Document:

Unassociated Document

    

      Exhibit
10.2

       

      CONFIDENTIALITY,
NON-COMPETE, SEVERANCE,

      AND
CHANGE IN CONTROL AGREEMENT

      

      This
Confidentiality, Non-Compete, Severance, and Change in Control Agreement (the
“Agreement”) is entered into as of this ____ day of _________, 20__, by and
between _____________________, a French national, born on _________________, in
_______________________, residing at ____________________________________, with
social security number _________________________ (“Executive”), Dresser-Rand
S.A, a French corporation, registered with the Registry of Commerce of _____
under number ______, having its registered offices at _____________, duly
represented by ________________, ________________________, Dresser-Rand S.A.
(the “Company”), and Dresser-Rand Group Inc., a Delaware corporation with a
principal place of business in Houston, Texas (“D-R Group”).

       

      WHEREAS,
Executive is currently employed with the Company and, by virtue of that
employment will receive access to competitively sensitive, confidential,
proprietary and trade secret information relating to the current and planned
business of the Company and its Affiliates; and

       

      WHEREAS,
the Company and Executive wish to make certain arrangements to protect the value
of such information to the Company and its Affiliates during Executive’s
employment and following such time as Executive’s employment with the Company
may end; and

       

      WHEREAS,
in exchange for such protections and in recognition of Executive’s anticipated
contributions to the Company, the Company, D-R Group and Executive wish further
to make arrangements for the potential payment of a contractual severance
indemnity following the conclusion of Executive’s employment with the Company
under certain circumstances, including following a change in control of D-R
Group as set forth herein.

       

      NOW,
THEREFORE, in consideration of the mutual representations, warranties, covenants
and agreements set forth herein, the parties hereto, intending to be legally
bound hereby, agree as follows:
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      1.           DEFINITIONS.

       

      (a) Affiliate.  For purposes of this Agreement,
“Affiliate” shall mean any
corporation, limited liability company or similar entity which is under the
control of the Company or under common control with the
Company.

       

      (b) Base
Salary.  For purposes of this Agreement, “Base Salary” shall
mean the annualized rate of salary authorized and being paid to Executive as of
the date in question, excluding any bonus, incentive plan payments, benefits,
equity compensation, and other forms of compensation that are not paid to
Executive on a regular, recurring basis under the Company’s standard payroll
practices.

       

      (c) Change in
Control.  For purposes of this Agreement, a “Change in Control”
shall mean the first to occur of any of the following events:

       

      (i)           during
any 12-month period, the members of the Board (the “Incumbent Directors”) cease
for any reason other than due to death or disability to constitute at least a
majority of the members of the Board, provided that any director whose election,
or nomination for election by D-R Group’s stockholders, was approved by a vote
of at least a majority of the members of the Board who are at the time Incumbent
Directors shall be considered an Incumbent Director, other than any such
individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or consents by or on
behalf of a person other than the Board;

      

      (ii)          the
acquisition or ownership by any individual, entity or "group" (within the
meaning of  Section 13(d)(3) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)), other than D-R Group or any of its Affiliates
or Subsidiaries, or any employee benefit plan (or related trust) sponsored or
maintained by D-R Group or any of its Affiliates or Subsidiaries, of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of the combined voting power of D-R Group's then outstanding
voting securities entitled to vote generally in the election of
directors;

      

      (iii)         the
merger, consolidation or other similar transaction of D-R Group, as a result of
which the stockholders of D-R Group immediately prior to such merger,
consolidation or other transaction, do not, immediately thereafter, beneficially
own, directly or indirectly, more than 50% of the combined voting power of the
voting securities entitled to vote generally in the election of directors of the
merged, consolidated or other surviving company; or
 

      
        
           

        

        
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      (iv)         the
sale, transfer or other disposition of all or substantially all of the assets of
D-R Group to one or more persons or entities that are not, immediately prior to
such sale, transfer or other disposition, Affiliates of D-R Group.

       

      A “Change
in Control” shall not be deemed to occur if the Company undergoes a bankruptcy,
liquidation or reorganization under the United States Bankruptcy
Code.

       

      (d)   
   Date
of Termination.  For purposes of this Agreement, “Date of
Termination” shall mean the date on which Executive’s termination of employment
with the Company and any Affiliate occurs.

       

      (e)       Effective
Date.  The Effective Date of this Agreement shall be the date
first indicated above.

       

      (f)       
Parent Company.
For purposes of this Agreement, "Parent Company" shall mean Dresser-Rand Group
Inc.

       

      (g)     
 Person.  For
purposes of this Agreement, “Person” shall mean an individual, corporation,
partnership, limited liability company, limited liability partnership,
syndicate, person, trust, association, organization, or other entity, including
any Governmental Entity, and including any successor, by merger or otherwise, of
any of the foregoing.

       

      2.           EMPLOYMENT.  Executive
acknowledges and agrees that nothing herein shall be construed as a guarantee of
continued employment for a specific period or under particular terms or
otherwise as having altered the Executive status as employee of the Company.
 

      
        
           

        

        
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      3.           CONFIDENTIALITY,
NONCOMPETITION, ETC.

       

      (a) Confidentiality.

       

      (i)           Executive
acknowledges that the business of the Company is intensely competitive and that
Executive's employment by the Company has required and will require that
Executive have access to and knowledge of confidential information of the
Company and its Affiliates, which the Company or such Affiliates has provided to
Executive in the past and the Company hereby agrees to continue to provide to
Executive during his future employment as necessary to perform his assigned
duties.  Such confidential information includes, but is not limited
to, formulae, manufacturing processes, distribution systems, research and
development methods and techniques, the identity of customers, the identity of
the representatives of customers with whom the Company or its Affiliates has
dealt, the kinds of services provided by the Company and its Affiliates to
customers and offered to be performed for potential customers, the manner in
which such services are performed or offered to be performed, the service needs
of actual or prospective customers, pricing information, information concerning
the creation, acquisition or disposition of products and services, customer
maintenance listings, computer software applications and other programs,
personnel information and other trade secrets (the “Confidential
Information”).  Confidential Information shall not include information
which (w) was publicly available prior to the date hereof, (x) was known by
Executive from a source other than through Executive's employment with, or
service as a director of, the Company, (y) is acquired by Executive from a third
party who was not subject to any restrictions as to its disclosure, or (z)
becomes publicly available subsequent to the date hereof, other than as a result
of an action by Executive.  Executive expressly acknowledges the trade
secret status of the Confidential Information and that the Confidential
Information constitutes a protectible business interest of the
Company.  Executive further acknowledges that the direct or indirect
disclosure of any such Confidential Information would place the Company at a
competitive disadvantage and would do damage, monetary or otherwise, to the
Company's business and that the engaging by Executive in any of the activities
prohibited by this Section 3 may constitute improper appropriation and/or use of
such information and trade secrets.

       

      (ii)           The
Company and Executive agree that, for purposes of this Section 3, except as
otherwise provided, the business of the Company shall mean the businesses
conducted by the Company, its Parent Company, and its Affiliates during the
period of Executive's employment by the Company.  Executive
acknowledges that the Company engages in its business throughout the
world.

       

      (iii)         During
Executive's employment by the Company and at all times following the termination
of Executive's employment for any reason, Executive shall not, directly or
indirectly, whether individually, as a director, stockholder, owner, partner,
employee, principal or agent of any business, or in any other capacity, make
known, disclose, furnish, make available or utilize any of the Confidential
Information, other than in the proper performance of the duties contemplated
herein, or as required or requested by a court of competent jurisdiction or
other administrative or legislative body; provided, however, that, in such event, Executive
shall promptly notify the Company so that the Company may seek a protective
order or other appropriate remedy.  If reasonably practicable,
Executive shall notify the Company prior to disclosing any of the
Confidential Information to a court or other administrative or legislative body.
Executive agrees to return all Confidential Information, including all
photocopies, extracts and summaries thereof, and any such information stored
electronically on tapes, computer disks or in any other manner to the Company at
any time upon request by the Company and upon the termination of his employment
for any reason.

      
        
           

        

        
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      (b) Non-Competition.  Executive
has had principle responsibility for the profit and loss of the business of the
Company and its Affiliates in the European Served Area (“ESA”) and for North
American Operations (“NAO”).  ESA includes Europe (East and West),
Asia and the Middle East. NAO includes Canada, the United States and Mexico. For
a period of 1 year, renewable once, following the termination of Executive’s
employment with the Company, Executive shall not in the territory covered by ESA
or NAO, directly or indirectly, engage in Competition (as defined below); provided, however, that it
shall not be a violation of this sub-paragraph for Executive to become the
registered or beneficial owner of up to five percent (5%) of any class of
the capital stock of a  competing corporation listed on a regulated
stock exchange, provided that Executive does not actively participate in the
business of such corporation until such time as this covenant expires. The
Company may not renew the non-compete period beyond the initial one-year period
unless Executive’s contract is terminated within 2 years of a Change in
Control.

       

      (c) Definition of
Competition.  As used herein, business is directly competitive
with the business of the Company and a business or organization directly
competes with the business of the Company when such business or organization
involves, directly or indirectly, rotating equipment as used by the oil, gas,
petrochemical, and process industries, including compressors (whether
centrifugal, reciprocating or others), steam and gas turbines, expanders,
turbine packages, and control systems, and the design, manufacture, assembly,
sales, repair and servicing of any of the foregoing.

       

      For
purposes of this Agreement, “Competition” means, for Executive's benefit or for
the benefit of any other Person, firm or entity, any of the
following:

       

      (i)           engaging
in, or otherwise being employed by or acting as a consultant or lender to, or
being a director, officer, employee, principal, licensor, trustee, broker,
agent, stockholder, member, owner, joint venturer or partner of, any other
business or organization which directly competes with the business of the
Company;

       

      (ii)          soliciting
from any customer doing business with the Company or its Affiliates as of
Executive's Date of Termination business directly competitive with the business
of the Company with such customer or such party;

       

      (iii)         soliciting
from any potential customer of the Company or its Affiliates known to Executive business
directly competitive with the business of the Company which has been the subject
of a written or oral bid, offer or proposal by the Company known to Executive, or of
substantial preparation known to
Executive with a view to making such a bid, proposal or offer, within
six (6) months prior to Executive's Date of Termination; or

       

      (d) Waiver of Non-Compete
Covenant. The Company may waive application of the non-compete covenant
by notifying Executive in writing within eight (8) days of notification of the
termination of Executive’s employment with the Company.
 

      
        
           

        

        
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      (e) Remuneration of
Non-Competition Covenant. If the non-compete covenant has not been waived
pursuant to (d) above, following termination of the employment contract, the
Company will pay to Executive an indemnity equal to 5/10th of
Executive’s average monthly salary and contractual premiums that Executive
received during the last 12 months of employment of Executive with the Company.
In case of dismissal for cause other that serious or very serious misconduct
(“faute grave ou faute
lourde”), this indemnity will be raised to 6/10th of that
average, for as long as Executive shall not have found new employment, and for a
maximum duration equal to the duration of the non-compete covenant. The
non-compete indemnity will be paid monthly for the duration of the non-compete
covenant, and for as long as the Employee will have observed it
strictly.

       

      (f) Solicitation of Company
Employees.  During Executive’s employment with the Company and
continuing through the date that is three (3) years after Executive’s Date of
Termination for any reason, Executive will not solicit the employment or
services of, or hire, any individual who is employed by or known by Executive to be a consultant
to the Company or any of its Affiliates.  In the event Executive’s
employment with the Company has ended, the foregoing restriction on solicitation
and hiring shall apply to any individual who was employed by or known by
Executive to be a consultant to the Company or any of its Affiliates upon the
Date of Termination or within six (6) months prior thereto, unless such
Person is not an employee of, or a consultant to, the Company or any of its
Affiliates at the time of such solicitation by Executive and has not been an
employee of, or consultant to the Company or any of its Affiliates for
six (6) months prior thereto.

       

      (g)          Acknowledgements Regarding
Covenants.  Executive acknowledges that (i) in view of the
Executive’s very senior position in the Company and the group of companies the
Company belongs to, the scope and duration of the restrictive covenants
contained herein are reasonable and necessary to protect the value of the
Company’s and its Affiliates’ Confidential Information given the nature of such
Confidential Information and of the Company’s business; and (ii) the
restrictive covenants and the other agreements contained herein are an essential
part of this Agreement.  Executive further represents and warrants and
acknowledges and agrees that Executive has been, or has had the opportunity to
be, fully advised by counsel in connection with the negotiation, preparation,
execution and delivery of this Agreement, and that, having regard to Executive’s
training and qualifications, this covenant does not affect Executive’s ability
to find other employment.

       

      (h)          Non-Disparagement.  Executive
agrees that both during and after termination of this Agreement he shall not
make any statement, written or verbal, in any forum or media, or take any
action, that is intended to injure or damage the goodwill, reputation or
business prospects of the Company or its Affiliates; provided, however, that the
foregoing shall not apply to or restrict in any way the communication of
information by Executive to any state or federal law enforcement or
administrative agency or in a court, arbitration or administrative proceeding,
and Executive will not be in breach of the covenant contained above solely by
reason of such communication or testimony.

       

      
        
           

        

        
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      (i) Remedies.  In
the event Executive breaches any of the provisions of this Section 3, the
Company shall have the following rights and remedies, each of which shall be
independent of the others and severally enforceable, and each of which shall be
in addition to, and not in lieu of, any other rights or remedies available to
the Company or any of its subsidiaries, Affiliates, successors or assigns at law
or in equity under this Agreement or otherwise:

       

      (i)           The
right and remedy to have each and every one of the covenants in this Section 3
specifically enforced and the right and remedy to obtain injunctive relief, it
being agreed that any breach or threatened breach of any of the non-competition
or other restrictive covenants and agreements contained herein would cause
irreparable injury to the Company, its Parent Company and its subsidiaries,
Affiliates, successors or assigns and that money damages would not provide an
adequate remedy at law to the Company, its Parent Company and its subsidiaries,
Affiliates, successors or assigns.

       

      (ii)           Without
prejudice of the rights and remedies set out at (i) above, any breach of each
and every one of the covenants in this Section 3 will cause Executive to be
automatically liable to the Company for a penalty hereby set at a lump-sum
corresponding to the last twelve (12) months of gross base salary received by
Executive under his employment with the Company; this penalty will be payable
for each occurrence, without a formal injunction to discontinue the forbidden
activity being required from the Company.

       

      (iii)           Executive
acknowledges and agrees that the restrictive covenants and agreements contained
herein are reasonable and valid in geographic, temporal and subject matter scope
and in all other respects.  If, however, any arbitrator or court
subsequently determines that any of such covenant or agreement, or any part
thereof, is invalid or unenforceable as written, then such provision shall be
reformed to the extent necessary (and to no greater extent) to be valid and
enforceable.  If such provision cannot be so reformed, it shall be
deemed struck by the parties and the remainder of such covenants and agreements
shall not thereby be affected and shall be given full effect without regard to
the invalid portions.

       

      4.           RETURN OF COMPANY
PROPERTY.  Executive agrees that following the termination of
employment for any reason, Executive shall return all property of the Company
and any of its subsidiaries, Affiliates and any divisions thereof which is then
in or thereafter comes into Executive's possession, including, but not limited
to, documents, contracts, agreements, plans, photographs, books, notes,
electronically stored data and all copies of the foregoing as well as any
automobile or other materials or equipment supplied by the Company to
Executive.
 

      
        
           

        

        
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      5.           SEVERANCE UPON TERMINATION
WITHOUT CHANGE IN CONTROL.

       

      (a) Severance
Payments.  In case of termination by the Company of Executive’s
employment with the Company, for any reason other than dismissal for serious or
very serious misconduct (faute
grave ou faute lourde), and except in case of Termination Following a
Change in Control as set forth at Section 6 below, to the extent that the sum of
the Non-Compete payment provided at Section 3 (e) above and the dismissal
indemnity set forth by article 29 of the National Collective Bargaining
Agreement of Engineers and Managers of the Metal Industry (the “CBA”) (Amount
A), is less than the “Standard Severance Amount” defined in Schedule A (Amount
B), D-R Group will pay Executive the difference between Amount B and Amount A on
the date of the first anniversary of the start of the Non-Compete period
provided that the Executive shall have complied with Section 7
hereof.

       

      6.           SEVERANCE UPON TERMINATION
FOLLOWING A CHANGE IN CONTROL.

       

      (a) Termination Following Change
in Control.  In the event Executive's employment with the
Company shall be terminated  by the Company within two (2) years
following the occurrence of a Change in Control, for any reason other than
dismissal for serious or very serious misconduct, to the extent that the sum of
the Non-Compete payment provided at Section 3 (e) above and the dismissal
indemnity set forth by article 29 of the CBA (Amount A) is less than the
“Change-In-Control Severance Amount” defined in Schedule A (Amount C), D-R Group
will pay Executive the difference between Amount C and Amount A on the date of
the second anniversary of the start of the Non-Compete period provided that
Executive shall have complied with Section 7 hereof..

       

      7.     
     RELEASE REQUIREMENTS FOR
POST TERMINATION PAYMENTS.  As condition to the receipt of any
incremental difference between on one hand Amount A and on the other hand either
Amount B or C pursuant to Section 5 or Section 6, respectively from
D-R Group,  Executive shall execute the Release Agreement in the form
attached hereto as
Schedule B; provided that Executive shall not be expected to waive
any rights accruing under this Agreement; and provided further that if Executive
refuses to sign such release Executive will still be bound to his obligations
under this Agreement.  Notwithstanding the foregoing, nothing
in the required release or in any other provision of this Agreement shall alter
any rights Executive may have (i) with regard to equity awards pursuant to the
controlling grant agreements and plan documents, and (ii) with regard to
indemnification rights that may exist by virtue of Executive’s previous
employment with the Company or service as an officer of D-R
Group.
 

      
        
           

        

        
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    8.           ENTIRE
AGREEMENT.  This Agreement sets forth the entire agreement
between the parties with respect to its subject matter hereof and merges and
supersedes all prior discussions, agreements and understandings of every kind
and nature between them with respect to said subject matter.  This
Agreement may not be changed or modified except by an agreement in writing,
signed by the parties hereto.

     

    9.           WAIVER.  The
failure of either party to this Agreement to enforce any of its terms,
provisions, or covenants shall not be construed as a waiver of the same or of
the right of such party to enforce the same.  Waiver by either party
hereto of any breach or default by the other party of any term or provision of
this Agreement shall not operate as a waiver of any other breach or
default.

     

    10.         SEVERABILITY.  In
the event that any one or more of the provisions of this Agreement shall be held
to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remainder of the Agreement shall not in any way be
affected or impaired thereby.  Moreover, if any one or more of the
provisions contained in this Agreement shall be held to be excessively broad as
to duration, activity or subject, such provisions shall be construed by limiting
and reducing them so as to be enforceable to the maximum extent allowed by
applicable law.

     

    11.         GOVERNING
LAW.  This Agreement shall be governed by and construed in
accordance with French Law.

     

    12.         JURISDICTION;
FORUM.  Any dispute arising out of all or part of the terms of
this Agreement will be subject to the jurisdiction of the French labor court
territorially that is competent pursuant to applicable legal provisions.

     

    13.         INTERPRETATION.  The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this
Agreement.  Whenever the words “include” or “including” are used in
this Agreement, they shall be deemed to be followed by the words “without
limitation.”

     

    14.         COUNTERPARTS.  This
Agreement will be executed in two counterparts, which, together, shall
constitute one and the same agreement.

     

    15.         CONFLICT.  In the event of a conflict between the
terms of this Agreement and the terms of any present plan, policy or procedure
of the Company or any agreement between the Company and Executive existing at
the time of this Agreement, including but not limited to a stock option
agreement or a restricted share agreement, the terms of this Agreement shall
take precedence and govern.

    
      
         

      

      
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    16.         TERM AND
TERMINATION.  The term of this Agreement (the “Term”) shall
commence on the Effective Date and end on the anniversary of the Effective Date
first following six months prior notice by the Company of its election to
terminate the Agreement, unless prior to the Company giving such notice or prior
to the date the Agreement would otherwise terminate, either:

     

    (a) the
employment of Executive is terminated by the Company for any reason other than
dismissal for serious or very serious misconduct (faute grave ou faute
lourde) (and provided that such termination
is not within two (2) years following a Change in Control as defined in Section
7), in which case the Term shall end on the last day of the one-year period
following the Date of Termination; or

     

    (b) a Change
in Control shall have occurred, in which case the Term shall end on the last day
of the two-year period beginning on the date following the occurrence of a
Change in Control

     

    (as applicable, the “Agreement Termination
Date”).  The rights and obligations of the parties hereunder arising
before, on, or after the Agreement Termination Date, including, without
limitation, the obligation of the Company to make payments pursuant to
Paragraphs 5 and 6, if any, and the obligations of the Executive to honor the
restrictive covenants shall survive the termination of the Agreement until fully
discharged or satisfied.

     

    [SIGNATURE PAGE FOLLOWS]

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have duly executed this
Agreement

     

    In
[location]

     

    On
[date]

     

    
      
        
          
            	
                    DRESSER-RAND
      S.A.

                  
	 
      	 
      
	
                    By:  

                  	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      	 
      
	
                    DRESSER-RAND
      GROUP INC.

                  
	 
      	 
      
	
                    By:

                  	 
      
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      	 
      
	
                    EXECUTIVE

                  
	 
      	 
      
	
                    By:

                  	
                    *

                  

          

        

      

    

    

    *: Signature preceded by the
mention: “lu et
approuvé, bon pour accord” (“read and approved, valid
for agreement”)

    
      
         

      

      
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    SCHEDULE
A

    

    For
purposes of the foregoing Agreement, the additional terms listed below shall
have the definitions indicated.

     

    
    

                           (a)  Standard
Severance Amount.  For purposes of this Agreement, “Standard Severance
Amount” shall mean an amount equal to ______ times Executive’s Base Salary
(determined as of the Date of Termination).

     

                           (b)  Change-In-Control
Severance Amount.  For purposes of this Agreement, “Change-In-Control
Severance Amount” shall mean an amount equal to ______ times Executive’s Base
Salary and annual incentive at target (determined as of the Date of
Termination).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
B

    

    DO
NOT SIGN PRIOR TO

    FINAL DAY OF
EMPLOYMENT

    

    RELEASE
AGREEMENT

    

    This
RELEASE AGREEMENT (“Release Agreement”)
is made between DRESSER-RAND GROUP INC., a Delaware corporation (the “Company”) and
Jean-Francois Chevrier (“Executive”).

    

    WITNESSETH

    

    WHEREAS, Executive and an affiliate of
the Company have entered into an Confidentiality, Non-Compete, Severance, and
Change In Control Agreement dated as of _______  ___, 2009 (the “Agreement”);

    

    WHEREAS, pursuant to Section 5 and 6 of
the Agreement, the Company has agreed to provide certain payments to Executive
if Executive executes this Release Agreement; and

    

    WHEREAS, this Release Agreement and the
Company's obligations under Sections 5 and 6 of the Agreement (as may be
applicable) shall become effective only upon the “Effective Date” of this
Release Agreement (as defined below).

    

    NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt of which is
mutually acknowledged, the Company and Executive agree as follows:

    

    1.           Release.

     

    (a)           Executive,
on behalf of himself, his heirs, executors, administrators, successors and
assigns, hereby irrevocably and unconditionally releases the Company and its
subsidiaries, divisions and Affiliates, together with their respective owners,
assigns, agents, directors, partners, officers, employees, attorneys and
representatives and any of their predecessors and successors and each of their
estates, heirs and assigns (collectively, the “Company Releasees”)
from any and all charges, complaints, claims, liabilities, obligations,
promises, agreements, causes of action, rights, costs, losses, debts and
expenses of any nature whatsoever, known or unknown, which Executive or his
heirs, executors, administrators, successors or assigns ever had, now have or
hereafter can, will or may have (either directly, indirectly, derivatively or in
any other representative capacity) by reason of any matter, fact or cause
whatsoever against the Company or any of the other Company Releasees from the
beginning of time to the date of this Release Agreement, except those claims
which can not be released as a matter of law.  This release includes,
without limitation, all claims arising out of, or relating to, Executive's
employment and/or end of his employment with the Company and all claims arising
under any federal, state and local labor, employment and/or anti-discrimination
laws including, without limitation, the federal Age Discrimination in Employment
Act, the Employee Retirement Income Security Act, the Americans with
Disabilities Act, Title VII of the Civil Rights Act of 1964, the Family and
Medical Leave Act, the Civil Rights Act of 1991, the Texas Commission on
Human Rights Act, and comparable federal, state, and local statutes and
ordinances, each as amended.  Notwithstanding the foregoing, this
release shall not include any ongoing obligations of the Company under the
Agreement (including but not limited to the
obligation to provide severance pay and benefits to the Executive under Sections
5 and 6 thereof) and any rights provided under the Company’s bylaws and the
Company’s benefit plans and agreements with Executive related
thereto, including but not limited to stock options, and restricted stock plans
and agreements. 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)           Executive
shall execute the Release Agreement on a date which is no earlier than the date
upon which Executive's employment is terminated.

     

    (c)           Executive
acknowledges and agrees that the Company has fully satisfied any and all
obligations owed to Executive arising out of Executive's employment with the
Company, exclusive of any ongoing obligations of
the Company under the Agreement (including but not limited to the obligation to
provide severance pay and benefits to the
Executive under Sections 5 and 6 thereof) and any rights provided under the
Company’s bylaws and the
Company’s benefit plans and agreements with Executive related
thereto, including but not limited to stock options, and
restricted stock plans and agreements.  Executive further
acknowledges and agrees that the Company and the other Company Releasees have
fully complied with their COBRA continuation coverage obligations.

     

    (d)           Executive
represents that he has no complaints, charges, or lawsuits pending against the
Company or any of the other Company Releasees.  Executive further
covenants and agrees that neither he nor his heirs, executors, administrators,
successors or assigns will be entitled to any Personal recovery in any
proceeding of any nature whatsoever against the Company or any of the other
Company Releasees arising out of any of the matters released in this Section
1.

     

    (e)           Executive
has resigned from all positions, if any, with the board of directors of the
Company and any officer and/or director positions of any parent, subsidiary, or
Affiliate of the Company.

     

    2.           Return of
Company Property.  Executive represents and agrees that
Executive has returned to the Company all property of the Company or any of the
Company Releasees, including, but not limited to, documents, contracts,
agreements, plans, photographs, books, notes, reports, files, memoranda, records
and software, credit cards, cardkey passes, door and file keys, computer access
codes or disks and instructional manuals, and other physical or electronic
property that Executive received and/or prepared or helped prepare in connection
with Executive's employment with the Company, and that Executive has not
retained any copies, duplicates, reproductions or excerpts
thereof.

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    3.           No
Admission of Wrongdoing.  Nothing herein is to be deemed to
constitute an admission of wrongdoing by the Company or any of the other Company
Releasees.

     

    4.           Consultation
with Attorney/Voluntary Agreement.  Executive acknowledges that
(i) the Company has advised Executive of his right to consult with an attorney
prior to executing this Release Agreement, (ii) Executive has carefully read and
fully understands all of the provisions of this Release Agreement, and (iii)
Executive is entering into this Release Agreement, including the releases set
forth in Paragraph 1 above, knowingly, freely and voluntarily in exchange for
good and valuable consideration.

     

    5.           Effective
Date.

     

    The date
on which Executive signs this Release Agreement  is referred to as the
“Effective
Date”.

     

    6.           Assignment.  This
Release Agreement is Personal to Executive and may not be assigned by
Executive.  This Agreement will inure to the benefit of the Company
and the other Company Releasees and their successors and assigns.

     

    7.           Waiver
and Amendments.  Any waiver, alteration, amendment, or
modification of any of the terms of this Release Agreement shall be valid only
if made in writing and signed by the parties hereto; provided, however, that any
such waiver, alteration, amendment, or modification is consented to on the
Company’s behalf by a properly authorized corporate officer.  No
waiver by either of the parties hereto of their rights hereunder shall be deemed
to constitute a waiver with respect to any subsequent occurrences or
transactions hereunder unless such waiver specifically states that it is to be
construed as a continuing waiver.

     

    8.           Severability
and Governing Law.  If any covenants or such other provisions
of this Release Agreement are found to be invalid or unenforceable by a final
determination of a court of competent jurisdiction (a) the remaining terms and
provisions hereof shall be unimpaired and (b) the invalid or unenforceable term
or provision hereof shall be deemed replaced by a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision hereof.  THIS RELEASE
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS, WITHOUT REGARD TO ITS CONFLICT OF LAW RULES.

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

    9.           Section
Headings and Definitions.  The headings contained in this
Release Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Release Agreement.  Whenever
the words “include” or “including” are used in this Release Agreement, they
shall be deemed to be followed by the words “without
limitation.”  Capitalized terms not defined in this Release Agreement
shall have the meaning given to such terms in the Agreement.

     

    10.         Entire
Agreement.  This Release Agreement and the Agreement constitute
the entire understanding and agreement of the parties hereto regarding the
employment of Executive.  This Release Agreement supersedes all prior
negotiations, discussions, correspondence, communications, understandings, and
agreements between the parties relating to the subject matter of this Release
Agreement.

     

    11.         Jurisdiction;
Forum.  Executive acknowledges that any disputes under the
Agreement or this Release Agreement shall be subject to the arbitration
provisions of Section 15 of the Agreement.  Subject to that provision,
by the execution and delivery of this Release Agreement, Executive submits to
the personal jurisdiction of any state or federal court in the State of Texas in
any suit or proceeding arising out of or relating to this Release
Agreement.  To the extent that Executive may acquire any immunity from
jurisdiction of any Texas court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of execution,
execution or otherwise) with respect to himself or his property, Executive
irrevocably waives such immunity in respect of his obligations with respect to
this Release Agreement.  Executive agrees that an appropriate,
convenient and non-exclusive forum for any and all disputes between the parties
hereto arising out of this Release Agreement or the transactions contemplated
hereby shall be in any state or federal court in the State of
Texas.

     

    12.         Counterparts.  This
Release Agreement may be executed in two or more counterparts, each of which
shall be deemed to be an original but all of which together shall constitute one
and the same instrument.  The execution of this Release Agreement may
be by actual or facsimile signature.

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Release Agreement as of the
dates indicated below.

    

    
      
        
          	
                  DRESSER-RAND
      GROUP INC.

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  By:

                	 
      	
                  Date

                
	
                  Title:

                	 
      	 
      
	 
      	 
      	 
      
	
                  Executive

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  Date

                

        

      

    

    
      
         

      

      
        B-5Unassociated Document

    

    

    Exhibit
10.1

    

    CONFIDENTIAL TREATMENT
REQUESTED

    Information
market by [***] has been omitted pursuant to a request for

    confidential
treatment.  The omitted portion has been separately filed
with

    the
Securities and Exchange Commission.

    

    

    SERVICE
AND PARTICIPATION AGREEMENT

     

    This
Service and Participation Agreement, dated as of September 3, 2009 (this “Agreement”), is made
by and between RedTag Live, LLC, an Illinois limited liability company (“RedTag”), Enable
Holdings, Inc., a Delaware corporation (“Parent”) and Lehman
Partners, Inc. (“Lehman”)].

    

    RECITALS:

     

    WHEREAS,
RedTag has requested, and Lehman has agreed, that Lehman provide certain
services and advance certain funds to and on behalf of RedTag on the terms set
forth herein;

     

    WHEREAS,
RedTag desires to have Lehman act as an agent to acquire the Merchandise and
Consigned Goods (in each case, as hereinafter defined) to be sold at an auction
event held approximately September 1, 2009 through September 15, 2009 (the
“Event”) at
6001 Powerline Road, Fort Lauderdale, Florida (the “Location”);

     

    WHEREAS,
Lehman is willing to act as an agent to acquire the Merchandise and Consigned
Goods and advance certain funds on behalf of RedTag, in accordance with the
terms and conditions of this Agreement.

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as
follows:

     

    
      
        	
              	
                1. 

              	
                DEFINITIONS

              

      

    

     

    For the
purposes of this Agreement, the terms listed in Exhibit A attached
hereto shall have the respective meanings indicated therein.

     

    
      
        	
              	
                2. 

              	
                ADVANCES

              

      

    

     

    2.1            (a)           From
time to time until the Event has been concluded, Lehman agrees, subject to the
terms and conditions set forth in this Agreement, to make Advances not to exceed
$[***]; provided that the
Advance Fee and any and all Advances shall be repaid to Lehman prior to payment
of the Remaining Expenses and any other expenses, costs or profits other than
payments made for sales tax collected and warranties sold.  It is
acknowledged and agreed that, as of the date hereof, Lehman has made aggregate
Advances described on Schedule 2.1
hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           RedTag
and Parent acknowledge and agree that any Advance requested by RedTag shall be
in writing and delivered to Lehman at least two (2) business days prior to the
requested funding of each Advance and, notwithstanding anything to the contrary
set forth herein, any Advance may be refused by Lehman in its sole
discretion.

     

    (c)           Other
than as included on Schedule 2.1, Lehman
agrees that it shall not make any single payment as an Advance in an amount in
excess of $10,000 without RedTag or Parent approval.

     

    (d)           Advances
will not be evidenced by a promissory note, and a copy of Lehman’s books and
records related to the Advances shall constitute prima facie evidence
of the outstanding amounts of the Advances.  In addition to the other
obligations of RedTag and Parent hereunder, the Advances shall be secured by all
of the Collateral.  All Advances shall be repaid to Lehman from the
Designated Account.  If not sooner paid to Lehman from the Designated
Account, and prior to any payment of the Net Collection Amount, the Advances
shall be due and payable, together with the Advance Fee, on the Termination
Date.  Other than the Advance Fee, the principal amount of the
Advances shall not bear interest.

     

    2.2            RedTag
and Parent acknowledge and agree that each Advance shall be subject to the
satisfaction of the following conditions precedent, in each case, in form and
substance satisfactory to Lehman:

     

    (a)           This
Agreement and each of the other Transaction Documents shall have been duly
executed and delivered by the respective parties thereto, shall be in full force
and effect and shall be in form and substance satisfactory to
Lehman;

     

    (b)           This
Agreement (and any other Security Documents) shall be effective to create in
favor of Lehman, a legal, valid and enforceable first priority perfected
security interest in and lien upon the Collateral.  All filings,
recordings, deliveries of instruments and other actions necessary or desirable
in the opinion of Lehman to protect and preserve such security interests shall
have been duly effected; and

     

    (c)           Lehman
shall have received certificates of insurance from an independent insurance
broker dated no later than ten (10) days prior to the Event, naming Lehman as
loss payee and/or additional insured, as applicable, identifying insurers, types
of insurance, insurance limits, and policy terms, and otherwise describing the
insurance obtained in accordance with the provisions of Section
9.

     

    
      	
            	
              3.

            	
              APPOINTMENT
      OF LEHMAN AS AGENT

            

    

     

    3.1            RedTag
hereby appoints Lehman, and Lehman hereby agrees to serve, as RedTag’s agent for
the limited purpose of acquiring Merchandise and Consigned Goods for the Event
in accordance with the terms and conditions of this
Agreement.   

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.2           RedTag and Lehman hereby agree that (i)
Lehman shall be authorized to take any and all actions as may be necessary or
desirable to implement this Agreement and each of the transactions contemplated
hereby; (ii) Lehman shall be entitled to purchase all Merchandise and obtain all
Consigned Goods for the event; (iii) Lehman shall have the right to use and
access the Location and all related services, furniture, fixtures, equipment and
other assets of RedTag as designated hereunder for the purpose of delivering, or
causing the delivery of, the Merchandise and Consigned Goods; (iv) Lehman shall
be granted a limited license and right to use until the Termination Date all
trade names, logos and customer lists relating to and used in connection with
the operation of RedTag’s business, solely for the purpose of advertising,
purchasing, obtaining and selling the Merchandise and Consigned Goods in
accordance with the terms of this Agreement; (v) RedTag shall use its best
efforts to ensure that all utilities, landlords, creditors and all persons
acting for or on its behalf shall not interfere with or otherwise impede the
conduct of the purchase and/or sale of the Merchandise and Consigned Goods,
institute any action in any court which in any way directly or indirectly
interferes with or obstructs or impedes the conduct of the purchase and/or sale
of the Merchandise and the Consigned Goods and (vi) neither RedTag, nor Parent, nor
any party other than Lehman shall purchase any Merchandise or obtain any
Consigned Goods (other than the Consigned Goods described on Schedule
3.2 hereto) for the event,
except as consented to in writing by Lehman in advance.

     

    3.3           Purchases of Merchandise by Lehman may
or may not be evidenced by a purchase order, receipt or bill of sale and a copy
of Lehman’s books and records related to the purchase of the Merchandise shall
constitute prima facie evidence of the outstanding amounts of the
Merchandise.  In addition to the other obligations of RedTag and
Parent hereunder, the purchase price of the Merchandise shall be secured by all
of the Collateral.  If not sooner paid by set off against the proceeds
of the Merchandise prior to payment of the Net Collection Amount, as provided
herein, the purchase price of the Merchandise shall be due and payable, together
with all fees and costs related thereto, if any, on the Termination
Date.  The parties anticipate that Lehman will acquire Merchandise in
an aggregate amount of approximately $[***].

     

    
      	
            	
              4. 

            	
              DISPOSITION
      OF THE MERCHANDISE; PRICING

            

    

     

    4.1           RedTag,
Parent and Lehman agree that they will cooperate in the advertisement and sale
of the Merchandise and Consigned
Goods, whether for the Event or thereafter.  In disposing of
the Merchandise and Consigned
Goods, RedTag and Parent agree that they shall provide:

     

    (a)           all
customer lists and mailing lists of RedTag and Parent, computer hardware and
software, existing supplies located at the Location, intangible assets
(including RedTag’s name and logo), and keys required to gain access to and
operate the Location, and any other assets of RedTag or Parent located at the
Location (whether owned, leased, or licensed);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           the
use of Parent’s central office facilities, central administrative services and
personnel to provide services necessary for the sale of the Merchandise and
Consigned Goods to the
extent that such services are normally provided by Parent to RedTag in
connection with events similar to the Event;

     

    (c)           such
personnel, cashier, staff and supervisors as necessary to run the Event and
perform such other services necessary or appropriate in connection with the sale
of the Merchandise and Consigned
Goods (“Event
Employees”); and

     

    (d)           as
needed for shipping, receiving and storing the Merchandise and Consigned Goods, the provision of
temporary labor resources.

     

    4.2           RedTag
acknowledges and agrees that Lehman may continue to purchase and sell inventory
unrelated to this Agreement and not included as “Merchandise” or “Consigned
Goods” hereunder.  

     

    4.3           Lehman
acknowledges and agrees that RedTag and Parent may continue to purchase and sell
inventory unrelated to this Agreement and not included as “Merchandise” or
“Consigned Good” hereunder.

     

    
      	
            	
              5. 

            	
              EXPENSES

            

    

     

    5.1           Notwithstanding
anything contained herein, all expenses incurred by Lehman in connection with
the purchase and sale of the Merchandise and Consigned Goods (collectively,
the “Lehman
Expenses”) shall be paid to Lehman in the priority set forth in Section 6.2,
including, without limitation (but excluding legal expenses incurred by Lehman
in connection with the negotiation, execution and performance of this Agreement,
which shall be paid by Lehman):

     

    (a)
advertising expenses, if such advertising is paid for by Lehman, (including
direct media costs, agency fees and production costs);

     

    (b) all
Advances made by Lehman not otherwise included in this Section 5.1 (and as
contemplated by Section 2
hereof);

     

    (c) any
and all costs relating to shipping of the Merchandise and Consigned Goods (including
supplies); and

     

    (d) any
and all other expenses incurred by Lehman in connection with the Event and, to
the extent any single expense is greater than $10,000, approved by RedTag or
Parent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2           All
other expenses incurred in connection with the Event and approved by Lehman
after consultation between RedTag and Lehman (collectively, the “Remaining Expenses”),
shall be paid in the priority set forth in Section 6.2,
including, without limitation (but excluding legal expenses incurred by RedTag
or Parent in connection with the negotiation, execution and performance of this
Agreement, which shall be paid by RedTag or Parent):

     

    (a)
payroll and related employee benefits of any Event Employees,

     

    (b) any
finder’s fee and sales commissions to third parties;

     

    (c)
security costs;

     

    (d) all
occupancy costs (e.g. rent, percentage rent, CAM charges, HVAC charges, real
estate taxes, etc.) relative to the Locations;

     

    (e)
insurance;

     

    (f)
telephone and utilities charges; and

     

    (g) any
and all costs relating to shipping, receiving and storing the Merchandise and
Consigned Goods (including
supplies).

     

    5.3           Lehman
and RedTag shall mutually agree on an accepted bonus pool, if any, for the Event
Employees based upon the Net Collection Amount.

     

    
      	
            	
              6. 

            	
              SALE
      PROCEEDS; SETTLEMENT;

            

    

     

    6.1           All
proceeds of sales of Merchandise and Consigned Goods shall be deposited, on a
daily basis, in a deposit account established by Lehman (the “Designated
Account”).

     

    6.2           Immediately
following the conclusion of the Event, Lehman and RedTag shall cooperate
reasonably and reconcile the results of sales of Merchandise and Consigned Goods
for the Event.  As promptly as practicable, and in any event within
five (5) business days, following such reconciliation, Lehman shall make the
following payments from the Designated Account, in the following order of
priority and to the extent not already paid from the Designated
Account:

     

    (a)           first,
to Lehman, the Advance Fee and the aggregate amount of all
Advances;

     

    (b)           next,
to Lehman, the aggregate cost of the Merchandise purchased by Lehman pursuant to
Section 3
hereof, including, sales, excise, or gross receipts taxes, sales commissions,
customer returns, shortages, and customer allowances;

     

    (c)           next,
to Lehman fifty percent (50%) of the Lehman Service Fee;

     

    (d)           next,
to the respective consignors of the Consigned Goods, fifty percent (50%) of the
Required Consignor Payments;

     

    (e)           next,
to the extent not yet paid, because such Event Employees shall be paid on an
ongoing basis during the Event, to those Event Employees and other individuals,
and in such proportion and amount, as mutually agreed by RedTag and Lehman, the
Agreed Employee Wages (if any);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)           next,
to Lehman, the aggregate amount of all Lehman Expenses which, to the extent
subject to approval, have been approved by RedTag;

     

    (g)           next,
to RedTag, the Remaining Expenses which have been approved by
Lehman;

     

    (h)           next,
to Lehman, the remaining fifty percent (50%) of the Lehman Service
Fee;

     

    (i)           next,
to the respective consignors of the Consigned Goods, the remaining fifty percent
(50%) of the Required Consignor Payments; and

     

    (j)           next,
to each of RedTag and Lehman, fifty percent (50%) of the Net Collection
Amount.

     

    
      	
            	
              7. 

            	
              REDTAG
      AND PARENT EMPLOYEES

            

    

     

    All
employees of RedTag, Parent and their affiliates shall be and remain employees
of RedTag, Parent and such affiliates, and Lehman shall have no liability to any
such employees (including any former employees) of any kind or nature
whatsoever, including without limitation, with respect to severance pay,
termination pay, vacation pay, pay in lieu of reasonable notice of termination,
or any other expenses or liability arising from the employment of such employees
prior to, during, and subsequent to the transactions contemplated by this
Agreement.

     

    
      
        	
              	
                8. 

              	
                REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF
REDTAG

              

      

    

    

    8.1           RedTag
hereby represents, warrants and covenants in favor of Lehman as
follows:

     

    (a)           RedTag
(i) is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Illinois; (ii) has all requisite limited
liability company power and authority to own, lease and operate its assets and
properties and to carry on its business as presently conducted; and (iii) is and
will continue to be, duly authorized and qualified to do business and in good
standing in each jurisdiction where the nature of its business or properties
requires such qualification, including Florida, except, in each case, to the
extent that the failure to be in good standing or so qualified could not
reasonably be expected to have a material adverse effect on the ability of
RedTag to execute and deliver this Agreement and perform fully its obligations
hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           RedTag
has the right, power and authority to execute and deliver the Transaction
Documents and each other document and agreement contemplated hereby or thereby
and to perform fully its obligations hereunder and thereunder.  RedTag
has taken all necessary actions required to authorize the execution, delivery
and performance of the Transaction Documents, and no further consent or approval
on the part of RedTag is required for RedTag to enter into and deliver the
Transaction Documents, to perform its obligations thereunder, and to consummate
the transactions contemplated by this Agreement. Each of the Transaction
Documents has been duly executed and delivered by RedTag and constitutes the
legal, valid and binding obligation of RedTag enforceable in accordance with its
terms.  No court order or decree of any federal, state, local, or
provincial governmental authority or regulatory body is in effect that would
prevent or materially impair, or is required for RedTag’s consummation of, the
transactions contemplated by this Agreement, and no consent of any third party
which has not been obtained is required therefor.  No contract or
other agreement to which RedTag is a party or by which RedTag is otherwise bound
will prevent or materially impair the consummation of the transactions
contemplated by this Agreement.

     

    (c)           Except
for any liens granted under the Transaction Documents, RedTag shall not create,
incur, assume or suffer to exist any security interest, lien or other charge or
encumbrance upon or with respect to any of the Merchandise or Consigned Goods or the proceeds
thereof.

     

    (d)           RedTag
has not transferred to or from the Location, any merchandise or goods outside
the ordinary course in anticipation of the transactions contemplated by this
Agreement, except that Merchandise and Consigned Goods which have been
or will be moved to the Location.

     

    (e)           During
the Event, Lehman shall have the right to the unencumbered use and occupancy of,
and peaceful and quiet possession of, the Location and any other storage
locations of the Merchandise, the assets currently located at such locations,
and the services provided at such locations.  RedTag shall throughout
maintain or cause to be maintained in a manner consistent with its customary and
historic practices, at its sole expense, all heating systems, air conditioning
systems, elevators, escalators, alarm systems, and all other mechanical devices
used in the ordinary course of operation of the Location.

     

    (f)           RedTag
had paid and will continue to pay, all self-insured or RedTag funded employee
benefit programs for RedTag employees, including health and medical benefits and
insurance and all proper claims made or to be made in accordance with such
programs.

     

    (g)           There
are no actions, suits, proceedings or investigations of any kind pending, or, to
the knowledge of RedTag, threatened against RedTag or Parent before any court,
tribunal or administrative agency or board, which if adversely determined would
have a material adverse effect on the transactions contemplated by this
Agreement and the other Transaction Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)           RedTag
is in material compliance with all laws and regulations applicable to it, its
business and properties, including, but not limited to any laws or regulations
promulgated by U.S. Department of Homeland Security and relating to U.S. Customs
and any law or regulation relating to import and exports.  RedTag has
all licenses, permits, orders and approvals that are required under any
governmental law or regulation in connection with RedTag’s business and
properties (the “Permits”).  No
notice of any violation has been received with respect of any Permits and no
proceeding is pending or, to RedTag’s knowledge, threatened to terminate, revoke
or limit any such Permits.

     

    (i)           All
filings, assignments, pledges and deposits of documents or instruments have been
made and all other actions have been taken that are necessary or advisable,
under applicable law, to establish and perfect Lehman’s first priority lien and
security interest in the Collateral.  The Collateral and Lehman’s
rights with respect to the Collateral are not subject to any setoff, claims,
withholdings or other defenses.  The Collateral is free from any lien,
except for the liens granted therein to Lehman pursuant to the Security
Documents.

     

    (j)           RedTag
will duly and punctually pay or cause to be paid when due all of the Remaining
Expenses, if not originally incurred and paid for by
RedTag.  Notwithstanding the foregoing, if RedTag shall fail to pay or
cause to be paid when due any of the Remaining Expenses, Lehman may, in its sole
discretion, from the Designated Account pay or cause to be paid on behalf of
RedTag any of the Remaining Expenses, in which case such amount shall be
deducted from RedTag’s allocation of the Net Collection Amount.

     

    (k)           RedTag
shall permit Lehman and any of its agents or employees, to visit, inspect and
conduct examinations and verifications of the Merchandise and the contents of
the Location, all at such reasonable times and intervals and with prior written
notice as Lehman shall reasonably request.

    

    
      
        	
              	
                9.

              	
                REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF
      LEHMAN

              

      

    

    

    9.1           Lehman
hereby represents, warrants and covenants in favor of Lehman as
follows:

     

    (a)           Lehman
(i) is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Florida; (ii) has all requisite limited
liability company power and authority to own, lease and operate its assets and
properties and to carry on its business as presently conducted; and (iii) is and
will continue to be, duly authorized and qualified to do business and in good
standing in each jurisdiction where the nature of its business or properties
requires such qualification, including Florida, except, in each case, to the
extent that the failure to be in good standing or so qualified could not
reasonably be expected to have a material adverse effect on the ability of
Lehman to execute and deliver this Agreement and perform fully its obligations
hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           Lehman
has the right, power and authority to execute and deliver the Transaction
Documents and each other document and agreement contemplated hereby or thereby
and to perform fully its obligations hereunder and thereunder.  Lehman
has taken all necessary actions required to authorize the execution, delivery
and performance of the Transaction Documents, and no further consent or approval
on the part of Lehman is required for Lehman to enter into and deliver the
Transaction Documents, to perform its obligations thereunder, and to consummate
the transactions contemplated by this Agreement. Each of the Transaction
Documents has been duly executed and delivered by Lehman and constitutes the
legal, valid and binding obligation of Lehman enforceable in accordance with its
terms.  No court order or decree of any federal, state, local, or
provincial governmental authority or regulatory body is in effect that would
prevent or materially impair, or is required for Lehman’s consummation of, the
transactions contemplated by this Agreement, and no consent of any third party
which has not been obtained is required therefor.  No contract or
other agreement to which Lehman is a party or by which Lehman is otherwise bound
will prevent or materially impair the consummation of the transactions
contemplated by this Agreement.

     

    (c)           Except
for any liens granted under the Transaction Documents, Lehman shall not create,
incur, assume or suffer to exist any security interest, lien or other charge or
encumbrance upon or with respect to any of the Merchandise or Consigned Goods or the proceeds
thereof.

     

    (d)           Lehman
has not transferred to or from the Location, any merchandise or goods outside
the ordinary course in anticipation of the transactions contemplated by this
Agreement, except that Merchandise and Consigned Goods which have been
or will be moved to the Location.

     

    (e)           There
are no actions, suits, proceedings or investigations of any kind pending, or, to
the knowledge of Lehman, threatened against Lehman before any court, tribunal or
administrative agency or board, which if adversely determined would have a
material adverse effect on the transactions contemplated by this Agreement and
the other Transaction Documents.

     

    (f)           Lehman
is in material compliance with all laws and regulations applicable to it, its
business and properties, including, but not limited to any laws or regulations
promulgated by U.S. Department of Homeland Security and relating to U.S. Customs
and any law or regulation relating to import and exports.  Lehman has
all Permits that are required under any governmental law or regulation in
connection with Lehman’s business and properties.  No notice of any
violation has been received with respect of any Permits and no proceeding is
pending or, to Lehman’s knowledge, threatened to terminate, revoke or limit any
such Permits.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	
                10. 

              	
                INSURANCE

              

      

    

     

    10.1           RedTag
shall continue, in such amounts as it currently has in effect, all of its
liability insurance policies including, but not limited to, products liability,
comprehensive public liability, auto liability and umbrella liability insurance,
covering injuries to persons and property in, or in connection with the Location
and its other premises, and shall cause Lehman to be named an additional named
insured with respect to all such policies.  Pursuant to Section 2.2(c),
RedTag shall deliver to Lehman certificates evidencing such insurance setting
forth the duration thereof and naming Lehman as an additional insured, in form
reasonably satisfactory to Lehman.  All such policies shall require at
least thirty (30) days prior notice to Lehman of cancellation, non-renewal or
material change.  In the event of a claim under any such policies
RedTag shall be responsible for the payment of all deductibles, retentions or
self-insured amounts to the extent said claim
arises from or relates to the alleged acts or omissions of RedTag or its
employees, agents or independent contractors.

     

    10.2           RedTag
shall continue, in an amount not less than Two Million Dollars ($2,000,000),
fire, flood, theft and extended coverage casualty insurance covering the
Merchandise and Consigned Goods in a total amount equal to no less than the cost
value thereof.  All such policies shall name Lehman as loss
payee.  In the event of a loss to the Merchandise or the Consigned
Goods on or after the date of this Agreement, the proceeds of such insurance
attributable to the Merchandise and Consigned Goods (plus the amount
of  any deductible) shall constitute proceeds of sales of Merchandise
and Consigned Goods.  Pursuant to Section 2.2(c),
RedTag shall deliver to Lehman certificates evidencing such insurance setting
forth the duration thereof and naming Lehman as loss payee, in form and
substance reasonably satisfactory to Lehman.  All such policies shall
require at least thirty (30) days prior notice to Lehman of cancellation,
non-renewal or material change.  RedTag shall not make any change in
the amount of any deductibles or self-insurance amounts prior to the Termination
Date without Lehman’s prior written consent.

     

    10.3           RedTag
shall continue until the Termination Date, in such amounts as it currently has
in effect, worker’s compensation insurance (including employer liability
insurance) covering all Event Employees in compliance with all statutory
requirements.

     

    
      	
            	
              11. 

            	
              INDEMNIFICATION

            

    

     

    11.1           RedTag
and Parent, jointly and severally, shall indemnify and hold Lehman and its
officers, directors, employees, agents and independent contractors
(collectively, “Lehmann Indemnified
Parties”) harmless from and against all claims, demands, penalties,
losses, liability or damage, including, without limitation, reasonable
attorneys’ fees and expenses, suffered directly or indirectly by Lehman
resulting from, or related to:

     

    (a)           RedTag’s
breach of or failure to comply with any of its agreements, covenants,
representations or warranties contained in any Transaction
Document;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           any
and all claims, actions and suits, including, but not limited to any product
liability claim, action or suit, whether groundless or otherwise, and from and
against any and all liabilities, losses, damages and expenses of every nature
and character arising out of or relating to RedTag’s previous dealings with any
third party relative to the potential sale of any Merchandise or Consigned Goods
and any commissions owed to sales agents or brokers from sales of the
Merchandise or Consigned Goods;

     

    (c)           any
failure of RedTag to pay to RedTag employees or Event Employees any wages,
salaries or benefits due to such employees, or other claims asserted against
Lehman by RedTag employees or Event Employees;

     

    (d)           any
failure by RedTag to pay any taxes to the proper taxing authorities or to
properly file with any taxing authorities any reports or documents required by
applicable law to be filed in respect thereof;

     

    (e)           any
failure by RedTag to pay the Remaining Expenses; and

     

    (f)           the
gross negligence or willful misconduct of RedTag or any of its officers,
directors, employees, agents (other than Lehman) or
representatives.

     

    11.2           Lehman
shall indemnify and hold RedTag and its officers, directors, employees, agents
and representatives harmless from and against all claims, demands, penalties,
losses, liability or damage, including, without limitation, reasonable
attorneys’ fees and expenses, suffered directly or indirectly by RedTag
resulting from, or related to:

     

    (a)           Lehman’s
material breach of any of its agreements, covenants, representations or
warranties contained in any Transaction Document;

     

    (b)           any
and all claims, actions and suits, including, but not limited to any product
liability claim, action or suit, whether groundless or otherwise, and from and
against any and all liabilities, losses, damages and expenses of every nature
and character arising out of or relating to Lehman’s previous dealings with any
third party relative to the potential sale of any Merchandise or Consigned Goods
and any commissions owed to sales agents or brokers from sales of the
Merchandise or Consigned Goods;

     

    (c)           the
gross negligence or willful misconduct of Lehman or any of its officer,
directors, employees, agents or representatives.

     

    
      	
            	
              12. 

            	
              TERMINATION;
      SETOFF

            

    

     

    12.1           This
Agreement shall terminate upon the earlier of (i) in the event of a breach of
the Transaction Documents by RedTag, by written notice from Lehman to RedTag,
(ii) in the event of a breach of the Transaction Documents by Lehman, by written
notice from RedTag to Lehman and (iii) the mutual agreement of RedTag and Lehman
((i), (ii), and (iii) as applicable, the “Termination
Date”).  In the event this Agreement is Terminated, on the
Termination Date, all amounts set forth in Sections 6.2(a)-(c),
6.2(f) and
6.2(h), plus
any amounts payable to Lehman from the Net Collection Amount shall become
immediately due and payable.  If, as of the Termination Date or the
conclusion of the Event, Lehman has not received payment in full of the amounts
required to be paid pursuant to Sections 6.2(a)-(c),
6.2(f) and
6.2(h) (such
remaining amounts due, the “Outstanding
Payments”), then RedTag and Parent shall exercise best efforts to sell as
promptly as practicable any remaining Merchandise and Consigned Goods (in the
case of Consigned Goods, to the extent not returned to the respective
consignors) and shall pay to Lehman the Outstanding Payments from the proceeds
of such sales; provided that, to the extent any proceeds from such future sales
of Merchandise and Consigned Goods (in the case of Consigned Goods, to the
extent not returned to the respective consignors) exceed the Outstanding
Payments, Lehman and RedTag shall split such proceeds evenly following payment
to Lehman of the Outstanding Payments.  

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              13. 

            	
              MISCELLANEOUS

            

    

     

    13.1           Any
notice or other communication under this Agreement shall be in writing and may
be delivered personally or sent by facsimile or by prepaid registered or
certified mail.

     

    13.2           This
Agreement shall be governed by and interpreted in accordance with the internal
laws of the State of Florida, without reference to any conflict of laws
provisions.  The parties hereto agree that only courts sitting in
Broward County Florida and Federal Courts of the United States of America
located in Broward County, Florida shall retain jurisdiction to hear and finally
determine any disputes arising from or under this Agreement, and by execution of
this Agreement each party hereby irrevocably accepts and submits to the
jurisdiction of such courts with respect to any actions or proceeding and no
service of process by certified mail, return receipt requested to the address
listed above for each party.

     

    13.3           In
the event any term or provision contained within this Agreement shall be deemed
illegal or unenforceable, then such offending term or provision shall be
considered deleted from this Agreement and the remaining terms shall continue to
be in full force and effect.

     

    13.4           This
Agreement, together with the Transaction Documents, constitutes the entire
agreement between the parties with respect of the subject matter hereof and
supersedes all prior negotiations and understandings, and can only be modified
by a writing signed by RedTag and Lehman.

     

    13.5           RedTag
shall not assign this Agreement without the express written consent of
Lehman.  This Agreement shall inure to the benefit of, and be binding
upon, the parties and their respective successors and permitted
assigns.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    13.6           This
Agreement may be executed in several counterparts, each of which when so
executed shall be deemed to be an original and such counterparts, together,
shall constitute one and the same instrument.  Delivery by facsimile
of this Agreement or an executed counterpart hereof shall be deemed a good and
valid execution and delivery hereof or thereof.

     

    

     

    [SIGNATURES
TO FOLLOW]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the undersigned
parties have executed this Service and Participation Agreement as of the date
above first written.

     

    
       

      
        
          	 	LEHMAN PARTNERS,
      INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	Name:	 	 
	 	Title:	Manager	 
	 	 	 	 

        

      

    

    
       

      
        
          	 	REDTAG LIVE,
    LLC	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

        

         

        
          
            	 	ENABLE HOLDINGS,
      INC.	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          
 

      

    

    EXHIBIT
A

    

    

    Definitions

    

    “Advance” shall mean
any and all funds provided by Lehman on behalf of RedTag and/or Parent to pay
expenses related to the Event, which shall be subject to the prior approval of
Lehman.

     

    “Advance Fee” shall
mean an amount equal to $[***].

     

    “Agreed Employee
Wages” shall mean reasonable and customary wages for Event Employees
payable for services provided in connection with the Event.

     

    “Collateral” means all property and
rights of RedTag and Parent in the Merchandise and Consigned Goods, including
proceeds from the sale thereof.

     

    “Consigned Goods”
shall mean each item of goods and inventory which have been acquired through
Lehman and have been accepted for consignment and presented for sale at the
Event, whether or not sold at the Event.

     

    “Lehman Service Fee”
shall mean an amount equal to $[***] in consideration of the services provided
by Lehman pursuant to this Agreement.

     

    “Merchandise” shall
mean each item of goods and inventory presented for sale at the Event, whether
or not sold at the Event, excluding Consigned Goods.

     

    “Net Collection
Amount” shall mean (i) the total amount (in dollars) of all proceeds of
sales of Merchandise, plus (ii) the total
amount (in dollars) of all proceeds of sale of Consigned Goods, plus (iii) all
proceeds of fire, flood or other insurance covering the Merchandise, the
Consigned Goods, the Event and/or the Location in the event of a casualty event
affecting the Merchandise, the Consigned Goods, the Location or otherwise, plus (iv) the total
amount (in dollars) of all proceeds of sales of warranties for Merchandise and
Consigned Goods, less (v) the cost of
the Merchandise purchased by Lehman pursuant to Section 3 hereof,
including, sales, excise, or gross receipts taxes, sales commissions, customer
returns, shortages, warranty reserves and customer allowances, less (vi) the
Required Consignor Payments, less (vii) the Lehman Expenses, less (viii) the
Remaining Expenses, less (ix) the Lehman
Service Fee, less (x) all Advances
and the Advance Fee and less (xi) Agreed
Employee Wages.

     

    “Obligations” shall
mean all indebtedness, obligations and liabilities of RedTag and/or Parent to
Lehman, whether existing on the date of this Agreement or arising thereafter,
direct or indirect, absolute or contingent, matured or unmatured, liquidated or
unliquidated, secured or unsecured, arising by contract, operation of law or
otherwise, arising or incurred under this Agreement or any of the other
Transaction Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Required Consignor
Payments” shall mean collectively the total amount (in dollars) required
to be paid to the consignors of Consigned Goods as a result of the sale of such
Consigned Goods.

     

    “Security Documents”
shall mean collectively, any and all instruments and documents, including
without limitation Uniform Commercial Code financing statements, and other
equivalent registrations and personal property security filings with respect to
any other applicable jurisdiction, control agreements and the like, required to
be executed or delivered pursuant to, or in connection with, this Agreement or
any other Transaction Document.

     

    “Transaction
Documents” means, collectively, this Agreement, all landlord waivers,
bailee agreements, assignments, other encumbrances or agreements which now or
hereafter secure or relate to the collateral security for the Obligations, any
guaranties of the Obligations, and any other agreements entered into between or
among RedTag, Parent or any other guarantor of the Obligations and Lehman
relating to or in connection with this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
2.1

    

    [***]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
3.2

    

    [***]

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