Document:

EXHIBIT 10.2

 

EMPLOYMENT AGREEMENT

 

This
is an Employment Agreement (Agreement) between ZOMAX INCORPORATED, a Minnesota corporation, (hereinafter “Zomax”),
and Michael L. Miller (hereinafter
“Executive”).

 

Section 1

 

DEFINITIONS

 

1.                                      Definitions.

 

The
following capitalized terms used in this Agreement shall be defined as
follows:.

 

Agreement
shall mean this Agreement between Zomax and Executive.

 

Base
Salary shall mean the annual base salary payable to Executive
pursuant to Section 3.1 hereof, and “monthly Base Salary” shall mean the
Base Salary divided by twelve (12).

 

Board
shall mean the Board of Directors of Zomax.

 

Cause
shall mean termination of the Executive’s employment with Zomax by the Board
because of (1) gross misconduct, dishonesty or disloyalty which results in
material harm to Zomax; (2) willful and material breach of this Agreement by
Executive (other than Executive’s failure to perform his duties hereunder
resulting from incapacity due to physical or mental illness as set forth in Section 4.1c)
which has not been corrected by Executive within two weeks of receipt of notice
from Zomax of the occurrence of such event; (3) conviction or entry of a plea
of guilty or nolo contendere to any felony or to any misdemeanor involving
fraud, misrepresentation or theft; or (4) the failure of Executive to comply in
all material respects with policies and procedures adopted by the Board of
Directors and committees of the Board of Directors relating to and including,
but not limited to, governance, securities trading, corporate disclosure
practices and executive annual training and education.  No act, or failure to act, by Executive shall
be considered “willful” unless committed without good faith and without a
reasonable belief that the act or omission was in Zomax’s best interest.

 

A Change of Control shall be deemed to have occurred if (1)
any “person” (as such term is used in Section 13(d) and 14(d) of the
Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of Zomax representing
30% or more of the combined voting power (with respect to the election of
directors) of Zomax’s then outstanding securities; (2) at any time after the
execution of this Agreement, individuals who as of the date of the execution of
this Agreement constitute the Board (and any new director whose election to the
Board or nomination for election to the Board by Zomax’s stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in
office) cease for any reason to constitute a majority of the Board; (3) the
consummation of

 

 

a merger or consolidation
of Zomax with or into any other corporation, other than a merger or
consolidation which would result in the holders of the voting securities of
Zomax outstanding immediately prior thereto continuing to continue to hold
(either by remaining outstanding or by being converted into voting securities
of the surviving entity) more than 70% of the combined voting power (with
respect to the election of directors) of the securities of Zomax or of such
surviving entity outstanding immediately after such merger or consolidation; or
(4) the consummation of a plan of complete liquidation of Zomax or of an
agreement for the sale or disposition by Zomax of all or substantially all of
Zomax’s business or assets.

 

Change of
Control Payments shall mean any payment (including any
benefit or transfer of property) in the nature of compensation to or for the
benefit of Executive under any arrangement which is partially or entirely
contingent on a Change of Control, or is deemed to be contingent on a Change of
Control for purposes of Section 280G of the Code.  As used in this definition, the term “arrangement”
includes any agreement between Executive and Zomax and any and all of Zomax’s
salary, bonus, incentive, compensation or benefit plans, programs or
arrangements, and shall include this Agreement.

 

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

 

Company
shall mean Zomax Incorporated, a Minnesota corporation, any subsidiaries
thereof, and any successors or assigns, including any Successor.

 

Company
Product means any product, product line or service (including
any component thereof or research to develop information useful in connection
with a product or service) that is being designed, developed, manufactured,
marketed or sold by Zomax at the time of the termination of Executive’s
employment with Zomax or with respect to which Zomax has acquired, prior to
termination of Executive’s employment, Confidential Information which it
intends to use in the design, development, manufacture, marketing or sale of a
product or service.

 

Competitive
Product means any product, product line or service (including
any component thereof or research to develop information useful in connection
with a product or service) that is being designed, developed, manufactured,
marketed or sold by anyone other than Zomax and is of the same general type,
performs similar functions, or is used for the same purposes as a Company
Product.

 

Confidential
Information means any information or compilation of
information that Executive learns or develops during the course of his
employment with Zomax that derives independent economic value from not being
generally known, or readily ascertainable by proper means, by other persons who
can obtain economic value from its disclosure or use.  It includes but is not limited to trade
secrets, inventions, discoveries, and may relate to such matters as research
and development, manufacturing processes, management systems and techniques and
sales and marketing plans and information.

 

Good
Reason shall mean (1) a substantial reduction in the nature
or status of Executive’s responsibilities hereunder, including if Executive
should no longer serve as Executive Vice

 

2

 

President, or report to
the Chief Executive Officer of Zomax or an ultimate parent entity; (2) a
reduction by the Company in the Executive’s Base Salary or target bonus
opportunity except a reduction may be permitted if the Company reduces the base
salaries or target bonus opportunities of its senior executives; (3) the
failure to comply with the Section 3.3 of this Agreement; (4) a
requirement to relocate outside of the Minneapolis area; (5) failure by Zomax
to allow Executive to participate to the full extent in all plans, programs or
benefits in accordance with this Agreement; and (6) failure by a successor to
assume all of the terms and conditions of this Agreement.  Notwithstanding the foregoing, “Good Reason”
shall be deemed to occur only if such event enumerated in (1), (2), (3), (4) or
(5) above has not been corrected by Zomax within two weeks of receipt of notice
from Executive of the occurrence of such event, which notice shall specifically
describe such event.

 

Inventions
means any inventions, discoveries, improvements, ideas or works of authorship
(whether patentable or not and including those which may be subject to
copyright protection) generated, conceived, authored or reduced to practice by
Executive alone or in conjunction with others, during or after working hours,
while an employee of Zomax, and that:

 

(i)                                     are
derived in whole or in part from, or use, incorporate or represent any
improvement to any Invention or trade secret of Zomax; or

 

(ii)                                  result
from any work Executive performs for Zomax; or

 

(iii)                               use any of Zomax’s
equipment, supplies, facilities or trade secret information; or

 

(iv)                              otherwise
relate to Zomax’s products or Zomax’s present or reasonably foreseeable future
research or development.

 

Term
shall mean the term of Executive’s employment under Section 2.3 below.

 

Person
shall mean an individual, partnership, corporation, estate or trust or other
entity.

 

Successor shall be any entity acquiring
substantially all of the assets of Zomax or a corporation into which Zomax is
merged or with which it is consolidated.

 

Section 2

 

EMPLOYMENT AND TERMS OF AGREEMENT

 

2.1                               Employment.
 Zomax hereby agrees to continue to
employ Executive, and Executive hereby agrees to continue his employment as
Executive Vice President of Zomax, subject to the terms and conditions of this
Agreement and shall report directly to the Chief Executive Officer.   Executive understands and agrees that he
will immediately resign from any other Zomax directorships or offices upon
termination of his employment for any reason.

 

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2.2                               Duties.

 

a.                                       During
the term of his employment pursuant to this Agreement, Executive shall serve
Zomax faithfully and to the best of his ability and shall devote substantially
all his business and professional time, energy, and diligence to the
performance of the duties of such office and he shall perform such service and
duties in connection with the business and affairs of Zomax (i) as are
customarily incident to such office and (ii) as may reasonably be assigned or
delegated to him by the Chief Executive Officer.  Executive may engage in appropriate civic,
charitable or religious activities and devote a reasonable amount of time to
private investments or, with the consent of Zomax’s Board of Directors which
shall not be withheld unreasonably, serve on up to two (2) boards of directors
of other entities, in each case, as long as such activities and service do not
interfere or conflict with Executive’s duties and responsibilities to Zomax and
its affiliates.

 

b.                                      Subject
to the terms of this Agreement, Executive agrees to be subject to Zomax’s
control, rules, regulations, policies and programs.

 

2.3                               Term
of Employment.

 

a.                                       The
term of this Agreement shall be effective as of the date hereof and shall
extend until terminated as expressly provided herein.

 

b.                                      Unless
extended by mutual consent or as provided in Section 2.3(c) below, this
Agreement shall terminate one year after the effective date (the “Initial
Term”).

 

c.                                       On
and after the Initial Term, this Agreement shall be deemed extended from year
to year (“Extension Year”) unless, no later than three (3) months prior to the
end of the Initial Term or applicable Extension Year (as the case may be),
Zomax or the Executive shall have notified the other party in writing that it
or he does not elect to extend the Initial Term or applicable Extension Year
(as the case may be) past its then expiration date.

 

Section 3

 

COMPENSATION, BENEFITS AND OTHER ENTITLEMENTS

 

3.1                               Base
Salary.  As compensation for his
services to Zomax and as compensation for his confidentiality and
noncompetition agreements provided in Sections 7 and 9 of this Agreement,
Executive shall be paid a bi-weekly salary of $11,538.46.  The Base Salary may be increased or reduced; provided,
however, that any reduction shall be permitted only if the Company reduces
the base salary of its senior executives generally and such reduction shall
not exceed the average percentage reduction for all senior executives.  The base annual salary shall be inclusive of
all applicable income, Social Security, and other taxes and charges that are
required by law to be withheld by Zomax or that are requested to be withheld by
Executive.

 

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3.2                               Bonus.  In addition to the base salary payable to
Executive pursuant to Section 3.1 above, Executive will be eligible to
receive an annual bonus for each year of service under this Agreement.  During the Term, the bonus shall be targeted
at no less than 50% of Base Salary, unless the Company reduces the target bonus
of its senior executives generally and such reduction does not exceed
the average percentage reduction for all senior executives.  The criteria for payout of Executive’s bonus
and his target bonus opportunity for a particular year shall, subject to the
preceding sentence, be determined solely within the discretion of the Chief
Executive Officer, Board or Compensation Committee of Zomax and shall be
communicated to Executive no later than March 1 of each year.  The bonus earned by Executive, if any, will
be paid to Executive no later than March 1 of the following year.

 

3.3                               Long-Term
Incentives.  In
addition to the base salary and bonus payable to Executive pursuant to Sections
3.1 and 3.2, Executive will be eligible to receive annual equity based awards
for each year of service under this Agreement. 
The Compensation Committee in its sole discretion will determine whether
to grant to Executive any equity based awards in a particular year and the size
of such awards.  In making these
determinations, the Compensation Committee will take into account both the
Company’s and Executive’s performances.

 

3.4                               Benefits.  Executive shall be eligible to participate in
or receive benefits under all senior executive and employee benefit plans,
health plans, or arrangements, if any, made available from time to time by
Zomax to its senior executive employees as set forth in an employee manual or
otherwise, including but not limited to deferred compensation, supplemental
retirement and Section 401(k) plans, disability, life and other insurance
plans and programs, all hospitalization and health and welfare plans and
programs, and stock options, restricted share, incentive or other bonus
plans.  Subject to Sections 3.2 and 3.3,
Zomax retains the right to amend, modify or terminate any of its benefits or
benefit plans during the term of Executive’s employment.

 

3.5                               Miscellaneous
Benefits.  Zomax shall provide
Executive the following additional benefits:

 

a.                                       Reimbursement
of all ordinary and necessary expenses incurred by Executive for Zomax
business;

 

b.                                      Executive
agrees to be bound by the terms and conditions of the current vacation policy
that may be amended from time to time. 
On the termination of this Agreement or his employment for any reason,
Executive will be paid in cash in an amount equal to the value of unused
vacation days.  This amount will be paid
in full within five (5) days of the effective date of the termination of his
employment or this Agreement for any reason.

 

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Section 4

 

TERMINATION OF EMPLOYMENT

 

4.1                               Termination.  Notwithstanding any other provision of this
Agreement to the contrary or appearing to be to the contrary, Executive’s
employment shall terminate as follows:

 

a.                                       By
mutual written agreement of the parties.

 

b.                                      Upon
Executive’s death.

 

c.                                       Zomax
shall have the right to terminate Executive’s employment upon Executive’s
inability to perform the essential functions of his position due to physical or
mental disability as determined in the good faith judgment of the Chief
Executive Officer or the Board of Directors, provided such inability continues
for a period of ninety (90) consecutive days, one hundred twenty (120)
non-consecutive days in any twelve (12) month period, or longer period as may
be required by applicable law.

 

d.                                      Subject
to Sections 4.1(c) and 4.1(f), upon ninety (90) days’ written notice to
Executive by Zomax.

 

e.                                       Subject
to Sections 4.1(g) and 4.1(h), upon ninety (90) days’ written notice by
Executive to Zomax.

 

f.                                         Zomax
shall have the right to terminate Executive’s employment immediately for “Cause”
as defined in Section 1 above.

 

g.                                      Executive
shall have the right to resign from his employment immediately for “Good Reason”
as defined in Section 1 above.

 

h.                                  Executive
shall have the right to resign from his employment immediately for any reason
at any time during the one (1) year period after a Change of Control.

 

4.2                               Payment
Upon Termination of Employment for Cause or Resignation Without Good Reason.

 

a.                                       If
Executive’s employment is terminated by Zomax for Cause or if Executive resigns
from his employment hereunder other than for Good Reason, then Executive shall
only be entitled to receive the “Accrued Benefits.”  For purposes of this Agreement, the “Accrued
Benefits” shall mean any accrued and unpaid Base Salary through the termination
date, any other benefits under any plan or program in accordance with the terms
of such plan or program (including any vesting requirements) and benefits
provided in accordance with customary practices of Zomax at Executive’s expense
(e.g., hospitalization and medical insurance).

 

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b.                                      The
date of termination of Executive’s employment by Zomax under the circumstances
described in this Section 4.2 shall be effective immediately upon receipt
by Executive of written notice of termination. 
The date of resignation by Executive under the circumstances described
in this Section 4.2 shall be ninety (90) days after receipt by Zomax of
written notice of resignation.

 

4.3                               Payment
Upon Termination of Employment Without Cause, Termination or Resignation for
Good Reason, Termination or Resignation Following Change of Control, and
Failure to Extend Employment Agreement.

 

a.                                       If
Executive’s employment is terminated Without Cause, Executive resigns from his
employment hereunder for Good Reason, or Company fails to extend this Agreement
at the end of the Initial Term or an Extension Year, Executive shall be
entitled to the Accrued Benefits and to receive the following:

 

(i)                                     Executive
shall receive, within thirty (30) days after such termination, resignation, or
end of the Initial Term or an Extension Year without an extension, a lump sum
payment in an amount equal to 1.125 times his Base Salary in effect on the
effective date of such termination or resignation or as of the end of the
Initial Term or Extension Year.  Zomax
shall be entitled to deduct or withhold all taxes and charges which Zomax may
be required to deduct or withhold therefrom.

 

(ii)                                  With
respect to any outstanding stock options, SARs, restricted stock awards,
performance share awards or other equity-based awards granted to Executive, all
restrictions shall lapse immediately and such awards shall fully vest, all
outstanding options and SARs will become exercisable immediately, and all
performance share objectives shall be deemed to have been met.

 

(iii)                               Executive and his family
shall be entitled to continued participation in hospital and medical plans and
programs of Zomax at Zomax’s expense for a nine (9) month period following such
termination, resignation or end of Term subject to early termination of
participation upon Executive becoming entitled to comparable benefits on
subsequent employment.

 

(iv)                              Executive
shall be entitled to payment in full, upon the effective date of termination,
of all unpaid vacation allowances.

 

b.                                      If
Executive is terminated or resigns from his employment hereunder for any reason
within one (1) year after a Change of Control, Executive shall be entitled to
the Accrued Benefits and the following:

 

(i)                                     Executive
shall receive within thirty (30) days after such termination or resignation, a
lump sum payment in an amount equal to 1.5 times his Base 

 

7

 

Salary
in effect on the effective date of such termination or resignation.  Zomax or its successor shall be entitled to
deduct or withhold all taxes and charges which may be required to be deducted
or withheld therefrom.

 

(ii)                                  With
respect to any outstanding stock options, SARs, restricted stock awards,
performance share awards or other equity-based awards granted to Executive, all
restrictions shall lapse immediately and such awards shall fully vest, all
outstanding options and SARs will become exercisable immediately, and all
performance share objectives shall be deemed to have been met.

 

(iii)                               Executive and his family
shall be entitled to continued participation in hospital and medical plans and
programs of Zomax at Zomax’s expense for a twelve (12) month period following
such termination, resignation or end of Term subject to early termination of
participation upon Executive becoming entitled to comparable benefits on
subsequent employment.

 

(iv)                              Executive
shall be entitled to payment in full, upon the effective date of termination,
of all unpaid vacation allowances.

 

c.                                       The
date of termination of Executive’s employment Without Cause shall be ninety
(90) days after receipt by Executive of written notice of termination.  The date of termination or resignation by
Executive for any reason within one (1) year after a Change of Control or
Resignation for Good Reason shall be effective immediately upon receipt by
Zomax of written notice of resignation or the date of receipt by Executive of
the termination notice.  The date of
termination of Executive’s employment for failure to extend his employment
shall be the date on which the Initial Term or Extension Year ends.

 

d.                                      Anything in the Agreement to the contrary
notwithstanding, if any payment or benefit of any type to or for the benefit of
Executive by Zomax, by any of its affiliates, by any person who acquires
ownership or effective control or ownership of a substantial portion of Zomax’s
assets (within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended, and the regulations thereunder (the “Code”)) or by any
affiliate of such person, whether paid or payable or distributed or
distributable pursuant to the terms of the Agreement or otherwise (the “Payments”),
would, but for this sentence, be subject to the excise tax imposed by Section 4999
of the Code or any interest or penalties with respect to such excise tax (such
excise tax, together with any such interest or penalties, are collectively
referred to as the “Excise Tax”), then such Payment(s) shall be equal to the
Greater Amount.  The “Greater Amount”
shall be either (1) the largest portion of the Payment(s) that would result in
no portion of the Payment(s) being subject to the Excise Tax or (2) the
Payment(s) in full, whichever amount after taking into account all applicable
federal, state and local taxes and the Excise Tax (all computed at the highest
applicable marginal rate), results in the Executive’s receipt, on an after-tax
basis, of the greatest amount of the Payment(s).  If a reduction in payments or benefits is
necessary so that the Payment(s) equals the Greater Amount, reduction

 

8

 

shall
occur in the following order unless Executive elects in writing a different
order:  reduction of cash payments;
reduction of non-cash payments.

 

4.4.                            Termination
of Employment by Disability or Death.

 

a.                                       In
the event of termination of Executive’s employment pursuant to Section 4.1(b)
or 4.1(c), the Executive and/or his family (or Executive’s estate, as the case
may be), shall be entitled to receive from Zomax the following:

 

(i)                                     Executive
shall receive, within thirty (30) days after such termination, resignation, or
end of the Initial Term or Extension Year without an extension, a lump sum
payment in an amount equal to 1.125 times his Base Salary in effect on the
effective date of such termination or resignation or as of the end of the
Initial Term or Extension Year.  Zomax
shall be entitled to deduct or withhold all taxes and charges which Zomax may
be required to deduct or withhold therefrom.

 

(ii)                                  With
respect to any outstanding stock options, SARS, restricted stock awards,
performance share awards or other equity-based awards granted to Executive, all
restrictions shall lapse immediately and such awards shall fully vest, all
outstanding options and SARS will become exercisable immediately, and all
performance share objectives shall be deemed to have been met.

 

(iii)                               Executive and/or his
family shall be entitled to continue participation in hospital and medical
plans and programs of Zomax at Zomax’s expense for an eighteen (18) month
period.  Thereafter, Zomax shall pay to
Executive and/or his family the sum of $6,000 per year to be prorated for a
partial year, during the period of disability or, if later, until Executive
reaches age 62 or would have reached age 62 if he had survived; provided, that
the first payment shall be payable on the day following the expiration of such
eighteen (18) month period and any subsequent payments shall be payable on each
anniversary of such day.

 

(iv)                              Executive
(or, in the event of his death, Executive’s estate or his designated
beneficiary) shall be entitled to receive benefits under any other Company plan
or program (to the extent Executive is vested) in accordance with the terms of
such plan or program.  Should Executive’s
employment terminate pursuant to Section 4.1(c), he shall be entitled to
continued contributions under Zomax’s qualified profit sharing plan 401(k) to
the extent permitted in said Plan.

 

(v)                                 Executive
shall be entitled to payment in full, upon the effective date of termination,
of all unpaid vacation allowances.

 

9

 

b.                                      The
date of termination of Executive’s employment under the circumstances described
in this Section 4.4 shall be the date Executive’s employment is terminated
pursuant to Section 4.1(c) or the date of Executive’s death, as the case
may be.

 

5.                                      Legal
Fees and Expenses.  Zomax shall pay for all legal fees and
expenses incurred by Executive up to $5,000 in connection with the negotiation,
preparation, review, execution and interpretation of this Agreement and other
related documents (including any amendment of this Agreement).  Zomax shall directly pay Executive’s legal
counsel in cash within thirty (30) days of Zomax’s receipt of any applicable
invoice(s) for such legal fees and expenses.

 

Prior
to a Change of Control, if Executive is successful in seeking to obtain or enforce
any right or benefit provided by this Agreement from or against Zomax in a
proceeding before a court of competent jurisdiction or before an arbitrator or
arbitration panel, Zomax shall reimburse Executive for all reasonable legal
fees and expenses incurred by Executive in the pursuit of any employment right
or benefit.

 

If
after a Change of Control, Executive is successful in seeking to obtain or
enforce any right or benefit provided by this Agreement from or against a “Successor”
of Zomax before a court of competent jurisdiction or before an arbitrator or
arbitrator panel, Successor shall advance Executive for all reasonable legal
fees and expenses incurred by Executive in the pursuit of any employment right
or benefit.

 

6.                                      Assignment
of Inventions.  Executive agrees to
promptly disclose to Zomax in writing all Inventions; and all such Inventions
shall be the exclusive property of Zomax and are hereby assigned by Executive
to Zomax.  Further, Employee will, at
Zomax’s expense, give Zomax all assistance it reasonably requires to perfect,
protect, and use its rights to Inventions. 
In particular, but without limitation, Executive will sign all
documents, do all things, and supply all information that Zomax may deem necessary
or desirable to:

 

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

 

(ii)                                  enable
Zomax to obtain patent, copyright or trademark protection for Inventions
anywhere in the world.

 

The
obligations of this Section 6 shall continue beyond the termination of
employment with respect to Inventions conceived or made by Executive during the
period of his employment and shall be binding upon assigns, executors,
administrators and other legal representatives. 
For purposes of this Agreement, any Invention relating to the business
of Zomax on which Executive files a patent application within six (6) months
after termination of employment with Zomax shall be presumed to cover
Inventions conceived by Executive during the term of his employment, subject to
proof to the contrary by good faith, written and duly corroborated records
establishing that such Invention was conceived and made following termination
of employment.

 

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NOTICE:  Pursuant to Minnesota Statutes § 181.78,
Executive is hereby notified that this Section 6 does not apply to any
invention for which no equipment, supplies, facility, or trade secret
information of Zomax was used and which was developed entirely on Executive’s
own time, and (1) which does not relate (a) directly to the business of Zomax
or (b) to Zomax’s actual or demonstrably anticipated research or development,
or (2) which does not result from any work performed by the employee for Zomax.

 

7.                                      Confidential
Information.  Executive agrees not to
directly or indirectly use or disclose Confidential Information for the benefit
of anyone other than Zomax, either during or after employment, for as long as
the information retains the characteristics of Confidential Information
described in Section 1 above.

 

8.                                      Return
of Documents and Property.  All
documents and tangible items provided to Executive by Zomax, or possessed by or
created by Executive for use in connection with his employment, are the
property of Zomax and shall be promptly returned to Zomax on termination of
employment together with all copies, recordings, abstracts, notes or
reproductions of any kind made from or about the documents and tangible items
or the information they contain.

 

9.                                      Noncompetition.  In consideration of Executive’s rights under
this Agreement, Executive agrees that, from and after the Effective Date and
continuing until the one-year anniversary of termination or cessation of
Executive’s employment with Zomax, Executive will not, alone or in any capacity
with another legal entity:

 

(i)                                     directly
or indirectly, own any interest in, control, be employed by or associated in a
material manner with, or render services to (including but not limited to
services in research), any person or entity (or subsidiary, subdivision,
division, or joint venture of such entity) in connection with the design,
development, manufacture, marketing, or sale of a Competitive Product that is
sold or intended for distribution or sale in any geographic area in which Zomax
actively markets, or in which, to the Executive’s knowledge acquired through
his employment with Zomax, Zomax intends to actively market, a Company Product
of the same general type or function;

 

(ii)                                  directly
or indirectly, solicit any of Zomax’s then current employees for the purpose of
hiring them or inducing them to leave their employment with Zomax;

 

(iii)                               directly or indirectly,
solicit, attempt to solicit, interfere, or attempt to interfere with Zomax’s
relationship with its then current customers or potential customers (of which
Executive has knowledge acquired through his employment with Zomax), on behalf
of himself or any other person or entity engaged in the design, development,
manufacture, marketing, or sale of a Competitive Product; or

 

11

 

(iv)                              directly
or indirectly design, develop, manufacture, market, or sell any Competitive
Product that is sold or intended for distribution or sale in any geographic
area in which Zomax actively markets, or in which, to the Executive’s knowledge
acquired through his employment with Zomax, Zomax intends to actively market, a
Company Product of the same general type or function.

 

In
the event that Executive receives a payment from Zomax pursuant to Section 4.3
above, the reference to the “one-year anniversary” in the first sentence of
this Section shall be changed to the “eighteen-month anniversary”.

 

Notwithstanding
the foregoing in no event shall ownership of less than four percent (4%) of the
outstanding publicly-traded equity or debt securities of any issuer or less
than four percent (4%) of the outstanding interests in a private equity fund,
mutual fund or other pooled investment account, in each case, in which the
Executive does not actively participate in the management thereof, be
prohibited by this Section 9.

 

10.                               Breach
of Noncompetition Provisions of this Agreement.  In addition to any other relief or remedies
afforded by law or in equity, if Executive breaches Section 10 of this
Agreement, Executive agrees that Zomax shall be entitled, as a matter of right,
to injunctive relief in any court of competent jurisdiction.  Executive recognizes and hereby admits that
irreparable damage will result to Zomax if he violates or threatens to violate the
terms of Section 10 of this Agreement. 
This Section 10 shall not preclude the granting of any other
appropriate relief including, without limitation, money damages against
Executive for breach of Section 10 of this Agreement.

 

11.                               Indemnification.  The Company shall
indemnify Executive, for such expenses and liabilities, in such manner, under
such circumstances, and to such extent, as permitted by Minnesota Statutes, Section 302A.521,
as now enacted or hereafter amended.  The
right to indemnification includes the right to be paid by Zomax the expenses
incurred in defending any proceeding in advance of its final disposition.

 

Zomax agrees to
provide to the Executive director’s and officer’s liability insurance coverage
that provides the maximum coverage provided to its other officers and directors
in respect of any liabilities that might arise out of his service as a director
and officer of Zomax.  The parties
recognize and agree that determination as to the amount of such insurance that
is reasonable shall reflect not only the need to protect the Executive against
liability, but also the cost and availability of such insurance.

 

After termination
of employment, the Executive will be available to give testimony and assistance
in connection with any future litigation or arbitration proceedings arising
from activities of Zomax during the period of his employment.  Such testimony and assistance will be
scheduled at times and locations convenient for the Executive and not
inconsistent with his health and the responsibilities that he then may have in connection
with subsequent employment 

 

12

 

or other rendering of
services.  Zomax shall reimburse him for
all reasonable out-of-pocket travel and other expenses, including legal fees,
incurred by him in connection with his testimony and assistance pursuant to
this Section 11.  Such fees and
reimbursements shall be paid promptly after the Executive’s submission to Zomax
of statements in such reasonable detail as to enable Zomax to make such
payment.

 

12.                               Effect
of Other Obligations.  It is intended
that the obligation of the parties to perform the terms of this Agreement is
unconditional and does not depend on the performance or non-performance of any
terms, duties or obligations not specifically recited in this Agreement.

 

13.                               Binding
Agreement.  This Agreement shall be
binding upon, and inure to the benefit of Zomax, its successors and assigns,
but without the prior written consent of Executive, this Agreement may not be
assigned other than in connection with a merger or sale of substantially all
the assets of Zomax or similar transaction. 
The rights of the Executive hereunder to payments and benefits shall
inure to the benefit of, and be enforceable by, the Executive’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

 

14.                               Severability.  If the final determination of a court of
competent jurisdiction declares, after the expiration of the time within which
judicial review (if permitted) of such determination may be perfected, that any
term of provision hereof is invalid or unenforceable, (a) the remaining terms
and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable
term or provision shall be deemed replaced by a term or provision that is valid
and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision.

 

15.                               Amendment;
Waiver.  This Agreement may not be
modified, amended or waived in any manner except by an instrument in writing
signed by both parties hereto.  The
waiver by either party of compliance with any provision of this Agreement by
the other party shall not operate or be construed as a waiver of any other
provision of this Agreement, or of any subsequent breach by such party of a
provision of this Agreement.

 

16.                               Governing
Law.  All matters affecting this
Agreement, including the validity thereof, are to be governed by, interpreted
and construed in accordance with the laws of the State of Minnesota without regard
to the conflict of laws principles thereof.

 

17.                               Notices.  Any notice hereunder by either party to the
other shall be given in writing by personal delivery or certified mail, return
receipt requested.  If addressed to
Executive, the notice shall be delivered or mailed to Executive at the address
most recently communicated in writing by Executive to Zomax, or if addressed to
Zomax, the notice shall be delivered or mailed to Zomax at its executive
offices to the attention of the Chief Executive Officer of Zomax.  A notice shall be deemed given, if by
personal delivery, on the date of such delivery or, if by certified mail, on
the date shown on the applicable return receipt.

 

13

 

18.                               Supersedes
Previous Agreements.  This Agreement
supersedes all prior or contemporaneous negotiations, commitments, agreements
and writings with respect to the subject matter hereof, all such other
negotiations, commitments, agreements and writings will have no further force
or effect, and the parties to any such other negotiation, commitment, agreement
or writing will have no further rights or obligations thereunder.

 

19.                               Headings;
Construction.  The headings of
Sections and paragraphs herein are included solely for convenience of reference
and shall not control the meaning or interpretation of any of the provisions of
this Agreement.  This Agreement shall be
construed without regard to any presumption or other rule requiring
construction hereof against the party causing this Agreement to be drafted.

 

20.                               Benefit.  Subject to Section 13, nothing in this
Agreement, expressed or implied, is intended to confer on any person other than
the parties hereto, any rights, remedies, obligations or liabilities under or
by reason of this Agreement.

 

21.                               Release.  Executive
understands and agrees that he will be entitled to no severance payments under Section 4.3
and 4.4 above unless he executes and does not rescind a release agreement in
the form mutually agreed to be Zomax and Executive and that will provide for a
mutual and comprehensive release of claims by each party against the other
party, except for any of Executive’s contractual claims (including, without
limitation under this Agreement and any equity-based award agreements) or
claims for accrued benefits in favor of Executive.

 

22.                               No Mitigation.  Executive shall not be required to
mitigate the amount of any payment or benefit hereunder, nor shall any payment
or benefit be reduced by any earnings or benefits that Executive may receive
from another source.

 

IN
WITNESS WHEREOF, Zomax has caused this Agreement to be signed by its Chairman
of the Compensation Committee pursuant to the authority of its Board, and
Executive has executed this Agreement, effective as of April 14, 2005.

 

	
   

  	
  ZOMAX INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/
  Janice Ozello Wilcox

  	
   

  
	
   

  	
   

  	
  Chairman,
  Compensation Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
      /s/
  Michael L. Miller

  	
   

  
	
   

  	
  Michael L.
  Miller

  
					

 

14Exhibit
10.1

 

RETENTION AGREEMENT

 

This Agreement is between Beckman Coulter, Inc. (hereinafter “Beckman”)
and William H. May, Vice President, General Counsel and Secretary (hereinafter “Employee”).

 

The Employee indicated in February 2004 to John P. Wareham,
Chairman and Chief Executive Officer (hereinafter “CEO”) his desire to retire
as of the end of 2004. After discussion with the Chairman/CEO and Board of
Directors Organization and Compensation Committee, the CEO indicated to the
Employee that the Board of Directors and the CEO strongly desire to have the
Employee remain during the placement and transition of a new Chairman/CEO, January through
July 31, 2005 (the “Transition Period”).

 

In consideration of Employee’s willingness to remain during the Transition
Period, the parties agree to the following:

 

1.                    Employee shall continue to come to
his office at Beckman during the Transition Period.

 

2.                    Employee will assist in the
transition to a new General Counsel and provide support to the new General
Counsel.

 

3.                    Employee will provide support and
assistance to the new CEO and Chairman.

 

4.                    Employee will provide support and
assistance to the Board of Directors.

 

5.                    Employee will
not be at the office at Beckman from July 31, 2005 to year-end, but will
be available on an as needed basis to assist regarding paragraphs 2, 3, and 4
above.

 

6.                    Beckman will
pay Employee his regular salary through December 31, 2005.  Employee will receive and participate in all
employee and officer benefits through December 31, 2005.

 

7.                    Employee will retire from Beckman
on December 31, 2005.

 

8.                    Beckman will
pay Employee a bonus for 2005 based on full year pay at target.  The Supplemental Pension Plan will be amended
to include said 2005 bonus in the “final average earnings” for the Pension Plan
calculations.

 

9.                    Employee will
be eligible for the next stock option grant, or sooner at Company’s discretion,
in an amount approximately equal to that received by Employee in the Company’s
previous grant, or an equivalent value under any new or modified long-

 

 

term
incentive plan in place at that time. 
When options or equivalent is granted, the six-month vesting period will
be waived.

 

10.              Beckman agrees to
seek approval from the Organization and Compensation Committee of the Board the
vesting of Employee’s outstanding restricted stock, which was part of Employee’s
long-term compensation.

 

 

	
  /s/ JOHN P. WAREHAM

  	
   

  	
  /s/ WILLIAM H. MAY

  	
   

  
	
  John P. Wareham

  	
  William H. May

  
	
  Chairman

  	
  Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ SCOTT T. GARRETT

  	
   

  	
  Dated: April 11, 2005

  
	
  Scott T. Garrett

  	
   

  
	
  President and Chief Executive

  	
   

  
	
  Officer

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