Document:

Exhibit 4.5

 

FIRST AMENDMENT TO FORBEARANCE AGREEMENT

 

THIS FIRST AMENDMENT

TO FORBEARANCE AGREEMENT (the “Agreement”) is

made and entered into as of January 24, 2003, by and between GENERAL ELECTRIC

CAPITAL CORPORATION, for itself and as agent for certain participants (“Lender”)

and ATCHISON CASTING CORPORATION, a Kansas corporation (“Borrower”).

 

RECITALS

 

A.                                   Borrower

and Lender are parties to that certain Master Security Agreement dated as of

December 29, 1999, as amended by that certain Amendment No. 1 to Master

Security Agreement and Other Related Documents (“Amendment No. 1”) dated

as of February 25, 2000 (which, among other things, amended the effective date

of such Master Security Agreement to December 28, 1999; such Master Security

Agreement, as amended by Amendment No. 1, and as amended by that certain

Forbearance Agreement and Second Amendment to Master Security Agreement and

Note, dated as of October 17, 2002 (the “Forbearance Agreement”), and as

amended from time to time, is herein referred to as the “Master Agreement”).  Capitalized terms used herein and not

otherwise defined shall have the same definition as set forth in the

Forbearance Agreement or the Master Agreement.

 

B.                                     The

Forbearance Period has terminated as the result of a Variance Based

Termination.

 

C.                                     Lender

and Borrower desire to amend the Forbearance Agreement pursuant to the terms of

the Agreement.

 

AGREEMENT

 

In

consideration of the Recitals and of the mutual promises and covenants

contained herein, Lender and Borrower agree as follows:

 

1.                                       Amendment

to Forbearance Agreement. 

The Forbearance Agreement is amended as follows:

 

(a)  Section 1 of the Forbearance

Agreement is hereby deleted and the following is inserted therefor:

 

“1.  During the period (the “Forbearance

Period”) commencing on the Effective Date and ending on the earlier to

occur of (a) the date that any Forbearance Default (as defined in Section 7

hereof) occurs or (b) the Final Forbearance Date (as defined in Section 3

below), Lender will forbear in the exercise of its rights and remedies under

the Loan Documents with respect to the Existing Defaults and any other Events

of Default (collectively, the “Designated Defaults”), except as

set forth in the following sentence. 

Notwithstanding anything herein to the contrary, the Designated Defaults

shall not include (x) those Events of Default of the type or nature identified

in Section 7(b), (c), (e) (but only to the extent the same

relates to the maintenance or protection of Collateral), (g), (i),

(j), (k) and (m) of the Master Agreement, (y) any default

in

 

 

the

performance of obligations of the Borrower under this Agreement, and (z) any

default under the Mortgages arising out of Borrower’s failure to maintain or

protect the Real Estate Collateral.”

 

(b)  Section 3 of the Forbearance

Agreement and all of its subsections are hereby deleted and the following is

inserted therefor:

 

“3.  Final Forbearance Date.  The term “Final Forbearance Date”, as

used in this Agreement shall mean June 29, 2003.”

 

(c)  Section 7 of the Forbearance

Agreement and all of its subsections are hereby deleted and the following is

inserted therefor:

 

“7.  Default.  Each of the following shall constitute a “Forbearance

Default” hereunder:

 

(a)                                  Events of

Default.  The existence

of any

 

(i)  Event of Default which

occurs as a result of Borrower’s (A) insolvency or bankruptcy, or (B)

failure to make any payment as and when due under or pursuant to the Master

Agreement, Note or any other Loan Document; or

 

(ii)  Event of Default or

default under any Loan Document (other than a Designated Default, and other

than those Events of Default described in Section 7(a)(i) above),

provided that any such Event of Default or default shall not constitute a

Forbearance Default if the same is capable of being cured and is cured within

thirty (30) days of the date of first occurrence; or

 

(b)                                 Harris

Facilities Become Due. 

If any of the Harris Facilities or the obligations owed to the Harris

Lenders under or pursuant to the Harris Facilities, are accelerated or

otherwise become due and payable in full for any reason.”

 

2.                                       Conditions

Precedent to Effectiveness of Agreement.  The provisions set forth in Section 1

of this Agreement shall not be effective unless and until each of the following

conditions shall have been satisfied in Lender’s sole discretion or waived by

Lender, for whose sole benefit such conditions exist:

 

(a)                                  Costs and

Expenses.  Borrower shall

have paid to the Lender by wire transfer of good funds, its costs and expenses

(including Lender’s attorneys fees) incurred in connection with the preparation

of this Agreement and any other outstanding costs and expenses owing by

Borrower to Lender under the Loan Documents as of the date this Agreement is

executed.

 

(b)                                 Execution

and Delivery.  Borrower

shall have executed and delivered this Agreement.

 

2

 

3.                                       Representations

and Warranties.  Borrower

hereby represents and warrants to Lender as follows:

 

(a)                                  Recitals.  The Recitals in this Agreement are true and

correct in all respects.

 

(b)                                 Incorporation

of Representations.  All

representations and warranties of Borrower in the Master Agreement are

incorporated herein in full by this reference and are true and correct in all

material respects as of the date hereof; provided, however, that Schedule

2(f) of the Master Agreement is hereby replaced and updated by Schedule

2(f) attached to this Agreement.

 

(c)                                  Corporate

Power; Authorization. 

Borrower has the corporate power, and has been duly authorized by all

requisite corporate action, to execute and deliver this Agreement and to

perform its obligations hereunder and thereunder.  This Agreement has been duly executed and delivered by Borrower.

 

(d)                                 Enforceability.  This Agreement is the legal, valid and

binding obligations of Borrower, enforceable against Borrower in accordance

with its respective terms.

 

(e)                                  No

Violation.  Borrower’s

execution, delivery and performance of this Agreement does not and will not (i)

violate any law, rule, regulation or court order to which Borrower is subject;

(ii) conflict with or result in a breach of Borrower’s Articles of

Incorporation or Bylaws or any agreement or instrument to which Borrower is

party or by which it or its properties are bound; or (iii) result in the

creation or imposition of any lien, security interest or encumbrance on any

property of Borrower, whether now owned or hereafter acquired, other than liens

in favor of Lender.

 

(f)                                    Obligations

Absolute.  The obligation

of Borrower to repay the Loan, together with all interest accrued thereon, is

absolute and unconditional, and there exists no right of set off or recoupment,

counterclaim or defense of any nature whatsoever to payment of the Obligations.

 

4.                                       Effect

and Construction of Agreement. 

Except as expressly provided herein, the Loan Documents, including the

Master Agreement and the Forbearance Agreement (as amended hereby) shall remain

in full force and effect in accordance with their respective terms, and this

Agreement shall not be construed to:

 

(i)                                     impair

the validity, perfection or priority of any lien or security interest securing

the Indebtedness;

 

(ii)                                  waive

or impair any rights, powers or remedies of Lender under the Loan Documents

upon termination of the Forbearance Period, with respect to the Designated

Defaults or otherwise; or

 

(iii)                               constitute

an agreement by Lender or require Lender to extend the Forbearance Period, or

grant additional forbearance periods, or extend the term of the Note or the

time for payment of any of the Indebtedness, except as expressly set forth

herein.

 

3

 

In the event of any

inconsistency between the terms of this Agreement and the Loan Documents, this

Agreement shall govern.  Borrower

acknowledges that it has consulted with counsel and with such other experts and

advisors as it has deemed necessary in connection with the negotiation,

execution and delivery of this Agreement. 

This Agreement shall be construed without regard to any presumption or

rule requiring that it be construed against the party causing this Agreement or

any part hereof to be drafted.

 

5.                                       Expenses.  Borrower agrees to pay all costs, fees and

expenses of Lender (including the fees of Lender’s counsel) incurred by Lender

in connection with the negotiation, preparation, administration and enforcement

of this Agreement.

 

6.                                       Miscellaneous.

 

(a)                                  Agreement

as Debt Document.  Lender

and Borrower agree that this Agreement is a Debt Document, as defined in the

Master Agreement.

 

(b)                                 Further

Assurance.  Borrower

agrees to execute such other and further documents and instruments as Lender

may request to implement the provisions of this Agreement.

 

(c)                                  Benefit

of Agreement.  This

Agreement shall be binding upon and inure to the benefit of and be enforceable

by the parties hereto, their respective successors and assigns.  No other person or entity shall be entitled

to claim any right or benefit hereunder, including, without limitation, the

status of a third-party beneficiary of this Agreement.

 

(d)                                 Integration.  This Agreement, together with the Loan

Documents, including the Master Agreement and the Forbearance Agreement,

constitutes the entire agreement and understanding among the parties relating

to the subject matter hereof, and supersedes all prior proposals, negotiations,

agreements and understandings relating to such subject matter.  In entering this Agreement, Borrower

acknowledges that it is relying on no statement, representation, warranty,

covenant or agreement of any kind made by the Lender or any employee or agent

of the Lender, except for the agreements of Lender set forth herein.

 

(e)                                  Severability.  The provisions of this Agreement are

intended to be severable.  If any

provisions of this Agreement shall be held invalid or unenforceable in whole or

in part in any jurisdiction, such provision shall, as to such jurisdiction, be

ineffective to the extent of such invalidity or enforceability without in any

manner affecting the validity or enforceability of such provision in any other

jurisdiction or the remaining provisions of this Agreement in any jurisdiction.

 

(f)                                    Governing

Law.  This Agreement

shall be governed by and construed in accordance with the internal substantive

laws of the State of New York, without regard to the choice of law principles

of such state.

 

(g)                                 VENUE;

JURISDICTION; JURY TRIAL WAIVER.  LENDER, AND BORROWER EACH HEREBY IRREVOCABLY WAIVE THEIR RIGHT TO TRIAL

BY JURY IN ANY CONTROVERSY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE

MASTER AGREEMENT, AND/OR THE LOAN DOCUMENTS.

 

4

 

(h)                                 Counterparts;

Telecopied Signatures. 

This Agreement may be executed in any number of counterparts and by

different parties to this Agreement on separate counterparts, each of which,

when so executed, shall be deemed an original, but all such counterparts shall

constitute one and the same agreement. 

Any signature delivered by a party by facsimile transmission shall be

deemed to be an original signature hereto.

 

(i)                                     Survival.  All representations, warranties, covenants,

agreements, undertakings, waivers and releases of Borrower contained herein

shall survive the termination of the Forbearance Period and payment in full of

the Indebtedness of Borrower under the Loan Documents.

 

(j)                                     Amendment.  No amendment, modification, rescission,

waiver or release of any provision of this Agreement shall be effective unless

the same shall be in writing and signed by the parties hereto.

 

7.                                       Release

of Claims and Waiver. 

Borrower hereby releases, remises, acquits and forever discharges Lender

and Lender’s employees, agents, representatives, consultants, attorneys,

fiduciaries, servants, officers, directors, partners, predecessors, successors

and assigns, subsidiary corporations, parent corporations, and related

corporate divisions (all of the foregoing hereinafter called the “Released

Parties”), from any and all actions and causes of action, judgments,

executions, suits, debts, claims, demands, liabilities, obligations, damages

and expenses of any and every character, known or unknown, direct and/or indirect,

at law or in equity, of whatsoever kind or nature, whether heretofore or

hereafter arising, for or because of any matter or things done, omitted or

suffered to be done by any of the Released Parties prior to and including the

date of execution hereof, and in any way directly or indirectly arising out of

or in any way connected to this Agreement and the Loan Documents, including but

not limited to, claims relating to any settlement negotiations (all of the

foregoing hereinafter called the “Released Matters”).  Borrower acknowledges that the agreements in

this paragraph are intended to be in full satisfaction of all or any alleged

injuries or damages arising in connection with the Released Matters.  Borrower represents and warrants to Lender

that it has not purported to transfer, assign or otherwise convey any right,

title or interest of Borrower in any Released Matter to any other Person and

that the foregoing constitutes a full and complete release of all Released

Matters.

 

5

 

IN WITNESS

WHEREOF, the parties hereto have executed this Agreement as of the day and year

first above written.

 

	

   

  	

   

  	

  GENERAL

  ELECTRIC CAPITAL CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ Kevin G.

  Wortman

  	

   

  
	

   

  	

   

  	

   

  	

  Name: Kevin

  G. Wortman

  
	

   

  	

   

  	

   

  	

  Title: SVP,

  Strategic Asset Financing

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ATCHISON

  CASTING CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ Kevin T.

  McDermed

  	

   

  
	

   

  	

   

  	

   

  	

  Name Kevin

  T. McDermed

  
	

   

  	

   

  	

   

  	

  Title: V.P.

  & Treasurer

  
						

 

6Exhibit 10.34

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This

EMPLOYMENT AGREEMENT (“Agreement”) is executed as of the 28th day of

March 2002, by and between KEVIN D. AYERS, an individual (“Employee”), EN

POINTE TECHNOLOGIES, INC., a Delaware corporation (the “Company”), with

reference to the following facts:

 

A.            Employee is an individual possessing

unique management and executive talents of value to the Company and has been

its Vice President-Chief Financial Officer.

 

B.            The Company desires to continue the

employment of Employee as the Vice President-Chief Financial Officer for the

Company, and Employee desires to accept such employment, all on the terms and

conditions set forth in this Agreement.

 

AGREEMENT

 

In

consideration of the foregoing recitals and of the covenants and agreements

herein, the parties agree as follows:

 

1.               Term.  The Company hereby engages Employee to

perform his duties and render the services set forth in Section 2 for a

period commencing on March 16, 2002 (the “Effective Date”) and ending on July

16, 2003, (the “Employment Period”) and Employee hereby accepts said employment

and agrees to perform such services during the Employment Period. Unless this

Agreement is terminated pursuant to Section 4 or unless either party gives the

other written notice to the contrary prior to expiration date, this Agreement,

together with any changes which have occurred during the employment period then

expiring, shall automatically renew at the end of the Employment Period on a

month-to-month basis.

 

2.               Duties.

 

2.1.      Vice President/Chief Financial Officer: 

Performing executive work of major importance to the Company, with the

primary focus being the profitable management and profitable growth of the

Company.  During the Employment Period,

Employee shall devote his full business time and attention to performing his

duties as Chief Financial Officer of the Company. Such responsibility shall

include, but not be limited to:

 

2.1.1.                     Representing the Company to the financial and

investment communities.

 

2.1.2.                     Having custody of the funds and securities of

the Company and keeping full and accurate accounts of disbursements and

depositing all monies and other valuable effects in the name and to the credit

of the Company in such depositories as may be designated by the Board of

Directors.

 

 

2.1.3.                     Disburse the funds of the Company as may be

designated by the Board of Directors or Chief Executive Officer or President,

taking proper vouchers for such disbursements.

 

2.1.4.                     Render to the Chief Executive Officer,

President and Directors, whenever they may require it, an account of all his

transactions as Chief Financial Officer and of the financial condition of the

Company.

 

2.1.5.                     Manage the overall direction, coordination

and evaluation of all financial functions at the Corporate level.

 

2.1.6.                     Assist the Chief Executive Officer in

formulating and administering company and financial policies for the Company.

 

2.1.7.                     Participate in developing long-range

financial goals and objectives.

 

2.1.8.                     Establish or modify financial systems to

improve operations, management and profitability.

 

2.1.9.                     Selecting, supervising, training and

evaluating professional, technical and clerical subordinates in Corporate

Accounting and Finance..

 

2.1.10.               The above description is non-exhaustive.  Employee shall work out of the Company’s

headquarters location and shall report to the Company’s Chief Executive Officer

(“CEO”).

 

2.1.11.               Employee recognizes that the Company’s Board

of Directors may be required under its fiduciary duty to Company and to its stockholders

to eliminate the position of Vice President/Chief Financial Officer of Company

or to appoint a different person as such officer of Company.  The parties agree however, that any such

elimination or replacement of Employee by Company, other than pursuant to

Section 4 or Section 7.1 or 7.2.1 or 7.3.1 hereof, shall constitute a

termination of Employee’s employment hereunder by the Company without cause.

 

3.               Company Policies.  Employee will be subject to and agrees to

adhere to all of Company’s policies which are generally applicable to En

Pointe’s employees, including but not limited to, all policies relating to

standards of conduct, conflicts of interest and compliance with the Company’s

rules and obligations.  To the extent

there is a conflict between the terms of a general Company policy and a term of

this Agreement, the specific term of the Agreement shall govern.

 

4.               Change of Control. 

Notwithstanding the terms of Section 2 above, if the Company or a

significant portion thereof is sold or merged or undergoes a change of control

transaction (as defined in the form of Parent’s Stock Option Agreement, a copy

of which shall be made available upon Employee’s written request), this

Agreement shall survive consummation of such transaction and shall continue in

effect for the remainder of the Employment Period, but Employee shall serve as

an officer of the entity which succeeds to the business or a substantial

portion of the business of the Company, and in such case shall bear a suitable

title and perform the duties and functions of such office of such publicly

traded or privately held successor, consistent with those customarily performed

by an officer of such a unit,

 

2

 

division or entity

comparable to the then business of the Company, unit, division or entity.  Employee may be required to accept greater

or lesser responsibility by any successor, and agrees to fully cooperate and

assist in any resulting transition for up to the remainder of the Employment

Period; and any adjustments required of Employee to complete the transition to

any successor, unit, division or entity, shall not violate this Agreement so

long as “good reason” does not arise under Sections 8.2(iii).

 

5.               Conflict of Interest.

 

5.1.      Employee agrees that during the course of his employment, he will not,

directly or indirectly, compete with En Pointe Technologies in any way, nor

will Employee act as an officer, director, employee, consultant, shareholder,

lender or agent of any entity which is engaged in any business in which En

Pointe Technologies is now engaged or in which En Pointe Technologies becomes

engaged during the term of your employment. 

Any apparent conflict of interest must be disclosed to the En Pointe

Technologies Vice President- Human Resources for evaluation either at time of

employment or at the time that a conflict becomes known or suspected

 

5.2.      Employee further agrees that during the term of employment and for a

period of eighteen (18) months thereafter, employee will not, directly or

indirectly, compete unfairly or illegally with the Company in any way, or usurp

any Company opportunity in any way. Employee also agrees that during the term

of employment and for a period of eighteen (18) months thereafter, Employee will

not, directly or indirectly, whether on his own behalf or on behalf of another,

offer employment or a consulting agreement to any Company employee, nor will

Employee directly or indirectly, whether on his own behalf or on behalf of

another, actually employ or grant a consulting assignment to a Company

employee. Employee also agrees that during the term of employment and for a

period of eighteen (18) months thereafter, Employee will not, directly or

indirectly, whether on his own behalf or on behalf of another contact or

solicit any of Company’s clients to do business with any other entity other

than the Company.

 

6.               Compensation.  As

compensation for her services to be performed hereunder, the Company shall

provide Employee with the following compensation and benefits:

 

6.1.      Base Salary.  Employee’s base salary shall be $150,000.00

per year, paid semi-monthly and in accordance with such Company payroll

practices as are in effect from time to time, and subject to such withholding

as is required by law.

 

6.1.1.                     As used in this Agreement, “pre-tax net

income” shall mean positive pre-tax income of the Company (after including the

accrued cost of any bonuses paid to Company executives under this Section 6).

 

6.2.      Bonus.  Employee shall be eligible for

quarterly bonus at the sole discretion of the Company’s CEO and Board of

Directors.  Any quarterly bonus

considered under this Agreement shall be further subject to the condition that

the Company’s cumulative pre-tax net income (as defined in Section 6.1.1 above)

is positive at time of bonus

 

3

 

consideration.  The CEO may elect to waive the

aforementioned profitability requirement for bonus in any given quarter;

however, any such waiver shall be in writing and further subject to section

10.4 of this Agreement.  If any bonus is declared or paid, it shall be

subject to such withholding as is required by law.

 

6.3.      Benefits.

 

6.3.1.                     Vacation.  Employee shall be entitled to four (4) weeks

of paid vacation during each year of the Employment Period consistent with the

Company’s then policy for senior executive employees.  In the event Employee does not use such vacation, he shall

receive, upon termination of the Employment Period, vacation pay for all unused

vacation calculated at the base salary rate set forth herein.  However, Employee shall endeavor to take

vacation time in the year in which it is allocated to him.

 

6.3.2.                     Business Expenses.  The Company shall reimburse Employee for all

reasonable business expenses incurred by Employee in the course of performing services for the Company and in compliance

with procedures established from time to time by the Company.

 

6.3.3.                     Other Benefits. 

Company shall provide Employee with other such employment benefits -

such as 401(k) participation, medical insurance and disability insurance - on

the terms and to the extent generally provided by the Company to its employees.

 

6.3.4.                     Stock Options. Although no stock options are offered or

granted under this Agreement, it does not alter or negate any Stock Option

provisions made in prior agreements between this Employee and the Company.

 

6.3.5.                     Other Persons.  The

parties understand that other officers and employees may be afforded payments

and benefits and employment agreements which differ from those of Employee in

this Agreement; but Employee’s compensation and benefits shall be governed

solely by the terms of this Agreement, which shall supersede all prior

understandings or agreements between the parties concerning terms and benefits

of employment of Employee with the Company. 

Other officers or employees shall not become entitled to any benefits

under this Agreement.

 

7.               Termination.

 

7.1.      Termination by Reason of Death or Disability.  The Employment Period shall terminate upon

the death or permanent disability (as defined below) of Employee.

 

7.2.      Termination by Company.

 

7.2.1.                     The Company may terminate the Employment Period

for “cause” by written notice to Employee.

 

4

 

7.2.2.                     The Company may terminate the Employment Period

for any other reason, with or without cause, by written notice to Employee.

 

7.3.      Termination by Employee.

 

7.3.1.                     Employee may

terminate the Employment Period for “good reason” at any time by written notice

to the Company.

 

7.3.2.                     Employee may

terminate the Employment Period for any other reason by written notice to the

Company.

 

7.4.      Severance Pay.  In

the event the Employment Period is terminated by the Company without cause or

is terminated by Employee with good reason or if the Employment Period is

terminated because of the death or disability of Employee pursuant to

Section 7.1, upon the effectiveness of any such termination, the Company

shall be obligated to pay to Employee (or his executors, administrators or

assigns, as the case may be) all unpaid salary, benefits and bonuses (if any)

accrued through the date of effectiveness of such termination and, in addition,

a cash severance payment equal to six (6) months’ total base salary, at the

rates set forth herein, and such other benefits as may be required by law.

Severance pay shall be in exchange for executing a Settlement and General

Release of all claims.

 

8.               Certain

Definitions.  For purposes of this

Agreement:

 

8.1.      The term “cause” shall mean those acts

identified in Section 2924 of the California Labor Code, as that section

exists on the date of this Agreement, to

wit, any willful breach of duty by the Employee in the course of his

employment, or in case of his habitual neglect of his duty or continued

incapacity to perform it.

 

8.2.      The term “good reason” shall mean the

occurrence of one or more of the following events without the Employee’s

express written consent; (i) removal of Employee from the position and

responsibilities as set forth under Section 2 above; (ii) a material

reduction by the Company in the kind or level of employee benefits to which

Employee is entitled immediately prior to such reduction with the result that

Employee’s overall benefit package is significantly reduced; or, (iii) any

material breach by the Company of any material provision of this Agreement

which continues uncured for thirty (30) days following written notice thereof.

 

8.3.      The term “permanent disability” shall mean Employee’s incapacity due to physical

or mental illness, which results in Employee being absent from the performance

of his duties with the Company on a full-time basis for a period of six (6)

consecutive months.  The existence or

cessation of a physical or mental illness which renders Employee absent from

the performance of his duties on a full-time basis shall, if disputed by the

Company or Employee, be conclusively determined by written opinions rendered by

two qualified physicians, one selected by Employee and one selected by the

Company.  During the period of absence,

but not beyond the expiration of the Employment Period,

 

5

 

Employee

shall be deemed to be on an unpaid disability leave of absence.  During the period of such disability leave

of absence, the Board of Directors may designate an interim officer with the

same title and responsibilities of Employee on such terms as it deems proper.

 

9.               Employee Benefit

Plans.  Any employee benefit plans in

which Employee may participate pursuant to the terms of this Agreement shall be

governed solely by the terms of the underlying plan documents and by applicable

law, and nothing in this Agreement shall impair the Company’s right to amend,

modify, replace, and terminate any and all such plans in its sole discretion as

provided by law.  This Agreement is for

the sole benefit of Employee and the Company, and is not intended to create an

employee benefit plan or to modify the terms of any of the Company’s existing

plans.

 

10.         Miscellaneous.

 

10.1.                             Arbitration/Governing

Law.  To the fullest extent permitted by law, any

dispute, claim or controversy of any kind (including but not limited to tort,

contract and statute) arising under, in connection with, or relating to this

Agreement or Employee’s employment, shall be resolved exclusively by binding

arbitration in Los Angeles County, California in accordance with the commercial

rules of the American Arbitration Association then in effect.  The Company and Employee agree to waive any

objection to personal jurisdiction or venue in any forum located in Los Angeles

County, California.  No claim, lawsuit

or action of any kind may be filed by either party to this Agreement except to

compel arbitration or to enforce an arbitration award; arbitration is the

exclusive dispute resolution mechanism between the parties hereto.  Judgment may be entered on the arbitrator’s

award in any court having Jurisdiction. 

The validity, interpretation, effect and enforcement of this Agreement

shall be governed by the laws of the State of California.

 

10.2.                             Assignment.  This Agreement shall inure to the benefit of

and shall be binding upon the successors and the assigns of the Company, and

all such successors and assigns shall specifically assume this Agreement.  Since this Agreement is based upon the

unique abilities of, and the Company’s personal confidence in Employee,

Employee shall have no right to assign this Agreement or any of his rights

hereunder without the prior written consent of the Company.

 

10.3.                             Severability.  If any provision of this Agreement shall be

found invalid, such findings shall not affect the validity of the other

provisions hereof and the invalid provisions shall be deemed to have been

severed herefrom.

 

10.4.                             Waiver of Breach.  The waiver by any party of the breach of any

provision of this Agreement by the other party or the failure of any party to

exercise any right granted to it hereunder shall not operate or be construed as

the waiver of any subsequent breach by such other party nor the waiver of the

right to exercise any such right.

 

6

 

10.5.                             Entire Agreement.  This Agreement, together with the plans

referred to in Section 5, contains the entire agreement of the parties,

and supersede any and all agreements, wither oral or written, between the

parties hereto with respect to any employment by En Pointe Technologies in any

manner whatsoever.  Each party to this

Agreement acknowledges that no representations, inducements, promises or

agreements, orally or otherwise, have been made by any party, or anyone acting

on behalf of any party which are not embodied herein, and that no other

agreement, statement or promise not contained in this Agreement shall be valid

or binding.  This Agreement may not be

changed orally but only by an agreement in writing signed by the parties.

 

10.6.                             Notices.  Any notice required or permitted to be given

hereunder shall be in writing and may be personally served or sent by United

States mail, and shall be deemed to have been given when personally served or

two days after having been deposited in the United States mail, registered or

certified mail, return receipt requested, with first-class postage prepaid and

properly addressed as follows.  For the

purposes hereof, the addresses of the parties hereto (until notice of a change

thereof is given as provided in this Section 10.6) shall be as follows:

 

	

  If

  to Employee:

  	

   

  	

  Kevin

  D. Ayers

  13058 Sleepy Wind

  Moorpark, CA  93021

  
	

   

  	

   

  	

   

  
	

  If

  to the Company:

  	

   

  	

  En

  Pointe Technologies, Inc.

  100 N. Sepulveda Blvd., 19th Floor

  El Segundo, CA  90245

  Attention:  VP-HR

  

 

10.7.                             Headings.  The paragraph and subparagraph headings

herein are for convenience only and shall not affect the construction hereof.

 

10.8.                             Further Assurances.  Each of the parties hereto shall, from time

to time, and without charge to the other parties, take such additional actions

and execute, deliver and file such additional instruments as may be reasonably

required to give effect to the transactions contemplated hereby.

 

10.9.                             Counterparts.  This Agreement may be executed

simultaneously in any number of counterparts, each of which shall be deemed an

original but all of which together shall constitute one and the same

instrument.

 

10.10.                       Separate Counsel.  The Company has been represented by counsel

in the negotiation and execution of this Agreement and has relied on such

counsel with respect to any matter relating hereto.  The Employee has been invited to have his own counsel review and

negotiate this Agreement and Employee has either obtained his own counsel or

has elected not to obtain counsel.

 

7

 

IN

WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the day

and year first above written.

 

	

  “Employee”

  	

   

  	

  For “Company”

  EN POINTE

  TECHNOLOGIES, INC.,

  a Delaware corporation

  
	

  Name

  (Print):

  	

  Kevin D. Ayers

  	

   

  	

  Robert D. Chilman

  
	

  Signature:

  	

  /s/Kevin

  D. Ayers

  	

   

  	

  /s/Robert

  D. Chilman

  
	

  Title:

  	

  Vice President-Chief Financial Officer

  	

   

  	

  Vice President-Human Resources

  

 

8

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