Document:

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (“Agreement”) is made and entered into as of July 1, 2001, by and
between CIBER, Inc., a Delaware corporation (together with its affiliates, the
“Company”) and William R. Wheeler (“Officer”).

 

Recital

 

Company desires to
employ Officer in the position set forth on Exhibit A, and Officer is
willing to accept such employment by Company, on the terms and subject to the
conditions set forth in this Agreement.

 

Agreement

 

THE PARTIES AGREE
AS FOLLOWS:

 

1.             Duties.  Officer
agrees to be employed by and to serve the Company in the position set forth on Exhibit A,
and the Company agrees to employ and retain Officer in such capacity, subject
to the terms of this Agreement.  Officer
shall devote all of his business time, energy and skill to the affairs of the
Company, subject to the direction of executive officers of the Company. Officer
shall have powers and duties commensurate with his position set forth on Exhibit A.  Officer shall comply with the general
management policies of the Company as announced from time to time and made
available to Officer in writing. 
Officer’s principal place of business with respect to his services to
the Company shall be within twenty-five (25) miles of the central business
district of Seattle, Washington. 
Officer shall be required at various times to travel as part of his
duties.

2.             Term of Employment.   The initial term of employment of Officer by the Company shall
be from the date of this Agreement through December 31, 2001, unless terminated
earlier pursuant to this Agreement. 
This Agreement shall renew automatically for a period of one year on
January 1, 2002 and on each subsequent anniversary date thereof, subject to the
termination provisions hereof.

3.             Salary, Benefits and Bonus Compensation.

3.1           Base
Salary.  Commencing on the date of
this Agreement, the Company agrees to pay to Officer a “Base Salary’ at the
annualized rate as described on Exhibit A, payable in twenty-six
(26) equal biweekly installments in accordance with the Company’s regular
payroll practice. The Base Salary for each fiscal year (currently January 1
through December 31 of each year) or portion thereof after fiscal year 2001
shall be as determined in the sole discretion of the Board of Directors, but
shall not be less than $240,000 per annum. In the absence of and until any
salary determination by the Board, Officer’s Base Salary for a particular
fiscal year shall be identical to Officer’s Base Salary in effect on December
31st of the immediately preceding fiscal year.

 

1

 

3.2           Bonuses.  Officer will be eligible to receive a bonus
for the fiscal year ending December 31, 2001 provided Officer remains an
employee through such date.  Such bonus
shall be determined as described on Exhibit A hereto and paid
within Seventy-five (75) days after the fiscal year end to which such bonus
relates. The bonus for each fiscal year or portion thereof after fiscal year
2001 shall be determined in the sole discretion of the board of directors.

 

3.3           Additional
Benefits. During the term of his employment, Officer shall be entitled to
the following fringe benefits:

 

3.3.1        Officer
Benefits.  Officer shall be eligible
to participate in such of the Company’s benefit and compensation plans as may
be generally available to employees of the Company.  All such benefit plans may be amended or discontinued in the sole
discretion of the Company.

 

3.3.2        Business
Expenses.  The Company shall
reimburse Officer for all reasonable and necessary expenses incurred in
carrying out his duties under this Agreement, including travel and
entertainment expenses, in accordance with the Company’s policies in effect
from time to time.  Officer shall
present promptly to the Company an itemized account of such expenses in such
form as may be required by the Company of its senior officers.

 

3.3.3        Vacation.  Officer shall be entitled to vacation time
pursuant to the Company’s policy, during which time Officer’s compensation
shall be paid in full.  In addition,
Officer shall be entitled to paid holidays and personal days off in accordance
with the Company’s policies in effect from time to time.

3.4           Option
to Acquire Common Stock. Officer will be entitled to non-statutory stock
option (“Option”) grants to purchase shares of the Company’s Common Stock, such
grants to occur at the time the Company determines, in the best interest of the
Company, to grant Options, pursuant to and subject to the terms and conditions
of Company’s Equity Incentive Plan. The exercise price of Officer’s Options
will be determined upon the date the Company grants the Options. Officer’s
Options, when granted by the Company, will vest over that period of time set
forth in the Company’s Equity Incentive Plan. 
Any Options shall be granted at the sole discretion of the Company’s
Board of Directors. Officer agrees to execute a Non-Statutory Stock Option
Agreement (“Stock Option Agreement”) upon the date the Company grants the
Options to Officer, the terms and conditions of which shall be in conformity
with this Section 3.4.

4.             Termination of Employment.

4.1           Termination for Cause.  Termination for Cause (as defined below) of
Officer’s employment may be effected by the Company at any time without
liability except as specifically set forth in this Subsection.  The termination shall be effected by verbal
or written notification to Officer and shall be effective as of the time stated
in such notice.  At the effective time
of a Termination for Cause, Officer immediately shall be paid all accrued Base
Salary and any reasonable and necessary business expenses incurred by Officer
in connection with his duties hereunder, all to the effective time of
termination.  In addition, Officer shall
be entitled to benefits under any benefit plans of the Company in which Officer
is a participant to the full extent of Officer’s rights under such plans.

 

2

 

4.2           Termination Other Than for Cause.  The Company may effect a Termination Other
Than for Cause (as defined below) of Officer’s employment at any time upon
giving verbal or written notice to Officer of such termination and without
liability except as specifically set forth in this Subsection.  The termination shall be effective as of the
time stated in such notice which shall not precede the date of the notice. At
the effective time of any Termination Other Than for Cause, Officer shall
immediately be paid all accrued Base Salary and any reasonable and necessary
business expenses incurred by Officer in connection with his duties hereunder,
all to the effective time of termination. Officer shall also be entitled to be
paid any unpaid bonus compensation and such unpaid bonus compensation shall be
paid promptly once it has been determined, but no later than sixty (60) days
after the first quarter end following termination.  Unpaid bonus compensation for the purposes of this Section 4
shall be determined as set forth in Exhibit A. In addition, Officer
shall immediately be paid the percentage of his Base Salary set forth on Exhibit
A.  Officer shall also be entitled
to benefits under any benefit plans of Company in which Officer is a
participant to the full extent of Officer’s rights under such plans, and
Company shall pay Officer’s medical, life and disability insurance premiums
under Company’s plans (or shall pay Officer a sum in cash, not to exceed
$1,000.00 per month, to pay private plan premiums for coverage substantially
the same as Company’s) for the number of months following termination set forth
on Exhibit A.

 

4.3           Termination for Good Reason.
Upon a Termination for Good Reason (as defined below) of Officer’s employment,
which termination shall be effective as of the time stated in the termination
notice, Officer shall immediately be paid all accrued Base Salary and any
reasonable and necessary business expenses incurred by Officer in connection
with his duties hereunder, all to the effective time of termination. Officer
shall also be entitled to be paid any unpaid bonus compensation and such unpaid
bonus compensation shall be paid promptly once it has been determined, but no
later than sixty (60) days after the first quarter end following
termination.  Unpaid bonus compensation
for the purposes of this Section 4 shall be determined as set forth in Exhibit
A. In addition, Officer shall immediately be paid the percentage of his
Base Salary set forth on Exhibit A. 
Officer shall also be entitled to benefits under any benefit plans of
Company in which Officer is a participant to the full extent of Officer’s
rights under such plans, and Company shall pay Officer’s medical, life and
disability insurance premiums under Company’s plans (or shall pay Officer a sum
in cash, not to exceed $1,000.00 per month, to pay private plan premiums for
coverage substantially the same as Company’s) for the number of months
following termination set forth on Exhibit A.

 

4.4           Termination by Reason of
Disability.  If Officer, in the
reasonable judgment of the executive officers of the Company, has failed to
perform his duties under this Agreement on account of illness or physical or
mental incapacity, and such illness or incapacity continues for a period of
more than six (6) months, then the question of whether Officer’s illness or
incapacity is reasonably likely to continue shall be submitted to the Company
or, if disability insurance is maintained on Officer, Officer’s disability
insurance carrier for determination.  In
the event the Company or such insurance carrier determines that Officer is
subject to such an illness or incapacity for which no reasonable accommodation
is possible, the Company shall have the right to terminate Officer’s employment
(“Termination for Disability”) by written notification to Officer and payment
to Officer of all accrued Base Salary, unpaid bonus compensation (pro rated as
provided in Exhibit A)

 

3

 

and any reasonable and
necessary business expenses incurred by Officer in connection with his duties
hereunder, all to the date of termination. In addition, Officer shall be
immediately be paid the percentage of his Base Salary set forth in Exhibit A.
Officer shall also be entitled to benefits under any benefit plans in which
Officer is a participant, including disability benefits which may be provided
pursuant to Section 3.3.1, to the full extent of Officer’s rights under such
plans, and Company shall pay Officer’s medical, life and disability insurance
premiums under Company’s plans (or shall pay Officer a sum in cash, not to
exceed $1,000.00 per month, to pay private plan premiums for coverage
substantially the same as Company’s) for the number of months following
termination set forth on Exhibit A.

 

4.5           Death.  In the event of Officer’s death during the
term of employment, Officer’s employment shall be deemed to have terminated as
of the last day of the month during which his death occurs, and the Company
shall pay promptly to his estate (a) all accrued Base Salary, unpaid bonus
compensation (pro rated as provided in Exhibit A) and any reasonable and
necessary business expenses incurred by Officer in connection with his duties
hereunder, all to the effective date of termination and (b) the percentage of
Base Salary set forth on Exhibit A. 
Officer’s estate shall also be entitled to benefits under any benefit
plans of the Company in which Officer was a participant to the full extent of
Officer’s rights under such plans.

 

4.6           Voluntary Termination.  In the event of a Voluntary Termination (as
defined below) by Officer, the Company shall immediately pay all accrued Base
Salary and any reasonable and necessary business expenses incurred by Officer
in connection with his duties hereunder, all to the date of termination.

 

4.7           Termination upon a Change of
Control.  In the event of a
Termination upon a Change of Control (as defined below), Officer shall
immediately be paid all accrued Base Salary, unpaid bonus compensation (as set
forth in Exhibit A) and any reasonable and necessary business expenses
incurred by Officer in connection with his duties hereunder, all to the date of
termination. In addition, Officer shall immediately be paid the amount set
forth on Exhibit A. Also, any Options granted to Officer by the Company
shall vest and become immediately exercisable by Officer in accordance with
Section 3.4 and the Stock Option Agreement. Officer shall also be entitled to
benefits under any benefit plans of Company in which Officer is a participant
to the full extent of Officer’s rights under such plans, and Company shall pay
Officer’s medical, life and disability insurance premiums under Company’s plans
(or shall pay Officer a sum in cash, not to exceed $1,000.00 per month, to pay
private plan premiums for coverage substantially the same as Company’s) for the
number of months following termination set forth on Exhibit A.  Notwithstanding the foregoing, solely in the
event of a Termination upon Change of Control, the aggregate amount of
severance compensation paid to an Officer under this Agreement or otherwise
shall not include any amount that the Company is prohibited from deducting for
federal income tax purposes by virtue of Section 280G of the Internal Revenue
Code or any successor provision.

 

4.8           Other Benefits. Nothing in
this Article 4 shall be deemed to limit or restrict any right or benefit of
Officer under Company’s Certificate of Incorporation, Bylaws or other documents
or agreements of the Company applicable to Officer.

 

4

 

5.             Protection of the Company’s
Business

 

5.1           No Competition.  Officer shall not, during the term of his
employment and for twelve (12) months following the termination of his
employment, work as an employee, director, or independent contractor or become
an investor or lender of any business, corporation, partnership or other entity
engaged in a Competing Business.  An investment
by Officer of up to 2% of the outstanding equity in a publicly-traded
corporation shall not constitute a violation of this Section 5.1.  A “Competing Business” is a business which
Company has engaged in, or has actively investigated engaging in, at any time
during the twenty-four (24) months prior to the termination of Officer’s
employment in which Officer had responsibility to manage, direct or supervise.

 

5.2           No Solicitation of Clients.  Officer shall not, during the term of his
employment and for eighteen (18) months following the termination of his
employment (unless Company grants him written authorization):  (a) call upon, cause to be called upon,
solicit or assist in the solicitation of, any client or potential client of
Company for the purpose of selling, renting or supplying any product or service
competitive with the products or services of Company;  (b) provide any product or services to any client or
potential client of Company which is competitive with the products or services
of Company; or (c) request, recommend or advise any client or potential client
to cease or curtail doing business with the Company.  Any individual, governmental authority, corporation, partnership
or other entity to whom Company has provided services or products at any time
prior to or during Officer’s employment or to whom Company has made one or more
sales or sales calls during the eighteen (18) month period preceding the date
of termination of Officer’s employment shall be deemed a client or potential
client.

 

5.3           No Hire of Other Officers or
Contractors.  Except on behalf of
the Company, Officer shall not, during the term of his employment and for a
period of eighteen (18) months following the termination of his
employment: (a) employ, engage or seek to employ or engage any individual or
entity, on behalf of Officer or any entity (including a client of Company), who
is employed or engaged by Company or who was employed or engaged by the Company
during the six (6) month period preceding Officer’s termination; (b) solicit,
recommend or advise any employee of the Company or independent contractor to
terminate their employment or engagement with the Company for any reason; or
(c) solicit recruiting prospects and/or candidates whose files are actively
maintained or have been maintained during the last six (6) months prior to
Officer’s termination by the Company.

 

6.             Confidentiality.

 

6.1           Confidential
Information and Materials.  All of
the Confidential Information and Materials, as defined herein, are and shall
continue to be the exclusive confidential property and trade secrets of
Company.  Confidential Information and
Materials have been or will be disclosed to Officer solely by virtue of his
employment with Company and solely for the purpose of assisting him in performing
his duties for Company. “Confidential Information and Materials” refers to all
information belonging to or used by Company or Company’s clients relating to
internal operations, procedures and policies, finances, income, profits,
business strategies, pricing, billing information, compensation and other
personnel information, client contacts, sales lists, employee lists,
technology, software source codes, programs, costs, marketing plans,
developmental plans, computer

 

5

 

programs, computer systems, inventions, developments, personnel
manuals, computer program manuals, programs and system designs, and trade
secrets of every kind and character, whether or not they constitute a trade
secret under applicable law and whether developed by Officer during or after
business hours.  Confidential
Information does not include information that: (a) is or becomes generally
available to the public other than, directly or indirectly, as a result of a
disclosure by Officer; (b) was in the Officer’s possession (other than by or on
behalf of the Company) on a nonconfidential basis prior to its disclosure by
Company; or (c) becomes available to Officer on a non–confidential basis
from a person who to the best of knowledge of Officer is not otherwise
prohibited from transmitting the information to Officer.

 

Officer acknowledges and
agrees all Confidential Information and Materials shall, to the extent
possible, be considered works made for hire for the Company under applicable
copyright law.  To the extent any
Confidential Information and Materials are not deemed to be a work made for
hire, Officer hereby assigns to the Company any rights he may have or may
acquire in such Confidential Information and Materials as they are created, throughout
the world, in perpetuity.  Further,
Officer hereby waives any and all moral rights he may have in such Confidential
Information and Materials. 
Notwithstanding the foregoing, the Company acknowledges that it shall
have no right to inventions or other material for which no equipment, supplies,
facilities or Confidential Information and Material of the Company are used and
which are developed entirely on Officer’s own time and (i) do not relate
directly to the business of the Company or (ii) do not result from any
work performed by Officer hereunder.

 

6.2           Non-disclosure and Non-use.  Officer may use Confidential Information and
Material while an employee of Company and in the course of that employment to
the extent deemed necessary by Company for the performance of Officer’s
responsibilities.  Such permission
expires upon termination of his employment with Company or on notice from
Company.  Officer shall not, either during
or after his employment with Company, disclose any Confidential Information or
Materials to any person, firm, corporation, association or other entity for any
reason or purpose unless expressly permitted by Company in writing.  Officer shall not use, in any manner other
than to further Company’s business, any Confidential Information or Materials
of Company.  Upon termination of his
employment, Officer shall immediately return all Confidential Information or
Materials or other property of Company or its clients or potential clients in
his possession or control..

 

7.             Definitions.

 

7.1           Definitions.  For purposes of this Agreement, the
following terms shall have the following meanings:

 

7.1.1.                       “Termination for Cause”
shall mean termination by Company of Officer’s employment by Company by reason
of Officer’s conviction of any felony crime, Officer’s willful dishonesty
towards, fraud upon or deliberate injury or attempted injury to Company or its
clients, Officer’s material breach of this Agreement, or any material reason
that constitutes cause under applicable law.

 

6

 

7.1.2                        “Termination Other Than
for Cause” shall mean termination by Company of Officer’s employment for any or
no reason, other than a Termination for Cause, Termination upon Change in
Control, Termination for Good Reason, or Termination for Death or Disability.

 

7.1.3                        “Termination upon a
Change in Control” shall mean a termination by Company or any successor thereto
or by Officer of Officer’s employment with the Company or such successor for
any reason within one hundred eighty (180) days from the date on which any of
the following occurs:  (a) any
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
the Securities Exchange Act of 1934 (the “1934 Act”)), other than CIBER, Inc.,
Bobby G. Stevenson or a trustee or other fiduciary holding securities
under an employee benefit plan of Company, is or becomes the “beneficial owner”
(as defined in Rule 13d–3 under the 1934 Act), directly or
indirectly, of more than thirty three percent (33%) of the then outstanding
voting stock of Company; or (b) at any time during any period of three
consecutive years (not including any period prior to the Effective Date),
individuals who at the beginning of such period constitute the Board (and any
new director whose election by the Board or whose nomination for election by
Company’s stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority thereof; or
(c) the stockholders of Company approve a merger or consolidation of
Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least 80% of the
combined voting power of the voting securities of Company or such surviving
entity outstanding immediately after such merger or consolidation, or the
stockholders approve a plan of complete liquidation of Company or an agreement
for the sale or disposition by Company of all or substantially all of Company’s
assets.

 

7.1.4                        For purposes of this
Agreement “Good Reason” shall include, but not be limited to, any of the
following (without the Officer’s express written consent):  (a) the assignment to the Officer by the
Company of duties inconsistent with, or a substantial diminution in the nature
or status of, the Officer’s responsibilities, other than any changes primarily
attributable to the fact that the Company’s securities are no longer publicly
traded; (b) a reduction by the Company in the Officer’s compensation, benefits,
or perquisites as in effect upon the effective date of this Agreement; (c) a
relocation of the Company’s principal offices to a location outside Seattle,
Washington, or the Officer’s relocation to any place other than the Seattle,
Washington offices of the Company, except for reasonably required travel by the
Officer on the Company’s business; (d) any material breach by the Company of
any provision of this Agreement, if such material breach has not been cured
within thirty (30) days following written notice by the Officer to the Company
of such breach setting forth with specificity the nature of the breach; or (e)
any failure by the Company to obtain the assumption and performance of this
Agreement by any successor (by merger, consolidation or otherwise) or assign of
the Company.

 

7

 

7.1.5                        “Voluntary Termination”
shall mean termination by Officer of Officer’s employment with Company, but
shall not include (i) constructive termination by Company by reason of material
breach of this Agreement by Company; (ii) Termination upon a Change in Control;
(iii) Termination for Good Reason; and (iv) termination by reason of Officer’s
death or disability as described in Subsections 4.4 and 4.5.  Voluntary Termination shall include a
termination by Company after its receipt of a notice of an otherwise Voluntary
Termination from Officer.

 

8.               Remedies.

 

8.1           Liquidated Damages.

 

8.1.1                        If Officer violates
Subsection 5.1, Officer shall pay to Company the sum of $100,000.00 as
liquidated damages to compensate Company for its lost investment of money for
recruitment, training, cost of replacement, lost revenues and other damages due
to the likely disruption of the operation of Company’s business.

 

8.1.2                        If Officer violates
Subsection 5.2, Officer shall pay to Company as liquidated damages the greater
of Company’s gross billings to the client to which products or services are
supplied in violation of Subsection 5.2 during the year immediately prior to
the first improper solicitation or $25,000.00, to compensate Company for its
lost revenue, client development expenses and other damages.

 

8.1.3                        If Officer violates
Subsection 5.3, Officer shall pay to Company as liquidated damages, in
compensation for its recruitment and training costs, lost revenues and other
damages, the following sums for each employee or independent contractor hired
or engaged in violation of Subsection 5.3:

 

	
  Officer
  or Independent Contractor

  	
   

  	
  Amount

  
	
  Vice-President
  or other officer

  	
   

  	
  $

  	
  100,000

  
	
  Other
  Manager or Recruiter

  	
   

  	
  $

  	
  50,000

  
	
  Marketer
  or other sales personnel

  	
   

  	
  $

  	
  50,000

  
	
  Programmers
  or other billable personnel

  	
   

  	
  $

  	
  12,500

  
	
  Other
  office staff

  	
   

  	
  $

  	
  5,000

  

 

8.1.4                        Officer and Company have
carefully considered the issue of liquidated damages and after negotiation
agree that they are a reasonable compromise after attempting to estimate what
the actual damages would be and assessing the risk of collection.

 

8.1.5                        Officer authorizes
Company to disclose the terms of Sections 5, 6 and 8 of this Agreement to any
subsequent employer or client of Officer.

 

8

 

8.2           Equitable Remedies.  The service rendered by Officer to Company
and the information disclosed to Officer during his employment are of a unique and
special character, and any breach of Sections 5 or 6 hereof will cause
Company irreparable injury and damage which will be extremely difficult to
quantify.  Although the parties have
agreed on liquidated damages for some of the potential breaches by Officer,
they agree that because of the risk of collection and intangibles which are
impossible to measure, Company will be entitled to, in addition to all other
remedies available to it, injunctive relief to prevent a breach and to secure
the enforcement of all provisions of Sections 5 and 6.  Officer represents his experience and
knowledge will enable him to earn an adequate living in a non–competitive
business and that the injunctive relief will not prevent him from providing for
him and his family.  Injunctive relief
may be granted immediately upon the commencement of any such action without
notice to Officer, WHICH NOTICE EMPLOYEE SPECIFICALLY WAIVES.

 

8.3           Costs.  If litigation is brought to enforce or
interpret any provision contained herein, the court shall award reasonable
attorneys’ fees and disbursements to the prevailing party as determined by the
court.

 

8.4           Severability.  THE PARTIES HAVE CAREFULLY CONSIDERED ALL OF
SECTIONS 5, 6 AND 8 AND AGREE THAT THEY REPRESENT A PROPER BALANCING OF
THEIR INTERESTS AND WILL NOT PREVENT EMPLOYEE FROM EARNING A LIVING AFTER
TERMINATION OF HIS EMPLOYMENT.  It is
the express intent of the parties hereto that the obligations of, and
restrictions on, the parties as provided in Sections 5 and 6 shall be
enforced and given effect to the fullest extent legally permissible.  If, in any judicial proceeding, a court
shall refuse to enforce one or more of the covenants or agreements contained in
this Agreement because the duration thereof is too long, the scope thereof is
too broad or some other reason, for the purpose of such proceeding, the court
may reduce such duration or scope to the extent necessary to permit the
enforcement of such obligations and restrictions.

 

9.             Miscellaneous.

 

9.1           Payment
Obligations.  Company’s obligation
to pay Officer the compensation provided herein is subject to the condition
precedent that Officer perform his obligations.

 

9.2           Waiver.  The waiver of the breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent
breach of the same or other provision hereof.

 

9.3           Entire
Agreement; Modifications.  This
Agreement represents the entire understanding between the parties with respect
to the subject matter hereof, and this Agreement supersedes any and all prior
understandings, agreements, plans and negotiations, whether written or oral,
with respect to the subject matter hereof, including, without limitation, any
understandings, agreements or obligations respecting employment,
noncompetition, nonsolicitation, any past or future compensation, bonuses,
reimbursements or other payments to Officer from Company.  All modifications to this Agreement must be
in writing and signed by the party against whom enforcement of such modification
is sought; provided; however, that the provisions concerning Position, Base
Salary (subject to the limitation in Section 3.1) and Bonus set forth on
Exhibit A may be modified at any time by the Board of Directors in its sole
discretion.

 

9

 

9.4           Notices.  All notices and other communications under
this Agreement shall be in writing and shall be given by hand delivery, or
first-class mail, certified or registered with return receipt requested, or by
commercial overnight courier or by fax and shall be deemed to have been duly
given upon hand delivery, three (3) days after mailing, the first business day
following delivery to a commercial overnight courier or upon receipt of a fax
(as confirmed by a machine generated report), addressed as follows:

 

If to Company:

 

CIBER, Inc.

5351 DTC Parkway, 
Suite 1400

Greenwood Village, Colorado  80111

Attn: Mac J.
Slingerlend

 

If to Officer:

William R. Wheeler

15215 NE 167th Place

Woodinville, WA 98072

 

Any party may
change such party’s address for notices by notice given pursuant to this
Section 9.4.

 

9.5           Headings.  The Section headings herein are intended for
reference and shall not by themselves determine the construction or
interpretation of this Agreement.

 

9.6           Arbitration.
Any controversy or claim arising out of or relating to this contract, or the
breach thereof, shall be settled by arbitration administered by the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes, and judgment upon the award rendered by the arbitrator(s)
may be entered by any court having jurisdiction thereof.

 

9.7           Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Colorado without application of its conflict of laws
rules.

 

9.8           Severability.  Should a court or other body of competent
jurisdiction determine that any provision of this Agreement is excessive in
scope or otherwise invalid or unenforceable, such provision shall be adjusted
rather than voided, if possible, so that it is enforceable to the maximum
extent possible, and all other provisions of the Agreement shall be deemed
valid and enforceable to the extent possible.

 

9.9           Survival
of Company’s Obligations.  Company’s
obligations hereunder shall not be terminated by reason of any liquidation,
dissolution, bankruptcy, cessation of business or similar event relating to
Company.  This Agreement shall not be
terminated by any merger or consolidation or other reorganization of Company.  In the event any such merger, consolidation
or

 

10

 

reorganization shall be accomplished by transfer of stock or by
transfer of assets or otherwise, the provisions of this Agreement shall be
binding upon and inure to the benefit of the surviving or resulting corporation
or person.  This Agreement shall be
binding upon and inure to the benefit of the executors, administrators, heirs,
successors and assigns of the parties; provided, however, that except as provided
in this Subsection in the event of a merger consolidation or reorganization of
the Company, including the sale of substantially all of its assets, this
Agreement shall not be assignable either by Company or by Officer.

 

9.10         Counterparts.  This Agreement may be executed in one or
more counterparts, all of which taken together shall constitute one and the
same Agreement.

 

9.11         Withholdings.  All compensation and benefits to Officer
hereunder shall be reduced by all federal, state, local and other withholdings
and similar taxes and payments required by applicable law.  Company may withhold amounts due it from
Officer from amounts due under this Agreement to Officer.

 

IN WITNESS
WHEREOF, the parties hereto have executed this Employment Agreement as of the
date first above written.

 

 

	
  EMPLOYEE 

  	
   

  	
  CIBER, INC., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  William R. Wheeler

  	
   

  	
  Mac J.
  Slingerlend,

  
	
   

  	
   

  	
  President, Chief
  Executive Officer

  

 

11

 

EXHIBIT A

To

Employment
Agreement of William R. Wheeler dated July 1, 2001

 

	
  I.

  	
   

  	
  *Position: 
  Senior Vice President, CIBER Enterprise Solutions

  
	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  *Base Salary Per Annum beginning July 1, 2001:  $250,000.00

  
	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  *Bonus Potential for period July 1, 2001 to December
  31, 2001:  $50,000.00

  
	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Option Grant: 
  N/A

  
	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Additional sums payable upon termination events as
  referenced in Section 4 of the Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
   

  	
  Termination for Cause:  None

  	 

	
   

  	
   

  	
  B.

  	
   

  	
  Termination Other than for Cause: 100% of Base
  Salary plus the pro rata portion of the bonus compensation received by the
  Officer for the year preceding the year in which termination occurs.
  Additionally, the eighteen (18) month non-compete period in Section 5.1 shall
  be reduced to twelve (12) months.

  	 

	
   

  	
   

  	
  C.

  	
   

  	
  Termination for Good Reason: 100% of Base Salary
  plus the pro rata portion of the bonus compensation received by the Officer
  for the year preceding the year in which termination occurs.

  	 

	
   

  	
   

  	
  D.

  	
   

  	
  Termination by Reason of Disability: 50% of Base
  Salary plus pro rata portion of the bonus compensation received by the
  Officer for the year preceding the year in which termination occurs.

  	 

	
   

  	
   

  	
  E.

  	
   

  	
  Death: 50% of Base Salary plus pro rata portion of
  the bonus compensation received by the Officer for the year preceding the
  year in which termination occurs.

  	 

	
   

  	
   

  	
  F.

  	
   

  	
  Voluntary Termination:  None

  	 

	
   

  	
   

  	
  G.

  	
   

  	
  Termination Upon a Change of Control: 1.5 times the
  sum of the following: Base Salary plus an amount equal to the bonus
  compensation received by the Officer for the year preceding the year in which
  termination occurs.

  	 

 

*              Items subject to modification by the Board

 

12CIBER, INC.

SALARY CONTINUATION RETIREMENT PLAN FOR

MAC J. SLINGERLEND

Second Revision - February, 2002

 

THIS PLAN is adopted by CIBER, Inc., a Delaware corporation (the
“Company”) , as of the Effective Date, for the purpose of providing certain
salary continuation retirement benefits to MAC J. SLINGERLEND (the
“Participant”).

 

1.             Definitions.  The following definitions apply to terms used in this Plan:

 

1.1           “Annual Benefit
Amount” means an amount based on the Participant’s attained age
when the Participant’s employment with the Company terminates:

 

	
  Participant’s
  Age at Termination of Employment

  	
   

  	
  Benefit Amount

  
	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  $

  	
  75,000

  
	
  55

  	
   

  	
  $

  	
  85,000

  
	
  56

  	
   

  	
  $

  	
  95,000

  
	
  57

  	
   

  	
  $

  	
  102,500

  
	
  58

  	
   

  	
  $

  	
  110,000

  
	
  59

  	
   

  	
  $

  	
  117,500

  
	
  60 or older

  	
   

  	
  $

  	
  125,000

  

 

1.2           “Beneficiary”
means the beneficiary determined under section 4 to receive any benefits under
the Plan that become payable after the death of the Participant.

 

1.3           “Benefit Commencement
Date” means the date on which the Participant attains the age of
60 years.

 

1.4           “Company”
means CIBER, INC., a Delaware corporation.

 

1.5           “Effective Date”
means the date of adoption of this Plan by the Company, which is indicated at
the end of the Plan document.

 

1.6           “Participant”
means MAC J. SLINGERLEND.

 

 

1.7           “Plan”
means this CIBER, INC. Salary Continuation Retirement Plan for Mac J.
Slingerlend, as set forth in herein and as may hereafter be amended from time
to time.

 

1.8           “Spouse”
means with respect to the Participant, the person to whom the Participant is
legally married, or to whom he was legally married at the time of his
death.  The term “spouse” specifically
excludes a former spouse if the marriage was terminated by divorce, annulment,
or dissolution, rather than by the death of one of the parties.

 

2.             Purposes.  The Participant is a valued employee of the Company.  The Company recognizes that the Participant
has performed his services with ability and distinction, and that the growth
and success of the Company’s business reflects and will reflect the services
rendered by the Participant.  To reward
and retain the services of the Participant, and to assist the Participant in
providing for the contingencies of retirement, the Company adopts this Plan to
provide certain salary continuation retirement benefits to the Participant or
the Participant’s Beneficiary.  The
Company and the Participant intend that: (a) this Plan is unfounded for tax
purposes and for purposes of Title I of the Employee Retirement Income Security
Act of 1974; (b) this Plan is maintained by the Company primarily for the purpose
of providing deferred compensation for the Participant; and (c) the Participant
is one of a select group of management or highly compensated employees of the
Company.

 

3.             Salary Continuation Benefits

 

3.1         Amount
and Payment of Benefits. 
Except as provided in section 3.2, the Company shall pay salary
continuation benefits as provided in this Plan.  The salary continuation benefits under this Plan shall consist of
fifteen annual payments of the Participant’s Annual Benefit Amount, payable on
the Benefit Commencement Date and each year thereafter on the anniversary of
the Benefit Commencement Date until a total of fifteen annual payments has been
made.   The Company may, at its sole
option and at any time after the employee’s employment

 

2

 

has been terminated or at any time after the
Benefit Commencement Date (regardless of whether the Employee’s employment has
been terminated), prepay the benefits under this Plan by paying a lump sum, in
cash, equal to the present value of all remaining unpaid payments, calculated
using a discount rate of 8% per annum. 
Upon such prepayment, the Company shall have no further obligations
under this Plan.

 

3.2        Forfeiture
of Benefits on Termination for Cause.  If the Participant’s employment with the Company is terminated
for cause, either before or after the Benefit Commencement Date, then any
benefits not actually paid prior to the time of termination shall be forfeited,
and no further salary continuation benefits shall be payable under this
Plan.  For this purpose, “cause” means
(a) commission of a felony, or (b) fraud or misappropriation or intentional
material damage to the property or business of the Company, provided that such
“cause” shall have been found by a majority vote of the members of the Board of
Directors of the Company (other than the Participant, if he is a member of the
Board of Directors).

 

3.3         Recipient.  The salary continuation benefits under his
Plan shall be paid as follows:

 

a.              All payments that become payable
during the Participant’s lifetime shall be paid to the Participant.

 

b.             Any payments that become payable
following the Participant’s death shall be paid to the Participant’s
Beneficiary.

 

4.             Beneficiary.

 

4.1           Designation.  The Participant may from time to time
designate a Beneficiary to receive amounts that may become payable under this
plan following the Participant’s death. 
If more than one Beneficiary is named, the shares and/or precedence of
each shall be indicated.  The
Participant may at any time revoke or change any previous beneficiary
designation.  Any

 

3

 

beneficiary designation or any revocation or
change of a previous beneficiary designation shall be in writing, shall be
signed by the Participant, shall be effective only upon its actual receipt by
the Company, and shall be in the form of Exhibit A attached hereto.

 

4.2           No Designated
beneficiary.  If there is
no beneficiary designation in effect for the Participant at the time when any
amounts become payable to the participant’s Beneficiary, or if the Beneficiary
designated by the Participant is not then living or in existence, then the
Participant’s Beneficiary shall be, and the payment(s) shall be made to:

 

a.             The Participant’s
surviving Spouse, if any;

 

b.             The Participant has no surviving Spouse, then to the
Participant’s personal representative, to be distributed as a part of the
Participant’s estate.

 

4.3           Withholding Benefits.  If the Company is in doubt as to the proper
Beneficiary to receive any payment under this plan, the Company may withhold
payment until the matter is finally adjudicated.

 

4.4           Incompetent Payee.  If the Participant or any Beneficiary is a
minor or otherwise legally incompetent, the Company may make payment to the Participant’s
or Beneficiary’s conservator or legal guardian or, in the sole and absolute
discretion of the Company, to the Participant’s or Beneficiary’s parent or
another relative of the Beneficiary. 
The receipt of a conservator, guardian, parent or other relative to whom
a payment is made under this section shall be a complete discharge of the
Company, and the Company shall have obligation to see to the application of any
payment so made.

 

4.5           Discharge of Company.  Any payment made by the Company in good
faith and in accordance with the provisions of this Plan shall fully discharge
the Company from all further obligations with respect to that payment.

 

4

 

5.             Relationship to Other Agreements.  This Plan does not constitute a contract of
employment between the Company and the Participant.  No provision of this Plan shall restrict the right of the Company
to discharge or terminate the Employment of the Participant, nor the right of
the Participant to terminate the Participant’s employment with the Company.

 

6.             Unfunded Plan.

 

6.1           Company’s Obligations.  The Company’s obligations under this Plan
shall be an unfounded and unsecured promise to make benefit payments in the
future.  The Company shall not, under
any circumstances, be obligated to fund its financial obligations under this
Plan.

 

6.2           Rights of
Participants and Beneficiaries. 
In seeking to enforce payment of benefits under this Plan, the
Participant or the Participant’s Beneficiary shall have the status and rights,
but only the status and rights, of general unsecured creditors of the Company.

 

6.3           No Rights in Specific
Assets.  No assets held,
or acquired in the future, by the Company, shall be considered to be held or
acquired in connection with or as security for the liabilities of the Company
pursuant to this Plan, and shall not be deemed to be held under any trust for
the benefit of the Participants or their Beneficiaries, or be deemed security
for the performance of the obligations of the Company under this plan, but
shall be and remain general, unpledged and unrestricted assets of the
Company.  The Participant hereby
acknowledges that the Participant’s participation in the acquisition of any
general asset for the Company shall not constitute a representation to the
Participant, the Participant’s Beneficiary, or any other person claiming
through the Participant, that any of them has any special or beneficial
interest in any general asset of the Company.

 

7.             Inalienability.  Except as specifically provided in this Plan
with respect to the Participant’s right to designate a Beneficiary, the
Participant’s right to benefits hereunder is personal to the Participant, and
neither the Participant nor the Participant’s Beneficiary shall

 

5

 

have any right to anticipate, sell, assign,
mortgage, pledge, or otherwise dispose of or encumber any of the benefits
provided for under this Plan, nor shall such benefits be liable for the debts
or obligations of the Participant or the Participant’s Beneficiary, or be
subject to attachment, garnishment, execution, creditors bill, or other legal
or equitable process.

 

8.             Claims Procedure.  The following provisions are part of the
Plan and are intended to meet the requirements of the Employee Retirement
Income Security Act of 1974:

 

8.1           Named
Fiduciary.  The “named
Fiduciary” is the Company.

 

8.2           Unfunded
Plan.  This Plan is
unfunded.

 

8.3           Basis of Payment of
Benefits.  The basis of
payment of benefits under this Plan is that the Company shall pay the benefits
out of its general assets, in accordance with the terms of this plan.

 

8.4           Claims Procedure.

 

a.             Claim.  A person who believes that he or she is
being denied a claim for benefits to which he or she is entitled under this
Plan (a “Claimant”) may file a written request for such benefits to with the
Company, setting forth the claim.  The
request must be addressed to the President of the Company at the Company’s then
principal place of business.

 

b.             Decision on a Claim.  If a claim is denied, the President shall
deliver a written explanation to the Claimant, setting forth: (a) the specific
reason or reasons for the denial; (b) references to the pertinent provisions of
this Plan on which the denial is based; (c) a description of any additional
material or information necessary for the Claimant to perfect the claim and an
explanation of why that material or information is necessary; (d) appropriate
information as to the steps to be taken if the Claimant wishes to submit the
claim for review; and (e) the time limit for requesting a review of the claim
under section 8.4.c.  The written
explanation shall be delivered to the Claimant within 90 days after receipt of
the claim by the Company.

 

6

 

c.             Review of a Denied
Claim.  A Claimant shall
have 60 days following receipt of the denial of a claim to request a review of
the denial.  A request for review shall
be in writing and addressed to the President at the Company’s then principal
place of business.  The Claimant may
submit pertinent documents and written issues and comments.  The President shall review the denial of the
claim, and shall furnish the Claimant with a decision on review within 60 days
after receipt of the Claimant’s request for review.  The decision on review shall be in writing, shall be written in a
manner calculated to be understood by the Claimant, and shall include specific
reasons for the decision and specific references to the pertinent provisions of
this Plan on which the decision is based.

 

9.             Miscellaneous.

 

9.1           Amendment or
Termination.  This Plan
may be amended or terminated only in a written instrument signed by both the
Company and the Participant.

 

9.2           Inurement.  The terms of this Plan shall be binding
upon, and shall inure to the benefit of, the Company, the Participant, the
Participant’s Beneficiary, and their respective heirs, personal
representatives, successors, and permitted assigns.

 

9.3           Governing Law.  This Plan shall be governed by and construed
in accordance with the laws of the State of Colorado.

 

9.4           Exhibit.  The Exhibit attached hereto is incorporated
herein by reference.

 

7

 

IN WITNESS WHEREOF, the
Company has adopted this Plan effective as of the date indicated below.

 

	
   

  	
   

  	
  “Company”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CIBER, Inc., a Delaware
  corporation

  
	
  Effective date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  February 15, 2002

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
   

  
					

 

 

8

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