Document:

Prepared by MERRILL CORPORATION

July 18, 2001

 

David Chapman

22 Wood Way

Cohasset,

MA  02025

 

Dear David:

 

This Letter Agreement (“Agreement”) is

intended to memorialize the understanding between you (“you” or “Employee”)

and Primix Solutions Inc., a Delaware corporation (together with its

successors, the “Company”), regarding certain

compensation arrangements established to provide an incentive for the

continuation of your employment with the Company.  This Agreement in no way establishes an employment contract.

1.     Severance Benefits

In the event that Employee’s employment with

the Company is terminated by the Company without Cause (as defined in Section 4

hereof) or by Employee for Good Reason (as defined in Section 4 hereof) (in

each such case, a “Qualified Termination Event”) at any

time on or after the date hereof, Employee shall be entitled to the following

severance and benefits:

(a)                Severance

Payment.  Employee shall be entitled

to a severance payment equal to the sum of (x) six months of Employee’s base

salary in effect on the date hereof or, if greater, six months of Employee’s

base salary in effect immediately prior to the effective date of termination of

Employee’s employment with the Company (the “Termination Date”)

plus (y) $25,000, in each case, less all applicable federal, state and local

taxes and withholdings (the sum of (x) and (y), the “Severance Payment”).  The Severance Payment will be payable in

equal bi-weekly installments over a period of six (6) months (the “Severance

Period”) in accordance with the Company’s normal payroll

schedule.

(b)                Health

Insurance.  Provided that Employee

timely and properly elects to continue to receive group health insurance

pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”),

the Company will for the Severance Period pay the share of the premium for such

health insurance coverage that is paid by the Company as of the Termination

Date for active and similarly-situated employees who receive the same type of

coverage (the “COBRA Payments”). 

The remaining balance of any premium costs during the Severance Period

and all premium costs after the Severance Period shall be paid by Employee for

so long as, and to the extent that, Employee remains eligible for COBRA

continuation coverage.

Notwithstanding the foregoing, the Company’s

obligation to pay the Severance Payment and the COBRA Payments shall be

conditioned upon, and subject to, the execution and delivery by Employee of a

termination agreement, including a general release of claims, in form and

substance reasonably acceptable to the Company.

2.     Qualified Stock Options

Upon the occurrence of a Transaction (as

defined in Section 4 hereof) or a Qualified Termination Event occurring prior

to the Closing Date, Employee shall be entitled to the following treatment of

stock options to purchase shares of common stock of the Company (“Common

Stock”) heretofore granted to him under the Company’s 1995 Stock

Plan or 1996 Stock Plan, each as amended (the “Stock Plans”), that

have not been terminated, cancelled or otherwise surrendered (collectively, the

“Qualified

Stock

Options”):

(a)                Any and all such Qualified Stock Options shall become

fully vested as of, and subject to, the closing date of the Transaction (the “Closing

Date”) or Termination Date of such Qualified Termination Event,

as applicable; and

(b)                Subject

to earlier termination in accordance with the terms of the stock option

agreements and the Stock Plans pursuant to which the Qualified Stock Options

were granted, Employee shall be entitled to exercise the Qualified Stock

Options for a period of five (5) years after the earlier to occur of (i) the

Closing Date and (ii) the Termination Date of such Qualified Termination Event;

provided that the foregoing provision shall in no way affect the terms

of a Qualified Stock Option if such terms would otherwise provide for a longer

period to exercise such Qualified Stock Options.

Employee acknowledges that

from and after the date hereof certain of the Qualified Stock Options (or

portions thereof) may no longer qualify as an incentive stock option within the

meaning of the Internal Revenue Code of 1986, as amended.  Except as expressly provided in this Section

2, all other provisions of the stock option agreements and the Stock Plans

pursuant to which the Qualified Stock Options were granted shall continue to

govern the terms of the Qualified Stock Options.

For purposes of this Section

2, the term “Qualified Stock Options” shall (i) include the additional stock

options to purchase shares of Common Stock to be granted to Employee under the

Stock Plans on or around the date hereof as identified under the heading “Refresher

Options” on Schedule A attached and (ii) exclude the additional

stock options to purchase shares of Common Stock to be granted to Employee

under the Stock Plans on or around the date hereof as identified under the

heading “Long-Term Options” on Schedule A attached hereto.

3.     Transaction Success Bonus

In consideration of and subject to the

continuation of employment with the Company by Employee and his contribution

toward the consummation of a Transaction, in the event that a Transaction is

consummated on or prior to January 18, 2003 (a “Qualified Transaction”),

the Employee shall be entitled to an additional cash bonus amount (the “Success

Bonus”) equal to 1.25% of the amount by which the Aggregate Net

Proceeds (as hereinafter defined) exceeds the Premium Price (as defined in Schedule

B attached hereto).  In the event

that a Qualified Transaction is consummated within forty-five (45) days after a

Qualified Termination Event, Employee shall be entitled to receive 100% of the

Success Bonus.  The Success Bonus (less

all applicable federal, state and local taxes and withholdings) shall be

payable in cash to Employee within thirty (30) days after the Closing Date.

As used herein “Aggregate Net Proceeds”

shall mean the total amount of cash paid or payable and the fair market value

of all property transferred or transferable directly or indirectly by an

acquiring Person to the Company or its stockholders in connection with a

Qualified Transaction.  Any securities

or other non-cash consideration to be delivered to the Company or its

stockholders in connection with a Qualified Transaction shall be valued in

accordance with the terms of the definitive document executed by the acquiring

Person and the Company or, if such terms are not set forth in such definitive

agreement, as otherwise reasonably determined in good faith by the Board of

Directors of the Company.

4.     Definitions

As used herein, the

following capitalized terms shall have the respective meanings set forth in

this Section 4:

“Cause” shall mean

conduct of Employee involving one or more of the following: (i) the substantial

and continuing failure of Employee, after notice thereof, to render services to

the Company in accordance with the terms or requirements of his employment;

(ii) disloyalty, gross negligence, willful misconduct, dishonesty, fraud or

breach of fiduciary duty to the Company which results in, or is reasonable

likely to result in, a material financial detriment to the Company or

substantially harms the Company’s reputation; (iii) deliberate disregard of the

rules or policies of the Company which results in a material financial

detriment to the Company or substantially harms the Company’s reputation; (iv)

breach of an employment-related agreement or other agreement with the Company,

including, without limitation, a breach of covenants not to compete, covenants

not to solicit employees or customers of the Company and covenants relating to

the protection of trade secrets or confidential information of the Company; or

(v) Employee’s conviction (including any pleas of guilty or nolo

contendre)

of any crime (other than ordinary traffic violations) which impairs Employee’s

ability to perform his duties.  For

purposes of this Agreement, a termination of Employee’s employment for Cause

shall not take effect unless the Company gives Employee written notice stating

in detail the particular act(s) or failure(s) to act that constitute the

grounds on which the proposed termination for Cause is based and Employee is

given ten (10) days after the date that such written notice is received in

which to cure such conduct, to the extent such cure is possible.

“Fair Market Value” of

one share of Common Stock on a given date shall mean the numerical average of

the fair market value per share of Common Stock over a period of twenty (20)

business days prior to and including such date.  For the purposes of determining the Fair Market Value:  (i) the fair market value per share of

Common Stock for any day shall mean the average of the closing prices of the

Company’s Common Stock sold on all securities exchanges on which the Common

Stock may at the time be listed or as quoted on the Nasdaq National Market, or,

if there have been no sales on any such exchange or any such quotation on any

day, the average of the highest bid and lowest asked prices on all such

exchanges or such systems at the end of such day, or, if on any day the Common

Stock is not so listed, the average of the representative bid and asked prices

quoted in the Nasdaq systems as of 4:00 p.m., Boston, Massachusetts time, or,

if on any day that the Common Stock is not quoted in the Nasdaq system, the

average of the highest bid and lowest asked price on such day in the domestic

over-the-counter market as reported by the National Quotation Bureau,

Incorporated, or any similar successor organization; and (ii) if at any time

the Common Stock is not listed on any securities exchange or quoted in the

Nasdaq system or the over-the-counter market, the fair market value per share

of Common Stock for any such day shall be determined in good faith by the Board

of Directors of the Company.

 

“Good Reason” shall

mean:

(A)  for periods prior to the Closing Date and

after the first (1st) anniversary of the Closing Date, the occurrence of any of

the following events:  (i)

a substantial adverse change in the nature or scope of Employee’s

responsibilities, authorities, powers, functions or duties; (ii) a reduction in

Employee’s annual base salary or bonus compensation (subject to applicable

performance requirements with respect to the actual amount of bonus

compensation earned) as in effect on the date hereof or as the same may be

increased from time to time; (iii) the Company's requirement that Employee

relocate his principal place of service to the Company to a location that is

more than fifty (50) miles from his current principal place of service to the

Company; and

(B) for the period

commencing on the Closing Date and ending on the first (1st) anniversary of the

Closing Date, any of the following actions taken without Employee's consent:

(i) an unwelcome change in the nature or scope of Employee’s responsibilities,

authorities, powers, functions or duties as in effect immediately prior to the

Closing Date, (ii) a reduction by the Company in the Employee's annual base

salary or bonus compensation (subject to applicable performance requirements

with respect to the actual amount of the bonus compensation earned) as in

effect immediately prior to the Closing Date; (iii) a substantial reduction in

the value of Employee's benefit package and/or perquisites from the value of

Employee's benefit package and/or perquisites as in effect immediately prior to

the Closing Date; (iv) the Company's requirement that the Employee relocate his

principal place of service to the Company to a location that is more than fifty

(50) miles from his principal place of service to the Company as in effect

immediately prior to the Closing Date, or the imposition of travel requirements

substantially more demanding of the Employee than such travel requirements as

in effect immediately prior to the Closing Date; (v) any material breach by the

Company of this Agreement that is not remedied by the Company within thirty

(30) days of written notice of such breach by Employee, or (vi) the failure of

the Company to assign this Agreement in connection with a Transaction to a

successor to the Company or the failure of a successor to the Company to

explicitly assume and agree to be bound by this Agreement.

“Parent” shall mean

any corporation (other than the

Company) in an unbroken chain of corporations ending with the Company if each

of the corporations other than the Company owns stock or other interests

possessing fifty percent (50%) or more of the total combined voting power of

all classes of stock in one of the other corporations in such chain.

“Person” shall mean

any individual, corporation, partnership (limited or general), limited

liability company, association, trust, joint venture, unincorporated organization

or any other entity or organization, governmental or otherwise.

“Subsidiary” shall

mean any corporation (other than the Company) in any unbroken chain of

corporations beginning with the Company if each of the corporations (other than

the last corporation in the unbroken chain) owns stock possessing fifty percent

(50%) or more of the total combined voting power of all classes of stock in one

of the other corporations in the chain.

“Transaction” shall

mean (i) a merger, reorganization or consolidation between the Company and

another Person (other than a Parent or Subsidiary of the Company) as a result

of which the holders of the Company’s outstanding voting stock immediately

prior to the transaction hold less than a majority of the outstanding voting stock

of the surviving entity immediately after the transaction, (ii) the sale of all

or substantially all of the assets of the Company to an unrelated Person, (iii)

the direct or indirect sale or exchange in a single or series of related

transactions by the stockholders of the Company of more than a majority of all

of the outstanding voting stock of the Company to an unrelated Person as a

result of which the holders of the Company’s outstanding voting stock

immediately prior to the transaction hold, directly or indirectly, less than a

majority of the outstanding voting stock of the Company immediately after the

transaction, or (iv) a single or a series of related transactions by the

Company and/or its stockholders with an unrelated Person or Persons as a result

of which such Person or Persons acting in concert have the right to control or

elect a majority of the Board of Directors of the Company.

5.     Notices, Acknowledgements and Other Terms

You are advised to consult

with an attorney before signing this Agreement.  This Agreement is the entire agreement between you and the

Company and, with the exception of the Employee Agreement dated as of August

20, 1996  (which shall remain in full

force and effect), all previous agreements, or promises between you and the

Company are superseded, null, and void.

By signing this Agreement, you acknowledge

that you are doing so voluntarily.  You

also acknowledge that you are not relying on any representations by any

representative of the Company concerning the meaning of any aspect of this

Agreement.

In the event of any dispute, this Agreement

will be construed as a whole, will be interpreted in accordance with its fair

meaning, and will not be construed strictly for or against either you or the

Company.  The law of The Commonwealth of

Massachusetts will govern any dispute about this Agreement, including any

interpretation or enforcement of this Agreement, without giving effect to the

conflict of laws principles thereof.  In

the event that any provision or portion of a provision of this Agreement shall

be determined to be unenforceable, the remainder of this Agreement shall be

enforced to the fullest extent possible as if such provision or portion of a

provision were not included.  This Agreement

may be modified only by a written agreement signed by you and an authorized

representative of the Company.

This Agreement shall be effective as of the

date first set forth above.

[END OF TEXT]

 

COMPANY:

 

PRIMIX SOLUTIONS INC.

 

 

	

  By:

  	

  /s/

  Lennart Mengwall

  	

   

  
	

   

  	

  Name:  Lennart Mengwall

  	

   

  
	

   

  	

  Title:

  Chief Executive Officer

  	

   

  

 

 

ACKNOWLEDGED AND AGREED:

 

 

 

EMPLOYEE:

 

 

	

  By:

  	

  /s/

  David Chapman

  	

   

  
	

   

  	

  Signature

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  David Chapman

  	

   

  
	

   

  	

  Print

  Name

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Chief Financial Officer

  	

   

  
	

   

  	

  Title

  	

   

  

 

 

SCHEDULE A

 

Refresher Options:

 

	

  Option Grant Date

  	

   

  	

  Number of

  Shares of

  Common Stock

  	

   

  	

  Exercise

  Price

  Per Share

  	

   

  	

  Applicable

  Stock

  Plan

  	

   

  
	

  July 18,

  2001

  	

   

  	

  179,756

  	

   

  	

  $

  	

  0.5500

  	

   

  	

  1996

  	

   

  
	

  July 18,

  2001

  	

   

  	

  20,244

  	

   

  	

  $

  	

  0.5500

  	

   

  	

  1995

  	

   

  

 

 

Long-Term Options:

 

 

	

  Option Grant Date

  	

   

  	

  Number of

  Shares of

  Common Stock

  	

   

  	

  Exercise

  Price

  Per Share

  	

   

  	

  Applicable

  Stock

  Plan

  	

   

  
	

  July 18,

  2001

  	

   

  	

  40,000

  	

   

  	

  $

  	

  0.5500

  	

   

  	

  1995

  	

   

  
									

 

SCHEDULE B

 

 

As used in this Agreement, “Premium

Price” shall mean 120% of the product of (x) the Fair Market

Value (as defined in Section 4 hereof) as determined on the date hereof and (y)

the total number of shares of Common Stock outstanding on the date hereof; provided

that in the event that a Qualified Transaction of the type described in clause

(iii) of the definition of such term is consummated, then the Premium Price

shall mean 120% of the product of (A) the Fair Market Value as determined on

the date hereof and (B) the total number of shares of Common Stock sold or

exchanged in connection with such Qualified Transaction.Prepared by MERRILL CORPORATION

July 18, 2001

 

Lennart Mengwall

20 Shady Acres

Darien, CT  06820

 

Dear Lennart:

 

This Letter Agreement (“Agreement”) is

intended to memorialize the understanding between you (“you” or “Employee”)

and Primix Solutions Inc., a Delaware corporation (together with its

successors, the “Company”), regarding certain

compensation arrangements established to provide an incentive for the

continuation of your employment with the Company.  This Agreement in no way establishes an employment contract.

 

1.     Severance Benefits

In the event that Employee’s employment with

the Company is terminated by the Company without Cause (as defined in Section 4

hereof) or by Employee for Good Reason (as defined in Section 4 hereof) (in

each such case, a “Qualified Termination Event”) at any

time on or after the date hereof, Employee shall be entitled to the following

severance and benefits:

(a)           Severance

Payment.  Employee shall be entitled

to a severance payment equal to the sum of (x) $150,000 plus (y) $25,000, in

each case, less all applicable federal, state and local taxes and withholdings

(the sum of (x) and (y), the “Severance Payment”).  The Severance Payment will be payable in

equal bi-weekly installments over a period of six (6) months (the “Severance

Period”) in accordance with the Company’s normal payroll

schedule.

(b)           Health

Insurance.  Provided that Employee

timely and properly elects to continue to receive group health insurance

pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”),

the Company will for the Severance Period pay the share of the premium for such

health insurance coverage that is paid by the Company as of the Termination

Date for active and similarly-situated employees who receive the same type of

coverage (the “COBRA Payments”). 

The remaining balance of any premium costs during the Severance Period

and all premium costs after the Severance Period shall be paid by Employee for

so long as, and to the extent that, Employee remains eligible for COBRA

continuation coverage.

Notwithstanding the foregoing, the Company’s

obligation to pay the Severance Payment and the COBRA Payments shall be

conditioned upon, and subject to, the execution and delivery by Employee of a

termination agreement, including a general release of claims, in form and

substance reasonably acceptable to the Company.

2.     Qualified Stock Options

Upon the occurrence of a Transaction (as

defined in Section 4 hereof) or a Qualified Termination Event occurring prior

to the Closing Date, Employee shall be entitled to the following treatment of

stock options to purchase shares of common stock of the Company (“Common

Stock”) heretofore granted to him under the Company’s 1995 Stock

Plan or 1996 Stock Plan, each as amended (the “Stock Plans”), that

have not been terminated, cancelled or otherwise surrendered (collectively, the

“Qualified

Stock

Options”):

(a)           Any and all such Qualified Stock Options shall become

fully vested as of, and subject to, the closing date of the Transaction (the “Closing

Date”) or Termination Date of such Qualified Termination Event,

as applicable; and

(b)           Subject

to earlier termination in accordance with the terms of the stock option

agreements and the Stock Plans pursuant to which the Qualified Stock Options

were granted, Employee shall be entitled to exercise the Qualified Stock

Options for a period of five (5) years after the earlier to occur of (i) the

Closing Date and (ii) the Termination Date of such Qualified Termination Event;

provided that the foregoing provision shall in no way affect the terms

of a Qualified Stock Option if such terms would otherwise provide for a longer

period to exercise such Qualified Stock Options.

Employee acknowledges that

from and after the date hereof certain of the Qualified Stock Options (or

portions thereof) may no longer qualify as an incentive stock option within the

meaning of the Internal Revenue Code of 1986, as amended.  Except as expressly provided in this Section

2, all other provisions of the stock option agreements and the Stock Plans

pursuant to which the Qualified Stock Options were granted shall continue to

govern the terms of the Qualified Stock Options.

For purposes of this Section

2, the term “Qualified Stock Options” shall (i) include the additional stock

options to purchase shares of Common Stock to be granted to Employee under the

Stock Plans on or around the date hereof as identified under the heading “Refresher

Options” on Schedule A attached and (ii) exclude the additional

stock options to purchase shares of Common Stock to be granted to Employee

under the Stock Plans on or around the date hereof as identified under the

heading “Long-Term Options” on Schedule A attached hereto.

3.     Transaction Success Bonus

In consideration of and subject to the

continuation of employment with the Company by Employee and his contribution

toward the consummation of a Transaction, in the event that a Transaction is

consummated on or prior to January 18, 2003 (a “Qualified Transaction”),

the Employee shall be entitled to an additional cash bonus amount (the

“Success Bonus”) equal to 1.25% of the

amount by which the Aggregate Net Proceeds (as hereinafter defined) exceeds the

Premium Price (as defined in Schedule B attached hereto).  In the event that a Qualified Transaction is

consummated within forty-five (45) days after a Qualified Termination Event,

Employee shall be entitled to receive 100% of the Success Bonus.  The Success Bonus (less all applicable

federal, state and local taxes and withholdings) shall be payable in cash to

Employee within thirty (30) days after the Closing Date.

As used herein “Aggregate Net Proceeds”

shall mean the total amount of cash paid or payable and the fair market value

of all property transferred or transferable directly or indirectly by an

acquiring Person to the Company or its stockholders in connection with a

Qualified Transaction.  Any securities

or other non-cash consideration to be delivered to the Company or its

stockholders in connection with a Qualified Transaction shall be valued in

accordance with the terms of the definitive document executed by the acquiring

Person and the Company or, if such terms are not set forth in such definitive

agreement, as otherwise reasonably determined in good faith by the Board of

Directors of the Company.

4.     Definitions

As used herein, the

following capitalized terms shall have the respective meanings set forth in

this Section 4:

“Cause” shall mean

conduct of Employee involving one or more of the following: (i) the substantial

and continuing failure of Employee, after notice thereof, to render services to

the Company in accordance with the terms or requirements of his employment;

(ii) disloyalty, gross negligence, willful misconduct, dishonesty, fraud or

breach of fiduciary duty to the Company which results in, or is reasonable

likely to result in, a material financial detriment to the Company or

substantially harms the Company’s reputation; (iii) deliberate disregard of the

rules or policies of the Company which results in a material financial

detriment to the Company or substantially harms the Company’s reputation; (iv)

breach of an employment-related agreement or other agreement with the Company,

including, without limitation, a breach of covenants not to compete, covenants

not to solicit employees or customers of the Company and covenants relating to

the protection of trade secrets or confidential information of the Company; or

(v) Employee’s conviction (including any pleas of guilty or nolo

contendre)

of any crime (other than ordinary traffic violations) which impairs Employee’s

ability to perform his duties.  For purposes

of this Agreement, a termination of Employee’s employment for Cause shall not

take effect unless the Company gives Employee written notice stating in detail

the particular act(s) or failure(s) to act that constitute the grounds on which

the proposed termination for Cause is based and Employee is given ten (10) days

after the date that such written notice is received in which to cure such

conduct, to the extent such cure is possible.

“Fair Market Value” of

one share of Common Stock on a given date shall mean the numerical average of

the fair market value per share of Common Stock over a period of twenty (20)

business days prior to and including such date.  For the purposes of determining the Fair Market Value:  (i) the fair market value per share of Common

Stock for any day shall mean the average of the closing prices of the Company’s

Common Stock sold on all securities exchanges on which the Common Stock may at

the time be listed or as quoted on the Nasdaq National Market, or, if there

have been no sales on any such exchange or any such quotation on any day, the

average of the highest bid and lowest asked prices on all such exchanges or

such systems at the end of such day, or, if on any day the Common Stock is not

so listed, the average of the representative bid and asked prices quoted in the

Nasdaq systems as of 4:00 p.m., Boston, Massachusetts time, or, if on any day

that the Common Stock is not quoted in the Nasdaq system, the average of the

highest bid and lowest asked price on such day in the domestic over-the-counter

market as reported by the National Quotation Bureau, Incorporated, or any

similar successor organization; and (ii) if at any time the Common Stock is not

listed on any securities exchange or quoted in the Nasdaq system or the over-the-counter

market, the fair market value per share of Common Stock for any such day shall

be determined in good faith by the Board of Directors of the Company.

“Good Reason” shall

mean:

(A)  for periods prior to the Closing Date and

after the first (1st) anniversary of the Closing Date, the occurrence of any of

the following events:  (i)

a substantial adverse change in the nature or scope of Employee’s

responsibilities, authorities, powers, functions or duties; (ii) a reduction in

Employee’s annual base salary or bonus compensation (subject to applicable

performance requirements with respect to the actual amount of bonus

compensation earned) as in effect on the date hereof or as the same may be

increased from time to time; (iii) the Company's requirement that Employee

relocate his principal place of service to the Company to a location that is

more than fifty (50) miles from his current principal place of service to the

Company; and

(B) for the period

commencing on the Closing Date and ending on the first (1st) anniversary of the

Closing Date, any of the following actions taken without Employee's consent:

(i) an unwelcome change in the nature or scope of Employee’s responsibilities,

authorities, powers, functions or duties as in effect immediately prior to the Closing

Date, (ii) a reduction by the Company in the Employee's annual base salary or

bonus compensation (subject to applicable performance requirements with respect

to the actual amount of the bonus compensation earned) as in effect immediately

prior to the Closing Date; (iii) a substantial reduction in the value of

Employee's benefit package and/or perquisites from the value of Employee's

benefit package and/or perquisites as in effect immediately prior to the

Closing Date; (iv) the Company's requirement that the Employee relocate his

principal place of service to the Company to a location that is more than fifty

(50) miles from his principal place of service to the Company as in effect

immediately prior to the Closing Date, or the imposition of travel requirements

substantially more demanding of the Employee than such travel requirements as

in effect immediately prior to the Closing Date; (v) any material breach by the

Company of this Agreement that is not remedied by the Company within thirty

(30) days of written notice of such breach by Employee, or (vi) the failure of

the Company to assign this Agreement in connection with a Transaction to a

successor to the Company or the failure of a successor to the Company to

explicitly assume and agree to be bound by this Agreement.

“Parent” shall mean

any corporation (other than the Company) in an unbroken chain of corporations

ending with the Company if each of the corporations other than the Company owns stock or other

interests possessing fifty percent (50%) or more of the total combined voting

power of all classes of stock in one of the other corporations in such chain.

“Person” shall mean

any individual, corporation, partnership (limited or general), limited

liability company, association, trust, joint venture, unincorporated

organization or any other entity or organization, governmental or otherwise.

“Subsidiary” shall

mean any corporation (other than the Company) in any unbroken chain of

corporations beginning with the Company if each of the corporations (other than

the last corporation in the unbroken chain) owns stock possessing fifty percent

(50%) or more of the total combined voting power of all classes of stock in one

of the other corporations in the chain.

“Transaction” shall

mean (i) a merger, reorganization or consolidation between the Company and

another Person (other than a Parent or Subsidiary of the Company) as a result

of which the holders of the Company’s outstanding voting stock immediately

prior to the transaction hold less than a majority of the outstanding voting

stock of the surviving entity immediately after the transaction, (ii) the sale

of all or substantially all of the assets of the Company to an unrelated

Person, (iii) the direct or indirect sale or exchange in a single or series of

related transactions by the stockholders of the Company of more than a majority

of all of the outstanding voting stock of the Company to an unrelated Person as

a result of which the holders of the Company’s outstanding voting stock

immediately prior to the transaction hold, directly or indirectly, less than a

majority of the outstanding voting stock of the Company immediately after the

transaction, or (iv) a single or a series of related transactions by the

Company and/or its stockholders with an unrelated Person or Persons as a result

of which such Person or Persons acting in concert have the right to control or

elect a majority of the Board of Directors of the Company.

5.     Notices, Acknowledgements and Other Terms

You are advised to consult

with an attorney before signing this Agreement.  This Agreement is the entire agreement between you and the

Company and, with the exception of any employee agreements between you and the

Company (which shall remain in full force and effect), all previous agreements,

or promises between you and the Company are superseded, null, and void.

By signing this Agreement, you acknowledge

that you are doing so voluntarily.  You

also acknowledge that you are not relying on any representations by any

representative of the Company concerning the meaning of any aspect of this

Agreement.

In the event of any dispute, this Agreement

will be construed as a whole, will be interpreted in accordance with its fair

meaning, and will not be construed strictly for or against either you or the

Company.  The law of The Commonwealth of

Massachusetts will govern any dispute about this Agreement, including any

interpretation or enforcement of this Agreement, without giving effect to the

conflict of laws principles thereof.  In

the event that any provision or portion of a provision of this Agreement shall

be determined to be unenforceable, the remainder of this Agreement shall be

enforced to the fullest extent possible as if such provision or portion of a

provision were not included.  This

Agreement may be modified only by a written agreement signed by you and an

authorized representative of the Company.

This Agreement shall be effective as of the

date first set forth above.

[END OF TEXT]

 

COMPANY:

 

PRIMIX SOLUTIONS INC.

 

 

	

  By:

  	

  /s/

  David Chapman

  	

   

  
	

   

  	

  Name:

  David Chapman

  	

   

  
	

   

  	

  Title:

  Chief Financial Officer

  	

   

  
	

   

  	

   

  	

   

  

 

ACKNOWLEDGED AND AGREED:

 

 

 

EMPLOYEE:

 

 

	

  By:

  	

  /s/

  Lennart Mengwall

  	

   

  
	

   

  	

  Signature

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Lennart Mengwall

  	

   

  
	

   

  	

  Print

  Name

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Chief Executive Officer

  	

   

  
	

   

  	

  Title

  	

   

  

 

 

 

 

SCHEDULE A

 

Refresher

Options:

 

	

  Option Grant Date

  	

   

  	

  Number of

  Shares of

  Common Stock

  	

   

  	

  Exercise

  Price

  Per Share

  	

   

  	

  Applicable

  Stock

  Plan

  	

   

  
	

  July 18, 2001

  	

   

  	

  292,104

  	

   

  	

  $

  	

  0.5500

  	

   

  	

  1996

  	

   

  
	

  July 18, 2001

  	

   

  	

  32,896

  	

   

  	

  $

  	

  0.5500

  	

   

  	

  1995

  	

   

  

 

 

Long-Term

Options:

 

 

	

  Option Grant Date

  	

   

  	

  Number of

  Shares of

  Common Stock

  	

   

  	

  Exercise

  Price

  Per Share

  	

   

  	

  Applicable

  Stock

  Plan

  	

   

  
	

  -- None

  --

  	

   

  

 

SCHEDULE B

 

 

As used in this Agreement, “Premium

Price” shall mean 120% of the product of (x) the Fair Market

Value (as defined in Section 4 hereof) as determined on the date hereof and (y)

the total number of shares of Common Stock outstanding on the date hereof; provided

that in the event that a Qualified Transaction of the type described in clause

(iii) of the definition of such term is consummated, then the Premium Price

shall mean 120% of the product of (A) the Fair Market Value as determined on

the date hereof and (B) the total number of shares of Common Stock sold or

exchanged in connection with such Qualified Transaction.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]