Tatum CFO Partners, LLP Interim Executive Services AgreementExecutive Employment Agreement |
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Exhibit
10.2
Tatum
CFO Partners, LLP Interim
Executive Services Agreement
April 19, 2005
Mr. Peter A. Deliso
Mr. C. Thomas Faulders, III
LCC International, Inc.
7925 Jones Branch Drive
McLean, Virginia 22102
Dear Mr. Deliso and Mr. Faulders:
Tatum CFO Partners, LLP (“Tatum”)
understands that LCC International, Inc. (“the Company”) desires to
engage a partner of Tatum to serve as interim chief financial officer. This
Interim 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
interim chief financial officer of the Company. The Tatum Partner will become
an employee and, if applicable, 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 $22,000 a month. In addition, the Company will pay
directly to Tatum a fee of $5,500 a month (“Fees”) as partial
compensation for resources provided.
The Company will have no obligation to
provide the Tatum Partner any health or major medical benefits, stock, or bonus
payments. The Tatum Partner will remain on his or her current medical plan.
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 Interim 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
another Tatum agreement, 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. If, however, a court or arbitrator, as applicable, determines that
liquidated damages are not appropriate for such breach, Tatum will have the
right to seek actual damages. 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 bonus for which the Tatum Partner was eligible
with respect to the then current bonus year.
Term & Termination
This agreement will be for a term of six
months starting April 25, 2005 and ending October 25, 2005. Should
the Company utilize The Tatum Partner for less than six months, the rate of
$30,000 ($24,000 for the Tatum Partner and $6,000 for Tatum) will be applied
for the time used on a proportional basis.
The Company shall have the right to terminate
this engagement and/or the Tatum Partner’s employment with the Company at
anytime, and for any reason, upon two weeks written notice to Tatum and/or the
Tatum Partner.
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
2
defined by the applicable policy of
disability insurance or, in the absence of such insurance, by Tatum’s
management acting in good faith.
In the event that either party commits a
breach of this agreement, other than for reasons described in the above
paragraph, and fails to cure the same within seven (7) days following
delivery by the non-breaching party of written notice specifying the nature of
the breach, the non-breaching party will have the right to terminate this
agreement immediately effective upon written notice of such termination.
Insurance
The Company will provide Tatum or the Tatum
Partner with written evidence that the Company maintains directors’ and
officers’ insurance at no additional cost to the Tatum Partner, and the
Company will maintain such insurance at all times while this agreement remains
in effect.
Disclaimers, Limitations of Liability
& Indemnity
Tatum assumes no responsibility or liability under this agreement other than to render the services called for hereunder and will not be responsible for any action taken by the Company in following or declining to follow any of Tatum’s advice or recommendations. Tatum represents to the Company that Tatum has conducted reasonable screening and background checks and investigation procedures consistent with those procedures used by US public companies for similar positions with respect to the Tatum Partner becoming a partner in Tatum, and the results of the same uncovered no possible concerns. Tatum disclaims all other warranties, either express or implied. Without limiting the foregoing, Tatum makes no representation or warranty as to the accuracy or reliability of reports, projections, forecasts, or any other information derived from use of Tatum’s resources, and Tatum will not be liable for any claims of reliance on such reports, projections, forecasts, or information. Tatum will not be liable for any non-compliance of reports, projections, forecasts, or information or services with federal, state, or local laws or regulations. Such reports, projections, forecasts, or information or services are for the sole benefit of the Company and not any unn






