Document:

ex10p41.htm

    
      

    

     

    Exhibit 10.41

    

    AMENDMENT
OF

    ANGELICA
CORPORATION

    EMPLOYMENT
AGREEMENT

    

    Steven
L. Frey

    

    

    This
Amendment of the Angelica Corporation Employment Agreement with Steven L. Frey
(the “Agreement”) has been entered into this 17th day of December, 2007, by and
between Angelica Corporation, a Missouri corporation (the “Company”), and Steven
L. Frey, an individual (the “Executive”).

    

    WHEREAS, the Company and the
Executive previously entered into that certain agreement dated as of September
9, 2004, regarding the employment relationship between the Company and the
Executive (the “Original Agreement”); and

    

    WHEREAS, the Company and the
Executive desire to amend the Original Agreement as of the date hereof to
conform to the provisions of the regulations under Section 409A of the Internal
Revenue Code;

    

    NOW THEREFORE, in
consideration of the mutual promises herein contained, the Company and the
Executive hereby amend the Original Agreement as follows:

    

    1.           Section
1.1(i) is amended to read in its entirety as follows:

    

    1.1(i)
“Date of Termination”
has the meaning set forth in Section 3.8 of this Agreement.  In
all cases, a “Date of Termination” shall only occur upon separation from service
from the Company and all of its affiliates, as defined in Treasury regulations
under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
(generally, separation from the 50% controlled group that includes the
Company).

    

    2.           Section
2.4(f) is amended to add the following sentence to the end of said
Section:

    

    Expense
reimbursements described in this Section 2.4(f) will be made no later than the
end of the calendar year following the calendar year in which the expenses are
incurred.

    

    3.           Section
3.4 is amended to read in its entirety as follows:

    

    3.4 Good Reason.  The
Executive may terminate his employment with the Company during the Employment
Period for “Good Reason,” which shall mean the occurrence of one or more of the
following without the consent of the Executive:

    

    3.4(a) a
material reduction in the Executive’s Annual Base Salary;

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    

    3.4(b) a
material reduction in the Executive’s authority, duties or
responsibilities;

    

    3.4(c) a
material reduction in the budget over which the Executive retains
authority;

    

    3.4(d) a
material change in the geographic location at which the Executive must perform
the services under this Agreement;

    

    3.4(e)
any other action or inaction that constitutes a material breach by the Company
of this Agreement.

    

    Any
termination of the Executive’s employment based upon a good faith determination
of “Good Reason” made by the Executive shall be subject to a delivery of a
Notice of Termination by the Executive to the Company in the manner prescribed
in Section 3.7 within ninety (90) days of the first occurrence of an event that
would constitute Good Reason and subject further to the ability of the Company
to remedy the condition within thirty (30) days of receipt.

    

    4.           Section
3.8 is amended to read in its entirety as follows:

    

    3.8 Date of Termination. “Date of
Termination” means (i) if the Executive’s employment is terminated by the
Company for Cause or any other reason, the date of receipt by the Executive of
the Notice of Termination or any later date specified therein, as the case may
be, (ii) if the Executive’s employment is terminated by reason of death or
Disability, the date of death of the Executive or the Disability Effective Date,
as the case may be, or (iii) if the Executive’s employment is terminated by the
Executive for Good Reason, the date specified in the Notice of Termination which
date shall not be more than two (2) years after the initial occurrence of the
Good Reason event as specified in Section 3.4 or less than thirty (30) days
after the receipt of such notice; or (iv) if the Executive’s employment is
terminated by the Executive voluntarily (either prior to or after a Change in
Control Date), the date that is specified in the Notice of Termination that is
at least six months after the receipt of the Notice of Termination by the
Company unless the Company decides to waive or shorten the notice period in its
sole discretion. If within thirty (30) days after any Notice of Termination is
given, the party receiving such Notice of Termination notifies the other party
that a dispute exists concerning the termination, the Date of Termination shall
be the date on which the dispute is finally determined, either by mutual written
agreement of the parties, or by a final judgment, order or decree of a court of
competent jurisdiction (the time for appeal therefrom having expired and no
appeal having been perfected).

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    5.           Sections
4.1(a) is amended to read in its entirety as follows:

    

    4.1(a)
Accrued Obligations.
Within thirty (30) days after the Date of Termination, the Company shall
pay to the Executive the sum of (i) the Executive’s Annual Base Salary through
the Date of Termination to the extent not previously paid, and (ii) any accrued
vacation pay; in each case to the extent not previously paid (the “Accrued
Obligations”).  In addition, Executive shall be entitled to the
benefits, if any, under any benefit plan, program or arrangement in which the
Executive is a participant, in the time and manner provided under the applicable
plan, program or arrangement.

    

    6.           Section
4.1 (b) is amended to read in its entirety as follows:

    

    4.1(b)
Severance
Payment. Within thirty (30) days after the Date of Termination, the
Company shall pay to the Executive as severance pay in a lump sum, in cash, an
amount equal to one times the Executive’s then-current Annual Base
Salary.

    

    7.           Section
4.2 is amended to read in its entirety as follows:

    

    4.2 Benefits Upon Termination without
Cause or for Good Reason in Connection with a Change in
Control.  If (a) a Change in Control (as defined in Section
1.1(f)) occurs during the Employment Period and within two (2) years after the
Change in Control Date (as defined in Section 1.1(g)) (i) the Company shall
terminate the Executive’s employment without Cause, or (ii) the Executive shall
terminate employment with the Company for Good Reason, or, alternatively, (b) if
one of the above-described terminations of employment occurs within the
six-month period prior to the earlier of (i) a change of control that qualified
under Code Section 409A (a “409A Change in Control”) or (ii) the execution of a
definitive agreement or contract that eventually results in a 409A Change in
Control, then the Executive shall become entitled upon the date of the 409A
Change in Control to receive the payment of the benefits as provided below as of
either (y) the Date of Termination, in the case where the sequence of the
requisite events is as set forth in subsection (a) above or (z) the date of the
409A Change in Control, in the case where the sequence of the requisite events
occurred as set forth in subsection (b) above (the relevant date for purposes of
entitlement to the benefits as set forth in this Section 4.2 is hereinafter
referred to as the “Entitlement Date”).

    

    For
purposes of this Agreement, a “409A Change in Control” shall
mean:  (i) the acquisition by one person, or more than one person
acting as a group, of ownership of stock of the Company that, together with
stock held by such person or group, constitutes more than 50% of the total fair
market value or total voting power of the stock of the Company; (ii) the
acquisition by one person, or more than one person acting as a group, of
ownership of stock of the Company, that

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    
      	 	
              together with stock
      of the Company acquired during the twelve-month period ending on the date
      of the most recent acquisition by such person or group, constitutes 30% or
      more of the total voting power of the stock of the Company; (iii) a
      majority of the members of the Company’s board of directors is replaced
      during any twelve-month period by directors whose appointment or election
      is not endorsed by a majority of the members of the Company’s board of
      directors before the date of the appointment or election; (iv) one person,
      or more than one person acting as a group, acquires (or has acquired
      during the twelve-month period ending on the date of the most recent
      acquisition by such person or group) assets from the Company that have a
      total gross fair market value (determined without regard to any
      liabilities associated with such assets) equal to or more than 40% of the
      total gross fair market value of all of the assets of the Company
      immediately before such acquisition or acquisitions.  Persons
      will not be considered to be acting as a group solely because they
      purchase or own stock of the same corporation at the same time, or as a
      result of the same public offering.  However, persons will be
      considered to be acting as a group if they are owners of a corporation
      that enters into a merger, consolidation, purchase or acquisition of
      stock, or similar business transaction with the Company.  This
      definition of 409A Change in Control shall be interpreted in accordance
      with, and in a manner that will bring the definition into compliance with,
      the regulations under Code Section 409A.

            	 

    

     

    8.           Section
4.2(d) is amended to read in its entirety as follows:

    

    4.2(d)
Medical and Health Benefit
Continuation. The Executive will be entitled to a cash payment by the
Company to the Executive to enable the Executive to purchase two (2) years of
medical and health benefits continuation coverage for the Executive and/or the
Executive’s eligible family members who are receiving such coverage on the Date
of Termination at least equal to those which would have been provided to them in
accordance with the plans, programs, practices and policies described in Section
2.4(e) if the Executive’s employment had not been terminated; provided, however,
that if the Executive becomes reemployed with another employer and is eligible
to receive medical or health benefits under another employer-provided plan, the
medical and health benefits described herein shall be secondary to those
provided under such other plan during such applicable period of
eligibility.  The Company shall, on a monthly basis commencing in the
month immediately subsequent to the month in which the Entitlement Date occurs
and ending with the last month for which the Executive is entitled to the
continuation of such medical and health benefits, pay to the Executive an amount
equal to the COBRA premium applicable to such coverage plus a tax gross-up
amount and shall remit the net after-tax amount to the medical plan on the
Executive’s behalf.

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    9.           Section
4.3 is amended to add the following to the end of the last sentence of said
Section:

    

    , in the
time and manner provided in each such plan, policy or arrangement.

    

    10.         Section
4.4 is amended to add the following to the end of the last sentence of said
Section:

    

    , in the
time and manner provided in each such plan, policy or arrangement.

    

    11.        
Section 4.7 is amended to read in its entirety as follows:

    

    4.7 Full Settlement. The
parties agree that the Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder are intended
to be in full settlement of all claims that the Executive may have against the
Company with respect to the termination of the Executive’s employment with the
Company and the Executive shall be required to execute and deliver an agreement
to this effect prior to receipt of any payments under this
Agreement.  If such agreement is not signed and delivered to the
Company within sixty (60) days of Executive’s Date of Termination, the Company’s
obligation to make the payments provided for in this Agreement shall
terminate.  The payments to be made by the Company or any other
obligation that the Company is required to perform pursuant to this Agreement
shall not be affected by any set-off, counterclaim, recoupment, defense or other
claim, right or action which the Company may have against the Executive or
others. In no event shall the Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement and, except as provided
in Section 4.2(d), such amounts shall not be reduced whether or not the
Executive obtains other employment.  To the extent the Executive
prevails in any contest with respect to the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereof (including as a result of any contest by the Executive regarding the
amount of any payment pursuant to this Agreement), the Company agrees to pay
promptly, to the full extent permitted by law, all legal fees and expenses which
the Executive may reasonably incur as a result of any such contest, plus in each
case interest on any delayed payment at the applicable Federal rate provided for
in Code Section 7872(f)(2)(A).  Any such payment shall be made not
later than the end of the calendar year following the calendar year in which the
Executive incurred such expense.

    

    12.         Section
4.8 is amended to read in its entirety as follows:

    

    4.8 Resolution of Disputes. If
there shall be any dispute between the Company and the Executive (i) as to
whether any termination of the Executive’s employment was for Cause, or (ii) as
to whether any termination of the Executive’s employment for Good Reason was
made in good faith, then, unless

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                      
                  and
      until there is a final, non-appealable judgment by a court of competent
      jurisdiction declaring that such termination was for Cause or that the
      determination by the Executive of the existence of Good Reason was not
      made in good faith, the Company shall pay all amounts, and provide all
      benefits, to the Executive and/or the Executive’s family or other
      beneficiaries, as the case may be, that the Company would be required to
      pay or provide pursuant to Section 4.1 or 4.2 as though such termination
      was without Cause or for Good Reason, as the case may be; provided,
      however, that the Company shall not be required to pay any disputed
      amounts pursuant to this Section 4.8 except upon receipt, within sixty
      (60) days of the date such dispute arises, of an undertaking by or on
      behalf of the Executive to repay all such amounts to which the Executive
      is ultimately adjudged by such court not to be
      entitled.

                

              	 

      

    

    

    13.                      A
new Section 4.9 is added to the Agreement as follows:

    

    4.9 Specified Employee Six Month
Deferral.  Notwithstanding anything to the contrary in this
Section 4, if the Executive is a “Specified Employee” on the Date of
Termination, the Executive may not receive a payment of “nonqualified deferred
compensation” for which the “payment event” is “separation from service,” as
defined in Code Section 409A and the regulations thereunder, until at least six
(6) months after a Date of Termination.  Any payment of nonqualified
deferred compensation otherwise due in such six (6) month period shall be
suspended and become payable at the end of such six (6) month
period.

    

    A
“Specified Employee” means a specified employee as defined in Treas. Reg.
§1.409A-1(i) (generally, officers earning more than $140,000 per year, as
indexed for inflation, who are among the fifty (50) highest paid
employees).

    

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    IN WITNESS WHEREOF, the
Executive and, the Company, pursuant to the authorization from its Board, have
caused this Agreement to be executed in its name on its behalf, all as of the
day and year first above written.

    

    “Executive”

    

    

    /s/ Steven L.
Frey                                                              

    STEVEN L.
FREY

    

    

    

    

    “Company”

    

    ANGELICA
CORPORATION

    

    

    

    By  /s/ Stephen M.
O’Hara                                                

    Name:
Stephen M.
O’Hara                                                

    Title:   CEO                                                                         

    

     

     

    7proginet8k041008ex10-1.htm

    
      

      

    

    
      Exhibit
10.1

      

      March 12,
2008

      

      

      

      Sandison
Weil

      

      

      Dear
Sandy,

      

           I
am pleased to confirm the offer extended to you to join Proginet Corporation as
its Executive Vice President of Sales and Marketing, reporting to
me.

      

      The
proposed terms of employment with Proginet Corporation are as
follows:

      

      

      I. Salary and
Bonus

      

           Your
starting salary will be $12,500 per semi-monthly pay period, which is equivalent
to $300,000 on an annualized basis. In lieu of the variable compensation
component during fiscal year 2008 (ending July 31, 2008), you will also receive
a monthly bonus payment of $5,000 each month (prorated for any partial
month).

      

           In
addition, beginning on August 1, 2008, you will be eligible for a quarterly
performance bonus with an annual target amount of $100,000. The bonus amount to
be paid will be determined based upon the achievement of agreed upon objectives,
established by the Board of Directors, as part of the annual business plan
process. These objectives will be weighted so that eighty percent of the target
amount is based on your performance under your Revenue Plan and twenty percent
is based on the achievement of specific objectives. Also, effective August 1,
2008 you will receive a recoverable draw of $5,000 per month to be paid
semi-monthly in accordance with normal payroll processing. The draw represents
an advance to be offset against bonuses earned. Draw paid in advance and not
earned must be returned to Proginet Corporation.

      

           All
salary, bonus and draw payments are subject to normal withholdings.

      

      

      II. Stock
Options

      

           As
part of your compensation package, subject to the approval of the Board of
Directors, you will be granted stock options to purchase 500,000 shares of
Proginet Corporation common stock at a grant price, (the “Initial Grant”), at
the closing price on the OTC BB on April 8, 2008, in accordance with the
following vesting schedules:

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        Schedule
A:

        

        
          	
                  Vesting
      Date

                	
                  Number
      of Options

                
	
                  Date
      of  Initial Grant

                	
                  100,000

                
	
                  One
      Yr from Date of Initial Grant

                	
                  100,000

                
	
                  Two
      Yrs From Date of Initial Grant

                	
                  100,000

                
	
                  Total
      Stock Options

                	
                  300,000

                

        

         

         

      

      
        Schedule
B:

        

        
          	
                  Vesting
      Date

                	
                  Number
      of Options

                
	
                  7/31/2009,
      if performance criteria have been met

                	
                  50,000

                
	
                  7/31/2010,
      if performance criteria have been met

                	
                  50,000

                
	
                  7/31/2011,
      if performance criteria have been met

                	
                  50,000

                
	
                  7/31/2012,
      if performance criteria have been met

                	
                  50,000

                
	
                  Total
      Stock Options

                	
                  200,000

                

        

        

      

      

       Additionally,
on October 31, 2008, you will be granted stock options to purchase 100,000
shares of Proginet Corporation common stock at a grant price based on the
closing price on the OTC BB as of October 31, 2008.  Such options will
vest two years from the grant date based upon meeting performance criteria
established by the Board of Directors for an aggregate two year
program.

      

      

      III.
Benefits
Package

      

           Beginning
on the first day of the month following three months of continuous employment
from your start date, you are eligible to participate in a comprehensive
benefits program including medical, dental, life and disability
insurance.

      

           We
have also confirmed your continuation of medical insurance coverage as long as
you have had prior medical coverage in effect 63 days or less from joining
Proginet Corporation.  Such coverage must have been fully paid by
either you or your former employer.

      

           You
will have the opportunity to select from various supplemental medical programs
offered through AFLAC. Furthermore, you will also be eligible to participate in
a 401(k) Plan and Pre-Tax Flexible Spending Plan. Currently, Proginet matches
50% of the first 6% contributed by the employee to its 401(k) Plan, subject to
IRS limitations.

      

      IV. Compensated
Absences

      

           From
your date of hire through December 31, 2008, you will receive 2 (two) days of
vacation per month. Thereafter, you will receive 20 days of paid vacation on an
annual basis. You are also entitled to personal time off and sick leave in
accordance with Proginet Corporation Human Resource Employee Manual and
Procedure Guide.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      V. Other Employment Related
Documents

      

           As
a public company, all employees are also required to sign Proginet’s
Confidentiality and Non-Competition Agreement, Code of Business Conduct and
Ethics Agreement and Insider Trading Policy Agreement upon joining
Proginet.

      

      In
addition, because you will be a Section 16 Officer, Proginet Corporation
requests that, within (1) business day of signing this letter, you

      

      
        	
                 
      

              	
                a.

              	
                sign
      Proginet Corporation’s standard form power of attorney to facilitate the
      filing of Forms 3, 4 and 5 by Proginet Corporation on your behalf,
      and

              

      

      
        	
                 
      

              	
                b.

              	
                either
      provide your existing SEC Central Index Key (CIK) information or sign a
      completed Form ID to obtain a CIK.

              

      

      

      

      VI. Change of Ownership
Control

      

           If
a Change of Ownership Control occurs during your tenure at Proginet Corporation,
all options previously granted shall vest immediately.

      

      VII.
Termination

      

           If,
in the event:

      
 

      
        
          	
                   
      

                	
                  a.

                	
                  Proginet
      Corporation terminates your employment for any reason other than Cause,
      your death, or Disability, or

                

        

        
          	
                   
      

                	
                  b.

                	
                  you
      terminate your employment following a Constructive
      Termination,

                

        

        

        then
subject to your delivery of a signed release of claims in a form reasonably
satisfactory to Proginet Corporation, you will be entitled to:

        

        
          	
                   
      

                	
                  i.

                	
                  Continuation
      for a period of six months of your base salary, paid in accordance with
      Proginet Corporation's payroll
practices,

                

        

        
          	
                	
                  ii.

                	
                  Continuation
      for a period of three months of the vesting of your then outstanding
      Proginet Corporation stock options,
and

                

        

        
          	
                   
      

                	
                  iii.

                	
                  Continuation
      of your then existing and subscribed to benefits for six
      months.

                

        

         

      

           In
the event of termination for Cause, you will not be entitled to any such
payments, salary, bonus, or benefits.

      

      

      VIII.
At-Will
Employment

      

            If
you choose to accept this offer, please understand your employment is
voluntarily entered into and is for no specific period. As a result, you are
free to resign at any time, for any reason, or for no reason. Similarly,
Proginet Corporation is free to conclude its at-will employment relationship
with you at any time, with or without cause.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

           Sandy,
we trust that you agree with the Proginet Board of Directors, that you have a
great contribution to make to Proginet Corporation. We are confident that you
will find working at Proginet a rewarding experience. We look forward to a
favorable reply and the opportunity of working with you to create a successful
company.

      

          You
will also find enclosed, the Executive Vice President of Sales and Marketing
Corporate Package. This document is to serve as a broader position overview for
your review.

      

           To
indicate your acceptance of this offer of employment, please sign and date this
confirmation form and return it to Proginet Corporation. This letter, along with
the Proginet Corporation Human Resource Employee Manual and Procedure Guide and
other policy documents applicable to Proginet Corporation employees and the Plan
Documents governing the health and welfare benefit plans, all which you will
receive shortly, sets forth the terms of your employment with Proginet
Corporation and supersedes any prior representations or agreements, whether
written or oral.

      

           Importantly,
your employment with Proginet Corporation is contingent on a background check.
The terms and conditions in the Proginet Corporation Human Resource Employee
Manual and Procedure Guide and the Plan Documents are subject to change at any
time by Proginet Corporation and/or Board of Directors, subject to requirements
of federal, state or local law. This letter may only be modified by a written
agreement signed by you and the President and CEO of Proginet
Corporation.

      

      

      This
offer will expire at noon Eastern Daylight Time on April 4, 2008.

      

      

      

      

      ________________________________________________

      Kevin M.
Kelly

      President
& CEO

      

      Please
indicate acceptance of this offer by returning this form with your
signature.

      

      I agree
to and accept the enclosed offer of employment with Proginet Corporation. I
agree that my start date will be on or about April 7, 2008.

      

      

      

      
        	 
      	 
      	 
      
	
                Sandison
      Weil

              	 
      	
                Date
      of Acceptance

              
	 
      	 
      	 
      

      

      

      

      

      Encl.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Certain
Definitions

      

      For
purposes of this letter, we have identified certain definitions for your
review:

      

      "Cause"
means only: the commission of a felony by you intended to result in your
substantial personal enrichment at Proginet Corporation’s expense, conviction of
a crime involving moral turpitude, or willful failure to perform your duties to
Proginet Corporation, which failure is deliberate, results in injury to Proginet
Corporation, and continues for more than 15 days after written notice is given
to you. For purposes of this definition, no act or omission is considered to
have been "willful" unless it was not in good faith and you had knowledge at the
time that the act or omission was not in the best interests of Proginet
Corporation.

      

      "Change
of Ownership Control" means any sale of all or substantially all of Proginet
Corporation’s assets, or any merger, consolidation, or stock sales that results
in the holders of Proginet Corporation’s capital stock immediately prior to such
transaction owning less than 50% of the voting power of Proginet Corporation’s
capital stock immediately after such transaction.

      

      "Constructive
Termination" means a material diminution of duties, a change in title or
reporting relationship, a change greater than 25 miles in the location of your
designated work place for Proginet Corporation, a reduction in base salary, or
the failure of any successor to the assets or business through any Change of
Ownership Control to fully assume all obligations of Proginet Corporation under
this agreement.

      

      "Disability"
means an illness, injury or other incapacitating condition as a result of which
you are unable to perform your duties at Proginet Corporation for any six (6)
consecutive months. In any such event, Proginet Corporation, in its sole
discretion, may terminate your employment by giving you notice of termination
for Disability. You agree to submit to such medical examinations as may be
necessary to determine whether a Disability exists, pursuant to such reasonable
requests made by Proginet Corporation from time to time, and any determination
as to the existence of a Disability shall be made by a physician selected by
Proginet Corporation.

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