EXHIBIT 10.2
EMPLOYMENT RETIREMENT AGREEMENT
THIS EMPLOYMENT RETIREMENT AGREEMENT (the "Agreement"), which includes
Exhibit A, B and C, which are incorporated by this reference, is entered into by
and between GTSI Corp., a Delaware corporation ("GTSI"), and Xxxxxx X. Xxxxxxx
("Employee"). It will become effective as set forth in Section 13.19 (the
"Effective Date").
RECITALS
A. Employee and GTSI agree to modify the Employee's employment status and
responsibilities as of the Effective Date, and to provide for Employee's
retirement from GTSI upon the Retirement Date. In exchange, GTSI will provide
Employee the benefits set forth in this Agreement. Employee's receipt of these
benefits is contingent upon Employee's entering into this Agreement and
undertaking the obligations it sets forth.
B. GTSI and Employee desire to set forth their respective rights and
obligations with respect to Employee's modified status, responsibilities and
retirement, and to settle and resolve all matters concerning Employee's current
or past services to GTSI.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and conditions in this agreement, the receipt and sufficiency of which
are hereby acknowledged, GTSI and Employee agree as follows:
1. TRANSITION PROVISIONS
1.1 FULL-TIME PERIOD. The parties agree that Employee will be employed
full-time for a three-month period following the Effective Date ("Full-Time
Period") at the Employee's current salary and benefits, to include continued
eligibility for bonuses earned during such Period and payment of accrued but
unused vacation time (as described in Exhibit A), subject to the terms of this
Agreement. During the Full-Time Period, Employee will remain as Chief Financial
Officer and Senior Vice-President, unless GTSI earlier identifies a new CFO, in
which case, Employee will, upon GTSI's request, resign as CFO (but retain a
Senior Vice-President title) and, in good faith, facilitate the transition of
his full-time duties and responsibilities to his replacement.
1.2 TRANSITION DATE. On the day following the end of the Full-Time Period
("Transition Date"), Employee will resign as CFO (unless earlier resigned per
Section 1.1) and Senior Vice-President, and Employee's status will change to a
part-time basis. Employee will be retained as a special adviser to the CEO for a
twelve (12) month period following the Transition Date ("Part-Time Period").
During this Part-Time Period, GTSI will pay Employee one-half of Employee's base
salary, subject to compliance with the terms of this Agreement. Employee will be
entitled to additional compensation equal to any additional amount necessary to
maintain Employee's current medical and dental insurance benefits until the end
of the Part-Time period assuming Employee maintains the same level of current
monetary contribution. Facility access will be via the employee's current
facilities badge until the Retirement Date described below
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1.3 PART-TIME RESPONSIBILITIES. During the Part-Time Period, Employee will
be available to the CEO and COO of GTSI, and will contribute a minimum of 10 -
20 hours a week to special projects identified by the CEO. Any need for hours
above the 20 hours a week will be subject to prior written approval of the
parties and may include additional compensation to be agreed to at such time.
Employee will work out of his home office except when company records are
necessary to accomplish his assigned task. During this Part-Time Period, GTSI
will provide a laptop, an email account and dial-up Internet access to support
the home office environment. GTSI will make available, from time to time when
required, a temporary working space in GTSI's Chantilly facility.
1.4 RETIREMENT DATE. GTSI's obligation to Employee and Employee's status
as a GTSI employee will terminate effective at the end of the Part-Time Period
("Retirement Date"), unless otherwise mutually agreed to in writing by the
parties. Upon the Retirement Date, Employee will return the GTSI-provided laptop
and any other GTSI-provided equipment or materials. Notwithstanding anything in
this Agreement to the contrary, GTSI's obligation to pay Employee during the
Full-Time Period or Part-Time Period will be subject to Employee complying with
the terms of this Agreement.
2. MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS
Each party represents, warrants and covenants (with respect to
itself/himself only) to the other party that, to its/his respective best
knowledge and belief as of the date of each party's respective signature below:
2.1 FULL POWER AND AUTHORITY. It/he has full power and authority to
execute, enter into and perform its/his obligations under this Agreement; this
Agreement, after execution by both parties, will be a legal, valid and binding
obligation of such party enforceable against it/him in accordance with its
terms; it/he will not act or omit to act in any way which would materially
interfere with or prohibit the performance of any of its/his obligations
hereunder, and no approval or consent other than as has been obtained of any
other party is necessary in connection with the execution and performance of
this Agreement.
2.2 EFFECT OF AGREEMENT. The execution, delivery and performance of this
Agreement and the consummation of the transactions it contemplates:
(a) will not interfere or conflict with, result in a breach of,
constitute a default under or violation of any of the terms, provisions,
covenants or conditions of any contract, agreement or understanding, whether
written or oral, to which either party is a party (including, in the case of
GTSI, its bylaws and articles of incorporation as amended to date) or to which
it/he is bound; and
(b) will not conflict with or violate any applicable law, rule,
regulation, judgment, order or decree of any government, governmental agency or
court having jurisdiction of such party.
3. CONFIDENTIALITY OBLIGATIONS DO NOT TERMINATE
Employee acknowledges that any confidentiality, proprietary rights or
nondisclosure agreement(s) in favor of GTSI which he may have entered into in
connection with his employment (the "Nondisclosure Agreement") with GTSI will
survive the retirement of such employment, and nothing in this Agreement shall
be construed as terminating, limiting or otherwise affecting any such
Nondisclosure Agreement(s) or Employee's obligations thereunder. Without
limiting the generality of the foregoing, no time period set forth in this
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Agreement shall shorten or limit the term of any such Nondisclosure
Agreement(s), which term shall continue as set forth therein.
4. COMPANY PROPERTY
On or before the Retirement Date, Employee agrees to return to GTSI any
and all GTSI assets or property which has come into his possession or control.
Employee's GTSI email account and other network access will terminate as of the
Retirement Date.
5. STOCK OPTIONS
5.1 STATUS. Exhibit B sets forth a complete list of any and all stock
options, warrants and other rights to purchase capital stock of GTSI which have
been previously issued to Employee and which have vested as of the Retirement
Date hereof. Exhibit B includes 3,000 options not vested as of the Retirement
Date; as consideration to Employee under this Agreement these additional options
will vest as of the Retirement Date as set out in Exhibit B.
5.2 PURCHASE OF STOCK BY GTSI. As described in the Exhibit B schedule,
Employee will exercise the indicated options to purchase capital stock of GTSI,
and will then concurrently sell all of such capital stock back to GTSI at the
indicated price, free and clear of any liens, rights or claims of third parties,
at a price of $7.00 per share. Notwithstanding the foregoing, GTSI agrees if
during the Part-Time Period this Agreement is assigned per Section 13.13, then
any of the 71,167 shares under part B of Exhibit B that remain unvested, shall
immediately be accelerated, and the GTSI Purchase Price will be revised to the
acquisition price paid (or to be paid) for GTSI capital stock as the result of
such acquisition. Upon receipt of clear title to the above, GTSI will promptly
complete the purchase and issue to Employee payment of the net proceeds from
such transactions. The first payment will be immediately following the Effective
Date, and the final payment will be made immediately following the Retirement
Date, conditioned upon Employee's execution of GTSI's standard final release and
waiver agreement set out in Exhibit C.
6. CONFIDENTIAL INFORMATION AND TRADE SECRETS
6.1 Employee recognizes, acknowledges and agrees that GTSI is the owner of
proprietary rights in certain confidential sales and marketing information,
programs, tactics, systems, methods, processes, compilations of technical and
non-technical information, records and other business, financial, sales,
marketing and other information and things of value. To the extent that any or
all of the foregoing constitute valuable trade secrets and/or confidential
and/or privileged information of GTSI, Employee further agrees as follows:
(a) That, during the Full-Time Period and Part-Time Period, and at
all times thereafter, except with prior written authorization from GTSI's CEO or
COO, for purposes related to GTSI's best interests, he will not directly or
indirectly duplicate, remove, transfer, disclose or utilize, nor knowingly allow
any other person to duplicate, remove, transfer, disclose or utilize, any
property, assets, trade secrets or other things of value, including, but not
limited to, records, techniques, procedures, systems, methods, market research,
distribution arrangements, advertising and promotional materials, lists of past,
present or prospective customers, and data prepared for, stored in, processed by
or obtained from, an automated information system belonging to or in the
possession of GTSI which are not intended for and have not been the subject of
public disclosure. Employee agrees to safeguard all GTSI trade secrets in his
possession or known to him at all times so that they
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are not exposed to, or taken by, unauthorized persons and to exercise his
reasonable efforts to assure their safekeeping. This subsection shall not apply
to information that (i) is now or later becomes generally known to the public or
competitors of GTSI (other than as a result of a breach of this Agreement); (ii)
Employee lawfully obtains from any third party who has lawfully obtained such
information without any obligation of confidentiality; or (iii) is later
published or generally disclosed to the public by GTSI. Employee shall bear the
burden of showing that any of the foregoing exclusions applies to any
information or materials.
(b) That all improvements, discoveries, systems, techniques, ideas,
processes, programs and other things of value made or conceived in whole or in
part by Employee with respect to any aspects of GTSI's current or anticipated
business while an employee of GTSI are and remain the sole and exclusive
property of GTSI, and Employee has disclosed all such things of value to GTSI
and will cooperate with GTSI to ensure that the ownership by GTSI of such
property is protected. All of such property of GTSI in Employee's possession or
control, including, but not limited to, all personal notes, documents and
reproductions thereof, relating to the business and the trade secrets or
confidential or privileged information of GTSI has already been, or shall be
immediately, delivered to GTSI upon the Retirement Date.
6.2 Employee further acknowledges that as the result of his service as an
employee of GTSI, he has had access to, and is in possession of, information and
documents protected by the attorney-client privilege and by attorney work
product doctrine, such as information relating to acquisitions and Board of
Directors' correspondence. Employee understands that the privilege to hold such
information and documents confidential is GTSI's, not his personally, and that
he will not, during the Full-Time Period and Part-Time Period and at all times
thereafter, disclose the information or documents to any person or entity
without the express prior written consent of the CEO or COO or Board of GTSI
unless he is required to do so by law.
6.3 Employee agrees that during the Part-Time Period and for a period of 6
months after the end of such Period, he shall not, directly or indirectly,
whether as an employee, consultant, officer, director, shareholder, partner,
agent or in any other capacity, solicit, offer employment to or hire any person
who then is an employee of GTSI or who was an employee of GTSI at any time in
the 6 months preceding the solicitation, offer or hiring, to work as an employee
or consultant for any other person or entity or work with any such person or
entity who does any of the foregoing.
6.4 Employee's obligations set forth in this Section 6 shall be in
addition to, and not instead of, Employee's obligations under any written
Nondisclosure Agreement.
6.5 Employee acknowledges and agrees that the services render by him to
GTSI in the course of his employment with GTSI is of a special and unique
character, and that during his employment and at all times thereafter, a breach
by him of any provision of the covenants set forth in this Section 6 will cause
GTSI irreparable injury and damages. Employee expressly agrees that GTSI shall
be entitled, in addition to all other remedies available to it whether at law or
in equity, to injunctive and other equitable relief to secure their enforcement.
6.6 The parties expressly agree that the covenants contained in this
Section 6 are reasonable in scope, duration and otherwise; however, if any of
the restraints provided in these covenants are adjudicated to be excessively
broad as to area or time or otherwise, such restraint shall be reduced to
whatever extent is reasonable and the restraint shall be fully enforced in such
modified form. Any provisions of such covenants not so reduced shall remain in
full force and effect.
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7. PROHIBITION AGAINST DISPARAGEMENT
GTSI and Employee each agree that during the Full-Time Period and
Part-Time Period, and at all times thereafter, any communication, whether oral
or written, occurring on or off the premises of GTSI, made by it/him or its/his
agent to any person or entity (including, without limitation, any GTSI employee,
customer, vendor, supplier and any competitor and any person associated with any
media) which in any way relates to his or to GTSI or to GTSI's directors,
officers, management or employees: (1) will be truthful; and (2) will not
disparage or undermine the reputation or business practices of Employee or GTSI
or its directors, officers, management or employees. The only exceptions to the
foregoing shall be: (1) truthful statements privately made to (a) the CEO or COO
of GTSI, or their designated representatives, (b) any member of GTSI's Board of
Directors, (c) GTSI's auditors, (d) inside or outside counsel of GTSI, (e)
Employee's counsel or (f) Employee's spouse; (2) truthful statements lawfully
compelled and made under oath; (3) truthful statements made to specified persons
upon and in compliance with prior written authorization from or in connection
with formal legal or administrative proceedings, GTSI's CEO or COO or Board; and
(4) truthful statements made by GTSI's CEO or COO to specified persons upon and
in compliance with prior authorization from Employee asking them to respond to
inquiries from such specified persons.
8. COOPERATION
Employee agrees that during the Full-Time Period and Part-Time Period, and
at all times thereafter, he will cooperate fully and reasonably with GTSI in
connection with any future or currently pending matter, proceeding,
investigation, litigation or threatened litigation: (1) directly or indirectly
involving GTSI (which, for purposes of this section, shall include GTSI and each
of its current and future subsidiaries, successors or permitted assigns); or (2)
directly or indirectly involving any director, officer or employee of GTSI (with
regard to matters relating to such person(s) acting in such capacities with
regard to GTSI business). Such cooperation shall include making himself
available upon reasonable notice at reasonable times and places to consult with
and to testify truthfully (at GTSI's expense for reasonable, pre-approved
out-of-pocket travel costs) in any action as reasonably requested by the CEO or
COO or the Board of Directors. Employee further agrees to promptly notify GTSI's
CEO or COO in writing in the event that he receives any legal process or other
communication purporting to require or request him to produce testimony,
documents, information or things in any manner related to GTSI, its directors,
officers or employees, and that he will not produce testimony, documents,
information or other things with regard to any pending or threatened lawsuit or
proceeding regarding GTSI without giving GTSI prior written notice of the same
and reasonable time to protect its interests with respect thereto. Employee
further promises that during the Part-Time Period (and the initial six months of
the Retirement Period) when so directed by the CEO or COO or the Board of
Directors, he will make himself available to attend any such legal proceeding
and will truthfully respond to any questions in any manner concerning or
relating to GTSI and will produce all documents and things in his possession or
under his control which in any manner concern or relate to GTSI.
9. SOLE ENTITLEMENT
Employee acknowledges and agrees that his sole entitlement to
compensation, payments of any kind, monetary and non-monetary benefits and
perquisites with respect to his modified GTSI status and his GTSI relationship
(as an officer and employee), whether before or after the Retirement Date, is as
set forth in this
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Agreement, stock option agreements, and COBRA. Employee acknowledges and agrees
that the $7.00 GTSI Purchase Price set out in Exhibit A is a fair and reasonable
price, and that such amount and the other entitlements provided herein are
adequate consideration for Employee's duties and obligations under this
Agreement.
10. RELEASE OF CLAIMS
10.1 Employee forever releases and discharges GTSI and the predecessor
corporation of GTSI as well as the successors, current or prior stockholders of
record, officers, directors, heirs, predecessors, assigns, agents, employees,
attorneys and representatives of each of them, past or present, from any and all
cause or causes of action, actions, judgments, liens, indebtedness, damages,
losses, claims, liabilities, expenses and demands of any kind or character
whatsoever, whether known or unknown, anticipated or not anticipated, whether or
not previously brought before any state or federal agency, court or other
governmental entity which are existing on or arising prior to the date of this
Agreement and which, directly or indirectly, in whole or in part, relate or are
attributable to, connected with, or incidental to the previous employment of
Employee by GTSI, the retirement of that employment, and any dealings between
the parties concerning Employee's employment existing prior to the date of
execution of this Agreement, excepting only those obligations expressly recited
herein or to be performed hereunder, including but not limited to any and all
claims of discrimination on account of sex, race, age, handicap, veteran status,
national origin or religion, and claims or causes of action based upon any equal
employment opportunity laws, ordinances, regulations or orders, including but
not limited to Title VII of the Civil Rights Act of 1964 and the Age
Discrimination In Employment Act, the Americans With Disabilities Act, Executive
Order 11246, the Rehabilitation Act and any applicable state or local
anti-discrimination statutes; claims for breach of any contract, agreement or
promises made prior to this date; claims for wrongful termination actions of any
type, breach of express or implied covenant of good faith and fair dealing;
intentional or negligent infliction of emotional distress; claims for libel,
slander or invasion of privacy; provided, however, that Employee and GTSI agree
that Employee does not waive any rights or claims under the Age Discrimination
In Employment Act that may arise after the execution of this document by
Employee. This provision is intended to exclude from release only claims "that
arise after" execution of this document by Employee as provided for by the Older
Workers Benefit Protection Act. This release also applies to any claims or
rights that Employee might have or assert with respect to any claims or rights,
if any, concerning any GTSI bonus plan applicable to GTSI officers. Nothing
contained in this Section 10 shall affect any rights, claims or causes of action
which Employee may have (1) as a stockholder of GTSI; (2) to indemnification by
GTSI, to the extent required under the provisions of GTSI's Certificate of
Incorporation, GTSI's By-Laws, the Delaware General Corporation Law, insurance
or contracts, with respect to matters relating to Employee's prior service as an
officer, employee and agent of GTSI; (3) to make claims against or seek
contribution from anyone not released by the first sentence of this Section 10
with respect to any matter or anyone released by the first sentence of this
Section 10 with respect to any matter not released thereby; or (4) with respect
to GTSI's performance of this Agreement.
10.2 GTSI forever releases and discharges Employee, and his heirs, from
any and all cause or cause of action, actions, judgments, liens, indebtedness,
damages, losses, claims, liabilities, expenses and demands of any kind or
character whatsoever, whether known or unknown, anticipated or not anticipated,
whether or not previously brought before any state or federal agency, court or
other governmental entity which are existing on or arising prior to the date of
this Agreement and which, directly or indirectly, in whole or in part, relate or
are attributable to, connected with, or incidental to the previous employment of
Employee by GTSI, the end of that employment, and any dealings between the
parties concerning Employee's employment existing prior to the date of execution
of this Agreement, excepting only claims arising from a breach by Employee of
this Agreement including those obligations recited herein or to be performed
hereunder. Nothing contained in this Section 10.2
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shall affect any rights, claims or cause of action which GTSI may have to make
claims against or seek contribution from anyone not released by the first
sentence of this Section 10.2 with respect to any matter or anyone released by
the first sentence or this Section 10.2 with respect to any matter not released
thereby; or with respect to Employee's performance of this Agreement.
11. ASSIGNMENT
Employee represents and warrants that he has not assigned, transferred or
granted or purported to assign, transfer or grant any claims, entitlement,
matters, demands or causes of action herein released, disclaimed, discharged or
terminated, and agrees to indemnify and hold harmless GTSI from and against any
and all costs, expense, loss or liability incurred by GTSI as a consequence of
any such assignment, transfer or grant.
12. EMPLOYEE REPRESENTATIONS
Notwithstanding that this Agreement will be entered into prior to the
Retirement Date, Employee represents and warrants that he has not acted or
omitted to act in any respect which directly or indirectly would have
constituted a violation of Sections 6, 7 or 8 herein had this Agreement then
been in effect.
13. MISCELLANEOUS
13.1 NOTICES. All notices and demands referred to or required herein or
pursuant hereto shall be in writing, shall specifically reference this Agreement
and shall be deemed to be duly sent and given upon actual delivery to and
receipt by the relevant party (which notice, in the case of GTSI, must be from
an officer of GTSI) or five days after deposit in the U.S. mail by certified or
registered mail, return receipt requested, with postage prepaid, addressed as
follows (if, however, a party has given the other party due notice of another
address for the sending of notices, then future notices shall be sent to such
new address):
(a) If to GTSI: GTSI Corp.
0000 Xxxxxxxxxx Xxxxxxxxx
Xxxxxxxxx, Xxxxxxxx 00000-0000
Attn: Chief Operating Officer
(b) If to Employee: Xxxxxx X. Xxxxxxx
0000 Xxxxxx Xxxxx
Xxxxxx, XX 00000
13.2 LEGAL ADVICE AND CONSTRUCTION OF AGREEMENT. Both GTSI and Employee
have received (or have voluntarily and knowingly elected not to receive)
independent legal advice with respect to the advisability of entering into this
Agreement and neither has been entitled to rely upon or has in fact relied upon
the legal or other advice of the other party or such other party's counsel (or
employees) in entering into this Agreement. In Employee's case, he is/was
expressly advised by GTSI of his right to consult an attorney to review this
Agreement. Each party has participated in the drafting and preparation of this
Agreement, and, accordingly, in any construction or interpretation of this
Agreement, the same shall not be construed against any party by reason of the
source of drafting.
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13.3 PARTIES' UNDERSTANDING. GTSI and Employee state that each has
carefully read this Agreement, that it has been fully explained to it/him by
its/his attorney (or that it/he has voluntarily and knowingly elected not to
receive such explanation), that it/he fully understands its final and binding
effect, that the only promises made to it/him to sign the Agreement are those
stated above, and that it/he is signing this Agreement voluntarily.
13.4 RECITALS AND SECTION HEADINGS. Each term of this Agreement is
contractual and not merely a recital. All recitals are incorporated by reference
into this Agreement. Captions and section headings are used herein for
convenience only, are no part of this Agreement and shall not be used in
interpreting or construing it.
13.5 ENTIRE AGREEMENT. This Agreement constitutes a single integrated
contract expressing the entire agreement of the parties with respect to the
subject matter hereof and supersedes all prior and contemporaneous oral and
written agreements and discussions with respect to the subject matter hereof.
Notwithstanding the foregoing, the parties understand and agree that any
Nondisclosure Agreement and all other written agreements between Employee and
GTSI are separate from this Agreement and, subject to the terms and conditions
of each such agreement, shall survive the execution of this Agreement, and
nothing contained in this Agreement shall be construed as affecting the rights
or obligations of either party set forth in such agreements.
13.6 SEVERABILITY. In the event any provision of this Agreement or the
application thereof to any circumstance shall be held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, or to be excessively broad
as to time, duration, geographical scope, activity, subject or otherwise, it
shall be construed to be limited or reduced so as to be enforceable to the
maximum extent allowed by applicable law as it shall then be in force, and if
such construction shall not be feasible, then such provision shall be deemed to
be deleted herefrom in any action before that court, and all other provisions of
this Agreement shall remain in full force and effect.
13.7 AMENDMENT AND WAIVER. This Agreement and each provision hereof may be
amended, modified, supplemented or waived only by a written document
specifically identifying this Agreement and signed by each party hereto. Except
as expressly provided in this Agreement, no course of dealing between the
parties hereto and no delay in exercising any right, power or remedy conferred
hereby or now or hereafter existing at law, in equity, by statute or otherwise,
shall operate as a waiver of, or otherwise prejudice, any such rights, power or
remedy.
13.8 CUMULATIVE REMEDIES. None of the rights, powers or remedies conferred
herein shall be mutually exclusive, and each such right, power or remedy shall
be cumulative and in addition to every other right, power or remedy, whether
conferred herein or now or hereafter available at law, in equity, by statute or
otherwise.
13.9 SPECIFIC PERFORMANCE. Each party hereto may obtain specific
performance to enforce its/his rights hereunder and each party acknowledges that
failure to fulfill its/his obligations to the other party hereto would result in
irreparable harm.
13.10 VIRGINIA LAW AND LOCATION. This Agreement was negotiated, executed
and delivered within the Commonwealth of Virginia, and the rights and
obligations of the parties hereto shall be construed and enforced in accordance
with and governed by the internal laws (and not the conflict of laws) of the
Commonwealth of Virginia applicable to the construction and enforcement of
contracts between parties resident in Virginia which are entered into and fully
performed in Virginia.
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13.11 FORCE MAJEURE. Neither GTSI nor Employee shall be deemed in default
if its/his performance of obligations hereunder is delayed or become impossible
or impracticable by reason of any act of God, war, fire, earthquake, strike,
civil commotion, epidemic, or any other cause beyond such party's reasonable
control.
13.12 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
13.13 SUCCESSORS AND ASSIGNS. Neither party may assign this Agreement or
any of its rights or obligations hereunder (including, without limitation,
rights and duties of performance) to any third party or entity, and this
Agreement may not be involuntarily assigned or assigned by operation of law,
without the prior written consent of the non-assigning party, which consent may
be given or withheld by such non-assigning party in the sole exercise of its
discretion, except that GTSI may assign this Agreement to a corporation
acquiring: (1) 50% or more of GTSI's capital stock in a merger or acquisition;
or (2) all or substantially all of the assets of GTSI in a single transaction;
and except that Employee may transfer or assign his rights under this Agreement
voluntarily, involuntarily or by operation of law upon or as a result of his
death to his heirs, estate and/or personal representative(s). Any prohibited
assignment shall be null and void, and any attempted assignment of this
Agreement in violation of this section shall constitute a material breach of
this Agreement and cause for its termination by and at the election of the other
party hereto by notice. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and, except as otherwise provided herein,
their respective legal successors and permitted assigns.
13.14 PAYMENT PROCEDURE. All payments by GTSI to Employee or by Employee
to GTSI may be by, at the paying party's election, cash, wire transfer or check.
Neither party may reduce any payment or obligation due by any amount owed or
believed owed to the other party under any other agreement, whether oral or
written, now in effect or later entered into.
13.15 SURVIVAL. The definitions, representations and warranties herein as
well as obligations set forth in Sections 6, 8, 10, and 12 shall survive any
termination of this Agreement for any reason whatsoever.
13.16 NO ADMISSION. Neither the entry into this Agreement nor the giving
of consideration hereunder shall constitute an admission of any wrongdoing by
GTSI or Employee.
13.17 LIMITATION OF DAMAGES. Except as expressly set forth herein, in any
action or proceeding arising out of, relating to or concerning this Agreement,
including any claim of breach of contract, liability shall be limited to
compensatory damages proximately caused by the breach and neither party shall,
under any circumstances, be liable to the other party for consequential,
incidental, indirect or special damages, including but not limited to lost
profits or income, even if such party has been apprised of the likelihood of
such damages occurring.
13.18 RIGHT TO TERMINATE FOR CAUSE. Notwithstanding anything contained in
this Agreement to the contrary, GTSI retains the right to terminate Employee for
cause, in which case GTSI's obligations under this Agreement shall be null and
void.
13.19 EFFECTIVE DATE. Employee expressly acknowledges that he has been
advised that he has twenty one (21) days to review this Agreement before making
a decision to execute it. Employee also has been
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expressly advised that he may rescind his execution of this Agreement by
communicating such rescission in writing to GTSI within seven days of his
execution of this Agreement. This Agreement shall become effective eight days
after Employee executes this Agreement (the "Effective Date").
[SIGNATURE PAGE TO FOLLOW]
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GTSI CORP. XXXXXX X. XXXXXXX
By: /S/ Xxxxx Xxxxx Signature: /S/ Xxxxxx Xxxxxxx
Print Name: Xxxxx Xxxxx
Print Title: CEO
Date: 3/4/02 Date: 3/4/02
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EXHIBIT A
A. BONUS ELIGIBILITY.
Employee will remain eligible for the June 30, 2002 bonus on a pro-rata
basis. This pro-rata amount will be determined by taking the number of days
Employee was employed full-time (e.g, 165 for June 14) and dividing this number
by the number representing the number of days of the June 30, 2002 bonus period
(181 (June 30 bonus). The resulting percentage will be multiplied by the
applicable bonus amount for the June 30 bonus period earned by Employee if he
had worked full-time through June 30, 2002, to arrive at the amount to be paid
to Employee.
As an example, if Employee's last full day of employment is June 14, then
Employee's pro-rata share for the June 30, 2002 bonus (if earned) would be the
earned bonus amount multiplied by 91%. This percentage is determined by taking
165 (representing June 14) / 181 (representing June 30).
B. ACCRUED VACATION PAYMENT.
As part of the payment to Employee immediately at the end of the Full-Time
Period, Employee will be paid an amount representing the number of hours of
accrued but unused vacation pay.
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EXHIBIT B
OUTSTANDING STOCK OPTION PURCHASE RIGHTS
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A. OPTIONS TO BE EXERCISED FOLLOWING EFFECTIVE DATE
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GTSI
OPTIONS DATE EXERCISE PURCHASE COST AMOUNT OF
VESTED ISSUED COST PRICE DIFFERENTIAL PAYMENT BY GTSI
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30,000 8/3/1999 $4.00 $7.00 $3.00 $90,000.00
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13,333 11/2/1999 $2.88 $7.00 $4.13 $54,998.63
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1,500 11/2/2000 $3.25 $7.00 $3.75 $ 5,625.00
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44,833 *$150,623.63
*Amount to be paid following option exercise and stock buy-back immediately
following the Effective Date.
B. OPTIONS TO BE EXERCISED FOLLOWING RETIREMENT DATE
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GTSI
OPTIONS DATE EXERCISE PURCHASE COST AMOUNT OF
VESTED ISSUED COST PRICE DIFFERENTIAL PAYMENT BY GTSI
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12,500 4/15/1999 $3.13 $7.00 $3.88 $48,437.50
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10,000 8/3/1999 $4.00 $7.00 $3.00 $30,000.00
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6,667 11/2/1999 $2.88 $7.00 $4.13 $27,501.38
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1,500 11/2/2000 $3.25 $7.00 $3.75 $5,625.00
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**3,000 11/2/2000 $3.25 $7.00 $3.75 $11,250.00
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37,500 4/15/1999 $3.13 $7.00 $3.88 $145,312.50
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71,167 ***$268,126.38
** Stock options to be accelerated.
*** Amount to be paid following option exercise and stock buy-back
immediately following the Retirement Date, and conditioned upon Employee
executing GTSI's standard release and waiver agreement set out in Exhibit
C. Notwithstanding the foregoing, GTSI agrees if during the Part-Time
Period this Agreement is assigned per Section 13.13, then any of the 71,167
shares that remain unvested, shall be accelerated, and the GTSI Purchase
Price shall be the acquisition price paid (or to be paid) for GTSI capital
stock as the result of such acquisition.
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Total Shares to be Total Net Payment
Purchased by GTSI Amount to Employee
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116,000 $418,750.00
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EXHIBIT C
WAIVER LETTER TEMPLATE
Date
Name
Address
City, State zip
Dear Name:
We appreciate the contributions you have made to GTSI in the past. With your
final paycheck, regardless of whether or not you sign this letter, and
reimbursement for all approved business expenses, provided you submit your
expense report to GTSI within two weeks of the Retirement Date; and
In addition, if you sign and date this letter (the "Waiver Letter") to show that
you accept its terms (and do not later revoke it, as described below), GTSI will
offer you retirement benefits exceeding those otherwise due you under your
current compensation arrangement with us. Specifically, we will buy back your
stock options as set out in Exhibit B, Part B, of your Employment Retirement
Agreement dated _____________.
In order to qualify for the incremental benefits referred to above, you must
accept and agree to the terms of this Waiver Letter by signing it and returning
it to us within the time period referred to below. By doing so, you will be
agreeing to the following:
1. You forever release and discharge GTSI and its successors, its current and
prior stockholders of record, officers, directors, and employees, and
their heirs, representatives and assigns, past or present, from any and
all causes of action, actions, judgments, liens, indebtedness, damages,
losses, claims, liabilities, expenses and demands of any kind or character
whatsoever: whether known or unknown, suspected to exist or not suspected
to exist, anticipated or not anticipated; whether or not previously
brought before any state or federal agency, court or other governmental
entity and whether existing on or arising prior to the date of this Waiver
Letter; and which, directly or indirectly, in whole or in part, relate or
are attributable to, connected with, or incidental to your previous
employment by GTSI, your retirement, and any dealings between the parties
concerning your employment existing prior to the date of execution of this
Waiver Letter. This expressly includes ANY AND ALL CLAIMS OF
DISCRIMINATION ON ACCOUNT OF SEX, RACE, AGE, HANDICAP, VETERAN STATUS,
NATIONAL ORIGIN OR RELIGION, AND CLAIMS OR CAUSES OF ACTION BASED UPON ANY
EQUAL EMPLOYMENT OPPORTUNITY LAWS, ORDINANCES, REGULATIONS OR ORDERS,
INCLUDING TITLE VII OF THE CIVIL RIGHTS ACT OF 1964 AND THE AGE
DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS WITH DISABILITIES ACT,
EXECUTIVE ORDER 11246, THE
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REHABILITATION ACT AND ANY APPLICABLE STATE OR LOCAL ANTI-DISCRIMINATION
STATUTES. It also includes CLAIMS FOR BREACH OF ANY CONTRACT, AGREEMENT OR
PROMISES MADE PRIOR TO THIS DATE; CLAIMS FOR WRONGFUL RETIREMENT ACTIONS
OF ANY TYPE, BREACH OF EXPRESS OR IMPLIED COVENANT OF GOOD FAITH AND FAIR
DEALING; INTENTIONAL OR NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS; CLAIMS
FOR FRAUD, LIBEL, SLANDER OR INVASION OF PRIVACY. You and GTSI agree that
you are not waiving any rights or claims under the Age Discrimination In
Employment Act that may arise after your execution of this Waiver Letter.
This is intended to exclude from release only claims "that arise after"
execution of this Waiver Letter as provided for by the Older Workers
Benefit Protection Act. This release also applies to any claims or rights
that you might have or assert with respect to any claims or rights, if
any, concerning any GTSI bonus plan.
2. GTSI forever releases and discharges Employee, and his heirs, from any and
all cause or cause of action, actions, judgments, liens, indebtedness,
damages, losses, claims, liabilities, expenses and demands of any kind or
character whatsoever, whether known or unknown, anticipated or not
anticipated, whether or not previously brought before any state or federal
agency, court or other governmental entity which are existing on or
arising prior to the date of this Agreement and which, directly or
indirectly, in whole or in part, relate or are attributable to, connected
with, or incidental to the previous employment of you by GTSI, the end of
that employment, and any dealings between the parties concerning
Employee's employment existing prior to the Retirement Date set out in the
Employment Retirement Agreement ("Agreement"), excepting only claims
arising from a breach by you of the Agreement. Nothing contained in this
Section 2 shall affect any rights, claims or cause of action which GTSI
may have to make claims against or seek contribution from anyone not
released by the first sentence of this Section 2 with respect to any
matter or anyone released by the first sentence or this Section 2 with
respect to any matter not released thereby; or with respect to your
performance of the Agreement.
3. This Waiver Letter is governed by Virginia law, contains the full and
complete understanding between you and GTSI concerning its subject matter,
and except for the Employment Retirement Agreement, supersedes all prior
or concurrent representations and understandings between you and GTSI,
whether oral or written. In the event that any of its provisions or any
obligation or waiver or grant of rights by you under it is found invalid
or unenforceable pursuant to a judicial decree or decision, any such
provision, obligation, waiver or grant of rights shall remain enforceable
to the maximum extent permitted by law, and the remainder of this
agreement shall remain valid and enforceable according to its terms.
4. YOU HAVE RECEIVED (OR HAVE VOLUNTARILY AND KNOWINGLY ELECTED NOT TO
RECEIVE) INDEPENDENT LEGAL ADVICE WITH RESPECT TO THE ADVISABILITY OF
ENTERING INTO THIS WAIVER LETTER. YOU ACKNOWLEDGE THAT YOU ARE NOT
ENTITLED TO RELY UPON, NOR HAVE YOU IN FACT RELIED UPON, THE LEGAL OR
OTHER ADVICE OF GTSI OR ITS AGENTS, INCLUDING ATTORNEYS OR OTHER
EMPLOYEES, IN ENTERING INTO THIS WAIVER LETTER.
5. YOU ACKNOWLEDGE THAT YOU HAVE READ THIS WAIVER LETTER IN ITS ENTIRETY,
HAVE HAD THE OPPORTUNITY TO ASK QUESTIONS ABOUT THIS WAIVER LETTER AND TO
SEEK INDEPENDENT LEGAL COUNSEL, AND UNDERSTAND AND AGREE TO EACH
PROVISION.
If the terms and conditions of this Waiver Letter are acceptable to you, please
sign and date the enclosed copy in the space provided below. Please be aware
that: (i) GTSI advises you to consult with an attorney prior to executing this
Waiver Letter; (ii) you have twenty one (21) days from today (until
________________) within
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which to accept the terms and conditions of this Waiver Letter before our offer
to you expires; (iii) you may revoke your acceptance of this Waiver Letter
within seven days of signing it (the "Revocation Period"); and (iv) this Waiver
Letter will not become effective or enforceable until the Revocation Period
expires (the "Effective Date").
Again, we appreciate the contributions you have made to GTSI in the past and the
efforts you have expended on its behalf. We wish you well in your retirement or
whatever future endeavor awaits you.
Sincerely,
Xxxxxxx Xxxxxxxx
Vice President, Human Resources
I, name, acknowledge that I have read and understand this Waiver Letter in its
entirety, and agree to be legally bound by its terms and conditions.
___________________________________ ________________________________________
Name Date
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