Document:

Exhibit 10.1

 

DIRECTORS and OFFICERS

EMPLOYMENT AGREEMENT

 

                I, John Paxton (the “Employee”)

understand my employment with Zebra Technologies Corporation (“Zebra”), will

give me access to information which Zebra regards as confidential and

proprietary to its business and, if known to its competitors, would damage

Zebra. My employment also may give me access to Zebra’s customers which are a

unique and valuable asset to Zebra. Accordingly, so that there will be no

misunderstanding in the future regarding these matters, in consideration of my

employment or continued employment and for other good and valuable

consideration, I agree to the following:

 

1.             Zebra wishes to employ me and I

wish to be employed by Zebra. I understand that my employment and the compensation

which I receive from Zebra is subject to my promises and obligations set forth

in this Agreement. Zebra has also agreed that it will offer me employment

subject to the terms in this Agreement on the condition that I comply with my

obligations described in this Agreement which are deemed ancillary to my

employment relationship with Zebra.

 

2.             Zebra has hired me

for the position of President, Barcode Business Unit. The primary duties and

expectations of this position have been described to me, and they will be

available to me for review in the office of Zebra’s Vice President, Human

Resources. As of the execution date of this Agreement, my salary for performing

these services is $19,230.76 per two-week pay period (annualized $500,000.00)

during the time I am employed by Zebra. In 2002, I will participate in the

management bonus plan at the annual target level of 60% of base earnings. Zebra

has agreed to pay me and I understand that I am eligible for salary increases

consistent with and subject to the normal and usual practices and guidelines

which apply to Zebra’s other employees that are similarly situated to me.

 

3.             In addition to my

salary, I understand that I also am available for all other fringe benefits

provided by Zebra to other similarly situated employees (i.e., vacation,

holidays, etc.) on the same basis and to the same extent as such applicable

benefits are provided to all other similarly situated employees and subject to

the terms and eligibility requirements for such benefit programs.

 

4.             As consideration for

the promises herein, the Company grants to the Employee the option to purchase

100,000 shares of Zebra Technologies Corporation Class A Common Stock in

accordance with the Zebra Technologies Corporation 1997 Stock Option Plan dated

February 20, 2002.

 

5.             During my employment with Zebra, I

agree to refrain from engaging in any activity or outside employment which is

either directly or indirectly detrimental to or which would pose an actual or

potential conflict of interest to Zebra.

 

6.             During and after my employment with

Zebra, I will keep confidential and not disclose to others without written

authorization from Zebra’s Chief Executive Officer, any of Zebra’s Confidential

Information. I understand and acknowledge that if I violate this paragraph,

Zebra is entitled to all remedies available under the statutory and common law,

including without limitation those set forth in the Illinois Trade Secret’s

Act.

 

                The phrase “Confidential

Information” includes, but is not limited to, the following:

•    Information

related to the internal affairs of Zebra, its customers, services, products or

employees including but not limited to the following: (i) product resident

software, object code or design concepts, (ii) customer or produce specific

sales/marketing strategy, (iii) new product development activities, (iv)

employee personnel files, or (v) competitive, market or product research data.

•    Information

related to Zebra’s methods, ways of doing business, efforts to market Zebra’s

services, including but not limited to the following: (i) business acquisition,

divestiture or joint venture activities, or (ii) business agreements with

customers or end users.

 

 

7.             Upon termination of my employment

with Zebra (for any reason), I will immediately return all notes, data,

reference materials, sketches, drawings, memoranda, records, and any other

tangible information (and all copies of the same) which in any way relate to or

concern Zebra’s business, Zebra’s employees, or any of Zebra’s Confidential

Information.

 

8.             During my employment with Zebra, and for a period of

twelve (12) consecutive months following the termination of my employment (for

any reason), I will not directly or indirectly:

 

(a)          Contact,

solicit, interfere with or divert any of Zebra’s customers for which I perform

services on behalf of during my employment with Zebra, for my own benefit or

for the benefit of other companies, individuals, or business entities which are

in competition with Zebra. (This restriction is necessary in order to protect the

good will of Zebra and its near permanent relationship with its customers);

(b)         Solicit any person who is

employed by Zebra for the purpose of encouraging that employee to join me as a

partner, agent, employee or otherwise in any business activity which is

competitive with Zebra; and

(c)          Perform

services in any capacity for myself or any entity, partnership, organization or

business which is in any way competitive with Zebra. (This restriction is

necessary because I acknowledge that it would be virtually impossible for me to

work for any competitive business entity without having to breach my

obligations contained in this agreement, because of the unique relationship

between the Director/Officer and the Company.

 

9.             I understand and agree that any and all Confidential

Information which I have access to, use or create during my employment with

Zebra is and shall at all times remain the sole and exclusive property of

Zebra, and I agree to assign to Zebra any right, title or interest I may have

in such Confidential Information to Zebra. I also agree that, if I am asked by

Zebra (at its expense), I will do all things and sign all necessary documents

reasonably necessary in the opinion of Zebra to eliminate any ambiguity as to

the right of Zebra in such Confidential Information including but not limited

to providing my full cooperation to Zebra in the event of any litigation to

protect, establish or obtain such rights of Zebra.

 

                I understand that this paragraph

does not waive or transfer my rights to any invention for which no equipment,

supplies, facility or trade secret or Confidential Information of Zebra was

used and which was developed entirely on my own time, unless the invention

relates to the business of Zebra, or to Zebra’s actual demonstratively anticipated

research or development, or the invention results from any work that I

performed for Zebra during the term of my employment relationship with Zebra.

 

10.           This Agreement is governed by the

laws of the State of Illinois, and a breach of its terms by me will cause

irreparable harm to Zebra. Therefore, if I breach any of the terms of this

Agreement, or if I threaten such a breach, in addition to other remedies, Zebra

has the right to enforce this Agreement by way of a temporary and/or permanent

injunction, and I will be required to pay its legal expenses and costs incurred

in bringing such an action against me.

 

11.           I acknowledge and agree that the

terms of this Agreement are reasonable and necessary to preserve Zebra’s

legitimate business interests, and that they will not prevent me from earning a

livelihood in my chosen business and they are not an undue restraint on me and

my future employment opportunities.

 

12.           I understand and acknowledge that

this Agreement is not intended to create a promise or contract of employment

for a specific term. Additionally, I acknowledge and agree that if any

terms of this Agreement are deemed unenforceable by a court of law, they may be

deleted from this Agreement without having any effect on the remaining terms.

 

13.           I acknowledge that I have had the

opportunity to review the restrictions in this Agreement with an attorney and

that Zebra and I have engaged in negotiations over the terms of employment and

compensation which I will receive for so long as I am employed by Zebra.

 

2

 

	

  /s/ John Paxton

  	

   

  	

   

  	

  /s/ Zebra Technologies Corporation

  
	

  JOHN PAXTON

  	

   

  	

   

  	

  ZEBRA TECHNOLOGIES CORPORATION

  
	

   

  	

   

  	

   

  	

   

  
	

  February 17, 2002

  	

   

  	

   

  	

  February 17, 2002

  
	

  DATE

  	

   

  	

   

  	

  DATE

  
	

   

  	

   

  	

   

  	

   

  

 

3FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

Exhibit 10.17

FIRST AMENDMENT TO LOAN AND SECURITY

AGREEMENT

 

 

THIS FIRST AMENDMENT AGREEMENT (the “Amendment”) dated December 12,

2001, is between and among Wells Fargo Retail Finance LLC (hereinafter, “WFRF” or

“Lender”), a Delaware limited liability company with its principal

executive offices at One Boston Place, 18th Floor, Boston,

Massachusetts 02108 and Paper Warehouse, Inc. a Minnesota corporation with its

principal executive offices at 7630 Excelsior Boulevard, Minneapolis,

Minnesota, 55426-4504 (hereinafter “Paper Warehouse”), jointly and severally

with  Paper

Warehouse Franchising, Inc. a Minnesota corporation with its principal

executive offices at 7630 Excelsior Boulevard, Minneapolis, Minnesota,

55426-4504 (hereinafter “PWFI”), PartySmart.com, Inc. a Minnesota

corporation with its principal executive offices at 7630 Excelsior Boulevard,

Minneapolis, Minnesota, 55426-4504 (“PartySmart”) (hereinafter Paper Warehouse,

PWFI and PartySmart may be collectively referred to as collectively Borrowers

and any one of them individually as “Borrower”)

 

Recitals

 

The Borrower and the Lender have entered into a Loan and Security

Agreement dated as the 7th of September, 2001 (the “Loan

Agreement”) and all indebtedness of the Borrower to the Lender is

secured pursuant to the terms of the Loan Agreement and all other Loan

Documents as defined therein (collectively, the “Loan Documents”).

 

The Borrower and the Lender desire to amend the Loan Agreement to

provide for a substitute Exhibit 9-11, and that such amendment be deemed to be

effective as of the Closing Date.

 

NOW, THEREFORE, in consideration of the premises and of the mutual

covenants and agreements herein contained, it is agreed as follows:

 

1.             Terms

used in this Amendment, which are defined in the Loan Agreement, shall have the

same meanings as defined therein, unless otherwise defined herein.

 

2.             The

Loan Agreement is hereby amended to provide that the EBITDA Covenant set forth

on Exhibit 9-11 attached at closing is hereby stricken in its entirety and the

new EBITDA Covenant set forth below is substituted therefore as if attached on

the Closing Date:

 

EBITDA

 

Measured on a rolling four quarter basis, on the last

day of each of the Company’s fiscal quarters (the “Measurement Dates”), during

the term hereof, actual EBIDTA shall be at least 80% of the prior 12 month

EBITDA set forth in the Business Plan if the prior 12 month EBITDA is

forecasted to be positive, and no greater than 120% of the prior 12 month

EBITDA if the prior 12 month EBITDA is forecasted to be negative.

 

 

1

 

 

To the extent there exist or have existed any Event(s) of Default based

upon the EBITDA covenant set forth on Exhibit 9-11 prior to amendment hereby,

Lender hereby waives such Event of Default.

 

3.             Except

as explicitly amended by this Amendment, all of the terms and conditions of the

Loan Agreement and Forebearance Agreement are hereby ratified and confirmed,

and shall remain in full force and effect and shall apply to any advance

thereunder.

 

4.             The

Borrower hereby represents and warrants to the Lender as follows:

 

(a)                                  The Borrower has all requisite power and

authority to execute this Amendment and to perform all of its obligations

hereunder, and this Amendment has been duly executed and delivered by the

Borrower and constitutes the legal, valid and binding obligation of the

Borrower, enforceable in accordance with its terms.

 

(b)                                 The execution, delivery and performance

by the Borrower of this Amendment has been duly authorized by all necessary corporate

action and does not (i) require any authorization, consent or approval by any

governmental department, commission, board, bureau, agency or instrumentality,

domestic or foreign, (ii) violate any provision of any law, rule or regulation

or of any order, writ, injunction or decree presently in effect, having

applicability to the Borrower, or the articles of incorporation or by-laws of

the Borrower, or (iii) result in a breach of or constitute a default under any

indenture or loan or Loan agreement or any other agreement, lease or instrument

to which the Borrower is a party or by which it or its properties may be bound

or affected.

 

(c)                                  All of the representations and warranties

contained in Article 5 of the Loan Agreement are correct on and as of the date

hereof as though made on and as of such date, except to the extent that such

representations and warranties relate solely to an earlier date.

 

(d)                                 With respect to each of Paper Warehouse,

PartySmart and PWFI: (i) The resolutions of the board of directors of the

Borrower attached to the Borrower’s General Certificate provided at closing,

and delivered to the Lender in connection with the execution and delivery of

the Loan Agreement (the “Certificate”) are in full force and

effect, (ii) the Articles of Organization and By Laws of the Borrower, which

were certified and delivered to the Lender pursuant to the Certificate,

continue in full force and effect and have not been amended or otherwise

modified except as set forth in the Certificate to be delivered, and (iii) the

officers and agents of the Borrower who have been certified to the Lender

pursuant to the Certificate as being authorized.

 

2

 

 

5.              All references in the Loan Agreement to “this

Agreement” shall be deemed to refer to the Loan Agreement as amended hereby.

 

6.             The Loan Documents set forth in full are terms of

agreement between the parties and are intended as the full, complete and

exclusive contract governing the relationship between the parties, superseding

all other discussions, promises, representations, warranties, agreements and

the understandings between the parties with respect thereto. No term of the

Loan Documents may be modified or amended, nor may any rights thereunder be

waived, except in a writing signed by the party against whom enforcement of the

modification, amendment or waiver is sought. Any waiver of any condition in, or

breach of, any of the foregoing in a particular instance shall not operate as a

waiver of other or subsequent conditions or breaches of the same or a different

kind. The Lender’s exercise or failure to exercise any rights under any of the

foregoing in a particular instance shall not operate as a waiver of its right

to exercise the same or different rights in subsequent instances. Except as

expressly provided to the contrary in this Amendment, or in another written

agreement, all the terms, conditions, and provisions of the Loan Documents

shall continue in full force and effect. If in this Amendment’s description of

an agreement between the parties, rights and remedies of Lender or obligations

of the Borrower are described which also exist under the terms of the other

Loan Documents, the fact that this Amendment may omit or contain a briefer

description of any rights, remedies and obligations shall not be deemed to

limit any of such rights, remedies and obligations contained in the other Loan

Documents.

 

7.             This Amendment has been prepared through the joint

efforts of all the parties. Neither its provisions nor any alleged ambiguity

shall be interpreted or resolved against any party on the ground that such

party’s counsel was the draftsman of this Amendment.  Each of the parties declares that such party has carefully read

this Amendment and the agreements, documents and instruments being entered into

in connection herewith and that such party knows the contents thereof and sign

the same freely and voluntarily. The parties hereto acknowledge that they have

been represented in negotiations for and preparation of this Amendment and the

agreements, documents and instrument being entered into in connection herewith

by legal counsel of their own choosing, and that each of them has read the same

and had their contents fully explained by such counsel and is fully aware of

their contents and legal effect.

 

 

                IN WITNESS WHEREOF, the parties

hereto have caused this First Amendment to be duly executed as of the day and

year first above written.

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  PAPER WAREHOUSE,

  INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  (BORROWER)

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:  \s\

  Cheryl W. Newell

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Print Name: 

  Cheryl W. Newell

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Title:  Vice

  President and Chief Financial Officer

  

 

 

3

 

	

   

  	

   

  	

  PAPER WAREHOUSE

  FRANCHISING, INC.

  
	

   

  	

   

  	

  (BORROWER)

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:  \s\

  Cheryl W. Newell

  
	

   

  	

   

  	

  Print Name: 

  Cheryl W. Newell

  
	

   

  	

   

  	

  Title:  Chief

  Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  PARTYSMART.COM, INC.

  
	

   

  	

   

  	

  (BORROWER)

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:  \s\

  Cheryl W. Newell

  
	

   

  	

   

  	

  Print Name: 

  Cheryl W. Newell

  
	

   

  	

   

  	

  Title:  Chief

  Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  WELLS FARGO RETAIL FINANCE LLC

  
	

   

  	

   

  	

  (LENDER)

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:  \s\

  Daniel F. O’Rourke

  
	

   

  	

   

  	

  Print Name:  Daniel F. O’Rourke

  
	

   

  	

   

  	

  Title: 

  Account Executive

  
	

   

  	

   

  	

   

  

 

4

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