Document:

Executive Employment Agreement - Gregory S. Furness, Chief Financial Officer

 Exhibit 10.3 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AGREEMENT, dated the 16th day of June, is by and between Delphax Technologies, Inc. (“Company”), a Minnesota corporation, and Gregory S. Furness
(“Executive”), a Minnesota resident. 
 RECITALS 
 A. The Company desires to employ Executive in the capacity of Chief Financial Officer (“CFO”). 
 B. Executive desires to be employed by the Company, with duties and responsibilities commensurate with Executive’s education and background, and
compensation and other benefits at levels that reflect Executive’s contributions to the Company. 
 In consideration of the
parties’ mutual covenants and undertakings contained in this Agreement, the Company and Executive agree as follows: 
 ARTICLE I.

 DEFINITIONS 
 Capitalized terms used in the Agreement shall have their defined meaning throughout the Agreement. The following terms shall have the meanings set forth below, unless the context clearly requires otherwise. 
 1.1 “Agreement” means this Executive Employment Agreement, as from time to time amended. 
 1.2 “Base Salary” means the total annual cash compensation payable on a regular periodic basis, without regard to voluntary or mandatory
deferrals. 
 1.3 “Beneficiary” means the person or persons designated in writing to the Company by Executive to receive
benefits payable after Executive’s death. In the absence of such designation or in the event that all of the persons so designated predecease Executive, Beneficiary means the executor, administrator or personal representative of
Executive’s estate. 
 1.4 “Board” means the Board of Directors of the Company. 

 1.5 “Cause” has the meaning set forth at paragraph 4.2 of this Agreement.

 1.6 “Change in Control” means: 
  

	 	(a)	the Company consummates a merger, consolidation, share exchange, division or other reorganization of the Company with any corporation or entity (other than an entity owned at least
80% by the Company) in which the Company is not the surviving entity or 50% of the Company’s then existing Board is replaced; or 

  

	 	(b)	the shareholders of the Company approve an agreement for the sale or disposition (in one transaction or a series of transactions) of assets of the Company, the total consideration
of which is greater than 51% of the total fair market value of the Company; or 

  

	 	(c)	the shareholders of the Company approve an agreement for the sale or disposition (in one transaction or a series of transactions) of stock in the Company, the total sale or
disposition of which is greater than 51% of the total common stock of the Company; or 

  

	 	(d)	the Company adopts a plan of complete liquidation or winding-up of the Company. 

 Such definition shall not include an Initial or follow-up Public Offering by Company or additional equity capital obtained by the Company pursuant to the approval of a majority of the Board. 
 1.7. “Confidential Information” means information that is proprietary to the Company or proprietary to others and entrusted to the
Company, whether or not trade secrets. Confidential Information includes, but is not limited to, information relating to business plans and to business as conducted or anticipated to be conducted, and to past or current or anticipated products.
Confidential Information also includes, without limitation, information concerning research, development, purchasing, accounting, marketing, selling and services. All information that Executive has a reasonable basis to consider confidential is
Confidential Information, whether or not expressly designated as such, whether or not originated by Executive and without regard to the manner in which Executive obtains access to this and any other proprietary information. 
 1.8 “Date of Termination” has the meaning set forth at paragraph 4.6(b) of this Agreement. 

 1.9 “Disability” means the unwillingness or inability of Executive to perform
Executive’s duties under this Agreement because of incapacity due to physical or mental illness, bodily injury or disease. 
 1.10 “Executive” means Gregory S. Furness. 
 1.11 “Good Reason to Terminate
Employment” means termination of employment that also involves any one or more of the following: 
 (a) An adverse change in
Executive’s status or position as a result of a substantial diminution in Executive’s duties, responsibilities or authority as of the date of this Agreement; 
 (b) A reduction by the Company in Executive’s Base Salary as in effect as of the date of commencement of this Agreement or as the same may be increased from time to time, or a change in the eligibility
requirements or performance criteria under any Plan under which Executive is covered on or immediately prior to the date of this Agreement, which adversely affects Executive’s participation or materially reduces Executive’s benefits under
any Plan; 
 (c) The Company’s requiring Executive to be based anywhere other than the Minneapolis-St. Paul metropolitan area, except
for required travel on the Company’s business; or 
 (d) The failure by the Company to obtain from any Successor its assent to this
Agreement as contemplated by paragraph 6.1. 
 1.12 “Plan” means any plan, program, policy or arrangement sponsored,
maintained or contributed to by the Company to which the Company is a party or under which employees of the Company are covered, including, without limitation, any employee benefit plan, such as thrift, pension, profit sharing, deferred
compensation, medical, dental, disability, accident, life insurance, fringe benefit, vacation, sick or parental leave, severance plan or policy or any other agreement, plan, program, policy or arrangement intended to benefit employees or executive
officers of the Company. 
  

	 	1.13	“Successor” means any corporation, individual, group, association, partnership, firm, venture, or other entity or person that, subsequent to the date thereof,
succeeds to the actual or practical ability to control, all or substantially all of the Company’s business and/or assets, directly or indirectly, by merger, consolidation, purchase, liquidation, redemption, assignment, similar corporation
transaction, operation of law or otherwise. 

 ARTICLE II 
 EMPLOYMENT, DUTIES AND TERM 
 2.1 Employment. Upon the terms and conditions set forth in this
Agreement, the Company hereby employs Executive, and Executive accepts such employment. Except as expressly provided herein, termination of this Agreement by either party shall also terminate Executive’s employment by the Company. 

2.2 Duties. During the term of this Agreement, and excluding any periods of vacation, sick, disability or other leave to which Executive is
entitled, Executive agrees to devote reasonable attention and time to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to Executive hereunder, to use Executive’s reasonable best
efforts to perform faithfully and efficiently such responsibilities. During the term of this Agreement, it shall not be a violation of this Agreement for Executive to serve on corporate, civic or charitable boards or committees, and manage personal
investments, so long as such activities do not significantly interfere with the performance of Executive’s responsibilities as an employee of the Company in accordance with this Agreement. Executive shall comply with the Company’s policies
and procedures provided, that to the extent such policies and procedures are inconsistent with this Agreement, the provisions of the policies and procedures shall govern. 
 2.3 Certain Proprietary Information. If Executive possesses any proprietary information of another person or entity as a result of prior employment or relationship, Executive shall honor any legal obligation
that Executive has with that person or entity with respect to such proprietary information. 
 2.4 Employment At Will. Subject to the
provisions of Article IV, Executive’s employment with the Company shall be at will, meaning that the employment of Executive under this Agreement commenced on April 5, 2006 and shall continue until terminated by either Company or Executive
for any reason or no reason, whether with or without Cause, in accordance with the notice provisions of Article IV. 
 2.5 Return of
Property. Executive agrees that all property in Executive’s possession belonging to the Company, including without limitation, all documents, reports, manuals, memoranda, computer print-outs, customer lists, credit cards, keys,
identification, access cards, and all other property relating in any way to the business of the Company are the exclusive property of the Company, even if Executive authored, created or assisted in authoring or creating such property. Executive
shall return to the Company all such documents and property immediately upon termination of employment or at such earlier time as the Company may reasonably request. 

 ARTICLE III. 
 COMPENSATION, BENEFITS AND EXPENSES 
 3.1 Base Salary. During the term of Executive’s
employment under this Agreement the Company shall pay Executive a Base Salary at an annual rate of One Hundred Seventy Five Thousand and 00/100 dollars ($175,000) or such annual rate as may from time to time be approved by the Company, such Base
Salary to be paid in substantially equal regular periodic payments biweekly. The Company shall review Executive’s Base Salary annually. If Executive’s Base Salary is modified from time to time during the term of Executive’s employment
under this Agreement, the modified amount shall become the Base Salary for the remainder of Executive’s employment under this Agreement and for as long thereafter as required pursuant to Article IV, subject to any subsequent increases.

 3.2 Bonus Compensation. Executive shall be eligible to participate in the Management Bonus Plan maintained by the Company for its
employees of similar tenure and grade, subject to and on a basis consistent with the terms of such Plan or program and at the discretion of the Board. Executive shall be eligible for a bonus of up to 50% of base salary for the fiscal year
October 1, 2005 through September 30, 2006 based on the Company meeting its stated objectives. 
 3.3 Other Compensation and
Benefits. During the term of Executive’s employment under this Agreement, the Company shall continue in full force and effect all Plans in which Executive becomes entitled to participate after the date of this Agreement (or Plans providing
Executive with al least substantially similar benefits) other than as a result of the normal expiration of any such Plan in accordance with its terms as in effect as of the date of this Agreement or the date as of which Executive first becomes
entitled to participate in such Plan. These plans shall include health, life, dental and long-term disability insurance, Execucare Health Supplement Plan, Long-Term Incentive Plan and the Company’s 401(k) Plan. 
 3.4 Paid Time Off. For the 2006 calendar year and each subsequent calendar year that begins during Executive’s employment under this
Agreement, Executive shall be entitled to Paid Time Off (vacation and sick days), which will accrue at the rate of 200 hours per year, which shall increase to 240 hours per year after four years. Executive will also be entitled to all office
holidays. 
 3.5 Business and Professional Expenses. During Executive’s employment under this Agreement, the Company shall
reimburse Executive for ordinary and necessary business expenses incurred by executive in performing Executive’s duties as an executive officer of the Company, including, without limitation, travel and lodging 

 while away from home on business directly related to the Company, dues and expenses incurred by Executive for
professional membership and participation, and similar items. Expenses must be included as part of the Company’s budget and must be approved by the treasurer or other executive officer of the Company. The cost of these activities shall be
reimbursed to Executive upon proper presentation and substantiation to the Company of the expense. 
 3.6 Financial and Tax Planning
Expenses. Each calendar year, Executive shall be entitled to reimbursement up to $1,500 for expenses related to the cost of personal financial planning and tax preparation. The cost of these activities shall be reimbursed to Executive upon
proper presentation and substantiation to the Company of the expense. 
 3.7 Stock Options. Executive was granted options to purchase
20,000 shares of common stock of the Company on April 5, 2006. Such options will vest as per the Company’s standard vesting schedule and will also be evidenced by a standard stock option agreement between Executive and the Company.

 ARTICLE IV. 
 TERMINATION 
 4.1 Termination. Subject to the respective continuing obligations of the parties pursuant to Article V,
this Article sets forth the terms for termination of Executive’s employment under this Agreement. 
 4.2 Termination by the Company
for Cause. The Company may terminate this Agreement immediately for cause. For purposes of this Agreement, “Cause” means (a) an act or acts of personal dishonesty taken by Executive or any action not approved in this Agreement,
intended to result in substantial personal enrichment of Executive at the expense of the Company; (b) repeated violations by Executive of his obligations under paragraph 2.2 which are demonstrably willful and deliberate on Executive’s part
and which are not remedied within a reasonable period after Executive’s receipt of notice of such violations from the Company; or (c) the willful engaging by Executive in illegal conduct that is materially and demonstrably injurious to the
Company. 
 4.3 Termination in the Event of Death or Disability. Executive’s employment under this Agreement shall terminate in
the event of Executive’s death or Disability that prevents Executive from performing the essential functions of his employment for more than twelve (12) weeks. 

 4.4 Termination by Executive for Good Reason. Executive may terminate his employment under this
Agreement for Good Reason. 
 4.5 Termination by Either Party. Either party may terminate Executive’s employment under this
Agreement by giving written notice to the other. 
 4.6 Notice of Termination; Date of Termination. The provisions of this paragraph
4.6 shall apply in connection with any termination of Executive’s employment under this Agreement pursuant to this Article IV. 
 (a)
For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provisions in this Agreement relied upon and if for Cause, death or Disability, shall set forth in reasonable
detail the facts and circumstances for such termination. Any purported termination by the Company or by Executive pursuant to this Article IV (other than a termination because of death) shall be communicated by written Notice of Termination to the
other party hereto. 
 (b) For purposes of this Agreement, “Date of Termination” shall mean: (1) if Executive’s
employment is terminated due to death, the last day of the month first following the month during which Executive’s death occurs; (2) if Executive’s employment is to be terminated for Disability, thirty (30) calendar days after
Notice of Termination is given; (3) if Executive’s employment is terminated by the Company for Cause or by Executive for any reason, the date specified in the Notice of Termination which in no event shall be a date more than thirty
(30) calendar days after the date of such notice; or (4) if Executive’s employment is terminated for any other reason, the date specified in the Notice of Termination, which in no event shall be a date earlier than thirty
(30) calendar days after the date on which a Notice of Termination is given, unless an earlier date has been expressly agreed to by Executive in writing either in advance of, or after, receiving such Notice of Termination. 
 4.7 Compensation upon Termination, Death or During Disability. 
 (a) During any period that Executive fails to perform Executive’s duties hereunder as a result of incapacity due to physical or mental illness, Executive shall not continue to receive Base Salary, but would be
eligible to utilize any accrued PTO and could be eligible for the long-term disability plan. However, Executive shall continue to receive any other compensation and benefits to which Executive would otherwise be entitled under this Agreement and any
Plan until Executive’s Date of Termination. 
 (b) If Executive’s employment under this Agreement is terminated on account of
death, the Company shall pay to Executive his Base Salary as in effect until the Date of Termination, together with any other unpaid and pro rata amounts to which Executive is entitled as of the Date of Termination pursuant to Article III hereof,
including, without limitation, amounts which Executive is entitled under any Plan in accordance with the terms of such Plan. 

 (c) If Executive’s employment under this Agreement is terminated by the Company for Cause or by
Executive for any reason other than because of Good Reason, the Company shall pay Executive the Base Salary through the Date of Termination and any amounts to which the Executive is entitled under any Plan in accordance with the terms of such Plan.

 (d) If Executive’s employment under this Agreement is terminated by the Company involuntarily for reasons other than Cause or by
Executive for Good Reason, the Company shall provide Executive with the payments and benefits as follows: 
 (1) continue to
pay any amounts due to Executive for Base Salary or Bonus in accordance with paragraphs 3.1 and 3.2 at the annual rate in effect thereunder immediately prior to the Date of Termination (but determined without regard to any purported reduction in
Base Salary which gave rise to such termination of employment, if any) for the period commencing on the Date of Termination and ending the number of months equal to one month for every year of Executive’s service with the Company, for a minimum
of six (6) months and up to a maximum of twelve (12) months, after the Date of Termination; and 
 (2) reimbursement
of the actual COBRA premium for health and dental up to a maximum period of twelve (12) months. 
 (e) If there is a Change in Control
and within one year thereafter Executive terminates his employment for Good Reason, the Company shall pay Executive Base Salary in accordance with paragraph 3.1 at the annual rate in effect thereunder immediately prior to the Date of Termination
(but determined without regard to any purported reduction in Base Salary which gave rise to such termination of employment, if any) for the period commencing on the Date of Termination and ending two (2) years after the Date of Termination. The
Company shall also provide reimbursement of the actual COBRA premium for health and dental up to a maximum period of twelve months. 
 ARTICLE V. 
 CONFIDENTIAL INFORMATION 
 5.1 Prohibitions Against Use. Executive will not during or subsequent to the termination of Executive’s employment under this Agreement use or disclose, other than in connection with Executive’s
employment with the Company, any Confidential Information to any person not employed by the Company or not authorized by the Company to receive such Confidential Information, without the prior written consent of the Company. Executive will use
reasonable and prudent care to safeguard and protect and prevent the unauthorized use and disclosure of Confidential Information. The obligations contained in this paragraph will survive for as long as the Company in its sole judgment considers the
information to be Confidential Information. 

 ARTICLE VI. 
 GENERAL PROVISIONS 
 6.1 Successor and Assigns. 
 This Agreement shall be binding upon and inure to the benefit of any Successor of the Company, and any such Successor shall absolutely and unconditionally
assume all of the Company’s obligations hereunder. Upon Executive’s written request, the Company will seek to have any Successor, by agreement in form and substance satisfactory to Executive, assent to the fulfillment by the Company of
their obligations under this Agreement. 
 6.2 Disputes. Any dispute, controversy or claim for damages arising under or in connection
with this Agreement shall, in Executive’s sole discretion, be settled exclusively by such judicial remedies as Executive may seek to pursue or by arbitration in Minnesota by a panel of three (3) arbitrators in accordance with the rules of
the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The parties shall each bear their own costs and expenses, including attorney’s fees, arising in
connection with any arbitration proceeding pursuant to this paragraph 6.2. The Company shall be entitled to seek an injunction or restraining order in a court of competent jurisdiction to enforce the provisions of Article V. 
 6.3 Notices. All notices, request and demands given to or made pursuant hereto shall, except as otherwise specified herein, be in writing and be
personally delivered or mailed postage prepaid, registered or certified U.S. mail, to any party as its address set forth on the last page of this Agreement. Either party may, by notice hereunder, designate a changed address. Any notice hereunder
shall be deemed effectively given and received: (a) if personally delivered, upon delivery; or (b) if mailed, on the registered date or the date stamped on the certified mail receipt. 
 6.4 Withholding. To the extent required by any applicable law, including, without limitation, any federal or state income tax or excise tax law or
laws, the Federal Insurance Contributions Act, the Federal Unemployment Tax Act or any comparable federal, state or local laws, the Company retains the right to withhold such portion of any amount or amounts payable to Executive under this Agreement
as the Company deems necessary. 

 6.5 Captions. The various headings or captions in this Agreement are for convenience only and
shall not affect the meaning or interpretation of this Agreement. 
 6.6 Governing Law. The validity, interpretation, construction,
performance, enforcement and remedies of or relating to this Agreement, and the rights and obligations of the parties hereunder, shall be governed by the substantive laws of the state of Minnesota (without regard to the conflict of laws rules or
statutes of any jurisdiction). 
 6.7 Construction. Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 6.8 Waivers. No failure on the part of
either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise or any right or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right or remedy granted hereby or by any related document or by law. 
 6.9 Modification. This Agreement may not
be modified or amended except by written instrument signed by the parties hereto. 
 6.10 Entire Agreement. This Agreement constitutes
the entire agreement and understanding between the parties hereto in reference to all the matters herein agreed upon. This Agreement replaces in full all prior agreements or understandings of the parties hereto, with the exception of the
Non-Competition Agreement entered into between the Company and Executive dated April 5, 2006, which shall continue in full force and effect. Any and all other such prior agreements or understandings are hereby rescinded by mutual agreement.

 6.11 Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed to be an
original but all of which together will constitute one (1) and the same instrument. 
 6.12 Survival. The parties expressly
acknowledge and agree that the provisions of this Agreement which by their express or implied terms extend beyond the termination of Executive’s employment hereunder shall continue in full force and effect notwithstanding Executive’s
termination of employment hereunder or the termination of this Agreement, respectively. 

 6.13 Indemnification. The Company indemnifies, holds harmless, and will defend the Executive
against claims against Executive arising out of Executive’s performance of the duties of the Executive’s employment by the Company, to the full extent permitted by law, but not with respect to claims successfully prosecuted against
the Executive for fraudulent, grossly negligent, or criminal acts. 
 IN WITNESS WHEREOF, the parties hereto have caused this Executive Employment
Agreement to be duly executed and delivered as of the day and year first above written. 
  

									
	 EXECUTIVE:
	 		 		 	DELPHAX TECHNOLOGIES INC.:
					
	 /s/ Gregory S. Furness
	 		 		 	By:	 	 /s/ Dieter P. Schilling

	Gregory S. Furness	 		 		 		 	Dieter Schilling
		 		 		 	Title:	 	Chief Executive Officer
				
	Address:	 		 		 	Address:
				
	14015 Drake Street NW	 		 		 	Delphax Technologies Inc.
	Andover, MN 55304	 		 		 	6100 West 110th Street
		 		 		 	Bloomington, MN 55438Executive Employment Agreement

 Exhibit 10.4 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AGREEMENT, dated the 16th day of June, is by and between Delphax Technologies, Inc. (“Company”), a Minnesota corporation, and George P. Carranza
(“Executive”), a Minnesota resident. 
 RECITALS 
 A. The Company desires to employ Executive in the capacity of Vice President of Sales & Marketing. 
 B. Executive desires to be employed by the Company, with duties and responsibilities commensurate with Executive’s education and background, and
compensation and other benefits at levels that reflect Executive’s contributions to the Company. 
 In consideration of the
parties’ mutual covenants and undertakings contained in this Agreement, the Company and Executive agree as follows: 
 ARTICLE I.

 DEFINITIONS 
 Capitalized terms used in the Agreement shall have their defined meaning throughout the Agreement. The following terms shall have the meanings set forth below, unless the context clearly requires otherwise. 
 1.1 “Agreement” means this Executive Employment Agreement, as from time to time amended. 
 1.2 “Base Salary” means the total annual cash compensation payable on a regular periodic basis, without regard to voluntary or mandatory
deferrals. 
 1.3 “Beneficiary” means the person or persons designated in writing to the Company by Executive to receive
benefits payable after Executive’s death. In the absence of such designation or in the event that all of the persons so designated predecease Executive, Beneficiary means the executor, administrator or personal representative of
Executive’s estate. 
 1.4 “Board” means the Board of Directors of the Company. 

 1.7 “Cause” has the meaning set forth at paragraph 4.2 of this Agreement.

 1.8 “Change in Control” means: 
  

	 	(a)	the Company consummates a merger, consolidation, share exchange, division or other reorganization of the Company with any corporation or entity (other than an entity owned at least
80% by the Company) in which the Company is not the surviving entity or 50% of the Company’s then existing Board is replaced; or 

  

	 	(b)	the shareholders of the Company approve an agreement for the sale or disposition (in one transaction or a series of transactions) of assets of the Company, the total consideration
of which is greater than 51% of the total fair market value of the Company; or 

  

	 	(c)	the shareholders of the Company approve an agreement for the sale or disposition (in one transaction or a series of transactions) of stock in the Company, the total sale or
disposition of which is greater than 51% of the total common stock of the Company; or 

  

	 	(d)	the Company adopts a plan of complete liquidation or winding-up of the Company. 

 A “Change in Control” shall not include any public offering by the Company or additional equity capital obtained by the Company pursuant to the approval of a majority of the Board. 
 1.7. “Confidential Information” means information that is proprietary to the Company or proprietary to others and entrusted to the
Company, whether or not trade secrets. Confidential Information includes, but is not limited to, information relating to business plans and to business as conducted or anticipated to be conducted, and to past or current or anticipated products.
Confidential Information also includes, without limitation, information concerning research, development, purchasing, accounting, marketing, selling and services. All information that Executive has a reasonable basis to consider confidential is
Confidential Information, whether or not expressly designated as such, whether or not originated by Executive and without regard to the manner in which Executive obtains access to this and any other proprietary information. 
 1.8 “Date of Termination” has the meaning set forth at paragraph 4.6(b) of this Agreement. 

 1.9 “Disability” means the unwillingness or inability of Executive to perform
Executive’s duties under this Agreement because of incapacity due to physical or mental illness, bodily injury or disease. 
 1.9
“Executive” means George P. Carranza. 
 1.10 “Good Reason to Terminate Employment” means
termination of employment based on any one or more of the following: 
 (a) An adverse change in Executive’s status or position as a
result of a substantial diminution in Executive’s duties, responsibilities or authority as of the date of this Agreement; 
 (b) A
reduction by the Company in Executive’s Base Salary as in effect as of the date of commencement of this Agreement or as the same may be increased from time to time, or a change in the eligibility requirements or performance criteria under any
Plan under which Executive is covered immediately prior to the date of this Agreement, which adversely affects Executive’s participation or materially reduces Executive’s benefits under any Plan; 
 (c) The Company’s requiring Executive to be based anywhere other than the Minneapolis-St. Paul metropolitan area, except for required travel on the
Company’s business; or 
 (d) The failure by the Company to obtain from any Successor its assent to this Agreement as contemplated by
paragraph 6.1. 
 1.12 “Plan” means any plan, program, policy or arrangement sponsored, maintained or contributed to by the
Company to which the Company is a party or under which employees of the Company are covered, including, without limitation, any employee benefit plan, such as thrift, pension, profit sharing, deferred compensation, medical, dental, disability,
accident, life insurance, fringe benefit, vacation, sick or parental leave, severance plan or policy or any other agreement, plan, program, policy or arrangement intended to benefit employees or executive officers of the Company. 
 1.13 “Successor” means any corporation, individual, group, association, partnership, firm, venture, or other entity or person that,
subsequent to the date thereof, succeeds to the actual or practical ability to control, all or substantially all of the Company’s business and/or assets, directly or indirectly, by merger, consolidation, purchase, liquidation, redemption,
assignment, similar corporation transaction, operation of law or otherwise. 

 ARTICLE II 
 EMPLOYMENT, DUTIES AND TERM 
 2.1 Employment. Upon the terms and conditions set forth in this
Agreement, the Company hereby employs Executive, and Executive accepts such employment. Except as expressly provided herein, termination of this Agreement by either party shall also terminate Executive’s employment by the Company. 

2.2 Duties. During the term of this Agreement, and excluding any periods of vacation, sick, disability or other leave to which Executive is
entitled, Executive agrees to devote reasonable attention and time to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to Executive hereunder, to use Executive’s reasonable best
efforts to perform faithfully and efficiently such responsibilities. During the term of this Agreement, it shall not be a violation of this Agreement for Executive to serve on corporate, civic or charitable boards or committees, and manage personal
investments, so long as such activities do not significantly interfere with the performance of Executive’s responsibilities as an employee of the Company in accordance with this Agreement. Executive shall comply with the Company’s policies
and procedures provided, that to the extent such policies and procedures are inconsistent with this Agreement, the provisions of the policies and procedures shall govern. 
 2.3 Certain Proprietary Information. If Executive possesses any proprietary information of another person or entity as a result of prior employment or relationship, Executive shall honor any legal obligation
that Executive has with that person or entity with respect to such proprietary information. 
 2.4 Employment At Will. Subject to the
provisions of Article IV, Executive’s employment with the Company shall be at will, meaning that the employment of Executive under this Agreement shall commence the date of execution hereto and continue until terminated by either Company or
Executive for any reason or no reason, whether with or without Cause, in accordance with the notice provisions of Article IV. 
 2.5
Return of Property. Executive agrees that all property in Executive’s possession belonging to the Company, including without limitation, all documents, reports, manuals, memoranda, computer print-outs, customer lists, credit cards, keys,
identification, access cards, and all other property relating in any way to the business of the Company are the exclusive property of the Company, even if Executive authored, created or assisted in authoring or creating such property. Executive
shall return to the Company all such documents and property immediately upon termination of employment or at such earlier time as the Company may reasonably request. 

 ARTICLE III. 
 COMPENSATION, BENEFITS AND EXPENSES 
 3.1 Base Salary. During the term of Executive’s
employment under this Agreement the Company shall pay Executive a Base Salary at an annual rate of One Hundred Ninety Thousand and 00/100 dollars ($190,000) or such annual rate as may from time to time be approved by the Company, such Base Salary to
be paid in substantially equal regular periodic payments biweekly. The Company shall review Executive’s Base Salary annually. If Executive’s Base Salary is modified from time to time during the term of Executive’s employment under
this Agreement, the modified amount shall become the Base Salary for the remainder of Executive’s employment under this Agreement and for as long thereafter as required pursuant to Article IV, subject to any subsequent increases. 
 3.2 Bonus Compensation. Executive shall be eligible to participate in the Management Bonus Plan maintained by the Company for its employees of
similar tenure and grade, subject to and on a basis consistent with the terms of such Plan or program and at the discretion of the Board. 
 3.3 Other Compensation and Benefits. During the term of Executive’s employment under this Agreement, the Company shall continue in full force and effect all Plans in which Executive becomes entitled to participate after the date
of this Agreement (or Plans providing Executive with al least substantially similar benefits) other than as a result of the normal expiration of any such Plan in accordance with its terms as in effect as of the date of this Agreement or the date as
of which Executive first becomes entitled to participate in such Plan. These plans shall include health, life, dental and long-term disability insurance, Execucare Health Supplement Plan, Long-Term Incentive Plan and the Company’s 401(k) Plan.

 3.4 Paid Time Off. For the 2006 calendar year and each subsequent calendar year that begins during Executive’s employment
under this Agreement, Executive shall be entitled to Paid Time Off (vacation and sick days), which will accrue at the rate of 200 hours per year, which shall increase to 240 hours per year after four years. Executive will also be entitled to all
office holidays. 
 3.5 Business and Professional Expenses. During Executive’s employment under this Agreement, the Company shall
reimburse Executive for ordinary and necessary business expenses incurred by executive in performing Executive’s duties as an executive officer of the Company, including, without limitation, travel and lodging while away from home on business
directly related to the Company, dues and expenses incurred by Executive for professional membership and participation, and similar items. Expenses must be included as part of the Company’s budget and must be approved by the treasurer or other
executive officer of the Company. The cost of these activities shall be reimbursed to Executive upon proper presentation and substantiation to the Company of the expense. 

 3.6 Financial and Tax Planning Expenses. Each calendar year, Executive shall be entitled to
reimbursement up to $1,500 for expenses related to the cost of personal financial planning and tax preparation. The cost of these activities shall be reimbursed to Executive upon proper presentation and substantiation to the Company of the expense.

 ARTICLE IV. 
 TERMINATION 
 4.1 Termination. Subject to the respective continuing obligations of the parties pursuant to Article V,
this Article sets forth the terms for termination of Executive’s employment under this Agreement. 
 4.2 Termination by the Company
for Cause. The Company may terminate Executive’s employment under this Agreement immediately for Cause. For purposes of this Agreement, “Cause” means: 
  

	 	(a)	an act or acts of personal dishonesty taken by Executive or any action not approved in this Agreement (including, but not limited to, Executive’s appropriation or attempted
appropriation of a material business opportunity of Company), intended to result in substantial personal enrichment or profit of Executive at the expense of the Company; 

  

	 	(b)	the gross neglect or willful failure or refusal of Executive to perform Executive’s duties and obligations under paragraph 2.2 (other than as a result of total or partial
incapacity due to physical or mental illness), including any (i) breach of Executive’s fiduciary duties to the Company; (ii) financial misstatements; (iii) regulatory or accounting violations; and/or (iv) breach of the
Company’s Code of Conduct; 

  

	 	(c)	the engaging by Executive in misconduct that is materially and demonstrably injurious to the Company, monetarily or otherwise; 

  

	 	(d)	perpetration of an intentional and knowing fraud against or affecting the Company or any customer, supplier, client, agent, or executive thereof; 

  

	 	(e)	any willful or intentional act that is demonstrably and materially injurious to the reputation, business, financial condition or business relationships of Company, or to
Executive’s reputation or business relationships; 

	 	(f)	conviction (including conviction on a nolo contendre plea) of a felony or any crime involving fraud, dishonesty or moral turpitude; or 

  

	 	(g)	the breach of any covenant set forth in Article V below. 

 4.3 Termination in the Event of Death or Disability. Executive’s employment under this Agreement shall terminate in the event of Executive’s death or Disability that prevents Executive from performing the essential
functions of his employment for more than twelve (12) weeks. 
 4.4 Termination by Executive for Good Reason. Executive may
terminate his employment under this Agreement for Good Reason. 
 4.5 Termination by Either Party. Either party may terminate
Executive’s employment under this Agreement by giving written notice to the other. 
 4.6 Notice of Termination; Date of
Termination. The provisions of this paragraph 4.6 shall apply in connection with any termination of Executive’s employment under this Agreement pursuant to this Article IV. 
 (a) For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provisions in
this Agreement relied upon and if for Cause, death or Disability, shall set forth in reasonable detail the facts and circumstances for such termination. Any purported termination by the Company or by Executive pursuant to this Article IV (other than
a termination because of death) shall be communicated by written Notice of Termination to the other party hereto. 
 (b) For purposes of this
Agreement, “Date of Termination” shall mean: (1) if Executive’s employment is terminated due to death, the last day of the month first following the month during which Executive’s death occurs; (2) if Executive’s
employment is to be terminated for Disability, thirty (30) calendar days after Notice of Termination is given; (3) if Executive’s employment is terminated by the Company for Cause or by Executive for any reason, the date specified in
the Notice of Termination which in no event shall be a date more than thirty (30) calendar days after the date of such notice; or (4) if Executive’s employment is terminated for any other reason, the date specified in the Notice of
Termination, which in no event shall be a date earlier than thirty (30) calendar days after the date on which a Notice of Termination is given, unless an earlier date has been expressly agreed to by Executive in writing either in advance of, or
after, receiving such Notice of Termination. 

 4.7 Compensation upon Termination, Death or During Disability. 
 (a) During any period that Executive fails to perform Executive’s duties hereunder as a result of incapacity due to physical or mental illness,
Executive shall not continue to receive Base Salary, but would be eligible to utilize any accrued PTO and could be eligible for the long-term disability plan. However, Executive shall continue to receive any other compensation and benefits to which
Executive would otherwise be entitled under this Agreement and any Plan until Executive’s Date of Termination. 
 (b) If
Executive’s employment under this Agreement is terminated on account of death, the Company shall pay to Executive his Base Salary as in effect until the Date of Termination, together with any other unpaid and pro rata amounts to which Executive
is entitled as of the Date of Termination pursuant to Article III hereof, including, without limitation, amounts which Executive is entitled under any Plan in accordance with the terms of such Plan. 
 (c) If Executive’s employment under this Agreement is terminated by the Company for Cause or by Executive for any reason other than because of Good
Reason, the Company shall pay Executive the Base Salary through the Date of Termination and any amounts to which the Executive is entitled under any Plan in accordance with the terms of such Plan. 
 (d) If Executive’s employment under this Agreement is terminated by the Company involuntarily for reasons other than Cause, or by Executive for
reasons other than Good Reason, the Company shall provide Executive with the payments and benefits as follows: 
 (1) continue
to pay any amounts due to Executive for Base Salary in accordance with paragraph 3.1 at the annual rate in effect thereunder immediately prior to the Date of Termination (but determined without regard to any purported reduction in Base Salary which
gave rise to such termination of employment, if any) for the period commencing on the Date of Termination and ending six (6) months after the Date of Termination (if Executive had been employed by the Company less than twenty four
(24) months) or, if Executive has been employed by the Company twenty four (24) months or more, then ending twelve (12) months after the Date of Termination. 
 (2) reimbursement of the actual COBRA premium for health and dental up to a maximum period of twelve months. 
 (e) If there is a Change in Control, and within one year thereafter Executive is terminated by the Company involuntarily for reasons other than Cause or
Executive terminates his employment hereunder because of Good Reason, the Company shall pay Executive Base Salary in accordance with paragraphs 3.1 at the annual rate in effect thereunder immediately prior to the Date of Termination (but determined
without 

 regard to any purported reduction in Base Salary which gave rise to such termination of employment, if any) for the
period commencing on the Date of Termination and ending one (1) year after the Date of Termination. The Company shall also provide reimbursement of the actual COBRA premium for health and dental up to a maximum period of twelve months.

 (f) If Executive is entitled to receive any severance payments under section 4.7(d) or 4.7(e), he shall only receive such payments if he
properly executes a standard waiver and release of claims agreement beforehand. 
 (g) If and to the extent that any payment to be paid to
Executive under this paragraph 4.7 is governed by Code Section 409A and if Executive is a specified employee under Code Section 409A, any payments required to be paid to Executive will begin no later than six (6) months from the Date
of Termination of employment, or the first date on which such payment (or any part thereof) would not be subject to the limitation or deductibility under Code Section 162(m). In the event that such payment is so delayed, the amount of the first
payment shall be increased for interest earned on the delayed payment based upon interest for the period of delay, compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as of the date the payment should
otherwise have been provided. Further, in the event that such payment is so delayed, the first payment (representing the first six months (or less) of accrued payment due Executive) will be paid to Executive in a lump sum and any remaining payments
due thereafter will be paid to Executive in substantially equal regular periodic payments biweekly. 
 ARTICLE V. 
 CONFIDENTIAL INFORMATION 
 5.1
Prohibitions Against Use. Executive will not during or subsequent to the termination of Executive’s employment under this Agreement use or disclose, other than in connection with Executive’s employment with the Company, any
Confidential Information to any person not employed by the Company or not authorized by the Company to receive such Confidential Information, without the prior written consent of the Company. Executive will use reasonable and prudent care to
safeguard and protect and prevent the unauthorized use and disclosure of Confidential Information. The obligations contained in this paragraph will survive for as long as the Company in its sole judgment considers the information to be Confidential
Information. 

 ARTICLE VI. 
 GENERAL PROVISIONS 
 6.1 Successor and Assigns. 
 This Agreement shall be binding upon and inure to the benefit of any Successor of the Company, and any such Successor shall absolutely and unconditionally
assume all of the Company’s obligations hereunder. Upon Executive’s written request, the Company will seek to have any Successor, by agreement in form and substance satisfactory to Executive, assent to the fulfillment by the Company of
their obligations under this Agreement. 
 6.2 Disputes. Any dispute, controversy or claim for damages arising under or in connection
with this Agreement shall, in Executive’s sole discretion, be settled exclusively by such judicial remedies as Executive may seek to pursue or by arbitration in Minnesota by a panel of three (3) arbitrators in accordance with the rules of
the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The parties shall each bear their own costs and expenses, including attorney’s fees, arising in
connection with any arbitration proceeding pursuant to this paragraph 6.2. The Company shall be entitled to seek an injunction or restraining order in a court of competent jurisdiction to enforce the provisions of Article V. 
 6.3 Notices. All notices, request and demands given to or made pursuant hereto shall, except as otherwise specified herein, be in writing and be
personally delivered or mailed postage prepaid, registered or certified U.S. mail, to any party as its address set forth on the last page of this Agreement. Either party may, by notice hereunder, designate a changed address. Any notice hereunder
shall be deemed effectively given and received: (a) if personally delivered, upon delivery; or (b) if mailed, on the registered date or the date stamped on the certified mail receipt. 
 6.4 Withholding. To the extent required by any applicable law, including, without limitation, any federal or state income tax or excise tax law or
laws, the Federal Insurance Contributions Act, the Federal Unemployment Tax Act or any comparable federal, state or local laws, the Company retains the right to withhold such portion of any amount or amounts payable to Executive under this Agreement
as the Company deems necessary. 
 6.5 Captions. The various headings or captions in this Agreement are for convenience only and shall
not affect the meaning or interpretation of this Agreement. 
 6.6 Governing Law. The validity, interpretation, construction,
performance, enforcement and remedies of or relating to this Agreement, and the rights and 

 obligations of the parties hereunder, shall be governed by the substantive laws of the state of Minnesota (without regard
to the conflict of laws rules or statutes of any jurisdiction). 
 6.7 Construction. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of
such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 6.8
Waivers. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise or any right or remedy hereunder preclude any
other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law. 
 6.9
Modification. This Agreement may not be modified or amended except by written instrument signed by the parties hereto. 
 6.10 Entire
Agreement. This Agreement constitutes the entire agreement and understanding between the parties hereto in reference to all the matters herein agreed upon. Executive is also entering into an Agreement Not to Compete with Executive that is part
of the consideration for the Company entering into this Agreement, and that Agreement Not to Compete shall remain in force in accordance with its terms. 
 6.11 Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one (1) and the same
instrument. 
 6.12 Survival. The parties expressly acknowledge and agree that the provisions of this Agreement which by their express
or implied terms extend beyond the termination of Executive’s employment hereunder shall continue in full force and effect notwithstanding Executive’s termination of employment hereunder or the termination of this Agreement, respectively.

 6.13 Indemnification. The Company indemnifies, holds harmless, and will defend the Executive against clams against Executive
arising out of Executive’s performance of the duties of the Executive’s employment by the Company, to the full extent permitted by law, but not with respect to claims successfully prosecuted against the Executive for fraudulent,
grossly negligent, or criminal acts. 

 IN WITNESS WHEREOF, the parties hereto have caused this Executive Employment Agreement to be duly executed and
delivered as of the day and year first above written. 
  

					
	 EXECUTIVE:
	    	DELPHAX TECHNOLOGIES INC.:
			
	 /s/ George P. Carranza
	    	 By:
	 	 /s/ Dieter P. Schilling

	 George P. Carranza
	    		 	 Dieter Schilling

		    	 Title:
	 	 Chief Executive Officer

			
	 Address:
	    		 	 Address:

			
	 1721 Brook Meadow Ct.
	    		 	 Delphax Technologies Inc.

	 Grapevine, TX 76051
	    		 	 6100 West 110th Street

		    		 	 Bloomington, MN 55438

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