Document:

Unassociated Document

    Exhibit
      10.25

     

    Energy
      XXI (Bermuda) Limited

    1021
      Main
      Street, Suite 2626

    Houston,
      Texas 77002

     

    _____________,
      20__

     

    

    _______________________________

    _______________________________

    _______________________________

    

    

    NOTICE
      OF GRANT OF STOCK OPTION

     

    Pursuant
      to the terms and conditions of the Energy XXI Services, LLC 2006 Long-Term
      Incentive Plan, attached as Appendix
      A
      (the
“Plan”),
      and
      the associated Stock Option Agreement, attached as Appendix
      B
      (the
“Option
      Agreement”),
      you
      are hereby granted an option (this “Option”)
      to
      purchase shares of Stock under the conditions set forth in this Notice of Grant
      of Stock Option (the “Notice”),
      in
      the Option Agreement, and in the Plan. Capitalized terms used but not defined
      herein shall have the meanings set forth in the Plan.

     

    
      	
              Type
                of Option:

            	
              Check
                one (and only one) of the following:

            
	 	
               ̈  Incentive
                Stock Option
                (This Option is
                intended to be an Incentive Stock Option (as defined in the
                Plan).)

            
	 	
               ̈  Nonstatutory
                Stock Option
                (This Option is
                not
                intended to be an Incentive Stock Option (as defined in the
                Plan).)

            
	
              Optionee:

            	
              ______________________

            
	
              Date
                of Grant:

            	
              _______________,
                20____ (“Date
                of Grant”)

            
	
              Number
                of Shares:

            	
              ____________

            
	
              Option
                Price:

            	
              $______
                per share

              Note:
                In the case of an Incentive Stock Option, the Option Price must be
                at
                least 100% (or, in the case of a 10% shareholder of the Company,
                110%) of
                the Fair Market Value (as defined in the Plan) of a share of Stock
                on the
                Date of Grant.

            
	
              Expiration
                Date:

            	
              _______________,
                20____

            
	 	
              Note:
                In the case of an Incentive Stock Option, this date cannot be more
                than
                ten years (or in the case of a 10% shareholder of the Company, more
                than
                five years) from the Date of Grant.

            
	
              Vesting
                Schedule:

            	
              Subject
                to the other terms and conditions set forth herein, the Option Agreement
                and in the Plan, this Option may be exercised in cumulative installments
                as follows, provided that you remain in the employ of, or a service
                provider to, the Company or its Parent or Subsidiaries until the
                following
                applicable dates, this Option will become exercisable with respect
                to: (a)
                20% of the Option Shares on the one year anniversary of the Date
                of Grant,
                (b) 50% of the Option Shares on the second year anniversary of the
                Date of
                Grant, and (c) 100% of the Option Shares on the third year anniversary
                of
                the Date of Grant. 

            

    

    
       

      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      ____________________

      Page
        2 

      ___________________,
        20___

      

    

    By
      your
      signature and the signature of the Company’s representative below, you and the
      Company hereby acknowledge your receipt of this Option granted on the Date
      of
      Grant indicated above, which has been issued to you under the terms and
      conditions of this Notice, the Plan and the Option Agreement, including the
      vesting and risk of forfeiture provisions set forth therein. 

     

    You
      understand and acknowledge that if the purchase price of the Stock under this
      Option is less than the Fair Market Value of such Stock on the date of grant
      of
      this Option, then you may incur adverse tax consequences under sections 409A
      and/or 422 of the Code. You acknowledge and agree that (a) you are not relying
      upon any determination by the Company, its affiliates, or any of their
      respective employees, directors, officers, attorneys or agents (collectively,
      the “Company
      Parties”)
      of the
      Fair Market Value of the Stock on the Date of Grant, (b) you are not relying
      upon any written or oral statement or representation of the Company Parties
      regarding the tax effects associated with your execution of this Notice and
      your
      receipt, holding and exercise of this Option, and (c) in deciding to enter
      into
      this Notice, you are relying on your own judgment and the judgment of the
      professionals of your choice with whom you have consulted. You hereby release,
      acquit and forever discharge the Company Parties from all actions, causes of
      actions, suits, debts, obligations, liabilities, claims, damages, losses, costs
      and expenses of any nature whatsoever, known or unknown, on account of, arising
      out of, or in any way related to the tax effects associated with your execution
      of this Notice and your receipt, holding and exercise of this Option.

     

    You
      further acknowledge receipt of a copy of the Plan and the Option Agreement
      and
      agree to all of the terms and conditions of this Notice and of the Plan and
      the
      Option Agreement, which are incorporated in this Notice by
      reference.

     

    Note:
      To accept the grant of this Option, you must execute this form and return an
      executed copy to _________________ (the “Designated Recipient”) by __________.
      Failure to return the executed copy to the Designated Recipient by such date
      will render this Option invalid.
      

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Energy
      XXI Services, LLC

    a
      Delaware limited liability company

    

    By: 

    Name: 

    Title: 

    

    Accepted
      by:

    

    ____________________________________

    [insert
      name of Grantee]

    

    Date: 

    

    

    ____________________________________

    [insert
      name of Designated Recipient]

    

    Date
      Received: 

    

    

    

    

    Attachments: 

    

    Appendix
      A - Energy XXI Services, LLC 2006 Long-Term Incentive Plan 

    Appendix
      B - Stock Option Agreement

    
      
        
          

          

        

        
        

      

      
        3

        
          

        

      

      
        
        

        
        

      

    

    Appendix
      A

    

    

    

    

    

    Energy
      XXI Services, LLC

    2006
      Long-Term Incentive Plan

    

    

    

    
      
        
           

        

        
        

      

      
        A-1

        
          

        

      

      
        
        

        
        

      

    

    Appendix
      B

    

    

    

    

    Stock
      Option Agreement

    

     

    

     

    
      
        
           

        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    ENERGY
      XXI SERVICES LLC

    2006
      LONG-TERM INCENTIVE PLAN

     

    STOCK
      OPTION AGREEMENT

     

    This
      Agreement is made and entered into as of the Date of Grant set forth in the
      Notice of Grant of Stock Option (“Notice
      of Grant”)
      by and
      between Energy XXI Services, LLC, a Delaware limited liability corporation
      (the
“Company”),
      and
      you:

     

    WHEREAS,
      the
      Company, in order to induce you to enter into and/or continue in dedicated
      service to the Company and to materially contribute to the success of the
      Company, agrees to grant you an option to acquire an interest in the Company
      through the purchase of shares of common stock of the Company;

     

    WHEREAS,
      the
      Company adopted the Energy XXI Services, LLC 2006 Long-Term Incentive Plan,
      as
      it may be amended from time to time (the “Plan”),
      under
      which the Company is authorized to grant stock options to certain employees
      and
      service providers of the Company; 

     

    WHEREAS,
      a copy
      of the Plan has been furnished to you and shall be deemed a part of this stock
      option agreement (the “Agreement”)
      as if
      fully set forth herein and terms capitalized but not defined herein shall have
      the meaning set forth in the Plan; and

     

    WHEREAS,
      you
      desire to accept the option created pursuant to the Agreement.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants set forth herein and for other valuable
      consideration hereinafter set forth, the parties agree as follows:

     

      The
      Grant.
      Subject
      to the conditions set forth below, the Company hereby grants to you, effective
      as of the Date of Grant set forth in the Notice of Grant, as a matter of
      separate inducement and not in lieu of any salary or other compensation for
      your
      services for the Company, the right and option to purchase (the “Option”),
      in
      accordance with the terms and conditions set forth herein and in the Plan,
      an
      aggregate of the number of shares of the Company’s stock set forth in the Notice
      of Grant (the “Option
      Shares”),
      at
      the Exercise Price set forth in the Notice of Grant.

     

      Exercise. 

     

      Option
      Shares shall be deemed “Nonvested
      Shares”
unless
      and until they have become “Vested
      Shares.”
The
      Option shall in all events terminate at the close of business on the tenth
      (10)
      anniversary of the date of this Agreement (the “Expiration
      Date”).
      Subject to other terms and conditions set forth herein, the Option may be
      exercised in cumulative installments in accordance with the vesting schedule
      set
      forth in the Notice of Grant, provided that you remain in the employ of or
      a
      service provider to the Company or its Subsidiaries until the applicable dates
      set forth therein. 

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    

     

      Subject
      to the relevant provisions and limitations contained herein and in the Plan,
      you
      may exercise the Option to purchase all or a portion of the applicable number
      of
      Vested Shares at any time prior to the termination of the Option pursuant to
      this Option Agreement. In no event shall you be entitled to exercise the Option
      for any Nonvested Shares or for a fraction of a Vested Share.

     

      Any
      exercise by you of the Option shall be in writing addressed to the Secretary
      of
      the Company at its principal place of business. Exercise of the Option shall
      be
      made by delivery to the Company by you (or other person entitled to exercise
      the
      Option as provided hereunder) of an
      executed “Notice of Stock Option Exercise,” in a form to be determined from time
      to time by the Board of Directors of the Company (“Board”),
      and
payment
      of the aggregate purchase price for shares purchased pursuant to the
      exercise.

     

      Payment
      of the Exercise Price, together with any required withholding taxes, for each
      Option shall be made (i) in cash or by check payable and acceptable to the
      Company, (ii) with the consent of the Remuneration Committee of the Company’s
      Board of Directors (“Committee”),
      by
      tendering to the Company shares of the Company’s common stock owned by the
      person for more than six months having an aggregate Fair Market Value as of
      the
      date of exercise that is not greater than the full exercise price for the shares
      with respect to which the Option is being exercised and by paying any remaining
      amount of the exercise price as provided in (i) above, or (iii) subject to
      such
      instructions as the Committee may specify, at the person’s written request the
      Company may deliver certificates for the shares of the Company’s common stock
      for which the Option is being exercised to a broker for sale on behalf of the
      person, provided that the person has irrevocably instructed such broker to
      remit
      directly to the Company on the person’s behalf the full amount of the exercise
      price from the proceeds of such sale. In the event that you elect to make
      payment as allowed under clause (ii) above, the Committee may, upon confirming
      that you own the number of additional shares being tendered, authorize the
      issuance of a new certificate for the number of shares being acquired pursuant
      to the exercise of the Option less the number of shares being tendered upon
      the
      exercise and return to you (or not require surrender of) the certificate for
      the
      shares being tendered upon the exercise. If the Committee so requires, you
      shall
      also deliver a written representation that all shares being purchased are being
      acquired for investment and not with a view to, or for resale in connection
      with, any distribution of such shares.

     

      If
      you
      are on leave of absence for any reason, the Company may, in its sole discretion,
      determine that you will be considered to still be in the employ of or providing
      services for the Company, provided that rights to the Option will be limited
      to
      the extent to which those rights were earned or vested when the leave or absence
      began.

     

      The
      terms
      and provisions of the employment agreement, if any, between you and the Company
      or any Parent or Subsidiary (the “Employment
      Agreement”)
      that
      relate to or affect the Option are incorporated herein by reference.
      Notwithstanding the foregoing provisions of this Section 0
      or
      Section 3, in the event of any conflict or inconsistency between the terms
      and
      conditions of this Section 0
      or
      Section 3 and the terms and conditions of the Employment Agreement, the terms
      and conditions of the Employment Agreement shall be controlling.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

      Effect
      of Termination of Service on Vesting and Exercisability.
      Except
      as provided in Sections 6 and 7 or an Employment Agreement, this Option may
      be
      exercised only while you continue to perform services for the Company or any
      Parent or Subsidiary and will terminate and cease to be exercisable upon
      termination of your service, except
      as
      follows:

     

      Termination
      on Account of Disability.
      Notwithstanding the vesting schedule in the Notice of Grant, if your service
      with the Company or any Parent or Subsidiary terminates by reason of Disability,
      this Option shall become 100% vested, and may be exercised by you (or your
      estate or the person who acquires this Option by will or the laws of descent
      and
      distribution or otherwise by reason of your death) at any time during the period
      ending on the earlier to occur of (i) the date that is one year following such
      termination, or (ii) the Expiration Date.

     

      Termination
      on Account of Death.
      Notwithstanding the vesting schedule in the Notice of Grant, if you cease to
      perform services for the Company or any Parent or Subsidiary due to your death,
      this Option shall become 100% vested, and your estate, or the person who
      acquires this Option by will or the laws of descent and distribution or
      otherwise by reason of your death, may exercise this Option at any time during
      the period ending on the earlier to occur of (i) the date that is one year
      following your death, or (ii) the Expiration Date.

     

      Termination
      not for Cause.
      Notwithstanding the vesting schedule in the Notice of Grant, if your service
      with the Company or any Parent or Subsidiary is terminated by the Company for
      any reason other than Cause, or by the Employee for Good Reason, this Option
      shall become 100% vested, and this Option may be exercised by you at any time
      during the period ending on the earlier to occur of (i) the date that is three
      months following your termination, or (ii) the Expiration Date, or by your
      estate (or the person who acquires this Option by will or the laws of descent
      and distribution or otherwise by reason of your death) during a period of one
      year following your death if you die during such three-month period.

     

      Termination
      in Connection with a Change of Control.
      Notwithstanding Sections 3(a), (b) or (c) above, if your service with the
      Company or any Parent or Subsidiary is terminated for any reason during the
      one
      year period immediately following a Change of Control, this Option shall become
      100% vested, and this Option may be exercised by you at any time during the
      period ending on the earlier to occur of (i) the date that is three months
      following your termination, or (ii) the Expiration Date, or by your estate
      (or
      the person who acquires this Option by will or the laws of descent and
      distribution or otherwise by reason of your death) during a period of one year
      following your death if you die during such three-month period. 

     

      Transferability.
      The
      Option, and any rights or interests therein will be transferable by you only
      to
      the extent approved by the Committee in conformance with Section 2.3(c) or
      Section 3.5 of the Plan, as applicable.

     

      Compliance
      with Securities Law.
      Notwithstanding any provision of this Agreement to the contrary, the grant
      of
      the Option and the issuance of the Company’s common stock will be subject to
      compliance with all applicable requirements of federal, state, and foreign
      securities laws and with the requirements of any stock exchange or market system
      upon which the Company’s common stock may then be listed. The Option may not be
      exercised if the issuance of shares of the Company’s common stock upon exercise
      would constitute a violation of any applicable federal, state, or foreign
      securities laws or other law or regulations or the requirements of any stock
      exchange or market system upon which the Company’s common stock may then be
      listed. In addition, the Option may not be exercised unless (a) a
      registration statement under the Securities Act of 1933, as amended (the
“Act”),
      is at
      the time of exercise of the Option in effect with respect to the shares issuable
      upon exercise of the Option or (b) in the opinion of legal counsel to the
      Company, the shares issuable upon exercise of the Option may be issued in
      accordance with the terms of an applicable exemption from the registration
      requirements of the Act. YOU ARE CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED
      UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, YOU MAY NOT BE
      ABLE
      TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The
      inability of the Company to obtain from any regulatory body having jurisdiction
      the authority, if any, deemed by the Company’s legal counsel to be necessary to
      the lawful issuance and sale of any shares subject to the Option will relieve
      the Company of any liability in respect of the failure to issue or sell such
      shares as to which such requisite authority has not been obtained. As a
      condition to the exercise of the Option, the Company may require you to satisfy
      any qualifications that may be necessary or appropriate to evidence compliance
      with any applicable law or regulation and to make any representation or warranty
      with respect to such compliance as may be requested by the Company.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

      Extension
      if Exercise Prevented by Law.
      Notwithstanding Section 3, if the exercise of the Option within the applicable
      time periods set forth in Section 3 is prevented by the provisions of Section
      5,
      the Option will remain exercisable until 30 days after the date you are notified
      by the Company that the Option is exercisable, but in any event no later than
      the Expiration Date. The Company makes no representation as to the tax
      consequences of any such delayed exercise. You should consult with your own
      tax
      advisor as to the tax consequences of any such delayed exercise.

     

      Extension
      if You are Subject to Section 16(b).
      Notwithstanding Section 3, if a sale within the applicable time periods set
      forth in Section 3 of shares acquired upon the exercise of the Option would
      subject you to suit under Section 16(b) of the Securities Exchange Act of 1934,
      as amended, the Option will remain exercisable until the earliest to occur
      of
      (a) the 10th day following the date on which a sale of such shares by you would
      no longer be subject to such suit, (b) the 190th day after your termination
      of
      service with the Company and any Parent or Subsidiary, or (c) the Expiration
      Date. The Company makes no representation as to the tax consequences of any
      such
      delayed exercise. You should consult with your own tax advisor as to the tax
      consequences of any such delayed exercise.

     

      Withholding
      Taxes.
      The
      Committee may, in its discretion, require you to pay to the Company at the
      time
      of the exercise of an Option or thereafter, the amount that the Committee deems
      necessary to satisfy the Company’s current or future obligation to withhold
      federal, state or local income or other taxes that you incur by exercising
      an
      Option. In connection with such an event requiring tax withholding, the
      Committee may direct
      the Company to withhold from the shares of the Company’s common stock to be
      issued to you the number of shares necessary to satisfy the Company’s obligation
      to withhold taxes, that determination to be based on the shares’ Fair Market
      Value as of the date of exercise; require
      that you to the Company sufficient shares of the Company’s common stock (based
      upon the Fair Market Value as of the date of such delivery) to satisfy the
      Company’s tax withholding obligation; or require
      that you deliver sufficient cash to the Company to satisfy its tax withholding
      obligations. Notwithstanding the foregoing, if on the date of an event giving
      rise to a tax withholding obligation on behalf of yourself or the Company,
      if
      you are an officer or individual subject to Rule 16b-3 under the 1934 Act,
      then,
      to the extent permitted by applicable law, you may direct that such tax
      withholding be effectuated by the Company withholding the necessary number
      of
      shares of the Company’s common stock (at the tax rate required by the Code) from
      such Award payment or exercise. 

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

     

      Status
      of Common Stock.
      With
      respect to the status of the Company’s common stock, at the time of execution of
      this Agreement you understand and agree to all of the following:

     

      You
      understand that at the time of the execution of this Agreement the shares of
      the
      Company’s common stock to be issued upon exercise of this Option have been
      registered under the Act. However, the Company is under no obligation to
      continue such registration. In the event that an effective registration
      statement for the Company’s common stock to be issued upon exercise of this
      Option is not available, and in the event that an exemption from registration
      under the Act is available upon an exercise of this Option, you (or such other
      person permitted to exercise this Option if applicable), if requested by the
      Company to do so, will execute and deliver to the Company in writing an
      agreement containing such provisions as the Company may require to ensure
      compliance with applicable securities laws. 

     

      You
      agree
      that the shares of the Company’s common stock that you may acquire by exercising
      this Option will be acquired for investment without a view to distribution,
      within the meaning of the Act, and will not be sold, transferred, assigned,
      pledged, or hypothecated in the absence of an effective registration statement
      for the shares under the Act and applicable state securities laws or an
      applicable exemption from the registration requirements of the Act and any
      applicable state securities laws. You also agree that the shares of the
      Company’s common stock that you may acquire by exercising this Option will not
      be sold or otherwise disposed of in any manner that would constitute a violation
      of any applicable securities laws, whether federal or state.

     

      You
      agree
      that (i) the Company may refuse to register the transfer of the shares of
      the Company’s common stock purchased under this Option on the stock transfer
      records of the Company if such proposed transfer would in the opinion of counsel
      satisfactory to the Company constitute a violation of any applicable securities
      law and (ii) the Company may give related instructions to its transfer agent,
      if
      any, to stop registration of the transfer of the shares of the Company’s common
      stock purchased under this Option.

     

      Adjustments.
      The
      terms of the Option shall be subject to adjustment from time to time, in
      accordance with the following provisions:

     

      In
      the
      event that the outstanding shares of the Company’s common stock are subdivided,
      consolidated, split-up, spun-off, reclassified, recapitalized, or changed into
      or exchanged for a different number or kind of shares or other securities of
      the
      Company by reason of merger, consolidation, recapitalization, reclassification,
      stock split, stock dividend, combination of shares or the like, the Committee
      shall make an appropriate and equitable adjustment in the number and kind of
      shares, and the exercise price per share, as to which all outstanding Options
      granted, or portions thereof then unexercised, shall be exercisable, to the
      end
      that after such event the shares subject to the Plan and each Participant’s
      proportionate interest shall be maintained as before the occurrence of such
      event. Such adjustment in an outstanding Option shall be made without change
      in
      the total price applicable to the Option or the unexercised portion of the
      Option (except for any change in the aggregate price resulting from rounding
      of
      share quantities or prices) and with any necessary corresponding adjustment
      in
      exercise price per share. Any such adjustment made by the Committee shall be
      final and binding upon all Participants, the Company and all other interested
      persons. 

     

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

      Whenever
      the number of shares of the Company’s common stock subject to the Option and the
      price for each share of common stock subject to the Option are required to
      be
      adjusted as provided in this Section 10, the Committee shall promptly prepare
      a
      notice setting forth, in reasonable detail, the event requiring adjustment,
      the
      amount of the adjustment, the method by which such adjustment was calculated,
      and the change in price and the number of shares of the Company’s common stock,
      other securities, cash, or property purchasable by you pursuant to the exercise
      of the Option or subject to the Option after giving effect to the adjustments.
      The Committee shall promptly give you such a notice.

     

      Adjustments
      under this Section 10 shall be made by the Committee, and its determination
      as
      to what adjustments shall be made and the extent thereof shall be final,
      binding, and conclusive. No fractional interest shall be issued under the Plan
      on account of any such adjustments.

     

      Lock-Up
      Period.
      You
      hereby agree that, if so requested by the Company or any representative of
      the
      underwriters (the “Managing
      Underwriter”)
      in
      connection with any registration of the offering of any securities of the
      Company under the Act, you will not sell or otherwise transfer any Option
      Shares or other securities of the Company during the 180-day period (or such
      other period as may be requested in writing by the Managing Underwriter and
      agreed to in writing by the Company) (the “Market
      Standoff Period”)
      following the effective date of a registration statement of the Company filed
      under the Act. Such restriction will apply only to the first registration
      statement of the Company to become effective under the Act that includes
      securities to be sold on behalf of the Company to the public in an underwritten
      public offering under the Act. The Company may impose stop-transfer instructions
      with respect to securities subject to the foregoing restrictions until the
      end
      of such Market Standoff Period.

     

      Stockholder
      Agreement.
      The
      Committee may, in its sole discretion, condition the delivery of the Company’s
      common stock pursuant to the exercise of this Option upon your entering into
      a
      stockholder agreement in such form as approved from time to time by the
      Board.

     

      Legends.
      The
      Company may at any time place legends, referencing any restrictions imposed
      on
      the shares pursuant to Sections 9 or 11 of this Agreement, and any applicable
      federal, state or foreign securities law restrictions, on all certificates
      representing shares of the Company’s common stock subject to the provisions of
      this Agreement. 

     

      Notice
      of Sales Upon Disqualifying Disposition of ISO.
      If the
      Option is designated as an Incentive Stock Option in the Notice of Grant, you
      must comply with the provisions of this Section 14. You must promptly notify
      the
      Chief Financial Officer of the Company if you dispose of any of the shares
      acquired pursuant to the Option within one year after the date you exercise
      all
      or part of the Option or within two years after the Date of Grant. Until such
      time as you dispose of such shares in a manner consistent with the provisions
      of
      this Agreement, unless otherwise expressly authorized by the Company, you must
      hold all shares acquired pursuant to the Option in your name (and not in the
      name of any nominee) for the one-year period immediately after the exercise
      of
      the Option and the two-year period immediately after the Date of Grant. At
      any
      time during the one-year or two-year periods set forth above, the Company may
      place a legend on any certificate representing shares acquired pursuant to
      the
      Option requesting the transfer agent for the Company’s stock to notify the
      Company of any such transfers. Your obligation to notify the Company of any
      such
      transfer will continue notwithstanding that a legend has been placed on the
      certificate pursuant to the preceding sentence.

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

    

     

      Right
      to Terminate Services.
      Nothing
      contained in this Agreement shall confer upon you the right to continue in
      the
      employ of, or performing services for, the Company or any Parent or Subsidiary,
      or interfere in any way with the rights of the Company or any Parent or
      Subsidiary to terminate your employment or service relationship at any
      time.

     

      Furnish
      Information.
      You
      agree to furnish to the Company all information requested by the Company to
      enable it to comply with any reporting or other requirement imposed upon the
      Company by or under any applicable statute or regulation.

     

      Remedies.
      The
      Company shall be entitled to recover from you reasonable attorneys’ fees
      incurred in connection with the enforcement of the terms and provisions of
      this
      Agreement whether by an action to enforce specific performance or for damages
      for its breach or otherwise.

     

      No
      Liability for Good Faith Determinations.
      The
      Company and the members of the Committee and the Board shall not be liable
      for
      any act, omission or determination taken or made in good faith with respect
      to
      this Agreement or the Option granted hereunder. 

     

      Execution
      of Receipts and Releases.
      Any
      payment of cash or any issuance or transfer of shares of the Company’s common
      stock or other property to you, or to your legal representative, heir, legatee
      or distributee, in accordance with the provisions hereof, shall, to the extent
      thereof, be in full satisfaction of all claims of such persons hereunder. The
      Company may require you or your legal representative, heir, legatee or
      distributee, as a condition precedent to such payment or issuance, to execute
      a
      release and receipt therefore in such form as it shall determine. 

     

      No
      Guarantee of Interests.
      The
      Board and the Company do not guarantee the common stock of the Company from
      loss
      or depreciation. 

     

      Company
      Records.
      Records
      of the Company regarding your service and other matters shall be conclusive
      for
      all purposes hereunder, unless determined by the Company to be incorrect.

     

      Notice.
      Each
      notice required or permitted under this Agreement must be in writing and
      personally delivered or sent by mail and shall be deemed to be delivered on
      the
      date on which such notice is actually received by the person to whom it is
      properly addressed or if earlier the date sent via certified mail. 

     

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

     

      Waiver
      of Notice.
      Any
      person entitled to notice hereunder may, by written form, waive such
      notice.

     

      Information
      Confidential.
      As
      partial consideration for the granting of this Option, you agree that you will
      keep confidential all information and knowledge that you have relating to the
      manner and amount of your participation in the Plan; provided, however, that
      such information may be disclosed as required by law and may be given in
      confidence to your spouse, tax and financial advisors. In the event any breach
      of this promise comes to the attention of the Company, it shall take into
      consideration that breach in determining whether to recommend the grant of
      any
      future similar award to you, as a factor weighing against the advisability
      of
      granting any such future award to you.

     

      Successors.
      This
      Agreement shall be binding upon you, your legal representatives, heirs, legatees
      and distributees, and upon the Company, its successors and assigns.

     

      Severability.
      If any
      provision of this Agreement is held to be illegal or invalid for any reason,
      the
      illegality or invalidity shall not affect the remaining provisions hereof,
      but
      such provision shall be fully severable and this Agreement shall be construed
      and enforced as if the illegal or invalid provision had never been included
      herein.

     

      Company
      Action.
      Any
      action required of the Company shall be by resolution of the Board or by a
      person authorized to act by resolution of the Board.

     

      Headings.
      The
      titles and headings of paragraphs are included for convenience of reference
      only
      and are not to be considered in construction of the provisions
      hereof.

     

      Governing
      Law.
      All
      questions arising with respect to the provisions of this Agreement shall be
      determined by application of the laws of Texas, without giving any effect to
      any
      conflict of law provisions thereof, except to the extent Texas state law is
      preempted by federal law. The obligation of the Company to sell and deliver
      its
      common stock hereunder is subject to applicable laws and to the approval of
      any
      governmental authority required in connection with the authorization, issuance,
      sale, or delivery of such common stock.

     

      Consent
      to Texas Jurisdiction and Venue.
      You
      hereby consent and agree that state courts located in Harris County,
      Texas and the United States District Court for the Southern District of Texas
      each shall have personal jurisdiction and proper venue with respect to any
      dispute between you and the Company arising in connection with the Option or
      this Agreement. In any dispute with the Company, you will not raise, and you
      hereby expressly waive, any objection or defense to any such jurisdiction as
      an
      inconvenient forum.

     

      Word
      Usage.
      Words
      used in the masculine shall apply to the feminine where applicable, and wherever
      the context of this Agreement dictates, the plural shall be read as the singular
      and the singular as the plural.

     

      No
      Assignment.
      You may
      not assign this Agreement or any of your rights under this Agreement without
      the
      Company’s prior written consent, and any purported or attempted assignment
      without such prior written consent shall be void.

     

    
      
        
        

      

      
        B-9

        
          

        

      

      
        
        

      

    

     

      Miscellaneous.
      

     

      This
      Agreement is subject to all the terms, conditions, limitations and restrictions
      contained in the Plan. In the event of any conflict or inconsistency between
      the
      terms hereof and the terms of the Plan, the terms of the Plan shall be
      controlling.

     

      The
      Option may be amended by the Board or by the Committee at any time if
      the
      Board or the Committee determines, in its sole discretion, that amendment is
      necessary or advisable in light of any addition to or change in any federal
      or
      state, tax or securities law or other law or regulation, which change occurs
      after the Date of Grant and by its terms applies to the Option; or other
      than in the circumstances described in clause (i) or provided in the Plan,
      with
      your consent. 

     

      If
      this
      Option is intended to be an incentive stock option designed pursuant to section
      422 of the Code, then in the event the Option Shares (and all other options
      designed pursuant to section 422 of the Code granted to you by the Company
      or
      any Parent of the Company or any Subsidiary) that first become exercisable
      in
      any calendar year have an aggregate fair market value (determined for each
      Option Share as of the Date of Grant) that exceeds $100,000, the Option Shares
      in excess of $100,000 shall be treated as subject to a Nonstatutory Stock
      Option.

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        B-10EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT
      (the
      "Agreement")
      dated
      this ____ day of September, 2008 is between Adcom Express, Inc., a Minnesota
      corporation with a place of business at 7424 West 78th
      Street,
      Minneapolis, MN (the "Company"),
      and
      Robert F. Friedman, an individual residing at 401 South First Street, Unit
      1602,
      Minneapolis, MN 55401 (the "Executive").

     

    RECITALS

     

    WHEREAS,
      the
      Company desires to employ Executive, and Executive desires to be employed by
      the
      Company, upon the terms and conditions set forth in this Agreement;
      and

     

    WHEREAS,
      the
      Company and Executive have agreed to enter into this Agreement in consideration
      for, and in connection with, that certain Stock Purchase Agreement (the “Stock
      Purchase Agreement”) dated the date hereof by and between the Executive and
      Radiant Logistics, Inc. (the “Parent”).

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing, the mutual and dependent promises hereinafter
      set forth, and other good and valuable consideration the receipt and sufficiency
      of which is hereby acknowledged the parties, intending to be legally bound,
      do
      hereby agree as follows:

     

    ARTICLE
      1

     

    EMPLOYMENT
      AND TERM

     

    1.1 Employment/Title.
      The
      Company hereby agrees to employ in the Minneapolis, Minnesota metropolitan
      area
      the Executive and the Executive hereby accepts employment as President of the
      Company under the terms and conditions set forth in this Agreement. The
      Executive shall report to the Board of Directors of the Company or such other
      person as the Board of Directors shall designate, for the performance of his
      duties, and shall have responsibility for such duties as are customarily
      associated with his position and such other executive level duties and
      responsibilities, consistent therewith and with the status of a senior level
      executive of the Company, or as may be assigned to the Executive by the Chief
      Executive Officer of the Company or the Board of Directors of the Company or
      such other person as the Board of Directors shall designate. 

     

    1.2 Employment/Duties.
      During
      the Term (as defined in Section 1.3 hereof), Executive shall devote
      substantially all of his working time, attention and skill to the business
      affairs of the Company. Executive shall diligently and faithfully devote his
      entire time, energy, skill, and best efforts to the performance of his duties
      under this Agreement. Executive shall conduct himself at all times so as to
      advance the best interests of the Company, and shall not undertake or engage
      in
      any other business activity or continue or assume any other business
      affiliations which conflict or interfere with the performance of his services
      hereunder without the prior written consent of the Board of Directors of the
      Company. Executive also agrees that he

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    shall
      not
      usurp or misappropriate, either to himself, or to any other person or entity,
      any corporate or other opportunities that would otherwise be available to the
      Company. 

     

    1.3 Effective
      Date.
      Executive will commence work immediately on the date hereof (the "Effective
      Date").

     

    1.4 Term.
      This
      Agreement shall remain in force and effect for a term commencing on the
      Effective Date hereof and expiring on June 30, 2011 (the "Initial Term"), or
      until the employment relationship is terminated pursuant to Section 5 hereof.
      This Agreement may be extended at the election and agreement of the Company
      and
      Executive (a "Renewal Term"). The Initial Term and any Renewal Term are
      collectively referred to as the "Term."
      

     

    ARTICLE
      2

     

    COMPENSATION

     

    2.1 Base
      Salary.
      For
      each twelve (12) month period during the Term of this Agreement, the Executive
      shall be paid an annual base salary of One Hundred Twenty-five Thousand Dollars
      ($125,000) (the “Base Salary”). The Executive's annual Base Salary shall be
      payable in equal installments in accordance with the Company's general salary
      payment policies but no less frequently than monthly.

     

    2.2 Benefits.
      The
      Executive will, during the Term, be permitted to participate in such pension,
      profit sharing, bonus, life insurance, hospitalization, major medical, and
      other
      employee benefit plans of the Company that may be in effect from time to time,
      to the extent Executive is eligible under the terms of those plans. The Company
      may alter, modify, add to or delete its executive benefit plans as they apply
      to
      the Company's senior executive officers at such times and in such manner as
      the
      Company determines appropriate, without recourse by Executive so long as such
      changes are applied in a substantially uniform manner to the Company's executive
      officers.

     

    2.3 Vacation.
      Executive shall be entitled to receive annual vacation in accordance with the
      Company's policies applicable to its senior executive officers, which in any
      event shall not be less than four (4) weeks
      or
      such greater number of weeks as may be provided to the Company's senior
      executives with comparable length of service. The Executive shall also be
      entitled to the paid holidays and other paid leave set forth in the Company's
      policies. Vacation days during any calendar year that are not used by the
      Executive during such calendar year may, at the election of the Company’s Board
      of Directors, either be carried over and used in the subsequent calendar year
      (however, not to exceed two (2) weeks), or may be
      paid
      to Executive in cash at the end of the calendar year.

     

    2.4 Business
      Expenses. Subject
      to and in accordance with the Company's policies and procedures, and, upon
      presentation of itemized accounts, the Executive shall be reimbursed by the
      Company for reasonable and necessary business-related expenses, which expenses
      are incurred by the Executive on behalf of the Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      3

    

    PROPRIETARY
      INFORMATION

     

    3.1 Confidential
      and Proprietary Information.
      Executive acknowledges that he is in a relationship of confidence and trust
      with
      the Company and will come into possession of Confidential Information (as
      defined in the Stock Purchase Agreement), which could constitute a major asset
      of the Company, Parent or their respective affiliates and be of significant
      commercial value, the use, misappropriation or disclosure of such would cause
      a
      breach of trust and could cause irreparable injury to the Company, Parent or
      their respective affiliates (all of the aforementioned information is
      hereinafter collectively referred to as "Proprietary Information").

     

    3.2 Non-Disclosure.
      Executive acknowledges that all Proprietary Information shall be the sole
      property of the Company, Parent, their respective affiliates and their
      successors and assigns. Executive further acknowledges that it is essential
      for
      the proper protection of the business of the Company and Parent that such
      Proprietary Information be kept confidential and not disclosed to third parties
      or used for the benefit of Executive. Accordingly, Executive agrees that during
      the Term and for so long as the information remains Proprietary Information,
      to
      keep in confidence and trust all Proprietary Information, and not to use,
      disclose, disseminate, publish, copy, or otherwise make available, directly
      or
      indirectly, except in the ordinary course of the performance of Executive's
      duties under this Agreement or the Stock Purchase Agreement, any Proprietary
      Information except as expressly authorized in writing by the Company or Parent;
      provided,
      however,
      that
      Executive shall be relieved of his obligation of nondisclosure hereunder if
      Proprietary Information is required to be disclosed by any applicable judgment,
      order or decree of any court or governmental body or agency having jurisdiction
      or by any law, rule or regulation, provided that in connection with any such
      disclosure, Executive shall give the Company and Parent reasonable prior written
      notice of the disclosure of such information pursuant to this exception and
      shall cooperate with the Company and Parent to permit the Company or Parent
      to
      seek confidential treatment for such information from any authority requiring
      delivery of such information; provided further,
      however,
      that if
      Company or Parent has not obtained such confidential treatment by the date
      Executive is required by such authority to disclose the Proprietary Information,
      Executive shall be free to provide such disclosure and there shall be no
      violation of or damages determined under this Agreement or otherwise for
      Executive’s disclosure action and compliance with or pursuant to such
      authority.

     

    3.3 Return
      of Proprietary Information.
      Executive agrees that when he ceases to be employed by the Company, whether
      such
      cessation of employment shall be for any reason or for no reason, with or
      without cause, voluntary or involuntary, or by termination, resignation,
      disability, retirement or otherwise, Executive shall deliver to the Company
      all
      documents and data of any nature owned by the Company pertaining to the
      Proprietary Information. 

     

    3.4 Works
      made for Hire.
      Executive further recognizes and understands that Executive's duties at the
      Company may include the preparation of materials, including without limitation
      written or graphic materials, and that any such materials conceived or written
      by Executive shall be done as "work made for hire" as defined and used in the
      Copyright Act of 1976, 17 U.S.C. §§ 1 et seq.
      In the
      event of publication of such materials, Executive understands that since the
      work is a "work made for hire", the Company will solely retain and own all
      rights in said materials, including right of copyright.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    3.5 Disclosure
      of Works and Inventions.
      In
      consideration of the promises set forth herein, Executive agrees to disclose
      promptly to the Company’s Board of Directors, any and all works, inventions,
      discoveries and improvements authored, conceived or made by Executive during
      the
      period of employment and related to the business or activities of the Company,
      and Executive hereby assigns and agrees to assign all of Executive's interest
      in
      the foregoing to the Company or to its Board of Directors. Executive agrees
      that, whenever he is requested to do so by the Company, Executive shall execute
      any and all applications, assignments or other instruments which the Company
      shall deem necessary to apply for and obtain Letters Patent or Copyrights of
      the
      United States or any foreign country or to otherwise protect the Company's
      interest therein. Executive hereby appoints an authorized officer of the Company
      as Executive's attorney in fact to execute documents on his behalf for this
      purpose. Such obligations shall continue beyond the termination or nonrenewal
      of
      Executive's employment with respect to any works, inventions, discoveries and/or
      improvements that are authored, conceived of, or made by Executive during the
      period of Executive's employment, and shall be binding upon Executive's
      successors, assigns, executors, heirs, administrators or other legal
      representatives. Executive has attached hereto as Exhibit A a list of
      Innovations as of the date hereof which belong to Executive and which are not
      assigned to the Company hereunder (the "Prior Innovations"), or, if no such
      list
      is attached, Executive represents that there are no Prior
      Innovations.

    

    ARTICLE
      4

     

    COMPETITION

     

    4.1 Noncompetition
      and Nonsolicitation Covenants.
      

     

    (a) Executive
      covenants and agrees with the Company that during the Noncompete Term (as
      defined below) he will not, without the prior written consent of the
      Company,
      which
      may be withheld or given in its sole discretion, directly or indirectly, or
      individually or collectively within the United States of America, engage in
      any
      activity or act in any manner, including but not limited to, as an individual,
      owner, sole proprietor, founder, associate, promoter, partner, joint venturer,
      shareholder (other than as the record or beneficial owner of less than five
      percent (5%) of the outstanding shares of a publicly traded corporation),
      officer, director, trustee, manager, employer, employee, licensor, licensee,
      principal, agent, salesman, broker, representative, consultant, advisor,
      investor or otherwise for the purpose of establishing, operating, assisting
      or
      managing any business or entity that is engaged in activities competitive with
      the business of the Company.

     

    (b) Executive
      covenants and agrees with the Company that during the Noncompete
      Term
      (as
      defined below), he will not, without the prior
      written consent
      of
the
      Company which may be withheld or given in its sole discretion, act in any
      manner, including but not limited to, as an individual, owner, sole proprietor,
      founder, associate, promoter, partner, joint venturer, shareholder (other than
      as the record or beneficial owner of less than five percent (5%) of the
      outstanding shares of a publicly traded corporation), officer, director,
      trustee, manager, employer, employee, licensor, licensee, principal, agent,
      salesman, broker, representative, consultant, advisor, investor or otherwise,
      directly or indirectly, to: (i) solicit, counsel or attempt to induce any person
      who is then in the employ of the Company, or who is then providing

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    services
      as a consultant or agent of the Company, to leave the employ of or cease
      providing services, as applicable, to the Company, or employ or attempt to
      employ any such person or persons who at any time during the preceding one
      (1)
      year was in the employ of, or provided services to, the Company; or (ii)
      solicit, bid for or perform for any of the then current customers of the Company
      (defined as a customer who has done business with the Company within a year)
      any
      services of the type the Company performed for such customer at any time during
      the preceding one (1) year period.

     

    4.2 Noncompete
      Term.
      The
      "Noncompete Term" shall mean the period commencing on the Effective Date and
      ending on the later of: (i) October 1, 2012; (ii) the end of such period that
      Executive remains employed by the Company; or (iii) the end of any period during
      which Executive receives severance or salary continuation from the Company
      following employment.

     

    4.3 Blue
      Pencil Rule.
      The
      Executive and the Company desire that the provisions of this Article 4 be
      enforced to the fullest extent permissible under the laws and public policies
      applied in each jurisdiction in which enforcement is sought. The parties agree
      that Executive is a key executive of the Company. If a court of competent
      jurisdiction, however, determines that any restrictions imposed on the Executive
      in this Article 4 are unreasonable or unenforceable because of duration,
      geographic area or otherwise, the Executive and Company agree and intend that
      the court shall enforce this Article 4 to the maximum extent the court deems
      reasonable and that the court shall have the right to strike or change any
      provisions of this Article 4 and substitute therefore different provisions
      to
      effect the intent of this Article 4 to the maximum extent possible.

     

    ARTICLE
      5

     

    TERMINATION
      OF EMPLOYMENT AND SEVERANCE BENEFITS

     

    5.1 Events
      of Termination by the Company.
      

     

    (a) Death
      or Disability.
      In the
      event Executive dies or becomes permanently disabled during the term of this
      Agreement, his employment hereunder shall automatically terminate. In such
      case,
      the Company shall pay to Executive or his estate, personal representative or
      beneficiary, as the case may be: (i) any Base Salary earned but unpaid at the
      date of termination; (ii) any unpaid accrued benefits of the Executive through
      the date of termination; (iii) any unreimbursed expenses for which Executive
      shall not have been reimbursed as provided in Article 2; and (iv) any accrued
      but unpaid bonus through the date of termination. For the purpose of this
      Agreement, "permanent disability" or "permanently disabled" shall mean the
      inability of the Executive, due to physical or mental illness or disease, to
      perform the functions then performed by such Executive for one hundred eighty
      (180) substantially consecutive days, accompanied by the likelihood, in the
      opinion of a physician chosen by the Company and reasonably acceptable to the
      Executive, that the disabled Executive will be unable to perform such functions
      within the reasonably foreseeable future; provided,
      however,
      that
      the foregoing definition shall not include a disability for which the Company
      is
      required to provide reasonable accommodation pursuant to the Americans with
      Disabilities Act or other similar statute or regulation. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) By
      the
      Company for Cause.
      This
      Agreement may be terminated by the Company for "Cause" at any time. "Cause"
      for termination shall mean the following conduct:

     

    (i) Executive's
      falsification of the books and records of the Company, misappropriation or
      embezzlement of funds or property of the Company, any attempt to obtain any
      personal profit from any transaction in which the Executive has an interest
      that
      is adverse to the Company, any breach of the duty of loyalty and fidelity to
      the
      Company, or any other similar material dishonesty with respect to the Company;
      

     

    (ii) Any
      act
      or omission which subjects the Company or any of its affiliates to public
      disrespect, scandal, or ridicule, or that causes the Company to be in violation
      of governmental regulations that subjects the Company either to sanctions by
      governmental authority or to civil liability to its employees or third
      parties;

    

    (iii) Breach
      of
      any material provision of this Agreement by the Executive if not cured within
      fifteen (15) days after receiving written notice thereof; 

     

    (iv) Material
      neglect or refusal to perform the duties assigned to the Executive pursuant
      to
      this Agreement if not cured within fifteen (15) days after receiving written
      notice thereof;

     

    (v) Conviction
      of, or plea of nolo contendere to, a felony; or

     

    (vi) Gross
      or
      willful misconduct of Executive with respect to the Company if not cured within
      fifteen (15) days after receiving written notice thereof.   

     

    Upon
      termination of Executive's employment hereunder for Cause, the Company shall
      have no further obligation or liability to Executive other than the payment
      of
      (i) Base Salary earned but unpaid at the date of termination,
      (ii) any
      unpaid accrued benefits of the Executive, and (iii) reimbursement for any
      expenses for which the Executive shall not have been reimbursed as provided
      in
      Article 2.

     

    (c) By
      Executive For Good Reason.

     

    (i) Executive
      may terminate his employment by the Company for "Good Reason" at any time upon
      at least thirty (30) days’ written notice to the Company and a right to cure,
      setting forth in reasonable detail the nature of such good reason. "Good Reason"
      for Executive to terminate his employment shall mean, the occurrence of a
      Corporate Transaction (as defined in the Stock Purchase Agreement), a
      requirement that the Executive relocate outside of the Minneapolis metropolitan
      area, or in the absence of a for Cause event initiated first by the Company,
      any
      material act or omission by the Company that is not consented to by the
      Executive in a writing signed by Executive which constitutes a material breach
      of any term or provision of this Agreement or which results in the assignment
      to
      Executive of any duties materially inconsistent with, or in any material
      diminution of, the positions,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    duties,
      responsibilities and status of Executive hereunder or any change in Executive's
      title or duties with the same intent or effect which breach continues for more
      than fifteen (15) days after written notice of such breach to
      Company.

     

    (ii) In
      the
      event of the termination of the Executive’s employment with the Company by
      Executive for “Good Reason” as defined above, Executive shall be entitled to
      receive from the Company continuation of payment of all Base Salary and bonus
      and continuation of all benefits which Executive would have been entitled to
      receive had his employment not terminated, at the same times as such payments
      would otherwise have been made pursuant to Article 2 hereof for a period of
      one
      (1) year after such termination of employment if, and only if, the Executive
      signs a valid general release of all claims against the Company, its affiliates,
      subsidiaries, officers, directors, and agents, in a form provided by the
      Company.

     

     

    (d) Termination
      other than for Cause.
      Executive’s
      employment may not be terminated by the Company hereunder except for Cause,
      or
      as a result of his Death or Disability, or following his voluntary
      resignation.

     

    5.2 Voluntary
      Termination by Executive.
      If
      Executive voluntarily resigns or terminates his employment for other than Good
      Reason, the Company shall have no further obligation or liability to Executive
      other than the payment of: (i) Base Salary earned but unpaid at the date of
      termination; (ii) any unpaid accrued benefits of the Executive;
      (iii)
      reimbursement for any expenses for which the Executive shall not have been
      reimbursed as provided in Article 2; and (iv) any unpaid bonus that has been
      earned by the Executive and accrued by the Company prior to the date of such
      termination.

     

    5.3 Survival.
      Notwithstanding termination of this Agreement as provided in this
      Article 5, the rights and obligations of Executive and the Company under
      Article 3 through Article 5 and Sections 6.5, 6.9 and 6.10 shall survive
      termination. 

     

    ARTICLE
      6

     

    GENERAL
      PROVISIONS

     

    6.1 Entire
      Agreement.
      This
      Agreement, including any Exhibits to this Agreement and any definitions
      incorporated herein, contains the entire understanding of the parties with
      respect to the matters contained herein and supersedes all prior and
      contemporaneously made written or oral agreements between the parties relating
      to the subject matter hereof. There are no oral understandings, terms, or
      conditions, and no party has relied upon any representation, express or implied,
      not contained in this Agreement.

     

    6.2 Amendments.
      This
      Agreement may not be amended in any respect whatsoever, nor may any provision
      hereof be waived by any party, except by a further agreement, in writing, fully
      executed by each of the parties.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.3 Successors.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      to
      their respective heirs, personal representatives, successors and assigns,
      executors and/or administrators, provided that (a) Executive may not assign
      his
      rights hereunder (except by will or the laws of descent) without the prior
      written consent of the Company and (b) Company may not assign its rights
      hereunder without the prior written consent of Executive which will not be
      unreasonably withheld.

     

    6.4 Captions.
      The
      captions of this Agreement are for convenience and reference only and in no
      way
      define, describe, extend or limit the scope or intent of this Agreement or
      the
      intent of any provision contained in this Agreement.

     

    6.5 Notice.
      All
      notices, consents, waivers, and other communications under this Agreement must
      be in writing and will be deemed to have been duly given when (a) delivered
      by
      hand, (b) sent by facsimile (with written confirmation of receipt), provided
      that a copy is mailed by registered mail, return receipt requested, or (c)
      when
      received by the addressee, if sent by a nationally recognized overnight delivery
      service (receipt requested), in each case to the appropriate addresses and
      facsimile numbers set forth below (or to such other addresses and facsimile
      numbers as a party may designate by notice to the other parties):

     

    If
      to the
      Company:

    Radiant
      Logistics, Inc.

    c/o
      Bohn
      H. Crain

    1227
      120th
      Avenue
      NE

    Bellevue,
      WA 98005

    

    With
      a
      copy to:

    Stephen
      M. Cohen, Esq.

    c/o
      Fox
      Rothschild LLP

    2000
      Market Street; 10th
      floor

    Philadelphia,
      PA 19103

    

    If
      to the
      Shareholder:

    Robert
      F.
      Friedman

    401
      S.
      1st
      Street

    Unit
      1602

    Minneapolis,
      MN 55401

    

    With
      a
      copy to:

    Krass
      Monroe, P.A.

    c/o
      John
      E. Berg, Esq.

    8000
      Norman Center Drive, Suite 1000

    Minneapolis,
      MN 55437 

    

    6.6 Counterparts.
      This
      Agreement may be executed in one or more copies, each of which shall be deemed
      an original. This Agreement may be executed by facsimile signature and each
      party may fully rely upon facsimile execution; this agreement shall be fully
      enforceable against a party which has executed the agreement by
      facsimile.

     

    6.7 Partial
      Invalidity.
      The
      invalidity of one or more of the phrases, sentences, clauses, sections or
      Articles contained in this Agreement shall not affect the validity of
      the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    remaining
      portions so long as the material purposes of this Agreement can be determined
      and effectuated.

     

    6.8 Applicable
      Law.
      This
      Agreement shall be governed by, construed and enforced in accordance with the
      laws of the State of Minnesota without regard to principles of comity or
      conflicts of laws provisions of any jurisdiction.

     

    6.9 Resolution
      of Disputes.

     

    (a) Subject
      to the provisions of Section 7.9(b), any dispute, difference or controversy
      arising under this Agreement regarding the payment of money shall be settled
      by
      arbitration. Any arbitration pursuant to this Section 7.9 shall be held
      before a single arbitrator. Except as otherwise set forth herein, each party
      shall bear its own expenses for counsel and other out-of-pocket costs in
      connection with any resolution of a dispute, difference or controversy. Any
      arbitration shall take place in Minneapolis, Minnesota or at such other location
      as the parties may agree upon, according to the American Arbitration
      Association's Employment
      Arbitration Rules now in force and hereafter adopted or by the parties' further
      agreement or as set forth herein. The parties agree that, in any arbitration
      the
      parties shall, to the maximum extent possible, have such rights as to the scope
      and manner of discovery as are permitted in the Federal Rules of Civil Procedure
      and consent to the entry of any order of any court of competent jurisdiction
      necessary to enforce such discovery. In submitting the dispute to the
      arbitrators, each of the parties shall concurrently furnish, at its own expense,
      to the arbitrator and the other parties such documents and information as the
      arbitrator may request. Each party may also furnish to the arbitrator such
      other
      information and documents as it deems relevant, with the appropriate copies
      and
      notification being concurrently given to the other party. Neither party shall
      have or conduct any communication, either written or oral, with the arbitrator
      without the other party either being present or receiving a concurrent copy
      of
      such written communication. The arbitrator may conduct a conference concerning
      the objections and disagreements between the parties, at which conference each
      party shall have the right to (i) present its documents, materials and
      other evidence (as previously provided to the arbitrator and the other parties),
      and (ii) to have present its or their advisors, accountants and/or counsel.
      The arbitrator shall make his award in accordance with and based upon all the
      provisions of this Agreement,
      and
      judgment upon any award rendered by the arbitrator shall be entered in any
      court
      having jurisdiction thereof. The fees and disbursements of the arbitrator shall
      be borne equally by the parties, with each party bearing its own expenses for
      counsel and other out-of-pocket costs. The arbitrator is specifically authorized
      to award costs and attorney's fees to the party substantially prevailing in
      the
      arbitration and shall do so in any case in which he believes the arbitration
      was
      not commenced in good faith.

     

    (b) The
      parties acknowledge that in the case of disputes regarding matters other than
      the payment of money, damages may be insufficient to remedy a breach of this
      Agreement and that irreparable harm may result from a breach of this Agreement.
      Accordingly, the parties consent to the award of preliminary and permanent
      injunctive relief and specific performance to remedy any material breach of
      this
      Agreement, regarding disputes other than the payment of money, without limiting
      any other rights or remedies to which the parties may be entitled under law
      or
      equity. Either party may pursue injunctive relief or specific performance in
      any
      court of competent jurisdiction.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.10 No
      Waiver. No
      failure on the part of any Party to exercise, and no delay by any Party in
      exercising, any right, power or remedy hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise by any Party of any right,
      power or remedy hereunder, preclude any other or further exercise thereof,
      or
      the exercise of any other right, power or remedy by such Party.

     

    6.11 Genders.
      Any
      reference to the masculine gender shall be deemed to include feminine and neuter
      genders, and vice versa, and any reference to the singular shall include the
      plural, and vice versa, unless the context otherwise requires.

     

    6.12 No
      Conflicts.
      The
      parties represent and warrant that the terms of this Agreement do not violate
      any existing agreements with other parties.

     

    6.13 Deductions
      from Salary and Benefits.
      The
      Company will withhold from any salary or benefits payable to the Executive
      all
      federal, state, local, and other taxes and other amounts as required by law,
      rule or regulation.

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be duly executed as of the date
      first set forth above.

     

    IMPORTANT
      NOTICE:
      THIS AGREEMENT RESTRICTS EXECUTIVE’S RIGHTS TO OBTAIN OTHER EMPLOYMENT FOLLOWING
      HIS EMPLOYMENT WITH THE COMPANY. BY SIGNING IT, EXECUTIVE ACKNOWLEDGES THIS
      FACT, AND FURTHER ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY THE COMPANY TO READ
      THE AGREEMENT CAREFULLY, AND/OR TO CONSULT WITH COUNSEL OF HIS CHOICE CONCERNING
      THE LEGAL EFFECTS OF SIGNING THE AGREEMENT, PRIOR TO SIGNING
      IT.

    

    COMPANY:

     

    ADCOM
      EXPRESS, INC.

     

    By: 
      /s/ Bohn H.
      Crain                                            

    Its: 
      Chief Executive
      Officer                           

     

    EXECUTIVE:

     

    /s/
      Robert F.
      Friedman                                           

    Robert
      F.
      Friedman

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    PRIOR
      INNOVATIONS

    

    None

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