Document:

Exhibit 10.1

 

Mr. Marvin Hoffman

128 Ketch Mall

Marina del Rey, CA  90292

	
             
 	
            Re:
 	
            New Employment Agreement Commencing May 1, 2006
 

Dear Marv:

This letter agreement will define the terms and conditions of your employment with NTS Technical Systems, a California corporation (hereinafter referred to as the “Company”) commencing on May 1, 2006. This agreement is entered into with reference to the following facts.

	
             
 	
            A.
 	
            You are currently employed as Chief Information Officer (“CIO”) pursuant to a letter agreement with National Technical Systems, Inc. (“NTS Inc.) dated September 24, 2001 (the “2001 Agreement”), which agreement superseded and replaced all prior agreements between the parties. You also serve as Vice-Chairman of the Board of Directors of NTS Inc., and as a member of the Senior Management Committee and the Senior Marketing Committee of the Company.
 

	
             
 	
            B.
 	
            Pursuant to the terms of the 2001 Agreement, National Technical Systems, Inc. exercised its option to purchase your National Technical Systems, Inc. shares on March 28, 2006. The sale of said stock was consummated on March 28, 2006.
 

	
             
 	
            C.
 	
            Pursuant to this new agreement (the “New Agreement”), and the consideration herein stated, (1) you and National Technical Systems, Inc. have mutually agreed to terminate the 2001 Agreement, and (2) you and the Company have agreed to continue your employment with the Company pursuant to this New Agreement.
 

Accordingly, in consideration of the mutual promises herein contained, Company and you agree as follows.

	
            I.
 	
            Effective Date and Term.
 

The New Agreement will be effective and binding upon signature of all parties (the “Effective Date”). The term of employment under the New Agreement (the “Term”) shall commence on May 1, 2006 (the “Commencement Date”) and will terminate on December 31, 2009. On the Effective Date, this New Agreement shall supersede and release the letter agreement entered into September 24, 2001, setting forth the terms of your employment from and after that date (the “2001 Agreement”); except that, if this New Agreement is executed and becomes effective before the Commencement Date, then your compensation and benefits for the period between the Effective Date and Commencement Date shall be as set forth in the 2001 Agreement.

	
            II.
 	
            Duties and Titles.
 

	
             
 	
            A.
 	
            Board Positions. You shall remain Vice Chairman and Board Member of NTS, Inc. through the June 2006 Shareholders meeting, at which time you voluntarily 
 

 

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shall resign from the Board. Although you will not be a Board member after June 2006, you agree, if requested by the Chairman or CEO, to attend Board meetings and/or senior level meetings to provide advice and guidance on certain matters. Further, you agree that for the Term you shall, if requested, continue to serve as a director on the Board of any subsidiaries of National Technical Systems, Inc. as requested by the CEO.

	
             
 	
            B.
 	
            Chief Information Officer. You shall serve in the capacity of, and have the title, Chief Information Officer of the Company; provided however that nothing shall prevent the CEO from eliminating the position of CIO or replacing you in such position at the discretion of the CEO. If the CEO identifies a candidate to replace you as CIO, then after the replacement is identified such candidate will serve as Vice–CIO for one year, after which time you will relinquish the position and serve as an advisor to the new CIO for the remainder of the Term continuing with the salary and benefits set forth herein.
 

	
             
 	
            C.
 	
            XXCAL Japan/Asia Operations. You shall serve as Chairman of the Board and CEO of XXCAL, and will be responsible for supervising the Company’s participation in XXCAL Japan, including traveling to Japan as you deem necessary. You shall also continue to support Osman Sakr in executing the technology transfer strategy currently underway in Japan, Taiwan and China. Nothing herein shall prevent the CEO from restructuring the Company or any of its subsidiaries and eliminating these positions if deemed appropriate in the CEO’s discretion, provided, however, that the elimination of one or more of these positions shall not affect the Company’s financial obligations to you under this New Agreement.
 

	
             
 	
            D.
 	
            Senior Management Team. Throughout the term of the New Agreement, you will be considered a part of the Senior Management Team, as the term currently is used in practice. This does not mean that all benefits will be equal with other members of the Senior Management Team. Your benefits will be determined as set forth in this New Agreement. It is anticipated that, after you vacate your National Technical Systems, Inc. Board position at the June, 2006, Shareholders meeting, you no longer will be considered an “executive officer” of National Technical Systems, Inc. for purposes of SEC rules.
 

	
             
 	
            E.
 	
            Exclusivity/Time
Commitment. While you will be considered a “full
time” employee, you will not be required to devote all of your available
professional time to these duties, but it is expected that you shall devote such
time as reasonably necessary to adequately perform the duties assigned. It is
expected that the amount of time committed to your services will gradually
reduce over time, with greater time demands during the first year of the Term,
reducing significantly in later years. Because the parties understand that your
services are non-exclusive, you can perform services for other companies,
provided such companies are not competitive with the Company, and your services
to such other companies do not interfere the performance of your duties to the
Company. You shall inform the CEO of any and all outside work you perform,
including the name of the Company(ies) for which you perform such work. In the
event that 
 

 

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you and the Company have a disagreement concerning whether any outside work is
“competitive” with the Company, then the Company and you shall
negotiate in good faith to resolve the dispute. If you and the Company are not
able to resolve the dispute, then the matter shall be submitted to binding
mediation before a mediator who works in the Los Angeles area.

	
             
 	
            F.
 	
            Duties Subject to CEO. For purposes of this New Agreement, you shall report to the CEO. During the term of this New Agreement, you will, to the best of your ability and skill, render personal services in the performance of such tasks as may be assigned by Company. Nothing herein shall prevent the CEO from restructuring the company or any of its subsidiaries and/or eliminating any of the positions held by you if deemed appropriate in the CEO’s discretion, provided, however, that the elimination of one or more of these positions shall not affect the Company’s financial obligations to you under this New Agreement.
 

	
            III.
 	
            Compensation.
 	
             

	
             
 	
            A.
 	
            Base Salary.
 	
             

	
             
 	
            1)
 	
            Commencement – April 30, 2007:  
 	
            $110,000 annually
 
	
             
 	
            2)
 	
            May 1, 2007 – April 30, 2008:  
 	
            $100,000 annually
 
	
             
 	
            3)
 	
            May 1, 2008 – April 30, 2009:  
 	
            $  80,000 annually
 
	
             
 	
            4)
 	
            May 1, 2009 – Dec. 31, 2009:  
 	
            $  60,000 annually
 
						

B.            Annual Bonus Potential. You will be eligible to receive bonuses based on the Company’s overall financial performance for Fiscal Years 2007, 2008 and 2009. The bonus shall be based upon criteria used for evaluating other senior managers whose bonus is measured by overall Company performance. If the Company achieves “target” (as such term is defined in executive bonus plans consistent with past practice) you shall receive a bonus equal to 12.5% of your annualized base salary (which for purposes of computing this bonus shall be deemed to be $110,000 for the term of this New Agreement), and you shall be entitled to receive this bonus payment even if the Company elects to eliminate any or all of your positions as set forth in this
New Agreement. The CEO will also consider awarding you an additional discretionary bonus if the Company substantially exceeds its performance targets, and in such case will give special consideration to the performance of Japan.

	
            IV.
 	
            Benefits.
 

Throughout the term, so long as you are eligible and such benefits are offered by the Company to its employees, you shall be entitled to the following benefits.

A.           Health Insurance. You shall be eligible to participate in any health insurance benefit generally available to senior executives.

B.            Life Insurance. You already have in place certain life insurance policies. Such life insurance policies will be treated as follows:

1.

            Company Policies. With respect to the
“company owned” whole life insurance policies described on Schedule 1
to this New Agreement (the “Company Policies”), since these 

 

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policies
are self funding, the Company will not be required to make any out-of-pocket
premium payments for the Company Policies. When your employment with the Company
terminates, ownership of the Company Policies (or in the case of your death
during the Term, any proceeds under said policies received by the Company) will
be immediately transferred to you (or to your estate in the event of your death)
at no cost.

2.            Personal Policies. In addition to the Company Policies, you have other life insurance policies (“Personal Policies”) under which your wife is the beneficiary. (These policies are described on Schedule 2 to this New Agreement). The Company has been paying premiums on these policies on your behalf. The Company will continue paying the premiums (up to a maximum of $35,000 per year) on each of the Personal Policies until the earlier of termination of your employment or such time as any such Personal Policy becomes self-funding, at which time the Company shall have no further obligation to pay such premiums.

C.           Auto Allowance and Expenses. The Company shall continue your current Auto Allowance and Expense Plan ($1,250/month plus expenses) for the duration of this New Agreement. An auto allowance and expense benefit that is limited to the CEO and/or Chairman and/or certain retired executives with specifically negotiated benefits, will not be considered “applicable to a group or class of senior managers.”

D.           Club Membership. Company will pay for one club membership up to $800/month so that you will have available to you a club to utilize for Company business purposes.

E.            Medical Reimbursement. The Company shall continue your current Medical Expense Reimbursement Plan for the duration of this New Agreement. A Medical Expense Reimbursement benefit that is limited to the CEO and/or Chairman and/or certain retired executives with specifically negotiated benefits, will not be considered “applicable to any group or class of executives.”

F.            Long Term Care Insurance. Company shall continue to pay the premiums for your Long Term Care insurance policy for the duration of this New Agreement.

	
            V.
 	
            General Release.
 

In consideration for the obligations of Company incurred in connection with this New Agreement, you agree to enter into the Mutual General Release attached hereto. Such release shall be executed and delivered concurrently with the execution of this New Agreement. The Mutual General Release Agreement attached hereto is incorporated herein by reference and made a part hereof, as if fully set forth herein. Execution of the General Release Agreement, without revocation, is a material term of, and consideration for the Company entering into this New Agreement on the terms and conditions set forth herein. If you revoke the Mutual General Release Agreement after executing same, this New Agreement automatically will be revoked, and will be null and void for a failure of consideration.

	
            VI.
 	
            Change of Control.
 

If, at any time
during the first twenty-four (24) months after the Effective Date of this
Agreement, a tender offer is made by, or an agreement is entered into with, any
third party entity 

 

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to acquire National Technical Systems, Inc. common stock and
such tender or agreement results in the acquirer acquiring more than 50% of the
shares of National Technical Systems, Inc. at a cash price of more than $6.00
per share (hereinafter referred to as a “Change of Control”), then you
shall be entitled to unilaterally terminate this New Agreement and you shall
receive compensation as set forth below. The amount of compensation due to you
in the event you elect to terminate this Agreement following a Change of Control
as defined above, shall be (a) a lump sum amount equal to the value of all
compensation and benefits remaining to be paid under this Agreement from the
date of the closing of such change of control through the end of the term of
this New Agreement, plus (b) an amount equal to twice the annual average cash
compensation (salary and bonus) paid to you for the fiscal years ending in 2004,
2005 and 2006. Payment of any compensation under this paragraph will be made 10
days after the close of the transaction whereby a Change of Control
occurs.

	
            VII.
 	
            Additional Terms.
 

A.           Indemnification. The Indemnification Agreement between Hoffman and NTS Inc. dated April 20, 2004, and clarified on March 28, 2006 is hereby affirmed.

	
             
 	
            B.
 	
            Termination Prior to Expiration of Term.
 

1)            Death, Voluntary Resignation, Permanent Disability, or Cause. Your employment will terminate immediately upon your death, permanent disability (as herein defined) or resignation, or if the Company terminates you “for cause,” (as herein defined). Except as herein provided, in such case all compensation and benefits shall cease upon termination. The term “permanent disability” shall mean that you are unable to perform your material duties hereunder for a period of six (6) consecutive months. The term “Cause” shall be defined to mean: (A) your material breach of this New Agreement which is not cured fully within fifteen (15) business days after written notice to you identifying such breach, provided, that such fifteen (15) day period shall be extended an additional fifteen (15) business days where such breach is not reasonably susceptible of cure within (15) days and you have undertaken efforts to cure such breach; (B) your conviction of or plea of no contest to any crime committed, that has a direct and material effect on the business of the Company; (C) your willful failure or refusal to perform your material duties hereunder, unless such failure or refusal is in respect to an instruction to engage in behavior which you believe to be illegal, unethical or not in the best interest of the Company; of (D) your recklessness or gross negligence in the performance of your duties that has a material and adverse affect upon the business of the Company and which has not been cured within the time periods set forth above.

2)            In the event your employment with the Company terminates other than as set forth in 1) above, you shall be entitled to receive the full compensation and benefits (or the dollar equivalent of any benefits (or the dollar equivalent of any benefits that are not able to continue following termination) set forth herein for the remainder of the Term.

	
            VIII.
 	
            General Provisions.
 

 

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            a)
 	
            Further Actions and Assurances. Each party agrees that upon the request of the other it will, from time to time, do any and all such acts and things as may be reasonably required, to carry out the obligations of such party hereunder.
 

	
             
 	
            b)
 	
            Headings and Captions. The subject headings of the paragraphs of this Agreement are included for purposes of convenience only, and shall not affect the construction or interpretation of any of the provisions of this New Agreement.
 

	
             
 	
            c)
 	
            Company Policies. 
Your employment shall be subject to all policies generally applicable to senior
employees, including travel and expense reimbursement policies, and policies regarding protection and non-disclosure of confidential
and proprietary information.
 

	
             
 	
            d)
 	
            Disputes. Any dispute regarding any aspect of this New Agreement or any act which allegedly has or would violate any provision of this New Agreement will be submitted to arbitration in Los Angeles County, California, before an experienced employment arbitrator licensed to practice law in California. Such arbitration shall be conducted in accordance with the rules of the then-current Model Employment Arbitration Procedures of the American Arbitration Association (“AAA”) and shall be the exclusive remedy for such claim or dispute. Such arbitration shall be completed no later than 180 days after the service of a request to arbitrate by either party. By agreeing to this provision, the parties acknowledge and agree that each is waiving its/his right to a jury trial of any claims. Should you or
the Company hereafter institute any legal action or administrative proceeding against the other with respect to any claim waived by this New Agreement, or pursue any dispute or matter covered by this paragraph by any method other than said arbitration, the responding party shall be entitled to recover from him/it all damages, costs, expenses, and attorneys’ fees incurred as a result of such action.
 

	
             
 	
            e)
 	
            Security Requirements. To the extent that this New Agreement involves access to security information, the applicable contract security provisions in effect on the date of this New Agreement are hereby incorporated into this New Agreement, and made a part hereof.
 

	
             
 	
            f)
 	
            Notices. Unless otherwise notified in writing, each party shall send any notices required under this New Agreement to the other party by certified mail, return-receipt requested overnight courier or personal delivery, at the addresses shown below:
 

	 YOU:
	 Marvin
        Hoffman

        128 Ketch Mall

        Marina del Rey, CA 90292

 

 

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	 COMPANY:
	 National
        Technical Systems

        Attention : Cynthia R. Maher, Corporate Counsel

        24007 Ventura Blvd., Suite 200

        Calabasas, CA 91302

 

	
             
 	
            g)
 	
            Entire Agreement.
This New Agreement and the attached General Release Agreement constitute the
entire agreement between the parties hereto pertaining to the subject matter
hereof and supersedes all prior and contemporaneous agreements and
understandings of the parties in connection therewith. No supplement,
modification or amendment of this New Agreement shall be binding unless it is
set forth in a writing stating that it is intended to modify or amend this New
Agreement and is executed by the parties hereto. No waiver of any of the
provisions of this New Agreement shall be deemed, or shall constitute, a waiver
of any other provision hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver and no waiver shall be binding unless executed in
writing by the party making the waiver.
 

	
             
 	
            h)
 	
            Assignment. This New Agreement shall be binding upon, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors, and assigns.
 

	
             
 	
            i)
 	
            Binding Effect. Nothing in this New Agreement, whether expressed or implied, is intended to confer upon any person other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this New Agreement, nor is anything in this New Agreement intended to relieve or discharge the liability of any other entity to either party hereto, nor shall any provision hereof give any entity any right of subrogation against, or action against any party to this New Agreement.
 

	
             
 	
            j)
 	
            Counterparts. This New Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 

	
             
 	
            k)
 	
            Governing Law. This New Agreement shall be construed in accordance with, and governed by, the laws of the State of California, without regard to conflicts of law rules. You acknowledge that you currently reside in California and agree to retain jurisdiction in California even if you decide to reside outside California.
 

	
             
 	
            l)
 	
            Venue. Any suit to enforce any part of this New Agreement must be brought in a California court of competent jurisdiction in the County of Los Angeles, State of California. You hereby consent to the jurisdiction of such Courts, even if you do not reside in California at the time such action is commenced.
 

 

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            m)
 	
            Severability. The invalidity, in whole or in part, of any provision of this New Agreement shall not affect the validity or enforceability of any other of its provisions.
 

	
             
 	
            NTS Technical Systems,
 a California corporation

 By:       /s/ William C. McGinnis           
                  
                                                                            William C. McGinnis

Its:        Chief Executive Officer

Dated: May 8, 2006
 

 

The above terms and conditions are agreed to and accepted.

 

	
            Dated: May 5, 2006
 	
            By:       
/s/ Marvin Hoffman     
                              
                                                                               Marvin Hoffman  
 

 

The undersigned agrees to the termination of the 2001 Agreement.

	
             
 	
            National Technical Systems, Inc. 
 a California corporation 

 By:       /s/ William C. McGinnis
                             
                                                                       William C. McGinnis
 Its:                                                               Chief Executive Officer 

 Dated:          May 8, 2006   
 

 

 

 

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Schedule 1 - Company
Policies  

	Insurance Co. 	Policy # 	Policy

Date 	Policy

Type 	Insured 	Beneficiary 
	  
	NML 	10-573-446 	2/14/1988 	90 Life 	Marvin Hoffman 	XXCAL 
	NML 	9-385-851 	10/15/1984 	EOL 	Marvin Hoffman 	XXCAL 
	NML 	8-154-833B 	8/11/1980 	Ordinary Life 	Marvin Hoffman 	XXCAL 
	Manhat 	748-333 	8/10/1981 	Whole Life 	Marvin Hoffman 	XXCAL 
	Manulife 	4-056-250 	1/26/1987 	Premier Plus 	Marvin Hoffman 	XXCAL 

NML = Northwestern Mutual
Life  

Schedule 2 - Personal
Policies  

	Insurance Co. 	Policy # 	Policy

Date 	Policy

Type 	Insured 	Beneficiary 
	  
	NML 	14-224-996 	05/14/1997 	ECL 	Marvin Hoffman 	Marni Hoffman 
	NML 	14-166-567 	12/25/1994 	90 Life 	Marvin Hoffman 	Marni Hoffman 
	NML 	14-166-565 	09/14/1994 	90 Life 	Marvin Hoffman 	Marni Hoffman 
	NML 	14-166-559 	09/14/1994 	Adj Comp Life 	Marvin Hoffman 	Marni Hoffman 

NML = Northwestern Mutual
Life  

 

 

9Exhibit 10.2

MUTUAL GENERAL RELEASE AGREEMENT

THIS MUTUAL GENERAL RELEASE AGREEMENT (“Agreement”) is made and entered into by and between National Technical Systems, Inc., a California corporation, its subsidiaries, affiliates and related companies, including, but not limited to, NTS Technical Systems, a California corporation, and XXCAL, Inc., a California corporation (all of which entities hereinafter collectively are referred to as “Company),” on the one hand, and Marvin Hoffman, an individual (“Hoffman”), on the other hand, and is based on the following recitals of facts.

A.           Hoffman has been employed as the Company’s Chief Information Officer (“CIO”) pursuant to a letter agreement dated September 24, 2001, which agreement superseded and replaced all prior agreements between the parties (the “2001 Agreement”). Hoffman also serves as Vice-Chairman of the Company’s Board of Directors, as a member of the Senior Management Committee and a member of the Senior Marketing Committee.

B.           Pursuant to the terms of the 2001 Agreement, National Technical Systems, Inc. exercised its option to purchase Hoffman’s National Technical Systems, Inc. shares on March 28, 2006. The sale of said stock was consummated on March 28, 2006.

C.           On April 20, 2004, National Technical Systems, Inc. and Hoffman entered into an Indemnification Agreement. This Mutual General Release Agreement is not intended to, and does not, release the rights, duties and obligations of the parties under the Indemnification Agreement and the letter of clarification dated March 28, 2006, copies of which are attached hereto. 

D.           Pursuant to a new employment agreement entered into concurrently with the execution of this Agreement (1) Hoffman and National Technical Systems, Inc. have mutually agreed to terminate the 2001 Agreement, and (2) Hoffman and NTS Technical Systems, a California corporation (“NTS”) have agreed to continue Hoffman’s employment with NTS pursuant to the terms set forth in such new employment agreement.

	
             
 	
            E.
 	
            Hoffman is over age forty (40).
 

NOW, THEREFORE, in consideration of the mutual terms, conditions and covenants herein set forth, the parties hereto agree as follows.

1.            In consideration for NTS entering into a new employment agreement with Hoffman effective concurrently herewith and the terms and provisions of this Agreement, Hoffman agrees that, except for the rights, duties and obligations of the parties under the Indemnification Agreement, this Agreement constitutes a fully executed settlement and a general and special release of any and all of Hoffman’s claims, and does hereby forever relieve, release, and discharge, any and all debts, liabilities, demands, obligations, liens, promises, acts, agreements, costs, and expenses (including, but not limited to, attorneys’ fees), damages, actions, and causes of action, of whatever kind or nature arising out of or related to any acts, events, or omissions occurring on or before the date
that Hoffman executes this Agreement, against 

 

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Company and any and all of its affiliated or related business entities, including all of their respective predecessors, successors, heirs, assigns, owners, attorneys, parent corporation, subsidiaries (whether or not wholly-owned), divisions, partners, officers, directors, agents, employees, former employees, executors, administrators, and insurers, through the date of execution of this Agreement, arising out of or in any way related to the 2001 Agreement, Hoffman’s employment with the Company, his membership as Vice-Chairman of the Board of Directors, and/or the termination of said employment and membership, the exercise by National Technical Systems, Inc. of its option under the 2001 Agreement and the purchase of stock pursuant to such exercise, including but not limited to, any claims arising under the Age Discrimination in Employment Act of 1967, and/or any common law claim for breach of contract,
breach of the covenant of good faith and fair dealing, bad faith denial of the existence of a contract, infliction of emotional distress (whether negligent or intentional), misrepresentation (whether negligent or intentional), or wrongful termination in violation of public policy.

2.            In consideration of the terms and provisions of this Agreement, Company, on behalf of itself and all of its affiliated or related business entities (including all of their respective predecessors, successors, heirs, assigns, owners, attorneys, parent corporation, subsidiaries (whether or not wholly-owned), divisions, partners, officers, directors, agents, employees, former employees, executors, administrators, and insurers), does hereby forever relieve, release, and  discharge Hoffman and his successors and assigns from any and all claims, debts, liabilities, demands, obligations, liens, promises, acts, agreements, costs, and expenses (including, but not limited to, attorneys’ fees), damages, actions, and causes of action, of whatever kind or nature arising out of or
related to any acts, events, or omissions occurring on or before the date that Company executes this Agreement.

3.            Hoffman is hereby advised (a) that Hoffman has the right to consult with his attorney prior to signing this Agreement; (b) that Hoffman has 21 days in which to consider and accept this Agreement; and (c) that Hoffman has a period of seven (7) days following his execution of this Agreement in which he may revoke this Agreement by communicating such revocation in a writing directed to Cynthia R. Maher, Corporate Counsel, National Technical Systems, 130 Chaparral Court, Suite 250, Anaheim, CA  92869. By revoking this Agreement, Hoffman also revokes the employment agreement executed concurrently herewith pursuant to which Hoffman otherwise would become employed by NTS through December 31, 2009. If Hoffman does not advise the Compnay within such seven (7) day period of his revocation
of the Agreement, the Agreement will become enforceable and effective upon the expiration of the seven days.

4.            Except for the rights, duties and obligations of the parties under the Indemnification Agreement and the letter of clarification dated March 28, 2006, the Company and Hoffman acknowledge and understand that this Agreement includes a specific waiver by Hoffman and Company, respectively, of the provisions of Section 1542 of the California Civil Code and any rights or benefits Employee or Company has or may have thereunder. Section 1542 of the California Civil Code provides as follows:

 

 

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      	“
        A general release does not extend to claims which the creditor does not
        know or suspect to exist in his favor at the time of executing the release,
        which if known by him must have materially affected his settlement with
        the debtor.” 

5.            This Agreement shall not be construed as an admission by the Company or Hoffman of any discriminatory, improper, wrongful, fraudulent, tortuous or unlawful actions, or any other wrongdoing whatsoever toward the other or any other person or persons, and the Parties specifically denies any wrongdoing toward one another against Hoffman or any other person or persons.

6.            Hoffman and Company represent that neither of them presently has on file any complaints, charges or claims against the other in any court or administrative forum, or before any governmental agency or entity.

7.            Hoffman and Company represent that neither of them will hereafter file any complaints, charges or claims (civil, administrative, workers’ compensation, or criminal) against the other with any administrative, state, federal or governmental entity, agency, board or court based upon any claim(s) released in this Mutual General Release Agreement.

8.            Any dispute regarding any aspect of this Agreement or any act which allegedly has or would violate any provision of this Agreement will be submitted to arbitration in Los Angeles County, California, before an experienced employment arbitrator licensed to practice law in California. Such arbitration shall be conducted in accordance with the rules of the then-current Model Employment Arbitration Procedures of the American Arbitration Association (“AAA”) and shall be the exclusive remedy for such claim or dispute. Such arbitration shall be completed no later than 180 days after the service of a request to arbitrate by either party. By agreeing to this provision, the parties acknowledge and agree that each is waiving its/his right to a jury trial of any claims. Should
Hoffman or the Company hereafter institute any legal action or administrative proceeding against the other with respect to any claim waived by this Agreement, or pursue any dispute or matter covered by this paragraph by any method other than said arbitration, the responding party shall be entitled to recover from him/it all damages, costs, expenses, and attorneys’ fees incurred as a result of such action.

9.            The Parties acknowledge and understand that both Parties have had the right to consult with an attorney of his/its choice concerning the terms, execution and effect of this Agreement.

10.          The Parties sign this Agreement voluntarily and with a full understanding of and agreement with its terms for the purpose of receiving additional pay and benefits from the Company and Hoffman’s continuous services to the Company.

11.          The Parties to this Agreement represent that they have had an opportunity to review the Agreement, that they read and understand the Agreement, that they are fully aware of the contents of this Agreement and of its legal effect, and mutually warrant and represent that this Agreement is executed voluntarily and without duress or undue influence on the part of or on behalf of any party thereto.

 

 

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12.          This Agreement shall be construed in accordance with the laws of the State of California.

IN WITNESS WHEREOF, the undersigned have executed this Mutual General Release Agreement as of the dates set forth below.

	
            NATIONAL TECHNICAL SYSTEMS, INC.,
 a California corporation
 
 By:       /s/ William C. McGinnis          
                  
               William C. McGinnis
 Its:        Chief Executive Officer
 
 Date:   May 8, 2006
 	
            
 
 
 /s/ Marvin Hoffman       
                                
 Marvin Hoffman
 
 
 Date:   May 5, 2006
 	
             
 
	
             
 	
             
 	
             

 

 

 

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