Document:

Exhibit
10.5

 

VIASYS HEALTHCARE INC.

EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT is made and entered into as of November 29, 2004 by and among VIASYS
Healthcare Inc., a Delaware corporation (together with its successors and
assigns permitted under this Agreement, the “Company”), and Mahboob Raja  (the “Executive”).

 

W I T N E S S E T H :

 

WHEREAS,
the Company and the Executive desire to enter into an employment agreement as
set forth herein to embody the terms and provisions of the Executive’s
employment (the “Agreement”); and

 

WHEREAS,
the Agreement will replace and supercede all prior employment agreements
between the Executive and the Company or its subsidiaries, including, without
limitation, the Employment Agreement between the Company and the Executive
dated July 1, 2003 (the “Prior Employment Agreement”);

 

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

 

1.                                       DEFINITIONS.

 

(a)                                  “Affiliate”
means a  person or other entity that
directly or indirectly controls, is controlled by, or is under common control
with the person or other entity specified.

 

(b)                                 “Base
Salary” means the salary provided for in Section 4
or any increased salary granted to the Executive pursuant thereto.

 

(c)                                  “Board”
means the Board of Directors of the Company, or the Compensation Committee or
other applicable committees of the Board of Directors.

 

(d)                                 “Bonus Plan” means the Company’s management
incentive plan or such other annual bonus plan in existence at the applicable
time.

 

(e)                                  “Cause”
means the occurrence of any one or more of the following events:

 

(i)                                     the
Executive’s repeated failure to comply with the reasonable directives of the
relevant senior officers;

 

(ii)                                  the
Executive’s commission of a felony which is materially and demonstrably
injurious to the Company; or

 

(iii)                               the
Executive’s continued gross neglect of the Executive’s duties with the Company
(other than any such occurrence resulting from incapacity due to physical or
mental illness).

 

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(f)                                    “Change
in Control” means an event or occurrence set forth in any one or more of
subsections (i) through (iv) below (including, without limitation, an event or
occurrence that constitutes a Change in Control under one of such subsections
but is specifically exempted from another such subsection):

 

(i)                                     the
acquisition by an individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company
if, after such acquisition, such Person beneficially owns (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) 40% or more of either (i) the
then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”), or (ii) the combined voting power of the then-outstanding
securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this subsection (i), the following acquisitions shall not
constitute a Change in Control:

 

(A)                              any
acquisition by the Company, or

 

(B)                                any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company;

 

(ii)                                  the
Continuing Directors (as defined below) do not constitute a majority of the
Board (or, if applicable, the Board of Directors of a successor corporation to
the Company), where the term “Continuing Director” means at any date a member
of the Board (A) who was a member of the Board on the date of the execution of
this Agreement or (B) who was nominated or elected subsequent to such date by
at least a majority of the directors who were Continuing Directors at the time
of such nomination or election or whose election to the Board was recommended
or endorsed by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election; provided, however, that
there shall be excluded from this clause (B) any individual whose initial
assumption of office occurred 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;

 

(iii)                               the
consummation of a merger, consolidation, reorganization, recapitalization or
statutory share exchange involving the Company or a sale or other disposition
of all or substantially all of the assets of the Company in one or a series of
transactions (a “Business Combination”), unless, immediately following such
Business Combination the beneficial owners of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”); or

 

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(iv)                              approval
by the stockholders of the Company of a complete liquidation or dissolution of
the Company.

 

(g)                                 “Code”
means the Internal Revenue Code of 1986, as amended.

 

(h)                                 “Disability”
or “disabled” means a disability which results in the Executive’s entitlement
to long-term disability benefits under the Company’s applicable long-term
disability plan.

 

(i)                                     “Effective
Date” means November 15, 2004.

 

(j)                                     “Equity
Grant” means any compensatory grant of Stock, options with respect to Stock,
restricted Stock, Stock appreciation rights or any other compensatory grant
(whether or not such grant is payable in stock) the value of which is
determined with reference to Stock valuation.

 

(k)                                  “Notice
of Termination” means a written notice from one party to the other party hereto
given in accordance with Section 24, terminating the Executive’s employment
hereunder.  Any Notice of Termination
shall (i) indicate the specific termination provision hereunder relied on by
the party giving such notice and (ii) to the extent applicable, set forth in
reasonable detail the facts and circumstances providing a basis for termination
of the Executive’s employment under the provision so indicated.  The failure by the Company to set forth any
fact or circumstance that contributes to a showing of Cause shall not waive any
right of the Company hereunder or preclude the Company from asserting any such
fact or circumstance in enforcing its rights hereunder.

 

(l)                                     “Pro-Rated
Annual Bonus” means an annual cash incentive bonus award for the year in which
the termination occurs, pro-rated through the Termination Date, determined in
accordance with the Bonus Plan and the provisions of Section 5, which award, if
and to the extent so determined to be owed, shall be payable when incentive
awards are normally paid to comparable executives.

 

(m)                               “Stock”
means the common stock, $0.01 par value per share, of the Company.

 

(n)                                 “Termination
Date” means, with respect to any termination of the Executive’s employment
hereunder, the effective date of such termination pursuant to Section 9.

 

2.                                       TERM
OF EMPLOYMENT.

 

This
Agreement, and all rights and obligations of the parties hereunder, shall take
effect upon the Effective Date and shall continue until the date that is two
years from the Effective Date (the “Initial Employment Term”).  In addition, the term of this Agreement shall
automatically renew for periods of two years (each an “Extension Term”) unless
either party gives written notice to the other party, at least ninety (90) days
prior to the end of the Initial Employment Term or at least ninety (90) days
prior to the end of the relevant Extension Term, that the Agreement shall not
be further extended.  The period
commencing on the Effective Date and ending on the date on which the term of
the Executive’s employment under the Agreement shall terminate is hereinafter
referred to as the “Employment Term.”

 

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3.                                       POSITION,
DUTIES AND RESPONSIBILITIES.

 

(a)                                  Commencing
on the Effective Date, the Executive is employed as Group President, VIASYS
International of the Company, and the Executive has been assigned and shall be
assigned such duties and responsibilities as are reasonably consistent with
such position(s), or such other position, duties and responsibilities as the
CEO or the Executive’s direct supervisor from time to time deems appropriate.

 

(b)                                 During
the Employment Term, the Executive shall devote the Executive’s entire business
time, attention and energies to the business and interest of the Company in
performing the Executive’s duties and responsibilities under this Agreement,
and to that end but without limitation of the foregoing, the Executive shall
not serve on the board of directors of other corporations or entities without
the prior approval of the Board or the Chief Executive Officer.

 

(c)                                  Notwithstanding
anything contained in Section 3(b) to the contrary,
nothing herein shall preclude the Executive from (i) serving on the boards of
directors of a reasonable number of trade associations and/or charitable
organizations, (ii) engaging in charitable activities and community affairs,
and (iii) managing the Executive’s personal investments and affairs, provided
that such activities do not materially interfere with the proper performance of
the Executive’s duties and responsibilities as set forth in this Section 3.

 

4.                                       BASE
SALARY.

 

The
Executive shall be paid an annualized base salary, payable in accordance with
the regular payroll practices of the Company, of £140,154.56, which amount may
be increased from time to time in the discretion of the Board.

 

5.                                       ANNUAL
CASH INCENTIVE AWARD.

 

During the Employment Term, the Executive shall
participate in (a) the Bonus Plan with a target bonus of 50% of the Base
Salary, or such other amount as may be determined in its discretion by the
Board or the appropriate committee or individual to which authority for these
matters has been assigned, and (b) any other incentive programs established by
the Company for its senior level executives generally.

 

6.                                       EMPLOYEE
BENEFIT PROGRAMS.

 

During
the Employment Term, the Executive shall be entitled to participate in all
employee pension and welfare benefit plans and programs made available to the
Company’s senior level executives.

 

7.                                       PERQUISITES.

 

During
the Employment Term, the Executive shall be entitled to participate in all of
the Company’s executive perquisites in accordance with the terms and conditions
of such arrangements as are in effect from time to time for the Company’s
senior-level executives.

 

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8.                                       REIMBURSEMENT
OF BUSINESS AND OTHER EXPENSES.

 

The
Executive is authorized to incur reasonable expenses in carrying out the duties
and responsibilities under this Agreement, and the Company shall promptly
reimburse the Executive for such expenses, subject to documentation in
accordance with the Company’s policies.

 

9.                                       TERMINATION
OF EMPLOYMENT.

 

The
Executive’s employment hereunder shall terminate effective immediately upon the
earlier to occur of the following events:

 

(a)                                  death
of the Executive;

 

(b)                                 receipt
by either party of a Notice of Termination for Disability from the other party,
but in any event not until the Executive is determined to be disabled in
accordance with Section 1(h);

 

(c)                                  the
day the Executive receives a Notice of Termination for Cause from the Company;

 

(d)                                 the
30th day following receipt by the Executive of a Notice of Termination without
Cause from the Company;

 

(e)                                  the
30th day following receipt by the Company of a Notice of Termination of
employment from the Executive (other than a Notice of Termination for
non-renewal of the Agreement);

 

(f)                                    the
90th day following receipt by the Company of a Notice of Termination for
non-renewal of the Agreement from the Executive pursuant to Section 2; and

 

(g)                                 the
last day of the Employment Term, in the event of receipt by the Executive of a
notice of non-renewal of the Agreement from the Company pursuant to Section 2.

 

10.                                 RIGHTS
AND REMEDIES UPON TERMINATION OF EMPLOYMENT.

 

(a)                                  TERMINATION
DUE TO DEATH.  In the event that the
Executive’s employment is terminated due to the Executive’s death, the
Executive’s estate or beneficiaries, as the case may be, shall be entitled to
the following benefits:

 

(i)                                     The
Executive’s then current Base Salary pro-rated through the Termination Date,
which shall be payable in a lump sum within thirty (30) days of the Termination
Date;

 

(ii)                                  The
Pro-Rated Annual Bonus, if and to the extent payable; and

 

(iii)                               Each
Equity Grant held by the Executive, whether or not issued under this Employment
Agreement, that has not vested prior to that date shall immediately vest (and
all relevant vesting restrictions shall lapse) and to the extent subject to an
exercise period, shall

 

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remain exercisable until one year following the Termination Date (but
in no event beyond the end of each such Equity Grant’s otherwise applicable
exercise period).

 

(b)                                 TERMINATION
DUE TO DISABILITY.  In the event that the
Executive’s employment is terminated by either party due to the Executive’s
Disability, the Executive shall be entitled to the following benefits:

 

(i)                                     Disability
benefits in accordance with the long-term disability (“LTD”) program then in
effect for comparable executives of the Company;

 

(ii)                                  The
Executive’s then current Base Salary pro-rated through the end of the LTD
elimination period, which shall be payable in a lump sum within thirty (30)
days of the Termination Date;

 

(iii)                               The
Pro-Rated Annual Bonus, if and to the extent payable; and

 

(iv)                              Each
Equity Grant held by the Executive, whether or not issued under this Employment
Agreement, that has not vested prior to that date shall immediately vest (and
all relevant vesting restrictions shall lapse) and to the extent subject to an
exercise period, shall remain exercisable until one year following the
Termination Date (but in no event beyond the end of each such Equity Grant’s
otherwise applicable exercise period).

 

(c)                                  TERMINATION
BY THE COMPANY FOR CAUSE.  In the event
that the Company terminates the Executive’s employment for Cause:

 

(i)                                     The
Executive shall be entitled to receive the Executive’s current Base Salary
pro-rated through the Termination Date, which shall be payable in a lump sum
within thirty (30) days of the Termination Date;

 

(ii)                                  The
Executive shall not be entitled to any benefits, severance or other
compensation; and

 

(iii)                               Each
Equity Grant held by the Executive, whether or not issued under this Employment
Agreement, (A) that has not vested prior to that date shall immediately cease
to vest and shall be forfeited to the Company and cancelled, and (B) that has
vested prior to or on the Termination Date, to the extent subject to an
exercise period, shall remain exercisable for ninety (90) days following the
Termination Date (but in no event beyond the end of each such Equity Grant’s
otherwise applicable exercise period).

 

(d)                                 TERMINATION
BY THE EXECUTIVE.  In the event of a
termination of employment by the Executive on the Executive’s own initiative,
other than due to (A) death, (B) Disability, (C) the
expiration of the then current Employment Term, or (D) a notice from one party
to the other of its intent not to extend the Employment Term:

 

(i)                                     The
Executive shall be entitled to receive the Executive’s current Base Salary
pro-rated through the Termination Date, which shall be payable in a lump sum
within thirty (30) days of the Termination Date;

 

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(ii)                                  The
Executive shall not be entitled to any benefits, severance or other
compensation; and

 

(iii)                               Each
Equity Grant held by the Executive, whether or not issued under this Employment
Agreement, (A) that has not vested prior to that date shall immediately cease to
vest and shall be forfeited to the Company and cancelled, and (B) that has
vested prior to or on the Termination Date, to the extent subject to an
exercise period, shall remain exercisable for ninety (90) days following the
Termination Date (but in no event beyond the end of each such Equity Grant’s
otherwise applicable exercise period).

 

(e)                                  TERMINATION
WITHOUT CAUSE.  In the event of a
termination of the Executive’s employment by the Company, other than due to (A)
death, (B) Disability, (C) Cause, (D) a notice from one party to the other of
its intent not to extend the Employment Term, the Executive shall be entitled
to the following benefits:

 

(i)                                     The
Executive’s then current Base Salary pro-rated through the Termination Date,
which shall be payable in a lump sum within thirty (30) days of the Termination
Date;

 

(ii)                                  An
amount equal to the sum of (A) the Executive’s then current annualized Base
Salary and (B) the most recent cash incentive paid or the target bonus
available under the Bonus Plan, whichever is higher, payable in a lump sum
within ninety (90) days of the Termination Date; and

 

(iii)                               Each
Equity Grant held by the Executive, whether or not issued under this Employment
Agreement, (A) that has not vested prior to that date shall immediately cease
to vest and shall be forfeited to the Company and cancelled, and (B) that has
vested prior to or on the Termination Date, to the extent subject to an
exercise period, shall remain exercisable for ninety (90) days following the
Termination Date (but in no event beyond the end of each such Equity Grant’s
otherwise applicable exercise period).

 

(f)                                    TERMINATION
DUE TO NON-RENEWAL.  Subject to the first
sentence of Section 10(h), in the event that the Company exercises its right
not to renew this Agreement pursuant to Section 2, the Executive shall be
entitled to the following benefits:

 

(i)                                     The
Executive’s current Base Salary pro-rated through the Termination Date, which
shall be payable in a lump sum within thirty (30) days of the Termination Date;

 

(ii)                                  The
Pro-Rated Annual Bonus, if and to the extent payable; and

 

(iii)                               An
amount equal to, in the sole discretion of the Company, either (A) three (3)
months of the Executive’s then current Base Salary, if the Company requests
that the Executive not continue to serve for the remainder of the Employment
Term, or (B) six (6) months of the Executive’s then current Base Salary if the
Company requests that the Executive continue to serve for the remainder of the
Employment Term, subject to the Company’s right to terminate the Executive’s
employment at any time for Cause; with the amount due under this subsection
(iii) to be payable in each case in a lump sum within thirty (30) days of the
Termination Date.

 

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(g)                                 OTHER
TERMINATION BENEFITS.  In the case of any
of the foregoing terminations, to the extent not previously paid or provided or
otherwise contrary to the terms and conditions of this Agreement, the Executive
or the Executive’s estate or beneficiaries, as the case may be, shall also be
entitled to the balance of any incentive awards due the Executive but not yet
paid (including, without limitation, awards due for performance periods that
have been completed, but have not yet been paid), any expense reimbursements due
the Executive, and other benefits, if any, in accordance with applicable plans
or programs of or contracts or agreements of the Executive with the
Company.  In addition, unless indicated
otherwise in this Agreement, the treatment of any options granted to the
Executive in the case of any of the foregoing terminations shall be governed by
the terms of the VIASYS Equity Incentive Plan or other relevant equity
compensation plan or any associated stock option agreement.

 

(h)                                 CHANGE
IN CONTROL.  If this Agreement is not
renewed by the Company as a result of a Notice of Termination under Section
10(f) (Termination due to Non-Renewal) delivered following a Change in Control,
but only upon the expiration of the Initial Employment Term or the Extension
Term, as applicable, in which the Change of Control occurs, the Company shall
provide to the Executive the benefits described in Section 10(e) (Termination
without Cause) in lieu of the benefits described in Section 10(f), and, in such
event, the Termination Date shall be the last day of the Employment Term.  In addition, in the event of a Change in
Control, the Equity Grants held by the Executive shall be treated in a manner
consistent with the Company’s Equity Incentive Plan, the Executive’s Stock
Option Agreement and this Agreement. 
Notwithstanding anything to the contrary in this Agreement, in the event
the Executive’s employment with the Company is terminated within twelve (12)
months following a Change in Control, the Executive shall be entitled to
benefits equal to the greater of: (i) the benefits due and payable to the
Executive under the change of control plan sponsored by the Company, if any
(the “Change of Control Plan”), or (ii) the benefits due and payable to the
Executive under Section 10 of this Employment Agreement as a result of such
termination.  In furtherance thereof, it
is the parties’ understanding that, in the event of a termination under such
circumstances, the Executive shall only be entitled to receive benefits payable
under either the Change in Control Plan or this Employment Agreement (but not
both).

 

(i)                                     NATURE
OF PAYMENTS.  Any amounts due under this
Section 10 are in the nature of severance payments
considered to be reasonable by the Company and are not in the nature of a
penalty.

 

(j)                                     NO
MITIGATION; NO OFFSET.  The Executive
shall not be required to mitigate the amount of any payment or benefit provided
in this Section 10 by seeking other employment or
otherwise.  Further, except as provided
in Section 10, the amount of any payment or benefits provided for in this
Section 10 shall not be reduced by any compensation earned by the Executive as
a result of employment by another employer.

 

(k)                                  RELEASE.  The additional benefits that are not
unconditionally due under applicable law payable to the Executive under this
Section 10 (including but not limited to the benefits payable under
Section 10(e)(ii)) shall be conditioned upon the Executive’s execution of
a Severance Agreement and General Release (substantially in a form that is
acceptable to the Company in its sole discretion (the “Release”)), within ten
(10) business days of the Termination Date or within such longer period
required by law, and such benefits shall not become payable

 

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until such time as the Executive has executed the
Release and any revocation period contained in the Release has expired without
the Executive having revoked the Release. 
In addition, the Executive’s right to payment under this Agreement shall
cease upon the Executive’s rescission of the Release or material breach of the
Release.

 

11.                                 CONFIDENTIALITY
& ASSIGNMENT OF INVENTIONS.

 

(a)                                  The
Executive shall execute and deliver to the Company on the Effective Date the
Company’s standard employee Confidential Information and Invention Assignment
Agreement, substantially in the form attached hereto as EXHIBIT A, unless the
Executive has already executed such agreement.

 

(b)                                 Upon
the termination of the Executive’s employment, the Executive (or, in the event
of the Executive’s death, the Executive’s personal representative) shall
promptly surrender to the Company the original and all copies of any materials
containing confidential information of the Company which are then in the
Executive’s possession or control; provided, however, that the Executive shall
not be required to surrender the Executive’s rolodexes, personal diaries and
other items of a personal nature.

 

12.                                 NON-COMPETITION;
NON-SOLICITATION.

 

(a)                                  The
Executive acknowledges (i) that in the course of the Executive’s employment
with the Company the Executive will become familiar with trade secrets and
customer lists of, and other confidential information concerning, the Company
and its Affiliates, customers and clients and (ii) that the Executive’s
services will be of special, unique and extraordinary value to the Company.

 

(b)                                 The
Executive agrees that, during the Employment Term and for a period of one year
following the Executive’s termination of employment for any reason (the “Non-Competition
Period”), the Executive shall not in any manner, directly or indirectly, alone
or through any person, firm, corporation or enterprise or as a member of a
partnership or as an officer, director, stockholder, investor or employee of or
advisor or consultant to any person, firm, corporation or enterprise or
otherwise, engage or be engaged, or assist any other person, firm, corporation
or enterprise in engaging or being engaged in any Competitive Activity (as
defined below).  For the purposes of this
Section 12, a “Competitive Activity” shall mean, unless otherwise determined by
the Board, a business that (i) is being conducted by the Company or any
Affiliate at the time in question and (ii) was being conducted, or was under
active consideration to be conducted, by the Company or any Affiliate, at the
date of the termination of the Executive’s employment.

 

(c)                                  The
Executive further agrees that during the Non-Competition Period the Executive
shall not (i) in any manner, directly or indirectly, solicit or recruit (or
attempt to solicit or recruit) any employee of or advisor or consultant to the
Company or its Affiliates to terminate such person’s employment or advisor or
consultant relationship with the Company or its Affiliates, work for a person
other than the Company or its Affiliates, work as an independent contractor, or
engage in any activity that would cause any such employee, advisor or
consultant to violate any agreement with the Company or its Affiliates; (ii) in
any manner, directly or

 

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indirectly, hire or cause to be hired any employee of or advisor or
consultant to the Company or any of its Affiliates for any purpose or in any
capacity whatsoever; or (iii) in connection with any business to which Section
12(b) applies, call on, service, solicit or otherwise do business with any
customer of the Company or any of its Affiliates; provided, however, that the
restriction contained in clause (iii) of this Section 12(c) shall not apply to,
or interfere with, the proper performance by the Executive of the duties and
responsibilities under Section 3 of this Agreement.

 

(d)                                 Nothing
in this Section 12 shall prohibit the Executive from being a passive owner of
not more than two percent (2%) of the outstanding common stock, capital stock
and equity of any firm, corporation or enterprise so long as the Executive has
no active participation in the management or business of such firm, corporation
or enterprise.

 

(e)                                  If
the restrictions stated herein are found by a court to be unreasonable, the
parties hereto agree that the maximum period, scope or geographical area
reasonable under such circumstances shall be substituted for the stated period,
scope or area and that the court shall revise the restrictions contained herein
to cover the maximum period, scope and area permitted by law.

 

(f)                                    If
the Executive violates any provision of Section 12, the restrictions of the
applicable provision shall continue to apply for an additional period of one
year after the date of such violation.

 

13.                                 REMEDIES.

 

Each of
the parties to this Agreement shall be entitled to enforce its rights under
this Agreement specifically, to recover damages and costs (including, without
limitation, reasonable attorney’s fees) caused by any breach of any provision
of this Agreement and to exercise all other rights existing in its favor.  The parties
hereto agree and acknowledge that money damages would not be an adequate remedy
for any breach of the provisions of this Agreement and that any party may in
its sole discretion apply to any court of law or equity of competent
jurisdiction (without posting any bond or deposit) for specific performance
and/or other injunctive relief in order to enforce or prevent any violations of
the provisions of this Agreement. 
Nothing in this Section 13 is intended to prevent the parties from
raising any and all defenses with respect to the necessity for, and scope of,
such injunctive or equitable relief.

 

14.                                 RESOLUTION
OF DISPUTES.

 

Subject
to the provisions of Section 13 regarding specific performance and/or
injunctive relief, any disputes arising under or in connection with this
Agreement or the Executive’s employment or termination of employment shall be
resolved by binding arbitration, to be held in Philadelphia, Pennsylvania, in
each case in accordance with the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association.  Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.  To the extent permitted by applicable law and
rules, the Executive and the Company shall share equally in the administrative
costs and fees of any arbitration, including the arbitrators’

 

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compensation, except that the party requesting arbitration shall be
solely responsible for the applicable filing fees and costs.

 

15.                                 EXPENSES.

 

Subject
to the provisions of Sections 13 and 14, in the event any party hereto seeks a
judicial adjudication of, or an award in arbitration to enforce, the party’s
rights under, or to recover damages for the breach of, this Agreement, the
prevailing party shall be entitled to recover from the other party or parties,
as the case may be, any and all costs actually and reasonably incurred by the
prevailing party in such judicial adjudication or arbitration, including,
without limitation, reasonable attorney’s fees, but only to the extent the
party prevails in such proceeding.

 

16.                                 ASSIGNABILITY;
BINDING NATURE.

 

This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors, heirs (in the case of the Executive) and
assigns.  Rights or obligations of the
Company under this Agreement may be assigned or transferred by the Company
pursuant to a merger or consolidation in which the Company is not the
continuing entity, or the sale or liquidation of all or substantially all of
the assets of the Company, provided that the assignee or transferee is the
successor to all or substantially all of the assets of the Company and such
assignee or transferee assumes the liabilities, obligations and duties of the
Company, as contained in this Agreement, either contractually or as a matter of
law.  The Company further agrees that, in
the event of a sale of assets or liquidation as described in the preceding
sentence, it shall take whatever action it reasonably can in order to cause
such assignee or transferee to expressly assume the liabilities, obligations
and duties of the Company hereunder.  No
rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than the Executive’s rights to compensation
and benefits, which may be transferred only by will or operation of law.  In the event of a Change in Control, the
Company shall require any successor to the Company or any acquiror of all or
substantially all the Company’s assets to assume and honor the Agreement.

 

17.                                 REPRESENTATIONS
AND WARRANTIES.

 

(a)                                  The
Company represents and warrants that it has all requisite corporate power and
authority to enter into this Agreement and that the performance by the Company
of its obligations under this Agreement will not violate any agreement to which
it is a party.

 

(b)                                 The
Executive represents that the execution of this Agreement by the Executive and
the performance by the Executive of the obligations hereunder will not violate
any agreement to which the Executive is a party.

 

(c)                                  The
Executive hereby represents and warrants that the Executive is not bound by the
terms of any agreement with any previous employer or other party to refrain
from competing, directly or indirectly, with the business of such previous
employer or any other party.  The
Executive further represents and warrants that Executive’s performance of all
the terms of this Agreement and as an employee of the Company does not and will
not breach any agreement to keep in confidence proprietary information,
knowledge or data acquired by the Executive in

 

11

 

confidence or in trust prior to Executive’s employment with the
Company.  The Executive will not disclose
to the Company or induce the Company to use any confidential or proprietary
information or material belonging to any previous employer or others.  The Executive will not hereafter grant anyone
any rights inconsistent with the terms of this Agreement.

 

18.                                 ENTIRE
AGREEMENT.

 

This
Agreement and the Exhibit attached hereto and incorporated herein by reference
contain the entire understanding and agreement between the parties concerning
the subject matter hereof and thereof and supersede all prior agreements,
understandings, discussions, negotiations and undertakings, whether written or
oral, between the parties with respect thereto, including, without limitation,
the Prior Employment Agreement.  This is
an integrated document.

 

19.                                 AMENDMENT
OR WAIVER.

 

No
provision in this Agreement may be amended unless such amendment is agreed to
in writing and signed by the Executive and an authorized officer of the
Company, other than the Executive.  No
waiver by either party of any breach by the other party of any condition or
provision contained in this Agreement to be performed by such other party shall
be deemed a waiver of a similar or dissimilar condition or provision at the
same or any prior or subsequent time. 
Any such waiver must be in writing and signed by the Executive or an
authorized officer of the Company, other than the Executive, as the case may
be.

 

20.                                 SEVERABILITY.

 

In the
event that any provision or portion of this Agreement shall be determined to be
invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall be unaffected thereby and shall remain in
full force and effect to the fullest extent permitted by law so as to achieve
the purposes of this Agreement.

 

21.                                 SURVIVORSHIP.

 

Except
as otherwise expressly set forth in this Agreement, the respective rights and
obligations of the parties hereunder shall survive any termination of the
Executive’s employment.  This Agreement
itself (as distinguished from the Executive’s employment) may not be terminated
by either party without the written consent of the other party.

 

22.                                 REFERENCES.

 

In the
event of the Executive’s death or a judicial determination of the Executive’s
incompetence, reference in this Agreement to the Executive shall be deemed,
where appropriate, to refer to the Executive’s beneficiary, estate or other
legal representative.

 

23.                                 GOVERNING
LAW/JURISDICTION.

 

This
Agreement shall be governed in accordance with the laws of the State of Delaware
without reference to principles of conflict of laws.

 

12

 

24.                                 NOTICES.

 

All
notices and other communications required or permitted hereunder shall be in
writing and shall be deemed given when (a) delivered personally, (b) sent by
certified or registered mail, postage prepaid, return receipt requested or (c)
delivered by overnight courier (provided that a written acknowledgment of
receipt is obtained by the overnight courier) to the party concerned at the
address indicated below or to such changed address as such party may
subsequently give such notice of:

 

	
  If to the Company:

  	
   

  	
  VIASYS Healthcare Inc.

  227 Washington Street, Suite 200

  Conshohocken, PA 19428

  Attn.: General Counsel and Corporate Vice President,

  Human Resources

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  The last known address of the Executive, as provided
  to

  the Company by the Executive

  

 

25.                                 HEADINGS.

 

The
headings of the sections contained in this Agreement are for convenience only
and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement.

 

26.                                 COUNTERPARTS.

 

This
Agreement may be executed in counterparts.

 

[Remainder of Page Intentionally Left Blank]

 

13

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the
restatement set forth above.

 

	
   

  	
  VIASYS HEALTHCARE INC.

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  /s/ Randy H. Thurman

  	
   

  
	
   

  	
  Name: Randy H. Thurman

  
	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Mahboob Raja

  	
   

  
	
   

  	
  Mahboob Raja

  

 

14

 

EXHIBIT A

 

Confidential Information and Invention Agreement

 

15Exhibit 10.1

 

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND
RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into this 3rd
day of December, 2004 (the “Effective Date”) by and between Vastera, Inc., a
Delaware corporation with its principal place of business at 45025 Aviation
Drive, Dulles, VA  20166 (“Vastera” or the “Company”), and
Timothy A. Davenport (“Davenport”
or the “Employee”).

RECITALS

WHEREAS, Employee
has been, and is currently, employed by the Company in a critical managerial
position with the Company;

WHEREAS, on February
13, 2004 the Company and Employee entered into that certain Employment
Agreement (the “Employment Agreement”) setting
for the basic terms and conditions of Employee’s employment with the Company;
and

WHEREAS, the
Company believes it to be in the best interest of the Company to modify and
increase the Severance Amount to be paid to the Employee to provide a greater
incentive to the Employee to remain employed by the Company for a period of
time sufficient to enable the Company to execute upon its long-range business
plans.

AGREEMENT

NOW, THEREFORE, in
consideration of the mutual covenants and promises contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

1.             Term of Employment.  The Company hereby agrees to employ the
Employee, and the Employee hereby accepts employment with the Company, upon the
terms set forth in this Agreement, for the period commencing on the Effective Date and
ending on December 31, 2004 (such time period being referred to as the “Initial Term”).  This Agreement shall automatically renew in
one-year increments (each such one-year period being referred to as a “Renewal Term”), unless no later than
90 days prior to the expiration of the Initial Term or any Renewal Term one
Party notifies the other Party in writing of its intention not to renew for an
additional Renewal Term.  The Initial
Term and each and all Renewal Terms are collectively referred to as the “Employment Period”.

2.             Title; Capacity.  The Employee shall serve as President and
Chief Executive Officer of Vastera and as an officer or director of such of
Vastera’s direct or indirect and wholly owned or partially owned subsidiaries
as the duties of the Employee may require from time to time.  The Employee shall be based at the Company’s
headquarters in Dulles, Virginia or such other place within a 40-mile radius
thereof, as may be reasonably requested by the Company.

 

 

The Employee shall
be subject to the supervision of, and shall have such authority as is delegated
to him by, the Board of Directors (the “Board”).

The Employee
hereby accepts such employment and agrees to undertake the duties and
responsibilities inherent in such position and such other duties and
responsibilities as the Company’s Board shall from time to time reasonably
assign to him.  Except during the Stub
Period (defined herein below), the Employee agrees to devote his entire
business time, attention and energies to the business and interests of the
Company during the Employment Period; provided that for reasonable periods of
time each month the Employee may engage in non-competitive business or
charitable activities, such as activities involving, educational, religious and
similar types of organizations, speaking engagements, membership on the board
of directors of such other organizations to which the Company may from time to
time agree, and similar types of activities so long as such activities do not
interfere with the Employee’s responsibilities hereunder.  The Employee agrees to abide by the rules,
regulations, instructions, personnel practices and policies of the Company and
any changes therein that may be adopted from time to time by the Company.  The Employee acknowledges receipt of copies
of all such rules and policies committed to writing as of the Effective Date.

3.             Compensation and Benefits.

3.1           Salary.  Beginning on the Effective Date, the Company
shall pay Employee an annual salary of $350,000 (such amount being referred to
as Employee’s “Base
Salary”).  All amounts to
be paid to Employee hereunder shall be paid semi-monthly, or in such other
manner that is in accordance with the Company’s standard payroll practices,
prorated for any partial compensation period. 
Such Base Salary shall be subject to upward adjustment thereafter by the
Board or by the Compensation Committee if such duties have been delegated
thereto by the Board.

3.2           Annual Review of Employee’s
Aggregate Compensation.  The Board or
the Compensation Committee shall review the Employee’s aggregate compensation
no less frequently than once per annum. 
Such reviews shall take into consideration any changes in the Employee’s
duties, responsibilities, increases in the general and regional cost of living,
the Employee’s prior year performance, and such other factors as the Board or
the Compensation Committee shall deem germane to the review.  Based on the results of such review(s) the
Board or the Compensation Committee may adjust the Employee’s Base Salary, the
Employee’s Annual Bonus, or any combination thereof upward.

3.4             Fringe Benefits.  The Employee shall be entitled to participate
in all benefit programs that the Company has established as of the Effective
Date and such benefit plans as the Company may subsequently establish, modify,
amend, or alter and makes available to its employees, if any, to the extent
that Employee’s position, tenure, salary, age, health and other qualifications
make him eligible to participate.  The
Employee shall be entitled to paid leave in accordance with the Company’s
vacation and leave policies.

 

2

 

3.5           Stock Option Plan and Employee
Stock Purchase Plan.  The Employee
shall be entitled to participate in the Company’s 2000 Stock Incentive Plan
(the “Option Plan”)
and the 2000 Employee Stock Purchase Plan (the “ESPP”).

3.6           Reimbursement of Expenses.  The Company shall reimburse the Employee for
all reasonable travel, entertainment and other expenses incurred or paid by the
Employee in connection with, or related to, the performance of [his/her]
duties, responsibilities or services under this Agreement, upon presentation by
the Employee of documentation, expense statements, vouchers, and such other
supporting information as the Company may request, or as may be consistent with
standard company practices, provided, however, that the amount available for
such travel, entertainment and other expenses may require approval in advance
or may be fixed in advance by the Board.

4.             Employment Termination.  The employment of the Employee by the Company
pursuant to this Agreement shall terminate upon the occurrence of any of the
following:

4.1             Expiration of the Employment Period
in accordance with Section 1;

4.2             At the election of the Company, “for cause”,
immediately upon written notice by the Company to the Employee.  For the purposes of this Section 4.2,
termination for cause shall be
deemed to exist upon:

(a)                                        the conviction of the Employee of, or the
entry of a pleading of guilty or nolo contendere by the Employee to, any crime
involving moral turpitude that may reasonably adversely reflect on the Company
or any felony;

(b)                                       willful misconduct in connection with the
Employee’s duties or willful failure to use reasonable effort to perform
substantially his responsibilities in the best interest of the Company
(including, without limitation, breach by the Employee of this Agreement),
except in cases involving the mental or physical incapacity or disability of
the Employee; provided  however, that the Board may terminate the
Employee’s employment pursuant to Section 4.2(b) only after the failure by the
Employee to correct or cure, or to commence and continue to pursue the
correction or curing of, such refusals within 30 days after receipt by the
Employee of written notice by the Board of each specific claim of any such
misconduct or failure.  The Employee
shall have the opportunity to appear before the Board to discuss such written
notice during such 30-day period.  “Willful misconduct”
and “willful failure to
perform” shall not include actions or inactions on the part of
the Employee that were taken or not taken in good faith by the Employee; and

(c)                                        fraud, material dishonesty, or gross
misconduct in connection with the Company perpetuated by the Employee.

 

3

 

4.3           Upon the death or 30 days after the
disability of the Employee.  As used in
this Agreement, the term “disability” shall mean the inability of the Employee,
due to a physical or mental disability, for a period of 180 days, regardless of
whether consecutive, during any 360-day period to perform the services
contemplated under this Agreement.  A
determination of disability shall be made by a physician satisfactory to both the
Employee and the Company, provided that if the Employee and the Company do not
agree on a physician, the Employee and the Company shall each select a
physician and these two together shall select a third physician, whose
determination as to disability shall be binding on all parties;

4.4           At the election of the Employee, upon
not less than 30 days prior written notice of termination other than for “good
reason” as defined below; or

4.5           At the election of the Company,
otherwise than for cause, upon not less than 10 business days prior written
notice or at the election of the Employee for “good reason” upon not less than 20
business days prior written notice of termination.  Good reason shall be deemed to exist when there
occurs: (A) a material breach of this Agreement by the Company; (B) any
reduction in the Employee’s level of compensation without the approval of the
Employee; or (C) a transfer of the Employee’s work location for purposes of
performing his duties hereunder to a location that is beyond a 40-mile radius
from the Company’s current headquarters location in Dulles, Virginia.

5.             Effect of Termination.

5.1           Termination for Cause or at the
Election of the Employee.  In the
event the Employee’s employment is terminated for cause pursuant to Section 4.2,
or at the election of the Employee pursuant to Section 4.4, the Company shall
pay to the Employee the compensation and benefits otherwise payable to him
under Section 3 through the last day of his actual employment by the Company.

5.2           Termination for Death or
Disability.  If the Employee’s
employment is terminated by death or because of disability pursuant to Section
4.3, the Company shall pay to the estate of the Employee or to the Employee, as
the case may be, the compensation which would otherwise be payable to the
Employee up to the end of the month in which the termination of his employment
because of death or disability occurs.

5.3           Termination at the Election of the
Company or the Employee for Good Reason. 
If the Employee’s employment is terminated at the election of the
Company, otherwise than for cause, or by the Employee for good reason pursuant
to Section 4.5, subject to this Section 5.3, the Company shall pay to Employee
an aggregate severance amount of $950,000 (such amount being referred to as the
“Severance Amount”).  The Severance Amount shall be paid in a single
lump sum amount, and such payment shall be contingent upon the Employee signing
a Release and Waiver Agreement substantially in the form attached hereto as Exhibit
A.  In addition to the Severance
Amount, the

 

4

 

Company shall
provide Employee with full medical, dental, and vision benefits through the
sixth full month following the date of Employee’s termination.

5.4           Change of Control Event.

In addition to the
severance payment obligations set forth in Section 5.3 above, if

(i)                                 a Change of Control Event
(as defined hereinbelow) occurs and

(ii)                              the Employee’s employment with the
Company following such Change of Control Event is maintained for a period of 3
months (such 3-month period of time being referred to as the “Initial Retention
Period”),

the Employee shall
have the option to terminate his employment without good reason
during the period that commences on the expiration of the Initial Retention
Period described in subcaluse (ii) above and expires 30 days thereafter (the “Window Period”); provided, however,
that the Employee must deliver to the Company no less than two weeks’ advance
written notice of his election to terminate his employment during the Window
Period under this Section 5.4.  Such
two-week’s advance notice may be delivered prior to the expiration of the
Initial Retention Period.  If the
Employee terminates his employment without good reason
at anytime during the Window Period with the requisite two weeks’ advance
written notice, the Company shall be required to pay the Severance Amount and
honor all other terms and conditions of this Agreement.

5.5           Extension of Option Exercise Period;
Acceleration of Option Vesting.

(a)                           Notwithstanding
anything to the contrary contained in the exercise provisions of any of
Employee’s existing agreements governing the granting and exercising of options
to purchase shares of the Company’s Common Stock, irrespective of whether such
options are incentive stock options (“ISO”s) or nonstatutory stock options (“Nonquals”) or any
such agreements executed by the Employee and the Company subsequent to the
Effective Date, the Company agrees that Employee shall have six-months from the
Employee’s termination date in which to exercise all options that are vested as
of the date upon which Employee’s employment was terminated, subject to any
trading window requirements or other restrictions imposed under the Company’s
insider trading policy.  This subsection
5.5(a) hereby (i) amends and shall be deemed an amendment to the exercise
provisions of each and every existing agreement of Employee’s governing the
granting and exercising of options (both ISO and Nonqual) and (ii) is deemed
incorporated by reference into any agreement between the Employee and the
Company governing the granting and exercising of options (both ISO and Nonqual)
executed subsequent to the date hereof, as though such provision were restated
therein in their entirety.

 

5

 

(b)                           Notwithstanding
anything to the contrary contained in the exercise provisions of any of
Employee’s existing agreements governing the granting and exercising of ISOs
and Nonquals, if during the Employment Period a Change of Control Event (as
defined below) occurs, 100% of the unvested portion of all options held by
Employee as of the date of Change of Control Event shall be deemed vested and
Employee shall be entitled to exercise such options during the time period
described in subsection 5.5(a).  For
purposes of this section 5.5(b) a “Change of Control Event” shall be deemed to
exist if there occurs either:

(i)                                     a merger or
consolidation in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Company’s outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such transaction, or

(ii)                                  the sale,
transfer or other disposition of all or substantially all of the Company’s
assets in complete liquidation or dissolution of the Company.

5.6           Gross Up for Tax Treatment. 
The Company agrees that if

(A)                              because of the operation of any of the
provisions of this Agreement, the payments to be made to Employee and the acceleration
of option vesting hereunder are deemed “golden parachute payments” under the Internal
Revenue Code of 1984, as amended, and

(B)                                      Employee is obligated to pay an excise
tax associated with such golden parachute
payments,

the Company shall
reimburse the Employee in full for both (i) the amount of any such excise tax
owed upon such golden parachute payments and (ii) any excise or ordinary income
taxes owed in connection with the payment of the amount described in the
preceding clause (i) (such payments being referred to as the “gross up amounts”).

5.7           Survival.  The provisions of Sections 6 and 7 shall
survive the termination of this Agreement.

6.             Non-Compete.

6.1           So long as the Company is not in
breach of this Agreement, during the Employment Period and for a period of one
year after the termination or expiration thereof, the Employee will not
directly or indirectly as an individual proprietor, partner, stockholder,
officer, employee, director, joint venturer, investor, lender, or in any other

 

6

 

capacity
whatsoever (other than as the holder of not more than 5% of the total
outstanding stock of a publicly held company), engage in the business of
providing global trade management services as performed by the Company on the
date of termination of Employee’s employment within a 40-mile radius of Dulles,
Virginia.

6.2           So long as the Company is not in
breach of this Agreement, during the Employment Period and for a period of one
year following the termination or expiration thereof, the Employee will not
directly or indirectly:

(a)           as an individual
proprietor, partner, stockholder, officer, employee, director, joint venturer,
investor, lender, or in any other capacity whatsoever (other than as the holder
of not more than 5% of the total outstanding stock of a publicly held Company),
engage in the business of developing, producing, marketing or selling software
or providing services of the kind or type developed or being developed,
produced, marketed or sold by the Company or its affiliates while the Employee
was employed by the Company; or

(b)           recruit, solicit or induce, or
attempt to induce, any employee or employees of the Company or its affiliates
to terminate their employment with, or otherwise cease their relationship with,
the Company or its affiliates; or

(c)           solicit, divert or take away, or
attempt to divert or to take away, the business or patronage of any of the
clients, customers or accounts, or prospective clients, customers or accounts,
of the Company or its affiliates which were contacted, solicited or served by
the Employee while employed by the Company.

6.3           The parties agree that the relevant
public policy aspects of covenants not to compete have been discussed, and that
every effort has been made to limit the restrictions placed upon the Employee
to those that are reasonable and necessary to protect the Company’s legitimate
interests.

6.4           If any restriction set forth in this
Section 6 is found by any court of competent jurisdiction to be unenforceable because
it extends for too long a period of time or over too great a range of
activities or in too broad a geographic area, it shall be interpreted to extend
only over the maximum period of time, range of activities or geographic area as
to which it may be enforceable.

6.5           The restrictions contained in this
Section 6 are necessary for the protection of the business and goodwill of the
Company and/or its affiliates and are considered by the Employee to be
reasonable for such purposes.  The
Employee agrees that any breach of this Section 6 will cause the Company and/or
its affiliates substantial and irrevocable damage and therefore, in the event
of any such breach, in addition to such other remedies which may be available,
the Company shall have the right to seek specific performance and injunctive
relief.  The Employee acknowledges that he
has received compensation for

 

7

 

the terms of this
Section 6 pursuant to various stock option agreements and other compensation.

 

7.             Proprietary
Information and Developments.

 

                                7.1           Proprietary Information.

 

(a)           The Employee agrees that all
information and know-how, regardless of whether in writing, relating to the
business, technical or financial affairs of the Company and that is generally
understood in the industry as being trade secret, confidential and/or
proprietary, that is designated as being confidential or proprietary
information of the Company, either verbally or in writing, or that is
designated as representing trade secrets of the Company, either verbally or in
writing (collectively, “Proprietary
Information”), is and shall be the exclusive property of the
Company.  For purposes of this Agreement,
Property Information shall mean, by way of illustration and not limitation, all
information and know-how (regardless of whether patentable and regardless of
whether copyrightable) owned, posses or used by the Company, including, without
limitation, any invention, existing or future product, formula, method,
manufacturing techniques and procedures, composition, compound, project,
development, plan, vendor information, supplier information, customer
information, apparatus, equipment, trade secret, process, research, reports,
clinical data, financial data, technical data, test data, know-how, computer
program, software, software documentation, hardware design, technology,
marketing or business plan, forecast, unpublished financial statement, budget
license, patent applications, contracts, joint ventures, price, cost and
personnel data.

 

(b)           The Employee agrees not to and will
not disclose any Proprietary Information to others outside the Company or use
the same for any unauthorized purposes without written approval by an officer
of the Company, from the Effective Date, during or after his employment unless
and until such Proprietary Information (i) has become public knowledge through
legal means without fault by the Employee, or (ii) is already public knowledge
prior to the signing of this Agreement.

 

(c)           The Employee agrees that all files,
letters, memoranda, reports, records, data, schematics, sketches, drawings,
laboratory notebooks, program listings, computer programs, databases, products,
test equipment, prototypes or other written, photographic, magnetic or other
tangible material containing or embodying Proprietary Information, whether
created by the Employee or others, which shall come into his custody or
possession (hereinafter collectively referred to as the Company Records) shall
be, shall continue to be and are the exclusive property of the Company to be
used by the Employee only in the performance of his duties for the
Company.  All such Company Records or
copies thereof and all

 

8

 

other tangible property of the Company in the custody
or possession of the Employee shall be delivered to the Company, upon the
earlier of (i) a request by the Company or (ii) termination of this
Agreement.  After such request,
termination or delivery, the Employee agrees not to and shall not retain any
such Company Records or copies thereof or any such other tangible property.

 

7.2           Developments.

 

(a)           The Employee agrees to make and will
make full and prompt disclosure to the Company of all inventions, know-how,
improvements, product ideas, new products, discoveries, methods, developments,
software, and works of authorship, whether or not patentable and whether or not
copyrightable, and all other intellectual property rights, including but not
limited to patents, copyrights, copyrightable works, trade secrets and
trademarks, and all books, schematics, magnetic files and written records
related thereto which are or were created, made, conceived, reduced to practice
by or became owned by the Employee or under his direction or jointly with
others either (i) during his employment whether or not during normal working
hours or on the premises of the Company, or (ii) prior to his employment by the
Company if used by the Company during his employment by the Company, in either
event, to the extent relevant to the Company’s business, including but not
limited to, its techniques, developments, projects or products (all of which,
whether disclosed or not, are collectively referred to in this Agreement as “Developments”).

 

(b)           The Employee agrees to assign and
does hereby assign, convey and transfer to the Company (or any person or entity
designated by the Company) all his rights, title and interest in and to all
Developments; provided that the Employee may use Developments described in
(a)(ii) above in a manner that complies with terms set forth in Section 6
(Non-Compete) and Section 7.1 (Proprietary Information) hereof.

 

(c)           The Employee agrees to cooperate
fully with the Company, both during and after his employment with the Company,
with respect to the worldwide procurement, maintenance and enforcement,
including assistance or cooperation in legal proceedings, of copyrights,
patents and similar protections (both in the United States and foreign
countries) relating to Developments; and, if such cooperation by the Employee
is required after the Employee has ceased to be employed by the Company, then
the Company will reimburse the Employee for any expenses reasonably incurred by
Employee in connection with such cooperation. 
The Employee shall sign all papers, copyright applications, assignments,
declarations, powers of attorney, patent applications, and other related or
necessary documents, which the Company may deem necessary or desirable in order
to enforce and/or protect its rights and interests in any Developments or any
Proprietary Information.

 

9

 

7.3           Other Agreements.  Employee hereby represents that he is not
bound by the terms of any agreement with any previous employer or other party
to refrain from using or disclosing any trade secret or confidential or
proprietary information in the course of his employment with the Company or to
refrain from competing, directly or indirectly, with the business of such
previous employer or any other party. 
Employee further represents that his performance of all the terms of
this Agreement and as an employee of the Company does not and will not breach
any agreement to keep in confidence proprietary information, knowledge or data
acquired by him in confidence or in trust prior to his employment with the
Company.

7.4           Company and Affiliates.  Where the term “Company” is used in this Section 7 it
will be deemed to include any affiliate of the Company, including but not
limited to Vastera, Inc.

8.             Notices.  All notices required or permitted under this
Agreement shall be in writing and shall be deemed effective upon delivery
personally, by facsimile or by overnight mail, or upon deposit in the United
States Post Office, by registered or certified mail, postage prepaid, addressed
to the other party at the address shown above, or at such other address or
addresses as either party shall designate to the other in accordance with this
Section 8.

9.             Pronouns.  Whenever the context may require, any
pronouns used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular forms of nouns and pronouns shall
include the plural, and vice versa.

10.           Entire Agreement.  This Agreement and the exhibits hereto
constitutes the entire agreement between the parties and supersedes all prior
agreements and understandings, whether written or oral, relating to the subject
matter of this Agreement.

11.           Amendment.  This Agreement may be amended or modified
only by a written instrument executed by both the Company and the Employee.

12.           Governing Law.  This Agreement shall be construed,
interpreted and enforced in accordance with the laws of the Commonwealth of
Virginia.

13.           Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of both parties and their respective successors and
assigns, including any corporation with which or into which the Company may be
merged or which may succeed to its assets or business, provided, however, that
the obligations of the Employee are personal and shall not be assigned by him.

14.           Trial by Jury.  The parties agree that they have waived their
right to a jury trial with respect to any controversy, claim, or dispute
arising out of or relating to this Agreement, or the breach thereof, or arising
out of or relating to the employment of the Employee, or the termination
thereof, including any claims under federal, state, or local law, and that any
such

 

10

 

controversy,
claim, or dispute shall be heard and adjudicated in the state courts of the
Commonwealth of Virginia, in Fairfax County.

15.           Miscellaneous.

15.1         No delay or omission by the Company in
exercising any right under this Agreement shall operate as a waiver of that or
any other right.  A waiver or consent
given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any
other occasion.

15.2         The captions of the sections of this
Agreement are for convenience of reference only and in no way define, limit or
affect the scope or substance of any section of this Agreement.

15.3         In case any provision of this Agreement
shall be invalid, illegal or otherwise unenforceable, the validity, legality
and enforceability of the remaining provisions shall in no way be affected or
impaired thereby.

15.4         This Agreement is effective as of the
date of execution of this Agreement, will survive Employee’s employment with
the Company, and does not in any way restrict Employees right or the right of
the Company to terminate Employee’s employment.

15.5         Employee certifies and acknowledges
that he has carefully read all of the provisions of this Agreement and that she
understands and will comply fully and faithfully with its provisions.

 

11

 

IN WITNESS
WHEREOF, the parties hereto have executed this Employment Agreement as of the
day and year set forth above.

 

 

	
  VASTERA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
   

  
	
   

  	
  Brian D. Henderson

  
	
   

  	
  Chief Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
   

  
	
   

  	
  Maria Henry

  
	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  
	
  Timothy A. Davenport

  
			

 

12

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