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Search Executive Employment Agreement by:
Tatum
CFO Partners, LLP
Amended
Executive Services Agreement
October 4, 2005
Mr. Peter A. Deliso
LCC International, Inc.
7925 Jones Branch Drive
McLean, Virginia 22102
Dear Mr. Deliso:
Tatum CFO Partners, LLP (“Tatum”)
understands that LCC International, Inc. (“the Company”) desires to
engage a partner of Tatum to serve as chief financial officer. This Executive
Services Agreement sets forth the conditions under which such services will be
provided.
Services; Fees
Tatum will make available to the Company C.R.
“Bob” Waldron (the “Tatum Partner”), who will serve as
chief financial officer of the Company. The Tatum Partner will become an
employee and a duly elected or appointed officer of the Company and subject to
the supervision and direction of the CEO of the Company, the board of directors
of the Company, or both. Tatum will have no control or supervision over the
Tatum Partner.
The Company will pay the Tatum Partner
directly a salary of $22,916.67 a month (“Salary”). Salary may be
increased from time to time, by the Company. Starting October 26, 2005,
the Company will pay directly to Tatum, as partial compensation for the
resources provided, an amount equal to (i) 20% of Salary of the Tatum Partner
during the first and second 12 months of the term of this agreement,
(ii) 12% of Salary during the third 12 months, and (iii) $1,000 per
month during the remainder of the term of this agreement.
The Tatum Partner will be eligible to receive
Cash Bonuses under the Company’s executive incentive compensation plan.
The Tatum Partner will be eligible to receive Equity Bonuses under the
Company’s equity incentive plan. The Company will pay directly to Tatum
15% of any Cash Bonus paid to the Tatum Partner during the term of this
agreement. No payments will be due or payable by the Company with respect to
Equity Bonuses. For purposes hereof, (i) “Cash Bonus” means any
cash bonus that is paid to the Tatum Partner under the Company’s regular
annual bonus program for Company executives, (ii) “Equity Bonus”
means any stock, option, warrant, or similar right that is granted to or
exercised by the Tatum Partner, in each case in connection with services
rendered by the Tatum Partner, and (iii) “Salary” means the regular
monthly payments described above plus any severance paid to the Tatum Partner
during the term hereof, but excluding any Cash Bonus, Equity Bonus, benefits
(including medical benefits subsidy paid to Employee), and other compensation.
All compensation payable or deliverable to Tatum is referred to herein as the
“Resource Fee.”
In lieu of the Tatum Partner participating in
the Company-sponsored employee medical/dental insurance benefit, the Tatum
Partner will remain on his or her current medical/dental plan. The Company will
reimburse the Tatum Partner for amounts paid by the Tatum Partner for such
medical/dental insurance for himself and (where applicable) his family of up to
$ 324.00 per month upon presentation of reasonable documentation of premiums
paid by the Tatum Partner. In accordance with the U.S. federal tax law, such
amount will not be considered reportable W-2 income, but instead non-taxable
benefits expense.
As an employee, the Tatum Partner will be
eligible for any Company employee retirement and/or 401(k) plan and for
vacation and holidays consistent with the Company’s policy as it applies
to senior management, and the Tatum Partner will be exempt from any delay
periods otherwise required for eligibility.
Payments;
Payments to Tatum should be made by direct
deposit through the Company’s payroll, or by an automated clearing house
(“ACH”) payment at the same time as payments are made to the
Employee. If such payment method is not available and payments are made by
check, Tatum will issue invoices to the Company, and the Company agrees to pay
such invoices no later than ten (10) days after receipt of invoices.
The Company will reimburse the Tatum Partner
directly for out-of-pocket expenses incurred by the Tatum Partner in providing
services hereunder to the same extent that the Company is responsible for such
expenses of senior managers of the Company.
Converting to Permanent
The Company will have the opportunity to make
the Tatum Partner a permanent member of Company management at any time during
the term of this agreement by entering into another form of Tatum agreement,
the terms of which will be negotiated at such time.
Hiring Tatum Partner Outside of Agreement
During the twelve (12)-month period following
termination or expiration of this agreement, other than in connection with
conversion to a Permanent Employee under the previous paragraph, the Company
will not employ the Tatum Partner, or engage the Tatum Partner as an
independent contractor, to render services of substantially the same nature as
those to be performed by the Tatum Partner as contemplated by this agreement.
The parties recognize and agree that a breach by the Company of this provision
would result in the loss to Tatum of the Tatum Partner’s valuable
expertise and revenue potential and that such injury will be impossible or very
difficult to ascertain. Therefore, in the event this provision is breached,
Tatum will be entitled to receive as liquidated damages an amount equal to
twenty-five percent (25%) of the Tatum Partner’s Annualized Compensation
(as defined below), which amount the parties agree is reasonably proportionate
to the probable loss to Tatum and is not intended as a penalty. The amount will
be due and payable to Tatum upon written demand to the Company. For this
purpose, ''Annualized Compensation’’ will mean monthly Salary
equivalent to what the Tatum Partner would receive on a full-time basis
multiplied by twelve (12), plus the maximum amount of any Cash Bonus for which
the Tatum Partner was eligible with respect to the then current bonus year, and
which the Tatum Partner had a reasonable opportunity to receive given any
relevant performance or other criteria and/or the Company’s then-current
bonus practices, provided that such payment shall be pro rated on the basis of
the number of days the Tatum Partner actually performed services hereunder
within the applicable annual bonus period.
Termination
The Company may terminate this agreement, and
the Tatum Partner’s employment, for any reason or for no reason at
anytime upon at least 30 days’ prior written notice to the Tatum
Partner, such termination to be effective on the date specified in the notice,
provided that such date is no earlier than 30 days from the date of
delivery of the notice. Upon any such termination, the company shall have no
further obligation or liability hereunder except (a) the payment of any
Salary earned but unpaid as of the effective date of termination, and
(b) the payment of any Severance Payment due and payable under the
following paragraph of this agreement. Likewise, Tatum may terminate his
employment for any reason upon at least 30 days’ prior written
notice to the Company, such termination to be effective on the date
30 days following the date of the notice. The Tatum Partner will continue
to render services (unless placed on leave for such period by the Company) and
to be paid during such 30-day period, regardless of who gives such notice.
Tatum may terminate this agreement immediately if the Company has not remained
current in its obligations under this letter or if the Company engages in or
asks the Employee to engage in or to ignore any illegal or unethical conduct.
This agreement will terminate immediately
upon the death or disability of the Employee. For purposes of this agreement,
disability will be as defined by the applicable policy of disability insurance
or, in the absence of such insurance, by the Company’s Board of Directors
acting in good faith.
Tatum retains the right to terminate this
agreement immediately if (1) the Company is engaged in or asks the Tatum
Partner to engage in or to ignore any illegal or unethical activity,
(2) the Tatum Partner dies or becomes disabled, (3) the Tatum Partner
ceases to be a partner of Tatum for any other reason, or (4) upon ten days
advance written notice by Tatum of non-payment by the Company of amounts due
under this agreement, unless such amounts are paid. For purposes of this
agreement, disability will be as defined by the applicable policy of disability
insurance or, in the absence of such insurance, by Tatum’s management
acting in good faith.
The Tatum Partner’s Salary will be
prorated for the final pay period based on the number of days in the final pay
period up to the effective date of termination or expiration.
Severance Payment
In the event of termination of employment by the Company due to no fault of Tatum or the Tatum Partner, the Employee will be entitled to receive severance benefits in accordance with the Company’s then-current separation guidelines and practice for executives at the same level taking into consideration tenure and other factors deemed relevant by the CEO and/or the Company’s Board of Directors. The payment of such severance shall be contingent upon the Tatum Partner’s having executed and del






