MTM TECHNOLOGIES, INC.
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EMPLOYMENT AGREEMENT
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This EMPLOYMENT AGREEMENT (this "Agreement") is made this 1st day of
October , 2004 by and between MTM Technologies, Inc., a New York corporation
(the "Company"), and Xxxxxx Xxxxxxxx (the "Executive").
WHEREAS, the parties hereto wish to enter into a employment agreement to
employ the Executive as an Executive Vice president and the Chief Operating
Officer of the Company and to set forth the terms and conditions of such
employment.
NOW, THEREFORE, in consideration of the mutual covenants and
representations contained herein, and for other good and valuable consideration
the receipt and adequacy of which is hereby acknowledged, the parties hereto
agree as follows:
1. Employment Period.
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The Company hereby employs the Executive, and the Executive agrees to serve
the Company, under the terms of this Agreement for a term of two (2) years (the
"Initial Term") commencing as of the date of this Agreement (the "Commencement
Date"). Notwithstanding the foregoing, the Executive's employment hereunder may
be earlier terminated, subject to Section 4 hereof. On each anniversary of the
Commencement Date following the Initial Term, the term of this Agreement shall
automatically be extended for an additional period of twelve (12) months;
provided, however, that either party hereto may elect not to extend this
Agreement by giving written notice of non-renewal to the other party at least
twelve (12) months prior to any such anniversary date. The Initial Term and any
renewal periods thereafter, until the termination of the Executive's employment
hereunder, shall be referred to herein as the "Employment Period."
2. Duties and Status.
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The Company hereby engages the Executive as an Executive Vice President and
Chief Operating Officer of the Company on the terms and conditions set forth in
this Agreement. During the Employment Period, the Executive shall report
directly to the Company's Chief Executive Officer and exercise such authority,
perform such executive duties and functions and discharge such executive
responsibilities as are reasonably associated with the Executive's position,
consistent with the responsibilities assigned to officers of companies
comparable to the Company, commensurate with the authority vested in the
Executive pursuant to this Agreement and consistent with the By-laws of the
Company. The Executive will render such business and professional services in
the performance of his duties, consistent with the Executive's position within
the Company, as shall reasonably be assigned to him by the Company's Chief
Executive Officer. During the Employment Period, the Executive shall devote
substantially all of his business time and his full skill and efforts to the
business of the Company.
3. Compensation; Benefits and Expenses.
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(a) Salary. During the period commencing on the date hereof through
December 31, 2004 the Company shall pay to the Executive, as compensation for
the performance of his duties and obligations under this Agreement, a base
salary at the rate of $12,500 per month, payable in arrears not less frequently
than monthly in accordance with the normal payroll practices of the Company.
Thereafter, during the remainder of the Employment Period, the Company shall pay
to the Executive, as compensation for the performance of his duties and
obligations under this Agreement, a base salary at the rate of $300,000 per
annum, payable in arrears not less frequently than monthly in accordance with
the normal payroll practices of the Company. The Executive's base salary shall
be subject to review each year for possible increase by the Company's Board of
Directors ("Board") in its sole discretion, but in no event shall such base
salary be decreased from its then existing level during the Employment Period.
(b) Bonus. During the Employment Term the Executive (i) shall receive
a quarterly bonus of $37,500 during 2005 and (ii) commencing January 1, 2006
shall be eligible to receive a quarterly bonus of $37,500 based upon the
achievement of certain budgeted earnings before income tax, depreciation and
amortization as approved by the Board and other criteria to be established by
the Board in its discretion at the beginning of each fiscal year and adjusted
from time to time.
(c) Stock Options. The Executive shall be entitled to receive awards
under any stock option or equity based incentive compensation plan or
arrangement adopted by the Company during the Employment Period for which senior
executives are eligible. The level of the Executive's participation in any such
plan or arrangement shall be determined in the sole discretion of the Board and
the Compensation Committee thereof.
(d) Vacation and Sick Leave. The Executive shall be entitled to four
(4) weeks paid vacation time per calendar year and such paid sick leave as is in
accordance with the normal Company policies and practices in effect from time to
time for senior executives; provided, however, that no more than two weeks of
such vacation time may be used consecutively, and provided, further, that any
accrued but unused vacation time and paid sick leave remaining at the end of
each calendar year shall be forfeited.
(e) Other Benefits. During the Employment Period, the Executive shall
be entitled to participate in all of the employee benefit plans, programs and
arrangements of the Company in effect during the Employment Period which are
generally available to the most senior executives of the Company (including,
without limitation, 401(k) and group medical insurance plans), subject to and on
a basis consistent with the terms, conditions and overall administration of such
plans, programs and arrangements.
(f) Expenses. In addition to any amounts payable to the Executive
pursuant to this Section 3, the Company shall reimburse the Executive upon
production of accounts and vouchers or other reasonable evidence of payment by
the Executive, all in accordance with the Company's regular procedures in effect
from time to time, all reasonable and ordinary expenses as shall have been
incurred by him in the performance of his duties hereunder.
4. Termination of Employment.
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(a) Termination for Cause. The Company may terminate the Executive's
employment hereunder for cause. For purposes of this Agreement and subject to
the Executive's opportunity to cure as provided in Section 4(c) hereof, the
Company shall have "cause" to terminate the Executive's employment hereunder if
such termination shall be the result of:
(i) the Executive's failure to comply in any material manner with the
reasonable policies and rules of the Company or the directives of the Board; or
(ii) the Executive's performance of any material act of fraud or
dishonesty in connection with
the performance of his duties hereunder; or
(iii) the Executive's gross negligence or willful misconduct in the
performance of his duties hereunder; or
(iv) the Executive's conviction for, or plea of nolo contendere to, a
felony or misdemeanor resulting in a jail sentence or any crime involving moral
turpitude; or
(v) any material breach by the Executive of the obligations set forth
below in Section 7.
(b) Termination for Good Reason. The Executive shall have the right at
any time to terminate his employment with the Company for any reason. For
purposes of this Agreement and subject to the Company's opportunity to cure as
provided in Section 4(c) hereof, the Executive shall have "good reason" to
terminate his employment hereunder if such termination shall be the result of:
(i) a reduction by the Company of the Executive's base salary; or
(ii) a material diminution during the Employment Period in the
Executive's duties or responsibilities, as set forth in Section 2 hereof; or
(iii) the relocation, without the Executive's prior written consent,
of the Executive's principal work location beyond 50 miles from its current
location.
(c) Notice and Opportunity to Cure. Notwithstanding the provisions of
Sections 4(a) and 4(b) hereof, it shall be a condition precedent to the
Company's right to terminate the Executive's employment for "cause" and the
Executive's right to terminate his employment for "good reason" that (1) the
party seeking the termination shall first have given the other party written
notice stating with reasonable specificity the reason for the termination
("breach") and (2) if such breach is susceptible of cure or remedy, a period of
thirty days from and after the giving of such notice shall have elapsed without
the breaching party having effectively cured or remedied such breach during such
30-day period, unless such breach cannot be cured or remedied within thirty
days, in which case the period for remedy or cure shall be extended for a
reasonable time (not to exceed an additional thirty days) provided the breaching
party has made and continues to make a diligent effort to effect such remedy or
cure. Notwithstanding anything to the contrary contained herein, the right to
cure set forth in this Section 4(c) shall not apply if there are habitual or
repeated breaches by either party.
(d) Termination Upon Death or Permanent and Total Disability. The
Employment Period shall be terminated by the death of the Executive. The
Employment Period may be terminated by the Board if the Executive shall be
rendered incapable of performing his duties to the Company by reason of any
medically determined physical or mental impairment for a period of either (i)
six (6) or more consecutive months from the first date of the Executive's
absence due to the disability or (ii) nine (9) months during any eighteen (18)
month period (a "Permanent and Total Disability"). If the Employment Period is
terminated by reason of Permanent and Total Disability of the Executive, the
Company shall give 30 days' advance written notice to that effect to the
Executive. Until the effective date of the termination as a result of a
Permanent and Total Disability, the Company shall continue to pay to the
Executive the compensation set forth in Section 3 hereof; provided, however,
that to the extent that the Executive receives payments pursuant to any
disability insurance policy for which the Company pays the premium, the Company
may deduct the amounts received by the Executive pursuant to that policy from
the compensation payable to him.
5. Consequences of Termination.
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(a) Without Cause or for Good Reason. In the event of a termination of
the Executive's employment during the Employment Period by the Company other
than for "cause" (as provided for in Section 4(a) hereof) or by the Executive
for "good reason" (as provided for in Section 4(b) hereof) or as a result of
death or Permanent and Total Disability (as provided for in Section 4(d)
hereof), the Company shall provide to the Executive (or his legal
representative) (i) the rights, payments and benefits payable at such times as
set forth herein, and (ii) a release and waiver of claims in favor of the
Executive, substantially in the form attached hereto as Exhibit A, as
consideration for the execution and non-revocation by the Executive of a release
agreement in favor of the Company and its shareholders and their respective
directors, officers and employees, substantially in the form attached hereto as
Exhibit B:
(i) Salary. A continuance of his salary at one hundred percent (100%)
of his then current base salary, as a severance payment, for a period equal to
the greater of (i) one (1) year from the date of termination of the Executive's
employment or (ii) the period ending on the last day of the Initial Term (the
"Severance Period"). Any payments pursuant to this Section 5(a)(i) shall be in
lieu of any other severance benefits to which the Executive is entitled pursuant
to any other severance plans, programs, arrangements, or policies of the
Company.
(ii) Options and Equity Incentives. The impact of the Executive's
termination of employment on the stock options or other equity incentives held
by the Executive (including, without limitation, the maximum period that any
such option or other equity incentive shall remain exercisable) shall be
governed by the applicable equity incentive plan and agreement. Notwithstanding
the foregoing, any stock options or other equity incentives granted to the
Executive on or after the Commencement Date shall provide that, upon termination
of the Executive's employment by the Company other than for "cause" (as provided
for in Section 4(a) hereof) or by the Executive for "good reason" (as provided
for in Section 4(b) hereof), any unvested shares subject to such options or
other equity incentives shall become fully vested and immediately exercisable in
connection with such termination.
(iii) Other Benefits. During the Severance Period, the Executive will
be entitled to a continuance of coverage under all health, life, disability and
similar employee benefit plans and programs of the Company on the same basis as
the Executive was entitled to participate immediately prior to the commencement
of the Severance Period, provided that the Executive's continued participation
is possible under the general terms and provisions of such plans and programs.
In the event that the Executive's participation in any such plan or program is
barred for any reason, the Company shall arrange to provide the Executive with
benefits substantially similar to those which the Executive would otherwise have
been entitled to receive under such plans and programs from which his continued
participation is barred; provided , however , that the aggregate cost of
providing benefits to the Executive pursuant to this Section 5(a)(iii) shall not
be materially increased as a result of providing such alternative coverage. In
the event that the Executive is covered under substitute benefit plans of
another employer prior to the expiration of the Severance Period, the Company
will no longer be obligated to continue the respective coverages provided for in
this Section 5(a)(iii).
(b) Other Termination of Employment. In the event that the Executive's
employment with the Company is terminated during the Employment Period by the
Company for "cause" (as provided for in Section 4(a) hereof), or by the
Executive other than for "good reason" (as provided for in Section 4(b) hereof),
the Company shall pay the Executive (or his legal representative) any earned but
unpaid salary amounts and any unreimbursed expenses through the Executive's
final date of employment with the Company, and the Company shall have no further
obligations to the Executive, except under the plans, programs and arrangements
described in Section 3(e) hereof in accordance with the terms of such plans.
(c) Withholding of Taxes. All payments required to be made by the Company
to the Executive under this Agreement shall be subject to the withholding of
such amounts, if any, relating to tax, excise tax and other payroll deductions
as the Company may reasonably determine it should withhold pursuant to any
applicable law or
regulation.
(d) No Other Obligations. The benefits payable to the Executive under
this Agreement are not in lieu of any benefits payable under any employee
benefit plan, program or arrangement of the Company, except as provided
specifically herein, and upon termination, the Executive will receive such
benefits or payments, if any, as he may be entitled to receive pursuant to the
terms of such plans, programs and arrangements. Except for the obligations of
the Company provided by this Agreement (including, without limitation, pursuant
to the preceding sentence hereof), the Company shall have no further obligations
to the Executive upon his termination of employment.
(e) Reduction for "Parachute Payments". Notwithstanding anything in this
Agreement to the contrary, any amounts payable hereunder to the Executive in
connection with a change in control, as well as any other "parachute payments,"
as such term is defined under Section 280G of the Internal Revenue Code of 1986,
as amended (the "Code"), payable under any other plans, agreements or policies
of the Company, shall be reduced to the extent necessary to assure that the
Executive does not become subject to the excess parachute payment excise tax
under Section 4999 of the Code and the Company does not lose all or part of its
compensation deduction for such payments.
6. Indemnity.
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The Company shall, during his employment with the Company and thereafter,
indemnify the Executive to the fullest extent permitted by law and by its
Certificate of Incorporation and By-laws and shall assure that the Executive is
covered by the Company's directors' and officers' insurance policies and any
other insurance policies that protect employees, as in effect from time to time.
7. Restrictive Covenants.
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(a) Proprietary Information.
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(i) The Executive agrees that all information and know-how, whether
or not in writing, of a private, secret or confidential nature concerning the
business or financial affairs of the Company or any of the Company's Affiliates
is and shall be the exclusive property of the Company or the Company's
Affiliates. Such information and know-how shall include, but not be limited to,
inventions, products, processes, methods, techniques, formulas, compositions,
compounds, projects, developments, plans, research data, clinical data,
financial data, personnel data, computer programs, and customer and supplier
lists (collectively, "Proprietary Information."). Except in connection with, and
on a basis consistent with, the performance of his duties hereunder, the
Executive shall not disclose any Proprietary Information to others outside the
Company or the Company's Affiliates or use the same for any unauthorized
purposes without written approval by the Board, either during or after the
Employment Period.
(ii) The Executive agrees that all files, letters, memoranda,
reports, records, data, sketches, drawings, laboratory notebooks, program
listings, customer lists, customer solicitations or other written, photographic,
or other tangible material containing Proprietary Information, whether created
by the Executive or others, which shall come into his custody or possession,
shall be and are the exclusive property of the Company or the Company's
Affiliates to be used by the Executive only in the performance of his duties for
the Company. The Executive agrees to deliver to the Company upon the expiration
of the Employment Period such material containing Proprietary Information.
(iii) The Executive agrees that his obligation not to disclose or use
information, know-how and records of the types set forth in paragraphs (i) and
(ii) above, also extends to such types of information, know-how, records and
tangible property of customers of the Company or the Company's Affiliates or
suppliers to the Company or the Company's Affiliates or other third parties who
may have disclosed or entrusted the same to the Company or the Company's
Affiliates or to the Executive in the course of the Company's business.
(iv) Notwithstanding the foregoing, such Proprietary Information
shall not include information which (A) is or becomes generally available or
known to the public, other than as a result of any disclosure by the Executive
in violation hereof; or (B) is or becomes available to the Executive on a
non-confidential basis from any source other than the Company, other than any
such source that the Executive knows is prohibited by a legal, contractual, or
fiduciary obligation to the Company from disclosing such information.
(v) Other than in connection with any requirements pursuant to
applicable "whistleblower" statutes, in the event that the Executive is
requested pursuant to, or becomes compelled by, any applicable law, regulation,
or legal process to disclose any Proprietary Information, the Executive shall
provide the Company with prompt written notice thereof so that the Company may
seek a protective order or other appropriate remedy or, in the Company's sole
and absolute discretion, waive compliance with the terms hereof. In the event
that no such protective order or other remedy is obtained, or the Company waives
compliance with the terms hereof, the Executive shall furnish only that portion
of such Proprietary Information which the Executive is advised by counsel is
legally required. The Executive will cooperate with the Company, at the
Company's sole cost and expense, in its efforts to obtain reliable assurance
that confidential treatment will be accorded such Proprietary Information.
(b) Developments.
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(i) The Executive shall make full and prompt disclosure to the
Company of all inventions, improvements, discoveries, methods, developments,
software, and works of authorship, whether patentable or not, which are created,
made, conceived or reduced to practice by the Executive or under his direction
or jointly with others during the Employment Period, whether or not during
normal working hours or on the premises of the Company or the Company's
Affiliates (collectively, "Developments").
(ii) The Executive agrees to assign and does hereby assign to the
Company (or any entity designated by the Company) all his right, title and
interest in and to all Developments and all related patents, patent
applications, copyrights and copyright applications. The Executive also hereby
waives all claims to moral rights in any Developments.
(iii) Notwithstanding anything to the contrary contained herein, the
provisions of Sections 7(b)(i) and 7(b)(ii) hereof shall not apply to
Developments which consist of products (and not of services) which do not relate
to the present or planned business or research and development of the Company or
the Company's Affiliates and which are made and conceived by the Executive not
during normal working hours, not on the premises of the Company or the Company's
Affiliates and not using the tools, devices, equipment or personnel of the
Company or the Company's Affiliates or Proprietary Information.
(iv) The Executive agrees to cooperate fully with the Company or the
Company's Affiliates, both during and after the Employment Period, with respect
to the procurement, maintenance and enforcement of copyrights and patents (both
in the United States and foreign countries) relating to Developments. The
Executive shall sign all papers, including, without limitation, copyright
applications, patent applications, declarations, oaths, formal assignments,
assignment of priority rights, and powers of attorney, which the Company or the
Company's Affiliates may deem reasonably necessary or desirable in order to
protect their rights and interests in any Development.
(c) Other Agreements. The Executive represents that his performance of
all the terms of this Agreement and as an employee of the Company does not and
will not breach any agreement, other than agreements with the Company's
Affiliates, (i) to keep in confidence proprietary information, knowledge or data
acquired by him in confidence or in trust prior to his employment with the
Company, (ii) to refrain from competing, directly or indirectly, with the
business of his previous employer or any other party, and (iii) to refrain from
soliciting the employment of any employees of his previous employer or any other
party.
(d) Non-Competition and Non-Solicitation. During the Executive's
employment hereunder and for a period of: (i) two (2) years thereafter upon the
Executive's termination of employment by giving notice of non-renewal as set
forth in Section 1 hereto, (ii) one (1) year thereafter upon the Company's
termination of the Executive's employment by giving notice of non-renewal as set
forth in Section 1 hereto, or (iii) two (2) years thereafter upon the
termination of employment by either the Executive or the Company for any reason
other than those set forth in (i) and (ii), without the prior written consent of
the Company, the Executive shall not engage (whether as an employee, consultant,
director or independent contractor) in any Business Activities on behalf of any
person, firm or corporation, and the Executive shall not acquire any financial
interest (except for equity interests in publicly-held companies that will not
be significant and that, in any event, will not exceed five percent (5%) of
equity of that company) in any entity which engages in Business Activities
within 200 miles of any of the Company's offices in operation on the
Commencement Date and within 100 miles of any office of the Company established
after the Commencement Date. During the period that the above noncompetition
restriction applies, the Executive shall not, without the written consent of the
Company: (i) solicit any employee of the Company or any of the Company's
Affiliates to terminate his employment, or (ii) solicit any customers, partners,
resellers, vendors or suppliers of the Company on behalf of any individual or
entity other than the Company or its Affiliates. As used herein, the term
"Business Activities" shall mean conduct of business as a middle market
information technology service provider focused on network management and
monitoring, LAN-WAN broadband, security, storage, messaging and Voice Over
Internet Protocol (VOIP).
(e) Enforcement. The Company shall be entitled to seek a restraining
order or injunction in any court of competent jurisdiction to prevent any
continuation of any violation of the provisions of this Section 7.
(f) Affiliates. For purposes hereof, the Company's Affiliates shall mean
any individual or entity that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with the
Company. For purposes of this definition, "control" means the power to direct
the management and policies of another, whether through the ownership of voting
securities, by contract or otherwise.
8. Notice.
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All notices, requests and other communications pursuant to this Agreement
shall be in writing and shall be deemed to have been duly given, if delivered in
person against written receipt therefor, or by overnight courier, or sent by
express, registered or certified mail, postage prepaid, addressed as follows:
If to the Executive:
0000 Xxxxxx Xxxxx Xxxx
Xxx Xxxxxx, XX 00000
If to the Company:
MTM Technologies, Inc.
000 Xxxxx Xxxxxx
Xxxxxxxx, XX 00000
Fax: 000 000 0000
Attn: General Counsel
Either party may, by written notice to the other, change the address to which
notices to such party are to be delivered or mailed.
9. Dispute Resolution; Mediation and Arbitration.
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Except as specifically provided herein, any dispute or controversy arising
under or in connection with this Agreement shall be, upon the demand of either
party, subject to a non-binding mediation proceeding before a mediator on the
panel of the CPR Institute for Dispute Resolution, such mediator to be agreed
upon by the parties. If a mediator is not agreed upon or if mediation is not
successful, the matter shall be settled exclusively by arbitration, conducted
before a single arbitrator mutually selected by the parties, in the State of New
York, in accordance with the rules of the American Arbitration Association then
in effect. If the parties are unable to agree on a single arbitrator, each party
shall select an arbitrator and the two arbitrators selected by the parties shall
select a third arbitrator. If three arbitrators are selected, they shall act by
majority vote. Judgment may be entered on the arbitrator's award in any court
having jurisdiction. Each party shall bear their own costs and expenses of any
such mediation or arbitration proceeding and shall split evenly any common
costs; provided, however, that if the dispute concerns the issue of termination
for "cause" or resignation for "good reason," the non-prevailing party shall pay
for all of the prevailing party's costs and expenses, including legal fees
relating to such mediation or arbitration proceeding.
10. Waiver of Breach.
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Any waiver of any breach of this Agreement shall not be construed to be a
continuing waiver or consent to any subsequent breach on the part either of the
Executive or of the Company.
11. Non-Assignment; Successors.
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Neither party hereto may assign his or its rights or delegate his or its
duties under this Agreement without the prior written consent of the other
party; provided, however, that (i) this Agreement shall inure to the benefit of
and be binding upon the successors and assigns of the Company upon any sale of
all or substantially all of the Company's assets, or upon any merger,
consolidation or reorganization of the Company with or into any other
corporation, all as though such successors and assigns of the Company and their
respective successors and assigns were the Company; and (ii) this Agreement
shall inure to the benefit of and be binding upon the heirs, assigns or
designees of the Executive to the extent of any payments due to them hereunder.
As used in this Agreement, the term "Company" shall be deemed to refer to any
such successor or assign of the Company referred to in the preceding sentence.
12. Severability.
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To the extent any provision of this Agreement or portion thereof shall be
invalid or unenforceable, it shall be considered deleted therefrom and the
remainder of such provision and of this Agreement shall be unaffected and shall
continue in full force and effect.
13. Counterparts.
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This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together will constitute one
and the same instrument.
14. Governing Law.
This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of New York, without giving effect to the
choice of law principles thereof.
15. Entire Agreement.
This Agreement constitutes the entire agreement by the Company and the
Executive with respect to the subject matter hereof and except as specifically
provided herein, supersedes any and all prior agreements or understandings
between the Executive and the Company with respect to the subject matter hereof,
whether written or oral. This Agreement may be amended or modified only by a
written instrument executed by the Executive and the Company.
[SIGNATURES ON NEXT PAGE]
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
October 1, 2004.
/s/ Xxxxxx Xxxxxxxx
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Xxxxxx Xxxxxxxx
MTM TECHNOLOGIES, INC.
By: /s/ Xxxxxxx X. Xxxxxx
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Print Name: Xxxxxxx X. Xxxxxx
Print Title: Chief Executive Officer
Exhibit A
RELEASE OF CLAIMS AND COVENANT NOT TO XXX
This RELEASE OF CLAIMS AND COVENANT NOT TO XXX is executed and delivered by
MTM Technologies, Inc., a New York corporation (the "Company"), to
________________(the "Executive").
Pursuant to the provisions of Section 5(a) of the employment agreement
between the Company and the Executive dated , 2004 (the "Employment Agreement ")
the Company hereby agrees as follows:
The Company and its affiliates release and forever discharge the Executive
from, and covenant not to xxx or proceed against the Executive on the basis of,
any and all past or present causes of action, suits, agreements or other claims
which the Company or its affiliates have against the Executive upon or by reason
of any matter, cause or thing whatsoever, including, but not limited to, any
matters arising out of his employment by the Company and the cessation of said
employment. This release shall not, however, constitute a waiver of any of the
Company's rights under the Employment Agreement. The Company hereby covenants
that it has not transferred or assigned to any person or entity any of the
claims that are subject to this release and covenant.
This RELEASE OF CLAIMS AND COVENANT NOT TO XXX is executed by the
Company and delivered to the Executive on , 2004 .
MTM TECHNOLOGIES, INC.
By:___________________________
Print Name:____________________
Print Title:_____________________
Exhibit B
RELEASE AGREEMENT
This RELEASE AGREEMENT (the " Agreement ") is made as of , 2004 by and
between MTM Technologies, Inc., a New York corporation (the "Company"), and
___________________ (the "Executive").
Recitals:
A. The Company and the Executive are parties to an Employment Agreement
dated , 2004 (the " Employment Agreement "). Capitalized terms that are not
otherwise defined herein shall have the meanings ascribed to such terms in the
Employment Agreement.
B. Effective as of , 2004 (the "Separation Date"), the Executive's
employment with the Company was or will be terminated.
C. The Company is not obligated to pay the Executive any additional
compensation or benefits other than that which has been earned as of the
Executive's Separation Date and other than that which is set forth in the
Employment Agreement. This Agreement is the Release Agreement referenced in the
Employment Agreement and the payment of the severance benefits set forth in the
Employment Agreement is conditioned upon the execution and delivery by the
Executive of this Agreement.
Agreement:
NOW, THEREFORE, in return for good and valuable consideration and in
consideration of the premises and the mutual promises made hereafter, the
Executive and the Company agree as follows:
1. Employment Agreement. Subject to the terms and conditions of the
Employment Agreement; (a) the Company agrees to pay the Executive the severance
payments and to otherwise comply with the provisions of the Employment
Agreement, as the case may be, and (b) the Executive agrees to comply with the
restrictive covenants in Section 7 of the Employment Agreement and to otherwise
comply with the provisions of the Employment Agreement.
2. Acknowledgment. The Executive and the Company acknowledge that the
amounts to be paid pursuant to the Employment Agreement are in excess of any
earned wages or benefits due and owing the Executive through his Separation
Date.
3. Release. In exchange for the good and valuable consideration set forth
in Section 1 of this Agreement, the Executive, on behalf of himself, his heirs,
executors and assigns, releases, waives and discharges any and all manner of
action, causes of action, claims, rights, charges, suits, damages, debts,
demands, obligations, attorneys' fees, or any and all other liabilities or
claims of whatsoever nature, whether in law or in equity, known or unknown,
including, but not limited to, any claim and/or claim of damages or other relief
for tort, breach of contract, personal injury, negligence, age discrimination
under The Age Discrimination In Employment Act of 1967, any alleged violation of
the Civil Rights Acts of 1964 and 1991, the Equal Pay Act of 1963, the
Rehabilitation Act of 1973, the Older Workers Benefit Protection Act of 1990,
the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of
1993, any employment discrimination prohibited by other federal, state or local
laws, including, but not limited to, sex, race, national origin, marital status,
age, handicap, height, weight, or religious discrimination, and any other claims
for unlawful employment practices which the Executive has claimed or may claim
or could claim in any local, state or federal forum, against the Company, its
shareholders and their respective directors, officers, employees, successors and
assigns, affiliates and all others, as a result of the Executive's employment
at, and separation of employment from, the Company; provided that , the
Executive and the Company retain the right to enforce this Agreement and the
provisions of Section 5(a) of the Employment Agreement. The Executive hereby
covenants that he has not transferred or assigned to any person or entity any of
the claims that are subject to this release and covenant.
4. Irrevocable Bar. The parties intend that this Agreement will irrevocably
bar any action or claim whatsoever by the Executive against the Company for any
resultant injuries or damages, whether known or unknown, sustained or to be
sustained, as a result of any of the Company's acts, omissions and conduct
having occurred up to the present date, including, but not limited to, the
Executive's employment with the Company and the termination of that employment,
other than those concerning this Agreement and the provisions of Section 5(a) of
the Employment Agreement.
5. Rights or Claims Arising After the Date Hereof. The Executive and the
Company understand that the Executive is not waiving rights or claims that may
arise as a result of any act, omission or conduct of the Company occurring after
the date this Agreement is executed.
6. Review of Agreement. The Executive understands and agrees that he has
read this Agreement carefully and understands all of its terms.
7. Advice to Consult Attorney. The Executive understands and agrees that he
is advised to consult with an attorney prior to executing this Agreement.
8. Period within which to Consider Agreement. The Executive understands and
agrees that he has been given 21 days (or more) within which to consider this
Agreement.
9. Revocation. The Executive understands and agrees that he may revoke this
Agreement for a period of seven (7) calendar days following the execution of
this Agreement. Neither this Agreement nor the Company's obligations under
Section 5(a) of the Employment Agreement shall be effective until this
revocation period has expired (at which time such obligations shall be
effective, retroactive to the time contemplated in the Employment Agreement).
Without limiting the generality of the foregoing, the provisions of Section 7 of
the Employment Agreement (relative to restrictive covenants) shall not be
terminated or otherwise affected by any revocation of this Agreement. The
Executive understands that any revocation, to be effective, must be in writing
and received, within seven (7) days of execution of this Agreement, by the
Company at its principal executive offices.
10. Voluntary Action; No Reliance. In agreeing to sign this Agreement, the
Executive is doing so completely voluntarily and agrees that he has not relied
on any oral statements or explanations made by the Company or its
representatives.
11. Nondisclosure. Both parties agree not to disclose the terms of this
Agreement to any third party, except as is required by law, or as is necessary
for purposes of securing counsel from either parties' attorneys or accountants.
12. No Disparaging Statements. The Executive and the Company agree not to
make any disparaging statements about the other.
13. Full Accord and Satisfaction. This Agreement is in full accord and
satisfaction and compromise of the claims of the Executive and the Company and
is not to be construed as an admission of liability on the part of the Company.
14. Miscellaneous. The headings in this Agreement are inserted for
convenience of reference only and shall not be a part of or control or affect
the meaning of any provision hereof. This Agreement maybe executed in
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument, and shall bind and shall
inure to the benefit of the parties hereto, and their respective successors and
assigns. Copies (photostatic, facsimile or otherwise) of this Agreement and
signatures hereto shall be deemed to be originals and may be relied on to the
same extent as the manually-signed originals. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York.
15. Entire Agreement, Modification. This Agreement contains the entire
agreement between the Executive and the Company with respect to the subject
matter hereof. Any modification of this Agreement must be made in writing and
signed by the Executive and an officer specifically authorized to do so by the
Board of Directors of the Company.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first written above.
Witness:
--------------------------------- ------------------------------
(EXECUTIVE)
MTM TECHNOLOGIES, INC.
_________________________________ By:___________________________
Print Name:____________________
Print Title:_____________________
