Document:

Employment Agr - Fowler

    Exhibit
      4(c)(10)

    

      

      Dated
        15
        April 2006

      

      

      (1) CORGI
        INTERNATIONAL LIMITED

      (aka
        ZINDART LIMITED)

      

      (2) KENNETH
        B. FOWLER

      

      ___________________________________________

      

      

      EMPLOYMENT
        AGREEMENT AMENDMENT

      

      ___________________________________________

      

      

                            

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      THIS
        EMPLOYMENT AGREEMENT AMENDMENT (the “Amendment”) is made on the 15th
        day of
        April, 2006, between:

      

      
        	
                (1)

              	
                Corgi
                  International Limited (aka Zindart Limited), a company incorporated
                  under
                  the laws of Hong Kong and whose registered office is at Unit 10,
                  16/F.,
                  Wah Wai Centre, 38-40 Au Pui Wan Street, Fo Tan, New Territories,
                  Hong
                  Kong (the "Company");
                  and

              
	 	 
	
                (2)

              	
                Kenneth
                  B. Fowler of 18B The Manhattan, 33 Tai Tam Road, Tai Tam, Hong
                  Kong
                  ("Employee").

              

      

      

      WHEREAS:-

      

      
        	
                (A)

              	
                The
                  Company and Employee have entered into an Employment Agreement
                  for Ken
                  Fowler (the “Agreement”) on the 30th
                  of
                  August, 2002.

              
	 	 
	
                (B)

              	
                The
                  Company and Employee mutually wish to amend the Agreement to modify
                  the
                  Terms of Employment as set out
                  therein.

              

      

      

      NOW
        THIS
        AMENDMENT HEREBY WITNESSES AS FOLLOWS:-

      

      
        	
                1.

              	
                Definitions

              

      

      

      Unless
        otherwise indicated, all terms are as defined in the Agreement.

      

      
        	
                2.

              	
                Term
                  of Employment; Termination

              

      

      

      
        	
                A.

              	
                The
                  following terms supersede such similar terms as noted under clause
                  2,
                  “Term of Employment; Termination” of the Agreement.

              
	
                B.

              	
                Employment
                  may be terminated by the Company without cause twelve (12) months
                  after
                  the Company gives written notice to Employee of his
                  termination.

              
	
                C.

              	
                Employee
                  will have the right to work during the initial six (6) months of
                  the
                  notice period, while seeking other employment.

              
	
                D.

              	
                Upon
                  Employee’s or Company’s request during the notice period, Company will
                  release Employee and provide to Employee pay in lieu of the remaining
                  notice period.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF the parties have entered into this Amendment on the day and
        year
        first above written 

      

        
          	
                  SIGNED
                    by George Volanakis

                	
                  )

                	 
	
                  For
                    and on behalf of CORGI

                	
                  )

                	 
	
                  INTERNATIONAL
                    LIMITED

                	
                  )

                	
                  /s/
                    George B. Volanakis

                
	
                  in
                    the presence of:-

                	
                  )

                	 
	 	 	 
	 	 	 
	
                  /s/
                    Tina Chu 

                	
                	 
	
                  Witness
                    Chu Ching Man

                	 	 
	 	 	 
	 	 	 
	
                  SIGNED
                    by KENNETH B. FOWLER

                	
                  )

                	 
	
                  in
                    the presence of:-

                	
                  )

                	
                  /s/
                    Kenneth B. Fowler

                
	 	 	 
	 	 	 
	 	 	 
	
                  /s/
                    Christopher Franklin 

                	
                   

                	 
	
                  Witness
                    Christopher Franklinexv10w1

 

Exhibit 10.1

 

August 28, 2006

Mr. Alan Treibitz

   And Stephanie S. Kelso

Z-Axis Corporation

The Quadrant, 5445 DTC Parkway #450

Greenwood Village, CO 80111

	 	 	 
	RE:

	 	Modification to Letter Agreement (Letter Agreement) dated July 2004 between Z-Axis Corporation
(Borrower) and Colorado Business Bank (Bank) relating to a Promissory Note dated June 2, 2003 (Line
Commitment)

Dear Alan and Stephanie:

Please let this letter serve as evidence that, in consideration of $1,000, Colorado
Business Bank waived all past covenant violations pertaining to the above referenced Line
Commitment. These covenants have been amended in connection with the Line Commitment renewal done
in August 2006, as referenced in a new Letter Agreement dated August 28, 2006.

Please acknowledge your agreement with the above referenced changes by signing
below.

	 	 	 	 	 
	Sincerely,	 	 
	 
	 	 	 	 
	/s/ Nancy Snyder	 	 
	 	 	 
	Nancy Snyder	 	 
	Senior Vice President	 	 
	 
	 	 	 	 
	Acknowledged:	 	 
	 
	 	 	 	 
	Z-Axis Corporation	 	 
	 
	 	 	 	 
	By

	 	/s/ Alan Treibitz	 	 
	 

	 	 	 	 
	 

	 	Alan Treibitz, CEO	 	 
	By

	 	/s/ Stephanie S. Kelso	 	 
	 

	 	 	 	 
	 

	 	Stephanie S. Kelso, President
	 	 

 

821 17th Street • Denver, Colorado 80202

Tel: 303.312.3400 • Fax: 303.312.3477

www.cobizbank.comexv10w2

 

Exhibit 10.2

 

August 28, 2006

Mr. Alan Treibitz and

   Ms. Stephanie Kelso

Z-Axis Corporation

The Quadrant, 5445 DTC Parkway, #450

Greenwood Village, CO 80111

Dear Alan and Stephanie:

Colorado Business Bank has approved the renewal of Z-Axis Corporation’s line of credit based on the
following terms and conditions:

	 	 	 
	BORROWER:
	 	Z-Axis Corporation

	 	 	 

	LENDER:
	 	Colorado Business Bank

(also, the “Bank”).

	 	 	 

	LINE COMMITMENT:     
	 	Initially at $230,000, with the line to be capped at $215,000
as of September 2, 2006; at $200,000 as of October 2, 2006; and at $185,000 as of November 2, 2006

	 	 	 

	PURPOSE:
	 	Working capital line of credit

	 	 	 

	RATE:
	 	Colorado Business Bank Prime Rate + 1.5%, floating

	 	 	 

	FEES:
	 	$1,000

	 	 	 

	MATURITY:
	 	December 2, 2006

	 	 	 

	REPAYMENT:
	 	Interest payments due monthly. In addition, the line will be
capped at $215,000 as of September 2, 2006; at $200,000
as of October 2, 2006; and at $185,000 as of November 30, 2006.

	 	 	 

	COLLATERAL:
	 	Business assets

	 	 	 

	GUARANTOR:
	 	Alan Treibitz

 1 

 

821 17th Street • Denver, Colorado 80202

Tel: 303.312.3400 • Fax: 303.312.3477

www.cobizbank.com

 

 

Colorado Business Bank Prime Rate is that interest rate which is used as an
index to price loans individually, based upon but not limited to the compensating
balances, the term, the purpose, the credit worthiness and the risk associated with any
particular credit. The rate established for any credit may be above or below the Prime Rate
depending upon the above assessments.

In consideration of the Lender providing the above referenced credit facilities and any
renewal thereof, the Borrower agrees to abide by all terms, conditions, and covenants of
this Letter Agreement and the terms, conditions and covenants of the final loan documents.
You may advance, repay and re-advance against the note, as allowed under the covenants
below, provided that the total amount outstanding against the promissory note evidencing the
indebtedness does not exceed the lesser of the Borrowing Base as defined below, or the Line
Commitment as defined above. Advances under the line are subject to the following:

	 	1.	 	Borrower shall execute all documents required by the Bank and provide certifications as
required by the Bank.
	 
	 	2.	 	Borrower shall be responsible for legal, filing, and other fees associated with closing the
above loan.
	 
	 	3.	 	Borrower may repay at any time without penalty.
	 
	 	4.	 	Borrower shall provide annual financial statements prepared by a certified public
accountant on an audited basis within 120 days of its fiscal year end.
	 
	 	5.	 	Borrower shall provide monthly in-house prepared financial statements within 30
days of each month end.
	 
	 	6.	 	Borrower shall allow access for an inspection of any and all records of the Company upon
the reasonable request of the Lender.
	 
	 	7.	 	Borrower shall provide to Lender other such information and reports as Lender may
reasonably request from time to time.
	 
	 	8.	 	All advances under this line of credit shall be credited to a demand deposit account of the
Borrower’s at Colorado Business Bank.
	 
	 	9.	 	The total of the indebtedness on the revolving line of credit may not at
any time exceed the lesser of the Line Commitment as defined above or the sum of the
following amounts (the “Borrowing Base”):

2

 

	 	a)	 	75% of eligible accounts receivable which are 90 days or less past the
date of invoice. Eligibility of accounts receivable is at the sole discretion of the Bank, but
generally excludes disputed accounts, accounts from employees and affiliates, contra accounts,
foreign accounts, and accounts from the Federal Government unless specifically assigned.

	 	10.	 	Borrower shall provide the Lender with weekly Collateral Exhibits of the Borrowing Base
signed by an authorized signer of Borrower along with the corresponding accounts receivable
aging.
	 
	 	11.	 	No advance against the line of credit shall be made if any default of the loan exists or if
any conditions of the covenants have not been met.
	 
	 	12.	 	Any request for advance, both orally and written, by the Borrower, or its agents certifies
that all covenants and conditions of this agreement have been met and that no default exists.
	 
	 	13.	 	Lender understands that Borrower is pursuing a stock exchange agreement with Silicon Mountain
Memory (SMM) which will allow the Borrower to spin off its public status and
shareholders and become a privately held company. Lender hereby provides its approval for the
Borrower to pursue this stock exchange agreement, subject to Alan Treibitz and Stephanie Kelso
becoming majority shareholders of the new entity. Lender will not hold SMM liable for the
repayment of this line facility.
	 
	 	16.	 	Borrower shall not make any investment in any other persons, firms, corporations or
affiliates, except for investments in direct obligations of the U.S. Government,
without prior written consent of the Lender.
	 
	 	17.	 	Borrower shall pay all taxes as and when due, and comply with all regulations imposed
by any and all governing authorities.
	 
	 	18.	 	Borrower’s debt/tangible net worth ratio shall not exceed 2.2X.
	 
	 	19.	 	Borrower’s shall maintain a minimum net worth of $500,000.
	 
	 	20.	 	Borrower shall maintain in force insurance satisfactory to the Bank covering all
assets. The Lender shall be named as loss payee under such policies.
	 
	 	21.	 	Borrower shall promptly give written notice to the Lender of any material adverse change in
the business, property, assets, operations or conditions, financial
or otherwise, of the Borrower,
any Event of Default or event which, with passage of time or notice, or both, would be an Event of
Default, or of the pendency or threat of any litigation, of any tax deficiency, or
of any petition in bankruptcy or other proceeding

3

 

	 	 	 	before any governmental body or official which may affect the financial
capacity of the Borrower.

Upon the occurrence of any event of default, the Lender may declare the entire
principal amount of indebtedness of the Borrower to the Lender then outstanding and the
interest accrued thereon to be immediately due and payable without presentment, demand, protest,
notice of protest or dishonor, or other notice of default of any kind, all of which are hereby
waived by the Borrower and all obligations, if any, of the Lender to the Borrower shall
immediately cease and terminate. No delays on the part of the Lender in exercising any rights,
power or privilege hereunder shall operate as a waiver thereof, nor shall any partial
exercise of any other right, power or privilege. The rights and remedies are cumulative and not
exclusive of any right or remedy which the Lender shall otherwise have.

For the purpose of loan documentation, this Letter Agreement and the
conditions/restrictions contained herein shall be deemed to be a portion of the loan
agreements between the Lender and the parties signing this agreement. It is further understood and
agreed that the terms recited herein are not exclusive and are deemed merely to be cumulative with
the provision of all security agreements, terms and notes, and terms of other documents executed in
connection with this loan. This letter and the credit facilities made available to Borrower are
intended for the use of the Borrower only. No third party rights are intended or conferred by this
letter and no other party is, in any way, allowed to rely on the representations
contained in this letter. By your acknowledgment of this letter, you agree to the terms and
conditions as above outlined.

	 	 	 	 	 	 	 
	Sincerely,	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Nancy Snyder	 	 	 	 
	 	 	 	 	 
	Nancy Snyder	 	 	 	 
	Senior Vice President	 	 	 	 
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 	 
	 
	 	 	 	 	 	 
	Z-AXIS CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Alan Treibitz
	 	8/29/06
	 	 
	 

	 	 
	 	 	 	 
	 

	 	Alan Treibitz, CEO/CFO
	 	Date	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Stephanie S. Kelso
	 	8/29/06	 	 
	 

	 	 
	 	 	 	 
	 

	 	Stephanie S. Kelso, President
	 	Date	 	 
	 
	 	 	 	 	 	 
	GUARANTOR:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/ Alan Treibitz
	 	8/28/06	 	 
	 	 	 	 	 
	 

	 	Alan Treibitz
	 	Date	 	 

4

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