any subsequent year. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on you by Code Section 409A or damages for failing to comply with Code Section 409A.

 

 

  

  

  

 

June 3, 2015

Page 7 of 7

3.9  Each Party the Drafter.  This Agreement and the provisions contained in it shall not be construed or interpreted for, or against, any party to this Agreement because that party drafted or caused that party's legal representatives to draft any of its provisions.

 

Please indicate your understanding and acceptance of this Agreement by signing and returning one copy to me at 7300 College Boulevard – Suite 302, Overland Park, KS  66210.  The other copy is for your records.

 

 

	 	 	 
	 	 	Sincerely,	 
	 	 	 	 
	
 

	
 

	/s/ Bob Currey	 
	 	 	 	 
	 	 	Bob Currey	 
	 	 	Chairman of the Board	 
	 	 	 	 

 

 

Accepted and Agreed:

 

 

	
/s/ Donald E. Klumb

	
Dated:  June 3, 2015

	 
	
Donald E. Klumbcrtn-ex102.htm

Exhibit 10.2

 

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT, made and entered into as of the 4th day of June, 2015 (the "Agreement"), by and between Cartesian, Inc., a Delaware corporation ("Company"), and Donald E. Klumb (the "Consultant").

RECITALS

WHEREAS, the Company and the Consultant seek to enter into an arrangement pursuant to which the Consultant will make himself available to provide to the Company advice, consultation and assistance on an as-needed basis with respect to certain matters pertaining to the overall management and business of the Company, as may be requested from time to time by the Company's Board of Directors ("Board"), its Chief Executive Officer, or its Chief Financial Officer; and

WHEREAS, the Consultant is willing to make himself available for such services pursuant to, and in accordance with, the terms of this Agreement; and

WHEREAS, the parties intend that each will have certain other rights and responsibilities with respect to such arrangement for the duration thereof, all as more fully set forth below;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, the Company and the Consultant agree as follows:

 

1.     Services Furnished.

 

(a)           During the Services Period (as defined in Section 2, below), the Consultant shall hold himself available to provide, and shall provide in a good and workmanlike manner in accordance with all applicable laws, rules, regulations, and standard industry practices, such advisory services relating to aspects of the business and operations of the Company as to which he gained specialized knowledge and experience in the course of his employment with the Company, as the Company or Board may reasonably request, including, but not limited to, assist with the Chief Financial Officer's transition, participate in communications to employees and customers, assist in transitioning the Consultant's relationships that are important to the Company, continue involvement in various Human Resources or corporate items and continue providing services in certain customer engagements (collectively, the "Consulting Services").

(b)           The Consultant may engage in business activities and may perform services, as an employee or independent contractor, other than for the Company, so long as such business activities and/or the performance of such services shall not impair the Consultant's availability to perform services for the Company as contemplated by this Agreement, it being understood that the Company shall not have the right to require, and shall not require, the delivery of Consulting Services in any manner that does, or would reasonably be expected to, interfere with the Consultant's ability to engage in other employment or self-employment .

 

 

 

  

  

  

 

June 4, 2015

Page 2 of 7

 

 

(c)           In the performance of any Consulting Services required of him hereunder, the Consultant shall have exclusive control over the manner of performance of such services, including, without limitation, the selection of methods, procedures, strategies and equipment to be employed in the performance of such services, and determination of the times, places and dates at which such services will be performed, subject to the right of the Company, through its President or Board, to establish limitations on the amount of reasonable expenses incurred by the Consultant that the Company will be obligated to reimburse, as set forth in Section 5(b).

2.     Term.  The term of this Agreement and the obligation of the Consultant to render Consulting Services hereunder shall commence as of June 4, 2015, and shall continue for successive three (3) month periods (each a "Services Period").  The initial Services Period shall commence as of June 4, 2015 and terminate on August 31, 2015 (the "Initial Period").  Unless terminated in accordance with Section 3, the Agreement will automatically renew on September 1, 2015, December 1, 2015, and March 1, 2016 for additional Services Periods (each a "Subsequent Period").  However, the automatic renewal provision will cease on May 31, 2016 and renewal of this Agreement beyond that date will require a written renewal agreement by the parties.

 

 

3.     Termination.  This Agreement may be terminated prior to May 31, 2016 with respect to any remaining future Services Period by: (i) either party with at least 15 days advance notice of any upcoming Services Period (i.e., notice of termination must be provided no later than August 16, 2015, November 15, 2015, or February 14, 2016 for the termination to become effective at the end of the current Services Period); (ii) the non-breaching party if the other party breaches any covenant, duty, or obligation under this Agreement and fails to cure such breach within 30 days after receiving written notice thereof from the non-breaching party; (iii) the Consultant's death or Disability (as defined below); or (iv) mutual agreement of the parties.   For purposes of this Agreement, "Disability" shall mean that the Consultant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

4.     Effect of Termination.

(a)           Continuing Obligations.  Upon the expiration or termination of this Agreement (whether by lapse of time, default, or otherwise): (i) the parties' rights and remedies that accrued prior to such expiration or termination shall not be prejudiced or waived including any continuing obligations under Sections 8, 9, and 11 of this Agreement; (ii) the Company shall, within 30 days of the date of termination, pay the Consultant any undisputed accrued obligations for services rendered through the date of termination and any accrued but unreimbursed expenses submitted in accordance with this Agreement; and (iii) any Section under this Agreement (including, but not limited to, Sections 4, 5(b), 7, 8, 9, 11 and 14) that, by their nature and context, are intended to survive the termination or expiration of this Agreement shall survive any such termination or expiration.

(b)   Return of Company Property.  Upon the expiration or termination of this Agreement, the Consultant must promptly deliver to the Company any and all tangible property of the Company, including without limitation, the laptop and printer provided by the Company and any software related thereto and the contents of any files stored therein.  The Company agrees to return the laptop and printer to the Consultant, but only after the Company verifies that all Company information has been removed in accordance with this provision.  The Consultant hereby affirms that he will return to the Company all property belonging to the Company (other than the laptop and printer) including, but not limited to keys, notes, memoranda, writings, files, reports, correspondence, tapes, disks, cards, and any other tangible product or document which was produced by, received by, or otherwise submitted to the Consultant during his employment with the Company, and the subsequent consulting period, and any copies thereof in the Consultant's possession (or capable of being reduced to the Consultant's possession), by the termination date of this Agreement.  Any remaining payments owed to the Consultant will be made under this Agreement only after all such property has been returned and the Company has verified that all information has been removed from the laptop.

 

 

  

  

  

 

June 4, 2015

Page 3 of 7

 

5.     Office Space; Expenses.

 

(a)           Office Space.  If and as may be required by the Consultant in order to perform Consulting Services hereunder, the Company will provide the Consultant with suitable office space at its offices at 7300 College Boulevard, Suite 302, Overland Park, Kansas, and with appropriate clerical and other administrative support and assistance.

 

(b)           Expenses.  The Company shall reimburse the Consultant for all reasonable expenses authorized in advance by the Company and incurred in connection with the Consulting Services.  The Consultant shall submit a weekly invoice to the Company for the pre-approved expenses during the previous calendar week, accompanied by vouchers, receipts and other details evidencing such expenses.  The Company shall pay the Consultant any undisputed amounts stated in such invoice (subject to reasonable adjustments consistent with the Company's travel reimbursement policies) within 15 days after the receipt of the invoice.

 

 

6.     Compensation.

 

(a)           Initial Period.  For services rendered in the Initial Period, the Company shall pay the Consultant $43,750 plus reimbursement of expenses pursuant to Section 5(b) of this Agreement in consideration for the Consulting Services contemplated by this Agreement.  The payment under this subsection shall be paid within 30 days after the Consultant provides an invoice for the Consulting Services following the execution of this Agreement.

(b)           Subsequent Periods.  For any Subsequent Period, the Company shall pay the Consultant $120,000 per 90-day period plus reimbursement of expenses pursuant to Section 5(b) of this Agreement for providing the Consulting Services pursuant to this Agreement.  The foregoing amount shall be paid in monthly increments of $40,000 at the beginning of each month provided the Consultant has submitted an invoice for such amount in advance.

 

7.     Independent Contractor.  In providing the Consulting Services under this Agreement, the Consultant will be an independent contractor and this Agreement shall not be construed to create any association, partnership, joint venture, employee or agency relationship between the Consultant and the Company for any purpose.  The Consultant shall have no authority (and shall not hold himself out as having authority) to bind the Company and the Consultant shall not make any agreements or representations on the Company's behalf without the Company's prior written consent.  The Consultant agrees that the Company has no obligation to withhold any income or payroll taxes on the Consultant's behalf and that the Consultant will be solely responsible for compliance with all state, federal, and local laws pertaining to the withholding and payment of taxes upon the remuneration provided for in this Agreement.  The Consultant shall be responsible for, and shall indemnify the Company against, all such taxes or contributions, including penalties and interest.  The Consultant will not participate in any vacation, group medical, life insurance, equity compensation or any other employee benefit plan or welfare plan of the Company other than as may be permitted by COBRA, 29 U.S.C. §1161 et seq.  Any persons employed or contracted by the Consultant in connection with the performance of the Consulting Services shall be the Consultant's employees or contractors and the Consultant shall be fully responsible for them and indemnify the Company against any claims made by or on behalf of any such employee or contractors.  For the purposes of this previous sentence, Consultant and the Company acknowledge and agree that any clerical or administrative support provided by the Company pursuant to Section 5(a) are employees of the Company.

 

 

 

  

  

  

 

June 4, 2015

Page 4 of 7

 

 

8.     Non-Disclosure.  During and after the term of this Agreement, the Consultant agrees to use best efforts and exercise utmost diligence to protect and to safeguard the trade secrets and/or any confidential or proprietary information concerning the Company or its business or any Affiliates (defined in Section 10) of the Company (including, without limitation, trade secrets, plans, processes, customer lists, contracts and compilations of information, records and specifications) which comes to the Consultant in the course of the Consultant's engagement and which is not (independent of disclosure by the Consultant) public knowledge or general knowledge in the trade.  The Consultant agrees not to disclose any of the Company's or any Affiliate's trade secrets and/or confidential information and/or proprietary information except as required in the course of the Consultant's employment with the Company or by legal process, in which case, the Consultant agrees to provide the Company with as much notice as is reasonably practicable in the event the Company wishes to intervene to protect its rights.  The Consultant agrees not to use Company's or any Affiliate's trade secrets and/or confidential information and/or proprietary information, directly or indirectly, for the Consultant's own benefit or for the benefit of another.  All files, records, documents, drawings, specifications, memoranda, notes, or other documents relating to the business of the Company or any Affiliate, whether prepared by the Consultant or otherwise coming into the Consultant's possession, shall be the exclusive property of the Company and shall be delivered to the Company and not reproduced and/or retained by the Consultant upon termination of this Agreement for any reason whatsoever or at any other time upon request of the Company.

9.     Non-Solicitation.  During the period of this Agreement, and for a period of one (1) year following the date this Agreement terminates in accordance with Section 3, the Consultant shall not directly or indirectly, for himself or for any third party, except as otherwise agreed to in writing by the Company:

(a)           contact, solicit, advise, consult or do business with any Customer (as defined in Section 10) with which the Consultant has had direct contact during, and arising from, services performed under this Agreement, for the purpose of causing such Customer to purchase, or otherwise obtain products or services which are similar to or in any way compete with the products or services sold or provided by the Company or an Affiliate, or

(b)           induce, or attempt to induce, any Customer with which the Consultant has had direct contact during the term of, and arising from, services performed under this Agreement to cancel, diminish, decrease or curtail any business relationship, contractual or otherwise, with the Company or an Affiliate, or

(c)           contact, solicit, induce or attempt to induce or influence any employee, independent contractor or agent of any Customer or Company or Affiliate to terminate his or her employment, engagement or contractual relationship with such Customer or Company or Affiliate, or

 

 

 

  

  

  

June 4, 2015

Page 5 of 7

 

 

(d)           employ or hire any person who is employed by the Company or Affiliate (whether as an employee or an independent contractor) with any business or other entity that is engaged in the industry in which Company or Affiliate is involved.

 

10.   Definitions.  For purposes of Sections 8, and 9 of this Agreement, the following definitions shall apply:

 

(a)    "Affiliate" shall mean any corporation, partnership, limited liability company, joint venture, or other entity or organization directly or indirectly controlling or controlled by or under direct or indirect common control with such entity through the ownership of all or part of such entity.

 

(b)           "Customer" shall mean any individual, corporation, partnership, joint venture or other entity, or successors thereof, which has either (i) purchased or contracted for services or products by or through the Company at any time during the term of this Agreement, or (ii) has been directly solicited by the Company within six (6) months prior to the termination of this Agreement, regardless of whether the Consultant shall have direct contact with such individual, corporation, partnership, joint venture or entity.

11.   Work Product.  The Consultant specifically hereby assigns to Company all rights and waives all rights (including without limitation, all intellectual property rights, moral rights, rights to be designated as the author of any work and rights to enforce such rights) in any and all work product suggested or generated by Consultant under this Agreement, including work product originated or conceived during the term of this Agreement but completed or reduced to writing thereafter (collectively "Work Product"), and all Work Product shall be and remain the exclusive property of the Company.  Additionally, and at no cost to the Company, Consultant shall execute and deliver any and all documents and take such other reasonable actions as the Company or the Company's client may reasonably require to convey, transfer, and assign any and all rights in the Work Product to the Company or the Company's client, including without limitation any and all copyright and patent rights.  The Consultant expressly agrees that, upon the Company's request, the Consultant shall cause any employees, agents, contractors, or subcontractors providing services related to this Agreement, to provide an executed assignment of Work Product in a form and content reasonably acceptable to the Company.

12.   Modification and Waiver.  This Agreement may be amended or modified only in a writing signed by the Consultant and an authorized representative of the Company.  The failure of the Consultant or the Company at any time to require the performance of any provision of this Agreement shall in no manner affect either party's right at a later time to enforce the same provision.

13.   Entire Agreement; No Representations.  This Agreement constitutes the entire agreement between the Consultant and the Company concerning the terms and conditions of the Consultant's consulting arrangement with the Company and the Consulting Services and supersedes all agreements, understandings, negotiations and discussions, whether oral or written, between the Consultant and the Company related to the Consulting Services contemplated hereunder.  Provided however, in no event shall this Agreement supersede or modify the terms of any written separation agreement executed by the parties.  The Consultant agrees that the Company has not made any statements or promises to him regarding the meaning or implication of any provision of this Agreement other than as stated herein.

 

 

 

  

  

  

 

June 4, 2015

Page 6 of 7

14.   Successors; Binding Agreement.  This Agreement shall be binding upon and inure to the benefit of the Consultant and his heirs and representatives and the Company and its respective successors and assigns.

15.   Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one agreement which is binding upon all the parties hereto, notwithstanding that all parties are not signatories to the same counterpart.

16.   Severability.  The parties agree that should any of the provisions of this Agreement be declared or determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby.

17.   Enforcement; Applicable Law; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the State of Kansas.  The parties agree that all disputes arising under or out of this Agreement shall be brought in courts of competent jurisdiction within the State of Kansas and the parties hereby consent to jurisdiction in courts located in the State of Kansas with respect to all matters arising out of or related to this Agreement.

18.   Notices.  Any communication required or permitted to be given to a party under this Agreement, including any notice, direction, designation, consent, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally, or five (5) calendar days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below or at such other address as either party may by written notice specify to the other party:

If to the Consultant:

 

Donald E. Klumb

[______]

[______]

If to the Company:

 

Cartesian, Inc.

7300 College Blvd., Suite 302

Overland Park, KS 66210

Attention:  Senior Vice President, Human Resources

19.   Survival.  Any provisions of this Agreement which, by its express terms or in practical effect, contemplates performance after the expiration of a Services Period or termination of this Agreement shall survive the expiration of the Services Period or termination of this Agreement.

20.   Assignment.  The Consultant shall not assign any rights, or delegate or subcontract any obligations, under this Agreement without the Company's prior written consent. Any assignment in violation of the foregoing shall be deemed null and void. The Company may freely assign its rights and obligations under this Agreement at any time. Subject to the limits on assignment stated above, this Agreement will inure to the benefit of, be binding on, and be enforceable against each of the parties hereto and their respective successors and assigns.

 

 

 

  

  

  

June 4, 2015

Page 7 of 7

 

 

21. Each Party the Drafter.  This Agreement and the provisions contained in it shall not be construed or interpreted for, or against, any party to this Agreement because that party drafted or caused that party's legal representatives to draft any of its provisions.

IN WITNESS WHEREOF, the parties have executed this Agreement or caused this Agreement to be executed by their duly authorized representatives, as of the day and year first above written.

 

 

 

	 	CARTESIAN, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Peter Woodward	 
	 	 	Name  Peter Woodward	 
	 	 	Title    Chief Executive Officer	 
	 	 	 	 

 

	 	CONSULTANT	 
	 	 	 	 
	
 

	
By: 

	/s/ Donald E. Klumb	 
	 	 	Donald E. Klumb

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]