RESTATED AND AMENDED EMPLOYMENT AGREEMENT

Exhibit 10.4

This Agreement is entered into by and between August Technology Corporation (“August Technology”), a Minnesota corporation, with its principal place of business at 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000, and D. Xxxxxx Xxxxxx of [Address] (“Employee”). This Agreement has been restated and amended effective as of July 29, 2014. For all purposes of the Agreement, reflecting the merger of August Technology with and into Xxxxxxx Technologies, Inc. effective as of February 15, 2006, references in the Agreement to August Technology or the Company shall mean Xxxxxxx Technologies, Inc.

WHEREAS, Employee desires employment with Company or has been employed with Company and wishes to continue employment under the terms and conditions set forth in this Agreement;

WHEREAS, Employee acknowledges and agrees that he has and will continue to have access to confidential, proprietary and trade secret information in the course of his employment and continued employment with Company, the unauthorized use or disclosure of which would cause irreparable harm to Company;

WHEREAS, Company and Employee wish to set forth the terms of their agreement in writing;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein and for other good and valuable consideration the receipt and sufficiency of which is specifically acknowledged by the parties, Company and Employee agree as follows:

1.Employment. Company agrees to employ or continue to employ Employee, effective March 1, 2002, and Employee accepts employment or continued employment, upon the terms and conditions set forth in this Agreement.

2.Term of Employment. Company shall continue to employ Employee for an indefinite duration until his employment is terminated in accordance with Paragraph 8 of this Agreement.

3.Duties and Responsibilities. Employee shall devote his time, attention and best efforts to the duties and responsibilities of his position, and to the business and affairs of Company. Employee’s title shall be as set forth in Exhibit A as “Employee’s Title”, reporting to the person or office as set forth in Exhibit A as “Manager”. Employee shall perform all duties and responsibilities of the position he holds with Company as those duties and responsibilities may change from time to time. Employee shall comply with Company’s standards, policies and procedures in effect and as they may change from time to time; provided that to the extent such policies and procedures are inconsistent with this Agreement, the provisions of this Agreement shall control.

4.Compensation. Company shall pay Employee a gross annual salary as set forth in Exhibit A as “Base Salary”, less appropriate payroll deductions. Employee may also receive incentive compensation in accordance with the Annual Incentive Plan, as issued and as may change from time to time by the Company, or any other similar plan authorized by the Board of Directors. Employee’s compensation may be periodically increased or adjusted as authorized by the Board of Directors in the case of the Chief Executive Officer, or, in the case of all others, as recommended by the Chief Executive Officer and approved by the Board of Directors.

5.Business Expenses. Company will, in accordance with its policies and practices as such may change from time to time, reimburse Employee for all ordinary and necessary business expenses after receipt of appropriate documentation of such expenses.

6.Benefits. Employee shall be entitled to insurance and other benefits provided to key management employees in accordance with applicable plan documents and commensurate with vice president and higher positions within the Company. Benefits provided to employees are subject to change in the discretion of Company.

7.Stock Options. At the discretion of Company, Employee may be granted stock options from time to time, which options shall be subject to the terms and conditions of the Xxxxxxx Technologies 2009 Stock Plan, as amended from time to time, or any successor plan, and the related stock option agreements. Further, Employee shall be eligible to participate in the Xxxxxxx Technologies 2009 Employee Stock Purchase Plan, as amended from time to time, or any successor plan, subject to the terms and conditions contained therein.

8.Termination. Employee’s employment under this Agreement may be terminated:


(a)	At any time upon mutual written agreement of the parties;


(b)	By either Employee or Company at any time, with or without cause, upon thirty (30) days’ written notice to the other;


(c)	By Company immediately upon notice to Employee for cause which shall be defined as:


(1)	Employee’s material failure or neglect, or refusal to perform, the duties and responsibilities of his position and/or the reasonable direction of the Board of Directors or his superiors;


(2)	Commission by Employee of any willful, intentional or negligent act that has the effect of injuring the reputation, business or performance of Company;


(3)	Employee’s conviction of a crime, or commission of any act involving moral turpitude;


(4)	Any material default or nonperformance of the terms of this Agreement, or any violation of Paragraphs 10, 11, 12, 14 and/or 15 of this Employment Agreement; or


(d)	Immediately upon Employee’s death.

Upon Employee’s resignation or termination under this Paragraph 8 for any reason, Company shall pay Employee his Base Salary through the Employee’s last date of employment, and any accrued and unused vacation or other paid time off through the Employee’s last date of employment. Employee’s entitlement to any vested pension, profit sharing or other benefits shall be governed by applicable plan documents. In the event Employee’s employment is terminated either by Employee or Company under Paragraph 8(b), Company may elect, in its sole discretion, to pay Employee his salary for the thirty (30) day notice period in lieu of Employee’s continued performance of duties during the notice period. In the event Employee is terminated by Company in accordance with Paragraph 8(b) above, without cause, Company shall, in addition to the above, pay Employee a severance at his then current Base Salary rate for the time period set forth in Exhibit A as “Severance Period”, to be paid according to the normal payroll schedule, directly following the thirty (30) day notice period, and Company shall, if the Employee elects to continue group health or other group benefits as allowed by COBRA, make the COBRA payments for the Severance Period. Employee shall not be entitled to any further or other payments or benefits of any kind upon the Employee’s termination or resignation under this Paragraph 8. In the event, Employee is entitled to Change in Control benefits as set forth in Paragraph 9, Employee shall not be entitled to any severance or notice rights under this Paragraph 8.

9.Change in Control. If, within eighteen (18) months following a Change in Control (as defined below), Employee’s employment is Terminated (as defined in Section (f) below), then:


(a)	Employee shall be paid his last Base Salary on a regular payroll cycle as of the effective date for the time period as set forth in Exhibit A as “Change In Control Severance Period” from the effective date of such termination;


(b)	For the same Change In Control Severance Period from the effective date of such termination as set forth in Paragraph 9(b), the Company shall, if Employee elects to continue group health or other group benefits as allowed under COBRA, make the COBRA payments for the Change In Control Severance Period;

(c)

All unvested options, restricted stock units or other equity awards granted in accordance with the Stock Plan (as hereinafter defined) as of the date of this Amendment as well as those granted after the date of this Amendment (“Awards”) shall fully vest and options will immediately be fully exercisable and other Awards will be paid within sixty (60) days of such termination, provided that such Awards have not already vested under the Xxxxxxx Technologies 1999 Stock Plan or the Xxxxxxx Technologies 2009 Stock Plan, as applicable (each as amended to date and including all successor and additional equity compensation plans of the Company, collectively the “Stock Plan”); and

(d)

Limitation on Change of Control Payments. Employee shall not be entitled to receive any Change of Control Action, as defined below, which would constitute an “excess parachute payment” for purposes of Code Section 280G, or any successor provision, and the regulations thereunder. In the event any Change of Control Action payable to Employee would constitute an “excess parachute payment,” then the acceleration

of the exercisability of such stock options, the accelerated vesting of other Awards and the payments to such Participant pursuant to this Paragraph 9 shall be reduced to the largest extent or amount as will result in no portion of such payments being subject to the excise tax imposed by Section 4999 of the Code. For purposes of this Paragraph 9, a “Change of Control Action” shall mean any payment, benefit or transfer of property in the nature of compensation paid to or for the benefit of Employee under any arrangement which is considered contingent on a Change of Control for purposes of Code Section 280G, including, without limitation, any and all salary, bonus, incentive, restricted stock, stock option, compensation or benefit plans, programs or other arrangements, and shall include benefits payable under this Agreement.


(e)	“Change of Control”. For purposes of this Agreement, “Change of Control” shall mean any of the following events occurring after the date of this Agreement:

(1)

A merger or consolidation to which the Company is a party, an acquisition by the Company involving the issuance of the Company’s securities as consideration for the acquired business, or any combination of fully closed and completed mergers, consolidations or acquisitions during any consecutive twenty-four (24) month period, if the individuals and entities who were shareholders of the Company immediately prior to the effective date of such merger, consolidation, or acquisition (or prior to the effective date of the first of a combination of such transactions) have, immediately following the effective date of such merger, consolidation or acquisition (or following the effective date of the last of a combination of such transactions), beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of less than fifty percent (50%) of the total combined voting power of all classes of securities issued by the surviving corporation for the election of directors of the surviving corporation;

(2)

The acquisition of direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of securities of the Company by any person or entity or by a group of associated persons or entities acting in concert in one or a series of transactions, which causes the aggregate beneficial ownership of such person, entity or group to equal or exceed twenty percent (20%) or more of the total combined voting power of all classes of the Company’s then issued and outstanding securities;


(3)	The sale of the properties and assets of the Company substantially as an entirety, to any person or entity which is not a wholly-owned subsidiary of the Company;


(4)	The stockholders of the Company approve any plan or proposal for the liquidation of the Company; or

(5)

A change in the composition of the Board of the Company at any time during any consecutive twenty-four (24) month period such that the “Continuity Directors” no longer constitute at least a seventy percent (70%) majority of the Board. For purposes of this event, “Continuity Directors” means (i) those members of the Board who were directors at the beginning of such consecutive twenty-four (24) month period or at the date of this Agreement if this Agreement was entered into less than twenty-four months prior to the change in composition of the Board; and (ii) any new director whose election to the Board of Directors or nominations for election to the Board of Directors was approved by a vote of at least two-thirds (2/3) of the directors identified in the immediately preceding clause (i).


(6)	The Company enters into a letter of intent, an agreement in principle or a definitive agreement relating to an event described in Paragraph 9(e)(l ), 9(e)(2), 9(e)(3), 9(e)(4), or 9(e)(5) that ultimately results in such a Change of Control, or a tender or exchange offer or proxy contest is commenced that ultimately results in an event described in Paragraph 9(e)(2) or 9(e)(5).

Provided, however, that any transaction or other event described in clauses (1) through(6) above shall not be deemed to constitute a Change of Control under this Agreement unless such transaction or event constitutes a “change in control” under Section 409A of the Internal Revenue Code (“Code”) and the regulations and interpretative guidance thereunder.


(f)	Termination. For purposes of this Paragraph 9, “Termination” shall mean any of the following events occurring within eighteen (18) months after a Change of Control:

(1)

The termination of Employee’s employment by the Company for any reason, with or without cause, except for termination resulting from conduct by Employee constituting (a) a felony involving moral turpitude under either federal law or the law of the State of Minnesota, or (b) Employee’s willful failure to fulfill his employment duties with the Company; provided, however, that for purposes of this clause (b), an act or failure to act by Employee shall not be “willful” unless it is done, or omitted to be done, in bad faith and without any reasonable belief that Employee’s action or omission were in the best interests of the Company; or

(2)

The termination of employment with the Company by Employee for Good Reason. Such termination shall be accomplished by, and effective upon, Employee giving written notice to Company of his decision to terminate. “Good Reason” shall mean a good faith determination by Employee, in Employee’s sole and absolute judgment, that any one or more of the following events has occurred, at any time during the term of this Agreement or after a Change of Control; provided, however, that such event shall not constitute “Good Reason” if Employee has expressly consented to such event in writing or if Employee fails to provide written notice of his decision to terminate within sixty (60) days of the occurrence of such event:


(a)	A material change in Employee’s reporting responsibilities, titles or offices, or any removal of Employee from or any failure to re-elect Employee to any of such positions, which has the effect of materially diminishing Employee’s responsibility or authority;


(b)	A reduction by the Company in Employee’s base salary (as increased from time to time);


(c)	A requirement imposed by the Company on Employee that results in Employee being based at a location that is outside of a twenty-five (25) mile radius of Employee’s prior job location;


(d)	Without the adoption of a replacement plan, program or arrangement that provides benefits to Employee that are equal to or greater than those benefits that are discontinued or adversely affected:


i.	A failure by the Company to continue in effect, within its maximum stated term, any pension, bonus, incentive, stock ownership, stock purchase, stock option, life insurance, health, accident, disability, or any other employee compensation or benefit plan, program or arrangement, in which Employee is or has been participating;


ii.	The taking of any action by the Company that would adversely affect Employee’s participation or materially reduce Employee’s benefits under any of such plans, programs or arrangements; or


(e)	Any action by the Company that would materially adversely affect the physical conditions in or under which Employee performs his employment duties; or


(f)	Any material breach by the Company of this Employment Agreement between Employee and the Company.

Termination for “Good Reason” shall not include Employee’s death or a termination for any reason other than the events specified in clauses (a) through (f) above.

10.Confidential Information. During the term of this Agreement and at all times thereafter, Employee shall not directly or indirectly use or disclose any trade secret, proprietary or confidential information of Company or any subsidiary for the benefit of any person or entity other than Company or any subsidiary without prior written approval of Company’s Board of Directors. For purposes of this Agreement, in addition to all materials and information protected by applicable statute or law, the parties acknowledge that confidential information shall include any information, whether in print, on computer disc or tape or otherwise, which is not public information and which relates to Company or any subsidiary, or Company’s or any subsidiary’s existing or reasonably foreseeable business, including but not limited to information relating to research, development, technology, manufacturing processes, purchasing and sales, information relating to sales and other financial strategies, plans and/or goals, information relating to proprietary rights and data, ideas, know-how, and/or trade secrets, information regarding the identity and/or needs of clients or customers, client or

customer lists and other client or customer information, information regarding active and inactive accounts of Company or any subsidiary, and information relating to Company’s or any subsidiary’s methods of operation.

11.Noncompetition Obligations. As a condition to and in consideration of his employment and continued employment, participation in and payment under the Key Executive Bonus Plans of Company and in exchange for the severance and Change of Control provisions as set forth in Paragraphs 8 and 9 of this Employment Agreement, and the mutual covenants herein, Employee agrees that, during his employment and for a period of one (1) year following his voluntary or involuntary resignation or termination for any reason, the Employee will not, on behalf of himself or any other person or entity:

(a)

Directly or indirectly solicit, on Employee’s own behalf, or on behalf of another, any of Company’s or any subsidiary’s customers or potential customers with whom Employee or Employee’s supervisees had contact, either directly or indirectly, within the twelve months immediately preceding Employee’s resignation or termination of employment, for the purpose of providing, selling, or attempting to sell any products or services competing with those provided or sold by Company or any subsidiary, or clearly contemplated thereby due to research, development, engineering, applications, licensing, or other like projects in process, at the time of resignation or termination; or


(b)	Hire or attempt to hire, or influence or solicit, or attempt to influence or solicit, either directly or indirectly, any employee of Company or any subsidiary to leave or terminate his or her employment, or to work for any other person or entity.

(c)

Directly or indirectly, whether as sole proprietor, partner, silent partner, venturer, stockholder, director, officer, consultant or employee or agent, engage or participate in any employment or activity which involves the sale, distribution, design and/or manufacturing of precision film thickness measurement instruments, defect and yield metrology tools or data analysis systems for use in the semiconductor manufacturing industry or is otherwise competitive with Company’s business within the United States; or


(d)	Directly or indirectly, whether as sole proprietor, partner, silent partner, venturer, stockholder, director, officer, consultant or employee or agent, engage or participate in any employment or activity which may cause him to use or disclose, either intentionally or inadvertently, Company’s confidential information.

12.Work Product and Inventions. Company shall be entitled to all of the benefits, profits, results and work product arising from or incident to all work, services, advice and activities of Employee, including without limitation all rights in inventions (as set forth below), trademark or trade name creations, and copyrightable materials. Employee shall not, during the term of his employment by Company, be interested, directly or indirectly, in any manner, including, but not limited to, as partner, officer, advisor, or in any other capacity in any other business similar to, or in competition with, Company’s or any subsidiary’s business.

Employee agrees to communicate promptly and fully to Company all inventions, discoveries, improvements or designs conceived or reduced to practice by Employee during the period of his employment with Company (alone or jointly with others), and, except as provided in this Paragraph 12, Employee will and hereby does assign to Company and/or its nominees all of the Employee’s right, title and interest in such inventions, discoveries, improvements or designs and all of his right, title and interest in any patents, patent applications or copyrights based thereon without obligation on the part of Company or any subsidiary to make any further compensation, royalty or payment to Employee. Employee further agrees to assist Company and/or its nominee (without charge but at no expense to Employee) at any time and in every proper way to obtain and maintain for its and/or their own benefit, patents for all such inventions, discoveries and improvements and copyrights for all such designs.

This Agreement does not obligate Employee to assign to Company any invention, discovery, improvement or design for which no equipment, supplies, facility or trade secret information of Company or any subsidiary was used and which was developed entirely on Employee’s own time, and (1) which does not relate (a) directly to the business of Company or any subsidiary, or (b) to Company’s or any subsidiary’s actual or demonstrably anticipated research or development, or (2) which does not result from any work performed by Employee for Company or any subsidiary.

13.Exempt Inventions. Identified under Exempt Inventions in Exhibit A by descriptive title are all of the Inventions, if any, in which Employee possesses any right, title or interest prior to Employee’s employment with Company or execution of this Employment Agreement which are not subject to the terms hereof.

14.Copyrights. Employee acknowledges that any documents, drawings, computer software or other work of authorship prepared by Employee within the scope of his employment is a “work made for hire” under U.S. copyright laws and that, accordingly, Company exclusively owns all copyright rights in such works of authorship. For purposes of this paragraph, “scope of employment” means that the work of authorship (a) relates to any subject matter pertaining to his employment, (b) relates to or is directly or indirectly connected with the existing or reasonably foreseeable business, products, projects or confidential information of Company or any subsidiary, or (c) involves the use of any time, material or facility of Company or any subsidiary.

15.Return of Property. Employee shall, immediately upon his involuntary or voluntary resignation or termination from employment for any reason, deliver to Company all documents and other items, whether on computer disc or tape or otherwise, including all copies thereof, belonging to Company or any subsidiary or in any way related to the business of Company or any subsidiary or the services Employee performed for Company or any subsidiary, including but not limited to any documents or items containing trade secret, proprietary, or confidential information, documents in any way relating to any inventions or copyrights, client or customer information, information relating to Company’s or any subsidiary’s processes or procedures and any other materials or documents of any sort relating to Company or any subsidiary. Employee shall not retain any copies or summaries of any kind of documents and materials covered by this Paragraph 15.

16.Remedy upon Violation. Employee and Company agree that a breach or threatened breach of Paragraphs 10, 11, 12, 14 or 15 would cause irreparable harm to Company and/or its subsidiaries, and that monetary damages alone would not be an adequate remedy. Employee agrees that Company and any subsidiary shall be entitled, in addition to any other remedy it may have at law or in equity, to an injunction, without the posting of a bond if allowed by applicable law or with the posting of a minimal bond if required, enjoining or restraining Employee from any violation or violations or threatened violation or violations of Paragraphs 10, 11, 12, 14 and 15, and/or for specific performance of duties and obligations under such paragraphs, and Employee hereby consents to the issuance of such injunction. If any rights or restrictions contained in Paragraphs 10, 11, 12, 14 and 15 shall be deemed to be unenforceable by reason of the extent, duration or geographic scope, or other provision thereof, the parties contemplate that the Court shall reduce such extent, duration or geographic scope or other provision and enforce Paragraphs 10, 11, 12, 14 and 15 in their reduced form for all purposes in the manner contemplated by such Paragraphs.

17.Other Agreements. By Employee’s signature to this Agreement, Employee warrants that he is not subject to any employment, noncompetition, confidentiality, inventions or other obligations or agreements which would prevent or restrict the Employee in any way from accepting employment with Company and fully performing his duties and responsibilities as described in this Agreement. Employee, by his signature to this Agreement, further warrants that he has not taken and will not take any trade secret, proprietary or confidential information of any former employer, and will not use or disclose any such information to anyone in the performance of duties and responsibilities under this Agreement.

18.Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of Company.

19.Notices. All notices and other communications to be given under this Agreement shall be in writing and shall be deemed to be given when delivered personally, or when mailed by registered or certified mail or overnight courier, addressed to the party to whom such notice is intended to be given, at the last known address for that party or at such other address as the party may specify by written notice.


(a)	In the case of Company, the notice shall be provided to:

Xxxxxxx Technologies, Inc.

Xxx Xxxxxxx Xxxx

Xxxxxxxx, Xxx Xxxxxx 00000

Attn: Chief Executive Officer


(b)	In the case of Employee, the notice shall be provided to:

D. Xxxxxx Xxxxxx

[Address]

Either party may, by written notice hereunder, designate a change of address. Any notice, if mailed properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt, and shall be deemed received within the fifth business day thereafter, or when it is actually received, whichever is sooner.

20.Survival of Provisions. Employee acknowledges and agrees that the restrictions and obligations set forth in Paragraphs 10, 11, 12, 13, 14, 15 and 16 of this Agreement are reasonable, shall survive his resignation from or the termination of his employment, and shall apply to him whether his resignation or termination from employment is voluntary or involuntary and regardless of the reason for such resignation or termination.

21.Nonwaivers. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any right or remedy granted hereby or by any related document or by law.

22.Governing Law. This Agreement shall be construed and interpreted according to the laws of the State of Minnesota, without reference to its conflict of laws provisions.

23.Paragraph Headings. Paragraph headings are included in this Agreement for convenience of reference only, and are not intended to be full or accurate descriptions of the contents hereof.

24.Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which shall constitute one (1) and the same instrument.

25.Entire Agreement. This Agreement states the entire Agreement of the parties on the subjects set forth herein, and merges and supersedes all prior agreements and understandings between the parties. No modification, termination, or attempted waiver of any provision of this Agreement will be valid unless it is made in writing and signed by the party against whom the same is sought to be enforced, and is specifically identified as a modification, termination, release, waiver or discharge of this Agreement. If any term, clause or provision of this Agreement shall for any reason be adjudged invalid, unenforceable or void, the same shall not impair or invalidate any of the other provisions contained herein, all of which shall be performed in accordance with their respective terms.

26.General Release. All post-employment termination compensation and benefits arising as a result of termination pursuant to Section 8(b) or 9 hereof, as applicable, are in consideration for Employee’s execution of a general release (“General Release”) of all known and unknown claims that Employee may then have against Company and its officers, directors, employees and affiliates, a form of which is available from Company. If Employee does not properly execute such General Release, the parties expressly acknowledge and agree that Employee will not be entitled to any of the post-employment termination compensation and benefits provided as a result of termination pursuant to Section 8(b) or 9 hereof, as applicable.

27.Code Section 409A. In order to avoid any ambiguity and to further clarify the understanding of the parties as to this Agreement, the parties intend that this Agreement comply with Section 409A of the Code and all regulations or interpretive guidance issued thereunder, and that the payment of any benefits or amounts thereunder and the interpretation of this Agreement will be operated and administered accordingly, provided, however, that the Company makes no representation or warranty to Employee that this Agreement or the payment of any amounts or benefits hereunder will in fact comply with Section 409A of the Code. The parties each acknowledge that as of the date of this Amendment all severance amounts and benefits which would be payable under this Agreement would be exempt from Section 409A of the Code by reason of the severance pay exception under Treas. Reg. 1.409A-1(b)(9)(iii). For purposes of clarification and for the avoidance of ambiguity,

(a)

Employee agrees that if, at the time of termination of employment, Employee is considered to be a specified employee as defined in Section 409A of the Code (as determined as of December 31 preceding the termination of employment, unless the termination of employment occurs prior to April 1, in which case the determination will be made as of the second preceding December 31), then such payments as are to be made under any of such agreements as a result of Employee’s termination of employment will be delayed until the first business day following the date that is six months and a day following such termination of employment (or, if earlier, the date of Employee’s death), if and to the extent the delay in such payments is necessary in order to comply with the requirements of Section 409A of the Code, taking into account the extent to which such payments are exempt from Section 409A of the Code by virtue of the short-term deferral rule under Treas. Reg. Sec. 1.409A-1(b)(4) and/or the severance pay exception under Treas. Reg. Sec. 1.409A-1(b)(9)(iii).

(b)

In the event that any payment is determined to be payable to Employee under this Agreement and under this Agreement such payment is conditioned upon Employee executing (and not thereafter revoking) a release of claims, then if the period during which Employee is entitled to consider the release of claims (and to revoke the release, if applicable) spans two calendar years, then any payment that otherwise would have been payable during the first calendar year will in no case be made until the later of (i) the end of any revocation period (assuming that Employee does not revoke), or (ii) the first business day of the second calendar year (regardless of whether Employee used the full time period allowed for consideration), all as required for purposes of Section 409A of the Code.


(c)	References to termination of employment and similar terms used in this Agreement are intended to refer to “separation from service” within the meaning of Section 409A of the Code to the extent necessary to comply with Section 409A of the Code (applying the default rules contained therein).


(d)	The Company acknowledges that, for purposes of Section 409A of the Code, each and every payment under this Agreement shall, to the extent permitted by Section 409A of the Code, be deemed a separate payment and not a series of payments.

(e)

To the extent that the reimbursement of any cost or expense or the provision of any in-kind benefits to or for the benefit of Employee is subject to Section 409A of the Code, the amount of such cost or expense eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect the amount of such cost or expense eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, reimbursement of any such cost or expense shall be made by no later than December 31 of the year following the calendar year in which such cost or expense is incurred, and Employee’s right to receive such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

XXXXXXX TECHNOLOGIES, INC.

Dated: July 29, 2014 By: ______________________________

Name: Xxxx X. XxXxxxxxxx

Title: Chairman & CEO

Dated: July 29, 2014 By: _______________________________

Name: D. Xxxxxx Xxxxxx

EXHIBIT A

Employee’s Name = D. Xxxxxx Xxxxxx

Employee’s Title = Senior V.P. Worldwide Sales and Field Operations

Manager = Chief Executive Officer

Base Salary (2014) = $309,000

Severance Period = twelve (12) months

Change In Control

Severance Period = eighteen (18) months

Exempted Inventions = 1. Book titled: Sales 101: How to sell to the recurring customer

Initials of approval of Exhibit: XXXXXXX TECHNOLOGIES, INC. PFM

EMPLOYEE DMB

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RESTATED AND AMENDED EMPLOYMENT AGREEMENT

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