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EXHIBIT 10.4
March 25, 1998
Xxxx X. Xxxxxxxxx
President of Imaging Services Division
Lason, Inc.
0000 Xxxxxxxxxx Xxxxxxx
Xxxx, Xxxxxxxx 00000
RE: Amendment to Employment Agreement
Dear Xx. Xxxxxxxxx:
The purpose of this letter is to memorialize our modification of that
certain Employment Agreement (the "Employment Agreement") between Image
Conversion Systems, Inc. ("Corporation") and you ("Employee") dated July 29,
1997 with respect to the additional consideration to be paid to you for your
shares of Common Stock in the Corporation pursuant to that certain Agreement of
Purchase and Sale of Stock dated July 17, 1997 (the "Stock Purchase Agreement")
referenced in Paragraph 2B(ii) of the Employment Agreement. As you know,
subsequent to the date of the Employment Agreement, the Corporation was merged
into Lason Services, Inc. ("LSI") effective on December 31, 1997. Accordingly,
LSI is the successor to the Corporation under the Employment Agreement.
For valuable consideration in connection with the sale of your shares of the
Corporation pursuant to the Stock Purchase Agreement, the receipt of which is
hereby acknowledged, we each hereby agree that the last three paragraphs of
Paragraph 4 of the Employment Agreement are hereby modified by deleting
therefrom any and all references to Paragraph 2B(ii) and by adding the following
new final paragraph to Paragraph 4:
In the event that Employee is terminated for Cause by the
Corporation as set forth above, then, and in that event, (i)
as pertains to Employee's base pay, Employee shall be entitled
to receive his base pay only through the end of the week of
termination, and (ii) as pertains to Employee's Bonus
described in Paragraph 2B(ii), Corporation shall be entitled
to set-off against the Bonus described in Paragraph 2B(ii) the
amount of any and all losses, expenses, costs, obligations,
liabilities and damages, including interest, penalties and
reasonable attorneys' fees and expenses to the Corporation and
its affiliates arising from or relating to the actions of
Employee which resulted in Employee's termination by the
Corporation for Cause.
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Xxxx X. Xxxxxxxxx
March 25, 1998
Page 2
Notwithstanding the foregoing, in the event that Employee's
termination for Cause is occasioned by his death or Disability
as defined in E above or in the event that Employee is
terminated by Corporation without Cause or Employee quits his
employment with or without Good Reason, Employee (or his heirs
or devisees, as applicable), shall be paid the Bonus described
in Paragraph 2B(ii) if earned pursuant to the terms and
conditions of Paragraph 2B(ii).
To clarify, as a result of this change and as additional consideration for
the purchase of Employee's shares in the Corporation pursuant to the Stock
Purchase Agreement, Employee is entitled to the Bonus described in Paragraph
2B(ii) (if earned pursuant to the terms and conditions of Paragraph 2B(ii)),
whether or not his employment is terminated, but if Employee is terminated by
the Corporation for Cause (other than death or disability), Corporation may
offset against such Bonus, the damages to the Corporation caused by Employee's
actions which resulted in the termination by the Corporation for Cause.
Except for this change, the Employment Agreement remains in full force and
effect. If the terms of this modification are acceptable, please so indicate in
the space provided below and this change shall be binding on LSI and Employee.
Very truly yours,
LASON SERVICES, INC.
By: /s/ Xxxx X. Xxxxxx
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Xxxx X. Xxxxxx
Its: President and Chief Executive Officer
Accepted and Agreed to this
25th day of March, 1998
/s/ Xxxx X. Xxxxxxxxx
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Xxxx X. Xxxxxxxxx