Document:

exv10w14

 

Exhibit 10.13

SUPERIOR CONSULTANT COMPANY, INC.

Employment Agreement

September 25, 2003

Mr. George S. Huntzinger

RR4, Box 610

42nd Street

Dallas, PA 18612

Dear George:

               This letter sets forth our agreement on matters relating to your
employment with SUPERIOR CONSULTANT HOLDINGS CORPORATION, a Delaware
Corporation (“Superior”, “the Company”), 17570 West 12 Mile Road, Southfield,
Michigan 48076 as President and Chief Operating Officer of the Company. This
Employment Agreement supersedes any and all prior Employment Agreements and
Amendments per the effective date below.

     1.      Your employment with the Company shall commence as of October 11, 2000
(“the Commencement Date”) as stated in your original Employment Agreement,
dated October 11, 2000. Terms of this Employment Agreement shall be effective
September 25, 2003. There is no fixed or minimum term to this Agreement. You
recognize that you are serving solely at the will of the Company. Further, you
recognize that the Company, with or without cause, can terminate your
employment for any reason whatsoever, at any time by notice from the Company.
Except as otherwise herein provided, you shall have no continuing right to
compensation and bonus. You shall have such responsibilities and perform such
duties appropriate to such position as shall be reasonably assigned to you by
the CEO of the Company. You will initially serve as President and Chief
Operating Officer. You shall devote all your working time and efforts to the
business of the Company. You represent that you are not bound by the
provisions of any non-competition, confidentiality or similar agreement not
heretofore disclosed by you in writing to the Company. You also represent and
warrant that you have never been convicted of a felony.

     2.      Your salary shall be at the rate of $11,630.77 bi-weekly, payable in
accordance with the normal payroll practices of the Company and subject to any
payroll or other deductions as may be required to be made pursuant to law,
government order, or by your written agreement or consent.

     3.      You shall be entitled to participate in all employee benefit plans of
the Company from time to time in effect, including group insurance plans,
subject to the provisions of such plans and programs from time to time in
effect. Insurance coverages shall commence in accordance with the eligibility
rules, company policy and the requirement of the insurance carrier. The
company reserves the right to change or revoke any policies or benefits at any
time. You shall be entitled to three (3) weeks of vacation each calendar year.

               You will be reimbursed for reasonable, necessary and authorized expenses
incurred in the course of service and solicitation of clients in accordance
with company policy.

 

 

Expense reimbursement incurred in servicing a client will at no time be greater
than that enjoyed by the company in its service agreement with the client.

     4.      In the event that your employment with the Company shall be terminated
by the Company without Cause, the Company shall continue your salary (in
bi-weekly installments) as if you were still employed by the Company for a
period of six months from the date of termination. You shall be under no
obligation to seek other employment or otherwise to mitigate the Company’s
obligation to continue your salary. The Company shall, during such six-month
period, continue to provide you with health insurance benefits on the same
basis, including any Company-paid premiums, as such benefits are provided to
employees of the Company, except that such six-month coverage period shall be
coterminous and shall apply to federally mandated COBRA continuation periods..
Your rights under the other benefit plans and programs of the Company shall be
determined in accordance with the terms of such plans and programs as then in
effect. In the event of such termination neither you nor the Company shall
have any further rights or obligations under this Agreement, except as set
forth in Sections 5, 6, 7, and 8 of this Agreement.

               A termination of your employment by you for Good Reason (as hereinafter
defined) shall be deemed a termination of employment by the Company without
Cause.

               In the event that your employment with the Company shall be terminated by
the Company for Cause or in the event that your employment is terminated
voluntarily by you or as a result of your death or Disability, you shall be
entitled to receive your salary through the date of termination. Your rights
under benefit plans and programs of the Company shall be determined in
accordance with the terms of such plans and programs as then in effect. In the
event of such termination neither you nor the Company shall have any further
rights or obligations under this Agreement, except as set forth in Sections 5,
6, 7, and 8 of this Agreement.

               For purposes of this Agreement: “Cause” shall mean (i) the commission of
a felony or a crime involving moral turpitude or the commission of any other
act or omission involving dishonesty or fraud with respect to the Company or
any of its subsidiaries or any of their respective customers or suppliers, (ii)
conduct causing the Company or any of its subsidiaries substantial public
disgrace or disrepute, (iii) substantial and repeated failure continuing after
written notice thereof to perform duties of the office held by you as
reasonably directed by the Chief Executive Officer of the Company, (iv) gross
negligence or willful misconduct with respect to the Company or any of its
subsidiaries, or (v) any material breach of Section 5 or 6 of this Agreement or
any breach of Section 7 of this Agreement. “Good Reason” shall mean (i) an
involuntary reduction in your base salary from the annualized rate in effect on
the date hereof or as hereafter increased; (ii) without employee’s prior
consent (which shall not be unreasonably withheld), any material adverse change
in title or responsibilities and authority. “Disability” shall mean your
failure by reason of sickness, accident or physical or mental disability or
incapacity to substantially perform the duties and responsibilities of your
employment with the Company for ninety (90) days (whether or not consecutive)
in any period of twelve (12) consecutive months.

               In the event employment with the company is terminated by either you or
the company, you agree to return all materials acquired during the term of
employment with the company. Specifically, this is to include without
limitation, computer disks, computers, work papers, manuals, training manuals,
notes, articles, phone lists, correspondence, proposals, addresses, reports,
phone cards, office keys and any and all material related to employment with
the company.

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     5.      You agree, during the term of this Agreement and at all times
thereafter, to treat as confidential and, except as required in the performance
of your duties under this Agreement, not to disclose, publish or otherwise make
available to the public or to any individual, firm or corporation (other than
an employee or professional advisor of the Company), or use any confidential
material (as hereinafter defined). You agree that all confidential material is
the exclusive property of the Company, and you agree to return such material to
the Company promptly upon the termination of your employment with the Company.
For purposes hereof, the term “confidential material” shall mean all
information in any way concerning the products, projects, activities, business
or affairs of the Company and its clients acquired by you in the course of
providing services to the Company; provided, however, that the term
“confidential material” shall not include information which (i) becomes
generally available to the public other than as a result of an unauthorized
disclosure by you, (ii) was available to you on a non-confidential basis prior
to your service with the Company or (iii) becomes available to you on a
non-confidential basis from a source other than the Company, provided that such
source is not bound by a confidentiality agreement with the Company. You also
recognize that all company resources of any kind and nature including but not
limited to personnel; equipment and telephones; software; written materials,
methods and procedures; client and prospect names, files and documentation are
the sole property of the company and shall not be used for personal or any
other non-company reasons.

     6.      You agree that all inventions and copyrightable or patentable material,
and all trade secrets, processes, know-how, practices, designs, technologies
and methods, including but not limited to computer software, which you may make
or develop during the period of your employment with the Company relating to
the business of the Company shall belong to and shall be owned by the Company,
whether you shall make or develop them individually or jointly with others or
on your own time or on the time of the Company. You agree that, upon the
request of the Company and without further consideration, you shall expressly
assign to the Company all of your right, title and interest in and to each such
invention, material, trade secret, process, know-how, practice, design,
technology and method and shall sign all papers and do all other acts
necessary, at the Company’s expense, to assist the Company to obtain patents or
copyrights on or otherwise to perfect the Company’s right, title and interest
in and to each such invention, material, trade secret, process, know-how,
practice, design, technology and method in any and all countries.

     7.      You agree that, in consideration of your employment with the Company,
you will not, during the period of your employment with the Company and
thereafter for a period of one year commencing on the date of termination of
your employment with the Company, (a) engage, directly or indirectly, whether
as principal, agent, distributor, representative, consultant, employee,
partner, stockholder, limited partner or other investor (other than an
investment of not more than (i) five percent (5%) of the stock or equity of any
corporation the capital stock of which is publicly traded or (ii) five percent
(5%) of the ownership interest of any limited partnership or other entity) or
otherwise, in any business in direct competition with the business then
conducted by a partner company of the Company or with the business then
conducted by the Company, or (b) solicit or entice or endeavor to solicit or
entice away from the Company any person who was an employee of the Company,
either for your own account or for any individual, firm or corporation, or
employ, directly or indirectly, any person who was during the one (1) year
period ending on the date of termination of your employment an employee of the
Company, or (c) solicit or entice or endeavor to solicit or entice away from
the Company (i) any customer, partner or strategic relationship of the Company
or (ii) any corporation, individual or firm in which the Company is, or has
been during the last two months of your employment with the Company, in active
negotiations in becoming a customer or partner or forming a strategic

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relationship either for your own account or for any individual, firm or
corporation. The restriction set forth in clause (a) of this Section 7 shall
not be deemed to prohibit your employment with a corporation or other entity
which owns or operates a business in direct competition with the business then
conducted by a partner company provided that you do not participate in the
operation of such business. For purposes of this Section 7, performing
services after employment with the Company has terminated in any capacity for
organizations of which you have existing, documented relationships established
prior to your employment with the Company shall not be considered a breach of
this provision.

     You acknowledge that the provisions of this Section 7 are in consideration
of: (i) your employment with the Company and (ii) additional good and valuable
consideration as set forth in this Agreement. You expressly agree and
acknowledge that the restrictions contained in this Section 7 do not preclude
you from earning a livelihood, nor do they unreasonably impose limitations on
your ability to earn a living. In addition, you agree and acknowledge that the
potential harm to the Company of the non-enforcement of this Section 7
outweighs any potential harm to you of its enforcement by injunction or
otherwise. You acknowledge that you have carefully read this Agreement, and
have given careful consideration to the restraints imposed upon you by this
Agreement and are in full accord as to their necessity for the reasonable and
proper protection of the Company. You expressly acknowledge and agree that
each and every restraint imposed by this Agreement is reasonable with respect
to subject matter, time period and geographical area and that you have reviewed
the provisions of this Agreement with your legal counsel.

     8.      In the event of a breach or threatened breach by you of any of the
provisions of Sections 5, 6, or 7 of this Agreement, you hereby consent and
agree that the Company shall (i) be entitled to cease payment of any severance
then being paid to you pursuant to Section 4 of this Agreement and (ii) be
entitled to an injunction or similar equitable relief from any court of
competent jurisdiction restraining you from committing or continuing any such
breach or threatened breach or granting specific performance of any act
required to be performed by you under any of such provisions, without the
necessity of showing any actual damage or that money damages would not afford
an adequate remedy and without the necessity of posting any bond or other
security. Nothing herein shall be construed as prohibiting the Company from
pursuing any other remedies at law or in equity which it may have with respect
to any such breach or threatened breach and in addition the Company shall be
entitled to seek any and all other remedies available at law or in equity. You
agree to indemnify and hold harmless Superior from any claim or cause of
action, including attorney fees, by any person or entity against Superior
arising out of alleged breach by you of any confidentiality agreement,
non-competition agreement or any other restrictions inconsistent with your
foregoing representations. In the event either party takes legal action to
enforce its rights under this agreement, the prevailing party shall also be
entitled to recover its actual costs and attorney fees.

     9.      Should any provision of this Agreement be held by a court or
arbitration panel of competent jurisdiction to be enforceable only if modified,
such holding shall not affect the validity of the remainder of this Agreement,
the balance of which shall continue to be binding upon the parties hereto with
any such modification to become a part hereof and treated as though originally
set forth in this Agreement. The parties further agree that any such court or
arbitration panel is expressly authorized to modify any such unenforceable
provision of this Agreement in lieu of severing such unenforceable provision
from this Agreement in its entirety, whether by rewriting the offending
provision, deleting any or all of the offending provision, adding additional
language to this Agreement, or by making such other modifications as it deems
warranted to carry out the intent and agreement of the parties as embodied
herein to the maximum extent

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permitted by law. The parties expressly agree that this Agreement as so
modified by the court or arbitration panel shall be binding upon and
enforceable against each of them. In any event, should one or more of the
provisions of this Agreement be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions hereof, and if such provision or provisions are not
modified as provided above, this Agreement shall be construed as if such
invalid, illegal or unenforceable provisions had never been set forth herein.

     10.      This Agreement contains all the understandings and representations
between you and the Company pertaining to the subject matter hereof and
supersedes all undertakings and agreements, whether oral or written, if any
there be, previously entered into by you and the Company with respect thereto.

     11.      No provision of this Agreement may be amended or modified unless such
amendment or modification is agreed to in writing and signed by you and by a
duly authorized representative of the Company.

     12.      Any notice to be given hereunder shall be in writing and delivered
personally or sent by certified mail, return receipt requested, addressed to
the party concerned at the address indicated above or at such other address as
such party may subsequently designate by like notice.

     13.      Anything to the contrary notwithstanding, all payments required to be
made by the Company hereunder to you shall be subject to withholding of such
amounts relating to taxes as the Company may reasonably determine it should
withhold pursuant to any applicable law or regulation.

     14.      The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the state Michigan, without regard
to conflict of law principles.

     If the foregoing accurately sets forth our agreement, please indicate your
acceptance hereof on the enclosed counterpart of this letter and return such
counterpart to the Company.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	SUPERIOR CONSULTANT HOLDINGS CORP.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	
 
	

	 	 	 	Richard D. Helppie
	

	 	 	 	Chief Executive Officer

	 	 	 
	Agreed and Accepted:
	 	 
	

	 	 
	

	 	 
	George S. Huntzinger
	 	 

5exv10w16

 

Exhibit 10.16

SUPERIOR CONSULTANT HOLDINGS CORPORATION

Amendment to Employment Agreement

The Employment Agreement dated August 10, 1998, as amended, between Richard R.
Sorensen (“the executive, employee”) and Superior Consultant Company, Inc., a
Michigan Corporation (“the company”), is hereby amended as follows:

	1.	 	The section entitled “Salary” is deleted in its entirety and replaced by
the following:

Salary: The bi-weekly salary will be increased in accordance with (a) and
(b) below, subject to any payroll or other deductions as may be required
to be made pursuant to law, government order, or by written agreement with
or consent of the employee:

	 	a.	 	$8,673.08 effective with the first full payroll period
that occurs after achievement of the company’s first profitable*
quarter following the effective date of this Amendment to
Employment Agreement, and
	 
	 	b.	 	$8,884.62 effective with the first full payroll period
that occurs after achievement of the company’s second profitable*
quarter following the effective date of this Amendment to
Employment Agreement.

*For purposes of this Amendment to Employment Agreement, “profitable” is
defined as positive net income before income taxes.

	2.	 	A new section entitled “Change of Control” is added as follows:

Change in Control:

(a) Acknowledgment. Unless he elects to terminate his employment, the
Employee understands and acknowledges that the Company may be merged or
consolidated with or into another entity and that such entity shall
automatically succeed to the rights and obligations of the Company
hereunder.

(b) No Notice. In any Change in Control situation in which the Employee
has not received written notice at least fifteen (15) business days prior
to the anticipated closing date of the transaction giving rise to the
Change in Control that such successor is willing, as of the closing, to
assume and agree to perform the Company’s obligations under this
Agreement, then such Change in Control shall be deemed to be a termination
of employment by the Company and the Company shall pay the Employee the
Change in Control Payment (as that term is hereafter defined), in one lump
sum on or before the closing of the transaction giving rise to the change
in Control.

(c) Notice Received. In any Change in Control situation in which the
Employee has received written notice from the successor to the Company
that such successor is willing to assume the Company’s obligations
hereunder, the Employee may nonetheless, at his sole discretion, elect to
terminate employment by providing written notice to the Company at least
five (5) business days prior to the anticipated closing of the transaction
giving rise to the

Proprietary and Confidential

Page 1

 

 

Change in Control. In such case, the Company shall pay the Employee the
Change in Control Payment in one lump sum on or before the closing of the
transaction giving rise to the Change in Control.

(d) Date of Termination. For purposes of applying subparagraphs (a) and
(b) above, the effective date of termination will be the closing date of
the transaction giving rise to the Change in Control and all compensation,
reimbursements and lump-sum payments due the Employee must be paid in full
by the Company at or prior to such closing.

(e) “Change in Control” Defined. A “Change in Control” shall be deemed to
have occurred if:

(i) any person other than the Company or any employee benefit plan of the
Company, acquires directly or indirectly the Beneficial Ownership (as
described in Section 13(d) of the Securities Exchange Act of 1934, as
amended) of any voting security of the Company and immediately after such
acquisition such Person is, directly or indirectly the Beneficial Owner of
voting securities representing 50% or more of the total voting power of
all of the then-outstanding voting securities of the Company;

(ii) the stockholders of the Company shall approve a merger,
consolidation, recapitalization, or reorganization of the company, a
reverse stock split of outstanding voting securities, or consummation of
any such transaction if stockholder approval is not sought or obtained,
other than any such transaction which would result in at least 75% of the
total voting power represented by the voting securities of the surviving
entity outstanding immediately after such transaction being Beneficially
Owned by at least 75% of the holders of outstanding voting securities of
the company immediately prior to the transaction, with the voting power of
each continuing holder relative to other such continuing holders not
substantially altered in the transaction; or

(iii) the stockholders of the company shall approve a plan of complete
liquidation of the Company or an Agreement for the sale or disposition by
the Company of all or a substantial portion of the Company’s assets (i.e.,
50% or more of the total assets of the Company.)

(f) Notice of Anticipated Change in Control. The Employee shall be
notified in writing by the Company at any time that the Company or any
member of its Board anticipates that a Change in Control may take place.

(g) Taxes, Interest or Penalties.

(i) The Employee shall be reimbursed by the Company or its successor for
any excise taxes and/or interest or penalties that the Employee incurs
under Section 4999 of the Internal Revenue code of 1986, as amended (or
any similar taxes, interest or penalties), as a result of any Change in
Control or the receipt of any amount paid or payable hereunder. Such
amount will be due and payable by the Company or its successor within (10)
days after the Employee delivers a written request for reimbursement
accompanied by a copy of his tax returns) showing the excise tax actually
incurred by the Employee.

(ii) Notwithstanding anything contained herein to the contrary, the
Employee shall have the right to refuse to accept amounts payable under
this section to the extent that such

Proprietary and Confidential

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amounts would subject the Employee to, or render the Employee liable for,
any excise taxes and/or interests or penalties under Section 4999 of the
Internal Revenue Code of 1986, as amended (or any similar taxes, interest
or penalties).

(h) Change in Control Payment. As used herein the term “Change in Control
Payment” means an amount equal to three (3) times the full annual base
salary in effect for the year of termination.

	3.	 	This amendment becomes effective February 28, 2002. Terms of Employment
Agreement dated August 10, 1998, as amended, will prevail until February
27, 2002.

Propietary and Confidential

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	4.	 	Except as amended hereof, all terms and provisions of the Compensation
Agreement dated August 10, 1998, as amended, remain in full force and effect.

Signatures:

Acknowledged and accepted for Superior Consultant Company, Inc.

	 	 	 	 	 
	
	 	 	 	February 28, 2002
	
 
	 	
 
	 	
 
	Name
	 	Title
	 	Date

I hereby acknowledge that I have voluntarily entered into this Amendment to
Employment Agreement after having a full and adequate opportunity to review its
provisions.

Acknowledged and accepted

	 	 	 	 	 
	
	 	 	 	February 28, 2002
	
 
	 	
 
	 	
 
	Name
	 	Title
	 	Date

Proprietary and Confidential

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