Document:

Exhibit 10.4

AMENDMENT NO. 2

TO

AGREEMENT TO PROVIDE

SERVICES

This Amendment No. 2 to

Agreement to Provide Services, dated as of August 6, 2002 (the “Amendment”), is

by and among Hauser, Inc., a Delaware Corporation (the “Company”), Kenneth

Cleveland Associates, Inc. (the “Contractor”) and Kenneth C. Cleveland

(“Cleveland”).

WHEREAS, the parties have

previously entered into that certain Agreement to Provide Services, dated as of

August 1, 2000, as amended (the “Agreement”); and

WHEREAS,

Section 6(d) of the Agreement provides that the Agreement may be amended with

the written consent of all parties thereto; and

WHEREAS,

the parties now desire to amend the Agreement as set forth herein.

NOW,

THEREFORE, the parties hereto agree that:

1.             Definitions. 

Unless otherwise defined herein, all capitalized terms used in this

Amendment shall have the meaning ascribed to them in the Agreement.

2.             Amendment. 

Paragraph (d) of Section 3 of the Agreement is hereby amended and

restated in its entirety as follows:

(d)  Prior to July 10, 2002, the Company shall

pay Contractor a bonus for the fiscal year ended March 31, 2002 of one hundred

thousand dollars ($100,000); provided, however, that (y) the Company achieves

the operating results for such fiscal year as set forth in the annual budget

for such fiscal year as approved by the Board of Directors and (x) Contractor

shall use at least $50,000 of such bonus to purchase, for itself or Cleveland,

common stock, par value $.001 per share, of the Company (the “Stock”) at a per

share purchase price equal to $0.26.

3.             Miscellaneous.

a.             Governing Law. 

This Amendment shall be governed by and construed in accordance with the

laws of the State of Delaware applicable to contracts made and to be performed

entirely within such State.

b.             Paragraph and Section Headings.  The headings of the sections and subsections

of this Amendment are inserted for convenience only and shall not be deemed to

constitute a part thereof.

 

 

c.             Severability. 

In the event that any part or parts of this Amendment shall be held

illegal or unenforceable by any court or administrative body of competent

jurisdiction, such determination shall not effect the remaining provisions of

this Amendment which shall remain in full force and effect.

d.             Counterparts. 

This Amendment may be executed in one or more counterparts, each of

which shall be deemed an original and all of which together shall be considered

one and the same agreement.

e.             Incorporation. 

This Amendment shall be deemed to be a part of the Agreement, and the

Agreement, as amended hereby, is hereby ratified, approved and confirmed in

each and every respect.  All references

to the Agreement in any other document, instrument, agreement or writing shall

hereafter be deemed to include the Agreement, as amended hereby.

IN WITNESS WHEREOF, the

parties have executed this Amendment as of the date first above written.

 

	

   

  	

  HAUSER, INC.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/  Thomas W. Hanlon

  	

   

  
	

   

  	

   

  	

  Name:  Thomas W. Hanlon

  	

   

  
	

   

  	

   

  	

  Title:  Chief Financial

  Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  KENNETH

  CLEVELAND ASSOCIATES, INC.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

    /s/  Kenneth C. Cleveland

  	

   

  
	

   

  	

   

  	

  Name:  Kenneth C. Cleveland

  	

   

  
	

   

  	

   

  	

  Title:  President

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  CLEVELAND:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

    /s/ 

  Kenneth C. Cleveland

  	

   

  
	

   

  	

   

  	

  Kenneth

  C. Cleveland

  	

   

  

 

 

2Exhibit

10.1

 

EXE

Technologies, Inc.

 

EMPLOYMENT

AGREEMENT

 

 

THIS EMPLOYMENT

AGREEMENT (the “Agreement”) is made as of the 13th day of May 2002

by and between Kenneth R. Vines, a resident of Texas (the “Employee”), and EXE

Technologies, Inc., a corporation organized and existing under the laws of the

State of Delaware (the “Company”) with its headquarters in Dallas, Texas.

 

WHEREAS, the

Company is engaged in the business of providing software for warehouse

management, supply chain execution, order fulfillment and inventory planning

and related services for warehouse, distribution and logistics facilities

worldwide (the “Business”),

 

WHEREAS, the

Company hired the Employee on May 13, 2002 (the “Start Date”) pursuant to a

Summary of Terms dated April 26, 2002 (the “Term Sheet”);

 

WHEREAS, the Term

Sheet contemplated that it would be superceded by a definitive employment

agreement;

 

WHEREAS, the

Company desires to employ the Employee and the Employee desires to be employed

by the Company for a period of time commencing on the Start Date and continuing

into the future upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in

consideration of the mutual covenants and obligations contained herein, and

intending to be legally bound, the parties, subject to the terms and conditions

set forth herein, agree as follows:

 

1.             Employment and Term.  The Company hereby employs the Employee and

the Employee hereby accepts employment with the Company for the position

detailed in Schedule A hereto, for a period of one (1) year from the Start Date

(the “Initial Term”).  At the end of the

Initial Term, this Agreement shall automatically renew for successive

additional periods of one (1) year, unless terminated by either party upon no

less than ninety (90) days prior written notice to the other party prior to the

expiration of the Initial Term or any such renewal period.   The Initial Term of employment and any

renewal periods hereunder, subject to the provisions of Section 8 hereof, are

hereinafter referred to as the “Term.”

 

2.             Duties.  During the Term, the Employee shall serve

the Company faithfully and to the best of the Employee’s ability devote his

full time, attention, skill and efforts to the performance of the duties

required by or appropriate for the Position.  The Employee shall report to the Chief Executive Officer (the “Reporting Manager”).  The Employee shall assume such duties and

responsi­bilities as may be customarily incident to such a position, and such

additional and other duties as may be assigned to the Employee from time to

time by the Reporting Manager or the Board of Directors of the Company (the

“Board”), including, without limitation, the duties and responsibilities set

forth in Schedule B attached hereto,

provided that such duties, functions, responsibilities, and authority are

reasonable and customary for a person serving as Senior Vice President and

Chief Financial Officer of an enterprise comparable to the Company.

 

3.             Other Business Activities.  During the Term, the Employee shall not,

without the prior written consent of the Company in its sole discretion,

directly or indirectly engage in any other business activities or pursuits

whatsoever, except: activities in connection with charitable or civic

activities; personal investments; serving as an executor, trustee or in other

similar fiduciary capacity; provided that such activities do not interfere in

any material respect with the Employee’s performance of the Employee’s

responsibilities and obligations pursuant to this Agreement; and provided

further that the Employee complies with all applicable policies and procedures

of the Company.  Notwithstanding the

foregoing, the Employee shall be permitted to remain an officer and a director

of Triton Network Systems, Inc. (“Triton”) until such time as Triton is able to

fully complete its previously announced liquidation program, provided that such

activities do not interfere in any material respect with the Employee’s

performance of the Employee’s responsibilities and obligations pursuant to this

Agreement.

 

4.             Compensation.  The Company shall pay the Employee, and the

Employee hereby agrees to accept, as compensation for all services rendered

hereunder and for the Employee’s intellectual property 

 

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covenants and

assignments and covenant not to compete as provided for in Sections 6 and 7

hereof, the compensation set forth in this Section 4.

 

4.1           Salary.  The Company shall pay the Employee an

initial base salary at the annual rate detailed in Schedule A attached hereto

(the “Base Salary”). The Base Salary shall be inclusive of all applicable

income, social security and other taxes and charges that are required by law to

be withheld by the Company or are requested to be withheld by the Employee.  Such amounts shall be withheld and paid in

accordance with the Company’s normal payroll practice for its similarly

situated employees from time to time in effect. The Base Salary may be increased from time to time by the

Compensation Committee of the Board in its discretion, provided, however, that at no time will the Employee’s salary be less

than the initial Base Salary.

 

4.2           Bonus Program.  With respect to each calendar year, the

Company will pay a bonus to the Employee, in cash and/or stock options in

accordance with the Company’s usual practices and in the discretion of the

Reporting Manager, based upon the achievement of criteria to be determined as

mutually agreed upon in writing by the Employee and the Reporting Manager.  The Employee’s annualized bonus target will

be fifty per cent (50%) of the Base

Salary.  The Employee’s actual

bonus payments will vary depending on Company performance and will be payable

in accordance with the Company’s usual practices and in the discretion of the

Reporting Manager.

 

4.3           Equity Participation.  The Company shall grant to the Employee a

stock option (the “Option”) to purchase shares of common stock of the Company

(“Common Stock”), the exercise price, par value and other details of which are

detailed in Schedule A attached hereto. The Option shall be subject to and in

accordance with the provisions of the 1997 Stock Option Plan of the Company, as

amended (the “Plan”), substantially in the form of Schedule C.

 

4.4            

Fringe Benefits.  The

Employee shall be entitled to participate in any health or dental programs or

other non-salary consideration (such as disability, vacation, sick leave) as

are Company standard, or as otherwise described in Schedule E attached hereto

and as such standards may be changed from time to time.

 

4.5            

Reimbursement of Expenses. 

The Employee shall be reimbursed for all normal items of travel and

entertainment and miscellaneous expenses reasonably incurred by the Employee on

behalf of the Company, provided that such expenses are documented and submitted

to the Company all in accordance with the reimbursement policies of the Company

as in effect from time to time.

 

4.6             Indemnification.  The Employee, in any capacity on behalf of

the Company or any of its subsidiaries or affiliates, shall be entitled to exculpation,

indemnification, and advancement of expenses to the fullest extent not

prohibited by Delaware or other applicable law, all as more fully described by

an Indemnification Agreement to be entered into between the Employee and the

Company substantially in the form used by the Company with its executive

officers. The Employee shall also be

entitled to coverage under each directors’ and officers’ liability insurance

policy, if any, maintained by or on behalf of the Company’s directors and

officers.

 

4.7             Attorneys’ Fees

to Negotiate Agreement. The Company shall pay, or reimburse Employee for,

the reasonable attorneys’ fees and expenses incurred in connection with the

Employee’s negotiation of this Agreement within thirty (30) days after

presentation of each invoice from the Employee’s attorneys; provided that such

fees shall be limited to $3,000.

 

5.             Confidentiality.  The Employee recognizes and acknowledges

that the Proprietary Information (as hereinafter defined) is a valuable,

special and unique asset of the Company. 

As a result, both during the Term and for a period of five (5) years

thereafter, the Employee shall not, without the prior written consent of the

Company, for any reason either directly or indirectly divulge to any

third-party or use for the Employee’s own benefit, or for any purpose other

than the exclusive benefit of the Company, any confidential, proprietary,

business and technical information or trade secrets of the Company or of any

subsidiary or affiliate of the Company (the “Proprietary Information”)

revealed, obtained or developed in the course of the Employee’s employment with

the Company.  Proprietary Information

shall include, but shall not be limited to: the intangible personal property

described in Section 6(b) hereof; any information relating to methods of

production, manufacture and research; hardware and software configurations,

computer codes or instructions (including source and object 

 

2

 

code listings,

program logic algorithms, subroutines, modules or other subparts of computer

programs and related documentation, including program notation), computer

inputs and outputs (regardless of the media on which stored or located) and

computer processing systems, techniques, designs, architecture, and interfaces;

the identities of, the Company’s relationship with, the terms of contracts and

agreements with, the needs and requirements of, and the Company’s course of

dealing with, the Company’s actual and prospective customers, contractors and

suppliers; and any other materials prepared by the Employee in the course of

the Employee’s employment by the Company, or prepared by any other employee or

contractor of the Company for the Company or its customers (including concepts,

layouts, flow charts, specifications, know-how, user or service manuals, plans,

sketches, blueprints, costs, business studies, business procedures, finances,

marketing data, methods, plans, personnel information, customer and vendor

credit information and any other materials that have not been made available to

the general public).  Nothing contained

herein shall restrict the Employee’s ability to make such disclosures during

the course of the Employee’s employment as may be necessary or appropriate to

the effective and efficient discharge of the duties required by or appropriate

for the Position or as such disclosures may be required by law.  Furthermore, nothing contained herein shall

restrict the Employee from divulging or using for the Employee’s own benefit or

for any other purpose any Proprietary Information that is readily available to

the general public so long as such information did not become available to the

general public as a direct or indirect result of the Employee’s breach of this

Section 5.  Failure by the Company

to mark any of the Proprietary Information as confidential or proprietary shall

not affect its status as Proprietary Information under the terms of this

Agreement.

 

6.             Property.

 

(a)           All right, title and interest in and

to Proprietary Information shall be and remain the sole and exclusive property

of the Company.  During the Term, the

Employee shall not remove from the Company’s offices or premises any documents,

records, notebooks, drawings, sketches, program listings, files,

correspondence, reports, memoranda or similar materials of or containing

Proprietary Information, or other materials or property of any kind belonging

to the Company unless necessary or appropriate in accordance with the duties

and responsibilities required by or appropriate for the Position and, in the

event that such materials or property are removed, all of the foregoing shall

be returned to their proper files or places of safekeeping as promptly as

possible after the removal shall serve its specific purpose.  The Employee shall not make, retain, remove

and/or distribute any copies of any of the foregoing for any reason whatsoever,

except as may be necessary in the discharge of the assigned duties, and shall

not divulge to any third person the nature of and/or contents of any of the

foregoing or of any other oral or written information to which the Employee may

have access or with which for any reason the Employee may become familiar,

except as disclosure shall be necessary in the performance of the duties; and

upon the earlier of (i) a request by the Company or (ii) the termination of the

Employee’s employment with the Company, the Employee shall return to the

Company all originals and copies of the foregoing then in the possession,

whether prepared by the Employee or by others.

 

(b)           (i)            The

Employee acknowledges that all right, title and interest in and to any and all

writings, documents, inventions, improvements, discoveries, methods,

developments, works of authorship, computer programs or instructions (whether

in source code, object code, or any other form and whether patentable or not),

algorithms, formulae, plans, memoranda, tests, research, designs, innovations,

systems, analyses, specifications, models, data, diagrams, flow charts, and/or

techniques (whether reduced to written or electronic form or otherwise) that

the Employee creates, makes, conceives, discovers, develops or reduces to

practice, either solely or jointly with any other person, on behalf of the

Company at any time during the Term, whether during working hours or at the

Company’s facility or at any other time or location, and that relate to or are

useful in any way in connection with the Business now or hereafter carried on

by the Company (collectively, “Intellectual Work Product”) shall be the sole

and exclusive property of the Company. 

The Employee shall promptly disclose to the Company all Intellectual

Work Product, and the Employee shall have no claim for additional compensation

for the Intellectual Work Product.  In

addition the Employee hereby waives all claims to moral rights in any

Intellectual Work Product.

 

                (ii)           The Employee acknowledges that all

the Intellectual Work Product that is copyrightable shall be considered a work

made for hire under United States Copyright Law.  To the extent that any copyrightable Intellectual Work Product

may not be considered a work made for hire under the applicable provisions of

the United States Copyright Law, or to the extent that, notwithstanding the

foregoing provisions, the Employee may retain an interest in any Intellectual

Work Product that is not copyrightable, the Employee hereby irrevocably assigns

and transfers to the Company any and all right, title, or interest that the

Employee may have in 

 

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the Intellectual

Work Product under copyright, patent, trade secret, trademark and other

intellectual property laws, in perpetuity or for the longest period otherwise

permitted by law, without the necessity of further consideration.  The Company shall be entitled to obtain and

hold in its own name all copyrights, patents, trade secrets, and trademarks

with respect thereto.

 

                                                                (iii)          The Employee shall reveal promptly all

information relating to the Intellectual Work Product to an appropriate officer

of the Company, cooperate with the Company and execute such documents as may be

necessary or appropriate (A) in the event that the Company desires to seek

copyright, patent, trademark or other analogous protection thereafter relating

to the Intellectual Work Product, and when such protection is obtained, renew

and restore the same, or (B) to defend any opposition proceedings in respect of

obtaining and maintaining such copyright, patent, trademark or other analogous

protection.

 

                                                                (iv)          In the event that the Company is

unable after reasonable effort to secure the Employee’s signature on any of the

documents referenced in Section 6(b)(iii) hereof, whether because of the

Employee’s physical or mental incapacity or for any other reason whatsoever,

the Employee hereby irrevocably designates and appoints the Company and its

duly authorized officers and agents as the Employee’s agent and

attorney-in-fact, to act for and in the Employee’s behalf and stead to execute

and file any such documents and to do all other lawfully permitted acts to

further the prosecution and issuance of any such copyright, patent, trademark

or other analogous protection with the same legal force and effect as if

executed by the Employee.

 

                                                                (v)           The Employee represents that the

innovations, designs, systems, analyses, ideas for marketing programs, and all

copyrights, patents, trademarks and trade names, or similar intangible personal

property identified on Schedule D hereof comprises all of the innovations,

designs, systems, analyses, ideas for marketing programs, and all copyrights,

patents, trademarks and trade names, or similar intangible personal property

that the Employee has made or conceived of prior to the date hereof, and same

are excluded from the operation of the other provisions of this Section 6(b).

 

7.             Covenant not to Compete.

 

(a)           In consideration of the compensation,

including but not limited to equity participation, and other covenants by the

Company under this Agreement, the Employee shall not, anywhere in the world,

during the Term and for a period of one (1) year thereafter (the “Restricted

Period”), do any of the following, either alone or in association with others,

without the prior written consent of the Company in its sole discretion:

 

(i)            engage or participate, directly or

indirectly, in any business whose primary or principal business derives thirty

percent (30%) or more of its gross revenues from providing software for

warehouse management, supply chain execution, order fulfillment and inventory

planning and related services for warehouse, distribution and logistics

facilities (a “Competitive Business”), including without limitation those

listed in Schedule A;

 

(ii)           become interested (as owner,

proprietor, promoter, stockholder, lender, partner, co-venturer, director,

officer, employee, agent, consultant or otherwise) in any person, firm,

corporation, association or other entity (A) that is listed in Schedule A, or

(B) is otherwise engaged in any Competitive Business, or become interested in

(as owner, stockholder, lender, partner, co-venturer, director, officer,

employee, agent, consultant or otherwise) any portion of the business of any

person, firm, corporation, association or other entity where such portion of

such business is considered a Competitive Business (notwithstanding the

foregoing, the Employee may hold not more than one percent (1%) of the

outstanding securities of any class of any publicly-traded securities of a

company that is engaged in activities referenced in Section 7(a)(i) hereof);

 

(iii)          solicit or call on for a purpose

competitive with the Business, either directly or indirectly, any (A) customer

with whom the Company shall have dealt at any time during the one (1) year

period immediately preceding the termination of the Employee’s employment

hereunder, or (B) supplier or distributor with whom the Company shall have

dealt at any time during the one (1) year period immediately preceding the

termination of the Employee’s employment hereunder;

 

(iv)          influence or attempt to influence any

supplier, distributor, customer or

 

4

 

potential customer

of the Company to terminate or modify any written or oral agreement or course

of dealing with the Company; or

 

(v)           influence or attempt to influence any

person either (A) to terminate or modify in any material respect the employment, consulting, agency,

distributorship or other arrangement with the Company, or (B) to employ or

retain, or arrange to have any other person or entity employ or retain, any

person who has been employed or retained by the Company as an employee,

consultant, agent or distributor of the Company at any time during the one (1)

year period immediately preceding the termination of the Employee’s employment

hereunder.

 

(b)           The Employee hereby acknowledges that

the limitations as to time, character or nature and geographic scope placed on

the Employee’s subsequent employment by this Section 7 are reasonable and fair

and will not prevent or materially impair the Employee’s ability to earn a

livelihood.

 

8.             Early Termination.  The Employee’s employment hereunder may be

terminated during the Term upon the occurrence of any one of the events

described in this Section 8.  Upon

termination, the Employee shall be entitled only to such compensation and

benefits as described in this Section 8.

 

8.1           Termination for Disability.

 

(a)           In the event of the disability of the

Employee such that the Employee is unable to perform the duties and

responsibilities hereunder to the full extent required by this Agreement by

reasons of illness, injury or incapacity for a period of more than sixty (60)

consecutive days or more than forty-five (45) days, in the aggregate, during

any ninety (90) day period (“Disability”), the Employee’s employment hereunder

may be terminated by the Company.

 

(b)           In the event of a termination of the

Employee’s employment hereunder pursuant to Section 8.1(a), the Employee will receive: 

(i) continuation of the Base Salary in effect as of the date of

such termination for a period of six

(6) months following the date of termination, payable on the Company’s standard

payroll cycle; (ii) the Employee’s annual bonus based upon the Employee’s

current annualized target bonus on the date of termination prorated to the date

expiring six (6) months after the date of termination which shall be paid in a

lump-sum thirty (30) days following the date of termination; (iii) the right to

exercise any stock option held by Employee for the reminder of its term,

whether or not exercisable by Employee as of the date of termination; (iv) any

amounts payable pursuant to any plans or policies of the Company; and (v) any

other amounts due but not yet paid from the Company to Employee.

 

 

8.2           Termination by Death. In the

event that the Employee dies during the Term, the Employee’s employment hereunder

shall be terminated thereby and the Employee’s executors, legal representatives

or administrators shall be entitled to

receive from the Company:  (i) the

Employee’s Base Salary in effect as of the date of death for a period of six

(6) months following the date of death, which shall be paid in a lump-sum

thirty (30) days following the date of death; (ii) the Employee’s annual bonus

based upon the Employee’s current annualized target bonus on the date of

termination prorated to the date expiring six (6) months after the date of

termination which shall be paid in a lump-sum thirty (30) days following the

date of termination; (iii) the right to exercise any stock option held by

Employee on the date of death for the remainder of its term, whether or not

exercisable by Employee on the date of death; (iv) any amounts payable on death

pursuant to any plans or policies of the Company; and (v) any other amounts due

but not yet paid from the Company.

 

8.3           Termination for Cause.

 

(a)           The Company may terminate the

Employee’s employment hereunder at any time for “Cause” upon written notice to

the Employee.  For purposes of this

Agreement, “Cause” shall only mean:

 

                (i)          any material breach by the Employee of any of the Employee’s obligations under this Agreement

after Employee has received a written demand for performance from the Company

which specifically sets forth the factual basis for the Company’s belief that

Employee breached this 

 

5

 

Agreement and, provided

that a cure is possible, affords Employee a period of ten (10) days to cure;

 

                                                                                (ii)         willful failure or repeated inability by the Employee to

perform satisfactorily the duties required by or appropriate for the Position,

as determined by the Chief Executive Officer of the Company and the Board of

Directors of the Company in his and its sole reasonable discretion after

Employee has received a written demand for performance from the Company which

specifically sets forth the factual basis for the Company’s belief that

Employee has not substantially performed his duties and affords Employee a

period of ten (10) days to cure;

 

                                                                                (iii)        conduct of the Employee involving any

(A) type of disloyalty to the Company that has a material detrimental effect on

the Company or, (B ) willful and

material misconduct with respect to the Company, including without limitation

fraud, embezzlement, theft or proven dishonesty in the course of the

employment, or (C) any attempt by the Employee to secure any personal profit

related to the Business and the business opportunities of the Company without

the informed approval of the Board of Directors;

 

                                                                                (iv)       conviction of a felony or other

criminal act punishable by more than one (1) year in prison;

 

                                                                                (v)        commission by the Employee of an

intentional tort or an act involving moral turpitude or constituting fraud; or

 

                                                                                (vi)          habitual alcohol or substance abuse or

addiction.

 

 

                                                                (b)

          In the event of a termination of

the Employee’s employment hereunder pursuant to Section 8.3(a), the Employee

shall be entitled to receive all accrued but unpaid (as of the effective date

of such termination) Base Salary, benefits and bonuses.  All Base Salary, benefits and bonuses shall

cease at the time of such termination, subject to the terms of any benefit or

compensation plan then in force and applicable to the Employee.  All options, including any vested or

unvested portion thereof, shall be canceled at the time of such termination,

and the Employee shall not be entitled to exercise any unvested options.  Except as specifically set forth in this

Section 8.3, the Company shall have no liability or obligation hereunder by

reason of such termination.

 

8.4           Termination Without Cause.

 

                                                                (a)           The Company may terminate the

Employee’s employment hereunder at any time, for any reason, without Cause,

effective upon the date designated by the Company upon three (3) months written

notice to the Employee.

 

                                                                (b)           In the event of a termination of the

Employee’s employment hereunder pursuant to Section 8.4(a), the Employee shall

be entitled to receive (i) all unpaid Base Salary through the date of

termination and all accrued, but unpaid (at the date of termination) benefits

and bonuses; (ii) severance equal to three (3) months Base Salary (at the date

of termination), payable in three (3) equal monthly installments in accordance

with the Company’s payroll practices; (iii) the Employee’s annual bonus based

upon the Employee’s current annualized target bonus on the date of termination

prorated to the date expiring three (3) months after the date of termination

which shall be paid in a lump-sum thirty (30) days following the date of

termination; (iv) the immediate vesting of the unvested portion of the Option

that would have vested if the Employee had continued to be employed by the

Company for a period of three (3) months following his actual termination date;

(v) the right to exercise any stock option which is exercisable by Employee on

the date of the termination of his employment; and (vi) any other amounts due

but not yet paid from the Company to Employee. 

Except as set forth above, all Base Salary, benefits and bonuses shall

cease at the time of such termination, subject to the terms of any benefit or

compensation plan then in force and applicable to the Employee.  Except as specifically set forth in this

Section 8.4, the Company shall have no liability or obligation hereunder by

reason of such termination.

 

                                                                (c)           In the event of (i) a Change in

Control as defined in Section 8.7 below, or (ii) a person other than Ray Hood

is the Company’ s Chief Executive Officer and the Employee is terminated under

this Section 8.4 within twelve (12) months of the date Ray Hood is no longer

the Company’s Chief Executive Officer, then the notice period under Section

8.4(a) and the three (3) month time periods referred to in Section 

 

6

 

8.4(a)(ii), (iii) and (iv) shall be changed

to three (3) months and nine (9) months, respectively.

 

8.5.

      Termination by the Employee for

Good Reason.

 

(a)           The

Employee may terminate the Employee’s employment hereunder at any time for

“Good Reason” following a written notice of the termination of employment

hereunder pursuant to this Section 8.5(a), as more fully described below.

 

(b)        For

purposes of this Agreement, “Good Reason” shall mean:

 

(i)            (1) any reduction by the Company in the Base Salary as in

effect on the date hereof or as the same may be increased from time to time;

(2) any reduction in bonus compensation opportunities (which reduction may also

occur pursuant to any assignment of performance goals and corresponding awards

which are inconsistent with prior performance goals or awards); (3) the failure

by the Company to continue in effect any benefit or compensation plan, life

insurance plan, health and accident plan or disability plan in which the

Employee was participating, which would adversely affect the Employee’s

participation in or materially reduce the Employee’s benefits under any of such

plans, (unless such reduction is pursuant to the general change in benefits

applicable to all similarly situated employees of the Company); (4) taking of

any action by the Company that would adversely affect the Employee’s

participation in or materially reduce the Employee’s benefits under any of such

plans (unless such reduction is pursuant to the general change in benefits

applicable to all similarly situated employees of the Company); (5) deprive the

Employee of any material fringe benefit enjoyed by the Employee;  (6) the failure by the Company to provide

the Employee with the number of paid vacation days to which the Employee is

entitled; or (7) the transfer of Employee’s principal place of employment to a

location more than 25 miles away from the Company’s current headquarters;

 

(ii)           (1) assignment to Employee of any duties and

responsibilities inconsistent with his status as Senior Vice President and

Chief Financial Officer of the Company; (2) a change in Reporting Managers such

that the Employee no longer directly reports to the Chief Executive Officer of

the Company; or (3) the assignment of duties and responsibilities which are not

customary for a person serving as Senior Vice President and Chief Financial

Officer of an enterprise comparable to the Company;

 

(iii)          any material and willful breach of the

Company of any provision of this Agreement or any written employment agreement

with Employee; or

 

(iv)          a Change in Control as defined in

Section 8.7 below.

 

(c)           A

Termination for Good Reason, except pursuant to a Change of Control, shall not

take effect until the following has occurred:

 

(i)            the Employee has given the Board of Directors written

notice of his intention to terminate his employment for Good Reason, specifying

with particularity the grounds on which the proposed Good Reason Termination is

contemplated;

 

(ii)           the Board of Directors shall have thirty (30) days after

such written notice to cure such grounds; and

 

(iii)          if the Board of Directors fails to cure such grounds, then

the Employee may terminate his employment by giving written notice to the Board

of Directors confirming that the grounds has not been cured, whereupon the

Employee’s employment shall terminate.

 

(d)           In

the event of a termination of the Employee’s employment hereunder pursuant to

Section 8.5(a) hereof, the Employee shall be entitled to receive the same

consideration set forth in Section 8.4(b) hereof.

 

8.6           Options; Repurchase of Shares.

 

Except as otherwise

permitted herein, upon the termination of the Employee’s

 

7

 

employment pursuant to this Section 8 for any reason,

all further vesting on all stock options and/or restricted stock in the Company

held by the Employee shall immediately cease as of such date and thereafter any

vested stock options shall be exercisable and any restricted stock or other

equity securities held by the Employee shall be subject to repurchase by the

Company in accordance with their respective terms and the terms of any related

agreements between the Company and the Employee.

 

8.7           Change

of Control.

 

(a)           Notwithstanding anything to the contrary and

in addition to any other rights contained in this Agreement, fifty percent

(50%) of the Employee’s then remaining unvested options shall automatically

become vested immediately prior to the occurrence of a Change in Control of the

Company.

 

(b)           Notwithstanding

anything to the contrary and in addition to any other rights contained in this

Agreement, if the Employee’s

employment is terminated by the Company without Cause or by the Employee for Good Reason within twelve (12) months

following a Change of Control, then, in addition to the consideration set forth

in Section 8.4(b) hereof, all of the Employee’s

then remaining unvested options shall automatically become vested immediately.

 

 (c)          For

the purposes of this Agreement, a “Change

of Control” shall mean:  (i) the sale, transfer, assignment or other

disposition (including by merger or consolidation) by stockholders of the

Company, in one transaction or a series of related transactions, of a majority

of the voting power represented by the then outstanding capital stock of the

Company to one or more stockholders or other third parties, other than any such

sales, transfers, assignments or other dispositions by such stockholders to

their respective heirs or affiliates, such that the then existing shareholders

of the Company do not own more than thirty-three percent (33%) of the

outstanding equity; or (ii) a sale, transfer, assignment or other disposition

(including by merger or consolidation), of all of the outstanding stock of the

Company, or of all or substantially all of the assets of the Company or a

liquidation or dissolution of the Company.

 

8.8           No

Mitigation or Offset

 

                                                                The

Employee shall not be obligated to seek or secure new employment or to become

self-employed after termination of his employment with the Company, but shall

be obligated to report promptly to the Company any actual employment obtained

during the period for which Employee benefits continue.  There shall be no offset against any amounts

due to Employee under this Agreement on account of any remuneration or benefits

attributable to any subsequent employment (including, without limitation, any

self-employment) that Employee may obtain.

 

9.             Representations, Warranties and

Covenants of the Employee.

 

 (a)          The

Employee represents and warrants to the Company that:

 

(i)            There are no restrictions,

agreements or understandings whatsoever to which the Employee is a party which

would prevent or make unlawful the Employee’s execution of this Agreement or

the Employee’s employment hereunder, or which is or would be inconsistent or in

conflict with this Agreement or the Employee’s employment hereunder, or would

prevent, limit or impair in any way the performance by the Employee of the

obligations hereunder; and

 

(ii)           The Employee has disclosed to the

Company all restraints, confidentiality commitments or other employment

restrictions that the Employee has with any other employer, person or entity.

 

(b)           Upon and after the Employee’s

termination or cessation of employment with the Company and until such time as

no obligations of the Employee to the Company hereunder exist, the Employee

(i) shall provide a complete copy of this Agreement to any prospective

employer or other person, entity or association in the Business, with whom or

which the Employee proposes to be employed, affiliated, engaged, associated or

to establish any business or remunerative relationship prior to the

commencement thereof and (ii) shall notify the Company of the name and address

of any such person, entity or association prior to the Employee’s 

 

8

 

employment,

affiliation, engagement, association or the establishment of any business or

remunerative relationship.

 

10.           Survival of Provisions.  The provisions of this Agreement set forth

in Sections 5 through 22 hereof

shall survive the termination of the Employee’s employment hereunder.

 

11.           Successors and Assigns.  This Agreement shall inure to the benefit of

and be binding upon the Company and the Employee and their respective

successors, executors, administrators, heirs and/or permitted assigns; provided

that neither the Employee nor the Company may make any assignments of this

Agreement or any interest herein, by operation of law or otherwise, without the

prior written consent of the other parties hereto, except that, without such

consent, the Company may assign this Agreement to any successor to all or

substantially all of its assets and business by means of liquidation,

dissolution, merger, consolidation, transfer of assets, or otherwise, provided

that such successor assumes in writing all of the obligations of the Company

under this Agreement.

 

12.           Notice.  Any notice hereunder by either party shall

be given by personal delivery or by sending such notice by certified mail,

return-receipt requested, or by overnight delivery with a reputable courier

service, or telecopied, addressed or telecopied, as the case may be, to the

other party at its address set forth below or at such other address designated

by notice in the manner provided in this section.  Such notice shall be deemed to have been received upon the date

of actual delivery if personally delivered or, in the case of mailing, two (2)

days after deposit with the U.S. mail, or if by overnight delivery, the date of

delivery or, in the case of facsimile transmission, when confirmed by the

facsimile machine report.

 

If to the

Employee:

 

                Kenneth R. Vines

                6905 Whisperfield

                Plano, TX  75024

                Fax:  214-775-0912

 

with a copy to:

 

Daniel W. Rabun

Baker & McKenzie

2001 Ross Avenue

Suite 2300

Dallas, Texas 75201

Fax: 214-978-3099

 

If to the Company:

 

EXE Technologies,

Inc.

8787 Stemmons

Freeway

Dallas, TX  75247

Attention:  CEO

Fax:  214-775-0912

 

with a copy to:

 

EXE Technologies,

Inc.

300 Baldwin Tower

Boulevard

Eddystone, PA

19022

Attention:  General Counsel

Fax:  610-447-1824

 

13.           Entire Agreement; Amendments.  This Agreement contains the entire agreement

and understanding of the parties hereto relating to the subject matter hereof,

and merges and supersedes all prior and contemporaneous discussions, agreements

and understandings of every nature between the parties hereto relating

 

9

 

to the employment

of the Employee with the Company, including but not limited to, the Term

Sheet.  This Agreement may not be

changed or modified, except by an agreement in writing signed by each of the

parties hereto.

 

14.           Waiver.  The waiver of the breach of any term or

provision of this Agreement shall not operate as or be construed to be a waiver

of any other or subsequent breach of this Agreement.

 

15.           Governing Law.  This Agreement shall be construed and

enforced in accordance with the laws of the State of Texas, without regard to

the principles of conflicts of laws of any jurisdiction.

 

16.           Invalidity.  If any provision of this Agreement shall be

determined to be void, invalid, unenforceable or illegal for any reason, then

the validity and enforceability of all of the remaining provisions hereof shall

not be affected thereby.  If any

particular provision of this Agreement shall be adjudicated to be invalid or

unenforceable, then such provision shall be deemed amended to delete therefrom

the portion thus adjudicated to be invalid or unenforceable, such amendment to

apply only to the operation of such provision in the particular jurisdiction in

which such adjudication is made; provided that if any provision contained in

this Agreement shall be adjudicated to be invalid or unenforceable because such

provision is held to be excessively broad as to duration, geographic scope,

activity or subject, then such provision shall be deemed amended by limiting

and reducing it so as to be valid and enforceable to the maximum extent

compatible with the applicable laws of such jurisdiction, such amendment only

to apply with respect to the operation of such provision in the applicable

jurisdiction in which the adjudication is made.

 

17.           Section Headings.  The section headings in this Agreement are

for convenience only; they form no part of this Agreement and shall not affect

its interpretation.

 

18.           Number of Days.  In computing the number of days for purposes

of this Agreement, all days shall be counted, including Saturdays, Sundays and

legal holidays; provided that if the final day of any time period falls on a

Saturday, Sunday or day which is a legal holiday in Texas, then such final day

shall be deemed to be the next day which is not a Saturday, Sunday or legal

holiday.

 

19.           Specific Enforcement; Extension of

Period.

 

(a)           The Employee acknowledges that the

restrictions contained in Sections 5, 6, and 7 hereof are reasonable and

necessary to protect the legitimate interests of the Company and its affiliates

and that the Company would not have entered into this Agreement in the absence

of such restrictions.  The Employee also

acknowledges that any breach by the Employee of Sections 5, 6, or 7 hereof will

cause continuing and irreparable injury to the Company for which monetary damages

would not be an adequate remedy.   The

Employee shall not, in any action or proceeding to enforce any of the

provisions of this Agreement, assert the claim or defense that an adequate

remedy at law exists.  In the event of

such breach by the Employee, the Company shall have the right to enforce the

provisions of Sections 5, 6, and 7 of this Agreement by seeking injunctive or

other relief in any court, and this Agreement shall not in any way limit

remedies of law or in equity otherwise available to the Company.

 

(b)           The periods of time set forth in

Sections 5, 6 and 7 hereof shall not include, and shall be deemed extended by,

any time required for litigation to enforce the relevant covenant periods,

provided that the Company is successful on the merits in any such

litigation.  The “time required for

litigation” is herein defined to mean the period of time commencing on the

earlier of the Employee’s first breach of such covenants or the service of

process upon the Employee ending on the expiration of all appeals related to

such litigation.

 

20.       

Arbitration.  Except for claims

or disputes related to the rights and obligations of the parties set forth in

Sections 5, 6 and 7 hereof, the parties hereto agree that any controversy or

claims arising out of or relating to this Agreement shall be settled

exclusively by arbitration in accordance with the National Rules for the

Resolution of Employment Disputes of the American Arbitration Association

(“AAA”) as then in effect.  The parties

hereto further agree that any arbitration proceeding commenced in connection

with this Agreement shall take place in Dallas, Texas under the auspices of the

AAA and judgment upon the award rendered by the Arbitrator(s) may be entered in

any court having jurisdiction thereof. 

The prevailing party shall be entitled to recover, in addition to any

other relief, reasonable attorneys’ fees, costs and disbursements.

 

10

 

21.           Consent to Suit.  In the case of any dispute under or in

connection with this Agreement, the Employee may only bring suit against the

Company in the Courts of the State of Texas in and for the County of Dallas or

in the Federal District Court for such geographic location.  The Employee hereby consents to the

jurisdiction and venue of the courts of the State of Texas in and for the

County of Dallas or the Federal District Court for such geographic location,

provided that such Federal Court has subject matter jurisdiction over such

dispute, and the Employee hereby waives any claim she may have at any time as

to forum  non  conveniens with respect to such venue.  The Company shall have the right to

institute any legal action arising out of or relating to this Agreement in any

appropriate court and in any jurisdiction. 

Any judgment entered against either of the parties in any proceeding

hereunder may be entered and enforced by any court of competent

jurisdiction.  If an action at law or in

equity is necessary to enforce or interpret the terms of this Agreement, then

the prevailing party shall be entitled to recover, in addition to any other

relief, reasonable attorneys’ fees, costs and disbursements.

 

                                22.           Counterparts.  This Agreement may be executed in one or

more counterparts, each of which shall be deemed an original, and all of which

together shall be deemed to be one and the same instrument.

 

                                IN WITNESS

WHEREOF, the parties have caused this Agreement to be executed on the day and

year first written above.

 

 

	

  EXE TECHNOLOGIES, INC.

  
	

   

  
	

   

  
	

  By:  /s/ Raymond R. Hood

  
	

   

  
	

  Title:  Chief

  Executive Officer

  
	

   

  
	

   

  
	

  /s/ Kenneth R. Vines

  
	

   

  
	

  EMPLOYEE

  

 

11

 

SCHEDULE A

 

EMPLOYMENT and COMPENSATION

 

 

	

  Position:

  	

  Through May 14, 2002, Director of Finance

  
	

   

  	

  Thereafter, Senior Vice President, Chief Financial

  Officer and Treasurer

  
	

   

  	

   

  
	

  Reporting

  Manager:

  	

  CEO

  
	

   

  	

   

  
	

  Start

  Date:

  	

  May 13, 2002

  
	

   

  	

   

  
	

  Base

  Salary:

  	

  $225,000

  
	

   

  	

   

  
	

  Bonus:

  	

  50% of Base Salary, based upon written criteria to be

  developed by the Reporting Manager and the Employee

  
	

   

  	

   

  
	

  Responsibilities:

  	

  Job Description attached as Schedule B

  
	

   

  	

   

  
	

  Prohibited

  Companies:

  	

  Manhattan Associates, Optum, TRW/Marc, Provia,

  Irista, High Jump, V3, Retek, Catalyst, OMI, McHugh Software, SAP supply

  chain unit and Oracle supply chain unit.

  

 

 

Initial Stock Option Grant:

 

A stock

option to purchase 250,000 shares of Common Stock, par value $.01 per share, of

the Company was granted to the Employee on the Start Date.  The Option grant shall be an incentive stock

option to the maximum extent permitted by law. The exercise price is $1.52 per

share.  The vesting will be as follows:

 

(a) 62,500 shares

on the first anniversary of the Start Date; and

 

(b) the remaining

187,500 shares at a rate of 2.0833% per month on the last day of each month

beginning June 30, 2003.

 

 

A-1

 

                                                                                           SCHEDULE B

 

RESPONSIBILITIES

 

 

 

JOB DESCRIPTION

 

[TO BE

ADDED]

 

B-1

 

SCHEDULE C

 

EXE TECHNOLOGIES, INC.

 

1997 INCENTIVE AND

NON-QUALIFIED STOCK OPTION PLAN

 

 [PREVIOUSLY PROVIDED]

 

C-1

SCHEDULE D

 

 

PRIOR INVENTIONS

 

None.

 

D-1

 

SCHEDULE E

NON SALARY CONSIDERATION

 

 

 

	

  1.

  	

  Holidays - 10 paid.

  
	

   

  	

   

  
	

  2.

  	

  Vacation - 4 weeks.

  
	

   

  	

   

  
	

  3.

  	

  Medical Plan — Employer/Employee paid.

  
	

   

  	

   

  
	

  4.

  	

  Dental Plan — Employer/Employee paid.

  
	

   

  	

   

  
	

  5.

  	

  Life Insurance/AD&D - equal to $50,000 —

  Employer paid.

  
	

   

  	

   

  
	

  6.

  	

  Vision plan —

  Employer paid — provides 20% to 60% discount on all vision services.

  
	

   

  	

   

  
	

  7.

  	

  Flexible Benefit

  Plan - enables employees to set aside pre-tax dollars for the reimbursement

  of certain qualified expenses.

  
	

   

  	

   

  
	

  8.

  	

  Short-term

  Disability — Employer paid - provides potential salary continuation to

  regular, full-time employees who are unavoidably absent from work due to

  personal illness injury or pregnancy.

  
	

   

  	

   

  
	

  9.

  	

  Long-term

  Disability — Employer paid - provides income protection in the event of a

  long-term disability, equal to 60% of basic monthly earnings.

  
	

   

  	

   

  
	

  10.

  	

  401(k) Plan -

  permits deferral of pre-tax dollars up to 15% of salary.  Company matches 100% of first 5%

  contribution.

  
	

   

  	

   

  
	

  11.

  	

  Tuition

  Assistance — provides educational reimbursement benefits to eligible

  employees.

  

 

E-1

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