Document:

Exhibit 10.1

 

AMENDMENT NO. 1 TO

 

EMPLOYMENT AGREEMENT

 

THIS
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (the “Amendment”) is dated as of
June 17, 2010 (the “Effective Date”) by and between Carmine T.
Oliva (the “Executive”) and EMRISE Corporation, a Delaware corporation
(the “Employer”) (taken together, the “Parties”) and amends the
Employment Agreement, dated November 1, 2007 between the Parties (the “Employment
Agreement”).  Capitalized terms used
but not defined herein shall have the meanings ascribed to those terms in the
Employment Agreement.

 

RECITALS

 

WHEREAS,
Executive currently holds the position of Chief Executive Officer.

 

WHEREAS,
Executive and the Employer desire to modify the Change in Control provisions of
the Employment Agreement and provide Executive with consideration for such
modifications.

 

WHEREAS,
the Employer wishes to provide an incentive to Executive to close on the sale
of stock of Advanced Control Components, Inc. and Custom Components, Inc.
(the “ACC Sale”) in order to pay a substantial portion of the debts owed to
Employer’s senior lender and a majority of the debt owed to the Advanced
Control Components, Inc. sellers.

 

NOW,
THEREFORE, in consideration of the premises, mutual agreements and provisions
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be
legally bound, agree as follows:

 

1.                                       Change in Control Benefits.  In lieu of the Change in Control benefits
provided under the Employment Agreement, Executive shall be eligible to receive
the benefits described below, subject to the terms and conditions provided
herein.

 

2.                                       ACC Payment.  Upon the first to occur of (a) the
closing of the ACC Sale and (b) any other Change in Control, Executive
will be entitled to receive a one-time payment equal to $220,000 (the “ACC Sale
Payment”), to be paid as follows.  A lump
sum payment equal to $85,000 shall be paid to Executive within thirty days
following the closing date of the ACC Sale or such other Change in Control, but
in no event later than March 15 of the calendar year immediately following
the calendar year in which such closing occurs. 
Four additional monthly payments of $33,750 each (for a total of
$135,000) shall be paid to Executive beginning on the date that is thirty days
following the closing date of the ACC Sale or such other Change in Control,
provided that all such payments shall be completed not later than March 15
of the calendar year immediately following the calendar year in which such
closing occurs.

 

3.                                       Severance Benefit.  In the event of a termination of the
Employment Agreement as a result of a Constructive Termination or by Executive
for Good Reason, in each case 

 

 

within nine months
following the occurrence of a Change in Control, Executive shall be entitled to
receive, in addition to any payments and benefits to which Executive may be
entitled pursuant to Section 7(c) of the Employment Agreement (as
reduced pursuant to Section 5 hereof), a lump sum payment equal to
$125,000, provided that Executive signs an appropriate separation agreement in
a form acceptable to Employer, which includes a release of all claims against
Employer to the fullest extent permitted by law, such agreement actually enters
into effect following any revocation period required by law, and Executive
complies fully with any continuing obligations under the Employment
Agreement.  Such payment shall be made on
the first business day following the expiration of the revocation period
described in the preceding sentence (provided Executive has not tendered his
revocation), but, in any event, not later than the Short-Term Deferral Date.

 

4.                                       Forfeiture of Change in Control Payment.  Executive hereby forfeits all rights and
claims to any payment that may become payable pursuant to Section 8 of the
Employment Agreement in connection with any Change in Control that occurs on or
after the date of this Amendment, including, but not limited to, the ACC Sale,
and Section 8 of the Employment Agreement is hereby deleted, and all
subsequent section numbers and section references in the Employment Agreement
are adjusted accordingly.

 

5.                                       Severance Payment Offsets.  The aggregate amount of the ACC Sale Payment
that is paid or becomes payable to Executive pursuant to this Amendment, up to
a maximum of $125,000, shall reduce, dollar for dollar, the total amount that
may be payable to Executive pursuant to Section 7(b) or 7(c) of
the Employment Agreement, reduced for (a) amounts payable pursuant to Section 7(c)(i) for
Salary that is accrued as of the date of termination and (b) amounts
payable pursuant to Section 7(b)(i) (such total amount, as reduced,
the “Severance Payment”).

 

6.                                       Continued Medical Benefits Payments.  The aggregate amount of the monthly
installment payments payable to Executive pursuant to Section 7(c)(iv) of
the Employment Agreement in the event that Employer’s medical insurance plan
does not allow Executive’s continued participation shall not exceed two times
the lesser of (a) the Executive’s annual compensation for services
provided to the Employer for the calendar year immediately preceding the
calendar year in which the Executive’s employment terminates and (b) the
maximum amount that may be taken into account under a qualified plan pursuant
to Section 401(a)(17) of the Code for the year in which the Executive’s
employment terminates.

 

7.                                       Tax Withholding.  Any payments provided for herein shall be
reduced by any amounts required to be withheld by the Employer from time to
time under applicable federal, state or local income or employment tax laws or
similar statutes or other provisions of law then in effect.

 

8.                                       Effect of Employment Agreement and Amendment.  Except as amended by this
Amendment, the Employment Agreement shall remain in full force and effect.  If there is 

 

2

 

any conflict between the
terms of the Employment Agreement and the terms of this Amendment, the terms of
this Amendment shall control.

 

9.                                       Entire Agreement.  This Amendment constitutes the entire
agreement and understanding between the Parties with respect to the subject
matter hereof and supersedes all prior and contemporaneous agreements and
understandings relative to such subject matter.

 

10.                                 Counterparts.  This Amendment may be executed in counterparts
and/or by facsimile or pdf, all of which together shall constitute one and the
same document.

 

3

 

IN
WITNESS WHEREOF, this Amendment No. 1 to Employment Agreement has been
executed as of the date and year first above written.

 

 

	
   

  	
  /s/
  Carmine T. Oliva

  
	
   

  	
  Carmine T. Oliva

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMRISE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  D. John Donovan

  
	
   

  	
   

  	
  Name:
  D. John Donovan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  

 

4Exhibit 10.2

 

AMENDMENT NO. 1 TO

 

EMPLOYMENT AGREEMENT

 

THIS
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (the “Amendment”) is dated as of
June 18, 2010 (the “Effective Date”) by and between Graham
Jefferies (the “Executive”) and EMRISE Corporation, a Delaware corporation
(the “Employer”) (taken together, the “Parties”) and amends the
Employment Agreement, dated November 1, 2007 between the Parties (the “Employment
Agreement”).  Capitalized terms used
but not defined herein shall have the meanings ascribed to those terms in the
Employment Agreement.

 

RECITALS

 

WHEREAS,
Executive currently holds the position of President and Chief Operating
Officer.

 

WHEREAS,
Executive and the Employer desire to modify the Change in Control provisions of
the Employment Agreement and provide Executive with consideration for such
modifications.

 

WHEREAS,
the Employer wishes to provide an incentive to Executive to close on the sale
of stock of Advanced Control Components, Inc. and Custom Components, Inc.
(the “ACC Sale”) in order to pay a substantial portion of the debts owed to
Employer’s senior lender and a majority of the debt owed to the Advanced
Control Components, Inc. sellers.

 

NOW,
THEREFORE, in consideration of the premises, mutual agreements and provisions
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be
legally bound, agree as follows:

 

1.                                       Change in Control Benefits.  In lieu of the Change in Control benefits
provided under the Employment Agreement, Executive shall be eligible to receive
the benefits described below, subject to the terms and conditions provided
herein.

 

2.                                       ACC Payment.  Upon the first to occur of (a) the
closing of the ACC Sale and (b) any other Change in Control, Executive
will be entitled to receive a one-time payment equal to $185,000 (the “ACC Sale
Payment”), to be paid as follows.  A lump
sum payment equal to $80,000 shall be paid to Executive within thirty days
following the closing date of the ACC Sale or such other Change in
Control.  Four additional monthly
payments of $26,250 each (for a total of $105,000) shall be paid to Executive
beginning on the date that is thirty days following the closing date of the ACC
Sale or such other Change in Control.

 

3.                                       Retention Payment.  During the period beginning on June 1,
2010 and continuing through May 30, 2011, provided that Executive
continues to be employed by the Employer, Executive shall receive a payment
equal to $4,300 every other week (for a total of

 

 

$111,800), to be paid
bi-weekly or otherwise in accordance with the Employer’s payroll practices.

 

4.                                       Severance Benefit.  In the event of a termination of the
Employment Agreement as a result of a Constructive Termination or by Executive
for Good Reason, in each case within nine months following the occurrence of
Change in Control, Executive shall be entitled to receive, in addition to any
payments and benefits to which Executive may be entitled pursuant to Section 6(c) of
the Employment Agreement, a lump sum payment equal to $100,000, provided that
Executive signs an appropriate separation agreement in a form acceptable to
Employer, which includes a release of all claims against Employer to the
fullest extent permitted by law, such agreement actually enters into effect
following any revocation period required by law, and Executive complies fully
with any continuing obligations under the Employment Agreement.  Such payment shall be made on the first
business day following the expiration of the revocation period described in the
preceding sentence (provided Executive has not tendered his revocation).

 

5.                                       Forfeiture of Change in Control Payment.  Executive hereby forfeits all rights and
claims to any payment that may become payable pursuant to Section 7 of the
Employment Agreement in connection with any Change in Control that occurs on or
after the date of this Amendment, including, but not limited to, the ACC Sale,
and Section 7 of the Employment Agreement is hereby deleted and all
subsequent section numbers and section references in the Employment Agreement
are adjusted accordingly.

 

6.                                       Tax Withholding.  Any payments provided for herein shall be
reduced by any amounts required to be withheld by the Employer from time to
time under applicable federal, state or local income or employment tax laws or
similar statutes or other provisions of law then in effect.

 

7.                                       Effect of Employment Agreement and Amendment.  Except as amended by this
Amendment, the Employment Agreement shall remain in full force and effect.  If there is any conflict between the terms of
the Employment Agreement and the terms of this Amendment, the terms of this
Amendment shall control.

 

8.                                       Entire Agreement.  This Amendment constitutes the entire
agreement and understanding between the Parties with respect to the subject
matter hereof and supersedes all prior and contemporaneous agreements and
understandings relative to such subject matter.

 

9.                                       Counterparts.  This Amendment may be executed in
counterparts and/or by facsimile or pdf, all of which together shall constitute
one and the same document.

 

2

 

IN
WITNESS WHEREOF, this Amendment No. 1 to Employment Agreement has been
executed as of the date and year first above written.

 

 

	
   

  	
  /s/
  Graham Jefferies

  
	
   

  	
  Graham Jefferies

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMRISE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carmine T. Oliva

  
	
   

  	
   

  	
  Name:
  Carmine T. Oliva

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  

 

3

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