<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
=======================
FORM 10-Q
(Mark one)
[ x ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended June 30, 1997.
OR
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ________ to ________.
Commission File Number: 0-26026
---------------
INTERACTIVE GROUP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 95-2925769
-------- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
5095 MURPHY CANYON ROAD, SAN DIEGO, CA 92123
-------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (619) 560-8525
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
(1) Yes X No (2) Yes X No
----- ----- ----- -----
The number of shares outstanding of the Registrant's Common Stock, $.001 par
value, as of August 12, 1997 was 4,596,995.
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
INTERACTIVE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1997 1996
------- -------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,697 $ 3,682
Accounts receivable, net 17,110 16,064
Deferred income taxes 540 540
Prepaid expenses and other current assets 1,529 1,561
------- -------
Total current assets 22,876 21,847
Property and equipment, net 3,133 3,063
Intangible assets, net 2,286 2,353
Deferred income taxes 1,152 1,134
Deposits and other assets 768 579
------- -------
Total assets $30,215 $28,976
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable $ 5,361 $ 6,770
Accrued salaries and commissions 2,341 2,086
Value added taxes payable 321 682
Other accrued expenses 2,528 2,766
Current portion of obligations under capital leases 221 172
Short-term borrowings and current portion of long-term obligations 3,949 2,013
Customer deposits 354 448
Deferred revenue 2,071 1,888
------- -------
Total current liabilities 17,146 16,825
Obligations under capital leases, less current portion 329 170
Long-term obligations, less current portion 1,630 1,694
Stockholders' equity:
Preferred stock, $.001 par value:
Authorized shares - 5,000,000
None issued and outstanding -- --
Common stock, $.001 par value:
Authorized shares - 30,000,000
Issued and outstanding shares - 4,593,745 and 4,485,712
shares at June 30, 1997 and December 31, 1996, respectively 5 4
Additional capital 7,506 7,019
Retained earnings 3,494 3,127
Cumulative foreign currency translation adjustments 105 137
------- -------
Total stockholders' equity 11,110 10,287
------- -------
Total liabilities and stockholders' equity $30,215 $28,976
======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
2
<PAGE> 3
INTERACTIVE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- ---------------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues $ 15,252 $ 13,761 $ 28,442 $ 27,592
Cost of revenues 7,109 6,899 13,553 13,935
-------- -------- -------- --------
Gross margin 8,143 6,862 14,889 13,657
Operating expenses:
Research and development 891 1,117 1,712 2,053
Selling, general and administrative 6,437 4,951 12,404 10,027
-------- -------- -------- --------
Total 7,328 6,068 14,116 12,080
Income from operations 815 794 773 1,577
Other income (expense), net (78) (39) (143) (72)
-------- -------- -------- --------
Income before income taxes 737 755 630 1,505
Provision for income taxes 300 302 263 610
-------- -------- -------- --------
Net income $ 437 $ 453 $ 367 $ 895
======== ======== ======== ========
Net income per common and
common share equivalents outstanding $ 0.10 $ 0.10 $ 0.08 $ 0.20
======== ======== ======== ========
Weighted average number of common and
common share equivalents outstanding 4,579 4,427 4,554 4,430
======== ======== ======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE> 4
INTERACTIVE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
1997 1996
------- -------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 367 $ 895
Adjustments to reconcile net income to cash (used in)
provided by operating activities:
Depreciation and amortization 847 649
Compensation relating to the granting of options
and stock bonus 46 43
Changes in operating assets and liabilities (2,885) (786)
------- -------
Net cash (used in) provided by operating activities (1,625) 801
INVESTING ACTIVITIES:
Purchase of property and equipment (390) (958)
Acquisition of business -- (264)
------- -------
Net cash used in investing activities (390) (1,222)
FINANCING ACTIVITIES:
Proceeds from short-term borrowings 1,800 --
Principal payments on short-term borrowings -- (340)
Principal payments on long-term obligations (567) (184)
Proceeds from long-term borrowings 500 164
Proceeds from issuance of common stock 442 279
Principal payments on capital leases (113) (213)
------- -------
Net cash provided by (used in) financing activities 2,062 (294)
Effect of exchange rate (32) (177)
------- -------
Net increase (decrease) in cash and cash equivalents 15 (892)
Cash and cash equivalents at beginning of period 3,682 4,467
------- -------
Cash and cash equivalents at end of period $ 3,697 $ 3,575
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest $ 180 $ 138
======= =======
Income taxes $ 8 $ 43
======= =======
Non-cash transactions:
Long-term obligation associated with business acquisitions $ 139 $ 193
======= =======
Property and equipment acquired under capital lease obligations $ 321 $ -
======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE> 5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of
Interactive Group, Inc. (hereinafter referred to as the "Company") have been
prepared in accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
notes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
only of normal recurring adjustments) considered necessary for a fair
presentation of the financial position and operating results for the interim
periods presented have been included. Operating results for the three and six
month periods ended June 30, 1997 are not necessarily indicative of the results
that may be expected for the year ending December 31, 1997. The unaudited
condensed consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto for the year ended
December 31, 1996 included in the Company's Annual Report on Form 10-K. All
intercompany accounts and transactions have been eliminated in consolidation.
2. CASH EQUIVALENTS
Cash equivalents consist of highly liquid investments with original maturities
of 90 days or less.
3. EARNINGS PER SHARE
Earnings per common share is computed using the weighted average number of
shares of common stock and the dilutive effect, if any, of common stock
equivalents outstanding during all periods presented.
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share ("SFAS 128"),
effective for both interim and annual periods ending after December 15, 1997. At
that time, the Company will be required to change the method currently used to
compute earnings per share and to restate all prior periods. Under the new
requirements for calculating primary earnings per share, the dilutive effect of
stock options will be excluded. The impact of SFAS 128 on the calculations of
primary earnings per share and fully diluted earnings per share for the three
and six months ended June 30, 1997 and 1996 is not expected to be material.
4. SUBSEQUENT EVENTS
On July 31, 1997, the Company entered into a definitive agreement (the "Merger
Agreement") with DataWorks Corporation ("DataWorks"), a supplier of software
solutions for discrete and repetitive manufacturers in the mid-range market,
pursuant to which the Company will become a wholly-owned subsidiary of DataWorks
in a stock-for-stock merger (the "Merger") intended to qualify as a tax-free
reorganization within the meaning of Section 368(a) of the Internal Revenue Code
of 1986, as amended, and accounted for as a pooling-of-interests for financial
reporting purposes. Under the terms of the Merger Agreement, stockholders of the
Company will receive 0.8054 shares of DataWorks common stock for each share of
Company common stock they own at the time the Merger is consummated. In
addition, options and warrants to acquire Company common stock will be converted
as a result of the Merger into equivalent options and warrants for DataWorks
common stock, based upon the exchange ratio. In connection with the execution of
the Merger Agreement, the Company granted DataWorks an option to purchase up to
344,531 shares of Company common stock (approximately 7.5% of the number of
shares currently outstanding), exercisable upon the occurrence of certain events
involving a termination of the Merger Agreement. The Merger is expected to be
completed this fall, subject to approval of the Merger Agreement and the Merger
by the stockholders of the Company and the shareholders of DataWorks as well as
the satisfaction or waiver of customary closing conditions. In connection with
the execution of the Merger Agreement, certain stockholders of the Company
owning approximately 39% of the outstanding shares of Company common stock
(Robert C. Vernon, Mark Hellinger and Randolph S. Naylor) and certain
shareholders of DataWorks
5
<PAGE> 6
owning approximately 20% of the outstanding shares of DataWorks common stock
have entered into forms of Voting Agreements pursuant to which they have agreed
to vote their shares in favor of approval of the Merger Agreement and the
Merger. The Company has filed a Current Report on Form 8-K (date of Report: July
31, 1997) with respect to the transactions involving the Company and DataWorks,
and the foregoing description of such transactions and the various agreements
entered into in connection therewith is qualified in its entirety by reference
to the documents filed as exhibits to such Form 8-K.
On July 25, 1997, the Company acquired substantially all of the outstanding
shares of Genie Productique/Gestion de Production ("GP2"), a small provider of
ERP software solutions to the manufacturing mid-market in France, in exchange
for approximately $400,000 plus an additional $160,000 contingent consideration
payable over three years based on a percentage of future revenues generated
primarily from GP2's installed base of customers. The transaction will be
accounted for as a purchase, and the results of operations of GP2 will be
included with the results of the Company's operations subsequent to the date of
acquisition.
6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This Quarterly Report on Form 10-Q for the three and six months ended June 30,
1997 contains forward-looking statements that involve risks and uncertainties.
The Company's actual future results could differ materially from those
statements. Factors that could cause or contribute to such differences include,
but are not limited to, the potential for significant fluctuations in the
Company's quarterly results, management of growth, timing and amounts of future
revenues and risks associated with the integration of the operations and product
offerings of Just-In-Time Enterprise Systems, Inc. and other European operations
into the Company's operations and product offerings, as well as the other
factors discussed elsewhere in this quarterly report on Form 10-Q and in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996. In
addition, the discussion below does not take into account any effects on the
Company of the proposed merger transaction with DataWorks Corporation described
in Note 4 to the Condensed Consolidated Financial Statements contained in this
quarterly report on Form 10-Q.
OVERVIEW
The Company develops, markets, implements and supports integrated business
information systems that enable discrete manufacturers to manage their
enterprise-wide information requirements. The Company primarily sells and
implements its business information systems directly. Since 1992, the Company
has expanded its sales, implementation and customer service capabilities through
the addition of offices as well as the establishment of centralized customer
service centers in both the United States and United Kingdom. Substantially all
of the Company's revenues are generated from the sale of its systems, which
usually consist of proprietary and third-party software licenses, implementation
and software support services, third-party hardware and maintenance contracts.
The Company's proprietary software licenses are sold on a packaged or individual
module basis, and the license fee is determined in part by the number of modules
and concurrent system users. Implementation and software support services are
furnished on a daily or hourly basis and billed monthly as incurred. Maintenance
fees are based on a percentage of software license fees.
Revenues from software licenses are recognized upon delivery, provided that no
significant obligations of the Company remain and collection of the related
receivable is deemed probable. Software support services revenues are recognized
in the period in which the services are performed. Revenues from third-party
hardware sales are recognized upon shipment of the product. Revenues from
software maintenance contracts are recognized ratably over the period of the
contract. Revenues from turnkey systems, which include both hardware and
software, are recognized upon delivery of the software and related hardware that
is considered essential to the functionality of the system, provided that no
significant obligations remain and collection of the related receivable is
deemed probable.
The Company derives a significant portion of its revenues from its international
business, which is subject to various risks common to international activities,
including currency fluctuations. Revenues and expenses of the Company's
international operations are translated at the average exchange rate in effect
during the period. Translation adjustments are reported as a separate component
of stockholders' equity.
Any future growth of the Company will depend on, among other things, the
Company's ability to gain market acceptance for its products in new geographic
areas and its ability to monitor and control the additional costs and expenses
associated with expansion and new product development. There can be no assurance
that the Company will be able to successfully manage these aspects of its
business. The success of the Company's expansion in continental Europe and other
international markets will depend largely upon the Company's ability to acquire
direct interests in strategic software companies as well as the success of the
Company's "affiliates", or business partner program. Acquisitions involve
numerous risks, including difficulties in the assimilation of the operations and
personnel of the acquired business, the integration of management information
and accounting systems of the acquired business, the diversion of management's
attention from other business concerns, risks of entering markets in which the
Company has no direct prior experience, and the potential loss of key employees
of the acquired business. The affiliate program is dependent upon the successful
identification and recruitment of appropriate international partners, the
Company's success in instilling a service-driven culture in these foreign
organizations that the Company does not own or control, and the development of
adequate resources within each affiliate to successfully sell and implement the
Company's business information systems on a turnkey basis. No assurance can be
given that the Company will be able to meet these challenges or successfully
acquire direct interests in foreign companies or implement its international
business partner program.
7
<PAGE> 8
On December 31, 1995, the Company acquired all of the outstanding shares of
Just-In-Time Enterprise Systems ("JIT"), which, prior to the acquisition,
developed and marketed the company's JIT Enterprise System application software
product. Interactive and JIT differ in certain respects, and the Company
anticipates that the integration of JIT will continue to divert some of its
management resources and working capital for an indefinite period of time. There
can be no assurance that difficulties will not arise in integrating the
operations of JIT. Moreover, there can be no assurance that the Company will
realize any product enhancements or increased revenues as a result of the
acquisition of JIT. The success of the acquisition of JIT will depend, in large
part, on the ability of the Company to retain the customers and employees of
JIT, to continue to develop and release product enhancements and new product
releases of the JIT product, and to successfully market and sell such new
product releases. There can be no assurance that the Company will be successful
in this regard. The failure to accomplish any of the goals of the acquisition,
or the failure to successfully integrate the operations of JIT, could have a
material adverse effect on the Company's future operating results and working
capital.
RESULTS OF OPERATIONS
Revenues- Total revenues increased 11 percent to $15.3 million from $13.8
million and increased 3 percent to $28.4 million from $27.6 million for the
three and six months ended June 30, 1997, respectively, as compared to the same
periods in 1996. The increase in revenues was primarily a result of higher sales
volumes in all areas except for third-party hardware sales which the Company has
continued to de-emphasize. Accordingly, revenues from third-party hardware sales
dropped 27 percent or $481,000 and 39 percent or $1.5 million for the three and
six months ended June 30, 1997, respectively, as compared to the same periods in
1996. The increase in revenues for the six months ended June 30, 1997 compared
to the same period in 1996 was partially offset by a decrease in revenues for
the three months ended March 31, 1997 compared to the same period in 1996 as a
result of higher revenues than originally expected in the first quarter of 1996
due to delays in shipment of systems booked in the fourth quarter of 1995.
Revenues from international operations remained consistent at 30 percent and 29
percent of the Company's total revenues for the three and six months ended June
30, 1997, respectively, compared to the same periods in 1996.
Cost of Revenues- Total cost of revenues increased 3 percent to $7.1 million
from $6.9 million and decreased 3 percent to $13.6 million from $13.9 million
for the three and six months ended June 30, 1997, respectively, compared to the
same periods in 1996. The fluctuations in the cost of revenues were primarily
attributable to a reduction in third-party hardware costs as discussed above. In
addition, during the three and six months ended June 30, 1997, the Company
experienced higher personnel costs related to its growth in software support
services and maintenance contracts. As a result, the reduction in hardware costs
were more than offset by the increase in personnel costs for the three months
ended June 30, 1997 while the reduction in hardware costs were only partially
offset by the increase in personnel costs for the six months ended June 30, 1997
as compared to the same periods in 1996.
Gross Margin- Gross margin increased by 19 percent to $8.1 million from $6.9
million and 9 percent to $14.9 million from $13.7 million for the three and six
months ended June 30, 1997, respectively, compared to the same periods in 1996.
As a percentage of total revenues, gross margin increased 3 basis points for the
three and six months ended June 30, 1997 to 53 percent and 52 percent,
respectively, compared to the same periods in 1996. The increase resulted
primarily from the Company's emphasis on selling software licenses and services
versus third-party hardware. Software licenses historically have produced gross
margins approximately 80 percent of revenues while hardware sales historically
have produced gross margins approximately 28 percent of revenues. In addition,
an increase in the volume of maintenance contracts from the Company's growing
customer base contributed to the higher gross margins while the Company
maintained consistent gross margins of 57 percent of related revenues.
Research and Development Expenses- Research and development expenses, which
consist largely of software development costs, decreased 20 percent to $0.9
million from $1.1 million and 17 percent to $1.7 million from $2.1 million for
the three and six months ended June 30, 1997, respectively, compared to the same
periods in 1996. The decreases were primarily a result of the termination of
contractors associated with JIT's research and development expenditures during
the first part of 1997.
8
<PAGE> 9
Selling, General and Administrative Expenses- Selling, general and
administrative expenses increased 30 percent to $6.4 million from $5.0 million
and 24 percent to $12.4 million from $10.0 million for the three and six months
ended June 30, 1997, respectively, compared to the same periods in 1996. As a
percentage of total revenues, selling, general and administrative expenses
increased to 42 percent and 44 percent for the three and six months ended June
30, 1997 compared to 36 percent for the same periods in 1996. The increase in
selling, general and administrative expenses was primarily attributable to the
Company's continued expansion into Europe, which included the business
development and infrastructure costs for Interactive France, Nordic, Ireland and
the Netherlands, the expenses associated with developing and supporting the
Evosoft distributorship for Germany and Hungary, and the translation and
localization of its software for international markets. The Company anticipates
that these costs will continue to increase in absolute dollars in future periods
as the Company attempts to continue its growth.
Provision for Income Taxes- The Company's estimated effective tax rate remained
consistent at around 41 percent for the three and six months ended June 30, 1997
and 1996 which approximates federal and state statutory rates.
QUARTERLY RESULTS; SEASONALITY
The Company has experienced and expects to continue to experience significant
fluctuations in its quarterly results. Such fluctuations may be caused by many
factors, including, but not limited to: the size and timing of individual
orders; seasonality of revenues; lengthy sales cycles; delays in introduction of
products or product enhancements by the Company or other providers of hardware,
software and components for the Company's systems; competition and pricing in
the software industry; market acceptance of new products; reduction in demand
for existing products and shortening of product life cycles as a result of new
product introductions by competitors; foreign currency exchange rates; mix of
products sold; customer order deferrals in anticipation of new products; changes
in customer budgets; changes in Company strategy; personnel changes; changes in
operating expenses; conditions or events in the manufacturing industry; and
general economic conditions.
The Company's expense levels are based in part on its forecasts of future
revenues. Accordingly, since the majority of the Company's expenses are fixed in
nature, the Company would not be able to quickly curtail expenses in response to
a decline in revenues, and operating results and working capital for a given
quarter could be adversely affected. As a result, revenues for any quarter are
subject to significant variation and the Company believes that period-to-period
comparisons of its results of operations are not necessarily meaningful and
should not be relied upon as indications of future performance. Fluctuations in
quarterly operating results may also result in volatility in the market price of
the Company's common stock.
The Company's revenues have typically occurred to a greater degree in the third
month of each fiscal quarter, and tend to be concentrated in the latter half of
such third month. As a result, the Company's quarterly results are difficult to
predict, and delays in hardware delivery or contract signings near the end of a
quarter could cause quarterly revenues and, to a greater degree net income, to
be significantly less than anticipated. The procurement process of the Company's
customers is long and involves competing capital budget decisions. As a result
of such budgeting and buying patterns, the Company's prospective customers are
typically more likely to order the Company's products near the end of each year.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1997, the Company had cash and cash equivalents totaling $3.7
million and working capital of $5.7 million, compared to cash and cash
equivalents of $3.7 million and working capital of $5.0 million as of December
31, 1996. The Company has lines of credit with commercial banks under which it
may borrow up to a total of $4.8 million secured by substantially all the assets
of the Company and expires July 15, 1998. As of June 30, 1997, $3.0 million was
outstanding under these lines. The Company currently invests its excess cash in
money market accounts.
9
<PAGE> 10
The Company believes that its existing cash and cash equivalents together with
its available lines of credit and cash flow from operations will be sufficient
to meet its anticipated working capital requirements for at least the next
twelve months.
10
<PAGE> 11
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Stockholders of the Company (the "Annual
Meeting") was held on June 3, 1997 in San Diego, California.
Proposal 1 - Election of Directors
Each of the candidates listed below were duly elected to the Board of
Directors at the Annual Meeting by the tally indicated.
<TABLE>
<CAPTION>
Candidate Votes in Favor Votes Withheld
--------- -------------- --------------
<S> <C> <C>
Robert C. Vernon 3,903,232 16,237
Mark Hellinger 3,890,232 29,237
Randolph S. Naylor 3,891,232 28,237
Lyndol L. Cook 3,903,259 16,210
</TABLE>
Proposal 2 - Approval of Employee Stock Purchase Plan, as amended
<TABLE>
<CAPTION>
Votes in Favor Votes Against Votes Abstained Non-Votes
-------------- ------------- --------------- ---------
<S> <C> <C> <C>
3,483,689 48,130 387,650 -
</TABLE>
Proposal 3 - Ratification of Selection of Independent Auditors
<TABLE>
<CAPTION>
Votes in Favor Votes Against Votes Abstained Non-Votes
-------------- ------------- --------------- ---------
<S> <C> <C> <C>
3,907,855 4,200 7,414 -
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
2.1 Agreement for Sale and Purchase of Stock between the
Company and Genie Productique/Gestion de Production and
Sodriv dated July 25, 1997
10.1 Line of Credit Agreement between the Company and Sanwa Bank
California dated June 30, 1997
10.2 The Company's 1995 Stock Option Plan, as amended on June 3,
1997
10.3 The Company's Employee Stock Purchase Plan, as amended on
June 3, 1997
10.4 The Company's 1997 Nonstatutory Stock Option Plan (Filed as
an exhibit to the Company's registration statement on form
S-8 (No. 333-30259) and incorporated herein by reference.)
11.1 Statement of Computation of Earnings Per Share
27.1 Financial Data Schedule
(b) Reports on Form 8-K:
None
11
<PAGE> 12
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTERACTIVE GROUP, INC.
-----------------------
(Registrant)
Dated: August 12, 1997 /s/ MARK HELLINGER
----------------------------------
MARK HELLINGER
President, Chief Operating Officer
and Director (Acting Principal
Financial and Accounting Officer)
12
<PAGE> 1
EXHIBIT 2.1
AGREEMENT FOR SALE AND PURCHASE OF STOCK
THIS AGREEMENT FOR SALE AND PURCHASE OF STOCK (the "Agreement") is made
between, on the one hand, those individuals identified below in subparagraph
1.a. as "Shareholders" ("Sellers"), and, on the other hand, INTERACTIVE GROUP,
INC., a Delaware corporation ("Buyer"), who agree as follows:
1. FACT RECITALS.
This Agreement is made with reference to the following facts:
a. Shares.
Sellers own and shall own at the Close (as defined in Section
7) 10,999 shares of GENIE PRODUCTIQUE/GESTION DE PRODUCTION ("GP2") and all of
the shares of SODRIV (such shares of GP2 and SODRIV being collectively referred
to as the [Shares]), as follows:
<TABLE>
<CAPTION>
NO. OF NO. OF
GP2 SODRIV
SHAREHOLDERS SHARES SHARES
- ------------ ------ ------
<S> <C> <C>
Michel Vincent 7,121 150
Christian Depinoy 831 50
Jean-Francois Miletto 700
Francoise Vincent 700
Jean-Marie Fey 550 50
Laurent Masson 530
Eric Andre 500
Lionel Fleury 67
Andre Vincent 250
TOTAL : 10,999 500
</TABLE>
GP2 and SODRIV, both French companies, are hereinafter sometimes referred to
individually as a "Company" and collectively as "Companies".
The remaining share of GP2 is owned by Mr. Daniel Castaner.
2. Intent of the Parties.
It is the intent of the parties that Sellers sell the Shares to
Buyer and that Buyer purchase the Shares from Sellers pursuant to the provisions
and conditions of this Agreement.
1
<PAGE> 2
3. PURCHASE AND SALE OF SHARES.
Sellers hereby agree to sell to Buyer and Buyer hereby agrees to
purchase from Sellers the Shares according to the provisions and conditions of
this Agreement.
a. Transfer of Shares.
At the Close, Sellers shall deliver to Buyer duly executed
share transfer instruments (ordres de mouvement and actes de cession de parts)
covering the Shares to complete the transfer of the Shares to Buyer.
b. Purchase Price.
The purchase price for the Shares shall be on an earnout
basis on the following provisions and conditions:
(1) Subject to Sellers' indemnity obligations set forth in
subparagraph c. of the numbered paragraph of this Agreement entitled "SELLERS'
OBLIGATIONS AFTER CLOSING," the minimum purchase price shall be Two Million Five
Hundred Thousand French Francs (2,500,000f) and the maximum purchase price shall
be Three Million Five Hundred Thousand French Francs (3,500,000f), including the
purchase price of the 500 SODRIV shares which shall be FRF 50,000 in the
aggregate.
(2) The earnout will be calculated in accordance with the
sample earnout attached hereto, marked Schedule "3-b(2)" and incorporated herein
by this reference; subject to the limitations set forth in subparagraph (1)
above, the actual earnout will be based on actual revenues earned by the
Companies in each of the respective revenue categories shown on Schedule
"3-(b)2."
(3) The earnout term will be three (3) years from the date
of this Agreement.
(4) The earnout payments will be calculated and paid
quarterly by Buyer based on receipt of customer payment (exclusive of VAT) for
qualified invoiced revenue on which the gross margins and related earnout are
calculated which will be no later than forty-five (45) days following the end of
the respective quarter.
(5) The quarterly payments will be paid directly to Sellers
in proportion to their respective shareholdings in GP2 and SODRIV, provided
however that no payment shall be made to Sellers for their GP2 shares until
after the FRF 50,000 purchase price for the SODRIV shares have been paid in
full. All payments shall be made by checks to the order of the appropriate
Sellers, or by wire transfer to such bank accounts as may be indicated by
Sellers.
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6) Earnout revenue shall also include any revenue booked
and received within ninety (90) days after the end of the three (3) year earnout
term.
(7) For purposes of earnout calculations, software license
revenue margins on Buyer's software (INFOFLO and JIT) will be assumed at
seventy-five percent (75%); for GPIC and Ordobox, one hundred percent (100%)
less any direct costs of goods.
(8) Recognition of JIT revenue will apply to pre-existing
GP2 customers only.
(9) Margins on hardware and third party software license
revenue will be net margins earned (sales revenue less direct cost of sales).
(10) Margins on services and maintenance revenue will be
assumed at one hundred percent (100%) (i.e. earnout percentage will be applied
to actual qualified revenue earned).
(11) If, during the earnout period, a total of Three
Million Five Hundred Thousand French Francs (3,500,000f) is paid, the earnout
payments will cease. If, at the end of the earnout period, a minimum of Two
Million Five Hundred Thousand French Francs (2,500,000f) has not then been paid,
the balance of the minimum purchase price will thereupon be paid.
In the event of a dispute between the parties as to the
amount of the purchase price calculated as set forth in Schedule 3-b(2) and this
subparagraph 3.b, the purchase price shall be finally determined by an
independent certified public accountant appointed by mutual agreement of the
parties or, if the parties are unable to agree, by the presiding judge of the
Commercial Court of Paris at the request of the most diligent party.
4. SELLERS' REPRESENTATIONS AND WARRANTIES.
Sellers, and each of them, jointly and severally represent and
warrant that, as of the date of this Agreement:
a. GP2 is a Societe Anonyme and SODRIV is a Societe a
Responsabilite Limitee both duly organized, validly existing, and in good
standing under the laws of the Country of France, each has all necessary
corporate powers to own its properties and to carry on its business, and neither
the ownership of the properties nor the nature of its business requires either
Company to be qualified in any jurisdiction other than the country of its
incorporation, and, in fact, neither Company is so qualified in any other
country.
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b. All of the issued and outstanding Shares are validly
issued, fully paid, and nonassessable. There are no outstanding subscriptions,
options, rights, warrants, convertible securities, investment certificates
(certificats d'investissment) or other agreements or commitments obligating
either Company to issue or to reissue any additional shares of either Company's
capital stock. Upon the consummation of the transaction contemplated in this
Agreement, Buyer shall have sole and absolute control over one hundred percent
(100%) of all issued and outstanding shares of both Companies and no other
person, entity or association will have any right to acquire any shares of
either Company. In addition, each Company and Sellers have complied with all
applicable securities laws in connection with the initial issuance and
subsequent transfers of all shares of each Company's stock.
c. All of the Shares are free and clear of all liens,
encumbrances, security agreements, equities, options, claims, charges, and
restrictions. Sellers each have full right, power and authority to transfer the
Shares to Buyer without obtaining the consent or approval of any other person or
governmental authority, except for such consents or approvals, including
approvals by the Board of Directors of GP2 and the shareholders' meeting of
SODRIV, as Sellers have obtained and delivered to Buyer prior to the execution
of this Agreement.
d. Neither Company owns, directly or indirectly, any interest
or investment, whether equity or debt, in any corporation, partnership,
business, trust or other entity, except as otherwise set forth on Schedule
"4-d."
e. Sellers have supplied to Buyer with balance sheets of each
Company and the related statements of income and expenses dated as of June 30,
1997, copies of which are attached hereto, marked Schedule "4-e" and
incorporated herein by reference (the "Financial Statements"). The Financial
Statements are interim reports, have been prepared in accordance with internal
accounting policies and procedures, consistently followed by each Company, and
fairly present the financial position of each Company as of June 30, 1997, and
the results of each Company's operations for the respective periods indicated.
Except as otherwise set forth in Schedule "4-e-1," since the date of the
Financial Statements there has not been any:
(1) Transaction by either Company except in the ordinary
course of business as conducted on that date;
(2) Capital expenditure by either Company exceeding Fifty
Thousand French Francs (50,000f);
(3) Material adverse change in the financial condition,
liabilities, assets, business, or prospects of either Company;
(4) Destruction, damage to, or loss of any asset of either
Company, whether or not covered by insurance, that materially and adversely
affects the financial condition, business, or prospects of either Company;
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(5) Labor trouble or other event or condition of any
character that has or might reasonably have a material and adverse effect on the
financial condition, business, assets, or prospects of either Company;
(6) Change in either Company's accounting methods or
practices, including, but not limited to, change in depreciating or amortization
policies or rates;
(7) Revaluation by either Company or any of its assets;
(8) Declaration, setting aside, or payment of a dividend or
other distribution in respect to the capital stock of either Company, or any
direct or indirect redemption, purchase, or other acquisition by either Company
of any of its shares of capital stock;
(9) Increase in the salary or other compensation payable or
to become payable by either Company to any of its officers, directors, or
employees, or the declaration, payment, commitment or obligation of any kind for
the payment, by either Company, of a bonus or other additional salary or
compensation to any such person;
(10) Sale or transfer of any asset of either Company,
except in the ordinary course of business;
(11) Amendment or termination of any contract, agreement,
or license to which either Company is a party, except in the ordinary course of
business;
(12) Loan by either Company to any person, entity or
association, or guaranty by either Company of any loan;
(13) Mortgage, pledge, or other encumbrance of any asset of
either Company;
(14) Waiver or release of any right or claim of either
Company, except in the ordinary course of business;
(15) Issuance or sale by either Company of any shares of
its capital stock or of any other security;
(16) Agreement by either Company to do any of the things
described in subparagraphs (1) through (15) above.
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f. Neither Company has any debt, liability, or obligation of
any nature, whether accrued, absolute, contingent, or otherwise, and whether due
or to become due, that is not reflected or reserved against in the Financial
Statements, except for those (1) that may have been incurred after the date of
the Financial Statements and (2) that are not required by generally accepted
accounting principles to be included in a balance sheet, and except as may be
set forth on Schedule "4-f." All debts, liabilities, or obligations incurred
after the date of the Financial Statements were incurred in the ordinary course
of each Company's business, and are usual and normal in amount, both
individually and in the aggregate.
g. Within the times and in the manner prescribed by law, each
Company has filed all national and local tax and social security and related
returns required by law and has paid all taxes, social security and related
contributions, assessments, and penalties due and payable. The provisions for
taxes and social security reflected in each Company's Financial Statements, are
adequate for any and all national and local taxes and social security for the
period ending on the date of those Financial Statements and for all prior
periods, whether or not disputed. There are no present disputes as to taxes or
social security of any nature payable by either Company. In the event of any
audit concerning any tax return filed on or before the Close (as hereinafter
defined), Sellers shall cooperate fully with Buyer and the taxing authority in
obtaining and presenting any required information.
h. The Financial Statements state an accurate account
receivable balance, liabilities, and bank account balance of each Company as of
the date of the Financial Statements. The accounts receivable arose from valid
sales in the ordinary course of each Company's business. One hundred percent
(100%) of the accounts receivable as set forth on the Financial Statements, as
shall be updated to the Close, shall be paid within six (6) months after the
Close. In the event that any of those accounts receivable are not paid in full
within that six (6) month period, Sellers shall pay to Buyer (or Buyer may
deduct from payments due to Sellers under subparagraph 3.b of this Agreement)
the face amount of the unpaid accounts receivable, in excess of the bad debt
reserve as set forth on the Financial Statements, and Buyer shall assign those
accounts receivable to Sellers for Sellers' collection at Sellers' sole cost and
expense.
i. Each Company has good and marketable title to all of its
assets and interest in its assets, whether real, personal, mixed, tangible or
intangible, which constitute all the assets and interest in assets that are used
in each Company's business. All the assets and interests in assets are free and
clear of restrictions on or conditions to transfer or assignment, and are free
and clear of mortgages, liens, pledges, charges, encumbrances, equities, claims,
easements, rights of way, covenants, conditions, or restrictions, except for (1)
those disclosed in the Financial Statements, (2) the lien of current taxes not
yet due and payable, and (3) except as otherwise set forth on Schedule "4-i,"
attached hereto and incorporated herein by reference. All of each Company's
tangible personal property is in good operating condition and repair, ordinary
wear and tear excepted. Each Company is in possession of all premises leased to
it from others. Neither Sellers, nor any officer, director, or employee of
either Company, nor any spouse, child, or other relative of any of these
persons, owns, or has any interest, directly or indirectly, in any of the real
or personal property owned by or leased to either Company or any copyrights,
patents,
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trademarks, trade names, or trade secrets licensed by either Company.
Neither Company occupies any real property in violation of any law, regulation,
or decree.
j. Except for interests in publicly traded stock, which
interests represent less than one percent (1%) of such corporations' currently
issued and outstanding stock, neither Sellers, nor any officer, director, or, to
the best of Sellers' knowledge, employee of either Company, nor any spouse or
child of any of them (as to spouse or child of employee, to the best of Sellers'
knowledge), has any direct or indirect interest in any competitor, supplier, or
customer of either Company or in any person from whom or to whom either Company
leases any real or personal property, or in any other person with whom either
Company is doing business.
k. Each Company has developed or otherwise owns certain
software as listed on Schedule "4-k," attached hereto and incorporated herein by
reference (the "Software").
(1) Each Company is the absolute owner of the Software with
full power and the only other person, entity or association who has any rights
in or to the Software are as set forth on Schedule "4-k(1)" attached hereto and
incorporated herein by this reference.
(2) Each Company has good, marketable and unencumbered
title to its Software.
(3) Company and the parties identified on Schedule
"4-k(3)," attached hereto and incorporated herein by this reference, have all
known copies of the source code(s) currently in existence for the Software and,
upon the Close, will transfer and deliver to Buyer a complete copy of the
current source code, including any operator or user manuals, training materials,
selling materials, specifications or any other document which describes or
relates to the design, development, operation, use, marketing, leasing,
licensing or sale of the Software.
(4) To the best of Seller's knowledge and belief, other
than errors or "bugs" of a type normally generated in the course of the
development and modification of software, the Software is free from programming
errors which materially interfere with, affect or impair the operation or use of
the Software.
(5) No notification has been received from any user,
dealer, customer, supplier or licensee of the Software and Products which
indicates the existence of any fact or circumstance which contradicts the
representations and warranties set forth in this subparagraph k.
(6) Schedule "4-k(6) sets forth the identity of all parties
who have, or who have had, a license in the Software; Sellers hereby represent
that they have provided Buyer with copies of all said licenses for its review.
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l. Schedule "4-l," attached hereto and incorporated herein by
reference, contains a description of all insurance policies held by each Company
concerning its business and properties. All of these policies are in the
respective principal amounts as set forth in Schedule "4-l," which principal
amounts cover, at minimum, the replacement value of the assets covered by the
insurance policies. Each Company has maintained and now maintains insurance on
all of its assets and operations of a type customarily insured, covering
property damage or other casualty, and a commercially reasonable amount of
insurance protecting against general public and product liability, and all other
liabilities, claims, and risks against which it is customary to insure.
m. Except as otherwise set forth on Schedule "4-m," neither
Company is a party to any distributor's or manufacturer's representative or
agency agreement, any output or requirements agreement, any agreement not
entered into in the ordinary course of business, any indenture, mortgage, deed
of trust, lease or any agreement that is unusual in nature, duration, or amount,
including, but not limited to, any agreement requiring performance by either
Company of any obligation for a period of time extending beyond one (1) year
after the Close. Neither Company has received notice that any party to any
agreement to which either Company is a party intends to cancel or terminate any
such agreement or to exercise or to not exercise any options of any such
agreement. There is no default or an event that with notice or lapse of time, or
both, would constitute a default by any party to any of these agreements. To the
best of Sellers' knowledge and belief, neither Company is a party to any
agreement that is materially adverse to the business, property, or financial
condition of either Company.
n. Each Company has complied with, and is not in violation of,
any applicable national or local statute, law, and/or regulation, including, but
not limited to, any applicable building, zoning, or other law, ordinance, or
regulation affecting each Company's properties or the operation of each
Company's business.
o. Schedule "4-o," attached hereto and incorporated herein by
reference, sets forth a complete and accurate legal description of each parcel
of real property leased by each Company. Neither Company owns real property nor
interest in real property. Except for leasehold interests set forth on Schedule
"4-o," neither Company leases any other real property. Schedule "4-o" also
contains a description of all buildings, fixtures, and other improvements
located on these real properties. All the leases listed in Schedule "4-o" are
valid and in full force, and there does not exist any default or event that with
notice or lapse of time, or both, would constitute a default under any of these
leases.
p. The zoning of each parcel of property described in Schedule
"4-o" permits the presently existing improvements and the continuation of the
business presently being conducted on such parcel.
q. Except as set forth on Schedule "4-q," attached hereto and
incorporated herein by reference, all trucks, automobiles, machinery, equipment,
furniture, supplies, tools, dies, jigs, molds, patterns, drawings, and all other
tangible personal property owned by, in the
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<PAGE> 9
possession of, or used by either Company in connection with its business is
located on or at the real property identified on Schedule "4-o."
r. Schedule "4-r," attached hereto and incorporated herein by
reference, sets forth a schedule of all patents, applications for patents, trade
names, trademarks, service marks, and copyrights, and their registrations, owned
by either Company or in which either Company has any rights or licenses,
together with a brief description of each. Neither Company has infringed, and is
not now infringing, on any patents, trade names, trademarks, service marks, or
copyrights belonging to any other person, firm, or entity. Each Company owns, or
holds adequate licenses or other rights to use, all patents, trade names,
trademarks, service marks, and copyrights necessary for its business as now
conducted, and that such use does not conflict with, infringe on, or otherwise
violate any rights of others. The patents and applications for patents listed on
Schedule "4-r" are valid and in full force and effect and are not subject to any
taxes, maintenance fees, or actions falling due within ninety (90) days after
the Close.
s. Schedule "4-s," attached hereto and incorporated herein by
reference, sets forth a description of all employment contracts, collective
bargaining agreements, pension, bonus, profit-sharing, stock options, or other
agreements providing for employee remuneration or benefits to which either
Company is a party; Sellers hereby represent that they have provided copies of
all said documents to Buyer for its review. All of the foregoing are in full
force and effect, and neither Company, nor any other party, is in default under
them. There have been no claims or defaults and there are no facts or conditions
which have continued which shall result in a default under the foregoing
contracts or arrangements. There is no pending or threatened labor dispute,
strike, or work stoppage affecting either Company's business.
t. The consummation of the transaction contemplated by this
Agreement will not result in or constitute any of the following:
(1) A default or an event that, with notice or lapse of
time, or both, would be a default, breach, or violation of the Articles of
Incorporation or Bylaws of either Company, or any lease, license, promissory
note, conditional sales contract, commitment, indenture, mortgage, deed of
trust, or other agreement, instrument, or arrangement to which either Company is
a party or by which either Company is bound;
(2) An event that would permit any party to terminate any
agreement or to accelerate the maturity of any indebtedness or other obligation
of either Company; or
(3) The creation or imposition of any lien, charge, or
encumbrance on any of the assets of either Company.
u. Schedule "4-u," attached hereto and incorporated herein by
reference, lists the following:
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(1) The names and addresses of all persons holding a power
of attorney on behalf of either Company;
(2) The names, addresses, and account numbers of all banks
and other financial institutions in which either Company has an account,
deposit, or safe deposit box, as well as the names of all persons authorized to
draw on these accounts or deposits or to have access to these boxes; and
(3) The names and addresses of all of the officers and
directors of each Company.
v. Except as set forth in Schedule "4-v," attached hereto and
incorporated herein by reference, there is no, and for the five (5) year period
prior to the date of this Agreement there has been no, suit, action,
arbitration, or legal, administrative, or other proceedings, or governmental
investigation, pending or threatened against or affecting either Company or the
business, assets, or financial condition of either Company; the matters set
forth in Schedule "4-v," if decided adversely to either Company, shall not
result in a material adverse change in the business, assets, or financial
conditions of either Company; Sellers have furnished to Buyer copies of all
relevant court papers and other documents relating to the matters set forth in
Schedule "4-v." Except as set forth in Schedule "4-v," neither Company is in
default with respect to any order, writ, injunction, or decree of any national
or local court, department, agency, or instrumentality; except as set forth in
Schedule "4-v," neither Company is presently engaged in, and for the five (5)
year period prior to the date of this Agreement has not been engaged in, legal
action to recover monies due to it or damages sustained by either Company; there
are no claims or defects in any of the products (Software) or services supplied
or provided by either Company prior to the date of this Agreement or in any of
the products (Software) created by, licensed by or to or purchased by either
Company prior to the date of this Agreement which shall be eventually sold or
licensed after the date of this Agreement and which may result in claims being
made against either Company or for which either Company may become liable for or
responsible for in the course of its business after the date of this Agreement
in excess of those historically experienced by it in the ordinary course of
business.
w. Sellers have the right, power, legal capacity, and
authority to enter into, and perform their respective obligations under this
Agreement, and all approvals or consents of any persons required to consummate
the transaction contemplated in this Agreement have been obtained and copies of
such approvals or consents have been delivered to Buyer.
x. Sellers have furnished to Buyer for Buyer's examination (1)
copies of the Articles of Incorporation and Bylaws of each Company, and all
amendments thereto; (2) the minute book of each Company containing records of
all proceedings, consents, actions, and meetings of the shareholders and Board
of Directors of each Company; (3) all permits, orders, consents issued by any
governmental agency with respect to each Company or any of their securities, and
all applications for such permits, orders, and consents; and (4) the stock
transfer book of each Company setting forth all transfers of its capital stock.
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y. None of the representations and warranties made by Sellers,
or made in any certificate or memorandum or document furnished or to be
furnished by any of them, or on their behalf, contains or will contain any
untrue statement of a material fact, or omit any material fact, the omission of
which would be misleading.
z. Since Sellers first learned of Buyer's interest in
acquiring the Shares, Companies and Sellers have:
(1) Carried on their business and activities diligently and
in substantially the same manner as the business and activities had been carried
out prior to learning of such interest, and neither Company has made nor
instituted any unusual or novel methods of management, accounting, or operation
that would vary materially from the methods used by each Company when Sellers
first learned of Buyer's interest;
(2) Used their respective best efforts to preserve the
relationship between each Company and its suppliers, customers, and others
having a business relationship with each Company;
(3) Not done any of the following acts:
(a) Granted any increase in salaries payable or to
become payable by either Company to any officer, employee, agent, or
representative of either Company, other than such increases as may have been
mandatory under French law;
(b) Increased any benefits payable to any officer,
employee, agent, or representative of either Company under any bonus or pension
plan or other contract or commitment; or
(c) Modified any employment or collective bargaining
agreement to which either Company is a party or by which either Company may be
bound; or
(d) Modified, amended, cancelled, or terminated any of
their existing contracts or agreements, nor has either Company agreed to do any
of those acts.
aa. Sellers further represent and covenant that the
representations and warranties set forth in paragraphs a through z of this
section 4 will be true and accurate in all respects on the Close as if made or
given on the Close.
bb. In addition to the foregoing, M. Michel Vincent acknowledges
that Buyer has been induced to purchase the Shares based on his representation
that he would continue to work for the Companies and shall not resign or retire
from either of the Companies for a period of twenty-four (24) months following
the Close, except for reasons attributable to force majeure or to a condition of
disability preventing him from performing his duties.
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5. BUYER'S REPRESENTATIONS AND WARRANTIES.
Buyer represents and warrants that, as of the date of this
Agreement:
a. Buyer is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware, has all necessary
corporate powers to own its property and to carry on its business. Buyer's stock
is publicly traded and listed on NASDAQ. The execution and delivery of this
Agreement and the consummation of the transaction contemplated herein by Buyer
has been duly authorized, and no further corporate authorization is necessary.
b. The transaction contemplated by this Agreement is in
accordance with all laws governing Buyer.
6. RESIGNATION.
At or before the signing of this Agreement, Sellers shall deliver
to Buyer, in a form acceptable to Buyer and Buyer's attorney, resignations of
all officers and positions on the Board of Directors of each Company, which
resignations shall be effective as of the Close.
7. THE CLOSE.
On July 25, 1997 at 3 PM or at such other date and time as may
be mutually agreed in writing by Sellers and Buyer (the "Close"), the following
shall occur at the offices of Sales Vincent & Associes at 43 Rue du Faubourg
Saint-Honore, 75008 Paris:
a. Sellers shall deliver to Buyer the following:
(1) Duly executed share transfer documents (ordres de
mouvement and actes de cessions de parts) covering the Shares in conformity with
subparagraph a. of the numbered paragraph of this Agreement entitled "PURCHASE
AND SALE OF SHARES." On submission of those ordres de mouvement to GP2, GP2
shall record the transfer in its Stock Transfer Book (registre de mouvements)
and shall issue to Buyer a copy of its Shareholder Account showing the GP2
shares, registered in the name of Buyer, as well as copies of the Shareholders
Accounts of the Sellers showing they no longer have any shares in GP2;
(2) The resignations of the officers and directors of each
Company as set forth in the numbered paragraph of this Agreement entitled
"RESIGNATIONS;"
(3) In the event Sellers, or any of them, are married, the
written consent of Sellers' spouses to the sale of the Shares as contemplated by
this Agreement;
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(4) All necessary agreements and consents in accordance
with subparagraph v. of the numbered paragraph of this Agreement entitled
"SELLERS' REPRESENTATIONS AND WARRANTIES, including Board of Directors' approval
of Buyer as the new shareholder;"
(5) An opinion dated as of the Close, in a form and
substance satisfactory to Buyer and its counsel, from Sellers' counsel that:
(a) Each Company is duly organized and validly existing
and in good standing under the laws of the state of its incorporation, and has
all necessary corporate power to own its properties as now owned and operate its
business as now operated;
(b) All outstanding shares of each Company's stock are
validly issued, fully paid, and nonassessable. To the best of counsel's
knowledge and belief, after examination of appropriate corporate books and
records and other documents in their possession, there are no outstanding
subscriptions, options, rights, warrants, convertible securities, investment
certificates (certificats d'investissement), or other agreements or commitments
obligating either Company to issue or transfer from treasury any additional
shares of its capital stock of any class;
(c) This Agreement has been duly and validly authorized
and, when executed and delivered by Sellers, shall be valid and binding on each
of them and enforceable in accordance with its terms, except as limited by
bankruptcy and insolvency laws and by other laws affecting the rights of
creditors generally;
(d) Sellers are the owners, beneficially and of record,
of all of the issued and outstanding shares of the capital stock of each
Company, and, to the best of counsel's knowledge and belief, after examination
of appropriate corporate books and records and other documents in their
possession, free and clear of all liens, encumbrances, equities, options,
claims, charges, and restrictions, and Sellers have full power to transfer the
Shares to Buyer without obtaining the consent or approval of any other person or
governmental authority;
In rendering their opinion, Sellers' counsel may rely
on certificates of officers and directors of each Company as to factual matters.
(6) The minute book, shareholder account book(s), share
transfer ledgers, and corporate seals of each Company;
(7) A Certificate (Extrait K-bis) dated within fourteen
(14) days of the date of this Agreement issued by the Registry of Commerce and
Companies of Cretcil for each Company;
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(8) A copy of a letter of the statutory auditors of GP2
waiving prior notice for the meeting of shareholders of GP2 to be held on the
Close to acknowledge the resignation of the current directors and to elect new
directors.
(9) The original copies of the powers of attorney granted
by Messrs. Christian Depinoy, Jean-Francois Miletto, Andre Vincent and Mrs.
Francoise Vincent to Mr. Michel Vincent and by Mr. Laurent Masson to Mr.
Jean-Marie Fey, in form acceptable to counsel for Buyer, confirming their
agreement to be bound in all respects by this Agreement and the schedules
thereto and authorizing Mr. Michel Vincent and Mr. Jean-Marie Fey to sign any
and all instruments and documents necessary for the transfer of the Shares at
the Close.
b. Buyer shall deliver to Sellers the following:
An opinion dated as of the Close, in a form and substance
satisfactory to Sellers and its counsel, from Buyer's counsel, Post Kirby Noonan
& Sweat LLP of San Diego, California, that:
(1) Buyer is duly organized and validly existing and in
good standing under the laws of the state of its incorporation, and has all
necessary corporate power to own its property as now owned and operate its
business as now operated;
(2) This Agreement has been duly and validly authorized
and, when executed and delivered by Buyer, shall be valid and binding on Buyer
and enforceable in accordance with its terms, except as limited by bankruptcy
and insolvency laws and by other laws affecting the rights of creditors
generally; and
(3) To the best of counsel's knowledge and belief, after
examination of appropriate corporate books and records and other documents in
its possession, the transaction contemplated by this Agreement is in accordance
with all laws governing Buyer.
In rendering their opinion, Buyer's counsel may rely on
certificates of officers and directors of Buyer as to factual matters.
8. SELLERS' OBLIGATIONS AFTER CLOSING.
a. Covenant Not to Solicit.
Commencing upon the Close and continuing for a period of
five (5) years immediately following the Close, Sellers, and each of them, shall
not, directly or indirectly, under any circumstances whatsoever, solicit
business from or render services to any of the persons, firms, businesses,
partnerships, corporations, unincorporated associations, societies, governmental
bodies, or other entities that have been solicited or rendered services by Buyer
or either Company within the then immediate two (2) year period, nor shall they,
or any of them,
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employ, solicit or otherwise induce any employee of either Company to leave his
or her employment with either Company, or Buyer, or any successor thereto.
b. Trade Secrets.
Except as necessary in connection with any of Sellers'
performance of services for Buyer or either Company, Sellers, and each of them,
shall not at any time, for any reason whatsoever, divulge, communicate, use to
the detriment of Buyer or either Company, or for the benefit of any other person
or persons, or misuse or abuse in any way, any confidential information or trade
secretes of Buyer or either Company, including, but not limited to, personnel
information and customer lists, which trade secrets Sellers acknowledge to be
the property of and owned exclusively by Buyer and/or each Company. This
covenant shall run without limitation as to time.
The purchase price for the Shares set forth above includes
the consideration for Sellers' covenants set forth in subparagraphs a. and b.
above.
c. Indemnity.
Sellers, jointly and severally, for themselves, and on
behalf of their respective spouses, heirs, executors, administrators,
successors, assigns, and each of them, shall indemnify and hold harmless Buyer
and Buyer's successors and assigns from and against any and all claims, demands,
liability, actions, causes of action, costs, expenses, attorneys' fees, and
losses which arise out of, or in any manner relate to, any breach of, or failure
by Sellers, or any of them, to perform any of their respective representations,
warranties, covenants, or agreements as set forth in this Agreement, or in any
schedule, certificate, exhibit, or other instrument furnished or to be furnished
by Sellers to Buyer under this Agreement, or which arise out of, or in any
manner relate to, any of Sellers' representations and warranties as set forth in
this Agreement not proving to be true and correct, or which arise out of or
relate to the period of time prior to the Close and was not otherwise disclosed
to Buyer. Buyer may offset amounts due hereunder against amounts otherwise due
to Sellers upon written notice to Sellers; provided, however, in all events,
Sellers' liability under this subparagraph c. shall not exceed amounts paid or
payable to Sellers hereunder. Notwithstanding the foregoing, with respect to
such loss or liability which will give rise to indemnification: (i) the loss or
liability shall be reduced by any insurance proceeds received by Buyer or the
Companies with respect to the foregoing; (ii) the loss or liability shall be
reduced by the value of any net tax benefit or tax savings realized by the
Companies as a result of or related to the foregoing; and (iii) a tax
reassessment which would lead to a transfer of taxable profit from one fiscal
year to another would be considered as an indemnifiable loss only for the actual
loss suffered by the Companies which may result in penalties imposed by the Tax
Administration. In addition, no indemnifiable loss will give rise to
indemnification unless and until the aggregate amount thereof exceeds FRF
50,000.
15
<PAGE> 16
Notwithstanding the foregoing and the disclosures made by Sellers
pursuant to Section 4.v. of this Agreement, Sellers shall indemnify and hold
harmless Buyer and Buyer's successors and assigns from and against any and all
claims, demands, liability, actions, causes of action, costs, expenses,
attorneys' fees, and losses which arise out of, or in any manner relate to (i)
the tax audit referred to in Schedule [4.v.], subject only to the deductible of
FRF 50,000 referred to in the preceding paragraph and (ii) the Droguet
litigation referred to in said Schedule [4.v.]., subject only in the latter case
to a deductible of FRF 200,000 and to a cap of FRF 1,000,000, provided further
that the total amounts payable by Sellers to Buyer pursuant to this Section
shall be limited to the aggregate amount of the purchase price payable pursuant
to Section 3.b.
9. BUYER'S OBLIGATIONS AFTER CLOSING.
a. Indemnity.
Buyer, for itself, and on behalf of its successors and
assigns, shall indemnify and hold harmless Sellers and Sellers' spouses, heirs,
executors, administrators, successors, assigns, and each of them, from and
against any and all claims, demands, liability, actions, causes of action,
costs, expenses, attorneys' fees, and losses which arise out of, or in any
manner relate to, any breach of, or failure by Buyer to perform any of Buyer's
representations, warranties, covenants, or agreements as set forth in this
Agreement.
b. Employees.
(1) In General.
Buyer will offer continuous employment to all
employees of each Company under similar terms and conditions as they now have.
Buyer will perform a compensation review to set targets for 1997 and appropriate
benefits and bonuses.
(2) Michel Vincent.
Buyer will offer and M. Michel Vincent will accept
employment for an indefinite period of time following the Close. His title will
be Director of Operations and he will report to the President-Directeur General,
currently scheduled to be Bruce Leith.
At the Close, Buyer and M. Michel Vincent shall
execute the Employment Agreement attached hereto as Schedule "9-b(2)."
(3) Francoise Vincent.
Francoise Vincent will be employed in her current role
under the same terms and conditions as currently employed.
16
<PAGE> 17
10. COSTS.
The parties hereby represent and warrant to each other that
neither party has incurred any real estate broker's commission, business
opportunity broker commission, finder's fee, or any similar fee in connection
with the transaction contemplated by this Agreement. Each party shall and does
hereby indemnify and hold harmless the other party and its respective heirs,
executors, administrators, legal representatives, successors, assigns, partners,
officers, directors, shareholders, parent corporations, sister corporations,
subsidiaries, affiliates, co-venturers, and each of them, from and against any
and all claims, demands, liability, actions, causes of action, costs, expenses,
attorneys' fees, and obligations arising out of or in any way connected with any
obligation whatsoever by the other party or by any person to pay any real estate
broker's fee, business opportunity broker commission, finder's fee, or other
similar fee in connection with the transaction contemplated by this Agreement.
All parties to this Agreement shall bear their own costs and expenses in
connection with the preparation of this Agreement and their respective
performance under this Agreement.
11. REPRESENTATION BY COUNSEL.
The parties acknowledge and represent that they are signing this
Agreement after having had the opportunity to receive the full legal advice as
to their respective rights from independent legal counsel of their choice. The
parties further acknowledge that, although Buyer's counsel prepared this
Agreement, Sellers had the opportunity to have this Agreement fully reviewed and
approved by independent counsel. Therefore, the interpretation of this Agreement
shall not be construed against Buyer.
12. FULL UNDERSTANDING.
The parties certify that they have read the entirety of this
Agreement and that they fully understand all of this Agreement.
13. REMEDIES.
The parties acknowledge that their rights under this Agreement are
of a special, unique, and an extraordinary character. In the event of the breach
by any party of any provision of this Agreement, especially the provisions
contained in subparagraphs a. and b. of the numbered paragraph of this Agreement
entitled "SELLERS' OBLIGATIONS AFTER CLOSING," the nonbreaching party, in
addition to and as a supplement to such other rights and remedies as may exist
in its favor, may apply to any court of law or equity having jurisdiction to
enforce the specific performance of this Agreement, and/or may apply for
injunctive relief against any act which would violate any of the provisions of
this Agreement.
14. NOTICES.
17
<PAGE> 18
Any notice from one party to another shall be delivered either
personally, via facsimile or via air courier (e.g. Federal Express, United
Parcel Service, DHL), postage fully prepaid, addressed as follows:
If to Sellers: Michel Vincent
8 Allee des Myosotis
93110 Rosny sous Bois
Who is hereby appointed by all Sellers as their agent for purposes of receiving
and giving notices hereunder;
With a copy to:
Antoine Lemetais, Esq.
C, L & A
5 rue Beaujon
75008 Paris
Fax No. 33-1-53-81-53-30
If to Buyer: Interactive Group, Inc.
ATTENTION: Robert C. Vernon, CEO
5095 Murphy Canyon Road
San Diego, CA 92123
Fax No. (619) 565-8570
With a copy to:
Ross J. Schwartz, Esq.
Post Kirby Noonan & Sweat LLP
600 West Broadway, SuiteE1100
San Diego, CA 92101-3355
Fax No. (619) 231-9593
Any notice being delivered shall be deemed delivered upon (a)
personal service, or (b) transmission via facsimile (with the original thereof
to be immediately sent via air courier, postage prepaid), or (c) forty-eight
(48) hours after the time of deposit with a air courier, postage prepaid, as the
case may be. In the event any party changes its address, such change of address
shall be communicated to the other party in the manner set forth in this
numbered paragraph.
15. AMENDMENT.
18
<PAGE> 19
This Agreement shall be amended only by a writing signed by the
parties. If such a written amendment is entered into, such written amendment
shall modify only the provisions of this Agreement specifically modified and
shall be deemed to incorporate by reference, unchanged, all remaining provisions
of this Agreement.
16. ATTORNEYS' FEES.
In the event any party shall be required to commence any action or
proceeding against the other party by reason of any breach or claimed breach of
any provision of this Agreement, to commence any action or proceeding in any way
connected with this Agreement, or to seek a judicial declaration of rights under
this Agreement, the person prevailing in such action or proceeding shall be
entitled to recover from the other person, or to be reimbursed, the prevailing
person's actual attorneys' fees and costs including, but not limited to, expert
witness fees, witness fees, and any and all other fees and costs, whether or not
the proceeding or action proceeds to judgment.
17. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding upon and inure to the benefit of
the parties and their respective heirs, executors, administrators, legal
administrators, legal representatives, successors and assigns.
18. CONSTRUCTION.
Whenever used in this Agreement as the context requires, the
singular number shall include the plural, the plural number shall include the
singular, the masculine gender shall include the feminine and neuter, the
feminine gender shall include the masculine and neuter, and the neuter gender
shall include the masculine and feminine.
19. HEADINGS AND CAPTIONS.
The headings and captions at the beginning of various paragraphs
and subparagraphs of this Agreement shall not be construed to be a substantive
part of this Agreement and shall not in any way define, limit, expand or affect
any provision of this Agreement.
20. FURTHER ACTS.
Each party shall perform any further acts and sign and deliver any
further documents that are reasonably necessary to carry out the provisions of
this Agreement.
21. GOVERNING LAW.
This Agreement shall be governed under the laws of France and
jurisdiction for any dispute shall lie in the courts of Paris, France.
19
<PAGE> 20
22. ENTIRE AGREEMENT.
This Agreement contains the entire understanding between the
parties and supersedes any prior or contemporaneous written or oral agreements
between the parties, including, but not limited to, that written letter of
intent dated June 30, 1997. There are no representations, warranties,
agreements, arrangements, or understandings, oral or written, between the
parties relating to the subject matter of this Agreement.
23. COUNTERPARTS.
This Agreement has been signed in ten originals, one for each
party, on the dates and places shown below.
20
<PAGE> 21
THE UNDERSIGNED ACKNOWLEDGE THAT THIS AGREEMENT WILL FIRST BE SIGNED BY ALL OF
THE SELLERS AND WILL THEN BE SIGNED AND BECOME EFFECTIVE ONCE EXECUTED BY BUYER
IN SAN DIEGO, CALIFORNIA, THE DATE OF THIS AGREEMENT BEING THE DATE OF EXECUTION
OF THIS AGREEMENT BY THE BUYER.
SELLERS: BUYER: San Diego, Ca., July ___, 1997
Paris, France, July 17, 1997 INTERACTIVE GROUP, INC.,
a Delaware corporation
____________________ By: ________________________
Michel Vincent Robert C. Vernon,
Chief Executive Officer
Paris, France, July 17, 1997
_______________________
Christian Depinoy
Paris, France, July 17, 1997
_______________________
Jean-Francois Miletto
Paris, France, July 17, 1997
_______________________
Francoise Vincent
Paris, France, July 17, 1997
_______________________
Jean-Marie Fey
21
<PAGE> 22
Paris, France, July 17, 1997
_______________________
Laurent Masson
Paris, France, July 17, 1997
_______________________
Eric Andre
Paris, France, July 17, 1997
_______________________
Lionel Fleury
Paris, France, July 17, 1997
_______________________
Andre Vincent
22
<PAGE> 23
LIST OF SCHEDULES:
SCHEDULE 3.b.2 Calculation of the Purchase Price (Earn-out)
SCHEDULE 4.d Shareholdings in BICS
SCHEDULE 4.e Financial Statements - GP2 and SODRIV
SCHEDULE 4.e.1 Material Transactions Since the Financial Statement
SCHEDULE 4.f Debts and Liabilities
SCHEDULE 4.i Liens on Equipment
SCHEDULE 4.k List of Modules
SCHEDULE 4.k.1 Third Party Rights
SCHEDULE 4.k.3 List of Licenses with Source Codes
SCHEDULE 4.k.6 List of Licenses
SCHEDULE 4.l Insurance Policies
SCHEDULE 4.m Distribution Contracts
SCHEDULE 4.o Office Lease
SCHEDULE 4.q List of Tangible Properties
SCHEDULE 4.r Intellectual Property Rights
SCHEDULE 4.s List of Employees - Employment Contracts - Profit
Sharing Agreement
SCHEDULE 4.u Powers of Attorney, Bank Accounts and all Officer and
Director Names and Addresses
SCHEDULE 9.b.(2) M. Michel Vincent Employment Contract
<PAGE> 24
SCHEDULE 3.b(2)
CALCULATION OF THE
PURCHASE PRICE
<PAGE> 25
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 1997 CURRENCY: FRENCH FRANCS French Franc Rate: 9
- ---------------------------------- --------- -------------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 4,860 0 0 0 4,860
Third Party 3.00% 4,860 0 0 0 4,860
Infoflo (Intl) 6.25% 28,350 0 0 0 28,350
Infoflo 7.00% 31,752 0 0 0 31,752
69,822 0 0 0 69,822
CUSTOMER BASE:
Hardware 3.00% 2,430 0 0 1,215 1,215
Third Party 3.00% 2,160 0 0 1,080 1,080
Infoflo/JIT (preexisting) 3.00% 16,200 0 0 8,100 8,100
20,790 0 0 10,395 10,395
GPIC:
100% Margin 3.00% 8,370 0 0 3,510 4,860
8,370 0 0 3,510 4,860
MAINTENANCE:
Infoflo (on GPM) 3.00% 0 0 0 0 0
Third Party (on GPM) 3.00% 4,141 0 0 2,070 2,070
GPIC (on revenue) 3.00% 36,001 0 0 18,001 18,001
40,142 0 0 20,071 20,071
T&M:
Based on Revenue 3.00% 63,006 0 0 28,803 34,203
63,006 0 0 28,803 34,203
TOTALS 202,130 0 0 62,779 139,351
</TABLE>
<PAGE> 26
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 1997 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
G.P.MARGIN
- ----------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 162,000 0 0 0 162,000
Third Party 3.00% 162,000 0 0 0 162,000
Infoflo (Intl) 6.25% 453,600 0 0 0 453,600
Infoflo 7.00% 453,600 0 0 0 453,600
1,231,200 0 0 0 1,231,200
CUSTOMER BASE:
Hardware 3.00% 81,000 0 0 40,500 40,500
Third Party 3.00% 72,000 0 0 36,000 36,000
GPIC 3.00% 540,000 0 0 270,000 270,000
693,000 0 0 346,500 346,500
GPIC:
100% Margin 3.00% 279,000 0 0 117,000 162,000
279,000 0 0 117,000 162,000
MAINTENANCE:
Infoflo (on GPM) 3.00% 0 0 0 0 0
Third Party (on GPM) 3.00% 138,024 0 0 69,012 69,012
GPIC (on revenue) 3.00% 1,200,042 0 0 600,021 600,021
1,338,066 10 0 569,033 669,033
T&M:
Based on Revenue 3.00% 2,100,204 0 0 960,093 1,140,111
2,100,204 0 0 960,093 1,140,111
TOTAL 5,641,470 0 0 2,092,626 3,548,844
</TABLE>
<PAGE> 27
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 1998 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 19,440 2,430 4,860 4,860 7,290
Third Party 3.00% 19,440 2,430 4,860 4,860 7,290
Infoflo (Intl) 6.25% 85,050 0 28,350 28,350 28,350
Infoflo 7.00% 158,760 21,168 21,168 31,752 84,672
282,690 26,028 59,238 69,822 127,602
CUSTOMER BASE:
Hardware 3.00% 0 0 0 0 0
Third Party 3.00% 0 0 0 0 0
Infoflo/JIT (preexisting) 3.00% 27,216 2,268 9,072 11,340 4,536
27,216 2,268 9,072 11,340 4,536
GPIC:
100% Margin 3.00% 3,240 0 1,080 1,080 1,080
3,240 0 1,080 1,080 1,080
MAINTENANCE:
Infoflo (on GPM) 3.00% 18,590 3,062 4,046 4,702 6,780
Third Party (on GPM) 3.00% 12,555 2,531 2,936 3,341 3,746
GPIC (on revenue) 3.00% 77,624 19,406 19,406 19,406 19,406
108,768 24,999 26,388 27,449 219,932
T&M:
Based on Revenue 3.00% 256,924 48,284 58,915 69,547 80,178
256,924 48,284 58,915 69,547 80,178
TOTALS 678,838 101,579 154,694 179,238 243,328
</TABLE>
<PAGE> 28
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 1998 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
G.P.MARGIN
- ----------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 648,000 81,000 162,000 162,000 243,000
Third Party 3.00% 648,000 81,000 162,000 162,000 243,000
Infoflo (Intl) 6.25% 1,360,800 0 453,600 453,600 453,600
Infoflo 7.00% 2,268,000 302,400 302,400 453,600 1,209,600
4,924,800 464,400 1,080,000 1,231,200 2,149,200
CUSTOMER BASE:
Hardware 3.00% 0 0 0 0 0
Third Party 3.00% 0 0 0 0 0
GPIC 3.00% 907,200 75,600 302,400 378,000 151,200
907,200 75,600 302,400 378,000 151,200
GPIC:
100% Margin 3.00% 108,000 0 36,000 36,000 36,000
108,000 0 36,000 36,000 36,000
MAINTENANCE:
Infoflo (on GPM) 3.00% 619,650 102,060 134,865 156,735 225,990
Third Party (on GPM) 3.00% 418,500 84,375 97,875 111,375 124,875
GPIC (on revenue) 3.00% 2,587,464 646,866 646,866 646,866 646,866
3,625,614 833,301 879,606 914,976 997,731
T&M:
Based on Revenue 3.00% 8,564,130 1,609,470 1,963,845 2,318,220 2,672,595
8,564,130 1,609,470 1,963,845 2,318,220 2,672,595
TOTALS 18,129,744 2,982,771 4,261,851 4,878,396 6,006,726
</TABLE>
<PAGE> 29
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 1999 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 29,160 4,860 7,290 7,290 9,720
Third Party 3.00% 29,160 4,860 7,290 7,290 9,720
Infoflo (Ind) 6.25% 113,400 0 28,350 28,350 56,700
Infoflo 7.00% 254,016 31,752 63,504 63,504 95,256
425,736 41,472 106,434 106,434 171,396
CUSTOMER BASE:
Hardware 3.00% 0 0 0 0 0
Third Party 3.00% 0 0 0 0 0
Infoflo/JIT (preexisting) 3.00% 40,824 2,268 9,072 11,340 18,144
40,824 2,268 9,072 11,340 18,144
GPIC:
100% Margin 3.00% 3,240 0 1,080 1,080 1,080
3,240 0 1,080 1,080 1,080
MAINTENANCE:
Infoflo, (on GPM) 3.00% 43,740 8,967 9,513 11,700 13,559
Third Party (on GPM) 3.00% 10,125 2,531 2,531 2,531 2,531
GPIC (on revenue) 3.00% 77,624 19,406 19,406 19,406 19,406
131,489 30,904 31,451 33,638 35,497
T&M:
Based on Revenue 3.00% 498,656 114,750 120,656 131,625 131,625
498,656 114,750 120,656 131,625 131,625
TOTALS 1,099,945 189,394 268,693 284,117 357,742
</TABLE>
<PAGE> 30
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 1999 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
G.P.MARGIN
- ----------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 972,000 162,000 243,000 243,000 324,000
Third Party 3.00% 972,000 162,000 243,000 243,000 324,000
Infoflo (Intl) 6.25% 1,814,400 0 453,600 453,600 907,200
Infoflo 7.00% 3,628,800 453,600 907,200 907,200 1,360,800
7,387,200 777,600 1,846,800 1,846,800 2,916,000
CUSTOMER BASE:
Hardware 3.00% 0 0 0 0 0
Third Party 3.00% 0 0 0 0 0
GPIC 3.00% 1,360,800 75,600 302,400 378,000 604,800
1,360,800 75,600 302,400 378,000 604,800
GPIC:
100% Margin 3.00% 108,000 0 36,000 36,000 36,000
108,000 0 36,000 36,000 36,000
MAINTENANCE:
Infoflo (on GPM) 3.00% 1,458,000 298,890 317,115 390,015 451,980
Third Party (on GPM) 3.00% 337,500 84,375 84,375 84,375 84,375
GPIC (on revenue) 3.00% 2,587,464 646,866 646,866 646,866 646,866
4,382,964 1,030,131 1,048,356 1,121,256 1,183,221
T&M:
Based on Revenue 3.00% 16,621,875 3,825,000 4,021,875 4,387,500 4,387,500
16,621,875 3,825,000 4,021,875 4,387,500 4,387,500
TOTALS 29,860,839 5,708,331 7,255,431 7,769,556 9,127,521
</TABLE>
<PAGE> 31
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC CURRENCY: FRENCH FRANCS
- --------------------------- --------- -------------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
1997 202,130 0 0 62,779 139,351
1998 678,838 101,579 154,694 179,238 243,328
1999 1,099,945 189,394 268,693 284,117 357,742
2000 525,945 206,269 319,676 0 0
2,506,858 497,242 743,062 526,133 740,421
US Dollars 445,664
Sterling 278,540
</TABLE>
<PAGE> 32
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 2000 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 38,880 4,860 9,720 9,720 14,580
Third Party 3.00% 38,880 4,860 9,720 9,720 14,580
Infoflo (Intl) 6.25% 56,700 0 0 28,350 28,350
Infoflo 7.00% 444,528 31,752 127,008 95,256 190,512
578,988 41,472 146,448 143,046 248,022
CUSTOMER BASE:
Hardware 3.00% 0 0 0 0 0
Third Party 3.00% 0 0 0 0 0
Infoflo/JIT (preexisting) 3.00% 54,432 2,268 9,072 20,412 22,680
54,432 2,268 9,072 20,412 22,680
GPIC:
100% Margin 3.00% 3,240 0 1,080 1,080 1,080
3,240 0 1,080 1,080 1,080
MAINTENANCE:
Infoflo (on GPM) 3.00% 43,740 8,967 9,513 11,700 13,559
Third Party (on GPM) 3.00% 10,125 2,531 2,531 2,531 2,531
GPIC (on revenue) 3.00% 77,624 19,406 19,406 19,406 19,406
131,489 30,904 31,451 33,638 35,497
T&M:
Based on Revenue 3.00% 526,500 131,626 131,625 131,625 131,625
526,500 131,625 131,625 131,625 131,625
TOTALS 1,294,649 206,269 319,676 329,801 438,904
</TABLE>
<PAGE> 33
7/1/97 EARNOUT3
<TABLE>
<CAPTION>
INTERACTIVE (UK) LTD
- --------------------
EARNOUT CALCULATION RE GPIC - 2000 CURRENCY: FRENCH FRANCS
- ---------------------------------- --------- -------------
G.P.MARGIN
- ----------
% TOTAL QTR1 QTR2 QTR3 QTR4
- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INFOFLO/JIT:
Hardware 3.00% 1,296,000 162,000 324,000 324,000 486,000
Third Party 3.00% 1,296,000 162,000 324,000 324,000 486,000
Infoflo (Intl) 6.25% 907,200 0 0 453,600 453,600
Infoflo 7.00% 6,350,400 453,600 1,814,400 1,360,800 2,721,600
9,849,600 777,600 2,462,400 2,462,400 4,147,200
CUSTOMER BASE:
Hardware 3.00% 0 0 0 0 0
Third Party 3.00% 0 0 0 0 0
GPIC 3.00% 1,814,400 75,600 302,400 680,400 756,000
1,814,400 75,600 302,400 680,400 756,000
GPIC:
100% Margin 3.00% 108,000 0 36,000 36,000 36,000
108,000 0 36,000 36,000 36,000
MAINTENANCE:
Infoflo (on GPM) 3.00% 1,458,000 298,890 317,115 390,015 451,980
Third Party (on GPM) 3.00% 337,500 84,375 84,375 84,375 84,375
GPIC (on revenue) 3.00% 2,587,464 646,866 646,866 646,866 646,866
4,382,964 1,030,131 1,048,356 1,121,256 1,183,221
T&M:
Based on Revenue 3.00% 17,550,000 4,387,500 4,387,500 4,387,500 4,387,500
17,550,000 4,387,500 4,387,500 4,387,500 4,387,500
TOTALS 33,704,964 6,270,831 8,236,656 8,687,556 10,509,921
</TABLE>
<PAGE> 34
SUMMARY OF SCHEDULE 4.o
The Lease Agreement is between Compagnie d'Investissement et de Gestion
Immobiliere and Societe Genie Productique et Gestion de Production SA("GP2").
Pursuant to the Lease Agreement, GP2 will lease property located at 13 rue du
Pont des Halles, Rungis, France 94150, consisting of 385 square meters of
office space and 12 exterior parking places. The term of the Lease Agreement is
for nine years, commencing in August 1989 and terminating on July 31, 1998. The
lease amount is 310,600 Francs H.T. per year, payable in four equal payments on
the first day of each trimester.
<PAGE> 35
SCHEDULE 4.o
-----------------
4.o
-----------------
===================
BAIL
===================
<PAGE> 36
BAIL DE L'IMMEUBLE STRATEGIC
13 RUE DU PONT DES HALLES
94150 RUNGIS
<PAGE> 37
C O M P A R U T I O N
---------------------
ENTRE LES SOUSSIGNES
- --------------------
COMPAGNIE D'INVESTISSEMENT ET DE GESTION IMMOBILIERRE
dont le siege social est sis
93 rue Jouffroy - 75017 PARIS
represente par son mandataire la Societe IMPAC
Administrateur de Biens dont le siege social est
a PARIS 75017 - 6 rue Brey
elle-meme representee par son directeur General
Monsieur Jean-Paul PUJOL.
Ci-apres denomme le BAILLEUR
d'une part,
- ----------
ET
- --
SOCIETE GENIE PRODUCTIQUE ET GESTION DE PRODUCTION
SA au Capital de 800 000 Francs ayant son siege
social 25 rue du Pont des Halles - CHEVILLY-LA-RUE
94666 RUNGIS CEDEX.
representee aux presentes par son President Directeur
General Monsieur Michel VINCENT
Ci-apres denomme Le PRENEUR
d'autre part.
- ------------
<PAGE> 38
CHAPITRE I
DESCRIPTION
-----------
ARTICLE 1 - OBJET
ARTICLE 1 - OBJET
- -----------------
IL A ETE EXPOSE CE QUI SUIT :
Le BAILLEUR est proprietaire des locaux situes :
13 RUE DU PONT DES HALLES - 94150 RUNGIS
Ces locaux sont libres de toute occupation.
CECI EXPOSE, IL A ETE CONVENE CE QUI SUIT :
Par les presentes, le BAILLEUR fait bail et donne a loyer, a titre
commercial, au PRENEUR, qui accepte, aux conditions habituelles et de droits
preveus par le decret no 53.960 du 30 septembre 1953, aux dispositions
des textes par lesquels il a ete complete et aux conditions particulieres
suivantes, les locaux dont la designation suit.
ARTICLE 2 - DESIGNATION
- -----------------------
Un ensemble immobilier sis :
13 RUE DU PONT DES HALLES - 94150 RUNGIS
- ----------------------------------------
comprenant :
Au rez-de-chaussee avec un acces direct dans les locaux, une surface de bureaux
de 385 m2, cloisonnes avec de nombreux placards, sanitaires.
12 emplacements de voiture exterieurs No 280 281 282 283 326 326 327 328
329 330 331 332 333
Le PRENEUR declarant parfaitement connaitre ces locaux pour les avois vus et
visites en vue des presentes, sans qu'il soit necessaire d'en faire plus ample
designation et les accepter dans l'etat ou ils se trouvent tels qu'ils existent,
s'etendent, se poursuivent et comportent avec toutes leurs dependances.
ARTICLE 3 - ETAT DES LIEUX
- --------------------------
Un etat des lieux sera etabli contradictoirement par les parties a l'entree du
PRENEUR et sera annexe aux presentes. Aux cas ou pour une raison quelconque cet
etat des lieux ne serait pas ainsi dresse, et notamment si le PRENEUR faisait
defaut, les locaux seront consideres comme ayant ete loues en parfait etat.
<PAGE> 39
ARTICLE 4 - DUREE
- -----------------
Le present bail est consenti et accepte pour une duree de neuf annees
entieres et consecutives, qui commenceront a courrir le : 1er aout 1989 pour se
terminer le 31 juillet 1998.
Il cessera dans les conditions fixees par l'article 5 du decret du
30 septembre 1953.
Le PRENEUR aura la faculte de donner conge a l'expiration de chaque periode
triennale, en avisant le BAILLEUR par acte extrajuridiciaire, effectue au plus
tard six mois avant chaque echeance triennale.
ARTICLE 5 - DESTINATION
- -----------------------
Le PRENEUR devra utiliser les locaux objet du present bail, dans le cadre
de son activite et a l'usage exclusif de : bureaux commerciaux pour la
conception, realisation et commercialisation de systemes informatiques destines
a la gestion des entreprises paisibilement et conformement aux articles 1728 et
1729 du Code Civil.
Le PRENEUR ne pourra changer cette destination sans l'accord expres et par
ecrit du BAILLEUR.
Tous travaux ou transformation de quelque nature que ce soit dans les
locaux loues qui seraient necessites par le changement d'exploitation ou pour
toute autre raison, ne pourront egalement etre executes sans l'accord expres et
par ecrit du BAILLEUR. Celui-ci ne pourra s'opposer a ces travaux de
transformation que pour des raisons serieuses et legitimes.
Le PRENEUR devra, prealablement a toute expoloitation, obtenir les
autorisations administratives necessaires et se conformer expressement a toutes
prescriptions et reglements en vigueur concernant son exploitation.
*************
*********
*****
<PAGE> 40
CHAPITRE II
CHARGES ET CONDITIONS
---------------------
Le present bail est consenti et accepte sous les charges et conditions
ordinaires et de droit et sous celles qui suivent, que le PRENEUR s'engage a
observer ou a subir, sans pouvoir reclamer ni resiliation ni diminution de
loyer, ni dommages et interets.
Sa modification ne pourra resulter que d'un accord ecrit et circonstancie
des BAILLEUR et PRENEUR.
En consequence, toutes tolerances ou attitudes passives du BAILLEUR ne
devront jamais etre considerees comme un droit meme avec le temps, le BAILLEUR
pouvant toujours y mettre fin.
ARTICLE 6 - CONDITIONS GENERALES DE JOUISSANCE
- ----------------------------------------------
1er) Le PRENEUR prendra les locaux, objet du present bail, dans l'etat
ou ils se trouvent au moment de l'entree en jouissance, sans pouvoir exiger du
BAILLEUR, pendant toute sa duree, aucune mise en etat, ni aucune reparation de
quelque nature ou de quelque importance que ce soit, y compris celles imposees
par l'autorite administrative, a la seule exception des grosses reparations,
telles que prevues par l'article 606 du Code Civil.
Par derogation aux articles 1719 et suivants du Code Civil, le BAILLEUR
n'est pas garant de la conformite des locaux a l'egard de l'application des
reglements administratifs et de Police.
2eme) Le PRENEUR devra satisfaire a toutes les charges de ville, de
Police et de voierie dont les locataires sont ordinairement tenus, le tout de
maniere que le BAILLEUR ne puisse aucunement etre inquiete ni recherche a ce
sujet. En cas d'expropriation pour cause d'utilite publique, le PRENEUR ne
pourra rien reclamer au BAILLEUR, tous ses droit etant reserves contre
la partie expropriatrice.
Il devra respecter les charges et conditions du reglement de copropriete,
s'il en existe un, et celles imposees par le syndicat des coproprietaires ou
tous autres organismes crees eventuellement entre proprietaires et/ou occupants
de l'immeuble et/ou des immeubles voisins.
3eme) Le PRENEUR devra s'abstenir de tout ce qui pourrait nuire a
l'activite des autres locataires, veiller a ce que la tranquillite de l'immeuble
ne soit troublee en aucune maniere, de son fait, ou de celui de ses preposes et,
en assurer le bon ordre, la proprete, l'hygiene ou le service, notamment ne
faire aucun travail, ni quoi que ce soit qui puisse gener les autres locataires
ou coproprietaires.
<PAGE> 41
4eme) Le Preneur ne pourra tenir en aucun cas pour responsable le Bailleur
en cas de suppression temporaire ou reduction des services collectifs tels que
gardiens, eau, gaz, electricite, telephone, chauffage, ascenseur, monte-charges
etc. . .
ARTICLE 7 - TRAVAUX - INSTALLATIONS - AMENAGEMENTS
- --------------------------------------------------
Le PRENEUR devra souffrir et laisser faire, sans pouvoir pretendre a aucune
indemnite, ni diminution de loyer, tous travaux de reparation, reconstruction,
surelevation, agrandissement et autres, que le BAILLEUR serait amene a faire
executer en cours de bail dans les lieux loues, ainsi que dans l'immeuble dont
ils dependent, quelles qu'en soient la nature et la duree, cette derniere
excedat-elle quarante jours, et ce, par derogation expresse a l'article 1724 du
Code Civil.
Le PRENEUR devra obligatoirement, pendant tout le cours du bail, conserver
en bon etat d'entretien lesdits locaux et tous les amenagements qu'il aura
apportes, en conformite avec les articles 1754 et 605 du Code Civil.
Le PRENEUR ne pourra effectuer dans les lieux loues de travaux qui puissent
changer la destination de l'immeuble ou nuire a sa solidite.
De meme, il ne pourra faire supporter aux planchers une charge superieure a
leur resistance sous peine d'etre responsable de tous desordre au accidents.
Tous les travaux comportant changement de distribution, demolitions ou
percements de murs, de poutres ou de planchers, d'installation de machinerie
qu'elle qu'en soit la source d'energie, devront faire l'objet d'une autorisation
prealable et ecrite du Bailleur.
Pour obtenir celle-ci, le Preneur communiquera au BAILLEUR tous documents
relatifs aux travaux ou installations projetes tels que plans, notes techniques,
devis etc. . .
Les travaux devront etre executes aux frais, risques et perils du Preneur
et sous la surveillance d'un atchitecte ou d'un Bureau d'Etudes Techniques agree
par le BAILLEUR, et dont les honoraires seront supportes par le PRENEUR.
Le PRENEUR fera son affaire personnelle de toutes reclamations faites par
les autres occupants de l'immeuble, les voisins ou les tiers, notamment pour
bruits, odeurs, chaleur ou trepidations.
<PAGE> 42
Le PRENEUR devra, en fin de bail, de quelque maniere qu'elle arrive,
rendre les locaux loues ainsi que les additions apportees en parfait etat
d'entretien et de reparations. Tous les embellissements, ameliorations,
installations et decors quelconques qui seraient faits au cours du bail,
resteront, a la fin de celui-ci, de quelque maniere qu'elle arrive, la
propriete du BAILLEUR, sans aucune indemnite, a moins que celui-ci prefere
demander la retablissement des lieux dans leur etat primitif aux frais du
PRENUER, meme s'il a autorise ces travaux.
Le PRENEUR ne pourra poser, sans l'accord prealable ecrit du BAILLEUR,
ni plaque, ni enseigne, ni store, ou realiser une installation quelconque
interessant l'aspect exterieur de l'immeuble.
Le PRENEUR fera son afaire personnelle des autorisations administratives
exigees et du reglement des taxes qui pourraient etre dues de ce fait, de facon
a ce que le Bailleur ne soit jamais inquiete ni recherche a ce sujet.
Article 8 - ENTRETIEN
- ---------------------
Le PRENEUR devra entretenir a ses frais tous equipements specifiques, tels
que climatisation, ventilation, installations electriques et telephoniques,
conformement aux normes en vigueur et les rendre en bon etat d'utilisation. A
cette fin, il souscrira tous contrats d'entretien.
Le PRENEUR devra maintenir les fermetures, volets, rideaux de fermeture en
bon etat de proprete, d'entretien et de fonctionnement. Il devra, de la meme
facon, proceder a la refection de toutes les peintures, au moins tous les cinq
ans.
Enfin, il devra entretenir les revetements de sols en parfait etat, et
notamment remedier a l'apparition de taches, brulures, dechirures, trous ou
decollements.
A defaut d'execution, le BAILLEUR pourra se substituer au Preneur et les
faire realiser par une entreprise de son choix, aux fraix exclusifs du PRENEUR,
sans prejudice de tous frais de remise en etat consecutifs a des dommages causes
par l'inobservation des dispositions de la presente clause.
Le PRENEUR ne devra, en aucun cas, rien faire ou laisser faire qui puisse
deteriorer les locaux, et il devra prevenir immediatement le BAILLEUR de toute
atteinte qui serait portee a la propriete, de toutes degradations ou
deteriorations qui viendraient a se produire dans les locaux loues, et qui
rendraient necessaires des travaux incombant au BAILLEUR.
<PAGE> 43
Article 9 - VISITE ET SURVEILLANCE DES LOCAUX
- ---------------------------------------------
Le BAILLEUR aura le droit de faire visiter les locaux loues par son
architecte ou son mandataire, au moins une fois par an, pour s'assurer de
l'execution de tous travaux d'entretien, de reparation et de ravalement.
De meme, le PRENEUR devra laisser au representant du BAILLEUR l'acces des
locaux loues chaque fois qu'il jugera utile et notamment en cas de travaux, et
durant les six derniers mois de jouissance.
Article 10 - CONTRIBUTIONS - IMPOTS - TAXES
- -------------------------------------------
Le PRENEUR devra payer ses contributions personnelles, mobiliers, taxe
professionnelle, taxes locatives et autres de toute nature le concernant
particulierement ou relatives a son commerce, auxquelles les locataires sont ou
pourront etre assujettis, de supporter la taxe d'enlevement des ordures
menageres, la taxe de balayage, toutes nouvelles contributions, taxes
municipales ou autres et augmentations d'impots pouvant etre creees a la charge
des locataires, de toute nature et sous quelque denomination que ce puisse
etre, et de rembourser au BAILLEUR sur simple requete de sa part les sommes
avancees par lui a ce sujet, de supporter la charge d'impot foncier ou tout
nouvel impot sur les proprietes baties ou non baties pouvant lui etre
substitue.
De supporter, a compter du jour de la mise a disposition, toutes les
charges de ville et de police et de se soumettre a tous les reglements en
vigueur, et specialement, aux regles de sa profession.
Article 11 - RESPONSABILITE - RECOURS
- -------------------------------------
Le PRENEUR assurera les risques propres a son exploitation. Il devra en
particulier souscrire :
a) une police d'assurance responsabilite civile garantissant les
consequences pecuniaires de la responsabilite civile qu'il peut
encourir en raison des dommages corporels, materiels et immateriels
causes aux tiers.
b) une police d'assurance incendie, explosions, degats des eaux
garantissant :
- ses biens propres a concurrence de leur valeur d'assurances au jour
du sinistre,
- ses responsabilites d'occupant a l'egard des voisins et des tiers
en general.
La police d'assurance definie a l'alinea ci-dessus, devra comporter une
clause de renonciation a recours contre le BAILLEUR.
Le PRENEUR s'engage a rembourser au BAILLEUR tous frais d'assurances de
l'immeuble et toutes surprimes qui, en raison de son etat et de son fait,
seraient reclamee au BAILLEUR.
<PAGE> 44
Il s'engage a aviser, par lettre recommandee, le BAILLEUR de toute cause de
risques aggravants (incendie, explosion, degats des eaux) pouvant resulter de la
creation de son commerce ou de toute modification de son activite, celui-ci ne
pouvant etre tenu pour avise de l'existence de risques aggravants que par le
reception de ladite lettre.
Les primes de ces differents contrats seront a la charge exclusive du
PRENEUR qui s'oblige a leur paiements; il justifiera du paiements de ces primes
et de l'existence d'une clause de renonciation a recours contre le BAILLEUR a
toute requisition, en produisant une attestation de ses assureurs precisant
egalement le montant des capitaux assures.
Le PRENEUR s'engage a renoncer a tout recours en responsabilite contre le
BAILLEUR, notamment :
a) en cas de vol, cambriolage ou tout acte delictueux ou criminel dont le
PRENEUR pourrait etre victime dans les lieux loues.
b) au cas ou les lieux viendraient a etre detruits en partie ou en totalite
ou expropries.
c) en cas de troubles apportes a la jouissance par le fait de tiers quelle
que soit leur qualite, le PRENEUR devant agir directement contre eux sans
pouvoir mettre en cause le BAILLEUR.
Le Preneur devra proceder a l'installation d'extincteurs portatifs
conformement au reglement de l'assemblee pleniere des compagnies et des Societes
d'assurance contre l'incendie.
Il est expressement specifie que l'incendie ou la destruction pour tout
autre cause des constructions, totale ou partielle n'entrainera pas la
resiliation ni la suspension du present bail et le loyer ci-apres et aux epoques
convenues, sauf au PRENEUR de s'assurer des pertes et des dommages pouvant
resulter pour lui des sinistres.
Article 12 - CESSION DE BAIL - SOUS-LOCATION
- --------------------------------------------
Le PRENEUR ne pourra ceder son droit au present bail sans le consentement
expres et par ecrit du Bailleur.
Toutefois, il pourra librement ceder ledit droit au bail a l'acquereur de
son fonds de commerce ou de son entreprise.
Toute cession devra avoir lieu par acte notaire ou sous seing prive auquel
le BAILLEUR sera appele.
Les cessionnaires devront s'obliger solidairement avec le Preneur au
paiement des loyers et a l'execution des conditions du bail.
Quant au PRENEUR, il restera repondant solidaire de son successeur et de
tour successeurs successifs au paiement des loyers et de l'execution des
conditions du bail.
<PAGE> 45
Une copie executoire de l'acte de cession ou un original enregistre devra
etre remis au BAILLEUR, sans frais pour lui, le PRENEUR etant tenu de
respecter les regles de l'article 1690 du Code Civil.
En outre, tous ceux qui seront devenus successivement cessionnaires du bail
demeureront tenus envers le Bailleur, solidairement entre eux et avec le
PRENEUR, au paiement des loyers et a l'execution des conditions du bail pendant
toute la duree de celui-ci alors meme qu'ils ne seraient plus dans les lieux et
auraient meme cede leur droit.
Le PRENEUR s'interdit formellement, sous peine de resiliation du bail :
- de sous-louer tout ou partie des locaux objet des presentes, sans le
consentement expres et par ecrit du BAILLEUR.
- de conceder la jouissance des lieux a qui que ce soit, meme a titre
gratuit ou precaire.
Toutefois, et par derogation, le BAILLEUR autorise la PRENEUR a sous-louer
a toutes filiales ou societes de son Groupe dans lesquelles il aurait une
participation directe ou indirecte au Capital Social, mais a la condition
expresse que la BAILLEUR n'ait jamais a connaitre, tant pour le paiement du
loyer que pour l'execution des clauses du present bail, que le PRENEUR qui en
demeurera seul responsable et que le PRENEUR rapporte, prealablement au
BAILLEUR la justification de la filiation du sous-locataire au sens de
l'article 145 du Code General des Impots.
Le PRENEUR devra notifier au BAILLEUR les modifications des statuts de la
Societe preneuse (transformation, changement de denomination ou de raison
sociale, changement de Siege Social ...) dans le mois de la modification.
Le PRENEUR devra signifier au BAILLEUR dans les formes prevues par
l'article 1690 du Code Civil toute fusion ou apport partiel d'actif. En cas
d'apport partiel d'actif, la Societe apporteuse restera garante et repondant
solidaire du beneficiaire de l'apport, du paiement des loyers et charges et de
l'execution des conditions du bail.
Article 13 - RESTITUTION DES LOCAUX
- -----------------------------------
En fin de bail, le PRENEUR devra, quinze jours a l'avance, informer le
BAILLEUR de la date a laquelle il demenagera et lui communiquer sa nouvelle
adresse.
Avant de demenager, le PRENEUR devra, prealablement a tout enlevement,
meme partiel des mobiliers et materiels, avoir acquitte la totalite des termes
de loyer et accessoires et justifier par presentation des acquits, du paiement
des contributions a sa charge tant pour les annees que pour l'annee en cours.
<PAGE> 46
Le PRENEUR devra, au plus tard le jour de l'expiration du bail, rendre
les lieux loues en bon etat de reparation, ce qui sera constate par un etat des
lieux a la suite duquel le PRENEUR devra remettre les clefs au BAILLEUR. Cet
etat des lieux, dont la date sera determinee par lettre emanant du PRENEUR,
comportera s'il y a lieu le releve des reparations a effectuer.
A defaut, l'etat des lieux sera dresse le jour de l'expiration du bail ;
au cas ou le PRENEUR ne serait pas present au jour et heure fixes pour l'etat
des lieux, celui-ci sera etabli par un Huissier qui pourra se faire assister
d'un serrurier pour penetrer dans les locaux, les frais correspondants etant a
la charge du PRENEUR.
Si des reparations ou travaux s'averaient necessaires, le PRENEUR devra,
dans les huit jours calendaires de la notification des devis etablis par un
Bureau d'Etudes Techniques ou des entreprises agreees par le BAILLEUR, donner
son accord sur lesdits devis.
Si le PRENEUR ne manifeste pas son intention dans le delai ci-dessus, les
devis seront reputes agrees et le BAILLEUR pourra les faire executer par des
entreprises de son choix en en reclamant le montant au PRENEUR.
Si le PRENEUR manifeste son intention de les executer lui-meme, il devra
s'engager, a titre de condition essentielle et determinante, a les faire
executer par des entreprises qualifiees et agreees par la BAILLEUR.
<PAGE> 47
CHAPITRE III
OBLIGATIONS FINANCIERES
-----------------------
ARTICLE 14 - LOYER
- ------------------
Le present bail est consenti et accepte moyennant un loyer HT principal
annuel, valeur de base dont le montant est de :
FRS 310 600. - H.T. (TROIS CENT DIX MILLE SIX CENTS FRANCS HT)
que le PRENEUR s'oblige a payer d'avance au BAILLEUR en quatre termes egaux, le
premier jour de chaque trimestre.
Le premier reglement devant intervenir le 1er aout 1989 et correspond a la
periode du : 1er aout 1989 au 31 aout 1989.
Le paiement mensuel se poursuivra jusqu'au 31 decembre 1989. Ensuite, le
paiement s'effectuera par trimestre et d'avance.
ARTICLE 15 - ACCESSOIRES DU LOYER
- ---------------------------------
Le PRENEUR remoursera au BAILLEUR sa quote-parte des charges,
contributions, assurances, taxes et prestations au prorate du nombre de
milliemes de charges generales ou speciales affectees aux lots loues.
Ce remboursement s'effectuera par appel d'une provision trimestrielle
versee par le PRENEUR en sus du loyer et en meme temps, dont le montant est fixe
a : 18.000.- Frs HT
Le BAILLEUR se reservant la faculte de modifier a tout moment le montant de
ladite provision pour tenir compte de la fluctation des charges.
A la cloture de chaque periode annuelle, le montant des provisions versees
sera regularise en plus ou en moins, en fonction du releve reel de l'ensemble
des charges.
ARTICLE 16 - TAXES ET DROITS
- ----------------------------
Le loyer et ses accessoires ci-dessus mentionnes s'entendent hors taxes, le
BAILLEUR ayant opte pour l'assujetissement a la T.V.A. en application de
l'article 260-2 degre du C.G.I.
Le PRENEUR s'engage a acquitter entre les mains du BAILLEUR le montant de
la T.V.A. ou toute autre taxe nouvelle ou de substitution, ou tout autre droit,
au taux legalement en vigueur au jour de chaque reglement.
<PAGE> 48
ARTICLE 17 - CLAUSE DE REVISION DU LOYER
- ----------------------------------------
De convention expresse entre les parties, sans quoi le present bail
n'aurait pas ete consenti, ladite clause etant une condition determinante, le
loyer tel qu'il est defini ci-dessus est revisable tous les 1er juillet de
chaque annee et pour la premiere fois le 1er juillet 1990 en fonction de la
variation de l'Indice National INSEE France, entiere du cout de la construction.
Pour le calcul du loyer revise, l'indice INSEE a prendre en consideration
sera le dernier indice publie par le Ministere de l'Equipement et du Logement au
moment de la demande de revision.
La comparaison sera effectuee avec l'indice INSEE, reference dernier indice
publie au 4eme trimestre 1988, soit : 919.
Au cas ou l'indice mentionne ci-dessus ne serait plus publie, les parties
adopteront l'indice officiel de remplacement et utiliseront la formule de
raccordement adequate.
La presente indexation annuelle exclut et remplace la revision triennale
prevue par l'article 27 du decret du 30 decembre 1953.
Si l'indice vise au present article venait a cesser de faire l'objet d'une
publication par l'INSEE, les parties decident de se referer a toute autre
publication de l'indice retenu qui serait assuree par tel organisme public ou
prive des statistiques choisi par elles d'un commun accord, ou, faute d'accord,
designe par le President du Tribunal de Commerce de Paris.
ARTICLE 18 - MODALITE DE REGLEMENT
- ----------------------------------
Tous paiements auront lieu au domicile du BAILLEUR ou de son Mandataire,
par cheque ou virement ou prelevement bancaire.
En cas de non paiement a echeance du loyer du par le PRENEUR ou de toute
autre somme due en vertu du present bail, et qui n'aurait pas ete reglee dans
les delais requis, le BAILLEUR percevra de plein droit et huit jours apres, une
mise en demeure prealable demeuree infructueuse, un interet de retard a dater de
la date d'echeance calcule "prorata temporis" au taux de base bancaire majore de
quatre points, tout mois commence etant du en entier.
<PAGE> 49
ARTICLE 19 - DEPOT DE GARANTIE
- ------------------------------
Pour garantir l'execution des obligations incombant au PRENEUR celui-ci
verse au BAILLEUR qui le reconnait une somme de 77 650.- correspondant a TROIS
MOIS de loyer H.T.
Le BAILLEUR pourra librement disposer du depot de garantie jusqu'a
l'expiration du bail, ledit depot etant affecte au reglement des indemnites que
le PRENEUR pourrait devoir au BAILLEUR a sa sortie des lieux.
De convention expresse, le depot de garantie ne sera pas productif
d'interets.
En cas de modification du montant du loyer, ce depot de garantie sera diminue
ou majore de maniere a correspondre toujours a trois mois de loyer en
principal.
Dans le cas de resiliation du bail, comme il va etre dit plus loin, par suite
d'inexecution de l'une de ses conditions pour une cause quelconque imputable au
PRENEUR, le depot de garantie restera acquis au BAILLEUR, a titre des premiers
dommages et interets, sans prejudice de tous autres.
A l'expiration normale de la jouissance des lieux, ce depot sera restitue au
PRENEUR, apres demenagement et remise des clefs deduction faite de toutes
sommes dont le PRENEUR pourrait etre debiteur envers le BAILLEUR, etant observe
et convenu que le PRENEUR ne pourra jamais imputer des loyers, charges et
accessoires sur ces derniers mois des jouissance par compensation avec le depot
de garantie entre les mains du BAILLEUR.
<PAGE> 50
CHAPITRE IV
AUTRES OBLIGATIONS
------------------
ARTICLE 20 - CLAUSE RESOLUTOIRE
- -------------------------------
Le PRENEUR devra maintenir les locaux loues pendant tout le cours du bail,
constamment garnis de materiel et objets mobiliers en quantite et valeur
suffisantes pour repondre du paiement du loyer et de l'execution des conditions
du bail.
ARTICLE 21 - CLAUSE RESOLUTOIRE
- -------------------------------
Il est expressement convenu qu'a defaut de paiement a son echeance d'un
seul terme de loyer ou de tout rappel de loyer consecutif a une augmentation de
celui-ci par application de la clause de revision, comme a defaut de
remboursement de frais, taxes locatives, impositions, charges de copropriete ou
prestations qui constituent l'accessoire ou, enfin, a defaut de l'execution de
l'une ou l'autre des conditions du bail ou du reglement de copropriete qui fera
egalement la convention des parties, et un mois apres un simple commandement de
payer ou une sommation d'executer la clause notee demeuree sans effet, le
present bail sera resilie de plein droit si bon semble au BAILLEUR sans qu'il
soit besoin de formuler une demande en justice.
Du jour de la resiliation du bail, le BAILLEUR rentrera immediatement, de
plein droit, dans la libre disposition des lieux loues.
Dans le cas ou le PRENEUR se refuserait a evacuer les lieux de corps et de
biens, son expulsion ainsi que celle de tout occupant de son chef pourrait avoir
lieu sans delai en vertu d'une simple ordonnance de refere rendue par
Monsieur le President du Tribunal de Grande Instance a qui competence de
juridiction est expressement attribuee aux termes des presentes.
Cette ordonnance sera executoire par provison sur minute et avant
enregistrement nonobstant effet.
A defaut par le PRENEUR d'evacuer les locaux, il sera redevant au BAILLEUR
de plein droit, et sans auxcun preavis, d'une indemnite d'occupation fixee
d'ores et deja, pour chaque jour de retard, au double du loyer en cours, calcule
prorata temporis.
Tous les frais necessites par l'expulsion y compris les honoraires
d'avocat et ses suites, seront a la charge du PRENEUR.
<PAGE> 51
ARTICLE 22 - FRAIS ET ENREGISTREMENT
- ------------------------------------
Le PRENEUR prendra a sa charge, tous les frais occasionnes par la prise a
bail des locaux faisant l'objet des presentes, a savoir :
- honoraires de Negociation et de Conseil de la Societe IMPAC Conseil en
Immobilier d'Entreprise.
- honoraires de redaction de bail
- droits de timbre et d'enregistrement (en cas d'enregistrement des
presentes) selon le decompte et les factures qui lui on ete precedemment
soumis.
ARTICLE 23 - ELECTION DE DOMICILE
- ---------------------------------
Pour l'execution des presentes et de leurs suites, les parties font
election de domicile en leur siege social respectif.
Tout litige concernant l'execution des presentes et de leurs suites sera
soumis aux tribunaux de Paris.
Fait a Paris,
Le 14 juin 1989
Mots rayes
En trois exemplaires Mots rajoutes
LE BAILLEUR LE PRENEUR
- ----------- ----------
Lu et approuve Lu et approuve
<PAGE> 52
RESUMES DES CONDITIONS
PARTICULIERES
1 - DESIGNATION
-----------
- Immeuble = 13 RUE DU PONT DES HALLES 94150 RUNGIS
- Locaux loues = 385 m2 + 12 emplacements voiture exterieurs
2 - DATES DE REFERENCE
------------------
- Date d'effet du present bail = ler aout 1989
- Date de mise a disposition = ler aout 1989
- Date d'exigibilite du premier loyer = ler aout 1989
3 - DESTINATION
-----------
- Activites du PRENEUR = GENIE PRODUCTIQUE
GESTION DE PRODUCTION
- Usage = Bureaux a usage administratif
et commercial
4 - REGIME FISCAL T.V.A. a 18,60 %
------------------------------
5 - LOYER ANNUEL DE BASE
--------------------
- Loyer annuel de base hors taxes = 310 660,- Frs
- Taxes = 57 371,60 Frs
- Loyer annuel de base T.T.C.
soit la somme de : = 368 371,60 Frs
Paiement du premier terme le = ler aout 1989
Prorata temporis jusqu'au = paiement mensuel jusgu'au
31 Decembre 1989
6 - PROVISION MINIMALES SUR CHARGES 18.000.- Frs
-------------------------------
7 - DEPOT DE GARANTIE 77.650.- Frs
-----------------
8 - INDICES DE REFERENCE 4eme trimestre 1988 : 919
--------------------
9 - AUTRES CONDITIONS PARTICULIERS
------------------------------
- Autorisation de sous-location a toutes filiales ou societes de son groupe
- Autorisation de cession sous reserve d'acceptation du Bailleur.
Paris, le 14 Juin 1989
Le Bailleur Le Preneur
<PAGE> 53
SUMMARY OF SCHEDULE 4.s
The attached exhibit contains the employment agreements of all employees of
Genie Productique et Gestion de Production ("GP2"). Each contract consists of
GP2's standard form of employment agreement. The employment agreements generally
cover job descriptions, duration of employment, place of work, compensation,
hours of work, paid holidays, notice requirement to terminate the contract,
exclusivity of employment and confidential information. Each employee is also
subject to GP2's profit sharing agreement. The profit sharing agreement provides
all employees with a minimum of six months of service, the opportunity to
participate in the net profits of the company as determined by the company's
chartered accountants. Under the terms of the agreement, employees are eligible
to share 20 percent of the company's net profits to a maximum of 10 percent of
the individual employees' annual base salaries allocated proportionately over
the company's total salary base. The profit sharing agreement has a three year
term expiring on December 31, 1997 and contains a three year renewal option.
<PAGE> 54
SCHEDULE 4.s
============
-----------------
4.s
-----------------
===================================
LISTE DES SALARIES
CONTRAT D'INTERESSEMENT
====================================
<PAGE> 55
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
LISTE DU PERSONNEL DE LA SOCIETE GP2
====================================
Eric ANDRE
Bruni ANZOLA
Isabelle BLANZY
Celine BRETEAU
Philippe BURON
Christian DEPINOY
Valerie DIVARE
Christine DROCHON
Lionel FLEURY
Frederic MIGNOT
Mohamed MHIRI
Isabelle SCHMITT
Francoise VINCENT
Michel VINCENT
<PAGE> 56
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Monsieur Eric ANDRE
5 Avenue du Parc
92400 COURBEVOIE
OBJET : CONTRAT DE TRAVAIL
- ----- (Application de la Directive Europeenne du 14 October 1991)
Monsieur,
Nous vous confirmons ci-apres, le conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauche le 01/08/1982 par la societe SESA. Votre contrat de
travail a ete transfere de SESA a GP2 le 28/02/1985, dans le cadre d'une
cession partielle de fonds de commerce.
Votre anciennete au 01 Janvier 1994 est donc de 11 ans et 5 mois.
Le conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Ingenieur Principal
Position repere : 3.1
Indice hierarchique : 170
<PAGE> 57
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une
duree indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France et parfois a
l'Etranger.
En outre, notre societe se reserve le droit de modifier votre point d'attache
en region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction d'Ingenieur Principal vous amenera a prendre la responsabilite,
en tant que chef de projet, de projets informatiques confies a l'entreprise.
Vous serez en outre membre du comite de direction de l'entreprise.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suite :
vos appointements mensuels seront de 22.800 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 273.600 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 58
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE REPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des information confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 59
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos setiments distingues.
Lu et approuve
Michel VINCENT
President Directeur General
<PAGE> 60
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations forfaitaires
ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations, de service
en-cours, produits constates d'avance, ...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x F (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 61
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x F (R1/01)
2eme trimestre A2 = SF x K x f (R2/02) - A1
3eme trimestre A3 = SF x K x f (R3/03) - A1 - A2
4eme trimestre A4 = SF x K x f (R/0) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4; O2 = 0/2; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Eric ANDRE est egal a: 0,12
<PAGE> 62
[ LOGO ]
[ CONTRAT DE QUALIFICATION -- FORM ]
<PAGE> 63
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Mademoiselle Isabelle BLANZY
3 Allee ds Acacias
94400 VITRY SUR SEINE
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Mademoiselle,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauchee le 25/07/1988, apres un stage d'initiation a la vie
professionnelle de 6 mois.
Votre anciennente au 01 Janvier 1994 est donc de 5 ans et 11 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employee en qualite de : Secretaire
Position repere : 2.3
Indice hierarchique : 355
<PAGE> 64
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez basee en nos bureaux de RUNGIS.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Vous exercerez la fonction de responsable du secretariat de l'entreprise, en
prenant plus particulierement en charge le secretariat commercial.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 10.000 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 120.000 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
<PAGE> 65
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont
vous prendriez connaissance a l'occasion de votre travail, de quelque nature
qu'elles soient, et tant pendant la duree du contrat qu'apres sa cessation, et
quelle qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis
ni indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou
de ses dirigeants.
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
<PAGE> 66
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention
"Lu et approuve", chaque page devant etre paraphee.
Veuillez agreer, Mademoiselle, l'expression de nos sentiments distingues.
Lu et Approuve
Michel VINCENT
President Directeur General
<PAGE> 67
PRINCIPE DE REMUNERATION VARIABLE
=================================
1. - DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte uniquement :
----------
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2. - CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f(R/O) = 0 si (R/O) - 0,8
f(R/O) = 5R/O - 4 si 0,8 <R/O - 1
f(R/O) = R/O si 1 <R/O - 2
f(R/O) = 2 si R/O - 2
<PAGE> 68
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x f(R1/O1)
2eme trimestre A2 = SF x K x f(R2/O2) - A1
3eme trimestre A3 = SF x K x f(R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f(R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4; O2 = 0/2; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Mademoiselle Isabelle BLANZY est egal a : 0,05
<PAGE> 69
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 03 Novembre 1994
Mademoiselle Celine GAYRAUD (ac Breteau)
6 Villa de l'Industrie
93400 SAINT OUEN
OBJET : CONTRAT DE TRAVAIL
- ----- (Application de la Directive Europeenne du 14 Octobre 1991)
Mademoiselle,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe.
Vous etes embauchee a compter du 14 Novembre 1994.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employee en qualite de : Analyste Programmeur
Position repere : 2.2
Indice hierarchique : 310
<PAGE> 70
ARTICLE 2 - DUREE DE L'ENGAGEMENT/PERIODE D'ESSAI
- -------------------------------------------------
Le present contrat qui prend effet au 14 Novembre 1994 est conclu pour une
duree indeterminee.
Conformement a la Convention Collective citee a l'article 13, votre embauche ne
sera definitive qu'apres une periode d'essai d'un mois qui pourra etre
eventuellement prolongee d'une periode de meme duree.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez basee en nos bureaux de RUNGIS.
En outre, notre societe se reserve le droit de modifier votre point d'attache
en region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction d'analyste-programmeur consistera a developper des programmes
specifiques pour le compte de clients de GP2 utilisant le progiciel GPIC
(modifications de fonctions existantes ou realisation de fonctions nouvelles).
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 10.000 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 120.000 Francs.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifier des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
<PAGE> 71
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer exclusive-
ment votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont
vous prendriez connaissance a l'occasion de votre travail, de quelque nature
qu'elles soient, et tant pendant la duree du contrat qu'apres sa cessation, et
quelle qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
<PAGE> 72
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
ARTICLE 15 - VISITE MEDICALE
- ----------------------------
Vous aurez l'obligation de vous soumettre a la visite de la Medecine du travail,
votre contrat de travail ne devenant effectif qu'apres que vous ayez satisfait
a cette obligation.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat revetu de votre signature precedee de la mention "Lu et approuve",
chaque page devant etre paraphee.
Veuillez agreer, Mademoiselle, l'expression de nos sentiments distingues.
Lu et approuve
MICHEL VINCENT
President Directeur General
<PAGE> 73
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Monsieur Philippe BURON
1 Allee des Romantiques
92290 CHATENAY MALABRY
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeene du 14 Octobre 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout contrat signe precedemment.
Vous avez ete embauche le 01/10/91.
Votre anciennete au 01 Janvier 1994 est donc de 2 ans et 3 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE - STATUT
- ----------------
Vous etes employe en qualite de : Ingenieur principal
Position repere : 2.3
Indice hierarchique : 150
<PAGE> 74
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une
duree indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France et parfois a
l'Etranger.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Dans le cadre de votre fonction d'ingenieur principal, vous assurerez la
responsabilite, en tant que chef de projet, des projets d'informatisation qui
sont confies a notre societe. Des activites diverses devront etre prises en
charge : developpement de logiciels, installation, formation, assistance
technique.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 23.000 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 276.000 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 75
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recuelli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONAL
- --------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 76
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention
"Lu et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
Lu et approuve
Michel VINCENT
President Directeur General
<PAGE> 77
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations forfaitaires
ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f(R/O)
ou
f(R/O) = 0 si (R/O) - 0,8
f(R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f(R/O) = R/O si 1 <R/O - 2
f(R/O) = 2 si R/O - 2
<PAGE> 78
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suite :
1er trimestre A1 = SF x K x F(R1/O1)
2eme trimestre A2 = SF x K x f(R2/O2) - A1
3eme trimestre A3 = SF x K x F(R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f(R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Philippe BURON est egal a : 0,10
<PAGE> 79
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Monsieur Christian DEPINOY
5 Rue de Carnac
78180 MONTIGNY LE BRETONNEUX
OBJET : CONTRAT DE TRAVAIL
- ----- (Application de la Directive Europeenne du 14 October 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauche le 19/03/1984 par la societe SESA. Votre contrat de
travail a ete transfere de SESA a GP2 le 28/02/1985, dans le cadre d'une cession
partielle de fonds de commerce.
Votre anciennete au 01 Janvier 1994 est donc de 9 ans et 9,5 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Directeur General Adjoint
Position repere : 3.2
Indice hierarchique : 210
<PAGE> 80
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une
duree indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France et parfois a
l'Etranger.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction de Directeur General Adjoint vous amene a participer a la
direction de l'entreprise, en tant qu'adjoint direct du President Directeur
General.
Votre fonction operationnelle consiste a piloter la plupart des projets
informatiques confies a l'entreprise.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 30.000 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 360.000 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 81
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contract sans preavis
ni indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 82
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention
"Lu et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
du et approuve
Christen DEPINOY Michel VINCENT
President Directeur General
<PAGE> 83
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materials, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations forfaitaires
ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 84
3.- ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x f (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x f (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4; O2 = 0/2; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4.- VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Christian DEPINOY est egal a : 0,22
<PAGE> 85
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
CONTRAT DE TRAVAIL A DUREE INDETERMINEE
Entre les soussignes :
- - GENIE PRODUCTIQUE - GESTION DE PRODUCTION, ci-dessous denommee GP2,
- - et Mademoiselle Valerie DIVARE.
Il a ete convenu ce qui suit :
ARTICLE 1 - ENGAGEMENT
- ----------------------
GP2 engage Mademoiselle Valerie DIVARE a duree indeterminee, a compter du 13
Juin 1988. Ce contrat pourra cesser a l'initiative de l'une des parties,
conformement aux dispositions legales et conventionnelles.
ARTICLE 2 - PERIODE D'ESSAI
- ---------------------------
Le present contrat ne deviendra definitif qu'a l'issue d'une periode d'essai de
1 mois, prolongee des periodes de conges prises pendant cette periode d'essai.
Au cours de la periode d'essai, chacune des parties pourra resilier le present
contrat sans autre preavis que celui prevu a l'article 14 de la convention
collective SYNTEC-CICF qui regit les rapports des deux co-contractants.
<PAGE> 86
ARTICLE 3 - FONCTION ET CLASSEMENT
- ----------------------------------
Mademoiselle Valerie DIVARE exercera ses fonctions aux conditions ci-dessous
definies :
- - Fonction : Analyste-Programmeur
- - Lieu de travail : RUNGIS
- - Position repere : 2.1
- - Indice hierarchique : 275
ARTICLE 4 - REMUNERATION
- ------------------------
La remuneration actuelle de Mademoiselle Valerie DIVARE est fixee a 97.500
Francs verses en 13 mensualites.
La 13eme mensualite est versee en deux parties, le 30 Juin et le 30 Novembre, au
prorata du temps de presence apprecie au moment du versement.
Dans le cas ou l'horaire hebdomadaire pratique, actuellement fixe a 39h50
devrait etre modifie en plus ou en moins, de maniere importante et durable, le
traitement de Mademoiselle Valerie DIVARE, bien que forfaitaire, serait revise
en fonction de ce nouvel horaire.
ARTICLE 5 - EXCLUSIVITE DE SERVICES
- -----------------------------------
Mademoiselle Valerie DIVARE reservera l'exclusivite de ses services a GP2
pendant toute la duree du present contrat et s'interdit, en particulier,
d'exercer toute autre activite pour le compte d'un autre employeur, meme si ce
dernier n'est pas un concurrent de GP2.
ARTICLE 6 - SECRET PROFESSIONNEL
- --------------------------------
Mademoiselle Valerie DIVARE s'engage a ne communiquer a qui que ce soit les
procedes de fabrication et les methodes commerciales de GP2 qui seront portes a
sa connaissance et a n'en faire aucun emploi pour son compte personnel, ou pour
le compte d'une entreprise concurrente.
ARTICLE 7 - MATERIELS ET DOCUMENTS
- ----------------------------------
GP2 pourra etre amenee a confier a Mademoiselle Valerie DIVARE des echantillons,
produits, materiels, plans, fichiers, programmes et logiciels informatiques,
documents divers en depot ou pour en faire un usage determine. Mademoiselle
Valerie DIVARE s'interdit expressement d'en faire un usage autre que celui
autorise par l'exercice de ses fonctions.
<PAGE> 87
ARTICLE 8 - CLAUSE DE NON CONCURRENCE
- -------------------------------------
En cas de cessation du contrat de travail pour queque cause que ce soit,
Mademoiselle Valerie DIVARE s'interdit, a dater de cette cessation, d'entrer au
service d'une entreprise concurrente ou de s'interesser directement ou
indirectement a toute fabrication et a tout commerce pouvant concurrencer les
produits ou les articles fabriques ou commercialises par GP2.
La duree de cette interdiction de concurrence sera de 1 an, renouvelable une
fois.
Mademoiselle Valerie DIVARE percevra en contrepartie et pendant la duree de
cette obligation de non concurrence, une indemnite mensuelle speciale egale a
5/10eme de la moyenne mensuelle du traitement percu, ainsi que les avantages et
gratifications contractuels dont il aura beneficie au cours de ses douze
derniers mois de presence a GP2.
ARTICLE 9 - OBLIGATIONS
- -----------------------
Pendant la duree de son contrat, Mademoiselle Valerie DIVARE s'engage a
respecter les instructions qui lui seront donnees par GP2 et a se conformer aux
regles relatives au fonctionnement interne de la Societe.
Mademoiselle Valerie DIVARE devra informer GP2 de tout changement qui
interviendrait dans la situation qu'il a indiquee lors de son engagement.
Mademoiselle Valerie DIVARE declare n'etre formellement liee a la date d'entree
en fonction a aucune autre entreprise et etre libre de tout engagement, toute
fausse declaration etant de nature a mettre en jeu sa responsabilite.
Le present contrat est regi par la Convention Collective Nationale des Bureaux
d'Etudes Techniques, cabinets d'ingenieurs conseils, societes de conseil
SYNTEC-CICF.
Nous vous demandons de nous retourner ce contrat revetu de votre paraphe sur
chaque page et de votre signature precedee de la mention manuscrite "LU ET
APPROUVE".
Fait le 24 mai 1988.
Lu et approuve Le President Directeur General
Valerie DIVARE Michel VINCENT
- -------------- --------------
<PAGE> 88
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
AVENANT AU CONTRAT DE TRAVAIL DE
================================
Mademoiselle Valerie DIVARE
LES PRES LE ROY
77170 BRIE COMTE ROBERT
1.- OBJET
=====
L'objet de cet avenant est de definir ou de redefinir les regles definissant la
partie variable de la remuneration.
2.- DATE D'EFFET
============
Les dispositions du present avenant prennent effet au 01/01/93.
3.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de chiffre d'affaires de l'annee
R est le chiffre d'affaires realise
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
sous-traitance (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations forfaitaires
ou en regie,
- - la maintenance GPIC,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
<PAGE> 89
4.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <(R/O) - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 90
5.- ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimeste A1 = SF x K x f (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x f (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre.
R2 est le chiffre d'affaires realise au 1er semestre.
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
6.- VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Mademoiselle Valerie DIVARE est egal a : 0,05.
Fait a RUNGIS, le
Mademoiselle Valerie DIVARE Michel VINCENT
President Directeur General de la
SA GENIE PRODUCTIQUE -
GESTION DE PRODUCTION
<PAGE> 91
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Mademoiselle Christine DROCHON
49 Rue Daniel Fery
94800 VILLEJUIF
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Mademoiselle,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauchee le 26/11/1990
Votre anciennete au 01 Janvier 1994 est donc de 3 ans et 1 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employee en qualite de : Secretaire
Position repere : 2.1
Indice hierarchique : 275
<PAGE> 92
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez basee en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Vous exercerez la fonction de secretaire, sous la responsabilite de la
responsable du secretariat.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 8.800 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 105.600 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
<PAGE> 93
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer exclusive-
ment votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
<PAGE> 94
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Mademoiselle, l'expression de nos sentiments distingues.
Lu et approuve
MICHEL VINCENT
President Directeur General
<PAGE> 95
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance....).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
SI R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 96
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x f (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x f (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Mademoiselle Christine DROCHON est egal a : 0,02
<PAGE> 97
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Monsieur Lionel FLEURY
19 Avenue Saint Louis
94210 LA VARENNE SAINT HILAIRE
OBJET: CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauche le 01/04/1990.
Votre anciennete au 01 Janvier 1994 est donc de 3 ans et 9 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Responsable des Ventes France
Position repere : 2.2
Indice hierarchique : 130
<PAGE> 98
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une
duree indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France et parfois a
l'Etranger.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction de Responsable des Ventes France inclut la recherche de nouveaux
clients, l'elaboration de propositions commerciales et la negociation des
contrats.
Vous etes en outre membre du comite de direction de l'entreprise.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 20.000 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 240.000 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexa.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 99
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 100
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat ets regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention
"Lu et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
Lu et approuve Michel VINCENT
President Directeur General
<PAGE> 101
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f(R/O)
ou
f(R/O) = O si (R/O) - 0,8
f(R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f(R/O) = R/O si 1 <R/O - 2
f(R/O) = 2 si R/O - 2
<PAGE> 102
3.- ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x F(R1/O1)
2eme trimestre A2 = SF x K x f(R2/O2)-A1
3eme trimestre A3 = SF x K x F(R3/O3)-A1-A2
4eme trimestre A4 = SF x K x f(R/O)-A1-A2-A3
R1 est le chiffre d'affaires realise a 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4; O2 = 0/2; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4.- VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Lionel FLEURY est egal a : 0,25
<PAGE> 103
AVENANT AU CONTRAT DE TRAVAIL
=============================
entre GENIE PRODUCTIQUE - GESTION DE PRODUCTION
ci-apres denomme l'entreprise
et Lionel FLEURY
ci-apres denomme le salarie
PRINCIPE DE REMUNERATION VARIABLE
---------------------------------
APPLICABLE EN 1996
------------------
Avant-propos
- ------------
La remuneration variable appliquee anterieurement et basee sur la valeur ajoutee
facturee au cours de l'annee, est maintenue.
Le coefficient K pour 1996 est egal a 0,1.
Une commission sur ventes sera, en outre, versee en 1996, en appliquant les
regles suivantes :
1.- Definitions
-----------
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif d'entree de commande de l'annee (en valeur ajoutee)
R est le montant des commandes enregistrees (en valeur ajoutee)
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations
forfaitaires ou en regie,
concernant les commandes enregistrees par les clients affectes au salarie (voir
ci-apres).
<PAGE> 104
2.- AFFECTATION DES CLIENTS
=======================
Les clients suivants sont affectes au salarie :
AUBERT ET DUVAL
CERAMIQUES TECHNIQUES DESMARQUEST
CHERVIN
DEMO INJECTION
ELECTRONIC CIRCUITS
ERCUIS
ETHYPHARM
EURIDEP
FERRY CAPITAIN
FORGE FRANCE
FORGES DE LA LOIRE ET DE MILOURD
FORGES DES MARGERIDES
IDPA
LE CALIBRE
LHOTELLIER MONTRICHARD
LRS
LUCAS
PCM DOSYS
PCM POMPES
PELLERIN
PINET
SAE
SILEC
SNTF
SOFICAR
THOMSON TUBES ELECTRONIQUES
VALLOUREC
et tout nouveau client, sauf affaire particuliere traitee par la Direction
Generale :
EPB
GEC ALSTHOM SAPAG
...
<PAGE> 105
3.- CALCUL DE LA COMMISSION SUR VENTES
==================================
La commission est egale a 1,5 % de la valeur ajoutee a condition que le montant
R soit superieur ou egal a 2.000 KF.
Une commission supplementaire de 0,5 % du droit d'usage GPIC sera versee si le
montant des commandes de droit d'usage de GPIC est superieur ou egal a 1.000 KF.
4.- ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la commission sur ventes
est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = 1,5 % x R1 si R1 - 500 KF
2eme trimestre A2 = 1,5 % x R2 - A1 si R2 - 1.000 KF
3eme trimestre A3 = 1,5 % x R3 - A1 - A2 si R3 - 1.500 KF
4eme trimestre A4 = 1,5 % x R - A1 - A2 - A3 si R3 - 2.000 KF
R1 est le montant des commandes enregistrees au 1er trimestre
R2 est le montant des commandes enregistrees au 1er semestre
R3 est le montant des commandes enregistrees pendant les 9 premiers moi
de l'annee
Ai ne peut jamais etre negatif.
Le meme principe s'applique pour la commission supplementaire pour GPIC.
Fait a Rungis, le 11 Decembre 1995
Lionel FLEURY Michel VINCENT
------------- --------------
Responsables des Ventes President Directeur General
<PAGE> 106
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Monsieur Frederic MIGNOT
La Vigie - Appt B47
14 Rue des Annonciades
78250 MEULAN
Rungis, le 07 Juillet 1997
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe.
Vous etes embauche a compter du 07 Juillet 1997.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Ingenieur d'etudes
Position repere : 1.1
Indice hierarchique : 90
<PAGE> 107
ARTICLE 2 - DUREE DE L'ENGAGEMENT/PERIODE D'ESSAI
- -------------------------------------------------
Le present contrat qui prend effet au 07 Juillet 1997 est conclu pour une duree
indeterminee.
Conformement a la Convention Collective citee a l'article 13, votre embauche ne
sera definitive qu'apres une periode d'essai de trois mois qui pourra etre
eventuellement prolongee d'une periode de meme duree.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
Des deplacements ponctuels en France ou a l'etranger seront parfois necessaires.
ARTICLE 4 - FONCTION
- --------------------
Dans un premier temps, votre travail consistera a realiser des taches de
programmation dans le cadre de notre progiciel de gestion industrielle integree
GPIC, puis eventuellement d'autres progiciels de l'entreprise.
Votre fonction vous amenera ensuite a assurer diverses taches d'assistance
technique en nos locaux ou sur les sites de nos clients, evoluant ensuite vers
un role de chef de projet en gestion industrielle.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 14.500 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 174.000 Francs.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifier des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
<PAGE> 108
ARTICLES 8 - CONGES PAYES
- -------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des information confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
.../...
<PAGE> 109
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
ARTICLE 15 - VISITE MEDICALE
- ----------------------------
Vous aurez l'obligation de vous soumettre a la visite de la Medecine du travail,
votre contrat de travail ne devenant effectif qu'apres que vous ayez satisfait a
cette obligation.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat revetu de votre signature precedee de la mention "Lu et approuve",
chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
MICHEL VINCENT
President Directeur General
Lu et Approuve
FREDERIC MIGNOT
<PAGE> 110
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Monsieur Mohamed MHIRI
47 Rue de la Division Leclerc
92320 CHATILLON
OBJET : CONTRAT DE TRAVAIL
=====
(Application de la Directive Europeenne du 14 Octobre 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauche le 15/10/90.
Votre anciennete au 01 Janvier 1994 est donc de 3 ans et 2,5 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Ingenieur de projet
Position repere : 2.1
Indice hierarchique : 130
<PAGE> 111
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France et parfois a
l'Etranger.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Dans le cadre de votre fonction d'ingenieur de projet, vous asurerez la
responsabilite, en tant que chef de projet, des projets d'informatisation qui
sont confies a notre societe. Des activites diverses devront etre prises en
charge : developpement de logiciels, installation, formation, assistance
technique.
Vous pourrez egalement participer a des projets de grande ampleur en tant
qu'adjoint au chef de projet.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suite :
Vos appointements mensuels seront de 17.500 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 210.000 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 112
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer exclusive-
ment votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont
vous prendriez connaissance a l'occasion de votre travail, de quelque nature
qu'elles soient, et tant pendant la duree du contrat qu'apres sa cessation, et
quelle qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 113
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
Lu et approuve Michel VINCENT
--------------
President Directeur General
<PAGE> 114
PRINCIPE DE REMUNERATION VARIABLE
=================================
1. - DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2. - CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 SF x K x f (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 115
3.- ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x F (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x F (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4.- VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Mohamed MHIRI est egal a : 0,10
<PAGE> 116
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 01 Novembre 1994
Mademoiselle Isabelle SCHMITT
2 Impasse des Merisiers
91450 SOISY SUR SEINE
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Mademoiselle,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe.
Vous etes embauchee a compter du 01 Novembre 1994.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employee en qualite de : Analyste Programmeur
Position repere : 3.2 3
Indice hierarchique : 450 400
<PAGE> 117
ARTICLE 2 - DUREE DE L'ENGAGEMENT/PERIODE D'ESSAI
- -------------------------------------------------
Le present contrat qui prend effet au 01 Novembre 1994 est conclu pour une duree
indeterminee.
Conformement a la Convention Collective citee a l'article 13, votre embauche ne
sera definitive qu'apres une periode d'essai d'un mois qui pourra etre
eventuellement prolongee d'une periode de meme duree.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez basee en nos bureaux de RUNGIS.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Dans un premier temps, votre fonction consistera a assister l'ingenieur
responsable du service client dans le traitement des appels clients. Puis vous
assurerez la responsabilite de ce service en ayant comme mission de l'enrichir
par un aspect technico-commercial.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 13.500 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 162.000 Francs.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifier des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigeur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
<PAGE> 118
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
<PAGE> 119
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
ARTICLE 15 - VISITE MEDICALE
- ----------------------------
Vous aurez l'obligation de vous soumettre a la visite de la Medecine du
travail, votre contrat de travail ne devenant effectif qu'apres que vous ayez
satisfait a cette obligation.
Pour la bonne regle, vous voudrez bien-nous retourner un exemplaire du present
contrat revetu de votre signature precedee de la mention "Lu et approuve",
chaque page devant etre paraphee.
Veuillez agreer, Mademoiselle, l'expression de nos sentiments distingues.
Lu et approuve
Michel VINCENT
--------------
President Directeur General
<PAGE> 120
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
Rungis, le 10 Janvier 1994
Madame Francoise VINCENT
8 Allee des Myosotis
93110 ROSNY SOUS BOIS
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Madame,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe qui annulent et remplacent tout autre contrat signe precedemment.
Vous avez ete embauchee le 01/09/1977 par la societe SESA. Votre contrat de
travail a ete transfere de SESA a GP2 le 28/02/1985, dans le cadre d'une cession
partielle de fonds de commerce.
Votre anciennete au 01 Janvier 1994 est donc de 16 ans et 4 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employee en qualite de : Secretaire Generale
Position repere : Cadre 1.1
Indice hierarchique : 90
<PAGE> 121
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat qui a pris effet au 01 Janvier 1994 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez basee a votre domicile ou la societe mettra a votre disposition un
micro-ordinateur.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction de Secretaire Generale couvre les fonctions suivantes :
- - tenue de l'ensemble de la comptabilite generale - Declaration CA3 CA4
- - facturation
- - gestion de la paye, incluant toutes les declarations sociales.
Vous serez assistee dans votre tache par le cabinet d'expertise comptable CASH.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 15.200 Francs sur la base de 169 heures,
compte-tenu de votre horaire a mi-temps, cette remuneration est ramenee a 7.600
Francs sur la base de 84,5 heures par mois.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 122
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
Compte-tenu de votre travail a mi-temps, entre en vigueur le 01/10/1991, la
duree du travail est actuellement fixee a 19,5 heures par semaine sur cinq
jours, selon les horaires suivants :
9h30 a 12h00 et 13h30 a 15h30 Lundi - Mardi - Jeudi - Vendredi
9h30 a 11h00 Mercredi
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont
vous prendriez connaissance a l'occasion de votre travail, de quelque nature
qu'elles soient, et tant pendant la duree du contrat qu'apres sa cessation, et
quelle qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis
ni indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou
de ses dirigeants.
<PAGE> 123
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Madame, l'expression de nos sentiments distingues.
Lu et approuve
Michel VINCENT
--------------
President Directeur General
<PAGE> 124
PRINCIPE DE REMUNERATION VARIABLE
---------------------------------
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte UNIQUEMENT :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la valeur ajoutee liee a la vente de materiels, d'autres logiciels ou de
prestations sous-traitees (prix vente - prix achat),
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de GP2, qu'il s'agisse de prestations forfaitaires
ou en regie,
- - la maintenance CPIC et MULTIBADGE,
- - la valeur ajoutee liee a la maintenance UNIVERSE,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecriturer "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance, ...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 125
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x F (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x F (R3/O3) - A1 - A2
4eme trimestre A3 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Madame Francoise VINCENT est egal a : 0,22
<PAGE> 126
[GENIE PRODUCTIQUE LOGO]
[GENIE PRODUCTIQUE LETTERHEAD]
LISTE DU PERSONNEL DE LA SOCIETE SODRIV
=======================================
Jean-Marie FEY
Mathilde FEY
Laurent MASSON
<PAGE> 127
SODRIV
13 Rue de Pont des Halles
STRATEGIC ORLY 103
94526 RUNGIS CEDEX
Rungis, le 27 Septembre 1994
Monsieur Jean-Marie FEY
24 Rue Maurice Ravel
91470 FORGES LES BAINS
OBJET : CONTRAT DE TRAVAIL
===== (Application de la Directive Europeenne du 14 Octobre 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe a compter du 01 Octobre 1994.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Directeur Technique
Position : 3.2
Indice hierarchique : 210
<PAGE> 128
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat prend effet au 01 Octobre 1994 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
En outre, notre societe se reserve le droit de modifier votre point d'attache
en region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction de Directeur Technique vous amene a participer a la direction de
l'entreprise.
Votre fonction operationnelle consiste a assurer la responsabilite du
developpement et de la qualite des progiciels SODRIV.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 27.000 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 324.000 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans le limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 129
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 130
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
Andre VINCENT
-------------
Gerant
<PAGE> 131
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de SODRIV, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC et MULTIBADGE de deuxieme niveau,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
SI R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f (R/O) = 0 si (R/O) - 0,8
f (R/O) = 5 R/O - 4 si 0,8 <R/O - 1
f (R/O) = R/O si 1 <R/O - 2
f (R/O) = 2 si R/O - 2
<PAGE> 132
3.- ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x F (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x F (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4.- VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Jean-Marie FEY est egal a : 0,22
<PAGE> 133
SODRIV
13 Rue du Pont des Halles
STRATEGIC ORLY 103
94526 RUNGIS CEDEX
Rungis, le 27 September 1994
Madame Mathilde FEY
24 Rue Maurice Ravel
91470 FORGES LES BAINS
OBJET : CONTRAT DE TRAVAIL
=====
(Application de la Directive Europeenne du 14 Octobre 1991)
Madame,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe a compter du 01 October 1994.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employee en qualite de : Ingenieur de projet
Position repere : 2.2
Indice hierarchique : 130
<PAGE> 134
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat prend effet au 01 Octobre 1994 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez basee en nos bureaux de RUNGIS.
En outre, notre societe se reserve le droit de modifier votre point d'attache en
region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Vous participerez a la conception et a la realisation des developpements des
nouvelles versions du progiciel GPIC ou de tout autre progiciel developpe par la
SODRIV.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
Vos appointements mensuels seront de 15.600 Francs sur la base de 135 heures,
soit une remuneration annuelle fixe de 187.200 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICLE 6 - FRAIS DE DEPLACEMENT
- --------------------------------
Vous devez justifiez des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 135
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 31,2 heures par semaine sur quatre
jours (Lundi, Mardi, Jeudi, Vendredi).
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 136
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Madame, l'expression de nos sentiments distingues.
Andre VINCENT
-------------
Gerant
<PAGE> 137
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de SODRIV, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC et MULTIBADGE de deuxieme niveau,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f(R/O)
ou
f(R/O) = 0 si (R/O) - 0,8
f(R/O) = 5R/O - 4 si 0,8 <R/O - 1
f(R/O) = R/O si 1 <R/O - 2
f(R/O) = 2 si R/O - 2
<PAGE> 138
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x f (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x f (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Madame Mathilde FEY est egal a : 0,12
<PAGE> 139
SODRIV
13 Rue du Pont des Halles
STRATEGIC ORLY 103
94526 RUNGIS CEDEX
Rungis, le 28 Decembre 1995
Monsieur Laurent MASSON
1 Allee de Bievre
94120 FRESNES
OBJET : CONTRAT DE TRAVAIL
=====
(Application de la Directive Europeenne du 14 Octobre 1991)
Monsieur,
Nous vous confirmons ci-apres, les conditions de votre engagement dans notre
societe a compter du 01 Janvier 1996.
Vous avez ete embauche par la societe GP2 le 05 Octobre 1987.
Votre anciennete au 01 Janvier 1996 est donc de 8 ans et 3 mois.
Les conditions de votre collaboration sont les suivantes :
ARTICLE 1 - STATUT
- ------------------
Vous etes employe en qualite de : Ingenieur Principal
Position repere : 3.1
Indice hierarchique : 170
<PAGE> 140
ARTICLE 2 - DUREE DE L'ENGAGEMENT
- ---------------------------------
Le present contrat prend effet au 01 Janvier 1996 est conclu pour une duree
indeterminee.
ARTICLE 3 - LIEU DE TRAVAIL
- ---------------------------
Vous serez base en nos bureaux de RUNGIS.
Vos fonctions impliquent des deplacements frequents en France et parfois a
l'Etranger.
En outre, notre societe se reserve le droit de modifier votre point d'attache
en region parisienne si la marche des affaires le rendait necessaire.
ARTICLE 4 - FONCTION
- --------------------
Votre fonction d'Ingenieur Principal vous amenera a prendre la responsabilite,
en tant que chef de projet, de projets informatiques confies a l'entreprise.
Vous etes en outre membre du comite de direction de l'entreprise.
ARTICLE 5 - REMUNERATION
- ------------------------
Votre remuneration est fixee comme suit :
vos appointements mensuels seront de 26.520 Francs sur la base de 169 heures,
soit une remuneration annuelle fixe de 318.240 Francs.
A titre exceptionnel pour l'annee 1996, vos appointements mensuels seront
ramenes a 25.194 Francs.
Vous percevrez egalement une prime sur resultats, calculee trimestriellement
selon la formule definie en annexe.
ARTICE 6 - FRAIS DE DEPLACEMENT
- -------------------------------
Vous devez justifier des frais de mission que vous aurez engages dans le cadre
de vos fonctions. Ces frais vous seront rembourses dans la limite legale en
vigueur, dans le cadre des modalites propres a la societe, et sur accord
prealable de votre Direction.
<PAGE> 141
ARTICLE 7 - HORAIRES DE TRAVAIL
- -------------------------------
La duree du travail est actuellement fixee a 39 heures par semaine sur cinq
jours.
ARTICLE 8 - CONGES PAYES
- ------------------------
Vous aurez droit aux conges payes legaux, a prendre a des dates ayant recueilli
l'accord de votre hierarchie.
ARTICLE 9 - DUREE DES PREAVIS RECIPROQUES DE RUPTURES
- -----------------------------------------------------
La duree des preavis reciproques de rupture est celle prevue par la Convention
Collective citee a l'article 13.
ARTICLE 10 - EXCLUSIVITE
- ------------------------
Vous vous engagez, pendant la duree du present contrat, a consacrer
exclusivement votre activite a la societe.
ARTICLE 11 - SECRET PROFESSIONNEL
- ---------------------------------
Vous vous engagez a ne devoiler aucune des informations confidentielles
concernant la societe, la clientele ou les tiers en relation avec elle dont vous
prendriez connaissance a l'occasion de votre travail, de quelque nature qu'elles
soient, et tant pendant la duree du contrat qu'apres sa cessation, et quelle
qu'en soit la raison.
ARTICLE 12 - FAUTE GRAVE
- ------------------------
Notre societe se reserve le droit de resilier le present contrat sans preavis ni
indemnite, en cas de faute grave.
Une faute grave est, en particulier, l'infraction a une quelconque des clauses
du present contrat, ainsi qu'une atteinte a la reputation de notre societe ou de
ses dirigeants.
<PAGE> 142
ARTICLE 13 - CONVENTION COLLECTIVE
- ----------------------------------
Le present contrat est regi par la Convention Collective des Bureaux d'Etudes
Techniques, cabinets d'ingenieurs conseils, societe de conseil SYNTEC-CICF.
ARTICLE 14 - ATTRIBUTION DE JURIDICTION
- ---------------------------------------
Tous differends resultant de l'interpretation ou de l'execution du present
contrat seront soumis aux tribunaux du ressort du siege social de la societe.
Pour la bonne regle, vous voudrez bien nous retourner un exemplaire du present
contrat et de ses annexes revetu de votre signature precedee de la mention "Lu
et approuve", chaque page devant etre paraphee.
Veuillez agreer, Monsieur, l'expression de nos sentiments distingues.
MICHEL VINCENT
--------------
Gerant
<PAGE> 143
PRINCIPE DE REMUNERATION VARIABLE
=================================
1.- DEFINITIONS
===========
O = Objectif - R = Realisation
- ------------------------------
O est l'objectif de valeur ajoutee de l'annee
R est la valeur ajoutee realisee
Sont pris en compte :
- - les licences de progiciel GPIC et MULTIBADGE,
- - la vente de prestations (formation, assistance, developpements de logiciel)
assurees par du personnel de SODRIV, qu'il s'agisse de prestations
forfaitaires ou en regie,
- - la maintenance GPIC de deuxieme niveau,
concernant l'ensemble de la societe.
Les objectifs sont fixes en debut d'annee pour l'annee par le comite de
direction. Ils ne sont pas revises en cours d'annee, sauf dans le cas
d'augmentation significative des effectifs.
Le calcul integre les ecritures "d'inventaire" (stock, prestations de service
en-cours, produits constates d'avance,...).
2.- CALCUL DE LA PRIME
==================
SF est le salaire fixe mensuel.
K est le coefficient de part variable, propre a chaque salarie.
Si R = O, la prime annuelle PT est egale a 12 x SF x K.
Sinon PT = 12 x SF x K x f (R/O)
ou
f(R/O) = 0 si (R/O) - 0,8
f(R/O) = 5R/O-4 si 0,8 <R/O - 1
f(R/O) = R/O si 1 <R/O - 2
f(R/O) = 2 si R/O - 2
<PAGE> 144
3. - ACOMPTES VERSES
===============
A la fin de chaque trimestre, un calcul provisoire de la prime est effectue.
Au cours du trimestre suivant, il est verse mensuellement un acompte calcule
comme suit :
1er trimestre A1 = SF x K x F (R1/O1)
2eme trimestre A2 = SF x K x f (R2/O2) - A1
3eme trimestre A3 = SF x K x F (R3/O3) - A1 - A2
4eme trimestre A4 = SF x K x f (R/O) - A1 - A2 - A3
R1 est le chiffre d'affaires realise au 1er trimestre
R2 est le chiffre d'affaires realise au 1er semestre
R3 est le chiffre d'affaires realise pendant les 9 premiers mois de l'annee
O1 = 0/4 ; O2 = 0/2 ; O3 = 3/4 O
Ai ne peut jamais etre negatif.
4. - VALEUR DU COEFFICIENT K
=======================
Le coefficient K de Monsieur Laurent MASSON est egal a : 0,14
<PAGE> 145
CONTRAT D'INTERESSEMENT
=======================
Entre :
SOCIETE GENIE PRODUCTIQUE - GESTION DE PRODUCTION
Domiciliee : 13 Rue du Pont des Halles
STRATEGIC ORLY 103
94526 RUNGIS CEDEX
Represente par Michel VINCENT
Agissant en qualite de President Directeur General
Ci-apres denommee "l'entreprise"
et :
Le personnel de la societe nommement designe sur la list emargee
annexee au present accord representant au moins les 2/3 des salaries
de l'entreprise.
Ci-apres denomme "les salaries"
Il est arrete et convenu ce qui suit :
<PAGE> 146
ARTICLE 1 ; OBJET
- -----------------
Le present accord est conclu dans le cadre de l'ordonnance 86.1134 du 21 Octobre
1986 et du decret no 87.544 du 17 Juillet 1987 dans le but d'instituer un
interessement des salaries de l'entreprise lies aux resultats.
ARTICLE 2 : DUREE DE L'ACCORD ET DENONCIATION
- ---------------------------------------------
Le present accord prend effet a dater du jour de la ratification a la majorite
des deux tiers du personnel et s'applique pour une periode de 3 ans, soit pour
les exercices comptables : 95, 96, 97 sans possibilite de tacite reconduction a
l'echeance.
La denonciation vaudra pour l'exercice en cours si elle intervient avant la
premiere repartition de la prime, a compter de l'exercice suivant si elle
intervient apres cette date. La denonciation de l'accord sera constatee par le
proces-verbal de la seance de la commission au cours de laquelle elle a lieu.
L'accord ne peut etre denonce ou modifie que par l'ensemble des parties
signataires et dans la meme forme. Cette decision sera notifiee par lettre
recommandee a la Direction Departmentale du Travail et de l'Emploi.
Le present accord fait suite a l'accord d'interessement signe le 30/11/92 pour
les exercices 92, 93, 94.
ARTICLE 3 ; CARACTERE DE L'INTERESSEMENT
- ----------------------------------------
Conformement aux dispositions de l'article 4 de l'ordonnance no 86-1134 du 21
Octobre 1986, les sommes attribuees aux salaries en application du present
accord d'interessement n'ont pas caractere d'element de salaire pour
l'application de la legislation du travail et de la securite sociale et
n'entrent pas en compte pour l'application de la legislation relative au salaire
minimum de croissance.
Ces sommes ne peuvent se substituer a aucun des elements de salaire en vigueur
dans l'entreprise ou qui deviendraient obligatoires en vertu de regles legales
ou contractuelles.
Les salaries de l'entreprise ne pourront se prevaloir du present accord
d'interessement pour obtenir une remuneration complementaire sous quelque forme
que ce soit.
<PAGE> 147
ARTICLE 4 - BENEFICIAIRES
- -------------------------
Les dispositions du present contrat s'appliquent a l'ensemble du personnel avec
une presence minimum dans l'entreprise de 6 mois. La duree de presence doit
s'entendre comme l'appartenance juridique a la societe et donc a la seule
qualite de salarie de l'entreprise.
Sont beneficiaires egalement de l'interessement les personnes qui ont quitte
l'entreprise avant la cloture de l'exercice concerne alors qu'elles comptaient
6 mois et 1 jour d'anciennete a la date de leur depart de l'entreprise. Leur
quote-part d'interessement sera calculee au prorata de leur duree de presence
durant l'exercice.
ARTICLE 5 - REGLEMENTATION
- --------------------------
La prime d'interessement instituee par le present accord sera plafonne a 10% de
la masse salariale globale pour l'ensemble des personnels concernes.
ARTICLE 6 - MODALITES DE CALCUL
- -------------------------------
Cet accord d'interessement a pour objet d'interesser les salaries aux resultats
de l'entreprise. Le montant de l'interessement est determine en prenant comme
reference le benefice net de l'exercice apres impot sur les societes.
Il se calcule de la maniere suivante :
20 % du benefice net de l'exercice.
Le montant global de la prime d'interessement verse annuellement ne doit pas
depasser 10 % du total des salaries bruts verses aux personnels concernes.
ARTICLE 7 - MODALITES DE REPARTITION
- ------------------------------------
Le montant de la prime globale d'interessement a distribuer aupres des salaries
beneficiaires designes a l'article 3 sera repartie proportionnellement au
salarie brut percu par chacun au cours de l'exercice de reference.
Le salaire a prendre en compte est celui verse pour les jours consideres comme
du travail effectif tel que defini ci-dessous s'il est integralement maintenu
par l'entreprise ou, a defaut, un salaire fictif egal a celui qui aurait ete
verse au beneficiaire s'il avait travaille.
<PAGE> 148
les periodes de travail effectif sont les jours de presence, auxquelles
s'ajoutent toutes les periodes legalement ou conventionnellement assimilees a du
travail effectif et remunerees comme tel (conges payes, exercice de mandats
representatifs,...). Sont egalement assimiles a une periode de presence, les
conges de maternite ou d'adoption et les absences consecutives a un accident du
travail ou a une maladie professionnelle.
Les periodes d'absence non considerees comme une periode de travail effectif ne
donnent pas lieu a la repartition de l'interessement.
ARTICLE 8 : EPOQUE DE VERSEMENTS
- --------------------------------
La prime d'interessement suivant les criteres et les modalites definis aux
articles 6 et 7 sera mise en paiement dans le mois suivant l'approbation des
comptes sociaux par l'assemblee general annuelle des actionnaires.
Si un salarie beneficiaire a quitte l'entreprise avant que celle-ci ait ete en
mesure de calculer les droits dont il est titulaire, l'entreprise doit lui
demander l'adresse a laquelle il pourra etre vise de ses droits et lui demander
de l'informer de ses changements d'adresse eventuels.
Dans l'hypothese ou le salarie ne pourrait pas etre atteint a la derniere
adresse indiquee par lui, les sommes auxquelles il peut pretendre doivent etre
tenues a sa disposition par l'entreprise pendant une duree d'un an a compter de
la date limite de versement de l'interessement (dernier jour du septieme mois
suivant la cloture de l'exercice). Passe ce delai, ces sommes doivent etre
remises a la Caisse des depots et consignations, ou l'interesse peut les
reclamer jusqu'au terme de la prescription (trente ans). A l'expiration du delai
de prescription, ces sommes sont versees au Tresor Public.
ARTICLE 9 : PLAN D'EPARGNE ENTREPRISE
- -------------------------------------
Les sommes ainsi repartie aux salaries concernes seront mises a la disposition
des interesses qui auront la possibilite d'en disposer ou d'en verser tout ou
partie au Plan Epargne Entreprise dans les 15 jours suivant la date de
versement.
Dans ce cas, les sommes versees par chaque salarie ne sauraient exceder la
moitie du plafond annuel moyen de la securite sociale afin de beneficier de
l'exoneration d'impot.
ARTICLE 10 : MODALITES DE RECONDUCTION
- --------------------------------------
Au terme de la premiere periode d'application, les signataires pourront
reconduire le present accord pour une periode de trois ans.
Cette reconduction necessitera un nouveau depot a la Direction Departementale du
Travail et de l'Emploi du contrat renouvele.
<PAGE> 149
ARTICLE 12 : REVISION DU CONTRAT
- --------------------------------
Le present contrat pourra etre revise pendant sa periode d'application par
entente entre les parties au cas ou ses modalites de mise en oeuvre
n'apparaitraient plus conformes aux principes ayant servi de base a son
elaboration. Dans ce cas, un avenant sera conclu dans les memes conditions que
l'accord initial entre les parties et sera depose a la Direction Departemental
du Travail du lieu du siege social.
ARTICLE 12 : INFORMATION ET CONTROLE
- ------------------------------------
La commission (representee par le chef d'entreprise, un cadre et un salarie
ci-apres designes pour la periode de validite de l'accord d'interessement)
donnera communication des elements ayant servi a l'etablissement et a la
repartition de la prime d'interessement. Ces elements seront affiches pendant
1 mois a compter du versement de la prime sur les panneaux reserves a la
communication.
Les documents devront etre obligatoirement consultes au siege social de
l'entreprise et il ne pourra pas en etre delivre copie. Toute demande de
communication devra intervenir par lettre recommandee avec accuse de reception
adresse au responsable du personnel de l'entreprise ou aupres de la commission
designee par les salaries.
La consultation des documents pourra intervenir apres un delai de 3 jours
ouvres apres la date de reception de la lettre recommandee par l'entreprise.
Les documents seront au terme de ce delai a la disposition du demandeur pour
une duree egale. Passe le delai d'un un apres la date de cloture de l'exercice,
la societe ne sera plus tenue de fournir les documents demandes.
ARTICLE 13 : REGLEMENTS DES LITIGES
- -----------------------------------
Si un differend venait a survenir entre les parties quant a l'application du
present accord, celles-ci pourraient designer d'un commun accord un
conciliateur.
Au cas ou un desaccord ne pourrait se regler a l'amiable, il sera fait appel
aux juridictions competentes, dont depend le siege social de l'entreprise.
ARTICLE 14 : INFORMATION BIS
- ----------------------------
Un double du present accord sera remis a chaque membre du personnel concerne.
<PAGE> 150
ARTICLE 15 - DISPOSITION FINALE
- -------------------------------
Le present accord ainsi que ses avenants eventuels seront deposes a la
Direction Departementale du Travail et de l'Emploi par lettre recommandee avec
accuse de reception a l'initiative de la Direction.
Signatures Precedees de la Mention
- ----------------------------------
Rungis 28-11-95
FAIT A ...................................... LE ............................
Pour L'entreprise, le President Directeur General
- -----------------
Pour les Salaries
- -----------------
ANDRE Eric Fait a Rungis, le 07/12/95
BLANZY Isabelle Fait a Rungis, le 28/11/95
BURON Philippe Fait a Rungis, le 01/12/95
DEPINOY Christian Fait a Rungis, le 30/11/95
DIVARE Valerie Fait a Rungis, le 29/11/95
DROCHON Christine Fait a Rungis, le 29/11/95
FLEURY Lionel Fait a Rungis, le 30/11/95
GAYRAUD Celine Fait a Rungis, le 29/11/95
JOSSE Dominique
LEDROIT Christophe Fait a Rungis, le 29/11/95
MASSON Laurent Fait a Rungis, le 30/11/95
MHIRI Mohamad Fait a Rungis, le 29/11/95
SCHMITT Isabelle Fait a Rungis, le 29/11/95
VINCENT Francoise Fait a Rungis, le 30/11/95
<PAGE> 151
LISTE DES MEMBRES DE LA COMMISSION
==================================
Isabelle BLANZY
Eric ANDRE
<PAGE> 152
SCHEDULE 9.b.2
--------------
MICHEL VINCENT'S
EMPLOYMENT CONTRACT
<PAGE> 153
SCHEDULE "9.b(2)"
-----------------
CONTRAT DE TRAVAIL
ENTRE LES SOUSSIGNES
GENIE PRODUCTIQUE-GESTION DE PRODUCTION, societe anonyme dont le siege social
est 13 rue du Pont de Halles, 94150 Rungis, representee par M. Bruce Leith, son
president (ci-apres designee "GP2"),
D'UNE PART,
ET :
M. MICHEL VINCENT, demeurant 8, allee des Myosotis, 93110 Rosny-sous-Bois
(ci-apres designe "M. Vincent"),
D'AUTRE PART.
IL A ETE PREALABLEMENT EXPOSE CE QUI SUIT :
- -------------------------------------------
M. Vincent, ayant demissionne de toutes ses fonctions de mandataire social
dans GP2, desire acquerir la qualite de salarie de GP2.
GP2 est disposee a conclure un contrat de travail avec M. Vincent.
CECI EXPOSE, IL A ETE CONVENU CE QUI SUIT :
- -------------------------------------------
ARTICLE 1 - ENGAGEMENT
1.01 M. Vincent est engage en qualite de Directeur des Operations (hors
coefficient), avec effet au 28 juillet 1997, l'anciennete de M. Vincent dans
GP2 au regard du droit du travail etant reputee remonter a ladite date du 28
juillet 1997.
<PAGE> 154
2
1.02 Le present contrat sera regi par les clauses figurant ci-dessous et par
celles de la Convention Collective Nationale SYNTEC.
ARTICLE 2 - DUREE DU CONTRAT
Le present contrat est conclu pour une duree indeterminee a compter du 28
juillet 1997.
ARTICLE 3 - RESILIATION
3.1 Le present contrat se poursuivra pour une duree indeterminee, chacune des
parties ayant le droit d'y mettre fin, dans les conditions fixees a cet effet
par la loi, sous reserve de respecter, sauf cas de faute grave ou lourde, un
delai de preavis fixe a trois (3) mois.
3.2 En cas de resiliation du present contrat a l'initiative de GP2, non motivee
par une faute grave ou lourde de M. Vincent, ce dernier aura droit a une
indemnite representant douze (12) mois de sa remuneration calculee sur la base
de la moyenne de la remuneration fixe et de l'interessement prevus a
l'article 6 pour les six mois ayant precede l'envoi de la lettre de
licenciement.
Ladite indemnite sera payable en douze (12) paiements mensuels consecutifs
egaux et comprendra toute somme qui pourra etre due a M. Vincent a titre
d'indemnite compensatrice de preavis, mais ne comprendra pas les indemnites de
conges payes et les indemnites de licenciement fondees sur l'anciennete prevues
par la Convention Collective applicable.
En outre, au cas ou la resiliation du present contrat a l'initiative de GP2
interviendrait d'ici le 31 juillet 1999 sans etre motivee par une faute grave ou
lourde de M. Vincent, et dans ce cas seulement, ce dernier aura par ailleurs
droit a une indemnite egale au montant de sa remuneration moyenne mensuelle
calculee comme il est dit au premier paragraphe du present article 3.2.,
multiplie par le nombre de mois entiers restant a courir entre la date d'envoi
de la lettre de licenciement et le 31 juillet 1999.
ARTICLE 4 - FONCTIONS
M. Vincent aura pour mission d'assurer, sous la responsabilite du President de
GP2, la direction des projets clients et de tous les services associes, la
direction du personnel affecte par GP2 au developpement des produits du groupe,
ainsi que la direction administrative et financiere de GP2.
<PAGE> 155
3
ARTICLE 5 - LIEU DE TRAVAIL
M. Vincent exercera ses fonctions a Rungis, ou en tout autre lieu de la Region
Parisienne, mais pourra etre amene a se rendre en province ou a l'etranger pour
les besoins de son activite.
ARTICLE 6 - REMUNERATION
6.1. En contrepartie de son travail, M. Vincent percevra une remuneration
forfaitaire annuelle brute de quatre cent quatre vingt douze mille (492.000)
francs, payable en douze (12) mensualites egales, en fin de mois.
6.2. M. Vincent aura egalement droit a un interessement dont les modalites
seront fixees au debut de chaque annee, et pour la premiere fois d'ici le
____ ____ 1997, d'un commun accord entre les parties. Le montant de
l'interessement sera a la fois fonction du resultat et du chiffre d'affaires de
GP2 et des nouveaux clients acquis par GP2 au cours de la periode concernee,
etant expressement convenu que le montant total de l'interessement ne pourra
exceder 50 % de la remuneration forfaitaire annuelle visee a l'article 6.1
ci-dessus.
ARTICLE 7 - FRAIS PROFESSIONNELS
Les frais professionnels de M. Vincent lui seront rembourses sur presentation
de justificatifs, suivant les regles en vigueur dans la Societe.
ARTICLE 8 - PROTECTION SOCIALE
M. Vincent sera affilie a l'ensemble des organismes sociaux obligatoires et ce
dernier supportera la charge de la part salariale des contributions.
ARTICLE 9 - CONGES PAYES
9.1 M. Vincent beneficiera des conges payes dans les conditions prevues par la
legislation en vigueur et par les dispositions de la Convention Collective
applicable.
9.2 La prise de ces conges est determinee par accord entre le President de GP2
et M. Vincent compte tenu des necessites de l'activite.
<PAGE> 156
4
ARTICLE 10 - OBLIGATIONS PROFESSIONNELLES
10.1. Fidelite et secret professionnel
(a) M. Vincent ne pourra voir d'autre employeur que GP2.
(b) M. Vincent s'engage formellement a n'utiliser et a ne divulguer directement
ou indirectement a qui que ce soit, tant pendant l'execution de son contrat de
travail avec GP2 qu'apres l'expiration de celui-ci, pour quelque cause que ce
soit, aucune information confidentielle qu'il pourrait recueillir a l'occasion
de ses fonctions ou du fait de sa presence dans GP2 et portant notamment sur les
modes d'exploitation propres a l'organisation de GP2 et des societes du groupe
"Interactive Group, Inc."
10.2. Restitution
M. Vincent s'engage expressement a restituer ou ceder, le jour meme de la
cessation de ses fonctions dans GP2, pour quelque cause que ce soit, et ce sans
qu'il soit besoin d'une demarche ou d'une mise en demeure prealable de GP2, ou
anterieurement sur demande de GP2, tout support ecrit ou enregistre contenant
des informations confidentielles et notamment, sans que cette liste soit
limitative, tous documents, modeles, plans, statistiques, copies en sa
possession, ainsi que tous autres biens appartenant a GP2 qui pourraient etre en
sa possession.
EN FOI DE QUOI, le present contrat a ete signe en deux exemplaires originaux a
Paris le __ juillet 1997.
Genie Productique - Gestion de Production
- -------------------------- --------------------------
Bruce Leith Michel Vincent
President
<PAGE> 1
EXHIBIT 10.1
[LOGO]
Sanwa
Bank
CALIFORNIA
COMMERCIAL CREDIT AGREEMENT
This Commercial Credit Agreement ("Agreement") is made and entered into this
30th day of June, 1997 by and between SANWA BANK CALIFORNIA (the "Bank") and
INTERACTIVE GROUP, INC. (the "Borrower").
SECTION I
DEFINITIONS
1.01. CERTAIN DEFINED TERMS. Unless elsewhere defined in this Agreement the
following terms shall have the following meanings (such meanings to be generally
applicable to the singular and plural forms of the terms defined):
A. "ADVANCE" shall mean an advance to the Borrower under any line of
credit facility or similar facility provided for in Section II of this
Agreement which provides for draws by the Borrower against an established
credit line.
B. "BUSINESS DAY" shall mean a day, other than a Saturday or Sunday, on
which commercial banks are open for business in California.
C. "COLLATERAL" shall mean the property in which the Bank is granted a
security interest pursuant to provisions of the section herein entitled
"Collateral", together with any other personal or real property in which
the Bank may be granted a lien or security interest to secure payment of
the Obligations.
D. "COST OF FUNDS RATE" shall mean an interest rate which the Bank
determines, in its sole and absolute discretion, to be equal to the Bank's
cost of acquiring funds in an amount approximately equal to the amount of
the relevant Advance or amount and for a period of time approximately
equal to the relevant period of time during which the rate shall apply to
such amount. Such Cost of Funds Rate shall be adjusted for any and all
assessments, surcharges and reserve requirements pertaining to the
borrowing or purchase of such funds by the Bank.
E. "DEBT" shall mean all liabilities of the Borrower less Subordinated
Debt.
F. "EFFECTIVE TANGIBLE NET WORTH" shall mean the Borrower's stated net
worth plus Subordinated Debt but less all intangible assets of the
Borrower (i.e., goodwill, trademarks, patents, copyrights, organization
expense and similar intangible items).
G. "ENVIRONMENTAL CLAIMS" shall mean all claims, however asserted, by any
governmental authority or other person alleging potential liability or
responsibility for violation of any Environmental Law or for release or
injury to the environment or threat to public health, personal injury
(including sickness, disease or death), property damage, natural resources
damage, or otherwise alleging liability or responsibility for damages
(punitive or otherwise), cleanup, removal, remedial or response costs,
restitution, civil or criminal penalties, injunctive relief, or other type
of relief, resulting from or based upon (i) the presence, placement,
discharge, emission or release (including intentional and unintentional,
negligent and non-negligent, sudden or non-sudden, accidental or
non-accidental placement, spills, leaks, discharges, emissions or
releases) of any Hazardous Materials at, in, or from property owned,
operated or controlled by the Borrower, or (ii) any other circumstances
forming the basis of any violation, or alleged violation, of any
Environmental Law.
H. "ENVIRONMENTAL LAWS" shall mean all federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes,
together with all administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any
governmental authorities, in each case relating to environmental, health,
safety and land use matters; including the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 ("CERCLA"), the Clean Air
Act, the Federal Water Pollution Control Act of 1972, the Solid Waste
Disposal Act, the Federal Resource Conservation and Recovery Act, the
Toxic Substances Control Act, the Emergency Planning and Community
Right-to-Know Act, the California Hazardous Waste Control Law, the
California Solid Waste Management, Resource, Recovery and Recycling Act,
the California Water Code and the California Health and Safety Code.
I. "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended from time to time, including (unless the context otherwise
requires) any rules or regulations promulgated thereunder.
J. "EURODOLLAR RATE" shall mean an interest rate determined by the Bank's
Treasury Desk as being the arithmetic mean (rounded upwards, if necessary,
to the nearest whole multiple of one-sixteenth of one percent (1/16%)) at
which the Bank could purchase offshore U.S. dollar deposits in an amount
approximately equal to the relevant amount and for a period of time
approximately equal to the relevant interest period (adjusted for any and
all assessments, surcharges and reserve requirements).
K. "EVENT OF DEFAULT" shall have the meaning set forth in the section
herein entitled "Events of Default".
L. "HAZARDOUS MATERIALS" shall mean all those substances which are
regulated by, or which may form the basis of liability under any
Environmental Law, including all substances identified under any
Environmental Law as a pollutant, contaminant, hazardous waste, hazardous
constituent, special waste, hazardous substance, hazardous material, or
toxic substance, or petroleum or petroleum derived substance or waste.
M. "INDEBTEDNESS" shall mean, with respect to the Borrower, (i) all
indebtedness for borrowed money or for the deferred purchase price of
property or services in respect of which the Borrower is liable,
contingently or otherwise, as obligor, guarantor or otherwise, or in
respect of which the Borrower otherwise assures a creditor against loss
and (ii) obligations under leases which shall have been or should be, in
accordance with generally accepted accounting principles, reported as
capital leases in respect of which the Borrower is liable, contingently or
otherwise, or in respect of which the Borrower otherwise assures a
creditor against loss.
N. "OBLIGATIONS" shall mean all amounts owing by the Borrower to the Bank
pursuant to this Agreement including, but not limited to, the unpaid
principal amount of Advances.
O. "PERMITTED LIENS" shall mean: (i) liens and security interests securing
indebtedness owed by the Borrower to the Bank; (ii) liens for taxes,
assessments or similar charges either not yet due or being contested in
good faith, provided proper reserves are maintained therefor in accordance
with generally accepted accounting procedure; (iii) liens of materialmen,
mechanics, warehousemen, or carriers or other like liens arising in the
ordinary course of business and securing obligations which are not yet
delinquent; (iv) purchase money liens or purchase money security interests
upon or in any property acquired or held
(1)
<PAGE> 2
by the Borrower in the ordinary course of business to secure Indebtedness
outstanding on the date hereof or permitted to be incurred pursuant to
this Agreement; (v) liens and security interests which, as of the date
hereof, have been disclosed to and approved by the Bank in writing; and
(vi) those liens and security interests which in the aggregate constitute
an immaterial and insignificant monetary amount with respect to the net
value of the Borrower's assets.
P. "REFERENCE RATE" shall mean an index for a variable interest rate which
is quoted, published or announced from time to time by the Bank as its
reference rate and as to which loans may be made by the Bank at, below or
above such reference rate.
Q. "SUBORDINATED DEBT" shall mean such liabilities of the Borrower which
have been subordinated to those owed to the Bank in a manner acceptable to
the Bank.
1.02. ACCOUNTING TERMS. All references to financial statements, assets,
liabilities, and similar accounting items not specifically defined herein shall
mean such financial statements or such items prepared or determined in
accordance with generally accepted accounting principles consistently applied
and, except where otherwise specified, all financial data submitted pursuant to
this Agreement shall be prepared in accordance with such principles.
1.03. OTHER TERMS. Other terms not otherwise defined shall have the meanings
attributed to such terms in the California Uniform Commercial Code.
SECTION II
CREDIT FACILITIES
2.01. COMMITMENT TO LEND. Subject to the terms and conditions of this Agreement
and so long as no Event of Default occurs, the Bank agrees to extend to the
Borrower the credit accommodations that follow.
2.02. LINE OF CREDIT FACILITY. The Bank agrees to make loans and Advances to the
Borrower, upon the Borrower's request therefor made prior to the Expiration Date
(as defined below in this Section 2.02), up to a total principal amount from
time to time outstanding of not more than $3,000,000.00. Within the foregoing
limits, the Borrower may borrow, partially or wholly prepay, and reborrow under
this Line of Credit facility.
A. PURPOSE. Advances made under this Line of Credit shall be used for
working capital and general corporate purposes.
B. INTEREST RATE. Except as provided below in this Section 2.02, interest
shall accrue on the outstanding principal balance of Advances under this
Line of Credit at a variable rate equal to the Bank's Reference Rate, per
annum, as it may change from time to time. (Such rate is referred to in
this Section 2.02 as the "Variable Rate".) The Variable Rate shall be
adjusted concurrently with any change in the Reference Rate. Interest
shall be calculated on the basis of 360 days per year but charged on the
actual number of days elapsed.
C. PAYMENT OF INTEREST. The Borrower hereby promises and agrees to pay
interest monthly on the 15th day of each month, commencing on July 15,
1997.
D. REPAYMENT OF PRINCIPAL. Unless sooner due in accordance with the terms
of this Agreement, on July 15, 1998 the Borrower hereby promises and
agrees to pay to the Bank in full the aggregate unpaid principal balance
of all Advances then outstanding, together with all accrued and unpaid
interest thereon.
Any payment received by the Bank shall, at the Bank's option, first be
applied to pay any late fees or other fees then due and unpaid, and then
to interest then due and unpaid and the remainder thereof (if any) shall
be applied to reduce principal.
E. FIXED RATE ALTERNATIVE PRICING. In addition to Advances based upon the
Variable Rate ("Variable Rate Advances"), at the Borrower's election, the
Bank hereby agrees to make Advances to the Borrower under this Line of
Credit at a fixed rate ("Fixed Rate") which shall be approximately
equivalent to 2.0% per annum in excess of the Cost of Funds Rate or, at
the Borrower's option, 2.0% per annum in excess of the Eurodollar Rate.
Such Advances shall be in the minimum amount of $100,000.00 and in
$10,000.00 increments thereafter and for such period of time (each an
"Interest Period") as the Bank may quote and offer, provided that the
Interest Period shall be for a minimum of at least 30 days and not exceed
a maximum of 90 days and provided further that any Interest Period shall
not extend beyond the Expiration Date (as defined below) of this facility.
Advances based upon the Fixed Rate are hereinafter referred to as "Fixed
Rate Advances".
Interest on any Fixed Rate Advance shall be computed on the basis of 360
days per year but charged on the actual number of days elapsed.
The Borrower hereby promises and agrees to pay the Bank interest on any
Fixed Rate Advance with an Interest Period of 90 days or less on the last
day of the relevant Interest Period. The Borrower further promises and
agrees to pay the Bank interest on any Fixed Rate Advance with an Interest
Period in excess of 90 days on a quarterly basis (i.e., on the last day of
each 90-day period occurring in such Interest Period) and on the last day
of the relevant interest Period. If interest is not paid as and when it is
due, the amount of such unpaid interest shall bear interest until paid in
full, at a rate of interest equal to the Variable Rate.
(i) REPAYMENT OF FIXED RATE ADVANCES. Unless sooner due in
accordance with other terms of this Agreement, or unless adjusted at
the end of the relevant Interest Period as described below, the
Borrower hereby promises and agrees to pay the Bank the principal
amount of each Fixed Rate Advance, together with accrued and unpaid
interest thereon, on the last day of the Interest Period pertaining
to such Fixed Rate Advance.
(ii) NOTICE OF ELECTION TO ADJUST INTEREST RATE. Upon telephonic
notice which shall be received by the Bank at or before 2:00 p.m.
(California time) on a Business Day, the Borrower may elect:
(a) That interest on a Variable Rate Advance shall be adjusted
to accrue at the Fixed Rate; provided, however, that such
notice shall be received by the Bank no later than two
business days prior to the day (which shall be a business day)
on which the Borrower requests that interest be adjusted to
accrue at the Fixed Rate.
(b) That interest on a Fixed Rate Advance shall continue to
accrue at a newly quoted Fixed Rate or shall be adjusted to
commence to accrue at the Variable Rate; provided however,
that such notice shall be received by the Bank no later than
two business days prior to the last day of the Interest Period
pertaining to such Fixed Rate Advance. If the Bank shall not
have received notice as prescribed herein of the Borrower's
election that interest on any Fixed Rate Advance shall
continue to accrue at the Fixed Rate, the Borrower shall be
deemed to have elected that interest thereon shall be adjusted
to accrue at the Variable Rate upon the expiration of the
Interest Period pertaining to such Advance.
(iii) PROHIBITION AGAINST PREPAYMENT OF FIXED RATE ADVANCES.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE AGREEMENT, NO
PREPAYMENT SHALL BE MADE ON ANY FIXED RATE ADVANCE EXCEPT ON A DAY
WHICH IS THE LAST
(2)
<PAGE> 3
DAY OF THE INTEREST PERIOD PERTAINING THERETO. IF THE WHOLE OR ANY
PART OF ANY FIXED RATE ADVANCE IS PREPAID BY REASON OF ACCELERATION
OR OTHERWISE, THE BORROWER SHALL, UPON THE BANK'S REQUEST, PROMPTLY
PAY TO AND INDEMNIFY THE BANK FOR ALL COSTS AND ANY LOSS (INCLUDING
INTEREST) ACTUALLY INCURRED BY THE BANK AND ANY LOSS (INCLUDING LOSS
OF PROFIT RESULTING FROM THE RE-EMPLOYMENT OF FUNDS) SUSTAINED BY
THE BANK AS A CONSEQUENCE OF SUCH PREPAYMENT.
(iv) INDEMNIFICATION FOR FIXED RATE COSTS. During any period of time
in which interest on any Advance is accruing on the basis of a Fixed
Rate, the Borrower shall, upon the Bank's request promptly pay to
and reimburse the Bank for all costs incurred and payments made by
the Bank by reason of any future assessment, reserve, deposit or
similar requirements or any surcharge, tax or fee imposed upon the
Bank or as a result of the Bank's compliance with any directive or
requirement of any regulatory authority pertaining or relating to
funds used by the Bank in quoting and determining the Fixed Rate.
(v) INVOLUNTARY CONVERSION FROM FIXED RATE TO VARIABLE RATE. In the
event that the Bank shall at any time determine that the accrual of
interest on the basis of the Fixed Rate (a) is infeasible because
the Bank is unable to determine the Fixed Rate due to the
unavailability of U.S. dollar deposits, contracts or certificates of
deposit in an amount approximately equal to the amount of the
relevant Advance and for a period of time approximately equal to the
relevant Interest Period; or (b) is or has become unlawful or
infeasible by reason of the Bank's compliance with any new law,
rule, regulation, guideline or order, or any new interpretation of
any present law, rule, regulation, guideline or order, then the Bank
shall give telephonic notice thereof (confirmed in writing) to the
Borrower, in which event any Fixed Rate Advance shall be deemed to
be a Variable Rate Advance and interest shall thereupon immediately
accrue at the Variable Rate.
F. LATE FEE. If any regularly scheduled payment of principal and/or
interest (exclusive of the final payment upon maturity), or any portion
thereof, under this Line of Credit is not paid within ten (10) calendar
days after it is due, a late payment charge equal to five percent (5%) of
such past due payment may be assessed and shall be immediately payable.
G. MAKING LINE ADVANCES/NOTICE OF BORROWING. Each Advance made hereunder
shall be conclusively deemed to have been made at the request of and for
the benefit of the Borrower (i) when credited to any deposit account of
the Borrower maintained with the Bank or (ii) when paid in accordance with
the Borrower's written instructions. Subject to any other requirements
set forth in this Agreement, Advances shall be made by the Bank upon
telephonic or written notice received from the Borrower in form acceptable
to the Bank, which notice shall be received by the Bank at or before 2:00
p.m. (California time) on a Business Day. The Borrower may borrow under
the Line of Credit by requesting either:
(i) A VARIABLE RATE ADVANCE. A Variable Rate Advance may be made on
the Business Day notice is received by the Bank; provided however,
that if the Bank shall not have received notice at or before 2:00
p.m. (California time) on the day such Advance is requested to be
made, such Variable Rate Advance may be made, at the Bank's option,
on the next Business Day.
(ii) A FIXED RATE ADVANCE. The Borrower may elect that an Advance be
made as a Fixed Rate Advance by requesting the Bank to provide a
quote as to the rate which would apply for a designated Interest
Period and concurrently with receiving such quote, giving the Bank
irrevocable notice of the Borrower's acceptance of the rate quoted,
provided such notice shall be given to the Bank not later than 10:00
a.m. (California time) on a date (which shall be a Business Day) at
least two days prior to the first day of the requested Interest
Period. Any telephonic or oral quote or offer by the Bank of a Fixed
Rate for a given Interest Period may be confirmed in writing by the
Bank upon the election (as provided herein) of the Borrower to
accept such terms and such confirmation shall be deemed conclusive
as to the terms quoted and offered.
H. Facility Fees. The following fees for this facility shall be paid in
cash upon execution of this Agreement or prior to funding of this
facility: Loan Fees in the amount of $5,000.00.
I. EXPIRATION OF THE LINE OF CREDIT FACILITY. Unless earlier terminated in
accordance with the terms of this Agreement, the Bank's commitment to make
Advances to the Borrower hereunder shall automatically expire on July 15,
1998 (the "Expiration Date"), and the Bank shall be under no further
obligation to advance any monies thereafter.
J. LINE ACCOUNT. The Bank shall maintain on its books a record of account
in which the Bank shall make entries for each Advance and such other
debits and credits as shall be appropriate in connection with the Line of
Credit facility (the "Line Account). The Bank shall provide the Borrower
with a monthly statement of the Borrower's Line Account, which statement
shall be considered to be correct and conclusively binding on the Borrower
unless the Bank is notified by the Borrower to the contrary within thirty
(30) days after the Borrower's receipt of any such statement which is
deemed to be incorrect
K. AMOUNTS PAYABLE ON DEMAND. If the Borrower fails to pay on demand any
amount so payable under this Agreement, the Bank may, at its option and
without any obligation to do so and without waiving any default occasioned
by the Borrower's failure to pay such amount, create an Advance in an
amount equal to the amount so payable, which Advance shall thereafter bear
interest as provided under this Line of Credit facility.
In addition, the Borrower hereby authorizes the Bank, if and to the extent
payment owed to the Bank under this Line of Credit facility is not made
when due, to charge, from time to time, against any or all of the deposit
accounts maintained by the Borrower with the Bank any amount so due.
2.03. LETTER OF CREDIT FACILITY. The Bank agrees to issue commercial and standby
letters of credit (each a "Letter of Credit") on behalf of the Borrower;
provided however, that at no time shall the total face amount of all Letters of
Credit outstanding, less any partial draws paid by the Bank, exceed the sum of
$3,000,000.00; and provided further, that this Letter of Credit facility is a
sub-facility of the above $3,000,000.00 Line of Credit facility and at no time
shall the total amount outstanding under such facility together with the total
face amount of all Letters of Credit outstanding, less any partial draws paid by
the Bank, (plus any amounts outstanding under any other sub-facilities of the
above main facility) exceed the sum of $3,000,000.00.
A. ISSUANCE FEES, COSTS AND COMMISSIONS. Upon the Bank's request the
Borrower shall promptly pay to the Bank issuance fees and such other fees,
commissions, costs and any out-of-pocket expenses charged or incurred by
the Bank with respect to any Letter of Credit.
B. EXPIRATION OF FACILITY. The commitment by the Bank to issue Letters of
Credit shall, unless earlier terminated in accordance with the terms of
this Agreement, automatically terminate on July 15, 1998 and no Letter of
Credit shall expire on a date which is more than 365 days after such date.
C. LIMITATIONS ON MATTERS OF CREDIT. Each Letter of Credit shall, by its
terms, expire no more than 180 days after its date of issue. Further, each
Letter of Credit shall be in form and substance and in favor of
beneficiaries satisfactory to the Bank, provided that the Bank may refuse
to issue a Letter of Credit due to the nature of the transaction or its
terms or in connection with any transaction where the Bank, due to the
beneficiary or the nationality or residence
(3)
<PAGE> 4
of the beneficiary, would be prohibited by any applicable law, regulation
or order from issuing such Letter of Credit.
D. ISSUANCE OF LETTERS OF CREDIT. Prior to the issuance of each Letter of
Credit but in no event later than 10:00 a.m. (California time) on the day
such Letter of Credit is to be issued (which shall be a Business Day), the
Borrower shall deliver to the International Department of the Bank a duty
executed form of the Bank's standard form of application for issuance of a
letter of credit with proper insertions.
2.04. EQUIPMENT LINE OF CREDIT FACILITY. The Bank agrees to make loans and
Advances to the Borrower, upon the Borrower's request therefor made prior to the
Expiration Date (as defined below in this Section 2.04), up to a total principal
amount from time to time outstanding of not more than $500,000.00, provided that
the Borrower may receive no more than one Advance under this Equipment Line of
Credit during each of its fiscal quarters. This Equipment Line of Credit
facility is on a non-revolving basis and any amounts repaid under this facility
may not be reborrowed.
A. PURPOSE. Advances made under this Equipment Line of Credit shall be
used to refinance new fixed assets purchased over the past nine months
(primarily computer equipment and software).
B. INTEREST RATE. Except as provided below in this Section 2.04, interest
shall accrue on the outstanding principal balance of Advances under this
Equipment Line of Credit at a variable rate equal to the Bank's Reference
Rate, per annum, as it may change from time to time. (Such rate is
referred to in this Section 2.04 as the "Variable Rate".) The Variable
Rate shall be adjusted concurrently with any change in the Reference Rate.
Interest shall be calculated on the basis of 360 days per year but charged
on the actual number of days elapsed.
C. PAYMENT OF INTEREST. The Borrower hereby promises and agrees to pay
interest monthly on the 15th day of each month, commencing on July 15,
1997.
D. REPAYMENT OF PRINCIPAL. Unless sooner due in accordance with the terms
of this Agreement on July 15, 1998 the Borrower hereby promises and agrees
to pay to the Bank in full the aggregate unpaid principal balance of all
Advances then outstanding under this Equipment Line of Credit together
with all accrued and unpaid interest thereon.
Any payment received by the Bank shall, at the Bank's option, first be
applied to pay any late fees or other fees then due and unpaid, and then
to interest then due and unpaid and the remainder thereof (if any) shall
be applied to reduce principal.
E. FIXED RATE ALTERNATIVE PRICING. In addition to Advances based upon the
Variable Rate ("Variable Rate Advances"), at the Borrower's election, the
Bank hereby agrees to make Advances to the Borrower under this Equipment
Line of Credit at a fixed rate ("Fixed Rate") which shall be approximately
equivalent to 2.0% per annum in excess of the Cost of Funds Rate or, at
the Borrower's option, 2.0% per annum in excess of the Eurodollar Rate.
Such Advances shall be in the minimum amount of $100,000.00 and in
$10,000.00 increments thereafter and for such period of time (each an
"Interest Period") as the Bank may quote and offer, provided that the
Interest Period shall be for a minimum of at least 30 days and not exceed
a maximum of 90 days and provided further that any Interest Period shall
not extend beyond the Expiration Date (as defined below) of this facility.
Advances based upon the Fixed Rate are hereinafter referred to as "Fixed
Rate Advances".
Interest on any Fixed Rate Advance shall be computed on the basis of 360
days per year but charged on the actual number of days elapsed.
The Borrower hereby promises and agrees to pay the Bank interest on any
Fixed Rate Advance with an Interest Period of 90 days or less on the last
day of the relevant Interest Period. The Borrower further promises and
agrees to pay the Bank interest on any Fixed Rate Advance with an Interest
Period in excess of 90 days on a quarterly basis (i.e., on the last day of
each 90-day period occurring in such Interest Period) and on the last day
of the relevant Interest Period. If interest is not paid as and when it is
due, the amount of such unpaid interest shall bear interest until paid in
full, at a rate of interest equal to the Variable Rate.
(i) REPAYMENT OF FIXED RATE ADVANCES. Unless sooner due in
accordance with other terms of this Agreement or unless adjusted at
the end of the relevant Interest Period as described below, the
Borrower hereby promises and agrees to pay the Bank the principal
amount of each Fixed Rate Advance, together with accrued and unpaid
interest thereon, on the last day of the Interest Period pertaining
to such Fixed Rate Advance.
(ii) NOTICE OF ELECTION TO ADJUST INTEREST RATE. Upon telephonic
notice which shall be received by the Bank at or before 2:00 p.m.
(California time) on a Business Day, the Borrower may elect:
(a) That interest on a Variable Rate Advance shall be adjusted
to accrue at the Fixed Rate; provided, however, that such
notice shall be received by the Bank no later than two
business days prior to the day (which shall be a business day)
on which the Borrower requests that interest be adjusted to
accrue at the Fixed Rate.
(b) That interest on a Fixed Rate Advance shall continue to
accrue at a newly quoted Fixed Rate or shall be adjusted to
commence to accrue at the Variable Rate; provided however,
that such notice shall be received by the Bank no later than
two business days prior to the last day of the Interest Period
pertaining to such Fixed Rate Advance. If the Bank shall not
have received notice as prescribed herein of the Borrower's
election that interest on any Fixed Rate Advance shall
continue to accrue at the Fixed Rate, the Borrower shall be
deemed to have elected that interest thereon shall be adjusted
to accrue at the Variable Rate upon the expiration of the
Interest Period pertaining to such Advance.
(iii) PROHIBITION AGAINST PREPAYMENT OF FIXED RATE ADVANCES.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE AGREEMENT, NO
PREPAYMENT SHALL BE MADE ON ANY FIXED RATE ADVANCE EXCEPT ON A DAY
WHICH IS THE LAST DAY OF THE INTEREST PERIOD PERTAINING THERETO. IF
THE WHOLE OR ANY PART OF ANY FIXED RATE ADVANCE IS PREPAID BY REASON
OF ACCELERATION OR OTHERWISE, THE BORROWER SHALL, UPON THE BANK'S
REQUEST, PROMPTLY PAY TO AND INDEMNIFY THE BANK FOR ALL COSTS AND
ANY LOSS (INCLUDING INTEREST) ACTUALLY INCURRED BY THE BANK AND ANY
LOSS (INCLUDING LOSS OF PROFIT RESULTING FROM THE RE-EMPLOYMENT OF
FUNDS) SUSTAINED BY THE BANK AS A CONSEQUENCE OF SUCH PREPAYMENT.
(iv) INDEMNIFICATION FOR FIXED RATE COSTS. During any period of
time in which interest on any Advance is accruing on the basis of a
Fixed Rate, the Borrower shall, upon the Bank's request promptly
pay to and reimburse the Bank for all costs incurred and payments
made by the Bank by reason of any future assessment reserve,
deposit or similar requirements or any surcharge, tax or fee
imposed upon the Bank or as a result of the Bank's compliance with
any directive or requirement of any regulatory authority pertaining
or relating to funds used by the Bank in quoting and determining
the Fixed Rate.
(4)
<PAGE> 5
(v) INVOLUNTARY CONVERSION FROM FIXED RATE TO VARIABLE RATE. In the
event that the Bank shall at any time determine that the accrual of
interest on the basis of the Fixed Rate (a) is infeasible because
the Bank is unable to determine the Fixed Rate due to the
unavailability of U.S. dollar deposits, contracts or certificates of
deposit in an amount approximately equal to the amount of the
relevant Advance and for a period of time approximately equal to the
relevant Interest Period; or (b) is or has become unlawful or
infeasible by reason of the Bank's compliance with any new law,
rule, regulation, guideline or order, or any new interpretation of
any present law, rule, regulation, guideline or order, then the Bank
shall give telephonic notice thereof (confirmed in writing) to the
Borrower, in which event any Fixed Rate Advance shall be deemed to
be a Variable Rate Advance and interest shall thereupon immediately
accrue at the Variable Rate.
F. LATE FEE. If any regularly scheduled payment of principal and/or
interest (exclusive of the final payment upon maturity), or any portion
thereof, under this Line of Credit is not paid within ten (10) calendar
days after it is due, a late payment charge equal to five percent (5%) of
such past due payment may be assessed and shall be immediately payable.
G. MAKING LINE ADVANCES/NOTICE OF BORROWING. Each Advance made hereunder
shall be conclusively deemed to have been made at the request of and for
the benefit of the Borrower (i) when credited to any deposit account of
the Borrower maintained with the Bank or (ii) when paid in accordance with
the Borrower's written instructions. Subject to any other requirements set
forth in this Agreement, Advances shall be made by the Bank upon
telephonic or written notice received from the Borrower in form acceptable
to the Bank, which notice shall be received by the Bank at or before 2:00
p.m. (California time) on a Business Day. The Borrower may borrow under
the Equipment Line of Credit by requesting either:
(i) A VARIABLE RATE ADVANCE. A Variable Rate Advance may be made on
the Business Day notice is received by the Bank; provided however,
that if the Bank shall not have received notice at or before 2:00
p.m. (California time) on the day such Advance is requested to be
made, such Variable Rate Advance may be made, at the Bank's option,
on the next Business Day.
(ii) A FIXED RATE ADVANCE. The Borrower may elect that an Advance be
made as a Fixed Rate Advance by requesting the Bank to provide a
quote as to the rate which would apply for a designated Interest
Period and concurrently with receiving such quote, giving the Bank
irrevocable notice of the Borrower's acceptance of the rate quoted,
provided such notice shall be given to the Bank not later than 10:00
a.m. (California time) on a date (which shall be a Business Day) at
least two days prior to the first day of the requested Interest
Period. Any telephonic or oral quote or offer by the Bank of a Fixed
Rate for a given Interest Period may be confirmed in writing by the
Bank upon the election (as provided herein) of the Borrower to
accept such terms and such confirmation shall be deemed conclusive
as to the terms quoted and offered.
H. FACILITY FEES. The following fees for this facility shall be paid in
cash upon execution of this Agreement or prior to funding of this
facility: Loan Fees in the amount of $2,500.00.
I. EXPIRATION OF THE EQUIPMENT LINE OF CREDIT FACILITY. Unless earlier
terminated in accordance with the terms of this Agreement the Bank's
commitment to make Advances to the Borrower hereunder shall automatically
expire on July 15, 1998 (the "Expiration Date"), and the Bank shall be
under no further obligation to advance any monies thereafter.
J. LINE ACCOUNT. The Bank shall maintain on its books a record of account
in which the Bank shall make entries for each Advance and such other
debits and credits as shall be appropriate in connection with the
Equipment Line of Credit facility (the "Line Account"). The Bank shall
provide the Borrower with a monthly statement of the Borrower's Line
Account, which statement shall be considered to be correct and
conclusively binding on the Borrower unless the Bank is notified by the
Borrower to the contrary within thirty (30) days after the Borrower's
receipt of any such statement which is deemed to be incorrect.
K. AMOUNTS PAYABLE ON DEMAND. If the Borrower fails to pay on demand any
amount so payable under this Agreement, the Bank may, at its option and
without any obligation to do so and without waiving any default occasioned
by the Borrower's failure to pay such amount, create an Advance in an
amount equal to the amount so payable, which Advance shall thereafter bear
interest as provided under this Equipment Line of Credit facility.
In addition, the Borrower hereby authorizes the Bank, if and to the extent
payment owed to the Bank under this Equipment Line of Credit facility is
not made when due, to charge, from time to time, against any or all of the
deposit accounts maintained by the Borrower with the Bank any amount so
due.
L. CONVERSION TO TERM LOAN. It is hereby agreed that the Borrower may, by
giving written notice to the Bank at least one (1) day prior to January
15, 1998 and/or July 15, 1998, convert the principal balance outstanding
under the Equipment Line of Credit as of such dates to be payable on a
term loan basis. The term loan (the "Converted Term Loan") shall be in the
amount of such outstanding principal balance on the relevant conversion
date and shall be evidenced by a promissory note or credit agreement (the
"Term Agreement") containing the following payment terms: At the
Borrower's election made prior to the conversion, interest shall accrue on
the outstanding balance under the converted term note at one of the
following rates: (i) A variable rate equal to the Bank's Reference Rate,
as it may change from time to time; or (ii) a fixed rate to be quoted and
offered by the Bank which shall be approximately equal to 2.0% per annum
in excess of the Cost of Funds Rate or, at the Borrower's option, 2.0% per
annum in excess of the Eurodollar Rate. If the variable rate is selected,
the interest rate shall be adjusted concurrently with any change in the
Reference Rate. The Borrower may elect the fixed rate option only for a
converted term note in the minimum amount of $100,000.00. Repayment under
the converted term note shall be made in 48 monthly installments of
principal plus interest if a variable rate is elected or principal and
interest if the fixed rate option is elected with the exact amount and
dates for such payments to be determined upon the issuance of the
converted term note. Accrued and unpaid interest under the Equipment Line
of Credit shall be paid to the Bank concurrently with the Borrower's
execution of the Term Agreement. Interest shall accrue and principal and
interest shall be paid in accordance with the terms and provisions of the
Term Agreement.
SECTION III
COLLATERAL
3.01. GRANT OF SECURITY INTEREST. To secure payment and performance of all of
the Borrower's Obligations under this Agreement and the performance of all the
terms, covenants and agreements contained in this Agreement (and any and all
modifications, extensions and renewals of the Agreement) and in any other
document instrument or agreement evidencing or related to the Obligations or the
Collateral, and also to secure all other liabilities, loans, guarantees,
covenants and duties owed by the Borrower to the Bank, whether or not evidenced
by this or by any other agreement, absolute or contingent due or to become due,
now existing or hereafter and howsoever created, the Borrower hereby grants to
the Bank a security interest in and to all of the following property:
(5)
<PAGE> 6
A. EQUIPMENT. All goods and equipment ("Equipment") now owned or hereafter
acquired by the Borrower or in which the Borrower now has or may hereafter
acquire any interest including, but not limited to, all machinery,
furniture, furnishings, fixtures, tools, supplies and motor vehicles of
every kind and description and all additions, accessions, improvements,
replacements and substitutions thereto and thereof.
B. INVENTORY. All inventory ("Inventory") now owned or hereafter acquired
by the Borrower including, but not limited to, all raw materials, work in
process, finished goods, merchandise, parts and supplies of every kind and
description, including inventory temporarily out of the Borrower's custody
or possession, together with all returns on accounts.
C. ACCOUNTS AND CONTRACT RIGHTS. All accounts and contract rights now
owned or hereafter created or acquired by the Borrower, including but not
limited to, all receivables and all rights and benefits due to the
Borrower under any contract or agreement.
D. GENERAL INTANGIBLES. All general intangibles now owned or hereafter
created or acquired by the Borrower, including but not limited to,
goodwill, trademarks, trade styles, trade names, patents, patent
applications, software, customer lists and business records.
E. CHATTEL PAPER AND DOCUMENTS. All documents, instruments and chattel
paper now owned or hereafter acquired by the Borrower.
F. MONIES AND OTHER PROPERTY IN POSSESSION. All monies, and property of
the Borrower now or hereafter in the possession of the Bank or the Bank's
agents, or any one of them, including, but not limited to, all deposit
accounts, certificates of deposit, stocks, bonds, indentures, warrants,
options and other negotiable and non-negotiable securities and
instruments, together with all stock rights, rights to subscribe,
liquidating dividends, cash dividends, payments, dividends paid in stock,
new securities or other property to which the Borrower may become entitled
to receive on account of such property.
3.02. CONTINUING LIEN & PROCEEDS. The Bank's security interest in the Collateral
shall be a continuing lien and shall include all proceeds and products of the
Collateral including, but not limited to, the proceeds of any insurance thereon
as well as all accounts, contract rights, documents, instruments and chattel
paper resulting from the sale or disposition of any Equipment.
3.03. EXCLUSION OF CONSUMER DEBT. The Obligations and performance secured hereby
shall not include any indebtedness of the Borrower incurred for personal, family
or household purposes except to the extent any disclosure required under any
consumer protection law (including but not limited to the Truth in Lending Act)
or any regulation thereto, as now existing or hereafter amended, is or has been
given.
SECTION IV
CONDITIONS PRECEDENT
4.01. CONDITIONS PRECEDENT TO THE INITIAL EXTENSION OF CREDIT AND/OR FIRST
ADVANCE. The obligation of the Bank to make the initial extension of credit
and/or the first Advance hereunder is subject to the conditions precedent that
the Bank shall have received before the date of such extension of credit and/or
the first Advance all of the following, in form and substance satisfactory to
the Bank:
A. AUTHORITY TO BORROW. Evidence relating to the duly given approval and
authorization of the execution, delivery and performance of this
Agreement, all other documents, instruments and agreements required under
this Agreement and all other actions to be taken by the Borrower hereunder
or thereunder.
B. LOAN FEES. Evidence that any required loan fees and expenses as set
forth above with respect to each credit facility have been paid or
provided for by the Borrower.
C. AUDIT. The opportunity to conduct an audit of the Borrower's books,
records and operations and the Bank shall be satisfied as to the condition
thereof.
D. MISCELLANEOUS DOCUMENTS. Such other documents, instruments, agreements
and opinions as are necessary, or as the Bank may reasonably require, to
consummate the transactions contemplated under this Agreement, all fully
executed.
4.02. CONDITIONS PRECEDENT TO ALL EXTENSIONS OF CREDIT AND/OR ADVANCES. The
obligation of the Bank to make any extensions of credit and/or each Advance to
or on account of the Borrower (including the initial extension of credit and/or
the first Advance) shall be subject to the further conditions precedent that, as
of the date of each extension of credit or Advance and after the making of such
extension of credit or Advance:
A. REPRESENTATIONS AND WARRANTIES. The representations and warranties set
forth in the Section entitled "Representations and Warranties" herein and
in any other document, instrument, agreement or certificate delivered to
the Bank hereunder are true and correct.
B. COLLATERAL. The security interest in the Collateral has been duly
authorized, created and perfected with fast priority and is in full force
and effect and the Bank has been provided with satisfactory evidence of
all filings necessary to establish such perfection and priority.
C. EVENT OF DEFAULT. No event has occurred and is continuing which
constitutes, or, with the lapse of time or giving of notice or both, would
constitute an Event of Default.
D. SUBSEQUENT APPROVALS, ETC. The Bank shall have received such
supplemental approvals, opinions or documents as the Bank may reasonably
request.
4.03. REAFFIRMATION OF STATEMENTS. For the purposes hereof, the Borrower's
acceptance of the proceeds of any extension of credit and the Borrower's
execution of any document or instrument evidencing or creating any Obligation
hereunder shall each be deemed to constitute the Borrower's representation and
warranty that the statements set forth above in this Section are true and
correct
SECTION V
REPRESENTATIONS AND WARRANTIES
The Borrower hereby makes the following representations and warranties to the
Bank, which representations and warranties are continuing:
5.01. STATUS. The Borrower is a corporation duly organized and validly existing
under the laws of the State of Delaware and is properly licensed, qualified to
do business and in good standing in, and, where necessary to maintain the
Borrower's rights and privileges, has complied with the fictitious name statute
of every jurisdiction in which the Borrower is doing business.
5.02. AUTHORITY. The execution, delivery and performance by the Borrower of this
Agreement and any instrument, document or agreement required hereunder have been
duly authorized and do not and will not: (i) violate any provision of any law,
rule, regulation, writ, judgment or injunction presently in effect affecting
(6)
<PAGE> 7
the Borrower; (ii) require any consent or approval of the stockholders of the
Borrower or violate any provision of the articles of incorporation or by-laws of
the Borrower; or (iii) result in a breach of or constitute a default under any
material agreement to which the Borrower is a party or by which it or its
properties may be bound or affected.
5.03. LEGAL EFFECT. This Agreement constitutes, and any document, instrument or
agreement required hereunder when delivered will constitute, legal, valid and
binding obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms.
5.04. FICTITIOUS TRADE STYLES. The Borrower currently uses no fictitious trade
styles in connection with its business operations. The Borrower shall notify the
Bank within thirty (30) days of the use of any fictitious trade style at any
future date, indicating the trade style and state(s) of its use.
5.05. FINANCIAL STATEMENTS. All financial statements, information and other data
which may have been and which may hereafter be submitted by the Borrower to the
Bank are true, accurate and correct and have been and will be prepared in
accordance with generally accepted accounting principles consistently applied
and accurately represent the Borrower's financial condition and, as applicable,
the other information disclosed therein. Since the most recent submission of any
such financial statement information or other data to the Bank, the Borrower
represents and warrants that no material adverse change in the Borrower's
financial condition or operations has occurred which has not been fully
disclosed to the Bank in writing.
5.06. LITIGATION. Except as have been disclosed to the Bank in writing, there
are no actions, suits or proceedings pending or, to the knowledge of the
Borrower, threatened against or affecting the Borrower or the Borrower's
properties before any court or administrative agency which, if determined
adversely to the Borrower, would have a material adverse effect on the
Borrower's financial condition, operations or the Collateral.
5.07. TITLE TO ASSETS. The Borrower has good and marketable title to all of its
assets (including, but not limited to, the Collateral) and the same are not
subject to any security interest encumbrance, lien or claim of any third person
except for Permitted Liens.
5.08. ERISA. If the Borrower has a pension, profit sharing or retirement plan
subject to ERISA, such plan has been and will continue to be funded in
accordance with its terms and otherwise complies with and continues to comply
with the requirements of ERISA.
5.09. TAXES. The Borrower has filed all tax returns required to be filed and
paid all taxes shown thereon to be due, including interest and penalties, other
than taxes which are currently payable without penalty or interest or those
which are being duly contested in good faith.
5.10. ENVIRONMENTAL COMPLIANCE. The operations of the Borrower comply, and
during the term of this Agreement will at all times comply, in all respects with
all Environmental Laws; the Borrower has obtained licenses, permits,
authorizations and registrations required under any Environmental Law
("Environmental Permits") and necessary for its ordinary operations, all such
Environmental Permits are in good standing, and the Borrower is in compliance
with all material terms and conditions of such Environmental Permits; neither
the Borrower nor any of its present properties or operations are subject to any
outstanding written order from or agreement with any governmental authority nor
subject to any judicial or docketed administrative proceeding, respecting any
Environmental Law, Environmental Claim or Hazardous Material; there are no
Hazardous Materials or other conditions or circumstances existing, or arising
from operations prior to the date of this Agreement, with respect to any
property of the Borrower that would reasonably be expected to give rise to
Environmental Claims; provided however, that with respect to property leased
from an unrelated third party, the foregoing representation is made to the best
knowledge of the Borrower. In addition, (i) the Borrower does not have or
maintain any underground storage tanks which are not properly registered or
permitted under applicable Environmental Laws or which are leaking or disposing
of Hazardous Materials off-site, and (ii) the Borrower has notified all of its
employees of the existence, if any, of any health hazard arising from the
conditions of their employment and have met all notification requirements under
Title III of CERCLA and all other Environmental Laws.
SECTION VI
COVENANTS
The Borrower covenants and agrees that during the term of this Agreement, and so
long thereafter as the Borrower is indebted to the Bank under this Agreement the
Borrower shall, unless the Bank otherwise consents in writing:
6.01. PRESERVATION OF EXISTENCE; COMPLIANCE WITH APPLICABLE LAWS. Maintain and
preserve its existence and all rights and privileges now enjoyed; not liquidate
or dissolve, merge or consolidate with or into, or acquire any other business
organization; and conduct its business in accordance with all applicable laws,
rules and regulations.
6.02. MAINTENANCE OF INSURANCE. Maintain insurance in such amounts and covering
such risks as is usually carried by companies engaged in similar businesses and
owning similar properties in the same general areas in which the Borrower
operates and maintain such other insurance and coverages as may be required by
the Bank. All such insurance shall be in form and amount and with companies
satisfactory to the Bank. With respect to insurance covering properties in which
the Bank maintains a security interest or lien, such insurance shall be in an
amount not less than the full replacement value thereof, at the Bank's request
shall name the Bank as loss payee pursuant to a loss payable endorsement
satisfactory to the Bank and shall not be altered or canceled except upon ten
(10) days' prior written notice to the Bank. Upon the Bank's request, the
Borrower shall furnish the Bank with the original policy or binder of all such
insurance.
6.03. MAINTENANCE OF COLLATERAL AND OTHER PROPERTIES. Except for Permitted
Liens, the Borrower shall keep and maintain the Collateral free and clear of all
levies, liens, encumbrances and security interests (including but not limited
to, any lien of attachment, judgement or execution) and defend the Collateral
against any such levy, lien, encumbrance or security interest; comply with all
laws, statutes and regulations pertaining to the Collateral and its use and
operation; execute, file and record such statements, notices and agreements,
take such actions and obtain such certificates and other documents as necessary
to perfect, evidence and continue the Bank's security interest in the Collateral
and the priority thereof; maintain accurate and complete records of the
Collateral which show all sales, claims and allowances; and properly care for,
house, store and maintain the Collateral in good condition, free of misuse,
abuse and deterioration, other than normal wear and tear. The Borrower shall
also maintain and preserve all its properties in good working order and
condition in accordance with the general practice of other businesses of similar
character and size, ordinary wear and tear excepted.
6.04. LOCATION AND MAINTENANCE OF EQUIPMENT.
A. LOCATION. The Equipment shall at all times be in the Borrower's
physical possession, shall not be held for sale or lease and shall be kept
only at the following location(s): 5095 Murphy Canyon Road, San Diego, CA
92123.
(7)
<PAGE> 8
The Borrower shall not secrete, abandon or remove, or permit the removal
of, the Equipment, or any part thereof, from the location(s) shown above
or remove or permit to be removed any accessories now or hereafter placed
upon the Equipment.
B. EQUIPMENT SCHEDULES. Upon the Bank's demand, the Borrower shall
immediately provide the Bank with a complete and accurate description of
the Equipment including, as applicable, the make, model, identification
number and serial number of each item of Equipment. In addition, the
Borrower shall immediately notify the Bank of the acquisition of any new
or additional Equipment or the replacement of any existing Equipment and
shall supply the Bank with a complete description of any such additional
or replacement Equipment.
C. MAINTENANCE OF EQUIPMENT. The Borrower shall, at the Borrower's sole
cost and expense, keep and maintain the Equipment in a good state of
repair and shall not destroy, misuse, abuse, illegally use or be negligent
in the care of the Equipment or any part thereof. The Borrower shall not
remove, destroy, obliterate, change, cover, paint, deface or alter the
name plates, serial numbers, labels or other distinguishing numbers or
identification marks placed upon the Equipment or any part thereof by or
on behalf of the manufacturer, any dealer or rebuilder thereof, or the
Bank. The Borrower shall not be released from any liability to the Bank
hereunder because of any injury to or loss or destruction of the
Equipment. The Borrower shall allow the Bank and its representatives free
access to and the right to inspect the Equipment at all times and shall
comply with the terms and conditions of any leases covering the real
property on which the Equipment is located and any orders, ordinances,
laws, regulations or rules of any federal, state or municipal agency or
authority having jurisdiction of such real property or the conduct of
business of the persons having control or possession of the Equipment.
D. FIXTURES. The Equipment is not now and shall not at any time hereafter
be so affixed to the real property on which it is located as to become a
fixture or a part thereof. The Equipment is now and shall at all times
hereafter be and remain personal property of the Borrower.
6.05. LOCATION AND QUALITY OF INVENTORY. The Inventory (i) is now and shall at
all times hereafter be of good and merchantable quality and free from defects;
(ii) is not now and shall not at any time hereafter be stored with a bailee,
warehouseman or similar party without the Bank's prior written consent and, in
such event the Borrower will concurrently therewith cause any such bailee,
warehouseman or similar party to issue and deliver to the Bank, in form
acceptable to the Bank, warehouse receipts in the Bank's name evidencing the
storage of inventory; (iii) shall at all times (except as otherwise permitted by
this section) be in the Borrower's physical possession; (iv) shall not be held
by others on consignment, sale on approval, or sale or return; and (v) shall be
kept only at the following locations(s): 5095 Murphy Canyon Road, San Diego, CA
92123.
6.06. PAYMENT OF OBLIGATIONS AND TAXES. Make timely payment of all assessments
and taxes and all of its liabilities and obligations including, but not limited
to, trade payables, unless the same are being contested in good faith by
appropriate proceedings with the appropriate court or regulatory agency. For
purposes hereof the Borrower's issuance of a check, draft or similar instrument
without delivery to the intended payee shall not constitute payment.
6.07. INSPECTION RIGHTS. At any reasonable time and from time to time permit the
Bank or any representative thereof to examine and make copies of the records and
visit the properties of the Borrower and to discuss the business and operations
of the Borrower with any employee or representative thereof. If the Borrower now
or at any time hereafter maintains any records (including, but not limited to,
computer generated records and computer programs for the generation of such
records) in the possession of a third party, the Borrower hereby agrees to
notify such third party to permit the Bank free access to such records at all
reasonable times and to provide the Bank with copies of any records it may
request, all at the Borrower's expense, the amount of which shall be payable
immediately upon demand. In addition, the Bank may, at any reasonable time and
from time to time, conduct inspections and audits of the Collateral and the
Borrower's accounts payable, the cost and expenses of which shall be paid by the
Borrower to the Bank upon demand.
6.08. REPORTING REQUIREMENTS. Deliver or cause to be delivered to the Bank in
form and detail satisfactory to the Bank:
A. ANNUAL STATEMENTS. Not later than 120 days after the end of each of the
Borrower's fiscal years, a copy of the annual financial report of the
Borrower for such year, which report shall be CPA audited with an
unqualified opinion on a consolidated basis with 10-K's.
B. INTERIM STATEMENTS. The Borrower shall provide: (i) Not later than 30
days after the end of each month, a copy of the Borrower's financial
statement which report shall be a company prepared consolidated report for
such month; and (ii) Not later than 45 days after the end of each of the
Borrower's fiscal quarters, a copy of the Borrower's company prepared
consolidated financial statement with 10-Q and detailed schedules and a
copy of the Compliance Certificate signed by an authorized company officer
for such quarter.
C. OTHER INFORMATION. Promptly upon the Bank's request, such other
information pertaining to the Borrower, the Collateral, or any Guarantor
as the Bank may reasonably request
6.09. REDEMPTION OR REPURCHASE OF STOCK. The Borrower shall not redeem or
repurchase any class of its corporate stock now or hereafter outstanding.
6.10. ADDITIONAL INDEBTEDNESS. Not after the date hereof, create, incur or
assume, directly or indirectly, any liability or indebtedness other than (i)
indebtedness owed or to be owed to the Bank, (ii) indebtedness to trade
creditors incurred in the ordinary course of the Borrower's business, or (iii)
indebtedness not exceeding 800,000. pounds with The Royal Bank of Scotland; (iv)
indebtedness in the amount of $2,500,000.00 to Fourth Shift Corporation; and (v)
permitted leases in the aggregate amount of $250,000.00.
6.11. LOANS. Not make any loans or advances or extend credit to any third
person, including, but not limited to, directors, officers, shareholders,
partners, employees, affiliated entities or subsidiaries of the Borrower, except
for credit extended in the ordinary course of the Borrower's business as
presently conducted.
6.12. LIENS AND ENCUMBRANCES. Not create, assume or permit to exist any security
interest, encumbrance, mortgage, deed of trust or other lien (including, but not
limited to, a lien of attachment, judgment or execution) affecting any of the
Borrower's properties, or execute or allow to be filed any financing statement
or continuation thereof affecting any such properties, except for Permitted
Liens or as otherwise provided in this Agreement and except for liens or
encumbrances made to Just-in-time Enterprise Systems, Inc. in the amount of
$2,500,000.00.
6.13. TRANSFER ASSETS. Not sell, contract for sale, transfer, convey, assign,
lease or sublet any assets of the Borrower, including, but not limited to, the
Collateral, except in the ordinary course of business as presently conducted by
the Borrower, and then, only for full, fair and reasonable consideration.
6.14. CHANGE IN THE NATURE OF BUSINESS. Not make any material change in the
Borrower's financial structure or in the nature of the Borrower's business as
existing or conducted as of the date of this Agreement.
6.15. FINANCIAL CONDITION. Maintain at all times:
A. NET WORTH. A minimum Effective Tangible Net Worth of not less than
$7,300.000.00, increasing by 75% of yearly net income on a consolidated
basis.
(8)
<PAGE> 9
B. PROFITABILITY. The Borrower shall not have two consecutive quarterly
losses.
C. DEBT TO NET WORTH RATIO. A Debt to Effective Tangible Net Worth ratio
of not more than 2.80 to 1.00 on a consolidated basis.
D. QUICK RATIO. A minimum ratio of the sum of cash, cash equivalents and
accounts receivable to current liabilities of not less than 1.00 to 1.00
on a consolidated basis.
E. DEBT SERVICE COVERAGE RATIO. A minimum debt service coverage ratio of
not less than 1.50 to 1.00 on a consolidated basis, where such ratio is
defined as net profit after taxes plus depreciation and interest expense
divided by the current portion of long term debt and interest expense.
6.16. COMPENSATION OF EMPLOYEES. Compensate the employees of the Borrower for
services rendered at an hourly rate at least equal to the minimum hourly rate
prescribed by any applicable federal or state law or regulation.
6.17. ENVIRONMENTAL COMPLIANCE. The Borrower shall:
A. Conduct the Borrower's operations and keep and maintain all of its
properties in compliance with all Environmental Laws.
B. Give prompt written notice to the Bank, but in no event later than 10
days after becoming aware, of the following: (i) any enforcement, cleanup,
removal or other governmental or regulatory actions instituted, completed
or threatened against the Borrower or any of its affiliates or any of its
respective properties pursuant to any applicable Environmental Laws, (ii)
all other Environmental Claims, and (iii) any environmental or similar
condition on any real property adjoining or in the vicinity of the
property of the Borrower or its affiliates that could reasonably be
anticipated to cause such property or any part thereof to be subject to
any restrictions on the ownership, occupancy, transferability or use of
such property under any Environmental Laws.
C. Upon the written request of the Bank, the Borrower shall submit to the
Bank, at its sole cost and expense, at reasonable intervals, a report
providing an update of the status of any environmental, health or safety
compliance, hazard or liability issue identified in any notice required
pursuant to this Section.
D. At all times indemnify and hold harmless the Bank from and against any
and all liability arising out of any Environmental Claims.
6.18. NOTICE. Give the Bank prompt written notice of any and all (i) Events of
Default; (ii) litigation, arbitration or administrative proceedings to which the
Borrower is a party and in which the claim or liability exceeds $100,000.00 or
which affects the Collateral; (iii) any change in the place of business of the
Borrower or the acquisition of more than one place of business by the Borrower;
(iv) any proposed or actual change in the name, identity or business nature of
the Borrower; (v) any change in the location of the Equipment or Inventory; and
(vi) other matters which have resulted in, or might result in a material adverse
change in the Collateral or the financial condition or business operations of
the Borrower.
SECTION VII
EVENTS OF DEFAULT
Any one or more of the following described events shall constitute an event of
default under this Agreement:
7.01. NON-PAYMENT. The Borrower shall fail to pay any Obligations within 10 days
of when due.
7.02. PERFORMANCE UNDER THIS AND OTHER AGREEMENTS. The Borrower shall fail in
any material respect to perform or observe any term, covenant or agreement
contained in this Agreement or in any document, instrument or agreement
evidencing or relating to any indebtedness of the Borrower (whether owed to the
Bank or third persons), and any such failure (exclusive of the payment of money
to the Bank under this Agreement or under any other document, instrument or
agreement, which failure shall constitute and be an immediate Event of Default
if not paid when due or when demanded to be due) shall continue for more than 30
days after written notice from the Bank to the Borrower of the existence and
character of such Event of Default
7.03. REPRESENTATIONS AND WARRANTIES; FINANCIAL STATEMENTS. Any representation
or warranty made by the Borrower under or in connection with this Agreement or
any financial statement given by the Borrower or any Guarantor shall prove to
have been incorrect in any material respect when made or given or when deemed to
have been made or given.
7.04. INSOLVENCY. The Borrower or any Guarantor shall: (i) become insolvent or
be unable to pay its debts as they mature; (ii) make an assignment for the
benefit of creditors or to an agent authorized to liquidate any substantial
amount of its properties or assets; (iii) file a voluntary petition in
bankruptcy or seeking reorganization or to effect a plan or other arrangement
with creditors; (iv) file an answer admitting the material allegations of an
involuntary petition relating to bankruptcy or reorganization or join in any
such petition; (v) become or be adjudicated a bankrupt; (vi) apply for or
consent to the appointment of, or consent that an order be made, appointing any
receiver, custodian or trustee for itself or any of its properties, assets or
businesses; or (vii) any receiver, custodian or trustee shall have been
appointed for all or a substantial part of its properties, assets or businesses
and shall not be discharged within 30 days after the date of such appointment.
7.05. EXECUTION. Any writ of execution or attachment or any judgment lien shall
be issued against any property of the Borrower and shall not be discharged or
bonded against or released within 30 days after the issuance or attachment of
such writ or lien.
7.06. REVOCATION OR LIMITATION OF GUARANTY. Any Guaranty shall be revoked or
limited or its enforceability or validity shall be contested by any Guarantor,
by operation of law, legal proceeding or otherwise or any Guarantor who is a
natural person shall die.
7.07. SUSPENSION. The Borrower shall voluntarily suspend the transaction of
business or allow to be suspended, terminated, revoked or expired any permit
license or approval of any governmental body necessary to conduct the Borrower's
business as now conducted.
7.08. CHANGE IN OWNERSHIP. There shall occur a sale, transfer, disposition or
encumbrance (whether voluntary or involuntary), or an agreement shall be entered
into to do so, with respect to more than 10% of the issued and outstanding
capital stock of the Borrower.
7.09. IMPAIRMENT OF COLLATERAL. There shall occur any injury or damage to all or
any part of the Collateral or all or any part of the Collateral shall be lost,
stolen or destroyed, which changes cause the Collateral, in the sole and
absolute judgement of the Bank, to become unacceptable as to character and
value.
(9)
<PAGE> 10
SECTION VIII
REMEDIES ON DEFAULT
Upon the occurrence of any Event of Default, the Bank may, at its sole election,
without demand and upon only such notice as may be required by law:
8.01. ACCELERATION. Declare any or all of the Borrower's indebtedness owing to
the Bank, whether under this Agreement or under any other document, instrument
or agreement immediately due and payable, whether or not otherwise due and
payable.
8.02. CEASE EXTENDING CREDIT. Cease making Advances or otherwise extending
credit to or for the account of the Borrower under this Agreement or under any
other agreement now existing or hereafter entered into between the Borrower and
the Bank.
8.03. TERMINATION. Terminate this Agreement as to any future obligation of the
Bank without affecting the Borrower's obligations to the Bank or the Bank's
rights and remedies under this Agreement or under any other document, instrument
or agreement.
8.04. SEGREGATE COLLECTIONS. Require the Borrower to segregate all collections
and proceeds of the Collateral so that they are capable of identification and to
deliver such collections and proceeds to the Bank, in kind, without commingling,
at such times and in such manner as required by the Bank.
8.05. RECORDS OF COLLATERAL. Require the Borrower to periodically deliver to the
Bank records and schedules showing the status, condition and location of the
Collateral and such contracts or other matters which affect the Collateral. In
connection herewith, the Bank may conduct such audits or other examination of
such records, including, but not limited to, verification of balances owing by
any account debtor of the Borrower, as the Bank, in its sole and absolute
discretion, deems necessary.
8.06. NOTIFICATION OF ACCOUNT DEBTORS.
A. Notify any or all of the Borrower's Account Debtors, or any buyers or
transferees of the Collateral or other persons of the Bank's interest in
the Collateral and the proceeds thereof and instruct such person(s) to
thereafter make any payment due the Borrower directly to the Bank.
B. The Borrower hereby irrevocably and unconditionally appoints the Bank
as its attorney-in-fact to: (i) endorse the Borrower's name on any notes,
acceptances, checks, drafts, money orders or other evidence of payment
that may come into the Bank's possession; (ii) sign the Borrower's name on
any invoice or bill of lading relating to any of the Collateral; (iii)
notify post office authorities to change the address for delivery of mail
addressed to the Borrower to such address as the Bank may designate and
take possession of and open mail addressed to the Borrower and remove
therefrom, proceeds of and payments on the Collateral; and (iv) demand,
receive and endorse payment and give receipts, releases and satisfactions
for and sue for all money payable to the Borrower. All of the preceding
may be done either in the name of the Bank or in the name of the Borrower
with the same force and effect as the Borrower could have done had this
Agreement not been entered into.
C. Require the Borrower to indicate on the face of all invoices (or such
other documentation as may be specified by the Bank relating to the sale,
delivery or shipment of goods giving rise to the account) that the account
has been assigned to the Bank and that all payments are to be made
directly to the Bank at such address as the Bank may designate.
8.07. COMPROMISE. Grant extensions, compromise claims and settle any account for
less than the amount owing thereunder, all without notice to the Borrower or any
obligor on or guarantor of the Obligations.
8.08. PROTECTION OF SECURITY INTEREST. Make such payments and do such acts as
the Bank, in its sole judgment considers necessary and reasonable to protect its
security interest or lien in the Collateral. The Borrower hereby irrevocably
authorizes the Bank to pay, purchase, contest or compromise any encumbrance,
lien or claim which the Bank, in its sole judgment deems to be prior or superior
to its security interest. Further, the Borrower hereby agrees to pay to the
Bank, upon demand therefor, all expenses and expenditures (including attorneys'
fees) incurred in connection with the foregoing.
8.09. FORECLOSURE. Enforce any security interest or lien given or provided for
under this Agreement or under any security agreement, mortgage, deed of trust or
other document relating to the Collateral, in such manner and such order, as to
all or any part of the Collateral, as the Bank, in its sole judgment, deems to
be necessary or appropriate and the Borrower hereby waives any and all rights,
obligations or defenses now or hereafter established by law relating to the
foregoing. In the enforcement of its security interest or lien, the Bank is
authorized to enter upon the premises where any Collateral is located and take
possession of the Collateral or any part thereof, together with the Borrower's
records pertaining thereto, or the Bank may require the Borrower to assemble the
Collateral and records pertaining thereto and make such Collateral and records
available to the Bank at a place designated by the Bank. The Bank may sell the
Collateral or any portions thereof, together with all additions, accessions and
accessories thereto, giving only such notices and following only such procedures
as are required by law, at either a public or private sale, or both, with or
without having the Collateral present at the time of sale, which sale shall be
on such terms and conditions and conducted in such manner as the Bank determines
in its sole judgment to be commercially reasonable. Any deficiency which exists
after the disposition or liquidation of the Collateral shall be a continuing
liability of any obligor on or any guarantor of the Obligations and shall be
immediately paid to the Bank.
8.10. APPLICATION OF PROCEEDS. All amounts received by the Bank as proceeds from
the disposition or liquidation of the Collateral shall be applied to the
Borrower's indebtedness to the Bank as follows: first to the costs and expenses
of collection, enforcement protection and preservation of the Bank's lien in the
Collateral, including court costs and reasonable attorneys' fees, whether or not
suit is commenced by the Bank; next, to those costs and expenses incurred by the
Bank in protecting, preserving, enforcing, collecting, selling or disposing of
the Collateral; next to the payment of accrued and unpaid interest on all of the
Obligations; next to the payment of the outstanding principal balance of the
Obligations; and last, to the payment of any other indebtedness owed by the
Borrower to the Bank. Any excess Collateral or excess proceeds existing after
the disposition or liquidation of the Collateral will be returned or paid by the
Bank to the Borrower.
8.11. LETTERS OF CREDIT. In addition to any other remedies available to the
Bank under this Agreement or otherwise, the Bank may require the Borrower to pay
immediately to the Bank, for application against any drawings under any
outstanding Letters of Credit, the outstanding principal amount of any such
Letters of Credit which have not expired. Any portion of the amount so paid to
the Bank which is not applied to satisfy draws under any such Letters of Credit
or any other obligations of the Borrower to the Bank shall be repaid to the
Borrower without interest.
8.12. NON-EXCLUSIVITY OF REMEDIES. Exercise one or more of the Bank's rights set
forth herein or seek such other rights or pursue such other remedies as may be
provided by law, in equity or in any other agreement now existing or hereafter
entered into between the Borrower and the Bank, or otherwise.
(10)
<PAGE> 11
SECTION IX
MISCELLANEOUS PROVISIONS
9.01. DEFAULT INTEREST RATE. If an Event of Default has occurred and is
continuing, the Bank, at its option, may require the Borrower to pay to the
Bank interest on any Indebtedness or amount payable under this Agreement at a
rate which is 3% in excess of the rate or rates otherwise then in effect under
this Agreement.
9.02. REIMBURSEMENT OF CERTAIN COSTS IN CONNECTION WITH LETTERS OF CREDIT. The
Borrower shall, upon the Bank's request, promptly pay to and reimburse the Bank
for all costs incurred and payments made by the Bank by reason of any future
assessment, reserve, deposit or similar requirement or any surcharge, tax or fee
imposed upon the Bank or as a result of the Bank's compliance with any directive
or requirement of any regulatory authority pertaining or relating to any Letters
of Credit.
9.03. RELIANCE. Each warranty, representation, covenant and agreement contained
in this Agreement shall be conclusively presumed to have been relied upon by the
Bank regardless of any investigation made or information possessed by the Bank
and shall be cumulative and in addition to any other warranties,
representations, covenants or agreements which the Borrower shall now or
hereafter give, or cause to be given, to the Bank.
9.04. DISPUTE RESOLUTION.
A. DISPUTES. It is understood and agreed that upon the request of any
party to this Agreement; any dispute, claim or controversy of any kind,
whether in contract or in tort, statutory or common law, legal or
equitable, now existing or hereinafter arising between the parties in any
way arising out of, pertaining to or in connection with: (i) this
Agreement or any related agreements, documents or instruments, (ii) all
past and present loans, credits, accounts, deposit accounts (whether
demand deposits or time deposits), safe deposit boxes, safekeeping
agreements, guarantees, letters of credit, goods or services, or other
transactions, contracts or agreements of any kind, (iii) any incidents,
omissions, acts, practices, or occurrences causing injury to any party
whereby another party or its agents, employees or representatives may be
liable, in whole or in part, or (iv) any aspect of the past or present
relationships of the parties, shall be resolved through a two-step dispute
resolution process administered by the Judicial Arbitration & Mediation
Services, Inc. ("JAMS") as follows:
B. STEP I - MEDIATION. At the request of any party to the dispute, claim
or controversy, the matter shall be referred to the nearest office of JAMS
for mediation, which is an informal, non-binding conference or conferences
between the parties in which a retired judge or justice from the JAMS
panel will seek to guide the parties to a resolution of the case.
C. STEP II - ARBITRATION (CONTRACTS NOT SECURED BY REAL PROPERTY). Should
any dispute, claim or controversy remain unresolved at the conclusion of
the Step I Mediation Phase, then (subject to the restriction at the end of
this subparagraph) all such remaining matters shall be resolved by final
and binding arbitration before a different judicial panelist, unless the
parties shall agree to have the mediator panelist act as arbitrator. The
hearing shall be conducted at a location determined by the arbitrator in
Los Angeles, California (or such other city as may be agreed upon by the
parties) and shall be administered by and in accordance with the then
existing Rules of Practice and Procedure of JAMS and judgement upon any
award rendered by the arbitrator may be entered by any State or Federal
Court having jurisdiction thereof. The arbitrator shall determine which is
the prevailing party and shall include in the award that party's
reasonable attorneys' fees and costs. This subparagraph shall apply only
if, at the time of the submission of the matter to JAMS, the dispute or
issues involved do not arise out of any transaction which is secured by
real property collateral or, if so secured, all parties consent to such
submission.
As soon as practicable after selection of the arbitrator, the arbitrator,
or the arbitrator's designated representative, shall determine a
reasonable estimate of anticipated fees and costs of the arbitrator, and
render a statement to each party setting forth that party's pro-rata share
of said fees and costs. Thereafter, each party shall, within 10 days of
receipt of said statement deposit said sum with the arbitrator. Failure of
any party to make such a deposit shall result in a forfeiture by the
non-depositing party of the right to prosecute or defend the claim which
is the subject of the arbitration, but shall not otherwise serve to abate,
stay or suspend the arbitration proceedings.
D. STEP 11 - TRIAL BY COURT REFERENCE (CONTRACTS SECURED BY REAL
PROPERTY). If the dispute, claim or controversy is not one required or
agreed to be submitted to arbitration, as provided in the above
subparagraph, and has not been resolved by Step I mediation, then any
remaining dispute, claim or controversy shall be submitted for
determination by a trial on Order of Reference conducted by a retired
judge or justice from the panel of JAMS appointed pursuant to the
provisions of Section 638(1) of the California Code of Civil Procedure, or
any amendment addition or successor section thereto, to hear the case and
report a statement of decision thereon. The parties intend this general
reference agreement to be specifically enforceable in accordance with said
section. If the parties are unable to agree upon a member of the JAMS
panel to act as referee, then one shall be appointed by the Presiding
Judge of the county wherein the hearing is to be held. The parties shall
pay in advance, to the referee, the estimated reasonable fees and costs of
the reference, as may be specified in advance by the referee. The parties
shall initially share equally, by paying their proportionate amount of the
estimated fees and costs of the reference. Failure of any party to make
such a fee deposit shall result in a forfeiture by the non-depositing
party of the right to prosecute or defend any cause of action which is the
subject of the reference, but shall not otherwise serve to abate, stay or
suspend the reference proceeding.
E. PROVISIONAL REMEDIES, SELF HELP AND FORECLOSURE. No provision of, or
the exercise of any rights under any portion of this Dispute Resolution
provision, shall limit the right of any party to exercise self help
remedies such as set off, foreclosure against any real or personal
property collateral, or the obtaining of provisional or ancillary
remedies, such as injunctive relief or the appointment of a receiver, from
any court having jurisdiction before, during or after the pendency of any
arbitration. At the Bank's option, foreclosure under a deed of trust or
mortgage may be accomplished either by exercise of power of sale under the
deed of trust or mortgage, or by judicial foreclosure. The institution and
maintenance of an action for provisional remedies, pursuit of provisional
or ancillary remedies or exercise of self help remedies shall not
constitute a waiver of the right of any party to submit the controversy or
claim to arbitration.
9.05. WAIVER OF JURY. The Borrower and the Bank hereby expressly and voluntarily
waive any and all rights, whether arising under the California constitution, any
rules of the California Code of Civil Procedure, common law or otherwise, to
demand a trial by jury in any action, matter, claim or cause of action
whatsoever arising out of or in any way related to this Agreement or any other
agreement document or transaction contemplated hereby.
9.06. RESTRUCTURING EXPENSES. In the event the Bank and the Borrower negotiate
for, or enter into, any restructuring, modification or refinancing of the
Indebtedness under this Agreement for the purposes of remedying an Event of
Default, The Bank, may require the Borrower to reimburse all of the Bank's costs
and expenses incurred in connection therewith, including, but not limited to
reasonable attorneys' fees and the costs of any audit or appraisals required by
the Bank to be performed in connection with such restructuring, modification or
refinancing.
9.07. ATTORNEYS' FEES. In the event of any suit, mediation, arbitration or other
action in relation to this Agreement or any document, instrument or agreement
executed with respect to, evidencing or securing the indebtedness hereunder, the
prevailing party, in addition to all other sums to which it may be entitled,
shall
(11)
CL-400 (LE-LOCR/RD) TR-30,001,402
<PAGE> 12
be entitled to reasonable attorneys' fees.
9.08. NOTICES. All notices, payments, requests, information and demands which
either party hereto may desire, or may be required to give or make to the other
party shall be given or made to such party by hand delivery or through deposit
in the United States mail, postage prepaid, or by Western Union telegram,
addressed to the address set forth below such party's signature to this
Agreement or to such other address as may be specified from time to time in
writing by either party to the other.
9.09. WAIVER. Neither the failure nor delay by the Bank in exercising any right
hereunder or under any document, instrument or agreement mentioned herein shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right hereunder or under any document, instrument or agreement mentioned herein
preclude other or further exercise thereof or the exercise of any other right;
nor shall any waiver of any right or default hereunder or under any other
document, instrument or agreement mentioned herein constitute a waiver of any
other right or default or constitute a waiver of any other default of the same
or any other term or provision.
9.10. CONFLICTING PROVISIONS. To the extent that any of the terms or provisions
contained in this Agreement are inconsistent with those contained in any other
document, instrument or agreement executed pursuant hereto, the terms and
provisions contained herein shall control. Otherwise, such provisions shall be
considered cumulative.
9.11. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and
inure to the benefit of the Borrower and the Bank and their respective
successors and assigns, except that the Borrower shall not have the right to
assign its rights hereunder or any interest herein without the Bank's prior
written consent. The Bank may sell, assign or grant participations in all or any
portion of its rights and benefits hereunder. The Borrower agrees that, in
connection with any such sale, grant or assignment the Bank may deliver to the
prospective buyer, participant or assignee financial statements and other
relevant information relating to the Borrower and any guarantor.
9.12. JURISDICTION. This Agreement, any notes issued hereunder, the rights of
the parties hereunder to and concerning the Collateral, and any documents,
instruments or agreements mentioned or referred to herein shall be governed by
and construed according to the laws of the State of California, to the
jurisdiction of whose courts the parties hereby submit.
9.13. HEADINGS. The headings set forth herein are solely for the purpose of
identification and have no legal significance.
9.14. ENTIRE AGREEMENT. This Agreement and all documents, instruments and
agreements mentioned herein constitute the entire and complete understanding of
the parties with respect to the transactions contemplated hereunder. All
previous conversations, memoranda and writings between the parties or pertaining
to the transactions contemplated hereunder that are not incorporated or
referenced in this Agreement or in such documents, instruments and agreements
are superseded hereby.
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of
the date first hereinabove written.
BANK: BORROWER:
SANWA BANK CALIFORNIA INTERACTIVE GROUP INC.
By:_______________________________ By:_________________________________
Name /Title Mark Hellinger, President and
Chief Operating Officer
Address: Address:
San Diego Main Office (CBC) 5095 Murphy Canyon Road
1280 Fourth Avenue San Diego, CA 92123
San Diego, CA 92101
(12)
<PAGE> 13
ADDENDUM TO CREDIT AGREEMENT
Foreign Exchange Facility
This Addendum is made and entered into as of the 30th day of June, 1997
(this "Addendum"), by and between SANWA BANK CALIFORNIA (the "Bank") and
INTERACTIVE GROUP, INC. (the "Borrower"), and is and shall be deemed to be a
part of and subject to that certain Line of Credit Agreement dated as of June
30, 1997, between the Bank and the Borrower, as such agreement may be amended
from time to time, and any and all addenda and riders thereto (collectively the
"Agreement").
1. DEFINITIONS. Unless otherwise defined herein, all terms used in this
Addendum shall have the same meanings as in the Agreement. To the extent that
any of the terms or provisions of this Addendum conflict with those contained in
the Agreement, the terms and provisions contained herein shall control. As used
in this Addendum, the following terms shall have the following meanings:
"Business Day" shall mean a day other than a Saturday or Sunday
on which the Bank is open for business in Los Angeles, California.
"Close-Out Date" means the day (which shall be a Business Day)
on which the Bank, pursuant to Paragraph 5.1 hereof, closes out and
liquidates FX Transactions.
"Closing Value" has the meaning given to it in Paragraph
5.1(a) hereof.
"Closing Gain" means the amount determined in accordance with
Paragraph 5.1(b) or 5.1(c) hereof, as applicable.
"Closing Loss" means the amount determined in accordance with
Paragraph 5.1(b) or 5.1(c) hereof, as applicable.
"Credit Percentage" means, generally, 15% provided, however,
that the Bank reserves the right to designate a greater or lesser
percentage for any given FX Transaction due to the Foreign Currency
involved or the length of the FX Transaction.
"Foreign Currency" means a legally traded currency (other than
U.S. Dollars) which may be transferred by paperless wire transfer and
in which the Bank regularly trades.
"FX Risk Liability" means the product of (i) Credit Percentage
times (ii) the aggregate of the Notional Values of all FX Transaction
outstanding, net of any Offsetting Transactions.
"FX Limit" means $3,000,000.00.
"FX Transaction" means any transaction between the Bank and the
Borrower pursuant to which the Bank has agreed to sell to or to
purchase from the Borrower a Foreign Currency of an agreed amount at an
agreed price in U.S. Dollars, deliverable and payable on an agreed
date.
"Notional Value" means, with respect to any FX Transaction, the
U.S. Dollar value of such transaction (the U.S. Dollar equivalent of
the price at which the Bank agreed to sell to the Borrower a Foreign
Currency or the price at which the Bank agreed to purchase of a Foreign
Currency from the Borrower).
<PAGE> 14
"Offsetting Transaction" means an FX Transaction to purchase a
Foreign Currency and an FX Transaction to sell a Foreign Currency which
are for the same Foreign Currency and which have the same Settlement
Date and designated as an Offsetting Transaction at the time of the
Transaction.
"Settlement Date" means, with respect to any FX Transaction, the
Business Day on which the Borrower has agreed to (i) deliver the
required amount of Foreign Currency or (ii) to pay in U.S. Dollars, the
agreed purchase price of the Foreign Currency.
2. FOREIGN EXCHANGE FACILITY. Subject to the terms of the Agreement and
those contained herein, the Bank agrees, at the Borrower's request, to enter
into FX Transactions with the Borrower from time to time prior to the Expiration
Date, provided that, at no time shall the aggregate FX Risk Liability exceed the
FX Limit.
2.1 REQUESTS FOR FX TRANSACTIONS. Each request for a FX
Transaction shall be made by telephone to the Bank's Treasury
Department (each a "Request") and may be confirmed in writing to the
address specified in Paragraph 6.4 below, shall specify the Foreign
Currency to be purchased or sold, the amount of such Foreign Currency
and the Settlement Date. Each Request shall be delivered or
communicated to the Bank no later than 3:00 p.m. (California time) on
the day (which shall be a Business Day) on which the FX Transaction is
requested. By making any such Request, the Borrower agrees that all
matters relating to each such FX Transaction shall be governed by this
Addendum and the Agreement and the Borrower restates all warranties and
representations made by the Borrower herein as if made on the date the
FX Transaction is entered into.
2.2 EXPIRATION DATE. The commitment by the Bank to enter into FX
Transactions shall, unless earlier terminated in accordance with this
Addendum, automatically terminate on the Expiration Date of the Line of
Credit established in the Agreement and no FX Transaction shall expire
on a date which is more than 90 days after such Expiration Date.
2.3 TENOR. No FX Transaction shall have a Settlement Date which
is more than 90 days after the date of such FX Transaction.
2.4 AVAILABILITY. The Bank may refuse to enter into a FX
Transaction with the Borrower where the Bank, in its sole discretion,
determines that (i) the requested Foreign Currency is unavailable, or
(ii) the Bank is not then dealing in the requested Foreign Currency, or
(iii) the Bank would be prohibited by any applicable law, regulation or
order from purchasing such Foreign Currency.
2.5 PURPOSE. The FX Transaction shall be used to hedge the
Borrower's foreign exchange exposure and/or risk.
2.6 PAYMENT. Payment is due on the Settlement Date of the
respective FX Transaction. The Bank is hereby authorized by the
Borrower to charge the full settlement price of any FX Transaction
against the depository account or accounts maintained by the Borrower
with the Bank on the Settlement Date. In the event that the Borrower
fails to pay the settlement price of any FX Transaction on the relevant
Settlement Date, or the balances in the depository account or accounts
maintained by the Borrower with the Bank are insufficient to pay the
settlement price on the Settlement Date, without limiting the rights of
the Bank under the Agreement or this Addendum or waiving any Event of
Default caused thereby, the Bank may, and the Borrower hereby
authorizes the Bank to create an Advance bearing interest at the rate
provided in the Agreement to pay the settlement price on the Settlement
Date.
2.7 INCREASED COSTS. The Borrower shall, upon the Bank's
request, promptly pay to and reimburse the Bank for all costs incurred
and payments made by the Bank by reason of any assessment, reserve,
deposit, capital maintenance or similar requirement or any surcharge,
tax
2
<PAGE> 15
or fee imposed upon the Bank or as a result of the Bank's compliance
with any directive or requirement of any regulatory authority
pertaining or relating to any Foreign Exchange Contract.
3.0 CONDITIONS PRECEDENT. The obligation of the Bank to enter into each
FX Transaction for or on account of the Borrower (including the initial FX
Transaction) shall be subject to the further conditions precedent that, on the
date of each FX Transaction and after the making or creation thereof all
conditions precedent as set forth in the Agreement have been fully satisfied.
4.0 EVENTS OF DEFAULT. The Borrower's failure to pay for or deliver, as
applicable, any Foreign Currency on the respective Settlement Date for any FX
Transaction shall be an immediate Event of Default under the Agreement.
5.0 REMEDIES ON DEFAULT. Upon the of occurrence of any Event of Default,
the Bank, may, at its sole and absolute discretion, without demand and only upon
such notice as may be required by law:
5.1 CLOSE-OUT AND LIQUIDATION. The Bank shall have the right
to close-out and liquidate all, but not less than all, the outstanding
FX Transactions (except to the extent that, in the good faith opinion
of the Bank, certain FX Transactions may not be closed-out and
liquidated under applicable law) in the following manner:
(a) Close-out and liquidation shall be effected by
closing-out each outstanding FX Transaction (including any FX
Transaction which has not been performed and in respect of
which the Settlement Date is on or proceeds the Close-Out
Date) so that each FX Transaction is canceled. The Bank shall
then calculate, in good faith, as of the value of each such
canceled FX Transaction (the "Closing Value") by converting:
(i) in the case of an FX Transaction whose
Settlement Date is the same as or later than the
Close-Out Date, the amount of the Foreign Currency into
U.S. Dollars at a rate of exchange at which the Bank
can buy or sell, as appropriate, U.S. Dollars with or
against the Foreign Currency for delivery on the
Settlement Date of the respective FX Transaction, or
(ii) in the case of an FX Transaction whose
Settlement Date precedes the Close-Out Date, converting
the amount of the Foreign Currency, adjusted by adding
interest with respect thereto at the Variable Interest
Rate from the Settlement Date to the Close-Out Date,
into U.S. Dollars at a rate of exchange at which the
Bank can buy or sell, as appropriate, U.S. Dollars with
or against the Foreign Currency for delivery on the
Close-Out Date;
(b) With respect to a FX Transaction pursuant to which
the Bank agreed to purchase a Foreign Currency from the
Borrower, the amount by which the Closing Value as so
determined exceeds the Notional Value is a Closing Loss and
the amount by which the Closing Value as so determined is less
than the Notional Value is a Closing Gain.
(c) With respect to a FX Transaction pursuant to which
the Bank agreed to sell a Foreign Currency to the Borrower,
the amount by which the Closing Value as so determined exceeds
the Notional Value is Closing Gain and the amount by which the
Closing Value as so determined is less than the Notional Value
a Closing Loss.
(d) To the extent permitted by applicable law, the
Closing Gain or Closing Loss, as the case may be, for each
Settlement Date falling after the Close-Out Date will be
adjusted (discounted) to its net present value (the
calculation of the amount of such adjustment shall be made by
the Bank and shall be conclusive as between the parties).
3
<PAGE> 16
(e) To the extent the net amount of Closing Gains exceeds
Closing Losses, such amount shall be payable by the Bank to the
Borrower. To the extent the net amount of Closing Losses exceeds
Closing Gains, such amount shall be payable by the Borrower. In the
case of the latter, the Borrower promises and agrees to pay interest on
the amount so payable from the Close-Out Date until paid at the
Variable Rate.
5.2 TERMINATION. Terminate this Addendum as to any future obligation of
the Bank with respect to FX Transactions, without affecting the Borrower's
obligations to the Bank or the Bank's rights and remedies under the Agreement or
under any other document, instrument or agreement.
5.3 REMEDIES UNDER CREDIT AGREEMENT. Exercise whether successively or
concurrently any one or more of the Bank's rights and remedies as are set forth
in the Agreement.
5.4 NON-EXCLUSIVITY OF REMEDIES. Exercise one or more of the Bank's
rights set forth herein or seek such other rights or pursue such other remedies
as may be provided by law, in equity or in any other agreement now existing or
hereafter entered into between the Borrower and the Bank, or otherwise.
6.0 OTHER TERMS AND CONDITIONS.
6.1 NATURE AND PLACE OF PAYMENTS. All payments made by the Borrower
under the Agreement shall be made without setoff or counterclaim in either
immediately available funds, free and clear of and without deduction for any
taxes, fees or other charges of any nature whatsoever imposed by any taxing
authority (other than California and United States income tax payable by the
Bank), and must be received by Bank by 2:00 p.m. (California time) on the day of
payment, it being expressly agreed and understood that if payment is received by
the Bank after 2:00 p.m. (California time), such payment will be considered to
have been made on the next succeeding Business Day. If any payment required to
be made by the Borrower hereunder becomes due and payable on a day other than a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day. All payments required to be made hereunder shall be made to the
office of the Bank designated for the receipt of notices in Paragraph 6.4 or
such other office as the Bank shall from time to time designate.
6.2 ILLEGALITY, IMPOSSIBILITY AND FORCE MAJEURE. If either party is
prevented from or hindered or delayed by reason of force majeure or act of State
in the delivery or receipt of any Foreign Currency in respect of an FX
Transaction or if it becomes or, in the good faith judgment of one of the
parties, may become unlawful or impossible for either party to deliver or
receive any Foreign Currency which is subject of an FX Transaction, than either
party may, by notice to the other, require the close-out and liquidation of the
affected FX Transaction in accordance with the provisions of Paragraph 5.1
except that only the FX Transaction so effected shall be subject to liquidation.
6.3 TELEPHONE RECORDING. The Borrower agrees that the Bank may
electronically record all telephone conversations between it and the Borrower
with respect to transactions contemplated under this Agreement and that any such
tape recording may be submitted in evidence in any arbitration or other legal
proceeding. In the event of any dispute, the as to the terms of an FX
Transaction, the Bank may use electronic recordings as the preferred evidence of
the terms of such FX Transaction, notwithstanding the existence of any writing
to the contrary.
6.4 NOTICES: All notices, payments, requests, information and demands
which either party hereto may desire, or may be required to give or make to the
other party hereto with respect to any FX Transaction, shall be given or made to
such party by hand delivery or through deposit in the United States mail,
postage prepaid, or by Western Union telegram, addressed as set forth below or
to such other address as may be specified from time to time in writing by either
party to the other.
4
<PAGE> 17
To the Bank: To the Borrower
Sanwa Bank California Interactive Group, Inc.
1280 Fourth Avenue 5095 Murphy Canyon Road
San Diego, California 92101 San Diego, California 92123
7. Except as specifically provided in this Addendum, all other terms,
conditions and covenants contained in the Agreement shall remain unchanged and
shall continue in full force and effect.
IN WITNESS THEREOF, this Addendum has been executed by the parties
hereto as of the date first hereinabove written.
BANK: BORROWER:
SANWA BANK CALIFORNIA INTERACTIVE GROUP INC.
By: By /s/ MARK HELLINGER
----------------------------- -----------------------------------
Rick Young, Authorized Officer Mark Hellinger, President and Chief
Operating Officer
5
<PAGE> 18
[LOGO]
SANWA
BANK
CALIFORNIA
AMENDMENT OF COMMERCIAL CREDIT AGREEMENT
This Amendment of Commercial Credit Agreement ("Amendment") is made and entered
into this 30th day of June, 1997 by and between SANWA BANK CALIFORNIA (the
"Bank") and INTERACTIVE GROUP, INC. (the "Borrower") with respect to the
following:
This Amendment shall be deemed to be a part of and subject to that certain
commercial credit agreement between the parties hereto and dated as of January
15, 1997, as it may have been or be amended from time to time, and any and all
addenda, riders, exhibits and schedules thereto (collectively, the "Agreement").
Unless otherwise defined herein, all terms used in this Amendment shall have the
same meanings as in the Agreement. To the extent that any of the terms or
provisions of this Amendment conflict with those contained in the Agreement, the
terms and provisions contained herein shall control.
WHEREAS, the Borrower and the Bank mutually desire to extend, amend and/or
modify the Agreement.
NOW THEREFORE, for value received and hereby acknowledged, the Borrower and the
Bank agree as follows:
1. REVISED ANNUAL STATEMENTS. The words "90 days" are modified and amended to
read "120 days" and the words "on a consolidating basis" contained in Section
6.08A of the Agreement (entitled "Annual Statements") are modified and amended
to read "on a consolidated basis".
2. REVISED INTERIM STATEMENTS. Section 6.08B of the Agreement (entitled "Interim
Statements) is hereby deleted in its entirety and replaced with the following
new Section 6.08B which reads as follows: 6.08B. Interim Statements. The
Borrower shall provide: (i) Not later than 30 days after each of the Borrower's
month end, a copy of the financial statement, which report shall be A company
prepared consolidated report for such month; and (ii) not later than 45 days
after each of the borrower's fiscal quarters, a copy of the Borrower's company
prepared consolidated financial statement with 10-Q and detailed schedules and a
copy of the Compliance Certificate signed by an authorized company officer for
such quarter'.
3. REVISED PAYMENT OF DIVIDENDS. Section 6.09 of the Agreement (entitled
"Payment of Dividends") is hereby deleted in its entirety.
4. REVISED LIENS AND ENCUMBRANCES. The following sentence is added to the end of
Section 6.13 of the Agreement (entitled "Liens and Encumbrances"): "and except
for liens or encumbrances made to Just-in-time Enterprise Systems, Inc. in the
amount of $2,500,000.00".
5. REVISED NET WORTH. The words $6,000,000.00, increasing by 75% of yearly net
income" contained in Section 6.16A of the Agreement (entitled "Net Worth") are
modified and amended to read "$7,300,000.00, increasing by 75% of yearly net
income on a consolidated basis".
6. REVISED DEBT TO NET WORTH RATIO. The following words are added to the end of
Section 6.16B of the Agreement (entitled "Debt to Net Worth Ratio"): "on a
consolidated basis".
7. REVISED QUICK RATIO. The following words are added to the end of Section
6.16C of the Agreement (entitled "Quick Ratio"): "on a consolidated basis".
8. REVISED DEBT SERVICE COVERAGE RATIO. The following words are added to the end
of Section 6.16D of the Agreement (entitled "Debt Service Coverage Ratio"): "on
a consolidated basis".
9. INCORPORATION INTO AGREEMENT. On and after the effective date of this
Amendment, each reference in the Agreement to "this Agreement", "hereunder",
"hereof", "herein" or words of like import referring to the Agreement shall mean
and be referenced to the Agreement as amended by this Amendment.
10. NO WAIVER. The execution, delivery and performance of this Amendment shall
not, except as expressly provided herein, constitute a waiver of any provision
of, or operate as a waiver of any right, power or remedy of the Bank under, the
Agreement.
11. CONFIRMATION OF OTHER TERMS AND CONDITIONS. Except as specifically provided
in this Amendment, all other terms, conditions and covenants of the Agreement
which are unaffected by this Amendment shall remain unchanged and shall continue
in full force and effect and the Borrower hereby covenants and agrees to perform
and observe all terms, covenants and agreements provided for in the Agreement,
as hereby amended.
IN WITNESS WHEREOF, this Amendment has been executed by the parties hereto as of
the date first hereinabove written.
BANK: BORROWER:
SANWA BANK CALIFORNIA INTERACTIVE GROUP, INC.
BY: By /s/ MARK HELLINGER
--------------------------- -------------------------------------
NAME / TITLE MARK HELLINGER, PRESIDENT AND
CHIEF OPERATING OFFICER
6
<PAGE> 1
EXHIBIT 10.2
INTERACTIVE GROUP, INC.
1995 STOCK OPTION PLAN
ADOPTED MARCH 30, 1995
AMENDED APRIL 1, 1996
AMENDED JUNE 3, 1997
1. PURPOSES.
(a) The purpose of the Plan is to provide a means by which
selected Employees and Directors of and Consultants to the Company, and its
Affiliates, may be given an opportunity to benefit from increases in value of
the stock of the Company through the granting of (i) Incentive Stock Options,
and (ii) Nonstatutory Stock Options, all as defined below.
(b) The Company, by means of the Plan, seeks to retain the
services of persons who are now Employees and Directors of or Consultants to
the Company or its Affiliates, to secure and retain the services of new
Employees, Directors and Consultants, and to provide incentives for such
persons to exert maximum efforts for the success of the Company and its
Affiliates.
(c) The Company intends that the Stock Awards issued under the
Plan shall, in the discretion of the Board or any Committee to which
responsibility for administration of the Plan has been delegated pursuant to
subsection 3(c), be Options granted pursuant to Section 6 hereof, including
Incentive Stock Options and Nonstatutory Stock Options. All Options shall be
separately designated Incentive Stock Options or Nonstatutory Stock Options at
the time of grant, and in such form as issued pursuant to Section 6, and a
separate certificate or certificates will be issued for shares purchased on
exercise of each type of Option.
2. DEFINITIONS.
(a) "AFFILIATE" means any parent corporation or subsidiary
corporation, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f) respectively, of the Code.
(b) "BOARD" means the Board of Directors of the Company.
(c) "CODE" means the Internal Revenue Code of 1986, as amended.
(d) "COMMITTEE" means a Committee appointed by the Board in
accordance with subsection 3(c) of the Plan.
(e) "COMPANY" means Interactive Group, Inc., a Delaware
corporation.
1.
<PAGE> 2
(f) "CONSULTANT" means any person, including an advisor, engaged
by the Company or an Affiliate to render consulting services and who is
compensated for such services, provided that the term "Consultant" shall not
include Directors who are paid only a director's fee by the Company or who are
not compensated by the Company for their services as Directors.
(g) "CONTINUOUS STATUS AS AN EMPLOYEE, DIRECTOR OR CONSULTANT"
means the employment or relationship as a Director or Consultant is not
interrupted or terminated. The Board, in its sole discretion, may determine
whether Continuous Status as an Employee, Director or Consultant shall be
considered interrupted in the case of: (i) any leave of absence approved by
the Board, including sick leave, military leave, or any other personal leave;
or (ii) transfers between locations of the Company or between the Company,
Affiliates or their successors.
(h) "COVERED EMPLOYEE" means the Chief Executive Officer and the
four (4) other highest compensated officers of the Company for whom total
compensation is required to be reported to the Company's stockholders under the
Exchange Act, as determined for purposes of Section 162(m) of the Code.
(i) "DIRECTOR" means a member of the Board.
(j) "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.
(k) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.
(l) "FAIR MARKET VALUE" means, as of any date, the value of the
common stock of the Company determined as follows:
(i) If the common stock is listed on any established
stock exchange or a national market system, including without limitation the
National Market System of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, the Fair Market Value of a share of
common stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such system or exchange (or the
exchange with the greatest volume of trading in common stock) on the last
market trading day prior to the day of determination, as reported in the Wall
Street Journal or such other source as the Board deems reliable;
(ii) If the common stock is quoted on the NASDAQ System
(but not on the National Market System thereof) or is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a share of common stock shall be the mean between the bid and
asked prices for the common stock on the last market trading day prior to the
day of determination, as reported in the Wall Street Journal or such other
source as the Board deems reliable;
2.
<PAGE> 3
(iii) In the absence of an established market for the
common stock, the Fair Market Value shall be determined in good faith by the
Board.
(m) "INCENTIVE STOCK OPTION" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.
(n) "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.
(o) "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not
a current Employee or Officer of the Company or its parent or subsidiary, does
not receive compensation (directly or indirectly) from the Company or its
parent or subsidiary for services rendered as a consultant or in any capacity
other than as a Director (except for an amount as to which disclosure would not
be required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act of 1933) does not possess an interest in any other transaction
as to which disclosure would be required under Item 404(a) of Regulation S-K,
and is not engaged in a business relationship as to which disclosure would be
required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee director" for purposes of Rule 16b-3.
(p) "OFFICER" means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.
(q) "OPTION" means a stock option granted pursuant to the Plan.
(r) "OPTION AGREEMENT" means a written agreement between the
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. Each Option Agreement shall be subject to the terms and
conditions of the Plan.
(s) "OPTIONEE" means an Employee, Director or Consultant who holds
an outstanding Option.
(t) "OUTSIDE DIRECTOR" means a Director who either (i) is not a
current employee of the Company or an "affiliated corporation" (within the
meaning of Treasury regulations promulgated under Section 162(m) of the Code),
is not a former employee of the Company or an "affiliated corporation"
receiving compensation for prior services (other than benefits under a tax
qualified pension plan), was not an officer of the Company or an "affiliated
corporation" at any time, and is not currently receiving direct or indirect
remuneration from the Company or an "affiliated corporation" for services in
any capacity other than as a Director, or (ii) is otherwise considered an
"outside director" for purposes of Section 162(m) of the Code.
(u) "PLAN" means this Interactive, Inc. 1995 Stock Option Plan.
3.
<PAGE> 4
(v) "RULE 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.
(w) "SECURITIES ACT" means the Securities Act of 1933, as amended.
(x) "STOCK AWARD" means any right granted under the Plan,
including any Option.
(y) "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to
the terms and conditions of the Plan.
3. ADMINISTRATION.
(a) The Plan shall be administered by the Board unless and until
the Board delegates administration to a Committee, as provided in subsection
3(c).
(b) The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:
(i) To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be granted; whether a Stock Award will be an Incentive Stock
Option, a Nonstatutory Stock Option, or a combination of the foregoing; the
provisions of each Stock Award granted (which need not be identical), including
the time or times when a person shall be permitted to receive stock pursuant to
a Stock Award; and the number of shares with respect to which a Stock Award
shall be granted to each such person.
(ii) To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.
(iii) To amend the Plan or a Stock Award as provided in
Section 12 which are not in conflict with the provisions of the Plan.
(iv) Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best
interests of the Company.
(c) The Board may delegate administration of the Plan to a
committee or committees ("Committee") of one or more members of the Board. In
the discretion of the Board, a Committee may consist solely of two or more
Outside Directors, in accordance with Code Section 162(m), or solely of two or
more Non-Employee Directors, in accordance with Rule 16(b)-3. If
administration is delegated to a Committee, the Committee shall have, in
connection
4.
<PAGE> 5
with the administration of the Plan, the powers theretofore possessed by the
Board (and references in this Plan to the Board shall thereafter be to the
Committee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. Notwithstanding anything in this Section 3 to the
contrary, the Board or the Committee may delegate to a committee of one or more
members of the Board the authority to grant Stock Awards to eligible persons
who (1) are not then subject to Section 16 of the Exchange Act and/or (2) are
either (i) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Stock Award,
or (ii) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code.
(d) Any requirement that an administrator of the Plan be a
Disinterested Person shall not apply if the Board or the Committee expressly
declares that such requirement shall not apply. Any Disinterested Person shall
otherwise comply with the requirements of Rule 16b-3.
4. SHARES SUBJECT TO THE PLAN.
(a) Subject to the provisions of Section 11 relating to
adjustments upon changes in stock, the stock that may be issued pursuant to
Stock Awards shall not exceed in the aggregate Five Hundred Thousand (500,000)
shares of the Company's common stock. If any Stock Award shall for any reason
expire or otherwise terminate, in whole or in part, without having been
exercised in full, the stock not acquired under such Stock Award shall revert
to and again become available for issuance under the Plan.
(b) The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.
5. ELIGIBILITY.
(a) Incentive Stock Options may be granted only to Employees.
Stock Awards other than Incentive Stock Options may be granted only to
Employees, Directors or Consultants.
(b) No person shall be eligible for the grant of an Incentive
Stock Option if, at the time of grant, such person owns (or is deemed to own
pursuant to Section 424(d) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of any of its Affiliates unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of such stock at
the date of grant and the Incentive Stock Option is not exercisable after the
expiration of five (5) years from the date of grant.
(c) Subject to the provisions of Section 11 relating to
adjustments upon changes in stock, no person shall be eligible to be granted
Options covering more than One Hundred Thousand (100,000) shares of the
Company's common stock in any calendar year.
5.
<PAGE> 6
6. OPTION PROVISIONS.
Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:
(a) TERM. No Option shall be exercisable after the expiration of
ten (10) years from the date it was granted.
(b) PRICE. The exercise price of each Incentive Stock Option
shall be not less than one hundred percent (100%) of the Fair Market Value of
the stock subject to the Option on the date the Option is granted. The
exercise price of each Nonstatutory Stock Option shall not be less than
eighty-five percent (85%) of the Fair Market Value of the stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of
Section 424(a) of the Code.
(c) CONSIDERATION. The purchase price of stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board or the Committee, at the time of the grant of an
Incentive Stock Option or either at the time of the grant or exercise of a
Nonstatutory Stock Option, (A) by delivery to the Company of other common stock
of the Company, (B) according to a deferred payment (provided, however, that
payment of the Common Stock's "par value", as defined in the Delaware General
Corporation Law, shall not be made by deferred payment) or other arrangement
(which may include, without limiting the generality of the foregoing, the use
of other common stock of the Company) with the person to whom the Option is
granted or to whom the Option is transferred pursuant to subsection 6(d), or
(C) in any other form of legal consideration that may be acceptable to the
Board.
In the case of any deferred payment arrangement, interest shall be
payable at least annually and shall be charged at the minimum rate of interest
necessary to avoid the treatment as interest, under any applicable provisions
of the Code, of any amounts other than amounts stated to be interest under the
deferred payment arrangement.
(d) TRANSFERABILITY. An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution, and
shall be exercisable during the lifetime of the person to whom the Incentive
Stock Option is granted only by such person. A Nonstatutory Stock Option shall
not be transferable except by will or by the laws of descent and distribution
or pursuant to a domestic relations order satisfying the requirements of Rule
16 of the Exchange Act, and shall be exercisable during the lifetime of the
person to whom the Option is granted only by such person or any transferee
pursuant to a domestic relations order. Notwithstanding
6.
<PAGE> 7
the foregoing, the person to whom the Option is granted may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Optionee, shall thereafter
be entitled to exercise the Option.
(e) VESTING. The total number of shares of stock subject to an
Option may, but need not, be allotted in periodic installments (which may, but
need not, be equal). The Option Agreement may provide that from time to time
during each of such installment periods, the Option may become exercisable
("vest") with respect to some or all of the shares allotted to that period, and
may be exercised with respect to some or all of the shares allotted to such
period and/or any prior period as to which the Option became vested but was not
fully exercised. The Option may be subject to such other terms and conditions
on the time or times when it may be exercised (which may be based on
performance or other criteria) as the Board may deem appropriate. The
provisions of this subsection 6(e) are subject to any Option provisions
governing the minimum number of shares as to which an Option may be exercised.
(f) TERMINATION OF EMPLOYMENT OR RELATIONSHIP AS A DIRECTOR OR
CONSULTANT. In the event an Optionee's Continuous Status as an Employee,
Director or Consultant terminates (other than upon the Optionee's death or
disability), the Optionee may exercise his or her Option (to the extent that
the Optionee was entitled to exercise it at the date of termination) but only
within such period of time ending on the earlier of (i) the date three (3)
months after the termination of the Optionee's Continuous Status as an
Employee, Director or Consultant (or such longer or shorter period specified in
the Option Agreement), or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionee does not
exercise his or her Option within the time specified in the Option Agreement,
the Option shall terminate, and the shares covered by such Option shall revert
to and again become available for issuance under the Plan.
An Optionee's Option Agreement may also provide that if the exercise
of the Option following the termination of the Optionee's Continuous Status as
an Employee, Director or Consultant (other than upon the Optionee's death or
disability) would be prohibited at any time solely because the issuance of
shares would violate the registration requirements under the Securities Act,
then the Option shall terminate on the earlier of (i) the expiration of the
term of the Option set forth in the first paragraph of this subsection 6(f), or
(ii) the expiration of a period of three (3) months after the termination of
the Optionee's Continuous Status as an Employee, Director or Consultant during
which the exercise of the Option would not be in violation of such registration
requirements.
(g) DISABILITY OF OPTIONEE. In the event an Optionee's Continuous
Status as an Employee, Director or Consultant terminates as a result of the
Optionee's disability, the Optionee may exercise his or her Option (to the
extent that the Optionee was entitled to exercise it at the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement), or (ii) the expiration of
the term of the Option as set forth in the Option Agreement. If, at the date
of termination, the Optionee is not entitled to exercise his or her
7.
<PAGE> 8
entire Option, the shares covered by the unexercisable portion of the Option
shall revert to and again become available for issuance under the Plan. If,
after termination, the Optionee does not exercise his or her Option within the
time specified herein, the Option shall terminate, and the shares covered by
such Option shall revert to and again become available for issuance under the
Plan.
(h) DEATH OF OPTIONEE. In the event of the death of an Optionee
during, or within a period specified in the Option after the termination of,
the Optionee's Continuous Status as an Employee, Director or Consultant, the
Option may be exercised (to the extent the Optionee was entitled to exercise
the Option at the date of death) by the Optionee's estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the option upon the Optionee's death pursuant to
subsection 6(d), but only within the period ending on the earlier of (i) the
date eighteen (18) months following the date of death (or such longer or
shorter period specified in the Option Agreement), or (ii) the expiration of
the term of such Option as set forth in the Option Agreement. If, at the time
of death, the Optionee was not entitled to exercise his or her entire Option,
the shares covered by the unexercisable portion of the Option shall revert to
and again become available for issuance under the Plan. If, after death, the
Option is not exercised within the time specified herein, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.
(i) EARLY EXERCISE. The Option may, but need not, include a
provision whereby the Optionee may elect at any time while an Employee,
Director or Consultant to exercise the Option as to any part or all of the
shares subject to the Option prior to the full vesting of the Option. Any
unvested shares so purchased may be subject to a repurchase right in favor of
the Company or to any other restriction the Board determines to be appropriate.
(j) RE-LOAD OPTIONS. Without in any way limiting the authority of
the Board or Committee to make or not to make grants of Options hereunder, the
Board or Committee shall have the authority (but not an obligation) to include
as part of any Option Agreement a provision entitling the Optionee to a further
Option (a "Re-Load Option") in the event the Optionee exercises the Option
evidenced by the Option agreement, in whole or in part, by surrendering other
shares of Common Stock in accordance with this Plan and the terms and
conditions of the Option Agreement. Any such Re-Load Option (i) shall be for a
number of shares equal to the number of shares surrendered as part or all of
the exercise price of such Option; (ii) shall have an expiration date which is
the same as the expiration date of the Option the exercise of which gave rise
to such Re-Load Option; and (iii) shall have an exercise price which is equal
to one hundred percent (100%) of the Fair Market Value of the Common Stock
subject to the Re-Load Option on the date of exercise of the original Option
or, in the case of a Re-Load Option which is an Incentive Stock Option and
which is granted to a 10% stockholder (as described in subsection 5(c)), shall
have an exercise price which is equal to one hundred ten percent (110%) of the
Fair Market Value of the stock subject to the Re-Load Option on the date of
exercise of the original Option.
8.
<PAGE> 9
Any such Re-Load Option may be an Incentive Stock Option or a
Nonstatutory Stock Option, as the Board or Committee may designate at the time
of the grant of the original Option; provided, however, that the designation of
any Re-Load Option as an Incentive Stock Option shall be subject to the one
hundred thousand dollar ($100,000) annual limitation on exercisability of
Incentive Stock Options described in subsection 12(e) of the Plan and in
Section 422(d) of the Code. There shall be no Re-Load Options on a Re-Load
Option. Any such Re-Load Option shall be subject to the availability of
sufficient shares under subsection 4(a) and shall be subject to such other
terms and conditions as the Board or Committee may determine.
7. CANCELLATION AND RE-GRANT OF OPTIONS.
(a) The Board or the Committee shall have the authority to effect,
at any time and from time to time, (i) the repricing of any outstanding Options
under the Plan and/or (ii) with the consent any adversely affected holders of
Options, the cancellation of any outstanding Options under the Plan and the
grant in substitution therefor of new Options under the Plan covering the same
or different numbers of shares of stock, but having an exercise price per share
not less than one hundred percent (100%) of the Fair Market Value in the case
of an Incentive Stock Option and not less than eighty-five percent (85%) of the
Fair Market Value in the case of a Nonstatutory Stock Option or, in the case of
an Incentive Stock Option granted to a 10% stockholder (as described in
subsection 5(c)), not less than one hundred ten percent (110%) of the Fair
Market Value) per share of stock on the new grant date.
(b) Shares subject to an Option canceled under this Section 7
shall continue to be counted against the maximum award of Options permitted to
be granted pursuant to subsection 5(d) of the Plan. The repricing of an Option
under this Section 7, resulting in a reduction of the exercise price, shall be
deemed to be a cancellation of the original Option and the grant of a
substitute Option; in the event of such repricing, both the original and the
substituted Options shall be counted against the maximum awards of Options
permitted to be granted pursuant to subsection 5(d) of the Plan. The
provisions of this subsection 7(b) shall be applicable only to the extent
required by Section 162(m) of the Code.
8. COVENANTS OF THE COMPANY.
(a) During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of stock required to satisfy such
Stock Awards.
(b) The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be
required to issue and sell shares of stock upon exercise of the Stock Award;
provided, however, that this undertaking shall not require the Company to
register under the Securities Act either the Plan, any Stock Award or any stock
issued or issuable pursuant to any such Stock Award. If, after reasonable
efforts, the Company is unable to obtain from any such regulatory commission or
agency the authority which counsel for the Company deems necessary for the
lawful issuance and sale of stock under
9.
<PAGE> 10
the Plan, the Company shall be relieved from any liability for failure to issue
and sell stock upon exercise of such Stock Awards unless and until such
authority is obtained.
9. USE OF PROCEEDS FROM STOCK.
Proceeds from the sale of stock pursuant to Stock Awards shall
constitute general funds of the Company.
10. MISCELLANEOUS.
(a) The Board shall have the power to accelerate the time at which
a Stock Award may first be exercised or the time during which a Stock Award or
any part thereof will vest pursuant to subsection 6(e), notwithstanding the
provisions in the Stock Award stating the time at which it may first be
exercised or the time during which it will vest.
(b) Neither an Employee, Director or Consultant nor any person to
whom a Stock Award is transferred under subsection 6(d) shall be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any
shares subject to such Stock Award unless and until such person has satisfied
all requirements for exercise of the Stock Award pursuant to its terms.
(c) Throughout the term of any Stock Award, the Company shall
deliver to the holder of such Stock Award such financial and other information
regarding the Company as shall be required under the provisions of applicable
securities laws.
(d) Nothing in the Plan or any instrument executed or Stock Award
granted pursuant thereto shall confer upon any Employee, Director, Consultant
or other holder of Stock Awards any right to continue in the employ of the
Company or any Affiliate (or to continue acting as a Director or Consultant) or
shall affect the right of the Company or any Affiliate to terminate the
employment or relationship as a Director or Consultant of any Employee,
Director, Consultant or other holder of Stock Awards with or without cause.
(e) To the extent that the aggregate Fair Market Value (determined
at the time of grant) of stock with respect to which Incentive Stock Options
granted after 1986 are exercisable for the first time by any Optionee during
any calendar year under all plans of the Company and its Affiliates exceeds one
hundred thousand dollars ($100,000), the Options or portions thereof which
exceed such limit (according to the order in which they were granted) shall be
treated as Nonstatutory Stock Options.
(f) The Company may require any person to whom a Stock Award is
granted, or any person to whom a Stock Award is transferred pursuant to
subsection 6(d), as a condition of exercising or acquiring stock under any
Stock Award, (1) to give written assurances satisfactory to the Company as to
such person's knowledge and experience in financial and business matters and/or
to employ a purchaser representative reasonably satisfactory to the Company who
is knowledgeable and experienced in financial and business matters, and that he
or she is capable of
10.
<PAGE> 11
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (2) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock
subject to the Stock Award for such person's own account and not with any
present intention of selling or otherwise distributing the stock. The
foregoing requirements, and any assurances given pursuant to such requirements,
shall be inoperative if (i) the issuance of the shares upon the exercise or
acquisition of stock under the Stock Award has been registered under a then
currently effective registration statement under the Securities Act or (ii) as
to any particular requirement, a determination is made by counsel for the
Company that such requirement need not be met in the circumstances under the
then applicable securities laws. The Company may, upon advice of counsel to
the Company, place legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order to comply with applicable
securities laws, including, but not limited to, legends restricting the
transfer of the stock.
(g) To the extent provided by the terms of a Stock Award
Agreement, the person to whom a Stock Award is granted may satisfy any federal,
state or local tax withholding obligation relating to the exercise or
acquisition of stock under a Stock Award by any of the following means or by a
combination of such means: (1) tendering a cash payment; (2) authorizing the
Company to withhold shares from the shares of the common stock otherwise
issuable to the participant as a result of the exercise or acquisition of stock
under the Stock Award; or (3) delivering to the Company owned and unencumbered
shares of the common stock of the Company.
11. ADJUSTMENTS UPON CHANGES IN STOCK.
(a) If any change is made in the stock subject to the Plan or
subject to any Stock Award without receipt of consideration by the Company
(through merger, consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change
in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the
class(es) and maximum number of shares subject to the Plan pursuant to
subsection 4(a) and the maximum number of shares subject to award to any person
during any calendar year pursuant to subsection 5(d), and the outstanding Stock
Awards will be appropriately adjusted in the class(es) and number of shares and
price per share of stock subject to such outstanding Stock Awards. Such
adjustments shall be made by the Board or the Committee, the determination of
which shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a "transaction
not involving the receipt of consideration by the Company".)
(b) In the event of: (1) a dissolution, liquidation or sale of
substantially all of the assets of the Company; (2) a merger or consolidation
in which the Company is not the surviving corporation; or (3) a reverse merger
in which the Company is the surviving corporation but the shares of the
Company's common stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of
securities, cash or
11.
<PAGE> 12
otherwise, then to the extent permitted by applicable law: (i) any surviving
corporation or a parent of such surviving corporation shall assume any Stock
Awards outstanding under the Plan or shall substitute similar Stock Awards for
those outstanding under the Plan, or (ii) such Stock Awards shall continue in
full force and effect. In the event any surviving corporation or its parent
refuses to assume or continue such Stock Awards, or to substitute similar
options for those outstanding under the Plan, then, with respect to Stock
Awards held by persons then performing services as Employees, Directors or
Consultants, the time during which such Stock Awards may be exercised shall be
accelerated and the Stock Awards terminated if not exercised prior to such
event.
12. AMENDMENT OF THE PLAN OR STOCK AWARDS.
(a) The Board at any time, and from time to time, may amend the
Plan. However, except as provided in Section 12 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company to the extent stockholder approval is necessary for
the Plan to satisfy the requirements of Section 422 of the Code, Rule 16b-3 or
any Nasdaq or securities exchange listing requirements.
(b) The Board may in its sole discretion submit any other
amendment to the Plan for stockholder approval, including, but not limited to,
amendments to the Plan intended to satisfy the requirements of Section 162(m)
of the Code and the regulations promulgated thereunder regarding the exclusion
of performance-based compensation from the limit on corporate deductibility of
compensation paid to certain executive officers.
(c) It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible
Employees, Directors or Consultants with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated
thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.
(d) Rights under any Stock Award granted before amendment of the
Plan shall not be impaired by any amendment of the Plan unless (i) the Company
requests the consent of the person to whom the Stock Award was granted and (ii)
such person consents in writing.
(e) The Board at any time, and from time to time, may amend the
terms of any one or more Stock Awards; provided, however, that the rights under
any Stock Award shall not be impaired by any such amendment unless (i) the
Company requests the consent of the person to whom the Stock Award was granted
and (ii) such person consents in writing.
13. TERMINATION OR SUSPENSION OF THE PLAN.
(a) The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on March 29, 2005, which
shall be within ten (10) years from the date the Plan is adopted by the Board
or approved by the stockholders of the Company,
12.
<PAGE> 13
whichever is earlier. No Stock Awards may be granted under the Plan while the
Plan is suspended or after it is terminated.
(b) Rights and obligations under any Stock Award granted while the
Plan is in effect shall not be impaired by suspension or termination of the
Plan, except with the consent of the person to whom the Stock Award was
granted.
14. EFFECTIVE DATE OF PLAN.
The Plan shall become effective as determined by the Board, but no
Stock Awards granted under the Plan shall be exercised unless and until the
Plan has been approved by the stockholders of the Company, which approval shall
be within twelve (12) months before or after the date the Plan is adopted by
the Board.
13.
<PAGE> 1
EXHIBIT 10.3
INTERACTIVE GROUP, INC.
EMPLOYEE STOCK PURCHASE PLAN
ADOPTED DECEMBER 21, 1995
AMENDED MARCH 21, 1997
AMENDED JUNE 3, 1997
1. PURPOSE.
(a) The purpose of the Employee Stock Purchase Plan (the "Plan")
is to provide a means by which employees of Interactive Group, Inc., a Delaware
corporation (the "Company"), and its Affiliates, as defined in subparagraph
1(b), which are designated as provided in subparagraph 2(b), may be given an
opportunity to purchase stock of the Company.
(b) The word "Affiliate" as used in the Plan means any parent
corporation or subsidiary corporation of the Company, as those terms are
defined in Sections 424(e) and (f), respectively, of the Internal Revenue Code
of 1986, as amended (the "Code").
(c) The Company, by means of the Plan, seeks to retain the
services of its employees, to secure and retain the services of new employees,
and to provide incentives for such persons to exert maximum efforts for the
success of the Company.
(d) The Company intends that the rights to purchase stock of the
Company granted under the Plan be considered options issued under an "employee
stock purchase plan" as that term is defined in Section 423(b) of the Code.
2. ADMINISTRATION.
(a) The Plan shall be administered by the Board of Directors (the
"Board") of the Company unless and until the Board delegates administration to
a Committee, as provided in subparagraph 2(c). Whether or not the Board has
delegated administration, the Board shall have the final power to determine all
questions of policy and expediency that may arise in the administration of the
Plan.
(b) The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:
(i) To determine when and how rights to purchase stock of
the Company shall be granted and the provisions of each offering of such rights
(which need not be identical).
1.
<PAGE> 2
(ii) To designate from time to time which Affiliates of
the Company shall be eligible to participate in the Plan.
(iii) To construe and interpret the Plan and rights granted
under it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan, in a manner and to the extent it
shall deem necessary or expedient to make the Plan fully effective.
(iv) To amend the Plan as provided in paragraph 13.
(v) Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best
interests of the Company and its Affiliates and to carry out the intent that
the Plan be treated as an "employee stock purchase plan" within the meaning of
Section 423 of the Code.
(c) The Board may delegate administration of the Plan to a
Committee composed of not fewer than two (2) members of the Board (the
"Committee") constituted in accordance with the requirements of Rule 16b-3
("Rule 16b-3") under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest
in the Board the administration of the Plan.
3. SHARES SUBJECT TO THE PLAN.
(a) Subject to the provisions of paragraph 12 relating to
adjustments upon changes in stock, the stock that may be sold pursuant to
rights granted under the Plan shall not exceed in the aggregate two hundred
thousand (200,000) shares of the Company's common stock (the "Common Stock").
If any right granted under the Plan shall for any reason terminate without
having been exercised, the Common Stock not purchased under such right shall
again become available for the Plan.
(b) The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.
4. GRANT OF RIGHTS; OFFERING.
The Board or the Committee may from time to time grant or provide for
the grant of rights to purchase Common Stock of the Company under the Plan to
eligible employees (an "Offering") on a date or dates (the "Offering Date(s)")
selected by the Board or the Committee. Each Offering shall be in such form
and shall contain such terms and conditions as the Board or the Committee shall
deem appropriate, which shall comply with the requirements of Section
2.
<PAGE> 3
423(b)(5) of the Code that all employees granted rights to purchase stock under
the Plan shall have the same rights and privileges. The terms and conditions
of an Offering shall be incorporated by reference into the Plan and treated as
part of the Plan. The provisions of separate Offerings need not be identical,
but each Offering shall include (through incorporation of the provisions of
this Plan by reference in the document comprising the Offering or otherwise)
the period during which the Offering shall be effective, which period shall not
exceed twenty-seven (27) months beginning with the Offering Date, and the
substance of the provisions contained in paragraphs 5 through 8, inclusive.
5. ELIGIBILITY.
(a) Rights may be granted only to employees of the Company or, as
the Board or the Committee may designate as provided in subparagraph 2(b), to
employees of any Affiliate of the Company. Except as provided in subparagraph
5(b), an employee of the Company or any Affiliate shall not be eligible to be
granted rights under the Plan, unless, on the Offering Date, such employee has
been in the employ of the Company or any Affiliate for such continuous period
preceding such grant as the Board or the Committee may require, but in no event
shall the required period of continuous employment be equal to or greater than
two (2) years. In addition, unless otherwise determined by the Board or the
Committee and set forth in the terms of the applicable Offering, no employee of
the Company or any Affiliate shall be eligible to be granted rights under the
Plan, unless, on the Offering Date, such employee's customary employment with
the Company or such Affiliate is for at least twenty (20) hours per week and at
least five (5) months per calendar year.
(b) The Board or the Committee may provide that, each person who,
during the course of an Offering, first becomes an eligible employee of the
Company or designated Affiliate will, on a date or dates specified in the
Offering which coincides with the day on which such person becomes an eligible
employee or occurs thereafter, receive a right under that Offering, which right
shall thereafter be deemed to be a part of that Offering. Such right shall
have the same characteristics as any rights originally granted under that
Offering, as described herein, except that:
(i) the date on which such right is granted shall be the
"Offering Date" of such right for all purposes, including determination of the
exercise price of such right;
(ii) the period of the Offering with respect to such right
shall begin on its Offering Date and end coincident with the end of such
Offering; and
(iii) the Board or the Committee may provide that if such
person first becomes an eligible employee within a specified period of time
before the end of the Offering, he or she will not receive any right under that
Offering.
3.
<PAGE> 4
(c) No employee shall be eligible for the grant of any rights
under the Plan if, immediately after any such rights are granted, such employee
owns stock possessing five percent (5%) or more of the total combined voting
power or value of all classes of stock of the Company or of any Affiliate. For
purposes of this subparagraph 5(c), the rules of Section 424(d) of the Code
shall apply in determining the stock ownership of any employee, and stock which
such employee may purchase under all outstanding rights and options shall be
treated as stock owned by such employee.
(d) An eligible employee may be granted rights under the Plan only
if such rights, together with any other rights granted under "employee stock
purchase plans" of the Company and any Affiliates, as specified by Section
423(b)(8) of the Code, do not permit such employee's rights to purchase stock
of the Company or any Affiliate to accrue at a rate which exceeds twenty-five
thousand dollars ($25,000) of fair market value of such stock (determined at
the time such rights are granted) for each calendar year in which such rights
are outstanding at any time.
(e) Officers of the Company and any designated Affiliate shall be
eligible to participate in Offerings under the Plan, provided, however, that
the Board may provide in an Offering that certain employees who are highly
compensated employees within the meaning of Section 423(b)(4)(D) of the Code
shall not be eligible to participate.
6. RIGHTS; PURCHASE PRICE.
(a) On each Offering Date, each eligible employee, pursuant to an
Offering made under the Plan, shall be granted the right to purchase up to the
number of shares of Common Stock of the Company purchasable with a percentage
designated by the Board or the Committee not exceeding fifteen percent (15%) of
such employee's Earnings (as defined in subparagraph 7(a)) during the period
which begins on the Offering Date (or such later date as the Board or the
Committee determines for a particular Offering) and ends on the date stated in
the Offering, which date shall be no later than the end of the Offering. The
Board or the Committee shall establish one or more dates during an Offering
(the "Purchase Date(s)") on which rights granted under the Plan shall be
exercised and purchases of Common Stock carried out in accordance with such
Offering.
(b) In connection with each Offering made under the Plan, the
Board or the Committee may specify a maximum number of shares that may be
purchased by any employee as well as a maximum aggregate number of shares that
may be purchased by all eligible employees pursuant to such Offering. In
addition, in connection with each Offering that contains more than one Purchase
Date, the Board or the Committee may specify a maximum aggregate number of
shares which may be purchased by all eligible employees on any given Purchase
Date under the Offering. If the aggregate purchase of shares upon exercise of
rights granted under the Offering would exceed any such maximum aggregate
number, the Board or the Committee shall make a pro rata allocation of the
shares available in as nearly a uniform manner as shall be practicable and as
it shall deem to be equitable.
4.
<PAGE> 5
(c) The purchase price of stock acquired pursuant to rights
granted under the Plan shall be not less than the lesser of:
(i) an amount equal to eighty-five percent (85%) of the
fair market value of the stock on the Offering Date; or
(ii) an amount equal to eighty-five percent (85%) of the
fair market value of the stock on the Purchase Date.
7. PARTICIPATION; WITHDRAWAL; TERMINATION.
(a) An eligible employee may become a participant in the Plan
pursuant to an Offering by delivering a participation agreement to the Company
within the time specified in the Offering, in such form as the Company
provides. Each such agreement shall authorize payroll deductions of up to the
maximum percentage specified by the Board or the Committee of such employee's
Earnings during the Offering. "Earnings" is defined as an employee's regular
salary or wages (including amounts thereof elected to be deferred by the
employee, that would otherwise have been paid, under any arrangement
established by the Company that is intended to comply with Section 125, Section
401(k), Section 402(h) or Section 403(b) of the Code or that provides
non-qualified deferred compensation), which shall include overtime pay, bonuses
and commissions, but shall exclude profit sharing, other remuneration paid
directly to the employee, the cost of employee benefits paid for by the Company
or an Affiliate, education or tuition reimbursements, imputed income arising
under any group insurance or benefit program, traveling expenses, business and
moving expense reimbursements, income received in connection with stock
options, contributions made by the Company or an Affiliate under any employee
benefit plan, and similar items of compensation, as determined by the Board or
the Committee. The payroll deductions made for each participant shall be
credited to an account for such participant under the Plan and shall be
deposited with the general funds of the Company. A participant may reduce
(including to zero) or increase such payroll deductions, and an eligible
employee may begin such payroll deductions, after the beginning of any Offering
only as provided for in the Offering. A participant may make additional
payments into his or her account only if specifically provided for in the
Offering and only if the participant has not had the maximum amount withheld
during the Offering.
(b) At any time during an Offering, a participant may terminate
his or her payroll deductions under the Plan and withdraw from the Offering by
delivering to the Company a notice of withdrawal in such form as the Company
provides. Such withdrawal may be elected at any time prior to the end of the
Offering except as provided by the Board or the Committee in the Offering.
Upon such withdrawal from the Offering by a participant, the Company shall
distribute to such participant all of his or her accumulated payroll deductions
(reduced to the extent, if any, such deductions have been used to acquire stock
for the participant) under the Offering, without interest, and such
participant's interest in that Offering shall be automatically
5.
<PAGE> 6
terminated. A participant's withdrawal from an Offering will have no effect
upon such participant's eligibility to participate in any other Offerings under
the Plan but such participant will be required to deliver a new participation
agreement in order to participate in subsequent Offerings under the Plan.
(c) Rights granted pursuant to any Offering under the Plan shall
terminate immediately upon cessation of any participating employee's employment
with the Company and any designated Affiliate, for any reason, and the Company
shall distribute to such terminated employee all of his or her accumulated
payroll deductions (reduced to the extent, if any, such deductions have been
used to acquire stock for the terminated employee), under the Offering, without
interest.
(d) Rights granted under the Plan shall not be transferable by a
participant otherwise than by will or the laws of descent and distribution, or
by a beneficiary designation as provided in paragraph 14 and, otherwise during
his or her lifetime, shall be exercisable only by the person to whom such
rights are granted.
8. EXERCISE.
(a) On each Purchase Date specified therefor in the relevant
Offering, each participant's accumulated payroll deductions and other
additional payments specifically provided for in the Offering (without any
increase for interest) will be applied to the purchase of whole shares of stock
of the Company, up to the maximum number of shares permitted pursuant to the
terms of the Plan and the applicable Offering, at the purchase price specified
in the Offering. No fractional shares shall be issued upon the exercise of
rights granted under the Plan. The amount, if any, of accumulated payroll
deductions remaining in each participant's account after the purchase of shares
which is less than the amount required to purchase one share of stock on the
final Purchase Date of an Offering shall be held in each such participant's
account for the purchase of shares under the next Offering under the Plan,
unless such participant withdraws from such next Offering, as provided in
subparagraph 7(b), or is no longer eligible to be granted rights under the
Plan, as provided in paragraph 5, in which case such amount shall be
distributed to the participant after such final Purchase Date, without
interest. The amount, if any, of accumulated payroll deductions remaining in
any participant's account after the purchase of shares which is equal to the
amount required to purchase whole shares of stock on the final Purchase Date of
an Offering shall be distributed in full to the participant after such Purchase
Date, without interest.
(b) No rights granted under the Plan may be exercised to any
extent unless the shares to be issued upon such exercise under the Plan
(including rights granted thereunder) are covered by an effective registration
statement pursuant to the Securities Act of 1933, as amended (the "Securities
Act") and the Plan is in material compliance with all applicable state, foreign
and other securities and other laws applicable to the Plan. If on a Purchase
Date in any Offering hereunder the Plan is not so registered or in such
compliance, no rights granted under the Plan or
6.
<PAGE> 7
any Offering shall be exercised on such Purchase Date, and the Purchase Date
shall be delayed until the Plan is subject to such an effective registration
statement and such compliance, except that the Purchase Date shall not be
delayed more than twelve (12) months and the Purchase Date shall in no event be
more than twenty-seven (27) months from the Offering Date. If on the Purchase
Date of any Offering hereunder, as delayed to the maximum extent permissible,
the Plan is not registered and in such compliance, no rights granted under the
Plan or any Offering shall be exercised and all payroll deductions accumulated
during the Offering (reduced to the extent, if any, such deductions have been
used to acquire stock) shall be distributed to the participants, without
interest.
9. COVENANTS OF THE COMPANY.
(a) During the terms of the rights granted under the Plan, the
Company shall keep available at all times the number of shares of stock
required to satisfy such rights.
(b) The Company shall seek to obtain from each federal, state,
foreign or other regulatory commission or agency having jurisdiction over the
Plan such authority as may be required to issue and sell shares of stock upon
exercise of the rights granted under the Plan. If, after reasonable efforts,
the Company is unable to obtain from any such regulatory commission or agency
the authority which counsel for the Company deems necessary for the lawful
issuance and sale of stock under the Plan, the Company shall be relieved from
any liability for failure to issue and sell stock upon exercise of such rights
unless and until such authority is obtained.
10. USE OF PROCEEDS FROM STOCK.
Proceeds from the sale of stock pursuant to rights granted under the
Plan shall constitute general funds of the Company.
11. RIGHTS AS A SHAREHOLDER.
A participant shall not be deemed to be the holder of, or to have any
of the rights of a holder with respect to, any shares subject to rights granted
under the Plan unless and until the participant's shareholdings acquired upon
exercise of rights under the Plan are recorded in the books of the Company.
12. ADJUSTMENTS UPON CHANGES IN STOCK.
(a) If any change is made in the stock subject to the Plan, or
subject to any rights granted under the Plan (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company), the Plan and
outstanding rights will be appropriately adjusted in the class(es) and maximum
number of shares subject to
7.
<PAGE> 8
the Plan and the class(es) and number of shares and price per share of stock
subject to outstanding rights. Such adjustments shall be made by the Board or
the Committee, the determination of which shall be final, binding and
conclusive. (The conversion of any convertible securities of the Company shall
not be treated as a "transaction not involving the receipt of consideration by
the Company.")
(b) In the event of: (1) a dissolution or liquidation of the
Company; (2) a merger or consolidation in which the Company is not the
surviving corporation; (3) a reverse merger in which the Company is the
surviving corporation but the shares of the Company's Common Stock outstanding
immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise; or (4)
any other capital reorganization in which more than fifty percent (50%) of the
shares of the Company entitled to vote are exchanged, then, as determined by
the Board in its sole discretion (i) any surviving corporation may assume
outstanding rights or substitute similar rights for those under the Plan, (ii)
such rights may continue in full force and effect, or (iii) participants'
accumulated payroll deductions may be used to purchase Common Stock immediately
prior to the transaction described above and the participants' rights under the
ongoing Offering terminated.
13. AMENDMENT OF THE PLAN.
(a) The Board at any time, and from time to time, may amend the
Plan. However, except as provided in paragraph 12 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
shareholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will:
(i) Increase the number of shares reserved for rights
under the Plan;
(ii) Modify the provisions as to eligibility for
participation in the Plan (to the extent such modification requires shareholder
approval in order for the Plan to obtain employee stock purchase plan treatment
under Section 423 of the Code or to comply with the requirements of Rule 16b-3;
or
(iii) Modify the Plan in any other way if such modification
requires shareholder approval in order for the Plan to obtain employee stock
purchase plan treatment under Section 423 of the Code or to comply with the
requirements of Rule 16b-3.
It is expressly contemplated that the Board may amend the Plan in any respect
the Board deems necessary or advisable to provide eligible employees with the
maximum benefits provided or to be provided under the provisions of the Code
and the regulations promulgated thereunder relating to employee stock purchase
plans and/or to bring the Plan and/or rights granted under it into compliance
therewith.
8.
<PAGE> 9
(b) Rights and obligations under any rights granted before
amendment of the Plan shall not be impaired by any amendment of the Plan,
except with the consent of the person to whom such rights were granted, or
except as necessary to comply with any laws or governmental regulations, or
except as necessary to ensure that the Plan and/or rights granted under the
Plan comply with the requirements of Section 423 of the Code.
14. DESIGNATION OF BENEFICIARY.
(a) A participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the participant's account
under the Plan in the event of such participant's death subsequent to the end
of an Offering but prior to delivery to the participant of such shares and
cash. In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant's account under the
Plan in the event of such participant's death during an Offering.
(b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its sole discretion, may
deliver such shares and/or cash to the spouse or to any one or more dependents
or relatives of the participant, or if no spouse, dependent or relative is
known to the Company, then to such other person as the Company may designate.
15. TERMINATION OR SUSPENSION OF THE PLAN.
(a) The Board in its discretion, may suspend or terminate the Plan
at any time. No rights may be granted under the Plan while the Plan is
suspended or after it is terminated.
(b) Rights and obligations under any rights granted while the Plan
is in effect shall not be altered or impaired by suspension or termination of
the Plan, except as expressly provided in the Plan or with the consent of the
person to whom such rights were granted, or except as necessary to comply with
any laws or governmental regulation, or except as necessary to ensure that the
Plan and/or rights granted under the Plan comply with the requirements of
Section 423 of the Code.
16. EFFECTIVE DATE OF PLAN.
The Plan shall become effective on December 21, 1995 (the "Effective
Date"), but no rights granted under the Plan shall be exercised unless and
until the Plan has been approved by the shareholders of the Company within
twelve (12) months before or after the date the Plan is adopted by the Board or
the Committee, which date may be prior to the Effective Date.
9.
<PAGE> 1
EXHIBIT 11.1
INTERACTIVE GROUP, INC.
STATEMENT OF COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
1997 1996 1997 1996
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net income $ 437 $ 453 $ 367 $ 895
====== ====== ====== ======
Computation of weighted average common and common equivalent
shares outstanding:
Primary
Weighted average shares outstanding 4,522 4,385 4,504 4,385
Stock options and warrants 57 42 50 45
------ ------ ------ ------
Weighted average common and common
equivalent shares outstanding 4,579 4,427 4,554 4,430
====== ====== ====== ======
Net income per common and
common share equivalents outstanding $ 0.10 $ 0.10 $ 0.08 $ 0.20
====== ====== ====== ======
</TABLE>
Fully dilutive effect of stock options on per share amounts for the three and
six month periods ended June 30, 1997 and 1996 has not been presented since any
reduction of less than 3 percent in the aggregate need not be considered as
dilution.
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,697
<SECURITIES> 0
<RECEIVABLES> 17,110
<ALLOWANCES> 446
<INVENTORY> 0
<CURRENT-ASSETS> 22,876
<PP&E> 8,226
<DEPRECIATION> 5,093
<TOTAL-ASSETS> 30,215
<CURRENT-LIABILITIES> 17,146
<BONDS> 0
0
0
<COMMON> 5
<OTHER-SE> 11,105
<TOTAL-LIABILITY-AND-EQUITY> 30,215
<SALES> 28,442
<TOTAL-REVENUES> 28,442
<CGS> 3,893
<TOTAL-COSTS> 13,553
<OTHER-EXPENSES> 14,116
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 168
<INCOME-PRETAX> 630
<INCOME-TAX> 263
<INCOME-CONTINUING> 367
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 367
<EPS-PRIMARY> .08
<EPS-DILUTED> .08
</TABLE>
