Document:

Prepared by MERRILL CORPORATION

MEDIA

ARTS GROUP, INC.

 

Exhibit 10.47

 

AMENDMENT NO. 5 TO

BUSINESS LOAN AGREEMENT

 

This Amendment No. 5 to Business Loan Agreement, dated

as of September 30, 2001 (the "Amendment"), is between Media Arts

Group, Inc., a Delaware corporation (“MAGI”), Lightpost Publishing, Inc., a

California corporation (“Lightpost,” and together with MAGI, each a “Borrower”

and collectively the “Borrowers”) and Bank of America, N.A. (the “Bank”).

 

A.            The

Borrowers and the Bank have entered into a certain Business Loan Agreement

dated as of October 27, 1999 as amended to date (the "Loan

Agreement").

 

B.            The

Borrowers have requested that the Bank amend the Loan Agreement on the terms

and conditions herein contained.

 

NOW, THEREFORE, in consideration of the premises

herein contained and for other good and valuable consideration, the Borrowers

and the Bank do hereby mutually agree as follows:

 

AGREEMENT

 

1.             Definitions.  Capitalized terms used but not defined in

this Amendment shall have the meaning given to them in the Loan Agreement.

 

2.             Amendment.   Section 1.2 of the Loan Agreement is

amended by deleting this Section in its entirety, and by substituting the

following therefor:

 

"1.2         Availability

Period.  The line of credit is

available between the date of this Agreement and November 30, 2001 (the

“Expiration Date”) unless any Borrower is in default."

 

3.             Representations

and Warranties.  When the Borrowers

sign this Amendment, each Borrower represents and warrants to the Bank that:

(a) giving effect to this Amendment, there is no event which is, or with notice

of, or lapse of time, or both would be, a default under the Loan Agreement, (b)

giving effect to this Amendment, the representations and warranties of the

Borrowers in the Loan Agreement are true on and as of the date hereof as if

made on and as of said date, (c) this Amendment is within such Borrower's

powers, has been duly authorized and does not conflict with any of such

Borrower's organizational papers, and (d) this Amendment does not conflict with

any law, agreement or obligations by which such Borrower is bound.

 

4.             Conditions.  This Amendment will be effective upon the

occurrence of the following, in each case in a manner satisfactory to the Bank:

 

4.1           Receipt by the Bank of this Amendment

executed by each party hereto; and

 

4.2           Payment by the Borrowers to the Bank

of a fee in the amount of Eight Thousand Three Hundred Thirty Three and 33/100

Dollars ($8,333.33).

 

5.             Effect

of Amendment.  Except as

specifically amended above, the Loan Agreement shall remain in full force and

effect and is hereby ratified and confirmed. 

Nothing in this Amendment shall be deemed to (a) constitute a waiver of

compliance by any Borrower with respect to any other term, provision or

condition of the Loan Agreement or any other instrument or agreement referred

to therein or (b) prejudice any right or remedy that the Bank may now have or

may have in the future under applicable law or instrument or agreement referred

to therein.

 

6.             Counterparts.  This Amendment may be executed in any number

of counterparts, each of which when so executed shall be deemed an original,

and all of said counterparts taken together shall be deemed to constitute but

one and the same instrument.

 

IN WITNESS WHEREOF, this Amendment has been executed

by the parties hereto as of the date first above written.

 

	

  BANK

  OF AMERICA, N.A.

  	

   

  	

  MEDIA

  ARTS GROUP, INC.

  
	

   

  	

   

  	

   

  
	

  By

  	

  /s/ Kenneth E. Jones

  	

   

  	

  By  

  	

  /s/ Michael J. Catelani

  	

   

  	 

	

   

  	

  Kenneth E. Jones, Senior Vice President

  	

  Name:

  	

  Michael J. Catelani

  
	

   

  	

  Title:

  	

  VP - Finance

  
	

   

  	

   

  	

   

  
	

  By

  	

  /s/ John C. Plecque

  	

   

  	

   

  	

  LIGHTPOST

  PUBLISHING, INC.

  	 

	

   

  	

  John C. Plecque, Senior Vice President

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By  

  	

  /s/ Michael J. Catelani

  	

   

  	 

	

   

  	

  Name:

  	

  Michael J. Catelani

  
	

   

  	

  Title:

  	

  VP - FinancePrepared by MERRILL CORPORATION

MEDIA

ARTS GROUP, INC.

Exhibit 10.48

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT is

entered into as of June 19, 2001, by and between MEDIA ARTS GROUP, INC., a

Delaware corporation (the “Employer” or the “Company”), and ANTHONY

THOMOPOULOS, of 1280 Canyon Road, Los Angeles, CA 90077 (the “Employee”).

 

RECITALS

 

A. Employer is the

holding company of various wholly owned subsidiaries which are engaged in the

business of the creation, printing, reproduction, marketing, production, and

selling of various forms of artwork, including, without limitation, paintings,

prints, lithographs, posters, as well as licensing and wholesale distribution

of plates, figurines, and other two- and three-dimensional artwork.  Employer is also engaged in significant

growth which may lead to the acquisition and development of related and other

businesses.

 

B. The Board of

Directors of the Employer (the “Board”) has approved and authorized the entry

of this Agreement with the Employee.

 

C. The parties of

this Agreement desire to enter into this Agreement setting forth the terms and

conditions for the employment relationship of the Employee with the Employer.

 

NOW, THEREFORE, IN CONSIDERATION OF

THE COVENANTS, CONDITIONS AND PROMISES OF THE PARTIES SET FORTH BELOW, Employer

and Employee agree as follows:

 

1)    Employment.  The Employee is employed as Interim Chief

Executive Officer as of the date of this Agreement and through and until the

termination of this Agreement, as hereinafter defined, with the duties and

responsibilities and on the terms and conditions hereinafter set forth.

 

2)    Responsibilities and Duties of Employee.  It is agreed that Employee is employed on a

full-time basis (approximately three to four days per week), which is defined

to mean Employee’s entire productive time, ability and attention.  In his capacity as Interim Chief Executive

Officer, Employee shall be primarily responsible for, and shall personally

perform or personally supervise, the strategic management and functions of the

Company.  In addition, Employee shall be

responsible for the search and retention of a Chief Executive Officer for the

Company.

 

In

addition to the aforementioned responsibilities and duties, Employee shall

perform such other duties and responsibilities as the Board shall designate as

are not inconsistent with the Employee’s position with the Employer, including

the performance of duties with respect to any subsidiaries of the Employer.

 

Employee

shall at times perform the duties set forth herein faithfully, industriously,

and to the best of the Employee’s ability, experience and talent.  Employee shall be responsible to the Board

in regard to all matters unless otherwise mutually agreed to by the parties.

 

3)    Location of the Employee’s Work.  The Employee shall be based in the principal

executive offices of the Employer in Morgan Hill, California, or in any city

which the principal executive offices of the Employer may relocate.  The Employee shall be provided with

appropriate temporary housing or lodging expenses including travel expenses to

and from primary residence and corporate office during the term of his

employment, along with appropriate transportation in the form of an automobile.

 

4)    Duration of Employment.  The Employer agrees to employ Employee in

the capacity set for the above for the period of time commencing as of the date

hereof and ending 90 days later, on September 17, 2001.  However, should Employee not find and the

Company not be able to retain a suitable Chief Executive Officer on or before

September 17, 2001, then Employee shall remain employed by the Company for up

to an additional 90-day period, until December 16, 2001.

 

5)    Compensation to Employee.

 

a)     Salary.  The Employer agrees to pay the Employee

total compensation for the initial 90-day period in the amount of

$250,000.00.  Employee shall not be

entitled to receive bonus payments or profit-sharing payments of any kind

during the period of time Employee is employed hereunder.  If Employee is successful in identifying a

Chief Executive Officer during the first 90-day period, and should the Company

retain such Chief Executive Officer prior to the end of the first 90-day

period, then Employee shall still be entitled to receive the full $250,000.00

compensation for the first 90-day period. 

Should the employment of Employee extend into the second 90-day period,

then Employee shall be compensated through the issuance of stock options,

priced at $1.00 per share.  Such options

shall be granted to Employee at the rate of 50,000 per 30-day period and shall

be immediately exercisable at the conclusion of each 30-day period, or at the

termination of Employee’s employment, whichever shall occur first.  Should Employee’s employment during the

second 90-day period terminate prior to the end of any 30-day period therein,

then the entire 50,000 options shall be granted at that time.

 

Should

the employment of the employee be terminated prior to the first 90 days without

cause (see paragraph 7a) the employee shall be entitled to receive the full

$250,000 compensation for the first 90-day period.

 

The

salary under this Paragraph (a) of this Section 5 shall be payable according to

Employer’s normal payroll practices and shall be subject to standard federal

and California tax withholding rules.

 

b)     Health Care, Disability, and Life Insurance

Benefits.  The Employer

agrees to provide medical insurance coverage under the Employer’s group medical

insurance plan for the Employee and his dependents, at no cost to the Employee

for such coverage of the Employee and his dependents.  The Employer agrees to pay the premiums on the life and

disability insurance policies which are in effect as of the date hereof and

under which the Employee receives life insurance and disability insurance

coverage.

 

6)    Expenses Incurred by Employee.  In General.  In addition to the compensation structure set forth in Section 5,

the Employer shall pay all direct out-of-pocket expenses incurred by the

Employee in connection with the performance of his duties set forth herein

including, but not limited to, travel, lodging and long distance telephone

expenses.  The Employee shall include in

any request for reimbursement for such expenses a detailed account with

receipts of all expenses incurred by the Employee, and a detailed account of

the business relating to those expenses, in connection with the performance of

his duties as described in this Agreement.

 

 

7)    Termination.

 

a)     Cause.  Subject to the notice provisions set forth

below, the Employer may terminate the Employee’s employment for “Cause” at any

time.  “Cause” shall mean termination

upon (1) the willful failure by the Employee to substantially perform his

duties with the Employer (other than any such failure resulting from his

incapacity due to physical or mental illness), after a written demand for

substantial performance is delivered to him by the Board, which demand

specifically identifies the manner in which the Board believes that he has not

substantially performed his duties or (2) the willful engaging by the Employee

in conduct which is demonstrably and materially injurious to the Employer,

monetarily or otherwise.  For purposes

of this paragraph (a) of this Section 7, no act, or failure to act, on the

Employee’s part shall be deemed “willful” unless done, or omitted to be done,

by him not in good faith and without the reasonable belief that this action or

omission was in the best interest of the Employer.  Notwithstanding the foregoing, the Employee shall not be deemed

to have been terminated for Cause unless and until there shall have been

delivered to him a copy of a resolution duly adopted by the affirmative vote of

not less than two-thirds (2/3) of the entire membership of the Board at a

meeting of such Board (after reasonable notice to him and an opportunity for

him, together with his counsel, to be heard before such Board), finding that he

has engaged in the conduct set forth above in this paragraph (a) and specifying

the particulars thereof in detail.

 

b)     Notice of Termination.  Any termination of the Employee’s employment

by the Employer or by the Employee shall be communicated by written Notice of

Termination to the other party hereto in accordance with Section10.  “Notice of Termination” shall mean a notice

that shall indicate the specific termination provision in the Agreement relied

upon and shall set forth in reasonable detail the facts and circumstances

claimed to provide a basis for the termination of the Employee’s employment

under the provision so indicated.

 

c)     Date of Termination.  “Date of Termination” shall mean (1) if the

Employee’s employment is terminated by his death, the date of his death; (2) if

the Employee’s employment is terminated for Disability, thirty (30) days after

Notice of Termination is given (provided that he shall not have returned to the

full-time performance of his duties during such thirty (30) day period); (3) if

the Employee’s employment is terminated for Cause, the date specified in the

Notice of Termination (which shall not be less than thirty (30) days from the

date of Notice of Termination is given), and (4) if the Employee’s employment

is terminated for any other reason, the date specified in the Notice of

Termination.

 

8)    No Assignments.  This Agreement is personal to each of the

parties hereto.  No party may assign or

delegate any rights or obligations hereunder without first obtaining the

written consent of all of the other parties hereto, except that this Agreement

shall be binding upon and inure to the benefit of any successor corporation to

the Employer.

 

a)     This Agreement shall inure to the

benefit of and be enforceable by the Employee and his personal or legal

representatives, executors, administrators, successors, heirs, distributees,

devisees, and legatees.  If the Employee

should die while any amount would still be payable to him hereunder had he

continued to live, all such amounts, unless otherwise provided herein, shall be

paid in accordance with the terms of this Agreement to his devisee, legatee or

other designee, if there is no such designee, to his estate.

 

9)    Noncompetition.

 

a)     General.  The Employee agrees that while this

Agreement is in effect, he will not, directly or indirectly, without the prior

written consent of the Employer, provide consultative service with or without

pay, own, manage, operate, join, control, participate in, or be connected as a

stockholder, partner, or otherwise with any business, individual, partner,

firm, corporation, or other entity which is then in competition with the

Employer or any subsidiary or affiliate of the Employer in violation of this

Agreement and that the Employer would by reason of such competition be entitled

to injunctive relief in a court of appropriate jurisdiction, and the Employee

further consents and stipulates to the entry of such injunctive relief in such

a court prohibiting the Employee from competing with the Employer or any

subsidiary or affiliate of the Employer, in the areas set forth above, in

violation of this Agreement.

 

 

b)     Right to Company Materials.  The Employee agrees that all styles,

designs, lists, materials, books, files, reports, correspondence, records, and

other documents (“Company Material”) used, prepared, or made available to the

Employee, shall be and shall remain the property of the Employer, its

subsidiary, or its affiliate, as the case may be.  Upon termination of employment of the expiration of the

Agreement, all Company Materials shall be returned immediately to the Employer,

its subsidiary, or its affiliate, as the case may be; provided, however, that

the Employee shall be entitled to make and retain any copies thereof with

respect to matters involving the Employee.

 

c)     Antisolicitation.  The Employee promises and agrees that while

this Agreement continues in effect, he will not influence or attempt to

influence customers or suppliers of the Employer or any of its present or

future subsidiaries or affiliates, either directly or indirectly, to divert

their business to any individual, partnership, firm, corporation, or other

entity then in competition with the business of the Employer, or any subsidiary

or affiliate of the Employer.

 

d)     Soliciting Employees.  The Employee promises and agrees that while

this Agreement continues in effect, he will not directly or indirectly solicit

any of the employees of the Employer, its subsidiaries or its affiliates to

work for or invest in, as the case may be, any business, individual,

partnership, firm, corporation, or other entity then in competition with the

business of the Employer or any subsidiary or affiliate of the Employer.

 

e)     Restriction on Use or Disclosure of

Trade Secrets.  It is expressly

understood that the Employee may be dealing with trade secrets of the Employer,

its subsidiaries and its affiliates, including but not limited to information,

system(s), inventions, and processes, all of a confidential nature, that

concern the operations of the Employer, its subsidiaries or affiliates and that

are the Employer’s property and are used in the course of the Employer’s

business or that of its subsidiaries or affiliates.  The Employee promises and agrees that he will not disclose to anyone,

directly, or indirectly, either while this Agreement is in effect or at any

time thereafter, any of such trade secrets, or use them other than in the

course of his employment.  The Employee

acknowledges that the Employer may use all remedies, including injunctive

relief, in order to enforce the provisions of this paragraph (e).

 

10)  Notice. 

For the purpose of this Agreement, notices provided for in this

Agreement shall be in writing and shall be deemed to have been duly given when

delivered or mailed by United States certified or registered mail, return

receipt requested, postage prepaid, addressed to the respective addresses set

forth below, or to such other address as any party may have furnished to the

other in writing in accordance herewith, except that notice of a change of

address shall be effective only upon actual receipt:

 

Employer:                                                                                                             MEDIA

ARTS GROUP, INC.

                                                                                                                               900

Lightpost Way

                                                                                                                               Morgan

Hill, CA 95037

                                                                                                                               Attn:  General Counsel

 

Employee:                                                                                                            ANTHONY

THOMOPOULOS

                                                                                                                               1280

Stone Canyon Road

                                                                                                                               Los

Angeles, CA 90077

 

 

11)  Indemnification.  If the Employee is made or is threatened to

be made a party to any threatened, pending, or completed action, suit or

proceeding, whether civil, criminal administrative or investigative, by reason

of the fact that he is or was an officer of the Employer, or is or was an

officer of the Employer serving at the request of the Employer as a director or

officer, employee or agent of another corporation, partnership, joint venture,

trust, employee benefit plan or other enterprise, then the Employer shall

indemnify the Employee against expenses (including attorneys’ fees),

judgements, fines and amounts paid in settlement actually and reasonably

incurred by him in connection with such action, suit or proceeding if he acted

in good faith, as such term is defined in the Bylaws of the Employer, and, with

respect to any criminal action or proceeding, had no reasonable cause to

believe his conduct was unlawful; provided, however, that with respect to

actions, suit or proceedings by or in the right of the Employer, the Employer

shall not indemnify the Employee in respect of any claim, issue or matter as to

such which Employee shall have been adjudged to be liable to the Employer

unless and only to the extent that the court in which such action or suit was

brought shall determine upon application that, despite the adjudication of

liability but in view of all the circumstances of the case, such Employee is

fairly and reasonably entitled to indemnity for such expenses which the court

shall deem proper.

 

The

termination of any action, suit or proceeding by judgement, order, settlement,

conviction, or upon a plea of nolo contendere or its equivalent, shall

not, of itself create a presumption that the person did not act in good faith

and in a manner which he reasonably believed to be in or not opposed to the

best interests of the Employer, and, with respect to any criminal action or

proceeding, any reasonable cause to believe that his conduct is unlawful.

 

12)  Entire Agreement.  This Agreement represents the entire

agreements of parties hereto.  No

agreements or representation, oral or otherwise, express or implied, with

respect to the subject matter hereof have been made by any of the parties which

are not expressly set forth in this Agreement.

 

13)  Amendments, Additions, Modifications,

Waiver or Discharge.  No

amendments or additions to this Agreement shall be binding unless in writing

and signed by all parties hereto.  No

provision of this Agreement may be modified, waived or discharged unless such

waiver, modification or discharge is agreed to in writing and signed by all

parties hereto.

 

14)  Governing Law.  This Agreement shall be governed by,

construed and enforced in accordance with the laws of the State of California

and any applicable federal laws.

 

15)  Captions and Section Numbers.  The captions and numbers to the sections and

paragraphs of this Agreement are inserted for convenience only and shall not

affect the construction or interpretation hereto.

 

16)  Triplicate Originals; Counterparts.  This Agreement and all amendments shall be

fully executed in triplicate and each triplicate shall constitute an original

of the same instrument.  This Agreement

may be executed in several counterparts, each of which shall be deemed to be an

original, but all of which together shall constitute one and the same

instrument.

 

17)  Arbitration.  Any controversy or claim arising out of or

relating to this Agreement shall be settled exclusively by arbitration,

conducted before a panel of three (3) arbitrators in Morgan Hill, California in

accordance with the rules or the American Arbitration Association then in

effect.  Judgment may be entered on the

arbitrator’s award in any court having jurisdiction.

 

18)  Severability.  The provisions of this Agreement shall be

deemed severable and the invalidity or unenforceability of any provision shall

not affect the validity or enforceability of the other provisions hereof.

 

 

19)  Numbers. 

Unless the context clearly indicates otherwise, words used herein in the

singular include the plural and words in the plural include the singular.

 

20)  Gender. 

The use of feminine, masculine, or neuter pronoun shall not be

restrictive as to gender and shall be interpreted in all cases as the context

may require.

 

21)  Representations of Employee.  The Employee represents that he is not under

contract of any kind with any entity or business which would prohibit him from

entering into this Agreement.  The

Employee further represents that he is entirely free to enter into this

Agreement and that he neither has not will enter into any agreement or other

obligation while this Agreement is in effect which might conflict with this

Agreement or interfere or conflict with any of the terms thereof.

 

22)  Representation of Employer.  The Employer represents that it is a

corporation in good standing by and under the laws of the State of Delaware and

that its president has the authority to properly execute this Agreement.

 

IN WITNESS WHEREOF, each of the

parties hereto has duly executed this Agreement on the date first indicated

above.

 

	

   

  	

   

  	

  MEDIA ARTS GROUP, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

   /s/ Herb Montgomery

  
	

   

  	

   

  	

   

  	

  Herb Montgomery

  
	

   

  	

   

  	

  Senior Vice President,

  Chief Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  /s/ Anthony D. Thomopoulos

  
	

   

  	

   

  	

   

  	

  Anthony Thomopoulos

  
	

   

  	

   

  	

  Employee

  
	

   

  	

   

  	

   

  
	

  /s/ Timothy S. Guster

  	

   

  	

   

  
	

  Timothy Guster

  	

   

  	

   

  
	

  Senior Vice President,

  General Counsel

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