EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT, made effective as of the 30th day of April,
1997, by and between David R. Richard ("Executive") and NORSTAN, INC., a
Minnesota corporation (the "Company"),
W I T N E S S E T H:
WHEREAS, the Company will employ Executive as President and Chief Executive
Officer of Norstan, Inc., effective as of May 1, 1997;
WHEREAS, Executive's experience and knowledge are considered to be
necessary to the continued success of the Company's business;
WHEREAS, the Company desires to encourage the Executive's continued
dedication and attention to his assigned duties without distraction from
circumstances arising from a possible change in control of the Company;
WHEREAS, the Company wishes to enter into an agreement with Executive
governing the terms and conditions of his employment, and Executive is willing
to be employed on the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the premises, and of the mutual
covenants hereinafter set forth, the parties do hereby agree as follows:
1. EMPLOYMENT PERIOD. The Company agrees to employ Executive, and
Executive agrees to serve in the full-time employ of the Company, for the
period (the "Employment Period") beginning on May 1, 1997 and ending on April
30, 1999; PROVIDED, that on April 30, 1998, and on each April 30 thereafter
("Renewal Date"), the Employment Period shall automatically be extended to
the date which is 24 months after such Renewal Date unless, not later than
such Renewal Date, the Company gives Executive written notice that the
Employment Period shall not be so extended; PROVIDED FURTHER, that in the
event of a "Change in Control" (as defined in subparagraph 7.e. below), the
Employment Period shall automatically be extended to the date which is 36
months after the date on which the Change in Control occurs. Notwithstanding
the foregoing, in no event shall the Employment Period continue beyond the
earliest to occur of the date of Executive's 65th birthday, the date as of
which Executive's employment is terminated pursuant to paragraph 4 or
paragraph 7, or the date of the Executive's death.
2. DUTIES. During the Employment Period, Executive shall serve as
President and Chief Executive Officer of Norstan, Inc., or, except as
otherwise provided in this Agreement, in such other executive positions as
the Chairman of the Board of Directors of the Company shall from time to time
determine. Executive shall perform such executive and managerial duties
consistent with such positions as the Chairman of the Board of Directors of
the Company shall from time to time direct. Executive shall devote his best
efforts and all of his business time and attention (except for usual vacation
periods and reasonable periods of illness or other incapacity) to the
business of the Company and its subsidiaries.
3. COMPENSATION. During the Employment Period, Executive shall be
compensated as follows:
a. SALARY. Executive shall be paid a salary at a rate which is not
less than $275,000 per year, exclusive of bonuses, if any, which may from time
to time be awarded to Executive pursuant to any authorized bonus, incentive, or
similar plan maintained by the Company. Executive's salary shall be subject to
annual review and shall be paid in equal, semi-monthly installments.
b. EXPENSES. Executive shall be reimbursed for all reasonable
business expenses incurred in the performance of his duties pursuant to this
Agreement, to the extent such expenses are substantiated and are consistent with
the general policies of the Company and its subsidiaries relating to the
reimbursement of expenses of executive officers.
c. FRINGE BENEFITS. In addition to any other compensation provided
under this Agreement, Executive shall be entitled to participate, during the
Employment Period, in any and all pension, profit sharing, and other employee
benefit plans or fringe benefit programs which are from time to time maintained
by the Company for its executive officers, in accordance with the provisions of
such plans or programs as are from time to time in effect. These fringe
benefits include automobile, country club and moving expenses.
d. OTHER BENEFITS. Executive shall be granted stock options and
restricted stock awards in amounts consistent with his positions as President
and Chief Executive Officer of the Company. In addition although the parties do
not believe that Executive will suffer any loss by reason of his employment by
Company, Company and Executive agree to share in any such loss resulting from
the cancellation or rescission of certain stock options granted to Executive by
his current employer and to arrive at a method for apportioning any such loss.
e. DEDUCTIONS AND WITHHOLDING. All compensation and other benefits
payable to or on behalf of Executive pursuant to this Agreement shall be subject
to such deductions and withholding as may be agreed to by Executive or required
by applicable law.
4. DISABILITY. If, during the Employment Period, Executive shall become
incapacitated by accident or illness and, as determined under the Long-Term
Disability Plan of the Company, shall be unable to perform the duties of the
positions he then occupies for a period of 150 consecutive days, the Company
shall have the right to terminate the Employment Period effective at any time
after such 150 day period of disability by giving 30 days advance written notice
to Executive. If the Employment Period is thus terminated, Executive shall not
be entitled to receive any compensation or other benefits pursuant to this
Agreement, other than compensation or benefits accrued through the effective
date of such termination.
5. DEATH. If Executive shall die during the Employment Period without
having been notified, pursuant to subparagraph 7.a. below, of a breach of any
of the terms of this Agreement in any material respect, his base salary (at
the rate in effect at the time of his death) shall be continued for a period
of 12 months to the beneficiary named in the last written instrument
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signed by Executive for the purposes of this Agreement and received by the
Company prior to his death. If Executive fails to name a beneficiary, such
amounts shall be paid to his estate.
6. OTHER BENEFITS. The compensation provisions of this Agreement shall
be in addition to, and not in derogation or diminution of, any benefits that
Executive or his beneficiaries may be entitled to receive under the
provisions of any pension, profit sharing, disability, or other employee
benefit plan now or hereafter maintained by the Company.
7. TERMINATION.
a. FOR CAUSE BY COMPANY. The Company may terminate Executive's
employment for cause upon 60 days prior written notice to Executive. Such
notice shall specify in reasonable detail the nature of the cause and, during
such 60 day period, Executive shall have the opportunity to cure the stated
cause. If Executive fails to cure a stated cause, the Employment Period shall
terminate at the end of the 60 day notice period, but without prejudice to
Executive's right to contest the existence of any stated cause and/or to contest
the fact that the cause has not been cured. For the purposes of this Agreement,
cause shall mean any conduct by Executive involving an act or acts of dishonesty
on the part of the Executive constituting a felony and resulting or intended to
result directly or indirectly in gain or personal enrichment at the expense of
the Company, or any failure by Executive to substantially comply with the terms
of this Agreement in any material respect.
b. INELIGIBILITY. If the Company terminates Executive's
employment for cause, or if Executive voluntarily terminates his employment
under circumstances other than those specified in subparagraphs 7.c., or
14.a., Executive shall not be entitled to receive any compensation or other
benefits pursuant to this Agreement, other than compensation or benefits
accrued through the effective date of such termination.
c. ELIGIBILITY. If, after or due to a "Change in Control" (as such
term is defined in subparagraph 7.e. below), and prior to the expiration of the
then current extension of the Employment Period, (a) Executive voluntarily
terminates his employment (i) because he has been reassigned to a position of
lesser rank or status or because he has been transferred to a location which is
more than 25 miles from his previous principal place of employment, or because
his base salary or incentive compensation has been reduced, or because his
benefits have been reduced (unless such reduction is made uniformly in a plan of
general application to all of the Company's eligible employees); or (ii) for
Good Reason (as defined below); or (iii) if his health should become impaired to
an extent that makes his continued performance of his duties hereunder hazardous
to his physical or mental health or his life, provided that the Executive shall
have furnished the Company with a written statement from a qualified physician
to such effect and provided, further, that, at the Company's request, the
Executive shall submit to an examination by a physician selected by the Company
and such doctor shall have concurred in the conclusion of the Executive's
doctor; or (iv) for any reason in Executive's sole discretion at any time within
18 months after the date of a Change in Control of the Company by giving thirty
(30) days prior notice of his intention to terminate; or (b) the Company
terminates Executive's
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employment for reasons other than those specified in paragraph 4 or
subparagraph 7.a. of this Agreement, then Executive shall receive the
compensation and benefits set forth in paragraph 8 below.
(i) For purposes of this Agreement, "Good Reason" shall mean
(A) a failure by the Company to comply with any material provision of this
Agreement which has not been cured within ten (10) days after notice of such
noncompliance has been given by the Executive to the Company, or (B) any
purported termination of the Executive's employment which is not effected
pursuant to a notice of termination which notice shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated.
d. WITHOUT CAUSE BY COMPANY. If, other than caused by a Change in
Control, the Company terminates Executive's employment at any time prior to the
expiration of the initial or then current extension of the Employment Period for
reasons other than those specified in paragraph 4 or subparagraph 7.a. of this
Agreement, then Executive shall continue to receive his base salary and fringe
benefits (automobile, car phone and country club expense) for a period of 12
months.
e. CHANGE IN CONTROL, DEFINED. For the purposes of this Agreement, a
Change in Control shall be deemed to occur when and if, during the Employment
Period:
(i) any Person (meaning any individual, firm, corporation,
partnership, trust or other entity, and includes a "group" (as
that term is used in Sections 13(d) and 14(d) of the Act), but
excludes Continuing Directors (as defined below) and benefit
plans sponsored by the Company):
(A) makes a tender or exchange offer for any shares of the
Company's outstanding voting securities at any point in time
(the "Company Stock") pursuant to which any shares of the
Company's Stock are purchased; or
(B) together with its "affiliates" and "associates" (as
those terms are defined in Rule 12b-2 under the Securities
Exchange Act of 1934 (the "Act")) becomes the "beneficial
owner" (within the meaning of Rule 13d-3 under the Act) of
at least 20% of Company's Stock; or
(ii) the stockholders of the Company approve a definitive
agreement or plan to merge or consolidate the Company with or
into another unaffiliated corporation, to sell or otherwise
dispose of all or substantially all of its assets, or to
liquidate the Company; or
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(iii) a majority of the members of the Board become individuals
other than Continuing Directors (as defined below).
A "Continuing Director" means: (a) any member of the Board as of April
1, 1997, and (b) any other member of the Board, from time to time, who was
(i) nominated for election by the Board or (ii) appointed by the Board to
fill a vacancy on the Board or to fill a newly-created directorship, in each
case excluding any individual nominated or appointed (y) at a Board meeting
at which the majority of directors present are not Continuing Directors or
(z) by unanimous written action of the Board unless a majority of the
directors taking such action are Continuing Directors.
8. COMPENSATION ON CHANGE IN CONTROL. In the event of a termination under
subparagraph 7.c. above, during the Period of Employment or any extension
thereof:
(i) The Company shall pay the Executive any earned and accrued
but unpaid installment of base salary through the Date of
Termination, at the rate in effect on the Date of Termination, or
if greater, on the date immediately preceding the date that a Change
in Control occurs, and all other unpaid amounts to which the
Executive is entitled as of the Date of Termination under any
compensation plan or program of the Company, including, without
limitation, all accrued vacation time; such payments to be made in a
lump sum on or before the fifth day following the Date of Termination.
(ii) In lieu of any further salary payments to the Executive for
periods subsequent to the Date of Termination, the Company shall pay
as liquidated damages to the Executive an amount equal to the
product of (A) the sum of (1) the Executive's annual salary rate
in effect as of the Date of Termination, or if greater, on the date
immediately preceding the date that a Change in Control occurs,
and (2) the greater of: (i) the prior year's actual incentive
payment to the Executive under the Company's incentive plan for that
year or (ii) the dollar amount payable at 100% of target under the
Company's then current incentive plan for the year in which occurs
such Date of Termination, and (B) the number two (2); such payment to
be made in a lump sum on or before the fifth day following the
Date of Termination.
(iii) The Company shall pay all other damages to which the
Executive is entitled as a result of such termination, including
damages for any and al loss of benefits to the Executive under the
Company's employee welfare benefit plans and perquisite programs
which the Executive would have received had the Executive's
employment continued for an additional two (2) years, and including
all reasonable legal fees and expenses incurred by him as a result
of such termination, including the fees and expenses of
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enforcing the terms of this Agreement; payment of such fees to be made
within thirty (30) days following the Company's receipt of an
appropriate invoice therefor.
(iv) For a period of not less than twenty-four (24) months
following the Executive's Date of Termination, the Company will
reimburse the Executive in an amount not to exceed $15,000 for all
reasonable expenses of a reputable outplacement organization
incurred by him (but not including any arrangement by which the
Executive prepays expenses for a period of greater than thirty (30)
days) in seeking employment with another employer.
(v) Executive shall be fully vested in all shares of restricted
stock, performance awards, stock appreciation rights and stock
options granted to him under the Norstan, Inc. 1995 Long-Term
Incentive Plan (or any predecessor or successor plan) on the date of
a Change in Control.
(vi) The present value (as defined herein) of the liquidated
damages payable to the Executive under subsection (ii) above, and
any other payments otherwise payable to the Executive by the
Company on or after a Change in Control, as defined in Section
280G of the Internal Revenue Code of 1986, as amended (the "Code"),
which are deemed under said Section 280G to constitute "parachute
payments" (as defined in Section 280G without regard to Section
280G(b)(2)(A)(ii)), shall be less than three times the
Executive's base amount (as defined herein). In the event that the
present value of such payments equals or exceeds such amount, the
provisions set forth in this subparagraph (vi) will apply, and
liquidated damages or other severance benefits payable to the
Executive under this Agreement will be made only in accordance
with this subparagraph (vi) notwithstanding any provision to the
contrary in this Agreement.
(A) Not later than thirty days after the Date of
Termination, the Company will provide the Executive with a
schedule indicating by category the present value of the
liquidated damages payable to the Executive under this
Agreement, all other benefits payable to the Executive under
this Agreement (specifying the paragraph, subparagraph or
clause under which each such payment is to be made) and any
other payments otherwise payable to the Executive by the Company
on or after the Change in Control, which, in the Company's
opinion, constitute parachute payments under Section 280G of the
Code. No payments under this Agreement shall be made until
after thirty days from the receipt of such schedule by the
Executive. At any time prior to the expiration of said 30-day
period, the Executive shall have the right to select from all or
part
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of any category of payment to be made under this
Agreement those payments to be made to the Executive in an
amount the present value of which (when combined with the
present value of any other payments otherwise payable to the
Executive by the Company that are deemed parachute payments)
is less than 300 percent of the Executive's base amount. If
the Executive fails to exercise his right to make a
selection, only a lump sum cash severance payment equal to one
dollar less than 300 percent of the Executive's base amount
(reduced by the present value of any other payments otherwise
payable to the Executive by the Company that are deemed
parachute payments and increased, to the extent such increase
will not cause the payment to be an excess parachute payment
under Section 280G of the Code, by interest from the Date of
Termination to the date of payment at the Federal short-term
rate, compounded annually, promulgated under Section 1274(d) of
the Code as effective for the month in which the Date of
Termination occurs) shall be made to the Executive on the day
after the expiration of the period extending thirty days from his
receipt of the schedule provided for hereunder, and no other
liquidated damages or other benefits under subparagraphs
(ii), (iii), (iv) and (v) above of this Agreement shall be paid
to the Executive.
(B) If the Company fails to supply the schedule within
thirty days of the Date of Termination, then the provisions of
this subparagraph (vi) shall not apply and the Company shall
be obligated to pay to the Executive the full amount of
liquidated damages and other benefits under this Agreement,
without regard to subparagraph (vi).
(C) If the Executive disagrees with the schedule prepared
by the Company, then the Executive shall have the right to
submit the schedule to arbitration, in accordance with the
provisions of paragraph 12 herein. The period in which the
Executive may select his benefits under this Agreement shall be
extended until fifteen days after a final and binding
arbitration award is issued or a final judgment, order or
decree of a court of competent jurisdiction is entered upon
such arbitration award (the time for appeal therefrom having
expired and no appeal having been perfected), and the Company's
period for paying the Executive's unpaid benefits under this
Agreement shall be extended until ten days thereafter. If the
Executive fails to make a selection within said fifteen day
period, the Company shall pay the unpaid benefits within five
days following the expiration of the Executive's fifteen day
period.
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(D) For purposes of this subparagraph (vi), "present value"
means the value determined in accordance with the principles
of Section 1274(b)(2) of the Code under regulations
promulgated under Section 280G of the Code, and "base amount"
means the annualized includible compensation for the base
period payable to the Executive by the Company and includible
in the Executive's gross income for Federal income tax purposes
during the shorter of the period consisting of the most recent
five taxable years ending before the date of any Change in
Control of the Company or the portion of such period during
which the Executive was an employee of the Company.
(E) In the event that Section 280G of the Code, or any
successor statute, is repealed, this subparagraph (vi) shall
cease to be effective on the effective date of such repeal.
(vii) The Executive shall not be required to mitigate damages or the
amount of any payment provided for under this Agreement by seeking
other employment or otherwise, nor shall the amount of any payment
provided for under this Agreement be reduced by any compensation
earned by the Executive as the result of employment by another
employer after the Date of Termination, or otherwise.
9. COMPETITION.
a. During the Employment Period, Executive will not, except with the
express written consent of the Chairman of the Board of Directors of the Company
become engaged in, or permit his name to be used in connection with any business
other than the businesses of the Company and its subsidiaries, whether or not
such other business is a competitive business.
b. Executive covenants and agrees that for a period of 12 months
after the termination of the Employment Period, or for such longer period as
Executive is receiving payments pursuant to paragraph 8, he will not, except
with the express written consent of the then Chairman of the Board of Directors
of the Company, engage directly or indirectly in, or permit his name to be used
in connection with any competitive business in the geographic area serviced by
the Company or its subsidiaries. Executive further covenants and agrees for a
period of 12 months from the date of termination of his employment hereunder not
to solicit or assist anyone else in the solicitation of, any of the Company's
then-current employees to terminate their employment with the Company and to
become employed by any business enterprise with which the Executive may then be
associated, affiliated or connected.
c. For the purposes of this paragraph 9: (i) the phrase, "engage
directly or indirectly in" shall encompass: (A) all of Executive's activities
whether on his own account or as an employee, director, officer, agent,
consultant, independent contractor, or partner of or in any
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person, firm, or corporation (other than the Company and its subsidiaries),
or (B) Executive's ownership of more than 10% of the voting stock of any
corporation, 5% or more of the gross income of which is derived from any
business or businesses in which Executive may not then engage; and (ii) the
phrase "competitive business" shall mean: (A) the sale of telephone,
telecommunications, or similar equipment, or (B) any other business in which
the Company or its subsidiaries is then engaged.
d. Notwithstanding the foregoing, the restrictions set forth in
subparagraph 9.b. shall not apply if Executive's employment is terminated under
any of the circumstances described in subparagraphs 7.c. or 14.a.
10. CONFIDENTIAL INFORMATION. Executive agrees that he will not,
without the prior written consent of the Board of Directors of the Company,
during the term or after termination of his employment under this Agreement,
directly or indirectly disclose to any individual, corporation, or other
entity (other than the Company or any subsidiary thereof, their officers,
directors, or employees entitled to such information, or to any other person
or entity to whom such information is regularly disclosed in the normal
course of the Company's business) or use for his own or such another's
benefit, any information, whether or not reduced to written or other tangible
form, which:
a. is not generally known to the public or in the industry;
b. has been treated by the Company or any of its subsidiaries as
confidential or proprietary; and
c. is of competitive advantage to the Company or any of its
subsidiaries and in the confidentiality of which the Company or any of its
subsidiaries has a legally protectable interest.
Information which becomes generally known to the public or in the industry, or
in the confidentiality of which the Company and its subsidiaries cease to have a
legally protectable interest, shall cease to be subject to the restrictions of
this paragraph.
11. ENFORCEMENT. If, at the time of enforcement of any provision of
paragraphs 9 or 10, a court shall hold that the period, scope, or geographical
area restrictions stated therein are unreasonable under circumstances then
existing, the maximum period, scope, or geographical area reasonable under the
circumstances shall be substituted for the stated period, scope, or area. In
the event of a breach by Executive of any of the provisions of paragraphs 9 or
10, the Company may, in addition to any other rights and remedies existing in
its favor, apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive or other relief in order to enforce or
prevent any violations of the provisions hereof.
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12. ARBITRATION. Except to the extent provided in paragraph 11, any
controversy or claim arising out of or relating to this Agreement, or any breach
thereof, shall be settled by arbitration before three arbitrators, and judgment
rendered by the arbitrators, or a majority of them, may be entered in any court
having jurisdiction thereof. Within 30 days after notice by either party to the
other requesting such arbitration, each party shall appoint a disinterested and
neutral arbitrator, and the two thus chosen shall appoint a third disinterested
and neutral arbitrator. If the two arbitrators so appointed cannot agree upon
the appointment of a third arbitrator, then such third arbitrator shall be
appointed by the Chief Judge of the United States District Court for the
district that then includes the City of Minneapolis. Such arbitration shall be
conducted in the City of Minneapolis in conformity with the procedures provided
under the Uniform Arbitration Act, as adopted by the State of Minnesota and as
then in effect. Except as provided in paragraph 13 of this Agreement, the
parties shall each pay their own expenses in connection with such arbitration
and any related proceedings.
13. PAYMENT OF COSTS. If a dispute arises regarding a termination of
Executive's employment after a Change in Control and Executive obtains a final
judgment in his favor from which no appeal may be taken, whether because the
time to do so has expired or otherwise, or his claim is settled by the Company
prior to the rendering of such a judgment, all reasonable legal fees and
expenses incurred by Executive in contesting or disputing any such termination,
in seeking to obtain or enforce any right or benefit provided for in this
Agreement, or in otherwise pursuing his claim will be promptly paid by the
Company, with interest thereon at the highest Minnesota statutory rate for
interest on judgments against private parties, from the date of payment thereof
by Executive to the date of reimbursement to him by the Company.
14. SUCCESSORS.
a. OF THE COMPANY. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would have been required to perform it if no such
succession had taken place. Failure of the Company to obtain such agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle Executive to terminate his employment with the
Company and to receive the payments and benefits provided for in paragraph 8.
As used in this Agreement, "Company" shall mean the Company as hereinbefore
defined, and any successor to the business and/or assets of the Company which
executes and delivers the agreement provided for in this paragraph 14 or which
otherwise becomes bound by all the terms and provisions of this Agreement as a
matter of law.
b. OF EXECUTIVE. This Agreement and all rights of the Executive
hereunder shall inure to the benefit of and be enforceable by the Executive's
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any
amounts would still be payable to him hereunder if he had continued to
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live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the Executive's devisee,
legatee, or other designee or, if there be no such designee, to the
Executive's estate.
15. GENERAL PROVISIONS.
a. ASSIGNMENTS. Executive's rights and interests under this
Agreement may not be assigned, pledged, or encumbered by him without the
Company's written consent.
b. EFFECT OF HEADINGS. The headings of all of the paragraphs and
subparagraphs of this Agreement are inserted for convenience of reference only,
and shall not affect the construction or interpretation of this Agreement.
c. MODIFICATION, AMENDMENT, WAIVER. No modification, amendment, or
waiver of any provision of this Agreement shall be effective unless approved in
writing by both parties. The failure at any time to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of either party thereafter to enforce
each and every provision of this Agreement in accordance with its terms.
d. SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be held to be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.
e. NO STRICT CONSTRUCTION. The language used in this Agreement shall
be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction shall be applied against any
person.
f. APPLICABLE LAW. All questions concerning the construction,
validity, and interpretation of this Agreement shall be governed by the laws of
the State of Minnesota.
g. NOTICES. Any notice to be served under this Agreement shall be in
writing and shall be mailed by registered mail, registry fee and postage prepaid
and return receipt requested, addressed:
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If to the Company, to:
Norstan, Inc.
605 North Highway 169, 12th Floor
Plymouth, MN 55441
Attention: Chairman of the Board; or
If to Executive, to:
David R. Richard
605 North Highway 169, 12th Floor
Plymouth, MN 55441
or to such other place as either party may specify in writing, delivered in
accordance with the provisions of this subparagraph.
h. SURVIVAL. The rights and obligations of the parties shall survive
the term of Executive's employment to the extent that any performance is
required under this Agreement after the expiration or termination of such term.
i. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
of the parties with respect to the subject matter thereof, and supersedes all
previous agreements between the parties relating to the same subject matter.
IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement as of the day and year first above written.
NORSTAN INC. (the "Company")
By /s/ Paul Baszucki
------------------------------
Chief Executive Officer
David R. Richard (the "Executive")
/s/ David R. Richard
-------------------------------
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