Document:

Retirement Agreement with William H. Haltrip

 

EXHIBIT 10.02

RETIREMENT AGREEMENT

          This Retirement Agreement (this “Agreement”) is entered into as of June
25, 2003 between Technology Solutions Company, a Delaware corporation (the
“Company”), and William H. Waltrip (the “Executive”).

          WHEREAS, the Executive currently serves as member and Chairman of, the
Board of Directors of the Company and as a director and officer of subsidiaries
of the Company; and

          WHEREAS, the Company and the Executive desire to set forth herein their
mutual agreement with respect to all matters relating to (i) the Executive’s
retirement and resignation as a director and officer of, and cessation of
employment with, the Company, (ii) the Executive’s retirement and resignation
as a director and officer of subsidiaries of the Company and (iii) the
Executive’s release of claims, all upon the terms set forth herein.

          NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, the adequacy and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby agree as follows:

          1.       Retirement; Termination of Employment. The Executive hereby retires
and resigns as the Chairman of the Board of Directors of the Company and as a
member of the Company’s board of directors, from all directorships and offices
of the Company’s subsidiaries and from all other positions (if any) with the
Company and its affiliates, effective as of the date hereof (the “Retirement
Date”). On the Retirement Date, the Executive shall cease to be a director,
officer and employee of, or have any other position with, the Company or its
subsidiaries or any affiliate of the Company or its subsidiaries.

          2.       Payment of Accrued Obligations. (a) The Company shall pay all Accrued
Obligations (as defined in Section 2(b) hereof) to the Executive as soon as
reasonably practicable following the Retirement Date; provided, however, that
any portion of the Accrued Obligations subject to plans or policies of the
Company shall be determined and paid in accordance with the terms of the
relevant plan or policy as applicable to the Executive.

          (b)     For purposes of this Agreement, “Accrued Obligations” shall mean, the
following:

		
	 	     (i)     the Executive’s current base salary through the Retirement Date
to the extent not theretofore paid; and
	 
	 	     (ii)    any vacation pay and expense reimbursements accrued by the
Executive as of the Retirement Date to the extent not theretofore paid.

 

 

          3.       Additional Payments and Benefits. Provided that the Executive has not
revoked the release contained in Section 9 hereof, and provided further that
the Executive complies with Section 7 hereof, the Company shall make the
payments and provide the benefits set forth in this Section 3:

          (a)     During the period commencing on the day next following the Retirement
Date and ending one year following the Retirement Date, the Company shall pay
to the Executive amounts which in the aggregate are equal to the Executive’s
current annual base salary of $285,000 per year, payable in accordance with the
Company’s regular payroll practices as then in effect;

          (b)     Each of following options to purchase shares of the Company’s Common
Stock granted to the Executive which shall be outstanding on the Retirement
Date shall expire at the close of business on the Retirement Date without
further action by the Executive or the Company and the Company shall pay to the
Executive within thirty days following the Retirement Date a aggregate cash
amount of $100,000 in consideration thereof:

	 	 	 	 	 	 	 	 	 
	 	 	Adjusted Exercise Price	 	Number of Shares
	Option Grant Date	 	(Per Share)	 	Currently Subject To Option
	
	 	
	 	

	June 19, 1996
	 	$	1.57	 	 	 	168,750	 
	June 22, 1999
	 	$	1.49	 	 	 	302,520.6	 

          Each of the following options to purchase shares of the Company’s Common
Stock granted to the Executive which shall be outstanding on the Retirement
Date shall expire at the close of business on the Retirement Date without
further action by the Executive or the Company and no payment shall be made by
the Company to the Executive in respect thereof:

	 	 	 	 	 	 	 	 	 
	 	 	Adjusted Exercise Price	 	Number of Shares
	Option Grant Date	 	(Per Share)	 	Currently Subject To Option
	
	 	
	 	

	June 30, 1997
	 	$	2.63	 	 	 	112,500	 
	June 25, 1998
	 	$	3.59	 	 	 	50,000	 
	June 28, 2000
	 	$	5.44	 	 	 	50,000	 
	February 5, 2001
	 	$	3.72	 	 	 	50,000	 

          (d)     The health insurance benefits currently being provided to the
Executive by the Company shall continue to be provided to the Executive by the
Company during the period commencing on the Retirement Date and ending one year
following the Retirement Date, subject to any modifications thereto applicable
to active employees of the Company. During such period, the Company shall
deduct from amounts payable to the Executive amounts equal to the amounts that
would have been payable by the Executive for such coverage, and at the times
such amounts would have been payable, if the Executive had continued as an
active employee of the Company.

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          4.       Retained Stock Options. Each of the following options to purchase
shares of the Company’s Common Stock granted to the Executive which shall be
outstanding on the Retirement Date: (i) shall not expire at the close of
business on the Retirement Date and (ii) may be exercised following the
Retirement Date in accordance with its terms:

	 	 	 	 	 	 	 	 	 
	 	 	Adjusted Exercise Price	 	Number of Shares
	Option Grant Date	 	(Per Share)	 	Currently Subject To Option
	
	 	
	 	

	December 24, 1992
	 	$	.72	 	 	 	40,500	 
	June 29, 1993
	 	$	.40	 	 	 	28,125	 
	June 23, 1995
	 	$	.47	 	 	 	67.500	 

          The Executive acknowledges that he does not hold any options to purchase
shares of the Company’s Common Stock other than as set forth in Section 3(b) or
this Section 4.

          5.       COBRA Coverage. Pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”), the Executive may elect to continue
coverage for the Executive and his dependents under the Company’s medical,
dental and vision insurance policies for a period of up to 18 months following
the first anniversary of the Retirement Date and the Executive shall pay all
expenses relating to such coverage in accordance with COBRA.

          6.       Federal and State Withholding. The Company shall deduct from the
amounts payable to the Executive pursuant to this Agreement the amount of all
required federal and state withholding taxes in accordance with the Executive’s
Form W-4 on file with the Company and all applicable social security taxes.

          7.       Noncompetition, Nondisclosure and Nonsolicitation. The Executive shall
comply with his obligations under Paragraph 7 of the Employment Agreement dated
as of December 16, 1995 (the “Employment Agreement”), between the Executive and
the Company.

          8.       Remedies; Scope of Covenants. The following provisions shall apply to
the covenants of the Executive contained in Section 7 hereof:

          (a)     without limiting the right of the Company to pursue all other legal
and equitable remedies available for violation by the Executive of the
covenants contained in Section 7 hereof, it is expressly agreed by the
Executive and the Company that such other remedies cannot fully compensate the
Company for any such violation and that the Company shall be entitled, in
addition to other rights and remedies existing in its favor, to a restraining
order or orders and other injunctive relief to prevent any such violation or
any continuing violation thereof;

          (b)     the Company and the Executive each intends and agrees that the
covenants contained in Section 7 hereof are reasonably designed to protect the
Company’s trade secrets and other legally protectable business interests
without unnecessarily or unreasonably restricting the Executive’s business
opportunities, but that if in any action before any court or agency legally
empowered to enforce the covenants contained in Section 7 hereof any term,
restriction, covenant or promise contained therein is found to be unreasonable
or otherwise unenforceable,

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then such term, restriction, covenant or promise shall be deemed modified
to the extent necessary to make it enforceable by such court or agency; and

          (c)     the Executive agrees that he will submit himself to the personal
jurisdiction of the courts of the State of Illinois in any action by the
Company to obtain injunctive or other relief.

          9.       General Release. The Executive, on behalf of himself and anyone
claiming through him, hereby agrees not to sue the Company or any of its
divisions, subsidiaries, affiliates or other related entities (whether or not
such entities are wholly owned) or any of the past, present or future
directors, officers, administrators, trustees, fiduciaries, employees, agents
or attorneys of the Company or any of such other entities, or the predecessors,
successors or assigns of any of them (hereinafter referred to as the “Released
Parties”), and agrees to release and discharge, fully, finally and forever, the
Released Parties from any and all claims, causes of action, lawsuits,
liabilities, debts, accounts, covenants, contracts, controversies, agreements,
promises, sums of money, damages, judgments and demands of any nature
whatsoever, in law or in equity, both known and unknown, asserted or not
asserted, foreseen or unforeseen, which the Executive ever had or may presently
have against any of the Released Parties arising from the beginning of time up
to and including the date on which this Agreement is executed, including,
without limitation, all matters in any way related to the Executive’s
employment by the Company or any of its affiliates, the terms and conditions
thereof, any failure to promote the Executive and the termination or cessation
of the Executive’s employment with the Company or any of its affiliates, and
including, without limitation, any and all claims arising under the Civil
Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Civil Rights
Act of 1866, the Age Discrimination in Employment Act, the Older Workers’
Benefit Protection Act, the Family and Medical Leave Act, the Americans With
Disabilities Act, the Employee Retirement Income Security Act of 1974, the
Illinois Human Rights Act, the Chicago or Cook County Human Rights Ordinance or
any other federal, state, local or foreign statute, regulation, ordinance or
order, or pursuant to any common law doctrine; provided, however, that nothing
contained in this Section 9 shall apply to, or release the Company from, any
obligation of the Company (i) contained in this Agreement or in any benefit
plan of the Company in which the Executive participates or (ii) to indemnify
the Executive pursuant to the Company’s certificate of incorporation or
by-laws. The consideration offered herein is accepted by the Executive as
being in full accord, satisfaction, compromise and settlement of any and all
claims or potential claims, and the Executive expressly agrees that he is not
entitled to, and shall not receive, any further recovery of any kind from the
Company or any of the other Released Parties, and that in the event of any
further proceedings whatsoever based upon any matter released herein, neither
the Company nor any of the other Released Parties shall have any further
monetary or other obligation of any kind to the Executive, including any
obligation for any costs, expenses or attorneys’ fees incurred by or on behalf
of the Executive. The Executive agrees that he has no present or future right
to employment with the Company or any of the other Released Parties and that he
will not apply for or otherwise seek employment with any of them.

          10.       Nondisclosure of this Agreement. The Executive agrees that unless and
until the Company discloses the terms of this Agreement to the public, the
Executive will not disclose the existence or terms of this Agreement to any
third party, except his accountants, attorneys and spouse, each of whom shall
be bound by this nondisclosure provision, or as may

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be required to comply with legal process; provided, however, that the
Executive shall be entitled to disclose fully the terms of Section 7 hereof to
any employer or prospective employer of the Executive. If a person not a party
to this Agreement requests or demands, by subpoena or otherwise, that the
Executive disclose or produce this Agreement or any terms or conditions hereof
prior to the public disclosure thereof by the Company, the Executive shall
immediately notify the Company and shall give the Company an opportunity to
respond to such notice before taking any action or making any decision in
connection with such request or subpoena. The Executive understands and agrees
that this nondisclosure requirement is a material inducement to the Company to
enter into this Agreement.

          11.       Successors; Binding Agreement. This Agreement shall inure to the
benefit of and be enforceable by the Executive and by his personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. In the event of the death of the Executive while any
amounts are payable to the Executive hereunder, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to such person or persons designated in writing by the Executive to
receive such amounts or, if no person is so designated, to the Executive’s
estate.

          12.       Notices. All notices and other communications required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly
given by a party hereto when delivered personally or by overnight courier or
five days after deposit in the United States mail, postage prepaid to the
following address of the other party hereto (or to such other address of such
other party as shall be furnished in accordance herewith):

	 	 	If to the Company, to:
	 
	 	 	Technology Solutions Company

205 North Michigan Avenue

Suite 1500

Chicago, Illinois 60601

Attention: General Counsel
	 
	 	 	If to the Executive, to:
	 
	 	 	Mr. William H. Waltrip

1261 Pequot Avenue

Southport, Connecticut 06490

          13.       Governing Law; Validity. The interpretation, construction and
performance of this Agreement shall be governed by and construed and enforced
in accordance with the internal laws of the State of Illinois without regard to
the principle of conflicts of laws.

          14.       Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties with respect to the subject matter hereof and
supersedes and preempts any prior understandings, agreements or representations
by or between the parties, written or oral, which may have related in any
manner to the subject matter hereof, including, but not limited to, the
Employment Agreement, which shall have no further force or effect as of the

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date that the last of the parties executes this Agreement, except for
Paragraph 7 thereof as contemplated by Section 7 hereof.

          15.       Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed to be an original and both of which together
shall constitute one and the same instrument.

          16.       Miscellaneous. No provision of this Agreement may be modified or
waived unless such modification or waiver is agreed to in writing and executed
by the Executive and by a duly authorized officer of the Company. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.
Failure by the Executive or the Company to insist upon strict compliance with
any provision of this Agreement or to assert any right which the Executive or
the Company may have hereunder shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

          17.       No Admission. Nothing in this Agreement is intended to, or shall be
construed as, an admission by the Company or any of the other Released Parties
that it violated any law, interfered with any right, breached any obligation or
otherwise engaged in any improper or illegal conduct with respect to the
Executive or otherwise. The Company, for itself and the other Released
Parties, hereby expressly denies any such illegal or wrongful conduct.

          18.       ACKNOWLEDGMENT BY EXECUTIVE. BY EXECUTING THIS AGREEMENT, THE
EXECUTIVE EXPRESSLY ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT CAREFULLY,
THAT HE FULLY UNDERSTANDS ITS TERMS AND CONDITIONS, THAT HE HAS BEEN ADVISED TO
CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS AGREEMENT, THAT HE HAS BEEN
ADVISED THAT HE HAS 21 DAYS WITHIN WHICH TO DECIDE WHETHER OR NOT TO EXECUTE
THIS AGREEMENT AND THAT HE INTENDS TO BE LEGALLY BOUND BY IT. DURING A PERIOD
OF SEVEN DAYS FOLLOWING THE DATE OF HIS EXECUTION OF THIS AGREEMENT, THE
EXECUTIVE SHALL HAVE THE RIGHT TO REVOKE THE RELEASE CONTAINED IN SECTION 9 OF
THIS AGREEMENT OF CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT BY
SERVING WITHIN SUCH PERIOD WRITTEN NOTICE OF REVOCATION. IF THE EXECUTIVE
EXERCISES HIS RIGHTS UNDER THE PRECEDING SENTENCE, HE SHALL FORFEIT ALL AMOUNTS
PAYABLE TO HIM PURSUANT TO SECTION 3 OF THIS AGREEMENT.

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          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by a duly authorized officer of the Company and the Executive has executed this
Agreement as of the day and year first above written.

	 	 	 	 	 
	 	 	TECHNOLOGY SOLUTIONS COMPANY
	 	 	 	 	 
	 	 	
By
	 	/s/ Paul R. Peterson
	 	 	 	

	 	 	              Paul
R. Peterson
	 	 	 	 	 
	 	 	EXECUTIVE:
	 	 	          /s/ William H. Waltrip
	 	 	

	 	 	              William H. Waltrip

7Employment Agreement with Stephen B. Oresman

 

Exhibit 10.03

EMPLOYMENT AGREEMENT

     Technology Solutions Company, a Delaware corporation doing business as
TSC, and Stephen B. Oresman (“Employee”) enter into this Employment Agreement
(“Agreement”) as of June 23, 2003.

     In consideration of the agreements and covenants contained in this
Agreement, TSC and Employee agree as follows:

     1.     Employment Duties: TSC shall employ Employee as Chief Executive Officer
and Chairman of the Executive Committee. Employee shall have such
responsibilities, duties and authority as the Board of Directors may reasonably
designate and are commensurate with the position of Chief Executive Officer and
Chairman of the Executive Committee. Employee shall perform faithfully the
duties assigned to him to the best of his ability.

     2.     Term of Employment: The term of employment (“Term of Employment”) covered
by this Agreement shall commence as of the effective date of this Agreement and
continue until terminated pursuant to Paragraph 3 below.

     3.     Termination: This Agreement may be terminated as follows:

          (a)     TSC may terminate Employee’s employment and this Agreement for any
reason upon giving Employee 90 days notice of termination. TSC may make the
termination effective at any time within the 90 day notice period (“Termination
Date”). During this period Employee shall make a good faith effort to satisfy
those professional obligations requested to be performed by TSC, which may
include transferring duties and confidential material. TSC must, however,
unless Employee is terminated for Serious Misconduct, continue Employee’s
salary for 90 days following the Termination Date and continue Employee’s
dental insurance and base term insurance of $50 thousand for two years
following the Termination Date (These payments are referred to collectively as
“Termination Payments”).

          (b)     TSC may terminate Employee’s employment and this Agreement immediately
without notice and with no salary and benefit continuation if Employee engages
in “Serious Misconduct.” For purposes of this Agreement, “Serious Misconduct”
means embezzlement or misappropriation of corporate funds, other acts of
dishonesty, significant activities materially harmful to TSC’s reputation, or
any significant violation of any statutory or common law duty of loyalty to
TSC.

          (c)     If, following a Change in Control, Employee’s title, position, salary,
or benefits is reduced or Employee’s duties or status is materially reduced,
and Employee resigns within 90 days after the reduction becomes effective, or
if Employee is ordered to relocate his residence for a period in excess of six
months to any location outside of the metropolitan area where he resides when
the Change in Control occurs and Employee declines and is terminated, Employee
shall receive one year salary continuation and two years of dental and term
insurance (in the base

 

 

amount of $50 thousand). Notwithstanding anything to the contrary in any
of Employee’s stock option agreements, Employee’s unvested shares at option
shall vest automatically upon a Change in Control. (A Change in Control is
defined as (i) the acquisition by any individual, entity or group, of
beneficial ownership (within the meaning of Rule 13 d-3 promulgated under the
Securities Exchange Act of 1934) of 40% or more of the outstanding shares of
the common stock of TSC; (ii) the approval of the stockholders of TSC of a
merger, where immediately after the merger, persons who were the holders of a
majority of TSC’s outstanding common stock immediately prior to the merger fail
to own at least a majority of the outstanding common stock of the surviving
entity in substantially the same proportions as their holdings of TSC common
stock immediately prior to the merger; or (iii) the sale of substantially all
the assets of TSC other than to a corporation in which more than 60% of the
outstanding shares are beneficially owned by the individuals and entities who
are the beneficial owners of the Company stock prior to the acquisition.

          (d)     If Employee dies, TSC must continue Employee’s Current Salary for a
period of 90 days following the date of his death. If Employee becomes
permanently disabled and unable to continue to work at TSC, TSC must pay
Employee’s Current Salary for 90 days following the date Employee is declared
permanently disabled, and his dental insurance and term insurance for a period
of one year following the date Employee is declared permanently disabled.

          (e)     If either party materially breaches this Agreement and fails to cure
the breach within 30 days after receiving notice of the breach from the
breached party, the breached party may consider this Agreement as terminated by
the breaching party.

          (f)     Employee may terminate his employment upon giving TSC 90 days notice.
TSC may make the termination effective at any time within the 90 day notice
period. During this period Employee shall make a good faith effort to satisfy
those professional obligations requested to be performed by TSC, which may
include transferring duties and confidential material.

          (g)     Notwithstanding anything in the foregoing to the contrary, if any of
the payments to Employee provided for in this Agreement, together with any
other payments which Employee has the right to receive from TSC or any
corporation which is a member of an “affiliated group” as defined in Section
1504(a) of the Code without regard to Section 1504(b) of the Internal Revenue
Code) of which TSC is a member, would constitute a “parachute payment” (as
defined in Section 280G(b)(2) of the Internal Revenue Code), the payments
pursuant to this Agreement shall be reduced to the largest amount as will
result in no portion of such payments being subject to the excise tax imposed
by Section 4999 of the Internal Revenue Code; provided, however, that in
determining whether any reduction in the payments under this Agreement pursuant
to this sentence is necessary, the mutually agreed upon value for the
non-compete provision as determined by an outside expert shall be deducted from
the value of the parachute payment. If after applying the value for the
non-compete provision, a reduction in payment is still necessary, the Employee
shall determine what portion of the parachute payment shall be reduced, and
such determination shall be conclusive and binding on TSC with respect to its
treatment of the payment for tax reporting purposes.

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     4.     Salary: As compensation for his services, TSC shall pay Employee a base
salary of not less than the amount listed in Exhibit A to this Agreement.
Employee’s base salary shall be subject to annual review and may, at the
discretion of the Board of Directors, be adjusted from that listed in Exhibit A
according to Employee’s responsibilities, capabilities and performance during
the preceding year.

     5.     Bonus and Stock Options: Employee may be awarded a bonus of up to 200% of
salary at the discretion of the Board of Directors. Employee shall participate
in the Company’s Stock Incentive Program and may be awarded options in TSC
Stock at the discretion of the Board of Directors.

     6.     Employee Benefits: During the Term of Employment, Employee shall be
entitled to participate in such employee benefit plans, including group life,
health and dental insurance, and shall receive all other fringe benefits as TSC
may make available generally to its Vice Presidents.

     7.     Business Expenses: TSC shall reimburse Employee for all reasonable and
necessary business expenses incurred by Employee in performing his duties.
Employee shall provide TSC with supporting documentation sufficient to satisfy
reporting requirements of the Internal Revenue Service and TSC. TSC’s
determination as to reasonableness and necessary shall be final.

     8.     Noncompetition and Nondisclosure: Employee acknowledges that the
successful development and marketing of TSC’s professional services and
products require substantial time and expense. Such efforts generate for TSC
valuable and proprietary information (“Confidential Information”) which gives
TSC a business advantage over others who do not have such information.
Confidential Information of TSC and its clients and prospects includes, but is
not limited to, the following: business strategies and plans; proposals;
deliverables; prospects and customer lists; methodologies; training materials;
and computer software. Employee acknowledges that during the Term of
Employment, he will obtain knowledge of such Confidential Information.
Accordingly, Employee agrees to undertake the following obligations which he
acknowledges to be reasonably designed to protect TSC’s legitimate business
interests without unnecessarily or unreasonably restricting Employee’s
post-employment opportunities:

          (a)     Upon termination of the Term of Employment for any reason, Employee
shall return all TSC property, including but not limited to computer programs,
files, notes, records, charts, or other documents or things containing in whole
or in part any of TSC’s Confidential Information;

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          (b)     During the Term of Employment and subsequent to termination, Employee
agrees to treat all such Confidential Information as confidential and to take
all necessary precautions against disclosure of such information to third
parties during and after Employee’s employment with TSC;

          (c)     Without limiting the obligations of Paragraph 8(b), Employee shall
not, for himself or as an agent, partner or employee of any person, firm or
corporation: (i) for a period of one year following his termination of
employment for any reason, engage in the practice of consulting or related
services for any client of TSC for whom Employee performed services, or
prospective TSC client to whom Employee submitted, or assisted in the
submission of a proposal during the two year period preceding his termination
of employment; or (ii) for a period of one years following any termination for
any reason, participate in or have a financial, management or other interest in
any business enterprise that engages in, or within one year of the termination
of Employee’s employment has plans to engage in, substantial and direct
competition with TSC if such participation will likely involve the use by
Employee of business plans, strategies and other confidential TSC business
information developed or acquired by Employee during his employment as a senior
officer of TSC;

          (d)     During a one year period immediately following Employee’s termination
of employment for any reason, Employee shall not induce or assist in the
inducement of any TSC employee away from TSC’s employ or from the faithful
discharge of such employee’s contractual and fiduciary obligations to serve
TSC’s interests with undivided loyalty;

          (e)     For one years following his termination of employment for any reason,
Employee shall keep TSC currently advised in writing of the name and address of
each business organization for which he acts as agent, partner, representative
or employee.

     9.     Remedies: Employee recognizes and agrees that a breach of any or all of
the provisions of Paragraph 8 will constitute immediate and irreparable harm to
TSC’s business advantage, including but not limited to TSC’s valuable business
relations, for which damages cannot be readily calculated and for which damages
are an inadequate remedy. Accordingly, Employee acknowledges that TSC shall
therefore be entitled to an order enjoining any further breaches by the
Employee. Employee agrees to reimburse TSC for all costs and expenses,
including reasonable attorneys’ fees incurred by TSC in connection with the
enforcement of its rights under any provision of this Agreement.

     10.   Intellectual Property: During the Term of Employment, Employee shall
disclose to TSC all ideas, inventions and business plans which he develops
during the course of his employment with TSC which relate directly or
indirectly to TSC’s business, including but not limited to any computer
programs, processes, products or procedures which may, upon application, be
protected by patent or copyright. Employee agrees that any such ideas,
inventions or business plans shall be the property of TSC and that Employee
shall at TSC’s request and cost, provide TSC with such assurances as is
necessary to secure a patent or copyright.

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     11.     Principles and Policies: Employee agrees to be bound by TSC’s
principles and policies, including Principles and Policies of Business Conduct,
as amended from time to time, which is incorporated herein by reference.

     12.     Assignment: Employee acknowledges that the services to be rendered
pursuant to this Agreement are unique and personal. Accordingly, Employee may
not assign any of his rights or delegate any of his duties or obligations under
this Agreement. Subject to Paragraph 3(c) above, TSC may assign its rights,
duties or obligations under this Agreement to a subsidiary or affiliated
company of TSC or purchaser or transferee of a majority of TSC’s outstanding
capital stock or a purchaser of all, or substantially all, of the assets of
TSC.

     13.     Notices: All notices shall be in writing, except for notice of
termination of employment, which may be oral if confirmed in writing within 14
days. Notices intended for TSC shall be sent by registered or certified mail
addressed to it at 205 North Michigan Avenue, 15th Floor, Chicago, Illinois
60601 or its current principal office, and notices intended for Employee shall
be either delivered personally to him or sent by registered or certified mail
addressed to his last known address.

     14.     Entire Agreement: This Agreement and Exhibit A attached hereto
constitute the entire agreement between TSC and Employee. Neither Employee nor
TSC may modify this Agreement by oral agreements, promises or representations.
The parties may modify this Agreement only by a written instrument signed by
the parties.

     15.     Applicable Law: This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois.

     16.     Mediation of Disputes: Neither party shall initiate arbitration or
other legal proceedings (except for any claim under Paragraph 8 of this
Agreement), against the other party, or, in the case of TSC, any of its
directors, officers, employees, agents, or representatives, relating in any way
to this Agreement, to Employee’s employment with TSC, the termination of his
employment or any or all other claims that one party might have against the
other party until 30 days after the party against whom the claim[s] is made
(“Respondent”) receives written notice from the claiming party of the specific
nature of any purported claim and the amount of any purported damages.
Employee and TSC further agree that if Respondent submits the claiming party’s
claim to the Center for Public Resources, 680 Fifth Avenue, New York, New York
10019, for nonbinding mediation prior to the expiration of such 30 day period,
the claiming party may not institute arbitration or other legal proceedings
against Respondent until the earlier of (i) the completion of nonbinding
mediation efforts, or (ii) 90 days after the date on which the Respondent
received written notice of the claimant’s claim.

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     17.     Binding Arbitration: Employee and TSC agree that all claims or
disputes relating to his employment with TSC or the termination of such
employment, and any and all other claims that Employee might have against TSC,
any TSC director, officer, employee, agent, or representative, and any and all
claims or disputes that TSC might have against Employee (except for any claims
under Paragraph 8 of this Agreement) shall be resolved by expedited
arbitration. The party pursuing a claim should submit the claim to
Jams/Endispute, Inc., Three First National Plaza, 70 West Madison, Suite 200,
Chicago, IL 60602. Such arbitration shall be conducted in Chicago before a
single arbitrator within twenty days of the submission of a claim. The parties
shall select an arbitrator by mutual agreement from a panel of arbitrators
proposed by Jams/Endispute, Inc. The panel shall consist of former judges
experienced in arbitrating employment disputes. If the parties are unable to
agree on an arbitrator, Jams/Endispute, Inc. shall select an arbitrator in
accordance with its procedures.

     The parties shall exchange documents relevant to the claims alleged, but
shall undertake no additional discovery. The parties may submit pre-hearing
briefs only. The arbitration proceeding shall not be transcribed or otherwise
recorded. The arbitrator shall render an award within seven days of completion
of the hearing. Both parties agree that the arbitrator’s award shall be final
and binding, and the parties waive any right to appeal.

     18.     Severability: Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     19.     Employee acknowledges that he has read, understood and accepts the
provisions of this Agreement.

	 	 	 	 	 	 	 
	Technology Solutions Company	 	Stephen B. Oresman
	 	 	 	 	 	 	/s/ Stephen B. Oresman
	By:	 	Paul R. Peterson	 	

	
	 	 
	 	 	 	 	 	 	 
	Position:	 	Senior Vice
President, General Counsel and Corporate Secretary

	 	 	 	 
	 	 	 	 	 	 	 
	Date:	 	August 1, 2003

	 	Date:
	 	August 1,
2003

6

 

EXHIBIT A

	 	 	 
	EMPLOYEE:	 	
Stephen B. Oresman
	 	 	 
	POSITION:	 	
Chief Executive Officer and Chairman of the Executive Committee
	 	 	 
	BASE SALARY:	 	
$250 thousand
	 	 	 
	EFFECTIVE DATE:	 	
June 23, 2003

	 	 	 
	 	 	/s/ Stephen B. Oresman
	 	 	

	 	 	
Employee
	 	 	 
	 	 	August 1, 2003
	 	 	

	 	 	
Date
	 	 	 
	 	 	Paul R. Peterson
	 	 	

	 	 	
Technology Solutions Company
	 	 	 
	 	 	August 1, 2003
	 	 	

	 	 	
Date

7

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