Document:

Prepared by MerrillDirect

             EMPLOYMENT AGREEMENT

 

             THIS
EMPLOYMENT AGREEMENT (the "Agreement") made and entered into
effective as of the 2nd day of July 2001, by and between Eye Care
Centers of America, Inc., a Texas Corporation (the "Company"), or its
assigns, and Alan E. Wiley ("Employee");

             WITNESSETH:

             WHEREAS,
the Company desires to employ Employee on the terms and conditions set forth
below; and

             WHEREAS,
Employee desires to serve in the employment of the Company on the terms and
conditions set forth below;

             NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, the parties hereto agree as follows:

             1.          Employment.  The Company hereby employs Employee and
Employee hereby accepts such employment, upon the terms and conditions set
forth herein.

             2.          Term.  The term of this Agreement shall commence on the date hereof (the
"Effective Date") and shall terminate on July 1, 2002, subject to
earlier termination and extension as hereinafter provided (the "Term").  Thereafter, and subject to Section 8(d),
this Agreement may be renewed for successive one-year terms if the Company
gives written notice of its election to renew this Agreement at least thirty
(30) days prior to the end of the then current period.  In the event of such extension, all of the terms
and conditions of this Agreement shall remain in full force and effect.

             3.          Duties.  During the Term, the Employee shall serve as
President of Managed Vision Care and Chief Financial Officer of the
Company.  The Employee shall report
directly to the Chief Executive Officer of the Company and shall have those
duties established by the Chief Executive Officer, provided, that any such
duties should be reasonable consistent with those typically performed by the
Chief Financial Officer.  During the
Term, Employee agrees that he will devote his full business time, attention and
energies to the business of the Company and its subsidiaries and affiliates, if
applicable, and to the performance of his duties hereunder, and shall not
engage in any other business, profession, or occupation for compensation or
otherwise.

             4.          Compensation.

                           (a)         Base Compensation.  During the term of this Agreement, the
Company shall pay to Employee a salary at an annual rate of not less than
$275,000 (the "Base Salary"). 
The Base Salary shall be reviewed by the Board of Directors of the
Company (the "Board") from time to time as the Board deems
appropriate and any possible increase thereof shall be in the sole discretion
of the Compensation Committee of the Board.. 
In the event of any increase from time to time, the term "Base
Salary" as defined herein shall mean the initial Base Salary as it may
have been increased.  The Base Salary
shall be payable in arrears during the Term in substantially equal installments
in accordance with the Company's payroll practices, which, in any event, shall
not be less frequently than one a month or in such other installments as the
parties may mutually agree.

                           (b)        Bonus. Beginning with calendar
year 2001, Employee shall be eligible to receive, in addition to his Base
Salary, a bonus (the “Bonus”) for services rendered during such year as
follows:

             (i)          Except
as is provided in Section 4(b)(ii) below, no Bonus shall be paid with respect
to any calendar year unless greater than 90% of Target EBITDA (as defined
below) is exceeded for such year.  The
Bonus shall be 50% of Base Salary if Target EBITDA is achieved for such year
and shall be 100% of Base Salary if 137% of Target EBITDA is achieved or
exceeded for such year.  If EBITDA
achieved for any calendar year exceeds 90% of Target EBITDA but does not exceed
Target EBITDA, the Bonus shall be such percentage of Base Salary between 0% and
50%, calculated on a straight line basis, as corresponds to the relative
achievement of Target EBITDA, with 0% corresponding to 90% Target EBITDA and
50% corresponding to Target EBITDA.  If
EBITDA achieved for any calendar year exceeds Target EBITDA but is equal to or
less than 137% Target EBITDA, the Bonus shall be such percentage of Base Salary
between 50% and 100%, calculated on a straight line basis, as corresponds to
the relative achievement of Target EBITDA, with 50% corresponding to Target
EBITDA and 100% corresponding to 137% of Target EBITDA.

             (ii)         “EBITDA” shall mean earnings after the reduction for the
Bonus and all other bonuses payable to all other employees of the Company or
its subsidiaries and before reduction for the following items (without
duplication): (A) interest (including but not limited to acquisition interest
and interest from the credit facility used on an ongoing basis by the Company
for working capital and expansion), (B) income tax, (C) depreciation, (D)
amortization, and (E) non-recurring, extraordinary items as defined under
generally accepted accounting principles. 
“Target EBITDA” shall be established annually by the Board or, at the
discretion of the Board, by the Compensation Committee and shall be set forth
in the management plan approved annually by the Board after consultation with
management.

             

             (iii)        Each Bonus, if any, shall be paid 30 days following the
rendering of audited financial statements for the relevant fiscal year (with
respect to each such preceding fiscal year, the “Payment Date”), subject to
Executive’s continued employment with the Company on the Payment Date except to
the extent otherwise provided in Section 8.

             (iv)       Notwithstanding anything to the contrary set forth herein,
Employee's Bonus for the fiscal year 2001, provided that the Employee's
employment with the Company has not otherwise been terminated prior to the Payment
Date for the fiscal year 2001, shall equal at least (i) 50% of the Base Salary
payable to the Employee during fiscal year 2001 after the Effective Date,
multiplied by (ii) a fraction, the numerator of which is the number of days
during the fiscal year 2001 during which the Employee was employed with the
Company under the terms hereof after the Effective Date, and the denominator of
which is 365.

                           (c)         Reimbursement of Expenses;
Automobile.  The Company shall
reimburse Employee, in accordance with the Company's policy in effect from time
to time, for all reasonable travel, entertainment and other business expenses
incurred by Employee in the performance of his duties and responsibilities
hereunder.  Employee will receive an
automobile allowance of $600 per month and will be reimbursed for his
reasonable automobile insurance costs in accordance with the Company's
automobile allowance policy.

                           (d)        Stock Option Plan.  Employee shall be eligible to participate in
any equity incentive plan adopted by the Company in which the Employee is
otherwise entitled to participate, and the Company shall grant the Employee
options thereunder to purchase at least 32,500 additional shares of the
Company's Common Stock (in addition to any options granted or shares held by the
Employee as of the date hereof) governed solely by the terms of such plan, as
it may be in effect from time to time, and the terms of the Stock Option
Agreement evidencing the grant of such options.

                           (e)         Net Payments.  The amount of any gross payments provided
for in this Agreement shall be paid net of any applicable withholding required
under federal, state or local law.

             5.          Benefits.  Employee shall be entitled to receive the
benefits made available or applicable from time to time to the employees of the
Company; provided, however, that the receipt of such benefits by Employee shall
be subject to the Company's eligibility and enrollment requirements pertaining
to such benefit programs.

             6.          Confidentiality and Competitive
Activities.

                           (a)         Confidentiality.  Employee acknowledges that during his
employment with the Company, the Company has and will continue to disclose to
him the confidential affairs and proprietary information of the Company and its
subsidiaries and affiliates which is developed by and belongs to the Company
and its subsidiaries and affiliates, including matters of a business nature
such as information about costs, profits, markets, sales, trade secrets,
potential patents and other business ideas, customer lists, supplier and vendor
lists, plans for future developments and/or acquisitions, and information of
any other kind not known within the optical retail industry generally
(collectively, "Confidential Matters").  Employee further acknowledges that the Company would not hire
Employee or disclose these Confidential Matters to Employee without the
promises made by Employee in this Section 6. 
In light of the foregoing, Employee agrees:

(i)          To keep secret all Confidential
Matters of the Company and of any subsidiaries and affiliates of the Company,
and not to disclose them to anyone outside of the Company or its subsidiaries
or affiliates, or otherwise use them or use his knowledge of them for his own
benefit or for the benefit of any third party, including, without limitation,
use of the trade secrets, trade names or trademarks of the Company, either
during or after the Term, except with the Company's prior written consent; and

(ii)         To deliver promptly to the Company at
the termination of the Term, or at any time the Company may request, all memoranda,
notices, records, reports and other documents (and all copies thereof) relating
to the business of the Company or any of its subsidiaries or affiliates,
including, but not limited to, Confidential Matters, which he may then possess
or have under his control.

Notwithstanding any of the foregoing, the
term "Confidential Matters" does not include information which (i) is
or becomes generally available to the public other than as a result of any
disclosure by Employee or (ii) Employee is compelled to disclose by judicial or
administrative process; provided, that in the case of any such requirement or
purported requirement Employee shall provide written notice to the Company
prior to producing such information, which notice shall be given at least ten (10)
days prior to producing such information, if practicable, so that the Company
may seek a protective order or other appropriate remedy.

                           (b)        Competitive Activities.  Employee expressly recognizes and
acknowledges that the terms and condition of this Section 6(b) are reasonable
as to time, area, and scope of restricted activity, necessary to protect the
legitimate interests of the Company, and are not unduly burdensome to
Employee.  For a period commencing on the
Effective Date and ending twenty-four (24) months following the effective date
of a termination of Employee's employment (for any reason whatsoever other than
termination by the Company without Cause or if the Company elects not to renew
the Term as provided in Section 2 hereof), Employee shall not, without the
written consent of the Company, directly or indirectly (whether for
compensation or otherwise), alone or as officer, director, stockholder
(excepting not more than 1% stockholdings for investment purposes in securities
of publicly held and traded companies), partner, associate, employee, agent,
principal, trustee, salesman, consultant, capacity, take any action in or
participate with or become interested in or associated with of any firm or
person which engages in Optical Retailing in any geographic area (for purposes
of this Agreement, “Optical Retailing” shall be defined as any retail company
in which gross sales from the sale of optics and optical related devices (such
as eyeglasses and eye contact lenses) is greater than fifteen (15%) percent of
its total gross sales)..  (Such
activities are hereinafter referred to as the "Competitive
Activities").

                           (c)         Antisolicitation.  Employee agrees that during the Term of this
Agreement, and for a period of two (2) years thereafter, he will not influence
or attempt to influence customers (including customers with respect to managed
care plans), vendors or suppliers of the Company or any of its present or
future direct or indirect subsidiaries or affiliates, either directly or
indirectly, to divert their business from the Company or any o fits direct or
indirect subsidiaries or affiliates to any individual, partnership, firm,
corporation or other entity then in competition with the business of the
Company or any subsidiary or affiliate of the Company; provided this
prohibition shall not apply to general advertisements in newspaper or other
widely distributed publications, media, or mail, whether electronic or
otherwise.

                           (d)        Soliciting Employees.

(i)          Employee agrees that during the Term
of this Agreement, and for a period of two (2) years thereafter, he will not,
without the prior written consent of the Company, directly or indirectly engage
in efforts to induce any employees of the Company to terminate their employment
for the purpose of being employed by another business entity and shall not
directly or indirectly employ, or offer employment to any such person in any
activity unless such person shall have ceased to be employed by the Company and
such cessation of employment shall have occurred at least twelve (12) months
prior thereto.

(ii)         Employee agrees that during the Term of
this Agreement, and for a period of two years thereafter, he will not disclose
the names or positions of any of the Employer's employees to any business,
including but not limited to employment agencies, executive search firms or
similar personnel placement businesses.

                           (e)         Comments Regarding the Company.  The Company and Employee agree that during
Employee's employment and following Employee's separation from employment with
the Company, Employee will not defame, disparage or in any way malign the
Company, its officers, directors or past and present employees to anyone,
including but not limited to prospective employers, competitors, vendors or
suppliers to the Company, and current or former employees of the Company.  The Company agrees that it will not defame,
disparage or malign Employee in any way to any third party.

             7.          Remedies for Breach.  In addition to the rights and remedies
provided in Section 14, and without waiving the same if Employee breaches, or
threatens to breach, any of the provisions of Section 6, the Company shall have
the following rights and remedies, in addition to any others, each of which
shall be independent of the other and severally enforceable:

(a)         The right and remedy to have such
provisions specifically enforced by any court having equity jurisdiction
together with an accounting for any benefit or gain by Employee in connection
with any such breach.  Employee
specifically acknowledges and agrees that any breach or threatened breach of
the provisions of Section 6 will cause irreparable injury to the Company and
that money damages will not provide an adequate remedy to the Company.  Such injunction shall be available without
the posting of any bond or other security.

(b)        The right and remedy to require Employee
to account for and pay over to the Company all compensation, profits, monies,
accruals, increments or other benefits (hereinafter collectively the
"Benefits") derived or received, directly or indirectly, by Employee
as a result of any transactions constituting a breach of any of the provisions
of Section 6.  Employee hereby agreeing
to account for and pay over the Benefits to the Company.

(c)         The right to terminate Employee's
employment pursuant to Section 8(c).

(d)        Upon discovery by the Company of a
breach or immediate and material threatened breach of Section 6, the right to
immediately suspend payments to Employee under Section 8, pending a resolution
of the dispute.

             If
any covenant contained in Section 6 or any portion thereof is hereafter
construed to be invalid or unenforceable, the same shall not affect the
remainder of the covenant or covenants contained therein, which shall be given
full effect, without regard to the invalid portions, and any court having
jurisdiction shall reform the covenant to the extent necessary to cause the
limitations contained therein as to time, geographical area and scope of
activity to be restrained to be reasonable and to impose a restraint that is
not greater than necessary to protect the goodwill and other business interest
of the Company and to enforce the covenant as reformed.  The parties hereto intend to and hereby
confer jurisdiction to enforce the covenant as reformed.  The parties hereto intend to and hereby
confer jurisdiction to enforce the covenants contained in Section 6 upon the
courts of any state or other jurisdiction in which any alleged breach of any
such covenant occurs.  If the courts of
any of one or more of such states or other jurisdictions shall hold such
covenants not wholly enforceable by reason of the scope thereof or otherwise,
it is the intention of the parties hereto that such determination not bar or in
any way affect the Company's right to the relief provided above in the courts of
any other states or jurisdictions as to breaches of such covenants in such
other respective states or jurisdictions, and the above covenants as they
relate to each state or jurisdiction being, for this purpose, severable into
diverse and independent covenants.

             8.          Termination of Agreement.

                           (a)         Death.  This Agreement shall automatically terminate upon the death of
Employee.  During the Term, if
Employee's employment is terminated due to his death, Employee's estate shall be
entitled to receive the Base Salary set forth in Section 4 accrued through the
date of death; provided, however, Employee's estate shall not be entitled to
any Bonus payments (except as otherwise provided in the applicable bonus plan)
or any other benefits (except as provided by law).

                           (b)        Disability.  If Employee is unable to perform his
services by reason of mental or physical Disability (as herein defined), the
Company may terminate this Agreement at any time.  Upon termination of Employee's employment due to Disability,
Employee shall be entitled to receive the Base Salary set forth in Section 4
accrued through the date on which Employee is first eligible to receive payment
of disability benefits under the employee benefit plans as then in effect, and
if no such plan is in effect, through the month ending one hundred eighty (180)
days after onset of Disability and Employee shall not be entitled to any Bonus
payments (except as otherwise provided in the applicable bonus plan) or any
other benefits (except as provided by law). 
The term "Disability" shall mean an infirmity preventing
Employee from performing his duties for a period of more than three (3)
consecutive months where no reasonable accommodation is available or where a
reasonable accommodation would create an undue burden on the Company.  Any question as to the existence of the
Disability of Employee as to which Employee and the Company cannot agree shall
be determined in writing by a qualified independent physician mutually
acceptable to Employee and the Company. 
If the Employee and the Company cannot agree as to a qualified
independent physician, each shall appoint such a physician and those two
physicians shall select a third who shall make such determination in
writing.  In the event that the
physicians selected by the Company and the Employee shall be unable to agree
upon a third independent physician, the determination hereunder shall be made
by the physician selected by a majority of the Board.  The determination of Disability made in writing to the Company
and Employee shall be final and conclusive for all purposes of the Agreement.

                           (c)         Termination for Cause.  The Company may terminate this Agreement at
any time for "Cause" in accordance with the procedures provided
below.  Termination of this Agreement
for "Cause" shall mean termination upon (i) the breach of any
material provision of this Agreement by Employee which has not been rectified
or cured within 30 days after notice by the Company to the Employee containing
in reasonably specific detail the violation or breach and the necessary
corrective action to rectify or cure such violation or breach, (ii) commission
of an act punishable by imprisonment, (iii) willful failure to substantially
perform his duties hereunder (other than as a result of total or partial incapacity
due to physical or mental illness) which has not been rectified or cured within
thirty (30) days after notice by the Company to the Employee containing in
reasonably specific detail the acts or omissions complained of and the
necessary corrective action to rectify or cure the matters set forth in such
notice; provided, however, if the actions or omissions that are the subject of
such notice are substantially similar to acts or omissions with respect to
which the Employee has received notice hereunder within the prior twelve (12)
months and had an opportunity to cure or rectify, the Employee shall not be
entitled to such notice and opportunity to cure, (iv) the engaging by Employee
in conduct that is materially injurious to the Company, monetarily or otherwise,
including, without limitation, embezzlement, fraud, theft, dishonesty,
misfeasance, insubordination, malfeasance, and neglect of duties, (v) violation
of the Company's code of conduct or any material violation or repeated
violations by Employee of the other policies and procedures promulgated from
time to time by the Company, or (vi) current alcohol or drug abuse by
Employee.  In the event of termination
of Employee's employment for Cause, Employee shall be entitled to receive only
the Base Salary set forth in Section 4 accrued through the date of termination
and he shall not be entitled to any Bonus payments or other benefits (except as
provided by law).

                           (d)        Other Termination by the Company.  The Company may terminate this Agreement at
any time without "Cause" by providing written notice to
Employee.  If the Company terminates
this Agreement at any time without Cause (i.e., other than pursuant to Section
8(b) or 8(c) above), or the Company elects not to renew the Term as provided in
Section 2 hereof, the Company shall continue to pay Employee his Base Salary
for a period of twelve (12) months following the date of termination of
employment, the timing and manner of such payments to be in accordance with the
salary payment arrangements in effect at the time of such termination.  Employee shall be required to comply with
Section 6.  It shall be a condition
precedent of payment to Employee of such continued payments pursuant to this
subsection (d) that the Employee execute a full and complete release of the
Company, each of its subsidiaries affiliates and their respective past, present
and future officers, directors, employees, consultants, attorneys, agents and
shareholders, in form and substance reasonably acceptable to the Company, of
any claims Employee may have against any of them, to the extent such claims
arise from Employee's employment hereunder. 
Notwithstanding any provision in this Agreement to the contrary, the
Company's obligations to make payments pursuant to this Section 8(d) shall
immediately terminate in the event that the Employee engages in any of the
Competitive Activities (even if Section 6(b) is not applicable due to
termination of employment without Cause).

                           (e)         Termination by Employee.  Employee may terminate this Agreement upon
thirty (30) days prior written notice to the Company.  Termination shall be effective at the expiration of the notice
period.  All obligations of the Company
under this Agreement shall end on the effective date of termination and the
Company shall have no further obligations under this Agreement, including but
not limited to payment of salary, bonuses or any similar compensation or
benefits.  Notwithstanding the notice
provided by Employee, the Company, in its sole discretion, may choose to accept
Employee's resignation immediately.  In
that event, the Company's only obligation to Employee will be to pay the Base
Salary Employee would have received during the notice period.

                           (f)         Mitigation.  Employee shall not be required to mitigate
the amount of any payment or benefit to be provided pursuant to Section 8(d)
("Severance") by seeking other employment.  However, anything in this Agreement notwithstanding, if Employee
provides services for other than de minimus pay to anyone other than the
Company or any of its subsidiaries or affiliates ("Third Party
Services") during a period in which he is receiving such Severance (the
"Severance Period"), the amount of Severance to be paid to Employee
with respect to such Severance Period shall, beginning on the date such payment
for Third Party Services is received by employee, be reduced by the lesser of
(i) fifty percent (50%) of such Severance payment, or (ii) fifty percent (50%)
of such payment for Third Party Services rendered.

             9.          Effect of Termination.  Upon the termination of this Agreement,
whether by the expiration of the Term specified in Section 2 or pursuant to
Section 8, the rights of Employee which shall have accrued prior to the date of
such termination shall not be affected in any way.  Except as provided in Section 8(d), Employee shall not have any
rights which have not previously accrued upon termination of this Agreement.

             10.        Communications.  All notices and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given
when (a) delivered by hand (with written confirmation of receipt), (b) when
received by the addressee, if sent by a nationally recognized overnight
delivery service (receipt requested), in each case to the respective addresses
set forth below, or to such other addresses as either 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; to the Company; the
Company, at c/o Eye Care Centers of America, Inc., 11103 West Avenue, San
Antonio, Texas  78213-1392, to the
attention of the Chief Executive Officer David McComas; and to Employee:  Alan Wiley, 507 Blackjack Oak, San Antonio,
Texas 78230.

             11.        Amendments or Additions.  No amendments or additions to this Agreement
shall be binding unless in writing and signed by all parties hereto.

             12.        Binding Effect; Assignability.  This Agreement shall be binding upon, and
shall inure to the benefit of, Employee; the obligations of Employee hereunder
are personal and this Agreement may not be assignable by Employee.  This Agreement is completely assignable by
the Company without notice to or consent of Employee.  This Agreement shall be binding upon, and shall inure to the
benefit of, the Company and shall also bind and inure to the benefit of any
successor of the Company by merger or consolidation or any assignee of all or
substantially all of its properties.

             13.        Headings; References.  The headings used in this Agreement are
included solely for convenience and shall not affect, or be used in connection
with, the interpretation of this Agreement. 
References to a "Section" when used without further
attribution shall refer to the particular sections of this Agreement.

             14.        Binding Arbitration.  Subject to the rights of any party to seek
injunctive relief pursuant to Section 7 above and without waiving the same, the
parties agree that all disputes, controversies or claims that may arise among
them (including their agents and employees), arising out of or relating to this
Agreement, or the breach, termination or invalidity thereof, shall be submitted
to, and determined by, binding arbitration. 
Such arbitration shall be conducted before a single arbitrator pursuant
to the Commercial Arbitration Rules then in effect of the American Arbitration
Association, except to the extent such rules are inconsistent with this Section
14.  The arbitrator shall apply the laws
of the State
of Texas (without regard to conflict of law rules) in determining
the substance of the dispute, controversy or claim and shall decide the same in
accordance with applicable usages and terms of trade.  The fees of the arbitration initially shall be paid one-half by
the Company and one-half by the Employee; provided, however, that the
prevailing party in any such arbitration shall be entitled to recover its
reasonable attorneys' fees, costs and expenses incurred in connection with the
arbitration.  Any award pursuant to such
arbitration shall be final and binding upon the parties, and judgment on the award
may be entered in any federal or state court sitting in any court having
jurisdiction.  The obligations set forth
in this Section 14 shall survive the termination of this Agreement.  THE COMPANY AND EMPLOYEE EACH KNOWLINGLY AND
VOLUNTARILY GIVE UP ANY RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY
DISPUTE, CLAIM OR CONTROVERSY WHICH MAY ARISE BETWEEN THEM.

             15.        Miscellaneous.  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 Employee and such officer as may be
specifically designated by the Board. 
No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of Texas without regard to its conflicts
of law principles.

             16.        Surviving Provisions.  The obligations of the Company under Section
8, of Employee under Section 6, and of both the Company and Employee under
Section 14 shall survive the expiration of the Term of this Agreement.

             17.        Entire Agreement.  This Agreement shall constitute the entire
agreement between the parties superseding all prior agreements and all other
negotiations, letter of intent, memoranda of understandings, and
representations (if any) made by and among such parties, and may not be
modified or amended, and no waiver shall be effective, unless by written
document signed by both parties hereto. 
The Company and Employee have each had an opportunity to consult with
counsel of their choice regarding the terms and conditions of this Agreement,
and each understands the consequences of entering into and complying with the
terms and conditions of the Agreement. 
The Company and the Employee hereby acknowledge and agree that the
Employment Agreement dated as of November 1, 1998 between the Company and the
Employee shall be terminated and the provisions contained therein shall be of
no further force and effect as of the Effective Date.

             18.        Pronouns.  In this Agreement, the use of any gender
shall be deemed to include all genders, and the use of the singular shall
include the plural, wherever it appears appropriate from the context.

             19.        Enforcement Costs.  If any legal action or other proceeding,
including arbitration, is brought for the enforcement of this Agreement, or
because of an alleged dispute, breach, default or misrepresentation in
connection with any provisions of this Agreement, the prevailing party or
parties shall be entitled to recover reasonable attorneys' fees, court costs
and all expenses even if not taxable as court costs, incurred in that action or
proceeding, in addition to any other relief to which such party or parties may
be entitled.

             20.        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,
provided, however, that to the extent any court determines that Section 6 is
invalid or unenforceable, the Company shall be relieved of its payment
obligations to Employee under Section 8.

             21.        Indemnification.  Employee shall be entitled to
indemnification, in has capacity as an officer of the Company in accordance
with the provisions of the Company's certificate of incorporation, bylaws or
actions of the Board, as the same shall be in effect from time to time, and
Employee shall be entitled to the protection of any insurance policies Company
may elect to maintain generally for the benefit of its officers or directors.

             22.        Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original and all of
which, taken together, shall constitute one and the same instrument.

             IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
day and year first above written.

 

	 	Eye
  Care Centers of America, Inc.
	 	 
	 	By:	

	 	 	Name:  David E. McComas
	 	 	Title:  Chief Executive Officer
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	

	 	 	Alan
  E. Wiley
	 	 	President
  Managed Vision Care and
	 	 	Chief
  Financial OfficerPrepared by MerrillDirect

EXE Technologies, Inc.

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

             THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the
“Agreement”) is made on this 29th day of June 2001 by and between Kenneth J.
Powell, 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 and order
fulfillment and related services for warehouse, distribution and logistics
facilities worldwide (the "Business"),

             WHEREAS, the Company hired the Employee on March 29,
2001 (the “Start Date”) pursuant to a Summary of Terms dated March 20, 2001
(the “Term Sheet”);

             WHEREAS, the Term Sheet contemplated that it would be
superceded by a definitive employment agreement;

             WHEREAS, the Company and the Employee entered into an
Employment Agreement dated May __, 2001 (the “Employment Agreement”) to
supercede the Term Sheet;

             WHEREAS, the Company and the Employee desire to restate
the Employment Agreement for the purposes of clarifying certain terms; and

             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 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 as
President and Chief Operating Officer of the Company and will 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 of the Company (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 President and Chief Operating 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, professional or civic activities, personal investments; serving as
an executor, trustee or in other similar fiduciary capacity; and serving as a
director of other entities that are not competitive with the Company; provided
that such activities do not interfere 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.

             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 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 quarter, the Company will pay a cash bonus to the Employee based upon
the achievement of criteria to be determined as mutually agreed upon in writing
by the Employee and the Reporting Manager within sixty (60) days of the Start
Date.  The Employee’s annualized bonus
target will be Two Hundred Twenty-Five Thousand Dollars ($225,000).  The Employee’s actual bonus payments will
vary depending on Company performance and will be payable quarterly in
accordance with the Company’s normal practices.

                           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. Such
programs are described in Schedule E attached hereto.

                           4.5          Reimbursement of Expenses.  The Employee shall be promptly 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.

             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 three (3) 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 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 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
7(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 and order fulfillment and related services for
warehouse, distribution and logistics facilities (a “Competitive Business”);

                                        (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 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 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), and provided that the Employee has
complied with all of his obligations under this Agreement and continues to
comply with all of the surviving obligations listed in Section 10, the Employee
shall be entitled to receive:  (i)
continuation of the Base Salary in effect as of the date of such termination
for a period of twelve (12) months following the date of termination, payable
on the Company’s standard payroll cycle; (ii) the Employee’s annual bonus
prorated to 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 twelve (12) 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 bonus for the twelve (12) month period specified in
8.2(i) above, in an amount equal to (A) the percentage of annualized target
bonus actually received in the aggregate by the Employee for the final fully
served four (4) calendar quarters, multiplied by (B) the Employee’s current
annualized target bonus on the date of termination, which bonus shall be paid
in a lump-sum thirty (30) days following the date of Employee’s death; (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 to Employee.

                           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)          material breach by the Employee of the
Employee’s obligations under this Agreement and the Employee’s failure to cure
such breach within thirty (30) days following written notice to cure such
breach by the Company;

                                                     (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
or the Board of Directors of the Company in his or its sole reasonable
discretion and the Employee’s failure to cure such conduct within thirty (30)
days following written notice by the Company;

                                                     (iii)        conduct of the Employee involving any
type of disloyalty to the Company or willful misconduct with respect to the
Company, including without limitation fraud, embezzlement, theft or proven
dishonesty in the course of the employment, or 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)       a final and non-appealable conviction of
a felony related to the Company or its Business; or

                                                     (v)        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.  The unvested portion, if any,
of the Option shall be canceled at the time of such termination, and the
Employee shall not be entitled to exercise any such 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 thirty (30) days 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 remainder of the Term and all accrued,
but unpaid (at the date of termination) benefits and bonuses; (ii) severance
equal to one (1) year’s Base Salary (at the date of termination), payable in
twelve (12) equal monthly installments in accordance with the Company’s payroll
practices; (iii) 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 twelve (12) months following his actual termination
date; (iv) the right to exercise any stock option which is exercisable by
Employee on the date of the termination of his employment; and (v) 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.

                           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 President and Chief
Operating 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 President and Chief Operating 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 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.  Thereafter, the remaining unvested balance
of each accelerated option shall vest in equal monthly installments over the
balance of the original 4-year vesting period. 
Thus, by way of illustration, if a Change of Control occurred 18 months
after the date of grant, then (i) 31.25% of the options would accelerate upon
the Change of Control because 37.50% was already vested; and (ii) the remaining
unvested portion of 31.25% would vest 1.04% per month over the remaining 30
months of the original vesting period.

                                        (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 fifty
percent (50%) 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 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:

             Ken Powell

             

             with a copy to:

             Stuart E. Blaugrund, Esquire

             Gardere Wynne Sewell LLP

             1601 Elm Street, Suite 3000

             Dallas, Texas  75201-4761

             Fax:  214-999-4667

             If to the Company:

             EXE Technologies, Inc.

             8787 Stemmons Freeway

             Dallas, TX  75247

             Attention:  CFO

             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 to the employment of the Employee with the
Company, including but not limited to, the Term Sheet and the Employment Agreement.  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.

             21.        Consent
to Suit.  Any dispute relating to
the rights and obligations of the parties set forth in Section 5, 6 and 7
hereof may only be brought in the Courts of the State of Texas in and for the
County of Dallas or in the United States District Court for the Northern
District of Texas, Dallas Division.  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 United States District
Court for the Northern District of Texas, Dallas Division provided that such
Federal Court has subject matter jurisdiction over such dispute, and the
Employee hereby waives any claim he may have at any time as to forum non
conveniens with respect to such venue. 
Any judgment entered against either of the parties in any proceeding
hereunder may be entered and enforced by any court of competent
jurisdiction.  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:  CEO
	 	

	/s/ Ken Powell
	

	EMPLOYEE

SCHEDULE A

EMPLOYMENT and COMPENSATION

	Position:	President & Chief
  Operating Officer

	Reporting Manager:	Ray Hood - CEO

	Start Date:	March 29, 2001

	Base Salary:	$275,000

	Bonus:	$225,000 target, 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, OMI, HK Systems, McHugh Software, SAP supply chain unit and
  Oracle supply chain unit.

 

Initial Stock Option Grant:

A stock option to
purchase 1,000,000 shares of Common Stock of the Company will be granted to the
Employee on or about the Start Date. 
The Option grant shall be an incentive stock option to the maximum
extent permitted by law. The exercise price will be determined by the Stock
Option Committee of the Company.  The
vesting will be as follows:

(a) 250,000 shares on
the first anniversary of the Start Date; and

(b) the remaining
750,000 shares at a rate of 2.0833% per month on the last day of each month
following the first anniversary of the Start Date.

SCHEDULE B

RESPONSIBILITIES

JOB DESCRIPTION

[TO BE ADDED]

 

SCHEDULE C

EXE TECHNOLOGIES, INC.

1997 INCENTIVE AND
NON-QUALIFIED STOCK OPTION PLAN

[PREVIOUSLY PROVIDED]

SCHEDULE D

PRIOR INVENTIONS

1.          None.

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.

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