Document:

Sales Agreement

 

AGREMENT dated October 1, 2004 (“Agreement”) by and between Goldtech Mining Corporation, a Nevada Corporation, which is the successor corporation to Egan Systems, Inc., a Delaware Corporation (hereinafter referred to as the “Seller”); and Daniel J. Prins of Cary, NC (hereinafter referred to as the “Purchaser”); and Envyr Corporation, a Delaware Corporation with offices at Suite 160, 4904 Waters Edge Drive, Raleigh, NC (hereinafter referred to as the “Company”).

 

	
WHEREAS, Seller does hold all of the shares of common stock of Company; and,

 

	
WHEREAS, Seller desires to divest itself of Company; and,

 

	
WHEREAS, Purchaser desires to purchase Company;

 

NOW THEREFORE, in consideration of the mutual benefits to be derived hereby and the representations, warranties, covenants and agreements herein contained, Purchaser, Seller, and Company agree as follows:

 

Article I

Sale and Transfer of Stock

 

1.1        Upon the terms and subject to the conditions hereinafter set forth, at the Closing (as hereinafter defined), Seller shall sell, transfer and deliver to the Purchaser and Purchaser shall acquire from Seller all of the issued and outstanding shares of capital stock of the Company (as hereinafter defined), free and clear of all manner of liens, pledges, encumbrances, charges and claims thereon. Certificates evidencing the Stock to be delivered by Seller to Purchaser as hereinafter provided shall either be duly endorsed in blank or accompanied by appropriate stock powers endorsed in blank. Such certificates shall also be accompanied by evidence satisfactory to Purchaser of payment of any applicable transfer taxes.

 

1.2       Upon the sale, transfer, and delivery to Purchaser by Seller of the Stock as set forth in section 1.1, and in consideration therefore, Purchaser shall pay Seller the sum of $1 in hand.

 

Article II

Representations and Warranties of Seller

 

The Seller makes the following representations and warranties to Purchaser (and Purchaser, in executing, delivering, and consummating this Agreement, have relied upon the correctness and completeness of each such representation and warranty):

 

2.1       Seller owns on the date hereof, and, on the Closing date hereinafter provided, will own, free and clear of all liens, charges and encumbrances, all of the capital stock of all classes of the Company.

 

 

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Sales Agreement

 

 

2.2       The Company is a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware; is duly qualified to transact business as a foreign corporation and in good standing in the states in which its activities require qualification and the failure to be so qualified would have a material and adverse effect on the business and operations of the Company; has all corporate power necessary to engage in the business in which it is presently engaged; and has an authorized capital stock of 5,000,000 shares of common stock of $.01 par value, 100 of which are validly issued and outstanding, fully paid and non-assessable.

 

2.3       Seller has heretofore furnished to Purchaser copies of the balance sheet of the Company as at September 30, 2004. Said balance sheet and notes thereto accurately set forth the financial condition of the Company as of said date, and were prepared in conformity with generally accepted accounting principles consistently applied and are annexed hereto as Exhibit 2.3.

 

2.4       The Company has good and marketable title to all of its property and assets (except property and assets disposed of since such date in the usual and ordinary course of business) subject to no mortgage, pledge, lien or other encumbrance except as disclosed in the balance sheet or in Exhibit 2.3 annexed hereto and made a part thereof.

 

2.5       As at September 30, 2004, the Company had no obligations, liabilities or commitments, contingent or otherwise, of a material nature which are not provided for except as set forth in such balance sheet or in Exhibit 2.3.

 

2.6       Since the date of the aforementioned balance sheet, there has been no change in the nature of the business of the Company nor in its financial condition or property, other than changes in the usual or ordinary course of business, none of which has been materially adverse, and the Company has incurred no obligations or liabilities nor made any commitments other than in the usual and ordinary course of business or as disclosed in Exhibit 2.3.

 

2.7       The Company is not a party to any employment contract with any officer, director, or stockholder, or to any lease, agreement or other commitment not in the usual course of business, nor to any pension, insurance, profit-sharing or bonus plan, except as disclosed in Exhibit 2.3 or as hereinafter provided.

 

2.8       The Company is not a defendant, nor a plaintiff against whom a counter-claim has been asserted, in any litigation, pending or threatened, nor has any material claim been made or asserted against the Company, nor are there any tax or other proceedings threatened or pending before any federal, state or municipal government, or any department, board, body or agency thereof, involving the Company.

 

2.9       The Company is not in default under any agreement to which it is a party, nor in the payment of any of its obligations. 

 

2.10     This Agreement and the documents delivered pursuant hereto have been duly executed and delivered by the Seller and are valid and binding upon Seller in accordance with their terms.

 

 

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Sales Agreement

 

 

2.11     Neither the execution and delivery of this Agreement nor compliance by the Company with any of the provisions hereof nor the consummation of the transactions contemplated hereby, will:

	
(a)

	
Violate or conflict with any provision of the Certificate of Incorporation or Bylaws of the Company;

	
(b)

	
Violate or, alone or with notice of the passage of time, result in the material breach or termination of, or otherwise give any contracting party the right to terminate, or declare a material default under, the terms of any material agreement or other document or undertaking, oral or written to which the Company is a party or by which it or any of its properties or assets may be bound (except for such violations, conflicts, breaches or defaults as to which required waivers or consents by other parties have been, or will, prior to the Closing, be obtained);

	
(c)

	
Result in the creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of the Company pursuant to the terms of any such agreement or instrument;

	
(d)

	
Violate any judgment, order, injunction, decree or award against, or binding upon the Company or upon its properties or assets; or

	
(e)

	
Violate any law or regulation of any jurisdiction relating to either the Company or any of its respective securities, assets or properties.

 

2.12      All negotiations relative to this Agreement and the transactions contemplated hereby have been carried on directly with Purchaser by Seller, without the intervention of any broker, finder, investment banker or other third party. Neither the Company nor Seller have engaged, consented to, or authorized any broker, finder, investment banker or any third party to act on its behalf, directly or indirectly, as a broker or finder in connection with the transactions contemplated by this Agreement.

 

2.13     No representation, warranty or statement by Seller in this Agreement contains any untrue statement of a material fact, or omits or will omit to state a fact necessary in order to make such representation, warranties or statements not materially misleading.

 

2.14     Assignment of Assets. The Seller has transferred certain rights and assets of the former Egan Systems, Inc. to the Company pursuant to an agreement dated January 1, 2004, which is annexed hereto as exhibit 2.14.

 

Article III

Representations and Warranties of Purchaser

 

	
3.1

	
Purchaser is a natural person who is a resident of the State of North Carolina.

 

3.2       The execution and delivery of this Agreement by Purchaser and the consummation of the transactions contemplated hereby will not violate any judgment, order, injunction, decree, or award against, or binding upon Purchaser or upon his properties or assets.

 

 

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Sales Agreement

 

 

3.3       This Agreement and the documents delivered pursuant hereto have been duly executed and delivered by Purchaser and are valid and binding upon each of them in accordance with their terms.

 

3.4       All negotiations relative to this Agreement and the transactions contemplated hereby have been carried on directly with Seller by Purchaser without the intervention of any broker, finder, investment banker or other third party. Neither the Company nor Seller have engaged, consented to, or authorized any broker, finder, investment banker or any third party to act on its behalf, directly or indirectly, as a broker or finder in connection with the transactions contemplated by this Agreement.

 

3.5       Neither the execution and delivery of this Agreement nor compliance by the Purchaser with any of the provisions hereof nor the consummation of the transactions contemplated hereby, will:

	
(a)

	
Violate or, alone or with notice of the passage of time, result in the material breach or termination of, or otherwise give any contracting party the right to terminate, or declare a material default under, the terms of any material agreement or other document or undertaking, oral or written to which the Company is a party or by which it or any of its properties or assets may be bound (except for such violations, conflicts, breaches or defaults as to which required waivers or consents by other parties have been, or will, prior to the Closing, be obtained);

	
(b)

	
Violate any judgment, order, injunction, decree or award against, or binding upon the Purchaser or upon their properties or assets; or

	
(c)

	
Violate any law or regulation of any jurisdiction relating to either the Purchaser or any of their respective securities, assets or properties.

 

3.6       No representation, warranty or statement by Purchaser in this Agreement contains any untrue statement of a material fact, or omits or will omit to state a fact necessary in order to make such representation, warranties or statements not materially misleading.

 

Article IV

Pre-Closing Covenants

 

The Company and Seller, jointly and severally, hereby covenant that, from and after the date hereof and until the Closing or the earlier termination of this Agreement:

 

4.1       Between the date of the balance sheet referred to in section 2.3 hereof and the Closing date, the Company will not have (i) paid or declared any dividends on, or made any distributions in respect of, or issued, purchased or redeemed, any of the outstanding shares of its capital stock, or (ii) made or authorized any changes in its Certificate of Incorporation or in any amendment thereto or in its Bylaws, or (iii) made any commitments or disbursements or incurred any obligations or liabilities of a substantial nature and which are not in the usual and ordinary course of business, or (iv) mortgaged or pledged or subjected to any lien, charge or other encumbrance any of its assets, tangible or intangible or entered into any other transactions, except in the usual and ordinary course of business, or (v) sold, leased, or transferred or contracted to sell, lease or
transfer any assets, tangible or intangible or entered into any other 

 

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Sales Agreement

 

transactions, except in the usual and ordinary course of business, or (vi) made any loan or advance to any stockholder, officer or director of the Company or to any other person, firm or corporation except in the usual and ordinary course of business, or (vii) made an material change in any existing employment agreement or increased the compensation payable or made any arrangement for the payment of any bonus to any officer, director, employee or agent, except as set forth in Exhibit 2.7 hereof.

 

4.2       The Company shall afford to the officers, attorneys, accountants and other authorized representatives of Purchaser free and full access, during regular business hours and upon reasonable notice, to the books, records, personnel and properties of the Company so that Purchaser may have full opportunity to make such review, examination and investigation as it may desire of its respective business and affairs. The Company will cause its employees, accountants, and attorneys to cooperate fully with said review, examination and investigation to make full disclosure to Purchaser of all material facts affecting its financial condition and business operation.

 

4.3       The Company shall conduct its business only in the ordinary and usual course and make no material change in any of its policies without the prior written consent of Purchaser, which shall not be unreasonable withheld or delayed.

 

4.4       The Company shall not incur any obligations or liability, absolute or contingent, other than: (i) debts, liabilities, and obligations set forth in the balance sheet annexed hereto as Exhibit 2.3; (ii) debts, liabilities and obligations under the contracts, agreements, past practices, arrangements, relationship, documents and instruments listed, described or contained in this Agreement or in the Exhibits annexed to the Agreement.

 

4.5       Seller will use its best efforts to preserve the Company’s business organization intact, to keep available the services of its present officers, employees and consultants (except as Purchaser may approve), and to preserve its good will.

 

4.6       Seller will provide Purchaser with interim income statements and other financial information as is customarily prepared for the Company up to and including the Closing date, as the Purchaser may reasonably request.

 

4.7       The Company and Seller will each (i) use their best efforts to assure that all of the representations and warranties contained herein are true in all material respects as of the Closing as if repeated at and as of such time, and that no material breach or default shall occur with respect to any of its covenants, representations or warranties contained herein that has not been cured by the Closing; (ii) not voluntarily take any action or do anything which will not cause a breach of or default respecting such covenants, representations or warranties; and (iii) promptly notify Purchaser of any event or fact which represents, or is likely to cause such a breach or default.

 

Article V

Conditions Precedent to the Obligations of Purchaser to Close

 

 

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Sales Agreement

 

 

The obligation of the Purchaser to enter into and complete the Closing is subject to the fulfillment, prior to or on the Closing date, of each of the following conditions, and one or more of which may be waived by Purchaser (except when the fulfillment of such condition is a requirement of law).

 

5.1       All representations and warranties of the Company and Seller contained in this Agreement and in any written statement, exhibit, certificate, schedule or other document delivered pursuant hereto or in connection with the transactions contemplated hereby shall be true and correct in all material respects as at the Closing date, as if made at the Closing and as of the Closing date.

 

5.2        The Company and Seller shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied by each of them prior to or at the Closing.

 

5.3       No action, suit, proceeding or investigation shall have been instituted, and be continuing before a court or by a governmental body or agency, or shall have been threatened and be unresolved, to restrain or to prevent or to obtain damages in respect of, the carrying out of the transactions contemplated hereby, or which might materially affect the right of Purchaser to own the Company’s stock or to operate or control the assets, properties and business of the Company after the Closing date, or which might have a materially adverse effect thereon.

 

5.4       An audit of the Company, including but not limited to accounts receivable, accounts payable, inventory, expenses, payroll, taxes, and lien search shall have been performed by an accounting firm selected by the Purchaser, the results of which shall have been satisfactory to the Purchaser in their sole discretion.

 

5.5       There shall have been no materially adverse change at the closing date in the business, assets, and properties, financial status or prospects of the Company from the date of the balance sheet.

 

5.6       The Company and Seller shall have delivered all such other certificates and documents as Purchaser or their counsel may have reasonable requested.

 

5.7       All actions, proceedings, instruments and documents required to carry out this Agreement, or incidental thereto, and all other related legal matters shall have been approved as to form and substance by Purchaser’s counsel, which approval shall not be unreasonably withheld or delayed.

 

Article VI

Conditions Precedent to the Obligations of Seller to Close

 

The obligation of the Company and Seller to enter into and complete the Closing is subject to the fulfillment, prior to or on the Closing date, of each of the following conditions, and one or more of which may be waived by the Company and Seller (except when the fulfillment of such condition is a requirement of law).

 

 

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Sales Agreement

 

 

6.1       All representations and warranties of the Purchaser contained in this Agreement and in any written statement, exhibit, certificate, schedule or other document delivered pursuant hereto or in connection with the transactions contemplated hereby shall be true and correct in all material respects as at the Closing date, as if made at the Closing and as of the Closing date.

 

6.2        Purchaser shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied by each of them prior to or at the Closing.

 

6.3       No action, suit, proceeding or investigation shall have been instituted, and be continuing before a court or by a governmental body or agency, or shall have been threatened and be unresolved, to restrain or to prevent or to obtain damages in respect of, the carrying out of the transactions contemplated hereby, or which might materially affect the right of Purchaser to own the Company’s stock or to operate or control the assets, properties and business of the Company after the Closing date, or which might have a materially adverse effect thereon.

 

6.4       Purchaser shall have delivered all such other certificates and documents as Seller or its counsel may have reasonable requested.

 

6.5       All actions, proceedings, instruments and documents required to carry out this Agreement, or incidental thereto, and all other related legal matters shall have been approved as to form and substance by counsel to Seller and the Company, which approval shall not be unreasonably withheld or delayed.

 

Article VII

Closing

 

7.1       The Closing provided for herein (the “Closing”) shall take place at the offices of the Company at 11:00 AM on October 22, 2004, or at such other time and place as may be mutually agreed to by the parties hereto. Such date is referred to in this Agreement as the “Closing date”.

 

	
7.2

	
At the Closing, Seller will deliver or cause to be delivered to Purchaser:

	
(a)

	
Certificates representing the Stock in accordance with section 1.1 hereof; and

	
(b)

	
Such other certified resolutions, documents, exhibits and certificates as are required to be delivered by the Company and Seller pursuant to the provisions of this Agreement.

 

	
7.3

	
At the Closing, Purchaser will deliver or cause to be delivered to Seller:

	
 

	
 

	
(c)

	
The sum of $1 in U.S. currency in accordance with section 1.2 hereof; and

				

	
(d)

	
Such other certified resolutions, documents, exhibits and certificates as are required to be delivered by the Purchaser pursuant to the provisions of this Agreement.

 

Article VIII

 

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Sales Agreement

 

 

Survival of Representations; Indemnification

 

8.1       The parties hereto agree that their respective representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing for a term of one (1) year with the exception of those regarding taxes which shall survive until the expiration of the respective periods within which such taxes may be assessed.

 

8.2       Seller agrees to save, defend and indemnify Purchaser against, and hold it harmless from any and all liabilities, of every kind, nature and description, fixed or contingent (including, without limitation, counsel fees and expenses in connection with any action, claim or proceeding relating to such liabilities) arising out of any transaction or event commencing or occurring on or prior to the Closing date, which is not fully disclosed or provided for in the Balance Sheet, this Agreement or the several exhibits hereto, including without limitation, any tax liabilities to the extent not so reflected or reserved against in the Balance Sheet.

 

8.3       Purchaser agrees to notify Seller with reasonable promptness of any claim asserted against it in respect of which Seller may be liable under this Agreement, which notification shall be accompanied by a written statement setting forth the basis of such claim and the manner of calculation thereof.

 

8.4       The rights of Purchaser under this Article are without prejudice to any other rights or remedies that it may have by reason of this Agreement or as otherwise provided by law.

 

Article IX

Termination and Waiver

 

9.1       Anything herein or elsewhere to the contrary notwithstanding, this Agreement may be terminated and the transactions provided for herein abandoned at any time prior to the Closing date:

 

	
(a)

	
by mutual consent of Purchaser and Seller;

	
(b)

	
by Purchaser if any of the conditions set forth in Article V hereof shall not have been fulfilled on or prior to closing, or shall become incapable of fulfillment, and shall not have been waived;

	
(c)

	
by the Company and the Seller if any of the conditions set forth in Article VI hereof shall not have been fulfilled on or prior to Closing, or shall have become incapable of fulfillment, and shall not have been waived;

	
(d)

	
by either party if any material legal action or proceeding shall have been instituted or threatened seeking to restrain, prohibit, invalidate or otherwise affect the consummation of the transactions contemplated by this Agreement.

 

In the event that this Agreement is terminated as described above, this Agreement shall be void and of no force and effect, without any liability or obligation on the part of the parties hereto.

 

9.2       Any condition on the performance of the Company, Seller or the Purchaser which legally may be waived on prior to the Closing date may be waived at any time by the party 

 

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Sales Agreement

 

entitled to the benefit thereof by action taken or authorized by an instrument in writing executed by the relevant party or parties. The failure of any party at any time or times to require performance of any provisi9on hereof shall in no manner affect the right of such party at a later time to enforce the same. No waiver by any party of the breach of any term, covenant, representation or warranty contained in this Agreement as a condition to such party’s obligations hereunder shall release or affect any liability resulting from such breach, and no waiver of any nature, whether by conduct or otherwise, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such condition or of any breach of any other term, covenant, representation or warranty of this Agreement.

 

Article X

Miscellaneous Provisions

 

	
10.1

	
Each of the parties hereto shall bear its own expenses in connection herewith.

 

10.2     This Agreement may be amended, modified, superseded or terminated, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, but only by a written instrument executed by the party waiving compliance. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right of such party at a later time to enforce the same.

 

10.3     Any notice or other communication required which may be given hereunder shall be in writing and either delivered personally or be mailed, certified or registered mail, postage prepaid, and shall deemed given when so delivered personally, or 

if mailed, two days after the date of mailing as follows:

 

	
If Purchaser, to:

Daniel J. Prins

103 Brook Hollow Ct

Cary, NC 27513

 

If Seller, to:

Ralph H. Jordan

c/o Goldtech Mining Corporation

4904 Waters Edge Drive, Suite 160

Raleigh, NC 27513

 

The parties may change the persons and addresses to which the notices or other communications are to be sent to it by giving written notice of any such change in the manner provided herein for giving notice.

 

10.4     This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. No assignment of any rights or delegation of any obligations provided for herein may be made by any party without the express written consent of the other party.

 

 

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Sales Agreement

 

 

10.5     This Agreement contains the entire Agreement between the parties with respect to the subject matter hereof.

 

10.6     All Exhibits annexed hereto and the documents and instruments referred to herein or required to be delivered simultaneously herewith or at the Closing are expressly made a part of this Agreement as fully as though completely set forth herein, and all references to this Agreement herein or in any such Exhibits, documents or instruments shall be deemed to refer to and include all such Exhibits, documents and instruments. Any execution of this Agreement is subject to the receipt of current and complete exhibits.

 

10.7     This Agreement shall be governed by, and construed in accordance with the laws of the State of North Carolina.

 

10.8     This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but which together shall constitute one and the same instrument.

 

10.9     The section headings contained in this Agreement are inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement.

 

	
WITNESS the execution of this Agreement as of the date first above written.

 

SELLER

Goldtech Mining Corporation

 

	
/s/ Ralph Jordan

By: _________________________

 

COMPANY

Envyr Corporation

 

	
/s/ Ralph Jordan

By: _________________________

 

 

PURCHASER

Daniel J. Prins

 

	
/s/ Daniel J. Prins

_____________________________

 

Page 10 of 14

 

Sales Agreement

 

 

Exhibit 2.3

Balance Sheet and Notes

As of September 30, 2004

 

	
            ASSETS
 	
             
 
	
            Current Assets
 	
             
 
	
            Savings Account                                                                                                                                           
 	
            $49.46
 
	
            Checking Account                                                                                
 	
            32,768.22
 
	
            Accounts Receivable                 
 	
            26,502.18
 
	
            Notes Receivable                                                                                     
 	
            155,978.67
 
	
            Inventory Asset                                                                                                                                                 
 	
            4,559.00
 
	
            Total Current Assets                                                                   
 	
            219,857.53
 
	
             
 	
             
 
	
            Fixed Assets
 	
             
 
	
            Leasehold Improvements – Acc Amort                                 
 	
            -3,975.05
 
	
            Machinery and Equipment – Acc Dep                                        
 	
            -22,208.76
 
	
            Computer Software – Acc Dep                              
 	
            -173,166.75
 
	
            Computer Hardware – Acc Dep                        
 	
            -199,678.75
 
	
            Furniture and Fixtures – Acc Dep                  
 	
            -51,007.04
 
	
            Leasehold Improvements                                        
 	
            3,975.05
 
	
            Machinery and Equipment                                  
 	
            22,208.76
 
	
            Computer Software                                                                        
 	
            173,493.49
 
	
            Computer Hardware                  
 	
            200,397.68
 
	
            Furniture and Fixtures            
 	
            51,007.04
 
	
            Total Fixed Assets                                                                                                                               
 	
            1,045.67
 
	
             
 	
             
 
	
            TOTAL ASSETS                                                                                                                                                                                                                                  
 	
            220,903.20
 
	
             
 	
             
 
	
            LIABILITIES & EQUITY
 	
             
 
	
            Liabilities
 	
             
 
	
            Accrued Expenses                                                                               
 	
            4,193.51
 
	
            Payroll Liabilities                                                                                                                                          
 	
            1,192.00
 
	
            Total Liabilities                                                                                                                                                     
 	
            5,385.51
 
	
             
 	
             
 
	
            Equity
 	
             
 
	
            Paid in Capital                                                        
 	
            0.00
 
	
            Capital Stock                                                                                                                                                             
 	
            1.00
 
	
            Opening Bal Equity                                                                           
 	
            215,516.69
 
	
            Retained Earnings                                                                                    
 	
            0.00
 
	
            Net Income                                                                                                                                                                        
 	
            0.00
 
	
            Total Equity                                                                                                                                                                                                                       
 	
            215,517.69
 
	
             
 	
             
 
	
            TOTAL LIABILITIES & EQUITY              
 	
            220,903.20
 

 

 

 

 

 

 

 

 

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Sales Agreement

 

 

NOTES to Balance Sheet:

	
1.

	
Goldtech Mining Corporation (a Washington Corporation) has paid $150,000 of the $200,000 that is due, leaving a balance of $50,000. 

	
2.

	
The balance due from Goldtech Mining Corporation (Washington) has not been accrued. Payments against that balance will be entered as they are received.

 

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Sales Agreement

 

 

Exhibit 2.7

Employment Agreements

 

There are no employment agreements in force as of the Closing date.

 

There are currently four employees:

 

	
1.

	
Gary Gurkin

 

	
2.

	
Ralph H. Jordan, IV

 

	
3.

	
Rebecca G. Jordan

 

	
4.

	
Daniel J. Prins

 

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Sales Agreement

 

 

Exhibit 2.14

Asset Assignment Agreement

 

 

 

Page 14 of 14EX-10.1

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”), dated April 26, 2005, is by
and between Insight North America, Inc., an Arizona corporation (“Company”), and Dino D. Farfante
(“Executive”).

RECITALS

A. Executive is currently employed by Company in the position of President.

	 	B.	 	Executive and Insight Direct Worldwide, Inc., an affiliate of Company, entered
into an employment agreement on November 23, 2004, which agreement was assigned to
Company with the consent of Executive, and amended in the course of such assignment, on
February 23, 2005 (the “Employment Agreement”).

	 	C.	 	Company and Executive mutually desire to modify the current employment
relationship and provide for an orderly termination of Executive’s employment, all on
terms staisfactory to both Company and Executive, as set forth below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

1. Employment Relationship. Executive will continue to serve as President of Company through
May 1, 2005 (the “Notice Date”). With the intent of amending Sections 1 and 2 of the Employment
Agreement, at May 1, 2005, and without the requirement of any further action by Company or
Executive, Executive will cease serving as President of Company and as an officer of any affiliate
of Company and hereby resigns as a Director of any entity controlled by or under common control
with Company. Executive will continue as an employee of Company, reporting directly to the Chief
Executive Officer of Insight Enterprises, Inc. (“IEI”), for a period of ninety days from the date
hereof ending July 25, 2005 (the “Date of Termination”). From and after the Date of Termination,
Executive’s employment by the Company shall end for all purposes, and Executive shall have no
further rights or duties as an employee of Company or any of its affiliates. The period from the
Notice Date through the Date of Termination may be referred to herein as the “Notice Period.”
During the Notice Period, Executive will have access to Company premises, systems or network only
by invitation (other than a Company voicemail box), will not have any duties other than as
requested by the Chief Executive Officer of IEI, will not have any Company title and will not have
any authority to act for or on behalf of the Company or to bind the Company in any way (unless
pursuant to an express written delegation of authority from the Chief Executive Officer of IEI).
Company and Executive agree that this Amendment, even if not executed and delivered, also serves as
notice pursuant to Section 6(b) of the Employment Agreement and that, if executed and delivered,
the compensation and benefits described in this Amendment will be in lieu of and not in addition to
any compensation and benefits which might be contemplated by Section 6(b) of the Employment
Agreement.

2. Compensation.

a. First and Second Calendar Quarter 2005. During the Notice Period, Executive shall be
entitled to receive his base salary and 100% of incentive compensation earned with the respect to
the first calendar quarter of 2005 pursuant to that certain 2005 Compensation Plan for the
President of Insight North America, Inc. (the “2005 Compensation Plan”), each to be paid according
to customary practices of the Company. Executive shall also be entitled to 100% of the incentive
compensation, to the extent earned, under the 2005 Compensation Plan with the respect to the second
calendar quarter of 2005, also to be paid in accordance with the customary practices of the
Company. Executive shall not be entitled to any incentive compensation with respect to the third
or fourth calendar quarters of 2005 (or for the year ending December 31, 2005 as a whole) under the
2005 Compensation Plan or otherwise.

b. Continued Compensation. Immediately following the expiration of the Notice Period, Company
will pay Executive, in one lump sum payment, continued compensation required by Section 6(c) of the
Employment Agreement, calculated as twice Executive’s current rate of pay less salary paid to
Executive during the Notice Period, and any accrued and untaken vacation pay.

c. Incentive Compensation. Immediately following the expiration of the Notice Period, Company
will pay Executive, in one lump sum payment, incentive compensation required by Section 6(d) of the
Employment Agreement, calculated as twice Executive’s bonus (as the bonus is disclosed in the IEI
Proxy Statement for the 2005 Annual Meeting of Stockholders) for the year ended December 31, 2003
or 2004, whichever is larger.

d. Deductions. Company shall deduct all required and authorized deductions from payments made
pursuant to this Amendment.

3. Benefits. During the Notice Period, Executive’s eligibility to participate in benefit
plans offered by Company shall continue to be governed by Section 6(e) of the Employment Agreement,
but, as an amendment to Sections 3(c) and 3(d) of the Employment Agreement, Company and Executive
agree that Executive will not participate in any new or additional grants of stock options,
restricted stock, restricted stock units or other equity-based plans established by Company or IEI
or in any other incentive compensation or benefit plan other than as described in this Amendment.
For the purpose of clarity, Company and Executive agree that, with respect to options to acquire
shares of the common stock of Insight Enterprises, Inc. granted prior to the date hereof, such
options shall continue to vest through the Date of Termination and will be governed by the terms of
the plan or plans pursuant to which the options were granted, except that Executive shall have
ninety-five (95) days following the Date of Termination to exercise any vested options to acquire
shares of the common stock of IEI. Beginning as of the Date of Termination, Executive and each
eligible dependent who constitutes a qualified beneficiary, as defined in Section 4980B(g)(1) of
the Internal Revenue Code of 1986, as amended, will be eligible to continue benefits coverage under
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for the time
period prescribed pursuant to COBRA. Executive acknowledges that Company has provided him with
information concerning his obligations and time requirements to secure COBRA benefits, and Company
agrees to provide Executive with any changes made to those obligations and requirements prior to
the Date of Termination.

4. Restrictive Covenants. Section 10 of the Employment Agreement is hereby amended by
deleting subsection (b) and inserting the following therefor:

(b) Non-Solicitation. Executive recognizes that Company’s customers are
valuable and proprietary resources of Company. Accordingly, Executive agrees that
for a period of one (1) year following his termination of employment, and only so
long as Company is continuously not in default of its obligations to provide
payments or employment-type benefits to Executive hereunder or under any other
agreement, covenant, or obligation, he will not directly or indirectly, through his
own efforts or through the efforts of another person or entity (i) solicit business
in the Restricted Territory for or in connection with any Competing Business from
any individual or entity which obtained products or services from Company and with
whom Executive has had any contact directly or indirectly at any time during
Executive’s employment with Company, (ii) solicit business for or in connection with
a Competing Business from any individual or which may have been solicited by
Executive on behalf of Company or (iii) solicit, hire or engage employees of
Company.

5. Release and Covenant Not to Sue.

a. Executive understands and agrees that with respect to this Section 5 the term “Company”
refers to Company and its parents, subsidiaries and affiliates, and the officers, directors,
shareholders, agents, predecessors, successors, assigns, and current and past employees and
representatives of each and all of the foregoing. Executive, for Executive and, as applicable,
Executive’s respective agents, attorneys, successors, and assigns, hereby fully, forever,
irrevocably, and unconditionally releases Company from any and all claims, charges, complaints,
liabilities, and obligations of any nature whatsoever, which Executive may have against Company,
whether now known or unknown, and whether asserted or unasserted, arising from any event or
omission occurring prior to execution of this Agreement. Without limiting the foregoing, this
release includes any and all claims arising out of or which could arise out of the employment
relationship between Executive and Company and the termination of that employment, including but
not limited to: (i) any and all claims under Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act, Section 1981 of the Civil Rights Act of 1866, the Age
Discrimination in Employment Act, the Equal Pay Act, the Family Medical Leave Act, ERISA, COBRA,
the Worker Adjustment and Retraining Notification Act, the Arizona Civil Rights Act, state and
local civil rights laws, Arizona wage payment laws and any similar laws in other states; (ii) any
and all Executive Orders (governing fair employment practices) which may be applicable to Company;
and (iii) any other provision or theory of law. This release may be pled as a complete bar and
defense to any claim brought by Executive with respect to the matters released in this Agreement.
This release does not waive claims that may arise after the date this Agreement is signed; however,
Executive agrees that by signing, delivering and not revoking this Agreement and by accepting the
compensation and benefits stated in Sections 2 and 3, above, respectively, Executive will be deemed
to have repeated and given the foregoing releases at the Date of Termination.

b. Executive acknowledges and agrees that the consideration Executive is receiving under this
Amendment is sufficient consideration to support the release of all entities identified in this
Section 5, and that there is consideration given in addition to anything of value to which
Executive is already entitled.

c. Executive acknowledges and agrees that Executive is not aware of any facts or circumstances
that could be the basis for a valid claim or charge of discrimination or harassment against
Company. Executive represents and warrants to Company that Executive has not filed, or caused to
be filed, any claim or charge with any adjudicative body, regulatory body, or agency arising out of
his employment. Executive agrees that by signing, delivering and not revoking this Amendment and
by accepting the compensation and benefits stated in Sections 2 and 3, above, respectively,
Executive will be deemed to have repeated and made the foregoing statements, representations,
warranties and agreements at the Date of Termination.

6. Review. Executive has been advised that he has up to twenty-one (21) days from the date he
is presented with this Amendment to consider this Amendment. If Executive executes this Amendment
before the expiration of twenty-one (21) days, he acknowledges that he has done so for the purpose
of expediting the resolution of this matter and that he has expressly waived his right to take
twenty-one (21) days to consider this Amendment. To accept the offer in this Amendment, Executive
must sign and return the Amendment to the Company, within the 21-day period, at the following
address: Insight Enterprises, Inc., 1305 West Auto Drive, Tempe, Arizona 85284, Attention: Richard
A. Fennessy, Chief Executive Officer.

7. Revocation. Executive may revoke this Amendment for a period of seven (7) days after he
signs it. Executive agrees that if he elects to revoke this Amendment, he will notify the Chief
Executive Officer of IEI (at the above address) in writing on or before the expiration of the
revocation period. Receipt by IEI on behalf of Company of proper and timely notice of revocation
from Executive cancels and voids this Amendment. Provided that Executive does not provide a notice
of revocation, this Amendment will become effective upon expiration of the revocation period.

8. Testimony; Assistance. If Executive has knowledge of or is alleged to have knowledge of
any matters which are the subject of any pending, threatened or future litigation involving IEI,
Company or any of its affiliates, Executive will make himself available to testify if and as
necessary. Executive will also make himself available to the attorneys representing IEI or
Company, as applicable, in connection with any such litigation or dispute for such purposes as they
may deem necessary or appropriate, including but not limited to the review of documents, discussion
of the case and preparation for any legal proceedings. This Amendment is not intended to and shall
not be construed so as to in any way limit or affect the testimony which Executive gives in any
such proceedings. Further, it is understood and agreed that Executive will at all times testify
fully, truthfully and accurately, whether in deposition, hearing, trial or otherwise.

9. Dispute Resolution. Company and Executive agree that any and all disputes arising under,
pertaining to or touching upon this Agreement, or the statutory rights or obligations of either
party hereto, shall, if not settled by negotiation, be subject to the dispute resolution procedures
set forth in the Employment Agreement. This Section 9 shall survive any termination of this
Amendment or the Employment Agreement or both.

10. Governing Law. This Amendment shall be governed by and interpreted in accordance with the
laws of the State of Arizona.

11. Defined Terms. Capitalized terms used and not defined in this Amendment shall have the
meanings given to them in the Employment Agreement.

12. Section 16 Reporting. Executive represents and warrants to Company that all reportable
transactions under Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereto, through the date hereof have been reported and agrees to notify
the Corporate Counsel of IEI of any reportable transactions through January 31, 2006.

13. Severability. If any one or more of the provisions or parts of a provision contained in
this Amendment shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity or unenforceability shall not affect any other provision or part of a provision of
this Amendment, but this Amendment shall be reformed and construed as if such invalid, illegal or
unenforceable provision or part of a provision had never been contained herein and such provisions
or part thereof shall be reformed so that it would be valid, legal and enforceable to the maximum
extent permitted by law. Any such reformation shall be read as narrowly as possible to give the
maximum effect to the mutual intentions of Executive and Company.

Insight North America, Inc.,

an Arizona corporation

	 	 	 
	By: /s/ Richard A. Fennessy

	 	/s/ Dino Farfante

Dino Farfante

Name: Richard A. Fennessy

Title: Chief Executive Officer

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