Document:

Exhibit 10.2

 

THIS AGREEMENT IS SUBJECT TO ARBITRATION

 

	
  STATE OF TEXAS

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF DALLAS

  	
  §

  

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”)
is made and entered into as of the 31st day
of December, 2008, but effective as of December 31, 2008, by and between
DG FastChannel, Inc., a Delaware corporation (the “Corporation”),
and Neil Nguyen (the “Employee”).

 

WHEREAS, the Corporation and Employee are parties to an Amended and
Restated Employment Agreement (the “Prior Agreement”) made and entered
into as of the 30th day of August, 2006 and effective as of July 1,
2006, which sets forth the terms and conditions of Employee’s employment with
the Corporation; and

 

WHEREAS, the Corporation and Employee desire to further amend and
restate the Prior Agreement on the terms and conditions as set forth herein;

 

NOW, THEREFORE, the parties hereto, in consideration of the mutual
covenants and promises hereinafter contained, do hereby agree as follows:

 

1.            
Employment.  The Corporation hereby employs Employee in the
capacity of Executive Vice President — Sales and Operations, or in
such other position of the same or greater stature as the Corporation may
direct or desire, and Employee hereby accepts the employment, on the terms and
subject to the conditions hereinafter set forth.

 

2.            
Duties.  The Employee’s principal duties and responsibilities shall
be to manage the Corporation’s sales and operations personnel or such other
duties consistent with his position reasonably assigned to Employee from time
to time by the Chief Executive Officer.  Employee agrees to perform such
services and duties and hold such offices as may be reasonably assigned to him
from time to time by the Corporation, consistent with his position, and to
devote substantially his full time, energies and best efforts to the
performance thereof to the exclusion of all other business activities, except
any other activities as the Corporation may consent to in writing.  As the
Corporation’s Executive Vice President — Sales and Operations, all
operation and sales personnel shall report to Employee.

 

3.            
Term.  The term of employment hereunder shall begin on the
effective date hereof and continue until December 31, 2011 unless earlier
terminated as herein provided.

 

4.            
Salary and Other Compensation.  As compensation for the services to
be rendered by the Employee to the Corporation pursuant to this Agreement, the
Employee shall be paid the following compensation and other benefits:

 

 

(a)          
Base Salary.  $335,000 for the twelve months ending December 31,
2009, $345,000 for the twelve months ending December 31, 2010 and $355,000
for the twelve months ending December 31, 2011, each payable in equal bi-weekly
installments or in accordance with the Corporation’s then standard practices,
or such higher compensation as may be established by the Corporation from time
to time (“Base Salary”).  Any increase in Base Salary shall
automatically amend this Agreement to provide thereafter that Employee’s Base
Salary shall not be less then the annual amount to which the Base Salary has
been increased.  If the Employee, during any period of Partial Disability,
receives any periodic payments representing lost compensation under any health
and accident policy or under any salary continuation insurance policy, the
premiums for which have been paid by the Corporation, the amount of salary that
the Employee would be entitled to receive from the Corporation during the Partial
Disability shall be decreased by the amounts of such payments.  “Partially
Disabled,” for purposes of this subsection, means the inability because of any
physical or emotional illness to perform his assigned duties under this
Agreement for forty (40) hours per week.

 

(b)          
Bonus.  Employee shall be eligible to receive an annual bonus in an
amount up to $140,000 per year, with the criteria upon which any bonus would be
awarded to be determined in the sole discretion of the Compensation Committee (or
other applicable committee) of the Board of Directors (the “Compensation
Committee”) based in part on revenue and EBITDA goals. Any annual bonus
that becomes payable pursuant to this Section 4(b) shall be paid
between January 1 and March 15th of the year following the year for
which such annual bonus was earned; provided, however, in no event will the
bonus be paid after December 31 of the year following the year for which
such annual bonus was earned.

 

(c)          
Stock Options.  The Employee will be awarded a stock option
covering 200,000 shares of the Corporation’s common stock, under the
Corporation’s stock incentive plan, at an exercise price equal to the fair
market value of the Corporation’s common stock on the grant date, as determined
by the Compensation Committee.  In
addition, the Employee may receive additional awards under such stock incentive
plan as the Compensation Committee may determine from time to time, subject to
any limitation as may be provided by applicable law or regulation or the terms
of the stock incentive plan.  All
outstanding stock options held by or on behalf of the Employee shall become
fully vested and exercisable upon the occurrence of a change in control of the
Corporation (as defined in the applicable stock option agreement or related
plan document).

 

(d)          
Car Allowance.  The Corporation shall pay to the Employee a car
allowance in an amount equal to $500 per month, in arrears, during the
Employment Term payable pursuant to the Corporation’s customary payroll practices.

 

(e)          
Employee Benefit Plans. The Employee shall be eligible to participate,
to the extent he may be eligible, in any profit sharing, retirement, insurance
or other employee benefit plan maintained by the Corporation.

 

 

5.            
Life and Health Insurance.  The Corporation, in its discretion, may
apply for and procure in its own name and for its own benefit, life insurance
on the life of the Employee in any amount or amounts considered advisable by
the Corporation, and the Employee shall submit to any medical or other
examination and execute and deliver any application or other instrument in
writing, reasonably necessary to effectuate such insurance.  The
Corporation shall provide health insurance, including major medical coverage, for
the Employee, as described in the “DG Medical Options” schedule, a copy of
which has been provided to the Employee, which schedule may be modified from
time to time in the discretion of the Corporation.  The Corporation shall
be obligated to bear the expenses of the coverage contemplated by the previous
sentence, to the extent provided in such schedule.

 

6.            
Expenses.  The Corporation shall pay, or reimburse the Employee,
for the reasonable and necessary business expenses of the Employee.

 

7.            
Vacations and Leave.  The Employee shall be entitled to four (4) weeks
paid vacation per year to
be accrued in accordance with the Corporation’s vacation policy in effect from
time to time.

 

8.            
Non-Disclosure of Confidential Information.  The Employee
acknowledges that in and as a result of his employment by the Corporation, he
will be making use of, acquiring, and/or adding to confidential information of
a special and unique nature and value relating to such matters as the Corporation’s
patents, copyrights, proprietary information, trade secrets, systems,
procedures, manuals, confidential reports, and lists of customers (which are
deemed for all purposes confidential and proprietary), as well as the nature
and type of services rendered by the Corporation, the equipment and methods
used and preferred by the Corporation’s customers, and the fees paid by
them.  As a material inducement to the Corporation to enter into this
Agreement and to pay to Employee the compensation stated in Section 4,
Employee covenants and agrees that he shall not, at any time during or for
three (3) years following the term of his employment, directly or
indirectly divulge or disclose for any purpose whatsoever any confidential
information that has been obtained by, or disclosed to, him as a result of his
employment by the Corporation.

 

9.            
Reasonableness of Restrictions

 

(a)          
The Employee has carefully read and considered the provisions of Section 8,
and, having done so, agrees that the restrictions set forth in that Section are
fair and reasonable and are reasonably required for the protection of the
interests of the Corporation and its parent or subsidiary corporations,
officers, directors, shareholders, and other Employees.

 

(b)          
In the event that, notwithstanding the foregoing, any of the provisions of Section 8
shall be held to be invalid or unenforceable, the remaining provisions thereof
shall nevertheless continue to be valid and enforceable as though the invalid
or unenforceable parts had not been included therein.  In the event that
any provision of Section 8 shall be declared by a court of competent
jurisdiction to exceed the maximum restrictiveness such court deems reasonable
and enforceable, the time period and/or areas of restriction and/or related
aspects deemed reasonable and enforceable by the court shall

 

 

become and thereafter be the maximum
restriction in such regard, and the restriction shall remain enforceable to the
fullest extent deemed reasonable by such court.

 

10.           Remedies
for Breach of Employee’s Covenants of Non-Disclosure.  In the event of
a breach or threatened breach of any of the covenants in Section 8, the
Corporation shall have the right to seek monetary damages for any past breach
and equitable relief, including specific performance by means of an injunction
against the Employee or against the Employee’s partners, agents,
representatives, servants, employers, employees, family members and/or any and
all persons acting directly or indirectly by or with him, to prevent or
restrain any such breach.

 

11.           Termination. 
Employment of the Employee under this Agreement may be terminated:

 

(a)          
By the Employee’s death.

 

(b)          
If the Employee is Totally Disabled.  For the purposes of this Agreement,
the Employee will be totally disabled if he is “totally disabled” as defined in
and for the period necessary to qualify for benefits under any disability
income insurance policy and any replacement policy or policies covering Employee
and the Employee has been declared to be totally disabled by the insurer for a
period of three (3) consecutive months.  At a minimum, “totally
disabled” shall mean that employee is unable to perform substantially all of
his current duties for a continuous period of three (3) consecutive
months, subject to compliance with all applicable state and federal laws
relating to any requirement the Corporation may have to accommodate any such
disability.

 

(c)          
By mutual agreement of the Employee and the Corporation.

 

(d)          
By the dissolution and liquidation of the Corporation (other than as part of a
reorganization, merger, consolidation or sale of all or substantially all of
the assets of the Corporation whereby the business of the Corporation is
continued).

 

(e)          
By the Corporation for Just Cause.  This Agreement and the Employee’s
employment with the Corporation may be terminated for Just Cause at any time in
accordance with Section 11(f).  For purposes of this Agreement “Just
Cause” shall mean only the following:  (i) habitual neglect of his
material duties or failure to perform his material obligations under this
Agreement, (ii) refusal or failure to follow lawful directives of the
Board, (iii) commission of an act of fraud, theft, or embezzlement, or (iv) conviction
of a felony or other crime involving moral turpitude; provided, however,
that Employee shall have thirty (30) days after written notice from the
Corporation or its Board of Directors to remedy any actions alleged under subsection
(i) or (ii) in the manner reasonably specified by the Board of
Directors (or Compensation Committee thereof).  Should the Employee
dispute whether he was terminated for Just Cause, then the Corporation and the
Employee shall enter immediately into binding arbitration pursuant to the
Commercial Arbitration Rules of the American Arbitration Association, the
cost of which shall be borne by the non-prevailing party.

 

 

(f)          
Notice of Termination.  Any purported termination of the Employee’s employment
by the Corporation for Just Cause shall be communicated by a written Notice of
Termination to the Employee.  Such notice shall recite the facts and
circumstances claimed to provide the basis for such termination and specify the
Date of Termination. As used in this Agreement, “Date of Termination” shall
mean the date specified in the Notice of Termination, which date shall not be
less than thirty (30) nor more than sixty (60) days from the date the Notice of
Termination is given.  If within thirty (30) days from the date the Notice
of Termination is given, the Employee notifies the Corporation that a dispute
exists concerning such termination, the Date of Termination shall be the date
on which the dispute is finally resolved.  The Date of Termination shall
be extended by a notice of dispute only if such notice is given in good faith
and the Employee pursues the resolution of such dispute by entering immediately
into binding arbitration pursuant to the Commercial Arbitration Rules of
the American Arbitration Association, the cost of which shall be borne by the
non-prevailing party, except as otherwise required by law.

 

(g)          
By Employee for Good Reason.  This Agreement and the Employee’s
employment with the Corporation may be terminated for Good Reason at any time
within ninety (90) days of the occurrence of Good Reason.  For purposes of
this Agreement “Good Reason” shall mean only the following:  (i) the
relocation of the Corporation’s principal executive offices to a location more
than twenty (20) miles from the Corporation’s then current offices or the
transfer of the Employee to a place other than the Corporation’s principal
executive offices (excepting reasonable travel on the Corporation’s business), (ii) the
Corporation breaches any material provision of this Agreement, or (iii) a
material reduction in the Employee’s authority, duties or responsibility or the
assignment of responsibilities to the Employee materially inconsistent with his
current title of “Executive Vice President.” 
Notwithstanding the foregoing, the Employee may not terminate his
employment for Good Reason unless he provides the Corporation with at least 30
days prior written notice of his intention to resign for Good Reason and the
Corporation has not remedied the alleged violation(s) within such 30-day
period (which 30 days shall not count against the 90 day period above) and the
Employee may not terminate his employment for Good Reason if the Corporation
assigns the responsibility for the Corporation’s operations to a person other
than the Employee.

 

(h)          
At the end of the term provided in Section 3 above.

 

12.           Payments
Upon Termination.  In the event Employee’s employment is terminated by
the Corporation except for any reason covered by Sections 11(a) through 11(e) hereof,
or Employee terminates his employment for Good Reason, the Corporation shall (a) pay
to Employee the higher of (i) his Base Salary (and payment for accrued but
unused vacation) otherwise payable to Employee through the term of this Agreement
provided in Section 3 above or (ii) one year of Employee’s then
annual Base Salary, in either case payable in equal bi-weekly installments or
in accordance with the Corporation’s then standard practices.  If the
Employee is terminated by the Corporation for any reason covered by Sections 11(a) through
11(e) hereof, or the Employee terminates his employment without Good
Reason, the Employee shall be entitled

 

 

to all
arrearages of salary, expenses and accrued but unused vacation, as of the Date
of Termination, but shall not be entitled to further compensation.

 

13.           Indemnification. 
The Corporation shall pay for legal counsel of the Corporation’s choosing to
defend and also shall fully indemnify Employee in connection with any claim,
dispute or action arising from Employee terminating his current employment
relationship and entering into the relationship with the Corporation
contemplated by this Agreement.

 

14.           Other
Termination Provisions.

 

(a)                                  Separation from Service.  Notwithstanding anything to the contrary in this
Agreement, with respect to any amounts payable to the Employee under Section 12
of this Agreement in connection with a termination of the Employee’s
employment, in no event shall a termination of employment occur under this Agreement unless such termination
constitutes a Separation from Service. 
For purposes of this Agreement, a Separation from Service shall mean the
Employee’s “separation from service” with the Corporation as such term is
defined in Treasury Regulation Section 1.409A-1(h) and any successor
provision thereto.

 

(b)                                 Section 409A Compliance. 
Notwithstanding anything contained in this Agreement to the Contrary, to
the maximum extent permitted by applicable law, amounts payable to the Employee
pursuant to Section 12 shall be made in reliance upon Treasury Regulation Section 1.409A-1(b)(9) (Separation
Pay Plans) or Treasury Regulation Section 1.409A-1(b)(4) (Short-Term
Deferrals).  However, to the extent any
such payments are treated as non-qualified deferred compensation subject to Section 409A
of  the Code, then if Employee is deemed
at the time of his Separation from Service to be a “specified employee” for
purposes of Section 409A(a)(2)(B)(i) of the Code, then to the extent
delayed commencement of any portion of the benefits to which Employee is
entitled under this Agreement is required in order to avoid a prohibited
distribution under Section 409A(a)(2)(B)(i) of the Code, such portion
of Employee’s termination benefits shall not be provided to Employee prior to
the earlier of (i) the expiration of the six-month period measured from
the date of the Employee’s Separation from Service or (ii) the date of
Employee’s death.  Upon the earlier of
such dates, all payments deferred pursuant to this Section 14(b) shall
be paid in a lump sum to Employee.  The
determination of whether the Employee is a “specified employee” for purposes of
Section 409A(a)(2)(B)(i) of the Code as of the time of his Separation
from Service shall made by the Corporation in accordance with the terms of Section 409A
of the Code and applicable guidance thereunder (including without limitation
Treasury Regulation Section 1.409A-1(i) and any successor provision
thereto).

 

(c)                                  Resignation Upon Termination.  In the event of termination of this
Agreement other than for death, the Employee hereby agrees to resign from all
positions held in the Corporation, including without limitations any position
as a director, officer, agent, trustee or consultant of the Corporation or any affiliate of the
Corporation.

 

15.           Waiver. 
A party’s failure to insist on compliance or enforcement of any provision of
this Agreement, shall not affect the validity or enforceability or constitute a
waiver of future enforcement of that provision or of any other provision of
this Agreement by that party or any other party.

 

 

16.           Governing
Law.  This Agreement shall in all respects be subject to, and governed
by, the laws of the State of California.

 

17.           Severability. 
The invalidity or unenforceability of any provision in the Agreement shall not
in any way affect the validity or enforceability of any other provision and
this Agreement shall be construed in all respects as if such invalid or
unenforceable provision had never been in the Agreement.

 

18.           Notice. 
Any and all notices required or permitted herein shall be deemed delivered if
delivered personally or if mailed by registered or certified mail to the
Corporation at its principal place of business and to the Employee at the
address hereinafter set forth following the Employee’s signature, or at such
other address or addresses as either party may hereafter designate in writing
to the other.

 

19.           Assignment. 
This Agreement, together with any amendments hereto, shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors, assigns, heirs and personal representatives, except that the rights
and benefits of either of the parties under this Agreement may not be assigned
without the prior written consent of the other party.

 

20.           Amendments. 
This Agreement may be amended at any time by mutual consent of the parties
hereto, with any such amendment to be invalid unless in writing, signed by the
Corporation and the Employee.

 

21.           Entire
Agreement.  This Agreement amends and restates in its entirety the
terms and conditions of Employee’s employment with the Corporation,
notwithstanding the terms and conditions of any previous employment agreement
between the Corporation and Employee, including the Prior Agreement.  This
Agreement, along with the Corporation handbook to the extent it does not
specifically conflict with any provision of this Agreement, contains the entire
agreement and understanding by and between the Employee and the Corporation
with respect to the employment of the Employee, and no representations,
promises, agreements, or understandings, written or oral, relating to the
employment of the Employee by the Corporation not contained herein shall be of
any force or effect.

 

22.          
Burden and Benefit.  This Agreement shall be binding upon, and
shall inure to the benefit of, the Corporation and Employee, and their
respective heirs, personal and legal representatives, successors, and assigns.

 

23.          
References to Gender and Number Terms.  In construing this
Agreement, feminine or number pronouns shall be substituted for those masculine
in form and vice versa, and plural terms shall be substituted for singular and
singular for plural in any place where the context so requires.

 

24.          
Headings.  The various headings in this Agreement are inserted for
convenience only and are not part of the Agreement.

 

25.          
In-Kind Benefits and Reimbursements. 
Notwithstanding
any thing to the contrary in this Agreement, in-kind benefits and
reimbursements provided under this Agreement

 

 

during any tax year of the Employee shall not affect in-kind benefits
or reimbursements to be provided in any other tax year of the Employee and are
not subject to liquidation or exchange for another benefit.  Notwithstanding any thing to the contrary in
this Agreement, reimbursement requests must be timely submitted by Employee
and, if timely submitted, reimbursement payments shall be made to the Employee
as soon as administratively practicable following such submission, but in no
event later than the last day of Employee’s taxable year following the taxable
year in which the expense was incurred. 
In no event shall the Employee be entitled to any reimbursement payments
after the last day of Employee’s taxable year following the taxable year in
which the expense was incurred.  This
paragraph shall only apply to in-kind benefits and reimbursements that would
result in taxable compensation income to the Employee.

 

26.          
Section 409A;
Separate Payments.  This Agreement is intended to
be written, administered, interpreted and construed in a manner such that no
payment or benefits provided under the Agreement become subject to (a) the
gross income inclusion set forth within Code Section 409A(a)(1)(A) or
(b) the interest and additional tax set forth within Code Section 409A(a)(1)(B) (together,
referred to herein as the “Section 409A Penalties”), including, where
appropriate, the construction of defined terms to have meanings that would not
cause the imposition of Section 409A Penalties.  In no event shall the Corporation be required
to provide a tax gross-up payment to Employee or otherwise reimburse Employee
with respect to Section 409A Penalties. 
For purposes of Section 409A of the Code (including, without
limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)),
each payment that Employee may be eligible to receive under this Agreement
shall be treated as a separate and distinct payment.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

 

IN WITNESS WHEREOF, the Corporation and
Employee have duly executed this Agreement as of the day and year first above
written.

 

 

	
   

  	
  CORPORATION:

  
	
   

  	
   

  
	
   

  	
  DG FASTCHANNEL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott K. Ginsburg

  
	
   

  	
   

  	
  Scott K. Ginsburg

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

 

	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  /s/ Neil Nguyen

  
	
   

  	
  NEIL NGUYEN

  

 

Signature PageExhibit 10.3

 

THIS AGREEMENT IS SUBJECT TO ARBITRATION

 

	
  STATE OF FLORIDA

  	
  §

  
	
   

  	
  §

  
	
  COUNTY OF PALM BEACH

  	
  §

  

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT is made and entered into as of the 23rd day of December, 2008, but effective as of the
1st day of December, 2008, by and between DG FastChannel, Inc.,
a Delaware corporation (the “Company”), and Pamela Maythenyi (the “Employee”).

 

WHEREAS, the Company desires to continue the employment relationship
with the Employee on certain terms and conditions as set forth herein, which
employment relationship was previously on the terms and conditions set forth in
that certain Employment Agreement between the Company and the Employee dated November 2,
2007, and effective as of September 1, 2007 (the “Initial Effective
Date”); and

 

WHEREAS, the Employee is willing to accept such continued employment;

 

NOW, THEREFORE, the parties hereto, in consideration of the mutual
covenants and promises hereinafter contained, do hereby agree as follows:

 

1.                                       Employment.
The Company hereby employs Employee and Employee hereby accepts employment by
the Company, on the terms and subject to the conditions hereinafter set forth.

 

2.                                       Duties.
The Employee’s principal duties and responsibilities shall be those duties
assigned to Employee from time to time by the Chief Executive Officer or Chief
Financial Officer of the Company, or such other persons specified by such
officers, provided such duties and responsibilities are commensurate with
Employee’s title as Senior Vice President. Employee agrees to perform such
services and duties and hold such offices as may be assigned to her from time
to time by the Company and to devote substantially her full time, energies and
best efforts to the performance thereof to the exclusion of all other business
activities. Notwithstanding the foregoing, the Company agrees that Employee
shall be permitted to attend

 

 

approximately five meetings per year on
behalf of Heads of Production Associates, Inc., a Florida corporation
owned in part by Employee, at the Company’s expense.

 

3.                                       Term.
The initial term of employment under this Agreement shall begin on the Initial
Effective Date and continue until the third anniversary of the Initial
Effective Date (the “Initial Employment Term”). The employment term
hereunder shall be automatically extended until terminated as herein provided.

 

4.                                       Salary
and Other Compensation. As compensation for the services to be rendered by
the Employee to the Company pursuant to this Agreement, the Employee shall be
paid the following compensation and other benefits:

 

(a)                                  Salary:  (i) $195,000 from the Initial Effective
Date until the first anniversary of the Initial Effective Date, (ii) $210,000
from the first anniversary of the Initial Effective Date until the second anniversary
of the Initial Effective Date, and (iii) $220,000 from the second
anniversary of the Initial Effective Date until the third anniversary of the
Initial Effective Date, each payable in equal monthly installments in arrears,
or such higher compensation as may be established by the Company from time to
time. Should the Employee become “Partially Disabled,” which for purposes of
this subsection means the inability because of any physical or emotional
illness to perform her assigned duties under this Agreement for 40 hours per
week, the Employee’s salary shall be adjusted based on the percentage of a
40-hour work week during which Employee is able to perform her duties. If the
Employee, during any period of Partial Disability, receives any periodic
payments representing lost compensation under any health and accident policy or
under any salary continuation insurance policy, the premiums for which have
been paid by the Company, the amount of salary that the Employee would be
entitled to receive from the Company during the Partial Disability shall be
decreased by the amounts of such payments. Sick days taken by Employee in
accordance with the Company’s sick day policies for its other employees shall
not be considered a Partial Disability.

 

(b)                                 Bonus:  Employee shall be eligible to receive an
annual bonus in an amount equal to $30,000 multiplied by the percentage of
budgeted revenues actually obtained by the Company (or the division or
subsidiary of the Company to which Employee devotes most of her time); provided, however, Employee shall not be
entitled to any bonus if the percentage of budgeted revenues actually obtained
is less than 60%. The parties agree to negotiate in good faith the
budgeted revenues for each year during the term hereof. Employee shall be eligible
for an additional annual bonus in an amount of $15,000 per year, provided the
Company (or the division or subsidiary of the Company to which Employee devotes
most of her time) exceeds such budgeted revenues. Any annual bonus that becomes
payable pursuant to this Section 4(b) shall be paid between January 1
and March 15th of the year following the year for which such annual bonus
was earned; provided, however, in no event will the bonus be paid after December 31
of the year following the year for which such annual bonus was earned.

 

(c)                                  Stock
Incentive Plans:  The Employee shall be
eligible to participate in the Company’s stock incentive plans, subject to
approval of the Compensation Committee (or other applicable committee) of the
Board of Directors, and subject to any limitation as may be provided by
applicable law or regulation.

 

2

 

(d)                                 Car
Allowance:  The Company shall pay to the
Employee a car allowance in an amount equal to $500 per month during the term
of employment under this Agreement.

 

(e)                                  Employee
Benefit Plans:  The Employee shall be
eligible to participate, to the extent she may be eligible, in any profit
sharing, retirement, insurance or other employee benefit plan maintained by the
Company.

 

5.                                       Vacations
and Leave. The Employee shall be entitled to the same vacation and leave
time as the other employees of the Company performing similar functions. At a
minimum, Employee shall be entitled to not less than four weeks paid vacation
to be accrued in accordance with the Company’s vacation policy in effect from
time to time.

 

6.                                       Non-Disclosure
of Confidential Information. The Employee acknowledges that in and as a
result of her employment by the Company, she will be making use of, acquiring,
and/or adding to confidential information of a special and unique nature and
value relating to such matters as the Company’s patents, copyrights,
proprietary information, trade secrets, systems, procedures, manuals,
confidential reports, and lists of customers (which are deemed for all purposes
confidential and proprietary), as well as the nature and type of services
rendered by the Company, the equipment and methods used and preferred by the
Company’s customers, and the fees paid by them. As a material inducement to the
Company to enter into this Agreement and to pay to Employee the compensation
stated in Section 4, Employee covenants and agrees that she shall not, at
any time during or following the term of her employment, directly or indirectly
divulge or disclose for any purpose whatsoever any confidential information
that has been obtained by, or disclosed to, her as a result of her employment
by the Company.

 

7.                                       Covenants
Against Competition. The Employee acknowledges that the services she is to
render are of a special and unusual character with a unique value to the
Company, the loss of which cannot adequately be compensated by damages in
action at law. In view of the unique value to the Company of the services of
Employee because of the confidential information to be obtained by or disclosed
to Employee, as hereinabove set forth, and as a material inducement to the
Company to enter into this Agreement and to pay to Employee the compensation
stated in Section 4, Employee covenants and agrees that during Employee’s
employment and for a period of four years after she ceases to be employed by
the Company for any reason, she will not, except as otherwise authorized by
this Agreement, compete with the Company or any affiliate of the Company,
solicit the Company’s customers or the customers of any affiliate or directly
or indirectly solicit for employment any of the Company’s employees. Notwithstanding
the foregoing, Employee shall have the right to be employed by, or provide
consulting services to, an advertising agency so long as such employment or
consulting services do not relate to advertising and production database
information services. Furthermore, the restrictive covenants set forth in this Section 7
shall be void and inapplicable in the event this Agreement is terminated by
Employee due to a material breach by the Company that is not remedied within
thirty (30) days after written notice thereof. For purposes of this Section:

 

(a)                                  the
term “compete” means engaging in the same or any substantially similar business
as the Company or any of its affiliates in any manner whatsoever (other than as
a passive investor), including without limitation, as a proprietor, partner,
investor, shareholder, director, officer, employee, consultant, independent
contractor, or otherwise;

 

3

 

(b)                                 the
term “affiliate” means any legal entity that directly or indirectly through one
or more intermediaries controls, is controlled by, or is under the common
control with the Company; and

 

(c)                                  the
term “customers” means all persons to whom the Company or any of its affiliates
has sold any product or service whether or not for compensation within a period
of five years prior to the time Employee ceases to be employed by the Company.

 

8.                                       Reasonableness
of Restrictions

 

(a)                                  The
Employee has carefully read and considered the provisions of Sections 6 and 7,
and, having done so, agrees that the restrictions set forth in these sections,
including, but not limited to, the time period of restriction and geographical
areas of restriction are fair and reasonable and are reasonably required for
the protection of the interests of the Company and its parent or subsidiary
companies, officers, directors, shareholders and other Employees.

 

(b)                                 In
the event that, notwithstanding the foregoing, any of the provisions of
Sections 6 and 7 shall be held to be invalid or unenforceable, the remaining
provisions thereof shall nevertheless continue to be valid and enforceable as
though the invalid or unenforceable parts had not been included therein. In the
event that any provision of Sections 6 or 7 relating to the time period and/or
the areas of restriction and/or related aspects shall be declared by a court of
competent jurisdiction to exceed the maximum restrictiveness such court deems
reasonable and enforceable, the time period and/or areas of restriction and/or
related aspects deemed reasonable and enforceable by the court shall become and
thereafter be the maximum restriction in such regard, and the restriction shall
remain enforceable to the fullest extent deemed reasonable by such court.

 

9.                                       Remedies
for Breach of Employee’s Covenants of Non-Disclosure and Noncompetition. In
the event of a breach of any of the covenants in Sections 6 and 7, the Company
shall have the right to seek monetary damages for any such breach. In addition,
in the event of a breach or threatened breach of any of the covenants in Section 6
and 7, the Company shall have the right to seek equitable relief, including
specific performance by means of an injunction against the Employee or against
the Employee’s partners, agents, representatives, servants, employers,
employees, family members and/or any and all persons acting directly or
indirectly by or with her, to prevent or restrain any such breach.

 

10.                                 Termination.
Employment of the Employee under this Agreement may/will be terminated:

 

(a)                                  By
the Employee’s death.

 

(b)                                 If
the Employee is Totally Disabled. For the purposes of this Agreement, the
Employee will be totally disabled if she is “totally disabled” as defined in
and for the period necessary to qualify for benefits under any disability
income insurance policy and any replacement policy or policies covering
Employee and the Employee has been declared to be totally disabled by the
insurer for a period of three consecutive months.

 

4

 

(c)                                  By
mutual agreement of the Employee and the Company.

 

(d)                                 By
the dissolution and liquidation of the Company (other than as part of a
reorganization, merger, consolidation or sale of all or substantially all of
the assets of the Company whereby the business of the Company is continued). In
such event, the restrictive covenants in Section 7 above shall be
inapplicable with respect to Employee.

 

(e)                                  By
the Company for Just Cause. This Agreement and the Employee’s employment with
the Company may be terminated for “Just Cause” at any time in accordance with
subsection (g) of this section. For purposes of this Agreement, Just Cause
shall mean only the following:  (i) a
conviction of or a plea of guilty or nolo
contendre by the Employee to a felony or misdemeanor involving
fraud, embezzlement, theft or dishonesty or other criminal conduct, (ii) habitual
neglect of the Employee’s duties or failure by the Employee to perform or
observe any substantial lawful obligation of such employment that is not
remedied within thirty (30) days after written notice thereof from the Company
or its Board of Directors or (iii) any material breach by the Employee of
this Agreement or written policies of the Company applicable to employees
generally that can be remedied and is not remedied within thirty (30) days
after written notice thereof from the Company or its Board of Directors. Should
the Employee dispute whether she was terminated for Just Cause, then the
Company and the Employee shall enter immediately into binding arbitration
pursuant to the Commercial Arbitration Rules of the American Arbitration
Association, the cost of which shall be the non-prevailing party.

 

(f)                                    At
the election of the Employee upon six months advance notice or upon material
breach of the terms hereof by the Company.

 

(g)                                 Notice
of Termination. Any purported termination of the Employee’s employment, either
by the Company for Just Cause or by the Employee pursuant to Section 10(f),
shall be communicated by a written Notice of Termination to the other party
hereto. Such notice shall indicate a specific termination provision in this
Agreement which is relied upon, recite the facts and circumstances claimed to
provide the basis for such termination and specify the “Date of Termination.”  As used in this Agreement, Date of
Termination shall mean the date specified in the Notice of Termination, which
date shall not be less than thirty (30) nor more than sixty (60) days from the
date the Notice of Termination is given. If within thirty (30) days from the
date the Notice of Termination is given, the party receiving such notice
notifies the other party that a dispute exists concerning such termination, the
Date of Termination shall be the date on which the dispute is finally resolved.
The Date of Termination shall be extended by a notice of dispute only if such
notice is given in good faith and the party giving such notice pursues the
resolution of such dispute by entering immediately into binding arbitration
pursuant to the Commercial Arbitration Rules of the American Arbitration
Association, the cost of which shall be borne by the non-prevailing party.

 

(h)                                 At
the end of the Initial Employment Term.

 

5

 

11.                                 Payments
Upon Termination.

 

(a)                                  If
the Employee is terminated upon death pursuant to 10(a), Total Disability
pursuant to Section 10(b), mutual agreement of Employer and Employee
pursuant to Section 10(c), dissolution and liquidation of the Company
pursuant to Section 10(d), Just Cause pursuant to Section 10(e), at
Employee’s election pursuant to Section 10(f), or at the end of the
Initial Employment Term pursuant to Section 10(h), the Employee shall be
entitled to all arrearages of salary, accrued but unused vacation and expenses
as of the Date of Termination (the “Accrued Obligations”) but shall not be
entitled to further compensation.

 

(b)                                 In
the event Employee’s employment is terminated by the Company without Just
Cause, or for any reason not covered by subsections 10(a) through 10(f) above
or 10(h) above, the Company shall pay to Employee (i) all Accrued
Obligations as required under state wage payment law and (ii) the amount
of salary otherwise payable to Employee for the remainder of the Initial
Employment Term in accordance with the Company’s normal payroll practices as
though Employee were employed by the Company through the end of such term. Furthermore,
the restrictive covenants in Section 7 shall become inapplicable.

 

12.                                 Other
Termination Provisions.

 

(a)                                  Separation
from Service. Notwithstanding anything to the contrary in this Agreement,
with respect to any amounts payable to the Employee under Section 11(b)(ii) of
this Agreement in connection with a termination of the Employee’s employment,
in no event shall a termination of employment occur under this Agreement unless
such termination constitutes a Separation from Service. For purposes of this
Agreement, a Separation from Service shall mean the Employee’s “separation from
service” with the Company as such term is defined in Treasury Regulation Section 1.409A-1(h) and
any successor provision thereto.

 

(b)                                 Section 409A
Compliance. Notwithstanding anything contained in this Agreement to the
Contrary, to the maximum extent permitted by applicable law, amounts payable to
the Employee pursuant to Section 11 shall be made in reliance upon
Treasury Regulation Section 1.409A-1(b)(9) (Separation Pay Plans) or
Treasury Regulation Section 1.409A-1(b)(4) (Short-Term Deferrals). However,
to the extent any such payments are treated as non-qualified deferred
compensation subject to Section 409A of 
the Code, then if Employee is deemed at the time of her Separation from
Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of
the Code, then to the extent delayed commencement of any portion of the
benefits to which Employee is entitled under this Agreement is required in
order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of
the Code, such portion of Employee’s termination benefits shall not be provided
to Employee prior to the earlier of (i) the expiration of the six-month
period measured from the date of the Employee’s Separation from Service or (ii) the
date of Employee’s death. Upon the earlier of such dates, all payments deferred
pursuant to this Section 12(b) shall be paid in a lump sum to
Employee. The determination of whether the Employee is a “specified employee”
for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time
of her Separation from Service shall made by the Company in accordance with the
terms of Section 409A of the Code and applicable guidance thereunder
(including without limitation Treas. Reg. Section 1.409A-1(i) and any
successor provision thereto).

 

6

 

(c)                                  Resignation
Upon Termination. In the event of termination of this Agreement other than
for death, the Employee hereby agrees to resign from all positions held in the
Company, including without limitations any position as a director, officer,
agent, trustee or consultant of the Company or any affiliate of the Company. For
the purposes of this provision, the term “affiliate” has the same meaning as in
Section 7.

 

13.                                 Waiver.
A party’s failure to insist on compliance or enforcement of any provision of
this Agreement, shall not affect the validity or enforceability or constitute a
waiver of future enforcement of that provision or of any other provision of
this Agreement by that party or any other party.

 

14.                                 Governing
Law. This Agreement shall in all respects be subject to, and governed by,
the laws of the State of Florida. Venue for any litigation or arbitration
arising out of this Agreement shall be proper only in Palm Beach County,
Florida. The parties hereto hereby consent to the personal jurisdiction of the
state and Federal courts situated in Palm Beach County, Florida.

 

15.                                 Severability.
The invalidity or unenforceability of any provision in the Agreement shall not
in any way affect the validity or enforceability of any other provision, and
this Agreement shall be construed in all respects as if such invalid or
unenforceable provision had never been in the Agreement.

 

16.                                 Notice.
Any and all notices required or permitted herein shall be deemed delivered if
delivered personally or if mailed by registered or certified mail to the
Company at its principal place of business and to the Employee at the address
hereinafter set forth following the Employee’s signature, or at such other
address or addresses as either party may hereafter designate in writing to the
other.

 

17.                                 Amendments.
This Agreement may be amended at any time by mutual consent of the parties
hereto, with any such amendment to be invalid unless in writing, signed by the
Company and the Employee.

 

18.                                 Entire
Agreement. This Agreement, along with the Company handbook to the extent it
does not specifically conflict with any provision of this Agreement, contains
the entire agreement and understanding by and between the Employee and the
Company with respect to the employment of the Employee, and no representations,
promises, agreements, or understandings, written or oral, relating to the
employment of the Employee by the Company not contained herein shall be of any
force or effect.

 

19.                                 Burden
and Benefit. This Agreement shall be binding upon, and shall inure to the
benefit of, the Company and Employee, and their respective heirs, personal and
legal representatives, successors, and assigns.

 

20.                                 References
to Gender and Number Terms. In construing this Agreement, feminine or
number pronouns shall be substituted for those masculine in form and vice
versa, and plural terms shall be substituted for singular and singular for
plural in any place which the context so requires.

 

7

 

21.                                 Headings.
The various headings in this Agreement are inserted for convenience only and
are not part of the Agreement.

 

22.                                 Assignment.
This Agreement is not assignable by either party without the prior written
consent of the other party.

 

23.                                 In-Kind
Benefits and Reimbursements. Notwithstanding any thing to the contrary in
this Agreement, in-kind benefits and reimbursements provided under this
Agreement during any tax year of the Employee shall not affect in-kind benefits
or reimbursements to be provided in any other tax year of the Employee and are
not subject to liquidation or exchange for another benefit. Notwithstanding any
thing to the contrary in this Agreement, reimbursement requests must be timely
submitted by Employee and, if timely submitted, reimbursement payments shall be
made to the Employee as soon as administratively practicable following such
submission, but in no event later than the last day of Employee’s taxable year
following the taxable year in which the expense was incurred. In no event shall
the Employee be entitled to any reimbursement payments after the last day of
Employee’s taxable year following the taxable year in which the expense was
incurred. This paragraph shall only apply to in-kind benefits and
reimbursements that would result in taxable compensation income to the
Employee.

 

24.                                 Section 409A;
Separate Payments. This Agreement is intended to be written, administered,
interpreted and construed in a manner such that no payment or benefits provided
under the Agreement become subject to (a) the gross income inclusion set
forth within Code Section 409A(a)(1)(A) or (b) the interest and
additional tax set forth within Code Section 409A(a)(1)(B) (together,
referred to herein as the “Section 409A Penalties”), including, where
appropriate, the construction of defined terms to have meanings that would not
cause the imposition of Section 409A Penalties. In no event shall the
Company be required to provide a tax gross-up payment to Employee or otherwise
reimburse Employee with respect to Section 409A Penalties. For purposes of
Section 409A of the Code (including, without limitation, for purposes of
Treasury Regulation Section 1.409A-2(b)(2)(iii)), each payment that
Employee may be eligible to receive under this Agreement shall be treated as a
separate and distinct payment.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

8

 

IN WITNESS WHEREOF, the Company and Employee have duly executed this
Agreement as of the day and year first above written.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  DG FASTCHANNEL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Omar A. Choucair

  
	
   

  	
   

  	
  Omar A. Choucair

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Pamela Maythenyi

  
	
   

  	
  PAMELA MAYTHENYI

  

 

 

Signature Page

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